Document:

Exhibit 10.23

                                                                CONFORMED COPY

                             TAX MATTERS AGREEMENT
                           Dated as of June 18, 2004

                                BY AND BETWEEN

                        ALTERRA HEALTHCARE CORPORATION
                                   "Seller"

                                      AND

                         PROVIDENT SENIOR LIVING TRUST
                                  "Acquiror"

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                             TAX MATTERS AGREEMENT

            This TAX MATTERS AGREEMENT (this "Agreement") is dated as of June
18, 2004, by and between Alterra Healthcare corporation, a Delaware
corporation ("Seller") and Provident Senior Living Trust, a Maryland real
estate investment trust ("Acquiror").

                                  WITNESSETH

            WHEREAS, Seller and Acquiror have entered into a Stock Purchase
Agreement dated as of the date hereof (the "Purchase Agreement"), pursuant to
which, among other things, Acquiror has agreed to acquire all the outstanding
shares of common stock of ALS Venture I, Inc., ALS West, Inc., AHC Borrower,
Inc. and ALS Financing II, Inc., each being a Delaware corporation (the
"Companies");

            WHEREAS, Seller and Acquiror desire to make an election under
Section 338(h)(10) of the Code with respect to the purchase and sale of the
stock of the Companies pursuant to the Purchase Agreement, as a result of
which the Companies will be deemed to transfer all their assets and
liabilities to new target corporations and to liquidate into Seller under
Section 332 of the Code for Federal income tax purposes, and the tax year for
the Companies will end on the Closing Date; and

            WHEREAS, as a condition to entering into the Purchase Agreement
and the Transaction Agreements (as defined in the Purchase Agreement), and as
an inducement to do so, the parties hereto are entering into this Agreement;

            NOW, THEREFORE, in consideration of the promises and mutual
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

            Section 1.   Definitions. For purposes of this Agreement, the
following terms shall apply:

                  (a)   "Acquiror" shall have the meaning set forth in the
      Introductory Paragraph.

                  (b)   "Code" shall mean the Internal Revenue Code of 1986,
      as amended.

                  (c)   "Final Determination" shall mean (i) a decision,
      judgment, decree, or other order by any court of competent jurisdiction,
      which decision, judgment, decree, or other order has become final after
      all allowable appeals by either party to the action have been exhausted
      or the time for filing such appeal has expired, (ii) a closing agreement
      entered into under Section 7121 of the Code, or any final settlement
      agreement entered in connection with any administrative or judicial
      proceeding, or (iii) the expiration of time for instituting a claim for
      refund, or if such claim was filed, the expiration of time for
      instituting a suit with respect thereto.

                  (d)   "Indemnity Amount" shall mean the amount payable by
      Seller to an Acquiror pursuant to Section 3.

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                  (e)   "Pre-Closing Period" shall mean any taxable year or
      period that ends on or before the Closing Date.

                  (f)   "Post-Closing Period" shall mean any taxable year or
      period that begins after the Closing Date.

                  (g)   "REIT" shall mean a real estate investment trust,
      within the meaning of Sections 856 et. seq., of the Code.

                  (h)   "Seller" shall have the meaning set forth in the
      Introductory Paragraph.

                  (i)   "Straddle Period" shall mean, with respect to any
      taxable year or period of an entity or group of entities that begins on
      or before the Closing Date but ends after the Closing Date, the portion
      of such taxable year or period that (i) begins on the first day of such
      taxable year or period, and (ii) ends on the Closing Date.

                  (j)   "Tax" and/or "Taxes" shall mean all Federal, state,
      local and foreign taxes, charges, fees, duties (including customs
      duties), levies or other assessments, including without limitation,
      income, gross receipts, net proceeds, ad valorem, turnover, real and
      personal property (tangible and intangible), sales, use, franchise,
      excise, value added, stamp, transfer, leasing, lease, user, transfer,
      fuel, excess profits, occupational, interest equalization, windfall
      profits, severance, license, payroll, environmental, capital stock,
      disability, employee's income withholding, other withholding, and
      unemployment taxes, which are imposed by any governmental authority, and
      such term shall include any interest, penalties or additions to tax
      attributable thereto.

                  (k)   "Tax Authority" shall mean any governmental authority
      having jurisdiction over the assessment, determination, collection, or
      imposition of any Tax.

                  (l)   "Tax Return" shall mean a report, return or other
      information return required to be supplied to a governmental entity with
      respect to Taxes (and any amendments thereto) including, combined or
      consolidated returns for any group of entities.

                  (m)   Any capitalized terms used herein and not defined
      herein, shall have the meaning assigned to it in the Purchase Agreement.

            Section 2.   Tax Liability for Straddle Period. For purposes of
this Agreement, the Tax liability of any entity with respect to a Straddle
Period shall be computed as follows: (i) in the case of Taxes of an entity
that are either based upon or related to income or receipts, the Tax liability
for the Straddle Period shall be deemed equal to the amount that would be
payable if the period for which such Tax is assessed had ended on and included
the Closing Date, not including transactions occurring on the Closing Date
after the Closing, determined, to the extent permissible under applicable laws
and commercially practicable, in a manner which is consistent with such
entity's accounting practices and business operations as in effect prior to
the Closing Date; (ii) in the case of Taxes that are incurred as a result of
any sale, transfer, assignment or distribution of property, or other similar
transaction engaged in, by any such entity, the Tax

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liability for the Straddle Period shall be the amount due with respect to any
such sale, transfer, assignment, distribution, or other similar transaction
occurring on or prior to the Closing Date (not including transactions
occurring on the Closing Date but after the Closing); and (iii) in the case of
all other Taxes, Tax liability attributable to the Straddle Period shall be
equal to the Taxes imposed with respect to the Tax period that includes the
Straddle Period multiplied by a fraction, the numerator of which is the number
of days in the Straddle Period through and including the Closing Date and the
denominator of which is the number of days in the Tax period with respect to
which such Taxes are imposed; provided, however, that notwithstanding the
foregoing provisions of this section, with respect to real property Taxes,
Section 2.04 of the Purchase Agreement shall govern.

            Section 3.   Amount and Scope of Indemnification.

                  (a)   Seller shall indemnify, defend, and hold harmless
      Acquiror against and reimburse Acquiror for all Taxes, losses, damages,
      cost, expenses, liabilities, obligations and claims of any kind
      (including reasonable attorneys' fees and costs of investigation) in
      connection with Taxes of the Companies that are attributable to a
      Pre-Closing Period, including without limitation Taxes properly
      allocable to a Straddle Period under Section 2, or that Acquiror may at
      any time suffer or incur, or become subject to, as a result of or in
      connection with the material inaccuracy of any representation or
      warranty made by Seller in Section 3.19 of the Purchase Agreement or in
      the schedules referred to in Section 3.19 of the Purchase Agreement.
      Acquiror, if and to the extent it qualifies as a REIT with respect to
      any taxable period and jurisdiction, shall not be required to make
      additional distributions to its shareholders to reduce or eliminate its
      liability for Taxes otherwise indemnified against hereunder, whether or
      not such distributions are required to be made to maintain the
      Acquiror's status as a REIT, but to the extent Acquiror is permitted to,
      and chooses to, make any such additional distributions to its
      shareholders, any reduction in Acquiror's liability for Taxes as a
      result of such additional distributions shall be taken into account in
      computing the Indemnity Amount hereunder.

                  (b)   In the event Acquiror makes a claim for
      indemnification hereunder, Acquiror shall provide Seller with a written
      statement setting forth in reasonable detail the basis of the claim for
      indemnification and the calculation of the amount owing under Section
      3(a) (the "Indemnity Amount").

                  (c)   Any payment determined due to Acquiror pursuant to
      this Section 3 shall be paid within the later of (i) twenty (20)
      business days after written notice from Acquiror to Seller that such
      amounts are due and payable, or (ii) ten (10) business days prior to the
      due date for any return (including without limitation any return of
      estimated income taxes) on which Acquiror would reflect such income or
      gain.

                  (d)   Upon request of Seller, the basis of the claim and the
      accuracy of Acquiror's calculation of the Indemnity Amount payable to
      Acquiror pursuant to Section 3 shall be verified by an independent,
      nationally recognized accounting firm (other than the preparer of
      Acquiror's or Seller's Tax Returns or financial statements) acceptable
      to Seller and Acquiror. In the event that the parties are unable to
      agree on an acceptable accounting firm, each shall select one accounting
      firm as its representative and the two

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      accounting firms so selected shall select a third firm to perform the
      requisite verification. In order to enable such accountants to verify
      the basis and accuracy of such claim, Acquiror and Seller shall provide
      to such accountants all information reasonably necessary for such
      verification, including without limitation any computer analyses used by
      Acquiror or Seller to calculate or question, as the case may be, such
      amount or amounts. In conducting its verification, the accounting firm
      shall consult with, and consider in good faith the opinions and
      positions of, Acquiror and Seller as to the proper resolution of any
      matters at issue. The review and determination of such calculations by
      such accounting firm pursuant to this Section 3(d) shall be final. The
      parties hereto agree that, if the accounting firm is required to resolve
      any matters relating to the computations, the accounting firm (i) shall
      provide Acquiror and Seller with a written notification that describes
      in reasonable detail the matter or matters at issue, and (ii) prior to
      its resolution of the matter or matters at issue, shall provide Acquiror
      and Seller with an opportunity to set forth their positions concerning
      the proper resolution of the matter or matters at issue in accordance
      with a procedure reasonably acceptable to both Acquiror and Seller. The
      cost of such verification shall be borne by Seller unless it is the
      determination of such verification that the actual amount or amounts
      payable (exclusive of interest and penalties) deviates, in a manner
      favorable to Seller, by more than 10% from the amount originally
      determined by Acquiror, in which case such cost shall be borne by
      Acquiror.

                  (e)   At the request and expense of Seller, Acquiror shall
      seek any refund of any Tax. In the event Acquiror receives a refund of
      (i) any amount which gave rise to an indemnification payment hereunder,
      or (ii) any Tax paid by the Companies prior to the Closing Date with
      respect to a Pre-Closing Period or Straddle Period, Acquiror shall
      refund such indemnification payment to Seller; provided, however, that
      if either party has notified the other that there may be an amount due
      to Acquiror from Seller pursuant to this Agreement or the Purchase
      Agreement, Acquiror may withhold payment until resolution of that claim
      has occurred.

                  (f)   Acquiror agrees not to file any amended return of any
      of the Companies with respect to a Pre-Closing Period or Straddle Period
      without the prior written consent of the Seller.

                  (g)   To the extent that Acquiror or an Affiliate realizes
      an actual Tax benefit as a result of the event giving rise to the
      indemnity payment hereunder (such as, by way of example but not
      limitation, a savings in Federal income Taxes resulting from an increase
      in deductible state Taxes that are indemnified, in a case in which the
      indemnity payment itself does not give rise to gross income for Federal
      income tax purposes), Acquiror shall promptly rebate to Seller the
      amount of such Tax benefit.

            Section 4.   Exclusions. (a) Notwithstanding any other provision
of this Agreement, Seller shall not have any liability for indemnification
under this Agreement for any Tax liability attributable, in whole or in part,
to:

                        (i)   any fraud, willful misconduct or gross
      negligence of Acquiror or officer, director, employee or agent thereof;

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                        (ii)  any Tax resulting from a determination that
      Acquiror is not treated as the owner of the Leased Property for income
      tax purposes (including, but not limited to, any adverse effect on
      Acquiror's status as a REIT); or

                        (iii) the willful failure of Acquiror to comply on a
      timely basis with certification, information, documentation, reporting
      or other similar requirements imposed on such Acquiror, or the willful
      failure of Acquiror to comply with its obligations set forth in Section
      5, to the extent Seller demonstrates that its ability to contest such
      Tax liability is actually prejudiced by such willful failure of
      Acquiror.

                  (b)   Acquiror and Seller agree, for themselves and on
      behalf of their respective existing and future affiliates and
      representatives, that notwithstanding any provision to the contrary in
      this Agreement, the Purchase Agreement or any other Transaction
      Agreement, with respect to each indemnification obligation in this
      Agreement, in no event shall the Seller have liability to the Acquiror
      for any punitive, incidental, indirect or consequential damages, damages
      for the loss of profits or other special damages (including, but not
      limited to, any adverse effect on Acquiror's status as a REIT, unless
      such failure is due to Seller's or Seller's willful misconduct,
      recklessness or gross negligence), and in no event shall Taxes (subject
      to the immediately preceding parenthetical clause) include any of the
      foregoing.

                  (c)   Notwithstanding anything to the contrary in this
      Agreement, no liability shall be imposed upon Seller for any liability
      for Taxes for amounts that are required to be paid by Seller, or any
      affiliate, as Tenant, to Acquiror, or any of its affiliates, as
      Landlord, under the Transaction Documents, including but not limited to
      transfer and similar Taxes relating to the transactions contemplated
      thereunder.

                  (d)   Notwithstanding anything to the contrary in this
      Agreement or any other Transaction Agreement, Seller shall have no
      liability for Taxes to the Acquiror or any of its affiliates.

                  (e)   Notwithstanding anything to the contrary in this
      Agreement, Seller shall not be liable for any Taxes arising from
      transactions that occur following the Closing, including transactions
      occurring on the Closing Date after the Closing, and Acquiror shall not
      be liable for any Taxes of the Companies arising from transactions that
      occur at or preceding the Closing.

            Section 5.   Preparation of Tax Returns. Seller will be
responsible for the preparation and filing of all Tax Returns for the
Companies for all Pre-Closing Periods, and will pay all third-party costs and
expenses incurred in preparing and filing such Tax Returns. Acquiror will be
responsible for the preparation and filing of all Tax Returns for the
Companies for all Post-Closing Periods and any Tax period that includes a
Straddle Period. All Tax Returns of the Companies for any Pre-Closing Period
and any Straddle Period shall be prepared in a manner consistent with the
applicable entity's past practices as in effect prior to the Closing Date;
provided, however, that such past practices are in accordance with the Code
and the

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regulations thereunder. Acquiror shall submit any Tax Return that includes a
Straddle Period to Seller for review and consent, which consent shall not be
unreasonably withheld. Each of Acquiror and Seller agrees to reasonably
cooperate in making available information necessary to the preparation and
filing of such Tax Returns and each agrees to make available, at its expense,
records and employees of the Companies, Seller and Acquiror necessary for the
preparation or such Tax Returns. Acquiror and its accountants will be provided
for their review, a draft of each material Tax Return with respect to any
period (or portion thereof) ending on or before the Closing Date at least 20
days prior to the date Seller intends to file such Tax Return. To the extent
that positions previously taken on Tax Returns of the Companies require
further explication or substantiation in order for the Acquiror to prepare Tax
Returns with respect to Post-Closing Periods, the Seller shall provide or
cause to be provided such information and background with respect to such
matters as the Acquiror may from time to time reasonably request.

            Section 6.   Contests Pertaining to Tax.

                  (a)   Acquiror shall promptly notify Seller (but in no event
      later than 5 Business Days following the receipt by Acquiror) of (i) the
      assertion of any claim or any dispute of any Tax reporting position, the
      commencement of any audit or examination of any of the Companies by any
      Tax Authority with respect to any Pre-Closing Period or Straddle Period
      and (ii) the receipt by it from the Internal Revenue Service of a
      written, proposed or final revenue agent's report, a 30-day letter or a
      notice of deficiency (as described in 6212 of the Code) or similar
      written notice from a Tax authority of a state, local, or foreign
      government, in which an adjustment is proposed or determined to the
      Taxes for which Seller may be required to provide indemnification
      pursuant to this Agreement (a "Tax Claim"); provided, however, that any
      failure to provide such notice shall not relieve Seller of any
      obligation to indemnify Acquiror hereunder except, notwithstanding
      anything to the contrary contained in Section 4(iii), to the extent that
      the Seller's ability to contest such adjustment is prejudiced in
      Seller's discretion by such failure of the Acquiror.

                  (b)   Seller shall have the sole right to represent the
      interests of any of the Companies, and to settle any dispute with
      respect to Taxes arising, in any Tax audit or administrative or court
      proceeding relating to Pre-Closing Periods or to any Straddle Period of
      any of the Companies and to employ counsel of Seller's choice at
      Seller's expense to carry out such representation; provided, however,
      that Seller shall notify Acquiror of its intention to represent such
      interests within ten (10) Business Days of Seller's receipt of the
      notice from Acquiror in accordance with Section 6(a). Acquiror agrees
      that it will cooperate fully with Seller and Seller's counsel in the
      defense against or compromise of any claim in any said proceeding.
      Acquiror shall execute and deliver to Seller any power of attorney or
      other document requested by Seller in connection with any audit or
      administrative or court proceeding with respect to which Seller is
      representing the interests of any of the Companies (or any
      successor-in-interest) in any proceeding described in this Section 6. In
      connection with any audit or administrative or court proceeding with
      respect to which Seller is representing the interests of any of the
      Companies (or any successor-in-interest), Seller shall consult in good
      faith with, and keep reasonably informed, Acquiror and its counsel and
      shall provide Acquiror with copies of

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      any documents, reports or claims issued by or sent to the relevant
      auditing agent or Tax Authority, as well as a reasonable opportunity to
      review and comment thereon, but the decisions regarding what actions are
      to be taken shall be made by Seller in its reasonable judgment, taking
      into account the reasonable requests and interests of the Acquiror.

                  (c)   Acquiror shall not make payment of any claim for at
      least ten (10) days after giving written notice of such claim to Seller
      if such forbearance is permitted by law. If the conduct of the contest
      requires Acquiror to pay the tax claimed and file or sue for a refund,
      Seller shall advance to such Acquiror, on an interest-free basis,
      sufficient funds to pay the tax and any interest, penalties and
      additions to tax payable with respect thereto (to the extent such amount
      is subject to Seller's indemnity obligations hereunder). Acquiror shall
      as promptly as practicable use such funds to pay such tax, interest,
      penalties or additions to tax, as the case may be.

                  (d)   If Acquiror receives any settlement offer from the
      Internal Revenue Service or similar notice from a Tax authority of a
      state, local, or foreign government with respect to a claim for which
      Acquiror seeks indemnity from Seller, such Acquiror shall promptly
      inform Seller of the receipt of such settlement offer. If Seller
      recommends acceptance of such settlement offer, but Acquiror declines to
      accept such offer in writing within thirty (30) days: (i) the obligation
      of Seller to make indemnity payments under this Agreement as the result
      of any such contest or proceedings shall not exceed the obligation that
      it would have had if such contest had been settled or proceeding
      terminated on such date on the basis of the settlement offer the
      acceptance of which was recommended by Seller; and (ii) Seller shall
      have no further liability for costs or other expenses in respect of such
      contest. Acquiror shall not settle any claim without Seller's consent;
      provided, however, that Acquiror shall not be required to contest any
      proposed adjustment and may settle any such proposed adjustment if (i)
      Acquiror shall waive its right to indemnity with respect to such
      adjustment and shall refund to Seller any amount previously paid or
      advanced by Seller with respect to such adjustment or the contest of
      such adjustment.

                  (e)   If Seller shall have duly complied with all the terms
      of this Section 6, Seller's liability for indemnification, if any, under
      Section 3(a), shall be deferred (subject to the provisions of Section
      6(c) hereof) until a Final Determination of the liability of such
      Acquiror. At such time, Seller shall become obligated for the payment of
      any indemnification hereunder resulting from the outcome of such
      contest, and Acquiror shall become obligated to refund to Seller any
      amount received as a refund by Acquiror or credited to Acquiror
      attributable to advances by Seller hereunder. Within thirty (30) days
      following such Final Determination, any amounts due hereunder shall be
      paid first by set off against each other and either (i) Seller shall pay
      to Acquiror any excess of the full amount due hereunder over the amount
      of any advances previously made by Seller and applied against Seller's
      indemnity obligation as aforesaid or (ii) Acquiror shall repay to Seller
      any excess of such advances over such full amount due hereunder,
      together with the portion of any interest received by such Acquiror that
      is properly attributable to such excess amount of such advances during
      the period such advances were outstanding, and, if Seller shall have
      indemnified such Acquiror with respect to the adverse tax

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      consequences of any advances or payments hereunder, the amount of tax
      savings, if any, resulting from any payment pursuant to this sentence.

            Section 7.   Cooperation. Acquiror agrees to consider in good
faith any action (including filing claims for refund and amended Tax Returns)
which it is reasonably requested to take by Seller that would minimize the net
amount of any indemnity payment due from Seller hereunder.

            Section 8.   Adjustment to Purchase Price. All amounts, other than
interest accrued on amounts due but unpaid, paid by Seller to the Acquiror, or
reimbursed by the Acquiror to the Seller, as the case may be, are for Federal
income tax purposes intended by the parties to be, and shall to the extent
permitted by law be treated as, an adjustment to the Purchase Price and not to
constitute an item of income or deduction to either party for such purposes.

            Section 9.   Election under Section 338(h)(10) of the Code. Seller
and Acquiror shall join in making an election under Section 338(h)(10) of the
Code (and any corresponding elections under state or local tax law)
(collectively a "Section 338(h)(10) Election") with respect to the purchase
and sale of the stock of the Companies hereunder. Acquiror shall prepare the
Section 338(h)(10) Election forms and shall provide drafts of such forms for
Seller's approval. Acquiror shall file such forms after the Seller has
reviewed and signed the same. Seller shall not unreasonably delay the filing
of such forms.

            Section 10.   Section 338(h)(10) Taxes. Seller shall pay any Tax
(federal, state or local) attributable to the making of the Section 338(h)(10)
Election and will indemnify the Acquiror or the Companies against any adverse
consequences arising out of any failure to pay such Tax.

            Section 11.   Allocation of Purchase Price. A schedule (the
"Allocation Schedule") prepared in accordance with Sections 338 and 1060 of
the Code, and the regulations thereunder, allocating the Purchase Price among
the assets of the Companies is attached as Schedule A. The Seller and Acquiror
agree to file IRS Forms 8883 and 8594, and all federal, state and local Tax
Returns, in accordance with the Allocation Schedule on a timely basis, and to
file on a timely basis such amended IRS Forms 8883 and 8594 as may be required
from time to time in connection with any purchase price adjustments. Each of
the Seller and the Acquiror agrees promptly to provide the other party hereto
with any other information reasonably necessary to complete any such Form 8883
or 8594.

            Section 12.   Notices. All notices, demands, declarations,
consents, directions, approvals, instructions, requests and other
communications required or permitted by the terms of this Agreement shall be
given in the same manner as in the Purchase Agreement.

            Section 13.   Miscellaneous.

                  (a)   Except as otherwise provided herein, the terms and
      conditions of this Agreement shall be binding upon and inure solely to
      the benefit of the parties hereto and their respective successors and
      assigns, and nothing in this Agreement, express or implied, is intended
      to confer upon any party other than the parties hereto or their

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      respective successors and assigns any rights or remedies of any nature
      whatsoever under or by reason of this Agreement.

                  (b)   THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
      INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
      WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW PRINCIPLES OF SUCH STATE
      THAT MIGHT REFER THE GOVERNANCE, CONSTRUCTION OR INTERPRETATION OF THIS
      AGREEMENTS TO THE LAWS OF ANOTHER JURISDICTION. EACH OF SELLER AND
      ACQUIROR AGREES IRREVOCABLY AND UNCONDITIONALLY TO:

                        (i)   submit for itself and its property in any Action
      relating to this Agreement, or for recognition and enforcement of any
      judgment in respect thereof, to the exclusive jurisdiction of the Courts
      of the State of New York sitting in the County of New York, the court of
      the United States of America for the Southern District of New York, and
      appellate courts having jurisdiction of appeals from any of the
      foregoing, and agrees that all claims in respect of any such Action
      shall be heard and determined in such New York State court or, to the
      extent permitted by law, in such federal court;

                        (ii)  consent that any such Action may and shall be
      brought in such courts and waives any objection that it may now or
      hereafter have to the venue or jurisdiction of any such Action in any
      such court or that such Action was brought in an inconvenient court and
      agrees not to plead or claim the same;

                        (iii) waive all right to trial by jury in any Action
      (whether based on contract, tort or otherwise) arising out of or
      relating to any of this Agreement, or its performance under or the
      enforcement of this Agreement;

                        (iv)  agree that service of process in any such Action
      may be effected by mailing a copy of such process by registered or
      certified mail (or any substantially similar form of mail), postage
      prepaid, to such party at its address as provided in Section 12; and

                        (v)   agree that nothing in this Agreement shall
      affect the right to effect service of process in any other manner
      permitted by the Laws of the State of New York.

                  (c)   This Agreement may be executed in two or more
      counterparts, each of which shall be deemed to be an original, but all
      of which shall constitute one and the same agreement.

                  (d)   When a reference is made in this Agreement to
      Sections, such reference shall be to a Section of this Agreement, unless
      otherwise indicated. The headings contained in this Agreement are for
      reference purposes only and shall not affect in any way the meaning or
      interpretation of this Agreement. Whenever the words

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      "include," "includes" or "including" are used in this Agreement, they
      shall be deemed to be followed by the words "without limitation."

                  (e)   Except as described in Sections 3, 5 and 6 above, each
      party shall pay all costs and expenses that it incurs with respect to
      the negotiation, execution, delivery and performance of this Agreement.
      If any action at law or in equity is necessary to enforce or interpret
      the terms of this Agreement, the prevailing party shall be entitled to
      reasonable attorneys' fees, costs and necessary disbursements in
      addition to any other relief to which such party may be entitled.

                  (f)   Any term of this Agreement may be amended, and the
      observance of any term of this Agreement may be waived (either generally
      or in a particular instance and either retroactively or prospectively),
      only with the written consent of Acquiror and Seller.

            Section 14.   Term. Except as otherwise provided herein, with
respect to indemnification under Section 3(a) for Taxes, the term of this
Agreement shall extend from the date hereof until such time as the applicable
statute of limitations (including any extensions thereof) bars a claim by the
Internal Revenue Service or relevant foreign, state or local Tax authority for
a Tax otherwise indemnifiable under this Agreement.

            Section 15.   Termination. This Agreement shall automatically
terminate upon the termination of the Purchase Agreement in accordance with
its terms. In the event of the termination of this Agreement pursuant to this
Section 15, except as expressly provided in the Purchase Agreement, no party
hereto shall have any liability to any other party with respect to this
Agreement or the transactions contemplated hereby and this Agreement shall be
of no further force or effect.

            Section 16.   Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced under any Law or
as a matter of public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated by this Agreement
is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties to this Agreement shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in a mutually acceptable manner in order that
the transactions contemplated by this Agreement be consummated as originally
contemplated to the greatest extent possible.

            Section 17.   Entire Agreement. Except as otherwise provided in
this Agreement, or as otherwise expressly agreed in writing by the parties,
this Agreement and the other Transaction Documents constitute the entire
agreement and supersede all other prior or contemporaneous oral or written
agreements and understandings among the parties, or any of them, with respect
to the subject matter hereof, and there are no warranties, representations or
other agreements, express or implied, made to any party by any other party in
connection with the subject matter hereof or thereof except as specifically
set forth herein or therein or in the documents delivered pursuant hereto or
in connection herewith.

                                      10
<PAGE>

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

                        ALTERRA HEALTHCARE CORPORATION

                        By:         /s/  Mark Ohlendorf
                           ---------------------------------------------------
                           Name:  Mark Ohlendorf
                           Title: President and CEO

                        PROVIDENT SENIOR LIVING TRUST

                        By:         /s/  Darryl W. Copeland, Jr.
                           ---------------------------------------------------
                           Name:  Darryl W. Copeland, Jr.
                           Title: Chief Executive Officer

                                      11Exhibit 10.24

                           INDEMNIFICATION AGREEMENT

      THIS INDEMNIFICATION AGREEMENT is made and entered into as of the ______
____________, 20__ ("Agreement"), by and between Provident Senior Living
Trust, a Maryland real estate investment trust (the "Company"), and
("Indemnitee").

      WHEREAS, at the request of the Company, Indemnitee currently serves as a
[trustee] [officer] of the Company and may, therefore, be subjected to claims,
suits or proceedings arising as a result of his service; and

      WHEREAS, as an inducement to Indemnitee to continue to serve as such
[trustee] [officer], the Company has agreed to indemnify and to advance
expenses and costs incurred by Indemnitee in connection with any such claims,
suits or proceedings, to the maximum extent permitted by law; and

      WHEREAS, the parties by this Agreement desire to set forth their
agreement regarding indemnification and advance of expenses;

      NOW, THEREFORE, in consideration of the premises and the covenants
contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

      Section 1. Definitions. For purposes of this Agreement:

      (a) "Change in Control" shall be defined as set forth in Attachment A
annexed hereto and made a part hereof.

      (b) "Corporate Status" means the status of a person who is or was a
director, trustee, officer, employee or agent of the Company or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise for which such person is or was serving at the request of the
Company.

      (c) "Disinterested Trustee" means a trustee of the Company who is not
and was not a party to the Proceeding in respect of which indemnification is
sought by Indemnitee.

      (d) "Effective Date" means the date set forth in the first paragraph of
this Agreement.

      (e) "Expenses" shall include all reasonable and out-of-pocket attorneys'
fees, retainers, court costs, transcript costs, fees of experts, 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.

      (f) "Independent Counsel" means a law firm, or a member of a law firm,
that is experienced in matters of corporation law as applicable to Maryland
real estate investment trusts and neither is, nor in the past five years has
been, retained to represent: (i) the Company or Indemnitee in any matter
material to either such party, or (ii) any other party to or witness in the

<PAGE>

Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term "Independent Counsel" shall not
include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee's rights under this
Agreement. If a Change in Control has not occurred, Independent Counsel shall
be selected by the Board of Trustees, with the approval of Indemnitee, which
approval will not be unreasonably withheld. If a Change in Control has
occurred, Independent Counsel shall be selected by Indemnitee, with the
approval of the Board of Trustees, which approval will not be unreasonably
withheld.

      (g) "Proceeding" includes any threatened, pending or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation,
administrative hearing or any other proceeding, whether civil, criminal,
administrative or investigative (including on appeal), except one pending or
completed on or before the Effective Date, unless otherwise specifically
agreed in writing by the Company and Indemnitee.

      Section 2. Services by Indemnitee. Indemnitee will serve as a [trustee]
[officer] of the Company. However, this Agreement shall not impose any
obligation on Indemnitee or the Company to continue Indemnitee's service to
the Company beyond any period otherwise required by law or by other agreements
or commitments of the parties, if any.

      Section 3. Indemnification - General. The Company shall indemnify, and
advance Expenses to, Indemnitee (a) as provided in this Agreement and (b)
otherwise to the maximum extent permitted by Maryland law in effect on the
date hereof and as amended from time to time; provided, however, that no
change in Maryland law shall have the effect of reducing the benefits
available to Indemnitee hereunder based on Maryland law as in effect on the
date hereof. The rights of Indemnitee provided in this Section 3 shall
include, without limitation, the rights set forth in the other sections of
this Agreement, including any additional indemnification permitted by Section
2-418(g) of the Maryland General Corporation Law ("MGCL"), as applicable to a
Maryland real estate investment trust by virtue of Section 8-301(15) of the
Maryland REIT Law.

      Section 4. Proceedings Other Than Proceedings by or in the Right of the
Company. Indemnitee shall be entitled to the rights of indemnification
provided in this Section 4 if, by reason of his Corporate Status, he is, or is
threatened to be, made a party to or a witness in any Proceeding, other than a
Proceeding by or in the right of the Company. Pursuant to this Section 4,
Indemnitee shall be indemnified against all judgments, penalties, fines and
amounts paid in settlement and all Expenses actually and reasonably incurred
by him or on his behalf in connection with a Proceeding by reason of his
Corporate Status unless it is established that (i) the act or omission of
Indemnitee was material to the matter giving rise to the Proceeding and (a)
was committed in bad faith or (b) was the result of active and deliberate
dishonesty, (ii) Indemnitee actually received an improper personal benefit in
money, property or services, or (iii) in the case of any criminal Proceeding,
Indemnitee had reasonable cause to believe that his conduct was unlawful.

      Section 5. Proceedings by or in the Right of the Company. Indemnitee
shall be entitled to the rights of indemnification provided in this Section 5
if, by reason of his Corporate Status, he is, or is threatened to be, made a
party to or a witness in any Proceeding brought by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 5,

                                      2

<PAGE>

Indemnitee shall be indemnified against all amounts paid in settlement and all
Expenses actually and reasonably incurred by him or on his behalf in
connection with such Proceeding unless it is established that (i) the act or
omission of Indemnitee was material to the matter giving rise to such a
Proceeding and (a) was committed in bad faith or (b) was the result of active
and deliberate dishonesty or (ii) Indemnitee actually received an improper
personal benefit in money, property or services.

      Section 6. Court-Ordered Indemnification. Notwithstanding any other
provision of this Agreement, a court of appropriate jurisdiction, upon
application of Indemnitee and such notice as the court shall require, may
order indemnification in the following circumstances:

      (a) if it determines Indemnitee is entitled to reimbursement under
Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in
which case Indemnitee shall be entitled to recover the expenses of securing
such reimbursement; or

      (b) if it determines that Indemnitee is fairly and reasonably entitled
to indemnification in view of all the relevant circumstances, whether or not
Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b)
of the MGCL or (ii) has been adjudged liable for receipt of an improper
personal benefit under Section 2-418(c) of the MGCL, the court may order such
indemnification as the court shall deem proper. However, indemnification with
respect to any Proceeding by or in the right of the Company or in which
liability shall have been adjudged in the circumstances described in Section
2-418(c) of the MGCL shall be limited to Expenses actually and reasonably
incurred by him or on his behalf in connection with a Proceeding.

      Section 7. Indemnification for Expenses of a Party Who is Wholly or
Partly Successful. Notwithstanding any other provision of this Agreement, and
without limiting any such provision, to the extent that Indemnitee is, by
reason of his Corporate Status, made a party to and is successful, on the
merits or otherwise, in the defense of any Proceeding, he shall be indemnified
for all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith. If 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 indemnify Indemnitee under this Section 7 for all Expenses actually and
reasonably incurred by him or on his behalf in connection with each
successfully resolved claim, issue or matter, allocated on a reasonable and
proportionate basis. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to
such claim, issue or matter.

      Section 8. Advance of Expenses. The Company shall advance all reasonable
Expenses actually and reasonably incurred by or on behalf of Indemnitee in
connection with any Proceeding (other than a Proceeding brought to enforce
indemnification under this Agreement, applicable law, the Declaration of Trust
or Bylaws of the Company any agreement or a resolution of the shareholders
entitled to vote generally in the election of trustees or of the Board of
Trustees) to which Indemnitee is, or is threatened to be, made a party or a
witness, within ten days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such

                                      3

<PAGE>

Proceeding. Such statement or statements shall reasonably evidence the
Expenses incurred by Indemnitee and shall include or be preceded or
accompanied by a written affirmation by Indemnitee of Indemnitee's good faith
belief that the standard of conduct necessary for indemnification by the
Company as authorized by law and by this Agreement has been met and a written
undertaking by or on behalf of Indemnitee, in substantially the form attached
hereto as Attachment B or in such form as may be required under applicable law
as in effect at the time of the execution thereof, to reimburse the portion of
any Expenses advanced to Indemnitee relating to claims, issues or matters in
the Proceeding as to which it shall ultimately be established that the
standard of conduct has not been met and which have not been successfully
resolved as described in Section 7. To the extent that Expenses advanced to
Indemnitee do not relate to a specific claim, issue or matter in the
Proceeding, such Expenses shall be allocated on a reasonable and proportionate
basis. The undertaking required by this Section 8 shall be an unlimited
general obligation by or on behalf of Indemnitee and shall be accepted without
reference to Indemnitee's financial ability to repay such advanced Expenses
and without any requirement to post security therefor.

      Section 9. Procedure for Determination of Entitlement to
Indemnification.

      (a) To obtain indemnification under this Agreement, Indemnitee shall
submit to the Company a written request, including therein or therewith such
documentation and information as is reasonably available to Indemnitee and is
reasonably necessary to determine whether and to what extent Indemnitee is
entitled to indemnification. The Secretary of the Company shall, promptly upon
receipt of such a request for indemnification, advise the Board of Trustees in
writing that Indemnitee has requested indemnification.

      (b) Upon written request by Indemnitee for indemnification pursuant to
the first sentence of Section 9(a) hereof, a determination, if required by
applicable law, with respect to Indemnitee's entitlement thereto shall
promptly be made in the specific case: (i) if a Change in Control shall have
occurred, by Independent Counsel in a written opinion to the Board of
Trustees, a copy of which shall be delivered to Indemnitee; or (ii) if a
Change in Control shall not have occurred, (A) by the Board of Trustees (or a
duly authorized committee thereof) by a majority vote of a quorum consisting
of Disinterested Trustees (as herein defined), or (B) if a quorum of the Board
of Trustees consisting of Disinterested Trustees is not obtainable or, even if
obtainable, such quorum of Disinterested Trustees so directs, by Independent
Counsel in a written opinion to the Board of Trustees, a copy of which shall
be delivered to Indemnitee, or (C) if so directed by a majority of the members
of the Board of Trustees, by the shareholders of the Company. If it is so
determined that Indemnitee is entitled to indemnification, payment to
Indemnitee shall be made within ten days after such determination. Indemnitee
shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee's entitlement to indemnification, including
providing to such person, persons or entity upon reasonable advance request
any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination in the discretion of the Board of
Trustees or Independent Counsel if retained pursuant to clause (ii)(B) of this
Section 9(b). Any Expenses actually and reasonably incurred by Indemnitee in
so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the

                                      4

<PAGE>

determination as to Indemnitee's entitlement to indemnification) and the
Company shall indemnify and hold Indemnitee harmless therefrom.

      Section 10. Presumptions and Effect of Certain Proceedings.

      (a) In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 9(a) of this Agreement, and the Company shall have
the burden of proof to overcome that presumption in connection with the making
of any determination contrary to that presumption.

      (b) The termination of any Proceeding by judgment, order, settlement,
conviction, a plea of nolo contendere or its equivalent, or an entry of an
order of probation prior to judgment, does not create a presumption that
Indemnitee did not meet the requisite standard of conduct described herein for
indemnification.

      Section 11. Remedies of Indemnitee.

      (a) If (i) a determination is made pursuant to Section 9 of this
Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8
of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 9(b) of this Agreement within 45 days
after receipt by the Company of the request for indemnification, (iv) payment
of indemnification is not made pursuant to Section 7 of this Agreement within
ten days after receipt by the Company of a written request therefor, or (v)
payment of indemnification is not made within ten days after a determination
has been made that Indemnitee is entitled to indemnification, Indemnitee shall
be entitled to an adjudication in an appropriate court located in the State of
Maryland, or in any other court of competent jurisdiction, of his entitlement
to such indemnification or advance of Expenses. Alternatively, Indemnitee, at
his option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the commercial Arbitration Rules of the American
Arbitration Association. Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on
which Indemnitee first has the right to commence such proceeding pursuant to
this Section 11(a); provided, however, that the foregoing clause shall not
apply to a proceeding brought by Indemnitee to enforce his rights under
Section 7 of this Agreement.

      (b) In any judicial proceeding or arbitration commenced pursuant to this
Section 11, the Company shall have the burden of proving that Indemnitee is
not entitled to indemnification or advance of Expenses, as the case may be.

      (c) If a determination shall have been made pursuant to Section 9(b) of
this Agreement that Indemnitee is entitled to indemnification, the Company
shall be bound by such determination in any judicial proceeding or arbitration
commenced pursuant to this Section 11, absent a misstatement by Indemnitee of
a material fact, or an omission of a material fact necessary to make
Indemnitee's statement not materially misleading, in connection with the
request for indemnification.

                                      5

<PAGE>

      (d) In the event that Indemnitee, pursuant to this Section 11, seeks a
judicial adjudication of or an award in arbitration to enforce his rights
under, or to recover damages for breach of, this Agreement, Indemnitee shall
be entitled to recover from the Company, and shall be indemnified by the
Company for, any and all Expenses actually and reasonably incurred by him in
such judicial adjudication or arbitration. If it shall be determined in such
judicial adjudication or arbitration that Indemnitee is entitled to receive
part but not all of the indemnification or advance of Expenses sought, the
Expenses incurred by Indemnitee in connection with such judicial adjudication
or arbitration shall be appropriately prorated.

      Section 12. Defense of the Underlying Proceeding.

      (a) Indemnitee shall notify the Company promptly upon being served with
or receiving any summons, citation, subpoena, complaint, indictment,
information, notice, request or other document relating to any Proceeding
which may result in the right to indemnification or the advance of Expenses
hereunder; provided, however, that the failure to give any such notice shall
not disqualify Indemnitee from the right, or otherwise affect in any manner
any right of Indemnitee, to indemnification or the advance of Expenses under
this Agreement unless the Company's ability to defend in such Proceeding or to
obtain proceeds under any insurance policy is materially and adversely
prejudiced thereby, and then only to the extent the Company is thereby
actually so prejudiced.

      (b) Subject to the provisions of the last sentence of this Section 12(b)
and of Section 12(c) below, the Company shall have the right to defend
Indemnitee in any Proceeding which may give rise to indemnification hereunder;
provided, however, that the Company shall notify Indemnitee of any such
decision to defend within 15 calendar days following receipt of notice of any
such Proceeding under Section 12(a) above. The Company shall not, without the
prior written consent of Indemnitee, which shall not be unreasonably withheld
or delayed, consent to the entry of any judgment against Indemnitee or enter
into any settlement or compromise which (i) includes an admission of fault of
Indemnitee or (ii) does not include, as an unconditional term thereof, the
full release of Indemnitee from all liability in respect of such Proceeding,
which release shall be in form and substance reasonably satisfactory to
Indemnitee. This Section 12(b) shall not apply to a Proceeding brought by
Indemnitee under Section 11 above or Section 18 below.

      (c) Notwithstanding the provisions of Section 12(b) above, if in a
Proceeding to which Indemnitee is a party by reason of Indemnitee's Corporate
Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel
approved by the Company, which approval shall not be unreasonably withheld,
that he may have separate defenses or counterclaims to assert with respect to
any issue which may not be consistent with other defendants in such
Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of
counsel approved by the Company, which approval shall not be unreasonably
withheld, that an actual or apparent conflict of interest or potential
conflict of interest exists between Indemnitee and the Company, or (iii) if
the Company fails to assume the defense of such Proceeding in a timely manner,
Indemnitee shall be entitled to be represented by separate legal counsel of
Indemnitee's choice, subject to the prior approval of the Company, which shall
not be unreasonably withheld, at the expense of the Company. In addition, if
the Company fails to comply with any of its obligations under this Agreement
or in the event that the Company or any

                                      6

<PAGE>

other person takes any action to declare this Agreement void or unenforceable,
or institutes any Proceeding to deny or to recover from Indemnitee the
benefits intended to be provided to Indemnitee hereunder, Indemnitee shall
have the right to retain counsel of Indemnitee's choice, subject to the prior
approval of the Company, which shall not be unreasonably withheld, at the
expense of the Company (subject to Section 11(d)), to represent Indemnitee in
connection with any such matter.

      Section 13. Non-Exclusivity; Survival of Rights; Subrogation; Insurance.

      (a) The rights of indemnification and advance of Expenses as provided by
this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may at any time be entitled under applicable law, the Declaration
of Trust or Bylaws of the Company, any agreement or a resolution of the
shareholders entitled to vote generally in the election of trustees or of the
Board of Trustees, or otherwise. No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his Corporate Status prior to such amendment, alteration or
repeal.

      (b) 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 Indemnitee, who shall execute all papers 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) The Company shall not be liable under this Agreement to make any
payment of amounts otherwise indemnifiable or payable or reimbursable as
Expenses hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or
otherwise.

      Section 14. Insurance. The Company will use its reasonable best efforts
to acquire trustees and officers liability insurance, on terms and conditions
deemed appropriate by the Board of Trustees of the Company, with the advice of
counsel, covering Indemnitee or any claim made against Indemnitee for service
as a trustee or officer of the Company and covering the Company for any
indemnification or advance of Expenses made by the Company to Indemnitee for
any claims made against Indemnitee for service as a trustee or officer of the
Company. Without in any way limiting any other obligation under this
Agreement, the Company shall indemnify Indemnitee for any payment by
Indemnitee arising out of the amount of any deductible or retention and the
amount of any excess of the aggregate of all judgments, penalties, fines,
settlements and reasonable Expenses actually and reasonably incurred by
Indemnitee in connection with a Proceeding over the coverage of any insurance
referred to in the previous sentence.

      Section 15. Indemnification for Expenses of a Witness. Notwithstanding
any other provision of this Agreement, to the extent that Indemnitee is or may
be, by reason of his Corporate Status, a witness in any Proceeding, whether
instituted by the Company or any other party, and to which Indemnitee is not a
party but in which the Indemnitee receives a subpoena to

                                      7

<PAGE>

testify, he shall be advanced all reasonable Expenses and indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith.

      Section 16. Duration of Agreement; Binding Effect.

      (a) This Agreement shall continue until and terminate ten years after
the date that Indemnitee's Corporate Status shall have ceased; provided, that
the rights of Indemnitee hereunder shall continue until the final termination
of any Proceeding then pending in respect of which Indemnitee is granted
rights of indemnification or advance of Expenses hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement
relating thereto.

      (b) The indemnification and advance of Expenses provided by, or granted
pursuant to, this Agreement shall be binding upon and be enforceable by the
parties hereto and their respective successors and assigns (including any
direct or indirect successor by purchase, merger, consolidation or otherwise
to all or substantially all of the business or assets of the Company), shall
continue as to an Indemnitee who has ceased to be a director, trustee,
officer, employee or agent of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
which such person is or was serving at the written request of the Company, and
shall inure to the benefit of Indemnitee and his spouse, assigns, heirs,
devisees, executors and administrators and other legal representatives.

      (c) The Company shall require and cause any successor (whether direct or
indirect by purchase, merger, consolidation or otherwise) to all,
substantially all or a substantial part, of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

      Section 17. Severability. If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion of
any section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby; and (b)
to the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested thereby.

      Section 18. Exception to Right of Indemnification or Advance of
Expenses. Notwithstanding any other provision of this Agreement, Indemnitee
shall not be entitled to indemnification or advance of Expenses under this
Agreement with respect to any Proceeding brought by Indemnitee, unless (a) the
Proceeding is brought to enforce indemnification under this Agreement, and
then only to the extent in accordance with and as authorized by Sections 8 and
11 of this Agreement, or (b) the Company's Bylaws, as amended, the Declaration
of Trust, a resolution of the shareholders entitled to vote generally in the
election of trustees or of the Board

                                      8

<PAGE>

of Trustees or an agreement approved by the Board of Trustees to which the
Company is a party expressly provide otherwise.

      Section 19. Identical Counterparts. This Agreement may be executed in
one or more counterparts, each of which shall for all purposes be deemed to be
an original but all of which together shall constitute one and the same
Agreement. One such counterpart signed by the party against whom
enforceability is sought shall be sufficient to evidence the existence of this
Agreement.

      Section 20. Headings. The headings of the paragraphs of this Agreement
are inserted for convenience only and shall not be deemed to constitute part
of this Agreement or to affect the construction thereof.

      Section 21. Modification and Waiver. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by
both of the parties hereto. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

      Section 22. Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand and receipted for by the party to whom
said notice or other communication shall have been directed, or (ii) mailed by
certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

      (a) If to Indemnitee, to: The address set forth on the signature page
hereto.

      (b) If to the Company to:

                  Provident Senior Living Trust
                  600 College Road East, Suite 3400
                  Princeton, NJ  08540
                  Attn:  General Counsel

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

      Section 23. Governing Law. The parties agree that this Agreement shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Maryland, without regard to its conflicts of laws rules.

      Section 24. Miscellaneous. Use of the masculine pronoun shall be deemed
to include usage of the feminine pronoun where appropriate.

                           [SIGNATURE PAGE FOLLOWS]

                                      9

<PAGE>

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

ATTEST:                             PROVIDENT SENIOR LIVING TRUST

                                    By:   ------------------------- (SEAL)
-------------------------           Name:
                                    Title:

WITNESS:                            INDEMNITEE

-------------------------            ------------------------------------
                                     Name:
                                     Address:

                                      10

<PAGE>

                                 ATTACHMENT A

      A "Change in Control" shall mean the occurrence of any one of the
following events:

      (a) An acquisition (other than directly from the Company) of any Common
Shares or other voting securities of the Company by any "Person" (for purposes
of this Section only, as the term "person" is used for purposes of Section
13(d) or 14(d) of the Exchange Act), immediately after which such Person has
"Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of twenty percent (20%) or more of either (i) the then
outstanding Common Shares or (ii) the combined voting power of the Company's
then outstanding voting securities entitled to vote for the election of
trustees or directors (the "Voting Securities"); provided, however, in
determining whether a Change in Control has occurred, Common Shares or Voting
Securities which are acquired in a "Non-Control Acquisition" (as hereinafter
defined) shall not constitute an acquisition which would cause a Change in
Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an
employee benefit plan (or a trust forming a part thereof) maintained by (A)
the Company or (B) any corporation or other Person of which a majority of its
voting power or its voting equity securities or equity interest is owned,
directly or indirectly, by the Company (for purposes of this definition, a
"Related Entity"), (ii) the Company or any Related Entity, or (iii) any Person
in connection with a "Non-Control Transaction" (as hereinafter defined); or

      (b) The individuals who, on the Effective Date, are members of the Board
of Trustees of the Company (the "Incumbent Board"), (i) cease for any reason
to constitute at least a majority of the members of the Board of Trustees of
the Company, or (ii) following a Merger (as hereinafter defined), do not
constitute at least a majority of the Board of Trustees of (x) the Surviving
Corporation (as hereinafter defined), if fifty percent (50%) or more of the
combined voting power of the then outstanding voting securities of the
Surviving Corporation is not Beneficially Owned, directly or indirectly by a
Parent Corporation, or (y) if there is one or more Parent Corporations, the
ultimate Parent Corporation (as hereinafter defined); provided, however, that
if the election, or nomination for election by the Company's common
shareholders, of any new trustee or director was approved by a vote of at
least a majority of the Incumbent Board, such new trustee or director shall,
for purposes of this Plan, be considered as a member of the Incumbent Board;
provided, further, however, that no individual shall be considered a member of
the Incumbent Board if such individual initially assumed office as a result of
an actual or threatened solicitation of proxies or consents by or on behalf of
a Person other than the Board of Trustees of the Company (a "Proxy Contest"),
including by reason of any agreement intended to avoid or settle any Proxy
Contest; or

      (c) The consummation of:

         (i) A merger, consolidation or reorganization with or into the
Company or a direct or indirect subsidiary of the Company or in which
securities of the Company are issued (a "Merger"), unless the Merger is a
"Non-Control Transaction." A "Non-Control Transaction" shall mean:

<PAGE>

                  (A) the shareholders of the Company immediately before such
Merger own directly or indirectly immediately following the Merger at least
fifty percent (50%) of the outstanding common shares and the combined voting
power of the outstanding voting securities of (x) the corporation or other
legal entity resulting from such Merger (the "Surviving Corporation"), if
fifty percent (50%) or more of the combined voting power of the then
outstanding voting securities of the Surviving Corporation is not Beneficially
Owned, directly or indirectly by another corporation or other legal entity (a
"Parent Corporation"), or (y) if there is one or more Parent Corporations, the
ultimate Parent Corporation;

                  (B) the individuals who were members of the Incumbent Board
immediately prior to the execution of the agreement providing for the Merger,
constitute at least a majority of the members of the Board of Trustees of, (x)
the Surviving Corporation, if fifty percent (50%) or more of the combined
voting power of the then outstanding voting securities of the Surviving
Corporation is not Beneficially Owned, directly or indirectly by a Parent
Corporation, or (y) if there is one or more Parent Corporations, the ultimate
Parent Corporation; and

                  (C) no Person other than (1) the Company or another
corporation or other legal entity that is a party to the agreement of Merger,
(2) any Related Entity, or (3) any employee benefit plan (or any trust forming
a part thereof) that, immediately prior to the Merger, was maintained by the
Company or any Related Entity, or (4) any Person who, immediately prior to the
Merger had Beneficial Ownership of twenty percent (20%) or more of the then
outstanding Common Shares or Voting Securities, has Beneficial Ownership,
directly or indirectly, of twenty percent (20%) or more of the combined voting
power of the outstanding voting securities or common shares of (x) the
Surviving Corporation, if fifty percent (50%) or more of the combined voting
power of the then outstanding voting securities of the Surviving Corporation
is not Beneficially Owned, directly or indirectly by a Parent Corporation, or
(y) if there is one or more Parent Corporations, the ultimate Parent
Corporation.

         (ii) A complete liquidation or dissolution of the Company; or

         (iii) The sale or other disposition of all or substantially all of
the assets of the Company and its subsidiaries taken as a whole to any Person
(other than a transfer to a Related Entity or under conditions that would
constitute a Non-Control Transaction with the disposition of assets being
regarded as a Merger for this purpose or the distribution to the Company's
shareholders of the stock of a Related Entity or any other assets).

Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any Person (the "Subject Person") acquired Beneficial
Ownership of more than the permitted amount of the then outstanding Common
Shares or Voting Securities as a result of the acquisition of Common Shares or
Voting Securities by the Company which, by reducing the number of Common
Shares or Voting Securities then outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Persons; provided, that if
a Change in Control would occur (but for the operation of this sentence) as a
result of the acquisition of Common Shares or Voting Securities by the
Company, and after such share acquisition by the Company, the Subject Person
becomes the Beneficial Owner of any additional Common Shares

                                      2

<PAGE>

or Voting Securities which increases the percentage of the then outstanding
Common Shares or Voting Securities Beneficially Owned by the Subject Person,
then a Change in Control shall occur.

Notwithstanding the foregoing, there shall not be a Change in Control if, in
advance of such event, the Executive agrees in writing that such event shall
not constitute a Change in Control for purposes of this Agreement.

                                      3

<PAGE>

                                 ATTACHMENT B

                FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

The Board of Trustees of Provident Senior Living Trust

Re:  Undertaking to Repay Expenses Advanced

Ladies and Gentlemen:

      This undertaking is being provided pursuant to that certain
Indemnification Agreement dated as of the 14th day of December, 2004, by and
between Provident Senior Living Trust (the "Company") and the undersigned
Indemnitee (the "Indemnification Agreement"), pursuant to which I am entitled
to advance 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. I hereby affirm
that at all times, insofar as I was involved as [a trustee] [an officer] of
the Company, in any of the facts or events giving rise to the Proceeding, I
(1) acted in good faith and honestly, (2) did not receive any improper
personal benefit in money, property or services and (3) in the case of any
criminal proceeding, had no reasonable cause to believe that any act or
omission by me was unlawful.

      In consideration of the advance of Expenses by the Company for
reasonable attorneys' fees and related expenses incurred by me in connection
with the Proceeding (the "Advanced Expenses"), I hereby agree that if, in
connection with the Proceeding, it is established that (1) an act or omission
by me was material to the matter giving rise to the Proceeding and (a) was
committed in bad faith or (b) was the result of active and deliberate
dishonesty or (2) I actually received an improper personal benefit in money,
property or services or (3) in the case of any criminal proceeding, I had
reasonable cause to believe that the act or omission was unlawful, then I
shall promptly reimburse the portion of the Advanced Expenses relating to the
claims, issues or matters in the Proceeding as to which the foregoing findings
have been established and which have not been successfully resolved as
described in Section 7 of the Indemnification Agreement. To the extent that
Advanced Expenses do not relate to a specific claim, issue or matter in the
Proceeding, I agree that such Expenses shall be allocated on a reasonable and
proportionate basis.

      IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on
this ___ day of ____________________, 200__.

WITNESS:

____________________________              _____________________________(SEAL)

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