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SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE

This Settlement Agreement and Mutual General Release (“Agreement”) is entered
into as of this 23rd day of January, 2008 (hereinafter "Settlement Date") by and
among the following settling parties ("Settling Parties"):

 
1.
Plaintiff AMERIWEST ENERGY CORP. fka SOUTH SEA ENERGY CORP. fka HENLEY VENTURES,
INC. and any and all parents, subsidiaries, affiliates, officers, directors,
owners, shareholders, divisions, employees, predecessor corporations, successor
corporations, related corporations employees, agents, administrators, attorneys,
insurance carriers, reinsurance carriers, partners, joint venturers, dba’s,
associates, trustees, beneficiaries, executors, heirs, and each of them, jointly
and severally (hereinafter collectively referred to as "Ameriwest");

 
2.
Defendant PENSON FINANCIAL SERVICES CANADA. and any and all parents,
subsidiaries, affiliates, officers, directors, owners, shareholders, divisions,
employees, predecessor corporations, successor corporations, related
corporations employees, agents, administrators, attorneys, insurance carriers,
reinsurance carriers, partners, joint venturers, dba’s, associates, trustees,
beneficiaries, executors, heirs, and each of them, jointly and severally
(hereinafter collectively referred to as "Penson”);

 
3.
Defendant PRIVATE EQUITY SECURITIES, INC. and any and all parents, subsidiaries,
affiliates, officers, directors, owners, shareholders, divisions, employees,
predecessor corporations, successor corporations, related corporations
employees, agents, administrators, attorneys, insurance carriers, reinsurance
carriers, partners, joint venturers, dba’s, associates, trustees, beneficiaries,
executors, heirs, and each of them, jointly and severally (hereinafter
collectively referred to as "PES”);

1. Background & Purpose

1.1 There is now pending in the Second Judicial District Court, Washoe County,
Nevada a lawsuit entitled Ameriwest Energy Corp. v. Penson Financial Services
Canada, et al., Case Number CV0702229 (the "Action"). The Action was commenced
against Penson, PES and various other parties that Ameriwest believes
inadvertently delivered or received fictitously created shares of Ameriwest
stock. The operative complaint of Plaintiff includes causes of action for
declaratory relief and preliminary and permanent injunction.

1.2 On or about May 4, 2007, Ameriwest filed a form 8-K making a public
disclosure and announcement of a 3.6 to 1 forward stock split. On or about May
14, 2007, Ameriwest’s Transfer Agent, Empire Stock Transfer, filed a transfer
agent verification form with NASDAQ verifying the 3.6 to 1 forward stock split
and issued post-split shares. On June 18, 2007, June 19, 2007 and June 20, 2007,
Penson purchased 180,000 post-split shares in open market transactions that
originated or was first sold by PES. Nevertheless, Penson ultimately received a
total of 648,000 shares as a result of a second 3.6 to 1 stock split announced
by the Depository Trust Company (“DTC”) and effected by PES. Penson is currently
holding 468,000 shares of fictitious “double split” stock of Ameriwest with
CUSIP no. 030757108 in a suspense account (the “Shares”).

1.3 It is the intent of the Settling Parties to avoid the cost and expense of
further litigation among them as it relates to the Action. The Settling Parties
dispute all of the allegations made against them by the other, whether alleged
or not, and deny that they have any liability towards the other. The Settling
Parties have agreed to settle any and all disputes and claims which do or may
exist between them, or may exist in the future, arising from, based upon or
related to the facts, circumstances or conditions alleged in the ACTION, on the
terms and conditions set forth below.
 

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2. Settlement Terms

In consideration of the mutual releases and agreements contained herein, the
Settling Parties have agreed to settle the Action and any and all disputes
between them as follows:

2.1 PES represents and warrants that it’s client(s) has the legal right to
receive the Shares.

2.2 Penson agrees and covenants to effect a “free delivery” of the Shares to PES
through PES’s clearing house, Legent Clearing, LLC.

2.3 Penson hereby releases any claim of right, title or interest in or to the
Shares.

2.4 PES agrees and covenants it will return and deliver the Shares to those of
its clients who have a legal claim to ownership of the Shares.

2.5 PES shall indemnify, defend and hold Plaintiff Ameriwest and Penson and each
of their officers, directors, agents, attorneys and accountants (“Indemnified
Parties”), harmless from and against any expense, loss, damage or liability
incurred or connected with, or any claim, suit, demand, loss, judgment,
liability, cost or expense (including reasonable attorneys' fees) arising from
or related to, the Shares or any act or omission made by Indemnified Parties in
furtherance of delivery and transfer of the Shares to PES, provided that the
same were not the result of fraud, gross negligence, or intentional misconduct
on the part of the Indemnified Parties against whom a claim is asserted.
 
2.6 Plaintiff Ameriwest shall file a dismissal with prejudice of its Complaint
in the ACTION as to PES only, and each and every cause of action asserted
therein against PES only, within five (5) days after delivery of the Shares as
set forth in Section 2.2 above.

3. Mutual Release

3.1 The Settling Parties represent that they have the legal authority to enter
into this Agreement and to give the following releases with respect to the
Action. The Settling Parties specifically warrant that they have the authority
to release all claims and execute this Agreement and enter into the settlement
which is the subject of this Agreement.

3.2 In consideration for the agreements set forth herein, and with respect
specifically to the Shares, Ameriwest, PES and Penson, and each of their
respective assigns, heirs and beneficiaries, hereinafter forever release and
discharge each other party and their respective assigns, heirs and
beneficiaries, and each of them, from and against any and all claims, demands,
controversies, causes of action, obligations, liabilities, costs, expenses,
attorneys' fees, expert fees and damages of whatever character, nature and kind
in law or in equity, past, present or future, known or unknown, suspected or
unsuspected, from the beginning of time to the present, arising from, relating
to or in connection with the Action or the allegations, facts and circumstances
set forth therein.

3.3 The releases provided in the section shall be effective as a bar to all
claims, demands, controversies, causes of action, liabilities, costs, expenses,
attorneys' fees, and damages of whatever character, nature or kind, known or
unknown, suspected or unsuspected, as well as those specified to be so barred
and set forth in this Section 3 entitled "Mutual Release." It is the specific
intention of all Settling Parties that the releases shall apply to these
Settling Parties as well as to all firms, corporations, entities, employees,
partners, agents, divisions, shareholders, directors and affiliates of the
Settling Parties. The parties to this Agreement specifically intend to avoid the
result/decision reached by the Nevada Supreme Court in Russ v. General Motors
Corporation, 111 Nev. 1431 (1995).
 

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3.4 Settling Parties specifically understand and acknowledge that the releases
referenced above have been separately bargained for and expressly consented to
and that this Agreement will be given full force and effect in accordance with
each and all of the terms and provisions, including those terms and provisions
relating to known and unknown claims.

3.5 Covenant Not to Sue. Each party agrees to refrain from initiating,
prosecuting or maintaining (or causing or assisting in the initiation,
prosecution or maintenance of) any action, suit, claim or administrative
proceeding against the other party to this Agreement based on any claim released
pursuant to Section 3.2 above, and each further agrees not to file any
complaints, petitions, motions or other proceedings with respect thereto.
Ameriwest, Penson and PES represent and warrant that neither has filed any such
complaints, petitions, motions, or other proceedings.

4. Confidentiality

4.1 Neither party to this Agreement shall disclose either the fact of this
Agreement’s existence or the terms of this Agreement to any third parties
including, without limitation, the media, or make any public statement in regard
thereto except as follows:

 
a.
To the extent required to comply with applicable law, including securities laws,
and due legal process, but only provided that at least three (3) business days
prior to any contemplated disclosure, the disclosing party notify the other
party to the effect that such disclosure is being required under applicable law
or by due legal process;

b. After notice to, and with the prior written consent of, the other party;
 

 
c.
To legal counsel and accountants, so long as such individuals agree to maintain
the confidentiality of the Agreement.

4.2 Except as required in connection with further judicial proceedings necessary
to effectuate this Agreement, or in connection with confidentially securing the
confidential advice of financial advisors (who shall be made aware of, and
instructed and agree to comply with, the terms of this confidentiality provision
as stated above), the Settling Parties shall not, and shall instruct their
counsel not to, disclose to any other person or entity any of the terms or
conditions of this Agreement, nor any terms thereof, nor estimate or
characterize the amount of the settlement embodied in this Agreement, or any
part or portion thereof.
 
4.3 In the event that the Settling Parties, or their attorneys of record,
receive inquiries made about the claims made in the Action or about the status
of the civil action or the settlement, their response shall be limited to the
following: “This claim has been resolved and dismissed by mutual agreement of
the parties.”

5. Miscellaneous Provisions

5.1 Entire Agreement. This Agreement constitutes the full and entire agreement
between the parties hereto and each such party acknowledges that there is no
other agreement, oral and/or written, between the parties hereto. This Agreement
may be amended only by a written instrument signed by all parties hereto. This
is an integrated agreement and this writing is intended as a complete and
exclusive statement of the terms of the parties' agreement with respect to the
subject matter hereof.
 

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5.2 Construction. The parties to this Agreement, and each of them, acknowledge
that (1) this Agreement and its reduction in final written form are a result of
good faith negotiations between the parties through their respective attorneys,
(2) the parties and their attorneys have reviewed and examined this Agreement
before execution by said parties or any of them, and (3) any statutory rule of
construction, including that ambiguities are to be construed against the
drafting party, will not be employed in the interpretation of this Agreement.

5.3 Attorneys Fees. Each party to this Agreement will bear its own attorneys'
fees, expert fees and costs in connection with the prosecution, settlement
and/or defense of this Action, provided however, that in the event that a party
is required to enforce the terms of this Agreement against a party who is
alleged to have breached this Agreement, the prevailing party shall be entitled
to recover its attorney's fees and costs incurred in enforcing this Agreement.

5.4 Severability. The paragraph headings are for reference only and do not
affect the interpretation of any paragraph hereof. If any provision of this
Agreement is held to be illegal or invalid by a court of competent jurisdiction,
such provision will be deemed to be severed and deleted and neither such
provision nor severance and deletion will affect the validity of the remaining
provisions.

5.5 Counterparts. This Agreement may be executed in counterparts and when
executed by all parties will be binding upon all signatories hereto,
notwithstanding that the original signatures do not appear on the same copy of
the document. A facsimile copy may be deemed an original. In addition to the
foregoing, all parties to this Agreement agree to cooperate with each other in
executing all appropriate documents which must be executed in order to fulfill
the intent of the parties pursuant to the terms of this Agreement.

5.6 Representation of Authority. Each of the parties hereto represents and
warrants that he, she and/or it has not heretofore assigned or transferred or
purported to assign or transfer to anyone any claim, demand, action or cause of
action based upon, arising out of, or in any way related to any of the matters
or things released herein other than as provided herein. Each individual signing
this Agreement acknowledges that he or she has the full authority to enter into
this Agreement and bind such individual party or entity to the terms of this
Agreement.

5.7 Waiver. No breach of any provision hereof can be waived unless in writing.
Waiver of any one breach shall not be deemed to be a waiver of any other breach
of the same or any other provision hereof.

5.8 Investigation. The Parties hereto acknowledge and represent that each has
conducted such investigation of the facts and the law pertaining to the matters
released hereby as they deem necessary, and that in entering into this
Agreement, they have not relied on any statement, promise or representation of
any other Party or any representative of such other Party.

5.9 Amendment. The provisions of this Agreement may be modified at any time by
agreement of the Parties. Any such agreement hereafter made shall be ineffective
to modify this Agreement in any respect unless in writing and signed by the
Party against whom enforcement of the modification or discharge is sought.

5.10 Succession. This Agreement shall be binding upon and for the benefit of the
Parties and their respective predecessors, successors, owners, members, heirs,
devisees, executors, affiliates, representatives, assigns, officers, directors,
shareholders, partners, attorneys, agents and employees wherever the context
requires or admits.
 

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5.11 Representation by Counsel. This Agreement has been carefully read by all
Parties and the contents hereof are known and understood by all Parties. The
Parties have each received independent legal advice from attorneys of their
choice with respect to the preparation, review and advisability of executing
this Agreement. Prior to the execution of this Agreement by each Party, the
Party’s attorney has reviewed the Agreement and each Party acknowledges that
they have executed this Agreement after independent investigation and without
fraud, duress or undue influence.

5.12 Governing Law. The rights and obligations of the Parties and the
interpretation and performance of this Agreement shall be governed by the law of
the State of Nevada excluding its conflict of laws rules.

5.13 Cooperation. The Parties each agree on behalf of themselves, their
respective predecessors, successors, owners, members, heirs, devisees,
executors, affiliates, related entities, representatives, assigns, officers,
directors, shareholders, partners, attorneys, agents and employees, to execute
all documents necessary to fulfill the terms of this Agreement.

5.14 Notice. Any notice required to be provided as stated in this Agreement
shall be via U.S. mail, certified, return receipt requested, and sent to:

AMERIWEST
c/o Mark C. Lee, Esq.
Weintraub Genshlea Chediak, A Law Corporation
400 Capitol Mall, 11th Floor
Sacramento, CA 95814
Fax No. (916) 446-1611

PENSON
c/o Brian Hurst, Esq.
Baker & McKenzie LLP
2300 Trammell Crow Center
Dallas, Texas 75201
Fax No. (214) 978-3099

PES
Attn: Ron Howell
19100 Von Karman Ave. Ste. 255
Irvine, CA 92612
Fax No. (949) 752-5022

5.15 Each of the parties to this Agreement represent and declare that they have
read this Agreement carefully and know the contents thereof and that they signed
the Agreement freely and voluntarily.
 

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AMERIWEST ENERGY CORPORATION
           
Dated: April 15, 2008
By:
   
Print Name:

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Title:

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STATE OF
)
 
) ss.
COUNTY OF ________
)

 
On ______________________before me, __________________________ a Notary Public,
personally appeared ______________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) (is/are) subscribed to the within instrument, and acknowledged to me
that (he/she/they) executed the same in (his/her/their) authorized
capacit(-y/-ies), and that by (his/her/their) signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.

WITNESS my hand and official seal.

            
Notary Public

         
PENSON FINANCIAL SERVICES CANADA
           
Dated: April 15, 2008
By:
   
Print Name:

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Title:

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STATE OF
)
 
) ss.
COUNTY OF ________
)

 

On ______________________before me, __________________________ a Notary Public,
personally appeared ______________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) (is/are) subscribed to the within instrument, and acknowledged to me
that (he/she/they) executed the same in (his/her/their) authorized
capacit(-y/-ies), and that by (his/her/their) signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
 

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WITNESS my hand and official seal.

            
Notary Public

         
PRIVATE EQUITY SECURITIES, INC.
           
Dated: April 15, 2008
By:
   
Print Name:

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Title:

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STATE OF
)
 
) ss.
COUNTY OF ________
)

 

On ______________________before me, __________________________ a Notary Public,
personally appeared ______________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) (is/are) subscribed to the within instrument, and acknowledged to me
that (he/she/they) executed the same in (his/her/their) authorized
capacit(-y/-ies), and that by (his/her/their) signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.

WITNESS my hand and official seal.

            
Notary Public

APPROVED AS TO FORM AND CONTENT:

    Dated: April 15, 2008
WEINTRAUB GENSHLEA CHEDIAK
  law corporation              
 
By:
     

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JAMES KACHMAR
Counsel for PLAINTIFF

 

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    Dated: April 15, 2008
BAKER & MCKENZIE, LLP
                 
 
By:
     

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BRIAN HURST
Counsel for PENSON FINANCIAL SERVICES CANADA