Document:

Ex 10.2 2012 Q2 10Q

        

Exhibit 10.2

FEDERAL HOME LOAN BANK OF CINCINNATI

Transitional Executive Long-Term Incentive Plan
Plan Document

FEDERAL HOME LOAN BANK OF CINCINNATI

Transitional Executive Long-Term Incentive Plan
	
			
	TABLE OF CONTENTS

	 
	 
	 

	 
	 
	Page

	1.0
	Plan Objectives
	1

	2.0
	Definitions
	1

	3.0
	Eligibility
	3

	4.0
	Target Award Opportunity
	3

	5.0
	Performance Measures
	3

	6.0
	Final Award Determination
	4

	7.0
	Administrative Control
	5

	8.0
	Miscellaneous Conditions
	5

	 
	 
	 

	Appendix – 2012 – 2014 Performance Period
	9

	 
	Performance Period
	10

	 
	Target Award Opportunity
	10

	 
	Initial Value of Performance Unit
	10

	 
	Participants
	10

	 
	Performance Measures & Final Value of Performance Unit
	11

	 
	Detailed Goals & Performance Measures
	11

FEDERAL HOME LOAN BANK OF CINCINNATI

Transitional Executive Long-Term Incentive Plan
PLAN DOCUMENT
Background
This Transitional Executive Long-Term Incentive Plan (LTIP) is intended to fill the “gap” in long-term incentive payments created by the adoption of the proposed Incentive Compensation Plan (ICP). Under the Deferred component of the ICP, potential payouts would not commence until 2016, creating a gap in long-term payments for Participants in the year 2015.  In order to prevent this unintended reduction in compensation due to changes in plan design, one more “transitional” LTIP (2012-2014) will be in effect to close the gap under the proposed ICP.

		
	1.0
	Plan Objectives

		
	1.1
	The purpose of the Federal Home Loan Bank of Cincinnati Executive Long-Term Incentive Plan (the “Plan”) is to achieve five objectives:

		
	1.1.1
	Promote the achievement of the Bank's long-term profitability and business goals;

		
	1.1.2
	Link executive compensation to specific long-term performance measures;

		
	1.1.3
	Provide a competitive reward structure for senior officers and other key employees; 

		
	1.1.4
	Provide a vehicle for closer Board involvement and communication with management regarding the Bank’s long-term strategic plans; and 

		
	1.1.5
	Promote loyalty and dedication to the Bank and its objectives. 

		
	1.2
	The Plan is a cash-based, long-term incentive plan which establishes individual Target Award Opportunities related to achievement of Bank performance over certain three-year Performance Periods.  

		
	1.3
	The Participants, the Target Award Opportunity, Performance Measures, value of a Performance Unit at the beginning and end of a Performance Period, and other relevant information are set forth in the attached Appendices.

		
	2.0
	Definitions

		
	2.1
	When used in this Plan, the words and phrases below shall have the following meanings:

1

2.1.1    Bank means the Federal Home Loan Bank of Cincinnati;
		
	2.1.2
	Target Award Opportunity means the award that may be earned during a Performance Period for achieving target performance levels under each Performance Measure;

2.1.3    Board means the Bank's Board of Directors;
		
	2.1.4
	Disabled means a Participant who (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank.  

		
	2.1.5
	Extraordinary Occurrences means those events that, in the opinion and discretion of the Board, are outside the significant influence of the Participants or the Bank and are likely to have a significant unanticipated effect, whether positive or negative, on the Bank’s operating and/or financial results, including, without limit, movement in interest rates, changes in financial strategies, or policies or significant change in Bank membership.

		
	2.1.6
	Final Award means the amount ultimately paid to a Participant under the Plan for a Performance Period.

		
	2.1.7
	Performance Measure means each performance factor that is taken into consideration under the Plan in determining the value of the Final Award.

		
	2.1.8
	Participant means an employee who participates in the Plan pursuant to Section 3.1.

		
	2.1.9
	Performance Period means a certain three-year period over which Bank performance is measured.

		
	2.1.10
	Performance Unit means a unit, the value of which shall be determined in accordance with the applicable Appendix.

		
	2.1.11
	Personnel Committee or Committee means the Personnel Committee of the Board.

2.1.12    Plan means this Executive Long-Term Incentive Plan.
		
	2.1.13
	Plan Award means an amount that is provisionally determined at the end of the Performance Period subject to adjustment as provided in Section 6.

2

2.1.14    President means the President of the Bank.
		
	3.0
	Eligibility

		
	3.1
	A Bank employee who is nominated by the President and approved by the Board may participate in the Plan.

		
	3.2
	Eligibility shall generally be limited to officers (i) whose functional responsibilities encompass the establishment of strategic direction and tactical action plans for the Bank, and (ii) who have received at least satisfactory rankings on annual performance reviews over a Performance Period.  Other employees may also be eligible to participate as defined by competitive compensation practices within the Bank's labor market.

		
	3.3
	Due to its unique role for the Bank and reporting relationship to the Board, the Director of Internal Audit will not be included as an eligible position under the Plan, but will be eligible for a similar plan administered by the Audit Committee of the Board.

		
	4.0
	Target Award Opportunity

		
	4.1
	At the beginning of each Performance Period, the Bank will provide a Target Award Opportunity to Participants.  The Target Award Opportunity is equal to a percentage of each Participant's annual base salary at the beginning of the Performance Period as described in the applicable Appendix.  Certain executive positions have a greater and more direct impact than others on the annual success of the Bank; therefore, these differences are recognized by varying award opportunities for each Participant level. 

		
	4.2
	Each Participant in a Performance Period shall be granted a number of Performance Units for that Performance Period determined by dividing the Target Award Opportunity by the value of a Performance Unit at the beginning of a Performance Period as described in the applicable Appendix.

		
	4.3
	There will be four levels of award opportunities:

		
	Level I:
	President

		
	Level II:
	Executive Vice Presidents

		
	Level III:
	Senior Vice Presidents

		
	Level IV:
	Vice Presidents

		
	5.0
	Performance Measures

		
	5.1
	Three achievement levels will be established for each Performance Measure:

		
	Threshold
	The minimum achievement level accepted for the Performance Measure.

3

		
	Target
	The planned achievement level for the Performance Measure.

		
	Maximum
	The achievement level for the Performance Measure that substantially exceeds the planned level of achievement.

		
	5.2
	At the beginning of each Performance Period, Performance Measures for a Performance Period and Performance Units and their initial values will be established by the Personnel Committee with Board approval.

		
	5.3
	When establishing Performance Measures, the Threshold level should reflect a 90 percent success rate; the Target level should reflect a 75 to 80 percent success rate; and the Maximum level should reflect a 10 to 15 percent success rate.

		
	6.0
	Final Award Determination

		
	6.1
	Plan Awards will be based on the achievement level for each of the three-year Performance Measures.  However, if the Bank fails to achieve the Threshold level for a Performance Measure,no award will be payable for that specific Performance Measure.  

		
	6.2
	A Participant’s Plan Award for a Performance Period equals the number of his or her Performance Units for that Performance Period multiplied by the value of a Performance Unit at the end of the Performance Period as determined in accordance with the applicable Appendix. 

		
	6.3
	In the event that a Federal Housing Finance Agency (FHFA) examination assigned to the Bank the lowest Composite Rating (as defined in the FHLBank Rating System) indicating the Bank has been found to be operating in an unacceptable manner, exhibits serious deficiencies in corporate governance, risk management or financial condition and performance, or in substantial noncompliance with laws, FHFA regulation or supervisory guidance in a Participant’s area of responsibility, the Participant will not be eligible for an award under the Plan for the Performance Period in which the lowest Composite Rating existed.

		
	6.4
	Promptly after a Performance Period, Plan Awards for the Performance Period shall be determined by the Board in its sole discretion based upon the Plan Award determined pursuant to Section 6.2.  

		
	6.5
	President’s Award.  In addition to the Plan Award, in determining a Participant’s Final Award, the Executive Vice President, Senior Vice Presidents, Vice Presidents and other employees (e.g., new hires and highly valued existing employees) may be nominated by the President for a discretionary allocation of Performance Units, to be approved by the Board, to recognize extraordinary performance and/or to address competitive compensation practices within the Bank’s labor market (the “President’s Award”).

		
	6.6 
	The value of a Performance Unit under the President’s Award will be equal to the value of a Performance Unit under the Target Award Opportunity.

4

		
	6.7
	For a Performance Period, the total value of Performance Units granted under the President’s Award shall not exceed ten (10) percent of the total Performance Units granted under the Target Award Opportunity.

		
	6.8
	The Board may also authorize the President to receive a discretionary allocation of Performance Units to recognize extraordinary performance and/or to address competitive compensation practices within the Bank’s labor market.  Any discretionary allocation of Performance Units granted to the President under this section will not exceed ten (10) percent of the total Performance Units granted to the President under the Target Award Opportunity.

		
	6.9
	A Participant’s Final Award will consist of his or her Plan Award plus any additional discretionary award granted under Section 6.5 or 6.8.

		
	7.0
	Administrative Control

		
	7.1
	The Bank's Director of Human Resources will assist, as requested, the President and the Committee in the administration of the Plan, however, the Board will have the ultimate authority over the Plan.

		
	7.2
	In addition to the authority expressly provided in the Plan, the Board shall have such authority in its sole discretion to control and manage the operation and administration of the Plan and shall have all authority necessary to accomplish these purposes, including, but not limited to, the authority to interpret the terms of the Plan, and to decide questions regarding the Plan and the eligibility of any person to participate in the Plan and to receive benefits under the Plan.  The Board’s determinations and interpretations regarding the Plan shall be final, binding, and conclusive.

		
	8.0
	Miscellaneous Conditions

		
	8.1
	Except as provided in Section 8.4, Participants must be employed by the Bank on the last day of the Performance Period in order to become eligible to receive a Final Award.  A Participant will not become vested in an award under this Plan until the date the Board authorizes the payment of the Participant’s Final Award.

		
	8.2
	In the event a Participant voluntarily or involuntarily terminates employment during the Performance Period, no award will be made to the Participant, except as provided in Section 8.4 below.

		
	8.3
	Employees of the Bank who are hired, transferred, or promoted into an eligible position during a Performance Period may be nominated for participation in the Plan in accordance with Section 3.1, and receive a prorated Target Award Opportunity.  

		
	8.4
	A Participant who retires, dies or becomes disabled during the Performance Period may receive a prorated Plan Award, but only if the President nominates and the Board approves such action.  For purposes of this Section, the term

5

“retires” means the Participant has (i) been employed with the Bank for at least five (5) years and (ii) reached at least age 62 when he or she retires from the Bank.  If a Participant becomes vested to receive a prorated award under this Section, the prorated Final Award will be paid to the Participant no later than 21⁄2 months following the calendar year in which such vesting occurred.  If a Participant terminates service with the Bank for any reason other than retirement, death, or disability during the Performance Period, the Participant will not be eligible to receive an award under the Plan.
		
	8.5
	The amount of any prorated award will be determined by dividing the number of months the Participant was employed by the Bank during the Performance Period by 36 and multiplying such quotient by the Plan Award.

		
	8.6
	If a Participant ceases employment after the Performance Period but before the Board approves the Final Award for that Performance Period, the President may nominate and the Board may approve the Participant to receive an award.  However, if the President fails to make such a recommendation or the Board fails to approve such action, the Participant will not be entitled to an award.

		
	8.7
	Notwithstanding any Plan provision to the contrary, mere participation in the Plan will not entitle a Participant to an award.

		
	8.8 
	The designation of an employee as a Participant in the Plan does not guarantee employment.  Nothing in this Plan shall be deemed (i) to give any employee or Participant any legal or equitable rights against the Bank, except as expressly provided herein or provided by law; or (ii) to create a contract of employment with any employee or Participant, to obligate the Bank to continue the service of any employee or Participant, or to affect or modify any employee's or Participant's term of employment in any way.

		
	8.9
	The right of the Bank to discipline or discharge a Participant shall not be affected by reason of any provision of this Plan.

		
	8.10
	All Final Awards will be paid out in cash and will be subject to applicable payroll tax withholdings.

		
	8.11
	No Final Award received by a Participant shall be considered as compensation under any employee benefit plan of the Bank, except as otherwise determined by the Bank.

		
	8.12
	Final awards will be paid no later than 2 1⁄2 months following the calendar year which the Participant became vested in the Final Award. 

		
	8.13
	The Board has the right to revise, modify, or terminate the Plan in whole or in part at any time or for any reason, and the right to modify any recommended award amount (including the determination of a greater or lesser award, or no award), for any reason, without the consent of any Participant.  Any payments under the Plan may be impacted by extraordinary events, a failure to meet certain minimum financial performance or control requirements and may be subject to a claw back provision.

6

Extraordinary events may include changes in business strategy, impact of severe economic fluctuations, significant growth or consolidation of the membership base or other factors that impact the Bank or Bank System. Any undue incentives paid to an officer of the Bank based on achievement of financial or operational goals within this Plan that subsequently are deemed to be inaccurate, misstated or misleading shall be recoverable from the officer by the Bank.  Inaccurate, misstated and/or misleading achievement of financial or operational goals includes, but is not limited to, overstated revenue, income, capital, return measures and/or understated credit risk, market risk, operational risk or expenses.  The value of any benefits delivered or accrued related to the undue incentive (the amount of the incentive over and above what should have been paid barring inaccurate, misstated and/or misleading achievement of financial or operational goals) shall be reduced and/or recovered by the Bank to the fullest extent possible.

		
	8.14
	Since no employee has a guaranteed right to any award under this Plan, any attempt by an employee to sell, transfer, assign, pledge, or otherwise encumber any anticipated award shall be void, and the Bank shall not be liable in any manner for or subject to the debts, contracts, liabilities, engagements or torts of any person who might anticipate an award under this program.

		
	8.15
	This Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Bank for payment of any award under this program.

		
	8.16
	The Plan shall be construed, regulated and administered in accordance with the laws of the state of Ohio, unless otherwise preempted by the laws of the United States.

		
	8.17
	If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed and enforced as if such provision had not been included herein.

		
	8.18 
	If a Participant dies before receiving his or her award, any amounts determined to be paid under this Plan shall be paid to the Participant’s surviving spouse, if any, or if none, to the Participant’s estate.  The Bank's determination as to the identity of the proper payee of any amount under this Plan shall be binding and conclusive and payment in accordance with such determination shall constitute a complete discharge of all obligations on account of such amount.  

		
	8.19
	Claims and Appeals Procedures.  A Participant (such Participant being referred to below as a “Claimant”) may deliver to the Personnel Committee a written claim for a determination with respect to any claim as to which the Personnel Committee has jurisdiction under this Plan.  If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant.  The claim must state with particularity the determination desired by the Claimant.

7

The Personnel Committee shall consider a Claimant's claim within a reasonable time, but no later than ninety (90) days after receiving the claim.  If the Personnel Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial ninety (90) day period.  Upon reaching its decision, the Personnel Committee shall notify the Claimant in writing.
On or before sixty (60) days after receiving a notice from the Personnel Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Committee a written request for a review of the denial of the claim.  The Committee shall render its decision on review promptly, in writing, and deliver it to the Claimant no later than sixty (60) days after it receives the Claimant’s written request for a review of the denial of the claim.
		
	8.20
	Any agreements or representations, oral or otherwise, express or implied, with respect to the subject matter of this Plan which are not contained herein will have no effect or enforceability.

8

APPENDICES            

9

FEDERAL HOME LOAN BANK OF CINCINNATI

Executive Long-Term Incentive Plan
APPENDIX
2012 – 2014 Performance Period
Performance Period
The Performance Period described in this Appendix shall be January 1, 2012 through December 31, 2014.
Target Award Opportunity
The Target Award Opportunity (as a percentage of January 1, 2012 base salary) for Levels I, II, III, and IV are:
	
		
	Level
	 

	I
	30%

	II
	25%

	III
	20%

	IV
	15%

                    
Initial Value of Performance Unit
The value of a Performance Unit at the beginning of this Performance Period equals $100.
Plan Participants:

The Participants for the 2012 – 2014 Performance Period are:

		
	Level
	 Title    

		
	I
	President & CEO

		
	II
	Executive Vice Presidents 

		
	III
	Senior Vice Presidents

		
	IV
	Vice Presidents

10

Performance Measures
		
	1.
	After the Performance Period ends, evaluate actual Bank performance against the Performance Measures stated below. 

Determine the value of the Performance Unit based on the minimum, target, and maximum awards for the Operating Efficiency, Risk Adjusted Profitability, Market Capitalization Ratio and Market Penetration achievements according to the following table below.  Performance will be measured on an interpolated basis between threshold through maximum.  
	
										
	 
	Threshold
	Target
	Maximum

	Operating Efficiency
	3rd Quartile
	2nd Quartile
	1st Quartile

	Dollar Value at Hurdles
	$
	50
	

	$
	100
	

	$
	150
	

	Weight
	0.30
	

	0.30
	

	0.30
	

	Operating Efficiency Value
	$
	15
	

	$
	30
	

	$
	45
	

	 
	 
	 
	 

	Risk Adjusted Profitability
	3rd Quartile
	2nd Quartile
	1st Quartile

	Dollar Value at Hurdles
	$
	50
	

	$
	100
	

	$
	150
	

	Weight
	0.30
	

	0.30
	

	0.30
	

	Risk Adjusted Profitability Value
	$
	15
	

	$
	30
	

	$
	45
	

	 
	 
	 
	 

	Market Capitalization Ratio
	95%
	100%
	110%

	Dollar Value at Hurdles
	$
	50
	

	$
	100
	

	$
	150
	

	Weight
	0.30
	

	0.30
	

	0.30
	

	Market Capitalization Ratio
	$
	15
	

	$
	30
	

	$
	45
	

	 
	 
	 
	 

	Market Penetration
	4.25
	%
	4.50
	%
	5.00
	%

	Dollar Value at Hurdles
	$
	50
	

	$
	100
	

	$
	150
	

	Weight
	0.10
	

	0.10
	

	0.10
	

	Market Penetration Value
	$
	5
	

	$
	10
	

	$
	15
	

	 
	 
	 
	 

	Total Value
	$
	50
	

	$
	100
	

	$
	150
	

	
				
	

Performance Measures
	Threshold
	Target
	Maximum

	OPERATING EFFICIENCY - Incentive Weight: 25%
Ranking of Operating Efficiency Ratio in comparison to other FHLBanks

	8th
	4th
	1st

	RISK ADJUSTED PROFITABILITY - Incentive Weight: 25%
Ranking of Risk Adjusted Profitability in comparison to other FHLBanks

	8th
	4th
	1st

	MARKET CAPITALIZATION RATIO - Incentive Weight: 25%
Ratio of Market Value of Equity (MVE) to Par Value of Regulatory Capital stock

	95%
	100%
	110%

	MARKET PENETRATION - Incentive Weight: 10%
Ratio of Member Advances to Member Assets in comparison to other FHLBanks
	3.50%
	3.70%
	4.00%

11RESTRICTED STOCK UNIT AGREEMENT

UNDER THE BROOKDALE SENIOR LIVING INC.

OMNIBUS STOCK INCENTIVE PLAN

This Restricted Stock Unit Agreement (this "Agreement"), dated as of [_________ __, 20__] (the "Date of Grant"), is made by and between Brookdale Senior Living Inc., a Delaware corporation (the "Company"), and [_________________] (the "Participant" or "you") pursuant to the terms of the Brookdale Senior Living Inc. Omnibus Stock Incentive Plan (as amended and/or restated from time to time, the "Plan").

1.      Terms and Conditions.  The Plan is hereby incorporated by reference and made a part hereof.  This Agreement and the restricted stock units granted hereby are subject to all the terms and conditions of the Plan.  All capitalized terms not defined herein shall have the meaning ascribed to them in the Plan.  If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control unless this Agreement explicitly states that an exception to the Plan is being made.

2.      Grant of Restricted Stock Units.  The Company hereby grants to the Participant [____________] restricted stock units, subject to all of the terms and conditions of this Agreement and the Plan.

3.      Vesting and Payout.  The restricted stock units shall be fully vested upon the Date of Grant.  The restricted stock units will be payable within thirty (30) days (with the date of payment elected by the Company in its sole discretion) following your termination of service as a director due to your (i) retirement or resignation from the Board, (ii) death or (iii) total and permanent disability, provided that such termination constitutes a "Separation from Service" under Section 1.409A-1(h) of the Treasury Regulations promulgated under Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), or, if later, upon the first date that payment may be made without violating the requirements of Section 409A of the Code, including, but not limited to, the circumstances described in Section 19 of this Agreement.

4.      Change in Control.  Notwithstanding any other provision of this Agreement, in the event a Change in Control of the Company occurs prior to the payment date provided for in Section 3, the restricted stock units will be payable within ten (10) days (with the date of payment determined by the Company in its sole discretion) of the closing date of the Change in Control.  Such payment shall be made in cash or stock of the continuing entity, as determined by the Company in its sole discretion.  For purposes of payments made pursuant to this Section 4, a "Change in Control" shall mean a "a change in the ownership of the Company," a "change in the effective control of the Company" or "a change in the ownership of a substantial portion of the assets of the Company" as such terms are defined in Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under Section 409A of the Code, rather than the definition set forth in the Plan.

5.      Nontransferability.  The restricted stock units awarded pursuant to this Agreement cannot be sold, assigned, pledged, hypothecated, transferred, or otherwise encumbered prior to payment.

6.      Stockholder Rights; Dividend Units.  With respect to the awarded restricted stock units, you are not a stockholder and do not have any voting rights.  You will, however, receive notional dividend units on the awarded units equal to the amount of dividends paid on the Company's common stock.  Notional dividends paid on your restricted stock units will be accumulated in a bookkeeping account without interest until the payment of the underlying restricted stock units is made under paragraph 3 or 4.

7.      Settlement of Restricted Stock Units.  Except as provided in paragraph 4, vested restricted stock units will be paid to you in whole shares of the Company's common stock.  Partial shares, if any, and dividend units will be paid in cash.

 

8.      Adjustments.  Pursuant to Section 5 of the Plan and in accordance with Section 409A of the Code, in the event of a change in capitalization as described therein, the Administrator shall make such equitable and proportionate changes or adjustments, as it deems necessary or appropriate, in its discretion, to the number and kind of securities or other property (including cash) issued or issuable in respect of outstanding restricted stock units.

9.      Payment of Taxes.  You acknowledge and agree that you are responsible for the tax consequences associated with the award and vesting of units.  It is the intention of the Company that this award not be subject to the additional tax set forth in Section 409A of the Code, and the regulations and guidance promulgated thereunder, and the award shall be interpreted so as to comply with the requirements of such Section.  Notwithstanding anything to the contrary herein, to the extent that any provision of this award would become subject to the additional tax of Section 409A of the Code, such provision shall be deemed null and void.  By accepting this award, you agree that in the event that amendment of this award is required in order to comply with Section 409A of the Code, you shall cooperate in good faith with the Company with respect to amending the award, provided that the Company shall not be required to assume any increased economic burden in connection with any such amendment.

10.      Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

11.      Governing Law.  This Agreement shall be governed by and construed according to the laws of the State of Delaware without regard to its principles of conflict of laws.

12.      Amendments; Construction.  The Administrator may amend the terms of this Agreement prospectively or retroactively at any time and in accordance with Section

 

409A of the Code, but no such amendment shall impair the rights of the Participant hereunder without his or her consent.  Headings to Sections of this Agreement are intended for convenience of reference only, are not part of this Agreement and shall have no effect on the interpretation hereof.

13.      Survival of Terms.  This Agreement shall apply to and bind the Participant and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors.

14.      Agreement Not a Contract for Services.  Neither the Plan, the granting of the restricted stock units, this Agreement nor any other action taken pursuant to the Plan shall constitute or be evidence of any agreement or understanding, express or implied, that the Participant has a right to continue to provide services as an officer, director, employee, consultant or advisor of the Company or any Subsidiary or Affiliate for any period of time or at any specific rate of compensation.

15.      Authority of the Administrator.  The Administrator shall have full authority to interpret and construe the terms of the Plan and this Agreement.  The determination of the Administrator as to any such matter of interpretation or construction shall be final, binding and conclusive.

16.      Representations.  The Participant has reviewed with the Participant's own tax advisors the Federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement, including the application of Section 409A of the Code.  The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  The Participant understands that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement, including tax liability imposed under Section 409A of the Code.

17.      Severability.  Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Agreement.  Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such unenforceable provision, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by such judicial body shall not affect the enforceability of such provision or provisions in any other jurisdiction.

18.      Acceptance.  The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement.  The Participant has read and understands the terms and provisions of the Plan and this Agreement, and accepts the restricted stock units subject

 

to all the terms and conditions of the Plan and this Agreement.  The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Agreement.

19.      Section 409A.  Notwithstanding anything to the contrary in this Agreement or an accompanying election form executed by the Participant, if (i) on the date of the Participant's Separation from Service with the Company the Participant is a "specified employee" (as such term is defined under Section 1.409A-1(i) of the Treasury Regulations promulgated under Section 409A of the Code) of the Company and (ii) any payments to be provided to the Participant pursuant to this Agreement are or may become subject to the additional tax under Section 409A(a)(1)(B) of the Code, or any other taxes or penalties imposed under Section 409A of the Code if provided at the time otherwise required under this Agreement, then such payments shall be delayed until the date that is six months after the date of the Participant's Separation from Service from the Company, or if earlier, his or her death.  Any payments delayed pursuant to this paragraph shall be made in a lump sum on the first day of the seventh month following the Participant's Separation from Service, or if earlier, the Participant's death.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the day and year first above written.

	
 

	
BROOKDALE SENIOR LIVING INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Name:

	
W.E. Sheriff

	
 

	
 

	
Title:

	
Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[Name of Participant]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Participant

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00207-of-00352.parquet"}]]