Document:

Exhibit10.1

Exhibit 10.1

        

August 29, 2013

To:  Randy Young:
We are genuinely excited about the prospect of your joining The Fresh Market, Inc. (the "Company"). You made a tremendous impression on our management team and we believe you will add great value to our growing company.
Below is our understanding: 
		
	•
	We are offering the position of Senior Vice President - Real Estate and Development.  You may also be elected an Assistant Secretary.

		
	•
	We are offering an annual base salary of $275,000, paid bi-weekly. Our Compensation Committee expects to review executive salaries early in fiscal 2014.

		
	•
	As an executive officer, you will participate in the 2013 Annual Incentive Compensation Program for Select Executives (the "Program"), the form of which we have provided to you.  Your target bonus under the Program will be fifty percent (50%) of your annual base salary, pro rated for the time period from your date of employment until the end of the Company's current fiscal year.  The Company's financial metrics for determining the actual amount of your bonus (operating income, on an adjusted basis, and total sales, with an ROIC “gate”), which have been shared with you, will be the same for you as for other executives under the Program.  The bonus is entirely formulaic and there is no positive discretionary element, though, as with many similar bonus programs, the Compensation Committee may utilize negative discretion.  

		
	•
	We will award you a signing bonus of $150,000 in restricted stock.  Your grant will be effective, and the grant date will be, your date of hire unless the Company’s trading window under the Company’s insider trading policy is not then open, in which case your grant will be effective, and your grant date will be, the first business day that the trading window is open following your date of hire (such date that the grant is effective, the “Grant Date”).  The number of restricted shares that you receive will be based upon the closing price of the Company's common stock on The Nasdaq Stock Market on the Grant Date.  The restricted shares will be awarded on the Company's form RSA Award 

1

Exhibit 10.1

agreement and will vest one hundred percent (100%) on the third anniversary of the Grant Date, subject to your then employment.  We have provided you with a copy of the form of equity award agreement for the award described above.  In addition, you will also receive a cash signing bonus of $75,000 to be paid within 30 days of your start date.  If you leave voluntarily or are terminated for cause within one year of your start date, you must repay the entire amount of the cash signing bonus.  If you leave voluntarily or are terminated for cause between your first and second year of employment, you must repay the applicable pro rata portion remaining, i.e., $75,000 x (730 days - days worked)/730 days.  
		
	•
	We will award you a total of $300,000 of Grant Date value (GDV) of equity, pro rated for the time period from your date of employment until the end of the Company's current fiscal year, in the form of options (forty percent (40%) of the pro rated portion of the total GDV), restricted shares (thirty percent (30%) of the pro rated portion of the total GDV) and performance share units (thirty percent (30%) of the pro rated portion of the total GDV).  The number of options that you will receive will be determined by dividing 40% of the pro rated portion of the total GDV by the Black-Scholes value determined as of the Grant Date and the number of restricted shares and performance share units that you will receive will be determined, in each case, by dividing 30% of the pro rated portion of the total GDV by the closing price of the Company's common stock on The Nasdaq Stock Market on the Grant Date.  The exercise price for your options will be the closing price of the Company’s common stock on The Nasdaq Stock Market on the Grant Date.  Your options and the restricted shares referred to in this paragraph will be subject to time-based vesting of twenty-five percent (25%) of the shares vesting on each of the first through fourth anniversary of the Grant Date.  The performance share units will vest, subject to achievement of the financial performance metric, following the end of fiscal 2015.  We have shared the financial performance metric with you (cumulative EPS, on an excluded items basis, for fiscal 2013 - fiscal 2015).  In addition, we have provided you with copies of the form of equity award agreements for the awards described above.  

		
	•
	As an executive officer, you will be subject to our Compensation Recoupment Policy and our Stock Ownership and Retention Guidelines which limit the amount of compensatory equity you may sell until you are in compliance with the Guidelines.  We have provided you with a copy of the Recoupment Policy and the Retention Guidelines.  

		
	•
	As a Senior Vice President, you will be expected to enter into an Employment Agreement, and will thereafter become a participant under the Company's Severance Plan.  You understand that the Employment Agreement includes restrictive covenants.  We have provided you the form of the Employment Agreement and the Severance Plan.  We remain available to answer any questions that you may have, although please note that the Employment Agreement and the Severance Plan, as compared to oral discussions, control the matters covered thereby.

		
	•
	You will be entitled to paid vacation.  The number of days and timing of the vacation should be coordinated with your supervisor.  

		
	•
	The Company will pay or promptly reimburse reasonable and customary relocation costs and reasonable and customary closing costs (including realtor fees of up to 6%) on the sale of your home (one home), moving and transportation of household goods and up to two automobiles from your current home to the Greensboro area, reasonable and 

2

Exhibit 10.1

customary closing costs on the purchase of a home in the Greensboro area, excluding home loan “points”); provided that such sale of your current home has commenced (even if the closing takes longer) within one year of the date you commence employment.  You agree to repay fifty percent (50%) of these relocation expenses in the event you leave voluntarily or are terminated for cause within twelve (12) months following your start date.
		
	•
	You will be eligible for the Company's full-time benefits package (subject to waiting periods applicable to these benefits) available to similarly situated employees, information for which has been provided to you.  If necessary, we agree to reimburse your COBRA or similar premiums incurred for coverage during any waiting or gap period.

		
	•
	The Company will pay and/or reimburse reasonable expenses, including reasonable travel, for continuing professional education necessary to maintain any required current professional certifications.

This offer of employment is contingent upon successful completion of a background check and drug test.  When you report for your first day of work you will need to provide documents that establish your identity and right to work in the United States.  
Your employment and compensation with The Fresh Market, Inc. are "at will" meaning that either the Company or you can terminate your employment at any time and for any or no reason. The terms of this offer letter, therefore, do not and are not intended to create either an express and/or implied contract of employment.  No manager or representative of The Fresh Market, Inc. other than the President has authority to enter into any agreement for employment for any specified period of time or to make any agreement contrary to the foregoing, and any promises to the contrary may only be relied upon by you if they are in writing and signed by the President of The Fresh Market, Inc. 
It is intended that the provisions of this offer letter comply with Section 409A of the Internal Revenue Code and this offer letter will be construed accordingly.  Neither you nor any of your creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A) payable under this offer letter or under any other plan, policy, arrangement or agreement of or with the Company or any of its affiliates (this offer letter and such other plans, policies, arrangements and agreements, the "Company Plans") to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to you or for your benefit under any Company Plan may not be reduced by, or offset against, any amount owing by you to the Company or any of its affiliates. Except as specifically permitted by Section 409A, the benefits and reimbursements provided to you under any Company Plan during any calendar year will not affect the benefits and reimbursements to be provided to you under the relevant section of such Company Plan in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit and will be provided in accordance with Section 409A and its associated regulations.  Further, in the case of reimbursement payments, such payments will be made to you on or before the last day of the calendar year following the calendar year in which 

3

Exhibit 10.1

the underlying fee, cost or expense is incurred.
[Remainder of the page intentionally left blank]

4

If the matters set forth above are acceptable to you and you wish to accept our offer of employment, please sign and date a copy of this letter and return to my attention.

Warmest Regards,

/s/ Craig Carlock
Craig Carlock 
President and Chief Executive Officer

I accept the offer of employment as of this 1st day of September 2013.

/s/ Randall A. Young
Randall A. Young

5Exhibit 10-1

 

ASSIGNMENT

 

In
consideration for the issuance of 1,777,778 fully paid and assessable restricted shares of common stock of Bearing Mineral Exploration,
Inc., a Nevada corporation and other good and valuable consideration, receipt of which is hereby acknowledged, Art Agolli (the
“Assignor”) hereby sell, assign, transfer, and convey to Bearing Mineral Exploration, Inc, a Nevada corporation, (the
“Assignee”) all of Assignor’s right, title, and interest in and to that certain Letter Of Intent between Assignor
and Sonoro Energy Ltd., dated April 12, 2012 which is attached hereto and marked “Exhibit A”.

 

The
Assignor warrants and represents that said Letter of Intent is in full force and effect and is fully assignable.

 

The
Assignee hereby assumes and agrees to perform all obligation of the Assignor under the Letter of Intent and hereby holds Assignor
safe and harmless from any and all claims, suits or demands by any person relating to said Letter of Intent or this Assignment.

 

DATED:
April 17, 2012.

 

	 	 	/s/
    Art Agolli 
	 	 	Art
    Agolli (Assignor)
	 	 	 
	 	 	BEARING
    MINERAL EXPLORATION, INC.
	 	 	(Assignee)
	 	 	 
	 	BY:	Art
    Agolli 
	 	 	Art
    Agolli, President

 

    	 

    	 

    

 

EXHIBIT
A

 

Artan
Agolli

Suite
300, 714 – 1st Street S.E.

Calgary,
Alberta T2G 2G8

 

CONFIDENTIAL

 

April
12, 2012

 

Sonoro
Energy Ltd.

Suite
1000, 600 – 6th Avenue S.W.

Calgary,
Alberta T2P 0S5

Attention:
Mr. Richard Wadsworth

 

Letter
of Intent

 

Dear
Mr. Wadsworth:

 

Re:
Sonoro Energy Ltd.

 

Further
to our various discussions, we understand that Sonoro Energy Ltd. (formerly Sonic Technology Solutions Inc.) (the “Corporation”)
is the holder of all of the legal and equitable rights and entitlements relating to a sonic reactor (“Sonic Reactor”)
and technology and that the Corporation has developed an application utilizing the Sonic Reactor for the treatment and upgrading
of heavy oil by sonicated solvent de-asphalting. We understand that the Sonic Reactors are constructed by a third party supplier
with the designs provided by the Corporation. For the purposes hereof, all of the Corporation’s designs, trade secrets,
know how, process and application for the use of the Sonic Reactor for the treatment and upgrading of heavy oil through sonicated
solvent de-asphalting, and all related intellectual property transfer and confidentiality agreements shall be collectively hereinafter
referred to as the “Technology”.

 

We
also understand that the Corporation has established Petrosonic Albania Sha (“AlbaniaCo”) in Albania
and that the Corporation is the legal and beneficial holder of the 60,000 shares (“AlbaniaCo Shares”)
of Albania Co representing 83.3% of the outstanding shares of AlbaniaCo with a paid-up capital of CDN$1,500,000 and that AlbNafta Shpk is the legal and beneficial holder of the remaining 12,000 shares (the “Minority AlbaniaCo
Shares”) or 16.7% of the outstanding shares of AlbaniaCo with a paid up capital of CDN$300,000. We also
understand that pursuant to the terms of a Licence Agreement (the “Albania Licence”) dated June 30, 2010,
the Corporation has granted certain exclusive rights to AlbaniaCo to commercialize the Technology only in Albania and
that AlbaniaCo is entitled to the use of the Corporation’s Sonic Reactor (the “Albania Sonic
Reactor”) located in Albania.

 

This
Letter of Intent sets forth the basic terms and conditions of the proposed sale by the Corporation to Artan Agolli or his
duly authorized nominee (the “Purchaser”) of: (a) the rights in and to the Technology and the rights to commercialize
the Technology in all global jurisdictions (“Jurisdications”) except The Republic of Iraq; (the “Technology
Rights”); (b) the Albania Sonic Reactor; (c) the Sonic Reactor (the “CDN Sonic Reactor”) located
in Richmond, British Columbia; and (d) the AlbaniaCo Shares held by the Corporation.

 

    	 

    	 

    

 

Contemporaneous
with completion of the remaining transactions contemplated herein, the Purchaser and the Corporation shall enter into a licence
agreement (the “Iraq Licence Agreement”) for commercialization of the Technology in The Republic of Iraq, provided
that under the terms of the Iraq Licence Agreement: (i) the Corporation shall not be obligated to pay the Purchaser any licence
fees or royalty payments; and (ii) the Purchaser shall only be entitled to be reimbursed for its expenses, such as travel costs
and the costs for personnel.

 

The
Purchaser hereby proposes that the purchase and sale by the Corporation to the Purchaser of the Technology Rights, the Purchased
Sonic Reactors and the AlbaniaCo Shares be completed at 4:30 p.m. (Calgary time) on April 30, 2012 (the “Closing
Date”), or any other date and time as may be mutually agreed upon in writing by the parties herein, subject to the herein
specified terms.

 

		1.0	Purchase
                                                                  Price – Technology

 

		1.1	The
                                                           Purchaser shall pay to the Corporation as purchase consideration for
                                                           the Technology and the Purchased Sonic Reactors an aggregate of CDN$250,000,
                                                           subject to the remaining terms herein.

 

		1.2	As
                                                           additional consideration for the sale of the Technology Rights and
                                                           the Purchased Sonic Reactors, the Purchaser shall pay to the Corporation,
                                                           a royalty representing 10% of the Net Revenues realized by the
                                                           Purchaser or any of its affiliates in all Jurisdictions for a period
                                                           of 10 years from the date of commencement of Commercial Operations
                                                           in each Jurisdiction.

 

		1.3	For
                                                                                             the purposes hereof:

 

		(a)	“Net
                                                                                                 Revenues” shall
                                                                                                 mean the net revenues of the
                                                                                                 Purchaser or any of its affiliates
                                                                                                 in all Jurisdictions after deducting
                                                                                                 all industry standard operating
                                                                                                 expenses, including without limitation:
                                                                                                 (i) capital depreciation; (ii)
                                                                                                 taxes, fees and levies imposed
                                                                                                 by any authorized authority;
                                                                                                 and (iii) a reasonable reserve
                                                                                                 for working capital, each as
                                                                                                 reported in the appropriate financial
                                                                                                 statements of the Purchaser or
                                                                                                 its affiliates’ financial
                                                                                                 statements; and

 

		(b)	“Commercial
                                                                                                 Operations” means
                                                                                                 the Purchaser or any of one its
                                                                                                 affiliates in any Jurisdiction
                                                                                                 processes not less than an average
                                                                                                 of 50 barrels of feed stock per
                                                                                                 day over a period of thirty (30)
                                                                                                 consecutive days utilizing the
                                                                                                 Technology. 

 

		2.0	Purchase
                                                                  Price – AlbaniaCo Shares

 

		2.1	The
                                                           Purchaser shall pay to the Corporation as purchase consideration for
                                                           the AlbaniaCo Shares an aggregate of CDN$250,000,
                                                           subject to the remaining terms herein.

 

		3.0	Default
                                                                  Terms 

 

		3.1	Subject
                                                           to the remaining terms herein, all rights in and to the Technology
                                                           shall revert back to the Corporation and the Purchaser shall promptly
                                                           take all reasonable actions and comply with all reasonable requests
                                                           of the Corporation to ensure such reversion, in the event that the
                                                           Purchaser or any one of its affiliates has not commenced Commercial
                                                           Operations in any one (1) Jurisdiction within two (2) years of the
                                                           Closing Date.

 

    	 

    	 

    

 

		3.2	The
                                                           default terms specified at Article 3.1 herein shall be extend in the
                                                           event that the Purchaser or any of its affiliates is not able to carry
                                                           out its business activities due to any labour strikes, political upheaval,
                                                           an act of god or any other similar event of frustration that materially
                                                           interrupts the Purchaser’s attempts to commence Commercial Operations
                                                           in any of the Jurisdictions where the Purchaser or any of its affiliates
                                                           is actively pursing Commercial Operations.

 

		4.0	Payment
                                                                  Terms

 

		4.1	The
                                                           aggregate purchase consideration of CDN$500,000 for the
                                                           Technology, the Purchased Sonic Reactors and the AlbaniaCo Shares shall
                                                           be payable by the Purchaser to the Corporation as follows:

 

		(a)	CDN$250,000
                                                                                                   shall be payable in cash
                                                                                                   on the Closing Date; and

 

		(b)	CDN$250,000
                                                                 shall be payable by way of a convertible debenture (“Convertible
                                                                 Debenture”) of a public or private company (the “Issuer”)
                                                                 acceptable to the Corporation acting reasonably; or.

 

		(c)	In
                                                                 the event that the Purchaser secures aggregate gross proceeds
                                                                 of CDN$1,750,000 or more in financing over the 24 months
                                                                 after the Closing then the CDN$250,000 payment specified in Article
                                                                 4.1(b) herein may be paid by the Purchaser in the form of cash
                                                                 at the descrition of the Corporation.

 

	4.2	The Convertible Debenture shall have the following fundamental terms:

 

		(a)	no
                                                                  interest shall be payable by the Issuer;

 

		(b)	the
                                                                                                     maturity date (the “Maturity
                                                                                                     Date”) shall be
                                                                                                     twenty-four
                                                                                                     (24) months after the Closing
                                                                                                     Date, provided that the Purchaser
                                                                                                     or the Issuer as appropriate,
                                                                                                     shall be entitled to satisfy
                                                                                                     the indebtedness at any time
                                                                                                     prior to the Maturity Date,
                                                                                                     without any prepayment penalty;

 

		(c)	the
                                                                                                 indebtedness shall be subordinated
                                                                                                 to any future senior debt or
                                                                                                 convertible debt financing of
                                                                                                 the Issuer;

 

		(d)	the
                                                                                                 Corporation shall have the right
                                                                                                 to convert the indebtedness into
                                                                                                 common shares of the Issuer at
                                                                                                 a conversion price equal to the
                                                                                                 issuance price of common shares
                                                                                                 under the Financing and

 

		(e)	the
                                                                                                 Corporation shall have the rights
                                                                                                 to register the indebtedness
                                                                                                 as a security interest against
                                                                                                 all present and after acquired
                                                                                                 personal property of the Issuer
                                                                                                 or any of its affiliates in any
                                                                                                 Jurisdictions, as the Corporation
                                                                                                 may determine from time to time.

 

	5.0	Purchase and Sale Agreements

 

		5.1	Upon
                                                           receipt by the Purchaser of a copy of this Letter of Intent, duly executed
                                                           by the Corporation, the parties shall use good faith efforts to, by
                                                           no later than April 23, 2012 or any other date mutually agreed
                                                           upon in writing by the parties prepare an industry standard form of
                                                           technology transfer agreement and a form of share purchase and sale
                                                           agreement (the “Agreements”) incorporating the terms
                                                           of this Letter of Intent and such other terms and conditions as deemed
                                                           necessary and advisable by counsel for each of the Purchaser and the
                                                           Corporation. The Agreements shall include terms providing for representations
                                                           and warranties of the Corporation relating to the business and affairs
                                                           of the Technology and the AlbaniaCo Shares, and that as of the Closing
                                                           Date and to the knowledge of the Corporation acting diligently, there
                                                           shall be no rights, claims, penalties, dues, liabilities, liens or
                                                           security interests of any person, party, taxing authority or agency,
                                                           or any regulatory body or authority whatsoever against the Technology,
                                                           or the Purchased Sonic Reactors whether registered or not (the “Claims”),
                                                           as well as indemnities (“Indemnities”) of the Corporation
                                                           relating to the rights of the Technology or any Claims not disclosed
                                                           to the Purchaser prior to the Closing Date but which materialize after
                                                           the Closing Date.

 

    	 

    	 

    

 

		6.0	Conditions
                                                                  Precedent of Purchaser

 

		6.1	The
                                                           obligations of the Purchaser to complete the transactions contemplated
                                                           herein and under the terms of the Agreements are subject to the satisfaction
                                                           or fulfillment as at the Closing Date or any other date specified therein,
                                                           of the following conditions precedent which may in whole or in part,
                                                           be unilaterally waived by the Purchaser at any time, as follows:

 

		(a)	Up
                                                                                                 to April 23, 2012 expiring
                                                                                                 at 4:30 p.m. (Calgary time) or
                                                                                                 any other date and time mutually
                                                                                                 agreed upon in writing by the
                                                                                                 parties, the review to the sole
                                                                                                 satisfaction of the Purchaser,
                                                                                                 of the financial condition, business
                                                                                                 affairs, properties and title
                                                                                                 of the Technology, the Purchased
                                                                                                 Sonic Reactors,AlbaniaCo and
                                                                                                 the AlbaniaCo Shares, as appropriate;

 

		(b)	By
                                                                                                 no later than the Closing Date,
                                                                                                 the Purchaser shall have secured
                                                                                                 equity financing (the “Financing”)
                                                                                                 for gross aggregate proceeds
                                                                                                 of $500,000 under terms
                                                                                                 acceptable to the Purchaser;

 

		(c)	The
                                                                                                 Corporation shall terminate the
                                                                                                 Albania Licence, without consequence,
                                                                                                 claims or further obligation
                                                                                                 to the Corporation or AlbaniaCo
                                                                                                 thereunder;

 

		(d)	By
                                                                                                 April 23, 2012 expiring at 4:30
                                                                                                 p.m. (Calgary time), the Purchaser
                                                                                                 shall review and confirm that
                                                                                                 the Purchased Sonic Reactors
                                                                                                 and related material assets held
                                                                                                 by AlbaniaCo in Albania are all
                                                                                                 in good working condition;

 

		(e)	The
                                                                                                 Corporation shall enter into
                                                                                                 a form of technical services
                                                                                                 consulting agreement for a period
                                                                                                 of up to 12 months following
                                                                                                 the Closing Date pursuant to
                                                                                                 which the Corporation will facilitate
                                                                                                 the transfer of the Technology
                                                                                                 and will provide ongoing support
                                                                                                 to the Purchaser at cost to the
                                                                                                 Purchaser for the provision of
                                                                                                 the Corporation’s personnel;
                                                                                                 and

 

		(f)	There
                                                                                                 shall be no Claims against the
                                                                                                 Corporation in relation to the
                                                                                                 Technology, the Purchased Sonic
                                                                                                 Reactors, the AlbaniaCo Shares,
                                                                                                 or the operations previously
                                                                                                 undertaken by AlbaniaCo in Albania.

 

		6.2	In
                                                           the event that the Corporation has been advised by the Purchaser by
                                                           no later than the expiry dates specified above, that one or more of
                                                           the above conditions have not been satisfied, this Letter of Intent
                                                           shall be terminated effective as at such date and time. In the event
                                                           of termination of thisLetter of Intent in accordance with Article.1
                                                           herein, the parties shall have no further obligations hereunder, save
                                                           an except for the obligations of the Purchaser at Article 10.4 herein,
                                                           which shall survive the termination of thisLetter of Intent. In the
                                                           event of termination of this Letter of Intent in accordance with this
                                                           Article 6.2, the parties agree to and shall continue to be bound by
                                                           the terms of the Confidentiality Agreement between the corporation
                                                           and the Purchaser dated December 6, 2011.

 

    	 

    	 

    

 

		7.0	Mutual
                                                           Condition Precedent

 

		7.1	The
                                                           obligations of the parties to complete the transactions contemplated
                                                           herein and under the terms of the Agreements, is subject to the mutual
                                                           condition that as at the Closing Date:

 

		(a)	The parties shall have obtained
all applicable Canadian and Albanian federal, provincial, civic and regulatory licenses, consents and government approvals for
the purchase and sale of the Technology Rights, the Purchased Sonic Reactors and the AlbaniaCo Shares;

 

		(b)	The parties shall have finalized
the terms and shall have entered into the Iraq License Agreement; and

 

		(c)	The parties shall have finalized
the terms and shall have entered into the Agreements.

 

		7.2	In
                                                                                             the event that the mutual conditions
                                                                                             precedent specified at Article 7.1
                                                                                             herein have not been satisfied or
                                                                                             waived by the parties by the Closing
                                                                                             Date, this Letter of Intent may be
                                                                                             terminated by either party on notice
                                                                                             to the other and in which case, the
                                                                                             parties shall have no further obligations
                                                                                             hereunder, save an except for the
                                                                                             obligations of the Purchaser at Article
                                                                                             10.4 herein, which shall survive
                                                                                             the termination of this Letter of
                                                                                             Intent. In the event of termination
                                                                                             of this Letter of Intent in accordance
                                                                                             with this Article 7.2, the parties
                                                                                             shall continue to be bound by the
                                                                                             terms of the Non-Disclosure Agreement
                                                                                             between the Corporation and Pruchaser
                                                                                             dated
                                                                                             December 6, 2011.

 

		8.0	Exclusivity

 

		8.1	Upon
                                                                                             execution by the parties of this
                                                                                             Letter of Intent and until the Closing
                                                                                             Date, or until this Letter of Intent
                                                                                             is terminated pursuant to the terms
                                                                                             herein, the Corporation shall not
                                                                                             initiate or solicit any expressions
                                                                                             of interest or proposals from any
                                                                                             other person or party relating to
                                                                                             a possible sale, assignment or licence
                                                                                             of the Technology, or the Purchased
                                                                                             Sonic Reactors, or a sale of the
                                                                                             AlbaniaCo Shares, or a merger, amalgamation,
                                                                                             arrangement or similar transaction
                                                                                             between AlbaniaCo and any other person
                                                                                             or party.

 

		9.0	Conduct
                                                                                             of Business

 

		9.1	Upon
                                                                                             execution of this Letter of Intent
                                                                                             by the parties and until the Closing
                                                                                             Date, or until this Letter of Intent
                                                                                             is terminated pursuant to the terms
                                                                                             herein, the Corporation shall not
                                                                                             without the prior written consent
                                                                                             of the Purchaser:

 

		(a)	Authorize
                                                                                                 AlbaniaCo to issue any additional
                                                                                                 securities of any class in the
                                                                                                 authorized capital of AlbaniaCo;

 

		(b)	Authorize
                                                                                                 AlbaniaCo to grant an option
                                                                                                 or right to any person or party
                                                                                                 to purchase any un-issued securities
                                                                                                 of any class in the authorized
                                                                                                 capital of AlbaniaCo;

 

		(c)	Authorize
                                                                                                 AlbaniaCo to enter into any material
                                                                                                 contracts with any person or
                                                                                                 party other than in the ordinary
                                                                                                 course of business;

 

    	 

    	 

    

 

		(d)	Pledge,
                                                                                                 lease, dispose, encumber or grant
                                                                                                 to any person or party, any interest
                                                                                                 in any of the assets, of AlbaniaCo
                                                                                                 other than in the ordinary course
                                                                                                 of business;

 

		(e)	Operate
                                                                                                 AlbaniaCo in any manner other
                                                                                                 than a manner that is consistent
                                                                                                 with good international practices;

 

		(f)	Authorize
                                                                                                 or be party to any transaction
                                                                                                 to pledge, dispose, encumber
                                                                                                 or grant to any person or party,
                                                                                                 any interest in and to the AlbaniaCo
                                                                                                 Shares, or any part thereof;
                                                                                                 and

 

		(g)	Pledge,
                                                                                                 lease, dispose, encumber or grant
                                                                                                 to any person or party, any interest
                                                                                                 or licence in the Technology.

 

		10.0	Due
                                                                                              Diligence and Confidentiality

 

		10.1	Upon
                                                                                              execution by the parties of this
                                                                                              Letter of Intent and until the Closing
                                                                                              Date, the Corporation shall allow
                                                                                              the Purchaser and its authorized
                                                                                              officers, professional advisors,
                                                                                              financiers, investors and other
                                                                                              agents required to complete the
                                                                                              transactions contemplated herein
                                                                                              (collectively the “Agents”)
                                                                                              with reasonable access to the Confidential
                                                                                              Information (as defined below) of
                                                                                              the Corporation relating to the
                                                                                              Technology and AlbaniaCo which shall
                                                                                              enable the Purchaser to confirm
                                                                                              the financial condition, contractual
                                                                                              obligations, and the business and
                                                                                              corporate affairs of the Corporation
                                                                                              relating to the Technology, AlbaniaCo
                                                                                              and the AlbaniaCo Shares, as deemed
                                                                                              necessary or advisable by the Purchaser,
                                                                                              acting reasonably, in order to confirm
                                                                                              and verify the Corporation’s
                                                                                              representations, warranties, covenants
                                                                                              and agreements contained herein
                                                                                              and under the terms of the Agreements,
                                                                                              provided that:

 

		(a)	The
                                                                                                                      Confidential
                                                                                                                      Information
                                                                                                                      shall be
                                                                                                                      treated
                                                                                                                      as strictly
                                                                                                                      confidential
                                                                                                                      and shall
                                                                                                                      not be used
                                                                                                                      by the Purchaser
                                                                                                                      for any
                                                                                                                      purpose
                                                                                                                      other than
                                                                                                                      completing
                                                                                                                      the transactions
                                                                                                                      contemplated
                                                                                                                      herein;
                                                                                                                      and

 

		(b)	The
                                                                                                                      Corporation
                                                                                                                      shall not
                                                                                                                      be obligated
                                                                                                                      to provide
                                                                                                                      any original
                                                                                                                      copies of
                                                                                                                      the Confidential
                                                                                                                      Information
                                                                                                                      to the Purchaser
                                                                                                                      and the
                                                                                                                      Purchaser
                                                                                                                      shall take
                                                                                                                      all further
                                                                                                                      responsible
                                                                                                                      steps until
                                                                                                                      the Closing
                                                                                                                      Date to
                                                                                                                      ensure that
                                                                                                                      the Confidential
                                                                                                                      Information
                                                                                                                      is only
                                                                                                                      distributed
                                                                                                                      to the Agents.

 

		10.2	For
                                                            the purposes hereof, Confidential Information means all information
                                                            related to the Corporation and/or its affiliates (including it business,
                                                            operations, assets, liabilities, plans, prospects and affairs), which
                                                            is disclosed or otherwise obtained by, the Purchaser, regardless of
                                                            whether such information is in oral, visual, electronic, written or
                                                            other form and whether or not it is identified as “confidential”.
                                                            Confidential Information does not include any information that:

 

		(a)	Is or has become publicly available
through no fault of the Purchaser;

 

		(b)	Is or becomes available to
the Purchaser on a non-confidential basis from a source other than the Corporation or its affiliates; or

 

		(c)	Was independently acquired
or developed by the Purchaser without violating the Purchaser’s obligations under this Letter of Intent or any other obligation
of confidentiality they may have to the Corporation or its affiliates.

 

    	 

    	 

    

 

		10.3	Upon
                                                            acceptance by the Corporation of this Letter of Intent, the Purchaser
                                                            may conduct physical inspections of the Technology and the assets
                                                            of AlbaniaCo in the manner necessary for the Purchaser’s purposes
                                                            provided that any Agents have been approved by the Corporation, acting
                                                            reasonably, prior to their arrival.

 

		10.4	In
                                                            the event that the Letter of Intent or the Agreements are terminated
                                                            for any reason whatsoever, the Purchaser shall, within five (5) business
                                                            days, return to the Corporation all Confidential Information, whether
                                                            in the possession of the Purchaser or the Agents, with a sworn statutory
                                                            declaration in a form satisfactory to the Corporation’s solicitor,
                                                            acting reasonably, stating that all Confidential Information has been
                                                            returned to the Corporation without any copies being retained by the
                                                            Purchaser and to the best of the Purchaser’s knowledge, without
                                                            any copies being retained by any of the Agents.

 

		11.0	Costs
                                                                                              and Expenses

 

		11.1	Each
                                                                                              of the Corporation and the Purchaser
                                                                                              shall be solely responsible for
                                                                                              all of their respective legal, professional
                                                                                              and any other costs and expenses
                                                                                              related to the transactions contemplated
                                                                                              under the terms of this Letter of
                                                                                              Intent.

 

		12.0	Enforceability

 

		12.1	The
                                                                                              governing law applicable to this
                                                                                              Letter of Intent is the law of Alberta,
                                                                                              and the federal laws of Canada applicable
                                                                                              thereto. Notwithstanding that this
                                                                                              document constitutes a letter of
                                                                                              intent that contemplates the completion
                                                                                              of the binding, definitive Agreements,
                                                                                              the following terms represent binding,
                                                                                              enforceable agreements between the
                                                                                              parties hereto: Articles 6.1, 6.2
                                                                                              7.1(b), 7.1(c), 7.1(d), 8.1, 9.1,
                                                                                              10.1, 10.2, 10.3, 11.1, and 12.1.

 

		13.0	Final
                                                                                              Agreement

 

		13.1	This
                                                            Letter of Intent replaces and supercedes the Letter of Intent entered
                                                            into by the Corporation on December 6, 2011 with respect to the subject
                                                            matter hereof, and each of the parties hereby confirm that they have
                                                            no claims against the remaining party thereundermay

 

		14.0	Execution
                                                                                              in Counterparts

 

		14.1	This
                                                                                              Letter of Intent may be signed in
                                                                                              as many counterparts as may be necessary,
                                                                                              each of which so signed will be
                                                                                              deemed to be as original, and such
                                                                                              counterparts together will constitute
                                                                                              one and the same instrument and
                                                                                              notwithstanding the date of execution,
                                                                                              will be deemed to bear the date
                                                                                              set forth above.

 

If
the foregoing terms relating to the purchase and sale of the Technology Rights, the Purchased Sonic Reactors and the AlbaniaCo
Shares are acceptable to the Corporation, then please indicate such acceptance thereof and return to the Purchaser one (1) fully
executed copy of this Letter of Intent.

 

    	 

    	 

    

 

	Yours truly,	 
	 	 
	/s/ Art Agolli	 
	ARTAN
    AGOLLI	 

 

THE
FOREGOING TERMS OF THIS LETTER OF INTENT ARE HEREBY ACKNOWLEDGED AND ACCEPTED BY THE CORPORATION AS OF THIS 12th DAY OF
APRIL, 2012.

 

SONORO
ENERGY LTD.

 

	Per:	/s/ Richard Wadsworth	 
	 	 Richard
    Wadsworth, President & CEO

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