Document:

Exhibit 10.4

                                The Beard Company
                           Enterprise Plaza, Suite 320
                              5600 North May Avenue
                          Oklahoma City, Oklahoma 73112
                               Fax (405) 842-9901
                                 (405) 842-2333

                                February 7, 2005

Mr. John Harvison                           FEDERAL EXPRESS
2810 Glenda Ave.                            Telephone:  817-838-4740
Fort Worth, TX 76117
Attention:  Theresa Smith

                                       Re:  BEE/7HBF, LLC Tongzhou Venture
                                            ("BEE/7HBF Tongzhou Venture")

Dear John:

This will confirm our agreement last Friday concerning the subject Venture. The
terms of the revised deal are detailed in the Terms Sheet attached hereto as
"Exhibit A.".

Per the discussions at our January 17 meeting we agreed with you that the
payments for your investment will be spread over a six-month period. As a result
of the revised structure, the new payment schedule is set forth in the Terms
Sheet and highlighted in the attached "Exhibit B."

The organizational mechanics of the deal are depicted in the Terms Sheet. Upon
receipt of a signed copy of this Letter Agreement we will form BEE/7HBF, LLC
(the "LLC") which will in turn form the WFOE (once its name has been determined)
that will own the initial mini-plant (Plant #1). Further, the LLC will have the
first right of refusal to participate in all of Beard's subsequent
fertilizer/composting operations in China until and unless it opts out of a
participation.

If the above meets with your approval, we ask that you please have 7HBF indicate
its acceptance by signing and returning one copy of this Letter Agreement
together with 7HBF's check in the amount of US$62,500 to cover your US$50,000
capital contribution plus the Month 1 cash requirement of US$12,500. Three extra
copies are enclosed for your individual files.

We are excited about the opportunity in China, and are doubly excited to have
you folks as our partner.

Sincerely,
                                            ACCEPTED AND AGREED TO THIS
THE BEARD COMPANY                           11th DAY OF FEBRUARY, 2005

                                            7HBF, Ltd.
/s/ Herb Mee, Jr.                           By:  7HBF Management Company, Ltd.
                                                   General Partner
Herb Mee, Jr., President
                                                   /s/ Randall W. Harvison
HMJr/do                                     By   _____________________________
                                                 Name:  Randall W. Harvison
                                                 Title:    Manager
cc:   Randall W. Harvison
       John D. Harvison
<PAGE>
                                    Exhibit A
                                   Terms Sheet

     Beard Environmental Engineering, L.L.C. ("BEE") is seeking the influx of
US$900,000 to fund this project. Following is a summary of the terms of the
proposed arrangement.:

1.   BEE, an Oklahoma limited liability company, and 7HBF, Ltd., a Texas limited
     partnership ("7HBF"), will form BEE/7HBF, LLC, an Oklahoma limited
     liability company (the "LLC").

2.   BEE and 7HBF will each contribute US$50,000 in cash to the LLC. Such
     contributions will be made to the LLC upon execution of the Letter
     Agreement.

3.   7HBF will loan US$850,000 to the LLC in exchange for a 5-year Non-Recourse
     Promissory Note (the "Note") at the current Applicable Federal Mid Term
     Rate of 3.83%. Advances will be made against the Note in accordance with
     the following schedule:

         Upon execution of
                   the Letter Agreement     -    US$12,500
                 March 1, 2005              -   US$100,000
                 April 1, 2005              -    US$90,000
                 May 1, 2005                -   US$297,500
                 June 1, 2005               -   US$100,000
                 July 1, 2005               -   US$250,000
                                                ----------
                        Total               -   US$850,000
                                                ==========

         Interest will be paid on such Note annually.

4.   The total investment will be $US950,000, as follows:

                                          7HBF          BEE             TOTAL
                                          ----          ---             -----
       Contributions to the LLC  -       US$50,000    US$50,000       US$100,000
       Loan to the LLC           -      US$850,000            -       US$850,000
                                        ----------    ---------       ----------
            Total                -      US$900,000    US$50,000       US$950,000
                                        ==========    =========       ==========

5.   The LLC will use such funds, as required, to fund the ownership and
     operation of BEE's initial plant (Plant #1) for the formulation of Organic
     Chemical Compound Fertilizer ("OCCF") at a facility located in Tongzhou,
     Hebei Province, China. The facility will be controlled and managed by a
     Chinese Wholly Foreign Owned Enterprise ("WFOE") company whose name has not
     yet been determined.

6.   Beijing Beard Sino-American Bio-Tech Engineering Co. Ltd. ("BTEC") will
     provide operations oversight, initial management and accounting services to
     the WFOE and will receive US$30,000 per month therefor during the life of
     the project ("LOP").*
_______________

     *If the LLC elects to participate in a second plant (Plant #2), BTEC will
receive an additional US$20,000 per month during the LOP for Plant #2 for
providing such services. Should additional plants be added thereafter, BTEC may
receive additional compensation therefor. It is the intention of the parties
that, so long as the LLC is the sole participant in BEE's OCCF activities (see
7. below), BEE will receive as total compensation for such services (i) the
total amount of BEE's overhead in China plus (ii) such portion of The Beard
Company's ("BRCO") overhead in Oklahoma City as may be reasonably allocated to
the OCCF operations in China (collectively, the "China Overhead"). Such amounts
shall be estimated on a quarterly basis and adjusted annually upon audit. If at
any point the LLC elects to opt out of participation, the China Overhead will be
spread proportionally between the LLC and BRCO's other operations in China.

7.   The LLC will have the first right of refusal to participate on the same
     basis as in Plant #1 in all subsequent fertilizer/composting operations
     undertaken by BRCO and its affiliates in China until and unless it opts out
     of a participation.

8.   7HBF will have the sole power to determine when and in what amounts
     principal payments will be made on the loan from available LLC funds.

9.   The LLC will elect to be a partnership for U.S. tax purposes.

10.  BEE and 7HBF will have equal representation on the Board of Managers. The
     Board of Managers will elect the Officers of the LLC.

11.  Ownership and equity in the LLC shall be shared as follows: BEE - 50%; 7HBF
     - 50%

12.  An LLC Operating Agreement will be furnished for review and approval
     following execution of the Letter Agreement.
<PAGE>
                                                                      Exhibit B
<TABLE>
                                                      BEE/7HBF Tongzhou Venture
                                          Summary of Cash Flow Through the First Six Months
<CAPTION>
====================================================================================================================================
           Description                     PRE-OPERATING                                                     Year 1          Total
                                     ------------------------------------------------------------------- -------------
                                       Mth 1          Mth 2         Mth 3         Mth 4         Mth 5         Mth 6
====================================================================================================================================
<S>                                  <C>            <C>            <C>          <C>           <C>            <C>          <C>
Cash Inflows
      7HBF Loan                      $  12,500      $ 100,000      $ 90,000     $ 297,500     $ 100,000      $ 250,000    $ 850,000
      Capital Contribution           $ 100,000      $       -      $      -     $       -     $       -      $       -    $ 100,000
      Fixed Asset Loan               $       -      $       -      $      -     $       -     $       -      $       -    $       -
      Sales Revenue                  $       -      $       -      $      -     $       -     $       -      $       -    $       -
                                     -----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
      Total Inflow                   $ 112,500      $ 100,000      $ 90,000     $ 297,500     $ 100,000      $ 250,000    $ 950,000
----------------------------------------------------------------------------------------------------------------------
Cash Outflows
      Capital Expenditures           $       -      $ 80,325       $ 49,815     $ 246,165     $  59,325      $       -    $ 435,630
      Manufacturer's  Credit         $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Pre-Operating Costs            $  53,179      $ 47,942       $ 47,075     $  50,568     $  49,810      $       -    $ 248,574
      Capital Investment Loan Fee    $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Cost of Goods Sold             $       -      $      -       $      -     $       -     $       -      $       -    $       -
      G&A and Other Expenses         $       -      $      -       $      -     $       -     $       -      $  53,141    $  53,141
      Value Added Tax                $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Repayment of Manufac. Credit   $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Repayment of Capital Loan      $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Repayment of Fixed Assets Loan $       -      $      -       $      -     $       -     $       -      $       -    $       -
                                                                                                                          $       -
      Change in Accounts Payable     $       -      $      -       $      -     $       -     $       -      $ (34,036)   $ (34,036)
      Change in Interest Payable     $     (40)     $   (359)      $   (648)    $  (1,599)    $  (1,923)     $  (7,282)   $ (11,851)
      Change in Accrued Payroll      $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Change in Accounts Receivable  $       -      $      -       $      -     $       -     $       -      $       -    $       -
      Change in Inventory            $       -      $      -       $      -     $       -     $       -      $ 185,024    $ 185,024
      Depreciation & Amortization    $       -      $      -       $      -     $       -     $       -      $  (7,139)   $  (7,139)
                                     -----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
      Total Outflow                  $  53,139      $127,907       $ 96,243     $ 295,134     $ 107,212      $ 189,707    $ 869,342
------------------------------------------------------------------------------------------------------------------------------------

Net Cash Flow                        $  59,361      $(27,907)      $ (6,243)    $   2,366     $  (7,212)     $  60,293    $  80,658

Beginning Cash Balance               $ 112,500      $ 59,361       $ 31,453     $  25,211     $  27,577      $  20,365

------------------------------------------------------------------------------------------------------------------------------------
Ending Cash Balance                  $  59,361      $ 31,453       $ 25,211     $  27,577     $  20,365      $  80,658
------------------------------------------------------------------------------------------------------------------------------------

Note: The numbers presented herewith are estimates.  Actual results may vary.  Totals may not sum exactly as a result of rounding.
Source: Beard Environmental Engineering, 2005
</TABLE>Exhibit 10.5

                                    UNSECURED
                                 PROMISSORY NOTE

$850,000.00                                              Oklahoma City, Oklahoma
                                                               February 14, 2005

     For value received, the undersigned, BEE/7HBF, LLC, an Oklahoma limited
liability company (the "Maker"), agrees to all of the terms of this Promissory
Note (this "Note") and promises to pay to the order of 7HBF, Ltd., a Texas
limited partnership (the payee, its successors and assigns are hereinafter
called the "Holder"), at Enterprise Plaza, Suite 320, 5600 N. May, Oklahoma
City, Oklahoma 73112, or at such other place as may be designated in writing by
the Holder of this Note, the principal sum of EIGHT HUNDRED FIFTY THOUSAND
DOLLARS ($850,000.00) or, if less than such amount, the aggregate unpaid
principal amount of all advances or loans made by the Holder to the Maker, and
all interest accruing thereon. Advances will be made by the Holder to the Maker
in accordance with the Terms Sheet contained at Pages 1-2 of the revised
Confidential Private Placement Memorandum dated February 7, 2005 between The
Beard Company and John Harvison, or as subsequently agreed to by the parties.
This Note will be payable as follows:

         Prior to Default the unpaid principal balance of this Note will bear
         interest at the current Applicable Federal Mid Term Rate of 3.83% (the
         "Applicable Rate"). Interest will commence to accrue on the date
         advances or loans are made on the Note and thereafter until the Note is
         paid in full. Payments of accrued interest shall be due and payable
         annually commencing on February 14, 2006. The Maker will have the sole
         power to determine when and in what amounts principal payments will be
         made on the Note from available LLC funds. All obligations evidenced by
         and owing pursuant to the terms of this Note, including unpaid
         principal and interest, are due and payable February 14, 2010 (the
         "Maturity Date").

     Both principal and interest owing pursuant to the terms of this Note are
payable in the lawful currency of the United States of America and in
immediately available funds. All advances made on the Note will be applied to
the Note when received by the Maker hereof. All payments made on this Note will
be applied to this Note when received by the Holder hereof. Any sum not paid
when due will bear interest at the rate equal to the Applicable Rate plus six
percent (6%) and will be paid at the time of, and as a condition precedent to,
the curing of any "Default", as that term is hereinafter defined in this Note.
During the existence of any Default, the Holder of this Note may apply payments
received on any amount due hereunder or under the terms of any instrument
hereafter evidencing or securing said indebtedness as the Holder may determine.
The Maker agrees that if, and as often as, this Note is placed in the hands of
an attorney for collection or to defend or enforce any of the Holder's rights
hereunder, the Maker will pay to the Holder all reasonable attorney's fees and
all expenses incurred by the Holder in connection therewith.

     The undersigned has no in personam liability for the payment of this Note.

                                                                         /s/HMJr

THIS NOTE IS GIVEN BY THE MAKER AND ACCEPTED BY THE HOLDER PURSUANT TO A LENDING
TRANSACTION CONTRACTED, CONSUMMATED, AND TO BE PERFORMED IN OKLAHOMA CITY,
OKLAHOMA COUNTY, OKLAHOMA, AND THIS NOTE SHALL BE CONSTRUED ACCORDING TO THE
LAWS OF THE STATE OF OKLAHOMA.

     The payment of all indebtedness evidenced by this Note is unsecured.
However, in the event of any Default, the Holder may request, and the Maker
agrees to furnish to the Holder, agreeable collateral and such security
agreements as the Maker may reasonably require to secure the indebtedness.

     At the option of the Holder, the unpaid balance of this Note, and all other
obligations of the Maker to the Holder, whether direct or indirect, absolute or
contingent, now existing or hereafter arising, shall become immediately due and
payable without presentment, protest, notice or demand upon the occurrence or
existence of one or more of the following events or conditions ("Default"):

     1. any payment required by this Note or any other note or obligation of the
Maker to the Holder or to others is not made when due in the amount required;
and

     2. any default or breach occurs in the performance of any covenant,
obligation, representation, warranty, or provision contained in this Note or in
any other note or obligation of the Maker to Holder or to others;

     No waiver of any payment or other right under this Note by the Holder shall
operate as a waiver of any other payment or right. Any payments hereunder may,
at the option of the Holder, be recorded on this Note and shall be prima facie
evidence of such payments and the unpaid balance of this Note.

     The Maker waives presentment for payment, protest and notice of nonpayment.

     IN WITNESS WHEREOF, the Maker has executed this instrument as of the 16th
day of February, 2005, effective as of February 14, 2005.

                               BEE/7HBF, LLC, an Oklahoma
                               limited liability company

                               By   /s/ Herb Mee, Jr.
                                    Herb Mee, Jr., Vice President

                                                                         /s/HMJr

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