Document:

NOTE
      PURCHASE AGREEMENT

     

    This
      Note
      Purchase Agreement, dated as of June 11, 2007, (this “Agreement”)
      is
      entered into by and among Radial Energy Inc., a Nevada corporation (the
“Company”),
      and
      Coach Capital LLC (“Investor”).
      This
      Agreement amends and restates in full that certain Loan Agreement, dated as
      of
      May 24, 2007, by and between the Company and Investor (the “Prior
      Loan Agreement”),
      effective upon the execution of this Agreement by the parties
      hereto.

     

    RECITALS
      

     

    A. On
      the
      terms and subject to the conditions set forth herein, Investor is willing to
      purchase from the Company, and the Company is willing to sell to Investor,
      convertible promissory notes in the aggregate principal amount of
      $1,400,000.

     

    B. Capitalized
      terms not otherwise defined herein shall have the meaning set forth in the
      form
      of Note (as defined below) attached hereto as Exhibit A.
      

     

    AGREEMENT
      

     

    NOW
      THEREFORE, in consideration of the foregoing, and the representations,
      warranties, and conditions set forth below, the parties hereto, intending to
      be
      legally bound, hereby agree as follows:

     

    1.  The
      Notes.

     

    (a)  Issuance
      of Notes.
      The
      Company agrees to issue and sell to Investor, and, subject to all of the terms
      and conditions hereof, Investor agrees to purchase convertible promissory notes
      in substantially the form of Exhibit A
      hereto
      (each, a “Note,”
and
      collectively, the “Notes”)
      in the
      aggregate principal amount of $1,400,000 (the “Purchase
      Price”).

     

    (b)  Delivery.
      The
      sale and purchase of the Notes shall take place in two separate closings (each,
      a “Closing”)
      to be
      held at such place and time as the Company and Investor may determine (each,
      a
“Closing
      Date”).
      At
      the initial Closing (the “Initial
      Closing”),
      the
      Company will deliver to Investor a Note in the principal amount of $1,200,000
      to
      be purchased by such Investor, against receipt by the Company of $1,200,000
      of
      the Purchase Price, and at the second Closing (the “Second
      Closing”),
      the
      Company will deliver to Investor a Note in the principal amount of $200,000.
      The
      Notes will be registered in Investor’s name in the Company’s
      records.

     

    (c)  Commitment
      and Structuring Fee.
      The
      Company agrees to pay to Investor a commitment and structuring fee equal to
      $210,000. The commitment and structuring shall be payable in installments of
      $7,500 beginning on the last business day of each month commencing on September,
      2007 and continuing until the time all of the fee have been paid in full. Upon
      the full payment of all of the Notes issued pursuant to this Agreement by the
      Company, any remaining balance of the commitment and restructuring fee shall
      become immediately due and payable. Notwithstanding the foregoing, the Company
      shall have the option to pay all or any of the commitment and structuring fee
      at
      any time in advance of the foregoing schedule. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  Piggyback
      Registration Rights.
      If the
      Company shall determine to register any of its securities either for its own
      account or the account of a security holder or holders, other than a
      registration relating solely to employee benefit plans, a registration relating
      to the offer and sale of debt securities, a registration relating to a corporate
      reorganization or other Rule 145 transaction, or a registration on any
      registration form that does not permit secondary sales, the Company will: (i)
      promptly give written notice of the proposed registration to Investor; and
      (ii)
      use its commercially reasonable efforts to include in such registration any
      of
      the common stock that have been issued to Investor from the conversion of any
      Note as specified in a written request or requests made by
      Investor.

     

    2.  Representations
      and Warranties of the Company.
      The
      Company represents and warrants to Investor that:

     

    (a)  Due
      Incorporation, Qualification, etc.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of its state of incorporation.

     

    (b)  Authority.
      The
      execution, delivery and performance by the Company of each Transaction Document
      to be executed by the Company and the consummation of the transactions
      contemplated thereby (i) are within the power of the Company and
      (ii) have been duly authorized by all necessary actions on the part of the
      Company.

     

    (c)  Enforceability.
      Each
      Transaction Document executed, or to be executed, by the Company has been,
      or
      will be, duly executed and delivered by the Company and constitutes, or will
      constitute, a legal, valid and binding obligation of the Company, enforceable
      against the Company in accordance with its terms, except as limited by
      bankruptcy, insolvency or other laws of general application relating to or
      affecting the enforcement of creditors’ rights generally and general principles
      of equity.

     

    3.  Representations
      and Warranties of Investor.
      Investor
      represents and warrants to the Company upon the acquisition of each Note as
      follows:

     

    (a)  Binding
      Obligation.
      Investor has full legal capacity, power and authority to execute and deliver
      this Agreement and to perform its obligations hereunder. Each of this Agreement
      and each Note issued to Investor is a valid and binding obligation of the
      Investor, enforceable in accordance with its terms, except as limited by
      bankruptcy, insolvency or other laws of general application relating to or
      affecting the enforcement of creditors’ rights generally and general principles
      of equity.

     

    (b)  Securities
      Law Compliance.
      Investor has been advised that the Notes and the underlying securities have
      not
      been registered under the Securities Act, or any state securities laws and,
      therefore, cannot be resold unless they are registered under the Securities
      Act
      and applicable state securities laws or unless an exemption from such
      registration requirements is available. Such Investor is aware that the Company
      is under no obligation to effect any such registration with respect to the
      Notes
      or the underlying securities. Such Investor has not been formed solely for
      the
      purpose of making this investment and is purchasing the Notes hereunder for
      its
      own account for investment, not as a nominee or agent, and not with a view
      to,
      or for resale in connection with, the distribution thereof. Investor has such
      knowledge and experience in financial and business matters that Investor is
      capable of evaluating the merits and risks of such investment, is able to incur
      a complete loss of such investment and is able to bear the economic risk of
      such
      investment for an indefinite period of time. Investor is an accredited investor
      as such term is defined in Rule 501 of Regulation D under the
      Securities Act.

     

    
      
        
        

      

      
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    (c)  Access
      to Information.
      Investor acknowledges that the Company has given Investor access to the
      corporate records and accounts of the Company and to all information in its
      possession relating to the Company, has made its officers and representatives
      available for interview by Investor, and has furnished Investor with all
      documents and other information required for Investor to make an informed
      decision with respect to the purchase of the Notes.

     

    4.  Conditions
      to Closing of the Investor.
      Investor’s obligations at the Closing are subject to the fulfillment, on or
      prior to the Closing Date, of all of the following conditions, any of which
      may
      be waived in whole or in part by Investor:

     

    (a)  Representations
      and Warranties.
      The
      representations and warranties made by the Company in Section 2
      hereof
      shall have been true and correct when made, and shall be true and correct on
      the
      Closing Date. 

     

    (b)  Governmental
      Approvals and Filings.
      Except
      for any notices required
      or
      permitted to be filed after the Closing Date with certain federal and state
      securities commissions, the Company shall have obtained all governmental
      approvals required in connection with the lawful sale and issuance of the
      Note.

     

    (c)  Legal
      Requirements.
      At the
      Closing, the sale and issuance by the Company, and the purchase by Investor,
      of
      the Note shall be legally permitted by all laws and regulations to which
      Investor or the Company are subject.

     

    (d)  Proceedings
      and Documents.
      All
      corporate and other proceedings in connection with the transactions contemplated
      at the Closing and all documents and instruments incident to such transactions
      shall be reasonably satisfactory in substance and form to Investor.

     

    (e)  Transaction
      Documents.
      The
      Company shall have duly executed and delivered to Investor this
      Agreement and the Note.

     

    5.  Conditions
      to Obligations of the Company.
      The
      Company’s obligation to issue and sell the Note at the Closing is subject to the
      fulfillment, on or prior to the Closing Date, of the following conditions,
      any
      of which may be waived in whole or in part by the Company:

     

    (a)  Representations
      and Warranties.
      The
      representations and warranties made by Investor in Section 3
      hereof
      shall be true and correct when made, and shall be true and correct on the
      Closing Date.

     

    
      
        
        

      

      
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    (b)  Governmental
      Approvals and Filings.
      Except
      for any notices required or permitted to be filed after the Closing Date with
      certain federal and state securities commissions, the Company shall have
      obtained all governmental approvals required in connection with the lawful
      sale
      and issuance of the Note.

     

    (c)  Legal
      Requirements.
      At the
      Closing, the sale and issuance by the Company, and the purchase by Investor,
      of
      the Note shall be legally permitted by all laws and regulations to which
      Investor or the Company are subject.

     

    (d)  Purchase
      Price.
      Investor shall have delivered to the Company the Purchase Price in respect
      of
      the Note.

     

    (e)  Original
      Notes.
      With
      respect to the Initial Closing only, the Company shall have the original notes
      issued to Investor in the aggregate principal amount of $1,200,000 pursuant
      to
      the Prior Loan Agreement in its possession for cancellation.

     

    6.  Miscellaneous.

     

    (a)  Waivers
      and Amendments.
      Any
      provision of this Agreement may be amended, waived or modified only upon the
      written consent of the Company and Investor.

     

    (b)  Governing
      Law.
      This
      Agreement and all actions arising out of or in connection with this Agreement
      shall be governed by and construed in accordance with the laws of the State
      of
      Nevada, without regard to the conflicts of law provisions of the State of Nevada
      or of any other state.

     

    (c)  Survival.
      The
      representations, warranties, covenants and agreements made herein shall survive
      the execution and delivery of this Agreement.

     

    (d)  Successors
      and Assigns.
      Subject
      to the restrictions on transfer described in Sections 6(e)
      and 6(f) below,
      the rights and obligations of the Company and Investor shall be binding upon
      and
      benefit the successors, assigns, heirs, administrators and transferees of the
      parties.

     

    (e)  Registration,
      Transfer and Replacement of the Notes.
      The
      Company will keep, at its principal executive office, books for the registration
      and registration of transfer of the Note and any replacement notes. Prior to
      presentation of any Note for registration of transfer, the Company shall treat
      the Person in whose name such Note is registered as the owner and holder of
      such
      Note for all purposes whatsoever, whether or not such Note shall be overdue,
      and
      the Company shall not be affected by notice to the contrary. Subject to any
      restrictions on or conditions to transfer set forth in any Note, the holder
      of
      any Note, at its option, may in person or by duly authorized attorney surrender
      the same for exchange at the Company’s chief executive office, and promptly
      thereafter and at the Company’s expense, except as provided below, receive in
      exchange therefor one or more new Note(s), each in the principal requested
      by
      such holder, dated the date to which interest shall have been paid on the Note
      so surrendered or, if no interest shall have yet been so paid, dated the date
      of
      the Note so surrendered and registered in the name of such Person or Persons
      as
      shall have been designated in writing by such holder or its attorney for the
      same principal amount as the then unpaid principal amount of the Note so
      surrendered. Upon receipt by the Company of evidence reasonably satisfactory
      to
      it of the ownership of and the loss, theft, destruction or mutilation of any
      Note and (a) in the case of loss, theft or destruction, of indemnity
      reasonably satisfactory to it; or (b) in the case of mutilation, upon
      surrender thereof, the Company, at its expense, will execute and deliver in
      lieu
      thereof a new Note executed in the same manner as the Note being replaced,
      in
      the same principal amount as the unpaid principal amount of such Note and dated
      the date to which interest shall have been paid on such Note or, if no interest
      shall have yet been so paid, dated the date of such Note.

     

    
      
        
        

      

      
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    (f)  Assignment
      by the Company.
      The
      rights, interests or obligations hereunder may not be assigned, by operation
      of
      law or otherwise, in whole or in part, by the Company without the prior written
      consent of Investor.

     

    (g)  Entire
      Agreement.
      This
      Agreement together with the other Transaction Documents constitute and contain
      the entire agreement among the Company and Investors and supersede any and
      all
      prior agreements, negotiations, correspondence, understandings and
      communications among the parties, whether written or oral, respecting the
      subject matter hereof.

     

    (h)  Notices.
      All
      notices, requests, demands, consents, instructions or other communications
      required or permitted hereunder shall in writing and faxed, mailed or delivered
      to each party as follows: (i) if to Investor, at EPS-D (2016), P.O. Box
      02-5548, Miami, Florida 33102, facsimile number (713) 353-4601, or at such
      other
      address as Investor shall have furnished the Company in writing, or (ii) if
      to the Company, at 1200 Smith Street, Suite 1600, Two Allen Center Building,
      Houston, Texas 77002, facsimile number (702) 973-1853, or at such other address
      or facsimile number as the Company shall have furnished to Investor in writing.
      All such notices and communications will be deemed effectively given the earlier
      of (i) when received, (ii) when delivered personally, (iii) one
      business day after being delivered by facsimile (with receipt of appropriate
      confirmation), (iv) one business day after being deposited with an
      overnight courier service of recognized standing or (v) four days after
      being deposited in the U.S. mail, first class with postage prepaid.

     

    (i)  Severability
      of this Agreement.
      If any
      provision of this Agreement shall be judicially determined to be invalid,
      illegal or unenforceable, the validity, legality and enforceability of the
      remaining provisions shall not in any way be affected or impaired
      thereby.

     

    (j)  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed an original, but all of which together will constitute one and the same
      agreement. Facsimile copies of signed signature pages will be deemed binding
      originals.

     

    [Signature
      Page Follows] 

     

    
      
        
        

      

      
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    The
      parties have caused this Agreement to be duly executed and delivered by their
      proper and duly authorized officers as of the date and year first written
      above.

     

    COMPANY:

     

    RADIAL
      ENERGY INC.

    a
      Nevada
      corporation

     

    By:
      /s/ G. Leigh
      Lyons                                                        

    Name:
      G.
      Leigh Lyons

    Title:
      President, CEO and CFO

     

    INVESTOR

     

    COACH
      CAPITAL LLC

     

    By:
      /s/ Michael
      Laidlaw                                                      

    Name:
      Michael
      Laidlaw                                                     
 

    Title:
      Secretary

     

     

     

     

    [Signature
      page for Note Purchase
      Agreement]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    FORM
      OF CONVERTIBLE NOTETHIS
      NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF
      COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    RADIAL
      ENERGY INC.

     

    SECURED
      CONVERTIBLE PROMISSORY NOTE

     

    
      	
              $1,200,000

            	
              June
                11, 2007

            
	 	 
	 	
              Houston,
                Texas

            

    

     

    FOR
      VALUE
      RECEIVED, Radial Energy Inc., a Nevada corporation (the “Company”),
      promises to pay to Coach Capital LLC (“Investor”),
      or
      its registered assigns, in lawful money of the United States of America the
      principal sum of One Million Two Hundred Thousand Dollars ($1,200,000), or
      such
      lesser amount as shall equal the outstanding principal amount hereof, together
      with interest from the date of this Note on the unpaid principal balance as
      set
      forth in Section 2 herein. All unpaid principal, and any then unpaid and accrued
      interest, shall be due and payable on the dates and in the amounts set forth
      below. This Note is issued pursuant to the Note Purchase Agreement dated June
      11, 2007 (as amended, modified or supplemented, the “Note
      Purchase Agreement”)
      between the Company and the Investor and replaces the two notes previously
      issued to Investor in the aggregate principal amount of $1,200,000 pursuant
      to
      the Prior Loan Agreement (as defined in the Note Purchase
      Agreement).

     

    The
      following is a statement of the rights of Investor and the conditions to which
      this Note is subject, and to which Investor, by the acceptance of this Note,
      agrees:

     

    1.  Definitions.
      As used
      in this Note, the following capitalized terms have the following
      meanings:

     

    (a)  
      the
“Company”
      includes the corporation initially executing this Note and any Person which
      shall succeed to or assume the obligations of the Company under this
      Note.

     

    (b)  “Event
      of Default”
has
      the
      meaning given in Section 4
      hereof.

     

    (c)  “Investor”
shall
      mean the Person specified in the introductory paragraph of this Note or any
      Person who shall at the time be the registered holder of this Note.

     

    (d)  “Note
      Purchase Agreement”
has
      the
      meaning given in the introductory paragraph hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)  “Obligations”
shall
      mean and include all loans, advances, debts, liabilities and obligations,
      howsoever arising, owed by the Company to Investor of every kind and description
      (whether or not evidenced by any note or instrument and whether or not for
      the
      payment of money), now existing or hereafter arising under or pursuant to the
      terms of this Note and the Note Purchase Agreement including, all interest,
      fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and
      costs chargeable to and payable by the Company hereunder and thereunder, in
      each
      case, whether direct or indirect, absolute or contingent, due or to become
      due,
      and whether or not arising after the commencement of a proceeding under
      Title 11 of the United States Code (11 U. S. C. Section 101
et
      seq.),
      as
      amended from time to time (including post-petition interest) and whether or
      not
      allowed or allowable as a claim in any such proceeding.

     

    (f)  “Person”
shall
      mean and include an individual, a partnership, a corporation (including a
      business trust), a joint stock company, a limited liability company, an
      unincorporated association, a joint venture or other entity or a governmental
      authority.

     

    (g)  “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    (h)  “Transaction
      Documents”
shall
      mean Note Purchase Agreement and any notes issued pursuant thereto, including
      this Note.

     

    2.  Payment
      of Principal and Interest.

     

    (a)  The
      principal amount of this Note shall be payable in twenty-eight (28) consecutive
      monthly payments, and each of the first 27 payments shall be in the amount
      of
      Forty-Two Thousand Five Hundred Dollars ($42,500) and the last payment, the
      28th
      payment,
      shall be in the amount of Fifty-Two Thousand Five Hundred Dollars ($52,500).
      Each payment shall be payable on the last business day of each month commencing
      on September, 2007 and continuing until the time all outstanding principal
      and
      accrued and unpaid interest have been paid in full (the “Maturity
      Date”).
      Notwithstanding the foregoing, the principal balance outstanding under this
      Note, together with accrued and unpaid interest thereon, shall be payable on
      demand by Investor at any time on or after the closing of a financing by the
      Company of a minimum of $6,000,000 after the date of this Note. Upon such demand
      by Investor, the Company shall have 15 business days to pay the outstanding
      balance under the Note, and if such payment is not timely made, the Company
      shall pay Investor liquidated damages equal to 25% of the Purchase Price (as
      defined in the Note Purchase Agreement).

     

    (b)  Interest
      on this Note shall accrue at a rate equal to 2.00% per month, computed on the
      basis of the actual number of days elapsed, and payable monthly on the last
      business day of each month commencing on June, 2007 until the principal balance
      outstanding under this Note is paid off or the obligations thereof otherwise
      terminated. 

     

    3.  Prepayment.
      The
      Company may prepay this Note in whole or in part without penalty.

     

    4.  Events
      of Default.
      The
      occurrence of any of the following shall constitute an “Event
      of Default”
under
      this Note and the other Transaction Documents:

     

    
      
         

      

      
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    (a)  Failure
      to Pay.
      The
      Company shall fail to pay when due any principal or interest payment on the
      due
      dates set forth in Section
      2 above;
      or

     

    (b)  Voluntary
      Bankruptcy or Insolvency Proceedings. The
      Company shall (i) apply for or consent to the appointment of a receiver,
      trustee, liquidator or custodian of itself or of all or a substantial part
      of
      its property, (ii) be unable, or admit in writing its inability, to pay its
      debts generally as they mature, (iii) make a general assignment for the
      benefit of its or any of its creditors, (iv) be dissolved or liquidated,
      (v) become insolvent (as such term may be defined or interpreted under any
      applicable statute), (vi) commence a voluntary case or other proceeding
      seeking liquidation, reorganization or other relief with respect to itself
      or
      its debts under any bankruptcy, insolvency or other similar law now or hereafter
      in effect or consent to any such relief or to the appointment of or taking
      possession of its property by any official in an involuntary case or other
      proceeding commenced against it, or (vii) take any action for the purpose
      of effecting any of the foregoing; or

     

    (c)  Involuntary
      Bankruptcy or Insolvency Proceedings. Proceedings
      for the appointment of a receiver, trustee, liquidator or custodian of the
      Company or of all or a substantial part of the property thereof, or an
      involuntary case or other proceedings seeking liquidation, reorganization or
      other relief with respect to the Company or the debts thereof under any
      bankruptcy, insolvency or other similar law now or hereafter in effect shall
      be
      commenced and an order for relief entered or such proceeding shall not be
      dismissed or discharged within 30 days of commencement.

     

    5.  Rights
      of Investor upon Default.
      Upon
      the occurrence of an Event of Default described in Section
      4(a)
      above,
      then a default fee equal to 1.0% of the then outstanding principal balance
      shall
      be accrued to the outstanding principal amount. This default fee shall accrue
      monthly until such Event of Default is cured by the Company or otherwise waived
      by Investor. Upon the occurrence of any Event of Default described in
Sections 4(b)
      and
4(c), immediately
      and without notice, all outstanding Obligations payable by the Company hereunder
      shall automatically become immediately due and payable, without presentment,
      demand, protest or any other notice of any kind, all of which are hereby
      expressly waived. In addition to the foregoing remedies, upon the occurrence
      or
      existence of any Event of Default, Investor may exercise any other right power
      or remedy granted to it by the Transaction Documents or otherwise permitted
      to
      it by law, either by suit in equity or by action at law, or both.

     

    6.  Conversion.

     

    (a)  Optional
      Conversion All
      or a
      portion of the outstanding principal amount of this Note shall be convertible
      at
      the option of the Investor into that number of shares of the Company’s Common
      Stock as is determined by dividing such principal amount by the lower of (i)
      $1.0536 per share or (ii) 90% of the lowest daily weighted average price during
      the fifteen (15) trading days immediately prior to the conversion date. The
      conversion price shall be adjusted to reflect subsequent stock dividends, stock
      splits, combinations or recapitalizations. Before Investor shall be entitled
      to
      convert this Note into shares of Common Stock under this Section
      6(a),
      the
      Company shall have paid off all of its obligations under the convertible
      debentures issued to Cornell Capital Partners, and Investor shall surrender
      this
      Note, duly endorsed, at the office of the Company and shall give written notice
      to the Company at its principal corporate office, of the election to convert
      the
      same pursuant to this Section, and shall state therein the amount of the unpaid
      principal amount of this Note to be converted and the name or names in which
      the
      certificate or certificates for shares of Common Stock are to be issued. The
      Company shall, as soon as practicable thereafter, issue and deliver at such
      office to Investor a certificate or certificates for the number of shares of
      Common Stock to which Investor shall be entitled upon conversion (bearing such
      legends as are required by the Note Purchase Agreement and applicable state
      and
      federal securities laws in the opinion of counsel to the Company, together
      with
      a replacement Note if any principal amount is not converted. The conversion
      shall be deemed to have been made immediately prior to the close of business
      on
      the date of the surrender of this Note, and the Person or Persons entitled
      to
      receive the shares of Common Stock upon such conversion shall be treated for
      all
      purposes as the record Investor or Investors of such shares of Common Stock
      as
      of such date.

     

    
      
         

      

      
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    (b)  Fractional
      Shares; Interest; Effect of Conversion. No
      fractional shares shall be issued upon conversion of this Note. In lieu of
      the
      Company issuing any fractional shares to Investor upon the conversion of this
      Note, the Company shall pay to Investor an amount equal to the product obtained
      by multiplying the conversion price by the fraction of a share not issued
      pursuant to the previous sentence. In addition, the Company shall pay to
      Investor any interest accrued on the amount converted and on the amount to
      be
      paid to the Company pursuant to the previous sentence. Upon conversion of this
      Note in full and the payment of any amounts specified in this Section 6(b),
      the
      Company shall be forever released from all its obligations and liabilities
      under
      this Note

     

    7.  Successors
      and Assigns.
      Subject
      to the restrictions on transfer described in Sections 9
      and
10
      below,
      the rights and obligations of the Company and Investor shall be binding upon
      and
      benefit the successors, assigns, heirs, administrators and transferees of the
      parties.

     

    8.  Waiver
      and Amendment.
      Any
      provision of this Note may be amended, waived or modified upon the written
      consent of the Company and Investor.

     

    9.  Transfer
      of this Note or Securities Issuable on Conversion
      Hereof.
      With
      respect to any offer, sale or other disposition of this Note or securities
      into
      which such Note may be converted, Investor will give written notice to the
      Company prior thereto, describing briefly the manner thereof, together with
      a
      written opinion of Investor’s counsel, or other evidence if reasonably
      satisfactory to the Company, to the effect that such offer, sale or other
      distribution may be effected without registration or qualification (under any
      federal or state law then in effect). Upon receiving such written notice and
      reasonably satisfactory opinion, if so requested, or other evidence, the
      Company, as promptly as practicable, shall notify Investor that Investor may
      sell or otherwise dispose of this Note or such securities, all in accordance
      with the terms of the notice delivered to the Company. If a determination has
      been made pursuant to this Section 9
      that the
      opinion of counsel for Investor, or other evidence, is not reasonably
      satisfactory to the Company, the Company shall so notify Investor promptly
      after
      such determination has been made. Each Note thus transferred and each
      certificate representing the securities thus transferred shall bear a legend
      as
      to the applicable restrictions on transferability in order to ensure compliance
      with the Securities Act, unless in the opinion of counsel for the Company such
      legend is not required in order to ensure compliance with the Securities Act.
      the Company may issue stop transfer instructions to its transfer agent in
      connection with such restrictions. Subject to the foregoing, transfers of this
      Note shall be registered upon registration books maintained for such purpose
      by
      or on behalf of the Company. Prior to presentation of this Note for registration
      of transfer, the Company shall treat the registered holder hereof as the owner
      and holder of this Note for the purpose of receiving all payments of principal
      and interest hereon and for all other purposes whatsoever, whether or not this
      Note shall be overdue and the Company shall not be affected by notice to the
      contrary.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    10.  Assignment
      by the Company.
      Neither
      this Note nor any of the rights, interests or obligations hereunder may be
      assigned, by operation of law or otherwise, in whole or in part, by the Company
      without the prior written consent of Investor.

     

    11.  Notices.
      All
      notices, requests, demands, consents, instructions or other communications
      required or permitted hereunder shall in writing and faxed, mailed or delivered
      to each party at the respective addresses of the parties as set forth in the
      Note Purchase Agreement, or at such other address or facsimile number as the
      Company shall have furnished to Investor in writing. All such notices and
      communications will be deemed effectively given the earlier of (i) when
      received, (ii) when delivered personally, (iii) one business day after
      being delivered by facsimile (with receipt of appropriate confirmation),
      (iv) one business day after being deposited with an overnight courier
      service of recognized standing or (v) four days after being deposited in
      the U.S. mail, first class with postage prepaid.

     

    12.  Security
      Interest.
      The
      payment, performance and satisfaction of the Company’s obligations under this
      Note are secured by all of the Company’s interest in the Huaya Anticline
      Project, located in Block 100, Loreto Department, Peru, pursuant to the Joint
      Operating Agreement dated May 11, 2006 by and among Compania Consultora de
      Petroleo, Ziegler-Peru, Inc., and the Company. Upon the occurrence of an Event
      of Default, the Company agrees that all of the revenue it receives from the
      Huaya Anticline Project shall be forwarded to Investor until the Event of
      Default is cured. The security interest shall be without prejudice to the
      provisions of the Joint Operating Agreement and subordinated to the rights
      of
      the other parties to the Joint Operating Agreement. 

     

    13.  Usury.
      In the
      event any interest is paid on this Note which is deemed to be in excess of
      the
      then legal maximum rate, then that portion of the interest payment representing
      an amount in excess of the then legal maximum rate shall be deemed a payment
      of
      principal and applied against the principal of this Note.

     

    14.  Waivers.
      The
      Company hereby waives notice of default, presentment or demand for payment,
      protest or notice of nonpayment or dishonor and all other notices or demands
      relative to this instrument.

     

    15.  Governing
      Law.
      This
      Note and all actions arising out of or in connection with this Note shall be
      governed by and construed in accordance with the laws of the State of Nevada,
      without regard to the conflicts of law provisions of the State of Nevada, or
      of
      any other state.

     

    [Signature
      Page Follows]

     

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    The
      Company has caused this Note to be issued as of the date first written
      above.

     

    
      	 	
              RADIAL
                ENERGY INC.

              a
                Nevada corporation

               

              By:
                /s/ G. Leigh Lyons

               

              Name:
                G. Leigh Lyons

               

              Title:
                President, CEO and CFO

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