Document:

February
      29, 2008

    

    Mr.
      Dale
      S. Barker

    ProEco
      Energy Company 

    P.O.
      Box
      26

    Belle
      Fourche, South Dakota 57717

    

    Re: Project
      for Ethanol Plants 

    

    Dear
      Mr.
      Barker:

    

    In
      our
      previous letter dated January 31, 2008, the parties agreed to revise the
      agreements relating to their relationship regarding the 56 million gallons
      per
      year ethanol plant in South Dakota (the “Potential
      Project”).
      The
      purpose of this letter (this “Letter”)
      is to
      set forth the binding agreements between O2Diesel Corporation, a Delaware
      corporation (“O2Diesel”),
      and
      ProEco Energy Company, Inc., a South Dakota corporation (“ProEco”),
      and
      certain selling shareholders of ProEco,
      with
      respect to the Potential Project. This Letter shall become effective on the
      day
      it is countersigned by you.

    

    
      	 	
              1.

            	
              Loan
                Agreement.
                The parties agree to (a) extend the maturity date of the loans made
                in
                accordance with the terms of the Amended and Restated Term Loan Agreement,
                dated as of December 22, 2006, and as amended and restated on September
                14, 2007, December 15, 2007 and January 31, 2008 (the “Loan
                Agreement”)
                from February 29, 2008 to November 30, 2008 (the “Maturity
                Date”),
                and (b) execute a revised Amended and Term Loan Agreement, as attached
                hereto as Exhibit
                A.
                As of February 28, 2008, there is $1,426,988.08 in principal and
                interest
                outstanding (the “Loan”).
                The Loan is evidenced by the Secured Promissory Note, dated December
                26,
                2006, as attached hereto as Exhibit
                B,
                and the Secured Promissory Note, as attached hereto as Exhibit
                C.
                

            

    

     

    
      	 	
              2.

            	
              Share
                Exchange Agreement.
                The parties agree to terminate the Share
                Exchange Agreement (the “Exchange
                Agreement”),
                dated as of January 12, 2007, by and between O2Diesel and ProEco,
                pursuant
                to Section 6.1(a), effective as of February
                29, 2008 and the parties agree they have no further obligations or
                rights
                pursuant to the Exchange Agreement.

            

    

     

    
      	 	
              3.

            	
              Potential
                Project.
                The parties agree to use their reasonable efforts to obtain financing
                for
                and complete the Potential Project. If O2Diesel locates a potential
                source
                of financing for the Potential Project (the “Financing”),
                the parties agree to renegotiate O2Diesel’s interest in the Potential
                Project to reflect O2Diesel’s time and expense in locating the Financing
                on terms mutually agreeable to the parties. Notwithstanding the foregoing,
                at any time prior to the Maturity Date, ProEco may repay the Loan
                in full.
                Upon repayment by ProEco of the Loan and all other outstanding obligations
                arising out of and related to the Loan Agreement, all obligations
                of each
                of ProEco and O2Diesel under the Loan Agreement and any rights that
                O2Diesel may have in the Potential Project shall terminate in accordance
                with the terms of the Loan Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
        
          Mr.
            Dale
            S. Barker

          February
            29, 2008

          Page
            2

        

      

       

    

    
      	 	
              4.

            	
              Guarantee
                for Katzen International, Inc.
                ProEco acknowledges and agrees that O2Diesel will not guarantee any
                additional payments above the $250,000, as set forth in the Letter,
                dated
                March 27, 2007, from O2Diesel to Katzen International,
                Inc.

            

    

     

    
      	 	
              5.

            	
              Release.

            

    

     

    
      	 	
              a.

            	
              O2Diesel
                hereby releases and forever discharges ProEco, each partner or affiliate
                of ProEco and each of their respective officers, directors, employees
                and
                agents (the “ProEco
                Released Persons”)
                from and waives any and all claims, demands, controversies, actions,
                causes of action, obligations, damages and liabilities of any nature
                whatsoever, whether at law or in equity, known or unknown, suspected
                or
                unsuspected, absolute or contingent (collectively, “Claims”),
                that O2Diesel ever had, now has, or may hereafter have against any
                of the
                ProEco Released Persons arising out of, resulting from or related
                to the
                Exchange Agreement, except that nothing contained herein shall release
                ProEco from its obligations under this Letter or the Loan Agreement.
                

            

    

     

    
      	 	
              b.

            	
              ProEco
                hereby releases and forever discharges O2Diesel, each of its subsidiaries,
                each stockholder or affiliate of O2Diesel, and each of their respective
                officers, directors, employees and agents (the “O2Diesel
                Released Persons”)
                from and waives any and all Claims that ProEco ever had, now has,
                or may
                hereafter have against any of the O2Diesel Released Persons arising
                out
                of, resulting from or related to the Exchange Agreement, except that
                nothing contained herein shall release O2Diesel from its obligations
                under
                this Letter or the Loan Agreement.

            

    

     

    
       

      
        
           

        

        
           

          
            

          

        

        
          
            Mr.
              Dale
              S. Barker

            February
              29, 2008

            Page
              3

          

        

         

      

    

     

    
      	 	
              6.

            	
              Miscellaneous.

            

    

     

    
      	 	
              a.

            	
              Except
                as expressly set forth herein, the Loan Agreement remains in full
                force
                and effect in accordance with its respective
                terms.

            

    

     

    
      	 	
              b.

            	
              This
                Letter may be executed in any number of counterparts, which taken
                together
                shall constitute one and the same
                document.

            

    

     

    Please
      sign and date this Letter in the space provided below to confirm the binding
      agreement and return a copy to the undersigned. We look forward to continuing
      working together with you.

    

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              O2DIESEL
                CORPORATION

            
	 	 
	 	 
	 	 
	 	
              By:  /s/
                Alan Rae

            
	 	
              Alan
                Rae, Chief Executive Officer

            

    

     

    

    Accepted
      and agreed.

    

    PROECO
      ENERGY COMPANY, INC. 

    

    

    
      	
              By:

            	
              /s/
                Dale S. Barker

            
	 	
              Dale
                S. Barker

            

    

    

    Date:
      March 19, 2008

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

     

     

    
 

    

    AMENDED
      AND RESTATED TERM
      LOAN AGREEMENT

    

    Dated
      as
      of December 22, 2006, and as amended and restated on February 29,
      2008

    

    between

    

    

    ProEco
      Energy Company (the “Borrower”)

    

    and

     

    Dale
      S.
      Barker and Barbara Pyle, as Pledgors 

     

    and

     

    O2Diesel
      Corporation (the “Lender” and the “Collateral Agent”)

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    AMENDED
      AND RESTATED TERM
      LOAN AGREEMENT

     

    This
      Amended and Restated Term Loan Agreement (this “Agreement”), dated as of
      December 22, 2006, (the “Effective Date”) and amended and restated as of
      February 29, 2008, is entered into by and among ProEco Energy Company, a South
      Dakota corporation (the “Borrower”), the Pledgors (as defined herein) and
      O2Diesel Corporation, a Delaware corporation as lender (the “Lender”) and as
      collateral agent (the “Collateral Agent”).

     

    RECITALS:

     

    WHEREAS,
      the Borrower requires capital for the purchase of an option (the “Option”) to
      purchase parcels of land (collectively, the “Parcels” and individually, a
“Parcel”) on which a new fuel-grade ethanol plant (the “Potential Project”) is
      to be constructed; 

     

    WHEREAS,
      the Borrower is willing to secure all of its Obligations (as hereinafter
      defined) by granting to the Collateral Agent, for the benefit of itself and
      the
      Lender, security interests in and a lien upon all of its property and assets
      now
      owned or hereafter acquired by the Borrower; 

     

    WHEREAS,
      certain stockholders and officers of the Borrower will benefit from the Loans
      (as hereinafter defined) made by the Lender to the Borrower and are willing
      to
      pledge collateral as security for payment and performance of all of the
      Obligations of the Borrower and to grant to the Collateral Agent, for the
      benefit of itself and the Lender, a security interest in and a lien upon all
      shares of the issued and outstanding common stock of the Borrower (the “Common
      Stock”) held by such officers; 

     

    WHEREAS,
      the Lender is willing to provide the Borrower with such capital on the terms
      and
      conditions hereafter provided; and

     

    WHEREAS,
      the Borrower has requested, and the Lender has agreed to provide, (i) an
      extension of the Maturity Date of the Loans (as defined below) and (ii) an
      increase in the aggregate principal amount of the Delayed Draws (as defined
      below) that may be borrowed pursuant to this Agreement.

     

    NOW,
      THEREFORE, in consideration of the undertakings set forth herein and other
      good
      and valuable consideration, the receipt and sufficiency of which hereby is
      acknowledged, the parties hereto agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    As
      used
      in this Agreement:

     

    “Business
      Day” means, with respect to any borrowing or payment, a day other than Saturday
      or Sunday on which banks are open for business in the State of
      Delaware.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Change
      in Control” means (i) the
      failure of Dale S. Barker and Barbara Pyle to own, beneficially and of record,
      the issued and outstanding shares of voting stock of the Borrower held by them
      as of the Closing Date (appropriately adjusted to reflect stock splits, stock
      dividends, reverse stock splits and similar events), (ii) any merger,
      consolidation, reorganization, recapitalization, or other business combination
      involving the Borrower, in which the stockholders
      of the
      Borrower immediately prior thereto do not own, directly or indirectly,
      outstanding voting securities representing more than fifty percent (50%) of
      the
      combined outstanding voting power of the surviving entity in such merger,
      consolidation, reorganization, recapitalization or other business combination;
      (iii) the
      sale
      of all, or substantially all, of the assets of the Borrower; or
      (iv) the
      sale of voting securities of the Borrower in a transaction or a series of
      related transactions to any person (or group of persons acting in concert)
      that
      results in such person (or group of persons) (together with their affiliates)
      owning more than fifty percent (50%) of the outstanding voting securities of
      the
      Borrower; provided that “Change of Control” shall not include any transaction
      involving the Lender acquiring voting securities or assets or merging with
      the
      Borrower.

    

    “Closing
      Date” means December 22, 2006, or such later date as may be agreed by the
      parties hereto.

    

    “Collateral”
      shall have the meaning ascribed to such term in the Security
      Agreement.

     

    “Credit
      Parties” (each individually, a “Credit Party”) shall mean the Borrower and each
      of the Pledgors. 

    

    “Disclosure
      Schedule” means the disclosure schedule to this Agreement delivered to the
      Lender by the Borrower upon execution and delivery of this
      Agreement.

    

    “Environmental
      Condition” means any contamination or damage to the environment caused by or
      relating to the use, handling, storage, treatment, recycling, generation,
      transportation, release, spilling, leaching, pumping, pouring, emptying,
      discharging, injection, escaping, disposal, dumping or threatened release of
      Hazardous Materials by the Borrower or any other Person. With respect to claims
      by employees or any other third parties, Environmental Condition shall also
      include the exposure of Persons to amounts of Hazardous Materials in amounts
      that have been determined to be deleterious to human health. 

    

    “Environmental
      Laws” means all currently applicable federal, state and local laws, ordinances,
      rules and regulations and standards, policies and other governmental
      requirements, administrative rulings and court judgments and decrees, including
      all amendments, and requirements applicable under common law that relate to
      (1)
      pollution; (2) the protection of human health and safety; (3) the protection
      or
      regulation of the environment, including without limitation, air, soils,
      wetlands, surface and underground water; (4) aboveground or underground storage
      tank regulation or removal; (5) wildlife; (6) protection or regulation of
      natural resources; (7) radioactive materials, including without limitation
      radon; (8) indoor air quality; and (9) chemicals, pesticides, mold or fungus
      or
      similar substances. "Environmental Laws" include, without limitation, the
      Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
      Section 9601, et
      seq.,
      the
      Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et
      seq.,
      the
      Toxic Substance Control Act, 15 U.S.C. Section 2601, et
      seq.,
      the
      Federal Water Pollution Control Act, 33 U.S.C. Section 1251, et
      seq.,
      the
      Hazardous Materials Transportation Act, 49 U.S.C. 5101, et
      seq.,
      the
      Clean Air Act, 42 U.S.C. Section 7401, et
      seq.,
      the
      Safe Drinking Water Act, 42 U.S.C. Section 300f, et
      seq.,
      the
      Occupational Safety and Health Act, 29 U.S.C. Section 651, et
      seq.,
      the
      Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. 11001,
      et
      seq.,
      the
      Atomic Energy Act, 42 U.S.C. Section 2014, et
      seq.,
      the
      National Environmental Policy Act, 42 U.S.C. Section 4321, et
      seq.,
      the
      Endangered Species Act, 16 U.S.C. Section 1531, et
      seq.,
      the
      Federal Insecticide, Fungicide & Rodenticide Act, 7 U.S.C. Section 136,
et
      seq.,
      and
      their state analogs, all applicable state superlien or environmental clean-up
      or
      disclosure statutes in any state in which the Borrower operates or conducts
      any
      business, and all similar local laws, and all implementing regulations.
 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Environmental
      Noncompliance” means any violation of any Environmental Law.

     

    “Hazardous
      Materials” shall mean any materials regulated as hazardous or toxic under
      applicable Environmental Laws, or any other material regulated, or that could
      result in the imposition of liability, under Environmental Laws, including,
      without limitation, petroleum, petroleum products, fuel oil, crude oil or any
      fraction thereof, derivatives or byproducts of petroleum products or fuel oil,
      natural gas, mold, hazardous substances, toxic substances, polychlorinated
      biphenyls, any materials containing more than one percent (1%) asbestos by
      weight and any other substance determined to present a deleterious effect on
      human health or the environment. 

     

    “Intellectual
      Property” means all of the following as they exist in any jurisdiction
      throughout the world, in each case, to the extent owned by, licensed to, or
      otherwise used by the Borrower: (a) patents, patent applications and the
      inventions, designs and improvements described and claimed therein, patentable
      inventions, and other patent rights (including any divisionals, continuations,
      continuations-in-part, substitutions, or reissues thereof, whether or not
      patents are issued on any such applications and whether or not any such
      applications are amended, modified, withdrawn, or refiled) (collectively,
“Patents”); (b) trademarks, service marks, trade dress, trade names, brand
      names, Internet domain names, designs, logos, or corporate names (including,
      in
      each case, the goodwill associated therewith), whether registered or
      unregistered, and all registrations and applications for registration thereof
      (collectively, “Trademarks”); (c) works of authorship and all copyrights
      therein, including all renewals and extensions, copyright registrations and
      applications for registration, and non-registered copyrights (collectively,
      “Copyrights”); (d) trade secrets, confidential business information,
      concepts, ideas, designs, research or development information, processes,
      procedures, techniques, technical information, specifications, operating and
      maintenance manuals, engineering drawings, methods, know-how, data, mask works,
      discoveries, inventions, modifications, extensions, improvements, and other
      proprietary rights (whether or not patentable or subject to copyright,
      trademark, or trade secret protection) (collectively, “Trade Secrets”); (e) all
      domain name registrations, web sites and web pages and related rights, items
      and
      documentation related thereto (collectively, “Internet Assets”);
      (f) computer software programs, including all source code, object code, and
      documentation related thereto and all software modules, tools and databases
      (“Software”); (g) mask works, and (h) all licenses, and sublicenses,
      and other agreements or permissions related to the preceding
      property.

     

    “IT
      Assets” means computers, computer software (except for “off the shelf” or
“shrink-wrap” software), firmware, middleware, servers, workstations, routers,
      hubs, switches, data communication lines, and all other information technology
      equipment, and all associated documentation.

     

    “Loan
      Documents” means this Agreement, the LOI, the Notes and any Security
      Documents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “LOI”
      means that certain letter of intent, dated November 30, 2006, signed by the
      Lender and acknowledged by the Borrower.

    

    “Maturity
      Date” means November 30, 2008.

     

    “Mortgage”
      (or “Mortgages”) means any mortgage, deed of trust, deed to secure debt and
      other instrument, from time to time executed by the Borrower for the purpose
      of
      granting the Collateral Agent, for its benefit and the benefit of the Lender,
      a
      lien on real property of the Borrower, in form and substance satisfactory to
      the
      Lender.

     

    “Obligations”
      means (i) all current or future unpaid principal of and accrued and unpaid
      interest (including without limitation, interest accruing during the pendency
      of
      any bankruptcy, insolvency, receivership or other similar proceeding, regardless
      of whether allowed or allowable in such proceeding) on the Notes when and as
      due, whether at maturity, by acceleration, upon one or more dates set for
      prepayment or otherwise; (ii) all other monetary obligations, including but
      not
      limited to, interest, fees, charges; and (iii) the due and punctual performance
      of all covenants, agreements, obligations and liabilities of the Borrower now
      or
      hereafter due arising under or in connection with the Loan Documents, expenses,
      indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
      (including monetary obligations incurred during the pendency of any bankruptcy,
      insolvency, receivership or other similar proceeding, regardless of whether
      allowed or allowable in such proceeding) of the Borrower now or hereafter due
      under or in connection with the Loan Documents.

     

    “Person”
      means any corporation, natural person, firm, joint venture, partnership, trust,
      unincorporated organization, enterprise, government or any department or agency
      of any government.

     

    “Pledge
      Agreement” means that certain Pledge Agreement dated as of the date hereof, by
      and among the Pledgors and the Collateral Agent. 

     

    “Pledged
      Collateral” shall have the meaning ascribed to such term in the Pledge
      Agreement.

     

    “Pledgors”
      means Dale S. Barker and Barbara Pyle.

     

    “Purchase
      Agreement” means that any definitive agreement entered into between the Borrower
      and the Lender pursuant to which the Lender acquires all or a portion of the
      Borrower’s assets or voting securities.

     

    “Security
      Documents” means the Security Agreement, the Pledge Agreement and such other
      agreements, instruments, documents, financing statements, warehouse receipts,
      bills of lading, notices of assignment of accounts, schedules of accounts
      assigned, mortgages and other written matter necessary or reasonably requested
      by the Lender to perfect and maintain perfected the Lender’s first priority
      security interest in the Collateral.

     

    “Security
      Agreement” means that certain Security Agreement, dated as of the date hereof,
      by and between the Borrower and the Pledgors as Grantors and the Collateral
      Agent.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Solvent”
      means, with
      respect to any Person, that (i) the fair value of all of such Person's
      properties and assets is in excess of the total amount of its debts (within
      the
      meaning of the U.S. Bankruptcy Code); (ii) it is able to pay its debts as they
      mature; (iii) it does not have unreasonably small capital for the business
      in
      which it is engaged or for any business or transaction in which it is about
      to
      engage; and (iv) it is not "insolvent" as such term is defined in Section
      101(31) of the U.S. Bankruptcy Code.

    

    “Trains
      Project” means the project to build two 50 million gallon trains in connection
      with the Potential Project as described in the LOI.

    

    “Transaction”
      means the acquisition by the Lender of 80% of the Common Stock of the Borrower
      in accordance with the terms and conditions set forth in the Purchase Agreement.
      

    

    “U.S.
      Bankruptcy Code” means Title
      11
      of the United States Code, 11 U.S.C. Section 101, et seq.

    

    The
      words
“herein,” “hereof” and “hereunder” and other words of similar import refer to
      this Agreement as a whole, including the Exhibits and Schedules hereto, as
      the
      same may from time to time be amended, modified or supplemented, and not to
      any
      particular section, subsection or clause contained in this
      Agreement.

     

    Wherever
      from the context it appears appropriate, each term stated in either the singular
      or plural shall include the singular and the plural, and pronouns stated in
      the
      masculine, feminine or neuter gender shall include the masculine, the feminine
      and the neuter.

    

     

    ARTICLE
      II

     

    THE
      LOANS

     

    2.1 Loans.

     

    (a) Subject
      to satisfaction of the terms and conditions set forth in this Agreement, the
      Lender agrees to make a term loan to the Borrower on the Closing Date in an
      aggregate principal amount of $150,000 (the “Initial Loan”), the proceeds of
      which shall be used by the Borrower solely to purchase the Option.

     

    (b) The
      Borrower may request that the Lender make additional term loans to the Borrower
      in an aggregate principal amount of up to $1,250,000 (each a “Delayed Draw”, and
      together with the Initial Loan, the “Loans”) by delivering a written request to
      the Lender specifying the amount of the Delayed Draw, the Business Day on which
      the Borrower wishes to make the Delayed Draw and the proposed use of the funds
      provided by the Delayed Draw. The Lender may, in its absolute discretion, agree
      to provide a Delayed Draw to the Borrower, in each case in the amount and on
      the
      Business Day specified in the applicable Borrowing Request, subject to the
      conditions set forth in Section 3.2 of this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.2 Repayment.
      

     

    (a) The
      Borrower shall repay the Loans, together with all interest due thereon, and
      all
      other amounts owing under this Agreement or the Loan Documents in connection
      with the Loans in full on the Maturity Date; notwithstanding any of the
      foregoing, upon the Lender closing on a transaction to provide financing for
      the
      Trains Project, all amounts owing under this Agreement or the Loan Documents
      in
      connection with the Loans shall be converted into an intercompany loan from
      the
      Lender to the Borrower (the “Intercompany Loan”) evidenced by a promissory note
      to be repaid on a date mutually agreed upon by the parties. 

     

    (b) The
      obligation of the Borrower to repay the principal amount of the Loans, and
      any
      and all interest which accrues thereon, shall be evidenced by a series of
      promissory notes executed and delivered by the Borrower in the form of Exhibit
      A
      hereto (collectively, the “Notes” and each individually, a “Note”).

     

    (c) In
      the
      event that the Lender informs the Borrower that the Lender either (i) is unable
      to obtain financing for the Trains Project or (ii) chooses to participate in
      another opportunity related to an ethanol plant or the ethanol industry, the
      parties shall use commercially reasonable efforts to renegotiate mutually
      agreeable repayment terms of all amounts then owing under this Agreement or
      the
      Loan Documents in connection with the Loans.

     

    2.3 Interest.
      Interest on the Loans shall accrue at a per annum rate equal to seven percent
      (7%) (the “Applicable Rate”), provided, however, during any period in which a
      Default (as defined below), shall exist, interest on the Loans shall accrue
      at a
      rate per annum equal to two percent (2%) above the Applicable Rate. Interest
      shall be calculated for actual days elapsed on the basis of a 360-day year.
      Interest on the Loans shall not be paid in cash but instead automatically shall
      be added to the outstanding principal balance of the Loans on the first
      (1st)
      Business Day of each calendar month prior to the Maturity Date and shall be
      treated in all respects as outstanding principal under the Loans.

     

    2.4 Method
      of Payment.
      All
      payments of principal and fees hereunder shall be made in immediately available
      funds in United States Dollars to the Lender at the Lender’s address specified
      pursuant to Section 8.11, by noon (local time) on the date the same shall be
      due. The Loans may be prepaid in whole or in part without penalty. Amounts
      repaid or prepaid with respect to the Loans may not be reborrowed, provided
      that
      the Borrower shall give the Lender written notice of its intention to prepay
      any
      of the outstanding amounts, which notice shall specify the amount to be so
      prepaid and the date of such prepayment, not less than two (2) Business Days
      prior to such prepayment.

     

    

    ARTICLE
      III

     

    CONDITIONS
      PRECEDENT

     

    3.1 Conditions
      to the Initial Loan.
      The
      obligation of the Lender to make the Initial Loan shall be subject to the
      following conditions precedent: 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a) each
      of
      the Credit Parties, to the extent applicable to such Credit Party, shall have
      furnished to the Lender, or caused to be furnished to the Lender (unless
      otherwise waived by Lender in writing), the following, in form and substance
      reasonably satisfactory to the Lender and its counsel, each dated as of the
      Effective Date (or such other date as shall be acceptable to the Lender):

     

    (i)
      each
      of the following Loan Documents to which it is a party, duly executed by an
      authorized officer and the other parties thereto: this Agreement, a Note in
      the
      principal amount of $150,000, the Security Agreement and the Pledge Agreement;
      

     

    (ii)
      evidence of all filings of the financing statements with respect to the Security
      Agreement and the other Security Documents; searches or other evidence as to
      the
      absence of any liens on the Collateral; and evidence that all other actions
      with
      respect to the liens created by the Security Documents have been taken as are
      necessary or appropriate to perfect such liens and establish a first priority
      security interest in favor of the Lender in the Collateral, including the
      Pledged Collateral; and

     

    (iii) such
      other documents as the Lender or its counsel may reasonably
      request.

     

    (b) the
      representations and warranties of each Credit Party made in Article IV of this
      Agreement and the other Loan Documents shall be true and correct when made,
      and
      shall be true in on and as of the Closing Date (except to the extent such
      representations and warranties specifically relate to an earlier date, in which
      case such representations and warranties shall be true and correct as of such
      earlier date); 

     

    (c) each
      Credit Party shall have performed and complied with all agreements, obligations
      and conditions contained in this Agreement that are required to be performed
      or
      complied with by it on or before the Closing Date; and

     

    (d) the
      Lender shall have received an opinion letter, dated as of the Closing Date
      and
      addressed to the Collateral Agent and the Lender, from counsel to the Borrower,
      in a form that is reasonably satisfactory to the Lender.

     

    3.2 Conditions
      to Subsequent Drawings.
      The
      obligation of the Lender to lend additional amounts for any Delayed Draw shall
      be subject to the following conditions precedent and solely at the discretion
      of
      the Lender: 

    

    (a) no
      Default (as defined below) has occurred or is continuing or would result from
      the Delayed Draw; 

     

    (b) as
      of the
      date that the Delayed Draw is made, all of the representations and warranties
      of
      the Borrower contained in Article IV and in the other Loan Documents shall
      be
      true and correct (except to the extent such representations and warranties
      specifically relate to an earlier date, in which case such representations
      and
      warranties shall be true and correct as of such earlier date, and except for
      changes after the Closing Date which are not prohibited by any Loan Document);
      

     

    (c) the
      Borrower shall have performed and complied with all agreements, obligations
      and
      conditions contained in this Agreement that are required to be performed or
      complied with by it in order to make a Delayed Draw, including the Post-Closing
      Conditions Subsequent, if applicable; 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d) the
      Lender shall have completed its first level due diligence review of the
      Borrower’s business, assets, contracts, prospects and financial condition and
      the technical feasibility of the Potential Project, and the Lender shall be
      satisfied in all respects with the results of such first level due diligence
      review; and

     

    (e) the
      Borrower shall have delivered (i) a Note, duly executed by an authorized
      officer, in the principal amount of the applicable Delayed Draw and (ii) any
      documents related to the proposed use of Funds for the Delayed Draw as the
      Lender shall reasonably request.

     

    3.3 Post-Closing
      Conditions Subsequent.
      

    

    (a) Within
      thirty (30) days following the Closing Date, the Borrower shall enter into
      an
      executed account control agreement, in a form reasonably satisfactory to the
      Lender, with respect to each account maintained by the Borrower.

     

    (b) Within
      ten (10) days following the Closing Date, the Borrower shall deliver to the
      Lender evidence in a form acceptable to the Lender that the Borrower has used
      the funds advanced in the Initial Loan to make a payment toward the purchase
      of
      the Option.

     

    

    ARTICLE
      IV

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Except
      as
      set forth on the Disclosure Schedule delivered by the Borrower to the Lender,
      each section of which shall only qualify the representation or warranty in
      the
      correspondingly numbered Section of this Agreement, each Credit Party, as
      applicable, represents and warrants to the Lender that on the date
      hereof:

     

    4.1 Organization
      and Qualification.
      The
      Borrower is a corporation duly organized, validly existing and in good standing
      under the laws of the state of South Dakota, is qualified to transact business
      in the jurisdictions listed on the Disclosure Schedule and has the requisite
      corporate power and authority and legal capacity to own and operate its
      properties and assets, to conduct its business as now conducted and as currently
      proposed to be conducted in the future, to enter into, execute and deliver
      this
      Agreement and the Loan Documents, to issue the Notes and to perform its
      obligations under this Agreement and the Loan Documents and any other agreement
      to which the Borrower is a party, the execution and delivery of which are
      contemplated hereby. The Borrower is duly qualified to transact business and
      is
      in good standing, if applicable, in each jurisdiction in which the failure
      to so
      qualify would have a material adverse effect on its business, condition, results
      or operations, assets or liabilities (a “Material Adverse Effect”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.2 Authorization;
      Enforceable Obligations.
      Except
      as set forth on the Disclosure Schedule, the execution, delivery and performance
      by the Borrower of each of the Loan Documents, to the extent it is a party
      thereto, and the creation of all liens provided for herein and therein:
      (a)  have been and will be duly authorized by all necessary or proper
      action; (b) are not in contravention of any provision of the Borrower’s
      by-laws or charter; (c) will not violate any law or regulation, or any
      order or decree of any court or governmental instrumentality; (d) will not
      conflict with or result in the breach or termination of, constitute a default
      under, or accelerate any performance required by, any indenture, mortgage,
      deed
      of trust, lease, agreement or other instrument to which the Borrower is a party
      or by which the Borrower or any of its property is bound (except for such
      conflict, breach, termination, default or acceleration as could not reasonably
      be expected to have a Material Adverse Effect); (e) will not result in the
      creation or imposition of any lien upon any of the property of the Borrower
      other than those in favor of the Lender, all pursuant to the Loan Documents;
      and
      (f) do not require the consent or approval of any governmental body,
      agency, authority or any other Person, except such consents as have been
      obtained. Each of the Loan Documents delivered in connection herewith at such
      time shall have been duly executed and delivered for the benefit of or on behalf
      of the Borrower, and each shall then constitute a legal, valid and binding
      obligation of the Borrower, enforceable against it in accordance with its terms.
      

     

    4.3 No
      Default.
      The
      Borrower is not, and after giving effect to this Agreement shall not be, in
      default in the payment or performance of any contractual obligation where such
      default could have a material adverse effect on the business, properties,
      assets, liabilities or condition (financial or otherwise) on the
      Borrower.

     

    4.4 Financial
      Information; Minute Books, Solvency.
      

     

    (a) All
      balance sheets, all statements of operations, stockholders’ equity and cash
      flows, and all other financial information of the Borrower which have been
      or
      shall hereafter be furnished by or on behalf of the Borrower to the Lender
      for
      the purposes of or in connection with this Agreement or any transaction
      contemplated hereby, have been prepared in accordance with GAAP consistently
      applied throughout the periods involved and present fairly in all material
      respects the matters reflected therein subject, in the case of unaudited
      statements, to changes resulting from normal year-end audit adjustments and
      except as to the absence of footnotes. As of the date here, the Borrower has
      no
      material contingent liabilities or material liabilities for taxes, long-term
      leases or forward or long-term commitments except as set forth on the Disclosure
      Schedule.

     

    (b) The
      Borrower is Solvent and, after giving effect to the borrowings under this
      Agreement, will be Solvent.

     

    4.5 Investment
      Company Act.
      No
      Credit Party is, or after giving effect to the transactions contemplated by
      the
      Loan Documents will be, an “investment company” or an “affiliated person” or
“promoter” of, or “principal underwriter” of or for, an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended, or any
      other federal or state law limiting its ability to incur debt or to execute,
      deliver or perform the Loan Documents to which it is a party. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.6 Intellectual
      Property.
      

     

    (a) The
      Disclosure Schedule sets forth a true and complete list of (i) all Intellectual
      Property owned by the Borrower, indicating for each item that is registered
      the
      registration or application number and the applicable filing jurisdiction and
      (ii) all Intellectual Property contracts (other than licenses for commercial
      “off-the-shelf” or “shrink-wrap” software that are not material to the business,
      operations, financial condition or performance of the Borrower, taken as a
      whole). The Borrower exclusively owns (beneficially, and of record where
      applicable) all right, title and interest in and to all Intellectual Property
      set forth on the Disclosure Schedule (the “Scheduled Intellectual Property”)
      free and clear of all liens not otherwise permitted in this Agreement, exclusive
      licenses and non-exclusive licenses not granted in the ordinary course of
      business. The Scheduled Intellectual Property is not subject to any outstanding
      order, judgment, decree, or agreement adversely affecting the use thereof by
      the
      Borrower or its rights thereto, and is valid, subsisting and enforceable. The
      Borrower does not, and has not in the past five years, infringed or otherwise
      violated the Intellectual Property rights of any third party. The Borrower
      has
      sufficient rights to use all Intellectual Property used in its business as
      presently conducted, all of which rights shall survive the consummation of
      the
      transactions contemplated by this Agreement unchanged There is no litigation,
      opposition, cancellation, proceeding, objection, or claim pending, asserted,
      or
      threatened against the Borrower concerning the ownership, validity,
      registerability, enforceability, infringement, use of, or licensed right to
      use
      any Intellectual Property, except as set forth on the Disclosure Schedule.
      To
      the knowledge of the Borrower, no valid basis exists for any such litigation,
      opposition, cancellation, proceeding, objection, or claim. To the Borrower’s
      knowledge, no person is violating any Scheduled Intellectual Property right
      that
      the Borrower holds exclusively.

     

    (b) The
      Scheduled Intellectual Property that is registered has been duly registered
      with, filed in, or issued by, as the case may be, the United States Patent
      and
      Trademark Office or such other filing offices, domestic or foreign, as
      applicable, and such registration, filings, issuances, and other actions remain
      in full force and effect, and are current and unexpired. The Borrower has
      properly executed and recorded all documents necessary to perfect its title
      to
      all Scheduled Intellectual Property, and has filed all documents and paid all
      taxes, fees, and other financial obligations required to maintain in force
      and
      effect all such items.

    

    (c) The
      Borrower has taken all reasonable measures to protect the confidentiality and
      value of all Trade Secrets that are owned, used, or held by the Borrower, and,
      to the Borrower’s knowledge, such Trade Secrets have not been used, disclosed
      to, or discovered by any person except pursuant to valid and appropriate
      non-disclosure and/or license agreements that have not been breached. All
      current and prior employees of the Borrower have executed valid intellectual
      property and confidentiality agreements for the benefit of the Borrower, and
      to
      the Borrower’s knowledge, no current or prior employee is in default or breach
      of any term of any such agreement.

    

    (d) The
      IT
      Assets operate and perform in all material respects in accordance with their
      documentation and functional specifications and otherwise as required by the
      Borrower in connection with its business, and have not materially malfunctioned
      or failed within the past three (3) years. To the Borrower’s knowledge, no
      person has gained unauthorized access to the IT Assets. The Credit Parties
      have
      implemented reasonable backup and disaster recovery technology consistent with
      industry practices.

    

    4.7 Insurance.
      All
      policies of insurance in effect of any kind or nature owned by or issued to
      the
      Borrower, (a) as of the Closing Date are listed on the Disclosure Schedule,
      (b)
      are in full force and effect, and (c) are of a nature and provide such coverage
      as is customarily carried by companies engaged in similar businesses as the
      Borrower. The Borrower does not provide any of its insurance through
      self-insurance.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.8 Environmental
      Matters.
      Except
      as set forth on the Disclosure Schedule, the Borrower has not received any
      written, or to the knowledge of any Credit Party oral, claim or notice alleging
      that the Borrower is not in compliance with or is in violation of any
      Environmental Law, or has liability or responsibility under any Environmental
      Law. There are no pending or, to the knowledge of any Credit Party threatened,
      investigations, inquiries, administrative proceedings, actions, suits, claims,
      charges, complaints, demands, notices or legal proceedings against the Borrower,
      the Borrower’s business or assets, under Environmental Laws, including those
      that involve or relate to Environmental Conditions, Environmental Noncompliance
      or the release, use, disposal or arranging for disposal of any Hazardous
      Materials on or from any real property used, leased or owned by the Borrower.
      Except as set forth on the Disclosure Schedule, the Borrower has not released
      any Hazardous Materials on, under or about any real property used, leased or
      owned by the Borrower in quantities that are required to be reported under
      or
      that requires investigation or remediation pursuant to Environmental Law or
      that
      otherwise is in violation of any requirement of any Environmental Law. The
      Borrower is in compliance with Environmental Laws. The Borrower has not
      generated, stored, treated, handled, disposed of, or arranged to dispose of,
      Hazardous Materials in a manner or to a location that could reasonably be
      expected to result in liability to the Borrower under Environmental Laws. The
      Borrower has not exposed any employee or other individual to any Hazardous
      Materials or conditions that could reasonably be expected to form the basis
      for
      any present or future action, suit, proceeding, hearing, investigation, charge,
      complaint, claim, or demand for damage to, or investigation and remediation
      of,
      any site, location or body of water (surface or subsurface), or any illness
      of
      or personal injury to any employee or individual. 

     

    4.9 Accounts.
      The
      Disclosure Schedule lists all accounts, whether a deposit account or a
      securities account, of the Borrower.

     

    4.10 Additional
      Representations and Warranties.
      All
      representations and warranties made in the Security Agreement are true, correct
      and complete as of the Effective Date, except to the extent such representations
      and warranties are specifically made as of a particular date (in which case
      such
      representations and warranties are true and correct as of such particular
      date).

     

    

    ARTICLE
      V

     

    COVENANTS

     

    For
      so
      long as the Loans remain outstanding under this Agreement, unless the Lender
      shall otherwise consent in writing, each Credit Party covenants and agrees,
      as
      applicable, that from, and after the date hereof (except as otherwise provided
      in this Agreement, or unless the Lender has given its prior written
      consent):

     

    5.1 Notices.
      It
      shall give the Collateral Agent prompt written notice of any (a) Default (as
      defined below), (b) any notice received related to any environmental matter
      described in Section 4.8 of this Agreement, (c) any material amendment to the
      Borrower’s bylaws or charter, or (d) the occurrence of any event, condition or
      other circumstance that, singly or in the aggregate, could reasonably be
      expected to result in a Material Adverse Effect, in each case accompanied by
      copies of all notices given or received by such Credit Party with respect to
      such event or condition.  

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.2 Maintenance
      of a Perfected, First Priority Security Interest.
      It
      shall execute all documents and take all actions necessary to perfect and
      maintain at all times the Lender’s first priority security interest in all of
      the Collateral (including the Pledged Collateral as defined in the Pledge
      Agreement), now owned or acquired at any later date by such Credit Party.

     

    5.3 Real
      Estate.
      If the
      Borrower shall acquire a fee or leasehold interest in real estate, the Borrower
      will execute a first priority Mortgage, in form and substance reasonably
      satisfactory to the Lender, in favor of the Collateral Agent, for its benefit
      and the benefit of the Lender, and shall deliver to the Collateral Agent such
      title insurance policies, surveys and landlords’ estoppel agreements with
      respect thereto as the Collateral Agent or the Lender shall reasonably
      request.

     

    5.4 Deposit
      Accounts.
      The
      Borrower shall not maintain any account without an effective account control
      agreement, in form and substance reasonably satisfactory to the Lender.

     

    5.5 Execution
      of Supplemental Instruments.
      It
      shall execute and deliver to the Lender from time to time, upon demand, such
      supplemental agreements, statements, assignments and transfers, or instructions
      or documents relating to the Collateral, and such other instruments as the
      Lender may request, in order that the full intent of this Agreement may be
      carried into effect.

     

    5.6 Corporate
      Name; Domicile.
      The
      Borrower shall not amend or modify its Articles of Incorporation to change
      its
      corporate name. No Credit Party shall change its domicile without providing
      at
      least ten (10) Business Days’ prior written notice to the Collateral
      Agent.

     

    5.7 Change
      of Control.
      No
      Change of Control shall occur.

     

    ARTICLE
      VI

     

    DEFAULTS

     

    The
      occurrence of any one or more of the following events shall constitute a default
      hereunder (each, a “Default”):

     

    6.1 Any
      representation or warranty made in this Agreement by any Credit Party to the
      Lender shall be materially false on the date as of which the same is
      made.

     

    6.2 Nonpayment
      of any amount of principal or accrued, unpaid interest due under any Note as
      and
      when the same is due and payable.

     

    6.3 The
      breach by the Borrower of any of the covenants contained in Article V
      hereof.

     

    6.4 The
      occurrence of any default or event of default under any of the other Loan
      Documents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.5 The
      Borrower shall (i) have an order for relief entered with respect to it under
      the
      federal bankruptcy laws as now or hereafter in effect, (ii) make an assignment
      for the benefit of creditors, (iii) apply for, seek, consent to, acquiesce
      in,
      or have appointed for it or any substantial portion of its property a receiver,
      custodian, trustee, examiner, liquidator or similar official for it or any
      substantial part of its property, (iv) institute any proceeding seeking an
      order
      for relief under the Federal bankruptcy laws as now or hereafter in effect
      or
      seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
      winding up, liquidation, reorganization, arrangement, adjustment or composition
      of it or its debts under any law relating to bankruptcy, insolvency or
      reorganization or relief of debtors or fail to file an answer or other pleading
      denying the material allegations of any such proceeding filed against it, or
      (v)
      take any corporate action to authorize or effect any of the foregoing actions
      set forth in this Section 6.5.

     

    ARTICLE
      VII

     

    ACCELERATION,
      WAIVERS, AMENDMENTS AND REMEDIES

     

    7.1 Acceleration.
      If any
      Default described in Section 6.5 occurs with respect to the Borrower, the
      Obligations shall immediately become due and payable without any election,
      notice or action on the part of the Lender. If any other Default occurs, the
      Lender may declare the Obligations to be due and payable, whereupon the
      Obligations shall become immediately due and payable, without presentment,
      demand, protest or notice of any kind, all of which the Borrower hereby
      expressly waives.

     

    7.2 Amendments.
      The
      Lender and the Credit Parties may enter into written agreements supplemental
      hereto for the purpose of adding or modifying any provisions to the Loan
      Documents or changing in any manner the rights of the Lender or any Credit
      Party
      hereunder or waiving any Default hereunder. To be effective, any such amendment
      or waiver must be in writing and signed by the Lender and each Credit
      Party.

     

    7.3 Preservation
      of Rights, No Adverse Impact.
      No
      delay or omission of the Lender or the Collateral Agent to exercise any right
      under this Agreement or any of the Loan Documents shall impair such right or
      be
      construed to be a waiver of any Default or an acquiescence therein. Any single
      or partial exercise of any such right shall not preclude other or further
      exercise thereof or the exercise of any other right, and no waiver, amendment
      or
      other variation of the terms, conditions or provisions of the Loan Documents
      whatsoever shall be valid unless in writing signed by the Lender, and then
      only
      to the extent in such writing specifically set forth. All remedies contained
      in
      the Loan Documents, or by law afforded shall be cumulative and all shall be
      available to the Lender until the Obligations have been paid in
      full.

     

    7.4 Remedies.

     

    (a) Upon
      the
      occurrence and during the continuance of a Default, the Lender may proceed
      to
      protect and enforce to the Lender’s rights by suit in equity, action of law
      and/or other appropriate proceeding either for specific performance of any
      covenant or condition contained in this Agreement, any Loan Document or in
      any
      instrument or document delivered to the Lender pursuant hereto, or in the
      exercise of any rights, remedies or powers granted in this Agreement, any Loan
      Document and/or any such instrument or document. The Lender may proceed to
      declare the obligations under this Agreement or any Loan Document to be due
      and
      payable pursuant to Section 7.1 hereof and the Lender may proceed to enforce
      payment of such documents as provided herein, or in any Loan Document, and
      may
      offset and apply toward the payment of such amount any indebtedness of any
      Credit Party to the Borrower.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Upon
      the
      occurrence and during the continuance of a Default, the Lender may apply as
      any
      Credit Party’s attorney-in-fact for any Intellectual Property rights, and sell,
      lease or license the Collateral to third persons or associations without being
      liable to such Credit Party on account of any losses, damage or depreciation
      that may occur as a result thereof so long as the Lender shall act reasonably
      and in good faith; and at the Lender’s option and without notice to such Credit
      Party (except as specifically herein provided) the Lender may sell, license,
      assign and deliver the whole or any part of the Collateral, or any substitute
      therefor or any addition thereto, at public or private sale, for cash, upon
      credit, or for future delivery, at such prices and upon such terms as the Lender
      deems advisable. The Lender shall give the applicable Credit Party at least
      ten
      (10) Business Days’ by hand delivery at or by United States first-class mail,
      postage prepaid (in which event notice shall be deemed to have been given when
      so deposited in the mail), to the address specified herein, of the time and
      place of any public or private sale or other disposition.

     

    (c) If
      any
      Default described in Section 6.2 occurs with respect to the Borrower, the Lender
      may, at its absolute discretion, exercise the Option to purchase the Parcels
      or
      any Parcel.

     

    7.5 Application
      of Proceeds.
      Any and
      all proceeds of any Collateral realized or obtained by the Lender upon exercise
      of its rights and remedies hereunder, shall be applied to the amounts
      outstanding under this Agreement or any other Loan Document, after payment
      of
      any and all costs and expenses, fees and commission and taxes of such sale,
      collection or other realization, in accordance with the following:

     

    (a) Any
      and
      all proceeds of any Collateral shall first be applied to the payment of any
      and
      all expenses, charges or other amounts which may be due and owing under this
      Agreement or the other Loan Documents; and

     

    (b) Any
      and
      all proceeds of any Collateral remaining after application as provided in
      paragraph (a) above shall be applied to the payment of principal, interest
      or
      charges outstanding with respect to the Loans or under any Note or the other
      Loan Documents; and

     

    (c) Any
      surplus remaining after application as provided in paragraphs (a) and (b) above,
      shall be paid to the Borrower, or its successors or assigns, or to whomsoever
      may be lawfully entitled to receive the same.

    

    ARTICLE
      VIII

     

    GENERAL
      PROVISIONS

     

    8.1 Survival
      of Representations.
      All
      representations and warranties of the Borrower contained in this Agreement
      shall
      survive delivery of any Note and the making of the Loans herein
      contemplated.

     

    8.2 Termination
      of Security Interest and Related Obligations.
      In the
      event that the Loans are converted to an Intercompany Loan as provided for
      in
      Section 2.2 of this Agreement, the covenants set forth in Sections 5.2
      through 5.4 of this Agreement and any and all obligations of the Credit Parties
      to provide security under or arising out of any other Loan Document shall
      terminate and the Collateral Agent will release the Collateral pursuant to
      the
      terms of the applicable Security Documents, except that any indemnities provided
      to the Lender in its capacity as “Lender” or as “Collateral Agent” shall survive
      the termination of any provisions of this Agreement or any Loan
      Document.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.3 Headings.
      Section
      headings in this Agreement are for convenience of reference only, and shall
      not
      govern the interpretation of any of the provisions of this
      Agreement.

     

    8.4 Entire
      Agreement.
      The
      Loan Documents embody the entire agreement and understanding between the Credit
      Parties and the Lender and supersede all prior agreements and understandings
      between the Credit Parties and the Lender relating to the subject matter
      thereof.

     

    8.5 No
      Third Party Beneficiary.
      This
      Agreement shall not be construed so as to confer any right or benefit upon
      any
      Person other than the parties to this Agreement and their respective successors
      and assigns.

     

    8.6 Expenses.
      Upon
      the occurrence of a Default, and so long as a Default is continuing, the Credit
      Parties shall pay to the Lender on demand all expenses reasonably incurred
      in
      connection with the collection and enforcement of all Obligations under the
      Loan
      Documents including, without limitation, all reasonable attorneys’ fees, and all
      reasonable costs incurred by the Lender in connection with the collection and
      enforcement of the Obligations and in connection with any proceeding commenced
      by or against the Borrower under the U.S. Bankruptcy Code.

     

    8.7 Severability
      of Provisions.
      Any
      provision in this Agreement that is held to be inoperative, unenforceable,
      or
      invalid in any jurisdiction shall, as to that jurisdiction, be inoperative,
      unenforceable, or invalid without affecting the remaining provisions in that
      jurisdiction or the operation, enforceability, or validity of that provision
      in
      any other jurisdiction, and to this end the provisions of this Agreement are
      declared to be severable.

     

    8.8 Nonliability
      of the Lender.
      The
      relationship between the Borrower and the Lender shall be solely that of
      borrower and lender, and that between the Pledgors and the Lender shall be
      solely that of pledgor and secured creditor. The Lender shall have no fiduciary
      responsibilities to any Credit Party. The Lender undertakes no responsibility
      to
      any Credit Party to review or inform the any Credit Party of any matter in
      connection with any phase of any Credit Party’s business or
      operations.

     

    8.9 CHOICE
      OF LAW.
      THIS
      AGREEMENT AND THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS
      CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
      ACCORDANCE WITH THE LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF
      DELAWARE.

     

    8.10 Jurisdiction/Jury
      Trial Waiver/Other Matters.
      

     

    (a) The
      Lender and each Credit Party acknowledge and agree that any controversy which
      may arise under this Agreement or the relationship of such Credit Party and
      the
      Lender established hereby, would be based upon difficult and complex issues.
      Accordingly, to the fullest extent permitted by law, each Credit Party and
      the
      Lender hereby waive trial by jury in any action or proceeding of any kind or
      nature in any court in which an action may be commenced by or against such
      Credit Party arising out of this Agreement or by reason of any other cause
      or
      dispute whatsoever between such Credit Party and the Lender of any kind or
      nature.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Each
      Credit Party and the Lender agree that the United States District Court for
      Delaware or any state court located in the State of Delaware shall have
      jurisdiction to hear and determine any claims or disputes between such Credit
      Party and the Lender pertaining directly or indirectly to this Agreement or
      to
      any matter arising herefrom. Each Credit Party expressly submits and consents
      in
      advance to such jurisdiction in any action or proceeding commenced in such
      court. Each Credit Party and the Lender waive any objection that they may now
      or
      hereafter have to the venue of any proceeding in any such court or that such
      proceeding was brought in an inconvenient forum and each agrees not to plead
      or
      claim the same.

     

    (c) Each
      Credit Party hereby waives personal service of any summons and complaint, or
      other process or papers issued therein, and agrees that service of such summons
      and complaint, or other process or papers may be made by United States mail,
      postage prepaid addressed to such Credit Party at the address set forth below
      his or her signature hereto. Should such Credit Party fail to appear or answer
      any summons, complaint, process or papers so served within thirty days after
      the
      mailing thereof, he or she shall be deemed in default and an order and/or
      judgment may be entered against him or her or her as prayed for in such summons,
      complaint, process or papers.

     

    8.11 Further
      Assurances.
      Each
      Credit Party at its own expense, shall do, make, execute and deliver all such
      additional and further acts, deeds, assurances, documents, instruments and
      certificates as the Lender may reasonably require, including, without
      limitation, (a) executing, delivering and filing financing statements and
      continuation statements under the Uniform Commercial Code of the State of
      Delaware, (b) obtaining governmental and other third party consents and
      approvals, and (c) obtaining waivers from mortgagees and
      landlords.

     

    8.12 Successors
      and Assigns.
      The
      terms and provisions of this Agreement and the Loan Documents shall be binding
      upon and inure to the benefit of the Credit Parties and the Lender and their
      respective successors and assigns, except that the Credit Parties shall not
      have
      the right to assign its rights or obligations under the Loan Documents and
      any
      assignment in violation thereof shall be null and void.

     

    8.13 Giving
      Notice.
      All
      notices and other communications provided to any party hereto under this
      Agreement or any other Loan Document shall be in writing or by facsimile and
      addressed or delivered to such party at their addresses as follows (unless
      designated in writing to the other parties): (i) if to any Credit Party, at
      the
      address set forth below such Credit Party’s name on the signature page hereto
      and (ii) if to the Lender, at the address set forth the Lender’s name on the
      signature page hereto. Any notice, if mailed and properly addressed with postage
      prepaid, shall be deemed given three (3) Business Days after being sent; any
      notice, if transmitted by facsimile, shall be deemed given when
      transmitted.

     

    8.14 Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one agreement, and any of the parties hereto may
      execute this Agreement by signing any such counterpart. Facsimiled and
      photocopied signatures to this Agreement shall be valid. This Agreement shall
      be
      effective when it has been executed by each Credit Party and the
      Lender.

     

    

    [Remainder
      of page intentionally left blank; signature page follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Loan Agreement as of
      the
      date first above written.

     

    
      	
            
	
              PROECO
                ENERGY COMPANY

            
	 	 
	 	 
	
              By:

            	
              /s/
                Dale S. Barker

            
	
              Name:

            	
              Dale
                S. Barker

            
	
              Title:

            	
              President

            
	
              Address:

            	
              P.O.
                Box 261

            
	 	
              Belle
                Fourche, South Dakota 57717

            
	 	 
	
              Telephone:

            
	
              Facsimile:

            
	 
	 
	 
	
              O2DIESEL
                CORPORATION

            
	 
	 	 
	 	 
	
              By:

            	
              /s/
                David H. Shipman

            
	
              Name:

            	
              David
                H. Shipman

            
	
              Title:

            	
              Chief
                Financial Officer

            
	
              Address:

            	
              100
                Commerce Drive, Suite 301

            
	
            	
              Newark,
                Delaware 19713

            
	 	 
	
              Telephone:

            	
              (302)
                266-6000

            
	
              Facsimile:

            	
              (302)
                266-7076

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    
      	
              PLEDGORS:

            
	 
	
              DALE
                S. BARKER

            
	 
	
              /s/
                Dale S. Barker

            
	
              Address:

            
	
              Telephone:

            
	
              Facsimile:

            
	 
	 
	 
	 
	
              BARBARA
                PYLE

            
	 
	
              /s/
                Barbara Pyle

            
	
              Address:

            
	
              Telephone:

            
	
              Facsimile:

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXECUTION
      COPY

    
      

      

      EXHIBIT
        B

      

      SECURED
        PROMISSORY NOTE

      

      

      
        	
                $150,000

              	
                Newark,
                  Delaware

              
	 	
                December
                  26, 2006

              

      

       

      

      ProEco
        Energy Company, Inc.,
        a South
        Dakota corporation (the “Company”),
        FOR
        VALUE RECEIVED, hereby unconditionally promises to pay to the order of O2Diesel
        Corporation (“O2Diesel”
or
        the
“Holder”),
        in
        U.S. dollars in immediately available funds, the principal amount of One
        Hundred
        Fifty Thousand and NO/100 ($150,000) (the “Principal
        Amount”),
        together with interest on the unpaid principal balance of this Secured
        Promissory Note (the “Note”)
        outstanding from time to time from the date hereof, at the rate provided
        in the
        Loan Agreement (as defined below). The books and records of the Holder shall
        be
        conclusive as to the unpaid principal amount of this Note at any time
        outstanding, absent manifest error. 

       

      This
        Note
        is issued pursuant to the terms of the Loan Agreement, dated December 22,
        2006
        (as such agreement may from time to time be amended, restated, modified or
        supplemented, the “Loan
        Agreement”)
        to
        which the Company and the Holder are parties, to which reference is hereby
        made
        for a statement of all of the terms and conditions applicable to the Loan
        evidenced, hereby. Capitalized terms used but not otherwise defined herein
        shall
        have the meanings ascribed to such terms in the Loan Agreement.

       

      1. Loan.
        The
        Holder hereby loans to the Company on the date hereof the sum of the Principal
        Amount. The principal amount of the indebtedness evidenced hereby shall be
        due
        and payable on the dates specified in the Loan Agreement. Interest thereon
        shall
        be paid until such principal amount is paid in full in accordance with and
        at
        such interest rates and at such times as are specified in the Loan
        Agreement.

       

      2. Default.
        Upon
        the occurrence and during the continuance of a Default, this Note may, as
        provided in the Loan Agreement, and without demand, notice or legal process
        of
        any kind (other than notices expressly provided for in the Loan Documents),
        be
        declared, and immediately shall become, due and payable. In addition, the
        Holder
        shall have the right to exercise other remedies as provided in the Loan
        Agreement. This Note is secured by the Security Documents.

       

      3. Waivers.

       

      (a) The
        Company hereby waives presentment, demand for payment, notice of dishonor,
        notice of protest, and protest in connection with the delivery, acceptance,
        performance, or default of this Note. 

       

      (b) No
        delay
        by the Holder in exercising any power or right hereunder shall operate as
        a
        waiver of any power or right, nor shall any single or partial exercise of
        any
        power or right preclude other or further exercise thereof, or the exercise
        of
        any other power or right hereunder or otherwise. No waiver or modification
        of
        the terms hereof shall be valid unless set forth in writing by the Holder.
        

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4. Secured
        Obligations.
        In
        order to induce the Holder to loan to the Company the Principal Amount of
        this
        Note, the Company has delivered, or caused to be delivered, to O2Diesel,
        as
        collateral agent for the Holder and any other holder of Notes (the “Collateral
        Agent”), the Security Documents, pursuant to which the Pledgors (as defined in
        that certain Security Agreement, dated as of December 22, 2006, by and among
        the
        Borrower, the Pledgors and the Secured Creditor and Collateral Agent (the
        “Security
        Agreement”))
        has
        granted to the Collateral Agent, on behalf of the Holder and any other holder
        of
        Notes, as security and collateral for the payment and performance of its
        obligations hereunder, a first priority security interest in all of the property
        and assets of the Company and certain assets of each of the Pledgors, whether
        now existing or hereafter arising, and all as more specifically described,
        and
        on the terms and conditions set forth in, the Security Agreement.

       

      5. General.

       

      (a) Successors:
        Assignment.
        This
        Note and the obligations and rights of the Company hereunder shall be binding
        upon and inure to the benefit of the Company and the Holder and their respective
        successors. The Company may not assign this Note or any obligations hereunder
        without the prior written consent of the Holder. 

       

      (b) Changes.
        Changes
        in or additions to this Note may be made, or compliance with any term, covenant,
        agreement, condition or provision set forth herein, may be omitted or waived
        (either generally or in a particular instance and either retroactively or
        prospectively) upon written consent of the Holder. 

       

      (c) Notices.
        All
        notices, demands or other communications to be given or delivered under or
        by
        reason of the provisions of this Note shall be in writing and shall be deemed
        to
        have been given when delivered personally to the recipient, faxed with
        confirmation of receipt, sent to the recipient by reputable overnight courier
        service (charges prepaid) or mailed to the recipient by certified or registered
        mail, return receipt requested and postage prepaid. Such notices, demands
        and
        other communications shall be sent to the Holder at the address indicated
        below:

       

      O2Diesel
        Corporation

      100
        Commerce Drive, Suite 301

      Newark,
        Delaware 19713 

      Attn:
        David Shipman, Chief Financial Officer

      Tel: (302)
        266-6000

      Fax: (302)
        266-7076

      

      With
        a
        copy to: 

      

      Arnold
        & Porter LLP

      1600
        Tysons Boulevard, Suite 900

      McLean,
        Virginia 22102

      Attn:
        Kevin J. Lavin, Esq.

      Tel: (703)
        720-7011

      Fax: (703)
        720-7399

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

       

      and
        to
        the Company at the address indicated below: 

      

      ProEco
        Energy Company.

      P.O.
        Box
        261

      Belle
        Fourche, South Dakota 57717 

      Attn:
        Dale S. Barker

      Tel: (605)

      Fax: (605)

      

      With
        a
        copy to: 

      

      Buckmaster
        Law Offices, PC

      P.O.
        Box
        726

      Belle
        Fourche, South Dakota 57717 

      Attn:
        Wesley W. Buckmaster

      Tel: (605)
        892-2623

      Fax: (605)
        892-6337

       

      or
        to
        such other address or to the attention of such other person as the recipient
        party has specified by prior written notice to the sending party. 

      

      (d) Severability.
        If any
        term or provision of this Note shall be held invalid, illegal or unenforceable,
        the validity of all other terms and provisions hereof shall in no way be
        affected thereby. 

       

      6. Governing
        Law.
        

       

      (a)
         This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        parties shall be governed by, the laws of the State of Delaware, without
        regard
        to choice of law principles. 

       

      (b) The
        parties hereto hereby submit to the jurisdiction of the state and federal
        courts
        located in the State of Delaware for the purposes of any suit, action or
        other
        proceeding relating to any dispute under this Note. The Company hereby waives
        any right it may have to transfer or change the venue of any litigation between
        itself and the Holder in accordance with this sub-section.

       

      (c) THE
        COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
        TO
        TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH IN ANY MANNER ARISES OUT
        OF OR
        IN CONNECTION WITH OR IS IN ANY WAY RELATED TO THIS NOTE OR ANY OF THE
        TRANSACTIONS CONTEMPLATED HEREIN.

      

      [SIGNATURE
        PAGE FOLLOWS]

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF,
        this
        Note has been executed and delivered on the date first above written by the
        undersigned duly authorized representative of the Company.

      

      

      
        	
                PROECO
                  ENERGY COMPANY, INC.

              
	 	 
	 	 
	
                By:

              	
                /s/
                  Dale Barker

              
	
                Name:

              	
                Dale
                  Barker 

              
	
                Title:

              	
                President

              

      

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    EXECUTION
      COPY

    
      

      

      EXHIBIT
        C

      

      SECURED
        PROMISSORY NOTE

      

      Newark,
        Delaware

       

      ProEco
        Energy Company, Inc.,
        a South
        Dakota corporation (the “Company”),
        FOR
        VALUE RECEIVED, hereby unconditionally promises to pay to the order of O2Diesel
        Corporation (“O2Diesel”
or
        the
“Holder”),
        in
        U.S. dollars in immediately available funds, the Principal Amount (as defined
        below) together with interest on the unpaid principal balance of this Secured
        Promissory Note (the “Note”)
        outstanding from time to time from the date hereof, at the rate provided
        in the
        Loan Agreement (as defined below). The books and records of the Holder shall
        be
        conclusive as to the unpaid Principal Amount of this Note at any time
        outstanding, absent manifest error. 

       

      This
        Note
        is issued pursuant to the terms of the Loan Agreement, dated December 22,
        2006
        (as such agreement may from time to time be amended, restated, modified or
        supplemented, the “Loan
        Agreement”)
        to
        which the Company and the Holder are parties, to which reference is hereby
        made
        for a statement of all of the terms and conditions applicable to the Loan
        evidenced, hereby. Capitalized terms used but not otherwise defined herein
        shall
        have the meanings ascribed to such terms in the Loan Agreement.

       

      1. Loan.
        The
        Holder hereby loans to the Company on the date hereof the sum of the Principal
        Amount. As used in this Note, the “Principal
        Amount”
means
        the aggregate amount loaned to the Company by the Holder as reflected on
        Schedule
        A
        to this
        Note. Schedule
        A
        reflects
        all amount loaned to the Company by the Holders as of December 15, 2007.
        The
        Company shall amend Schedule
        A
        to
        include any such loans to the Company by the Holder or any of its affiliates
        made after such date. The Principal Amount of the indebtedness evidenced
        hereby
        shall be due and payable on the dates specified in the Loan Agreement. Interest
        thereon shall be paid until such Principal Amount is paid in full in accordance
        with and at such interest rates and at such times as are specified in the
        Loan
        Agreement.

       

      2. Default.
        Upon
        the occurrence and during the continuance of a Default, this Note may, as
        provided in the Loan Agreement, and without demand, notice or legal process
        of
        any kind (other than notices expressly provided for in the Loan Documents),
        be
        declared, and immediately shall become, due and payable. In addition, the
        Holder
        shall have the right to exercise other remedies as provided in the Loan
        Agreement. This Note is secured by the Security Documents.

       

      3. Waivers.

       

      (a) The
        Company hereby waives presentment, demand for payment, notice of dishonor,
        notice of protest, and protest in connection with the delivery, acceptance,
        performance, or default of this Note. 

       

      (b) No
        delay
        by the Holder in exercising any power or right hereunder shall operate as
        a
        waiver of any power or right, nor shall any single or partial exercise of
        any
        power or right preclude other or further exercise thereof, or the exercise
        of
        any other power or right hereunder or otherwise. No waiver or modification
        of
        the terms hereof shall be valid unless set forth in writing by the Holder.
        

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4. Secured
        Obligations.
        In
        order to induce the Holder to loan to the Company the Principal Amount of
        this
        Note, the Company has delivered, or caused to be delivered, to O2Diesel,
        as
        collateral agent for the Holder and any other holder of Notes (the “Collateral
        Agent”), the Security Documents, pursuant to which the Pledgors (as defined in
        that certain Security Agreement, dated as of December 22, 2006, by and among
        the
        Borrower, the Pledgors and the Secured Creditor and Collateral Agent, as
        such
        agreement may from time to time be amended, restated, modified or supplemented
        (the “Security
        Agreement”))
        has
        granted to the Collateral Agent, on behalf of the Holder and any other holder
        of
        Notes, as security and collateral for the payment and performance of its
        obligations hereunder, a first priority security interest in all of the property
        and assets of the Company and certain assets of each of the Pledgors, whether
        now existing or hereafter arising, and all as more specifically described,
        and
        on the terms and conditions set forth in, the Security Agreement.

       

      5. General.

       

      (a) Successors:
        Assignment.
        This
        Note and the obligations and rights of the Company hereunder shall be binding
        upon and inure to the benefit of the Company and the Holder and their respective
        successors. The Company may not assign this Note or any obligations hereunder
        without the prior written consent of the Holder. 

       

      (b) Changes.
        Changes
        in or additions to this Note may be made, or compliance with any term, covenant,
        agreement, condition or provision set forth herein may be omitted or waived
        (either generally or in a particular instance and either retroactively or
        prospectively), upon written consent of the Holder. 

       

      (c) Notices.
        All
        notices, demands or other communications to be given or delivered under or
        by
        reason of the provisions of this Note shall be in writing and shall be deemed
        to
        have been given when delivered personally to the recipient, faxed with
        confirmation of receipt, sent to the recipient by reputable overnight courier
        service (charges prepaid) or mailed to the recipient by certified or registered
        mail, return receipt requested and postage prepaid. Such notices, demands
        and
        other communications shall be sent to the Holder at the address indicated
        below:

       

      O2Diesel
        Corporation

      100
        Commerce Drive, Suite 301

      Newark,
        Delaware 19713 

      Attn:
        David Shipman, Chief Financial Officer

      Tel: (302)
        266-6000

      Fax: (302)
        266-7076

      

      With
        a
        copy to: 

      

      Arnold
        & Porter LLP

      1600
        Tysons Boulevard, Suite 900

      McLean,
        Virginia 22102

      Attn:
        Kevin J. Lavin, Esq.

      Tel: (703)
        720-7011

      Fax: (703)
        720-7399

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      and
        to
        the Company at the address indicated below: 

      

      ProEco
        Energy Company.

      P.O.
        Box
        261

      Belle
        Fourche, South Dakota 57717 

      Attn:
        Dale S. Barker

      Tel: (605)

      Fax: (605)

      

      With
        a
        copy to: 

      

      Buckmaster
        Law Offices, PC

      P.O.
        Box
        726

      Belle
        Fourche, South Dakota 57717 

      Attn:
        Wesley W. Buckmaster

      Tel: (605)
        892-2623

      Fax: (605)
        892-6337

      

      or
        to
        such other address or to the attention of such other person as the recipient
        party has specified by prior written notice to the sending party. 

      

      (d) Severability.
        If any
        term or provision of this Note shall be held invalid, illegal or unenforceable,
        the validity of all other terms and provisions hereof shall in no way be
        affected thereby. 

       

      6. Governing
        Law.
        

       

      (a)
         This
        Note
        shall be construed and enforced in accordance with, and the rights of the
        parties shall be governed by, the laws of the State of Delaware, without
        regard
        to choice of law principles. 

       

      (b) The
        parties hereto hereby submit to the jurisdiction of the state and federal
        courts
        located in the State of Delaware for the purposes of any suit, action or
        other
        proceeding relating to any dispute under this Note. The Company hereby waives
        any right it may have to transfer or change the venue of any litigation between
        itself and the Holder in accordance with this sub-section.

       

      (c) THE
        COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
        TO
        TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH IN ANY MANNER ARISES OUT
        OF OR
        IN CONNECTION WITH OR IS IN ANY WAY RELATED TO THIS NOTE OR ANY OF THE
        TRANSACTIONS CONTEMPLATED HEREIN.

      

      [SIGNATURE
        PAGE FOLLOWS]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF,
        this
        Note has been executed and delivered on the date first above written by the
        undersigned duly authorized representative of the Company.

      

      

      
        	
                PROECO
                  ENERGY COMPANY, INC.

              
	 	 
	 	 
	
                By:

              	
                /s/
                  Dale Barker

              
	
                Name:

              	
                Dale
                  Barker 

              
	
                Title:

              	
                President

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
        A

      

       

      
        	
                Date

              	
                Amount

              
	
                1/17/2007

              	
                125,000.00

              
	
                3/14/2007

              	
                125,000.00

              
	
                4/25/2007

              	
                75,000.00

              
	
                5/14/2007

              	
                65,000.00

              
	
                5/30/2007

              	
                65,000.00

              
	
                6/12/2007

              	
                65,000.00

              
	
                6/27/2007

              	
                65,000.00

              
	
                7/10/2007

              	
                65,000.00

              
	
                7/25/2007

              	
                65,000.00

              
	
                8/15/2007

              	
                65,000.00

              
	
                9/07/2007

              	
                65,000.00

              
	
                10/01/2007

              	
                65,000.00

              
	
                10/15/2007

              	
                65,000.00

              
	
                10/25/2007

              	
                40,000.00

              
	
                11/01/2007

              	
                65,000.00

              
	
                11/15/2007

              	
                40,000.00

              
	
                11/30/2007

              	
                40,000.00

              
	
                12/14/2007

              	
                40,000.00

              
	
                1/18/2008

              	
                10,000.00

              
	 	 
	
                Total:

              	
                $1,210,000.00EXHIBIT
      4.1

    

    THIS
      NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
      THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON THE EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS PROVIDED BY
      REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE SOLD,
      PLEDGED, TRANSFERRED, ASSIGNED, HYPOTHECATED, OR OTHERWISE DISPOSED OF WITHOUT
      COMPLIANCE WITH SUCH REQUIREMENTS OR A WRITTEN OPINION OF COUNSEL ACCEPTABLE
      TO
      THE OBLIGOR THAT SUCH TRANSFER WILL NOT RESULT IN ANY VIOLATION OF SUCH LAWS
      OR
      AFFECT THE LEGALITY OF THEIR ISSUANCE.

     

    PROMISSORY
      NOTE

    

      
        	
                US$200,000

              	
                March
                  17, 2008

              

      

    

     

    FOR
      VALUE RECEIVED,
      the
      undersigned, Hosting Site Network, Inc., a Delaware corporation (the "Obligor"),
      hereby promises to pay to the order of Hemisphere Trading Corp. (the "Holder"),
      the principal sum of Two Hundred Thousand Dollars ($200,000) payable as set
      forth below without interest. The payment of principal hereunder shall be made
      in coin or currency of the United States of America which at the time of payment
      shall be legal tender therein for the payment of public and private
      debts.

    

    This
      Note
      shall be subject to the following additional terms and conditions:

    

    1.  Payments.
      All
      principal due hereunder shall be payable in one (1) installment on May 1, 2008
      (the “Maturity Date”). In the event that any payment to be made hereunder shall
      be or become due on Saturday, Sunday or any other day which is a legal bank
      holiday under the laws of the State of New York, such payment shall be or become
      due on the next succeeding business day.

    

    2.  Prepayment.
      The
      Obligor and the Holder understand and agree that the principal amount of this
      Note can be prepaid by Obligor at any time without penalty.

    

    3.  No
      Waiver.
      No
      failure or delay by the Holder in exercising any right, power or privilege
      under
      the Note shall operate as a waiver thereof nor shall any single or partial
      exercise thereof preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege. The rights and remedies herein provided
      shall be cumulative and not exclusive of any rights or remedies provided by
      law.
      No course of dealing between the Obligor and the Holder shall operate as a
      waiver of any rights by the Holder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.  Waiver
      of Presentment and Notice of Dishonor.
      The
      Obligor and all endorsers, guarantors and other parties that may be liable
      under
      this Note hereby waive presentment, notice of dishonor, protest and all other
      demands and notices in connection with the delivery, acceptance, performance
      or
      enforcement of this Note.

    

    5.  Place
      of Payment.
      All
      payments of principal of this Note shall be made at such place as the Holder
      may
      from time to time designate in writing.

    

    6.  Events
      of Default.
      The
      entire unpaid principal amount of this Note shall, at the option of the Holder
      exercised by written notice to the Obligor forthwith become and be due and
      payable, without presentment, demand, protest or other notice of any kind,
      all
      of which are hereby expressly waived, if any one or more of the following events
      (herein called "Events of Default") shall have occurred (for any reason
      whatsoever and whether such happening shall be voluntary or involuntary or
      come
      about or be effected by operation of law or pursuant to or in compliance with
      any judgment, decree or order of any court or any order, rule or regulation
      of
      any administrative or governmental body) and be continuing at the time of such
      notice:

    

    (a) 
      if
      default shall be made in the due and punctual payment of principal of this
      Note
      when and as the same shall become due and payable, whether at maturity, or
      by
      acceleration or otherwise, and such default have continued for a period of
      five
      (5) business days following Obligor’s receipt of written notice from Obligor
      advising of such default;

    

    (b) if
      the
      Obligor shall:

    

    
      	1.  	
              admit
                in writing its inability to pay its debts generally as they become
                due;

            

    

    

    
      	2.  	
              file
                a petition in bankruptcy or petition to take advantage of any insolvency
                act;

            

    

    

    
      	3.  	
              make
                assignment for the benefit of
                creditors;

            

    

    

    
      	4.  	
              consent
                to the appointment of a receiver of the whole or any substantial
                part of
                its property;

            

    

    

    
      	5.  	
              on
                a petition in bankruptcy filed against it, be adjudicated a
                bankrupt;

            

    

    

    
      	6.  	
              file
                a petition or answer seeking reorganization or arrangement under
                the
                Federal bankruptcy laws or any other applicable law or statute of
                the
                United States of America or any State, district or territory thereof;
                or

            

    

    

    (c) if
      the
      court of competent jurisdiction shall enter an order, judgment, or decree
      appointing, without the consent of the Obligor, a receiver of the whole or
      any
      substantial part of the Obligor's property, and such other, judgment or decree
      shall not be vacated or set aside or stayed with ninety (90) days from the
      date
      of entry thereof; and

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (d) if,
      under
      the provisions of any other law for the relief or aid of debtors, any court
      or
      competent jurisdiction shall assume custody or control of the whole or any
      substantial part of Obligor's property and such custody or control shall not
      be
      terminated or stayed within (90) days from the date of assumption of such
      custody or control; and

    

    7.  Remedies.
      In case
      any one or more of the Events of Default specified in Section 6 hereof shall
      have occurred and be continuing, the Holder may proceed to protect and enforce
      its rights whether by suit and/or equity and/or by action law, whether for
      the
      specific performance of any covenant or agreement contained in this Note or
      in
      aid of the exercise of any power granted in this Note, or the Holder may proceed
      to enforce the payment of all sums due upon the Note or enforce any other legal
      or equitable right of the Holder.

    

    8.  Severability.
      In the
      event that one or more of the provisions of this Note 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
      Note, but this Note shall be construed as if such invalid, illegal or
      unenforceable provision had never been contained herein.

    

    9.  Governing
      Law
      This
      Note and the right and obligations of the Obligor and the Holder shall be
      governed by and construed in accordance with the laws of the State of New York.
      Any action to enforce this Note shall be in the federal or state courts of
      New
      York situated in New York County.

    

    IN
      WITNESS WHEREOF,
      Hosting
      Site Network, Inc. has signed this Note as of the 17th day of March
      2008.

     

    
      
        
          	
                  OBLIGOR:

                
	 	 	 
	
                  HOSTING
                    SITE NETWORK, INC.

                
	 	 	 
	 	 	 
	
                  By:

                	
                  /s/
                    Scott Vicari

                
	 	
                  Name:
                    

                	
                  Scott
                    Vicari

                
	 	
                  Title:

                	
                  President

                

        

      

    

     

    
      
        
        

      

      
        3

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