Document:

EXHIBIT 10.31

                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT  ("Agreement") is made and entered into as of August 8,
2001, by and between WILHELM MORTUARY, INC., an Oregon corporation ("Borrower"),
and GREEN  LEAF  INVESTORS  I,  LLC,  a  California  limited  liability  company
("Lender").

                                     Recital

     Borrower  has  requested  from  Lender the  $1,575,000.00  credit  facility
described  herein,  and Lender has agreed to provide  such  credit  facility  to
Borrower subject,  however, to Lender receiving, as security therefore,  certain
Collateral  (defined  herein) and further  subject to the terms,  conditions and
provisions set forth in this Agreement.

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

     1.  Definitions.  As used in this  Agreement,  terms with initial  capitals
shall have the meanings given below, or as otherwise defined herein. Capitalized
terms used but not otherwise  defined in this Agreement  shall have the meanings
given them in the Note (as defined below).

          "Agreement"  means  this  Loan  Agreement  and  all  modifications  or
amendments hereto, or extensions hereof.

          "Assignment"  means that certain  Assignment  of even date herewith by
The  Neptune  Society,  Inc.,  a Florida  corporation,  and  Neptune  Society of
America, Inc., a California corporation, to Borrower.

          "Bankruptcy  Code" means the  Bankruptcy  Reform Act,  Title 11 of the
United  States  Code,  as amended  or  recodified  from time to time,  including
(unless the context  otherwise  requires) any rules or  regulations  promulgated
thereunder.

          "Borrower's  Financial  Statements" means all financial  statements of
Borrower and any Guarantor delivered from time to time to Lender.

          "Business  Day" means any day other than a  Saturday,  Sunday or other
day on which  commercial  banks are authorized or required to close in Portland,
Oregon.

          "Cash Loan Fee" means $75,000.

          "Closing  Date"  shall  mean the date on which the Loan is closed  and
funded.

          "Collateral"  shall mean the  Property  as such term is defined in the
Trust Deed and the Personal  Property  Collateral as such term is defined in the
General Security Agreement.

          "Common  Stock" means  shares of common stock of The Neptune  Society,
Inc. par value $0.002 per share.

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          "Default"  means an Event of  Default  (defined  below) or an event or
condition,  which  with the giving of notice or the  passage  of time,  or both,
would constitute an Event of Default.

          "Disclosure Schedule" has the meaning given that term in Section 3.

          "Event of Default" has the meaning given that term in Section 7.1.

          "Financial  Statements"  means,  for  or as of the  end of the  fiscal
period specified therein, balance sheets, profit and loss statements, statements
of cash flows,  statement of capital accounts, and reconciliations of net worth,
in each  case  together  with all  notes  and  schedules  thereto,  prepared  in
reasonable  detail  and  in  accordance  with  generally   accepted   accounting
principles  applied  consistently  with past periods,  as fairly  presenting the
financial  condition,  results  of  operations,  and  changes in  Borrower's  or
Guarantors' financial position, as the case may be.

          "Forbearance  Agreement" means that certain  Forbearance  Agreement of
even  date  herewith  by and  between  The  Neptune  Society,  Inc.,  a  Florida
corporation  ("Neptune"),  and Community  Memorial  Centers,  L.L.C.,  an Oregon
limited  liability  company ("CMC"),  whereby Borrower agrees to bring current a
Convertible  Debenture dated July 5, 2000 issued by Neptune to CMC (the "Neptune
Debenture"), and CMC conditionally agrees to forbear legal action on the debt.

          "GAAP" means generally accepted accounting  principles as in effect in
the United States from time to time, consistently applied.

          "General  Security  Agreement"  means that  certain  General  Security
Agreement of even date  herewith,  made by Borrower in favor of Lender  granting
Lender a security interest in all equipment,  inventory,  receivables,  contract
rights,  general  intangibles,  trademark  and trade  names  and other  personal
property,  tangible and  intangible,  of Borrower,  including  all assets of the
businesses known as "Wilhelm Mortuary",  "Heritage Memorial Society" and "Oregon
Cremation Company".

          "Guarantors" means, jointly and severally,  The Neptune Society, Inc.,
a Florida  corporation,  and Neptune  Society of  America,  Inc.,  a  California
corporation.

          "Guaranty"  means  each of  those  certain  guaranties  of  even  date
herewith made by a Guarantor in favor of Lender which guarantees the obligations
evidenced  by the Note,  the  Trust  Deed,  this  Agreement  and the other  Loan
Documents delivered to Lender pursuant hereto.

          "Intercreditor  Agreement" means that certain Intercreditor  Agreement
of even date  herewith by and among  Lender,  Borrower  and  Community  Memorial
Centers,  L.L.C.,  an Oregon  limited  liability  company,  with  respect to the
Collateral.

          "Laws"  means any  federal,  state or local laws,  ordinances,  rules,
regulations or statutes, together with decisions, orders, judgments, directives,
or decrees of any governmental or regulatory authority, court, or arbitrator.

          "Loan" means a non-revolving  credit facility in the principal  amount
of $1,575,000.00 as described more fully in Section 2 hereof.

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          "Loan Costs and  Expenses"  has the meaning given that term in Section
4.11 hereof.

          "Loan  Documents"  means  this Loan  Agreement,  the  other  documents
required  to be  delivered  pursuant  to Section  5.3  hereof and all  consents,
financing statements, or other documents or instruments executed and/or filed in
connection therewith, related thereto or to the Loan.

          "Loan Put  Agreement"  means that certain  Loan Put  Agreement of even
date herewith by and among Lender,  David Schroeder  ("Schroeder"),  and Michael
Ashe  ("Ashe")  whereby  Schroeder  and Ashe agree to purchase  the Loan and the
security therefor at Lender's option upon the occurrence of a Default.

          "Maturity Date" means January 31, 2002.

          "Note"  means that  certain  $1,575,000  promissory  note of even date
herewith,  given by  Borrower  to  Lender,  and all  modifications,  amendments,
extensions or restatements thereof.

          "Note Amount" means $1,575,000.

          "Opinion  of  Counsel"  means an  opinion  letter or letters in a form
acceptable to Lender from and signed by  Borrower's  legal counsel and addressed
to Lender.

          "Permitted Encumbrances" means the encumbrances described in Exhibit A
to the Trust Deed.

          "Piggyback   Registration  Agreement"  means  that  certain  Piggyback
Registration  Agreement  of even date  herewith  by and  between  Lender and The
Neptune  Society,   Inc.,  a  Florida   corporation,   granting  Lender  certain
registration  rights with  respect to the Common  Stock of The Neptune  Society,
Inc.

          "Senior Lender" means Community  Memorial  Centers,  L.L.C., an Oregon
limited liability company.

          "Senior Loan" means the  Convertible  Debenture  issued by The Neptune
Society, Inc., a Florida corporation,  to Senior Lender, secured by a Trust Deed
dated July 5, 2000 and recorded July 18, 2000 in the Records of Multnomah County
as Fee No. 2000-098983.

          "Stock Loan Fee" means  15,789  shares of Common  Stock of The Neptune
Society, Inc., a Florida corporation.

          "Subordination   Agreements"   means   those   certain   Subordination
Agreements  of even date herewith  whereby the  Weintraub  Lenders and the CapEx
Lenders, as defined therein,  subordinate their security  interests,  if any, in
the Collateral.

          "Trust Deed" means that certain  Trust Deed,  Assignment of Leases and
Rents,  Security  Agreement  and Fixture  Filing of even date  herewith  made by
Borrower for the benefit of Lender with respect to premises located at 6637 S.E.
Milwaukie Avenue, Portland, Oregon.

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          "Unsecured  Indemnity"  means  that  certain  Unsecured  Environmental
Indemnity Agreement of even date herewith executed and delivered by Borrower and
Guarantors   indemnifying  Lender  with  respect  to  environmental  matters  in
connection with the Collateral.

          "Warrant"  means that certain  Warrant of even date herewith  granting
Lender the right to purchase up to 30,000  shares of Common Stock of The Neptune
Society, Inc., a Florida corporation.

     2. The Credit Facility.

          2.1  Loan.  Subject  to the terms and  conditions  of this  Agreement,
Lender agrees to make a single  advance to Borrower under the Loan in the amount
of $1,575,000.

          2.2 Application of Proceeds.  The proceeds of the Loan will be applied
as follows:  (a) $1,500,000 to the partial payment of the  indebtedness  owed by
Neptune  Society of  America,  Inc. to the Emanuel  Weintraub  Intervivos  Trust
pursuant  to  that  Promissory  Note  dated  March  31,  1999 in the  amount  of
$19,000,000.00,  as amended by the Third  Amendment dated June 19, 2001; and (b)
$75,000 in payment of the Cash Loan Fee. The Loan shall be funded in  accordance
with this Agreement and applicable provisions of the Note.

          2.3  Borrowing  and  Repayment.  The  Loan is not a  revolving  credit
facility and once  repayment is made Borrower  shall not be entitled to reborrow
any sum advanced hereunder.

          2.4 Intentionally Omitted.

          2.5 Interest.  The outstanding balance of the Loan shall bear interest
at the rate set forth in the Note.

          2.6 Terms of Repayment.  Borrower  shall repay advances made under the
Loan,  together  with all interest and other fees and  expenses,  as provided in
this Agreement and the Note.

     3.  Representations  and  Warranties  of  Borrower.  Except as is otherwise
disclosed  in the  Disclosure  Schedule  attached  to this  Agreement,  Borrower
represents,  warrants  and  covenants  to and for the  benefit of Lender,  which
representations  and warranties  shall be deemed remade on and as of the date of
Closing:

          3.1  Authority.  Borrower and each of the Guarantors has the requisite
capacity  and  authority  to make and enter into each of the Loan  Documents  to
which  Borrower  or  Guarantor  is a party  and to  carry  out the  transactions
contemplated therein. All authorizations have been secured that are necessary to
authorize the execution,  delivery and performance of this Agreement and each of
the other Loan Documents to which Borrower and Guarantors are a party.  Borrower
is in good standing in the State of Oregon.

          3.2 Execution, Delivery and Effect of Loan Documents. Each of the Loan
Documents to which Borrower is a party is a legal,  valid and binding obligation
of Borrower, enforceable in accordance with its terms.

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          3.3 Other  Obligations.  Except  with  respect to the debt that is the
subject of the Forbearance Agreement,  Borrower is not in material default under
any  instruments or obligations  relating to Borrower's  business or assets.  No
party has asserted any material  claim or default  relating to any of Borrower's
assets. The execution and performance of the Loan Documents and the consummation
of the transactions  contemplated thereby will not result in any material breach
of or constitute a material default under, any contract,  agreement, document or
other  instrument to which Borrower is a party or by which Borrower may be bound
or affected,  and do not and will not violate or contravene any material laws to
which Borrower is subject; nor do any such agreements,  documents or instruments
impose  or  contemplate  any   obligations   that  are  or  will  be  materially
inconsistent with the Loan Documents.

          3.4 Taxes. Borrower has filed all federal, state, and local income tax
returns  required  to have been  filed by it,  and has paid all taxes  that have
become due  pursuant to such returns or pursuant to any  assessments  on real or
personal property received by Borrower,  except only those local taxes where any
such failure to file or pay amounts due would not have a material adverse affect
on Borrower's  business,  finances or operations.  Borrower does not know of any
basis for additional  assessment  with regard to any such tax.  Borrower has not
executed or filed with any taxing  authority any agreement  extending the period
for assessment or collection of any tax to a date subsequent to the date hereof,
and no issue has been  raised by any  federal,  state,  local or foreign  taxing
authority  in  connection  with an  audit  or  examination  of the tax  returns,
business or properties of Borrower that has not been settled or resolved.

          3.5 Consents and Governmental Approvals.  The execution,  delivery and
performance  by Borrower of the Loan  Documents,  and  Lender's  exercise of any
remedy  available to it  thereunder,  do not and will not require any consent or
approval of any person or entity,  other than such consents as have been or will
have been obtained on or before the Closing Date. No approval by,  authorization
of,  or  filing  with any  federal,  state or  municipal  or other  governmental
commission,  board or agency or other  governmental  authority  is  necessary in
connection with the authorization,  execution and delivery of the Loan Documents
by Borrower.

          3.6 Legal Actions. There are no material actions, suits or proceedings
including,  without  limitation,  any  condemnation,  insolvency  or  bankruptcy
proceedings,  pending  or,  to the  best of  Borrower's  knowledge  and  belief,
threatened,  against or affecting  Borrower,  any Guarantor or their  respective
businesses or assets. There are no investigations,  at law or in equity,  before
or by any court or governmental authority, pending or, to the best of Borrower's
knowledge and belief, threatened against or affecting Borrower, any Guarantor or
their  respective  businesses or assets,  except actions,  suits and proceedings
fully covered by insurance and heretofore  fully  disclosed in writing to Lender
or that,  if  resolved  adversely  to Borrower  or any  Guarantor,  would have a
material  adverse  effect  on  Borrower,   any  Guarantor  or  their  respective
businesses  or assets.  Neither  Borrower  nor any  Guarantor is in default with
respect to any  order,  writ,  injunction,  decree or demand of any court or any
governmental  authority  affecting  Borrower,  any Guarantor or their respective
businesses or assets,  which default would materially adversely affect Borrower,
any Guarantor or their respective businesses or assets.

          3.7 Other  Security  Interests.  Except as disclosed in the Trust Deed
and in  Borrower's  Financial  Statements  delivered  to Lender  before the date
hereof,  there  does not exist any  pledge,  mortgage,  lien,  hypothecation  or
assignment for security affecting the Collateral, whether now owned or hereafter
acquired,   except  for  any  such  pledge,  mortgage,  lien,  hypothecation  or
assignment for security constituting a Permitted Encumbrance.

          3.8 Truth of Other  Statements,  Representations  and Warranties.  The
written statements, financial or otherwise, made by Borrower or any Guarantor to
Lender in connection with this  Agreement,  or in

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connection with the other Loan Documents,  do not, taken as a whole, contain any
untrue  statement of a material fact or omit a material  fact  necessary to make
the statements made therein not misleading.  All Financial  Statements  given by
Borrower or any Guarantor to Lender in connection  with this  Agreement,  or the
other Loan  Documents  have been  prepared  in  accordance  with GAAP,  and such
statements,  taken as a whole,  fairly  present the  financial  condition of the
parties or entities  covered thereby.  Since the date thereof,  neither Borrower
nor any such other party or entity has experienced  any material  adverse change
in its  finances,  business,  operations,  affairs  or  prospects.  To the  best
knowledge  of  Borrower,  there  is no fact  concerning  Borrower  or any of the
Guarantors  that Borrower has not disclosed to Lender in writing that materially
and adversely affects, nor, so far as Borrower can foresee, is reasonably likely
to prove to materially  and adversely  affect,  the Collateral or the ability of
Borrower to perform its obligations under the Loan Documents.

          3.9 Insurance.  Borrower shall maintain (a) such insurance required by
the Trust Deed and General  Security  Agreement with respect to the  Collateral,
and (b) adequate insurance protection against all liabilities,  claims and risks
against it that is customary for businesses similarly situated to Borrower.

          3.10  Material  Changes.   Since  the  date  of  Borrower's  Financial
Statements there has not been, with respect to Borrower:

               (a) Any material  adverse change in its financial  condition from
that shown on Borrower's Financial Statements;

               (b) Any  damage or loss,  whether  covered by  insurance  or not,
materially  and  adversely  affecting  Borrower's or any  Guarantor's  business,
property, assets or prospects;

               (c)  Any  other  event  or  condition  materially  and  adversely
affecting the results of Borrower's or any Guarantor's operations or business or
financial  condition or prospects taken as a whole, or any event that could have
such an effect; or

               (d) Any  legislative  or  regulatory  action  or,  to the best of
Borrower's  knowledge  and belief,  proposals  thereof,  that does,  or would if
enacted,   materially   adversely  affect  the  results  of  Borrower's  or  any
Guarantor's operations or business or financial conditions or prospects taken as
a whole.

          3.11  Compliance  With  Environmental  Laws. To the best of Borrower's
knowledge,  other  than as may be  disclosed  by any third  party  environmental
studies  provided to Lender  prior to the date of this  Agreement,  there are no
underground storage tanks located on, or  asbestos-containing  materials located
in, any of the real property  Collateral and there is not currently  located on,
any such real property  Collateral (or in the  groundwater of such real property
Collateral) any Hazardous  Material  (defined  below),  in  contravention of the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42
USC ss.ss.  9601 et seq.) ("CERCLA") or of any other similar  federal,  state or
local law,  rule or  regulation.  The term  "Hazardous  Material"  shall include
petroleum,   asbestos  and  all  hazardous  or  toxic  materials  or  pollutants
including,  without  limitation,  substances defined as "hazardous  substances,"
"hazardous  materials," or "toxic substances" in CERCLA, the Hazardous Materials
Transportation  Act, 42 USC ss.ss. 1801, et seq., the Resource  Conservation and
Recovery  Act,  42 USC  ss.ss.  6901  et  seq.,  any  similar  state  law or the
regulations adopted and publications promulgated pursuant to said laws.

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          3.12 Legal  Parcels of Real  Property  Collateral.  The real  property
Collateral  consists of one or more separate and distinct  legal parcels for tax
purposes and is not subject to property  taxes and a similar  charge against any
other land. Borrower has not, by act or omission,  impaired the integrity of the
real property  Collateral as one or more legally separate,  subdivided lots. The
use of the real  property  Collateral  is  permitted  as a matter of right under
existing zoning and other land use laws, rules and regulations.

     4.  Covenants of Borrower.  As a material  inducement to Lender to make the
Loan, and in addition to performing each of its obligations under the other Loan
Documents to which it is a party, Borrower covenants with and for the benefit of
Lender that, unless Lender otherwise consents in writing, and for so long as any
amount remains  outstanding  under the Note or any other  obligation  under this
Agreement, the Trust Deed, or any other Loan Documents remains to be performed:

          4.1  Financial  Statements.  Borrower  shall  deliver  to  Lender  its
Financial Statements not later than forty-five (45) days after and as of the end
of  each  interim  quarterly  accounting  period  ended  March  31,  June 30 and
September  30,  and not later than  ninety  (90) days after and as of the end of
each  fiscal  year ended  December 31 of  Borrower,  prepared  by  Borrower  and
certified by its manager(s) or officers.

          4.2 Additional Information.  Borrower shall promptly furnish to Lender
such other  information and data with respect to Borrower as Lender from time to
time may reasonably request, except as otherwise may be prohibited by law.

          4.3 Compliance With Laws.  Borrower shall comply with the requirements
of all Laws,  and with orders of any  governmental  agency,  noncompliance  with
which could materially  adversely  affect the business,  activities or condition
(financial or otherwise) of Borrower,  except that Borrower need not comply with
a  requirement  then  being  contested  by  it  in  good  faith  by  appropriate
proceedings  so long as no  interest  of  Lender  would be  materially  impaired
thereby.

          4.4 Compliance With Agreements, Duties and Obligations. Borrower shall
promptly and fully comply with,  and shall cause the  Guarantors to comply with,
all  agreements,  duties and obligations  arising under the Loan Documents,  and
promptly  and fully comply with all material  duties and  obligations  under any
other  material  agreements,  indentures,  leases or instruments to which either
Borrower or any Guarantor is a party which materially  affect the Loan Documents
or materially impair the Collateral.

          4.5 Payment of Taxes and Claims.  Borrower  shall pay, or shall ensure
that  the  following  are  paid,  before  they  become  delinquent:  all  taxes,
assessments and governmental charges or levies imposed upon Borrower or upon the
assets of  Borrower;  and to the  extent  that the  Collateral  of Lender may be
impaired,   all  claims  or  demands  of   materialmen,   mechanics,   carriers,
warehousemen,  landlords and other like persons that, if unpaid, might result in
the  creation of a lien upon any assets of  Borrower;  provided,  however,  that
payment of any such item may be deferred while being  contested in good faith so
long as Borrower's  title to, and its right to use, its assets is not materially
adversely affected thereby,  and so long as reserves in amounts  satisfactory to
Lender are maintained for such claims.

          4.6  Inspection of Books.  Borrower  shall permit and shall cause each
Guarantor to permit Lender, after notice to Borrower and each Guarantor,  as the
case may be, to examine or audit each  requested  party's  books of account  and
records and to copy and take  extracts  therefrom  and to discuss  said  party's
affairs,  finances or

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accounts,  and to be  advised  as to the same such  party,  in such  detail  and
through  such  agents  and  representatives  as Lender may  desire,  all at such
reasonable times and as often as may be reasonably requested.

          4.7 Disclosure of Material Litigation.  Borrower shall promptly notify
Lender of any litigation or other action,  suit or proceeding,  before any court
or  governmental  agency,  to which  Borrower or any Guarantor is a party if the
amount at risk in connection therewith is not fully covered by insurance, or if,
in the reasonable opinion of Borrower,  such litigation otherwise is material to
obligations  of  Borrower  hereunder.  Thereafter,  Borrower  shall keep  Lender
apprised  of the  status  of such  litigation  or  other  such  action,  suit or
proceeding in such manner as Lender may request.

          4.8 Grant of Additional Security Interests. Borrower shall not pledge,
mortgage,  encumber,  hypothecate or assign for security, or suffer the creation
or existence of any pledge, mortgage,  encumbrance,  hypothecation or assignment
for security on the Collateral other than (a) the Permitted Encumbrances and (b)
the  Senior  Loan,  without  the  written  consent  of  Lender  which may not be
unreasonably withheld.

          4.9  Misrepresentations.  Borrower shall not knowingly make to Lender,
and Borrower  shall not  knowingly  furnish to Lender any  certificate  or other
document  that  contains,  any untrue  statement of a material  fact,  nor shall
Borrower  knowingly permit any such statement,  certificate or other document to
omit a  material  fact  necessary  to  make  the  statements  made  therein  not
misleading taken as a whole.

          4.10 Notice of Default.  Borrower shall  promptly  notify Lender if it
learns that a Default has  occurred,  and shall specify with  particularity  the
nature of such Event of Default,  the period of existence of such  Default,  and
the actions Borrower is taking or proposes to take with respect thereto.

          4.11 Loan Costs and Expenses.  Borrower shall pay or reimburse Lender,
upon  demand,  all of  Lender's  reasonable  out-of-pocket  costs  and  expenses
(including  Lender's  reasonable  attorney's  fees),  to the extent  incurred by
Lender in connection with the negotiation,  preparation,  review,  carrying-out,
amendment,  waiver, refinancing,  restructuring,  reorganization and enforcement
of, and collection  pursuant to, this  Agreement,  the Trust Deed, and the other
Loan Documents,  the Closing, any advance or disbursement of Loan proceeds,  any
substitution of security under this Agreement and any amendment of any financing
statement made or given  pursuant to this Agreement  ("Loan Costs and Expenses")
including,  without  limitation,  Lender's  reasonable  attorneys' fees; fees of
Lender's certified public accountants and other outside experts; credit reports;
appraisal  fees;  lien  searches;  escrow  charges;  recording  or filing  fees;
insurance  premiums;  inspection,  due  diligence  and/or audit fees before Loan
closing and periodically during the term of the Loan.

          4.12  Additional  Acts.  In  addition  to the acts  that  Borrower  is
obligated  to  perform  under  this  Agreement,  or under any of the other  Loan
Documents,  Borrower shall from time to time perform,  execute and deliver to or
for the benefit of Lender any and all such further acts,  additional  documents,
or further assurances as may be necessary or proper to: (a) implement the intent
of the parties to this  Agreement;  (b) correct any errors in this  Agreement or
any of the other Loan Documents;  (c) assure Lender of the validity and priority
of the liens  and  security  interests  Lender  holds  pursuant  to the  various
documents securing the Loan; (d) create, perfect, preserve, maintain and protect
the liens and security  interests  created or intended to be created by the Loan
Documents;  (e)  transfer  all  right,  title  and  interest  to  Lender  in the
Collateral to be transferred  to Lender  pursuant to the terms of this Agreement
as and when such

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transfer  is  contemplated  by this  Agreement;  or (f)  provide  the rights and
remedies to Lender that are contemplated by the Loan Documents.

          4.13  Indemnification.  Borrower  shall  indemnify  and defend  Lender
against,  and hold Lender  harmless of and from, any and all losses,  liability,
claims,  damages, costs and expenses (including,  but not limited to, reasonable
attorneys'  fees and court costs,  whether  incurred at the trial,  appellate or
administrative  levels) that Lender may suffer or incur,  or to which Lender may
be subjected, by reason of, arising out of, or in connection with:

               (a) any  default or breach by Borrower  under any Loan  Document,
any untrue statement  contained in or made in connection with any Loan Document,
or the  omission  from the Loan  Documents  of any fact  required  to be  stated
therein, or that is necessary to make the statement therein not misleading; and

               (b) any  violation  or breach by  Borrower  or any of its agents,
servants,  employees  or licensees  of any of the terms and  provisions  of this
Agreement or any of the other Loan Documents.

Upon demand by Lender,  Borrower  shall defend any action or proceeding  brought
against Lender in connection  with any of the foregoing,  or Lender may elect to
conduct  its own  defense  at the  reasonable  expense  of  Borrower;  provided,
however,  that Borrower will be entitled to participate in such defense.  In any
event,  Borrower  shall  reimburse  Lender in full for all  out-of-pocket  costs
reasonably incurred investigating,  preparing or defending against any action or
proceeding,  commenced or  threatened,  in connection  with any of the foregoing
matters,  or incurred in settlement  of any such action or  proceeding  (whether
commenced or threatened).

No compromise or settlement of any claims or proceedings  may be effected by the
Lender without the Borrower's consent (which may not be unreasonably  withheld).
Notwithstanding the foregoing, if the Lender determines in good faith that there
is a reasonable  probability  that a proceeding  may adversely  affect it or its
affiliates  other  than as a result of  monetary  damages  for which it would be
entitled to indemnification under this Agreement,  the indemnified party may, by
notice to the Borrower,  assume the exclusive  right to defend,  compromise,  or
settle  such  proceeding,  but the  indemnifying  party will not be bound by any
determination  of a  proceeding  so defended  or any  compromise  or  settlement
effected without its consent (which may not be unreasonably withheld).

          4.14 Other Affirmative Covenants. Borrower shall:

               (a) at all  times  cause  to be  done  all  things  necessary  to
maintain,  preserve  and renew  its legal  existence  as a  corporation  and all
licenses and permits necessary to the conduct of its businesses;

               (b) comply with all  applicable  Laws,  and with all  obligations
that it  incurs or to which it  becomes  subject  pursuant  to any  contract  or
agreement,  whether  oral or written,  express or  implied,  the breach of which
could reasonably be expected to have a material adverse effect upon its business
or  financial  condition,  unless and only to the extent that the same are being
contested in good faith and by  appropriate  proceedings  and adequate  reserves
have been set aside with respect thereto;

               (c) apply for and, when  obtained,  continue in force,  with good
and reputable  insurance  companies,  adequate  insurance covering risks of such
types and in such amounts as are reasonably necessary to conduct its business;

                                       9
<PAGE>

               (d) make and keep books, records and accounts that, in reasonable
detail,  accurately and fairly reflect the  transactions in which it has engaged
and the disposition of its assets,  and devise and maintain a system of internal
accounting  controls  sufficient  to  provide  reasonable  assurances  that  (i)
transactions  are executed in accordance with  management's  general or specific
authorizations,   (ii)   transactions   are  recorded  as  necessary  to  permit
preparation  of  financial  statements  in  conformity  with  GAAP and any other
criteria  applicable  to such  statements,  and to maintain  accountability  for
assets, (iii) access to assets is permitted only in accordance with management's
general or specific  authorization,  and (iv) the  recorded  assets are compared
with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences discovered;

               (e) use its best efforts to preserve and protect the value of the
Collateral;

               (f)  not  amend  its  articles  of  incorporation  in any  manner
whatsoever  without Lender's prior written consent if such amendment will affect
or impair the value of the Collateral;

               (g)  engage in no  activity  other  than the  current  use of the
Property;

               (h) maintain  separate  bank accounts in the name of Borrower and
separate accounting with respect to the business and activities of Borrower; and

               (j) refrain from making  distributions  or other  payments of any
kind to its shareholders or owners or their respective families or affiliates.

     5. Conditions to Closing and to Disbursement of Funds.  Lender's obligation
to close the Loan,  to make the  advances,  and to disburse the Loan proceeds to
Borrower,  is subject to satisfaction of all of the following  conditions before
or contemporaneously with the Closing, any one or more of which Lender may waive
in writing:

          5.1 Truth of  Representations  and  Warranties.  All of Borrower's and
each Guarantor's  representations and warranties contained in this Agreement, in
any other Loan Document,  and in any other  certificate,  instrument or document
submitted by Borrower or any Guarantor to Lender in  connection  with the making
of the Loan shall be true and accurate in all material respects.

          5.2 Loan Fee.  Borrower  shall have paid Lender the Cash Loan Fee from
the proceeds of the Loan, and The Neptune Society,  Inc. shall have executed and
delivered its Treasury Order directing  Interwest  Transfer Co., Inc., its stock
transfer  agent, to issue 15,789 shares of its Common Stock to Lender in payment
of the Stock Loan Fee and a warrant certificate representing the Warrant.

          5.3  Delivery of Loan  Documents.  Borrower  shall have  executed  and
delivered  to Lender,  or caused to be executed  and  delivered to Lender by the
party or parties  thereto,  the following  documents,  each of which shall be in
form and substance satisfactory to Lender:

               (a)  this Agreement;

               (b)  the Note;

                                       10
<PAGE>

               (c)  the Trust Deed;

               (d)  the Guaranty (The Neptune Society, Inc.);

               (e)  the Guaranty (Neptune Society of America, Inc.);

               (f)  the General Security Agreement;

               (g)  the Unsecured Indemnity;

               (h)  the Intercreditor Agreement;

               (i)  the UCC Financing Statements;

               (j)  the Warrant;

               (k)  the Piggyback Registration Agreement;

               (l)  the Subordination Agreements;

               (m)  the Assignment; and

               (n)  such other documents and instruments  reasonably required by
Lender in connection with the Loan.

          5.4 Delivery of Other Documents and Certificates.  Borrower shall have
delivered or caused to be delivered to Lender each of the  following  additional
documents  or  certificates,  each of which  shall  be in a form  and  substance
satisfactory to Lender:

               (a)  certificates  of existence or  qualification  pertaining  to
Borrower  and  the  Guarantors,  issued  by the  Secretary  of  State  or  other
appropriate  official of Florida,  California or Oregon,  as the case may be, no
more than seven (7) business days before the Closing;

               (b) a  standard  coverage  lender's  policy  of  title  insurance
     insuring Borrower's  ownership of the real property Collateral and the lien
     of the  Trust  Deed in  favor  of  Lender,  subject  only to the  Permitted
     Encumbrances;

               (c) the Opinion of Counsel; and

               (d) the Forbearance Agreement.

          5.5 Loan Put Agreement. Lender, Schroeder and Ashe shall have executed
and  delivered  the Loan Put  Agreement in form and  substance  satisfactory  to
Lender.

                                       11
<PAGE>

          5.6 No Default.  No Default  shall have  occurred and be continuing or
exist.

          5.7  Subscription.  Lender and The Neptune  Society,  Inc.  shall have
executed and delivered a subscription  agreement  related to the issuance of the
Stock Loan Fee and the Warrant by The Neptune Society, Inc. to Lender.

          5.8 Reset Provisions.  Borrower, Guarantors and their affiliates shall
have satisfied their obligations,  to Lender's  satisfaction,  under the "reset"
provisions  of  the  Asset  Purchase   Agreement  dated  July  5,  2001  between
Acquisition,  Heritage,  Schroeder,  Ashe and Neptune (Section 2.2(i) and (ii)),
the Asset  Purchase  Agreement  dated  July 5, 2001  between  Acquisition,  CMC,
Schroeder, Ashe and Neptune (Section 2,2(i) and (ii)), the Agreement and Plan of
Merger dated July 5, 2000 between Acquisition, CMC, Wilhelm, Schroeder, Ashe and
Neptune (Sections  2.69(a)(i) and (ii)), the Apogee Non-Compete  Agreement dated
July 5, 2001 (Sections 6(i) and (ii)), the Schroeder Non-Compete Agreement dated
July 5,  2001  (Sections  6(i) and  (ii)),  and the Ashe  Employment/Non-Compete
Agreement dated July 5, 2001 (Sections 20(i) and (ii)).

     6. [Intentionally omitted.]

     7. Default; Remedies on Default.

          7.1 Event of Default. Unless waived in writing by Lender in the manner
described  in Section  8.1,  any of the  following  events shall be an "Event of
Default":

               (a) If Borrower shall apply the funds advanced under and pursuant
to this Agreement and the Note other than as permitted at Section 2.2;

               (b) If,  for any  payment  due under  the Note or any other  Loan
Document,  the  entire  amount  due  (including  principal,   interest  and  any
applicable premiums and late charges) is not paid when due;

               (c) If there  occurs a default  under any  other  Loan  Document,
under the Neptune Debenture or under the Forbearance Agreement that is not cured
within the applicable cure period, if any;

               (d) If any representation made herein, under any Loan Document or
under any other document or instrument delivered by Borrower or any Guarantor to
Lender in connection  herewith or pursuant  hereto,  or in  connection  with any
advance under the Note,  shall be false in any material respect when made, or if
any warranty made herein, under any Loan Document or under any other document or
instrument  delivered  by  Borrower  or any  Guarantor  to Lender in  connection
herewith or pursuant hereto, shall be breached in any material respect;

               (e) If any of the  following  should  occur:  (i) Borrower or any
Guarantor becomes insolvent,  makes a transfer in fraud to, or an assignment for
the benefit of, creditors,  or admits in writing its inability, or is unable, to
pay debts as they  become  due; or (ii) a  receiver,  custodian,  liquidator  or
trustee is appointed for all or  substantially  all of the assets of Borrower or
any  Guarantor,  or for any portion of  Borrower's or any  Guarantor's  accounts
receivable in any proceeding  brought by Borrower or any Guarantor,  or any such
receiver or trustee is appointed in any proceeding  brought against  Borrower or
any  Guarantor  or  any  portion  of  Borrower's  or  any

                                       12
<PAGE>

Guarantor's  accounts  receivable;  or (iii)  Borrower or any Guarantor  files a
petition for relief under the federal Bankruptcy Code, as amended,  or under any
similar  law or  statute of the United  States or any state  thereof;  or (iv) a
petition  against  Borrower or any Guarantor is filed  commencing an involuntary
case under any present or future Federal or state  bankruptcy or similar law and
such  petition is not  dismissed or  discharged  within 60 days from the date of
filing;  or  (v)  any  composition,   rearrangement,   liquidation,   extension,
reorganization or other relief of debtors now or hereafter existing is requested
by Borrower or any Guarantor;  or (vi) Borrower or any Guarantor is dissolved or
liquidated  or  all  or  substantially  all of the  assets  of  Borrower  or any
Guarantor are sold or otherwise transferred;

               (f) If Borrower shall fail to perform any other  obligation under
this  Agreement  within ten (10) days after  notice from Lender  specifying  the
nature of the failure or default  or, if the failure or default  cannot be cured
within ten (10) days,  failure  within  such time to  commence  and pursue  with
reasonable  diligence  curative action.  No notice of default and opportunity to
cure shall be  required  or given if during  the  preceding  three (3)  calendar
months Lender has sent a notice to Borrower  concerning a default in performance
of the same obligation; or

               (g) Any sale or transfer of the  Collateral  or of  interests  in
Borrower or any  Guarantor in breach of the  provisions of the Trust Deed or the
General Security Agreement.

          7.2 Lender's Remedies on Default.  Upon the occurrence of any Event of
Default,  in addition to  exercising  any remedy  available to Lender at law, in
equity or in any other Loan  Document,  and  without  impairing  any of Lender's
rights,  powers or  privileges  under  this  Agreement  or under any other  Loan
Document, Lender may do all or any of the following:

               (a) Accelerate the maturity of the Note and demand payment of the
principal  sums due  thereunder,  with interest and late charges,  whereupon the
same  shall  become  and  be  forthwith  due  and  payable,   without   protest,
presentment,  notice of dishonor,  demand or future  notice of any kind,  all of
which Borrower expressly waives;

               (b) Institute  appropriate  proceedings to  specifically  enforce
performance of this Agreement, the Trust Deed, the Guaranties, and/or any of the
other Loan Documents; or

               (c)  Exercise  any right or  remedy  granted  by the Trust  Deed,
General Security Agreement or any other Loan Document.

Any funds  expended by Lender in the  exercise  of its rights or remedies  under
this  Agreement  and the other  Loan  Documents  shall be  payable  to Lender on
demand,  together with interest at the default rate  applicable to the principal
balance of the Note from the date the funds were expended.

Lender may  exercise  its rights and remedies in any order or manner that Lender
may  determine  in its sole  discretion.  Regardless  of how  Lender  may  treat
payments  for the purpose of its own  accounting,  for the purpose of  computing
Borrower's  obligations  hereunder and under the Note,  payments and proceeds of
collateral  received  following an acceleration of the amounts payable under the
Loan  Documents  shall be applied,  first,  to the costs and expenses of Lender,
second,  to the  payment  of  accrued  and  unpaid  interest  due under the Loan
Documents to and including the date of such  application,  third, to the payment
of all unpaid principal amounts due under the Loan Documents, and fourth, to the
payment of all other  amounts  (including  fees) then owing to Lender  under the
Loan  Documents.  No application of payments will cure any Event of Default,  or
prevent acceleration,  or continued  acceleration,  of amounts payable under

                                       13
<PAGE>

the Loan Documents, or prevent the exercise, or continued exercise, of rights or
remedies of Lender hereunder or thereunder or at law or in equity.

     8. General Provisions.

          8.1  Integration.   This  Agreement,  together  with  the  other  Loan
Documents,  constitutes the entire  agreement of the parties with respect to the
Loan and supersedes all prior written or oral negotiations, letters of intent or
agreements with respect thereto.  In the event of conflict between the terms and
provisions  of this  Agreement  and any  other  Loan  Document,  the  terms  and
provisions of this Agreement shall control; provided, however, that if the terms
and conditions of the Note, Trust Deed or General  Security  Agreement impose on
Borrower  additional or more stringent  requirements than those set forth in the
other Loan  Documents,  such  terms and  conditions  of the Note,  Trust Deed or
General Security Agreement shall control. Borrower acknowledges that no agent of
Lender shall have any authority to make an oral modification,  consent,  waiver,
extension or amendment of this  Agreement or of any Loan  Document,  or to agree
orally to forebear from taking some action pursuant thereto,  and Borrower shall
not be  entitled  to rely  upon any such  oral  consent,  waiver,  modification,
agreement or statement, if made. Any extension, modification or amendment of the
Loan  Documents,  and any  consent or waiver  thereunder  or  thereto,  shall be
enforceable  against Lender only if in writing and only if signed by a corporate
officer or trustee of Lender. The Loan Documents,  and any instruments  referred
to therein or herein,  or executed  and  delivered  in  connection  therewith or
herewith, can only be modified or amended by a written document signed by Lender
and the other party or parties thereto.

          8.2  Attorneys'  Fees. If any attorney is engaged by Lender to enforce
or defend any provision of this Agreement or the other Loan  Documents,  or as a
consequence of any Default under the Loan Documents,  with or without the filing
of any legal action or proceeding, Borrower shall immediately pay to Lender upon
demand the amount of all  attorneys'  fees and  expenses  and costs  incurred by
Lender in connection therewith, including all trial and appellate proceedings in
any action, suit, bankruptcy or other proceeding, together with interest thereon
from  the  date of  such  demand  until  paid at the  default  rate of  interest
applicable to the principal balance of the Note as specified therein.

          8.3  Notices.  Notices  under this  Agreement  shall be in writing and
shall be effective when delivered.  Notices shall be deemed  delivered when sent
by facsimile transmission, provided that a copy of the notice is sent by Federal
Express within  twenty-four hours thereafter,  directed to the other parties (or
to the  party  required  to be  provided  with  such  notice)  at the  following
facsimile numbers and addresses:

          If to Borrower:           Wilhelm Mortuary, Inc.
                                    c/o Neptune Society of America, Inc.
                                    3500 W. Olive, Suite 1430
                                    Burbank, California 91505
                                    Fax:  (818) 953-9844
                                    Attn:  David Schroeder, President

          With a copy to:           Steven D. Adler, Esq.
                                    2130 NE Klickitat Street
                                    Portland, Oregon 97212
                                    Fax: (503) 282-5833

                                       14
<PAGE>

          With a copy to:           Randal Jones, Esq.
                                    1420 5th Avenue, Suite 3400
                                    Seattle, WA 98101
                                    Fax: (206) 903-8820

          If to Lender:             Green Leaf Investors I, LLC
                                    4444 Lakeside Drive, Suite 340
                                    Burbank, California 91505
                                    Phone:  (818) 840-1500
                                    Fax:  (818) 556-6994
                                    Attn:  Tom R. Camp, Esq.

          With a copy to:           Lane Powell Spears Lubersky LLP
                                    601 SW Second Avenue, Suite 2100
                                    Portland, Oregon 97204
                                    Fax: (503) 778-2200
                                    Attn: Jeffrey C. Wolfstone, Esq.

or to such other  address or number as the intended  addressee may have given to
the other  party in  writing  in the  manner  set  forth  above.  Such  notices,
requests,  demands and other  communications shall be deemed given when actually
received  or, if earlier,  (a) in the case of delivery by courier  service  with
guaranteed  next day delivery,  the next day or the day designated for delivery,
(b) in the case of certified  United  States mail,  three (3) days after deposit
therein,  or (c) in the case of fax, the date upon which the transmitting  party
received confirmation of receipt by fax, telephone or otherwise. No notice to or
demand on Borrower shall in any case, of itself,  entitle  Borrower to any other
or further notice or demand in similar or other circumstances.

          8.4 Governing Law. This Agreement  shall be governed by, and construed
and enforced in accordance with, the laws of the State of Oregon, without resort
to such State's choice of law rules.  Any  proceeding  related to this Agreement
shall be commenced or maintained only in the courts in Multnomah County, Oregon,
and the parties  hereto hereby  irrevocably  submit to the  jurisdiction  of any
state or federal court  sitting in Multnomah  County,  Oregon,  in any action or
proceeding  brought to enforce or  otherwise  arising out of or relating to this
Agreement,  and hereby  waive any  objection  to venue in any such court and any
claim that such forum is an inconvenient forum.

          8.5 Counterparts. This Agreement may be executed in counterparts, each
of which  shall be deemed an  original,  and all of which taken  together  shall
constitute one and the same agreement,  notwithstanding that one or more parties
may have signed a separate signature page..

          8.6 Survival of Representations,  Warranties and Covenants. All of the
representations,  warranties and covenants contained herein or in any statement,
certificate  or other  instrument  furnished  (or to be  furnished)  by Borrower
pursuant to this  Agreement  shall survive the Closing and shall not be affected
by any investigation,  verification or approval by Lender or by anyone on behalf
of Lender.

                                       15
<PAGE>

          8.7 Time of the Essence. Time is of the essence of this Agreement,  it
being  understood  that each date set forth herein,  and the  obligations of the
parties  to be  satisfied  by such  date,  have  been the  subject  of  specific
negotiation by the parties.

          8.8  Relationship of Parties.  The relationship of Borrower and Lender
under the Loan  Documents  is, and shall at all times  remain,  solely that of a
borrower  and  a  lender,   and  Lender  neither   undertakes  nor  assumes  any
responsibility  or duty to Borrower  or to any third  party with  respect to the
Collateral or any  improvements  thereon,  except as expressly  provided in this
Agreement and the other Loan Documents.

          8.9 Lender's  Agents.  Lender may  designate  an agent or  independent
contractor  to exercise any of Lender's  rights under this  Agreement and any of
the other Loan  Documents.  Any reference to Lender in any of the Loan Documents
shall  include for such purposes  Lender's  agents,  employees  and  independent
contractors.

          8.10  Waiver  of Right to Jury  Trial.  EACH  PARTY TO THIS  AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,  ACTION
OR CAUSE OF ACTION  (a)  ARISING  UNDER THE LOAN  DOCUMENTS,  INCLUDING  WITHOUT
LIMITATION  ANY  PRESENT  OR  FUTURE  MODIFICATION  THEREOF  OR (b)  IN ANY  WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR
ANY OF THEM WITH RESPECT TO THE LOAN DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR
ANY OTHER INSTRUMENT,  DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH,  OR THE TRANSACTIONS  RELATED HERETO OR THERETO,  IN EACH CASE WHETHER
SUCH  CLAIM,  DEMAND,  ACTION OR CAUSE OF ACTION IS NOW  EXISTING  OR  HEREAFTER
ARISING,  AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE;  AND EACH PARTY
HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN  EVIDENCE OF THE
CONSENT OF THE PARTIES TO THE WAIVER OF ANY RIGHT THEY MIGHT  OTHERWISE  HAVE TO
TRIAL BY JURY.

          8.11 Severability. If any provision or obligation under this Agreement
or the  other  Loan  Documents  shall  be  determined  by a court  of  competent
jurisdiction to be invalid,  illegal or  unenforceable,  that provision shall be
deemed  severed  from  the  Loan  Documents  and  the  validity,   legality  and
enforceability  of the remaining  provisions or obligations shall remain in full
force and effect as though the invalid,  illegal or unenforceable  provision had
never been a part of the Loan Documents,  provided, however, that if the rate of
interest or any other  amount  payable  under the Note or this  Agreement or any
other Loan Document, or the right of collectibility  therefore,  are declared to
be or become invalid,  illegal or  unenforceable,  Lender's  obligations to make
advances under the Loan Documents shall not be enforceable by Borrower.

          8.12 Statutory Notice. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND
COMMITMENTS  MADE BY A LENDER AFTER OCTOBER 3, 1989  CONCERNING  LOANS AND OTHER
CREDIT  EXTENSIONS WHICH ARE NOT FOR PERSONAL,  FAMILY OR HOUSEHOLD  PURPOSES OR
SECURED  SOLELY  BY  THE  BORROWER'S  RESIDENCE  MUST  BE  IN  WRITING,  EXPRESS
CONSIDERATION  AND  BE  SIGNED  BY  THE  LENDER  TO  BE  ENFORCEABLE.   BORROWER
ACKNOWLEDGES RECEIPT OF A COPY OF THIS AGREEMENT.

                                       16
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement on
and as of the day and year first above written.

LENDER:                            GREEN LEAF INVESTORS I, LLC
                                   a California limited liability company

                                   By:  The Apogee Management Company, Inc.,
                                        a California corporation, Manager

                                        By: [Illegible]

                                        Its: [Illegible]

BORROWER:                          WILHELM MORTUARY, INC.,
                                   an Oregon corporation

                                        By: [Illegible]

                                        Its: [Illegible]

                                       17
<PAGE>

                               Disclosure ScheduleEXHBIT 10.32

                                     Warrant

THIS  WARRANT  AND THE SHARES  DELIVERABLE  UPON  EXERCISE  HEREOF HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933
ACT") OR THE  SECURITIES  LAWS OF ANY  STATE  OF THE  UNITED  STATES  AND MAY BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (i) TO THE COMPANY, (ii) OUTSIDE THE
UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, IF
AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, (iii) IN
COMPLIANCE WITH THE EXEMPTION FROM  REGISTRATION  UNDER THE 1933 ACT PROVIDED BY
RULE 144 THEREUNDER, IF APPLICABLE, OR (iv) IN COMPLIANCE WITH ANOTHER EXEMPTION
FROM  REGISTRATION  AND ANY APPLICABLE STATE SECURITIES LAWS, IN EACH CASE AFTER
PROVIDING  EVIDENCE  SATISFACTORY  TO THE COMPANY THAT SUCH TRANSFER MAY BE MADE
WITHOUT REGISTRATION UNDER THE 1933 ACT.

                WARRANT TO PURCHASE 30,000 SHARES OF COMMON STOCK

                            THE NEPTUNE SOCIETY, INC.
                             (a Florida corporation)

                     Not Transferable or Exercisable Except
                        Upon Conditions Herein Specified
                      Void after 5:00 O'Clock P.M., Pacific
              Standard Time, on the Expiry Date (as herein defined)

     THE NEPTUNE SOCIETY INC., a Florida  corporation  (the  "Company"),  hereby
certifies  that Green Leaf  Investors  I, LLC, a  California  limited  liability
company, its registered successors and permitted assigns registered on the books
of the Company  maintained  for such purposes as  registered  holder hereof (the
"Holder"),  for value  received,  is entitled  to purchase  from the Company the
number of fully paid and  non-assessable  shares of $.002 par value common stock
of the  Company  ("Shares")  stated  above at a  purchase  price of Six  Dollars
($6.00) per Share (the "Exercise  Price") (the number of Shares and the Exercise
Price being subject to adjustment as  hereinafter  provided)  upon the terms and
conditions herein provided.

1.   Exercise of Warrants.

     (a)  Subject to Section  1(b),  upon  presentation  and  surrender  of this
Warrant,  with the attached Exercise Form duly executed, at the principal office
of the Company at 3500 W. Olive, Suite 1430, Burbank,  California,  91505, or at
such other place as the Company may  designate  by notice to the Holder  hereof,
with and upon payment (which may be in the form of a certified or bank cashier's
check  payable to the order of the  Company or in the form of  electronic  funds
transfer to the Company's  account,  the wiring  instructions for which shall be
provided  upon  request by the Holder) in the amount of the  aggregate  Exercise
Price for the Shares being

                                       1
<PAGE>

purchased,  the  Company  shall  deliver to the  Holder  hereof as  promptly  as
practicable,  certificates representing the Shares being purchased. This Warrant
way be  exercised in whole or in part;  and, in case of exercise  hereof in part
only,  the  Company,  upon  surrender  hereof,  will deliver to the Holder a new
Warrant  Certificate or Warrant  Certificates of like tenor entitling the Holder
to  purchase  the  number  of  Shares  as to  which  this  Warrant  has not been
exercised.

     (b)  This Warrant may be exercised in whole or in part at any time prior to
5:00 o'clock  P.M.,  Pacific  Standard  Time,  on August ___,  2002 (the "Expiry
Date"); provided, however, that in the event of (i) the closing of the Company's
sale or transfer of all or substantially  all of its assets, or (ii) the closing
of the  acquisition  of the  Company  by  another  entity  by means of a merger,
consolidation or other transaction or series of related  transactions  resulting
in the exchange of the  outstanding  shares of the Company's  capital stock such
that the stockholders of the Company prior to such transaction own,  directly or
indirectly,  less than 50% of the voting  power of the  surviving  entity,  this
Warrant shall  automatically be deemed to be exercised in full in the manner set
forth in Section 2 below,  without any  further  action on behalf of the Holder,
immediately prior to the closing of such transaction. In the event of a proposed
transaction of the kind described in this Section 1(b), the Company shall notify
the Holder at least fifteen (15) days prior to the closing of such transaction.

2.   Net or Cashless Exercise.

     In lieu of  exercising  this  Warrant in the manner  provided  in Section 1
above, the Holder may elect to receive Shares equal to the value of this Warrant
(or the portion  thereof  being  canceled)  by  surrender of this Warrant at the
address set forth above,  together with notice of such election,  in which event
the Company shall issue to the Holder that number of Shares  computed  using the
following formula:

           X =      Y(A-B)
                       A

Where:     X =      The number of shares of Common Stock to be issued to the
                    Holder pursuant to this net issue exercise;

           Y        = The number of Shares purchasable under this Warrant
                    (at the date of such  calculation)  with  respect  to
                    which the net issue exercise is made;

           A        = The Fair  Market  Value (as herein  defined) of one
                    share of  Common  Stock  (at the  time the net  issue
                    exercise is made)

           B        = The  Exercise  Price  (as  adjusted  to the  date  of such
                    calculation)

For  purposes of this  Section 2, "Fair  Market  Value" means as of a particular
date:  (i) if traded on a  securities  exchange or through  the Nasdaq  National
Market,  the average of the closing prices of the securities on such exchange or
on the Nasdaq  National  Market over the thirty (30) day period ending three (3)
days prior to the net issue exercise election; (ii) if traded  over-the-counter,
the

                                       2
<PAGE>

average of the closing bid or sale prices  (whichever  is  applicable)  over the
thirty  (30) day period  ending  three (3) days prior to the net issue  exercise
election;  and (iii) if there is no active public market,  the fair market value
as  mutually  determined  in good  faith by the  board of the  directors  of the
Company and the Holder.

3.   Exchange  of  Warrant.  This  Warrant,  at any time  prior to the  exercise
hereof,  upon presentation and surrender to the Company,  may be exchanged alone
or with other Warrants of like tenor  registered in the name of the Holder,  for
another  Warrant  or other  Warrants  of like  tenor in the name of such  Holder
exercisable  for the same aggregate  number of Shares as the Warrant or Warrants
surrendered.

4.   Rights and Obligations of Warrant Holder.

     (a)  The Holder of this Warrant Certificate shall not, by virtue hereof, be
entitled  to any rights of a  stockholder  in the  Company,  either at law or in
equity;  provided,  however, in the event that any certificate  representing the
Shares is issued to the Holder hereof upon exercise of this Warrant, such Holder
shall,  for all purposes,  be deemed to have become the holder of record of such
Shares  on the date on which  this  Warrant  Certificate,  together  with a duly
executed  Exercise Form, was  surrendered  and payment of the Exercise Price was
made, irrespective of the date of delivery of such Share certificate. The rights
of the Holder of this  Warrant  are  limited to those  expressed  herein and the
Holder of this Warrant,  by its acceptance hereof,  consents to and agrees to be
bound by and to comply  with all the  provisions  of this  Warrant  Certificate,
including,  without  limitation,  all the  obligations  imposed  upon the Holder
hereof by Section 6 hereof. In addition, the Holder of this Warrant Certificate,
by accepting the same,  agrees that the Company may deem and treat the person in
whose name this Warrant  Certificate  is  registered on the books of the Company
maintained  for such  purpose as the  absolute,  true and  lawful  owner for all
purposes whatsoever,  notwithstanding any notation of ownership or other writing
hereon.

     (b)  No Holder of this Warrant  Certificate,  as such, shall be entitled to
vote or  receive  distributions  or to be deemed  the  holder of Shares  for any
purpose,  nor shall anything contained in this Warrant  Certificate be construed
to confer  upon any  Holder of this  Warrant  Certificate,  as such,  any of the
rights of a  stockholder  of the Company or any right to vote,  give or withhold
consent to any action by the Company,  whether upon any recapitalization,  issue
of stock,  reclassification of stock, merger,  conveyance or otherwise,  receive
notice of meetings or other action  affecting  stockholders  (except for notices
provided for herein), receive distributions,  subscription rights, or otherwise,
until this Warrant shall have been exercised and the Shares purchasable upon the
exercise  hereof shall have become  deliverable  as provided  herein;  provided,
however, that any such exercise on any date when the stock transfer books of the
Company shall be closed shall  constitute the person or persons in whose name or
names the certificate or  certificates  for those Shares are to be issued as the
recordholder  or holders  thereof for all purposes at the opening of business on
the next  succeeding  day on which such stock  transfer  books are open, and the
Warrant  surrendered shall not be deemed to have been exercised,  in whole or in
part as the case may be, until the next  succeeding  day on which stock transfer
books are open for the purpose of determining  entitlement to  distributions  on
the Company's common stock.

                                       3
<PAGE>

5.   Shares  Underlying  Warrants.  The  Company  covenants  and agrees that all
Shares delivered upon exercise of this Warrant shall,  upon delivery and payment
therefor,   be  duly  and  validly   authorized   and  issued,   fully-paid  and
non-assessable,  and free from all stamp taxes,  liens, and charges with respect
to the issuance thereof. In addition, the Company agrees at all times to reserve
and keep  available  an  authorized  number of Shares  sufficient  to permit the
exercise in full of this Warrant.

6.   Disposition of Warrants or Shares.

     (a)  The holder of this Warrant Certificate and any transferee hereof or of
the Shares  issuable  upon the  exercise  of the Warrant  Certificate,  by their
acceptance hereof, hereby understand and agree that this Warrant, and the Shares
issuable upon the exercise hereof have not been registered under either the 1933
Act or  applicable  state  securities  laws (the "State  Acts") and shall not be
sold, pledged,  hypothecated,  donated, or otherwise transferred (whether or not
for  consideration)  except  upon the  issuance  to the  Company of a  favorable
opinion of counsel  or  submission  to the  Company of such  evidence  as may be
satisfactory  to counsel or submission to the Company of such evidence as may be
satisfactory  to counsel to the Company,  in each such case,  to the effect that
any such  transfer not be in  violation  of the 1933 Act and the State Acts.  It
shall be a condition to the transfer of this Warrant that any transferee thereof
deliver to the Company its  written  Agreement  to accept and be bound by all of
the terms and conditions of this Warrant.

     (b)  The stock  certificates  of the Company that will  evidence the Shares
with respect to which this  Warrant may be  exercisable  will be imprinted  with
conspicuous legend in substantially the following form:

     "The securities  represented by this  certificate  have not been registered
     under  either the  Securities  Act of 1933,  as  amended  (the  "Act"),  or
     applicable  state securities laws (the "State Acts") and shall not be sold,
     pledged, hypothecated, donated or otherwise transferred (whether or not for
     consideration)  by the holder  except upon the issuance to the Company of a
     favorable  opinion of its  counsel or  submission  to Company of such other
     evidence as may be  satisfactory  to counsel of the  Company,  in each such
     case, to the effect that any such transfer shall not be in violation of the
     Act and the State Acts."

Except as provided in Piggyback  Registration  Agreement  of even date  herewith
between the Holder and the Company (the "Registration  Agreement"),  the Company
has not agreed to register any of the Holder's Shares with respect to which this
Warrant may be exercisable for distribution in accordance with the provisions of
the 1933 Act or the State Acts and the Company has not agreed to comply with any
exemption from registration  under the 1933 Act or the State Acts for the resale
of the  Holder's  Shares with  respect to which this  Warrant may be  exercised.
Hence, it is the  understanding  of the Holder of this Warrant that by virtue of
the provisions of certain rules respecting "restricted  securities"  promulgated
by the Securities and Exchange  Commission the Shares with respect to which this
Warrant may be exercisable may be required to he held  indefinitely,  unless and
until registered under the 1933 Act and the State Acts, unless

                                       4
<PAGE>

an exemption  from such  registration  is available in which case the Holder may
still be limited as to the number of Shares with  respect to which this  Warrant
may be exercised that may be sold.

7.   Adjustments.  The number of Shares  purchasable  upon the  exercise of each
Warrant is subject to adjustment from time to time upon the occurrence of any of
the events enumerated below.

     (a)  In  case  the  Company  shall,  (i) pay a  dividend  in  Shares;  (ii)
subdivide its  outstanding  Shares into a greater number of Shares (iii) combine
its  outstanding  Shares into a smaller  number of Shares;  the number of Shares
purchasable upon the exercise of the Warrant  immediately prior thereto shall be
adjusted so that the Holder  shall be entitled to receive  upon  exercise of the
Warrant  that number of Shares  which such Holder would have owned or would have
been  entitled  to receive  after the  happening  of such event had such  Holder
exercised the Warrant  immediately prior to the record date, in the case of such
dividend,  or the  effective  date,  in the  case  of any  such  subdivision  or
combination.  Appropriate  adjustments shall also be made to the Exercise Price,
but the  aggregate  Exercise  Price for the total  number of Shares  purchasable
under this Warrant (as  adjusted)  shall  remain the same.  An  adjustment  made
pursuant to this  Section  7(a) shall be made  whenever any of such events shall
occur, but shall become effective  retroactively  after such record date or such
effective date, as the case may be, as to Warrants exercised between such record
date or effective date and the date of happening of any such event.

     (b)  In case of any capital  reorganization,  any  reclassification  of the
capital  stock of the  Company  (other  than as a result of a stock  dividend or
subdivision, split up or combination of shares) or any merger, sale or exchange,
lease,  transfer or other  disposition  or share  exchange  (except as otherwise
provided in Section 1(b)), the number of Shares purchasable upon the exercise of
the  Warrant  immediately  prior  thereto  shall be adjusted  (effective  on the
opening of business on the date after the effective date of such reorganization,
reclassification, merger, sale or exchange, lease, transfer or other disposition
or share exchange) so that the Holder shall be entitled to receive upon exercise
of the  Warrant  the kind and number of shares of stock or other  securities  or
property of the Company or of the  corporation  resulting  from  surviving  such
merger or to which such properties,  and assets shall have been sold, exchanged,
leased,  transferred or otherwise  disposed or which was the  corporation  whose
securities  were  exchanged  for those of the Company to which the holder of the
number of Shares deliverable (at the close of business,  on the date immediately
preceding the effective date of such reorganization,  reclassification,  merger,
sale,  exchange,  lease,  transfer or other disposition or share exchange) would
have been entitled upon such  reorganization,  reclassification,  merger,  sale,
exchange,  lease,  transfer or other disposition or share exchange.  Appropriate
adjustments shall also be made to the Exercise Price, but the aggregate Exercise
Price  for the total  number  of  Shares  purchasable  under  this  Warrant  (as
adjusted)  shall  remain the same.  The  provisions  of this  Section 7(b) shall
similarly  apply  to  successive  reorganizations,  reclassifications,  mergers,
leases,  exchanges,  leases,  transfers  or other  dispositions  or other  share
exchanges.

     (c)  If and whenever any Additional  Shares (as hereinafter  defined) shall
be issued by the Company (i) for a cash  consideration  less than the amount per
share  determined by dividing (1) $6.00 by (2) the ratio (the "Initial  Exchange
Ratio") of (A) the number of Shares  with  respect

                                       5
<PAGE>

to which this Warrant was  exercisable  into (taking into account at adjustments
thereto  required to be made hereunder) at the close of business on the business
day  immediately  preceding  the day of  such  issue  (the  "Initial  Number  of
Shares"), to (B) 30,000, or (ii) without consideration,  then in each such case,
the number of Shares  purchasable upon the exercise of this Warrant  Certificate
shad be  increased  effective  as of the opening of business on the date of such
issue (the "Issue  Date") by  multiplying  the Initial  Number of Shares by that
ratio obtained:  (1) by multiplying (A) $6.00 times (B) the aggregate  number of
Shares  issued and  outstanding  at the close of business on the Issue Date (the
"Issue Date Shares") and (2) by dividing the product thus  determined by the sum
of the  following  clauses  (3) and (4):  (3) $6.00  divided by (x) the  Initial
Exchange Ratio and the quotient thus determined  multiplied by (y) the number of
Shares  issued and  outstanding  at the close of  business on the  business  day
immediately  preceding the Issue Date; plus (4) the amount of the  consideration
(if any) received by the Company for the  Additional  Shares issued on the Issue
Date.

     (d)  In case of the issuance of any Additional  Shares for a  consideration
part or all of which  shall  be  cash,  the  amount  of the  cash  consideration
therefor  shall be deemed to be the amount of the cash  received  by the Company
for such shares,  or, if such  Additional  Shares are offered by the Company for
subscription,  the subscription  price,  or, if such Additional  Shares shall be
sold to  underwriters  or dealers  pursuant to a public  offering  other than by
subscription,  the initial  public  offering  price,  less any  compensation  or
discount  in the sale,  underwriting  or  purchase  thereof by  underwriters  or
dealers or others  performing  similar services or for any expenses  incurred in
connection therewith.

     (e)  In case of the issuance of any Additional  Shares for a  consideration
part or all of which shall be other than cash,  the amount of the  consideration
therefor  other than cash shall be deemed to be the Fair  Market  Value for such
consideration  as determined in accordance with Section 7(j) hereof.  In case of
the  reclassification  of  securities  into  Shares,  the Shares  issued in such
reclassification  shall be deemed to have been issued for a consideration  other
than cash  immediately  prior to the close of business on the date fixed for the
determination of the stockholders entitled to receive such Shares.

     (f)  Additional  Shares issued by way of dividend or other  distribution on
any class of capital  stock of the  Company  shall be deemed to have been issued
without  consideration and shall be deemed to have been issued as of the opening
of business on the business  day  immediately  following  the date fixed for the
determination  of the  stockholders  entitled to receive such  dividend or other
distribution.

     (g)  The term "Additional  Shares" as used herein shall mean all Shares (or
shares of any other  class of  securities  of the Company  entitling  the holder
thereof to participate in any  distribution  of the Company's  remaining  assets
after  payment  to  the  holders  of  securities   entitled  to  a  preferential
distribution  upon any  dissolution,  liquidation  or winding-up of the Company)
issued  by the  Company  after  the date  hereof,  whether  or not  subsequently
reacquired or retired by the Company other than:

          (i)  Shares issued upon the exercise of this Warrant;

                                       6
<PAGE>

          (ii) shares issued by way of dividend or other  distribution on Shares
               or any  subdivision  or  combination  of  Shares  referred  to in
               Section   7(a)  or  on   Shares   resulting   from  any   capital
               reorganization,   reclassification,  merger,  sale  or  exchange,
               lease,  transfer or other  disposition or share exchange referred
               to in Section 7(b); or

          (iii) shares  ("Acquisition   Shares")   issued  by  the   Company  in
               connection with and as  consideration  for the acquisition by the
               Company  or any  Subsidiary  of the  assets  or stock of  another
               corporation pursuant to a bona fide purchase and sale transaction
               with one or more persons acting at arm's length from the Company,
               the Subsidiaries;  and their respective  directors,  officers and
               significant  shareholders,  provided such  transaction is in good
               faith approved by the Board of Directors of the Company.

     (h)  In case of the issuance of

          (i)  options to purchase or rights to subscribe for Shares,

          (ii) securities by their terms  convertible into, or exchangeable for,
               Shares, or

          (iii)options to purchase or rights to subscribe  for such  convertible
               or exchangeable securities;

then, in each such case,  for all purposes of this Section 7 (including  without
limitation for the purpose of determining  the Issue Date Shares  referred to in
Section   7(c)(ii)(1)(B)  and  the  number  of  Shares  issued  and  outstanding
immediately prior to the Issue Date referred to in Section 7(c)(ii)(3)(y)):

          (iv) The aggregate maximum number of Shares  deliverable upon exercise
               of such  options to  purchase or rights to  subscribe  for Shares
               shall be deemed to be Additional  Shares at the time such options
               or  rights  were  issued  and for a  consideration  equal  to the
               consideration (determined in the manner provided in Sections 7(c)
               and (d)) if any,  received  by the Company  upon the  issuance of
               such options or rights plus the minimum  purchase  price provided
               in such options or rights for the Shares covered thereby.

          (v)  The aggregate number of Shares deliverable upon conversion of, or
               in exchange for, any such convertible or exchangeable  securities
               or upon  the  exercise  of  options  to  purchase  or  rights  to
               subscribe for such  convertible  or  exchangeable  securities and
               subsequent  conversion or exchange  thereof shall be deemed to be
               Additional Shares at the time such securities were issued or such
               options or rights  were issued and for a  consideration  equal to
               the consideration received by the Company for any such securities
               or related  options or rights  (excluding  any cash  received  on
               account of accrued interest or accrued  distributions),  plus the
               additional  consideration,  if any, to be received by the Company
               upon  the

                                       7
<PAGE>

               conversion or exchange of such  securities or the exercise of any
               related options or rights (the  consideration  in each case to be
               determined in the manner provided in Sections 7(c) and 7(d)).

          (vi) In the event of any  change in the  number of Shares  deliverable
               upon exercise of any such options or rights or  securities  other
               than a change resulting from the antidilution provisions thereof,
               the  number  of  Shares  purchasable  upon the  exercise  of this
               Warrant  shall  be  readjusted  effective  as of the date of such
               change to the  number  which  would  have been  obtained  had the
               adjustment  made upon the  issuance of such  options or rights or
               securities  not  converted  prior to such  change or  options  or
               rights or  securities  related to such  securities  not converted
               prior to such change been made on the basis of such change.

          (vii)On the expiration of any such options or rights,  the termination
               of any such rights to convert or exchange  or the  expiration  of
               any options or rights related to such convertible or exchangeable
               securities, the number of Shares purchasable upon the exercise of
               this  Warrant  shall  forthwith be  readjusted  to such number as
               would have obtained had the adjustment  made upon the issuance of
               such options, rights,  securities or options or rights related to
               such  securities been made upon the basis of the issuance of only
               the number of Shares  actually  issued upon the  exercise of such
               options  or  rights,  upon the  conversion  or  exchange  of such
               securities, or upon the exercise of the options or rights related
               to such securities and subsequent conversion or exchange thereof

     (i)  No adjustment shall be required pursuant to this Section 7 unless such
adjustment would require an increase or decrease of at least 1% in the number of
Shares purchasable hereunder;  provided,  however, that any adjustments which by
reason of this Section 7(i) are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this
Section 7 shall be made to the nearest one-hundredth of a Share.

     (j)  The term Fair Market  Value as used in this  Section 7 with respect to
assets or property received by the Company or any other person shall be the fair
market  value,  regardless  of my prior  accounting  treatment of such assets or
property,  determined  in good faith by agreement of the Holder and the Board of
Directors  of the  Company.  If the Holder and the Board of  Directors  shall be
unable to agree as to such fair market  value,  the fair  market  value shall be
determined by the independent  certified public accountant at that time retained
by the  Company  to audit its books and  records,  and a  determination  by such
independent  certified public accountant shall be final,  conclusive and binding
or, if there be none,  or if such  accountant  shall refuse or be unable to make
such a determination then the sole issue of fair market value shall be submitted
to and settled by biding  arbitration  under and pursuant to the Oregon  Uniform
Arbitration  Act and the  rules  and  regulations  of the  American  Arbitration
Association,  and the decision or award of the arbitrator or arbitrators in such
arbitration  shall be final,  conclusive and binding and a final judgment may be
entered thereon by any court of competent jurisdiction.

                                       8
<PAGE>

     (k)  The Company will not, by any voluntary action,  avoid or seek to avoid
the  observance or  performance  of any of the terms to be observed or performed
hereunder  by the  Company,  but will at all times in good  faith  assist in the
carrying  out of all the  provisions  of this Section 7 and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the Holder of this Warrant against impairment.

8.   Notice.

     (a)  Whenever  the number of Shares  purchasable  hereunder  is adjusted as
herein  provided,  the  Company  shall  cause  to be  mailed  to the  Holder  in
accordance  with the  provisions of this Section 8 a notice (i) stating that the
number of Shares  purchasable  upon exercise of this Warrant have been adjusted,
(ii) setting forth the adjusted number of Shares  purchasable  upon the exercise
of a Warrant,  and (iii) showing in reasonable  detail the  computations and the
facts,  including  the amount of  consideration  received or deemed to have been
received by the Company, upon which such adjustments are based.

     (b)  In case:  (i) the  Company  shall take a record of the  holders of its
common  stock (or other  stock or  securities  at the time  receivable  upon the
exercise  of this  Warrant)  for the  purpose of  entitling  them to receive any
dividend or other distributions,  or any rights to subscribe for or purchase any
shares of stock of any class or any securities,  or to receive any other rights,
or (ii) of any capital  reorganization of the Company,  any  reclassification of
the capital  stock of the Company,  any  consolidation  or merger of the Company
with or into another entity,  or any conveyance of all or  substantially  all of
the assets of the Company to another entity, or (iii) any voluntary dissolution,
liquidation  or  winding-up  of the Company,  then,  and in each such case,  the
Company  will mail or cause to be mailed to the Holder a notice  specifying,  as
the case may be (A) the date on which a record is to be taken for the purpose of
such dividend,  distribution  or right,  and stating the amount and character of
such  dividend,   distribution   or  right,  or  (b)  the  date  on  which  such
reorganization,    reclassification,    consolidation,    merger,    conveyance,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of common stock (or such stock or
securities at the time  receivable  upon the exercise of this Warrant)  shall be
entitled  to  exchange  their  shares of common  stock (or such  other  stock or
securities)   for   securities   or  other   property   deliverable   upon  such
reorganization,    reclassification,    consolidation,    merger,    conveyance,
dissolution,  liquidation  or  winding-up.  Such notice shall be mailed at least
fifteen (15) days prior to the date specified therein.

9.   Fractional  Shares. The Company shall not be required to issue any fraction
of a Share upon the  exercise of  Warrants.  If more than one  Warrant  shall be
surrendered  for  exercise  at one time by the same  Holder,  the number of full
Shares which shall be issuable  upon  exercise  thereof shall be computed on the
basis of the  aggregate  number of Shares with  respect to which this Warrant is
exercised.  If any fractional  interest in a Share shall be deliverable upon the
exercise of this Warrant,  the Company shall make an adjustment therefor in cash
equal to such fraction  multiplied by the current  market price of the Shares on
the business day next preceding the day of exercise.

                                       9
<PAGE>

10.  Loss or Destruction.  Upon receipt of evidence  satisfactory to the Company
of the loss, theft, destruction,  or mutilation of This Warrant Certificate and,
in the  case of any  such  loss,  theft  or  destruction,  upon  delivery  of an
indemnity  agreement or bond  satisfactory in form,  substance and amount to the
Company or, in the case any such mutilation,  upon surrender and cancellation of
this Warrant Certificate,  the Company at its expense will, execute and deliver,
in lieu thereof, a new Warrant Certificate of like tenor.

11.  Survival.  The various  rights and  obligations of the Holder hereof as set
forth herein shall survive the exercise of the Warrants  represented  hereby and
the surrender of this Warrant Certificate.

12.  Notices.  Whenever  any notice,  payment of any  purchase  price,  or other
communication  is  required  to be given or  delivered  under  the terms of this
Warrant,  it shall be in  writing  and and will be deemed to have been  given or
delivered on the date such notice, purchase price or other communication is sent
by  facsimile,  provided  that a copy of the notice is sent by  Federal  Express
within  twenty-four hours  thereafter,  directed to the other parties (or to the
party  required  to be provided  with such  notice) at the  following  facsimile
numbers and addresses::

          If to the Company:

          The Neptune Society
          3500 West Olive, Suite 1430
          Burbank, CA 91505
          Phone:
          Facsimile: (818) 953-9844

          If to Holder:

          Green Leaf Investors I, LLC
          4444 Lakeside Drive, Suite 340
          Burbank, CA 01595-4068
          Attn:  Tom R. Camp
          Phone: (818) 840-1500
          Facsimile: (818) 556-6994

With a copy of any notice to Investor to:

                                       10
<PAGE>

          Jeffrey C. Wolfstone
          Lane Powell Spears Lubersky LLP
          601 SW Second Avenue, Suite 2100
          Portland, OR 97204-3158
          Phone: (503) 778-3158
          Facsimile: (503) 778-2200

Any party may, from time to time advise the others, by notice in writing, of any
change of address of the party.  From and after the giving of that  notice,  the
address therein  specified shall be deemed to be the address of the party giving
that notice.

                                       11
<PAGE>

                                     THE NEPTUNE SOCIETY, INC.

                                     By:    [Illegible]
                                     Title: -----------------------------------
                                     Date:  August 8, 2001

WITNESS:

[Illegible]
Witness Signature

                                       12
<PAGE>

                                  EXERCISE FORM

TO:   THE NEPTUNE SOCIETY, INC.

The undersigned  hereby exercises the right to acquire shares of Common Stock in
the capital stock of THE NEPTUNE SOCIETY,  INC. (the "Company") according to the
terms of the Warrant Certificate to which this Exercise Form is attached.

The undersigned hereby represents and warrants to the Company as follows (circle
one):

(a) the  undersigned  has  executed  and  delivered  to the  Company  Schedule A
attached hereto; or

(b) the undersigned has delivered to the Company a written opinion of counsel to
the effect that the exercise of the Warrant by the undersigned is not subject to
registration  under the United  States  Securities  Act of 1933, as amended (the
"1933 Act"), or the securities laws of any state of the United States.

"United States" and "U.S.  person" are as defined by Regulation S under the 1933
Act.

Number of Common Stock:

DATED at ------------ this --- day of --------------, ---------.

------------------------------          ---------------------------------------
Witness Signature                       Signature of Holder

                                        ---------------------------------------
                                        Print Name of Holder

                                        ---------------------------------------
                                        Address

                                        ---------------------------------------
                                        City, State and Zip Code

                                       13
<PAGE>

                                   SCHEDULE A

In  connection  with the  exercise  of the  Warrant to which this  Schedule A is
attached, the undersigned (the "Subscriber") covenants,  represents and warrants
to The Neptune Society, Inc. (the "Company") that:

(a)  the  Subscriber has such knowledge and experience in financial and business
     matters to be capable of  evaluating  the merits and risks of an investment
     in the  Shares  and it is  able to bear  the  economic  risk of loss of its
     entire investment;

(b)  the Company has provided to it the opportunity to ask questions and receive
     answers  concerning the terms and conditions of the offering and it has had
     access to such  information  concerning  the  Company as it has  considered
     necessary or  appropriate  in connection  with its  investment  decision to
     acquire the Shares;

(c)  the Subscriber is acquiring the Shares for its own account,  for investment
     purposes  only and not  with a view to any  resale,  distribution  or other
     disposition  of the Shares in  violation  of the United  States  securities
     laws;

(d)  the  Subscriber  understands  that the Shares have not been and will not be
     registered under the United States  Securities Act of 1933, as amended (the
     "1933 Act"),  or the securities  laws of any state of the United States and
     that the sale contemplated hereby is being made in reliance on an exemption
     from such registration requirements;

(e)  the  Subscriber  has not  purchased  the  Shares as a result of any form of
     general  solicitation  or general  advertising,  including  advertisements,
     articles,  notices  or other  communications  published  in any  newspaper,
     magazine or similar media or broadcast over radio,  or  television,  or any
     seminar  or  meeting   whose   attendees   have  been  invited  by  general
     solicitation or general advertising.

(f)  if the Subscriber  decides to offer, sell or otherwise  transfer any of the
     Shares,  it will not offer,  sell or otherwise  transfer any of such Shares
     directly or indirectly, unless:

     (i)  the sale is to the Company,

     (ii) the sale is made outside the United  States in a  transaction  meeting
          the requirements of Rule 904 of Regulation S under the 1933 Act and in
          compliance with applicable local laws and regulations;

     (iii) the Shares have been registered under the 1933 Act;

                                      A-1
<PAGE>

     (iv) the sale is made  pursuant  to the  exemption  from  the  registration
          requirements under the 1933 Act provided by Rule 144 thereunder and in
          accordance with any applicable state securities or "Blue Sky" laws; or

     (v)  the  Shares  are  sold  in  a   transaction   that  does  not  require
          registration  under  the 1933  Act or any  applicable  state  laws and
          regulations  governing  the offer and sale of  securities,  and it has
          prior to such sale  furnished  to the  Company  an  opinion of counsel
          reasonably satisfactory to the Company;

(g)  the  certificates  representing  the Shares will bear a legend stating that
     such shares have not been  registered  under the 1933 Act or the securities
     laws of any state of the United  States and may not be offered  for sale or
     sold unless  registered  under the 1933 Act and the securities  laws of all
     applicable   states  of  the  United  States  or  an  exemption  from  such
     registration requirements is available, and

(h)  the Subscriber  consents to the Company making a notation on its records or
     giving  instructions  to any  transfer  agent  of the  Company  in order to
     implement the restrictions on transfer set forth and described herein.

          Dated this ___ day of _______________________.

                                        ---------------------------------------
                                        (Name of Subscriber - please print)

                                        By: -----------------------------------
                                                (Authorized Signature)

                                        ---------------------------------------
                                                (Official Capacity or Title)

                                        ---------------------------------------
                                        (Please  print  name  of  individual
                                        whose  signature  appears  above  if
                                        different   than  the  name  of  the
                                        Subscriber printed above)

                                      A-2

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