Document:

BBY (8/2/14) Ex 10.2

Exhibit 10.2

BEST BUY CO., INC.
DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT
FOR NON-U.S. DIRECTORS
Award Date:

		
	I.
	The Award. As of the Award Date set forth above, Best Buy Co., Inc. (“Best Buy”) grants to you the number of restricted stock units (the “Units”) stated in the Award Notification (the “Award”) accompanying this Agreement (this “Agreement”), on the terms and subject to the conditions contained in this Agreement and the Best Buy Co., Inc. 2004 Omnibus Stock and Incentive Plan, as amended (the “Plan”).  Capitalized terms not defined in the body of this Agreement are defined in Section 9 below.  By your acceptance of this Award, you acknowledge receipt of a copy of the Prospectus for the Plan and your agreement to the terms and conditions of the Plan and this Agreement.

		
	II.
	Units.

		
	2.1
	Vesting; Holding Period.  Each Unit entitles you to receive 1 share of common stock of Best Buy (the “Shares”).  All of the Units will vest in full on the one-year anniversary of the Award Date (the “Vesting Date”).  Within 30 days after conclusion of your service on the Board of Directors of Best Buy (the “Board”), each vested Unit will be exchanged for 1 share of common stock of Best Buy (the “Shares”).  

		
	2.2
	Transfer Restrictions.  While you are serving on the Board, you may not sell, assign, pledge or otherwise transfer any vested or unvested Units (or any interest in or right to the Units), other than by will or the laws of descent and distribution, and any such attempted transfer will be null and void (the “Transfer Restrictions”).  If your service on the Board is terminated prior to the Vesting Date for any reason other than Cause, a pro rata portion (based on your length of service during the vesting period) of the Units will vest as of such termination date.  All unvested Units will be forfeited as of such date.  If your service on the Board is terminated prior to the Vesting Date for Cause, all Units will be forfeited as of the date of termination.

		
	2.3
	Other Restrictions. The Units are subject to forfeiture to Best Buy as provided in this Agreement and the Plan.

		
	2.4
	Limitation of Rights Regarding Shares.  Until issuance of the Shares, you will not have any rights of a shareholder with respect to your Units.

		
	2.5
	Income Taxes. You are liable for any Tax-Related Items (as defined in Section 5 below).  Best Buy recommends that you consult with your own tax advisor regarding the tax consequences of the Units. 

		
	III.
	Restrictive Covenant and Forfeiture.  By accepting the Award, you agree to the Transfer Restrictions and the restrictions and agreements contained in this Article III (the “Restrictive Covenants”); and you agree that the Restrictive Covenants and the remedies described in this Article III are reasonable and necessary to protect the legitimate interests of Best Buy.  Notwithstanding anything in this Agreement, if you are an attorney, the Restrictive Covenants apply to you only to the extent they are not inconsistent with the rules of professional conduct applicable to you.

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	3.1
	Confidentiality.  In consideration of the Award, you acknowledge that the Company Group operates in a competitive environment and has a substantial interest in protecting its Confidential Information, and you agree, during your service with the Company Group and thereafter, to maintain the confidentiality of the Confidential Information and to use such Confidential Information for the exclusive benefit of the Company Group.

		
	3.2
	Non-Solicitation.  During the time period you serve on the Board and ending on the first anniversary of the date of your termination of service, you shall not:

		
	(a)
	solicit, induce or attempt to induce any employee, contract worker, consultant or other independent agent of the Company Group to cease employment or engagement with the Company Group, or in any way interfere adversely with the relationship between any such employee, contract worker, consultant or other independent agent and the Company Group;

		
	(b)
	induce or attempt to induce any employee, contract worker, consultant or other independent agent of the Company Group to work for, render services to, provide advice to, or supply Confidential Information to any third person or entity;

		
	(c)
	knowingly employ, or otherwise knowingly pay for services rendered by, any employee of the Company Group in any business enterprise with which you may be associated, connected or affiliated;

		
	(d)
	induce or attempt to induce any customer, supplier, licensee, licensor or other business relation of the Company Group to cease doing business with the Company Group, or in any way interfere with the then existing business relationship between any such customer, supplier, licensee, licensor or other business relation and the Company Group; or

		
	(e)
	assist, solicit, or encourage any other person, directly or indirectly, in carrying out any activity set forth above that would be prohibited by any of the provisions of this Agreement if such activity were carried out by you.  In particular, you will not, directly or indirectly, induce any employee, contract worker, consultant or other independent agent of the Company Group to carry out any such activity.

		
	3.3
	Violations.  In the event (a) you breach any of the Restrictive Covenants, (b) you engage in conduct materially adverse to the interests of the Company Group, including any material violations of any Company Group policy, (c) you engage in intentional misconduct that caused or contributed to the restatement of any financial statements of Best Buy, (d) you materially violate the terms of any agreement to which you and a member of the Company Group is a party or (e) you engage in a criminal act, fraud, or violation of any securities laws, then notwithstanding any other provision of this Agreement to the contrary, Best Buy, in its sole discretion, may take one or more of the following actions with respect to your Award (and shall, in any event, take all action required by applicable law):

		
	(i)
	require you to immediately return to Best Buy any Units or Shares still under your control; and 

		
	(ii)
	require you to promptly reimburse Best Buy the fair market value of any such Units or Shares that are no longer under your control.

2

		
	3.4
	Recovery Policy.  Amounts paid under the Agreement shall be subject to recovery by Best Buy in accordance with and to the maximum extent required under the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

		
	3.5
	Right of Set-Off.  By accepting the Award, you consent to a deduction from any amounts any member of the Company Group owes you from time to time (including amounts owed to you as fees, wages or other compensation or fringe benefits, as well as any other amounts owed to you by any member of the Company Group), to the extent of the amounts you owe any member of the Company Group under this Section 3.5.  Whether or not Best Buy elects to make any set-off in whole or in part, if Best Buy does not recover by means of set-off the full amount you owe, calculated as set forth above, you agree to immediately pay the unpaid balance to Best Buy.

		
	3.6
	Partial Invalidity.  If any portion of this Article III is determined by any court of competent jurisdiction to be unenforceable in any respect, it shall be interpreted to be valid to the maximum extent for which it reasonably may be enforced, and enforced as so interpreted, all as determined by such court in such action.  You acknowledge the uncertainty of the law in this respect and expressly stipulate that this Agreement is to be given the construction that renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

		
	3.7
	Remedy for Breach.  You agree that a breach of any of the Restrictive Covenants would cause material and irreparable harm to Best Buy that would be difficult or impossible to measure, and that damages or other legal remedies available to Best Buy for any such injury would, therefore, be an inadequate remedy for any such breach.  Accordingly, you agree that if you breach any Restrictive Covenant, Best Buy shall be entitled, in addition to and without limitation upon all other remedies Best Buy may have under this Agreement, at law or otherwise, to obtain injunctive or other appropriate equitable relief, without bond or other security, to restrain any such breach.  Such equitable relief in any court shall be available to Best Buy in lieu of, or prior to or pending determination in any arbitration proceeding.  You further agree that the duration of the Restrictive Covenants shall be extended by the same amount of time that you are in breach of any Restrictive Covenant.

		
	IV.
	Nature of Grant.  In accepting the Award, you acknowledge, understand and agree that: 

		
	4.1
	the Plan is established voluntarily by Best Buy, it is discretionary in nature and it may be modified, amended, suspended or terminated by Best Buy at any time; 

		
	4.2
	the grant of the Units is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units, or benefits in lieu of restricted stock units, even if restricted stock units have been granted in the past; 

		
	4.3
	all decisions with respect to future grants of restricted stock units, if any, will be at the sole discretion of Best Buy; 

		
	4.4
	you are voluntarily participating in the Plan; 

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	4.5
	the Award and your participation in the Plan will not create a right to continued service on the Board or derogate from any right of Best Buy’s shareholders to remove you from the Board at any time in accordance with Best Buy’s bylaws and any applicable law; 

		
	4.6
	the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; 

		
	4.7
	no claim or entitlement to compensation or damages shall arise from forfeiture of the Units resulting from your ceasing to provide service to Best Buy (for any reason whatsoever) and, in consideration of the grant of Units to which you are otherwise not entitled, you irrevocably agree never to institute any claim against Best Buy, waive your ability, if any, to bring any such claim and release Best Buy from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claims;

		
	4.8
	unless otherwise provided in the Plan or by Best Buy in its discretion, the Award and the benefits evidenced by this Agreement do not create any entitlement to have the Award or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and

		
	4.9
	Best Buy shall not be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Units or any amounts due to you pursuant to the settlement of the Units or the subsequent sale of any Shares acquired upon settlement.

		
	V.
	Responsibility for Taxes.  

		
	5.1
	Regardless of any action Best Buy takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount, if any, actually withheld by Best Buy.  You further acknowledge that Best Buy (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Units, including, but not limited to, the grant or vesting of the Units, the issuance of Shares upon settlement of the Units, the subsequent sale of such Shares and the receipt of any dividends or dividend equivalents; and (b) does not commit to and is under no obligation to structure the terms of the Award or any aspect of the Units to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result.  Further, if you have become subject to Tax-Related Items in more than one jurisdiction between the date of award and the date of any relevant taxable event, as applicable, you acknowledge that Best Buy may be required to withhold or account for Tax-Related Items in more than one jurisdiction. 

		
	5.2
	To the extent Best Buy has a withholding obligation with respect to Tax-Related Items, you authorize Best Buy or its agent, at Best Buy’s discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:  

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	(a)
	withholding from any cash compensation paid to you by Best Buy; 

		
	(b)
	withholding from proceeds of the sale of Shares acquired upon settlement of the Units either through a voluntary sale or through a mandatory sale arranged by Best Buy (on your behalf pursuant to this authorization); or

		
	(c)
	withholding in Shares to be issued upon settlement of the Units. 

The Committee shall establish the method of withholding from alternatives (a) - (c) herein and, if the Committee does not exercise its discretion prior to the applicable withholding event, then you shall be entitled to elect the method of withholding from the alternatives above.  

In the event there is a relevant taxable event for which Best Buy does not withhold amounts needed to satisfy obligations with respect to Tax-Related Items, you agree to pay or make adequate arrangements satisfactory to Best Buy to satisfy such obligations.  

		
	5.3
	To avoid negative accounting treatment, Best Buy may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, you are deemed to have been issued the full number of Shares subject to the vested Units, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of your participation in the Plan. 

		
	5.4
	You shall pay to Best Buy any amount of Tax-Related Items that Best Buy may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means described in this Article V.  Best Buy may refuse to issue or deliver the Shares or the proceeds of the sale of Shares if you fail to comply with your obligations in connection with the Tax-Related Items. 

		
	VI.
	No Advice Regarding Award.  Best Buy is not providing any tax, legal or financial advice, nor is Best Buy making any recommendations regarding your participation in the Plan or your acquisition or sale of the Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 

		
	VII.
	Data Privacy.  You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other award materials by Best Buy for the exclusive purpose of implementing, administering and managing your participation in the Plan.

You understand that Best Buy may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in Best Buy, details of all Units or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.  

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You understand that Data will be transferred to Fidelity or such other stock plan service provider as may be selected by Best Buy in the future, which is assisting Best Buy with the implementation, administration and management of the Plan.  You understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country.  You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting the Best Buy Legal Department.  You authorize Best Buy, Fidelity (or other broker designated by Best Buy) and any other possible recipients which may assist Best Buy (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan.  You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.  You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Best Buy Legal Department, 7601 Penn Avenue South, Richfield, MN 55423.  You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan.  For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact the Best Buy Legal Department.

		
	VIII.
	General Terms and Conditions.

		
	8.1
	Service and Terms of Plan.  This Agreement does not guarantee your continued service with Best Buy.  This Award is granted pursuant to the Plan and is subject to its terms.  In the event of any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.  By your acceptance of this Award, you acknowledge receipt of a copy of the Prospectus for the Plan and your agreement to the terms and conditions of the Plan and this Agreement.

		
	8.2
	Electronic Delivery and Participation.  Best Buy may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by Best Buy or a third party designated by Best Buy.  Further, the parties hereto shall be entitled to rely on delivery of a facsimile or other electronic copy of this Agreement, and delivery by either party of such facsimile or electronic copy shall be legally effective to create a valid and binding agreement between the parties in accordance with the terms hereof.

		
	8.3
	Language.  If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

		
	8.4
	Governing Law, Jurisdiction and Venue.  The Award and the provisions of this Agreement are governed by, and subject to, the laws of the State of Minnesota, without regard to the conflict of law provisions, as provided in the Plan.  You and Best Buy agree that the state and federal courts located in the State of Minnesota shall have personal jurisdiction over the parties to this Agreement, and that the sole venues to adjudicate any dispute arising under this Agreement shall be the District Courts of Hennepin County, State of Minnesota and the United States District Court for the District of Minnesota; and each party waives any argument that any other forum would be more convenient or proper.

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	8.5
	Appendix. Notwithstanding any provisions in this Agreement, the grant of Units shall be subject to any special terms and conditions set forth in the attached country-specific appendix to this Agreement (the “Appendix”).  If you relocate to one of the countries included in the Appendix, the special terms and conditions for such country will apply to you, to the extent Best Buy determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Agreement.

		
	8.6
	Imposition of Other Requirements.  Best Buy reserves the right to impose other requirements on your participation in the Plan, on the Units and on any Shares acquired under the Plan, to the extent Best Buy determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

		
	8.7
	Compliance with Law.  Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, Best Buy shall not be required to deliver any Shares issuable upon settlement of the Units prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval Best Buy shall, in its absolute discretion, deem necessary or advisable.  You understand that Best Buy is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares.  Further, you agree that Best Buy shall have unilateral authority to amend the Plan and the Agreement without your consent to the extent necessary to comply with securities or other laws applicable to issuance of the Shares.  

		
	8.8
	Insider Trading Restrictions/Market Abuse Laws.  You acknowledge that, depending on your country, you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell Shares or rights to Shares under the Plan during such times as you are considered to have “inside information” regarding Best Buy (as defined by applicable laws in your country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Best Buy insider trading policy.  You acknowledge that it is your responsibility to comply with any applicable restrictions, and you are advised to speak to your personal advisor on this matter.

		
	8.9
	Waiver. You acknowledge that a waiver by Best Buy of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by you or any other award recipient.

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	IX.
	Definitions. The following capitalized terms used herein will have the following meanings:

		
	9.1
	“Affiliate” means an entity controlled directly or indirectly by Best Buy, where “control” will mean the right, either directly or indirectly, to elect a majority of the directors thereof without the consent or acquiescence of any third party.

		
	9.2
	“Cause” means you:

		
	(a)
	are charged with, convicted of or enter a plea of guilty or nolo contendere to: (i) a felony (or a crime of comparable magnitude under applicable law), (ii) any crime involving moral turpitude, dishonesty, breach of trust or unethical business conduct, or (iii) any crime involving the business of the Company Group;

		
	(b)
	in the performance of your duties for the Board or otherwise to the detriment of the Company Group, engage in: (i) dishonesty that is harmful to the Company Group, monetarily or otherwise, (ii) willful or gross misconduct, (iii) willful or gross neglect, (iv) fraud, (v) misappropriation, (vi) embezzlement, or (vii) theft;

		
	(c)
	fail to comply with the policies or practices of the Company Group;

		
	(d)
	are adjudicated in any civil suit, or acknowledge in writing in any agreement or stipulation, to have committed any theft, embezzlement, fraud, or other act of dishonesty involving any other person;

		
	(e)
	are determined, in the sole judgment of the Board or any individual or individuals the Board authorizes to act on its behalf, to have willfully engaged in conduct that is harmful to the Company Group, monetarily or otherwise;

		
	(f)
	breach any provision of this Agreement (including but not limited to any Restrictive Covenants) or any other agreement between you and any member of the Company Group; or

		
	(g)
	engage in any activity intended to benefit any entity at the expense of the Company Group or intended to benefit any competitor of the Company Group.

		
	9.3
	“Committee” means the Compensation and Human Resources Committee of the Board (or its duly appointed agent). 

		
	9.4
	“Company Group” means, collectively, Best Buy and its Affiliates.

		
	9.5
	“Confidential Information” means all “Confidential Information” as that term is defined in Best Buy’s Confidentiality Policy, and includes, without limitation, any and all information in whatever form, whether written, electronically stored, orally transmitted or memorized relating to trade secrets, customer lists, records and other information regarding customers, price lists and pricing policies, financial information, records, ledgers and information, purchase orders, agreements and related data, business development and strategic plans, products and technologies, product tests, manufacturing costs, product or service pricing, sales and marketing plans, research and development plans, personnel and employment records, files, data and policies (regardless of whether the information pertains to you or other employees of the Company Group), tax information, business and sales methods and operations, business correspondence, memoranda and other records, inventions, improvements and discoveries, processes and methods, business operations and related data formulae, computer records and related data, know-how, research and development, trademark, technology, technical information, copyrighted material, and any other confidential or proprietary data and information which you encounter during employment, all of which are held, possessed and/or owned by the Company Group and all of which are used in the operations and business of the Company Group.  Confidential Information does not include information which is or becomes generally known within the Company Group’s industry through no act or omission by you.

8Exhibit 10.1

 

SETTLEMENT AGREEMENT AND STIPULATION

 

 

THIS SETTLEMENT AGREEMENT and Stipulation
dated as of April 3, 2014 by and between plaintiff Tarpon Bay Partners LLC (“TARPON”), and defendant Worthington Energy,
Inc. (“COMPANY”).

 

BACKGROUND:

 

WHEREAS, there are bona fide outstanding
Claims against the Company in the principal amount of not less than $1,127,495; and

 

WHEREAS, these liabilities are past due; and

 

WHEREAS, TARPON acquired such liabilities on the terms and conditions
set forth in Claim Purchase Agreement(s), subject however to the agreement of the Company and compliance with the provisions hereof;
and

 

WHEREAS, TARPON and the Company desire to resolve, settle, and
compromise certain liabilities (hereinafter collectively referred to as the “Claims”).

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1.             Defined
Terms. As used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings
to be equally applicable to both the singular and plural forms of the terms defined):

 

"AGREEMENT" shall have the meaning
specified in the preamble hereof.

 

“CLAIM AMOUNT” shall mean $1,035,473

 

"COMMON STOCK"
shall mean the Company's common stock, $0. 001 par value per share, and any shares of any other class of common stock whether now
or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets (upon
liquidation of the Company).

 

    	1

    	 

    

 

“COURT” shall
mean the Circuit Court of the Second Judicial Circuit, Leon County, Florida.

 

"DISCOUNT" shall mean thirty (30%)
percent.

 

"DTC" shall have the meaning specified
in Section 3b.

 

"DWAC" shall have the meaning specified
in Section 3b.

 

"FAST" shall have the meaning specified
in Section 3b.

 

“GROSS PROCEEDS”
shall mean proceeds from sales of Settlement Shares by TARPON.

 

“NET PROCEEDS” shall
mean Gross Proceeds less all brokerage, clearing and delivery related fees and charges associated with the generation of such Gross
Proceeds, including but not limited to, commission and execution fees, ticket and deposit fees, DTC and Non-DTC, transfer agent
and clearing agent fees.

 

"PRINCIPAL MARKET"
shall mean the Nasdaq National Market, the Nasdaq SmallCap Market, the Over the Counter Bulletin Board, OTCXD, the American Stock
Exchange or the New York Stock Exchange, whichever is at the time the principal trading exchange or market for the Common Stock.

 

“REMITTANCE AMOUNT”
shall mean NET PROCEEDS multiplied by one minus the Discount ((1 – 0.30) or 0.70);

 

“SELLER“
shall mean any individual or entity listed on Schedule A, who originally owned the Claims.

 

“SETTLEMENT SHARES”
shall have the meaning specified in Section 3a.

 

"TRADING DAY"
shall mean any day during which the Principal Market shall be open for business.

 

"TRANSFER AGENT"
shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common Stock upon
the Company's appointment of any such substitute or replacement transfer agent).

 

    	2

    	 

    

 

2.               Fairness
Hearing. Upon the execution hereof, Company and TARPON agree, pursuant to Section 3(a) (10) of the Securities Act of
1933 (the “Act”) [and the applicable section of the General Statutes of Florida], to promptly submit the terms
and conditions of this Agreement to the Court for a hearing on the fairness of such terms and conditions, and the issuance
exempt from registration of the Settlement Shares. This Agreement shall become binding upon the parties only upon entry of an
order by the Court substantially in the form annexed hereto as Exhibit A (the “Order”).

 

3.               Settlement
Shares.

 

a.               Following entry
of an Order by the Court in accordance with Paragraph 2 herein and the delivery by TARPON and Company of the Stipulation of Dismissal
(as defined below), in settlement of the Claims, the Company shall issue and deliver to TARPON shares of its Common Stock (the
“Settlement Shares”) in one or more tranches as necessary, and subject to adjustment and ownership limitations as set
forth below, sufficient to generate proceeds such that the aggregate Remittance Amount equals the Claim Amount. In addition, upon
the execution of this Agreement, the Company shall issue to TARPON a convertible promissory note in the principal amount of Seventy
Five Thousand Dollars ($75,000.00), maturing six (6) months from the date of issuance. The convertible promissory note shall have
no registration rights and shall be convertible into the common stock of the Company at any time at a conversion price equal to
50% of the low closing bid price for the thirty days prior to conversion.

 

b.              No later than
the fifth Trading Day following the date that the Court enters the Order, time being of the essence, Company shall: (i) cause its
legal counsel to issue an opinion to Company’s transfer agent, in form and substance reasonably acceptable to TARPON and
such transfer agent, that the shares of Common Stock to be issued as the Initial Issuance and any additional issuance are legally
issued, fully paid and non-assessable, are exempt from registration under the Securities Act, may be issued without restrictive
legend, and may be resold by TARPON without restriction pursuant to the Court Order; and (ii) issue the Settlement Shares, in tranches
as necessary, by physical delivery, or as Direct Registration Systems (DRS) shares to TARPON’s account with The Depository
Trust Company (DTC) or through the Fast Automated Securities Transfer (FAST) Program of DTC’s Deposit/Withdrawal Agent Commission
(DWAC) system, without any legends or restriction on transfer pursuant to the Court Order. The date upon which the first tranche
of the Settlement Shares has been received into TARPON’s account and are available for sale by TARPON shall be referred to
as the “Issuance Date”.

 

 

 

    	3

    	 

    

 

c.               The Company shall deliver to TARPON, through the initial tranche and any required additional tranches, that number of Settlement
Shares the proceeds of sales of which generate an aggregate Remittance Amount equal to the Claim Amount. Following the sale and
settlement of each tranche of Settlement Shares issued by the Company to TARPON, TARPON shall cause to be disbursed the Remittance
Amount associated with such tranche to Sellers in accordance with the Claim Purchase Agreements. To the extent that the Company
issues Settlement Shares in excess of that necessary to satisfy the aggregate Claim Amount, TARPON shall return any excess Settlement
Shares to Company for retirement to treasury stock. The parties reasonably estimate that the fair market value of the Settlement
Shares and all other amounts received or to be received by TARPON is equal to approximately $1,554,250.00. The parties acknowledge
that the number of Settlement Shares to be issued pursuant to this Agreement is indeterminable as of the date of its execution,
and could well exceed the current existing number of shares outstanding as of the date of its execution.

 

d.               Notwithstanding anything to the contrary contained herein, the Settlement Shares beneficially owned by TARPON at any given
time shall not exceed the number of such shares that, when aggregated with all other shares of Company then beneficially owned
by TARPON, or deemed beneficially owned by TARPON, would result in TARPON owning more than 9.99% of all of such Common Stock as
would be outstanding on such date, as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated
thereunder. In compliance therewith, the Company agrees to deliver the Initial Issuance and any additional issuances in one or
more tranches.

 

4.              
Necessary Action. At all times after the execution of this Agreement and entry of the Order by the Court, each party
hereto agrees to take or cause to be taken all such necessary action including, without limitation, the execution and delivery
of such further instruments and documents, as may be reasonably requested by any party for such purposes or otherwise necessary
to effect and complete the transactions contemplated hereby.

 

5.              
Releases. Upon receipt of all of the Settlement Shares required to be delivered hereby, in consideration of the terms
and conditions of this Agreement, and except for the obligations, representations and covenants arising or made hereunder or a
breach hereof, the parties hereby release, acquit and forever discharge the other and each, every and all of their current and
past officers, directors, shareholders, affiliated corporations, subsidiaries, agents, employees, representatives, attorneys, predecessors,
successors and assigns (the “Released Parties”), of and from any and all claims, damages, cause of action, suits and
costs, of whatever nature, character or description, whether known or unknown, anticipated or unanticipated, which the parties
may now have or may hereafter have or claim to have against each other with respect to the Claims. Nothing contained herein shall
be deemed to negate or affect TARPON’s right and title to any securities heretofore or hereafter issued to it by Company
or any subsidiary of Company.

 

    	4

    	 

    

 

6.              
Representations. Company hereby represents, warrants and covenants to TARPON as follows:

 

a.               There are 6,490,000,000 shares of Common Stock of the Company authorized, of which 219,224,987 Shares of Common Stock are
issued and outstanding as of April 3, 2014;

 

b.              The shares of Common Stock to be issued pursuant to the Order are duly authorized, and when issued will be duly and validly
issued, fully paid and non-assessable, free and clear of all liens, encumbrances and preemptive and similar rights to subscribe
for or purchase securities;

 

c.               Upon Court approval of this Stipulation and entry of the Order, the shares will be exempt from registration under the Securities
Act and issuable without any restrictive legend;

 

d.              The Company has reserved from its duly authorized capital stock a number of shares of Common Stock at least equal to the
number of shares that could be issued pursuant to the terms of the Order;

 

e.               If at any time it appears reasonably likely that there may be insufficient authorized shares to fully comply with the Order,
Company shall promptly increase its authorized shares to ensure its ability to timely comply with the Order;

 

f.                The execution of this Agreement and performance of the Order by Company and TARPON will not (1) conflict with, violate or
cause a breach or default under any agreements between Company and any creditor (or any affiliate thereof) related to the account
receivables comprising the Claims, or (2) require any waiver, consent, or other action of the Company or any creditor, or their
respective affiliates, that has not already been obtained;

 

 

 

 

 

    	5

    	 

    

 

g.               Without limitation, the Company hereby waives any provision in any agreement related to the account receivables comprising
the Claims requiring payments to be applied in a certain order, manner, or fashion, or providing for exclusive jurisdiction in
any court other than this Court;

 

h.              The
Company has all necessary power and authority to execute, deliver and perform all of its obligations under this Agreement;

 

i.                The
execution, delivery and performance of this Agreement by Company has been duly authorized by all requisite action on the part
of Company (including a majority of its independent directors), and this Agreement has been duly executed and delivered by Company;

 

j.                Company
did not enter into the transaction giving rise to the Claims in contemplation of any sale or distribution of Company’s common
stock or other securities;

 

k.               There has been no modification, compromise, forbearance, or waiver entered into or given by the Company with respect to
the Claims. There is no action based on the Claims by the Company that is currently pending in any court or other legal venue,
and no judgments based upon the Claims have been previously entered in any legal proceeding;

 

l.                There
are no taxes due, payable or withholdable as an incident of Seller’s provision of goods and services, and no taxes will
be due, payable or withholdable as a result of settlement of the Claims;

 

m.              [reserved]

 

n.              To
the best of the Company’s knowledge, no Seller is, directly or indirectly, utilizing any of the proceeds received from TARPON
for selling the Claims to provide any consideration to or invest in any manner in the Company or any affiliate of the Company;

 

o.              Company
has not received any notice (oral or written) from the SEC or Principal Market regarding a halt, limitation or suspension of trading
in the Common Stock; and

 

p.              No
Seller will, directly or indirectly, receive any consideration from or be compensated in any manner by, the Company, or any affiliate
of the Company, in exchange for or in consideration of selling the Claims.

 

    	6

    	 

    

 

q.              Company
acknowledges that TARPON or its affiliates may from time to time, hold outstanding securities of the Company, including securities
which may be convertible in shares of the Company’s common stock at a floating conversion rate tied to the current market
price for the stock. The number of shares of Common Stock issuable pursuant to this Agreement may increase substantially in certain
circumstances, including, but not necessarily limited to the circumstance wherein the trading price of the Common Stock declines
during the Valuation Period. The Company’s executive officers and directors have studied and fully understand the nature
of the transaction contemplated by this Agreement and recognize that they have a potential dilutive effect. The board of directors
of the Company has concluded in its good faith business judgment that such transaction is in the best interests of the Company.
The Company specifically acknowledges that its obligation to issue the Settlement Shares is binding upon the Company and enforceable
regardless of the dilution such issuance may have on the ownership interests of other shareholders of the Company.

 

TARPON hereby represents, warrants and covenants to
Company as follows:

 

a.               It is the owner of the Claims;

 

b.               It
is a limited liability company duly filed and in good standing under the laws of Connecticut, and

 

c.               The
execution, delivery and performance of this Stipulation by TARPON has been duly authorized by all requisite action on the part
of TARPON, and this Stipulation has been duly executed and delivered by TARPON.

 

7.              
Continuing Jurisdiction. In order to enable the Court to grant specific enforcement or other equitable relief in
connection with this Agreement, (a) the parties consent to the continuing jurisdiction of the Court for purposes of enforcing this
Agreement, and (b) each party to this Agreement expressly waives any contention that there is an adequate remedy at law or any
like doctrine that might otherwise preclude injunctive relief to enforce this Agreement.

 

8.              
Conditions Precedent/ Default . 

 

a.               If
Company shall default in promptly delivering the Settlement Shares to TARPON in the form and mode of delivery as required by Section
3 herein;

 

b.               If the Order shall not have been entered by the Court on or prior to May 31, 2014;

 

 

    	7

    	 

    

c.               If the Company shall fail to comply with the Covenants set forth in Paragraph 14 hereof;

 

d.              If
Bankruptcy, dissolution, receivership, reorganization, insolvency or liquidation proceedings or other proceedings for relief under
any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company; or if the trading of the
Common Stock shall have been halted, limited, or suspended by the SEC or on the Principal Market; or trading in securities generally
on the Principal Market shall have been suspended or limited; or minimum prices shall been established for securities traded on
the Principal Market; or there shall have been any material adverse change (i) in the Company’s finances or operations,
or (ii) in the financial markets such that, in the reasonable judgment of the TARPON, makes it impracticable or inadvisable to
trade the Settlement Shares; and such suspension, limitation or other action is not cured within ten (10) trading days; then,
at the sole option of Tarpon, the Company may be deemed to be in default of the Agreement and Order, and this Agreement shall
become null and void.

 

9.               Information.
Company and TARPON each represent that prior to the execution of this Agreement, they have fully informed themselves of its
terms, contents, conditions and effects, and that no promise or representation of any kind has been made to them except as expressly
stated in this Agreement.

 

10.             Ownership
and Authority. Company and TARPON represent and warrant that they have not sold, assigned, transferred, conveyed or otherwise
disposed of any or all of any claim, demand, right, or cause of action, relating to any matter which is covered by this Agreement,
that each is the sole owner of such claim, demand, right or cause of action, and each has the power and authority and has been
duly authorized to enter into and perform this Agreement and that this Agreement is the binding obligation of each, enforceable
in accordance with its terms.

 

11.            No
Admission. This Agreement is contractual and it has been entered into in order to compromise disputed claims and to avoid
the uncertainty and expense of the litigation. This Agreement and each of its provisions in any orders of the Court relating to
it shall not be offered or received in evidence in any action, proceeding or otherwise used as an admission or concession as to
the merits of the Action or the liability of any nature on the part of any of the parties hereto except to enforce its terms.

 

    	8

    	 

    

 

12.             Binding Nature. This Agreement shall be binding on all parties executing this Agreement and their respective successors,
assigns and heirs.

 

13.             Authority
to Bind. Each party to this Agreement represents and warrants that the execution, delivery and performance of this Agreement
and the consummation of the transactions provided in this Agreement have been duly authorized by all necessary action of the respective
entity and that the person executing this Agreement on its behalf has the full capacity to bind that entity. Each party further
represents and warrants that it has been represented by independent counsel of its choice in connection with the negotiation and
execution of this Agreement, and that counsel has reviewed this Agreement.

 

14.             Covenants.

 

a.                For
so long as TARPON or any of its affiliates holds any Settlement Shares, neither Company nor any of its affiliates shall, without
the prior written consent of TARPON (which may not be unreasonably withheld), vote any shares of Common Stock owned or controlled
by it (unless voting in favor of a proposal approved by a majority of Company’s Board of Directors), or solicit any proxies
or seek to advise or influence any person with respect to any voting securities of Company; in favor of (1) causing a class of
securities of Defendant to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer
quotation system of a registered national securities association, causing a class of equity securities of Company to become eligible
for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended, taking any action
which would impede the purposes and objects of this Settlement Agreement.

 

b.              Upon
the signing of the Settlement Order by the Court, the Company shall file such SEC filings as may be required in respect of this
Settlement Agreement.

 

15.               Indemnification. Company shall indemnify, defend and hold TARPON and its affiliates harmless with respect to all
obligations of Company arising from or incident or related to this Agreement, including, without limitation, any claim or action
brought derivatively or directly by the Seller or shareholders of Company.

 

 

    	9

    	 

    

 

16.            
Legal Effect. The parties to this Agreement represent that each of them has been advised as to the terms and legal
effect of this Agreement and the Order provided for herein, and that the settlement and compromise stated herein is final and conclusive
forthwith, subject to the conditions stated herein, and each attorney represents that his or her client has freely consented to
and authorized this Agreement after have been so advised.

 

17.           
Waiver of Defense. Each party hereto waives a statement of decision, and the right to appeal from the Order after
its entry. Company further waives any defense based on the rule against splitting causes of action. The prevailing party in any
motion to enforce the Order shall be awarded its reasonably attorney fees and expenses in connection with such motion. Except as
expressly set forth herein, each party shall bear its own attorneys’ fees, expenses and costs.

 

18.           
Signatures. This Agreement may be signed in counterparts and the Agreement, together with its counterpart signature
pages, shall be deemed valid and binding on each party when duly executed by all parties. This Agreement may be amended only by
an instrument in writing signed by the party to be charged with enforcement thereof. This Agreement supersedes all prior agreements
and understandings among the parties hereto with respect to the subject matter hereof.

 

19.           
Choice of Law, Etc. Notwithstanding the place where this Agreement may be executed by either of the parties, or any
other factor, all terms and provisions hereof shall be governed by and construed in accordance with the laws of the State of Florida,
applicable to agreements made and to be fully performed in that State and without regard to the principles of conflicts of laws
thereof. Any action brought to enforce, or otherwise arising out of this Agreement shall be brought only in the Court (as defined
in this Agreement).

 

 

    	10

    	 

    

 

20.          
Exclusivity. For a period of thirty (30) days from the date of the execution of this Agreement, (a) Company and its
representatives shall not directly or indirectly discuss, negotiate or consider any proposal, plan or offer from any other party
relating to any liabilities, or any financial transaction having an effect or result similar to the transactions contemplated hereby,
and (b) TARPON shall have the exclusive right to negotiate and execute definitive documentation embodying the terms set forth herein
and other mutually acceptable terms.

 

21.          
Inconsistency. In the event of any inconsistency between the terms of this Agreement and any other document executed
in connection herewith, the terms of this Agreement shall control to the extent necessary to resolve such inconsistency.

 

22.          
NOTICES. Any
notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively
given on the earliest of

 

(a)            
the date delivered, if delivered by personal delivery as against written receipt therefor or by confirmed facsimile transmission,

 

(b)            
the seventh business day after deposit, postage prepaid, in the United States Postal Service by registered or certified
mail, or

 

(c)             
the second business day after mailing by domestic or international express courier, with delivery costs and fees prepaid,

 

in each case, addressed to each of the
other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by ten (10)
days’ advance written notice similarly given to each of the other parties hereto):

 

    	11

    	 

    

 

Company:

 

Worthington Energy, Inc.

Attn: Chief Executive Officer

Tel No.: 775-450-1515

E-mail: chasv@paxenergyinc.com

 

and the copy should go to:

 

Tarpon Bay Partners LLC

 

17210 Germano Court

Naples, FL 34110

Telephone No.: 203-431-8300

 

 

and

 

Krieger & Prager LLP

39 Broadway

Suite 920

New York, NY 10006

Attn: Samuel M. Krieger, Esq.

Telephone No.: (212) 363-2900

Telecopier No.: (212) 363-2999

E-mail : sk@kplawfirm.com

 

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the parties have duly
executed this Settlement Agreement and Stipulation as of the date first indicated above.

 

	 	TARPON BAY PARTNERS LLC	 
	 	
         

         
	 
	 	By:	/s/ signature	 
	 	Name:	illegible	 
	 	Title:	Manager	 
	 	 	 
	 	
         

         
	
         

         

	 	WORTHINGTON ENERGY, INC.	 
	 	
         

         

         
	 
	 	By:	/s/ Charles Volk	 
	 	Name:	Charles Volk	 
	 	Title:	Chief Executive Officer	 

 

 

 

 

 

 

 

    	13

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