Exhibit 10.1
Texhoma Energy, Inc.
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0000 Xxxx Xxx Xxxx Xxx 000, Xxxxxxx, Xxxxx 00000
Phone: 000-000-0000 Fax: 000-000-0000
PROMMISORY NOTE
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AND
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SECURITY AGREEMENT
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Between
POLARIS HOLDINGS, INC.
Suite 120, 0000 Xxxxxxxxxxxx Xxxxx
Xxxxxxx, XX 00000
and
TEXHOMA ENERGY, INC.
Suite 320, 0000 Xxxx Xxx Xxxx.
Xxxxxxx, Xxxxx 00000
Texhoma Energy, Inc (Texhoma) has requested a loan of US$ 250,000 (TWO HUNDRED
AND FIFTY THOUSAND UNITED STATES DOLLARS) (the "Loan-funds") from Polaris
Holdings, Inc. (Polaris).
Texhoma has an 11% Working Interest in the Clovelly prospect and has been
cash-called by ORX Resources, Inc (ORX), the operator of the property, for the
drilling of the Xxxxxx-XxXxxxxx No, 2 Well. Polaris has agreed to deposit the
Loan-funds directly with ORX as a payment towards the cash call on behalf of
Texhoma. Banking details have been provided to Polaris.
This letter is both a Corporate Guarantee from Texhoma that it will fully repay
the Loan-funds on or before August 10, 2006 with $100,000 partial payment by
June 15, 2006. The loan is carried at an interest of 12% P.A .
Texhoma will further commit following payments to Polaris until the loan is
repaid in full:
- 2/3 of net receipts from stock sales - less portion paid to Xxxxxxx
Xxxxx
- 1/3 of Texhoma's share of production income (both Kilrush and
Little White Lake properties)
For the provision of the Loan-funds Polaris is granted the Option to
participation in the Clovelly Prospect for a 3% Working Interest, i.e. Polaris
can elect to participate in the project after reviewing the electric logs of the
Xxxxxx-XxXxxxxx No. 2 Well at the target depth but before completion of the
well. If Polaris elects to participate, Texhoma will surrender 3/11th of its 11%
Working Interest in the Project and in return Polaris will reimburse Texhoma for
the drilling cost incurred by Texhoma for the 3% Working Interest from the
commencement of the drilling operations. The amount so determined will be
deducted from the repayment of the Loan-funds.
In the event that the Loan-funds are not repaid as per Agreement, Texhoma will
assign 100% of its cash flow from the Texaurus Partnership to Polaris or its
nominee until the loan is repaid in full.
EXECUTED by the Parties this 8th day of June, 2006.
TEXHOMA ENERGY, INC.
/s/ Xxx Xxxxxxx /s/ Xxxxx Xxxxxx
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Xxx Xxxxxxx Xxxxx X. Xxxxxx
President & CEO Secretary
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POLARIS HOLDINGS, INC.
/s/ Xxxxxx Xxxxxx /s/ Xxxxxx Xxxxxx
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Xxxxxx Xxxxxx Director/Secretary
President Xxxxxx Xxxxxx
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