Document:

PROMISSORY
      NOTE

     

    
      	U.S.$640,000.00	 	
               Dated
                as of June 28, 2007

            
	 	 	
               Los
                Angeles,
                California

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, Allegro Biodiesel Corporation, a Delaware corporation
      (“Borrower”),
      promises to pay to the order of The Bel Fixed Income Portfolio (a segregated
      portfolio of Alpha Asset Managers Limited) (together with its successors and
      assigns, “Lender”),
      the
      principal sum of Six Hundred Forty Thousand and 00/100 United States Dollars
      (U.S.$640,000.00), with interest on the unpaid principal balance as provided
      herein, until paid, at the Interest Rate provided herein. 

     

    WHEREAS,
      Borrower has requested that Lender make available to Borrower a loan in the
      principal amount of U.S.$640,000.00 (the “Loan”);
      

     

    WHEREAS,
      Lender is willing to make the Loan, which this Note evidences, upon the terms
      and conditions set forth herein;

     

    NOW,
      THEREFORE, for and in consideration of the foregoing, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby agree as follows:

     

    1. Certain
      Defined Terms.
      

     

    “Administration
      Fee”
means
      a
      one-time administration fee in the amount of three thousand dollars ($3,000)
      payable by Borrower to Lender on the earlier of (i) the Maturity Date (as
      defined herein) or (ii) the date upon which Borrower prepays this Note in whole
      in accordance with Section
      3(b).

     

    “Governmental
      Authority”
      means
      any
      foreign, domestic, federal, territorial, state or local governmental authority,
      quasi-governmental authority, instrumentality, court, legislative body,
      government or self-regulatory organization, commission, court, tribunal or
      organization or any regulatory, administrative or other agency, or any political
      or other subdivision, department or branch of any of the foregoing.

     

    “Loan
      Documents”
means,
      collectively, this Note, and that certain Assignment of Multiple Indebtedness
      Mortgage, dated as of the date hereof, by Borrower in favor of Lender, as the
      same may be amended, restated or otherwise modified from time to time (each
      of
      the foregoing, a “Loan
      Document”).

     

    “Liens”
means
      any mortgage or deed of trust, pledge, hypothecation, collateral assignment,
      assignment, deposit arrangement, lien, charge, claim, security interest,
      easement or encumbrance, adverse claim or preference, priority or other security
      agreement or preferential arrangement of any kind or nature whatsoever
      (including any lease or title retention agreement, any financing lease having
      substantially the same economic effect as any of the foregoing, and the filing
      of, or agreement to give, any financing statement perfecting a security interest
      under the State of California Uniform Commercial Code or comparable law of
      any
      jurisdiction).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Talen’s
      Loan Documents”
means
      collectively (a) that certain Loan Agreement, dated as of June 26, 2007 entered
      into by Talen’s Marine and Fuel, Inc. (“Talen’s”),
      Borrower, and Talen Landing II, LLC (“Talen
      II”);
      (b)
      that certain Promissory Note, dated as of June 26, 2007, executed by Talen’s in
      favor of Borrower; (c) that certain Guaranty Agreement, dated as of June 26,
      2007, entered into by Talen’s, Borrower, and C. Raymond Talen; and (d) that
      certain Multiple Indebtedness Mortgage, dated as of June 26, 2007, executed
      by
      Talen II in favor of Borrower, as each of the foregoing may be amended, restated
      or otherwise modified from time to time. 

     

    2. Rate
      of Interest.
      The
      outstanding principal balance of this Note shall bear interest at 12.0% (twelve
      percent) per annum, calculated on the basis of a 360 day year (the “Interest
      Rate”)
      for
      the actual number of days elapsed during any month or other accrual
      period.

     

    3. Payment
      and Prepayment.
      

     

    (a) Payment.
      The
      entire principal balance of this Note, plus
      any
      accrued and unpaid interest thereon and the Administration Fee shall be due
      and
      payable in full on December 28, 2007 (the “Maturity
      Date”).

     

    (b) Prepayments.
      Borrower may prepay this Note in whole or part at any time (the “Prepayment
      Date”)
      with
      funds from any source at the prepayment price equal to the portion of the then
      outstanding principal amount of this Note that Borrower desires to prepay,
      plus
      all
      accrued and unpaid interest through and including the applicable Prepayment
      Date
      and, if this Note is prepaid in whole on the Prepayment Date, the Administration
      Fee.

     

    (c) Application
      of Payments.
      All
      payments made pursuant to the terms of this Note shall be applied to amounts
      then due and payable in the following order: (i) to interest accrued on this
      Note; (ii) to the principal amount of this Note; and (iii) to the Administration
      Fee.

     

    (d) Termination.
      This
      Note shall terminate at such time as the Note has been fully and indefeasibly
      paid in cash. 

     

    4. Default
      Rate.
      Notwithstanding Section
      2,
      after
      the occurrence of any Event of Default, and for so long as such Event of Default
      continues, this Note shall bear interest until paid in full at the rate of
      two
      percent (2%) per annum in excess of the monthly Interest Rate. 

     

    5. Computation
      of Interest.
      Notwithstanding
      anything to the contrary set forth in Section
      2
      or
Section
      4,
      if a
      court of competent jurisdiction determines in a final order that the rate of
      interest payable hereunder exceeds the highest rate of interest permissible
      under law (the “Maximum
      Lawful Rate”),
      then
      so long as the Maximum Lawful Rate would be so exceeded, the rate of interest
      payable hereunder shall be equal to the Maximum Lawful Rate; provided,
      however,
      that if
      at any time thereafter the rate of interest payable hereunder is less than
      the
      Maximum Lawful Rate, Borrower shall continue to pay interest hereunder at the
      Maximum Lawful Rate until such time as the total interest received by Lender
      is
      equal to the total interest which would have been received had the interest
      rate
      payable hereunder been (but for the operation of this paragraph) the interest
      rate payable since the Maturity Date as otherwise provided in this Agreement.
      Thereafter, interest hereunder shall be paid at the rate of interest and in
      the
      manner otherwise provided in this Note, unless and until the rate of interest
      again exceeds the Maximum Lawful Rate, and at that time this paragraph shall
      again apply. In no event shall the total interest received by Lender pursuant
      to
      the terms hereof exceed the amount which Lender could lawfully have received
      had
      the interest due hereunder been calculated for the term hereof following the
      Maturity Date at the Maximum Lawful Rate. If the Maximum Lawful Rate is
      calculated pursuant to this paragraph, such interest shall be calculated at
      a
      daily rate equal to the Maximum Lawful Rate divided by the number of days in
      the
      year in which such calculation is made. If, notwithstanding the provisions
      of
      this Section
      5,
      a court
      of competent jurisdiction shall finally determine that Lender has received
      interest hereunder in excess of the Maximum Lawful Rate, Lender shall, to the
      extent permitted by applicable law, promptly apply such excess interest to
      amounts then due and payable in the following order: (i) to interest accrued
      on
      this Note; and (ii) to the principal amount of this Note, and thereafter shall
      refund any excess to Borrower or as a court of competent jurisdiction may
      otherwise order.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    6. Manner
      of Payment.
      All
      payments by Borrower on this Note shall be made in immediately available funds
      delivered to Lender by wire transfer to such accounts at such banks as Lender
      may from time to time designate. 

     

    7. Grant
      of Security.
      To
      secure the prompt and complete payment of this Note, Borrower hereby
      collaterally assigns and grants to Lender a first-priority security interest
      in,
      and a first-priority Lien on and against, all of Borrower’s right, title and
      interest in and to the Talen’s Loan Documents (collectively, the “Collateral”).
      Borrower authorizes Lender to file a financing statement and amendments thereto,
      disclosing the security interest granted to Lender under this Note without
      such
      Borrower’s signature appearing thereon.

     

    8. Representations,
      Warranties and Covenants of Borrower.
      

     

    (a) Borrower
      has the legal right to own, pledge, mortgage or otherwise encumber the
      Collateral.

     

    (b) The
      execution, delivery and performance by Borrower of the Loan Documents and the
      creation of any and all liens provided for therein (i) are within Borrower’s
      power and capacity, (ii) have been duly authorized by all necessary corporate
      action, and (iii)  do not result in the creation or imposition of any Lien
      upon any of the Collateral other than any in favor of Lender pursuant to the
      Loan Documents. Each of the Loan Documents has been duly executed and delivered
      by Borrower and each such Loan Document constitutes a legal, valid and binding
      obligation of Borrower enforceable against Borrower in accordance with its
      terms.

     

    (c) At
      any
      time and from time to time, upon the written request of Lender and at the sole
      expense of Borrower, Borrower shall promptly and duly execute and deliver any
      and all such further instruments and documents and take such further actions
      as
      Lender may deem reasonably necessary or desirable to obtain the full benefits
      of
Section
      7
      hereof
      and of the rights and powers therein granted.

     

    
      
         

      

      
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    9. Events
      of Default; Acceleration.
      Upon
      and at any time following the occurrence of any Event of Default, then, at
      the
      option of Lender, upon written notice to Borrower, the entire principal amount
      and all interest accrued and outstanding hereunder shall at once become due
      and
      payable, and Lender may exercise any and all rights and remedies of Lender
      hereunder or pursuant to applicable law. Lender may so accelerate such
      obligations and exercise such remedies at any time after the occurrence of
      any
      Event of Default, regardless of any prior forbearance. The following are
“Events
      of Default”:

     

    (a) Principal
      and Interest Payments.
      Borrower defaults in the payment of any interest on or principal of this Note
      is
      not paid in full, after the same becomes due and payable.

     

    (b) Representations
      and Warranties.
      Any
      representation and warranty contained in this Note or any of the Loan Documents
      proves to have been incorrect in any material respect as of the date
      thereof.

     

    (c) Other
      Debt to Other Lenders.
      Borrower defaults in the payment of any amounts due to anyone other than the
      Lender, or in the observance or performance of any of the covenants or
      agreements contained in any credit agreements, notes, leases, collateral or
      other documents relating to any debt of Borrower to anyone other than Lender,
      in
      each case, in respect of debt in excess of $250,000.00, and any cure period
      applicable to such default has elapsed.

     

    (d) Involuntary
      Bankruptcy or Receivership Proceedings.
      A
      receiver, conservator, liquidator or trustee of Borrower is appointed by order
      or decree of any court or agency or supervisory authority having jurisdiction;
      or an order of relief is entered against Borrower under the Federal Bankruptcy
      Code; or the Borrower is adjudicated bankrupt or insolvent; or a petition is
      filed against Borrower under any state, reorganization, arrangement, insolvency,
      readjustment of debt, dissolution, liquidation or receivership law of any
      jurisdiction, whether now or hereafter in effect, and such petition is not
      dismissed within 60 days.

     

    (e) Voluntary
      Petitions.
      Borrower files a case under the Federal Bankruptcy Code or seeks relief under
      any provision of any bankruptcy, reorganization, arrangement, insolvency,
      readjustment of debt, dissolution or liquidation law of any jurisdiction,
      whether now or hereafter in effect, or consents to the filing of any case or
      petition against it under any such law.

     

    (f) Assignment
      for Benefit of Creditors.
      Borrower makes an assignment for the benefit of its creditors, or admits in
      writing its inability to pay its debts generally as they become due, or consents
      to the appointment of a receiver, trustee or liquidator of Borrower or of all
      or
      any of its property.

     

    10. Full
      Recourse.
      Notwithstanding any provision of the Loan Documents to the contrary, Borrower
      shall be fully and personally liable for the payment and performance of all
      obligations under this Note.

     

    11. Applicable
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of California. Borrower and Lender each hereby consent and agree that the state
      or federal courts located in Los Angeles County, City of Los Angeles, California
      shall have exclusive jurisdiction to hear and determine any claims or disputes
      between or among any of the parties hereto pertaining to this Note or any of
      the
      other Loan Documents or to any matter arising out of or relating to this Note
      or
      any of the other Loan Documents, provided,
      however, that each of the parties hereto acknowledges that any appeals from
      any
      of such courts may have to be heard by a court located outside of Los Angeles
      County, City of Los Angeles, California, and, provided,
      further, however, that nothing in this Note shall be deemed or operate to
      preclude Lender from bringing suit to realize on the Collateral, or to enforce
      a
      judgment or other court order in favor of Lender. Borrower and Lender each
      expressly submit and consent in advance to such jurisdiction in any action
      or
      suit commenced in any such court, and Borrower and Lender each hereby waive
      any
      objection which Borrower or Lender may have based upon lack of personal
      jurisdiction, improper venue or forum non conveniens and hereby consents to
      the
      granting of such legal or equitable relief as is deemed appropriate by such
      court. 

     

    
      
         

      

      
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    13. Registration.
      Lender
      shall maintain a copy of this Note and delivered to and accepted by it and
      a
      register (the “Register”)
      for
      the recordation of the names and addresses of each Lender under the Loan, the
      principal amount of the Loan owing to such Lender from time to time and whether
      such Lender is an original Lender or the assignee of another Lender pursuant
      to
      an assignment agreement. The Register shall include an account for each Lender,
      in which accounts (taken together) shall be recorded (i) the effective date
      and amount of each assignment agreement delivered to and accepted by it and
      the
      parties thereto, (ii) the amount of any principal or interest or fees due
      and payable or to become due and payable from Borrower to each Lender hereunder,
      and (iii) the amount of any sum received by Lender from Borrower hereunder
      and each Lender’s share thereof. The entries in the Register shall be conclusive
      and binding for all purposes, absent manifest error, and Borrower and Lender
      may
      treat each entity whose name is recorded in the Register as a Lender hereunder
      for all purposes hereof. The Register shall be available for inspection by
      any
      Lender and Borrower at any reasonable time and from time to time upon reasonable
      prior notice.

     

    *
      * *

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the undersigned have executed this Note as of the date first
      written above.

     

    
      	ALLEGRO BIODIESEL
              CORPORATION	 	 	 
	 	 	 	 
	 	 	 	 
	By:
              /s/ W.
              Bruce Comer, III 	 	 	 
	
              
                

              
Name: W. Bruce Comer, III	 	 	
            
	Title: Chief Executive
              Officer	 	 	
            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              By: ALPHA ASSET MANAGERS LIMITED

                       for
                and on behalf of

                       THE BEL
                FIXED INCOME PORTFOLIO

            	 	 	 
	 	 	 	 
	 	 	 	 
	By:
              /s/ Oskar P. Lewnowski 	 	 	 
	
              
                

              
Name: Oskar P. Lewnowski	 	 
              	
            
	Title: Director	 	 	
            

    

     

    
      
         

      

      
        
          Signature
            page to

          Allegro
            NoteLOAN
      AGREEMENT

    

    This
      LOAN
      AGREEMENT (“Agreement”), dated this 26th
      day of
      June, 2007, is made among TALEN’S MARINE AND FUEL, INC., a Louisiana corporation
      (“Borrower”), ALLEGRO BIODIESEL CORPORATION (“Lender”), C. RAYMOND TALEN
      (“Guarantor”) and TALEN LANDING II, INC., a Louisiana corporation (“Owner”) (the
      Borrower, Guarantor and Owner are collectively referred to as the “Appearers”
and individually as an “Appearer”) who agree as follows:

    

    A. THE
      LOAN. Subject
      to and upon the terms and conditions contained in this Agreement, and relying
      on
      the representations and warranties contained in this Agreement, the Lender
      agrees to make available to the Borrower a ninety (90) day term loan (the
“Loan”) in the maximum principal amount equal to $640,000.00 (the “Maximum
      Amount”). The Loan is represented by a promissory note in the principal amount
      of $640,000.00 payable to the order of the Lender. Principal and all accrued
      interest shall be payable at maturity of the Loan as set forth in the Note
      evidencing the Loan. Interest on the Loan shall be ten percent (10%) per annum
      and shall otherwise accrue as set forth in the Note evidencing the Loan. Such
      Note and the Loan shall mature on the earlier of September 24, 2007 or the
      consummation of the transaction contemplated by that Stock Purchase Agreement
      executed among Lender, the shareholders of Borrower and Owner, dated
      contemporaneously herewith (the “Stock Purchase Agreement”).

    

    B. USE
      OF PROCEEDS.
      (1) The
      proceeds from the Loan will be used by the Borrower to fund working capital.
      Each of the Appearers certifies, warrants and covenants that each of the uses
      described above is of direct benefit to each Appearer.

    

    C. SECURITY.
      The
      Loan
      shall be secured by the following (the “Collateral Documents”):

    

    (a) Multiple
      Indebtedness Mortgage executed by the Owner granting a first priority mortgage
      and security interest in all of the Owner’s right, title and interest in and to
      the property described on Exhibit
      A.

    

    (b) Guaranty
      Agreement executed by the Guarantor guaranteeing repayment of the Loan and
      other
      obligations of the Borrower related to the Loan.

    

    D. REPRESENTATIONS
      AND WARRANTIES.
      Appearers represent and warrant to Lender that:

    

    
      	 	
              (1)

            	
              Organization
                and Authorization of Borrower. Borrower is
                a Louisiana corporation which is duly organized, validly existing
                and in
                good standing under Louisiana law. Borrower’s execution, delivery and
                performance of this Agreement and all other documents delivered to
                Lender
                have been duly authorized and do not violate Borrower’s articles of
                incorporation, by-laws (or other governing documents), material contracts
                or any applicable law or
                regulations.

            

    

    

    
      	 	
              (2)

            	
              Organization
                and Authorization of Owner.
                Owner is a Louisiana corporation which is duly organized, validly
                existing
                and in good standing under Louisiana law. Owner’s execution, delivery and
                performance of this Agreement and all other documents delivered to
                Lender
                have been duly authorized and do not violate Owner’s articles of
                incorporation, by-laws (or other governing documents), material contracts
                or any applicable law or
                regulations.

            

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	 	
              (3)

            	
              Litigation.
                There is no material pending or threatened litigation, arbitration
                or
                administrative proceeding, investigation or other action of any nature
                against or affecting any Appearer that could adversely affect any
                Appearer’s business or assets.

            

    

    

    
      	 	
              (4)

            	
              Information.
                All information, reports, papers and data given to Lender by any
                of the
                Appearers in connection with this Agreement are accurate and complete
                in
                all material respects, and no such information, reports, papers or
                data
                contains any material misstatement of fact or fails to state a fact
                necessary to make the statement contained therein not materially
                misleading.

            

    

    

    
      	 	
              (5)

            	
              Solvency.
                Borrower and each other Appearer is solvent and has the ability to
                pay its
                debts when and as due.

            

    

    

    
      	 	
              (6)

            	
              Taxes.
                Borrower and each other Appearer has filed all tax returns and reports
                required to be filed and has paid all taxes, assessments, fees and
                other
                governmental charges levied upon it or upon its property or income
                which
                are due and payable, including interest and penalties, or has provided
                adequate reserves for the payment
                thereof.

            

    

    

    
      	 	
              (7)

            	
              Regulation.
                Borrower is not engaged in the generation, transmission or distribution
                and sale of electric power, the provision of telephone service to
                others,
                or other business activities which would subject Borrower to regulation
                as
                a utility or common carrier under any federal or state laws or
                regulations. Borrower is not an “investment company” within the meaning of
                the Investment Company Act of 1940, as amended. None of the Loan
                proceeds
                will be used for the purpose of purchasing or carrying any margin
                stock,
                or for the purpose of reducing or retiring any indebtedness which
                was
                originally incurred to purchase or carry a margin stock. Borrower
                is not
                engaged principally, or as one of Borrower’s important activities, in the
                business of extending credit for the purpose of purchasing or carrying
                margin stocks.

            

    

    

    
      	 	
              (8)

            	
              Review
                of Documents; Binding Obligations.
                The Appearers have reviewed this Agreement, the Note and the Collateral
                Documents with counsel for the Appearers and have had the opportunity
                to
                discuss the provisions hereof and thereof with the Lender prior to
                execution. This Agreement, the Note and the Collateral Documents
                constitute valid and binding obligations of the Appearers who are
                parties
                thereto, enforceable in accordance with their terms (except that
                enforcement may be subject to any applicable bankruptcy, insolvency
                or
                similar laws generally affecting the enforcement of creditors’ rights).
                

            

    

    

    
      	 	
              (9)

            	
              No
                Consent.
                The Appearers’ execution, delivery and performance of this Agreement, the
                Note and the Collateral Documents to which each is a party do not
                require
                the consent or approval of any other person, entity or authority,
                including without limitation any regulatory authority or governmental
                body
                of the United States or any state thereof or any political subdivision
                of
                the United States or any state thereof, except for such consents
                that have
                been duly and validly obtained on or prior to the date hereof and
                remain
                in full force and effect.

            

    

     

    
      
         

      

      
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              (10)

            	
              Financial
                Condition.
                All financial statements of the Borrower, the Appearers and any affiliates
                delivered to Lender fairly and accurately present the financial condition
                of the parties for whom such statements are submitted and the financial
                statements of the Borrower, the Appearers and any affiliates have
                been
                prepared in accordance with generally accepted accounting principles
                consistently applied throughout the periods involved, and there are
                no
                contingent liabilities not disclosed thereby which would adversely
                affect
                the financial condition of the Borrower or other Appearers. Since
                the
                close of the period covered by the latest financial statements delivered
                to Lender with respect to the Appearers and any affiliates, there
                has been
                no material adverse change in the assets, liabilities, or financial
                condition of any Appearer or any affiliates. No event has occurred
                (including, without limitation, any litigation or administrative
                proceedings) and no condition exists or, to the knowledge of the
                Borrower,
                the Appearers and any affiliates, is threatened, which (i) might
                render
                any of the Appearers or any affiliates unable to perform its obligations
                under this Agreement, the Note or the Collateral Documents to which
                each
                is a party, or (ii) would constitute a Default hereunder, or (iii)
                might
                adversely affect the financial condition of any Appearer or any affiliates
                or the validity or priority of the lien of the Collateral
                Documents.

            

    

    

    
      	 	
              (11)

            	
              Environmental
                Matters.
                (a) Except as disclosed to Lender, no friable asbestos, or any substance
                containing asbestos deemed hazardous by federal or state regulations
                on
                the date of this Agreement, has been installed in the property affected
                by
                the Collateral Documents (the “Property”). The Property and the Borrower
                are not in material violation of or subject to any existing, pending,
                or
                threatened investigation or inquiry by any governmental authority
                or to
                any remedial obligations under any applicable laws pertaining to
                health or
                the environment (hereinafter sometimes collectively called “Applicable
                Environmental Laws”), including without limitation the Comprehensive
                Environmental Response, Compensation, and Liability Act of 1980,
                as
                amended by the Superfund Amendments and Reauthorization Act of 1986
                (as
                amended, hereinafter called “CERCLA”), the Resource Conservation and
                Recovery Act of 1976, as amended by the Used Oil Recycling Act of
                1980,
                the Solid Waste Disposal Act Amendments of 1980, and the Hazardous
                and
                Solid Waste Amendments of 1984 (as amended, hereinafter called “RCRA”),
                and this representation and warranty would continue to be true and
                correct
                following disclosure to the applicable governmental authorities of
                all
                relevant facts, conditions and circumstances, if any, pertaining
                to the
                Property and known to any Appearer. The Appearers have not obtained
                and
                are not required to obtain any permits, licenses or similar authorizations
                to construct, occupy, operate or use any buildings, improvements,
                fixtures
                and equipment forming a part of the Property by reason of any Applicable
                Environmental Laws, other than storm water discharge and other permits
                that may be ordinarily required in connection with the operation
                of office
                buildings and shopping centers. The Appearers shall give all such
                notices
                and maintain such permits as may be required under Applicable
                Environmental Laws. No hazardous substances or solid wastes have
                been
                disposed of or otherwise released on or to the Property, and the
                use which
                the any Appearer makes and intends to make of the Property will not
                result
                in the disposal or other release of any hazardous substance or solid
                waste
                on or to the Property, other than immaterial releases of materials
                in the
                ordinary course of construction of tenant improvements and the operation
                of office and retail facilities on the Property, which in each case
                does
                not cause a Material Release of materials on or about the Property.
                The
                terms “hazardous substance” and “release” as used in this Agreement shall
                have the meanings specified in CERCLA, and the terms “solid waste” and
                “disposal” (or “disposed”) shall have the meanings specified in RCRA;
                provided, in the event that the laws of the State of Louisiana establish
                a
                meaning for “hazardous substance,” “release,” “solid waste,” or “disposal”
                which is broader than that specified in either CERCLA or RCRA, such
                broader meaning shall apply. The term “Material Release” shall mean a
                release (or series of releases) of material which are required to
                be
                removed, encapsulated or otherwise remediated under Applicable
                Environmental Laws, the cost of which compliance, in the aggregate,
                exceeds $10,000.

            

    

     

    
      
         

      

      
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              (12)

            	
              Governmental
                Requirements.
                The Property is in compliance with all current governmental requirements
                affecting the Property, including, without limitation, all current
                coastal
                zone protection, zoning and land use regulations, building codes
                and all
                restrictions and requirements imposed by applicable governmental
                authorities with respect to the construction of any improvements
                on the
                Property and the use and contemplated use of the
                Property.

            

    

    

    
      	 	
              (13)

            	
              Continuing
                Accuracy.
                All of the representations and warranties contained in this Article
                or
                elsewhere in this Agreement shall be true through and until the later
                of
                the date on which all obligations of Borrower under this Agreement,
                the
                Note and the Collateral Documents and any other documents executed
                in
                connection herewith and therewith are fully satisfied, or Borrower
                shall
                promptly notify Lender of any event which would render any of said
                representations and warranties untrue or
                misleading.

            

    

    

    
      	
              E.

            	
              COVENANTS.
                From the date of this Agreement and so long as the Loan shall be
                outstanding, unless compliance shall have been waived in writing
                by
                Lender:

            

    

    

    
      	 	
              (1)

            	
              Compliance
                with Tax and other Laws.
                Each Appearer shall comply with all laws that are applicable to the
                Appearer’s business activities, including, without limitation, all laws
                regarding (i) the collection, payment and deposit of employees’ income,
                unemployment, Social Security, sales and excise taxes; (ii) the filing
                of
                returns and payment of taxes; (iii) pension liabilities including
                ERISA
                requirements; (iv) environmental protection; (v) occupational safety
                and
                health; and (vi) all requirements of state, federal and other governmental
                regulatory bodies. 

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	 	
              (2)

            	
              Notice
                of Default.
                Each Appearer shall notify Lender immediately upon becoming aware
                of the
                occurrence of any event constituting, or which with the passage of
                time or
                the giving of notice, could constitute, a
                Default.

            

    

     

    
      	 	
              (3)

            	
              Mergers,
                etc.
                Without the prior written consent of Lender no Appearer shall (i)
                be a
                party to a merger or consolidation, (ii) sell or lease all or
                substantially all of its assets or (iii) acquire all or substantially
                all
                of the assets of another entity. No Appearer will permit any material
                changes to be made in the character of its business as carried on
                at the
                original date of this Agreement.

            

    

     

    
      	 	
              (4)

            	
              Indebtedness
                and Liens.
                No
                Appearer shall mortgage or encumber any of the Property or suffer
                any
                liens to exist on any of the Property except those in favor of the
                Lender
                without the prior written consent of
                Lender.

            

    

    

    
      	 	
              (5)

            	
              Performance
                of Obligations.
                The Borrower will repay the Loan according to the reading, tenor
                and
                effect of the Note and this Agreement. The Appearers will do and
                perform
                every act required of it by this Agreement, the Note or the Collateral
                Documents to which each is a party at the time or times and in the
                manner
                specified. 

            

    

    

    
      	 	
              (6)

            	
              Financial
                Statements and Reports.
                Intentionally left blank.

            

    

    

    
      	 	
              (7)

            	
              Reimbursement
                of Expenses.
                The Borrower will, upon request promptly reimburse the Lender for
                all
                amounts expended, advanced or incurred by the Lender to satisfy any
                obligation of the Borrower under this Agreement or any other agreement,
                document or instrument executed and delivered in connection herewith,
                or
                to protect the Property or business of the Borrower or to collect
                the
                indebtedness addressed hereby, or to enforce the rights of the Lender
                under this Agreement or any other agreement, document or instrument
                executed and delivered in connection herewith, which amounts will
                include
                all court costs, attorneys’ fees, fees of auditors and accountants, and
                investigation expenses reasonably incurred by the Lender in connection
                with any such matters, together with interest at the then highest
                interest
                rate set forth in the Note on each such amount from the date that
                the same
                is expended, advanced or incurred by the Lender until the date of
                reimbursement to the Lender. 

            

    

    

    
      	 	
              (8)

            	
              Insurance.
                (a) The Borrower shall procure and maintain for the benefit of the
                Lender, or cause to be maintained original paid-up insurance policies
                from
                companies licensed in the state where the Property is located and
                having a
                Best’s rating of A or higher, in amounts, in form and substance, and with
                expiration dates acceptable to the Lender and containing a
                non-contributory standard mortgagee clause or its equivalent in a
                form
                satisfactory to the Lender, or the statutory mortgagee clause, if
                any,
                required in the state where the Property is located, or a mortgagee’s loss
                payable endorsement, in favor of the Lender, providing the following
                types
                of insurance on the Property:

            

    

    

    (i)  Multi-Peril
      Hazard Insurance.
      For the
      Property (to the extent of any improvements thereof) multi-peril hazard
      insurance, in each case affording insurance against loss or damage by fire,
      lightning, explosion, earthquake, collapse, theft, sprinkler leakage, vandalism
      and malicious mischief and such other perils as are included in so-called
“all-risks” or “extended coverage” and against such other insurable perils as,
      under good insurance practices, from time to time are insured against for
      properties of similar character and location; such insurance to be not less
      than
      100% of the full replacement costs of the improvements without deduction for
      depreciation; said policy to contain replacement costs and stipulated value
      endorsements.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (ii)
      Comprehensive
      General Liability Insurance.
      Comprehensive public liability insurance with respect to the Property and the
      operations related thereto, whether conducted on or off the Property, against
      liability for personal injury (including bodily injury and death) and property
      damage, of not less than $1,000,000 per occurrence and $3,000,000 in the
      aggregate; such comprehensive public liability insurance, if required by the
      Lender, to specifically include but not be limited to water damage liability,
      products liability, motor vehicle liability for all owned and non-owned
      vehicles, including rented and leased vehicles, and contractual
      indemnification.

    

    (iii)  Worker’s
      Compensation and General Liability Insurance.
      Worker’s compensation and general liability insurance against loss, damage or
      injury to employees, agents, representatives, invitees or guests of the relevant
      Appearer (which owns the relevant Property) or of any contractor or
      subcontractor or lessee or operator, or insurance against loss, damage or injury
      caused by any employees, agents, representatives, invitees or guests of the
      Appearer or of any contractor or subcontractor or lessee or operator, in minimum
      amounts of $1,000,000 per occurrence and $2,000,000 in the
      aggregate.

    

    (iv)  Other
      Insurance.
      Such
      other insurance on the Property or any replacements or substitutions therefor
      and in any such amounts as may from time to time be reasonably required by
      Lender against other insurable casualties which at the time are commonly insured
      against in the case of premises similarly situated, due regard given to the
      height and type of the improvements on the Property, their construction,
      location, use and occupancy, or any replacements or substitutions
      therefor.

    

    (b) All
      of
      the foregoing policies shall contain an agreement by the insurer not to cancel
      or amend the policies without giving the Lender at least 30 days’ prior written
      notice of its intention to do so.

    

    (c) Borrower
      shall deliver original or certified policies (or insurance certificates from
      Borrower’s insurance agent) to Lender, and Borrower shall deliver original or
      certified renewal policies (or insurance certificates from Borrower’s insurance
      agent) with satisfactory evidence of payment not less than 15 days in advance
      of
      the expiration date of the existing policy or policies. In the event the
      Appearers should, for any reason whatsoever, fail to keep the Property or any
      part thereof so insured, or to keep said policies so payable, or fail to deliver
      to Lender the original or certified policies of insurance and the renewals
      thereof upon demand, then Lender, if it so elects, may itself have such
      insurance effected in such amounts and in such companies as it may deem proper
      and may pay the premiums therefor. The Borrower shall reimburse the Lender
      upon
      demand for the amount of premium paid, together with interest thereon at 15%
      per
      annum from date until paid. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (d) Borrower
      agrees to notify Lender immediately in writing of any material fire or other
      casualty to or accident involving the Property, whether or not such fire,
      casualty or accident is covered by insurance. Borrower further agrees to notify
      promptly Borrower’s insurance company and to submit an appropriate claim and
      proof of claim to the insurance company if the Property is damaged or destroyed
      by fire or other casualty.

    

    (e) The
      Borrower shall cause the proceeds from any policy or policies of insurance
      to be
      delivered to the Lender. If there is a fire or casualty loss which damages
      all
      or a portion of the improvements, then the insurance proceeds may, in the
      Lender’s sole discretion, be either made available to the Borrower to restore
      the improvements on such terms and conditions as the Lender shall require,
      or be
      applied to the payment of the Loan. If such insurance proceeds are not
      sufficient to pay the Loan in full, the Lender shall have a right to accelerate
      the maturity of the Loan and proceed against the Borrower and/or the remainder
      of the collateral securing the Loan; and if the proceeds exceed the amount
      necessary to pay the Loan in full, then such excess shall be paid to the
      Appearers.

    

    (f) If
      requested by Lender, the Borrower shall pay to the Lender, together with, at
      the
      same time as and in addition to the payment of principal and/or interest due
      on
      the Note, a pro rata portion of the property taxes, assessments, governmental
      charges, levies and insurance premiums relating to the collateral constituting
      the Property next to become due, as estimated by the Lender, so that the Lender
      will have sufficient funds on hand to pay such taxes, assessments, governmental
      charges, levies and premiums not less than 30 days prior to the due date
      thereof. 

    

    
      	 	
              (9)

            	
              Right
                of Inspection.
                The Appearers will permit any officer, employee or agent of the Lender
                to
                visit and inspect any of the Property, examine the books of record
                and
                accounts pertaining thereto, take copies and extracts therefrom,
                and
                discuss the affairs, finances and accounts of the Appearers with
                the
                Appearers’ officers (as applicable), accountants and auditors, all at such
                reasonable times and on reasonable notice and as often as the Lender
                may
                reasonably desire.

            

    

    

    
      	 	
              (10)

            	
              Notice
                of Certain Events.
                (a) The Borrower shall promptly notify the Lender if the Borrower
                learns
                of the occurrence of any event which constitutes a Default, together
                with
                a detailed statement of the steps being taken to cure the effect
                of such
                Default.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b) The
      Borrower shall promptly notify the Lender of the arising of any litigation
      or
      dispute threatened against or affecting the Borrower or the Property which,
      if
      adversely determined, would have a material adverse effect upon the financial
      condition or business of the Borrower or any other Appearer. In the event of
      such litigation, the Borrower will cause such proceedings to be vigorously
      contested in good faith and, in the event of any adverse ruling or decision,
      the
      Borrower shall cause to be prosecuted all allowable appeals. Lender may (but
      shall not be obligated to), following an Event of Default, commence, appear
      in,
      or defend any action or proceeding purporting to affect the Loan, or the
      respective rights and obligations of Lender and Borrower pursuant to this
      Agreement. Lender may (but shall not be obligated to) pay all necessary
      expenses, including reasonable attorneys’ fees and expenses incurred in
      connection with such proceedings or actions, which Borrower agrees to repay
      to
      Lender upon demand.

    

    
      	 	
              (11)

            	
              Indemnification.
                (a) The Borrower will indemnify the Lender and hold the Lender harmless
                from claims of brokers with whom the Borrower has dealt in the execution
                hereof or the consummation of the transactions contemplated hereby.
                The
                Lender will indemnify the Borrower from claims of brokers with whom
                the
                Lender has contracted in connection with the transactions contemplated
                hereby.

            

    

    

    (b) The
      Borrower will indemnify the Lender and hold the Lender harmless from any and
      all
      liabilities, obligations, losses, damages, penalties, claims, actions, suits,
      costs and expenses of whatever kind or nature which may be imposed on, incurred
      by or asserted at any time against the Lender in any way relating to, or arising
      in connection with, the use or occupancy of any of the collateral securing
      the
      Loan.

    

    (c) The
      Borrower agrees to indemnify and fully protect the Lender from any allegation
      or
      charge whatsoever of negligence, misfeasance, or nonfeasance of the Lender
      in
      whole or in part, pertaining to any defect in the Property, and particularly,
      any failure of the Lender or the Lender’s inspector, or any agent, officer,
      employee or representative of the Lender, to note any defect in materials or
      workmanship or of physical conditions or failure to comply with any plans,
      specifications, drawings, ordinances, statutes or other governmental
      requirements, or to call to the attention of any person whatsoever, or take
      any
      action, or to demand that any action be taken, with regard to any such defect
      or
      failure or lack of compliance.

    

    
      	 	
              (12)

            	
              Environmental
                Indemnity.
                (a) The Borrower shall defend, indemnify and hold Lender and its
                directors, officers, agents and employees harmless from and against
                all
                claims, demands, causes of action, liabilities, losses, costs and
                expenses
                (including, without limitation, costs of suit, reasonable attorneys’ fees
                and fees of expert witnesses) arising from or in connection with
                (i) the
                presence on or under the Property of any hazardous substances or
                solid
                wastes (as defined elsewhere in this Agreement), or any releases
                or
                discharges of any hazardous substances or solid wastes on, under
                or from
                the Property, (ii) any activity carried on or undertaken on or off
                the
                Property, whether prior to or during the term of this Agreement,
                and
                whether by an Appearer or any predecessor in title or any officers,
                employees, agents, contractors or subcontractors of an Appearer or
                any
                predecessor in title, or any third persons at any time occupying
                or
                present on the Property, in connection with the handling, use, generation,
                manufacture, treatment, removal, storage, decontamination, clean-up,
                transport or disposal of any hazardous substances or solid wastes
                at any
                time located or present on or under the Property, (iii) any breach
                of any
                representation, warranty or covenant under the terms of this Agreement,
                or
                (iv) any loss sustained due to any portion of the Property being
                considered “wetlands”, as such term is defined by applicable federal law.
                The foregoing indemnity shall further apply to any residual contamination
                on or under the Property, or affecting any natural resources, and
                to any
                contamination of any property or natural resources arising in connection
                with the generation, use, handling, storage, transport or disposal
                of any
                such hazardous substances or solid wastes, and irrespective of whether
                any
                of such activities were or will be undertaken in accordance with
                applicable laws, regulations, codes and ordinances; provided, that
                such
                indemnity shall not apply to any releases that occur following the
                date
                that the Property is transferred pursuant to a foreclosure or dation
                en
                paiement as a result of the actions of Lender or Lender’s transferee and
                assigns. Without prejudice to the survival of any other agreements
                of the
                Borrower hereunder, the provisions of this Section shall survive
                the final
                payment of the Loan and the termination of this Agreement and shall
                continue thereafter in full force and
                effect.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (b) The
      Appearers shall observe and materially comply with all laws, ordinances, orders,
      decrees, rules and regulations of all federal and state governments relating
      to
      environmental matters, including without limitation the removal from or under
      all Property constituting immovable property of any material amount of hazardous
      substances or solid wastes (as defined elsewhere in this Agreement). The
      Borrower shall give notice to the Lender as soon as reasonably possible and
      in
      no event more than five days after it receives any compliance orders,
      environmental citations, or other notices from any governmental entity relating
      to any environmental condition relating to its properties or elsewhere for
      which
      it may have legal responsibility, with a full description thereof; the Borrower
      agrees to take any and all reasonable steps and to perform any and all
      reasonable actions necessary or appropriate to promptly comply with any such
      citations, compliance orders or environmental laws requiring it to remove,
      treat
      or dispose of such hazardous materials, wastes or conditions at the sole expense
      of the Appearers and to provide the Lender with satisfactory evidence of such
      compliance; provided,
      that
      nothing contained herein shall preclude the Appearers from contesting any such
      compliance orders or citations if such contest is made in good faith,
      appropriate reserves are established for the payment for the cost of compliance
      therewith, and the Lender’s security interest in any such property affected
      thereby (or the priority thereof) is not jeopardized.

    

    
      	 	
              (13)

            	
              Additional
                Documentation.
                Upon the written request of Lender each Appearer shall promptly and
                duly
                execute and deliver all such further instruments and documents and
                take
                such further action as Lender may deem necessary to obtain the full
                benefits of this Agreement and of the rights and powers granted in
                this
                Agreement.

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	 	
              (14)

            	
              ERISA
                Information and Compliance.
                The Borrower will promptly furnish to the Lender (i) promptly after
                the
                filing thereof with the United States Secretary of Labor or the Pension
                Benefit Guaranty Corporation, copies of each annual and other report
                with
                respect to each Plan or any trust created by the Borrower, and (ii)
                immediately upon becoming aware of the occurrence of any “reportable
                event,” as such term is defined in Section 4043 of ERISA, or of any
                “prohibited transaction,” as such term is defined in Section 4975 of the
                Internal Revenue Code of 1954, as amended, in connection with any
                Plan or
                any trust created by the Borrower, a written notice signed by the
                president, the chairman, the managing member or the chief financial
                officer of the Borrower specifying the nature thereof, what action
                the
                Borrower is taking or proposes to take with respect thereto, and,
                when
                known, any action taken by the Internal Revenue Service with respect
                thereto. The Borrower will comply with all of the applicable funding
                and
                other requirements of ERISA as such requirements relate to the Plans
                of
                the Borrower.

            

    

    

    F. CONDITIONS
      PRECEDENT TO LOANS.
      Lender
      shall have no obligation to advance funds under this Agreement until and unless
      the following conditions have been and remain satisfied:

    

    
      	 	
              (1)

            	
              Lender
                shall have received the Loan and Collateral Documents contemplated
                by this
                Agreement in form and substance satisfactory to
                Lender;

            

    

    

    
      	 	
              (2) 

            	
              All
                representations and warranties made by each Appearer to Lender shall
                be
                true and correct as of the date of the Loan’s funding;
                

            

    

    

    
      	 	
              (3)

            	
              Each
                Appearer’s business must be in a condition satisfactory to Lender, the
                management and ownership of any Appearer must not have changed and
                no
                material adverse change (from that reflected in the last financial
                statements delivered to, and accepted by, Lender prior to execution
                of
                this Agreement) has occurred in the financial condition of the Borrower
                or
                any Appearer; and

            

    

    

    
      	 	
              (4)

            	
              There
                exists no Default (or event which with notice or lapse of time or
                both
                could constitute a Default) under this Agreement or any other agreement
                between Borrower and Lender.

            

    

    

    G. DEFAULT.
      Any of
      the following events shall be considered a “Default” or an “Event of Default” as
      that term is used herein: 

    

    (a) Principal
      and Interest Payments.
      The
      Borrower fails to make payment when due of any principal or interest on the
      Note
      or any other indebtedness to the Lender.

    

    (b) Representations
      and Warranties.
      Any
      representation or warranty contained in this Agreement, the Note or any of
      the
      Collateral Documents proves to have been incorrect in any material respect
      as of
      the date thereof; or any representation, statement (including financial
      statements), certificate or data furnished or made to the Lender by any Appearer
      under this Agreement, the Note or any of the Collateral Documents proves to
      have
      been untrue in any material adverse respect as of the date as of which the
      facts
      therein set forth were stated or certified. 

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (c) Insurance.
      The
      Appearers fail to maintain or cause to be maintained at any time the insurance
      required by this Agreement and the Collateral Documents.

    

    (d) Other
      Debt to Lender.
      The
      Borrower defaults in the payment of any amounts due to the Lender or in the
      observance or performance of any of the covenants or agreements contained in
      any
      credit agreements, notes, leases, collateral or other documents relating to
      any
      debt of the Borrower to the Lender other than the indebtedness incurred pursuant
      to this Agreement.

    

    (e) Other
      Debt to Other Lenders.
      The
      Borrower defaults in the payment of any amounts due to anyone other than the
      Lender or in the observance or performance of any of the covenants or agreements
      contained in any credit agreements, notes, leases, collateral or other documents
      relating to any debt of the Borrower to anyone other than the Lender in excess
      of $50,000.00, and any grace period applicable to such default has
      elapsed.

    

    (f) Involuntary
      Bankruptcy or Receivership Proceedings.
      A
      receiver, conservator, liquidator or trustee of the Borrower or any other
      Appearer or of any of its or his property (including the Property) is appointed
      by order or decree of any court or agency or supervisory authority having
      jurisdiction; or an order for relief is entered against the Borrower or any
      other Appearer under the Federal Bankruptcy Code; or the Borrower or any other
      Appearer is adjudicated bankrupt or insolvent; or any material portion of any
      property of the Borrower or any other Appearer (including the Property) is
      sequestered by court order and such order remains in effect for more than 30
      days after such party obtains knowledge thereof; or a petition is filed against
      the Borrower or any other Appearer under any state, reorganization, arrangement,
      insolvency, readjustment of debt, dissolution, liquidation or receivership
      law
      of any jurisdiction, whether now or hereafter in effect, and such petition
is
      not dismissed within 60 days. 

    

    (g) Voluntary
      Petitions.
      The
      Borrower or any other Appearer files a case under the Federal Bankruptcy Code
      or
      seeks relief under any provision of any bankruptcy, reorganization, arrangement,
      insolvency, readjustment of debt, dissolution or liquidation law of any
      jurisdiction, whether now or hereafter in effect, or consents to the filing
      of
      any case or petition against it or him under any such law.

    

    (h) Assignments
      for Benefit of Creditors.
      The
      Borrower or any other Appearer makes an assignment for the benefit of its or
      his
      creditors, or admits in writing its or his inability to pay its or his debts
      generally as they become due, or consents to the appointment of a receiver,
      trustee or liquidator of the Borrower or any other Appearer or of all or any
      part of its or his property. 

    

    (i) Undischarged
      Judgments.
      Judgment
      for the payment of money in excess of $20,000 (which is not covered by
      insurance) is rendered by any court or other governmental body against the
      Borrower or any other Appearer, and the Appearer does not discharge the same
      or
      provide for its discharge in accordance with its terms, or procure a stay of
      execution thereof within 30 days from the date of entry thereof, and within
      said
      30-day period or such longer period during which execution of such judgment
      shall have been stayed, appeal therefrom and cause the execution thereof to
      be
      stayed during such appeal while providing such reserves therefor as may be
      required under generally accepted accounting principles.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (j) Attachment.
      A writ
      or warrant of attachment or any similar process shall be issued by any court
      against all or any material portion of the Property of the Borrower or any
      other
      Appearer, and such writ or warrant of attachment or any similar process is
      not
      released or bonded within 30 days after its entry.

    

    (k) Condemnation.
      The
      Property, or any portion thereof, is condemned or expropriated under power
      of
      eminent domain by any legally constituted governmental authority.

    

    (l) Other
      Covenants.
      The
      Borrower or other Appearer defaults in the observance or performance of any
      of
      the covenants or agreements contained in this Agreement, the Note or any of
      the
      Collateral Documents, to be kept or performed by the Borrower or such Appearer
      (other than a default under Subsections (a) through (k) hereof), and such
      default continues unremedied for a period of 30 days after notice thereof being
      given by the Lender to the Borrower.

    

    H. REMEDIES.
      (a)
      Upon the happening of any Event of Default specified in the preceding Section
      (other than subsections (f) or (g) thereof), the Lender may by written notice
      to
      the Borrower declare the entire principal amount of the Loan then outstanding
      and interest accrued thereon to be immediately due and payable without
      presentment, demand, protest, notice of protest or dishonor or other notice
      of
      default of any kind, all of which are hereby expressly waived by the Borrower
      and each of the Appearers.

    

    (b) Upon
      the
      happening of any Event of Default specified in subsections (f) or (g) of the
      preceding Section, the entire principal amount of all obligations then
      outstanding including interest accrued thereon shall, without notice or action
      by the Lender, be immediately due and payable without presentment, demand,
      protest, notice of protest or dishonor or other notice of default of any kind,
      all of which are hereby expressly waived by the Borrower.

    

    (c) Upon
      the
      occurrence of any Event of Default, the Lender shall have the right to set-off
      any funds of the Borrower in the possession of the Lender against any amounts
      then due by the Borrower to the Lender pursuant to this Agreement, and to
      enforce all rights of Lender pursuant to the collateral documents and to enforce
      all other remedies available to Lender by contract or law.

    

    I. MISCELLANEOUS
      PROVISIONS.
      Appearers collectively agree to pay all of the costs, expenses and fees incurred
      in connection with the Loan or a default thereunder or the enforcement thereof,
      including attorneys fees and appraisal fees. The rights and obligations of
      Lender under this Agreement and the Collateral Documents may be assigned. This
      Agreement is not assignable by any Appearer and no party other than an Appearer
      is entitled to rely on this Agreement. In no event shall any Appearer or Lender
      be liable to the other for indirect, special or consequential damages, including
      the loss of anticipated profits that may arise out of or are in any way
      connected with the issuance of this Agreement. No
      course
      of dealing nor any failure or delay by Lender with respect to exercising any
      of
      its rights, powers or privileges under this Agreement shall operate as a waiver
      thereof. No condition or other term of this Agreement may be waived or modified
      except by a writing signed by the Borrower and Lender. THIS
      AGREEMENT AND THE PROMISSORY NOTE EVIDENCING THE LOAN UNDER THIS AGREEMENT
      SHALL
      BE GOVERNED BY LOUISIANA LAW. In
      the
      event that any one or more of the provisions contained in this Agreement, the
      Note or the Collateral Documents shall, for any reason, be held invalid, illegal
      or unenforceable in any respect, such invalidity, illegality or unenforceability
      shall not affect any other provision of this Agreement, the Note or the
      Collateral Documents. The rights and remedies of the Lender under this
      Agreement, the Note and the Collateral Documents shall be cumulative, and the
      exercise or partial exercise of any such right or remedy shall not preclude
      the
      exercise of any other right or remedy. Time shall be deemed of the essence
      with
      respect to the performance of all of the terms, provisions and conditions on
      the
      part of the Appearers to be performed hereunder.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    J. RELATIONSHIP.
      The
      relationship between Appearers and Lender shall be solely that of borrower
      and
      lender, and such relationship shall not under any circumstances whatsoever
      be
      construed to be a joint venture or partnership.

    

    K. STOCK
      PURCHASE AGREEMENT.
      Upon
      consummation of the transaction contemplated by the Stock Purchase Agreement:
      i)
      the indemnity provisions contained in Sections 11(b), 11(c) and 12 of this
      Agreement shall be superseded by the indemnity provisions contained in the
      Stock
      Purchase Agreement; and ii) the Guaranty Agreement shall be
      terminated.

     

    -signatures
      on following page-

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
      executed as of the date first above written. 

     

    
      	 	 	 
	BORROWER:	TALEN’S
              MARINE AND
              FUEL, INC.
	 
 	 
 	 
 
	 	By:  	/s/ C.
              Raymond Talen
	 	 	
              

            
	 	Name:	 C. Raymond Talen
	 	 	
              

            
	 	Title:	President
	 	
              

            
	 	 
	GUARANTOR:	/s/ C. Raymond Talen
	 	
              
C.
              RAYMOND TALEN
	 	 
	OWNER:	TALEN LANDING II, INC.
	 	 
	 	By:	/s/ C. Raymond Talen     
	 	 	
              
 
	 	Name:	C. Raymond Talen    
	 	 	
              

            
	 	Title:	President
	 	
              

            
	LENDER:	ALLEGRO BIODIESEL CORPORATION
	 	 
	 	 
	 	By:	/s/ W. Bruce Comer
	 	 	
              
 
	 	Name:	W. Bruce Comer, III    
	 	 	
              
 
	 	Title:	Chief Executive Officer  
	 	 	
              
 

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    Exhibit
      A

    

    The
      property described more fully below, together with all buildings or improvements
      thereon or to be placed thereon, and all rights, ways, privileges, servitudes
      and appurtenances thereunto belonging, and together with all cooling, heating,
      plumbing and lighting fixtures and equipment now or hereafter attached to or
      used in connection with the real estate so described:

    

    A
      8.691
      acre tract of land commencing at a point 494.80 feet South of the Corner of
      Sections 2, 3, 10, 11 of Section 10, Township 13 South, Range 3 West, Cameron
      Parish, thence South 00 degrees 56’ 57” West, a distance of 286.90 feet; thence
      North 89 degrees 13’ 57” West, a distance of 140.64 feet; thence North 00
      degrees 48’ 51” East, a distance of 61.94 feet; thence South 63 degrees 28’ 22”
West, a distance of 158.14 feet; thence South 76 degrees 51’ 55” West, a
      distance of 221.03 feet; thence South 23 degrees 35’ 57” West, a distance of
      545.70 feet; thence North 70 degrees 09’ 28” West, a distance of 232.29 feet;
      thence North 00 degrees 58’ 15” East 591.11 feet; thence South 89 degrees 15’
44” East, a distance of 396.26 feet; thence North 00 degrees 58’ 13” East, a
      distance of 187.40 feet; thence South 89 degrees 06’ 48” East, a distance of
      528.84 feet, to the point of commencement, records of Cameron Parish, Louisiana,
      and as per the plat by Michael P. Guidry dated May 13, 1997 attached to that
      certain Cash Deed recorded in the records of the Clerk of Court’s office of the
      Parish of Cameron, State of Louisiana, under Entry Number
      ____________.

     

    
      
         

      

      
        15

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