DAYBREAK OIL & GAS, INC.
EXHIBIT 10.37
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>8
<FILENAME>exhibit1037.htm
<DESCRIPTION>EXHIBIT 10.37
<TEXT>
<HTML>
<HEAD>
     <TITLE>Exhibit 10.37</TITLE>
</HEAD>
<BODY>


<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; border-top: Black 2.25pt double; text-align: right"><B>Exhibit 10.37</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: 20pt"><IMG SRC="image_003.jpg" ALT="" STYLE="height: 54px; width: 73px"></TD>
    <TD COLSPAN="2" STYLE="text-indent: 20pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Constantia,serif; font-size: 18pt"><B>DAYBREAK OIL AND GAS, INC.</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 20%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 38%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 42%; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">CORPORATE OFFICE:</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">REGIONAL OPERATIONS OFFICE:</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">1101 NORTH ARGONNE ROAD</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">1414 SOUTH FRIENDSWOOD DRIVE</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">SUITE A 211</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">SUITE 212</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">SPOKANE VALLEY, WA 99212</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">FRIENDSWOOD, TX 77546</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">OFFICE: (509) 232-7674&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX: (509) 232-2220</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 6pt">OFFICE: (281) 996-4176</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">&nbsp;</P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">&nbsp;</P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">James F. Westmoreland,</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 8pt">The Equity Exchange Agreement we recently signed with Reabold
California requires us to exchange all insider debt with our employees and directors for Company common stock, as a condition to completing
the transaction. We believe this transaction is in the best interests of the Company and its shareholders and employees, and that completing
the transaction is our best chance of returning to market salaries in the future.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 8pt">As you know you own a production payment interest in Daybreak&rsquo;s
oil and gas properties The total amount you invested is $550,100 thru November 30, 2021.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 8pt">We are prepared to offer you 1,222,444 shares of common stock
in exchange for your complete release of all your rights to your production payment.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 8pt">Please indicate in the space below your choice in this matter.</P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 8pt"><FONT STYLE="font-size: 16pt"><B><U>X</U></B></FONT> <FONT STYLE="font-size: 10.5pt">I
<B>DO</B> wish to exchange my production payment valued at $550,100 for 1,222,444 shares of Daybreak Common Stock. I hereby relinquish
my rights to receive future production payments form the Company&rsquo;s oil and gas properties. </FONT></P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0"><I><U>/s/ James F. Westmoreland</U></I></P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">Employee Signature</P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 8pt"><B>___</B> I <B>DO NOT</B> wish to
exchange my production payment interest for Daybreak Common Stock and wish to continue to own my production payment interest.</P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0">___________________________</P>

<P STYLE="font: 10.5pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt">Employee Signature</P>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
