DIRECTORS AND OFFICERS
                            INDEMNIFICATION AGREEMENT

         This  INDEMNIFICATION  AGREEMENT,  dated  as of July  ___,  2000  (this
"Agreement"),  is  made  and  entered  into  by  and  between  Omega  Healthcare
Investors,  Inc., a Maryland corporation (the "Company"), and __________________
("Indemnitee").

                                    RECITALS

A. It is essential to the Company to retain and attract as directors and
officers the most capable persons available;

B. Indemnitee is a director and/or officer of the Company;

C. Both the Company and  Indemnitee  recognize the increased  risk of litigation
and other claims being asserted  against  directors and officers of companies in
today's environment;

D. The Company's  Articles of  Restatement,  as amended,  (the  "Articles")  and
Amended  and  Restated  Bylaws  (the  "Bylaws")  provide  that the  Company  may
indemnify  its  directors  and officers and may advance  expenses in  connection
therewith, and Indemnitee's willingness to serve as a director and/or officer of
the Company is based in part on Indemnitee's reliance on such provisions; and

E. In  recognition  of  Indemnitee's  need for  substantial  protection  against
personal  liability in order to enhance  Indemnitee's  continued  service to the
Company in an  effective  manner,  and  Indemnitee's  reliance on the  aforesaid
provisions of the Articles and Bylaws,  and in part to provide  Indemnitee  with
specific  contractual  assurance that the protection promised by such provisions
will be  available  to  Indemnitee  (regardless  of,  among  other  things,  any
amendment to or revocation of such  provisions or any change in the  composition
of the Company's Board of Directors or any  acquisition or business  combination
transaction  relating to the  Company),  the  Company  wishes to provide in this
Agreement  for  the  indemnification  of and  the  advancement  of  expenses  to
Indemnitee  as set forth in this  Agreement,  and for the coverage of Indemnitee
under directors' and officers' liability insurance policies.

         NOW,  THEREFORE,  in consideration of the mutual  agreements herein set
forth, the parties hereto hereby agree as follows:

1.  Certain Definitions.

     1.1 "Claim" means any threatened,  pending,  or completed action,  suit, or
proceeding,  or any  inquiry or  investigation,  whether  instituted,  made,  or
conducted  by the  Company or any other  party,  that  Indemnitee  in good faith
believes might lead to the institution of any such action,  suit, or proceeding,
whether civil, criminal, administrative, investigative, or other.

     1.2 "Expenses" includes reasonable attorney's fees and all other reasonable
costs,   expenses,   and  obligations   paid  or  incurred  in  connection  with
investigating,  defending, being a witness in, or participating in (including on
appeal),  or preparing to defend,  be a witness in, or participate in, any Claim
relating to any Indemnifiable Event.

     1.3 "Indemnifiable  Event" means any actual or asserted event or occurrence
related to the fact that Indemnitee is or was a director,  officer, employee, or
agent of the  Company,  or is or was  serving at the request of the Company as a
director, officer, employee, or agent of another corporation, partnership, joint
venture, trust, or other entity, whether or not for profit (including the heirs,
executors,  administrators,  or estate of such  person) or anything  done or not
done by Indemnitee in any such capacity.  "Indemnifiable Event" will not include
any event or  occurrence  to the extent that  indemnification  is not  permitted
under applicable law.

2.  Basic  Indemnification  Arrangement.  In the event  Indemnitee  was,  is, or
becomes a party to or witness or other  participant  in, or is  threatened to be
made a party to or  witness  or other  participant  in, a Claim by reason of (or
arising in whole or in part out of) an  Indemnifiable  Event,  the Company  will
indemnify  Indemnitee  to  the  fullest  extent  permitted  by law  as  soon  as
practicable but in any event no later than 60 calendar days after written demand
is presented to the Company,  against any and all  Expenses,  judgments,  fines,
penalties, and amounts paid in settlement (including all interest,  assessments,
and other  charges  paid or  payable  in  connection  with or in respect of such
Expenses,  judgments,  fines,  penalties, or amounts paid in settlement) of such
Claims.  The Indemnitee shall give prompt notice to the Company of any actual or
asserted event or occurrence that could reasonably be expected to give rise to a
Claim.  The failure by the  Indemnitee  to notify the Company of such Claim will
not relieve the Company from any  liability  hereunder  unless,  and only to the
extent  that,  the  Company  did not learn of the Claim and such  failure  shall
materially  prejudice  the  ability  of the  Company  to defend  such  Claims or
otherwise   perfect  rights  to  any  insurance   coverage   relating   thereto.
Notwithstanding anything in this Agreement to the contrary,  Indemnitee will not
be entitled to indemnification pursuant to this Agreement in connection with any
Claim initiated by Indemnitee  against the Company (other than a claim described
in  Section 3 hereof) or any  director  or  officer  of the  Company  unless the
Company  has joined in or  consented  to the  initiation  of such  Claim.  If so
requested by Indemnitee,  the Company will advance  (within two business days of
such request) any and all Expenses to Indemnitee  upon receipt of an undertaking
from Indemnitee  agreeing to repay any amounts advanced  hereunder to the extent
that it is finally determined that Indemnitee is not entitled to indemnification
for such Expenses.

3.  Indemnification  for  Additional   Expenses.   The  Company  will  indemnify
Indemnitee against,  and, if requested by Indemnitee,  will (within two business
days of such request) advance to Indemnitee,  any and all reasonable  attorneys'
fees and other costs,  expenses,  and obligations paid or incurred by Indemnitee
in connection with any claim, action, suit, or proceeding asserted or brought by
Indemnitee for (i) indemnification or advance payment of Expenses by the Company
under  this  Agreement  or any other  agreement  or under any  provision  of the
Articles  or  Bylaws  now  or  hereafter  in  effect   relating  to  Claims  for
Indemnifiable  Events and/or (ii) recovery  under any  directors'  and officers'
liability  insurance policies  maintained by the Company,  regardless of whether
Indemnitee  ultimately  is  determined  to be entitled to such  indemnification,
advance expense payment, or insurance recovery, as the case may be.

4. Partial Indemnity, Etc. If Indemnitee is entitled under any provision of this
Agreement  to  indemnification  by the  Company  for  some or a  portion  of the
Expenses, judgments, fines, penalties, and amounts paid in settlement of a Claim
but  not,  however,  for all of the  total  amount  thereof,  the  Company  will
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled.  Moreover,  notwithstanding any other provision of this Agreement,  to
the extent that  Indemnitee  has been  successful  on the merits or otherwise in
defense of all Claims  relating to an  Indemnifiable  Event or in defense of any
issue or matter therein, including dismissal without prejudice,  Indemnitee will
be  indemnified  against all  Expenses  incurred  in  connection  therewith.  In
connection  with any  determination  as to whether  Indemnitee is entitled to be
indemnified  hereunder,  the burden of proof will be on the Company to establish
that Indemnitee is not so entitled.

5. Action by Company. The Company will use its best efforts to take, or cause to
be taken,  all  action  necessary  to  fulfill  any  requirements  to  providing
indemnification as contemplated by this Agreement including, but not limited to,
any actions  required by Maryland General  Corporation  Law.  Promptly after the
date hereof,  the Company will use its  commercially  reasonable best efforts to
increase the  aggregate  liability  limits under its  directors'  and  officers'
insurance policy to not less than $15 million on terms acceptable to the Company
and Indemnitee.

6. No Presumption. For purposes of this Agreement, the termination of any claim,
action,  suit, or proceeding,  by judgment,  order,  settlement (whether with or
without court approval), or conviction, or upon a plea of nolo contendere or its
equivalent,  will not in and of itself create a presumption  that Indemnitee did
not meet any  particular  standard of conduct or have any  particular  belief or
that a court has determined that  indemnification is not permitted by applicable
law.

7. Non-Exclusivity,  Etc. The rights of Indemnitee hereunder will be in addition
to any other rights  Indemnitee may have under the Articles,  the Bylaws, or the
Maryland General Corporation Law or otherwise;  provided,  however,  that to the
extent that Indemnitee otherwise would have any greater right to indemnification
under any  provision  of the Articles or Bylaws as in effect on the date hereof,
Indemnitee will be deemed to have such greater right  hereunder;  and,  provided
further,  that to the  extent  that any change is made to the  Maryland  General
Corporation  Law  (whether  by  legislative  action or judicial  decision),  the
Articles,  and/or the Bylaws which permits any greater right to  indemnification
than that provided under this Agreement as of the date hereof,  Indemnitee  will
be deemed to have such greater right  hereunder.  The Company will not adopt any
amendment  to the  Articles  or the Bylaws the effect of which would be to deny,
diminish,  or encumber Indemnitee's right to indemnification under the Articles,
the Bylaws, the Maryland General Corporation Law, or otherwise as applied to any
act or failure to act occurring in whole or in part prior to the date upon which
the  amendment  was  approved by the  Company's  Board of  Directors  and/or its
stockholders, as the case may be.

8.  Liability  Insurance  and Funding.  The Company  will  maintain an insurance
policy or policies providing directors' and officers' liability insurance to the
extent,  in the judgment of the Board of Directors,  such insurance is available
on reasonable terms and at reasonable premiums and Indemnitee will be covered by
such policy or policies,  in accordance  with its or their terms, to the maximum
extent of the coverage available for any Company director or officer.  Copies of
all  correspondence  between the Company and the company or companies  providing
such  insurance  shall be promptly  delivered to  Indemnitee by the Company upon
request of  Indemnitee.  The Company may, but will not be required to,  create a
trust fund,  grant a security  interest or use other  means  (including  without
limitation  a letter of credit) to ensure the payment of such  amounts as may be
necessary to satisfy its obligations to indemnify and advance expenses  pursuant
to this Agreement.

9. Subrogation.  In the event of payment under this Agreement,  the Company will
be  subrogated  to the extent of such  payment to all of the  related  rights of
recovery of Indemnitee  against other persons or entities.  The Indemnitee  will
execute  all  papers  reasonably  required  and will do  everything  that may be
reasonably necessary to secure such rights and enable the Company effectively to
bring suit to enforce  such rights  (all of  Indemnitee's  reasonable  costs and
expenses,  including attorneys' fees and disbursements,  to be reimbursed by or,
at the option of Indemnitee, advanced by the Company).

10. No  Duplication  of  Payments.  The  Company  will not be liable  under this
Agreement  to make any  payment  in  connection  with  any  claim  made  against
Indemnitee to the extent  Indemnitee  has otherwise  actually  received  payment
(under any insurance  policy,  the Articles,  or the Bylaws or otherwise) of the
amounts otherwise indemnifiable hereunder.

11. Joint Defense. Notwithstanding anything to the contrary herein contained, if
(a) Indemnitee  elects to retain counsel in connection with any Claim in respect
of which  indemnification  may be  sought  by  Indemnitee  against  the  Company
pursuant to this  Agreement and (b) any other director or officer of the Company
may also be subject to  liability  arising  out of such Claim and in  connection
with such Claim may seek  indemnification  against  the  Company  pursuant to an
agreement  similar  to this  Agreement,  Indemnitee,  together  with such  other
persons,  will employ counsel  reasonably  acceptable to all indemnities and all
such other persons to represent jointly Indemnitee and such other persons unless
the Board,  upon the written request of Indemnitee  delivered to the Company (to
the attention of the Secretary) setting forth in reasonable detail the basis for
such request, determines that such joint representation would be precluded under
the applicable  standards of professional  conduct then prevailing under the law
of the State of  Maryland,  in which  case  Indemnitee  will be  entitled  to be
represented  by  separate  counsel.  In the event that the Board fails to act on
such  request  within 30 calendar  days after  receipt  thereof by the  Company,
Indemnitee  will be deemed to be entitled to be represented by separate  counsel
in  connection  with such Claim and the  reasonable  fees and  expenses  of such
counsel shall be Expenses subject to this Agreement.

12. Successors and Binding Agreement.

          (a)  The  Company  will  require  any  successor  (whether  direct  or
     indirect, by purchase, merger, consolidation, reorganization, or otherwise)
     to all or  substantially  all of the business or assets of the Company,  by
     agreement in form and substance  satisfactory  to Indemnitee,  expressly to
     assume and agree to perform  this  Agreement  in the same manner and to the
     same extent the Company would be required to perform if no such  succession
     had taken  place.  This  Agreement  will be  binding  upon and inure to the
     benefit of the Company and any successor to the Company,  including without
     limitation any person acquiring directly or indirectly all or substantially
     all of the business or assets of the Company  whether by purchase,  merger,
     consolidation,  reorganization,  or  otherwise  (and  such  successor  will
     thereafter  be deemed the "Company"  for purposes of this  Agreement),  but
     will not  otherwise be  assignable,  transferable,  or  delegatable  by the
     Company.

          (b) This  Agreement will inure to the benefit of and be enforceable by
     the   Indemnitee's   personal   or   legal   representatives,    executors,
     administrators, successors, heirs, distributees, and legatees.

          (c) This  Agreement  is  personal in nature and neither of the parties
     hereto  will,  without  the  consent of the  other,  assign,  transfer,  or
     delegate this  Agreement or any rights or obligations  hereunder  except as
     expressly  provided  in  Sections  12(a) and 12(b).  Without  limiting  the
     generality  or  effect  of the  foregoing,  Indemnitee's  right to  receive
     payments  hereunder will not be assignable,  transferable,  or delegatable,
     whether by pledge,  creation of a security  interest,  or otherwise,  other
     than by a transfer by the  Indemnitee's  will or by the laws of descent and
     distribution  and,  in the event of any  attempted  assignment  or transfer
     contrary to this Section  12(c),  the Company will have no liability to pay
     any amount so attempted to be assigned, transferred, or delegated.

13. Notices. For all purposes of this Agreement,  all communications,  including
without  limitation  notices,  consents,  requests,  or  approvals,  required or
permitted  to be given  hereunder  will be in writing and will be deemed to have
been duly  given when hand  delivered  or  dispatched  by  electronic  facsimile
transmission  (with receipt  thereof  orally  confirmed),  or five calendar days
after having been mailed by United States  registered or certified mail,  return
receipt requested,  postage prepaid,  or one business day after having been sent
for next-day  delivery by a nationally  recognized  overnight  courier  service,
addressed to the Company (to the  attention of the  Secretary of the Company) at
its  principal  executive  office  and to  the  Indemnitee  at the  Indemnitee's
principal  residence as shown in the Company's most current records,  or to such
other  address as any party may have  furnished  to the other in writing  and in
accordance herewith, except that notices of changes of address will be effective
only upon receipt.

14. Governing Law. The validity,  interpretation,  construction, and performance
of this  Agreement  will be governed by and  construed  in  accordance  with the
substantive  laws  of the  State  of  Maryland,  without  giving  effect  to the
principles of conflict of laws of such State.

15.  Validity.  If any  provision of this  Agreement or the  application  of any
provision  hereof to any person or circumstance is held invalid,  unenforceable,
or otherwise  illegal,  the remainder of this  Agreement and the  application of
such provision to any other person or circumstance will not be affected, and the
provision so held to be invalid,  unenforceable,  or  otherwise  illegal will be
reformed  to  the  extent  (and  only  to  the  extent)  necessary  to  make  it
enforceable, valid, or legal.

16.  Miscellaneous.  No provision of this Agreement may be waived,  modified, or
discharged  unless  such  waiver,  modification,  or  discharge  is agreed to in
writing signed by Indemnitee  and the Company.  No waiver by either party hereto
at any time of any  breach by the other  party  hereto  or  compliance  with any
condition  or  provision  of this  Agreement to be performed by such other party
will be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations,  oral
or  otherwise,  expressed or implied with respect to the subject  matter  hereof
have been  made by  either  party  which  are not set  forth  expressly  in this
Agreement.  References  to  Sections  are to  references  to  Sections  of  this
Agreement.

17.  Counterparts.  This Agreement may be executed in one or more  counterparts,
each of which will be deemed to be an original  but all of which  together  will
constitute one and the same agreement.


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         IN WITNESS  WHEREOF,  the parties to this  Agreement have executed this
Agreement as of the date first above written.

                                               OMEGA HEALTHCARE INVESTORS, INC.




                                      By:  _____________________________________
                                      Name:  ___________________________________
                                      Title: ___________________________________




                                      Name:  ___________________________