Account Officer Principal Loan Date Maturity Loan No Call/Coll Initials $125,150.00 02-27-2004 04-27-2004
11012973 4(2N)/OPN TJS
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
particular loan or item. Any item above containing ***** has been omitted due to text length limitations.
Borrower: The Beard Company (TIN: 73-0970298) Lender: BANK OF NICHOLS HILLS
PROMISE TO PAY. The Beard Company ("Borrower") promises to pay to BANK OF NICHOLS HILLS
("Lender"), or order, in lawful money of the United States of America, the principal amount of One Hundred
Twenty-five Thousand One Hundred Fifty & 00/100 Dollars ($125,150.00) or so much as may be outstanding,
together with interest at the rate of 7.000% per annum on the unpaid outstanding principal balance of each
advance. Interest shall be calculated from the date of each advance until repayment of each advance.
PAYMENT. Borrower will pay this loan In one payment of all outstanding principal plus all accrued unpaid
interest on April 27, 2004. Unless otherwise agreed or required by applicable law, payments will be applied first
to any accrued unpaid interest; then to prlnclpal; and then to any unpaid collection costs. The annual interest rate
for this Note Is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year
of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as
Lender may designate in writing.
PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are eamed fully as of the
date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default),
except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion
of the amount owed earli