Exhibit 10(t)
RENEWAL
PROMISSORY NOTE
$1,750,000.00 Oklahoma City, Oklahoma
March 31, 2001
For value received, the undersigned, The Beard Company, an Oklahoma
corporation (the "Maker"), agrees to all of the terms of this Promissory Note
(this "Note") and promises to pay to the order of William M. Beard and Lu Beard
as Trustees of the William M. Beard and Lu Beard 1988 Charitable Unitrust
(individually and collectively called the "Holder"), at Enterprise Plaza, Suite
320, 5600 N. May, Oklahoma City, Oklahoma 73112, or at such other place as may
be designated in writing by the Holder of this Note, the principal sum of One
Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) or, if less than
such amount, the aggregate unpaid principal amount of all advances or loans made
by the Holder to the Maker, and all interest accruing thereon. This Note will be
payable as follows:
Prior to Default the unpaid principal balance of this Note will bear
interest at the variable rate of ten percent (10%) (the "Applicable
Rate"). Interest will commence to accrue on the unpaid principal
balance of this Note on the date hereof and thereafter until this Note
is paid in full. Interest will be computed for the actual number of
days elapsed at a per diem charge based on a year consisting of three
hundred sixty (360) days. All payments will be applied first to any
accrued interest on this Note and the remainder to the principal
balance of the Note. Accrued interest shall be due and payable
semi-annually, beginning September 30, 2001 and semi-annually
thereafter, with the outstanding principal balance plus unpaid accrued
interest due and payable on March 31, 2003.
Except as otherwise defined herein, all terms defined in the Letter Loan
Agreement of even date herewith between the Maker and the Holder (the "Loan
Agreement") will have the same meanings as therein. Both principal and interest
owing pursuant to the terms of this Note are payable in the lawful currency of
the United States of America and in immediately available funds. The Holder may
disburse the principal of this Note to the Maker in one or more advances or
loans as determined by the Holder in his sole discretion. All payments made on
this Note will be applied to this Note when received by the Holder hereof in
collected funds. Any sum not paid when due will bear interest at the rate equal
to the Applicable Rate plus five percent (5.0%) and will be paid at the time of,
and as a condition precedent to, the curing of any Event of Default. During the
existence of any Event of Default, the Holder of this Note may apply payments
received on any amount due hereunder or under the terms of any instrument
hereafter evidencing or securing said indebtedness as the Holder may determine.
The Maker agrees that if, and as often as, this Note is placed in the hands
of an attorney for collection or to defend or enforce any of the Holder's rights
hereunder, the Maker will pay to the Holder all reasonable attorney's fees and
all expenses incurred by the Holder in connection therewith.
THIS NOTE IS GIVEN BY THE MAKER AND ACCEPTED BY THE HOLDER PURSUANT TO A
LENDING TRANSACTION CONTRACTED, CONSUMMATED, AND TO BE PERFORMED IN OKLAHOMA
CITY, OKLAHOMA COUNTY, OKLAHOMA, AND THIS NOTE SHALL BE CONSTRUED ACCORDING TO
THE LAWS OF THE STATE OF OKLAHOMA. In the event of any Event of Default, the
Holder may request, and the Maker agrees to furnish to the Holder, agreeable
collateral and such security agreements as the Maker may reasonably require to
secure the indebtedness.
This Note is issued subject to the terms of the Loan Agreement. On the
breach of any provision of this Note, or any provision of the Loan Agreement at
the option of the Holder, the entire unpaid indebtedness evidenced by this Note
will become due, payable and collectible then or thereafter as the Holder may
elect, regardless of the date of maturity of this Note. Notice of the exercise
of such option is hereby expressly waived. Failure by the Holder to exercise
such option will not constitute a waiver of the right to exercise the same in
the event of any subsequent default.
The failure of the Holder to exercise any of the remedies or options set
forth in this Note, or in any instrument securing payment hereof, upon the
occurrence of one or more Events of Default, shall not constitute a waiver of
the right to exercise the same or any other remedy at any subsequent time in
respect to the same or any other Event of Default. The acceptance by the Holder
of any payment which is less than the total of all amounts due and payable at
the time of such payment shall not constitute a waiver of the right to exercise
any of the foregoing remedies or options at that time or any subsequent time, or
nullify any prior exercise of such remedy or option, without the express consent
of the Holder.
Time is of the essence of each obligation of the Maker hereunder.
The makers, endorsers, sureties, guarantors and all other persons who may
become liable for all or any part of this obligation severally waive presentment
for payment, protest, demand and notice of nonpayment. Said parties consent to
any extension of time (whether one or more) of payment hereof, the modification
(whether one or more) of payment hereof, release or substitution of all or part
of the security for the payment hereof or release of any party liable for
payment of this obligation. Any such extension or release may be made without
notice to any such party and without discharging such party's liability
hereunder.
The Maker has the right to prepay this Note in whole or in part at any time
and from time to time without premium or penalty, but with accrued interest to
the date of the prepayment on the amount prepaid.
The Maker waives presentment for payment, protest and notice of nonpayment.
IN WITNESS WHEREOF, the Maker has executed this instrument effective on the
date first above written.
ATTEST: THE BEARD COMPANY
REBECCA G. WITCHER HERB MEE, JR.
Rebecca G. Witcher, Secretary Herb Mee, Jr., President