Document:

Exhibit 10.20

 

senior
executive

   

EXECUTIVE
EMPLOYMENT AGREEMENT

 

THIS AGREEMENT made as of the 15th
day of March, 2018, the (“Executed Date”) and is effective as of March 15th, 2018, the (“Effective Date”),
between:

 

Mr. David Sealock, of Calgary, Alberta
(the “Executive”)

 

and

 

Petroteq Energy Inc., a body corporate
formed

under the laws of Canada (“Petroteq” or the “Corporation”).

 

WHEREAS Petroteq
is a Canadian-registered holding company, publicly trading on the TSX Venture Exchange (Symbol: PQE) and the OTCQX trading platform
(Symbol: PQEFF). Its offices are located in Toronto, Ontario, Canada, Los Angeles, California and its initial plant location in
Vernal, Utah. Petroteq is focused on value creation through the development and implementation of proprietary technologies for
the environmentally safe extraction of heavy oils from oil sands, oil shale deposits and shallow oil deposits;

 

AND WHEREAS
Petroteq wishes to retain the services of the Executive to assist Petroteq in the furtherance of its heavy oils from oil sands,
oil shale deposits and shallow oil deposits operations, and equity and debt financing, engineering and development and other energy
related businesses;

 

NOW THEREFORE THIS
AGREEMENT WITNESSES THAT IN CONSIDERATION of the mutual covenants and agreements herein contained and for other good and valuable
consideration, it is agreed by the parties hereto as set forth below.

 

Article
1

DEFINITIONS

 

		1.1	In this agreement, the following terms shall have the following meanings.

 

		(a)	“Board” means the board of directors of the Corporation.

 

		(b)	“Base Salary” shall mean the Executive’s current annual base salary
provided for in Article 3.1 as increased from time to time.

 

		(c)	“Change of Control” means either

 

		(i)	the sale to a person or acquisition by a person not affiliated with the Corporation of net assets
of the Corporation having a value greater than 50% of the fair market value of the net assets of the Corporation determined on
a consolidated basis prior to such sale whether such sale or acquisition occurs by way of reconstruction, reorganization, recapitalization,
consolidation, amalgamation, arrangement, merger, transfer, sale or otherwise;

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 2 of 15

    

 

		(ii)	any change in the holding, direct or indirect, of shares of the Corporation by a person not affiliated
with the Corporation as a result of which such person, or a group of persons, or persons acting in concert, or persons associated
or affiliated with any such person or group, are in a position to exercise effective control of the Corporation whether such change
in the holding of such shares occurs by way of takeover bid, reconstruction, reorganization, recapitalization, consolidation, amalgamation,
arrangement, merger, transfer, sale or otherwise; and for the purposes of this Agreement, a person or group of persons holding
shares or other securities in excess of the number which, directly or following conversion thereof, would entitle the holders thereof
to cast 50% or more of the votes attaching to all shares of the Corporation which, directly or following conversion of the convertible
securities forming part of the holdings of the person or group of persons noted above, may be cast to elect directors of the Corporation
shall be deemed, to be in a position to exercise effective control of the Corporation;

 

		(iii)	any reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement,
merger, transfer, sale or other transaction involving the Corporation where all of the shareholders of the Corporation immediately
prior to such reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale
or other transaction hold greater than 50% of the shares of the Corporation or of the continuing corporation following completion
of such reconstruction, reorganization, recapitalization, consolidation, amalgamation, arrangement, transfer, sale or other transaction;
or

 

		(iv)	any event or transaction which the Board, in its discretion, deems to be a Change of Control.

 

		(d)	“Confidential Information” has the meaning ascribed thereto in section
5.1.

 

		(e)	“Constructive Dismissal” means any material reduction in the responsibilities,
salary or benefits of the Executive without the Executive’s consent.

 

		(f)	“Copies or Representations” means copies, versions, representations or
depictions of any kind or produced in any manner, including photocopies, facsimile or telefax copies, electromagnetic and electronic
versions, computerized versions and any media on which such versions are recorded or stored, plans, diagrams, schematics, blue
prints, technical drawings, technical specifications, graphics or other representations, lists, maps or charts.

 

		(g)	“Disclosure Statement” has the meaning ascribed thereto in section Error!
Reference source not found..

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 3 of 15

    

 

		(h)	“Good Reason” which only applies to Change of Control situation means:

 

(i) a
significant change (other than a change that is clearly consistent with a promotion) in the Executive’s position or duties
(including any position or duties as a director of the Corporation), responsibilities (including without limitation, to whom the
Executive reports and who reports to the Executive), title or office held by the Executive in the Corporation, including any removal
of the Executive from or any failure to re-elect or re-appoint the Executive to any such positions or offices; or

 

(ii) a
material reduction by the Corporation of the Executive’s salary, benefits or any other form of remuneration or any change
in the basis upon which the Executive’s salary, benefits or any other form of remuneration payable by the Corporation is
determined or any failure by the Corporation to increase the Executive’s salary, benefits or any other forms of remuneration
payable by the Corporation in a manner consistent (both as to frequency and percentage increase) with practices in effect from
time to time with respect to the senior executives of the Corporation, whichever is more favourable to the Executive; or

 

(iii) any
failure by the Corporation to continue in effect any benefit, bonus, profit sharing, incentive, remuneration or compensation plan,
stock ownership or purchase plan, pension plan or retirement plan in which the Executive is participating or entitled to participate
from time to time, or the Corporation taking any action or failing to take any action that would adversely affect the Executive’s
participation in or reduce his rights or benefits under or pursuant to any such plan, or the Corporation failing to increase or
improve such rights or benefits on a basis consistent with practices with respect to the senior executives of the Corporation,
whichever is more favourable to the Executive; or

 

(iv) any
breach by the Corporation of any material provision of this Agreement; or

 

(v) the
failure by the Corporation to obtain, in a form satisfactory to the Executive, an effective assumption of the Corporation’s
obligations hereunder by any successor to the Corporation, including a successor to a material portion of its business; or

 

(vi) the good faith determination
by the Executive that the Corporation has requested he misrepresent information to external parties, vendors, shareholders or any
other party.

 

		(i)	“Just Cause”, when used in relation to the termination of employment
of the Executive, includes: (i) any matter that would constitute lawful just cause for dismissal from employment at common law;
(ii) conviction of the Executive of a criminal offence involving dishonesty or fraud or which is likely to injure Petroteq business
or reputation; (iii) misappropriation of any of Petroteq property or assets; (iv) any breach by the Executive of any term of his
employment or this Agreement which has not been cured within ten days of notice to the Executive of such breach; (v) any information,
reports, documents or certificates being intentionally furnished by the Executive to the Board or any committee thereof which the
Executive knows to be either false or misleading either because they include or fail to include material facts; (vi) failure to
perform his duties in a diligent and reasonable manner.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 4 of 15

    

 

		(j)	“Payout Period”, means for the purposes of ARTICLE 10 and 13, a period
of twelve (12) months.

 

		(k)	“Termination Date”, means that date at which the Executive is severed
from the Corporation in accordance with the articles of this Agreement, and which constitutes the Executive’s final day of
active work on Petroteq behalf.

 

Article
2

EMPLOYMENT & DUTIES

 

		2.1	The Executive shall be employed as Chief Executive Officer and of Petroteq as of March 15, 2018,
without a probation period, and such employment shall continue indefinitely until terminated or altered in accordance with this
agreement.

 

		2.2	The Executive shall carry out such duties and responsibilities as directed by the Board, which
duties shall be in keeping with the Executive’s employment as Chief Executive Officer and.

 

		2.3	Unless prevented by ill health, the Executive shall devote full time and attention to the business
of Petroteq and discharge and carry out such duties, functions and powers as are incidental to the position of Chief Executive
Officer, however, it shall not be a violation of this Section 2.3 for the Executive to engage in a voluntary activity, other public
service or private and public Director and or Board designations that does not interfere or are in conflict with the Executive’s
duties under this agreement. In the performance of his duties, the Executive shall act honestly, in good faith and in the best
interests of Petroteq, and shall disclose all interests and activities, and exercise the degree of diligence and responsibility
that a person having the Executive’s expertise and knowledge of the affairs of Petroteq would reasonably be expected to exercise
in comparable circumstances.

 

		2.4	The Executive recognizes that his primary business obligation is to Petroteq and agrees not to
permit the pursuit of other interests to interfere with the fulfillment of his duties in that position, other than business obligations
disclosed to Petroteq at the time of this agreement. The Executive shall, in accordance with applicable law, disclose actual or
potential business conflicts of interest to the Board. Any uncertainty as to whether such a conflict exists shall be raised by
the Executive for determination by the Board, acting reasonably. The Executive shall conduct himself so as to avoid an actual or
potential conflict of interest.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 5 of 15

    

 

Article
3

REMUNERATION

 

		3.1	The Executive will be paid an annual Base Salary of CDN$120,000.00, starting on March 1st,
2018, less required Canadian statutory withholdings. The Base Salary shall be payable in arrears in equal bi-monthly instalments,
unless otherwise agreed upon.

 

		3.2	The Executive shall be entitled to participate in all benefit plans available to senior management
of Petroteq.

 

		3.3	The Executive shall initially be entitled to five (5) weeks paid vacation yearly, subject to increase
from time to time, in accordance with the Corporation’s policies applicable to senior management. Vacation may be taken in
such manner and at such times as the Executive and the Corporation may mutually agree.

 

		3.4	The Executive shall be eligible to grants of Stock Options as determined from time to time by the
Board, or any committee thereof administering Petroteq’s Stock Option plan.

 

		3.5	The Executive shall be eligible to participate in Petroteq bonus plan, the terms of which are set
by the Board, or any committee thereof administering Petroteq bonus plan when and if the Board institutes a bonus plan.

 

		3.6	The Executive shall be eligible to participate in any retirement plan, pension plan, benefits or incentives,
whether or not embodied in a formal plan, offered by Petroteq to its senior management, in the manner and to the extent, if any,
authorized by the Board, or any committee thereof administering Petroteq retirement plan, pension plan, benefits or incentives.

 

		3.7	The Executive’s Base Salary shall be reviewed annually by the Board, or any committee thereof
administering Petroteq executive compensation.

 

Article
4

EXPENSES

 

		4.1	Petroteq shall reimburse the Executive for all reasonable travel and other expenses actually and
reasonably incurred in the performance of his duties on behalf of Petroteq. Reimbursement will be made upon the submission of a
written itemized expense claim and proper supporting documentation whenever practical and in any event for all expenses. Any expenses
in excess of $2,500US shall be submitted to Petroteq for pre-approval.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 6 of 15

    

 

Article
5

NON-DISCLOSURE & CONFIDENTIALITY

 

		5.1	The Executive acknowledges that, as a result of the Executive’s employment by Petroteq, the
Executive shall be making use of or acquiring information about certain matters and things which are confidential to Petroteq and
which information is the exclusive property of Petroteq, including all confidential information acquired by or made available to
the Executive by Petroteq or its representatives, which shall include the terms of this agreement, any other agreements entered
into (or proposed by or to) the Corporation and any security holder’s investment or potential investment in the Corporation
and any information, technology, material or other property of any kind which is confidential or proprietary to the Corporation
or to any supplier, customer, client, agent, employee, director, officer or security holder of the Corporation, including without
limitation: (i) the names, addresses, and purchasing history of, relationship with or investment by (as applicable), and any
other information about the customers, clients, security holders, directors, officers, employees, consultants, agents, suppliers,
private investors, joint venture partners, limited or general partners or other business associates of, the Corporation; (ii) information
related to the Corporation’s intellectual property, proprietary rights and employee inventions and developments; (iii) information
relating to the past, present and contemplated business plans, engineering reports, environmental reports, geological information,
land and lease information, well data, project data, seismic information, financial condition or financial results, practices,
resolutions, products, strategies, pricing policies and lists, services, methods of production and operation, business processes,
gas processing and marketing terms and conditions, general marketing and marketing plans, distribution, installations, facilities,
machinery and equipment, and research and development of the Corporation; (iv) data, correspondence, notes, memoranda, offering
memoranda or other offering document, manuals, financial statements, books and records, documents, financing programs, credit terms,
banking arrangements, legal opinions or other contracts, terms or negotiations of any kind whatsoever related to the assets, financial
condition or business of the Corporation; (v) information which is contained in instructional or informational materials or
manuals; (vi) any information, the disclosure of which could be reasonably expected to affect the competitive position of
the Corporation; (vii) any and all analyses, compilations, notes, data, studies or other material documents derived from the above,
and (viii) originals, and Copies or Representations, of any of the foregoing; but only to the extent that such information
is confidential (collectively, the “Confidential Information”).

 

		5.2	Confidential Information shall not include any information that (i) was in the possession of or
known to the Executive, without any obligation to keep it confidential, before it was disclosed to the Executive by Petroteq or
through the Executive’s involvement with Petroteq; (ii) is or becomes public knowledge through no fault of the Executive;
(iii) is disclosed by Petroteq to another person without any express restriction on its use or disclosure; (iv) is or becomes available
to the Executive from a source other than Petroteq, which source, to the best of the Executive’s knowledge, is legally permitted
to disclose such information and is not under confidentiality restrictions. As a material inducement to Petroteq to employ the
Executive and to pay to the Executive compensation for such services to be rendered to Petroteq by the Executive (it being understood
and agreed by the parties that the compensation shall also be paid and received in consideration), the Executive agrees that the
Executive shall not, except with the prior written consent of Petroteq, or except if the Executive is acting as an employee of
Petroteq solely for the benefit of Petroteq in connection with Petroteq’s business and in accordance with Petroteq’s
business practices and employment policies, at any time during or following the term of the Executive’s employment by Petroteq,
directly or indirectly, disclose, reveal, report, publish, transfer or use for any purpose any of the Confidential Information
which has been obtained or disclosed to the Executive as a result of the Executive’s employment by Petroteq.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 7 of 15

    

 

		5.3	The Executive hereby waives all moral rights and shall assign to Petroteq any interest in any and
all inventions, improvements and ideas (whether or not patentable) which the Executive may make or conceive during the period and
in the course of and related to his employment with Petroteq, and which relate or are applicable to any phase of Petroteq’s
business, and the Executive hereby agrees to execute any reasonable document and do any reasonable act reasonably necessary to
perform the Executive’s duties under this Section 5.3. Any such invention, improvement, or idea shall be the exclusive property
of Petroteq and its successors and assigns. The Executive also affirms that if any such invention, improvement, or idea shall be
deemed confidential by Petroteq, he will not disclose any such invention, improvement, or idea without prior written authorization
from Petroteq.

 

		5.4	Disclosure of any Confidential Information shall not be prohibited if the disclosure is directly
pursuant to an order of a court or other governmental body or agency within Canada; provided, however, that the Executive shall
first have given prompt notice to Petroteq of any possible or prospective order (or proceeding pursuant to which any order may
result).

 

Article
6

FIDUCIARY OBLIGATIONS 

 

		6.1	The Executive agrees to be bound by his fiduciary obligations arising pursuant to common law or
equity during his employment with Petroteq and following his resignation or termination from Petroteq for any reason.

 

Article
7

non solicitation

 

		7.1	If the Executive’s employment with Petroteq is terminated by Petroteq at any time, for any
reason, the Executive will be restricted from hiring, or introducing to any third party for the purpose of that party hiring, current
or former employees of Petroteq for a period of twelve months from the date of the Executives resignation or termination, unless
such former employee has been out of the employ of Petroteq for at least four months or was terminated by Petroteq excluding any
unsolicited response to a general advertisement.

 

Article
8

POST TERMINATION RESTRICTIONS REGARDING CORPORATE OPPORTUNITIES

 

		8.1	If the Executive’s employment with Petroteq is terminated by Petroteq or the Executive at
any time for any reason, the Executive will be restricted from pursuing specific business opportunities that he was aware that
Petroteq was actively pursuing at the time of termination for a period equivalent to his severance, but not to exceed a maximum
of twelve months.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 8 of 15

    

  

Article
9

TERMINATION BY EMPLOYER FOR JUST CAUSE

 

		9.1	Petroteq may terminate this agreement and the Executive’s employment for Just Cause with
30 days’ notice to the Executive and without payment to the Executive of any compensation or severance in lieu of notice
past the 30 day notice period.

 

		9.2	Upon termination of employment for Just Cause, the Executive shall only be entitled to any Base
Salary due and owing up to the date of termination, all expenses properly incurred up to the date of termination in the carrying
out of his duties and any accrued but unused vacation pay due and outstanding.

 

Article
10

TERMINATION BY EMPLOYER WITHOUT JUST CAUSE

 

		10.1	If the Executive’s employment is terminated by Petroteq as a result of a Constructive Dismissal
or for any reason other than Just Cause and other than in accordance with Section 12, Petroteq will provide to the Executive within
fifteen business days of the Termination Date:

 

		(a)	all Base Salary earned, but not yet paid up to the Termination Date, less required withholdings;

 

		(b)	the Corporation shall pay a lump sum amount that equals $1,000 for each month in the Payout Period,
to the Executive for the failure to continue all benefits;

 

		(c)	the Corporation shall maintain for the benefit of the Executive its current directors’ and
officers’ insurance policy or an equivalent policy, subject in either case to terms and conditions no less advantageous to
the Executive than those contained in the policy in effect on the date hereof, covering claims made at any time prior to or within
two years after the Executive ceases to be employed by the Corporation; and

 

		(d)	subject to section 4.1, reimbursement of out-of-pocket expenses incurred but not yet paid up to
the Termination Date;

 

provided that
the Executive shall deliver to Petroteq a duly executed full and final release in favour of Petroteq, in a form reasonably satisfactory
to Petroteq, acting reasonably and limited to employment obligations and specifically excluding indemnity obligations and written
resignations of all officer and director positions held on the Corporation or its subsidiaries.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 9 of 15

    

 

Article
11

PERMANENT
DISABILITY OF EXECUTIVE 

 

		11.1	“Permanent Disability” means the mental or physical state of the Executive is such,
that:

 

		(a)	the Executive has to a substantial degree been unable, due to illness, disease, affliction, mental
or physical disability or similar cause, to fulfill his obligations as an employee or officer of the Corporation either for any
consecutive two 2) month period or for any period of three (3) months (whether or not consecutive) in any consecutive twelve (12)
month period; or

 

		(b)	a court of competent jurisdiction has declared the Executive to be mentally incompetent of incapable
of managing his affairs;

 

provided that,
in either case, the Permanent Disability shall be acknowledged and accepted by the Corporation’s long-term disability insurer,
if any.

 

11.2        Termination
Upon Permanent Disability of Executive

 

		(a)	If the Executive shall suffer a Permanent Disability, the employment of the Executive may be terminated
by the Corporation upon giving of notice of at least thirty (30) days; provided that such termination does not adversely affect
the Executive’s entitlement to long-term disability benefits under the Corporation’s benefit plan, if applicable. Notwithstanding
anything contained in this Agreement or elsewhere, in the event of termination pursuant to the provisions of Article 11, the Corporation
shall pay to the Executive (or his trustee) a sum equal to one quarter (1⁄4) his annual Base Salary, together with payment
of accrued but unpaid salary and vacation pay to the Termination Date, and the Executive shall continue to be entitled to such
insurance and other benefits which may be provided pursuant to any long-term disability plan or the benefits plan of the Corporation
in effect at the time, provided the Executive (or his trustee) provides the Corporation with full and final, duly executed release
in favour of Petroteq, in a form reasonably satisfactory to substantiate a written resignation of all officer and director positions
held in the Corporation and its subsidiaries.

 

Article
12

TERMINATION - DEATH OF THE EXECUTIVE

 

		12.1	This Agreement and the Executive’s employment shall be deemed to have terminated upon the
death of the Executive. Petroteq shall only be obligated to pay to the Executive’s designated beneficiary, within fifteen
(15) business days of receipt of notice of the Executive’s death, the following payments:

 

		(a)	all Base Salary earned but not yet paid up to the date of the Executive’s death, less required
withholdings;

 

		(b)	all vacation pay that is associated with vacation time carried over from any previous period(s)
and appropriately approved, and all accrued but unused vacation pay, less required withholdings; and

 

		(c)	subject to section 4.1, reimbursement of out-of-pocket expenses incurred but not yet paid up to
the date of the Executive’s death;

 

		(d)	any bonus or other incentive which has been declared and earned but not yet paid.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 10 of 15

    

 

Article
13

CHANGE OF CONTROL

 

		13.1	In the event of a Change of Control, together with a Good Reason, the Executive may elect to terminate
this Agreement within fifteen days of the later of the date of the Change of Control or the date of the event of Good Reason (the
“Termination Date”) and Petroteq will provide to the Executive within fifteen (15) business days of the Termination
Date:

 

		(a)	all Base Salary earned, but not yet paid up to the Termination Date, less required withholdings;

 

		(b)	all accrued but unused vacation pay, less required withholdings;

 

		(c)	the Corporation shall maintain for the benefit of the Executive its current directors’ and
officers’ insurance policy or an equivalent policy, subject in either case to terms and conditions no less advantageous to
the Executive than those contained in the policy in effect on the date hereof, covering claims made at any time prior to or within
two years after the Executive ceases to be employed by the Corporation; and

 

		(d)	subject to section 4.1, reimbursement of out-of-pocket expenses incurred but not yet paid up to
the Termination Date;

 

provided that
the Executive shall deliver to Petroteq a duly executed full and final release in favour of Petroteq, in a form reasonably satisfactory
to Petroteq, acting reasonably and limited to employment obligations and specifically excluding indemnity obligations, and written
resignation of all officer and director positions held in the Corporation and its subsidiaries.

 

Article
14

Corporate Indemnity

 

		14.1	The Executive will be indemnified by Petroteq in accordance with the provisions of Petroteq’s
Bylaws and the indemnity agreement, executed by the parties on the Effective Date, for actions brought against him for the performance
of the Executive’s duties and such indemnity agreement shall indemnify the executive to the fullest extent permitted by law.
The Corporation will maintain Directors and Officers Liability Insurance and Errors and Omissions Insurance with a minimum coverage
of up to $3,000,000.00 per occurrence.

 

Article
15

RESIGNATION

 

		15.1	The Executive shall provide Petroteq with twelve weeks advance written notice of resignation. If
Petroteq materially breaches this Agreement, and such breach is not cured withinfifteen business days of Petroteq receiving notice
of such breach, the Executive may resign immediately without any further prior written notice to Petroteq under the terms set out
in this Agreement. Internal changes such as a corporate reorganization, variation in reporting structures other than Senior Executive
assignments, consolidation, or any other internal corporate arrangement, or otherwise, for the purposes of this Agreement, does
not constitute a breach of this Agreement.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 11 of 15

    

 

Article
16

GENERAL

 

		16.1	This Agreement shall be construed and enforced in accordance with, and the rights of the parties
hereto shall be governed by, the laws of the Province of Alberta and the federal laws of Canada applicable therein. Each of the
parties hereto hereby irrevocably attorns to the jurisdiction of the courts of the Province of Alberta.

 

Article
17

NOTICES

 

		17.1	Any notice or written communication which must be given or sent under this Agreement shall be given
or sent by hand or courier delivery or by email, facsimile transmission and if delivered:

 

		(a)	by hand or courier, it shall be deemed to have been validly given or received on the day of delivery
to the current address under this Section 17, provided that any delivery made after 4:00 p.m. (local time) on a business day or
on a day other than a business day shall be deemed to be received on the next following business day; or

 

		(b)	by email, facsimile, it shall be deemed to have been validly given or received on the day sent,
if sent prior to 4:00 p.m. (local time) at the place of receipt on a business day, and otherwise on the business day following
the day of transmission by email or facsimile, to the current fax number or email under this Section 17 as it may be changed pursuant
to Section 17.2.

 

		17.2	A party may, at any time, change its named recipient, address, email or facsimile number for the
purposes of service by written notice to the other party hereto; provided that, until changed, the contact details shall be:

 

		(a)	in the case of the Executive, to the last address on the personnel records of Petroteq; or

 

Mr. David Sealock

#####

#####

Email: #####

 

		(b)	in the case of Petroteq Resources:

 

Petroteq Energy Inc.

4370 Tujunga Ave., Suite 320

Studio City, CA 91604

Attention: Mr. Aleksandr Blyumkin, Chairman of the Board

Fax: 310-358-3148

Email: ######

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 12 of 15

    

 

Article
18

ENTIRE AGREEMENT

 

		18.1	This Agreement constitutes the entire agreement between the parties hereto with respect to the
employment of the Executive with Petroteq, and cancels and supersedes all prior agreements and understandings between the parties
hereto with respect to the subject matter hereof. This Agreement may not be amended or modified in any way except by written instrument
signed by the parties hereto;

 

Article
19

SEVERABILITY

 

		19.1	In the event that any provisions of this Agreement shall be held by a court or another tribunal
of competent jurisdiction to be unenforceable, such provision will be eliminated to the minimum extent necessary so that this Agreement
shall otherwise remain in full force and effect.

 

Article
20

survival

 

		20.1	Executive’s obligations under Section 5 through Section 8 and shall survive the termination
of this Agreement, and the Corporation’s obligations under Section 14 shall survive the termination of this Agreement.

 

Article
21

TIME

 

		21.1	Time shall in all respects be of the essence of this Agreement.

 

Article
22

NO ASSIGNMENT

 

		22.1	This Agreement is a personal services agreement and may not be assigned by either party without
the prior written consent of the other party.

 

Article
23

NO WAIVERS

 

		23.1	The waiver by either party of any breach of the terms of this Agreement shall not operate or be
construed as a waiver by that party of any other breach of the same or any other term of this Agreement.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 13 of 15

    

 

ARTICLE 24

PERSONAL DATA AND PRIVACY

 

24.1       The
Executive consents that:

 

		(a)	the personal data relating to the Executive may be maintained and stored by the Corporation electronically
or in any other form; and

 

		(b)	the personal data relating to the Executive may be freely transferred and shared between the Corporation
and its subsidiaries irrespective of where the offices of such entities are physically located.

 

		24.2	The Executive acknowledges and agrees that the Corporation has the right to collect, use and disclose
the Executive’s personal information for purposes relating to the Executive’s employment with the Corporation, including:

 

		(a)	ensuring that the Executive is paid for the services
performed for the Corporation;

 

		(b)	administering any benefits to which the Executive is or may become entitled to, including medical,
dental, disability, and life insurance benefits and/or share options. This shall include the disclosure of the Executive’s
personal information to any insurance company and/or broker or to any entity that manages or administers the Corporation’s
benefits on behalf the Corporation:

 

		(c)	compliance with any regulatory reporting and withholding requirements relating to the Executive’s
employment, including required disclosure to shareholders;

 

		(d)	enforcing the Corporation’s policies including those relating to the proper use of electronic
communications network and to comply with applicable laws; and

 

		(e)	in the event of a potential sale or transfer of all or part of the shares or assets of the Corporation,
disclosing to any potential acquiring organizations the Executive’s personal information solely for the purpose of determining
the value of the Corporation and its assets and liabilities and to evaluate the Executive’s position in the Corporation.
If the Executive’s personal information is disclosed to any potential acquiring organization, the Corporation will require
the potential acquiring organization to agree to protect the privacy of the Executive’s personal information in a manner
that is consistent with any policy of the Corporation dealing with privacy that may be in effect from time to time and/or any applicable
law that may be in effect from time to time.

 

    	 	 	 

    
	David Sealock	 
	Executive Director Employment Agreement	Page 14 of 15

    

 

ARTICLE
25

JURISDICTION
AND VENUE 

 

		23.1	This Agreement and all matters arising out of or relating to this Agreement and the Executive’s
employment by Petroteq, for all purposes, shall be governed by and construed in accordance with the laws of California without
regard to conflicts of law principles that would require the laws of any other jurisdiction to apply. Any action or proceeding
by either of the Parties to enforce this Agreement shall be brought only in any state or federal court located in the state of
California, county of Los Angeles. The Parties irrevocably submit to the exclusive jurisdiction of these courts and waive the defense
of inconvenient forum to the maintenance of any action or proceeding in these venues.

 

ARTICLE
26

Counterparts

 

		26.1	This Agreement may be executed in several counterparts,
each of which shall be an original, and such counterpart shall together constitute one and the same instrument.

 

IN WITNESS WHEREOF
the parties have executed this Agreement as of the date first written above.

 

	 	 	/s/
    David Sealock
	Witness	 	David Sealock
	 	 	 
	 	 	Petroteq Energy Inc.
	 	 	 	 
	 	 	Per: 	/s/
    Alexsandr Blyumkin
	 	 	Name: 	Mr. Alexsandr Blyumkin,
	 	 	Title: 	Chairman of the Board

 

    	 	 	 

     

    

 

Schedule A

  

Committee AppointmentsExhibit 10.21

  

DEBT CONVERSION AGREEMENT

(United States Lender)

 

Made as of the 3rd day of August,
2018.

 

B E T W E E N :

PETROTEQ ENERGY INC.

(the “Company”)

  

- and -

 

ALEX BLYUMKIN

(the “Lender”)

  

WHEREAS the Company
is indebted to the Lender in the aggregate amount of US$249,284.76 for reimbursement of expenses of the Company paid for by the
Lender (the “Debt”);

AND WHEREAS the Lender
has agreed to accept 336,871 common shares of the Company (the “Debt Shares”) at a deemed price per share of
US$0.74 in full and final satisfaction and repayment of the Debt.

 

NOW THEREFORE THIS
AGREEMENT WITNESSETH THAT for and in consideration of the mutual premises and agreements hereinafter contained, the sum of $1.00
now paid by each party to the other and other good and valuable consideration (the receipt and sufficiency of which is hereby irrevocably
acknowledged), the parties hereto hereby agree as follows:

 

		1.	Subject to the terms and conditions hereafter contained, the Lender agrees to accept, in full and
final satisfaction of the Debt, the Debt Shares. The Lender further agrees that, upon the issuance and delivery of the Debt Shares
to the Lender, or as the Lender may direct, the Lender shall fully release the Company in respect of the Debt and acknowledges
the full repayment thereof by the Company.

 

		2.	The
                                         issuance of the Debt Shares shall be conditional on (i) the issuance of the Debt Shares
                                         being exempt from the prospectus and registration requirements under applicable securities
                                         laws, the United States Securities Act of 1933, as amended (the “U.S. Securities
                                         Act”) and applicable state securities laws, (ii) approval of this Agreement
                                         by the directors of the Company, (iii) the Company receiving final approval from the
                                         TSX Venture Exchange (the “TSXV”) or any other applicable stock exchange
                                         for the issuance and listing of the Debt Shares, and (iv) the closing of this Agreement
                                         (the “Closing”) taking place no later than thirty (30) business days
                                         subsequent to the date hereof, or such later time the parties hereto agree.

 

		3.	The Company hereby represents and warrants to and covenants with the Lender as follows, and acknowledges
that the Lender is relying thereon, both at the date hereof and at the Closing:

 

		(a)	The execution and delivery of this Agreement is within the corporate power and authority of the
Company and has been duly authorized by all necessary corporate action and this Agreement constitutes a valid and binding obligation
of the Company enforceable against it and its successors in accordance with its terms, subject to the usual qualification as to
enforceability being limited by bankruptcy and other laws effecting the enforcement of creditors’ rights generally, equitable
remedies being discretionary remedies and rights to indemnification and contribution being limited by applicable laws.

 

		(b)	None of the execution and delivery of this Agreement, the consummation of the transactions contemplated
hereby or the fulfillment of or compliance with the terms and provisions hereof do or will, with the giving of notice, or the lapse
of time or both (i) to the best of the knowledge of the Company, violate any provision of any law or administrative regulation
or any administrative orders, award, judgment or decree applicable to the Company, (ii) conflict with any of the terms, conditions
or provisions of the memorandum of association or articles of the Company or any resolution of its directors or shareholders, or
(iii) conflict with, result in a breach or constitute a default under, or accelerate or permit the acceleration of the performance
required by, any material agreement, covenant, undertaking, commitment, instrument, judgment, order, decree or award to which the
Company is a party or by which it is bound or to which the property of it is subject.

 

    	 	- 1 -	 

     

    

 

		(c)	The Debt Shares will, upon issuance and delivery, be validly issued and outstanding as fully paid
and non-assessable common shares.

 

		(d)	It is a company duly amalgamated and organized under the laws of the Province of Ontario and is
presently in good standing thereunder with full corporate power to own its properties and carry on its business as now being conducted.

 

		4.	The Lender hereby represents and warrants to and covenants with the Company as follows, and acknowledges
that the Company is relying thereon, both at the date hereof and at the Closing:

 

		(a)	The Lender is a resident in the jurisdiction set out on Schedule “A”, attached hereto.
Such address was not created and is not used solely for the purpose of acquiring the Debt Shares and the Lender was solicited to
purchase the Debt Shares in such jurisdiction.

 

		(b)	The Lender has properly completed, executed and delivered to the Company Schedule “A”,
attached hereto, and the information contained therein is true and correct.

 

		(c)	The Lender acknowledges that: (i) the Debt Shares have not been and will not be registered under
the U.S. Securities Act or the securities laws of any state of the United States, and (ii) the offer and sale of Debt Shares contemplated
hereby is being made in reliance on an exemption from such registration requirements in reliance on Rule 506(b) of Regulation D
and/or Section 4(a)(2) of the U.S. Securities Act.

 

		(d)	The information, representations, warranties and covenants contained herein and in Schedule “A”
will be true and correct both as of the date of execution of this Agreement and as of the time of Closing.

 

		(e)	The execution and delivery of this Agreement, the performance and compliance with the terms hereof,
the issuance of the Debt Shares and the completion of the transactions described herein by the Lender will not result in any material
breach of, or be in conflict with or constitute a material default under, or create a state of facts which, after notice or lapse
of time, or both, would constitute a material default under any term or provision, if applicable, of the constating documents,
by laws or resolutions of the Lender, of applicable securities laws or any other laws applicable to the Lender, any agreement to
which the Lender is a party, or any judgment, decree, order, statute, rule or regulation applicable to the Lender.

 

		(f)	The Lender is acquiring the Debt Shares as principal for the Lender’s own account and not
for the benefit of any other person (within the meaning of applicable securities laws) and not with a view to the resale or distribution
of all or any of the Debt Shares.

 

		(g)	This Agreement has been duly authorized, executed and delivered by, and constitutes a legal, valid
and binding agreement of, the Lender. This Agreement is enforceable in accordance with its terms against the Lender.

 

		(h)	If the Lender is (i) a corporation, it is duly incorporated and is validly subsisting under the
laws of its jurisdiction of incorporation and has all requisite legal and corporate power and authority to execute and deliver
this Agreement, to acquire the Debt Shares as contemplated herein and to carry out and perform its obligations under the terms
of this Agreement, (ii) a partnership, syndicate or other form of unincorporated organization, it has the necessary legal capacity
and authority to execute and deliver this Agreement and to observe and perform its covenants and obligations hereunder and has
obtained all necessary approvals in respect thereof, or (iii) an individual, it is of the full age of majority and is legally competent
to execute this Agreement and to observe and perform his or her covenants and obligations hereunder.

 

    	 	- 2 -	 

     

    

 

		(i)	If required by applicable securities laws or the Company, the Lender will execute, deliver and
file or assist the Company in filing such reports, undertakings and other documents with respect to the issue of the Debt Shares
as may be required by any securities commission, stock exchange or other regulatory authority.

 

		(j)	The Lender has been advised to consult their own legal advisors with respect to trading in the
Debt Shares and with respect to the resale restrictions imposed by applicable securities laws of the jurisdiction in which the
Lender resides and other applicable securities laws, and acknowledges that no representation has been made respecting the applicable
hold periods imposed by applicable securities laws or other resale restrictions applicable to such securities which restrict the
ability of the Lender to resell such securities, that the Lender is solely responsible to find out what these restrictions are
and the Lender is solely responsible (and the Company is in no way responsible) for compliance with applicable resale restrictions
and the Lender is aware that it may not be able to resell such securities except in accordance with limited exemptions under applicable
securities laws.

 

		(k)	The Lender has not received or been provided with a prospectus or offering memorandum, within the
meaning of applicable securities laws, or any sales or advertising literature in connection with the issuance of the Debt Shares
to the Lender and the Lender’s decision to acquire the Debt Shares was not based upon, and the Lender has not relied upon,
any verbal or written representations as to facts made by or on behalf of the Company.

 

		(l)	The Lender is not acquiring the Debt Shares with knowledge of material information concerning the
Company which has not been generally disclosed.

 

		(m)	No person has made any written or oral representations (i) that any person will resell or repurchase
the Debt Shares, or (ii) as to the future price or value of the Debt Shares.

 

		(n)	It has not purchased the Debt Shares as a result of any form of general solicitation or general
advertising (as such terms are used in Regulation D under the U.S. Securities Act), including, without limitation, advertisements,
articles, notices or other communications published in any newspaper, magazine or similar media or on the internet, or broadcast
over radio, internet, television or other form of telecommunications, or any seminar or meeting whose attendees have been invited
by general solicitation or general advertising.

 

		5.	The Lender acknowledges and agrees as follows:

 

		(a)	The Debt Shares have not been recommended by the United States Securities and Exchange Commission
or by any state securities commission or regulatory authority.

 

		(b)	The Debt Shares will be issued to the Lender as “restricted securities” (as defined
in Rule 144(a)(3) under the U.S. Securities Act), and the Lender is not acquiring the Debt Shares with a view to any resale, distribution
or other disposition of such securities in violation of United States federal or state securities laws. The Debt Shares shall be
subject to additional statutory resale restrictions under applicable securities laws, and the Lender covenants that it will not
resell the Debt Shares except in compliance with such laws. The Lender acknowledges that it is solely responsible (and the Company
is in no way responsible) for such compliance, and it is the responsibility of the Lender to find out what those restrictions are
and to comply with them before selling the Debt Shares.

 

    	 	- 3 -	 

     

    

 

		(c)	The certificates representing the Debt Shares will bear legends substantially in the following
form and with the necessary information inserted:

 

“Unless
permitted under securities legislation, the holder of this security must not trade thE security before <INSERT THE DATE
THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER THE DATE OF CLOSING>.”

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT
OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO
THE COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE
WITH ALL LOCAL LAWS AND REGULATIONS; (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED
BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS; OR (D) IN A TRANSACTION THAT
DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF CLAUSE
(C) OR (D), THE SELLER FURNISHES TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY
TO THE COMPANY TO SUCH EFFECT. THE PRESENCE OF THIS LEGEND MAY IMPAIR THE ABILITY OF THE HOLDER HEREOF TO EFFECT “GOOD DELIVERY”
OF THE SECURITIES REPRESENTED HEREBY ON A CANADIAN STOCK EXCHANGE.”

 

and subject to the policies of
the TSXV may bear a legend substantially in the following form and with the necessary information inserted:

 

“WITHOUT PRIOR WRITTEN
APPROVAL OF TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF TSX VENTURE EXCHANGE
OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL <INSERT THE DATE THAT IS FOUR (4) MONTHS AND ONE
(1) DAY AFTER THE DATE OF CLOSING>.”

 

		(d)	The Company may be deemed to be an issuer that at a previous time has been an issuer with no or
nominal operations and no or nominal assets other than cash and cash equivalents (a “Shell Company”), and if
the Company is deemed to have been a Shell Company at any time previously, Rule 144 under the U.S. Securities Act may not be available
for resales of the Debt Shares except in very limited circumstances, and the Company is not obligated to make Rule 144 under the
U.S. Securities Act available for resales of the Debt Shares.

 

		(e)	The Lender shall execute, deliver, file and otherwise assist the Company with filing all documentation
required by the applicable securities laws to permit the issuance of the Debt Shares.

 

		(f)	The Company is relying on the representations, warranties and covenants contained herein and in
Schedule “A”, attached hereto, to determine the Lender’s eligibility to acquire the Debt Shares under applicable
securities laws and the Lender agrees to indemnify the Company and its directors and officers, employees and agents against all
losses, claims, costs, expenses, damages or liabilities which any of them may suffer or incur as a result of or arising from reliance
thereon. The Lender undertakes to immediately notify the Company of any change in any statement or other information relating to
the Lender set forth herein and in Schedule “A”, attached hereto, which takes place prior to the time of Closing.

 

    	 	- 4 -	 

     

    

 

		(g)	The Lender hereby waives (i) all prior and all existing breaches, defaults and events of defaults
under or with respect to the Debt, and (ii) all penalty or default interest, late charges, fees, expenses and other similar amounts
due under or with respect to the Debt. This waiver extends only to past and current matters and shall not extend to any future
matter, whether or not similar in nature to any past matter.

 

		(h)	The Lender is responsible for obtaining such legal and tax advice as it considers appropriate in
connection with the execution, delivery and performance of this Agreement.

 

		(i)	The Lender is knowledgeable of securities legislation in the Lender’s jurisdiction of residence
that may have application over the Lender or transactions contemplated herein which would apply to this Agreement and is satisfied
that the Company and the Lender will not breach such laws by completing the transactions contemplated hereby.

 

		(j)	The issuance of the Debt Shares by the Company to the Lender requires the final approval of the
TSXV.

 

		6.	All of the covenants, representations, and warranties contained herein and in Schedule “A”,
attached hereto, shall survive the issuance of the Debt Shares hereunder.

 

		7.	The Lender hereby consents to (a) the disclosure of Personal Information by the Company to the
Exchange (as defined in Appendix 6A of the TSXV) pursuant to TSXV Form 4E Shares for Debt Filing Form (“Form 4E”),
and (b) the collection, use and disclosure of Personal Information by the Exchange for the purposes described in Appendix 6A of
the TSXV or as otherwise identified by the Exchange, from time to time. “Personal Information” means any information
about an identifiable individual, and includes the information contained in the tables, as applicable, found in Form 4E.

 

		8.	Time shall in all respects be of the essence of this Agreement.

 

		9.	This Agreement shall be governed by and construed in accordance with the laws of the Province

of Ontario and the laws of Canada applicable therein and the parties hereby irrevocably attorn to the jurisdiction of the courts
of the Province of Ontario.

 

		10.	Unless otherwise specified, all references to $ refer to lawful currency of the United States.

 

		11.	The parties agree to execute and deliver to each other such further instruments and other written

assurances and to do or cause to be done such further acts or things as may be necessary or convenient to carry out and give effect
to the intent of this Agreement or as any of the parties may reasonably request in order to carry out the transactions contemplated
herein.

 

		12.	This Agreement sets forth the entire agreement among the parties hereto pertaining to the specific
subject matter hereof and replaces and supersedes all prior agreements, understandings, negotiations and discussions, whether oral
or written, of the parties hereto, and there are no warranties, representations or other agreements, whether oral or written, express
or implied, statutory or otherwise, between the parties hereto in connection with the subject matter hereof except as specifically
set forth herein. No supplement, modification, waiver or termination of this Agreement shall be binding unless executed in writing
by the party to be bound thereby.

 

		13.	In case any one or more of the provisions contained in this Agreement should be invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained in this Agreement
shall not in any way be affected or impaired thereby, and any such invalid, illegal or unenforceable provision shall be deemed
to be severable, and the remainder of the provisions of this Agreement shall nevertheless remain in full force and effect.

  

		14.	This Agreement may be executed by the parties hereto in separate counterparts or duplicates each
of which when so executed and delivered shall be an original, but all such counterparts or duplicates shall together constitute
one and the same instrument. A signed facsimile, portable document format (PDF) or telecopied copy of this Agreement shall be effective
and valid proof of execution and delivery.

 

		15.	This Agreement shall be binding upon and shall enure to the benefit of the parties hereto and their
respective heirs, executors, administrators, successors, assigns and legal representatives. This Agreement may not be assigned
without the prior written consent of the parties, which consent may not be unreasonably withheld.

  

[Signature page follows]

 

    	 	- 5 -	 

     

    

  

IN WITNESS WHEREOF the parties have executed
this Agreement as of the date first above written.

  

	 	PETROTEQ ENERGY INC.
	 	 
	 	By:	/s/ Aleksandr Blyumkin
	 	 	Name: Aleksandr Blyumkin
	 	 	Title: Chairman
	 	 	 
	 	/s/ Aleksandr Blyumkin
	 	ALEKSANDR BLYUMKIN

   

    	 	- 6 -	 

     

    

 

SCHEDULE “A”

 

U.S. ACCREDITED INVESTOR CERTIFICATE

 

A “United States investor”
is: (a) any person who is, or is acting for the account of or benefit of, a U.S. Person (as such term is defined in Rule 902(k)
of Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”))
or a person in the United States, and who is acquiring common shares (the “Common Shares”) in the capital of
Petroteq Energy Inc. (the “Company”); (b) any person who was offered Common Shares in the United States; or
(c) any person who executed or delivered the Agreement to which this Certificate is attached in the United States. A U.S. Person
includes: (a) any natural person resident in the United States; (b) any partnership or corporation organized or incorporated under
the laws of the United States; (c) any trust of which any trustee is a U.S. Person; (d) any partnership or corporation organized
outside the United States by a U.S. Person principally for the purpose of investing in securities not registered under the U.S.
Securities Act, unless it is organized or incorporated, and owned, by accredited investors (within the meaning assigned in Rule
501(a) of Regulation D under the U.S. Securities Act.) who are not natural persons, estates or trusts; (e) any estate of which
any executor or administrator is a U.S. Person.

 

The undersigned (the “Subscriber”)
covenants, represents and warrants to the Company that:

 

		(a)	it understands (A) that the Common Shares have not been and will not be registered under the U.S.
Securities Act or the securities laws of any state of the United States; and (B) the offer and sale of Common Shares contemplated
hereby is being made in reliance on an exemption from such registration requirements in reliance on Rule 506(b) of Regulation D
under the U.S. Securities Act and/or Section 4(a)(2) of the U.S. Securities Act;

 

		(b)	it has such knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of an investment in the Common Shares and it is able to bear the economic risk of loss of its entire investment;

 

		(c)	the Company has provided to it the opportunity to ask questions and receive answers concerning
the terms and conditions of the issuance of the Common Shares, and it has had access to such information concerning the Company
(including, if applicable, access to the Company’s public filings available on the Internet at www.sedar.com) as it has considered
necessary or appropriate in connection with its investment decision to acquire the Common Shares, and that any answers to questions
and any request for information have been complied with to the Subscriber’s satisfaction;

 

		(d)	it is acquiring the Common Shares for its own account, or for the account of one or more persons
for whom it is exercising sole investment discretion, (a “Beneficial Purchaser”), for investment purposes only
and not with a view to resale or distribution and, in particular, neither it nor any Beneficial Purchaser for whose account it
is acquiring the Common Shares has any intention to distribute either directly or indirectly the Common Shares in the United States
or to, or for the account or benefit of, a U.S. Person or person in the United States; provided, however, that this paragraph shall
not restrict the Subscriber from selling or otherwise disposing of such securities pursuant to registration thereof pursuant to
the U.S. Securities Act and any applicable state securities laws, or under an exemption from such registration requirements;

 

		(e)	the address of the Subscriber is 9903 Santa Monica Blvd. #3900, Beverly Hills, California
90212 which is the true and correct principal address of the Subscriber and can be relied on by the Company for the purposes
of state blue-sky laws and the Subscriber has not been formed for the specific purpose of acquiring the Common Shares;

 

		(f)	it will not be acquiring the Common Shares as a result of any form of general solicitation or general
advertising (as those terms are used in Regulation D under the U.S. Securities Act), including advertisements, articles, press
releases, notices or other communications published in any newspaper, magazine or similar media or on the Internet, or broadcast
over radio or television, or the Internet or other form of telecommunications, including electronic display, or any seminar or
meeting whose attendees have been invited by general solicitation or general advertising;

 

    	 	- 7 -	 

     

    

 

		(g)	it acknowledges that the Common Shares will be issued as “restricted securities”, as
such term is defined in Rule 144(a)(3) under the U.S. Securities Act, and may not be offered, sold, pledged, or otherwise transferred,
directly or indirectly, without prior registration under the U.S. Securities Act and applicable state securities laws, and it agrees
that if it decides to offer, sell, pledge or otherwise transfer, directly or indirectly, any of the securities absent such registration,
it will not offer, sell, pledge or otherwise transfer, directly or indirectly, such securities, directly or indirectly, except
(i) to the Company, (ii) outside the United States in an “offshore transaction” meeting the requirements of Rule 904
of Regulation S under the U.S. Securities Act, if available, and in compliance with applicable local laws and regulations, (iii)
in compliance with the exemption from the registration requirements under the U.S. Securities Act provided by Rule 144 thereunder,
if available, and in accordance with any applicable state securities or “blue sky” laws, or (iv) in a transaction that
does not require registration under the U.S. Securities Act or any applicable state laws and regulations governing the offer and
sale of securities, and, in the case of each of (iii) and (iv) it has prior to such sale furnished to the Company an opinion of
counsel in form and substance reasonably satisfactory to the Company stating that such transaction is exempt from registration
under applicable securities laws and that the legend referred to in paragraph (h) below may be removed;

 

		(h)	it acknowledges that the certificates representing the Common Shares, as well as all certificates
issued in exchange therefor or in substitution thereof, until such time as is no longer required under the applicable requirements
of the U.S. Securities Act or applicable state securities laws, will bear, on the face of such certificate, the following legend:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“U.S. SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING
SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED,
DIRECTLY OR INDIRECTLY, ONLY (A) TO THE COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S
UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ALL LOCAL LAWS AND REGULATIONS; (C) IN ACCORDANCE WITH THE EXEMPTION
FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY
APPLICABLE STATE SECURITIES LAWS; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT AND
ANY APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF CLAUSE (C) OR (D), THE SELLER FURNISHES TO THE COMPANY AN OPINION OF
COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY TO SUCH EFFECT. THE PRESENCE OF THIS LEGEND MAY
IMPAIR THE ABILITY OF THE HOLDER HEREOF TO EFFECT “GOOD DELIVERY” OF THE SECURITIES REPRESENTED HEREBY ON A CANADIAN
STOCK EXCHANGE.”

 

		(i)	it understands and acknowledges that (A) if the Company is deemed to have been at any time previously
an issuer with no or nominal operations and no or nominal assets other than cash and cash equivalents, Rule 144 under the U.S.
Securities Act may not be available for resales of the Common Shares and (B) the Company is not obligated to make Rule 144 under
the U.S. Securities Act available for resales of the Common Shares;

 

    	 	- 8 -	 

     

    

 

		(j)	it understands and agrees that there may be material tax consequences to the Subscriber of an acquisition,
disposition or exercise of any of the Common Shares. The Company gives no opinion and makes no representation with respect to the
tax consequences to the Subscriber under United States, state, local or foreign tax law of the undersigned’s acquisition
or disposition of such securities. In particular, no determination has been made whether the Company will be a “passive foreign
investment company” within the meaning of Section 1297 of the United States Internal Revenue Code of 1986, as amended;

  

		(k)	it understands and agrees that the financial statements of the Company have been prepared in accordance
with Canadian generally accepted accounting principles or International Financial Reporting Standards and therefore may be materially
different from financial statements prepared under U.S. generally accepted accounting principles and therefore may not be comparable
to financial statements of United States companies;

 

		(l)	it consents to the Company making a notation on its records or giving instruction to the registrar
and transfer agent of the Company in order to implement the restrictions on transfer set forth and described herein;

 

		(m)	it understands and acknowledges that the Company is incorporated outside the United States, consequently,
it may be difficult to provide service of process on the Company and it may be difficult to enforce any judgment against the Company;

 

		(n)	the Company does not have any obligation to register the Common Shares under the U.S. Securities
Act or any applicable state securities laws or to take action so as to permit resales of the Common Shares. Accordingly, the Subscriber
understands that absent registration, the Subscriber may be required to hold the Common Shares indefinitely. As a consequence,
the Subscriber understands that it must bear the economic risks of the investment in the Common Shares for an indefinite period
of time; and

 

		(o)	it, and if applicable, each Beneficial Purchaser for whose account it is acquiring the Common Shares,
is an “accredited investor” as defined in Rule 501(a) of Regulation D by virtue of satisfying one or more of the
categories indicated below (please hand-write your initial on the appropriate lines and write “SUB” for the criteria
the Subscriber meets and “BEN” for the criteria any persons for whose account or benefit the Subscriber is acquiring
the Common Shares meets):

 

	                      	Category 1.	A bank, as defined in Section 3(a)(2) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or
	                      	Category 2.	A savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or
	                      	Category 3.	A broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934; or
	                      	Category 4.	An insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; or
	                      	Category 5.	An investment company registered under the Investment Company Act of 1940; or
	                      	Category 6.	A business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940; or
	                      	Category 7.	A small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; or

 

    	 	- 9 -	 

     

    

 

	                      	Category 8.	A plan established and maintained by a state, its political subdivision or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with assets in excess of U.S. $5,000,000; or
	                      	Category 9.	An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company or registered investment advisor, or an employee benefit plan with total assets in excess of U.S. $5,000,000 or, if a self-directed plan, the investment decisions are made solely by persons who are accredited investors; or
	                      	Category 10.	A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; or
	                      	Category 11.	An organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or a partnership, not formed for the specific purpose of acquiring the Common Shares, with total assets in excess of U.S. $5,000,000; or
	                      	Category 12.	A director, executive officer or general partner of the Company; or
	                      	Category 13.	A natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds U.S. $1,000,000 (for the purposes of calculating net worth, (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of the securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the sale of the securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability); or
	                      	Category 14.	A natural person who had an individual income in excess of U.S. $200,000 in each year of the two most recent years or joint income with that person’s spouse in excess of U.S. $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
	                      	Category 15.	A trust, with total assets in excess of U.S. $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under Regulation D; or

 

    	 	- 10 -	 

     

    

 

	                      	Category 16.	An entity in which each of the equity owners meets the requirements of one of the above categories – if this alternative is selected, identify each equity owner and provide statements from each demonstrating how they qualified as an accredited investor.

 

Dated _______________

 

	 	X	     
	 	Signature of individual (if Subscriber is an individual)
	 	 
	 	X	     
	 	Authorized signatory (if Subscriber is not an individual)
	 	 
	 	
	 	Name of Subscriber (please print)
	 	 
	 	
	 	Name of authorized signatory (please print)
	 	 
	 	
	 	Official capacity of authorized signatory (please print)

    

    	 	- 11 -	 

     

    

     

Appendix
“A”

 

Form
of Declaration for Removal of Legend –

Rule 904 Under the U.S. Securities Act of 1933

 

		To:	Petroteq Energy Inc. (the “Company”)

 

		To:	Computershare Investor Services Inc., as registrar and
transfer agent for the common shares of the Company.

 

The undersigned (A) acknowledges that the
sale of _________________ common shares of the Company to which this declaration relates, represented by certificate number _______________,
is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the “U.S.
Securities Act”), and (B) certifies that (1) the undersigned (a) is not an “affiliate” of the Company, as
that term is defined in Rule 405 under the U.S. Securities Act, or is an affiliate solely by virtue of being an officer or director
of the Company, (b) is not a “distributor” as defined in Regulation S, and (c) is not an affiliate of a distributor;
(2) the offer of such securities was not made to a person in the United States and either (a) at the time the buy order was originated,
the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was
outside the United States, or (b) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the
TSX Venture Exchange or any other “designated offshore securities market”, and neither the seller nor any person acting
on its behalf knows that the transaction has been prearranged with a buyer in the United States; (3) neither the seller nor any
affiliate of the seller nor any person acting on their behalf has engaged or will engage in any directed selling efforts in the
United States in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of “washing
off” the resale restrictions imposed because the securities are “restricted securities” (as that term is defined
in Rule 144(a)(3) under the U. S. Securities Act); (5) the seller does not intend to replace such securities with fungible unrestricted
securities; and (6) the contemplated sale is not a transaction, or part of a series of transactions, which, although in technical
compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U. S. Securities Act. Terms
used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

 

Dated __________________.

 

	 	X	     
	 	Signature of individual (if Seller is an individual)
	 	 
	 	X	     
	 	Authorized signatory (if Seller is not an individual)
	 	 
	 	
	 	Name of Seller (please print)
	 	 
	 	
	 	Name of authorized signatory (please print)
	 	 
	 	
	 	Official capacity of authorized signatory (please print)

    

    	 	- 12 -	 

     

    

 

Affirmation by Seller’s Broker-Dealer

(Required for sales pursuant to Section (B)(2)(b) in Appendix “A” above)

 

We have read the representation letter
of ____________ (the “Seller”) dated _______________, pursuant to which the Seller has requested that we sell,
for the Seller’s account, ____________________ common shares of the Company represented by certificate number _________________
(the “Common Shares”). We have executed sales of the Common Shares pursuant to Rule 904 of Regulation S under
the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), on behalf of the Seller. In
that connection, we hereby represent to you as follows:

 

		(1)	no offer to sell the Common Shares was made to a person in the United States;

 

		(2)	the sale of the Common Shares was executed in, on or through the facilities of the Toronto Stock
Exchange, the TSX Venture Exchange or another “designated offshore securities market” (as defined in Regulation S under
the U.S. Securities Act), and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United States;

 

		(3)	no “directed selling efforts” were made in the United States by the undersigned, any
affiliate of the undersigned, or any person acting on behalf of the undersigned; and

 

		(4)	we have done no more than execute the order or orders to sell the Common Shares as agent for the
Seller and will receive no more than the usual and customary broker’s commission that would be received by a person executing
such transaction as agent.

 

For purposes of these representations:
“affiliate” means a person that directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, the undersigned; “directed selling efforts” means any activity
undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United
States for the Common Shares (including, but not be limited to, the solicitation of offers to purchase the Common Shares from persons
in the United States); and “United States” means the United States of America, its territories or possessions,
any State of the United States, and the District of Columbia.

 

Legal counsel to the Company shall be entitled
to rely upon the representations, warranties and covenants contained in this letter to the same extent as if this letter had been
addressed to them.

 

Dated ___________________.

 

	 	    	 
	Name of Firm	 
	 	 	 
	By:	           	 
	 	 	 
	Title:	    	 

 

    	 	- 13 -

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