IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

VENTAS REALTY, LIMITED ) 

PARTNERSHIP, ) 

) 

Plaintiff, ) 

) No. 12-CV-3107 

) 

V. ) Judge Ronald A. Guzman 

) 

) Magistrate Judge Sidney I Schenkier 

ALC CVMA, LLC, ALC GGMG, LLC ) 

ALC HTIF, LLC, ALC PEDG, LLC, ALC ) 

TPCG, LLC, ALC TISSC, LLC, ALC ) 

TSKG, LLC AND ALC WRWG, LLC, and ) 

ASSISTED LIVING CONCEPTS, INC. ) 

Defendants. 

DEFENDANTS ANSWERS AND RESPONSES TO PLAINTIFF'S FIRST SET OF 

INTERROGATORIES AND REQUESTS FOR THE PRODUCTION OF DOCUMENTS 

John A. Rothstein 

N. Dist. III. Bar 1004356 

QUARLES & BRADY LLP 

411 E. Wisconsin Ave. 

Milwaukee, WI 53202 

414-277-5351 

John.Rothstein@quarles.com 

Leonard S. Shifflett 

ARDC # 2587432 

QUARLES & BRADY LLP 

300 N. LaSalle St. Suite 4000 

Chicago, IL 60654-3406 

312-715-5000 

Leonard.Schifflett@quarles.com 

Attorneys for all Defendants 

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Defendant Assisted Living Concepts, Inc. ("ALC"), on its behalf and on behalf of all 

other defendants, responds to Plaintiff Ventas Realty Limited Partnership's ("Ventas") First Set 

of Requests for Production of Documents and First Set of Interrogatories ("Requests") as 

follows: 

GENERAL OBJECTIONS, RESERVATIONS, AND COMMENTS 

In responding to these Requests, ALC makes the following objections, reservations, and 

comments, each of which is incorporated into each of ALC's responses below regardless of 

whether they are specifically restated therein. 

1. ALC objects to the Requests to the extent they purport to impose obligations 

upon ALC that are inconsistent with or in addition to those imposed by the Federal Rules of 

Civil Procedure ("FRCP") or any other applicable court order, statute, rule, or law. 

2. ALC's investigation of the facts and discovery of information relating to the 

claims at issue in this action are continuing. ALC's answers and responses to these Requests are 

based upon the information and documents currently available to it, and ALC reserves the right 

to supplement its answers and responses at a later date. 

INTERROGATORIES 

INTERROGATORY NO. 1: 

State the "possible irregularities" ALC is investigating in connection with the Amended 

and Restated Master Lease Agreement, as stated in the First Form 8-K, and, state all facts and 

identifi, all documents, communications, and persons with knowledge, relating to such 

irregularities. 

ANSWER: ALC incorporates each of the General Objections set forth above, as if set 

forth in their entirety herein. The ALC Audit Committee is conducting a confidential 

investigation. The Audit Committee has not waived any applicable privilege or protection 

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relating to its investigation, and the information and documents sought by the request are 

protected from disclosure by the attorney-client privilege, the work product-doctrine, and the 

critical self-evaluation privilege. The information and documents sought by the request are also 

protected from disclosure under the Sarbanes-Oxley Act, which obligates the Audit Committee 

to respect the confidentiality of certain types of communications it receives in the course of an 

investigation. 

ALC further objects on the ground that the request is not predicated on the allegations of 

the Amended Complaint. The request seeks information and documents relating to the 

confidential and privileged investigation being conducted by the ALC Audit Committee. Such a 

request is overbroad and unduly burdensome, and is not reasonably calculated to lead to the 

discovery of admissible evidence. 

Subject to the foregoing, and without waiving any applicable privilege or protection, 

ALC voluntarily states that the investigation conducted by the Audit Committee does not relate 

in any respect to the health or safety of any of the residents at any of the facilities leased from 

Ventas Realty, Limited Partnership. 

INTERROGATORY NO. 2: 

State the subject matter of the "ongoing internal investigation" referenced in the Second 

Form 8-K, and, state all facts and identibi all documents, communications, and persons with 

knowledge, relating to the subject matter of the investigation. 

ANSWER: ALC incorporates each of the General Objections set forth above, as if set 

forth in their entirety herein. The ALC Audit Committee is conducting a confidential 

investigation. The Audit Committee has not waived any applicable privilege or protection 

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relating to its investigation, and the information and documents sought by the request are 

protected from disclosure by the attorney-client privilege, the work product-doctrine, and the 

critical self-evaluation privilege. The information and documents sought by the request are also 

protected from disclosure under the Sarbanes-Oxley Act, which obligates the Audit Committee 

to respect the confidentiality of certain types of communications it receives in the course of an 

investigation. 

ALC further objects on the ground that the request is not predicated on the allegations of 

the Amended Complaint. The request seeks information and documents relating to the 

confidential and privileged investigation being conducted by the ALC Audit Committee. Such a 

request is overbroad and unduly burdensome, and is not reasonably calculated to lead to the 

discovery of admissible evidence. 

Subject to the foregoing, and without waiving any applicable privilege or protection, 

ALC voluntarily states that the investigation conducted by the Audit Committee does not relate 

in any respect to the health or safety of any of the residents at any of the facilities leased from 

Ventas Realty, Limited Partnership. 

REQUESTS FOR PRODUCTION 

REQUEST NO. 1: 

All documents relating to the "possible irregularities" ALC is investigating in connection 

with the Amended and Restated Master Lease Agreement, as stated in the First Form 8-K 

ANSWER: ALC incorporates each of the General Objections set forth above, as if set 

forth in their entirety herein. The ALC Audit Committee is conducting a confidential 

investigation. The Audit Committee has not waived any applicable privilege or protection 

relating to its investigation, and the information and documents sought by the request are 

protected from disclosure by the attorney-client privilege, the work product-doctrine, and the 

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critical self-evaluation privilege. The information and documents sought by the request are also 

protected from disclosure under the Sarbanes-Oxley Act, which obligates the Audit Committee 

to respect the confidentiality of certain types of communications it receives in the course of an 

investigation. 

ALC further objects on the ground that the request is not predicated on the allegations of 

the Amended Complaint. The request seeks information and documents relating to the 

confidential and privileged investigation being conducted by the ALC Audit Committee. Such a 

request is overbroad and unduly burdensome, and is not reasonably calculated to lead to the 

discovery of admissible evidence. 

REQUEST NO. 2: 

All documents relating to the "ongoing internal investigation" disclosed on page 4 of the 

Second Form 8-K 

ANSWER: ALC incorporates each of the General Objections set forth above, as if set 

forth in their entirety herein. The ALC Audit Committee is conducting a confidential 

investigation. The Audit Committee has not waived any applicable privilege or protection 

relating to its investigation, and the information and documents sought by the request are 

protected from disclosure by the attorney-client privilege, the work product-doctrine, and the 

critical self-evaluation privilege. The information and documents sought by the request are also 

protected from disclosure under the Sarbanes-Oxley Act, which obligates the Audit Committee 

to respect the confidentiality of certain types of communications it receives in the course of an 

investigation. 

ALC further objects on the ground that the request is not predicated on the allegations of 

the Amended Complaint. The request seeks information and documents relating to the 

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confidential and privileged investigation being conducted by the ALC Audit Committee. Such a 

request is overbroad and unduly burdensome, and is not reasonably calculated to lead to the 

discovery of admissible evidence. 

REQUEST NO. 3: 

All documents identified by You in response to Plaintiffs' First Set of Interrogatories to 

Defendants. 

ANSWER: ALC incorporates each of the General Objections set forth above, as if set 

forth in their entirety herein. The ALC Audit Committee is conducting a confidential 

investigation. The Audit Committee has not waived any applicable privilege or protection 

relating to its investigation, and the information and documents sought by the request are 

protected from disclosure by the attorney-client privilege, the work product-doctrine, and the 

critical self-evaluation privilege. The information and documents sought by the request are also 

protected from disclosure under the Sarbanes-Oxley Act, which obligates the Audit Committee 

to respect the confidentiality of certain types of communications it receives in the course of an 

investigation. 

ALC further objects on the ground that the request is not predicated on the allegations of 

the Amended Complaint. The request seeks information and documents relating to the 

confidential and privileged investigation being conducted by the ALC Audit Committee. Such a 

request is overbroad and unduly burdensome, and is not reasonably calculated to lead to the 

discovery of admissible evidence. 

Dated this 31st day of May, 2012. 

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Jo . Rothstein 

N t. III. Bar 1004356 

ES & BRADY LLP 

E. Wisconsin Ave. 

Milwaukee, WI 53202 

414-277-5351 

John.Rothstein@quarles.com 

Leonard S Shiffiett 

ARDC # 2587432 

QUARLES & BRADY LLP 

300 N. LaSalle St. Suite 4000 

Chicago, IL 60654-3406 

312-715-5000 

Leonard.Schifflett@quarles.com 

Attorneys for all Defendants 

Declaration 

State of Wisconsin 

County of Waukesha 

Mary Zak-Kowalczyk depose and state under penalty of perjury: She is Vice President 

and Corporate Secretary of Assisted Living Concepts, Inc., one the named parties in the above 

action; that she has read the foregoing Answers to Interrogatories stated above and knows the 

contents thereof; that said answers were prepared with the assistance and advice of counsel; that 

the answers set herein, subject to inadvertent or undisclosed error, are based on, and therefore 

necessarily limited by, the records and information still in existence, presently recollected and 

thus far discovered in the course of preparation of these answers; consequently, this named party 

reserves the right to make any changes in the above interrogatory answers if it appears at any 

time that omissions or errors have been made, or that more accurate information is available; and 

that subject to the limitations set forth herein, said answers are true to the best of her knowledge, 

information and belief. 

Mary Zak-Kowalczyk 

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Objections by: 

John A. Rothstein 

N. Dist. Ill. Bar 1004356 

QUARLES & BRADY LLP 

411 E. Wisconsin Ave. 

Milwaukee, WI 53202 

414-277-5351 

John.Rothstein@quarles.com 

Leonard S. Shifflett 

ARDC # 2587432 

QUARLES & BRADY LLP 

300 N. LaSalle St. Suite 4000 

Chicago, IL 60654-3406 

312-715-5000 

Leonard.Schifflett@quarles.com 

Attorneys for all Defendants 

Declaration 

State of Wisconsin 

County of Waukesha 

Mary Zak-Kowalczyk depose and state under penalty of perjury: She is Vice President 

and Corporate Secretary of Assisted Living Concepts, Inc., one the named parties in the above 

action; that she has read the foregoing Answers to Interrogatories stated above and knows the 

contents thereof; that said answers were prepared with the assistance and advice of counsel; that 

the answers set herein, subject to inadvertent or undisclosed error, are based on, and therefore 

necessarily limited by, the records and information still in existence, presently recollected and 

thus far discovered in the course of preparation of these answers; consequently, this named party 

reserves the right to make any changes in the above interrogatory answers if it appears at any 

time that omissions or errors have been made, or that more accurate information is available; and 

that subject to the limitations set forth herein, said answers are true to the best of her knowledge, 

information and belief 

M‘ ajLt Za Ko czyk i*I /61-uetilto 

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