Common use of Conditions Precedent to the Loan Clause in Contracts

Conditions Precedent to the Loan. As a condition precedent to Lender making the Loan, the Borrower shall deliver to Lender on or before the date of the Loan closing, the following, in form and substance satisfactory to Lender: (a) The Note; (b) Mortgage and Security Agreement; (c) UCC-1 Financing Statements; (d) Evidence satisfactory to Lender of ownership of the Collateral by Borrower free and clear of encumbrances of any kind; (e) Guaranties from Mountain View Nursing, LLC and AdCare Health Systems, Inc. (collectively, the “Guarantor” or “Guarantors”); (f) Such other documents as reasonably may be required by the Lender or Lender’s counsel. The Loan documents as provided above (collectively, the “Loan Documents”), when prepared, shall set forth the matters contained in the Loan Agreement and contain such other provisions as are deemed necessary or desirable by Lender. The form and substance of all such documents must be satisfactory to Lender prior to disbursement by Lender of any of the proceeds of the Loan.

Conditions Precedent to the Loan. As a condition precedent to Lender making the Loan, the Borrower shall deliver to Lender on or before the date of the Loan closing, the following, in form and substance satisfactory to Lender: (a) The Note; (b) Mortgage The Deed to Secure Debt and Security AgreementAgreement to be filed on the Property; (c) Assignment of Leases and Rents to be filed on the Property; (d) UCC-1 Financing Statements; (de) Evidence satisfactory to Lender of ownership of the Collateral by Borrower free and clear of encumbrances of any kind; (ef) Guaranties Corporate guaranties from Mountain View Mt. ▇▇▇▇ Nursing, LLC and LLC, AdCare Health Systems, Inc. and Hearth & Home of Ohio, Inc. (collectively, the “Guarantor” or “Guarantors”); (fg) Such other documents as reasonably may be required by the Lender or Lender’s counsel. The Loan documents as provided above (collectively, the “Loan Documents”), when prepared, shall set forth the matters contained in the Loan Agreement and contain such other provisions as are deemed necessary or desirable by Lender. The form and substance of all such documents must be satisfactory to Lender prior to disbursement by Lender of any of the proceeds of the Loan.

Conditions Precedent to the Loan. As a The obligation of Lender to make the Loan is subject to the condition precedent to that Lender making the Loan, the Borrower shall deliver to Lender on or before the date of the Loan closing, the followinghave received, in form and substance satisfactory to Lender, the following: (a) The Notethis Agreement; (b) Mortgage and Security Agreementone or more promissory notes which shall be in the form of Exhibit C hereto in the aggregate principal amount of the Loan; (c) UCC-1 Financing Statementsa certificate of the Secretary of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement; (d) Evidence satisfactory to Lender of ownership of the Collateral by Borrower free and clear of encumbrances of any kindUCC National Form Financing Statement; (e) Guaranties from Mountain View Nursing, LLC and AdCare Health Systems, Inc. (collectively, the “Guarantor” or “Guarantors”)an intellectual property security agreement; (f) Such other documents as reasonably may be required by a warrant to purchase 40,000,000 shares of the Lender or Lender’s counsel. The Loan documents common stock of Borrower (subject to adjustment and limitations as provided above herein and therein); (collectivelyg) a certificate of insurance naming Lender as loss payee and additional insured; (h) current financial statements of Borrower; (i) an audit of the Collateral, the “Loan Documents”), when prepared, results of which shall set forth the matters contained in the Loan Agreement and contain such other provisions as are deemed necessary or desirable by Lender. The form and substance of all such documents must be satisfactory to Lender prior to disbursement by Lender of any Lender; (j) payment of the proceeds Lender Expenses then due specified in Section 0 hereof; (k) intercreditor agreement with any subordinated creditor that the Lender reasonably deems necessary; and (l) such other documents, and completion of the Loansuch other matters, as Lender may reasonably deem necessary or appropriate.

Conditions Precedent to the Loan. As a condition precedent to Lender making the Loan, the Borrower shall deliver to Lender on or before the date of the Loan closing, the following, in form and substance satisfactory to Lender: (a) The Note; (b) Mortgage and Security Agreement; (c) UCC-1 Financing Statements; (d) Collateral Assignment of Certificate of Deposit in the amount of $1,000,000.00 in favor of Lender; (e) Guaranty from AdCare Health Systems, Inc. and APH&R NURSING, LLC (collectively, the “Guarantor” or “Guarantors”); (f) Evidence satisfactory to Lender of ownership of the Collateral by Borrower free and clear of encumbrances of any kind; (e) Guaranties from Mountain View Nursing, LLC and AdCare Health Systems, Inc. (collectively, the “Guarantor” or “Guarantors”); (fg) Such other documents as reasonably may be required by the Lender or Lender’s counsel. The Loan documents as provided above (collectively, the “Loan Documents”), when prepared, shall set forth the matters contained in the Loan Agreement and contain such other provisions as are deemed necessary or desirable by Lender. The form and substance of all such documents must be satisfactory to Lender prior to disbursement by Lender of any of the proceeds of the Loan.