Production Payment Agreement between The Beard Company and Payee (May 2004)

Summary

The Beard Company, an Oklahoma corporation, agrees to pay a specified bonus amount (Production Payment) to the Payee as a reward for participating in a private offering. The payment is due without interest on November 30, 2006, coinciding with the maturity of a related promissory note. This agreement outlines the payment terms and is executed by The Beard Company and the Payee.

EX-10.3 4 bcexh10-3.txt Exhibit 10.3 Production Payment Amount: $___,___.__ No. 2004-__ PRODUCTION PAYMENT May ___, 2004 FOR VALUE RECEIVED, the undersigned, THE BEARD COMPANY, an Oklahoma corporation (the "Company"), promises to pay to the order of ____________________________________ (the "Payee"), at Suite 320, 5600 North May Avenue, Oklahoma City, Oklahoma 73112, or at such other place as may be designated in writing by the Payee, a bonus or Production Payment in the sum of ____________________________________________ DOLLARS ($___,___.__). Such amount shall be paid, without interest, at the Maturity on November 30, 2006, of that certain Promissory Note, in the amount of $___,000.00, of concurrent date held by the Payee. Such Production Payment shall represent a bonus for Payee's participation in the Offering as more fully described in the Company's $1,200,000 Private Placement Memorandum dated May 13, 2004. IN WITNESS WHEREOF, the Company has executed this instrument effective the date first above written. THE BEARD COMPANY, an Oklahoma corporation By: Herb Mee, Jr., President (the "Company")