Promissory Note between Texas Timberjack, Inc. and BancorpSouth Bank dated April 12, 2002

Summary

Texas Timberjack, Inc. has agreed to borrow $500,000 from BancorpSouth Bank under a promissory note dated April 12, 2002. The loan is a single advance with a variable interest rate set at 0.5% above the Wall Street Journal Prime Rate, adjusting daily. The principal and accrued interest are due by June 11, 2004. The loan is secured by the borrower's inventory, excluding parts inventory at a specified location. The agreement is the final written contract between the parties, with no unwritten terms or side agreements.

EX-10.6 8 dex106.txt PROMISSORY NOTE- 4/12/2002 Exhibit 10.6 - -------------------------------------------------------------------------------- TEXAS TIMBERJACK, INC. BANCORPSOUTH BANK Loan Number 265000146917 ---------------- 6004 S US HWY 59 501 SOUTH WASHINGTON Date 4/12/2002 ------------------------- LUFKIN, TX 75637 MARSHALL, TX 75670 Maturity Date 6/11/2004 ---------------- Loan Amount $ $500,000.00 ----------------- Renewal Of ------------------- 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. - -------------------------------------------------------------------------------- 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 ------------------------------------------------------ Dollars $ $500,000.00 ----------------------------------------------------------------------- [X] Single Advance: I will receive all this principal sum on 4/12/2002. No --------- 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 ------------------------------------ I will receive the amount of $ and future principle - ---------- -------------- advances are contemplated. Conditions: The condition for future advances are ------------------ - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [ ] 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 . ------------------------------------- [ ] 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 - ---------------- -------------- ------------- change . - ---------------------- [X] Variable Rate: This rate may change as stated below. [X] Index Rate: The future rate will be .50% ABOVE the following ------------ index rate: --------------------------------------------------------------------- WSJ PRIME RATE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [ ] Ceiling Rate: The interest rate ceiling for this note is the ----- ceiling rate announced by the Credit Commissioner from time to time. - ----------- [X] Frequency and Timing: The rate on this note may change as often as DAILY . - ------------------------------------------------------------------------------- A change in the interest will take effect THE SAME DAY THAT THE --------------------- RATE OF INTEREST AS SET OUT ABOVE CHANGES DURING THE TERM OF THIS NOTE. - ---------------------------------------------------------------------- [ ] Limitations: During the term of this loan, the applicable annual interest rate will not be more than N/A % or less than N/A %. ------------- -------------- The rate may not change more than N/A % each N/A . ----------------- ------------------- 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. [ ] . --------------------------------------------------------------------------- ACCRUAL METHOD: Interest will be calculated on a ACTUAL/360 DAY basis. ------------------ 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 . ----------------------------------------------------- [ ] LATE CHARGE: If a payment is made more than days after it is due, ------------- I agree to pay a late charge of ------------------------------------------------- . - ------------------------------------------------------------------------------ [ ] ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which [ ] are [ ] are not included in the principal amount above: . - ------------------------------------------------------------------------------ PAYMENTS: I agree to pay this note as follows: [X] Interest: I agree to pay accrued interest WITH PRINCIPAL ----------------------------------- - -------------------------------------------------------------------------------- [X] Principal: I agree to pay the principal ON JUNE 11, 2002 ----------------------------------- - -------------------------------------------------------------------------------- [ ] Installments: I agree to pay this note in payments. The first ------------ payment will be in the amount of $ ---------------------------------------------- and will be due . A payment of $ ------------------------------ ------------------ will be due thereafter. The final payment of --------------------------------- the entire unpaid balance of the principal and interest will be due ------------ - -------------------------------------------------------- . 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.) ------------------------------------ - ------------------------------------------------ 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 ------------------- (BUSINESS) ---------------------------- 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. - -------------------------------------- Signature for Lender _______________________________________ TEXAS TIMBERJACK, INC. BY HAROLD ESTES, PRESIDENT - ------------------------------------ --------------------------------------- - ------------------------------------ --------------------------------------- ---------------------------------------