Exhibit 10.3
May 6, 2009
RESTATED AND
AMENDED
LETTER LOAN
AGREEMENT
The Beard Company
Harvey Parkway
301 N.W. 63 rd Street,
Suite 400
Oklahoma City, Oklahoma
73116
Gentlemen:
This Restated
and Amended Letter Loan Agreement (this “Agreement”)
amends and restates 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, and as further restated
and amended by the parties on April 1, 2005, on March 3, 2006, on
June 13, 2007, and on March 25, 2008.
This Agreement sets forth the terms and
conditions under which we have agreed to extend the maturity date
of the current unpaid balance of $2,250,000.00 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.
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1.
LENDER:
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The William M. Beard and Lu Beard
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1988 Charitable Unitrust (the
“Unitrust”).
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2.
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BORROWER:
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The Beard Company (the
“Company”).
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3.
AMOUNT:
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$2,250,000.00. The Loan shall be evidenced by a
promissory note in the amount of $2,250,000.00 dated as of this
date (the “Note”). The Borrower shall be permitted to
make prepayments without penalty up to the amount of the
Note.
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4.
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INTEREST RATE:
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A fixed rate of 10.00%.
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5.
REPAYMENT:
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The outstanding principal balance
(the “Indebtedness”) plus unpaid accrued interest shall
be due and payable on April 1, 2011.
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Prior to the date of this Agreement,
the Loan has been secured by various Deeds of Trust in favor of
Lender and other lenders (collectively, the “Lenders”)
covering Borrower’s working and overriding royalty interests
in the McElmo Dome Unit in Montezuma and Dolores Counties of
Colorado (the “Interests”). Effective as of this date
the Borrower has sold all of its rights, title and interest in and
to the Interests, and Lenders have agreed to release such Deeds of
Trust. Borrower and Lender have now agreed that Borrower shall
henceforth be unsecured.
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7.
COVENANT:
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Until the Indebtedness has
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