CHANGE IN TERMS AGREEMENT
CHANGE IN TERMS AGREEMENT
| Principal | Date of Modification | Maturity Date | Loan No. | Call. / Coll. | Account | Officer | Initials |
| $1,500,000.00 | 10-11-07 | 12-31-2008 | 72818 | 220 / 220 | T006773 | DBL |
|
| Borrower: | The Beard Company 5600 N May Ave Suite 320 Oklahoma City, OK 73112 | Lender: | First Fidelity Bank N A Northwest Business Office P O Box 32282 Oklahoma City, OK 73123-0482 (405) 416-2222 |
| Original Principal Amount: $1,500,000.00 | Interest Rate as of 6/08/2007: 9.750% | Date of Agreement: June 8, 2007 |
DESCRIPTION OF EXISTING INDEBTEDNESS. A Promissory Note dated June 8, 2007 in the original principal amount of $1,500,000.
DESCRIPTION OF COLLATERAL. Security interest in the Beard Company’s interest in the McElmo Dome Unit Montezuma and Delores Counties Colorado dated 6/8/07 will be modified as follows:
DESCRIPTION OF CHANGE IN TERMS. The following term as outlined in the "Definitions" section of the Business Loan Agreement dated 6/8/07 will be modified as follows:
"Reducing Commitment Amount" shall mean (i) the modified principal amount of $1,500,000, and (ii) the principal amount resulting from the monthly reductions to occur throughout the term of the loan on the last day of each month, as outlined in the following schedule:
|
| Date of Principal Reduction | Amount of Principal Reduction |
|
| July 2007 | $ 0 |
|
| August 2007 | $ 0 |
|
| September 2007 | $ 0 |
|
| October 2007 | $ 0 |
|
| November 2007 | $ 25,000 |
|
| December 2007 | $ 25,000 |
|
| January 2008 | $ 50,000 |
|
| February 2008 | $ 50,000 |
|
| March 2008 | $ 75,000 |
|
| April 2008 | $ 75,000 |
|
| May 2008 | $ 75,000 |
|
| June 2008 | $ 75,000 |
|
| July 2008 | $ 75,000 |
|
| August 2008 | $ 75,000 |
|
| September 2008 | $ 75,000 |
|
| October 2008 | $ 75,000 |
|
| November 2008 | $ 75,000 |
|
| December 2008 | $ 75,000 |
CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions.
PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT.
BORROWER:
THE BEARD COMPANY
By: _____________________________________________
Herb Mee, President
LENDER:
FIRST FIDELITY BANK N A
X _____________________________________________
Danny Lawson, Executive Vice President
