Common use of Nonrecourse Debt Clause in Contracts

Nonrecourse Debt. The following individuals or entities identified in the Firm Commitment: Summit Healthcare REIT, Inc., as identified in the Firm Commitment does not assume personal liability for payments due under the Note and the Borrower’s Security Instrument, or for the payments to the Reserve for Replacement, or for matters not under its control, provided that each said individual or entity shall remain personally liable under this Agreement only with respect to the matters hereinafter stated; namely: (a) for funds or property of the Project coming into its hands which, by the provisions of this Agreement, it is not entitled to retain; (b) for authorizing the conveyance, assignment, transfer, pledge, encumbrance, or other disposition of the Mortgaged Property or any interest therein in violation of this Agreement without the prior written approval of HUD; and (c) for its own acts and deeds, or acts and deeds of others, which it has authorized in violation of the provisions of this Section. The obligations of the individuals or entities listed in this Section shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, any termination of this Agreement, and any release of record of the Borrower’s Security Instrument. Previous versions obsolete Page 28 of 32 form HUD-92466-ORCF (06/2014) a Maryland corporation By: /s/ E▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Name: E▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Title: CFO/Treasurer A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange) On November 16, 2015 before me, J▇▇▇ ▇▇▇▇▇▇▇▇▇, Notary Public (insert name and title of the officer) personally appeared E▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature /s/ J▇▇▇ ▇▇▇▇▇▇▇▇▇___________________________________(Seal) Previous versions obsolete Page 29 of 32 form HUD-92466-ORCF (06/2014)

Nonrecourse Debt. The following individuals or entities identified in the Firm Commitment: Summit Healthcare REITJ▇▇▇▇ ▇. ▇▇▇▇▇, Inc.Individually and Riverglen House of Littleton, L.L.C. as identified in the Firm Commitment does do not assume personal liability for payments due under the Note and the Borrower’s 's Security Instrument, or for the payments to the Reserve for Replacement, or for matters not under its their control, provided that each said individual such individuals or entity entities shall remain personally liable under this Agreement only with respect to the matters hereinafter stated; namely: (a) for funds or property of the Project coming into its hands which, by the provisions of this Agreement, it is not entitled to retain; (b) for authorizing the conveyance, assignment, transfer, pledge, encumbrance, or other disposition of the Mortgaged Property or any interest therein in violation of this Agreement without the prior written approval of HUD; and (c) for its own acts and deeds, or acts and deeds of others, which it has authorized in violation of the provisions of this Section. The obligations of the individuals or entities listed in this Section shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, any termination of this Agreement, and any release of record of the Borrower’s 's Security Instrument. Previous versions obsolete Page 28 27 of 32 35 form HUD-92466-ORCF 0RCF (06/2014Rev. 03/13) a Maryland corporation By: /s/ EJ▇▇▇▇ ▇▇▇▇▇, Individually STATE OF NEW HAMPSHIRE ) ) SS: COUNTY OF ) On this 19th day of March, 2014, before me, the undersigned notary public, personally appeared J▇▇▇▇ ▇. ▇▇▇▇▇, proved to me through satisfactory evidence of identification, which was ¨ photographic identification with signature issued by a federal or state governmental agency, namely_____________,¨ oath or affirmation of a credible witness, x personal knowledge of the undersigned, to be the person whose name is signed on the preceding or attached document(s), and acknowledged to me that he signed it voluntarily for its stated purpose. /s/ D▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Notary Public My Commission Expires: 5.20.2014 By: /s/ J▇▇▇▇ Name: E▇. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Title: CFO/Treasurer A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange) On November 16, 2015 before me, J▇▇▇ ▇▇▇▇▇▇▇▇▇, Notary Public (insert name and title of the officer) personally appeared E▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature /s/ J▇▇▇ ▇▇▇▇▇▇▇▇▇___________________________________(Seal) Previous versions obsolete Page 29 of 32 form HUD-92466-ORCF (06/2014)

Nonrecourse Debt. The following individuals or entities identified in the Firm Commitment: Summit Healthcare REIT, Inc., Inc. as identified in the Firm Commitment does not assume personal liability for payments due under the Note and the Borrower’s Security Instrument, or for the payments to the Reserve for Replacement, or for matters not under its control, provided that each said individual or entity shall remain personally liable under this Agreement only with respect to the matters hereinafter stated; namely: (a) for funds or property of the Project coming into its hands which, by the provisions of this Agreement, it is not entitled to retain; (b) for authorizing the conveyance, assignment, transfer, pledge, encumbrance, or other disposition of the Mortgaged Property or any interest therein in violation of this Agreement without the prior written approval of HUD; and (c) for its own acts and deeds, or acts and deeds of others, which it has authorized in violation of the provisions of this Section. The obligations of the individuals or entities listed in this Section shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, any termination of this Agreement, and any release of record of the Borrower’s Security Instrument. Previous versions obsolete Page 28 27 of 32 35 form HUD-92466-ORCF (06/2014) a Maryland corporation By: /s/ E▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ Name: E▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ Title: CFO/Chief Financial Officer and Treasurer A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of Orange_____________________ ) On November 16September __, 2015 2018, before me, J▇▇▇ ▇▇▇▇▇▇▇▇▇____________________________, a Notary Public (insert name and title of the officer) Public, personally appeared E▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, who proved to me on the basis of satisfactory evidence to be the person(s) person whose name(s) is/are name is subscribed to the within instrument and acknowledged to me that he/she/they she executed the same in his/her/their her authorized capacity(ies)capacities, and that by his/her/their signature(s) her signature on the instrument the person(s)person, or the entity upon behalf of which the person(s) person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature /s/ J▇▇▇ ▇▇▇▇▇▇▇▇▇___________________________________(Seal) Previous versions obsolete Page 29 28 of 32 35 form HUD-92466-ORCF (06/2014)

Nonrecourse Debt. The following individuals or entities identified in the Firm Commitment: Summit Healthcare REIT, Inc., as identified in the Firm Commitment does not assume personal liability for payments due under the Note and the Borrower’s Security Instrument, or for the payments to the Reserve for Replacement, or for matters not under its control, provided that each said individual or entity shall remain personally liable under this Agreement only with respect to the matters hereinafter stated; namely: (a) for funds or property of the Project coming into its hands which, by the provisions of this Agreement, it is not entitled to retain; (b) for authorizing the conveyance, assignment, transfer, pledge, encumbrance, or other disposition of the Mortgaged Property or any interest therein in violation of this Agreement without the prior written approval of HUD; and (c) for its own acts and deeds, or acts and deeds of others, which it has authorized in violation of the provisions of this Section. The obligations of the individuals or entities listed in this Section shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, any termination of this Agreement, and any release of record of the Borrower’s Security Instrument. Previous versions obsolete Page 28 29 of 32 33 form HUD-92466-ORCF (06/2014) a Maryland corporation By: /s/ E▇▇▇▇▇K▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Name: E▇▇▇▇▇K▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Title: CFOPresident/Treasurer A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. COO State of California County of Orange____________) On November 16, 2015 _______________________ before me, J▇▇▇ ▇▇▇▇▇▇▇▇▇, Notary Public __________________ (insert name and title of the officer) personally appeared E▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature /s/ J▇▇▇ ▇▇▇▇▇▇▇▇▇____________________________________(Seal) Previous versions obsolete Page 29 30 of 32 33 form HUD-92466-ORCF (06/2014)

Nonrecourse Debt. The following individuals or entities identified in the Firm Commitment: Summit Healthcare REITADCARE HEALTH SYSTEMS, Inc.INC., a Georgia corporation, as identified in the Firm Commitment does not assume personal liability for payments due under the Note and the Borrower’s Security Instrument, or for the payments to the Reserve for Replacement, or for matters not under its control, provided that each said individual or entity shall remain personally liable under this Agreement only with respect to the matters hereinafter stated; namely: (a) for funds or property of the Project coming into its hands which, by the provisions of this Agreement, it is not entitled to retain; (b) for authorizing the conveyance, assignment, transfer, pledge, encumbrance, or other disposition of the Mortgaged Property or any interest therein in violation of this Agreement without the prior written approval of HUD; and (c) for its own acts and deeds, or acts and deeds of others, which it has authorized in violation of the provisions of this Section. The obligations of the individuals or entities listed in this Section shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, any termination of this Agreement, and any release of record of the Borrower’s Security Instrument. Previous versions obsolete Page 28 of 32 form HUD-92466-ORCF (06/2014) a Maryland Georgia corporation By: /s/ E▇▇▇▇▇▇▇▇ ▇▇▇. ▇▇▇▇▇▇▇ Name: E▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇Its: Chief Financial Officer STATE OF GEORGIA ) ) ss: COUNTY OF ▇▇▇▇▇▇ Title: CFO/Treasurer A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange) On November 16this 12th day of SEPTEMBER, 2015 2014, before me, Jthe undersigned, a Notary Public in and for said State, personally appeared ▇▇▇▇▇▇ ▇▇. ▇▇▇▇▇▇▇, Notary Public (insert name and title of the officer) personally appeared E▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, who known to me or proved to me on the basis of satisfactory evidence to be the person(s) individual whose name(s) is/are name is subscribed to the within instrument and acknowledged to me that he/she/they she executed the same in his/her/their authorized capacity(ies)her capacity, and that by his/her/their signature(s) her signature on the instrument instrument, the person(s)individual, or the entity person upon behalf of which the person(s) individual acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature [SEAL] /s/ J▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇___________________________________(Seal) ▇ Notary Public My Commission Expires: {1020/124/00093614.2} Previous versions obsolete Page 29 of 32 36 form HUD-92466-ORCF (Rev. 06/2014)