Document:

exv10w5

Exhibit 10.5

AVIV REIT, INC.

2010 MANAGEMENT INCENTIVE PLAN

AWARD NOTICE

[                                        ]

[                                        ]

[                                        ]

[                                        ]

          You have been granted an Option to purchase shares of the common stock, $0.01 par value per
share (“Common Stock”), of Aviv REIT, Inc. (the “Company”), pursuant to the terms and
conditions of the Aviv REIT, Inc. 2010 Management Incentive Plan (the “Plan”) and the Stock
Option Agreement (together with this Award Notice, the “Agreement”). Copies of the Plan
and the Stock Option Agreement are attached hereto. Capitalized terms not defined herein shall
have the meanings specified in the Plan or the Agreement.

	 	 	 

	Option:

	 	You have been awarded a Nonqualified Stock Option to purchase from the
Company [l] shares of its Common Stock, subject to adjustment as
provided in Section 3.4 of the Agreement.
	 
	 	 
	Grant Date:

	 	[                                        ]
	 
	 	 
	Exercise Price:

	 	$[l] per share, subject to adjustment as provided in Section 3.4 of
the Agreement.
	 
	 	 
	Type of Award:

	 	Nonlimited Performance-Based Award
	 
	 	 
	Vesting Schedule:

	 	The Option shall become fully vested on the date of a Liquidity Event if the
Performance Target is attained on such date; provided that, you do not
experience a Termination prior to such date.
	 
	 	 
	Exercise Schedule:

	 	Subject to Section 2.2 of the Agreement, the Option shall be exercisable to
the extent that the Option is vested.
	 
	 	 
	Expiration Date:

	 	N/A

Aviv REIT, Inc.

By:                                                             

Name: [                                        ]

Title: [                                        ]

Award Notice — Management Incentive Plan

 

 

Acknowledgment, Acceptance and Agreement:

By signing below and returning this Award Notice to Aviv REIT, Inc. at the address stated herein, I
hereby acknowledge receipt of the Agreement and the Plan, accept the Option granted to me and agree
to be bound by the terms and conditions of this Award Notice, the Agreement and the Plan.

                                                            

Participant

                                                            

Date

AVIV REIT, INC.

303 WEST MADISON STREET, SUITE 2400

CHICAGO, IL 60606

ATTENTION: [                    ]

 

 

AVIV REIT, INC.

2010 MANAGEMENT INCENTIVE PLAN

STOCK OPTION AGREEMENT

          Aviv REIT, Inc., a Maryland corporation (the “Company”), hereby grants to the
individual (the “Participant”) named in the award notice (the “Award Notice”)
attached to this Stock Option Agreement (this “Agreement”) as of the date set forth in the
Award Notice (the “Grant Date”), pursuant to the provisions of the Aviv REIT, Inc. 2010
Management Incentive Plan (the “Plan”), an option to purchase from the Company the number
of shares of common stock, $0.01 par value per share (“Common Stock”), set forth in the
Award Notice at the price per share set forth in the Award Notice (the “Exercise Price”)
(the “Option”), upon and subject to the terms and conditions set forth below, in the Award
Notice and in the Plan. Capitalized terms not defined herein shall have the meanings specified in
the Plan.

          1. Option Subject to Acceptance of Agreement. The Option shall be null and void
unless the Participant shall accept this Agreement by executing the Award Notice in the space
provided therefor and returning an original execution copy of the Award Notice to the Company.

          2. Time and Manner of Exercise of Option.

          2.1. Maximum Term of Option. If designated in the Award Notice as an Incentive Stock
Option or a Nonqualified Stock Option which is a Limited Performance-Based Award, in no event may
the Option be exercised, in whole or in part, after the expiration date set forth in the Award
Notice (the “Expiration Date”).

          2.2. Vesting and Exercise of Option. The Option shall become vested in accordance
with the vesting schedule set forth in the Award Notice (the “Vesting Schedule”) and shall
become exercisable in accordance with the exercise schedule set forth in the Award Notice (the
“Exercise Schedule”). In the event of the Participant’s Termination for any reason, the
Option shall be vested only to the extent it is vested on the effective date of the Participant’s
Termination and may thereafter be exercised by the Participant until and including the earliest to
occur of (i) the date which is 30 days after the effective date of the Participant’s Termination
and (iii) the Expiration Date, if applicable.

          2.3. Method of Exercise. Subject to the limitations set forth in this Agreement, a
vested Option may be exercised by the Participant (i) by giving written notice to the Company
specifying the number of whole shares of Common Stock to be purchased and accompanying such notice
with payment therefor in full either (A) in cash, (B) authorizing the Company to withhold whole
shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value,
determined as of the date of exercise, equal to the amount necessary to satisfy such obligation,
provided that the Administrator determines that such withholding of shares does not cause the
Company to recognize an increased compensation expense under applicable accounting principles or
(C) any combination of (A) or (B) and (ii) by executing such documents as the Administrator may
reasonably request. In the case of clause

 

 

(B) above, any fraction of a share of Common Stock which would be required to pay such
exercise price shall be disregarded and the remaining amount due shall be paid in cash by the
Participant. No shares of Common Stock shall be issued and, if applicable, no certificate
representing Common Stock shall be delivered until the full exercise price therefor and any
withholding taxes thereon, as described in Section 3.3, have been paid.

          2.4. Time of Exercise. The Option may be exercised by the Participant with respect to
all or a portion of the number of shares of Common Stock with respect to which the Option is then
vested.

          2.5. Termination of Option. In no event may the Option be exercised after it
terminates as set forth in this Section 2.5. The Option shall terminate, to the extent not
earlier terminated pursuant to Section 2.2 or exercised pursuant to Section 2.3, on
the Expiration Date, if applicable, or the date determined by the Board in accordance with
Section 3.1 of the Plan. Upon the termination of the Option, the Option and all rights
hereunder shall immediately become null and void.

          2.6. Dividend Equivalents. During the period a Participant’s Option, or portion
thereof, remains unexercised, the Participant shall be eligible to receive the applicable Dividend
Equivalents in accordance with Section 2.1(d) of the Plan. The Participant shall not be
entitled to any further payments of such Dividend Equivalents following the date such Option ceases
to be exercisable as set forth in this Agreement.

          3. Additional Terms and Conditions of Option.

          3.1. Nontransferability of Option. The Option may not be transferred by the
Participant other than by will or the laws of descent and distribution or pursuant to the
designation of one or more beneficiaries in such form as may be required by the Administrator
consistent with the transfer restrictions contained in the Company’s Charter. Except to the extent
permitted by the foregoing sentence, (i) during the Participant’s lifetime the Option is
exercisable only by the Participant or the Participant’s legal representative, guardian or similar
person and (ii) the Option 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, encumber or otherwise dispose of the Option, the Option and all rights hereunder shall
immediately become null and void.

          3.2. Investment Representation. The Participant hereby represents and covenants that
(a) any shares of Common Stock purchased upon exercise of the Option will be purchased for
investment and not with a view to the distribution thereof within the meaning of the Securities Act
of 1933, as amended (the “Securities Act”), unless such purchase has been registered under
the Securities Act and any applicable state securities laws; (b) any subsequent sale of any such
shares shall be made either pursuant to an effective registration statement under the Securities
Act and any applicable state securities laws, or pursuant to an exemption from registration under
the Securities Act and such state securities laws; and (c) if requested by the Company, the
Participant shall submit a written statement, in a form satisfactory to the Company, to the effect
that such representation (x) is true and correct as of the date of any

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purchase of any shares hereunder or (y) is true and correct as of the date of any sale of any
such shares, as applicable. As a further condition precedent to any exercise of the Option, the
Participant shall comply with all regulations and requirements of any regulatory authority having
control of or supervision over the issuance or delivery of the shares and, in connection therewith,
shall execute any documents which the Board or the Administrator shall in its sole discretion deem
necessary or advisable.

          3.3. Withholding Taxes.

          (a) As a condition precedent to the issuance of Common Stock upon exercise of the
Option, the Participant shall, upon request by the Company, pay to the Company in addition
to the aggregate Exercise Price of the shares, such amount as the Company 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 such exercise of the Option. If the Participant shall fail to advance the Required Tax
Payments after request by the Company, the Company may, in its discretion, deduct any
Required Tax Payments from any amount then or thereafter payable by the Company to the
Participant.

          (b) The Participant may elect to satisfy his or her obligation to advance the Required
Tax Payments by any of the following means: (1) a cash payment to the Company, (2)
authorizing the Company to withhold whole shares of Common Stock which would otherwise be
issued to the Participant upon exercise of the Option having an aggregate Fair Market Value,
determined as of the Tax Date, equal to the Required Tax Payments or (3) any combination of
(1) and (2). The Company shall have sole discretion to disapprove of an election pursuant
to clause (2) or (3). Shares of Common Stock to be delivered or withheld may not have a
Fair Market Value in excess of the minimum amount of the Required Tax Payments. Any
fraction of a share of Common Stock which would be required to satisfy any such obligation
shall be disregarded and the remaining amount due shall be paid in cash by the Participant.
No certificate representing a share of Common Stock shall be issued or delivered until the
Required Tax Payments have been satisfied in full.

          3.4. Adjustment. In the event of any stock split, stock dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or
other similar change in capitalization or event, or any distribution to holders of the Company’s
Common Stock other than a regular cash dividend, the number and type of securities subject to the
Option and the Exercise Price shall be appropriately adjusted by the Administrator, such adjustment
to be made without an increase in the aggregate purchase price. The decision of the Administrator
regarding any such adjustment shall be final, binding and conclusive. If any such adjustment would
result in a fractional security being subject to the Option, the Company shall pay the Participant,
in connection with the first exercise occurring after such adjustment, an amount in cash determined
by multiplying (i) the fraction of such security (rounded to the nearest hundredth) by (ii) the
difference, if any, between (A) the Fair Market Value on such date and (B) the Exercise Price of
the Option.

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          3.5. Liquidity Event. In the event of a Liquidity Event, if the Option is a
Time-Based Award, then it shall immediately become vested and exercisable in full.

          3.6. Compliance with Applicable Law. The Option is subject to the condition that if
the listing, registration or qualification of the shares subject to the Option upon any securities
exchange or under any law, or the consent or approval of any governmental body, or the taking of
any other action is necessary or desirable as a condition of, or in connection with, the purchase
or issuance of shares hereunder, the Option may not be exercised, in whole or in part, and such
shares may not be issued, unless such listing, registration, qualification, consent, approval or
other action shall have been effected or obtained, free of any conditions not acceptable to the
Company. The Company agrees to use reasonable efforts to effect or obtain any such listing,
registration, qualification, consent, approval or other action.

          3.7. Issuance or Delivery of Shares. The shares of Common Stock subject to the Option
may be held by a custodian in book entry form with the restrictions on such shares duly noted or,
alternatively, the Company may hold the certificate or certificates representing such shares, in
either case until the Option has been exercised. Upon the exercise of the Option, in whole or in
part, the Company shall issue or deliver, subject to the conditions of this Article 3, the
number of shares of Common Stock purchased against full payment therefor. Such issuance shall be
evidenced by removal of such restrictions from those of such shares that are held in book entry
form, and, if applicable, the Company shall deliver to the Participant any certificate or
certificates representing those of such shares that are held by the Company and destroy or return
to the Participant the stock power or powers relating to such shares. If such stock power or
powers also relate to unvested shares of Common Stock, then the Company may require, as a condition
precedent to the delivery of any certificate pursuant to this Section 3.7, the execution
and delivery to the Company of one or more irrevocable stock powers relating to such unvested
shares. The Company shall pay all original issue or transfer taxes and all fees and expenses
incident to such issuance, except as otherwise provided in Section 3.3.

          3.8. Option Confers No Rights as Stockholder. The Participant shall not be entitled
to any privileges of ownership with respect to shares of Common Stock subject to the Option unless
and until such shares are purchased and issued upon the exercise of the Option, in whole or in
part, and the Participant becomes a stockholder of record with respect to such issued shares. The
Participant shall not be considered a stockholder of the Company with respect to any such shares
not so purchased and issued. As a condition to the exercise of the Option, the Participant shall,
concurrently with the exercise of the Option, also execute the Stockholders Agreement, unless the
Participant has already executed the Stockholders Agreement.

          3.9. Option Confers No Rights to Continued Employment or Service. In no event shall
the granting of the Option or its acceptance by the Participant, or any provision of this Agreement
or the Plan, give or be deemed to give the Participant any right to continued employment or service
with AAM or any of its Affiliates.

          3.10. Designation of Option. If designated in the Award Notice as an Incentive Stock
Option, this Option is intended to qualify as an Incentive Stock Option as defined in section 422
of the Code. To the extent the Option is exercised pursuant to its terms after the period set
forth in section 422(a) of the Code or exceeds the limitation set forth in section 422(d)

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of the Code (currently $100,000) or otherwise does not meet the requirements for an incentive
stock option under section 422 of the Code, the Option shall not be treated as an incentive stock
option under Section 422.

          3.11. Initial Public Offering. The Participant hereby agrees that in the event of an
Initial Public Offering, the Participant shall not offer, sell, contract to sell, pledge,
hypothecate, grant any option to purchase or make any short sale of, or otherwise dispose of any
shares of stock of the Company or any rights to acquire stock of the Company for such period of
time from and after the effective date of such registration statement as may be established by the
underwriter for such Initial Public Offering. The foregoing limitation shall not apply to shares
registered in the Initial Public Offering under the Securities Act.

          4. Miscellaneous Provisions.

          4.1. Decisions of Administrator. The Administrator shall have the right to resolve
all questions which may arise in connection with the Option or its exercise. Any interpretation,
determination or other action made or taken by the Administrator regarding the Plan or this
Agreement shall be final, binding and conclusive.

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

          4.3. Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company, to Aviv REIT, Inc., 303 West Madison Street, Suite
2400, Chicago, Illinois 60606, Attention: Steven J. Insoft, Chief Financial Officer, and if to the
Participant, to the Participant’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 mail 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.

          4.4. Partial Invalidity. The invalidity or unenforceability of any particular
provision of this Agreement shall not effect the other provisions hereof and this Agreement shall
be construed in all respects as if such invalid or unenforceable provisions were omitted.

          4.5. Governing Law. This Agreement, the Option 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 Maryland and construed in accordance
therewith without giving effect to conflicts of laws principles.

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          4.6. Counterparts. The Award Notice 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.

          4.7. Agreement Subject to the Plan. This Agreement is subject to the provisions of
the Plan, and shall be interpreted in accordance therewith. The Participant hereby acknowledges
receipt of a copy of the Plan, and by signing and returning the Award Notice to the Company, at the
address stated herein, he or she agrees to be bound by the terms and conditions of this Agreement,
the Award Notice and the Plan.

          4.8. Code Section 409A.

          (a) This Agreement is intended to be excepted from or comply with, as applicable, the
requirements of section 409A of the Code, and shall be interpreted and construed consistent with
that intent. Notwithstanding such intention, the Administrator may, at any time and in its sole
discretion and without a Participant’s prior consent, amend this Agreement, adopt policies and
procedures, or take any other actions (including amendments, policies, procedures and actions with
retroactive effect) as are necessary or appropriate to (i) exempt this Agreement from the
application of section 409A of the Code, (ii) preserve the intended tax treatment of any such
award, or (iii) comply with the requirements of section 409A of the Code, including without
limitation any such regulations guidance, compliance programs and other interpretive authority that
may be issued after the date of grant.

          (b) Participants (or their beneficiaries) shall be responsible for all taxes with respect to
any awards under the Plan. The Administrator and the Company make no guarantees to any person
regarding the tax treatment of awards or payments made under the Plan. Neither the Administrator
nor the Company has any obligation to take any action to prevent the assessment of any additional
tax or penalty on any Participant with respect to any award under section 409A of the Code or
otherwise and none of the Company, any of its Subsidiaries or Affiliates, or any of their employees
or representatives shall have any liability to a Participant with respect thereto.

6exv10w6

Exhibit 10.6

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. 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.

          3. Vesting and Value of Class D Units.

          3.1. Vesting.

          (a) The Award shall vest with respect to 15% of the number of Class D Units subject to the
Award on each of December 31, 2010, 2011, 2012 and 2013, 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 4.2, 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.

          3.2. Value. As determined by the General Partner, the gross value of the Partnership
on the Grant Date is $[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”).

          4. Rights as a Class D Unitholder.

          4.1. 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

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after any distributions to other partners of the Partnership as may be required under the
Partnership Agreement.

          4.2. 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 3.1(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 3.1(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 3.1(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 4.2, 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.

          5. Additional Terms and Conditions of Award.

          5.1. 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.

          5.2. 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.

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          5.3. 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.

          5.4. 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.

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

          6. Miscellaneous Provisions.

          6.1. 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.

          6.2. 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: [                    ]

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.

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          6.3. 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.

          6.4. 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.

          6.5. 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.

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5

 

          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

 

 

Accepted this ____ day of           ,      

                                                            

[                    ]

Class D Unit Award Agreement

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