Document:

exhibit10_1.htm

     

    

    BROOKDALE
SENIOR LIVING INC.

    ASSOCIATE
STOCK PURCHASE PLAN

    

    ARTICLE
I.

    INTRODUCTION

    

    1.1           ESTABLISHMENT
OF PLAN.  Brookdale Senior Living Inc., a Delaware corporation
(the “Company”), adopts the following employee stock purchase plan for its
eligible employees.  This Plan shall be known as the Brookdale Senior
Living Inc. Associate Stock Purchase Plan.

    

    1.2           PURPOSE. The
purpose of this Plan is to provide an opportunity for eligible employees of the
Employer to become stockholders in the Company.  It is believed that
broad-based employee participation in the ownership of the business will help to
achieve the unity of purpose conducive to the continued growth of the Employer
and to the mutual benefit of its employees and stockholders.

    

    1.3           QUALIFICATION. This
Plan is intended to be an employee stock purchase plan which qualifies for
favorable Federal income tax treatment under Section 423 of the Code and is
intended to comply with the provisions thereof, including the requirement of
Section 423(b)(5) of the Code that all Employees granted options to purchase
Stock under the Plan have the same rights and privileges with respect to such
options.

    

    1.4           RULE 16B-3
COMPLIANCE.  This Plan is intended to comply with Rule 16b-3
under the Securities Exchange Act of 1934, and should be interpreted in
accordance therewith.

    

    ARTICLE
II.

    DEFINITIONS

    

    As used herein, the following words and
phrases shall have the meanings specified below:

    

    2.1           BOARD OF
DIRECTORS.  The Board of Directors of the Company.

    

    2.2           CLOSING MARKET
PRICE.  The last sale price of the Stock as reported on the New
York Stock Exchange on the date specified; provided that if there should be any
material alteration in the present system of reporting sales prices of such
Stock, or if such Stock should no longer be listed on the New York Stock
Exchange, the market value of the Stock as of a particular date shall be
determined in such a method as shall be specified by the Plan
Administrator.

    

    2.3           CODE.  The Internal
Revenue Code of 1986, as amended from time to time.

    

    2.4           COMMENCEMENT
DATE.  The first day of each Option Period.  The
first Commencement Date shall be October 1, 2008.

    

    2.5           CONTRIBUTION
ACCOUNT.  The account established on behalf of a Participant to
which shall be credited the amount of the Participant’s contribution, pursuant
to Article V.

    

    2.6           EFFECTIVE
DATE.  October 1, 2008.

    

    2.7           EMPLOYEE.  Each
employee of the Employer except:

    

     
(a)           any
employee who has been employed less than six (6) months;

     

     
(b)           any
employee whose customary employment is twenty (20) hours per week or less;
or

    

     
(c)           any
employee whose customary employment is for not more than five (5) months in any
calendar year.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    

    2.8           EMPLOYER.  The
Company and any corporation (i) which is a Subsidiary of the Company, (ii) which
is authorized by the Board of Directors to adopt this Plan with respect to its
Employees, and (iii) which adopts this Plan.  The term “Employer”
shall include any corporation into which an Employer may be merged or
consolidated or to which all or substantially all of its assets may be
transferred, provided that the surviving or transferee corporation would qualify
as a Subsidiary under Section 2.18 hereof and that such corporation does not
affirmatively disavow this Plan.  For purposes of this Plan, the term
“corporation” means a corporation as defined in Section 1.421-1(i)(1) of the
Treasury Regulations, which definition includes a limited liability company
taxable as a corporation for all Federal tax purposes.

    

    2.9           EXERCISE DATE.  The
last trading date of each Option Period on the New York Stock
Exchange.

    

    2.10         EXERCISE PRICE.  The
price per share of the Stock to be charged to Participants at the Exercise Date,
as determined in Section 6.3.

    

    2.11         FIVE-PERCENT
STOCKHOLDER.  An Employee who owns five percent (5%) or more of
the total combined voting power or value of all classes of stock of the Company
or any Subsidiary thereof. In determining this five percent test, shares of
stock which the Employee may purchase under outstanding options, as well as
stock attributed to the Employee under Section 424(d) of the Code, shall be
treated as stock owned by the Employee in the numerator, but shares of stock
which may be issued under options shall not be counted in the total of
outstanding shares in the denominator.

    

    2.12         GRANT DATE.  The
first trading date of each Option Period on the New York Stock
Exchange.

    

    2.13         OPTION
PERIOD.  Successive periods of three (3) months (i) commencing
on July 1 and ending on September 30, (ii) commencing on October 1 and ending on
December 31, (iii) commencing on January 1 and ending on March 31, and (iv)
commencing on April 1 and ending on June 30.

    

    2.14         PARTICIPANT.  Any
Employee of an Employer who has met the conditions for eligibility as provided
in Article IV and who has elected to participate in the Plan.

    

    2.15         PLAN.  Brookdale
Senior Living Inc. Associate Stock Purchase Plan.

    

    2.16         PLAN
ADMINISTRATOR.  The committee composed of one or more
individuals to whom authority is delegated by the Board of Directors to
administer the Plan.  The initial committee shall be the Compensation
Committee of the Board of Directors.

    

    2.17         STOCK.  Those shares
of common stock of the Company which are reserved pursuant to Section 6.1 for
issuance upon the exercise of options granted under this Plan.

    

    2.18         SUBSIDIARY.  Any
corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the time of the granting of the option, each
of the corporations other than the last corporation in the chain owns stock
possessing fifty percent (50%) or more of the combined voting power of all
classes of stock in one of the other corporations in such chain.

    

    ARTICLE
III.

    STOCKHOLDER
APPROVAL

    

    3.1           STOCKHOLDER APPROVAL
REQUIRED.  This Plan must be approved by the stockholders of
the Company within the period beginning twelve (12) months before and ending
twelve (12) months after its adoption by the Board of Directors.

    

    3.2           STOCKHOLDER APPROVAL FOR CERTAIN
AMENDMENTS.  Without the approval of the stockholders of the
Company, no amendment to this Plan shall increase the number of shares reserved
under the Plan, other than as provided in Sections 6.1 and 10.3. Approval by
stockholders must occur within one (1) year of such amendment or such amendment
shall be void ab initio, comply with
applicable provisions of the corporate

    

    
      
        
           

        

        
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    certificate
of incorporation and bylaws of the Company, and comply with Delaware law
prescribing the method and degree of stockholder approval required for issuance
of corporate stock or options.

    

    ARTICLE
IV.

    ELIGIBILITY
AND PARTICIPATION

    

    4.1           CONDITIONS.  Each
Employee shall become eligible to become a Participant on the Commencement Date
next following the date he has been employed for six (6) months.  No
Employee who is a Five-Percent Stockholder shall be eligible to participate in
the Plan.  Notwithstanding anything to the contrary contained herein,
no individual who is not an Employee shall be granted an option to purchase
Stock under the Plan.

    

    4.2           APPLICATION FOR
PARTICIPATION.  Each Employee who becomes eligible to
participate shall be furnished a summary of the Plan and an enrollment
form.  If such Employee elects to participate hereunder, he shall
complete such form and file it with his Employer no later than fifteen (15) days
prior to the next Commencement Date. The completed enrollment form shall
indicate the amount of Employee contributions authorized by the
Employee.  If no new enrollment form is filed by a Participant in
advance of any Option Period after the initial Option Period, that Participant
shall be deemed to have elected to continue to participate with the same
contribution previously elected (subject to the limit of fifteen percent (15%)
of base pay).  If any Employee does not elect to participate in any
given Option Period, he may elect to participate on any future Commencement Date
so long as he continues to meet the eligibility requirements.

    

    4.3           DATE OF
PARTICIPATION.  All Employees who elect to participate shall be
enrolled in the Plan commencing with the first pay date after the Commencement
Date following their submission of the enrollment form.  Upon becoming
a Participant, the Participant shall be bound by the terms of this Plan,
including any amendments whenever made.

    

    4.4           ACQUISITION OR CREATION OF
SUBSIDIARY.  If the stock of a corporation is acquired by the
Company or another Employer so that the acquired corporation becomes a
Subsidiary, or if a Subsidiary is created, the Subsidiary in either case shall
automatically become an Employer and its Employees shall become eligible to
participate in the Plan on the first Commencement Date after the acquisition or
creation of the Subsidiary, as the case may be.  Notwithstanding the
foregoing, the Board of Directors may by appropriate resolutions (i) provide
that the acquired or newly created Subsidiary shall not be a participating
Employer, (ii) specify that the acquired or newly created Subsidiary will become
a participating Employer on a Commencement Date other than the first
Commencement Date after the acquisition or creation, or (iii) attach any
condition whatsoever to eligibility of the employees of the acquired or newly
created Subsidiary, except to the extent such condition would not comply with
Section 423 of the Code.

    

    ARTICLE
V.

    CONTRIBUTION
ACCOUNT

    

    5.1           EMPLOYEE
CONTRIBUTIONS.  The enrollment form signed by each Participant
shall authorize the Employer to deduct from the Participant’s compensation an
after-tax amount during each payroll period not less than ten dollars
($10.00) nor more
than an amount which is fifteen percent (15%) of the Participant’s base pay on
the Commencement Date.  A Participant’s base pay shall be determined
before subtracting any elective deferrals to a qualified plan under Section
401(k) of the Code, salary reduction contributions to a cafeteria plan under
Section 125 of the Code or elective deferrals to a nonqualified deferred
compensation plan.  The dollar amount deducted each payday shall be
credited to the Participant’s Contribution Account.  Participant
contributions will not be permitted to commence at any time during the Option
Period other than on the Commencement Date. Unless otherwise determined by the
Plan Administrator with respect to an Option Period, no interest will accrue on
any contributions or on the balance in a Participant’s Contribution
Account.

    

    5.2           MODIFICATION OF CONTRIBUTION
RATE.  No change shall be permitted in a Participant’s amount
of withholding except upon a Commencement Date, and then only if the Participant
files a new enrollment form with the Employer at least fifteen (15) days in
advance of the Commencement Date designating the desired withholding
rate.  Notwithstanding the foregoing, a Participant may notify the
Employer at any time (except during the periods from March 22 through March 31,
June 21 through June 30, September 21 through September 30

    

    
      
        
           

        

        
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    and
December 22 through December 31) that he wishes to discontinue his
contributions.  This notice shall be in writing and on such forms as
provided by the Employer and shall become effective as of a date provided on the
form not more than fifteen (15) days following its receipt by the
Employer.  The Participant shall become eligible to recommence
contributions on the next Commencement Date.

    

    5.3           WITHDRAWAL OF
CONTRIBUTIONS.  A Participant may elect to withdraw the balance
of his Contribution Account at any time during the Option Period prior to the
Exercise Date (except during the periods from March 22 through March 31, June 21
through June 30, September 21 through September 30 and December 22 through
December 31).  The option granted to a Participant shall be canceled
upon his withdrawal of the balance in his Contribution Account.  This
election to withdraw must be in writing on such forms as may be provided by the
Employer.  If contributions are withdrawn in this manner, further
contributions during that Option Period will be discontinued in the same manner
as provided in Section 5.2, and the Participant shall become eligible to
recommence contributions on the next Commencement Date.

    

    5.4           LIMITATIONS ON
CONTRIBUTIONS.  During each Option Period, the total
contributions by a Participant to his Contribution Account shall not exceed
fifteen percent (15%) of the Participant’s base pay for the Option
Period.  If a Participant’s total contributions should exceed this
limit, the excess shall be returned to the Participant after the end of the
Option Period, without interest.

    

    ARTICLE
VI.

    ISSUANCE
AND EXERCISE OF OPTIONS

    

    6.1           RESERVED SHARES OF
STOCK.  The Company shall initially reserve one million
(1,000,000) shares of Stock for issuance upon exercise of the options granted
under this Plan.  The number of shares of Stock reserved for issuance
under this Plan shall automatically increase by two hundred thousand (200,000)
shares the first day of each calendar year beginning January 1,
2010.

    

    6.2           ISSUANCE OF
OPTIONS.  On the Grant Date each Participant shall be deemed to
receive an option to purchase Stock with the number of shares and Exercise Price
determined as provided in this Article VI, subject to the maximum limits
specified in Section 6.6(a).  All such options shall be automatically
exercised on the following Exercise Date, except for options which are canceled
when a Participant withdraws the balance of his Contribution Account or which
are otherwise terminated under the provisions of this Plan.

    

    6.3           DETERMINATION OF EXERCISE
PRICE.  The Exercise Price of the options granted under this
Plan for any Option Period shall be ninety percent (90%) of the Closing Market
Price of the Stock on the Exercise Date.

    

    6.4           PURCHASE OF
STOCK.  On an Exercise Date, all options shall be automatically
exercised, except that the options of a Participant who has terminated
employment pursuant to Section 7.1 or who has withdrawn all his contributions
shall expire.  The Contribution Account of each Participant shall be
used to purchase the maximum number of whole shares of Stock determined by
dividing the Exercise Price into the balance of the Participant’s Contribution
Account.  Any money remaining in a Participant’s Contribution Account
representing a fractional share shall remain in his Contribution Account to be
used in the next Option Period along with new contributions in the next Option
Period; provided, however, that if the Participant does not enroll for the next
Option Period, the balance remaining shall be returned to him in cash, without
interest.

    

    6.5           TERMS OF
OPTIONS.  Options granted under this Plan shall be subject to
such amendment or modification as the Employer shall deem necessary to comply
with any applicable law or regulation, including but not limited to Section 423
of the Code, and shall contain such other provisions as the Employer shall from
time to time approve and deem necessary; provided, however, that any such
provisions shall comply with Section 423 of the Code.

    

    6.6           LIMITATIONS ON
OPTIONS.  The options granted hereunder are subject to the
following limitations:

    

    
      
        
           

        

        
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(a)           The maximum
number of shares of Stock which may be purchased by any Participant on an
Exercise Date shall be two hundred (200) shares.  This maximum number
of shares shall be adjusted as determined by the Plan Administrator in
accordance with, and upon the occurrence of an event described in, Section
10.3.

    

      (b)           No
Participant shall be permitted to accrue the right to purchase during any
calendar year Stock under this Plan (or any other Plan of the Employer or a
Subsidiary which is qualified under Section 423 of the Code) having a market
value of greater than twenty-five thousand dollars ($25,000.00) (as determined
on the Grant Date for the Option Period during which each such share of Stock is
purchased) as provided in Section 423(b)(8) of the Code.

    

      (c)           No
option may be granted to a Participant if the Participant immediately after the
option is granted would be a Five-Percent Stockholder.

    

      (d)           No
Participant may assign, transfer or otherwise alienate any options granted to
him under this Plan, otherwise than by will or the laws of descent and
distribution, and such options must be exercised during the Participant’s
lifetime only by him.

    

    6.7           PRO-RATA REDUCTION OF OPTIONED
STOCK.  If the total number of shares of Stock to be purchased
under option by all Participants on an Exercise Date exceeds the number of
shares of Stock remaining authorized for issuance under Section 6.1, a pro-rata
allocation of the shares of Stock available for issuance will be made among
Participants in proportion to their respective Contribution Account balances on
the Exercise Date, and any money remaining in the Contribution Accounts shall be
returned to the Participants, without interest.

    

    6.8          
APPLICABLE SECURITIES
LAWS.  Notwithstanding anything to the contrary contained
herein, the Company shall not be obligated to issue shares of Stock to any
Participant if to do so would violate any State (or other applicable) securities
law applicable to the sale of Stock to such Participant.  In the event
that the Company refrains from issuing shares of Stock to any Participant in
reliance on this Section, the Company shall return to such Participant the
amount in such Participant’s Contribution Account that would otherwise have been
applied to the purchase of Stock.

    

    ARTICLE
VII.

    TERMINATION
OF PARTICIPATION

    

    7.1           TERMINATION OF
EMPLOYMENT.  Any Employee whose employment with the Employer is
terminated during the Option Period prior to the Exercise Date for any reason
except death, disability or retirement at or after age 65 shall cease being a
Participant immediately.  The balance of that Participant’s
Contribution Account shall be paid to such Participant as soon as practical
after his termination.  The option granted to such Participant shall
be null and void.

    

    7.2           DEATH.  If a
Participant should die while employed by the Employer, no further contributions
on behalf of the deceased Participant shall be made.  The legal
representative of the deceased Participant may elect to withdraw the balance in
said Participant’s Contribution Account by notifying the Employer in writing
prior to the Exercise Date in the Option Period during which the Participant
died (except during the periods from March 22 through March 31, June 21 through
June 30, September 21 through September 30 and December 22 through December
31).  In the event no election to withdraw is made on or before the
March 21, June 20, September 20 or December 21 preceding the Exercise Date, the
balance accumulated in the deceased Participant’s Contribution Account shall be
used to purchase shares of Stock in accordance with Section 6.4.  Any
money remaining which is insufficient to purchase a whole share shall be paid to
the legal representative.

    

    7.3           RETIREMENT.  If a
Participant should retire from the employment of the Employer at or after
attaining age 65, no further contributions on behalf of the retired Participant
shall be made.  The Participant may elect to withdraw the balance in
his Contribution Account by notifying the Employer in writing prior to the
Exercise Date in the Option Period during which the Participant retired (except
during the periods from March 22 through March 31, June 21 through June 30,
September 21 through September 30 and December 22 through December
31).  In the event no election to withdraw is made on or before the
March 21, June 20, September 20 or December 21

    

    
      
        
           

        

        
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    preceding
the Exercise Date, the balance accumulated in the retired Participant’s
Contribution Account shall be used to purchase shares of Stock in accordance
with Section 6.4.  Any money remaining which is insufficient to
purchase a whole share shall be paid to the retired Participant.

    

    7.4           DISABILITY.  If a
Participant should terminate employment with the Employer on account of
disability, as determined by reference to the definition of “disability” in the
Employer’s long-term disability plan, no further contributions on behalf of the
disabled Participant shall be made.  The Participant may elect to
withdraw the balance in his Contribution Account by notifying the Employer in
writing prior to the Exercise Date in the Option Period during which the
Participant became disabled (except during the periods from March 22 through
March 31, June 21 through June 30, September 21 through September 30 and
December 22 through December 31).  In the event no election to
withdraw is made on or before the March 21, June 20, September 20 or December 21
preceding the Exercise Date, the balance accumulated in the disabled
Participant’s Contribution Account shall be used to purchase shares of Stock in
accordance with Section 6.4.  Any money remaining which is
insufficient to purchase a whole share shall be paid to the disabled
Participant.

    

    ARTICLE
VIII.

    OWNERSHIP
OF STOCK

    

    8.1           ISSUANCE OF
STOCK.  As soon as practical after the Exercise Date, the Plan
Administrator will, in its sole discretion, either credit a share account
maintained for the benefit of each Participant or issue certificates to each
Participant for the number of shares of Stock purchased under the Plan by such
Participant during an Option Period. Such determination by the Plan
Administrator shall apply equally to all shares of Stock purchased during the
Option Period.  Certificates may be issued, at the request of a
Participant, in the name of the Participant, jointly in the name of the
Participant and a member of the Participant’s family, to the Participant as
custodian for the Participant’s child under the Gift to Minors Act, or to the
legal representative of a deceased Participant.

    

    8.2           PREMATURE SALE OF
STOCK.  If a Participant (or former Participant) sells or
otherwise disposes of any shares of Stock obtained under this Plan:

    

     
(i)           prior to
two (2) years after the Grant Date of the option under which such shares were
obtained, or

    

     
(ii)           prior to
one (1) year after the Exercise Date on which such shares were
obtained,

    

    that
Participant (or former Participant) must notify the Employer immediately in
writing concerning such disposition.

    

    8.3           TRANSFER OF
OWNERSHIP.  A Participant who purchases shares of Stock under
this Plan shall be transferred at such time substantially all of the rights of
ownership of such shares of Stock in accordance with the Treasury Regulations
promulgated under Section 423 of the Code as in effect on the Effective Date.
Such rights of ownership shall include the right to vote, the right to receive
declared dividends, the right to share in the assets of the Employer in the
event of liquidation, the right to inspect the Employer’s books and the right to
pledge or sell such Stock subject to the restrictions in the Plan.

    

    ARTICLE
IX.

    ADMINISTRATION
AND AMENDMENT

    

    9.1           ADMINISTRATION.  The
Plan Administrator shall (i) administer the Plan, (ii) keep records of the
Contribution Account balance of each Participant, (iii) keep records of the
share account balance of each Participant, (iv) interpret the Plan, and (v)
determine all questions arising as to eligibility to participate, amount of
contributions permitted, determination of the Exercise Price, and all other
matters of administration.  The Plan Administrator shall have such
duties, powers and discretionary authority as may be necessary to discharge the
foregoing duties, and may delegate any or all of the foregoing duties to any
individual or individuals (including officers or other Employees who are
Participants).  The Board of Directors shall have the right at any
time and without notice to remove or replace any individual or committee of
individuals serving as Plan Administrator. All

    

    
      
        
           

        

        
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    determinations
by the Plan Administrator shall be conclusive and binding on all persons. Any
rules, regulations, or procedures that may be necessary for the proper
administration or functioning of this Plan that are not covered in this Plan
document shall be promulgated and adopted by the Plan
Administrator.

    

    9.2           AMENDMENT.  The
Board of Directors of the Employer may at any time amend the Plan in any
respect, including termination of the Plan, without notice to
Participants.  If the Plan is terminated, all options outstanding at
the time of termination shall become null and void and the balance in each
Participant’s Contribution Account shall be paid to that Participant, without
interest.  Notwithstanding the foregoing, no amendment of the Plan as
described in Section 3.2 shall become effective until and unless such amendment
is approved by the stockholders of the Company in accordance with the approval
requirements of Section 3.2.

    

    ARTICLE
X.

    MISCELLANEOUS

    

    10.1           EXPENSES.  The
Employer will pay all expenses of administering this Plan that may arise in
connection with the Plan.

    

    10.2           NO CONTRACT OF
EMPLOYMENT.  Nothing in this Plan shall be construed to
constitute a contract of employment between an Employer and any Employee or to
be an inducement for the employment of any Employee.  Nothing
contained in this Plan shall be deemed to give any Employee the right to be
retained in the service of an Employer or to interfere with the right of an
Employer to discharge any Employee at any time, with or without cause,
regardless of the effect which such discharge may have upon him as a Participant
of the Plan.

    

    10.3           ADJUSTMENT UPON CHANGES IN
STOCK.  The aggregate number of shares of Stock reserved for
purchase under the Plan as provided in Section 6.1, and the calculation of the
Exercise Price as provided in Section 6.3, shall be adjusted by the Plan
Administrator (subject to direction by the Board of Directors) in an equitable
and proportionate manner to reflect changes in the capitalization of the
Company, including, but not limited to, such changes as result from merger,
consolidation, reorganization, recapitalization, stock dividend, dividend in
property other than cash, stock split, combination of shares, exchange of shares
and change in corporate structure.  If any adjustment under this
Section 10.3 would create a fractional share of Stock or a right to acquire a
fractional share of Stock, such fractional share shall be disregarded and the
number of shares available under the Plan and the number of shares covered under
any options granted pursuant to the Plan shall be the next lower number of
shares, rounding all fractions downward.

    

    10.4           EMPLOYER’S
RIGHTS.  The rights and powers of any Employer shall not be
affected in any way by its participation in this Plan, including but not limited
to the right or power of any Employer to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge or
to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets.

    

    10.5           LIMIT ON
LIABILITY.  No liability whatever shall attach to or be
incurred by any past, present or future stockholders, officers or directors, as
such, of the Company or any Employer, under or by reason of any of the terms,
conditions or agreements contained in this Plan or implied therefrom, and any
and all liabilities of any and all rights and claims against the Company, an
Employer, or any stockholder, officer or director as such, whether arising at
common law or in equity or created by statute or constitution or otherwise,
pertaining to this Plan, are hereby expressly waived and released by every
Participant as a part of the consideration for any benefits under this Plan;
provided, however, no waiver shall occur, solely by reason of this Section 10.5,
of any right which is not susceptible to advance waiver under applicable
law.

    

    10.6           GENDER AND
NUMBER.  For the purposes of the Plan, unless the contrary is
clearly indicated, the use of the masculine gender shall include the feminine,
and the singular number shall include the plural and vice versa.

    

    10.7           GOVERNING LAW.  The
validity, construction, interpretation, administration and effect of this Plan,
and any rules or regulations promulgated hereunder, including all rights or
privileges of any Participants hereunder, shall be governed exclusively by and
in accordance with the laws of the State of Delaware, except that

    

    
      
        
           

        

        
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    the Plan
shall be construed to the maximum extent possible to comply with Section 423 of
the Code and the Treasury Regulations promulgated thereunder.

    

    10.8           HEADINGS.  Any
headings or subheadings in this Plan are inserted for convenience of reference
only and are to be ignored in the construction of any provisions
hereof.

    

    10.9           SEVERABILITY.  If
any provision of this Plan is held by a court to be unenforceable or is deemed
invalid for any reason, then such provision shall be deemed inapplicable and
omitted, but all other provisions of this Plan shall be deemed valid and
enforceable to the full extent possible under applicable law.

    

    IN WITNESS WHEREOF, the
Employer has adopted this Plan as of the 21st day of
April, 2008, to be effective as of the Effective Date (subject to approval by
the Company’s stockholders at the 2008 Annual Meeting of
Stockholders).

    

    
      	 
      	 
      	
              BROOKDALE
      SENIOR LIVING INC.

            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              By:

            	
              
                  /s/
      W.E. Sheriff

              

            	 
      
	 
      	 
      	
              Name:

            	
              W.E.
      Sheriff

            	 
      
	 
      	 
      	
              Title:

            	
              Chief
      Executive Officer

            	 
      

    

     

    

      
        	
                ATTEST:

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                /s/
      T. Andrew Smith

              	 
      	 
      
	
                T.
      Andrew Smith, Secretary

              	 
      	 
      

      

    
 

    

    

    8exv10w1wa

Exhibit 10.1(a)

EMPLOYMENT AGREEMENT

THIS AGREEMENT made as of this 28th day of June 2006, by and between THE BON-TON STORES, INC.,
a Pennsylvania corporation (the “Company”), and Stephen Byers (“Employee”).

W I T N E S S E T H:

WHEREAS, the Company has offered Employee continued employment and Employee has accepted the
Company’s offer commencing on the Effective Date (as hereinafter defined).

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein and
intending to be legally bound hereby, the Company and Employee agree as follows:

1. Position and Responsibilities.

(a) The Company hereby employs Employee and Employee hereby accepts employment by the Company
as the Company’s Executive Vice President, CPS Stores. Employee shall have responsibilities for
the Company’s CPS Stores and Visual matters and/or such other responsibilities commensurate with
those of Executive Vice President, CPS Stores, and shall report either to the President and Chief
Executive Officer of the Company or such other direct report as the President and Chief Executive
Officer may designate.

(b) Throughout the term of this Agreement, Employee shall devote his entire working time,
energy, attention, skill and best efforts to the affairs of the Company and to the performance of
his duties hereunder in a manner that will faithfully and diligently further the business and
interests of the Company. Employee may not, directly or indirectly, do any work for or on behalf
of a competitor or any other company while employed by the Company.

 

 

 

However, nothing herein
contained shall be deemed to prevent or limit the right of Employee to invest any of his personal
funds in less than one percent of any class or series of the equity
securities of any entity provided such equity securities are traded on a national securities
exchange or quoted in an automated inter-dealer quotation system, nor shall this clause be
construed as preventing Employee from investing his assets in such other form or manner as will not
require any services on the part of the Employee in, and will not permit the control by the
Employee of any aspect of, the operation or the affairs of entities (or affiliates of such
entities) in which such investments are made. Approval of board memberships and participation in
lectures and teaching activities will be at the discretion of the Chief Executive Officer; however,
such approval will not be unreasonably withheld, provided that such activities do not significantly
interfere with Employee’s duties under this Agreement.

(c) Employee shall not obtain goods or services or otherwise deal on behalf of the Company
with any business or entity in which Employee or a member of his immediate family has a financial
interest or from which Employee or a member of his immediate family may derive a financial benefit
as a result of such transaction, except that this prohibition shall not apply to any entity whose
equity securities are traded on a national securities exchange or quoted in an automated
inter-dealer quotation system provided that neither Employee nor any member of his immediate family
owns one percent or more of any class or series of the outstanding capital stock or other
securities of such entity.

2. Term of Agreement. Employee’s employment hereunder, shall commence immediately
upon execution by both the Company and Employee (“Effective Date”), and shall continue through and
terminate on January 31, 2009, unless sooner terminated in accordance with Paragraph 8 below.

3. Place of Performance. Employee shall be based at the office of the Company in
Milwaukee, Wisconsin, except for travel required for Company business.

 

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4. Compensation.

(a) Salary. Employee shall receive a Base Salary (“Base Salary”) at the annual rate
of $425,000. This Base Salary, less taxes and normal deductions, shall be paid to Employee in
substantially equal installments in accordance with the Company’s regular executive payroll
practices in effect from time to time. The Base Salary and Employee’s performance may be reviewed
from time to time during the term of this Agreement by the Company to ascertain whether, in the
Company’s sole discretion, such Base Salary should be increased, and once increased, such Base
Salary shall not be decreased. The first such salary and performance review shall occur in 2007.

(b) Annual Bonus. Employee will participate in The Bon-Ton Stores, Inc. Cash Bonus
Plan (“Cash Bonus Plan”) in accordance with its terms and conditions as it may be amended in
accordance with its provisions or such other annual bonus plan as may be established by the
Company. For each of the fiscal years of the Company during the Term, Employee shall be eligible
to earn a bonus, with the following parameters: a threshold bonus of 33.75% of Employee’s Base
Salary; a target bonus of 45% of Employee’s Base Salary; and a maximum bonus of 67.5% of Employee’s
Base Salary. If earned, one bonus will be paid depending on the level of achievement with respect
to performance measures determined for each of the Company’s fiscal years by the Human Resources
and Compensation Committee (“HRCC”) of the Company’s Board of Directors. The HRCC shall retain
discretion with respect to this bonus as is provided under the terms of the Cash Bonus Plan. To
the extent reasonably practicable, the annual bonus shall be computed within 90 days following the
close of the Company’s fiscal year and paid within 30 days of its computation. Employee must be
employed on the last day of the Company’s fiscal year to receive a bonus.

 

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(c) Stock Options. The Company agrees that it has already provided an option or
options to purchase shares of the Company’s common stock to the Employee, which options remain in
effect without change. The Employee may receive one or more options in the future at the
discretion of the Company.

(d) Allowances. The Company shall provide Employee with $6,200 per year, payable
monthly or in accordance with Company’s current payroll practices as may be modified from time to
time, as an automobile allowance. The Company shall reimburse Employee on a one-time basis for up
to $2,000 in attorney’s fees incurred for the review and negotiation of this Agreement.

5. Medical Insurance. Employee and his eligible dependents shall be eligible to
participate in the Company’s group medical, dental and vision plans in accordance with the terms of
such plans and, subject to the restrictions and limitations contained in the applicable insurance
agreement or agreements. The Company shall pay Employee up to $2,300 per year for medical expenses
that are not covered by the Company’s medical plan.

6. Other Benefits. Employee shall be eligible to participate in The Bon-Ton
Retirement Contribution Plan, deferred compensation plan, discount program, vacation plan,
long-term disability plan and employee benefit programs generally made available to other similarly
situated employees of the Company who were previously employed in the Northern Department Store
Group, including the Carson Pirie Scott division (“Northern Department Store Group”) of Saks
Incorporated (“Saks”), subject to their respective generally applicable eligibility requirements,
terms, conditions and restrictions; provided however, that severance benefits under this Agreement
shall be in lieu of any severance benefits otherwise provided by the Company.

 

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Nothing in this
Agreement shall preclude the Company from amending or terminating any such
insurance, benefit, program or plan so long as the amendment or termination is applicable
generally to the Company’s executives participating in such insurance, benefit, program or plan.
Moreover, the Company’s obligations under this provision shall not apply to any insurance, benefit,
program or plan made available on an individual basis to one or more select executive employees by
contract if such insurance, benefit, program or plan is not made available to all executive
employees. With respect to Employee’s participation in the Company’s vacation plan, Employee shall
be eligible for 3 weeks vacation and 2 personal days per calendar year, which vacation entitlement
shall be pro-rated in any calendar year in which the Employee does not work the entire calendar
year.

7. Business Expenses. The Company shall pay or reimburse Employee for reasonable
entertainment and other expenses incurred by Employee in connection with the performance of
Employee’s duties under this Agreement upon receipt of vouchers therefore and in accordance with
the Company’s regular reimbursement procedures and practices in effect from time to time.

8. Termination of Employment.

(a) Termination by the Company. Notwithstanding any other provision of this
Agreement, the Company may terminate Employee’s employment and all of the Company’s obligations or
liabilities under this Agreement immediately, excluding any obligations the Company may have under
Paragraph 9 below, in any of the following circumstances:

(i) Disability or Incapacity. In the event of Employee’s physical or mental inability
to perform his essential duties hereunder, with or without reasonable accommodation, for a period
of 13 consecutive weeks or for a cumulative period of 26 weeks during the term of this Agreement.

(ii) Death of Employee. In the event of Employee’s death.

 

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(iii) Discharge for Cause. Company may discharge Employee at any time for “Cause,”
which shall be limited to: Employee’s material and serious breach or neglect of Employee’s
responsibilities; willful violation or disregard of standards of conduct established by law;
willful violation or disregard of standards of conduct established by Company policy as may from
time to time be communicated to Employee; fraud, willful misconduct, misappropriation of funds or
other dishonesty; conviction of a crime of moral turpitude; any misrepresentation made by Employee
in this Agreement; or any material breach by Employee of any provision of this Agreement
(including, without limitation, acceptance of employment with another company or performing work or
providing advice to another company, as an employee, consultant or in any other similar capacity
while still an employee of the Company).

(iv) Discharge without Cause. Notwithstanding any other provision of this Agreement,
Employee’s employment and any and all of the Company’s obligations under this Agreement (excluding
any obligations the Company may have under Paragraph 9 below) may be terminated by the Company at
any time without Cause.

(b) Resignation.

(i) Resignation for Good Reason. Employee may resign for “Good Reason,” defined
below, upon 30 days’ written notice by Employee to the Company except as set forth in Paragraph
8(c) below. The Company may waive Employee’s obligation to work during this 30 day notice period
and terminate his employment immediately, but if the Company takes this action in the absence of
agreement by Employee, Employee shall receive the salary that otherwise would be due through the
end of the notice period. For purposes of this Agreement, “Good Reason” shall mean any of the
following violations of this Agreement by the Company: causing Employee, without Employee’s
consent to cease to have duties and responsibilities
commensurate with those of Executive Vice President, CPS Stores; any reduction in the
Employee’s Base Salary;

 

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any reduction in the Employee’s potential bonus eligibility amount; any
required relocation from the Milwaukee, Wisconsin area; and any substantial breach of any material
provision of this Agreement. Notwithstanding the foregoing, the acts or omissions described above
shall not constitute “Good Reason” unless the Employee provides the Company with written notice
detailing the matters he asserts to be “Good Reason” that the Company does not cure within thirty
(30) days of receiving the written notice.

(ii) Resignation Without Good Reason. Notwithstanding any other provision of this
Agreement, Employee’s employment and any and all of the Company’s obligations under this Agreement
(excluding any obligations the Company may have under Paragraph 9 below) may be terminated by
Employee without Good Reason.

(c) Change of Control. In the event of a Change of Control of the Company, the
Employee shall be prohibited from resigning for Good Reason for a period of six months following
the Change of Control (unless Employee is required during this six (6) month period to relocate
from the Milwaukee, Wisconsin area). For purposes of this Agreement, a Change of Control shall be
deemed to occur if:

(i) any “person,” as such term is defined under Sections 3(a)(9) and 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), who is not an affiliate of Company on the
date hereof, becomes a “beneficial owner,” as such term is used in Rule 13d-3 under the Exchange
Act, of a majority of the outstanding voting power of the Company’s capital stock;

(ii) the Company adopts any plan of liquidation providing for the distribution of all or
substantially all of its assets;

 

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(iii) the Company is party to a merger, consolidation, other form of business combination or a
sale of all or substantially all of its assets, unless the business of the Company is continued
following any such transaction by a resulting entity (which may be, but need not be, the Company)
and the shareholders of the Company immediately prior to such transaction hold, directly or
indirectly immediately after such transaction, a majority of the voting power of the resulting
entity in substantially the same relative percentages as prior to such transaction.

9. Payments Upon Termination.

(a) Discharge Without Cause, or Resignation for Good Reason. If Employee is
Discharged Without Cause or Resigns for Good Reason, Employee shall receive severance pay at his
then current rate of Base Salary as of his termination, less taxes and normal deductions:

(i) if Employee is Discharged Without Cause, or Resigns for Good Reason, on or before March 4,
2008: seventy-eight (78) weeks in accordance with the Saks Incorporated Amended and Restated 2000
Change of Control and Material Transaction Severance Plan; or

(ii) if Employee is Discharged Without Cause, or Resigns for Good Reason, on or after March 5,
2008: fifty-two (52) weeks;
payable in equal installments in accordance with the Company’s regular payroll practices, provided
(whether the Discharge Without Cause or Resignation for Good Reason occurs before, on or after
March 4, 2008) that Employee signs and does not timely revoke a general release of claims
(including, without limitation, contractual, common law and statutory claims) against the Company
and its officers, directors, employees and agents in a form acceptable to the Company.

 

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These
severance payments shall be in lieu of any bonus or other Company paid benefits to which
Employee is or may be entitled after Employee’s termination of employment with the Company for any
reason whatsoever, whether by Employee or the Company, including any other severance payments to
which Employee is or may be entitled by reason of any severance plan sponsored by Saks or the
Company, or any other agreement, policy or practice. Employee will also have the opportunity for
continued participation in the Company’s group medical plans, at his expense, pursuant to COBRA.
The Company’s obligations under this Paragraph 9(a) shall, as applicable:

(iii) cease in the event that Employee breaches any of Employee’s obligations under this
Agreement; and/or

(iv) be offset by any disability insurance benefits and/or workers compensation benefits
received by Employee during the period covered by the severance payments.

(b) Death or Disability/Incapacity.

(i) On death, Employee’s estate’s sole entitlement will be to his then current rate of Base
Salary for any days worked prior to his death, amounts payable on account of Employee’s death under
any insurance or benefit plans or policies maintained by the Company, and any vested benefits to
which Employee is entitled under the Company’s employee benefit or other plans in accordance with,
to the extent provided in, and subject to the restrictions and payout schedules contained in those
plans.

(ii) On termination for disability or incapacity, Employee’s sole entitlement will be to his
then current rate of Base Salary for any days worked prior to the date of termination, amounts
payable on account of disability or incapacity under any insurance or benefit plans or policies
maintained by the Company and any vested benefits to which Employee
is entitled under the Company’s employee benefit or other plans in accordance with, to the
extent provided in, and subject to the restrictions and payout schedules contained in those plans.

 

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(c) Discharge for Cause or Resignation without Good Reason. If Employee is discharged
for Cause or resigns without Good Reason, Employee’s sole entitlement will be the receipt of his
then current rate of Base Salary for any days worked through the date of termination and any vested
benefits to which Employee is entitled under the Company’s employee benefit or other plans in
accordance with, to the extent provided in, and subject to the restrictions and payout schedules
contained in those plans.

(d) Change of Control. Notwithstanding any other provision of this Agreement, if the
aggregate present value of the “parachute payments” to the Employee, determined under Section
280G(b) of the Internal Revenue Code of 1986, as amended (the “Code”), would be at least three
times the “base amount” determined under Code Section 280G, then the “280G Permitted Payment” shall
be the maximum amount that may be paid as a Change of Control Payment under this Paragraph 9(d)
such that the aggregate present value of such “parachute payments” to the Employee is less than
three times his “base amount.” In addition, in the event the aggregate present value of the
parachute payments to the Employee would be at least three times his base amount even after a
reduction of the Change of Control Payment to $0 (all as determined for purposes of Code Section
280G), compensation otherwise payable under this Agreement and any other amount payable hereunder
or any other severance plan, program, policy or obligation of the Company or any other affiliate
thereof shall be reduced so that the aggregate present value of such parachute payments to the
Employee, as determined under Code Section 280G(b) is less than three times his base amount. Any
decisions regarding the
requirement or implementation of such reductions shall be made by such tax counsel as may be
selected by the Company and reasonably acceptable to the Employee.

 

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10. Company Property. All advertising, sales, manufacturers’ and other materials or
articles or information, including, without limitation, data processing reports, customer sales
analyses, invoices, price lists or information or any other materials or data of any kind furnished
to Employee by the Company or developed by Employee on behalf of the Company or at the Company’s
direction or for the Company’s use or otherwise in connection with Employee’s employment with the
Company, are and shall remain the sole and confidential property of the Company.

11. Non-Competition and Confidentiality. To the maximum extent permissible by law:

(a) During his employment with the Company and for a period of one year after the termination
of his employment with the Company for any reason whatsoever, whether by Employee or by the Company
and whether during the term of this Agreement or subsequent to the expiration or termination of
this Agreement, Employee shall not, directly or indirectly:

(i) Induce or intentionally influence any customer, employee, consultant, independent
contractor or supplier of the Company to change its business relationship with or terminate
employment with the Company.

(ii) Engage in (as a principal, partner, director, officer, agent, employee, consultant,
owner, independent contractor or otherwise) or be financially interested in the retail department
store business of any Competitor of the Company. For purposes of this Agreement, a Competitor
means each of Federated Department Stores, Dillard’s Inc., Kohl’s
Corporation, Belk, Inc., Limited Brands, Inc., Target Corporation, Boscov’s, Inc., Sears
Holdings Corporation, J. C. Penney Company, Inc. or the affiliates and successors of each of them.

 

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(b) During his employment with the Company and at all times thereafter, and except as required
by law, Employee shall not use for his personal benefit, or disclose, communicate or divulge to, or
use for the direct or indirect benefit of, any person, firm, association or company other than the
Company, any Confidential Information (defined below) of the Company that Employee acquires in the
course of his employment, unless such Confidential Information is lawfully known by and readily
available to the general public, was received from a third party who was not under any restriction
to disclose such information, or is independently developed without the use of the Company’s
Confidential Information. This Confidential Information includes, but is not limited to: any
material referred to in Paragraph 10 or any non-public information regarding the business,
marketing, legal or accounting methods, policies, plans, procedures, strategies or techniques;
research or development projects or results; trade secrets or other knowledge or processes of or
developed by the Company; names and addresses of employees, suppliers or customers (“Confidential
Information”). Employee confirms that such information is confidential and constitutes the
exclusive property of the Company, and agrees that, immediately upon his termination, whether by
Employee or by the Company and whether during the term of this Agreement or subsequent to the
expiration of this Agreement, Employee shall deliver to Company all correspondence, documents,
books, records, lists, computer programs and other writings relating to Company’s business; and
Employee shall retain no copies, regardless of where or by whom said writings were kept or
prepared. Confidential Information includes such information of the Northern Department Store
Group that relates to business assets that were acquired by the Company from Saks.

 

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(c) Both during his employment with the Company and following his termination for any reason,
whether by Employee or by the Company and whether during the term of this Agreement or following
the expiration of the Agreement, Employee shall, upon reasonable notice, furnish to the Company
such information pertaining to his employment with the Company as may be in his possession. The
Company shall reimburse Employee for all reasonable expenses incurred by him in fulfilling his
obligations under this subparagraph (c).

(d) The provisions of subparagraphs (a), (b) and (c) shall survive the cessation of Employee’s
employment for any reason, as well as the expiration of this Agreement at the end of its term or at
any time prior thereto.

(e) Employee acknowledges that the restrictions contained in this Paragraph 11, in view of the
nature of the business in which the Company is engaged and the Employee’s position with the
Company, are reasonable and necessary to protect the legitimate interests of the Company, and that
any violation of those restrictions would result in irreparable injury to the Company. Employee
therefore agrees that, in the event of his violation of any of those restrictions, the Company
shall be entitled to obtain from any court of competent jurisdiction preliminary and permanent
injunctive relief against Employee, in addition to damages from Employee and an equitable
accounting of all commissions, earnings, profits and other benefits arising from such violation,
which rights shall be cumulative and in addition to any other rights or remedies to which the
Company may be entitled.

 

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(f) Employee agrees that if any or any portion of the foregoing covenants, or the application
thereof, is construed to be invalid or unenforceable, the remainder of such covenant or covenants
or the application thereof shall not be affected and the remaining covenant or covenants will then
be given full force and effect without regard to the invalid or
unenforceable portions. If any covenant is held to be unenforceable because of the area
covered, the duration thereof, or the scope thereof, Employee agrees that the Court making such
determination shall have the power to reduce the area and/or the duration, and/or limit the scope
thereof, and the covenant shall then be enforceable in its reduced form. If Employee violates any
of the restrictions contained in subparagraph (a), the period of such violation (from the
commencement of any such violation until such time as such violation shall be cured by Employee to
the satisfaction of the Company) shall not count toward or be included in the one year (or such
longer period as may be prescribed by such section) restrictive period contained in subparagraph
(a).

(g) Employee represents and warrants that the knowledge, skill and abilities he possesses at
the time of his execution of this Agreement are sufficient to permit him to earn a living by
working for a non-competitor of the Company for the restrictive period set forth in subparagraph
(a) above.

(h) For purposes of Paragraphs 10 and 11 of this Agreement, the term “Company” shall include
not only The Bon-Ton Stores, Inc., but also any of its successors, assigns, subsidiaries or
affiliates.

12. Taxes. Employee agrees that he is responsible for paying any and all federal,
state and local income taxes assessed with respect to any money, benefits or other consideration
received from the Company and that the Company is entitled to withhold any tax payments from
amounts otherwise due Employee to the extent required by applicable statutes, rulings or
regulations.

 

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13. Prior Agreements.

(a) Employee represents that there are no restrictions, agreements or understandings
whatsoever to which Employee is a party that could impact upon his employment under the Agreement
or would prevent or make unlawful his execution of this Agreement or his employment hereunder.

(b) Employee agrees that he will not use or disclose any confidential or proprietary
information of any of his prior employers during the course of his employment under this Agreement.
This prohibition does not apply to information of the Northern Department Store Group that relates
to business assets that were acquired by the Company from Saks, which information is subject to the
restrictions of Paragraph 11.

14. Indemnification. Employee shall be entitled to indemnification against claims by
third parties arising out of his acts and omissions within the scope of his employment pursuant to
the terms of the Company’s by-laws.

15. Entire Understanding. This Agreement contains the entire understanding between
the Company and Employee with respect to the subject matter hereof and supersedes all prior and
contemporary employment and severance agreements and understandings, inducements or conditions,
express or implied, written or oral, between the Company and Employee except as herein contained.
The express terms hereof control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof.

16. Modifications. This Agreement may not be modified orally but only by written
agreement signed by Employee and the Company’s Chief Executive Officer or such other person as the
Company’s Board of Directors may designate specifically for this purpose.

 

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17. Provisions Separable. The provisions of this Agreement are independent of and
separable from each other, and no provision shall be affected or rendered invalid or unenforceable
by virtue of the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part.

18. Compliance With Code Section 409A.

(a) Notwithstanding anything to the contrary herein, no payment otherwise required to be made
hereunder that the Company determines constitutes a payment of nonqualified deferred compensation
for purposes of Section 409A of the Code shall be paid to Employee at a time or in a manner that
will be treated as a violation of the distribution rules of Code Section 409A(a)(2) and no
alternative form of payment of such amount(s) shall be permitted to be made hereunder if such
alternative benefit form would violate any of the requirements of Code Section 409A(a)(3) or (4)
relating to acceleration of benefits and changes in time and form of distribution (taking into
account any regulations or other guidance issued by Treasury or the Internal Revenue Service with
regard to these Code provisions as may be in effect from time to time).

(b) The intent of this provision is to ensure that no additional tax liabilities are imposed
on any payments or benefits provided hereunder pursuant to Code Section 409A, and may require, for
example, a delay in commencement of payments until six months after Employee’s termination of
employment with the Company. In the event any payment is delayed by reason of this Paragraph 18,
such payment shall, when made, be increased by an amount representing “interest” from the date
payment would otherwise have been made, through the date payment is actually made, calculated using
the Company’s cost of borrowing as the interest rate, as determined by the Company at its
discretion.

 

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19. Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall preclude
the Company from consolidating or merging into or with, or transferring all or a substantial
portion of its assets to, another entity that assumes this Agreement and all obligations and
undertakings of the Company hereunder. Under such a consolidation, merger or transfer of assets
and assumption, the term “Company” as used herein, shall mean such other entity and this Agreement
shall continue in full force and effect.

20. Notices. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be deemed to have been duly given,
made and received when delivered (personally, by courier service such as Federal Express, or by
messenger) or when deposited in the United States mails, registered or certified mail, postage
pre-paid, return receipt requested, addressed as set forth below:

	 	(a)	 	If to the Company:
	 
	 	 	 	The Bon-Ton Stores, Inc.

2801 East Market Street

York, PA 17402

Attention: Chief Executive Officer
	 
	 	 	 	with a copy to:
	 
	 	 	 	Henry F. Miller, Esquire

Wolf, Block, Schorr and Solis-Cohen LLP

1650 Arch Street

22nd Floor

Philadelphia, PA 19103-2097
	 
	 	(b)	 	If to Employee:
	 
	 	 	 	Stephen Byers

629 Fox Glen Drive

St. Charles, IL 60174

 

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In addition, notice by mail shall be by air mail if posted outside of the continental United
States. Any party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this paragraph for the giving
of notice.

21. No Attachment. Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance,
charge, pledge, or hypothecation or to execution, attachment, levy or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be
null, void and of no effect.

22. Binding Agreement. This Agreement shall be binding upon, and shall inure to the
benefit of the Company and its successors, representatives, and assigns and shall be binding upon
Employee, his heirs, executors and legal representatives.

23. Assignment by Employer. Employee consents to the assignment of this Agreement to
any purchaser of the Company or a substantial portion of its assets.

24. No Assignment by Employee. Employee acknowledges that the services to be rendered
by him are unique and personal. Accordingly, Employee may not assign or delegate any of his rights
or obligations hereunder, except that he may assign certain rights hereunder if agreed to in
writing by the Chief Executive Officer.

25. Indulgences. Neither the failure nor any delay on the part of either party to
exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

 

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26. Paragraph Headings. The paragraph headings in this Agreement are for convenience
only; they form no part of this Agreement and shall not affect its interpretation.

27. Controlling Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement, (including, without limitation, provisions concerning
limitations of actions), shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania, notwithstanding any conflict-of-laws doctrines of such state or any
other jurisdiction to the contrary, and without the aid of any canon, custom or rule of law
requiring construction against the draftsman.

28. Chief Employee Officer. In the absence of the President and Chief Executive
Officer, the decisions of the President and Chief Executive Officer hereunder may be made by such
other person as designated by the Company’s Board of Directors.

29. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when any number of counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties hereto.

 

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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have duly
executed and delivered, in Pennsylvania, this Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 
	THE BON-TON STORES, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ BYRON BERGREN
	 	 
	 	Date: 6/28/06
	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Byron Bergren

Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ STEPHEN BYERS	 	 	 	Date: 6/28/06	 	 
	 	 	 	 	 	 	 
	Stephen Byers	 	 	 	 	 	 

 

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