Document:

Exhibit
10.9

Space Above This Line For Recording Data

This instrument was prepared by Note Custodian,
CENTRUE BANK, 321 W MAIN ST, OTTAWA, Illinois 61350-2824

When recorded return to Note Custodian, CENTRUE BANK,
321 W MAIN ST, OTTAWA, Illinois 61350-2824

MORTGAGE

DATE AND PARTIES.                      The date of
this Mortgage (Security Instrument) is January 9, 2007.  The parties and their addresses are:

MORTGAGOR:

NOVA BIOFUELS SENECA LLC

A Delaware Limited Liability Company

2777 ALLEN PARKWAY SUITE 860 

HOUSTON, Texas 77019

LENDER:

CENTRUE BANK 

Organized and existing under the laws of Illinois 

201 E. Main St. 

Streator, Illinois 61364

1.                                      CONVEYANCE.  For good and valuable consideration, the
receipt and sufficiency of which is acknowledged, and to secure the Secured
Debts and Mortgagor’s performance under this Security Instrument, Mortgagor
grants, bargains, sells, conveys, mortgages and warrants to Lender, the
following described property:

LOT 1 IN SHIPYARD INDUSTRIAL PARK, BEING A SUBDIVISION
OF PART OF THE EAST FRACTIONAL HALF OF SECTION 25, TOWNSHIP 33 NORTH, RANGE 5
EAST OF THE THIRD PRINCIPAL MERIDIAN AND PART OF THE NORTHWEST FRACTIONAL
QUARTER OF SECTION 30, TOWNSHIP 33 NORTH, RANGE 6 EAST OF THE THIRD PRINCIPAL
MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED IN LASALLE COUNTY ON 9
NOVEMBER 2006 AS DOCUMENT 2006-29449 AND RECORDED IN GRUNDY COUNTY ON 8
NOVEMBER 2006 AS DOCUMENT 471016;

SITUATED IN LASALLE AND GRUNDY COUNTIES, ILLINOIS.

PIN NO.

24-25-218-000

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04-30-100-003

The property is located in LASALLE & GRUNDY County
at LOT 1 IN SHIPYARD INDUSTRIAL PARK, SENECA Illinois.

Together with all rights, easements, appurtenances,
royalties, mineral rights, oil and gas rights, all water and riparian rights,
wells, ditches and water stock, crops, timber, all diversion payments or third
party payments made to crop producers and all existing and future improvements,
structures, fixtures, and replacements that may now, or at any time in the
future, be part of the real estate described (all referred to as Property).  This Security Instrument will remain in
effect until the Secured Debts and all underlying agreements have been
terminated in writing by Lender.

2.                                      MAXIMUM
OBLIGATION LIMIT. 
The total principal amount secured by this Security Instrument at any
one time will not exceed $2,520,000.00. This limitation of amount does not
include interest, attorneys’ fees and other fees and charges validly made
pursuant to this Security Instrument. 
Also, this limitation does not apply to advances made under the terms of
this Security Instrument to protect Lender’s security and to perform any of the
covenants contained in this Security Instrument.

3.                                      SECURED DEBTS.  The term “Secured Debts” includes and this
Security Instrument will secure each of the following:

A.                                    Specific
Debts.  The following
debts and all extensions, renewals, refinancings, modifications and
replacements.  A promissory note or other
agreement, No. 811006538, dated January 9, 2007, from Mortgagor to Lender, with
a loan amount of $2,520,000.00, with an interest rate of 8.25 percent per year
and maturing on January 9, 2010.

B.                                    All Debts.  All present and future debts from Mortgagor
to Lender, even if this Security Instrument is not specifically referenced, or
if the future debt is unrelated to or of a different type than this debt.  If more than one person signs this Security
Instrument, each agrees that it will secure debts incurred either individually
or with others who may not sign this Security Instrument.  Nothing in this Security Instrument
constitutes a commitment to make additional or future loans or advances.  Any such commitment must be in writing.  In the event that Lender fails to provide any
required notice of the right of rescission, Lender waives any subsequent
security interest in the Mortgagor’s principal dwelling that is created by this
Security Instrument.  This Security
Instrument will not secure any debt for which a non-possessory, non-purchase
money security interest is created in “household goods” in connection with a “consumer
loan,” as those terms are defined by federal law governing unfair and deceptive
credit practices.  This Security
Instrument will not secure any debt for which a security interest is created in
“margin stock” and Lender does not obtain a “statement of purpose,” as defined
and required by federal law governing securities.

C.                                    Sums Advanced.  All sums advanced and expenses incurred by
Lender under the terms of this Security Instrument.

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4.                                      PAYMENTS.  Mortgagor agrees that all payments under the
Secured Debts will be paid when due and in accordance with the terms of the
Secured Debts and this Security Instrument.

5.                                      PRIOR SECURITY
INTERESTS.  With
regard to any other mortgage, deed of trust, security agreement or other lien
document that created a prior security interest or encumbrance on the Property,
Mortgagor agrees:

A.                                    To
make all payments when due and to perform or comply with all covenants.

B.                                    To
promptly deliver to Lender any notices that Mortgagor receives from the holder.

C.                                    Not
to allow any modification or extension of, nor to request any future advances
under any note or agreement secured by the lien document without Lender’s prior
written consent.

6.                                      CLAIMS AGAINST
TITLE.  Mortgagor
will pay all taxes, assessments, liens, encumbrances, lease payments, ground
rents, utilities, and other charges relating to the Property when due.  Lender may require Mortgagor to provide to
Lender copies of all notices that such amounts are due and the receipts
evidencing Mortgagor’s payment. 
Mortgagor will defend title to the Property against any claims that
would impair the lien of this Security Instrument.  Mortgagor agrees to assign to Lender, as
requested by Lender, any rights, claims or defenses Mortgagor may have against
parties who supply labor or materials to maintain or improve the Property.

7.                                      DUE ON SALE OR
ENCUMBRANCE. 
Lender may, at its option, declare the entire balance of the Secured
Debt to be immediately due and payable upon the creation of, or contract for
the creation of, any lien, encumbrance, transfer or sale of all or any part of
the Property.  This right is subject to
the restrictions imposed by federal law (12 C.F.R. 591), as applicable.  Lender acknowledges that Borrower may be
funding construction improvements to the property.  This construction will not trigger this
clause unless liens of record are filed.

8.                                      TRANSFER OF AN
INTEREST IN THE MORTGAGOR.  Other than as a result of efforts to maintain
or increase capital, Lender may demand immediate payment if:

A.                                    A
beneficial interest in Mortgagor is sold or transferred.

B.                                    There
is a change in either the identity or number of members of a partnership or
similar entity.

C.                                    There
is a change in ownership of more than 25 percent of the voting stock of a
corporation or similar entity.

However, Lender may not demand payment in the above
situations if it is prohibited by law as of the date of this Security
Instrument.

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9.                                      WARRANTIES AND
REPRESENTATIONS. 
Mortgagor makes to Lender the following warranties and representations
which will continue as long as this Security Instrument is in effect:

A.                                    Power.  Mortgagor is duly organized, and validly
existing and in good standing in all jurisdictions in which Mortgagor
operates.  Mortgagor has the power and
authority to enter into this transaction and to carry on Mortgagor’s business
or activity as it is now being conducted and, as applicable, is qualified to do
so in each jurisdiction in which Mortgagor operates.

B.                                    Authority.  The execution, delivery and performance of
this Security Instrument and the obligation evidenced by this Security Instrument
are within Mortgagor’s powers, have been duly authorized, have received all
necessary governmental approval, will not violate any provision of law, or
order of court or governmental agency, and will not violate any agreement to
which Mortgagor is a party or to which Mortgagor is or any of Mortgagor’s
property is subject.

C.                                    Name and Place
of Business. 
Other than previously disclosed in writing to Lender, Mortgagor has not
changed Mortgagor’s name or principal place of business within the last 10 years
and has not used any other trade or fictitious name.  Without Lender’s prior written consent,
Mortgagor does not and will not use any other name and will preserve Mortgagor’s
existing name, trade names and franchises.

10.                               PROPERTY
CONDITION, ALTERATIONS AND INSPECTION.  Mortgagor will keep the Property in good
condition and make all repairs that are reasonably necessary.  Mortgagor will not commit or allow any waste,
impairment, or deterioration of the Property. 
Mortgagor will keep the Property free of noxious weeds and grasses.  Mortgagor agrees that the nature of the
occupancy and use will not substantially change without Lender’s prior written
consent.  Mortgagor will not permit any
change in any license, restrictive covenant or easement without Lender’s prior
written consent.  Mortgagor will notify
Lender of all demands, proceedings, claims, and actions against Mortgagor, and
of any loss or damage to the Property.

No portion of the Property will be removed, demolished
or materially altered without Lender’s prior written consent except that
Mortgagor has the right to remove items of personal property comprising a part
of the Property that become worn or obsolete, provided that such personal
property is replaced with other personal property at least equal in value to
the replaced personal property, free from any title retention device, security
agreement or other encumbrance.  Such
replacement of personal property will be deemed subject to the security
interest created by this Security Instrument. 
Mortgagor will not partition or subdivide the Property without Lender’s
prior written consent.

Lender or Lender’s agents may, at Lender’s option,
enter the Property at any reasonable time for the purpose of inspecting the
Property.  Lender will give Mortgagor notice
at the time of or before an inspection specifying a reasonable purpose for the
inspection.  Any inspection of the
Property will be entirely for Lender’s benefit and Mortgagor will in no way
rely on Lender’s inspection.

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11.                               AUTHORITY TO
PERFORM.  If Mortgagor
fails to perform any duty or any of the covenants contained in this Security
Instrument, Lender may, without notice, perform or cause them to be
performed.  Mortgagor appoints Lender as
attorney in fact to sign Mortgagor’s name or pay any amount necessary for
performance.  Lender’s right to perform
for Mortgagor will not create an obligation to perform, and Lender’s failure to
perform will not preclude Lender from exercising any of Lender’s other rights
under the law or this Security Instrument. 
If any construction on the Property is discontinued or not carried on in
a reasonable manner, Lender may take all steps necessary to protect Lender’s
security interest in the Property, including completion of the construction.

12.                               ASSIGNMENT OF
LEASES AND RENTS. 
Mortgagor assigns, grants, bargains, conveys, mortgages and warrants to
Lender as additional security all the right, title and interest in the
following (Property).

A.                                    Existing
or future leases, subleases, licenses, guaranties and any other written or
verbal agreements for the use and occupancy of the Property, including but not
limited to any extensions, renewals, modifications or replacements (Leases).

B.                                    Rents,
issues and profits, including but not limited to security deposits, minimum
rents, percentage rents, additional rents, common area maintenance charges,
parking charges, real estate taxes, other applicable taxes, insurance premium
contributions, liquidated damages following default, cancellation premiums, “loss
of rents” insurance, guest receipts, revenues, royalties, proceeds, bonuses,
accounts, contract rights, general intangibles, and all rights and claims which
Mortgagor may have that in any way pertain to or are on account of the use or
occupancy of the whole or any part of the Property (Rents).

In the event any item listed as Leases or Rents is
determined to be personal property, this Assignment will also be regarded as a
security agreement.  Mortgagor will
promptly provide Lender with copies of the Leases and will certify these Leases
are true and correct copies.  The
existing Leases will be provided on execution of the Assignment, and all future
Leases and any other information with respect to these Leases will be provided
immediately after they are executed. 
Mortgagor may collect, receive, enjoy and use the Rents so long as
Mortgagor is not in default.  Mortgagor
will not collect in advance any Rents due in future lease periods, unless
Mortgagor first obtains Lender’s written consent.  Upon default, Mortgagor will receive any
Rents in trust for Lender and Mortgagor will not commingle the Rents with any
other funds.  When Lender so directs,
Mortgagor will endorse and deliver any payments of Rents from the Property to
Lender.  Amounts collected will be
applied at Lender’s discretion to the Secured Debts, the costs of managing,
protecting and preserving the Property, and other necessary expenses.  Mortgagor agrees that this Security
Instrument is immediately effective between Mortgagor and Lender and effective
as to third parties on the recording of this Assignment.  As long as this Assignment is in effect,
Mortgagor warrants and represents that no default exists under the Leases, and
the parties subject to the Leases have not violated any applicable law on
leases, licenses and landlords and tenants. 
Mortgagor, at its sole cost and expense, will keep, observe and perform,
and require all other parties to the Leases to comply with the Leases and any
applicable law.  If Mortgagor or any
party to the Lease defaults or fails to observe any applicable law, Mortgagor
will promptly notify Lender.  If
Mortgagor neglects or refuses to 

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enforce compliance with the terms of the Leases, then
Lender may, at Lender’s option, enforce compliance.  Mortgagor will not sublet, modify, extend,
cancel, or otherwise alter the Leases, or accept the surrender of the Property
covered by the Leases (unless the Leases so require) without Lender’s
consent.  Mortgagor will not assign,
compromise, subordinate or encumber the Leases and Rents without Lender’s prior
written consent.  Lender does not assume
or become liable for the Property’s maintenance, depreciation, or other losses
or damages when Lender acts to manage, protect or preserve the Property, except
for losses and damages due to Lender’s gross negligence or intentional
torts.  Otherwise, Mortgagor will
indemnify Lender and hold Lender harmless for all liability, loss or damage
that Lender may incur when Lender opts to exercise any of its remedies against
any party obligated under the Leases.

13.                               DEFAULT.  Mortgagor will be in default if any of the
following occur:

A.                                    Payments.  Mortgagor fails to make a payment in full
when due.

B.                                    Insolvency or
Bankruptcy.  The
death, dissolution or insolvency of, appointment of a receiver by or on behalf
of, application of any debtor relief law, the assignment for the benefit of
creditors by or on behalf of, the voluntary or involuntary termination of
existence by, or the commencement of any proceeding under any present or future
federal or state insolvency, bankruptcy, reorganization, composition or debtor
relief law by or against Mortgagor, Borrower, or any co-signer, endorser,
surety or guarantor of this Security Instrument or any other obligations
Borrower has with Lender.

C.                                    Business
Termination. 
Mortgagor merges, dissolves, reorganizes, ends its business or
existence, or a partner or majority owner dies or is declared legally
incompetent.

D.                                    Failure to
Perform. 
Mortgagor fails to perform any material condition or to keep any
material promise or covenant of this Security Instrument.

E.                                      Other
Documents.  A
material default occurs under the terms of any other document relating to the
Secured Debts.

F.                                      Other
Agreements. 
Mortgagor is in material default on any other debt or agreement
Mortgagor has with Lender.

G.                                    Misrepresentation.  Mortgagor makes any verbal or written
statement or provides any financial information that is materially untrue,
inaccurate, or conceals a material fact at the time it is made or provided.

H.                                    Judgment.  Mortgagor fails to satisfy or appeal any
judgment against Mortgagor.

I.                                         Forfeiture.  The Property is used in a manner or for a
purpose that threatens confiscation by a legal authority.

J.                                      Name Change.  Mortgagor changes Mortgagor’s name or assumes
an additional name without notifying Lender before making such a change.

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K.                                    Property
Transfer. 
Mortgagor transfers all or a substantial part of Mortgagor’s money or
property.  This condition of default, as
it relates to the transfer of the Property, is subject to the restrictions
contained in the DUE ON SALE section.

L.                                     Property
Value.  Lender
determines in good faith that the value of the Property has materially declined
or is impaired.

M.                                  Material
Change.  Without
first notifying Lender, there is a material change in Mortgagor’s business,
including ownership, management, and financial conditions.

N.                                    Insecurity.                                     Lender determines
in good faith that a material adverse change has occurred in Mortgagor’s
financial condition from the conditions set forth in Mortgagor’s most recent
financial statement before the date of this Security Instrument or that the
prospect for payment or performance of the Secured Debts is impaired for any
reason.

Other than payment defaults, the aforementioned
defaults will not be considered to be a material default unless they continue
for 30 days after Lender has notified Borrower of said default.  Making payments within the 10 day Grace
Period provided in the Note will not be considered a default.

14.                               REMEDIES.  On or after default, Lender may use any and
all remedies Lender has under state or federal law or in any document relating
to the Secured Debts.  Any amounts
advanced on Mortgagor’s behalf will be immediately due and may be added to the
balance owing under the Secured Debts. 
Lender may make a claim for any and all insurance benefits or refunds
that may be available on Mortgagor’s default.

Subject to any right to cure, required time schedules
or any other notice rights Mortgagor may have under federal and state law,
Lender may make all or any part of the amount owing by the terms of the Secured
Debts immediately due and foreclose this Security Instrument in a manner
provided by law upon the occurrence of a default or anytime thereafter.

Upon default, Lender will have the right, without
declaring the whole indebtedness due and payable, to foreclose against all or
any part of the Property and will have the right to possession provided by
law.  This Security Instrument will
continue as a lien on any part of the Property not sold on foreclosure.

All remedies are distinct, cumulative and not
exclusive, and the Lender is entitled to all remedies provided at law or
equity, whether or not expressly set forth. 
The acceptance by Lender of any sum in payment or partial payment on the
Secured Debts after the balance is due or is accelerated or after foreclosure
proceedings are filed will not constitute a waiver of Lender’s right to require
full and complete cure of any existing default. 
By not exercising any remedy, Lender does not waive Lender’s right to
later consider the event a default if it continues or happens again.

15.                               COLLECTION
EXPENSES AND ATTORNEYS’ FEES.  On or after Default, to the extent permitted
by law, Mortgagor agrees to pay all expenses of collection, enforcement or
protection of Lender’s rights and remedies under this Security Instrument or
any other document relating to the Secured Debts.  Mortgagor agrees to pay expenses for Lender
to inspect and preserve the Property and for any recordation costs of releasing
the Property from this Security 

 7
 

Instrument. 
Expenses include all costs and disbursements, including reasonable
attorneys’ fees and collection agency charges, incurred to collect or enforce
this debt.  These expenses are due and
payable immediately.  If not paid
immediately, these expenses will bear interest from the date of payment until
paid in full at the highest interest rate in effect as provided for in the
terms of the Secured Debts.  In addition,
to the extent permitted by the United States Bankruptcy Code, Mortgagor agrees
to pay the reasonable attorneys’ fees incurred by Lender to protect Lender’s
rights and interests in connection with any bankruptcy proceedings initiated by
or against Mortgagor.

16.                               ENVIRONMENTAL
LAWS AND HAZARDOUS SUBSTANCES.  As used in this section, (1) Environmental
Law means, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA, 42 U.S.C.  9601 et seq.), all other federal, state and
local laws, regulations, ordinances, court orders, attorney general opinions or
interpretive letters concerning the public health, safety, welfare, environment
or a hazardous substance; and (2) Hazardous Substance means any toxic,
radioactive or hazardous material, waste, pollutant or contaminant which has
characteristics which render the substance dangerous or potentially dangerous
to the public health, safety, welfare or environment.  The term includes, without limitation, any
substances defined as “hazardous material,” “toxic substance,” “hazardous
waste,” “hazardous substance,” or “regulated substance” under any Environmental
Law.

Mortgagor represents, warrants and agrees that (except
as disclosed in the Environmental Reports identified on Schedule A attached
hereto):

A.                                    Except
as previously disclosed and acknowledged in writing to Lender, no Hazardous
Substance has been, is, or will be located, transported, manufactured, treated,
refined, or handled by any person on, under or about the Property, except in
the ordinary course of business and in strict compliance with all applicable
Environmental Law.

B.                                    Except
as previously disclosed and acknowledged in writing to Lender, Mortgagor has
not and will not cause, contribute to, or permit the release of any Hazardous
Substance on the Property.

C.                                    Mortgagor
will immediately notify Lender if (1) a release or threatened release of
Hazardous Substance occurs on, under or about the Property or migrates or
threatens to migrate from nearby property; or (2) there is a violation of any
Environmental Law concerning the Property. 
In such an event, Mortgagor will take all necessary remedial action in
accordance with Environmental Law.

D.                                    Except
as previously disclosed and acknowledged in writing to Lender, Mortgagor has no
knowledge of or reason to believe there is any pending or threatened
investigation, claim, or proceeding of any kind relating to (1) any Hazardous
Substance located on, under or about the Property; or (2) any violation by
Mortgagor or any tenant of any Environmental Law.  Mortgagor will immediately notify Lender in
writing as soon as Mortgagor has reason to believe there is any such pending or
threatened investigation, claim, or proceeding. 
In such an event, Lender has the right, but not the obligation, to 

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participate in any such
proceeding including the right to receive copies of any documents relating to
such proceedings.

E.                                      Except
as previously disclosed and acknowledged in writing to Lender, Mortgagor and
every tenant have been, are and will remain in full compliance with any
applicable Environmental Law.

F.                                      Except
as previously disclosed and acknowledged in writing to Lender, there are no
underground storage tanks, private dumps or open wells located on or under the
Property and no such tank, dump or well will be added unless Lender first
consents in writing.

G.                                    Mortgagor
will regularly inspect the Property, monitor the activities and operations on
the Property, and confirm that all permits, licenses or approvals required by
any applicable Environmental Law are obtained and complied with.

H.                                    Mortgagor
will permit, or cause any tenant to permit, Lender or Lender’s agent to enter
and inspect the Property and review all records at any reasonable time to
determine (1) the existence, location and nature of any Hazardous Substance on,
under or about the Property; (2) the existence, location, nature, and magnitude
of any Hazardous Substance that has been released on, under or about the
Property; or (3) whether or not Mortgagor and any tenant are in compliance with
applicable Environmental Law.

I.                                         Upon
lender’s request and at any time, Mortgagor agrees, at Mortgagor’s expense, to
engage a qualified environmental engineer to prepare an environmental audit of
the Property and to submit the results of such audit to Lender.  The choice of the environmental engineer who
will perform such audit is subject to Lender’s approval.

J.                                      Lender
has the right, but not the obligation, to perform any of Mortgagor’s
obligations under this section at Mortgagor’s expense.

K.                                    As
a consequence of any breach of any representation, warranty or promise made in
this section, (1) Mortgagor will indemnify and hold Lender and Lender’s
successors or assigns harmless from and against all losses, claims, demands,
liabilities, damages, cleanup, response and remediation costs, penalties and
expenses, including without limitation all costs of litigation and attorneys’
fees, which Lender and Lender’s successors or assigns may sustain; and (2)
at Lender’s discretion, Lender may release this Security Instrument and in
return Mortgagor will provide lender with collateral of at least equal value to
the Property without prejudice to any lender’s rights under this Security
Instrument.

K.                                    Notwithstanding
any of the language contained in this Security Instrument to the contrary, the
terms of this section will survive any foreclosure or satisfaction of this
Security Instrument regardless of any passage of title to Lender or any
disposition by Lender of any or all of the Property.  Any claims and defenses to the contrary are
hereby waived.

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17.                               CONDEMNATION.  Mortgagor will give Lender prompt notice of
any pending or threatened action by private or public entities to purchase or
take any or all of the Property through condemnation, eminent domain, or any
other means.  Mortgagor authorizes Lender
to intervene in Mortgagor’s name in any of the above described actions or claims.  Mortgagor assigns to Lender the proceeds of
any award or claim for damages connected with a condemnation or other taking of
all or any part of the Property.  Such
proceeds will be considered payments and will be applied as provided in this
Security Instrument.  This assignment of
proceeds is subject to the terms of any prior mortgage, deed of trust, security
agreement or other lien document.

18.                               INSURANCE.  Mortgagor agrees to keep the Property insured
against the risks reasonably associated with the Property.  Mortgagor will maintain this insurance in the
amounts Lender requires.  This insurance
will last until the Property is released from this Security Instrument.  What Lender requires pursuant to the
preceding two sentences can change during the term of the Secured Debts.  Mortgagor may choose the insurance company,
subject to Lender’s approval, which will not be unreasonably withheld.

All insurance policies and renewals will include a
standard “mortgage clause” and, where applicable, “loss payee clause.” If
required by Lender, Mortgagor agrees to maintain comprehensive general
liability insurance and rental loss or business interruption insurance in
amounts and under policies acceptable to Lender.  The comprehensive general liability insurance
must name Lender as an additional insured. 
The rental loss or business interruption insurance must be in an amount
equal to at least coverage of one year’s debt service, and required escrow
account deposits (if agreed to separately in writing).

Mortgagor will give Lender and the insurance company
immediate notice of any loss.  All
insurance proceeds will be applied to restoration or repair of the Property or
to the Secured Debts, at Lender’s option. 
If Lender acquires the Property in damaged condition, Mortgagor’s rights
to any insurance policies and proceeds will pass to Lender to the extent of the
Secured Debts.

Mortgagor will immediately notify Lender of
cancellation or termination of insurance. 
If Mortgagor fails to keep the Property insured, Lender may obtain
insurance to protect Lender’s interest in the Property and Mortgagor will pay
for the insurance on Lender’s demand. 
Lender may demand that Mortgagor pay for the insurance all at once, or
Lender may add the insurance premiums to the balance of the Secured Debts and
charge interest on it at the rate that applies to the Secured Debts.  This insurance may include coverages not
originally required of Mortgagor, may be written by a company other than one
Mortgagor would choose, and may be written at a higher rate than Mortgagor
could obtain if Mortgagor purchased the insurance.  Mortgagor acknowledges and agrees that Lender
or one of Lender’s affiliates may receive commissions on the purchase of this
insurance.

19.                               ESCROW FOR
TAXES AND INSURANCE. 
Mortgagor will not be required to pay to Lender funds for taxes and
insurance in escrow.

20.                               CO-SIGNERS.  If Mortgagor signs this Security Instrument
but is not otherwise obligated to pay the Secured Debts, Mortgagor does so only
to mortgage Mortgagor’s interest in 

 10
 

the Property to secure payment of the Secured Debts
and Mortgagor does not agree by signing this Security Instrument to be
personally liable on the Secured Debts. 
If this Security Instrument secures a guaranty between Lender and
Mortgagor, Mortgagor agrees to waive any rights that may prevent Lender from
bringing any action or claim against Mortgagor or any party indebted under the
obligation.  These rights may include,
but are not limited to, any anti-deficiency or one-action laws.

21.                               WAIVERS.  Except to the extent prohibited by law,
Mortgagor waives all homestead exemption, redemption, reinstatement and
appraisement rights relating to the Property.

22.                               FIXTURE
FILING. 
Mortgagor gives to Lender a security interest in all goods that
Mortgagor owns now or in the future and that are or will become fixtures
related to the Property.

23.                               PERSONAL
PROPERTY. 
Mortgagor gives to Lender a security interest in all personal property
located on or connected with the Property, including all farm products,
inventory, equipment, accounts, documents, instruments, chattel paper, general
intangibles, and all other items of personal property Mortgagor owns now or in
the future and that are used or useful in the construction, ownership,
operation, management, or maintenance of the Property (all of which shall also
be included in the term Property).  The
term “personal property” specifically excludes that property described as “household
goods” secured in connection with a “consumer” loan as those terms are defined
in applicable federal regulations governing unfair and deceptive credit
practices.

24.                               APPLICABLE
LAW.  This
Security Instrument is governed by the laws of Illinois, the United States of
America, and to the extent required, by the laws of the jurisdiction where the
Property is located, except to the extent such state laws are preempted by
federal law.

25.                               JOINT AND
INDIVIDUAL LIABILITY AND SUCCESSORS.  Each Mortgagor’s obligations under this
Security Instrument are independent of the obligations of any other Mortgagor.  Lender may sue each Mortgagor individually or
together with any other Mortgagor. 
Lender may release any part of the Property and Mortgagor will still be
obligated under this Security Instrument for the remaining Property.  If this Security Instrument secures a
guaranty between Lender and Mortgagor, Mortgagor agrees to waive any rights
that may prevent Lender from bringing any action or claim against Mortgagor or
any party indebted under the obligation. 
These rights may include, but are not limited to, any anti-deficiency or
one-action laws.  Mortgagor agrees that
Lender and any party to this Security Instrument may extend, modify or make any
change in the terms of this Security Instrument or any evidence of debt without
Mortgagor’s consent.  Such a change will
not release Mortgagor from the terms of this Security Instrument.  The duties and benefits of this Security
Instrument will bind and benefit the successors and assigns of Lender and
Mortgagor.

26.                               AMENDMENT,
INTEGRATION AND SEVERABILITY.  This Security Instrument may not be amended
or modified by oral agreement.  No
amendment or modification of this Security Instrument is effective unless made
in writing and executed by Mortgagor and Lender.  This Security Instrument and any other
documents relating to the Secured Debts are the complete and final expression
of the agreement.  If any provision of
this Security Instrument is 

 11
 

unenforceable, then the unenforceable provision will
be severed and the remaining provisions will still be enforceable.

27.                               INTERPRETATION.  Whenever used, the singular includes the
plural and the plural includes the singular. 
The section headings are for convenience only and are not to be used to
interpret or define the terms of this Security Instrument.

28.                               NOTICE,
FINANCIAL REPORTS, ADDITIONAL DOCUMENTS AND RECORDING TAXES.  Unless otherwise required by law, any notice
will be given by delivering it or mailing it by first class mail to the
appropriate party’s address listed in the DATE AND PARTIES section, or to any
other address designated in writing. 
Notice to one Mortgagor will be deemed to be notice to all
Mortgagors.  Mortgagor will inform Lender
in writing of any change in Mortgagor’s name, address or other application
information.  Mortgagor will provide
Lender any financial statements or information Lender requests.  All financial statements and information
Mortgagor gives Lender will be correct and complete.  Mortgagor agrees to pay all expenses, charges
and taxes in connection with the preparation and recording of this Security
Instrument.  Mortgagor agrees to sign,
deliver, and file any additional documents or certifications that Lender may
consider necessary to perfect, continue, and preserve Mortgagor’s obligations
under this Security Instrument and to confirm Lender’s lien status on any
Property, and Mortgagor agrees to pay all expenses, charges and taxes in
connection with the preparation and recording thereof.  Time is of the essence.

SIGNATURES.  By signing, Mortgagor agrees to the terms and
covenants contained in this Security Instrument.  Mortgagor also acknowledges receipt of a copy
of this Security Instrument.

 

	
  MORTGAGOR:  

  
	
   

  
	
   

  	
  NOVA
  BIOFUELS SENECA LLC,

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Dallas Neil  

  	
   

  
	
   

  	
    Dallas
  Neil, Manager

  
				

 

 

ACKNOWLEDGMENT.

(Business or Entity)

                             
OF                              ,
                             
OF
                             
ss.

This instrument was acknowledged before me this
                     
day of                              ,
                
by Dallas Neil - Manager of NOVA BIOFUELS SENECA LLC a Limited Liability
Company on behalf of the Limited Liability Company.

My commission expires:

 12
 

 

	
  

  	
   

  	
   

  
	
   

  	
  (Notary
  Public)

  

 

 13Exhibit
10.10

GUARANTY

(Continuing Debt - Limited)

DATE AND PARTIES.  The date of this Guaranty is January 9,
2007.  The parties and their addresses
are:

LENDER:

CENTRUE BANK

201 E. Main St.

Streator, Illinois 61364

Telephone:  (815) 673-3333

BORROWER:

NOVA BIOFUELS SENECA LLC

a Delaware Limited Liability Company

2777 ALLEN PARKWAY SUITE 860

HOUSTON, Texas 77019

GUARANTOR:

NOVA HOLDING SENECA LLC

a Delaware Limited Liability Company

111 N HIGGINS AVE SUITE 400

MISSOULA, Montana 59802

1.                                      DEFINITIONS.  As used in this Guaranty, the terms have the
following meanings:

A.                                    Pronouns.  The pronouns “I”, “me” and “my” refer to all
persons or entities signing this Guaranty, individually and together.  “You” and “your” refer to the Lender.

B.                                    Note.  “Note” refers to the document that evidences
the Borrower’s indebtedness, and any extensions, renewals, modifications and
substitutions of the Note.

C.                                    Property.  “Property” means any property, real, personal
or intangible, that secures performance of the obligations of the Note, Debt,
or this Guaranty.

2.                                      SPECIFIC
AND FUTURE DEBT GUARANTY.  For good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and to induce you, at your option, to make loans or engage in any
other transactions with the Borrower from time to time, I absolutely and
unconditionally agree to all terms of and guaranty to you the payment and
performance of each and every Debt, of every type, purpose and description that
the Borrower either individually, among all or a portion of themselves, or with
others, may now or at any time in the future owe you, including, but not
limited to the following described Debt(s) including without limitation, all
principal, accrued interest, attorneys’ fees and collection costs, when 

 1
 

allowed by law, that may become due from the Borrower
to you in collecting and enforcing the Debt and all other agreements with
respect to the Borrower.

A promissory note or other agreement, No. 811006538,
dated January 9, 2007, from NOVA BIOFUELS SENECA LLC (Borrower) to you, in the
amount of $2,520,000.00.

In addition, Debt refers to debts, liabilities, and
obligations of the Borrower (including, but not limited to, amounts agreed to
be paid under the terms of any notes or agreements securing the payment of any
debt, loan, liability or obligation, overdrafts, letters of credit, guaranties,
advances for taxes, insurance, repairs and storage, and all extensions,
renewals, refinancings and modifications of these debts) whether now existing
or created or incurred in the future, due or to become due, or absolute or
contingent, including obligations and duties arising from the terms of all
documents prepared or submitted for the transaction such as applications,
security agreements, disclosures, and the Note.

My liability will not exceed $210,000.00 of the
principal amount outstanding at default, plus accrued interest, attorneys’ fees
and collection costs, when allowed by law, and all other costs, fees and
expenses agreed to be paid under all agreements evidencing the Debt and
securing the payment of the Debt.  You
may, without notice, apply this Guaranty to such Debt of the Borrower as you
may select from time to time.

3.                                      EXTENSIONS.  I consent to all renewals, extensions,
modifications and substitutions of the Debt which may be made by you upon such
terms and conditions as you may see fit from time to time without further
notice to me and without limitation as to the number of renewals, extensions,
modifications or substitutions.

A.                                    Future
Advances.  I waive notice of and
consent to any and all future advances made to the Borrower by you.

4.                                      UNCONDITIONAL
LIABILITY.  I am unconditionally
liable under this Guaranty, regardless of whether or not you pursue any of your
remedies against the Borrower, against any other maker, surety, guarantor or
endorser of the Debt or against any Property. 
You may sue me alone, or anyone else who is obligated on this Guaranty,
or any number of us together, to collect the Debt.  My liability is not conditioned on the
signing of this Guaranty by any other person and further is not subject to any
condition not expressly set forth in this Guaranty or any instrument executed
in connection with the Debt.  My
obligation to pay according to the terms of this Guaranty shall not be affected
by the illegality, invalidity or unenforceability of any notes or agreements
evidencing the Debt, the violation of any applicable usury laws, forgery, or
any other circumstances which make the indebtedness unenforceable against the
Borrower.  I will remain obligated to pay
on this Guaranty even if any other person who is obligated to pay the Debt,
including the Borrower, has such obligation discharged in bankruptcy,
foreclosure, or otherwise discharged by law.

5.                                      BANKRUPTCY.  If a bankruptcy petition should at any time
be filed by or against the Borrower, the maturity of the Debt, so far as my
liability is concerned, shall be accelerated and the Debt shall be immediately
payable by me.  I acknowledge and agree
that this Guaranty, and the Debt secured hereby, will remain in full force and
effect at all times, notwithstanding any 

 2
 

action or undertakings by, or against, you or against
any Property, in connection with any obligation in any proceeding in the United
States Bankruptcy Courts.  Such action or
undertaking includes, without limitation, valuation of Property, election of
remedies or imposition of secured or unsecured claim status upon claims by you,
pursuant to the United States Bankruptcy Code, as amended.  In the event that any payment of principal or
interest received and paid by any other guarantor, borrower, surety, endorser
or co-maker is deemed, by final order of a court of competent jurisdiction, to
have been a voidable preference under the bankruptcy or insolvency laws of the
United States or otherwise, then my obligation will remain as an obligation to
you and will not be considered as having been extinguished.

6.                                      REVOCATION.  I agree that this is an absolute and
unconditional Guaranty.  I agree that
this Guaranty will remain binding on me, whether or not there are any Debts
outstanding, until you have actually received written notice of my revocation
or written notice of my death or incompetence. 
Notice of revocation or notice of my death or incompetence will not
affect my obligations under this Guaranty with respect to any Debts incurred by
or for which you have made a commitment to Borrower before you actually receive
such notice, and all renewals, extensions, refinancings, and modifications of
such Debts.  I agree that if any other
person signing this Guaranty provides a notice of revocation to you, I will
still be obligated under this Guaranty until I provide such a notice of
revocation to you.  If any other person
signing this Guaranty dies or is declared incompetent, such fact will not
affect my obligations under this Guaranty.

7.                                      PROPERTY.  I agree that any Property may be assigned,
exchanged, released in whole or in part or substituted without notice to me and
without defeating, discharging or diminishing my liability.  My obligation is absolute and your failure to
perfect any security interest or any act or omission by you which impairs the
Property will not relieve me or my liability under this Guaranty.  You are under no duty to preserve or protect
any Property until you are in actual or constructive possession.  For purposes of this paragraph, you will only
be in “actual” possession when you have physical, immediate and exclusive
control over the Property and have accepted such control in writing.  Further, you will only be deemed to be in “constructive”
possession when you have both the power and intent to exercise control over the
Property.

8.                                      DEFAULT.  I will be in default if any of the following
occur:

A.                                    Payments.  I fail to make a payment in full when due.

B.                                    Insolvency
or Bankruptcy.  The death,
dissolution or insolvency of, appointment of a receiver by or on behalf of,
application of any debtor relief law, the assignment for the benefit of
creditors by or on behalf of, the voluntary or involuntary termination of
existence by, or the commencement of any proceeding under any present or future
federal or state insolvency, bankruptcy, reorganization, composition or debtor
relief law by or against me, Borrower, or any co-signer, endorser, surety or
guarantor of this Guaranty or any Debt.

C.                                    Business
Termination.  I merge, dissolve,
reorganize, end my business or existence, or a partner or majority owner dies
or is declared legally incompetent.

 3
 

D.                                    Failure
to Perform.  I fail to perform any
condition or to keep any promise or covenant of this Guaranty.

E.                                      Other
Documents.  A default occurs under
the terms of any other document relating to the Debt.

F.                                      Other
Agreements.  I am in default on any
other debt or agreement I have with you.

G.                                    Misrepresentation.  I make any verbal or written statement or provide
any financial information that is untrue, inaccurate, or conceals a material
fact at the time it is made or provided.

H.                                    Judgment.  I fail to satisfy or appeal any judgment
against me.

I.                                         Forfeiture.  The Property is used in a manner or for a
purpose that threatens confiscation by a legal authority.

J.                                      Name
Change.  I change my name or assume
an additional name without notifying you before making such a change.

K.                                    Property
Transfer.  I transfer all or a
substantial part of my money or property.

L.                                     Property
Value.  You determine in good faith
that the value of the Property has declined or is impaired.

M.                                  Material
Change.  Without first notifying you,
there is a material change in my business, including ownership, management, and
financial conditions.

N.                                    Insecurity.  You determine in good faith that a material
adverse change has occurred in my financial condition from the conditions set
forth in my most recent financial statement before the date of this Guaranty or
that the prospect for payment or performance of the Debt is impaired for any
reason.

9.                                      WAIVERS
AND CONSENT.  To the extent not
prohibited by law, I waive protest, presentment for payment, demand, notice of
acceleration, notice of intent to accelerate and notice of dishonor.

A.                                    Additional
Waivers.  In addition, to the extent
permitted by law, I consent to certain actions you may take, and generally
waive defenses that may be available based on these actions or based on the
status of a party to the Debt or this Guaranty.

(1)                                 You
may renew or extend payments on the Debt, regardless of the number of such
renewals or extensions.

(2)                                 You
may release any Borrower, endorser, guarantor, surety, accommodation maker or
any other co-signer.

 4
 

(3)                                 You
may release, substitute or impair any Property.

(4)                                 You,
or any institution participating in the Debt, may invoke your right of set-off.

(5)                                 You
may enter into any sales, repurchases or participations of the Debt to any
person in any amounts and I waive notice of such sales, repurchases or
participations.

(6)                                 I
agree that the Borrower is authorized to modify the terms of the Debt or any
instrument securing, guarantying or relating to the Debt.

(7)                                 You
may undertake a valuation of any Property in connection with any proceedings
under the United States Bankruptcy Code concerning the Borrower or me,
regardless of any such valuation, or actual amounts received by you arising
from the sale of such Property.

(8)                                 I
agree to consent to any waiver granted the Borrower, and agree that any delay
or lack of diligence in the enforcement of the Debt, or any failure to file a
claim or otherwise protect any of the Debt, in no way affects or impairs my
liability.

(9)                                 I
agree to waive reliance on any anti-deficiency statutes, through subrogation or
otherwise, and such statutes in no way affect or impair my liability.  In addition, until the obligations of the
Borrower to Lender have been paid in full, I waive any right of subrogation,
contribution, reimbursement, indemnification, exoneration, and any other right
I may have to enforce any remedy which you now have or in the future may have
against the Borrower or another guarantor or as to any Property.

Any Guarantor who is an “insider,”
as contemplated by the United States Bankruptcy Code, 11 U.S.C. 101, as
amended, makes these waivers permanently. 
(An insider includes, among others, a director, officer, partner, or
other person in control of the Borrower, a person or an entity that is a
co-partner with the Borrower, an entity in which the Borrower is a general
partner, director, officer or other person in control or a close relative of
any of these other persons.)  Any
Guarantor who is not an insider makes these waivers until all Debt is fully
repaid.

B.                                    No
Waiver By Lender.  Your course of
dealing, or your forbearance from, or delay in, the exercise of any of your
rights, remedies, privileges or right to insist upon my strict performance of
any provisions contained in the Debt instruments, shall not be construed as a
waiver by you, unless any such waiver is in writing and is signed by you.

C.                                    Waiver
of Claims.  I waive all claims for
loss or damage caused by your acts or omissions where you acted reasonably and
in good faith.

10.                               REMEDIES.  After the Borrower or I default, you may at
your option do any one or more of the following.

 5
 

A.                                    Acceleration.  You may make all or any part of the amount
owing by the terms of this Guaranty immediately due.

B.                                    Sources.  You may use any and all remedies you have
under state or federal law or in any documents relating to the Debt.

C.                                    Insurance
Benefits.  You may make a claim for
any and all insurance benefits or refunds that may be available on default.

D.                                    Payments
Made on the Borrower’s Behalf. 
Amounts advanced on the Borrower’s behalf will be immediately due and
may be added to the balance owing under the Debt.

E.                                      Set-Off.  You may use the right of set-off.  This means you may set-off any amount due and
payable under the terms of this Guaranty against any right I have to receive
money from you.

My right to receive money
from you includes any deposit or share account balance I have with you; any
money owed to me on an item presented to you or in your possession for
collection or exchange; and any repurchase agreement or other non-deposit
obligation.  “Any amount due and payable
under the terms of this Guaranty” means the total amount to which you are
entitled to demand payment under the terms of this Guaranty at the time you
set-off.

Subject to any other
written contract, if my right to receive money from you is also owned by
someone who has not agreed to pay the Debt, your right of set-off will apply to
my interest in the obligation and to any other amounts I could withdraw on my
sole request or endorsement.

Your right of set-off
does not apply to an account or other obligation where my rights arise only in
a representative capacity.  It also does
not apply to any Individual Retirement Account or other tax-deferred retirement
account.

You will not be liable
for the dishonor of any check when the dishonor occurs because you set-off
against any of my accounts.  I agree to
hold you harmless from any such claims arising as a result of your exercise of
your right of set-off.

F.                                      Waiver.  Except as otherwise required by law, by
choosing any one or more of these remedies you do not give up your right to use
any other remedy.  You do not waive a
default if you choose not to use a remedy. 
By electing not to use any remedy, you do not waive your right to later
consider the event a default and to use any remedies if the default continues
or occurs again.

11.                               COLLECTION
EXPENSES AND ATTORNEYS’ FEES.  On or
after Default, to the extent permitted by law, I agree to pay all expenses of
collection, enforcement or protection of your rights and remedies under this
Guaranty or any other document relating to the Debt.  To the extent permitted by law, expenses
include, but are not limited to, reasonable attorneys’ fees, court costs and
other legal expenses.  All fees and
expenses will be secured by the Property I have 

 6
 

granted to you, if any.  In addition, to the extent permitted by the
United States Bankruptcy Code, I agree to pay the reasonable attorneys’ fees
incurred by you to protect your rights and interests in connection with any
bankruptcy proceedings initiated by or against me.

12.                               WARRANTIES
AND REPRESENTATIONS.  I make to you
the following warranties and representations which will continue as long as
this Guaranty is in effect:

A.                                    Power.  I am duly organized, and validly existing and
in good standing in all jurisdictions in which I operate.  I have the power and authority to enter into
this transaction and to carry on my business or activity as it is now being
conducted and, as applicable, am qualified to do so in each jurisdiction in
which I operate.

B.                                    Authority.  The execution, delivery and performance of
this Guaranty and the obligation evidenced by this Guaranty are within my
powers, have been duly authorized, have received all necessary governmental
approval, will not violate any provision of law, or order of court or
governmental agency, and will not violate any agreement to which I am a party
or to which I am or any of my Property is subject.

C.                                    Name
and Place of Business.  Other than
previously disclosed in writing to you I have not changed my name or principal
place of business within the last 10 years and have not used any other trade or
fictitious name.  Without your prior
written consent, I do not and will not use any other name and will preserve my
existing name, trade names and franchises.

In addition, I represent and warrant that this
Guaranty was entered into at the request of the Borrower, and that I am
satisfied regarding the Borrower’s financial condition and existing
indebtedness, authority to borrow and the use and intended use of all Debt
proceeds.  I further represent and
warrant that I have not relied on any representations or omissions from you or
any information provided by you respecting the Borrower, the Borrower’s
financial condition and existing indebtedness, the Borrower’s authority to
borrow or the Borrower’s use and intended use of all Debt proceeds.

13.                               RELIANCE.  I acknowledge that you are relying on this
Guaranty in extending credit to the Borrower, and I have signed this Guaranty
to induce you to extend such credit.  I
represent and warrant to you that I have a direct and substantial economic
interest in the Borrower and expect to derive substantial benefits from any
loans and financial accommodations resulting in the creation of indebtedness
guarantied hereby, and that this Guaranty is given for a business purpose.  I agree to rely exclusively on the right to
revoke this Guaranty prospectively as to future transactions in the manner as
previously described in this Guaranty if at any time, in my opinion or the
opinion of the directors or officers of my business, the benefits then being
received by me in connection with this Guaranty are not sufficient to warrant
the continuance of this Guaranty.  You
may rely conclusively on a continuing warranty that I continue to be benefited
by this Guaranty and you will have no duty to inquire into or confirm the
receipt of any such benefits, and this Guaranty will be effective and
enforceable by you without regard to the receipt, nature or value of any such
benefits.

 7
 

14.                               APPLICABLE
LAW.  This Guaranty is governed by
the laws of Illinois, the United States of America, and to the extent required,
by the laws of the jurisdiction where the Property is located, except to the
extent such state laws are preempted by federal law.

15.                               AMENDMENT,
INTEGRATION AND SEVERABILITY.  This
Guaranty may not be amended or modified by oral agreement.  No amendment or modification of this Guaranty
is effective unless made in writing and executed by you and me.  This Guaranty is the complete and final expression
of the agreement.  If any provision of
this Guaranty is unenforceable, then the unenforceable provision will be
severed and the remaining provisions will still be enforceable.

16.                               ASSIGNMENT.  If you assign any of the Debts, you may
assign all or any part of this Guaranty without notice to me or my consent, and
this Guaranty will inure to the benefit of your assignee to the extent of such
assignment.  You will continue to have
the unimpaired right to enforce this Guaranty as to any of the Debts that are
not assigned.  This Guaranty shall inure
to the benefit of and be enforceable by you and your successors and assigns and
any other person to whom you may grant an interest in the Debts and shall be
binding upon and enforceable against me and my personal representatives,
successors, heirs and assigns.

17.                               INTERPRETATION.  Whenever used, the singular includes the
plural and the plural includes the singular. 
The section headings are for convenience only and are not to be used to
interpret or define the terms of this Guaranty.

18.                               NOTICE,
FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. 
Unless otherwise required by law, any notice will be given by delivering
it or mailing it by first class mail to the appropriate party’s address listed
in the DATE AND PARTIES section, or to any other address designated in
writing.  Notice to one Guarantor will be
deemed to be notice to all Guarantors.  I
will inform you in writing of any change in my name, address or other
application information.  I will provide
you any financial statement or information you request.  All financial statements and information I
give you will be correct and complete.  I
agree to sign, deliver, and file any additional documents or certifications
that you may consider necessary to perfect, continue, and preserve my
obligations under this Guaranty and to confirm your lien status on any
Property.  Time is of the essence.

19.                               CREDIT
INFORMATION.  I agree that from time
to time you may obtain credit information about me from others, including other
lenders and credit reporting agencies, and report to others (such as a credit reporting
agency) your credit experience with me. 
I agree that you will not be liable for any claim arising from the use
of information provided to you by others or for providing such information to
others.

20.                               ADDITIONAL
TERMS.  FINANCIAL STATEMENTS.  I will prepare and maintain my financial
records using consistently applied generally accepted accounting principles
then in effect.  I will provide you with
financial information in a form that you accept and under the following terms.

A.                                    Certification.  I represent and warrant that any financial
statements that I provide you fairly represents my financial condition for the
stated periods, is current, complete, true and accurate in all material
respects, includes all of my direct or contingent liabilities 

 8
 

and there has been no
material adverse change in my financial condition, operations or business since
the date the financial information was prepared.

B.                                    Frequency.  Annually, I will provide to you my financial
statements, tax returns, annual internal audit reports or those prepared by
independent accountants as soon as available or at least within 90 days after
the close of each of my fiscal years. 
Any annual financial statements that I provide you will be prepared statements.

C.                                    Interim
Financial Reports.  Each fiscal
quarter, I will provide to you my financial statements, internal audit reports
or those prepared by independent accountants, tax reports, statements of cash
flow, budgets and forecasts, certificates and schedules of Property as soon as
available or at least within 30 days after the close of this business
period.  Any interim financial statements
that I provide you will be prepared statements.

D.                                    Minimum
Tangible Net Worth.  I will maintain
at all times a tangible net worth, determined under consistently applied
generally accepted accounting principles, of 250,000.00 or more.  Tangible net worth is the amount that total
assets exceed total liabilities.  For
determining tangible net worth, total assets will exclude all intangible
assets, including without limitation goodwill, patents, trademarks, trade
names, copyrights, and franchises, and will also exclude all Accounts
Receivable, owed by my Insiders, that do not provide for the repayment
schedule.

GUARANTOR’S LIABILITY UNAFFECTED.

I hereby agree and acknowledge that in one or more
instances and from time to time before, during or after the occurrence of a
Default or any notice of termination hereof, with or without notice to or
further assent from me and without affecting or in any way impairing my
liability hereunder, you may (i) renew, compromise, extend, accelerate or
otherwise change the time of payment or the terms of any of the Debt or any
part thereof, including, without limitation, increasing or decreasing the rate
of interest thereon; (ii) modify, supplement, extend, or amend in any manner,
or terminate, any contract or agreement to which any Borrower or any other
guarantor or person is a party; (iii) sell, exchange, surrender, compromise or
release any Property at any time held by or available to you as security for
all or any part of the Debt or for any obligation of any other guarantor or
person; (iv) change, alter, renew, extend, continue, surrender, compromise,
waive, terminate or release all or any part of the Debt; (v) waive any Default;
(vi) refrain from setting off and/or release, in whole or in part, any deposit
account or credit on your books in favor of any Borrower or any other guarantor
or person; (vii) extend further credit in any manner whatsoever to any
Borrower; and (viii) generally deal with any Borrower or any other guarantor or
person or any Property as you may, in your sole and absolute discretion,
determine.  I AGREE THAT NOTWITHSTANDING
ANY OF THE FOREGOING ACTIONS (OR FAILURE TO ACT) ON YOUR PART, I SHALL REMAIN
BOUND UNDER THIS GUARANTY AND THAT MY OBLIGATIONS HEREUNDER SHALL NOT BE
AFFECTED BY THE RECOVERY OF ANY JUDGMENT AGAINST ANY BORROWER OR ANY OTHER
GUARANTOR OR PERSON OR BY ANY ACTION TO ENFORCE SUCH JUDGMENT OR BY ANY OTHER
FACTS OR CIRCUMSTANCES WHICH MIGHT OTHERWISE CONSTITUTE A LEGAL OR EQUITABLE
DISCHARGE OR DEFENSE OF A GUARANTOR OR SURETY. 
I AGREE THAT THIS GUARANTY SHALL REMAIN IN 

 9
 

FULL FORCE AND EFFECT AND WILL NOT BE DISCHARGED
EXCEPT BY THE COMPLETE PAYMENT AND PERFORMANCE OF ALL DEBT IN ACCORDANCE WITH
THE RESPECTIVE TERMS THEREOF AND BY THE COMPLETE PAYMENT AND PERFORMANCE OF MY
OBLIGATIONS AND UNDERTAKINGS CONTAINED HEREIN. 
I FURTHER AGREE THAT THE INVALIDITY, IRREGULARITY OR UNENFORCEABILITY OF
ALL OR ANY PART OF THE DEBT OR ANY PROPERTY HELD AS SECURITY THEREFOR SHALL NOT
AFFECT, IMPAIR OR BE A DEFENSE TO THIS GUARANTY OR AFFECT IN ANY MANNER MY
LIABILITY HEREUNDER.

NO DUTY OF DISCLOSURE.

I am presently informed as to the financial condition
of each Borrower and as to all other facts and circumstances which bear on the
risk that any Borrower or any other guarantor or person liable for payment of
the Debt might not pay the Debt.  I
promise that I will continue to keep myself informed as to the financial condition
of each Borrower, the financial condition of other guarantors, if any, and all
other circumstances which bear on the risk of nonpayment.  I waive any right I may have to require you
to disclose any information which you may now have or hereafter acquire
concerning the financial condition of any Borrower, the financial condition of
other guarantors and/or circumstances bearing upon the risk of nonpayment,
including, but not limited to, your release of any other guarantor or any other
guarantor’s revocation of, or disavowal of liability under, this or any other
guaranty of the Debt or any part thereof.

GUARANTY OF PAYMENT - WAIVER.

I expressly agree and acknowledge that this is a
guaranty of payment and not of collection. 
I expressly waive any right I may have (i) to require that you bring an
action against any Borrower or any other guarantor or person; (ii) to require
that you realize upon, dispose of, or set off any Property or any deposit
account or any credit on your books in favor of any Borrower or any other
guarantor or person; or (iii) to require that you exercise any other right or
remedy which may be available to you.  I
further expressly waive (iv) notice of the acceptance of this Guaranty and of
extensions of credit or any other financial accommodations you may extend to
the Borrower; (v) presentment and demand for payment of any of the Debt; (vi)
protest and notice of dishonor or default to me or any other guarantor or
person with respect to any of the Debt; (vii) any demand for payment under this
Guaranty; (viii) until all Debt is paid in full completely performed, any right
of subrogation to any of your rights against any Borrower or other guarantor or
person or any Property securing the Debt and any right of reimbursement,
indemnity or other recourse against any Borrower or other guarantor or person;
and (ix) any defenses available to a guarantor or surety under the laws of the
State of Illinois.

INFORMATION TO BE PROVIDED.

I agree:  (i)
promptly upon the filing thereof, to provide you with a complete “as filed”
copy (including all schedules and attachments) of my individual U.S. income tax
return; (ii) on or before March 1st of each year, to provide you with a
detailed balance sheet identifying all of my assets, liabilities and contingent
liabilities; (iii) from time to time, to promptly furnish you with such
information concerning my financial condition as you may reasonably request;
and (iv) to 

 10
 

promptly notify you of any condition or event which
constitutes, or would constitute, with the passage of time or the giving of
notice or both, a Default.

EVIDENCE OF BORROWER’S INDEBTEDNESS.

I agree that the amount of any Debt owed to you by any
Borrower as reflected from time to time on your books and records (in whatever
form they may be kept or maintained) shall be admissible in any action or
proceeding against me under this Guaranty and shall be conclusive evidence of
such amount owed.

LEGALLY ENFORCEABLE.

I hereby represent and warrant that all acts,
conditions and things required to be done and performed and to have happened
prior to the creation and issuance of this Guaranty, and to constitute the same
as my valid and legally binding obligation in accordance with its terms, have
been done and performed and have happened in due and strict compliance with all
applicable laws.  [If the Guarantor is a
corporation or limited liability company, then and in such event, the Guarantor
expressly represents and warrants to the Lender that the execution and delivery
of this Guaranty have been duly authorized by resolutions heretofore duly adopted
by its board of directors, managers or other governing body in accordance with
all applicable bylaws, shareholder agreements or operating agreements, that
said resolutions have not been amended or rescinded, are in full force and
effect, and that the officers or managers of the Guarantor executing and
delivering this Guaranty, for and on behalf of the Guarantor, are duly
authorized and empowered to so act.]  I
understand and acknowledge that you are expressly relying on the aforesaid
representations and warranties in accepting this Guaranty and in extending
credit to the Borrower.

GOVERNING LAW - JURY WAIVER - JURISDICTION -
VENUE.

I agree that this Guaranty is and shall be deemed to
be a contract entered into and made pursuant to the laws of the State of
Illinois and shall in all respects be governed, construed, applied and enforced
in accordance with the laws of said state. 
I HEREBY IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY ACTION OR
PROCEEDING BROUGHT IN CONNECTION WITH THIS GUARANTY, THE NOTE OR ANY OF THE
LOAN DOCUMENTS OR ARISING OUT OF OR IN ANY WAY RELATED TO ANY DISPUTE OR
CONTROVERSY IN CONNECTION WITH THIS GUARANTY, THE NOTE OR ANY OF THE LOAN
DOCUMENTS.  I CONSENT AND SUBMIT TO THE
JURISDICTION OF THE CIRCUIT COURT OF LASALLE COUNTY ILLINOIS AND AGREE THAT ANY
ACTION OR PROCEEDING IN CONNECTION WITH THIS GUARANTY, THE NOTE OR ANY OF THE
LOAN DOCUMENTS IN CONNECTION WITH ANY DISPUTE OR CONTROVERSY ARISING THEREFROM
SHALL BE BROUGHT IN SUCH COURT AND PROPERLY VENDED THEREIN.

SEVERABILITY.

Wherever possible, each provision of this Guaranty
shall be interpreted in such manner as to be effective and valid under
applicable law.  Should any portion of
this Guaranty be declared invalid for any reason in any jurisdiction, such
declaration shall have no effect upon the 

 11
 

remaining portions of this Guaranty; furthermore, the
entirety of this Guaranty shall continue in full force and effect in all other
jurisdictions and said remaining portions of this Guaranty shall continue in
full force and effect in the subject jurisdiction as if this Guaranty had been
executed with the invalid portions thereof deleted.

SECURITY INTEREST IN DEPOSIT ACCOUNTS.

To secure (i) payment of the Debt and any other loans,
indebtedness or obligations that any Borrower or I may now or at any time in
the future owe you and (ii) the performance of my promises and undertakings
hereunder, I grant to you a security interest in all of my deposit accounts.

ADDITIONAL TERMS RELATED TO CONFESSION OF
JUDGMENT.

I hereby waive and release any and all claims or
causes of action which I might have against any attorney acting under the terms
of the authority which I have granted herein arising out of in connection with
the confession of any judgment hereunder.

21.                               SIGNATURES.  By signing, I agree to the terms contained in
this Guaranty.  I also acknowledge
receipt of a copy of this Guaranty.

 

	
  GUARANTOR:  

  
	
   

  
	
   

  	
  NOVA HOLDING SENECA LLC 

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Dallas Neil  

  	
   

  
	
   

  	
  Dallas Neil,
  Manager

  
						

 

ACKNOWLEDGMENT.

(Business or Entity)

                               
OF                              ,
                                
OF
                            
ss.

This instrument
was acknowledged before me this
                 
day of
                      ,
                
by Dallas Neil - Manager of NOVA HOLDING SENECA LLC a Limited Liability Company
on

behalf of the Limited Liability Company.

My commission expires:

 

	
  

  	
   

  	
   

  
	
   

  	
  (Notary Public)

  

 

 12

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