Document:

exv10w17

Exhibit 10.17

Letter Agreement

This
Letter Agreement is made and entered by and between Electronic Day Trader, Inc. (“EDT”),
3665 Merrick Road, Seaford, New York, 11783, Richard Buccellato (“Buccellato”) whose address is 9
Hidden Hollow, Holmdel, New Jersey, 07733 and Michael Galvis (“Galvis”), whose address is 12215
Park Forest Drive, Dallas, Texas, 75230, collectively referred to herein as the “Parties”, for the
following purposes:

RECITALS

Whereas, Galvis and Electronic Day Trader, Inc., by and through Richard Buccellato as
Attorney-in-Fact pursuant to that certain Power of Attorney with the Effective Date of March 21,
2006, are 50/50 co-owners and members of NYTEX Petroleum, LLC (“NYTEX” or the “Company”) holding
membership certificates of 500 units each out of 1000 units total.

	Whereas, Galvis and Buccellato initiated NYTEX with various verbal terms and understandings.

	Whereas, Galvis and Buccellato have clarified, modified, added to and memorialized such terms and
understandings via that certain Letter Agreement dated September 11, 2007.

	Whereas, Galvis, Buccellato, and EDST all wish to clarify, modify, add to and memorialize such
clarified, modified and new terms and understandings as an amendment
to the September 11, 2007
Letter Agreement which shall amend and supersede the terms thereof.

TERMS

	 	 	Now therefore, the Parties agree to the following terms, conditions, modifications and amendments:

	 	1.	 	Operational Plan. NYTEX was created to build oil and gas and related
assets and realize cash profits for the LLC members by 1) generating in-house,
developing with, and purchasing from third parties oil and gas drilling prospects,
leasehold interests, producing properties, equities in oil and gas related companies
and mid-stream projects, placing added value and syndicating and/or selling such
value-added assets and projects to investors, oil and gas investment companies, and
other interested, suitable parties, and 2) providing energy services for retail
investment funds.
	 
	 	2.	 	Line of Credit. The following terms shall govern the Operating Line of
Credit provided by Buccellato for the benefit of the Company:

	 	a.	 	The Buccellato Operating Line of Credit shall terminate upon
the execution of this Letter Agreement by all Parties hereto.
	 
	 	b.	 	The Parties hereto agree and acknowledge that NYTEX shall be
responsible for and shall pay in full the outstanding balance of Two Hundred
Ninety Five Thousand Dollars and no/100s ($295,000.00) and all accrued monthly
interest on the outstanding balance of the Line of Credit; said principal and
interest

 

 

	 	 	 	shall be paid in full by NYTEX within ninety (90) days of the Effective Date of
this Agreement or upon the completion of NYTEX Energy Holdings, Inc $4.4 million
funding.
	 
	 	c.	 	Until paid in full as provided herein, the Line of Credit shall continue to
be secured by the assets of NYTEX and be personally guaranteed by Buccellato and
Galvis in such a manner that each party personally guarantees Fifty percent (50%) of
the amount Line of Credit utilized and owed by the Company, but shall not be
personally liable for the other half. On execution of this document, each party
agrees to his or its 50% personal guarantee of the Line of Credit contained herein.

	 	3.	 	Plan of Merger. The parties hereto have agreed to explore a Plan of Merger, a copy of which
is in the official corporate books of the Company located at the Dallas, Texas offices of
NYTEX, whereby NYTEX shall a) acquire Clearsight Holdings, Inc., and b) the name of Clearsight
Holdings, Inc. shall be changed to NYTEX Energy Holdings, Inc., and c) NYTEX Petroleum, LLC
shall merge into NYTEX Energy Holdings, Inc. via a reverse merger. Pursuant to the Plan of
Merger, both Galvis and EDT will surrender their NYTEX membership certificates back to NYTEX
treasury; said surrender to be made concurrently with the execution of this Agreement.
Further, pursuant to the proposed Plan of Merger, EDT and Buccellato
by surrendering their shares to the treasury, have no further obligation in the managing of past, current and future
assets and hereby officially resign in any management capacity. For and in consideration of
Galvis’, EDT’s, and Buccellato’s surrender of the current Membership Certificates evidencing
ownership of NYTEX Petroleum, LLC, the following persons shall be issued shares of SEC Rule
144 common stock of NYTEX Energy Holdings, Inc. in the following amounts listed herein with
the corresponding percentages representative of the issued and outstanding common
stock, excluding warrants, at the completion of the merger, after which all will be subject to
dilution:
	 
	 	 	 	Michael Galvis: 20,000,000 shares — 49.34%

Richard Buccellato: 3,952,357 shares — 9.75% 
Stan Zolek:
1,013,425 shares — 2.5% 
Robert Pellegrino: 1,013,425
shares — 2.5%
 Bill Brehmer: 2,026,850 shares — 5%

Georgiana Hanes: 2,026,850 shares — 5%
	 
	 	 	 	At such time as EDT surrenders its Membership Certificate to NYTEX treasury, EDT shall also
resign as Manager of NYTEX. EDT or Buccellato have no affiliation or input into NYTEX Energy
Holdings Business Plan and future plans for the initial public company or offering.

	 	4.	 	Option to Reacquire Interest in NYTEX Petroleum LLC. Although it is anticipated
that the NYTEX Energy Holdings, Inc. Business plan and Plan of Merger is will be fulfilled and
that NYTEX Petroleum, LLC will fund the $4.4 million NYTEX Energy

 

 

	 	 	Holdings, Inc. Business Plan and that NYTEX Energy Holdings, Inc. shall become a publicly
traded entity, the parties hereto agree that in the event that NYTEX
Petroleum, LLC fails to fund
the $4.4 million NYTEX Energy Holdings, Inc. Business Plan within one hundred and eighty (180) days
from the Effective Date hereof, then EDT and Galvis shall each have the right and option (the
“NYTEX Option”), but not the requirement or obligation, to acquire from NYTEX Petroleum, LLC the
50% Membership Interests each surrendered to NYTEX treasury pursuant to this Agreement; further,
upon EDT’s exercise of this NYTEX Option, EDT shall be appointed and reinstated as Manager of NYTEX
effective as of the date EDT exercises the NYTEX Option. The NYTEX Option shall terminate upon the
earlier of: a) the funding of the $4.4 million NYTEX Energy Holdings, Inc. Business Plan and
performance of the Business Plan, including payment of the $295,000 Line of Credit pursuant to
paragraph 2 of this Agreement or b) Six (6) Months from the Effective Date hereof.
	 
	5.	 	Option to Acquire Interest in NYTEX Energy Holdings, Inc. Although it is anticipated
that the NYTEX Energy Holdings, Inc. Business plan and Plan of Merger is fulfilled and that NYTEX
Energy Holdings, Inc. shall become a publicly traded entity, the parties hereto agree that in the
event NYTEX Energy Holdings, Inc. fails to become a publicly traded entity within one (1) year of
the Effective Date hereof, then EDT shall have the right and option (the “NYTEX Inc. Option”), but
not the requirement or obligation, to acquire from Michael Galvis so much of the issued and
outstanding common stock of NYTEX Energy Holdings, Inc. so that the NYTEX Energy Holdings, Inc.
stock ownership percentage of EDT and Buccellato combined shall equal the stock ownership
percentage of Michael Galvis. The Option shall terminate upon the earlier of: a) NYTEX Energy
Holdings, Inc. becoming a publicly traded entity, as herein defined or b) Twelve (12) Months from
the Effective Date hereof. EDT and Buccellato have the right to extend the 12 month NYTEX Inc.
option Further, prior to the termination of the Option, Galvis agrees not to pledge, encumber, or
otherwise burden or transfer any stock issued to him by NYTEX Energy Holdings, Inc. For the
purposes of this Agreement, a “publicly traded entity” means a company which has issued securities
through an offering and which are traded on the open market, such market being a public exchange
located in the United States and regulated by the Securities & Exchange Commission
	 
	6.	 	Distributions. The Parties hereto agree that current accounts receivable and revenue of
NYTEX Petroleum, LLC received or derived from Oil2 Holdings, Inc. shall be distributed as received
to the Parties in their respective 50/50 interests and shall not be encompassed or affected by the
Plan of Merger. (Michael Galvis 50% and EDT 50%) The total anticipated amount of Oil2 revenue to be
approximately One Million Dollars ($1,000,000.00).
	 
	7.	 	The terms and provisions hereof shall be binding upon and shall inure to the benefit of
successors and assigns. The Parties hereto agree to place this Letter Agreement

 

 

	 	 	into the corporate records of the Company and agree to be bound by same as if this Agreement
was part of the Regulations of the Company.
	 
	8.	 	Unless specifically addressed and amended herein, the terms of the September 11, 2007 Letter
Agreement shall remain in force and effect.
	 
	9.	 	This Agreement may be executed in counterparts, which collectively shall be considered a
single document.

EXECUTED AND EFFECTIVE on this 25th day of August, 2008.

	 	 	 
	/s/ Michael Galvis
 

Michael Galvis

	 	 
	Individually and as Manager of NYTEX Petroleum, LLC
	 
	 	 
	/s/ Stan Zolek
 

Electronic Day Trader, Inc.

	 	 
	By Stan Zolek
	 	 
	Its: President
	 	 
	Individually and as Manager of NYTEX Petroleum, LLC
	 
	 	 
	/s/ Richard Buccellato
 

Richard Buccellato

	 	 
	Individually and as Attorney in Fact for Electronic Day Trader, Inc.exv10w18

Exhibit 10.18

PARTICIPATION AGREEMENT

THIS AGREEMENT made and entered into this 10th day of September, 2008, by and between
Davis Operating Company, whose address is 2800 Mid-Continent Tower, Tulsa, Oklahoma 74103
(hereinafter called “DAVIS”) and NYTEX Petroleum, LLC (hereinafter called “Participant”) as to
Participant’s participation in the Lakeview Area of Mutual Interest Prospects located in Pittsburg
and Haskell Counties, Oklahoma.

RECITALS

DAVIS holds operating working interest ownership in certain oil, gas, and mineral leases and the
leasehold estates created thereby (the “Leases”), covering lands located in Pittsburg and Haskell
Counties, Oklahoma and within the Lakeview Area of Mutual Interest, hereinafter referred to as the
“Contract Area”; the Prospects and Lakeview Area of Mutual Interest all described more particularly
in Exhibit “A” attached hereto and made a part hereof for all purposes.

DAVIS is the Operator (hereinafter sometimes referred to as “Operator”) of the Contract Area
pursuant to the Joint Operating Agreement attached hereto as Exhibit “B”.

Participant desires to acquire and DAVIS desires to sell a portion of DAVIS’ working interest in
all of the Prospects and to enter into an agreement for the exploration and development of the
Contract Area, hereinafter referred to as the “Agreement”.

AGREEMENT

NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein
contained, the parties hereto agree as follows:

I

ACREAGE PURCHASE

     1.1 Participant shall pay DAVIS, as a prospect entry fee, the sum of $60.00 per
net leasehold acre to earn a 20.0% undivided gross Working Interest in the acreage making
up each Prospect.

     1.2 All leasehold acreage shall be limited from the surface to the base of the Hartshorne
formation.

     1.3 The various Leases making up each of the Prospects’ acreage are subject to royalty and
overriding royalty interests, resulting in Net Revenue Interests for each of the Prospects’ leases
as designated in Exhibit A attached hereto. Operating expenses for each well in each of the
Contract Areas in which Participant holds a working interest shall be proportionately charged to
Participant on the basis of One Hundred Percent (100%) of the Working Interest pays for One Hundred
Percent (100%) of the expenses to operate the well.

II

INITIAL TEST WELLS

The Operator has drilled but not yet completed eight (8) Initial Test Wells on the eight
(8) Prospects listed in Exhibit A with due diligence and in a workmanlike manner to a depth
sufficient to adequately test the geological horizon(s) projected to contain hydrocarbons.

Participation
Agreement —  Page 1

 

 

III

COSTS OF INITIAL ACREAGE, DRILLING, COMPLETING AND PLACING INTO

PRODUCTION THE INITIAL TEST WELL ON EACH PROSPECT

     3.1 Participant shall participate in and to the drilling and completion of the eight (8)
Initial Test Wells on an actual cost basis. DAVIS shall provide Participant with an Authority for
Expenditure (“AFE”) for each of the eight (8) Initial Test Wells representing both drilling and
completion cost estimates along with an invoice to Participant for Participant’s 20% working
interest in such wells.

     3.2 Each of the eight (8) Initial Prospect Wells will occupy a quarter section, equating to
160 acres. In the event any subsequent wells are drilled within the same quarter section
containing an Initial Prospect Well, Participant will have the right to participate in such
subsequent well for its 20% working interest on an actual cost basis, with no additional acreage
costs.

     3.3 The Cost to Drill, Test and Complete the Initial Prospect Wells are estimates. In the
event the actual costs are more or less than estimated costs, Operator shall deliver Participant an
accounting of the actual costs and provide Participant with either a 1) credit or refund if the
actual costs are lower than the estimated costs, or 2) an invoice for the additional costs as
applicable.

IV

SUBSEQUENT PROSPECTS

     4.1 Participant shall have the right to participate for its 20% working interest in any
Subsequent Prospect Wells proposed to be drilled in the Contract Area. Participant shall pay a
prospect entry fee for each Subsequent Prospect on the same terms as the Initial Prospect Wells as
described in Item 1.1 above. The costs for drilling and completion of Subsequent Prospect Wells
will be on an actual cost basis.

     4.2 DAVIS shall provide Participant written notice of a proposed Subsequent Prospect
Well along with the associated net revenue interest in the leasehold acreage and Participant’s
proportionate costs for the prospect entry fee, drilling and completion of such well. The
Participant shall have three (3) business days from receipt of such notice to provide DAVIS with
its election to participate or not participate in the proposed Subsequent Prospect Well.

V

INTEREST EARNED

     Upon completion of the Initial Prospect Wells, and each Subsequent Prospect Well, DAVIS
shall assign to PARTICIPANT, without warranty of title except by, through or under assignor, an
assignment of an undivided working interest (and the appropriate undivided net revenue interest
equaling net revenue interest applicable to the subject Prospect leases as indicated in Exhibit A
for the Initial Prospects or in the notice of Subsequent Prospect Wells delivered by DAVIS
pursuant to Item 4.2 above) in the (a) Prospect Lease(s), equal to the total amount of working
interest actually acquired and paid for by PARTICIPANT from DAVIS, (b) the Prospect Well and all
oil, gas, and related hydrocarbons produced, saved, and marketed therefrom, (c) all other personal
property and equipment located on

Participation Agreement — Page 2

 

 

the Leases, and (d) all appurtenances thereto. Such assignment shall be subject to all the
terms and conditions of this Agreement and any other agreements relating to the Contract Area and
existing as of the date of this Agreement. Upon the request of Participant, DAVIS shall furnish to
Participant copies of the Leases and all title data and title opinions relating to the Leases in
the possession of DAVIS.

VI

OPERATING AGREEMENT

     All joint operations in each of the Prospects’ Contract Areas shall be conducted in
accordance with an A.A.P.L. Form 610-1989 Model Form Operating Agreement to be signed between
Participant and DAVIS, attached hereto as Exhibit B. In the event of a conflict between the terms
and conditions of the Operating Agreement and this Participation Agreement, the terms and
conditions of this Agreement shall control.

VII

NON-COMPETE

     Participant acknowledges that all leasing within the Contract Area shall occur under
the supervision of DAVIS. Participant shall not pursue the acquisition of any oil and gas leases
or mineral rights (whether or not leased), directly or indirectly, within the Contract Area for
the term of this Participation Agreement without first notifying DAVIS and obtaining written
confirmation from DAVIS that such acquisition will not conflict with any current leasing
activities. Any acquisition of oil and gas leases or mineral rights within the Contract Area by
Participant without written consent from DAVIS during the term of this Participation Agreement
shall be a material breach of this Participation Agreement.

VIII

ENTIRE AGREEMENT

     This Agreement constitutes the entire agreement between the parties and no waiver,
representation, modification or agreement, oral or otherwise, shall affect the subject matter
hereof unless and until such waiver, representation or agreement is reduced in writing and
executed by an authorized representative of the parties.

IX

RELATIONSHIP OF THE PARTIES

     Except as otherwise provided, the liabilities of the Parties hereto shall be several
and not joint or collective, and both Parties shall be responsible only for its share of the costs
and liabilities incurred as provided hereunder. It is not the purpose or intention of this
Agreement to create any partnership, mining partnership, or association, and neither this
Agreement nor the operations hereunder shall be construed or considered as creating any such
relationship.

X

TERM

     Subject to the other provisions of this Agreement, the same shall remain in force for
the life of the oil and gas leases covering the jointly owned leased premises and any extensions
or renewals thereof and new leases covering any part of a Contract Area within six months of
expiration of the lease, whether by production or otherwise.

Participation Agreement — Page 3

 

 

XI

NOTICES AND PAYMENTS

All correspondence, notices and payments to DAVIS shall be delivered in person or by
first-class mail as follows:

Davis Operating Company

2800 Mid-Continent Tower

Tulsa, Oklahoma 74103

XII

GENERAL

     12.1 If any provision of this Agreement shall be found void, voidable or unenforceable,
the remaining provisions shall nevertheless remain in force.

     12.2 This Agreement shall be deemed for all purposes to have been made and entered into in
Pittsburg County, wherein it is expressly made performable and enforceable by any court of
competent jurisdiction in accordance with the laws of the State of Oklahoma, which shall govern and
control the construction and application of the terms hereof.

     12.3 Participant, to the extent that he/she is current on all payment obligations under this
Participation Agreement and has not violated any of the terms in Item VII “Non-Compete” above,
shall have and retain the right to participate in any and all future drilling operations in the
Contract Area. Absent any written agreement otherwise, such right shall be limited to
participating in the referenced future drilling operations at the same participation percentage as
acquired pursuant to the terms of this Participation Agreement.

XIII

PARTICIPANT ACKNOWLEDGEMENT

     13.1 With respect to the interest acquired by Participant hereunder:

       A. Participant understands that the interest described herein has not been registered
pursuant to the Securities Act of 1933, as amended, nor the securities laws of any state.
The interest has not been approved or disapproved by the Securities and Exchange Commission
nor by the securities commission of any state.

       B. Participant acknowledges that there is to be no advertisement or public solicitation
to sell the interest.

       C. Participant is purchasing the interest solely for its own account and not for resale
or distribution to others and understands that DAVIS and Operator have relied upon such
representation in agreeing to permit the participation in the prospect.

       E. PARTICIPATION IN OIL AND GAS EXPLORATION IS HAZARDOUS BY ITS NATURE AND
INVOLVES A HIGH DEGREE OF RISK AND PARTICIPANT ACKNOWLEDGES THAT THERE IS NO ASSURANCE THAT
HE WILL MAKE A PROFIT OR EVEN RECOVER HIS INVESTMENT.

Participation Agreement — Page 4

 

 

     F. Participant (i) represents that it has such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and risks of participation in the
prospects; (ii) has adequate means for providing for its current needs and personal contingencies;
(iii) has no need for liquidity in this investment; and (iv) can absorb the loss of such investment
in its entirety.

     EXECUTED as of the day and year first above written.

	 	 	 	 	 
	 	DAVIS Operating Company

 	 
	 	By:  	/s/ William Davis
 	 
	 	 	William Davis, President  	 
	 	 	 	 
	 
	 	NYTEX Petroleum, LLC

 	 
	 	By:  	/s/ Michael Galvis
 	 
	 	 	Michael Galvis, President 	 
	 	 	 	 
	 

Participation Agreement — Page 5

 

 

Exhibit “A”

to

Participation Agreement

 

 

Lakeview Contract Area

Pittsburg and Haskell Counties, Oklahoma

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Lease	 	Prospect
	Initial Prospect Wells	 	Location	 	NRI	 	Acreage
	Little No. 1-2

	 	Section 2-9N-17E
	 	 	79	%	 	 	160	 
	Brin No. 2-18

	 	Section 18-9N-18E
	 	 	75	%	 	 	160	 
	Monk No. 1-10

	 	Section 10-9N-17E
	 	 	79	%	 	 	160	 
	Tom No. 3-11

	 	Section 11-9N-17E
	 	 	78.795	%	 	 	160	 
	Tom No. 4-11

	 	Section 11-9N-17E
	 	 	78.795	%	 	 	160	 
	Giesla No. 1-3

	 	Section 3-9N-17E
	 	 	79	%	 	 	160	 
	Berry Patch No. 4-13

	 	Section 13-9N-17E
	 	 	79	%	 	 	160	 
	Lakeview No. 3-14

	 	Section 14-9N-17E
	 	 	79	%	 	 	160	 

Contract Area:

Exhibit A to Participation Agreement — Page 1

 

 

Exhibit “B”

to

NYTEX 2008-11 Diversified Exploration Fund Participation Agreement

JOINT OPERATING AGREEMENT

Exhibit B to Participation Agreement — Page 1

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