SUNRISE ASSISTED LIVING, INC.
LONG TERM INCENTIVE CASH BONUS PLAN
EFFECTIVE AUGUST 23, 2002
The purpose of the Sunrise Assisted Living, Inc. Long Term Incentive Cash Bonus Plan (the “Plan”) is to provide incentives
to certain key officers and other employees of the Company to contribute to the success of the Company’s wholly-owned
limited liability company (“Sunco”) and two (2) joint ventures, PS UK Investment (Jersey) Limited Partnership and PS Germany
Investment (Jersey) Limited Partnership (“PRICOA/Sunrise JVs”), by linking the payment of cash bonuses to the distribution of
cash to the Company by Sunco with respect to Sunco’s interest in the PRICOA/Sunrise JVs.
2.1 “Administrative Committee” means a committee comprised of the Chairman of the Board and Chief Executive Officer
of the Company and the President of the Company.
2.2 “Beneficiary” means the person or persons so designated by a Participant pursuant to Section 10.
2.3 “Board” means the Board of Directors of the Company.
2.4 “Bonus” or “Bonus Amount” means any amounts awarded to a Participant pursuant to Section 5.
2.5 “Bonus Account” means an account established and maintained for each Participant with respect to any Bonus
Amounts awarded to such Participant under the Plan. The Bonus Accounts shall be memorandum bookkeeping accounts only.
2.6 “Bonus Award Agreement” means a written agreement between the Company and a Participant made pursuant to
2.7 “Cause” means, as determined by the Board, (i) fraud or theft against the Company or a subsidiary or conviction (no
longer subject to appeal) for a felony offense; (ii) conviction (no longer subject to appeal) for a criminal offense involving moral
turpitude; (iii) compromising trade secrets or other proprietary information of the Company, a subsidiary, or the
PRICOA/Sunrise JVs that would result in mat