Document:

Exhibit 10.10

 

HYDROCARBON
AND MINERAL LEASE AFFIRMATION

 

 

This
Lease Affirmation is made and entered into as of this 6th day of May, 2011, by and between
the William G. Gibbs (“Lessor”) and GreenRiver Resources, Inc. a Utah corporation, with respect to the Lease Agreement
(“Lease”) attached hereto as Exhibit A hereto.

 

Whereas, Lessor
and Lessee executed and entered into the attached Lease in October of 2009;

 

Whereas, Lessor and Lessee are
unable to locate the original signed Lease;

 

Whereas,
by this Lease Affirmation Lessor and Lessee hereby affirm that the Lease was executed
in October 2009 and remains in full force and effect;

 

NOW THEREFORE,
it is hereby agreed and affirmed as follows:

 

	l.		The Lease is hereby affirmed, and Lessor and Lessee hereby agree and represent that
it is was duly signed and notarized in October of 2009.

	2.		Lessor and Lessee further acknowledge that the rent due
and payable under the Lease has been, and will continue to be deferred until Lessee raises a minimum of $1 million, at which time
the outstanding amounts under the Lease will be due and payable.

	3.		The Lease is in full force and effect, and there are
no defaults thereunder.

 

In witness whereof, this
Lease Affirmation has been executed and delivered by the undersigned
as of the date first above written.

 

 

 

 

	 	 
	 	 

 

 

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HYDROCARBON AND MINERAL LEASE

This Lease is made and entered into as of the   day
of October, 2009, by and between the parties listed on Exhibit A hereto, with respect to the interests described therein,
as the Lessor, hereinafter referred to as “Lessor”, and GreenRiver Resources, Inc., a corporation organized
under the laws of the State of Utah, hereinafter referred to as “Lessee”.

 

SECTION ONE

TERM AND PURPOSE

(a) Grant of Lease. Lessor, in consideration of the
rents and royalties to be paid and the covenants and conditions to be kept and performed by Lessee as provided for in this instrument,
leases to Lessee the land, hydrocarbon and mineral interests in Carbon County, Utah, more particularly described in Exhibit A to
this Lease (the “Premises”), for the purpose of exploring for, extracting, mining, taking out, and removing by any
mining or extraction method, including open-pit mining and strip-mining, the merchantable tar sand, bitumen, oil and other hydrocarbon
products (collectively, “Oil Products”), together with any by-products derived in the process of extracting the foregoing
products therefrom (including, but not limited to, sand, gravel, timber, gold, titanium, silver and other minerals) which are,
or which subsequently may be found on, in, or under the land. Together with the right to: (1) make all excavations or drilling;
(2) construct on the Premises all buildings, extraction and separation facilities, openings, ditches, drains, railroads, roads,
pipelines, power facilities, tanks and other improvements that are or may become suitable or necessary for the mining and removal,
and/or separation and extraction, of the products from the Premises; and (3) cut and use the timber on the Premises, as may be
necessary for the usual purposes of the mining operations and for Lessee's own fuel; Lessee to exercise reasonable care to clear
up and remove all combustible debris to prevent any fires.

 

(b) Term. It
is agreed that this Lease shall remain in force for a primary term of six (6) years from this date (the “primary term”)
and if Lessee shall commence mining of Oil Products within the primary term or any extension of it, Lessee shall have the right
to continue mining and the term shall extend subsequently as long as Oil Products are continuously produced in commercial quantities
(Oil Products in amounts sufficient to produce 500 barrels of oil per day, on average) by Lessee from the Premises, provided,
however, that production may be discontinued or interrupted if such interruption is due to the inability of the Lessee to operate
the mine or facilities on a commercially reasonable basis due to temperatures, weather or snow-pack during the winter months.

 

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SECTION TWO

 

MINING EQUIPMENT AND IMPROVEMENTS

 

 

 Lessee may install engines and machinery, build roads, pipelines
and rail tracks, and do such other things on the Premises as may be necessary or proper to carry on the mining operations. Lessee
shall have the right to use, free of cost, gas, oil, and water produced on the land for Lessee's operation on the land. Lessee
shall have the right at any time up to 180 days after the termination of this Lease to remove all machinery and fixtures placed
on the Premises. The mining of the Oil Products by Lessee shall be done in a manner as is usual and customary in mining operations
of similar character. Lessee shall comply with all government regulations in its mining operations. Lessee shall not remove or
impair any roads, tracts, ditches, or improvements of a permanent nature made by Lessee after the termination of this Lease.

 

 

SECTION THREE

 

RENT AND ROYALTY

 

 

(a) Royalties.
Lessee shall pay to Lessor a Production Royalty on Net Returns from the sale of Oil Products. For purposes of this Agreement,
the term "Production Royalty on Net Returns" means an amount equal to 10% of the Market Value of Minerals sold by Lessee,
less the following, to the extent and only to the extent that they are incurred by Lessee prior to sale by Lessee of the Oil Products:
Operating Costs,Transportation Costs, Processing Costs, Value Added Costs and Extraction Taxes (collectively referred to herein
as "Costs and Taxes"). The term "Operating Costs" means expenses and costs actually incurred for the extraction
of the Oil Products from the ground and mining and handling of the Oil Products, including maintenance and repairs to equipment
and depreciation, but excluding reclamation expenses. The term"Transportation Costs" means the expenses and charges
actually incurred in transporting Oil Products, or their derivatives, from the mine to the refinery or other place of processing
and/or sale. Such costs shall include, but not be limited to, wages, rent, freight, shipment insurance, handling, port, delay,
demurrage, lighterage, tug, forwarding costs, and transportation and taxes. The term "Processing Costs" means the expenses
and costs actually incurred for separating, processing or other benefication of the Oil Products, including maintenance and repairs
to equipment and depreciation. The term "Value Added Costs" means the expenses and costs actually incurred in upgrading
the Oil Products for sale, including, refining, cracking, distillation, or by mixing or combining the Oil Products, or any of
them, with reagents or other materials, minerals, chemicals, compounds, hydrocarbons or other substances of any kind or nature
to achieve the products or goods which are then sold by Lessee, including maintenance and repairs to equipment and depreciation.
The term "Extraction Taxes" means sales, use, gross receipts, ad valorem, severance and other taxes due and payable
in respect to severance,production, removal, sale or disposition of the Oil Products, but excluding any taxes on net income. Oil
Products shall be deemed sold at the time the money is actually received by Lessee unless transferred by Lessee to an affiliate.
The price received for the Oil Products sold in an "arms length transaction" shall be presumed to be "Market Value"
unless rebutted by a preponderance of the evidence. For purpose of this paragraph, "arm's length transaction" means
a transaction that has been arrived at in the market place between independent, nonaffiliated persons with opposing economic interests
regarding that transaction.

 

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(b) Payment of Royalties. Calculations and payments of
the royalty shall be made quarterly, on the 15th day of each January, April, July, and October in each year,
commencing on the quarterly date following the first full or partial quarter in which Oil Products have been mined and
extracted and sold from the Premises. If the calculation of Net Returns from the sale of Oil Products for any calendar
quarter results in a negative number, no production royalty shall be payable with respect to that calendar quarter, but such
negative number shall not be used to offset Net Returns from the sale of Oil Products for any future calendar quarter
Payments shall be made to each Lessor at the address or addresses set forth on the signature page hereof, or as otherwise
directed by a Lessor in writing. Lessee shall, on a quarterly basis and in conjunction with each quarterly royalty payment,
transmit to Lessor an accurate statement of the amount of Oil Products removed and sold during the quarter for which
royalties are paid, and the amount of Costs and Taxes. The refinery receipts shall be prima facie evidence of the amounts so
sold during each quarter. Lessor may inspect and review the refinery receipts upon request at reasonable times. Any errors
shall be corrected accordingly. Lessor shall at all times have a lien on all Oil Products mined, and on all improvements
made, on the Premises as security for any unpaid balance of rents, royalties, or taxes due and payable.

 

 

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(c) Bonus and Rent. Beginning January 1, 2009, and annually
thereafter, as rent under this Lease, Lessee shall pay to Lessor the amount of $7,965. Any lawsuit against development of the property
shall toll any termination right on the part of Lessor, so long as Lessee is diligently pursuing the lawsuit. Rent due hereunder
shall be excused for any year as to which the royalties paid hereunder for the prior year exceed the rental amount.

 

(d) Apportionment of Royalties and Rents. (1) The stated
amounts of royalties to be paid by Lessee hereunder are based upon a 100-percent interest in and to the mineral estate as to all
of the Premises. If any party comprising Lessor owns less than the interest in all of the Premises described in the preceding sentence,
all royalty payments to be made by Lessee to such party hereunder shall be reduced in the same proportion thereof as the interest
of such party in the Premises bears to the interest described for such party in the preceding sentence. (2) The stated amounts
of rents to be paid by Lessee hereunder are based upon the undivided interests in the mineral estate as to all of the Premises
stated to be owned by each party comprising Lessor as set forth in Exhibit A attached hereto. If any party comprising Lessor owns
less than the interest in all of the Premises described in the preceding sentence for such party, all rent payments to be made
by Lessee to such party hereunder shall be reduced in the same proportion thereof as the interest of such party in the Premises
bears to the interest described for such party in the preceding sentence.

 

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SECTION FOUR

 

TERM EXTENSION

 

If mining of Oil Products is not commenced on the land on or before
the 6th anniversary of the commencement date of this Lease in commercial quantities (Oil Products in amounts sufficient to produce
500 barrels of oil per day, on average, provided, however, that production may be discontinued or interrupted if such interruption
is due to the inability of the Lessee to operate the mine or facilities on a commercially reasonable basis due to temperatures,
weather or snow-pack during the winter months), this Lease shall terminate as to both parties, unless the failure to commence
operations is excused by the force majeure provisions of Section 14(e) below, in which case the term of this Lease shall be extended
in accordance with the provisions of said Section 14(e)..

 

SECTION FIVE

 

EXPLORATION AND DEVELOPMENT COMMITMENT

 

 

Lessee agrees to
expend or cause to be expended during the term of this Lease, a minimum of $150,000 per year on the development of the
Premises, until commercial production of Oil Products (Oil Products in amounts sufficient to produce 500 barrels of oil per
day, on average, provided, however, that production may be discontinued or interrupted if such interruption is due to the
inability of the Lessee to operate the mine or facilities on a commercially reasonable basis due to temperatures, weather or
snow-pack during the winter months) is reached. For this purpose, the following expenditures would qualify: expenditures on
prospecting and searching for or production of Oil Products on, in or under the property, drilling, examining, measuring and
sampling the deposit of bitumen, when found, to gain knowledge of its size, shape, position and characteristics to determine
the value thereof, research, engineering, test work, feasibility studies and other development and construction work directly
benefiting the property, work performed on mineral lands contiguous to the property, legal fees, engineering and consulting
fees and salaries and other expenses relating to Lessee’s personnel directly involved in the project and all other
similar activity or work performed with respect to the property or its development, and fees and expenditures on other
projects which benefit the Sunnyside project or reduce the expenditures which would otherwise be incurred in connection with
the Sunnyside project. All expenditures for exploration and development in excess of the respective minimums required in each
year shall be applied to the exploration commitment described in the next succeeding year or years.

 

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SECTION
SIX

 

PROPERTY TAXES

 

 

Lessee shall pay
promptly before delinquency all property taxes and assessments, that may be levied or assessed during the term of this Lease
upon the Premises. All such taxes for the year in which this Lease terminates shall be prorated between Lessor and Lessee,
except that neither Lessor nor Lessee shall be responsible for the payment of any taxes which are based upon production from
the Premises accruing solely to the other party. Lessee shall have the right to contest, in the courts or otherwise, in its
own name or in the name of Lessor, the validity or amount of any such taxes or assessments, if it deems the same unlawful,
unjust, unequal or excessive, or to take such other steps or proceedings as it may deem necessary to secure a cancellation,
reduction, readjustment or equalization thereof, before it shall be required to pay the same. Lessee shall not permit or
suffer the Premises or any part thereof to be conveyed, or title lost to Lessor, as the result of nonpayment of such taxes or
assessments. Lessee shall upon request furnish to Lessor duplicate receipts for all such taxes and assessments when paid.
Lessee shall not be liable for any taxes levied on or measured by income, or other taxes applicable to Lessor, based upon
payments under this Lease. Nothing in the foregoing shall be construed to obligate Lessee to pay such portion of any tax as
is based upon the value of improvements, structures or personal property made, placed and used on any part or parts of the
Premises by or for Lessor or by an owner or lessee of surface rights other than Lessee after the date hereof. If Lessor
receives tax bills or claims which are the responsibility of Lessee hereunder, the same shall be promptly forwarded to Lessee
for appropriate action.

 

 

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SECTION SEVEN

 

TERMINATION

 

 

(a) Termination by Lessor.
In the event of any default by Lessee in the performance of its obligations hereunder, including all obligations to make payments
of money to Lessor, Lessor shall give to Lessee written notice specifying the default. If (a) a default involving matters other
than the payment of money to Lessor is not cured within sixty (60) days after Lessee has received the notice, or if Lessee has
not within the time begun action to cure the default and does not diligently prosecute such action to completion, or (b) if a default
involving the payment of money to Lessor is not cured within fifteen (15) business days after Lessee has received notice of non
payment, Lessor may terminate this Lease by delivering to Lessee written notice of such termination, subject to Lessee’s
right to remove its property and equipment from the Premises as hereinafter provided. Lessor shall have no right to terminate this
Lease except as set forth in this paragraph.

 

(b) Termination by Lessee.
Lessee shall have the right, at any time, to terminate this Lease by giving 180 days' written notice to Lessor, either in person
or by mail addressed to Lessor at the address given in this Lease, and on payment of the rent, royalty and other sums as may be
due, this Lease shall be deemed terminated. When this Lease terminates, regardless of the cause, Lessee shall quietly and peacefully
surrender possession of the Premises to Lessor or Lessor's agents, and Lessee shall enter, or cause to be entered, a certificate
of the termination of this Lease in the proper books of record in Carbon County, Utah, and record them, as may be necessary to
clear the record title and divest Lessee of all rights and title given or acquired under this Lease.

 

 

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SECTION EIGHT

 

MINING

 

 

(a) Mining Practices. All
of Lessee’s operations hereunder shall be conducted in accordance with accepted practices of the mineral industry, and in
compliance with all applicable local, state and federal laws and regulations. It shall rest in the sole discretion of the Lessee
whether and in what manner it shall mine, remove, transport, and deliver Oil Products to a processing plant or refinery for physical,
chemical or other treatment or shall treat the same in place. Whenever Lessee deems it necessary or advisable, Lessee may discontinue
or resume exploration, development, mining and production operations from time to time during the term hereof, so long as it meets
its obligations hereunder.

 

(b) Adjacent Property Mining
Activities. Lessee is hereby granted the right, if it so desires, to mine and remove Oil Products, and such other materials
as are incident thereto, from the Premises through or by means of shafts, openings or pits which may be made in or upon adjoining
property owned or controlled by Lessee, to the extent that Lessor can grant such rights. Lessee may, if it so desires, use the
Premises and any shafts, openings and pits therein for the mining, removal, treatment and transportation of Oil Products and materials
from adjoining property, or for any purpose connected therewith. In addition, the operations of Lessee upon the Premises and upon
any and all other adjoining lands to which Lessee has mining rights, may be conducted as a single mining operation, to the same
extent as if all such properties constituted a single tract of land. Nothing herein shall relieve Lessee from its obligations for
payments or reports as set forth in this Lease.

 

(c) Stockpiling.
Lessee shall have the right, at any time during the term hereof, to stockpile any Oil Products or other materials mined or
produced from the Premises at such place or places as Lessee may elect, either upon the Premises or upon any other adjoining
lands owned or controlled by Lessee, its successors and assigns. The rights and liens of Lessor in and to any such Oil
Products stockpiled on such other lands shall not be divested by the removal thereof from the Premises but shall be the same
in all respects as though such materials had been stockpiled on the Premises. The stockpiling of Oil Products from the
Premises on such other lands shall not be deemed a removal or shipment thereof requiring payment in respect of Lessor’s
interest.

 

 

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(d)Treatment. Lessee shall have the right, but shall
not be required, to process, separate, extract, beneficiate, concentrate, smelt, refine, leach and otherwise treat, in any manner,
any Oil Products and other materials mined or produced from the Premises and from other adjoining lands. Such treatment may be
conducted wholly or in part at a plant or plants established or maintained on the Premises or on such other lands. The tailings
and residue from such treatment shall be deemed waste and may be deposited on the Premises or on such other lands. Lessor shall
have no right, title or interest in said tailings or residue; provided, however, that any said tailings or residue remaining on
the Premises or on such other lands for a period of sixty (60) days after the date on which this Lease has expired, or has been
terminated by Lessee as to all of the Premises, shall be deemed abandoned by Lessee and thereupon may be claimed by Lessor, if
and only if Lessor so elects. Nothing contained herein shall be construed to relieve Lessee from its responsibility for satisfaction
of all obligations with respect to environmental protection laws, mined land reclamation laws or other applicable federal, state
or local laws and regulations.

 

(e)Overburden Deposits. Waste, overburden, surface stripping
and other materials from the Premises may be deposited on or off the Premises, to the extent Lessor can grant such right and subject
to all applicable local, state and federal laws and regulations. Such materials from other adjoining lands may be deposited on
the Premises only if the same will not interfere with mining or oil and gas operations on the Premises.

 

(e) Inspection Rights of Lessor. Lessor reserves to itself
and its agents the right, at any time, to enter the Premises or any part of it, to inspect and survey the Premises, and
to measure the quantity of Oil Products that may be in or on the Premises or that shall have been mined or removed from the Premises,
without unnecessarily or unreasonably hindering or interrupting the work or operations of Lessee.

 

 

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SECTION NINE

 

RECORDS

 

Lessee shall keep books of account, in accordance with generally
accepted accounting principles, consistently applied, showing the amount of Oil Products shipped and sold, and the amount of money
received from the sale of the Oil Products. The books of account shall be open at all reasonable times to Lessor and its representatives.
Lessor or its authorized agents shall have a right to audit and inspect Lessee’s accounts and records to verify the calculation
of the payments to Lessor hereunder, which right may be exercised as to each payment at any reasonable time during a period of
two (2) years from and after the date on which the payment was made by Lessee. If no such audit is performed during such period,
such accounts, records and payments shall be deemed to be true, accurate and correct.

 

SECTION TEN

 

EFFECT OF AGREEMENT

 

The covenants, agreements, and conditions of this Lease shall run
with the land, and shall bind the heirs, legal representatives, successors, and assigns of all parties to this Lease.

 

SECTION ELEVEN

PROPORTIONATE REDUCTION

 

Royalties and rents provided for in this Lease shall be
subject to proportionate reduction in accordance with the provisions of Section 3(d) above.

 

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SECTION TWELVE

 

DIVIDED INTERESTS

 

 

If the Premises are now or later shall be owned in severalty or
in separate tracts, the Premises, nevertheless, shall be developed and operated as one lease and all royalties accruing under this
Lease shall be treated as an entirety and shall be divided among and paid to such separate owners in the proportion that the acreage
owned by each separate owner bears to the entire leased acreage. If, however, the Premises consist of two or more non-abutting
tracts, this section shall apply separately to each non-abutting tract, and if a portion of the Premises is later consolidated
with other lands for the purpose of operating the consolidated tract as one lease, this section shall be inoperative as to the
portion so consolidated.

 

 

SECTION THIRTEEN

 

WARRANTY OF TITLE

 

 

Each of the parties comprising Lessor, to the extent and only to
the extent of the ownership interest set forth for that party on Exhibit A attached hereto, warrants and agrees to defend the title
to the lands described in this Lease against burdens and claims arising by, through or under such party, but not otherwise. Lessor
agrees that Lessee shall have the right at any time to redeem, for Lessor, by payment of any mortgage, taxes, or other liens on
the lands in the event of default of payment by Lessor, and be subrogated to the rights of the holder, and Lessor, on behalf of
Lessor and the heirs, successors, and assigns of Lessor, surrenders and releases all rights of dower and homestead in the Premises
described in this Lease, insofar as the right of dower and homestead may in any way affect the purposes for which this Lease is
made.

 

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SECTION FOURTEEN

 

GENERAL CONDITIONS

 

 

(a) Attorneys' Fees. If Lessor or Lessee shall commence an
action against the other arising out of or in connection with this Lease, the prevailing party shall be entitled to recover its
costs of suit and reasonable attorneys’ fees.

 

(b) Notices. All notices and demands, which may or are to
be required or permitted to be given hereunder shall be in writing. All notices and demands shall be sent by receipted hand delivery,
by confirmed facsimile, by United States mail, postage prepaid, or by an express delivery service which maintains records of deliveries,
freight prepaid, addressed to Lessor or Lessee, at the address or addresses set forth on the signature page hereof.

 

(c) Indemnity. Each party shall hold harmless, reimburse,
indemnify, and defend the other party from and against any and all losses, injury, obligations, claims, damages, judgments, and
injuries of any nature resulting from, arising out of, or related in any respect to the falsity or inaccuracy of any representation
or warranty made by the indemnifying party and/or obligations arising under or in connection with this, including without limitation
reasonable attorneys’ fees, costs, and expenses of any nature incurred as a result of or related to such false or inaccurate
representations and/or warranties.

 

(d) Governing Law. This Lease shall be governed by and construed
in accordance with the laws of the State of Utah.

 

(e) Force Majeure. Lessee shall not be liable for failure
to perform any of its obligations hereunder (except for payments which have become due to Lessor) during periods in which performance
is prevented by any cause reasonably beyond Lessee’s control (except for payments of money), which causes hereinafter are
called “force majeure”. For purposes of this Lease, the term “force majeure” shall include, but shall not
be limited to, fires, floods, windstorms and other damage from the elements, strikes, riots, action of governmental authority,
litigation, acts of God and acts of the public enemy. The performance by Lessee of its obligations hereunder shall be suspended,
and the duration of this Lease shall be extended, for a period equal to the period for which performance is reasonably suspended
by reason of force majeure. All periods of force majeure shall be deemed to begin at the time Lessee stops performance hereunder
by reason of force majeure. Lessee shall notify Lessor of the beginning and ending date of each such period.

 

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(f) Paragraph Headings. The paragraph headings as to the
contents of particular paragraphs herein are inserted only for convenience and are in no way to be construed as part of such paragraph
or as a limitation on the scope of the particular paragraph to which they refer.

 

(g) Assignment; Change of Ownership. Lessee and Lessor may
sell, convey, assign or transfer their rights and interests in this Lease in whole or in part without the prior written consent
of the other party; provided that the assignor assumes all obligations of the respective party, in writing, and furnishes a copy
of such assignment to the Lessee or Lessor, as the case may be. However, no such assignment shall operate to relieve the assignor
of any liability or obligation under this Lease which arose prior to such assignment. In addition, no change of ownership of the
Premises shall be binding upon Lessee, whether Lessee has actual or constructive knowledge of such change of ownership, until thirty
(30) days after Lessee shall have been furnished by certified or registered United States mail at Lessee’s office address
as set out herein with a certified copy of the recorded instrument or instruments satisfactory in the opinion of Lessee to evidence
such change of ownership and to establish the right, title or interest of the claiming party and the extent thereof.

 

(h) Benefit of Agreement;
Recording. The covenants and agreements contained in the within Lease shall apply to, inure to the benefit of, and be binding
upon the parties hereto and upon their respective successors in interest and legal representatives, subject to the restrictions
contained herein on assignments. If requested by Lessee or Lessor, the parties hereto shall execute a memorandum or short recording
counterpart of this Lease, which counterpart shall be in a form sufficient to constitute notice of this Lease to third parties
under the laws of the state in which the Premises are located, but which counterpart shall not contain the amounts or rates of
payment hereunder, or other terms of this Lease which Lessee or Lessor may elect not to disclose of record. The execution and
recording of the above recording counterpart shall not limit, decrease or increase, or in any manner affect, any of the terms
of this Lease, or any rights, interests or obligations of the parties hereto.

 

 

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(i) No Interruption of Operations. Disputes or differences
between the parties hereto shall not interrupt performance of this Lease or the continuation of operations hereunder unless a continuation
of operations would cause irreparable harm to the Lessor. In the event of any dispute or difference, and subject to the foregoing,
operations may be continued, and settlements and payments may be made hereunder in the same manner as prior to such dispute or
difference, until the matters in dispute have been finally determined between the parties, and thereupon such payments or restitutions
shall be

made as may be required under the terms of the settlement or final
determination of the dispute.

 

(j) Waiver. The failure of a party to insist upon strict
performance of any of the terms, covenants, conditions or agreements contained herein shall not be deemed a waiver of any rights
or remedies that said party may have, and shall not be deemed a waiver of any subsequent breach or default in the performance of
any of the terms, covenants, conditions or agreements contained herein.

 

IN WITNESS WHEREOF, this Lease has been executed and delivered
by the undersigned as of the date first above written.

 

	 	__________________________

Notary Public
	 	Residing at: 
	 	 
	(SEAL)	My commission expires ____, 200 _
	 	 
	 	 
	 	 
	 	 
	 	Lessee:
	 	 
	 	 
	 	GreenRiver Resources, Inc.
	 	 
	 	By: _____________________
	 	Its: _____________________

 

 

 

 

STATE  OF  UTAH

 

COUNTY OF SALT LAKE

 

The foregoing instrument was acknowledged before me
this ____ day of _____________, 2009 by William G. Gibbs, known to me to be the person described in and who executed the
within and foregoing instrument acknowledged to me that he executed the same.

 

 

	 	_______________________________

Notary Public
	 	Residing at: 
	 	 
	(SEAL)	My commission expires _________, 200_
	 	 
	 	 

 

 

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EXHIBIT A

 

Legal Description and
Ownership Interests

 

LAND DESCRIPTION:

 

 

 

Township 14 South, Range 14 East, SLM Section
3: SW/4

Section 10: E/2, NW/4

 

 

 

Containing 640.00 acres, more or less

 

 

 

OWNERSHIP INTERESTS:

 

William G. Gibbs - undivided 5-percent ownership of mineral
estate.

 

 

    	16Exhibit 10.12

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

 

 

 

LICENSE,
DEVELOPMENT AND ENGINEERING AGREEMENT

THIS LICENSE, DEVELOPMENT
AND ENGINEERING AGREEMENT (“Agreement”) is made and entered into as of January 1,
2012 (the “Effective Date”) by and between UNIVERSAL OIL RECOVERY CORP ("UOR"), SRS INTERNATIONAL
(“SRS”) and AMERICAN SANDS ENERGY CORP (“ASEC”) (hereinafter referred to individually as a “Party”
and collectively as the “Parties”).

RECITALS

		A.	WHEREAS, UOR owns the exclusive trade-secret and know-how rights to make, use and sell a proprietary
Solvent (the “UOR Solvent”), and has contracted with SRS to design and build a proprietary solids/liquids separation
and solvent recovery facility.

		B.	WHEREAS, SRS has confirmed the effectiveness of the UOR Solvent to extract bitumen from tar sands
and oil sands under laboratory test and demonstration protocols, with an efficiency exceeding 99%, and are confident in their design
of a scaled-up, 250-ton per hour (6,000 tons of tar sand ore per day), low-impact, low-energy, continuous-flow, rock/sand/soil-cleaning
and bitumen-recovery process (the “UOR Process”) that:

		a.	Uses low-temperature heat to operate more cost-effectively

		b.	Consumes no local water supplies already stressed by regional drought

		c.	Produces no liquid-waste or tailing ponds

		d.	Requires no special modification equipment (like other prior art solvents and oil extraction processes
previously offered to SRS over the years by other solvent vendors competitive to UOR).

		C.	WHEREAS, SRS has designed and built a mobile, one-ton-per-hour, Oil Separation and Solvent Recovery
Machine (the “SRS Machine”) that, in conjunction with the UOR Solvent, will demonstrate the feasibility and efficiency
of the UOR Process, and is willing to demonstrate the UOR Process to prospective investors, customers and government regulators
in the tar sands and oil sands businesses.

 

		D.	WHEREAS, ASEC owns real estate property or mining leases in the State of Utah that contain mineable
tar sands (the “Utah Property”), and is desirous of engaging UOR and SRS to provide comprehensive tar sand solids/liquid
separation consulting, equipment design, Solvent formulation, testing and process demonstration services to ASEC.

 

		E.	WHEREAS, UOR, SRS and ASEC are desirous of entering into this Agreement whereby UOR/SRS will provide
the UOR Solvent and SRS Machine to demonstrate the processing of ASEC-provided Tar Sands materials from ASEC’s Utah Property,
and based on a successful demonstration, to design and construct a larger facility that will process approximately 6,000 tons of
tar sand ore per day, with additional capacity added based on the success of such facility.

NOW, THEREFORE, in consideration
of the mutual covenants and agreements set forth in this

    	1

    	 

    

 

 

Agreement, the parties agrees as follows:

 

		1.	PURPOSE AND DEFINITIONS

(a)Purpose of
this Agreement. This Agreement is entered into for the purpose of ASEC developing tar sands oil sands and oil shale using certain
technology licensed hereunder.

(b)Definitions.

“3000 BPD
Facility” shall have the meaning set forth in Section 6.1(a).

“ ASEC Input
Materials” has the meaning set forth in Section 2.

“Confidential
Information” means information (i) disclosed in tangible form that is clearly marked or identified as confidential or proprietary
at the time of disclosure or (ii) disclosed in non-tangible form, identified as confidential or proprietary at the time of disclosure,
and summarized sufficiently for identification and designated as confidential in a written memorandum sent to the receiving Party
within thirty (30) days after disclosure. Confidential Information includes, without limitation, the Licensed Technology including
business, financial or technical data, machine-readable or interpreted information, information contained in physical components,
mask works or artworks, or combinations of publicly available information that are not publicly available in such combined form.
 . 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
person, whether through ownership of voting securities, through the right or power to appoint a majority of the board of directors,
by being the general (or managing) partner or controlling the general (or managing) partner, by contract or trust instrument, or
otherwise, and “Controlled” has a corresponding meaning.

“Definitive
Agreement” means an agreement providing for the terms and conditions of utilization of the Licensed Technology in connection
with project(s) involving a third party which satisfy (or will satisfy) the Criteria set forth in Section
4.(a), whether or not such projects are formed as of the date of such Definitive Agreement.

“Designated
Party” shall have the meaning set forth in Section 4 (a).

“Designated
Project” shall have the meaning set forth in Section 4 (a).

“Designated
Property” or “Property” shall have the meaning set forth in Section 4 (a).

“Intellectual
Property Rights” means all patents and patent rights (including design patents, patents pending and technology covered by
a patent application), copyrights and copyright registrations and trade secrets.

“Invention(s)”
or “invention(s)” means any idea, design, concept, technique, invention, discovery or improvement, whether or not patentable.

“License
Term” is defined in Section 6.

“Licensed Technology”
means the methods and processes through which bitumen, kerogen or other oil products are separated or extracted from matter or
substances typically referred to as tar sands, oil sands or oil shale through the use of chemicals, and it includes all aspects
which are part of or ancillary to such methods and/or processes such as equipment or catalyst, as developed by or on behalf of
UOR or SRS, together with any modifications, improvements, enhancements or derivatives in respect of thereto.

    	2

    	 

    

 

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

  

“Products” means any and all products, including water, sand, bitumen, kerogen, oil, and heavy
metals, if any, that are extracted and recovered using the UOR Process and offered for sale.

“SRS Machine” has the
meaning set forth in paragraph C of the Recitals.

“Territory”
means (i) the State of Utah, and (ii) any geographic area owned, licensed or to which a third party has rights to develop oil sands,
tar sands or oil shale, if such project is a Designated Project in accordance with Section 4.

“UOR Process”
has the meaning set forth in paragraph B of the Recitals.

			“UOR Solvent” means
a proprietary solvent developed by UOR that extracts bitumen from tar sands and oil sands under laboratory tests and demonstration
protocols, on a 99+% efficiency basis, and that works as a part of and in combination with the SRS Machine, the 3000 BPD Facility
and with other facilities designed using the Licensed Technology.

 

		2.	DEMONSTRATION OF srs machine and uor process and solvent

UOR
will operate the SRS Machine for demonstration of the UOR Process for third party investors and customers of ASEC, beginning on
March 12, 2012, who are desirous of evaluating the UOR Process on ASEC’s own or other
parties’ Tar Sands or Oil Sands materials (the “ASEC Input Material”) to be processed through the SRS Machine
at a demonstration rate of approximately 1-ton per hour:

 

2.1ASEC
OBLIGATIONS

(a)ASEC
shall supply a minimum of 10-tons of the tar sand ore chosen by ASEC to be tested and processed through the SRS Machine, including
copies of all laboratory tests and geological information regarding the chemical and elemental make-up of the ASEC Input Materials
currently in ASEC’s possession. It is anticipated that ASEC may have UOR/SRS run up to 250 tons of tar sand ore through
the SRS Machine during the 30 day test phase. ASEC will retain title to the oil, sand and water products of the separation process,
of which UOR will be allowed to retain samples of adequate size for detailed testing.

(b)ASEC
will supply the ASEC Input Materials to UOR at the location designated by it on a date mutually agreed .

(c)ASEC
shall pay to UOR an equipment rental fee of $*, which will secure demonstration/operation of the SRS Machine and URS Process for
a consecutive 30 day period beginning *. The fee shall be paid as follows:

1.
$* on signing of this Agreement

2.
$* on February 1, 2012

3
..$* on acceptance of the SRS Machine as set forth in Appendix A1.9 hereof.

(d)
Beginning *, ASEC will pay UOR an Operational Fee of $25,000 per month, such fee to cover UOR’s costs for UOR Solvent preparation,
solvent blending, optimization, handling, testing and staff costs, for ASEC and in connection with any lab work or testing requested
by * (with respect to *, only through the demonstration period set forth above)

(e)ASEC
shall make available, at its cost, its engineering and other personnel, to collaborate in the design and testing of the SRS Machine
and UOR Process based on the most current design of the SRS Machine being completed for testing in March, 2012.

    	3

    	 

    

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

2.2UOR/SRS OBLIGATIONS.
UOR or SRS, as the case may be, shall provide to ASEC as follows:

(a)SRS will design,
build and locate the SRS Machine in accordance with the requirements set forth in Exhibit A, which is incorporated herein by reference.

(b)UOR
shall conduct independent laboratory testing of ASEC’s Input Materials to generate a baseline for “before” and
“after” comparisons of the water, bitumen, sand and other solids materials expected to be produced by the SRS Machine
demonstration. Based on independent laboratory confirmation of the make-up of ASEC Input Materials,
UOR shall improve, customize or finalize formulation of the UOR Solvent chosen by UOR for mixing with the ASEC Input Materials.

(c)UOR shall
conduct a thorough testing of ASEC’s Input Materials being mixed with the UOR Solvent, so as to establish a baseline for
separation of the water (if any), sand and bitumen materials under ideal lab conditions.

(d)UOR will
provide to ASEC digital copies of all relevant laboratory test data for inclusion in Computer Models shared by UOR and ASEC to
simulate and optimize the UOR bitumen-extraction process for scaled-up design and operation.

(e)UOR will
provide ASEC access to the SRS Machine and share with ASEC personnel all designs, drawings, specifications, formulations and other
engineering information with respect to the SRS Machine, UOR Solvent and UOR Process.

(f)UOR/SRS
will use best efforts to commence operation and demonstration of the SRS Machine for third party investors and potential customers
of ASEC on *. The start-up and operating times shall be mutually agreed between ASEC, UOR and SRS, but at ASEC’s request
shall be for and up to 24 hours of continuous operation per day during the test period.

(g)UOR shall
be responsible for obtaining all permits required to operate the SRS Machine.

(h)UOR/SRS
shall share all test results and data from such separation of the ASEC Input Materials into its constituent water (if any), bitumen
and sand materials.

(i)UOR shall allow ASEC to
invite its personnel and invitees in person to see the SRS Machine operate as it extracts oil or bitumen from the ASEC Input Materials
provided by ASEC, and shall allow ASEC, and its designees on a case-by-case basis (upon becoming a Designated Party or Property
and signing appropriate confidentiality agreements), to: 

	i.		take videos of the SRS Machine for promotional purposes

 

	ii.		receive copies of any and all test results and operational
data from use of the SRS Machine to confirm the cost-efficiency of the Machine and recovery of the UOR Solvent.

 

	iii.		take sufficient samples of cleaned sand recovered from
the ASEC Input Materials by the UOR Process and SRS Machine for independent testing by ASEC or its designees.

    	4

    	 

    

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

 

	iv.		take sufficient samples of Bitumen recovered from the
ASEC Input Materials by the UOR Process and SRS Machine for independent testing by ASEC or its designees.

 

	v.		take sufficient samples of Solvent post cleaned sand and
post Bitumen recovery to analyze for contaminants and degradation versus the pure solvent by the UOR Process and SRS Machine for
independent testing by ASEC or its designees.

 

		(j)	The operation of the SRS Machine will not knowingly be in violation of any statute, rule, regulation, decision or order of
any governmental agency or body or any court, relating to the use, disposal or release of hazardous or toxic substances or relating
to the protection or restoration of the environment or human exposure to hazardous or toxic substances.

(k)Upon execution of this Agreement, UOR will make
available to the COO/Chief Technology Officer of ASEC (currently Robin Gereluk), the Licensed Technology, the results and details
of any and all computer simulations and design calculations performed by SRS/UOR on the Licensed Technology, and the design, engineering
and other specifications and drawings of the SRS Machine, subject to Mr. Gereluk agreeing to be bound by the confidentiality provisions
of this Agreement. * Notwithstanding the foregoing, ASEC is agreed that all sub-licenses or agreements of any kind with a Designated
Party or any third party will stipulate that neither party will have any right to know or have disclosed to it the chemical formulation
and components of the UOR Solvent, and that such information is a trade secret, confidential and proprietary to UOR.

		3.	TECHNOLOGY LICENSE

		(a)	License Grant. In consideration of the payments made under paragraphs 2.1(c) and 2.1(d) and
subject to the terms and conditions herein, UOR and SRS, as the case may be, hereby grants to ASEC, and ASEC accepts, (i) an exclusive,
nontransferable license to use the Licensed Technology during the License Term in the Territory, to produce, treat and otherwise
develop bitumen, kerogen and other oil products from oil sands, tar sands and oil shale, and (ii) to act as UOR’s “Authorized
Agent” in representing the UOR Technology and business opportunities to prospective investors and tar sands, oil sands and
oil shale property owners and lessees.

		(b)	Limitations on Use.

	i.		The Licensed Technology shall be used by ASEC only within the scope of the License
Grant in Section 3(a).

	ii.		The Licensed Technology may only be separately or independently licensed or sublicensed
by ASEC to a third party in accordance with Section 4.

		(c)	No Other Rights. No other rights are granted hereunder, by implication, estoppel, statute or
otherwise, except as expressly provided herein.

		(d)	No Offer for Sale. ASEC hereby acknowledges and agrees that at no time has the Licensed Technology
been offered for sale to ASEC.

    	5

    	 

    

 

 

		4.	DESIGNATED PROJECT

(a)Each
project which satisfies the following criteria is a “Designated Project”,
and becomes part of the Territory hereunder:

(i) the project must satisfy
either of the following:

(A) With respect
to the development of a property by ASEC or in which ASEC will participate (“Designated Property”), ASEC must designate
to UOR the property or properties to be developed (“Property”), together with the other parties involved, if any, such
designation to include;

(1) The name of the party, in the
case of a Property being developed with a third party;

(2) The location of the property/project,
with a description of the foregoing to include location, type of hydrocarbon extracted, and general scope of the project; or

(B) With respect to the licensing
or sub-licensing of the Licensed Technology, UOR Process and/or UOR Solvent to a third party (“Designated Party”),
ASEC shall designate to UOR:

(1) The name of the party.

(2) The proposed location
of the property/project, with a description of the foregoing to include location, type of hydrocarbon extracted, and general scope
of the project.

(ii) UOR does not have a pre-existing
relationship with the Designated Party. If UOR has a pre-existing relationship with a Designated Party, it will notify ASEC within
three (3) business days from receipt of the designation notice of such relationship.; and

(iii) ASEC and the Designated Party
enter into a Definitive Agreement with respect to the Designated Project within 120 days from the date of the designation notice
received by UOR, unless extended by mutual agreement.

(collectively subparagraphs (a)(i)-(iii)
above are herein referred to as the “Criteria”)

(iv) The foregoing Criteria
must be satisfied as of the date of the notice.

(b) From and after the Determination
Date in respect of a Designated Project, ASEC shall not lose any rights, or be required to transfer, convey or otherwise divest
itself of any right or interest, in respect of such Designated Project solely by virtue of the fact that the Criteria may cease
to be satisfied in respect of such Designated Project in question, after the notice date; provided that at the time the Definitive
Agreements are signed with respect to such Designated Project, ASEC and/or the Designated Party have the financial ability/strength
to develop such Project. Upon request, ASEC shall provide to UOR its financing plans or financial statements for a Designated Property,
or the financial statements of a Designated Party, which shall show reasonable likelihood, in each respective case, of the Designated
Project to be financed.

    	6

    	 

    

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

(c) In connection with any Designated Project under this Section 4, ASEC shall pay license and royalty fees
to UOR with respect to such Designated Project as follows:

(i) In
connection with a Designated Project where ASEC licenses/sub-licenses the Licensed Technology to a Designated Party and receives
license and royalty fees, * percent (*%) of the amounts so received
by ASEC, to include the following;

 (A) *

 (B) *

 (C) *

			(ii) The Designated Project Royalty shall be a minimum of $* per year.

(iii) ASEC will use its best efforts
to negotiate with each Designated Party for the highest possible Royalty payments

(vi)
ASEC acknowledges that as a condition of becoming a Designated Project or entering into a sub-Licensing arrangement with a Designated
Party, such Designated Project or Party must purchase the UOR Solvent from UOR at UOR’s delivered cost, *. However, if UOR
is not able to procure said solvents, it will make available to ASEC the solvent names and it will work to source said material
from non-North American sources.

(vi) In connection with a Designated
Property where ASEC is jointly developing the project, whether as an equity partner, shareholder, joint venturer or co-owner, ASEC
or the operator of such Designated Project, ASEC shall pay*.

(e) Calculations and payments of
Designated Project Royalties shall be made as of the end of each calendar quarter, and shall be payable, on the 15th day
of each January, April, July, and October in each year, commencing on the quarterly date following the first full
or partial quarter in which Products have been sold. If the calculation of any Royalty from the sale of Products for any calendar
quarter results in a negative number, no production royalty shall be payable with respect to that calendar quarter. Payments shall
be made to UOR at the address or addresses set forth on the signature page hereof, or as otherwise directed by UOR in writing.
ASEC shall, on a quarterly basis and in conjunction with each quarterly royalty payment, transmit to UOR an accurate statement
of the amount of Products sold during the quarter for which Royalties are paid, and the amount of transportation and taxes.
The customer receipts shall be prima facie evidence of the amounts so sold during each quarter. UOR may inspect and review the
customer receipts upon request at reasonable times.

(f) The price received for the Products
sold in an "arm’s length transaction" shall be presumed to be "Market Value" unless rebutted by a preponderance
of the evidence. For purpose of this paragraph, "arm's length transaction" means a transaction that has been arrived
at in the market place between independent, non-affiliated persons with opposing economic interests regarding that transaction.
In addition to the Royalty described above,

 

(g) Within ninety days of the end
of each fiscal year of ASEC, ASEC shall reconcile the amounts paid in Royalty with amounts shown as due in accordance with its
audited financial statements. Any over payment shall be deducted from the next Royalty Payment due; any under payment will be paid
with the next Royalty payment due.

    	7

    	 

    

 

 

		5.	DURATION

The
License Term will begin on January 1, 2012 and shall continue for a period of twenty years and
so long thereafter as production of products using the Licensed Technology is commercially and economically feasible, unless sooner
terminated under Section 8.

 

		6.	ENGINEERING AND DEVELOPMENT OF SCALED UP SYSTEM

6.1Engineering.
Upon successful demonstration of the SRS Machine and UOR Process as set forth above, and acceptance of such demonstration by ASEC,
the Parties shall enter into a Project Development Agreement with the following general terms;

(a)UOR
and SRS shall provide such engineering support to ASEC as reasonably necessary to assist ASEC in its efforts to implement the Licensed
Technology for the design, engineering, construction and operation of a facility to fulfill the License Grant and as reasonably
necessary to assist ASEC in its efforts to achieve its objectives of commercially viable volume separation and/or extraction of
such hydrocarbons, to the extent possible. It is anticipated that initial scale up shall be to a plant that will process up to
6,000 tons per day of tar sand ore (“3,000 BPD Facility”), similar to the ASEC Input Materials. UOR and SRS will provide
technical support for the Licensed Technology in the development and implementation of such facility.

(b)In order to facilitate the design,
engineering and implementation of the 3,000 BPD Facility, UOR, SRS and ASEC shall form an engineering committee (the "Engineering
Committee") to coordinate the activities of the parties under this Agreement. The Engineering Committee will be comprised
of two members, one of whom shall representative UOR and SRS and one of whom shall represent of ASEC. Each Party shall use reasonable
efforts to assure that its representatives so authorized to act on its behalf are present for all meetings of the Engineering Committee.

(c)The Engineering
Committee shall be responsible for the design, engineering, construction, cost, budget schedules and development of the 3,000 BPD
Facility (“Facility Plan”);

(d)The Facility
Plan will be submitted for review and approval by ASEC;

(e)UOR and
SRS will use commercially reasonable efforts to modify the Licensed Technology, at the request of ASEC, to fulfill the License
Grant.

(f)Upon successful
completion and operation of the 3,000 BPD Facility, the parties agree to work together, as provided above with respect to the 3,000
BPD Facility, to design and construct a facility capable of processing up to 100,000 tons per day of tar sand ore (50,000 BPD Facility),
or such other amount as may be reasonably agreed to by the parties.

(g) In connection
with a Designated Project as set forth above, UOR and SRS agree to perform such services, as set forth above, in connection with
such Project, with such additions or changes as may be mutually agreed to at the time of designation or at the time a definitive
agreement is entered into with respect to such project.

6.2Special Services.
UOR and SRS shall prepare specific technical information or data for ASEC, as reasonably requested by ASEC, including analysis
of the separation characteristics of the sand from the bitumen in tar sands and the kerogen from the shale in oil shale.

6.3Time and Materials . It
is agreed that in respect of any work or services performed by UOR and SRS for or on behalf of ASEC pursuant to Section 6.1 and
as agreed between such parties as set forth in Section 6.1 (a), (collectively “Services”), UOR and/or SRS, as the case
may be, shall be entitled to be paid, by ASEC, the following amounts:

    	8

    	 

    

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

(a)Management and
Overhead Fee: A fee of $* per month shall be paid for each Designated Project to cover management consulting and overheads until
such time as UOR receives Designated License Fees or Royalty Payments pursuant to Section 4 above; provided however, that the
$* fee set forth in 2.1 (d) above with respect to * will be deemed to satisfy the payments required under this paragraph. Payment
of such fees will commence at the time the Criteria are satisfied and the Designation notice is received by UOR. 

(b) In respect of labor;
For each individual who performs any of the Services, an amount equal to the number of hours spent by that individual multiplied
by the hourly labor rate applicable to such individual as set forth on a rate-sheet delivered by UOR and/or SRS to ASEC, plus 20%,
prior to agreement of the parties as to UOR and/or SRS’s performance of the Services in question, specifying the hourly labor
rates for each individual who is contemplated to assist in performing such Services.

(c)In respect of all
tools, equipment, parts, accessories and other materials and subcontract labor purchased specifically in order to perform or carry-out
any of the Services (herein referred to as “Materials”); An amount equal to the cost of the Materials plus an additional
20% of such cost.

(d)In respect of out-of-pocket costs;
ASEC shall pay UOR and SRS, in respect of all third-party costs and expenses reasonably incurred thereby and necessary in connection
with the performance of the Services (hereinafter “Expenses”), an amount equal to the cost paid by UOR and/or SRS in
respect of such Expenses

(e)UOR and SRS shall endeavor to keep
the facilities and other equipment purchased under this Agreement and the hydrocarbons under Lease free from liens and encumbrances
that might arise by reason of the activities or operations conducted under this Agreement. If a lien is placed on the Leases, facilities,
other equipment, or any hydrocarbons by a third-party under contract with UOR and SRS, then UOR and SRS shall make reasonable efforts,
at its cost, to remove the lien. However, if a lien is made by a third-party under a contract with ASEC to which UOR or SRS is
not a party, then ASEC shall make reasonable efforts, at its cost, to remove the lien and to remove UOR and SRS as a Party in or
to any such action.

6.5Records.
UOR and SRS shall keep accurate books, accounts, and records of all costs, expenses, activities and operations under this Agreement
in compliance with GAAP. Unless otherwise provided in this Agreement, all records shall be available to ASEC at all reasonable
times during normal office hours. UOR and SRS shall use good-faith efforts to ensure the settlements, billings, and reports rendered
under this Agreement are complete and accurate.

		7.	OWNERSHIP

7.1Ownership
of the Licensed Technology.  To the best of their knowledge, UOR and SRS have all necessary rights to perform their obligations
hereunder, including but not limited to Intellectual Property Rights in and to the Licensed Technology, and in trade-secrets, know-how,
ideas, techniques, procedures and concepts embodied therein. To the best of UOR’s and SRS’s knowledge, the Licensed
Technology does not infringe or otherwise impair or conflict with (collectively, "Infringe") the intellectual property
rights of any third party or any confidentiality obligation owed to a third party. To the best of UOR’s and SRS’s knowledge,
there is no litigation or order pending or outstanding or, threatened or imminent, that seeks to limit or challenge or that concerns
the ownership, use, validity or enforceability of the Licensed Technology and there is no valid basis for the same.

7.2Ownership
of Modifications. All improvements and modifications to the Licensed Technology shall remain the sole and absolute property
of UOR and SRS. ASEC does not obtain any rights, title or interests, including but not limited
to intellectual property rights, in the Licensed Technology, other than the license conferred herein. Any equipment or other ideas
not comprising the Licensed Technology shall be the property of ASEC.

    	9

    	 

    

 

		8.	TERMINATION 

8.1Termination.
A Party may terminate the rights and licenses granted to the other Party under this Agreement upon sixty (60) days written notice
of termination to the other Party given at any time upon or after:

(a)the filing
by the other Party of a petition in bankruptcy or insolvency not dismissed within ninety (90) days of the filing;

(b)any adjudication
that the other Party is bankrupt or insolvent;

(c)the filing
by the other Party of any petition or answer seeking reorganization, readjustment or arrangement of its business under any law
relating to bankruptcy or insolvency;

(d)the appointment
of a receiver for all or substantially all of the property of the other Party;

(e)the making
by the other Party of any assignment for the benefit of creditors;

(f)the institution
of any proceedings for the liquidation or winding up of the other Party’s business or for the termination of its corporate
charter not dismissed within ninety (90) days of the institution of the proceedings; or

(g)by UOR,
if ASEC shall not have used commercially reasonable efforts to permit and develop tar and oil sand projects in the Territory, and
does not commence such efforts within thirty (30) days of receiving written notice

(h)by ASEC,
if UOR or SRS is in breach of any of their obligations hereunder, or are unable to perform their obligations hereunder; provided
that this Agreement may be terminated with respect to the Engineering Services to be delivered by SRS separately, and the License
of the Licensed Technology by UOR shall continue.

(i)by ASEC,
if in its sole discretion deems the demonstration set forth in Section 2 unsuccessful.

8.2Returning
Confidential Information. All materials containing Confidential Information of the other Party shall be returned to that Party
within thirty (30) days after termination of this Agreement.

8.3Survival.
The provisions of Sections 8, 9, 10 and 11 shall survive any termination of this Agreement.

		9.	CONFIDENTIAL INFORMATION

9.1Restrictions.
Each Party shall hold in confidence, and shall use solely for purposes of or as provided in this Agreement, any Confidential
Information received by it from the other or derived from Confidential Information received from the other, and shall protect
the confidentiality of such with the same degree of care that it exercises with respect to its own information of like import,
but in no event less than reasonable care. For the purpose of this Agreement, Confidential Information shall include business,
financial or technical data, machine-readable or interpreted information, information contained in physical components, mask works
or artworks, or combinations of publicly available information that are not publicly available in such combined form. 
.. 

9.2Exceptions.
The obligations of Section 8.1 shall not apply to any portion of the Confidential information which:

    	10

    	 

    

 

(a)is now
or which hereafter through no act or failure to act on the part of the receiving Party becomes generally known.

(b)is hereafter
furnished to the receiving Party by a third party without obligation to keep such information confidential;

(c)is independently
developed by the receiving Party without the use of the Confidential Information;

(d)is required
to be disclosed pursuant to a legal, judicial or administrative procedure or otherwise required by law; providing the disclosing
Party gives the other Party notice of the proposed disclosure with sufficient time to seek relief;

(e)is already
in the possession of, or known to, the receiving Party prior to its receipt; or

(f)is approved
for release or use without restriction by written authorization of an officer of the disclosing Party.

Subject to the requirements of Sections
9.1 hereof, a receiving Party may disclose appropriate portions of Confidential Information, with written permission from the other
Party, to its employees and consultants who have a need to know the specific information in question, auditors, lenders and regulators
having a legitimate need or right to know, and which have agreed to be bound by the obligations of confidentiality herein, or by
separate agreement with equal or greater restrictions, in which event the receiving Party will make a reasonable effort to minimize
the amount of information disclosed and to cause such persons to maintain the confidentiality of the information disclosed.

9.3Injunction.
Confidential Information has been and will continue to be of central importance to the business of a disclosing Party, and its
disclosure to or use by others will cause immediate and irreparable injury to the disclosing Party, which may not be adequately
compensated by damages and for which there is no adequate remedy at law. In the event of any actual or threatened misappropriation
or disclosure of Confidential Information, the receiving Party agrees that the disclosing Party will be entitled to an injunction
prohibiting such misappropriation or disclosure, and to specific enforcement of the receiving Party’s obligations hereunder.
The foregoing rights to an injunction and specific performance will be cumulative and in addition to every other remedy now or
hereafter available to disclosing Party in law or equity or by statute.

 

		10.	INTELLECTUAL PROPERTY RIGHTS INDEMNITY

(a)
UOR and SRS will defend ASEC from any third party action brought against ASEC to the extent based
on a claim that the Licensed Technology, or any part thereof, infringe, misappropriate or otherwise violate any Intellectual Property
Right which is the subject of a governmental grant, license or registration or is similarly recognized or perfected under applicable
law (but not pending, unregistered, “common law” or otherwise inchoate rights) provided the claimant has given ASEC
a reasonable period to time, not less than 180 days, in which to address or cure any purported infringement or violation, and will
pay any costs, damages and reasonable attorneys’ fees attributable to such claim that are ultimately awarded against ASEC.
ASEC will (i) promptly notify UOR and SRS in writing of the claim, (ii) grant UOR and
SRS control of the defense and settlement of the claim, provided that ASEC has reasonably approved defense
counsel and any settlement and (iii) provide UOR and SRS with all reasonable assistance, information
and authority required for the defense and settlement of the claim. 

(b)
ASEC will defend UOR and SRS from any third party action brought against ASEC to the extent based
on a claim for trespass, or with respect to any claim regarding mineral rights, property rights or other claims relating to the
development of the properties, other than claims for which ASEC is indemnified pursuant to section 10 (a).

    	11

    	 

    

 

	
        Material marked with an asterisk has been omitted from this document
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

 

(c) Section 10 (a) does not apply to a claim due to misapplication of the Licensed Technology by ASEC, by
a Designated Party or by any party introduced by ASEC to the Licensed Technology, or to the extent attributable to use of the Licensed
Technology, or part thereof, in combination with third party technology, where use of the Licensed Technology, or part thereof,
alone is not infringing.

		11.	REPRESENTATIONS AND WARRANTIES

11.1Representations
and warranties of UOR and SRS. UOR and SRS each represents and warrants that:

(a)Each is a
corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has
all requisite corporate power and authority to carry on its business as now conducted and to own its properties.

(b)Each has
full power and authority and has taken all requisite action on its part necessary for (i) the authorization, execution and delivery
of this Agreement and (ii) the authorization of the performance of all obligations hereunder. This Agreement constitutes the legal,
valid and binding obligation of each of UOR and SRS, enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors'
rights generally.

(c)The execution,
delivery and performance of this Agreement does not require the consent of, action by or in respect of, or filing with, any person,
governmental body, agency, or official

(d)The execution,
delivery and performance hereof will not conflict with or result in a breach or violation of any of the terms and provisions of,
or constitute a default under (i) its Certificate of Incorporation or Bylaws, both as in effect on the date hereof or (ii)(a) any
statute, rule, regulation, order or judgment of any governmental agency or body or any court, domestic or foreign, having jurisdiction
over UOR or SRS or any of their respective assets or properties, or (b) any agreement or instrument to which either is a party
or by which either is bound or to which any of their respective assets or properties is subject.

(e)With respect
to the UOR Solvent:

*

11.2Representation
and Warranties of ASEC. ASEC represents and warrants that:

(a)It is a corporation
duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite
corporate power and authority to carry on its business as now conducted and to own its properties.

(b)It has full power
and authority and has taken all requisite action on its part necessary for (i) the authorization, execution and delivery of this
Agreement and (ii) the authorization of the performance of all obligations hereunder. This Agreement constitutes the legal, valid
and binding obligation of ASEC, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors' rights generally.

(c)The execution,
delivery and performance of this Agreement does not require the consent of, action by or in respect of, or filing with, any person,
governmental body, agency, or official.

(d)The execution,
delivery and performance hereof will not conflict with or result in a breach or violation of any of the terms and provisions of,
or constitute a default under (i) its Certificate of Incorporation or Bylaws, both as in effect on the date hereof or (ii)(a) any
statute, rule, regulation, order or judgment of any governmental agency or body or any court, domestic or foreign, having jurisdiction
over ASEC or any of their respective assets or properties, or (b) any agreement or instrument to which either is a party or by
which either is bound or to which any of their respective assets or properties is subject.

    	12

    	 

    

 

 

		12.	GENERAL

12.1Choice of
Law. This Agreement is made under and shall be governed by and construed in accordance with the laws of the State of Utah,
United States of America (except that body of law controlling conflict of laws) and specifically excluding from application to
this Agreement that law known as the United Nations Conventions on the International Sale of Goods.

12.2Counterparts.
This agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which constitute
but one and the same instrument.

12.3Entire Agreement.
This Agreement, including all Attachments hereto, constitutes the entire agreement between the parties with respect to the subject
matter hereof, and supersedes and replaces all prior or contemporaneous understandings or agreements, written or oral, regarding
such subject matter, but expressly excluding agreements pertaining to the nondisclosure or confidentiality of information. This
Agreement will be fairly interpreted in accordance with its terms and without any strict construction in favor or against either
Party. Unless otherwise provided herein, this Agreement may not be modified, amended, rescinded, or waived, in whole or in part,
except by a written instrument signed by the duly authorized representatives of both parties.

12.4Headings.
The headings and captions in this Agreement are used for convenience only and are not to be considered in construing or interpreting
this Agreement.

12.5Independent
Contractor. UOR and SRS are each an independent contractor to ASEC. This Agreement will not
be deemed to create a partnership, joint venture or franchise, and neither Party is the other’s agent, partner, employee
or representative, nor does a Party have any authority to bind the other Party to any obligation by contract or otherwise.

12.6Notices.
All notices required hereunder must be in writing and delivered either in person or by a means evidenced by a delivery receipt,
to the addresses which follow or as otherwise notified in writing, and will be effective upon receipt:

To UOR:Universal Oil Recovery
LLC

26027 S. Nottingham Dr.

Sun Lakes, AZ 85248

Attn: Glenn McGinnis

 

To SRS:SRS International

_______________

_______________

Attn: George Hawranik

 

To ASEC:American Sands
Energy Corp.

4760 S. Highland Dr.,
#341

Salt Lake City, UT 84117

Attn: William Gibbs, President

 

12.7No Rights
in Third parties. This Agreement is made for the benefit of the Parties and not for the benefit of any third parties unless
otherwise agreed to by the Parties in writing.

    	13

    	 

    

 

12.8Relationship
of the parties. No employees, consultants, contractors, or agents of one Party are agents, employees, franchisees, or joint
ventures of the other Party, nor do they have any authority to bind the other Party by contract or otherwise to any obligation.
No Party will represent to the contrary, either expressly, implicitly, or otherwise.

12.9Severability.
In the event that any part of this Agreement is found to be unenforceable, the remainder shall continue in effect, to the extent
consistent with the intent of the Parties as of the Effective Date.

12.10Specific
Performance. The Parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that any Party hereto
shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which they are entitled hereunder or otherwise.

IN WITNESS WHEREOF, the
Parties have caused this Agreement to be executed by their duly authorized representatives.

 

	Universal Oil Recovery LLC	AMERICAN SANDS ENERGY CORP.
	 	 
	BY: /s/ Glenn McGinnis___________	BY: /s/ William C. Gibbs_________________
	NAME: Glenn McGinnis	NAME:  William C. Gibbs

TITLE: PresidentTITLE: President

 

SRS INTERNATIONAL

 

By: /s/ George Hawranik

NAME: George Hawranik

TITLE:

 

 

 

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        Material marked with an asterisk has been omitted from this page
        pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

 

APPENDIX A

 

ENGINEERING CRITERIA

A1.1General
Specifications of UOR System and SRS Machine to test ASEC’s Tar Sand Deposits.

 

*

 

A1.2Processes Comprising the System.

 

*

 

A1.3Main Components of System.

 

*

 

A1.4Controls for System.

 

*

 

A1.5Documentation in Connection with System.

 

*

 

A1.6Additional Covenants by SRS. SRS hereby agrees:

 

*

 

A1.7Commissioning of the System.

 

*

 

A1.8Demonstration and Certification   

 

*

 

A1.9Acceptance of System.

*

 

A1.11SRS Guarantee.

 

*

    	15

    	 

    

 

 

A1.12Non-Disclosure of Proprietary Information.

 

		a)	Unless legally required (i.e. Securities Laws and Regulations) or specific written permission is given by UOR, neither SRS
nor ASEC nor any of their respective shareholders, directors, officers, employees, agents, representatives, affiliates,
and/or consultants shall disclose to any third party, person, or entity any information about this Agreement, about UOR, about
ASEC or about the status, costs, technical design, specifications, purchaser of the SRS Machine or schedule of work being done
on and for demonstration of the SRS Machine, System or Technology.

 

		b)	This Section does not apply to disclosures made to scientists, engineers, and/or other technical personnel (“Technical
Service Providers”) hired by SRS or UOR or ASEC with full knowledge of UOR in connection with the pursuit of improvements
to the System, so long as all such Technical Service Providers are required to execute appropriately worded “work-for-hire”
non-disclosure and confidentiality agreements that grant all intellectual property rights to UOR for any and all inventions or
improvements developed by any consultants or employees paid directly or indirectly by UOR for development of its products.

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