1043000--3/11/2010--CAPITAL_SENIOR_LIVING

related topics

{debt, indebtedness, cash}

{investment, property, distribution}

{cost, regulation, environmental}

{provision, law, control}

{personnel, key, retain}

{competitive, industry, competition}

{regulation, change, law}

{product, liability, claim}

{regulation, government, change}

{acquisition, growth, future}

{cost, operation, labor}

We have significant operating lease obligations and our failure to generate cash flows sufficient to cover these lease obligations could result in defaults under the lease agreements. Our failure to comply with financial covenants and other restrictions contained in debt instruments and lease agreements could result in the acceleration of the related debt or lease or in the exercise of other remedies. We will require additional financing and/or refinancings in the future and may issue equity securities. Any future floating rate debt and lease obligations could expose us to rising interest rates. We cannot assure that we will be able to effectively manage our growth. We cannot assure that we will attempt to, or be able to, acquire additional senior living communities, expand existing senior living communities, or develop new senior living communities. Termination of resident agreements and resident attrition could affect adversely our revenues and earnings. We largely rely on private pay residents and circumstances that adversely affect the ability of the elderly to pay for our services could have a material adverse effect on us. We are subject to risks related to third-party management agreements. Failure to perform our obligations under our joint venture arrangements could have a material adverse effect on us. The senior living services industry is very competitive and some competitors may have substantially greater financial resources than us. We rely on the services of key executive officers and the loss of these officers or their services could have a material adverse effect on us. A significant increase in our labor costs could have a material adverse effect on us. There is an inherent risk of liability in the provision of personal and health care services, not all of which may be covered by insurance. We are subject to government regulations and compliance, some of which are burdensome and some of which may change to our detriment in the future. We may be subject to liability for environmental damages. Anti-takeover provisions in our governing documents, governing law, material agreements and our shareholder rights plan may discourage, delay or prevent a merger or acquisition that our stockholders may consider favorable or prevent the removal of our current board of directors and management.

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1043000--3/11/2010--CAPITAL_SENIOR_LIVING_CORP