Exhibit 10(z)
PROMISSORY NOTE - Fixed or Variable Rate - Commercial
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DEBTOR (S) NAME AND NOTE DATE OF MATURITY DATE PRINCIPAL
ADDRESS NUMBER NOTE 07/15/02 AMOUNT
1001 06/30/01 $350,000.00
The Beard Company
5600 N. May Ave.
Suite 320
Oklahoma City, OK
73112
CUSTOMER NEW LOAN OFFICER
NUMBER X RENEWAL OF LOAN(S) JNH539
5664802 NUMBER: 1001
FIXED INTEREST RATE OF ______________ % PER ANNUM
INTEREST PAYABLE: ______________________
X VARIABLE INTEREST RATE 0.50000%
ABOVE Chase Manhattan Prime Rate
INITIAL RATE 7.250% INTEREST PAYABLE MONTHLY
_______________________________________
COLLATERAL CATEGORIES SOCIAL SECURITY NUMBER
73-0970298
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P PURPOSE
A T Accrued interest due and payable MONTHLY,
Y E beginning 07/30/01 and MONTHLY thereafter,
M R with outstanding principal balance and Working Capital
E M unpaid accrued interest due and payable
N S on 07/15/02.
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 paid 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 manner 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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