AdCare Health Systems, Inc. Two Buckhead Plaza

Exhibit 10.102

AdCare Health Systems, Inc.

Two Buckhead Plaza

0000 Xxxxxxxxx Xxxx XX, Xxxxx 000

Xxxxxxx, Xxxxxxx 00000

July 17, 2015

Xx. Xxxxxx Xxxxx

President / CFO

Highlands Arkansas Holdings, LLC

0 Xxxxxx Xxxx Xxxxxx, Xxxxx 000

Xxxxxxxxxx, XX 00000

Re: Facility Sublease Agreements / 9 Arkansas Facilities

Dear Xxxxxx:

This letter will confirm our agreement with respect to the equitable adjustments contemplated in the nine sublease agreements for Arkansas facilities (collectively, the “Leases”) leased by subsidiaries of AdCare Health Systems, Inc. (collectively, “ADK”) to affiliates of Highlands Arkansas Holdings, LLC (collectively, “Highlands Arkansas”), relating to a one-time equitable adjustment to Base Rent relating to projected professional liability and general liability insurance costs and projected costs.

Specifically, the parties expressly agree that such equitable adjustment shall total $360,000 cumulatively for all 9 Leases, to be apportioned by the parties pursuant to mutually acceptable lease amendments finalized on or before July 24, 2015; provided, however, that there shall be no such equitable adjustment with respect to the River Valley Facility because the Base Rent under such Facility Lease reflects an appropriate equitable adjustment. The parties further agree that as consideration for this one-time equitable adjustment, that the Base Rent under all of the Leases after the initial Lease Year shall be increased during each subsequent Lease Year by three percent (3%), and that the amendments to Leases shall reflect this increased Base Rent escalation. Finally, the parties acknowledge and agree that the Leases shall also be amended to delete to paragraph at the end of Section 7.7 to each Lease relating to the Reimbursement Threshold.

			Sincerely,
			ADCARE HEALTH SYSTEMS, INC.
			/s/ Xxxxxxx XxXxxxx, III
			Xxxxxxx XxXxxxx, III, Chairman and
			Chief Executive Officer
ACKNOWLEDGED AND AGREED TO:
HIGHLANDS ARKANSAS HOLDINGS, LLC
By:	/s/ R. Xxxxx Xxxxxxx	(Seal)
	Managing Member
Date:	7/17/2015

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