Document:

exv10w1

 

EXHIBIT 10.1

MEMORANDUM OF UNDERSTANDING

     THIS MEMORANDUM OF UNDERSTANDING (the “MOU”) is made on this 23rd day of August, 2006 (the
“Effective Date”) between Sedgman USA, LLC, a Pennsylvania limited liability company located at
2090 Greentree Road, Pittsburgh, PA 15220 (“Sedgman”), and NRP (Operating) LLC, a Delaware limited
liability company located at Suite 300, 1035 Third Avenue, Huntington, WV 25727 (“NRP”), each a
“Party” and together the “Parties”.

     WHEREAS, Sedgman is actively pursuing opportunities to build and operate coal handling and
preparation plants (“CHPPs”) for mining operations located within the United States; and

WHEREAS, NRP is actively pursing opportunities to own CHPPs located within the United States;

     WHEREAS, NRP and Sedgman desire to jointly pursue CHPPs opportunities, and more specifically,
seek to develop opportunities whereby NRP would acquire, own and lease to Sedgman CHPPs designed,
built and operated by Sedgman (“Potential Joint CHPP Opportunities”); and

     WHEREAS, the Parties desire to enter into this MOU in order to define the terms of their joint
pursuit of CHPPs opportunities.

     NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the
Parties agree as follows:

1. RIGHT OF FIRST REFUSAL

NRP and Sedgman hereby agree that if either party becomes aware of a Potential Joint CHPPs
Opportunity, that party (hereafter the “Reporting Party”) will first present the Potential Joint
CHPPs Opportunity to the other party to this MOU before any other and grant to that party the
following:

	 	a.	 	If the Reporting Party is Sedgman, Sedgman will give NRP the option to
acquire, own and lease to Sedgman the Potential Joint CHPPs opportunity or decline; or
	 
	 	b.	 	If the Reporting Party is NRP, NRP will give Sedgman the option to design,
build and operate the Potential Joint CHPPs Opportunity or decline;

(hereafter the “Right of First Refusal”). If a party has been offered the Right of First Refusal
and has declined to participate in the Potential Joint CHPPs Opportunity, then the Reporting Party
is free to pursue the Potential Joint CHPPs Opportunity for its own interest.

 

 

2. PROPRIETARY INFORMATION

The Parties agree that any information exchanged pursuant to this MOU will be subject to the
Confidentiality Agreement dated August 23, 2006 between the Parties.

3. LEGAL EFFECT OF AGREEMENT

The Parties agree that no legal relationship of any kind exists as a result of this MOU, other than
the covenants expressly contained herein. Neither Party shall have the authority to create any
obligation for the other except to the extent stated herein.

4. MISCELLANEOUS

Governing Law. The validity, construction and performance of this MOU, and all disputes
between the parties arising out of this MOU or as to any matters related to but not covered by this
Agreement, shall be governed by the laws, without regard to the laws as to choice or conflict of
laws, of the State of West Virginia.

Assignment. Neither this MOU nor any rights under this MOU may be assigned by any Party
without the prior written consent of the other Party.

Binding Effect. The provisions of this MOU shall bind and inure to the benefit of the
Parties and their respective successors and permitted assigns.

Parties in Interest. Nothing in this MOU, expressed or implied, is intended to confer on
any person or entity other than the Parties any right or remedy under or by reason of this MOU.

Amendment and Waiver. This MOU may only be amended, modified or supplemented in writing,
executed by each of the Parties. Any Party may in writing waive any provisions of this Agreement
to the extent such provision is for the benefit of the waiving Party. No action taken pursuant to
this MOU, including any investigation by or on behalf of any Party, shall be deemed to constitute a
waiver by that Party or its or any other Party’s compliance with any representations or warranties
or with any provisions of this MOU. No waiver by any Party of a breach of any provision of this
MOU shall be construed as a waiver of any subsequent or different breach, and no forbearance by a
Party to seek a remedy for noncompliance or breach by another Party shall be construed as a waiver
of any right or remedy with respect to such noncompliance or breach.

Severability. The invalidity or unenforceability of any particular provision of this MOU
shall not affect the other provisions, and this MOU shall be construed in all respects as if any
invalid or unenforceable provision were omitted.

2

 

Entire Agreement. This MOU Agreement embodies the entire agreement and understanding
between the Parties pertaining to the subject matter of this MOU, and supersede all prior
agreements, understandings, negotiations, representations and discussions, whether verbal or
written, of the Parties, pertaining to that subject matter.

IN WITNESS WHEREOF, the Parties hereto have executed this Memorandum of Understanding effective as
of the date indicated on the first page.

	 	 	 	 	 
	SEDGMAN USA, LLC

 	 	 
	By:  	/s/ Richard L. McCormick
 	 	 
	 	Name:  	Richard L. McCormick 	 	 
	 	Title:  	President 	 	 
	 
	NRP (Operating) LLC

 	 	 
	By:  	/s/ Wyatt L. Hogan
 	 	 
	 	Name:  	Wyatt L. Hogan 	 	 
	 	Title:  	Vice President and General Counsel 	 	 
	 

3exv10w1

 

Exhibit 10.1

ESCROW AGREEMENT

THIS AGREEMENT made as of the 14th day of August, 2006

AMONG:

     CANWEST PETROLEUM CORPORATION, a body corporate incorporated under the laws of
Colorado (hereinafter referred to as the “Corporation”)

- and -

     TINGLEMERRETT LLP (hereinafter referred to as the “Escrow Agent”)

- and -

     CHRISTOPHER H. HOPKINS, an individual resident in Calgary, Alberta (hereinafter
referred to as the “Securityholder”)

WHEREAS the Board of Directors of the Corporation have determined that it is in the best interests
of the Corporation to enter into the arrangement detailed herein;

AND WHEREAS the Securityholder is, as of the date hereof, the registered holder of 17,241,850
Exchangeable Preferred Shares (“Exchangeable Shares”) of Oilsands Quest Inc. (“OQI”);

AND WHEREAS each Exchangeable Share may be exchanged for a common share of the Corporation (a
"Common Share”), all as provided for in the Reorganization Agreement dated June 9, 2006 between the
Corporation and OQI;

AND WHEREAS the Securityholder has agreed to deposit 15,517,665 Exchangeable Shares (including the
Common Shares that may be issued upon the exchange of the Exchangeable Shares) (the “Escrowed
Shares”) into escrow pursuant to the terms hereof;

NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the premises and the covenants and
agreements herein contained, the parties hereto agree as follows:

	1.	 	The Securityholder hereby agrees to place and deposit the Escrowed Shares in escrow
with the Escrow Agent. The Securityholder further undertakes and agrees to deposit into
escrow any further securities of the Corporation which the Securityholder may receive as a
stock dividend on the Escrowed Shares and to deliver to the Escrow Agent immediately on
receipt thereof the certificates (if any) of any such further securities and any replacement
certificates which may at any time be issued for any of the Escrowed Shares, or in
substitution of them.
	 
	2.	 	The Securityholder shall be entitled to a letter or receipt from the Escrow Agent
stating the number of securities held for the Securityholder by the Escrow Agent subject to
the terms of this Agreement. It is expressly understood and agreed by the parties hereto that
such letter or receipt shall not be assignable or transferable.
	 
	3.	 	The parties hereby agree that the Escrowed Shares and the beneficial ownership of or
any interest in them and the certificate representing them (including any replacement
securities or certificates) shall remain in escrow and shall be released only in accordance
with the terms hereof.

 

 

	4.	 	The Securityholder directs the Escrow Agent to retain the Escrowed Shares and the
certificates (including any replacement securities or certificates) representing them and not
to do or cause anything to be done to release them from escrow or to allow any transfer,
hypothecation or alienation thereof.
	 
	5.	 	Unless the Board of Directors of the Corporation and the Securityholder otherwise
agree in writing, 2,586,277 Escrowed Shares shall be released from escrow on February 14, 2007
and all other Escrowed Shares shall be released from escrow on August 14, 2007.
	 
	6.	 	Unless the Board of Directors of the Corporation and the Securityholder otherwise
agree in writing, all Escrowed Shares shall immediately be released from escrow and delivered
to the Securityholder upon the occurrence of any of the following events:

	 	(a)	 	the death of the Securityholder; or
	 
	 	(b)	 	if the Securityholder terminates his employment with the Corporation following
the occurrence of any of the following events:

	 	(i)	 	the Corporation becomes insolvent or is adjucated bankrupt or takes
any steps to compromise its debts generally;
	 
	 	(ii)	 	proceedings are commenced for the winding up or dissolution of the
Corporation;
	 
	 	(iii)	 	there is a material breach or non-observance of the conditions of
the executive employment agreement entered into by the Securityholder and the
Corporation as of the date hereof; or
	 
	 	(iv)	 	a Change of Control or Triggering Event has occurred.

	 	 	For the purpose of this section “Change of Control” or “Triggering Event” have the meanings
ascribed to such terms in the executive employment agreement entered into by the
Securityholder and the Corporation as of the date hereof.
	 
	7.	 	The parties agree that any dividends (other than stock dividends) which may be payable
on any Escrowed Shares shall immediately be released to the Securityholder.
	 
	8.	 	The Corporation and the Securityholder shall do all things and provide such
authorizations, resolutions and powers of attorney as may be required to effect the releases
of the Escrowed Shares pursuant to the provisions hereof.
	 
	9.	 	All voting rights attached to the Escrowed Shares shall at all times be exercised by
the Securityholder.
	 
	10.	 	The parties acknowledges that the Escrowed Shares may be transferred within escrow or
hypothecated within escrow provided that any transferee or mortgagee of any of the Escrowed
Shares that are subject to this Agreement will, unless otherwise agreed to by the Corporation,
be required to become bound by all of the provisions hereof and accordingly, such transfer or
hypothecation shall be subject to the execution and delivery by the transferee or mortgagee of
a counterpart hereof in which it agrees to be bound by this Agreement.

 

 

	11.	 	The Securityholder may transfer Escrowed Shares within escrow to or between a
registered retirement savings plan, registered retirement income fund or other similar
registered plan or fund with a trustee, where the beneficiaries of the plan or fund are
limited to the Securityholder and his spouse, children, siblings, nephews, nieces and parents.
	 
	12.	 	The Securityholder and the Corporation hereby jointly and severally agree to and do
hereby release and indemnify and save harmless the Escrow Agent from and against all claims,
suits, demands, costs, damages and expenses which may be occasioned by reason of the Escrow
Agent’s compliance in good faith with the terms hereof.
	 
	13.	 	The Escrow Agent accepts the responsibilities placed on it by this agreement and
agrees to perform them in accordance with the terms of this agreement.
	 
	14.	 	The Corporation hereby acknowledges the terms and conditions of this agreement and
agrees to take all reasonable steps to facilitate its performance and to pay the Escrow
Agent’s proper charges for its services under this agreement.
	 
	15.	 	In the event the Escrow Agent wishes to resign, retire or otherwise terminate its
obligations pursuant to this agreement, it shall be required to provide at least fourteen (14)
days’ written notice to the Corporation. Upon receipt of such notice, the parties hereto may
appoint another Escrow Agent in its place and the new Escrow Agent shall assume and be bound
by the obligations of the Escrow Agent hereunder.
	 
	16.	 	This agreement may be executed in several parts of the same form and the parts as so
executed shall together constitute one original agreement and the parts, if more than one,
shall be read together and construed as if all the signing parties hereto had executed one
copy of this agreement.
	 
	17.	 	This agreement may be amended upon written agreement of the Corporation (at the
direction of its Board of Directors), the Escrow Agent and the Securityholder.
	 
	18.	 	This agreement contains the entire understanding between the parties hereto with
respect to the holding of the Escrowed Shares in escrow and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, between the parties and
there are no warranties, representations or other agreements between the parties in connection
with this agreement, except as specifically set forth herein.
	 
	19.	 	No waiver, modification or termination of this agreement shall be binding on any of
the parties unless executed in writing by all parties hereto. No waiver of any of the
provisions of this agreement shall be deemed or shall constitute a waiver of any other
provision (whether similar or not), nor shall any waiver constitute a continuing waiver unless
expressly provided.
	 
	20.	 	This agreement shall be interpreted in accordance with and governed in all respects
by the laws of the Province of Alberta. The Courts of Alberta shall have exclusive
jurisdiction to entertain any action or proceeding brought by or against any of the parties
hereto in connection with this agreement or any alleged breach thereof and the parties hereby
expressly agree to attorn to the jurisdiction of such Courts for that purpose.
	 
	21.	 	This agreement shall be read with all changes in gender or number as the context may
require, and the word “person” or “persons” as used in this agreement shall be deemed to
include firms,

 

 

	 	 	partnerships, corporations and associations as well as natural persons. Further, the term
“Escrow Agent” shall include a new Escrow Agent appointed under paragraph 15, and whenever
the singular or masculine is used, the same shall be construed to include the plural,
feminine, neuter or a corporate or other entity where the context so requires.
	 
	22.	 	Any provision or any portion of any provision or provisions of this agreement
determined by a court of competent jurisdiction to be invalid, illegal or unenforceable shall
be deemed stricken to the extent necessary to eliminate any invalidity, illegality or
unenforceability and the rest of the agreement and all other provisions and parts thereof
shall remain in full force and effect and be binding upon the parties hereto as though the
said illegal and/or unenforceable provision or provisions or part or parts thereof had never
been included in this Agreement.
	 
	23.	 	This agreement shall enure to the benefit of and be binding on the parties to this
agreement and each of their heirs, executors, administrators, successors and assigns.

IN WITNESS WHEREOF the Corporation, the Escrow Agent and the Securityholder have executed this
Agreement as of the date and year first above written.

	 	 	 	 	 
	 	CANWEST PETROLEUM CORPORATION

 	 
	 	Per:     /s/ T. Murray Wilson
 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	TINGLEMERRETT LLP

 	 
	 	Per:    /s/ Jeffrey A. Helper
 	 
	 	 	 
	 	 	 
	 

	 	 	 
	/s/ Jeffrey A. Helper

	 	/s/ Christopher H. Hopkins
	 

	 	 
	WITNESS

	 	CHRISTOPHER H. HOPKINS

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