April 1, 2005
RESTATED AND AMENDED
LETTER LOAN AGREEMENT
The Beard Company
5600 N. May Avenue, Suite 320
Oklahoma City, Oklahoma 73112
Gentlemen:
This Restated and Amended Letter Loan Agreement supersedes and
replaces the
previous Restated and Amended Letter Loan Agreement between the
parties hereto
dated March 26, 2004, as amended by the parties on June 25,
2004.
This Restated and Amended Letter Loan Agreement sets forth the
terms and
conditions under which we have agreed to continue $2,782,900.59 of
the loan
previously made to you in the principal amount of $3,000,000.00
(the "Loan"),
which is no longer a revolving loan. Accordingly, as payments are
made on the
Loan, additional advances will no longer be permitted.
1.
LENDER: The William M.
Beard and Lu Beard
1988 Charitable Unitrust (the "Unitrust").
2.
BORROWER:
The Beard Company.
3.
AMOUNT: $2,782,900.59.
The Loan shall be
evidenced by a
promissory note in the amount of $2,782,900.59 dated
February 14, 2005* (the "Note"). The Borrower shall
be permitted to make prepayments without
penalty up to the amount of the Note.
_______________
*The
Note has been dated February 14, 2005 because it was on that
date
that all accrued interest on the former note was paid and a
principal repayment
was made which reduced the principal balance under the Loan
Agreement from
$2,785,000.00 down to $2,782,900.59.
4.
INTEREST
RATE: A fixed rate of
10.00%.
5.
REPAYMENT: The
outstanding principal balance (the "Indebtedness")
plus unpaid accrued interest shall be due and
payable on April 1.
2007.
6.
COLLATERAL: The Lender, together with certain Note Holders, has
previously filed a Deed of Trust, Assignment of Production,
and Financing Statement of record (a "Lien") on Borrower's
working and overriding royalty interests in the McElmo Dome
Unit in Montezuma and Dolores Counties of Colorado (the
"Interests"). Although
the other Note Holders have been
repaid in full as of this date, the Lien has not been re-
leased even though such Note Holders no longer have an
interest therein.
Moreover, on May 21, 2004, Boatright
Family LLC
