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                                                                    EXHIBIT 10.5

                            ATRIA COMMUNITIES, INC.
                      1996 STOCK OWNERSHIP INCENTIVE PLAN

ARTICLE 1.  PURPOSE

     The purpose of this 1996 Stock Ownership Incentive Plan ("Plan") is to
advance the interest of Atria Communities, Inc., a Delaware corporation
("Company"), and its subsidiaries by encouraging employees who will largely be
responsible for the long-term success and development of the Company to acquire
and retain an ownership interest in the Company.  The Plan is also intended to
provide flexibility to the Company in attracting and retaining such employees
and stimulating their efforts on behalf of the Company.

ARTICLE 2.  DEFINITIONS AND CONSTRUCTION

     2.1  Definitions.  As used in the Plan, terms defined parenthetically
immediately after their use shall have the respective meanings provided by such
definitions, and the terms set forth below shall have the following meanings (in
either case, such terms shall apply equally to both the singular and plural
forms of the terms defined):

     (a) "Award" shall mean, individually or collectively, a grant under the
Plan of Options, Restricted Stock or Performance Units.

     (b) "Board" shall mean the Board of Directors of the Company.

     (c) "Cause" shall mean, unless otherwise defined in an agreement evidencing
an Award, a felony conviction of a Participant or the failure of a Participant
to contest prosecution for a felony, or a Participant's willful misconduct or
dishonesty, any of which is determined by the Committee to be directly and
materially harmful to the business or reputation of the Company or its
Subsidiaries.

     (d) A "Change in Control" shall mean any of the following events:

          (1) An acquisition (other than directly from the Company) of any
voting securities of the Company ("Voting Securities") by any Person immediately
after which such Person has Beneficial Ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of more than 25% of the combined
voting power of the Company's then outstanding Voting Securities if Vencor, Inc.
then beneficially owns less than 25% of the combined voting power of the
Company's then outstanding Voting Securities; provided, however, that in
determining whether a Change in Control has occurred, Voting Securities which
are acquired in a Non-Control Acquisition (as hereinafter defined) shall not
constitute an acquisition which would cause a Change in Control.  A Non-Control
Acquisition shall mean an acquisition by (i) the Company or any Subsidiary, (ii)
an employee benefit plan (or a trust forming a part thereof) maintained by the
Company or any Subsidiary, (iii) Vencor, Inc. or any Subsidiary or (iv) any
Person in connection with a Non-Control Transaction (as hereinafter defined);
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          (2) The individuals who, as of December 31, 1996, are members of the
Board ("Incumbent Board"), cease for any reason to constitute at least a
majority of the Board; provided, however, that if the election, or nomination
for election by the Company's stockholders, of any new director was approved by
a vote of at least a majority of the Incumbent Board, such new director shall,
for purposes of the Plan, be considered as a member of the Incumbent Board;
provided, further, however, that no individual shall be considered a member of
the Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened Election Contest (as described in Rule 14a-11
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board ("Proxy
Contest") including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or

          (3) Approval by stockholders of the Company of:

              (A) A merger, consolidation or reorganization involving the
Company, unless such is a Non-Control Transaction. For purposes of the Plan, the
term "Non-Control Transaction" shall mean a merger, consolidation or
reorganization of the Company in which:

                  (i)   the stockholders of the Company, immediately before such
merger, consolidation or reorganization, own, directly or indirectly immediately
following such merger, consolidation or reorganization, at least a majority of
the combined voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation or reorganization
("Surviving Corporation") in substantially the same proportion as their
ownership of the Voting Securities immediately before such merger, consolidation
or reorganization;

                  (ii)  the individuals who were members of the Incumbent Board
immediately prior to the execution of the agreement providing for such merger,
consolidation or reorganization constitute at least a majority of the members of
the board of directors of the Surviving Corporation; and

                  (iii) no Person (other than the Company, any Subsidiary, any
employee benefit plan (or any trust forming a part thereof) maintained by the
Company, the Surviving Corporation or any Subsidiary, or any Person who,
immediately prior to such merger, consolidation or reorganization had Beneficial
Ownership of 20% or more of the then outstanding Voting Securities) has
Beneficial Ownership of 20% or more of the combined voting power of the
Surviving Corporation's then outstanding voting securities;

              (B) A complete liquidation or dissolution of the Company; or

              (C) An agreement for the sale or other disposition of all or
substantially all of the assets of the Company to any Person (other than a
transfer to a Subsidiary).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
solely because any Person ("Subject Person") acquired Beneficial Ownership of
more than the permitted amount

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of the outstanding Voting Securities as a result of the acquisition of Voting
Securities by the Company which, by reducing the number of Voting Securities
outstanding, increases the proportional number of shares Beneficially Owned by
the Subject Person; provided, however, that if a Change in Control would occur
(but for the operation of this sentence) as a result of the acquisition of
Voting Securities by the Company, and after such share acquisition by the
Company the Subject Person becomes the Beneficial Owner of any additional Voting
Securities which increases the percentage of the then outstanding Voting
Securities Beneficially Owner by the Subject Person, then a Change in Control
shall occur.

     (e) "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, or any successor thereto.

     (f) "Committee" shall mean the committee described in Section 31.

     (g) "Disability" shall mean the total disability as determined by the
Committee in accordance with standards and procedures similar to those under the
Company's long-term disability plan, or, if none, a physical or mental infirmity
which the Committee determines impairs the Participant's ability to perform
substantially his or her duties for a period of 180 consecutive days.

     (h) "Employee" shall mean an individual who is a full-time employee of the
Company or a Subsidiary.

     (i) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

     (j) "Fair Market Value" of the Shares shall mean, as of any applicable
date, the closing sale price of the Shares on the Nasdaq National Market System
or any national or regional stock exchange in which the Shares are traded, or if
no such reported sale of the Shares shall have occurred on such date, on the
next preceding date on which there was such a reported sale.  If there shall be
any material alteration in the present system of reporting sale prices of the
Shares, or if the Shares shall no longer be listed on the Nasdaq National Market
System or a national or regional stock exchange, the fair market value of the
Shares as of a particular date shall be determined by such method as shall be
determined by the Committee.

     (k) "ISOs" shall have the meaning given such term in Section 61.

     (l) "NQSOs" shall have the meaning given such term in Section 61.

     (m) "Option" shall mean an option to purchase Shares granted pursuant to
Article 6.

     (n) "Option Agreement" shall mean an agreement evidencing the grant of an
Option as described in Section 62.

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     (o)  "Option Exercise Price" shall mean the purchase price per Share
subject to an Option, which shall not be less than the Fair Market Value of the
Share on the date of grant (110% of Fair Market Value in the case of an ISO
granted to a Ten Percent Shareholder).

     (p)  "Participant" shall mean any Employee selected by the Committee to
receive an Award under the Plan.

     (q)  "Performance Goals" shall have the meaning given such term in Section
84.

     (r)  "Performance Period" shall have the meaning given such term in Section
83.

     (s)  "Performance Unit" shall mean the right to receive a payment from the
Company upon the achievement of specified Performance Goals as set forth in a
Performance Unit Agreement.

     (t)  "Performance Unit Agreement" shall mean an agreement evidencing a
Performance Unit Award, as described in Section 82.

     (u)  "Person" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d).

     (v)  "Plan" shall mean this Atria Communities, Inc. 1996 Stock Ownership
Incentive Plan as the same may be amended from time to time.

     (w)  "Restriction Period" shall mean the period determined by the Committee
during which the transfer of Shares is limited in some way or Shares are
otherwise restricted or subject to forfeiture as provided in Article 7.

     (x)  "Restricted Stock" shall mean Shares granted pursuant to Article 7 as
to which the restrictions have not expired.

     (y)  "Restricted Stock Agreement" shall mean an agreement evidencing a
Restricted Stock Award, as described in Section 72.

     (z)  "Retirement" shall mean retirement by a Participant in accordance with
the terms of the Company's retirement or pension plans.

     (aa) "Shares" shall mean the shares of the Company's common stock, par
value $.10 per share.

     (bb) "Subsidiary" shall mean, with respect to any company, any corporation
or other Person of which a majority of its voting power, equity securities, or
equity interest is owned directly or indirectly by such company.

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     (cc) "Ten Percent Shareholder" shall mean an Employee who, at the time an
ISO is granted, owns (within the meaning of section 422(b)(6) of the Code) stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company.

     2.2  Gender and Number.  Except where otherwise indicated by the context,
reference to the masculine gender shall include the feminine gender, the plural
shall include the singular and the singular shall include the plural.

     2.3  Severability.  In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

ARTICLE 3.  ADMINISTRATION

     3.1  The Committee.  The Plan shall be administered by a Committee
appointed by the Board consisting of two or more directors of the Company or the
entire Board of the Company. The Committee shall meet at such times and places
as it determines and may meet through a telephone conference call.  The members
of the Committee shall be appointed from time to time by, and shall serve at the
discretion of, the Board.

     3.2  Authority of the Committee.  Subject to the provisions of the Plan,
the Committee shall have full authority to:

     (a)  select Participants to whom Awards are granted;

     (b)  determine the size, types and frequency of Awards granted under the
Plan;

     (c)  determine the terms and conditions of Awards, including any
restrictions or conditions to the Award, which need not be identical;

     (d)  cancel or modify, with the consent of the Participant, outstanding
Awards and to grant new Awards in substitution therefor;

     (e)  accelerate the exercisability of any Award, for any reason;

     (f)  construe and interpret the Plan and any agreement or instrument
entered into under the Plan;

     (g)  establish, amend and rescind rules and regulations for the Plan's
administration; and

     (h)  amend the terms and conditions of any outstanding Award to the extent
such terms and conditions are within the discretion of the Committee as provided
in the Plan.

The Committee shall make all other determinations which may be necessary or
advisable for the administration of the Plan.  To the extent permitted by law
and Rule 16b-3 promulgated under the Exchange Act, the Committee may delegate
its authority as identified hereunder.

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     3.3  Decisions Binding.  All determinations and decisions made by the
Committee pursuant to the provisions of the Plan, and all related orders or
resolutions of the Board, shall be final, conclusive and binding upon all
persons, including the Company, its stockholders, Employees, Participants and
their estates and beneficiaries.

     3.4  Section 16 Compliance; Bifurcation of Plan.  It is the intention of
the Company that the Plan and the administration of the Plan comply in all
respects with Section 16(b) of the Exchange Act and the rules and regulations
promulgated thereunder.  If any Plan provision, or any aspect of the
administration of the Plan, is found not to be in compliance with Section 16(b)
of the Exchange Act, the provision or administration shall be deemed null and
void, and in all events the Plan shall be construed in favor of its meeting the
requirements of Rule 16b-3 promulgated under the Exchange Act.  Notwithstanding
anything in the Plan to the contrary, the Board or the Committee, in its
discretion, may bifurcate the Plan so as to restrict, limit or condition the use
of any provision of the Plan to Participants who are subject to Section 16 of
the Exchange Act without so restricting, limiting or conditioning the Plan with
respect to other Participants.

ARTICLE 4.  SHARES AVAILABLE UNDER THE PLAN

     4.1  Number of Shares.  Subject to adjustment as provided in Section 43,
the number of Shares reserved for issuance upon the exercise of Awards and the
payment of benefits in connection with Awards is 1,000,000 Shares.  Any Shares
issued under the Plan may consist, in whole or in part, of authorized and
unissued Shares or treasury Shares.  If and to the extent an Award shall expire
or terminate for any reason without having been exercised in full (including a
cancellation and regrant of an Option), or shall be forfeited, without, in
either case, the Participant having realized any of the economic benefits of a
shareholder (such as the receipt of dividends or other distributions paid on
shares of Restricted Stock), the Shares (including Restricted Stock) associated
with such Awards shall again become available for Awards under the Plan.

     4.2  Shares of Restricted Stock Available Under the Plan.  Subject to
adjustment as provided in Section 43, the number of Shares which may be the
subject of Awards granted in the form of Restricted Stock is limited to 20% of
the Shares subject to the Plan.

     4.3  Adjustments in Authorized Shares and Outstanding Awards.  In the event
of a merger, reorganization, consolidation, recapitalization, reclassification,
split-up, spin-off, separation, liquidation, stock dividend, stock split,
reverse stock split, cash dividend, property dividend, share repurchase, share
combination, share exchange, issuance of warrants, rights or debentures, or
other change in the corporate structure of the Company affecting the Shares, the
Committee may substitute or adjust the total number and class of Shares or other
stock or securities which may be issued under the Plan, and the number, class
and/or price of Shares subject to outstanding Awards, as it determines to be
appropriate and equitable to prevent dilution or enlargement of the rights of
Participants and to preserve, without exceeding, the value of any outstanding
Awards; and further provided, that the number of Shares subject to any Award
shall always be a whole number.  In the case of ISOs, such adjustments shall be
made in such a manner

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so as not to constitute a "modification" within the meaning of section 424(h)(3)
of the Code and only to the extent otherwise permitted by sections 422 and 424
of the Code.

ARTICLE 5.  ELIGIBILITY AND PARTICIPATION

     All Employees of the Company and its Subsidiaries are eligible to receive
Awards under the Plan.  In selecting Employees to receive Awards under the Plan,
as well as in determining the number of Shares subject to, and the other terms
and conditions applicable to, each Award, the Committee shall take into
consideration such factors as it deems relevant in promoting the purposes of the
Plan, including the duties of the Employees, their present and potential
contribution to the success of the Company and their anticipated number of years
of active service remaining with the Company or a Subsidiary.

ARTICLE 6.  STOCK OPTIONS

     6.1  Grant of Options.  Subject to the terms and provisions of the Plan,
the Committee may grant Options to Participants at any time and from time to
time, in the form of options which are intended to qualify as incentive stock
options within the meaning of section 422 of the Code ("ISOs"), Options which
are not intended to so qualify ("NQSOs") or a combination thereof.  The maximum
number of Shares with respect to which Options may be granted to any Participant
under the Plan shall not exceed 40% of the Shares subject to the Plan.

     6.2  Option Agreement.  Each Option shall be evidenced by an Option
Agreement that shall specify the Option Exercise Price, the duration of the
Option, the number of Shares to which the Option relates and such other
provisions as the Committee may determine or which are required by the Plan.
The Option Agreement shall also specify whether the Option is intended to be an
ISO or a NQSO and shall include such provisions applicable to the particular
type of Option granted.

     6.3  Duration of Options.  Each Option shall expire at such time as is
determined by the Committee at the time of grant; provided, however, that no
Option shall be exercised later than the tenth anniversary of its grant (fifth
anniversary in the case of an ISO granted to a Ten Percent Shareholder).

     6.4  Exercise of Options.  Options shall be exercisable at such times and
be subject to such restrictions and conditions as the Committee shall approve at
the time of grant, which need not be the same for each grant or for each
Participant.  Except as provided in Section 66, however, in no event may any
Option become exercisable within six months of the date of grant in the case of
any Participant subject to Section 16(b) of the Exchange Act.  Options shall be
exercised by delivery to the Company of a written notice of exercise, setting
forth the number of Shares with respect to which the Option is to be exercised
and accompanied by full payment of the Option Exercise Price and all applicable
withholding taxes.

     6.5  Payment of Option Exercise Price.  The Option Exercise Price for
Shares as to which an Option is exercised shall be paid to the Company in full
at the time of exercise either (a)

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in cash in the form of currency or other cash equivalent acceptable to the
Company, (b) by tendering Shares having a Fair Market Value (determined as of
the close of the business day immediately preceding the day on which the Option
is exercised) equal to the Option Exercise Price (provided, however, that in the
case of a Participant subject to Section 16(b) of the Exchange Act, such Shares
have been held by the Participant for at least six months prior to their
tender), (c) any other reasonable consideration that the Committee may deem
appropriate or (d) by a combination of the forms of consideration described in
(a), (b) and (c) of this Section 65. The Committee may permit the cashless
exercise of Options as described in Regulation T promulgated by the Federal
Reserve Board, subject to applicable securities law restrictions, or by any
other means which the Committee determines to be consistent with the Plan's
purpose and applicable law.

     6.6  Vesting Upon Change in Control.  Upon a Change in Control, any then
outstanding Options held by Participants shall become fully vested and
immediately exercisable.  Furthermore, if provided in an Option Agreement, the
Participant shall have the right to sell the Option back to the Company for an
amount generally equal to the excess of the Fair Market Value of the Shares
subject to the Option over the Option Price.

     6.7  Termination of Employment.  If the employment of a Participant is
terminated for Cause, all then outstanding Options of such Participant, whether
or not exercisable, shall terminate immediately.  If the employment of a
Participant is terminated for any reason other than for Cause, death, Disability
or Retirement, to the extent then outstanding Options of such Participant are
exercisable, such Options may be exercised by such Participant or such
Participant's personal representative at any time prior to the expiration date
of the Options or within 90 days after the date of such termination of
employment, whichever is shorter.  In the event of the Retirement of a
Participant, to the extent then outstanding Options of such Participant are
exercisable, such Options may be exercised by the Participant (a) in the case of
NQSOs, within two years after the date of Retirement and (b) in the case of
ISOs, within 90 days after Retirement; provided, however, that no such Options
may be exercised on a date subsequent to their expiration.  In the event of the
death or Disability of a Participant while employed by the Company or a
Subsidiary, all then outstanding Options of such Participant shall become fully
vested and immediately exercisable, and may be exercised at any time (c) in the
case of NQSOs, within two years after the date of death or determination of
Disability and (d) in the case of ISOs, within one year after the date of death
or determination of Disability; provided however that no such Options may be
exercised on a date subsequent to their expiration.  In the event of the death
of a Participant, the Option may be exercised by the person or persons to whom
rights pass by will or by the laws of descent and distribution, or if
appropriate, the legal representative of the deceased Participant's estate.  In
the event of the Disability of a Participant, Options may be exercised by the
Participant, or if such Participant is incapable of exercising the Options, by
such Participant's legal representative.

ARTICLE 7.  RESTRICTED STOCK


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     7.1  Grant of Restricted Stock.  Subject to the terms and provisions of the
Plan, the Committee may grant shares of Restricted Stock to Participants at any
time and from time to time and upon such terms and conditions as it may
determine.

     7.2  Restricted Stock Agreement.  Each Restricted Stock grant shall be
evidenced by a Restricted Stock Agreement which shall specify the Restriction
Period, the number of shares of Restricted Stock granted and such other
provisions as the Committee may determine and which are required by the Plan.

     7.3  Non-Transferability of Restricted Stock.  Except as provided in this
Article 7, shares of Restricted Stock may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated until the end of the applicable
Restriction Period as specified in the Restricted Stock Agreement, or upon
earlier satisfaction of any other conditions determined at the time of grant
specified in the Restricted Stock Agreement.  Except as provided in Section 79,
however, in no event may any Restricted Stock become vested in a Participant
subject to Section 16(b) of the Exchange Act prior to six months following the
date of its grant.

     7.4  Other Restrictions.  The Committee may impose such other restrictions
on any shares of Restricted Stock as it may deem advisable, including, without
limitation, restrictions based upon the achievement of Performance Goals, years
of service and/or restrictions under applicable Federal or state securities
laws.  The Committee may provide that any share of Restricted Stock shall be
held (together with a stock power executed in blank by the Participant) in
custody by the Company until any or all restrictions thereon shall have lapsed.

     7.5  Forfeiture.  The Committee shall determine and set forth in a
Participant's Restricted Stock Agreement such events upon which a Participant's
shares of Restricted Stock shall be forfeitable, which may include, without
limitation, the termination of a Participant's employment during the Restriction
Period or the nonachievement of Performance Goals.  Any such forfeited shares of
Restricted Stock shall be immediately returned to the Company by the
Participant, and the Participant shall only receive the amount, if any, paid by
the Participant for such Restricted Stock.

     7.6  Certificate Legend.  In addition to any legends placed on certificates
pursuant to Section 74, each certificate representing shares of Restricted Stock
shall bear the following legend:

          "The sale or other transfer of the shares represented by this
          Certificate, whether voluntary, involuntary or by operation of law, is
          subject to certain restrictions on transfer as set forth in the 1996
          Atria Communities, Inc. Stock Ownership Incentive Plan, and in the
          related Restricted Stock Agreement.  A copy of the Plan and such
          Restricted Stock Agreement may be obtained from the Secretary of Atria
          Communities, Inc."

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     7.7  Lapse of Restrictions Generally.  Except as otherwise provided in this
Article 7, shares of Restricted Stock shall become freely transferable by the
Participant and no longer subject to forfeiture after the last day of the
Restriction Period; provided however, that if the restriction relates to the
achievement of a Performance Goal, the Restriction Period shall not end until
the Committee has certified in writing that the Performance Goal has been met.
Once the shares of Restricted Stock are released from their restrictions, the
Participant shall be entitled to have the legend required by Section 76 removed
from the Participant's share certificate, which certificate shall thereafter
represent freely transferable and nonforfeitable Shares free from any and all
restrictions under the Plan.

     7.8  Lapse of Restrictions Upon Change in Control.  Upon a Change in
Control, any restrictions and other conditions pertaining to then outstanding
shares of Restricted Stock held by Participants, including, but not limited to,
vesting requirements, shall lapse and such Shares shall thereafter be
immediately transferable and nonforfeitable.

     7.9  Voting Rights; Dividends and Other Distributions.  Unless the
Committee exercises its discretion as provided in Section 710, during the
Restriction Period, Participants holding shares of Restricted Stock may exercise
full voting rights, and shall be entitled to receive all dividends and other
distributions paid, with respect to such Restricted Stock.  If any dividends or
distributions are paid in Shares, the Shares shall be subject to the same
restrictions as the shares of Restricted Stock with respect to which they were
paid.

     7.10  Treatment of Dividends.  At the time shares of Restricted Stock are
granted to a Participant, the Committee may, in its discretion, determine that
the payment of dividends, or a specified portion thereof, declared or paid on
such shares shall be deferred until the lapse of the restrictions with respect
to such shares, in which event such deferred dividends shall be held by the
Company for the account of the Participant.  In the event of such deferral,
there may be credited at the end of each year (or portion thereof) interest on
the amount of the account during the year at a rate per annum as the Committee,
in its discretion, may determine.  Deferred dividends, together with interest
accrued thereon, if any, shall be (a) paid to the Participant upon the lapse of
restrictions on the shares of Restricted Stock as to which the dividends related
or (ii) forfeited to the Company upon the forfeiture of such shares by the
Participant.

     7.11  Termination of Employment.  If the employment of a Participant is
terminated for any reason other than death or Disability prior to the expiration
of the Restriction Period applicable to any shares of Restricted Stock then held
by the Participant, such shares shall thereupon be forfeited immediately by the
Participant and returned to the Company, and the Participant shall only receive
the amount, if any, paid by the Participant for such Restricted Stock. If the
employment of a Participant is terminated as a result of death or Disability
prior to the expiration of the Restriction Period applicable to any shares of
Restricted Stock then held by the Participant, any restrictions and other
conditions pertaining to such shares then held by the Participant, including,
but not limited to, vesting requirements, shall immediately lapse and such
Shares shall thereafter be immediately transferable and nonforfeitable.
Notwithstanding anything in the Plan to the contrary, except in the case of
Restricted Stock for which a Performance Goal must be achieved, the Committee
may determine, in its sole discretion, in the case of any

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termination of a Participant's employment other than for Cause, that the
restrictions on some or all of the shares of Restricted Stock awarded to a
Participant shall immediately lapse and such Shares shall thereafter be
immediately transferable and nonforfeitable.

ARTICLE 8.  PERFORMANCE UNITS

     8.1  Grant of Performance Units.  The Committee may, from time to time and
upon such terms and conditions as it may determine, grant Performance Units
which will become payable to a Participant upon certification in writing by the
Committee that the Performance Goals related thereto have been achieved.

     8.2  Performance Unit Agreement.  Each Performance Unit grant shall be
evidenced by a Performance Unit Agreement that shall specify the Performance
Goals, the Performance Period and the number of Performance Units to which it
pertains.

     8.3  Performance Period.  The period of performance ("Performance Period")
with respect to each Performance Unit shall be such period of time, which shall
not be less than one year, nor more than five years, as determined by the
Committee, for the measurement of the extent to which Performance Goals are
attained.

     8.4  Performance Goals.  The goals ("Performance Goals") that are to be
achieved with respect to each Performance Unit, or Restricted Stock subject to a
requirement that Performance Goals be achieved, shall be those objectives
established by the Committee as it deems appropriate, and which may be expressed
in terms of (a) earnings per Share, (b) Share price, (c) pre-tax profit, (d) net
earnings, (e) return on equity or assets, (f) revenues or (g) any combination of
the foregoing.  Performance Goals may be in respect of the performance of the
Company and its Subsidiaries (which may be on a consolidated basis), a
Subsidiary, a Division or other operating unit of the Company.  Performance
Goals may be absolute or relative and may be expressed in terms of a progression
within a specified range.  The Performance Goals with respect to a Performance
Period shall be established by the Committee in order to comply with Rule 16b-3
under the Exchange Act and section 162(m) of the Code, as applicable.

     8.5  Termination of Employment.  If the employment of a Participant shall
terminate prior to the expiration of the Performance Period for any reason other
than for death, Disability or Retirement, the Performance Units then held by the
Participant shall terminate.  In the case of termination of employment by reason
of death, Disability or Retirement of a Participant prior to the expiration of
the Performance Period, any then outstanding Performance Units of such
Participant shall be payable in an amount equal to the maximum amount payable
under the Performance Unit multiplied by a percentage equal to the percentage
that would have been earned under the terms of the Performance Unit Agreement
assuming that the rate at which the Performance Goals have been achieved as of
the date of such termination of employment would have continued until the end of
the Performance Period; provided, however, that if no maximum amount payable is
specified in the Performance Unit Agreement, the amount payable shall be such
amount as the Committee shall determine is reasonable.

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     8.6  Payment Upon Change in Control.  Upon a Change in Control, any then
outstanding Performance Units shall become fully vested and immediately payable
in an amount which is equal to the greater of (a) the maximum amount payable
under the Performance Unit multiplied by a percentage equal to the percentage
that would have been earned under the terms of the Performance Unit Agreement
assuming that the rate at which the Performance Goals have been achieved as of
the date of such Change in Control would have continued until the end of the
Performance Period or (b) the maximum amount payable under the Performance Unit
multiplied by the percentage of the Performance Period completed by the
Participant at the time of the Change in Control; provided, however, that if no
maximum amount payable is specified in the Performance Unit Agreement, the
amount payable shall be such amount as the Committee shall determine is
reasonable.

     8.7  Payment of Performance Units.  Subject to such terms and conditions as
the Committee may impose, and unless otherwise provided in the Performance Unit
Agreement, Performance Units shall be payable within 90 days following the end
of the Performance Period during which the Participant attained at least the
minimum acceptable level of achievement under the Performance Goals, or 90 days
following a Change in Control, as applicable.  The Committee, in its discretion,
may determine at the time of payment required in connection with a Performance
Unit whether such payment shall be made (a) solely in cash, (b) solely in Shares
(valued at the Fair Market Value of the Shares on the date of payment) or (c) a
combination of cash and Shares; provided, however, that if a Performance Unit
becomes payable upon a Change in Control, the Performance Unit shall be paid
solely in cash.

     8.8  Designation of Beneficiary.  Each Participant may, from time to time,
name any beneficiary or beneficiaries (who may be named contingently or
successively) to whom the right to receive payments under a Performance Unit is
to be paid in case of the Participant's death before receiving any or all such
payments.  Each such designation shall revoke all prior designations by the
Participant, shall be in a form prescribed by the Company and shall be effective
only when filed by the Participant in writing with the Committee during the
Participant's lifetime.  In the absence of any such designation, benefits
remaining unpaid at the Participant's death shall be paid to the Participant's
estate.

ARTICLE 9.  AMENDMENT, MODIFICATION AND TERMINATION

     9.1  Effective Date.  The Plan shall become effective upon adoption by the
Board.  The Plan shall be rescinded and all Options and shares of Restricted
Stock granted hereunder shall be null and void unless within 12 months from the
date of the adoption of the Plan by the Board it shall have been approved by the
holders of a majority of the outstanding Shares present or represented and
entitled to vote on the Plan at a stockholders' meeting.

     9.2  Termination Date.  The Plan shall terminate on the earliest to occur
of (a) the tenth anniversary of the adoption of the Plan by the Board, (b) the
date when all Shares available under the Plan shall have been acquired pursuant
to the exercise of Awards and the payment of all benefits in connection with
Performance Unit Awards has been made or (c) such other date as the Board may
determine in accordance with Section 92.

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<PAGE>

     9.3  Amendment, Modification and Termination.  The Board may, at any time,
amend, modify or terminate the Plan.  Without the approval of the stockholders
of the Company (as may be required by the Code, Section 16 of the Exchange Act
and the rules promulgated thereunder, any national securities exchange or system
on which the Shares are then listed or reported or a regulatory body having
jurisdiction with respect hereto), however, no such amendment, modification or
termination may:

     (a)  materially increase the benefits accruing to Participants under the
Plan;

     (b)  increase the total amount of Shares which may be issued under the
Plan, except as provided in Section 43; or

     (c)  materially modify the class of Employees eligible to participate in
the Plan.

     9.4  Awards Previously Granted.  No amendment, modification or termination
of the Plan shall in any manner adversely affect any outstanding Award without
the written consent of the Participant holding such Award.

ARTICLE 10.  NON-TRANSFERABILITY

     A Participant's rights under the Plan may not be assigned, pledged or
otherwise transferred other than by will or the laws of descent and
distribution, except that upon a Participant's death, the Participant's rights
to payment pursuant to a Performance Unit may be transferred to a beneficiary
designated in accordance with Section 88; provided, however, that in the case of
NQSOs, the Participant may, subject to any restrictions under Section 16(b) of
the Exchange Act, if applicable, transfer the Options to the Participant's
spouse, lineal descendants, trusts for their benefit or a charitable remainder
trust of which Participant or such family members referred to above are a
beneficiary.

ARTICLE 11.  NO GRANTING OF EMPLOYMENT RIGHTS

     Neither the Plan, nor any action taken under the Plan, shall be construed
as giving any Employee the right to become a Participant, nor shall an Award
under the Plan be construed as giving a Participant any right with respect to
continuance of employment by the Company.  The Company expressly reserves the
right to terminate, whether by dismissal, discharge or otherwise, a
Participant's employment at any time, with or without Cause, except as may
otherwise be provided by any written agreement between the Company and the
Participant.

                                      -13-
<PAGE>

ARTICLE 12.  WITHHOLDING

     12.1  Tax Withholding.  A Participant shall remit to the Company an amount
sufficient to satisfy Federal, state and local taxes (including the
Participant's FICA and Medicare obligation) required by law to be withheld with
respect to any grant, exercise or payment made under or as a result of the Plan.

     12.2  Share Withholding.  If the Company has a withholding obligation upon
the issuance of Shares under the Plan, a Participant may, subject to the
discretion of the Committee, elect to satisfy the withholding requirement, in
whole or in part, by having the Company withhold Shares having a Fair Market
Value on the date the withholding tax is to be determined equal to the amount
required to be withheld under applicable law.  Notwithstanding the foregoing,
the Committee may, by the adoption of rules or otherwise, modify the provisions
of this Section 122 or impose such other restrictions or limitations on such
elections as may be necessary to ensure that such elections will be exempt
transactions under Section 16(b) of the Exchange Act.

ARTICLE 13.  INDEMNIFICATION

     No member of the Board or the Committee, nor any officer or Employee acting
on behalf of the Board or the Committee, shall be personally liable for any
action, determination or interpretation taken or made with respect to the Plan,
and all members of the Board, the Committee and each officer or Employee of the
Company acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Company with respect to any such action,
determination or interpretation.

ARTICLE 14.  SUCCESSORS

     All obligations of the Company with respect to Awards granted under the
Plan shall be binding on any successor to the Company, whether the existence of
such successor is a result of a direct or indirect purchase, merger,
consolidation or otherwise, of all or substantially all of the business and/or
assets of the Company.

ARTICLE 15.  GOVERNING LAW

     To the extent not preempted by Federal law, the Plan, and all agreements
under the Plan, shall be governed by, and construed in accordance with, the laws
of the State of Delaware without regard to its conflict of laws rules.
Furthermore, all the Plan and all Option Agreements relating to ISOs shall be
interpreted so as to qualify as incentive stock options under the Code.

     IN WITNESS WHEREOF, this 1996 Stock Ownership Incentive Plan has been
executed by the Company as of the 13th day of June, 1996, being the date the

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Plan was adopted by the Board.

                                    ATRIA COMMUNITIES, INC.



                                    By: /s/ RALPH H. BELLANDE
                                       ----------------------------------------
                                        Chief Operating Officer
                                       ----------------------------------------

ATTEST:

/s/ J. TIMOTHY WESLEY
-------------------------------
     Secretary

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