Document:

Unassociated Document

    PURCHASE
      AGREEMENT

    

    

    THIS
      AGREEMENT,
      dated
      for reference the 24th day of May, 2007, is made

    

    
      	BETWEEN:	
              COVENTRY
                CAPITAL LLC,
                having an address of Suite 600, 1201 Orange Street, Wilmington, Delaware,
                USA, 19899-0511

            

    

    

    (hereinafter
      referred to as the “Buyer”)

    

    
      	AND:	
              RADIAL
                ENERGY INC.,
                a
                company incorporated under the laws of the State of Nevada, having
                an
                office at 1200 Smith Street, Suite 1600, Two Allen Center Building,
                Houston, Texas, USA, 77002

            

    

    

    (hereinafter
      referred to as the “Seller”)

    

    WHEREAS
      the
      Seller desires to sell to the Buyer and the Buyer desires to purchase from
      the
      Seller Fifty Percent (50%) of the Seller’s right, title and interest in and to
      its share of the Net Production Revenue generated from the Peruvian Huaya
      Anticline Project, Block 100, oil prospect located in Loreto Department, Peru,
      Ucayali Basin (hereinafter referred to as the “Assets”), subject to the terms
      and conditions set forth in this Purchase and Sale Agreement (the “Agreement”).

    

    NOW
      THEREFORE,
      in
      consideration of the mutual promises contained herein, the benefits to be
      derived by each party hereunder, as well as other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      Buyer and Seller agree as follows:

    

    
      
        
          	1.	
                  Purchase
                    of Assets 

                

        

      

    

    

    The
      Seller offers and agrees to sell, and the Buyer offers and agrees to purchase
      all of Seller’s right, title and interest in and to Fifty Percent (50%) of the
      Seller’s right, title and interest in and to its share of the Net Production
      Revenue generated from the Peruvian Huaya Anticline Project, Block 100, oil
      prospect located in Loreto Department, Peru, Ucayali Basin, being Ten point
      Thirty-Five Percent (10.35%) of Total Production Revenue.

    

    The
      Purchaser shall have access to original, or, if no originals are available,
      clean and legible copies of information and data respecting the Assets in the
      Seller's possession, including, without limitation, Agreements, production
      records, geological and geophysical data and reports and all other information
      relating directly to the ownership of or production revenue of the Assets but
      exclusive of any such records, data or information where provision of same
      is
      prohibited by third party agreements or applicable law.

    

    
      
        	2.	
                Purchase
                  Price 

              

      

    

    

    As
      consideration for the sale of the Assets, the Buyer shall pay or deliver to
      the
      Seller upon execution of this Agreement the sum of One Hundred Thousand Dollars
      ($100,000) in US funds (the “Purchase Price”). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	3.	
                Mandatory
                  Repurchase of
                  Assets

              

      

    

    

    The
      Purchaser shall grant to the Seller the option to repurchase the Assets at
      any
      time until May 2, 2008 on the following terms:

    

    
      
        	(a)	
                The
                  Seller can repurchase the Assets on or before November 1, 2007
                  for the
                  purchase price of Four Hundred Thousand Dollars ($400,000) in US
                  funds;
                  or

              

      

    

    

    
      
        	(b)	
                The
                  Seller can repurchase the Assets from November 2, 2007 to March
                  1, 2008
                  for the purchase price of Six Hundred Thousand Dollars ($600,000)
                  in US
                  funds; or

              

      

    

    

    
      
        	(c)	
                The
                  Seller can repurchase the Assets from March 2, 2008 to May 1, 2008
                  for the
                  purchase price of Eight Hundred Thousand Dollars ($800,000) in
                  US
                  funds.

              

      

    

    

    In
      the
      event the Seller is unable to repurchase the Assets by May 1, 2008, the Seller
      will be required to convert the final purchase price of Eight Hundred Thousand
      Dollars ($800,000) into a loan due and payable to the Buyer.

    

    In
      any
      event, the Seller will be required to meet it’s financial obligations to Coach
      Capital LLC prior to the repurchase of the Assets.

    

    
      
        	4.	
                Monthly
                  Payments

              

      

    

    

    The
      Seller agrees to pay to the Buyer a monthly fee of Fifty Thousand Dollars
      ($50,000) commencing September 1, 2007 and payable on the first day of each
      and
      every month prior to the repurchase of Assets. The funds are to be generated
      from the Seller’s share of production revenue derived from the Assets and, in
      the event the Seller is unable to pay this monthly fee, the fee, or any amount
      thereof remaining outstanding from time to time, will accrue in the form of
      a
      loan payable to the Buyer.

    

    Upon
      the
      repurchase of Assets by the Seller the payment of the monthly fees shall cease.
      Should the Seller be unable to complete the repurchase of Assets by May 1,
      2008
      and the purchase price converts into a loan, the monthly fee of Fifty Thousand
      Dollars ($50,000) shall continue to be payable and accrue until such time as
      the
      full amount of the repurchase loan and any amount of accrued monthly payments
      have been paid in full.

    

    
      
        	4.	
                Seller's
                  Representations and Warranties

              

      

    

    

    The
      Seller represents and warrants as follows. 

    

    
      
        	(a)	
                Legal
                  Status and Authority:

              

      

    

    

    (i)    The
      Seller
      is a corporation, validly organized and existing, and in good standing, under
      the laws of the State of Nevada. The Seller has the power and authority to
      own
      its property and to carry on its business as now conducted and to enter into
      and
      to carry out the terms of this Agreement.

    

    (ii)   The
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated hereby have been duly authorized by all necessary
      corporate action and Seller is not subject to any articles or by-laws, lien
      or
      encumbrance of any kind, agreement, instrument, order or decree of any court
      or
      governmental body (other than any governmental approval required) which would
      prevent consummation of the transactions contemplated by this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iii)   The
      consummation of this transaction will not violate or cause a default under
      (i)
      any provision of the Seller's governing documents; (ii) any provision of any
      material contract or agreement or of any bank loan, indenture or credit
      agreement to which the Seller is a party; (iii) any law, ordinance, rule or
      regulation of any governmental authority; or (iv) any applicable order, writ,
      judgment or decree of any court or other competent authority and will not result
      in the creation of any lien, charge or encumbrance on any of the
      Assets.

    

    
      
        	(b)	
                Litigation 

              

      

    

    

    There
      is
      no claim, demand, legal action, administrative proceeding, lawsuit, governmental
      inquiry or investigation relating to the Assets pending or, to the Seller's
      knowledge, threatened. Nor are there any bankruptcy, reorganization or
      arrangement proceedings pending, being contemplated by or, to the knowledge
      of
      the Seller, threatened against the Seller.

    

    
      
        	5.	
                Buyer's
                  Representations and Warranties 

              

      

    

     

    The
      Buyer
      represents and warrants:

    

    
      
        	(a)	
                Legal
                  Status and Authority:

              

      

    

    

    (i)    The
      Buyer
      is a corporation validly organized and existing and in good standing, under
      the
      laws of the state of Delaware and has the power and authority to own its
      property and to carry on its business, as now conducted, and to enter into
      and
      to carry out the terms of this Agreement. 

    

    (ii)   The
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated hereby have been duly authorized by all necessary
      action on behalf of the Buyer, and the Buyer is not subject to any charter,
      bylaw, lien or encumbrance of any kind, agreement, instrument, order or decree
      of any court or governmental body which would prevent consummation of the
      actions contemplated by this Agreement.

    

    
      
        	6.	
                Time

              

      

    

    

    Time
      is
      of the essence of this Agreement.

    

    
      
        	7.	
                Further
                  Assurances

              

      

    

    

    The
      Seller and the Buyer will do, execute and deliver or will cause to be done,
      executed and delivered all such further acts, documents and things as may be
      reasonably required for the purpose of giving effect to this
      Agreement.

    

    
      
        	8.	
                Assignment

              

      

    

    

    This
      Agreement cannot be assigned to another party except with the prior written
      consent of both the Buyer and the Seller.

    

    
      
        	9.	
                Notices

              

      

    

    

    
      	9.1	
              Any
                notice under this Agreement will be given in writing and may be sent
                by
                fax, telex, telegram or may be delivered or mailed by prepaid post
                addressed to the party to which notice is to be given at the address
                indicated above, or at another address designated by that party in
                writing.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	9.2	
              If
                notice is sent by fax, telex, telegram or is delivered, it will be
                deemed
                to have been given at the time of transmission or
                delivery.

            

    

    

    
      	9.3	
              If
                notice is mailed, it will be deemed to have been received 48 hours
                following the date of mailing of the
                notice.

            

    

    

    
      	9.4	
              If
                there is an interruption in normal mail service due to strike, labour
                unrest or other cause at or before the time a notice is mailed the
                notice
                will be sent by fax, telex, telegram or will be
                delivered.

            

    

    

    
      
        	10.	
                Amendments

              

      

    

    

    This
      Agreement may be amended, waived, discharged, or terminated only by instrument
      in writing signed by the party against whom enforcement of the amendment,
      waiver, discharge or termination is sought.

    

    
      
        	11.	
                Execution
                  in Counterpart 

              

      

    

    

    This
      Agreement may be signed in counterpart and each such counterpart, whether in
      original or facsimile form, together shall constitute a true original and
      provide satisfactory evidence that this Agreement has been duly executed by
      the
      parties hereto.

    

    IN
      WITNESS WHEREOF
      the
      Buyer and the Seller have executed and delivered this Agreement as of the day
      and year first written above.

    

    COVENTRY
      CAPITAL LLC

    

    

    

    

    

                                                                                                                       

    Per: Authorized
      Signatory

    

    

    RADIAL
      ENERGY INC. 

    

    

    

     

    
      /s/
        G.
        Leigh Lyons

    

                                                                                                                       

    Per:
       G.
      Leigh
      Lyons, PresidentLOAN
      AGREEMENT

     

     

    THIS
      AGREEMENT,
      dated
      for reference the 24th day of May, 2007, is made

     

    
      	BETWEEN:	
              COACH
                CAPITAL LLC,
                having an address of EPS-D (2016), PO Box 02-5548, Miami, Florida,
                USA,
                33102

            

    

    

    (hereinafter
      referred to as the “Lender”)

    

    
      	AND:	
              RADIAL
                ENERGY INC.,
                a
                company incorporated under the laws of the State of Nevada, having
                an
                office at 1200 Smith Street, Suite 1600, Two Allen Center Building,
                Houston, Texas, USA, 77002

            

    

    

    (hereinafter
      referred to as the “Borrower”)

     

    WHEREAS
      the
      Borrower wishes to borrow and the Lender is willing to lend to the Borrower
      the
      sum of One Million, Three Hundred Thousand Dollars in US funds (US$1, 300,000)
      on the terms hereinafter set out.

     

    NOW
      THEREFORE THIS AGREEMENT WITNESSES
      that in
      consideration of the premises and the mutual covenants and agreements
      hereinafter set forth, the parties hereto agree as follows:

     

    
      	1.	
              Definitions

            

    

     

    Where
      used in this Agreement, the following words and phrases shall have the following
      meaning:

     

    
      	(a)	
              “Agreement”
                means this Agreement and the schedules hereto, as at any time amended
                or
                modified and in effect;

            

    

     

    
      	(b)	
              “Charter”
                means the Memorandum and Articles, the Articles and By-Laws or other
                constating documents of the Borrower, as at any time amended or modified
                and in effect;

            

    

     

    
      	(c)	
              “Event
                of Default” means any event specified in subsection
                7.1;

            

    

     

    
      	(d)	
              “Lender’s
                Security” means the Note;

            

    

     

    
      	(e)	
              “Loan”
                means the loan by the Lender to the Borrower established pursuant
                to
                subsection 3.1; and

            

    

     

    
      	(f)	
              “Note”
                means the non-interest bearing promissory note to be made by the
                Borrower
                to the Lender as evidence of the Loan which shall substantially be
                in the
                form set out in Schedule “A”.

            

    

     

    
      	2.	
              INTERPRETATION

            

    

     

    
      	2.1	
              Governing
                Law

            

    

     

    This
      Agreement is governed by the laws of the State of Nevada and the parties attorn
      to the non-exclusive jurisdiction of the courts of Nevada for the resolution
      of
      all disputes under this Agreement.

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    
      	2.2	
              Severability

            

    

     

    If
      any
      one or more of the provisions contained in this Agreement is found to be
      invalid, illegal or unenforceable in any respect, the validity, legality and
      enforceability of the remaining provisions contained herein will not in any
      way
      be affected or impaired thereby.

     

    
      	2.3	
              Parties
                in Interest

            

    

     

    This
      Agreement enures to the benefit of and is binding on the parties hereto and
      their respective successors and permitted assigns.

     

    
      	2.4	
              Headings
                and Marginal
                References

            

    

     

    The
      division of this Agreement into sections, subsections, paragraphs and
      subparagraphs and the insertion of headings are for convenience of reference
      only and do not affect the construction or interpretation of this
      Agreement.

     

    
      	2.5	
              Currency

            

    

     

    All
      statements of, or references to, dollar amounts in this Agreement means lawful
      currency of the United States of America.

     

    
      	3.	
              THE
                LOAN

            

    

     

    
      	3.1	
              Establishment
                of the Loan

            

    

     

    The
      Lender agrees, on the terms and conditions set forth in this Agreement, to
      lend
      to the Borrower the sum of One Million, Three Hundred Thousand Dollars
      ($1,300,000).

     

    
      	3.2	
              Evidence
                of Indebtedness

            

    

     

    Indebtedness
      of the Borrower to the Lender in respect of the Loan will be evidenced by the
      Note, which will be made by the Borrower to the Lender at the time funds are
      advanced, a copy of which form is attached hereto as Schedule “A”.

     

    
      	3.3	
              Repayment
                of the Loan

            

    

     

    The
      Borrower will repay the Loan upon demand from the Lender. The Borrower may
      repay
      the Loan at any time without penalty, bonus or charges and must pay the Loan
      immediately after repaying
      the convertible debts issued by Cornell Capital Partners LP and before the
      repayment to any other long term debt currently outstanding or not yet
      incurred.

     

    
      	3.4	
              Interest
                

            

    

     

    The
      Loan
      will be subject to a Two Percent (2%) interest charge calculated monthly and
      payable on a monthly basis on the seventeenth day of each month the Agreement
      is
      in effect commencing June 17, 2007. 

     

    In
      the
      event the Borrower is unable to pay any interest charge due and owing to the
      Lender on the required date, the Lender may, at its option, grant an extension
      in respect of the interest payment in question or render the whole Loan due
      and
      payable.

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    
      	3.5	
              Conversion
                into Securities

            

    

     

    During
      the term of the Agreement, the Lender will have the option to convert the Loan,
      or any portion thereof, into securities of the Borrower. 

     

    In
      the
      event the Lender wishes to convert the loan into shares, the shares will be
      offered at a price per share of (a) $1.0536 (the “Fixed Conversion Price”) or
      (b) ninety percent (90%) of the lowest daily volume weighted average price
      during the fifteen (15) trading days immediately preceding the Conversation
      Date
      (the “Market Conversion Price”). 

     

    In
      any
      event, no amount of the Loan will be convertible into shares of the Borrower
      until such time as the Borrower has repaid the convertible debts issued by
      Cornell Capital Partners LP. 

     

    A
      Notice
      of Conversion is attached hereto as Schedule “B”.

     

    
      	4.	
              SECURITY
                FOR THE LOAN

            

    

     

    
      	4.1	
              Costs,
                Charges and Expenses

            

    

     

    The
      Borrower will assume and pay all costs, charges and expenses, including
      reasonable solicitors’ costs, charges and expenses on a special costs basis,
      which may be incurred by the Lender in respect of this Agreement or the Lender’s
      Security or which may be incurred by the Lender in respect of any proceedings
      taken or things done by the Lender in connection therewith to collect, protect,
      realize or enforce the Lender’s Security.

     

    
      	5.	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    
      	5.1	
              Representations
                and Warranties

            

    

     

    The
      Borrower represents and warrants to the Lender that:

     

    
      	
              (a)

            	
              the
                Borrower is a corporation duly incorporated, validly existing and
                in good
                standing under the laws of the State of
                Nevada;

            

    

     

    
      	
              (b)

            	
              the
                Borrower has all requisite corporate power and authority to enter
                into
                this Agreement and to grant the Lender’s Security and to carry out the
                obligations contemplated herein and
                therein;

            

    

     

    
      	
              (c)

            	
              this
                Agreement and the Lender’s Security have been duly and validly authorized,
                executed and delivered by the Borrower and are valid obligations
                of it;
                and

            

    

     

    
      	
              (d)

            	
              no
                Event of Default and no event which, with the giving of notice or
                lapse of
                time would become an Event of Default, has occurred or is
                continuing.

            

    

     

    
      	5.2	
              Survival
                of Representations and
                Warranties

            

    

     

    All
      representations and warranties made herein will survive the delivery of this
      Agreement to the Lender and no investigation at any time made by or on behalf
      of
      the Lender shall diminish in any respect whatsoever its rights to rely on those
      representations and warranties. All statements contained in any certificate
      or
      other instrument delivered by or on behalf of the Borrower under or pursuant
      to
      this Agreement will constitute representations and warranties made by the
      Borrower thereunder.

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    
      	6.	
              COVENANTS
                OF THE BORROWER

            

    

     

    The
      Borrower covenants and agrees with the Lender that, at all times during the
      currency of this Agreement, it will:

     

    
      	
              (a)

            	
              pay
                the Loan and all other monies required to be paid to the Lender pursuant
                to this Agreement in the manner set forth
                herein;

            

    

     

    
      	
              (b)

            	
              duly
                observe and perform each and every of its covenants and agreements
                set
                forth in this Agreement and the Lender’s
                Security;

            

    

     

    
      	
              (c)

            	
              provide
                the Lender with immediate notice of any Event of Default;
                and

            

    

     

    
      	
              (d)

            	
              do
                all things necessary to obtain and maintain the Lender’s Security in good
                standing and make payment of all fees and charges in respect
                thereto.

            

    

     

    
      	7.	
              EVENT
                OF DEFAULT

            

    

     

    
      	7.1	
              Definition
                of Event of Default

            

    

     

    The
      Loan,
      costs and any other money owing to the Lender under this Agreement will
      immediately become payable upon demand by the Lender or, unless otherwise waived
      in writing by the Lender, in any of the following events:

     

    
      	
              (a)

            	
              if
                the Borrower defaults in any payment when due under this
                Agreement;

            

    

     

    
      	
              (b)

            	
              if
                the Borrower commits any default under any of the Lender’s Security
                instruments;

            

    

     

    
      	
              (c)

            	
              if
                the Borrower becomes insolvent or makes a general assignment for
                the
                benefit of its creditors, or if any order is made or an effective
                resolution is passed for the winding-up, merger or amalgamation of
                the
                Borrower or if the Borrower is declared bankrupt or if a custodian
                or
                receiver be appointed for the Borrower under the applicable bankruptcy
                or
                insolvency legislation, or if a compromise or arrangement is proposed
                by
                the Borrower to its creditors or any class of its creditors, or if
                a
                receiver or other officer with like powers is appointed for the
                Borrower;

            

    

     

    
      	
              (d)

            	
              if
                the Borrower defaults in observing or performing any other covenant
                or
                agreement of this Agreement on its part to be observed or performed
                and
                such default has continued for a period of seven (7) days after notice
                in
                writing has been given by the Lender to the Borrower specifying the
                default.

            

    

     

    
      	8.	
              GENERAL

            

    

     

    
      	8.1	
              Waiver
                or Modification

            

    

     

    No
      failure on the part of the Lender in exercising any power or right hereunder
      will operate as a waiver of power or right nor will any single or partial
      exercise of such right or power preclude any other right or power hereunder.
      No
      amendment, modification or waiver of any condition of this Agreement or consent
      to any departure by the Borrower therefrom will be effective unless it is in
      writing signed by the Lender. No notice to or demand on the Borrower will
      entitle the Borrower to any other further notice or demand in similar or other
      circumstances unless specifically provided for in this Agreement.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    
      	8.2	
              Time

            

    

     

    Time
      is
      of the essence of this Agreement.

     

    
      	8.3	
              Further
                Assurances

            

    

     

    The
      parties to this Agreement will do, execute and deliver or will cause to be
      done,
      executed and delivered all such further acts, documents and things as may be
      reasonably required for the purpose of giving effect to this
      Agreement.

     

    
      	8.4	
              Assignment

            

    

     

    The
      Borrower may not assign this Agreement or its interest herein or any part hereof
      except with the prior written consent of the Lender.

     

    
      	9.	
              NOTICES

            

    

     

    
      
        	9.1	
                Anynotice
                  under this Agreement will be given in writing and may be sent by
                  fax,
                  telex, telegram or may be delivered or mailed by prepaid post addressed
                  to
                  the party to which notice is to be given at the address indicated
                  above,
                  or at another address designated by that party in
                  writing.

              

      

    

     

    
      	9.2	
              If
                notice is sent by fax, telex, telegram or is delivered, it will be
                deemed
                to have been given at the time of transmission or
                delivery.

            

    

     

    
      	9.3	
              If
                notice is mailed, it will be deemed to have been received 48 hours
                following the date of mailing of the
                notice.

            

    

     

    
      	9.4	
              If
                there is an interruption in normal mail service due to strike, labour
                unrest or other cause at or before the time a notice is mailed the
                notice
                will be sent by fax, telex, telegram or will be
                delivered.

            

    

     

    
      	10.	
              AMENDMENTS

            

    

     

    This
      Agreement may be amended, waived, discharged, or terminated only by instrument
      in writing signed by the party against whom enforcement of the amendment,
      waiver, discharge or termination is sought.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    
      	11.	
              EXECUTION
                IN COUNTERPART

            

    

    

    This
      Agreement may be signed in counterpart and each such counterpart, whether in
      original or facsimile form, together shall constitute a true original and
      provide satisfactory evidence that this Agreement has been duly executed by
      the
      parties hereto.

     

    IN
      WITNESS WHEREOF
      the
      Lender and the Borrower have executed and delivered this Agreement as of the
      day
      and year first written above.

    

    COACH
      CAPITAL LLC

    

     

    
      

        /s/
          Michael
          Laidlaw

      

                                                                                                                             
        

      Per: Michael
        Laidlaw, Secretary

      

      

      RADIAL
        ENERGY INC. 

      

      

      

      

      

        /s/
          G.
          Leigh Lyons

      

      
                                                                                                                               
          

      

      Per:
         G.
        Leigh
        Lyons, President

       

      
        
          
          

        

        
          -
            6
            -

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        “A”

       

      to
        the
        Loan Agreement dated for reference the 24th
        day of
        May, 2007

      between
        Coach Capital LLC and Radial Energy Inc.

       

      
        
          

        

      PROMISSORY
        NOTE

       

      Principal
        Amount: US
        $1,300,000      

      

      For
        value
        received, Radial
        Energy Inc. (the
        "Borrower") hereby promises to pay to Coach
        Capital LLC
        (the
        "Lender") the principal sum of One Million, Three Hundred Thousand Dollars
        in US
        funds (US$1,300,000) upon the earlier of:

       

      
        	(i)	
                demand:

              

      

       

      
        	(ii)	
                any
                  change of control of the Borrower ("control" being defined as ownership
                  of
                  or control of direction over, directly or indirectly, 20% or more
                  of the
                  outstanding voting securities of the Borrower);
                  and

              

      

       

      
        	(iii)	
                the
                  occurrence of an Event of Default (as defined in the Loan Agreement
                  between the Borrower and the Lender dated for reference May 17,
                  2007),

              

      

      

      together
        with any interest calculated at a rate of two percent (2%) on a monthly basis
        that remains unpaid upon repayment of the Loan. All payments under this
        promissory note will be made by cheque, bank draft or wire transfer (pursuant
        to
        wire transfer instructions provided by the Lender from time to time) and
        delivered to the Lender. 

      

      The
        undersigned is entitled to prepay this promissory note, in whole or in part,
        without notice or penalty. The undersigned waives demand and presentment
        for
        payment, notice of non-payment, protest, notice of protest and notice of
        dishonour. This promissory note will be governed by and construed in accordance
        with the laws of the State of Nevada. 

      

      Dated:
        May 24, 2007.

      

      RADIAL
        ENERGY INC.

      

      

      

      

      

      

      
                                                                                                                               
          

      

      Per: G.
        Leigh
        Lyons, President

      

      
        
          
          

        

        
          -
            7
            -

          
            

          

        

        
          
          

        

      

      SCHEDULE
        “B”

      

       

      to
        the
        Loan Agreement dated for reference the 24th
        day of
        May, 2007

      between
        Coach Capital LLC and Radial Energy Inc.

       

        
          

        

      

       

      CONVERSION
        FORM

      

      

      

      TO: Radial
        Energy Inc.
        (Company) 

      

      

      The
        undersigned Holder of a Loan in the amount of One Million, Three Hundred
        Thousand Dollars in US funds (US$1,300,000) hereby irrevocably elects to
        convert
        the said Loan (or $ ______________ thereof) into securities in accordance
        with
        the Terms and Conditions of the Loan Agreement and directs that the securities
        issuable and deliverable upon the conversion be issued and delivered to the
        address indicated below.

       

      

      
        	Dated:                                                                                                               	                                                                                                                       
                
	 	(Signature of
                Holder)

      

      
 

      
                                                                                                                               
          

      

      (Name
        of Holder)

      

      

      
                                                                                                                               
          

      

      (Address
        of Holder)

      

      

      
                                                                                                                               
          

         

      

      

      
                                                                                                                               
          

       

      

      
        
          
          

        

        
          -
            8
            -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]