Document:

CC Filed by Filing Services Canada Inc. 403-717-3898

Premium Petroleum Inc.

1610, 736 – 6th Avenue SW

Calgary, Alberta T2P 3T7

604-836-2292  bruce@thomson.org

February 6, 2006

Micron Enviro Systems Inc.

1205 - 789 West Pender Street

Vancouver BC  V6C 1H2

Attention:  Mr. Bernie McDougall, President

Dear Sir:

Re: FARMOUT AGREEMENT

Boyne Lake Prospect

Section 15, Township 61, Range 11, West of the 4th Meridian

Alberta, Canada

The following reflects the terms and conditions upon which Premium Petroleum Inc. (“Premium”) is prepared to farmout its interest in the Farmout Lands to Micron Enviro Systems Inc. (“Micron”)

NOW THEREFORE in consideration of the premises and of the covenants and agreements of the Parties, the Parties do hereby covenant and agree as follows:

1.

DEFINITIONS AND INTERPRETATION

Each capitalized term used in this Agreement, including the recitals, will have the meaning given to it in the Farmout & Royalty Procedure, and, in addition:

(a)

“Contract Depth” means a depth sufficient to penetrate 15 metres into the Upper Manville Clearwater Group or approximately 600 metres subsurface, whichever is shallower;

(b)

“Farmout Lands” means the lands and rights as set out on Schedule “A” attached hereto;

(c)

“Farmee” means Micron;

(d)

“Farmor” means Premium;

(e)

“Farmout & Royalty Procedure” means the 1997 CAPL Farmout & Royalty Procedure including the elections and amendments thereof, which is attached hereto as Schedule “B”; and

(f)

“Operator” means Premium.

 

Page 1 of 14

2.

SCHEDULES

The following Schedules are attached hereto and made part of this Agreement:

(a)

Schedule “A”; which describes the Title Documents, Farmout Lands, the Farmout Working Interest, and Encumbrances;

(b)

Schedule “B”, which is the 1997 CAPL Farmout and Royalty Procedure; 

(c)

Schedule “C”, which is the 1990 CAPL Operating Procedure (hereinafter referred to as the “Operating Procedure”) and the 1996 PASC Accounting Procedure (hereinafter referred to as the “Accounting Procedure”), which is attached to and made part of the Operating Procedure as Exhibit I;

(d)

Schedule “D”, which is the 1993 CAPL Assignment Procedure (hereinafter referred to as the “Assignment Procedure”);

(e)

Schedule “E,” which specifies the type of drilling information required to be supplied by the Farmor to the Farmee pursuant to the Farmout and Royalty Procedure.; and

(f)

Schedule “F”, which specifies the Area of Mutual Interest (hereinafter referred to as the “AMI”)

3.

TEST WELL

On or before February 10, 2006 and subject to surface access, rig availability and regulatory approval,  Farmor, as Operator, shall commence the drilling of a well (hereinafter called the “Test Well”) at a location of it’s choice on the Farmout Lands. Farmee hereby agrees to be responsible for and pay five (5%) percent of the cost, risk and expense involved in drilling the Test Well to Contract Depth.  Farmor shall, in its sole discretion test, complete, equip, cap or abandon the Test Well in accordance with Article 3.00 of the Farmout and Royalty Procedure.  Notwithstanding the foregoing in the event that the well is not commenced on or before February 10, 2006, it will be commenced as soon thereafter as is practical. 

4.

PROSPECT GENERATION COSTS

Prospect generation costs of $75,000 will form part of the AFE raised for the drilling of the test well and Farmee will be responsible for its proportionate share of these costs.

5.

SEISMIC

A seismic program has been acquired at an estimated cost of $150,000 which will form part of the AFE raised for the drilling of the test well and Farmee will be responsible for its proportionate share of the actual costs.

 

Page 2 of 14

6.

EARNING

a)

Upon completion of the drilling, testing and completing of the Test Well and further provided the Farmee is not in default with respect to Clause 3, 4 or 5  hereof or the Farmout & Royalty Procedure, the Farmee will have earned an interest in the Farmout Lands from surface to the depth drilled by the Test Well such that the interests of the parties will be as follows:

  
				
	Party

	Spacing unit for the Test Well

	Balance of the Farmout Lands

	 	Before Payout

	After Payout*

	 
	Micron

	5%

	3%

	3%

	 	 	 	 
	Premium et al

	95%

	97%

	97%

	 	 	 	 

  

*

Assuming that Payout occurs and Premium elects to convert its royalty to a working interest.

b)

Farmor herein reserves a Gross Overriding Royalty Interest as provided in Articles 5.00 and 6.00 of the Farmout and Royalty Procedure.  (1/23.8365 – 5% to 15% on Oil and 15% on Natural Gas) based on 5% of production Farmor shall have the right to elect within 30 days of notification of payout to convert the Overriding Royalty to the working interest as provided in the table above.

7.

FUNDING REQUIREMENTS

The following table summarizes the estimate costs involved with this project.

  
				
	Operation

	Gross Costs

	Farmee’ Percentage

	Farmee’s Share

	Prospect Development Costs

	$75,000

	5%

	$3,750

	Seismic

	$150,000

	5%

	$7,500

	Drill and abandon Test Well

	$302,500

	5%

	$15,125

	Complete Test Well (including casing and perforation)

	Per AFE

	5%

	To be determined

	Equip and Tie-in Test Well

	To be determined

	5%

	To be determined

  

 

Page 3 of 14

8.

AREA OF MUTUAL INTEREST

An Area of Mutual Interest is outlined on the plat attached as Schedule “F” and shall remain in effect until December 31, 2006.  The interests of Farmee and Farmor in the Area of Mutual Interest shall be shared based on the after payout interest earning basis as in this Farmout Agreement.

9.

LIMITATIONS ACT

The 2 year period for seeking a remedial order under section 3(1)(a) of the Limitations Act, S.A. 2000 c. L-12, as amended (the “Act”), for any claim (as defined in the Act) arising in connection with this Agreement is extended to:

(a)

for claims disclosed by an audit, 2 years after the time this Agreement permitted that audit to be performed; or

(b)

for all other claims, 4 years.

10.

NO ASSIGNMENT PRIOR TO EARNING

The Farmee shall not assign all or any portion of its interest pursuant to this Agreement until such time as Farmee has completed its earnings by drilling the Test Well or the Farmee’s right to earn those interests has terminated, unless the Farmor’s prior written consent is obtained.

11.

OPERATIONS

From and after the date on which Farmee  earns an interest in the  Farmout Lands, the Operating Procedure shall become effective with Premium named Operator there under.

12.

ADDRESSES FOR NOTICES

The Parties’ addresses for notices for this Agreement are:

Micron Enviro Systems Inc.

Premium Petroleum Inc.

1205 – 789 West Pender Street

1610, 736 – 6th Avenue SW

Vancouver, B.C.  V6C 1H2

Calgary, Alberta T2P 3T7

Attention:  Bernie McDougall 

Attention:  Bruce A. Thomson, B.A.Sc.

President

President & CEO

13.

ENVIRONMENTAL IMPACT

The Parties agree that, for the purposes of clause 2901 of the 1990 Operating Procedure, the phrase “all wells on the Joint Lands have been abandoned” shall be deemed to include the requirements for remediation of any environmental damage or problems arising due to operations of any nature whatsoever carried out under this Agreement, with such remediation occurring to the standard required by the Regulations and by good industry practice.  Subject to Article IV of the 1990 Operating Procedure, where any such environmental damage or problem arises after termination of this Agreement, the Parties shall remain liable for remedial costs and expenses so incurred in accordance with their respective working interests and each Party shall indemnify the 

 

Page 4 of 14

other Party with respect to the indemnifying Party’s share thereof.  This clause shall survive termination of this Agreement.

14.

JURISDICTION

This Agreement shall be subject to and be interpreted, construed and enforced in accordance with the laws in effect in the Province of Alberta.  Each Party accepts the jurisdiction of the courts of the Province of Alberta and all courts of appeal therefrom.

15.

TIME IS OF THE ESSENCE

Time shall be of the essence in this Agreement.

If this reflects your understanding of the terms and conditions agreed upon respecting this Agreement, please sign and return one counterpart execution page to my attention before the close of business on February 7, 2006.

Yours truly,

PREMIUM PETROLEUM INC.

/s/ Bruce A. Thomson

Bruce A. Thomson, B.A.Sc.

President & CEO

Agreed to this 6th  day of February, 2006

MICRON ENVIRO SYSTEMS INC.

/s/ Bernie McDougall

___________________________

Bernie McDougall

President

Execution page to Farmout Agreement dated the 6th day of February 2006 and made between Premium Petroleum Inc. and Micron Resources Inc

 

Page 5 of 14

SCHEDULE  “A”

Attached to and made part of the Farmin Agreement dated February 6, 2006 between Premium Petroleum Inc. and Micron Enviro Systems Inc..

.

Boyne Lake Prospect:

			
	Description

	 	Encumbrances

	 	 	 
	Section 15, Township 61 Range 11 West of the 4th Meridian,

Alberta, Canada

	 	Crown Lessor Royalty

plus

GOR of 6% of 100%

	 	 	 

 

Page 6 of 14

SCHEDULE  “B”

Attached to and forming part of an Agreement dated February 6, 2006

between Premium Petroleum Inc. as Farmor and Micron Enviro Systems Inc. as Farmee

Boyne Lake Prospect

Canadian Association of Petroleum Landmen (1997) – “CAPL”

Farmout & Royalty Procedure Elections and Amendments

1997 CAPL Farmout & Royalty Procedure Elections

1.

Clause 1.01 (f) – Effective Date: February 6, 2006

2.

Clause 1.01 (t) – Payout (if Article 6.00 applies): 

Alternate A –  [X]

Alternate B – 
[   ] 

Alternate B options, if applicable –                    
m3 of Equivalent Production and             
years.

3.

Clause 1.02 – Incorporation Of Provisions From 1990 CAPL Operating Procedure:

(i) 

Insurance (311)

Alternate A - 
[X] 

     
Alternate B -  [   ] 

(ii) 

Addresses For Notices (2202)

See Clause 11 of Head Agreement

4.

Article 4.00 – Option Wells:

will
[   ] / [X] will not apply.

5.

Article 5.00 – Overriding Royalty:

will
[X] / [   ] will not  apply.

6.

Subclause 5.01A, – Quantification of Overriding Royalty:

(a)

Crude Oil, Alternate 2

If Alternate 1 is selected,              
%

If Alternate 2 is selected, 1/23.8365, min 5%  max 15%.

(b)

Other, Alternate 1 

If Alternate 1 is selected, 15%

If Alternate 2 is selected,               
% in (i) and               
% in (ii).

7.

Clause 5.04B, – Permitted Deductions:  Alternate 1 

8.

Article 6.00 – Conversion of Overriding Royalty: will
[X] / will not [   ] apply.

Clause 6.04 A. That interest as specified in the Head Agreement

9.

Article 8.00 (Area of Mutual Interest): will
[X] / will not [   ] apply.

10.

Clause 11.02 – Reimbursement of Land Maintenance Costs: will
[   ] / will not [X] apply.

 

Page 7 of 14

SCHEDULE  “C”

Attached to and forming part of an Agreement dated February 6, 2006

between Premium Petroleum Inc. as Farmor and Micron Enviro Systems Inc. as Farmee

                      (Summary of rates and electives re: Operating Procedure)

                                   1990 CAPL OPERATING PROCEDURE

PAGE 9, CLAUSE 311

-

Alternate "A"

PAGE 15, CLAUSE 604

-

Alternate "B"

.

(a)

in the case of petroleum:  2.5%

(b)

in the case if natural gas:   the greater of 3.0% or $150.00/month

(c)

in the case of natural gas liquids:  $3.00/m3

(d)

in the case of sulphur:  $5.00/t

PAGE 19, CLAUSE 903

-

Alternate "A"

PAGE 23, CLAUSE 1007(a)(IV)

-

400% and 500% respectively

PAGE 25, CLAUSE 1010(a)(iv)

-

Plains:

  180 days

PAGE 36, CLAUSE 2202

-

Address for Service:

See Clause 12 of Head Agreement

PAGE 37, CLAUSE 2401

-

Alternate "A"

PAGE 38, CLAUSE 2404

-

Deemed To Be Deleted

1996  P. A. S. C.  ACCOUNTING PROCEDURE

101.

Accounting Procedure Chosen:

(a)

Alternate

   A    

immediately below shall apply as a schedule to this Appendix:

ALTERNATE A

The Accounting Procedure is the 1996 Petroleum Accountants Society of Canada’s Accounting Procedure and has been modified only as shown in Clause 102 (b) hereof. The elections chosen and values inserted are described in Clause 102 (a) hereof.

ALTERNATE B.

The Accounting Procedure is unique to this Agreement and is attached hereto as Schedule A.

102.

Rates, Elections and Modifications to the 1996 PASC Accounting Procedure

 

Page 8 of 14

(a)

The following clauses of the Accounting Procedure are modified to include the indicated election, alternate, option or value:

105.

Operating Fund:

10%

110.

Approvals:  Clause _________ of the Agreement;

Two (2) or more Owners having interests totalling seventy-five percent (75) or more

112.

Expenditure Limitations:

(a)

any single undertaking:  not in excess of Fifty Thousand dollars ($50,000)

(c)

settlement of each damage claim:  not in excess of Ten Thousand dollars ($10,000)

202.

Employee Benefits:

(b)

not to exceed twenty-five percent (25%)

213.

Camp and Housing:

(b)

cost of housing On-Site employees shall _____/shall not       X       be chargeable

216.

Warehouse Handling:

Warehouse handling fee of five percent (5%) of the Cost of Material

221.

Allocation Options:

The following fixed or percentage allocations shall ______/ shall not    X     be used in lieu of actual cost allocations:

  
						
	CLAUSE

	COST

	OPTIONS FOR CHARGING JOINT ACCOUNT

	 	 	Fixed $/Month

	 	 	Subject to Adjustment cited in Clause 302(e)

	Not subject to adjustment cited in Clause 302(e)

	Percentage of Direct Cost

	Other (Specify)

(well/mcf/bbl)

	 	 	 	 	 	 
	204

	Automotive

	 	 	 	 
	207(c)

	Production Office

	 	 	 	 
	212

	Communications

	 	 	 	 
	213(a)

	Camp

	 	 	 	 
	214

	Measurement & Controls

	 	 	 	 
	 	 	 	 	 	 

  

 

 

Page 9 of 14

302.

Overhead Rates:

(a)

For Each Exploration Project:

Five percent (5%) of Cost;

(b)

For the Drilling of a Well:

(1)

Three percent (3%) of the first Fifty Thousand dollars ($50,000) of Cost plus;

(2)

Two percent (2%) of the next One Hundred Thousand dollars ($100,000) of Cost, plus;

(3)

One percent (1%) of the Cost exceeding the sum of (1) and (2).

(c)

For Initial Construction:

(1)

Five percent (5%) of the first Fifty Thousand dollars ($50,000) of Cost plus;

(2)

Three percent (3%) of the next One Hundred Thousand dollars ($100,000) of Cost, plus;

(3)

One percent (1%) of the Cost exceeding the sum of (1) and (2).

(d)

For each subsequent Construction Project:

(1)

Five percent (5%) of the first Fifty Thousand dollars ($50,000) of Cost plus;

(2)

Three percent (3%) of the next One Hundred Thousand dollars ($100,000) of Cost, plus;

(3)

One percent (1%) of the Cost exceeding the sum of (1) and (2).

(e)

For Operations and Maintenance:

(1)

 ____ of Cost; and/or

(2)

______ for Producing Well per month; or

(3)

a flat rate of two Hundred and twenty-five dollars ($225.00) per month.

The rates in Subclauses 302(e)(2) or 302(e)(3) shall ________/shall not    X    be adjusted annually.

406.

Dispositions:

Twenty Thousand dollars ($20,000.)

 

Page 10 of 14

SCHEDULE  “D”

Attached to and forming part of an Agreement dated February 6, 2006

between Premium Petroleum Inc. as Farmor and Micron Enviro Systems Inc. as Farmee

“Assignment Procedure”

Page 11 of 14

SCHEDULE  “E”

Attached to and forming part of an Agreement dated February 6, 2006

between Premium Petroleum Inc. as Farmor and Micron Enviro Systems Inc. as Farmee

Well Requirement Sheet

  
		
	PRIOR TO DRILLING

	Copies Required

	Survey Plat

	1

	Licence Application & Well Licence

	1

	Drilling and Geological Program

	1

	Directional Plan and Plat (if applicable)

	1

	24 hr Spud Notice

	Yes

	DURING DRILLING & COMPLETION E-mail daily to: 

	Geological Cuttings Samples and Drill Core

	Access

	Immediate Advice of Oil/Gas Shows

	Yes

	24 hr Notice of Intent to Core/Log/Test

	Yes

	Prelim. Core/Fluid Analysis/Gas

	1

	Field Prints of Logs

	1

	24 hr Abandonment or Casing Notice

	Yes

	Daily Drilling/Completion and Geology Reports (+ mud log if available)

	 
	AFTER DRILLING (1 COPY)

	ON COMPLETION (1 COPY)

	Final Log Prints  

	Written Notice to Commence

	Digital Log Data on CD Rom from vendor

	Completion Program

	E-mail to: 

	 
	Final Core/Fluid Analysis/Gas

	Daily Fax or Phone Report

	DST Reports/Charts

	Cased hole/Prod. Logs

	Geol. Report & Mud Log with CD Rom (.exp/.pdf/.slg/.mlg)

	24 hr Notice to Plug Back

	Final Directional Survey  (digital copy)

	Government Completion Forms

  

 

Page 12 of 14

SCHEDULE  “F”

Attached to and forming part of an Agreement dated February 6, 2006

between Premium Petroleum Inc. as Farmor and Micron Enviro Systems Inc. as Farmee.

Area of Mutual Interest (AMI)

See attached map.

 

Page 13 of 14CC Filed by Filing Services Canada Inc. 403-717-3898

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (“Agreement”) is made and entered into in duplicate effective this 8th day of March, 2006 (“Effective Date”), by and among MICRON ENVIRO SYSTEMS, INC., a Nevada corporation of Suite 1205, 789 West Pender Street, Vancouver, British Columbia, Canada, V6C 1H2 (“Corporation”), and Omar Halloum, of PO Box 47604, Doha, Qatar (“Consultant”).

1.  Term of Agreement.  The respective duties and obligations of the parties shall commence on the Effective Date and shall continue for a period of twelve (12) months or until terminated by either of the parties as specified below.  In the event either party to this Agreement desires to terminate this Agreement prior to expiration of that twelve (12) month period, that party shall provide to the other party notice of that party’s intention to so terminate this Agreement, and which notice shall specify the date of termination of this Agreement; provided, however, that such date of termination shall not be sooner than seven (7) days after the date that such notice is given to such other party.

            2.  Consultations.  The Consultant shall make itself available to consult with the directors and the officers of the Corporation, at reasonable times, concerning any issue of importance regarding certain opportunities available to the Corporation and other relevant matters relating to the business of the Corporation. Specifically, it is anticipated that the Consultant shall (i) assist the directors and officers of the Corporation in connection with various delegated matters; and (ii) shall consult with the directors and officers of the Corporation regarding listing the Corporation on various exchanges in the Middle East (the “Services”).

 

3.  Compensation.  In consideration and compensation for the provision of the Services, the Corporation will grant two million (2,000,000) non-qualified stock options at a price of $0.20 per share, vesting immediately and expiring on March 7, 2007.  

 

4.  Management Power of the Consultant.  The business affairs of the Corporation and the operation of business of the Corporation shall be conducted by the officers, administrative staff and employees of the Corporation. It is not the intention of the Corporation to grant or delegate to the Consultant, and the Corporation does not hereby grant or delegate to the Consultant any power of direction, management, supervision and control of the administrative staff or other employees of the Corporation. 

5.  Consultant to Act as Agent.  From time to time, the Corporation may deem it advisable to enter into agreements with various persons.  Regarding those agreements, the Consultant shall be, and hereby is, designated as an agent of the Corporation for the purpose of negotiating the terms and conditions of those agreements.  The Consultant, however, shall not obligate the Corporation to any such agreement without first obtaining the approval of the terms and conditions of any such agreement from the Board of Directors of the Corporation.  

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6.  Confidential Information and Trade Secrets.

a.

In the course of the discharge of the Consultant’s duties to the Corporation, as a result of Consultant’s relationship with the Corporation, the Consultant shall have access to, and become acquainted with, information concerning the business of the Corporation, including, but not necessarily limited to, financial, personnel, credit, sales, planning and other information which is owned by the Corporation and used regularly in the operation of the business of the Corporation, and this information constitutes trade secrets of the Corporation.

b.

During the term of this Agreement and at all times thereafter, the Consultant shall not disclose any such trade secrets, directly or indirectly, to any other person or use those secrets in any way, except as is required to carry out, perform and effectuate the services contemplated by the provisions of this Agreement.

c.

The sale or unauthorized use or disclosure of any of the Corporation’s trade secrets obtained by the Consultant during the Consultant’s relationship with the Corporation, including information concerning the Corporation’s current or any future or proposed transactions, services, or products, the facts that any such transactions, services, or products are planned, being considered or in process, as well as any descriptions thereof, constitute unfair competition. The Consultant shall not engage in any unfair competition with the Corporation, either during the term of this Agreement or at any time thereafter.

d.

All files, discs, documents, writings, records, drawings, specifications, equipment and similar items relating to the business of the Corporation are, and shall remain, exclusively the property of Client.

7.  Ownership of Books, Records, and Papers.

a.

All records of the accounts of customers, debtors, service providers, suppliers, distributors, clients, and any other records and books relating in any manner whatsoever to the conduct of the Corporation’s business during the term of this Agreement, whether prepared by the Consultant or otherwise coming into the Consultant’s possession, shall be the exclusive property of the Corporation.

b.

All such books and records shall be returned immediately to the Corporation by  the Consultant on any termination of this Agreement.

8.  Registration Status of Consultant.  The Consultant is not engaged in the business of effecting transactions in securities for the accounts of others. The Consultant is not registered with any agency as a broker-dealer, investment advisor or investment manager, and, as a result, is precluded by law from providing to the Corporation services which would be considered to be those of a broker-dealer, investment advisor or investment manager in connection with the placement, offer or sale of securities of the Corporation. None of the services to be provided by the Consultant pursuant to the provisions of this Agreement are intended to be or shall be construed as offering or selling securities, or providing investment, legal or tax advice.  

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9.  Services of Consultant Not Exclusive.  The Consultant may represent, perform services for, and be employed by, any additional persons as the Consultant, in the Consultant’s sole and absolute discretion, determines to be necessary or appropriate.

10.  Relationship Created.  The Consultant is not an employee of the Corporation for

any purpose whatsoever, but the Consultant is an independent contractor.  The Corporation is interested only in the results obtained by the Consultant, who shall have the sole and exclusive control of the manner and means of performing pursuant to this Agreement.  The Corporation shall not have the right to require the Consultant to collect accounts, investigate customer or shareholder complaints, attend meetings, periodically report to the Corporation, follow prescribed itineraries, keep records of business transacted, make adjustments, conform to particular policies of the Corporation, or do anything else which would jeopardize the relationship of independent contractor among the Corporation and the Consultant. All expenses and disbursements, including, but not limited to, those for travel and maintenance, entertainment, office, clerical and general administrative expenses, that may be incurred by the Consultant in connection with this Agreement shall be borne and paid wholly and completely by the Consultant, and the Corporation shall not be in any way responsible or liable therefor. 

11.  Indemnification.  Each party shall save the other party harmless from and against 

and shall indemnify the other party for any liability, loss, costs, expenses, or damages however caused by reason of any injury (whether to body, property, or personal or business character or reputation) sustained by any person or to any person or to property by reason of any act, neglect, default, or omission of such party or any of such party’s agents, employees, or other representatives, and, such party shall pay any and all amounts to be paid or discharged in case of an action or any such liability less costs, expenses, or damages.  If either party is sued in any court for damages by reason of any of the acts of the other party referred to in this paragraph, such other party shall defend said action (or cause same to be defended) at such other party’s own expense and shall pay and discharge any judgment that may be rendered in any such action; if such other party fails or neglects to so defend in said action, the party sued may defend the same and any expenses, including reasonable attorneys’ fees, which such party may pay or incur in defending said action and the amount of any judgment which such party may be required to pay as a result of said action shall be promptly reimbursed upon demand. The indemnification specified by the provisions of this section shall survive the termination of this Agreement.

12.  Governmental Rules and Regulations.  The provisions of this Agreement and the 

relationship contemplated by the provisions of this Agreement are subject to any and all present and future orders, rules and regulations of any duly constituted authority having jurisdiction of that relationship.

13.  Entire Agreement.  This Agreement is the written expression and the complete and exclusive statement of all the agreements, conditions, promises, representations, warranties and covenants between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all prior or contemporaneous agreements, negotiations, representations, warranties, covenants, understandings and discussions by and between and among the parties, their respective representatives, and any other person, with respect to the subject matter specified in this Agreement.  This Agreement is subject to review by both parties legal counsel and is subject to 

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ratification by the Corporation’s board of directors.

14.  Number and Gender.  Whenever the singular number is used in this Agreement, and when required by the context, the same shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders, and vice versa; and the word "person" shall include corporation, firm, trust, estate, joint venture, governmental agency, sole proprietorship, political subdivision, company, congregation, organization, fraternal order, club, league, society, municipality, association, joint stock company, partnership or other form of entity.

15.  Execution in Counterparts.  This Agreement may be prepared in multiple copies and forwarded to each of the parties for execution.  All of the signatures of the parties may be affixed to one copy or to separate copies of this Agreement and when all such copies are received and signed by all the parties, those copies shall constitute one agreement which is not otherwise separable or divisible.

16.  Assignability.  Neither party shall sell, assign, transfer, convey or encumber this Agreement or any right or interest in this Agreement or pursuant to this Agreement, or suffer or permit any such sale, assignment, transfer or encumbrance to occur by operation of law without the prior written consent of the other party.  In the event of any sale, assignment, transfer or encumbrance consented to by such other party, the transferee or such transferee's legal representative shall agree with such other party in writing to assume personally, perform and be obligated by, the covenants, obligations, warranties, representations, terms, conditions and provisions specified in this Agreement.

17.  Severability.  In the event any part of this Agreement or the subject matter of this Agreement, for any reason, is determined by a court of competent jurisdiction to be invalid, such determination shall not affect the validity of any remaining portion or subject matter of this Agreement, which remaining portion or subject matter shall remain in full force and effect as if this Agreement had been executed with the invalid portion or subject matter thereof eliminated.  It is hereby declared the intention of the parties that they would have executed the remaining portion or subject matter of this Agreement without including any such part, parts, portion or subject matter which, for any reasons, may be hereafter determined to be invalid.  

18.  Captions and Interpretations.  Captions of the sections of this Agreement are for convenience and reference only, and the works specified therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction, or meaning of the provisions of this Agreement.  The language in all parts to this Agreement, in all cases, shall be construed in accordance with the fair meaning of that language as if prepared by all parties and not strictly for or against any party.  Each party and counsel for such party have reviewed this Agreement.  The rule of construction which requires a court to resolve any ambiguities against the drafting party shall not apply in interpreting the provisions of this Agreement.

19.  Modification.  No modification, supplement or amendment of this Agreement or of any covenant, representation, warranty, condition, or limitation specified in this Agreement shall be valid unless the same is made in writing and duly executed by both parties.  

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20.  Further Assurances.  The parties shall from time to time sign and deliver any additional instruments and take any additional actions as may be necessary to effectuate the intent and purposes of this Agreement.

21.  Successors and Assigns.  This Agreement and each of its provisions shall obligate the heirs, executors, administrators, successors, and assigns of each of the parties.  Nothing specified in this section, however, shall be a consent to the assignment or delegation by any party of such party's respective rights and obligations created by the provisions of this Agreement.

22.  Survival of Representations and Warranties.  All representations and warranties made by each party to this Agreement shall be deemed made for the purpose of inducing the other party to enter into and execute this Agreement.  The representations and warranties specified in this Agreement shall survive the termination of this Agreement and shall survive any investigation by either party whether before or after the execution of this Agreement.  

23.  Concurrent Remedies.  No right or remedy specified in this Agreement conferred on or reserved to the parties is exclusive of any other right or remedy specified in this Agreement or by law or equity provided or permitted; but each such right and remedy shall be cumulative of, and in addition to, every other right and remedy specified in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from time to time.  The termination of this Agreement for any reason whatsoever shall not prejudice any right or remedy which any party may have, either at law, in equity, or pursuant to the provisions of this Agreement.

24.  Governing Law. This Agreement shall be deemed to have been entered into in the City of Vancouver, Province of British Columbia, and all questions concerning the validity, interpretation, or performance of any of the terms, conditions and provisions of this Agreement or of any of the rights or obligations of the parties shall be governed by, and resolved in accordance with, the laws of the Province of British Columbia, without regard to conflicts of law principles.  Any and all actions or proceedings, at law or in equity, to enforce or interpret the provisions of this Agreement shall be litigated in courts having situs within the City of Vancouver, Province of British Columbia.  No claim, demand, action, proceeding, litigation, hearing, motion or lawsuit resulting from or with respect to this Agreement shall be commenced or prosecuted in any jurisdiction other than the Province of British Columbia, and any judgment, determination, finding or conclusion reached or rendered in any other jurisdiction shall be null and void.  Each party hereby consents expressly to the jurisdiction of any court located within the Province of British Columbia and consents that any service of process in such action or proceeding may be made by personal service upon such party wherever such party may be then located, or by certified or registered mail directed to such party at such party's last known address.

25.  Consent to Agreement.  By executing this Agreement, each party, for itself represents such party has read or caused to be read this Agreement in all particulars, and consents to the 

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rights, conditions, duties and responsibilities imposed upon such party as specified in this Agreement.  Each party represents, warrants and covenants that such party executes and delivers this Agreement of its own free will and with no threat, undue influence, menace, coercion or duress, whether economic or physical.  Moreover, each party represents, warrants, and covenants that such party executes this Agreement acting on such party's own independent judgment.  

MICRON ENVIRO SYSTEMS, INC.,

CONSULTANT

a Nevada corporation

Per:

/s/ Bernard McDougall

/s/ Omar Halloum

_________________

______________

Authorized Signatory

Omar Halloum

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