Summary of Oral Working Capital Loan Agreement between Lance T. Shaner and PennTex Resources Illinois, Inc.
Lance T. Shaner loaned a total of $1,820,000 to PennTex Resources Illinois, Inc., a company in which he was the sole stockholder, in two separate transactions. The loans were not documented by promissory notes, were non-interest-bearing, and were payable on demand. PennTex Illinois repaid $1,000,000 to Mr. Shaner, and the remaining $820,000 was later converted into an equity contribution. This agreement outlines the terms and subsequent actions related to these oral loan arrangements.
Exhibit 10.14
On December 27, 2006, Lance T. Shaner, an individual with an address at 1965 Waddle Road, State College, Pennsylvania 16803, loaned $1,000,000 to PennTex Resources Illinois, Inc., a Delaware corporation with an address at 1975 Waddle Road, State College, Pennsylvania 16803 (“PennTex Illinois”). On May 2, 2007, Lance T. Shaner loaned an additional $820,000 to PennTex Illinois. At the time of the making of each loan, Mr. Shaner was the sole stockholder of PennTex Illinois. Neither loan was evidenced by a promissory note or other instrument. Both loans were non-interest-bearing and payable upon the demand of Mr. Shaner. On January 25, 2007, PennTex Illinois paid Mr. Shaner $1,000,000 in partial repayment of the loan. On March 30, 2007, the remaining outstanding principal balance of the loan of $820,000 was converted to an equity capital contribution by Mr. Shaner into PennTex Illinois.
