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Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of February 13, 2006, by and among Barnabus Energy,
      Inc., a Nevada corporation (the “Company”),
      and
      the persons listed on the signature page hereto (the “Purchasers”).

     

    This
      Agreement is made pursuant to the Investment Agreement of even date herewith
      between the Company and the Purchasers (the “Investment
      Agreement”).
      Capitalized terms used and not otherwise defined herein shall have the meanings
      given such terms in the Investment Agreement.

     

    The
      Company and the Purchasers hereby agree as follows:

     

    1.  Definitions.
      As used
      in this Agreement, the following terms shall have the following
      meanings:

     

    “Advice”
shall
      have the meaning set forth in Section 6(d).

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Filing
      Date”
means
      with respect to the Registration Statement required to be filed hereunder for
      the Registrable Shares, the 120th
      calendar
      day following the Closing Date.

     

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

     

    “Losses”
shall
      have the meaning set forth in Section 5(a).

     

    “Person”
means
      an individual, a corporation, a partnership, a limited liability company or
      other entity.

     

    “Plan
      of Distribution”
shall
      have the meaning set forth in Section 2(a).

     

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by a Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Registrable
      Securities”
means
      all of the shares of Common Stock issuable upon conversion of a Debenture or
      exercise of a Warrant, together with any shares of Common Stock issued or
      issuable upon any stock split, dividend or other distribution, recapitalization
      or similar event with respect to the foregoing. 

     

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder, including (in each
      case) the Prospectus, amendments and supplements to the registration statement
      or Prospectus, including pre- and post-effective amendments, all exhibits
      thereto, and all material incorporated by reference or deemed to be incorporated
      by reference in the registration statement.

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Selling
      Shareholder Questionnaire”
shall
      have the meaning set forth in Section 3(a).

     

    “Trading
      Day”
means
      any day on which the Company’s shares are eligible to be traded on OTCBB or upon
      any market in the United States of America where the Common Stock is then listed
      or eligible to be traded.

     

    2.  Registration.

     

    (a)  On
      or
      prior to the Filing Date, the Company shall use its reasonable best efforts
      to
      prepare and file with the Commission a Registration Statement covering the
      resale of 100% of the Registrable Securities for an offering to be made on
      a
      continuous basis pursuant to Rule 415. Each Registration Statement required
      hereunder shall be on Form S-3 (except if the Company is not then eligible
      to
      register for resale the Registrable Securities on Form S-3, in which case such
      Registration shall be on another appropriate form in accordance herewith).
      Each
      Registration Statement required hereunder shall contain (except if otherwise
      directed by the Holders) substantially the “Plan
      of Distribution”
      attached hereto as Annex
      A.
      Subject
      to the terms of this Agreement, the Company shall use its reasonable best
      efforts to cause each Registration Statement to be declared effective under
      the
      Securities Act as promptly as possible after the filing thereof, and shall
      use
      its reasonable best efforts to keep each such Registration Statement
      continuously effective under the Securities Act until the date when all
      Registrable Securities covered by such Registration Statement have been sold
      or
      may be sold without volume restrictions pursuant to Rule 144(k) as determined
      by
      the counsel to the Company pursuant to a written opinion letter to such effect,
      addressed and acceptable to the Company’s transfer agent and the affected
      Holders (the “Effectiveness
      Period”).
      The
      Company shall immediately notify the Holders via facsimile of the effectiveness
      of a Registration Statement on the same day that the Company receives
      notification of the effectiveness from the Commission. 

     

    
      
        
        

      

      
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    (b)  If
      during
      the Effectiveness Period, the number of Registrable Securities at any time
      exceeds 100% of the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall, as necessary, file as soon
      as
      reasonably practicable an additional Registration Statement covering the resale
      by the Holders of not less than 100% of the number of such Registrable
      Securities.

     

    3.  Registration
      Procedures

     

    In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

     

    (a)  Not
      less
      than five Trading Days prior to the filing of a Registration Statement or any
      related Prospectus or any amendment or supplement thereto, the Company shall,
      use reasonable best efforts to furnish to the Holders that have requested them
      in writing copies of all such documents proposed to be filed (including
      documents incorporated or deemed incorporated by reference to the extent
      requested by such Person) and use commercially reasonable efforts to incorporate
      any reasonable comments of the Holders. Each Holder agrees to furnish to the
      Company a completed Questionnaire in the form attached to this Agreement as
      Annex
      B
      (a
“Selling
      Shareholder Questionnaire”)
      not
      less than ten (10) Trading Days prior to the Filing Date. 

     

    (b)  (i)
      Use
      reasonable best efforts to prepare and file with the Commission such amendments,
      including post-effective amendments, to a Registration Statement and the
      Prospectus used in connection therewith as may be necessary to keep such
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements in order to register for resale under
      the Securities Act all of the Registrable Securities; (ii) cause the related
      Prospectus to be amended or supplemented by any required Prospectus supplement,
      and as so supplemented or amended to be filed pursuant to Rule 424; (iii)
      respond as promptly as reasonably possible to any comments received from the
      Commission with respect to a Registration Statement or any amendment thereto
      and, as promptly as reasonably possible, upon request, provide the Holders
      true
      and complete copies of all correspondence from and to the Commission relating
      to
      a Registration Statement; and (iv) comply in all material respects with the
      provisions of the Securities Act and the Exchange Act with respect to the
      disposition of all Registrable Securities covered by a Registration Statement
      during the applicable period in accordance with the intended methods of
      disposition by the Holders thereof set forth in such Registration Statement
      as
      so amended or in such Prospectus as so supplemented.

     

    
      
        
        

      

      
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    (c)  Notify
      the Holders of Registrable Securities to be sold as promptly as reasonably
      possible (i) as to Holders that have so requested in writing to be notified
      (A)
      when a Prospectus or any Prospectus supplement or post-effective amendment
      to a
      Registration Statement has been filed; (B) when the Commission notifies the
      Company whether there will be a “review” of a Registration Statement and
      whenever the Commission comments in writing on such Registration Statement
      (the
      Company shall upon request provide true and complete copies thereof and all
      written responses thereto to each of the Holders); and (C) with respect to
      a
      Registration Statement or any post-effective amendment, when the same has become
      effective; (ii) of any request by the Commission or any other Federal or state
      governmental authority during the period of effectiveness of such Registration
      Statement for amendments or supplements to such Registration Statement or
      Prospectus or for additional information; (iii) of the issuance by the
      Commission or any other federal or state governmental authority of any stop
      order suspending the effectiveness of a Registration Statement covering any
      or
      all of the Registrable Securities or the initiation of any Proceedings for
      that
      purpose; (iv) of the receipt by the Company of any notification with respect
      to
      the suspension of the qualification or exemption from qualification of any
      of
      the Registrable Securities for sale in any jurisdiction, or the initiation
      or
      threatening of any Proceeding for such purpose; and (v) of the occurrence of
      any
      event or passage of time that makes any statement made in a Registration
      Statement or Prospectus or any document incorporated or deemed to be
      incorporated therein by reference untrue in any material respect or that
      requires any revisions to such Registration Statement, Prospectus or other
      documents so that, in the case of such Registration Statement or such
      Prospectus, as the case may be, it will not contain any untrue statement of
      a
      material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements therein, in light of the circumstances
      under
      which they were made, not misleading.

     

    (d)  Use
      reasonable best efforts to avoid the issuance of, or, if issued, obtain the
      withdrawal of (i) any order suspending the effectiveness of a Registration
      Statement, or (ii) any suspension of the qualification (or exemption from
      qualification) of any of the Registrable Securities for sale in any
      jurisdiction, at the earliest practicable moment.

     

    (e)  Furnish
      to each Holder, without charge, at least one conformed copy of each Registration
      Statement and each amendment thereto, including financial statements and
      schedules, all documents incorporated or deemed to be incorporated therein
      by
      reference to the extent requested by such Person, and all exhibits to the extent
      requested by such Person (including those previously furnished or incorporated
      by reference) promptly after the filing of such documents with the
      Commission.

     

    (f)  Promptly
      deliver to each Holder, without charge, as many copies of the Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request in connection with
      resales by the Holder of Registrable Securities. Subject to the terms of this
      Agreement, the Company hereby consents to the use of such Prospectus and each
      amendment or supplement thereto by each of the selling Holders in connection
      with the offering and sale of the Registrable Securities covered by such
      Prospectus and any amendment or supplement thereto, except after the giving
      on
      any notice pursuant to Section 3(c).

     

    
      
        
        

      

      
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    (g)  Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep the
      Registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by the Registration Statements; provided,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified, subject the Company to any
      material tax in any such jurisdiction where it is not then so subject or file
      a
      general consent to service of process in any such jurisdiction.

     

    (h)  If
      requested by the Holders, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to the applicable Registration Statement
      and to enable such Registrable Securities to be in such denominations and
      registered in such names as any such Holders may request.

     

    (i)  Upon
      the
      occurrence of any event contemplated by Section 3(c)(v), as promptly as
      reasonably possible, prepare a supplement or amendment, including a
      post-effective amendment, to each Registration Statement, if applicable, or
      a
      supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither such Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. If
      the
      Company notifies the Holders in accordance with clauses (ii) through (v) of
      Section 3(c) above to suspend the use of any Prospectus until the requisite
      changes to such Prospectus have been made, then the Holders shall suspend use
      of
      such Prospectus. The Company will use its best efforts to ensure that the use
      of
      the Prospectus may be resumed as promptly as is practicable. The Company shall
      be entitled to exercise its right under this Section 3(i) to suspend the
      availability of a Registration Statement and Prospectus for a period not to
      exceed 180 days (which need not be consecutive days) in any 12 month
      period.

     

    (j)  Comply
      with all applicable rules and regulations of the Commission.

     

    
      
        
        

      

      
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    4.  Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with the
      Trading Market on which the Common Stock is then listed for trading and (B)
      in
      compliance with applicable state securities or Blue Sky laws reasonably agreed
      to by the Company in writing (including, without limitation, fees and
      disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities and determination
      of
      the eligibility of the Registrable Securities for investment under the laws
      of
      such jurisdictions as requested by the Holders) (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in the applicable Registration Statement),
      (iii)
      messenger, telephone and delivery expenses, (iv) fees and disbursements of
      counsel for the Company, (v) Securities Act liability insurance, if the Company
      so desires such insurance, and (vi) fees and expenses of all other Persons
      retained by the Company in connection with the consummation of the transactions
      contemplated by this Agreement. In addition, the Company shall be responsible
      for all of its internal expenses incurred in connection with the consummation
      of
      the transactions contemplated by this Agreement (including, without limitation,
      all salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. In no event shall the Company be
      responsible for any broker or similar commissions or any legal fees or other
      costs of the Holders.

     

    5.  Indemnification

     

    (a)  Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, each Person who
      controls any such Holder (within the meaning of Section 15 of the Securities
      Act
      or Section 20 of the Exchange Act) and the officers, directors, agents and
      employees of each such controlling Person, to the fullest extent permitted
      by
      applicable law, from and against any and all losses, claims, damages,
      liabilities, costs (including, without limitation, reasonable attorneys’ fees)
      and expenses (collectively, “Losses”),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in a Registration Statement, any Prospectus or
      any
      form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in light of the circumstances under which they were made)
      not misleading, except to the extent, but only to the extent, that (i) such
      untrue statements or omissions are based upon information regarding such Holder
      furnished in writing to the Company by such Holder expressly for use therein,
      or
      to the extent that such information relates to such Holder or such Holder’s
      proposed method of distribution of Registrable Securities and was reviewed
      and
      approved by such Holder for use in the applicable Registration Statement, such
      Prospectus or such form of Prospectus or in any amendment or supplement thereto
      (it being understood that the Holder has approved Annex A hereto for this
      purpose), (ii) in the case of an occurrence of an event of the type specified
      in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder that the Prospectus is
      outdated or defective and prior to the receipt by such Holder of the Advice
      contemplated in Section 6(d) or (iii) in the case that the Holder failed to
      deliver a prospectus furnished by the Company that corrected the misstatements
      or omission. The Company shall notify the Holders promptly of the institution,
      threat or assertion of any Proceeding of which the Company is aware in
      connection with the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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    (b)  Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, to the extent arising out of or based
      solely upon: (x) such Holder’s failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue or alleged untrue statement
      of a material fact contained in any Registration Statement, any Prospectus,
      or
      any form of prospectus, or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading (i) to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished in writing by such Holder to the Company specifically for inclusion
      in
      such Registration Statement or such Prospectus or (ii) to the extent that (1)
      such untrue statements or omissions are based upon information regarding such
      Holder furnished in writing to the Company by such Holder for use therein,
      or to
      the extent that such information relates to such Holder or such Holder’s
      proposed method of distribution of Registrable Securities and was reviewed
      and
      approved by such Holder for use in the applicable Registration Statement (it
      being understood that the Holder has approved Annex A hereto for this purpose),
      such Prospectus or such form of Prospectus or in any amendment or supplement
      thereto or (2) in the case of an occurrence of an event of the type specified
      in
      Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
      Prospectus after the Company has notified such Holder that the Prospectus is
      outdated or defective and prior to the receipt by such Holder of the Advice
      contemplated in Section 6(d). In no event shall the liability of any selling
      Holder hereunder be greater in amount than the dollar amount of the net proceeds
      received by such Holder upon the sale of the Registrable Securities giving
      rise
      to such indemnification obligation.

     

    (c)  Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have prejudiced the Indemnifying Party.

     

    
      
        
        

      

      
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    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall reasonably believe
      that a material conflict of interest is likely to exist if the same counsel
      were
      to represent such Indemnified Party and the Indemnifying Party (in which case,
      if such Indemnified Party notifies the Indemnifying Party in writing that it
      elects to employ separate counsel at the expense of the Indemnifying Party,
      the
      Indemnifying Party shall not have the right to assume the defense thereof and
      the reasonable fees and expenses of one separate counsel shall be at the expense
      of the Indemnifying Party). The Indemnifying Party shall not be liable for
      any
      settlement of any such Proceeding effected without its written consent. No
      Indemnifying Party shall, without the prior written consent of the Indemnified
      Party, effect any settlement of any pending Proceeding in respect of which
      any
      Indemnified Party is a party, unless such settlement includes an unconditional
      release of such Indemnified Party from all liability on claims that are the
      subject matter of such Proceeding.

     

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided,
      that
      the Indemnified Party shall promptly reimburse the Indemnifying Party for that
      portion of such fees and expenses applicable to such actions for which such
      Indemnified Party is not entitled to indemnification hereunder, determined
      based
      upon the relative faults of the parties.

     

    (d)  Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party (by reason of public policy or otherwise), then each
      Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of such Losses, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in this Agreement, any reasonable attorneys’ or other reasonable fees or
      expenses incurred by such party in connection with any Proceeding to the extent
      such party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

     

    
      
        
        

      

      
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    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission, except in the case of fraud
      by
      such Holder.

     

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

     

    6.  Miscellaneous

     

    (a)  Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

     

    (b)  Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to each Registration Statement.

     

    (c)  Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under the applicable Registration Statement until
      such Holder’s receipt of the copies of the supplemented Prospectus and/or
      amended Registration Statement or until it is advised in writing (the
“Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company will use its reasonable best efforts to
      ensure that the use of the Prospectus may be resumed as promptly as it
      practicable. 

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (d)  Holder
      to Furnish Information.
      If
      requested by the Company in connection with the disclosure requirements in
      a
      Registration Statement (including a periodic or current report that will be
      incorporated by reference into a Registration Statement), each selling Holder
      shall furnish to the Company a certified statement providing such information
      as
      has been requested by the SEC or that the Company feels is necessary to
      disclose, including without limitation information as to the number of shares
      of
      Common Stock beneficially owned by such Holder and the person thereof that
      has
      voting and dispositive control over such shares (subject to Swiss law).
      Notwithstanding anything herein to the contrary, if a Holder has not provided
      the Company with information required by the Commission to be included in the
      applicable Registration Statement, notwithstanding the Company’s reasonable best
      efforts to obtain such information from the Holder, the Company may exclude
      such
      Holder from such Registration Statement. If a Holder is excluded from the
      initial filing of a Registration Statement, upon receipt of the required
      information, the Company shall continue to use commercially reasonable efforts
      to include such Holder’s Registrable Securities on the applicable Registration
      Statement if the same has not become effective (provided,
      however,
      that
      the effectiveness of such Registration Statement shall not be delayed for this
      purpose.) 

     

    (e)  Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and each Holder of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of Holders and that does not directly or indirectly affect the rights
      of
      other Holders may be given by Holders of all of the Registrable Securities
      to
      which such waiver or consent relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding
      sentence.

     

    (f)  Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Investment
      Agreement.

     

    (g)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of all of the Holders of the then-outstanding
      Registrable Securities. Each Holder may assign their respective rights hereunder
      in the manner and to the Persons as permitted under the Investment
      Agreement.

     

    (h)  Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

    (i)  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be determined with the provisions of the Investment
      Agreement.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (j)  Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

     

    (k)  Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    (l)  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (m)  Independent
      Nature of Holders’ Obligations and Rights.
      The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be responsible
      in
      any way for the performance of the obligations of any other Holder hereunder.
      Nothing contained herein or in any other agreement or document delivered at
      any
      closing, and no action taken by any Holder pursuant hereto or thereto, shall
      be
      deemed to constitute the Holders as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holders
      are in any way acting in concert with respect to such obligations or the
      transactions contemplated by this Agreement. Each Holder shall be entitled
      to
      protect and enforce its rights, including without limitation the rights arising
      out of this Agreement, and it shall not be necessary for any other Holder to
      be
      joined as an additional party in any proceeding for such purpose.

     

    *************************

    

 

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

     

    
      
        	 	 	 
	 	BARNABUS
                ENERGY, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:
                  David Saltman

                Title:
                  President

              
	 	 

      

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    

    

    
 

    ____________________________________________________________

    
      	 	
              Name:

            	
              Bank
                Sal. Oppenheim jr. & Cie.

              (Schweiz)
                AG on behalf of fully

              managed
                accounts

            

    

    

    Address: 
Postfach
      4439

                                      
      8022 Zurich

    

    

    

    Fax
      number: +41442142271

    Amount
      of
      investment: $1,500,000

    Number
      of
      Warrants: 672,646

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      A

    

    Plan
      of Distribution

     

    The
      Selling Stockholders (the “Selling
      Stockholders”)
      of the
      common stock (“Common
      Stock”)
      of
      Barnabus Energy, Inc., a Nevada corporation (the “Company”)
      and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of Common Stock on any stock exchange,
      market or trading facility on which the shares are traded or in private
      transactions. These sales may be at fixed or negotiated prices. The Selling
      Stockholders may use any one or more of the following methods when selling
      shares:

     

    
      	·  	
              ordinary
                brokerage transactions and transactions in which the broker-dealer
                solicits purchasers;

            

    

     

    
      	·  	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

     

    
      	·  	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

     

    
      	·  	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

     

    
      	·  	
              privately
                negotiated transactions;

            

    

     

    
      	·  	
              settlement
                of short sales entered into after the date of this
                prospectus;

            

    

     

    
      	·  	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

     

    
      	·  	
              a
                combination of any such methods of
                sale;

            

    

     

    
      	·  	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or otherwise;
                or

            

    

     

    
      	·  	
              any
                other method permitted pursuant to applicable
                law.

            

    

     

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities
      Act”),
      if
      available, rather than under this prospectus.

     

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated. Each
      Selling Stockholder does not expect these commissions and discounts relating
      to
      its sales of shares to exceed what is customary in the types of transactions
      involved.

     

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    In
      connection with the sale of the Common Stock or
      interests therein, the Selling Stockholders may enter into hedging transactions
      with broker-dealers or other financial institutions, which may in turn engage
      in
      short sales of the Common Stock in the course of hedging the positions they
      assume. The Selling Stockholders may also sell shares of the Common Stock short
      and deliver these securities to close out their short positions, or loan or
      pledge the Common Stock to broker-dealers that in turn may sell these
      securities. The Selling Stockholders may also enter into option or other
      transactions with broker-dealers or other financial institutions or the creation
      of one or more derivative securities which require the delivery to such
      broker-dealer or other financial institution of shares offered by this
      prospectus, which shares such broker-dealer or other financial institution
      may
      resell pursuant to this prospectus (as supplemented or amended to reflect such
      transaction).

     

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Each Selling Stockholder has informed the
      Company that it does not have any agreement or understanding, directly or
      indirectly, with any person to distribute the Common Stock.

     

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares. The Company has agreed to indemnify
      the Selling Stockholders against certain losses, claims, damages and
      liabilities, including liabilities under the Securities Act. 

     

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act. In addition, any securities covered by this prospectus
      which qualify for sale pursuant to Rule 144 under the Securities Act may be
      sold
      under Rule 144 rather than under this prospectus. Each Selling Stockholder
      has
      advised us that they have not entered into any agreements, understandings or
      arrangements with any underwriter or broker-dealer regarding the sale of the
      resale shares. There is no underwriter or coordinating broker acting in
      connection with the proposed sale of the resale shares by the Selling
      Stockholders.

     

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(e) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to the prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect. The resale shares will be sold only through
      registered or licensed brokers or dealers if required under applicable state
      securities laws. In addition, in certain states, the resale shares may not
      be
      sold unless they have been registered or qualified for sale in the applicable
      state or an exemption from the registration or qualification requirement is
      available and is complied with.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to the Common Stock for a period of two business
      days prior to the commencement of the distribution. In addition, the Selling
      Stockholders will be subject to applicable provisions of the Exchange Act and
      the rules and regulations thereunder, including Regulation M, which may limit
      the timing of purchases and sales of shares of the Common Stock by the Selling
      Stockholders or any other person. We will make copies of this prospectus
      available to the Selling Stockholders and have informed them of the need to
      deliver a copy of this prospectus to each purchaser at or prior to the time
      of
      the sale.

     

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    Annex
      B

     

     

    Selling
      Securityholder Notice and Questionnaire

     

    The
      undersigned beneficial owner of common stock, par value $0.001 per share (the
      “Common
      Stock”),
      of
      Barnabus
      Energy, Inc.,
      a
      Nevada corporation (the “Company”),
      (the
“Registrable
      Securities”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      registration statement (the “Registration
      Statement”)
      for
      the registration and resale under Rule 415 of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities, in accordance with the terms of the Registration
      Rights Agreement (the “Registration
      Rights Agreement”),
      among
      the Company and the Purchaser named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Registration Rights Agreement.

     

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

     

    NOTICE

     

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

     

    
      QUESTIONNAIRE

       

      1. Name.

       

      
        	 	
                (a)

              	
                Full
                  Legal Name of Selling
                  Securityholder

              

      

       

      
        	
                
                  

                

              

      

      
        	 	
                (b)

              	
                Full
                  Legal Name of Registered Holder (if not the same as (a) above)
                  through
                  which Registrable Securities Listed in Item 3 below are
                  held:

              

      

       

      
        	
                
                  

                

              

      

      
        	 	
                (c)

              	
                Full
                  Legal Name of Natural Control Person (which means a natural person
                  who
                  directly you indirectly alone or with others has power to vote
                  or dispose
                  of the securities covered by the
                  questionnaire):

              

      

       

      
        	
                
                  

                

              

      

       

      2.
        Address for Notices to Selling Securityholder:

      
         

        
          	
                  
                    

                  

                  
                    

                  

                  
                    

                  

                  Telephone:
                    ___________________________________________________________________________________________________________________________________________________________

                  
                    Fax:
                      _________________________________________________________________________________________________________________________________________________________________

                    
                      Contact
                        Person:
                        ________________________________________________________________________________________________________________________________________________________

                    

                  

                

        

         

      

      3.
        Beneficial Ownership of Registrable Securities:

       

      
        	 	
                (a)

              	
                Type
                  and Number of Registrable Securities beneficially
                  owned:

              

      

       

      
        
           

          
            	
                    
                      

                    

                    
                      

                    

                    
                      

                    

                  

          

        

      

    

     

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    
       

      4.
        Broker-Dealer Status:

       

      
        	 	
                (a)

              	
                Are
                  you a broker-dealer?

              

      

       

      Yes
o
No
o

       

      
        	 	
                Note:

              	
                If
                  yes, the Commission’s staff has indicated that you should be identified as
                  an underwriter in the Registration
                  Statement.

              

      

       

      
        	 	
                (b)

              	
                Are
                  you an affiliate of a
                  broker-dealer?

              

      

       

      Yes
o
No
o

       

      
        	 	
                (c)

              	
                If
                  you are an affiliate of a broker-dealer, do you certify that you
                  bought
                  the Registrable Securities in the ordinary course of business,
                  and at the
                  time of the purchase of the Registrable Securities to be resold,
                  you had
                  no agreements or understandings, directly or indirectly, with any
                  person
                  to distribute the Registrable
                  Securities?

              

      

       

      Yes
o
No
o

       

      
        	 	
                Note:

              	
                If
                  no, the Commission’s staff has indicated that you should be identified as
                  an underwriter in the Registration
                  Statement.

              

      

       

      5.
        Beneficial Ownership of Other Securities of the Company Owned by the Selling
        Securityholder.

       

      Except
        as set forth below in this Item 5, the undersigned is not the beneficial
        or
        registered owner of any securities of the Company other than the Registrable
        Securities listed above in Item 3.

       

      
        	 	
                (a)

              	
                Type
                  and Amount of Other Securities beneficially owned by the Selling
                  Securityholder:

              

      

       

      
        	
                
                  

                

                
                  

                

                 

              

      

    

     

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    
 

    6.
      Relationships with the Company:

     

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

     

    State
      any
      exceptions here:

    
       

      
        	
                
                  

                

                
                  

                

                 

              

      

       

    

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

     

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus. The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus.

     

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

     

    
       

      
        	 	 	 
	Dated: ___________________________________	Beneficial
                Owner:
                ___________________________________
	 
 	 
 	 
 
	 	By:  	______________________________________________
	 	Name:
	 	
                Title:

              

      

       

    

     

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

    

    

    D.
      Roger
      Glenn, Esq.

    Edwards
      Angell Palmer & Dodge LLP

    750
      Lexington Avenue

    New
      York,
      New York 10022

    (212)
      912-2753

     

    
      
        
        

      

      
        -19-Unassociated Document

    INVESTMENT
      AGREEMENT

     

    THIS
      INVESTMENT AGREEMENT (this “Agreement”),
      dated
      as of February 14, 2006, is made by and among BARNABUS
      ENERGY, INC., a
      Nevada
      corporation (the “Company”),
      and
      the purchasers listed on the signature page hereto (each a “Purchaser” and
      collectively the “Purchasers”).

     

    RECITALS

     

    WHEREAS,
      on the terms and subject to the conditions set forth in this Agreement, the
      Company desires to issue and sell the Purchased Securities to the Purchasers;
      and

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement, the Purchasers
      wish to acquire the Purchased Securities;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants contained
      in this Agreement, the parties agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    For
      all
      purposes of this Agreement the following terms have the meanings set forth
      in
      this Article I.

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or other day on which commercial banks
      in
      the State of California are authorized or required by law or executive order
      to
      close.

     

    “Charter”
means
      the articles or certificate of incorporation or formation, statute,
      constitution, joint venture or partnership agreement, limited liability company
      agreement or articles or other organizational document of any Person other
      than
      an individual, each as from time to time amended or modified.

     

    “Closing”
has
      the
      meaning specified in Section 2.2.

     

    “Closing
      Date”
has
      the
      meaning specified in Section 2.2.

     

    “Common
      Stock”
means
      the common stock of the Company, par value $0.001 per share, and any securities
      into which such common stock may hereafter be converted or reclassified.

     

    “Company”
has
      the
      meaning specified in the introduction to this Agreement.

     

    “Debentures”
means
      an aggregate of $5 million in principal amount of 0% 30-month subordinated
      debentures in substantially the form set forth on Exhibit A-I issued to the
      respective Purchasers in the respective principal amounts set forth opposite
      each such Purchaser's name on the signature page hereto.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Person”
means
      an individual, partnership, corporation, limited liability company, association,
      trust, joint venture, unincorporated organization or other entity and any
      government, governmental department or agency or political subdivision
      thereof.

     

    “Purchased
      Securities”
means
      the Debentures and the Warrants.

     

    “Purchaser”
and
      “Purchasers”
has
      the
      meaning specified in introduction to this Agreement.

     

    “Registration
      Rights Agreement”
means
      that certain Registration Rights Agreement of even date herewith by and between
      the Company and the Purchasers, substantially in the form set forth on
Exhibit A-III.

     

    “Securities
      Act”
means
      the United States Securities Act of 1933, as amended.

     

    “Warrants”
means
      warrants to purchase shares of Common Stock in substantially the form set forth
      on Exhibit A-II issued to the respective Purchasers in the respective l amounts
      set forth opposite each such Purchaser's name on the signature page
      hereto.

     

    ARTICLE
      II

     

    SALE
      AND PURCHASE OF PURCHASED SECURITIES

     

    SECTION
      2.1.
      Investment
      Transactions.
      

     

    (a)
      Sale
      and Purchase of the Purchased Securities.
      For
      value received, and on the terms and subject to all of the conditions set forth
      herein, at the Closing, the Company shall issue and sell to the Purchasers,
      and
      the Purchasers shall purchase, the Purchased Securities in exchange for a
      payment to the Company at the Closing of FIVE MILLION DOLLARS ($5,000,000.00),
      less fees payable under Section 2.3..

     

    (b)
      Deliveries.
      At the
      Closing, the Company shall deliver to the Purchasers the following:

     

    (i) the
      Debentures, duly executed by the Company; and

     

    (ii) the
      Warrants duly executed by the Company;

     

    and
      the
      Purchasers shall deliver to the Company the aggregate sum of FIVE MILLION
      DOLLARS ($5,000,000.00) less fees payable under Section 2.3 by wire transfer
      in
      immediately available funds to an account designated by the Company to the
      Purchasers.

     

    SECTION
      2.2.
      Closing.
      The
      closing of the purchase and sale of Purchased Securities (the “Closing”)
      hereunder shall take place remotely by means of mail, facsimile and electronic
      mail (with originally executed documents to be exchanged immediately
      thereafter). The Closing shall be held on February 8, 2006 or on such other
      date
      as may be agreed to by the Purchasers and the Company (the “Closing
      Date”).
      At
      the Closing, (i) the Company shall issue, sell and deliver to each
      Purchaser the Purchased Securities to be issued to such Purchaser at such
      Closing by executing one or more Debentures and Warrants that in the aggregate
      represent such Purchased Securities, a copy of this Agreement and of the
      Registration Rights Agreement, sending a copy of the executed signature page
      of
      a copy of such Purchased Securities, this Agreement and the Registration Rights
      Agreement to each such Purchaser by facsimile at the number provided by such
      Purchaser for such purpose and placing executed copies of such executed
      Purchased Securities, this Agreement and the Registration Rights Agreement
      in
      the hands of a reputable private delivery service for delivery to such
      Purchaser, and (ii) each such Purchaser shall pay the aggregate purchase
      price therefor by instructing counsel to wire transfer immediately available
      funds to an account designated in writing by the Company, shall execute the
      signature page to this Agreement and the Registration Rights Agreement and
      send
      the same by facsimile to the Company at (858) 794-8811 in the United States
      of
      America and shall place such executed signature pages in the hands of a
      reputable private delivery service for delivery to the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      2.3. Attorneys Fees. The Purchasers and the Company acknowledge that the
      Purchasers' counsel will deduct, prior to forwarding the $5,000,000 to the
      Company pursuant to Section 2.1(b), outstanding fees to a maximum of
      $25,000.

    

    

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    In
      order
      to induce the Purchasers to enter into this Agreement and to induce the
      Purchasers to purchase the Purchased Securities, the Company hereby represents
      and warrants, as of the date hereof and as each Closing Date, that:

     

    SECTION
      3.1.
      Organization
      and Good Standing.
      The
      Company is duly organized, validly existing and in good standing in its
      jurisdiction of organization and is duly qualified and authorized to do business
      in all other jurisdictions in which the nature of its business or property
      makes
      such qualification necessary. The Company has the power to own its properties
      and to carry on its business as now conducted and as proposed to be
      conducted.

     

    SECTION
      3.2.
      Authorization.
      The
      execution, delivery and performance by the Company of this Agreement, the
      Registration Rights Agreement, and the issuance and sale by the Company of
      the
      Purchased Securities hereunder: (a) are within the Company’s power and
      authority; (b) have been duly authorized by all necessary corporate and
      other proceedings; (c) has been duly executed and delivered by an
      authorized officer of the Company; and (d) do not and will not result in
      the creation of any lien upon any of the Company’s property or conflict with or
      result in any breach of any provision of the Company’s Charter, or any law,
      regulation, order, judgment, writ, injunction, license, permit, agreement or
      instrument to which the Company is subject.

     

    SECTION
      3.3.
      Enforceability.
      The
      execution and delivery by the Company of this Agreement, the Registration Rights
      Agreement, and the issuance and sale by the Company of the Purchased Securities
      hereunder, will result in legally binding obligations of the Company,
      enforceable against it in accordance with the respective terms and provisions
      hereof and thereof except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, and other laws of general application affecting
      enforcement of creditors’ rights generally, (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies, and (iii) to the extent the indemnification provisions
      contained in this Agreement and/or in the Registration Rights Agreement may
      be
      limited by applicable federal or state securities laws.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      3.4.
      SEC
      Reports.
      The
      Company has filed all reports required to be filed by it under the Securities
      Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
      for the year preceding the date hereof (the foregoing reports, including the
      exhibits thereto, being collectively referred to herein as the “SEC
      Reports”).
      As of
      their respective dates, the SEC Reports complied in all material respects with
      the requirements of the Securities Act and the Exchange Act and the rules and
      regulations of the U.S. Securities Exchange Commission promulgated thereunder,
      and none of the SEC Reports, when filed, contained any untrue statement of
      a
      material fact or omitted to state a material fact required to be stated therein
      or necessary in order to make the statements therein, in light of the
      circumstances under which they were made, not misleading.

     

    ARTICLE
      IV

     

    REPRESENTATIONS
      OF THE PURCHASERS 

     

    SECTION
      4.1.
      Investment
      Intent.
      Each
      Purchaser hereby represents, warrants and covenants to the Company that such
      Purchaser will acquire the Purchased Securities to be purchased by the Purchaser
      hereunder (and the securities received upon exercise or conversion thereof)
      for
      investment only for the Purchaser’s own account, not as a nominee or agent and
      not with a view to the sale or distribution of any part thereof. The Purchaser
      hereby agrees that it will not transfer the Purchased Securities or any
      securities received upon conversion or exercise thereof in a manner that will
      violate the Securities Act.

     

    SECTION
      4.2.
      Authorization.
      Each
      Purchaser hereby represents and warrants to the Company that each of this
      Agreement and the Registration Rights Agreement has been executed by a duly
      authorized Person on its behalf; and its execution, delivery and performance
      hereof have been duly authorized by all appropriate action and do not and will
      not conflict with or result in any breach of any provision of any law,
      regulation, order, judgment, writ, injunction, license, permit, agreement or
      instrument to which it is subject. 

     

    SECTION
      4.3.
      Enforceability.
      Each
      Purchaser hereby represents and warrants that the execution and delivery by
      it
      of this Agreement and the Registration Rights Agreement will result in legally
      binding obligations of it enforceable against it in accordance with the
      respective terms and provisions hereof and thereof except (i) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, and other laws
      of
      general application affecting enforcement of creditors’ rights generally, (ii)
      as limited by laws relating to the availability of specific performance,
      injunctive relief or other equitable remedies, and (iii) to the extent the
      indemnification provisions contained in the Registration Rights Agreement may
      be
      limited by applicable federal or state securities laws.

     

    SECTION
      4.4.
      Exemption.
      Each
      Purchaser understands that the Purchased Securities and any securities received
      upon exercise or conversion of the Purchased Securities are not registered
      under
      the Securities Act on the grounds that the sale provided for in this Agreement
      and the issuance of securities hereunder is exempt from registration under
      the
      Securities Act pursuant to section 4(2) thereof and Regulation S thereunder,
      and
      that the Company’s reliance on such exemptions is predicated on the Purchaser’s
      representations set forth herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      4.5.
      Experience.
      Each
      Purchaser represents that it has substantial experience in evaluating and
      investing in private placement transactions of securities in companies similar
      to the Company, is familiar with the risks associated with the business and
      operations of the Company, has such knowledge and experience in financial and
      business matters as to be capable of evaluating the merits and risks of its
      investment, and has the ability to bear the economic risks of its investment
      for
      an indefinite period of time, including the risk of a complete loss of the
      Purchaser’s investment in the Purchased Securities. The Purchaser represents
      that it has had, during the course of the transaction and prior to the purchase
      of the Purchased Securities, the opportunity to request information from and
      ask
      questions of the Company and its officers, employees and agents, concerning
      the
      Company, its assets, business and operations and to receive information and
      answers to such requests and questions.

     

    SECTION
      4.6.
      Restricted
      Securities.
      The
      Purchaser understands that the Purchased Securities and any securities received
      upon exercise or conversion thereof are “restricted securities” under the U.S.
      federal securities laws inasmuch as they are being acquired from the Company
      in
      a transaction not involving a public offering and that under such laws and
      applicable regulations the Purchased Securities and any securities received
      upon
      exercise or conversion thereof may be resold without registration under the
      Securities Act only in certain limited circumstances. The Purchaser acknowledges
      that the Purchased Securities and any securities received upon exercise or
      conversion thereof must be held indefinitely unless subsequently registered
      under the Securities Act and under applicable state securities laws or an
      exemption from such registration is available. The Purchaser acknowledges that
      each certificate representing the Purchased Securities or any securities
      issuable upon exercise or conversion thereof shall bear a legend substantially
      in the following form:

     

    “THE
      SECURITY REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
      AND
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY
      NOT
      BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION IN EFFECT UNDER
      SUCH
      ACT UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL OR OTHER EVIDENCE
      REASONABLY ACCEPTABLE TO IT DEMONSTRATING THAT SUCH SALE OR TRANSFER IS EXEMPT
      FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT OR UNLESS
      SOLD PURSUANT TO RULE 144 OF SUCH ACT.

     

    The
      foregoing legend shall be removed from the certificates representing any
      Purchased Securities, at the request of the holder thereof, at such time as
      (i) they become eligible for resale pursuant to an effective registration
      statement or Rule 144(k) under the Securities Act or (ii) the Company shall
      have received an opinion of counsel or other evidence reasonably acceptable
      to
      the Company to the effect that any transfer of the Purchased Securities
      represented by such certificates or the securities issued upon conversion or
      exercise thereof will not violate the Securities Act and applicable state
      securities laws.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      4.7.
      Further
      Limitations on Disposition.
      Without
      in any way limiting the representations set forth above, Purchaser will not
      to
      make any disposition of all or any portion of the Purchaser’s Purchased
      Securities and any securities received upon exercise or conversion thereof
      unless and until one of the following conditions have been
      satisfied:

     

    (i) There
      is
      then in effect a Registration Statement under the Securities Act covering the
      shares intended to be disposed of, and such disposition is made in accordance
      with such Registration Statement; or

     

    (ii) The
      Purchaser shall have notified the Company of the proposed disposition and shall
      have furnished the Company with a reasonably detailed statement of the
      circumstances surrounding the proposed disposition, and if reasonably requested
      by the Company, the Purchaser shall have furnished the Company with an opinion
      of counsel, reasonably satisfactory to the Company to the effect that such
      disposition will not require registration under the Securities Act, or the
      Purchaser shall have otherwise sold such shares pursuant to Rule 144 under
      the Securities Act.

     

    SECTION
      4.8.
      Accredited
      Investor.
      Each
      Purchaser hereby represents and warrants that: 

     

    (i)
      such
      Purchaser is an accredited investor as defined in Rule 501(a) of Regulation
      D
      promulgated under the Securities Act or 

     

    (ii)
      (A)
      such Purchaser (if a natural person) is NOT a resident of the United States
      of
      America or any State of the United States, or territory or possession of the
      United States, or the District of Columbia (collectively, the "USA")
      and is
      NOT purchasing or considering purchasing the Securities for the account or
      benefit of a resident of the USA, or (B) such Purchaser (if not a natural
      person) is NOT organized or incorporated under the laws of the United States
      of
      America or any State of the United States, or territory or possession of the
      United States, or the District of Columbia (collectively, the "USA"),
      and
      is NOT organized by a natural person resident in the USA, or by a partnership
      or
      corporation organized under the laws of the USA, or by any estate governed
      under
      USA law of which any executor or administrator is a resident or organized under
      the laws of the USA, or by any trust of which any trustee is a resident or
      organized under the laws of the USA. 

     

    SECTION
      4.9.
      Brokers
      or Finders.
      The
      Purchaser hereby represents that it has not taken any action that would result
      in the Company incurring any liability for brokerage or finders’ fees or agents’
commissions for any similar charges in connection with the transactions
      contemplated by this Agreement.

     

    SECTION
      4.10.
      Purchase
      for Own Account.
      The
      Purchased Securities acquired by each Purchaser, and any securities acquired
      upon exercise or conversion of the same, will be acquired by such Purchaser
      for
      such Purchaser's own account, not as a nominee or agent, and not with a view
      to
      or in connection with the sale or distribution of any part thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
      V

     

    CONDITIONS
      TO THE PURCHASER’S OBLIGATIONS TO PURCHASE THE INITIAL OR REQUESTED
      SHARES

     

    The
      Purchaser’s obligation to purchase Purchased Securities pursuant to Section 2.1
      of this Agreement is subject to compliance by the Company with its agreements
      and representations herein contained, and to the satisfaction, on or prior
      to
      the applicable Closing Date, of the following conditions (except to the extent
      any such conditions may be waived in writing by a particular
      Purchaser):

     

    SECTION
      5.1.
      Representations
      and Warranties.
      The
      Company’s representations and warranties contained in Article III hereof shall
      be true and correct in all material respects on and as of the Closing Date
      with
      the same force and effect as though made on and as of the Closing Date and
      the
      Company shall have performed and complied with all conditions and agreements
      required to be performed or complied with by each of them prior to the
      Closing.

     

    SECTION
      5.2.
      Legality;
      Governmental and Other Authorizations.
      The
      purchase of the Purchased Securities to be acquired on such Closing Date by
      the
      Purchasers shall not be prohibited by any law or governmental order or
      regulation, and shall not subject the Purchasers to any penalty, special tax
      or
      other onerous condition. All necessary consents, approvals, licenses, permits,
      orders and authorizations of, or registrations, declarations and filings with,
      any governmental or administrative agency or of or with any other Person, with
      respect to any of the transactions contemplated by this Agreement shall have
      been duly obtained or made and shall be in full force and effect other than
      any
      applicable state securities law or blue sky filings. 

     

    ARTICLE
      VI

     

    CONDITIONS
      TO THE COMPANY’S OBLIGATIONS

     

    The
      Company’s obligation to sell and issue the Purchased Securities pursuant to this
      Agreement is subject to compliance by the Purchaser with the agreements herein
      contained, and to the satisfaction on or prior to the applicable Closing Date,
      of the following conditions:

     

    SECTION
      6.1.
      Representations.
      The
      representations made by the Purchasers in Article IV hereof shall be true and
      correct in all material respects on and as of the Closing Date with the same
      force and effect as though made on and as of the Closing Date.

     

    SECTION
      6.2.
      Legality;
      Governmental and Other Authorizations.
      The
      issuance and sale of the Purchased Securities by the Company at such Closing
      shall not be prohibited by any law or governmental order or regulation, and
      shall not subject the Company to any penalty, special tax, or other onerous
      condition. All necessary consents, approvals, licenses, permits, orders and
      authorizations of, or registrations, declarations and filings with, any
      governmental or administrative agency or of or with any other Person, with
      respect to any of the transactions contemplated by this Agreement shall have
      been duly obtained or made and shall be in full force and effect other than
      any
      applicable state securities law or blue sky filings.

     

    ARTICLE
      VII

     

    MISCELLANEOUS

     

    SECTION
      7.1.
      Notices.
      All
      demands, notices, requests, consents and other communications required or
      permitted under this Agreement shall be in writing and shall be personally
      delivered or sent by facsimile machine (with a confirmation copy sent by one
      of
      the other methods authorized in this Section), commercial (including FedEx)
      or
      U.S. Postal Service overnight delivery service, or, deposited with the U.S.
      Postal Service mailed first class, registered or certified mail, postage
      prepaid, as set forth below:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    If
      to the
      Company, addressed to:

     

    David
      Saltman

    President
      and CEO

    Barnabus
      Energy, Inc.

    514
      Via
      De La Valle

    Suite
      200

    Solana
      Beach, CA 92075

    Fax: (858)
      794-8811

    

    with
      a
      copy to:

    

    Edwards
      Angell Palmer & Dodge LLP

    750
      Lexington Avenue

    New
      York,
      NY 10022

    Attention:  D.
      Roger Glenn

    Fax: (212) 308-4844

    

    If
      to
      Purchasers at the addresses set forth on the signature page hereto.

     

    Notices
      shall be deemed given upon the earlier to occur of (i) receipt by the party
      to
      whom such notice is directed; (ii) if sent by facsimile machine, on the day
      (other than a Saturday, Sunday or legal holiday in the jurisdiction to which
      such notice is directed) such notice is sent if sent (as evidenced by the
      facsimile confirmed receipt) prior to 5:00 p.m. Eastern Time and, if sent after
      5:00 p.m. Eastern Time, on the day (other than a Saturday, Sunday or legal
      holiday in the jurisdiction to which such notice is directed) after which such
      notice is sent; (iii) on the first business day (other than a Saturday, Sunday
      or legal holiday in the jurisdiction to which such notice is directed) following
      the day the same is deposited with the commercial carrier if sent by commercial
      overnight delivery service; or (iv) the fifth day (other than a Saturday, Sunday
      or legal holiday in the jurisdiction to which such notice is directed) following
      deposit thereof with the U.S. Postal Service as aforesaid. Each party, by notice
      duly given in accordance therewith may specify a different address for the
      giving of any notice hereunder.

     

    SECTION
      7.2.
      Amendments
      and Waivers, Joinder.
      Except
      as otherwise expressly provided herein, any term of this Agreement may be
      amended only with the written consent of the Company and the Purchaser. Any
      amendment or waiver effected in accordance with this Section shall be binding
      upon the Company and each holder of any Purchased Securities sold pursuant
      to
      this Agreement. 

     

    SECTION
      7.3.
      Waiver
      of Jury Trial.
      EACH
      OF THE PARTIES HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY
      IN
      ANY ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT, ANY
      OF
      THE RELATED AGREEMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR
      THEREBY.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      7.4.
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which will
      be
      deemed an original and all of which will constitute one and the same
      agreement.

     

    SECTION
      7.5.
      Entire
      Agreement.
      This
      Agreement and the other writings referred to herein or delivered pursuant hereto
      which form a part hereof contain the entire agreement and understanding of
      the
      parties hereto with respect to the subject matter hereof. This Agreement
      supersedes all prior and contemporaneous discussions, agreements and
      understandings related to said subject matter.

     

    SECTION
      7.6.
      Survival
      of Representations and Warranties, etc.
      All
      representations and warranties contained herein shall survive until 12 months
      from the date hereof.

     

    SECTION
      7.7.
      Assignment.
      All of
      the terms and provisions of this Agreement shall be binding upon and inure
      to
      the benefit of and be enforceable by the respective successors and assigns
      of
      the parties hereto, whether so expressed or not, and, in particular, shall
      inure
      to the benefit of and be enforceable by the holder or holders at the time of
      any
      of the Purchased Securities. 

     

    SECTION
      7.8.
      Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of Nevada, without regard
      to the conflicts of law provisions thereunder.

     

    SECTION
      7.9.
      Fees
      and Expenses of Counsel.
      At the
      Closing, the Company shall pay up to $25,000 of bona fide expenses, including
      legal fees, incurred by the Purchasers upon delivery by the Purchasers to the
      Company of appropriate and customary documentation thereof.

     

    [remainder
      of page intentionally left blank]

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF,
      this
      Agreement is executed and delivered as of the date first written above by the
      undersigned who hereby agrees to be bound by the terms and provisions set forth
      in the Agreement.

     

    
      	 	 	 
	 	BARNABUS
              ENERGY, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
              David Saltman
	 	Title:
              President and CEO 

    

     

     

     

    
      	 	 	 
	 	PURCHASERS
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
              Nadelson Internacional S.A.
	 	
              Address:  Karyna
                Condominium

                     San
                Jose, Costa
                Rica

               

               

               

              
                Fax
                  number: 

                Amount
                  of investment: $750,000

                Number
                  of Warrants: 336,323

              

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A-I

    

    

    Form
      of
      Debenture

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A-II

    

    Form
      of
      Warrant

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    EXHIBIT
      A-III

    

    Form
      of
      Registration Rights Agreement

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