Exhibit 10(r)
PROMISSORY NOTE - Fixed or Variable Rate - Commercial
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DEBTOR(S) NAME AND NOTE DATE OF MATURITY DATE PRINCIPAL
ADDRESS NUMBER NOTE 08/01/01 AMOUNT
1001 08/30/00 $350,000.00
The Beard Company
5600 N. May Ave.
Suite 320
Oklahoma City, OK
73112
CUSTOMER X NEW LOAN OFFICER
NUMBER RENEWAL OF LOAN(S) NUMBER JNH539
5664802
FIXED INTEREST RATE OF ____% PER ANNUM.
INTEREST PAYABLE: _____________________________________
X VARIABLE INTEREST RATE 0.500%
ABOVE Chase Manhattan Prime Rate
INITIAL RATE 10.000% INTEREST PAYABLE
_______________________________________
COLLATERAL CATEGORIES SOCIAL SECURITY NUMBER
73-0970298
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P PURPOSE
A T Accrued interest due and payable MONTHLY,
Y E beginning 09/30/00 and MONTHLY thereafter, Revolving Line of
M R with outstanding principal balance and Credit-Working
E M unpaid accrued interest due and payable Capital
N S on 08/01/01.
T
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FOR VALUE RECEIVED, the undersigned Debtor(s), jointly and
severally if more than one, agree to the terms of this Note and
promise to pay to the order of Lender named below at its place of
business as indicated herein or at such other place as may be
designated in writing by holder, the Principal Amount of this
Note together with interest until maturity at the per annum
interest rate or rates stated above. If the writing above
indicates that the per annum interest rate is to vary with
changes made from time to time in the base or prime rate of
Lender or other financial institution, each change in the rate
will become effective without notice to Debtor on the same day
such base or prime rate is changed, unless a different effective
date is specified above. The base or prime rate set forth above
is determined by the named Financial Institution in its sole
discretion primarily on a basis of its cost of funds, is not
necessarily the lowest or highest rate the named Financial
Institution is charging its customers, and is not necessarily a
published rate. In the event the named Financial Institution
fixing the base or prime rate ceases to exist or ceases to
announce such a rate, lender may specify a new Financial
Institution to fix such rate, in its sole discretion. Interest on
this Note is calculated on the actual number of days elapsed on a
basis of a 360 day year unless otherwise indicated herein. For
purposes of computing interest and determining the date principal
and interest payments are received, all payments made under this
Note will not be deemed to have been made until such payments are
received in collected funds.
PAYMENTS NOT MADE WHEN DUE. Any principal and/or interest amount
not pald when due shall bear interest at a rate six percent (6%)
per annum greater than the per annum interest rate prevailing on
this Note at the time the unpaid amount became due, but in no
event at a rate less than fifteen percent (15%) per annum. In
addition or in the alternative to the interest rate provided for
in this paragraph Lender may assess a charge of ten dollars ($10.00)
times the number of days late to cover cost of past due notices
and other expenses. In no event shall the interest rate and
related charges either before or after maturity be greater than
permitted by law.
ALL PARTIES PRINCIPALS. All parties liable for payment hereunder
shall each be regarded as a principal and each party agrees that
any party hereto with approval of holder and without notice to
other parties may from time to time renew this Note or consent to
one or more extensions or deferrals of Maturity Date for any term
or terms, and all parties shall be liable in same maimer as on
original note. All parties liable for payment hereunder waive
presentment, notice of dishonor and protest and consent to
partial payments, substitutions or release of collateral and to
addition or release of any party or guarantor.
ADVANCES AND PAYMENTS. It is agreed that the sum of all advances
under this Note may exceed the Principal Amount as shown above,
but the unpaid balance shall never exceed said Principal Amount.
Advances and payments on Note shall be recorded on a schedule
attached hereto or on the records of the Lender. Debtor appoints
the Lender as Debtor's attorney in fact, irrevocably, to record
advances and payments on the attached schedule or in the Lender's
records. Records shall be prima facie evidence of such advances,
payments and unpaid principal balance provided, however, that the
failure to make a notation on the attached schedule or Lender's
records with respect to any advance or payment shall not limit
the obligation of the Debtor hereunder. Subsequent advances and
the procedures described herein shall not be construed or
interpreted as granting a continuing line of credit for Principal
Amount. Lender reserves the right to apply any payment by Debtor,
or for account of Debtor, toward this Note or any other
obligation of Debtor to Lender.
COLLATERAL. This Note and all other obligations of Debtor to
Lender, and all renewals or extensions thereof, are secured by
all collateral securing this Note and by all other security
interests heretofore or hereafter granted to Lender as more
specifically described in Security Agreements and other securing
documentation.
ACCELERATION. At option of holder, the unpaid balance of this
Note and all other obligations of Debtor to holder, whether
direct or indirect, absolute or contingent, now existing or
hereafter arising, shall become immediately due and payable
without notice or demand upon the occurrence or existence of any
of the following events or conditions: (a) Any payment required
by this Note or any other note or obligation of Debtor to holder
or to others is not made when due or the occurrence or existence
of any event which results in acceleration of the maturity of any
obligation of Debtor to holder or to others under any promissory
note, agreement or undertaking; (b) Debtor defaults in
performance of any covenant, obligation, warranty or provision
contained in any loan agreement or in any instrument or document
securing or relating to this Note or any other note or obligation
of Debtor to holder or to others; (c) Any warranty,
representation, financial information or statement made or
furnished to Lender by or in behalf of Debtor proves to have been
false in any material respect when made or furnished; (d) The
making of any levy against or seizure, garnishment or attachment
of any collateral; (e) Any time Lender in good faith determines
prospect of payment of this Note is impaired; (f) When in the
judgment of Lender the collateral, if any, becomes unsatisfactory
or insufficient either in character or value and upon request,
Debtor fails to provide additional collateral as required by
Lender; (g) Loss, theft, substantial damage or destruction of
collateral, if any; (h) Death, dissolution, change in senior
management, or termination of existence of any Debtor; or (i)
Appointment of a receiver over any part of the property of any
Debtor, the assignment of property by any Debtor for the benefit
of creditors, or the commencement of any proceedings under any
bankruptcy or insolvency laws by or against any party liable,
directly or indirectly, hereunder.
WAIVERS. No waiver by holder of any payment or other right under
this Note or any related agreement or documentation shall operate
as a waiver of any other payment or right.
GOVERNING LAW. Any cause of action for a breach or enforcement
of, or a declaratory judgment respecting, this agreement or any
agreement related to the execution and delivery of this agreement
shall be commenced and maintained only in the United States
District Court for the Northern District of Oklahoma or the
applicable Oklahoma state trial court sitting in Tulsa, Oklahoma
and having subject matter jurisdiction; provided, however, any
action to foreclose any deed of trust or real estate mortgage
securing finance or repayment shall be brought in any county having
mandatory venue thereof pursuant to the venue statutes of the
State of Oklahoma.
COLLECTION COSTS. All parties liable for payment hereunder agree
to pay reasonable costs of collection, including an attorney's
fee of a minimum of fifteen percent (15%) of all sums due upon
default.
RIGHT OF OFFSET. Any indebtedness due from holder hereof to
Debtor or any party hereto including, but without limitation, any
deposits or credit balances due from holder, is pledged to secure
payment of this Note and any other obligation to holder of Debtor
or any party hereto, and may at any time while the whole or any
part of such obligation remains unpaid, either before or after
Maturity hereof, be appropriated, held or applied toward the
payment of this Note or any other obligation to holder of Debtor
or any party hereto.
PURPOSE. Debtor affirms that the proceeds of this Note are to be
used for a business or agricultural purpose and not for a
personal, family or household purpose.
ENTIRE AGREEMENT. All parties acknowledge that this Note and
related documents contain the complete and entire agreement
between Debtor and Lender and no variation, modification, changes
or amendments to this Note or related documents shall be binding
unless in writing and signed by all parties. No legal
relationship is created by the execution of this Note and related
documents except that of debtor and creditor or as stated in
writing.
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LENDER NAME AND ADDRESS DEBTOR(S) SIGNATURE(S)
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The Beard Company
Bank of Oklahoma, N.A.
OKC Main HERB MEE, JR.
P.O. Box 268800 Herb Mee, Jr., President
Oklahoma City, OK 73126-8800
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