Document:

LEASE ADDENDUM

 

THIS LEASE ADDENDUM
(this “Addendum”) is entered into effective the 1st day of October 2011, by and between Oakley Ventures, LLC, a Colorado
limited liability company (“Oakley”), and Eternal Energy Corp., a Nevada Corporation (“Lessee”).

 

WHEREAS, Lessee is
a party to that certain Colorado Shopping Center Lease dated December 05, 2008, by and between Lessee, as tenant, and Oakley, as
landlord, pursuant to which Lessee has leased the Demised Premises at 2549 West Main Street, Ste 202, Littleton Colorado; and

 

WHEREAS, parties desire
to extend the term of the Lease pursuant to the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth in the Agreement and herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows

 

1.          Definitions.
Any capitalized terms used but not otherwise defined in this Addendum shall have the meanings assigned to such terms in the Lease.
For the purposes of this Addendum and all rights of the Lessor as set forth in the Lease, shall be referred to as the “Lessor”.

 

2.          Term.
The initial term of the Lease will terminate on December 31, 2011. Pursuant to this Addendum, the term of the Lease is herby extended
until December 31, 2014, unless earlier terminated pursuant to the terms of the Lease, as it may be amended.

 

3.          Base
Rent. Notwithstanding any provision of the Lease to the contrary, the Base Rent payable by Lessee to Lessor for the Demised
Premise from and after October 1, 2011 until December 31, 2014 shall be an amount equal to Two Hundred Seven Thousand Six Hundred
Fifty Three and 25/100 Dollars ($207,653.25), which shall be payable by Lessee to Lessor in monthly installments pursuant to the
terms of the Lease as follows:

 

	Months	 	Sq. Ft. Cost	 	 	Monthly Payment	 
	10/01/2011  -  12/31/2012	 	$	19.00	 	 	$	 5,077.75 per month	 
	1/01/2013  -  12/31/2013	 	$	20.00	 	 	$ 	5,345.00 per month	 
	1/01/2014  -  12/31/2014	 	$	21.00	 	 	$ 	5,612.25 per month	 

 

4.          Improvements
and Repairs. Lessor agrees to reimburse Lessee for the annual cost of cleaning the carpets located within the Demised Premises.
Lessor further agrees to perform and fund improvements to the Demised Premises, as deemed necessary, to properly ventilate and
protect Lessor’s network equipment,

 

	Page 1 of 4	 
	 	Initial
	 	 
	 	 
	 	Initial

 

    	 

    	 

    

 

5.          Option
to Extend Lease Term. The extension granted to the initial Lease term pursuant to this Addendum shall be in lieu of Lessee’s
Option as set forth in the Lease, and the parties agree that Option shall be of no further force and effect.

 

6.          Notice.
The notice provisions set forth in Paragraph 35 of the Lease are hereby amended to provide that the proper addresses for Lessor
to be used for the purpose of notice pursuant to the Lease is as follows:

 

	If to Lessor:	Oakley Ventures, LLC
	 	c/o Highline Realty Partners, Inc.
	 	Attn:  Rees F. Davis, Jr.
	 	3695 East Long Road
	 	Greenwood Village, Colorado  80120

 

7.          Parking.
Lessee and Lessee’s employees agree to adhere to a priority parking plan as follows:

 

First, to utilize the reserved north facing
spaces in the parking lot commonly known as the Lilley Building parking lot.

 

Second, if the north facing spaces of Lilley
are full, to utilize the middle section of spaces in the Lilley lot.

 

8.          Confidentiality
Agreement. Per Exhibit A to Addendum as attached.

 

9.          Ratification.
Except as modified by this Addendum and subject to the last sentence of this Section 6, all of the terms, covenants and conditions
of the Lease are ratified and affirmed and shall remain in full force and effect. To the extent the terms and provisions of this
Addendum modify or conflict with any term or provision of the Lease, the modifying or conflicting term and provision of this Addendum
shall control in all respects, and the corresponding term and provision of the Lease shall be superseded to the extent of such
modification or conflict.

 

10.         Entire
Agreement. The Lease, including this Addendum, expresses the entire agreement of Lessor and Lessee. There are no other understandings,
oral or written, which in any manner alter or enlarge its terms.

 

11.         Binding.
This Addendum shall be binding upon and benefit the parties hereto and their successors and assigns.

 

12.         Acceptance.
This Addendum is offered for signature to Lessee, and it is understood that this Addendum shall not be binding upon Lessor unless
and until Lessor shall have executed and delivered a fully-executed copy of this Addendum to Lessee.

 

	Page 2 of 4	 
	 	Initial
	 	 
	 	 
	 	Initial

 

    	 

    	 

    

 

13.         Execution.
This Addendum may be executed in multiple counterparts. A fully-executed copy of this Addendum may be transmitted by facsimile
or electronic mail, and such shall be deemed to be an original.

 

[Signature Page to Follow]

 

	Page 3 of 4	 
	 	Initial
	 	 
	 	 
	 	Initial

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Addendum effective as of the date first set forth above.

 

	LESSOR:	 
	 	 
	OAKLEY VENTURES, LLC,	 
	a Colorado limited liability company	 
	 	 	 
	By:	 	 
	 	Rees F. Davis, Jr., Manager	 

 

	LESSEE:	 
	 	 
	ETERNAL ENERGY CORP.,	 
	a Nevada Corporation	 

 

	By:	 	 
	Name:	Brad Colby	 
	Title:	President	 

 

	Page 4
    of 4	 

 

    	 

    	 

    

 

Exhibit “A” to Addendum

 

Confidentiality Agreement

 

RECITALS

 

WHEREAS, Lessor and
Lessee entered into an original Lease, dated December 5, 2008;

 

WHEREAS, Lessor and
Lessee entered into the Lease Addendum, dated October 1, 2011;

 

WHEREAS, the Lease
Addendum includes private and sensitive Confidential Information (as the term is defined in this Agreement), the disclosure of
which would cause Lessor irreparable harm that would be difficult to quantify;

 

WHEREAS, Lessor would
not otherwise agree to negotiate the Lease Addendum without Lessee’s agreement to maintain the confidentiality and privacy
of the Confidential Information in accordance with the terms and conditions of this Agreement;

 

WHEREAS, the Parties
have entered into this Agreement so as to enable to Parties to enter into the Lease Addendum without the risk of Lessor being harmed
by the disclosure of the Confidential Information;

 

AGREEMENT

 

NOW, THEREFORE, in
consideration for the agreements, promises, covenants and other consideration contained herein, the receipt, adequacy and sufficiency
of which is hereby acknowledged and confessed, Lessor and Lessee agree as follows:

 

1.     Non-disclosure
of Confidential Information

 

1.1           “Confidential
Information” shall collectively include any and all information relating to this Agreement, the terms and conditions of the
Lease Addendum and any amendment or proposed amendment to the Lease, including, without limitation: (i) any information relating
to or connected with the negotiations surrounding the Lease Addendum or any amendment of the Lease; (ii) rental payments, rental
concessions or any other matter affecting the pricing terms of the Lease Addendum; (iii) any information regarding the status or
history of negotiations regarding the Lease Addendum or any amendments to the Lease; and (iv) any and all information, correspondence,
communication (written, verbal, or electronic) relating to or connected with this Agreement, negotiations regarding the Lease Addendum.

 

	Page 1 of 3	 
	 	Initial
	 	 
	 	 
	 	Initial

 

    	 

    	 

    
  

1.2           Lessee
shall: (i) hold in confidence all Confidential Information: and (ii) not use, disclose, reproduce or dispose of such Confidential
Information in any manner except as required by applicable law or in connection with the performance of his/her duties and responsibilities
to the Lessor.

 

 

2.    Survival;
Relief

 

2.1           The
provisions of this Agreement shall independently survive the termination of the Lease and be separately enforceable in any court
of competent jurisdiction.

 

2.2           Lessee
acknowledges that any breach of this Agreement will cause Lessor irreparable harm that will be difficult, if not impossible, to
accurately quantify. Therefore, Lessee agrees that the Lessor shall be entitled to preliminary and permanent injunctive relief
against any breach by Lessee of the provisions of this Agreement, without having to post bond; provided, however, that nothing
in the foregoing clause shall limit the Lessor’s right to seek monetary damages, nor shall any election to pursue injunctive
or other equitable relief be deemed a waiver of Lessor’s right to seek damages at law. Additionally, for each violation of
this Agreement, Lessee agrees that, as compensation for the damages suffered by Lessor, Lessee shall pay Lessor the sum of twenty-five
thousand and 00/100 ($25,000) as liquidated damages (“Liquidated Damages”). The Parties acknowledge that the Liquidated
Damages reflect a fair estimate of the damages that would be suffered by Lessor in the event of a violation of this Agreement and
expressly agree that this sum does not constitute a penalty. These Liquidated Damages shall be in addition to, and shall not limit
Lessor’s ability to recover, other sums recoverable under existing law (including, without limitation, attorneys fees and
costs arising from or relating to Lessee’s breach of this Agreement). The existence of any claim, dispute or cause of action
of Lessee against the Lessor, whether predicated upon this Agreement or otherwise, will not constitute a defense to the enforcement
by the Lessor of any provision of this Agreement.

 

3.    Miscellaneous

 

3.1           Severability.
In the event that any portion or provision of this Agreement shall be determined by a court of competent jurisdiction to be overly
broad, unlawful or unenforceable, then the remainder of this Agreement, or the applicable of such portion or provision in circumstances
other than those as to which it is declared overly broad, unlawful or unenforceable, shall not be affected thereby, and the remaining
portions and provisions of this Agreement shall remain in full force and effect.

 

	Page 2 of 3	 
	 	Initial
	 	 
	 	 
	 	Initial

 

    	 

    	 

    

 

3.2          Assignment;
Binding Effect. The Lessor but not Lessee may assign or transfer any right under this Agreement or any interest herein, by
operation of law or otherwise, without the prior consent of Lessee. This Agreement shall inure to the benefit of and be binding
upon the Lessor and Lessee.

 

3.3          Exception.
Notwithstanding anything contained to the contrary, if Lessee needs to disclose information for public reporting or disclosure
purposes, the terms of this Confidentiality Agreement do not apply.

  

	Page 3 of 3	 
	 	Initial
	 	 
	 	 
	 	InitialAMENDING AGREEMENT

to the

PARTICIPATION AND OPERATING AGREEMENT

 

This Amending Agreement
(this “Amendment”) made as of February 1, 2012 (the “Effective Date”), between:

 

EERG Energy ULC, a wholly
owned subsidiary of Eternal Energy Corp. (hereinafter called “Eternal”), a corporation incorporated pursuant
to the laws of the Province of Alberta;

 

and

 

AEE Canada Inc., a wholly owned
subsidiary of American Eagle Energy, Inc. (hereinafter called “American Eagle”), a corporation incorporated
pursuant to the laws of the Province of Alberta;

 

and

 

PASSPORT ENERGY
INC. (hereinafter called “Passport”), a corporation formed pursuant to the laws of British Columbia.

 

WHEREAS the
parties entered into a Participation and Operating Agreement dated April 15, 2011 (the “Agreement”) whereby
the Farmors agreed to grant Passport a Working Interest in the Joint Lands;

 

AND WHEREAS
Eternal, as the Operator, drilled the Test Well on the Joint Lands and Passport earned a 25% Working Interest in and to the Test
Well pursuant to the terms and conditions of the Agreement;

 

AND WHEREAS
Eternal, as the Operator, gave notice of its intention to drill the Option Well on the Option Lands;

 

AND WHEREAS
Passport has acknowledged receipt of Eternal’s notice to drill the Option Well and has now elected to participate in the
drilling of the Option Well, subject to the amendments to the allocation of the Completion Costs and Working Interests of the Parties,
and such other amendments to the Agreement as hereby agreed by the Parties, all as further set forth in this Amendment;

 

NOW THEREFORE,
in consideration of the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt
and adequacy of which is hereby acknowledged by the Parties, the Parties hereby agree as follows:

 

    	

    	 

    
  

Article 1

amendments

 

From and after
the Effective Date, the Parties agree and acknowledge that the Agreement is hereby amended as follows:

 

		1.1	Amendments to the Definitions

 

		(a)	The definition of “AMI Interest” as set forth in Section 1.1(b) of the Agreement
shall be deleted in its entirety and replaced with the following:

 

“AMI
Interest” means the following ownership percentages of each of the Parties granted in respect of the AMI Lands pursuant
to Article 7 of this Agreement:

 

		(i)	with respect to Passport, a 15% interest ;

 

		(ii)	with respect to Eternal, 42.5% interest; and

 

		(iii)	with respect to American Eagle, 42.5% interest;”.

 

		(b)	The definition of “Option Well” as set forth in Section 1.1(s) of the Agreement
shall be amended to mean the Hardy 3D14-17-3A3-17-4-21 Well.

 

		1.2	Amendments to the Schedules

 

Schedule “A”
of the Agreement shall be deleted in its entirety and replaced with Schedule “A” attached and incorporated into to
this Amendment, which Schedule “A” shall replace and supersede the version of Schedule “A” attached to
the Agreement.

 

		1.3	Amendments to the Costs of the Option Well

 

Section
4.4(a) of the Agreement is deleted in its entirety and replaced with the following:

 

“4.4Costs of Option
Well

 

(a)In
the event that Passport has elected to participate in the Option Well pursuant to Section 4.1(a), Passport shall pay Eternal 23.1%
of the Estimated Drilling Costs to be incurred by Eternal with respect to the Option Well on or before January 27, 2012. Thereafter,
on or before that day which is 20 days after the date on which Passport receives from Eternal the summary of the actual Completion
Costs incurred by Eternal with respect to the Test Well,

 

(i)Passport
shall promptly pay to Eternal 23.1% of the difference between the Completion Costs and the Estimated Drilling Costs for the Option
Well, if the Completion Costs exceed the Estimated Drilling Costs; or

 

    	2

    	 

    

 

(ii)Eternal
shall promptly reimburse Passport 23.1% of the difference between the Estimated Drilling Costs and the Completion Costs for the
Option Well, if the Completion Costs are less than the Estimated Drilling Costs.”

 

		1.4	Amendments to Earning of the Option Well

 

Section
4.5(a) of the Agreement is deleted in its entirety and replaced with the following:

 

“4.5Earning

 

(a)Where
the Farmors have elected to drill the Option Well pursuant to Section 4.1(a), upon the drilling of the Option Well to Contract
Depth and Completion, Capping or Abandonment of the Test Well, and subject to Eternal receiving payment pursuant to Section 4.4
(a) above:

 

(i)Eternal
shall transfer an undivided 7.5% Working Interest in the Option Well and in Sections 17 and 18 in Township 4, Range 21 W2M of the
Option Lands to Passport;

 

(ii)American
Eagle shall transfer an undivided 7.5% Working Interest in the Option Well and in Sections 17 and 18 in Township 4, Range 21 W2M
of the Option Lands to Passport;

 

(iii)Eternal
shall transfer an undivided 3.75% Working Interest in the W1⁄2 of Section 5 and all of Section 6 in Township 4, Range 21 W2M
of the Option Lands to Passport; and

 

(iv)American
Eagle shall transfer an undivided 3.75% Working Interest in the W1⁄2 of Section 5 and all of Section 6 in Township 4, Range
21 W2M of the Option Lands to Passport.

 

(b)As
a result of the transfers noted in Section 4.5(a) above, the resulting Working Interests of the Parties in and to the Option Well
and the applicable Option Lands and all Petroleum Substance received therefrom shall be as follows:

 

(i)With
respect to Eternal:

 

(A)a
42.5% Working Interest in the Option Well and in Sections 17 and 18 in Township 4, Range 21 W2M of the Option Lands; and

 

(B)a
46.25 % Working Interest in the W1⁄2 of Section 5 and all of Section 6 in Township 4, Range 21 W2M of the Option Lands.

 

    	3

    	 

    
  

(ii)With
respect to American Eagle:

 

(A)a
42.5% Working Interest in the Option Well and in Sections 17 and 18 in Township 4, Range 21 W2M of the Option Lands; and

 

(B)a
46.25 % Working Interest in the W1⁄2 of Section 5 and all of Section 6 in Township 4, Range 21 W2M of the Option Lands.

 

(iii)With
respect to Passport:

 

(A)a
15% Working Interest in the Option Well and in Sections 17 and 18 in Township 4, Range 21 W2M of the Option Lands; and

 

(B)a
7.5% Working Interest in the W1⁄2 of Section 5 and all of Section 6 in Township 4, Range 21 W2M of the Option Lands.”

 

		1.5	Amendments to the Cost and Earning of the Disposal

 

Sections 5.2
and 5.3 of the Agreement are deleted in their entirety and replaced with the following:

 

“5.2Cost of Water Disposal
Well

 

In the event
that Passport has elected to participate in the conversion of the Water Disposal Well pursuant to Section 5.1, upon receipt of
invoice from Eternal for the estimated conversion costs of the Water Disposal Well, Passport shall pay Eternal 23.1% of the estimated
conversion costs to be incurred by Eternal with respect to conversion of the Water Disposal Well. Thereafter, on or before that
day which is 20 days after the date on which Passport receives from Eternal the summary of the actual conversion completion costs
incurred by Eternal with respect to conversion of the Water Disposal Well,

 

(a)Passport
shall pay to Eternal 23.1% of the difference between the actual conversion completion costs and the estimated conversion costs
for the Water Disposal Well, if the actual costs exceed the estimated costs; or

 

(b)Eternal
shall reimburse Passport 23.1% of the difference between the estimated costs and the actual costs for the Water Disposal Well,
if the actual costs are less than the estimated costs.

 

“5.3Earning

 

Upon completion
of conversion of the Water Disposal Well, and subject to Eternal receiving payment pursuant to Section 5.2 above:

 

(a)Eternal
shall transfer an undivided 7.5% Working Interest in the Water Disposal Well to Passport; and

 

(b)American
Eagle shall transfer an undivided 7.5% Working Interest in the Water Disposal Well to Passport.

 

    	4

    	 

    
  

As a result
of the transfers noted above, the resulting Working Interests of the Parties in and to the Water Disposal Well and all proceeds
received therefrom shall be as follows:

 

(a)With
respect to Eternal a 42.5% Working Interest;

 

(b)With
respect to American Eagle a 42.5% Working Interest; and

 

(c)With
respect to Passport a 15% Working Interest.

 

Each of the
Farmors shall do all other acts and things necessary to transfer and to evidence the transfer of such Working Interest, including
the entering into of an assignment agreement on terms satisfactory to the Parties, acting reasonably.”

 

Article 2

RATIFICATION AND CONFIRMATION

 

		2.1	Participation and Operating Agreement

 

Except
as expressly amended hereby, the Agreement, as amended, is hereby ratified and confirmed and the Parties acknowledge that it continues
in full force and effect in all respects.

 

Article 3

GENERAL

 

		3.1	Governing Law

 

This Amendment shall,
in all respects, be subject to, interpreted, construed and enforced in accordance with and under the laws of the Province of Alberta
and the laws of Canada applicable therein. The Parties irrevocably attorn and submit to the exclusive jurisdiction of the courts
of Alberta and the courts of appeal therefrom in respect of all matters arising out of or in connection with this Amendment. To
the extent that the fact that the Lands lie within the Province of Saskatchewan requires the application of the laws in force in
the Province of Saskatchewan, such laws shall be adduced as evidence in the Alberta courts having jurisdiction in respect of a
dispute arising hereunder.

 

		3.2	Further Assurances

 

From time to time,
as and when reasonably requested by any Party, the other Party shall execute and deliver, or cause to be executed and delivered,
all such documents and instruments and shall take, or cause to be taken, all such further and other actions to implement or give
effect to this Amendment.

 

    	5

    	 

    
  

		3.3	Entire Agreement

 

This Amendment supersedes
any and all other agreements, documents, writings and verbal understandings between the Parties relating to the subject matter
hereof and expresses the entire agreement of the Parties with respect to the subject matter hereof.

 

		3.4	Severability

 

If any covenant or
condition contained in this Amendment is determined to be, in whole or in part, invalid or unenforceable by reason of any rule
of law or public policy, such invalidity or unenforceability will not affect the validity or enforceability of any other covenant
or provision, such partial invalidity or unenforceability shall not affect the validity or enforceability of the remainder of such
covenant or provision and such invalid or unenforceable covenant or provision or portion thereof, as the case may be, shall be
severable from the remainder of this Amendment.

 

		3.5	Enurement

 

This Amendment shall
be binding upon and enure to the benefit of the Parties and their respective successors and assigns.

 

 

[this space intentionally
left blank – signature page follows]

 

    	6

    	 

    

 

		3.6	Counterpart Execution

 

This Amendment may
be executed by facsimile and in counterpart, all of which, when taken together, shall be deemed one and the same instrument.

 

IN WITNESS WHEREOF
the Parties have executed this Agreement as of the day and year first above written.

 

	 	EERG Energy ulc .
	 	 
	 	By:	 
	 	 	[Name]
	 	 	[Title]
	 	 	 
	 	By:	 
	 	 	[Name]
	 	 	[Title]
	 	 	 
	 	AEE Canada INC.
	 	 
	 	By:	 
	 	 	[Name]
	 	 	[Title]
	 	 	 
	 	By:	 
	 	 	[Name]
	 	 	[Title]
	 	 	 
	 	PASSPORT ENERGY INC.
	 	 
	 	By:	 
	 	 	[Name]
	 	 	[Title]
	 	 	 
	 	By:	 
	 	 	[Name]
	 	 	[Title]

 

 

    	7

    	 

    

 

SCHEDULE “A”

 

to Participation
and Operating Agreement

dated April 15, 2011, as amended, between

EERG Energy ULC., AEE Canada Inc. and Passport Energy Inc.

 

JOINT AND OPTION LANDS, TITLE DOCUMENTS,
WORKING INTEREST

AND ENCUMBRANCES

 

 

 

Joint Lands:

 

	Joint Lands	Title Documents	Working Interest	Encumbrances
	E1⁄2 and SW1⁄4 of Section 4, W1⁄2 of Section 9, W1⁄2 of Section 16 and W1⁄2 of Section 21 in Township 4, Range 21 W2M	 	
        - AEE Canada Inc. – 50%

        - EERG Energy ULC. – 50%
	
        - 9% GORR to Crescent Point Energy

        - 1.75% GORR to Fairway Resources LLP

        - .25% GORR to Tom Lantz

        - 1% GORR to Richard Findley

        - Saskatchewan Crown Royalties and Mineral
        Taxes

 

Option Lands:

 

	Option Lands	Title Documents	Working Interest	Encumbrances
	W1⁄2 of Section 5 and all of Sections 6, 17 and 18 in Township 4, Range 21 W2M	 	
        - AEE Canada Inc. – 50%

        - EERG Energy ULC. – 50%
	
        - 9% GORR to Crescent Point Energy

        - 1.75% GORR to Fairway Resources LLP

        - .25% GORR to Tom Lantz

        - 1% GORR to Richard Findley

        - Saskatchewan Crown Royalties and Mineral
        Taxes

 

    	8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]