Document:

Exhibit 10.5

                               INDEMNITY AGREEMENT

        AGREEMENT, effective as of the ______ day of July, 2004, by and between
Warrantech Corporation (hereinafter "Warrantech or the Indemnitor") and Butler
Financial Solutions LLC, (hereinafter "Butler"), Reliance Warranty Company
(hereinafter "RWC"), SPG Financial Corp. (hereinafter "SPG"), the current
members and officers of Butler, RWC and SPG, Harris Miller, Karen Parker and
Paula Graff, (collectively and individually, the "Indemnitee(s) ").

        Now, therefore, for good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:

        1.      Except if any Indemnitee's own negligence or wrongdoing is a
contributing cause of any material amount of damage incurred by the
Indemnitee(s), and only if the Indemnitee(s) fully comply with Section 2 below,
Warrantech, the Indemnitor, hereby agrees to indemnify, in full, the
Indemnitee(s) against any and all costs or damages they incur individually,
collectively or corporately in the defense, or settlement of any litigation,
including as a result of any adverse judgment resulting from any lawsuit that
arises from or relates in any way to, American Auto Guardian Inc., its
affiliates and subsidiaries and/or American Auto Guardian Inc.'s contract
holders (collectively, "Auto Guardian"). The indemnity provided under this
Agreement extends to any litigation, claims or damages that result from, or are
caused by, Warrantech's wrongful use of monies in the Accounts (as hereinafter
defined) and arising out of a claim by Auto Guardian against such Indemnitees in
connection with the service contracts and warranties issued by RWC to Auto
Guardian (all of the foregoing indemnification obligations, the "Indemnified
Obligations"). "Accounts" shall mean Reliance Warranty Company concentration
account No. 649434123, Reliance Warranty Company automotive claims account No.
649434149 and Reliance Warranty Company CPS claims account No. 649434131.

        2.      As a condition of any Indemnitee receiving an indemnification
under Section 1, the Indemnitees agree that (a) Warrantech shall have exclusive
control in the defense of any claims or litigation with counsel selected by
Warrantech and with Warrantech paying all defense fees and costs directly to the
counsel retained for the Indemnitee, (b) the Indemnitee(s) shall fully cooperate
fully with Warrantech in developing and presenting defenses to any such claims,
including by providing truthful and accurate information that is within the
Indemnitee's knowledge, (c) any Indemnitee seeking Indemnification from
Warrantech who receives a claim notice or complaint or any written
correspondence and materials relating to a claim or possible claim from or
relating to Auto Guardian shall notify Warrantech within ten (10) days of
receiving same, (d) the Indemnitee(s) shall furnish Warrantech with a copy of
each such claim, notice, written correspondence relating to the claims within
ten (10) days of receiving same, and (e) the Indemnitee(s) shall not settle or
compromise any such claim without Warrantech's previous written consent.

        3.      Notwithstanding anything set forth in this Agreement,
Warrantech's liability under this Agreement shall not apply to the extent
Reliance Insurance Company (In Liquidation) breaches its representation and
warranty in Section 2.7 of the Stock Purchase Agreement dated November 24, 2003
between Butler Financial Solutions, LLC and Reliance Insurance Company (In
Liquidation).

        4.      Except as otherwise specified in this Agreement, all notices,
requests or other communications hereunder shall be in writing and shall be
deemed to have been duly given if delivered or within two business days of
dispatch if sent by reputable overnight courier and telecopier addressed as
follows:

                If to Warrantech: Warrantech Corporation, 2200 Highway 121,
                Suite 100, Bedford, TX 76021, Attn.: Joel San Antonio,
                Telecopier No. (817) 785-1368;
<PAGE>

                If to Butler, RWC, SPG, Paula Graff personally and/or Karen
                Parker personally: Butler Financial Solutions, LLC, 2300 NW
                Corporate Blvd, Suite 214, Boca Raton, FL 33431, Attn.: Karen
                Parker and Paul Graff, Telecopier (561-988-0016)

                If to Harris Miller: 1936 Lake View Place, Martinez, California
                94553, Attn.: Harris Miller, Telecopier No. (925) 691-0870;

                Or to such other address as may have been furnished in writing
                to the party giving the notice by the party to whom notice is to
                be given.

        5.      EACH OF THE INDEMNITEES AND WARRANTECH HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER,
OR IN CONNECTION WITH, THIS AGREEMENT, IT BEING AGREED THAT ALL SUCH TRIALS
SHALL BE CONDUCTED SOLELY BY A JUDGE. EACH OF HM AND WC CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF HM OR WC HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE OTHER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVERS. EACH OF THE INDEMNITEES AND WARRANTECH AGREES AND
ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED BY INDEPENDENT COUNSEL IN CONNECTION
WITH THIS AGREEMENT OR BEEN ADVISED THAT IT SHOULD BE REPRESENTED BY INDEPENDENT
COUNSEL IN CONNECTION WITH THIS AGREEMENT. IF HM OR WC HAS DECIDED NOT TO BE
REPRESENTED BY INDEPENDENT COUNSEL IN CONNECTION WITH THIS AGREEMENT, IT
IRREVOCABLY AND FOREVER WAIVES ANY AND ALL DEFENSES OR RIGHTS ARISING OUT OF OR
RELATED TO SAID DECISION. NOTWITHSTANDING THE FOREGOING, IF ANY CLAIM IS
COMMENCED BY AUTO GUARDIAN AND ANY OR ALL OF THE INDEMNITEES AND WARRANTECH ARE
BOTH INVOLVED IN SUCH CLAIM, AND SUCH CLAIM IS NOT A JURY TRIAL, THE ABOVE
WAIVER OF JURY TRIAL SHALL NOT PRECLUDE THEM FROM PARTICIPATING IN SUCH JURY
TRIAL.

        6.      None of the terms or provisions of this Agreement may be
amended, supplemented or otherwise modified except by a written instrument
executed by each of the Indemnitees and Warrantech.

        7.      This Agreement shall be construed without regard to the
principal that a contract should be construed against the draftsperson, and the
parties to this Agreement shall be deemed equal draftspersons of this Agreement.

        8.      This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. Facsimile signatures on the signature
pages of this Agreement shall be effective and bind the parties as if such
signatures were original signatures.

        9.      The Indemnitees may not directly assign or transfer in any
manner any of their respective rights under this Agreement and are the only
persons and entities entitled to any rights or benefits under or in connection
with this Agreement.

                            (Signature Page Follows)

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<PAGE>

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of this ___ day of ____________ 2004.

        Warrantech Corporation

        By:
           -------------------------------------
           Name:
           Title:

        Butler Financial Solutions LLC

        By:
           -------------------------------------
           Name:  Harris G. Miller
           Title: President

        Reliance Warranty Company

        By:
           -------------------------------------
           Name:  Harris G. Miller
           Title: President

        SPG Financial Corp.

        By:
           -------------------------------------
           Name:  Paul Graff
           Title: President

        -------------------------------------
        Harris Miller

        -------------------------------------
        Karen Parker

        -------------------------------------
        Paula Graff

                                       3PROMISSORY NOTE

[SATISFACTION: The debt evidenced by this Note has been
satisfied in full as of __________________, ______
Signed: __________________________________________]

                                                     Mooresville, North Carolina
                                                                    $ 428,105.90
                                                               December 30, 2004

         FOR VALUE RECEIVED the undersigned, jointly and severally, promise to
pay to INTERFUND MORTGAGE CORP., a Florida corporation, or order, the principal
sum of FOUR HUNDRED TWENTY-EIGHT THOUSAND ONE HUNDRED FIVE AND 90/100 DOLLARS
($428,105.90), with interest from the date hereof, at the rate of ten per cent
(10%) per annum on the unpaid balance until paid or until default, both
principal and interest payable in lawful money of the United States of America,
at the office of Interfund Mortgage Corp., 7100 West Camino Real Blvd., Suite
402, Boca Raton, Florida 33433, or at such place as the legal holder hereof may
designate in writing. It is understood and agreed that additional amounts may be
advanced by the holder hereof as provided in the instruments, if any, securing
this Note and such advances will be added to the principal of this Note and will
accrue interest at the above specified rate of interest from the date of advance
until paid. The principal and interest shall be due and payable as follows:

         If not sooner paid, the entire indebtedness (both principal and accrued
         interest) shall be due and payable in full on December 30, 2006. In the
         event the maker makes any prepayment, in whole or in part, of this
         Note, such prepayment must include and be accompanied by a payment of
         the interest that has accrued through the date of such prepayment and
         that would have accrued through December 30, 2006, applicable to the
         amount of principal being prepaid, and it is specifically understood
         and agreed that the holder's obligation to accept, and the maker's
         right to make, any prepayment under this Note is expressly conditioned
         upon the payment of all of said interest with the prepayment of any
         principal.

         This Note may not be prepaid in full or in part at any time unless
accompanied by the interest payment applicable thereto, as specified above.

         If payable in installments, each such installment shall, unless
otherwise provided, be applied first to payment of interest then accrued and due
on the unpaid principal balance, with the remainder applied to the unpaid
principal. If any payment received by the holder under this Note is rescinded,
avoided or for any reason returned by the holder because of any adverse claim or
threatened action, the returned payment shall remain payable as an obligation of
all persons liable under this Note as though such payment had not been made.
<PAGE>

         Interest and fees, if any, shall be computed on the basis of a 360-day
year for the actual number of days in the applicable period, which means taking
the stated (nominal) rate for a year's period and then dividing said rate by 360
to determine the daily periodic rate to be applied for each day in the
applicable period. The application of this method of interest computation
produces an annualized effective rate that exceeds the nominal rate. If at any
time the effective interest rate under this Note would, but for this paragraph,
exceed the maximum lawful rate, the effective interest rate under this Note
shall be the maximum lawful rate, and any amount received by the holder in
excess of such rate shall be applied to principal and then to fees and expenses,
or, if no such amounts are owing, returned to the maker.

         The undersigned promises to pay to the holder, or order, on demand a
late fee in the amount of four percent (4%) of any payment that is past due for
fifteen (15) or more days.

         In the event of

         (a)      default in payment of any installment of principal or interest
         hereof as the same becomes due and such default is not cured within
         five (5) days from the due date, or

         (b)      default under the terms of any instrument securing this Note,
         and such default is not cured within fifteen (15) days after written
         notice to maker, or

         (c)      default by the undersigned under the terms of the Builder
         Purchase and Sale Agreement between the undersigned as "Builder" and
         The Farms, LLC as "Seller" dated as of December 17, 2004 (which is
         incorporated herein by reference), relating to the sale and purchase of
         certain real property as described in the Deed of Trust given as
         security for this Note, specifically including, without limitation, the
         failure of D. S. Rushing, Inc. to be admitted to, and remain at all
         times in good standing under, the "Featured Builder Program at the
         Farms", as defined and described in said Builder Purchase and Sale
         Agreement, or

         (d)      the failure of the undersigned to have commenced construction
         (which shall mean having obtained approval of final plans by any
         applicable architectural review committee, having obtained a building
         permit, and having completed the footings for the residential dwelling)
         of at least four (4) residential dwellings by December 30, 2005, and of
         (3) additional residential dwellings (for a total of seven (7)) by June
         30, 2006, on the seven (7) residential lots acquired by the undersigned
         under the Builder Purchase and Sale Agreement described above,

then in any such event the holder may without further notice, declare the
remainder of the principal sum, together with all interest accrued thereon and,
the additional interest or prepayment premium, if any, at once due and payable.
Failure to exercise this option shall not constitute a waiver of the right to
exercise the same at any other time. The unpaid principal of this Note and any
part thereof, accrued interest and all other sums due under this Note and the
Deed of Trust, if any, shall bear interest at the rate of eighteen per cent
(18%) per annum after default until paid.

         All parties to this Note, including maker and any sureties, endorsers,
or guarantors hereby waive protest, presentment, notice of dishonor, and notice
of acceleration of maturity and agree to continue to remain bound for the
payment of principal, interest and all other sums due under this Note and the
Deed of Trust notwithstanding any change or changes by way of release,
surrender, exchange, modification or substitution of any security for this Note
or by way of any extension or extensions of time for the payment of principal
and interest; and all such parties waive all and every kind of notice of such

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<PAGE>

change or changes and agree that the same may be made without notice or consent
of any of them.

         Upon default the holder of this Note may employ an attorney to enforce
the holder's rights and remedies and the maker, principal, surety, guarantor and
endorsers of this Note hereby agree to pay to the holder reasonable attorneys
fees not exceeding a sum equal to fifteen percent (15%) of the outstanding
balance owing on said Note, plus all other reasonable expenses incurred by the
holder in exercising any of the holder's rights and remedies upon default. The
rights and remedies of the holder as provided in this Note and any instrument
securing this Note shall be cumulative and may be pursued singly, successively,
or together against the property described in the Deed of Trust or any other
funds, property or security held by the holder for payment or security, in the
sole discretion of the holder. The failure to exercise any such right or remedy
shall not be a waiver or release of such rights or remedies or the right to
exercise any of them at another time.

         This Note is to be governed and construed in accordance with the laws
of the State of North Carolina.

         This Note is given to evidence a loan made for the acquisition of real
property, and is secured by a deed of trust of even date which is a first lien
upon the property therein described.

         Any notices to the undersigned shall be sufficiently given if in
writing and mailed or delivered to the undersigned's address shown below or such
other address as provided hereunder, and to the holder if in writing and mailed
or delivered to the holder at the address for payments as provided herein above,
or such other address as the holder may specify in writing from time to time. If
the undersigned changes its address at any time, the undersigned shall promptly
give written notice of said change of address by registered or certified mail,
return receipt requested, all charges prepaid.

         The undersigned shall promptly pay all documentary, intangible
recordation and/or similar taxes on this transaction whether assessed at closing
or arising from time to time.

         IN TESTIMONY WHEREOF, each corporate maker has caused this instrument
to be executed in its corporate name by its President, and its corporate seal to
be hereto affixed, all by order of its Board of Directors first duly given, the
day and year first above written.

                                    D. S. RUSHING, INC.,
                                    a North Carolina corporation

                                    By: /s/ DAVID S. RUSHING
                                        ----------------------------------------
                                        David S. Rushing, President

                                                                (Corporate Seal)

                                    Address for notices: 221 Beracah Road,
                                                         Mooresville, NC  28115

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