Exterra Energy, Inc (fka EENIQ)

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18-Sep-2009

Entry into a Material Definitive Agreement


Item 1.01 Entry Into a Material Definitive Agreement

Secured Loans from Happy State Bank

On September 14, 2009 (the Closing Date"), the Registrant, as borrower, closed a Term Loan and Revolving Loan pursuant to the terms and conditions of a Loan Agreement, dated as of September 14, 2009 (the "Loan Agreement"), by and between the Registrant, Robert Royal and Todd R. Royal (Robert Royal and Todd R. Royal, collectively, the "Guarantors"), and Happy State Bank a Texas banking corporation (the "Lender"). Pursuant to the terms and conditions of the Loan Agreement and other related documents (all of which are collectively referred to herein as the "Loan Documents"), the Registrant agreed to borrow and Lender agreed to lend the Principal Amount of Ten Million Dollars ($10,000,000) under the terms and conditions described in the Loan Documents.

Pursuant to the terms of the Loan Documents, the Guarantors, the Registrant's Chairman and the Registrant's President and a member of the board of directors, agreed to execute and provide guarantees for the repayment of the Principal Amount of the Loan and for the completion of the other commitments of the Registrant under the terms of the Loan Documents.

The foregoing description of the Loan Documents, and the transactions contemplated thereby, is a summary of terms, is not intended to be complete and is qualified in its entirety by the complete text of those agreements, copies of which are attached hereto as Exhibit 10.10, attached to this Report.

The proceeds of the Loan will be utilized to purchase additional revenue generating assets and for normal and customary operating expenses as set forth in the Loan Documents.

http://biz.yahoo.com/e/090918/eeni.ob8-k.html

http://www.sec.gov/Archives/edgar/data/1367387/000105050209000230/exterra8k9-14.txt