##### 



Exhibit 2.8




---



##### 



TABLE OF CONTENTS
 PageARTICLE 1 DEFINITIONS AND INTERPRETATION
    
    
    2ARTICLE 2 THE MERGER
    
    
    22.01.
    
    The Merger
    
    
    22.02.
    
    Closing; Effective Time
    
    
    22.03.
    
    Effects of the Merger
    
    
    32.04.
    
    Charter; Bylaws
    
    
    32.05.
    
    Directors and Officers of the Surviving Corporation
    
    
    3ARTICLE 3 CONVERSION OF SECURITIES; CONTINGENT PAYMENTS; WORKING CAPITAL ADJUSTMENT
    
    
    43.01.
    
    Merger Consideration
    
    
    43.02.
    
    Appraisal Rights
    
    
    73.03.
    
    Stock Options
    
    
    83.04.
    
    Capital Stock of Merger Sub
    
    
    93.05.
    
    Surrender and Exchange of Certificates
    
    
    93.06.
    
    Further Ownership Rights in Company Capital Stock
    
    
    103.07.
    
    Lost, Stolen or Destroyed Certificates
    
    
    113.08.
    
    Working Capital Adjustment
    
    
    113.09.
    
    Medicare Cap Liability Escrow Amount Determination
    
    
    13ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE PRINCIPAL STOCKHOLDERS
    
    
    134.01.
    
    Organization and Good Standing
    
    
    144.02.
    
    Authorization
    
    
    144.03.
    
    Governmental Authorization
    
    
    154.04.
    
    Non-contravention
    
    
    154.05.
    
    Acquired Companies
    
    
    164.06.
    
    Capitalization
    
    
    174.07.
    
    Financial Statements
    
    
    184.08.
    
    Absence of Certain Changes
    
    
    194.09.
    
    No Undisclosed Liabilities
    
    
    204.10.
    
    Litigation
    
    
    204.11.
    
    Taxes
    
    
    214.12.
    
    ERISA
    
    
    224.13.
    
    Labor Matters
    
    
    254.14.
    
    Compliance with Laws
    
    
    254.15.
    
    Licenses and Permits
    
    
    264.16.
    
    Contracts
    
    
    264.17.
    
    Intellectual Property
    
    
    284.18.
    
    Environmental Matters
    
    
    304.19.
    
    Agreements with Affiliates
    
    
    314.20.
    
    Insurance
    
    
    31




---



##### 



Page4.21.
    
    Real Property
    
    
    324.22.
    
    Title to Property
    
    
    334.23.
    
    Condition of Assets
    
    
    334.24.
    
    Customers and Suppliers
    
    
    334.25.
    
    Books and Records
    
    
    334.26.
    
    Finders Fees
    
    
    344.27.
    
    Relations with Governments
    
    
    344.28.
    
    Health Regulatory Compliance
    
    
    344.29.
    
    Required Vote
    
    
    374.30.
    
    Accounts Receivable
    
    
    384.31.
    
    Existing Loans
    
    
    384.32.
    
    Investment Company Act; Investment Advisers Act
    
    
    394.33.
    
    Takeover Statutes
    
    
    394.34.
    
    Disclosure
    
    
    394.35.
    
    Title to the Principal Stockholders Shares
    
    
    404.36.
    
    Merger Consideration and Other Payment Calculation Statement
    
    
    404.37.
    
    No Other Representations or Warranties
    
    
    40ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SUNRISE AND MERGER SUB
    
    
    415.01.
    
    Corporate Existence and Power
    
    
    415.02.
    
    Corporate Authorization
    
    
    415.03.
    
    Governmental Authorization
    
    
    425.04.
    
    Non-contravention
    
    
    425.05.
    
    No Brokers or Finders
    
    
    425.06.
    
    No Other Representations or Warranties
    
    
    42ARTICLE 6 COVENANTS RELATING TO CONDUCT OF BUSINESS
    
    
    436.01.
    
    Conduct by the KRG Stockholders and the Acquired Companies
    
    
    436.02.
    
    Delivery of Periodic Financial Information
    
    
    456.03.
    
    Patient Care
    
    
    456.04.
    
    Dividends and Distributions
    
    
    466.05.
    
    Insurance Matters
    
    
    466.06.
    
    280G Consent
    
    
    46ARTICLE 7 ADDITIONAL AGREEMENTS
    
    
    467.01.
    
    Government and Other Consents and Approvals
    
    
    467.02.
    
    Access to Information
    
    
    477.03.
    
    Notices of Certain Events
    
    
    477.04.
    
    Affiliate Transactions
    
    
    487.05.
    
    Commercially Reasonable Efforts
    
    
    487.06.
    
    Public Announcements
    
    
    497.07.
    
    Further Assurances
    
    
    507.08.
    
    Confidentiality
    
    
    507.09.
    
    Employee Benefits
    
    
    507.10.
    
    Tax Matters
    
    
    517.11.
    
    Release and Nonsolicitation
    
    
    52
 -2-




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##### 



Page7.12.
    
    Repayment of Existing Loans
    
    
    527.13.
    
    No Solicitation
    
    
    527.14.
    
    Termination of Certain Agreements
    
    
    547.15.
    
    Takeover Statutes
    
    
    547.16.
    
    Stockholder and Other Claims
    
    
    547.17.
    
    Stockholder Arrangements
    
    
    557.18.
    
    Post-Closing Cooperation
    
    
    557.19.
    
    No Redemption of Company Capital Stock
    
    
    557.20.
    
    Transfer of Securities
    
    
    557.21.
    
    Unpaid Tax Refunds
    
    
    56ARTICLE 8 CONDITIONS TO THE CLOSING
    
    
    568.01.
    
    Conditions to Each Partys Obligations to Effect the Merger
    
    
    568.02.
    
    Conditions to the Obligations of Sunrise and Merger Sub
    
    
    568.03.
    
    Conditions to the Obligations of the Principal Stockholders
    
    
    59ARTICLE 9 ADDITIONAL CLOSING DELIVERIES
    
    
    599.01.
    
    Deliveries by the Principal Stockholders and the Company
    
    
    599.02.
    
    Deliveries by Sunrise and Merger Sub
    
    
    61ARTICLE 10 INDEMNIFICATION
    
    
    6110.01.
    
    General Indemnification
    
    
    6110.02.
    
    Survival
    
    
    6510.03.
    
    Limitation on Liability
    
    
    6510.04.
    
    Payment
    
    
    6710.05.
    
    No Recourse
    
    
    6810.06.
    
    Effect of Knowledge on Indemnification
    
    
    6810.07.
    
    Remedies Exclusive
    
    
    6810.08.
    
    No Duplication of Claims
    
    
    6910.09.
    
    Characterization of Payments
    
    
    69ARTICLE 11 TERMINATION
    
    
    6911.01.
    
    Termination
    
    
    6911.02.
    
    Effect of Termination
    
    
    71ARTICLE 12 MISCELLANEOUS
    
    
    7112.01.
    
    Notices
    
    
    7112.02.
    
    Amendments; No Waivers
    
    
    7312.03.
    
    Expenses
    
    
    7412.04.
    
    Successors and Assigns; Benefit
    
    
    7412.05.
    
    Governing Law
    
    
    7412.06.
    
    Resolution of Disputes
    
    
    7512.07.
    
    Severability
    
    
    7512.08.
    
    Table of Contents; Headings
    
    
    7512.09.
    
    Counterparts; Effectiveness
    
    
    7612.10.
    
    WAIVER OF JURY TRIAL
    
    
    7612.11.
    
    Entire Agreement
    
    
    76
 -3-




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##### 



Page12.12.
    
    Specific Performance
    
    
    7612.13.
    
    Principal Stockholders Representative
    
    
    7612.14.
    
    No Third Party Beneficiary
    
    
    78
 -4-




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##### 



EXHIBITS
 Exhibit A
    
    Certificate of Incorporation of Surviving CorporationExhibit B
    
    Form of Escrow AgreementExhibit C
    
    Form of Release AgreementExhibit D
    
    Form of Nonsolicitation AgreementExhibit E-1
    
    Form of Opinion of Counsel of the KRG StockholdersExhibit E-2
    
    Form of Opinion of Counsel of the ACS StockholderExhibit E-3
    
    Form of Opinion of Counsel of the Company
 -5-




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##### 



AGREEMENT AND PLAN OF MERGER
 THIS AGREEMENT AND PLAN OF MERGER Agreement Sunrise Merger Sub Company KRG
II KRG II (FF) KRG II (PA) KRG Co-Investment KRG Stockholder KRG Stockholders ACS Stockholder Principal Stockholders Representative Principal Stockholder Principal Stockholders
  WHEREAS DGCL Merger
 WHEREAS
 WHEREAS
 WHEREAS




---



##### 



WHEREAS
 NOW, THEREFORE,
 ARTICLE 1
DEFINITIONS AND INTERPRETATION
 Annex I
 ARTICLE 2
THE MERGER
 2.01. The Merger.
 Surviving Corporation
 2.02. Closing; Effective Time.
 Article 8 Closing Article 8 Article 11
 -2-




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##### 



Section 2.02 Closing Date Certificate of Merger Effective Time
 2.03. Effects of the Merger.
  2.04. Charter; Bylaws.
 Exhibit A
  2.05. Directors and Officers of the Surviving Corporation.
  -3-




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##### 



ARTICLE 3
CONVERSION OF SECURITIES;
CONTINGENT PAYMENTS; WORKING CAPITAL ADJUSTMENT
 3.01. Merger Consideration.
 Merger Consideration. Merger Consideration minus minus plus minus minus minus minus minus minus
 Escrow Amount Section 3.01 Escrow
Amount Escrow Agent Article 10 Exhibit B Escrow
Agreement Article 10 Article 10 Article 10
 Article 10 Section 3.01(b) Article 10 Article 10
 Payment of Merger Consideration
  -4-




---



##### 



Effect on Stock.
 Article 3
 Article 3
 Article 3
 -5-




---



##### 



Article 3
 Article 3
 Article 3 Section 3.08(c)
 Article 3 Section 3.08(c) Section 3.08(c)
 -6-




---



##### 



Other Payments at Closing
 Section
3.01(a)
 Section 3.01(a)
 Section
3.01(a)
 Section 3.01(a)
 Section 3.01(a)
 Pre-Closing Delivery of Information Merger Consideration and Other
Payment Calculation Statement Schedule 3.01(f)
 3.02. Appraisal Rights.
 Appraisal
Shares Section 262 Section 3.01 provided however
 -7-




---



##### 



Section 3.01
 3.03. Stock Options.
 Stock Option Plan
 Section 3.03(a) Section 3.03 Section 3.03
 -8-




---



##### 



3.04. Capital Stock of Merger Sub.
 Merger Sub Common
Stock
 3.05. Surrender and Exchange of Certificates.
 Paying Agent Paying Agent
 Sunrise to Provide Merger Consideration Section 3.01(a) Exchange Fund Section 3.05(b)
 Exchange Procedures Certificates Section 3.01 Transmittal Letter Section 3.01(c) Section 3.01
 -9-




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##### 



Payment to Registered Holders
 No Liability
 Withholding of Tax
 Paying Agent Costs and Expenses
 3.06. Further Ownership Rights in Company Capital Stock.
 Article 3 Section 3.08(c) Section 3.01(d)
 -10-




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##### 



Article 3
 3.07. Lost, Stolen or Destroyed Certificates.
 provided however ,
 3.08. Working Capital Adjustment.
 Estimated Working Capital Schedule I-13 Section
I-13 Section 3.01(a)
 Closing Date Statement Proposed Final Working
Capital Section 3.08(a)
 -11-




---



##### 



Section 3.08(b) Section 3.08(b) Final Working
Capital
 Section 3.08(c) Final Working Capital Payment Section 3.08(c)
 -12-




---



##### 



Section 3.08
 3.09. Medicare Cap Liability Escrow Amount Determination.
 First Estimated Medicare Cap Liability Escrow Amount
 Medicare Cap Liability Escrow Amount Section 3.01(b)
 ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE PRINCIPAL STOCKHOLDERS
 Article 4 Sections 4.01(b), 4.02(b), 4.03(b), 4.04(b), 4.19(b),
4.26(b), 4.32(b), 4.34(b), 4.35(b) and 4.37(b)
 Sections 4.01(b), 4.02(b), 4.03(b), 4.04(b), 4.19(b), 4.26(b), 4.32(b), 4.34(b), 4.35(b) and
4.37(b)
 -13-




---



##### 



4.01. Organization and Good Standing.
   4.02. Authorization.
   -14-




---



##### 



4.03. Governmental Authorization.
 Section 4.03(a) Section 4.29
  4.04. Non-contravention.
 Section 4.04(a) Section 4.04(a)
 -15-




---



##### 



Section 4.04(b) Section
4.04(b)
 4.05. Acquired Companies.
 Section 4.05(a)
  -16-




---



##### 



Section 4.05(b) Stockholder Charter Amendment Approval Section 4.16
 4.06. Capitalization.
 Section 4.06(a)
 Section 4.06(b) Sections 4.06(a), 4.06(b) 4.06(c)
 Section 4.06(c)
 -17-




---



##### 



Section 4.06(c)
 Section 4.06(d) Section 4.06(d) Section 4.06(d)
 Section 4.06(e)
  4.07. Financial Statements.
 Section 4.07 Financial
 -18-




---



##### 



Statements 2005 Trinity Balance Sheet June 2006
Trinity Balance Sheet Trinity Balance Sheet Date
 4.08. Absence of Certain Changes.
 Section 4.08
         -19-




---



##### 



4.09. No Undisclosed Liabilities.
    4.10. Litigation.
 Section 4.10 Section 4.10
 -20-




---



##### 



4.11. Taxes.
        -21-




---



##### 



Section 4.11(h)
       4.12. ERISA.
 Section 4.12 Trinity Plan ERISA
 -22-




---



##### 



Trinity Employees
  Controlled
Group
  Multiemployer Plan
 -23-




---



##### 



Section 4.12(f)
   Section 4.12(i)
   -24-




---



##### 



4.13. Labor Matters.
 Section 4.13(a)
 Section 4.13(b)
  4.14. Compliance with Laws.
 Section 4.14 Section 4.14 Section
4.14 Sections 4.11, 4.12 and
4.18
 -25-




---



##### 



4.15. Licenses and Permits.
 Section 4.15 Section 4.15 Section 4.14
 4.16. Contracts.
 Section 4.16(a)
    -26-




---



##### 



-27-




---



##### 



Section 4.16 Section 4.16 Section
4.16 Section 4.16(a) Section 4.16(b) Section 4.16(b)
  4.17. Intellectual Property.
 Section 4.17(a)
 -28-




---



##### 



Section 4.17(a)
 Section 4.17(b)
 Employee Handbook
 -29-




---



##### 



Section 4.17(c)
  4.18. Environmental Matters.
   Section 4.18(a)(iii)
    -30-




---



##### 



Section
4.18(a)(vii)
  4.19. Agreements with Affiliates.
 Section 4.19(a)
 Section 4.19(b)
 4.20. Insurance.
 Section 4.20 Section 4.20
 -31-




---



##### 



Section 4.20 Section 4.20 Section 4.20
 4.21. Real Property.
 Section 4.21(a) Leases Leased Real Property
 Section
4.21(a)
  -32-




---



##### 



4.22. Title to Property.
 Section 4.22
 4.23. Condition of Assets.
 Section 4.23
 4.24. Customers and Suppliers.
 Section 4.24(a)
  4.25. Books and Records.
  -33-




---



##### 



4.26. Finders Fees.
   4.27. Relations with Governments.
  4.28. Health Regulatory Compliance.
 Government
Programs Section 4.28
 -34-




---



##### 



Section
4.28(a)
 Section 4.28(b)
    -35-




---



##### 



HIPAA Section 4.28(c)
 Stark
Law
  Anti-Kickback
Statute
    -36-




---



##### 



4.29. Required Vote.
 Stockholder
Approval Section 4.16 Section 6.06
 -37-




---



##### 



4.30. Accounts Receivable.
 Section 4.30
 4.31. Existing Loans.
 Section 4.31 Existing Loans Section 4.31 Section 4.31
 -38-




---



##### 



4.32. Investment Company Act; Investment Advisers Act.
   4.33. Takeover Statutes.
 Takeover
Statute
 4.34. Disclosure.
 Section 8.02 or 9.01
 Section 8.02 or 9.01
 -39-




---



##### 



4.35. Title to the Principal Stockholders Shares.
 Section 4.06(b) Section 4.06(b) Section 4.06(b)
 Section 4.06(b) Section 4.06(b) Section 4.06(b)
 4.36. Merger Consideration and Other Payment Calculation Statement.
 Section 3.01(f) Section 3.01(f) Section
3.01
 4.37. No Other Representations or Warranties.
  -40-




---



##### 



ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF SUNRISE AND MERGER SUB
  5.01. Corporate Existence and Power.
  5.02. Corporate Authorization.
  -41-




---



##### 



5.03. Governmental Authorization.
 Section 5.03
 5.04. Non-contravention.
  5.05. No Brokers or Finders.
  5.06. No Other Representations or Warranties.
  -42-




---



##### 



ARTICLE 6
COVENANTS RELATING TO CONDUCT OF BUSINESS
 6.01. Conduct by the KRG Stockholders and the Acquired Companies.
       -43-




---



##### 



Section 4.16(a)
       Section
6.04 Section 7.17
 Section 6.01(o)
 -44-




---



##### 



6.02. Delivery of Periodic Financial Information.
  6.03. Patient Care.
  -45-




---



##### 



6.04. Dividends and Distributions.
  6.05. Insurance Matters.
 Schedule 4.20
 6.06. 280G Consent.
  ARTICLE 7
ADDITIONAL AGREEMENTS
 7.01. Government and Other Consents and Approvals.
  Section
7.01(b)
 -46-




---



##### 



Appraisal Notice  Section 11.01
 7.02. Access to Information.
 Sunrise Representatives provided Section 7.02 provided further Section 7.02
 7.03. Notices of Certain Events.
 Section 4.10
  -47-




---



##### 



Section 8.01 Section 8.02 New Disclosure Section 7.03(b) Article 10
 Section
8.01 Section 8.03 Section 7.03(c) Article 10
 7.04. Affiliate Transactions.
 Section 7.04
 7.05. Commercially Reasonable Efforts.
 Section 8.01 Section 8.02 Section 8.01 Section 8.03
 -48-




---



##### 



Section 7.01 DOJ FTC Section 7.05
 7.06. Public Announcements.
 provided
 -49-




---



##### 



7.07. Further Assurances.
  7.08. Confidentiality.
 Article 11
 Section 7.08(b) Section 7.08(b)
 7.09. Employee Benefits.
 Section 7.09 Continuing Plans Section 7.09
 -50-




---



##### 



7.10. Tax Matters.
 Section 7.10
 Section 7.10(a)
  Section 7.10 provided
  -51-




---



##### 



provided
  7.11. Release and Nonsolicitation.
 Exhibit C Release Agreement Exhibit D Nonsolicitation Agreement
 7.12. Repayment of Existing Loans.
 Section 7.12(b) Section 3.01(e)(i)
 Section 7.12(b)
 7.13. No Solicitation.
 Trinity Representatives
 -52-




---



##### 



Strategic Transaction
 Superior Proposal
 Section 7.13
 -53-




---



##### 



7.14. Termination of Certain Agreements.
 Stockholders Agreement Manager Management
Agreement Equity Agreement Section 3.01(a)
 7.15. Takeover Statutes.
  7.16. Stockholder and Other Claims.
 provided
 -54-




---



##### 



7.17. Stockholder Arrangements.
  7.18. Post-Closing Cooperation.
  7.19. No Redemption of Company Capital Stock.
  7.20. Transfer of Securities.
 Section 7.20 Section 7.20
 -55-




---



##### 



7.21. Unpaid Tax Refunds.
  ARTICLE 8
CONDITIONS TO THE CLOSING
 8.01. Conditions to Each Partys Obligations to Effect the Merger.
  provided
  8.02. Conditions to the Obligations of Sunrise and Merger Sub.
    -56-




---



##### 



provided however Section 8.02(a)(ii) provided further Article 10 Section
8.02(a)(ii) Article
10 provided further Sections 4.01 (Organization and Good Standing), 4.02
(Authorization), 4.05 (Acquired Companies), 4.06 (Capitalization), 4.14 (Compliance with Laws),
4.19 (Agreements with Affiliates), 4.29 (Required Vote), 4.33 (Takeover Statutes), 4.35 (Title to
Principal Stockholders Shares) 4.36 (Merger Consideration and Other Payment
Calculation Statement) Section 8.02(a)(ii)
  provided however Section 8.02(b) provided further Article 10 Section
8.02(b) Article
10
 Sections 4.03(a) (b) Section 5.03
  -57-




---



##### 



Sections 4.04(a) (b)
 Section 3.03
 Section 7.14
  Section 9.01
  Section 6.06
  -58-




---



##### 



8.03. Conditions to the Obligations of the Principal Stockholders.
   provided Section 5.01 Section 5.02 Section
8.03(a)(ii)
   Section 9.02
 ARTICLE 9
ADDITIONAL CLOSING DELIVERIES
 9.01. Deliveries by the Principal Stockholders and the Company.
   -59-




---



##### 



Section 8.02(a)
    Exhibit E-1 Exhibit E-2 Exhibit
E-3
 Section 7.12(a)
  Section 7.14
 Sections 4.03(a) (b)
 -60-




---



##### 



Section 9.01(n)
 Sections 4.04(a) (b)
 9.02. Deliveries by Sunrise and Merger Sub.
    Section 8.03(a)
 ARTICLE 10
INDEMNIFICATION
 10.01. General Indemnification.
 Sections 10.02 10.03 Sunrise Indemnified Party Sunrise Indemnified Parties
 Article 4 Section 8.02(a)
  -61-




---



##### 



Section
3.01(a)
    Section 3.08(c)
  Section 10.01(a)(x)
 Sections 10.02 10.03 Section 10.04(b)
 -62-




---



##### 



Article 4 Section 8.02(a)
  Sections 10.02 10.03 Principal Stockholder Indemnified Party Principal
Stockholder Indemnified Parties
 Article 5 Section 8.03(a)
  Article 10 Indemnified Party Article 10 Article 10 Indemnifying Party Notice of
Loss Section 10.02 Section 10.01 Section 10.01(e)
 -63-




---



##### 



Article 10.
 Third Party
Claim Section
10.02 Section 10.01 provided provided
 -64-




---



##### 



Section 10.01(e) Section 10.01(e)
 10.02. Survival.
 Section 10.02 Section 10.01(a)(i), (ii), (iv), (v), (vi),
(vii), (ix) and (x) Section 10.01(b)(i) and(ii) Section 10.01(c)(i) and (ii) Survival Period Article 10 Section 10.01(a)(i) Section 10.01(b)(i) Sections 4.06 (Capitalization), 4.35 (Title to the Principal Stockholders Shares) 4.36 (Merger Consideration and Other Payment Calculation Statement)
 10.03. Limitation on Liability.
 Section 10.03(e) Section 10.01(a)(i), (v), (vi), (vii) and (x) Section
10.01(b)(i) Section 7.10(c)
 -65-




---



##### 



Threshold Amount Section
10.01(a)(i), (v), (vi), (vii) and (x) Section 7.10(c) Section
10.01(b)(i) Section 10.03(b)
 Section 10.03(e) Section 10.01(a)(i), (ii), (iv), (v), (vi), (vii), (ix) and (x) Section
10.01(b)(i) and (ii) Indemnity Cap
 Section 10.03(f) Section 10.01(c)(i) Section 10.01(c)(i) Section 10.03(d)
 Section 10.03(f) Section 10.01(c)(i) and (ii)
 Section 10.03(a) Section
10.03(b) Sections 4.06 (Capitalization), 4.35 (Title to the
Principal Stockholders Shares) 4.36 (Merger Consideration and Other Payment
Calculation Statement) Section 10.01(a)(ii) Section 10.01(b)(ii) Section 7.10 Tax Matters Section
7.10(c) Article 4 Section 8.02(a) Section
10.01(a)(iii) and (viii)
 Section 10.03(c) Section
10.03(d) Article 5 Section 8.03(a) Section 10.01(c)(ii)
 Article
10
 Article 10
 -66-




---



##### 



Article 10 Tax Benefit
  Section 10.04(b)
 Article 10
 10.04. Payment.
 Article 10 Section 10.04(c) Section 10.05
  -67-




---



##### 



Article 10
  10.05. No Recourse.
  10.06. Effect of Knowledge on Indemnification.
  10.07. Remedies Exclusive.
 Section 12.12 Section 10.03(j) Article 10
 -68-




---



##### 



10.08. No Duplication of Claims.
 Article 10
 10.09. Characterization of Payments.
 Article 10
 ARTICLE 11
TERMINATION
 11.01. Termination.
   Termination Date provided however Section 5.03 Extended Termination Date Section 5.03 provided further Section 11.01(b)
 provided Section 11.01(c)
 -69-




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Section 8.02(a) Section
11.01(d)
 Section 8.03(a) provided Section 11.01(e)
 th
  -70-




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st
 11.02. Effect of Termination.
 Section 11.01, Section 11.02 (Effect of Termination) Section 12.03
(Expenses) Section 11.02 (Effect of
Termination) Section 12.03 (Expenses) provided provided further
 Section 11.01(g) (h) nd
 ARTICLE 12
MISCELLANEOUS
 12.01. Notices.
   
 -71-




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th
  
  
  
 -72-




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##### 



12.02. Amendments; No Waivers.
  -73-




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12.03. Expenses.
 Transfer Taxes
 12.04. Successors and Assigns; Benefit.
 provided Section 12.04
 12.05. Governing Law.
  -74-




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12.06. Resolution of Disputes.
 Litigation Section 12.01
 12.07. Severability.
  12.08. Table of Contents; Headings.
  -75-




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12.09. Counterparts; Effectiveness.
  12.10. WAIVER OF JURY TRIAL.
 EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.
 12.11. Entire Agreement.
  12.12. Specific Performance.
  12.13. Principal Stockholders Representative.
  -76-




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Successor Representative Section 12.13
   -77-




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Section 12.13
   12.14. No Third Party Beneficiary.
 Article 10 Third Party
Beneficiary Article 10 Article 10
 -78-




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Section 12.02 Article 10.
 [ signature pages follow ]
 -79-




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IN WITNESS WHEREOF,
 SUNRISE:
SUNRISE SENIOR LIVING, INC.By:
    /s/
Bradley B. RushName:
    Bradley B. RushTitle:
    Chief
Financial OfficerMERGER SUB:
SSLI-06 MERGER SUB, INC.By:
    /s/
Bradley B. RushName:
    Bradley B. RushTitle:
    Chief
Financial Officer




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##### 



KRG STOCKHOLDERS:
KRG CAPITAL FUND II, L.P.
KRG CAPITAL FUND II (FF), L.P.
KRG CAPITAL FUND II (PA), L.P.
By: KRG Capital Management, L.P., its general partnerBy: KRG Capital, LLC, its general partnerBy:
    /s/
Charles R. GwirtsmanName:
    Charles R. GwirtsmanTitle:

Managing
DirectorKRG CO-INVESTMENT, L.L.C.
By: Capital Resources Growth, Inc., its managing memberBy:
    /s/
Charles R. GwirtsmanName:
    Charles R. GwirtsmanTitle:
    PresidentPRINCIPAL STOCKHOLDERS REPRESENTATIVE:
KRG CAPITAL MANAGEMENT, L.P.
By: KRG Capital, LLC, its general partnerBy:

/s/
Charles R. GwirtsmanName:
    Charles R. GwirtsmanTitle:
    Managing
Director




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##### 



ACS STOCKHOLDER:
AMERICAN CAPITAL STRATEGIES, LTD.By:

/s/
Darin WinnName:
    Darin
WinnTitle:
    Senior
Vice President




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THE COMPANY:
TRINITY HOSPICE, INC.By:

/s/
Steve NeumannName:
    Steve
NeumannTitle:
    Vice
President




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ANNEX I
 DEFINITIONS
  2005 Trinity Balance Sheet Section 4.07
 2006 Budget
 Accounts Receivable
 Acquired Companies Annex II
 ACS Stockholder
 Affiliate
 Agreement
 Anti-Kickback Statute Section 4.28(f)
 Antitrust Law
 Appraisal Notice Section 7.01(b)
 Appraisal Shares Section 3.02
 Approvals




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Books and Records
 Business
 Business Day
 Certificate of Merger Section 2.02
 Certificates Section 3.05(c)
 Charter
 Charter Amendment
 Class I Preferred Stock
 Class I Preferred Stock Liquidation Value
 Class II Preferred Stock
 Class II Preferred Stock Liquidation Value
 Class A Common Stock
 Class A-1-A1 Preferred Liquidation Value
 Annex I - 2




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Class A-1-A1 Preferred Stock
 Class A-1-A2 Preferred Liquidation Value
 Class A-1-A2 Preferred Stock
 Class A-1-B1 Preferred Liquidation Value
 Class A-1-B1 Preferred Stock
 Class A-1-B2 Preferred Liquidation Value
 Class A-1-B2 Preferred Stock
 Class B Common Stock
 Class B-1 Preferred Liquidation Value
 Class B-1 Preferred Stock
 Closing Section 2.02
 Closing Date Section 2.02
 Closing Date Statement Section 3.08(b)
 Code
 Commercially Reasonable Efforts
 Annex I - 3




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Company
 Company Capital Stock
 Company Common Stock
 Company Preferred Stock
 Company Stock Option
 Confidential Information
 Confidentiality Agreement
 Contemplated Transactions
 Continuing Plans Section 7.09
 Contracts
 Controlled Group Section 4.12(c)
 Customer Contracts Section 4.16(a)
 Annex I - 4




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D&O Tail Premium
 Debt
 DGCL
 Disclosure Schedule
 DOJ Section 7.05(b)
 Effective Time Section 2.02
 Employee Handbook Section 4.17(c)
 Employee Related Payments Section I-5
 Environmental Laws
 Annex I - 5




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Environmental Permits
 Equity Agreement Section 7.14
 Equity Interests
 ERISA Section 4.12(a)
 Escrow Agent Section 3.01(b)
 Escrow Agreement Section 3.01(b)
 Escrow Amount Section 3.01(b)
 Estimated Working Capital Section 3.08(a)
 Exchange Fund Section 3.05(b)
 Existing Loans Section 4.31
 Extended Termination Date Section 11.01(b)
 Final Working Capital Section 3.08(b)
 Final Working Capital Payment Section 3.08(c)
 Financial Statements Section 4.07
 First Estimated Medicare Cap Liability Escrow Amount Section
3.09(a)
 FTC Section 7.05(b)
 GAAP
 Government Programs Section 4.28(a)
 Governmental Entity
 Annex I - 6




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Hazardous Substances
 HIPAA Section 4.28(c)
 HSR Act
 Indemnified Party Section 10.01(d)
 Indemnifying Party Section 10.01(d)
 Indemnity Cap Section 10.03(b)
 Indemnity Escrow Amount
 Independent Accountants
 Intellectual Property Rights
 Investment Advisers Act
 Investment Company Act
 June 2006 Trinity Balance Sheet Section 4.07
 Knowledge
 KRG II
 KRG II (FF)
 Annex I - 7




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KRG II (PA)
 KRG Co-Investment
 KRG Payments
 KRG Stockholder KRG Stockholders
 Law
 Leased Real Property Section 4.21(a)
 Leases Section 4.21(a)
 Lenders
 Liabilities
 Lien
 Litigation Section 12.06
 Losses
 Management Agreement Section 7.14
 Manager Section 7.14
 Material Adverse Effect provided however
 Annex I - 8




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Medicare Cap Liability
 Medicare Cap Liability Escrow Amount Section 3.09(b)
 Merger
 Merger Consideration Section 3.01(a)
 Merger Consideration and Other Payment Calculation Statement Section 3.01(f)
 Merger Sub
 Merger Sub Common Stock Section 3.04
 Mortgage Reserves
 Multiemployer Plan Section 4.12(e)
 New Disclosure Section 7.03(b)
 Nonsolicitation Agreement Section 7.11
 Notice of Loss Section 10.01(d)
 Operating Licenses
 Order
 Annex I - 9




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Ordinary Course of Business
 Other Tail Insurance Premiums
 Paying Agent Section 3.05(a)
 Permits
 Permitted Liens Section I-10
 Person
 Pre-Closing Partial Tax Period
 Pre-Closing Tax Period
 Prepayment Fees
 Prime Rate
 Principal Stockholder Principal Stockholders
 Annex I - 10




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Principal Stockholder Indemnified Party Principal Stockholder Indemnified
Parties Section 10.01(c)
 Principal Stockholders Representative
 Program
 Proposed Final Working Capital Section 3.08(b)
 Release Agreement Section 7.11
 Released
 Remediation
 Section 262 Section 3.02
 Securities Act
 Stark Law Section 4.28(d)
 Stock Option Plan Section 3.03(a)
 Stockholder
 Stockholder Approval Section 4.29
 Stockholder Charter Amendment Approval Section 4.05(b)
 Stockholders Agreement Section 7.14
 Straddle Period
 Strategic Transaction Section 7.13(a)
 Successor Representative Section 12.13(b)
 Sunrise
 Annex I - 11




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Sunrise Indemnified Party Sunrise Indemnified Parties Section 10.01(a)
 Sunrise Material Adverse Effect
 Sunrise Representatives Section 7.02
 Superior Proposal Section 7.13(b)
 Survival Period Section 10.02
 Surviving Corporation Section 2.01
 Takeover Statute Section 4.33
 Tax
 Tax Benefit Section 10.03(h)
 Tax Return
 Termination Date Section 11.01(b)
 Third Party Beneficiary Section 12.14
 Third Party Claim Section 10.01(e)
 Threshold Amount Section 10.03(a)
 Transaction Documents
 Annex I - 12




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Transaction Expenses
 Transfer Taxes Section 12.03
 Transmittal Letter Section 3.05(c)
 Trinity 401(k) Plan
 Trinity Balance Sheet Date Section 4.07
 Trinity Employees Section 4.12(a)
 Trinity Plan Section 4.12(a)
 Trinity Representatives Section 7.13(a)
 Working Capital Section
I-13
 Annex I - 13




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ANNEX II
 ACQUIRED COMPANIES