Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Wescorp Energy Inc. - Exhibit 10.1

EXHIBIT 10.1  

 AUDIT COMMITTEE CHARTER 

 This Audit Committee Charter (Charter) has been adopted
  by the Board of Directors (the Board) of Wescorp Energy Inc. ("Wescorp"). The
  Audit Committee of the Board (the Committee) shall review and reassess this
  Charter annually and recommend any proposed changes to the Board for approval.
   

 1. Role and Independence: Organization 

 The Committee assists the Board in fulfilling its responsibility
  for oversight of the quality and integrity of the accounting, auditing, internal
  control and financial reporting practices of Wescorp. It may also have such
  other duties as may from time to time be assigned to it by the Board. The membership
  of the Committee shall consist of at least three directors, who are each free
  of any relationship that, in the opinion of the Board, may interfere with such
  member's individual exercise of independent judgment. Each Committee member
  shall also meet the independence and financial literacy requirements for serving
  on audit committees, and at least one member shall have financial management
  expertise, all as set forth in the applicable rules of the Securities Exchange
  Commission. The Committee shall maintain free and open communication with the
  independent auditors and Company management. In discharging its oversight role,
  the Committee is empowered to investigate any matter relating to Wescorp's accounting,
  internal control or financial reporting practices brought to its attention,
  with full access to all Company books, records, facilities and personnel. The
  Committee may retain outside counsel, auditors or other advisors. 

 One member of the Committee shall be appointed as chair. The
  chair shall be responsible for leadership of the Committee, including scheduling
  and presiding over meetings, preparing agendas, and making regular reports to
  the Board. The chair will also maintain regular liaison with the CEO, CFO and
  the lead independent audit partner. 

 The Committee shall meet at least two times a year, or more
  frequently as the Committee considers necessary. At least once each year the
  Committee shall have separate private meetings with the independent auditors
  and management. 

 2. Responsibilities  

 Although the Committee may wish to consider other duties
  from time to time, the general recurring activities of the Committee in carrying
  out its oversight role are described below. The Committee shall be responsible
  for:   

	
    Recommending to the Board the independent auditors to
      be retained (or nominated for shareholder approval) to audit the financial
      statements of Wescorp. Such auditors are ultimately accountable to the Board
      and the Committee, as representatives of the shareholders. 

        

  
	
     Evaluating, together with the Board and management,
      the performance of the independent auditors and, where appropriate, replacing
      such auditors. 

        

  
	
     Obtaining annually from the independent auditors a formal
      written statement describing all relationships between the auditors and
      Wescorp, consistent with Independence Standards Board Standard Number1.
      The Committee shall actively engage in a dialogue with the independent auditors
      with respect to any relationships that may impact the objectivity and independence
      of the auditors and shall take, or recommend that the Board take, appropriate
      actions to oversee and satisfy itself as to the auditors' independence.
      

        

  
	
     Reviewing the audited financial statements and discussing
      them with management and the independent auditors. These discussions shall
      include the matters required to be discussed under Statement of Auditing
      Standards No. 61 and consideration of the quality of Wescorp’s accounting
      principles as applied in its financial reporting, including a review of
      particularly sensitive accounting estimates, reserves and accruals, judgmental
      areas, audit adjustments (whether or not recorded), and other such inquiries
      as the Committee or the independent auditors shall deem appropriate. Based
      on such 

  

   review, the Committee shall make its recommendation to the
    Board as to the inclusion of Wescorp’s audited statements in Wescorp’s
    Annual Report on Form 10K. 

	
     Issuing annually a report to be included in Wescorp’s
      proxy statement as required by the rules of the applicable Securities and
      Exchange Commissions. 

        

  
	
     Overseeing the relationship with the independent auditors,
      including discussing with the auditors the audit process, receiving and
      reviewing audit reports, and providing the auditors full access to the Committee
      (and the Board) to report on any and all appropriate matters. 

        

  
	
     Discussing with a representative of management and the
      independent auditors any issues arising from the independent auditor’s
      review of the quarterly financial statements prior to the filing of Wescorp’s
      Quarterly Report on Form 10Q. 

        

  
	
     Discussing with management and the independent auditors
      the quality and adequacy of and compliance with Wescorp’s internal
      controls. 

        

  
	
     Discussing with management and/or Wescorp’s general
      counsel any legal matters (including the status of pending litigation) that
      may have a material impact on Wescorp’s financial statements, and any
      material reports or inquiries from regulatory or governmental agencies.
    

  

 The Committee's job is one of oversight. Management is responsible
  for the preparation of Wescorp’s financial statements and the independent
  auditors are responsible for auditing those financial statements. The Committee
  and the Board recognize that management and the independent auditors have more
  resources and time, and more detailed knowledge and information regarding Wescorp’s
  accounting, auditing, internal control and financial reporting practices than
  the Committee does; accordingly the Committee's oversight role does not provide
  any expert or special assurance as to the financial statements and other financial
  information provided by Wescorp to its shareholders and others.Filed by Automated Filing Services Inc. (604) 609-0244 - Wescorp Energy Inc. - Exhibit 10.2

 EXHIBIT 10.2 

 Wescorp Energy Inc.

  TERMS OF REFERENCE

AUDIT COMMITTEE 

 (Prepared April 03, 2003) 

 An Audit Committee be constituted with following voting members: 

	 	Terry Mereniuk	Director (Committee Chairman)
	 	John Anderson	Director
	 	Alfred Comeau	Director

 Attendees by Invitation: 

   External Audit Representative 

  Recording Secretary 

and that a quorum be defined as 2 directors. 

 RESPONSIBILITIES 

	1.
   	To review the annual audited financial
        statements and, if appropriate, to recommend their approval by the Board
        of Directors.

         

	2.
   	To review and approve the quarterly
        unaudited financial statements.

         

	3.
   	To review the financial content of the
        annual report and interim financial reports before publication.

         

	4.
   	To review the Regulatory Report Filing
        requirements

         

	5.
   	To monitor the appropriateness of accounting
        policies and financial reporting used by the Company; to review any significant
        changes in accounting policies and practices to be adopted by the Company;
        and to review and assess any new or pending developments in accounting
        and reporting standards that may affect or impact on the Company.

         

	6.
   	To review the terms of the annual external
        audit engagement, including staffing, the objectives and scope of the
        audit work.

         

	7.
   	To review with the External Auditors
        the results of the annual audit examination, including any difficulties
        encountered, internal accounting controls, procedures and documentation,
        and any other matters that the external auditors should bring to the attention
        of the Committee.

         

	8.
   	To meet with the External Auditors,
        at least annually or as requested by the auditors, without management
        representatives present.

         

	9.	To provide a direct line of communications,
        in all matters as required, between management, the External Auditors
        and the Board of Directors.

 1 

 

	10.
   	To consider the annual appointment of
        External Auditors for the recommendation to the Board of Directors.

         

	11.
   	To review fees of the External Auditors
        annual external audit engagement.

         

	12.
   	To review the Company's policies regarding
        Code of Conduct and Conflicts of Interest.

         

	13.
   	To consider any other matters which,
        in the opinion of the Audit Committee, or at the request of the board
        of Directors, would assist the directors to meet their responsibilities.

         

	14.	To review annually the Committee's Terms
        of Reference and to recommend any required changes to the Board of Directors.

 THE ABOVE TERMS OF REFERENCE WERE APPROVED AT A MEETING HELD
  BY THE BOARD OF DIRECTORS ON APRIL 24, 2003. 

 2succession of trustee on 3/25/04

SUCCESSION AGREEMENT PURSUANT TO THE PROVISIONS OF 

THE TRUST AGREEMENT FOR THE BENEFIT OF THE SHAREHOLDERS 

OF MEGA-C POWER CORPORATION 

THIS SUCCESSION AGREEMENT PURSUANT TO THE PROVISIONS OF THE TRUST AGREEMENT FOR THE BENEFIT OF THE SHAREHOLDERS OF MEGA-C POWER CORPORATION is entered on the 25 th day of March 2004 between: 

BENJAMIN RUBIN , an Ontario solicitor in good standing whose office address is 229 Russell Hill Road, Toronto, Ontario, Canada (the “Resigning Trustee”) 

 

AND 

SALLY A. FONNER , an individual whose office address is 1268 Bayshore Boulevard, Dunedin Florida (the “Successor Trustee”) 

 

AND 

TAMBORIL CIGAR COMPANY , a business corporation organized and existing under the laws of Delaware, having its principal executive office at 100 Caster Avenue, Vaughn, Ontario, Canada (the “Grantor”)

 

WITNESSES THAT: 

 

WHEREAS the Resigning Trustee was originally appointed trustee of the “ Trust for the Benefit of the Shareholders of Mega-C Power Corporation ” by the Grantor on December 31, 2003; and 

WHEREAS the Resigning Trustee was subsequently named as a defendant in the lawsuit styled “Lewis (Chip) Taylor, Chip Taylor in Trust, Jared Taylor, Elgin Investments, Inc. and Mega-C Technologies, Inc. v. Tamboril Cigar Company, Axion Power Corporation, Rene Pardo, Marvin Winick, Kirk Tierney, Joseph Piccirilli, Ronald Bibace, Robert Averill, James Smith, James Eagan, Thomas Granville, Joseph Soccar, Glenn W. Patterson, Canadian Consultants Bureau, Inc. Robert Appel, Harold Rosen, Igor Filipenko, Valeri Shtemberg, Yuri Volfkovich, Pavel Shmatko, Michel Kishinevsky, Mega-C Power Nevada, Mega-C Power Ontario, C and T Co. Incorporated, Turitella Corporation, Gary Bouchard, Fogler Rubinoff LLP, Netprofitec, Inc. 503124 Ontario Ltd. John Doe Corporation, HAP Investments LLC, Infinity Group LLC, James Keim and Benjamin Rubin” which was filed in the Ontario Superior Court of Justice, Commercial List, on February 10, 2003; and 

WHEREAS the Resigning Trustee advised the Grantor on March 17, 2004 that he intended to resign as trustee of the Trust for the Benefit of the Shareholders of Mega-C Power Corporation on the 10 th day after the delivery of such notice to the Grantor in accordance with the provisions of Section 9.5 of the Trust Agreement; and 

WHEREAS the Successor Trustee has expressed a willingness to assume the responsibilities and powers of the trustee of the Trust for the Benefit of the Shareholders of Mega-C Power Corporation in accordance with the provisions of Section 9.6 of the Trust Agreement; and 

WHEREAS the Grantor’s Board of Directors has concluded that the Successor Trustee has all of the necessary knowledge, experience, education and skills to fully discharge the functions of the trustee of the Trust for the Benefit of the Shareholders of Mega-C Power Corporation ; and 

WHEREAS the Resigning Trustee is willing to rely on the conclusions of the Grantor’s Board of Directors and to appoint the Successor Trustee as his successor pursuant to the express provisions of Section 9.6 of the Trust Agreement; 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual obligations and agreements herein set forth, the parties hereto covenant and agree as follows: 

	 
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ARTICLE 1 – INTERPRETATION 

Section 1.1 Definitions In this Agreement, unless there is something in the subject matter or context inconsistent therewith, the following terms have the meanings ascribed to them: 

	
“Agreement” means the trust agreement between the Grantor and the Resigning Trustee styled Trust for the Benefit of the Shareholders of Mega-C Power Corporation , and any amendments thereto or restatements thereof. 

	
“Applicable Laws” means any statute of the United States or Canada or of any State or Province together with any rules or regulations made thereunder, and the orders or rulings of any securities commission or other statutory authority or agency, in each case applicable to the Tamboril Shares. 

	
“Grantor” means Tamboril Cigar Company and its successors or assigns under the terms of this Agreement. 

	
“Mega-C” means Mega-C Power Corporation, an Ontario corporation. 

	
“Mega-C Share” means one share of the no par value common stock of Mega-C. 

	
“Mega-C Shareholder” means each person who can establish to the reasonable satisfaction of the Trustee that he is a record or beneficial owner of Mega-C Shares. For purposes of this definition, a person who can establish that he loaned money to a record or beneficial owner of Mega-C Shares under the terms of a secured note or other instrument that is presently in default shall be deemed to be the beneficial owner of the Mega-C Shares pledged as collateral for the loan. 

	
“OSC” means the Ontario Securities Commission. 

	
“SEC” means the United States Securities and Exchange Commission. 

	
“Tamboril Shares” means 117,239,736 shares of the $.0001 par value common stock of the Grantor that were previously issued and delivered to the Resigning Trustee and presently constitute the entire corpus of the Trust.

                      j.  “Resigning Trustee” means Benjamin Rubin, an Ontario solicitor in good standing whose office address is 229 Russell Hill Road, Toronto, Ontario, Canada. 

                      k.  “Successor Trustee” means Sally A. Fonner, an individual whose office address is 1268 Bayshore Boulevard, Dunedin Florida, and her successors or assigns under the terms of  the Agreement. 

Section 1.2 Article and Section Headings Article and section headings are included for convenience only and are not a part of this Agreement. 

Section 1.3 Gender and Number Words importing the singular shall include the plural and vice versa, and words importing gender shall include the masculine, feminine and neuter genders. 

ARTICLE I1 – RESIGNATION AND SUCCESSION 

Section 2.1 Appointment of Successor Trustee Effective at 9:01 a.m. EST on March 26, 2004, the Successor Trustee shall be an is hereby appointed successor to the Resigning Trustee under the Agreement and from and after that date the Successor Trustee shall have and enjoy all the powers of the Trustee under the Agreement and be responsible for the faithful performance of the duties of the Trustee under the Agreement: 

Section 2.2 Withdrawal of Resigning Trustee Effective at 9:01 a.m. EST on March 26, 2004, the Resigning Trustee shall be relieved of all further duty or responsibility under the Agreement and shall have no duty or 

	 
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responsibility to the Successor Trustee, the Grantor or the Beneficiaries of the Trust other than the specific duties set forth in this Succession Agreement: 

Section 2.3 Survival of Indemnity The indemnity provided to the Resigning Trustee under Section 9.8 of the Agreement shall survive the withdrawal of the Resigning Trustee and the appointment of the Successor Trustee and the Resigning Trustee shall continue to enjoy the indemnification and other rights specified in such Section 9.8 for as long as the Trust continues in existence. 

ARTICLE II1 – DETAILS OF SUCCESSION 

Section 3.1 Delivery of Trust Property On the effective date, or as soon thereafter as practicable, the Resigning Trustee shall deliver to the Successor Trustee certificates for 117,239,736 shares of the $.0001 par value common stock of the Grantor that were previously issued and delivered to the Resigning Trustee and presently constitute the entire corpus of the Trust. Concurrently, the Resigning Trustee shall return to the Grantor the unused balance of the $20,000 (U.S.) retainer that was deposited with the Resigning Trustee in connection with the original execution of the Agreement. 

Section 3.2 Surrender and Reissuance of Stock Certificates On the effective date, or as soon thereafter as practicable, the Successor Trustee shall submit the stock certificates delivered to her by the Resigning Trustee to the Grantor’s transfer agent for reissuance in the name of the Successor Trustee. 

Section 3.3 Reporting of Succession Within 5 business days after the effective date, the Grantor shall file a Current Report on Form 8-K to report to the Securities and Exchange Commission that the Resigning Trustee is no longer serving as trustee for the Trust for the Benefit of the Shareholders of Mega-C Power Corporation and has no further rights, powers or authority with respect thereto. Concurrently, the Successor Trustee shall file a Schedule 13D Information Statement and Form 3 to report the succession transaction and her control over the 117,239,736 shares of the $.0001 par value common stock of the Grantor that presently constitute the entire corpus of the Trust. 

IN WITNESS WHEREOF the Grantor, the Resigning Trustee and the Successor Trustee have each executed this Succession Agreement on the day and year above first written. 

TAMBORIL CIGAR COMPANY 

                                 /s/                            /s/     

Kirk Tierney, president and director      John L. Petersen, chief financial officer and director 

BENJAMIN RUBIN, RESIGNING TRUSTEE                              SALLY A. FONNER, SUCCESSOR TRUSTEE 

                             /s/                       /s/     

	
 

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