Attached files
Exhibit 10.2
Baron Energy, Inc.
392 W. Mill St.
New Braunfels, TX 78130
Ph/Fax (830) 608-0300
February 28, 2011
PWH Resources LP
1913 Gladewood Dr.
Midland, TX 79707
Re: Debt Settlement
On December 20, 2005, Esconde Resources LP ("Esconde") executed a promissory
note (the "Note') in the amount of $7,500 payable to PWH Resources LP
("Creditor"). The Note was payable on April 1, 2006, with interest at the rate
of 4.0% per annum.
As of February 28, 2011, the remaining principal amount plus accrued interest on
the Note is $4,748.
On April 13, 2009, Creditor loaned Esconde an additional $11,512. This was an
undocumented loan (the "Loan"). The imputed interest on the Loan is $865 for a
total amount due of $12,377. The Note and the Loan are hereinafter collectively
referred to as the Debt.
Effective February 22, 2010, Baron Energy, Inc. ("Debtor") became successor in
interest to Esconde. Creditor and Debtor agree to settle the Debt under the
following terms and conditions.
The Creditor and Debtor agree that the outstanding amount owed on the Debt is
$17,125. Both parties agree that the Creditor will settle the Debt for $16,260
which is equal to the Note balance of $4,748 plus the Loan principal balance of
$11,512. Both parties further agree that the Creditor will accept 232,288
restricted common shares of Debtor as payment in full of all outstanding
principal and interest on the Debt.
This agreement shall be binding upon the Creditor, Debtor, and their successors
and assignees.
Sincerely,
/s/ Lisa P. Hamilton
--------------------------------
Lisa P. Hamilton
Executive Vice President and CFO
Agreed:
PWH Resources LP Baron Energy, Inc.
by Heard Resources, Inc.,
its General Partner
Signed: Signed:
/s/ Paul W. Heard /s/ Ronnie L. Steinocher
-------------------------------- ------------------------------------
Paul W. Heard, Director Ronnie L. Steinocher, President
and CEO
Date: Date:
