Document:

Indemnification CH

    
      

    

    EXHIBIT
      10.11

    

    Indemnification
      Agreement 

    between
      CNL Retirement Properties, Inc. and Clark Hettinga 

    dated
      December 31, 2004 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    INDEMNIFICATION
      AGREEMENT

     

    THIS
      INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the 14th
      day of January, 2005 and effective as of the 31st
      day of
      December, 2004 by and among CNL
      RETIREMENT PROPERTIES, INC., a
      Maryland corporation (the “Company”) and CLARK
      D. HETTINGA
      (the
“Indemnitee”).

     

     

    WITNESSETH:

     

    WHEREAS,
      the interpretation of ambiguous statutes, regulations, articles of incorporation
      and bylaws regarding indemnification of directors and officers may be too
      uncertain to provide such directors and officers with adequate notice of the
      legal, financial and other risks to which they may be exposed by virtue of
      their
      service as such; and

     

    WHEREAS,
      damages sought against directors and officers in shareholder or similar
      litigation by class action plaintiffs may be substantial, and the costs of
      defending such actions and of judgments in favor of plaintiffs or of settlement
      therewith may be prohibitive for individual directors and officers, without
      regard to the merits of a particular action and without regard to the
      culpability of, or the receipt of improper personal benefit by, any named
      director or officer to the detriment of the corporation; and

     

    WHEREAS,
      the issues in controversy in such litigation usually relate to the knowledge,
      motives and intent of the director or officer, who may be the only person with
      firsthand knowledge of essential facts or exculpating circumstances who is
      qualified to testify in his defense regarding matters of such a subjective
      nature, and the long period of time which may elapse before final disposition
      of
      such litigation may impose undue hardship and burden on a director or officer
      or
      his estate in establishing and maintaining a proper and adequate defense of
      himself or his estate against such claims for damages; and

     

    WHEREAS,
      the Company is organized under the Maryland General Corporation Law (the “MGCL”)
      and Section 2-418 of the MGCL empowers corporations to indemnify and advance
      expenses of litigation to a person who is or was a director or officer of the
      Company or any of the Affiliates, or a member of any committee of the Board,
      or
      a person who, while a director or officer of the Company, is or was serving
      at
      the request of the Company as a director, officer, partner (including service
      as
      a general partner of any limited partnership), trustee, employee, or agent
      of
      another foreign or domestic corporation, partnership, joint venture, trust,
      other incorporated or unincorporated entity or enterprise or employee benefit
      plan, and further provides that the indemnification and advancement of expenses
      set forth in said section, subject to certain limitations are not “exclusive of
      any other rights, by indemnification or otherwise, to which a director may
      be
      entitled under the charter, the bylaws, a resolution of stockholders or
      directors, an agreement or otherwise, both as to action in an official capacity
      and as to action in another capacity while holding such office”;
      and

     

    WHEREAS,
      the Articles of Incorporation of the Company, which may be amended or restated
      from time to time (the “Articles of Incorporation”), provide that the Company
      shall indemnify and hold harmless directors, advisors, or affiliates, as such
      terms are defined in the Articles of Incorporation; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WHEREAS,
      the Board of Directors of the Company (the “Board”) has concluded that it is
      reasonable and prudent for the Company to contractually obligate itself to
      indemnify the Indemnitee in a reasonable and adequate manner and to assume
      for
      itself maximum liability for expenses and damages in connection with claims
      lodged against Indemnitee for Indemnitee’s decisions and actions as a director
      and/or officer of the Company.

     

    NOW,
      THEREFORE, in consideration of the foregoing, and of other good and valuable
      consideration, the receipt and sufficiency of which is acknowledged by each
      of
      the parties hereto, the parties agree as follows:

     

    I.   

    DEFINITIONS

     

    For
      purposes of this Agreement, the following terms shall have the meanings set
      forth below:

     

    A.  “Board”
      shall
      mean the Board of Directors of the Company.

     

    B.  “Corporate
      Status”
      shall
      mean the status of a person who is or was a director or officer of the Company
      or any of the Affiliates, or a member of any committee of the Board, and the
      status of a person who, while a director or officer of the Company, is or was
      serving at the request of the Company as a director, officer, partner (including
      service as a general partner of any limited partnership), trustee, employee,
      or
      agent of another foreign or domestic corporation, partnership, joint venture,
      trust, other incorporated or unincorporated entity or enterprise or employee
      benefit plan.

     

    C.  “Disinterested
      Director”
      shall
      mean a director of the Company who neither is nor was a party to the Proceeding
      in respect of which indemnification is being sought by the
      Indemnitee.

     

    D.  “Expenses”
      shall
      mean without limitation expenses of Proceedings including all attorneys’ fees,
      retainers, court costs, transcript costs, fees of experts, investigation fees
      and expenses, accounting and witness fees, travel expenses, duplicating costs,
      printing and binding costs, telephone charges, postage, delivery service fees
      and all other disbursements or expenses of the types customarily incurred in
      connection with prosecuting, defending, preparing to prosecute or defend,
      investigating or being or preparing to be a witness in a
      Proceeding.

     

    E.  “Good
      Faith Act or Omission”
      shall
      mean an act or omission of the Indemnitee reasonably believed by the Indemnitee
      to be in or not opposed to the best interests of the Company or the Affiliates
      and other than (i) one involving negligence or misconduct, or, if the Indemnitee
      is an Independent Director, one involving gross negligence or willful
      misconduct; (ii) one that was material to the loss or liability and that was
      committed in bad faith or that was the result of active or deliberate
      dishonesty; (iii) one from which the Indemnitee actually received an improper
      personal benefit in the form of money, property or services; or (iv) in the
      case
      of a criminal Proceeding, one as to which the Indemnitee had cause to believe
      his conduct was unlawful.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    F.  “Independent
      Director”
      shall
      mean any director, manager or officer designated in the corporate records of
      the
      Company or the Company's subsidiaries as independent.

     

    G.  “Liabilities”
      shall
      mean liabilities of any type whatsoever, including, without limitation, any
      judgments, fines, excise taxes and penalties under the Employee Retirement
      Income Security Act of 1974, as amended, in addition to penalties and amounts
      paid in settlement (including all interest, assessments and other charges paid
      or payable in connection with or in respect of such judgments, fines, penalties
      or amounts paid in settlement) in connection with the investigation, defense,
      settlement or appeal of any Proceeding or any claim, issue or matter
      therein.

     

    H.  “Proceeding”
      shall
      mean any threatened, pending or completed action, suit, arbitration, alternate
      dispute resolution mechanism, investigation, administrative hearing or any
      other
      actual, threatened or completed proceeding whether civil, criminal,
      administrative or investigative, or any appeal therefrom, arising as a result
      of
      Indemnitee’s Corporate Status.

     

    I.  “Voting
      Securities”
      shall
      mean any securities of the Company that are entitled to vote generally in the
      election of directors.

     

    II.
      

      TERMINATION
        OF AGREEMENT

    

    This
      Agreement shall continue until, and terminate upon the later to occur of (i)
      the
      death of the Indemnitee; or (ii) the final termination of all Proceedings
      (including possible Proceedings) in respect of which the Indemnitee is granted
      rights of indemnification or advancement of Expenses hereunder and of any
      proceeding commenced by the Indemnitee regarding the interpretation or
      enforcement of this Agreement. Notwithstanding the foregoing, the
      indemnification provided by this Agreement shall be replaced by and convert
      to
      the level of indemnification provided pursuant to a uniform indemnification
      that
      the Company has approved for all persons who have obtained Corporate Status
      following the effective date of this Agreement. 

     

    III.   

    SERVICE
      BY INDEMNITEE, NOTICE OF 

    PROCEEDINGS,
      DEFENSE OF CLAIMS

     

    A.  Notice
      of Proceedings.
      The
      Indemnitee agrees to notify the Company promptly in writing upon being served
      with any summons, citation, subpoena, complaint, indictment, information or
      other document relating to any Proceeding or matter which may be subject to
      indemnification or advancement of Expenses covered hereunder, but the
      Indemnitee’s omission to so notify the Company shall not relieve the Company
      from any liability which it may have to the Indemnitee under this
      Agreement.

     

    B.  Defense
      of Claims.
      The
      Company shall be entitled to participate, at its own expense, in any Proceeding
      of which it has notice. The Company jointly with any other indemnifying party
      similarly notified of any Proceeding shall be entitled to assume the defense
      of
      the Indemnitee therein, with counsel reasonably satisfactory to the Indemnitee;
      provided, however, that the Company shall not be entitled to assume the defense
      of the Indemnitee in any Proceeding if the Indemnitee has reasonably concluded
      that there may be a conflict of interest between the Company and the Indemnitee
      with respect to such Proceeding. The Company shall not be liable to the
      Indemnitee under this Agreement for any Expenses incurred by the Indemnitee
      in
      connection with the defense of any Proceeding, other than reasonable costs
      of
      investigation or as otherwise provided below, after notice from the Company
      to
      the Indemnitee of its election to assume the defense of the Indemnitee therein.
      The Indemnitee shall have the right to employ his own counsel in any such
      Proceeding, but the fees and expenses of such counsel incurred after notice
      from
      the Company of its assumption of the defense thereof shall be at the expense
      of
      the Indemnitee unless (i) the employment of counsel by the Indemnitee has been
      authorized by the Company; (ii) the Indemnitee shall have reasonably concluded
      that counsel employed by the Company may not adequately represent the Indemnitee
      and shall have so informed the Company in writing; or (iii) the Company shall
      not in fact have employed counsel to assume the defense of the Indemnitee in
      such Proceeding or such counsel shall not, in fact, have assumed such defense
      or
      such counsel shall not be acting, in connection therewith, with reasonable
      diligence; and in each such case the fees and expenses of the Indemnitee’s
      counsel shall be advanced by the Company in accordance with this
      Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    C.  Settlement
      of Claims.
      The
      Company shall not settle any Proceeding in any manner which would impose any
      liability, penalty or limitation on the Indemnitee without the written consent
      of the Indemnitee; provided, however, that the Indemnitee will not unreasonably
      withhold or delay consent to any proposed settlement. The Company shall not
      be
      liable to indemnify the Indemnitee under this Agreement or otherwise for any
      amounts paid in settlement of any Proceeding effected by the Indemnitee without
      the Company’s written consent, which consent shall not be unreasonably withheld
      or delayed.

     

    IV.   

    INDEMNIFICATION

     

    A.  In
      General.
      Upon
      the terms and subject to the conditions set forth in this Agreement, the Company
      shall hold harmless and indemnify the Indemnitee against any and all Liabilities
      actually incurred by or for him in connection with any Proceeding (whether
      the
      Indemnitee is or becomes a party, a witness or otherwise is a participant in
      any
      role) to the fullest extent required or permitted by the Articles of
      Incorporation and by applicable law in effect on the date hereof and to such
      greater extent as applicable law may hereafter from time to time permit. For
      all
      matters for which the Indemnitee is entitled to indemnification under this
      Article IV, the Indemnitee shall be entitled to advancement of Expenses in
      accordance with Article V hereof.

     

    B.  Proceeding
      Other Than a Proceeding by or in the Right of the Company.
      If the
      Indemnitee was or is a party or is threatened to be made a party to any
      Proceeding (whether the Indemnitee is or becomes a party, a witness or otherwise
      is a participant in any role) (other than a Proceeding by or in the right of
      the
      Company or any Affiliate) by reason of Indemnitee’s Corporate Status, or by
      reason of alleged action or inaction by Indemnitee in any such capacity, the
      Company shall, subject to the limitations set forth in Section IV.F. below,
      hold
      harmless and indemnify Indemnitee against any and all Expenses and Liabilities
      actually and reasonably incurred by or for the Indemnitee in connection with
      the
      Proceeding if the act(s) or omission(s) of the Indemnitee giving rise thereto
      were Good Faith Act(s) or Omission(s).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    C.  Proceedings
      by or in the Right of the Company.
      If the
      Indemnitee was or is a party or is threatened to be made a party to any
      Proceeding (whether the Indemnitee is or becomes a party, a witness or otherwise
      is a participant in any role) by or in the right of the Company or any Affiliate
      to procure a judgment in its favor by reason of Indemnitee’s Corporate Status,
      or by reason of any action or inaction by Indemnitee in any such capacity,
      the
      Company shall, subject to the limitations set forth in Section IV.F. below,
      hold
      harmless and indemnify Indemnitee against any and all Expenses actually incurred
      by or for Indemnitee in connection with the investigation, defense, settlement
      or appeal of such Proceeding if the act(s) or omission(s) of the Indemnitee
      giving rise to the Proceeding were Good Faith Act(s) or Omission(s); except
      that
      no indemnification under this Section IV.C. shall be made in respect of any
      claim, issue or matter as to which the Indemnitee shall have been finally
      adjudged to be liable to the Company or any Affiliate, unless a court of
      appropriate jurisdiction (including, but not limited to, the court in which
      such
      Proceeding was brought) shall determine upon application that, despite the
      adjudication of liability but in view of all the circumstances of the case,
      regardless of whether the Indemnitee’s act(s) or omission(s) were found to be
      Good Faith Act(s) or Omission(s), the Indemnitee is fairly and reasonably
      entitled to indemnification for such Expenses which such court shall deem
      proper.

     

    D.  Indemnification
      of a Party Who is Wholly or Partly Successful.
      Notwithstanding any other provision of this Agreement, to the extent that the
      Indemnitee is, by reason of the Indemnitee’s Corporate Status, a party to and is
      successful, on the merits or otherwise, in any Proceeding, the Indemnitee shall
      be indemnified by the Company to the maximum extent consistent with applicable
      law, against all Expenses and Liabilities actually incurred by or for him in
      connection therewith. If the Indemnitee is not wholly successful in such
      Proceeding but is successful, on the merits or otherwise, as to one or more
      but
      less than all claims, issues or matters in such Proceeding, the Company shall
      hold harmless and indemnify the Indemnitee to the maximum extent consistent
      with
      applicable law, against all Expenses and Liabilities actually and reasonably
      incurred by or for Indemnitee in connection with each successfully resolved
      claim, issue or matter in such Proceeding. Resolution of a claim, issue or
      matter by dismissal, with or without prejudice, except as provided in subsection
      F hereof, shall be deemed a successful result as to such claim, issue or matter,
      so long as there has been no finding that the act(s) or omission(s) of the
      Indemnitee giving rise thereto were not Good Faith Act(s) or
      Omission(s).

     

    E.  Indemnification
      for Expenses of Witness.
      Notwithstanding any other provision of this Agreement, to the extent that the
      Indemnitee, by reason of the Indemnitee’s Corporate Status, has prepared to
      serve or has served as a witness in any Proceeding, or has participated in
      discovery proceedings or other trial preparation, the Indemnitee shall be held
      harmless and indemnified against all Expenses actually and reasonably incurred
      by or for him in connection therewith.

     

    F.  Specific
      Limitations on Indemnification.
      In
      addition to the other limitations set forth in this Article IV, and
      notwithstanding anything in this Agreement to the contrary, the Company shall
      not be obligated under this Agreement to make any payment to the Indemnitee
      for
      indemnification with respect to any Proceeding:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    1.  To
      the
      extent that payment is actually made to the Indemnitee under any insurance
      policy or is made on behalf of the Indemnitee by or on behalf of the Company
      otherwise than pursuant to this Agreement.

     

    2.  If
      a
      court in such Proceeding has entered a judgment or other adjudication which
      is
      final and has become nonappealable and establishes that a claim of the
      Indemnitee for such indemnification arose from: (i) a breach by the Indemnitee
      of the Indemnitee’s duty of loyalty to the Company or its shareholders; (ii)
      acts or omissions of the Indemnitee that are not Good Faith Acts or Omissions
      or
      which are the result of active and deliberate dishonesty; (iii) acts or
      omissions of the Indemnitee which the Indemnitee had reasonable cause to believe
      were unlawful; or (iv) a transaction in which the Indemnitee actually received
      an improper personal benefit in the form of money, property or
      services.

     

    3.  For
      Liabilities in connection with Proceedings settled without the consent of the
      Company which consent, however, shall not be unreasonably withheld.

     

    4.  For
      any
      loss or liability arising from an alleged violation of federal or state
      securities laws unless one or more of the following conditions are met: (i)
      there has been a successful adjudication on the merits of each count involving
      alleged securities law violations as to the Indemnitee; (ii) such claims have
      been dismissed with prejudice on the merits by a court of competent jurisdiction
      as to the Indemnitee; or (iii) a court of competent jurisdiction approves a
      settlement of the claims against the Indemnitee and finds that indemnification
      of the settlement and the related costs should be made, and the court
      considering the request for indemnification has been advised of the position
      of
      the Securities and Exchange Commission and of the published position of any
      state securities regulatory authority in which securities of the Company were
      offered or sold as to indemnification for violations of securities
      laws.

     

    V.   

    ADVANCEMENT
      OF EXPENSES

    

    Notwithstanding
      any provision to the contrary in Article VI hereof, the Company shall advance
      to
      the Indemnitee all Expenses which, by reason of the Indemnitee’s Corporate
      Status, were incurred by or for Indemnitee in connection with any Proceeding
      for
      which the Indemnitee is entitled to indemnification pursuant to Article IV
      hereof, in advance of the final disposition of such Proceeding, provided that
      all of the following are satisfied: (i) the Indemnitee was made a party to
      the
      proceeding by reason of Indemnitee’s Corporate Status; (ii) the Indemnitee
      provides the Company with written affirmation of Indemnitee’s good faith belief
      that Indemnitee has met the standard of conduct necessary for indemnification
      by
      the Company pursuant to Article IV hereof; (iii) the Indemnitee provides the
      Company with a written agreement (the “Undertaking”) to repay the amount paid or
      reimbursed by the Company, together with the applicable legal rate of interest
      thereon, if it is ultimately determined that the Indemnitee did not comply
      with
      the requisite standard of conduct; and (iv) the legal proceeding was initiated
      by a third party who is not a stockholder of the Company or, if by a stockholder
      of the Company acting in his or her capacity as such, a court of competent
      jurisdiction approves such advancement. The Indemnitee shall be required to
      execute and submit the Undertaking to repay Expenses advanced in the form of
      Exhibit A attached hereto or in such form as may be required under applicable
      law as in effect at the time of execution thereof. The Undertaking shall
      reasonably evidence the Expenses incurred by or for the Indemnitee and shall
      contain the written affirmation by the Indemnitee, described above, of
      Indemnitee’s good faith belief that the standard of conduct necessary for
      indemnification has been met. The Company shall advance such expenses within
      five (5) business days after the receipt by the Company of the Undertaking.
      The
      Indemnitee hereby agrees to repay any Expenses advanced hereunder if it shall
      ultimately be determined that the Indemnitee is not entitled to be indemnified
      against such Expenses. Any advances and the undertaking to repay pursuant to
      this Article V shall be unsecured.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    VI.   

    PROCEDURE
      FOR PAYMENT OF LIABILITIES;

    DETERMINATION
      OF RIGHT TO INDEMNIFICATION

     

    A.  Procedure
      for Payment.
      To
      obtain indemnification for Liabilities under this Agreement, the Indemnitee
      shall submit to the Company a written request for payment, including with such
      request such documentation as is reasonably available to the Indemnitee and
      reasonably necessary to determine whether, and to what extent, the Indemnitee
      is
      entitled to indemnification and payment hereunder. The Secretary of the Company,
      or such other person as shall be designated by the Board of Directors, promptly
      upon receipt of a request for indemnification shall advise the Board of
      Directors, in writing, of such request. Any indemnification payment due
      hereunder shall be paid by the Company no later than five (5) business days
      following the determination, pursuant to this Article VI, that such
      indemnification payment is proper hereunder.

     

    B.  No
      Determination Necessary when the Indemnitee was Successful.
      To the
      extent the Indemnitee has been successful, on the merits or otherwise, in
      defense of any Proceeding referred to in Sections IV.B. or IV.C. above or in
      the
      defense of any claim, issue or matter described therein, the Company shall
      indemnify the Indemnitee against Expenses actually and reasonably incurred
      by or
      for Indemnitee in connection with the investigation, defense or appeal of such
      Proceeding.

     

    C.  Determination
      of Good Faith Act or Omission.
      In the
      event that Section VI.B. is inapplicable, the Company also shall hold harmless
      and indemnify the Indemnitee unless the Company shall prove by clear and
      convincing evidence that the act(s) or omission(s) of the Indemnitee giving
      rise
      to the Proceeding were not Good Faith Act(s) or Omission(s).

     

    VII.   

    PRESUMPTIONS
      AND EFFECT

    OF
      CERTAIN PROCEEDINGS

     

    A.  Burden
      of Proof.
      In
      making a determination with respect to entitlement to indemnification hereunder,
      the person, persons, entity or entities making such determination shall presume
      that the Indemnitee is entitled to indemnification under this Agreement and
      the
      Company shall have the burden of proof to overcome that
      presumption.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    B.  Effect
      of Other Proceedings.
      The
      termination of any Proceeding or of any claim, issue or matter therein, by
      judgment, order or settlement shall not create a presumption that the act(s)
      or
      omission(s) giving rise to the Proceeding were not Good Faith Act(s) or
      Omission(s). The termination of any Proceeding by conviction, or upon a plea
      of
      non contendere, or its equivalent, or an entry of an order of probation prior
      to
      judgment, shall create a rebuttable presumption that the act(s) or omission(s)
      of the Indemnitee giving rise to the Proceeding were not Good Faith Act(s)
      or
      Omission(s).

     

    C.  Reliance
      as Safe Harbor.
      For
      purposes of any determination of whether any act or omission of the Indemnitee
      was a Good Faith Act or Omission, each act of the Indemnitee shall be deemed
      to
      be a Good Faith Act or Omission if the Indemnitee’s action is reasonably based
      on the records or books of accounts of the Company or its Affiliates, including
      financial statements, or on information supplied to the Indemnitee by the
      officers of the Company or its Affiliates in the course of their duties, or
      on
      the advice of legal counsel for the Company or its Affiliates or on information
      or records given or reports made to the Company or its Affiliates by an
      independent certified public accountant or by an appraiser or other expert
      selected with reasonable care by the Company or its Affiliates. The provisions
      of this Section VII.C. shall not be deemed to be exclusive or to limit in any
      way the other circumstances in which the Indemnitee may be deemed to have met
      the applicable standard of conduct set forth in this Agreement or under
      applicable law.

     

    D.  Actions
      of Others.
      The
      knowledge and/or actions, or failure to act, of any director, officer, agent
      or
      employee of the Company or its Affiliates shall not be imputed to the Indemnitee
      for purposes of determining the right to indemnification under this
      Agreement.

     

    VIII.   

    INSURANCE

     

    In
      the
      event that the Company maintains officers’ and directors’ or similar liability
      insurance to protect itself and any director or officer of the Company or its
      Affiliates against any expense, liability or loss, such insurance shall cover
      the Indemnitee to at least the same degree as each other director and/or officer
      of the Company or its Affiliates.

     

    IX.   

    OBLIGATIONS
      OF THE COMPANY

    UPON
      A CHANGE IN CONTROL

    

    Upon
      Indemnitee’s written request, the Company shall require any successor or
      assignee (whether direct or indirect, by purchase, merger, consolidation or
      otherwise) to all or substantially all of its respective assets or business,
      by
      written agreement in form and substance reasonably satisfactory to the
      Indemnitee, expressly to assume and agree to be bound by and to perform this
      Agreement in the same manner and to the same extent as the Company would be
      required to perform absent such succession or assignment.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    X.

    ARBITRATION

     

    A.  Arbitration
      Procedures.
      All
      disputes between the parties or any claims concerning the performance, breach,
      construction or interpretation of this Agreement, or in any manner arising
      out
      of this Agreement, shall be submitted to binding arbitration in accordance
      with
      the commercial arbitration rules, as amended from time to time, of the American
      Arbitration Association (the “AAA”), which arbitration shall be carried out in
      the manner set forth below.

     

    B.  Within
      fifteen (15) days after written notice by one party to the other party of its
      demand for arbitration, which demand shall set forth the name and address of
      its
      designated arbitrator, the other party shall appoint its designated arbitrator
      and so notify the demanding party. Within fifteen (15) days thereafter, the
      two
      arbitrators so appointed shall appoint the third arbitrator. If the two
      appointed arbitrators cannot agree on the third arbitrator, then the AAA shall
      appoint an independent arbitrator as the third arbitrator. The dispute shall
      be
      heard by the arbitrators within ninety (90) days after appointment of the third
      arbitrator. The decision of any two or all three of the arbitrators shall be
      binding upon the parties without any right of appeal. The decision of the
      arbitrators shall be final and binding upon the Company, its successors and
      assigns, and the Indemnitee.

     

    C.  The
      arbitration proceedings shall take place in Orlando, Florida and the judgment
      and determination of such proceedings shall be binding on all parties. Judgment
      upon any award rendered by the arbitrators may be entered into any court having
      competent jurisdiction without any right of appeal.

     

    D.  The
      fees
      and expenses of the arbitration shall be paid by the prevailing party. The
      decision of any two or all three of the arbitrators shall be final and binding
      upon the Indemnitee and the Company and its successors and assigns.

     

    XI.   

    NON-EXCLUSIVITY,

    SUBROGATION
      AND MISCELLANEOUS

     

    A.  Non-Exclusivity.
      The
      rights of the Indemnitee hereunder shall not be deemed exclusive of any other
      rights to which the Indemnitee may at any time be entitled under any provision
      of law, the Articles of Incorporation, the Bylaws of the Company, as the same
      may be in effect from time to time, any agreement, a vote of shareholders of
      the
      Company or a resolution of directors of the Company or otherwise, and to the
      extent that during the term of this Agreement the rights of the then-existing
      directors and officers of the Company are more favorable to such directors
      or
      officers than the rights currently provided to the Indemnitee under this
      Agreement, the Indemnitee shall be entitled to the full benefits of such more
      favorable rights. No amendment, alteration, rescission or replacement of this
      Agreement or any provision hereof which would in any way limit the benefits
      and
      protections afforded to the Indemnitee hereby shall be effective as to the
      Indemnitee with respect to any action or inaction by the Indemnitee in the
      Indemnitee’s Corporate Status prior to such amendment, alteration, rescission or
      replacement.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    B.  Subrogation.
      In the
      event of any payment under this Agreement, the Company shall be subrogated
      to
      the extent of such payment to all of the rights of recovery of the Indemnitee,
      who shall execute all documents required and take all action necessary to secure
      such rights, including execution of such documents as are necessary to enable
      the Company to bring suit to enforce such rights.

     

    C.  Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be deemed to have been duly given (i) if delivered by hand,
      by
      courier or by telegram and receipted for by the party to whom said notice or
      other communication shall have been directed at the time indicated on such
      receipt; (ii) if by facsimile at the time shown on the confirmation of such
      facsimile transmission; or (iii) if by U.S. certified or registered mail, with
      postage prepaid, on the third business day after the date on which it is so
      mailed:

    

      
        	
                If
                  to the Indemnitee, as shown with the Indemnitee’s signature
                  below.

              
	 
	
                If
                  to the Company to:

              	
                CNL
                  Retirement Properties, Inc.

              
	 	
                450
                  South Orange Avenue 

                Orlando,
                  FL 32801

                Attention:
                  President

                Facsimile
                  No. (407) 540-2554

              

      

    

     

    or
      to
      such other address as may have been furnished to the Indemnitee by the Company
      or to the Company by the Indemnitee, as the case may be.

     

    D.  Governing
      Law.
      The
      parties agree that this Agreement shall be governed by, and construed and
      enforced in accordance with, the substantive laws of the State of Maryland,
      without application of the conflict of laws principles thereof.

     

    E.  Binding
      Effect.
      Except
      as otherwise provided in this Agreement, this Agreement shall be binding upon
      and inure to the benefit of the parties hereto and their heirs, executors,
      administrators, successors, legal representatives and permitted assigns. The
      Company shall require any successor or assignee (whether direct or indirect,
      by
      purchase, merger, consolidation or otherwise) to all or substantially all of
      its
      respective assets or business, by written agreement in form and substance
      reasonably satisfactory to the Indemnitee, expressly to assume and agree to
      be
      bound by and to perform this Agreement in the same manner and to the same extent
      as the Company would be required to perform absent such succession or
      assignment.

     

    F.  Waiver.
      No
      termination, cancellation, modification, amendment, deletion, addition or other
      change in this Agreement, or any provision hereof, or waiver of any right or
      remedy herein, shall be effective for any purpose unless specifically set forth
      in a writing signed by the party or parties to be bound thereby. The waiver
      of
      any right or remedy with respect to any occurrence on one occasion shall not
      be
      deemed a waiver of such right or remedy with respect to such occurrence on
      any
      other occasion.

     

    G.  Entire
      Agreement.
      This
      Agreement, constitutes the entire agreement and understanding among the parties
      hereto in reference to the subject matter hereof; provided, however, that the
      parties acknowledge and agree that the Articles of Incorporation of the Company,
      and any subsequent amendments may contain provisions on the subject matter
      hereof and that this Agreement is not intended to, and does not, limit the
      rights or obligations of the parties hereto pursuant to such
      instruments.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    H.  Titles.
      The
      titles to the articles and sections of this Agreement are inserted for
      convenience of reference only and should not be deemed a part hereof or affect
      the construction or interpretation of any provisions hereof.

     

    I.  Invalidity
      of Provisions.
      Every
      provision of this Agreement is severable, and the invalidity or unenforceability
      of any term or provision shall not effect the validity or of the remainder
      of
      this Agreement.

     

    J.  Pronouns
      and Plurals.
      Whenever the context may require, any pronoun used in this Agreement shall
      include the corresponding masculine, feminine or neuter forms, and the singular
      form of nouns, pronouns and verbs shall include the plural and vice
      versa.

     

    K.  Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together constitute one agreement binding
      on all the parties hereto.

    

     

    [SIGNATURE
      PAGES TO FOLLOW]

     

    
      
        
           

        

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

     

     

    

    
      	 	 “Company”
	 	 
	
              Signed,
                Sealed and Delivered

              In
                the presence of:

            	
              CNL
                RETIREMENT PROPERTIES, INC., a
                Maryland corporation

            
	 	 
	 	
              By:

            	
              /s/
                Stuart J. Beebe

            
	
              /s/
                Amy J. Patterson

            	
              Name:

            	
              Stuart
                J. Beebe

            
	
              Name:

            	
              Amy
                J. Patterson

            	
              Title:

            	
              EVP
                of Acquisitions & Finance

            
	 	 
	 	 
	
              /s/
                Linda A. Scarcelli

            	 
	
              Name:

            	
              Linda
                A. Scarcelli

            	 
	 	 

    

     

    
      	 	 

              “Indemnitee”

            
	 	 
	
              Signed,
                Sealed and Delivered

              In
                the presence of:

            	
              CLARK
                D. HETTINGA

            
	 	
              /s/
                Clark D. Hettinga

            
	 	 
	
              /s
                Amy J. Patterson

            	
              Address:

            	
              5415
                Tildens Grove Blvd

            
	
              Name:

            	
              Amy
                J. Patterson

            	 	
              Windermere,
                FL 34786

            
	 	 	 
	 	 
	
              /s/
                Linda A. Scarcelli

            	 
	
              Name:

            	
              Linda
                A. Scarcelli

            	 
	 	 

    

    

    

    

     

    

     

    
      
        
           

        

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

     

    FORM
      OF UNDERTAKING TO REPAY EXPENSES ADVANCED

     

    The
      Board
      of Directors of CNL Retirement Properties, Inc.

     

    Re: Undertaking
      to Repay Expenses Advanced 

     

    Ladies
      and Gentlemen:

     

    This
      undertaking is being provided pursuant to that certain Indemnification Agreement
      dated the________ day of __________, 20____, by and among
      _______________________. and the undersigned Indemnitee (the “Indemnification
      Agreement”), pursuant to which I am entitled to advancement of expenses in
      connection with [Description of Proceeding] (the “Proceeding”). Terms used
      herein and not otherwise defined shall have the meanings specified in the
      Indemnification Agreement.

     

    I
      am
      subject to the Proceeding by reason of my. Corporate Status or by reason of
      alleged actions or omissions by me in such capacity. During the period of time
      to which the Proceeding relates I was — [name of office(s) held] of
      ___________________________. Pursuant to Section IV of the Indemnification
      Agreement, the Company is obligated to reimburse me for Expenses that are
      actually and reasonably incurred by or for me in connection with the Proceeding,
      provided that I execute and submit to the Company an Undertaking in which I
      (i)
      undertake to repay any Expenses paid by the Company on my behalf, together
      with
      the applicable legal rate of interest thereon, if it shall be ultimately
      determined that I am not entitled to be indemnified thereby against such
      Expenses; (ii) affirm my good faith belief that I have met the standard of
      conduct necessary for indemnification; and (iii) reasonably evidence the
      Expenses incurred by or for me.

     

    [Description
      of expenses incurred by or for Indemnitee]

     

    This
      letter shall constitute my undertaking to repay to the Company any Expenses
      paid
      by it on my behalf, together with the applicable legal rate of interest thereon,
      in connection with the Proceeding if it is ultimately determined that 1 am
      not
      entitled to be indemnified with respect to such Expenses as set forth above.
      I
      hereby affirm my good faith belief that I have met the standard of conduct
      necessary for indemnification and that I am entitled to such
      indemnification.

    
 

    
      
        	 	 
	 	
                Signature

              
	 	 
	 	 
	 	
                Name

              
	 	 
	 	 
	 	
                Date

              

      

    

     

     

    
      
        
        

      

      
        14Filed by Automated Filing Services Inc. (604) 609-0244 - Sound Revolution Inc. - Exhibit 10.2

 Exhibit 10.2 

 ADDENDUM TO LEASE AGREEMENT 

 This Addendum to the Lease Agreement dated May 14, 2004 is
  entered into as of May 1, 2005, by and between Sound Revolution Inc., a Delaware
  Corporation ("Tenant") and Ryan Tunnicliffe doing business as Spaceship Studios
  ("Landlord").

WHEREFORE the parties agree as follows: 

	 1.      	 Beginning on May 1, 2005, the new premises leased by the Tenant, and
      occupied by the Tenant and its subsidiary, Sound Revolution Recordings Inc.,
      from the Landlord shall be a 200 square foot office located at 345 West
      11th Avenue, Unit 4, Vancouver, BC, V5Y 1T3. 
	 
	 2.      	 All other terms of the lease agreement dated May 14, 2004 shall remain
      the same. 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease Agreement as of May 1, 2005. 

	 /s/ Penny Green  	 /s/ Ryan Tunnicliffe  
	
Tenant: Sound Revolution Inc. 
		
Landlord: R. Tunnicliffe d.b.a Spaceship 
	
	 

		
Studios 
	

 Exhibit A 

 Description of Leasehold Premises and Equipment 

Premises: Suite 205, a 380 square foot studio located on the 2nd floor of Greenhouse Studios, located at 3995 Graveley Street, Burnaby, British Columbia

 Equipment: Computer DAW Running Emagic Logic, Nuendo and Pro tools Computer
  Non-Linear Editing System, 210gb Adobe Premeire, After Effects Roland JV-30
  midi controller Yamaha RM1x Midi Sequencer Emu Launch Pad Midi Controller Korg
  Electribe ES Groove Sampler Yamaha Ry-30 Rhythm Programmer Korg MicroKorg 

  Synth 

  Ensoiq DP4+ 

  Aphex Aural Exciter 

  Emu ESI-4000 Sampler 

  Lexocon Vortex Signal Processor 

  DeltaLab Effectron Delay Line 

  Symtrix SG-200 Dual Signal Gates (2) 

  Spirirt Folio Mixer 

  Videoonics Mx1. video mixer 

  Yamaha cs-10 Vintage Analog Synth 

  Yamaha cs-15 

  Vestex Turntables and Mixer 

  Sony TRV-900 3CCD DV 

  Canon Vistua Digital Video Camera 

  Audio Technica 291b Mic

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]