TransCoastal Corporation has entered into a loan agreement and promissory note with Dalton Lott, an individual effective June 30, 2014. The principle of the note is $1,500,000 with 5.5% simple annual interest for a term of six years. The company will pay no interest or principal on the note until January 1, 2015.

The company will make interest only payments of $6,875 monthly, due on the first day of each month, beginning January 1, 2015 and each month thereafter until September 30, 2015. Beginning October 1, 2015 the company will begin to pay principal and interest on the note in 60 consecutive monthly payments of $28,651.74 each and due on the first of each month thereafter. The note can be prepaid at any time with no penalty.

The note is personally guaranteed by three directors and officers of the company, Stuart Hagler, David May and Wilbur Westmoreland.