Document:

Exhibit
10.7

	
  LOAN

  NUMBER

  	
   

  	
  LOAN

  NAME

  	
   

  	
  ACCT.

  NUMBER

  	
   

  	
  AGREEMENT

  DATE

  	
   

  	
  INITIALS

  
	
  811006538

  	
   

  	
  NOVA BIOFUELS
  SENECA

  LLC

  	
   

  	
  N3188350

  	
   

  	
  01/09/07

  	
   

  	
  EJS

  

 

	
  NOTE 

  AMOUNT

  	
   

  	
  INDEX

   (w/Margin)

  	
   

  	
  RATE

  	
   

  	
  MATURITY 

  DATE

  	
   

  	
  LOAN 

  PURPOSE

  
	
  $2,520,000.00

  	
   

  	
  Not
  Applicable

  	
   

  	
  8.25%

  	
   

  	
  01/09/10

  	
   

  	
  Commercial

  

Creditor
Use Only

COMMERCIAL LOAN AGREEMENT

Single Advance Loan

DATE AND PARTIES.  The date of this Commercial Loan Agreement
(Agreement) is January 9, 2007.  The
parties and their addresses are as follows:

LENDER:

CENTRUE BANK

201 E. Main St.

Streator, Illinois 61364

BORROWER:

NOVA BIOFUELS SENECA LLC

a Delaware Limited Liability Company

2777 ALLEN PARKWAY SUITE 860

HOUSTON, Texas 77019

1.             DEFINITIONS.  For the purposes of this Agreement, the
following terms have the following meanings.

A.            Accounting Terms.  In this Agreement, any accounting terms that
are not specifically defined will have their customary meanings under generally
accepted accounting principles.

B.            Insiders.  Insiders include those defined as insiders by
the United States Bankruptcy Code, as amended; or to the extent left undefined,
include without limitation any officer, employee, stockholder or member,
director, partner, or any immediate family member of any of the foregoing, or
any person or entity which directly or indirectly, controls, is controlled by
or is under common control with me.

C.            Loan.  The Loan refers to this transaction
generally, including obligations and duties arising from the terms of all
documents prepared or submitted for this transaction.

D.            Loan Documents.  Loan Documents refer to all the documents
executed as a part of or in connection with the Loan.

 1
 

E.             Pronouns.  The pronouns “I”, “me” and “my” refer to
every Borrower signing this Agreement, individually or together.  “You” and “your” refers to the Loan’s lender.

F.             Property.  Property is any property, real, personal or
intangible, that secures my performance of the obligations of this Loan.

2.             SINGLE ADVANCE.  In accordance with the terms of this
Agreement and other Loan Documents, you will provide me with a term note in the
amount of $2,520,000.00 (Principal).  I
will receive the funds from this Loan in one advance.  No additional advances are contemplated,
except those made to protect and preserve your interests as provided in this
Agreement or other Loan Documents.

3.             MATURITY DATE.  I agree to fully repay the Loan by January 9,
2010.

4.             WARRANTIES AND REPRESENTATIONS.  I make to you the following warranties and
representations which will continue as long as this Loan is in effect, except
when this Agreement provides otherwise.

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 Loan and the obligation evidenced by the Note 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.

D.            Hazardous Substances.  Except as disclosed in the Environmental
Reports identified on Schedule A hereto, no Hazardous Substance, underground
tanks, private dumps or open wells are currently located at, on, in, under or
about the Property.

E.             Use of Property.  Except as disclosed in the Environmental
Reports identified on Schedule A hereto, I do not know or have reason to know
that any Hazardous Substance has been discharged, leached or disposed of, in
violation of any Environmental Law, from the property onto, over or into any
other property, or from any other property onto, over or into the property.

F.             Environmental Laws.  Except as disclosed in the Environmental
Reports identified on Schedule A hereto, I have no knowledge or reason to
believe that there is any pending or threatened investigation, claim, judgment
or order, violation, lien, or

 2
 

other notice under any
Environmental Law that concerns me or the property.  The property and any activities on the
property are in full compliance with all Environmental Law.

G.            Loan Purpose.  The purpose of this Loan is to purchase 54
acres of commercial real estate.

H.            No Other Liens.  I will not create, permit or suffer any lien
or encumbrance upon any of my properties for or by anyone, other than you,
except for:  nonconsensual liens imposed
by law arising out of the ordinary course of business on obligations that are
not overdue or which I am contesting in good faith after making appropriate
reserves; valid purchase money security interests on personal property; or any
other liens specifically agreed to by you in writing.

I.              Compliance With Laws.  I am not violating any laws, regulations,
rules, orders, judgments or decrees applicable to me or my property, except for
those which I am challenging in good faith through proper proceedings after
providing adequate reserves to fully pay the claim and its challenge should I
lose.

J.             Legal Dispute.  There are no pending or threatened lawsuits,
arbitrations or other proceedings against me or my property that singly or
together may materially and adversely affect my property, operations, financial
condition, or business.

K.            Adverse Agreements.  I am not a party to, nor am I bound by, any
agreement that is now or is likely to become materially adverse to my business,
Property or operations.

L.            Other Claims.  There are no outstanding claims or rights
that would conflict with the execution, delivery or performance by me of the
terms and conditions of this Agreement or the other Loan Documents.  No outstanding claims or rights exist that
may result in a lien on the Property, the Property’s proceeds and the proceeds
of proceeds, except liens that were disclosed to and agreed to by you in writing.

M.           Solvency.  I am able to pay my debts as they mature, my
assets exceed my liabilities and I have sufficient capital for my current and
planned business and other activities.  I
will not become insolvent by the execution or performance of this Loan.

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

 3
 

B.            Frequency.  In addition to the financial statements
provided to you prior to closing, I will provide you with current financial
statements on an annual basis, or as otherwise requested by you, until I have
performed all of my obligations under the Loan and you terminate the Loan in
writing.

C.            SEC Reports.  I will provide you with true and correct
copies of all reports, notices or statements that I provide to the Securities
and Exchange Commission, any securities exchange or my stockholders, owners, or
the holders of any material indebtedness as soon as available or at least within
20 days after issuance.

D.            Requested Information.  I will provide you with any other information
about my operations, financial affairs and condition within 10 days after your
request.

E.             Additional Financial Statements
Term.  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.

6.             COVENANTS.  Until the Loan and all related debts,
liabilities and obligations are paid and discharged, I will comply with the
following terms, unless you waive compliance in writing.

A.            Participation.  I consent to you participating or syndicating
the Loan and sharing any information that you decide is necessary about me and
the Loan with the other participants or syndicators.

B.            Inspection.  Following your written request, I will
immediately pay for all one-time and recurring out-of-pocket costs that are
related to the inspection of my records, business or Property that secures the
Loan, provided that such inspections identify a default.  Upon reasonable notice, I will permit you or
your agents to enter any of my premises and any location where my Property is
located during regular business hours to do the following.

(1)           You may inspect,
audit, check, review and obtain copies from my books, records, journals,
orders, receipts, and any correspondence and other business related data.

(2)           You may discuss my
affairs, finances and business with any one who provides you with evidence that
they are a creditor of mine, the sufficiency of which will be subject to your
sole discretion.

(3)           You may inspect my
Property, audit for the use and disposition of the Property’s proceeds and
proceeds of proceeds; or do whatever you decide is necessary to preserve and
protect the Property and your interest in the Property.

After prior notice to me,
you may discuss my financial condition and business operations with my
independent accountants, if any, or my chief financial officer and I may be
present during these discussions.  As
long as the Loan is outstanding, I will direct all of

 4
 

my accountants and
auditors to permit you to examine my records in their possession and to make
copies of these records.  You will use
your best efforts to maintain the confidentiality of the information you or
your agents obtain, except you may provide your regulator, if any, with
required information about my financial condition, operation and business or
that of my parent, subsidiaries or affiliates.

C.            Business Requirements. 
I will preserve and maintain my present existence and good standing in
the jurisdiction where I am organized and all of my rights, privileges and
franchises.  I will do all that is needed
or required to continue my business or activities as presently conducted, by
obtaining licenses, permits and bonds everywhere I engage in business or
activities or own, lease or locate my property. 
I will obtain your prior written consent before I cease my business or
before I engage in any new line of business that is materially different from
my present business.

D.            Compliance with Laws.  I will not violate any laws, regulations,
rules, orders, judgments or decrees applicable to me or my Property, except for
those which I challenge in good faith through proper proceedings after
providing adequate reserves to fully pay the claim and its appeal should I lose.  Laws include without limitation the Federal
Fair Labor Standards Act requirements for producing goods, the federal Employee
Retirement Income Security Act of 1974’s requirements for the establishment,
funding and management of qualified deferred compensation plans for employees,
health and safety laws, environmental laws, tax laws, licensing and permit laws.  On your request, I will provide you with
written evidence that I have fully and timely paid my taxes, assessments and
other governmental charges levied or imposed on me, my income or profits and my
property.  Taxes include without
limitation sales taxes, use taxes, personal property taxes, documentary stamp
taxes, recordation taxes, franchise taxes, income taxes, withholding taxes,
FICA taxes and unemployment taxes.  I
will adequately provide for the payment of these taxes, assessments and other
charges that have accrued but are not yet due and payable.

E.             New Organizations.  I will notify Lender and agree to any
necessary changes to the Loan Documents before I organize or participate in the
organization of any entity, merge into or consolidate with any one, permit any
one else to merge into me, acquire all or substantially all of the assets of
any one else or otherwise materially change my legal structure, management,
ownership or financial condition.

F.             Dealings with Insiders.  I will not purchase, acquire or lease any
property or services from, or sell, provide or lease any property or services
to, or permit any outstanding loans or credit extensions to, or otherwise deal
with, any Insiders except as required under contracts existing at the time I
applied for the Loan and approved by you or as this Agreement otherwise permits.  I will not change or breach those contracts
existing at Loan application so as to cause an acceleration of or an increase
in any payment due.

G.            Other Debts.  I will pay when due any and all other debts
owed or guaranteed by me and will faithfully perform, or comply with all the
conditions and obligations imposed on me concerning the debt or guaranty.

 5
 

H.            Other Liabilities.  I will not incur, assume or permit any debt
evidenced by notes, bonds or similar obligations, except:  debt in existence on the date of this
Agreement and fully disclosed to you; debt subordinated in payment to you on
conditions and terms acceptable to you; accounts payable incurred in the
ordinary course of my business and paid under customary trade terms or
contested in good faith with reserves satisfactory to you.

I.              Notice to You.  I will promptly notify you of any material
change in my financial condition, of the occurrence of a default under the
terms of this Agreement or any other Loan Document, or a default by me under
any agreement between me and any third party which materially and adversely
affects my property, operations, financial condition or business.

J.             Certification of No Default.  On your request, my chief financial officer
or my independent accountant will provide you with a written certification that
to the best of their knowledge no event of default exists under the terms of this
Agreement or the other Loan Documents, and that there exists no other action,
condition or event which with the giving of notice or lapse of time or both
would constitute a default.  As
requested, my chief financial officer or my independent accountant will also
provide you with computations demonstrating compliance with any financial
covenants and ratios contained in this Agreement.  If an action, condition or event of default
does exist, the certificate must accurately and fully disclose the extent and
nature of this action, condition or event and state what must be done to
correct it.

K.            Use of Loan Proceeds.  I will not permit the loan proceeds to be
used to purchase, carry, reduce, or retire any loan originally incurred to
purchase or carry any margin stock or otherwise cause the Loan to violate
Federal Reserve Board Regulations U or X, or Section 8 of the Securities and
Exchange Act of 1934 and its regulations, as amended.

L.            Dispose of No Assets.  Without your prior written consent or as the
Loan Documents permit, I will not sell, lease, assign, transfer, dispose of or
otherwise distribute all or substantially all of my assets to any person other
than in the ordinary course of business for the assets’ depreciated book value
or more.

M.           No Other Liens.  I will not create; permit or suffer any lien
or encumbrance upon any of my properties for or by anyone, other than you,
except for:  nonconsensual liens imposed
by law arising out of the ordinary course of business on obligations that are
not overdue or which I am contesting in good faith after making appropriate
reserves; valid purchase money security interests on personal property; or any
other liens specifically agreed to by you in writing.

N.            Guaranties.  Other than guarantying debt from the parent company
that is subordinate to the Lender’s debt, I will not guaranty or become liable
in any way as surety, endorser (other than as endorser of negotiable
instruments in the ordinary course of business) or accommodation endorser or
otherwise for the debt or obligations of any other person or entity, except to
you or as you otherwise specifically agree in writing.

 6
 

O.            No Default under Other Agreements.  I will not allow to occur, or continue
unremedied, any act, event or condition which constitutes a default, or which,
with the passage of time or giving of notice, or both, would constitute a
default under any agreement, document, instrument or undertaking to which I am
a party or by which I may be bound.

P.            Legal Disputes.  I will promptly notify you in writing of any
threatened or pending lawsuit, arbitration or other proceeding against me or
any of my property, not identified in my financial statements, or that singly
or together with other proceedings may materially and adversely affect my
property, operations, financial condition or business.  I will use my best efforts to bring about a
favorable and speedy result of any of these lawsuits, arbitrations or other
proceedings.

Q.            Other Notices.  I will immediately provide you with any
information that may materially and adversely affect my ability to perform this
Agreement and of its anticipated effect.

R.            No Charge in Capital.  Other than as a result of efforts to maintain
or increase capital, I will not release, redeem, retire, purchase or otherwise
acquire, directly or indirectly, any of my capital stock or other equity
security or partnership interest, or make any change capital structure, except
to the extent required by any agreements signed prior to this Agreement and
disclosed to you or with your prior written consent.

S.            Loan Obligations.  I will make full and timely payment of all
principal and interest obligations, and comply with the other terms and
agreements contained in this Agreement and in the other Loan Documents.

T.            Insurance.  I will obtain and maintain insurance with
insurers, in amounts and coverages that are acceptable to you and customary
with industry practice.  This may include
without limitation insurance policies for public liability, fire, hazard and
extended risk, workers compensation, and, at your request, business
interruption and/or rent loss insurance. 
At your request, I will deliver to you certified copies of all of these
insurance policies, binders or certificates. 
I will obtain and maintain a mortgagee or lender loss payee endorsement
for you when these endorsements are available. 
I will immediately notify you of cancellation or termination of
insurance.  I will require all insurance
policies to provide you with at least 10 days prior written notice to you of
cancellation or modification.  I consent
to you using or disclosing information relative to any contract of insurance
required by the Loan for the purpose of replacing this insurance.  I also authorize my insurer and you to
exchange all relevant information related to any contract of insurance required
by any document executed as part of this Loan.

U.            Property Maintenance.  I will keep all tangible and intangible
property that I consider necessary or useful in my business in good working
condition by making all needed repairs, replacements and improvements and by
making all rental, lease or other payments due on this property.

 7
 

V.            Property Loss.  I will immediately notify you, and the
insurance company when appropriate, of any material casualty, loss or
depreciation to the Property or to my other property that affects my business.

W.           Reserves.  You may set aside and reserve Loan proceeds
for Loan interest, fees and expenses, taxes, and insurance.  I grant you a security interest in the
reserves.  For the term of the Loan and
any of its extensions or renewals, I will maintain a reserve of $52,000.00 for
the following purposes:  The reserve
account is equivalent to the first three months of interest..

No interest will accrue
on any reserve Loan proceeds. 
Disbursement of reserves is disbursement of the Loan’s proceeds.  At my request, you will disburse the reserves
for the purpose they were set aside for, as long as I am not in default under
this Agreement.  You may directly pay
these reserved items, reimburse me for payments I made, or reduce the reserves
and increase the Loan proceeds available for disbursement.

X.            Additional Taxes.  I will pay all filing and recording costs and
fees, including any recordation, documentary or transfer taxes or stamps, that
are required to be paid with respect to this Loan and any Loan Documents.

7.             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
or any co-signer, endorser, surety or guarantor of this Agreement or any other
obligations I have with you.

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

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

E.             Other Documents.  A material default occurs under the terms of
any other Loan Document.

F.             Other Agreements.  I am in material 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 materially untrue, inaccurate, or
conceals a material fact at the time it is made or provided.

 8
 

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 materially 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 Agreement
or that the prospect for payment or performance of the Loan 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 provide in the Note will not be considered a default.

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

A.            Acceleration.  You may make all or any part of the amount
owing by the terms of the Loan immediately due. 
If I am a debtor in a bankruptcy petition or in an application filed
under section 5(a)(3) of the Securities Investor Protection Act, the Loan is
automatically accelerated and immediately due and payable without notice or
demand upon filing of the petition or application.

B.            Sources.  You may use any and all remedies you have
under state or federal law or in any Loan Document.

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

D.            Payments Made On My Behalf.  Amounts advanced on my behalf will be
immediately due and may be added to the balance owing under the terms of the
Loan, and accrue interest at the highest post-maturity interest rate.

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

 9
 

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 terns of the Loan” means the total amount to which you are entitled
to demand payment under the terms of the Loan 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 Loan, 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.

9.             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 Agreement or any other Loan Document.  Expenses include reasonable attorneys’ fees.  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 this
Loan.  All fees and expenses will be
secured by the Property I have 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.

10.          APPLICABLE LAW.  This Agreement 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.

11.          JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS.  My obligation to pay the Loan is independent
of the obligation of any other person who has also agreed to pay it.  You may sue me alone, or anyone else who is
obligated on the Loan, or any number of us together, to collect the Loan.  Extending the Loan or new obligations under
the Loan, will not affect my duty under the Loan and I will still be obligated
to pay the Loan.  You may assign all or
part of your rights or duties under this Agreement or the Loan Documents
without my consent.  If you assign

 10
 

this Agreement, all of my covenants, agreements,
representations and warranties contained in this Agreement or the Loan
Documents will benefit your successors and assigns.  I may not assign this Agreement or any of my
rights under it without your prior written consent.  The duties of the Loan will bind my
successors and assigns.

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

13.          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 Agreement.

14.          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 Borrower will be deemed to be notice to all Borrowers.  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 Loan and to confirm
your lien status on any Property.  Time
is of the essence.

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

 

	
  BORROWER:

  
	
   

  
	
   

  	
  NOVA
  BIOFUELS SENECA LLC

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Dallas Neil

  	
   

  
	
   

  	
   

  	
  Dallas Neil,
  Manager

  
					

 

 11
 

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:

  	
   

  
	
   

  	
   

  	
  (Notary Public)

  

 

 12Exhibit
10.8

	
  LOAN

  NUMBER

  	
  LOAN NAME

  	
  ACCT

  NUMBER

  	
  NOTE DATE

  	
  INITIALS

  
	
  811006538

  	
  NOVA

  BIOFUELS

  SENECA LLC

  	
  N3188350

  	
  01/09/07

  	
  EJS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOTE

  AMOUNT

  	
  INDEX

  (w/Margin)

  	
  RATE

  	
  MATURITY

  DATE

  	
  LOAN

  PURPOSE

  
	
  $2,520,000.00

  	
  Not Applicable

  	
  8.25%

  Creditor Use

  Only

  	
  01/09/10

  	
  Commercial

  

 

PROMISSORY NOTE

(Commercial - Single Advance)

DATE AND PARTIES.  The date of this Promissory Note (Note) 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

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

A.                                    Pronouns.  The pronouns “I”, “me,” and “my” refer to
each Borrower signing this Note, individually and together.  “You” and “Your” refer to the Lender.

B.                                    Note.  Note refers to this document, and any
extensions, renewals, modifications and substitutions of this Note.

C.                                    Loan.  Loan refers to this transaction generally,
including obligations and duties arising from the terms of all documents
prepared or submitted for this transaction such as applications, security
agreements, disclosures or notes, and this Note.

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D.                                    Loan Documents.  Loan Documents refer to all the documents
executed as a part of or in connection with the Loan.

E.                                      Property.  Property is any property, real, personal or
intangible, that secures my performance of the obligations of this Loan.

F.                                      Percent.  Rates and rate change limitations are
expressed as annualized percentages.

2.                                      PROMISE TO PAY.  For value received, I promise to pay you or
your order, at your address, or at such other location as you may designate,
the principal sum of $2,520,000.00 (Principal) plus
interest from January 9, 2007 on the unpaid Principal balance until this Note
matures or this obligation is accelerated.

3.                                      INTEREST.  Interest will accrue on the unpaid Principal
balance of this Note at the rate of 8.25 percent (Interest Rate).

A.                                    Post-Maturity
Interest.  After
maturity or acceleration, interest will accrue at 12.500 per cent until paid in
full.

INTEREST AFTER
DEFAULT.

If I am in default
under the terms of this Loan, including for failure to pay in full at maturity,
you may without notice to me increase the Interest Rate otherwise payable as
described in this section.  In such
event, interest will accrue on the unpaid Principal balance of this Note at
12.500 percent until paid in full.

B.                                    Maximum
Interest Amount. 
Any amount assessed or collected as interest under the terms of this
Note will be limited to the maximum lawful amount of interest allowed by state
or federal law, whichever is greater. 
Amounts collected in excess of the maximum lawful amount will be applied
first to the unpaid Principal balance. 
Any remainder will be refunded to me.

C.                                    Statutory
Authority.  The
amount assessed or collected on this Note is authorized by the Illinois usury
laws under 815 ILCS 205.

D.                                    Accrual.  Interest accrues using an Actual/360 days
counting method.

4.                                      ADDITIONAL
CHARGES.  As
additional consideration, I agree to pay, or have paid, these additional fees
and charges.

A.                                    Nonrefundable
Fees and Charges. 
The following fees are earned when collected and will not be refunded if
I prepay this Note before the scheduled maturity date.

Document Preparation.  A(n) Document Preparation fee of $12,600.00
payable from separate funds on or before today’s date.

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5.                                      REMEDIAL
CHARGES.  In
addition to interest or other finance charges, I agree that I will pay these
additional fees based on my method and pattern of payment.  Additional remedial charges may be described
elsewhere in this Note.

A.                                    Late Charge.  If a payment is more than 10 days late, I
will be charged 5.000 percent of the Unpaid Portion of Payment or $10.00,
whichever is greater.  However, this
charge will not be greater than $999.98. 
I will pay this late charge promptly but only once for each late
payment.

6.                                      GOVERNING
AGREEMENT.  This
Note is further governed by the Commercial Loan Agreement executed between you
and me as a part of this Loan, as modified, amended or supplemented.  The Commercial Loan Agreement states the
terms and conditions of this Note, including the terms and conditions under
which the maturity of this Note may be accelerated.  When I sign this Note, I represent to you
that I have reviewed and am in compliance with the term contained in the
Commercial Loan Agreement.

7.                                      PAYMENT.  I agree to pay this Note as follows:  I agree to pay this note in 36 payments.  I will make 18 payments of accrued interest
only beginning on February 9, 2007 and continuing on the the same day of each
month thereafter.  I will make 17
payments of principal and accrued interest in the amount of $21,661.52
beginning on August 9, 2008 and continuing on the same day of each month
thereafter.  These payments are amortized
over 240 months.  The entire balance of
unpaid principal and accrued interest will be due on January 9, 2010.

Payments will be rounded to the nearest $.01.  With the final payment I also agree to pay
any additional fees or charges owing and the amount of any advances you have
made to others on my behalf.  Payments
scheduled to be paid on the 29th, 30th or 31st day of a month that contains no
such day will, instead, be made on the last day of such month.

Each payment I make on this Note will be applied first to interest that
is due then to principal that is due, and finally to any charges that I owe
other than principal and interest.  If
you and I agree to a different application of payments, we will describe our
agreement on this Note.  You may change
how payments are applied in your sole discretion without notice to me.  The actual amount of my final payment will
depend on my payment record.

8.                                      PREPAYMENT.  I may prepay thus Loan in full or in part at
any time.  Any partial prepayment will
not excuse any later scheduled payments until I pay in full.

9.                                      LOAN PURPOSE.  The purpose of this Loan is to purchase 54
acres of commercial real estate.

10.                               ADDITIONAL
TERMS.

BORROWER NOT AN ACCOMODATION PARTY.

I agree that I am individually and primarily and (if anyone else has
signed this Note) jointly liable for payment of the indebtedness evidenced by
this Note.  I have not signed this Note
as an accommodation party, surety or guarantor, and I expressly waive (i) any
rights I may have under UCC Section 3-605 (810 ILCS 5/3-605) to a discharge of
my obligation to pay this Note and (ii) 

 3
 

any defenses available to an accommodation party, surety or guarantor,
including but not limited to impairment of collateral.

GOVERNING LAW - JURY WAIVER - JURISDICTION - VENUE.

I agree that this Note 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 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 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 NOTE OR ANY OF THE
LOAN DOCUMENTS OR IN CONNECTION WITH ANY DISPUTE OR CONTROVERSY ARISING
THEREFROM SHALL BE BROUGHT IN SUCH COURT AND PROPERLY VENUED THEREIN.

ADDITIONAL TERMS RELATED TO CONFESSION OF JUDGEMENT.

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 or in connection with the confession of
any judgment hereunder.

11.                               SECURITY.  The Loan is secured by separate security
instruments prepared together with this Note as follows:

	
  Document Name

  	
   

  	
  Parties to
  Document

  
	
   

  	
   

  	
   

  
	
  Mortgage
  - LOT 1 IN SHIPYARD INDUSTRIAL

  PARK

  	
   

  	
  NOVA BIOFUELS SENECA LLC

  

 

and by the following, previously executed, security instruments or
agreements:

SECURITY INTEREST IN DEPOSIT ACCOUNTS.

To secure (i) payment of the Debt and any other loans, indebtedness or
obligations 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 SECURITY INSTRUMENTS.

In addition to any other Property described in any security instruments
prepared together with this Note, I agree that any Property in which I have
previously given you a security interest will also secure my obligations under
this Loan.

12.                               DUE ON SALE OR
ENCUMBRANCE.  You
may, at your option, declare the entire balance of this Note to be immediately
due and payable upon the creation of, or contract for the 

 4
 

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.

13.                               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 By Borrower.  In
addition, I, and any party to this Note and Loan, to the extent permitted by
law, 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
this Note.

(1)                                 You
may renew or extend payments on this Note, 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.

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

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

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

(6)                                 I
agree that any of us signing this Note as a Borrower is authorized to modify
the terms of this Note or any instrument securing, guarantying or relating to
this Note.

(7)                                 I
agree that you may inform any party who guarantees this Loan of any Loan
accommodations, renewals, extensions, modifications, substitutions or future
advances.

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 this Note, or any other Loan
Document, shall not be construed as a waiver by you, unless any such waiver is
in writing arid is signed by you.

14.                               COMMISSIONS.  I understand and agree that you (or your
affiliate) will earn commissions or fees on any insurance products, and may
earn such fees on other services that I buy through you or your affiliate.

 5
 

15.                               COLLATERAL
PROTECTION INSURANCE NOTICE.  Unless I provide you with evidence of the
insurance coverage required by my agreement with you, you may purchase
insurance at my expense to protect your interests in my collateral.  This insurance may, but need not, protect my
interests.  The coverage that you purchase
may not pay any claim that I make or any claim that is made against me in
connection with the collateral.  I may
later cancel any insurance purchased by you, but only after providing you with
evidence that I have obtained insurance as required by our agreement.  If you purchase insurance for the collateral,
I will be responsible for the premiums for that insurance, including interest
and any other charges you may impose in connection with the placement of the insurance,
until the effective date of the cancellation or expiration of the
insurance.  The premiums may be added to
my total outstanding balance or obligation. 
The premiums may be more than the premiums for insurance I may be able
to obtain on my own.

16.                               APPLICABLE LAW.  This Note 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.

17.                               JOINT AND
INDIVIDUAL LIABILITY AND SUCCESSORS.  My obligation to pay the Loan is independent
of the obligation of any other person who has also agreed to pay it.  You may sue me alone, or anyone else who is
obligated on the Loan, or any number of us together, to collect the Loan.  Extending the Loan or new obligations under
the Loan, will not affect my duty under the Loan and I will still be obligated
to pay the Loan.  This Note shall inure
to the benefit of and be enforceable by you and your successors and assigns and
shall be binding upon and enforceable against me and my personal
representatives, successors, heirs and assigns.

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

19.                               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 Note.

20.                               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 Borrower will be deemed to be notice to all
Borrowers.  I will inform you in writing
of any change in my name, address or other application information.  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 Loan and to confirm
your lien status on any Property.  Time
is of the essence.

 6
 

21.                               CREDIT
INFORMATION.  I
agree to supply you with whatever information you reasonably request.  You will make requests for this information
without undue frequency, and will give me reasonable time in which to supply
the information.

22.                               ERRORS AND
OMISSIONS.  I
agree, if requested by you, to fully cooperate in the correction, if necessary,
in the reasonable discretion of you of any and all loan closing documents so
that all documents accurately describe the loan between you and me.  I agree to assume all costs including by way
of illustration and not limitation, actual expenses, legal fees and marketing
losses for failing to reasonably comply with your requests within thirty (30)
days.

CONFESSION OF
JUDGEMENT.  If I default, I authorize any
attorney to appear in a court of record and confess judgment against me in
favor of you.  The confession of judgment
may be without process and for any amount for any amount due on this Note
including collection costs and reasonable attorneys’ fees.  This is in addition to other remedies.

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

BORROWER:

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:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Notary Public)

  

 

 7

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