Document:

Exhibit 10.1

 

SECOND AMENDMENT TO LIMITED LIABILITY COMPANY
AGREEMENT

 

OF

 

SUMMIT UNION LIFE HOLDINGS, LLC

 

This SECOND AMENDMENT TO LIMITED LIABILITY
COMPANY AGREEMENT (the “Second Amendment”) is entered into as of the 21st day of December, 2015 by and between Summit
Healthcare Operating Partnership, a Delaware limited liability company (“Summit”), and Best Years LLC, a Delaware limited
liability company (“Union Life” and, collectively with Summit, the “Members”).

 

RECITALS

 

A.           Summit and Union Life entered into that certain Limited
Liability Company Agreement of Summit Union Life Holdings, LLC, dated as of April 7, 2015 and amended by a First Amendment to Limited
Liability Company Agreement, dated as of October 1, 2015 (as amended, the “Agreement”). Summit Union Life Holdings,
LLC (the “Company”) is a Delaware limited liability company formed for the purpose of acquiring, owning, improving,
leasing and operating through one or more Subsidiaries skilled nursing, assisted living, memory care, senior independent living
and other similar Facilities in the United States. All capitalized terms not otherwise defined herein shall have the meanings set
forth in the Agreement.

 

B.           Pursuant to the terms of the Agreement, the Company
acquired, as Tranche 1, two skilled nursing Facilities in Colorado, one assisted living Facility in Virginia and two skilled nursing/assisted
living Facilities and one independent living Facility in Oregon, each through a Subsidiary formed for the purpose of acquiring
and owning such Facility.

 

C.            Pursuant to the First Amendment to Limited Liability
Company Agreement, the Company approved the acquisition of four skilled nursing Facilities in Texas and one assisted living Facility
in New Hampshire (“Riverglen Facility”), each through a Subsidiary formed to acquire and own such Facility.

 

D.           The Members now desire to acquire four additional
assisted living and memory care Facilities located in Wisconsin (“Cottages Portfolio”), as more particularly set forth
below.

 

    -1- 

     

    

 

AGREEMENT

 

1.           Acquisition of Tranche 3 Facilities. Schedule
1.1 of the Agreement is hereby amended to add each of the Facilities listed on the Schedule 1.1(b) attached to this Second Amendment
(the “Tranche 3 Facilities”), and the Members hereby approve the acquisition of each Tranche 3 Facility through the
execution of an Assignment and Assumption of Limited Liability Company Membership Interests between Company and Summit Healthcare
Operating Partnership, a Delaware limited partnership, dated of even date herewith, for the Purchase Price set forth on Schedule
1.1(a) for such Facility and otherwise on the terms set forth in the purchase agreement dated August 25, 2015 for the Cottages
Portfolio and the purchase agreement dated April 29, 2015 for the Riverglen Facility, each entered into by Manager.

 

2.           Additional Capital Contribution. Prior to the
closing for the acquisition of the Tranche 3 Facilities, or any portion thereof, Manager shall make a Capital Call pursuant to
Section 6.2(a) of the Agreement in the amount required to close the applicable escrow and pay the third party costs incurred in
connection with the acquisition, as set forth on the attached executed Schedules 2.7 for each of the Cottages Portfolio and the
Riverglen Facility. Each Member shall fund its pro rata share, based on its respective Percentage Interest, of the amount specified
in the Capital Call Notice within 5 Business days following the date of delivery of the Capital Call Notice.

 

3.           This Second Amendment may be executed in two or more
counterparts, each of which will constitute an original and all of which, when taken together, will constitute one Second Amendment.
The submission of a signature page transmitted by facsimile (or similar electronic transmission facility) will be considered an
“original” signature page for purposes of this Second Amendment so long as the original signature page is thereafter
transmitted by mail or by other delivery service and the original signature page is substituted for the facsimile signature page
in the original and duplicate originals of this Second Amendment.

 

4.           Except as expressly amended herein, the Agreement
shall remain in full force and effect as originally written.

 

    -2- 

     

    

 

IN WITNESS WHEREOF, the undersigned have entered into this Second
Amendment as of the day and year first above written.

 

	 	SUMMIT HEALTHCARE OPERATING PARTNERSHIP,
	 	a Delaware limited partnership
	 	 	 
	 	By: 	Summit Healthcare REIT, Inc., a Maryland corporation,
	 	 	General Partner
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	/s/ Kent Eikanas	 
	 	 	 	Kent Eikanas, President	 
	 	 	 	 	 
	 	 	 	 	 
	 	BEST YEARS LLC,	 
	 	a Delaware limited liability company	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Josh Johnson	 
	 	 	Josh Johnson, Director	 
	 	 	 	 
	The undersigned Manager hereby agrees to
be bound by the terms of this Second Amendment.

	 	 	 	 
	 	SUMMIT HEALTHCARE REIT, INC.,	 
	 	a Maryland corporation	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Kent Eikanas	 
	 	 	Kent Eikanas, President	 

 

    -3- 

     

    

 

Schedule 1.1(b)

 

Cottages Portfolio Facilities

 

	Name of Facility	Street Address	Type of Facility and Licensed Capacity	Purchase Price
	Carolina Manor	

        3201 West 1st Avenue

        Appleton, WI 54915
	
        Assisted Living Facility

        45 Units / 45 Beds
	$7,200,000
	Carrington Manor	
        2626 Finger Road

        Green Bay, WI 54302
	
        Assisted Living Facility

        20 Units / 20 Beds
	$2,800,000
	Marla Vista Manor	
        647 Highway 190 West

        Woodville, TX  75979
	
        Assisted Living Facility

        40 Units / 40 Beds
	$5,750,000
	Marla Vista Gardens	
        2711 Pine Tree Road

        Longview, TX  75604
	
        Assisted Living Facility

        20 Units / 20 Beds
	$2,600,000

 

    -4- 

     

    

 

Schedule 2.7

 

Intentionally omitted

 

    -5-Exhibit 10.2

 

ASSIGNMENT
AND ASSUMPTION OF

LIMITED LIABILITY COMPANY
MEMBERSHIP INTERESTS

 

This Assignment and Assumption
of Limited Liability Company Membership Interests (“Agreement”) is dated December 24, 2015 (the “Effective
Date”) and made by SUMMIT HEALTHCARE OPERATING PARTNERSHIP, a Delaware limited partnership (“Assignor”)
and SUMMIT UNION LIFE HOLDINGS, LLC, a Delaware limited liability company (“Assignee”).

 

The Assignor is the sole
Member of Summit Appleton, LLC, Summit Carrington Manor, LLC, Summit Marla Vista Manor, LLC, and Summit Marla Vista Gardens, LLC,
each a Delaware limited liability company (each, a “Company” and, collectively, the “Companies”),
holding one hundred percent (100%) of the membership interests in each Company ( the “Membership Interests”).
The Assignor wishes to assign the Membership Interests to the Assignee, and the Assignee wishes to assume the Membership Interests.
The Assignor and the Assignee may be referred to together as “Parties,” with each individually as “Party.”

 

The Parties therefore agree as follows:

 

1.           Assignment and Assumption
of the Membership Interests. The Assignor hereby assigns, transfers, delivers, and conveys to the Assignee the Membership Interests.

 

2.            Acceptance of Assignment.

 

2.1           The Assignee hereby
accepts and assumes the transfer, conveyance, and assignment of the Membership Interests, and the Assignor's obligations and duties
relating to the Membership Interests, with respect to each Company under the Certificate of Formation and Limited Liability Company
Agreement of each Company, and the Limited Liability Company Act of Delaware.

 

2.2           The Assignee hereby
agrees to be substituted as a Member of each Company in the Assignor's name, place, and stead as to the Membership Interests, and
as such to succeed to any and all of the Assignor's right, title, and interest whatsoever concerning the Membership Interests on
and after the Effective Date.

 

2.3           The Assignee hereby
assumes all of the duties, responsibilities, rights, and covenants to discharge all obligations of the Assignor in the Assignor's
capacity as Member of each Company relating to the Membership Interests so assigned arising from and after the Effective Date (but
assumes no liability for any of the duties, responsibilities, obligations, and liabilities of Assignor under relating to the Membership
Interests arising before the Effective Date).

 

2.4           Assignee hereby
agrees to be bound by the terms and conditions of each Company's Limited Liability Company Agreement.

 

3.            Representations and Warranties
of Assignor Concerning the Membership Interests. The Assignor represents and warrants to the Assignee each of the
following:

 

3.1           The Assignor is the
sole and lawful owner of the Membership Interests assigned under this Agreement.

 

    	 	 	 

     

    

 

3.2           The Assignor has
the requisite power and authority to execute, deliver, and perform this Agreement.

 

4.            Indemnity.

 

4.1           By Assignee. Assignee,
shall indemnify, defend and hold harmless Assignor from and against all losses, claims, expenses, damages or liabilities of any
kind, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with the Membership Interests
on and after the Effective Date.

 

4.2           By Assignor. Assignor
shall indemnify, defend and hold harmless Assignee from and against all losses, claims, expenses, damages or liabilities of any
kind, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with the Membership Interests
prior to the Effective Date.

 

5.           Entire Agreement; Amendment.
This Agreement embodies and sets forth the entire agreement and understanding between the Parties relating to the subject matter
hereof. This Agreement merges and supersedes any and all prior discussions, agreements, understandings, representations, conditions,
warranties, covenants, and all other communications between them on or relating to the subject matter of this Agreement. Any amendment,
modification, addendum, or revision of this Agreement is valid only if in writing and signed by the Party to be bound, in which
event there need be no legal consideration therefor.

 

 6.            Governing Law. The laws of the State of Delaware govern this Agreement.

 

7.           Counterparts; Electronic
Signatures. This Agreement may be executed in multiple counterparts, each of which is to be deemed an original and all of which
together are to be deemed one and the same document. The exchange of copies of this Agreement and of signature pages by electronic
transmission constitutes effective signing and delivery of this Agreement to the Parties, which may be used instead of the original
Agreement for all purposes.

 

[Signatures on Next
Page]

 

    	 	 	 

     

    

 

The Parties are signing this Agreement as of the Effective Date.

 

	ASSIGNOR:	 	ASSIGNEE:	 
	 	 	 	 	 	 	 	 
	SUMMIT HEALTHCARE OPERATING PARTNERSHIP, a
Delaware limited partnership	 	SUMMIT UNION LIFE HOLDINGS, LLC, a Delaware
limited liability company	 
	 	 	 	 	 	 	 	 
	By:	SUMMIT HEALTHCARE REIT, INC., a Maryland
corporation	 	By:	SUMMIT HEALTHCARE REIT, INC., a Maryland
corporation	 
	Its:	 General Partner	 	Its:	 Manager	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	By:	/s/ Kent Eikanas	 	 	By:	/s/ Kent Eikanas	 
	 	 	Kent Eikanas	 	 	 	Kent Eikanas	 
	 	 	President	 	 	 	President

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