EXHIBIT 10.36 AMENDED AND RESTATED PROMISSORY NOTE $1,100,000.00 Oklahoma City, Oklahoma October 7, 2005 For value received, the undersigned, BEARD PINNACLE, LLC, an Oklahoma limited liability company (the "Maker"), agrees to all of the terms of this Promissory Note (this "Note") and promises to pay to the order of PinnOak Resources, LLC, a Delaware limited liability company (the payee, its successors and assigns are hereinafter called the "Holder"), at Pointe Plaza Suite 300, 601 Technology Drive, Canonsburg, PA 15317-9523, or at such other place as may be designated in writing by the Holder of this Note, the principal sum of ONE MILLION ONE HUNDRED THOUSAND DOLLARS ($1,100,000.00) 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: 1. Interest will accrue on the unpaid principal balance of this Note at the per annum interest rate of four percent (4%) (the "Applicable Rate"). Interest will commence to accrue as advances or loans are made on the Note and thereafter until this Note is paid in full. 2. If Holder and Maker enter into a Subscription Agreement on or before December 31, 2005, providing for the sale and issuance of a membership interest in Maker to Holder (the "Subscription Agreement"), then all unpaid principal amounts advanced pursuant to the terms of this Note and all unpaid interest accrued thereon shall be immediately applied to the purchase or subscription price for that membership interest, and this Note shall then be cancelled and of no further force or effect. 3. If Holder and Maker do not enter into a Subscription Agreement on or before December 31, 2005, then all obligations evidenced by and owing pursuant to the terms of this Note, including unpaid principal and interest, shall be due and payable July 1, 2006 (the "Maturity Date"). 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. All advances made on the Note will be applied to the Note when received by the Maker hereof. All payments made on this Note will be applied to this Note when received by the Holder hereof. Any sum not paid when due will bear interest at the rate equal to the Applicable Rate plus six percent (6%) and will be paid at the time of, and as a condition precedent to, the curing of any "Default", as that term is hereinafter defined in this Note. During the existence of any 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 Promissory Note supersedes and replaces that certain Promissory Note dated September 29, 2005, in the original amount of FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) between the Maker and the Holder. 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. The payment of all indebtedness evidenced by this Note is unsecured. However, in the event of any 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. At the option of the Holder, the unpaid balance of this Note, and all other obligations of the Maker to the Holder, whether direct or indirect, absolute or contingent, now existing or hereafter arising, shall become immediately due and payable without presentment, protest, notice or demand upon the occurrence or existence of one or more of the following events or conditions ("Default"): 1. any payment required by this Note or any other note or obligation of the Maker to the Holder or to others is not made when due in the amount required; and 2. any default or breach occurs in the performance of any covenant, obligation, representation, warranty, or provision contained in this Note or in any other note or obligation of the Maker to Holder or to others; No waiver of any payment or other right under this Note by the Holder shall operate as a waiver of any other payment or right. Any payments hereunder may, at the option of the Holder, be recorded on this Note and shall be prima facie evidence of such payments and the unpaid balance of this Note. The Maker waives presentment for payment, protest and notice of nonpayment. IN WITNESS WHEREOF, the Maker has executed this instrument this 29th day of September, 2005. BEARD PINNACLE, LLC, an Oklahoma limited liability company /s/ W. M. Beard By_______________________________ W. M. Beard, Chairman of the Board