Document:

EXHIBIT 10.72

 

COMMERCIAL
GUARANTY

Reference is made to that certain Promissory
Note dated as of March 2, 2006 (the “Note”) made
by Earth Biofuels, Inc., a Delaware corporation (“Maker”),
to the order  of Southern Biofuels, LLC,
a Mississippi limited liability company (“Payee”), in
the principal amount of $850,000 (the “Principal Amount”)
and an as yet unsigned asset purchase agreement.  Capitalized terms used but not otherwise
defined herein shall have the meanings prescribed to them in the Note.

THIS IS A “CONTINUING GUARANTY” BY WHICH THE
UNDERSIGNED GUARANTEES THE FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND
SATISFACTION OF ALL OF THE INDEBTEDNESS AND OBLIGATIONS INCURRED BY EARTH
BIOFUELS  WITH RESPECT TO THE ASSET
PURCHASE AGREEMENT BETWEEN EARTH BIOFUELS AND SOUTHERN BIOFUELS.

The undersigned hereby individually and
personally guarantees the prompt payment of all amounts due under the Note, and
any other amounts  which may arise from
and due to the terms and conditions of said asset purchase agreement.  The undersigned also guarantees the prompt
payment of one-third of any interest that may accrue on the Note.

The undersigned waives any requirement of
notice of default or of any of the other matters referred to in this guaranty
(this “Guaranty”), any requirement of
diligence on the part of Payee or any holder of the Note, and all
counterclaims, set-offs, abatements and defenses whatsoever against the Payee
or any holder of the Note.

This Guaranty is in no way contingent upon
any attempt to collect from the Maker or any other Guarantor or to enforce or
proceed against any security or collateral given to secure the Note.

The validity and enforceability of this
Guaranty shall be unaffected by any transfer, assignment or endorsement of the
Note, any indulgence or waiver granted with respect to any payment due
thereunder or any remedy provided for therein or in any document referred to
therein (including the release of any collateral) or any other thing that  might reduce or  vary the risk of the Maker or operate as a
discharge of the Maker as a matter of law.

 

This Guaranty shall be enforceable by any
holder of the Note, and each such holder shall have the full benefit of this
Guaranty without notice to the undersigned upon or after endorsement.

The undersigned agrees to pay upon demand all
o Payee’s costs and expenses, including Payee’s attorneys’ fees and Payee’s
legal expenses, incurred in connection with the enforcement of this
Guaranty.  If there is a lawsuit,
Guarantor agrees upon Payee’s request to submit to the jurisdiction of the
courts of Rankin County, State of Mississippi.

This Guaranty constitutes a guarantee of
payment and not of collection.

This Guaranty shall not terminate until all
the obligations under the asset purchase agreement have been fully and
completely satisfied.

THIS GUARANTY SHALL BE GOVERNED BY AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
MISSISSIPPI, WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.  THIS GUARANTY IS MADE JOINTLY WITH TOMMY JOHNSON
AND BRUCE BLACKWELL AND BECOMES EFFECTIVE ONLY UPON THE SIGNATURES OF THOS
INDIVIDUALS ON EACH OF THEIR RESPECTIVE GUARANTY.

	
  Dated: March 2, 2006

  	
   

  	
  /s/ Dennis McLaughlin

  
	
   

  	
   

  	
  Dennis McLaughlin

  

 

 2EXHIBIT 10.73

PROMISSORY NOTE

	
  $1,100,000.00

  	
  March 31, 2006

  

FOR VALUE RECEIVED, the
undersigned, Earth Biofuels, Inc., a Delaware corporation (“Maker”), hereby promises to pay to
the order of Southern Biofuels, LLC, a Mississippi limited liability company (“Payee”), the principal sum of One
Million One Hundred Thousand and No/100 Dollars ($1,100,000.00), together with
interest thereon as provided for below.

The
principal of this Promissory Note (this “Note”)
shall be due and payable June 29, 2006.

The
unpaid principal balance of this Note shall bear interest from the date hereof
until paid in full at the rate of 7.25% per annum.

Principal
and all accrued interest are payable at P.O. Box 54461, Jackson, Mississippi
39288, or at such other address as the Payee of this Note may from time to time
designate in writing.

In
the event that Maker fails to pay any principal of or interest on this Note
when due:

(1)           Maker shall convey to Payee a
percentage ownership interest (the “Interest”)
in the Plant (as defined below) that is equal to the product of (a) twenty-five
percent (25%) multiplied (b) a fraction, the numerator of which is the amount
that Maker has failed to pay when due, and the denominator of which is
$1,100,000.

(2)           Notwithstanding its minority
ownership interest in the Plant, Payee shall have exclusive control of the
Plant and its operations.  Payee also
shall be given full access to the Plant and the Plant site, free of any rent
obligations.  Payee further shall be
given possession of all permits and approvals for the operation of the
Plant.  Maker shall use its continuing
and best efforts to make the Plant, or cause the Plant to be made, Operational
(as defined below), if it is not then already Operational.

(3)           Once Maker has made the necessary
payments of principal and/or interest, Payee shall convey the Interest back to
Maker, and the rights and obligations of Maker and Payee under paragraph (2)
shall cease.

For
purposes of this Note, (w) “Plant”
means that certain biodiesel refinery owned by Maker and located in Durant, Oklahoma,
which was previously owned by Payee; (x) “Operational”
means that the Plant is processing biodiesel from materials in operational
conditions agreed upon by Maker and Payee to the specifications of ASTM D6751
at the Required Rate; (y) “Required Rate”
means processing 6,300 to 7,700 gallons of biodiesel per day as per conditions
stated in the Letter of Intent; and (z) “Letter of Intent”
means that certain letter agreement, dated as of February 13, 2006, between
Maker and Payee.

The
Payee shall not, by any act (except by a written instrument executed and
delivered in accordance with this paragraph), delay, indulgence, omission or
otherwise be deemed to have waived any right, remedy or other power hereunder or
to have acquiesced in any default hereunder. 
No waiver, amendment, supplement or other modification of any of the terms
or provisions of this Note

shall be effective
unless set forth in a writing executed and delivered by the party sought to be
charged.

Maker
waives presentment, diligence, protest, demand, notice of demand, notice of
acceptance or reliance, notice of non-payment, notice of dishonor, notice of
protest and all other notices to parties in connection with the delivery,
acceptance, performance, default or enforcement of this Note, any endorsement
or guaranty of this Note, or any collateral.

The undersigned
agrees to pay upon demand all of Payee’s costs and expenses, including Payee’s
attorneys’ fees and Payee’s legal expenses, incurred in connection with the
collection of this Note. If there is a lawsuit, Guarantor agrees upon Payee’s
request to submit to the jurisdiction of the courts of Rankin County, State of
Mississippi.

THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF MISSISSIPPI, WITHOUT REGARD TO THE CONFLICTS OF LAWS
PRINCIPLES THEREOF.

IN
WITNESS WHEREOF, Maker has executed and delivered this Note as of the date set
forth above.

	
   

  	
  EARTH BIOFUELS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DENNIS MCLAUGHLIN

  	
   

  
	
   

  	
  Name:

  	
  Dennis McLaughlin

  
	
   

  	
  Title:

  	
  CEOEXHIBIT 10.74

 

COMMERCIAL GUARANTY

Reference is made to that certain Promissory Note dated as of March 31,
2006 (the “Note”) made by Earth
Biofuels, Inc., a Delaware corporation (“Maker”), to
the order of Southern Biofuels, LLC, a Mississippi limited liability company (“Payee”), in the principal amount of
$1,100,000 (the “Principal Amount”).  Capitalized terms used but not otherwise
defined herein shall have the meanings prescribed to them in the Note.

THIS IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTEE THE FULL AND
PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF ALL OF THE INDEBTEDNESS AND
OBLIGATIONS INCURRED BY EARTH BIOFUELS WITH RESPECT TO THE NOTE.

The undersigned hereby guarantees the prompt payment of all amounts due
under the Note.  The undersigned also
guarantees the prompt payment of any interest that may accrue on the Note.

The undersigned waives any requirement of notice of default or of any
of the other matters referred to in this guaranty (this “Guaranty”),
any requirement of diligence on the part of Payee or any holder of the Note,
and all counterclaims, set-offs, abatements and defenses whatsoever against the
Payee or any holder of the Note.

This Guaranty is in no way contingent upon any attempt to collect from
the Maker or to enforce or proceed against any security or collateral given to
secure the Note.

The validity and enforceability of this Guaranty shall be unaffected by
any transfer, assignment or endorsement of the Note, any indulgence or waiver
granted with respect to any payment due thereunder or any remedy provided for
therein or in any document referred to therein (including the release of any
collateral) or any other thing that might reduce or vary the risk of the Maker
or operate as a discharge of the Maker as a matter of law.

This Guaranty shall be enforceable by any holder of the Note, and each
such holder shall have the full benefit of this Guaranty without notice to the
undersigned upon or after endorsement.

 

 

The undersigned agrees to pay upon demand all of Payee’s costs and
expenses, including Payee’s attorneys’ fees and Payee’s legal expenses,
incurred in connection with the enforcement of this Guaranty. If there is a
lawsuit, Guarantor agrees upon Payee’s request to submit to the jurisdiction of
the courts of Rankin County, State of Mississippi.

This Guaranty constitutes a guarantee of payment and collection.

This Guaranty shall not terminate until all the obligations under the
Note have been fully and completely satisfied.

THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF MISSISSIPPI, WITHOUT REGARD TO THE
CONFLICTS OF LAWS PRINCIPLES THEREOF.

	
  Dated: March 31, 2006

  	
   

  	
  /s/ Dennis McLaughlin

  
	
   

  	
   

  	
  Dennis McLaughlin

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