Document:

EXHIBIT
10.14

 

VERITY
CORP. GUARANTY-WATER

 

THIS
VERITY CORP. GUARANTY-WATER is dated as of May 16, 2014, and made by Verity Corp., a Nevada corporation, of 47184 258th
St., Sioux Falls, SD 57107 (“Guarantor”) in favor of Duane Spader, of 1100 E. 64th St. North,
Sioux Falls, SD 57104 (“Lender”).

 

R
E C I T A L S

 

WHEREAS,
Verity Water, LLC (herein, “Borrower”) has executed a promissory note in favor of Lender (as amended,
supplemented or otherwise modified from time to time, the “Note”; the capitalized terms defined therein
and not otherwise defined herein being used herein as therein defined). This Note memorializes Borrower’s obligation for
prior advances to Borrower by Lender and amends the terms and conditions thereof.

 

WHEREAS,
in partial consideration of Lender agreeing to an amendment to the terms and conditions of its prior advances to Borrower and
to the Change in Terms Agreement between Lender and Borrower’s first-tier parent corporation, Verity Farms, L.L.C., the
Guarantor is entering into this Agreement to guarantee Borrower’s obligations under the Note.

 

WHEREAS,
Guarantor, as third-tier parent corporation of Borrower, has and will derive substantial direct and indirect benefits from the
prior advances that are memorialized by the Note and the amendment of the terms and conditions thereof.

 

WHEREAS,
it is a condition precedent to Lender’s obligations under the Change in Terms Agreement to be entered into by Lender and
Borrower’s first-tier parent corporation, Verity Farms, L.L.C. as of the date hereof, that Guarantor shall have executed
and delivered this Guaranty to Lender; and

 

WHEREAS,
Guarantor acknowledges and agrees that Lender advanced funds to Borrower as start-up funding until funds could be raised by Borrower
or its affiliates through sales of equity interests or borrowings from other sources, with the intention that amounts advanced
by Lender to Borrower, as memorialized by the Note, and otherwise would be promptly repaid to Lender as other sources of funding
become available.

 

NOW,
THEREFORE, in consideration of the premises and in order to induce the Lender to enter into the Change in Terms Agreement, Guarantor
hereby agrees as follows:

 

    	 

    	 

    

 

Section
1. Guaranty; Limitation of Liability.

 

(a)
Guarantor hereby absolutely, unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled maturity
or on any date of a required prepayment or by acceleration, demand or otherwise, of all obligations, indebtedness and liabilities
of the Borrower on or for the Note, now or hereafter existing (including, without limitation, any extensions, modifications, substitutions,
amendments or renewals of any or all of the foregoing obligations), whether direct or indirect, absolute or contingent, and whether
for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations
being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including, without limitation,
reasonable fees and expenses of counsel) incurred by the Lender in enforcing any rights under this Guaranty or the Note. Without
limiting the generality of the foregoing, Guarantor’s liability shall extend to all amounts that constitute part of the
Guaranteed Obligations and would be owed by the Borrower to Lender under or in respect of the Note but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Borrower.
Notwithstanding the terms of the Note or any related document, as concerns the obligations of Guarantor hereunder with respect
to the Guaranteed Obligations, prepayment of the Guaranteed Obligations shall be required by Guarantor hereunder each time (to
be paid within ten (10) days thereafter) Guarantor or any Affiliate thereof raises, from time to time, funds through the sales
of equity interests in Guarantor or its Affiliates or obtains funds by borrowing from other sources; provided that (i) this prepayment
requirement shall only apply to funds received by Guarantor or any Affiliate thereof after September 30, 2015, and then, after
such date, only to sales of equity interests or borrowings from other sources if the total funds generated thereby from and after
October 1, 2015, exceed Five Hundred Thousand Dollars ($500,000.00), and (ii) the total amount of any such prepayment required
at a particular time by Guarantor hereunder, together with any prepayment then due under similar prepayment provisions included
in other guarantees executed by Guarantor or its Affiliates in favor of Lender, is limited to fifty percent (50%) of the amount
of funds then raised by such sale of equity interests or borrowings.

 

(b)
Guarantor, and by its acceptance of this Guaranty, the Lender, hereby confirms that it is the intention of all such Persons that
this Guaranty and the obligations of Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy
Law (as hereinafter defined), the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign,
federal or state law to the extent applicable to this Guaranty and the obligations of Guarantor hereunder. To effectuate the foregoing
intention, the Lender and the Guarantor hereby irrevocably agree that the obligations of Guarantor under this Guaranty at any
time shall be limited to the maximum amount as will result in the obligations of Guarantor under this Guaranty not constituting
a fraudulent transfer or conveyance. For purposes hereof, “Bankruptcy Law” means Title 11, U.S. Code,
or any similar foreign, federal or state law for the relief of debtors.

 

Section
2. Guaranty Absolute. Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with the
terms of the Note, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of
such terms or the rights of Lender with respect thereto. The obligations of Guarantor under or in respect of this Guaranty are
independent of the Guaranteed Obligations or any other obligations of the Borrower under the Note, and a separate action or actions
may be brought and prosecuted against Guarantor to enforce this Guaranty, irrespective of whether any action is brought against
Borrower or whether Borrower is joined in any such action or actions. The liability of Guarantor under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and Guarantor hereby irrevocably waives any defenses it may now have
or hereafter acquire in any way relating to, any or all of the following:

 

    	- 2 -

    	 

    

 

(a)
any lack of validity or enforceability of the Note or any agreement or instrument relating thereto;

 

(b)
any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any
other obligations of the Borrower with respect to the Note, or any other amendment or waiver of or any consent to departure from
the Note, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional
credit to any Borrower or any of its affiliates or otherwise;

 

(c)
any taking, exchange, release or non-perfection of any Collateral or any other collateral, or any taking, release or amendment
or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations;

 

(d)
any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations,
or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations
or any other obligations of Borrower or any other party liable for the obligations under the Note or any other assets of any such
party or any of its affiliates;

 

(e)
any change, restructuring or termination of the corporate structure or existence of Borrower or any of its affiliates;

 

(f)
any failure of Lender to disclose to Borrower any information relating to the business, condition (financial or otherwise), operations,
performance, properties or prospects of any other party obligated on or for the Note, now or hereafter known to Lender (Guarantor
waiving any duty on the part of the Lender to disclose such information);

 

(g)
the failure of any other Person to execute or deliver this Guaranty or any other guaranty or agreement or the release or reduction
of liability of Guarantor or other guarantor or surety with respect to the Guaranteed Obligations; or

 

(h)
any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation
by Lender that might otherwise constitute a defense available to, or a discharge of, Borrower or any other guarantor or surety.

 

This
Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by Lender or any other Person upon the insolvency, bankruptcy or reorganization
of Borrower or any other party obliged on or for the Note or otherwise, all as though such payment had not been made.

 

Section
3. Waivers and Acknowledgments.

 

(a)
Guarantor hereby unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for performance,
notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that Lender protect, secure, perfect or insure any lien or any property subject
thereto or exhaust any right or take any action against any party obligated on or for the Note or any other Person or any Collateral.

 

    	- 3 -

    	 

    

 

(b)
Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty
is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future.

 

(c)
Guarantor hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense based upon an
election of remedies by Lender that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement,
exoneration, contribution or indemnification rights of Guarantor or other rights of Guarantor to proceed against any of the other
party on or for the Note, any other guarantor or any other Person or any Collateral and (ii) any defense based on any right of
set-off or counterclaim against or in respect of the obligations of Guarantor hereunder.

 

(d)
Guarantor hereby unconditionally and irrevocably waives any duty on the part of Lender to disclose to Guarantor any matter, fact
or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of Borrower
or any of its affiliates or any other party obligated under the Note, now or hereafter known by Lender.

 

(e)
Guarantor acknowledges that it has and will receive substantial direct and indirect benefits from the financing arrangements contemplated
by the Note and the amendment to the terms and conditions of the prior advances, the Change in Terms Agreement between Lender
and Verity Farms, L.L.C., and that the waivers set forth in Section 2 and this Section 3 are knowingly made in contemplation of
such benefits.

 

Section
4. Subrogation. Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have
or hereafter acquire against Borrower, any other party obligated on or for the Note or any other insider guarantor that arise
from the existence, payment, performance or enforcement of Guarantor’s Guaranteed Obligations under or in respect of this
Guaranty or the Note, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification
and any right to participate in any claim or remedy of Lender against Borrower, any other party obligated on or for the Note or
any other insider guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract,
statute or common law, including, without limitation, the right to take or receive from Borrower, any other party obligated on
or for the Note or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed Obligations and
all other amounts payable under this Guaranty shall have been paid in full in cash. If any amount shall be paid to Guarantor in
violation of the immediately preceding sentence at any time prior to the payment in full in cash of the Guaranteed Obligations
and all other amounts payable under this Guaranty, such amount shall be received and held in trust for the benefit of Lender,
shall be segregated from other property and funds of Guarantor and shall forthwith be paid or delivered to Lender in the same
form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and
all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Note, or to be
held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If (i) Guarantor
shall make payment to Lender of all or any part of the Guaranteed Obligations and (ii) all of the Guaranteed Obligations and all
other amounts payable under this Guaranty shall have been paid in full in cash, Lender will, at Guarantor’s request and
expense, execute and deliver to Guarantor appropriate documents, without recourse and without representation or warranty, necessary
to evidence the transfer by subrogation to Guarantor of an interest in the Guaranteed Obligations resulting from such payment
made by Guarantor pursuant to this Guaranty.

 

    	- 4 -

    	 

    

 

Section
5. Representations and Warranties. Guarantor hereby makes each representation and warranty made in the Note by Borrower
with respect to Guarantor and Guarantor hereby further represents and warrants as follows:

 

(a)
There are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived.

 

(b)
Guarantor has, independently and without reliance upon Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Guaranty and each other related document to which it is or is to
be a party, and Guarantor has established adequate means of obtaining from each other party obliged on or for the Note on a continuing
basis information pertaining to, and is now and on a continuing basis will be completely familiar with, the business, condition
(financial or otherwise), operations, performance, properties and prospects of such other party obligated on or for the Note.

 

(c)
The value of the consideration received and to be received by Guarantor as a result of Lender making extensions of credit to Borrower
and Guarantor executing and delivering this Guaranty is reasonably worth at least as much as the liability and obligation of Guarantor
hereunder, and such liability and obligation have benefited and may reasonably be expected to benefit Guarantor directly or indirectly.

 

Section
6. Covenants. Guarantor covenants and agrees that, so long as any part of the Guaranteed Obligations shall remain unpaid,
Guarantor will perform and observe, and cause each of its affiliates to perform and observe, all of the terms, covenants and agreements
set forth in the Note and related documents on its or their part to be performed or observed or that Borrower has agreed to cause
Guarantor or such affiliates to perform or observe.

 

Section
7. Amendments. No amendment or waiver of any provision of this Guaranty and no consent to any departure by Guarantor therefrom
shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.

 

Section
8. Notices. All notices and other communications provided for hereunder shall be given in writing, by certified mail, postage
prepaid, delivered to the addresses set forth above. The failure of a party to accept delivery of or claim certified mail constitutes
delivery on the second business day following the first delivery attempt. Delivery by telecopier of an executed counterpart of
a signature page to any amendment or waiver of any provision of this Guaranty to be executed and delivered hereunder shall be
effective as delivery of an original executed counterpart thereof.

 

    	- 5 -

    	 

    

 

Section
9. No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law.

 

Section
10. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, Lender and each of its affiliates
is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all
indebtedness at any time owing by Lender or such affiliate to or for the credit or the account of Guarantor against any and all
of the obligations of Guarantor now or hereafter existing hereunder, irrespective of whether Lender shall have made any demand
under this Guaranty or the Note and although such obligations may be unmatured. Lender agrees promptly to notify Guarantor after
any such set-off and application; provided, however, that the failure to give such notice shall not affect the validity
of such set-off and application. The rights of Lender and its affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that Lender and its affiliates may have.

 

Section
11. Indemnification.

 

Without
limitation on any other obligations of Guarantor or remedies of the Lender under this Guaranty, Guarantor shall, to the fullest
extent permitted by law, indemnify, defend and save and hold harmless Lender and its affiliates and their respective officers,
directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall
pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and
expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party in connection with or as a result
of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of Guarantor enforceable Guarantor
in accordance with their terms.

 

Guarantor
hereby also agrees that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract, tort
or otherwise) to Guarantor or any of its affiliates or any of their respective officers, directors, employees, agents and advisors,
and Guarantor hereby agrees not to assert any claim against any Indemnified Party on any theory of liability, for special, indirect,
consequential or punitive damages arising out of or otherwise relating to the Note or the advance of loan proceeds thereunder.

 

Without
prejudice to the survival of any of the other agreements of Guarantor under this Guaranty, the Note or any document related thereto,
the agreements and obligations of Guarantor contained in Section 1(a) (with respect to enforcement expenses), the last sentence
of Section 2 and all of this Section 11 shall survive the payment in full of the Guaranteed Obligations and all of the other amounts
payable under this Guaranty.

 

    	- 6 -

    	 

    

 

Section
12. Subordination. Guarantor hereby subordinates any and all debts, liabilities and other obligations owed to Guarantor
by any of its affiliates (the “Subordinated Obligations”) to the Guaranteed Obligations to the extent
and in the manner hereinafter set forth.

 

Section
13. Prohibited Payments, Etc. Except during the continuance of an Event of Default (including the commencement and continuation
of any proceeding under any Bankruptcy Law relating to any other party obligated on or for the Note), Guarantor may receive regularly
scheduled payments from any other party obligated on or for the Note on account of the Subordinated Obligations. After the occurrence
and during the continuance of any Event of Default (including the commencement and continuation of any proceeding under any Bankruptcy
Law relating to any other party obligated on or for the Note), however, unless the Lender otherwise agrees, Guarantor shall not
demand, accept or take any action to collect any payment on account of the Subordinated Obligations.

 

Section
14. Prior Payment of Guaranteed Obligations. In any proceeding under any Bankruptcy Law relating to any other party obligated
on or for the Note, Guarantor agrees that the Lender shall be entitled to receive payment in full in cash of all Guaranteed Obligations
(including all interest and expenses accruing after the commencement of a proceeding under any Bankruptcy Law, whether or not
constituting an allowed claim in such proceeding (“Post Petition Interest”)) before Guarantor receives
payment of any Subordinated Obligations.

 

Section
15. Turn-Over. After the occurrence and during the continuance of any Event of Default (including the commencement and
continuation of any proceeding under any Bankruptcy Law relating to any other party obligated on or for the Note), Guarantor shall,
if the Lender so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the
Lender and deliver such payments to the Lender on account of the Guaranteed Obligations (including all Post Petition Interest),
together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the
liability of Guarantor under the other provisions of this Guaranty.

 

Section
16. Authorization. After the occurrence and during the continuance of any Event of Default (including the commencement
and continuation of any proceeding under any Bankruptcy Law relating to any other party obligated on or for the Note), the Lender
is authorized and empowered (but without any obligation to so do), in its discretion, (i) in the name of Guarantor, to collect
and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed
Obligations (including any and all Post Petition Interest), and (ii) to require Guarantor (A) to collect and enforce, and to submit
claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Lender for application
to the Guaranteed Obligations (including any and all Post Petition Interest).

 

Section
17. Continuing Guaranty; Assignments under the Credit Agreement. This Guaranty is a continuing guaranty and shall (a) remain
in full force and effect until the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this
Guaranty, be binding upon the Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable by the
Lender and its successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding
sentence, Lender may assign or otherwise transfer all or any portion of its rights and obligations under the Note to any other
Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to Lender herein
or otherwise. No Guarantor shall have the right to assign its rights hereunder or any interest herein without the prior written
consent of the Lender.

 

    	- 7 -

    	 

    

 

Section
18. Execution in Counterparts. This Guaranty and each amendment, waiver and consent with respect hereto may be executed
in any number of counterparts and by different parties thereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Guaranty by telecopier shall be effective as delivery of an original executed counterpart
of this Guaranty.

 

Section
19. Governing Law; Jurisdiction. This Guaranty shall be governed by, and construed in accordance with, the laws of the
State of South Dakota.

 

Guarantor
hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any South Dakota
state court sitting in Minnehaha County, South Dakota, and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Guaranty or any of the other Loan Documents to which it is or is to be a party, or for recognition
or enforcement of any judgment, and Guarantor hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such South Dakota state court. Guarantor agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. Nothing in this Guaranty or any the Note or any related document shall affect any right that
any party may otherwise have to bring any action or proceeding relating to this Guaranty, the Note or any related document in
the courts of any jurisdiction.

 

Guarantor
irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty, the
Note or any related document, to which it is or is to be a party in any South Dakota state court. Guarantor hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such suit, action or
proceeding in any such court.

 

IN
WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed and delivered by its officer thereunto duly authorized
as of the date first above written.

 

	 	Verity Corp.
	 	 	 
	 	By:	/s/ RICHARD KAMOLVATHIN
	 	Its:	 

 

    	- 8 -Exhibit 10.1

 

NON-EXCLUSIVE
SALES, DISTRIBUTION, MANUFACTURING AND LICENSE AGREEMENT

 

This
Non-exclusive Sales, Distribution, Manufacturing and License Agreement (“Agreement”) is made and entered into
this 21 day of May, 2014 (the “Effective Date”), by and between Petrosonic Energy, Inc., a Nevada corporation
(“Licensor”), and Kuai Le GU, LLC, a Delaware limited liability company (“Licensee”). Licensor
and Licensee sometimes hereinafter referred to as the “parties.”

 

WITNESSETH

 

WHEREAS,
Licensor owns or has licensed rights (with the right to grant sublicenses) in the Patent Rights (as defined below) and Know-How
(as defined below); and

 

WHEREAS,
Licensee desires to obtain an non-exclusive license from Licensor in and under the Patent Rights and Know-How; and

 

WHEREAS,
Licensor is willing to grant such a license to Licensee upon the terms and conditions set forth below; and

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties agre as follows:

 

Article
1 - DEFINITIONS

 

For
the purposes of this Agreement, the following words and phrases shall have the following meanings:

 

1.1 “Affiliates”
of an entity means any other entity which (directly or indirectly) is controlled by, controls or is under common control with
such entity. For the purposes of this definition, the term “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) as used with respect to an entity means (i) in the case
of a corporate entity, direct or indirect ownership of voting securities entitled to cast at least fifty percent (50%) of the
votes in the election of directors or (ii) in the case of a non-corporate entity, direct or indirect ownership of at least fifty
percent (50%) of the equity interests with the power to direct the management and policies of such entity.

 

1.2 “Calendar
Quarter” means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September
30 and December 31.

 

1.3 “Calendar
Year” means each successive period of twelve (12) months commencing on January 1 and ending on December 31.

 

1.4 “Developments”
means inventions, patents and patent rights not included in the Patent Rights that are conceived, discovered, invented, developed,
created, made or reduced to practice by Licensor during the Term. For the avoidance of doubt, the term Developments does not include
inventions, patents and Patent Rights obtained by Licensor from any third party.

 

1.5 “Environmental
Claim” shall mean, with respect to any person or entity, any notice; claim; administrative, regulatory or judicial action,
suit, judgment or demand; or other written communication applicable to the Technology (as defined below) by any other person or
entity (including, without limitation, any government authority) alleging or asserting such person’s or entity’s liability
for investigatory costs, cleanup costs, governmental response costs, damages to natural resources or other property of such person
or entity, personal injuries or death, losses, fines or penalties arising out of, based on or resulting from (a) the presence,
Use (as defined below), Release (as defined below) or threatened Release into the environment of any Hazardous Material (as defined
below) at any location, whether or not owned by such person or entity, or (b) any fact, circumstance, condition or occurrence
forming the basis of any violation or alleged violation of any Environmental Law (as defined below).

 

    	 

    	 

    

 

1.6 “Environmental
Laws” shall mean any and all Laws (as defined below) applicable to the Project relating to the indoor or outdoor environment,
or to the health or safety of natural persons affected by the environment, or to the Release or threatened Release of Hazardous
Materials into the indoor or outdoor environment, including, without limitation, ambient air, soil, surface water, groundwater,
sea water, wetlands, land or subsurface strata, or otherwise relating to the Use of Hazardous Materials, whether now or hereafter
in effect.

 

1.7 “Field”
means the treatment and upgrading of heavy oil.

 

1.8 “GAAP”
means United States generally accepted accounting principles applied on a consistent basis. Unless otherwise defined or stated
herein, financial terms will be calculated using GAAP.

 

1.9 “Hazardous
Material” shall mean any of the following: any chemicals, materials, substances or wastes that are now or hereafter
become (a) defined or listed as, or included in the definition of, “hazardous substances,” “hazardous wastes,”
“hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic
substances,” “toxic pollutants,” “contaminants,” “pollutants” or terms of similar import
under any Environmental Law, and (b) prohibited, limited or regulated under any Environmental Law.

 

1.10 “Know-How”
means all compositions of matter, techniques and data and other know-how and technical information including inventions (whether
or not patentable), improvements and developments, practices, methods, concepts, trade secrets, documents, computer data, computer
code, apparatus, regulatory strategies, test data, analytical and quality control data, formulation, manufacturing, patent data
or descriptions, development information, drawings, specifications, designs, plans, proposals and technical data and manuals and
all other proprietary information that is owned or controlled by Licensor as of the Effective Date that relates to the Technology
or to any of the subject matter described in or claimed by the Patent Rights and is relevant to the Field.

 

1.11 “Laws”
shall mean any statute, law, regulation, ordinance, rule, judgment, order, decree, permit, concession, grant, franchise, license,
agreement, directive, guideline, policy or rule of common law, or any governmental requirement or other governmental restriction
or similar form of decision or determination, or any interpretation or administration of any of the foregoing by any national,
state or local government (or any association, organization or institution of which any of the foregoing is a member, or to whose
jurisdiction any thereof is subject, or in whose activities any thereof is a participant), whether now or hereafter in effect.

 

1.12 “Patent
Rights” means (a) the patent applications and patents identified on Exhibit A attached hereto and any patents
that issue on said applications and the foreign equivalents thereof and (b) all provisionals, divisions, substitutions, continuations,
continuations-in-part to the extent any claims thereof are fully supported by another patent application identified in clause
(a), renewals claiming priority in whole or in part to a patent or patent application identified in clause (a), extensions, reissues,
reexaminations and the like of any of the patents identified in the foregoing clause (a) and the foreign equivalents thereof.

 

    	2

    	 

    

 

1.13 “Related
Party” means Licensee, its Affiliates and their respective sublicensees, as applicable; provided, however,
that a manufacturer that is sublicensed by Licensee solely for the purpose of manufacturing (and not for the purpose of developing,
marketing or selling) the Technology for Licensee and whose Patent Rights are not controlled by Licensee shall not be considered
a Related Party.

 

1.14 “Release”
shall mean, with respect to any Hazardous Material, any release, spill, emission, emanation, leaking, pumping, injection, deposit,
disposal, discharge, dispersal, leaching or migration of such Hazardous Material into the indoor or outdoor environment, including,
without limitation, the movement of such Hazardous Material through ambient air, soil, surface water, groundwater, sea water,
wetlands, land or subsurface strata.

 

1.15 “Technology”
means, singularly or jointly, Licensor’s heavy oil processing and treatment technologies commonly known as “Sonoprocess
Heavy Oil Processing Technology” and “Heavy Oil Emulsification Technology”, and any and all adaptations, modifications,
improvements and/or derivative works thereof from and after the Effective Date, whether developed, performed or acquired by Licensor,
or by Licensee pursuant to the license granted by this Agreement.

 

1.16 “Term”
has the meaning set forth in Section 8.1.

 

1.17 “Territory”
means the People’s Republic of China (which includes Hong Kong Special Administrative Region, Macau Special Administrative
Region or Taiwan), and the Republic of Indonesia and Federation of Malaysia.

 

1.18 “Third
Party” means an entity other than Licensor and its Affiliates, and Licensee and its Related Parties.

 

1.19 “Use”
means, with respect to any Hazardous Material and with respect to any person or entity, the generation, manufacture, processing,
distribution, handling, use, treatment, recycling, storage or disposal of such Hazardous Material or transportation to or from
the property controlled by such person or entity of such Hazardous Material.

 

Additional
terms may be defined throughout this Agreement.

 

Article
2 - GRANT

 

2.1 License
Grant. Licensor hereby grants to Licensee a non-exclusive license in the Territory under the Patent Rights and Know-How, with
a right to sublicense, to research, develop, practice, perform, make, use, manufacture, assemble, modify, sell, offer for sale,
distribute, import and otherwise exploit the Technology in the Field. Licensee shall have no right to market, sell, license (including
any soliciting of licenses) or distribute the Technology or any part thereof outside the Territory.

 

    	3

    	 

    

 

2.2 Sublicenses.

 

(a) Licensee
may grant written sublicenses of the license granted it under Section 2.1 (each, a “Sublicense Agreement”);
provided, however, that no sublicense granted under this Agreement shall have rights greater than those of Licensee
or be valid unless each sublicensee (each a “Sublicensee”) agrees in writing in a Sublicense Agreement:

 

(i) to
exercise its rights under the sublicense in accordance with the applicable terms of this Agreement;

 

(ii) to
maintain records that Licensee would be required to retain under this Agreement and to permit auditors of Licensor to inspect
such records on the same basis as such records could be inspected if retained by Licensee;

 

(iii) to
observe all other applicable terms of this Agreement;

 

(iv) that
such Sublicense Agreement shall automatically terminate upon (A) any termination of this Agreement or (B) a Bankruptcy Event affecting
Licensee, unless otherwise consented to in writing by Licensor;

 

(v) that
Licensor shall be a third party beneficiary under the applicable Sublicense Agreement and shall have the right to enforce any
and all obligations of Licensee under such Sublicense Agreement; and

 

(vi) that
in the event of a Bankruptcy Event, if the Sublicense Agreement is rejected and the Sublicensee does not elect to treat the Sublicense
Agreement as terminated, then the Sublicensee shall, at Licensor’s option, enter into a license agreement with Licensor
on substantially the same terms and conditions as the applicable Sublicense Agreement.

 

(b) Licensee
unconditionally guarantees the performance of all Sublicensees in accordance with the terms of this Agreement, and Licensee shall
be responsible for enforcing the provisions of any Sublicense Agreement to ensure that Sublicensees do not breach the terms of
this Agreement.

 

2.3 Except
as specifically set forth in this Agreement, neither party shall acquire any license or other intellectual property interest,
by implication or otherwise, in any information disclosed to it under this Agreement or under any Intellectual property controlled
by the other party.

 

Article
3 – PARTIES’ OBLIGATIONS

RELATING
TO COMMERCIALIZATION

 

3.1 Licensee’s
Obligations.

 

(a) Licensee
shall use its commercially reasonable and diligent efforts to bring one or more Technology to market in the Territory through
an active and diligent program for exploitation of the Patent Rights and Know-How and to continue active, diligent marketing efforts
for one or more Technology throughout the Territory during Term. In connection therewith, Licensee shall, at its own cost and
expense, use best efforts to:

 

(i) advertise,
market and promote the Technology throughout the Territory;

 

    	4

    	 

    

 

(ii) work
with Licensor to obtain regulatory approval of the Technology and registration of the Patent Rights in the Territory, provided
that Licensor shall bear the costs in connection therewith;

 

(iii) meet
the standards set by Licensor from time to time for displaying, demonstrating and explaining the operation and use of the Technology;

 

(iv) conduct
all business diligently and represent Licensor in a professional manner that brings credit to Licensor and enhances the reputation
of Licensor and the Technology;

 

(v) refrain
from making claims or representations concerning the Technology, other than as set forth in the applicable specifications or other
materials published by Licensor;

 

(vi) refrain
from discrediting either the Technology or Licensor;

 

(vii) use
only promotional and marketing material relating to Licensor or the Technology that has been approved in writing by Licensor;

 

(viii) include
in all advertising and promotional materials all applicable copyright and trademark notices as Licensor specifies from time to
time; and

 

(ix) consult
with Licensor regarding any advertising or trade practice that might affect the good name, trademarks, goodwill or reputation
of Licensor or the Technology, and comply with any requests of Licensor with regard to any such practice.

 

(b) Subject
to Section 3.1(a)(ii), Licensee shall bear all costs and risks associated with or arising from or relating to the commercialization
of the Technology in the Territory; provided that Licensee shall have the option, but not the obligation, to purchase such
equipment of Licensor as designated by Licensee at Licensor’s cost. Licensee shall maintain complete and accurate records
of the Technology that are made, used, sold or performed by Licensee under this Agreement. Not later than April 1st of each full
calendar year following the Effective Date, Licensee shall furnish Licensor with a summary report on the progress of its efforts
during the prior Calendar Year to develop and commercialize the Technology in the Territory, including research and development
efforts, efforts to obtain regulatory approval, marketing efforts and sales figures, provided that such reports shall be
deemed Confidential Information subject to the provisions of Article 9.

 

3.2 Licensor’s
Obligations. Licensor shall provide pre-commercialization support to Licensee on an “as needed” basis as follows:
(i) sales collaterals, (ii) scientific data relating to the Technology and (iii) on-site customer training within the Territory
on use of the Technology.

 

3.3 In
the event that either party determines that the other party has not fulfilled its obligations under this Article 3, such
party shall furnish the non-performing party with written notice of such determination. Within sixty (60) days after receipt of
such notice, the non-performing party shall either (a) fulfill the relevant obligation or (b) negotiate with the notifying party
a mutually acceptable schedule of revised obligations; failing which the notifying party shall have the right, immediately upon
written notice to non-performing party, to terminate this Agreement.

 

    	5

    	 

    

 

Article
4 - PAYMENTS; ROYALTIES AND REPORTS

 

4.1 License
Royalties. In consideration for Licensor’s granting of the license granted under Section 2.1, Licensee shall
pay Licensor a perpetual license royalty as follows:

 

(a) 5%
of the per barrel spot price of West Texas Intermediate (averaged over the quarter) for each barrel of oil produced post-processing
using the Technology in the Territory by Licensee; and

 

(b) 5%
of the per barrel spot price of West Texas Intermediate (averaged over the quarter) for each barrel of oil produced post-processing
using the Technology in the Territory by Sublicensee.

 

4.2 Reports;
Payment of Royalty. During the Term, Licensee shall furnish to Licensor a quarterly written report for the Calendar Quarter
showing the number of barrels of heavy oil processed by Licensee and each of its Sublicensees during the reporting period and
the royalties payable under this Agreement. Reports shall be due on the thirtieth (30th) day following the close of each Calendar
Quarter. Royalties shown to have accrued by each royalty report shall be due and payable on the date such royalty report is due.
Licensee shall keep complete and accurate records in sufficient detail to enable the royalties payable hereunder to be determined.

 

4.3 Audits.

 

(a) Upon
the written request of Licensor and not more than once in each Calendar Year, Licensee shall permit an independent certified public
accounting firm of nationally recognized standing selected by Licensor and reasonably acceptable to Licensee, to have access during
normal business hours to such of the records of Licensee as may be reasonably necessary to verify the accuracy of the royalty
reports hereunder for any year ending not more than thirty-six (36) months prior to the date of such request. The accounting firm
shall disclose to Licensor only whether the royalty reports are correct or incorrect and the amount of any discrepancy. No other
information shall be provided to Licensor.

 

(b) If
such accounting firm correctly identifies a discrepancy made during such period, the appropriate party shall pay the other party
the amount of the discrepancy within thirty (30) days of the date Licensor delivers to Licensee such accounting firm’s written
report so correctly concluding, or as otherwise agreed upon by the parties. The fees charged by such accounting firm shall be
paid by Licensor; provided, however, that if such audit uncovers a non-payment or an underpayment of royalties by Licensee to
Licensor during the audited period that exceeds five percent (5%) of the total royalties owed, then the fees of such accounting
firm shall be paid by Licensee.

 

(c) Licensor
shall cause its accounting firm to enter into an acceptable confidentiality agreement with Licensee and/or its Related Parties
prior to conducting an audit.

 

4.4 Payment
Exchange Rate. All payments to be made by Licensee to Licensor under this Agreement shall be made in United States dollars
and shall be paid by bank wire transfer in immediately available funds to such bank account in the United States as may be designated
in writing by Licensor from time to time. All amounts owing to Licensor stated in a currency other than the United States dollar
shall be converted by using GAAP applied at the currency exchange rate shown in The Wall Street Journal on the last day
of the applicable Calendar Quarter.

 

4.5 Taxes.
All payments due hereunder shall be paid in full without deduction of taxes or other fees which may be imposed by any government
and which shall be paid by Licensee; provided, however, that any withholding tax required to be withheld by Licensee
on royalty payments under the laws of any country in the Territory on behalf of Licensor will be timely paid by Licensee to the
appropriate governmental authority, and Licensee will furnish Licensor with proof of payment of such tax. Any such tax actually
withheld may be deducted from royalty payments due to Licensor under this Agreement. If at any time legal restrictions prevent
the prompt remittance of part or all of any payments owed by Licensee to Licensor hereunder with respect to any country in the
Territory, payment shall be made through any lawful means or methods that may be available, and as Licensee shall reasonably determine
is appropriate.

 

    	6

    	 

    

 

4.6 Overdue
Payments. Any payments to be made by Licensee hereunder that are not paid on or before the date such payments are due under
this Agreement shall bear interest, to the extent permitted by law, at two (2) percentage points above the prime rate of interest
as reported in The Wall Street Journal on the date payment is due, with interest calculated based on the number of days
that payment is delinquent.

 

Article
5- PATENT PROSECUTION

 

5.1 Filing,
Prosecution and Maintenance of Patents. Licensor shall file, prosecute and maintain in the Territory the Patent Rights. Licensor
shall give Licensee an opportunity to review the text of any patent application before filing, shall consult with Licensee with
respect thereto, and shall supply Licensee with a copy of the application as filed, together with notice of its filing date and
serial number. For those patents and patent applications covered in this Section 5.1, Licensor shall keep Licensee advised
of the status of the actual and prospective patent filings and, upon request, shall provide advance copies of any papers related
to the filing, prosecution and maintenance of such patent filings. Licensor shall promptly give notice to Licensee of the grant,
lapse, revocation, surrender, invalidation or abandonment of any of the Patent Rights. With respect to all filings hereunder,
Licensor shall be responsible for payment of all costs and expenses related to such filings.

 

5.2 Option
of Licensee to Prosecute and Maintain Patents and Patent Applications. Licensor shall give notice to Licensee of any desire
to cease prosecution and/or maintenance of Patent Rights on a country by country basis in the Territory and, in such case, shall
permit Licensee, in its sole discretion, to continue prosecution or maintenance of such Patent Rights at its own expense. If Licensee
elects to continue prosecution or maintenance, Licensor shall execute such documents and perform such acts at Licensor’s
expense as may be reasonably necessary for Licensee to perform such prosecution or maintenance on behalf of and in the name of
Licensor.

 

5.3 Interference,
Opposition, Reexamination and Reissue. 

 

(a) Each
party shall, within ten (10) days of learning of such event, inform the other party of any request for, or filing or declaration
of, any interference, opposition, reissue or reexamination relating to the Patent Rights. Licensee and Licensor shall thereafter
consult and cooperate fully to determine a course of action with respect to any such proceeding.

 

(b) In
connection with any interference, opposition, reissue, or reexamination proceeding relating to the Patent Rights, the parties
will cooperate fully and will provide each other with any information or assistance that either may reasonably request. Each party
shall keep the other party informed of developments in any such action or proceeding, including, to the extent permissible by
law, consultation on and approval of any settlement, the status of any settlement negotiations and the terms of any offer related
thereto.

 

    	7

    	 

    

 

(c) Licensor
shall bear the expense of any interference, opposition, reexamination, or reissue proceeding relating to the Patent Rights.

 

(d) Both
parties shall, as soon as practicable after receiving notice of certification of an action, convene and consult with each other
regarding the appropriate course of conduct for such action. The non-initiating party shall have the right to be kept fully informed
and participate in decisions regarding the appropriate course of conduct for such action, and the right to join and participate
in such action.

 

Article
6 - PROSECUTION OF INFRINGERS

AND
DEFENSE OF PATENT RIGHTS

 

6.1 Enforcement
and Defense.

 

(a) As
soon as practicable, each of Licensor and Licensee shall give the other party notice of (i) any infringement of the Patent Rights,
(ii) any claim of invalidity, unenforceability, or non-infringement of the Patent Rights or (iii) any misappropriation or misuse
of the Know-How that may come to such party’s attention. Licensee and Licensor shall thereafter consult and cooperate fully
to determine a course of action, including but not limited to the commencement of legal action by either or both Licensee and
Licensor, to terminate any infringement, or claim of invalidity, unenforceability, or non-infringement, of the Patent Rights or
any misappropriation or misuse of the Know-How. However, Licensor, upon notice to Licensee, shall have the first right to initiate
and prosecute such legal action at its own expense and in the name of Licensor and Licensee, or to control the defense of any
declaratory judgment action relating to the Patent Rights or the Know-How. Licensor shall promptly inform Licensee if it elects
not to exercise such first right and Licensee shall thereafter have the right to either initiate and prosecute such action or
to control the defense of such declaratory judgment action in the name of Licensee and, if necessary, Licensor; provided
that Licensee shall not admit the invalidity or fail to defend the validity of any the Patent Right without Licensor’s prior
consent which shall not be unreasonably withheld. Each party shall have the right to be represented by counsel of its own choice.
In connection with any action, Licensee and Licensor will cooperate fully and will provide each other with any information or
assistance that either may reasonably request. Each party shall keep the other informed of developments in any action or proceeding,
including, to the extent permissible by law, consultation on and approval of any settlement, the status of any settlement negotiations
and the terms of any offer related thereto.

 

(b) In
the event that Licensor elects not to initiate and prosecute an action as provided in Section 6.1(a), and Licensee elects
to do so, the costs of any agreed-upon course of action, including the costs of any legal action commenced or the defense of any
declaratory judgment, shall be shared equally by Licensor and Licensee; provided, that in the event that Licensee is unable
to initiate or prosecute such action solely in its own name, Licensor will join such action voluntarily and will execute and cause
its Affiliates to execute all documents necessary for Licensee to initiate litigation to prosecute and maintain such action.

 

(c) Any
recovery obtained by either or both Licensee and Licensor in connection with or as a result of any action contemplated by this
Section 6.1, whether by settlement or otherwise, shall be shared in order as follows:

 

(i) the
party that initiated and prosecuted the action shall recoup all of its costs and expenses incurred in connection with the action;

 

    	8

    	 

    

 

(ii) the
other party shall then, to the extent possible, recover its costs and expenses incurred in connection with the action; and

 

(iii) the
amount of any recovery remaining shall then be allocated on a 75%/25% basis, with the party that initiated and prosecuted the
action receiving 75% of the recovery and the other party receiving 25% of the recovery.

 

6.2 Effect
of Certain Terminations. Notwithstanding anything in this Article 6 to the contrary, in the event of a termination
of this Agreement by either party pursuant to Section 8.2 or by Licensor pursuant to Section 8.3, Licensee shall
have no rights and Licensor shall have no obligations under this Article 6 with respect to Patent Rights.

 

Article
7 - INDEMNIFICATION

 

7.1 By
Licensee. Licensee agrees to indemnify, hold harmless and defend Licensor and its officers, directors, shareholders, employees,
successors and assigns (collectively, the “Licensor Indemnified Parties”) against any and all losses, costs,
expenses, fees or damages arising out of or relating to claims asserted by any Third Party arising out of or relating to (a) personal
injury arising from the research, development, manufacture, use, performance, sale or other disposition of any Technology by Licensee
or its Related Parties under this Agreement; (b) Licensee’s breach of any of its representations and warranties set forth
in Section 11.2; (c) Licensee’s failure to comply with all applicable laws, rules and regulations; or (d) the gross
negligence or willful misconduct of any of the Licensee Indemnified Parties, provided that Licensee shall not be required
to indemnify, hold harmless or defend any Licensor Indemnified Party against any claim arising out of or related (i) a claim that
Licensee’s exercise of the rights granted herein infringe Third Party intellectual property rights, (ii) gross negligence
or willful misconduct of a Licensor Indemnified Party, or (iii) failure of any Licensor Indemnified Party to comply with all applicable
laws, rules and regulations.

 

7.2 By
Licensor. Licensor agrees to indemnify, hold harmless and defend Licensee and its officers, directors, shareholders, employees,
successors and assigns (collectively, the “Licensee Indemnified Parties”) against any and all losses, costs,
expenses, fees or damages arising out of or relating to claims asserted by any Third Party arising out of or relating to (a) Licensor’s
breach of any of its representations and warranties set forth in Section 11.1; (b) Licensor’s failure to comply with
all applicable laws, rules and regulations; (c) a claim that Licensee’s exercise of the rights granted herein infringe Third
Party intellectual property rights or (d) the gross negligence or willful misconduct of any of the Licensor Indemnified Parties,
provided that Licensor shall not be required to indemnify, hold harmless or defend any Licensee Indemnified Party against
any claim arising out of or related to any Licensee Indemnified Party’s (i) gross negligence or willful misconduct, or (ii)
failure to comply with all applicable laws, rules and regulations.

 

7.3 Procedure.
If either party is seeking indemnification under Section 7.1 or 7.2 (the “Indemnified Party”),
it shall inform the other party (the “Indemnifying Party”) of the claim giving rise to the obligation to indemnify
pursuant to such section as soon as reasonably practicable after receiving notice of the claim. The Indemnifying Party shall have
the right to assume the defense of any such claim for which it is obligated to indemnify the Indemnified Party. The Indemnified
Party shall cooperate with the Indemnifying Party and the Indemnifying Party’s insurer as the Indemnifying Party may reasonably
request, and at the Indemnifying Party’s cost and expense. The Indemnified Party shall have the right to participate, at
its own expense and with counsel of its choice, in the defense of any claim or suit that has been assumed by the Indemnifying
Party. Neither party shall have the obligation to indemnify the other party in connection with any settlement made without the
Indemnified Party’s written consent, which consent shall not be unreasonably withheld or delayed.

 

    	9

    	 

    

 

7.4 Insurance.
Licensee agrees to maintain insurance or self-insurance that is reasonably adequate to fulfill any potential obligation to the
indemnified parties. Licensee shall continue to maintain such insurance or self-insurance during the Term and thereafter for a
period of five (5) years. Licensee shall provide to Licensor, upon request, proof of any such insurance policy maintained by Licensee.

 

Article
8 - TERMINATION

 

8.1 Term
and Expiration. This Agreement shall be effective as of the Effective Date and, unless terminated earlier pursuant to Section
8.2 or 8.3, this Agreement shall continue in effect until all of the Patent Rights (including all renewals and extensions
thereof) shall have expired as to Licensor under applicable Laws (the “Term”). Upon expiration of this Agreement,
Licensee’s license pursuant to Section 2.1 shall terminate as of such expiration date.

 

8.2 Termination
by Licensee without Cause. Notwithstanding anything contained herein to the contrary, Licensee shall have the right to terminate
this Agreement at any time in its sole discretion by giving one hundred twenty (120) days’ advance written notice to Licensor.
Prior to the effective date of the termination of this Agreement pursuant to this Section 8.2, Licensee shall return or
cause to be returned to Licensor all Information in tangible form received from Licensor and all copies thereof.

 

8.3 Termination
for Cause. This Agreement may be terminated at any time during the Term:

 

(a) upon
written notice by either party if the other party is in breach of any material obligation hereunder and has not cured such breach
within ninety (90) days after written notice requesting cure of the breach.

 

(b) either
party upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment
of a substantial portion of the assets for the benefit of creditors by the other party (a “Bankruptcy Event”),
provided, however, that in the case of any involuntary bankruptcy proceeding such right to terminate shall only
become effective if the party subject thereto consents to involuntary bankruptcy or such proceeding is not dismissed within ninety
(90) days after the filing thereof.

 

8.4 Effect
of Expiration or Termination; Survival.

 

(a) Effect
on Licenses.

 

(i) In
the event of termination under Section 8.2 or termination by Licensor pursuant to Section 8.3, Licensee’s
license pursuant to Section 2.1 shall terminate as of such termination date.

 

(ii) In
the event of termination by Licensee pursuant to Section 8.3, the license granted pursuant to Section 2.1 shall
become a perpetual license, subject to the obligation to pay royalties as set forth in this Section 8.4(a)(i). In the event
of such a termination by Licensee, Licensee shall continue to have an obligation to pay Licensor royalties pursuant to and under
the terms set forth in Section 4.1.

 

    	10

    	 

    

 

(b) Payment
Obligations Following Termination. In the event of termination under Section 8.2 or 8.3, each party shall pay
all amounts then due and owing as of the effective date of such termination no later than sixty (60) days after the effective
date of such termination.

 

8.5 Survival.
Expiration or termination of this Agreement shall not relieve the parties of any obligation accruing prior to such expiration
or termination. Any expiration or termination of this Agreement shall be without prejudice to the rights of either party against
the other accrued or accruing under this Agreement prior to expiration or termination, including the obligation to pay royalties
for the Technology sold or otherwise provided prior to such expiration or termination. The provisions of Article 1, Article
7, Article 8, Article 9, Article 11, Article 12 and Article 13 and shall survive any expiration
or termination of this Agreement.

 

Article
9 - CONFIDENTIALITY AND NON-DISCLOSURE

 

9.1 Confidentiality
Obligation. During the Term and thereafter, except as expressly provided below, each of party shall keep in strictest confidence,
and shall cause its employees and agents, to keep in strictest confidence, the existence, source, content and substance of all
Know-How. Licensee shall not use any Know-How in any way, for its own account or the account of any Third Party, except to the
extent reasonably necessary to exercise its rights or perform its obligations hereunder. Neither party shall disclose any Know-How
to any party, other than furnishing such Know-How to its employees, consultants, manufacturers, investors, potential acquirers,
professional advisers and other Third Parties who are required to have access to the Know-How in connection with the exercise
of such party’s rights and performance of its obligations hereunder; provided that such employees, consultants, manufacturers,
investors, acquirers, professional advisers and other Third Parties are bound by written agreements or, in the case of professional
advisers, ethical duties respecting such Know-How in accordance with the terms of this Article 9.

 

9.2 Exceptions.
Notwithstanding the foregoing, Section 9.1 shall not apply to all or any part of the Know-How that (i) is or becomes publicly
known, from no act or failure to act on the part of the party claiming the availability of the exception of this clause (i), (ii)
is disclosed to the party claiming the availability of the exception of this clause (ii) by a Third Party as a matter of right
and without restriction on disclosure, or (iii) is developed independently by the party claiming the availability of the exception
of this clause (iii) without any reliance on or reference to the Know-How.

 

9.3 Disclosures
Required by Law. In the event the disclosure of the Know-How is required by applicable law, judicial or regulatory subpoena
or any securities exchange listing agreement to which a party is a party, the party required to make such disclosure must provide
the other party with prompt written notice of any such requirement in order to afford such other party time either to seek an
appropriate protective order (or other remedy) or a waiver of compliance therewith. If such order or other remedy is not obtained,
the party required to make such disclosure shall disclose only that portion of the subject Know-How that in the opinion of counsel
to such party is legally required to be disclosed and shall exercise all reasonable efforts to obtain assurances that confidential
treatment will be accorded the Know-How. The party to make the applicable disclosure shall cooperate reasonably with the other
party in all respects in seeking to obtain a protective order or other remedy or otherwise to diligently contest or limit the
required disclosure.

 

    	11

    	 

    

 

Article
10 - PAYMENTS, NOTICES, AND OTHER COMMUNICATIONS

 

Any
payment, notice or other communication pursuant to this Agreement shall be in writing and sent by certified first class mail,
postage prepaid, return receipt requested, or by nationally recognized overnight carrier addressed to the parties at the following
addresses or such other addresses as such party furnishes to the other party in accordance with this paragraph. Such notices,
payments, or other communications shall be effective upon receipt.

 

	In the
    case of Licensor:	 	Petrosonic
    Energy, Inc.
	 	 	914 Westwood Boulevard,
    No. 545
	 	 	Los Angeles, California 90024
	 	 	Attention: Chief Executive Officer
	 	 	 
	With a copy to:
    (which 	 	LKP
    Global Law, LLP
	 shall not constitute notice)	 	1901
    Avenue of the Stars, Suite 480
	 	 	Los
    Angeles, California 90067
	 	 	Attention:
    Kevin K. Leung, Esq.
	 	 	 
	In the case of Licensee:	 	Kuai Le GU, LLC
	 	 	 
	 	 	 
	 	 	Attention: Yan Sheng
	 	 	 
	With a copy to: (which 	 	LKP Global Law, LLP
	 shall not constitute notice) 	 	1901 Avenue of the Stars, Suite 480
	 	 	Los Angeles, California 90067
	 	 	Attention: Kevin K. Leung, Esq.

 

Article
11 - REPRESENTATIONS AND WARRANTIES; DISCLAIMER

 

11.1 Representations
and Warranties of Licensor. Licensor represents and warrants to Licensee as of the Effective Date that:

 

(a) to
Licensor’s knowledge, the Patent Rights and Know-How exist and are not invalid or unenforceable, in whole or in part;

 

(b) Licensor
is duly organized and validly existing under the laws of the State of Nevada;

 

(c) Licensor
has the full corporate right, power and authority to enter into this Agreement and to grant the license granted under Section
2.1; provided, however, that any Licensor representation or warranty pertaining to the Patent Rights or to the
infringement of Third Party Patent Rights is made exclusively by Licensor in Sections 11.1(f) and not this Section 11.1(c);

 

(d) to
Licensor’s knowledge, this Agreement is legally binding upon Licensor and enforceable in accordance with its terms, and
the execution, delivery, and performance of this Agreement by Licensor does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over it;

 

(e) Licensor
has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the Patent Rights
or the Know-How;

 

    	12

    	 

    

 

(f) to
Licensor’s knowledge, it is the sole and exclusive owner or licensee of the Patent Rights and Know-How, all of which are
free and clear of any liens, charges and encumbrances, and no other person, corporate or other private entity, or governmental
entity or subdivision thereof, has any claim of ownership whatsoever with respect to the Patent Rights and the Know-How;

 

(g) to
Licensor’s knowledge, there are no claims, judgments or settlements against or owed by Licensor and no pending or written
threatened claims or litigation relating to the Patent Rights and the Know-How; and

 

(h) Licensor
has disclosed to Licensee all reasonably relevant information regarding the Patent Rights and the Know-How licensed under this
Agreement.

 

11.2 Representations
and Warranties of Licensee. Licensee represents and warrants to Licensor that as of the Effective Date:

 

(a) Licensee
has the full right, power and authority to enter into this Agreement;

 

(b) Licensee
is duly organized and validly existing under the laws of the State of Delaware;

 

(c) to
Licensee’s knowledge, this Agreement is legally binding upon Licensee and enforceable in accordance with its terms, and
the execution, delivery, and performance of this Agreement by Licensee does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over it;

 

(d) Licensee
shall at all time (i) comply with all Laws applicable to its performance pursuant to this Agreement, including, without limitation,
the development, manufacture, use, provision, and sale of the Technology in the Territory, and (ii) perform any work required
under this Agreement safely and in a manner which shall present no threat of bodily injury or property damage, and shall enforce
compliance with the highest standards of safety and accident prevention found in applicable Laws;

 

(e) Licensee
shall ensure that any use of the Technology in the Territory complies with all applicable Environmental Laws, and shall obtain
and maintain all licenses, authorizations, certifications and approvals required under any applicable Environmental Law in the
Territory in connection with the Technology;

 

(f) Licensee
shall not permit the Release of any Hazardous Material into the environment in the Territory and, in the event of any such Release,
shall promptly perform any investigation, study, sampling, testing, cleanup, removal and remedial or other action necessary to
remove and clean up any such Hazardous Materials in accordance with the requirements of all applicable Environmental Laws;

 

(g) Licensee
shall advise its Related Parties and Sublicensees that are not Related Parties of any hazard or toxic substance which is present
in or may be encountered by them and their Affiliates in using or possessing the Technology, and Licensee shall use its best efforts
to minimize the hazard or toxicity thereof; and

 

    	13

    	 

    

 

(h) Licensee
shall deliver the following notices to Licensor: (i) promptly upon obtaining knowledge of (x) any fact, circumstance, condition
or occurrence that could form the basis of an Environmental Claim arising with respect to or against the Technology or Licensee
in the Territory or (y) any pending or threatened Environmental Claim arising with respect to or against the Technology or Licensee
in the Territory, a notice thereof describing the same in reasonable detail and, together with such notice or as soon thereafter
as possible, a description of the action that such person or entity has taken or proposes to take with respect thereto and, thereafter,
from time to time such detailed reports with respect thereto as Licensee may reasonably request; and (ii) promptly upon their
becoming available, copies of all written communications with any government authority relating to any Environmental Law or Environmental
Claim arising out of the Technology in the Territory.

 

11.3 Disclaimer.
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, LICENSOR, ITS DIRECTORS, OFFICERS, EMPLOYEES, AND AFFILIATES MAKE NO
REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS, ISSUED OR PENDING, AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER
OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY LICENSOR THAT
THE PRACTICE BY LICENSEE OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY.

 

Article
12 – LIMITATION OF LIABILITY

 

12.1 EXCEPT
FOR ANY LIABILITY TO ANY THIRD PARTIES PURSUANT TO Article 7 OR FOR
BREACH OF CONFIDENTIALITY OBLIGATIONS, IN NO EVENT SHALL LICENSOR OR LICENSEE OR THEIR, ITS DIRECTORS, OFFICERS, EMPLOYEES OR
AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY AND
LOST PROFITS, REGARDLESS OF WHETHER LICENSOR OR LICENSEE SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IF LICENSOR SHALL
KNOW OF THE POSSIBILITY OF SUCH DAMAGES.

 

12.2 IN
NO EVENT SHALL LICENSOR BE LIABLE TO LICENSEE OR ANY THIRD PARTY UNDER ANY LEGAL THEORY FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES, OR ANY DAMAGES FOR LOSS OF PROFITS, REVENUE, BUSINESS, SAVINGS, DATA OR USE INCURRED BY LICENSEE
OR ANY THIRD PARTY, EVEN IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

Article
13- MISCELLANEOUS PROVISIONS

 

13.1 Force
Majeure. Neither party shall be held liable to the other party nor be deemed to have defaulted under or breached this Agreement
for failure or delay in performing any obligation under this Agreement to the extent that such failure or delay is caused by or
results from causes beyond the reasonable control of the affected party, such as embargoes, war, acts of war (whether war be declared
or not), insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, fire, floods, or other acts of
God, or acts, omissions or delays in acting by any governmental authority or the other party. The affected party shall notify
the other party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all reasonable
efforts necessary to cure such force majeure circumstances.

 

    	14

    	 

    

 

13.2 Subcontractors.
If subcontractors are employed by Licensee, Licensee shall be fully responsible for their acts and omissions and the acts and
omissions of their employees. There shall be no contractual relationship between any such subcontractor and Licensor. Licensee
shall indemnify, defend and hold harmless Licensor from and against any and all liability for payment of Licensee’s subcontractors
and suppliers, including without limitation, mechanic’s liens.

 

13.3 Announcements.
Neither party shall originate any publicity, news release or other public announcement (“Announcements”), written
or oral, relating to this Agreement or the existence of an arrangement between the parties, without the prior written approval
of the other party, which approval shall not be unreasonably withheld or delayed, except as otherwise required by law. The foregoing
notwithstanding, Licensor shall have the right to make such Announcements without the consent of Licensee in any prospectus, offering
memorandum, or other document or filing required by applicable securities laws or other applicable law or regulation, provided
that Licensor shall have given Licensee, at least ten (10) days prior written notice of the proposed text for the purpose
of giving Licensee, the opportunity to comment on such text.

 

13.4 Implied
License. No implied licenses are granted pursuant to the terms of this Agreement. No licensed rights shall be created by implication
or estoppel.

 

13.5 Relationship
between the Parties. Nothing herein shall be deemed to constitute either party as the agent or representative of the party,
or both parties as joint ventures or partners for any purpose. Each party shall be an independent contractor, not an employee
or partner of the other party, and the manner in which each party renders its services under this Agreement shall be within its
sole discretion. Neither party shall be responsible for the acts or omissions of the other party, nor shall either party have
authority to speak for, represent or obligate the other party in any way without prior written authority from the other party.

 

13.6 Patent
Marking. To the extent commercially feasible, and consistent with prevailing business practices and applicable law, all Technology
sold pursuant to this Agreement will be marked with the number of each issued patent that applies to such Technology.

 

13.7 Applicable
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California and the patent
laws of the United States, without reference to any rules of conflict of laws, provided that any dispute relating to the
scope, validity, enforceability, infringement or misuse of any Patent Rights shall be governed by, and construed and enforced
in accordance with, the substantive laws of the jurisdiction in which such Patent Right originates.

 

13.8 Entire
Agreement; Amendments. The parties acknowledge that this Agreement sets forth the entire Agreement and understanding of the
parties as to the subject matter hereof, and shall not be subject to any change or modification except by the execution of a written
instrument signed by the parties. Any other express or implied agreements and understandings, either oral or written, are
superseded by the terms of this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument
duly executed by authorized representatives of the parties.

 

13.9 Severability.
If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the parties. The parties
shall in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal
and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement.

 

    	15

    	 

    

 

13.10 Headings.
The captions to the several Articles and Sections hereof are not a part of this Agreement, but are merely for convenience to assist
in locating and reading the several Articles and Sections hereof.

 

13.11 Waiver.
The failure of either party to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement
shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the
other party. The waiver by either party of any right hereunder, or of any failure of the other party to perform, or of any breach
by the other party, shall not be deemed a waiver of any other right hereunder or of any other breach by or failure of such other
party, whether of a similar nature or otherwise.

 

13.12 Assignment/
Change of Control. Except as provided in this Section 13.12, this Agreement may not be assigned or otherwise transferred,
nor may any right or obligation hereunder be assigned or transferred, by either party without the consent of the other party.
Either party may, without the other party’s consent, assign this Agreement and its rights and obligations hereunder (except
as specified below) in connection with a Change of Control. In the event of such Change of Control, such party will promptly (but
in no event later than five (5) days thereafter) notify the other party of such Change of Control. Any assignee shall assume all
assigned obligations of its assignor under this Agreement. Any attempted assignment not in accordance with this Section 13.12
shall be void. Subject to the foregoing, this Agreement shall inure to the benefit of and bind the successors and assigns
of the parties. A “Change of Control” of a party shall be deemed to occur if such party is involved in a merger,
reorganization or consolidation, or if there is a sale of all or substantially all of such party’s assets or business relating
to this Agreement or if a person or group other than the current controlling person or group shall effectively acquire control
of the management and policies of such party.

 

13.13 Interpretation.
Each party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement.
Accordingly, the rule of construction that any ambiguity in this Agreement shall be construed against the drafting party shall
not apply. This Agreement has been prepared jointly and no rule of strict construction shall be applied against either party.
In this Agreement, the singular shall include the plural and vice versa and the word “including” shall be deemed to
be followed by the phrase “without limitation.”

 

13.14 Counterparts.
This Agreement may be executed in counterparts, each of which together shall constitute one and the same Agreement. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

13.15 Remedies.
No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other
remedy referred to in this Agreement or otherwise available under law.

 

[Remainder
of page intentionally blank; Signature page follows]

 

    	16

    	 

    

 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement on the Effective Date.

 

Licensor:

Petrosonic
Energy, Inc.

a
Nevada corporation

 

	By:	/s/
    Art Agolli	 
	Name:	Art Agolli 	 
	Title:	Chief Executive Officer	 

 

Licensee:

Kuai
Le GU, LLC

a
Delaware limited liability company

 

	By:	/s/ Yan Sheng	 
	Name:	Yan Sheng	 
	Title:	Member, Board of Managers	 

 

    	17

    	 

    

 

EXHIBIT
A

Patent
Rights

 

Patents

 

	Patent
    No.	 	Title	 	Inventors
	 	 	 	 	 

 

Patent
Applications

 

	Serial
    No.	 	Title	 	Inventors

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