Document:

Exhibit
10.16

  

DEBT
CONVERSION AGREEMENT

(United
States Lender)

 

Made
as of the 18th day of May, 2017.

 

B
E T W E E N :

PETROTEQ
ENERGY INC.

(the
“Company”)

 

OF
THE FIRST PART;

 

-
and -

 

ALEKSANDR
BLYUMKIN

(the
“Lender”)

 

OF
THE SECOND PART;

 

WHEREAS
the Company is indebted to the Lender in the principal amount of US$204,000.00 plus accrued and unpaid interest pursuant to a
convertible debenture, which for greater certainty is equal to US$265,343.58 including accrued and unpaid interest up to and including
May 19, 2017, attached hereto as Schedule “A” (the “Debt”);

 

AND
WHEREAS the Lender has agreed to accept 751, 681 common shares of the Company (the “Debt Shares”) at a deemed
price per share of $US0.353 (CAD$0.48 based on the Bank of Canada daily noon exchange rate on the date hereof) in full and final
settlement of the Debt including accrued and unpaid interest;

 

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

 

		1.	Subject
                                         to the terms and conditions hereafter contained, the Lender agrees to accept, in full
                                         and final satisfaction of the Debt, the Debt Shares. The Lender further agrees that,
                                         upon the issuance and delivery of the Debt Shares to the Lender, or as the Lender may
                                         direct, the Lender shall fully release the Company in respect of the Debt and acknowledges
                                         the full repayment thereof by the Company. For greater certainty, the Lender irrevocably
                                         waives any and all rights to all interest on or after May 20, 2017.

 

		2.	The
                                         issuance of the Debt Shares shall be conditional on the (i)the issuance of the Debt
                                         Shares being exempt from the prospectus and registration requirements under applicable
                                         securities laws, the United States Securities Act of 1933, as amended (the “U.S.
                                         Securities Act”) and applicable state securities laws, (ii) approval of this
                                         Agreement by the directors of the Company, and (iii) the Company receiving final approval
                                         from the TSX Venture Exchange (the “TSXV”) or any other applicable
                                         stock exchange for the issuance and listing of the Debt Shares.

 

		3.	The
                                         closing of this Agreement (the “Closing”) shall take place no later
                                         than thirty (30) business days subsequent to the date hereof, or such later time the
                                         parties hereto agree.

 

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

 

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

  

    	 	- 1 -	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

  

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

  

    	 	- 2 -	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		6.	The
                                         Lender acknowledges and agrees as follows:

 

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

 

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

  

    	 	- 3 -	 

     

    

 

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

 

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

 

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

 

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

 

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

 

		(d)	The
                                         Lender acknowledges that:

 

		(i)	the
                                         Company has determined that it has ceased to qualify as a “foreign private issuer”
                                         (as such term is defined in Rule 405 under the U.S. Securities Act and Rule 3b-4 under
                                         the United States Securities Exchange Act of 1934, as amended) as of February 28, 2017
                                         (being the last business day of its most recently completed second fiscal quarter, and
                                         hereinafter referred to as the “Determination Date”), and, accordingly,
                                         the Company will be deemed to be a U.S. domestic issuer for the purposes of U.S. federal
                                         securities laws and cease to be eligible to use the forms and rules designated for foreign
                                         private issuers under U.S. federal securities laws after August 31, 2017 (being the end
                                         of Company’s current fiscal year, and hereinafter referred to as the “Fiscal
                                         Year End Date”);

  

    	 	- 4 -	 

     

    

 

		(ii)	Rule
                                         905 of Regulation S under the U.S. Securities Act (“Rule 905”) provides
                                         in material part that any “restricted securities” that are equity securities
                                         of a U.S. domestic issuer will continue to be deemed to be restricted securities, notwithstanding
                                         that they were acquired in a resale transaction made pursuant to Rule 901 or Rule 904
                                         of Regulation S under the U.S. Securities Act;

 

		(iii)	As
                                         interpreted by Staff at the United States Securities and Exchange Commission (“SEC
                                         Staff”), Rule 905 applies to equity securities that, at the time of issuance, were
                                         those of a U.S. domestic issuer, and, in the absence of any additional guidance from
                                         SEC Staff, it remains unclear whether the Company will be considered for such proposes
                                         to have become a U.S. domestic issuer on the Determination Date or on the day next following
                                         the Fiscal Year End Date;

 

		(iv)	if
                                         the Company is deemed to have become a U.S. domestic issuer on the Determination Date
                                         for the purposes of Rule 905, the Debt Shares will continue to be “restricted securities”
                                         if they are resold in an “offshore transaction” pursuant to Rule 904 of Regulation
                                         S, with the result that it would not be possible to make “good delivery”
                                         of the Debt Shares on the TSXV or any other Canadian stock exchange;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

  

    	 	- 5 -	 

     

    

 

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

 

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

 

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

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

 

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

 

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

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

 

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

 

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

 

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

 

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

 

[Signature
page follows]

  

    	 	- 6 -	 

     

    

 

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

  

	 	MCW ENERGY GROUP LIMITED
	 	 	 
	 	By:	/s/ Aleksandr Blyumkin
	 	 	Name:  	Aleksandr Blyumkin
	 	 	Title:	 Chairman

 

	 	 	/s/
    Aleksandr Blyumkin
	Signature
    of Witness	 	Aleksandr
    Blyumkin

   

    	 	- 7 -	 

     

    

 

SCHEDULE
“A”

 

CONVERTIBLE
DEBENTURE

  

    	 	- 8 -	 

     

    

 

SCHEDULE
“B”

 

U.S.
ACCREDITED INVESTOR CERTIFICATE

 

    	 	- 9 -Exhibit 10.17

 

 INDEMNITY AGREEMENT

 

DATED this ____
day of ____________.

 

B E T W E E N:

 

PETROTEQ ENERGY, INC.,
a corporation established pursuant to the laws of the Province of British Columbia

 

(hereinafter referred to as the
“Indemnifier”)

 

- and -

 

[_____________], an individual
residing in the State of California

 

(hereinafter referred to as
the “Indemnified Party”).

 

WHEREAS the Indemnified
Party has been elected and/or appointed a director and/or officer of the Indemnifier;

 

AND WHEREAS the
Indemnifier desires to indemnify the Indemnified Party in certain circumstances in respect of liability which the Indemnified Party
may incur as a result of such Indemnified Party acting as a director and/or officer of the Indemnifier;

 

NOW THEREFORE, IN
CONSIDERATION OF the premises and mutual covenants herein contained, and in consideration of the sum of One Dollar ($1.00)
paid by the Indemnified Party to the Indemnifier (the receipt of which is hereby acknowledged) and in consideration of the Indemnified
Party acting as a director and/or officer of the Indemnifier, the Indemnifier and the Indemnified Party do hereby covenant and
agree as follows:

 

		1.	Indemnification 

 

		(a)	To the full extent allowed by law, the Indemnifier agrees to indemnify and save harmless the Indemnified
Party, his or her heirs, successors and legal representatives from and against any and all damages, liabilities, costs, charges
or expenses suffered or incurred by the Indemnified Party, his or her heirs, successors or legal representatives as a result or
by reason of the Indemnified Party acting as a director and/or officer of the Indemnifier or by reason of any action taken or not
taken by such Indemnified Party in such capacity, including without limitation, any liability arising under applicable corporate
and securities legislation or otherwise, provided that such damages, liabilities, costs, charges or expenses were not suffered
or incurred as a direct result of such Indemnified Party’s own gross negligence, fraud, dishonesty or wilful default.

 

		(b)	The Indemnifier agrees:

 

		(i)	except in respect of an action by or on behalf of the Indemnifier to procure a judgment in its
favour, to indemnify the Indemnified Party and his or her heirs, successors and legal representatives against all costs, charges
and expenses, including an amount paid to settle an action where such settlement has been consented to by the Indemnifier, acting
reasonably, cause of action, claim or demand whatsoever or to satisfy a judgment, reasonably incurred by the Indemnified Party
in respect of any civil, criminal or administrative action or proceeding to which the Indemnified Party is made a party by reason
of such Indemnified Party acting as a director and/or officer of the Indemnifier, if:

 

		(1)	the Indemnified Party acted honestly and in good faith with a view to the best interests of the
Indemnifier; and

  

     

     

    

 

		(2)	in the case of a criminal or administrative action or proceeding that is enforced by monetary penalty,
the Indemnified Party had reasonable grounds for believing that the Indemnified Party’s conduct was lawful;

 

		(ii)	to indemnify the Indemnified Party and his or her heirs, successors and legal representatives in
respect of an action by or on behalf of the Indemnifier to procure a judgment in its favour, to which the Indemnified Party is
made a party by reason of such Indemnified Party acting as a director and/or officer of the Indemnifier against all costs, charges
and expenses reasonably incurred by the Indemnified Party in connection with the action if the Indemnified Party has fulfilled
the conditions set forth in Clauses 1.(b)(i)(1) and (2) set out above and if the Indemnifier obtains the approval of a court of
competent jurisdiction to grant such indemnity;

 

		(iii)	in the event that the approval of a court of competent jurisdiction is required to effect any indemnification
granted hereunder, the Indemnifier agrees to use best efforts to obtain the court’s approval to such indemnification provided
that the Indemnified Party has fulfilled the conditions set forth in Clauses 1.(b)(i) (1) and (2) herein;

 

		(iv)	notwithstanding Clauses 1.(b)(i) and (ii) above, to indemnify the Indemnified Party and his or
her heirs, successors and legal representatives in respect of all costs, charges and expenses reasonably incurred by the Indemnified
Party in connection with the defence of any civil, criminal or administrative action or proceeding to which the Indemnified Party
is made a party by reason of such Indemnified Party acting as a director and/or officer of the Indemnifier, if the Indemnified
Party:

 

		(1)	was substantially successful on the merits in such Indemnified Party’s defence of the action
or proceeding;

 

		(2)	fulfills the conditions set out in Clauses 1.(b)(i) (1) and (2) set out above; and

 

		(3)	is fairly and reasonably entitled to be indemnified; and

 

		(v)	to indemnify the Indemnified Party and his or her heirs, successors and legal representatives in
respect of all costs, charges and expenses reasonably incurred by the Indemnified Party in connection with defence of any threatened
civil, criminal or administrative action or proceeding or alleged wrongdoing (or settlement thereof with the consent of the Indemnifier
acting reasonably) against the Indemnified Party by reason of such Indemnified Party acting as a director and/or officer of the
Indemnifier.

  

    	 	- 2 -	 

     

    

 

		(c)	Without limiting the generality of the foregoing and notwithstanding anything contained herein:

 

		(i)	nothing in this Agreement shall be interpreted, by implication or otherwise, in limitation of the
scope of the indemnification provided in Subsections 1.(a) and (b) hereof; and

 

		(ii)	Subsection 1.(b) is intended to provide indemnification to the Indemnified Party to the fullest
extent permitted by applicable laws (the “Applicable Laws”) and, in the event that such Applicable Laws are
amended to permit a broader scope of indemnification (including, without limitation, the deletion or limiting of one or more of
the provisos to the applicability of indemnification), Subsection 1.(b) shall be deemed to be amended concurrently with the amendment
to the statute so as to provide such broader indemnification.

 

		2.	Prepaid Expenses

 

All costs, charges
and expenses reasonably incurred by the Indemnified Party in investigating, defending or appealing any civil, criminal or administrative
action or proceeding, actual or threatened, covered hereunder shall, at the request of such Indemnified Party, be paid by the Indemnifier
in advance as may be appropriate to enable the Indemnified Party to properly investigate, defend or appeal such action or proceeding,
with the understanding and agreement being herein made that, in the event it is ultimately determined as provided hereunder that
the Indemnified Party was not entitled to be so indemnified, or was not entitled to be fully so indemnified, that the Indemnified
Party shall indemnify and hold harmless the Indemnifier, and pay to the Indemnifier forthwith after such ultimate determination
such amount or the appropriate portion thereof, so paid in advance.

 

		3.	Other Rights and Remedies

 

Indemnification and
advance payment of costs, charges and expenses as provided by this Agreement shall not be deemed to derogate from or exclude any
other rights to which the Indemnified Party may be entitled under any provision of the Applicable Laws or otherwise at law, as
the same may be amended from time to time, this Agreement, any vote of shareholders of the Indemnifier, or otherwise, both as to
matters arising out of the Indemnified Party’s position as a director and/or officer of the Indemnifier, or as to matters
arising out of another capacity with the Indemnifier.

 

		4.	Notice of Proceedings

 

The Indemnified Party
agrees to give notice to the Indemnifier within seven days of being served with any statement of claim, writ, notice of motion,
indictment or other document commencing or continuing any civil, criminal or administrative action or proceeding against the Indemnified
Party, or receiving notice of any threatened civil, criminal or administrative action or proceeding or alleged wrongdoing against
the Indemnified Party, and in respect of which the Indemnified Party is entitled to be indemnified hereunder and the Indemnifier
agrees to give notice to the Indemnified Party in writing within seven days of (a) being served with any such statement of claim,
writ, notice of motion, indictment or other document commencing or continuing any civil, criminal or administrative action or proceeding
naming the Indemnified Party as a party, or (b) receiving notice of any such threatened civil, criminal or administrative action
or proceeding or alleged wrongdoing against the Indemnified Party.

 

The Indemnifier further agrees to promptly
retain counsel, who shall be reasonably satisfactory to the Indemnified Party, to represent the Indemnified Party in any such matter.

  

    	 	- 3 -	 

     

    

 

		5.	Right to Retain Other Counsel

 

In any such matter
the Indemnified Party shall have the right to retain other counsel to act on such Indemnified Party’s behalf, provided that
the fees and disbursements of such other counsel shall be paid by such Indemnified Party unless (a) such Indemnified Party and
the Indemnifier shall have mutually agreed to the retention of such other counsel, or (b) the named parties to any such action,
claim, demand or proceeding (including any added third, or interpleaded parties) include the Indemnifier and the Indemnified Party
and, in the written opinion of the Indemnified Party’s counsel, a copy of which is provided to the Indemnifier, representation
by the same counsel would be inappropriate due to actual or potential differing interests between them (including the availability
of different defences), in which event the Indemnifier agrees to pay the reasonable fees and disbursements of such counsel.

 

		6.	Indemnified Party to Cooperate

 

The Indemnified Party
agrees to give the Indemnifier such information and cooperation as the Indemnifier may reasonably require from time to time in
respect of all matters hereunder.

 

		7.	Notices

 

Any notice, document
or other communication required or permitted by this Agreement to be given by a party hereto shall be in writing and is sufficiently
given if delivered personally, or if sent by prepaid ordinary mail posted in Canada, or if transmitted by any form of telecommunication
(which is tested prior to transmission, confirms to the sender the receipt of the entire transmission by the recipient and reproduces
a complete written version of the transmission at the point of reception) to such party addressed as follows:

 

		(a)	if to the Indemnified Party, at:

 

[_____________]

[_____________]

[_____________]

 

Fax No.:
__________________

Email address:
_______________

  

		(b)	if to the Indemnifier, at:

 

[_____________]

[_____________]

[_____________]

 

Fax No.:

Email address:

  

Notice so mailed shall be deemed to have
been given on the third business day (“Business Day”) means a day other than a Saturday, Sunday or any day other
than Saturday or Sunday on which the principal commercial banks located at Toronto, Ontario are not open for business during normal
banking hours; after deposit in a post office or public letterbox). Neither party shall mail any notice, request or other communication
hereunder during any period in which Canadian postal workers are on strike or if such strike is imminent and may reasonably be
anticipated to affect the normal delivery of mail. Notice transmitted by a form of recorded telecommunication during normal business
hours on a Business Day (9:00 a.m. to 5:00 p.m. local time at the place of receipt) shall be deemed to have been given on the day
of transmission or, in the case of notice transmitted outside of normal business hours shall be deemed to have been given on the
first Business Day after the day of transmission; provided that immediately following such transmission such notice is given by
personal delivery. Notice delivered personally shall be deemed to have been given on the day it was delivered. Any party may from
time to time notify the others in the manner provided herein of any change of address which thereafter, until changed by like notice,
shall be the address of such party for all purposes hereof.

 

    	 	- 4 -	 

     

    

 

		8.	Severability

 

If any provision or
provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever (a) the validity,
legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all portions of any paragraph
of this Agreement containing such provisions held to be invalid, illegal or unenforceable that are not of themselves in whole invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby, and (b) to the fullest possible extent, the provisions
of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any provisions held
to be invalid, illegal or unenforceable, that are not of themselves in whole invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested by the provision which is held to be invalid, illegal or unenforceable.

 

		9.	Governing Law

 

The parties hereto
agree that this Agreement shall be construed and enforced in accordance with the laws of the Province of Ontario and the laws of
Canada applicable therein and shall be treated, in all respects, as an Ontario contract.

 

		10.	Modification and Waiver

 

No supplement, modification
or amendment of this Agreement shall be binding unless executed in writing by both parties hereto. No waiver of any of the provisions
of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall
such waiver constitute a continuing waiver.

 

		11.	Entire Agreement

 

This Agreement shall
supersede and replace any and all prior agreements (except any written agreement of employment between the Indemnifier and the
Indemnified Party, which shall remain in full force and effect), except to the extent augmented or amended hereby, between the
parties hereto respecting the specific subject matter set forth herein, and shall constitute the entire agreement between the parties
hereto in respect of the specific subject matter set forth herein.

 

		12.	Successors and Assigns

 

This Agreement shall
be binding upon and enure for the benefit of the Indemnifier and its successors and assigns and to the Indemnified Party and his
or her estates, executors, administrators, legal representatives, lawful heirs, successors and assigns.

 

		13.	Successor Legislation

 

Any references herein
to any enactment shall be deemed to be references to such enactment as the same may be amended or replaced from time to time.

  

    	 	- 5 -	 

     

    

 

		14.	Effective Date

 

For greater certainty,
notwithstanding the date of execution hereof, the indemnities provided herein shall be effective as against the Indemnifier as
of the date the Indemnified Party first was appointed or elected a director and/or officer of the Indemnifier until such date he
ceases to be a director and/or officer.

  

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

 

	Signed, sealed and	)	 
	delivered, in the presence of:	)	 
	 	)	 
	 	)	 
	 	)	 
	 	)	 
	Witness	)	 

 

	 	PETROTEQ ENERGY, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	I have authority to bind the Corporation.

  

    	 	- 6 -

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