Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On Friday, August 15, 2008, the Company's Board of Directors approved new employment agreements to replace the previous employment agreements for David A. Tenwick, Chairman and Gary L. Wade, Chief Executive Officer, Chief Operating Officer and President. The new employment agreements replace prior agreements that expired on April 1, 2008.

In addition, a new employment agreement was approved by the Board for J. Scott Cunningham, Chief Financial Officer containing substantially the same terms and conditions.

These agreements were signed on September 3, 2008 and made effective September 1, 2008. All three employment agreements are included as exhibits to this form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits Exhibit Number Description of Exhibit 99.1 Employment Agreement between AdCare Health Systems, Inc. and David A. Tenwick 99.2 Employment Agreement between AdCare Health Systems, Inc. and Gary L. Wade 99.3 Employment Agreement between AdCare Health Systems, Inc. and J. Scott Cunningham

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