Document:

plainsnote

Page 1 of 7   PROMISSORY NOTE   $5,385,000.00 San Antonio, Texas November 13, 2008   FOR VALUE RECEIVED, the undersigned, ABRAXAS PROPERTIES INCORPORATED,   a Texas corporation and ABRAXAS PETROLEUM CORPORATION, a Nevada corporation, as   maker (hereinafter collectively called "Maker"), promises to pay to the order of PLAINSCAPITAL   BANK, a Texas Financial Institution, as payee (hereinafter called "Payee", which term shall also   refer to any subsequent owner or holder of this Note), the principal sum of FIVE MILLION THREE   HUNDRED EIGHTY-FIVE THOUSAND AND NO/100 DOLLARS ($5,385,000.00), or so much   thereof as may have been advanced, together with interest thereon accruing on any and all   principal amounts from time to time remaining unpaid, at the per annum rate hereinafter stated   (the "Stated Rate"), said principal and interest being payable in lawful money of the United States   of America at 150 East Sonterra Boulevard, Suite 150, San Antonio, Bexar County, Texas   78258.   This Note shall bear interest, except on past due sums, at a per annum rate equal to the   lesser of SIX AND THREE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT   (6.375%), fixed, or the Maximum Lawful Rate (as hereinafter defined) permitted by applicable   law.  Interest shall be calculated on the basis of a three hundred sixty (360) day year for the   actual number of days elapsed (including the first day, but excluding the last day), unless such   rate would result in a usurious rate, in which case, interest shall be calculated on the basis of   three hundred sixty-five (365) or three hundred sixty-six (366) days, as appropriate.     Beginning thirty (30) days from the date hereof, principal and accrued interest in equal   monthly payments will be due and payable in the amount of THIRTY-NINE THOUSAND SEVEN   HUNDRED FIFTY-THREE AND 81/100 DOLLARS ($39,753.81) each, which is based on a   twenty (20) year level payment amortization, until May 13, 2015 (the “Maturity Date”).  At that   time, the entire amount of principal and accrued interest remaining unpaid will be due and   payable.  Interest will be calculated on the unpaid principal to the date of each payment made.   Payments will be credited first to accrued unpaid interest and then to reduction of principal.   The Stated Rate shall not originally be, nor ever be increased to, a rate greater than the   maximum non-usurious contract rate of interest (determined from time to time if the applicable   maximum rate is a floating rate) that Payee may charge Maker under applicable law and in regard   to which Maker would be prevented successfully from raising the claim or defense of usury.   Nothing is this Note or any related contract, charge or receipt, is intended to permit Payee or   any other person to contract for, charge or receive any interest or other amount in excess of the   maximum rate or amount allowed by applicable law, including, as applicable, the laws of the   United States of America and any preemptions thereunder. For purposes of determining   compliance with applicable laws, the following shall apply to the maximum extent permitted by   law: (a) any contract, charge or receipt, whether occurring now or in the future, shall be strictly   limited by this provision; (b) the “Maximum Lawful Rate” shall mean the maximum lawful ceiling,   rate or amount that lender could have contracted to charge or receive under Texas law or   applicable federal law, whichever permits the highest maximum ceiling, rate or amount; (c) to   the extent Texas law establishes the Maximum Lawful Rate, the parties elect the “weekly” rate   under Chapter 303 of the Texas Finance Code or the most favored lender rate, whichever is   Exhibit 10-1    

 

   Page 2 of 7   greater; (d) the Payee may calculate rates or amounts by amortizing, prorating, allocating, and   spreading amounts contracted for, charged or received over the full term or longer if permitted   by applicable law; (e) no contract, charge or receipt shall obligate maker or any obligor to pay   any amount in excess of the Maximum Lawful Rate; and (f) any contract, charge or receipt that,   in the event of acceleration or under any other contingency whatsoever, purports to require the   payment or collection of any amount in excess of the Maximum Lawful Rate, shall be   automatically constrained and reformed so as not to obligate maker or any obligor to pay any   amount in excess of the Maximum Lawful Rate.  If the Payee or any other person ever contracts   for, charges or receives a rate or amount in excess of the Maximum Lawful Rate respecting this   loan document or any related contract, charge or receipt, the excess (whether denominated   principal, time-price differential, interest, charge, fee or otherwise) shall be automatically   constrained and subject to reallocation, cancellation, credit, application, or refund so as to   eliminate any amount in excess of the Maximum Lawful Rate.      In addition to and without limitation of any defenses to which Payee may be entitled   under applicable law, Maker and any obligor agree to provide Payee with written notice and a   reasonable opportunity of at least sixty (60) days to correct any excessive contract, charge or   receipt, and any corrective action by Payee shall relieve Payee of any liability regarding same.    Any such notice to Payee must be by certified mail, return receipt requested, and must provide   Payee with specific details regarding the nature and extent of any alleged excessive contract,   charge or receipt.      In the event Maker elects to prepay this Note, Maker shall provide written notice thereof   to Payee at least thirty (30) days prior to the date to be fixed therein for prepayment, and such   prepayment shall include the payment of all accrued interest on the amount prepaid (and any   interest payable at a higher per annum rate for late payments, if any, and any other sums that   may be payable under any other loan document executed by Maker in connection with this   Note) to the date so fixed.       Maker may prepay this Note in whole or in part at any time without being required to pay   any penalty or premium for such privilege.  All payments hereunder, whether designated as   payments of principal or interest, shall be applied first to unpaid and accrued interest, then to the   discharge of any expenses or damages for which the holder of this Note may be entitled to receive   reimbursement under the terms of this Note or any other instrument now or hereafter executed in   connection with or as security for this Note, and last to unpaid principal.  In the application of any   prepayment of principal as provided for in the preceding sentence, if any principal hereof is to be   paid in installments, in the absence of any written agreement between Maker and Payee, each   such prepayment shall be applied to installments of principal in the inverse order of maturity.  All   past due sums, including principal and interest of this Note, whether due as the result of   acceleration of maturity or otherwise, shall bear interest at the lesser of 18% per annum or the   Maximum Lawful Rate from the date the payment thereof shall have become due until the same   have been fully discharged by payment.  In addition, Payee may charge and collect a late fee of   five percent (5.0%) of any scheduled installment that is more than ten (10) days past due.         Upon an event of default (as defined in the mortgage or Deed of Trust securing this Note   and described below or in the Loan Agreement between Maker and Payee of even date herewith   governing the terms of the Loan evidenced by this Note), at the option of Payee and subject to   notice and rights to cure provided to Maker under the terms of the Loan Agreement or the Deed of     

 

   Page 3 of 7   Trust, this Note and any and all other indebtedness of Maker to Payee shall become and be due   and payable forthwith without demand, notice of default or of intent to accelerate the maturity   hereof, notice of acceleration, notice of nonpayment, presentment, protest or notice of dishonor, all   of which are hereby expressly waived by Maker and each other liable party.  Notwithstanding   anything to the contrary in the mortgage or Deed of Trust securing this Note, the Maker shall be in   default under this Note in the event that Maker or any guarantor defaults under any loan,   extension of credit, security agreement, or any other agreement, in favor of any other creditor or   person that may materially affect any of Maker’s property or Maker’s ability to repay this Note or   perform Maker’s obligations under this Note or any related document.       Maker and each other liable party shall be directly and primarily, jointly and severally, liable   to any legal holder of this Note for the payment of all sums called for hereunder.  Maker and each   other liable party hereby expressly and severally waive grace, any and all demands of any kind or   nature whatsoever, any and all notices of any kind or nature whatsoever (including but not limited   to notice of default, notice of non-payment, notice of dishonor, notice of intent to accelerate the   maturity hereof, notice of acceleration of the maturity hereof, or notice of protest), dishonor,   presentment of any kind or nature whatsoever, protest, and diligence in collecting or bringing any   suit on or under this Note or any other instrument now or hereafter executed in connection with or   as security for this Note, whether before or after the maturity of this Note, except to the extent   expressly set forth in the Loan Agreement, the Deed of Trust or this Note.  Maker and each other   liable party agree:        (1) that Payee or other legal holder of this Note may, at any time, and from time   to time, on request of or by agreement with Maker or any other liable party, with or without   notice to or the consent of Maker or any other liable party, extend the date of maturity of,   renew, extend for any period or rearrange all or any part hereof;        (2) that it will not be necessary for Payee or any holder hereof, in order to   enforce payment of this Note, to first institute or exhaust its remedies against Maker or any   other liable party or to enforce its rights against any security for this Note; and        (3) to any substitution, exchange or release of any security now or hereafter   given for this Note or the release of any party, in whole or in part, primarily or secondarily   liable hereon, with or without notice to or the consent of Maker or any other liable party.       If in the event of default hereunder or under any other instrument now or hereafter   executed in connection with or as security for this Note, this Note is placed in the hands of any   attorney for collection (whether or not suit is filed), or if this Note is collected by suit or legal   proceedings or through probate, bankruptcy, receivership, reorganization, arrangement or other   legal proceedings, Maker and each other liable party agree to pay the reasonable attorneys fees   of Payee and the expenses of collection in connection therewith, but in no event to exceed the   maximum amount permitted by applicable law.         In addition to any other right, security interest, or remedy which Payee may have or which   may be available to Payee or which may exist, arising out of or created under this Note, any other   instrument now or hereafter executed in connection with or as security for this Note, statutory law,   common law, equitable principles, or otherwise, Maker and each other liable party agree that:        

 

   Page 4 of 7     (1) Maker and each other liable party hereby pledge to Payee as security for   the payment of any sums due hereunder and any and all other indebtedness or obligations   of Maker or any other liable party, respectively, to Payee with respect to the Loan   evidenced by this Note, and grant Payee a lien on and security interest in, all funds and   property of Maker and each other liable party on deposit with Payee or in control or   possession of Payee, it being expressly understood that the pledge and lien hereby   granted and created shall be in addition to Payee's right of set off, as well as any other   rights and remedies which Payee may have; however, while the Société Générale Credit   Agreement (as defined in the Business Loan Agreement of even date herewith) is in full   force and effect, the security interest and lien is limited to extend only to such deposits   or indebtedness that arise from rental or other income generated by the Land, the   Improvements or the Leases; and         (2) in the event of default hereunder or under any other instrument now or   hereafter executed in connection with or as security for this Note, Payee is hereby   authorized at any time and from time to time, to set off (less any rebate required by law)   any and all money and deposits (general or special, time or demand, provisional or final),   at any time held and other indebtedness at any time owing by Payee to or for the credit or   the account of Maker or any other liable party and Payee may retain and apply said   money, deposits or proceeds of such collections to the payment of or against any and all   sums due hereunder and any and all other indebtedness or obligations of Maker or any   other liable party to Payee with respect to the Loan evidenced by this Note, irrespective of   whether or not Payee shall have made any demand under this Note or the instrument   creating such indebtedness or obligation, and although such indebtedness or obligations   may be unmatured, provided however, Payee agrees promptly to notify the party whose   account has been set off after any such set off and application has been made by Payee,   but, provided further, that the failure to give such notice shall not affect the validity of such   set off and application thereof, it being expressly understood that the rights of Payee under   this subparagraph are in addition to any other rights and remedies, including, without   limitation, other rights of set off, which Payee may have; further provided, however, that   while the Société Générale Credit Agreement (as defined in the Business Loan Agreement   of even date herewith) is in full force and effect, the offset rights set forth above are limited   to extend only to such deposits or indebtedness that arise from rental or other income   generated by the Land, the Improvements or the Leases.  If Maker's or any other liable   party's deposits or right to receive money from Payee is also owned by someone who has   not agreed to pay this Note, Payee's right of set off will apply to Maker's or such other   liable party's interest in the deposit or obligation and to any other amounts Maker or such   other liable party could withdraw on Maker's or such other liable party's sole request,   signature or endorsement.  Payee's right of set off does not apply to an account or other   obligation where Maker's or any other liable party's rights are only as a fiduciary, nor shall   any such right of set off apply to any Individual Retirement Account, other tax deferred   retirement account or any other property which is exempt by law.  Payee will not be liable   for the dishonor of any check when the dishonor occurs because Payee set off any   indebtedness pursuant to this subparagraph against any of Maker's or any other liable   party's account, and Maker and such other liable parties agree to hold Payee harmless   from any claims arising as a result of Payee's exercise of Payee's right of setoff.       Any check, draft, money order or other instrument given in payment of any portion of this     

 

   Page 5 of 7   Note may be accepted by the holder hereof and handled in collection in the customary manner,   but the same shall not constitute payment hereunder or diminish any rights of the holder hereof   except to the extent that actual cash proceeds of such instrument are unconditionally received by   the holder and applied to this indebtedness in the manner provided elsewhere herein.        This Note is the promissory note referred to herein, has been issued pursuant to, is entitled   to the benefits of, and/or is secured by the following (all of which, together with this Note and all   other documents executed and delivered in connection with the loans evidenced by this Note, are   referred to as the “Loan Documents”):       (1) a first lien created by that certain Deed of Trust, Security Agreement   and Financing Statement (the “Deed of Trust”) of even date herewith, executed by   Abraxas Properties Incorporated to Les Eubank Trustee, that conveys the following   described real property to wit:      LOTS 3 AND 4, BLOCK 7, NEW CITY BLOCK 17606,   CREEKSIDE@CONCORD PARK (PLANNED UNIT DEVELOPMENT),   IN THE CITY OF SAN ANTONIO, BEXAR COUNTY, TEXAS,   ACCORDING TO PLAT THEREOF RECORDED IN VOLUME 9562,   PAGE(S) 156-157, DEED AND PLAT RECORDS OF BEXAR COUNTY,   TEXAS.        (2) all other security agreements, pledge agreements, collateral   assignments, deeds of trust, mortgages, and other lien instruments of any nature,   including those (if any) executed simultaneously herewith, and those heretofore or   hereafter executed, by Maker and/or other(s) in favor of Payee as security for this   Note and any other sums that Maker may owe to Payee.       Reference is hereby made to the above documents for a more particular description of the   property covered thereby and for all relevant purposes.      By the acceleration clauses herein, the Payee expressly does not intend thereby to   collect any excessive unearned interest or finance charges in the event of acceleration of the   amounts due hereunder.      Each Maker states that the purposes of the loan evidenced by this Note are primarily for   business and commercial purposes, and not for personal, family, household, or agricultural   purposes.   Each Maker is jointly and severally responsible for the entire amount of this Note.  The   terms Maker and Payee and other nouns and pronouns include the plural if more than one and   include the masculine or feminine where appropriate.      NOTICE TO MAKER:      THIS WRITTEN LOAN AGREEMENT REPRESENTS THE   FINAL AGREEMENT BETWEEN THE PARTIES AND MAY   NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,     

 

   Page 6 of 7   CONTEMPORANEOUS, OR SUBSEQUENT ORAL   AGREEMENTS OF THE PARTIES.      THERE ARE NO UNWRITTEN ORAL AGREEMENTS   BETWEEN THE PARTIES.      THIS LOAN IS PAYABLE IN FULL AT MATURITY.  YOU MUST REPAY THE   ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE.   THE PAYEE IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT   TIME.  YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF   OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER,   WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND   YOU THE MONEY.  IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY   HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY   ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM   THE SAME LENDER.  A NEW APPLICATION FOR REFINANCING MAY BE   CONSIDERED AT MATURITY.      THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS.  IN   CONNECTION THEREWITH, THE PARTIES ELECT THE WEEKLY RATE CEILING   UNDER CHAPTER 303 OF THE TEXAS FINANCE CODE.  THE PARTIES AGREE   THAT THIS LOAN IS FOR BUSINESS PURPOSES, SHALL BE GOVERNED BY   SUBTITLE A OF TITLE 4 OF THE TEXAS FINANCE CODE, AND SHALL NOT BE   GOVERNED BY CHAPTER 346 OF THE TEXAS FINANCE CODE.  IT IS EXPRESSLY   AGREED AND UNDERSTOOD THAT THE DISTRICT COURTS OF BEXAR COUNTY,   TEXAS AND FEDERAL DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS   SHALL HAVE EXCLUSIVE JURISDICTION AND VENUE OF ALL PROCEEDINGS   BASED ON OR ARISING OUT OF THIS NOTE, AND MAKER HEREBY SUBMITS TO   THE JURISDICTION OF SUCH COURTS.      EXECUTED to be effective on the date above first written.      MAKER:      ABRAXAS PROPERTIES INCORPORATED,   a Texas corporation         By:__________________________________          ROBERT L.G. WATSON, President         By:__________________________________          CHRIS E. WILLIFORD, Vice-President        

 

   Page 7 of 7      ABRAXAS PETROLEUM CORPORATION,    a Nevada corporation         By:__________________________________          ROBERT L.G. WATSON, Presidentplainsmodification0413

NOTICE OF CONFIDENTIALITY RIGHTS:  IF YOU ARE A NATURAL PERSON, YOU MAY   REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS   INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:  YOUR   SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.   SECOND MODIFICATION, RENEWAL AND EXTENSION OF PROMISSORY   NOTE AND DEED OF TRUST LIENS   THE STATE OF TEXAS §   §   COUNTY OF BEXAR §   This Modification, Renewal and Extension of Promissory Note and Deed of Trust Liens   (the “Agreement”) is entered into by and between PLAINSCAPITAL BANK whose address is 70   NE Loop 410, Suite 100, San Antonio, Texas 78216 (“Lender”), and ABRAXAS PROPERTIES   INCORPORATED, a Texas corporation and ABRAXAS PETROLEUM CORPORATION, a   Nevada corporation, as maker (hereinafter collectively called "Maker"), whose address is 18803   Meisner Dr., San Antonio, Texas 78258 (“Borrower”).   W I T N E S S E T H:   A. Borrower executed and delivered that certain Promissory Note dated November 13,   2008, in the original principal amount of FIVE MILLION THREE HUNDRED EIGHTY-FIVE   THOUSAND AND NO/100 DOLLARS ($5,385,000.00), payable to the order of Lender (the   “Note”) which Note was secured by: (i) a Deed of Trust, Security Agreement and Financing   Statement of even date therewith executed by Borrower filed of record in Document No.   20080246078, Official Public Records of Real Property of Bexar County, Texas (the “Deed of   Trust”) covering the real and personal property described as LOTS 3 AND 4, BLOCK 7, NEW   CITY BLOCK 17606, CREEKSIDE@CONCORD PARK (PLANNED UNIT DEVELOPMENT),   IN THE CITY OF SAN ANTONIO, BEXAR COUNTY, TEXAS, ACCORDING TO PLAT   THEREOF RECORDED IN VOLUME 9562, PAGE(S) 156-157, DEED AND PLAT RECORDS   OF BEXAR COUNTY, TEXAS, (“the Property”).    B. Borrower has requested that Lender modify certain provisions of the Note, as   hereinafter provided, and in consideration thereof Borrower has made certain agreements with   Lender as hereinafter more fully set forth.   C. Lender has agreed to such requests, subject to the terms and conditions set forth   herein.   NOW, THEREFORE, for and in consideration of Ten and No/100 Dollars ($10.00) and   other good and valuable consideration, the receipt and sufficiency of which are hereby   acknowledged and agreed, Borrower and Lender hereby agree as follows:   1. Acknowledgment of Outstanding Balance of Note. The parties hereto acknowledge   that the outstanding principal balance of the Note is FOUR MILLION SEVEN HUNDRED TEN   THOUSAND EIGHT HUNDRED FIVE AND 52/100 DOLLARS ($4,710,805.52).   Exhibit 10.2    

 

2      2. Maturity Date: The Maturity Date under the Note is May 13, 2015 (the “Maturity   Date”).       3. Annual Interest Rate on Unpaid Principal from Date:  The Note shall bear interest,   except on past due sums, at a per annum rate equal to the lesser of FOUR PERCENT (4.0%)   fixed, or the Maximum Lawful Rate permitted by applicable law.  Interest shall be calculated on   the basis of a three hundred sixty (360) day year and the actual number of days elapsed   (including the first day, but excluding the last day), unless such rate would result in a usurious   rate, in which case, interest shall be calculated on the basis of three hundred sixty-five (365) or   three hundred sixty-six (366) days, as appropriate.      4. Annual Interest Rate on Matured, Unpaid Amounts:  All past due sums, including   principal and interest of this Note, whether due as the result of acceleration of maturity or   otherwise, shall bear interest at the Maximum Lawful Rate, or if applicable law shall not provide   for a Maximum Lawful Rate, at a rate per annum equal to the eighteen percent (18.0%) from the   date the payment thereof shall have become due until the same have been fully discharged by   payment.  In addition, Payee may charge and collect a late fee of five percent (5.0%) of any   scheduled installment that is ten (10) days past due, except for the payment due at maturity.    5. Modification of Payments. From and after the effective date of this Agreement,   principal and interest shall be due and payable under the Note as follows:       Principal and accrued interest payments of THIRTY-THREE THOUSAND SEVEN   HUNDRED SIXTY-THREE AND 94/100 DOLLARS ($33,763.94) each, are due and payable   beginning on or before April 13, 2013, and continuing regularly and monthly thereafter on the   same day of each month until May 13, 2015 (the “Maturity Date”).  At that time, the entire   amount of principal and accrued interest remaining unpaid will be payable.  Interest will be   calculated on the unpaid principal to the date of each payment made.  Payments will be credited   first to accrued unpaid interest and then to the reduction of principal.  Maker acknowledges that   the payment amount has been computed based on the annual interest rate in effect on the date   hereof amortized over the remaining one hundred eighty-eight (188) months out of the initial   amortization period of twenty (20) years.      6. Usury.  No provisions of this Agreement or the Note or any instrument evidencing or   securing the Note, or otherwise relating to the indebtedness evidenced by the Note, shall   require the payment or permit the collection, application or receipt of interest in excess of the   maximum permitted by applicable state or federal law. If any excess of interest in such respect   is herein or in any such other instrument provided for, or shall be adjudicated to be so provided   for herein or in any such instrument, the provisions of this paragraph shall govern and neither   Borrower nor any endorsers of the Note nor their respective heirs or personal representatives   shall be obligated to pay the amount of such interest to the extent it is in excess of the amount   permitted by applicable law. It is expressly stipulated and agreed to be the intent of Borrower   and Lender to at all times comply with the usury and other laws relating to the Note, the Deed of   Trust, and any subsequent revisions, repeals or judicial interpretations thereof; to the extent   applicable thereto. In the event Lender or other holder of the Note ever receives, collects or   applies as interest any such excess, such amount which would be excessive interest shall be   applied to the reduction of the unpaid principal balance of the Note, and, if upon such   application the principal balance of the Note is paid in full, any remaining excess shall be   forthwith paid to Borrower and the provisions of the Note or the Deed of Trust shall immediately   be deemed reformed and the amounts thereafter collectable thereunder reduced, without the     

 

3      necessity of execution of any new document, so as to comply with the then applicable law, but   so as to permit the recovery of the fullest amount otherwise called for thereunder. In determining   whether or not the interest paid or payable under any specific contingency exceeds the   maximum interest allowed to be charged by applicable law, Borrower and Lender or other   holder hereof shall, to the maximum extent permitted under applicable law, amortize, prorate,   allocate and spread the total amount of interest throughout the entire term of the Note so that   the amount or rate of interest charged for any and all periods of time during the term of the Note   is to the greatest extent possible less than the maximum amount or rate of interest allowed to be   charged by law during the relevant period of time. Notwithstanding any of the foregoing, if at any   time applicable laws shall be changed so as to permit a higher rate or amount of interest to be   charged than that permitted prior to such change, then unless prohibited by law, references in   the Note to “applicable law” for purposes of determining the maximum interest or rate of interest   that can be charged shall be deemed to refer to such applicable law as so amended to allow the   greater amount or rate of interest.      7. Release and Waiver of Usury Claims. In consideration of the benefits received by   Borrower hereunder, Borrower hereby waives, releases and terminates all claims, or right to   claim, whether known or unknown, that Lender has charged, collected or received usurious   interest under the Note or the Deed of Trust and hereby waives and releases any right or power   to bring any claim against Lender for usury or to pursue any cause of action against Lender   based on any claim or usury.      8. Reaffirmation of Representations, Etc. Borrower hereby reaffirms to Lender each of   the representations, warranties, covenants and agreements of Borrower set forth in the Note   and the Deed of Trust.      9. Enforceable Obligations. Borrower hereby ratifies, affirms, reaffirms, acknowledges,   confirms and agrees that the Note represents a valid and enforceable obligation of Borrower,   and Borrower further acknowledges that there are no existing claims, defenses, personal or   otherwise, or rights of setoff whatsoever with respect to the Note, and Borrower further   acknowledges and represents that no event has occurred and no condition exists which would   constitute a default under the Note, the Deed of Trust, or this Agreement, either with or without   notice or lapse of time, or both.      10. No Release of Liens. This Agreement in no way acts as a release or relinquishment   of the liens, security interests and rights (the “Liens”) created or evidenced by the Deed of Trust.   The Liens are hereby ratified and confirmed by Borrower in all respects and are hereby renewed   and extended to secure (i) the principal amount of the Note, (ii) all interest, charges and other   sums payable with respect thereto, and (iii) the performance of all other obligations under the   Deed of Trust.      11. Additional Modifications. Notwithstanding anything to the contrary contained herein   or inferred hereby or in any other instrument executed by Borrower or in any other action or   conduct undertaken by Borrower on or before the date hereof, the agreements, covenants and   provisions contained herein shall constitute the only evidence of Lender’s consent to modify the   terms and provisions of the Note, No express or implied consent to any further modifications   involving any of the matters set forth in this Agreement or otherwise, shall be inferred or implied   from Lender’s execution of this Agreement. Further, Lender’s execution of this Agreement shall   not constitute a waiver (either express or implied) of the requirement that any further   modifications of the Note shall require the express written approval of Lender, no such approval     

 

4      (either express or implied) having been given as of the date hereof.      12. Miscellaneous.      (a) As modified hereby, the provisions of the Note and the Deed of Trust shall   continue in full force and effect, and the Borrower acknowledges and reaffirms its liability to   Lender thereunder. In the event of any inconsistency between this Agreement and the terms of   the Note, or the Deed of Trust, this Agreement shall govern.      (b) Borrower hereby agrees to pay all costs and expenses incurred by Lender in   connection with the execution and administration of this Agreement and the modification of the   Note including, but not limited to, all appraisal costs, title insurance costs, legal fees incurred by   Lender and filing fees.      (c) Any default by Borrower in the performance of its obligations herein contained   shall constitute a default under the Note and the Deed of Trust and shall allow Lender to   exercise all of its remedies set forth in the Note and the Deed of Trust.      (d) Lender does not, by its execution of this Agreement, waive any rights it may   have against any person not a party thereto.      (e) Borrower hereby acknowledges and agrees that the present unpaid principal   balance of the Note, and any future advances of principal drawn off of the Note by Borrower, if   any, together with accrued but unpaid interest thereon at the rate provided for in the Note, is   due and payable upon the terms and conditions set forth in this Agreement and that Lender is   under no obligation to refinance the Note or further modify the Maturity Date.      (f) In case any of the provisions of this Agreement shall for any reason be held to   be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect   any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or   unenforceable provision had never been contained herein.      (g) This Agreement, the Deed of Trust and all other documents and instruments   executed in connection with the Note shall be governed and construed according to the laws of   the State of Texas and the applicable laws of the United States.      (h) This Agreement shall be binding upon and inure to the benefit of Lender,   Borrower and their respective heirs and legal representatives.      (i) Borrower hereby acknowledges and agrees that it has entered into this   Agreement of its own free will and accord and in accordance with its own judgment after advice   of its own legal counsel, and states that it has not been induced to enter into this Agreement by   any statement, act or representation of any kind or character on the part of the parties hereto,   except as expressly set forth in this Agreement.      (j) This Agreement may be executed in multiple counterparts, each of which shall   constitute an original instrument, but all of which shall constitute one and the same agreement.         (k) All other terms, conditions and provisions of the Note and the Deed of Trust     

 

5      shall remain in full force and effect as of the date thereof.      NOTICE TO OBLIGOR      THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL   AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE   CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,   OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.      THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE   PARTIES.      THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY   THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST   THEN DUE.  THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE   LOAN AT THAT TIME.  YOU WILL, THEREFORE, BE REQUIRED TO MAKE   PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL   HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS   LOAN WITH, WILLING TO LEND YOU THE MONEY.  IF YOU REFINANCE   THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE   CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF   YOU OBTAIN REFINANCING FROM THE SAME LENDER.      EXECUTED this the ___ day of April, 2013 to be effective March 13, 2013.      BORROWER:      ABRAXAS PROPERTIES INCORPORATED,   a Texas corporation         By:__________________________________          ROBERT L.G. WATSON, President            ABRAXAS PETROLEUM CORPORATION,    a Nevada corporation         By:__________________________________          ROBERT L.G. WATSON, President                    

 

6      LENDER:      PLAINSCAPITAL BANK      By:_______________________________      Printed Name:______________________      Title:______________________________         STATE OF TEXAS  §       §   COUNTY OF BEXAR  §       On _________________________, 2013, before me personally appeared ROBERT   L.G. WATSON, personally known to me (or proved to me on the basis of satisfactory evidence)   to be the person whose name is subscribed to the within instrument and acknowledged to me   that he/she executed the same in his/her authorized capacity, and that by his/her signature on   the instrument the person, or the entity upon behalf of which the person acted, executed the   instrument.       Witness my hand and official seal.             ___________________________________          Notary Public in and for the State of Texas      STATE OF TEXAS  §       §   COUNTY OF BEXAR  §      On _________________________, 2013, before me personally appeared   _______________________, of PLAINSCAPITAL BANK, personally known to me (or proved to   me on the basis of satisfactory evidence) to be the person whose name is subscribed to the   within instrument and acknowledged to me that he/she executed the same in his/her authorized   capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of   which the person acted, executed the instrument.      Witness my hand and official seal.      ___________________________________   Notary Public in and for the State of Texas      AFTER RECORDING RETURN TO:   PREPARED IN THE LAW OFFICE OF:      PLAINSCAPITAL BANK    FLUME LAW FIRM, LLP   70 NE LOOP 410, SUITE 100   1020 N.E. LOOP 410, SUITE 200    SAN ANTONIO, TEXAS 78216   SAN ANTONIO, TEXAS 78209

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