Document:

cfsbancorpexhibit10_2123107.htm

    Exhibit
      10.2

     

     

     

    AGREEMENT

     

    This
      Agreement is entered into by and between Citizens Financial Bank and CFS
      Bancorp, Inc., both located at 707 Ridge Road, Munster, Indiana (collectively,
      “Employer”) and Thomas L. Darovic ("Employee").

     

    WHEREAS,
      the parties previously entered into those certain employment agreements dated
      July 1, 2006 (collectively, the “Employment
      Agreements”);

     

    WHEREAS,
      the Employer, by notice given to Employee prior to the date hereof in accordance
      with the terms of Employment Agreements, has determined to terminate Employee’s
      employment with Employer for reasons other than for Cause (and not due to
      Disability); and

     

    WHEREAS,
      the parties desire to enter into this Agreement regarding the termination of
      his
      employment with the Employer.

     

    NOW,
      THEREFORE, in consideration of the mutual promises, the receipt and adequacy
      of
      which are acknowledged, the parties agree as follows:

     

    1.  Termination
      of Employment.  Employee’s last day of employment with Employer
      shall be January 31, 2008 (“Termination Date”), which is more than 30 days
      following the date notice was given to Employee.  Employee hereby
      resigns from all offices, directorships and trusteeships effective the
      termination of his employment and acknowledges that, in connection
      therewith.

     

    2.  Separation
      Payments and Benefits.  Upon Employee’s execution and delivery
      to Employer of a general release of all claims against Employer and others
      on or
      within 15 days after the Termination Date, in the form set forth as Exhibit
      A
      hereto, which general release is not revoked, Employee shall be entitled to
      the
      following payments and benefits:

     

    A. Pay
      Employee an aggregate cash sum of $196,449, which shall be payable one-half
      on
      the first regular payroll date day following the effective date of the general
      release and the second one-half on the first regular payroll date in January,
      2009.

     

    B. Maintain
      and provide to Employee, at no cost to Employee, until the first anniversary
      of
      the Termination Date participation in the following employee benefit plans
      in
      which he participated on the Termination Date: health and dental benefits on
      the
      same terms as active employees as in effect on the Termination Date; provided,
      (i) such health and dental benefits shall be concurrent with Employee’s
      continuation rights under the Consolidated Omnibus Reconciliation Act of 1985,
      as amended (“COBRA”); (ii) if Employer during such one-year period shall
      terminate or materially reduce any such health and dental benefits offered
      to
      active employees, Employer shall arrange to provide Employee substantially
      similar benefits for the unexpired portion of the one-year period as provided
      prior to such termination or material reduction; and (iii) clause (ii)
      notwithstanding, Employer shall discontinue such benefits to Employee during
      the
      one-year benefit period to the extent that Employee is entitled to substantially
      similar benefits in connection with full-time employment with a subsequent
      employer or otherwise.

     

    C. On
      the
      date of the first installment payment under paragraph 2(A) hereof, Employer
      shall pay to Employee a cash lump sum of $6,316.  This amount is paid
      to Employee in lieu of continuing benefits for one year following the
      Termination Date, and which amount

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    represents
      the premium required to continue group life insurance and group long-term
      disability insurance benefits for such period, because Employer
      is prohibited from providing such benefits on a post-employment basis under
      the terms of the Employer’s applicable benefit plans and underlying group
      insurance contracts.  Employer shall assist and cooperate with
      Employee in obtaining a conversion and assignment of such life insurance and
      long-term disability insurance contracts to Employee from the
      insurer.

     

    D. On
      the
      date of the first installment payment under paragraph 2(A) hereof, Employer
      shall pay to Employee a cash lump sum of $12,500, which but for this Agreement
      would not be payable to Employee.  Employee acknowledges that he will
      forfeit all unvested restricted stock and other unvested long-term incentives
      on
      the Termination Date, and all vested stock options will be exercisable following
      the Termination Date, as provided under the terms of the applicable incentive
      plans and award agreements thereunder.

     

    E. Notwithstanding
      Employee’s termination of employment prior to the date 2007 annual bonuses are
      payable, Employee shall be entitled to receive a bonus for fiscal year 2007
      to
      the extent earned based on performance and otherwise payable in accordance
      with
      the terms of the executive annual incentive plan which (but for this Agreement
      otherwise would not be payable to Employee) shall be payable when bonuses are
      payable to senior executives of Employer.

     

    F. The
      payments and benefits provided to Employee under this paragraph 2 shall be
      subject to standard tax withholding and other applicable
      deductions.

     

    3.  Return
      of Property.  Employee covenants that he has returned all of
      Employer’s property, which he has in his possession,  including, but
      not limited to, all customer lists, be they electronic and/or hard copies,
      the
      Employer-owned automobile, and any other Employer-owned computer equipment,
      cell
      phone, wireless e-mail equipment and other Employer-owned equipment in his
      possession or control.

     

    4.  No
      Admission of Wrongdoing.  Employee agrees neither this
      Agreement nor the furnishing of the consideration for the release under
      paragraph 3 shall be deemed or construed at any time for any purpose as an
      admission by Employer of any liability or unlawful conduct of any
      kind.

     

    5.  Confidentiality;
      Trade Secrets; Nonsolicitation.

     

    A. Employee
      acknowledges the continuing applicability of his covenant under Section 3(d)
      of
      each Employment Agreement and further agrees to maintain as confidential any
      and
      all information or knowledge concerning Employer’s business and its customers
      that is not generally known in the banking industry. Employee also agrees to
      keep the existence of and the terms and conditions of this Agreement
      confidential, and that Employee as well as Employee’s heirs, executors,
      administrators and agents, will not directly or indirectly disclose them to
      any
      person, firm or entity.

     

    B. Section
      3(e)(iv) of the Employment Agreement shall apply as if Employee’s employment
      voluntarily terminated without Good Reason; provided, Section 3(e)(iv) of the
      Employment Agreement is deemed amended to also include a restriction that
      Employee not directly or indirectly hire any person who is in the employ of
      the
      Employer on the date hereof.

     

    6.  No
      Disparagement.  Employee agrees not to engage in any direct or
      indirect conduct or communications, written or oral, which may in any way be
      deemed to be disparaging of Employer.

     

    7.  Remedies.  In
      addition to all remedies available to Employer hereunder and under the
      Employment Agreement, which are reserved hereby, Employee shall forfeit all
      unpaid amounts and 

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    benefits
      provided under paragraph 2 if he shall breach either covenant set forth in
      paragraphs 3, 5 or 6 hereof. 
       

    

    8.  Amendment.  This
      Agreement may not be modified, altered or changed except upon express written
      consent of both parties wherein specific reference is made to this
      Agreement.

     

    9.  Entire
      Agreement.  This Agreement sets forth the entire agreement
      between the parties hereto and fully supersedes any prior agreements or
      understandings between the parties including, without limitation, the Employment
      Agreements.  Employee acknowledges Employee has not relied on any
      representations, promises, or agreements of any kind made to Employee in
      connection with Employee’s decision to enter this Agreement.

     

    10.  Binding
      Agreement.  This Agreement shall be binding on all of the
      parties and their respective successors, heirs, legal representatives and
      assigns (without regard for its conflict of laws
      principles).

     

    11.  Governing
      Law.  This Agreement shall be construed in accordance with the
      laws of the State of Indiana.

     

    IN
      WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this
      Agreement as of the later date set forth below:

     

    CFS
      BANCORP, INC.

     

    BY: /s/ Thomas
      F.
      Prisby                              

          
      Thomas F. Prisby

     

     

     

    CITIZENS
      FINANCIAL BANK, Employer

     

    BY: /s/
      Thomas F.
      Prisby                                

          
      Thomas F. Prisby

     

    DATE: December
      18, 2007                            

     

     

     

    HAVING
      ELECTED TO EXECUTE THIS AGREEMENT, TO RECEIVE THE SUMS AND BENEFITS SET FORTH
      HEREIN, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS
      INTO
      THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE HAS
      OR
      MIGHT HAVE AGAINST EMPLOYER.  EMPLOYEE HAS READ THIS AGREEMENT AND
      UNDERSTANDS THAT ITS TERMS ARE LEGALLY ENFORCEABLE.  EMPLOYEE HAS HAD
      THE OPPORTUNITY TO NEGOTIATE WITH EMPLOYER REGARDING THIS AGREEMENT, AND HAS
      HAD
      THE OPPORTUNITY TO CONFER WITH AN ATTORNEY FOR ASSISTANCE AND
      ADVICE.  EMPLOYEE HAS ENTERED INTO THIS AGREEMENT KNOWINGLY AND
      VOLUNTARILY.

     

    
     
/s/
Thomas
      L. Darovic            

    Thomas
      L. Darovic

     

    DATE: December
      31,
      2007                       

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
 

    EXHIBIT
      A1

     

    GENERAL
      RELEASE OF ALL CLAIMS

     

    This
      General Release of All Claims (“Release”) is made in consideration of severance
      payments and other benefits provided to the undersigned employee (“Employee”)
      under that certain Agreement with Citizens Financial Bank and CFS Bancorp,
      Inc.
      (collectively and each separately, “Employer”), dated December 31, 2007
      (“Agreement”).  All capitalized terms not defined herein have the
      meaning set forth in the Agreement.

     

    (A) For
      and
      in consideration for the payments and benefits provided under paragraph 2
      of the Agreement, Employee, on his own behalf and on behalf of his heirs,
      executors, administrators, successors and assigns (collectively, the “Releasing
      Parties”), knowingly and voluntarily releases and forever discharges Employer
      and Employer’s affiliates, subsidiaries, divisions, successors and assigns in
      such capacity, and the current, future and former employees, officers,
      directors, trustees. attorneys and agents (collectively, the “Released
      Parties”), from any and all claims, causes of action, demands, fees and
      liabilities of any kind whatsoever, whether known or unknown, against the
      Released Parties, the Releasing Parties has, has ever had or may have as of
      the
      date of execution of this Agreement, including, but not limited to, any alleged
      violation of the National Labor Relations Act, as amended; Title VII of the
      Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991;
      Sections 1981 through 1988 of Title 42 of the United States Code, as
      amended; the Employee Retirement Income Security Act of 1974, as amended; the
      Immigration Reform and Control Act, as amended; the Americans with Disabilities
      Act of 1990, as amended; the Age Discrimination in Employment Act of 1967,
      as
      amended; the Older Workers Benefit Protection Act of 1990; the Worker Adjustment
      and Retraining Notification Act, as amended; the Occupational Safety and Health
      Act, as amended; the Family and Medical Leave Act of 1993; Illinois Human Rights
      Act; any other federal, state or local civil or human rights laws or any other
      local, state or federal law, regulation or ordinance; any public policy,
      contract, tort, and common law; and any allegation for costs, fees, or other
      expenses including attorneys’ fees incurred in these
      matters.

     

    (B) Notwithstanding
      anything herein to the contrary, the sole matters to which the above release
      of
      claims does not apply are Employee’s rights of indemnification and
      directors and officers liability insurance coverage to which Employee was
      entitled immediately prior to the Termination Date with regard to Employee’s
      service as an officer and director of Employer and Employee’s rights under
      any tax-qualified pension and claims for accrued vested benefits under any
      other
      employee benefit plan, policy or arrangement maintained by Employer or under
      COBRA.

     

    (C) The
      Releasing Parties waive the Releasing Parties’ right to file any charge or
      complaint against the Released Parties arising out of Employee’s employment with
      or separation from Employer before any federal, state or local court or any
      state or local administrative agency, except where such waivers are prohibited
      by law.  The release under this Release shall not prevent the
      Releasing Parties from filing a charge with the Equal Employment Opportunity
      Commission, any other federal government agency, and/or any government agency
      concerning claims of discrimination, although the Releasing Parties waive the
      Employee’s right to recover any damages or other relief in any claim or suit
      brought by or through the Equal Employment Opportunity Commission or any other
      state or local agency on behalf of the Releasing Parties under the Age
      Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964
      as
      amended, the Americans with Disabilities Act, or any other federal or state
      discrimination law, except where such waivers are prohibited by
      law.

     

    (D) Employee
      affirms he has not filed, has not caused to be filed, and is not presently
      a
      party to, any claim, complaint, or action against any of the Released Parties
      in
      any forum or form. Employee 

    ______________________________

    
      1 This
        Release will be executed between January 31 and February 15,
        2008.

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    further
      affirms that he has been paid and/or has received all compensation, wages,
      bonuses, commissions, and/or benefits to which Employee may be entitled and
      no
      other compensation, wages, bonuses, commissions and/or benefits are due to
      Employee, except as provided in paragraph 2 of the
      Agreement.  Employee also affirms he has no known workplace injury.

       

      (E) Employee
        has been advised that he had up to twenty-one (21) calendar days, from the
        date on which the Agreement was first tendered to Employee, to review the
        Agreement, which included this Release as a Exhibit A thereto, and has been
        advised in writing to consult with an attorney prior to execution of the
        Agreement and this Release.  Employee agrees any
        modifications, material or otherwise, made to the Agreement prior to or after
        its execution do not restart or affect in any manner the original twenty-one
        (21) calendar day consideration period.

    

     

    (F) Employee
      may revoke this Release for a period of seven (7) calendar days following
      the day Employee executes and delivers this Release to Employer.  Any
      revocation within this period shall be submitted, in writing, to Employer and
      state, “I hereby revoke my acceptance of our Agreement.”  The
      revocation shall be personally delivered to Employer’s Chief Executive Officer,
      or his designee, or mailed to Employer, Attention to such individual, addressed
      to Employer’s headquarters offices, postage prepaid, and postmarked within seven
      (7) calendar days of execution of this Agreement.  This Release
      and all payments and benefits to which Employee shall become entitled under
      paragraph 2 of the Agreement shall become effective and enforceable on the
      first
      (1st) day following the expiration of the seven (7)-day revocation period in
      which this Release is not revoked.  If the last day of the revocation
      period is a Saturday, Sunday, or legal holiday in Indiana, then the seven
      (7)-day revocation period shall not expire until the next following day which
      is
      not a Saturday, Sunday, or legal holiday.

     

    (G) This
      Release shall be governed by the internal laws (and not the choice of laws)
      of
      the State of Indiana, except for the application of pre-emptive Federal
      law.

     

    PLEASE
      READ THIS AGREEMENT CAREFULLY.  IT CONTAINS A RELEASE OF ALL KNOWN AND
      UNKNOWN CLAIMS.

     

     

     

     

     

    Date:
      ______________,
      2008                                     ____________________________________

    Thomas
      L.
      Darovic

     

    

      

    

     
      

        
          
            
            

          

          
            5Filed by Automated Filing Services Inc. (604) 609-0244 - Searchlight Minerals Corp. - Exhibit 10.1

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND ARE PROPOSED TO BE ISSUED
IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT.
UPON ANY SALE, SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR
OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT IN
ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
ACT.

REGULATION S SUBSCRIPTION AGREEMENT

THIS AGREEMENT is made effective as of the ___ day of
December, 2007. 

BETWEEN: 

  
    
      
        
          ARLINGTON GROUP LIMITED, a Bermuda registered
            company having a corporate address at Thistle House, 4 Burnaby Street,
            Hamilton HM11, Bermuda 

          (hereinafter called the "Subscriber") 

        

      

    

  

OF THE FIRST PART 

AND:

  
    
      
        
          SEARCHLIGHT MINERALS CORP., a Nevada
            corporation, of #120 - 2441 W. Horizon Ridge Pkwy., Henderson, NV
            89052 

          (hereinafter called the “Corporation") 

        

      

    

  

OF THE SECOND PART 

THE PARTIES HEREBY AGREE AS FOLLOWS: 

1.                     
DEFINITIONS 

1.1                    The
following terms will have the following meanings for all purposes of this
Agreement. 

	 	(a) 	
      "Agreement" means this Agreement, and all schedules and
      amendments to in the Agreement.

	 	 	 
	 	(b) 	
      “Common Stock” means the shares of Common Stock of the
      Corporation, $0.001 par value per share.

	 	 	 
	 	(c) 	
      "Exchange Act" means the United States Securities
      Exchange Act of 1934, as amended.

	 	 	 
	 	(d) 	
      “Subscriber” means the Subscriber executing the signature
      page to this Agreement.

	 	 	 
	 	(e) 	
      "Offering" means the offering of the Units by the
      Corporation.

2

	 	(f) 	
      “Purchase Price” means the purchase price payable by the
      Subscriber to the Corporation in consideration for the purchase and sale
      of the Units in accordance with Section 2.1 of this Agreement.

	 	 	 
	 	(g) 	
      "SEC" means the United States Securities and Exchange
      Commission.

	 	 	 
	 	(h) 	
      "Securities Act" means the United States Securities Act
      of 1933, as amended.

	 	 	 
	 	(i) 	
      "Shares" means those shares of Common Stock to be
      purchased by the Subscriber and comprising a portion of the
  Units.

	 	 	 
	 	(j) 	
      “Unit” means a unit consisting of one (1) Share and
      one-half (1⁄2) Warrant.

	 	 	 
	 	(k) 	
      “Warrant” means one full share purchase warrant entitling
      the Holder to purchase one Share at a price of $2.40 per share during the
      period from the date of issue to the date that is two (2) years from the
      date of issue.

	 	 	 
	 	(l) 	
      “Warrant Shares” means the Common Stock issuable upon
      exercise of the Warrants.

1.2                    All
dollar amounts referred to in this agreement are in United States currency,
unless expressly stated otherwise. 

2.                     
PURCHASE AND SALE OF UNITS 

2.1                    Subject
to the terms and conditions of this Agreement, the Subscriber hereby subscribes
for and agrees to purchase from the Corporation such number of Units as is set
forth upon the signature page hereof at a price equal to $1.60 per Unit. Upon
execution, the subscription by the Subscriber will be irrevocable. 

2.2                    The
Purchase Price is payable by the Subscriber on execution of this Subscription
Agreement and will be advanced to the Corporation. 

2.3                   
Upon execution by the Corporation, the Corporation agrees to sell such Units to
the Subscriber for the Purchase Price subject to the Corporation's right to sell
to the Subscriber such lesser number of Units as it may, in its sole discretion,
deem necessary or desirable. 

2.4                    Any
acceptance by the Corporation of the Subscription is conditional upon compliance
with all securities laws and other applicable laws of the jurisdiction in which
the Subscriber is resident. Each Subscriber will deliver to the Corporation all
other documentation, agreements, representations and requisite government forms
required by the lawyers for the Corporation as required to comply with all
securities laws and other applicable laws of the jurisdiction of the Subscriber.

2.5                    Pending
acceptance of this subscription by the Corporation, all funds paid by the
Subscriber shall be deposited by the Corporation and immediately available to
the Corporation for its corporate purposes. In the event the subscription is not
accepted, the subscription funds will constitute a non-interest bearing demand
loan of the Subscriber to the Corporation. 

2.6                   
The Subscriber hereby authorizes and directs the Corporation to deliver the
securities to be issued to such Subscriber to the Subscriber’s address for
notice indicated in Section 5.1 of this Agreement. 

3

2.7                   
The Subscriber acknowledges and agrees that the subscription for the Units and
the Corporation's acceptance of the subscription is not subject to any minimum
subscription for the Offering. 

2.8                   
The Subscriber acknowledges and agrees that the Corporation will issue to
Arlington Group Limited 156,250 shares of Common Stock, equal to 5% of the total
number of Units to be sold under the Offering, as a commission in connection
with the Offering.

3.                     
REGULATION S AGREEMENTS OF THE SUBSCRIBER 

3.1                    The
Subscriber represents and warrants to the Corporation that the Subscriber is not
a “U.S. Person” as defined by Regulation S of the Securities Act and is not
acquiring the Units for the account or benefit of a U.S. Person. 

A “U.S. Person” is defined by
Regulation S of the Securities Act to be any person who is: 

	 	(a) 	
      any natural person resident in the United
      States;

	 	 	 	 
	 	(b) 	
      any partnership or corporation organized or
      incorporated under the laws of the United States;

	 	 	 	 
	 	(c) 	
      any estate of which any executor or administrator is a
      U.S. person;

	 	 	 	 
	 	(d) 	
      any trust of which any trustee is a U.S.
      person;

	 	 	 	 
	 	(e) 	
      any agency or branch of a foreign entity located in
      the United States;

	 	 	 	 
	 	(f) 	
      any non-discretionary account or similar account
      (other than an estate or trust) held by a dealer or other fiduciary
      organized, incorporate, or (if an individual) resident in the United
      States; and

	 	 	 	 
	 	(g) 	
      any partnership or corporation if:

	 	 	 	 
	 		(i) 	
      organized or incorporated under the laws of any
      foreign jurisdiction; and

	 	 	 	 
	 		(ii) 	
      formed by a U.S. person principally for the purpose of
      investing in securities not registered under the Securities Act, unless it
      is organized or incorporated, and owned, by accredited Subscribers [as
      defined in Section 230.501(a) of the Securities Act] who are not natural
      persons, estates or trusts.

3.2                   
The Subscriber acknowledges that the Subscriber was not in the United States at
the time the offer to purchase the Units was received.

3.3                   
The Subscriber acknowledges that the Units, the Shares the Warrants and the
Warrant Shares are “restricted securities” within the meaning of the Securities
Act and will be issued to the Subscriber in accordance with Regulation S of the
Securities Act. 

3.4                   
The Subscriber agrees not to engage in hedging transactions with regard to the
Units, the Shares, the Warrants or the Warrant Shares unless in compliance with
the Securities Act. 

4

3.5                    The
Subscriber and the Corporation agree that the Corporation will refuse to
register any transfer of the Units, the Shares, the Warrants or the Warrant
Shares not made in accordance with the provisions of Regulation S of the
Securities Act, pursuant to registration under the Securities Act, pursuant to
an available exemption from registration, or pursuant to this Agreement.

3.6                    The
Subscriber agrees to resell the Units, the Shares, the Warrants and the Warrant
Shares only in accordance with the provisions of Regulation S of the Securities
Act, pursuant to registration under the Securities Act, or pursuant to an
available exemption from registration pursuant to the Securities Act. 

3.7                    The
Subscriber acknowledges and agrees that all certificates representing the Units,
the Shares, the Warrants and the Warrant Shares will be endorsed with the
following legend in accordance with Regulation S of the Securities Act:

  
    
      
        
          “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
            HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES
            ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
            THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION
            S PROMULGATED UNDER THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE
            REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
            WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION
            UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
            REGISTRATION UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING
            THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
            SECURITIES ACT.” 

        

      

    

  

4.                     
REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER 

The Subscriber, represents and warrants to the Corporation as
follows, and acknowledges that the Corporation is relying upon such covenants,
representations and warranties in connection with the sale of the Units to such
Subscriber: 

4.1                    The
Subscriber is an investor in securities of companies in the development stage
and acknowledges that it is able to fend for itself, can bear the economic risk
of its investment, and has such knowledge and experience in financial or
business matters such that it is capable of evaluating the merits and risks of
the investment in the Units. The Subscriber can bear the economic risk of this
investment, and was not organized for the purpose of acquiring the Units. 

4.2                    The
Subscriber has had full opportunity to review the Corporation’s filings with the
SEC pursuant to the Exchange Act, including the Corporation’s annual reports on
Form 10-KSB and quarterly reports on Form 10-QSB, and additional information
regarding the business and financial condition of the Corporation. The
Subscriber believes it has received all the information it considers necessary
or appropriate for deciding whether to purchase the Units. The Subscriber
further represents that it has had an opportunity to ask questions and receive
answers from the Corporation regarding the terms and conditions of the Offering
and the business, properties, prospects and financial condition of the
Corporation. The Subscriber has had full opportunity to discuss this information
with the Subscriber’s legal and financial advisers prior to execution of this
Agreement.

4.3                    The
Subscriber believes it has received all the information it considers necessary
or appropriate for deciding whether to purchase the Units. The Subscriber
further represents that it has had an opportunity to ask questions and receive
answers from the Corporation regarding the terms and conditions of the Offering
and the business, properties, prospects and financial condition of the 

5

Corporation. The Subscriber has had full opportunity to discuss
this information with the Subscriber’s legal and financial advisers prior to
execution of this Agreement. 

4.4                   
The Subscriber acknowledges that the offering of the Units by the Corporation
has not been reviewed by the SEC and that the Units are being issued by the
Corporation pursuant to an exemption from registration under the Securities Act.

4.5                    The
Subscribers understands that the Units it is purchasing are characterized as
"restricted securities" under the Securities Act inasmuch as they are being
acquired from the Corporation in a transaction not involving a public offering
and that under such laws and applicable regulations such securities may be
resold without registration under the Securities Act only in certain limited
circumstances. In this connection, the Subscriber represents that it is familiar
with SEC Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act. 

4.6                   
The Units will be acquired by the Subscriber for investment for the Subscriber's
own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Subscriber has no present
intention of selling, granting any participation in, or otherwise distributing
the same. The Subscriber does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Units. 

4.7                    An
investment in the Corporation is highly speculative and only Subscribers who can
afford the loss of their entire investment should consider investing in the
Corporation and the Units. The Subscriber is financially able to bear the
economic risks of an investment in the Corporation. 

4.8                    The
Subscriber recognizes that the purchase of the Units involves a high degree of
risk in that the Corporation is in the early stages of development of its
business and may require substantial funds in addition to the proceeds of this
private placement. 

4.9                   
The Subscriber is not aware of any advertisement of the Units. 

4.10                  This
Agreement has been duly authorized, validly executed and delivered by the
Subscriber. 

4.11                 
The Subscriber has satisfied himself or herself as to the full observance of the
laws of his or her jurisdiction in connection with any invitation to subscribe
for the Units or any use of this Agreement, including (i) the legal requirements
within his jurisdiction for the purchase of the Units; (ii) any foreign exchange
restrictions applicable to such purchase; (iii) any governmental or other
consents that may need to be obtained; (iv) the income tax and other tax
consequences, if any, that may be relevant to an investment in the Units; and
(v) any restrictions on transfer applicable to any disposition of the Units
imposed by the jurisdiction in which the Subscriber is resident. 

5.                     
MISCELLANEOUS 

5.1                    Any
notice or other communication given hereunder shall be deemed sufficient if in
writing and sent by registered or certified mail, return receipt requested,
addressed to the Corporation, at its corporate office at #120 - 2441 W. Horizon
Ridge Pkwy., Henderson, NV 89052, Attention: Ian R. McNeil, President and CEO,
and to the Subscriber c/o Arlington Group Asset Management Limited, 18 Pall
Mall, London, England, SW13 0H2. Notices shall be deemed to have been given on
the date of mailing, except notices of change of address, which shall be deemed
to have been given when received. 

6

5.2                   
The parties agree to execute and deliver all such further documents, agreements
and instruments and take such other and further action as may be necessary or
appropriate to carry out the purposes and intent of this Subscription Agreement.

5.3                    Notwithstanding
the place where this Subscription Agreement may be executed by any of the
parties hereto, the parties expressly agree that all the terms and provisions
hereof shall be construed in accordance with and governed by the laws of the
State of Nevada. 

IN WITNESS WHEREOF, this Subscription Agreement is
executed as of the day and year first written above. 

	Number of Units Subscribed For: 	3,125,000 Units 
	 	 
	Signature of Subscriber or 	  
	Authorized Signatory for Subscriber: 	  
	(if Subscriber is not an individual) 	/s/
        Nicholas Barham 

	 	 
	Name of Authorized Signatory for Subscriber: 	  
	(if Subscriber is not an individual) 	Nicholas
        Barham 

	 	 
	Name of Subscriber: 	ARLINGTON GROUP LIMITED 
	 	 
	Address of Subscriber: 	Thistle House, 4 Burnaby Street 
	 	 
	  	Hamilton, HM11, Bermuda 
	 	 
	Jurisdiction of Incorporation of Subscriber: 	  
	(If Subscriber is a Corporation) 	Bermuda 
	 	 
	Registration Instructions: 	  
	 	 
	Name: 	 
    
	 	 
	Account Reference (if applicable): 	 
    
	 	 
	Address 	 
    
	 	 
	 	 
	  	  
	  	  
	ACCEPTED BY: 	  
	 	 
	SEARCHLIGHT MINERALS CORP. 	  
	 	 
	Signature Of Authorized Signatory: 	/s/ Ian R. McNeil 
	 	 
	Name of Authorized Signatory: 	Ian R. McNeil 
	 	 
	Position of Authorized Signatory: 	PRESIDENT 
	 	 
	Date of Acceptance: 	December 26, 2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]