Exhibit 10.5
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TEXAS TIMBERJACK, INC. BANCORPSOUTH BANK Loan Number 265000146873
6004 S US HWY 59 501 SOUTH WASHINGTON -----------------
LUFKIN, TX 75637 MARSHALL, TX 75670 Date 4/12/2002
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Maturity Date 4/12/2004
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Loan Amount $ $1,500,000.00
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Renewal Of
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BORROWER'S NAME AND ADDRESS LENDER'S NAME AND ADDRESS
"I" includes each borrower "You" means the lender,
above, joint and severally. its successors and assigns.
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For value received, I promise to you, or your order, at your address listed
above the PRINCIPAL sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AND 00
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CENTS Dollars $ $1,500,000.00
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[X] Single Advance: I will receive all this principal sum on 4/12/2002.
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No additional advances are contemplated under this note.
[ ] Multiple Advance: The principal sum shown above is the maximum amount of
principal I can borrow under this note. On
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I will receive the amount of $ and future
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principle advances are contemplated.
Conditions: The condition for future advances are
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[ ] Open End Credit : You and I agree that I may borrow up to the maximum
amount of principal more than one time. This feature is subject to all other
conditions and expires on .
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[ ] Closed End Credit: You and I agree that I may borrow up to the maximum
only one time (and subject to all other condition).
INTEREST: I agree to pay interest on the outstanding principal balance from
4/12/2002 at the rate of 6.000 % per year until 4/12/2002.
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[ ] Variable Rate: This rate may change as stated below.
[ ] Index Rate: The future rate will be the following index rate:
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[ ] Ceiling Rate: The interest rate ceiling for this note is the
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ceiling rate announced by the Credit Commissioner from time to time.
[ ] Frequency and Timing: The rate on this note may change as often as
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A change in the interest will take effect
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[ ] Limitations: During the term of this loan, the applicable annual
interest rate will not be more than N/A % or less than N/A %.
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The rate may not change more than N/A % each N/A .
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Effect of Variable Rate: A change in the interest rate will have the following
effect on the payment:
[ ] The amount of each scheduled [ ] The amount of the final payment will
payment will change. change.
[ ] .
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ACCRUAL METHOD: Interest will be calculated on a ACTUAL/360 DAY basis.
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POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note
owing after maturity, and until paid in full, as stated below:
[X] on the same fixed or variable rate basis in effect before maturity
( as indicated above ).
[ ] at the rate equal to .
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[ ] LATE CHARGE: If a payment is made more than days after it is due,
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I agree to pay a late charge of
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.
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[ ] ADDITIONAL CHARGES: In addition to interest , I agree to pay the following
charges which [ ] are [ ] are not included in the principal amount above:
.
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PAYMENTS: I agree to pay this note as follows:
[ ] Interest: I agree to pay accrued interest
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[ ] Principal: I agree to pay the principal
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[X] Installments: I agree to pay this note in 24 payments. The first
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payment will be in the amount of $ $66,532.65 and will be due 5/12/2002.
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A payment of $ $66,532.65 will be due 12TH OF EACH MONTH
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thereafter. The final payment of the entire unpaid balance of the principal and
interest will be due 4/12/2004 .
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ADDITIONAL TERMS;
ALL INVENTORY NOW OWNED AND HEREAFTER
ACQUIRED BY DEBTOR WHEREVER LOCATED,
EXCEPT PARTS INVENTORY ---------------------------------
6004 S US HWY 59 [X] SECURITY: This note is
LUFKIN, TX 75904 separately secured by
(describe separate document
by type and date):
SEC AGRMT DATED 4/12/2002
(This section is for your
internal se. failure to list a
separate security document does
not mean the agreement will not
secure this note.)
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THIS WRITTEN LOAN AGREEMENT REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PURPOSE: The purpose of this
PRIOR, loan REFINANCED FROM ANOTHER
CONTEMPORANEOUS, OR SUBSEQUENT ORAL ----------------------------
AGREEMENTS OF THE PARTIES. INSTITUTION (BUSINESS)
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SIGNATURES: I AGREE TO THE TERMS
OF THIS NOT (INCLUDING THOSE ON
THERE ARE NO UNWRITTEN ORAL PAGE 2). I have received a copy
AGREEMENTS BETWEEN THE PARTIES. on today's date.
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Signature for Lender
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TEXAS TIMBERJACK, INC.
BY HAROLD ESTES, PRESIDENT
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