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00'"'Ev ENSIGN MSU E.JEFFREY GARRISON Lodi Health Care Center FACILITY ADMINISTRATOR& 1120 Sylvia Drive AUTHORIZED AGENT Lodi,CA 95240 phone(209)368-6641 April 2, 2001 fax(209)369-1407 Re: Change in Management Lodi Health Care Center(the"Facility") 1120 Sylvia Drive,Lodi,CA Dear Vendor: As you are probably aware, pursuant to California Health and Safety Code §13 25.5, Lodi Health Care Center has been placed under temporary management by the California Department of Heaith Services. Effective Friday,March 30,2001 at 12:00 noon,the Department appointed Ensign Bellflower LLC(herein"Ensign")as Temporary Manager under the Code. As Temporary Manager, Ensign is empowered to operate Lodi Health Care Center in accordance with applicable laws and regulations, and to act as necessary to bring the Facility into compliance therewith. This authority includes the power to enter into new service,supplier,contractor and vendor relationships,and to use facility revenues plus (if necessary) funds provided by the State to pay for goods and services delivered to the Facility at Ensign's request during the management period. Ensign's authority does not include the power to pay for goods or services delivered to the Facility by non- employees prior to the effective date of Ensign's appointment. Claims for obligations incurred prior to the management period should still be referred to the prior licensee,TLC Health Care, Inc.,3705 W.Memorial Rd,' Suite 505,Oklahoma City,OK 73134. We at Ensign appreciate the confidence placed in us by the Department.We pledge to work diligently with the Facility's staff,patients, family members,community resources and Department personnel to ensure that all of the Facility's residents receive the quality care they deserve,and to secure the long-term viability of Lodi Health Care Center as a leading provider of healthcare services in the Lodi community. We hope that you will join us in this endeavor,and we look forward to working with you. Sincerely, ENSIGN BELLFLOWER LLC, as H&S §1325.5 Temporary Manager for The California Department of Health Services By E ff y Garr on Facility Administrator&Authorized Agent EJG/tk cc: Management File THE ENSIGN GROUP, INC. 32232 PASEO ADELANTO,SUITE 100 P SAN JUAN CAPISTRANO, CA 92675 PHONE (949)487-9500 fi FAx (949)487-9400 www.ensigngroup.net