Exhibit 10.3


 





 


Promissory Note


 






 





	$430,000.00	Promissory Note Date: March 26, 2012
	Date of Advance:________________ (to be inserted by Lender)







 


 


FOR VALUE RECEIVED,
THE WOOD ENERGY GROUP, INC., a corporation organized under the laws of the State of Missouri and having a principal place
of business at 2255 Glades Road, Boca Raton, Florida 33431 (“Borrower”) hereby promises to pay to the order of FIFTH
THIRD BANK, an Ohio banking corporation, for itself and as agent for any affiliate of Fifth Third Bancorp (together with its
successors and assigns, the “Lender”) the principal amount of Four Hundred Thirty Thousand and 00/100 Dollars ($430,000.00),
with interest at the Interest Rate (as defined below) and all other Obligations on or before April 15, 2017 (“Maturity Date”)
pursuant to the Loan Agreement (as defined below).


 


Lender and Borrower
have entered into that certain Master Loan and Security Agreement dated as of March 26, 2012 (the “Loan Agreement”),
pursuant to which Lender has agreed to make the Loan to Borrower. The Obligations of Borrower are secured by the Collateral as
provided in the Loan Agreement and this Note shall be subject to the terms and conditions of the Loan Agreement. Capitalized terms
used herein and not otherwise defined shall have the meaning attributed thereto in the Loan Agreement. This Note relates to the
Equipment described on Schedule A hereto.


 


Borrower agrees that
Lender may insert the date(s) of “Advance” (above) after Borrower executes this Promissory Note as the date(s) on which
the proceeds of this Note are disbursed by Lender.


 


As used herein, “Interest
Rate” shall mean the percentage per annum equal to six and 66/100 percent (6.66%); provided, however, that (A) such
Interest Rate is based on an interest rate swap rate for a term approximating the weighted average life of this Note as quoted
in the Bloomberg SWAP Rate report as of the date of this Note and (B) such Interest Rate may be adjusted by Lender based upon a
corresponding increase in the interest rate swap rate quoted in such Release as in effect on the date of the Advance. Lender will
provide Borrower with written notice of any such adjustment. Interest shall be computed on the basis of a year of 360 days consisting
of twelve 30-day months, and shall accrue on the outstanding principal amount hereunder from and including the date each Advance
is made to but excluding the date the entire principal amount hereunder is paid in full.


 


Lender may charge,
and Borrower agrees to pay on the Advance date, a note processing fee in the amount of $400.00. Lender may deduct the amount of
the note processing fee from the proceeds of this Note or debit any deposit account of Borrower with Lender to collect the note
processing fee.


 


Except as otherwise
provided in the Loan Agreement, principal and interest due hereunder shall be payable as follows:


 


Principal and interest
shall be payable in 60 equal monthly installments, each on the 15th day of each calendar month, of $8,444.98 commencing on the
15th day of May, 2012, with the entire unpaid principal amount hereof, together with all accrued and unpaid interest, charges,
fees or other Advances, if any, due on the Maturity Date. Interest that accrues from the date of each Advance through but not including
the above payment commencement date shall be payable in arrears on the fifteenth day of the calendar month following the date of
Advance.


 



    	   



    	 



    



 


From and after the
third (3rd) anniversary of the date the Loan is made hereunder, Borrower may at any time prepay the Loan in whole but not in part
together with accrued interest thereon and other Obligations.


 


Upon the occurrence
of an Event of Default, Lender shall have all the rights and remedies specified in the Loan Agreement.


 


Borrower waives presentment
for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice of protest of this Note, and all other
notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note.


 


This Note shall be
governed by and construed in accordance with the laws of the State of Ohio. Any judicial proceeding arising out of or relating
to this Note may be brought in any court of competent jurisdiction in Hamilton County, Ohio and each of the parties hereto (i)
accepts the nonexclusive jurisdiction of such courts and any related appellate court and agrees to be bound by any judgment rendered
by any such court in connection with any such proceeding and (ii) waives any objection it may now or hereafter have as to the venue
of any such proceeding brought in such court or that such court is an inconvenient forum. EACH OF THE BORROWER AND LENDER HEREBY
WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING ARISING OUT OF OR IN ANY WAY RELATING TO THIS NOTE.


 


All notices delivered
hereunder shall be made and delivered in accordance with the terms of the Loan Agreement.


 


Borrower acknowledges
and agrees that time is of the essence with respect to its performance under this Note. Any failure of Lender to require strict
performance by Borrower or any waiver by Lender of any provision herein shall not be construed as a consent or waiver of any provision
of this Note. This Note shall be binding upon, and inure to the benefit of, the parties hereto, their permitted successors and
assigns; provided, however that Borrower may not assign or transfer any of its rights, interest or obligations hereunder without
the prior written consent of Lender.


 


Notwithstanding any
provision to the contrary in this Note, in no event shall the interest rate charged on this Note exceed the maximum rate of interest
permitted under applicable state and/or federal usury law. Any payment of interest that would be deemed unlawful under applicable
law for any reason shall be deemed received on account of, and will automatically be applied to reduce, the principal sum outstanding
and any other sums (other than interest) due and payable to Lender under this Note, and the provisions hereof shall be deemed amended
to provide for the highest rate of interest permitted under applicable law.


 


Any provision of this
Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
shall not invalidate or render unenforceable such provision in any other jurisdiction. Captions are intended for convenience or
reference only, and shall not be construed to define, limit or describe the scope or intent of any provisions hereof.


 


{Remainder of page
intentionally left blank. Signature page follows.}


 






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IN WITNESS WHEREOF,
the Borrower has executed this Note as of the 26th day of March, 2012.


 





	 	BORROWER:
	 	THE WOOD ENERGY GROUP, INC.
	 	 	 
	 	 	 
	 	By:	 /s/ Jon Ryan
	 	Name:	 Jon Ryan
	 	Title: 	President




  






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SCHEDULE
A


TO


PROMISSORY
NOTE DATED March 26, 2012


 


DESCRIPTION
OF EQUIPMENT


 


 


	Manuf. and/or Vendor Name & Invoice No.	
        Description of Equipment

         
	Quantity	
        Per Item Cost

        (If applicable)
	Sales Tax, Delivery, Installation & Other Charges	
        Invoice

        Total

	
        Grinder Crusher Screen, Inc.

        030812-4
	
        Used Diamond Z7000 Horizontal Grinder Model
        DZH7000 with 2” and 3” hex screens, remote control and new cross magnet

        s/n: 7001
	1	 	 	$419,000.00
	
        Rule Steel Tanks, Inc.

        0009029-IN
	69” 5x7 Rectangular Screen	2	$1,480.44	$284.74	$3,245.62
	
        Rich’s Towing & Service, Inc.

        03272012
	Freight	 	 	$8,200.00	$8,200.00
	 	 	 	 	 	 
	Total:	 	 	 	 	$430,445.62
	Total Amount Funded:	 	 	 	 	
         

        $430,000.00