Document:

exv10w48

 

Exhibit 10.48

PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT

     THIS PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT (this “Agreement”) is made this 19th
day of February, 2008, by SUNRISE SENIOR LIVING SERVICES, INC., a corporation organized under the
laws of the State of Delaware (“Pledgor”) for the benefit of BANK OF AMERICA, N.A., as
Administrative Agent, a national banking association (“Administrative Agent”) as agent for the
Lenders.

RECITALS

     A. The Lenders have made a Credit Facility available to Sunrise Senior Living, Inc., a
Delaware corporation (the “Borrower”) in the maximum principal sum at any one time outstanding of
$250,000,000.

     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 and that certain Sixth Amendment
to Credit Agreement (the “Sixth Amendment”) dated of even date herewith (as amended, modified,
substituted, extended and renewed from time to time the “Credit Agreement”) by and between the
Borrower and the Lenders.

     C. The Credit Facility is guaranteed by the Pledgor, among other Guarantors, pursuant to the
terms of the Credit Agreement.

     D. The Borrower and the Lenders have agreed to enter into the Sixth Amendment..

     E. As a condition precedent to the agreement to enter into the Sixth Amendment and to forego
adding SCIC, Inc. as a Guarantor, the Administrative Agent has required that that Pledgor enter
into this Agreement.

     F. All defined terms used in this Agreement and not defined in this Agreement shall have the
meaning given to such terms in the Credit Agreement.

AGREEMENTS

     NOW, THEREFORE, in consideration of Administrative Agent’s entering into the Credit Agreement
and for other good and valuable consideration, the receipt of which is hereby acknowledged, Pledgor
hereby agrees as follows:

ARTICLE I

SECURITY

 

 

     Section 1.1 The Stock Collateral.

     As security for the prompt and full performance of the Obligations, and as security for the
prompt and full performance of all obligations of Pledgor under this Agreement, all of the
foregoing, whether now in existence or hereafter created and whether joint, several, or both,
primary, secondary, direct, contingent or otherwise, Pledgor hereby pledges, assigns and grants to
Administrative Agent, for the ratable benefit of the Lenders, a security interest in the following
property of Pledgor (collectively, the “Stock Collateral”), whether now existing or hereafter
created or arising:

               (a) 100,000 shares of the common stock (the “Stock”) of SCIC, Inc., a
corporation organized under the laws of the State of Vermont (“Corporation”);

               (b) all stock rights, rights to subscribe, rights to distributions, dividends
(including, but not limited to, distributions in kind, cash dividends, stock
dividends, dividends paid in stock and liquidating dividends) and any other rights
and property interests including, but not limited to, accounts, contract rights,
instruments and general intangibles arising out of or relating to the Corporation;

               (c) all other or additional (or less) stock or other securities or property
(including cash) paid or distributed in respect of the Stock by way of stock-split,
spin-off, split-up, reclassification, combination of shares or similar corporate
rearrangement;

               (d) all other or additional stock or other securities or property (including
cash) which may be paid or distributed in respect of the Stock by reason of any
consolidation, merger, exchange of stock, conveyance of assets, liquidation or
similar corporate reorganization; and

               (e) all proceeds (both cash and non-cash) of the foregoing, whether now or
hereafter arising under the foregoing.

     Section 1.2 Rights of Administrative Agent in the Stock Collateral.

     Pledgor agrees that, with respect to the Stock Collateral, Administrative Agent shall have all
the rights and remedies of a secured party under the Uniform Commercial Code, as well as those
provided by law and/or in this Agreement. Notwithstanding the fact that the proceeds of the Stock
Collateral constitute part of the Stock Collateral, Pledgor may not dispose of the Stock Collateral
or any part thereof.

     Section 1.3 Rights of Pledgor in the Stock Collateral.

     Until an Event of Default (as that term is defined in ARTICLE IV (Default and Rights and
Remedies) hereof) occurs, Pledgor shall be entitled to receive all dividends and other
distributions which may be paid on the Stock Collateral and which are not otherwise prohibited by
the Loan Documents. Any cash dividend or distribution payable in respect of the Stock Collateral
which represents, in whole or in part a return of capital or a violation of this

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Agreement or the other Loan Documents shall be received by Pledgor in trust for Administrative
Agent, shall be paid immediately to Administrative Agent and shall be retained by Administrative
Agent as part of the Stock Collateral.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     To induce Administrative Agent and Lenders to advance sums to Borrower under the Credit
Agreement, Pledgor represents and warrants to Administrative Agent and shall be deemed to represent
and warrant at the time of each request for, and the time of each advance under, the credit
facilities described in the Credit Agreement, as follows:

     Section 2.1 Stock Interests.

     The Stock represents one hundred percent (100%) of the issued and outstanding equity interests
of each of the Corporation, and thereafter the Stock Collateral will continue to represent the same
percentage of the equity interest of the Corporation, unless otherwise permitted under the Credit
Agreement.

     Section 2.2 Power and Authority.

     Pledgor has full corporate power and authority to execute and deliver this Agreement, to
transfer the Stock Collateral and perform all other obligations required hereunder with respect to
the Stock Collateral and interests, and to incur and perform its obligations whether under this
Agreement, all of which have been duly authorized by all proper and necessary corporate action. No
consent or approval of shareholders or any creditors of Pledgor, the Corporation, or shareholders
of the Corporation, and no consent, approval, filing or registration with or notice to any
Governmental Authority on the part of Pledgor, is required as a condition to the execution,
delivery, validity or enforceability of this Agreement, including the right of Administrative Agent
to dispose of the Stock Collateral following an Event of Default provided, however, the prior
approval of the Vermont Department of Banking, Insurance, Securities and Health Care Administration
is required for Administrative Agent to dispose of Stock Collateral. Pledgor has full right, power
and authority and has all voting rights in any corporate matters as may be represented by the Stock
Collateral.

     Section 2.3 Binding Agreements.

     This Agreement has been properly executed and delivered and constitutes the valid and legally
binding obligations of Pledgor and is fully enforceable against Pledgor in accordance with its
terms.

     Section 2.4 No Conflicts.

     Neither the execution, delivery and performance of the terms of this Agreement nor the
consummation of the transactions contemplated by this Agreement will conflict with, violate or be
prevented by (a) Pledgor’s charter or bylaws, (b) any existing mortgage, indenture, contract or
agreement binding on Pledgor or affecting its property, or (c) any Laws; provided,
however, any transfer of ownership of Stock pursuant to the exercise of the Lenders
remedies hereunder, will

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cause a default in a substantial number of management Agreements and development agreements to
which the Corporation is a party.

     Section 2.5 Compliance with Laws.

     Pledgor is not in violation of any applicable Laws (including, without limitation, any Laws
relating to employment practices, to environmental, occupational and health standards and controls)
or order, writ, injunction, decree or demand of any court, arbitrator, or any Governmental
Authority affecting Pledgor or any of its properties, the violation of which could adversely affect
the authority of Pledgor to enter into, or the ability of Pledgor to perform under, this Agreement.

     Section 2.6 Title to Properties.

     Pledgor has good and marketable title to the Stock Collateral. Pledgor has legal, enforceable
and uncontested rights to use freely such property and assets. Pledgor is the sole owner of all of
the Stock Collateral, free and clear of all security interests, pledges, voting trusts, agreements,
Liens, claims and encumbrances whatsoever, other than the security interest, assignment and lien
granted under this Agreement. The interests assigned as Stock Collateral are subject to no
outstanding options, voting trusts, shareholders agreement, or other requirements with respect to
such interests.

     Section 2.7 Perfection and Priority of Stock Collateral.

     Administrative Agent has, or upon execution and recording of this Agreement and the Security
Documents will have, and will continue to have as security for the Obligations and the other
obligations secured by this Agreement, a valid and perfected Lien on and security interest in all
Stock Collateral, free of all other Liens, claims and rights of third parties whatsoever.

ARTICLE III

COVENANTS

     Until payment in full and the performance of all of the Obligations and all of the obligations
of Pledgor hereunder or secured hereby, Pledgor covenants and agrees with Administrative Agent as
follows:

     Section 3.1 Corporate Existence.

     Pledgor shall maintain its corporate existence in good standing in the jurisdiction in which
it is incorporated and in each other jurisdiction where it is required to register or qualify to do
business if the failure to do so in such other jurisdiction might have a material adverse effect on
the ability of Pledgor to perform its obligations under this Agreement, on the conduct of Pledgor’s
operations, on Pledgor’s financial condition, or on the value of, or the ability of Administrative
Agent to realize upon, the Stock Collateral.

     Section 3.2 Delivery of Stock Collateral.

     Pledgor shall deliver immediately to Administrative Agent (a) the certificates representing
the shares of the Stock, (b) immediately upon its receipt of any additional (or fewer) shares of
stock in the Corporation, the certificates representing such additional shares of stock,

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(c) all instruments, items of payment and other Stock Collateral received by Pledgor, and (d)
executed irrevocable, blank stock powers for all of the assigned shares of stock in form and
substance satisfactory to Administrative Agent and its counsel. All Stock Collateral at any time
received or held by Pledgor shall be received and held by Pledgor in trust for the benefit of
Administrative Agent, and shall be kept separate and apart from, and not commingled with, Pledgor’s
other assets; provided, however, that except after the occurrence and during the continuance of an
Event of Default, Pledgor and the Corporation may, in the ordinary course of their business, make
cash distributions, issue cash dividends and transfer real property rights which may be Stock
Collateral.

     Section 3.3 Defense of Title and Further Assurances.

     Pledgor will do or cause to be done all things necessary to preserve and to keep in full force
and affect its interests in the Stock Collateral, and shall defend, at its sole expense, the title
to the Stock Collateral and any part thereof. Further, Pledgor shall promptly, upon request by
Administrative Agent, execute, acknowledge and deliver any financing statement, endorsement,
renewal, affidavit, deed, assignment, continuation statement, security agreement, certificate or
other document as Administrative Agent may require in order to perfect, preserve, maintain,
protect, continue, realize upon, and/or extend the lien and security interest of Administrative
Agent under this Agreement and the priority thereof. Pledgor shall pay to Administrative Agent
upon demand all taxes, costs and expenses (including but not limited to reasonable attorney’s fees)
incurred by Administrative Agent in connection with the preparation, execution, recording and
filing of any such document or instrument mentioned aforesaid.

     Section 3.4 Compliance with Laws.

     Pledgor shall comply with all applicable Laws and observe the valid requirements of
Governmental Authorities, the noncompliance with or the nonobservance of which might have a
material adverse effect on the ability of Pledgor to perform its obligations under this Agreement
or on the conduct of Pledgor’s operations, on Pledgor’s financial condition, or on the value of, or
the ability of Administrative Agent to realize upon, the Stock Collateral.

     Section 3.5 Protection of Stock Collateral.

     Pledgor agrees that Administrative Agent may at any time take such steps as Administrative
Agent deems reasonably necessary to protect Administrative Agent’s interest in, and to preserve the
Stock Collateral. Pledgor agrees to cooperate fully with Administrative Agent’s efforts to
preserve the Stock Collateral and will take such actions to preserve the Stock Collateral as
Administrative Agent may in good faith direct. All of Administrative Agent’s expenses of
preserving the Stock Collateral, including, without limitation, reasonable attorneys’ fees, shall
be part of the Enforcement Costs.

     Section 3.6 Certain Notices.

     Pledgor will promptly notify Administrative Agent in writing of any Event of Default and of
any litigation, regulatory proceeding, or other event which materially and adversely affects the
value of the Stock Collateral, the ability of Pledgor or Administrative Agent to dispose of the
Stock Collateral, or the rights and remedies of Administrative Agent in relation thereto.

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     Section 3.7 Books and Records; Information.

               (a) Pledgor shall maintain proper books of record and accounts in which full, true and
correct entries are made of all dealings and transactions in relation to the Stock and which
reflect the Lien of Administrative Agent thereon.

               (b) Pledgor agrees that Administrative Agent may from time to time and at its option
(i) require Pledgor to, and Pledgor shall, periodically deliver to Administrative Agent
records and schedules, which show the status of the Stock Collateral and such other matters
which affect the Stock Collateral; (ii) verify the Stock Collateral and inspect the books
and records of Pledgor and make copies thereof or extracts therefrom; (iii) notify any
prospective buyers or transferees of the Stock Collateral or any other Persons of
Administrative Agent’s interest in the Stock Collateral; and (iv) disclose to prospective
buyers or transferees from Administrative Agent any and all information regarding the
Corporation, the Stock Collateral and/or Pledgor.

     Section 3.8 Disposition of Stock Collateral.

     Pledgor will not sell, discount, allow credits or allowances, assign, extend the time for
payment on, convey, lease, assign, transfer or otherwise dispose of the Stock Collateral or any
part thereof.

     Section 3.9 Distributions.

     Pledgor shall not vote, consent, waive or ratify any action taken, which would violate or be
inconsistent with any of the terms and provisions of this Agreement, the Credit Agreement or any of
the other Loan Documents or which would materially impair the position or interest of
Administrative Agent in the Stock or dilute the percentage of the ownership interests of the
Corporation pledged to Administrative Agent hereunder, except as expressly permitted by the Credit
Agreement.

     Section 3.10 Liens.

     Pledgor will not create, incur, assume or suffer to exist any Lien upon any of the Stock
Collateral, other than Liens in favor of Administrative Agent.

     Section 3.11 Survival.

     All representations and warranties contained in or made under or in connection with this
Agreement and the other Loan Documents shall survive the making of any advance under the Credit
Agreement and the incurring of any other Obligations and the other obligations secured by this
Agreement.

ARTICLE IV

DEFAULT AND RIGHTS AND REMEDIES

     Section 4.1 Events of Default.

     The occurrence of any one or more of the following events shall constitute an “Event of
Default” under the provisions of this Agreement:

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               4.1.1 Default under Credit Agreement.

               An “Event of Default” (as defined in the Credit Agreement) shall occur under the Credit
Agreement.

               4.1.2 Default under this Agreement.

               If Pledgor shall fail to duly perform, comply with or observe any of the terms, conditions or
covenants of this Agreement, which failure continues for ten (10) days after notice thereof from
Administrative Agent to Pledgor.

               4.1.3 Breach of Representations and Warranties.

               Any representation or warranty made in this Agreement or in any report, statement, schedule,
certificate, opinion (including any opinion of counsel for Pledgor), financial statement or other
document furnished by Pledgor or its agents or representatives in connection with this Agreement,
any of the other Loan Documents, or the Obligations or the other obligations secured by this
Agreement, shall prove to have been false or misleading when made (or, if applicable, when
reaffirmed) in any material respect.

               4.1.4 Failure to Comply with Covenants.

               The failure of Pledgor to perform, observe or comply with any covenant, condition or agreement
contained in this Agreement.

     Section 4.2 Remedies.

     Upon the occurrence of any Event of Default, Administrative Agent may at any time thereafter
exercise any one or more of the following rights, powers or remedies:

               4.2.1 Uniform Commercial Code.

               Administrative Agent shall have all of the rights and remedies of a secured party under the
applicable Uniform Commercial Code and other applicable Laws. Upon demand by Administrative Agent
and if not previously in the possession of Administrative Agent, Pledgor shall assist
Administrative Agent in the assembly of the Stock Collateral and assist in making it available to
Administrative Agent, at a place designated by Administrative Agent. Administrative Agent or its
agents may without notice from time to time enter upon Pledgor’s premises to take possession of the
Stock Collateral, to remove it, or to sell or otherwise dispose of it.

               4.2.2 Sale or Other Disposition of Stock Collateral.

               Administrative Agent may sell or redeem the Stock Collateral, or any part thereof, in one or
more sales, at public or private sale, conducted by any officer or agent of, or auctioneer or
attorney for, Administrative Agent, at Administrative Agent’s place of business or elsewhere, for
cash, upon credit or future delivery, and at such price or prices as Administrative Agent shall, in
its sole discretion, determine, and Administrative Agent may be the purchaser of any or all of the
Stock Collateral so sold. Further, any written notice of the sale, disposition or other intended
action by Administrative Agent with respect to the Stock Collateral which is sent by regular mail,
postage prepaid, to Pledgor at the address set forth in Section 5.1 (Notices), or

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such other address of Pledgor which may from time to time be shown on Administrative Agent’s
records, at least twenty (20) days prior to such sale, disposition or other action, shall
constitute commercially reasonable notice to Pledgor. Administrative Agent may alternatively or
additionally give such notice in any other commercially reasonable manner. Nothing in this
Agreement shall require Administrative Agent to give any notice not required by applicable Laws.

               If any consent, approval, or authorization of any Governmental Authority or any Person having
any interest therein, should be necessary to effectuate any sale or other disposition of the Stock
Collateral, Pledgor agrees to execute all such applications and other instruments, and to take all
other action, as may be required in connection with securing any such consent, approval or
authorization.

               Pledgor recognizes that Administrative Agent may be unable to effect a public sale of all or a
part of the Stock Collateral consisting of securities by reason of certain prohibitions contained
in the Securities Act of 1933, as amended, and other applicable federal and state Laws.
Administrative Agent may, therefore, in its discretion, take such steps as it may deem appropriate
to comply with such Laws and may, for example, at any sale of the Stock Collateral consisting of
securities restrict the prospective bidders or purchasers as to their number, nature of business
and investment intention, including, without limitation, a requirement that the Persons making such
purchases represent and agree to the satisfaction of Administrative Agent that they are purchasing
such securities for their account, for investment, and not with a view to the distribution or
resale of any thereof. Pledgor covenants and agrees to do or cause to be done promptly all such
acts and things as Administrative Agent may request from time to time and as may be necessary to
offer and/or sell the securities or any part thereof in a manner which is valid and binding and in
conformance with all applicable Laws.

               4.2.3 Specific Rights With Regard to Stock Collateral.

               In addition to all other rights and remedies provided hereunder or as shall exist at law or in
equity from time to time, Administrative Agent may (but shall be under no obligation to), without
notice to Pledgor, and Pledgor hereby irrevocably appoints Administrative Agent as its
attorney-in-fact, with power of substitution, in the name of Administrative Agent or in the name of
Pledgor or otherwise, for the use and benefit of Administrative Agent, but at the cost and expense
of Pledgor and without notice to Pledgor:

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

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

               (c) copy or transcribe all books, records, ledger sheets, correspondence,
invoices and documents, relating to or evidencing any of the Stock Collateral or
without cost or expense to Administrative Agent, make such use of Pledgor’s places
of business as may be reasonably necessary to administer, control and collect the
Stock Collateral;

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

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

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

               (g) endorse or sign the name of Pledgor upon any items of payment, certificates
of title, instruments, securities, powers, documents, documents of title, or other
writing relating to or part of the Stock Collateral and on any Proof of Claim in
Bankruptcy against an account debtor; and

               (h) take any other action necessary or beneficial to realize upon or dispose of
the Stock Collateral.

               4.2.4 Application of Proceeds.

               Any proceeds of sale or other disposition of the Stock Collateral will be applied by
Administrative Agent to the payment of the Lenders’ costs incurred in enforcing their remedies
hereunder, and any balance of such proceeds will be applied by Administrative Agent to the payment
of the balance of the Obligations and the other obligations secured by this Agreement in such order
and manner of application as Administrative Agent may from time to time in its sole and absolute
discretion determine. If the sale or other disposition of the Stock Collateral fails to fully
satisfy the Obligations and the other obligations secured by this Agreement, Pledgor shall remain
liable to Administrative Agent for any deficiency.

               4.2.5 Performance by Administrative Agent.

               If Pledgor shall 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,
Administrative Agent without notice to or demand upon Pledgor and without waiving or releasing any
of the Obligations or any Default or 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
Pledgor, and may enter upon the premises of Pledgor for that purpose and take all such action
thereon as Administrative Agent may consider necessary or appropriate for such purpose and Pledgor
hereby irrevocably appoints Administrative Agent as its attorney-in-fact to do so, with power of
substitution, in the name of Administrative Agent or in the name of Pledgor or otherwise, for the
use and benefit of Administrative Agent, but at the cost and expense of Pledgor and without notice
to Pledgor. All sums so paid or advanced by Administrative Agent together with interest thereon
from the date of payment, advance or incurring until paid in full at the Default Rate and all costs
and expenses, shall be deemed part of the Enforcement Costs, shall be paid by Pledgor to
Administrative Agent on demand, and shall constitute and become a part of the Obligations.

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               4.2.6 Other Remedies.

               Administrative Agent may from time to time proceed to protect or enforce its rights by an
action or actions at law or in equity or by any other appropriate proceeding, whether for the
specific performance of any of the covenants contained in this Agreement or in any of the other
Loan Documents, or for an injunction against the violation of any of the terms of this Agreement or
any of the other Loan Documents, or in aid of the exercise or execution of any right, remedy or
power granted in this Agreement, the Loan Documents, and/or applicable Laws.

     Section 4.3 Costs and Expenses.

     Pledgor shall pay on demand all costs and expenses (including reasonable attorney’s fees), all
of which shall be deemed part of the Obligations, incurred by and on behalf of Administrative Agent
incident to any collection, servicing, sale, disposition or other action taken by Administrative
Agent with respect to the Stock Collateral or any portion thereof.

     Section 4.4 Receipt Sufficient Discharge to Purchaser.

     Upon any sale or other disposition of the Stock Collateral or any part thereof, the receipt of
Administrative Agent or other Person making the sale or disposition shall be a sufficient discharge
to the purchaser for the purchase money, and such purchaser shall not be obligated to see to the
application thereof.

     Section 4.5 Remedies, etc. Cumulative.

     Each right, power and remedy of Administrative Agent as provided for in this Agreement or in
any of the other Loan Documents or in any related instrument or agreement or now or thereafter
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 the
other Loan Documents or in any related document, instrument or agreement or now or hereafter
existing at law or in equity or by statute or otherwise, and the exercise or beginning of the
exercise by Administrative Agent of any one or more of such rights, powers or remedies shall not
preclude the simultaneous or later exercise by Administrative Agent of any or all such other
rights, powers or remedies.

     Section 4.6 No Waiver, etc.

     No failure or delay by 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 of any
related documents, instruments or agreements, 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 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 or under any related document,
instrument or agreement, 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
other of the Loan Documents, or to declare a default for failure to effect such prompt payment of
any such other amount.

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ARTICLE V

MISCELLANEOUS

     Section 5.1 Notices.

     All notices, requests and demands to or upon the parties to this Agreement shall be given in
accordance with the terms of Section 11.2 of the Credit Agreement.

     Section 5.2 Amendments; Waivers.

     This Agreement and the other Loan Documents may not be amended, modified, or changed in any
respect except by an agreement in writing signed by Administrative Agent and Pledgor. No waiver of
any provision of this Agreement or of any of the other Loan Documents nor consent to any departure
by Pledgor therefrom, shall in any event be effective unless the same shall be in writing. No
course of dealing between Pledgor and Administrative Agent and no act or failure to act from time
to time on the part of Administrative Agent shall constitute a waiver, amendment or modification of
any provision of this Agreement or any of the other Loan Documents or any right or remedy under
this Agreement, under any of the other Loan Documents or under applicable Laws.

     Section 5.3 Cumulative Remedies.

     The rights, powers and remedies provided in this Agreement and in the other Loan Documents are
cumulative, may be exercised concurrently or separately, may be exercised from time to time and in
such order as Administrative Agent shall determine and are in addition to, and not exclusive of,
rights, powers and remedies provided by existing or future applicable Laws. In order to entitle
Administrative Agent to exercise any remedy reserved to it in this Agreement, it shall not be
necessary to give any notice, other than such notice as may be expressly required in this
Agreement. Without limiting the generality of the foregoing, Administrative Agent may:

               (a) proceed against Pledgor with or without proceeding against Pledgor or any
other Person who may be liable for all or any part of the Obligations;

               (b) proceed against Pledgor with or without proceeding under any of the other
Loan Documents or against any Collateral or other collateral and security for all or
any part of the Obligations;

               (c) without notice, release or compromise with any guarantor or other Person
liable for all or any part of the Obligations under the Loan Documents or otherwise;
and

               (d) without reducing or impairing the obligations of Pledgor and without notice
thereof: (i) fail to perfect the Lien in any or all Stock Collateral or to release
any or all the Stock Collateral or to accept substitute collateral, (ii) waive any
provision of this Agreement or the other Loan Documents, (iii) exercise or fail to
exercise rights of set-off or other rights, or (iv) accept partial payments or
extend from time to time the maturity of all or any part of the Obligations.

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     Section 5.4 Severability.

     In case one or more provisions, or part thereof, contained in this Agreement or in the other
Loan Documents shall be invalid, illegal or unenforceable in any respect under any Law, then
without need for any further agreement, notice or action:

               (a) the validity, legality and enforceability of the remaining provisions shall
remain effective and binding on the parties thereto and shall not be affected or
impaired thereby;

               (b) the obligation to be fulfilled shall be reduced to the limit of such
validity;

               (c) if such provision or part thereof pertains to repayment of the Obligations,
then, at the sole and absolute discretion of Administrative Agent, all of the
Obligations of Pledgor to Administrative Agent shall become immediately due and
payable; and

               (d) if affected provision or part thereof does not pertain to repayment of the
Obligations, but operates or would prospectively operate to invalidate this
Agreement in whole or in part, then such provision or part thereof only shall be
void, and the remainder of this Agreement shall remain operative and in full force
and effect.

     Section 5.5 Successors and Assigns.

     This Agreement and all other Loan Documents shall be binding upon and inure to the benefit of
Pledgor and Administrative Agent and their respective heirs, personal representatives, successors
and assigns, except that Pledgor shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of Administrative Agent.

     Section 5.6 Applicable Law; Jurisdiction.

               5.6.1 Applicable Law.

               This Agreement shall be governed by the Laws of the Commonwealth of Virginia , as if each of
the Loan Documents and this Agreement had been executed, delivered, administered and performed
solely within the Commonwealth of Virginia.

               5.6.2 Submission to Jurisdiction.

               Pledgor irrevocably submits to the jurisdiction of any state or federal court sitting in the
State over any suit, action or proceeding arising out of or relating to this Agreement or any of
the other Loan Documents. Pledgor irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding brought in any such court and any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum. Final judgment in any such suit,
action or proceeding brought in any such court shall be conclusive and binding upon Pledgor and may
be enforced in any court in which Pledgor is subject to jurisdiction, by a suit upon such judgment,
provided that service of process is effected upon

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Pledgor in one of the manners specified in this Section or as otherwise permitted by
applicable Laws.

     Section 5.7 Headings.

     The headings in this Agreement are included herein for convenience only, shall not constitute
a part of this Agreement for any other purpose, and shall not be deemed to affect the meaning or
construction of any of the provisions hereof.

     Section 5.8 Entire Agreement.

     This Agreement is intended by Administrative Agent and Pledgor to be a complete, exclusive and
final expression of the agreements contained herein. Neither Administrative Agent nor Pledgor
shall hereafter have any rights under any prior agreements but shall look solely to this Agreement
and the Credit Agreement for definition and determination of all of their respective rights,
liabilities and responsibilities under this Agreement.

     Section 5.9 Waiver of Trial by Jury.

     PLEDGOR AND ADMINISTRATIVE AGENT HEREBY JOINTLY AND SEVERALLY WAIVE TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO WHICH BORROWER AND AGENT MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY
PERTAINING TO (A) THIS AGREEMENT, (B) ANY OF THE LOAN DOCUMENTS, OR (C) THE STOCK COLLATERAL. THIS
WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR
PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT.

     This waiver is knowingly, willingly and voluntarily made by Pledgor and Administrative Agent,
and Pledgor and Administrative Agent hereby represent that no representations of fact or opinion
have been made by any individual to induce this waiver of trial by jury or to in any way modify or
nullify its effect. Pledgor and Administrative Agent further represent that they have been
represented in the signing of this Agreement and in the making of this waiver by independent legal
counsel, selected of their own free will, and that they have had the opportunity to discuss this
waiver with counsel.

     Section 5.10 Liability of Administrative Agent.

     Pledgor hereby agrees that Administrative Agent shall not be chargeable for any negligence,
mistake, act or omission of any accountant, examiner, agency or attorney employed by Administrative
Agent in making examinations, investigations or collections, Administrative Agent’s failure to
preserve or protect any rights of Pledgor under the Stock Collateral or Administrative Agent’s
failure to perfect, maintain, protect or realize upon any lien or security interest or any other
interest in the Stock Collateral or other security for the Obligations. By inspecting the Stock
Collateral or any other properties of Pledgor or by accepting or approving anything required to be
observed, performed or fulfilled by Pledgor or to be given to Administrative Agent pursuant to this
Agreement or any of the other Loan Documents, Administrative Agent shall not be deemed to have
warranted or represented the condition,

13

 

sufficiency, legality, effectiveness or legal effect of the same, and such acceptance or
approval shall not constitute any warranty or representation with respect thereto by Administrative
Agent.

     IN WITNESS WHEREOF, Pledgor has caused this Agreement to be executed, sealed and delivered, as
of the day and year first written above.

	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	SUNRISE SENIOR LIVING SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ James S. Pope

	 	 	 	By:
	 	/s/ Daniel Schwartz
	 	(SEAL)
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel Schwartz	 	 
	 

	 	 	 	Title:
	 	President	 	 

14

 

IRREVOCABLE STOCK POWER

     FOR VALUE RECEIVED, the undersigned does (do) hereby sell(s), assign(s) and transfer(s) to

Name:

Address:

Social Security or other Identifying Number: ____________________________

___ shares of the ___ stock of                      represented by
Certificate(s) No(s)                      inclusive, standing in the name
of                      on the books of said company. The undersigned does (do) hereby
irrevocably constitute(s) and appoint(s)                      attorney to transfer the said
stock on the books of said company with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	SUNRISE SENIOR LIVING SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	2-14-08
	 	 	 	By:
	 	/s/ Daniel Schwartz	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Daniel Schwartz	 	 
	 

	 	 	 	 	 	 	 	Title: President	 	 

15exv10w49

 

Exhibit 10.49

SEVENTH AMENDMENT TO CREDIT AGREEMENT

     THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) is made as of March 13, 2008
between SUNRISE SENIOR LIVING, INC. a Delaware corporation (the “Company”), 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.

     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 and that certain Sixth Amendment
to Credit Agreement dated February 19, 2008 (as amended by this Agreement, and as further amended,
modified, substituted, extended and renewed from time to time the “Credit Agreement”) by and
between the Company and the Lenders.

     C. The Credit Facility is guaranteed by the Guarantors pursuant to the terms of the Credit
Agreement.

     D. The Company and the Lenders have agreed to (i) modify the delivery deadlines for certain
financial statements; (ii) waive delivery of certain other financial statements and (iii) and make
such other changes to the Credit Agreement as are more particularly set forth herein.

     E. As a condition precedent to the agreements referenced above, the Administrative Agent has
required that this Agreement be executed and delivered to the Administrative Agent on behalf 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, the Company, the Lenders and the Administrative Agent hereby agree as follows:

 

 

     1. The above Recitals are a part of this Agreement. Unless otherwise expressly defined in
this Agreement, terms defined in the Credit Agreement shall have the same meaning under this
Agreement.

     2. The Company represents and warrants to the Lender as follows:

          (a) The Company has the power and authority to execute and deliver this Agreement and perform
its obligations hereunder;

          (b) The Credit Agreement, as amended by this Agreement, and each of the other Loan Documents
remains in full force and effect, and each constitutes the valid and legally binding obligation of
Borrower, enforceable in accordance with its terms;

          (c) All of the Company’s representations and warranties contained in the Credit Agreement and
the other Loan Documents are true and correct on and as of the date of the Company’s execution of
this Agreement with the exception of representations and warranties regarding financial statements
described in Section 6.5 of the Credit Agreement; and

          (d) No Event of Default and no event which, with notice, lapse of time or both would
constitute an Event of Default, has occurred and is continuing under the Credit Agreement or the
other Loan Documents which has not been waived in writing by the Lender.

     3. The Company hereby acknowledges and agrees that pursuant to the terms of Sections 7.1 and
7.2 of the Credit Agreement the Company is required to deliver to the Administrative Agent certain
quarterly and annual financial statements and certain Compliance Certificates within the time
period specified therein. The Company, the Administrative Agent and the Lenders hereby agree to
waive receipt of (a) all quarterly financial statements which were to have been submitted to the
SEC for fiscal year 2006, and for the quarters ending March 31, 2007, June 30, 2007 and September
30, 2007 and the Compliance Certificates to be delivered to the Administrative Agent in connection
with such quarterly statements; and (b) the internally prepared draft financial statement for the
fiscal quarter ending September 30, 2007 and related preliminary financial covenant Compliance
Certificate for the fiscal quarter ending September 30, 2007.

     4. The Company, the Administrative Agent and the Lenders hereby agree to modify the delivery
dates to the Administrative Agent of: (a) the annual financial statement for the Company for the
fiscal year ending December 31, 2006, as such financial statement was submitted to the SEC, and (b)
the Compliance Certificates to be submitted to the Administrative Agent with each such financial
statement required pursuant to Section 7.2 of the Credit Agreement (collectively, the “Outstanding
2006 Financial Reports”). As amended by this Agreement, the Outstanding 2006 Financial Reports
will be due no later than April 15, 2008.

     5. The Company, the Administrative Agent and the Lenders hereby agree to modify the delivery
dates to the Administrative Agent of: (a) the annual financial statement for the Company for the
fiscal year ending December 31, 2007, as such financial statement was submitted to the SEC, and (b)
the Compliance Certificates to be submitted to the Administrative Agent with each such financial
statement required pursuant to Section 7.2 of the Credit

2

 

Agreement (collectively, the “Outstanding 2007 Financial Reports”). As amended by this
Agreement, the Outstanding 2007 Financial Reports will be due no later than July 31, 2008.

     6. The Company, the Administrative Agent and the Lenders hereby agree to modify the delivery
dates to the Administrative Agent of: (a) the financial statement for the Company for the fiscal
quarter ending March 31, 2008, as such financial statement was submitted to the SEC, and (b) the
Compliance Certificates to be submitted to the Administrative Agent with each such financial
statement required pursuant to Section 7.2 of the Credit Agreement (collectively, the “2008 First
Quarter Financial Reports”). As amended by this Agreement, the 2008 First Quarter Financial
Reports will be due no later than August 20, 2008.

     7. The Company, the Administrative Agent and the Lenders hereby agree that on or before April
30, 2008, the Company shall provide to the Administrative Agent, in form and detail satisfactory to
Administrative Agent: (i) an internally prepared draft financial statement (balance sheet and
income statement only) for the fiscal year ending December 31, 2007 and (ii) a preliminary
financial covenant Compliance Certificate for the fiscal year ending December 31, 2007.

     8. The Company, the Administrative Agent and the Lenders hereby agree to modify the delivery
dates to the Administrative Agent of: (a) the financial statement for the Company for the fiscal
quarter ending June 30, 2008, as such financial statement was submitted to the SEC, and (b) the
Compliance Certificates to be submitted to the Administrative Agent with each such financial
statement required pursuant to Section 7.2 of the Credit Agreement (collectively, the “2008 Second
Quarter Financial Reports”). As amended by this Agreement, the 2008 Second Quarter Financial
Reports will be due no later than September 10, 2008.

     9. The Company, the Administrative Agent and the Lenders hereby agree that through the
Maturity Date, the Company shall deliver, within forty-five (45) days after the end of each month,
internally prepared operating data that reflects revenue, expense, margin, average daily rate and
occupancy for only such Senior Living Facilities, on an aggregate basis, in which the Company or
its affiliates have an ownership interest and which operated in both the current month and the
corresponding month of the previous fiscal year in comparative form for both periods fairly
presenting the financial condition of such Senior Living Facility.

     10. In consideration of the waivers set forth herein the Company agrees that anything to the
contrary set forth in Section 9.1(c) (Other Defaults) of Credit Agreement notwithstanding, all of
the dates set forth in this Agreement for delivery of financial reports of any kind shall be
absolute. Failure to deliver any such reports as herein provided shall constitute an Event of
Default and the Company shall not be entitled to notice for failure to deliver such reports or any
automatic cure period unless expressly agreed to in writing by the Administrative Agent and the
Required Lenders.

     11. The Company, the Administrative Agent and the Lenders hereby agree that the Company shall
pay to the Administrative Agent for the account of each Lender that executes this Agreement, in
accordance with its Applicable Percentage, a fee equal to twenty (20) basis points.

3

 

     12. Except as specifically set forth herein, the terms, provisions and covenants of the Credit
Agreement, including, but not limited to, all financial covenants and definitions related thereto,
are hereby ratified and confirmed and remain in full force and effect.

     13. This Agreement may be executed in any number of duplicate originals or counterparts, each
of such duplicate originals or counterparts shall be deemed to be an original and all taken
together shall constitute but one and the same instrument.

     14. By their signatures below, the Guarantors consent to the transactions contemplated by and
the agreements made by the Company under this Agreement and ratify, confirm and reissue their
guaranty as set forth in the Credit Agreement.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered under seal by their duly authorized representatives as of the date and year first written
above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	SUNRISE SENIOR LIVING, INC.	 	 
	 
	 	 	 	 	 	 
	 

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

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard J. Nadeau	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	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-1

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as
Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kristine Thennes
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kristine Thennes	 	 
	 

	 	 	 	Title: Vice President	 	 

S-2

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line
Lender in its own right and as successor by merger to Lasalle
Bank National Association
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael J. Landini
	 	(Seal)
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael J. Landini	 	 
	 

	 	 	 	Senior Vice President	 	 

S-3

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL
ASSOCIATION, as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Frank S. Kaulback III
	 

	 	 	 	 
	 

	 	 	 	Frank S. Kaulback III
	 

	 	 	 	Senior Vice President

S-4

 

	 	 	 	 	 
	 	 	HSBC BANK USA, N.A., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John P. Northington
	 

	 	 	 	 
	 

	 	 	 	John P. Northington
	 

	 	 	 	Vice President

S-5

 

	 	 	 	 	 
	 	 	MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender
in its own right and as successor by merger to First
Horizon Bank, formerly a division of First Tennessee
Bank, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Sharon P. O’Brien
	 

	 	 	 	 
	 

	 	 	 	Sharon P. O’Brien
	 

	 	 	 	Vice President

S-6

 

	 	 	 	 	 
	 	 	CHEVY CHASE BANK, F.S.B., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ellen-Elizabeth B. Lee
	 

	 	 	 	 
	 

	 	 	 	Ellen-Elizabeth B. Lee
	 

	 	 	 	Assistant Vice President

S-7

 

	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender, in its
own right and as successor by merger to Farmers &
Mechanics Bank
	 
	 	 	 	 
	 

	 	By:	 	/s/ Michael J. Elehwany
	 

	 	 	 	 
	 

	 	 	 	Michael J. Elehwany
	 

	 	 	 	Vice President

S-8

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