X0304 5 2011-12-31 0 0 0 0001004724 ADCARE HEALTH SYSTEMS INC ADK 0001202996 GENTRY BOYD P ONE RAVINIA DRIVE STE 1500 ATLANTA GA 30346 1 1 0 0 CEO Common Stock 45088 D Warrants 3.94 2011-01-10 2021-01-10 Common Stock 262500 175000 D The original exercise price of $4.13 has been adjusted by a 5% stock dividend granted by the company on September 30, 2011. The warrants vest in three segments. One-third vested on grant January 10, 2011, one-third on January 10, 2012 and the remain one-third on January 10, 2013. They are exercisable as they vest. The original grant was 250,000 warrants which were subject to anti-dilution. The number has been adjusted based on the 5% stock dividend granted by the Company on September 30, 2011. Due to the vesting schedule, not all warrants are beneficially owned as of December 31, 2011. Carol Groeber for Boyd Gentry, by power of attorney 2012-02-14