Exhibit 10.6
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TEXAS TIMBERJACK, INC. BANCORPSOUTH BANK Loan Number 265000146917
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6004 S US HWY 59 501 SOUTH WASHINGTON Date 4/12/2002
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LUFKIN, TX 75637 MARSHALL, TX 75670 Maturity Date 6/11/2004
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Loan Amount $ $500,000.00
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Renewal Of
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BORROWER'S NAME AND LENDER'S NAME AND
ADDRESS ADDRESS
"I" includes each borrower above, joint and severally. "You" means the lender,
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 FIVE HUNDRED THOUSAND DOLLARS AND 00 CENTS
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Dollars $ $500,000.00
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[X] Single Advance: I will receive all this principal sum on 4/12/2002. No
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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 principle
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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 5.250 % per year until the next rate
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change .
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[X] Variable Rate: This rate may change as stated below.
[X] Index Rate: The future rate will be .50% ABOVE the following
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index rate:
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WSJ PRIME 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.
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[X] Frequency and Timing: The rate on this note may change as often as
DAILY .
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A change in the interest will take effect THE SAME DAY THAT THE
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RATE OF INTEREST AS SET OUT ABOVE CHANGES DURING THE TERM OF THIS NOTE.
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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 payment will change. [ ] The amount of the
final payment will 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:
[X] Interest: I agree to pay accrued interest WITH PRINCIPAL
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[X] Principal: I agree to pay the principal ON JUNE 11, 2002
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[ ] Installments: I agree to pay this note in payments. The first
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payment will be in the amount of $
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and will be due . A payment of $
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will be due thereafter. The final payment of
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the entire unpaid balance of the principal and interest will be due
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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 -----------------------------------
LUFKIN, TX 75904 [X] SECURITY: This note is
separately secured by (describe
separate document by type and date):
SEC AGRMT DATED 4/12/2002
(This section is for your internal
use. 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 PURPOSE: The purpose of
CONTRADICTED BY EVIDENCE OF PRIOR, this loan REFINANCED FROM
CONTEMPORANEOUS, OR SUBSEQUENT ORAL ---------------
AGREEMENTS OF THE PARTIES. ANOTHER INSTITUTION
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(BUSINESS)
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SIGNATURES: I AGREE TO THE TERMS OF
THERE ARE NO UNWRITTEN ORAL THIS NOT (INCLUDING THOSE ON PAGE 2).
AGREEMENTS BETWEEN THE PARTIES. I have received a copy 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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