Document:

ex10-2.htm

     

    Exhibit
10.2

     

    
      AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

       

      I, John
Turitzin, agree to the terms and conditions of employment with Marvel
Entertainment, Inc. (“Company”) set forth in this employment agreement
(“Agreement”), which amends and restates my employment agreement dated March 13,
2006, as amended.

       

      1.    Term of Employment. My
employment under this Agreement (“Term”) shall commence on March 13, 2008 and
shall end on March 31, 2010 (“Expiration Date”) or such earlier date on which my
employment is terminated under Section 5 of this Agreement.  If the
Company continues to employ me beyond the Expiration Date without entering into
a written agreement extending the term of this Agreement, except as provided in
a new written employment agreement between the Company and me, all obligations
and rights under this Agreement shall lapse as of the Expiration Date, except my
confidentiality and other obligations under Sections 6 and 7, the Company’s
ongoing indemnification obligation under Section 8, and our mutual arbitration
obligations under Section 9, and I thereafter shall be an at-will employee of
the Company.

       

      2.    Nature of Duties.  I
shall be the Company’s Executive Vice President, Office of the Chief Executive
and General Counsel, and I shall report to the Company’s Chief Executive Officer
or such other person as the Company’s Board of Directors (“Board”) or its
designee shall designate.  I shall work exclusively for the Company
and shall have all of the customary powers and duties associated with that
position, together with such other and further duties as the Company shall from
time to time assign me.  I shall devote my full business time and
effort to the performance of my duties for the Company, which I shall perform
faithfully and to the best of my ability.  I shall be subject to the
Company’s policies, procedures and approval practices, as generally in effect
from time to time.

       

      I further
agree to accept election, and to serve during all or any part of the Term, as an
officer or director of the Company and of any subsidiary or affiliate of the
Company, without any compensation therefor other than that specified in this
Agreement, if elected to any such position by the stockholders or by the Board
or of any subsidiary or affiliate, as the case may be.  Unless
otherwise agreed to in writing by the Company and me, I shall immediately resign
any such office or directorship upon the expiration of the Term.

       

      3.    Place of
Performance.  I shall be based at the Company’s principal
executive office in New York City, except for required travel on the Company’s
business.  Any business travel shall be arranged in accordance with
the travel policies and procedures established by the Company.

       

      4.    Compensation and Related
Matters.

       

      (a)  Base Salary.  The
Company shall pay me base salary at an annual rate of $600,000, or such higher
rate as it elects to pay me.  My base salary shall be paid in
conformity with the Company’s salary payment practices generally applicable to
other similarly situated Company employees.  In addition to my base
salary, I shall receive $1,000 per month (the amount formerly provided to me as
“car allowance”) as salary not subject to raises, bonuses or severance
pay.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  Bonuses.  I will be
eligible to receive an annual cash bonus, in such amount (if any) as the Board
may determine in its sole discretion, based in whole or in part upon the
attainment of performance goals set by the Board (the “Bonus Performance
Goals”).  My target annual bonus amount shall be 50% of my Base Salary
received for the year.  The Board shall have the sole discretion to
determine whether I have attained the Bonus Performance Goals.  Each
annual bonus shall be paid when annual bonuses are paid generally to the
Company’s other similarly situated employees but in no event later than a day
that is within the first two and one-half months of the next calendar
year.

       

      (c)  Standard
Benefits.  During my employment, I shall be entitled to
participate in all employee benefit plans and programs (including any group
health plans, qualified pension plans, and 401(k) plans) to the same extent
generally available to other similarly situated Company employees, in accordance
with the terms of those plans and programs.  The Company shall have
the right to terminate or change any such plan or program at any
time.

       

      (d)  Vacation.  I shall
be entitled to a vacation period or periods of three (3) weeks per year taken in
accordance with the vacation policy of the Company during each year of the
Term.  Vacation time not used by the end of a calendar year shall be
forfeited.

       

      (e)  Expenses.  I shall
be entitled to receive prompt reimbursement for all reasonable and customary
travel and business expenses I incur in connection with my employment, but I
must incur and account for those expenses in accordance with the policies and
procedures established by the Company.

       

      5.    Termination.

       

      (a)    Rights and
Duties.  If my employment is terminated, I shall be entitled to
the amounts or benefits shown on the applicable row of the following table,
subject to the balance of this Section 5.  The Company and I shall
have no further obligations to each other, except my confidentiality and other
obligations under Sections 6 and 7, the Company’s ongoing indemnification
obligation under Section 8, and our mutual arbitration obligations under
Section 9, or as set forth in any written agreement I subsequently enter
into with the Company.  In no event will any of the payments to be
made under this section be made later than the seventy-fourth (74th) day of the
next fiscal year after they become payable.

       

      
        	
                 

                DISCHARGE
      
FOR CAUSE

                 

              	
                Payment
      or provision when due of (1) any unpaid base salary, expense
      reimbursements, and vacation days accrued prior to termination of
      employment, and (2) other unpaid vested amounts or benefits under Company
      compensation, incentive, and benefit plans.

                 

              
	
                 

                DEATH
      OR 
DISABILITY

              	
                 

                Same
      as for “Discharge for Cause” EXCEPT that, in exchange for my (or my
      estate’s) execution of a release in accordance with this section and
      provided that I have not violated any of my obligations under Section 6,
      below, (1) I (or my estate) will receive the bonus, if any, that the
      Company awarded me for the previously completed

                 

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	
                 

                 

              	
                 

                fiscal year, if unpaid; (2) I (or my estate) will
      receive a portion of the bonus that the Company would have awarded me for
      the fiscal year in which termination occurs, prorated for the number of
      days I actually worked for the Company in that fiscal year (and payable
      when such bonus would have been paid had my employment not terminated);
      (3) any award made to me under the Company’s stock incentive plan(s) or
      cash incentive compensation plan(s) shall immediately vest in full; and
      (4) any stock options awarded to me by the Company shall remain
      exercisable for 90 days after my termination date.

                 

              
	
                 

                DISCHARGE
      
OTHER THAN 
FOR CAUSE, 
DEATH, OR 
DISABILITY

              	
                 

                Same
      as for “Discharge for Cause” EXCEPT that, in exchange for my execution of
      a release in accordance with this section and provided that I have not
      violated any of my obligations under Section 6, below, (1) my base salary,
      but not my employment, shall continue for six months after my termination
      date or until such date as I commence employment with another entity (or
      self-employment), whichever comes first; (2) I will receive the bonus, if
      any, that the Company awarded me for the previously completed fiscal year,
      if unpaid; (3) I will receive a portion of the bonus that the Company
      would have awarded me for the fiscal year in which termination occurs,
      prorated for the number of days I actually worked for the Company in that
      fiscal year (and payable when such bonus would have been paid had my
      employment not terminated); (4) the Company will reimburse me for the cost
      of any COBRA health continuation coverage I purchase (in excess of the
      amount I would have paid for group health coverage had I remained on the
      Company’s group health plan as an employee) until the earlier of (A) the
      date on which I become eligible for health insurance benefits under
      another employer’s plan or (B) six months after the date of discharge; (5)
      any award made to me under the Company’s stock incentive plan(s) or cash
      incentive compensation plan(s) shall continue to vest during the period
      described in clause (1) of this sentence; and (6) any stock options
      awarded to me by the Company shall remain exercisable, to the extent
      vested, for 90 days after the expiration of the period described in clause
      (1) of this sentence.

                 

              
	
                 

                RESIGNATION
      
WITHOUT 
GOOD 
REASON

                 

              	
                   
      Same as for “Discharge for Cause.”

              

      

       

       

      
        
          
          

        

        
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                RESIGNATION
      
WITH GOOD 
REASON

                 

              	
                 

                   
      Same as for “Discharge Other Than for Cause, Death, or
      Disability.”

                 

              
	
                 

                TERMINATION
      
WITHOUT 
CAUSE OR 
RESIGNATION 
WITH GOOD 
REASONS
      
WITHIN 12 
MONTHS 
AFTER A 
THIRD PARTY 
CHANGE IN
      
CONTROL

              	
                 

                Same
      as for “Discharge for Cause” EXCEPT that, in exchange for my execution of
      a release in accordance with this section and provided that I have not
      violated any of my obligations under Section 6, below, (1) I will receive,
      in a lump sum within 30 days after my termination date, an amount equal to
      two times the sum of (A) my then current Base Salary and (B) the average
      of the two most recent annual bonuses paid to me by the Company (treating
      any annual bonus which is not paid as a result of my failure to attain the
      Bonus Performance Goals as having been paid in an amount equal to zero) or
      if only one annual bonus has been paid to me by the Company, the amount of
      that annual bonus; (2) I will receive the bonus, if any, that the Company
      awarded me for the previously completed fiscal year, if unpaid; (3) I will
      receive a portion of the bonus that the Company would have awarded me for
      the fiscal year in which termination occurs, prorated for the number of
      days I actually worked for the Company in that fiscal year (and payable
      when such bonus would have been paid had my employment not terminated);
      (4) the Company will reimburse me for the cost of any COBRA health
      continuation coverage I purchase (in excess of the amount I would have
      paid for group health coverage had I remained on the Company’s group
      health plan as an employee) until the earlier of (A) the date on which I
      become eligible for health insurance benefits under another employer’s
      plan or (B) twelve months after my termination date; (5) any award made to
      me under the Company’s stock incentive plan(s) or cash incentive
      compensation plan(s) shall continue to vest for twelve months after my
      termination date, unless vested sooner pursuant to the terms of the award;
      and (6) any stock options awarded to me by the Company shall remain
      exercisable, to the extent vested, for 90 days after the twelve-month
      anniversary of my termination date

                 

                Any
      payments or benefits provided to me in connection with a Third Party
      Change on Control shall be in lieu of any other benefits or payment
      available or otherwise payable to me under this Section 5.

                 

              
	
                 

                EXPIRATION
      
OF
      
AGREEMENT

                 

              	
                 

                Same
      as for “Discharge for Cause.”

                 

              

      

       

      
        
          
          

        

        
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      (b)           
Discharge for
Cause.  The Company may terminate my employment at any time if
the Board believes that it has Cause to terminate me.  “Cause” means
that one or more of the following events occurred:

       

      (i)    my
indictment for, or conviction of, a felony, a crime involving theft,
fraud, dishonesty or moral turpitude, or any violation of any federal or
state securities law (whether by plea of nolo contendere or otherwise)
or my being enjoined from violating any federal or state securities law or being
determined to have violated any such law.

       

      (ii)    my
refusal to follow the Company’s lawful directions or my material failure to
perform my duties (other than by reason of physical or mental illness, injury,
or condition), in either case, after I have been given notice of my default and
five business days to cure my default;

       

      (iii)    my
engaging in conduct constituting embezzlement, willful assistance to a
competitor, fraud, misappropriation, material violation of the Company’s
anti-discrimination, equal employment opportunity, prohibition against
harassment or similar policies or material violation of the Company’s insider
trading policy, corporate code of business conduct and ethics or other material
policy, or my engaging in conduct tending to bring the Company or any other
member of the Group (as defined in Section 6(a), below) into public disgrace or
disrepute;

       

      (iv)    my
failure (including, but not limited to, my refusal to be deposed or to provide
testimony at any trial or inquiry) to cooperate, if requested by the Board, with
any investigation or inquiry, whether internal or external, into my actions (or
inactions) or the Company’s business practices;

       

      (v)    my
possession on Company premises of any prohibited drug or substance that would
amount to a criminal offense;

       

      (vi)    my gross
misconduct or gross negligence in connection with the business of the Company or
any affiliate;

       

      (vii)    my
material breach of this Agreement, including of any promise I made in Section 6,
below; or

       

      (viii)    my
seeking, exploring, or accepting a position with another business enterprise or
venture without the Company’s written consent at any time more than 90 days
before the Expiration Date.

       

      If my employment ends for any reason
other than discharge by the Company for Cause, but at a time when the Company
had Cause to terminate me (or would have had Cause if it then knew all relevant
facts), my termination shall be treated as a discharge by the Company for
Cause.

       

      (c)    Termination for
Disability.  Except as prohibited by applicable law, the
Company may terminate my employment on account of Disability, or may transfer me
to inactive employment status, which shall have the same effect under this
Agreement as a 

       

       

      
        
          
          

        

        
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      termination for
Disability.  “Disability” means a physical or mental illness, injury,
or condition that prevents me from performing substantially all of my duties
under this Agreement for at least 90 consecutive calendar days or for at least
120 calendar days, whether or not consecutive, in any 365 calendar-day period,
or is likely to do so, as certified by a physician selected by the
Company.

       

      (d)    Discharge Other Than for Cause,
Death, or Disability.  The Company may terminate my employment
at any time for any reason, and without advance notice.  If I am
terminated by the Company other than for Cause, Death, or Disability, I will
receive the special benefits provided for a non-Cause discharge under Section
5(a) only if I sign a separation agreement and general release form furnished to
me by the Company within 45 days from its delivery to me (or such shorter
deadline as the Company establishes at the time) and I do not thereafter
properly revoke the release.

       

      (e)    Resignation.  I
promise not to resign my employment before the Expiration Date unless I have
been given Good Reason (as defined below) to do so.  If I break that
promise and resign other than for Good Reason, I shall nevertheless remain
employed under this Agreement except to the extent the Company elects to cancel
it.  If I resign other than for Good Reason and the Company accepts my
resignation, the Company may do so effective on the date set forth in my notice
or any earlier date.  If I resign for Good Reason, my employment will
end on my last date of work and I will receive the benefits to which I am
entitled under Section 5(a), but only if I sign a separation agreement and
general release form furnished to me by the Company within 45 days from its
delivery to me (or such shorter deadline as the Company establishes at the time)
and I do not thereafter properly revoke the release. “Good Reason” means that,
without my express written consent, one or more of the following events occurred
after my execution of this Agreement and was not reversed or cured within 30
days of my giving the Company written notice that I consider the event (if it
remains) to have given me “Good Reason” for resigning:

       

      (i)    a
substantial and adverse diminishment of my duties or
responsibilities;

       

      (ii)    a
transfer of my principal office to a location more than 50 miles from the
location set forth in Section 3, above; or

       

      (iii)    the
Company’s material breach of this Agreement.

       

      An event that is or would constitute
Good Reason, however, shall cease to be Good Reason if:  (1) I do not
terminate employment within 30 days after the end of the 30-day notice period
referred to above; or (2) I was a primary instigator of the Good Reason event
and the circumstances make it inappropriate for me to receive Good Reason
resignation benefits under this Agreement.

       

      (f)    Death.  If I die
while employed under this Agreement, my employment shall be considered
terminated as of my date of death and the payments required by Section 5(a) in
the event of my death shall be made.

       

       

      
        
          
          

        

        
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      (g)    Transfers to Group
Member.  My transfer to another member of the Group shall not
be deemed a termination of my employment under this Agreement if it assumes this
Agreement.

       

      (h)    Disputes Under This
Section.  All disputes relating to this Agreement, including
disputes relating to this section, shall be resolved by final and binding
arbitration under Section 9.  For example, if the Company and I
disagree as to whether the Company had Cause to terminate my employment, we will
resolve the dispute through arbitration; the arbitrator will decide whether the
Company had Cause to terminate my employment.

       

      (i)    Amounts Owed to the
Company.  Any amounts payable to me under this section shall
first be applied to repay any amounts I owe the Company.

       

      (j)    Third Party Change in
Control.  For purposes of this Agreement, a Third Party Change
in Control shall be deemed to have occurred if (i) any “person” or “group” (as
those terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)), other than an Excluded Person or
Excluded Group (as defined below) (hereinafter, a “Third Party”), is or becomes
the “beneficial owner” (as defined below), directly or indirectly, of securities
of the Company representing fifty percent (50%) or more of the combined voting
power of the Company’s then outstanding securities entitled to vote in the
election of directors of the Company, (ii) the Company is a party to any merger,
consolidation or similar transaction as a result of which the shareholders of
the Company immediately prior to the transaction beneficially own securities of
the surviving entity representing less than fifty percent (50%) of the combined
voting power of the surviving entity’s outstanding securities entitled to vote
in the election of directors of the surviving entity, or (iii) all or
substantially all of the assets of the Company are acquired by a Third
Party.  “Excluded Group” means a “group” (as that term is used in
Sections 13(d) and 14(d) of the Exchange Act) that includes one or more Excluded
Persons; provided that the voting power of the voting stock of the Company
beneficially owned by those Excluded Persons represents a majority of the voting
power of the voting stock beneficially owned by the group.  “Excluded
Person” means Isaac Perlmutter, any spouse or descendant of Mr. Perlmutter, any
trust established solely for the benefit of, and any charitable trust or
foundation established by, Mr. Perlmutter or his spouse or descendants and each
of their respective affiliates and estates.  “Beneficial owner”,
“beneficially own” and “beneficially owned” have the same meanings as in Rule
13d-3 under the Exchange Act.

       

      (k)    Section
409A.   Notwithstanding anything in this Section 5 to the
contrary, if and to the extent that the Company determines in good faith that
(i) any payment or benefit that exceeds two times the limit in effect under Code
Section 401(a)(17) for the calendar year of my termination (or, if less, two
times my annualized compensation for the preceding calendar year) and that is
otherwise payable to me under this Section 5 constitutes a “deferral of
compensation” under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) (as set forth in Treasury Regulations or binding
administrative notices or rulings issued by the Internal Revenue Service) and
(ii) I am a “specified employee” within the meaning of Code Section
409A(a)(2)(B)(i), then the Company shall delay commencement of any such payment
or benefit until six months after my last day of employment with the Company
(the “409A Suspension Period”).  Within fourteen calendar days after
the end of the 409A 

       

       

      
        
          
          

        

        
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      Suspension Period, the
Company shall pay me a lump sum payment in cash equal to any payments (including
interest on any such payments, at an interest of not less than the prime
interest rate, as published in The
Wall Street Journal, over the period such payment is restricted from
being paid to me) and benefits that the Company would otherwise have been
required to provide under this Section 5 but for the imposition of the 409A
Suspension Period.  Thereafter, I shall receive any remaining payments
and benefits due under this Section 5 in accordance with the terms of this
section (as if there had not been any suspension period
beforehand).

       

      (l)    Golden Parachute
Limitation.  If any  payment  or benefit
(within the meaning of Section 280G(b)(2) of the Code), to me or for my benefit
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise in connection with, or arising out of, my employment with
the Company or a change in ownership or effective control of the Company or of a
substantial portion of its assets (a “Parachute Payment” or “Parachute
Payments”), would be subject to the excise tax imposed by Section 4999 of the
Code or any interest or penalties are incurred by me with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then I will be
entitled to receive an additional payment (a “Gross-Up Payment”) in an amount
such that after payment by me of all taxes (including any interest or penalties,
other than interest and penalties imposed by reason of my failure to file timely
a tax return or pay taxes shown to be due on my return), including any Excise
Tax imposed upon the Gross-Up Payment, I retain an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Parachute
Payments.  I shall receive any payments due under this Section 5(l)
within two and one-half months after they become payable (to the extent
reasonably practicable), and in no event later than the end of the calendar year
after the year in which I remit the taxes giving rise to the payment
hereunder.

       

      The determination as to whether a
Gross-Up Payment is required pursuant to this Agreement and the amount of such
Gross-Up Payment shall be made at the Company’s expense by the Company’s regular
outside auditors (the “Accounting Firm”).  The Accounting Firm shall
provide its determination (the “Determination”), together with detailed
supporting calculations and documentation to the Company and me within ten days
of the Termination Date if applicable, or promptly upon request by the Company
or by me (provided I reasonably believe that any of the Parachute Payments may
be subject to the Excise Tax) and if the Accounting Firm determines that no
Excise Tax is payable by me with respect to a Parachute Payment or Parachute
Payments, it shall furnish me with an opinion reasonably acceptable to me that
no Excise Tax will be imposed with respect to any such Parachute Payment or
Parachute Payments.  \  The Gross-Up Payment, if any, as
determined pursuant to this Section 5(l) shall be paid by the Company to me
within ten days of the receipt of the accounting Firm’s
determination.  The Determination shall be binding, final and
conclusive upon the Company and me.  Notwithstanding the foregoing, in
no event shall payment of the Gross-Up Payment occur before the earlier of my
“separation from service” (within Treasury Regulation §
1.409A-1(h))  from the Company or a change in control event (as
described within Treasury Regulation § 1.409A-3(i)(5), a “Qualifying Change in
Control”).  If I become entitled to receive a Gross Up Payment in
connection with a change in control that is not a Qualifying Change in Control,
the unpaid Gross-Up Payment shall accrue interest an annual interest rate of
prime plus one-percent until paid immediately following my last day of
employment; however, if I am a “specified employee” within the meaning of
Code Section 409A(a)(2)(B)(i), then the Company shall pay 

       

       

       

      
        
          
          

        

        
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      me the
deferred Gross-Up Payment on the date that is six months after my last day of
employment with the Company.

       

      6.    Confidentiality
Obligations.

       

      (a)    Acknowledgments.  I
recognize and agree that the Company and its subsidiaries and affiliates
(collectively or separately as the context may require, the “Group”) currently
conduct the Business (as defined below) world-wide.  I further
recognize and agree that, in my position with the Company, I will be responsible
for:  (i) actively conducting the Business, (ii) overseeing Company
activities, (iii) developing and implementing strategies on behalf of the
Company and everywhere the Group currently conducts the Business, and (iv)
affecting customers, suppliers, and distributors everywhere the Group currently
conducts the Business.  In addition, I recognize and agree that, to
enable me to satisfy my duties and responsibilities under this Agreement, the
Company will invest substantial resources in me by making available to me
Confidential Information (as defined below) and other valuable resources and
assets for which I would not have had access, but for my employment with the
Company.  To protect the Group’s business interests, including its
Confidential Information (as defined below) and business relationships, I make
the following promises in this Section 6.

       

      (b)    Non-Disclosure of Confidential
Information.  I promise and agree that I will never, directly
or indirectly, use, disclose or retain any trade secret, proprietary and/or
confidential information relating to the Group that I receive or become aware of
during my employment with or service to the Company (or that I have already
received or become aware of) concerning, among other things, the Group’s
business, operations, customers, suppliers, investors, and business partners
(“Confidential Information”).  “Confidential Information” may include,
among other things, information relating to the Group’s business or operational
methods; corporate plans; management systems; finances; new business
opportunities; story and character ideas; profits; costs of media
trades/investments; pricing and sales arrangements; terms of business; marketing
or sales of any products or services; technical processes; research projects;
inventions; designs; applications; know-how; lists or details of actual, past or
potential clients, customers or suppliers or the arrangements made with any of
them; and any information in respect of which the Group owes an obligation of
confidentiality to any third party, conveyed orally or reduced to a tangible
form in any medium.  “Confidential Information” does not include
information that (i) is generally known within the relevant industry or (ii)
that I can demonstrate by a preponderance of the evidence has subsequently
become known to me other than through my work for the Group and not as a result
of a breach of any duty owed to the Group by me or any third
party.  Notwithstanding this paragraph, I may disclose Confidential
Information as required by court order, subpoena, or otherwise as required by
law, provided that upon receiving such order, subpoena, or request and prior to
disclosure, I shall provide written notice to the Company of such order,
subpoena, or request and of the content of any testimony or information to be
disclosed and shall cooperate fully with the Company to lawfully resist
disclosure of such information.  Nothing in this Agreement shall
prevent me from testifying or meeting with any representatives of any federal,
state or local law enforcement agency who are investigating any matters
involving the Company’s business practices.

       

       

      
        
          
          

        

        
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      (c)    Non-Competition and
Non-Solicitation.  I promise and agree that I will not,
directly or indirectly, on my own behalf or on behalf of any other person or
entity, whether as an owner, director, officer, partner, employee, agent or
consultant, for pay or otherwise, during my employment with the Company (except
on behalf of the Company) and for a period of six months after that employment
ends for any reason:

       

      (i)    render
services of an executive, advertising, marketing, sales, supervisory, technical,
research, purchasing, or consulting nature to any person or entity (or on my own
behalf, if I am self-employed) that is engaged in a business that competes with
or intends to compete with any business conducted by the Group, including but
not limited to character-based licensing, publication (in any medium) of comic
books or other graphic fiction, toy manufacturing, film production and
entertainment (“Business”), nor shall I become interested in any such business,
directly or indirectly, as an individual, partner, shareholder, director,
officer, principal, agent, employee, trustee, consultant, or in any other
relationship or capacity; provided,
however,
that nothing contained in this paragraph shall be deemed to prohibit me from
acquiring, solely as an investment, up to five percent (5%) of the outstanding
shares of capital stock of any public corporation;

       

      (ii)    solicit
or serve, participate in soliciting or serving or induce, advise, encourage or
attempt to solicit or serve any customer, supplier, vendor, or distributor of
the Group (A) for which I was responsible during my employment with the Company,
(B) with whom I had business contacts or dealings on behalf of the Company
during my employment with the Company, or (C) about which I learned confidential
information; or

       

      (iii)    induce or
attempt to induce any employee of, independent contractor for or service
provider to the Group to stop working, or to reduce their work or services, for
the Group or to work for any competitor of the Group.

       

      (d)    Return of
Information.  I promise and agree that, prior to my last day of
employment with the Company or at the Company’s earlier request, I will return
all Company property and/or Confidential Information in any form or media and
all copies thereof in my possession, custody, or control, including memoranda,
notes, records, reports, manuals, drawings, blueprints, and other documents, and
I shall delete all Confidential Information from any computers, e-mail accounts,
or other electronic memory devices I own or use outside the Company’s workplace
(including, but not limited to, PDAs, cell phones, and USB storage
devices).

       

      (e)    Remedies.  I
understand and acknowledge that the promises and agreements made by me in this
Section 6 are essential, material, and indispensable conditions of this
Agreement, and that the payment and benefits provided for herein by the Company
would not have been provided in the absence of these promises and
agreements.  I acknowledge that the terms of this Section
6:  (i) are reasonable and necessary to protect the Group’s legitimate
interests; (ii) will not prevent me from earning or seeking a livelihood; and
(iii) shall apply wherever permitted by law.  I further acknowledge
and agree that my violation of any of the terms of this Section 6 would
irreparably harm the Group.  Accordingly, I agree that if I violate or
threaten to violate any promise or agreement made by me in this Section
6:

       

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      (i)           the
Company may terminate my employment immediately for Cause;

       

      (ii)           all
payments and benefits otherwise owing to me under Section 5 of this Agreement
shall immediately cease and be considered forfeited, and I shall have no further
entitlement to such payments or benefits;

       

      (iii)           the
Company shall have the right and remedy to require me to account for and pay
over to the Company all compensation, profits, monies, accruals, increments, or
other benefits (collectively “Benefits”) derived or received by me as the result
of any transactions constituting a breach of any of the provisions of this
Section 6, and I hereby promise and agree to account for and pay over such
Benefits to the Company;

      

      (iv)           the
Group will be entitled to, in addition to and without limiting any other
remedies available to it, an injunction to be issued by any court of competent
jurisdiction restraining me from committing or continuing any such violation,
without the need to prove the inadequacy of money damages or to post any bond or
to make any other undertaking;

      

      (v)           with
respect to any proceedings under this Section 6(e), I consent to the
non-exclusive jurisdiction of the Federal and state courts located in New York
County, New York State and I waive any objection to those courts’ being the
venue of those proceedings; and

      

      (vi)           the
Group shall be entitled to recover from me the reasonable costs, including
attorneys’ fees, it incurs in pursuing legal action to enforce this Section 6,
but only if that legal action results in a money judgment, temporary restraining
order, or injunction against me.

      

                            Each
of the rights and remedies enumerated above shall be independent of the other,
and shall be severally enforceable, and all of such rights and remedies shall be
in addition to, and not in lieu of, any other rights and remedies available to
the Company under law or in equity.

      

      (f)    Enforceability.  If
any of the provisions, covenants, or parts thereof in this Section 6 are
construed to be invalid or unenforceable, the same shall not affect the
remainder of the provisions, covenants, or parts thereof, which shall be given
full effect, without regard to the invalid portions.  If any of the
provisions, covenants, or parts thereof in this Section 6 are held to be
unenforceable because of the duration or scope of such provision or the area
covered thereby, the parties hereto agree that the court making such
determination shall have the power to reduce the duration, scope and/or area of
such provision and, in its reduced form, said provision shall then be
enforceable.  The parties hereto intend to and hereby confer
jurisdiction to enforce the covenants contained in this Section 6 upon the
courts of any state within the geographical scope of such
covenants.  In the event that the courts of any one or more of such
states shall hold such covenants wholly unenforceable by reason of the breadth
of such covenants or otherwise, it is the intention of the parties hereto that
such determination not bar or in any way affect the Company’s right to the
relief provided above in the courts of any other states within the geographical
scope of such covenants as to breaches of such covenants in such 

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      other
respective jurisdictions, the above covenants as they relate to each state being
for this purpose severable into diverse and independent covenants.

       

      (g)    Survival.  This
Section 6, and the promises and agreements I made in this section, shall survive
the end of my employment and the termination of this Agreement for any
reason.

       

      7.   Inventions
and Patents; Intellectual Property; Work for Hire.

       

      (a)    I agree
that all processes, technologies and inventions, including new contributions,
improvements, ideas and discoveries, whether patentable or not, conceived,
developed, invented or made by me during my employment by the Company or for one
year thereafter (collectively, “Inventions”) shall belong to the Company,
provided that such Inventions grew out of my work with the Company or any of its
subsidiaries or affiliates, are related to the business (commercial or
experimental) of the Company or any of its subsidiaries or affiliates or are
conceived or made on the Company’s time or with the use of the Company’s
facilities or materials.  I shall promptly disclose any Inventions to
the Company and shall, subject to reimbursement by the Company for all
reasonable expenses incurred by me in connection therewith, (a) assign to the
Company, without additional compensation, all patent and other rights to such
Inventions for the United States and foreign countries; (b) sign all papers
necessary to carry out the foregoing; and (c) give testimony in support of my
inventorship.

       

      (b)           The
Company shall be the sole owner of all the products and proceeds of my services
hereunder, including, but not limited to, all materials, ideas, concepts,
formats, suggestions, developments, arrangements, packages, programs and other
intellectual properties that I may acquire, obtain, develop or create in
connection with and during his employment, free and clear of any claims by me
(or anyone acting or claiming on my behalf) of any kind or character whatsoever
(other than the my right to receive payments hereunder).  I shall, at
the request of the Company, execute such assignments, certificates or other
instruments as the Company may from time to time deem necessary or desirable to
evidence, establish, maintain, perfect, protect, enforce or defend its right,
title or interest in or to any such properties.

      

      (c)           I
understand that within the scope of my employment, I may create or contribute to
literary, artistic, or other kinds of material (collectively, the “Works”) that
may qualify as “works made for hire” under U.S. copyright law, and if so, that
the Company is the author and sole owner of the Works in the U.S. and worldwide,
and I waive any rights I may have to the Works, including moral
rights.  If at any time, any of the Works are deemed not to be works
made for hire, I assign, grant, transfer and convey to the Company all my right,
title and interest to the Works for the entire length of time they are protected
by any applicable law.  I agree (whether during or after my employment
with the Company) to sign any document the Company may reasonably request in
order to secure or enforce the Company’s rights in the Works.  I
irrevocably appoint the Company and any of its officers as my attorney-in-fact
to secure and enforce the rights in my name.  To the extent that I
retain any right, title or interest to the Works, I agree to:
(i) unconditionally and irrevocably waive the enforcement of such rights,
and all claims and causes of action of any kind against the Company with respect
to such rights; (ii) consent to and join in any action to enforce such rights at
the Company’s request; and (iii) grant to the Company an irrevocable, fully
paid-up, transferable, sublicensable, worldwide 

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

      right and license to use,
reproduce, distribute, display and perform, prepare derivative works of and
otherwise modify without limitation, make, sell, offer to sell, import and
otherwise use and exploit all or any portion of the Works, in any form or media
(now known or later developed).

      8.   Indemnification.  To
the fullest extent permitted by applicable law, I shall be indemnified and held
harmless for any action or failure to act in my capacity as an officer or
employee of the Company or any of its affiliates or subsidiaries.  In
furtherance of the foregoing and not by way of limitation, if I am a party or am
threatened to be made a party to any suit because I am or was an officer or
employee of the Company or such affiliate or subsidiary, I shall be indemnified
against expenses, including reasonable attorney’s fees, judgments, fines and
amounts paid in settlement, if I acted in good faith and in a manner reasonably
believed to be in or not opposed to the best interest of the Company, and, with
respect to any criminal action or proceeding, I had no reasonable cause to
believe that my conduct was unlawful.  I shall give the Company prompt
notice of any such suit; provided, that my failure to do so shall not relieve
the Company from any obligation that it would otherwise have pursuant to this
Section 8 except to the extent that the Company has been prejudiced by that
failure.  The Company shall have the option to control the defense and
settlement of any such suit.  No settlement affecting my rights shall
be entered into by the Company without my consent, such consent not to be
unreasonably withheld.  Indemnification under this Section 8 shall be
in addition to any other indemnification by the Company of its officers and
directors.  Expenses incurred by me in defending an action, suit or
proceeding for which I claim the right to be indemnified pursuant to this
Section 8 shall be paid by the Company in advance of the final disposition of
such action, suit or proceeding upon receipt of an undertaking by or on behalf
of me to repay such amount in the event that it shall ultimately be determined
that I am not entitled to indemnification by the Company.  Such
undertaking shall be accepted without reference to my financial ability to make
repayment.  The provisions of this Section 8 shall apply as well to my
actions and omissions as a trustee of any employee benefit plan of the Company,
its affiliates or subsidiaries.

       

      9.   Arbitration of
Disputes.  Except as expressly prohibited by law and except for
the Company’s right to seek injunctive relief as set forth in Section 6(e),
above, all disputes between the Company and me (“Arbitrable Disputes”) are to be
resolved by final and binding arbitration in accordance with this Section
9.  This section shall remain in effect after the termination of this
Agreement or my employment.

       

      (a)    Scope of
Agreement.  This arbitration agreement applies to, among other
things, disputes concerning my employment with and/or termination from the
Company; the validity, interpretation, enforceability or effect of this
Agreement or alleged violations of it; claims of discrimination under federal or
state law; or other statutory or common law claims.

       

      (b)    The
Arbitration.  The arbitration shall take place under the
auspices of JAMS in the metropolitan area in which I am then (or was last)
employed and conducted in accordance with the JAMS Employment Arbitration Rules
and Procedures then in effect before an experienced employment law arbitrator
licensed to practice law in that jurisdiction who has been selected in
accordance with such rules.  The arbitrator may not modify or change
this Agreement in any way except as expressly set forth herein.

       

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      (c)    Fees and
Expenses.  Each party shall pay the fees of its attorneys, the
expenses of its witnesses, and any other costs and expenses that the party
incurs in connection with the arbitration, but all other costs of the
arbitration, including the fees of the arbitrator, the cost of any record or
transcript of the arbitration, administrative fees and other fees and costs
shall be paid one half by the Company and one half by
me.  Notwithstanding the foregoing, the arbitrator may, in his or her
discretion, award reasonable attorneys’ fees (in addition to any other damages,
expenses or relief awarded) to the prevailing party.

       

      (d)    Exclusive
Remedy.  Arbitration pursuant to this Section 9 shall be the
exclusive remedy for any Arbitrable Dispute.  Should I or the Company
attempt to resolve an Arbitrable Dispute by any method other than arbitration
pursuant to this Section 9, the responding party will be entitled to recover
from the initiating party all damages, expenses and attorneys’ fees incurred as
a result of that breach.

       

      (e)    Judicial
Enforcement.  Nothing in this Section 9 shall preclude any
party to this agreement from seeking judicial enforcement of an arbitrator’s
award.  Judgment may be entered on the arbitrator’s award in any court
having jurisdiction.

       

      10.   Notices.  All
notices, requests, consents and other communica­tions required or permitted
to be given hereunder shall be in writing and shall be deemed to have been duly
given if delivered personally, sent by overnight courier (notices sent by
overnight courier shall be deemed to have been given on the scheduled delivery
date) or mailed first class, postage prepaid, by registered or certified mail
(notices mailed shall be deemed to have been given on the third business day
after mailing), as follows (or to such other address as either party shall
designate by notice in writing to the other in accordance
herewith):

       

      If to the
Company, to:

      

      Marvel
Entertainment, Inc.

      417 Fifth
Avenue

      New York,
New York 10016

      Attention:  General
Counsel

      

      If to me,
to me at my address as then on file with the Company’s Human Resources
Department.

       

      11.    Amendment.  No
provisions of this Agreement may be modified, waived, or discharged except by a
written document signed by a duly authorized Company officer and
me.  Thus, for example, promotions, commendations, and/or bonuses
shall not, by themselves, modify, amend, or extend this Agreement.  A
waiver of any conditions or provisions of this Agreement in a given instance
shall not be deemed a waiver of such conditions or provisions at any other
time.

       

      12.   Interpretation; Governing
Law.  The validity, interpretation, construction, and
performance of this Agreement, and any proceedings under Section 6(e) or
arbitrations under Section 9, shall be governed by the law of the State of New
York (excluding where it mandates the use of another jurisdiction’s
laws).

       

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      13.   Successors.  This
Agreement shall be binding upon, and shall inure to the benefit of, me and my
estate, but I may not assign or pledge this Agreement or any rights arising
under it, except to the extent permitted under the terms of the benefit plans in
which I participate.  Without my consent, the Company may assign this
Agreement to any affiliate or successor that agrees in writing to be bound by
this Agreement, after which any reference to the “Company” in this Agreement
shall be deemed to be a reference to the affiliate or successor, and the Company
thereafter shall have no further primary, secondary or other responsibilities or
liabilities under this Agreement of any kind.

       

      14.   Taxes.  The Company
shall withhold taxes from payments it makes pursuant to this Agreement as it
determines to be required by applicable law.

       

      15.   Validity.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

       

      16.   Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute the same
instrument.

       

      17.   Section
Headings.  The section headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

       

      18.   Subsidiaries and
Affiliates.  As used herein, the term “subsidiary” shall mean
any corporation or other business entity controlled directly or indirectly by
the Company or other business entity in question, and the term “affiliate” shall
mean and include any corporation or other business entity directly or indirectly
controlling, controlled by or under common control with the Company or other
business entity in question.

       

      19.   Entire
Agreement.  All oral or written agreements or representations,
express or implied, with respect to the subject matter of this Agreement are set
forth in this Agreement.  This Agreement overrides and supersedes any
prior agreements or representations, express or implied, with respect to the
subject matter of this Agreement.  This Agreement does not, however,
override or supersede other written agreements I have executed relating to
specific aspects of my employment, such as conflicts of interest.

       

      20.   Former Employers.  I
am not subject to any employment, confidentiality, or other agreement or
restriction that would prevent me from fully satisfying my duties under this
Agreement or that would be violated if I did so.  Without the
Company’s prior written approval, I promise I will not:

       

      (a)    disclose
proprietary information belonging to a former employer or other entity without
its written permission;

       

      (b)    contact
any former employer’s customers or employees to solicit their business or
employment on behalf of the Group; or

       

       

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      (c)    distribute
announcements about or otherwise publicize my employment with the
Group.

       

      I will indemnify and hold the Company
harmless from any liabilities, including defense costs, that it may incur
because I am alleged to have broken any of these promises or improperly revealed
or used such proprietary information or to have threatened to do so, or if a
former employer challenges my entering into this Agreement or rendering services
pursuant to it.

       

      21.   Department of Homeland Security
Verification Requirement.  I agree to file, in a timely manner,
all documents required by the Department of Homeland Security to verify my
identity and my lawful employment in the United
States.  Notwithstanding any other provision of this Agreement, if I
fail to meet any such requirements promptly after receiving a written request
from the Company to do so, I agree that my employment shall terminate
immediately and that I shall not be entitled to any compensation from the
Company of any type.

       

      
        
           

          
            	
                    I
      acknowledge that all understandings and agreements between the Company and
      me relating to the subjects covered in this Agreement are contained in it
      and that I have entered into this Agreement voluntarily and not in
      reliance on any promises or representations by the Company other than
      those contained in this Agreement itself.

                     

                    I
      further acknowledge that I have carefully read this Agreement, that I
      understand all of it, and that I have been given the opportunity to
      discuss this Agreement with my private legal counsel and have availed
      myself of that opportunity to the extent I wished to do so.  I
      understand that by signing this Agreement I am giving up my right to a
      jury trial.

                  

          

           

        

        
        

      

      Date:    March
21,
2008                                                       MARVEL
ENTERTAINMENT, INC.

      

       

      By:           /s/ Kenneth P.
West                                 
                                                                

      Kenneth P. West

      Executive
Vice President and

      Chief
Financial Officer

      

      

      Date:   March
21,
2008                                                         /s/ John
Turitzin                                                         

      John Turitzin

      

      

      -16-Unassociated Document

    EXCLUSIVE
      OPTION TO PURCHASE

    

    

    This
      Exclusive Option to Purchase is made and entered into by and between Ameriwest
      Energy Corp, (“Ameriwest”), and Hot Springs Resources, LTD., (“Hot Springs
      Resources”) on the 19th day of March, 2008 (hereinafter the “Execution Date”).
      For good and valuable consideration, the receipt and sufficiency of which are
      hereby acknowledged, the parties, Ameriwest and Hot Springs Resources, agree
      to
      the following definitions, terms and conditions:

    

    
      
        Section
          1. 

      

    

    

    Definitions

    

    1.1  “Assets”
      are defined as all of Hot Springs Resources’ right, title and interest in and to
      hydrocarbon substances, the tangibles and the miscellaneous interests insofar
      as
      and to the extent they pertain to the Burke Ranch Unit (Exhibit A) leases Held
      By Production, leases Held By Unit and adjacent leases (Exhibit B), Natrona
      County, Wyoming, including:

    

    (a)  any
      and
      all wells, well bores, and casing;

    (b)  any
      and
      all leases, leaseholds, contracts and agreements;

    (c)  any
      and
      all hydrocarbon substances produced after the Closing;

    (d)  any
      and
      all records, books, documents, licenses, reports and data; and

    (e)  any
      and
      all tangible depreciable property and assets, including pumping units, pumps,
      buildings, lines, tanks, treaters, and all other equipment used in the
      production of hydrocarbon substances at the Burke Ranch Unit.

    

    As
      part
      of the Assets to be conveyed to Ameriwest at Closing, Hot Springs Resources
      shall convey not less than a Working Interest of 95% at a 79.9% Net Revenue
      Interest in the Exhibit “A” acreage (inside Burke Ranch Unit), a Working
      Interest of 100% at an 82% Net Revenue Interest in the Exhibit “B” adjacent
      leases (outside the Burke Ranch Unit), and all of Hot Springs Resources’
interest, that being 100%, in and to any leasehold attached to or Held By Unit,
      other formations and hydrocarbon substances.

    

    “Assets”
      shall exclude, and Ameriwest shall not be purchasing or assuming, any
      liabilities of Hot Springs Resources whether related to the Assets or
      otherwise.

    

    1.2 “Field
      Development Commitments” are defined as Ameriwest’s written agreement to: (a)
      commit to invest a. minimum or $200,000.00 toward a work-over program and
      initiate, within 30 days after Closing, said program for the purposes of
      evaluating and re-establishing water flood production in the Burke Ranch Unit;
      and (b) commit to drill or cause to be drilled within three years after Closing
      a Pennsylvanian Tensleep test well within the Burke Ranch Unit or adjacent
      lands
      conveyed as part of the Assets subject to (i) economic conditions, governmental
      regulation and restrictions being favorable, in the sole opinion of Ameriwest,
      (ii) additional geological and geophysical information (whether developed by
      Ameriwest or acquired from third-parties) merit, in the sole opinion of
      Ameriwest, such a test well, and (iii) drilling rigs, equipment and
      infrastructure are available and prove cost effective for Ameriwest, in the
      sole
      opinion of Ameriwest.

    

    1.3 “Option
      Fee” is defined as $100,000.00, payable in two $50,000.00 installments and shall
      be credited against the Purchase Price if Closing occurs. The first installment
      of the Option Fee shall be paid by Ameriwest to Hot Springs Resources within
      5
      business days from the Execution Date. The second installment of the Option
      Fee
      shall he paid by Ameriwest to Hot Springs Resources on the 60th
      calendar
      day after the Execution Date. Except in the event of breach by Hot Springs
      Resources or as otherwise specifically stated in this Agreement, the Option
      Fee
      installments shall be non-refundable. To ensure that Hot Springs Resources
      can
      provide good and merchantable title for the Assets, Hot Springs Resources agrees
      to utilize the Option Fee to pay off and remove prior to Closing any voluntary
      or involuntary liens, encumbrances or accounts payable affecting the
      Assets.

    
      
        {13098/16064/CHARMON/1025179.DOC;}Ameriwest
          Energy Corp. / Hot Springs Resources, LTD.

        Exclusive
          Option to Purchase

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1.4 “Option
      Period” is defined as that period which commences on the Execution Date and ends
      at 5:00 Mountain Daylight Time on the 120th calendar day after the Execution
      Date.

    

    1.5 “Option
      Extension” is defined a Ameriwest’s option to extend the Option Period for 60
      additional calendar days, in consideration of Ameriwest’s payment to Hot Springs
      Resources in the amount of $100,000.00. Further, Ameriwest is granted the option
      to extend the Option Period for 2 additional 30 calendar day periods, in
      consideration of Ameriwest’s payment to Hot Springs Resources the sum of
      $100,000.00 for each additional 30 calendar day period. The parties agree that
      one-half (1/2) of all fees paid by Ameriwest pursuant to this paragraph to
      secure any Option Extension shall he credited against the Purchase Price at
      the
      time of Closing.

    

    1.6 “Purchase
      Price” is comprised of the following:

    a. For
      the
      Exhibit “A” acreage inside the Burke Ranch Unit at the Working and Net Revenue
      interests stated in Section 1.1 above, Ameriwest will pay the sum of
      $2,280,000.00;

    

    b. For
      the
      Exhibit “B” acreage outside the Burke Ranch Unit at the Working and Net Revenue
      Interests stated in Section 1.1 above, including acreage HBU (Held By Unit)
      and
      HBP (Held By Production), Ameriwest will pay the sum of
      $2,000,000.00;

    

    c. Ameriwest
      or its designee will transfer or issue 200,000 shares of common stock in
      Ameriwest to Robert Dungan, and 200,000 shares of common stack to Mike Zwickl
      for a total of 400,000 shares.

    

    1.7 “Closing”
      is defined as Ameriwest’s purchase of the Assets and payment of the remaining
      Purchase Price, which shall occur within 45 days after the timely exercise
      of
      Ameriwest’s option granted hereunder.

    

    1.8 Ameriwest
      will have 45 days from the date it notifies Hot Springs Resources in writing
      of
      its intention to exercise its option within which to conduct its due diligence
      on title and environmental related matters. Within said 45 day period, Ameriwest
      may terminate its obligation to purchase the Subject Property by written
      notification to Hot Springs Resources, if it identifies material title or
      environmental defects. Hot Springs Resources represents that it is not aware
      of
      any title defects associated with the Assets or Subject Property and does not
      believe there are any environmental defects with respect to the Assets or the
      Subject Property, outside of those customarily associated with normal oil field
      activities, which have been previously disclosed to Ameriwest and are
      represented by Hot Springs Resources to be non-material and minor. If Ameriwest
      terminates its option to purchase because of any material title or environmental
      defect, one half (1/2) of all Option Fee installments (including all payments
      made for any extension periods) shall be forfeited and retained by Hot Springs
      Resources and all remaining monies paid by Ameriwest will be immediately
      returned to Ameriwest.

    

    Section
      2. 

    

    Grant
      of Option.

    

    2.1 
      Subject
      to the terms of this Agreement, Hot Springs Resources hereby grants to Ameriwest
      and/or its assigns during the Option Period and any Option Extension the sole
      and exclusive option to purchase the Assets for payment of the Purchase Price
      and execution by Ameriwest of a written agreement to perform Field Development
      Commitments.

    
      
        {13098/16064/CHARMON/1025179.DOC;}Ameriwest
          Energy Corp. / Hot Springs Resources, LTD.

        Exclusive
          Option to Purchase

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      
        Section
          3. 

      

    

    

    Exercise
      of Option.

    

    3.1 If
      Ameriwest elects to exercise its option to purchase the Assets, Ameriwest shall
      provide written notice of its intent to Hot Springs Resources prior to the
      expiration of the Option Period or any Option Extension.

    

    
      
        Section
          4. 

      

    

    

    Maintenance
      Assets and Prohibition on Transfers.

    

    4.1 Hot
      Springs Resources agrees, during the Option Period and until Closing: (a) to
      maintain and preserve the Assets in at least as good condition as exists as
      of
      the Execution Date; (b) to fully comply with all requirements and demands of
      regulatory agencies pertaining to the Assets; (c) to promptly inform Ameriwest
      of any regulatory action, notices or demands affecting the Assets; (d) to keep
      the Unit properly bonded; (e) to keep all leases affecting any of the Assets
      in
      good standing; and (f) not to transfer any interest in any well, well bore,
      casing, lease, leasehold, mineral interest, royalty, contract, or other
      agreement related to the Assets.

    

    Section
      5. 

    

    Condition
      of Title at Closing.

    

    5.1 At
      Closing, Hot Springs Resources agrees: (a) to provide good and merchantable
      title, free and clear of any and any voluntary or involuntary liens or
      encumbrances related to or affecting the Assets; (b) to provide a bill of sale
      for the personal property associated with, or used in the production of, the
      Assets; and (c) to provide recordable assignments for the leasehold and to
      execute any such documents deemed necessary by Ameriwest to convey good and
      merchantable title to Ameriwest or its Assignee.

    

    Section
      6. 

    

    Post
      Closing Agreements.

    

    6.1 In
      the
      event Closing occurs, Hot Springs Resources will hold a five (5) percent working
      interest in the Exhibit “A” acreage inside the Burke Ranch Unit. However, the
      parties agree that if Closing occurs prior to January 1, 2009, then Hot Springs
      Resources will not be responsible for its participating five (5) percent working
      interest costs and expenses, including workover, engineering and maintenance
      costs incurred within the Exhibit “A” acreage inside the Burke Ranch Unit
      conveyed under this Agreement from the date of Closing until January 1, 2009.
      On
      and after January 1, 2009, Hot Springs Resources will be responsible for its
      full share of its proportionate share of all costs and expenses arising from
      its
      five (5) percent working interest.

    

    6.2 In
      the
      event Closing occurs, and subject to the. terms set forth in this section,
      Hot
      Springs Resources shall, for a period of three (3) years from the Closing Date,
      have an option to participate in any well drilled by Ameriwest located within
      the Exhibit “B” acreage at up to a fifty (50) percent working interest.
      Ameriwest agrees, during the three (3) year period, to give written notice
      to
      Hot Springs Resources of its intent to drill a well within the Exhibit “B”
acreage, and Hot Springs Resources will have sixty (60) calendar days after
      the
      date of the Ameriwest notice to make written election that it will participate
      and the amount of its intended participation. Upon executing appropriate
      confidentiality and non-disclosure agreements prepared by Ameriwest, Hot Springs
      Resources will be entitled to receive information and studies pertaining to
      the
      proposed well. Hot Springs Resources agrees to provide, upon request, Ameriwest
      with financial and other relevant information to evaluate the financial and
      business condition of Hot Springs Resources. Notwithstanding the foregoing,
      Ameriwest shall, at all times and regardless of the participation percentage
      of
      Hot Springs Resources, have the sole and final decision making authority as
      to
      all components and aspects of drilling and development, including the
      determination as to whether drilling will occur.

    
      
        {13098/16064/CHARMON/1025179.DOC;}Ameriwest
          Energy Corp. / Hot Springs Resources, LTD.

        Exclusive
          Option to Purchase

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    6.3 In
      the
      event Closing occurs, and subject to the terms set forth in this section, Hot
      Springs Resources shall, for a period of three (3) years from the Closing Date,
      have an option to participate in the purchase of new acreage immediately
      adjacent to the Exhibit “B” acreage at up to fifty (50) percent of the
      acquisition cost. Ameriwest agrees, during the three (3) year period, to give
      written notice to Hot Springs Resources of its intent to acquire new acreage
      immediately adjacent to the Exhibit “B” acreage, and Hot Springs Resources will
      have sixty (60) calendar days after the date of the Ameriwest notice to make
      written election that it will participate in the acquisition cost and the amount
      of its intended participation. Upon executing appropriate confidentiality and
      non-disclosure agreements prepared by Ameriwest, Hot Springs Resources will
      be
      entitled to receive information and studies pertaining to the acreage proposed
      to be acquired. Hot Springs Resources agrees to provide, upon request, Ameriwest
      with financial and other relevant information to evaluate the financial and
      business condition of Hot Springs Resources. Notwithstanding the foregoing,
      Ameriwest shall, at all times and regardless of the participation percentage
      of
      Hot Springs Resources, have the sole and final decision making authority as
      to
      whether the acquisition will be made. Hot Springs Resources and its partners
      and
      agents shall not, during the three (3) year period, compete with Ameriwest
      in
      any manner in regard to new acreage or mineral interests immediately adjacent
      to
      the Exhibit “B” acreage outside the Burke Ranch Unit, and shall refer all
      relevant information pertaining to new acreage or mineral interest prospects
      that are immediately adjacent to the Exhibit “B” acreage to
      Ameriwest.

    

    
      
        Section
          7. 

      

    

    

    Miscellaneous.

    

    7.1 Hot
      Springs Resources and Ameriwest agree to keep this Agreement confidential and
      not disclose the terms of this Agreement to any third party, except to the
      extent necessary for Ameriwest to comply with any of its disclosure
      requirements.

    

    
      	 	
              7.2

            	
              Any
                notices to be given hereunder shall he sent to the
                following:

            

    

    

    Hot
      Springs Resources:         Robert
      Dungan, President

    Mike
      Zwickl, Partner 

    Hot
      Springs Resources, LTD.

    124
      North
      Lincoln Street

    Casper,
      WY 82601

    

    Ameriwest:              Walter
      R.
      Merschat, President 

    Ameriwest
      Energy Corp.

    123
      West
      1st Street Suite 215

    Casper,
      WY 82601

    

    7.3 This
      Agreement and its terms shall not he modified or terminated except by a written
      agreement duly executed by the parties.

    

    7.4 Ameriwest
      may assign any or all of its interest under this Agreement, but shall provide
      written notice to Hot Springs Resources of any assignment.

    

    7.5 Hot
      Springs Resources may assign any or all of its interest under this Agreement,
      but shall provide written notice to Ameriwest of any assignment.

    

    7.6 This
      Agreement shall he governed by and construed under the laws of the State of
      Wyoming.

    

    7.7 The
      parties acknowledge that Walter R. Merschat holds an ownership interest related
      to the Assets and hereby state that full disclosure of said interest has been
      made to the parties.

    
      
        {13098/16064/CHARMON/1025179.DOC;}Ameriwest
          Energy Corp. / Hot Springs Resources, LTD.

        Exclusive
          Option to Purchase

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    DATED
      AND
      EFFECTIVE ON THE DATE FIRST SHOWN ABOVE.

     

    

      
        	 	
                HOT
                  SPRINGS RESOURCES, LTD:

              	 	 	
                AMERIWEST
                  ENERGY CORP.

              
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	
                _________________________________

              	 	
                By:

              	
                _________________________________

              
	 	
                Robert
                  Dungan, President

              	 	 	
                Walter
                  R. Merschat, President & CEO

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                By:

              	
                _________________________________

              	 	
                By:

              	
                _________________________________

              
	 	
                Mike
                  Zwickl, Partner

              	 	 	
                Jon
                  C. Nicolaysen, Director

              
	 	 	 	 	 

      

    

     

     

    
      
        {13098/16064/CHARMON/1025179.DOC;}Ameriwest
          Energy Corp. / Hot Springs Resources, LTD.

        Exclusive
          Option to Purchase

        
        

      

      
        5

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