Exhibit 10.13

 
LOAN PAYOFF ACKNOWLEDGEMENT AND GENERAL RELEASE AGREEMENT

THIS LOAN PAYOFF ACKNOWLEDGEMENT AND GENERAL RELEASE AGREEMENT (this
“Agreement”) effective as of October 23, 2015, is by and between Vicki P.
Rollins (“Lender”), an individual, and Eos Petro, Inc. (“Eos”), a Nevada
corporation with its principal place of business at 1999 Avenue of the Stars,
Suite 2520, Los Angeles, California 90067.  Lender and Eos are each a “Party” to
this Agreement and may be collectively referred to below as the “Parties.”
 
RECITALS
 
WHEREAS, the Parties have entered into a loan agreement, whereby Lender agreed
to provide Eos a bridge loan in the amount of $350,000 (the “Loan”) on May 22,
2012, as subsequently amended from time to time thereafter, having a maturity
date, as amended, of October 1, 2015 (the “Loan Agreement”), and in accordance
with the Loan Agreement, Lender was given a security interest in Eos’s assets;
and
 
WHEREAS, Eos intends to obtain a loan from an unrelated third party, the
proceeds of which will be wired directly to Lender to pay in full the Loan on
any date from the date first written above through December 31, 2015 (such date,
the “Payoff Date”) via wire using the wiring instructions set forth below
Lender’s signature to this Agreement.
 
NOW THEREFORE, upon the payment in full of the total amounts due on the Payoff
Date, together with any per diem, if applicable, as set forth in the payoff
statement attached hereto as Exhibit A, via wire using the wiring instructions
set forth below Lender’s signature to this Agreement, and in accordance with the
terms of the Loan and any other agreements, documents and instruments executed
in connection therewith (the “Loan Documents”), and in consideration of the
mutual promises set forth below, and other good and valuable consideration, the
receipt and sufficiency of which is acknowledged by each of the Parties, the
Parties agree as follows:
 
TERMS
 
 
1.
All of the outstanding debts, liabilities, and obligations owing by Eos to the
Lender under the Loan Documents shall be satisfied in full on the Payoff Date;

 
 
2.
The Loan Documents shall automatically terminate effective as of the Payoff Date
and all obligations of Eos shall terminate (other than any obligation under any
provision in any such documents which by its terms survives the termination of
such document) and any commitments of Lender thereunder shall automatically
terminate;

 
 
3.
All liens, security interests, mortgages, and other encumbrances of any kind,
nature, or description, whenever and however arising in favor of the Lender
under the Loan Documents on any of the assets and property, real or personal,
tangible or intangible, of Eos (collectively, the “Security Interests”) shall
automatically terminate; and

 
 
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4.
Eos is authorized to file customary UCC-3 termination statements with respect to
the Security Interests and Lender agrees to execute and deliver any additional
documents and instruments and perform any additional acts as are reasonably
necessary to effectuate the termination and release of the Security Interests in
all assets and property, real and personal, tangible and intangible, of Eos.

 
 
5.
For the avoidance of doubt, nothing contained herein is intended to impact the
validity of the 175,000 warrants at an exercise price of $2.50 per share and
75,000 warrants at an exercise price of $4.00 per share issued to Lender by Eos
on July 1, 2014, as consideration for Lender’s agreement to drop the interest
rate on the Loan to be 0%, retroactively to the initial date the Loan was made
(the “Warrants”). Such Warrants remain in full force and effect.

 
 
6.
In consideration of the terms of this Agreement, and other valuable
consideration, except for the obligations of the Parties under this Agreement,
including but not limited to the obligations set forth in Sections 1 through 5
above and Exhibit A attached hereto, Eos, on the one hand, and Lender, on the
other hand, on behalf of themselves and their current and former affiliates,
agents, partners, associates, members, consultants, employees, officers,
directors, representatives, attorneys, related or affiliated companies,
predecessors, successors and all other persons or entities acting by, through,
or in concert with them, hereby knowingly, voluntarily and expressly release,
remit and forever discharge each other, and their respective current and former
affiliates, agents, partners, associates, members, consultants, employees,
officers, directors, representatives, insurers, attorneys, related or affiliated
companies, predecessors and successors and, all other persons or entities acting
by, through, or in concert with them, of and from any and all claims, demands,
liens, agreements, contracts, covenants, promises, actions, suits, causes of
action, obligations, controversies, debts, costs, charges, losses, expenses,
damages, judgments, attorneys’ fees or expenses, orders and liabilities of
whatever kind or nature, at law or in equity, in tort or in contract, by
statute, pursuant to case law or otherwise, whether now known or unknown, vested
or contingent, suspected or unsuspected, and which have existed or may have
existed, which do exist or may in the future exist arising out of or relating to
facts, events, occurrences, or omissions up to and including the Payoff Date in
accordance with Exhibit A, including, but not limited to, claims brought or
which could have been brought by either Party relating to the disputes between
them.

 
 
7.
The Parties agree and acknowledge that any and all events of default which may
have occurred under the Loan Documents on or prior to the Payoff Date are hereby
waived, and the Parties further acknowledge that the Loan Documents will be
terminated, cancelled, and of no force and effect, other than this Agreement and
Warrants, as of the Payoff Date.  Additionally, Lender further agrees that by
accepting the payment amount delivered to Lender on the Payoff Date, Lender will
release all claims and assertions of claims of whatever kind of nature
whatsoever arising out of or related to the Loan

 

 
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Documents, other than this Agreement and the Warrants, occurring on or prior to
the Payoff Date.

 
 
8.
Eos and Lender understand that this Agreement includes their release of unknown
claims.  The parties acknowledge that they have been advised by legal counsel
and are familiar with California Civil Code § 1542, which provides as follows:

 
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR.
 
Having been fully informed of the provisions of California Civil Code § 1542,
and any other applicable law of similar import or effect, by their signatures
below Eos and Lender nevertheless hereby waive any rights which they may
otherwise have to dispute the scope of this Agreement, or the releases contained
herein, on the ground of said code section, laws or theories, as well as any
similar statute or law of any other jurisdiction.
 
[SIGNATURE PAGE FOLLOWS]
 

 
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Vicki P. Rollins
 
 
By: /s/ Vicki P. Rollins
 
 
All wires for full payment of the Loan on the Payoff Date should be sent to:
 
(Physical Address of Bank):
______________________________
______________________________
______________________________
For credit to the account of:  
______________________________
ABA Routing Number:
______________________________
Account No.:
______________________________
For international wires add:
______________________________
 
 
ACKNOWLEDGED AND AGREED TO BY:
 
Nikolas Konstant
 
By:    /s/ Nikolas Konstant
Title: Chairman of the Board and CFO of Eos Petro, Inc.
 
   

 
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Exhibit A – Payoff Statement

UNPAID PRINCIPAL: $200,000.00
 
ANNUAL INTEREST RATE: 0%*
 
PER DIEM INTEREST AMOUNT: $0
 
LOAN MATURITY DATE: October 1, 2015
 
TOTAL LOAN PAYOFF AMOUNT AT ANY TIME ON OR PRIOR TO DECEMBER 31, 2015:
$200,000.00
 

 

 

 

 

 

 

 
(*)           Per the terms of an amendment via letter agreement dated July 1,
2014 by and between Lender and Eos, principal amount of the Loan was deemed to
not bear any interest, retroactively to the initial date the Loan was made.
 

 
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