Document:

Exhibit
10.1

 

SETTLEMENT AGREEMENT & RELEASE

 

This
Settlement Agreement & Release (“Agreement”) is made as of
11:59 p.m. EST on June 30, 2009 (the “Effective Date”), by and
among UTStarcom, Inc., a Delaware corporation (“UTS Inc.”),
Personal Communications Devices, LLC, a Delaware limited liability company (“PCD
LLC”), and Personal Communications Devices Holdings, LLC, a Delaware
limited liability company (“PCD Holdings LLC”) (each of the foregoing, a
“Party,” and collectively, the “Parties”).

 

RECITALS

 

WHEREAS,
UTStarcom Personal Communications LLC, a Delaware limited liability company,
UTS Inc., PCD LLC, and PCD Holdings LLC are parties to that certain Merger
Agreement dated June 30, 2008 (the “Merger Agreement”).  Capitalized terms not defined herein shall
have the meanings ascribed to them in the Merger Agreement;

 

WHEREAS,
in connection with the Merger Agreement, PCD LLC and UTS Inc. entered into a
Supplier Agreement dated July 1, 2008 (the “Supplier Agreement”);

 

WHEREAS,
pursuant to the Supplier Agreement, UTS Inc. has sold and delivered certain
Products (as defined therein) to PCD LLC;

 

WHEREAS,
there is a dispute between PCD LLC and UTS Inc. regarding certain units of the
Products (the Subject Units, defined below);

 

WHEREAS,
PCD LLC had delivered certain of the Subject Units to PCD LLC’s customer
AT&T;

 

WHEREAS,
PCD LLC has withheld certain payments (the Withheld Amount, defined below),
under the Supplier Agreement;

 

WHEREAS,
Section 1.7 of the Merger Agreement requires PCD Holdings LLC to pay to
UTS Inc. in accordance with the provisions thereof, additional consideration
(the “Earnout Payment”) based upon the Audited EBITDA for the period
commencing January 1, 2008 and ending on December 31, 2010;

 

WHEREAS,
Section 5.17 of the Merger Agreement required PCD Holdings LLC to offer
UTS Inc. the opportunity to purchase, at the Closing, Class A Units of PCD
Holdings LLC for an aggregate purchase price of $1,600,000, subject to the
terms and conditions of the Buyer LLC Agreement and any related investment documents
(the “Equity Investment Provision”);

 

WHEREAS,
Pursuant to the Equity Investment Provision, at the Closing, UTS Inc. purchased
2,199,214 Class A Units of PCD Holdings LLC for an aggregate purchase
price of $1,600,000 (the “Purchased Class A Units”), which
Purchased Class A Units are uncertificated;

 

WHEREAS,
UTS Inc. is willing to relinquish any and all of its rights to receive the
Earnout Payments and its other rights provided for under Section 1.7 of
the Merger Agreement;

 

 

WHEREAS,
UTS Inc. is willing to relinquish any and all of its rights to purchase any
equity interest in PCD Holdings, LLC pursuant to the Merger Agreement and
agreements entered into in connection with the Merger Agreement.

 

WHEREAS,
UTS Inc. desires to sell to PCD Holdings LLC, at PCD Holdings LLC’s option, and
PCD Holdings LLC desires to have the option to repurchase from UTS Inc., the
Purchased Class A Units for an aggregate purchase price of $1,600,000; and

 

WHEREAS,
the Parties desire to settle all claims PCD LLC and/or PCD Holdings LLC may
have against UTS Inc. relating to Subject Units, and all claims UTS Inc. may
have against PCD LLC and/or PCD Holdings LLC for the Withheld Amount, the
Earnout Payment, to purchase an equity interest in PCD Holdings LLC or
otherwise relating to the Subject Units, all pursuant to the terms and
conditions set forth in this Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the respective covenants, representations,
warranties and agreements set forth herein and for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties
hereby agree as follows:

 

1.     Definitions.

1.1           “AT&T” means the
entity referred to as AT&T Mobility LLC and/or any of its affiliates which
have received Subject Units.

1.2           “AT&T Claim” has
the meaning provided in Section 4 (Payment of AT&T Claim).

1.3           “Governmental Authority”
means any government or political subdivision, whether federal, state, local or
foreign, or any agency or instrumentality of any such government or political
subdivision, or any federal, state, local or foreign court or arbitrator.

1.4           “Inventory Products”
has the meaning provided in Section 7 (Order of Remaining Inventory
Products).

1.5           “Law” means any law,
statute, code, ordinance, regulation or rule of any Governmental
Authority.

1.6           “Products” means
Products as defined under the Supplier Agreement.

1.7           “Released Matters”
means the UTS Released Matters and the PCD Released Matters.

1.8           “Released Parties”
means the UTS Released Parties and the PCD Released Parties.

1.9           “Releasing Parties”
means the UTS Releasing Parties and the PCD Releasing Parties.

1.10         “Repurchase Closing Date”
shall have the meaning set forth in Section 11.

1.11         “Repurchase Notice”
shall have the meaning set forth in Section 11.

1.12         “Repurchase Period”
shall have the meaning set forth in Section 11.

1.13         “Subject Units” means
those units of the Products identified in Exhibit A.

1.14         “Transfer” shall have
the meaning set forth in Section 11.

 

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1.15         “Withheld Amount” has
the meaning provided in Section 5 (Payment of Amounts under the Supplier
Agreement).

 

2.     Release of Certain PCD
Claims.

 

2.1   By this Agreement, PCD LLC
and PCD Holdings LLC, each on behalf of itself, and its present and former
directors, officers, employees, attorneys, agents, customers, subsidiaries,
licensees, representatives, and its respective successors, affiliates and
assigns (“PCD Releasing Parties”), hereby fully and unconditionally
release and forever discharge UTS Inc., and its present and former directors,
officers, employees, attorneys, agents, representatives, and its respective
successors, affiliates and assigns (“UTS Released Parties”) from and
against any and all indemnity obligations, claims, contentions, debts,
liabilities, demands, promises, agreements, costs, expenses (including but not
limited to attorneys’ fees), damages, suits, legal proceedings, mediations,
arbitrations, losses, judgments, settlements, actions or causes of action, or
the like (collectively “Actions”) of whatever kind or nature, whether
now known or unknown, and whether based on contract, breach of warranty,
indemnity, tort, statutory or other legal or equitable theory of recovery,
which the PCD Releasing Parties have, had, or may ever claim to have against
the UTS Released Parties, which relate to, arise from, or are connected to any
activity described, based on, arising out of, or in connection with the
following (the following, the “PCD Released Matters”):

 

(a)   Any breach of any
representation or warranty (except as set forth below) (i) in the Supplier
Agreement that relates to or arises from a Subject Unit, or (ii) in the
Merger Agreement that, pursuant to Section 9.1(b) of the Merger
Agreement, has an Expiration Date of the first anniversary of the Closing Date;

 

(b)   Any right or obligation
arising under, including any right to indemnification, or breach of an
indemnification obligation in the Supplier Agreement that relates to or arises
from a Subject Unit (except as set forth below);

 

(c)   Any other right or
obligation included in or arising under the Supplier Agreement that relates to
or arises from a Subject Unit, or that arises from or is related to any other
Action AT&T may assert with respect to the Subject Units (except as set
forth below); and

 

(d)   Any other Action arising
from or related to a Subject Unit (except as set forth below).

 

Notwithstanding the
foregoing, this Agreement and the release terms set forth above shall not
include and shall have no effect on any of the continuing indemnity or other
obligations of UTS, Inc. under the Supplier Agreement for any and all
Products supplied to PCD LLC pursuant thereto that would otherwise be covered
under the terms thereof, with the specific and sole exception of the Subject
Units.  As to the Subject Units, UTS Inc.
shall retain the continuing obligations set forth only in Section 22
(Indemnification by Supplier) relating to any and all actions or claims that
any product supplied by UTS Inc. infringes any United States or foreign patent,
copyright or intellectual property right and Section 32(J) relating
to obligations that survive termination. 
Except as expressly set forth above, this Agreement and the release
terms set forth above shall not include and shall have 

 

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no effect on any of the
continuing indemnity or other obligations of UTS Inc. under the Merger
Agreement and shall not include and shall not effect or cause the release of
any Excluded Claims.

 

2.2   In connection with the
above, PCD LLC and PCD Holdings LLC each acknowledges that it is aware that,
after executing this Agreement, they or their attorneys or agents may discover
claims or facts in addition to or different from those which they now know or
believe to exist with respect to the subject matter of this Agreement or the
PCD Released Matters, but that it is PCD LLC’s and PCD Holdings LLC’s intention
to fully, finally and forever settle and release all of the PCD Released
Matters, and to finally and forever settle and release any other Actions, known
or unknown, suspected or unsuspected, which now exist, may exist, or heretofore
may have existed against the UTS Released Parties relating to the PCD Released
Matters.  In furtherance of this
intention, the release herein given shall be and remain in effect as a full and
complete release of the PCD Released Matters notwithstanding the discovery or
existence of any such additional or different claim(s) or fact(s) the
PCD Releasing Parties may assert with respect to the PCD Released Matters.  In connection with the foregoing, the PCD
Releasing Parties hereby waive all rights under Section 1542 of Civil Code
of California, which the PCD Releasing Parties acknowledge to have read and
understood and which provides as follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.

 

The
PCD Releasing Parties also hereby waive all rights that they may have under or
pursuant to any other statute, legal decision or common law principal of
similar, comparable or equivalent effect as §1542 of the California Civil Code.

 

3.     Release of All UTS Inc.
Claims.

 

3.1   By this Agreement, UTS Inc.,
on behalf of itself, and its present and former directors, officers, employees,
attorneys, agents, customers, subsidiaries, licensees, representatives, and its
respective successors affiliates and assigns (“UTS Releasing Parties”),
hereby fully and unconditionally releases and forever discharges PCD LLC and
PCD Holdings LLC, and their present and former directors, officers, members,
managers, employees, attorneys, agents, representatives, and their respective
successors affiliates and assigns (“PCD Released Parties”) from and
against any and all Actions (as defined above) of whatever kind or nature,
whether now known or unknown, and whether based on contract, breach of
warranty, indemnity, tort, statutory or other legal, equitable theory of
recovery, which the UTS Releasing Parties have, had, or may ever claim to have
against the PCD Released Parties, which relate to, arise from, or are connected
to any activity described, based on, arising out of, or in connection with the
following (the following, the “UTS Released Matters”):

 

(a)   Any breach of any
representation or warranty (i) in the Supplier Agreement that relates to
or arises from a Subject Unit, or (ii) in the Merger Agreement that, 

 

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pursuant
to Section 9.1(b) of the Merger Agreement, has an Expiration Date of
the first anniversary of the Closing Date;

 

(b)   Any right or obligation
arising under, including any right to indemnification, or breach of an
indemnification obligation in the Supplier Agreement that relates to or arises
from a Subject Unit;

 

(c)   Any other right or
obligation included in or arising under the Supplier Agreement that relates to
or arises from a Subject Unit, or that arises from or is related to any other
Action AT&T may assert with respect to the Subject Units;

 

(d)   Any other Action arising
from or related to a Subject Unit;

 

(e)   Any right to receive the
Earnout Payment or otherwise arising under Section 1.7 of the Merger
Agreement;

 

(f)    Any and all rights to
purchase any equity interest in PCD Holdings, LLC pursuant to the Merger
Agreement or agreements entered into in connection with the Merger Agreement;
and

 

(g)   the Withheld Amount.

 

3.2   In connection with the
above, UTS Inc. acknowledges that it is aware that, after executing this
Agreement, it or its attorneys or agents may discover claims or facts in
addition to or different from those which they now know or believe to exist
with respect to the subject matter of this Agreement or the UTS Released
Matters, but that it is UTS Inc.’s intention to fully, finally and forever
settle and release all of the UTS Released Matters, and to finally and forever
settle and release any other Actions, known or unknown, suspected or
unsuspected, which now exist, may exist, or heretofore may have existed against
the PCD Released Parties relating to the UTS Released Matters.  In furtherance of this intention, the release
herein given shall be and remain in effect as a full and complete release of the
UTS Released Matters, notwithstanding the discovery or existence of any such
additional or different claim(s) or fact(s) UTS Releasing Parties may
assert with respect to the UTS Released Matters.  In connection with the foregoing, the UTS
Releasing Parties hereby waive all rights under Section 1542 of Civil Code
of California, which the UTS Releasing Parties acknowledge to have read and
understood and which provides as follows:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR

 

The
UTS Releasing Parties also hereby waive all rights that they may have under or
pursuant to any other statute, legal decision or common law principal of
similar, comparable or equivalent effect as §1542 of the California Civil Code.

 

5

 

4.     Payment of AT&T Claim.  In consideration of the release and
settlement in this Agreement and PCD LLC’s conditional orders of Inventory
Products pursuant to Section 7 (Order of Remaining Inventory Products), on
or before July 15, 2009 and August 15, 2009, UTS Inc. shall pay by
wire transfer in immediately available funds to an account specified by PCD
LLC, in two (2) equal installments, the lesser of the following (the “AT&T
Claim”):  (a) Eleven Million
Ninety-Six Thousand Forty-Five U.S. Dollars ($11,096,045.00) and (b) the
amount of AT&T’s warranty claim arising from the Subject Units.  The obligation to pay the AT&T Claim
shall be contingent upon UTS Inc. receiving proof of PCD LLC’s payment to
AT&T.  PCD LLC represents that PCD
LLC has used commercially reasonable efforts to minimize the AT&T Claim.

 

5.     Payment of Amounts under the
Supplier Agreement. In consideration of the release and settlement in
this Agreement, PCD LLC shall pay, upon the Effective Date by wire transfer in
immediately available funds to an account specified by UTS Inc., Ten Million
Four Hundred Nine Thousand Seven Hundred Fifty-Eight and no/100 U.S. Dollars
($10,409,758) (the “Withheld Amount”), which is calculated by reducing
the gross amount of Eleven Million Six Hundred Seventy-Three Thousand One
Hundred Ninety and no/100 U.S. Dollars ($11,673,190.00) by the following
figures: (1) Eight Hundred Fourteen Thousand One Hundred Sixty-Seven U.S.
Dollars ($814,167) for 4,449 returned Subject Units at $183.00 and (2) Four
Hundred Forty-Nine Thousand Two Hundred Sixty-Five U.S. Dollars ($449,265) for
2,455 returned Subject Units at $183.00. 
The Withheld Amount is not payable or creditable against any other
obligation now or in the future of PCD LLC or PCD Holdings LLC other than such
previously adjusted invoiced amounts. 
For avoidance of doubt, the Withheld Amount shall not be creditable
against the order for the Inventory Products (defined below).  The Withheld Amount does not constitute all
amounts owed by PCD LLC to UTS Inc. under outstanding invoices and other
arrangements, however, payment of the Withheld Amount shall constitute payment
in respect of the outstanding invoices constituting the Withheld Amount.

 

6.     Return of Subject Units.  PCD LLC has returned 4,449 units of the
Subject Units to UTS Inc., and PCD LLC shall return the remaining 2,455 units
of the Subject Units not yet returned to UTS Inc. and identified by PCD LLC as
defective promptly following the Effective Date.  UTS Inc. shall accept the return of all such
Subject Units at a cost of $183.00 (and PCD LLC acknowledges and agrees that
UTS Inc., through the calculation of the Withheld Amount pursuant to Section 5
above, has provided PCD LLC the appropriate credit/payment for all such returns
of Subject Units), refurbish said Subject Units and PCD LLC shall repurchase said
refurbished Subject Units at a cost of $120.00. 
Other than as expressly set forth in this Section 6 (Return of
Subject Units), the repurchase of refurbished Subject Units is subject to the
terms and conditions of the Supplier Agreement.

 

UTS
Inc. agrees to accept for return under the terms and conditions of the Supplier
Agreement any defective returns of refurbished Subject Units after repurchase
and Inventory Products after purchase pursuant to this Agreement.

 

7.     Order of Remaining Inventory
Products.  PCD LLC
hereby agrees to order UTS Inc.’s remaining inventory of Products specified in Exhibit B
(“Inventory Products”), for a negotiated 

 

6

 

commercially
reasonable price, subject to fulfillment of each of the following conditions
consistent with past practice:  (1) the
Inventory Products receive carrier approval; (2) UTS Inc. provides all
reasonable and necessary engineering and other support to secure carrier
approval; (3) UTS Inc. agrees to provide service parts and support going
forward for all Inventory Products; and (4) the Inventory Products meet
all quality control requirements.  The
order for Inventory Products shall be made only after fulfillment of and
agreement to the foregoing conditions and only in the same amount in and after
PCD receives a purchase order(s) from the carrier.  PCD LLC shall use commercially reasonable
good faith efforts to obtain purchase order(s) from one or more carriers
relating to the Inventory Products.  PCD
LLC shall pay in full for the Inventory Products pursuant to the terms of, and
on the date for payment set forth in the Supplier Agreement.  Notwithstanding anything to the contrary
herein or in the Supplier Agreement, such order is non-cancelable.  Other than as expressly set forth in this Section 7
(Order of Remaining Inventory Products), the order for the Inventory Products
is subject to the terms and conditions of the Supplier Agreement.  PCD LLC shall provide a written purchase
order for such order of Inventory Products promptly following its receipt of a
purchase order from a carrier.

 

8.     Warranty Against Assignment.  The Parties, on behalf of their successors
and assigns, hereby warrant and covenant that they have not transferred or
assigned and prior to the Effective Date of this Agreement, and will not
transfer or assign to any third party (except under Section 18
(Assignment)), any Actions or rights to bring Actions that they have or may
have against any of the Released Parties or Releasing Parties, arising out of,
or in connection with anything whatsoever relating to the Released Matters.

 

9.     Waiver of Earnout Payments.  By this Agreement, UTS Inc., on behalf of
itself and the UTS Releasing Parties, hereby waives all of its rights contained
in Sections 1.7 of the Merger Agreement including, without limitation, the
right to receive the Earnout Payment, and acknowledges and agrees that it and
they shall not have any further rights thereunder or with respect thereto.

 

10.   Waiver of Equity Purchase
Rights.  By this Agreement, UTS Inc., on
behalf of itself and the UTS Releasing Parties, hereby waives all of its rights
to purchase any equity interest in PCD Holdings, LLC pursuant to the Merger
Agreement or agreements entered into in connection with the Merger Agreement,
and acknowledges and agrees that it shall not have any further rights with
respect thereto.

 

11.   Option to Repurchase the
Purchased Class A Units.

 

(a)           At any time during the
period beginning on the Effective Date and ending at 11:59pm PDT on the ninetieth
(90th) day thereafter (the “Repurchase Period”), PCD Holdings LLC or its
designee may by delivery of a written notice to UTS Inc. in accordance with Section 11.5
of the Merger Agreement (the “Repurchase Notice”), at its option,
repurchase from UTS Inc., and UTS Inc. will, at the request of PCD Holdings LLC
or its designee, sell, convey, transfer, assign and deliver to PCD Holdings LLC
or its designee, all right, title and interest in and to the Purchased Class A
Units free and clear of any liens, claims, pledges, security interests, equity
interests or encumbrances (other than those imposed under applicable securities
laws and as set forth in 

 

7

 

agreements with PCD Holdings
LLC), for an aggregate repurchase price of One Million Six Hundred Thousand and
no/100 ($1,600,000.00).

 

(b)           The closing of the
repurchase of the Purchased Class A Units (the “Repurchase Closing Date”)
shall be held not earlier than five (5) days nor later than thirty (30)
days after delivery of the Repurchase Notice. 
Upon delivery by PCD Holdings LLC or its designee of the repurchase
price for the Purchased Class A Units, UTS Inc. shall deliver to PCD
Holdings LLC or its designee an executed Assignment Separate from Certificate
in the form attached hereto as Exhibit C, and all of the Purchased Class A
Units shall be deemed to be transferred to the PCD Holdings LLC or its
designee.

 

(c)           UTS Inc. may not sell,
assign, pledge, encumber or otherwise transfer (“Transfer”) during the
Repurchase Period and/or subsequent to receiving a Repurchase Notice, any
interest in any of the Purchased Class A Units, either voluntarily or
involuntarily or by operation of law or otherwise.

 

(d)           In the event of any Transfer
of Purchased Class A Units in breach of this Agreement, commencing
immediately upon the date of such attempted Transfer (a) such Transfer
shall be void and of no effect, (b) no dividend of any kind or any
distribution pursuant to any liquidation, redemption or otherwise shall be paid
by PCD Holdings LLC to the purported transferee in respect of the Purchased Class A
Units (all such rights to payment to UTS Inc. and/or the purported transferee
being deemed waived), (c) the voting rights of the Purchased Class A
Units, if any, shall be suspended during the continuation of any such breach,
and (d) neither UTS Inc. nor the purported transferee shall be entitled to
exercise any rights with respect to such Purchased Class A Units until
such Transfer in breach of this Agreement has been rescinded.

 

(e)           UTS Inc. acknowledges that
in the event that UTS Inc. fails to execute or cause to be executed all such
agreements and documents as may be necessary under this Agreement, or otherwise
to enable all of the Purchased Class A Units to be transferred in accordance
with this Agreement, the Chief Executive Officer and each other officer of PCD
Holdings LLC or the designee of PCD Holdings LLC may execute and deliver all
such agreements and documents exclusively as may be necessary to permit such
transfer to be completed exclusively as provided in this Agreement and
reflected on the books of PCD Holdings LLC (and for such purposes UTS Inc.
irrevocably constitutes and appoints the Chief Executive Officer and each other
officer of PCD Holdings LLC or its designee as the true and lawful attorney for
UTS Inc. with full power of substitution in the name of and on behalf of UTS
Inc., with no restriction or limitation in that regard).  This power of attorney is coupled with an interest
and is therefore irrevocable. This power of attorney shall not be revoked or
terminated by any act or thing.

 

(f)            Upon any share split,
reverse share split, recombination of shares or other similar reorganization of
the capital structure of PCD Holdings LLC, the repurchase price otherwise payable
to UTS Inc. upon the repurchase of the Purchased Class A Units hereunder
shall be proportionally adjusted to reflect such reorganization.

 

8

 

12.           Release
of Escrow.  The Parties shall,
concurrent with the execution of this Agreement, execute and deliver to
JPMorgan Chase Bank, National Association (the “Escrow Agent”), written
instructions to release to UTS Inc. the sum of Ten Million and no/100 Dollars
($10,000,000), together with earned interest on such amount, from the Indemnity
Escrow Account, pursuant that certain Escrow Agreement entered into among the
Escrow Agent, UTS Inc. and PCD Holdings LLC dated as of July 1, 2008.

 

13.           Representations
and Warranties.

 

(a)           Each
of the Parties hereby represents, as of the date hereof and as of the
Repurchase Closing Date, to the other Parties hereto that (i) it has duly
executed and delivered this Agreement (including any Exhibits hereto), (ii) all
required consents or approvals for such execution and delivery have been
obtained, and (iii) it has all requisite corporate or similar applicable
right, power, legal capacity and authority to enter into and perform this
Agreement (including any Exhibits hereto), as applicable.

 

(b)           UTS
Inc. hereby represents and warrants to PCD Holdings LLC, as of the date hereof
and as of the Repurchase Closing Date, that (i) UTS Inc. is the sole
beneficial and record holder of the Purchased Class A Units and (ii) UTS
Inc. has good and marketable title to the Purchased Class A Units, free of
any liens, claims, pledges, security interests, equity interests or other
encumbrances, other than those imposed under applicable securities laws and as
set forth in agreements with PCD Holdings LLC.

 

(c)           The
representations and warranties contained in Sections 13(a) and (b) shall
be true and correct as of the Repurchase Closing Date, and each Party shall
deliver a certificate, dated as of the Repurchase Closing Date, to such effect.

 

14.           Compromise
of Disputed Claims.  This Agreement
is a compromise of disputed claims and does not in any way constitute an
admission by any Party of any liability or responsibility, past, present or
future, for the Released Matters.

 

15.           Entire
Agreement; Modification.  This
Agreement, together with the Supplier Agreement and the Merger Agreement,
contains the entire agreement between the Parties relating to the subject
matter contained herein.  All prior or
contemporaneous agreements, written or oral, between the Parties regarding the
subject matter hereof are superseded by this Agreement (except those agreements
memorialized in the Supplier Agreement and the Merger Agreement).  This Agreement may not be modified except by
written document signed by an authorized representative of each Party.

 

16.           Force
Majeure.  No Party will be liable for
any failure to perform any obligation under this Agreement (other than
obligations to make payments), or for delay in such performance, to the extent
such failure to perform or delay is caused by fire, storm, earthquake,
explosion, war, acts of a public enemy, labor disputes, acts of God and acts of
any government or any agency thereof, or any similar event beyond its
reasonable control that makes such performance commercially impractical.  

 

9

 

Any suspension
of performance by reason of this clause will be limited to the period during
which the cause of suspension exists.

 

17.           Waiver.  No term of this Agreement shall be considered
waived and no breach excused by any Party unless made in writing.  No consent, waiver, or excuse by any Party,
express or implied, shall constitute a subsequent consent, waiver or excuse.

 

18.           Assignment.  This Agreement shall inure to the benefit of and
shall be binding upon the respective successors and assigns, if any, of the
Parties in its entirety. This Agreement may not be assigned by any Party
without the prior written consent of the other Parties; provided,
however, that this Agreement shall be automatically assigned in
connection with a merger, reorganization, change of control, or sale of all or
substantially all of the assets of a Party except that nothing in this section
shall be construed to permit any assignment which would be unauthorized or void
pursuant to any other part of this Agreement.

 

19.           Nondisclosure
Obligation.  The Parties will, and
will cause each of their Affiliates and representatives to, maintain the
confidentiality of this Agreement and will not, and will cause each of their
Affiliates not to, issue or cause the publication of any press release or other
public announcement with respect to this Agreement or the transactions
contemplated hereby without the prior written consent of the other Parties
hereto; provided, however, that a party may,
without the prior consent of the other parties hereto, issue or cause
publication of any such press release or public announcement to the extent that
such party reasonably determines, after consultation with outside legal
counsel, such action to be required by Law or by the rules of any
applicable self-regulatory organization, in which event such party will use its
commercially reasonable efforts to allow the other parties hereto reasonable
time to comment on such press release or public announcement in advance of its
issuance.

 

20.           Governing
Law and Dispute Resolution.  Any
controversy or claim arising out of or relating to this Agreement, or the
breach thereof, shall be governed, construed and interpreted in accordance with
the internal laws of the State of New York without application of conflict of
laws principles.  This Agreement shall
not be governed by the United Nations Convention on the International Sale of
Goods.  All disputes, claims, or
controversies arising out of or relating to this Agreement or any other
document delivered pursuant hereto, the transactions contemplated hereby, or
the negotiation, validity or performance hereof that are not resolved by mutual
agreement shall be resolved in accordance with the procedures set forth in Section 11.6
(Dispute Resolution) of the Merger Agreement.

 

21.           Severability.  If any provision of this Agreement is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired.

 

22.           Headings.  The headings of the sections of this
Agreement are for reference only and do not control the interpretation of any
term or condition of this Agreement.

 

10

 

23.           Representation
by Counsel.  Each of the Parties
hereto acknowledges that they have been represented by independent counsel of
their choice throughout all negotiations that preceded the  Agreement, and this Agreement has been
executed with the consent and on the advice of such independent legal counsel.

 

24.           Implementation
of Settlement.  The Parties hereby
agree to use their best efforts and good faith in carrying out all of the terms
of this Agreement. Each of the Parties hereby agrees and authorizes its
respective counsel to execute any additional documents and take any similar
procedural actions which reasonably may be required in order to consummate this
Agreement or otherwise to fulfill the intent of the Parties hereunder.

 

25.           Authority
to Execute Agreement.  The Parties
hereto warrant and guarantee that each person whose signature appears hereon
has been duly authorized and has full authority to execute this Agreement on
behalf of the person, persons or entity for whom such signature is indicated.

 

26.           Signatories’
Understanding.  By executing this
Agreement, the Parties affirm that they are competent, that they have been
represented by counsel, or had the opportunity to be represented by counsel,
and that they understand and accept the nature, terms and scope of this
Agreement.

 

27.           Counterpart
Signature; Facsimile Delivery.  This
Agreement may be executed in two or more counterparts and delivered by
facsimile, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each
of the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.

 

[SIGNATURE PAGE FOLLOWS]

 

11

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this
Agreement by their respective duly authorized officers.

 

	
   

  	
  UTSTARCOM, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Viraj Patel

  
	
   

  	
  Name:

  	
  Viraj Patel

  
	
   

  	
  Title:

  	
  Interim CFO, Corporate Controller, Vice President and Chief
  Accounting Officer

  

 

12

 

	
   

  	
  PERSONAL COMMUNICATIONS DEVICES HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan C. Stearns

  
	
   

  	
  Name:

  	
  Jonathan C. Stearns

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PERSONAL COMMUNICATIONS DEVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By: PERSONAL COMMUNICATIONS DEVICES HOLDINGS, its sole Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan C. Stearns

  
	
   

  	
  Name:

  	
  Jonathan C. Stearns

  
	
   

  	
  Title:

  	
  Managing Member

  

 

13

 

Exhibit A

Subject
Units

 

All units of GTX 75 handset Products provided
under the Supplier Agreement and returned to UTS Inc. prior to the Effective
Date or pursuant to the terms of this Agreement.

 

14

 

Exhibit B

Inventory
Products

 

One Hundred Sixty Seven Thousand and no/100
(167,000) units of GTX75 Products

 

15

 

Exhibit C

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, UTStarcom, Inc., a Delaware corporation,
hereby sells, assigns and transfers to Personal Communications Devices
Holdings, LLC, a Delaware limited liability company (the “Company”),
                                
Class A Units of the Company standing in its name on the books of the
Company and does hereby irrevocably constitute and appoint
                                                    ,
as attorney-in-fact, with full power of substitution, to transfer said units on
the books of the Company.

 

This Assignment Separate From Certificate was executed in conjunction
with the terms of the Settlement Agreement and Release between the above
assignor, the Company and Personal Communications Devices, LLC, a Delaware
limited liability company, dated as of June 30, 2009.

 

Dated: 
                      ,
2009

	
   

  	
  UTSTARCOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:Exhibit 10.1

 

AGREEMENT OF PURCHASE AND SALE

 

THIS
AGREEMENT, dated as of and effective the 1st day of October, 2007
by and between BE RESOURCES INC.,
a Colorado corporation (“Purchaser”),
and GREAT WESTERN EXPLORATION, LLC,
a Colorado limited liability company (“Seller”).

 

WHEREAS the Seller is
the lessee under certain mining leases and the holder of certain mining claims
located in Socorro County and Sierra County, New Mexico set forth in
Schedule A (“Mineral Interests”);

 

AND WHEREAS the Seller
wishes to sell, assign, convey, transfer and set over unto the Purchaser a 100%
legal and beneficial interest in and to the Mineral Interests together with all
related permits, data, office equipment, records, and other personal property
owned by the Seller as of the date of closing, (collectively referred to as “Other Assets”) and the Purchaser wishes to
acquire same, on the terms and conditions set forth in this agreement;

 

AND WHEREAS the Mineral
Interests together with the Other Assets are collectively referred to in this
agreement as the “Property”;

 

THIS
AGREEMENT WITNESSES THAT, in consideration of the premises and the
respective covenants and agreements hereinafter set forth in this agreement and
other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties do covenant and agree with one another as
follows:

 

1.                                      TRANSFER

 

1.1                                 Seller shall at
the Time of Closing (as hereinafter defined) sell, assign, convey, transfer and
set over unto Purchaser a 100% legal and beneficial interest in and to the
Property and the Purchaser shall at the Time of Closing purchase the Property,
on the terms and conditions set forth in this agreement. The purchase price
payable by the Purchaser shall be equal to: (a) 10,000,000 shares of
common stock of the Purchaser (the “Shares”),
to be issued to Seller or as Seller directs, and (b) a 20% carried
interest in the Mineral Interests in favor of Seller or as Seller directs to be
evidenced by the execution by Purchaser of the NPR Royalty Agreements annexed
hereto as Schedule B (the “NPR Royalty
Agreements”).

 

1.2                                 Seller hereby
directs that the 10,000,000 shares referred to in Section 1.1 be issued
and registered as follows: Great Western Exploration, LLC (9,400,000
shares), South West Exploration, LLC (400,000 shares) and Bethany
Resources, LLC (200,000 shares). Seller will obtain Investment Letters
from South West Exploration, LLC and Bethany Resources, LLC in a form
reasonably satisfactory to Purchaser.

 

1.3                                 Seller confirms
that is has directed that the 20% carried interest in the Mineral Interest to
be evidenced by the NPR Royalty Agreements referred to in Section 1.1 be
issued as follows: Great Western Exploration, LLC (15.98%), South West
Exploration, LLC (0.68%), Bethany Resources, LLC (.34%) and Stewart
Jackson (3%).

 

1.4                                 Immediately
following the execution of this Agreement, Seller will make application for the
transfer of the bond referenced in section 2.1.9 into the Purchaser’s name
and agrees to cooperate with Purchaser and to execute any further documents and
take all further action reasonably necessary to transfer the bond into the name
of the Purchaser.

 

 

2.                                      REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTIES.

 

2.1                                 Representations,
Warranties and Covenants of Seller:

 

Seller hereby represents,
warrants and covenants to and in favour of the Purchaser as follows:

 

2.1.1                        The Seller is a
limited liability company duly incorporated and validly existing under the laws
of the State of Colorado.

 

2.1.2                        The Seller is
the sole registered and beneficial owner of the Property, free and clear of all
claims, encumbrances and royalty interests other than the paramount title of
the United States with respect to the Mining Claims (hereinafter defined) and
the royalty interests in favour of governmental authorities and the Sullivan
lessors, and Seller does warrant and will defend the title to the Property in
Purchaser’s name against all claims, whether now existing or hereafter arising,
not hereinbefore expressly excepted. The Seller has the exclusive right to
dispose of the Property as provided in this agreement and such disposition will
not violate, contravene, breach or offend against or result in any default
under any indenture, mortgage, lease, agreement, obligation, instrument,
charter or by-law provisions, order, judgment, decree, license, permit or laws,
to which the Seller is a party or subject or by which the Seller is bound or
affected.

 

2.1.3                        Except as to
the mining claims set forth on Schedule A (the “Mining Claims”), there are
no notifications, approvals or consents, whether of governmental authorities or
others, required in connection with the sale, assignment, conveyance and
transfer of the Property by the Seller to the Purchaser or the execution,
delivery and performance of this agreement or any other documents or agreements
to be delivered under this agreement. With respect to the Mining Claims,
immediately following the execution of this Agreement, Seller shall make
application for transfer of the Mining Claims into Purchaser’s name, cooperate
with Purchaser, and do all things necessary or required by the State of New
Mexico, the United States Department of the Interior Bureau of Land Management,
and all other appropriate local, state, and federal agencies in order to
transfer all right, title, and interest in the Mining Claims into the name of
Purchaser.

 

2.1.4                        The Seller has
all necessary corporate power, authority and capacity to enter into this
agreement and to perform its obligations under this agreement. The execution
and delivery of this agreement and the consummation of the transactions
contemplated by this agreement have been duly authorized by all necessary
corporate action on the part of the Seller.

 

2.1.5                        This agreement
constitutes a legal, valid and binding obligation of the Seller, enforceable
against it in accordance with its terms.

 

2.1.6                        The Seller is
not a party to, bound or affected by or subject to any indenture, mortgage,
lease, agreement, obligation, instrument, charter or by-law provision, order,
judgement, decree, licence, permit, laws or governmental authorization which
would be violated, contravened, breached by, or under which default would occur
or a claim, restriction or encumbrance would be created as a result of the
execution and delivery by the Seller of this agreement or the performance by
the Seller of any of the terms and conditions of this agreement or any other
documents or agreements to be delivered under this agreement.

 

2.1.7                        There are no
claims, investigations, complaints, grievances or proceedings, including
appeals and applications for review, in progress, or, to the knowledge of the
Seller, pending or threatened against or relating to the Seller before any
court or governmental authority, which, if determined adversely to the Seller,
would,

 

(a)                                  enjoin,
restrict or prohibit the sale of all or any part of the Property as
contemplated by this agreement, or

 

(b)                                 prevent the
Seller from fulfilling any of its obligations under this agreement,

 

2

 

and the Seller has no
knowledge of any existing grounds on which any such claims, investigations,
complaints, grievances or proceedings might be commenced with any reasonable
likelihood of success.

 

2.1.8                        The Mineral
Interests are in good standing and all activities conducted in relation to the
Mineral Interests have been conducted in compliance in all material respects
with all applicable laws, rules, regulations, tariffs, orders and directives of
each governmental authority having jurisdiction.

 

2.1.9                        Other than
certain reclamation obligations pertaining to Seller’s exploration activities,
which obligations are secured by a bond obtained by the Seller, neither the
Seller nor the Property is subject to any contingent or other liability
relating to the restoration or rehabilitation of land, water or any other part
of the environment or non-compliance with environmental laws and no hazardous
or toxic waste or substance has been stored on the Property or disposed of in a
manner contrary to any environmental laws, and there are no contaminants on any
portion of the Property.

 

2.1.10                  The Shares are
being acquired for investment purposes only, and not with a view to
distribution, assignment or resale to others or to fractionalization in whole
or in part. Other than as set forth in this agreement, no other person or
entity has or will have a direct or indirect beneficial interest in the Shares.
Except as may be set forth in this agreement, the Seller will not sell,
hypothecate or otherwise transfer the Shares unless (a) the consent of the
Purchaser has been received and (i) the Shares are registered under the
Securities Act of 1933, as amended, and applicable state securities laws or (ii) in
the opinion of counsel acceptable to the Purchaser, an exemption from the
registration requirements of the Act and such state laws is available.

 

2.1.11                  The Seller,
either alone or with the assistance of its professional advisor, has such
knowledge and experience in financial and business matters that the Seller is
capable of evaluating the merits and risks of the acquisition of the Shares and
has the financial resources to undertake such risks.

 

2.1.12                  The Seller can
bear the economic risk of an investment for an indefinite period of time and
can at the present time afford a substantial loss of its investment.

 

2.1.13                  Seller hereby
acknowledges that the securities to be issued by Purchaser pursuant to this
agreement have not been registered under the Securities Act of 1933, as
amended, nor registered under any state securities laws. Such securities may
not be offered for sale, sold, delivered after sale, transferred, pledged, or
hypothecated unless registered under applicable federal and state securities
laws or unless, in the opinion of counsel satisfactory to the Purchaser, such
registration is not required. Seller further acknowledges that the securities
to be issued by Purchaser pursuant to this agreement are subject to other
restrictions, terms, and conditions as set forth in the Purchaser’s Articles of
Incorporation as filed with the Colorado Secretary of State.

 

2.1.14                  The Seller is
aware and has evaluated the substantial risks involved in acquiring the Shares
and realizes (a) that the Shares as an investment involve a high degree of
risk, including but not limited to, the risk of economic loss of its
investment; (b) the transfer of the shares will be restricted and require
conformity with such restrictions; and (c) all certificates evidencing the
Shares will contain or be endorsed with the following, or substantially
equivalent, legend:

 

THE SHARES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), IN RELIANCE UPON THE REPRESENTATION BY
THE HOLDER THAT THEY HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT
WITH A VIEW TO RESALE OR FURTHER DISTRIBUTION. SUCH SHARES MAY NOT BE
OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR
HYPOTHECATED, NOR WILL ANY ASSIGNEE OR ENDORSEE 

 

3

 

HEREOF BE RECOGNIZED AS AN
OWNER HEREOF BY THE ISSUER FOR ANY PURPOSE, UNLESS A REGISTRATION STATEMENT
UNDER THE ACT WITH RESPECT TO SUCH SHARES SHALL THEN BE IN EFFECT OR UNLESS THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION SHALL BE ESTABLISHED TO THE
SATISFACTION OF COUNSEL FOR THE ISSUER.

 

THE TRANSFER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY THE TERMS OF THE
ARTICLES OF INCORPORATION FILED WITH THE COLORADO SECRETARY OF STATE ON AUGUST
8, 2007.

 

2.1.15                  The Purchaser
has made available to the Seller, all documents and information that the Seller
has requested relating to the acquisition of the Shares. Seller believes that
it has received all information that it considers necessary or appropriate for
deciding whether to acquire the Shares and that it has had the opportunity to
ask questions and receive answers from the Purchaser regarding the terms and
conditions of the offering of the Shares, the business, prospects and financial
condition of the Purchaser.

 

2.1.16                  All of the
foregoing representations and warranties will be true on and as of the Closing
Date and the Seller shall indemnify and hold the Purchaser harmless from and
against all losses, claims, damages, payments, liabilities, costs, fines,
penalties and expenses of whatsoever nature or kind to which the Purchaser may
become subject or otherwise involved as a result of a breach of any of the
foregoing representations and warranties.

 

2.2                                 Representations,
Warranties and Covenants of Purchaser.

 

Purchaser hereby represents,
warrants and covenants to and in favour of the Seller as follows:

 

2.2.1                        The Purchaser
is a corporation duly incorporated and validly existing under the laws of the
State of Colorado.

 

2.2.2                        There are no
notifications, approvals or consents, whether of governmental authorities or
others, required in connection with the purchase of the Property by the
Purchaser or the execution, delivery and performance of this agreement by the
Purchaser or any other documents or agreements to be delivered under this
agreement by the Purchaser.

 

2.2.3                        The Purchaser
has all necessary power, authority and capacity to enter into this agreement
and to perform its obligations under this agreement. The execution and delivery
of this agreement and the consummation of the transactions contemplated under
this agreement have been duly authorized by all necessary corporate action on
the part of the Purchaser.

 

2.2.4                        Each of this
agreement, and when executed and delivered, the NPR Royalty Agreement,
constitutes or will constitute a legal, valid and binding obligation of the
Purchaser enforceable against it in accordance with its terms.

 

2.2.5                        The Purchaser
is not a party to, bound or affected by or subject to any indenture, mortgage,
lease, agreement, obligation, instrument, charter or by-law provision, order,
judgement, decree, license, permit, laws or governmental authorization which
would be violated, contravened or breached by, or under which any default would
occur or a claim, restriction or encumbrance would be created as a result of
the execution and delivery by the Purchaser of this agreement or the
performance by the Purchaser of any of the terms of this agreement or any other
documents or agreements to be delivered under this agreement.

 

2.2.6                        There are no
claims, investigations, complaints, grievances or proceedings, including
appeals and applications for review, in progress or, to the knowledge of the
Purchaser, pending, or threatened against or relating to the Purchaser before
any court or governmental authority, which, if determined adversely to the
Purchaser, would,

 

4

 

(a)                                  enjoin,
restrict or prevent the Purchaser from issuing the Shares, or

 

(b)                                 prevent the
Purchaser from fulfilling any of its obligations under this agreement,

 

and the Purchaser has no
knowledge of any existing grounds on which any such claims, investigations,
complaints, grievances or proceedings might be commenced with any reasonable
likelihood of success.

 

2.2.7                        All of the
foregoing representations and warranties will be true on and as of the Closing
Date.

 

3.                                      ADDITIONAL MINING CLAIMS OR LEASES.

 

3.1                                 The parties
agree and acknowledge that the Mineral Interests conveyed pursuant to this
agreement do not cover the entire extent of the known or predicted mining
leases or claims which are related to the Purchaser’s mining activities in
Socorro County and Sierra County, New Mexico and which could be deemed to be an
asset by the Purchaser.

 

3.2                                 The Seller, and
its members as intended third party beneficiaries of this agreement, hereby agree
that any mining lease, license, grant, concession, permit, patent, other
mineral property, or claim which, subsequent to the execution of this
agreement, are located and recorded in Socorro County or Sierra County, New
Mexico by the Seller or one of the Seller’s members shall, at the election of
the Purchaser and upon written notice by the Purchaser indicating such
election, be deemed to be included in the definition of Mineral Interests as
set forth on Schedule A and conveyed to Purchaser pursuant to this
agreement. Upon such election and notice, such mining lease, license, grant,
concession, permit, patent, other mineral property, or claim shall also become
subject to the terms and conditions set forth in the NPR Royalty Agreement.

 

3.3                                 Upon receiving written
notice of Purchaser’s election to deem a specific mining lease, license, grant,
concession, permit, patent, other mineral property, or claim as included in the
definition of Mineral Interests and conveyed to the Purchaser as provided in
Paragraph 3.2, Seller and/or its member(s) shall cooperate with
Purchaser, and do all things necessary or required by the state of New Mexico,
the United States Department of the Interior Bureau of Land Management, and all
other appropriate local, state, and federal agencies in order to transfer all
right, title, and interest in the mining lease, license, grant, concession,
permit, patent, other mineral property, or claim into the name of the
Purchaser.

 

3.4                                 Such mining
lease, license, grant, concession, permit, patent, other mineral property, or
claim may also become subject to the terms and conditions set forth in the NPR
Royalty Agreement even if no election is made by the Purchaser to include the
mining lease, license, grant, concession, permit, patent, other mineral
property, or claim in the definition of Mineral Interests as set forth on
Schedule A and conveyed to Purchaser, if so provided by the terms of the
NPR Royalty Agreement.

 

4.                                      CLOSING.

 

4.1                                 The closing of
the transactions contemplated by this agreement shall take place at 2:00 p.m.
(New Mexico time) (the “Time of Closing”)
on October 1, 2007, or such earlier or later date as may be mutually
agreed upon by the parties (the “Closing Date”).
The closing shall take place at the offices of Dufford & Brown, P.C,
1700 Broadway, Suite 2100, Denver, CO.

 

4.2                                 Seller shall,
at the Time of Closing, deliver the following to the Purchaser:

 

(a)                                  Special
Warranty Deeds, assignments, and bill of sale evidencing the transfer of the
Property in the name of the Purchaser, together with evidence of registration;

 

5

 

(b)                                 assignment in
form satisfactory to the Purchaser of the Sullivan Lease referred to in
Schedule A;

 

(c)                                  evidence
satisfactory to the Purchaser of all governmental approvals required on the
part of the Seller to enter into this agreement and to perform its obligations
under this agreement;

 

(d)                                 evidence
satisfactory to the Purchaser that all corporate authorizations required on the
part of the Seller to enter into this agreement and to perform Seller’s
obligations hereunder have been obtained;

 

(e)                                  executed copies
of the Conversion Agreements between the Seller and each of South West
Exploration, LLC and Bethany Resources, LLC together with any other
agreements affecting or relating to the Property;

 

(f)                                    copies of the
NPR Royalty Agreements executed by the Seller, South West
Exploration, LLC, Bethany Resources, LLC, and Stewart Jackson as
directed under section 1.3;

 

(g)                                 title opinion
of Comeau, Maldegan, Templeton & Indall, LLP directed to
Purchaser respecting the Mineral Interests in form satisfactory to the
Purchaser; and

 

(h)                                 Signed
Investment Letters from South West Exploration, LLC and Bethany
Resources, LLC in a form reasonably satisfactory to Purchaser.

 

4.3                                 Purchaser
shall, at the Time of Closing, deliver the following to the Seller:

 

(a)                                  share
certificates evidencing the Shares, registered as directed under
section 1.2;

 

(b)                                 copies of the
NPR Royalty Agreements in the names as directed by Seller under
section 1.3, executed by the Purchaser;

 

(c)                                  evidence
satisfactory to the Seller of all government approvals required on the part of
the Purchaser to enter into this agreement and to perform its obligations under
this agreement; and

 

(d)                                 evidence
satisfactory to the Seller that all corporate authorizations required on the
part of the Purchaser to enter into agreement and to perform Purchaser’s
obligations hereunder have been obtained.

 

5.                                      MISCELLANEOUS.

 

5.1                                 Each party to
this agreement shall at the request of the other furnish, execute and deliver
such documents, instruments, certificates, notices or other further assurances
as counsel of the requesting party shall reasonably deem necessary or desirable
for effecting complete consummation of the transactions contemplated by this
agreement.

 

5.2                                 Each and every
one of the representations, warranties, covenants and agreements made herein by
either party, shall survive the closing and the consummation of the
transactions contemplated by this agreement, notwithstanding any investigation
heretofore or hereafter made by the parties hereto.

 

5.3                                 All notices,
approvals or other communications to be sent or given to the Seller shall be
deemed validly and properly given or made if in writing and delivered by hand
or registered or certified mail, return receipt requested, and addressed to
Great Western Exploration, LLC at 2008 Meander Road, Windsor, CO 80550.

 

5.4                                 All notices,
approvals or other communications to be sent or given to the Purchaser shall be
deemed validly and properly given or made if in writing and delivered by hand
or registered or certified 

 

6

 

mail, return receipt requested, and addressed
to BE Resources Inc. at 107 Hackney Crescent, Box 684, Elephant
Butte, NM, 87935, attention David Tognoni.

 

5.5                                 Either of the
parties hereto may give notice to the other at any time by the methods
specified above of a change in the address at which, or the person to whom,
notices addressed to it are to be delivered in the future.

 

5.6                                 This agreement
may be executed in any number of counterparts, each of which shall be taken to
be an original.

 

5.7                                 No amendment,
modification or waiver of any provision of this agreement shall be binding on
any party unless consented to in writing by such party. No waiver of any
provision of this agreement shall constitute a waiver of any other provision,
nor shall any waiver constitute a continuing waiver unless otherwise expressly
provided.

 

5.8                                 The invalidity
or unenforceability of any particular provision of this agreement shall not
affect the other provisions of this agreement, and this agreement shall be
construed as if such invalid or unenforceable provision was omitted. All
parties hereto have participated actively in the negotiation and drafting of
this agreement. The terms of this agreement shall not be construed against, or
more favorably to, any party, regardless of their responsibility for its
preparation.

 

5.9                                 This agreement
shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns.

 

5.10                           This agreement
and any documents or instruments delivered pursuant to this agreement
constitute the entire agreement and understanding between the parties and
supersede any prior agreement and understanding relating to the subject matter
of this agreement.

 

5.11                           Whenever in
this agreement words, including pronouns, are used in the masculine, they shall
be read and construed in the feminine or neuter wherever they would so apply,
and wherever in this agreement words, including pronouns, are used in the
singular, they shall be read and construed in the plural, wherever they would
so apply.

 

5.12                           This agreement
shall be governed by and construed in accordance with the laws of the State of
Colorado, and each of the parties submits to the jurisdiction of the courts of
the State of Colorado for the resolution of any dispute or controversy arising
in connection herewith.

 

7

 

IN WITNESS WHEREOF the parties have duly
executed and delivered this agreement effective as of the date first above
written.

 

	
  SELLER:

  	
   

  
	
   

  	
   

  	
   

  
	
  GREAT
  WESTERN EXPLORATION, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
  /s/ DAVID TOGNONI

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  PURCHASER:

  	
   

  
	
   

  	
   

  	
   

  
	
  BE
  RESOURCES INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  Per:

  	
  /s/ DAVID TOGNONI

  	
   

  
	
   

  	
  Name: David Tognoni

  	
   

  
	
   

  	
  Title: President and CEO

  	
   

  

 

8

 

Schedule A

Mineral Interests

 

The mining leases include:

 

State of New Mexico lease
number HG 0059, HG 0060 and HG 0061

Mining lease dated January 2,
2004 between David Q. Tognoni as leasee, and Kenneth Alan Sullivan and
Cherrill L. Sullivan as lessor, as assigned by David Q. Tognoni to
Great Western Exploration, LLC on February 3, 2004 (the “Sullivan Lease”)

 

The mining claims include:

 

The following mining claims
located in Sections 3, 27 and 34, Township 10 South, Range 8 West,
N.M.P.M, Sierra County New Mexico:

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Bertrandite #34

  	
   

  	
  170506

  	
   

  	
  100

  	
   

  	
  2116

  	
   

  
	
  Bertrandite #35

  	
   

  	
  170507

  	
   

  	
  100

  	
   

  	
  2117

  	
   

  
	
  Bertrandite #54

  	
   

  	
  170602

  	
   

  	
  100

  	
   

  	
  3317

  	
   

  
	
  Bertrandite #65

  	
   

  	
  170792

  	
   

  	
  101

  	
   

  	
  625

  	
   

  
	
  Bertrandite #66

  	
   

  	
  170793

  	
   

  	
  101

  	
   

  	
  626

  	
   

  
	
  Bertrandite #67

  	
   

  	
  170794

  	
   

  	
  101

  	
   

  	
  627

  	
   

  

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Berts Clay #92

  	
   

  	
  173538

  	
   

  	
  105

  	
   

  	
  45

  	
   

  
	
  Berts Clay #93

  	
   

  	
  173539

  	
   

  	
  105

  	
   

  	
  44

  	
   

  

 

AND

 

The following mining claims
located in Sections 6, 13, 14, 15, 20, 21, 22, 24, 26, 27, 28, 33 and 34,
Township 9 South, Range 8 West, N.M.P.M., Socorro County, New Mexico:

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Bert #1

  	
   

  	
  171160

  	
   

  	
  511

  	
   

  	
  783

  	
   

  	
  Bert #2

  	
   

  	
  171161

  	
   

  	
  511

  	
   

  	
  784

  	
   

  
	
  Bert #3

  	
   

  	
  171162

  	
   

  	
  511

  	
   

  	
  785

  	
   

  	
  Bert #4

  	
   

  	
  171163

  	
   

  	
  511

  	
   

  	
  786

  	
   

  
	
  Bert #5

  	
   

  	
  171164

  	
   

  	
  511

  	
   

  	
  787

  	
   

  	
  Bert #6

  	
   

  	
  171165

  	
   

  	
  511

  	
   

  	
  788

  	
   

  
	
  Bert #7

  	
   

  	
  171166

  	
   

  	
  511

  	
   

  	
  789

  	
   

  	
  Bert #8

  	
   

  	
  171167

  	
   

  	
  511

  	
   

  	
  790

  	
   

  
	
  Bert #9

  	
   

  	
  171168

  	
   

  	
  511

  	
   

  	
  791

  	
   

  	
  Bert #10

  	
   

  	
  171169

  	
   

  	
  511

  	
   

  	
  792

  	
   

  
	
  Bert #11

  	
   

  	
  171170

  	
   

  	
  511

  	
   

  	
  793

  	
   

  	
  Bert #12

  	
   

  	
  171171

  	
   

  	
  511

  	
   

  	
  794

  	
   

  

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Special Clay #100

  	
   

  	
  171152

  	
   

  	
  511

  	
   

  	
  1938

  	
   

  	
  Special Clay #101

  	
   

  	
  171153

  	
   

  	
  511

  	
   

  	
  1939

  	
   

  
	
  Special Clay #102

  	
   

  	
  171154

  	
   

  	
  511

  	
   

  	
  1940

  	
   

  	
  Special Clay #103

  	
   

  	
  171155

  	
   

  	
  511

  	
   

  	
  1941

  	
   

  
	
  Special Clay #104

  	
   

  	
  171156

  	
   

  	
  511

  	
   

  	
  1942

  	
   

  	
  Special Clay #105

  	
   

  	
  171157

  	
   

  	
  511

  	
   

  	
  1943

  	
   

  
	
  Special Clay #106

  	
   

  	
  171158

  	
   

  	
  511

  	
   

  	
  1944

  	
   

  	
  Special Clay #107

  	
   

  	
  171159

  	
   

  	
  511

  	
   

  	
  1945

  	
   

  

 

9

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument
  #

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument
  #

  	
   

  
	
  Berts Clay #1

  	
   

  	
  173447

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #2

  	
   

  	
  173448

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #3

  	
   

  	
  173449

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #4

  	
   

  	
  173450

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #5

  	
   

  	
  173451

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #6

  	
   

  	
  173452

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #7

  	
   

  	
  173453

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #8

  	
   

  	
  173454

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #9

  	
   

  	
  173455

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #10

  	
   

  	
  173456

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #11

  	
   

  	
  173457

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #13

  	
   

  	
  173459

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #14

  	
   

  	
  173460

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #15

  	
   

  	
  173461

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #16

  	
   

  	
  173462

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #17

  	
   

  	
  173463

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #18

  	
   

  	
  173464

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #19

  	
   

  	
  173465

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #21

  	
   

  	
  173467

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #22

  	
   

  	
  173468

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #23

  	
   

  	
  173469

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #24

  	
   

  	
  173470

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #25

  	
   

  	
  173471

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #26

  	
   

  	
  173472

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #27

  	
   

  	
  173473

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #28

  	
   

  	
  173474

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #29

  	
   

  	
  173475

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #30

  	
   

  	
  173476

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #31

  	
   

  	
  173477

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #33

  	
   

  	
  173479

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #34

  	
   

  	
  173480

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #35

  	
   

  	
  173481

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #36

  	
   

  	
  173482

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #37

  	
   

  	
  173483

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #38

  	
   

  	
  173484

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #39

  	
   

  	
  173485

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #40

  	
   

  	
  173486

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #42

  	
   

  	
  173488

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #43

  	
   

  	
  173489

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #44

  	
   

  	
  173490

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #45

  	
   

  	
  173491

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #46

  	
   

  	
  173492

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #47

  	
   

  	
  173493

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #48

  	
   

  	
  173494

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #49

  	
   

  	
  173495

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #50

  	
   

  	
  173496

  	
   

  	
  200576333

  	
   

  

 

	
  Claim
  Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument #

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument #

  	
   

  
	
  Berts Clay #51

  	
   

  	
  173497

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #52

  	
   

  	
  173498

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #53

  	
   

  	
  173499

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #54

  	
   

  	
  173500

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #55

  	
   

  	
  173501

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #56

  	
   

  	
  173502

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #57

  	
   

  	
  173503

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #58

  	
   

  	
  173504

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #59

  	
   

  	
  173505

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #60

  	
   

  	
  173506

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #61

  	
   

  	
  173507

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #62

  	
   

  	
  173508

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #63

  	
   

  	
  173509

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #64

  	
   

  	
  173510

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #65

  	
   

  	
  173511

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #66

  	
   

  	
  173512

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #67

  	
   

  	
  173513

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #68

  	
   

  	
  173514

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #69

  	
   

  	
  173515

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #70

  	
   

  	
  173516

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #71

  	
   

  	
  173517

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #72

  	
   

  	
  173518

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #73

  	
   

  	
  173519

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #74

  	
   

  	
  173520

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #75

  	
   

  	
  173521

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #76

  	
   

  	
  173522

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #77

  	
   

  	
  173523

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #78

  	
   

  	
  173524

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #79

  	
   

  	
  173525

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #80

  	
   

  	
  173526

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #81

  	
   

  	
  173527

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #82

  	
   

  	
  173528

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #83

  	
   

  	
  173529

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #84

  	
   

  	
  173530

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #85

  	
   

  	
  173531

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #86

  	
   

  	
  173532

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #87

  	
   

  	
  173533

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #88

  	
   

  	
  173534

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #89

  	
   

  	
  173535

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #90

  	
   

  	
  173536

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #91

  	
   

  	
  173537

  	
   

  	
  200576333

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10

 

	
  Claim
  Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Bertrandite #9

  	
   

  	
  170487

  	
   

  	
  508

  	
   

  	
  1583

  	
   

  	
  Bertrandite #30

  	
   

  	
  170468

  	
   

  	
  508

  	
   

  	
  1580

  	
   

  
	
  Bertrandite #10

  	
   

  	
  170486

  	
   

  	
  508

  	
   

  	
  1584

  	
   

  	
  Bertrandite #31

  	
   

  	
  170467

  	
   

  	
  508

  	
   

  	
  1581

  	
   

  
	
  Bertrandite #11

  	
   

  	
  170485

  	
   

  	
  508

  	
   

  	
  1585

  	
   

  	
  Bertrandite #39

  	
   

  	
  170511

  	
   

  	
  508

  	
   

  	
  5046

  	
   

  
	
  Bertrandite #12

  	
   

  	
  170484

  	
   

  	
  508

  	
   

  	
  1586

  	
   

  	
  Bertrandite #41

  	
   

  	
  170513

  	
   

  	
  508

  	
   

  	
  5048

  	
   

  
	
  Bertrandite #15

  	
   

  	
  170481

  	
   

  	
  508

  	
   

  	
  1567

  	
   

  	
  Bertrandite #45

  	
   

  	
  170515

  	
   

  	
  508

  	
   

  	
  5050

  	
   

  
	
  Bertrandite #18

  	
   

  	
  170478

  	
   

  	
  508

  	
   

  	
  1570

  	
   

  	
  Bertrandite #56

  	
   

  	
  170598

  	
   

  	
  509

  	
   

  	
  1692

  	
   

  
	
  Bertrandite #21

  	
   

  	
  169878

  	
   

  	
  504

  	
   

  	
  1845

  	
   

  	
  Bertrandite #57

  	
   

  	
  170597

  	
   

  	
  509

  	
   

  	
  1691

  	
   

  
	
  Bertrandite #22

  	
   

  	
  170475

  	
   

  	
  508

  	
   

  	
  1573

  	
   

  	
  Bertrandite #58

  	
   

  	
  170596

  	
   

  	
  509

  	
   

  	
  1690

  	
   

  
	
  Bertrandite #25

  	
   

  	
  170472

  	
   

  	
  508

  	
   

  	
  1576

  	
   

  	
  Bertrandite #59

  	
   

  	
  170595

  	
   

  	
  509

  	
   

  	
  1689

  	
   

  
	
  Bertrandite #26

  	
   

  	
  170471

  	
   

  	
  508

  	
   

  	
  1577

  	
   

  	
  Bertrandite #64

  	
   

  	
  170590

  	
   

  	
  509

  	
   

  	
  1684

  	
   

  
	
  Bertrandite #29

  	
   

  	
  170608

  	
   

  	
  509

  	
   

  	
  2469

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]