Document:

exv10w1

Exhibit 10.1

Board of Directors

TBX Resources, Inc.

3030 LBJ Freeway, Suite 1320

Dallas, TX 75234

Gentlemen,

We are providing this letter to confirm our understanding of the terms and objectives of our
engagement to audit the consolidated balance sheet at November 30, 2007 and the related
consolidated statements of operations, stockholders’ equity and cash flows of TBX Resources, Inc.,
TBX Acquisition, Inc. and Grasslands L.L.P. (collectively hereafter referred to as “the Company”)
for the year then ended for the purpose of expressing an opinion on them.

The objective of our audit is the expression of an opinion about whether your consolidated
financial statements are fairly presented, in all material respects, in conformity with U.S.
generally accepted accounting principles. Our audit will be conducted in accordance with the
standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”) and will
include tests of your accounting records and other procedures we consider necessary to enable us
to express such an opinion. Our ability to express that opinion and the wording of our opinion
will, of course, be dependent on the facts and circumstances at the date of our report. If, for
any reason, we are unable to complete the audit or are unable to form or have not formed an
opinion, we may decline to express an opinion or to issue a report as a result of this engagement.
If circumstances preclude us from issuing an unqualified opinion, we will discuss the reasons with
you in advance.

An audit includes examining, on a test basis, evidences supporting the amounts and disclosures in
the consolidated financial statements. Accordingly, the areas and number of transactions selected
for testing will involve our professional judgment. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall consolidated financial statement presentation. Our procedures will include, where
applicable, tests of documentary evidence supporting the transactions recorded in the accounts,
tests of the physical existence of inventory, and direct confirmation of receivables and certain
other assets and liabilities by correspondence with selected customers, creditors, legal counsel,
and financial institutions.

Turner, Stone & Company, L.L.P.

Accountants and Consultants

12700 Park Central Drive” Suite 1400

Dallas, Texas 75251

Telephone: 972-2.39-1660 / Facsimile: 972-239-1665

Toll Free; 877-853-4195

Web site: turnerstone.com

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Two

In order to expedite the completion of our audit and to keep audit costs at a minimum, we
understand you will assign Company personnel to assist us by performing certain duties; including
locating, removing from, and returning to the files the checks, invoices, deposits and other
documentation required to be examined by us; completing from Company records the financial
information on audit work papers to be furnished by us; typing confirmation requests; and searching
the Company records for explanation of exceptions or differences arising from our procedures. We
may also request written representations from your attorneys as part of our audit and they may bill
you for responding to this inquiry. At the conclusion of our audit, we will require certain written
representations from the appropriate level of management about the consolidated financial
statements and related matters.

We are responsible for conducting the audit in accordance with the standards of the PCAOB. Those
standards require that we obtain reasonable rather than absolute assurance about whether the
financial statements are tree of material misstatement, whether caused by errors, fraud, or
violations of laws or governmental regulations that are attributable to the Company or to acts by
management or employees acting on behalf of the Company. However, because of the characteristics
of fraud, particularly those involving collusion, concealment and falsified documentation
(including forgery), a properly planned and performed audit may not detect a material
misstatement. Our procedures will also include gathering information necessary to identify risks
of material misstatement due to fraud, evaluating the Company’s programs and controls that address
the identified risks of material misstatement due to fraud, and assessing the risks taking into
account this evaluation. We are also required to consider whether identified misstatements may be
indicative of fraud and, if so, we are required to evaluate their implication. Any fraud, whether
or not material, that involves management or other employees who have a significant role in the
Company’s internal controls and procedures for financial reporting should be disclosed to us.

Because an audit conducted in accordance with the standards of the PCAOB is designed to provide
reasonable, but not absolute. assurance and because we will not perform a detailed
examination of all transactions, there is the risk that material misstatements may exist and not
be detected by us. In addition, an audit is not designed to detect immaterial misstatements or
violations of laws or governmental regulations that do not have a material and direct effect on
the financial statements. However, we will inform the appropriate level of management of any
material errors, fraudulent financial reporting or misappropriation of assets, or violations of
laws or governmental regulations that come to our attention, unless clearly inconsequential. Our
responsibility as auditors is limited to the period covered by our audit and does not extend to
any later periods for which we are not engaged as auditors.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Three

Additionally, an audit includes obtaining an understanding of internal control sufficient to plan
the audit and to determine the nature, timing, and extent of audit procedures to be performed. An
audit is not designed to provide assurance on internal control or to identify reportable
conditions, that is, significant deficiencies in the design or operation of internal control.
However, we are responsible for communicating to the appropriate level of management any
reportable conditions which come to our attention.

While our audit will be conducted with due regard to the rules and regulations of the Securities
and Exchange Commission (SEC) relative to matters of accounting, it should be understood that our
report and the consolidated financial statements and schedules, if any, are subject to review by
the SEC and to its interpretation of the applicable rules and regulations.

The Private Securities Litigation Reform Act of 1995 (the Act) imposes additional responsibilities
on SEC registrants, their management, audit committees and boards of directors, as well as
independent auditors regarding the reporting of illegal acts that have or may have occurred.
During the course of our audit, we will ask you specific representations about this. To fulfill
our responsibilities under the Act, we may need to consult with your attorney or an attorney of
our choosing about any such illegal acts that we become aware of Additional fees, including legal
fees if any, are your responsibility and will be billed to you. In this regard, you agree to
cooperate with any procedures that we may deem necessary to perform.

Management’s Responsibility 

The consolidated financial statements are the responsibility of the Company’s management.
Encompassed within that responsibility is the establishment and maintenance of effective internal
controls over financial reporting, the establishment and maintenance of proper records, the
selection of appropriate accounting principles, the safeguarding of assets, and compliance with
relevant laws and regulations. In addition, management is responsible for adjusting the
consolidated financial statements to correct material misstatements and for affirming to us in the
representation letter that the effects of any uncorrected misstatements aggregated by us during
the audit and pertaining to the latest period presented are immaterial, both individually and in
the aggregate, to the consolidated financial statements taken as a whole.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Four

Management is also responsible for making all financial records and related information available
to us and for the accuracy and completeness of that information. We will advise you about
appropriate accounting principles and their application and will assist in the preparation of your
consolidated financial statements, but the responsibility for the consolidated financial
statements remains with you, including the overall accuracy of the consolidated financial
statements and their conformity with U.S. generally accepted accounting principles. This
responsibility includes the establishment and maintenance of adequate records and effective
internal controls over financial reporting, the selection and application of accounting
principles, properly recording transactions in the accounting records, making appropriate
estimates, the safeguarding of assets and identifying and ensuring the Company complies with the
laws and regulations applicable to its business activities.

As part of our engagement we may propose standard, adjusting, or correcting journal entries to
your consolidated financial statements. You are responsible for reviewing the entries and
understanding the nature of any proposed entries and the impact they have on your financial
statements. Further, you are responsible for designating a qualified management-level individual
to be responsible and accountable for overseeing these services.

Management is responsible for ensuring and management represents to us that before audit fieldwork
begins, the Company will appropriately reconcile its general ledger accounts to their related
supporting information. All related reconciling items considered to be material, individually and
in the aggregate, will be identified and included on the reconciliations and will be appropriately
adjusted in the financial statements. If not adjusted in the financial statements, which may not
be feasible in all cases, management will, at the very least, identify and report to us at or
before the beginning of fieldwork any adjustments yet to be made.

Management is also responsible for ensuring and management further represents to us that the
unaudited interim financial information has been prepared and presented in conformity with
accounting principles generally accepted in the United States of America applicable to interim
financial information and with Item 302(a) of Regulation S-K and has been prepared on a basis
consistent with prior interim periods and years.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Five

Establishing and maintaining a sound system of internal control is the best means of preventing or
detecting errors, fraudulent financial reporting and misappropriation of assets. Therefore, you are
responsible for the design and implementation of programs and controls to prevent and detect fraud,
and informing us about all known or suspected fraud affecting the Company involving (a) management,
(b) employees who have significant roles in internal control, and (c) others where the fraud could
have a material effect on the consolidated financial statements. All significant deficiencies and
material weaknesses in the design or operations of internal controls and procedures for financial
reporting, including any corrective actions, which could affect the Company’s ability to record,
process, summarize and report financial information are required to be disclosed to us. You are
also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud
affecting the Company received in communications from employees, former employees, regulators, or
others.

As stated above, we will require various written representations from management including, but not
limited to, management’s responsibility for the design and implementation of programs and controls
to prevent and detect fraud, including management’s knowledge of fraud, suspected fraud or
allegations of fraud affecting the Company. Furthermore, additional representations will be
required regarding management’s responsibility to establish and maintain adequate internal controls
and procedures for financial reporting as well as management’s conclusions about the effectiveness
of the Company’s internal controls and procedures, including any significant changes in the
Company’s internal controls and procedures for financial reporting or in other factors that could
significantly affect internal controls and procedures relating to financial reporting. We will also
request various other representations determined by the nature of our audit and the unique
characteristics of the Company’s business operations and financial activities. These written
representations, which are required by the PCAOB, are part of the audit evidence that we will rely
on in forming our opinion on the Company’s consolidated financial statements.

Management is also responsible for the preparation of Management’s Discussion and Analysis (MD&A)
prepared pursuant to the rules and regulations of the SEC, which is presented in annual reports to
stockholders, quarterly interim filings and in other documents. These rules require management to
interpret the criteria, accurately derive the historical amounts from the Company’s accounting
records, make determinations as to the relevancy of information to be included, and make estimates
and assumptions that affect reported information.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Six

If the Company intends to publish or otherwise reproduce in any document our report on the
Company’s consolidated financial statements, or otherwise make reference to our firm in a document
that contains other information in addition to the audited financial statements (e.g. in a debt or
equity offering circular or in a private placement memorandum), the Company agrees that, prior to
making any such use of our report or reference to our firm, the Company’s management will provide
us with a draft of the document to read and obtain our approval for the inclusion or incorporation
by reference of our report, or the reference to our firm, in such document before the
document is printed and distributed. Accordingly, to avoid unnecessary delay or misunderstanding,
it is important that you give us timely notice of your intention to issue any such document.

When applicable, with respect to the electronic dissemination of audited consolidated financial
statements, including consolidated financial statements published electronically on the Company’s
internet website, the Company understands that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites
or to consider the consistency of other information in the electronic site with the original
document.

Our reports should not be included in the SEC’s EDGAR electronic filing system until you have
received a manually signed report from us. The inclusion or incorporation by reference of
our report in any such document would constitute the reissuance of our report and any request by
the Company to reissue our report or to consent to its inclusion or incorporation by reference in
any such document will be considered based on the facts and circumstances existing at the time of
such request.

Additionally, when applicable, the Company agrees to inform us of its intent to use our report in
a registration statement filed under the Securities Act of 1933 or the Securities Exchange Act of
1934. In this regard, the Company agrees to provide us a complete copy of every deficiency
(comment) letter received from the SEC. The complete letter should be sent to us immediately so
that we may determine the extent to which the SEC’s comments concern, directly or indirectly, the
consolidated financial statements. This requirement not only pertains to comments related to
filings under the Securities Act of 1933 but also to filings under the Securities Exchange Act of
1934 such as proxy statements, Form 10-K(SB), Form 10-Q(SB), Form 8-K and Form 10 filings. To
facilitate this process, please coordinate with Company counsel to forward all copies of such
letters to us.

Furthermore, the Company should not make any public filing of information in the SEC’s EDGAR
electronic filing system or through press releases until we have had the opportunity to review and
approve such filing or press release.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Seven

Other Communications Arising from the Audit 

As required by the PCAOB, we will report directly to the Audit Committee/Board of Directors any
fraud of which we become aware that involves senior management and any fraud that causes a material
misstatement of the consolidated financial statements. We will also report to senior management any
fraud perpetrated by lower level employees of which we become aware that does not cause a material
misstatement of the consolidated financial statements. In addition, we will communicate certain
other matters required by professional standards related to the conduct of our audit and your
financial reporting process.

We will inform the appropriate level of management and the Audit Committee/Board of Directors of
illegal acts that have been detected or have otherwise come to our attention in the course of our
audit, unless the illegal act is clearly inconsequential.

We will also report directly to Company management and the Audit Committee/Board of Directors
matters coming to our attention during the course of our audit that we believe are significant
deficiencies or material weaknesses. A deficiency, or a combination of deficiencies, in internal
control over financial reporting that is less severe than a material weakness, yet important
enough to merit attention by those responsible for oversight of the registrant’s financial
reporting. A material weakness is a significant deficiency, or combination of significant
deficiencies, that results in more than a remote likelihood that a material misstatement of the
consolidated financial statements will not be prevented or detected.

We may also have other comments for management relating to matters that we observe, possible ways
to improve the efficiency of the Company’s operations or other recommendations concerning internal
controls. These matters will be discussed with the level of management responsible for the matters
and, if significant, we will also communicate them to senior management and/or the Audit
Committee/Board of Directors.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Eight

Fees and Payments 

Our fee for this audit will be at our standard rates for the level of work and professional staff
involved, for the time required to complete the engagement in the highest professional manner,
plus out-of-pocket costs. Our statements will be rendered monthly as work progresses and at the
completion of the audit and are payable upon presentation. They are considered past due after 30
days and a finance charge not to exceed the maximum lawful rate will be added to all past due
balances. In accordance with our firm policies, work may be suspended if your account balance
becomes forty-five (45) days or more overdue and will not be resumed until your account is brought
current. If we elect to terminate our services for nonpayment, our engagement will be deemed
completed at the time you are notified, even if we have not issued our report, and you agree to be
obligated to compensate us for the time expended and any out of pocket costs incurred through the
date of termination.

Based upon our preliminary planning and discussions, we estimate our fee for this audit will range
between $35,000 and $39,000, plus out of pocket costs. An initial retainer of $10,000 is required
for us to begin our field work. This estimate assumes we will receive the aforementioned
assistance and cooperation from your personnel and that we will not encounter unexpected
circumstances. We will notify you immediately if changing circumstances or other unforeseen
factors require us to change our estimate by more than 10%.

The Company is also required to have interim financial reports filed on Form 10-Q or Form 10QSB
reviewed by us prior to filing. The SEC does not require an audit of the interim financials, but
it does require independent auditors to follow the Statement of Auditing Standards No. 100,
“Interim Financial Information,” procedures for conducting the interim quarterly review. The SEC
considers it a clear violation of the securities laws for a company to file a quarterly report
without having its auditor perform the review of the interim information in advance of the
filing. A review report generally is not and wi11 not be issued in conjunction with our quarterly
review procedures because it is not required by the SEC to be included in your quarterly filings.
However, if you request such a report, we will be happy to provide one to you. We estimate our fee
for each quarterly review will approximate $2,000, which is not included in the above estimated
audit fee.

The provisions of this engagement letter relating to our review of the Company’s Form 10-Q or Form
10-QSB will also apply to any interim quarter subsequent to the year-end date covered in this
engagement letter until the execution of a subsequent engagement letter.

It is anticipated that the PCAOB will require us to perform some procedures on the Section 404
compliance portions for the year ended November 30, 2007. However, at this time, no guidance has
been issued. The above fee estimate does not include any work related to this matter.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Nine

Timing: and Completion of Audit Work 

We plan to perform our work according to the timetables you will provide us and complete our audit
within two weeks of receiving all requested information. Once we have mutually agreed to an
acceptable timetable for fieldwork, it is extremely important that the Company’s management and
staff be ready and available for us to efficiently and effectively proceed through audit
fieldwork. Accordingly, it is important that you have the information we have requested assembled
and available by the beginning of our field work (or earlier for audit planning purposes if
specifically arranged with you). It is also important that your personnel assigned to assisting us
promptly devote attention of our inquiries and requests for documentation to insure we do not
encounter any undue delays. Should this not be the case, then our work in connection with the
audit of the Company’s consolidated financial statements may be delayed due to scheduling
conflicts with other engagements. In such cases, we cannot be held responsible for missed filing
deadlines. Delays in the performance of our audit, which would cause us to be unable to meet these
timetables, will be brought to your attention immediately.

We plan to conduct certain tests of transactions and other audit procedures during December 2007
and January 2008 and complete our audit by January 31, 2008 and complete our audit within two
weeks of receiving all requested information.

 

 

Board of Directors

TBX Resources, Inc.

September 19, 2007

Page Ten

Document Retention Policy 

It is not our practice or policy to retain work papers, emails, notes or data files that have
been updated or superseded, unless shared with you or a third party working with you. However, if
you wish us to follow a retention practice that differs from the above, please indicate your
specific request(s) in writing when returning a copy of this engagement letter. In addition, a
complete copy of our document retention policy is available upon request.

If the terms of the engagement set forth above are acceptable to you and in accordance with your
understanding, please sign and return one copy of this letter to us. We appreciate the
opportunity to be of service to you and we look forward to working with you.

Very truly yours,

Turner Stone & Company, LLP

Certified Public Accountants

Approved:

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ Tim Burroughs
 	 
	 	 	 	 
	 	Date:exv10w1

Exhibit 10.1

	 	 	 
	

	 	100 Pine Street, Suite 900, San Francisco, CA 94111

Phone: 415.490.2300 Fax: 415.837.1684

www.alvarezandmarsal.com

October 11, 2008

Stewart M. Landefeld

Executive Vice President

Washington Mutual, Inc.

1301 Second Avenue

Seattle, WA, 98101

Dear Mr. Landefeld:

This letter confirms and sets forth the terms and conditions of the engagement between
Alvarez & Marsal North America, LLC (“A&M”) and Washington Mutual, Inc. and subsidiaries
(collectively the “Company”), including the scope of the services to be performed and the
basis of compensation for those services. Upon execution of this letter by each of the
parties below and receipt of the retainer described below, this letter will constitute an
agreement between the Company and A&M.

	 	1.	 	Description of Services

	 	a.	 	Officers. In connection with this engagement,
A&M shall make
available to the Company:

	 	(i)	 	William Kosturos to serve as the Chief
Restructuring Officer (the “CRO”); and
	 
	 	(ii)	 	Upon the mutual agreement of A&M and
the Board of Directors of the Company (the “Board”), such
additional personnel as are necessary to assist in the
performance of the duties set forth in clause 1.b below (the
“Additional Personnel”). Such Additional Personnel shall be
designated by the Company as executive officers.

	 	b.	 	Duties.

	 	(i)	 	The CRO together with any Additional
Personnel shall perform a financial review of the Company,
including but not limited to a review and assessment of
financial

 

 

Washington Mutual,
Inc.
 October 6, 2008

Page 2

	 	 	 	information that has been, and that will be, provided by the
Company to its creditors, including without limitation its short
and long-term projected cash flows;
	 
	 	(iii)	 	The CRO and Additional Personnel shall
assist in developing for the Board’s review possible restructuring
plans or strategic alternatives for maximizing the enterprise value
of the Company’s various business lines;
	 
	 	(iv)	 	The CRO shall serve as the principal contact
with the Company’s creditors with respect to the Company’s financial
and operational matters; and
	 
	 	(v)	 	The CRO and Additional Personnel shall
perform such other services as requested or directed by the Board and
agreed to by such officer.

	 	c.	 	Reporting. The CRO shall report to the Board and
Additional
Personnel will report to the CRO until a successor CEO or other
executive officer function as CEO or other title with direct board
responsibility for the Chapter 11 is appointed. Upon the
appointment of a CEO or other board officer, the CRO shall report
to the CEO or other board officer and the Board.
	 
	 	d.	 	Employment by A&M. The CRO and Additional Personnel
will
continue to be employed by A&M and while rendering services to
the Company will continue to work with other personnel at A&M
in connection with other unrelated matters, which will not unduly
interfere with services pursuant to this engagement. With respect
to the Company, however, the CRO and Additional Personnel shall
operate under the direction of the Board and A&M shall have no
liability to the Company for any acts or omissions of such officers.
	 
	 	e.	 	Projections; Reliance; Limitation of Duties. You
understand that
the services to be rendered by the CRO and Additional Personnel
may include the preparation of projections and other forward-looking statements, and that numerous factors can affect the actual
results of the Company’s operations, which may materially and
adversely differ from those projections and other forward-looking
statements. In addition, the CRO and Additional Personnel will be
relying on information provided by other members of the
Company’s management in the preparation of those projections
and other forward-looking statements. Neither the CRO,
Additional Personnel nor A&M makes any representation or
guarantee that an appropriate restructuring proposal or strategic
alternative can be formulated for the Company, that any

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Washington Mutual, Inc.

October 6, 2008

Page 3

	 	 	 	restructuring proposal or strategic alternative presented to the Board will
be more successful than all other possible restructuring proposals or
strategic alternatives, that restructuring is the best course of action for
the Company or, if formulated, that any proposed restructuring plan or
strategic alternative will be accepted by any of the Company’s creditors,
shareholders and other constituents. Further, neither the CRO, Additional
Personnel nor A&M assumes responsibility for the selection of any
restructuring proposal or strategic alternative that any such officer
assists in formulating and presenting to the Board, and the CRO and
Additional Personnel shall be responsible for implementation only of the
proposal or alternative approved by the Board and only to the extent and in
the manner authorized and directed by the Board.

	 	f.	 	Additional Responsibilities. Upon
the mutual agreement of the
Company and A&M, A&M may provide such additional
personnel as the Company may request to assist in performing
the services described above and such other services as may be
agreed to, on such terms and conditions and for such
compensation as the Company and A&M shall agree.
	 
	 	g.	 	In connection with the services to be
provided hereunder, from
time to time A&M may utilize the services of employees of its
affiliates. Such affiliates are wholly owned by A&M’s parent
company and employees.

	 	2.	 	Compensation

	 	a.	 	A&M will be paid by the Company for the services of the CRO
and any Additional Personnel at the following hourly billing rates. The
hourly billing rate for the CRO is $695. The current hourly billing rates for
other A&M personnel, based on the position held by such A&M personnel in A&M,
are:

	 	 	 	 	 
	i. Managing Director
	 	$	550 - $750	 
	ii. Directors
	 	$	450 - $550	 
	iii. Associates
	 	$	300 - $450	 
	iv. Analysts
	 	$	175 - $300	 

	 	 	 	Such rates shall be subject to adjustment annually at such time as A&M
adjusts its rates generally.

	 	b.	 	In addition, A&M will be reimbursed by the Company for the
reasonable out-of-pocket expenses of the CRO and any Additional Personnel,
and if applicable, other A&M personnel, incurred in

-3-

 

Washington Mutual,
Inc.
 October 6, 2008

Page 4

	 	 	 	connection with this assignment, such as travel, lodging, duplications,
computer research, messenger and telephone charges. In addition, A&M shall
be reimbursed by the Company for the reasonable fees and expenses of its
counsel incurred in connection with the preparation, negotiation, and
approval of this Agreement. All fees and expenses due to A&M will be
billed on a monthly basis or, at A&M’s discretion, more frequently.
	 
	 	c.	 	The Company shall promptly remit to A&M a retainer in
the amount of $250,000, which shall be credited against any amounts due at the
termination of this engagement and returned upon the satisfaction of all
obligations hereunder.

	 	3.	 	Term
	 
	 	 	 	The engagement will commence as of the date hereof and may be terminated by either
party without cause by giving 30 days’ written notice to the other party during
which notice period A&M will cooperate with the Company to facilitate an orderly
transfer of duties to Company personnel. A&M normally does not withdraw from an
engagement unless the Company misrepresents or fails to disclose material facts,
fails to pay fees or expenses, or makes it unethical or unreasonably difficult for
A&M to continue to represent the Company, or unless other just cause exists. In the
event of any such termination, any fees and expenses due to A&M shall be remitted
promptly (including fees and expenses that accrued prior to but were invoiced
subsequent to such termination). The Company may immediately terminate A&M’s
services hereunder at any time for Cause by giving written notice to A&M. Upon any
such termination, the Company shall be relieved of all of its payment obligations
under this Agreement, except for the payment of fees and expenses through the
effective date of termination (including fees and expenses that accrued prior to
but were invoiced subsequent to such termination) and its obligations under
paragraphs 7 and 8. For purposes of this Agreement, “Cause” shall mean if (i) the
CRO or any of the Additional Personnel is convicted of, admits guilt in a written
document filed with a court of competent jurisdiction to, or enters a plea of nolo
contendere to, an allegation of fraud, embezzlement, misappropriation or any
felony; (ii) the CRO or any of the Additional Personnel willfully disobeys a lawful
direction of the Board, CEO or responsible executive; or (iii) a material breach of
any of A&M’s or the CRO’s or any of the Additional Personnel’s material obligations
under this Agreement which is not cured within 30 days of the Company’s written
notice thereof to A&M describing in reasonable detail the nature of the alleged
breach. For purposes of this Agreement, termination for “Good Reason” shall mean
either its resignation caused by a breach by the Company of any of its

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Washington Mutual, Inc.

October 6, 2008

Page 5

	 	 	 	material obligations under this Agreement that is not cured within 30 days of A&M
having given written notice of such breach to the Company describing in reasonable
detail the nature of the alleged breach.
	 
	 	4.	 	No Audit, Duty to Update.
	 
	 	 	 	It is understood that the CRO, any Additional Personnel and A&M are not being
requested to perform an audit, review or compilation, or any other type of
financial statement reporting engagement that is subject to the rules of the AICPA,
SEC or other state or national professional or regulatory body. They are entitled
to rely on the accuracy and validity of the data disclosed to them or supplied to
them by employees and representatives of the Company. The CRO, any Additional
Personnel and A&M are under no obligation to update data submitted to them or
review any other areas unless specifically requested by the Board to do so.
	 
	 	5.	 	No Third Party Beneficiary.
	 
	 	 	 	The Company acknowledges that all advice (written or oral) given by A&M to the
Company in connection with this engagement is intended solely for the benefit and
use of the Company (limited to its Board and management) in considering the
matters to which this engagement relates. The Company agrees that no such advice
shall be used for any other purpose or reproduced, disseminated (other than to its
advisers and accountants), quoted or referred to at any time in any manner or for
any purpose other than accomplishing the tasks referred to herein without A&M’s
prior approval (which shall not be unreasonably withheld), except as required by
law.
	 
	 	6.	 	Conflicts.
	 
	 	 	 	A&M is not currently aware of any relationship that would create a conflict of
interest with the Company. Because A&M is a consulting firm that serves clients on
an international basis in numerous cases, both in and out of court, it is possible
that A&M may have rendered or will render services to or have business associations
with other entities or people which had or have or may have relationships with the
Company, including creditors of the Company. In the event you accept the terms of
this engagement, A&M will not represent, and A&M has not represented, the interests
of any such entities or people in connection with this matter. Each of the
Companies acknowledges and agrees that the services being provided hereunder are
being provided on behalf of each of them and each of them hereby waives any and all
conflicts of interest that may arise on

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Washington Mutual, Inc.

October 6, 2008

Page 6

	 	 	 	account of the services being provided on behalf of any other Company. Each
Company represents that it has taken all corporate action necessary and is
authorized to waive such potential conflicts of interest.
	 
	 	7.	 	Confidentiality / Non-Solicitation.
	 
	 	 	 	The CRO, Additional Personnel, A&M and its affiliates’ employees and agents shall
keep as confidential all non-public information received from the Company in
conjunction with this engagement, except (i) as requested by the Company or its
legal counsel; (ii) as required by legal proceedings (provided that the Company be
given sufficient notice and an opportunity to intervene on its own behalf) or (iii)
as reasonably required in the performance of this engagement. All obligations as to
non-disclosure shall cease as to any part of such information to the extent that
such information is or becomes public other than as a result of a breach of this
provision. Except as specifically provided for in this letter, the Company on
behalf of itself and its subsidiaries and affiliates and any person which may
acquire all or substantially all of its assets agrees that, until two (2) years
subsequent to the termination of this engagement, it will not solicit, recruit,
hire or otherwise engage any employee of A&M who worked on this engagement while
employed by A&M (“Solicited Person”). Should the Company or any of its subsidiaries
or any person who acquires all or substantially all of its assets extend an offer
of employment to or otherwise engage any Solicited Person and should such offer be
accepted, A&M shall be entitled to a fee from the party extending such offer equal
to the Solicited Person’s hourly client billing rate at the time of the offer
multiplied by 4,000 hours for a Managing Director, 3,000 hours for a Senior
Director and 2,000 hours for any other A&M employee. The fee shall be payable at
the time of the Solicited Person’s acceptance of employment or engagement.
	 
	 	8.	 	Indemnification.
	 
	 	 	 	The Company shall indemnify the CRO and all Additional Personnel to the same
extent as the most favorable indemnification it extends to its officers or
directors, whether under the Company’s bylaws, its certificate of incorporation,
by contract or otherwise, and no reduction or termination in any of the benefits
provided under any such indemnities shall affect the benefits provided to the CRO
or Additional Personnel. The CRO and each Additional Personnel shall be covered as
an officer under the Company’s existing director and officer liability insurance
policy to the extent allowed under such policy. As a condition of A&M accepting
this engagement, a Certificate of Insurance evidencing such coverage shall be
furnished to A&M prior to the effective date of this Agreement. To the

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Washington Mutual, Inc.

October 6, 2008

Page 7

	 	 	 	extent practicable, the Company shall give thirty (30) days’ prior written notice
to A&M of cancellation, non-renewal, or material change in coverage, scope, or
amount of such director and officer liability policy. The Company shall also
maintain such insurance coverage for the CRO, CFO, Treasurer and each Additional
Personnel for a period of not less than two years following the date of the
termination of such officer’s services hereunder. The provisions of this section 8
are in the nature of contractual obligations and no change in applicable law or the
Company’s charter, bylaws or other organizational documents or policies shall
affect the CRO’s or any Additional Personnel’s rights hereunder. The attached
indemnity provisions are incorporated herein and the termination of this agreement
or the engagement shall not affect those provisions, which shall survive
termination.
	 
	 	9.	 	Miscellaneous.
	 
	 	 	 	This Agreement shall (together with the attached indemnity provisions) be: (a)
governed and construed in accordance with the laws of the State of New York,
regardless of the laws that might otherwise govern under applicable principles of
conflict of laws thereof; (b) incorporates the entire understanding of the parties
with respect to the subject matter thereof; and (c) may not be amended or modified
except in writing executed by each of the signatories hereto. The Company and A&M
agree to waive trial by jury in any action, proceeding or counterclaim brought by
or on behalf of the parties hereto with respect to any matter relating to or
arising out of the performance or non-performance of the Company or A&M hereunder.
The Company and A&M agree that the Bankruptcy Court having jurisdiction over the
Company’s Chapter 11 case (or any case into which it may be converted) shall have
exclusive jurisdiction over any and all matters arising under or in connection
with their obligations hereunder. Notwithstanding anything herein to the contrary,
A&M may reference or list the Company’s name and/or a general description of the
services in A&M’s marketing materials, including, without limitation, on A&M’s
website upon the termination of the engagement for any reason other than Cause.

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Washington Mutual, Inc.

October 6, 2008

Page 8

	 	 	 	If the foregoing is acceptable to you, kindly sign the enclosed copy to acknowledge
your agreement with its terms.

	 	 	 	 	 
	 	Very truly yours,

Alvarez & Marsal North America, LLC

 	 
	 	By:  	/s/ William C. Kosturos
 	 
	 	 	William C. Kosturos  	 
	 	 	Managing Director 	 
	 

	 	 	 	 	 	 	 
	 	 	Accepted and Agreed:	 	 
	 
	 	 	 	 	 	 
	 	 	Washington Mutual, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stewart M. Landefeld
 

Stewart M. Landefeld
	 	 
	 

	 	 	 	Executive Vice President	 	 

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INDEMNIFICATION AGREEMENT

This indemnity is made part of an agreement, dated October 6, 2008 (which together with any
renewals, modifications or extensions thereof, is herein referred to as the “Agreement”) by and
between Alvarez & Marsal North America, LLC (“A&M”) and Washington Mutual, Inc (the “Company”), for
services to be rendered to the Company by A&M.

A. The Company agrees to indemnify and hold harmless each of A&M, its affiliates and
their respective shareholders, members, managers, employees, agents, representatives and
subcontractors (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) against
any and all losses, claims, damages, liabilities, penalties, obligations and expenses, including
the
costs for counsel or others (including employees of A&M, based on their then current hourly
billing rates) in investigating, preparing or defending any action or claim, whether or not in
connection with litigation in which any Indemnified Party is a party, or enforcing the Agreement
(including these indemnity provisions), as and when incurred, caused by, relating to, based upon
or arising out of (directly or indirectly) the Indemnified Parties’ acceptance of or the
performance
or nonperformance of their obligations under the Agreement; provided, however, such indemnity
shall not apply to any such loss, claim, damage, liability or expense to the extent it is found in
a
final judgment by a court of competent jurisdiction (not subject to further appeal) to have
resulted primarily and directly from such Indemnified Party’s gross negligence or willful
misconduct. The Company also agrees that no Indemnified Party shall have any liability
(whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection
with the engagement of A&M, except to the extent that any such liability for losses, claims,
damages, liabilities or expenses are found in a final judgment by a court of competent
jurisdiction (not subject to further appeal) to have resulted primarily and directly from such
Indemnified Party’s gross negligence or willful misconduct. The Company further agrees that it
will not, without the prior consent of an Indemnified Party, settle or compromise or consent to
the entry of any judgment in any pending or threatened claim, action, suit or proceeding in
respect of which such Indemnified Party seeks indemnification hereunder unless such settlement,
compromise or consent includes an unconditional release of such Indemnified Party from all
liabilities arising out of such claim, action, suit or proceeding.

B. These indemnification provisions shall be in addition to any liability which the Company
may otherwise have to the Indemnified Parties. In the event that, at any time whether before or
after termination of the engagement or the Agreement, as a result of or in connection with the
Agreement or A&M’s and its personnel’s role under the Agreement, A&M or any Indemnified
Party is required to produce any of its personnel (including former employees) for examination,
deposition or other written, recorded or oral presentation, or A&M or any of its personnel
(including former employees) or any other Indemnified Party is required to produce or otherwise
review, compile, submit, duplicate, search for, organize or report on any material within such
Indemnified Party’s possession or control pursuant to a subpoena or other legal (including
administrative) process, the Company will reimburse the Indemnified Party for its out of pocket
expenses, including the reasonable fees and expenses of its counsel, and will compensate the

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Indemnified Party for the time expended by its personnel based on such personnel’s then current
hourly rate.

C. If any action, proceeding or investigation is commenced to which any Indemnified Party
proposes to demand indemnification hereunder, such Indemnified Party will notify the Company
with reasonable promptness; provided, however, that any failure by such Indemnified Party to
notify the Company will not relieve the Company from its obligations hereunder, except to the
extent that such failure shall have actually prejudiced the defense of such action. The Company
shall promptly pay expenses reasonably incurred by any Indemnified Party in defending,
participating in, or settling any action, proceeding or investigation in which such Indemnified
Party is a party or is threatened to be made a party or otherwise is participating in by reason of
the engagement under the Agreement, upon submission of invoices therefor, whether in advance
of the final disposition of such action, proceeding, or investigation or otherwise. Each
Indemnified Party hereby undertakes, and the Company hereby accepts its undertaking, to repay
any and all such amounts so advanced if it shall ultimately be determined that such Indemnified
Party is not entitled to be indemnified therefor. If any such action, proceeding or investigation
in
which an Indemnified Party is a party is also against the Company, the Company may, in lieu of
advancing the expenses of separate counsel for such Indemnified Party, provide such
Indemnified Party with legal representation by the same counsel who represents the Company,
provided such counsel is reasonably satisfactory to such Indemnified Party, at no cost to such
Indemnified Party; provided, however, that if such counsel or counsel to the Indemnified Party
shall determine that due to the existence of actual or potential conflicts of interest between such
Indemnified Party and the Company such counsel is unable to represent both the Indemnified
Party and the Company, then the Indemnified Party shall be entitled to use separate counsel of its
own choice, and the Company shall promptly advance its reasonable expenses of such separate
counsel upon submission of invoices therefor. Nothing herein shall prevent an Indemnified Party
from using separate counsel of its own choice at its own expense. The Company will be liable
for any settlement of any claim against an Indemnified Party made with the Company’s written
consent, which consent shall not be unreasonably withheld.

D. In order to provide for just and equitable contribution if a claim for indemnification
pursuant to these indemnification provisions is made but it is found in a final judgment by a
court of competent jurisdiction (not subject to further appeal) that such indemnification may not
be enforced in such case, even though the express provisions hereof provide for indemnification,
then the relative fault of the Company, on the one hand, and the Indemnified Parties, on the other
hand, in connection with the statements, acts or omissions which resulted in the losses, claims,
damages, liabilities and costs giving rise to the indemnification claim and other relevant
equitable considerations shall be considered; and further provided that in no event will the
Indemnified Parties’ aggregate contribution for all losses, claims, damages, liabilities and
expenses with respect to which contribution is available hereunder exceed the amount of fees
actually received by the Indemnified Parties pursuant to the Agreement. No person found liable
for a fraudulent misrepresentation shall be entitled to contribution hereunder from any person
who is not also found liable for such fraudulent misrepresentation.

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E. In the event the Company and A&M seek judicial approval for the assumption of the
Agreement or authorization to enter into a new engagement agreement pursuant to either of
which A&M would continue to be engaged by the Company, the Company shall promptly pay
expenses reasonably incurred by the Indemnified Parties, including attorneys’ fees and expenses,
in connection with any motion, action or claim made either in support of or in opposition to any
such retention or authorization, whether in advance of or following any judicial disposition of
such motion, action or claim, promptly upon submission of invoices therefor and regardless of
whether such retention or authorization is approved by any court. The Company will also
promptly pay the Indemnified Parties for any expenses reasonably incurred by them, including
attorneys’ fees and expenses, in seeking payment of all amounts owed it under the Agreement (or
any new engagement agreement) whether through submission of a fee application or in any other
manner, without offset, recoupment or counterclaim, whether as a secured claim, an
administrative expense claim, an unsecured claim, a prepetition claim or a postpetition claim.

F. Neither termination of the Agreement nor termination of A&M’s engagement nor the
filing of a petition under Chapter 7 or 11 of the United States Bankruptcy Code (nor the
conversion of an existing case to one under a different chapter) shall affect these
indemnification
provisions, which shall hereafter remain operative and in full force and effect.

G. The rights provided herein shall not be deemed exclusive of any other rights to which the
Indemnified Parties may be entitled under the certificate of incorporation or bylaws of the
Company, any other agreements, any vote of stockholders or disinterested directors of the
Company, any applicable law or otherwise.

	 	 	 	 	 	 	 	 	 
	WASHINGTON MUTUAL, INC.	 	ALVAREZ & MARSAL
NORTH AMERICA, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Stewart M. Landefeld	 	By:
	 	/s/ William C. Kosturos	 	 
	 

	 	 	 	 	 	 

	 	 

-3-

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