Exhibit 10.11

 

 

AGREEMENT AND MUTUAL RELEASE

 

This AGREEMENT AND MUTUAL RELEASE (this “Agreement”) is made and entered into as
of July 21, 2016 by and among EnergyTEK Corp., a Nevada corporation (“ENTK”),
Texas Gulf Exploration & Production, Inc. a Nevada corporation and wholly-owned
subsidiary of ENTK (“TGEP”), Litigation Capital, Inc., a Nevada corporation
(“LCI”), Texas Gulf Oil & Gas, Inc., a Nevada corporation (“TGOG”), Timothy J.
Connolly, individually (“Connolly”), Craig Crawford, individually (“Crawford”),
Russell Kidder, individually (“Kidder”), Jonathan Read, individually (“Read”),
Wagley-EnergyTEK J.V. LLC, a Texas limited liability company (“Wagley J.V.”) and
Damon Wagley, individually (“Wagley”) (each of the foregoing, a “Party” and
collectively, the “Parties”).

 

In consideration for the mutual release of claims contained herein and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the Parties hereby agree as follows:

 

1.Partial Payment of Debt; Return by TGOG of ENTK Shares. TGOG is owed
approximately $228,000 by ENTK. Simultaneously with payment by ENTK of $50,000
as a partial payment toward notes payable held by TGOG, it shall cancel
1,000,000 shares of ENTK common stock currently owned by TGOG and deliver the
certificates duly endorsed in blank with medallion guarantees to ENTK.

 

2.Assumption of ENTK Debt by TGEP; Release by TGOG. Simultaneously with the
execution of this Agreement by the Parties, TGEP shall assume from ENTK and/or
its affiliates all debt, including notes payable, and all other sums owed to
TGOG and/or its affiliates in the approximate total amount of $178,000 (pending
confirmation by ENTK’s auditors of the exact amount as of the date thereof).
Immediately upon the assumption of such debt by TGEP, TGOG and/or its affiliates
and TGEP shall forever release ENTK and/or its affiliates other than TGEP from
any and all liability for such debt. TGOG represents that it is the holder of
the Notes reflecting the debt and it shall not assign or negotiate such debt in
contravention of this Agreement.

 

3.Redemption by ENTK of Series B Preferred Stock; Acquisition by LCI of
Subsidiary Equity and Debt. Within five business days from the execution by all
Parties of this Agreement, ENTK shall redeem all shares of ENTK’s Series B
Preferred Stock held by LCI as of the date hereof for the following
consideration: (i) the immediate issuance to LCI of 300,000 shares of ENTK
common stock and (ii) upon the earlier of (a) the closing of a transaction
pursuant to which ENTK acquires Timefire LLC or another entity in a change of
control transaction (the “Timefire Acquisition”) or (b) 90 days from the
execution by all Parties of this Agreement, the transfer to LCI of all
outstanding equity interests in each of TGEP and Legal Capital Corp., a Nevada
corporation and wholly-owned subsidiary of ENTK.

 

LCI hereby acknowledges and agrees that in consideration for the redemption of
its shares of Series B Preferred Stock and for acquiring the equity interests of
TGEP and Legal Capital Corp., upon acquisition of the TGEP equity interests it
shall assume approximately $178,000 in debt which shall be owed by TGEP to TGOG
and/or its affiliates pursuant to Section 2, above.

 

4.Resignation and Compensation of Crawford. Simultaneously with the execution of
this Agreement by the Parties, Crawford shall resign from the ENTK board of
directors and as an officer of ENTK.

 

ENTK shall, on or before the earlier of (i) the closing of the Timefire
Acquisition or (ii) within 90 days from the execution by all Parties of this
Agreement, pay Crawford $6,000 in fees for director service which remain owed
and outstanding as of his resignation, and Crawford acknowledges that he is not
owed any other funds by ENTK. Crawford agrees to promptly execute and deliver
any representation letters requested by ENTK’s auditors relating to the
financial statements being prepared in connection with the Timefire Acquisition
and related transactions and reports and registration statements which ENTK may
file with the Securities and Exchange Commission.

 

Simultaneously with the execution of this Agreement by the Parties, Crawford
shall also resign as a Joint Venture Manager of Wagley J.V.

 

5.Transfer of Wagley Shares into Escrow with Voting Proxy. Simultaneously with
the execution of this Agreement by the Parties, Wagley J.V. shall transfer into
the custody of Kidder, as escrow agent, 20,000,000 shares of ENTK common stock
and shall provide Read with the voting proxy for such shares. If the Timefire
Acquisition has not closed within 90 days from the execution by all Parties of
this Agreement, the escrowed shares shall be returned to Wagley J.V. and Read’s
voting proxy shall terminate. If the Timefire Acquisition closes within 90 days,
Section10, below, shall apply.

 

6.Substitution of Wagley as J.V. Manager. Effective immediately following the
transfer of shares into escrow as described in Section 5, above, Wagley shall
appoint Kidder as a Joint Venture Manager of Wagley J.V. Immediately following
the appointment of Kidder, Wagley shall resign as a Joint Venture Manager.

 

7.Mutual Releases. Simultaneously with the execution of this Agreement, the
Parties shall enter into mutual release agreements in the form attached as
Exhibit A hereto.

 

8.TGOG Waiver of Change of Control Provision. Simultaneously with the execution
of this Agreement by the Parties, TGOG shall permanently waive Section 4(a)
relating to “Change of Control Limitations” in that certain Securities Purchase
Agreement between TGOG and Cavalry, dated as of August 14, 2015 and any
substantially similar change of control limitation contained in any stock
purchase agreement entered into by TGOG in or around August 2015, including, but
not limited to, with Hudson Bay.

 

9.Assistance in Obtaining Cooperation. Connolly shall use his best efforts to
assist ENTK in obtaining necessary signatures and the reasonable cooperation of
former directors, employees and affiliates of ENTK in facilitating the
transactions contemplated by certain of the Parties hereto, including but not
limited to the Timefire Acquisition.

 

10.Dissolution of Wagley J.V. Upon closing of the Timefire Acquisition (provided
that such closing occurs within 90 days from the execution of this Agreement by
the Parties), Wagley J.V. shall be dissolved and ENTK shall have the right,
exercisable for six months from the closing of the Timefire Acquisition, to
cancel the 20,000,000 shares of ENTK common stock shares held in escrow pursuant
to Section 5, above.

 

11.Severability. In the event any parts of this Agreement are found to be void,
the remaining provisions of this Agreement shall nevertheless be binding with
the same effect as though the void parts were deleted.

 

12.Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument. The execution of this Agreement may be
by actual or facsimile signature.

 

13.Benefit. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their legal representatives, successors and assigns.

 

14.Notices and Addresses. All notices, offers, acceptance and any other acts
under this Agreement (except payment) shall be in writing, and shall be
sufficiently given if delivered to the addressees in person, by FedEx or similar
receipted next business day delivery, or by email delivery followed by overnight
next business day delivery to the addresses listed on the signature page hereto
or to such other address as any of them, by notice to the other may designate
from time to time. Time shall be counted to, or from, as the case may be, the
date of delivery.

 

15.Attorneys’ Fees. In the event that there is any controversy or claim arising
out of or relating to this Agreement, or to the interpretation, breach or
enforcement thereof, and any action or proceeding is commenced to enforce the
provisions of this Agreement, the prevailing party shall be entitled to
reasonable attorneys’ fees, costs and expenses (including such fees and costs on
appeal).

 

16.Oral Evidence. This Agreement constitutes the entire Agreement between the
parties and supersedes all prior oral and written agreements between the parties
hereto with respect to the subject matter hereof. Neither this Agreement nor any
provision hereof may be changed, waived, discharged or terminated orally, except
by a statement in writing signed by the party or parties against which
enforcement or the change, waiver discharge or termination is sought.

 

17.Governing Law. This Agreement and any dispute, disagreement, or issue of
construction or interpretation arising hereunder whether relating to its
execution, its validity, the obligations provided herein or performance shall be
governed or interpreted according to the internal laws of the State of Nevada
without regard to choice of law considerations.

 

18.Jurisdiction and Venue. Any action, suit or proceeding arising out of, under
or in connection with this Agreement shall be brought and determined in the
appropriate federal or state court in the State of Arizona and in no other
forum. The parties hereby irrevocably submit to the jurisdiction of any such
Arizona state court or federal court having jurisdiction in Phoenix, Arizona in
any such suit, action or proceeding arising out of or relating to this
Agreement.

 

19.Removal of Legends. Subject to compliance with the registration requirements
of the Securities Act of 1933 and Rule 144 thereunder, in the event any current
or prior ENTK director, employee, consultant or affiliate shall seek to have the
restrictions removed on ENTK common shares previously authorized by the ENTK
Board of Directors and issued for compensation or in lieu of payment of amounts
due the holder of the shares, The Company shall promptly complete any such
lawful request and will be responsible for the fees of its transfer agent, the
legend removal opinion of its legal counsel and all DTC fees associated with
such issuance.

 

[Signature pages follow.]

 

 

 

 

AGREED:

 

 

EnergyTEK Corp.

 

By: _________________________

Name:

Title:

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

Texas Gulf Exploration & Production, Inc.

 

By: _________________________

Name:

Title:

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

 

_________________________

Timothy J. Connolly, individually

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

 

_________________________

Craig Crawford, individually

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

[Signature pages continue.]

 

   

 

Litigation Capital, Inc.

 

By: _________________________

Name:

Title:

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

Texas Gulf Oil & Gas, Inc.

 

By: _________________________

Name:

Title:

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

Wagley-EnergyTEK J.V. LLC

By: _________________________

Name:

Title:

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

 

_________________________

Damon Wagley, individually

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

 

_________________________

Jonathan Read, individually

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

 

_________________________

Russell Kidder, individually

 

Address: _____________________

_____________________________

_____________________________

Email: _______________________

 

 

 

 

Exhibit A

Mutual Release