EXHIBIT 10.28

SIXTH AMENDMENT TO PURCHASE AND SALE AGREEMENT
Trinity Bay, Redfish Reef, Fishers Reef, North Point Bolivar Fields
in Galveston and chambers Counties, Texas
 
This SIXTH AMENDMENT TO PURCHASE AND SALE AGREEMENT (the “Sixth Amendment”) is
dated effective as of April 24, 2007, and is made by and between Masters
Resources, LLC, and Masters Oil & Gas, LLC, both Texas limited liability
companies having their respective principal places of business at 9801
Westheimer, Suite 1070, Houston, Texas 77042 (collectively, “Masters”), and
Tekoil and Gas Gulf Coast, LLC, a Delaware limited liability company, having its
principal place of business at 5036 Dr. Phillips Blvd., Suite 232, Orlando,
Florida 32819 (“Buyer”) (Masters and Buyer are sometimes called collectively the
“parties” and individually “party”).

RECITALS

On November 13, 2006, Masters and Tekoil and Gas Corporation, a Delaware
corporation (“Original Buyer”), executed and delivered a Purchase and Sale
Agreement, dated effective as of October 1, 2006, covering the “Assets”
described therein. On December 29, 2006, Masters and Original Buyer executed and
delivered that certain First Amendment to Purchase and Sale Agreement also
covering the Assets. On February 8, 2007, the parties contemporaneously executed
and delivered that certain Second Amendment and that certain Assignment and
Assumption Agreement (the “Assignment”) by and between Buyer and Original Buyer.
On March 1, 2007, Masters and Buyer executed and delivered that certain Third
Amendment to Purchase and Sale Agreement also covering the Assets. On March 22,
2007 Masters and Buyer executed and delivered that certain Fourth Amendment to
Purchase and Sale Agreement also covering the Assets. On April 12, 2007, Masters
and Buyer executed and delivered that certain Fifth Amendment to Purchase and
Sale Agreement (the “Fifth Amendment”) also covering the Assets (the Purchase
and Sale Agreement, the First Amendment to Purchase and Sale Agreement, the
Second Amendment to the Purchase and Sale Agreement, the Third Amendment to the
Purchase and Sale Agreement, the Fourth Amendment to the Purchase and Sale
Agreement and the Fifth Amendment to the Purchase and Sale Agreement are herein
collectively referred to as the “Original Agreement”). The parties now desire to
amend the Original Agreement in certain respects. Accordingly, the parties agree
as set out in this Sixth Amendment. (Unless otherwise noted, defined terms used
in this Sixth Amendment shall have the meanings ascribed to them in the Original
Agreement).

I. AMENDMENTS

A. The opening paragraph of Section 2.1 of the Original Agreement is deleted and
the following is inserted in lieu thereof:

“2.1 Purchase Price

The Purchase Price for the Assets will be Thirty Million and No/100 Dollars
($30,000,000.00), plus 9,000,000 shares of common stock of Original Buyer1 (the
“Common Stock”), plus the reservation at Closing by Masters of the overriding
royalty interests described in this Section 2.1 hereinbelow (as amended by the
Fifth Amendment). Such overriding royalty interests shall be subject to a deed
of trust in favor of Buyer securing the obligations of Masters under the
separately executed Erskine Indemnity Agreement between Masters and Buyer
providing that the revenue and proceeds from such interests shall be deposited
to an account with a financial institution and subject to an account control
agreement providing that amounts therein may be used, at Buyer’s sole
discretion, if the Erskine dispute is not settled to the reasonable satisfaction
of Buyer, as further provided in the Indemnity Agreement."
 

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1 Both parties acknowledge that all references to “Buyer” in Section 2.1 (B) of
the Original Agreement shall be amended to “Original Buyer.”
 

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B.  The reference in the first line of Section 2.1(B) (as amended by the Fifth
Amendment) to 4,000,000 shares is deleted and replaced with “9,000,000 shares”.

C. Section 8.1 of the Original Agreement is deleted and the following is
inserted in lieu thereof:

 
“8.1
Date, Time and Place of Closing

Unless the parties agree otherwise in writing and subject to the provisions in
this Agreement, the completion of the transaction contemplated by this Agreement
(the “Closing”) will be held on or before May 11, 2007, at 10:00 a.m. Central
Standard Time (or such earlier date or time as the parties may agree). The
Closing will be held at the offices of Masters as set forth in the opening
paragraph of this Agreement (or such other place as the parties may agree). In
the event that the Closing does not occur before the close of business at 5:00
p.m. on May 11, 2007, Masters shall have the right to terminate this Agreement
and to retain the Deposit.”

D. That certain Amended and Restated Subscription Agreement between Masters and
Original Buyer of even date of the Fifth Amendment and substantially in the form
attached as Exhibit C thereto is hereby superseded entirely by a certain Second
Amended and Restated Subscription Agreement between Masters and Original Buyer
of even date herewith substantially in the form attached hereto as Exhibit A.

E. The Registration Rights Agreement executed December 29, 2006 by and between
Masters and Original Buyer in connection with the Subscription Agreement, is
subject to the amendments made herein and the Common Stock described herein
shall constitute the “Registrable Securities” thereunder.
 
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II. MISCELLANEOUS

A. To the extent any provision of the Original Agreement, conflicts with any
provision of this Sixth Amendment, the provisions of this Sixth Amendment shall
control and be used to determine the obligations of the Parties.

B. The parties ratify confirm and adopt the Original Agreement as amended and
supplemented by this Sixth Amendment.

C. Facsimile delivery of this Sixth Amendment signed by each party to the other
shall be binding and effective the same as if an original signed copy has been
delivered by each party to the other. This Sixth Amendment may be executed in
multiple counterparts, each of which shall be considered an original and all of
which together shall constitute one and the same document.

IN WITNESS WHEREOF, the parties hereto have executed this Sixth Amendment as of
the date and year first above written.
 
[SIGNATURE PAGE FOLLOWS]

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TEKOIL AND GAS GULF COAST, LLC
 
By: Tekoil & Gas Corporation,
Its Sole Member
 
 
By: /s/ Mark S. Western 

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Name: Mark Western
Title: President

      MASTERS RESOURCES, LLC: MASTERS OIL & GAS, LLC:  
   
   
  By: /s/ John W. Barton By:   /s/ John W. Barton

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Name: John W. Barton
Title: Manager

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Name: John W. Barton
Title: Manager

 

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EXHIBIT A TO SIXTH AMENDMENT
 
TEKOIL & GAS CORPORATION
 
SECOND AMENDED AND RESTATED
SUBSCRIPTION AGREEMENT
 
This Agreement supersedes and replaces a certain Amended and Restated
Subscription Agreement executed by the parties hereto as of April 12, 2007.
 
THE COMMON STOCK HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE
SECURITIES LAWS. THE COMMON STOCK MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR
UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.
 
1. Subscription. Subscriber (as identified on the signature page attached
hereto) hereby subscribes for and agrees to be issued Nine Million (9,000,000)
shares of Common Stock (the “Common Stock”) of Tekoil & Gas Corporation, a
Delaware corporation (the “Company”), all as consideration under the “PSA”
described below. The Common Stock is also referred to herein as the
“Securities”.
 
2. Consideration. The Securities constitute a portion of the consideration
payable by the Company to Subscriber under a certain Purchase and Sale Agreement
dated November ___, 2006, and as amended December 29, 2006, in connection with
the acquisition and sale of certain assets described therein, as amended through
the date hereof (referred to together as the “PSA”). Capitalized terms used
herein and not otherwise defined have the meanings ascribed to them in the PSA.
 
3. Subscriber's Representations and Warranties. Subscriber represents, warrants,
acknowledges and agrees that:
 
(a) Subscriber is a resident of the state indicated on the signature page
hereof, is legally competent to execute this Second Amended and Restated
Subscription Agreement, and:
 
(i) if Subscriber is an individual, has his or her principal residence in such
state;
 
(ii) if Subscriber is a corporation, partnership, trust, limited liability
company or other form of business organization, has its principal office in such
state; or
 
(iii) if Subscriber is a corporation, partnership, trust, limited liability
company or other form of business organization, Subscriber has not been
organized for the specific purpose of acquiring the Common Stock.
 
(b) Subscriber has not been offered the Securities by any form of general
solicitation or general advertising, including but not limited to any
advertisement, article, notice or other communication published in any
newspaper, magazine, or similar media or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.
 

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(c) Subscriber has had access during the course of this transaction and prior to
the issuance of the Securities to all information necessary to enable Subscriber
to evaluate the merits and risks of a prospective investment in the Company
(including, without limitation, the periodic and other reports filed by the
Company with the U.S. Securities and Exchange Commission (the “SEC”) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), and
Subscriber has had the opportunity to ask questions of and receive answers from
the officers and directors of the Company, or a person or persons acting on its
behalf, concerning the terms and conditions of the offering and all questions
raised by Subscriber have been answered to the full satisfaction of Subscriber.
 
(d) There are substantial restrictions on the transferability of the Securities
and, accordingly, Subscriber will need to bear the economic risk of the
investment in the Securities for an indefinite period of time and will not be
readily able to liquidate the investment in case of an emergency.
 
(e) Subscriber understands that the Company has a limited financial or operating
history, each of the Securities is a speculative investment which involves a
high degree of financial risk, and there is no assurance of any economic, income
or tax benefit from such investment.
 
(f) In making this investment, Subscriber is relying solely upon the advice of
Subscriber's personal tax advisors, and not the Company nor its advisers and
counsel, with respect to the tax aspects of an investment in the Securities.
 
(g) If Subscriber is a corporation, partnership, trust, limited liability
company, employee benefit plan or other entity, Subscriber is authorized and
qualified to become a stockholder of the Company and the person signing this
Second Amended and Restated Subscription Agreement on behalf of such entity has
been duly authorized by such entity to do so.
 
(h) No representations or warranties have been made to Subscriber by the Company
or any officer, employee, agent or affiliate of the Company (other than those
set forth in the PSA), and Subscriber's investment decision has been based
solely upon Subscriber's independent evaluation and due diligence, if any, of
the Company.
 
(i) Subscriber is experienced in evaluating and investing in early stage
companies such as the Company. Subscriber is experienced in business matters and
regards himself, herself or itself as a sophisticated investor able to evaluate
investment and financial information and to choose independent professional
advisors to assist in such evaluation and, either alone or with such advisers,
has such knowledge and experience in financial and business matters that
Subscriber is capable of evaluating the merits and risks of an investment in the
Securities and has the capacity to protect Subscriber’s own interests in
connection with Subscriber’s proposed investment in the Securities.
 
(j) Subscriber’s aggregate commitments to investments that are not readily
marketable are not disproportionate to Subscriber’s net worth and an investment
in the Securities will not cause such aggregate commitment to become excessive.
Subscriber has adequate means of providing for Subscriber’s current needs and
possible personal and family contingencies. Subscriber will not be readily able
to liquidate the investment in the case of an emergency, and Subscriber has no
need for liquidity in this investment in the Company.
 
(k) Subscriber has a preexisting business or personal relationship with the
Company or with one or more of its officers or directors. Except for
Subscriber’s intention to distribute the shares (or cause them to be issued
directly) to its members, pro-rata, on condition that they make the
representations, warranties and agreements herein provided in favor of Company,
Subscriber is acquiring the Securities solely for Subscriber’s own account for
investment (and not for the account of any other person), and not with a view
to, or for, any resale, distribution, fractionalization or other transfer
thereof, and Subscriber has no present plans to enter into any contract,
undertaking, agreement or arrangement for any such resale, distribution,
fractionalization or transfer.
 
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4. Representations and Warranties Concerning Suitability and Accredited Investor
Status. Subscriber hereby represents and warrants to the Company that Subscriber
is an “Accredited Investor” (as defined under Regulation D as promulgated and
amended by the SEC pursuant to the Securities Act) on the basis of the
representations made by Subscriber to the Company below. Subscriber hereby
represents and warrants and agrees that:
 
(a) Subscriber has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of an investment in
the Company and has obtained sufficient information from the Company to evaluate
the merits and risks of an investment in the Company.
 
(b) Subscriber has determined that the Securities are a suitable investment for
Subscriber. Subscriber is able to bear the economic risk of the investment in
the Company (including a complete loss thereof) and has adequate financial or
other means for providing for Subscriber's current needs and contingencies and
has no need for liquidity in this investment.
 
5. Fees and Expenses. Subscriber shall pay for all its own fees and expenses in
connection with this subscription, including without limitation legal fees and
fees of its advisors and counsel, if any.
 
6. Restrictions. The Subscriber will not at any time make any disposition of any
of the Securities except in accordance with applicable federal and state
securities laws and the legend set forth below. The certificates for the
Securities, the Note and the Conversion Stock to be issued to the undersigned
will bear a legend in substantially the following form:
 
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE. SUCH SECURITIES
MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE
SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 OR SUCH LAWS.
 
In the event the Common Stock may be publicly resold under the Registration
Rights Agreement or otherwise under applicable securities laws, Subscriber
agrees that it will not publicly resell more than 250,000 shares thereof per
calendar week. Subscriber agrees that a legend reflecting the foregoing and
reasonable transfer restrictions consistent therewith may be placed on the
Common Stock.
 
7. Miscellaneous. The terms and conditions contained in this Second Amended and
Restated Subscription Agreement (together with the PSA and a certain
Registration Rights Agreement executed by the Company and Subscriber of even
date herewith) constitute the entire agreement between the parties with respect
to the subject matter hereof and supersede all previous agreements and
understandings, whether oral or written, between the parties hereto with respect
to the subject matter hereof. This Second Amended and Restated Subscription
Agreement shall be construed in accordance with and governed by the laws of the
State of Delaware. This Second Amended and Restated Subscription Agreement may
be amended only by a writing executed by the Company and Subscriber.
 
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IN WITNESS WHEREOF, Subscriber has executed this Second Amended and Restated
Subscription Agreement on the date indicated on the signature page hereof.
 
[SIGNATURES ON NEXT PAGE]
 
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The undersigned Subscriber confirms and certifies that Subscriber has read this
entire Second Amended and Restated Subscription Agreement and understands the
provisions hereof, and that the undersigned has executed this Second Amended and
Restated Subscription Agreement as of the date set forth below.
 
DATED: April ____, 2007
 
Which will be held by Subscriber(s) in the following manner, if applicable:

(     )
Community Property
(     )
Joint Tenants with Right of Survivorship
       
(     )
Tenants in Common
(     )
Separate Property
       
(     )
Other: (e.g. individual, corporation, partnership, limited liability company,
trust, investment company). Please indicate:_____________.

 
Subscriber Signature(s)

        MASTERS RESOURCES, LLC      
MASTERS OIL & GAS, LLC
       

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Name and Title of Signatory if Subscriber is
an entity
   

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Signature    

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Signature of Joint Subscriber                

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Social Security or Tax ID Number 
   

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Social Security or Tax ID Number of Joint Subscriber                

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Address    

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Address of Joint Subscriber                

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          Reviewed and Advised By (if any):     Accepted By:                

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Subscriber’s Professional Advisor     
TEKOIL & GAS CORPORATION,
a Delaware corporation
               

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Name    

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Signature                

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Address
   

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Name/Title

 
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Note: 
 
In the case of subscription by,
 

 
·
Joint Tenants with Rights of Survivorship or Tenants in Common, all tenants must
execute this subscription,

 

 
·
Husband and Wife, as community property, one signature only is required.

 

 
·
A Trust, the Trustee must sign and a copy of the Trust Agreement should be
provided.

 

 
·
A Partnership, a copy of the Statement of Partnership or the Partnership
Agreement should be provided, and execution must be by the number of partners
required therein to bind the Partnership.

 

 
·
A Corporation, a resolution of the Board of Directors authorizing the
subscription and certified by the Secretary should be included.

 
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