repricing and when most employees signed their repricing
acknowledgments, and during which the Company's stock price increased
-- Grants made in 2000 and 2001 in connection with an opportunity provided
to certain employees with options exercisable above the then applicable
market price to cancel those options and receive new, market-priced
-- Three grants in which the exercise price for the options was set at the
closing price for the Company's stock on the date of the grant, rather
than at the closing price of the trading date immediately prior to the
date of the grant, as contemplated by the terms of the Company's stock
-- Certain grants which lacked sufficient documentation to determine when
the stock option grant was authorized.
-- Certain grants in connection with which the Company corrected
administrative errors retroactively, which included adding grants to
new hires who had been inadvertently omitted from a recommendation list
and correcting the number of options granted to individuals.
-- Certain grants in which the Company modified the terms of a grant after
it was made.
-- Certain grants in which the Company granted options to consultants but
accounted for such options as grants issued to employees.
The Special Independent Committee has provided its findings to the Company. As disclosed in the Company's July 25, 2007 press release, the Company has concluded that errors were made in connection with the accounting for the September 1998 repricing and certain other stock option grants.
The Company is in the process of quantifying the amount of the non-cash
stock compensation expense that it will be required to record as part of
its restatement related to the 1998 repricing and these other stock option
grants, which amount is li
|SOURCE Sunrise Senior Living, Inc.|
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