July 31, 2013 Uses in Amendment to Section 9.4 of the Loan Agreement Clause

Amendment to Section 9.4 of the Loan Agreement from Secured Loan Agreement

This SECOND AMENDMENT TO SECURED LOAN AGREEMENT AND PAYMENT GUARANTY (this Amendment), made this 27th day of June, 2013, by and among WOODLAND HILLS HC PROPERTY HOLDINGS, LLC, NORTHRIDGE HC&R PROPERTY HOLDINGS, LLC, APH&R PROPERTY HOLDINGS, LLC, WOODLAND HILLS HC NURSING, LLC, NORTHRIDGE HC&R NURSING, LLC, and APH&R NURSING, LLC, each a Georgia limited liability company (each a Borrower, and together, the Borrowers), ADCARE HEALTH SYSTEMS, INC., an Ohio corporation, ADCARE PROPERTY HOLDINGS, LLC, an Ohio limited liability company, and ADCARE OPERATIONS, LLC, a Georgia limited liability company (each a Guarantor, and together, the Guarantors), and KEYBANK NATIONAL ASSOCIATION, a national banking association, its successors and assigns (Lender).

Amendment to Section 9.4 of the Loan Agreement. Section 9.4 of the Loan Agreement, Required Repairs, Replacements, Renovations and Other Work, is hereby amended by deleting the date June 28, 2013 found in clause (a) of such Section and substituting therefor the date July 31, 2013.