Document:

Exhibit
10.34

 

AMENDED
AND RESTATED DEBT CONVERSION AGREEMENT

(United
States Creditor)

 

Made
as of the 15th day of August, 2020.

 

BETWEEN:

 

PETROTEQ
ENERGY INC.

(the
“Company”)

 

-
and -

 

VALKOR
LLC

(the
“Creditor”)

 

WHEREAS
this Agreement amends and restates the Debt Conversion Agreement dated July 20, 2020 between Company and the Creditor.

 

AND
WHEREAS the Company is indebted to the Creditor in the amount of US$2,500,000 for services rendered pursuant to an invoice dated
July 13, 2020 (the “Debt”), attached hereto as Schedule “A”;

 

AND
WHEREAS the Creditor has agreed to accept 56,666,666 common shares of the Company (the “Debt Shares”) at a
deemed price per share of $0.04 for 45,000,0000 of the Debt Shares and US$0.06 for 11,666,666 of the Debt Shares, in full and
final satisfaction and repayment of the Debt (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 Creditor agrees to accept, in full
                                         and final satisfaction of the Debt, the Debt Shares. The Creditor further agrees that,
                                         upon the issuance and delivery of the Debt Shares to the Creditor, or as the Creditor
                                         may direct, the Creditor 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 Creditor as follows,
                                         and acknowledges that the Creditor 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.

 

    - 1 -

     

    

 

		(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.

 

		(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.

 

		(e)	The
                                         Company has exercised reasonable care, in accordance with U.S. Securities and Exchange
                                         Commission rules and guidance, to determine whether any Covered Person (as defined below)
                                         is subject to any of the “bad actor” disqualifications described in Rule
                                         506(d)(1)(i) to (viii) under the U.S.
Securities Act (“Disqualification Events”). To the Company’s knowledge, no Covered Person is subject
to a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the U.S. Securities
Act. The Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under the U.S. Securities
Act. “Covered Persons” means those persons specified in Rule 506(d)(1) under the U.S. Securities Act, including
the Company; any predecessor or affiliate of the Company; any director or executive officer of the Company; any beneficial owner
of twenty percent (20%) or more of the Company’s outstanding voting equity securities, calculated on the basis of voting
power; any promoter (as defined in Rule 405 under the U.S. Securities Act) connected with the Company in any capacity at the time
of the sale of the Debt Shares; and any person that has been or will be paid (directly or indirectly) remuneration for solicitation
in connection with the sale of the Debt Shares (a “Solicitor”), any general partner or managing member of any
Solicitor, and any director, executive officer or other officer participating in the offering of any Solicitor or general partner
or managing member of any Solicitor.

 

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

 

		(a)	The
                                         Creditor is domiciled in Thompson, Pennsylvania. Such address was not created and is
                                         not used solely for the purpose of acquiring the Debt Shares and the Creditor was solicited
                                         to purchase the Debt Shares in such jurisdiction.

 

		(b)	The
                                         Creditor is an “accredited investor” as such term is defined in Rule 501(a)
                                         of Regulation D under the U.S. Securities Act, and has properly completed, executed and
                                         delivered to the Company Schedule “B”, attached hereto, and the information
                                         contained therein is true and correct.

 

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

 

		(d)	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 Creditor 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 Creditor, of
                                         applicable securities laws or any other laws applicable to the Creditor,
any agreement to which the Creditor is a party, or any judgment, decree, order, statute, rule or regulation applicable to the
Creditor.

 

    - 2 -

     

    

 

		(e)	The
                                         Creditor is acquiring the Debt Shares as principal for the Creditor’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.

 

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

 

		(g)	If
                                         the Creditor 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.

 

		(h)	If
                                         required by applicable securities laws or the Company, the Creditor 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.

 

		(i)	The
                                         Creditor 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 Creditor 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 Creditor to resell such
                                         securities, that the Creditor is solely responsible to find out what these restrictions
                                         are and the Creditor is solely responsible (and the Company is in no way responsible)
                                         for compliance with applicable resale restrictions and the Creditor is aware that it
                                         may not be able to resell such securities except in accordance with limited exemptions
                                         under applicable securities laws.

 

		(j)	The
                                         Creditor 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 Creditor and the Creditor’s
                                         decision to acquire the Debt Shares was not based upon, and the Creditor has not relied
                                         upon, any verbal or written representations as to facts made by or on behalf of the Company.

 

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

 

		(l)	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.

 

		(m)	Neither
                                         (i) the Creditor, (ii) any of its directors, executive officers, other officers that
                                         may serve as a director or officer of any company in which it invests, general partners
                                         or managing members, nor (iii)
any beneficial owner of the Company’s voting equity securities (in accordance with Rule 506(d) of the U.S. Securities Act)
held by the Creditor is subject to any Disqualification Event, except for Disqualification Events covered by Rule 506(d)(2)(ii)
or (iii) or (d)(3) under the U.S. Securities Act and disclosed reasonably in advance of the Closing in writing in reasonable detail
to the Company.

 

    - 3 -

     

    

 

		(n)	It
                                         has not purchased the Debt Shares as a result of any form of general solicitation or
                                         general advertising (as such terms are understood pursuant to the provisions of Rule
                                         502 of Regulation D), 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.

 

		(o)	The
                                         Debt Shares will be issued to the Creditor as “restricted securities”
                                         (as 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 the Creditor
                                         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
                                         laws, or (iv) in a transaction that does not require registration under the U.S. Securities
                                         Act or any applicable state securities 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.

 

		5.	The
                                         Creditor 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 have not been and will not be registered under the U.S. Securities Act or
                                         the securities laws of any State.

 

		(c)	The
                                         offer and sale of the Debt Shares contemplated hereby is being made in reliance on an
                                         exemption from such registration requirements contained in the provisions of Rule 506(b)
                                         of Regulation D or in the provisions of Section 4(a)(2) of the U.S. Securities Act.

 

		(d)	There
                                         may be material tax consequences to the Creditor of an acquisition, disposition or exercise
                                         of any of the Debt Shares. The Company gives no opinion and makes no representation with
                                         respect to the tax consequences to the Creditor 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.

 

		(e)	The
                                         financial statements of the Company prior to and during the nine months ended May 31,
                                         2019 have been prepared in accordance with International Financial Reporting Standards
                                         as issued by the International Accounting Standards Board, and therefore (i) may be materially
                                         different from financial statements prepared under U.S. generally accepted accounting
                                         principles and (ii) may not be comparable to financial statements of United States companies.

 

		(f)	The
                                         Creditor 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.

 

		(g)	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.

 

    - 4 -

     

    

 

		(h)	The
                                         Creditor is not purchasing 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 Creditor covenants that it will not resell the Debt
                                         Shares except in compliance with such laws. The Creditor acknowledges that it is solely
                                         responsible for compliance with any applicable securities laws governing the resale of
                                         the Debt Shares.

 

		(i)	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>.”

 

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>.”

 

		(j)	In
                                         addition to the legends contemplated in subsection 5(j) hereof, the Debt Shares shall
                                         be issued as “restricted securities” as defined in Rule 144(a)(3) under the
                                         U.S. Securities Act, and the certificate representing the Debt 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 the following legend:

 

“THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
SECURITIES ACT”), AND HAVE BEEN OR WILL BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
U.S. SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH
THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE U.S. SECURITIES ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT.”

 

provided,
that if any Debt Shares are being sold otherwise than to the Company, the legend may be removed by delivery to the registrar and
transfer agent and the Company of an opinion of counsel, of recognized standing, in form and substance reasonably satisfactory
to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act or applicable
state securities laws.

 

    - 5 -

     

    

 

		(k)	The
                                         Company previously has been an issuer (a “shell company”) with no
                                         or nominal operations and no or nominal assets other than cash and cash equivalents,
                                         with the result that Rule 144, as interpreted by Staff at the United States Securities
                                         and Exchange Commission (the “SEC”), will not be
available to facilitate resale of any Debt Shares unless and until all of the conditions in Rule 144(i)(2) are satisfied at the
time of the proposed sale, including, without limitation:

 

		(i)	the
                                         requirement that the Company have filed current "Form 10 information" with
                                         the SEC reflecting its status as an entity that is no longer shell company,

 

		(ii)	one
                                         year has elapsed from the date that the Company filed "Form 10 information"
                                         with the SEC, and

 

		(iii)	the
                                         Company shall have filed all reports and material required to be filed under section
                                         13 of the United States Securities Exchange Act of 1934, as amended (the “Exchange
                                         Act”) during the preceding 12 months, other than Form 8-K reports.

 

		(l)	Although
                                         the Company has registered its common shares as a class under section 12(g) of the Exchange
                                         Act by filing a registration statement with the SEC on Form 10 under the Exchange Act
                                         on May 22, 2019 (SEC File No. 000-55991) (which registration statement, as amended, constitutes
                                         "Form 10 information" as such term is used in Rule 144(i)(2) under the U.S.
                                         Securities Act, and was declared effective by order of the SEC on July 12, 2019),

 

		(i)	the
                                         Company is not obligated to make or otherwise keep Rule 144 under the U.S. Securities
                                         Act available for resales of any Debt Shares; and

 

		(ii)	accordingly,
                                         the Company will authorize removal of the U.S. restrictive legend endorsed on the certificate
                                         or other instrument representing the Debt Shares pursuant to Rule 144(b)(1) under the
                                         U.S. Securities Act only in connection with their resale by the Creditor.

 

		(m)	The
                                         Company has determined that it ceased to qualify as a Foreign Private Issuer as of February
                                         28, 2019 (being the last business day of the second fiscal quarter of the fiscal year
                                         ended August 31, 2019), and ceased to be eligible to rely on the rules and forms available
                                         to Foreign Private Issuers on August 31, 2019.

 

		(n)	Rule
                                         905 of Regulation S provides in substance that any “restricted securities”
                                         that are equity securities of a Domestic Issuer (as such term is defined in Rule 902(e)
                                         of Regulation S), including an issuer that no longer qualifies as a Foreign Private Issuer,
                                         will continue to be deemed to be restricted securities notwithstanding that they were
                                         acquired in a resale transaction pursuant to Rule 901 or 904 of Regulation S, and, as
                                         interpreted by Staff at the U.S. Securities and Exchange Commission, Rule 905 applies
                                         to equity securities that, at the time of issuance were those of a Domestic Issuer.

 

		(o)	By
                                         operation of Rule 905 of Regulation S, any Debt Shares that are resold outside the United
                                         States in compliance with the requirements of Rule 901 or Rule 904 of Regulation S will
                                         continue to be “restricted securities” and will continue to be subject to
                                         the requirement that they be represented by a physical certificate imprinted with a U.S.
                                         restrictive legend. The presence of the U.S. restrictive legend on the certificate(s)
                                         representing the Debt Shares may impair the ability of the holder of such securities
                                         to make “good delivery” of the Debt Shares on the TSXV or any other Canadian
                                         stock exchange.

 

		(p)	The
                                         Creditor 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.

 

		(q)	The
                                         Company is relying on the representations, warranties and covenants contained herein
                                         and in Schedule “B”, attached hereto, to determine the Creditor’s eligibility
                                         to acquire the Debt Shares under applicable securities laws and the Creditor 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 Creditor undertakes to
                                         immediately notify the Company of any change in any statement or other information relating
to the Creditor set forth herein and in Schedule “B”, attached hereto, which takes place prior to the time of Closing.

 

    - 6 -

     

    

 

		(r)	The
                                         Creditor 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.

 

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

 

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

 

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

 

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

 

		8.	The
                                         Creditor 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.

 

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

 

		10.	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.

 

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

 

		12.	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.

 

		13.	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.

 

		14.	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.

 

		15.	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.

 

		16.	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]

 

    - 7 -

     

    

 

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:	Director
	 	 
	 	VALKOR LLC
	 	 
	 	By:	/s/ Steven Byle
	 	Name:	Steven Byle
	 	Title:	CEO

 

    - 8 -

     

    

 

SCHEDULE
“A”

 

CREDITOR’S
INVOICE

 

See
attached.

 

     

     

    

 

	Valkor LLC
 21732 Provincial Blvd Ste 160
 Katy, TX 77450
 (832) 226 5022	

 

INVOICE

 

	BILL TO	INVOICE # CM202015
	Petroteq Inc.	DATE 07/13/2020
	15165 Ventura Blvd	DUE DATE 09/11/2020
	Suite 200	TERMS Net 60
	 Sherman, CA.	 
	 91403	 

 

	DESCRIPTION	 	QTY	 	UNIT 

PRICE	 	 	PRICE US 

$	 
	Milestone 2: Completion of Pilot Plant Redesign and Pre-FEED study on 3000 bpd plant (8.33%)	 	1	 	 	2,500,000.00	 	 	 	2,500,000.00	 
	W.O. No. - VESL-001803M-002	 	 	 	 	 	 	 	 	 	 
	Supply and Installation
    of 300 bopd Facility per CEPJ-001818P in Vernal, Utah	 	 	 	 	 	 	 	 	 	 
	This Work Order
    is governed by Master Services Agreement, VESL-001803M dated 01 November 2018, and incorporates by reference the attached
    proposal: CEPJ-001818P, 3000 BBL PER DAY OIL SANDS EXTRACTION UNIT	 	 	 	 	 	 	 	 	 	 

 

	Please make Payment to:	BALANCE DUE	 	$	2,500,000.00	 

 

Chase
Bank

Name: Valkor LLC

Account:
215 365 661

Routing:
111000614

 

     

     

    

 

SCHEDULE
“B”

 

U.S.
ACCREDITED INVESTOR CERTIFICATE

 

Any
person who is a U.S. Person (as such term is defined in Rule 902(k) of Regulation S) (the “Subscriber”) covenants,
represents and warrants to Petroteq Energy Inc. (the “Corporation”) that it is an “accredited investor”
as defined in 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 purchasing the Debt 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
	 	 	 	 
	_________	 	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 limited liability company, a Massachusetts or similar business trust, or a partnership, not formed for the
    specific purpose of acquiring the Debt Shares, with total assets in excess of U.S. $5,000,000; or
	 	 	 	 
	_________	 	Category 12.	A director, executive officer or general partner of the Corporation; 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
	 	 	 	 
	_________	 	Category 16.	An entity in which each of the equity owners meets the requirements of one of the above categories.

 

If
you checked Category 16, please indicate the name and category of accredited investor (by reference to the applicable number in
this Schedule “B”) of each of:

 

	 	Name of Equity Owner	 	Category
    of Accredited Investor
	 	Steven Byle	 	13
    & 14
	 	Coby Crawford	 	13
    & 14
	 	Aldo Benavides	 	13
    & 14

 

Dated
8/15/2020_________

 

	 	X	 
	 	Signature of individual (if
    Subscriber is an individual)
	 	 
	 	X	/s/ Steven Byle
	 	Authorized signatory (if Subscriber
    is not an individual)
	 	 
	 	Valkor LLC
	 	Name of Subscriber
    (please print)
	 	 
	 	Steven Byle
	 	Name of authorized signatory
    (please print)
	 	 
	 	CEO 
	 	Official capacity of authorized
    signatory (please print)Exhibit 10.35

 

TECHNOLOGY LICENSE
AGREEMENT

 

This
TECHNOLOGY LICENSE AGREEMENT (“Agreement”), dated and made effective as of November 14, 2020 (“Effective
Date”), is entered into by and between PETROTEQ ENERGY INC. a corporation organized and existing under the laws of the Province
of Ontario (Canada), having offices at 15315 West Magnolia Boulevard, Suite 120, Sherman Oaks, California 91403 (“Petroteq”
or “Licensor”), and GREENFIELD ENERGY, LLC, a limited liability company organized and existing under the laws
of the State of Utah having offices at 21732 Provincial Boulevard, Suite 160, Katy, Texas 77450 (“Licensee”)
(the parties hereto sometimes referred to individually as a “Party” or collectively as the “Parties”.

 

RECITALS

 

A. Petroteq
is engaged in the commercial development of Oil Sands Plants that use or deploy devices, processes and methods claimed under the
Patent Rights and/or in the Petroteq Know-How in the extraction, processing and production of Crude Oil and other hydrocarbon products
from oil sands, tar sands, and other hydrocarbon-bearing sandstones and structures.

 

B. Licensee
wishes to finance, construct and operate Oil Sands Plants that use or deploy devices, processes and methods claimed under the Patent
Rights and the Petroteq Know-How in connection with the extraction, processing and production of Licensed Products and therefore
wishes to obtain a license under the Patent Rights and the Petroteq Know-How under and in accordance with the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the Parties, the Parties agree as follows:

 

ARTICLE 1.0 – DEFINITIONS

 

1.01 Defined
Terms. Certain capitalized terms used in this Agreement, unless otherwise defined in the text hereof or unless the context
otherwise requires, shall have the meanings and definitions ascribed to them as set forth in Schedule X hereto.

 

1.02
Interpretation; Protocols.

 

(1) The
name assigned to this Agreement and the Article and Section (or subsection) captions used herein are for convenience of reference
only and shall not be construed to affect the meaning, construction or effect hereof. The terms defined in the singular shall have
a comparable meaning when used in the plural, and vice versa. Unless otherwise specified, the terms “hereof,” “herein”
and similar terms refer to this Agreement as a whole and references herein to Articles or Sections refer to Articles or Sections
of this Agreement. Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words
in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires.

 

(2) For
purposes of this Agreement, the words, “include,” “includes” and “including,” when used herein,
shall be deemed in each case to be followed by the words “without limitation”. For purposes of this Agreement, references
to “licensee” or “sublicensee” shall be deemed to include any licensee or sublicensee of the rights, privileges
and immunities that may be granted by Licensee under and pursuant to authority contained in this Agreement.

 

    Page 1 of 20

     

    

 

(3) Unless
stated otherwise, references to money herein shall mean and refer to the currency (U.S. Dollars) of the United States of America.

 

1.03 Schedule
X - Definitions. The attached Schedule X is hereby incorporated into and made a part of this Agreement for all purposes.

 

ARTICLE 2.0 GRANT OF LICENSE

 

2.01 License.
Subject to the terms and conditions set forth in this Agreement, Petroteq hereby grants to Licensee a non-exclusive, non-transferable
license under the Patent Rights and the Petroteq Know-How for use in the design, construction and operation of any and all future
Oil Sands Plants in the United States of America.

 

2.02 No
Other Grant of Rights. Except as expressly provided in this Agreement, nothing in this Agreement shall be construed to confer
any ownership interest, license, right, title, interest or other rights upon Licensee by implication, estoppel or otherwise as
to any of the Patent Rights or the Petroteq Know-How, or to any technology, intellectual property rights, or products of Petroteq
or any other entity, regardless of whether such technology, intellectual property rights, or products are dominant, subordinate
or otherwise related to any Patent Rights or the Petroteq Know- How. Any and all rights, titles and interests not specifically
granted by Petroteq hereunder are hereby reserved. For greater clarity, Petroteq shall continue to own all Patent Rights and the
Petroteq Know-How, including all parts and components of or in implementing the Patent Rights and the Petroteq Know-How for use
in the operation of Oil Sands Plants, all improvements of the foregoing regardless of by whom developed, and all intellectual property
rights in any and all of the foregoing.

 

2.03 No
Licensing or Sublicensing Rights. Licensee shall have no right or authority to license, sublicense or otherwise market to any
Person this Agreement or any of the rights and license granted to Licensee herein. Any such purported license or sublicense of
rights under this Agreement by Licensee shall be deemed null and void and shall constitute a material breach of this Agreement.

 

ARTICLE 3.0 CONSIDERATION FOR GRANT OF LICENSE

 

3.01 License
Fee. Licensee agrees to pay Petroteq a one-time non-refundable license fee of Two Million Dollars ($2,000,000)
(“License Fee”) for Oil Sands Plants designed, developed and constructed by Licensee. The Parties
recognize and acknowledge that One Million, Five Hundred Thousand Dollars ($1,500,000) of the License Fee has already been
paid by Licensee prior to the Effective Date of this Agreement in the form of investment in the existing Oil Sands Plant
owned by Petroteq located in Vernal, Utah (“Petroteq Oil Sands Plant”). Licensee shall pay the remaining
Five Hundred Thousand Dollars ($500,000) of the License Fee to Licensor by investing an additional Five Hundred Thousand
Dollars ($500,000) in the Petroteq Oil Sands Plant to be applied in the manner that the Licensee directs, with payment
required no later than twenty (20) days after the Effective Date of this Agreement. No additional License Fee shall be
required in connection with the construction of additional Oil Sands Plants by Licensee under this Agreement.

 

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3.02
License Production Royalty.

 

(a) Licensee
shall pay to Petroteq a License Production Royalty equal to five percent (5%) of the Net Revenue received by Licensee from the
production, sale or other disposition of Licensed Products from each Oil Sands Plant; provided, however, if any Licensed
Product produced and sold from any Oil Sands Plant is not covered by a Valid Claim in the country in which such Licensed Product
is made, used or sold, Licensee shall pay Petroteq an amount equal to three percent (3%) of the Net Revenue received by Licensee
from the production, sale or other disposition of any such Licensed Product.

 

(b) License
Production Royalty that becomes owed or payable to Petroteq based on the sale or other disposition of Licensed Products from an
Oil Sands Plant during any calendar quarter shall be paid to Petroteq within thirty (30) days after the end of such quarter.

 

3.03 Engineering
Services. Licensee shall be obligated to engage Valkor, LLC (or an affiliate named by Valkor) as the sole and exclusive provider
of engineering, planning and construction services (“Engineering Services”) for all Oil Sands Plants built by
or under the direction or on behalf of Licensee pursuant to this Agreement; provided, however, that fees charged
by Valkor for such engineering, planning and construction services must be competitive and reasonably consistent with industry
standard pricing. If, in the reasonable opinion of Licensee, Valkor is unable to provide such services at a reasonably competitive
rate and to the requisite standard, then Licensee shall be entitled to engage one or more other parties to provide such services.
Any third party engaged to provide Engineering Services for an Oil Sands Plant under this Agreement shall be required to execute
a binding NDA with Licensee to protect Petroteq’s Confidential Information and Petroteq Know-How pursuant to terms consistent
with the terms of this Agreement.

 

ARTICLE 4.0 REPORTS, PAYMENTS & RECORDS

 

4.01
Reports and Payments.

 

(a) Quarterly
Production Reports. Beginning with the first calendar quarter following the Completion Date of each Oil Sands Plant and
for each ensuing calendar quarter (each such quarter being a “Reporting Quarter”), Licensee shall deliver to
Petroteq, within thirty (30) days after the end of each Reporting Quarter, a Quarterly Production Report for each such Plant. Each
Quarterly Production Report generated and delivered to Petroteq for each Oil Sands Plant shall contain or include, for and during
the Reporting Quarter, the following information and data:

 

		(1)	The quantity or volume of each Licensed Product (described separately) produced
at or from the Plant during the Reporting Quarter;

 

		(2)	The quantity or volume of each Licensed Product sold or otherwise disposed of during the Reporting
Quarter, together with the price at which each such Licensed Product was sold (or disposed of), the Gross Revenue received or paid
to Licensee for each Licensed Product (or that would be paid by the purchaser thereof prior to deductions for taxes, transportation
costs or other agreed upon expenses) and the costs, expenses and other permitted deductions (if any) applied or used by Licensee
in determining the “Net Revenue” received by Licensee for and with respect to each such Licensed Product, including
the exchange rates used for any conversion or adjustments to U.S. Dollars;

 

    Page 3 of 20

     

    

 

		(3)	The License Production Royalty payable to Petroteq from and based on the
sale (or other disposition) of Licensed Products during each Reporting Quarter, together with a description of the costs, expenses
and permitted deductions (if any) used in calculating the Net Revenue received by Licensee and the License Production Royalty payable
to Petroteq for or with respect to each such Licensed Product; and

 

		(4)	A description of the “Credits” generated by Base License
Fees previously paid to Petroteq, subject to the two (2)-year limitation on the use of such Credits, that have been applied by
Licensee to reduce the License Production Royalty payable to Petroteq for or with respect to each Licensed Product; and

 

		(5)	Such other information and data as may be reasonably required by Petroteq from time to time that
relates or otherwise will contribute to a full and complete accounting of all Licensed Products produced from each Oil Sands Plant
during each Reporting Quarter, the calculation of the Net Revenue received by Licensee during such Reporting Quarter, and the License
Production Royalty owed or payable to Petroteq for or with respect to such Reporting Quarter.

 

Each Quarterly
Production Report delivered to Petroteq shall be certified on behalf of Licensee as true, correct and complete in all material
respects. If, with respect to any Oil Processing Plant, no production of Licensed Products has occurred during any Reporting Quarter,
or if no Net Revenue is received by Licensee (as to which License Production Royalty would be owed to Petroteq) during any Reporting
Quarter, the Quarterly Production Report generated with respect to such Oil Processing Plant for such Reporting Quarter shall so
state.

 

(b) Valid
Claims Data. Each Quarterly Production Report shall include a list of Petroteq Case numbers for all Patent Rights that
have Valid Claims covering the Licensed Products.

 

(c) Payment
of Royalties. Within thirty (30) days after the end of each Reporting Quarter for each Oil Sands Plant, Licensee shall
pay to Petroteq all License Production Royalty owed for and with respect to such Reporting Quarter.

 

4.02 Payment
Currency. All payments that become due and owing to Petroteq under this Agreement, including all monetary information and data
contained in each Quarterly Production Report, will be expressed and paid in U.S. Dollars. Conversion of foreign currency to U.S.
Dollars will be made at the conversion rate existing in the United States (as reported in the Wall Street Journal) on the last
working day of each Reporting Quarter for each Oil Sands Plant. All such payments to Petroteq, except for use of Credits from License
Fees previously paid by Licensee hereunder, shall be paid to Petroteq without deduction of exchange, setoff, collection, or other
charges.

 

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4.03 Records.
Licensee shall maintain, and shall cause its Affiliates to maintain, complete and accurate records of Licensed Products that
are produced, used or sold during each Reporting Quarter under this Agreement and any License Production Royalty and other
amounts payable to Petroteq with respect to each Oil Sands Plant under this Agreement, which records shall contain sufficient
information to permit Petroteq to confirm the accuracy of any reports or notifications delivered to Petroteq under this
Article 4.0. Licensee and/or its Affiliates, as applicable, shall retain such records relating to each Reportable Quarter at
or for each Oil Sands Plant for at least five (5) years after the conclusion of each such Reporting Quarter (at each Plant),
during which time Petroteq will have the right, at its expense, to cause its accountants, auditors or other designated
representatives (“Designated Audit Representatives”) to inspect such records during normal business hours for the
purposes of verifying the accuracy of any reports and payments delivered under this Agreement and Licensee’s compliance
with the terms of this Agreement. All such information and data inspected and reviewed by the Designated Audit
Representatives shall be maintained by Petroteq as confidential information as provided in Article 10. The Parties shall
reconcile any underpayment or overpayment within thirty (30) days after the Designated Audit Representatives delivers to
Petroteq the results of any inspection, review or audit hereunder. If any inspection, review or audit by Designated Audit
Representatives of the records maintained by Licensee (or any Affiliates) as provided hereunder reveals an underpayment in
excess of five percent (5%) in any calendar year, Licensee shall reimburse Licensor for all amounts incurred in connection
with such inspection, review or audit. Licensor may exercise its rights to inspect, review and audit the records of Licensee
under the provisions hereof only once every calendar year for Licensee and (separately) for each Affiliate that owns (in
whole or in part) or operates, whether directly or indirectly, an Oil Sands Plant, provided that, in each such case, Petroteq
gives to Licensee (or any Affiliate, as the case may be) written notice of at least ten (10) days prior to any such
inspection, review or audit as provided herein.

 

4.04 Late
Payments. Any payments by Licensee that are not paid on or before the date on which each such payment is due or required to
be made to Petroteq under this Agreement will bear interest at the lower of (a) three quarters of one percent (0.75%) per month
and (b) the maximum rate allowed by law. Interest will accrue beginning on the first day following the due date for each such payment
and will be compounded quarterly. Payment of such interest by Licensee will not limit, in any way, Petroteq’s right to exercise
any other remedies that it may have as a consequence of the lateness of any such payment.

 

4.05 Payment
Method. Each payment due and owing to Petroteq under this Agreement shall be paid by check or wire transfer of funds to Petroteq’s
account in accordance with written instructions provided by Petroteq. If made by wire transfer, such payments shall be marked so
as to refer to this Agreement.

 

4.06 Withholding
and Similar Taxes. All amounts to be paid to Petroteq pursuant to this Agreement shall be without deduction of exchange, collection,
or other charges, and, specifically, without deduction of withholding or similar taxes or other government-imposed fees or taxes,
except as permitted in the determining the License Production Royalty owed and payable to Petroteq as provided in this Agreement.

 

ARTICLE 5.0 WARRANTY; LIMITATION
OF LIABILITY

 

5.01 Compliance
with Law. Licensee represents and warrants that it will comply, and will ensure that its Affiliates comply, with all
local, state, federal and international laws and regulations relating to the development, manufacture, use, sale and
export/import of Licensed Products. Without limiting the foregoing, Licensee represents and warrants that it will comply, and
will ensure that its Affiliates comply, with all United States export control laws and regulations.

 

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5.02
No Warranty.

 

(a) NOTHING
CONTAINED HEREIN SHALL BE DEEMED TO BE A WARRANTY BY PETROTEQ THAT IT CAN OR WILL BE ABLE TO OBTAIN PATENTS ON PATENT APPLICATIONS
INCLUDED IN THE PATENT RIGHTS, OR THAT ANY OF THE PATENT RIGHTS WILL AFFORD ADEQUATE OR COMMERCIALLY WORTHWHILE PROTECTION.

 

(b) PETROTEQ
MAKES NO WARRANTIES WHATSOEVER AS TO THE COMMERCIAL OR SCIENTIFIC VALUE OF THE PATENT RIGHTS. PETROTEQ MAKES NO REPRESENTATION
THAT THE PRACTICE OF THE PATENT RIGHTS OR THE DEVELOPMENT, MANUFACTURE, USE, SALE OR IMPORTATION OF ANY LICENSED PRODUCT, OR ANY
ELEMENT THEREOF, WILL NOT INFRINGE ANY PATENT OR PROPRIETARY RIGHTS.

 

(c) EXCEPT
AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO ANY TECHNOLOGY, PATENTS, GOODS,
SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND EACH PARTY HEREBY DISCLAIMS WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.

 

5.03
Limitation of Liability.

 

(a) Except
with respect to matters for which Licensee is obligated to indemnify Petroteq under Article 8.0, neither Party will be liable to
the other with respect to any subject matter of this Agreement under any contract, negligence, strict liability or other legal
or equitable theory for (a) any indirect, incidental, consequential or punitive damages or lost profits, or (b) cost of procurement
of substitute goods, technology or services.

 

(b) Petroteq’s
aggregate liability for all damages of any kind arising out of or relating to this Agreement or its subject matter under any contract,
negligence, strict liability or other legal or equitable theory shall not exceed fifty percent (50%) of the amounts paid to Petroteq
under this Agreement.

 

(c) Licensee’s
aggregate liability for all damages of any kind arising out of or relating to this Agreement or its subject matter under any contract,
negligence, strict liability or other legal or equitable theory shall not exceed the lesser of (1) all amounts paid as License
Fees and Royalties by Licensee to Petroteq under this Agreement, or (2) Five Million Dollars ($5,000,000), provided however, that
such limitation of liability shall not apply to damages resulting from: (I) misappropriation of Confidential Information, Petroteq
Know-How and or any trade secrets as defined under federal and/or state law; and/or (II) any damages, loss or liability covered
by or within the scope of any insurance policy maintained by Licensee, whether or not such insurance is required by this Agreement.

 

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ARTICLE 6.0 IMPROVEMENTS

 

6.01 Ownership;
License. Petroteq at all times shall have or be entitled to ownership of all Improvements, including the intellectual property
rights embodied or contained therein or attaching thereto, regardless of whether any such Improvements are conceived, discovered,
invented or developed by Petroteq or Licensee, or by their joint efforts. In each such case, any such Improvements, subject to
the exclusive ownership rights and interests of Petroteq as provided herein, shall otherwise be subject to and within the scope
of this Agreement as specified in Section 6.03(c) below.

 

6.02
Improvements by Licensor.

 

(a) Petroteq
agrees to disclose to Licensee any and all Improvements upon the invention, discovery or development thereof by Petroteq or any
of its Representatives that have reached a stage of development suitable for evaluation, testing or commercial use or operation.
Petroteq shall permit Licensee and its Representatives to inspect, evaluate and test all such Improvements to determine whether
they, or any of them, may be useful in the practice, development or use of the Patent Rights and the Petroteq Know-How or in the
design, construction or operation of Oil Sands Plants.

 

(b) If
Licensee deems the Improvements useful, Petroteq shall grant Licensee a license to use such Improvements pursuant to the same terms
and conditions under which Licensee is entitled to use the Patent Rights and Petroteq Know-How pursuant to this Agreement. Petroteq
shall promptly execute all documents and instruments necessary to grant such rights to Licensee.

 

6.03
Improvements by Licensee.

 

(a) Licensee
agrees to disclose to Petroteq any and all Improvements upon the invention, discovery or development thereof by Licensee or any
of its Representatives that have reached a stage of development suitable for evaluation, testing or commercial use or operation
(“Licensee Improvements”). Licensee shall permit Petroteq and its Representatives to inspect, evaluate and test all
such Licensee Improvements to determine whether they, or any of them, may be useful in the practice, development or use of the
Patent Rights and Petroteq Know-How or in the design, construction or operation of Oil Sands Plants.

 

(b) Upon
Petroteq’s written request, Licensee shall promptly assign and transfer to Petroteq, by execution and delivery of such instruments
as may be reasonably required by Petroteq, all of Licensee’s rights, title and interests in or to any Licensee Improvement
conceived, discovered, invented or developed by Licensee or any of its Representatives, or by or through the joint or cooperative
efforts of Petroteq and Licensee, including all of the intellectual property rights embodied or contained therein or attaching
or arising with respect thereto. Upon any such assignment or transfer to Petroteq, Licensee shall deliver to Petroteq a copy of
all Documentation relating to any such Licensee Improvement.

 

(c) In
the event that any Licensee Improvements are assigned and transferred from Licensee to Petroteq pursuant to subsection (b)
above, then Petroteq shall grant Licensee a license to use such Licensee Improvement pursuant to the same terms and
conditions under which Licensee is entitled to use the Patent Rights and/r Petroteq Know-How pursuant to this Agreement.
Petroteq shall promptly execute all documents and instruments necessary to grant such rights to Licensee.

 

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6.04 Intellectual
Property Rights Protection. With respect to any Improvement, Petroteq shall have the exclusive right, exercisable in its sole
discretion, to prepare, file and prosecute patents and patent applications, copyrights and copyright applications, and other intellectual
property applications and registrations with Governmental Authorities, in each case in its own name anywhere in the world, and
to pursue and take such other actions steps as may be necessary in its sole judgment to protect its ownership of the intellectual
property rights contained or embodied in, or otherwise attaching to, any Improvement, regardless of whether such Improvement was
invented, discovered or developed by Petroteq (or any of its Representatives) or by Licensee (or any of its Representatives).

 

6.05 Mutual
Assistance; Further Assurance. Each Party shall, upon any request by the other Party, take such actions and execute all documents,
and cause its Representatives to take all actions and execute all documents, as may be necessary or appropriate to carry out the
provisions of this Article 6.0.

 

ARTICLE 7.0 PATENT & INTELLECTUAL
PROPERTY RIGHTS

 

7.01 Petroteq’s
Patent/IP Rights. Petroteq shall have the exclusive right (but not the obligation), in its own name and at its own cost and
expense, to file, make and prosecute, in any nation, country or jurisdiction anywhere in the world, patents and patent applications,
copyrights and copyright applications, and other intellectual property filings or registrations that are equivalent to, or that
are based upon or embody claims or features contained in the Patent Rights or the Petroteq Know-How, as the case may be, or in
any Improvement; and in each case to conduct or comply with all maintenance requirements relating to any patent, copyright or other
protective right issued to Petroteq by any Governmental Authority with respect to any of the foregoing.

 

7.02
Licensee’s Patent/IP Rights.

 

(a) Licensee
shall be entitled from time to time to request in writing (each a “Patent/IP Filing Request”) that Petroteq
file, make and prosecute, in any nation, country or jurisdiction in which Licensee has developed firm plans to construct and operate
an Oil Sands Plant under and pursuant to this Agreement, patents and patent applications, copyrights and copyright applications,
and other intellectual property filings or registrations that are equivalent to, or that are based upon or embody claims or features
contained in the Patent Rights or the Petroteq Know-How, as the case may be, or in any Improvement; and in each case to conduct
or comply with all maintenance requirements relating to any patent, copyright or other protective right issued to Petroteq by any
Governmental Authority with respect to any of the foregoing.

  

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(b) Within
forty-five (45) days after receiving a written request Following receipt of any such request by Licensee, Petroteq shall notify
Licensee in writing of one of the following proposed courses of action:

 

		(1)	Petroteq will proceed, at Licensee’s sole cost and expense (and subject to such advance payments
of estimated fees, costs and expenses as Petroteq may reasonably require of Licensee) to file, make and prosecute a patent, copyright
or other intellectual property application, in the nation, country or jurisdiction requested by Licensee, that are equivalent to,
or that are based upon or embody claims or features contained in the Patent Rights, the Petroteq Know-How, or any Improvement (and
will undertake, at Licensee’s expense, all maintenance requirements relating to any patent, copyright or other intellectual
property right issued by any Governmental Authority in response to (or with respect to) any such application filed by Licensee
as contemplated herein; or

 

		(2)	Petroteq and Licensee will enter into a mutually acceptable agreement under or pursuant to which
(i) Petroteq will authorize Licensee, at Petroteq’s attorney-in- fact and agent, to file, make and prosecute, in Petroteq’s
name and on its behalf, any such patent, copyright or other intellectual property application in the nation, country or jurisdiction
requested by Licensee, (ii) Licensee will prepare, file and prosecute all such applications at its sole costs and expenses, including
payment of application and filing fees, attorneys’ fees and other fees and expenses arising or required in connection therewith,
and (iii) Licensee will thereafter undertake, at its sole cost and expense, to manage and comply with all maintenance requirements
relating to any patent, copyright or other intellectual property right issued by any Governmental Authority in response to (or
with respect to) any such application filed by Licensee as contemplated herein; or

 

		(3)	Petroteq and License will explore, without any obligation on the part of
either Party, any other agreement or arrangement that will satisfy the Patent/IP Request submitted by Licensee hereunder.

 

7.03 Ownership
of Patent/IP Rights; License. Each patent and patent application, copyright and copyright application and other intellectual
property right filed, made and prosecuted by either Party under the provisions of this Article 7.0, together with any patent, copyright
or other intellectual property right granted or issued by any Governmental Authority in response to (or with respect to) any such
application or filings, (a) shall be owned in its/their entirety by Petroteq, and (b) shall be part of and within the scope of
the non-exclusive and non- transferable rights and license granted to Licensee under this Agreement.

 

ARTICLE 8.0 INDEMNIFICATION

 

8.01 Licensee
shall indemnify, defend and hold harmless Petroteq and its Affiliates, together with each of their respective current and
former Representatives, and each of their respective successors, heirs and assigns (collectively, the “Petroteq
Indemnitees”), individually and collectively, from and against any claim, action, judgment, settlements, interest,
liability, penalties, fines, cost, expense, damage, deficiency, loss or obligation of any kind or nature (including
reasonable attorneys’ fees and other costs and expenses of litigation as well as the cost of enforcing any right to
indemnification hereunder) based upon, arising out of or otherwise relating to this Agreement, including any cause of action
relating to any patent or other intellectual property or proprietary right infringement or product liability concerning any
product, process or service made, used, sold or performed pursuant to any right or license granted under this Agreement
(collectively “Claims”). Neither Licensee nor Petroteq shall settle any Claim without the prior written
consent of the other, which consent shall not be unreasonably withheld.

  

    Page 9 of 20

     

    

 

8.02 Licensee
shall, at its own expense, provide attorneys reasonably acceptable to Petroteq to defend against any actions brought or filed against
any Petroteq Indemnitee hereunder with respect to the subject of indemnity contained herein, whether or not such actions are rightfully
brought.

 

ARTICLE 9.0 CHALLENGES TO PATENT RIGHTS

 

9.01 Licensee
agrees not to institute or actively participate as an adverse party, or otherwise provide material support to, any action, suit
or other proceeding to invalidate or limit the scope of the Patent Rights or the Petroteq Know-How licensed hereunder, or any claim,
title, right or interest asserted or existing therein, or obtain or seek to obtain any ruling that any claim under any of the Patent
Rights is unenforceable or not patentable or that any Licensed Product would not, but for the licenses granted hereunder, infringe
one or more claims of any Patent Rights. This Section shall survive the termination or expiration of this Agreement.

 

ARTICLE 10.0 CONFIDENTIALITY AND PETROTEQ KNOW-HOW

 

10.01 Licensee
acknowledges that, in connection with this Agreement, it will gain access to Confidential Information that is owned (whether directly
or through licenses from Third Persons) or controlled, or that has been developed, by Petroteq or its Affiliates, including the
Petroteq Know-How. As a condition to being provided with Confidential Information, Licensee shall (a) not use the Confidential
Information other than as necessary to exercise its rights and perform its obligations under this Agreement, and (b) maintain the
Confidential Information in confidence and not disclose the Confidential Information to any Third Person without Petroteq’s
prior written consent.

 

10.02 If
Licensee becomes legally compelled to disclose any Confidential Information, Licensee shall provide prompt written notice to Petroteq
so that Petroteq may seek a protective order or other appropriate remedy or waive its rights and disclose only the portion of Confidential
Information that it is legally required to furnish. If a protective order or other remedy is not obtained, or Petroteq waives compliance,
Licensee shall, at its own expense, use reasonable efforts to obtain assurance that confidential treatment will be afforded the
Confidential Information.

 

ARTICLE 11.0 TERM AND TERMINATION

 

11.01 Term.
The term of this Agreement shall commence on the Effective Date and, unless earlier terminated as provided in this Article, shall
continue in full force and effect until the expiration of the last to expire Valid Claim (the “Term”).

  

    Page 10 of 20

     

    

 

11.02
Termination.

 

(a) Termination
for Default. In the event that either Party commits a material breach of its obligations under this Agreement and fails
to cure that breach within ninety (90) days after receiving written notice thereof from the non-breaching Party, the non-breaching
Party may terminate this Agreement immediately upon written notice to the Party in breach.

 

(b) Bankruptcy.
Petroteq may terminate this Agreement upon notice to Licensee if Licensee becomes insolvent, is adjudged bankrupt, applies for
judicial or extra-judicial settlement with its creditors, makes an assignment for the benefit of its creditors, voluntarily files
for bankruptcy or has a receiver or trustee (or the like) in bankruptcy appointed by reason of its insolvency, or in the event
an involuntary bankruptcy action is filed against Licensee and is not dismissed within ninety (90) days, or if Licensee becomes
the subject of liquidation or dissolution proceedings or otherwise discontinues its business.

 

11.03
Effect of Termination or Expiration.

 

(a) Termination
of Rights. Upon expiration or termination of this Agreement by either Party under or pursuant to any provision of this
Agreement:

 

		(1)	The rights and licenses granted to Licensee shall terminate and expire and
shall revert immediately to Petroteq without any further obligation on the part of Petroteq hereunder and Petroteq shall continue
to own all of the Patent Rights and Petroteq Know-How, including all parts and components of or implementing the Patent Rights
for use in the operation of Oil Sands Plants, all improvements of any of the foregoing regardless of by whom developed, and all
intellectual property rights in any and all of the foregoing. Other than as set out in Section 11.02(a), neither Licensee nor its
Affiliates may make any other use or exploitation of the Patent Rights or the Petroteq Know-How; and

 

		(2)	Notwithstanding the provisions contained in Section 11.03(a)(1), this Agreement and the rights
and obligations of the Parties hereunder shall survive and shall continue in full force and effect as to (i) any Oil Sands Plant
that, as of the date of any such termination or expiration under this Agreement, is in operation, under construction, or in planning
wherein at least $50,000 has been expended, (ii) any rights, duties or obligations that, by their nature or as provided in this
Agreement, are to extend beyond the termination of this Agreement. In such event and with respect to any such Oil Sands Plant,
Petroteq shall have and retain all of its rights and remedies available to it under this Agreement based on or as a result of any
material breach hereof by Licensee, including (i) the right to terminate this Agreement in its entirety in the event that Licensee
breaches or otherwise fails to comply with any material term, condition or obligation under this Agreement, and/or (ii) the right
to enforce compliance with Licensee’s obligations or seek damages for the breach or violation thereof under the provisions
contained in Section 11.02(b).

  

    Page 11 of 20

     

    

 

(b) Accruing
Obligations. Termination or expiration of this Agreement shall not relieve the Parties of obligations accruing prior to
such termination or expiration, including obligations to pay amounts accruing hereunder up to the date of any such termination
or expiration.

 

ARTICLE 12.0 MISCELLANEOUS

 

12.01 No
Security Interest. Licensee shall not enter into any agreement under which Licensee grants to or otherwise creates in any Third
Person a security interest in this Agreement or any of the rights granted to Licensee herein. Any grant or creation of a security
interest purported or attempted to be made in violation of the terms of this Section shall be null and void and of no legal effect.

 

12.02 Use
of Name. Except as provided below, each Party shall not, and shall ensure that its Affiliates shall not, use or register the
name of the other Party (alone, as part of another name, or in part by reference to a Party’s member or shareholder) or any
trademarks, logos, seals, insignia or other words, names, symbols or devices that identify the other Party or any other Party unit,
division or affiliate with the other Party (“Party Names”) for any purpose except with the prior written approval
of Petroteq and in accordance with any restrictions or conditions that it may imposed with respect to any use of the Party’s
Names. Without limiting the foregoing, Licensee shall, and shall ensure that its Affiliates shall, cease all use of Petroteq Names
on the termination or expiration of this Agreement except as otherwise approved in writing by Petroteq in advance of any such use
by Licensee or any Affiliate. This restriction shall not apply to any information required by law to be disclosed to any governmental
entity.

 

12.03 Entire
Agreement. This Agreement is the sole agreement with respect to the subject matter hereof and, except as expressly set forth
herein, supersedes all other agreements and understandings between the Parties with respect to the same.

 

12.04 Notices.
Unless otherwise specifically provided, all notices required or permitted by this Agreement shall be in writing and may be delivered
personally, or may be sent by facsimile, expedited delivery or certified mail, return receipt requested, to the following addresses,
unless the parties are subsequently notified of any change of address in accordance with this Section:

 

If to Petroteq:

 

Petroteq Energy Inc.

15315 West Magnolia Boulevard, Suite 120

Sherman
Oaks, California 91403

Telephone: (800) 979-1897

Email: executive@petroteq.energy.com

If
to Licensee:

Greenfield Energy, LLC

21732 Provincial Boulevard, Suite 160

Katy, Texas 77450

Telephone: (832) 859-5060

Email: steven.byle@valkor.com

  

    Page 12 of 20

     

    

 

Any notice shall be deemed to have been
received as follows: (a) by personal delivery or expedited delivery, upon receipt; {b) by facsimile, one business day after transmission
or dispatch; (c) by certified mail, as evidenced by the return receipt. If notice is sent by facsimile, a confirming copy of the
same shall be sent by mail to the same address.

 

		12.05	Governing Law; Choice of Forum.

 

(a) This
Agreement will be governed by, and construed in accordance with, the substantive laws of the state of Utah, USA without giving
effect to any choice or conflict of law provision, except that questions affecting the construction and effect of any patent shall
be determined by the law of the country in which the patent shall have been granted.

 

(b) Any
action, suit or other proceeding that shall be instituted by a Party and arising under or relating to this Agreement (each an “Action”)
shall be brought exclusively in federal and state courts located in the State of Utah and in no other jurisdiction or forum, and
each of the Parties hereby submits and consents to the personal jurisdiction of the federal and state courts sitting in Salt Lake
City, Utah. Each Party agrees not to raise any objection at any time to the laying or maintaining of the venue of any Action in
any of the specified courts, irrevocably waives any claim that the Action has been brought in any inconvenient forum and further
irrevocably waives the right to object, with respect to any Action, that such court does not have any jurisdiction over such Party.

 

12.06 Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives,
successors and permitted assigns.

 

12.07 Headings.
Article, section and subsection headings are inserted for convenience of reference only and do not form a part of this Agreement.

 

12.08 Counterparts.
The Parties may execute this Agreement in two or more counterparts, each of which shall be deemed an original, but both of which
together shall constitute one and the same instrument. Transmission by facsimile or electronic mail of an executed counterpart
of this Agreement shall be deemed to constitute due and sufficient delivery of such counterpart. If by electronic mail, the executed
Agreement must be delivered in a .pdf format.

 

12.09 Amendment;
Waiver. This Agreement may be amended, modified, superseded or canceled, and any of the terms may be waived, only by a written
instrument executed by each Party or, in the case of waiver, by the Party waiving compliance. The delay or failure of either Party
at any time or times to require performance of any provisions hereof shall in no manner affect the rights at a later time to enforce
the same. No waiver by either Party of any condition or of the breach of any term contained in this Agreement, whether by conduct
or otherwise, in any one or more instances, shall be deemed to be, or considered as, a further or continuing waiver of any such
condition or of the breach of such term or any other term of this Agreement.

 

12.10 No
Agency or Partnership. Nothing contained in this Agreement shall give either Party the right to bind the other or be deemed
to constitute either Party as agent for or partner of the other or any Third Person.

  

    Page 13 of 20

     

    

 

12.11 
Assignment and Successors.

 

(a) This
Agreement is a non-transferrable license and may not be assigned by Licensee, and no sublicense or other user rights may be licensed,
sublicensed or otherwise granted or extended hereunder by Licensee to any Person.

 

(b) Petroteq
shall have the right at any time to assign all or any part of this Agreement to any Person provided that, in each case the assignee
agrees in writing to be bound by the terms of this Agreement.

 

(c) Any
assignment, sublicense or other grant of rights under this Agreement by Licensee without complying with the provisions hereof shall
constitute a material breach of this Agreement. Any assignment, sublicense or other grant of rights under this Agreement purported
or attempted to be made in violation of the terms of this Section shall be null and void and of no legal effect.

 

12.12 Force
Majeure. Except Licensee’s obligation to pay license fees, royalties and other monetary obligations hereunder, neither
Party will be responsible for delays resulting from causes that are wholly beyond the reasonable control of such Party, including
fire, explosion, flood, war, strike, or riot, provided that the nonperforming Party uses commercially reasonable efforts to avoid
or remove such causes of nonperformance and continues performance under this Agreement with reasonable dispatch whenever such causes
are removed.

 

12.13 Interpretation.
Each Party acknowledges and agrees that (a) it and/or its counsel reviewed and negotiated the terms and provisions of this Agreement
and has contributed to its revision, (b) the rule of construction to the effect that any ambiguities are resolved against the drafting
party shall not be employed in the interpretation of this Agreement, (c) the terms and provisions of this Agreement shall be construed
fairly as to both Parties and not in favor of or against either Party, regardless of which Party was generally responsible for
the preparation of this Agreement.

 

12.14 Severability.
If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed
unenforceable, it is the intention of the Parties that the remainder of this Agreement shall not be affected.

 

[SIGNATURES ON FOLLOWING PAGE]

 

    Page 14 of 20

     

    

 

 

IN WITNESS WHEREOF, each Party
has agreed, executed, and delivered this Agreement with effect for all purposes as of the date first hereinabove written.

 

	LICENSOR:	 	LICENSEE:
	 	 	 
	PETROTEQ ENERGY INC.	 	GREENFIELD ENERGY, LLC
	 	 	 	 	 
	By:	/s/ Aleksandr Blyumkin	 	By:  	/s/ Steven M. Byle
	Name:	Aleksandr Blyumkin	 	Name:	Steven M. Byle
	Title: 	Executive Chairman	 	Title: 	Manager
	Date:	11/14/2020	 	Date:	11/14/2020
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	/s/ John Potter
	 	 	 	Name:	John Potter
	 	 	 	Title: 	Manager
	 	 	 	Date:	11/14/2020

  

    Page 15 of 20

     

    

 

SCHEDULE
X

DEFINED TERMS

 

Capitalized terms used
in this Agreement, unless otherwise defined in the text thereof, shall have the following meanings:

 

“Affiliate”
means, with respect to a Party, any other Person controlling, controlled by or under the common control of such Party. For
purposes hereof, the term “control” (or any equivalent term) means having ownership of at least fifty percent (50%)
of the voting securities of a Person or the power, whether through voting power or otherwise, to control the management policies
of such Person.

 

“Applicable
Law” means all Laws and Orders enacted, adopted, promulgated or issued by any Governmental Authority having jurisdiction
over all or any portion of this Agreement or the performance thereof, or by any Court having jurisdiction over the Parties, including
(a) any procedural rules or requirements that are or may be applicable to any claim or other legal or equitable relief taken or
pursued by a Party hereunder, (b) permits, authorizations, certifications, requirements and restrictions imposed by Applicable
Law.

 

“Claim”
means any claim, demand, suit, action, arbitration, cause of action, complaint, criminal prosecution, charge or proceeding,
notice of violation or other legal or administrative action or proceeding, threatened or initiated in or before any Court or Governmental
Authority, or otherwise, having or alleging subject matter jurisdiction and personal jurisdiction over the parties, seeking declaratory
relief, monetary damages, civil penalties, fines, permanent or temporary injunctive or other equitable relief, remedial or removal
action, corrective action or measures, or any other remedy available at law or in equity, or otherwise.

 

“Completion
Date” means, with reference to Article 4.0 of this Agreement, the date on which the construction of any Oil Sands Plant
has been completed and the startup of such Plant has been successfully achieved.

 

“Confidential
Information” means all non-public information, data and documentation disclosed or otherwise made available by Petroteq
to Licensee or any of its Affiliates, or to any of their respective Representatives, either directly or indirectly, whether in
oral, written, electronic or other form or media, and whether or not such information is marked, designated or otherwise identified
as “confidential” and including any information that, due to the nature of its subject matter or circumstances surrounding
its disclosure, would reasonably be understood to be confidential or proprietary, consisting of, involving or relating to any of
the following:

 

(a) This
Agreement and any other agreement, contract, correspondence, report, summary and other writing (whether in print or digital format
or otherwise) executed or exchanged between or among the Parties or their Representatives (and including any drafts or summaries
thereof);

 

(b) Corporate,
business, financial, accounting, legal, regulatory and operating information and data of Petroteq and its Affiliates,
including organization charts, business, strategic and marketing plans, governance records, financial statements, contracts
and leases, properties, production and test data, reserves and resources studies, estimates and valuations, suppliers, client
and customer lists, product and raw material prices and costs, photographs and other media and image recordings or depictions
of plants and equipment, and any other information and data developed, deployed or used by Petroteq or any of its Affiliates
in their respective businesses or operations;

 

    Page 16 of 20

     

    

 

(c) Petroteq
Know-How and other unpatented inventions, ideas, methods and methodologies, processes, products, product designs, configurations,
discoveries, technical information, know-how, unpublished patent applications, invention disclosures, invention summaries and other
confidential intellectual property;

 

(d) All
designs, specifications, documentation, components, images, icons, audiovisual components and objects, schematics, drawings, protocols,
processes, and other visual depictions, in whole or in part, of any of the foregoing; information technology, systems, platforms
and software, including source code, object code, algorithms and other components of any software; and all notes, analyses, compilations,
reports, forecasts, studies, samples, data, statistics, summaries, interpretations and other materials that contain, are based
on, or otherwise reflect or are derived from any of the foregoing, in whole or in part;

 

(e) Any
Improvement (except to the extent disclosed in any patent application or other public filing required by law);

 

		(f)	All Documentation; and

 

(g) Information
considered a “trade secret” under the (U.S.) Defend Trade Secrets Act (Pub. L. No. 114-153, 130 Stat. 376, codified
in Title 18, United States Code) (“DTSA”) and/or under the Utah Uniform Trade Secrets Act.

 

“Crude
Oil” means A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid
at atmospheric pressure after passing through surface separating facilities. Depending upon the characteristics of the crude stream,
it may also include

1. Small amounts of
hydrocarbons that exist in gaseous phase in natural underground reservoirs but are liquid at atmospheric pressure after being
recovered from oil well (casing head) gas in lease separators and are subsequently comingled with the crude stream without
being separately measured. Lease condensate recovered as a liquid from natural gas wells in lease or field separation
facilities and later mixed into the crude stream is also included; 2. Small amounts of nonhydrocarbons produced with the oil,
such as sulfur and various metals; 3. Drip gases, and liquid hydrocarbons produced from tar sands, oil sands, gilsonite, and
oil shale. [see https://www.eia.gov/tools/glossary/index.php?id=C]

 

“Governmental
Authority” means any legislature, agency, bureau, branch, department, division, commission, court, tribunal, magistrate,
justice, multi-national organization, quasi- governmental body, or other similar recognized organization or body of any nation,
country or politically sovereign entity, including any federal, state, county, municipal, local, provincial government.

 

    Page 17 of 20

     

    

 

“Gross
Revenue” means the gross proceeds derived from or generated by the sale or disposition of any Licensed Product produced
and sold from any Oil Sands Plant, defined as the lesser of (a) the sales price less all direct, reasonable Post-Processing costs,
including third party technology costs, or (b) the value of the Licensed Product at the exit from the Oil Sands Plant as established
by more than one commercial quote by third parties.

 

“Improvements”
means (a) any and all patentable or non-patentable inventions, discoveries, technology and information of any type whatsoever,
including processes, methods, trade secrets, formulae, compositions, designs, devices, operating techniques, technical information,
knowledge, experience, improvements, modifications, derivative works, enhancements and know-how, in each case that relates in any
way to the claims asserted or embodies in the Patent Rights or the Petroteq Know-How, and (b) all of the intellectual property
rights contained in or derived from any of the foregoing.

 

“License
Fees” means a fixed sum, expressed in U.S. Dollars, that must be paid by Licensee to Petroteq for each Oil Sands Plant
developed by Licensee as provided in Section 3.01 of this Agreement.

 

“License
Production Royalty” means the royalty payable to Petroteq based on the License Products produced and sold from an Oil
Sands Plant as provided in Section 3.02 of this Agreement.

 

“Licensed
Product” means (a) all forms of Crude Oil, Petroleum, or other hydrocarbon products extracted or produced from tar sands,
oil sands, gilsonite and oil shale, and (b) all commercially salable sand or silica products that may be produced at or in an Oil
Sands Plant by a device(s), process(es) or other means covered by a Valid Claim.

 

“Net Revenue”
means, with respect to an Oil Sands Plant, the Gross Revenue reduced by

(a) any costs and expenses
incurred by Licensee in transporting Licensed Products from the tailgate of an Oil Sands Plant to the delivery point for the first
sale or other disposition of the Licensed Products, or any of them, (b) any production-related taxes or royalties imposed by any
governmental authority or landowner on the value of the Licensed Products following the production thereof at any Oil Sands Plant,
and (c) the cost of any chemical(s) and solvent(s) consumed in the production process.

 

“Oil
Sands Plant” means a facility that, using or deploying claims under the Patent Rights or any Petroteq Know-How, is designed
or has the capacity to extract, process and/or produce one or more Licensed Products from hydrocarbon-bearing sandstones, sediments
and soils. The basic steps in the process are (a) crushing of ore, (b) mixing ore with solvent, and (c) then separating solids
from liquids, wherein the solid stream is dried to produce sand and the liquid stream is heated to recover all or a fraction of
the solvent and other chemicals (if any) for reuse, thereby producing a bitumen product. Each Oil Sands Plant shall be considered
singular, whether one or multiple trains, so long the facilities, equipment and trains are contained within one (1) mile of each
other or on a single oil sands deposit and under a single oil, gas or minerals estate, agreement or lease.

  

    Page 18 of 20

     

    

 

“Person”
means any natural person, corporation, company, partnership (including both general and limited partnerships), limited liability
company, sole proprietorship, association, joint stock company, firm, trust, trustee, joint venture, unincorporated organization,
executor, administrator, legal representative or other legal entity, including any governmental authority, entity or instrumentality.

 

“Petroleum”
means a broadly defined class of liquid hydrocarbon mixtures, including crude oil, lease condensate, unfinished oils, refined
products obtained from the processing of Crude Oil and natural gas plant liquids.

[see https://www.eia.gov/tools/glossary/index.php?id=P#petro]

 

“Petroleum
Products” means oil or hydrocarbon products obtained from the processing of Crude Oil (including lease condensate), natural
gas, and other hydrocarbon compounds and include unfinished oils, liquefied petroleum gases, pentanes plus, aviation gasoline,
motor gasoline, naphtha-type jet fuel, kerosene-type jet fuel, kerosene, distillate fuel oil, residual fuel oil, petrochemical
feedstocks, special naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still gas, and miscellaneous products.

[see https://www.eia.gov/tools/glossary/index.php?id=P#petro]

 

“Petroteq
Know-How” means any non-public information and other valuable resources owned by and/or controlled by Petroteq or any
of its Affiliates and pertaining to any Patent Right or that otherwise may be useful in the extraction, processing, production
and/or upgrade of any Licensed Product, in each case that may be provided to Licensee as reasonably required to accomplish the
intent of this Agreement as determined by Petroteq, directly or indirectly, including technical information, trade secrets, formulas
and formulations, prototypes, configurations, specifications, directions, instructions, test protocols, procedures and results,
studies, analyses, raw material sources, production data, formulation or production technologies, conceptions, ideas, innovations,
discoveries, inventions, processes, methods, materials, machines, devices, equipment, enhancements, modifications, technological
developments, techniques, systems, tools, designs, drawings, plans, software, documentation, programs, software and other knowledge,
information, skills and materials, and any modifications, variations, derivative works and improvements to or otherwise relating
to any of the foregoing. For greater certainty, any of the above information and other valuable resources that may be disclosed
to Licensee by Petroteq shall be considered Petroteq Know-How and subject to this Agreement.

 

“Patent/IP Request” has the meaning
specified in Section 7.02(a).

 

“Patent
Rights” means, in each case to the extent owned, developed or controlled by Petroteq, (a) the patents and patent applications
filed by or issued to Petroteq in any country or jurisdiction or that are entitled to any form of exclusivity or other protection
in any country or jurisdiction (including any PCT and/or U.S. utility application claiming priority to such application(s) that
are filed on or before the one year conversion date of such application(s)); (b) any patent or patent application that claims
priority to and is a divisional, continuation, reissue, renewal, reexamination, substitution or extension of any patent application
identified in clause (a) herein; (c) any patents issuing on any patent application identified in clause (a) or (b) herein, including
any reissues, renewals, reexaminations, substitutions or extensions thereof; (d) any claim of a continuation-in-part application
or patent (including any reissues, renewals, reexaminations, substitutions or extensions thereof) that is entitled to the priority
date of, and is directed specifically to subject matter specifically described in, at least one of the patents or patent applications
identified in clause (a), (b) or (c) herein; (e) any foreign counterpart (including PCTs) of any patent or patent application
identified in clauses (a), (b) or (c) herein or of the claims identified in clause (d) herein; and (f) any supplementary protection
certificates, exclusivity periods, any other patent term extensions and exclusivity periods and the like of any patents and patent
applications identified in clauses (a) through (e) herein.

 

    Page 19 of 20

     

    

 

“Post
Processing” are processes performed upon the Licensed Product, wherein the Licensed product is one of two product streams.
First is the Petroleum product output from the end of the solvent recovery process, typically a low API bitumen product, wherein
additional processes may be performed to upgrade the value of the bitumen into different petroleum products such as removing the
light end diesel fractions, or mixing with other substances to form an emulsion, or potentially cracking the oil into a higher
API product. Second is the potential sand or silica product, typically dry sand with a range of particle sizes that may be post-processed
by washing, screening, grinding, milling or other process to make the sand salable or increase the sale price.

 

“Petroteq Indemnitees” has the
meaning specified in Section 8.01 above.

 

“Quarterly
Production Report” means the report delivered by Licensee to Petroteq under and in accordance with Article 4.0 of this
Agreement.

 

“Reporting
Quarter” means, with reference to Article 4.0 of this Agreement, each calendar quarter for and with respect to which
Licensee generates and delivers a Quarterly Production Report to Petroteq.

 

“Representative(s)”
means, with respect to a Party, its directors, officers, principals, members, managers, employees, contractors, advisors, attorneys,
accountants, and duly authorized agents or representatives.

 

“Third
Person” means any Person other than the Parties (including any Affiliate that becomes a Party under or pursuant to Section
2.04).

 

“Valid
Claim” means (a) a claim of an issued and unexpired patent within the Patent Rights that has not been (1) held permanently
revoked, unenforceable, unpatentable or invalid by a decision of a court or governmental body of competent jurisdiction in a final,
non-appealable (or non-appealed) judgment, order or decision, (2) rendered unenforceable through disclaimer or otherwise, (3) abandoned,
or (4) permanently lost through an interference or opposition proceeding without any right of appeal or review; or (b) a pending
claim in or under a pending patent application within the Patent Rights that (1) has been asserted and continues to be prosecuted
in good faith, and (2) has not been abandoned or finally rejected without the possibility of appeal or refiling.

 

 

Page 20 of 20

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