Exhibit 10.51

American Retirement Corporation (the “Company”)

Summary of Director and Executive Officer Compensation

I.              DIRECTOR COMPENSATION.   Directors who are employees of, or paid
consultants to, the Company do not receive additional compensation for serving
as directors of the Company. The following table sets forth current rates of
cash compensation for the Company’s non-employee directors.

 

Annual Retainer

 

$16,000 (payable in quarterly installments)

     

Board Meeting Attendance Fee

 

$1,000

     

Lead Director, Audit Committee
Chair and Compensation
Committee Chair Annual Retainer

 

$4,000

     

Audit Committee Member Meeting Attendance Fee

 

$1,000

     

Committee Member Meeting Attendance
Fee (all other committees other
than Audit Committee)

 

$500

 

                In addition to cash compensation, non-employee directors receive
options to purchase shares of common stock pursuant to the Company’s 1997 Stock
Incentive Plan. On the date of each annual meeting of the shareholders of the
Company, each non-employee director who will continue as a director following
such meeting automatically receives an option to purchase 3,000 shares of common
stock. Such options vest with respect to all 3,000 shares on the date of the
next annual meeting of shareholders. All options automatically granted to a
non-employee director enable the optionees to purchase shares of common stock at
the fair market value of the common stock on the date of grant. The terms of the
options are ten years from the date of grant. The exercise price may be paid in
cash, shares of common stock previously owned by the director, or a combination
thereof.

II.            EXECUTIVE OFFICER COMPENSATION.   The following table sets forth
the current base salaries provided to the Company’s Chief Executive Officer and
four most highly compensated executive officers.

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Executive Officer

 

Current Salary

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W. E. Sheriff

 

$ 363,000

Gregory B. Richard

 

$ 230,000

H. Todd Kaestner

 

$ 230,000

George T. Hicks

 

$ 230,000

Bryan D. Richardson

 

$ 225,000

 

                In addition to their base salaries, the Company’s Chief
Executive Officer and four most highly compensated executive officers are also
eligible to:

 

•
receive cash bonuses under the Company’s Officer’s Incentive Compensation Plan,
a copy of which has been filed as Exhibit 10.8 to the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2004;
  •
participate in the Company’s long-term incentive program, which currently
involves the award of restricted stock and stock options pursuant to the
Company’s 1997 Stock Incentive Plan;
  •
participate in the Company’s Deferred Compensation Plan and/or Supplemental
Executive Retirement Plan;
  • participate in the Company’s Associate Stock Purchase Plan; and     •
participate in the Company’s broad-based benefit programs generally available to
its salaried employees, including health, disability and life insurance programs
and 401(k) Plan.

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