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 27 of 35 form HUD-92466-ORCF (06/2014) SUMMIT HEALTHCARE REIT, INC. a Maryland corporation By: /s/ Exxxxxxxx X. Xxxxxxxxxx Exxxxxxxx X. Xxxxxxxxxx Chief Financial Officer and Treasurer ACKNOWLEDGMENT 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 _____________________ ) On September __, 2018, before me, ____________________________, a Notary Public, personally appeared Exxxxxxxx X. Xxxxxxxxxx, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacities, and that by her signature on the instrument the person, or the entity upon behalf of which the 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 Previous versions obsolete Page 28 of 35 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 27 of 35 form HUD-92466-ORCF (06/2014) SUMMIT HEALTHCARE REITADCARE HEALTH SYSTEMS, INC. ., a Maryland Georgia corporation By: /s/ Exxxxxxxx Xxxxxx X. Xxxxxxxxxx Exxxxxxxx Xxxxxxx Name: Xxxxxx X. Xxxxxxxxxx Xxxxxxx Its: Chief Financial Officer and Treasurer ACKNOWLEDGMENT 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 STATE OF GEORGIA ) County of _____________________ ) ss: COUNTY OF XXXXXX ) On September __this 12th day of SEPTEMBER, 20182014, before me, ____________________________the undersigned, a Notary PublicPublic in and for said State, personally appeared Exxxxxxxx XXXXXX X. XxxxxxxxxxXXXXXXX, who personally known to me or proved to me on the basis of satisfactory evidence to be the person individual whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacitiescapacity, and that by his/her signature on the instrument instrument, the personindividual, or the entity person upon behalf of which the person 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/ Xxxxx X. Xxxxx Notary Public My Commission Expires: {1020/124/00093614.2} Previous versions obsolete Page 28 29 of 35 36 form HUD-92466-ORCF (Rev. 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 27 29 of 35 33 form HUD-92466-ORCF (06/2014) SUMMIT HEALTHCARE REIT, INC. ., a Maryland corporation By: /s/ Exxxxxxxx X. Xxxxxxxxxx Exxxxxxxx X. Xxxxxxxxxx Chief Financial Officer and Treasurer Kxxx Xxxxxxx Name: Kxxx Xxxxxxx Title: President/COO ACKNOWLEDGMENT 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 ____________) On _______________________ ) On September __, 2018, before me, __________________ (insert name and title of the officer) personally appeared ______________________, a Notary Public, personally appeared Exxxxxxxx X. Xxxxxxxxxx, who proved to me on the basis of satisfactory evidence to be the person person(s) whose name is name(s) is/are subscribed to the within instrument and acknowledged to me that she he/she/they executed the same in her his/her/their authorized capacitiescapacity(ies), and that by her signature his/her/their signature(s) on the instrument the personperson(s), or the entity upon behalf of which the person 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 ____________________________________(Seal) [continued on following page] Previous versions obsolete Page 28 30 of 35 33 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 27 28 of 35 32 form HUD-92466-ORCF (06/2014) SUMMIT HEALTHCARE REIT, INC. ., a Maryland corporation By: /s/ Exxxxxxxx X. Xxxxxxxxxx Name: Exxxxxxxx X. Xxxxxxxxxx Chief Financial Officer and Title: CFO/Treasurer ACKNOWLEDGMENT 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 September __November 16, 2018, 2015 before me, ____________________________Jxxx Xxxxxxxxx, a Notary Public, Public (insert name and title of the officer) personally appeared Exxxxxxxx X. Xxxxxxxxxx, who proved to me on the basis of satisfactory evidence to be the person person(s) whose name is name(s) is/are subscribed to the within instrument and acknowledged to me that she he/she/they executed the same in her his/her/their authorized capacitiescapacity(ies), and that by her signature his/her/their signature(s) on the instrument the personperson(s), or the entity upon behalf of which the person 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/ Jxxx Xxxxxxxxx___________________________________(Seal) [continued on following page] Previous versions obsolete Page 28 29 of 35 32 form HUD-92466-ORCF (06/2014)

Nonrecourse Debt. The following individuals or entities identified in individuals/entities, [Insert names and make sure they sign the Firm Commitment: Summit Healthcare REIT, Inc. Borrower Regulatory Agreement] as identified in the “Firm Commitment does Commitment” (which means the commitment for insurance of advances or commitment for insurance upon completion issued to Lender by HUD under which the debt evidenced by the Note is to be insured pursuant to a Section of the Act, dated ): do not assume personal liability for payments due under the Note and the BorrowerXxxxxxxx’s Security Instrument, or for the payments to the Reserve for ReplacementReplacements, or for matters not under its their control, provided that each said individual or entity individuals/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, relinquishment, 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 Sectionsection. The obligations of the individuals or individuals/entities listed in this Section shall paragraph shall, subject to applicable law of the jurisdiction governing the Security Instrument, 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 this Borrower’s Security Instrument. Previous versions obsolete Page 27 of 35 form HUD-92466-ORCF (06/2014) SUMMIT HEALTHCARE REIT, INC. The Lender is a Maryland corporation By: /s/ Exxxxxxxx X. Xxxxxxxxxx Exxxxxxxx X. Xxxxxxxxxx Chief Financial Officer and Treasurer ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity third party beneficiary 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 _____________________ ) On September __, 2018, before me, ____________________________, a Notary Public, personally appeared Exxxxxxxx X. Xxxxxxxxxx, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacities, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws personal liability obligations of the State of California that said individuals/entities under this Section [38] so long as the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Previous versions obsolete Page 28 of 35 form HUD-92466-ORCF (06/2014)Lender has not assigned

Nonrecourse Debt. The following individuals or entities identified in the Firm Commitment: Summit Healthcare REITJxxxx X. Xxxxx, 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 27 of 35 form HUD-92466-ORCF 0RCF (06/2014Rev. 03/13) SUMMIT HEALTHCARE REIT/s/ Jxxxx Xxxxx Jxxxx Xxxxx, INC. a Maryland corporation ByIndividually STATE OF NEW HAMPSHIRE ) ) SS: /s/ Exxxxxxxx X. Xxxxxxxxxx Exxxxxxxx X. Xxxxxxxxxx Chief Financial Officer and Treasurer ACKNOWLEDGMENT 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 _____________________ COUNTY OF ) On September __this 19th day of March, 20182014, before me, ____________________________, a Notary Publicthe undersigned notary public, personally appeared Exxxxxxxx Jxxxx X. XxxxxxxxxxXxxxx, who proved to me on the basis of 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 subscribed to signed on the within instrument preceding or attached document(s), and acknowledged to me that she executed the same in her authorized capacitieshe signed it voluntarily for its stated purpose. /s/ Dxxxxxx Xxxxxxxxx Notary Public My Commission Expires: 5.20.2014 Riverglen House of Littleton, and that by her signature on the instrument the personL.L.C. DXXXXXX XXXXXXXXX NOTARY PUBLIC - NEW HAMPSHIRE My Commission Expires May 20, or the entity upon behalf of which the person acted2014 By: /s/ Jxxxx X. Xxxxx Jxxxx X. Xxxxx, 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 Previous versions obsolete Page 28 of 35 form HUD-92466-ORCF (06/2014)Managing Member