Document:

Exhibit
10.20

 

Lone
Moose Adventures, Inc.

1438
East 8850 South

Sandy,
Utah 84093

 

	
  Attention:

  	
   

  	
  Christopher
  B. Glover, President

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Agreement of David C.
  Merrell (“Merrell”) to Provide Indemnification (the “Agreement”) respecting
  the Agreement and Plan or Reorganization (the “Reorganization”) (the
  “Reorganization Agreement”) between Southwest Casino and Hotel Corp., a
  Minnesota corporation (“Southwest”), Lone Moose Adventures, Inc., a Nevada
  corporation (“Lone Moose”), and a to be formed Minnesota wholly-owned
  subsidiary of Lone Moose (“Subsidiary”)

  

 

Dear
Mr. Glover:

 

In
consideration of the Merrell execution and delivery the Reorganization
Agreement between these parties and Merrell as one of the Principal
Shareholders (as defined in the Reorganization Agreement), the parties hereto
do hereby agree as follows:

 

Execution and Delivery of Reorganization Agreement. 
Merrell has agreed to execute and deliver the Reorganization Agreement
as one of the Lone Moose Principal Shareholders, as required by Southwest as a
condition to the Reorganization, with the understanding that Merrell will be
compensated for this service.  Lone Moose
acknowledges that all services required to have been provided to Lone Moose by
Merrell under this Agreement, on his execution and delivery of the
Reorganization Agreement, will have been provided by Merrell, without
qualification.

 

Compensation.  Lone Moose agrees, subject to the Closing of
the Reorganization only, to pay Merrell in full for his services hereunder
$7,500, and Merrell agrees to accept as full consideration of his services
hereunder $7,500, to be paid in full by the issuance of 20,088 pre-dividend
shares of common stock of Lone Moose that are “restricted securities” as
defined in Rule 144 of the Securities and Exchange Commission or approximately
150,000 post-dividend shares of common stock of Lone Moose that are “restricted
securities,” following the planned 7.4672 dividend declared by Lone Moose on
July 2, 2004, that is to take effect on July 13, 2004 (the “Compensation
Shares”).  The only conditions to the
issuance of these shares to Merrell as fully paid shares by Lone Moose shall be
the execution and delivery of the Reorganization Agreement by Merrell and the
Closing of the Reorganization.

 

 

Piggyback Registration Rights.  Merrell shall have Piggyback
Registration Rights (as defined in the Registration Rights Agreement attached
hereto as Exhibit A and incorporated herein by reference) with respect to the
Compensation Shares, at no cost to it or its successors or assigns.

 

Lock-Up/Leak-Out Agreement.  The resale of the Compensation
Shares shall be subject to the terms and provisions of the Lock-Up/Leak-Out
Agreement that is attached hereto as Exhibit B, and Merrell shall execute and
deliver the Lock-Up/Leak-Out Agreement as a condition to receipt of the
Compensation Shares.

 

Covenant as to Transferees.  As a condition to any intended
sale, transfer or assignment of the Compensation Shares, Merrell covenants and
agrees to require any and every subsequent intended transferee of the
Compensation Shares to execute both a subscription agreement or similar
agreement that includes, without limitation, representations as to such
intended transferee’s investment intent and that the transferee meets the
definition of “accredited investor” as defined in Regulation D of the
Securities and Exchange Commission. 
Merrell acknowledges and agrees that satisfying such requirements is
important to maintain the availability of exemptions from applicable securities
laws and as such is a fundamental condition and covenant of Merrell.

 

“Accredited Investor” and Access to Information. 
Merrell represents and warrants that he is an “accredited investor” as
that term is defined in Regulation D of the Securities and Exchange Commission,
and that prior to the execution and delivery of this Agreement, that he had
access to all reports and/or registration statements filed with the Securities
and Exchange Commission by Lone Moose during the past 12 months and earlier.

 

Further Assurances.  In case at any time after the
execution and delivery of this Agreement any further action is necessary or
desirable to carry out the purposes of this Agreement, each of the parties will
take such further action (including the execution and delivery of such further instruments
and documents) as the other party reasonably may request, all the sole cost and
expense of the requesting party.

 

Notices.  All notices, requests and other
communications hereunder must be in writing and will be deemed to have been
duly given only if delivered personally against written receipt or by facsimile
transmission with answer back confirmation or mailed (postage prepaid by
certified or registered mail, return receipt requested) or by overnight courier
to the parties at the following addresses or facsimile numbers:

 

	
  If
  to Lone Moose:

  	
   

  	
  Lone
  Moose Adventures, Inc.

  
	
   

  	
   

  	
  1438
  East 8850 South

  
	
   

  	
   

  	
  Sandy,
  Utah 84093

  
	
   

  	
   

  	
  Facsimile
  No.: 801-942-7753

  

 

2

 

	
  with
  copies to:

  	
   

  	
  Leonard
  W. Burningham, Esq.

  
	
   

  	
   

  	
  455
  East 500 South #205

  
	
   

  	
   

  	
  Salt
  Lake City, Utah 84111

  
	
   

  	
   

  	
  Facsimile
  No.: 801-355-7126

  
	
   

  	
   

  	
   

  
	
  If
  to Merrell:

  	
   

  	
  David
  C. Merrell

  
	
   

  	
   

  	
  Salt
  Lake City, Utah 84117

  
	
   

  	
   

  	
  9005
  Cobble Canyon Lane

  
	
   

  	
   

  	
  Sandy,
  Utah 84093

  
	
   

  	
   

  	
  Facsimile
  No.: 801-453-1111

  

 

All
such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number
as provided in this Section, be deemed given upon proof of receipt, and (iii)
if delivered by mail in the manner described above to the address as provided
in this Section, be deemed given upon receipt (in each case regardless of
whether such notice, request or other communication is received by any other
person to whom a copy of such notice, request or other communication is to be
delivered pursuant to this Section).  Any
party from time to time may change its address, facsimile number or other
information for the purpose of notices to that party by giving notice
specifying such change to the other parties hereto.

 

Entire Agreement.  This Agreement (and all exhibits and
schedules attached hereto, all other documents delivered in connection
herewith) supersede all prior discussions and agreements among the parties with
respect to the subject matter hereof and contains the sole and entire agreement
among the parties hereto with respect thereto.

 

Waiver.  Any term or condition of this Agreement may
be waived at any time by the party that is entitled to the benefit thereof, but
no such waiver shall be effective unless set forth in a written instrument duly
executed by or on behalf of the party waiving such term or condition. No waiver
by any party hereto of any term or condition of this Agreement, in any one or
more instances, shall be deemed to be or construed as a waiver of the same or
any other term or condition of this Agreement on any future occasion.  All remedies, either under this Agreement or
by law or otherwise afforded, will be cumulative and not alternative.

 

No Third Party Beneficiary.  The terms and provisions of
this Agreement are intended solely for the benefit of each party hereto and
their respective successors or permitted assigns, and it is not the intention
of the parties to confer third party beneficiary rights upon any other person.

 

No Assignment; Binding Effect.   Neither this Agreement nor
any right, interest or obligation hereunder may be assigned by any party hereto
without the prior written consent of the other party hereto, which consent
shall not be unreasonably withheld.  This
Agreement is binding upon, inures to the benefit of and is enforceable by the
parties hereto and their respective

 

3

 

successors
and assigns.

 

Severability.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
(iii) the remaining provisions of this Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom and (iv) in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically as a part
of this Agreement a legal, valid and enforceable provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and
mutually acceptable to the parties herein.

 

Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Utah applicable to
contracts executed and performed in such State, without giving effect to
conflicts of laws principles.

 

Consent to Jurisdiction and Forum Selection.  The
parties irrevocably agree that any legal action or proceeding with respect to
this Agreement or for the recognition and enforcement of any judgment in
respect hereof brought by the other party hereto or its successors or assigns
will be brought and determined in either the Utah courts or the United States
District Courts for Utah, and each party hereby irrevocably submits with regard
to any such action or proceeding for itself and in respect to its property,
generally and unconditionally, to the exclusive jurisdiction of the aforesaid
courts.  Each of the parties irrevocably
waives, and agrees not to assert, by way of motion, as a defense, counterclaim
or otherwise, in any action or proceeding with respect to this Agreement, (a)
any claim that it is not personally subject to the jurisdiction of the above
named courts for any reason other than the failure to lawfully serve process,
(b) that it or its property is exempt or immune from jurisdiction of any such
court or from any legal process commenced in such courts (whether through
service of notice, attachment prior to judgment, attachment in aid of execution
of judgment, execution of judgment or otherwise), (c) to the fullest extent
permitted by applicable law, that (i) the suit, action or proceeding in any
such court is brought in an inconvenient forum, (ii) the venue of such suit,
action, or proceeding is improper and (iii) this Agreement, or the subject
matter hereof, may not be enforced in or by such courts and (d) any right to
trial by jury.  Upon the Closing of the
Reorganization, all references to “Utah” with respect to federal and state
courts shall automatically and without further action be changed to
“Minnesota.”

 

Construction.  No provision of this Agreement shall be
construed in favor of or against any party on the ground that such party or its
counsel drafted the provision. Any remedies provided for herein are not
exclusive of any other lawful remedies which may be available to either
party.  This Agreement shall at all times
be construed so as to carry out the purposes stated herein.

 

4

 

Counterparts.  This Agreement may be executed in any number
of counterparts and by facsimile, each of which will be deemed an original, but
all of which together will constitute one and the same instrument.

 

Attorney’s Fees.  In the event any action is brought for
enforcement or interpretation of this Agreement, the prevailing party shall be
entitled to recover reasonable attorney’s fees and costs incurred in said
action.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
    7/16/04

  	
   

  	
  /s/
  David C. Merrell

  	
   

  
	
   

  	
  David
  C. Merrell

  
	
   

  	
   

  
	
  Lone
  Moose Adventures, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted
  this 29th day of

  	
   

  
	
  June,
  2004.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
    /s/
  Chistopher B. Glover

  	
   

  	
   

  
	
   

  	
  Christopher
  B. Glover, President

  	
   

  	
   

  
							

 

5Exhibit
10.21

 

Lone
Moose Adventures, Inc.

1438
East 8850 South

Sandy,
Utah 84093

 

	
  Attention:

  	
   

  	
  Christopher
  B. Glover, President

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Compensation Agreement
  (the “Agreement”) respecting the introduction by Jenson Services, Inc., a
  Utah corporation (“Jenson Services”), of the reorganization proposal (the
  “Reorganization”) of Southwest Casino and Hotel Corp., a Minnesota
  corporation (“Southwest”), to Lone Moose Adventures, Inc., a Nevada
  corporation (“Lone Moose”)

  

 

Dear
Mr. Glover:

 

In
consideration of the introduction to Lone Moose of the Southwest Reorganization
that is outlined in the Agreement and Plan of Reorganization (the “Merger
Agreement”) between these parties and a to be formed Minnesota wholly-owned
subsidiary of Lone Moose that will merge with and into Southwest with Southwest
being the Surviving Corporation (as defined in the Merger Agreement), and
subject to the Closing (as defined in the Merger Agreement) of such
Reorganization, the parties hereto do hereby agree as follows:

 

Introduction.
 Jenson Services agreed to and has
introduced Lone Moose to the Southwest Reorganization, with the understanding
that Jenson Services would be compensated for this introduction.  Lone Moose acknowledges that all services
required to have been provided to Lone Moose by Jenson Services under this
Agreement have been provided by Jenson Services, without qualification.

 

Compensation.  Lone Moose agrees, subject to the Closing of
the Reorganization only, to pay Jenson Services in full for its introduction
services hereunder, and Jenson Services agrees to accept as full consideration
of its introduction services hereunder, 96,380 pre-dividend shares of common
stock of Lone Moose that are “restricted securities” as defined in Rule 144 of
the Securities and Exchange Commission or approximately 719,685 post-dividend
shares of common stock of Lone Moose that are “restricted securities,”
following the planned 7.4672 dividend declared by Lone Moose on July 2,
2004, that is to take effect on July 13, 2004 (the “Compensation
Shares”).  The only condition to the
issuance of these shares to Jenson Services as fully paid shares by Lone Moose
shall be the Closing of the Reorganization.

 

Piggyback Registration Rights.  Jenson Services shall have
Piggyback Registration Rights (as defined in the Registration Rights Agreement
attached hereto as Exhibit

 

 

A and incorporated herein
by reference) with respect to the Compensation Shares, at no cost to it or its
successors or assigns.

 

Lock-Up/Leak-Out Agreement.  The resale of the Compensation
Shares shall be subject to the terms and provisions of the Lock-Up/Leak-Out
Agreement that is attached hereto as Exhibit B, and Jenson Services shall
execute and deliver the Lock-Up/Leak-Out Agreement as a condition to receipt of
the Compensation Shares.

 

Covenant as to Transferees.  As a condition to any intended
sale, transfer or assignment of the Compensation Shares, Jenson Services
covenants and agrees to require any and every subsequent intended transferee of
the Compensation Shares to execute both a subscription agreement or similar
agreement that includes, without limitation, representations as to such
intended transferee’s investment intent and that the transferee meets the
definition of “accredited investor” as defined in Regulation D of the
Securities and Exchange Commission. Jenson Services acknowledges and agrees
that satisfying such requirements is important to maintain the availability of
exemptions from applicable securities laws and as such is a fundamental
condition and covenant of Jenson Services.

 

“Accredited Investor” and Access to Information. 
Jenson Services represents and warrants that it is an “accredited
investor” as that term is defined in Regulation D of the Securities and
Exchange Commission, and that prior to the execution and delivery of this
Agreement, that it had access to all reports and/or registration statements
filed with the Securities and Exchange Commission by Lone Moose during the past
12 months and earlier.

 

Further Assurances.  In case at any time after the execution
and delivery of this Agreement any further action is necessary or desirable to
carry out the purposes of this Agreement, each of the parties will take such
further action (including the execution and delivery of such further
instruments and documents) as the other party reasonably may request, all the
sole cost and expense of the requesting party.

 

Notices.  All notices, requests and other
communications hereunder must be in writing and will be deemed to have been
duly given only if delivered personally against written receipt or by facsimile
transmission with answer back confirmation or mailed (postage prepaid by
certified or registered mail, return receipt requested) or by overnight courier
to the parties at the following addresses or facsimile numbers:

 

	
  If
  to Lone Moose:

  	
   

  	
  Lone
  Moose Adventures, Inc.

  
	
   

  	
   

  	
  1438
  East 8850 South

  
	
   

  	
   

  	
  Sandy,
  Utah 84093

  
	
   

  	
   

  	
  Facsimile
  No.: 801-942-7753

  

 

2

 

	
  with
  copies to:

  	
   

  	
  Leonard
  W. Burningham, Esq.

  
	
   

  	
   

  	
  455
  East 500 South #205

  
	
   

  	
   

  	
  Salt
  Lake City, Utah 84111

  
	
   

  	
   

  	
  Facsimile
  No.: 801-355-7126

  
	
   

  	
   

  	
   

  
	
  If
  to Jenson Services:

  	
   

  	
  Jenson
  Services, Inc.

  
	
   

  	
   

  	
  4685
  South Highland Drive, Suite 202

  
	
   

  	
   

  	
  Salt
  Lake City, Utah 84117

  
	
   

  	
   

  	
  Facsimile
  No.: 801-278-9290

  

 

All
such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number
as provided in this Section, be deemed given upon proof of receipt, and (iii)
if delivered by mail in the manner described above to the address as provided
in this Section, be deemed given upon receipt (in each case regardless of
whether such notice, request or other communication is received by any other
person to whom a copy of such notice, request or other communication is to be
delivered pursuant to this Section).  Any
party from time to time may change its address, facsimile number or other
information for the purpose of notices to that party by giving notice specifying
such change to the other parties hereto.

 

Entire Agreement.  This Agreement (and all exhibits and
schedules attached hereto, all other documents delivered in connection
herewith) supersede all prior discussions and agreements among the parties with
respect to the subject matter hereof and contains the sole and entire agreement
among the parties hereto with respect thereto.

 

Waiver.  Any term or condition of this Agreement may
be waived at any time by the party that is entitled to the benefit thereof, but
no such waiver shall be effective unless set forth in a written instrument duly
executed by or on behalf of the party waiving such term or condition. No waiver
by any party hereto of any term or condition of this Agreement, in any one or
more instances, shall be deemed to be or construed as a waiver of the same or
any other term or condition of this Agreement on any future occasion.  All remedies, either under this Agreement or
by law or otherwise afforded, will be cumulative and not alternative.

 

No Third Party Beneficiary.  The terms and provisions of
this Agreement are intended solely for the benefit of each party hereto and
their respective successors or permitted assigns, and it is not the intention
of the parties to confer third party beneficiary rights upon any other person.

 

No Assignment; Binding Effect.   Neither this Agreement nor
any right, interest or obligation hereunder may be assigned by any party hereto
without the prior written consent of the other party hereto, which consent
shall not be unreasonably withheld.  This
Agreement is binding upon, inures to the benefit of and is enforceable by the
parties hereto and their respective successors and assigns.

 

3

 

Severability.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will be fully
severable, (ii) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
(iii) the remaining provisions of this Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom and (iv) in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically as a part
of this Agreement a legal, valid and enforceable provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and
mutually acceptable to the parties herein.

 

Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Utah applicable to
contracts executed and performed in such State, without giving effect to
conflicts of laws principles.

 

Consent to Jurisdiction and Forum Selection.  The
parties irrevocably agree that any legal action or proceeding with respect to
this Agreement or for the recognition and enforcement of any judgment in
respect hereof brought by the other party hereto or its successors or assigns
will be brought and determined in either the Utah courts or the United States
District Courts for Utah, and each party hereby irrevocably submits with regard
to any such action or proceeding for itself and in respect to its property,
generally and unconditionally, to the exclusive jurisdiction of the aforesaid
courts.  Each of the parties irrevocably
waives, and agrees not to assert, by way of motion, as a defense, counterclaim
or otherwise, in any action or proceeding with respect to this Agreement, (a)
any claim that it is not personally subject to the jurisdiction of the above
named courts for any reason other than the failure to lawfully serve process,
(b) that it or its property is exempt or immune from jurisdiction of any such
court or from any legal process commenced in such courts (whether through
service of notice, attachment prior to judgment, attachment in aid of execution
of judgment, execution of judgment or otherwise), (c) to the fullest extent
permitted by applicable law, that (i) the suit, action or proceeding in any
such court is brought in an inconvenient forum, (ii) the venue of such suit,
action, or proceeding is improper and (iii) this Agreement, or the subject
matter hereof, may not be enforced in or by such courts and (d) any right to
trial by jury. Upon the Closing of the Reorganization, all references to “Utah”
with respect to federal and state courts shall automatically and without
further action be changed to “Minnesota.”

 

Construction.  No provision of this Agreement shall be
construed in favor of or against any party on the ground that such party or its
counsel drafted the provision. Any remedies provided for herein are not
exclusive of any other lawful remedies which may be available to either
party.  This Agreement shall at all times
be construed so as to carry out the purposes stated herein.

 

Counterparts.  This Agreement may be executed in any number
of counterparts

 

4

 

and
by facsimile, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

 

Attorney’s Fees.  In the event any action is brought for
enforcement or interpretation of this Agreement, the prevailing party shall be
entitled to recover reasonable attorney’s fees and costs incurred in said
action.

 

	
   

  	
  Very
  truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Jenson
  Services, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
    7/16/04

  	
   

  	
  By

  	
   /s/
  Travis T. Jenson

  	
   

  
	
   

  	
   

  	
  Travis
  T. Jenson, Vice President

  
	
   

  	
   

  	
   

  
	
  Lone
  Moose Adventures, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted
  this 29th day of

  	
   

  	
   

  
	
  June,
  2004.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
    /s/
  Chistopher B. Glover

  	
   

  	
   

  	
   

  
	
   

  	
  Christopher
  B. Glover, President

  	
   

  	
   

  	
   

  
									

 

5

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