Document:

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[caad 234]I                                 LOAN AGREEMENT

                  THIS AGREEMENT is made and entered into by and between CROWN
ASPHALT CORPORATION, a Utah Corporation (hereinafter called "BORROWER") and
MCNIC PIPELINE & PROCESSING COMPANY, a Michigan corporation (hereinafter called
"LENDER").

                  WHEREAS the Borrower has requested the Lender to make
available to the Borrower a term loan of $2,991,868.66. Lender is willing to
extend such credit upon the terms and conditions of this Agreement. All terms
not defined in this Agreement shall have the same meaning as set forth in the
Operating Agreement for Crown Asphalt Ridge, L.L.C. ("CAR") made and executed by
Borrower and Lender and dated as of August 1, 1997 (the "OPERATING AGREEMENT").

                  NOW, THEREFORE, for and in consideration of the foregoing and
the mutual covenants hereinafter contained, the Lender and Borrower agree as
follows:

         1. THE LOAN. Upon and subject to the terms and conditions of this
Agreement, the Lender will make a loan (the "LOAN") to the Borrower in the
amount of $2,991,868.66, which loan shall bear interest at the Prime Rate, as
published in the money rates section of the Wall Street Journal, plus 1% per
annum, adjusted monthly and paid by the Borrower pursuant to the terms of a
Promissory Note (the "NOTE") dated of even date herewith from the Borrower to
the Lender, which Note, by this reference, is incorporated herein and made a
part hereof. For purposes of this Agreement, including all other agreements
executed in connection herewith or which refer to this Agreement, the term
"Indebtedness" shall mean the principal balance of the Loan, together with
interest, late fees, costs, attorney's fees and all other sums assessable and
due under the terms of this Agreement, including the Note.

         2. COLLATERAL. The repayment of the Loan and all extensions and
renewals thereof, and the performance of all obligations of Borrower hereunder,
including the obligations under the Promissory Note, shall be secured by, and
Borrower hereby grants to Lender a security interest in and to, that portion of
Borrower's Sharing Ratio (as defined in the Operating Agreement) in CAR directly
attributable to the Contribution (as defined below) made with the Loan proceeds
(the "Collateral").

         3.  EVENTS  OF  DEFAULT.  Time  shall  be  considered  of  the  essence
concerning this Agreement, including the Note and all of their provisions, and
the occurrence of any one or more of the following shall constitute an "EVENT OF
DEFAULT":

          a)   If any payment due or to be made under the terms of this
               Agreement, or the Note is not paid within 10 days of the date
               such payment is due;

          b)   There shall exist a default for a period of more than 30 days in
               the performance or observance of any other obligation, covenant,
               or liability contained in this Agreement or the Note;

          c)   Any action is taken by any governmental entity which materially
               and adversely affects the Borrower's business.

          d)   Any warranty or representation made or furnished to Lender by or
               on behalf of Borrower proves to have been false in any material
               respect when made or furnished.

          e)   Bankruptcy, insolvency, reorganization or liquidation proceedings
               or other proceedings for relief under any bankruptcy law or any
               other law for the relief of

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               debtors shall be instituted by or against Borrower (except for an
               involuntary petition against Borrower, which shall not constitute
               an Event of Default if such petition is vacated or dismissed
               within 30 days after filing thereof), or any order, judgment or
               decree shall be entered against Borrower decreeing its
               dissolution.

          f)   Dissolution or liquidation of the existence of Borrower.

         4. REMEDIES. Upon an Event of Default, Lender may, at its option,
         exercise any one or more of the following remedies:

          a)   Accelerate the remaining balance of the indebtedness due under
               this Agreement, including the Note, and demand immediate payment
               of the same, together with all accrued interest, late charges,
               and other amounts recoverable by Lender under this Agreement.

          b)   Exercise any and every right and remedy allowed at law or in
               equity.

         5. BORROWER'S REPRESENTATIONS, WARRANTIES AND COVENANTS. In order to
induce Lender to make the Loan, Borrower represents and warrants to Lender, and
covenants and agrees with Lender for so long as any obligation or indebtedness
owed to Lender hereunder remains unpaid, as follows:

          a)   ENTITY EXISTENCE AND STANDING OF BORROWER. Borrower is and shall
               remain a corporation duly formed, validly existing, and in good
               standing under the law of the State of Utah, with all requisite
               authority to conduct its business in any other state in which it
               conducts business. The Borrower shall not be dissolved as
               provided under the terms of the Utah statutes governing the
               creation and existence of corporations.

          b)   COMPLIANCE WITH LAWS. The Borrower will promptly comply with all
               laws, rules, regulations, ordinances, codes, decrees, and orders
               applicable to the operation of its business.

          c)   FINANCIAL STATEMENTS. Any financial statements and other
               financial information provided to Lender in connection with this
               loan, or hereinafter provided to Lender is and will be true and
               accurate in all material respects and fairly represent the
               financial condition of the party providing such financial
               information, all in accordance with generally accepted accounting
               principles applied on a consistent basis.

          d)   LEGAL PROCEEDINGS. Except for the current arbitration and other
               actions relating to CAR, there is and shall be no pending or
               threatened action or proceeding affecting Borrower which may have
               any material adverse effect upon the financial condition or
               operation of Borrower.

          e)   TAXES. Borrower has filed and paid, and will continue to file and
               pay (or provide evidence to Lender of an extension), all state
               and federal taxes owed by or assessed against Borrower to the
               extent the same are currently due and payable, including, without
               limitation, all state sales taxes as well as all income, excise
               and employment related taxes.

          f)   USE OF PROCEEDS. The proceeds of the Loan shall be used by
               Borrower solely to make the Contribution.

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                                 LOAN AGREEMENT
                                     PAGE 2

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          g)   OTHER LIENS. Except as provided in the Operating Agreement, there
               are no other liens, security interests or pledges against the
               Collateral.

          h)   NO DISPOSITION OF ASSETS. The Borrower shall not sell, assign,
               dispose of, grant a security interest in or otherwise assign the
               Collateral.

         6. GOVERNING LAW. The terms and obligations of this Agreement shall be
governed by the laws of the State of Utah, and Borrower hereby consents to
personal jurisdiction in Salt Lake County, Utah in the event of any litigation
by Lender under this Agreement.

         7. LENDER'S CONSENT. Whenever the Lender's consent is required for any
action by the Borrower, the Lender agrees that it will respond to the Borrower's
request with reasonable promptness, and will not unreasonably withhold consent
to any reasonable requests of the Borrower.

         8. INSPECTIONS AND AUDITS. Borrower agrees that Lender may inspect the
Borrower's business operations and/or audit the books of Borrower or its
successors, at any time after 48 hours prior notice to Borrower as Lender deems
necessary during normal business hours.

         9. SEVERABILITY. In case any one or more of the provisions contained in
this Agreement should be invalid, illegal, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

         10. FURTHER ASSURANCES. Borrower shall take such further action as may
be reasonably requested by Lender to effect the purpose of this Agreement,
including, without limitation, the execution and delivery of any other documents
as may be necessary to effect the intent of this Agreement.

         11. BINDING EFFECT. The promises of the parties in this Agreement shall
bind the respective heirs, administrators, personal representatives, successors,
and assigns.

         12. NOTICES. Any notice to be given under this Agreement shall be
deemed given when placed in the United States Mail, postage prepaid with return
receipt, addressed as follows:

         Borrower:         215 South State Street, Suite 650

                           Salt Lake City, Utah 84111

         Lender:           150 West Jefferson, Suite 1700

                           Detroit, Michigan 48226

         Either party may change its address by providing notice of such change
to the other party.

         13. ATTORNEY'S FEES AND OTHER COSTS. In the event of a default or
breach of this Agreement, or the Note by either party, the defaulting party
agrees to pay and be responsible for all reasonable attorney's fees and/or costs
of collection or enforcement incurred by the non-defaulting party as a result of
such default, including, without limitation, any attorneys fees incurred in the
giving of any notice as a result of any such breach or default or taking
possession of and foreclosing against the Collateral. The non-defaulting party
shall be entitled to recover its attorney's fees and costs whether or not it
actually files litigation against the defaulting party.

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                                 LOAN AGREEMENT
                                     PAGE 3

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         14. APPLICATION OF PAYMENTS. All sums paid by Borrower to Lender or
collected by Lender for application to the liabilities and obligations of
Borrower under this Agreement will be first applied to any costs, expenses, and
fees, including attorney's fees, which may be owing under the terms of this
Agreement, and then to any interest or late fees which may be due and owing
pursuant to the terms of this Agreement, and then to reduce the principal
balance owing.

         15. LATE PAYMENTS. It is specifically agreed that late payments
accepted by Lender will not operate to change or modify any of the due dates or
other payments due from Borrower to Lender. The Borrower shall be entitled to
recover such late fees as are provided for in the Note.

         16. NO ASSIGNMENT. This Agreement is not assignable by Borrower.

         17. STIPULATIONS. Borrower and Lender agree that the proceeds of this
Loan will be used to satisfy the Secondary Capital Contributions required, as of
the date hereof, of Borrower under Section 3.3 of the Operating Agreement (the
"Operating Agreement") for Crown Asphalt Ridge, L.L.C. ("CAR") dated as of
August 1, 1997. Upon transfer of the loan proceeds to, or payment of such
proceeds on behalf of, CAR (the "CONTRIBUTION"), Borrower shall have a 25%
Sharing Ratio and MCNIC shall have a 75% Sharing Ratio in CAR. Of course,
additional capital contributions may be required in the future as otherwise
provided under the Operating Agreement.

         Effective as of July 20, 1999.

BORROWER:                                LENDER:

Crown Asphalt Corporation, a Utah        MCNIC Pipeline & Processing Company, a
corporation                              Michigan corporation

By:                                     By:
   -------------------------------         ------------------------------
Jay Mealey, President

                                        Title:
                                              ---------------------------

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                                 LOAN AGREEMENT
                                     PAGE 4<PAGE>

                                 PROMISSORY NOTE

            FOR VALUE RECEIVED, the undersigned, Crown Asphalt Corporation, a
Utah corporation (hereinafter called "Borrower"), gives this promissory note
(the "Note") and promises to pay to the order of MCNIC Pipeline & Processing
Company, a Michigan corporation (hereinafter called "Lender"), the principal sum
of Two Million Nine Hundred Ninety One Thousand Eight Hundred Sixty Eight
Dollars and Sixty Six Cents ($2,991,868.66), together with interest at the
"Prime Rate" as published in the Wall Street Journal plus 1% per annum (the
"Note Rate") adjusted monthly on the first of each month to reflect any changes
in the Prime Rate.

            1. AMOUNT AND PLACE OF PAYMENTS. (a) Beginning on September 20,
1999, and continuing on the 20th day of each month through and including July
20, 2001 (hereinafter called the "Interest Only Period"), the Borrower shall
make monthly payments of $20,757.14 which sum is anticipated to pay interest
only. If the amount of such payment is greater than the actual accrued interest,
the excess will be applied to principal. On each August 20, November 20,
February 20, and May 20 during the Interest Only Period, the Borrower will make
additional payments as may be necessary to bring interest current. In the year
2001, the Borrower will pay interest current on July 20, and then, beginning on
August 20, 2001 and continuing on the 20th day of each month thereafter, the
Borrower will make payments of principal and interest in order to amortize the
principal balance over 13 years. The amount of the monthly payments will be
established based on the principal balance and interest rate in effect on July
20, 2001. For the remainder of the Note, each time the Note Rate changes the
principal balance may, at the option of either the Borrower or the Lender, be
re-amortized and a new monthly payment amount established (for the balance of
the 13 years). The Payments will be applied as provided in this Note. All
payments are to be made or given to Lender at 150 West Jefferson, Suite 1700,
Detroit, Michigan 48226.

         (b) Notwithstanding the terms of Section 1(a), the Interest Only Period
shall be extended until July 20, 2004, and the remaining terms of Section 1(a)
will be modified appropriately if Borrower and Lender mutually agree that the
Initial Plant (as defined in Operating Agreement for Crown Asphalt Ridge LLC
dated as of August 1, 1997, between Borrower and Lender) will never be able to
operate commercially.

            2. ADDITIONAL PAYMENTS. Notwithstanding anything in Section 1 to the
contrary, the Borrower shall make additional debt service payments (i.e.,
payments to reduce the principal balance) during the Interest Only Period to the
extent the Borrower has "Total Cash Available to Reduce Principal" from its 1999
and 2000 (and 2001, 2002 and 2003 if the mutual agreement specified in Section
1(b) is reached) operations. For purposes of this agreement, "Total Cash
Available to Reduce Principal" shall be determined based upon the Borrower's
audited financial statements for 1999 and 2000 (and 2001, 2002 and 2003, if
applicable) using the following formula: Net Income (a) plus the sum of: (i)
depreciation, (ii) amortization, (iii) interest expense on all debt, (iv)

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prepaid expenses; and (v) distributions paid and (b) minus the sum of (i)
principal reduction on all debt paid as scheduled and (ii) interest expense on
all debt. The Borrower shall pay the Total Cash Available to Reduce Principal to
the Lender. The debt service payments shall be made within 15 days after the
audited financial statements are completed by the Borrower's auditors.

            3. RIGHT TO PREPAY. The Borrower shall have the right to prepay or
make additional cash payments at any time, without penalty, but such additional
cash payments shall not relieve the Borrower's obligation to make timely monthly
payments each month as required hereunder.

            4. ADDITIONAL TERMS AND CONDITIONS. This note is issued pursuant to
the provisions of a Loan Agreement of even date herewith (the "Loan Agreement").
The Loan Agreement is, by this reference, incorporated herein and made a part
hereof. A default under the Loan Agreement shall also be a default under this
Note.

            5. LATE CHARGE. A late charge of five percent (5%) of any unpaid
payment amount may be collected by Lender for any payment (including an interest
only payment) that is not made within ten (10) days of the due date of such
payment. In the event the Lender accelerates this Note as permitted herein or
this Note is not paid at maturity, interest will accrue at a lesser of five
percent (5%) above the interest rate otherwise due or the highest interest rate
permitted under the laws of the State of Utah. In the event of default for which
the Lender does not accelerate this Note, including the failure of Borrower to
provide the financial statements as required under the Loan Agreement, the
applicable interest rate on this Note, for a period beginning ten (10) days
after written notice of such default and ending upon the curing of said noticed
default, shall increase one quarter of one percent (.25%) for the first 30 days
of said default and increase an additional one quarter of one percent (.25%)
during each 30 day period thereafter during which the noticed default continues.
Such default interest rates shall apply to the outstanding principal balance of
this Note. Upon the curing of the noticed default, the interest rate of this
Note shall revert to the initially agreed-upon interest rate effective on the
date on which the default is cured. Such late fees and default interest shall be
assessable without any prior notice by the holder to the Borrower that a payment
is late.

            6. APPLICATION OF PAYMENTS. All payments on account of this Note
shall first be applied to the payment of any late fees, costs, fees (including
attorneys' fees), and charges; second, to accrued and unpaid interest; and
third, to the reduction of principal.

            7. DEFAULT. The occurrence of an Event of Default under the Loan
Agreement will constitute a default under this Note.

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                                PROMISSORY NOTE
                                      -2-
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            8. ACCELERATION. In the event this Note shall be in default, the
Lender may declare the entire unpaid balance of this Note, together with
interest accrued thereon and other charges as provided for in this Note, to be
immediately due and payable and may proceed to exercise any rights or remedies
that the Lender may have under this Note, the Loan Agreement, or such other
rights and remedies which the holder may have at law or in equity.

            9. REMEDIES CUMULATIVE. The Lender is not required to first proceed
against any collateral for payment of this Note. All remedies conferred by this
Note, or by the Loan Agreement, shall be cumulative, and none is exclusive.

            10. ATTORNEY'S FEES. In the event of a default or breach of this
Note, the Borrower agrees to pay and be responsible for all reasonable
attorney's fees and/or costs of collection or enforcement incurred by the Lender
as a result of such default, including, without limitation, any attorneys fees
incurred in the giving of any notice as a result of any such breach or default,
and further including, without limitation, any attorneys fees incurred by Lender
in taking possession of and foreclosing against any collateral. The Lender shall
be entitled to recover its attorney's fees and costs whether or not it actually
files litigation against the Borrower. Such fees and costs shall be due and
payable immediately on the Lender's demand.

            11. WAIVER OF PRESENTMENT. Except as otherwise provided herein,
presentment or other demand for payment, notice of dishonor, and protest are
hereby expressly waived by the undersigned.

                  DATED July 20, 1999.

BORROWER:

Crown Asphalt Corporation, a Utah corporation

By:
   --------------------------------------
Jay Mealey, President

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                                PROMISSORY NOTE
                                      -3-

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