Document:

Exhibit 10.2

 

OCCIDENTAL PETROLEUM CORPORATION

2005 LONG-TERM INCENTIVE PLAN

TOTAL SHAREHOLDER RETURN INCENTIVE AWARD AGREEMENT

(Equity-based, Equity and Cash-settled Award)

 

	
  GRANTEE:

  	
  «First» «Last»

  
	
   

  	
   

  
	
  DATE OF GRANT:

  	
  July 16,
  2008

  
	
   

  	
   

  
	
  TARGET PERFORMANCE SHARES:

  	
  «TSRShares»

  
	
   

  	
   

  
	
  PERFORMANCE PERIOD:

  	
  July 16, 2008 through July 15, 2012

  

 

 

THIS AGREEMENT (this “Agreement”)
is made as of the Date of Grant between OCCIDENTAL PETROLEUM CORPORATION, a
Delaware corporation (“Occidental” and, with its subsidiaries, the “Company”),
and Grantee.

 

1.                                     GRANT OF TARGET PERFORMANCE SHARES.  In accordance with this Agreement and the
Occidental Petroleum Corporation 2005 Long-Term Incentive Plan, as the same may
be amended from time to time (the “Plan”), Occidental grants to the Grantee as
of the Date of Grant, the right to receive one-half in Shares and one-half in
cash up to 150% of the number/value of Target Performance Shares.  For the purposes of this Agreement, “Target
Performance Shares” means a bookkeeping entry that records the equivalent of
Shares awarded pursuant to Section 4.2 of the Plan that is payable upon
the achievement of the Performance Goal. Target Performance Shares are not
Shares and have no voting rights or, except as stated in Section 6,
dividend rights.

 

2.                                     RESTRICTIONS ON TRANSFER.  Neither this Agreement nor any right to
receive Shares or cash pursuant to this Agreement may be transferred or
assigned by the Grantee other than (i) to a beneficiary designated on a
form approved by the Company (if enforceable under local law), by will or, if
the Grantee dies without designating a beneficiary of a valid will, by the laws
of descent and distribution, or (ii) pursuant to a domestic relations
order, if applicable, (if approved or ratified by the Committee).

 

3.                                     PERFORMANCE GOAL.  The Performance Goal for the Performance
Period is a peer company comparison based on Total Shareholder Return (defined
as Total Stockholder Return in the Plan), as set forth on Exhibit 1.  Total Shareholder Return shall be calculated
for each peer company using the average of its last reported sale price per
share of common stock on the New York Stock Exchange - Composite Transactions
for the last ten trading days preceding July 16, 2008 and the average of
its last reported sale price per share of common stock on the New York Stock
Exchange - Composite Transactions for the last ten trading days preceding July 15,
2012.  The peer companies are: Anadarko
Petroleum Corporation, Apache Corporation, BP p.l.c., Chevron Corporation,
ConocoPhillips, Devon Energy Corporation, ExxonMobil Corporation and Royal
Dutch Shell plc.  If a peer company
ceases to be a publicly-traded company at any time during the Performance
Period or the Committee determines pursuant to Section 7 of this Agreement
to reflect a change in circumstances with respect to any peer company, then
such company will be removed as a peer company and the achievement of the
Performance Goal will be determined with respect to the remaining peer
companies as set forth on Exhibit 1.

 

 

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4.                                     VESTING AND FORFEITURE OF TARGET PERFORMANCE SHARES.  (a) The Grantee must remain in the
continuous employ of the Company through the last day of the Performance Period
to receive payment of this award.  The
continuous employment of the Grantee will not be deemed to have been
interrupted by reason of the transfer of the Grantee’s employment among the
Company and its affiliates or an approved leave of absence.  However, if, prior to the end of the Performance
Period, the Grantee dies or becomes permanently disabled while in the employ of
the Company and terminates as a result thereof, retires with the consent of the
Company, or terminates employment for the convenience of the Company (each of
the foregoing, a “Forfeiture Event”), then the number of Target Performance
Shares upon which the Grantee’s award is based will be reduced on a pro rata
basis based upon the number of days remaining in the Performance Period
following the date of the Forfeiture Event. 
If the Grantee terminates employment voluntarily or is terminated for
cause before the end of the Performance Period, then this Agreement will
terminate automatically on the date of Grantee’s termination and Grantee shall
forfeit the right to receive any Shares or cash hereunder.

 

(b) The Grantee’s right to
receive payment of this award in an amount not to exceed 150% of the Target
Performance Shares, rounded up to the nearest whole share, will be based on,
and become nonforfeitable upon the Committee’s certification of, the attainment
of the Performance Goal.

 

(c) Notwithstanding Section 4(b),
if a Change in Control event occurs prior to the end of the Performance Period,
the Grantee’s right to receive payment at the Target Performance Share level
(as adjusted for any Forfeiture Event pursuant to Section 4(a)) will
become nonforfeitable.  The right to
receive Shares and cash in excess of the Target Performance Share level (as
adjusted for any Forfeiture Event pursuant to Section 4(a)) will be
forfeited.

 

5.                                     PAYMENT OF AWARDS.  The Target Performance Shares as adjusted
pursuant to Sections 4 and 7 of this Agreement will be settled 50% in Shares
and 50% in cash.  The cash payment will
equal the closing price of the Shares on the New York Stock Exchange on the
date of the Committee’s certification (the “Certification Date Value”) of the
attainment of the Performance Goal multiplied by 50% of the Target Performance
Shares earned at the Performance Goal level attained and will be paid as
promptly as possible after such date. 
The Shares covered by this Agreement or any prorated portion thereof
shall be issued to the Grantee as promptly as practicable after the Committee’s
certification of the attainment of the Performance Goal or the Change in
Control event, as the case may be.  Each
of the cash payment and the Shares shall in any event be made no later than the
15th day of the third month following the end of the first taxable
year in which the award is no longer subject to a substantial risk of
forfeiture.

 

6.                                     CREDITING AND PAYMENT OF DIVIDEND EQUIVALENTS.  With respect to the number of Target
Performance Shares listed above, the Grantee will be credited on the books and
records of Occidental with an amount (the “Dividend Equivalent”) equal to the
amount per share of any cash dividends declared by the Board on the outstanding
Shares as and when declared during the period beginning on the Date of Grant
and ending with respect to any portion of the Target Performance Shares covered
by this Agreement on the date on which the Grantee’s right to receive such
portion becomes nonforfeitable, or, if earlier, the date on which the Grantee
forfeits the right to receive such portion. 
Occidental will pay in cash to the Grantee an amount equal to the Dividend
Equivalents credited to such Grantee as promptly as may be practicable after
the Grantee has been credited with a Dividend Equivalent.

 

 

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7.                                     ADJUSTMENTS.

(a)                                             The number
of Target Performance Shares or kind of shares of stock covered by this
Agreement shall be adjusted as the Committee determines pursuant to Section 7.2
of the Plan in order to prevent dilution or expansion of the Grantee’s rights
under this Agreement as a result of events such as stock dividends, stock
splits or other changes in the capital structure of Occidental, or any merger,
consolidation, spin-off, liquidation or other corporate transaction having a
similar effect.  If any such adjustment
occurs, the Company will give the Grantee written notice of the adjustment.

 

(b) In addition, the
Committee may adjust the Performance Goal or other features of this Grant as
permitted by Section 5.2.3 of the Plan.

 

8.                                     NO EMPLOYMENT CONTRACT.  Nothing in this Agreement confers upon the
Grantee any right with respect to continued employment by the Company, nor
limits in any manner the right of the Company to terminate the employment or
adjust the compensation of the Grantee. 
Unless otherwise agreed in a writing signed by the Grantee and an
authorized representative of the Company, the Grantee’s employment with the
Company is at will and may be terminated at any time by the Grantee or the
Company.

 

9.                                     TAXES AND WITHHOLDING.  The Grantee is responsible for any federal,
state (including, as required by applicable law, the state in which the Grantee
resides on the Grant Date and the states in which the Grantee resides during
the vesting period), local or foreign tax, including income tax, social
insurance, payroll tax, payment on account or other tax-related withholding
with respect to the grant of Target Performance Shares (including the grant,
the vesting, the receipt of Shares or cash, the sale of Shares and the receipt
of dividends or Dividend Equivalents, if any). 
If the Company must withhold any tax in connection with the issuance of
any Shares or the payment of cash or any other consideration pursuant to the
grant of Target Performance Shares (other than the payment of Dividend
Equivalents), the Grantee shall satisfy all or any part of any such withholding
obligation equally from any cash amount payable under this Agreement and, from
the Shares that are issued or transferred to the Grantee pursuant to this
Agreement, unless the Grantee otherwise instructs the Company in writing not
less than thirty (30) days prior to the end of the Performance Period.  Any Shares so surrendered by the Grantee
shall be credited against the Grantee’s withholding obligation at their
Certification Date Value.  If the Company
must withhold any tax in connection with granting of Target Performance Shares
or the payment of Dividend Equivalents pursuant to this grant of Target
Performance Shares, the Grantee by acknowledging this Agreement agrees that, so
long as the Grantee is an employee of the Company for tax purposes, all or any
part of any such withholding obligation shall be deducted from the Grantee’s
wages or other cash compensation (including Dividend Equivalents).  The Grantee shall pay to the Company any
amount that cannot be satisfied by the means previously described.

 

10.                              COMPLIANCE WITH LAW.  The Company will make reasonable efforts to
comply with all applicable federal, state and foreign securities laws; however,
the Company will not issue any Shares or other securities pursuant to this
Agreement if their issuance would result in a violation of any such law.  However, if it is not feasible for the
Company to comply with such laws with respect to the grant or settlement of
these awards, then the awards may be cancelled without any compensation or
additional benefits provided to Grantee as a result of the cancellation.

 

11.                              RELATION TO OTHER BENEFITS.  The benefits received by the Grantee under
this Agreement will not be taken into account in determining any benefits to
which the Grantee may be entitled under any profit sharing, retirement or other
benefit or compensation plan maintained

 

 

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by the Company, including the amount of any life
insurance coverage available to any beneficiary of the Grantee under any life
insurance plan covering employees of the Company.  Additionally, the Target Performance Shares
are not part of normal or expected compensation or salary for any purposes,
including, but not limited to calculation of any severance, resignation,
termination, redundancy, end of service payments, bonuses or long-service
awards.  This grant of Target Performance
Shares does not create any contractual or other right to receive future grants
of Target Performance Shares, or benefits in lieu of Target Performance Shares,
even if Grantee has a history of receiving Target Performance Shares or other
stock or cash awards.

 

12.                              AMENDMENTS.  The Plan may
be modified, amended, suspended or terminated by the Board at any time, as
provided in the Plan.  Any amendment to
the Plan will be deemed to be an amendment to this Agreement to the extent it
is applicable to this Agreement; however, no amendment will adversely affect
the rights of the Grantee under this Agreement without the Grantee’s consent.

 

13.                              SEVERABILITY.  If one or
more of the provisions of this Agreement is invalidated for any reason by a
court of competent jurisdiction, the invalidated provisions shall be deemed to
be separable from the other provisions of this Agreement, and the remaining
provisions of this Agreement will continue to be valid and fully enforceable.

 

14.                              ENTIRE
AGREEMENT; RELATION TO PLAN;
INTERPRETATION.  Except as
specifically provided in this Section, this Agreement and the Attachments
incorporated in this Agreement constitute the entire agreement between the
Company and the Grantee with respect to this Total Shareholder Return Incentive
Award.  This Agreement is subject to the
terms and conditions of the Plan.  In the
event of any inconsistent provisions between this Agreement and the Plan, the
provisions of the Plan control. 
Capitalized terms used in this Agreement without definition have the
meanings assigned to them in the Plan. 
References to Sections and Attachments are to Sections of, and
Attachments incorporated in, this Agreement unless otherwise noted.

 

15.                              SUCCESSORS AND ASSIGNS.  Subject to Sections 2 and 4, the provisions
of this Agreement shall be for the benefit of, and be binding upon, the
successors, administrators, heirs, legal representatives and assigns of the
Grantee, and the successors and assigns of the Company.

 

16.                              GOVERNING LAW.  The laws of
the State of Delaware govern the interpretation, performance, and enforcement
of this Agreement.

 

17.                              PRIVACY RIGHTS.  By
accepting this Total Shareholder Return Incentive Award, the Grantee explicitly
and unambiguously consents to the collection, use and transfer, in electronic
or other form, of the Grantee’s personal data as described in this Agreement by
and among, as applicable, the Company and its affiliates for the exclusive
purpose of implementing, administering and managing the Grantee’s participation
in the Plan.  The Company holds or may
receive from any agent designated by the Company certain personal information
about the Grantee, including, but not limited to, the Grantee’s name, home
address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or
directorships held in the Company, details of this Total Shareholder Return
Incentive Award or any other entitlement to shares of stock awarded, canceled,
exercised, vested, unvested or outstanding in the Grantee’s favor, for the
purpose of implementing, administering and managing the Plan, including
complying with applicable tax

 

 

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and securities laws (“Data”).  Data may be transferred to any third parties
assisting in the implementation, administration and management of the
Plan.  These recipients may be located in
the Grantee’s country or elsewhere, and may have different data privacy laws
and protections than the Grantee’s country. 
By accepting this Agreement, the Grantee authorizes the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other
form, for the purposes described above. 
The Grantee may, at any time, view Data, request additional information
about the storage and processing of Data, require any necessary amendments to
Data or refuse or withdraw the consents herein, in any case without cost, by
contacting the Committee in writing. 
Refusing or withdrawing consent may affect the Grantee’s ability to
participate in the Plan.

 

18.                              ELECTRONIC DELIVERY.  The Company may, in its sole discretion,
decide to deliver any documents related to this Total Shareholder Return
Incentive Award granted under the Plan or future awards that may be granted
under the Plan (if any) by electronic means or to request the Grantee’s consent
to participate in the Plan by electronic means. 
The Grantee hereby consents to receive such documents by electronic
delivery and, if requested, to participate in the Plan through an on-line or
electronic system established and maintained by the Company or another third
party designated by the Company.

 

19.                              GRANTEE’S REPRESENTATIONS AND RELEASES.  By accepting this Total Shareholder Return
Incentive Award, the Grantee acknowledges that the Grantee has read this
Agreement and understands that (i) the grant of this Total Shareholder
Return Incentive Award is made voluntarily by Occidental in its discretion with
no liability on the part of any of its direct or indirect subsidiaries and
that, if the Grantee is not an employee of Occidental, the Grantee is not, and
will not be considered, an employee of Occidental but the Grantee is a third
party (employee of a subsidiary) to whom this Total Shareholder Return
Incentive Award is granted; (ii) the Grantee’s participation in the Plan
is voluntary; (iii) the future value of any Shares issued pursuant to this
Total Shareholder Return Incentive Award cannot be predicted and Occidental
does not assume liability in the event such Shares have no value in the future;
and (iv) subject to the terms of any tax equalization agreement between
the Grantee and the entity employing the Grantee, the Grantee will be solely responsible
for the payment or nonpayment of taxes imposed or threatened to be imposed by
any authority of any jurisdiction.

 

In consideration of the grant of this Total
Shareholder Return Incentive Award, no claim or entitlement to compensation or
damages shall arise from termination of this Total Shareholder Return Incentive
Award or diminution in value of this Total Shareholder Return Incentive Award
or Shares issued pursuant to this Total Shareholder Return Incentive Award
resulting from termination of the Grantee’s employment by the Company (for any
reason whatsoever) and, to the extent permitted by law, the Grantee irrevocably
releases the Company from any such claim that may arise; if, notwithstanding
the foregoing, any such claim is found by a court of competent jurisdiction to
have arisen, then, by accepting this Agreement, the Grantee shall be deemed
irrevocably to have waived his or her entitlement to pursue such claim.

 

By accepting this Total Shareholder Return Incentive
Award, the Grantee agrees, to the extent not contrary to applicable law, to the
General Terms of Employment set out on Attachment 1 and the Arbitration
Provisions set out on Attachment 2, which, in each case, are incorporated in
this Agreement by reference.

 

20.                              RELATION TO EMPLOYMENT AGREEMENT.  In the event of any inconsistent provisions
between this Agreement and any employment agreement between the Grantee and the
Company, the provisions of this Agreement control except with respect to
Attachment 2

 

 

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Arbitration Provisions.

 

21.                              COMPLIANCE WITH SECTION 409A OF THE INTERNAL REVENUE CODE.  Notwithstanding anything to the contrary
contained in this Agreement, to the extent that the Board determines that the
Plan or this award is subject to Section 409A of the Code and fails to
comply with the requirements of Section 409A of the Code, the Board
reserves the right (without any obligation to do so) to amend or terminate the
Plan and/or amend, restructure, terminate or replace this award in order to
cause this award to either not be subject to Section 409A of the Code or
to comply with the applicable provisions of such section.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed on its behalf by its duly
authorized officer and Grantee has also executed this Agreement in duplicate.

 

	
   

  	
  OCCIDENTAL
  PETROLEUM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

 

                                                The
undersigned Grantee hereby accepts this Total Shareholder Return Incentive
Award, subject to the terms and conditions of the Plan and the terms and
conditions set forth in this Agreement.

 

	
   

  	
   

  	
   

  
	
   

  	
  Grantee

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
				

 

 

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EXHIBIT 1

2005 Long-Term Incentive Plan

2008 Total Shareholder Return Incentive Award

 

Example of Total Shareholder Return
Payout Calculations

 

Step 1:  Order Peer
Companies by TSR values (excluding Oxy) highest to lowest, assign ordinal
values starting at lowest value

 

	
  Peer

  	
   

  	
  TSR

  	
   

  	
  Ordinal

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Value

  	
   

  	
  Value

  	
   

  
	
  A

  	
   

  	
   

  	
  313.4

  	
   

  	
  8

  	
   

  
	
  B

  	
   

  	
   

  	
  300.4

  	
   

  	
  7

  	
   

  
	
  C

  	
   

  	
   

  	
  264.2

  	
   

  	
  6

  	
   

  
	
  D

  	
   

  	
   

  	
  257.0

  	
   

  	
  5

  	
   

  
	
  E

  	
   

  	
   

  	
  253.8

  	
   

  	
  4

  	
   

  
	
  F

  	
   

  	
   

  	
  242.0

  	
   

  	
  3

  	
   

  
	
  G

  	
   

  	
   

  	
  196.3

  	
   

  	
  2

  	
   

  
	
  H

  	
   

  	
   

  	
  136.1

  	
   

  	
  1

  	
   

  

 

Step 2:  Calculate bottom 1/3
threshold

 

n = number of companies (excluding Oxy) = 8

q = (n — 1) x (0.33) = (8 — 1) x (0.33) = 2.31

j = integer portion of q = 2

g = noninteger portion of q = 0.31

Bottom 1/3 = [(1 — g) x ordinal value(j+1)] + [(g) x
ordinal value(j+2)]

= [(1 — g) x (3rd ordinal value)] + [(g) x
(4th ordinal value)]

= [(1 — 0.31) x (242.0)] + [(0.31) x (253.8)]

= 245.7

 

Step 3:  Calculate top 1/3 threshold

 

n = number of companies (excluding Oxy) = 8

q = (n — 1)(0.67) = (8 - 1)(0.67) = 4.69

j = integer portion of q = 4

g = noninteger portion of q = 0.69

Top 1/3 = [(1 — g) x ordinal value(j+1)] + [(g) x
ordinal value(j+2)]

= [(1 — g) x (5th ordinal value)] + [(g) x
(6th ordinal value)]

= [(1 — 0.69) x (257.0)] + [(0.69) x (264.2)]

= 262.0

 

 

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Step 4:  Calculate payout for a
specific Oxy TSR result (with payout limited to 150%)

 

If Oxy TSR result is less than or equal to bottom 1/3 then
payout = 0%

 

Example: if Oxy
TSR = 240.0, then payout = 0%

 

If Oxy TSR result is greater than or equal to top 1/3, then
payout = 150%

 

Example: if Oxy
TSR = 290.3, then payout = 150%

 

If Oxy TSR is between bottom 1/3 and top 1/3 then linearly
interpolate as follows:

 

Payout = [(Oxy TSR - bottom 1/3 threshold) ÷ spread between
top 1/3 and bottom 1/3] x 150%

 

Example: if Oxy
TSR = 255.5, then payout

= [(255.5 — 245.7) ÷ (262.0 — 245.7)] x 150%

= 90%

 

 

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Attachment 1

 

General Terms of Employment

 

A.                                   Except as
otherwise required by law or legal process, the Grantee will not publish or
divulge to any person, firm, corporation or institution and will not use to the
detriment of Occidental, or any of its subsidiaries or other affiliates, or any
of their respective officers, directors, employees or stockholders
(collectively, “Occidental Parties”), at any time during or after the Grantee’s
employment by any of them, any trade secrets or confidential information of any
of them (whether generated by them or as a result of any of their business
relationships), including such information as described in Occidental’s Code of
Business Conduct and other corporate policies, without first obtaining the
written permission of an officer of the Company.

 

B.                                   At the
time of leaving employment with the Company, the Grantee will deliver to the
Company, and not keep or deliver to anyone else, any and all credit cards,
drawings, blueprints, specifications, devices, notes, notebooks, memoranda,
reports, studies, correspondence and other documents, and, in general, any and
all materials relating to the Occidental Parties (whether generated by them or
as a result of their business relationships), including any copies (whether in
paper or electronic form), that the Grantee has in the Grantee’s possession or
control.

 

C.                                   The
Grantee will, during the Grantee’s employment by the Company, comply with the
provisions of Occidental’s Code of Business Conduct.

 

D.                                   Except as
otherwise required by the Grantee’s job or permitted by law, the Grantee will
not make statements about any Occidental Parties (1) to the press, to the electronic
media, to any part of the investment community, to the public, or to any person
connected with, employed by or having a relationship with any of them without
permission of an officer of the Company or (2) that are derogatory,
defamatory or negative.  Nothing herein,
however, shall prevent Grantee from making a good faith report or complaint to
appropriate governmental authorities.  To
the fullest extent permitted by law, Grantee will not interfere with or disrupt
any of the Company’s operations or otherwise take actions intended directly to
harm any of the Occidental Parties.

 

E.                                   All
inventions, developments, designs, improvements, discoveries and ideas that the
Grantee makes or conceives in the course of employment by the Company, whether
or not during regular working hours, relating to any design, article of
manufacture, machine, apparatus, process, method, composition of matter,
product or any improvement or component thereof, that are manufactured, sold,
leased, used or under development by, or pertain to the present or possible
future business of the Company shall be a work-for-hire and become and remain
the property of Occidental, its successors and assigns.

 

The provisions of this Section do
not apply to an invention that qualifies fully under the provisions of Section 2870
of the California Labor Code, which provides in substance that provisions in an
employment agreement providing that an employee shall assign or offer to
assign rights in an invention to his or her employer do not apply to an
invention for which no equipment, supplies, facilities, or trade secret information
of the employer was used and which was developed entirely on the employee’s
own time, except for those inventions that either (a) relate, at the time
of conception or reduction to practice of the invention, (1) to the
business of the employer or (2) to the employer’s actual or demonstrably
anticipated research or development, or (b) result from any work performed
by the employee for the employer.

 

 

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F.                                    The
foregoing General Terms of Employment are not intended to be an exclusive list
of the employment terms and conditions that apply to the Grantee.  The Company, in its sole discretion, may at
any time amend or supplement the foregoing terms.  The Grantee’s breach of the foregoing General
Terms of Employment will entitle the Company to take appropriate disciplinary
action, including, without limitation, reduction of the Total Shareholder
Return Incentive Award granted pursuant to this Agreement and termination of
employment.

 

 

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Attachment 2

 

Arbitration Provisions

 

Any dispute arising out of or in any way related to
the Grantee’s employment with the Company, or the termination of that
employment, will be decided exclusively by final and binding arbitration
pursuant to any procedures required by applicable law.  To the extent not inconsistent with
applicable law, any arbitration will be submitted to American Arbitration
Association (“AAA”) and subject to AAA Employment Arbitration Rules and
Mediation Procedures in effect at the time of filing of the demand for
arbitration.  Only the following claims
are excluded from this Agreement: (1) claims for workers’ compensation,
unemployment compensation, or state disability benefits, and claims based upon
any pension or welfare benefit plan the terms of which contain an arbitration
or other non-judicial dispute resolution procedure, (2) to the extent
permitted by applicable law, claims for provisional remedies to maintain the
status quo pending the outcome of arbitration, (3) claims based on employee
compensation award agreements and incentive plans and (4) claims which are
not permitted by applicable law to be subject to a binding pre-dispute
arbitration agreement.

 

Any controversy regarding whether a particular dispute
is subject to arbitration under this Section shall be decided by the
arbitrator.

 

To the extent required under applicable law, the
Grantee’s responsibility for payment of the neutral arbitrator’s fees and
expenses shall be limited to an amount equal to the filing fee that would be
required for a state trial court action and the Company shall pay all remaining
fees and expenses of the arbitrator. 
Unless otherwise required under applicable law, the parties shall each
pay their pro rata share of the neutral arbitrator’s expenses and fees.  Any controversy regarding the payment of fees
and expenses under this arbitration provision shall be decided by the
arbitrator.

 

The arbitrator may award any form of remedy or relief
(including injunctive relief) that would otherwise be available in court.  Any award pursuant to said arbitration shall
be accompanied by a written opinion of the arbitrator setting forth the reason
for the award.  The award rendered by the
arbitrator shall be conclusive and binding upon the parties hereto, and
judgment upon the award may be entered, and enforcement may be sought in, any
court of competent jurisdiction. To the extent not inconsistent with applicable
laws, the arbitrator will have the authority to hear and grant motions.

 

 

11 of 11CONTRACT FOR THE SALE AND

EXHIBIT 10.1

CONTRACT FOR THE SALE AND

PURCHASE OF REAL ESTATE

This CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE (hereinafter referred to as “Contract”) is made and entered into this the 15th day of July, 2008, by and between Picture Window, LLC, a Mississippi Limited Liability Company, (hereinafter referred to collectively as “Seller”) and MYRIAD WORLD RESORTS OF TUNICA, LLC, a Mississippi limited liability company, (hereinafter referred to as “Purchaser”), collectively referred to as “Parties”.  MYRIAD ENTERTAINMENT AND RESORTS, INC. (“Myriad Entertainment”) and Kenneth M. Murphree, LLC, a Mississippi Limited Liability Company, joins in solely and only for the express purposes listed and outlined herein.

WHEREAS, Purchaser is in the process of planning a destination resort and casino facility to be located in Tunica County, Mississippi; and,

WHEREAS, Purchaser has identified property owned by the Seller as a suitable location for the planned developed; and, 

WHEREAS, Purchaser and Seller have reached an agreement relating to the sale and purchase of the proposed site for the development which proposed site is more fully described herein; and, 

WHEREAS, the parties desire to reduce their agreement and understanding to writing and do hereby do so; 

Now therefore, for and in consideration of the mutual covenants, conditions and promises contained herein, the parties do hereby agree and contract as follows:

WITNESSETH:

1.

Property: Seller hereby agrees to sell and Purchaser hereby agrees to purchase the following described property in Tunica County, Mississippi, to wit:

The fractional North Half (N 1⁄2) and accretions of Section Ten (10),  Township Three (3) South, Range Eleven (11) West; and,   

The Northwest Quarter (NW 1/4), North of Levee, of Section Eleven (11),  in Township Three (3) South, Range Eleven (11) West.

(hereinafter the “Property”).  The Property is depicted on the attached Exhibit “F”.

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2.

Purchase Price:  Purchaser shall pay Seller for the Property US $36,000,000 plus amounts based on percentage payments or minimum annual payments (“Additional Payments”) as set forth below. All payments shall be in cash or certified funds via wire transfer.

The cash portion of the purchase price shall be paid as follows:

A.

US $100,000 in cash or via wire transfer shall be paid by Purchaser to Seller on or before July 24, 2008;

B.

US $100,000 in cash or via wire transfer shall be paid by Purchaser to Seller on or before August 15, 2008;

C.

US $100,000 in cash or via wire transfer shall be paid by Purchaser to Seller on or before September 15, 2008;

D.

US $100,000 in cash or via wire transfer shall be paid by Purchaser to Seller on or before October 15, 2008;

E.

US $100,000 in cash or via wire transfer shall be paid by Purchaser to Seller on or before November 15, 2008; and

F.

US $35,500,000 in cash or via wire transfer shall be paid by Purchaser to Seller at Closing.

The above Cash Payment listed in paragraph A shall be paid directly to Seller and shall not be held in trust.  The above Cash Payment listed in paragraphs B-E shall be delivered to Dulaney Law Firm, L.L.P. to be held pursuant to the Escrow Agreement and applied to the Purchase Price at closing.  Each of the payments, individually and collectively, made pursuant to subparagraphs B-E shall hereinafter be referred to as “earnest money.”  Earnest money shall not include the payment made directly to Seller in subparagraph A above.  The payment referenced by paragraph F shall be paid directly to Seller at closing.  Subject to the provisions contained in this Contract, in the event that Purchaser fails to timely make the payments set forth above, then Seller may terminate this Contract by sending written notice to Purchaser stating that the Purchaser is in default.  If Purchaser does not make the required payment within ten (10) days of written notice by Seller to Purchaser, then the Contract shall be deemed terminated.  In this event, Seller shall retain any monies previously paid to it and any money held pursuant to the Escrow Agreement shall be distributed to Seller.  Purchaser agrees to execute documents reasonably necessary to reflect such termination.

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The percentage portion of the purchase price shall be paid as follows:

Purchaser intends to develop a destination resort on the Property.  With regard to the casino portion of the development by Purchaser or Myriad Entertainment on the Property, Purchaser agrees to pay to Seller, for the time period specified below, an amount equal to two percent (2%) of the "Gross Gaming Revenue" derived from any and all gaming or gambling activities conducted on the Property (whether the gaming is conducted by Myriad or any other party) (the “Percentage Payment”).

Gross Gaming Revenue is hereby defined by  §75-76-5(p) of the Mississippi Code of 1972, as amended, as now written or as may be modified by the State of Mississippi in the future.  A copy of §75-76-5(p) of the Mississippi Code of 1972, as amended is attached hereto as Exhibit “A”. 

The Percentage Payment or Minimum Annual Payment shall be payable to Seller and Kenneth M. Murphree, LLC (the basis and amount of Kenneth M. Murphree, LLC payments, which are to be made by Purchaser in addition to any payments made to Seller, are set forth in paragraph 18 below) as follows:

The First and Second Payments

(i)

The first payment shall be made on or before the 15th day of the month immediately following the six calendar month period which begins on the first day of the month immediately following the month in which gaming operations commenced.  For example, if gaming operations commence April 14, the six month period begins on May 1 and ends on October 31.  The first payment would thus be due on or before November 15.  

The first payment shall cover the entire period from the start of gaming operations through the end of the six month period.  Purchaser shall include a copy of the statements sent to the Mississippi Gaming Commission setting forth Gross Gaming Revenue for each of the months included.  If payment is based on Minimum Annual Payment rather than Percentage Payment, then the month in which gaming operations begins shall be prorated according to days in that month.

(ii)

The second payment shall be made on or before the 15th day of the month immediately following the six month period which begins on the first day of the month following the end of the first six month period.  Based on the example in (i) above, the second six month period would begin November 1 and end on April 30.  The second payment would thus be due on May 15.  Purchaser shall include a copy of the statements sent to the Mississippi Gaming Commission setting forth Gross Gaming Revenue for each of the months included.  

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Payments After the First and Second Payments

Thereafter, Purchaser shall make payments as follows:

(i)

On or before the first day of the month immediately following payment of the second payment above and on or before the first day of each month thereafter, Purchaser shall pay Seller 1/12 of the Minimum Annual Payment amount and 6% of 1/12 of the Minimum Annual Payment to Kenneth M. Murphree, LLC. 

(ii)

On or before the 20th day of month immediately following payment of the second payment above and on or before the 20th day of each month thereafter, Purchaser shall pay Seller and Kenneth M. Murphree, LLC any Percentage Payment due to each based on the previous month’s Gross Gaming Revenue.  Such payment shall be calculated by multiplying Gross Gaming Revenue by the applicable percentage and subtracting the 1/12 Minimum Annual Payment (or 6% of 1/12 Minimum Annual Payment for Kenneth M. Murphree, LLC) amount paid in (i) above. If that calculation is 0 or less, then no Percentage Payment is due for that month.  Purchaser shall include a copy of the statements sent to the Mississippi Gaming Commission setting forth Gross Gaming Revenue for the month.   

(iii)

If, during the applicable Full Year of Gaming Operations, Purchaser has paid an amount that equals or exceeds the Minimum Annual Payment for that Full Year of Gaming Operations, then Purchaser will only make the Percentage Payment, if any, set forth in (ii) above.

(iv)

Due to the timing of payments, it may be possible that in any given Full Year of Gaming Operations, Purchaser makes more in Additional Payments than would otherwise be due in that Full Year of Gaming Operations.  In that event, Purchaser is entitled to offset such overpayment against payments due in the next Full Year of Gaming Operations.  In no event shall Seller, or Kenneth M. Murphree, LLC be obligated to repay any monies to Purchaser.  For example, if during the 1st Year of Full Gaming Operations, Purchaser paid Seller $2.2 million of Additional Payments, but Gross Gaming Revenue totaled $100,000,000, then Purchaser would have overpaid Seller for that year by the amount of $200,000.  Purchaser would then deduct that amount against Additional Payments due in the next Full Year of Gaming Operations until that amount was recovered.

The Additional Payments shall continue for a total of 25 years commencing on the earlier of the start of gaming operations on the Property or January 1, 2011.  

Beginning on the earlier of January 1, 2011 or the start of gaming operations on the Property, and for 25 years thereafter, Purchaser shall pay to Seller the greater of the 

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Percentage Payment or the Minimum Annual Payment (as defined herein).  The Minimum Annual Payment is defined as follows:

Full Year of Gaming Operation:

Minimum Annual Payment:

1st Year

$2,000,000

2nd Year

$2,500,000

3rd Year

$3,000,000

4th Year

$3,500,000

5th Year through 25th Year

$4,000,000

All rights granted herein by this paragraph 2 are assignable, subject to Gaming Commission approval and Paragraph 25.

 3.

Closing Date:  This transaction shall close on or before Tuesday, December 2, 2008 at 1:00 p.m. (the “Closing Date”) at  Dulaney Law Firm, L.L.P., 986 Harris Street, P.O. Box 188, Tunica, MS  38676, or other such place as is mutually agreed upon by the parties.  If the Purchaser desires to close this transaction prior to the closing date, then Purchaser shall give Seller written notice at least ten (10) days prior to the desired closing date which notice shall state the desired closing date, provided however, that Seller shall not be required to close prior to October 10, 2008.

Seller shall pay for the preparation of the Deed.   Purchaser shall pay for the cost of recording the Deed.  Seller and Purchaser shall each pay their own attorney’s fees and other expenses incurred in connection with this transaction. 

4.

Inspections and Tests:  Purchaser, or its designees, may, at any time after Seller’s and Purchaser’s execution of this Contract, enter on the Property to make engineering studies, surveys, and other such tests, examinations and inspections as Purchaser may desire as long as such tests, examinations and inspections, do not reasonably interfere with the operations or any current use of the Property.   Purchaser will have all soil test borings, environmental studies, and other reports completed as soon as possible and will provide Seller with a copy.  If the Closing does not occur, Purchaser will make such repairs as necessary to leave the Property in the same condition as it existed prior to entry by Purchaser. Purchaser will notify Shea Leatherman at least one (1) day in advance each time Purchaser intends to enter onto the Property for purposes contemplated herein.  All tests shall be performed within ninety days from the date of last execution hereof.  If any test reveals a defect with the Property which will materially affect Purchaser intended use of the Property, then Purchaser shall give written notice thereof to Seller.  Seller shall have 30 days to cure the alleged defect, failing which, Purchaser shall either have the right to waive the defect and close without regard thereto, or to terminate this Contract and have all monies delivered to the Dulaney Law Firm which were held pursuant to 

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the Escrow Agreement returned to Purchaser.  Purchaser shall in no event be entitled to a return of the payment made to Seller pursuant to ¶2A above.

5.

Form of Deed:  Seller shall deliver to Purchaser at Closing, a general warranty deed, conveying good and marketable fee simple title to the Property, subject only to such easements and restrictions of record specifically approved by Purchaser and subject to the following:

a.

Taxes for the year 2008 which the parties will prorate as of the date of closing;

b.

Zoning, subdivision and sign regulations of Tunica County, Mississippi; and

c.

Permitted Exceptions.

6.

Merchantability of Title: In the event a title search reveals defects in the title, other than those listed in Paragraph 5(a) - (c), which will materially and adversely affect the Purchaser’s use of the Property, Purchaser shall notify Seller in writing of the specific defects within 90 days of the last execution hereof and thereupon Seller shall have 30 days to cure said defects.  The Seller will take no action to cause or allow, and will not allow any defects to arise with regard to the title to the Property.  If the Seller is unable to cure the defect at a cost of less than $10,000, then Seller shall give notice thereof to the Purchaser.  Purchaser shall then have 30 days to decide whether to accept the Property subject to the identified defect, or to terminate this Contract and have all earnest money previously paid returned to it upon which neither party shall have further obligation to the other, provided however, that if the defect can be cured for less than $100,000, then the Purchaser may proceed to close and use the first US $100,000 earnest money payment to cure the defect.  Further, if the cost to cure the defect is greater than $100,000, then Purchaser may elect to close notwithstanding the defect and the same shall be deemed Permitted Exceptions.

7.

Collection Costs:  In the event any action is commenced by either party against the other in connection herewith, the prevailing party shall be entitled to its costs and expenses, including reasonable attorney’s fees.  This provision shall survive the closing.

8.

Notice:  Any and all notices and demands by any party to the other party, required or desired to be given hereunder shall be in writing and shall be validly given or made only if deposited in the United States mail, certified or registered, postage prepaid, return receipt requested or if made by Federal Express or similar delivery service keeping records of deliveries and attempted deliveries or if made by telecopy.  Service by United States mail or delivery service shall be conclusively deemed made on the first business day delivery is attempted or upon receipt, whichever is sooner.  Service by facsimile copy or telecopy shall be deemed made upon confirmed transmission.

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Any notice or demand to Seller shall be addressed to Picture Window, LLC, Attn: Shea Leatherman, 5160 Casino Strip Resorts Boulevard, P.O. Box 97, Robinsonville, MS 38664, telephone number (662) 363-2376, fax (662) 363-1212.

Any notice or demand to Purchaser from October 1 until May 15 shall be addressed to Myriad World Resorts of Tunica, LLC, Attn: Nicholas A. Lopardo, 5615 Baltusrol Court, Sanible, FL 33957; telephone number (978) 360-2321, fax (978) 856-3106, and from May 16 until September 30 shall be addressed to Myriad World Resorts of Tunica, LLC, Attn: Nicholas A. Lopardo, P.O. Box 1177, Newburyport, MA, 01950, with a copy to Myriad World Resort of Tunica, LLC, P.O. Box , 987 Harris Street, Tunica, MS 38676.

Any party hereto may change its address for the purpose of receiving notices or demands as herein provided by a written notice given in the manner aforesaid to the other party hereto, which notice of change of address shall not become effective, however, until the actual receipt thereof by the other party.

9.

Entire Agreement: Amendments:  This Contract and its exhibits contain the entire agreement between the parties with regard to the sale and purchase of the Property except as provided for herein, and no promise, representation, warranty, covenant, agreement or understanding not specifically set forth in this Contract shall be binding upon, or inure to the benefit of, either party.  This Contract may not be amended, altered, modified or supplemented in any manner except by an instrument in writing duly executed by the parties.  The parties hereto represent, covenant and agree that any promise, representation, warranty, covenant, agreement or understanding which either deems material is included in and made a part of this Contract.

10.

Governing Law: Interpretation:  This Contract shall be construed and enforced in accordance with the laws of the State of Mississippi.  The fact that this Contract shall have been prepared by an attorney for either the Seller or Purchaser shall not be used to construe or interpret this Contract for or against either party; the parties intend that the provisions of this Contract shall be given their fair meaning and no court shall construe this Contract more stringently against one party than against the other.  Further, both parties represent that they are represented by counsel and have been fully advised of the effects and ramifications of all terms, conditions, covenants, and obligations contained in this agreement.

11.

Binding Effect: The provisions of this Contract shall be binding upon, and shall inure to the benefit of, the parties and respective heirs, executors, administrators, personal and legal representatives, successors and assigns.

12.

No Waiver: The failure of Seller or Purchaser to insist upon strict performance of any of the terms, conditions, covenants and obligations contained in this Contract shall not be deemed a waiver of any rights or remedies for any subsequent breach or default in the terms, conditions, covenants and obligations herein contained.

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13.

Section Headings.  The Section headings hereof are intended for convenience and reference purposes only and shall not be used to construe or interpret this Contract.

14.

Severability.  If any provisions of this Contract shall be determined by any court to be invalid, illegal or unenforceable to any extent, then the remainder of this contract shall not be affected, and this Contract shall be construed as if the invalid, illegal, or unenforceable provision had never been contained in this Contract.

15.

Time is of the Essence:  Except as otherwise provided herein, time is of the essence as to this Contract and failure of either party to timely comply with the provisions of this Contract may result in the other party canceling this Contract which decision will be in that party’s sole discretion.

16.

Condemnation or Casualty: If the Property or any substantial portion thereof which could affect the Purchaser’s intended use thereof shall be condemned, prior to closing, or any proceeding for the condemnation of the Property, or any substantial portion thereof which could affect the Purchaser’s intended use thereof, is filed, or an agreement of sale is negotiated in lieu thereof, or if the Property shall sustain any casualty damage, Purchaser may elect to terminate this Contract and have all monies delivered to the Dulaney Law Firm which were held pursuant to the Escrow Agreement returned to it.  Purchaser shall in no event be entitled to a return of the payment made to Seller pursuant to ¶2A above.  Alternatively, if Purchaser does not terminate and elects to proceed hereunder, any condemnation award or casualty insurance proceeds shall be accredited against the Purchase Price.

17.

Failure to Close:  If Seller fails to deliver the Deed or meet any of the conditions hereof, Purchaser, at Purchaser’s sole option, may terminate this Contract and shall be entitled to a return of  all monies delivered to the Dulaney Law Firm which were held pursuant to the Escrow Agreement returned to it.   Purchaser shall in no event be entitled to a return of the payment made to Seller pursuant to ¶2A above.  If Purchaser fails to perform and close as called for herein, then Seller’s only remedy is to receive and retain all monies delivered to the Dulaney Law Firm which were held pursuant to the Escrow Agreement plus the money paid directly to Seller in paragraph 2A above.  Notwithstanding the above and as an alternate remedy in the event Seller fails to deliver the Deed or meet any conditions hereof, Purchaser may demand specific performance.

18.

Brokers and Agent: Purchaser and Seller represent and warrant that both have existing real estate listing agreements with Kenneth M. Murphree, LLC and that Mr. Murphree is working as a dual agent.  Seller will pay Kenneth M. Murphree, LLC a 6% commission at closing.  The 6% commission to be paid by Seller will be based on the cash sales price (currently $36,000,000 based on paragraph 2 above) and stock consideration (see paragraph 23).  Purchaser will pay Kenneth M. Murphree, LLC an amount equal to 

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6% of the gross gaming revenue (or Minimum Annual Payments, which ever is greater) to be paid to Seller by Purchaser pursuant to Paragraph 2.  This will result in an amount equal to 0.12% of the gross gaming revenue (or Minimum Annual Payments, which ever is greater) being paid to Kenneth M. Murphree, LLC.   This payment shall be made at the same time and in the same manner as the payments are to be made by Purchaser to Seller.  Except for the referenced agreements, Seller and Purchaser represent and warrant to each other that no broker or agent is due a commission from the proceeds of the Closing except as specifically stated herein and each hereby agrees to indemnify and hold the other and the Property harmless from the claims of any agent or broker for the payment of a commission.

19.

Tax Free Exchange:  Notwithstanding the provisions contained above relating to the sale of the Property, the parties acknowledge the possible desire and intention of Seller, if possible,  to exchange the Property for property of a like kind or to utilize proceeds from a conveyance of other property in an exchange qualifying as a tax free exchange under Section 1031 of the Internal Revenue Code of 1986 (as amended), Purchaser and Seller shall each cooperate fully to implement such exchange as hereinafter provided (at no additional expense to the other party).

20.

Deferred Exchange:   In order to permit Seller to implement a deferred (or non-simultaneous) exchange pursuant to I.R.S. regulation Section 1.1031 (k)-1 (the Deferred Exchange Regulations), the parties acknowledge and agree that Seller may cause the Property to be conveyed, or this agreement to be assigned, to a Qualified Intermediary pursuant to the Deferred Exchange Regulations and that at closing, the Property will be conveyed to Purchaser and the Purchase Price will be paid by Purchaser to the Qualified Intermediary.  In the event Purchaser desires to effectuate acquisition using proceeds from a deferred exchange involving other land presently vested in Purchaser, Seller shall accept funds from Purchaser’s Qualified Intermediary and shall recognize that Purchaser’s interest may be assigned to such Qualified Intermediary.  Any deferred exchanges will be completed prior to the closing of this transaction so as to vest title in Purchaser at closing upon the payment of the balance of the Purchase Price. 

21.

A material part of the consideration to the purchaser for purchasing is that the Purchaser has the option to qualify this transaction as part of a tax-deferred exchange under Section 1031 of the Internal Revenue Code of 1986.  Seller agrees that Purchaser may assign this Agreement to an exchange intermediary of Purchaser's choice.

 

22.

Seller warrants and represents that it possesses full right, power and authority to execute, deliver and perform this Contract.  Purchaser warrants and represents that it possesses full right, power and authority to execute, deliver, and perform this Contract.

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23.

Stock Issurance:

(a)

At closing, Myriad Entertainment and Resorts, Inc. (hereinafter “Myriad Entertainment”) shall cause to be issued and delivered shares of its Common Stock, subject to applicable federal and state securities laws, as follows:

Seller:

Number of Shares of Common Stock:

Picture Window, LLC

1,880,000

Kenneth M. Murphree, LLC

120,000

Myriad Entertainment joins in the Contract solely for the purpose of evidencing its intent, agreement and obligation to issue the above referenced shares as required herein.

Picture Window LLC and Kenneth Murphree LLC are each  “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the 1933 Act.  Each has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the acceptance/receipt of the Common Stock.  Each is not registered as a broker or dealer under Section 15(a) of the 1934 Act, affiliated with any broker or dealer registered under Section 15(a) of the 1934 Act, or a member of the National Association of Securities Dealers, Inc.

Picture Window LLC and Kenneth Murphree LLC are receiving the Common Stock for their respective account, with the intention of holding the Common Stock, with no present intention of dividing or allowing others to participate in this investment or of reselling or otherwise participating, directly or indirectly, in a distribution of the Common Stock, and shall not make any sale, transfer, or pledge thereof without registration under the Act and any applicable securities laws of any state or unless an exemption from registration is available under those laws.

(b) Transfers.  Except as otherwise provided herein, the Common Stock may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of the Common Stock other than pursuant to an effective registration statement, Myriad Entertainment may require the transferor thereof to provide to Myriad Entertainment an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to Myriad Entertainment, to the effect that such transfer does not require registration of such transferred Common Stock under the Securities Act of 1933, as amended.  As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement, including the lockup agreement (as indicated below).  

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(c) Shares Legend.  The above named recipient(s) agree to the imprinting of a legend on the certificates representing their shares, in substantially the following form:

THESE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW, OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

(d) Lock-Up and Voting Rights.  Each of the above named recipient(s) agree that he/she/it/they shall not,  offer, sell, assign, hypothecate, pledge, transfer or otherwise dispose of any of his/her/its/their shares of Myriad Entertainment common stock issued upon consummation of the transactions contemplated in this Contract for a period of five (5) years from the Closing (“Lockup Period”). The form of Lock-Up Letter for each above named recipient is annexed hereto and made a part hereof as Exhibit “B”. Further, the above named recipient(s) of the shares of common stock shall have no voting rights during the Lockup Period and, if requested, each recipient(s) shall execute and deliver a proxy as directed by Myriad Entertainment’s Board of Directors.

24.

Seller (and/or various related parties) will provide certain land from which Purchaser may buy dirt from Seller and other related parties.  The terms and conditions of such contract for sale of dirt will include those terms contained in Exhibit “C” attached hereto.  The contract shall include a provision that Purchaser shall have no rights to dirt under the dirt contract unless and until the sale of the Property between Seller and Purchaser closes and there is notice signed by both parties that the sale has closed. 

25.

In the event any person entitled to receive Additional Payments, including Seller (or any officer, director, manager, membership owners, etc.), Kenneth M. Murphree, LLC (or any officer, director, manager, membership owners, etc.) or any assignees of Seller or Kenneth M. Murphree, LLC, is required to be approved or licensed by the Mississippi Gaming Commission or its successor (“MGC”), then each such person required to be approved or licensed shall undertake to obtain such approval or licensing.  If any such person is found not suitable or is denied a license, or is otherwise prohibited by the MGC from receiving Additional Payments or part thereof, then Seller, or Kenneth M. Murphree, or their assignees, as applicable, agrees to either restructure ownership and/or management in a way satisfactory to the MGC so as to allow receipt of Additional Payments or part thereof, or to divest themselves of assets or rights that resulted in the need for approval or license.  

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If any person otherwise entitled to receive Additional Payments or part thereof is prohibited from receiving such payments, or part thereof, by the MGC (“Prohibited Person”), then Purchaser shall not be obligated to pay that Prohibited Person any part of Additional Payments that are so prohibited.  For example, if a person is prohibited from receiving Percentage Payments by the MGC, but is not prohibited from receiving Minimum Additional Payments, then Purchaser shall be obligated to pay the Minimum Additional Payment or part thereof to such Prohibited Person but shall not be obligated to pay the Percentage Payment to such Prohibited Person, unless and until such Prohibited Person is allowed by the MGC to receive such payments. 

Any Percentage Payment which would have been due to the Prohibited Person will be paid to other persons entitled and able to receive such payment.  For example, if Seller transferred its rights to receive Additional Payments to three individuals, one of whom became a Prohibited Person, then the Percentage Payment otherwise due to the Prohibited Person would be paid to the other two assignees of Seller.

In addition, Seller and/or Kenneth M. Murphree, LLC, agree not to distribute any Additional Payments or part thereof to any owners, officers, directors or other persons who are prohibited from receiving such by the MGC.  

Further, any damage caused to  Purchaser as a result of the non-approved/non-licensed party shall be reimbursed to Purchaser by said party.  Purchaser shall verify and report to Seller of any licenses or permits that may be needed and Seller shall immediately initiate and complete the licensing/approval process.

26.

If Myriad sells the development, the purchasing party shall be required to honor all of the obligations contained in this Contract.

27.

Within 90 days of the date of execution of this Contract, Seller and related parties and Purchaser will enter into a contract for the sale of additional property as follows:

A.

50 acres adjacent to the Yazoo-Mississippi Delta main line levee.  The Contract will include the terms and conditions and be in a form similar to Exhibit “D” attached hereto;

B.

200-300 acres for a golf course.  Such contract will include the terms and conditions and be in a form similar to Exhibit “E” attached hereto.

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The above referenced contracts shall include a provision that Purchaser shall have no rights to acquire said parcels unless and until the sale of the Property between Seller and Purchaser closes and there is notice signed by both parties that the sale has closed. 

28.

Site Development:  The parties agree that the design and construction of the gaming casino/establishment will be a structure that utilizes permanent pilings in accordance with the Mississippi Gaming Commission regulations.

29.

If this transaction does not close, then upon termination of the Contract or any contract referenced herein, the parties will execute such documents as reasonably necessary to reflect such termination and such documents will be in recordable form.

30.

Notwithstanding the fact that certain paragraphs hereof (including, but not necessarily limited to paragraphs 4, 6, 16 & 17) contemplate that Purchaser might be entitled to a refund of some or all of the earnest money payment, Seller shall be entitled to retain a minimum of $100,000 of the first earnest money payment regardless of issues that might arise in order to allow Seller to recoup the cost it has incurred in connection with this project and the negotiations that have resulted in this Contract.

31.

Purchaser and Seller agree that, after closing of the sale of Property under the Contract, any defects in the additional property or dirt, or in title thereto, shall have no effect on the closing of the sale or on Seller, and Seller shall not be liable in any way for any failure of the additional property or sale of dirt contracts (i.e., the property and dirt relating to Exhibits C, D and E) to close.

32.

Each of the contracts contemplated by Exhibits C, D and E shall contain the following provision:

“If Sellers hereunder fail to deliver the deed or meet any of the conditions hereof, Buyer’s remedies shall be limited to either terminating the contract or demanding specific performance at Buyer’s election and in Buyer’s sole discretion.  Sellers shall in no event be liable for any damages, consequential or otherwise.”

Witness our signatures on the day and year as first above written and by signing this Contract each party represents to the Party opposite that this contract has been read in its entirety and all terms, conditions, covenants and obligations are fully understood.

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	MYRIAD WORLD RESORTS OF

TUNICA, LLC acting through its Manager:

			
	 
	 
	MYRIAD ENTERTAINMENT AND

RESORTS, INC.,

	 
	 
	  

	 
	 
	 

	 
	By:  

	 

	 
	 
	Nicholas A. Lopardo

	 
	 
	Title: Chairman and CEO

			
	 
	 
	MYRIAD ENTERTAINMENT AND

	 
	 
	RESORTS, INC.,

	 
	 
	 

	 
	By:  

	 

	 
	 
	Nicholas A. Lopardo

	 
	 
	Title: Chairman and CEO

			
	 
	 
	PICTURE WINDOW, LLC

	 
	 
	 

	 
	 
	 

	 
	By:  

	 

	 
	 
	Shea Leatherman, Member/Manager

			
	 
	 
	KENNETH M. MURPHREE, LLC

	 
	 
	 

	 
	 
	 

	 
	By:  

	 

	 
	 
	Kenneth M. Murphree. Member/Manager

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STATE OF                                 

COUNTY OF                               

Personally appeared before me, the undersigned authority in and for said County and State, the above named Nicholas A. Lopardo, the Chairman and CEO of Myriad Entertainment & Resorts, Inc., the parent and manager of the above named Myriad World Resorts of Tunica, LLC., a Mississippi Limited Liability Company and acknowledged that on behalf of said limited liability company, and in its name, being duly authorized so to do, he signed the foregoing instrument  and delivered said instrument on the day and year therein mentioned.

GIVEN under my hand and official seal, this the _____ day of July, 2008.

                                                                           

          Notary Public

My Commission Expires:                                             

STATE OF                                         

COUNTY OF                                      

Personally appeared before me, the undersigned authority in and for said County and State, the above named Nicholas A. Lopardo, the Chairman of the Board of the Directors and CEO of the above named Myriad Entertainment and  Resorts, Inc., a Delaware Corporation and acknowledged that on behalf of said limited liability company, and in its name, being duly authorized so to do, he signed the foregoing instrument  and delivered said instrument on the day and year therein mentioned.

GIVEN under my hand and official seal, this the _____ day of July, 2008.

                                                                           

          Notary Public

My Commission Expires:                                             

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STATE OF MISSISSIPPI

COUNTY OF TUNICA

Personally appeared before me, the undersigned authority in and for said County and State, the above named Shea Leatherman, the Manager and a Member of the above named Picture Window, LLC, a Mississippi Limited Liability Company and acknowledged that on behalf of said limited liability company, and in its name, being duly authorized so to do, he signed the foregoing instrument  and delivered said instrument on the day and year therein mentioned.

GIVEN under my hand and official seal, this the _____ day of July, 2008.

                                                                           

          Notary Public

My Commission Expires:                                             

STATE OF MISSISSIPPI

COUNTY OF TUNICA

Personally appeared before me, the undersigned authority in and for said County and State, the above named Kenneth M. Murphree, the Manager and a Member of the above named Kenneth M. Muphree, LLC, a Mississippi Limited Liability Company and acknowledged that on behalf of said limited liability company, and in its name, being duly authorized so to do, he signed the foregoing instrument  and delivered said instrument on the day and year therein mentioned.

GIVEN under my hand and official seal, this the _____ day of July, 2008.

                                                                           

          Notary Public

My Commission Expires:                                             

C:\COREL USER\Myriad\Picture Window\001.contract.FINAL.080715.wpd

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EXHIBIT A

MYRIAD WORLD RESORTS OF TUNICA, LLC/PICTURE WINDOW, LLC

§75-76-5

75-76-5 Definitions.

[GENERAL PROVISIONS] 

As used in this chapter, unless the context requires otherwise: 

(a) - (o) intentionally deleted.

(p) "Gross revenue" means the total of all of the following, less the total of all cash paid out as losses to patrons and those amounts paid to purchase annuities to fund losses paid to patrons over several years by independent financial institutions: 

(i) Cash received as winnings; 

(ii) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and 

(iii) Compensation received for conducting any game in which the licensee is not party to a wager. 

For the purposes of this definition, cash or the value of noncash prizes awarded to patrons in a contest or tournament are not losses. 

The term does not include: 

(i) Counterfeit money or tokens; 

(ii) Coins of other countries which are received in gaming devices; 

(iii) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed; or 

(iv) Cash received as entry fees for contests or tournaments in which the patrons compete for prizes. 

(q) - (ll) intentionally deleted.

Sources: Laws, 1990 Ex Sess, ch. 45, §3; Laws, 1991, ch. 543, §2; Laws, 1992, ch. 371, §4; Laws, 1993, ch. 488, §1, eff from and after passage (approved April 20, 1993).

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EXHIBIT B

LOCK UP AGREEMENT/LETTER

Myriad Entertainment and Resorts, Inc.

2565 Horizon Lake Drive, Suite 110

Memphis, TN 38133

Ladies and Gentlemen:

The undersigned, a beneficial owner of __________share of common stock, $0.001 par value per share (the "Common Stock"), of Myriad Entertainment & Resorts, Inc. (the "Company") agrees, for the benefit of the Company, that he/she will not, without the Company’s prior written consent (and, if required by applicable state blue sky laws, the securities commissions in any such states), offer, sell, assign, hypothecate, pledge, transfer or otherwise dispose of, directly or indirectly, any shares of Common Stock owned by him/her, or subsequently acquired through the exercise of any options, warrants or other rights, or the conversion of any other security, or by reason of any stock split or other distribution of stock, or grant options, warrants or other rights with respect to any such securities, all during the sixty (60) month period commencing on December 2, 2008, the Closing as defined in that certain Contract for the Sale and Purchase of Real Estate entered into by and between the undersigned and the Company, dated June, 2008 (the “Agreement”).  Furthermore, the undersigned will permit all certificates evidencing any such securities to be endorsed with the appropriate restrictive legends, and consents to the placement of appropriate stop transfer orders with the transfer agent for the Company.  A copy of this Agreement will be available from the Company or the Company’s transfer agent upon request and without charge. Further, the above named recipient of the shares of common stock shall have no voting rights during the Lockup Period and, if requested, each recipient shall execute and deliver a proxy as directed by Myriad’s Board of Directors.

The undersigned hereby agrees to be bound by the applicable provisions of the Agreement.

			
	 
	 
	 

	Number of shares beneficially owned

	 
	Shareholder Name

	 
	 
	 

	Number of shares subject to options, warrants, rights and/or convertible securities

	By:

	 

	 
	Signature

	 
	 
	 

	 
	 
	Printed Name

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EXHIBIT C

MYRIAD WORLD RESORTS OF TUNICA, LLC/PICTURE WINDOW, LLC

DIRT CONTRACT PROVISIONS

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EXHIBIT D

MYRIAD WORLD RESORTS OF TUNICA, LLC/PICTURE WINDOW, LLC

MAIN LINE LEVEE (50 ACRES) CONTRACT ISSUES

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EXHIBIT E

MYRIAD WORLD RESORTS OF TUNICA, LLC/PICTURE WINDOW, LLC

GOLF COURSE PROPERTY CONTRACT ISSUES

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EXHIBIT F

MYRIAD WORLD RESORTS OF TUNICA, LLC/PICTURE WINDOW, LLC

SURVEY OF THE PROPERTY

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