TERMINATION AGREEMENT dated for reference February 28, 2005 AMONG:
Exhibit
10.10
TERMINATION
AGREEMENT dated for reference February 28, 2005
AMONG:
NEARSHORE
PETROLEUM CORPORATION,
an
Alberta
corporation
(“Nearshore”)
AND
NORTHERN
ALBERTA OIL LTD.,
an
Alberta corporation (“Northern”)
AND
SURGE
GLOBAL ENERGY (CANADA), LTD.,
an
Alberta corporation (“Surge”)
WHEREAS:
1. |
Nearshore
and Northern (formerly Mikwec Energy Canada Ltd. by change of name)
are
parties to a “Non-Disclosure/Area of Exclusion Athabasca and Sawn Lake Oil
Sand, Alberta Agreement” (“Nearshore-Northern
Agreement”)
dated November 19, 2003 pursuant to which, inter
alia, Nearshore
is provided with the option to purchase up to 100% of any interests
acquired by Northern within the specified of Exclusion Lands
(“Nearshore
Rights”);
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2.
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Surge
plan entered into the Farmout Agreement dated February 25, 2005 with
Northern and Deep Well Oil & Gas, Inc. (“Farmout
Agreement”);
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3.
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The
Farmout Agreement includes an area of mutual interest provision (“AMI”)
and the Nearshore Rights may conflict with Surge’s rights under the AMI;
and
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4.
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Nearshore
and Northern will benefit from the execution and performance of the
Farmout Agreement and, as a result, have agreed to terminate the
Nearshore-Northern Agreement and to enter into this Agreement to
confirm
such termination to Surge.
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NOW
THEREFORE, in consideration of ten ($10) USD dollars paid by Surge to each
of
Nearshore and Northern respectively, Surge’s agreement to enter into the Farmout
Agreement, and other good and valuable consideration (the receipt and
sufficiency of which is hereby acknowledged by each of the parties), the parties
agree as follows:
1.
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Nearshore
and Northern agree with one another, and represent and warrant to
Surge,
that the Nearshore-Northern Agreement (including, without limitation,
the
Nearshore Rights) has been terminated by Nearshore and Northern effective
as of February 17th 2005.
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2.
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Nearshore
and Northern represent and warrant to each other and to Surge that
neither
of such parties has assigned or otherwise alienated its interests
in the
Nearshore-Northern Agreement and that it has all necessary power
and
authority to enter into this Agreement in order to terminate the
Nearshore-Northern Agreement in accordance with the terms
hereof.
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3.
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Nearshore
confirms to Surge that it did not acquire, and it is not entitled
to
acquire, any interests pursuant to the Nearshore-Northern Agreement,
and
there are no unperformed obligations or liabilities under that
agreement.
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4.
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Nearshore
and Northern intend that Surge will rely on this Agreement in order
to
enter into the Farmout Agreement.
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5. |
Nearshore
forever releases and discharges Northern and Surge from any and all
claims
of any kind that Nearshore may have, or have had, against Northern
or
Surge in relation to the Nearshore - Northern
Agreement.
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6.
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(a)
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No
waiver by Surge of any breach (whether actual or anticipated) of
any of
the covenants, provisions or conditions herein contained shall take
effect
or be binding upon Surge unless the same is expressed in writing
executed
by an officer of Surge. Any waiver so given shall extend only to
the
particular breach so waived and shall not limit or affect any rights
with
respect to any other or future breach whether of a similar or dissimilar
nature.
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(b)
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The
parties acknowledge and confirm that this Agreement was negotiated
and
prepared by the parties with the advice of their respective legal
counsel
to the extent deemed necessary by each of the parties, and was not
prepared by one party to the exclusion of any other party and,
accordingly, should not be construed against either party by reason
of its
preparation, negotiation, or
drafting.
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(c)
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If
any term of this Agreement is or becomes invalid, illegal or unenforceable
in any jurisdiction, such invalidity, illegality or unenforceability
shall
not affect the validity, legality or enforceability of any other
term of
this Agreement and such invalid, illegal or unenforceable term shall
be,
as to such jurisdiction, severable from this
Agreement.
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(d)
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This
Agreement shall be conclusively deemed for all purposes whatsoever
to be
made under and for all purposes to be governed by and construed in
accordance with the laws of the Province of Alberta and of Canada
applicable therein and shall be treated in all respects as an Alberta
law
contract. Each party agrees that any action or proceedings with respect
to
this Agreement shall be brought in the courts of Alberta at
Calgary.
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(e)
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No
amendment or other variation of the provisions of this Agreement
shall be
binding on the parties or any of them unless it is evidenced in writing
executed by an officer of that
party.
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(t)
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Each
party shall, from time to time and at all times hereafter, do all
such
further acts and execute and deliver all such further documents as
may be
reasonably required by another party in order to perform and carry
out the
terms and the intent of this
Agreement.
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(g)
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This
Agreement may be executed in any number of separate counterparts
with the
same effect as if all parties had signed the same copy of this Agreement.
All counterparts shall be construed together and constitute one agreement.
Each party shall be entitled to rely on the delivery of executed
facsimile
copies of counterpart execution pages of this Agreement and such
facsimile
copies shall be legally effective to create a valid and binding agreement
among the parties.
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(h)
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This
Agreement shall enure to the benefit of and be binding upon the parties
hereto and their respective successors and permitted
assigns.
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IN
WITNESS WHEREOF each of the parties has caused this Agreement to be executed
by
its proper officers, duly authorized in that regard, to be effective as of
the
date first above written.
NEARSHORE
PETROLEUM CORPORATION
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Per:
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/s/
Xxxxxx Xxxxx
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Per:
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President
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NORTHERN
ALBERTA OIL LTD.
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Per:
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/s/
Xxxxxx Xxxxxxx
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Per:
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Director
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SURGE
GLOBAL ENERGY (CANADA), LTD.
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Per:
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/s/
Xxxx X. Xxxxx
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Per:
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CEO
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