Document:

exv10w7

Exhibit 10.7

AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

CLASS D UNIT AWARD AGREEMENT

          Aviv Healthcare Properties Limited Partnership, a Delaware limited partnership (the
“Partnership”), hereby grants to [                    ] (the “Holder”) as of            [l],       (the “Grant
Date”) a restricted unit award (the “Award”) of [l] Class D Units (“Class D Units”), as
defined in the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as
of September 17, 2010, among the Partners of the Partnership as such agreement may be amended from
time to time (the “Partnership Agreement”), upon and subject to the restrictions, terms and
conditions set forth below. Capitalized terms not defined herein shall have the meanings specified
in the Partnership Agreement.

          1. Award Subject to Acceptance of Agreement. The Award shall be null and void unless
the Holder shall accept (a) this Class D Unit Award Agreement (this “Agreement”) and (b) all of the
terms and conditions of the Partnership Agreement, including, without limitation, the power of
attorney granted in Section 2.4 of the Partnership Agreement, in each case by executing this
Agreement in the space provided below and returning it to the Partnership.

          2. Substitution for and Conversion of Outstanding Award. The Award has been granted
to the Holder in substitution for the Holder’s restricted unit award of Class D Units which was
granted to the Holder on August 9, 2005 (the “Outstanding Award”). By accepting the Award, the
Holder acknowledges that, as of the Grant Date, (i) the Holder shall have no further rights of any
kind with respect to the Outstanding Award, including but not limited to any payment rights or
rights to receive any units (or other securities in respect thereof), whether deemed vested or
unvested under the Outstanding Award, pursuant to the award agreement which evidenced the
Outstanding Award or otherwise and (ii) the Class D Units granted pursuant to the Outstanding Award
shall be deemed canceled and of no further force or effect. By granting the Award, the Partnership
is converting the Outstanding Award agreement on the date of the Holder’s acceptance of this
Agreement in accordance with Section 1 (the “Acceptance Date”) and the Holder shall, upon the
Partnership’s request, promptly return the Outstanding Award agreement for cancellation on the
Acceptance Date. Such conversion and cancellation of the Outstanding Award agreement shall be
effective on the Acceptance Date regardless of whether the Holder returns the Outstanding Award
agreement.

          3. Rights as the Holder. The Holder shall have no rights with respect to any Class D
Units awarded hereunder until the Holder has satisfied the terms of this Agreement and any other
requirement imposed on Partners by applicable law, the Partnership Agreement or any other agreement
among the Partners.

          4. Vesting and Value of Class D Units.

          4.1. Vesting.

          (a) The Award shall vest with respect to 20% of the number of Class D Units subject to the
Award on December 31, 2010 and 40% of the number of Class D Units subject to 

 

 

the Award on December
31, 2011, subject to the Holder’s continuous employment with any of the General Partner, Aviv Asset
Management, L.L.C. (“AAM”), the Partnership, the Operating Partnership or any Affiliate of the
Partnership through the applicable vesting date.

          (b) In connection with an Initial Public Offering, the Award shall vest with respect to 40% of
the number of Class D Units subject to the Award on the Lockup Expiration Date and after taking
into account the conversion contemplated by Section 5.2, subject to the Holder’s continuous
employment with any of the General Partner, AAM, the Partnership, the Operating Partnership or any
Affiliate of the Partnership through the applicable vesting date. For purposes of this Agreement,
(i) the term “Initial Public Offering” means an initial public offering of shares of common stock
of the General Partner under the Securities Act, and (ii) the term “Lockup Expiration Date” means
the day following the date on which any lockup agreement entered into by directors or senior
employees of the General Partner with the underwriters of such Initial Public Offering expires,
after taking into account any extension of such agreement in accordance with the terms thereof;
provided, that, to the extent any such lockup agreements have differing expiration
dates, the Lockup Expiration Date shall be determined with reference to the lockup agreement
executed by the Holder or, if the Holder does not execute a lockup agreement, the lockup agreement
executed by the chief executive officer of the General Partner (without, in each case, taking into
account any waivers by the underwriters to allow partial sales of common stock prior to the
expiration of any such lockup).

          (c) Any portion of the Class D Units that has not become vested pursuant to this section on or
prior to the occurrence of a (i) a Partnership Control Transaction, (ii) any transaction, or series
of related transactions, resulting in any Change in Control or, if equity securities other than
common stock and Series A Preferred Stock of the General Partner are outstanding, more than 50% of
the value of the outstanding equity of the General Partner or a merger or consolidation of the
General Partner (other than mergers or consolidations that do not result in a Change in Control),
(iii) a sale of more than 50% of the value of the partnership units of the Operating Partnership,
as determined by the General Partner, (iv) an Asset Sale or a direct or indirect disposition of all
or substantially all of the assets of the General Partner or the Operating Partnership or (v) a
Liquidating Event (each a “Fundamental Transaction”), shall become immediately vested upon such
occurrence, subject to the Holder’s continuous employment with any of the General Partner, AAM, the
Partnership, the Operating Partnership or any Affiliate of the Partnership through the applicable
vesting date. For purposes of this Agreement, a “Change in Control” means the acquisition by any
one person or more than one person acting as a group of more than 50% of the outstanding shares of
common stock of the General Partner; provided that a Change in Control shall not be deemed
to occur as a result of the acquisition of shares of common stock of the General Partner by any
person or persons that hold shares of common stock of the General Partner at the time of the
Initial Public Offering.

          (d) Any portion of the Class D Units that has not become vested pursuant to this Section on or
prior to the date the Holder is no longer employed for any reason by the General Partner, AAM, the
Partnership, the Operating Partnership or any Affiliate of the Partnership shall be forfeited and
shall not thereafter become vested.

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          4.2. Value. As determined by the General Partner, the gross value of the Partnership
on the grant date of the Outstanding Award was $[l] (the “Grant Date Partnership Value”).
The Class D Units awarded hereunder that have vested shall be eligible to share in proceeds from
the Partnership upon the occurrence of a Fundamental Transaction, but only to the extent such
proceeds exceed the sum of (i) the Grant Date Partnership Value and (ii) the gross value (as
reflected on the books of the Partnership) of any additional properties acquired by or contributed
to the Partnership after such grant date, as determined by the General Partner (the total of such
sum, the “Base Value”).

          5. Rights as a Class D Unitholder.

          5.1. Subject to Partnership Agreement. A holder of vested Class D Units (a “Class D
Unitholder”) has the right to receive certain distributions, if any, made with respect to such
Class D Units by the Partnership pursuant to Section 5.2(b) of the Partnership Agreement (such
distributions are provided for upon the occurrence of an Asset Sale or a Liquidating Event). A
Class D Unitholder shall be entitled to receive distributions (as determined in accordance with the
Partnership Agreement) with respect to his or her vested Class D Units only to the extent that the
aggregate proceeds received by the Partnership exceed the Base Value, and after any distributions
to other partners of the Partnership as may be required under the Partnership Agreement.

          5.2. In Connection With an Initial Public Offering.

          (a) On the date of the consummation of an Initial Public Offering, any Class D Units which
have not become vested in accordance with Section 4.1(a) on or prior to such date shall be
converted into an economically equivalent number of restricted common limited partner interests in
the Partnership or a successor partnership or shares of restricted common stock of the General
Partner, which restricted partner interests or shares shall become vested and unrestricted on the
earlier of (i) the date or dates on which such Class D Units would have vested in accordance with
Section 4.1(a) or, if later, the Lockup Expiration Date and (ii) a Change in Control, in each case
subject to the Holder’s continuous employment with the General Partner or any Affiliate of the
General Partner through the applicable vesting date.

          (b) On the date of the consummation of an Initial Public Offering, any Class D Units which
have become vested in accordance with Section 4.1(a) on or prior to such date shall be converted
into an economically equivalent number of restricted common limited partner interests in the
Partnership or a successor partnership or shares of restricted common stock of the General Partner
which shall become unrestricted on the Lockup Expiration Date.

          (c) In the event that any Class D Units are converted into common limited partner interests in
the Partnership or a successor partnership or shares of common stock of the General Partner
(restricted or unrestricted) pursuant to this Section 5.2, the Holder shall have no further rights
with respect to the Class D Units or any distributions or any other rights as a holder of interests
in the Partnership. The number of such common limited partner interests or shares of common stock
(and the terms thereof and the rights associated therewith) into which the Class D
Units are converted shall be determined by the General Partner, which determination shall be
final and binding.

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          6. Additional Terms and Conditions of Award.

          6.1. Nontransferability of Award. The Class D Units awarded hereunder may not be
sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by
operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any
attempt to so sell, transfer, assign, pledge, hypothecate or encumber, or otherwise dispose of such
Class D Units, the Award shall immediately become null and void. All Class D Units shall be
subject to the restrictions and conditions on transferability set forth in the Partnership
Agreement or in any other agreement among the Partners.

          6.2. Withholding Taxes. The Holder shall, upon request by the General Partner, pay to
the Partnership such amount of cash as AAM or the Partnership may be required, under all
applicable federal, state, local or other laws or regulations, to withhold and pay over as income
or other withholding taxes (the “Required Tax Payments”) with respect to the Award. If the Holder
shall fail to advance the Required Tax Payments after request by the General Partner, the
Partnership may, in its discretion, deduct any Required Tax Payments from any amount then or
thereafter payable by the Partnership to the Holder.

          6.3. Award Confers No Rights to Continued Employment. In no event shall the granting
of the Award or its acceptance by the Holder give or be deemed to give the Holder any right to
continued employment by the General Partner, AAM, the Partnership, the Operating Partnership or any
Affiliate of the Partnership.

          6.4. Decisions of the General Partner. The General Partner shall have the right to
resolve all questions which may arise in connection with the Award. Any interpretation,
determination or other action made or taken by the General Partner regarding this Agreement shall
be final, binding and conclusive.

          6.5. Agreement Subject to the Partnership Agreement. This Agreement is subject to the
provisions of the Partnership Agreement and shall be interpreted in accordance therewith.

          7. Miscellaneous Provisions.

          7.1. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the General Partner, AAM, the Partnership, the General Partner and any
person or persons who shall, upon the death of the Holder, acquire any rights hereunder in
accordance with this Agreement.

          7.2. Notices. All notices, requests or other communications provided for in this
Agreement shall be made:

If to the Partnership, to:

Aviv Healthcare Properties Limited Partnership

303 West Madison Street, Suite 2400

Chicago, IL 60606

Attn: [                    ]

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Facsimile: (312) 855-1684

And if to the Holder, to the Holder’s address set forth in the Partnership’s records.

     All notices, requests or other communications provided for in this Agreement shall be made in
writing either (a) by personal delivery to the party entitled thereto, (b) by facsimile with
confirmation of receipt, (c) by mailing in the United States mails to the last known address of the
party entitled thereto or (d) by express courier service. The notice, request or other
communication shall be deemed to be received upon personal delivery, upon confirmation of receipt
of facsimile transmission, or upon receipt by the party entitled thereto if by United States mail
or express courier service; provided, however, that if a notice, request or other
communication is not received during regular business hours, it shall be deemed to be received on
the next succeeding business day of the Partnership.

          7.3. Governing Law. This Agreement, the Award and all determinations made and actions
taken pursuant hereto and thereto, to the extent not otherwise governed by the laws of the United
States, shall be governed by the laws of the State of Delaware and construed in accordance
therewith without giving effect to conflicts of laws principles.

          7.4. Arbitration. Any dispute or controversy between the General Partner, AAM or the
Partnership and the Holder, whether arising out of or relating to this Agreement, the breach of
this Agreement, or otherwise, shall be settled by arbitration in Chicago, Illinois, administered by
the American Arbitration Association, with any such dispute or controversy arising under this
Agreement being so administered in accordance with its Commercial Rules then in effect, and
judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The arbitrator shall have the authority to award any remedy or relief that a court of
competent jurisdiction could order or grant. Except as necessary in court proceedings to enforce
this arbitration provision or an award rendered hereunder, neither a party nor an arbitrator may
disclose the existence, content or results of any arbitration hereunder without the prior written
consent of the General Partner, AAM, the Partnership and the Holder. The General Partner, AAM, the
Partnership and the Holder acknowledge that this Agreement evidences a transaction involving
interstate commerce. Notwithstanding any choice of law provision included in this Agreement, the
United States Federal Arbitration Act shall govern the interpretation and enforcement of this
arbitration provision.

          7.5. Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the each of the undersigned has executed and delivered this Class D Unit
Award Agreement as of the day and year first written above.

	 	 	 	 	 	 	 

	 	 	AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	By: Aviv REIT, Inc., its general partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Craig Bernfield
	 	 
	 

	 	Title:
	 	Chief Executive Officer and President	 	 
	 
	 	 	 	 	 	 
	 	 	AVIV ASSET MANAGEMENT, L.L.C.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Aviv Healthcare Properties Limited Partnership,

its sole member	 	 
	 
	 

	 	By:
	 	Aviv REIT, Inc., its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Craig Bernfield	 	 
	 

	 	Title:
	 	Chief Executive Officer and President	 	 

Class D Unit Award Agreement (Existing Holder)

 

 

Accepted this ____ day of           ,      

                                                            

[                    ]

Class D Unit Award Agreement (Existing Holder)exv10w8

Exhibit 10.8

Execution Version

AMENDED AND RESTATED

PHANTOM PARTNERSHIP UNIT AWARD AGREEMENT

          This Amended and Restated Phantom Partnership Unit Award Agreement (this “Agreement”), to be
effective immediately following consummation of the Merger (as defined below), is entered into by
and among Aviv Asset Management, L.L.C., a Delaware limited liability company (the “Company”),
Steven J. Insoft, an individual (the “Holder”), and Aviv Healthcare Properties Limited Partnership,
a Delaware limited partnership and the surviving entity upon consummation of the Merger (the
“Surviving Partnership” or “Aviv Healthcare”). The Company granted to Holder a phantom partnership
unit award (“Prior Award”) pursuant to that certain Phantom Partnership Unit Award Agreement (the
“Prior Phantom Agreement”), by and between the Company and the Holder, dated as of November 1,
2007, measured by reference to the Class C Units of Aviv Healthcare Properties Limited Partnership,
a Delaware limited partnership (the “Predecessor Partnership”). On the date hereof, the
Predecessor Partnership has been merged (the “Merger”) with and into Aviv Healthcare Merger Sub LP,
a Delaware limited partnership (“Merger Sub”), with Merger Sub continuing as the Surviving
Partnership. In connection with the settlement, on the date hereof, of a portion of such Prior
Award pursuant to that certain Assignment of Limited Partner Interests, Consent and Admission of
Substituted Limited Partner, by and among the Company, the Holder and certain other persons (the
“Settlement Agreement”), the Company and the Holder desire to amend and restate, as of September
17, 2010, the Prior Phantom Agreement as set forth herein to provide that the Prior Award shall be
measured by reference to the Class C Units of the Surviving Partnership and be subject to the
restrictions, terms and conditions set forth below. Capitalized terms not defined herein shall
have the meanings specified in the Amended and Restated Agreement of Limited Partnership of the
Surviving Partnership, dated September 17, 2010, among the partners of Aviv Healthcare, as amended
from time to time (the “LP Agreement”).

          1. Agreement Subject to Acceptance. This Agreement, which amends and restates the
Prior Phantom Agreement, shall be null and void unless the Holder shall accept this Agreement by
executing it in the space provided below and returning it to the Company. By accepting this
Agreement, the parties hereto acknowledge that the Prior Phantom Agreement is superseded in its
entirety by this Agreement and shall have no further force or effect.

          2. Phantom Partnership Units. Subject to adjustment pursuant to Section 5.3, the
Company has granted to the Holder three (3) phantom partnership units (each a “Unit”, collectively
“the Units”), each of which shall have a value as of any date equal to the then Fair Market Value
of one percent (1%) of the outstanding Class C Units of Aviv Healthcare (the “Award” and, together
with the Prior Award, the “Awards”). “Fair Market Value” for all purposes of this Agreement shall
be reasonably determined by the General Partner in good faith. Such determination shall be
conclusive and binding on all parties hereto. The parties hereto acknowledge that under the Prior
Phantom Agreement, Holder was entitled to five (5) Units, two (2) of which have been settled
pursuant to the Settlement Agreement and the remainder of which are outstanding and subject to this
Agreement.

 

          3. Vesting.

          3.1. Vesting Upon Continued Employment. Except as provided in Section 3.3 hereof, and
subject to adjustment pursuant to Section 5.3, the Award shall vest with respect to one (1) Unit
(i.e., one-third of the Units subject to the Award as of the date hereof) on each of
December 31, 2010, December 31, 2011 and December 31, 2012, provided the Holder remains in
continuous employment with the Company through the applicable vesting date.

          3.2. Forfeiture of Unvested Units Upon Termination of Employment. Upon the
termination of the Holder’s employment with the Company for any reason, the Units which are not
vested as of the effective date of the Holder’s termination of employment shall be forfeited by the
Holder and such portion of the Award shall be cancelled by the Company.

          3.3. Acceleration of Vesting Following Change in Control. All outstanding Units
subject to the Award shall become fully vested if at any time following a Change in Control the
authority over the day to day management of the Company is not exercised, directly or indirectly,
by Craig M. Bernfield. A “Change in Control” shall mean:

     (i) the consummation of a merger or consolidation of Aviv Healthcare with or
into another entity or any other reorganization, if more than 50% of the combined
voting power of the continuing or surviving entity’s shares or interests outstanding
immediately after such merger, consolidation or other reorganization is owned by
persons who were not Partners or other equity holders of Aviv Healthcare immediately
prior to such merger, consolidation or reorganization; or

     (ii) the sale, transfer or other disposition of all or substantially all of the
assets of Aviv Healthcare, if more than 50% of the combined voting power of the
acquiring entity’s shares or interests outstanding immediately after such sale,
transfer or other disposition is owned by persons who were not Partners or other
equity holders of Aviv Healthcare immediately prior to such sale, transfer or other
disposition.

          4. Payment in Respect of Phantom Partnership Units.

          4.1. Payment of Earnings.

          (a) If the Holder becomes vested with respect to a Unit on December 31, 2010, the Surviving
Partnership shall pay to the Holder on or before January 31, 2011, an amount equal to one percent
(1%) of the earnings distributed to the Class C Unitholders during 2010, and such Unit shall be
settled on December 31, 2010 in accordance with Section 4.2(b)(i).

          (b) If the Holder becomes vested with respect to a Unit on December 31, 2011, the Surviving
Partnership shall pay to the Holder: (i) on or before January 31, 2012, an amount equal to one
percent (1%) of the earnings distributed to the Class C Unitholders during 2011; and (ii) during
the period beginning January 1, 2012 and ending on the Settlement Date, an amount equal to one
percent (1%) of the earnings distributed to the Class C Unitholders, at the time payments are made
to the Class C Unitholders during such period..

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          (c) If the Holder becomes vested with respect to a Unit on December 31, 2012, the Surviving
Partnership shall pay to the Holder: (i) on or before January 31, 2013, an amount equal to one
percent (1%) of the earnings distributed to the Class C Unitholders during 2012; and (ii)
notwithstanding and in substitution of any obligations after January 1, 2013 to make any payments
pursuant to subparagraph 4.1(b)(ii) above, during the period beginning January 1, 2013 and ending
on the Settlement Date, an amount equal to two percent (2%) of the earnings distributed to the
Class C Unitholders, at the time payments are made to the Class C Unitholders during such period.

          (d) Any payment to be made to the Holder pursuant to this Section 4.1 shall be paid out of the
earnings that would otherwise have been distributed pursuant to the LP Agreement to the Class C
Unitholders whose Class C Units are subject to (and only to the extent such Class C Units are so
subject to) this Agreement pursuant to Section 5 (Phantom Unit Award Agreement) of that certain
Assignment of Limited Partner Interests, Consent and Admission of Additional Limited Partner, dated
as of the date hereof, among Aviv Healthcare, L.L.C., Craig M. Bernfield C Unit, L.L.C., Zev
Karkomi Revocable Trust U/A/D 2/17/84 and the other parties thereto.

          4.2. Settlement of Award.

          (a) As of the Settlement Date, as defined in subparagraph 4.2(b) below, the Surviving
Partnership shall deliver or cause to be delivered to the Holder a percentage of outstanding Class
C Units equal to the number of Units then held by the Holder; provided that, in lieu of delivering
Class C Units, the Surviving Partnership, in its sole discretion, may elect to make a cash payment
to the Holder in an amount equal to the Fair Market Value of such Class C Units. Upon the
settlement of the Award pursuant to this Section 4.2, the Holder shall have no further right to any
payments with respect to the Units or the Award pursuant to Section 4.1 or otherwise.

          (b) For purposes of this Agreement, the “Settlement Date” shall be:

     (i) With respect to the Unit which vests on December 31, 2010, December 31,
2010; and

     (ii) With respect to the Units which vest on December 31, 2011 and December 31,
2012, January 1, 2018;

provided, however, that either the Company or the Holder may elect to defer either
or both of the Settlement Dates described in subparagraphs 4.2(b)(ii) and (iii) above at any time
by written notice to the other party, provided that such election shall not be effective unless it
(A) is received by the other party at least one year prior to the previously scheduled Settlement
Date, (B) does not take effect for 12 months after it is received by the other party and (C)
extends the Settlement Date by at least five years. Notwithstanding the foregoing, if and to the
extent that any Units subject to this Award become vested as a result of Section 3.3 hereof, then
the Settlement Date with respect to such Units shall be, in the case of Units which become vested
on or prior to the date which is 12 months following the date hereof, the date on which such Units

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become vested, and, in the case of Units which become vested more than 12 months following the date
hereof, January 1, 2018.

          4.3. Payments to the Holder. Notwithstanding anything to the contrary contained
herein, any payments or distributions, whether in cash or otherwise, made to the Holder, or his
successors or assigns, in respect of the Units pursuant to the terms of this Agreement, the
Settlement Agreement and/or the LP Agreement, shall be paid or distributed solely out of the
amounts otherwise distributable to the Class C Unitholders pursuant to the terms of the LP
Agreement and, for the avoidance of doubt, in no event shall any such payments or distributions be
paid or distributed to the Holder, or his successors or assigns, out of amounts otherwise
distributable to the holders of equity interests in the Partnership other than the Class C
Unitholders.

          5. Additional Terms and Conditions of Award.

          5.1. Nontransferability of Award. No rights with respect to the Units may be
transferred by the Holder other than by will, the laws of descent and distribution or pursuant to
beneficiary designation procedures approved by the Company. Except to the extent permitted by the
foregoing, no rights hereunder may be sold, transferred, assigned, pledged, hypothecated,
encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to
execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge,
hypothecate or encumber, or otherwise dispose of such rights, the Award shall immediately become
null and void.

          5.2. Withholding Taxes. The payment of any amount hereunder or, in the case of
employment taxes, the vesting of any amount hereunder shall be subject to all requirements of the
law with regard to income and employment withholding taxes, filings, and making of reports, and the
Company and the Holder shall use their best efforts to satisfy promptly all such requirements.

          5.3. Adjustment. In the event of a share or other equity interest dividend, share or
other equity interest split, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares or other equity interests, liquidation, spin-off, distribution to holders of
Class C Units other than a regular cash distribution or other change in organizational structure
affecting Class C Units (including any conversion of Aviv Healthcare to a corporation, whether by
merger, filing of a certificate of conversion or otherwise), then the number and class of
securities subject to the Award and the number and class of securities scheduled to vest as of any
date shall be appropriately adjusted by the Company; provided that any such adjustment shall reduce
and dilute the ownership interests only of the persons who hold Class C Units immediately prior to
the transaction resulting in such adjustment. The decision of the Company regarding any such
adjustment shall be final, binding and conclusive.

          5.4. Award Confers No Rights to Continued Employment. In no event shall the granting
of the Award or its acceptance by the Holder give or be deemed to give the Holder any right to
continued employment by the Company or any Affiliate of the Company.

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          5.5. Decisions of Company. The Company shall resolve in good faith all questions
which may arise in connection with the Award. Any interpretation, determination or other action
made or taken by the Company regarding this Agreement shall be final, binding and conclusive.

          6. Miscellaneous Provisions.

          6.1. Rights as a Member; Irrevocable Proxy. The Holder shall have no rights as a
Partner with respect to any Units subject to this Agreement unless and to the extent that Class C
Units are delivered to the Holder pursuant to Section 4.2. Without limiting the generality of the
foregoing, the Holder shall have no right to vote or otherwise consent with respect to any Units
subject to this Agreement. In the event that Class C Units are delivered to the Holder, and with
respect to the Class C Units delivered to the Holder pursuant to the Settlement Agreement, the
Holder hereby appoints (i) Craig M. Bernfield, with full power of substitution, the true and lawful
proxy, agent and attorney-in-fact of the Holder, with full power and authority in the Holder’s
name, place and stead, to vote 50% of such Class C Units in such manner as such proxy, agent and
attorney-in-fact or his substitute may deem appropriate, in his sole and absolute discretion and
(ii) Zev Karkomi Revocable Trust U/A/D 2/17/84, with full power of substitution, the true and
lawful proxy, agent and attorney-in-fact of the Holder, with full power and authority in the
Holder’s name, place and stead, to vote the remaining 50% of such Class C Units in such manner as
such proxy, agent and attorney-in-fact or his substitute may deem appropriate, in his sole and
absolute discretion. Such power to vote includes the power to execute, or refrain from executing,
a consent to action in lieu of a meeting with respect to such Class C Units. The Holder hereby
authorizes and empowers each such proxy, agent and attorney-in-fact or his substitute (i) to
represent and vote for the Holder at all such meetings of the holders of Class C Units or limited
partners of Aviv Healthcare, (ii) to consent to and waive notice of all such meetings, (iii) to
execute, swear to, acknowledge and file all ballots, consents, approvals, waivers, certificates and
other instruments appropriate or necessary, in the sole discretion of such proxy, agent and
attorney-in-fact or his substitute, to make, evidence, give, confirm or ratify any vote, consent,
approval, agreement or other action and (iv) generally and without limitation to do any and all
acts and things which the Holder if personally present might or could do in respect of such Class C
Units, and the Holder hereby ratifies and confirms all that such proxy, agent and attorney-in-fact
or his substitute may lawfully do or cause to be done. The foregoing power of attorney is hereby
declared to be irrevocable and a power coupled with an interest and it shall survive and not be
affected by the subsequent incapacity of the Holder or the transfer of all or any portion of such
Class C Units and shall extend to the Holder’s heirs, successors, assigns and personal
representatives. All Class C Units delivered to the Holder shall be subject to the terms and
conditions of the LP Agreement. Each of Craig M. Bernfield and Zev Karkomi Revocable Trust U/A/D
2/17/84 is an intended third-party beneficiary of this Section 6.1 and shall be entitled to
directly enforce its provisions against the Holder to the same extent as if it were a signatory
hereto, and Holder shall not assert any defenses or objections based on Craig M. Bernfield and Zev
Karkomi Revocable Trust U/A/D 2/17/84 not being signatories hereto.

          6.2. Accounting for Units. The Units shall be credited by the Company to a
bookkeeping account on behalf of the Holder, and neither the Company nor the Surviving Partnership
shall be obligated to set aside any assets to satisfy its obligations hereunder. The

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Holder shall have no secured legal or equitable rights, interest or claims in any property or
assets of the Company or the Surviving Partnership. Neither the assets of the Company nor the
Surviving Partnership shall be held under any trust for the benefit of the Holder, or his heirs,
successors or assigns, or held in any way as collateral security for the fulfilling of the
obligations of the Company or the Surviving Partnership, respectively, under this Agreement. Any
and all of the Surviving Partnership’s and the Company’s assets shall be, and remain, the general,
unpledged, unrestricted assets of the Surviving Partnership and the Company, respectively. Both
the Surviving Partnership’s and the Company’s obligations under this Agreement shall be that of an
unfunded and unsecured promise to pay property or cash in the future.

          6.3. Meaning of Certain Terms. As used herein, the term “vest” shall mean no longer
subject to forfeiture. As used herein, employment by the Company shall include employment by an
Affiliate of the Company.

          6.4. At-Will Employment; Effect of Termination of Employment. The Holder acknowledges
and understands that, unless he has a written agreement with the Company that provides otherwise,
the Holder is an “at will” employee who may terminate his employment at any time; that the Company
may terminate the Holder’s employment at any time with or without cause or may condition the
Holder’s continued employment on the satisfaction of such conditions as the Company may impose from
time to time; and that the effect of any termination of employment will be to terminate the vesting
of any unvested Units.

          6.5. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and the Surviving Partnership and any person or persons who
shall, upon the death of the Holder, acquire any rights hereunder in accordance with this
Agreement.

          6.6. Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company or the Surviving Partnership, to Aviv Asset Management,
L.L.C., 303 West Madison Street, Suite 2400, Chicago, Illinois 60606, Attention: Craig M.
Bernfield, President and Chief Executive Officer, and if to the Holder, to the Holder’s address set
forth in the Company’s records. All notices, requests or other communications provided for in this
Agreement shall be made in writing either (a) by personal delivery to the party entitled thereto,
(b) by facsimile with confirmation of receipt, (c) by mailing in the United States mails to the
last known address of the party entitled thereto or (d) by express courier service. The notice,
request or other communication shall be deemed to be received upon personal delivery, upon
confirmation of receipt of facsimile transmission, or upon receipt by the party entitled thereto if
by United States mail or express courier service; provided, however, that if a notice, request or
other communication is not received during regular business hours, it shall be deemed to be
received on the next succeeding business day of the Company.

          6.7. Governing Law. This Agreement, the Award and all determinations made and actions
taken pursuant hereto and thereto, to the extent not otherwise governed by the laws of the United
States, shall be governed by the laws of the State of Delaware and construed in accordance
therewith without giving effect to conflicts of laws principles.

6

 

          6.8. Compliance With Section 409A of the Internal Revenue Code. This Agreement is
intended to comply with Section 409A of the Internal Revenue Code (the “Code”), and shall be
interpreted and construed accordingly. The Holder acknowledges that the Company has encouraged him
to consult his own adviser to determine the tax consequences of the Award. The Holder (or his
beneficiaries) shall be responsible for all taxes with respect to any Awards under this Agreement.
The Surviving Partnership and the Company make no guarantees to any person regarding the tax
treatment of the Awards or payments made hereunder. Neither the Surviving Partnership nor the
Company has any obligation to take any action to prevent the assessment of any excise tax on any
person with respect to any Award under Section 409A of the Code or otherwise and none of the
Surviving Partnership, the Company, any of their subsidiaries or Affiliates, or any of their
employees or representatives shall have any liability to the Holder (or his beneficiaries) with
respect thereto.

          6.9. Termination of Award. The Company and the Holder may terminate the Award by
mutual agreement and accelerate the payments hereunder to the maximum extent permitted by Section
409A of the Code.

          6.10. Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

[signature page follows]

7

 

	 	 	 	 	 
	 	COMPANY:
AVIV ASSET MANAGEMENT, L.L.C.

By: AVIV HEALTHCARE PROPERTIES LIMITED

       PARTNERSHIP, its Sole Member

By: AVIV REIT, INC., its General Partner

 	 
	 	By:  	/s/ Craig M. Bernfield
 	 
	 	 	Name:  	Craig M. Bernfield 	 
	 	 	Title:  	Chief Executive Officer and President 	 

	 	 	 	 	 
	 	PARTNERSHIP:

AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP

By: AVIV REIT, INC., its General Partner

 	 
	 	By:  	/s/ Craig M. Bernfield
 	 
	 	 	Name:  	Craig M. Bernfield 	 
	 	 	Title:  	Chief Executive Officer and President 	 

	 	 	 	 	 
	 	HOLDER:

Accepted this 17th day of September,
2010.

 	 
	 	/s/ Steven J. Insoft
 	 
	 	Steven J. Insoft 	 
	 	 	 
	 

SIGNATURE PAGE TO AMENDED
AND RESTATED

PHANTOM PARTNERSHIP UNIT AWARD AGREEMENT

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