Document:

EXHIBIT 10.5

 

INDEMNIFICATION
AGREEMENT

 

This Indemnification Agreement (this “Agreement”), dated as of [ __________ ]
[ __ ], 2005, is made by and between Inland American Real Estate
Trust, Inc., a Maryland corporation (the “Company” or the “Indemnitor”),
as indemnitor, and the director, officer, employee or agent of the Company
executing this Agreement as of or subsequent to the date hereof whether by
separate instrument, counterpart or otherwise, as indemnitee (the “Indemnified
Party”).  Capitalized terms used herein but
not otherwise defined herein shall have the meanings ascribed to them in the
Company’s Articles of Incorporation (as amended or restated from time to time, the
“Articles”).

 

R E C I T A L S

 

A.                                   The
Company was formed on October 4, 2004, and intends to operate as a real
estate investment trust (a “REIT”) for federal and state income tax purposes.

 

B.                                     The
Articles and the Company’s Bylaws (as amended or restated from time to time, the
“Bylaws”) authorize the Company to indemnify and advance expenses to the
Indemnified Party, subject to certain limitations and conditions.

 

C.                                     The
Indemnified Party has requested that the Company enter into a contract for
indemnity and advancement of expenses pursuant to the applicable sections of the
Articles and Bylaws, and the Company is willing to enter into such a contract.

 

NOW, THEREFORE, in consideration of the mutual covenants and conditions
hereinafter contained, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Company
Indemnification of the Indemnified Parties.

 

(a)                                  Subject
to paragraphs (b), (c) and (d) of this Section 1, the
Company shall, to the fullest extent permitted by Maryland statutory or decisional
law, as amended or interpreted, and, without limiting the generality of the
foregoing, in accordance with Section 2-418 of the Maryland General
Corporation Law, indemnify and pay, advance or reimburse reasonable expenses to
the Indemnified Party from and against any liability or loss to which the
Indemnified Party may become subject or which the Indemnified Party may incur
by reason of his or her services as a director, officer, employee or agent of
the Company.

 

(b)                                 The
Company shall not indemnify the Indemnified Party unless:

 

(i)                                     the
Directors have determined, in good faith, that the course of conduct which
caused the liability or loss was in the best interest of the Company;

 

(ii)                                  the
Indemnified Party was acting on behalf of or performing services on the part of
the Company;

 

 

(iii)                               the
liability or loss was not the result of negligence or misconduct on the part of
the Indemnified Party except that in the event the Indemnified Party is or was
an Independent Director, the liability or loss shall not have been the result
of gross negligence or willful misconduct;

 

(iv)                              the indemnification is recoverable only out
of the Net Assets of the Company and not from the Stockholders; and

 

(v)                                 in respect to an indemnification or
reimbursement of legal fees, the requisite Board of Directors, special legal
counsel or stockholders determination has been made that indemnification or
reimbursement is proper.

 

(c)                                  Notwithstanding
anything to the contrary in paragraph (b) above, the Company shall not
indemnify the Indemnified Party for liabilities or losses arising from or out
of an alleged violation of federal or state securities laws by the Indemnified Party 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 Indemnified Party;

 

(ii)                                  the
claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the Indemnified Party; or

 

(iii)                               a
court of competent jurisdiction approves a settlement of the claims and finds
that indemnification of the settlement and related costs should be made and the
court considering the request has been advised of the position of the
Securities and Exchange Commission and the published opinions of any state securities
regulatory authority in which securities of the Company were offered or sold as
to indemnification for violations of securities laws.

 

(d)                                 The
Company shall advance amounts to the Indemnified Party for legal and other expenses
and costs incurred as a result of any legal action for which indemnification is being sought only in accordance with Section 2-418
of the Maryland General Corporation Law, and only if all of the following
conditions are satisfied:

 

(i)                                     the
legal action relates to acts or omissions with respect to the performance of
duties or services by the Indemnified Party for or on behalf of the Company;

 

(ii)                                  the
legal action is initiated by a third party who is not a Stockholder or the
legal action is initiated by a Stockholder acting in his or her capacity as
such and a court of competent jurisdiction specifically approves the advancement;
and

 

(iii)                               the
Indemnified Party receiving the advances undertakes in writing to repay the
advanced funds to the Company, together with the applicable legal rate of
interest thereon, in the event that the Indemnified Party is found not to be
entitled to indemnification.

 

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(e)                                  The
Company shall have the power to purchase and maintain insurance or provide
similar protection on behalf of the Indemnified Party against any liability or
loss asserted that was incurred in any capacity with the Company or arising out
of this status; provided, however, that the Company shall not
incur the costs of any liability insurance that insures any Person against liability
or loss for which he, she or it could not be indemnified under the Articles.

 

(f)                                    Nothing
contained in this Agreement shall constitute a waiver by the Indemnified Party
of any right that the Indemnified Party may have against any Person under
federal or state securities laws.

 

2.                                       Notices.  All notices or other communications required
or permitted to be given or delivered hereunder shall be deemed to have been
properly given or delivered to the following address: (i) when delivered
personally or by commercial messenger; (ii) one business day following
deposit with a recognized overnight courier service, provided the deposit
occurs prior to the deadline imposed by the overnight courier; or (iii) when
transmitted, if sent by facsimile copy, provided confirmation of receipt is
received by sender and the notice is sent by an additional method provided
hereunder, in each case above provided the notice or other communication is
addressed to the intended recipient thereof as set forth below:

 

	
  Indemnitor:

  	
  Inland
  American Real Estate Trust, Inc.

  
	
   

  	
  2901
  Butterfield Road

  
	
   

  	
  Oak Brook,
  IL 60523

  
	
   

  	
  Attn:  Ms. Roberta
  S. Matlin,

  Vice President, Administration

  
	
   

  	
  Telephone:

  	
  (630)
  218-8000

  
	
   

  	
  Facsimile:

  	
  (630)
  218-4955

  
	
   

  	
   

  
	
   

  	
   

  
	
  Indemnified Party:

  	
  To the address
  set forth by the Indemnified

  Party on the signature page hereto

  

 

3.                                       Counterparts.
 This Agreement may be executed in
one or more counterparts, all or which taken together shall constitute one and the
same agreement, and shall become effective when the counterparts have been
signed by each party hereto and delivered to the other parties hereto.

 

4.                                       Governing
Law.  This Agreement shall be
construed, performed and enforced in accordance with, and governed by, the
internal laws of the State of Maryland, without giving effect to the principles
of conflicts of laws thereof.

 

5.                                       Amendments.  This Agreement may be amended or modified,
and any of the terms, covenants, representations, warranties or conditions
hereof may be waived, only by a written instrument executed by the parties
hereto, or in the case of a waiver, by the party waiving compliance.

 

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6.                                       Headings.  The descriptive headings in this Agreement are
for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

7.                                       Severability.  In the event that any part of this Agreement
is declared by any court or other judicial or administrative body to be null,
void or unenforceable, said provision shall survive to the extent it is not so
declared, and all of the other provisions of this Agreement shall remain in
full force and effect.

 

8.                                       Successor
and Assigns.  All references herein
to the Company hereunder shall be deemed to include all successors and assigns
of the Company.  The Indemnified Party
may not assign its benefits hereunder to any third party beneficiaries or
successors or assigns without the prior written consent of the Company.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

4

 

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

 

	
   

  	
  INDEMNITOR:

  
	
   

  	
   

  
	
   

  	
  INLAND AMERICAN REAL ESTATE TRUST, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNIFIED PARTY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Facsimile:EXHIBIT 10.35

                                 PROMISSORY NOTE

                                  JULY 13, 2005

JERSEY CITY, NEW JERSEY                                              $500,000.00

FOR VALUE RECEIVED, the Company, CORD BLOOD AMERICA, INC., a Florida corporation
(the "Company"), promises to pay CORNELL CAPITAL PARTNERS, LP (the "Lender") at
101 Hudson Street, Suite 3700, Jersey City, New Jersey 07302 or other address as
the Lender shall specify in writing, the principal sum of FIVE HUNDRED THOUSAND
DOLLARS ($500,000) pursuant to the following terms:

1. PAYMENTS. The Company shall repay this Promissory Note (the "Note") in two
equal principal payments of Two Hundred Fifty Thousand Dollars ($250,000) each.
The first principal payment shall be due and payable on the July 25, 2005 and
the second principal payment shall be due and payable on August 1, 2005. This
Note shall not bear interest unless and until there is an event of default.

2. FEES. The Company shall pay to Yorkville Advisors Management, LLC a
commitment fee of one and one quarter percent (1.25%) of the total principal
amount of this Promissory Note which shall be paid and deducted from the gross
proceeds of this Promissory Note.

3. CANCELLATION OF NOTE. Upon the repayment by the Company of all of its
obligations hereunder to the Lender, including, without limitation, the
principal amount of this Note, plus any accrued but unpaid interest, the
indebtedness evidenced hereby shall be deemed canceled and paid in full. Except
as otherwise required by law or by the provisions of this Note, payments
received by the Lender hereunder shall be applied first against expenses and
indemnities, next against interest accrued on this Note, and next in reduction
of the outstanding principal balance of this Note.

4. SEVERABILITY. If any provision of this Note is, for any reason, invalid or
unenforceable, the remaining provisions of this Note will nevertheless be valid
and enforceable and will remain in full force and effect. Any provision of this
Note that is held invalid or unenforceable by a court of competent jurisdiction
will be deemed modified to the extent necessary to make it valid and enforceable
and as so modified will remain in full force and effect.

5. EVENT OF DEFAULT. At the option of Lender, all sums advanced hereunder shall
become immediately due and payable, without notice or demand, upon the
occurrence of any one or more of the following events of default: (a) the
Company's failure to pay in full any payment of principal under this Promissory
Note within 7 days of the date when such payment of principal becomes due; (b)
the commencement of any proceedings under any bankruptcy or insolvency laws, by
or against the Company; or (c) an event of default under the Standby Equity
Distribution Agreement between the Company and the Lender. Upon the occurrence

<PAGE>

of any event of default as defined herein, all sums outstanding under this Note
shall thereupon immediately bear interest at the rate of twelve percent (12%)
per annum, without notice to the Company and without any affirmative action or
declaration on the part of Lender.

6. AMENDMENT AND WAIVER. This Note may be amended, or any provision of this Note
may be waived, provided that any such amendment or waiver will be binding on a
party hereto only if such amendment or waiver is set forth in a writing executed
by the parties hereto. The waiver by any such party hereto of a breach of any
provision of this Note shall not operate or be construed as a waiver of any
other breach.

7. SUCCESSORS. Except as otherwise provided herein, this Note shall bind and
inure to the benefit of and be enforceable by the parties hereto and their
permitted successors and assigns.

8. ASSIGNMENT. This Note shall not be directly or indirectly assignable or
delegable by the Company. The Lender may assign this Note as long as such
assignment complies with the Securities Act of 1933, as amended.

9. NO STRICT CONSTRUCTION. The language used in this Note will be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no
rule of strict construction will be applied against any party.

10. FURTHER ASSURANCES. Each party hereto will execute all documents and take
such other actions as the other party may reasonably request in order to
consummate the transactions provided for herein and to accomplish the purposes
of this Note.

11. COSTS, INDEMNITIES AND EXPENSES. In the event of default as described
herein, the Company agrees to pay all reasonable fees and costs incurred by the
Lender in collecting or securing or attempting to collect or secure this Note,
including reasonable attorneys' fees and expenses, whether or not involving
litigation, collecting upon any judgments and/or appellate or bankruptcy
proceedings. The Company agrees to pay any documentary stamp taxes, intangible
taxes or other taxes which may now or hereafter apply to this Note or any
payment made in respect of this Note, and the Company agrees to indemnify and
hold the Lender harmless from and against any liability, costs, attorneys' fees,
penalties, interest or expenses relating to any such taxes, as and when the same
may be incurred.

12. NO INCONSISTENT AGREEMENTS. None of the parties hereto will hereafter enter
into any agreement, which is inconsistent with the rights granted to the parties
in this Note.

13. THIRD PARTIES. Nothing herein expressed or implied is intended or shall be
construed to confer upon or give to any person or entity, other than the parties
to this Note and their respective permitted successor and assigns, any rights or
remedies under or by reason of this Note.

14. WAIVER OF JURY TRIAL. AS A MATERIAL INDUCEMENT FOR THE LENDER TO LOAN TO THE
COMPANY THE MONIES HEREUNDER, THE COMPANY HEREBY WAIVES ANY RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND
ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

                                       2

<PAGE>

15. ENTIRE AGREEMENT. This Note (including any recitals hereto) set forth the
entire understanding of the parties with respect to the subject matter hereof,
and shall not be modified or affected by any offer, proposal, statement or
representation, oral or written, made by or for any party in connection with the
negotiation of the terms hereof, and may be modified only by instruments signed
by all of the parties hereto.

16. MAXIMUM INTEREST. The Company does not intend or expect to pay, nor does
Lender intend or expect to charge, collect or accept, any interest greater than
the highest legal rate of interest which may be charged under any applicable
law. Should the acceleration hereof or any charges made hereunder result in the
computation or earning of interest in excess of such legal rate, any and all
such excess shall be and the same is hereby waived by Lender, and any such
excess shall be credited by Lender to the balance hereof.

17. RIGHT OF PREPAYMENT. Principal may be prepaid in whole or in part at any
time prior to the due date of a principal payment under this Note. There is no
prepayment fee or penalty. Each prepayment of principal shall be applied against
the payments last due under this Note. No partial prepayment of principal shall
act to suspend, postpone or waive any regularly scheduled payment of principal
under this Note.

18. GOVERNING LAW. This Promissory Note shall be construed and enforced
according to the laws of the State of New Jersey, excluding all principles of
choice of laws, conflict of laws or comity. Each person now or hereafter
becoming obligated for the payment of the indebtedness evidenced hereby
expressly consents to personal jurisdiction and venue of the Superior Court of
New Jersey, sitting in Hudson County, New Jersey and the United States District
Court of New Jersey, sitting in Newark, New Jersey, in the event of any
litigation in any way arising out of the loan evidenced hereby, or any property
given as collateral for the loan.

         IN WITNESS WHEREOF, with the intent to be legally bound hereby, the
Company has executed this Promissory Note as of the date first written above.

                                  CORD BLOOD AMERICA, INC.

                                  By:
                                      ------------------------------------------
                                  Name: Matthew Schissler
                                  Title:    Chairman and Chief Executive Officer

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