Document:

OPX 8K 05-07-07 EX 10.1

     

    Exhibit
      10.1

     

     

    Execution
      Copy

     

     

    

     

     

    

     

     

    

     

     

    ASSET
      PURCHASE AGREEMENT

     

    by
      and among

     

     

    OPTEUM
      FINANCIAL SERVICES, LLC,

     

     

    OPTEUM
      INC.,

     

     

    and

     

     

    PROSPECT
      MORTGAGE COMPANY, LLC,

     

     

    Dated
      May
      7, 2007

     

    

     

    ASSET
      PURCHASE AGREEMENT

     

    

     

    This
      Asset Purchase Agreement is made and entered into on May 7, 2007, by and among
      Prospect Mortgage Company, LLC, a Delaware limited liability company (the
“Purchaser”),
      Opteum Financial Services, LLC, a Delaware limited liability company (the
“Seller”),
      and,
      solely for purposes of Sections
      6.5,
      6.6,
      6.7,
      6.8, 6.9
      and
6.17
      hereof,
      Opteum Inc., a Maryland corporation (the “Unitholder”).
      

    

    WHEREAS,
      the Seller provides retail mortgage origination services (the “Business”);
      

    

    WHEREAS,
      the Unitholder is the owner of all of the outstanding membership interests
      of
      the Seller; and

    

    WHEREAS,
      the Purchaser desires to purchase certain of the assets of the Seller related
      to
      the Business and the Seller desires to sell such assets to the Purchaser on
      the
      terms and conditions set forth below.

    

    NOW,
      THEREFORE, in consideration of the foregoing, and of the mutual representations,
      covenants and agreements set forth in this Agreement, and other consideration,
      the receipt and sufficiency of which are hereby acknowledged, the parties agree
      as follows:

     

    ARTICLE
      I  

     

    

     

    DEFINITIONS
      AND INTERPRETATION

     

    Section
      1.1  Definitions.
      For all
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context clearly requires otherwise, certain capitalized terms used in this
      Agreement have the meanings assigned to them in Exhibit 1.

     

    Section
      1.2  Interpretation.

     

    (a)  When
      a
      reference is made in this Agreement to a section or article, such reference
      shall be to a section or article of this Agreement unless otherwise clearly
      indicated to the contrary.

     

    (b)  Whenever
      the words “include”, “includes” or “including” are used in this Agreement they
      shall be deemed to be followed by the words “without limitation.”

     

    (c)  The
      words
“hereof”, “herein” and “herewith” and words of similar import shall, unless
      otherwise stated, be construed to refer to this Agreement as a whole and not
      to
      any particular provision of this Agreement, and article, section, paragraph,
      exhibit and schedule references are to the articles, sections, paragraphs,
      exhibits and schedules of this Agreement unless otherwise
      specified.

     

    (d)  The
      meaning assigned to each term defined herein shall be equally applicable to
      both
      the singular and the plural forms of such term, and words denoting any gender
      shall include all genders. Where a word or phrase is defined herein, each of
      its
      other grammatical forms shall have a corresponding meaning.

     

    (e)  A
      reference to any party to this Agreement or any other agreement or document
      shall include such party’s successors and permitted assigns.

     

    (f)  A
      reference to any legislation or to any provision of any legislation shall
      include any amendment to, and any modification or re-enactment thereof, any
      legislative provision substituted therefore and all regulations and statutory
      instruments issued thereunder or pursuant thereto.

     

    ARTICLE
      II   

     

    

     

    PURCHASE
      AND SALE

     

    Section
      2.1  Sale
      and Transfer of Assets.
      The
      Seller hereby agrees to sell, transfer, convey, assign and deliver to the
      Purchaser, and the Purchaser hereby agrees to purchase and take possession
      of
      all right, title and interest in and to the following personal, tangible,
      intangible and other properties, rights and assets, used in the operation of
      or
      otherwise related to the Business, and specifically excluding the Excluded
      Assets (the “Assets”):

     

    (a)  all Equipment,
      Fixtures and Furniture used in the conduct of the Business or otherwise related
      to the Business; 

     

    (b)  all
      Seller Intellectual Property;

     

    (c)  all
      Computer Software used in the operation of or otherwise in connection with
      the
      Business;

     

    (d)  all
      Books
      and Records used in the operation of or otherwise in connection with the
      Business; 

     

    (e)  all
      telephone numbers, domain names and email addresses used in the operation of
      or
      otherwise in connection with the Business; 

     

    (f)  all
      Pipeline Loans and items related thereto;

     

    (g)  all
      credits, prepaid expenses (excluding Tax refunds), advance payments and
      deposits; including, without limitation, customer deposits and customer advances
      in connection with the Business, other than credits, prepaid expenses (excluding
      Tax refunds), advance payments and deposits related to the real property lease
      for each of the branch offices located at West 115 Century
      Road, Paramus, New Jersey and 3625 Cumberland Boulevard, Overton,
      Georgia;

     

    (h)  all
      rights in and to any restrictive covenants and other obligations of present
      and
      former employees, independent contractors, consultants, suppliers and customers
      to Seller related to the Business in connection with the Business, but only
      to
      the extent assignable;

     

    (i)  all
      leases of real and personal property which are used currently and as of the
      Closing in providing retail mortgage loan origination services, including the
      Leases;

     

    (j)  all
      contracts and agreements relating to the operation of or otherwise in connection
      with the Business, including the Contracts;

     

    (k)  all
      other
      intangible assets of the Seller used in or otherwise connected to the Business
      including, without limitation, goodwill and going concern value;
      and

     

    (l)  all
      claims and rights against third parties related to items (a)-(j) above,
      including, without limitation, insurance claims, setoffs, refunds (excluding
      prepaid Taxes), credits, causes of action and rights of recovery, but in each
      case only to the extent arising after the Closing.

     

    Section
      2.2  Excluded
      Assets.
      Nothing
      herein contained shall be deemed to sell, transfer, assign or convey the
      Excluded Assets to Purchaser, and Seller shall retain all right, title and
      interest to, in and under the Excluded Assets. “Excluded Assets” shall mean each
      of the following assets:

     

    (a)  all
      assets and contracts set forth on Exhibit
      2.2
      hereto;

     

    (b)  Mortgage
      Loans held for sale, held in securitization trusts or held for
      investment;

     

    (c)  Mortgage
      Loans repurchased by Seller from any investor;

     

    (d)  cash,
      cash equivalents and restricted cash except for those items described in
Section
      2.1(g);

     

    (e)  investment
      securities available for sale;

     

    (f)  Tax
      assets, claims for Tax refunds, Tax Returns and Tax workpapers;

     

    (g)  all
      interest rate swaps, caps, floors, collars and option agreements or other
      interest rate risk management arrangements other than as relate to the Pipeline
      Loans;

     

    (h)  all
      rights in connection with, and assets of, any Employee Benefit Plan, except
      to
      the extent otherwise provided in Article
      VIII
      hereof;

     

    (i)  the
      domain name www.opteum.com;

     

    (j)  all
      credits, prepaid expenses (excluding Tax refunds), advance payments and deposits
      related to the real property leases for each of the branch offices located
      at
      (i) West 115 Century
      Road, Paramus, New Jersey, and (ii) 1 Overton Park, 3625 Cumberland Boulevard,
      Atlanta, Georgia;

     

    (k)  all
      minute books, organizational documents, stock registers and such other books
      and
      records of Seller as pertain to ownership, organization or existence of Seller
      and duplicate copies of such records as are necessary to enable Seller to
      prepare or file Tax Returns;

     

    (l)  all
      accounting books and records of Unitholder and Seller;

     

    (m)  all
      equity ownership interests owned by Seller or any of its direct or indirect
      Subsidiaries; and

     

    (n)  all
      escrow deposits relating to Seller’s Mortgage Loan inventory.

     

    Section
      2.3  Assumption
      of Liabilities.
      On the
      terms and subject to the conditions set forth in this Agreement, at the Closing,
      Purchaser shall (or shall cause its designated Affiliate or Affiliates to)
      assume, effective as of the Closing, the following liabilities of Seller
      (collectively, the “Assumed Liabilities”):

     

    (a)  all
      obligations of Seller under the Pipeline Loans;

     

    (b)  all
      Liabilities of Seller under the Contracts and Leases and under such other
      contracts and leases that are deemed Assets for purposes of this Agreement
      that
      arise out of or relate to the period after the Closing;

     

    (c)  all
      Liabilities and obligations listed on Exhibit
      2.3(c)
      hereto;

     

    (d)  all
      obligations arising after the Closing with respect to the Transferred Employees,
      including any severance obligations with respect to Transferred
      Employees.

     

    (e)  all
      Liabilities that relate directly to the Assets and that arise out of or relate
      to the conduct of the Business by Purchaser after the Closing.

     

    Section
      2.4  The
      Purchase Price.
      The
      consideration for the Assets shall be (i) the payment by the Purchaser to the
      Seller of FIVE MILLION DOLLARS ($5,000,000.00) (the “Purchase Price”) and (ii)
      the assumption by the Purchaser of the Assumed Liabilities. The Purchaser shall
      pay the Seller the Purchase Price by wire transfer to the Seller on the Closing
      Date. Notwithstanding the foregoing, in the event employees of Seller employed
      in a sales function (including loan officers and production managers)
      representing the threshold percentage set forth in Exhibit 2.4 shall not have
      agreed to accept employment with the Purchaser and become Transferred Employees
      as of the Closing Date, the Purchase Price shall be reduced based on the formula
      set forth in Exhibit 2.4. 

     

    Section
      2.5  Allocation
      of the Purchase Price. Prior to the Closing, the parties shall mutually agree
      upon the allocation of the Purchase Price and Assumed Liabilities (to the extent
      included in the amount realized for federal income tax purposes) among the
      Assets in accordance with Code Section 1060 and the Treasury Regulations
      thereunder (and any similar provision of state, local or foreign Law, as
      appropriate). And all income Tax Returns and reports (including IRS Form 8594)
      filed by the Purchaser and the Seller shall be prepared consistently with such
      allocation; provided, that (i) the Purchaser’s reported cost for the Assets may
      be greater than the amount allocated hereunder to reflect the Purchaser’s
      acquisition costs not included in the total amount so allocated, and (ii) the
      Seller’s reported amount realized may be less than the amount allocated
      hereunder to reflect the Seller’s costs that reduce the amount realized. For
      purposes of this Section 2.5, the Assets include the restrictive covenants
      as
      set forth in Section 6.7.

     

    Section
      2.6  Nonassignable
      Contracts. To the extent that the assignment hereunder by the Seller to the
      Purchaser of any Contract is not permitted or is not permitted without the
      consent of any other party to such Contract, this Agreement shall not be deemed
      to constitute an assignment of any such Contract if such consent is not given
      or
      if such assignment otherwise would constitute a breach of, or cause a loss
      of
      contractual benefits under, any such Contract, and the Purchaser shall assume
      no
      obligations or liabilities under any such Contract. The Seller shall advise
      the
      Purchaser promptly in writing with respect to any Contract which the Seller
      knows or has substantial reason to believe will not be able to be assigned
      to
      the Purchaser hereunder. Without in any way limiting the Seller’s relevant
      representations and warranties or its obligation to obtain all consents and
      waivers necessary for the sale, transfer, assignment and delivery of the
      Contracts and the Assets to the Purchaser hereunder, if any such consent is
      not
      obtained or if such assignment is not permitted irrespective of consent and
      the
      Closing hereunder is consummated, the Seller shall cooperate with the Purchaser
      following the Closing Date in any reasonable arrangement designed to provide
      the
      Purchaser with the rights and benefits (subject to the obligations) under any
      such Contract, including enforcement for the benefit of the Purchaser of any
      and
      all rights of the Seller against any other party arising out of any breach
      or
      cancellation of any such Contract by such other party and, if requested by
      the
      Purchaser, acting as an agent on behalf of the Purchaser or as the Purchaser
      shall otherwise reasonably require, all at the Seller’s expense.

     

    ARTICLE
      III  

     

    

     

    THE
      CLOSING

     

    Section
      3.1  The
      Closing.
      The
      sale and transfer of the Assets by the Seller to the Purchaser shall take place
      at 10:00 a.m. central time on May 31, 2007 at the offices of Horwood Marcus
      & Berk Chartered, 180 North LaSalle Street, Suite 3700, Chicago, Illinois
      60601, unless another date or place is agreed to in writing by each of the
      parties hereto (the “Closing Date”). 

     

    ARTICLE
      IV  

     

    

     

    REPRESENTATIONS
      AND WARRANTIES OF THE SELLER AND THE UNITHOLDER

     

    Except
      as
      specifically set forth in the Disclosure Schedule or the Exhibits hereto, the
      Seller represents and warrants to the Purchaser that all of the statements
      contained in this Article IV
      are true
      and correct as of the date of this Agreement (or, if made as of a different
      specified date, as of such date). Each exception set forth in the Disclosure
      Schedule or any Exhibit and each other response to this Agreement set forth
      in
      the Disclosure Schedule or any Exhibit is identified by reference to, or has
      been grouped under a heading referring to, a specific individual section of
      this
      Agreement;
      provided, however, that disclosure of any item in any section or subsection
      of
      the Disclosure Schedule or any Exhibit that is not material shall be deemed
      disclosure with respect to any other section or subsection to which the
      relevance of such item is reasonably apparent. As used in this Article IV,
      the
      Seller shall refer to the Seller.

     

    Section
      4.1  Organization;
      Qualification.
      The
      Seller is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the State of Delaware and has the full power
      and
      authority to own, lease and operate its properties and to carry on the Business
      as now conducted. 

     

    Section
      4.2  Authorization;
      Validity of Agreement. The Seller and the Unitholder have full power and
      authority to execute and deliver this Agreement, and to consummate the
      Transaction. The execution, delivery and performance by the Seller and the
      Unitholder of this Agreement and the consummation by the Seller and the
      Unitholder of the Transaction have been duly authorized by all requisite
      corporate action on the part of the Seller, the members of the Seller and the
      Unitholder, and no other action on the part of the Seller or the Unitholder
      is
      necessary to authorize the execution and delivery by the Seller or the
      Unitholder of this Agreement or the consummation by it of the Transaction.
      The
      Unitholder owns 100% of the Class A voting limited liability company interests
      in the Seller and no other member of the Seller holds any voting interests
      in
      the Seller. This Agreement has been duly executed and delivered by the Seller
      and the Unitholder and, assuming due and valid authorization, execution and
      delivery thereof by the Purchaser, this Agreement is a legal, valid and binding
      obligation of the Seller and the Unitholder enforceable against the Seller
      and
      the Unitholder in accordance with its terms. 

     

    Section
      4.3  Consents
      and Approvals; No Violations. None of the execution, delivery or performance
      of
      this Agreement by the Seller, the consummation by the Seller of the Transaction
      or compliance by the Seller with any of the provisions hereof will
      (i) conflict with or result in any breach of any provision of the
      certificate of formation, limited liability company agreement or similar
      organizational documents of the Seller, (ii) be in violation of any agreement
      to
      which the Seller is a party or by which the Seller is bound; (iii) require
      any filing with, authorization, consent or approval of, any Governmental Entity
      or other Person (including consents from parties to Contracts and Leases to
      which the Seller is a party); (iv)
      result in a violation or breach of, or constitute (with or without due notice
      or
      the passage of time or both) a default (or give rise to any right of
      termination, amendment, cancellation or acceleration) under, any of the terms,
      conditions or provisions of any Contract or Lease; (v) result in the imposition
      of a Lien on any of the Assets; or (vi) violate any order, writ,
      injunction, decree, statute, rule or regulation applicable to any of the
      Seller’s properties or assets, except with respect to clauses (ii)-(vi) above,
      for such breaches, defaults, violations and Liens that would not reasonably
      be
      expected to have, individually or in the aggregate, a Material Adverse
      Effect.

     

    Section
      4.4  Financial
      Statements. True and complete copies of the Financial Statements are included
      in
      Exhibit 4.4. The Financial Statements have been prepared from, are in accordance
      with and accurately reflect, the books and records of the Seller, have been
      prepared in accordance with GAAP applied on a consistent basis during the
      periods involved (except as may be stated in the notes thereto), and fairly
      present in all material respects the consolidated financial position and the
      consolidated results of operations and cash flows (and changes in financial
      position, if any) of the Seller as of the times and for the periods referred
      to
      therein (subject to normally recurring year-end audit adjustments which are
      not
      material either individually or in the aggregate). The Seller maintains all
      of
      its Financial Statements in accordance with all applicable laws, rules and
      regulations of all federal, state, local governments and agencies thereof that
      affect the Business or Assets of the Seller. None of the Financial Statements
      contains any items of a special or nonrecurring nature, except as expressly
      stated therein, and such Financial Statements do not reflect any write-up or
      revaluation increasing the book value of any asset of the Company.

     

    Section
      4.5  Title
      to
      Properties; Liens. The Seller has good, valid and marketable title to the Assets
      (tangible and intangible) free and clear of all Liens, other than Permitted
      Liens or Liens that are not material. The Assets include all such properties
      and
      other assets necessary to permit the Seller to conduct its Business in all
      respects in substantially the same manner as such Business has been conducted
      prior to the date hereof, other than the Excluded Assets. The Assets shall
      include all assets necessary for or related to the conduct of the Business,
      other than the Excluded Assets, and all Assets acquired since March 31, 2007
      in
      the ordinary course of the Business and shall exclude (i) all Assets sold or
      otherwise disposed of since March 31, 2007 in the ordinary course of the
      Business and (ii) the Excluded Assets.

     

    Section
      4.6  Personal
      Property. All of the Assets that are tangible personal property are in good
      operating condition and repair, ordinary wear and tear excepted, and are useable
      in the ordinary course of business. None of the Assets that are tangible
      personal property require any material repair or replacement, except for
      maintenance in the ordinary course of business. No material portion of the
      Assets that are tangible personal property are located at locations other than
      locations that are either leased or owned by the Seller.

     

    Section
      4.7  Leases.
      A
      true and complete copy of each Lease has been provided to the Purchaser. The
      leasehold estate created by each Lease is free and clear of all Liens. There
      are
      no existing material defaults by the Seller under any of the Leases. No event
      has occurred that (whether with or without notice, lapse of time or the
      happening or occurrence of any other event) would constitute a material default
      by the Seller under any Lease. The Seller has not received notice, nor does
      Seller have any knowledge that any lessor under any Lease will not consent
      (where such consent is necessary) to the consummation of the Transaction without
      requiring any modification of the rights or obligations of the lessee
      thereunder.

     

    Section
      4.8  Environmental
      Matters. To the Seller’s knowledge, the Seller is in compliance with all
      applicable Environmental Laws. The Seller has not has received any written
      communication, whether from a Governmental Entity, citizens group, employee
      or
      otherwise, that alleges that the Seller is not in compliance with any
      Environmental Laws. There is no Environmental Claim by any Person that is
      pending or, to the Seller’s knowledge, threatened against the
      Seller.

     

    Section
      4.9  Contracts.

     

    (a)  Exhibit
      4.9
      sets
      forth all of the material contracts and other agreements (whether written or
      oral) (i) to which the Seller is a party that relate to the Business, and by
      or
      to which the Seller is bound, or by or to which any of the Assets are bound
      and
      (ii) which are necessary or are related to the operation of the Business
      (collectively, the “Contracts”).
      True
      and complete copies of all of the Contracts have been provided to the Purchaser.
      For purposes of this Agreement, “material contracts and other agreements” shall
      only include contracts and agreements with respect to which the aggregate
      liabilities or obligations of either party thereto exceed $50,000.

     

    (b)  Each
      Contract is in full force and effect, has not been materially modified or
      amended except to the extent such modification or amendment has been disclosed
      to the Purchaser, and constitutes the legal, valid and binding obligation of
      the
      Seller in accordance with the terms of such agreement. To the knowledge of
      the
      Seller, each Contract is a legal, valid and binding obligation of the other
      party to the Contract. In the past twelve (12) months, the Seller has not given
      nor received a written notice of breach or default under or had any dispute
      with
      respect to any Contract which is pending or which has been resolved with
      payments in excess of $50,000.

     

    Section
      4.10  Litigation.
      The
      Seller is not a party to any material action, suit or Proceeding related to
      the
      Assets or the Business before any court or governmental or other regulatory
      or
      administrative agency or commission. The Seller has not received notice of
      and
      has no knowledge of any action, suit, inquiry, Proceeding or investigation
      by or
      before any court or governmental or other regulatory or administrative agency
      or
      commission pending or threatened against or involving the Seller which questions
      or challenges the validity of this Agreement or any action taken or to be taken
      by the Seller pursuant to this Agreement or in connection with the Transaction.
      The Seller is not subject to any judgment, order or decree which may reasonably
      be expected to have an adverse effect on the Assets.

     

    Section
      4.11  Compliance
      with Laws. The
      Seller has complied in a timely manner with all laws, rules and regulations,
      ordinances, judgments, decrees, orders, writs and injunctions of all United
      States federal, state, local, foreign governments and agencies thereof that
      affect the Assets, except
      for any such failure to comply that would not have, or be reasonably likely
      to
      have, individually or in the aggregate, a Material Adverse Effect;
      and no
      written notice, charge, claim, action or assertion has been received by the
      Seller or, to the Seller’s knowledge, has been filed, commenced or threatened
      against the Seller alleging any material violation of any of the
      foregoing.

     

    Section
      4.12  Tax
      Matters.

     

    (a)  The
      Seller has timely filed all material Tax Returns required to be filed by the
      Seller. All such Tax Returns are true, correct, and complete in all material
      respects. With respect to all material Taxes imposed on the Seller or for which
      the Seller is or could be liable, whether to taxing authorities or to other
      Persons, with respect to all taxable periods or portions of periods up to and
      including the Closing (including, but not limited to, taxable periods or
      portions of periods ending on or before the Closing), all applicable laws and
      agreements have been complied with in all material respects, and all material
      amounts of Taxes required to be paid by the Seller to taxing authorities or
      others on or before the Closing have been paid. The Seller has fully accrued
      for
      or reserved against any and all material amounts of Taxes of the Seller or
      for
      which the Seller is or could be liable relating to periods up to and including
      the Closing.

     

    (b)  The
      Seller has not been delinquent in the payment of any material amounts of Tax
      nor
      is there any material Tax deficiency outstanding, proposed, assessed,
      threatened, or expected to be commenced by any Tax authority against the Seller.
      The Seller has not executed or requested any waiver of any statute of
      limitations on or extending the period for the assessment or collection of
      any
      Tax.

     

    (c)  The
      Seller has no liability for any material amounts of unpaid Taxes which have
      not
      been accrued for or reserved on the Financial Statements, whether asserted
      or
      unasserted, contingent or otherwise. There are no Liens for Taxes on the Assets
      other than Taxes not yet due and payable.

     

    Section
      4.13  Intellectual
      Property.

     

    (a)  Exhibit
      4.13
      sets
      forth a true and complete list of all of the domain names, Tradenames,
      Trademarks and Patents owned or licensed by the Seller and that are used in
      or
      relate to the Business or the Assets.

     

    (b)  The
      Seller owns and possesses or has the right to use pursuant to a valid and
      enforceable written license, sublicense, agreement, or permission all Seller
      Intellectual Property and Computer Software used by it or held for use by it
      in
      connection with its Business, free and clear of all Liens other than Permitted
      Liens.

     

    (c)  All
      Seller Intellectual Property registrations and applications owned by the Seller
      and used in the Business as currently conducted (i) are valid, subsisting,
      in proper form and enforceable, and have been duly maintained, including the
      submission of all necessary filings and fees in accordance with the legal and
      administrative requirements of the appropriate jurisdictions and (ii) have
      not lapsed, expired or been abandoned, and no patent, registration or
      application therefore is the subject of any opposition, interference,
      cancellation proceeding or other legal or governmental proceeding before any
      Governmental Entity in any jurisdiction.

     

    (d)  There
      are
      no conflicts with or infringements of any Seller Intellectual Property by any
      third party’s Intellectual Property and the conduct of the Business as currently
      conducted does not conflict with or infringe in any way on any proprietary
      right
      of any third party. There is no claim, suit, action or proceeding pending or
      threatened against the Seller (i) alleging any such conflict or
      infringement of Seller Intellectual Property with any third party’s proprietary
      rights or (ii) challenging the ownership, use, validity or enforceability
      of the Seller Intellectual Property.

     

    (e)  The
      Computer Software used by the Seller in the operation of the Business or
      otherwise in connection with the Business was either (i) developed by
      employees of the Seller within the scope of their employment,
      (ii) developed on behalf of the Seller by a third party, and all ownership
      rights therein are assignable or otherwise transferable to the Purchaser or
      (iii) licensed or acquired from a third party pursuant to a written
      license, assignment, or other contract that is in full force and effect and
      of
      which the Seller is not in breach and which is fully assignable to the
      Purchaser.

     

    (f)  All
      consents, filings, and authorizations by or with Governmental Entities or third
      parties necessary with respect to the consummation of the Transaction, as they
      may affect the Seller Intellectual Property, have been obtained.

     

    (g)  The
      Seller has not entered into any consent, indemnification, forbearance to sue,
      settlement agreement or cross-licensing arrangement with any Person relating
      to
      the Seller Intellectual Property or any Intellectual Property licensed by the
      Seller, or the Intellectual Property of any third party.

     

    (h)  The
      execution and delivery of this Agreement or the performance of its obligations
      under this Agreement will not result in the breach of any license, sublicense
      or
      other agreement relating to the Seller Intellectual Property.

     

    Section
      4.14  Employees,
      Officers and Managers.
      

     

    (a)  Exhibit
      4.14 contains
      a complete and correct list of individuals employed by the Seller in connection
      with the Business with the following information: (i) the names, current
      compensation rates and other compensation and amount of accrued sick time and
      vacation time of all individuals presently employed by the Seller, (ii) the
      names and total annual compensation for all independent contractors who render
      services on a regular or seasonal basis to the Seller, and (iii) the names
      and
      titles of the officers and managers of the Seller. No person listed thereon
      has
      received any bonus or increase in compensation, and there has been no “general
      increase” in the compensation or rate of compensation payable to any such
      employees, that is not reflected on Exhibit
      4.14,
      nor has
      the Seller made any promise to the employees listed on Exhibit
      4.14,
      orally
      or in writing, of any bonus or increase in compensation, whether or not legally
      binding, that is not reflected on Exhibit
      4.14.
      No
      employee has threatened not to continue his or her employment, nor has any
      independent contractor threatened not to enter into an engagement with the
      Purchaser, due to the Transaction or otherwise. 

     

    (b)  The
      Seller is not a party to or bound by any collective bargaining or similar
      agreement with any labor organization or employee association applicable to
      employees of the Seller engaged in the Business. No labor union has been
      certified by the National Labor Relations Board as bargaining agent for any
      of
      the employees of the Seller engaged in the Business; no notice has been received
      by the Seller from any labor union stating that it has been designated as the
      bargaining agent for any of said employees; and no petition has been filed
      by
      any labor union requesting an election to determine whether or not it is the
      exclusive bargaining agent for any of said employees. To the Seller’s knowledge,
      none of the employees of the Seller engaged in the Business are represented
      by
      any labor organization and there have been no union organizing activities among
      the employees of the Seller engaged in the Business within the past five (5)
      years.

     

    Section
      4.15  Pipeline
      Loans. Each
      Pipeline Loan was underwritten and funded in accordance with applicable
      underwriting standards of the Seller in effect at the time the Pipeline Loan
      was
      originated, and each such Pipeline Loan is in conformity with the applicable
      underwriting standards. To the Seller’s knowledge, no fraud occurred on the part
      of any Person in connection with any Pipeline Loan that could adversely affect
      the Purchaser, or result in the Purchaser incurring a Loss. With regard to
      interest rate locks on all Pipeline Loans, (a) all Pipeline Loans with a locked
      interest rate were locked in accordance with the Seller’s written loan lock
      policies; (b) all Pipeline Loans with a locked interest rate are included on
      locked loan pipeline or loan production reports; and (c) all extensions of
      time
      for the duration of any loan locks on any Pipeline Loan with a locked interest
      rate are recorded on the books, records, mortgage lending software systems,
      and
      reports of the Seller.

     

    Section
      4.16  Brokers
      or Finders. No agent, broker, investment banker, financial advisor or other
      firm
      or Person is or will be entitled to any brokers’ or finder’s fee or any other
      commission or similar fee in connection with any of the
      Transaction.

     

    ARTICLE
      V  

     

    

     

    REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER

     

    The
      Purchaser represents and warrants to the Seller that all of the statements
      contained in this Article V
      are true
      and correct as of the date of this Agreement (or, if made as of a different
      specified date, as of such date).

     

    Section
      5.1  Organization.
      The
      Purchaser is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of Delaware and
      has
      all requisite limited liability company or other power and authority and all
      necessary governmental approvals to own, lease and operate its properties and
      to
      carry on its business as now being conducted. The Purchaser is duly qualified
      or
      licensed to do business as a foreign limited liability company and is in good
      standing as a foreign limited liability company in each jurisdiction in which
      either the ownership or use by the Purchaser of the Purchaser’s assets or the
      operation by the Purchaser of the Purchaser’s business requires such licensing,
      qualification or good standing except where the failure to have such
      qualifications or licenses will not have a Purchaser Material Adverse
      Effect.

     

    Section
      5.2  Authorization;
      Validity of Agreement. The Purchaser has full limited liability company power
      and authority to execute and deliver this Agreement and to consummate the
      Transaction and to perform its obligations hereunder. The execution, delivery
      and performance by the Purchaser of this Agreement and the consummation of
      the
      Transaction have been duly authorized by the Purchaser, and no other action
      on
      the part of the Purchaser is necessary to authorize the execution and delivery
      by the Purchaser of this Agreement or the consummation of the Transaction.
      No
      vote of, or consent by, the holders of any class or series of stock or voting
      debt issued by the Purchaser is necessary to authorize the execution and
      delivery by the Purchaser of this Agreement or the consummation by it of the
      Transaction. This Agreement has been duly executed and delivered by the
      Purchaser, and, assuming due and valid authorization, execution and delivery
      hereof by the Unitholder and the Seller, is a legal, valid and binding
      obligation of the Purchaser, enforceable against the Purchaser in accordance
      with its terms.

     

    Section
      5.3  Consents
      and Approvals; No Violations. None of the execution, delivery or performance
      of
      this Agreement by the Purchaser, the consummation by the Purchaser of the
      Transaction or compliance by the Purchaser with any of the provisions hereof
      will (i) conflict with or result in any breach of any provision of the
      certificate of formation, limited liability company agreement or similar
      organizational documents of the Purchaser, (ii) be in violation of any agreement
      to which the Purchaser is a party or by which the Purchaser is bound; (iii)
      other than license applications to be filed by the Purchaser or its Assignee
      with applicable Governmental Entities, including but not limited to state
      mortgage licensing authorities, with respect to each of the Seller’s offices
      that Purchaser is acquiring through its assumption of the Leases and purchase
      of
      the Assets at those offices pursuant to this Agreement, require any filing
      with,
      authorization, consent or approval of, any Governmental Entity or other Person
      (including consents from parties to loans, contracts, leases and other
      agreements to which the Purchaser is a party), (iv)  result in a violation
      or breach of, or constitute (with or without due notice or the passage of time
      or both) a default (or give rise to any right of termination, amendment,
      cancellation or acceleration) under, any of the terms, conditions or provisions
      of any agreement, (v)  violate any order, writ, injunction, decree,
      statute, rule or regulation applicable to any of the Purchaser’s properties or
      assets.

     

    Section
      5.4  Compliance
      with Laws; Permits. 

     

    (a)  The
      Purchaser has complied in a timely manner with all laws, rules and regulations,
      ordinances, judgments, decrees, orders, writs and injunctions of all United
      States federal, state, local, foreign governments and agencies thereof that
      affect the assets or business of the Purchaser, except
      for any such failure to comply that would not have, or be reasonably likely
      to
      have, individually or in the aggregate, a Purchaser Material Adverse
      Effect;
      and no
      written notice, charge, claim, action or assertion has been received by the
      Purchaser or, to the Purchaser’s knowledge, has been filed, commenced or
      threatened against the Purchaser alleging any material violation of any of
      the
      foregoing.

     

    (b)  The
      Purchaser currently has all Permits which are required for the ownership of
      the
      Purchaser’s properties and assets and the conduct of the Purchaser’s business as
      presently conducted. The Purchaser is not in default or violation, and no event
      has occurred which, with notice or the lapse of time or both, would constitute
      a
      default or violation, of any term, condition or provision of any Permit to
      which
      the Purchaser is a party, to which its business as presently conducted is
      subject or by which any of its properties or assets are bound, except where
      the
      existence of such default or violation would not have, or be reasonably likely
      to have, individually or in the aggregate, a Purchaser Material Adverse Effect.
      All applications required to have been filed for the renewal of any Permit
      of
      the Purchaser have been duly filed on a timely basis with the appropriate
      Governmental Entity, and all other filings required to have been made with
      respect to any such Permit have been duly made on a timely basis with the
      appropriate Governmental Entity except where the failure to file would not
      have,
      or be reasonably likely to have, individually or in the aggregate, a Purchaser
      Material Adverse Effect.

     

    Section
      5.5  Brokers
      or Finders.
      Except
      for the Purchaser’s engagement of Classic Strategies Group, neither the
      Purchaser nor any of its Subsidiaries or Affiliates has entered into any
      agreement or arrangement entitling any agent, broker, investment banker,
      financial advisor or other firm or Person to any broker’s or finder’s fee or any
      other commission or similar fee in connection with the Transaction.

     

    Section
      5.6  Absence
      of Litigation. To the Purchaser’s knowledge, there are no actions, suits,
      Proceedings, investigations or grievances pending or threatened against the
      Purchaser, (i) challenging the validity or propriety of the Transaction; or
      (ii) which could adversely affect the ability of the Purchaser to perform
      its obligations under this Agreement.

     

    Section
      5.7  Purchaser
      Net Worth. Purchaser has a net worth of not less than $10,000,000 and liquidity
      in an amount that is reasonably sufficient to enable the Purchaser to satisfy
      its indemnification obligations under Article IX of this Agreement.

     

    ARTICLE
      VI  

     

    

     

    COVENANTS

     

    Section
      6.1  Interim
      Operations of the Seller.
      The
      Seller covenants and agrees that, after the date hereof and prior to the Closing
      Date (unless another date is specified), except (i) as expressly provided
      in this Agreement, (ii) as set forth in the Disclosure Schedule, or
      (iii) as may be agreed in writing by the Purchaser:

     

    (a)  the
      Business shall be conducted in the same manner as heretofore conducted and
      only
      in the ordinary course, and the Seller shall use all commercially reasonable
      efforts to (i) preserve the business organization of the Seller,
      (ii) keep available the services of the current officers and employees of
      the Seller that are engaged in the Business (provided that commercially
      reasonable efforts shall not require the Seller to offer any officers or
      employees any particular salary, bonus or other form of remuneration), and
      (iii) maintain the existing relations with Customers, creditors, business
      partners and others having business dealings with the Seller in connection
      with
      the Business. 

     

    (b)  the
      Seller shall not modify, amend or terminate any of its Contracts or waive,
      release or assign any material rights or claims, except in the ordinary course
      of business and consistent with past practice;

     

    (c)  the
      Seller shall not, except in the ordinary course of business and consistent
      with
      past practice, dispose of or permit to lapse any rights to any Seller
      Intellectual Property;

     

    (d)  the
      Seller shall not lease, license, mortgage, pledge or encumber any Assets or
      transfer, sell or dispose of any Assets, except in the ordinary and usual course
      of business and consistent with past practice;

     

    (e)  the
      Seller shall not: (i) make any change in the compensation payable or to
      become payable to any of its officers, directors, employees, agents or
      consultants (other than normal recurring increases in the ordinary course of
      business of wages payable to employees who are not officers or directors or
      Affiliates of the Seller) or to Persons providing management services that
      are
      engaged in the Business, or (ii) enter into or amend any employment,
      severance, consulting, termination or other agreement with, or employee benefit
      plan for, or make any loan or advance to, any of its officers, directors,
      employees, Affiliates, agents or consultants that are engaged in the Business
      or
      (iii) make any change in its existing borrowing or lending arrangements for
      or on behalf of any of such Persons pursuant to an employee benefit plan or
      otherwise;

     

    (f)  the
      Seller shall not permit any insurance policy naming it as a beneficiary or
      a
      loss payable payee to be cancelled or terminated without notice to the
      Purchaser;

     

    (g)  the
      Seller shall not adopt a plan of complete or partial liquidation, dissolution,
      merger, consolidation, restructuring, recapitalization or other reorganization
      of the Seller; 

     

    (h)  the
      Seller shall not enter into any agreement, contract, commitment or arrangement
      to do any of the foregoing, or authorize, recommend, propose or announce an
      intention to do, any of the foregoing;

     

    (i)  the
      Seller shall not permit any Lien on any of the Assets, except in the ordinary
      course of business and consistent with past practice; and

     

    (j)  the
      Seller shall not amend or alter the terms of any Contract, except in the
      ordinary course of business and consistent with past practice.

     

    Section
      6.2  Assignment
      of Rights and Delegation of Obligations by the Purchaser.
      In the
      event the Purchaser elects to assign its rights and delegate its obligations
      under this Agreement to an Assignee, the Purchaser will remain responsible
      for,
      and does hereby unconditionally guarantee the performance by the Assignee of,
      all covenants, agreements and obligations of the Purchaser hereunder that are
      delegated to the Assignee. Accordingly, the Purchaser hereby agrees to indemnify
      the Seller and the Unitholder, and hold the Seller and the Unitholder harmless,
      against any and all Losses and Liabilities that the Seller or the Unitholder
      incurs as a result of any breach by the Assignee of any of the representations,
      warranties, covenants, agreements or obligations assumed or made by the Assignee
      under the assignment and assumption agreement between the Purchaser and such
      Assignee (the “Assignment and Assumption Agreement”). Any Assignment and
      Assumption Agreement pursuant to which the Purchaser assigns its rights and
      delegates its obligations under this Agreement to an Assignee shall contain
      representations, warranties, covenants and agreements on the part of the
      Assignee, to and for the direct benefit of the Seller and the Unitholder,
      substantially as follows:

     

    (a)  The
      Assignee is duly organized, validly existing and in good standing under the
      laws
      of its jurisdiction of formation and
      has
      all requisite limited liability company or other power and authority and all
      necessary governmental approvals to own, lease and operate its properties and
      to
      carry on its business as now being conducted, except where the failure to have
      such approvals would not have, or be reasonably likely to have, individually
      or
      in the aggregate, a Purchaser Material Adverse Effect. The Assignee is duly
      qualified or licensed to do business and is in good standing in each
      jurisdiction in which either the ownership or use by the Assignee of the Assets
      or the operation by the Assignee of the Business upon consummation of the
      Transaction contemplated hereunder, requires such licensing, qualification
      or
      good standing, except where the failure to have such qualification or license
      would not have, or be reasonably likely to have, individually or in the
      aggregate, a Purchaser Material Adverse Effect.

     

    (b)  The
      Assignee has full power and authority to execute and deliver the Assignment
      and
      Assumption Agreement, to consummate the Transaction and to perform its
      obligations under this Agreement. The execution, delivery and performance by
      the
      Assignee of Assignment and Assumption Agreement and the consummation of the
      Transaction have been duly authorized by the Assignee, and no other action
      on
      the part of the Assignee is necessary to authorize the execution and delivery by
      the Purchaser of Assignment and Assumption Agreement or the consummation of
      the
      Transaction. The Assignment and Assumption Agreement has been duly executed
      and
      delivered by the Assignee, and, assuming due and valid authorization, execution
      and delivery thereof by the Purchaser, is a legal, valid and binding obligation
      of the Assignee, enforceable against the Assignee in accordance with its
      terms.

     

    (c)  None
      of
      the execution and delivery of the Assignment and Assumption Agreement by the
      Assignee, the performance by the Assignee of the Purchaser’s obligations under
      this Agreement that the Assignee so assumes or the consummation by the Assignee
      of the Transaction or compliance by the Assignee with any of the provisions
      hereof will (i) conflict with or result in any breach of any provision of
      the certificate of formation, limited liability company agreement or similar
      organizational documents of the Assignee, (ii) be in violation of any agreement
      to which the Assignee is a party or by which the Assignee is bound except where
      the violation would not have, or be reasonably likely to have, individually
      or
      in the aggregate, a Purchaser Material Adverse Effect; (iii) other than license
      applications to be filed by the Assignee with applicable Governmental Entities,
      including but not limited to state mortgage licensing authorities, with respect
      to each of the Seller’s offices that the Assignee will be acquiring through its
      assumption of the Leases and purchase of the Assets at those offices pursuant
      to
      this Agreement, require any filing with, authorization, consent or approval
      of,
      any Governmental Entity or other Person (including consents from parties to
      loans, contracts, leases and other agreements to which the Purchaser is a
      party), or (iv) violate any order, writ, injunction, decree, statute, rule
      or regulation applicable to any of the Assignee’s properties or assets except
      where the violation would not have, or be reasonably likely to have,
      individually or in the aggregate, a Purchaser Material Adverse
      Effect.

     

    (d)  The
      Assignee has complied in a timely manner with all laws, rules and regulations,
      ordinances, judgments, decrees, orders, writs and injunctions of all United
      States federal, state, local, foreign governments and agencies thereof that
      affect the assets or business of the Assignee, except
      for any such failure to comply that would not have, or be reasonably likely
      to
      have, a Purchaser Material Adverse Effect;
      and no
      written notice, charge, claim, action or assertion has been received by the
      Assignee or, to the Assignee’s knowledge, has been filed, commenced or
      threatened against the Assignee alleging any material violation of any of the
      foregoing.

     

    (e)  The
      Assignee covenants and agrees to apply promptly for, and to use its best efforts
      to obtain as soon as reasonably practicable after the date of the Assignment
      and
      Assumption Agreement, all of the Permits, including but not limited to all
      state
      mortgage licenses, which are required for the Assignee to own the Assets and
      operate the Business immediately following the Closing. The Assignee currently
      has all Permits, including but not limited to all state mortgage licenses,
      which
      are required for the ownership of the Assignee’s properties and assets and the
      conduct of the Assignee’s business as presently conducted. The Assignee is not
      in default or violation, and no event has occurred which, with notice or the
      lapse of time or both, would constitute a default or violation, of any term,
      condition or provision of any Permit to which the Assignee is a party, to which
      its business as presently conducted is subject or by which any of its properties
      or assets are bound except where the existence of such default or violation
      would not have, or be reasonably likely to have, individually or in the
      aggregate, a Purchaser Material Adverse Effect. All applications required to
      have been filed for the renewal of any of the Assignee’s existing Permits have
      been duly filed on a timely basis with the appropriate Governmental Entity,
      and
      all other filings required to have been made with respect to any such Permit
      have been duly made on a timely basis with the appropriate Governmental Entity
      except where the failure to file would not have, or be reasonably likely to
      have, individually or in the aggregate, a Purchaser Material Adverse
      Effect.

     

    (f)  To
      the
      Assignee’s knowledge, there are no actions, suits, Proceedings, investigations
      or grievances pending or threatened against the Assignee, (i) challenging
      the validity or propriety of the Transaction; or (ii) which could adversely
      affect the ability of the Assignee to perform its obligations under this
      Agreement.

     

    (g)  The
      Assignee understands and agrees that the Seller is a named third-party
      beneficiary of the Assignment and Assumption Agreement, and the Assignee agrees
      that all covenants, agreements and obligations of the Purchaser under this
      Agreement that are delegated to the Assignee under the Assignment and Assumption
      Agreement shall become covenants, agreement and obligations of the Assignee
      to
      and for the direct benefit of the Seller and the Seller shall have, as a
      non-exclusive remedy, a direct right of action against the Assignee in the
      event
      of any breach by the Assignee of any such covenant, agreement or
      obligation.

     

    Section
      6.3  Access.
      During
      the period beginning on the date of the announcement by the Seller of the
      transactions contemplated by this Agreement to its employees (the
“Announcement”) and ending on the Closing, the Seller shall afford to the
      Purchaser and its officers, managers, employees, auditors, legal counsel,
      agents, advisors and other authorized representatives (collectively,
“Representatives”) reasonable access during normal business hours to inspect,
      investigate and audit the contracts and operations and the Business of the
      Seller and to review all accounting books and records of the Seller, provided,
      however, that any such inspection, investigation or audit by the Purchaser
      shall
      in no event affect the representations and warranties made by the Seller or
      the
      Unitholder in this Agreement or the remedies of the Purchaser for breaches
      of
      the Seller’s representations and warranties hereunder. After the Closing Date,
      the Seller shall afford the Purchaser and its Representatives reasonable access
      to all accounting books and records of the Seller as reasonably requested by
      the
      Purchaser.

     

    Section
      6.4  Government
      Approvals. Promptly following the execution of this Agreement, each
      Party,
      with
      the reasonable cooperation of the other Party, shall use its commercially
      reasonable efforts to obtain the necessary licenses and approvals from, and
      submit the appropriate notices or materials to, to the extent required or
      appropriate under applicable law, all federal and state governmental mortgage
      banking regulatory agencies, all federal and state governmental real estate
      escrow and settlement regulatory agencies and other governing federal and state
      agencies regarding the transactions contemplated by this Agreement. In addition,
      the Seller or the Purchaser, as required under applicable law, shall obtain
      all
      necessary approvals, consents and non-objection notices from all federal and
      state governmental mortgage banking regulatory agencies, all federal and state
      governmental real estate escrow and settlement regulatory agencies and other
      governing federal and state agencies regarding the transactions contemplated
      by
      this Agreement.

     

    Section
      6.5  Further
      Action. Each of the Purchaser, the Unitholder and the Seller shall use its
      commercially reasonable efforts to (i) take all actions necessary or appropriate
      to consummate the Transaction and (ii) cause the fulfillment at the earliest
      practicable date of all of the conditions to their respective obligations to
      consummate the Transaction.

     

    Section
      6.6  No
      Solicitation of Competing Transaction. From and after the date hereof until
      the
      Closing Date, neither the Seller nor any Affiliate of the Seller shall (and
      the
      Seller shall cause the officers, directors, employees, representatives and
      agents of the Seller and each Affiliate of the Seller, including investment
      bankers, attorneys and accountants, not to), directly or indirectly, encourage,
      solicit, initiate or participate in discussions or negotiations with, or provide
      any information to, any Person or group (other than the Purchaser, any of its
      Affiliates or representatives) concerning any Acquisition Proposal. The Seller
      shall not enter into any agreement with respect to any Acquisition Proposal.
      Upon execution of this Agreement, the Unitholder and the Seller shall
      immediately cease any existing activities, discussions or negotiations with
      any
      parties conducted heretofore with respect to any of the foregoing. The Seller
      shall promptly notify the Purchaser of the existence of any proposal or inquiry
      received by the Seller or any Unitholder, and the Seller shall immediately
      communicate to the Purchaser the terms of any proposal or inquiry which any
      of
      them may receive (and shall immediately provide to the Purchaser copies of
      any
      written materials received by the Seller or any Unitholder in connection with
      such proposal, discussion, negotiation or inquiry) and the identity of the
      party
      making such proposal or inquiry. 

     

    Section
      6.7  Non-Solicitation
      and Confidentiality.

     

    (a)  During
      the period commencing on as of the date hereof and ending on the third (3rd)
      anniversary of the Closing Date, the Seller and the Unitholder covenant and
      agree that neither the Seller nor the Unitholder will,
      without the express prior written approval of the Purchaser, directly or
      indirectly, (i) solicit, recruit, contract with, induce or attempt to influence
      or advise, any current or former sales agent, Referral Source, current or former
      employees, agent, representative or any other person that has an employment,
      agency or business relationship with the Seller related to the Business as
      of
      the date hereof to terminate or otherwise impair his employment or other
      relationship with the Purchaser or hire, engage or enter into any co-ownership
      or other arrangement with any such person or (ii) interfere with, or seek to
      interfere with, the relationship or potential relationship between the Purchaser
      and/or any sales agent, Referral Source, employees, agent, representative or
      any
      other person that has an employment, agency or business relationship with the
      Seller as of the date hereof.

     

    (b)  From
      and
      after the date hereof, the Seller, the Unitholder and
      each
      of their Affiliates shall hold in confidence and shall cause all of their
      representatives and advisors to hold in confidence all confidential documents
      and information with respect to the Assets and agrees not to disclose, publish
      or make use of the same to any third party without the consent of the Purchaser,
      except to the extent that such information shall have become public knowledge
      other than by breach of this Agreement. Neither the Seller nor the Unitholder
      nor their respective officers, directors and affiliates shall have any
      obligation to hold in confidence all confidential documents and information
      with
      respect to the Assets if and to the extent disclosure thereof is specifically
      required by law; provided, that in the event disclosure is required by
      applicable law, the Seller and the Unitholder shall, to the extent reasonably
      possible, provide the Purchaser with prompt notice of such requirement prior
      to
      making any disclosure so that the Purchaser may seek an appropriate protective
      order.

     

    (c)  From
      and
      after the date hereof, the Seller, the Unitholder and
      each
      of their Affiliates shall hold in confidence and shall cause all of their
      representatives and advisors to hold in confidence all confidential documents
      and information with respect to the identity of the Assignee, if any, and agrees
      not to disclose, publish or make use of the same to any third party without
      the
      consent of the Purchaser, except to the extent such disclosure is required
      by
      Law. 

     

    (d)  The
      parties recognize that a breach by the Seller or the Unitholder of this
Section
      6.7
      may
      cause irreparable and material loss and damage to the Purchaser as to which
      the
      Purchaser will not have an adequate remedy at law or in damages. Accordingly,
      each party acknowledges that the issuance of an injunction or other equitable
      remedy is an appropriate remedy for any such breach without the necessity of
      proving that monetary damages are inadequate or cannot be measured and without
      posting any bond or other security. 

     

    (e)  To
      the
      extent that the covenants provided for in this Section
      6.7
      may
      later be deemed by a court to be too broad to be enforced with respect to its
      duration or with respect to any particular activity or geographic area, the
      court making such determination shall have the power to reduce the duration
      or
      scope of this Section
      6.7,
      and to
      add or delete specific words or phrases. This Section
      6.7,
      as
      modified, shall then be enforced.

     

    Section
      6.8  Use
      of
      Name.
      On the
      Closing Date, the Seller shall change the Seller’s name to a name that is not
      similar to “Opteum Financial Services” and, within thirty (30) days after the
      Closing Date, will cease using, directly or indirectly, in any manner the name
      “Opteum Financial Services” or any Intellectual Property that is similar in
      sound or appearance. The Seller and the Purchaser acknowledge and agree that
      all
      such Intellectual Property shall be considered Seller Intellectual Property.
      The
      Unitholder acknowledges and agrees that, after the Closing Date, the Purchaser
      may use the name “Opteum Financial Services” and all derivations thereof;
      provided, however, that the Purchaser agrees not to use, and shall not have
      any
      right or interest in, the following names until such date that the Seller and
      its Affiliates no longer need to use such names: Opteum Mortgage Acceptance
      Corporation, Opteum Group, LLC, Opteum Financial Services Corporation or Opteum
      SPV2, LLC. 

     

    Section
      6.9  Unitholder’s
      Name. On or before December 31, 2007, the Unitholder shall change the
      Unitholder’s corporate name to a name that is not similar to “Opteum” and
      thereafter will not directly or indirectly use in any manner the name “Opteum”
or any Intellectual Property that is similar in sound or appearance thereto
      and
      shall transfer all of the Unitholder’s right, title and interest in and to all
      such Intellectual Property to the Purchaser. Neither the use of the name “Opteum
      Financial Services” nor any derivation thereof by the Purchaser following the
      Closing Date shall be deemed to be an infringement upon the rights of the
      Unitholder. After the Closing Date and prior to the completion of the transfer
      of the Unitholder’s above-referenced Intellectual Property to the Purchaser, the
      Unitholder shall maintain a link on the www.opteum.com website and all of its
      other websites directing consumers seeking products or services related to
      the
      Business to a website designated by the Purchaser. The Purchaser agrees that
      upon the completion of the change of the Unitholder’s corporate name, and the
      above-referenced transfer of Intellectual Property, the Purchaser shall maintain
      a link on the www.opteum.com website directing consumers seeking products or
      services provided by the Seller or the Unitholder to the then current websites
      of the Seller or the Unitholder as designated by them.

     

    Section
      6.10  Employee-Related
      Matters.
      It is
      the intention of the Purchaser that the Purchaser shall employ substantially
      all
      of the Seller’s existing qualified loan production and production support
      employees that are employed in connection with the operation of the Business
      and
      such other individuals as are set forth in Exhibit 4.14. Within five (5)
      calendar days of the date hereof, the Purchaser shall deliver to the Seller
      a
      list of the names of those employees that the Purchaser desires to hire after
      Closing (“Retained Employees”). The Purchaser shall also decide upon, and offer,
      the appropriate retention bonuses to be paid to the Transferred Employees.
      All
      Retained Employees who accept an offer of employment from the Purchaser shall
      become “Transferred Employees.” Following the Closing, in the event the
      Purchaser is required to pay a Transferred Employee for accrued vacation time
      or
      other benefits, the Seller shall reimburse the Purchaser for that portion of
      the
      accrued vacation time or benefits related to the period prior to the Closing
      Date.

     

    Section
      6.11  Transition
      Services. Each of the Purchaser and the Seller shall use its commercially
      reasonable efforts to negotiate and mutually agree to an agreement in
      substantially the form attached hereto as Exhibit 6.11, pursuant to which (A)
      the Purchaser shall make available to the Seller (i) such of the Transferred
      Employees as the Seller may reasonably request; (ii) all of the Computer
      Software used in connection with the Business and (iii) the Business’ reporting,
      compliance, accounting and financial systems to support the Seller in transition
      activities, and (B) the Seller shall make available to the Purchaser any other
      systems of the Seller that are not included in the Assets for the purpose of
      operating the Business until such time as the Purchaser can perform all
      functions of the Business using the Purchaser’s systems, all of which shall be
      subject to mutually agreed upon cost sharing arrangements (the “Transition
      Services Agreement”).

     

    Section
      6.12  Sublease
      Agreements. Between the date of this Agreement and the Closing Date, each of
      the
      Purchaser and the Seller shall use its commercially reasonable efforts to
      negotiate and mutually agree to sublease agreements pursuant to which the
      Purchaser will agree to sublease from the Seller (i) an approximately 17,500
      square foot office space located at West 115 Century
      Road, Paramus, New Jersey, and (ii) an approximately 9,000 square foot office
      space located at 1 Overton Park, 3625 Cumberland Boulevard, Atlanta, Georgia,
      in
      each case at the same rental rate that is payable by the lessee under each
      lease (the “Subleases”). 

     

    Section
      6.13  Permitted
      Liens. The Seller shall cause to be paid or reimburse the Purchaser with respect
      to all amounts related to Permitted Liens in excess of $50,000.

     

    Section
      6.14  WARN
      Act
      Compliance. The Seller and the Purchaser shall take reasonable steps to
      cooperate with each to take or avoid taking such actions as would result in
      the
      application of the WARN Act in connection with the cessation of the Seller’s
      operations; provided, however, that Seller shall bear no responsibility for
      any
      WARN Act non-compliance that results from the termination by the Purchaser
      of
      any Transferred Employees after the Closing. 

     

    Section
      6.15  Tax
      Indemnity. The Seller and the Unitholder agree to indemnify the Purchaser and
      the Purchaser’s members, managers, officers, employees and agents from and
      against and agrees to hold each of them harmless from, any and all Losses
      incurred or suffered by them relating to or arising out of or in connection
      with
      any and all Taxes that have become due and payable during or which have accrued
      with respect to the Seller or the Unitholder for any period included in the
      Tax
      Indemnification Period and that have not been paid prior to the Closing Date.
      Any Taxes attributable to the operations of the Seller payable as a result
      of an
      audit of any Tax Return shall be deemed to have accrued in the period to which
      such taxes are attributable.

     

    Section
      6.16  Updating
      of Disclosure Schedules. Seller shall update the Disclosure Schedule and
      Exhibits not less than three (3) days prior to the Closing Date.

     

    Section
      6.17  Net
      Worth. 

     

    (a)  For
      a
      period of one year after the Closing Date, the Unitholder shall cause the Seller
      to maintain a net worth of not less than $10,000,000 and to maintain liquidity
      in an amount that is reasonably sufficient to enable the Seller to satisfy
      its
      indemnification obligations under Article IX of this Agreement. During such
      one
      year period, the Seller shall not make any distributions to its members or
      transfer any of its assets if such actions would cause the Seller’s net worth to
      fall below $10,000,000 or would cause the Seller’s liquidity to fall below an
      amount that is reasonably sufficient to enable the Seller to satisfy its
      indemnification obligations under Article IX of this Agreement.

     

    (b)  Until
      the
      earlier of the Closing or the termination of this Agreement, Purchaser shall
      maintain a net worth of not less than $10,000,000 and shall maintain liquidity
      in an amount that is reasonably sufficient to enable the Purchaser to satisfy
      its indemnification obligations under Article IX of this Agreement. During
      such
      period, the Purchaser shall not make any distributions to its members or
      transfer any of its assets if such actions would cause the Purchaser’s net worth
      to fall below $10,000,000 or would cause the Purchaser’s liquidity to fall below
      an amount that is reasonably sufficient to enable the Purchaser to satisfy
      its
      indemnification obligations under Article IX of this Agreement. 

     

    Section
      6.18  Assignment
      by the Purchaser.
      The
      Purchaser shall have the right, but not the obligation, to assign its rights
      under this Agreement to an Affiliate on or prior to the Closing Date; provided,
      however, the assignment of such rights shall not release the Purchaser of its
      obligations and liabilities hereunder.

     

    Section
      6.19  Insurance
      for Transferred Employees. The Seller shall, at the expense of the Purchaser,
      extend the existing health, dental and medical insurance benefits and policies
      with respect to the Transferred Employees until the later of (a) three months
      following the Closing Date or (b) the date on which the Transferred Employees
      become eligible for health, dental and medical insurance benefits and policies
      under the Purchaser’s (or the Assignee’s) plans.

     

    ARTICLE
      VII  

     

    

     

    CONDITIONS

     

    Section
      7.1  Conditions
      to Obligations of the Purchaser to Effect the Closing.

     

    (a)  The
      obligations of the Purchaser to consummate the Closing shall be subject to
      the
      satisfaction on or prior to the Closing of each of the following
      conditions:

     

    (i)  Government
      Actions.
      No
      judgment, order or injunction shall have been entered, issued or enforced by
      any
      Governmental Entity, that:

     

    (A)  compels
      the Seller to dispose of any material portion of the Assets or the Business;
      or

     

    (B)  prohibits
      the Seller or the Purchaser or its Assignee from consummating the Transaction,
      or requires the Seller to pay any damages that are material in relation to
      the
      Seller.

     

    (ii)  Purchaser
      or the Assignee shall have received the consent or approval of the applicable
      Governmental Entities, including but not limited to state mortgage licensing
      authorities, with respect to each of the Seller’s offices that Purchaser is
      acquiring through its assumption of the Leases and purchase of the Assets at
      those offices pursuant to this Agreement.

     

    (iii)  Material
      Adverse Change.
      Since
      the date of this Agreement, no event shall have occurred which has had, or
      could
      reasonably be expected to have, a Material Adverse Effect.

     

    (iv)  Representations
      and Warranties.
      The
      representations and warranties made by the Seller and the Unitholder herein
      shall be true and correct on the date hereof and on and as of the Closing Date
      in all material respects with the same force and effect as though such
      representations and warranties had been made on and as of the Closing Date;
      provided, however, all representations and warranties qualified by materiality
      shall be true and correct in all respects as of the Closing Date with the same
      force and effect as though such representations and warranties had been made
      on
      and as of the Closing Date, except to the extent that any such representation
      and warranty shall specifically relate solely to an earlier date (other than
      the
      date hereof), in which case such representation and warranty shall be true
      and
      correct in all respects as of such earlier date, and the Seller shall have
      delivered a certificate to the Purchaser which certifies to the
      foregoing.

     

    (v)  No
      Breach.
      The
      Seller and the Unitholder shall have performed in all material respects all
      agreements, covenants and obligations and complied in all material respects
      with
      all conditions contained in this Agreement that are required to be performed
      or
      complied with by it on or before the Closing Date, and at such time neither
      the
      Seller nor the Unitholder shall be in material default in the performance of
      or
      compliance with any of the provisions of this Agreement, and the Seller shall
      have delivered a certificate to the Purchaser which certifies to the foregoing
      (such certificate, together with the certificate referred to in (ii), the
“Seller
      Closing Certificates”).

     

    (vi)  Third
      Party Consents and Approvals. All
      consents and approvals (or in lieu thereof waivers) to the performance by the
      Seller and the Unitholder of their respective obligations under this
      Agreement or
      to the
      consummation of the Transaction or as otherwise required under any contract
      to
      which the Seller or the Unitholder is a party or by which any of the Assets
      are
      bound and where the failure to obtain any such consent or approval (or in lieu
      thereof waiver) could reasonably be expected, individually or in the aggregate
      with other such failures, to cause a Material Adverse Effect, (i) shall have
      been obtained and delivered to the Purchaser, (ii) shall be in form and
      substance satisfactory to the Purchaser, (iii) shall not be subject to the
      satisfaction of any condition that has not been satisfied or waived, and (iv)
      shall be in full force and effect. 

     

    (vii)  Landlord
      Approval.
      The
      Seller shall have obtained the consent of the landlords for the offices located
      at West 115 Century
      Road, Paramus, New Jersey and 3625 Cumberland Boulevard, Overton, Georgia to
      the
      sublease of a portion of the location to the Purchaser. 

     

    (viii)  Transferred
      Employees.
      Employees representing at least a minimum threshold of production of the
      Business as set forth on Exhibit
      2.4
      shall
      have agreed to accept employment with the Purchaser and become Transferred
      Employees.

     

    (ix)  Additional
      Deliveries by the Seller.
      At the
      Closing, the Seller shall deliver to the Purchaser:

     

    (A)  a
      certificate of good standing of Seller issued as of a recent date for the state
      of Delaware;

     

    (B)  a
      certificate from the secretary or appropriate manager of the Seller (i)
      certifying the Seller’s certificate of formation, (ii) certifying the Seller’s
      limited liability company agreement, (iii) certifying the incumbency of the
      Seller’s managers; and (iv) such other documents as are necessary to evidence
      the Seller’s authorization and power to enter into and perform the
      Transaction;

     

    (C)  a
      duly
      executed counterpart signed by the Seller of the Transition Services Agreement;
      

     

    (D)  a
      duly
      executed counterpart signed by the Seller of each of the Subleases;

     

    (E)  an
      opinion of the General Counsel of the Unitholder as to the matters set forth
      on
Exhibit
      7.1(a)(viii)(E);
      and

     

    (F)  a
      duly
      executed counterpart signed by the Seller of a bill of sale, assignment and
      assumption agreement, and any other documents, instruments or other items that
      are necessary or desirable to consummate the Transaction, as reasonably
      determined by the Purchaser (the “Transaction
      Documents”).

     

    The
      foregoing conditions are for the sole benefit of the Purchaser, may be waived
      by
      the Purchaser, in whole or in part, at any time and from time to time in the
      sole discretion of the Purchaser. The failure by the Purchaser at any time
      to
      exercise any of the foregoing rights shall not be deemed a waiver of any such
      right and each such right shall be deemed an ongoing right that may be asserted
      at any time and from time to time

     

    Section
      7.2  Conditions
      to Obligations of the Seller to Effect the Closing.

     

    (a)  The
      obligations of the Seller to consummate the Closing shall be subject to the
      satisfaction on or prior to the Closing of each of the following
      conditions:

     

    (i)  Representations
      and Warranties.
      All of
      the representations and warranties of the Purchaser set forth in this Agreement
      shall be true and correct in all respects and each such representation or
      warranty that is not so qualified shall be true and correct in all material
      respects, in each case as of the date of this Agreement and as of the
      Closing.

     

    (ii)  No
      Purchaser Breach.
      The
      Purchaser shall not have failed to perform in any material respect any material
      obligation or to comply in any material respect with any agreement or covenant
      of the Purchaser to be performed or complied with by it under this
      Agreement.

     

    (iii)  Certificate
      of the Purchaser’s Manager.
      The
      Seller shall have received from the Purchaser a certificate, dated as of the
      Closing, duly executed by a manager of the Purchaser to the effect of
      paragraphs (i) and (ii) above.

     

    (iv)  Purchaser
      Licenses.
      The
      Purchaser shall have such licenses, permits and authorizations as are necessary
      to conduct the Business.

     

    (v)  Additional
      Deliveries by the Purchaser.
      At the
      Closing, the Purchaser shall deliver:

     

    (A)  the
      Purchase Price by transfer of immediately available funds to such account at
      such bank as the Seller shall direct;

     

    (B)  a
      certificate of a manager of the Purchaser (i) certifying the Purchaser’s
      certificate of formation, (ii) certifying the Purchaser’s limited liability
      company agreement, (iii) certifying the incumbency of the Purchaser’s managers,
      and (iv) such other documents as are necessary to evidence the Purchaser’s
      authorization and power to enter into and perform the Transaction; 

     

    (C)  a
      duly
      executed counterpart signed by the Purchaser of the Transition Services
      Agreement;

     

    (D)  a
      duly
      executed counterpart signed by the Purchaser of each of the
      Subleases;

     

    (E)  a
      duly
      executed counterpart signed by the Purchaser or its Affiliate, as applicable,
      of
      each Transaction Document to which the Purchaser or any of its affiliates is
      a
      party; and

     

    (F)  as
      applicable, any other items required by the Transaction Documents.

     

    The
      foregoing conditions are for the sole benefit of the Seller, may be waived
      by
      the Seller, in whole or in part, at any time and from time to time in the sole
      discretion of the Seller. The failure by the Seller at any time to exercise
      any
      of the foregoing rights shall not be deemed a waiver of any such right and
      each
      such right shall be deemed an ongoing right that may be asserted at any time
      and
      from time to time.

     

    ARTICLE
      VIII  

     

    

     

    TERMINATION

     

    Section
      8.1  Termination.
      The
      Transaction may be terminated or abandoned at any time prior to the
      Closing:

     

    (a)  By
      the
      mutual written consent of the Purchaser and the Seller;

     

    (b)  By
      the
      Seller:

     

    (i)  if
      the
      Purchaser shall have breached in any material respect any of its
      representations, warranties, covenants or other agreements contained in this
      Agreement which would give rise to the failure of a condition set forth in
      Article VII,
      and
      which breach is not cured within twenty (20) days after the Seller gives the
      Purchaser written notice identifying the breach; or

     

    (ii)  on
      or
      after June 30, 2007, if the Closing shall not have theretofore occurred and
      if
      the failure of the Closing to occur is not the result of a breach of a
      representation, warranty, covenant or other agreement contained in this
      Agreement by the Seller or the Unitholder.

     

    (c)  By
      the
      Purchaser:

     

    (i)  if
      the
      Seller shall have breached in any material respect any of its representations,
      warranties, covenants or other agreements contained in this Agreement which
      would give rise to the failure of a condition set forth in Article VII,
      and
      which breach is not cured within twenty (20) days after the Purchaser gives
      the
      Seller written notice identifying the breach; or

     

    (ii)  on
      or
      after June 30, 2007, if
      the
      Closing shall not have theretofore occurred and if the failure of the Closing
      to
      occur is not the result of a breach of a representation, warranty, covenant
      or
      other agreement contained in this Agreement by the Purchaser.

     

    Section
      8.2  Effect
      of Termination.
      In the
      event of the termination of the Transaction by any party hereto pursuant to
      Section 8.1 of this Agreement, written notice thereof shall forthwith be given
      to the other party or parties specifying the provision hereof pursuant to which
      such termination of the Transaction is made, and there shall be no liability
      or
      obligation thereafter on the part of the Purchaser, the Seller or the
      Unitholder.

     

    ARTICLE
      IX  

     

    

     

    INDEMNIFICATION

     

    Section
      9.1  Survival
      of Representations and Warranties.
      The
      representations and warranties of the parties contained in Articles IV and
      V of
      this Agreement or any Transaction Document shall survive the Closing through
      and
      including the second anniversary of the Closing Date; provided, that the
      representations and warranties (a) of Seller set forth in Sections 4.1
      (Organization; Qualification), 4.2 (Authorization; Validity of Agreement),
      4.3
      (Consents and Approvals; No Violations) and 4.5 (Title to Properties; Liens)
      shall survive the Closing indefinitely, (b) of Seller set forth in Section
      4.12
      (Tax Matters) shall survive the Closing until sixty (60) days following the
      expiration of the applicable statute of limitations with respect to the
      particular matter that is the subject matter thereof and (c) of Purchaser set
      forth in Sections 5.1 (Organization), 5.2 (Authorization; Validity of Agreement)
      and 5.3 (Consents and Approvals; No Violations) shall survive the Closing
      indefinitely (in each case, the “Survival Period”); provided, further, that any
      obligation to indemnify and hold harmless shall not terminate with respect
      to
      any Losses as to which the Person to be indemnified shall have given notice
      (stating in reasonable detail the basis of the claim for indemnification) to
      the
      indemnifying party in accordance with Section 9.3(a) before the termination
      of
      the applicable Survival Period. Unless a specified period is set forth in this
      Agreement (in which event such specified period will control), the covenants
      and
      other agreements in this Agreement will survive the Closing and remain in effect
      until the third anniversary of the Closing Date.

     

    Section
      9.2  Indemnification.

     

    (a)  Subject
      to Sections
      9.1,
      9.3,
      9.4
      and
9.5,
      the
      Seller hereby agrees to indemnify and hold the Purchaser and its directors,
      officers, employees, Affiliates, stockholders, agents, attorneys,
      representatives, successors and assigns (collectively, the “Purchaser
      Indemnified Parties”)
      harmless from and against:

     

    (i)  any
      and
      all Losses and Liabilities based upon, attributable to or resulting from the
      failure of any of the representations or warranties of the Seller set forth
      in
      this Agreement to be true and correct in all respects at the date hereof and
      at
      the Closing Date;

     

    (ii)  any
      and
      all Losses and Liabilities based upon, attributable to or resulting from the
      breach of any covenant or other agreement on the part of the Seller or the
      Unitholder under this Agreement; 

     

    (iii)  any
      and
      all Losses and Liabilities attributable to any Transferred Employee resulting
      from or based upon (A) any employment-related Liability (statutory or otherwise)
      with respect to employment or termination of employment on or prior to the
      Closing Date, (B) except as set forth in the Transition Services Agreement,
      any
      Liability relating to, arising under or in connection with any Employee Benefit
      Plan, including any Liability under COBRA, whether arising prior to, on or
      within three (3) years after the Closing Date and (C) any liability under WARN,
      except as provided in Section
      6.14;

     

    (iv)  any
      and
      all Losses and Liabilities (other than Losses and Liabilities caused by the
      acts
      or omissions of the Purchaser) with respect to Pipeline Loans with an interest
      rates locked under the Seller’s loan policies; and

     

    (v)  any
      and
      all Losses and Liabilities arising out of, based upon or relating to any
      Excluded Asset, Excluded Liability or employee of other than Transferred
      Employees or the Seller’s ownership of the Assets or operation of the Business
      prior to the Closing or any event, act, omission or circumstance in connection
      therewith.

     

    (b)  Subject
      to Sections
      9.1,
      9.3,
      9.4
      and
9.5,
      Purchaser hereby agrees to indemnify and hold the Seller and its Affiliates,
      stockholders, agents, attorneys, representatives, successors and permitted
      assigns (collectively, the “Seller
      Indemnified Parties”)
      harmless from and against:

     

    (i)  any
      and
      all Losses based upon, attributable to or resulting from the failure of any
      of
      the representations or warranties of Purchaser set forth in this Agreement,
      to
      be true and correct at the date hereof and at the Closing Date;

     

    (ii)  any
      and
      all Losses based upon, attributable to or resulting from the breach of any
      covenant or other agreement on the part of Purchaser under this Agreement;
      

     

    (iii)  any
      and
      all Losses arising out of, based upon or relating to any Assumed Liability;
      and

     

    (iv)  any
      and
      all Losses arising out of, based upon or relating to Purchaser’s operation of
      the Business, any Asset or Transferred Employee, in each case arising after
      the
      Closing; and

     

    (v)  any
      and
      all Losses incurred by Seller as a result of any non-compliance with the WARN
      Act that results from termination of employment by Purchaser of any Transferred
      Employee.

     

    (c)  The
      right
      to indemnification or any other remedy provided for herein based on
      representations, warranties, covenants and agreements in this Agreement shall
      not be affected by any investigation conducted with respect to, or any knowledge
      acquired (or capable of being acquired) at any time, whether before or after
      the
      execution and delivery of this Agreement or the Closing Date, with respect
      to
      the accuracy or inaccuracy of or compliance with, any such representation,
      warranty, covenant or agreement. The waiver of any condition based on the
      accuracy of any representation or warranty, or on the performance of or
      compliance with any covenant or agreements, will not affect the right to
      indemnification or any other remedy provided for herein based on such
      representations, warranties, covenants and agreements.

     

    (d)  The
      rights to indemnification set forth in this Section
      9.2
      are
      subject to the terms, conditions, procedures and limitations set forth in this
      Article
      IX
      and will
      be the exclusive remedy of each party hereto against the other for money damages
      with respect to this Agreement or any of the transactions contemplated hereby;
      provided, that the limitations (including the immediately preceding clause
      providing for exclusivity of remedy) set forth in this Article
      IX
      shall
      not apply to any Losses caused by the willful misconduct, fraud, or bad faith
      of
      any indemnifying party, and the indemnifying party shall be liable for all
      Losses with respect thereto.

     

    Section
      9.3  Indemnification
      Procedures.

     

    (a)  A
      claim
      for indemnification for any matter not involving a third party claim may be
      asserted by written notice to the party from whom indemnification is sought,
      which notice shall include a reasonable description of the basis for the
      claim.

     

    (b)  In
      the
      event that any Legal Proceedings shall be instituted or that any claim or demand
      shall be asserted by any third party in respect of which payment may be sought
      under Section
      9.2
      hereof
      (“Third
      Party Claim”),
      the
      indemnified party shall promptly cause written notice of the assertion of any
      Third Party Claim of which it has knowledge which is covered by this indemnity
      to be forwarded to the indemnifying party. The indemnifying party shall have
      the
      right, at its sole expense, to be represented by counsel of its choice, which
      must be reasonably satisfactory to the indemnified party, and to defend against,
      negotiate, settle or otherwise deal with any Third Party Claim which relates
      to
      any Losses for which indemnification is sought hereunder. If the indemnifying
      party elects to defend against, negotiate, settle or otherwise deal with any
      Third Party Claim which relates to any Losses for which indemnification is
      sought hereunder, it shall within ten (10) days (or sooner, if the nature of
      the
      Third Party Claim so requires) notify the indemnified party of its intent to
      do
      so. If the indemnifying party elects not to defend against, negotiate, settle
      or
      otherwise deal with any Third Party Claim which relates to any Losses for which
      indemnification is sought hereunder, fails to notify the indemnified party
      of
      its election as herein provided the indemnified party may then, but only then,
      defend against, negotiate, settle or otherwise deal with such Third Party Claim.
      If the indemnified party defends any Third Party Claim, then the indemnifying
      party shall reimburse the indemnified party for the reasonable expenses of
      defending such Third Party Claim upon submission of periodic bills. If the
      indemnifying party shall assume the defense of any Third Party Claim, the
      indemnified party may participate, at his or its own expense, in the defense
      of
      such Third Party Claim; provided, that such indemnified party shall be entitled
      to participate in any such defense with separate counsel at the expense of
      the
      indemnifying party if (i) so requested by the indemnifying party to participate
      or (ii) in the reasonable opinion of counsel to the indemnified party a conflict
      or potential conflict exists between the indemnified party and the indemnifying
      party that would make such separate representation advisable; and provided,
      further, that the indemnifying party shall not be required to pay for more
      than
      one such counsel (and any appropriate local counsel) for all indemnified parties
      in connection with any Third Party Claim. The parties hereto agree to cooperate
      in all reasonable respects with each other in connection with the defense,
      negotiation or settlement of any such Third Party Claim. Notwithstanding
      anything in this Section
      9.3
      to the
      contrary, neither the indemnifying party nor the indemnified party shall,
      without the written consent of the other party, settle or compromise any Third
      Party Claim or permit a default or consent to entry of any judgment unless
      the
      claimant and such party provide to such other party an unqualified release
      from
      all liability in respect of the Third Party Claim. Notwithstanding the
      foregoing, if a settlement offer solely for money damages is made by the
      applicable third party claimant, and the indemnifying party notifies the
      indemnified party in writing of the indemnifying party’s willingness to accept
      the settlement offer and, subject to the applicable limitations of Section
      9.4,
      pay the
      amount called for by such offer, and the indemnified party declines to accept
      such offer, the indemnified party may continue to contest such Third Party
      Claim, free of any participation by the indemnifying party, and the amount
      of
      any ultimate liability with respect to such Third Party Claim that the
      indemnifying party has an obligation to pay hereunder shall be limited to the
      lesser of (A) the amount of the settlement offer that the indemnified party
      declined to accept plus the Losses of the indemnified party relating to such
      Third Party Claim through the date of its rejection of the settlement offer
      or
      (B) the aggregate Losses of the indemnified party with respect to such
      Third Party Claim. If the indemnifying party makes any payment on any Third
      Party Claim, the indemnifying party shall be subrogated, to the extent of such
      payment, to all rights and remedies of the indemnified party to any insurance
      benefits or other claims of the indemnified party with respect to such Third
      Party Claim.

     

    (c)  After
      any
      final judgment or award shall have been rendered by a Governmental Body of
      competent jurisdiction and the expiration of the time in which to appeal
      therefrom, or a settlement shall have been consummated, or the indemnified
      party
      and the indemnifying party shall have arrived at a mutually binding agreement
      with respect to an Third Party Claim hereunder, the indemnified party shall
      forward to the indemnifying party notice of any sums due and owing by the
      indemnifying party pursuant to this Agreement with respect to such matter and
      the indemnifying party shall be required to pay all of the sums so due and
      owing
      to the indemnified party by wire transfer of immediately available funds within
      five Business Days after the date of such notice.

     

    (d)  The
      failure of the indemnified party to give reasonably prompt notice of any Third
      Party Claim shall not release, waive or otherwise affect the indemnifying
      party’s obligations with respect thereto except to the extent that the
      indemnifying party can demonstrate actual loss and prejudice as a result of
      such
      failure.

     

    (e)  In
      the
      event that the Purchaser (i) repurchases any Pipeline Loans sold to investors
      or
      any other Person by Purchaser or incurs Losses with respect to any Pipeline
      Loans under facts or circumstances in which Seller would be obligated to
      indemnify Purchaser pursuant to this Agreement, or (ii) incurs any Losses (other
      than Losses caused by the acts or omissions of the Purchaser) with respect
      to
      Pipeline Loans with an interest rate locked under the Seller’s loan policies,
      then Seller may elect to repurchase such Pipeline Loans from Purchaser instead
      of indemnifying Purchaser pursuant to this Article
      IX.
      To
      exercise its right to repurchase any Pipeline Loan under this Section
      9.3(e),
      Seller
      must provide Purchaser with written notice of such election within five (5)
      Business Days of receipt of notice from Purchaser pursuant to this Section
      9.3
      of an
      indemnification claim for which Purchaser is seeking indemnification from
      Seller. The purchase price for any Pipeline Loan which Seller elects to
      repurchase from Purchaser pursuant to this Section
      9.3(e)
      shall be
      equal to the sum of (i) the purchase price paid by Purchaser to repurchase
      such
      Pipeline Loan plus
      (ii)
      Purchaser’s actual out-of-pocket costs and expenses for holding, servicing and
      administering such Pipeline Loan prior to the repurchase of such Pipeline Loan
      by Seller less
      (iii)
      any principal or interest paid by the borrower to Purchaser with respect to
      such
      Pipeline Loan. 

     

    Section
      9.4  Limitations
      on Indemnification.

     

    (a)  Seller
      shall not have any liability under Section
      9.2(a)(i)
      and
      Purchaser shall not have any liability under Section
      9.2(b)(i)
      unless
      and until the aggregate amount of Losses to the indemnified parties finally
      determined to arise thereunder based upon, attributable to or resulting from
      the
      failure of any of the representations or warranties (other than the
      representations and warranties set forth in Sections
      4.1
      (Organization; Qualification), 4.2
      (Authorization; Validity of Agreement), 4.3
      (Consents and Approvals; No Violations), 4.5
      (Title
      to Properties; Liens), 4.12
      (Tax
      Matters), 5.1
      (Organization), 5.2
      (Authorization; Validity of Agreement) and 5.3
      (Consents and Approvals; No Violations)) to be true and correct exceeds $100,000
      (the “Deductible”)
      and,
      in such event, the indemnifying party shall be required to pay only the amount
      of such Losses that exceeds the Deductible. No claim for Losses may be made
      for
      indemnification or aggregated with any other claim for indemnification pursuant
      to Section
      9.2(a)(i)
      or
Section
      9.2(b)(i)
      if the
      amount of such claim does not exceed $10,000 (the “Per
      Item Deductible”);
      provided, that the Per Item Deductible shall not apply to (i) any claims for
      indemnification pursuant to Section
      9.2(a)(i)
      or
Section
      9.2(b)(i)
      based
      upon, attributable to or resulting from the failure of any of the
      representations and warranties set forth in Sections
      4.1
      (Organization; Qualification), 4.2
      (Authorization; Validity of Agreement), 4.3
      (Consents and Approvals; No Violations), 4.5
      (Title
      to Properties; Liens), 4.12
      (Tax
      Matters), 5.1
      (Organization), 5.2
      (Authorization; Validity of Agreement) and 5.3
      (Consents and Approvals; No Violations) to be true and correct in all respects
      at the date hereof and at the Closing Date or (ii) claims for indemnification
      due to Losses related to the Pipeline Loans or repurchases of Pipeline Loans
      pursuant to Section
      9.3(e).

     

    (b)  No
      claim
      for Losses may be made for indemnification or aggregated with any other claim
      for indemnification by Purchaser under Section
      9.2(a)(ii)
      or
      Seller under Section
      9.2(b)(ii)
      if the
      amount of such claim does not exceed the Per Item Deductible (other than the
      covenants, agreements and obligations set forth in Sections
      6.5
      (Further
      Action), 6.6
      (No
      Solicitation of Competing Transaction), and 6.7
      (Non-Solicitation and Confidentiality)); provided, however, once the aggregate
      amount of claims subject to the Per Item Deductible and all other claims exceeds
      the Deductible, each claim thereafter shall no longer be subject to the Per
      Item
      Deductible.

     

    (c)  Neither
      Seller nor Purchaser shall be required to indemnify, any Person under
Section
      9.2(a)(i)
      or
9.2(b)(i)
      for an
      aggregate amount of Losses exceeding the Purchase Price (the “Cap”)
      in
      connection with Losses related to the breach of any of the representations
      and
      warranties of Seller or Purchaser in Articles IV
      and
V,
      respectively; provided, that the Cap limitation shall not apply to (i) Losses
      related to the breach of any representation or warranty contained in
Sections
      4.2
      (Authorization; Validity of Agreement), 4.5
      (Title
      to Properties; Liens) and 5.2
      (Authorization; Validity of Agreement) or (ii) claims for indemnification due
      to
      Losses related to the Pipeline Loans or repurchases of Pipeline Loans pursuant
      to Section
      9.3(e).
      Neither
      Seller nor Purchaser shall be required to indemnify, any Person under
Sections
      9.2(a)(ii)
      or
9.2(b)(ii)
      for
      breaches of the covenants, agreements or obligations set forth in Section
      6.4
      (Government Approvals) (but only to the extent that any such breach occurred
      after the Closing), and Section
      6.8
      (use of
      name) for an aggregate amount of Losses exceeding 25% of the Purchase
      Price.

     

    (d)  For
      purposes of (i) determining whether any representation or warranty was true
      and
      correct on the date hereof or as of the Closing Date, (ii) determining whether
      any covenant, agreement or obligation under this Agreement was breached, or
      (iii) calculating Losses hereunder, any materiality or Material Adverse Effect
      qualifications in the representations, warranties, covenants and agreements
      shall be disregarded.

     

    Section
      9.5  Tax
      Treatment of Indemnity Payments.
      Seller
      and Purchaser agree to treat any indemnity payment made pursuant to this Article
      IX as an adjustment to the Purchase Price for all Tax purposes. Notwithstanding
      the treatment required by the preceding sentence, the Liability of the
      indemnifying party with respect to any Losses shall be reduced by the Tax
      benefit actually realized and any insurance proceeds received by the indemnified
      party as a result of any Losses upon which an indemnification claim is based,
      and shall include any Tax detriment actually suffered by the indemnified party
      as a result of such Losses and any payment under this Article IX.

     

    ARTICLE
      X  

     

    

     

    MISCELLANEOUS

     

    Section
      10.1  Fees
      and Expenses.
      All
      costs and expenses incurred in connection with this Agreement and the
      consummation of the Transaction shall be paid by the party incurring such
      expenses.

     

    Section
      10.2  Amendment
      and Modification. This Agreement may be amended, modified and supplemented
      in
      any and all respects, but only by a written instrument signed by all of the
      parties hereto expressly stating that such instrument is intended to amend,
      modify or supplement this Agreement. 

     

    Section
      10.3  Publicity.
      The parties hereto shall consult in good faith with each other as to the form
      and substance of any press releases or other public announcements (including
      investor presentations and related presentations or outlines prepared or used
      by
      the Seller or the Unitholder), including any related question and answer
      guidelines prepared or used by the Seller or the Unitholder, related to the
      transactions contemplated hereby and any filings with any Governmental Body
      or
      with any national securities exchange or interdealer quotation service with
      respect thereto prior to issuing any press release or other public announcement
      or making any filing. Nothing in this Agreement shall be deemed to prohibit
      any
      party from making any disclosure or filing that it determines, upon the advice
      of counsel, is required by law or by obligations pursuant to any listing
      agreement with or rules of any national securities exchange or interdealer
      quotation service or to prohibit the Seller or the Unitholder from making
      disclosures in connection with other discussions, questions or comments in
      connection with investor relations matters the principal focus of which is
      not
      specifically related to the transactions contemplated hereby provided that
      such
      disclosures or comments are not designed to adversely affect the reputation
      or
      business of Purchaser or its Affiliates.

     

    Section
      10.4  Notices.
      All notices and other communications hereunder shall be in writing and shall
      be
      deemed given when mailed, delivered personally, telecopied (which is confirmed)
      or sent by an overnight courier service, such as Federal Express, to the parties
      at the following addresses (or at such other address for a party as shall be
      specified by such party by like notice):

     

                                                   
      if to the Purchaser, to:

    

                                   
      Prospect Mortgage Company, LLC

                                   
      c/o Sterling Capital Partners II, L.P.

    1033
      Skokie Boulevard, Suite 600

    Northbrook,
      Illinois 60062

    Attention:
      Mark Filler

    Telephone:
      (847) 480-4000

    Telecopy:
      (847) 480-0199

    

    with
      a
      copy to:

    

    Sterling
      Capital Partners II, L.P.

    1033
      Skokie Boulevard, Suite 600

    Northbrook,
      Illinois 60062

    Attention:
      Tom D. Wippman

    Telephone:
      (847) 480-4000

    Telecopy:
      (847) 480-0199

    

    and

    

    Horwood
      Marcus & Berk Chartered

    180
      North
      LaSalle Street, Suite 3700

    Chicago,
      Illinois 

    Attention:
      Jeffrey A. Hechtman, Esq.

    Telephone:
      (312) 606-3231

    Telecopy:
      (312) 264-2548

    

     

                                   
      if to the Seller or Unitholder, to:

     

                                   
      Opteum Inc.

    3305
      Flamingo Drive

    Vero
      Beach, FL  32963

    Attention:
      General Counsel

    Telephone:
      (772) 231-1400

    Telecopy:
      (772) 234-3355

     

    with
      a
      copy to:

     

    Hunton
      & Williams LLP 

    Riverfront
      Plaza, East Tower 

    951
      East
      Byrd Street 

    Richmond,
      VA 23219-4074

    Attention:
      Daniel M. LeBey

    Telephone:
      (804) 788-7366

    Telecopy:
      (804) 343-4543

     

    Section
      10.5  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 two or
      more counterparts have been signed by each of the parties and delivered to
      the
      other parties. Copies of executed counterparts transmitted by telecopy or other
      electronic transmission service shall be considered original executed
      counterparts, provided receipt of such counterparts is confirmed.

     

    Section
      10.6  Entire
      Agreement; No Third Party Beneficiaries. This Agreement and all other agreement
      or documents executed and delivered in connection with the Transaction
      (a) constitute the entire agreement and supersede all prior agreements and
      understandings, both written and oral, among the parties with respect to the
      subject matter hereof and thereof and (b) are not intended to confer any
      rights or remedies upon any Person other than the specified parties hereto
      and
      thereto.

     

    Section
      10.7  Severability.
      Any term or provision of this Agreement that is held by a court of competent
      jurisdiction or other authority to be invalid, void or unenforceable in any
      situation in any jurisdiction shall not affect the validity or enforceability
      of
      the remaining terms and provisions hereof or the validity or enforceability
      of
      the offending term or provision in any other situation or in any other
      jurisdiction. If the final judgment of a court of competent jurisdiction or
      other authority declares that any term or provision hereof is invalid, void
      or
      unenforceable, the parties agree that the court making such determination shall
      have the power to reduce the scope, duration, area or applicability of the
      term
      or provision, to delete specific words or phrases, or to replace any invalid,
      void or unenforceable term or provision with a term or provision that is valid
      and enforceable and that comes closest to expressing the intention of the
      invalid or unenforceable term or provision.

     

    Section
      10.8  Governing
      Law. This Agreement shall be governed by and construed in accordance with the
      laws of the State of New York, without giving effect to principles of conflicts
      of law.

     

    Section
      10.9  Consent
      to Jurisdiction; Forum Selection; Governing Law; Waiver of Jury
      Trial.

     

    (a) THE
      PARTIES HERETO AGREE THAT ANY ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH
      THIS AGREEMENT SHALL BE TRIED AND LITIGATED EXCLUSIVELY IN THE FEDERAL COURTS
      LOCATED IN NEW YORK, NEW YORK. THE AFOREMENTIONED CHOICE OF VENUE IS INTENDED
      BY
      THE PARTIES TO BE MANDATORY AND NOT PERMISSIVE IN NATURE, THEREBY PRECLUDING
      THE
      POSSIBILITY OF LITIGATION BETWEEN THE PARTIES WITH RESPECT TO OR ARISING OUT
      OF
      THIS AGREEMENT IN ANY JURISDICTION OTHER THAN THOSE SPECIFIED IN THIS
SECTION
      10.9.
      EACH PARTY HEREBY WAIVES ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM
      NON-CONVENIENS OR SIMILAR DOCTRINE OR TO OBJECT TO VENUE WITH RESPECT TO ANY
      PROCEEDING BROUGHT IN ACCORDANCE WITH THIS SECTION
      10.9,
      AND STIPULATES THAT THE FEDERAL COURTS LOCATED IN CHICAGO, ILLINOIS SHALL HAVE
      IN PERSONAL JURISDICTION AND VENUE OVER EACH OF THEM FOR THE PURPOSE OF
      LITIGATING ANY DISPUTE, CONTROVERSY OR PROCEEDING ARISING OUT OF OR RELATED
      TO
      THIS AGREEMENT. EACH PARTY HEREBY AUTHORIZES AND ACCEPTS SERVICE OF PROCESS
      SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST IT AS CONTEMPLATED
      BY
      THIS SECTION
      10.9
      BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID,
      TO
      ITS ADDRESS FOR THE GIVING OF NOTICES AS SET FORTH IN THIS AGREEMENT, OR IN
      THE
      MANNER SET FORTH IN SECTION
      10.9
      OF THIS AGREEMENT FOR THE GIVING OF NOTICE. ANY FINAL JUDGMENT RENDERED AGAINST
      A PARTY IN ANY ACTION OR PROCEEDING SHALL BE CONCLUSIVE AS TO THE SUBJECT OF
      SUCH FINAL JUDGMENT AND MAY BE ENFORCED IN OTHER JURISDICTIONS IN ANY MANNER
      PROVIDED BY LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
      HEREUNDER SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION
      AND EFFECT, BY THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO ITS RULES
      OF
      CONFLICTS OF LAW.

     

    (b) THE
      PARTIES HERETO HEREBY EXPRESSLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
      OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT, POWER, OR REMEDY UNDER OR IN
      CONNECTION WITH THIS AGREEMENT OR THE TRANSACTION OR UNDER OR IN CONNECTION
      WITH
      ANY AMENDMENT, INSTRUMENT, DOCUMENT, OR AGREEMENT DELIVERED OR WHICH MAY IN
      THE
      FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY
      RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTION,
      AND
      AGREE THAT ANY SUCH ACTION SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
      THE TERMS AND PROVISIONS OF THIS SECTION
      10.9(b)
      CONSTITUTE A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS
      AGREEMENT.

     

    Section
      10.10  Extension;
      Waiver.
      At any
      time prior to the Closing, the parties may (a) extend the time for the
      performance of any of the obligations or other acts of the other parties,
      (b) waive any inaccuracies in the representations and warranties of the
      other parties contained in this Agreement or in any document delivered pursuant
      to this Agreement or (c) waive compliance by the other parties with any of
      the agreements or conditions contained in this Agreement. Any agreement on
      the
      part of a party to any such extension or waiver shall be valid only if set
      forth
      in an instrument in writing signed on behalf of such party. The failure of
      any
      party to this Agreement to assert any of its rights under this Agreement or
      otherwise shall not constitute a waiver of those rights.

     

    Section
      10.11  Election
      of Remedies. Neither the exercise of nor the failure to exercise a right of
      set-off or to give notice of a claim under this Agreement will constitute an
      election of remedies or limit the Purchaser or any of the Purchaser Indemnified
      Parties in any manner in the enforcement of any other remedies that may be
      available to any of them, whether at law or in equity.

     

    Section
      10.12  Assignment.
      Neither this Agreement nor any of the rights, interests or obligations hereunder
      shall be assigned by any of the parties hereto (whether by operation of law
      or
      otherwise) without the prior written consent of the other parties, except that
      the Purchaser may assign, in its sole discretion, any or all of its rights
      and
      interests hereunder to any Affiliate of the Purchaser or to any Person that
      the
      Purchaser has entered into a definitive agreement to acquire on or before the
      date hereof. Subject to the preceding sentence, this Agreement shall be binding
      upon, inure to the benefit of and be enforceable by the parties and their
      respective successors and assigns.

     

    Section
      10.13  Interpretation.
      The headings contained in this Agreement are for reference purposes only and
      shall not affect in any way the interpretation of this Agreement. No provision
      of this Agreement shall be interpreted or construed against any party hereto
      solely because such party or its legal representative drafted such
      provision.

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

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

     

    PROSPECT
      MORTGAGE COMPANY,
      LLC

     

    By
        

     

    Name:
      

     

    Title:

     

    OPTEUM
      FINANCIAL SERVICES, LLC

     

    By
        

     

    Name:
      

     

    Title:

     

    OPTEUM
      INC.

     

    By
        

     

    Name:
      

     

    Title:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      1

     

    “Acquisition
      Proposal”
means
      any proposal or offer made by any Person other than the Purchaser or any
      Subsidiary of the Purchaser to acquire all or a substantial part of the Business
      or Assets or any capital stock of the Seller, whether by merger, tender offer,
      exchange offer, sale of assets or similar transactions involving the Seller
      or
      any division or operating or principal business unit of the Seller, other than
      any proposal or offer made by any Person other than the Purchaser or any
      Subsidiary of the Purchaser to acquire all or a substantial part of the conduit
      or wholesale mortgage origination businesses, the Unitholder’s real estate
      investment trust, or REIT, business, the telemarketing business of Homestar
      Direct, LLC, servicing rights and other servicing assets, including all
      contracts related thereto and rights thereunder, and any and all
      residuals.

     

    “Affiliate”
of
      a
      Person shall mean a Person that directly or indirectly, through one or more
      intermediaries, controls, is controlled by, or is under common control with
      the
      first mentioned Person.

     

    “Agreement”
or
      “this
      Agreement”
means
      this Asset Purchase Agreement, together with the Exhibits hereto and the
      Disclosure Schedule.

     

    “Announcement”
has
      the
      meaning set forth in Section
      6.3.

     

    “Assets”
has
      the
      meaning set forth in Section
      2.1.

     

    “Assignee”
shall
      mean any Person to whom the Purchaser assigns it rights and delegates its
      obligations hereunder in accordance with Section
      10.12.

     

    “Assumed
      Liabilities”
has
      the
      meaning set forth in Section
      2.3.

     

    “Balance
      Sheet”
means,
      as of any date, balance sheet of the Seller, prepared in accordance with
      GAAP.

     

    “Balance
      Sheet Date”
means
      March 31, 2007.

     

    “Books
      and Records”
means
      all books and records of the Seller (in whatever form or media), including,
      without limitation, accounting and operating ledgers, asset ledgers, inventory
      records, budgets, customer lists, supplier lists, mailing lists, resale
      certificates, advertising and sales materials, manuals, books, files,
      procedures, systems, copies of all financial statements and all other
      accounting, financial, operating and business records and other graphic or
      electronically stored accounting, financial, operating and business
      information.

     

    “Business”
has
      the
      meaning set forth in the Recitals hereof.

     

    “Business
      Day”
means
      a
      day other than Saturday, Sunday or any day on which banks located in the State
      of Illinois are authorized or obligated to close.

     

    “Cap”
has
      the
      meaning set forth in Section
      9.4.

    

    “Closing”
means
      the consummation of the Transaction.

     

    “Closing
      Date”
has
      the
      meaning set forth in Section
      3.1.

     

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

     

    “Computer
      Software”
means
      computer software programs, databases and all documentation related thereto,
      other than “off the shelf” software that is generally available to the public
      and has not been customized for use for the Business.

     

    “Contracts”
has
      the
      meaning set forth in Section
      4.9(a).

     

    “Copyrights”
means
      U.S. and foreign registered and unregistered copyrights (including those in
      Computer Software and databases), rights of publicity and all registrations
      and
      applications to register the same.

    

    “Customers”
means
      (i) customers of the Seller with respect to the Business, and (ii) prospective
      customers of the Seller with respect to the Business that have been derived
      from
      leads and/or lists developed by the Seller.

    

    “Deductible”
has
      the
      meaning set forth in Section
      9.4.

    

    “Disclosure
      Schedule”
means
      the disclosure schedule of even date herewith prepared by the Seller and
      delivered to the Purchaser simultaneously with the execution
      hereof.

     

    “Environmental
      Claim”
means
      any claim, action, cause of action, investigation or written notice by any
      Person alleging actual or potential liability for investigatory, cleanup or
      private or governmental response costs, or natural resources or property
      damages, or personal injuries, attorney’s fees or penalties relating to the
      presence, or release into the environment, of any Materials of Environmental
      Concern at any location owned, leased, operated or managed by the Seller or
      at
      which the Seller has any legal or equitable interest including by virtue of
      foreclosure, now or in the past, or (ii) circumstances forming the basis of
      any violation, or alleged violation, of any Environmental Law.

     

    “Environmental
      Law”
means
      each federal, state, local and foreign law and regulation relating to pollution,
      protection or preservation of human health or the environment, including without
      limitation, ambient air, surface water, ground water, land surface or subsurface
      strata, and natural resources, and including each law and regulation relating
      to
      emissions, discharges, releases or threatened releases of Materials of
      Environmental Concern, or otherwise relating to the manufacturing, processing,
      presence distribution, use, treatment, generation, storage, containment (whether
      above ground or underground), disposal, transport or handling of Materials
      of
      Environmental Concern, or the preservation of the environment or mitigation
      of
      adverse effects thereon and each law and regulation with regard to record
      keeping, notification, disclosure and reporting requirements respecting
      Materials of Environmental Concern.

     

    “Equipment,
      Fixtures and Furniture”
means
      all equipment, machinery, furniture, fixtures, leasehold improvements, office
      equipment and computer hardware and software of the Seller and all other items
      of a similar nature owned by the Seller.

     

    “Excluded
      Assets”
has
      the
      meaning set forth in Section
      2.2.

     

    “Financial
      Statements”
means
      (a) the audited consolidated balance sheet of the Seller as at
      December 31, 2006 together with statements of income and cash flows for the
      year then ended, which consolidated financial statements have been certified
      by
      an independent certified public accounting firm, whose reports thereon are
      included herein, (b) an unaudited consolidated balance sheet of the Seller
      as of February 28, 2007, and unaudited consolidated statements of income and
      cash flows for the period then ended.

     

    “GAAP”
means
      United States generally accepted accounting principles.

     

    “Governmental
      Entity”
means
      any federal, state or local court, arbitral tribunal, administrative agency
      or
      commission or other governmental or other regulatory authority or
      agency.

     

    “Intellectual
      Property”
means
      all of the following: Trademarks, Patents, Copyrights, Trade Secrets, Licenses,
      and all domain names, URLs and other similar property or property
      rights.

     

    “Leases”
means
      those leases or a portion thereof set forth in Exhibit
      2
      pursuant
      to which the Seller leases any real or personal property for the conduct of
      the
      Business that provide for annual lease obligations in excess of
      $50,000.

     

    “Liability”
means
      any debt, loss, damage, adverse claim, liability or obligation (whether direct
      or indirect, known or unknown, asserted or unasserted, absolute or contingent,
      accrued or unaccrued, liquidated or unliquidated, or due or to become due,
      and
      whether in contract, tort, strict liability or otherwise), and including all
      costs and expenses relating thereto.

     

    “Licenses”
means
      all licenses and agreements pursuant to which the Seller has acquired rights
      in
      or to any Trademarks, Patents or Copyrights, or licenses and agreements pursuant
      to which the Seller has licensed or transferred the right to use any of the
      foregoing.

     

    “Lien”
means
      any mortgage, lien (except for any lien for taxes not yet due and payable),
      charge, restriction, pledge, security interest, option, lease or sublease,
      claim, right of any third party, easement, encroachment or encumbrance.

     

    “Losses”
means
      all damages (including, without limitation, amounts paid in settlement with
      the
      consent of an indemnitor which consent may not be unreasonably withheld or
      delayed), losses (including, without limitation, any losses resulting from
      any
      exercise of any right of rescission provided by applicable law), obligations
      (including, without limitation, mortgage loan repurchase and indemnification
      obligations), liabilities, liens, deficiencies, costs (including reasonable
      costs of investigation and reasonable defense and attorneys’ and other
      professionals’ fees incurred in connection with the investigation and defense of
      any Third Party Claim and any other indemnification claim pursuant to which
      an
      indemnified party receives a payment or payments from the indemnifying party
      for
      such indemnification claim), Taxes, penalties, fines, interest, restitution
      payments, monetary sanctions, punitive damages, consequential damages and
      expenses incurred by the indemnified party, including, without limitation,
      attorneys’ fees and litigation costs incurred to comply with injunctions and
      other court and agency orders, and other costs and expenses incident to any
      Proceeding or to establish or enforce the indemnified party’s right to
      indemnification.

     

    “Material
      Adverse Effect”
or
      “Material
      Adverse Change”
means
      (i) a material adverse effect on the business, condition (financial or
      otherwise), assets or results of operations of the Business, taken as a whole,
      or (ii) a material impairment of, or delay in, the Seller’s or Unitholder’s
      ability to effect the Closing or to perform their respective obligations under
      this Agreement; provided, that none of the following shall be deemed to
      constitute or shall be taken into account in determining whether there has
      been
      a “Material Adverse Effect”: any event, circumstance, change or effect arising
      out of or attributable to (a) changes in the economy or financial markets,
      including, prevailing interest rates and market conditions, generally in the
      United States or that are the result of acts of war or terrorism, except to
      the
      extent any of the same materially disproportionately affects Seller or
      Unitholder as compared to other companies in the industry in which Seller or
      Unitholder operate; (b) changes that are caused by factors generally affecting
      the industry in which Seller or Unitholder operate, except to the extent any
      of
      the same materially disproportionately affects Seller or Unitholder; (c) any
      loss of, or adverse change in, the relationship Seller or Unitholder with their
      customers (other than Referral Sources) or suppliers caused by the announcement
      of the Transactions; (d) changes in, or in the application of, GAAP; (e) changes
      in applicable laws except to the extent any of the same materially
      disproportionately affects Seller or Unitholder as compared to other companies
      in the industry in which Seller operates; and (f) so long as the condition
      set
      forth in Section
      7.1(a)(vii)
      is
      satisfied, changes related to any employee employed by Seller in a sales
      function (including loan officers and production managers) who are intended
      to
      become Transferred Employees. 

     

    “Materials
      of Environmental Concern”
means
      chemicals; pollutants; contaminants; wastes; and toxic or hazardous substances,
      materials and wastes, including without limitation, petroleum and petroleum
      products; asbestos and asbestos-containing materials; polychlorinated biphenyls;
      lead and lead-based paints and materials and lead in water; and
      radon.

     

    “Mortgage”
means
      a
      mortgage, deed of trust or other similar security instrument that creates a
      Lien
      on real property.

     

    “Mortgage
      Loan”
means
      any loan that is, or upon closing or funding, will be, evidenced by a Mortgage
      or Mortgage Note and secured by a Mortgaged Property.

     

    “Mortgage
      Note”
means,
      with respect to a Mortgage Loan, a promissory note or notes, or other evidence
      of indebtedness, with respect to such Mortgage Loan secured by a Mortgage or
      Mortgages, together with any assignment, reinstatement, extension, endorsement
      or modification thereof.

     

    “Mortgaged
      Property”
means
      a
      fee simple property (or such other estate in real property as is commonly
      accepted as collateral for mortgage loans that are subject to secondary mortgage
      sales or securitizations) that secures a Mortgage Note and that is subject
      to a
      Mortgage.

     

    “Patents”
means
      issued U.S. and foreign patents and pending patent applications, patent
      disclosures, and any and all divisions, continuations, continuations-in-part,
      reissues, reexaminations, and extension thereof, any counterparts claiming
      priority therefrom, utility models, patents of importation/confirmation,
      certificates of invention and like statutory rights.

     

    “Per
      Item Deductible”
has
      the
      meaning set forth in Section
      9.4.

     

    “Permitted
      Liens”
shall
      mean (i) Liens for Taxes and other governmental charges and assessments that
      are
      not yet due and payable, or that are being contested in good faith by
      appropriate proceedings and (ii) Liens that do not materially adversely affect
      the Assets from the period commencing on the execution of this Agreement and
      extending to the Closing.

     

    “Person”
means
      a
      natural person, partnership, corporation, limited liability company, business
      trust, joint stock company, trust, unincorporated association, joint venture,
      Governmental Entity or other entity or organization.

     

    “Pipeline
      Loans”
means
      any residential mortgage loan for which an application has been taken by the
      Seller’s employees on or before the Closing Date, and that has not been closed,
      for which a check has not been issued or wire has not been sent as of the
      Closing Date and which relates to the Business..

     

    “Proceeding”
means
      any formal or informal proceeding, charge, complaint, examination, inquiry,
      investigation, audit, hearing, claim, demand, notice, action, suit, litigation,
      arbitration or mediation (in each case, whether civil, criminal, administrative
      or investigative) commenced, conducted, heard or pending by or before any
      Governmental Entity, arbitrator or mediator.

     

    “Purchase
      Price”
has
      the
      meaning set forth in Section
      2.4.

     

    “Purchaser”
has
      the
      meaning set forth in the Preamble hereof.

     

    “Purchaser
      Indemnified Parties”
means
      the Purchaser and each of its officers, directors, employees, agents, Affiliates
      and successors and assigns.

     

    “Purchaser
      Material
      Adverse Effect”
means
      (i) a material adverse effect on the business, condition (financial or
      otherwise), assets or results of operations of the business of the Purchaser
      or
      the Assignee, as the case may be, taken as a whole, or (ii) a material
      impairment of, or delay in, the Purchaser’s or Assignee’s, as the case may be,
      ability to effect the Closing or to perform their respective obligations under
      this Agreement; provided, that none of the following shall be deemed to
      constitute or shall be taken into account in determining whether there has
      been
      a “Material Adverse Effect”: any event, circumstance, change or effect arising
      out of or attributable to (a) changes in the economy or financial markets,
      including, prevailing interest rates and market conditions, generally in the
      United States or that are the result of acts of war or terrorism, except to
      the
      extent any of the same materially disproportionately affects the Purchaser
      or
      the Assignee, as the case may be, as compared to other companies in the industry
      in which the Purchaser or the Assignee, as the case may be, operate; (b) changes
      that are caused by factors generally affecting the industry in which the
      Purchaser or the Assignee, as the case may be, operate, except to the extent
      any
      of the same materially disproportionately affects the Purchaser or the Assignee,
      as the case may be; and (c) changes in, or in the application of, GAAP; (e)
      changes in applicable laws except to the extent any of the same materially
      disproportionately affects the Purchaser or the Assignee, as the case may be,
      as
      compared to other companies in the industry in which Seller
      operates.

     

    “Referral
      Source”
means
      any individual, partnership, limited liability company, corporation,
      association, trade group or other entity that refers Customers or that has
      provided leads and/or lists of Customers with respect to the
      Business.

     

    “Representatives”
has
      the
      meaning set forth in Section
      6.3.

     

    “Retained
      Employees”
has
      the
      meaning set forth in Section
      6.10.

     

    “Seller”
has
      the
      meaning set forth in the Preamble hereof.

     

    “Seller
      Indemnified Persons”
      means
      the Seller and each of its officers, directors, employees, agents, Affiliates
      and successors and assigns.

     

    “Seller
      Intellectual Property”
means
      all Intellectual Property that is currently used or held for use in the Business
      or that is necessary to conduct the Business as presently
      conducted.

     

    “Seller
      Closing Certificates”
has
      the
      meaning set forth in Section
      7.1(a)(iv).

     

    “Sublease”
has
      the
      meaning set forth in Section
      6.12.

     

    “Subsidiary”
means,
      with respect to any Person, any corporation or other organization, whether
      incorporated or unincorporated, of which (a) at least a majority of the
      securities or other interests having by their terms ordinary voting power to
      elect a majority of the board of directors or others performing similar
      functions with respect to such corporation or other organization is directly
      or
      indirectly owned or controlled by such Person or by any one or more of its
      Subsidiaries, or by such Person and one or more of its Subsidiaries or
      (b) such Person or any other Subsidiary of such Person is a general partner
      (excluding any such partnership where such Person or any Subsidiary of such
      party does not have a majority of the voting interest in such
      partnership).

     

    “Survival
      Period”
has
      the
      meaning set forth in Section
      9.1.

     

     “Tax”
means
      any (a) Federal, state, local or foreign tax, fee or other like assessment
      or charge of any kind, including, without limitation, any net income,
      alternative or add-on minimum tax, gross income, gross receipts, sales, use,
      ad
      valorem, value-added, transfer, franchise, profits, license, withholding on
      amounts paid to or by the taxpayer, payroll, employment, excise, severance,
      stamp, capital stock, occupation, property, environmental or windfall tax,
      premium, customs duty or other tax, together with any interest, penalty and
      additions to tax; (b) liability for the payment of Tax as the result of
      membership in any combined, unitary, consolidated or other affiliated group
      of
      which the Seller is or has been a member on or before the Closing; and
      (c) transferee or secondary liability in respect of any Tax (whether
      imposed by law or contractual arrangement).

     

    “Tax
      Indemnification Period”
means
      the period (including all prior taxable years) ending at and including the
      Closing Date. 

     

    “Tax
      Return”
means
      any return (including estimated returns), declaration, report, claim for refund,
      or information return or statement relating to Taxes, including any such
      document prepared on an affiliated, consolidated, combined or unitary group
      basis and any schedule or attachment thereto.

     

    “Third
      Party Claim”
has
      the
      meaning set forth in Section
      9.3(b).

     

    “Trademarks”
means
      U.S. and foreign registered and unregistered trademarks, trade dress, service
      marks, logos, trade names, corporate names and all registrations and
      applications to register the same.

     

    “Tradename”
means
      Opteum Financial Services and any derivation thereof.

     

    “Trade
      Secrets”
means
      all categories of trade secrets as defined in the Uniform Trade Secrets Act
      including business information.

     

    “Transaction”
means
      the transactions provided for or contemplated by this Agreement.

     

    “Transaction
      Documents”
has
      the
      meaning set forth in Section
      7.1(a)(viii).

     

    “Transferred
      Employees”
shall
      have the meaning set forth in Section
      6.10.

     

    “Transition
      Services Agreement”
shall
      have the meaning set forth in Section
      6.11.

     

    “Unitholder”
has
      the
      meaning set forth in the Preamble hereof.

     

    “WARN
      Act”
means
      the Worker Adjustment and Retraining Notification Act.

    
      69209.000007
        RICHMOND 2031393v10EX-10.1

Exhibit 10.1

Via Federal Express

April 20, 2007

Mr. James Green

1684 Oakcottage Court

Thousand Oaks, CA 91361

Dear Jim:

We are delighted to offer you the position of President and Chief Executive Officer (CEO) of
Analogic Corporation (Analogic). We are excited about the prospect of your joining Analogic and
look forward to your vision and leadership in guiding our Company to achieve its goals.

The following provides the terms and conditions of your employment offer set forth in this letter
Agreement (the “Agreement”):

	1.	 	Start Date. Your employment will commence on or before May 21, 2007.

	2.	 	Reporting Relationship. You will report to the Board of Directors.

	3.	 	Term. Your initial term of employment will be three years with subsequent one year renewals
unless either party gives notice to terminate at least ninety (90) days prior to any scheduled
expiration date.

	4.	 	Base Salary. Your starting annualized base salary will be $450,000 per year, with annual
reviews at the discretion of the Compensation Committee. The first review will occur as part
of normal year-end Company process for fiscal year 2008. Salary will be paid periodically in
accordance with normal Company payroll practices.

	5.	 	Annual Performance Bonus. Beginning in fiscal year 2008, you will be eligible to participate
in the Company’s annual bonus program with an initial target of 65% of your base salary (i.e.,
$292,500).

	 	a.	 	Your bonus for fiscal year 2008 is guaranteed at target (i.e.,
$292,500).

	 	b.	 	Goals for earning additional bonus amounts for fiscal year 2008 and
any portion of your bonus in future years are to be discussed and agreed with the
Compensation Committee and approved by the full Board.

1

	6.	 	Equity Grants. You will be eligible to participate in the Company’s long-term incentive
program, which currently consists of stock options and performance-based restricted stock. As
soon as practicable upon hire you will receive the following:

	 	a.	 	An initial grant of 5,000 shares of performance-based restricted
stock granted as part of the Company’s normal three (3) year performance cycle
beginning as soon as practicable after the start of the next fiscal year;

i. Note that the performance criteria are to be determined and we would expect
your input in determining the appropriate performance metrics and goals.

	 	ii.	 	If you are terminated by the Board without Cause (as
defined below) within three (3) years from the date of hire, the
performance goals will be deemed met and pro-rata shares shall vest based
on your employment period completed to date.

	 	b.	 	An initial grant of 15,000 time-based stock options, vesting 25% per
year beginning on second anniversary of grant date;

	 	i.	 	If you are terminated by the Board without Cause
within three (3) years from the date of hire, 50% of outstanding unvested
options will accelerate.

	 	c.	 	Other than the terms described above, these and future grants will be
made under the same terms and conditions as other participants; and

	 	d.	 	Future grants, including the types of award, may be made from time to
time based on Compensation Committee discretion.

	7.	 	One-Time Equity Grant. You will receive a one-time grant of time-based stock options and
restricted stock as follows:

	 	a.	 	35,000 stock options, vesting 25% per year beginning on the second
anniversary of grant date;

	 	b.	 	10,000 shares of time-based restricted stock, vesting 25% per year
beginning on second anniversary of grant date; and

	 	c.	 	If you are terminated by the Board without Cause within three (3)
years from the date of hire, 100% of your outstanding stock options will
immediately vest and become exercisable and vesting will accelerate on 50% of your
outstanding unvested restricted stock.

	8.	 	Vacation. You will be entitled to accrue up to four (4) weeks of paid vacation each year of
employment plus sick leave on the same basis as all other executives of the Company in
accordance with the terms and conditions of the vacation and sick leave policies of the
Company.

	9.	 	Perquisite Allowance. You will receive an annual perquisite allowance of $20,000 paid
quarterly for use in connection with customary perquisites, such as a leased automobile and
financial planning.

	10.	 	Business Expenses. You will be reimbursed for customary business expenses incurred in
connection with the performance of your duties and activities as CEO pursuant to the Company’s
established policies.

	11.	 	Relocation. You will be eligible for the standard Analogic relocation policy to assist your
move from California to Massachusetts, including:

	 	a.	 	Reasonable number of house hunting trips for you and your spouse;

	 	b.	 	Temporary housing while transitioning from California;

	 	c.	 	Reasonable transportation and shipping costs;

	 	d.	 	Closing costs and/or legal fees related to the sale of your current
home; and

	 	e.	 	Any imputed income will be grossed up for income tax purposes.

	12.	 	Benefits. You will be eligible to participate in the Company’s standard benefit program
generally applicable to similarly situated executives which includes medical, dental and life
insurance, short and long-term disability protection and participation the Company’s 401(k)
profit sharing plan, with the following enhancement:

	 	a.	 	If the medical options available under the current standard medical
program do not provide for specialist coverage comparable to your current program,
the Company will take efforts to secure appropriate coverage under an alternative
arrangement.

The full range of benefits for you and the family is summarized in the attached 2007 Employee
Benefits Summary. Note that the Company reserves the right to change or amend its benefit
plans it offers to employees at any time.

	13.	 	Change-In-Control. You will be eligible for the following Change-in-Control (CIC) benefits in
the event your employment is terminated without Cause within twenty-four (24) months following
a CIC:

	 	a.	 	Two (2) times your base salary plus greater of target or three (3)
year average bonus;

	 	b.	 	Pro-rata bonus, greater of target or actual to the extent
determinable, for year of termination;

	 	c.	 	Benefit continuation for twenty-four (24) months;

	 	d.	 	Equity acceleration; and

	 	e.	 	If excise taxes are imposed, you will be eligible for a modified
gross up only if over safe harbor by greater of $50,000 or 10%, otherwise best
after tax position of cut back or taxed with no cut back.

	14.	 	General Severance. You will also be eligible for the following severance benefits in the
event your employment is terminated by the Company without Cause and unrelated to a CIC

	 	a.	 	Twelve (12) months salary continuation plus a lump sum payment equal
to your target bonus

	 	b.	 	Equity treatment as described in Sections 6 and 7 above

	15.	 	Restrictive Covenants. Severance payments will be conditioned on your signing of a general
waiver and release of claims, and your agreement not to compete against the interests of the
Company, or solicit employees or customers for the severance period, and not disparage the
Company nor disclose trade secrets or confidential information.

	16.	 	Prior Agreements. You represent and warrant that you are not bound by any agreement with a
previous employer or other party that you would breach by accepting employment with the
Company or performing your duties as an employee of the Company. You further represent and
warrant that, in the performance of your duties with the Company, you will not utilize or
disclose any confidential information in breach of an agreement with a previous employer or
any other party.

	17.	 	Nature of Employment. Your employment with the Company is on an “at-will” basis, meaning
that either you or the Company may terminate the employment relationship at any time, for any
reason, with or without Cause and with or without notice, subject to the severance and
acceleration provisions described above. As used in this Agreement, “Cause” means (a) any
intentional, dishonest, illegal, or insubordinate conduct which is materially injurious to
Analogic or any of its subsidiaries or which results in an improper substantial personal
benefit, (b) breach of any provision of any employment, nondisclosure, non-competition, or
similar agreement to which you are a party or by which you are bound, (c) nonperformance or
gross dereliction of duty, (d) conviction of a felony, or (e) commission of an action
involving moral turpitude.

	18.	 	Final Agreement. This Agreement sets forth the terms of your service with the Company and
supersedes any prior representations or agreements, whether written or oral. This Agreement
shall be deemed to have been entered into and shall be construed and enforced in accordance
with the laws of the Commonwealth of Massachusetts.

As has been previously communicated to you, and due to the nature of some of the work at Analogic,
it would be necessary to pass a drug test for certain illicit substances, pass a background check,
which includes credit and court records, and I-9 proof of U.S. employment eligibility. Also you
should know that you will need to apply for a security clearance.

We hope that you find the aforementioned terms acceptable. Please confirm your agreement to accept
this position by signing and returning one copy of this letter to us by May 4, 2007.

Jim, we are confident that you will make a significant contribution to Analogic and will
successfully lead us in the future direction of the Company.

2

Thank you and we enthusiastically look forward to working with you in your new role at Analogic.

	 	 	Sincerely,

	 	 	Analogic Corporation

	 	 	/s/ Bruce W. Steinhauer

	 	 	Bruce W. Steinhauer

	 	 	Chairman, Nominating and Corporate Governance Committee

	 	 	Accepted and agreed to on this 1st day of May 2007.

	 	 	/s/ James Green

	 	 	Mr. James Green

3

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