54-10 Agreement

54-10 AF Draft 2-9-10 PURCHASE AND SALE AGREEMENT between Sunrise West Orange NJ Senior Living, LLC as Seller, and Township of West Orange, New Jersey as Purchaser As of __________, 2010 GENBUS/718957.4

TABLE OF CONTENTS Page I................................................................................................................................ DEFINITIONS. ..............................................................................................................................................1 II................................................................................... SALE AND PURCHASE OF PROPERTY. ..............................................................................................................................................4 2.1 Purchase of Property..............................................................................................4 2.2 Purchase Price and Terms of Payment..................................................................4 2.3 Assumed Liabilities...............................................................................................4 III....................................................................................................................................... ESCROW. ..............................................................................................................................................5 3.1 Escrow...................................................................................................................5 3.2 Deposit of Funds....................................................................................................5 IV........................................................................................................................................... TITLE. ..............................................................................................................................................5 4.1 Title Commitment..................................................................................................5 4.2 Permitted Exceptions.............................................................................................7 4.3 Inspection and

...................5 4.2 Permitted Exceptions.............................................................................................7 4.3 Inspection and Approvals......................................................................................7 4.4 Purchaser’s Right to Terminate...........................................................................10 4.5 Condition of the Property....................................................................................10 V...................................................................................................................................... CLOSING. ............................................................................................................................................14 5.1 Closing Date........................................................................................................14 5.2 Preliminary Closing Statement............................................................................14 5.3 Action Prior to the Closing Date by Seller..........................................................14 5.4 Action Prior to the Closing Date by Purchaser....................................................15 5.5 Recording of Deed...............................................................................................15 5.6 Prorations.............................................................................................................15 5.7 Closing Costs.......................................................................................................17 5.8 Distribution of Funds and Documents Following Closing..................................17 5.9 Possession............................................................................................................18 VI.................................................................................................. ADDITIONAL INDEMNITIES. ............................................................................................................................................18 6.1

DDITIONAL INDEMNITIES. ............................................................................................................................................18 6.1 Purchaser’s Indemnity.........................................................................................18 VII........................................................................... REPRESENTATIONS AND WARRANTIES. ............................................................................................................................................18 7.1 Purchaser’s Representations and Warranties.......................................................18 7.2 Seller’s Representations and Warranties.............................................................19 7.3 Seller’s Knowledge..............................................................................................20 -1- GENBUS/718957.4

TABLE OF CONTENTS (Cont’d) Page VIII.............................................................. CONDITIONS PRECEDENT TO CLOSING. ............................................................................................................................................20 8.1 Conditions to Seller’s Obligations.......................................................................20 8.2 Conditions to Purchaser’s Obligations................................................................21 8.3 Failure of Conditions to Closing..........................................................................21 IX.. REMEDIES FOR PRE-CLOSING AND POST-CLOSING DEFAULTS ; LIQUIDATED DAMAGES . ............................................................................................................................................22 9.1 Default by Purchaser Prior to Closing.................................................................22 9.2 Default by Seller Prior to Closing.......................................................................23 9.3 Survival................................................................................................................24 X..................................................................................................................................... BROKERS. ............................................................................................................................................24 XI..................................................................................................................................... NOTICES. ............................................................................................................................................24 XII................................................................................................................... MISCELLANEOUS.

......................................................24 XII................................................................................................................... MISCELLANEOUS. ............................................................................................................................................25 12.1 Governing Law....................................................................................................25 12.2 Professional Fees and Costs.................................................................................26 12.3 Exhibits and Schedules a Part of This Agreement...............................................26 12.4 Executed Counterparts.........................................................................................26 12.5 Assignment..........................................................................................................26 12.6 IRS - Form 1099-S...............................................................................................27 12.7 Successors and Assigns.......................................................................................27 12.8 Time is of the Essence.........................................................................................27 12.9 Entire Agreement.................................................................................................27 12.10 Further Assurances..............................................................................................27 12.11 Waiver..................................................................................................................27 12.12 Headings..............................................................................................................28 12.13 Risk of Loss.........................................................................................................28 12.14 Construction of Agreement..................................................................................28 12.15 Intentionally Omitted...........................................................................................29 12.16 Bulk

..........................................28 12.15 Intentionally Omitted...........................................................................................29 12.16 Bulk Transfers.....................................................................................................29 12.17 Covenants, Representations and Warranties........................................................29 12.18 Intentionally Omitted...........................................................................................29 12.19 No Third-Party Beneficiaries...............................................................................29 12.20 Facsimile Signatures............................................................................................29 12.21 Severability..........................................................................................................30 12.22 Cumulative Remedies..........................................................................................30 12.23 Consents and Approvals......................................................................................30 12.24 WAIVER OF JURY TRIAL...............................................................................30 12.25 Tax Deferred Exchange.......................................................................................30 -2- GENBUS/718957.4

TABLE OF CONTENTS (Cont’d) Page 12.26 Lending Group Consent and Approval................................................................31 XIII............................................................................................................................. EXECUTION. ..............................................................................................................................................1 SCHEDULE OF EXHIBITS Exhibit “A” Legal Description of Property Exhibit “B” Form of Escrow Agreement for Earnest Money Deposit Exhibit “C” Form of Deed Exhibit “D” Form of Non-Foreign Affidavit Exhibit “E” List of Pending Litigation -3- GENBUS/718957.4

PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is dated as of this ____ day of __________, 2010 (“Effective Date”), and is made by and between Sunrise West Orange NJ Senior Living, LLC, a Delaware limited liability company (“Seller”), and Township of West Orange, New Jersey, a [__________________] (“Purchaser”). RECITALS A. Seller desires to sell certain real property and any improvements located thereon located at 577 Mount Pleasant Avenue in West Orange, New Jersey on the terms and conditions set forth in this Agreement. B. Purchaser desires to purchase such real property and improvements located thereon, from Seller, on the terms and conditions set forth in this Agreement. C. All capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to such terms in Article I. AGREEMENT NOW, THEREFORE, for valuable consideration, including the promises, covenants, representations and warranties hereinafter set forth, the receipt and adequacy of which are hereby acknowledged, the parties, intending to be legally and equitably bound, agree as follows. DEFINITIONS As used in this Agreement, the following terms have the meanings ascribed to them in this Article I: “Affiliate.” With respect to any person or entity, (i) all persons or entities that, directly or indirectly, control, are controlled by, or under common control with, such person or entity; or (ii) all persons or entities that, directly or indirectly, own, are owned by or under common ownership with, such person or entity. “Agreement.” As set forth in the preamble hereof. “Approval Date.” As set forth in Section 4.3 hereof. “Casualty.” As set forth in Section 12.13.1 hereof. “Claims.” Collectively, damages, claims (including without limitation, any claim for damage to property of others or injury to or death of any persons), penalties, obligations, liabilities, fines, losses, causes of action, fees, injuries, liens, encumbrance, proceedings, judgments, actions, rights, demands, costs and expenses (including without limitation, reasonable attorneys’ fees whether or not legal proceedings are instituted and court and litigation costs). GENBUS/718957.4

“Closing.” The sale and assignment of the Property to Purchaser on the Closing Date and the performance by each party of the obligations on its part then to be performed under and in accordance with this Agreement. “Closing Date.” As set forth in Section 5.1 hereof. “Closing Payment.” As set forth in Section 2.2.2 hereof. “Closing Statement.” As set forth in Section 5.2 hereof. “Deed.” As set forth in Section 5.3(a) hereof. “Disbursement Authorization.” As set forth in Section 5.2 hereof. “Due Diligence Materials.” As set forth in Section 4.3.1 hereof. “Due Diligence Period.” As set forth in Section 4.3 hereof. “Earnest Money Deposit.” As set forth in Section 2.2.1 hereof. “Effective Date.” As set forth in the preamble hereof. “Environmental Damages.” As set forth in Section 4.5(g) hereof. “Environmental Requirements.” As set forth in Section 4.5(h) hereof. “Escrow.” As set forth in Section 3.1 hereof. “Escrow Agent.” First American Title Insurance Company’s National Commercial Services office located at 1801 K Street, N.W., Suite 200K, Washington, D.C. 20006, Attention: Mr. Craig Johnson. “Escrow Agreement.” As set forth in Section 3.1 hereof. “EST.” Eastern Standard (or Daylight) Time, the time applicable in the eastern time zone of the United States. “Exchange Documents.” As set forth in Section 12.25 hereof. “Good Funds.” A deposit of cashier’s check, certified funds, or confirmed wire transfer of funds. “Hazardous Materials.” As set forth in Section 4.5(i) hereof. “Improvements.” The buildings, structures, fixtures, and other permanent improvements located on the Land, including, without limitation, electrical distribution systems, HVAC systems, walkways, driveways, parking lots, plumbing, lighting, and mechanical equipment and fixtures installed thereon, and all rights, benefits and privileges appurtenant thereto. -2- GENBUS/718957.4