Document:

exv10w50

 

Exhibit 10.50

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (the “Agreement”) is made as of March 13, 2008, by SUNRISE SENIOR
LIVING, INC., a Delaware corporation (the “Company”), SUNRISE SENIOR LIVING MANAGEMENT, INC., a
Virginia corporation, SUNRISE SENIOR LIVING INVESTMENTS, Inc., a Virginia corporation, SUNRISE
DEVELOPMENT INC., a Virginia corporation, SUNRISE SENIOR LIVING SERVICES, INC., a Delaware
corporation, (together with the Company, the “Loan Parties” and each a “Loan Party”) and BANK OF
AMERICA, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer (the
“Administrative Agent”) for itself and certain additional lenders who are or shall be from time to
time participating as lenders pursuant to the Credit Agreement as hereinafter defined (collectively
with the Administrative Agent, the “Lenders”).

RECITALS

     A. The Lenders have made a Credit Facility available to the Company in the maximum principal
sum at any one time outstanding of $250,000,000 (the “Loan”).

     B. The Credit Facility is governed by a Credit Agreement dated December 2, 2005 as amended by
that certain First Amendment to Credit Agreement dated March 6, 2006, that certain Second Amendment
to Credit Agreement dated January 31, 2007, that certain Third Amendment to Credit Agreement dated
June 27, 2007, that certain Fourth Amendment to Credit Agreement dated September 17, 2007, that
certain Fifth Amendment to Credit Agreement dated January 31, 2008, that certain Sixth Amendment to
Credit Agreement dated February 19, 2008 and that certain Seventh Amendment to Credit Agreement
dated of even date herewith (as amended, modified, substituted, extended and renewed from time to
time the “Credit Agreement”) by and between the Company and the Lenders. Unless otherwise
expressly defined in this Agreement, terms defined in the Credit Agreement shall have the same
meaning under this Agreement.

     C. The Company and the Lenders have agreed to modify the delivery deadlines for certain
financial statements and waive delivery of certain other financial statements required under the
terms of the Credit Agreement.

     D. As a condition precedent to the agreements referenced above, the Lenders required that this
Agreement be executed and delivered to the Administrative Agent for the benefit of the Lenders.

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises, the mutual agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Loan Party agrees as follows:

 

 

ARTICLE I

COLLATERAL

     As security for the payment of all of the obligations evidenced by the Loan Documents and for
each Loan Party’s performance of, and compliance with, all of the terms, covenants, conditions,
stipulations and agreements contained in the Loan Documents and all other obligations of each Loan
Party to the Administrative Agent and the Lenders, whether now existing or hereafter created,
whether direct or contingent (collectively, the “Obligations”), each Loan Party hereby grants to
the Administrative Agent, for its benefit and for the benefit of the Lenders and agrees that the
Administrative Agent shall have a perfected, continuing security interest in all of the following
property and assets of each Loan Party, wherever situated (the “Collateral”):

          (a) All accounts and contract rights (other than contract rights related to management
agreements), chattel paper, instruments and documents, both now owned and hereafter created or
acquired (individually, an “Account” and collectively, the “Accounts”); and

          (b) All general intangibles (including, without limitation, all books and records, things in
action, contractual rights, tax returns, goodwill, literary rights, rights to performance,
copyrights, trademarks and patents but excluding membership interests and partnership interests
held by any Loan Party), both now owned and hereafter acquired; and

          (c) All notes, notes receivable, drafts, acceptances and similar instruments and documents,
both now owned and hereafter created or acquired; and

all proceeds (cash and non-cash) and products thereof, and all returned, rejected or repossessed
goods, the sale or lease of which shall have given or shall give rise to an Account and all cash
and non-cash proceeds and products of all such goods. Each Loan Party further agrees that the
Administrative Agent, for its benefit and for the benefit of the Lenders, shall have in respect
thereof all of the rights and remedies of a secured party under the Virginia Uniform Commercial
Code as well as those provided in this Agreement. Each Loan Party covenants and agrees to execute
and deliver such financing statements and other instruments and filings as are necessary in the
opinion of the Administrative Agent to perfect such security interest. Notwithstanding the fact
that the proceeds of the Collateral constitute a part of the Collateral, the Loan Parties may not
dispose of the Collateral, or any part thereof, other than in the ordinary course of its business
or as otherwise may be permitted by this Agreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     Each Loan Party represents and warrants to the Administrative Agent and Lenders that:

     Section 2.1 Place(s) of Business and Location of Collateral.

     Each Loan Party warrants that the address of the Loan Parties’ chief executive office is as
specified in Exhibit A attached hereto and made a part hereof and that the address of each
other place of business of the Loan Parties, if any, is as disclosed to the Lenders in Exhibit
A. The Collateral and all books and records pertaining to the Collateral are and will be
located at the

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address indicated on Exhibit A. Each Loan Party will immediately advise the
Administrative Agent in writing of any change in the location of the places where the Collateral,
or any part thereof, or the books and records concerning the Collateral, or any part thereof, are
kept. The proper and only place to file financing statements with respect to the Collateral within
the meaning of the Uniform Commercial Code is the Delaware Secretary of State.

     Section 2.2 Title to Properties.

     Each Loan Party has good and marketable title to all of its properties, including the
Collateral, and the Collateral is free and clear of mortgages, pledges, liens, charges and other
encumbrances other than those specified on Exhibit B attached hereto and made a part hereof (the
“Permitted Liens”).

     Section 2.3 Patents and Trademarks.

     Each Loan Party owns or possesses all of the patents, trademarks, service marks, trade names,
copyrights and licenses and all rights with respect thereto necessary for the present and planned
future operation of its business, without any conflict with the rights of any other person.

     Section 2.4 Business Names and Addresses.

     In the five (5) years preceding the date hereof, no Loan Party has conducted business under
any name other than its current name nor conducted its business in any jurisdiction other than
those disclosed on Exhibit A.

ARTICLE III

AFFIRMATIVE COVENANTS OF LOAN PARTIES

     Until payment in full and the performance of all of the Obligations hereunder, each Loan Party
shall:

     Section 3.1 Maintenance of the Collateral.

     Not permit anything to be done to the Collateral which may impair the value thereof. The
Administrative Agent, or an agent designated by the Administrative Agent, shall be permitted to
enter the premises of each Loan Party and the Subsidiaries and examine, audit and inspect the
Collateral at any reasonable time and from time to time without notice. The Lenders shall not have
any duty to, and each Loan Party hereby releases the Lenders from all claims of loss or damage
caused by the delay or failure to collect or enforce any of the Accounts or to, preserve any rights
against any other party with an interest in the Collateral.

     Section 3.2 Other Liens, Security Interests, etc.

     Keep the Collateral free from all liens, security interests and claims of every kind and
nature, other than the security interest granted to the Administrative Agent, for its benefit and
the benefit of the Lenders pursuant to this Agreement and the Permitted Liens.

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     Section 3.3 Defense of Title and Further Assurances.

     At its expense defend the title to the Collateral (or any part thereof), and promptly upon
request execute, acknowledge and deliver any financing statement, renewal, affidavit, deed,
assignment, continuation statement, security agreement, certificate or other document the
Administrative Agent may require in order to perfect, preserve, maintain, protect, continue and/or
extend the lien or security interest granted to the Administrative Agent, for its benefit and the
benefit of the Lenders under this Agreement and its priority. Each Loan Party shall pay to the
Administrative Agent on demand all taxes, costs and expenses incurred by the Administrative Agent
in connection with the preparation, execution, recording and filing of any such document or
instrument.

     Section 3.4 Books and Records.

     (a) Keep and maintain and cause the Subsidiaries to keep and maintain accurate books and
records, (b) make and cause the Subsidiaries to make entries on such books and records in form
satisfactory to the Administrative Agent disclosing the assignment of, and security interest in and
lien on, the Collateral and all collections received by each Loan Party or any of the Subsidiaries
on its Accounts as created herein, (c) unless the Administrative Agent on behalf of the Lenders
shall otherwise consent in writing, keep and maintain and cause the Subsidiaries to keep and
maintain all such books and records mentioned in (a) above only at the addresses listed in Exhibit
A, and (d) permit and cause the Subsidiaries to permit any person designated by the Administrative
Agent to enter the premises of each Loan Party and the Subsidiaries and examine, audit and inspect
the books and records at any reasonable time and from time to time without notice.

     Section 3.5 Assignments of Accounts.

     Promptly, upon request, execute and deliver to the Administrative Agent on behalf of the
Lenders, written assignments, in form and content acceptable to the Administrative Agent, of
specific Accounts or groups of Accounts; provided, however, the lien and/or security interest
granted to the Administrative Agent, for its benefit and the benefit of the Lenders under this
Agreement shall not be limited in any way to or by the inclusion or exclusion of Accounts within
such assignments. Such Accounts shall secure payment of the Obligations and are not sold to the
Administrative Agent whether or not any assignment thereof, which is separate from this Agreement,
is in form absolute.

     Section 3.6 Collections.

     Until such time as the Administrative Agent shall notify the Loan Parties of the revocation of
such privilege, each Loan Party and each of the Subsidiaries (a) shall at its own expense have the
privilege for the account of and in trust for the Administrative Agent, for its benefit and for the
benefit of the Lenders, of collecting its Accounts and receiving in respect thereto all items of
payment and shall otherwise completely service all of the Accounts including (i) the billing,
posting and maintaining of complete records applicable thereto, and (ii) the taking of such action
with respect to such Accounts as the Lenders may request or in the absence of such request, as the
Loan Parties and each of the Subsidiaries may deem advisable; and (b) may grant, in the ordinary
course of business, to any account debtor, any rebate, refund or adjustment to which the account
debtor may be lawfully entitled, and may accept, in connection therewith,

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the return of goods, the sale or lease of which shall have given rise to an Account. The
Administrative Agent on behalf of the Lenders may, at its option, at any time or from time to time
after default hereunder, revoke the collection privilege given to the Loan Parties and each of the
Subsidiaries herein by either giving notice of its assignment of, and lien on the Collateral to the
account debtors or giving notice of such revocation to the Loan Parties and each of the
Subsidiaries.

     Section 3.7 Notice to Account Debtors and Escrow Account.

     In the event (a) an Event of Default exists, (b) an event has occurred or condition exists
which, with the giving of notice or the lapse of time will constitute an Event of Default, or (c)
demand has been made for any or all of the Obligations, promptly upon the request of the
Administrative Agent in such form and at such times as specified by the Administrative Agent, give
notice of the lien created by this Agreement on the Accounts to the account debtors requiring the
account debtors to make payments thereon directly to the Administrative Agent, for its benefit and
for the benefit of the Lenders.

     Section 3.8 Government Accounts.

     Immediately notify the Administrative Agent if any of the Accounts arise out of contracts with
the United States or with any state or political subdivision thereof or any department, agency or
instrumentality of the United States, or any state or political subdivision thereof, and execute
any instruments and take any steps required by the Administrative Agent in order that all moneys
due and to become due under such contracts shall be assigned to the Administrative Agent, for its
benefit and for the benefit of the Lenders, and notice thereof given to the government under the
Federal Assignment of Claims Act or any other applicable law.

     Section 3.9 Business Names.

     Immediately notify and cause each of the Subsidiaries to notify the Administrative Agent of
any change in the name under which it conducts its business.

ARTICLE IV

NEGATIVE COVENANTS OF LOAN PARTIES

     Until payment in full and the performance of all of the Obligations, without the prior written
consent of the Administrative Agent, each Loan Party will not and will neither cause nor permit any
of the Subsidiaries to, directly or indirectly:

Section 4.1 Transfer of Collateral.

     Transfer, or permit the transfer, to another location of any of the Collateral or the books
and records related to any of the Collateral.

     Section 4.2 Sale of Accounts.

     Sell, discount, transfer, assign or otherwise dispose of any of its Accounts, notes
receivable, installment or conditional sales agreements or any other rights to receive income,
revenues or moneys, however evidenced.

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ARTICLE V

EVENTS OF DEFAULT

     The occurrence of one or more of the following events shall be “Events of Default” under this
Agreement and the Loan Documents, and the terms “Event of Default” or “default” shall mean,
whenever they are used in this Agreement, any one or more of the following events:

     Section 5.1 Default under Credit Agreement.

     An Event of Default shall occur under the Credit Agreement.

     Section 5.2 Default under this Agreement.

     Any Loan Party shall fail to duly perform, comply with or observe any of the terms, conditions
or covenants of this Agreement.

     Section 5.3 Breach of Representations and Warranties.

     Any representation or warranty made herein or in any report, certificate, opinion (including
any opinion of counsel for the Loan Parties), financial statement or other instrument furnished in
connection with the Obligations or with the execution and delivery of any of the Loan Documents,
shall prove to have been false or misleading when made in any material respect.

     Section 5.4 Execution; Attachment.

     Any execution or attachment shall be levied against the Collateral, or any part thereof, and
such execution or attachment shall not be set aside, discharged or stayed within thirty (30) days
after the same shall have been levied.

ARTICLE VI

RIGHTS AND REMEDIES UPON DEFAULT

     Section 6.1 Demand; Acceleration.

     The occurrence or non-occurrence of an Event of Default under this Agreement shall in no way
affect or condition the right of the Administrative Agent to demand payment at any time of any of
the Obligations which are payable on demand regardless of whether or not an Event of Default has
occurred. Upon the occurrence of an Event of Default, and in every such event and at any time
thereafter, the Administrative Agent may declare the Obligations due and payable, without
presentment, demand, protest, or any notice of any kind, all of which are hereby expressly waived,
anything contained herein or in any of the other Loan Documents to the contrary notwithstanding.

     Section 6.2 Specific Rights With Regard to Collateral.

     In addition to all other rights and remedies provided hereunder or as shall exist at law or in
equity from time to time, the Administrative Agent may, without notice to the Loan Parties:

     (a) request any account debtor obligated on any of the Accounts to make
payments thereon directly to the Administrative Agent, with

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the Administrative Agent taking control of the cash and non-cash proceeds
thereof;

     (b) compromise, extend or renew any of the Collateral or deal with the same as
it may deem advisable;

     (c) make exchanges, substitutions or surrenders of all or any part of the
Collateral;

     (d) remove from any of the Loan Parties’ or any Subsidiary’s place of business
all books, records, ledger sheets, correspondence, invoices and documents, relating
to or evidencing any of the Collateral or without cost or expense to the
Administrative Agent, make such use of the Loan Parties’ or any Subsidiary’s
place(s) of business as may be reasonably necessary to administer, control and
collect the Collateral;

     (e) repair, alter or supply goods if necessary to fulfill in whole or in part
the purchase order of any account debtor;

     (f) demand, collect, receipt for and give renewals, extensions, discharges and
releases of any of the Collateral;

     (g) institute and prosecute legal and equitable proceedings to enforce
collection of, or realize upon, any of the Collateral;

     (h) settle, renew, extend, compromise, compound, exchange or adjust claims in
respect of any of the Collateral or any legal proceedings brought in respect
thereof; and

     (i) endorse the name of any Loan Party upon any items of payment relating to
the Collateral or on any Proof of Claim in Bankruptcy against an account debtor.

     Section 6.3 Performance by Administrative Agent.

     If any Loan Party shall fail to pay the Obligations or otherwise fail to perform, observe or
comply with any of the conditions, covenants, terms, stipulations or agreements contained in this
Agreement or any of the other Loan Documents, the Administrative Agent without notice to or demand
upon the Loan Parties and without waiving or releasing any of the Obligations or any Event of
Default, may (but shall be under no obligation to) at any time thereafter make such payment or
perform such act for the account and at the expense of the Loan Parties, and may enter upon the
premises of any Loan Party for that purpose and take all such action thereon as the Administrative
Agent may consider necessary or appropriate for such purpose. All sums so paid or advanced by the
Administrative Agent shall be paid by the Loan Parties to the Administrative Agent on demand and
shall constitute and become a part of the Obligations.

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     Section 6.4 Uniform Commercial Code and Other Remedies.

     Upon the occurrence of an Event of Default (and in addition to all of its rights, powers and
remedies under this Agreement), the Administrative Agent shall have all of the rights and remedies
of a secured party under the Virginia Uniform Commercial Code and other applicable laws, and the
Administrative Agent and each Lender is authorized to offset and apply to all or any part of the
Obligations all moneys, credits and other property of any nature whatsoever of any Loan Party now
or at any time hereafter in the possession of, in transit to or from, under the control or custody
of, or on deposit with, the Administrative Agent or any Lender. Upon demand by the Administrative
Agent, each Loan Party shall assemble the Collateral and make it available to the Administrative
Agent, at a place designated by the Administrative Agent. The Administrative Agent or its agents
may enter upon any Loan Party’s premises to take possession of the Collateral, to remove it, to
render it unusable, or to sell or otherwise dispose of it.

     Any written notice of the sale, disposition or other intended action by the Administrative
Agent with respect to the Collateral which is sent by regular mail, postage prepaid, to the Company
at the address set forth in Section 7.1 (Notices), or such other address of the Company which may
from time to time be shown on the Administrative Agent’s records, at least ten (10) days prior to
such sale, disposition or other action, shall constitute reasonable notice to the Loan Parties.
Any proceeds of sale or other disposition of the Collateral will be applied by the Administrative
Agent to the payment of all reasonable out-of-pocket expenses incurred by the Administrative Agent,
any Lender or the L/C Issuer (including the fees, charges and disbursements of any counsel for the
Administrative Agent, any Lender or the L/C Issuer), in connection with the enforcement or
protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of
Credit issued pursuant to the Credit Agreement, including all such reasonable out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit, and any balance of such proceeds will be applied by the Administrative Agent,
for its benefit and for the benefit of the Lenders, to the payment of the balance of the
Obligations in such order and manner of application as the Administrative Agent may from time to
time in its sole discretion determine. After such application of the proceeds, any balance shall
be paid to the Loan Parties or to any other party entitled thereto.

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Notices.

     All notices, certificates or other communications hereunder shall be deemed given when
delivered in accordance with the terms of the Credit Agreement.

     Section 7.2 Consents and Approvals.

     If any consent, approval, or authorization of any state, municipal or other governmental
department, agency or authority or of any person, or any person, corporation, partnership or other
entity having any interest therein, should be necessary to effectuate any sale or other disposition
of the Collateral, each Loan Party agrees to execute all such applications and other instruments,

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and to take all other action, as may be required in connection with securing any such consent,
approval or authorization.

     Section 7.3 Remedies, etc. Cumulative.

     Each right, power and remedy of the Administrative Agent and Lenders as provided for in this
Agreement or in any of the other Loan Documents or now or hereafter existing at law or in equity or
by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other
right, power or remedy provided for in this Agreement or in any of the other Loan Documents or now
or hereafter existing at law or in equity, by statute or otherwise, and the exercise or beginning
of the exercise by the Administrative Agent, for its benefit and for the benefit of the Lenders, of
any one or more of such rights, powers or remedies shall not preclude the simultaneous or later
exercise by the Administrative Agent, for its benefit and for the benefit of the Lenders, of any or
all such other rights, powers or remedies. In order to entitle the Administrative Agent to
exercise any remedy reserved to it herein, it shall not be necessary to give any notice, other than
such notice as may be expressly required in this Agreement.

     Section 7.4 No Waiver of Rights by the Lenders.

     No failure or delay by the Administrative Agent to insist upon the strict performance of any
term, condition, covenant or agreement of this Agreement or of any of the other Loan Documents, or
to exercise any right, power or remedy consequent upon a breach thereof, shall constitute a waiver
of any such term, condition, covenant or agreement or of any such breach or preclude the
Administrative Agent from exercising any such right, power or remedy at any later time or times.
By accepting payment after the due date of any amount payable under this Agreement or under any of
the other Loan Documents, the Administrative Agent shall not be deemed to waive the right either to
require prompt payment when due of all other amounts payable under this Agreement or under any of
the other Loan Documents, or to declare a default for failure to effect such prompt payment of any
such other amount.

     Section 7.5 Entire Agreement.

     The Loan Documents shall completely and fully supersede all other agreements, both written and
oral, between the Administrative Agent, the Lenders and the Loan Parties relating to the
Obligations. None of the Administrative Agent, the Lenders or the Loan Parties shall hereafter
have any rights under such prior agreements but shall look solely to the Loan Documents for
definition and determination of all of their respective rights, liabilities and responsibilities
relating to the Obligations.

     Section 7.6 Survival of Agreement; Successors and Assigns.

     All covenants, agreements, representations and warranties made by the Loan Parties herein and
in any certificate, in the Loan Documents and in any other instruments or documents delivered
pursuant hereto shall survive the making by the Administrative Agent and the Lenders of the Loan
and the execution and delivery of the Note, and shall continue in full force and effect so long as
any of the Obligations are outstanding and unpaid. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors and assigns of such
party; and all covenants, promises and agreements by or on behalf of the Loan Parties, which are
contained in this Agreement shall inure to the benefit of the successors and

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assigns of the Administrative Agent and the Lenders, and all covenants, promises and
agreements by or on behalf of the Administrative Agent and the Lenders which are contained in this
Agreement shall inure to the benefit of the permitted successors and permitted assigns of the Loan
Parties, but this Agreement may not be assigned by the Loan Parties without the prior written
consent of the Administrative Agent, for its benefit and for the benefit of the Lenders.

     Section 7.7 Expenses.

     The Loan Parties agree to pay all out-of-pocket expenses of the Administrative Agent and the
Lenders as provided in the Credit Agreement. Each Loan Party agrees to indemnify and save harmless
the Administrative Agent and the Lenders for any liability resulting from the failure to pay any
required recordation tax, transfer taxes, recording costs or any other expenses incurred by the
Administrative Agent or the Lenders in connection with the Obligations. The provisions of this
Section shall survive the execution and delivery of this Agreement and the repayment of the
Obligations.

     Section 7.8 Counterparts.

     This Agreement may be executed in any number of counterparts all of which together shall
constitute a single instrument.

     Section 7.9 Governing Law.

     This Agreement and all of the other Loan Documents shall be governed by, and construed in
accordance with the laws of the Commonwealth of Virginia.

     Section 7.10 Modifications.

     No modification or waiver of any provision of this Agreement or of any of the other Loan
Documents, nor consent to any departure by the Loan Parties therefrom, shall in any event be
effective unless the same shall be in writing, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given. No notice to or demand on the
Loan Parties in any case shall entitle the Loan Parties to any other or further notice or demand in
the same, similar or other circumstance.

     Section 7.11 Illegality.

     If fulfillment of any provision hereof or any transaction related hereto or to any of the
other Loan Documents, at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by law, then ipso facto, the
obligation to be fulfilled shall be reduced to the limit of such validity; and if any clause or
provisions herein contained other than the provisions hereof pertaining to repayment of the
Obligations operates or would prospectively operate to invalidate this Agreement in whole or in
part, then such clause or provision only shall be void, as though not herein contained, and the
remainder of this Agreement shall remain operative and in full force and effect; and if such
provision pertains to repayment of the Obligations, then, at the option of the Administrative
Agent, all of the Obligations of the Loan Parties to the Administrative Agent and the Lenders shall
become immediately due and payable.

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     Section 7.12 Gender, etc.

     Whenever used herein, the singular number shall include the plural, the plural the singular
and the use of the masculine, feminine or neuter gender shall include all genders.

     Section 7.13 Headings.

     The headings in this Agreement are for convenience only and shall not limit or otherwise
affect any of the terms hereof.

     Section 7.14 Waiver of Trial by Jury.

     EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN
DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND THAT ANY PARTY TO THIS AGREEMENT
MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF
THE CONSENT OF THE SIGNATORIES HERETO TO ARBITRATION AND TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

     Section 7.15 Liability of the Administrative Agent.

     Each Loan Party hereby agrees that the Administrative Agent shall not be chargeable for any
negligence, mistake, act or omission of any accountant, examiner, agency or attorney employed by
the Administrative Agent (except for the willful misconduct of any person, corporation, partnership
or other entity employed by the Administrative Agent) in making examinations, investigations or
collections, or otherwise in perfecting, maintaining, protecting or realizing upon any lien or
security interest or any other interest in the Collateral or other security for the Obligations.

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     IN WITNESS WHEREOF, the parties hereto have signed and sealed this Agreement on the day and
year first above written.

	 	 	 	 	 	 	 
	 	 	LOAN PARTIES:	 	 
	 
	 	 	 	 	 	 
	 	 	SUNRISE SENIOR LIVING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard J. Nadeau
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard J. Nadeau	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 	 	SUNRISE SENIOR LIVING MANAGEMENT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James S. Pope
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James S. Pope	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SUNRISE SENIOR LIVING INVESTMENTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James S. Pope
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James S. Pope	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SUNRISE DEVELOPMENT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James S. Pope
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James S. Pope	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SUNRISE SENIOR LIVING SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James S. Pope
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James S. Pope	 	 
	 

	 	 	 	Title: Vice President	 	 

S - 12

 

EXHIBITS

	A.	 	Places of Business
	 
	B.	 	Liens on Collateral

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EXHIBIT A

PLACES OF BUSINESS

Each Loan Party’s Chief Executive Office is:

7902 Westpark Drive, McLean, Virginia 22102

Each Loan Party has other places of business at the following addresses:

Regional Office Addresses

Sunrise Development Inc.

	 	 	 	 	 	 	 	 	 	 	 
	Office Name	 	Address	 	City	 	State	 	Zip
	North Territory Office (main)

	 	771 East Lancaster Ave., 2nd Floor
	 	Villanova
	 	PA
	 	 	19085	 
	North Territory Office (New England Area)

	 	225 Broadway
	 	Methuen
	 	MA
	 	 	01844	 
	North Territory Office (Midwest Area)

	 	48701 Van Dyke Avenue
	 	Shelby Township
	 	MI
	 	 	48317	 
	South Territory Office

	 	1300 Corporate Center Way, Suite 103
	 	Wellington
	 	FL
	 	 	33414	 
	NW Territory Office

	 	1340 Treat Blvd, Suite 130
	 	Walnut Creek
	 	CA
	 	 	94597	 
	SW Territory Office

	 	4041 MacArthur Blvd., Suite 575
	 	Newport Beach
	 	CA
	 	 	92660	 
	Chicago Office

	 	220 W Huron St, Suite 3000
	 	Chicago
	 	IL
	 	 	60610	 

Sunrise Management Inc.

European Offices

Germany Office

Frankfurter Str. 1

61476 Kronberg im Taunus

Germany

UK Office

Crofton House

16 Warwick Road,

Beaconfield,

Buckinghamshire HP9 2PE

The Collateral is located at the following address(es):

7902 Westpark Drive, McLean, Virginia 22102

14

 

EXHIBIT B

LIENS ON COLLATERAL

None.

S - 15exv10w61

 

Exhibit 10.61

	 	 	 
	Prepared by:

	 	McGuireWoods LLP
	Tax Map Parcel No.

	 	047-2-01-0070A

TERMINATION OF LEASE AGREEMENT

     THIS
TERMINATION OF LEASE AGREEMENT is dated as of 13 December 2007, between SUNRISE
ASSISTED LIVING LIMITED PARTNERSHIP, a Virginia limited partnership (“Lessor”), and PAUL J.
KLASSEN and TERESA M. KLASSEN (collectively “Lessee”), and recites:

RECITALS:

     Lessor and Lessee were parties to a certain Ground Lease or Lease Agreement dated June 7, 1994
covering certain real estate in Fairfax County, Virginia and recorded in the Clerk’s Office of the
Circuit Court of Fairfax County, Virginia in Deed Book 9147 at page 1747 (the “Lease”). The parties
desire and intend to reflect of record the termination of the Lease.

TERMINATION:

     NOW THEREFORE, in consideration of the foregoing premises, the undersigned agree that the
Lease is terminated as of no further force and effect as of 15 December, 2007, and Lessee
has no further right, title or interest in the “Premises” leased thereunder.

     WITNESS the following signatures.

1

 

	 	 	 	 	 
	 	SUNRISE ASSISTED LIVING LIMITED
 PARTNERSHIP, by its
General Partner:
 SUNRISE SENIOR LIVING INVESTMENTS,

INC., a Virginia corporation

 	 
	 	By:  	/s/ William D. Shields
 	 
	 	 	Title: Vice President 	 
	 	 	 	 
	 

STATE OF VIRGINIA:

CITY/COUNTY OF FAIRFAX:

     The
foregoing instrument was acknowledged before me this
13th
day of December, 2007, by William D.
Shields as Vice President of
SUNRISE SENIOR LIVING INVESTMENTS, INC., a Virginia corporation, on behalf of the corporation as General Partner on behalf of SUNRISE ASSISTED LIVING LIMITED PARTNERSHIP, a Virginia limited
partnership.

     My commission expires: 11/30/2010

	 	 	 	 	 
	 	 	 
	 	/s/ Helen A. Wilson
 	 
	 	Notary Public 	 
	 	Print Name: Helen A. Wilson

Registration No.:  313047 	 
	 

2

 

	 	 	 	 	 
	 	 	 
	 	/s/
Paul J. Klaassen
 	 
	 	Paul J. Klassen 	 
	 	 	 
	 
	 	 	 
	 	/s/
Teresa M. Klaassen
 	 
	 	Teresa M. Klassen 	 
	 	 	 
	 

STATE OF VIRGINIA:

COUNTY OF FAIRFAX:

	 	 	The foregoing instrument was acknowledged before me this
13th day of December, 2007, by
PAUL J. KLASSEN.

     My
commission expires: 11/30/2010

	 	 	 	 	 
	 	 	 
	 	                                           /s/ Helen A. Wilson
 	 
	 	Notary Public 	 
	 	Print Name:    Helen A. Wilson

Registration No.: 313047 	 
	 

STATE OF VIRGINIA:

COUNTY OF FAIRFAX:

     The
foregoing instrument was acknowledged before me this 13 th day of December, 2007, by
TERESA M. KLASSEN.

     My commission expires:11/30/2010

	 	 	 	 	 
	 	 	 
	 	                                           /s/ Helen A. Wilson
 	 
	 	Notary Public 	 
	 	Print Name: Helen A. Wilson

Registration No.: 313047 	 
	 

3

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