Document:

Filed by sedaredgar.com - Argentex Mining Corporation - Exhibit 10.1

INDEPENDENT CONTRACTOR AGREEMENT

This Agreement is dated effective the 1st day of August,
2009.

BETWEEN:

  
    
      
        ARGENTEX MINING CORPORATION, a corporation formed
          pursuant to the laws of the State of Nevada and having an office for
          business located at Suite 602, 1112 West Pender Street, Vancouver, British
          Columbia V6E 2S1 

        (the “Company”)

      

    

  

AND:

  
    
      
        FRONTERA GEOLOGICAL SERVICES LTD., a corporation
          formed pursuant to the laws of the Province of British Columbia and
          having an office for business located at 1234 Doran Road, North Vancouver
          British Columbia Canada V7K 1M7 

        (the “Contractor”)

      

    

  

AND JOINED BY:

  
    
      
        KEN HICKS, an individual resident of the Province
          of British Columbia with an address of 1234 Doran Road, North Vancouver
          British Columbia Canada V7K 1M7 

        (“Hicks”)

      

    

  

WHEREAS:

	A. 	
      The Company is engaged in the business of locating,
      acquiring and exploring natural resource mineral properties and has
      acquired interests in several mineral properties located in Argentina and
      in Canada.

	 	 
	B. 	
      The Company wishes to obtain and the Contractor wishes to
      provide certain services to the Company on the terms and conditions
      contained in this Agreement.

	 	 
	C. 	
      Hicks desires to join in this Agreement for the purposes
      expressed.

NOW THEREFORE in consideration of the premises, the
mutual covenants and agreements hereinafter set forth and for other good and
valuable consideration, the parties hereby covenant and agree as follows: 

	1. 	
      DEFINITIONS. For the purposes of this Agreement
      (including the Schedules hereto), the following terms will have the
      following meanings:

	 	 
	1.1. 	
      “Board” means the Board of Directors of the
    Company;

	 	 
	1.2. 	
      “Bonus Price” means, for purposes of calculating any
      Incentive Remuneration referred to in any subsection of Section 3.3,
      below, the closing price for one Common

 

2

  Share, last sale of the day on the Event Date, on either
    the OTC-Bulletin Board or the TSX Venture Exchange, whichever is, on the Event
    Date the Company’s primary trading market; 

	1.3. 	
      “Cause” means:

	 	 	 
		(a) 	
      failure of the Contractor and/or Hicks to observe or
      perform any of the material covenants and obligations imposed by this
      Agreement;

	 	 	 
		(b) 	
      failure of the Contractor and/or Hicks to observe any of
      the covenants and obligations hereunder that are not material, if the
      Contractor and/or Hicks does not remedy such failure within a reasonable
      time after receiving written notice thereof;

	 	 	 
		(c) 	
      fraud, dishonesty, gross negligence or willful
      malfeasance in connection with the Contractor and/or Hicks performance of
      the Consulting Services; or

	 	 	 
		(d) 	
      the conviction of the Contractor and/or Hicks with
      respect to the commission of a crime involving moral turpitude;

	 	 	 
	1.4. 	
      “Change of Control” means:

	 	1.4.1. 	
      the acquisition, after the date of this Agreement and
      excluding any acquisitions from the Company, by any one individual, entity
      or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
      Securities and Exchange Act of 1934), of beneficial ownership of
      40% or more of either the then outstanding shares of common stock of the
      Company or the combined voting power of the then outstanding voting
      securities of the Company entitled to vote generally in the election of
      directors, which causes a change in the control of the board of directors
      of the Company resulting from the election by the shareholders of the
      Company of less than a majority of the persons nominated for election by
      management of the Company;

	 	 	 
	 	1.4.2. 	
      the approval by the stockholders of the Company of a
      reorganization, merger or consolidation of the Company in which the
      individuals and entities who were the respective beneficial owners of the
      common stock and voting securities of the Company immediately prior to
      such reorganization, merger or consolidation do not, following such
      reorganization, merger or consolidation, beneficially own, directly or
      indirectly, more than 50% of, respectively, the then outstanding shares of
      common stock and the combined voting power of the then outstanding voting
      securities entitled to vote generally in the election of directors, as the
      case may be, of the corporation resulting from such reorganization, merger
      or consolidation; or

	 	 	 
	 	1.4.3. 	
      a liquidation or dissolution of the Company or the sale
      or other disposition of all or substantially all of the assets of the
      Company;

3

	1.5. 	
      “Common Shares” means shares of common stock, par value
      $0.001, of the Company;

	 	 	 
	1.6. 	
      “Confidential Information” means information, whether or
      not originated by the Contractor or Hicks, that relates to the business or
      affairs of the Company, its affiliates, clients or suppliers and is
      confidential or proprietary to, about or created by the Company, its
      affiliates, clients, or suppliers. Confidential Information includes, but
      is not limited to, the following types of confidential information and
      other proprietary information of a similar nature (whether or not reduced
      to writing or designated or marked as confidential):

	 	 	 
		1.6.1. 	
      the Company’s mineral properties, exploration results,
      estimated economic reserves, feasibility of mining the properties, as well
      as information relating to strategies, research, communications, business
      plans, and financial data of the Company and any information of the
      Company which is not readily publicly available;

	 	 	 
		1.6.2. 	
      work product resulting from or related to work or
      projects performed for or to be performed for the Company or its
      affiliates, including but not limited to, the methods, processes,
      procedures, analysis, techniques and audits used in connection
      therewith;

	 	 	 
		1.6.3. 	
      any intellectual property contributed to the Company, and
      any other technical and business information of the Company, its
      subsidiaries and affiliates which is of a confidential, trade secret
      and/or proprietary character;

	 	 	 
		1.6.4. 	
      internal Company personnel and financial information,
      supplier names and other supplier information, purchasing and internal
      cost information, internal services and operational manuals, and the
      manner and method of conducting the Company’s business;

	 	 	 
		1.6.5. 	
      marketing and development plans, price and cost data,
      price and fee amounts, pricing and billing policies, quoting procedures,
      marketing techniques and methods of obtaining business, forecasts and
      forecast assumptions and volumes, current and prospective client lists,
      and future plans and potential strategies of the Company that have been or
      are being discussed; and

	 	 	 
		1.6.6. 	
      all information that becomes known to the Contractor
      and/or Hicks as a result of this Agreement or the services performed
      hereunder that the Contractor and/or Hicks, acting reasonably, believes is
      confidential information or that the Company takes measures to
    protect.

Confidential Information does not
include:

	 	1.6.7. 	
      the general skills and experience gained by Hicks during
      the Contractor’s provision of the Consulting Services to the Company that
      the Contractor could reasonably have been expected to acquire in similar
      retainers or engagements with other companies;

4

	 	1.6.8. 	
      information publicly known without breach of this
      Agreement or similar agreements;

	 	 	 
	 	1.6.9. 	
      information, the disclosure of which by the Contractor is
      required to be made by any law, regulation or governmental authority or
      legal process of discovery (to the extent of the requirement), provided
      that before disclosure is made, notice of the requirement is provided to
      the Company, and to the extent reasonably possible in the circumstances,
      the Company is afforded an opportunity to dispute the requirement;
    or

	 	 	 
	 	1.6.10. 	
      information known to the Contractor at the date of this
      Agreement.

	1.7. 	
      “Consulting Effective Date” means the date of this
      Agreement as shown on the first page hereof;

	 	 	 
	1.8. 	
      “Consulting Effective Date” means date of this Agreement
      as shown on the first page;

	 	 	 
	1.9. 	
      “Consulting Fee” means the sum of CDN $12,500 per
      month.

	 	 	 
	1.10. 	
      “Consulting Services” means such services as are
      consistent with those ordinarily provided by a Chief Executive Officer,
      including the duties and responsibilities set out at Schedule “A” hereto
      as well as such other duties and responsibilities as may be reasonably
      required of Hicks from time-to-time either in respect of the foregoing or
      otherwise by the Board with respect to the Company and, if requested by
      the Company, to any and all of its subsidiaries from time to
  time.

	 	 	 
	1.11. 	
      “Consulting Anniversary Date” means the first anniversary
      of the date of this Agreement as shown on the first page;

	 	 	 
	1.12. 	
      “Consulting Termination Date” means the second
      anniversary of the date of this Agreement as shown on the first
    page;

	 	 	 
	1.13. 	
      “Directors” means the Directors of the Company, and
      “Director” means any one of them;

	 	 	 
	1.14. 	
      “Event Date” means the last day of the period during
      which a Technical Event, Trading Event or a Financing Event, including, if
      applicable, a Superior Financing Event, occurs;

	 	 	 
	1.15. 	
      “Financing Event” means:

	 	 	 
		1.15.1. 	
      During the period beginning on the Consulting Effective
      Date and expiring on the Consulting Anniversary Date, the Company receives
      gross proceeds from the Sale of Equity in an aggregate amount that is
      equal to or greater than $6,000,000 (U.S.), or

5

	 	1.15.2. 	
      During the period beginning on the Consulting Effective
      Date and expiring on the Consulting Anniversary Date, the Company receives
      gross proceeds from the Sale of Equity in an aggregate amount that is
      equal to or greater than $4,500,000 (U.S.).

To qualify as a “Financing Event”, the
Sale of Equity under Paragraph 1.15.2 must occur at an average price equal or
greater to $1.00 (U.S.) per share; 

	1.16. 	
      “GST” means Goods and Services Tax;

	 	 	 
	1.17. 	
      “Incentive Bonus” shall have the meaning attributed in
      Section 3.3, below;

	 	 	 
	1.18. 	
      “Multiplier” means the number 250,000 used in Subsection
      3.3.1, below, the number 150,000 used in Subsection 3.3.2, below, and the
      number 250,000 used in Subsection 3.3.3, below, but only prior to the date
      that the Incentive Bonus to which that Multiplier relates has been earned,
      if at all;

	 	 	 
	1.19. 	
      “OTC-BB” means the over-the-counter bulletin board
      operated by the Financial Industry Regulatory Authority (FINRA);

	 	 	 
	1.20. 	
      “Sale of Equity” means the sale, by the Company to
      investors for cash, of Common Shares, including those that are part of a
      “unit” comprised of a Common Share and a share purchase warrant but
      excluding the sale of any Common Shares pursuant to the exercise of
      warrants or stock options or the conversion of any other convertible
      securities;

	 	 	 
	1.21. 	
      “Stock Option Agreement” means an agreement on the
      Company’s standard form of stock option agreement;

	 	 	 
	1.22. 	
      “Stock Option Plan” means the Argentex Mining Corporation
      Stock Option Plan adopted by the Company on November 10, 2007;

	 	 	 
	1.23. 	
      “Stock Options” means those options to purchase one
      hundred thousand (100,000) Common Shares to be granted under the Stock
      Option Plan as described at Paragraph 3.2 herein;

	 	 	 
	1.24. 	
      “Superior Financing Event” means the Company is able to
      raise the amount identified in paragraph 1.15.2 from the sale of Common
      Shares or warrants at an average price of at least $1.50 (U.S.) per
      share;

	 	 	 
	1.25. 	
      “TSX-V” means the TSX Venture Exchange.

	 	 	 
	1.26. 	
      “Technical Event” means the completion of both a Resource
      Estimate and a complete and positive Scoping Study on the Company’s
      Pinquino Property, which must:

	 	 	 
		1.26.1. 	
      include recommendations of how to proceed forward on the
      technical side of the development for mining purposes of the Pinguino
      property; and

 6

	 	 1.26.2. 	 occur during the period beginning on the Consulting
        Effective Date and expiring on the Consulting Anniversary Date.

	
1.27. 		
“Termination Fee” means a lump sum equal to the Fee (plus value added taxes) for any of

	
	 	 	 
		
(i) 		
six months;

	
	 	 	 
		
(ii) 		
the remainder of the Term; or

	
	 	 	 
		
(iii) 		
two months for each year that Hicks has provided service to the Company since February, 2004,

	
	 	 	 
		
whichever is greater.

	
	 	 	 
	
1.28. 		
“Trading Event” means the average price of Common Shares equals or exceeds U.S. $3.00 on either the OTC-BB or the TSX-V for 20 consecutive trading days during the period beginning on the Consulting Effective Date and
expiring on the Consulting Anniversary Date;

	
	 	 	 
	
1.29. 		
“Vacation Time” means Hicks’ entitlement not to provide the Consulting Services for up to 20 business days in each calendar year and does not include weekends or statutory holidays. The Contractor will notify the
Company at the beginning of each calendar of this Agreement with respect to the scheduled Vacation Time for the year.

	
	 	 	 
	
2. 		
SERVICES TO BE PROVIDED

	
	 	 	 
	
2.1. 		
This Agreement and each of its terms are subject to:

	

	 	 2.1.1. 	 approval by the shareholders of the Company; and

	 	 	 
	 	 2.1.2. 	 the approval of or acceptance by the TSX-V if such
        approval or acceptance is required; or

	 	 	 
	 	 2.1.3. 	 the absence of any objections by the TSX-V if approval
        of or acceptance by the TSX-V is not required.

    If the TSX-V objects to any clause or term of this Agreement, such clause
    or term will be curtailed and limited only to the extent necessary to bring
    it within the requirements of the TSX-V and the remainder of this Agreement
    will not be affected thereby, and each term, provision, covenant, and condition
    of this Agreement will be and remain valid and enforceable to the fullest
    extent permitted by law.

	
2.2. 		
Effective on the Consulting Effective Date, the Contractor will cause Hicks to provide the Consulting Services to the Company and will ensure that Hicks:

	
	 	 	 
		
2.2.1. 		
devotes sufficient working time, attention, ability and expertise to successfully provide the Consulting Services to the Company in a timely manner; and

	

7

	 	2.2.2. 	
      well and faithfully serves the Company and uses his best
      efforts to promote the best interests of the
Company

	2.3. 	
      Each of Hicks and the Contractor will report directly to
      the Board and will keep the Board informed of all matters concerning the
      Consulting Services as requested by the Board from time to time.

	 	 	 
	2.4. 	
      During the term of this Agreement, the Company will
      nominate Hicks for election as a Director at all meetings of stockholders
      held for the purpose of electing directors. Any compensation to be paid to
      either of Hicks or the Contractor for service by Hicks on the Board will
      be negotiated separately from, and will be in addition to, the
      compensation to be paid to the Contractor pursuant to this
    Agreement.

	 	 	 
	3. 	
      REMUNERATION, EXPENSES AND INDEMNITY

	 	 	 
	3.1. 	
      Remuneration – Consulting Fees

	 	 	 
		3.1.1. 	
      Subject to Paragraphs 3.1.2 and Section 4, below, from
      the Consulting Effective Date to the Consulting Termination Date, the
      Company will pay the Contractor the Consulting Fee. The Board, as it may
      determine from time to time in its sole discretion, may grant the
      Contractor an increase in the Contractor Fee.

	 	 	 
		3.1.2. 	
      The remuneration referred to in Paragraph 3.1.1 will be
      payable at the end of each month upon receipt of an invoice, and does not
      include GST or HST. To the extent that the Contractor is required to remit
      GST or HST, the Contractor will show the applicable GST or HST amount as a
      separate line item on the Contractor’s invoice for services and provide
      the Company with the Contractor’s GST or HST registrant number.

	 	 	 
	3.2. 	
      Remuneration – Stock Options

	 	 	 
		3.2.1. 	
      Subject to compliance with all applicable laws,
      regulations and rules of any governmental authority, quotation system or
      stock exchange, and subject further to approval by the TSX-V if required,
      on or within two few business days following the Consulting Effective
      Date, the Company will grant the Stock Options to Hicks. The Stock Options
      shall have an exercise price equal to the closing price, last sale of the
      day, on the OTC-BB on the date the Stock Options are granted and a term of
      three years from the date of grant.

	 	 	 
		3.2.2. 	
      The Stock Options will vest in accordance with the Stock
      Option Plan.

	 	 	 
		3.2.3. 	
      The Stock Options will be granted subject to the terms of
      the Stock Option Plan, as the same may be amended from time to time, and
      the Stock Option Agreement. In the event of any inconsistency among this
      Agreement, the Stock Option Agreement and the Stock Option Plan, the terms
      of the Stock Option Plan will control.

8

	3.3. 	
      Incentive Bonus

	 	 	 
		
      Upon the occurrence of:

	 	 	 
		3.3.1. 	
      the Financing Event, Hicks will earn a cash Incentive
      Bonus equal to the Bonus Price multiplied by 250,000;

	 	 	 
		3.3.2. 	
      the Superior Financing Event, Hicks will earn, in
      addition to the cash Incentive Bonus paid under Paragraph 3.3.1 above, an
      additional cash Incentive Bonus equal to the Bonus Price multiplied by
      150,000; and;

	 	 	 
		3.3.3. 	
      the Technical Event, Hicks will earn a cash Incentive
      Bonus equal to the Bonus Price multiplied by 150,000;

	 	 	 
		3.3.4. 	
      the Trading Event, Hicks will earn a cash Incentive Bonus
      equal to the Bonus Price multiplied by 250,000.

	 	 	 
	3.4. 	
      Application and Payment of Incentive Bonus
      Proceeds

	 	 	 
		3.4.1. 	
      Within 48 hours of any Event Date, the Company shall take
      reasonable steps to reserve the applicable Bonus Price with the TSX
      V as the price for a private placement offering of Common Shares to
      Hicks.

	 	 	 
		3.4.2. 	
      Within ten days after the applicable Event Date, Hicks
      shall provide to the Company a good faith estimate of his anticipated income
      tax liability for the amount of the Incentive Bonus and the Company shall
      remit that amount to Hicks in cash within a reasonable period of
    time.

	 	 	 
		3.4.3. 	
      On or about the date that the Company pays to Hicks the
      estimated tax liability referred to in Section 3.4.2, above, and
      subject to approval of the private placement by TSX V, the Company shall
      apply the balance of the proceeds from the Incentive Bonus to the private
      placement referred to in Section 3.4.1, above. If TSX V does not
      conditionally approve such private placement within a reasonable period of
      time, the Company shall remit the balance of the Incentive Bonus in cash
  to Hicks.

	 	 	 
	3.5. 	
      Adjustments of and Restrictions on
    Securities

	 	 	 
		3.5.1. 	
      If and whenever the Common Shares at any time outstanding
      are subdivided into a greater or consolidated into a lesser number of
      common shares, the exercise price of the Options and the amount of any
      Multiplier for any Incentive Bonus that has not yet been earned must be
      decreased or increased proportionately, as the case may be, and upon any
      such subdivision or consolidation, the number of Common Shares deliverable
      upon the exercise of the Options, and the amount of any Multiplier for any
      Incentive Bonus that has not yet been earned, must be increased or
      decreased proportionately, as the case may be.

9

	 	3.5.2. 	
      Any Common Shares issued pursuant to this Agreement will
      be “restricted securities”, as that term is defined in Rule 144(a)(3),
      promulgated by the United States Securities and Exchange Commission under
      the Securities Act of 1933, as amended, and will bear such restrictive
      legends as may be required by the applicable securities laws, rules and
      regulations.

	3.6. 	
      Expenses

	 	 	 
		3.6.1. 	
      The Contractor will be responsible for all costs
      associated with the performance of the Consulting Services, except as
      noted in Paragraphs 3.6.2 through 3.6.4 below.

	 	 	 
		3.6.2. 	
      Unless otherwise agreed by the parties, the Consulting
      Services will be provided at the Company’s office located in Vancouver,
      British Columbia. The Company must provide office space, equipment
      (including necessary computing equipment and software), furniture and
      supporting personnel at the Company’s premises to Hicks at no cost to the
      Contractor.

	 	 	 
		3.6.3. 	
      In the event that the parties agree that the Consulting
      Services will be provided at a location other than Vancouver, British
      Columbia, the Company will pay to the Contractor all reasonable moving
      expenses incurred by Hicks and reimbursed to Hicks by the
    Contractor.

	 	 	 
		3.6.4. 	
      The Contractor will be reimbursed by the Company for out
      of pocket expenses incurred by Hicks on behalf of the Company in the
      course of providing the Services, as supported by copies of receipts and
      other documentation.

	 	 	 
	3.7. 	
      Indemnity by Company

	 	 	 
		
      The Company agrees to indemnify each of the Contractor
      and Hicks from and against any and all actions, causes of action, claims,
      demands or other proceedings made against either or both of the Contractor
      or Hicks in the course of or as a result of this Agreement or because of
      Hicks’ position as a director and officer of the Company on and subject to
      the terms of the Indemnification Agreement attached to this Agreement as
      Schedule “B” .

	 	 	 
	4. 	
      TERM, RENEWAL AND TERMINATION

	 	 	 
	4.1. 	
      Term

	 	 	 
		
      This Agreement will commence on the Consulting Effective
      Date, and, unless otherwise terminated under this Section 4, will
      terminate on the Consulting Termination Date.

10

	4.2. 	
      Renewal

	 	 	 	 	 
		
      The initial term will automatically renew for an
      additional twelve (12) month term unless either party gives ninety (90)
      days’ written notice to the other of its intention not to renew this
      Agreement

	 	 	 	 	 
	4.3. 	
      Termination

	 	 	 	 	 
		4.3.1. 	
      Notwithstanding Paragraph 4.1, this Agreement will be
      terminated:

	 	 	 	 	 
			(a) 	
      without Cause by the Company, upon payment by the Company
      to the Contractor of the Termination Fee and, if they have been earned
      under the terms of Section 3.3, above, prior to the date of termination,
      issuance of the Incentive Shares;

	 	 	 	 	 
			(b) 	
      without Cause by the Contractor, upon thirty (30) days’
      written notice from the Contractor to the Company; or

	 	 	 	 	 
			(c) 	
      with Cause by the Company, immediately upon the Company
      giving notice in writing to the Contractor, which notice must state the
      nature and substance of the Cause.

	 	 	 	 	 
		4.3.2. 	
      Upon termination of this Agreement for any
  reason:

	 	 	 	 	 
			(a) 	
      the Company must immediately pay to the Contractor all
      accrued and unpaid portions of the Consulting Fees due up to the date of
      termination as well as any Expenses properly incurred prior to the date of
      termination;

	 	 	 	 	 
			(b) 	
      the Contractor must, upon receipt of all sums due and
      owing, promptly deliver the following in accordance with the directions of
      the Company:

	 	 	 	 	 
				(i) 	
      a final accounting, reflecting the balance of expenses
      incurred on behalf of the Company as of the date of termination;

	 	 	 	 	 
				(ii) 	
      all documents pertaining to the Company or this
      Agreement, including but not limited to all books of account,
      correspondence and contracts; and

	 	 	 	 	 
				(iii) 	
      all equipment and any other property belonging to the
      Company; and

	 	 	 	 	 
			(c) 	
      the Contractor will cause Hicks to resign as a
      Director.

11

	4.4. 	
      Termination – Change of Control

	 	 	 
		
      If, within 60 days of the occurrence of a Change of
      Control, the Contractor resigns from the Company or the Company terminates
      this Agreement for any reason other than for Cause, the Company must pay
      the Termination Fee to the Contractor.

	 	 	 
	5. 	
      INDEPENDENT CONTRACTOR RELATIONSHIP

	 	 	 
	5.1. 	
      It is expressly agreed that the Contractor is acting as
      an independent contractor in performing the Consulting Services under this
      Agreement.

	 	 	 
	5.2. 	
      Although Hicks will, subject to Vacation Time, be
      available to the Company 80% of his working hours to the Company, Hicks
      need only devote such portion of his time to the provision of the
      Consulting Services as is necessary to complete the Consulting
      Services.

	 	 	 
	5.3. 	
      The Contractor is not precluded from acting in any other
      capacity for any other person, firm or company provided that it does not,
      in the reasonable opinion of the Board, conflict with the Contractor’s
      duties to the Company while providing the Consulting Services.

	 	 	 
	5.4. 	
      The Contractor and Hicks, jointly and severally,
      represent and warrant to the Company that:

	 	 	 
		5.4.1. 	
      each of the Contractor and Hicks have the right to
      perform the Consulting Services without violation of their respective
      obligations to others;

	 	 	 
		5.4.2. 	
      each of the Contractor and Hicks are not bound by any
      agreement or obligation to any other party that will conflict with their
      respective obligations as a Contractor of the Company; and

	 	 	 
		5.4.3. 	
      all advice, information, and documents provided by each
      of the Contractor and Hicks to the Company in the course of providing the
      Consulting Services may be used fully and freely by the Company, unless
      the Contractor or Hicks otherwise advises the Company orally or in writing
      at the time of communication of such information (e.g. information
      provided by the Contractor on a confidential or non-attribution
    basis).

	 	 	 
	5.5. 	
      The remuneration set out at Section 3 herein will be the
      whole of the compensation to the Contractor and Hicks collectively for
      providing the Consulting Services. For avoidance of doubt, the Company
      will not pay any contribution to Canada Pension Plan, employment
      insurance, or federal and provincial withholding taxes, or provide any
      other contributions or benefits, or similar amounts under any federal,
      provincial or state laws, which might be expected in an employer-employee
      relationship, as compensation for the Consulting
  Services.

12

	5.6. 	
      The Contractor is solely responsible for the Contractor’s
      registration and payment of assessments for coverage for Hicks with
      WorkSafeBC or similar requirements under federal, provincial or state laws
      of other jurisdictions, while Hicks is providing the Consulting Services.
      If requested by the Company, the Contractor will provide proof of
      coverage.

	 	 	 
	5.7. 	
      The Contractor and Hicks hereby, jointly and severally,
      indemnify the Company against, and agree to hold it harmless from all
      losses, claims, actions, damages, charges, taxes, penalties, assessments
      or demands (including reasonable legal fees and expenses) which may be
      made by the Canada Revenue Agency, Employment Insurance Plan, the Canada
      Pension Plan, the Workers Compensation Plan, or related plans or
      organizations, or similar bodies or plans under federal, provincial or
      state laws in other jurisdictions, requiring the Company or Hicks to pay
      an amount under the applicable statutes and regulations in relation to any
      Consulting Services provided to the Company pursuant to this Agreement.
      This paragraph will survive termination of this Agreement.

	 	 	 
	6. 	
      CONFIDENTIAL INFORMATION

	 	 	 
	6.1. 	
      All Confidential Information, whether it is developed by
      Hicks and/or the Contractor during its consulting retainer or by others
      employed or engaged by or associated with the Company or its affiliates or
      clients, is the exclusive and confidential property of the Company or its
      affiliates or clients, as the case may be, and will at all times be
      regarded, treated and protected as such, as provided in this
    Agreement.

	 	 	 
	6.2. 	
      As a consequence of the acquisition of Confidential
      Information, the Contractor and Hicks will occupy a position of trust and
      confidence with respect to the affairs and business of the Company. In
      view of the foregoing, it is reasonable and necessary for the Contractor,
      joined by Hicks, to make the following covenants regarding the conduct of
      each of the Contractor and Hicks during and subsequent to the Contractor’s
      retainer by the Company:

	 	 	 
		6.2.1. 	
      At all times during and subsequent to the Contractor’s
      retainer with the Company, neither the Contractor nor Hicks will disclose
      Confidential Information to any person other than as necessary in carrying
      out the Consulting Services, or as may be required by applicable law or
      legal process of discovery, without first obtaining the Company’s consent,
      and the Contractor and Hicks will each take all reasonable precautions to
      prevent inadvertent disclosure of any Confidential Information disclosed
      by the Company to him. This prohibition includes, but is not limited to,
      disclosing or confirming the fact that any similarity exists between the
      Confidential Information and any other
information.

13

	 	6.2.2. 	
      At all times during and subsequent to the Contractor’s
      retainer with the Company, neither the Contractor nor Hicks will use,
      copy, transfer or destroy and Confidential Information other than as
      necessary in carrying out the Consulting Services, or as may be required
      by applicable law or process of discovery, without first obtaining the
      Company’s consent and the Contractor and Hicks will each take all
      reasonable precautions to prevent inadvertent use, copying, transfer or
      destruction of any Confidential Information disclosed by the Company to
      either or both of them.

	 	 	 
	 	6.2.3. 	
      Within ten (10) business days after the termination of
      the Contractor’s retainer for any reason, the Contractor will promptly
      deliver to the Company all property of or belonging to or administered by
      the Company in its custody or Hicks’ custody, including without limitation
      all Confidential Information that is embodied in any form, whether in hard
      copy or on electronic media.

	 	 	 
	 	6.2.4. 	
      The provisions of this Section 6 shall survive the
      expiration or earlier termination of this
Agreement.

	6.3. 	
      Consent to Enforcement. The Contractor and Hicks
      each confirm that all restrictions in this Section 6 are reasonable and
      valid, and any defences to the strict enforcement thereof by the Company
      are waived by the Contractor. Without limiting the generality of the
      foregoing, the Contractor hereby consents to an injunction being granted
      by a court of competent jurisdiction in the event that the Contractor is
      in breach of any of the provisions stipulated in this Section 6. The
      Contractor hereby expressly acknowledges and agrees that injunctive relief
      is an appropriate and fair remedy in the event of a breach of any of the
      said provisions.

	 	 	 
	6.4. 	
      The Contractor’s obligations under this Section 6 will
      remain in effect in accordance with their terms and continue in full force
      and effect despite any breach, repudiation, alleged breach or repudiation,
      or termination of this Agreement. Without limiting the foregoing, the
      Contractor and Hicks each agree that at all times during and subsequent to
      the provision of services to the Company, neither the Contractor nor Hicks
      will use or take advantage of the Confidential Information for the purpose
      of

	 	 	 
		6.4.1. 	
      providing similar management and technical services for
      any other company, or

	 	 	 
		6.4.2. 	
      for a period of one year after the date of expiration or
      any earlier termination of this Agreement, for staking, or otherwise
      acquiring an interest in mineral properties adjacent to the mineral
      properties that the Company has an actual legal or beneficial interest in,
      or that the Company is considering acquiring a legal or beneficial
      interest in at the time the Consulting Services were performed or this
      Agreement expires or is terminated.

14

	7. 	
      GENERAL PROVISIONS

	 	 	 
	7.1. 	
      Assignability. This Agreement is not assignable by
      either party and the Consulting Services must not be provided by any
      person other than Hicks.

	 	 	 
	7.2. 	
      Authorization. The Company represents and warrants
      that it is fully authorized and empowered to enter into this Agreement and
      perform its obligations hereunder, and that performance of this Agreement
      will not violate any agreement between the Company and any other person,
      firm or organization nor breach any provisions of its constating documents
      or governing legislation.

	 	 	 
	7.3 	
      No Other Agreement. This Agreement and the
      Schedules hereto cancel and supersede any existing agreement or other
      arrangement between the Company and the Contractor, other than any prior
      agreements for the purchase of securities in the Company.

	 	 	 
	7.3. 	
      Amendment or Waiver.

	 	 	 
		7.3.1. 	
      This Agreement may not be amended unless such amendment
      is agreed to in writing and signed by the Contractor and an authorized
      officer of the Company.

	 	 	 
		7.3.2. 	
      No waiver by either party hereto of any breach by the
      other party hereto of any condition or provision contained in this
      Agreement to be performed by such other party will be deemed a waiver of
      any similar or dissimilar condition or provision. Any waiver must be in
      writing and signed by the Contractor or an authorized officer of the
      Company, as the case may be.

	 	 	 
	7.4. 	
      Compliance with Policies and Laws. The Contractor
      and Hicks will abide by all the Company’s policies and procedures,
      including without limitation, the Company’s code of conduct. In addition,
      the Contractor and Hicks will abide by all laws applicable to the Company,
      in each jurisdiction that the Company does business, including without
      limitation applicable securities laws, rules and regulations and the rules
      of any stock exchange or market upon which the Common Shares are listed or
      quoted.

	 	 	 
	7.5. 	
      Governing Law. This Agreement will be construed
      and interpreted in accordance with the laws of the Province of British
      Columbia applicable therein, and will be treated in all respects as a
      British Columbia contract. The parties irrevocably attorn to the exclusive
      jurisdiction of the courts of British Columbia with respect to any legal
      proceedings arising under this Agreement.

15

	7.6. 	
      Dispute Resolution. Any dispute or controversy
      occurring between the parties hereto relating to the interpretation or
      implementation of any of the provisions of this Agreement will be resolved
      by arbitration. Such arbitration will be conducted by a single arbitrator
      appointed by agreement between the parties, or, in default of agreement,
      such arbitrator will be appointed in accordance with the provisions of the
      Commercial Arbitration Act of British Columbia or any re-enactment
      or amendment thereof. Any arbitration will be held in the City of
      Vancouver. The rules of procedure to be followed will be the domestic
      rules of procedure of the British Columbia International Commercial
      Arbitration Centre then in force. The decision arrived at by the
      arbitrator will be final and binding and no appeal will lie
    therefrom.

	 	 	 
	7.7. 	
      Notices. Any notice in writing required or
      permitted to be given hereunder must be given by registered mail, postage
      prepaid, mailed in British Columbia to the following addresses, or may be
      delivered by courier or personally.

	 	 	 
		7.7.1. 	
      in the case of the Company:

	 	 	 
			
      ARGENTEX MINING CORPORATION

			
      602 - 1112 West Pender Street 
Vancouver, B.C. V6E 2S1
      
Fax: 604.568.1540

	 	 	 
		7.7.2. 	
      in the case of the Contractor and/or Hicks:

	 	 	 
			
      FRONTERA GEOLOGICAL SERVICES LTD. or KEN
    HICKS

			
      1234 Doran Road 
North Vancouver

			
      British Columbia Canada V7K 1M7

	 	 	 
		
      Any notice delivered by courier or personally is
      effective on the actual date of delivery. Any notice delivered by mail as
      aforesaid is deemed to have been received by the person to whom it is
      addressed on the 4th business day after and excluding the date of mailing.
      Either party may change its address for giving of notices hereunder by
      notice in writing to the other party.

	 	 	 
	7.8. 	
      Independent Legal Advice. The Company has obtained
      legal advice concerning this Agreement and has requested that the
      Contractor and Hicks both obtain independent legal advice with respect to
      this Agreement. The Contractor hereby represent and warrants to the
      Company that both the Contractor and Hicks have been advised to obtain
      independent legal advice, and that, prior to the execution of this
      Agreement, they have obtained independent legal advice or have, in their
      discretion, knowingly and willingly elected not to do so

	 	 	 
	7.9. 	
      Severability. If any provision contained herein is
      determined to be void or unenforceable for any reason, in whole or in
      part, it will not be deemed to affect or impair the validity of any other
      provision contained herein and the remaining provisions will remain in
      full force and effect to the fullest extent permissible by
  law.

16

	7.10. 	
      Currency. Except as expressly provided in this
      Agreement, all amounts in this Agreement are stated and will be paid in
      Canadian currency.

	 	 	 
	7.11. 	
      Further Assurances. Each of the Contractor and the
      Company will do, execute and deliver, or will cause to be done, executed
      and delivered, all such further acts, documents and things as the
      Contractor or the Company may reasonably require for the purposes of
      giving effect to this Agreement.

	 	 	 
	7.12. 	
      Counterparts/Facsimile Execution. This Agreement
      may be executed in several counterparts and each counterpart will together
      constitute one original document.

	 	 	 
	7.13. 	
      Parties’ Acknowledgement. The parties hereto
      hereby acknowledge that:

	 	 	 
		7.13.1. 	
      sufficient time was provided to review this Agreement
      thoroughly;

	 	 	 
		7.13.2. 	
      the terms of this Agreement and the obligations hereunder
      have been read and are understood; and

	 	 	 
		7.13.3. 	
      a copy of this Agreement has been received by each of the
      parties.

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

17

ARGENTEX MINING CORPORATION

	Per: 	/s/ Jenna Hardy 	 
	  	Authorized Signatory 	 

 

FRONTERA GEOLOGICAL SERVICES LTD.

	Per: 	/s/ Ken Hicks 	 
	  	Ken Hicks, President 	 

KEN HICKS joins in this Agreement in order to confirm his
agreement with, and his joinder in, the covenants and representations and
warranties made by him in the foregoing Agreement, all as of the Consulting
Effective Date (as defined in the Agreement). 

	SIGNED, SEALED and DELIVERED by 	) 	  
	KEN HICKS in the presence of: 	) 	  
	  	) 	  
	  	) 	  
	Signature 	) 	  
	  	) 	/s/
      Ken Hicks 
	Print Name 	) 	KEN HICKS 
	  	) 	  
	Address 	) 	  
	  	) 	  
	  	) 	  
	  	) 	  
	Occupation 	) 	  

Schedule A – List of Duties and Responsibilities

Without limiting the general services to be provided by the
President, the President shall provide the following specific services: 

1          provide
and administer good corporate governance and governance practices, under the
supervision of the Company’s Board of Directors, for the benefit of the Company
and in accordance with all regulatory requirements; 

2.           provide
overall direction, leadership and vision to the Company in all technical and
operational aspects, including acting as the Company’s Qualified Person for
technical disclosure; 

3.           supervise
the operation of the various Company projects, as approved by the Board, and in
coordination with the Executive VP Corporate Development, seek out, evaluate
and, where practicable, negotiate new business opportunities for the Company;

4.          
ensure the accurate and timely reporting of all material changes in the affairs
of the Company and the material facts related to the Company, in accordance with
applicable securities legislation and regulations, and administer and assist
with relations with all regulatory agencies, relations with the Company’s
auditors, relations with the Company’s legal services and the Company’s public
and investor relations programs, in effect being responsible for all aspects
related to disclosure controls and procedures, preparation and filing of
periodic reports and material change reports; 

5.           help
provide overall direction and supervision of the Company’s technical work
programs, including reporting on the results thereof to the Board of Directors,
and to the public in accordance with applicable securities legislation; 

6.          
administer and assist in the coordination of all Company development programs
including all technical operations and in the coordination of the services and
resources that are necessarily incidental thereto; 

7.           in
coordination with the Executive VP Corporate Development, administer and assist
with relations with all regulatory agencies, relations with the Company’s
auditors, relations with the Company’s legal services and the Company’s public
and investor relations programs; 

8.           in
consultation with the Executive VP Corporate Development supervise hiring of the
competent personnel and consultants required for the technical aspects of the
operation of the Company’s business and manage the efficient performance of
personnel; 

9.           administer
and assist with all other Company support services and perform such other
activities as are necessary or incidental to the Officer’s position; and 

10.          conduct
or carry out other duties, responsibilities and special projects as directed by
the Company's Board of Directors.

REPORTS TO: Board of Directors 

Schedule B – Form of Indemnity

INDEMNIFICATION AGREEMENT

          THIS
AGREEMENT (“Agreement”) made and entered into as of the ___ day of
_______, 20___ to be effective as of that date by and between Argentex Mining
Corporation, a Delaware corporation (the “Company”), Frontera Geological
Services Ltd. and Ken Hicks (hereafter, jointly and severally, the
“Indemnitee”). 

RECITALS:

          WHEREAS,
highly competent persons have become more reluctant to serve publicly-held
corporations as directors or officers, or in other capacities, unless they are
provided with adequate protection through insurance or adequate indemnification
against inordinate risks of claims and actions against them arising out of their
service to, and activities on behalf of, the corporation; this is because such
persons in service to corporations are being increasingly subjected to expensive
and time-consuming litigation relating to, among other things, claims that
traditionally would have been brought only against the corporation or business
enterprise itself; and 

          WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that, to
attract and retain qualified individuals, the Company will attempt to maintain
on an ongoing basis, at its sole expense, liability insurance to protect persons
serving the Company and its subsidiaries from certain liabilities; and 

          WHEREAS,
the Board has determined that the increased difficulty in attracting and
retaining such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there
will be increased certainty of such protection in the future; and 

          WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify, and to advance expenses on behalf of, such persons
to the fullest extent permitted by applicable law so that they will serve or
continue to serve the Company free from undue concern that they will not be so
indemnified; and

           WHEREAS,
this Agreement is separate from and in addition to the Bylaws of the Company and
any resolutions adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and

          WHEREAS,
each of Section 145 of the General Corporation Law of the State of Delaware
(“DGCL”) and the Bylaws of the Company is nonexclusive, and therefore
contemplates that contracts may be entered into with respect to indemnification
of directors, officers, employees and agents; and 

          WHEREAS,
Indemnitee is willing to serve for or on behalf of the Company on the condition
that Indemnitee be so indemnified; 

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

2

          1.      Services
by Indemnitee. Indemnitee agrees to continue to serve as a director,
officer, employee or agent of the Company, provided that Indemnitee may at any
time and for any reason resign from such position and the Company will have no
obligation under this Agreement to continue Indemnitee in such position
(subject, in the case of any resignation by Indemnitee or termination by the
Company, to any rights and obligations they may have under contracts other than
this Agreement or under applicable law). This Agreement may not be deemed an
employment contract between the Company (or any of its subsidiaries) and
Indemnitee. This Agreement will continue in force after Indemnitee has ceased to
serve as a director, officer, employee or agent of the Company. 

          2.      Indemnification-General.
The Company will indemnify, and advance Expenses (as hereinafter defined) to,
Indemnitee (i) as provided in this Agreement, and (ii) to the fullest extent
permitted by applicable law in effect on the date hereof and as amended from
time to time (but in the case of any such amendment, only to the extent that
such amendment permits the Company to provide broader indemnification rights
than were permitted prior to the amendment). The rights of Indemnitee provided
under the preceding sentence include, but is not limited to, the rights set
forth in the other Sections of this Agreement. 

          3.      Proceedings
Other Than Proceedings by or in the Right of the Company. The Company
will indemnify Indemnitee under this Section 3 if, by reason of Indemnitee’s
Corporate Status (as hereinafter defined) or by reason of any act done or not
done by Indemnitee by reason of or on account of Indemnitee’s Corporate Status,
Indemnitee is, or is threatened to be made, a party to or a participant in any
threatened, pending, or completed Proceeding (as hereinafter defined), other
than a Proceeding by or in the right of the Company. Pursuant to this Section 3,
the Company will indemnify Indemnitee against all Expenses, judgments,
penalties, fines, liabilities and amounts paid in settlement actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with
such Proceeding or any claim, issue or matter therein, if Indemnitee acted in
Good Faith.

          4.      Proceedings
by or in the Right of the Company. The Company will indemnify
Indemnitee under this Section 4 if, by reason of Indemnitee’s Corporate Status
or by reason of any act done or not done by Indemnitee by reason of or on
account of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be
made, a party to or a participant in any threatened, pending or completed
Proceeding brought by or in the right of the Company to procure a judgment in
its favor. Pursuant to this Section 4, the Company will indemnify Indemnitee
against all Expenses actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with such Proceeding if Indemnitee acted in
Good Faith; provided that if applicable law so provides, no indemnification
against such Expenses may be made in respect of any claim, issue or matter in
such Proceeding for which Indemnitee is adjudged to be liable to the Company,
unless and to the extent that the court in which such Proceeding has been
brought or is pending, determines that Indemnitee is entitled to such
indemnification. 

3

          5.     
Indemnification for Expenses of a Party Who is Wholly or Partly
Successful. Notwithstanding any other provision of this Agreement, to
the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status or by
reason of any act done or not done by Indemnitee by reason of or on account of
Indemnitee’s Corporate Status, a party to (or a participant in) and is
successful, on the merits or otherwise, in any Proceeding (including dismissal
without prejudice), the Company will indemnify Indemnitee, to the maximum extent
permitted by law, against all Expenses actually and reasonably incurred by
Indemnitee or on Indemnitee’s 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 will indemnify Indemnitee against all Expenses actually
and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with each successfully resolved claim, issue or matter. 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, will be deemed to be
a successful result as to such claim, issue or matter.

          6.      Indemnification
for Other Expenses. Notwithstanding any other provision of this
Agreement, the Company will indemnify Indemnitee against all Expenses actually
and reasonably incurred or suffered by Indemnitee or on Indemnitee’s behalf if
Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness or
otherwise involved in any manner in any threatened, pending or completed
Proceeding to which Indemnitee neither is, nor is threatened to be made, a
party; provided that Indemnitee may not otherwise be compensated or reimbursed
for the value of Indemnitee's time spent as such unless (i) Indemnitee no longer
serves as an officer, director, employee or agent of the Company and (ii)
Indemnitee has spent more than ten business days as a witness or other non-party
participant in such Proceeding by reason of Indemnitee’s prior Corporate Status.
If Indemnitee is, or is threatened to be made, a party to such Proceeding, then
the provisions of Section 3, 4 or 5, as appropriate, will apply in accordance
with the terms thereof. 

          7.      Advancement
of Expenses. Notwithstanding any provision of this Agreement to the
contrary, the Company will advance all reasonable Expenses incurred by or on
behalf of Indemnitee in connection with any Proceeding referred to in Section 3,
4, 5 or 6 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 Proceeding. Such
statement or statements must reasonably evidence the Expenses incurred by
Indemnitee. Indemnitee hereby undertakes to repay any Expenses advanced if it is
ultimately determined by final judgment of a court of competent jurisdiction
that Indemnitee is not entitled to be indemnified against such Expenses. Any
advances and undertakings to repay pursuant to this Section 7 will be unsecured
and interest free. Advances will include any and all reasonable Expenses
incurred by Indemnitee pursuing an action to enforce this Agreement, including
Indemnitee’s right of advancement, and Expenses incurred in preparing and
forwarding statements to the Company to support the advances claimed. 

4

          8.      Procedure
for Determination of Entitlement to Indemnification. 

          (a)      To
obtain indemnification under this Agreement, Indemnitee must 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 such
indemnification. The Secretary of the Company will, promptly upon receipt of
such a request for indemnification, advise the Board in writing that Indemnitee
has requested indemnification. 

          (b)      The
person, persons or entity (the “Reviewing Party”) who will determine
whether Indemnitee is entitled to indemnification in the first instance will be
(i) the Board, acting by a majority vote of Disinterested Directors (as
hereinafter defined), whether or not such majority constitutes a quorum of the
Board, (ii) a committee of Disinterested Directors designated by a majority vote
of the Disinterested Directors, whether or not such majority constitutes a
quorum, (iii) if a majority vote of Disinterested Directors so orders, a written
opinion of Independent Counsel (as hereinafter defined) or (iv) if there are no
Disinterested Directors, or if Indemnitee so directs in writing at the time a
request for indemnification is made, a written opinion of Independent Counsel.
Promptly after making the determination the Reviewing Party will render its
written opinion to the Company and Indemnitee as to whether and to what extent
Indemnitee should be permitted to be indemnified under this Agreement. If the
Reviewing Party determines that Indemnitee is entitled to indemnification, the
Company will make payment within ten days after such determination. Indemnitee
must cooperate with the Reviewing Party with respect to Indemnitee’s entitlement
to indemnification, including providing to the Reviewing Party upon reasonable
advance request any documentation or information that is not privileged or
otherwise protected from disclosure and that is reasonably available to
Indemnitee and reasonably necessary to such determination. The Company will pay
all reasonable costs or expenses (including attorneys’ fees and disbursements)
incurred by Indemnitee in so cooperating with the Reviewing Party (irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the
Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

          (c)      If
the Disinterested Directors or Indemnitee directs that an Independent Counsel be
appointed, the Board will select the Independent Counsel, and promptly following
such selection the Company will give written notice to Indemnitee advising
Indemnitee of the identity of the Independent Counsel so selected. Within ten
days after such written notice of selection has been given, Indemnitee may
deliver to the Company a written objection to such selection; provided that such
objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of “Independent Counsel” as defined in
Section 18, and the objection must set forth with particularity the factual
basis for such assertion. Absent a proper and timely objection, the person so
selected will act as Independent Counsel. If such written objection is so made,
the Independent Counsel so selected may not serve as Independent Counsel unless
and until such objection is withdrawn or a court has determined that such
objection is without merit. If within 45 days after submission by Indemnitee of
a written request for indemnification pursuant to

5

Section 8(a) that directs the Board to
appoint an Independent Counsel no Independent Counsel has been selected and not
objected to, either the Company or Indemnitee may petition a court of competent
jurisdiction for the appointment of such person or entity as Independent Counsel
as the court may designate, and the person with respect to whom all objections
are so resolved or the person so appointed by the court will then act as
Independent Counsel under this Agreement. Upon the due commencement of any
judicial proceeding or arbitration pursuant to Section 10(a), the Independent
Counsel will be discharged and relieved of any further responsibility in such
capacity (subject to the applicable standards of professional conduct then
prevailing). 

          9.      Presumptions;
Reliance and Effect of Certain Proceedings. 

          (a)      In
making a determination with respect to entitlement to indemnification hereunder,
the Reviewing Party will presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 8(a), and the Company will have the burden of proof
to overcome that presumption by clear and convincing evidence in connection with
the making by any person, persons or firm of any determination contrary to that
presumption. Neither the failure of the Reviewing Party to have made a
determination prior to the commencement of any action pursuant to this Agreement
that indemnification is proper in the circumstances because Indemnitee has met
the applicable standard of conduct, nor any determination thereby that
Indemnitee has not met such applicable standard of conduct, will be a defense or
admissible as evidence in any action for any purpose or create a presumption
that Indemnitee has not acted in Good Faith or met any other applicable standard
of conduct. 

          (b)      If
the Reviewing Party does not make a determination within 60 days after receipt
by the Company of the request therefor, the requisite determination of
entitlement to indemnification will be deemed to have been made and Indemnitee
will be entitled to such indemnification, absent (i) 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, or (ii) a prohibition of such indemnification under
applicable law; provided that such 60-day period may be extended for a
reasonable time, not to exceed an additional 30 days, if the Reviewing Party in
good faith requests in writing such additional time for the obtaining or
evaluating of documentation and/or information relating thereto. 

          (c)      The
termination of any Proceeding or of any claim, issue or matter therein , by
judgment, order, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo contendere or its equivalent, will not
(except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that
(i) Indemnitee did not act in Good Faith or failed to meet any other applicable
standard of conduct, or (ii) a court has determined that indemnification is not
permitted under applicable law. 

6

          (d)      The
knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of the Enterprise will not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement. 

          10.     
Remedies of Indemnitee. 

          (a)      If
(i) a determination is made pursuant to Section 8 that Indemnitee is not
entitled to indemnification under this Agreement, (ii) advancement of Expenses
is not timely made pursuant to Section 7, (iii) no determination of entitlement
to indemnification shall have been made pursuant to Section 8(b) within 90 days
after receipt by the Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to Section 5, Section 6, the last sentence
of Section 8(b) or the last sentence of Section 18(j) within ten days after
receipt by the Company of a written request therefor, or (v) payment of
indemnification pursuant to Section 3 or Section 4 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 by a court of
competent jurisdiction of Indemnitee’s entitlement to such indemnification or
advancement of Expenses. Alternatively, Indemnitee, at Indemnitee’s 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 10(a); provided that
the foregoing clause shall not apply in respect of a proceeding brought by
Indemnitee to enforce Indemnitee’s rights under Section 5. The Company shall not
oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

          (b)      If
a determination shall have been made pursuant to Section 8(b) that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration
commenced pursuant to this Section 10 shall be conducted in all respects as a de
novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced
by reason of that adverse determination. 

          (c)      If
a determination shall have been made pursuant to Section 8(b) 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 10,
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee’s statements not materially
misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law. 

          (d)      If
Indemnitee, pursuant to this Section 10, seeks a judicial adjudication of or an
award in arbitration to enforce Indemnitee’s 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 against, any and all expenses
(of the types described in the definition of Expenses in Section 18 of this
Agreement) actually and reasonably incurred by Indemnitee in such judicial
adjudication or arbitration unless it shall be finally determined by the court
or arbitrator before which such claim was brought that it was brought in bad

7

faith. Even 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 advancement of Expenses
sought, the expenses incurred by Indemnitee in connection with such judicial
adjudication or arbitration shall be paid in full. 

          (e)      The
Company shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 10 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and hereby
stipulates, and shall so stipulate in any such court or before any such
arbitrator, that the Company is bound by all the provisions of this Agreement.

          11.      Notification
and Defense of Proceeding. 

          (a)      Indemnitee
shall promptly notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document
relating to any Proceeding or matter that may be subject to indemnification or
advancement of Expenses pursuant to this Agreement, but subject to the last
sentence of Section 11(c), the omission so to notify the Company will not
relieve it from any liability that it may have to Indemnitee. 

          (b)      In
the event Indemnitee notifies the Company of the commencement of a Proceeding,
the Company will be entitled to participate in the Proceeding at its own
expense, and except as otherwise provided below, if the Company so wishes, it
may assume the defense thereof with counsel reasonably satisfactory to
Indemnitee. After notice from the Company to Indemnitee of its election to
assume the defense of any Proceeding, the Company will not be liable to
Indemnitee under this Agreement or otherwise for any Expenses subsequently
incurred by Indemnitee in connection with the defense of such Proceeding other
than reasonable costs of investigation or as otherwise provided below.
Indemnitee shall have the right to retain Indemnitee’s own counsel in such
Proceeding, but Indemnitee shall be obligated to pay all Expenses related
thereto incurred by Indemnitee after notice from the Company of its assumption
of the defense unless: (i) the retention of counsel by Indemnitee has been
authorized by the Company, (ii) Indemnitee has reasonably determined, based upon
a written opinion of Indemnitee’s counsel, that there is a substantial
possibility that a conflict of interest will arise between Indemnitee and the
Company in the defense of the Proceeding, (iii) after a Change of Control (as
hereinafter defined), the retention of counsel by Indemnitee has been approved
by an Independent Counsel, or (iv) the Company shall not within 60 calendar days
have retained counsel reasonably satisfactory to Indemnitee to assume the
defense of such Proceeding, in each of which cases all Expenses incurred by
Indemnitee in connection with such Proceeding shall be borne by the Company. In
the event separate counsel is retained by Indemnitee pursuant to this Section
11(b), the Company shall cooperate with Indemnitee with respect to the defense
of the Proceeding, including making documents, witnesses and other reasonable
information related to the defense available to Indemnitee and such separate
counsel pursuant to joint-defense agreements or confidentiality agreements, as
appropriate. Notwithstanding any provision herein to the contrary, the Company
shall not be entitled to assume the defense of any Proceeding brought by or
on

 8

  

  
    behalf of the Company or as to which Indemnitee shall have made the determination
      provided for in (ii) above. 

              (c)      The
      Company shall not be liable to indemnify Indemnitee under this Agreement
      or otherwise for any amounts paid in settlement of any Proceeding effected
      without the Company’s prior written consent; provided that if a Change
      of Control has occurred, the Company shall be liable for indemnification
      of Indemnitee for amounts paid in settlement if an Independent Counsel has
      approved the settlement. The Company shall not settle any Proceeding in
      any manner that would impose any penalty, liability or limitation on Indemnitee
      without Indemnitee’s prior written consent; provided that the Company
      shall not be required to obtain the consent of Indemnitee to the settlement
      of any Proceeding the Company has undertaken to defend if the settlement
      grants Indemnitee a complete and unqualified release in respect of the potential
      liability. The Company shall not be liable for any amount paid by Indemnitee
      in settlement of any Proceeding that is not defended by the Company unless
      the Company has consented to such settlement. Neither the Company nor Indemnitee
      will unreasonably withhold, condition or delay their consent to any proposed
      settlement. The Company shall have no obligation to indemnify Indemnitee
      under this Agreement with regard to any judicial award issued in a Proceeding,
      or any related Expenses of Indemnitee, if the Company was not given a reasonable
      and timely opportunity, at its expense, to participate in the defense of
      such Proceeding, except to the extent the Company was not materially prejudiced
      thereby.

  

           12.
       Nonexclusivity; Insurance; Subrogation. 

            (a)     
    The rights of indemnification and to receive advancement 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
    Company’s Articles of Incorporation, the Company’s Bylaws, any other
    agreement, any vote of stockholders, any resolution of the Board, 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 Indemnitee’s Corporate
    Status prior to such amendment, alteration or repeal. To the extent that a
    change in the DGCL, or the manner in which the DGCL is judicially construed,
    permits greater indemnification or advancement of Expenses than would be afforded
    currently under the Company’s Articles of Incorporation, Bylaws and this
    Agreement, it is the agreement and intent of the parties hereto that Indemnitee
    shall enjoy by this Agreement the greater benefits so afforded by such change.
    No right or remedy herein conferred is intended to be exclusive of any other
    right or remedy, and every other right and remedy shall be cumulative and
    in addition to every right and remedy given hereunder or now or hereafter
    existing at law or in equity or otherwise. The assertion or employment of
    any right or remedy hereunder, or otherwise, shall not prevent the concurrent
    assertion or employment of any other right or remedy. 

9

          (b)      The
Company shall use reasonable best efforts to provide directors’ and officers’
liability insurance coverage for the benefit of Indemnitee and Indemnitee's
estate at all times while Indemnitee continues to serve as a director or an
officer of the Company on the same terms and in the same amount as the Company
then provides for its other directors and officers. Upon the termination of
Indemnitee’s service as a director or officer of the Company and for a period
thereafter equal to the shorter of (i) six years or (ii) the expiration of the
applicable statute of limitations (the “Post-Termination Coverage Period”), the
Company will use reasonable best efforts to maintain directors’ and officers’
liability insurance coverage for its directors and officers in a manner that
will continue to provide coverage for Indemnitee’s acts and omissions during
Indemnitee's service as a director or officer of the Company. Notwithstanding
the foregoing sentences of this Section 12(b), from and after the occurrence of
a Change of Control, the Company shall be obligated to use best efforts to
maintain directors’ and officers’ liability insurance coverage while Indemnitee
continues to serve as a director or an executive officer of the Company and
during the Post-Termination Coverage Period on terms and in amounts
substantially similar to those maintained by the Company immediately prior to
the Change of Control. 

          (c)      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 documents required and take all actions necessary to
secure such rights, including execution of such documents as are necessary to
enable the Company to bring suit to enforce such rights. 

          (d)      The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable (or for which advancement is provided hereunder)
hereunder if and to the extent that Indemnitee has already received payment of
such amounts under any insurance policy, contract, agreement or otherwise. 

          (e)      The
Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee
due to the fact that Indemnitee is or was serving at the request of the Company
as a director, officer, employee or agent of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise shall be reduced
by any amount Indemnitee has already received as indemnification or advancement
of expenses from such other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise.

          13.      Duration
of Agreement. This Agreement shall continue until and terminate upon
the later of: (i) the expiration of the applicable limitations periods as to all
possible claims in respect of which Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder upon commencement of a
related Proceeding, or (ii) the final termination of any Proceeding then pending
in respect of which Indemnitee is granted rights of indemnification or
advancement of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 10 relating thereto. This Agreement shall be binding upon
the Company and its successors and assigns and shall inure to the benefit of
Indemnitee and Indemnitee’s heirs, executors and administrators. 

10

          14.      Severability.
If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever: (i) 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 shall remain enforceable to the fullest extent permitted by law,
(ii) such provision or provisions shall be deemed reformed to the extent
necessary to conform to applicable law and to give the maximum effect to the
intent of the parties hereto, and (iii) 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. 

          15.      Exception
to Right of Indemnification or Advancement of Expenses. Notwithstanding
any other provision of this Agreement, but subject to Section 10, Indemnitee
shall not be entitled to indemnification or advancement of Expenses under this
Agreement with respect to any Proceeding brought by Indemnitee, or any claim
therein, unless the bringing of such Proceeding or making of such claim shall
have been approved by the Board. 

          16.     
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. Only one
such counterpart signed by the party against whom enforceability is sought needs
to be produced to evidence the existence of this Agreement. 

          17.     
Headings. The headings of the Sections 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. 

          18.      Definitions.
For purposes of this Agreement: 

          (a)      “Affiliate”
means with respect to any person or entity, any other

person or entity that, directly or
indirectly, through one or more intermediaries, controls, is controlled by or is
under common control with, such person or entity. 

          (b)      “Board”
shall have the meaning given such term in the recitals at the beginning of this
Agreement. 

          (c)      “Change
of Control” shall mean the occurrence of any of the following events: 

          (i)      the
acquisition, other than from the Company, by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934 (the “Exchange Act”)) of beneficial ownership of 20% or more of
either the then outstanding shares of common stock of the Company or the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors; provided that any
acquisition by the Company or any of its subsidiaries, or any corporation with
respect to

11

which following such acquisition, more
than 50% of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the common stock and voting securities of the Company
immediately prior to such acquisition in substantially the same proportion as
their ownership, immediately prior to such acquisition, of the then outstanding
shares of common stock of the Company or the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors, as the case may be, shall not constitute a Change of
Control; 

          (ii)     individuals,
who, as of the date of the execution of this Agreement, constituted the Board
(the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided that any individual becoming a director subsequent to
such date whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
directors of the Company (as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Exchange Act); or 

          (iii)      approval
by the stockholders of the Company of a reorganization, merger or consolidation
of the Company and the satisfaction of all conditions precedent to the
transaction, in each case, with respect to which the individuals and entities
who were the respective beneficial owners of the common stock and voting
securities of the Company immediately prior to such reorganization, merger or
consolidation do not, following such reorganization, merger or consolidation,
beneficially own, directly or indirectly, more than 50% of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such
reorganization, merger or consolidation, or a complete liquidation or
dissolution of the Company or of the sale or other disposition of all or
substantially all of the assets of the Company. 

     (d)     
“Corporate Status” describes the status of a person who is or was a
director, officer, employee, agent or fiduciary of an Enterprise. 

     (e)      “Disinterested
Director” means a member of the Board who is not and was not a party to the
Proceeding in respect of which indemnification is sought by Indemnitee. 

12

          (f)     
“Enterprise” shall mean the Company and any other corporation,
partnership, limited liability company, joint venture, trust, employee benefit
plan or other entity, enterprise or association of which Indemnitee is or was
serving at the request of the Company as a director, manager, officer, employee,
agent or fiduciary. 

          (g)     “Expenses”
shall include all reasonable attorneys’ fees, retainers, court costs, transcript
costs, fees of experts, fees of witnesses other than Indemnitee, travel and
lodging expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, and all other reasonable disbursements
or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing
to be a witness in, or otherwise participating in, a Proceeding, including,
subject to the advancement provisions of Section 7 hereof, a Proceeding brought
by Indemnitee to enforce this Agreement. Expenses also shall include expenses
reasonably incurred in connection with any appeal resulting from any Proceeding,
including without limitation, any premium, security for, and other costs
relating to any cost bond, supersedeas bond, or other appeal bond or its
equivalent. 

          (h)     
“Good Faith” shall mean Indemnitee having acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal Proceeding, having
had reasonable cause to believe Indemnitee’s conduct was lawful. For purposes of
any determination of Good Faith, Indemnitee shall be deemed to have acted in
Good Faith if Indemnitee’s action is based on the records or books of account of
the Enterprise, including financial statements, or on information supplied to
Indemnitee by a committee of the Board upon which Indemnitee does not serve as
to matters within its designated authority, or the officers, agents or employees
of the Enterprise in the course of their duties, or on the advice of legal
counsel for the Enterprise or on information or records given or reports made to
the Enterprise by an independent certified public accountant or by an appraiser,
financial advisor or other expert or professional selected with reasonable care
by the Enterprise. The provisions of this Section 18(i) shall not be deemed to
be exclusive or to limit in any way the other circumstances in which Indemnitee
may be deemed to have met the applicable standard of conduct set forth in this
Agreement. 

          (i)      “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years
has been, retained to represent: (i) the Company or any Affiliate thereof or
Indemnitee (other than with respect to matters concerning Indemnitee’s rights
under this Agreement, or the rights of other indemnitees under similar
indemnification agreements), or (ii) any other party to the 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 the Company or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement. The Company shall promptly
pay the reasonable fees and expenses of the Independent Counsel referred to
above and shall fully indemnify such counsel against any and all

13

Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant
hereto. 

          (j)     
“DGCL” shall have the meaning given such term in the recitals at the
beginning of this Agreement. 

          (k)      "Post-Termination
Coverage Period" shall have the meaning given in Section 12(b) hereof. 

          (l)     “Proceeding”
includes any claim seeking money or other relief, however made or presented, as
well as any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought
by or in the right of the Company or otherwise and whether civil, criminal,
administrative or investigative, in which Indemnitee was, is or will be involved
as a party or otherwise, by reason of the fact that Indemnitee is or was a
director or officer of the Company, by reason of any action taken by Indemnitee
or of any inaction on Indemnitee’s part while acting in a Corporate Status, or
by reason of the fact that Indemnitee is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, limited liability company, joint venture, trust or other
enterprise, in each case whether or not Indemnitee is acting or serving in any
such capacity at the time any liability or expense is incurred for which
indemnification or advancement of expenses can be provided under this
Agreement.

          (m)     
“Reviewing Party” shall have the meaning given such term in Section
8(b). 

          (n)     
References to “other enterprise” shall include employee benefit plans;
references to “fines” shall include any excise tax assessed with respect to any
employee benefit plan; references to “serving at the request of the Company”
shall include any service as a director, officer, employee or agent of an
Enterprise that imposes duties on, or involves services by, such director,
officer, employee or agent with respect to an employee benefit plan, as
participants or beneficiaries; and an Indemnitee who acted in good faith and in
a manner Indemnitee reasonably believed to be in the best interests of the
participants and beneficiaries of an employee benefit plan shall be deemed to
have acted in Good Faith. 

          19.      Enforcement.

          (a)     The
Company expressly confirms and agrees that it has entered into this Agreement
and assumed the obligations imposed on it hereby in order to induce Indemnitee
to serve or continue to serve in a Corporate Status as requested by the Company,
and the Company acknowledges that Indemnitee is relying upon this Agreement in
serving in a Corporate Status. 

          (b)     
This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties
hereto with respect to the subject matter hereof. 

14

          (c)      The
right to be indemnified or to receive advancement of Expenses under this
Agreement (i) is a contract right based upon good and valuable consideration,
pursuant to which Indemnitee may sue, (ii) is and is intended to be retroactive
to the date Indemnitee assumed a Corporate Status and shall be available as to
events occurring prior to the date of this Agreement, and (iii) shall continue
after any rescission or restrictive modification of this Agreement as to events
occurring prior thereto. 

          20.     
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. 

          21.      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 the 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:

          FRONTERA
GEOLOGICAL SERVICES LTD. or Ken
Hicks
          1234
Doran
Road 
          North
Vancouver 
          British
Columbia Canada V7K 1M7 

(b)     
If to the Company, to:

          ARGENTEX
MINING
CORPORATION
          602
– 1112 West Pender
Street 
          Vancouver,
B.C. V6E
2S1 
          Fax:
604.568.1540 

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

          22.      Contribution.
To the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to
the amount incurred by Indemnitee, whether for judgments, fines, penalties,
excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in
connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all
of the circumstances of such Proceeding in order to reflect (i) the relative
benefits received by the Company and Indemnitee as a result of the event(s)
and/or transaction(s) giving rise to such Proceeding, and/or (ii) the relative
fault of the Company (and its directors, officers, employees and agents) and
Indemnitee in connection with such event(s) and/or transaction(s). 

15

          23.      Governing
Law. This Agreement and the legal relations between the parties shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its conflict of laws rules. The parties
irrevocably attorn to the exclusive jurisdiction of the courts of the State of
Delaware with respect to any legal proceedings arising here from. 

          24.     
Miscellaneous. All references in this Agreement to Sections shall be
deemed to be references to Sections of this Agreement unless the context
indicates otherwise. 

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

ARGENTEX MINING
CORPORATION

	 	By: 	 
	 	Name: 	 
	 	Title: 	 

FRONTERA GEOLOGICAL SERVICES
LTD.

 

	 	By: 	 
	 	Name: 	 
	 	Title: 	 

 

__________________________________________________
KEN
HICKSExhibit 10.1

 

EXECUTION
VERSION

 

 

PURCHASE AGREEMENT

 

between

 

DRAWBRIDGE SPECIAL OPPORTUNITIES FUND LP

 

and

 

CLST ASSET I, LLC

 

 

Dated as of November 10, 2008

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  PURCHASE AND
  SALE OF THE FCC EQUITY INTERESTS

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Purchase and
  Sale of the FCC Equity Interests

  	
  1

  
	
  SECTION 1.02.

  	
  Transactions
  To Be Effected on the Purchase Date

  	
  1

  
	
  SECTION 1.03.

  	
  Purchase
  Price

  	
  2

  
	
  SECTION 1.04.

  	
  Certain
  Payments from Obligors

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  REPRESENTATIONS
  AND WARRANTIES RELATING TO THE SELLER AND THE FCC EQUITY INTERESTS

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Organization,
  Standing and Power

  	
  2

  
	
  SECTION 2.02.

  	
  Authority;
  Execution and Delivery; Enforceability

  	
  2

  
	
  SECTION 2.03.

  	
  No
  Conflicts; Consents

  	
  3

  
	
  SECTION 2.04.

  	
  The FCC
  Equity Interests

  	
  3

  
	
  SECTION 2.05.

  	
  Receivables

  	
  3

  
	
  SECTION 2.06.

  	
  Breach of
  Certain Representations and Warranties; Purchase

  	
  3

  
	
  SECTION 2.07.

  	
  Solvency

  	
  4

  
	
  SECTION 2.08.

  	
  Nature of
  Purchases

  	
  4

  
	
  SECTION 2.09.

  	
  Brokers or
  Finders

  	
  4

  
	
  SECTION 2.10.

  	
  Proceedings

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS
  AND WARRANTIES RELATING TO THE COMPANY

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Organization
  and Standing

  	
  4

  
	
  SECTION 3.02.

  	
  Equity of
  the Company

  	
  5

  
	
  SECTION 3.03.

  	
  No
  Conflicts; Consents

  	
  5

  
	
  SECTION 3.04.

  	
  [Reserved]

  	
  5

  
	
  SECTION 3.05.

  	
  Assets of
  the Company

  	
  5

  
	
  SECTION 3.06.

  	
  Contracts

  	
  6

  
	
  SECTION 3.07.

  	
  Employees
  and Benefit Plans

  	
  6

  
	
  SECTION 3.08.

  	
  Taxes

  	
  6

  
	
  SECTION 3.09.

  	
  Proceedings

  	
  6

  
	
  SECTION 3.10.

  	
  Solvency

  	
  6

  
	
  SECTION 3.11.

  	
  Organizational
  Documents

  	
  7

  
	
  SECTION 3.12.

  	
  Financial
  Statements

  	
  7

  
	
  SECTION 3.13.

  	
  Compliance
  with Applicable Law

  	
  7

  
	
  SECTION 3.14.

  	
  No
  Undisclosed Liabilities

  	
  7

  
	
  SECTION 3.15.

  	
  Reports
  Accurate

  	
  7

  
	
  SECTION 3.16.

  	
  Location of
  Offices

  	
  7

  
	
  SECTION 3.17.

  	
  Lockbox
  Accounts

  	
  7

  
	
  SECTION 3.18.

  	
  Trade Names

  	
  7

  
	
  SECTION 3.19.

  	
  Sale
  Agreement

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE PURCHASER

  	
  8

  
					

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Organization,
  Standing and Power

  	
  8

  
	
  SECTION 4.02.

  	
  Authority;
  Execution and Delivery; Enforceability

  	
  8

  
	
  SECTION 4.03.

  	
  No
  Conflicts; Consents

  	
  8

  
	
  SECTION 4.04.

  	
  Brokers or
  Finders

  	
  9

  
	
  SECTION 4.05.

  	
  Availability
  of Funds

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  COVENANTS

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Covenants
  Relating to Conduct of Business of the Company

  	
  9

  
	
  SECTION 5.02.

  	
  Covenants
  Relating to Conduct of Business of the Purchaser

  	
  10

  
	
  SECTION 5.03.

  	
  Reasonable
  Efforts

  	
  10

  
	
  SECTION 5.04.

  	
  Expenses

  	
  10

  
	
  SECTION 5.05.

  	
  Tax Matters

  	
  10

  
	
  SECTION 5.06.

  	
  Further
  Assurances

  	
  11

  
	
  SECTION 5.07.

  	
  Public
  Announcements

  	
  12

  
	
  SECTION 5.08.

  	
  Existing
  Loan Agreement

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONDITIONS
  PRECEDENT

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Conditions
  to Each Party’s Obligation

  	
  12

  
	
  SECTION 6.02.

  	
  Conditions
  to Obligation of the Purchaser

  	
  12

  
	
  SECTION 6.03.

  	
  Conditions
  to Obligation of the Seller

  	
  13

  
	
  SECTION 6.04.

  	
  Frustration
  of Conditions Precedent

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  TERMINATION,
  AMENDMENT AND WAIVER

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Termination

  	
  14

  
	
  SECTION 7.02.

  	
  Effect of
  Termination

  	
  15

  
	
  SECTION 7.03.

  	
  Amendments
  and Waivers

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  INDEMNIFICATION

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Indemnification
  by the Seller

  	
  15

  
	
  SECTION 8.02.

  	
  Indemnification
  by Purchaser

  	
  15

  
	
  SECTION 8.03.

  	
  Limits on
  Indemnification

  	
  16

  
	
  SECTION 8.04.

  	
  Procedures

  	
  16

  
	
  SECTION 8.05.

  	
  Survival of
  Representations

  	
  17

  
	
  SECTION 8.06.

  	
  No
  Additional Representations

  	
  17

  
	
  SECTION 8.07.

  	
  Indemnification
  If Negligence Of Indemnified Party

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  GENERAL
  PROVISIONS

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Assignment

  	
  18

  
	
  SECTION 9.02.

  	
  No
  Third-Party Beneficiaries

  	
  18

  
	
  SECTION 9.03.

  	
  Notices

  	
  19

  
	
  SECTION 9.04.

  	
  Interpretation;
  Exhibits and Schedules

  	
  19

  
	
  SECTION 9.05.

  	
  Counterparts

  	
  19

  
					

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 9.06.

  	
  Entire
  Agreement

  	
  20

  
	
  SECTION 9.07.

  	
  Severability

  	
  20

  
	
  SECTION 9.08.

  	
  Consent to
  Jurisdiction

  	
  20

  
	
  SECTION 9.09.

  	
  Governing
  Law

  	
  20

  
	
  SECTION 9.10.

  	
  Waiver of
  Jury Trial

  	
  20

  
				

 

iii

 

EXHIBITS

 

	
  Exhibit A — Certain Definitions

  	
   

  
	
   

  	
   

  
	
  Exhibit B — Form of Assignment of
  the FCC Equity Interests

  	
   

  

 

iv

 

PURCHASE AGREEMENT

 

PURCHASE AGREEMENT dated as of November 10, 2008 (this “Agreement”),
between CLST Asset I, LLC, a Delaware limited liability company (the “Purchaser”),
and Drawbridge Special Opportunities Fund LP, a Delaware limited partnership
(the “Seller”).

 

WHEREAS, the Seller owns one hundred percent
(100%) of the equity interests in FCC Investment Trust I, a Delaware statutory
trust (the “Company”), the only assets of which are a portfolio of
receivables (which, for the avoidance of doubt, shall not include certain
charged-off receivables previously identified in writing by the Seller to the
Purchaser and which charged-off receivables have been sold to a third party
prior to the date hereof) (individually, each a “Receivable” and
collectively, the “Receivables”);

 

WHEREAS, the Purchaser desires to purchase
from the Seller, and the Seller desires to sell to the Purchaser, all the
equity interests (and all ancillary rights and benefits in connection
therewith) in the Company (the “FCC Equity Interests”); and

 

WHEREAS, certain capitalized terms used herein
are defined in Exhibit A hereto, which Exhibit is incorporated
into this Agreement and made a part hereof.

 

Accordingly, the parties hereby agree as follows:

 

ARTICLE I

 

Purchase and Sale of the FCC Equity Interests

 

SECTION 1.01.      Purchase and Sale of the FCC Equity
Interests.  At least three (3) Business
Days in advance of the proposed purchase date, the Purchaser shall provide the
Seller a purchase notice specifying (a) the proposed purchase date, (b) the
cut-off date with respect to the Receivables, and (c) the proposed
Purchase Price (the “Purchase Notice”). 
Within one (1) Business Day of receipt of the Purchase Notice, the
Seller shall provide the Purchaser an accurate and complete listing of all
Receivables held by the Company as of the cut-off date specified in the
Purchase Notice (the “Receivables List”).  Upon the terms and subject to the conditions
of this Agreement, the Seller shall sell, transfer and deliver to the
Purchaser, and the Purchaser shall purchase from the Seller, the FCC Equity
Interests for the Purchase Price (as defined below) in cash, on or before the
proposed purchase date.  The date on
which the consummation of the Transactions actually occurs shall be referred to
as the “Purchase Date”.

 

SECTION 1.02.      Transactions To Be Effected on the
Purchase Date.  On the Purchase Date
subject to the terms and conditions of this Agreement:

 

(a)  The
Seller shall deliver to the Purchaser a duly executed instrument of assignment
of the FCC Equity Interests, in substantially the form of Exhibit B
hereto (the “Assignment”);

 

(b)  The
Purchaser shall deliver, or cause to be delivered, to the Seller payment, by
wire transfer to a bank account designated in writing by the Seller (which
designation shall be 

 

 

made at least two (2) Business
Days prior to the Purchase Date) in immediately available funds, an amount
equal to the Purchase Price; and

 

(c)  The
Seller shall deliver to the Purchaser (or its designated custodian) the
Required Receivable File with respect to each Receivable.

 

SECTION 1.03.      Purchase
Price.  With respect to the purchase
of the FCC Equity Interests, the Purchaser shall pay a purchase price on the
Purchase Date equal to the amount determined based on the Eligible Receivables
owned by the Company as of the cut-off date specified in the Purchase Notice
and approved by the Purchaser as of the Purchase Date (the “Purchase Price”).

 

SECTION 1.04.      Certain Payments from Obligors.  If the Seller receives any payment from an
Obligor following the Purchase Date with respect to any Receivable, it shall
hold all such amounts in trust for the Company and shall forward such payment
to the Company within two (2) Business Days after receipt thereof.

 

ARTICLE II

 

Representations and Warranties

Relating to the Seller and the FCC Equity Interests

 

The Seller
hereby represents and warrants to the Purchaser as of the date of this
Agreement and as of the Purchase Date, as follows:

 

SECTION 2.01.      Organization, Standing and Power.  The Seller is a limited partnership duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has full power and authority and possesses all governmental
franchises, licenses, permits, authorizations and approvals necessary to enable
it to own, lease or otherwise hold its properties and assets, including the FCC
Equity Interests, and to conduct its business as currently conducted, other
than such franchises, licenses, permits, authorizations and approvals the lack
of which, individually or in the aggregate, would not reasonably be expected to
have a Seller Material Adverse Effect.

 

SECTION 2.02.      Authority; Execution and Delivery;
Enforceability.  The Seller has full
power and authority to execute, deliver and perform this Agreement and the
other agreements and instruments executed and delivered in connection with this
Agreement (the “Ancillary Agreements”) to which it is a party and to
consummate the Transactions.  The
execution and delivery by the Seller of this Agreement and the Ancillary
Agreements to which it is a party and the consummation by the Seller of the
Transactions have been duly authorized by all necessary limited partnership
action.  The Seller has duly executed and
delivered this Agreement, and prior to the Purchase Date, will have duly executed
and delivered each Ancillary Agreement to which it is a party, and this
Agreement constitutes, and each Ancillary Agreement to which it is a party
will,  on and after the Purchase Date,
constitute, its valid and legally binding obligation, enforceable against it in
accordance with its respective terms, subject to bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, fraudulent transfer and
other similar laws relating to or affecting creditors’ rights generally and to
general equitable 

 

2

 

principles (regardless of
whether considered in a proceeding in equity or at law), including concepts of
commercial reasonableness, good faith and fair dealing and the possible
unavailability of specific performance or injunctive relief.

 

SECTION 2.03.      No Conflicts; Consents.  The execution and delivery by the Seller of
this Agreement do not, the execution and delivery by the Seller of each
Ancillary Agreement to which it is a party do not and will not, and the
consummation of the Transactions and compliance by the Seller with the terms
hereof and thereof do not and will not conflict with, or result in any
violation of or default (with or without notice or lapse of time, or both)
under, or give rise to a right of termination, cancellation or acceleration of
any obligation or to loss of a material benefit under, or result in the
creation of any Lien upon any of the properties or assets of the Seller under,
any provision of (a) the Seller’s organizational documents, (b) any
legally binding contract, lease, license, indenture or agreement, or other
legally binding arrangement, to which the Seller is a party or by which any of
its properties or assets is bound or (c) any stay, judgment, order or
decree or statute, law, ordinance, rule or regulation, domestic or
foreign, applicable to the Seller or its properties or assets, other than, in
the case of clauses (b) and (c) above, any such items that,
individually or in the aggregate, would not reasonably be expected to have a
Seller Material Adverse Effect.  No
consent, approval, waiver, license, permit, order or authorization of, or
registration, declaration, notification or filing with, any Federal, state,
local or foreign government or any court of competent jurisdiction,
administrative agency or commission or other governmental authority or
instrumentality, domestic or foreign is required to be obtained or made by or
with respect to the Seller in connection with the execution, delivery and
performance of this Agreement or any Ancillary Agreement or the consummation of
the Transactions, other than those which if not obtained or made would not
reasonably be expected to have a Seller Material Adverse Effect.

 

SECTION 2.04.      The FCC Equity Interests.  The FCC Equity Interests represent one
hundred percent (100%) of the equity interests in the Company.  Except for the FCC Equity Interests, there
are no equity interests of the Company issued, reserved for issuance or
outstanding.  The Seller has good and
valid title to the FCC Equity Interests, free and clear of all Liens.  Upon completion of the transactions to be
effected on the Purchase Date, good and valid title to the FCC Equity Interests
will pass to the Purchaser, free and clear of any Liens, other than those arising
from acts of the Purchaser or its Affiliates.

 

SECTION 2.05.      Receivables.  (i)  The Receivables List is an accurate
and complete listing of all the Receivables held by the Company on the cut-off
date specified in the Purchase Notice and the information contained therein
with respect to the identity of such Receivables and the amounts owing
thereunder is true, correct and complete as of the Purchase Date, and (ii) all
Receivables held by the Company on the cut-off date specified in the Purchase
Notice constitute Eligible Receivables as of such cut-off date.

 

SECTION 2.06.      Breach of Certain Representations and
Warranties; Purchase.  The parties
hereto hereby agree that if there is a breach of any representation or warranty
made by the Seller in Section 2.05 relating to whether a Receivable
is an Eligible Receivable on the cut-off date, the party discovering such
breach shall promptly notify the other party that such breach has
occurred.  Unless such breach shall have
been remedied within thirty (30) business days of delivery of any such notice,
the Seller hereby agrees to purchase such Receivable no later than 

 

3

 

five (5) Business
Days thereafter, in cash, for a purchase price equal to that portion of the Purchase
Price allocable to such Receivable (less any principal payments received by the
Purchaser thereon since the cut-off date). 
Each of the Seller and the Purchaser agrees to execute and deliver from
time to time such documents and instruments as reasonably requested by the
other party hereto to give effect to the provisions of this Section 2.06.  The exclusive remedy for a breach of any
representation or warranty made by the Seller in Section 2.05 shall
be the remedy provided in this Section 2.06.

 

SECTION 2.07.      Solvency.  The Seller is not subject to any Insolvency
Proceedings or Insolvency Event.  After
giving effect to the Transaction, the Seller is and will be Solvent and able to
pay its debts as they come due, and has and will have adequate capital in light
of its business.

 

SECTION 2.08.      Nature of Purchases.  On the Purchase Date, the Purchaser has given
reasonably equivalent value to the Seller in consideration for the Transaction.

 

SECTION 2.09.      Brokers or Finders.  No agent, broker, investment banker or other
firm or Person is or will be entitled to any broker’s or finder’s fee or any
other commission or similar fee in connection with the Transactions based upon
arrangements made by or on behalf of the Seller.

 

SECTION 2.10.      Proceedings.  There are no actions, suits, arbitrations,
mediations, proceedings, investigations or inquiries, whether civil, criminal
or administrative, pending or, to the knowledge of the Seller, threatened
against the Seller that (i) assert the invalidity of this Agreement or any
Ancillary Agreement to which the Seller is a party or (ii) would prevent
it from performing its duties under this Agreement or any Ancillary Agreement
to which the Seller is a party.  The
Seller is not a party or subject to or in default under any stay, judgment,
order or decree.

 

ARTICLE III

 

Representations and Warranties

Relating to the Company

 

The Seller
hereby represents and warrants to the Purchaser as of the date of this
Agreement and as of the Purchase Date, as follows:

 

SECTION 3.01.      Organization and Standing.  The Company is a Delaware statutory trust
duly organized, validly existing and in good standing under the laws of the
State of Delaware.  The Company has full
power and authority and possesses all governmental franchises, licenses, permits,
authorizations and approvals necessary to enable it to own, lease or otherwise
hold its properties and assets (including the Receivables) and to carry on its
business as currently conducted, other than such franchises, licenses, permits,
authorizations and approvals the lack of which, individually or in the
aggregate, would not reasonably be expected to have a Company Material Adverse
Effect.  The Company is duly qualified
and in good standing to do business as a foreign entity in each jurisdiction in
which the conduct or nature of its business or the ownership, leasing or
holding of its properties makes such qualification 

 

4

 

necessary, except such
jurisdictions where the failure to be so qualified or in good standing,
individually or in the aggregate, would not reasonably be expected to have a
Company Material Adverse Effect.

 

SECTION 3.02.      Equity of the Company.  The FCC Equity Interests owned by the Seller
represent one hundred percent (100%) of the equity interests in the
Company.  Except for the FCC Equity
Interests, there are no equity interests of the Company issued, reserved for
issuance or outstanding.  The FCC Equity
Interests are not subject to or issued in violation of any purchase option, call
option, right of first refusal, preemptive right, subscription right or any
similar right under any provision of agreement to which the Company is a party
or otherwise bound.  As of the date of
this Agreement, there are not any options, warrants, rights, convertible or
exchangeable securities, “phantom” stock rights, stock appreciation rights,
stock-based performance units, commitments, contracts, arrangements or
undertakings of any kind to which the Company is a party or by which it is
bound (a) obligating the Company to issue, deliver or sell, or cause to be
issued, delivered or sold, directly or indirectly, additional equity interests
in, or any security convertible or exercisable for or exchangeable into any
equity interest in, the Company or (b) obligating the Company to issue,
grant, extend or enter into, directly or indirectly, any such option, warrant,
right, unit, commitment, contract, arrangement or undertaking.  As of the date of this Agreement, there are
not any outstanding contractual obligations of the Company to repurchase,
redeem or otherwise acquire any equity interests of the Company.

 

SECTION 3.03.      No Conflicts; Consents.  The consummation of the Transactions do not
and will not conflict with, or result in any violation of or default (with or
without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a
material benefit under, or result in the creation of any Lien upon any of the
properties or assets of the Company under, any provision of (a) the
Certificate of Trust or the Trust Agreement (as defined in the Credit
Agreement) of the Company, (b) any legally binding contract, lease,
license, indenture or agreement, or other legal binding arrangement, to which
the Company is a party or by which any of its properties or assets is bound or (c) any
stay, judgment, order or decree or statute, law, ordinance, rule or
regulation, domestic or foreign, applicable to the Company or its properties or
assets, other than, in the case of clauses (b) and (c) above,
any such items that, individually or in the aggregate, would not reasonably be
expected to have a Company Material Adverse Effect.  No consent, approval, waiver, license,
permit, order or authorization of, or registration, declaration, notification
or filing with, any Federal, state, local or foreign government or any court of
competent jurisdiction, administrative agency or commission or other
governmental authority or instrumentality, domestic or foreign, is required to
be obtained or made by the Company in connection with the consummation of the
Transactions, other than those which if not obtained or made would not
reasonably be expected to have a Company Material Adverse Effect.

 

SECTION 3.04.      [Reserved].

 

SECTION 3.05.      Assets of the Company.  The Company does not hold or own any assets
other than the Receivables and the other Company Assets.  The Company has good and valid title to the
Receivables and all other Company Assets, in each case free and clear of all
mortgages, liens, security interests, charges, easements, leases, subleases,
covenants, rights of

 

5

 

way, options, claims,
restrictions or encumbrances of any kind (collectively, “Liens”).  None of the Mortgage Contracts or
Non-Mortgage Contracts that constitute or evidence the Receivables has any
marks or notations indicating that they have been pledged, assigned or
otherwise conveyed to any Person (other than the Administrative Agent).

 

SECTION 3.06.      Contracts.  As of the date of this Agreement, the Company
is not party to any contract or agreement except that certain Receivables Loan
and Security Agreement, dated as of November 2, 2006, by and among the
Company, Fortress Credit Corp., as a lender and as the agent, and U.S. Bank
National Association, as the custodian and the agent’s bank (the “Existing
Loan Agreement”); it being understood
that such agreement shall be terminated by the proceeds of the Transactions and
any Liens arising thereunder shall be released.

 

SECTION 3.07.      Employees and Benefit Plans.  Since the date of formation of the Company,
and as of the date of this Agreement, the Company has not had and does not have
any employees. The Company has not sponsored, maintained or contributed to any
employee benefit plan within the meaning of Section 3(3) of ERISA or
any employee pension benefit plan within the meaning of Section 3(2) of
ERISA the Company does not have any liability for life, health, medical or
other welfare benefits to present or former employees or beneficiaries or
dependents thereof.

 

SECTION 3.08.      Taxes.

 

(a)  The
Company has not filed any Tax Returns on a separate entity basis.  The Seller has, in respect of the Company,
the FCC Equity Interests and the Receivables, filed all Tax Returns which are
required to be filed and has timely paid all Taxes shown to be due on such Tax
Returns and has paid all other material Taxes for which the Company is liable
on or prior to the date hereof.

 

(b)  No Tax
Return of the Company is under audit or examination by any taxing authority to
the knowledge of the Seller.  No written
notice of an audit or examination has been received by the Company.

 

(c)  The
Company is not party to or bound by any tax sharing agreement, tax indemnity
obligation or similar contract with respect to Taxes (including any advance
pricing agreement, closing agreement or other contract relating to Taxes with
any taxing authority).

 

(d)  The
Company is not and has never been treated as a “corporation” within the meaning
of Treas. Reg. § 301.7701-2(b).

 

SECTION 3.09.      Proceedings.  There are no actions, suits, arbitrations,
mediations, proceedings, investigations or inquiries, whether civil, criminal
or administrative pending or, to the knowledge of the Seller, threatened
against the Seller or the Company.  To
the knowledge of the Seller, neither the Seller nor the Company is a party or subject
to or in default under any stay, judgment, order or decree.

 

SECTION 3.10.      Solvency.  Neither the Company nor the Seller is the
subject of any Insolvency Proceedings or Insolvency Event.  The transactions under this Agreement and any

 

6

 

other Ancillary Document
to which the Seller is a party do not and will not render the Seller not
Solvent.

 

SECTION 3.11.      Organizational Documents.  The Company has delivered full, accurate and
complete copies of its Certificate of Trust, the Trust Agreement and all of its
other organizational documents to the Purchaser.

 

SECTION 3.12.      Financial Statements.  The Company has submitted to the Purchaser
all consolidated unaudited financial statements and any other financial
statements that the Purchaser has requested prior to the Purchase Date (the “Financial
Statements”) and there has been no Company Material Adverse Effect since
the date of the most recent Financial Statements submitted to the Purchaser.

 

SECTION 3.13.      Compliance with Applicable Law.  To the knowledge of the Seller, the Company
is in compliance with all Applicable Laws and has all permits necessary for the
conduct of its business, except for instances of noncompliance that,
individually or in the aggregate, would not reasonably be expected to have a
Company Material Adverse Effect.  The
Company has not received any written notice from any governmental authority
that alleges that the Company is not in compliance in any material respect with
any Applicable Law.

 

SECTION 3.14.      No Undisclosed Liabilities.  To the knowledge of the Seller, other than as
disclosed in the Financial Statements, the Company has no liabilities or
obligations that would be required to be disclosed in the Financial Statements
except liabilities and obligations incurred in the ordinary course of business
since the date of the most recent Financial Statements.

 

SECTION 3.15.      Reports Accurate.  To the knowledge of the Seller, all
information, exhibits, schedules, financial statements, documents, books,
records, contracts or reports furnished by or on behalf of the Seller or the
Company to the Purchaser pursuant to or in connection with this Agreement are
true, correct and complete in all material respects.

 

SECTION 3.16.      Location of Offices.  The Company’s location (within the meaning of
Article 9 of the UCC) is Delaware. 
The complete legal name of the Company is “FCC Investment Trust I” and
the Company has not changed its name (whether by amendment of its certificate
of formation, by reorganization or otherwise) or its jurisdiction of
organization and has not changed its location for purposes of the applicable
UCC within the four (4) months preceding the Purchase Date.

 

SECTION 3.17.      Lockbox Accounts.  The only accounts to which Obligors have been
directed to send collections on the Receivables are the “Lockbox Accounts” (as
defined in the Credit Agreement).

 

SECTION 3.18.      Trade Names.  The Company has no trade names, fictitious
names, assumed names or “doing business as” names or other names under which it
has done or is doing business.

 

SECTION 3.19.      Sale Agreement.  This Agreement is the only agreement or
arrangement pursuant to which the Seller has contracted to sell the FCC Equity
Interests.

 

7

 

ARTICLE IV

 

Representations and Warranties of the Purchaser

 

The Purchaser
hereby represents and warrants to the Seller as of the date of this Agreement
and as of the Purchase Date, as follows:

 

SECTION 4.01.      Organization, Standing and Power.  The Purchaser is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has full power and authority and possesses all
governmental franchises, licenses, permits, authorizations and approvals
necessary to enable it to own, lease or otherwise hold its properties and
assets and to carry on its business as currently conducted, other than such
franchises, licenses, permits, authorizations and approvals the lack of which,
individually or in the aggregate, would not reasonably be expected to have a
Purchaser Material Adverse Effect.

 

SECTION 4.02.      Authority; Execution and Delivery;
Enforceability.  The Purchaser has
full power and authority to execute, deliver and perform this Agreement and the
Ancillary Agreements to which it is a party and to consummate the
Transactions.  The execution and delivery
by the Purchaser of this Agreement and the Ancillary Agreements to which it is
a party and the consummation by the Purchaser of the Transactions have been
duly authorized by all necessary limited liability company action.  The Purchaser has duly executed and delivered
this Agreement and, prior to the Purchase Date, will have duly executed and
delivered each Ancillary Agreement to which it is a party, and this Agreement
constitutes, and each Ancillary Agreement to which it is a party will, on and
after the Purchase Date, constitute, its valid and legally binding obligation,
enforceable against it in accordance with its respective terms, subject to
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance,
fraudulent transfer and other similar laws relating to or affecting creditors’
rights generally and to general equitable principles (regardless of whether
considered in a proceeding in equity or at law), including concepts of commercial
reasonableness, good faith and fair dealing and the possible unavailability of
specific performance or injunctive relief.

 

SECTION 4.03.      No Conflicts; Consents.  The execution and delivery by the Purchaser
of this Agreement do not, the execution and delivery by the Purchaser of each
Ancillary Agreement to which it is a party do not and will not, and the
consummation of the Transactions and compliance by the Purchaser with the terms
hereof and thereof do not and will not conflict with, or result in any
violation of or default (with or without notice or lapse of time, or both)
under, or give rise to a right of termination, cancellation or acceleration of
any obligation or to loss of a material benefit under, or result in the
creation of any Lien upon any of the properties or assets of the Purchaser
under, any provision of (a) the Purchaser’s organizational documents, (b) any
legally binding contract, lease, license, indenture or agreement, or other
legally binding arrangement to which the Purchaser is a party or by which any
of its properties or assets is bound or (c) any stay, judgment, order or
decree or statute, law, ordinance, rule or regulation, domestic or
foreign, applicable to the Purchaser or its properties or assets, other than,
in the case of clauses (b) and (c) above, any such items that,
individually or in the aggregate, would not reasonably be expected to have a
Purchaser Material Adverse Effect.  No
material consent, approval, waiver, license, permit, order or authorization of,
or registration, declaration, notification or filing with, any Federal, state,
local or foreign government or any 

 

8

 

court of competent
jurisdiction, administrative agency or commission or other governmental
authority or instrumentality, domestic or foreign is required to be obtained or
made by the Purchaser in connection with the execution, delivery and
performance of this Agreement or any Ancillary Agreement or the consummation of
the Transactions, other than (i) those that may be required solely by
reason of the Seller’s (as opposed to any other third party’s) participation in
the Transaction or (ii) those which if not obtained or made would not
reasonably be expected to have a Purchaser Material Adverse Effect.

 

SECTION 4.04.      Brokers or Finders.  No agent, broker, investment banker or other
firm or Person is or will be entitled to any broker’s or finder’s fee or any
other commission or similar fee in connection with the Transactions based upon
arrangements made by or on behalf of the Purchaser.

 

SECTION 4.05.      Availability of Funds.  Subject to the execution and delivery of the
Credit Agreement by the parties thereto, on the Purchase Date, the Purchaser
will have cash available or has existing borrowing facilities that together are
sufficient to enable it to consummate the Transactions.

 

ARTICLE V

 

Covenants

 

SECTION 5.01.      Covenants Relating to Conduct of
Business of the Company.  (a) 
In the event the date of this Agreement is not the Purchase Date, then at all
times prior to the Purchase Date the Seller shall cause the business of the
Company to be conducted in the ordinary course in substantially the same manner
as previously conducted.  The Seller
shall not, and shall not permit the Company to, take any action that would
reasonably be expected to result in any of the conditions to the purchase and
sale of the FCC Equity Interests set forth in Article VI not being
satisfied.  In addition, from the date
hereof until the Purchase Date, the Seller shall not permit the Company to do
any of the following without the prior written consent of the Purchaser:

 

(i)            amend the Company’s organizational
documents or governing instruments;

 

(ii)           incur or assume any liabilities,
obligations or indebtedness or guarantee any such liabilities, obligations or
indebtedness, other than in the ordinary course of business and consistent with
past practice;

 

(iii)          waive any claims or rights of material
value;

 

(iv)          acquire by merging or consolidating
with, or by purchasing all or substantially all the assets of, by purchasing a
majority of the voting securities of or a majority equity interest in, or by
any other manner, any business or any other Person;

 

(v)           sell, lease, license or otherwise
dispose of any Receivables or any of its other assets that are material to the
Company or sell, pledge, assign, transfer, grant, create, incur, assume or
suffer to exist any Lien on any Receivables;

 

9

 

(vi)          enter into any lease of real property;
or

 

(vii)         authorize or commit to take the
foregoing actions.

 

(b)  Advise
of Changes.  The Seller shall
promptly (and in any event within two (2) Business Days of discovery)
advise the Purchaser in writing of the occurrence of any matter or event that
after the date of this Agreement would reasonably be expected to result in a
Company Material Adverse Effect or a Seller Material Adverse Effect.

 

SECTION 5.02.      Covenants Relating to Conduct of
Business of the Purchaser.

 

(a)  The
Purchaser shall not take any action that would reasonably be expected to result
in any of the conditions to the purchase and sale of the FCC Equity Interests
set forth in Article VI not being satisfied.

 

(b)  Advise
of Changes.  The Purchaser shall
promptly advise the Seller in writing of the occurrence of any matter or event
after the date of this Agreement that would reasonably be expected to result in
a Purchaser Material Adverse Effect.

 

SECTION 5.03.      Reasonable Efforts.  On the terms and subject to the conditions of
this Agreement, each party shall cooperate with the other party, and use all
reasonable efforts (except where a different standard is otherwise
established), to cause the Transactions to occur, including taking all
reasonable actions necessary to comply promptly with all legal requirements.

 

SECTION 5.04.      Expenses.  Whether or not the Transaction is consummated
and except as set forth in Article VIII, all costs and expenses
incurred in connection with this Agreement, the Ancillary Agreements and the
Transaction shall be paid by the party incurring such expense.

 

SECTION 5.05.      Tax Matters.

 

(a)  Tax
Indemnification.  The Seller shall be
liable for and pay (and shall indemnify Purchaser and the Company against) all
Taxes applicable to the Company, the FCC Equity Interests and the Receivables,
in each case attributable to taxable years or periods ending on or prior to the
close of business on the Purchase Date and, with respect to any taxable year or
period beginning before and ending after the Purchase Date, (any such period, a
“Straddle Period”), the portion of such Straddle Period ending on the
close of business on the Purchase Date. 
The Purchaser shall be liable for and pay (and shall indemnify the
Seller against) all Taxes applicable to the Company, the FCC Equity Interests
and the Receivables, in each case attributable to taxable years or periods
beginning after the close of business on the Purchase Date and, with respect to
any Straddle Period, the portion of such Straddle Period beginning after the
close of business on the Purchase Date. 
For purposes of this Section 5.05(a), any Straddle Period
shall be treated on a “closing of the books” basis as two partial periods, one
ending at the close of business on the Purchase Date, and the other beginning
immediately thereafter, provided that
property Taxes and similar ad valorem Taxes shall be allocated on a daily
basis.

 

(b)  Tax
Returns.  The Seller will, and shall
cause its affiliates to, report all U.S. federal and applicable state and local
income and franchise Tax items (“Income Tax Items”) 

 

10

 

attributable to its
ownership of the FCC Equity Interests and related Receivables up to and
including the Purchase Date on its timely filed (after taking into account any
extensions) U.S. federal and applicable state and local income and franchise
Tax returns.  The Purchaser or the
Company, as the case may be, will, and shall cause its controlled affiliates
to, report all Income Tax Items attributable to its ownership of the FCC Equity
Interests and related Receivables, as the case may be, after the Purchase Date
on its timely filed (after taking into account any extensions) U.S. federal and
applicable state and local income and franchise Tax returns.

 

(c)  Transfer
Taxes.  Notwithstanding Section 5.05(a) or
(b), any sales Tax, use Tax, real property transfer or gains Tax, asset
transfer Tax, documentary stamp Tax or similar Tax attributable to the sale or
transfer of the Company or the FCC Equity Interests shall be borne equally by
the Purchaser and the Seller.  The
Purchaser, on the one hand, and the Seller, on the other hand, agree to timely
sign and deliver such certificates or forms as may be necessary or appropriate
to establish an exemption from (or otherwise reduce), or file Tax Returns with
respect to, such Taxes.

 

(d)  Tax
Contest.  The Purchaser shall
promptly notify the Seller in writing upon receipt by the Purchaser or any of
its affiliates of notice of any pending or threatened U.S. federal, state,
local or foreign Tax audits, examinations or assessments which may materially
affect the Tax liabilities for which the Seller would be required to indemnify
any Purchaser Indemnitee pursuant to this Section 5.05.  The Seller shall have the sole right to
control any such Tax audit or administrative or court proceeding with respect
to Tax liabilities for which it would be required to indemnify the
Purchaser.  Neither the Purchaser nor any
of its affiliates may settle any Tax claim which may be the subject of indemnification
by the Seller under this Section 5.05 without the prior written
consent of the Seller, which consent may be withheld in the sole discretion of
the Seller.  If there shall be any
conflicts between the provisions of this Section 5.05(d) and
any other provision of this Agreement, the provisions of this Section 5.05(d) shall
control with respect to Tax contests.

 

(e)  Cooperation.  Each of the Seller and the Purchaser shall
(and shall cause their respective controlled affiliates to):  (i) provide reasonable assistance to the
other party in preparing any Tax Returns which such other party is responsible
for preparing and filing; (ii) reasonably cooperate in preparing for any
audits of, or disputes with taxing authorities regarding, any Tax Returns
relating to the Company, the FCC Equity Interests or the Receivables; (iii) make
available to the other party and to any taxing authority, as reasonably
requested, all information, records, and documents relating to Taxes (or copies
of the relevant portions thereof) relating to the Company, the FCC Equity
Interests or the Receivables; (iv) provide timely notice to the other
party in writing of any pending or threatened Tax audits, examinations or
assessments relating to the Company, the FCC Equity Interests or the
Receivables for taxable periods for which the other party may have a liability
under this Section 5.05; and (v) furnish the other party with
copies of all correspondence (or relevant portions thereof) received from any
taxing authority in connection with any Tax audit or information request with
respect to any taxable period for which the other party may have a liability
under this Section 5.05.

 

SECTION 5.06.      Further Assurances.  During the one-year period immediately
following the Purchase Date, as and when requested by any party, each party
shall execute and 

 

11

 

deliver, or cause to be
executed and delivered, all such documents and instruments and shall take, or
cause to be taken, all such further or other actions, as such other party may
reasonably request to consummate the Transactions, including, in the case of
the Seller, executing and delivering to the Purchaser such assignments, deeds,
bills of sale, consents and other instruments as the Purchaser may reasonably
request to effect the Transactions, the filing of all financing statements (or
amendments thereto) or other similar instruments or documents necessary under
the Uniform Commercial Code or any comparable law of all appropriate
jurisdictions, to perfect the Purchaser’s ownership interest in the FCC Equity
Interests and the Company’s ownership interest in the Receivables and such
other action to perfect, protect or more fully evidence the interest of the
Purchaser or the Company therein.  Upon
discovery by a party to this Agreement of an inaccuracy in any of its
representations and warranties, such party shall give the other party prompt
written notice thereof.

 

SECTION 5.07.      Public Announcements.  The parties hereto each agree to (a) consult
with each other before issuing any press release or otherwise making any public
statement with respect to the Transactions, (b) provide to each other
party for review a copy of any such press release or public statement and (c) not
issue any such press release or make any such public statement prior to such
consultation and review and, unless such issuance is required by law, the
receipt of the prior consent of the other parties to this Agreement.

 

SECTION 5.08.      Existing Loan Agreement.  The Seller will use the proceeds of the
Transactions to pay off in full any indebtedness under the Existing Loan
Agreement and will secure the complete and unconditional release by the lender(s) thereunder
of all Liens thereunder.

 

ARTICLE VI

 

Conditions Precedent

 

SECTION 6.01.      Conditions to Each Party’s Obligation.  The obligation of the Purchaser and the
Seller to complete the Transactions is subject to the satisfaction or waiver by
both the Purchaser and the Seller on or prior to the Purchase Date, of each of
the following conditions:

 

(a)  Governmental
Approvals.  All material consents of,
or filings with, any governmental authority necessary for the consummation of
the Transactions shall have been obtained or made.

 

(b)  No
Injunctions or Restraints.  No
Applicable Law or injunction enacted, entered, promulgated, enforced or issued
by any governmental authority or other legal restraint or prohibition
preventing the consummation of the Transactions shall be in effect.

 

SECTION 6.02.      Conditions to Obligation of the
Purchaser.  The obligation of the
Purchaser to complete the Transactions is subject to the satisfaction (or
waiver by the Purchaser) on or prior to the Purchase Date, of each of the
following conditions:

 

(a)  Representations
and Warranties.  The representations
and warranties of the Seller made in this Agreement and the Ancillary
Agreements shall be true and correct in all 

 

12

 

material respects as of
the date of this Agreement and as of the Purchase Date, except to the extent
such representations and warranties expressly relate to another date (in which
case such representations and warranties shall be true and correct as of such
other date), and except to the extent that such representations and warranties
are qualified by materiality or by reference to a “Material Adverse Effect”
(in which case such representations and warranties shall be true and correct in
all respects).

 

(b)  Performance
of Obligations of the Seller and the Company.  The Seller shall have performed or complied
in all material respects with all obligations and covenants required by this
Agreement to be performed or complied with by the Seller.

 

(c)  Material
Adverse Effect.  Since the date of
this Agreement, there shall not have occurred a Company Material Adverse Effect
or a Seller Material Adverse Effect.

 

(d)  The
Seller (i) shall have duly executed and delivered to the Purchaser the
Assignment and any certificates representing all of the FCC Equity Interests
with duly executed powers attached in proper form for transfer to the Purchaser
and (ii) shall have duly executed and delivered any other documents that
are necessary to transfer record title to the FCC Equity Interests to the
Purchaser pursuant to Section 3.2 of the Trust Agreement or otherwise.

 

(e)  U.S.
Bank Trust National Association, as Owner Trustee, the Seller and the Purchaser
shall have executed and delivered the Amended and Restated Trust Agreement of
the Company, whereby the Purchaser is named as substitute owner participant.

 

(f)   The Credit Agreement shall have been duly executed and
delivered by the parties thereto and the conditions precedent to the closing
thereof shall have been fulfilled.

 

(g)  The
Seller shall have delivered to the purchaser an officer’s certificate executed
by an authorized representative of the Seller, to which is attached the
formation and governing documents of the Seller, certified as to their
completeness and correctness by the signing officer.

 

SECTION 6.03.      Conditions to Obligation of the Seller.  The obligation of the Seller to complete the
Transactions is subject to the satisfaction (or written waiver by the Seller)
on or prior to the Purchase Date, of each of the following conditions:

 

(a)  Representations
and Warranties.  The representations
and warranties of the Purchaser made in this Agreement and the Ancillary
Agreements shall be true and correct in all material respects as of the date of
this Agreement and as of the Purchase Date, except to the extent such
representations and warranties expressly relate to another date (in which case
such representations and warranties shall be true and correct as of such other
date) and except to the extent that such representations and warranties are
qualified by materiality or by reference to a “Material Adverse Effect”
(in which case such representations and warranties shall be true and correct in
all respects).

 

(b)  Performance
of Obligations of the Purchaser.  The
Purchaser shall have performed or complied in all material respects with all
obligations and covenants required by this Agreement to be performed or
complied with by the Purchaser.

 

13

 

(c)  Purchaser
Material Adverse Effect.  Since the
date of this Agreement, there shall not have occurred a Purchaser Material
Adverse Effect.

 

SECTION 6.04.      Frustration of Conditions Precedent.  Neither the Purchaser nor the Seller may rely
on the failure of any condition set forth in this Article VI to be
satisfied if such failure was caused by such party’s failure to act in good
faith.

 

ARTICLE VII

 

Termination, Amendment and Waiver

 

SECTION 7.01.      Termination.

 

(a) 
Notwithstanding anything to the contrary in this Agreement, this Agreement may
be terminated and the unconsummated Transactions abandoned on any date (the “Termination
Date”) upon or after which any of the following shall have occurred:

 

(i)            by mutual written consent of the
Seller and the Purchaser;

 

(ii)           by the Seller if (A) any of the
conditions set forth in Sections 6.01 or 6.03 shall have
become incapable of fulfillment and shall not have been waived by the Seller or
(B) if the Purchaser breaches or fails to perform in any material respect
its agreements or covenants contained in this Agreement or any Ancillary
Agreement, which breach or failure to perform (x) would give rise to the
failure of a condition set forth in Section 6.01 or 6.03 and
(y) cannot be or has not been cured within thirty (30) days after the
giving of written notice to the Purchaser of such breach; or

 

(iii)          by the Purchaser if (A) any of
the conditions set forth in Sections 6.01 or 6.02 shall have
become incapable of fulfillment and shall not have been waived by the Purchaser
or (B) if the Seller breaches or fails to perform in any material respect
its agreements or covenants contained in this Agreement or any Ancillary Agreement,
which breach or failure to perform (x) would give rise to the failure of a
condition set forth in Section 6.01 or 6.02 and (y) cannot
be or has not been cured within thirty (30) days after the giving of written
notice to the Seller of such breach;

 

provided that (x) the
party seeking termination pursuant to clause (ii) or (iii) is
not then in material breach of any of its representations, warranties,
covenants or agreements contained in this Agreement.

 

(b)  In the
event of termination by the Seller or the Purchaser pursuant to this Section 7.01,
written notice thereof shall forthwith be given to the other and, to the extent
they have not been previously consummated, the Transactions shall be
terminated, without further action by any party.  If the Transactions are terminated as
provided herein prior to consummation, each party shall return all documents
and other material received from or on behalf of the other party relating to
the Transactions, whether so obtained before or after the execution hereof, to
such other party.

 

14

 

SECTION 7.02.      Effect of Termination.  If this Agreement is terminated and the
Transactions are abandoned as described in Section 7.01, this
Agreement shall become null and void and of no further force and effect, except
for the provisions of Article VIII and this Section 7.02.  Nothing in this Section 7.02
shall be deemed to release any party from any liability for any breach by such
party of the terms and provisions of this Agreement or to impair the right of
any party to compel specific performance by any other party of its obligations
under this Agreement.

 

SECTION 7.03.      Amendments and Waivers.  This Agreement may not be amended except by
an instrument in writing signed on behalf of each of the parties hereto.  By an instrument in writing, the Purchaser,
on the one hand, or the Seller, on the other hand, may waive compliance by the
other with any term or provision of this Agreement that such other party (or
any of its subsidiaries) was or is obligated to comply with or perform.

 

ARTICLE VIII

 

Indemnification

 

SECTION 8.01.      Indemnification by the Seller.

 

(a)  From and
after the date of this Agreement, the Seller shall be liable for, and shall
indemnify each of the Purchaser and its Affiliates, and their respective
officers, directors, managers, employees, agents and representatives including,
after the Purchase Date, the Company (each, a “Purchaser Indemnitee”),
against and hold it harmless from, any loss, liability, claim, damage or
expense including reasonable legal fees and expenses (collectively, “Losses”),
suffered or incurred by such Purchaser Indemnitee to the extent arising from:

 

(i)            any breach of any representation or
warranty of the Seller contained in this Agreement; and

 

(ii)           any breach of any agreement or
covenant of the Seller contained in this Agreement.

 

(b)  Except
as otherwise specifically provided in this Agreement, including, without
limitation, Section 2.06, or in any Ancillary Agreement, the
Purchaser acknowledges that its sole and exclusive remedy with respect to any
and all claims relating to this Agreement, the Ancillary Agreements and the
Transactions, the Company and its assets and liabilities (other than claims of,
or causes of action arising from, fraud or criminal activity) shall be pursuant
to the indemnification provisions set forth in this Article VIII.

 

SECTION 8.02.      Indemnification
by Purchaser.

 

(a)  From and
after the date of this Agreement, the Purchaser shall indemnify each of the
Seller and its Affiliates and their respective officers, directors, managers,
employees, agents and representatives (each, a “Seller Indemnitee”),
against and hold it harmless from any Loss suffered or incurred by such Seller
Indemnitee to the extent arising from:

 

15

 

(i)            any breach of any representation or
warranty of the Purchaser contained in this Agreement; and

 

(ii)           any breach of any agreement or
covenant of the Purchaser contained in this Agreement.

 

SECTION 8.03.      Limits on Indemnification.  In no event shall any indemnifying party have
liability for any consequential, incidental, indirect, punitive, special or
exemplary damages, lost profits, diminution in value or similar items, or any
other damages that are not a reasonably foreseeable consequence of the breach
giving rise to the claim for indemnification. 
A party shall not be required to indemnify, and shall not have any
liability, under this Article VIII, to the extent the liability or
obligation arises as a result of the gross negligence or willful misconduct of
the other party or any of the other party’s Affiliates.

 

SECTION 8.04.      Procedures.

 

(a)  Third
Party Claims.  In order for a Person
(the “indemnified party”) to be entitled to any indemnification provided
under Sections 8.01 or 8.02 in respect of, arising out of or
involving a claim made by any Person against the indemnified party (a “Third
Party Claim”), such indemnified party must notify the indemnifying party in
writing (and in reasonable detail) of the Third Party Claim within ten (10) Business
Days after receipt by such indemnified party of notice of the Third Party
Claim; provided that failure to give such
notification shall not affect the indemnification provided hereunder except to
the extent the indemnifying party shall have been actually prejudiced as a
result of such failure.  Thereafter, the
indemnified party shall deliver to the indemnifying party, as promptly as
practicable and in any event within five (5) Business Days’ time after the
indemnified party’s receipt thereof, copies of all notices and material
documents (including court papers) received by the indemnified party relating
to the Third Party Claim.

 

(b)  Assumption.  If a Third Party Claim is made against an
indemnified party, the indemnifying party shall be entitled to participate in
the defense thereof and, if it so chooses, to assume the defense thereof with
counsel selected by the indemnifying party; provided that
such counsel is not reasonably objected to by the indemnified party.  Should the indemnifying party so elect to
assume the defense of a Third Party Claim, the indemnifying party shall not be
liable to the indemnified party for any legal expenses subsequently incurred by
the indemnified party in connection with the defense thereof provided that if (i) the indemnifying party fails to
take reasonable steps necessary to defend diligently such matter or (ii) a
reasonable likelihood exists of a conflict of interest between the indemnifying
party and the indemnified party, the indemnified party may assume its own
defense, and the indemnifying party shall be liable for all reasonable costs or
expenses paid or incurred by the indemnified party in connection
therewith.  If the indemnifying party
assumes such defense, the indemnified party shall have the right to participate
in the defense thereof and to employ counsel, at its own expense, separate from
the counsel employed by the indemnifying party, it being understood that the
indemnifying party shall control such defense. 
The indemnifying party shall be liable for the fees and expenses of
counsel employed by the indemnified party for any period during which the
indemnifying party has not assumed the defense thereof.  If the indemnifying party elects to assume
the defense of a Third Party Claim, all the indemnified parties shall cooperate
(at the indemnifying party’s 

 

16

 

request) in the defense
thereof.  Such cooperation shall include
the retention and (upon the indemnifying party’s request) the provision to the
indemnifying party of records and information that are reasonably relevant to
such Third Party Claim, and making employees available on a mutually convenient
basis to provide additional information and explanation of any material
provided hereunder.  Whether or not the
indemnifying party assumes the defense of a Third Party Claim, the indemnified
party shall not admit any liability with respect to, or settle, compromise or
discharge, such Third Party Claim without the indemnifying party’s prior
written consent (such consent not to be unreasonably withheld).  If the indemnifying party assumes the defense
of a Third Party Claim, the indemnifying party shall be authorized to consent
to any settlement, judgment, compromise or discharge of such Third Party Claim,
without the consent of any indemnified party, provided
that such settlement, judgment, compromise or discharge involves solely the
payment of money and obligates the indemnifying party to pay the full amount of
any damages in connection therewith.

 

(c)  Other
Claims.  In the event any indemnified
party should have a claim against any indemnifying party under Sections 8.01
or 8.02  that does not involve a
Third Party Claim being asserted against or sought to be collected from such
indemnified party, the indemnified party shall deliver written notice of such
claim with reasonable promptness to the indemnifying party.  The failure by any indemnified party so to
notify the indemnifying party shall not relieve the indemnifying party from any
liability that it may have to such indemnified party under Section 8.01
or 8.02, except to the extent that the indemnifying party has been
prejudiced by such failure.  All the
indemnified parties shall cooperate in the investigation by the indemnifying
party of any such claim.  Such cooperation
shall include the retention and (upon the indemnifying party’s request) the
provision to the indemnifying party of records and information that are
reasonably relevant to such claim, and making employees available on a mutually
convenient basis to provide additional information and explanation of any
material provided hereunder.

 

(d)  Mitigation.  The Purchaser and the Seller shall cooperate
with each other with respect to resolving any claim or liability with respect
to which one party is obligated to indemnify the other party hereunder,
including by using all reasonable efforts to mitigate or resolve any such claim
or liability.

 

SECTION 8.05.      Survival of Representations.  The representations and warranties, covenants
and agreements contained in this Agreement and in any document delivered in
connection herewith shall survive indefinitely solely for purposes of this Article VIII
and Section 2.06.

 

SECTION 8.06.      No Additional Representations.  The Purchaser acknowledges that it and its
representatives have been permitted full and complete access to the books and
records, facilities, tax returns, contracts and other properties and assets of
the Company that it and its representatives have desired or requested to see or
review, and that it and its representatives have had a full opportunity to meet
with the officers and employees of the Seller to discuss the business of the
Company.  The Purchaser acknowledges and
agrees that (a) it has made its own inquiry and investigation into, and,
based thereon, has formed an independent judgment concerning, the Company and
its business, (b) none of the Seller, the Company, their representatives
or any other Person has made any representation or warranty, expressed or 

 

17

 

implied, as to the
Company or its business or the accuracy or completeness of any information
regarding the Company or its business furnished or made available to Purchaser
and its representatives, except as expressly set forth in this Agreement or the
Ancillary Agreements, (c) the Purchaser has not relied on any
representation or warranty from the Seller, the Company, their representatives
or any other Person in determining to enter into this Agreement, except as
expressly set forth in this Agreement or the Ancillary Agreements, and (d) none
of the Seller or any other Person shall have or be subject to any liability to
the Purchaser or any other Person resulting from the distribution to the
Purchaser, or the Purchaser’s use of, any such information, including any
information, documents or material made available to the Purchaser in any
physical or electronic “data rooms”, management presentations or in any other
form in expectation of the Transactions. 
The Purchaser acknowledges that, should the Purchase Date occur, the
Purchaser shall acquire the assets of the Company without any representation or
warranty as to merchantability or fitness for any particular purpose, in an “as
is” condition and on a “where is” basis, except as otherwise expressly set
forth in this Agreement and the Ancillary Agreements.

 

SECTION 8.07.      Indemnification If Negligence Of
Indemnified Party.  THE
INDEMNIFICATION PROVISIONS IN THIS ARTICLE VIII SHALL BE ENFORCEABLE REGARDLESS
OF WHETHER THE LIABILITY IS BASED ON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR
LEGAL REQUIREMENTS AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON
FROM WHOM  INDEMNIFICATION IS SOUGHT)
ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE
OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT
LIABILITY IMPOSED ON THE PERSON SEEKING INDEMNIFICATION.  THE PARTIES AGREE THE PRECEDING SENTENCE IS
COMMERCIALLY CONSPICUOUS.  Each
Indemnified Party’s rights and remedies set forth in this Agreement will not be
deemed waived by such Indemnified Party’s consummation of the Transactions and
will be effective regardless of any inspection or investigation conducted, or
the awareness of any matters acquired (or capable or reasonably capable of
being acquired), by or on behalf of such indemnified party or by its directors,
officers, employees or representatives or at any time (regardless of whether
notice of such knowledge has been given to indemnifying party), whether before
or after the date of this Agreement or the Purchase Date with respect to any
circumstances constituting a condition under this Agreement, unless any waiver
specifically so states.

 

ARTICLE IX

 

General Provisions

 

SECTION 9.01.      Assignment.  This Agreement and the rights and obligations
hereunder shall not be assignable or transferable by the Seller or the
Purchaser without the prior written consent of the other party.  Any attempted assignment in violation of this
Section 9.01 shall be void.

 

SECTION 9.02.      No Third-Party Beneficiaries.  Except as provided in Section 5.05
and Article VIII, this Agreement is for the sole benefit of the
parties hereto and their permitted 

 

18

 

assigns and nothing
herein expressed or implied shall give or be construed to give to any Person,
other than the parties hereto and such assigns, any legal or equitable rights
hereunder.

 

SECTION 9.03.      Notices.  All notices and other communications required
and permitted to be given hereunder shall be in writing and shall be delivered
by hand, sent by facsimile, electronic mail or sent, postage prepaid, by
registered, certified or express mail or overnight courier service and shall be
deemed given when received, as follows:

 

(a)  if to
the Purchaser,

 

815 East Market Street

Akron, Ohio 44305

Fax No.: (330) 376-2527

Attention: John Head

Email: johnh@fairfinance.com

 

with a mandatory copy to:

 

Jackson Walker L.L.P.

901 Main Street, Suite 6000

Dallas, Texas 75202

Fax No.: (214) 661-6697

Attention: Jeffrey M. Sone

Email: jsone@jw.com

 

(b)  if to
the Seller,

 

1345 Avenue of the Americas,
46th Floor

New York, NY 10105

Attention:  Lance Sherer

 

SECTION 9.04.      Interpretation; Exhibits and Schedules.  The headings contained in this Agreement, in
any Exhibit or Schedule hereto and in the table of contents to this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. 
All Exhibits and Schedules annexed hereto or referred to herein are
hereby incorporated in and made a part of this Agreement as if set forth in
full herein.  Any capitalized terms used
in any Schedule or Exhibit, but not otherwise defined therein, shall have the
meaning as defined in this Agreement. 
When a reference is made in this Agreement to an Article, Section, Exhibit or
Schedule, such reference shall be to an Article or Section of, or an Exhibit or
Schedule to, this Agreement unless otherwise indicated.  Each party hereto has participated in the
drafting of this Agreement, which each party acknowledges and agrees is the
result of extensive negotiations between the parties hereto, and no party shall
be construed as having drafted this Agreement.

 

SECTION 9.05.      Counterparts.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when each of the parties has signed and delivered to the
other parties one or more such 

 

19

 

counterparts.  Delivery of a copy of this Agreement bearing
an original signature by facsimile transmission or by electronic mail in “portable
document format” form shall have the same effect as physical delivery of the
paper document bearing the original signature.

 

SECTION 9.06.      Entire Agreement.  This Agreement and the Ancillary Agreements,
along with the Schedules and Exhibits hereto and thereto, contain the entire
agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersede all prior agreements and understandings
relating to such subject matter.

 

SECTION 9.07.      Severability.  If any provision of this Agreement (or any
portion thereof) or the application of any such provision (or any portion
thereof) to any Person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or 
unenforceability shall not affect any other provision hereof (or the
remaining portion thereof) or the application of such provision to any other
Persons or circumstances.

 

SECTION 9.08.      Consent to Jurisdiction.  Each party irrevocably submits to the
non-exclusive jurisdiction of (a) the Supreme Court of the State of New
York, New York County, and (b) the United States District Court for the
Southern District of New York, for the purposes of any proceeding arising out
of this Agreement, any Ancillary Agreement or any transaction contemplated
hereby or thereby.  Each party agrees to
commence any such proceeding either in the United States District Court for the
Southern District of New York or if such proceeding may not be brought in such
court for jurisdictional reasons, in the Supreme Court of the State of New
York, New York County.  Each party
further agrees that service of any process, summons, notice or document by
registered mail to such party’s respective address set forth above shall be
effective service of process for any proceeding in New York with respect to any
matters to which it has submitted to jurisdiction in this Section 9.08.  Each party irrevocably and unconditionally
waives any objection to the laying of venue of any proceeding arising out of
this Agreement, any Ancillary Agreement or the Transactions in (i) the
Supreme Court of the State of New York, New York County, or (ii) the
United States District Court for the Southern District of New York, and hereby
and thereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such proceeding brought in any such
court has been brought in an inconvenient forum.

 

SECTION 9.09.      Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

 

SECTION 9.10.      Waiver of Jury Trial.  EACH PARTY HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 
EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD 

 

20

 

NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE ANCILLARY AGREEMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.10.

 

[SIGNATURE PAGES FOLLOW]

 

21

 

IN WITNESS
WHEREOF, the Seller, and the Purchaser have duly executed this Agreement as of
the date first written above.

 

	
   

  	
  DRAWBRIDGE SPECIAL

  
	
   

  	
  OPPORTUNITIES FUND LP

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  DRAWBRIDGE SPECIAL

  OPPORTUNITIES GP LLC, General

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Constantine M. Dakoljas

  
	
   

  	
  Name:

  	
  Constantine M. Dakoljas

  
	
   

  	
  Title:

  	
  President

  

 

Trust Purchase Agreement

 

 

IN WITNESS
WHEREOF, the Seller, and the Purchaser have duly executed this Agreement as of
the date first written above.

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  CLST ASSET I, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert Kaiser

  
	
   

  	
  Name:

  	
  Robert Kaiser

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

Trust Purchase Agreement

 

 

Exhibit A

 

Certain Definitions

 

“Administrative
Agent” has the meaning set forth in the Credit Agreement.

 

“Affiliate”
of any Person means any other Person that, directly or indirectly, through one
or more intermediaries, controls, or is controlled by, or is under common
control with, the first Person.  The
terms “control” or “controlled”, as used in the immediately preceding sentence,
mean the possession, directly or indirectly, of the power, directly or
indirectly, to direct or cause the direction of the management or policies of
the controlled Person through the ownership of fifty percent (50%) or more of
the voting rights attributable to the equity interests in such Person, by
contract, by the general partner of a Person that is a partnership, or
otherwise.

 

“Agreement”
has the meaning provided in the introductory paragraph hereof.

 

“Ancillary
Agreements” shall have the meaning set forth in Section 2.02.

 

“Applicable
Law” is defined in the Credit Agreement.

 

“Assignment”
shall have the meaning set forth in Section 1.02(a).

 

“Bankruptcy
Code” means the United States bankruptcy code, as set forth in Title 11 of
the United States Code, as amended from time to time.

 

“Benefit
Plan” means any “employee benefit plan” as defined in Title IV of ERISA in
respect of which the Seller or the Company or any ERISA Affiliate of the Seller
or the Company is, or at any time during the preceding six years was, and “employer”
as defined in Title IV of ERISA.

 

“Business Day” means any day (other
than a Saturday or Sunday) on which banking institutions in New York, New York
are not authorized or required to be closed.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Company”
shall have the meaning set forth in the second paragraph of this Agreement.

 

“Company Assets” means all right,
title, and interest (whether now owned or hereafter acquired or arising, and
wherever located) of the Company in the property identified in clauses (a) through
(c) below and all accounts, cash and currency, chattel paper,
tangible chattel paper, electronic chattel paper, copyrights, copyright
licenses,  equipment, fixtures, contract
rights, general intangibles, instruments, certificates of deposit, certificated
securities, uncertificated securities, financial assets, securities
entitlements, commercial tort claims, deposit accounts, inventory, investment
property, letter of credit rights, software, supporting obligations,
accessions, and other property of the Company consisting of, arising out of, or
related to any of the following:

 

 

(a)           the
Receivables and all monies due or to become due tin payment under such
Receivables, including, but not limited to, all Collections (as such term is
defined in the Credit Agreement);

 

(b)           all
Related Security with respect to the Receivables referred to in clause (a) above;
and

 

(c)           all
income and Proceeds of the foregoing.

 

“Company Material Adverse Effect”
means any circumstance, event, occurrence, change or effect that, individually
or in the aggregate, is materially adverse to the business, assets, financial
condition or results of operations of the Company.

 

“Contract” means a
Mortgage Contract, a Non-Mortgage Contract or any other form of retail
installment contract.

 

“Contractor” means the
Person that enters into a Contract with an Obligor to provide the home
improvement services specified therein.

 

“Contractor Sale Agreement”
means a “Continuous Buy-Sell Agreement”, entered into by First Consumer
Credit, Inc. (or FCC Finance, LLC as successor thereto) with a Contractor,
whereby First Consumer Credit, Inc. (or FCC Finance, LLC as successor
thereto) agreed to advance the purchase price of a Contract to such Contractor,
for the benefit of the original lender thereunder, together with all schedules,
supplements and amendments thereto and each other document and instrument
related thereto.

 

“Credit Agreement” means
that certain credit agreement, dated as of November 6, 2008, by and among
FCC Finance, LLC, as the servicer, the Company, as the borrower, Fortress
Credit Co LLC, as a lender and as the administrative agent, U.S. Bank National
Association, as the collateral custodian, and Lyon Financial Services, Inc.
(d/b/a U.S. Bank Portfolio Services), as the backup servicer (as such agreement
may be amended, modified, waived, supplemented, restated or replaced from time
to time).

 

“Credit and Collections
Policy” is defined in the Credit Agreement.

 

“Defaulted Receivable”
means a Receivable as to which any of the following has occurred:  (a) all or any portion of a contractual
payment due under such Receivable is 121 or more days past due, (b) the
payment terms related to such Receivable have been restructured or modified in
any way due to credit reasons or for the purpose of preventing such Receivable
from becoming a Defaulted Receivable prior to the Purchase Date, (c) a
charge-off has been taken with respect to such Receivable as a result of a
bankruptcy proceeding or otherwise or (d) the servicer of the Receivable
has determined (or should have determined) in accordance with the its credit
and collection policy, servicing standard or otherwise that such Receivable is
not collectible.

 

“Dollar”, “Dollars”, “U.S.
Dollars” and the symbol “$” means the lawful currency of the United
States of America.

 

 

“Eligible Obligor” means any Obligor
that:

 

(i)            is a natural person;

 

(ii)           is not an employee, principal,
director or equity holder of the Seller or the Company; and

 

(iii)          is not a government authority.

 

“Eligible
Receivable” means each Receivable that satisfies each of the following
eligibility requirements:

 

(a)  such
Receivable, together with the Underlying Instruments related thereto, (i) is
in full force and effect and constitutes the legal, valid and binding
obligation of the related Obligor enforceable against such Obligor in
accordance with its terms, except as such enforceability may be limited by
Insolvency Laws and by principles of equity (whether considered in a suit at
law or in equity), (ii) is not subject to any litigation, material dispute
or offset and (iii) contains provisions substantially to the effect that
the Obligor’s payment obligations thereunder are absolute and unconditional
without any right of rescission, setoff, counterclaim or defense for any reason
(except as required by Applicable Law) against the applicable Contractor (if
applicable), originator or any assignee thereof;

 

(b)  such
Receivable is denominated and payable only in Dollars (and not in another
currency or in kind) in the United States and does not permit the currency or
country in which such Receivable is payable to be changed;

 

(c)  such
Receivable is not a Defaulted Receivable;

 

(d)  such
Receivable has an original term to maturity that does not exceed two hundred
and forty (240) months;

 

(e)  no
participation interests have been granted to any Person with respect to such
Receivable;

 

(f)  such
Receivable was originated in compliance with all Applicable Laws and the
related Underlying Instruments comply in all material respects with all
Applicable Laws;

 

(g)  such Receivable
is eligible (giving effect to the provisions of Sections 9-406 and 9-408 of the
UCC) to have a security interest therein granted to the Purchaser, and such
Receivable does not contain any restrictions that would prohibit the assignment
or transfer of such Receivable;

 

(h)  such
Receivable does not contain a confidentiality provision that restricts or
purports to restrict the ability of the Purchaser to exercise its rights under
this Agreement, including, without limitation, its rights to review the related
Servicing File and Underlying Instruments;

 

 

(i)  such
Receivable provides for (i) periodic payments of accrued and unpaid
interest on a current basis, no less frequently than monthly and (ii) such
Receivable is fully amortizing over its term and provides for a fixed,
non-usurious rate of interest (simple interest);

 

(j)  all
consents, licenses, approvals or authorizations of, or registrations or
declarations with, any governmental authority or any other Person required to
be obtained, effected or given in connection with the making, acquisition,
transfer or performance of such Receivable have, to the Seller’s knowledge,
been duly obtained, effected or given and are in full force and effect;

 

(k)  such
Receivable has not had any of its terms, conditions or provisions amended,
modified or waived in any manner inconsistent with the Seller’s or the Company’s
credit and collection policy;

 

(l)  the
related Obligor has been instructed to make all payments into a Lockbox
Account;

 

(m)  there
are no facts, events or occurrences existing which materially impair the
validity, enforceability or collectability of such Receivable or reduce the
amount payable or delay payment thereunder;

 

(n)  (i) the
Company has good and marketable title to, and is the sole owner of, such
Receivable, and (ii) the Required Receivable File required to be delivered
to U.S. Bank National Association, as the collateral custodian, with respect to
such Receivable, has been delivered to the collateral custodian;

 

(o)  the
Obligor with respect to such Receivable is an Eligible Obligor;

 

(p)  all
information, representations and warranties provided in writing by the Seller
and the Company with respect to such Receivable are true, correct and complete
in all material respects;

 

(q)  the Contract
with respect to the Receivable relates to a property located in one of the
states of the United States or the District of Columbia;

 

(r)  the home
improvements related to the Contract with respect to the Receivable have been
fully completed to the satisfaction of the related Obligor, as evidenced by a
completion certificate with respect to such Contract;

 

(s)  the
Contract with respect to the Receivable is not a revolving home equity line of
credit;

 

(t)  the
proceeds of the Contract with respect to the Receivable have been fully
disbursed and the related Obligor has no additional right to further fundings
thereunder;

 

(u)  if the
Contract with respect to the Receivable is a Mortgage Contract, the mortgage
related to such Mortgage Contract creates a valid, subsisting and enforceable
first, 

 

 

second, third or fourth
priority lien (as applicable) on the related mortgaged property and the lien
created thereby has been or will be duly recorded;

 

(v)  such
Receivable constitutes an “instrument”, “general intangible”, “tangible chattel
paper” or an “account” (each as defined in the applicable UCC); and

 

(w)  such
Receivable consists of (A) notes, drafts, acceptances, open accounts
receivable, and other obligations representing part or all of the sales price
of merchandise, insurance, or services or (B) notes or other evidence of
indebtedness resulting from loans to manufacturers, wholesalers, and retailers
of, and to prospective purchasers of, specified merchandise, insurance or
services.

 

“Existing
Loan Agreement” has the meaning set forth in Section 3.06.

 

“Financial
Statements” has the meaning set forth in Section 3.12.

 

“FCC Equity
Interests” has the meaning provided in the third paragraph of this
Agreement.

 

“including” (and, with correlative
meaning, “include,” “included” and “includes”) means
including, without limitation.

 

“Income Tax Items” shall have the
meaning set forth in Section 5.05(b).

 

“indemnified party” shall have the
meaning set forth in Section 8.04(a).

 

“Insolvency
Event” means, with respect to a specified Person, (a) the filing of a
decree or order (i) for relief by a court having jurisdiction over such
Person or any substantial part of its property in an involuntary case under any
applicable Insolvency Law now or hereafter in effect, or (ii) appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for such Person or for any substantial part of its property, or (iii) ordering
the winding-up or liquidation of such Person’s affairs, provided
that such decree or order shall remain unstayed and in effect for a period of
60 consecutive days, (b) the commencement by such Person of a voluntary
case under any applicable Insolvency Law now or hereafter in effect, or the
consent by such Person to the entry of an order for relief in an involuntary
case under any such law, (c) the consent by such Person to the appointment
of or taking possession by a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official for such Person or for any substantial
part of its property, or the making by such Person of any general assignment
for the benefit of creditors, (d) the failure by such Person generally to
pay its debts as such debts become due, or (e) the taking of action by
such Person in furtherance of any of the foregoing.

 

“Insolvency
Laws” means the Bankruptcy Code and all other applicable liquidation,
conservatorship, bankruptcy, moratorium, rearrangement, receivership,
insolvency, reorganization, suspension of payments, or similar debtor relief
laws from time to time in effect affecting the rights of creditors generally.

 

“Insolvency
Proceeding” means any case, action or proceeding before any court or other
governmental authority relating to any Insolvency Event.

 

 

“Liens”
shall have the meaning set forth in Section 3.05.

 

“Lockbox
Accounts” is defined in the Credit Agreement.

 

“Losses”
shall have the meaning set forth in Section 8.01(a).

 

“Mortgage”
means any mortgage, deed of trust or other instrument creating a first, second
or other lien on a fee simple estate in the Mortgaged Property securing a
Mortgage Contract.

 

“Mortgage
Contract” means a retail installment contract between a Contractor and one
or more Obligors which (i) evidences the obligations of such Obligors to
pay for the home improvements sold and/or installed by a Contractor and (ii) is
secured by a mortgage on the related mortgaged property, together with all
schedules, supplements and amendments thereto and each other document and
instrument related thereto.

 

“Mortgaged
Property” means the property which is subject to a Mortgage (including,
without limitation, all buildings, improvements and fixtures thereon and all
additions, alterations and replacements made at any time with respect to the
foregoing) securing a Mortgage Contract.

 

“Non-Mortgage
Contract” means a retail installment contract between a Contractor and one
or more Obligors which is not secured by a mortgage and evidences the
obligations of such Obligors to pay for the home improvements sold and/or
installed by a Contractor together with all schedules, supplements and
amendments thereto and each other document and instrument related thereto.

 

“Obligor”
means, with respect to any Receivable, any Person or Persons obligated to make
payments pursuant to or with respect to such Receivable, including any
guarantor thereof.

 

“Owner
Participant” is defined in the Trust Agreement.

 

“Owner
Trustee” is defined in the Trust Agreement.

 

“Person” means any individual, firm,
corporation, partnership, limited liability company, trust, joint venture,
governmental entity or other entity.

 

“Proceeds” means, with respect to any
Company Assets, all property that is receivable or received when such Company
Asset is collected, sold, liquidated, foreclosed, exchanged, or otherwise
disposed of, whether such disposition is voluntary or involuntary, and includes
all rights to payment with respect to any insurance relating to such Company
Asset.

 

“Purchase Date” shall have the meaning
set forth in Section 1.01.

 

“Purchase Notice” shall have the
meaning set forth in Section 1.01.

 

“Purchase Price” shall have the
meaning set forth in Section 1.03.

 

“Purchaser” shall have the meaning
provided in the introductory paragraph hereof.

 

 

“Purchaser Indemnitee” shall have the
meaning set forth in Section 8.01(a).

 

“Purchaser Material Adverse Effect”
means a material adverse effect on the ability of the Purchaser to perform its
obligations under this Agreement and the Ancillary Agreements and to consummate
the Transactions.

 

“Receivable” and “Receivables”
shall have the meaning set forth in the second paragraph of this Agreement.

 

“Receivables List” shall have the
meaning set forth in Section 1.01.

 

“Records”
means all documents relating to the Receivables, including books, records and
other information executed in connection with the origination or acquisition of
the Receivables and Related Security or maintained with respect to the
Receivables and Related Security and the related Obligors that the Company or
its designated services have generated, in which the Company has acquired an
interest or in which the Company or its designated servicer have otherwise
obtained an interest.

 

“Related
Security” means all right, title and interest of the Company in and to the
following:

 

(a) any and
all recoveries related to a Defaulted Receivable, all payments paid in respect
thereof and all monies due, to become due and paid in respect thereof and all
liquidation proceeds;

 

(b) the
Required Receivable Files and Servicing Files related to any Receivable, any
Records, and the documents, agreements, and instruments included in the
Servicing File or Records;

 

(c) all
Liens, guaranties, indemnities, warranties, letters of credit, accounts, bank
accounts and property subject thereto from time to time purporting to secure or
support payment of any Receivable (including any applicable mortgages),
together with all UCC financing statements, mortgages or similar filings signed
or authorized by an Obligor relating thereto;

 

(d) all
lockbox accounts or other accounts of the Company, to the extent amounts on
deposit therein or credited thereto relate to the Company Assets, together with
all cash and investments in each of the foregoing other than amounts earned on
investments therein;

 

(e) the
Contractor Sale Agreements and the assignment of such Contractor Sale
Agreements;

 

(f) all
records (including computer records) with respect to the foregoing; and

 

(g) all
collections, income, payments, proceeds and other benefits of each of the
foregoing.

 

“Required
Receivable File” means, for each Receivable, a file containing each of the
following items:

 

 

(a)           if such Receivable is related to a
Non-Mortgage Contract:

 

(i)            an executed copy of
the commitment letter issued by First Consumer Credit, Inc. (or FCC
Finance, LLC) to the applicable Contractor relating to such Non-Mortgage
Contract;

 

(ii)           the sole original,
executed copy of the related Non-Mortgage Contract (including any amendments,
extensions, modifications or waivers with respect thereto) with original
assignments of such Contract showing a complete chain of assignments from the
applicable Contractor to the Company;

 

(iii)          an executed copy of
the Completion Certificate related to such Non-Mortgage Contract;

 

(iv)          a copy of the
original credit application of the Obligor related to such Non-Mortgage
Contract; and

 

(v)           true and complete
copies of all other agreements, documents, any insurance policies and
instruments evidencing, securing or guarantying, or required by Applicable Law
with respect to, such Non-Mortgage Contract; and

 

(b)           if such Receivable is related to a
Mortgage Contract:

 

(i)            an executed copy of
the commitment letter issued by First Consumer Credit, Inc. (or FCC
Finance, LLC) to the applicable Contractor relating to such Mortgage Contract;

 

(ii)           the sole original,
executed copy of the related Mortgage Contract (including any amendments,
extensions, modifications or waivers with respect thereto) with original
assignments of such Contract showing a complete chain of assignments from the
applicable Contractor to the Company;

 

(iii)          a copy of the
Mortgage related to such Mortgage Contract (together with evidence of
transmittal of such Mortgage to the appropriate recording office, evidence that
all related mortgage taxes have been paid and, promptly after receipt thereof
by the servicer thereof and, in any case, within 365 days of the date of such
Mortgage Contract, evidence, in form satisfactory to the Purchaser, of
recordation of such Mortgage at the appropriate recording office) and original
assignments of such Mortgage showing a complete chain of assignments of such
Mortgage from origination to the Company (in each case, together with evidence
of transmittal of such assignments of mortgage to the appropriate recording
office, evidence that all related mortgage tax has been paid and, promptly
after receipt thereof by such servicer and, in any case, within 365 days of the
pledge of such Mortgage Contract hereunder, evidence, in form satisfactory to
the Purchaser, of recordation of such assignments of mortgage at the
appropriate recording office);

 

(iv)          a copy of the title
report related to the underlying collateral related to such Mortgage Contract;

 

 

(v)           a copy of the
original credit application of the Obligor related to such Contract; and

 

(vi)          true and complete
copies of all other agreements, documents, any insurance policies and
instruments evidencing, securing or guarantying, or required by Applicable Law
with respect to, such Mortgage Contract.

 

“Seller”
shall have the meaning provided in the first paragraph of this Agreement.

 

“Seller
Indemnitee” shall have the meaning set forth in Section 8.02(a).

 

“Seller Material Adverse Effect” means
a material adverse effect on the business, assets, financial condition or
results of operations of the Seller, or on the ability of the Seller to perform
its obligations under this Agreement and the Ancillary Agreements and to
consummate the Transactions.

 

“Servicing File” means for each
Receivable, (a) copies (as opposed to originals) of each of the documents
included in the Required Receivable File definition, (b) to the extent
applicable for the related Receivable, the original executed (i) guaranty,
(ii) credit agreement, (iii) loan agreement, (iv) note purchase
agreement, (v) promissory note, (vi) acquisition agreement (or
similar agreement), (vii) security agreement and (viii) UCC financing
statement(s), in each case as set forth on the Receivables List, (c) a
copy of each Contractor Sale Agreement related to such Receivable, and (d) true
and complete copies of all other agreements, documents and instruments
evidencing, securing or guarantying, or required by Applicable Law with respect
to any Contractor Sale Agreement related to such Receivable.

 

“Solvent”
means, as to any Person at any time, having a state of affairs such that all of
the following conditions are met:  (a) the
fair value of the property of such Person is greater than the amount of such
Person’s liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated for
purposes of Section 101(32) of the Bankruptcy Code; (b) the present
fair saleable value of the property of such Person in an orderly liquidation of
such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts and other liabilities as they
become absolute and matured; (c) such Person is able to realize upon its
property and pay its debts and other liabilities (including disputed,
contingent and unliquidated liabilities) as they mature in the normal course of
business; (d) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person’s ability to pay as such
debts and liabilities mature; and (e) such Person is not engaged in a
business or a transaction, and does not propose to engage in a business or a
transaction, for which such Person’s property would constitute unreasonably
small capital.

 

“Straddle
Period” shall have the meaning set forth in Section 5.05(a).

 

“subsidiary” of any Person means another
Person, an amount of the voting securities, other voting ownership or voting
partnership interests of which is sufficient to elect at least a majority of
its Board of Directors or other governing body (or, if there are no such voting
interests, 50% or more of the equity interests of which) is owned directly or
indirectly by such first Person or by another subsidiary of such first Person.

 

 

“Tax”
(and, with correlative meaning, “Taxes”) means any U.S. federal, state,
local or foreign net income, gross income, gross receipts, property, sales,
use, license, excise, franchise, employment, payroll, withholding, alternative
or add-on minimum, ad valorem, value-added, transfer or excise tax, windfall
profit, severance, production, stamp, environmental (including taxes under Code
Section 59A) or any other tax, custom, duty, governmental fee or other
like assessment or charge of any kind whatsoever, together with any interest or
penalty, imposed by any governmental authority.

 

“Tax Return”
means any return, report or similar statement required to be filed with respect
to any Tax (including any attached schedules), including any information
return, claim for refund, amended return or declaration of estimated Tax.

 

“Third
Party Claim” shall have the meaning set forth in Section 8.04(a).

 

“Transactions” means the transactions
contemplated by this Agreement and the Ancillary Agreements.

 

“Trust Agreement” means the Amended
and Restated Trust Agreement, by and among U.S. Bank Trust National
Association, as the owner trustee, CLST Asset I, LLC, as the owner participant,
and Seller dated as of November 10, 2008, as amended from time to time.

 

“Underlying Instruments” means the
Mortgage Contract or Non-Mortgage Contract and each other agreement that
governs the terms of or secures the obligations represented by such Receivable
or of which the holders of such Receivable are the beneficiaries.

 

 

Exhibit B

 

Form of
Assignment of Equity Interests

 

FOR VALUE RECEIVED, DRAWBRIDGE SPECIAL OPPORTUNITIES
FUND LP, a Delaware limited partnership (the “Assignor”) does hereby assign,
convey, transfer, deliver and set over unto CLST Asset I, LLC, a Delaware limited
liability company (hereinafter referred to as “Assignee”) all right, title and
interest in and to all equity interests owned by Assignor (the “Assigned
Interest”) in FCC Investment Trust I, a Delaware statutory trust (the “Company”).

 

Immediately prior to this Assignment, the Assignor
owns all of the equity interests in the Company.

 

TO HAVE AND TO HOLD all right, title and interest in
and to the Assigned Interest is hereby transferred, assigned, conveyed,
delivered and set over unto the Assignee, its successors and assigns, for its
own use and benefit forever, including, without limitation, all rights to
capital accounts and distributions, and all rights to income, losses and tax
credits. After giving effect to this Assignment, the Assignee will have no
further interest in the Company.

 

The parties shall execute and deliver such further
instruments to do such further acts as may be required in good faith to
carryout the intent and purpose of this Assignment.

 

IN WITNESS WHEREOF, the Assignor and Assignee have
hereby executed this Assignment of Equity Interest as of November 10,
2008.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  DRAWBRIDGE SPECIAL
  OPPORTUNITIES FUND LP

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  DRAWBRIDGE SPECIAL

  
	
   

  	
   

  	
  OPPORTUNITIES GP LLC,

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  CLST ASSET I, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]