Document:

exv10w62

 

Exhibit 10.62

AMENDED AND RESTATED GROUND LEASE AGREEMENT

     This Amended and Restated Ground Lease Agreement (this “Lease”) made and entered into this
29th day of August, 2003, by and between (i) PAUL J. KLAASSEN AND TERESA M.
KLAASSEN (hereinafter together referred to as “Lessor”), and (ii) SUNRISE FAIRFAX ASSISTED
LIVING, L.L.C., a Virginia limited liability company (hereinafter referred to as “Lessee”).

RECITALS

     A. Lessor is the sole owner of certain real property (the “Original Property”) as described
in that certain Amended and Restated Lease Agreement and Assignment of Leasehold Right (the
“Ground Lease”) entered into as of the 6th day of June, 1994 and recorded among the
land records of Fairfax County, Virginia in Deed Book 9147 at page 1757, by and among Barbara M.
Volentine and Teresa M. Klaassen, as beneficiaries of the Residuary Estate of the Last Will and
Testament of Eldon J. Merritt, and Lowell John Johnson, Jr., the Executor of the Estate of Eldon
J. Merritt, as lessor (the “Estate”), Sunrise Assisted Living Limited Partnership, as new lessee
and assignee, Assisted Living — Fairfax Associates, as current lessee and assignor, Sunrise
Foundation, Inc. (now known as “Sunrise Assisted Living Foundation” and hereinafter referred
to as the “Foundation”), as sublessee, and Paul J. Klaassen and Teresa M. Klaassen, as original lessee.

     B. By Special Warranty Deed made as of July 3, 1996, the Estate did convey unto Lessor the
Original Property subject to the Ground Lease.

     C. By a First Amendment to Amended and Restated Lease Agreement and Assignment of
Leasehold Right dated May 8, 2001 and recorded on May 11, 2001 in Deed Book 11897 at page 1595,
all right, title and interest of Sunrise Assisted Living Limited Partnership, as lessee under the
Ground Lease, was assigned to Lessee.

     D. The Foundation was a subtenant under the Ground Lease, pursuant to which the Foundation
occupied a portion of the Original Property (the “Subleased Premises”).

     E. Pursuant to that certain plat attached to Deed of Subdivision (the “Subdivision Plat”)
dated as of March 14, 2003, and recorded in Deed Book 14587 at page 1319, the Original Property
was subdivided into two (2) parcels. One parcel is the portion of the Original Property occupied
by Lessee and not subject to the sublease to the Foundation. The second parcel is the same as the
Subleased Premises. As a result of the Subdivision Plat, the Original Property may be leased
separately to each of the Lessee and the Foundation.

     F. The
parties hereto desire to amend and restate the Ground Lease in order to create two
separate, independent leasehold estates, one with Lessee hereunder as lessee (“Parcel One”), and
the other with the Foundation as Lessee of the Subleased Premises (“Parcel Two”). Lessor is
simultaneously with the execution hereof entering into a direct ground lease with the Foundation.

 

 

     NOW, THEREFORE, for and in consideration of the premises, the mutual covenants and
conditions contained herein, and other good and valuable consideration, the parties hereto
do agree as follows:

     1. Premises. That certain real property located in Fairfax, Virginia, as more
particularly described in Exhibit A hereto, together with all existing easements and
covenants (the “Property”), together with a non-exclusive right with the Foundation to use all
common areas on Parcel One and Parcel Two as shall be designated by Lessor (the “Common Areas”).
The use and maintenance of the Common Areas shall be subject to such rules as shall be mutually
agreed by Lessor, Lessee and the Foundation.

     2. Term and Rent. Lessor leases the Property for a term (the “Lease Term”)
commencing on the date hereof (the “Commencement Date”) and ending on the 31st day of May, 2085,
at 12:00 midnight, at a monthly rental of $12,926.42 plus “CPI adjustment” (“defined below),
payable on the first day of each month for that month’s rental, during the term of this Lease.
The rent payable under this Agreement shall be subject to annual cost of living adjustments (the
“CPI adjustment”) in accordance with the following provisions: (a) the Consumer Price Index for
urban wage earners and clerical workers, U.S. city average all items, as promulgated by the
Bureau of Labor statistics of the U.S. Department of Labor, for the
month of December, 2002 shall be designated the Base Price Index; (b)
promptly after December 31 2003, and after December 31 of each year thereafter, the rent shall be adjusted so that the ratio
of the Price Index for January following December 31 of each such year to the adjusted
rental (to be paid) shall be the same as the ratio of the Base Price Index to the rent (then
being paid); (c) no adjustment shall reduce the adjusted rental to be paid below the rent
then being paid. All rental payments shall be made to Lessor at such place as Lessor may
from time to time designate. It is the intention of the parties hereto that the rent herein
specified shall be net to the Lessor in each year during the term of this Lease; that all
costs, expenses, and obligations of every kind relating to the Property (unless otherwise
specifically provided herein) which may arise or become due during the term of this Lease
shall be paid by the Lessee except Lessor’s rental license and that the Lessor shall be
indemnified by the Lessee against such costs, expenses and obligations.

          3. Condition of Premises. Lessee accepts the Property in its present physical
condition, and Lessor shall not be obligated in any way to make improvements thereto or perform
any maintenance thereon, all of which Lessee agrees to do. Lessor hereby agrees that Lessee may
develop the Property without the prior written consent of the Lessor. Lessee shall keep the
improvements located on the Property in good condition and shall continue to use the Property
throughout the Lease Term so as not to commit economic waste. Lessee further agrees to keep the
Property free and clear of rubbish and refuse. Lessor grants to Lessee the right to apply for
appropriate land use or zoning changes/permits and Lessor further grants to Lessee the right to
convey by grant or proffer all necessary easements, rights of way or restrictions that may
reasonably be required by the appropriate governmental authority or public utility provider.

          4. Repairs. Lessee shall at all times during this Lease and at its own cost and
expense, repair, replace and maintain in a good, safe, and substantial condition, all buildings
and any improvements, additions and alterations thereof.

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          5. Taxes. Lessee shall pay all taxes, assessments, and other governmental charges
and the cost of required improvements to the service road in front the Property that shall or
may during the lease term be imposed on, or arise in connection with the use of the Property or
any part thereof.

          6. Utilities. All applications and connections for necessary utility services on the
Property shall be made in the name, and at the cost, of Lessee only, and Lessee shall be solely
liable for utility charges as they become due, including those for sewer, water, oil, gas,
electricity and telephone services.

          7. Insurance. During the term of this Lease and for any further time that Lessee
shall hold the Property, Lessee shall obtain and maintain at its expense the following types and
amounts of insurance.

               a. Fire Insurance. Lessee shall keep all buildings, improvements and
equipment now on the Property or any that may hereafter be erected thereon, fully insured against
loss or damage by fire or other hazard under Fire and Extended Coverage, in an approved stock
insurance company for an amount acceptable to the Lessor. Lessor shall be named as an
additional insured in all such policies.

               b. Personal-Injury and Property Damage Insurance. Insurance
against liability for bodily injury and property damage and machinery insurance, all to be in
amounts and in forms of insurance policies as may from time to time be required by Lessor, shall
be provided by Lessee. Lessor shall be named as an additional insured in all such insurance
policies.

          8. Unlawful or Dangerous Activity. Lessee shall neither use nor occupy the
Property or any part thereof for any unlawful, disreputable, or ultrahazardous business purpose
nor operate or conduct its business in a manner constituting a nuisance of any kind. Lessee shall
immediately, on discovery of any unlawful, disreputable or ultrahazardous use, take action to
halt such activity. Lessee agrees to maintain the Property in a lawful manner and in accordance
with all applicable statutes, laws and ordinances.

          9. Default. The occurrence of any one or more of the following events shall
constitute an event of default by Lessee under this Lease: If Lessee shall default in the punctual
payment of the rent payable with respect to, or in the performance of any of the terms and
conditions of, this Lease, provided the default in such payment shall continue for ten (10) days
or the default in any such non-monetary performance shall continue for thirty (30) days; or if
Lessee shall default in the observance or performance of any term, covenant or agreement contained
herein and such default shall continue for more than 30 days; or if the Property shall be vacated
by Lessee during the term of this Lease, and such vacation continues for more than 30 days; or if
Lessee shall become insolvent (however such insolvency may be defined or evidenced), commit an
act of bankruptcy, make an assignment for the benefit of creditors, or appoint a committee of
creditors; or if there shall be filed by or against Lessee any petition for any relief under the
bankruptcy laws of the United States as now or hereafter in effect or under any
insolvency,

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readjustment of debt, dissolution or liquidation law or statute of any other jurisdiction
now or hereafter in effect (and whether any such action or proceeding shall be at law, in
equity or under any bankruptcy, reorganization, arrangement, insolvency, readjustment of
debt, receivership, liquidation or dissolution law or statute); or if Lessee shall suspend
the transaction of its usual business; or if any petition or application to any Court or
tribunal, at law or equity, be filed by or against Lessee for the appointment of any
receiver or any trustee for Lessee; or if any governmental authority or any court or other
tribunal shall take possession or jurisdiction of, or assume control over the affairs or
operations of, or a receiver shall be appointed of, any substantial part of the property of
Lessee; of if there shall be convened a meeting of the creditors or principal creditors of
Lessee.

          10. Remedies on Default. Upon the occurrence of any one or more of the foregoing
events of default Lessee’s right of possession shall thereupon cease and determine and Lessor
shall be entitled to possession of the Property and to reenter the same without further demand
of rent or demand of possession of the Property, and may, forthwith recover possession thereof
by whatever process of law as may be available, any notice to quit or of intention to reenter
being hereby expressly waived by Lessee, or Lessor may retake possession with process of law and
remove all persons and property therefrom without becoming liable in damages. In the event of
such reentry or retaking, Lessee shall, nevertheless, remain liable and answerable for the full
rental to the date of such retaking or recentry, and for the damages for the deficiency or loss of
rent which Lessor may thereby sustain in respect of the balance of the term; and in such
case, Lessor shall have the right, but shall not have the duty, to let the Property for
the benefit of and as the agent for Lessee, in liquidation and discharge, in whole or in
part, as the case may be, of the liability of Lessee hereunder, and such damages, at the
option of Lessor, may be recovered at the time of the retaking or reentry, or in separate
actions from time to time as Lessee’s obligation to pay rent would have accrued if the
term had continued, or from time to time as said damages shall have been made more easily
ascertainable by reletings, or such action, at the option of Lessor, may be deferred until
the expiration of the term, in which latter event, the cause of action shall not be deemed
to have accrued until the expiration of said term. Lessor, however, may refrain from
terminating Lessee’s right of possession, and in such case, may enforce against Lessee the
provisions of this Lease for the full term.

          11. Restrictions, Easements, Etc. The parties shall be bound by all existing
restrictions, easements, agreements, and encumbrances of record relating to the Property, and
Lessor shall not be liable to Lessee for any damages resulting from any action taken by a holder
of an interest pursuant to the rights of that holder thereunder.

          12. Quiet Enjoyment. Lessor warrants that Lessee shall be granted peaceful and
quiet enjoyment of the Property free from any eviction or interference by Lessor if Lessee pays
the rent provided herein, and otherwise fully and punctually performs the terms and conditions
imposed on Lessee.

          13. Liability of Lessor. Lessee shall be in exclusive control and possession of
the Property, and Lessor shall not be liable for any injury or damages to any property or to any
person on or about the Property nor for any injury or damage to any property of Lessee. Lessee

4

 

agrees to make no claim against Lessor and to assume responsibility of defending, at
Lessee’s expense, any claim which shall be made against Lessor by any agent, employee,
licensee, or invitee of Lessee or by others claiming the right to be on or about the
Property through or under Lessee for any injury, loss or damage to person or property
occurring upon the Property or the approaches thereto from any cause, and to save Lessor
harmless and indemnified from all loss, damage, liability, or expense incurred, suffered, or
claimed by reason of Lessee’s neglect or use of the Property or the approaches thereto.

          14. Warranties of Lessor. At the commencement of the term, Lessee shall accept the
buildings and improvements and any equipment in their existing condition and state of repair,
and Lessee agrees that no representations, statements, or warranties, express or implied, have
been made by or on behalf of Lessor in respect thereto except as contained in the provisions of
this Lease, and Lessor shall in no event be liable for any defects.

          15. Waivers. The failure of Lessor to insist on a strict performance of any of the
terms and conditions hereof shall be deemed a waiver of the rights of remedies that Lessor may
have regarding that specific instance only, and shall not be deemed a waiver of any subsequent
breach or default in any term and conditions.

          16. Surrender of Possession. Lessee shall, on the last day of the term, or on earlier
termination of the Lease, peaceably and quietly surrender and deliver the Property to
Lessor, including all buildings, additions, and improvements constructed or placed thereon
by Lessee, except moveable trade fixtures, all in good condition and repair. Any trade
fixtures or personal property not used in connection with the operation of the Property and
belonging to Lessee, if not removed at the termination or default, and if Lessor shall so
elect, shall be deemed abandoned and become the property of Lessor without any payment or
offset therefor. Upon the termination of this Lease by any of the means provided therein,
whether as a result of the expiration of time or the default of Lessee, all buildings and
improvements on the Property shall become the property of Lessor.

          17. Right to Assign: Lessee shall have the right to assign or pledge all of its
right, title and interest under this Lease as collateral to Lessee’s lender (“Lender”) for
construction and/or permanent financing for improvements to the Property. In the event of
default under the terms of any construction or permanent financing obtained by Lessee for the
improvements, Lessee’s Lender or any and all assignees of Lender throughout the term of this
Lease shall have the right to assign or assume this Lease without restriction. Lessee shall not
amend, supplement, cancel or terminate (other than by reasons of Lessee’s default following the
expiration of all cure periods, as described below) this Lease without the prior written
consent of Lender. Except as provided above, this Lease may not be assigned without the prior
written consent of Lessor. In the event of a default under the terms of this Lease, Lender and
its assignees shall receive notice of such a default and shall be provided a thirty (30) day
cure period (which shall be extended to a reasonable period in the case of defaults which are
not susceptible of cure within such thirty (30) day period) in addition to any cure periods
provided to Lessee under this Lease, prior to the termination of this Lease, due to a default
by Lessee. Lender and/or its assignees shall have the right, but not the duty, to reinstate
this Lease, following a termination resulting from Lessee’s

5

 

default, upon curing any monetary and other defaults which are susceptible to cure within
a reasonable period. In the event Lender becomes the lessee under this Lease, Lender’s
liability shall be limited to its interest in this Lease. All rights and liabilities
herein set forth are imposed upon the respective parties hereto and shall extend to and
bind the parties, their heirs, executors, administrators, successors and assigns.

          18. Condemnation. In the event of condemnation of all or part of the Property
by any governmental authority or public utility company or anyone else through the
exercise of the right of eminent domain, the Lessor shall be entitled first to receive
from the proceeds from such condemnation an amount equal to the value of the Property
taken and the damages to the residue of the Property. Lessee shall be entitled to the
residue of the proceeds from such condemnation. If less than 15% of the Property is so
condemned, this Lease shall remain in full force and effect without any reduction in
rental. If more than 15% of the Property is so condemned, Lessee shall have the option of
immediately terminating this Lease or continuing the Lease on the residue of the Property
on the same terms and conditions with no reduction in rental. Notice of Lessee’s election
under this paragraph must be given to Lessor in writing not later than thirty (30) days
after title to the property so condemned passes to the condemnor, and if such notice is
not given, it shall be deemed to be an election by Lessee to continue said Lease.

          19. Entire Agreement. This Lease contains the entire agreement between the
parties and cannot be changed or terminated except by a written instrument subsequently executed
by the parties thereto. This Lease and the terms and conditions hereof apply to and are
binding on the heirs, legal representatives, successors, and assigns of both parties.

          20. Applicable Law. This Lease shall be governed by and construed in
accordance with the laws of the Commonwealth of Virginia.

          21. Time of Essence. Time is of the essence in all provisions of this
Lease.

          22. Notice. All notices provided for herein shall be given in writing and
sent by certified mail to the parties at their addresses as shown below:

	 	 	 
	Lessor:

	 	Teresa M. Klaassen
	 

	 	Paul J. Klaassen
	 

	 	c/o Sunrise Assisted Living, Inc.
	 

	 	7902 Westpark Drive
	 

	 	McLean, Virginia 22102
	 
	 	 
	Lessee:

	 	Sunrise Fairfax Assisted Living, L.L.C.
	 

	 	c/o Sunrise Senior Living Investments, Inc.
	 

	 	7902 Westpark Drive
	 

	 	McLean, Virginia 22102
	 

	 	Attention: James S. Pope, Vice President

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          IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed on
their behalf on the year and day first herein mentioned.

	 	 	 	 	 
	 	LESSEE:

SUNRISE FAIRFAX ASSISTED LIVING, L.L.C., 

a Virginia limited liability company

By: Sunrise Senior Living Investments, Inc., 

       a Virginia corporation, its sole member

 	 
	 	By:  	/s/ James S. Pope
 	 
	 	 	James S. Pope, Vice President 	 
	 	 	 	 
	 
	 	LESSOR:

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

7

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF FAIRFAX

	 	 	)	 	 	 

     On
August 29, 2003, before me, Christy K. Reyes, personally appeared James S. Pope, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

WITNESS my hand and official seal

	 	 	 
	/s/ Christy K. Reyes
 

Signature

	 	  

			
	 	 	 
	My Commission Expires
September 30, 2005
	 	(This area for official notarial seal)

	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF FAIRFAX

	 	 	)	 	 	 

     On
August 29, 2003, before me Christy K. Reyes, personally appeared Paul J. Klaassen,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

WITNESS my hand and official seal

	 	 	 
	/s/ Christy K. Reyes
 

Signature

	 	  

			
	 	 	 
	My Commission Expires
September 30, 2005
	 	(This area for official notarial seal)

8

 

	 	 	 	 	 	 	 
	COMMONWEALTH OF VIRGINIA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF FAIRFAX

	 	 	)	 	 	 

     On
8/29/03, before me, Christy K. Reyes, personally appeared Teresa M. Klaassen,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.

WITNESS my hand and official seal

	 	 	 
	/s/ Christy K. Reyes
 

Signature

	 	  

			
	 	 	 
	My Commission Expires September 30, 2005
	 	(This area for official notarial seal)

9

 

EXHIBIT “A”

Legal Description

Lot 1, Subdivision of the Property of Paul J. Klaassen and Teresa M. Klaassen,
containing 1.7146 acres (74,687 square feet), more or less, as shown on a plat attached
to the Deed of Subdivision recorded in Deed Book 14587 at page 1319 among the land
records of Fairfax County, Virginia.

Being further described as follows:

Lot 1, Subdivision of the Property of Paul J. Klaassen and Teresa M. Klaassen,
Providence District, Fairfax County, Virginia:

“Beginning at a point in the south line of Arlington Boulevard — Route 50, said point
being N 88° 46’ 50” E, 41.19 feet from the northeast corner of now-or-formerly Thompson
Associates; thence with the south line of Arlington Boulevard — Route 50, N 88° 46’ 50” E, 342.25 feet to a point; thence through the property of Paul J.
Klaassen and Teresa M. Klaassen, S 22° 48’ 13” E, 127.51 feet to a point; thence S 11°
07’ 26” W, 181.41 feet to a point; thence S 89° 39’ 31” W, 70.61 feet to a point;
thence N 52° 20’ 24” W, 157.74 feet to a point; thence N 40° 40’ 54” W, 41.37 feet to a
point; thence S 49° 19’ 06” W, 25.56 feet to a point; thence N 41° 29’ 52” W, 59.99
feet to a point; thence N 48° 41’ 17” E, 29.82 feet to a point; thence N 51° 02’ 11” W,
123.94 feet to a point; thence N 01° 41’ 32” W, 35.06 feet to the point of beginning
and containing an area of 74,687 square feet or 1.7146 acres, more or less.”

10exv10w65

 

Exhibit 10.65

March 16, 2008                                        

William G. Little

Stephen D. Harlan

Special Independent Committee of the Sunrise Board of Directors

Sunrise Senior Living, Inc.

7902 Westpark Drive

McLean, Virginia 22102

Dear Bill and Steve:

     As the Chief Executive Officer of Sunrise Senior Living, Inc. (the “Company”), I am writing to
confirm the oral undertakings that I have made to the Company’s Board of Directors in anticipation
of the Company’s forthcoming restatement of financial results.

     I understand that the Board’s Special Independent Committee has identified inappropriate
accounting activity with respect to adjustments that were made to certain judgmental accruals and
reserves during the third quarter of 2003 through the fourth quarter of 2005. While I did not
engage in such inappropriate accounting activity nor was I aware of it, I recognize, as the CEO and
Founder of this Company, that such activity damaged the Company’s credibility with all of its
stakeholders and I share the Board’s deep disappointment in such activity.

     As the CEO of this Company, I am dedicated to re-establishing the appropriate tone and culture
necessary to restore an effective control environment. As a tangible demonstration of my
commitment to lead the Company forward, I affirm my voluntary, unilateral and unconditional
undertaking to repay the value of all bonus compensation I was awarded in 2003 through 2005. In
furtherance of that undertaking, I hereby transfer and surrender for cancellation to the Company
the following equity awards made to me for the years 2003 through 2005:

	 	1.	 	A total of 15,672 restricted stock units (post-split), constituting all of the
restricted stock units granted to me on September 10, 2003 and evidenced by that
certain Stock Unit Agreement (reflecting such grant date) attached as Exhibit A
hereto;
	 
	 	2.	 	A total of 17,815 restricted stock units, constituting all of the restricted
stock units granted to me on March 8, 2006 and evidenced by that certain Stock Unit
Agreement (reflecting such grant date) attached as Exhibit B hereto; and
	 
	 	3.	 	27,777 shares of restricted stock, constituting the remaining unvested portion
of the restricted stock granted to me on March 14, 2005 and evidenced by that certain
Executive Restricted Stock Agreement (reflecting such grant date) attached as
Exhibit C hereto.

 

 

     I hereby authorize the Company to direct the Company’s transfer agent to cancel the 27,777
shares of restricted stock referred to in paragraph 3 above, which are held by me in book-entry
form.

     In addition to the foregoing, I hereby authorize the Company to direct the Company’s transfer
agent to cancel 8,877 additional shares of common stock of the Company* held by me in book-entry
form, which represent the portion of the restricted stock granted to me on March 14, 2005 that
vested on March 14, 2006, net of applicable tax.

     I intend that all of the foregoing transfers and cancellations shall be effective immediately
upon your receipt of this letter.

     As a further demonstration of leadership and integrity at this critical juncture, I have
disclaimed any opportunity to receive bonuses for 2006 and 2007.

     I understand that this letter may be included or referred to in the Company’s public filings.

     These actions reflect my commitment to establish and maintain high standards of ethical
business practice and performance throughout the Company. As the Company’s CEO, I intend to
oversee management’s implementation of the Board’s remedial framework which will restore an
effective control environment. It is my expectation that implementation of this remedial framework
will help to restore the Company’s reputation and promote confidence in it among our employees, our
residents and their families, our shareholders, and the general market.

Sincerely yours,

/s/ Paul J. Klaassen

Paul J. Klaassen

 

			
	*	 	Calculated as follows: 13,889 shares that vested on March 14, 2006 minus ((13,889 shares x $24.00
per share (the closing price on the vesting date) x .364% (tax rate)) divided by $24.21 (the
closing price on March 12, 2008))

 

 

Exhibit A

SUNRISE SENIOR LIVING, INC.

2003 STOCK OPTION AND RESTRICTED STOCK PLAN

STOCK UNIT AGREEMENT

     Sunrise Senior Living, Inc., a Delaware corporation (the “Company”), hereby grants stock units
relating to shares of its common stock, $.01 par value (the “Stock”), to the Grantee named below,
subject to the vesting conditions set forth in the attachment. Additional terms and conditions of
the grant are set forth in this cover sheet, in the attachment and in the Company’s 2003 Stock
Option and Restricted Stock Plan (the “Plan”).

	 	 	 	 	 
	Grant Date: September 10, 2003

	 	 	 	 
	 
	 	 	 	 
	Name of Grantee: Paul J. Klaassen
	 	 	 	 
	 
	 	 	 	 
	Number of Units Covered by Grant:

	 	5,597 Base Units	 	 
	 
	 	 	 	 
	 

	 	2,239 Supplemental Units	 	 

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is available from the Company upon request.
You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in
the event any provision of this Agreement should appear to be inconsistent.

	 	 	 	 	 	 	 
	Grantee:	 	/s/ Paul J. Klaassen
 
	 	 
	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 
	Company:	 	/s/ Thomas B. Newell
 
	 	 
	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President

 
	 	 

Attachment

This is not a stock certificate or a negotiable instrument.

 

 

SUNRISE SENIOR LIVING, INC.

2003 STOCK OPTION AND RESTRICTED STOCK PLAN

STOCK UNIT AGREEMENT

	 	 	 
	Stock Unit/ Nontransferability

	 	This grant is an award of stock
units in the total number of Base
Units and Supplemental Units set
forth on the cover sheet and subject
to the vesting conditions described
below (collectively, the “Stock
Units”). Your Stock Units may not
be transferred, assigned, pledged or
hypothecated, whether by operation
of law or otherwise, nor may the
Stock Units be made subject to
execution, attachment or similar
process.
	 
	 	 
	Vesting

	 	Base Units shall be 100% vested as
of the Grant Date. Supplemental
Units shall become 100% vested on
the fourth anniversary of the Grant
Date (the “Vesting Date”); provided
you have been continuously employed
by the Company or a Subsidiary from
the Grant Date until the Vesting
Date.
	 
	 	 
	 

	 	Notwithstanding the vesting schedule
in the preceding paragraph, to the
extent not previously vested, your
Supplemental Units shall become 100%
vested upon the earlier of (i) a
Change in Control (as defined
below), (ii) your termination of
employment with the Company or a
Subsidiary due to your death or
disability, (iii) your termination
of employment by the Company or a
Subsidiary other than for Cause (as
defined in the Company’s Senior
Executive Severance Plan dated
February 25, 2000 (the “Severance
Plan”)), or (iv) termination of
employment by you for Good Reason
(as defined in the Severance Plan),
if you have been continuously
employed by the Company or a
Subsidiary from the Grant Date.
	 
	 	 
	 

	 	For purposes of this Agreement,
“Change in Control” means any of the
following events:
	 
	 	 
	 

	 	          (a) any person (as such term is used
in Rule 13d-5 under the Securities
Exchange Act of 1934 (“Exchange
Act”) or group (as such term is
defined in Section 3(a)(9) and
13(d)(3) of the Exchange Act), other
than a subsidiary or any employee
benefit plan (or any related trust)
of the Company or a Subsidiary,
becomes, after the Grant Date, the
beneficial owner of Stock or of
other securities of the Company that
are entitled to vote generally in
the election of directors of the
Company (“Voting Securities”)
representing 50% or more of the
combined voting power of all Voting
Securities of the Company;
	 
	 	 
	 

	 	          (b) individuals who, as of the Grant
Date,

 

 

	 	 	 
	 

	 	constitute the Board (the
“Incumbent Board”) cease for any
reason to constitute a majority of
the members of the Board; provided
that any individual who becomes a
director after the Grant Date whose
election or nomination for election
by the Company’s shareholders was
approved by a majority of the
members of the Incumbent Board
(other than an election or
nomination of an individual whose
initial assumption of office is in
connection with an actual or
threatened “election contest”
relating to the election of the
directors of the Company (as such
terms are used in Rule 14a-11 under
the Exchange Act), “tender offer”
(as such term is used in Section
14(d) of the Exchange Act) or a
proposed Merger (as defined below))
shall be deemed to be members of the
Incumbent Board; or
	 
	 	 
	 

	 	          (c) approval by the stockholders of
the Company of either of the
following: (i) a merger,
reorganization, consolidation or
similar transaction (any of the
foregoing, a “Merger”) as a result
of which the persons who were the
respective beneficial owners of the
outstanding Stock and Voting
Securities of the Company
immediately before such Mergers are
not expected to beneficially own,
immediately after such Merger,
directly or indirectly, more than
60% of the Stock and 60% of the
combined voting power of the Voting
Securities of the Company resulting
from such Merger in substantially
the same proportions as immediately
before such Merger or (ii) a plan of
liquidation of the Company or a plan
or agreement for the sale or other
disposition of all or substantially
all of the assets of the Company.
	 
	 	 
	 

	 	Notwithstanding the foregoing, there
shall not be a Change in Control if,
in advance of such event, you agree
in writing that such event shall not
constitute a Change in Control.
	 
	 	 
	 

	 	No Stock Units will vest after you
have ceased to be employed by the
Company or any Subsidiary for any
reason.
	 
	 	 
	Delivery of Shares

	 	Unless you previously elected to
defer the payment of the Stock Units
into the Company’s Executive
Deferred Compensation Plan, a
certificate for all of the shares of
Stock represented by your Base Units
and Supplemental Units shall be
delivered to you on the Vesting
Date; provided, that, if the Vesting
Date occurs during a window period
in which you are restricted from
selling Stock in the open market
because a trading window is not
available, delivery of such shares
will be delayed until the date
immediately following the opening of
a trading window.
	 
	 	 
	 

	 	In the event that your employment with the Company or a

 

 

	 	 	 
	 

	 	Subsidiary
terminates prior to the time at
which your Supplemental Shares
become vested, upon your termination
of employment the Company will
deliver to you your Base Units and
you will forfeit your unvested
Supplemental Units.
	 
	 	 
	Withholding Taxes

	 	You agree, as a condition of this
grant, that you will make acceptable
arrangements to pay any withholding
or other taxes that may be due as a
result of the vesting and/or
delivery of Stock pursuant to this
grant. In the event that the
Company determines that any federal,
state, local or foreign tax or
withholding payment is required
relating to the vesting and/or
delivery of shares arising from this
grant, the Company shall have the
right to require such payments from
you, withhold such amounts from
other payments due to you from the
Company or any Affiliate or cause an
immediate forfeiture of shares Stock
subject to the Stock Units granted
pursuant to this Agreement in an
amount equal to the withholding or
other taxes due.
	 
	 	 
	Retention Rights

	 	This Agreement does not give you the
right to be retained by the Company
in any capacity. The Company
reserves the right to terminate your
service with the Company at any time
and for any reason.
	 
	 	 
	Shareholder Rights

	 	You do not have the rights of a
shareholder with respect to the
Stock Units unless and until the
Stock relating to the Stock Units
has been delivered to you. You
will, however, be entitled to
receive an amount equal to any
dividends declared or paid on such
Stock. Any distributions you
receive as a result of any stock
split, stock dividend, combination
of shares or other similar
transaction shall be deemed to be a
part of the Stock Units and subject
to the same conditions and
restrictions applicable thereto.
The Company may in its sole
discretion require that any amounts
paid as dividend equivalents in
connection with the Stock Units be
treated as reinvested in Stock Units
and subject to the same conditions
and restrictions applicable thereto.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Stock, the number of Stock
Units covered by this grant may be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your Stock Units shall be
subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of

 

 

	 	 	 
	 

	 	law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan.
	 
	 	 
	 

	 	This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this grant of Stock Units.
Any prior agreements, commitments
or negotiations concerning this
grant are superseded.

     By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

 

 

Exhibit B

SUNRISE SENIOR LIVING, INC.

2003 STOCK OPTION AND RESTRICTED STOCK PLAN

STOCK UNIT AGREEMENT

     Sunrise Senior Living, Inc., a Delaware corporation (the “Company”), hereby grants stock units
relating to shares of its common stock, $.01 par value (the “Stock”), to the Grantee named below,
subject to the vesting conditions set forth in the attachment. Additional terms and conditions of
the grant are set forth in this cover sheet, in the attachment and in the Company’s 2003 Stock
Option and Restricted Stock Plan (the “Plan”).

	 	 	 	 	 
	Grant Date:

	 	March 8, 2006 

	 	 

	 	 	 	 	 
	Name of Grantee:

	 	Paul J. Klaassen 

	 	 

	 	 	 
	Number of Units Covered by Grant:
	 	12,725 Base Units
	 
	 	 
	 
	 	5,090 Supplemental Units
	 
	 	 
	Purchase Price per Share of Stock:
	 	$0.01

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is available from the Company upon request.
You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in
the event any provision of this Agreement should appear to be inconsistent.

	 	 	 	 	 
	 
	 	 	 	 
	Grantee:

	 	/s/ Paul J. Klaassen 

	 	 
	 

	 	(Signature)	 	 
	 
	 	 	 	 
	Company:

	 	/s/ Thomas B. Newell 
	 	 
	 

	 	(Signature)	 	 
	 
	 	 	 	 
	Title:

	 	Thomas B. Newell, President 
	 	 

Attachment

This is not a stock certificate or a negotiable instrument.

 

 

SUNRISE SENIOR LIVING, INC.

2003 STOCK OPTION AND RESTRICTED STOCK PLAN

STOCK UNIT AGREEMENT

	 	 	 
	Stock Unit/ Nontransferability

	 	This grant is an award of stock
units in the total number of Base
Units and Supplemental Units set
forth on the cover sheet at the
purchase price set forth on the
cover sheet, and subject to the
vesting conditions described below
(collectively, the “Stock Units”).
The purchase price for the Stock is
deemed paid by your services to the
Company. Your Stock Units may not
be transferred, assigned, pledged or
hypothecated, whether by operation
of law or otherwise, nor may the
Stock Units be made subject to
execution, attachment or similar
process.
	 
	 	 
	Vesting

	 	Base Units shall be 100% vested as
of the Grant Date. Supplemental
Units shall become 100% vested on
the fourth anniversary of the Grant
Date (the “Vesting Date”); provided
you have been continuously employed
by the Company or a Subsidiary from
the Grant Date until the Vesting
Date.
	 
	 	 
	 

	 	Notwithstanding the vesting schedule
in the preceding paragraph, to the
extent not previously vested, your
Supplemental Units shall become 100%
vested upon the earlier of (i) a
Change in Control (as defined
below), (ii) your termination of
employment with the Company or a
Subsidiary due to your death or
disability, (iii) your termination
of employment by the Company or a
Subsidiary other than for Cause (as
defined in the Company’s Senior
Executive Severance Plan dated
November 16, 2005 (the “Severance
Plan”)), or (iv) termination of
employment by you for Good Reason
(as defined in the Severance Plan),
if you have been continuously
employed by the Company or a
Subsidiary from the Grant Date.
	 
	 	 
	 

	 	For purposes of this Agreement,
“Change in Control” means any of the
following events:
	 
	 	 
	 

	 	     (A) any person, other than Paul J.
Klaassen, Teresa M. Klaassen or
their respective affiliates,
associates or estates, becomes,
after the date of grant, the
beneficial owner, directly or
indirectly, of securities of the
Company representing 40% or more of
the combined voting power of the
Company’s then outstanding
securities;
	 
	 	 
	 

	 	     (B) during any two-year period,
individuals who at the beginning of
such period constitute the Board
(including, for this purpose, any
director who after the beginning of
such

 

 

	 	 	 
	 

	 	period filled a vacancy on the
Board caused by the resignation,
mandatory retirement, death, or
disability of a director and whose
election or appointment was approved
by a vote of at least two-thirds of
the directors then in office who
were directors at the beginning of
such period) cease for any reason to
constitute a majority thereof;
	 
	 	 
	 

	 	     (C) notwithstanding clauses (A) or
(E) of this paragraph, the Company
consummates a merger or
consolidation of the Company with or
into another corporation, the result
of which is that the persons who
were stockholders of the Company at
the time of the execution of the
agreement to merge or consolidate
own less than 80% of the total
equity of the corporation surviving
or resulting from the merger or
consolidation or of a corporation
owning, directly or indirectly, 100%
of the total equity of such
surviving or resulting corporation;
	 
	 	 
	 

	 	     (D) the sale in one or a series of
transactions of all or substantially
all of the assets of the Company;
	 
	 	 
	 

	 	     (E) any person, other than Paul J.
Klaassen, Teresa M. Klaassen or
their respective affiliates,
associates or estates, has commenced
a tender or exchange offer, or
entered into an agreement or
received an option, to acquire
beneficial ownership of securities
of the Company representing 40% or
more of the combined voting power of
the Company’s then outstanding
securities, unless the Board has
made a determination that such
action does not constitute and will
not constitute a material change in
the persons having control of the
Company;
	 
	 	 
	 

	 	     (F) the consummation by the Company
or a Subsidiary of a merger
(including a triangular merger
involving a Subsidiary) or other
business combination transaction in
which the Company issues equity
securities representing 20% or more
of its then outstanding common stock
in such merger or other transaction;
or
	 
	 	 
	 

	 	     (G) there is a change of control in
the Company of a nature that would
be required to be reported in
response to Item 6(e) of Schedule
14A of Regulation 14A promulgated
under the Exchange Act other than in
circumstances specifically covered
by clauses (A) through (F) above.
	 
	 	 
	 

	 	No Stock Units will vest after you
have ceased to be employed

 

 

	 	 	 
	 

	 	by the
Company or any Subsidiary for any
reason.
	 
	 	 
	Delivery of Shares

	 	Unless you previously elected in
writing to further defer the payment
of the Stock Units until either (i)
a specified date that is permissible
payment date pursuant to Section
409A of the Internal Revenue Code of
1986, as amended or (ii) Retirement
(as such term is defined in the
Company’s Executive Deferred
Compensation Plan), which election,
in either case, provides for the
payment of only the vested portion
of the Stock Units if employment
terminates earlier than the
specified payment date, a
certificate for all of the shares of
Stock represented by your Base Units
and Supplemental Units shall be
delivered to you on the Vesting
Date; provided, that, if the Vesting
Date occurs during a window period
in which you are restricted from
selling Stock in the open market
because a trading window is not
available, delivery of such shares
will be delayed until the date
immediately following the opening of
a trading window. If you previously
elected in writing to further defer
the payment of the Stock Units as
contemplated above, a certificate
for all of the shares of Stock
represented by your Base Units and
Supplemental Units shall be
delivered to you on the specified
payment date, subject to the same
window period restrictions set forth
in the preceding sentence (or, if
your employment terminates earlier
than the specified payment date,
such certificate shall be delivered,
as to the vested portion of the
Stock Units only, within 10 days
after such termination date).
	 
	 	 
	 

	 	In the event that your employment
with the Company or a Subsidiary
terminates prior to the time at
which your Supplemental Shares
become vested, upon your termination
of employment the Company will
deliver to you your Base Units and
you will forfeit your unvested
Supplemental Units.
	 
	 	 
	Withholding Taxes

	 	You agree, as a condition of this
grant, that you will make acceptable
arrangements to pay any withholding
or other taxes that may be due as a
result of the vesting and/or
delivery of Stock pursuant to this
grant. In the event that the
Company determines that any federal,
state, local or foreign tax or
withholding payment is required
relating to the vesting and/or
delivery of shares arising from this
grant, the Company shall have the
right to require such payments from
you, withhold such amounts from
other payments due to you from the
Company or any Affiliate or cause an
immediate forfeiture of shares Stock
subject to the Stock Units granted
pursuant to this Agreement in an
amount equal to the withholding or
other taxes due.
	 
	 	 
	Retention Rights

	 	This Agreement does not give you the
right to be retained by the

 

 

	 	 	 
	 

	 	Company
in any capacity. The Company
reserves the right to terminate your
service with the Company at any time
and for any reason.
	 
	 	 
	Shareholder Rights

	 	You do not have the rights of a
shareholder with respect to the
Stock Units unless and until the
Stock relating to the Stock Units
has been delivered to you. You
will, however, be entitled to
receive an amount equal to any
dividends declared or paid on such
Stock. Any distributions you
receive as a result of any stock
split, stock dividend, combination
of shares or other similar
transaction shall be deemed to be a
part of the Stock Units and subject
to the same conditions and
restrictions applicable thereto.
The Company may in its sole
discretion require that any amounts
paid as dividend equivalents in
connection with the Stock Units be
treated as reinvested in Stock Units
and subject to the same conditions
and restrictions applicable thereto.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Stock, the number of Stock
Units covered by this grant may be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your Stock Units shall be
subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan.
	 
	 	 
	 

	 	This Agreement, the Plan and the
further deferral election referenced
under “Delivery of Shares” hereunder
constitute the entire understanding
between you and the Company
regarding this grant of Stock Units.
Any prior agreements, commitments
or negotiations concerning this
grant are superseded.

     By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

 

 

Exhibit C

SUNRISE SENIOR LIVING, INC.

2002 STOCK OPTION AND RESTRICTED STOCK PLAN

EXECUTIVE RESTRICTED STOCK AGREEMENT

     Sunrise Senior Living, Inc., a Delaware corporation (the “Company”), hereby grants shares of
its common stock, $0.01 par value (the “Stock”), to the Grantee named below, subject to the vesting
conditions set forth in the attachment. Additional terms and conditions of the grant are set forth
in this cover sheet, in the attachment and in the Company’s 2002 Stock Option and Restricted Stock
Plan (the “Plan”).

Grant Date: March 14, 2005

Name of Grantee: Paul J. Klaassen

Number of Shares of Stock Covered by Grant: 20,833

Purchase Price per Share of Stock: $0.01

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is available from the Company upon request.
You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in
the event any provision of this Agreement should appear to be inconsistent.

	 	 	 	 	 	 	 
	Grantee:	 	/s/ Paul J. Klaassen 
	 	 
	 

	 	Print Name:
	 	Paul J. Klaassen	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Company:	 	/s/ Thomas B. Newell 
	 	 
	 

	 	Print Name:
	 	Thomas B. Newell	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	President	 	 
	 

	 	 	 	 	 	 

Attachment

This is not a stock certificate or a negotiable instrument.

 

 

SUNRISE SENIOR LIVING, INC.

2002 STOCK OPTION AND RESTRICTED STOCK PLAN

EXECUTIVE RESTRICTED STOCK AGREEMENT

	 	 	 
	Restricted Stock/ Nontransferability

	 	This grant is an award of Stock in
the number of shares set forth on
the cover sheet, at the purchase
price set forth on the cover
sheet, and subject to the vesting
conditions described below (the
“Restricted Stock”). The purchase
price for the Restricted Stock is
deemed paid by your services to
the Company. To the extent not
yet vested, your Restricted Stock
may not be transferred, assigned,
pledged or hypothecated, whether
by operation of law or otherwise,
nor may the Restricted Stock be
made subject to execution,
attachment or similar process.
	 
	 	 
	Issuance and Vesting

	 	The Company will issue your
Restricted Stock in your name as
of the Grant Date.
	 
	 	 
	 

	 	Your right to the Stock under this
Restricted Stock grant becomes
vested as to 33% of the shares of
Stock on each of the first three
(3) anniversaries of the Grant
Date (the “Anniversary Dates”), if
you have been continuously
providing Services to the Company
or a Subsidiary from the Grant
Date until the Anniversary Date;
provided, however, that if you are
restricted from selling Company
stock on an Anniversary Date
pursuant to the Company’s policy
on insider trading, your shares
that would have vested on that
Anniversary Date will vest on the
first date that is during a window
period in which Company insiders
are not restricted from selling
Company stock.
	 
	 	 
	 

	 	Notwithstanding the vesting
schedule to the extent not
previously vested, your right to
the Stock under this Agreement
becomes 100% vested upon the
earlier of (i) a Change in Control
(as defined below), (ii) your
termination of employment with the
Company or a Subsidiary due to
your death or disability, (iii)
your termination of employment by
the Company or a Subsidiary other
than for Cause (as defined in the
Company’s Senior Executive
Severance Plan dated February 25,
2000 (the “Severance Plan”)), or
(iv) termination of employment by
you for Good Reason (as defined in
the Severance Plan), if you have
been continuously employed by the
Company or a Subsidiary from the
Grant Date.
	 
	 	 
	 

	 	For purposes of this Agreement,
“Change in Control” means any of
the following events:
	 
	 	 
	 

	 	     (A) any person, other than Paul J.
Klaassen, Teresa M.

 

 

	 	 	 
	 

	 	Klaassen or
their respective affiliates,
associates or estates, becomes,
after the date of grant, the
beneficial owner, directly or
indirectly, of securities of the
Company representing 40% or more
of the combined voting power of
the Company’s then outstanding
securities;
	 
	 	 
	 

	 	     (B) during any two-year period,
individuals who at the beginning
of such period constitute the
Board (including, for this
purpose, any director who after
the beginning of such period
filled a vacancy on the Board
caused by the resignation,
mandatory retirement, death, or
disability of a director and whose
election or appointment was
approved by a vote of at least
two-thirds of the directors then
in office who were directors at
the beginning of such period)
cease for any reason to constitute
a majority thereof;
	 
	 	 
	 

	 	     (C) notwithstanding clauses (A) or
(E) of this paragraph, the Company
consummates a merger or
consolidation of the Company with
or into another corporation, the
result of which is that the
persons who were stockholders of
the Company at the time of the
execution of the agreement to
merge or consolidate own less than
80% of the total equity of the
corporation surviving or resulting
from the merger or consolidation
or of a corporation owning,
directly or indirectly, 100% of
the total equity of such surviving
or resulting corporation;
	 
	 	 
	 

	 	     (D) the sale in one or a series of
transactions of all or
substantially all of the assets of
the Company;
	 
	 	 
	 

	 	     (E) any person, other than Paul J.
Klaassen, Teresa M. Klaassen or
their respective affiliates,
associates or estates, has
commenced a tender or exchange
offer, or entered into an
agreement or received an option,
to acquire beneficial ownership of
securities of the Company
representing 40% or more of the
combined voting power of the
Company’s then outstanding
securities, unless the Board has
made a determination that such
action does not constitute and
will not constitute a material
change in the persons having
control of the Company;
	 
	 	 
	 

	 	     (F) the consummation by the
Company or a Subsidiary of a
merger (including a triangular
merger involving a Subsidiary) or
other business combination
transaction in which the Company
issues equity securities
representing 20% or more of its
then outstanding common stock in
such merger or other

 

 

	 	 	 
	 

	 	transaction;
or
	 
	 	 
	 

	 	     (G) there is a change of control
in the Company of a nature that
would be required to be reported
in response to Item 6(e) of
Schedule 14A of Regulation 14A
promulgated under the Exchange Act
other than in circumstances
specifically covered by clauses
(A) through (F) above.
	 
	 	 
	 

	 	Notwithstanding the foregoing,
there shall not be a Change in
Control if, in advance of such
event, you agree in writing that
such event shall not constitute a
Change in Control.
	 
	 	 
	 

	 	No additional shares of Stock will
vest after you have ceased to be
employed by the Company or any
Subsidiary for any reason.
	 
	 	 
	Forfeiture of Unvested Stock

	 	In the event that your employment
with the Company or a Subsidiary
terminates, you shall forfeit all
of the shares of Stock subject to
this grant that have not yet
vested.
	 
	 	 
	Book Entry Restrictions

	 	The Restricted Stock will be
issued in book entry form. The
Company shall cause the transfer
agent for the shares of Common
Stock to make a book entry record
showing ownership for the shares
of Restricted Stock in your name
subject to the terms and
conditions of this Agreement. You
shall be issued an account
statement acknowledging your
ownership of the shares of
Restricted Stock.
	 
	 	 
	 

	 	The shares of Restricted Stock
subject to restrictions hereunder
shall be subject to the following
terms and conditions relating to
their release from restrictions or
their cancellation:

	 	 	 
	 

	 	As your interest in the Restricted
Stock vests as described above,
your vested Stock shall be
released from restrictions and
delivered to you, at your request.
	 
	 	 
	 

	 	Should you forfeit any unvested
Restricted Stock held subject to
restrictions hereunder, then such
unvested Restricted Stock shall be
cancelled without payment, and you
shall have no further rights with
respect to such shares.

	 	 	 
	 

	 	You authorize the Company to issue
such instructions to the transfer
agent as the Company may deem
necessary or proper to comply with
the intent and purposes of this
Agreement. This paragraph shall
be deemed to constitute the stock
power contemplated by the Plan.

 

 

	 	 	 
	Withholding Taxes

	 	You agree, as a condition of this
grant, that you will make
acceptable arrangements to pay any
withholding or other taxes that
may be due as a result of the
vesting of Stock acquired under
this grant. In the event that the
Company determines that any
federal, state, local or foreign
tax or withholding payment is
required relating to the vesting
of shares arising from this grant,
the Company shall have the right
to require such payments from you,
or withhold such amounts from
other payments due to you from the
Company or any Affiliate.
	 
	 	 
	Section 83(b)
Election

	 	Under Section 83 of the Internal
Revenue Code of 1986, as amended
(the “Code”), the difference
between the purchase price paid
for the shares of Stock and their
fair market value on the date any
forfeiture restrictions applicable
to such shares lapse will be
reportable as ordinary income at
that time. For this purpose,
“forfeiture restrictions” include
the Company’s Repurchase Right as
to unvested Stock described above.
You may elect to be taxed at the
time the shares in restricted form
are acquired rather than when such
shares cease to be subject to such
forfeiture restrictions by filing
an election under Section 83(b) of
the Code with the Internal Revenue
Service within thirty (30) days
after the Grant Date. You will
have to make a tax payment to the
extent the purchase price ($0.01
per share) is less than the fair
market value of the shares on the
Grant Date. The form for making
this election is attached as
Exhibit A hereto. Failure to make
this filing within the thirty (30)
day period will result in the
recognition of ordinary income by
you (in the event the fair market
value of the shares increases
after the date of purchase) as the
forfeiture restrictions lapse.
	 
	 	 
	 

	 	YOU ACKNOWLEDGE THAT IT IS YOUR
SOLE RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY
ELECTION UNDER SECTION 83(b), EVEN
IF YOU REQUEST THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THIS
FILING ON YOUR BEHALF. YOU ARE
RELYING SOLELY ON YOUR OWN
ADVISORS WITH RESPECT TO THE
DECISION AS TO WHETHER OR NOT TO
FILE ANY 83(b) ELECTION.
	 
	 	 
	Retention Rights

	 	This Agreement does not give you
the right to be retained by the
Company in any capacity. The
Company reserves the right to
terminate your service with the
Company at any time and for any
reason.
	 
	 	 
	Shareholder Rights

	 	You shall have the right to vote
the Restricted Stock and, subject
to the provisions of this
Agreement, to receive any
dividends

 

 

	 	 	 
	 

	 	declared or paid on such
stock. Any distributions you
receive as a result of any stock
split, stock dividend, combination
of shares or other similar
transaction shall be deemed to be
a part of the Restricted Stock and
subject to the same conditions and
restrictions applicable thereto.
The Company may in its sole
discretion require any dividends
paid on the Restricted Stock to be
reinvested in shares of Stock,
which the Company may in its sole
discretion deem to be a part of
the shares of Restricted Stock and
subject to the same conditions and
restrictions applicable thereto.
Except as described in the Plan,
no adjustments are made for
dividends or other rights if the
applicable record date occurs
before your stock certificate is
issued.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Stock, the number of shares
covered by this grant may be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your Restricted Stock
shall be subject to the terms of
the agreement of merger,
liquidation or reorganization in
the event the Company is subject
to such corporate activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise
refer construction or
interpretation of this Agreement
to the substantive law of another
jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is
incorporated in this Agreement by
reference. Certain capitalized
terms used in this Agreement are
defined in the Plan, and have the
meaning set forth in the Plan.
	 
	 	 
	 

	 	This Agreement and the Plan
constitute the entire
understanding between you and the
Company regarding this grant of
Restricted Stock. Any prior
agreements, commitments or
negotiations concerning this grant
are superseded.

     By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

 

 

EXHIBIT A

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE

     The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue
Code with respect to the property described below and supplies the following information in
accordance with the regulations promulgated thereunder:

	 	 	 	 	 	 	 
	1.	 	The name, address and social security number of the undersigned:	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	Social Security No.:	 	 	 	 
	 

	 	 	 	 
	 	 

	 	 	 
	2.

	 	Description of property with respect to which the election is being made:
	 
	 	 
	 

	 	                                        shares of common stock, par value $0.01 per share, of Sunrise Senior Living, Inc., a
Delaware corporation (the “Company”).
	 
	 	 
	3.

	 	The date on which the property was transferred is:                                         , 200     .
	 
	 	 
	4.
	 	The taxable year to which this election relates is calendar year: 200     .
	 
	 	 
	5.

	 	Nature of restrictions to which the property is subject:
	 
	 	 
	The shares of stock are subject to the provisions of a Restricted Stock Agreement between the
undersigned and the Company. The shares of stock are subject to forfeiture under the terms of
the Agreement.
	 
	 	 
	6.

	 	The fair market value of the property at the time of transfer (determined without regard to
any lapse restriction) was: $                
                    
     per share, for a total of $           
                    
         .
	 
	 	 
	7.

	 	The amount paid by taxpayer for the property was: $                                        .
	 
	 	 
	8.

	 	A copy of this statement has been furnished to the Company.

Dated:                                         , 200     

	 	 	 	 	 
	 	 	 

	 

	 	Print Name:	 	 
	 

	 	 	 	 

 

 

PROCEDURES FOR MAKING ELECTION

UNDER INTERNAL REVENUE CODE SECTION 83(b)

     The following procedures must be followed with respect to the attached form for making an
election under Internal Revenue Code section 83(b) in order for the election to be effective:

          1. You must file one copy of the completed election form with the IRS Service Center where
you file your federal income tax returns within thirty (30) days after the Grant Date of your
Restricted Stock.

          2. At the same time you file the election form with the IRS, you must also give a copy of the
election form to the Stock Plan Administrator of the Company.

          3. You must file another copy of the election form with your federal income tax return
(generally, Form 1040) for the taxable year in which the stock is transferred to you.

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