On December 16, 2015, wholly-owned subsidiaries of the Legend Oil and Gas, Ltd. entered into a Business Loan Agreement with State Bank and Trust Company, Alpharetta, GA. Pursuant to the Agreement, the Borrowers may draw down up to approximately $272,000 from time to time. Any amounts borrowed will bear interest at the Prime Rate of interest plus 0.750% (currently 4%) per annum.

Interest is payable monthly. The loan is secured by rolling stock and accounts receivable owned by the Borrowers. Any principal borrowed under the Agreement is due in full, plus any accrued and unpaid interest, on December 16, 2016.