Document:

Exhibit 10.16

EXECUTION COPY

REGISTRATION RIGHTS AGREEMENT

          REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of March 7, 2011, by
and between GREEN EARTH TECHNOLOGIES,
INC., a Delaware
corporation, (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (the
“Buyer”). Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set
forth in the Purchase Agreement by and between the parties hereto, dated as of
the date hereof (as amended, restated, supplemented or otherwise modified from
time to time, the “Purchase Agreement”).

WHEREAS:

          The
Company has agreed, upon the terms and subject to the conditions of the
Purchase Agreement, to issue to the Buyer up to Fifteen Million Dollars
($15,000,000) of Purchase Shares
and to induce the Buyer to enter into the Purchase Agreement, the Company has
agreed to provide certain registration rights under the Securities Act of 1933,
as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the “Securities Act”),
and applicable state securities laws.

          NOW,
THEREFORE, in
consideration of the promises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Buyer hereby agree as follows:

          1.         DEFINITIONS.

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

                      a.          “Investor” means the Buyer.

                      b.          “Person” means any person or entity
including but not limited to any corporation, a limited liability company, an
association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

                      c.          “Register,” “registered,” and “registration”
refer to a registration effected by preparing and filing one or more registration
statements of the Company in compliance with the Securities Act and pursuant to
Rule 415 under the Securities Act or any successor rule providing for offering
securities on a continuous basis (“Rule 415”),
and the declaration or ordering of effectiveness of such registration
statement(s) by the United States Securities and Exchange Commission (the “SEC”).

                      d.          “Registrable Securities” means the Purchase
Shares which have been, or which may from time to time be, issued or issuable
to the Investor upon purchases of the Available Amount under the Purchase
Agreement (without regard to any limitation or restriction on purchases, and
including without limitation the Initial Purchase Shares) and the Commitment
Shares issued or issuable to the Investor and any shares of capital stock
issued or issuable with respect to the Purchase Shares and the Commitment
Shares as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise, without regard to any limitation on
purchases under the Purchase Agreement.

                      e.          “Registration Statement” means the
registration statement of the Company covering only the sale of the Registrable
Securities.

          2.         REGISTRATION.

                      a.          Mandatory
Registration. The Company shall within thirty (30) Business Days from the
date hereof file with the SEC the Registration Statement. The Registration
Statement shall register only the Registrable Securities and no other
securities of the Company. The Investor and its counsel shall have a reasonable
opportunity to review and comment upon such registration statement or amendment
to such registration statement and any related prospectus prior to its filing with
the SEC. Investor shall furnish all information reasonably requested by the
Company for inclusion therein. The Company shall use its best efforts to have
the Registration Statement or amendment declared effective by the SEC at the
earliest possible date. The Company shall use reasonable best efforts to keep
the Registration Statement effective pursuant to Rule 415 promulgated under the
Securities Act and available for sales of all of the Registrable Securities at
all times until the earlier of (i) the date as of which the Investor may sell
all of the Registrable Securities without restriction pursuant to the last
sentence of Rule 144(b)(1)(i) promulgated under the Securities Act (or
successor thereto) or (ii) the date on which (A) the Investor shall have sold
all the Registrable Securities and no Available Amount remains under the
Purchase Agreement (the “Registration Period”).
The Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any 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 in
which they were made, not misleading.

                      b.          Rule
424 Prospectus. The Company shall, as required by applicable securities
regulations, from time to time file with the SEC, pursuant to Rule 424
promulgated under the Securities Act, the prospectus and prospectus
supplements, if any, to be used in connection with sales of the Registrable
Securities under the Registration Statement. The Investor and its counsel shall
have a reasonable opportunity to review and comment upon such prospectus prior
to its filing with the SEC. The Investor shall use its reasonable best efforts
to comment upon such prospectus within one (1) Business Day from the date the
Investor receives the final version of such prospectus. 

                      c.          Sufficient
Number of Shares Registered. In the event the number of shares available
under the Registration Statement is insufficient to cover all of the
Registrable Securities, the Company shall amend the Registration Statement or
file a new registration statement (a “New
Registration Statement”), so as to cover all of such Registrable
Securities as soon as practicable, but in any event not later than twenty (20)
Business Days after the necessity therefor arises. The Company shall use it
reasonable best efforts to cause such amendment and/or New Registration
Statement to become effective as soon as practicable following the filing
thereof. 

          3.         RELATED
OBLIGATIONS.

          With
respect to the Registration Statement and whenever any Registrable Securities
are to be registered pursuant to Section 2(b) including on any New Registration
Statement, the Company shall use its reasonable best efforts to effect the
registration of the Registrable Securities in accordance with the intended
method of disposition thereof and, pursuant thereto, the Company shall have the
following obligations:

                      a.          The
Company shall prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to any registration statement and
the prospectus used in connection with such registration statement, which
prospectus is to be filed pursuant to Rule 424 promulgated under the Securities
Act, as may be necessary to keep the Registration Statement or any New
Registration Statement effective at all times during the Registration Period, and,
during such period, comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered
by the Registration Statement or any New Registration Statement 

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until
such time as all of such Registrable Securities shall have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in such registration statement.

                      b.          The
Company shall permit the Investor to review and comment upon the Registration
Statement or any New Registration Statement and all amendments and supplements
thereto at least two (2) Business Days prior to their filing with the SEC, and
not file any document in a form to which Investor reasonably objects. The
Investor shall use its reasonable best efforts to comment upon the Registration
Statement or any New Registration Statement and any amendments or supplements
thereto within two (2) Business Days from the date the Investor receives the final
version thereof. The Company shall furnish to the Investor, without charge any
correspondence from the SEC or the staff of the SEC to the Company or its
representatives relating to the Registration Statement or any New Registration
Statement.

                      c.          Upon
request of the Investor, the Company shall furnish to the Investor, (i)
promptly after the same is prepared and filed with the SEC, at least one copy
of such registration statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference and
all exhibits, (ii) upon the effectiveness of any registration statement, a copy
of the prospectus included in such registration statement and all amendments
and supplements thereto (or such other number of copies as the Investor may
reasonably request) and (iii) such other documents, including copies of any
preliminary or final prospectus, as the Investor may reasonably request from
time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor.

                      d.          The
Company shall use reasonable best efforts to (i) register and qualify the
Registrable Securities covered by a registration statement under such other
securities or “blue sky” laws of such jurisdictions in the United States as the
Investor reasonably requests, (ii) prepare and file in those jurisdictions,
such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not
be required in connection therewith or as a condition thereto to (x) qualify to
do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(d), (y) subject itself to general taxation in
any such jurisdiction, or (z) file a general consent to service of process in
any such jurisdiction. The Company shall promptly notify the Investor who holds
Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the
Registrable Securities for sale under the securities or “blue sky” laws of any
jurisdiction in the United States or its receipt of actual notice of the
initiation or threatening of any proceeding for such purpose.

                      e.          As
promptly as practicable after becoming aware of such event or facts, the
Company shall notify the Investor in writing of the happening of any event or
existence of such facts as a result of which the prospectus included in any
registration statement, as then in effect, includes an untrue statement of a material
fact or omits 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, and promptly prepare a supplement or
amendment to such registration statement to correct such untrue statement or
omission, and deliver a copy of such supplement or amendment to the Investor
(or such other number of copies as the Investor may reasonably request). The
Company shall also promptly notify the Investor in writing (i) when a
prospectus or any prospectus supplement or post-effective amendment has been
filed, and when a registration statement or any post-effective amendment has
become effective (notification of such effectiveness shall be delivered to the Investor
by facsimile on the same day of such 

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effectiveness
and by overnight mail), (ii) of any request by the SEC for amendments or
supplements to any registration statement or related prospectus or related
information, and (iii) of the Company’s reasonable determination that a
post-effective amendment to a registration statement would be appropriate.

                      f.          The
Company shall use its reasonable best efforts to prevent the issuance of any
stop order or other suspension of effectiveness of any registration statement,
or the suspension of the qualification of any Registrable Securities for sale
in any jurisdiction and, if such an order or suspension is issued, to obtain
the withdrawal of such order or suspension at the earliest possible moment and
to notify the Investor of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding
for such purpose.

                      g.          The
Company shall (i) cause all the Registrable Securities to be listed on each
securities exchange on which securities of the same class or series issued by
the Company are then listed, if any, if the listing of such Registrable
Securities is then permitted under the rules of such exchange, or (ii) secure
designation and quotation of all the Registrable Securities on the Principal
Market. The Company shall pay all fees and expenses in connection with
satisfying its obligation under this Section.

                      h.          The
Company shall cooperate with the Investor to facilitate the timely preparation
and delivery of certificates (not bearing any restrictive legend) representing
the Registrable Securities to be offered pursuant to any registration statement
and enable such certificates to be in such denominations or amounts as the
Investor may reasonably request and registered in such names as the Investor
may request.

                      i.          The
Company shall at all times provide a transfer agent and registrar with respect
to its Common Stock.

                      j.          If
reasonably requested by the Investor, the Company shall (i) immediately
incorporate in a prospectus supplement or post-effective amendment such
information as the Investor believes should be included therein relating to the
sale and distribution of Registrable Securities, including, without limitation,
information with respect to the number of Registrable Securities being sold,
the purchase price being paid therefor and any other terms of the offering of
the Registrable Securities; (ii) make all required filings of such prospectus
supplement or post-effective amendment as soon as notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and
(iii) supplement or make amendments to any registration statement.

                      k.          The
Company shall use its reasonable best efforts to cause the Registrable
Securities covered by any registration statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to consummate the disposition of such Registrable Securities.

                      l.          Within
one (1) Business Day after any registration statement which includes the
Registrable Securities is ordered effective by the SEC, the Company shall
deliver, and shall cause legal counsel for the Company to deliver, to the
transfer agent for such Registrable Securities (with copies to the Investor)
confirmation that such registration statement has been declared effective by
the SEC in the form attached hereto as Exhibit A. Thereafter, if requested by
the Buyer at any time, the Company shall require its counsel to deliver to the
Buyer a written confirmation whether or not the effectiveness of such registration
statement has lapsed at any time for any reason (including, without limitation,
the issuance of a stop order) and whether or not the registration statement is
current and available to the Buyer for sale of all of the Registrable
Securities. 

4

                      m.          The
Company shall take all other reasonable actions necessary to expedite and
facilitate disposition by the Investor of Registrable Securities pursuant to
any registration statement.

          4.         OBLIGATIONS
OF THE INVESTOR.

                      a.          The
Company shall notify the Investor in writing of the information the Company
reasonably requires from the Investor in connection with any registration
statement hereunder. The Investor shall furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method
of disposition of the Registrable Securities held by it as shall be reasonably
required to effect the registration of such Registrable Securities and shall
execute such documents in connection with such registration as the Company may
reasonably request.

                      b.          The
Investor agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of any registration
statement hereunder.

                      c.          The
Investor agrees that, upon receipt of any notice from the Company of the
happening of any event or existence of facts of the kind described in Section
3(f) or the first sentence of 3(e), the Investor will immediately discontinue
disposition of Registrable Securities pursuant to any registration statement(s)
covering such Registrable Securities until the Investor’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3(f) or the
first sentence of 3(e). Notwithstanding anything to the contrary, the Company
shall cause its transfer agent to promptly deliver shares of Common Stock
without any restrictive legend in accordance with the terms of the Purchase
Agreement in connection with any sale of Registrable Securities with respect to
which an Investor has entered into a contract for sale prior to the Investor’s
receipt of a notice from the Company of the happening of any event of the kind
described in Section 3(f) or the first sentence of Section 3(e) and for which
the Investor has not yet settled.

          5.         EXPENSES
OF REGISTRATION.

                      All
reasonable expenses, other than sales or brokerage commissions, incurred in
connection with registrations, filings or qualifications pursuant to Sections 2
and 3, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, and fees and disbursements
of counsel for the Company, shall be paid by the Company.

          6.         INDEMNIFICATION.

                      a.          To
the fullest extent permitted by law, the Company will, and hereby does,
indemnify, hold harmless and defend the Investor, each Person, if any, who
controls the Investor and the members, directors, officers, partners,
employees, agents, representatives of each Person who controls the Investor, or
the Investor, within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”) (each, an “Indemnified
Person”), against any losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid in
settlement or expenses, joint or several, (collectively, “Claims”) incurred in investigating,
preparing or defending any action, claim, suit, inquiry, proceeding,
investigation or appeal taken from the foregoing by or before any court or
governmental, administrative or other regulatory agency, body or the SEC,
whether pending or threatened, whether or not an indemnified party is or may be
a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon: (i) any untrue statement or alleged untrue statement of a
material fact in the Registration Statement, any New Registration Statement or
any post-effective amendment thereto or in any filing made in connection with
the qualification of the offering under the securities or other “blue sky” laws
of any jurisdiction in which Registrable Securities 

5

are
offered (“Blue Sky Filing”), or
the omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii) any
untrue statement or alleged untrue statement of a material fact contained in
the final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, (iii) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any other law,
including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to the Registration Statement or any New Registration
Statement or (iv) any material violation by the Company of this Agreement (the
matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). The Company shall reimburse
each Indemnified Person promptly as such expenses are incurred and are due and
payable, for any reasonable legal fees or other reasonable expenses incurred by
them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (i) shall not apply to a Claim by an
Indemnified Person arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information about the Investor furnished
in writing or electronically to the Company by such Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement, any New Registration Statement or any such amendment thereof or
supplement thereto, if such prospectus was timely made available by the Company
pursuant to Section 3(c) or Section 3(e); (ii) with respect to any superceded
prospectus, shall not inure to the benefit of any such person from whom the
person asserting any such Claim purchased the Registrable Securities that are
the subject thereof (or to the benefit of any person controlling such person)
if the untrue statement or omission of material fact contained in the
superceded prospectus was corrected in the revised prospectus, as then amended
or supplemented, if such revised prospectus was timely made available by the
Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person
was promptly advised in writing not to use the incorrect prospectus prior to
the use giving rise to a violation and such Indemnified Person, notwithstanding
such advice, used it; (iii) shall not be available to the extent such Claim is
based on a failure of the Investor to deliver or to cause to be delivered the
prospectus made available by the Company, if such prospectus was timely made
available by the Company pursuant to Section 3(c) or Section 3(e); and (iv)
shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of the Company, which consent shall
not be unreasonably withheld. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the
Investor pursuant to Section 9.

                      b.          In
connection with the Registration Statement or any New Registration Statement,
the Investor agrees to severally and not jointly indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section
6(a), the Company, each of its directors, each of its officers who signs the
Registration Statement or any New Registration Statement, each Person, if any,
who controls the Company within the meaning of the Securities Act or the Exchange
Act (collectively and together with an Indemnified Person, an “Indemnified Party”), against any Claim or
Indemnified Damages to which any of them may become subject, under the
Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case to the
extent, and only to the extent, that such Violation occurs in reliance upon and
in conformity with written information about the Investor set forth on Exhibit B attached hereto and furnished to the Company by the Investor expressly for
use in connection with such registration statement; and, subject to Section
6(d), the Investor will reimburse any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such Claim;
provided, however, that the indemnity agreement contained in this Section 6(b)
and the agreement with respect to contribution contained in Section 7 shall not
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Investor, which consent shall not be
unreasonably  

6

withheld;
provided, further, however, that the Investor shall be liable under this
Section 6(b) for only that amount of a Claim or Indemnified Damages as does not
exceed the net proceeds to the Investor as a result of the sale of Registrable
Securities pursuant to such registration statement. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf
of such Indemnified Party and shall survive the transfer of the Registrable
Securities by the Investor pursuant to Section 9. 

                      c.          Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section
6 of notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving a Claim, such Indemnified Person
or Indemnified Party shall, if a Claim in respect thereof is to be made against
any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding The Indemnified Party or Indemnified Person shall
cooperate fully with the indemnifying party in connection with any negotiation
or defense of any such action or claim by the indemnifying party and shall
furnish to the indemnifying party all information reasonably available to the
Indemnified Party or Indemnified Person which relates to such action or claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person
fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. No indemnifying party shall be liable for
any settlement of any action, claim or proceeding effected without its written
consent, provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without
the consent of the Indemnified Party or Indemnified Person, consent to entry of
any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party or Indemnified Person of a release from all
liability in respect to such claim or litigation. Following indemnification as
provided for hereunder, the indemnifying party shall be subrogated to all rights
of the Indemnified Party or Indemnified Person with respect to all third
parties, firms or corporations relating to the matter for which indemnification
has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or
Indemnified Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such action.

                      d.          The
indemnification required by this Section 6 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as and
when bills are received or Indemnified Damages are incurred.

                      e.          The
indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Indemnified Party or Indemnified Person against
the indemnifying party or others, and (ii) any liabilities the indemnifying
party may be subject to pursuant to the law.

          7.         CONTRIBUTION.

                      To
the extent any indemnification by an indemnifying party is prohibited or
limited by law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for 

7

which
it would otherwise be liable under Section 6 to the fullest extent permitted by
law; provided, however, that: (i) no seller of Registrable Securities guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of
Registrable Securities who was not guilty of fraudulent misrepresentation; and
(ii) contribution by any seller of Registrable Securities shall be limited in
amount to the net amount of proceeds received by such seller from the sale of
such Registrable Securities.

          8.         REPORTS
AND DISCLOSURE UNDER THE SECURITIES ACTS.

                      With
a view to making available to the Investor the benefits of Rule 144 promulgated
under the Securities Act or any other similar rule or regulation of the SEC
that may at any time permit the Investor to sell securities of the Company to
the public without registration (“Rule 144”),
the Company agrees, at the Company’s sole expense, to:

                      a.          make
and keep public information available, as those terms are understood and
defined in Rule 144;

                      b.          file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act so long as the Company
remains subject to such requirements and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

                      c.          furnish
to the Investor so long as the Investor owns Registrable Securities, promptly
upon request, (i) a written statement by the Company that it has complied with
the reporting and or disclosure provisions of Rule 144, the Securities Act and
the Exchange Act, (ii) a copy of the most recent annual or quarterly report of
the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the
Investor to sell such securities pursuant to Rule 144 without registration.

                      d.          deliver
all such legal opinions, consents, certificates, resolutions and instructions
to the Company’s Transfer Agent as may be requested from time to time by the
Investor and otherwise fully cooperate with Investor and Investor’s broker to
effect such sale of securities pursuant to Rule 144.

                      The
Company agrees that damages may be an inadequate remedy for any breach of the
terms and provisions of this Section 8 and that Investor shall, whether or not
it is pursuing any remedies at law, be entitled to equitable relief in the form
of a preliminary or permanent injunctions, without having to post any bond or
other security, upon any breach or threatened breach of any such terms or
provisions.

          9.         ASSIGNMENT
OF REGISTRATION RIGHTS. 

                      The
Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Investor. The Investor may not assign
its rights under this Agreement.

          10.       AMENDMENT
OF REGISTRATION RIGHTS.

                      Provisions
of this Agreement may be amended and the observance thereof may be waived
(either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Investor.

8

          11.       MISCELLANEOUS.

                      a.          A
Person is deemed to be a holder of Registrable Securities whenever such Person
owns or is deemed to own of record such Registrable Securities. If the Company
receives conflicting instructions, notices or elections from two or more
Persons with respect to the same Registrable Securities, the Company shall act
upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

                      b.          Any
notices, consents, waivers or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed
to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending
party); or (iii) one (1) Business Day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 If to the Company: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 GREEN EARTH TECHNOLOGIES, INC.

 
	
  

 	
  

 	
 10 Bank
 Street, Suite 680

 
	
  

 	
  

 	
 White
 Plains, NY 10606

 
	
  

 	
  

 	
 Telephone: 

 	
 877-438-4761

 
	
  

 	
  

 	
 Facsimile: 

 	
 877-438-3293

 
	
  

 	
  

 	
 Attention: 

 	
 Greg Adams

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 With a copy to:

 	
  

 
	
  

 	
  

 	
 Morse,
 Zelnick, Rose &Lander, LLP

 
	
  

 	
  

 	
 405 Park
 Avenue, Suite 1401

 
	
  

 	
  

 	
 New York, NY
 10022

 
	
  

 	
  

 	
 Telephone: 

 	
 877-438-4761

 
	
  

 	
  

 	
 Facsimile: 

 	
 877-438-3293

 
	
  

 	
  

 	
 Attention: 

 	
 Joel J.
 Goldschmidt, Esq.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 If to the Investor:

 	
  

 
	
  

 	
  

 	
 Lincoln Park Capital Fund,
 LLC

 
	
  

 	
  

 	
 440 N. Wells, Suite 620

 
	
  

 	
  

 	
 Chicago, IL 60654

 
	
  

 	
  

 	
 Telephone: 

 	
 312-822-9300

 
	
  

 	
  

 	
 Facsimile: 

 	
 312-822-9301

 
	
  

 	
  

 	
 Attention: 

 	
 Josh Scheinfeld/Jonathan
 Cope

 

or
at such other address and/or facsimile number and/or to the attention of such
other person as the recipient party has specified by written notice given to
each other party three (3) Business Days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such
transmission or (C) provided by a nationally recognized overnight delivery service,
shall be rebuttable evidence of personal service, receipt by facsimile or
receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

9

                      c.          Failure
of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as a
waiver thereof.

                      d.          The
corporate laws of the State of Delaware shall govern all issues concerning the
relative rights of the Company and its stockholders. All other questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of Illinois,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of
Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting the City of Chicago, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. If any provision of
this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY.

                      e.          This
Agreement, and the Purchase Agreement constitute the entire agreement among the
parties hereto with respect to the subject matter hereof and thereof. There are
no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. This Agreement and the Purchase
Agreement supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

                      f.          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of
and be binding upon the permitted successors and assigns of each of the parties
hereto.

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

                      h.          This
Agreement may be executed in identical counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission or by e-mail in a “.pdf” format
data file of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.

                      i.          Each
party shall do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

10

                      j.          The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent and no rules of strict construction will
be applied against any party.

                      k.          This
Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person.

* * * * * *

11

          IN
WITNESS WHEREOF, the
parties have caused this Registration Rights Agreement to be duly executed as
of day and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE COMPANY:

 
	
  

 	
  

 
	
  

 	
 GREEN EARTH TECHNOLOGIES, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Greg D. Adams 

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
 Name:  Greg D.
 Adams 

 
	
  

 	
 Title:  Chief
 Operating Officer and CFO 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 LINCOLN PARK CAPITAL FUND, LLC

 
	
  

 	
 BY: LINCOLN PARK CAPITAL, LLC

 
	
  

 	
 BY: ROCKLEDGE
 CAPITAL CORPORATION

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Josh Scheinfeld

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
 Name:  Josh
 Scheinfeld

 
	
  

 	
 Title:  President

 

12

	
  

 	
  

 
	
 EXHIBIT A

 
	
  

 	
  

 
	
 TO REGISTRATION RIGHTS AGREEMENT

 
	
  

 	
  

 
	
 FORM OF NOTICE OF EFFECTIVENESS

 
	
 OF REGISTRATION STATEMENT

 
	
  

 	
  

 
	
 [Date]

 	
  

 
	
  

 	
  

 
	
  [TRANSFER
 AGENT]

 
	
  

 	
  

 
	 

 	
  

 
	
  

 	
  

 
	 

 	
  

 
	
  

 	
  

 
	
 Re: [__________]

 	
  

 
	
  

 	
  

 
	
 Ladies and Gentlemen:

 	
  

 

          We
are counsel to GREEN EARTH TECHNOLOGIES, INC.,
a Delaware corporation (the “Company”),
and have represented the Company in connection with that certain Purchase
Agreement, dated as of _________, 2011 (the “Purchase
Agreement”), entered into by and between the Company and Lincoln
Park Capital Fund, LLC (the “Buyer”)
pursuant to which the Company has agreed to issue to the Buyer shares of the
Company’s Common Stock, par value $0.001 per share (the “Common Stock”), in an amount up to Fifteen
Million Dollars ($15,000,000) (the “Purchase
Shares”), in accordance with the terms of the Purchase Agreement. In
connection with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S.
Securities & Exchange Commission the following shares of Common Stock:

	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 _________
 shares of Common Stock to be issued upon purchase from the Company by the
 Buyer from time to time (the “Purchase
 Shares”. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 574,300
 shares of Common Stock which have been issued to the Buyer as a commitment
 fee (the “Initial Commitment Shares”).

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 574,300 additional Commitment Shares to be issued
 in connection with each purchase of Purchase Shares (the “Additional Commitment Shares” and
 together with the Initial Commitment Shares, the “Commitment Shares”).

 

Pursuant
to the Purchase Agreement, the Company also has entered into a Registration
Rights Agreement, dated as of ______, 2011, with the Buyer (the “Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the Purchase
Shares and the Commitment Shares under the Securities Act of 1933, as amended
(the “Securities Act”). In
connection with the Company’s obligations under the Purchase Agreement and the
Registration Rights Agreement, on _______, 2011, the Company filed a
Registration Statement (File No. 333-_________) (the “Registration Statement”) with the Securities and Exchange
Commission (the “SEC”) relating to
the sale of the Purchase Shares and the Commitment Shares.

          In
connection with the foregoing, we advise you that a member of the SEC’s staff
has advised us by telephone that the SEC has entered an order declaring the
Registration Statement effective under the Securities Act at _____ P.M. on
__________, 2011 and we have no knowledge, after telephonic inquiry of a member
of the SEC’s staff, that any stop order suspending its effectiveness has been
issued or that 

any
proceedings for that purpose are pending before, or threatened by, the SEC and
the Purchase Shares and the Commitment Shares are available for sale under the
Securities Act pursuant to the Registration Statement and may issued without
any restrictive legend. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Very truly yours,

 
	
  

 	
 [Company Counsel]

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 cc:          Lincoln
 Park Capital Fund, LLC

 

EXHIBIT B

TO REGISTRATION RIGHTS AGREEMENT

Information About The Investor Furnished To
The Company By The Investor 

Expressly For Use In Connection With The
Registration Statement

As of the date of the Purchase Agreement, Lincoln Park Capital Fund,
LLC, beneficially owned no shares of common stock of the Company. Josh
Scheinfeld and Jonathan Cope, the Managing Members of Lincoln Park Capital,
LLC, are deemed to be beneficial owners of all of the shares of common stock
owned by Lincoln Park Capital Fund. Messrs. Cope and Scheinfeld have shared
voting and investment power over the shares being offered under the prospectus
filed with the SEC in connection with the transactions contemplated under the
Purchase Agreement.
Lincoln Park Capital is not a licensed broker dealer or an affiliate of a
licensed broker dealer.form8k8k050111ex10-1.htm

 

PROPERTY OPTION AGREEMENT

THIS AGREEMENT made and entered into as of the 1st day of May, 2011

BETWEEN:  Nevada Mine Properties II, Inc., a company having a mailing address at 5819 N. White Sands Rd., Reno, Nevada, 89511, U.S.A.

AND

Dave C. Mough Mineral Explorations, a privately owned concern having a mailing address at P. O. Box 1937, Nevada City, CA  95959

	
  

	
(herein called the “Optionor”)

OF THE FIRST PART

	
AND:

	
BCS Solutions, Inc., a company having a mailing address at 3651 Lindell Road, Suite D, Las Vegas, Nevada, 89103, U.S.A

	
 

	
  

	
(herein called the “Optionee”)

OF THE SECOND PART

WHERAS the Optionor has represented that it is the sole recorded and beneficial owner in and to the property called the LB/Vixen Project (the “Property) described in Schedule “A” attached hereto;

	
  

	
AND WHEREAS the Optionor, subject to the Net Smelter Royalty reserved to the

	
  

	
Optionor, now wishes to grant to the Optionee the exclusive right and option to acquire

	
  

	
an undivided 100% right, title and interest in and to the Property on the terms and

	
  

	
conditions hereinafter set forth;

	
  

	
NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of

	
  

	
the premises, the mutual covenants herein set forth and the sum of One Dollar ($1.00) of

	
  

	
lawful money of U.S. currency now paid by the Optionee to the Optionor (the receipt

	
  

	
whereof is hereby acknowledged), the Parties hereto do hereby mutually covenant and

	
  

	
agree as follows:

	
1.

	
Definitions

	
  

	
The following words, phrases and expressions shall have the following meanings:

	
  

	
(a)

	
“After Acquired Properties” means any and all mineral interests staked, located, granted or acquired by or on behalf of either of the parties hereto during the currency of this Agreement which are located, in the whole or in part, within one mile of the existing perimeter of the Property;

  

1

  

	
  

	
(b)

	
“Exchange” means OTCBB Venture Exchange;

	
  

	
(c)

	
“Expenditures” includes all direct or indirect expenses [net of government incentives and not including payments to the Optionor pursuant to section 4, paragraphs (a), (b)(ii), (c)(ii), (d)(ii), (e)(ii), (f)(ii), (g)(ii), (h)(ii), (i)(ii), (j)(ii), and (k)(ii) hereof ] of or incidental to Mining Operations. The certificate of the Controller or other financial officer of the Optionee, together with a statement of Expenditures in reasonable detail shall be prima facie evidence of such Expenditures; the parties hereto agree that Property payments and Property expenditures are separate payments as outlined in paragraph 4;

	
  

	
(d)

	
“Facilities” means all mines and plants, including without limitation, all pits, shafts, adits, haulageways, raises and other underground workings, and all buildings, plants, facilities and other structures, fixtures and improvements, and all other property, whether fixed or moveable, as the same may exist at any time in, or on the Property and relating to the operator of the Property as a mine or outside the Property if for the exclusive benefit of the Property only;

	
  

	
(e)

	
“Filing Fees” means all fees, payments and expenses necessary to keep the mineral claims in good standing with federal, state and local government entities;

	
  

	
(f)

	
“Force Majeure” means an event beyond the reasonable control of the Opionee that prevents or delays it from conducting the activities contemplated by this Agreement other than the making of payments referred to in Section 4 herein. Such events shall include but not be limited to acts of God, war, insurrection, action of governmental agencies reflecting an instability in government procedures, or delay in permitting unacceptable to both Optionor and Optionee;

	
  

	
(g)

	
“Mineral Products” means the commercial end products derived from operating the Property as a mine:

	
  

	
(h)

	
“Mining Operations” includes:

	
(i)

	
every kind of work done on or with respect to the Property by or

	
  

	
under the direction of the Optionee during the Option Period or

	
  

	
pursuant to an approved Work Program; and

  

2

  

	
(ii)

	
without limiting the generality of the foregoing, including all work

	
  

	
capable of receiving assessment credits pursuant to the Mines and

	
  

	
Minerals act of Nevada and the work of assessment,

	
  

	
geophysical, geochemical and geological surveys, studies and

	
  

	
mapping, investigating, drilling, designing, examining equipping,

	
  

	
improving, surveying, shaft sinking, raising, cross-cutting and

	
  

	
drifting, searching for, digging, trucking, sampling, working and

	
  

	
procuring minerals, ores and metals, in surveying and bringing any

	
  

	
mineral claims to lease or patent, in doing all other work usually

	
  

	
considered to be prospecting, exploration, development, a

	
  

	
feasibility study, mining work, milling concentration, beneficiation

	
  

	
or ores and concentrates, as well as the separation and extraction of

	
  

	
Mineral Products and all reclamation, restoration and permittingactivities;

(i)           “Net Smelter Royalty” means that Net Smelter Royalty as defined in

	
  

	
Schedule “B” attached hereto (“NSR”);

(j)           “Option” means the option granted by the Optionor to the Optionee to

	
  

	
acquire, subject to the NSR reserved to the Optionor, an undivided 100%

	
  

	
right, title and interest in and to the Property as more particularly set forth

	
  

	
in Section 4;

(k)           “Option Period” means the period from the date hereof to the date at

	
  

	
which the Optionee has performed its obligations to acquire its 100%

	
  

	
interest in the Property as set out in Section 4 hereof, which ever shall be

	
  

	
the lesser period;

(l)           “Property” means the mineral claims described in Schedule “A”;

(m)           “Work Program” means a program of work reasonably acceptable to both

	
  

	
parties in respect of a particular Property, contained in a written document

	
  

	
setting out in reasonable detail;

	
(i)

	
An outline of the Mining Operations proposed to be undertaken

	
  

	
and conducted on the Property, specifically stating the period of

	
  

	
time during which the work contemplated by the proposed

	
  

	
program is to be done and performed;

	
(ii)

	
The estimated cost of such Mining Operations including a

	
  

	
proposed budget providing for estimated monthly cash

	
  

	
requirements in advance and giving reasonable details; and

  

3

  

	
(iii)

	
The identity and credentials of the person or persons undertaking the Mining Operations so proposed if not the Optionor, reasonably acceptable to both parties hereto.

	
2.

	
Headings

	
  

	
Any heading, caption or index hereto shall not be used in any way in construing

	
  

	
or interpreting any provision hereof.

	
3.

	
Singular, Plural

	
  

	
Whenever the singular or masculine or neuter is used in this Agreement, the same

	
  

	
shall be construed as meaning plural or feminine or body politic or corporate or vice

	
  

	
versa, as the context so requires.

	
4.

	
Option

	
  

	
The Optionor hereby grants to the Optionee the sole and exclusive right and

	
  

	
option (the “Option”) to earn a 100% interest in the Property exercisable as follows:

	
  

	
(a)

	
The Optionee paying the sum of $20,000 USD to the Optionor by way of cash and reimburse all holding costs and expenses of location of mining claims, such expenses to be identified in Schedule “C”;

	
  

	
(b)

	
On or before May 1st, 2012

	
(i)

	
The Optionee incurring Expenditures of $200,000 USD on the

	
  

	
property;

	
(ii)

	
The Optionee paying $20,000 USD to the Optionor;

	
  

	
(c)

	
On or before May 1st, 2013

	
(i)

	
The Optionee incurring Expenditures of $200,000 USD on the

	
  

	
Property in addition to the expenditures referred to in clause

	
  

	
(b)(i);

	
(ii)

	
The Optionee paying $60,000 U.S to the Optionor;

  

4

  

	
  

	
(d)

	
On or before May 1st, 2014

	
(i)

	
The Optionee incurring Expenditures of $200,000 USD on the

	
  

	
Property in addition to the expenditures referred to in clauses

	
  

	
(b)(i) and (c)(i) hereof; and

	
(ii)

	
The Optionee paying $45,000 USD to the Optionor;

	
  

	
(e)

	
On or before May 1st, 2015

	
(i)

	
The Optionee incurring Expenditures of $250,000 USD on the

	
  

	
Property in addition to the expenditures referred to in clauses

	
  

	
(b)(i), (c)(i) and (d)(i) hereof; and

	
(ii)

	
The Optionee paying $60,000 USD to the Optionor; and

	
  

	
(f)

	
On or before May 1st, 2016

(i)            The Optionee incurring Expenditures of $250,000 USD on the Property in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i) and (e)(i) hereof;

(ii)           The Optionee paying $70,000 USD to the Optionor.

	
  

	
(g)

	
On or before May 1st, 2017

(i)           The Optionee incurring Expenditures of $300,000 USD on the Property in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i) and (e)(i) and (f)(i) hereof

(ii)           The Optionee paying $80,000 USD to the Optionor; and

	
  

	
(h)

	
On or before May 1st, 2018

(i)            The Optionee incurring Expenditures of $300,000 USD on the Property in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i) and (g)(i) hereof;

(ii)           The Optionee paying $90,000 USD to the Optionor; and

	
  

	
(i)

	
On or before May 1st, 2019

(i)            The Optionee incurring Expenditures of $350,000 USD on the Property in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i) and (h)(i) hereof;

  

5

  

(ii)           The Optionee paying $100,000 USD to the Optionor; and

	
  

	
(j)

	
On or before May 1st, 2020

(i)           The Optionee incurring Expenditures of $400,000 USD on the Property in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i) and (i)(i) hereof;

(ii)          The Optionee paying $100,000 USD to the Optionor; and

	
  

	
(k)

	
On or before May 1st, 2021

(i)           The Optionee incurring Expenditures of $750,000 USD on the Property in addition to the expenditures referred to in clauses (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i) and (j)(i) hereof;

(ii)           Optionee paying $250,000 USD to the Optionor.  Following which

the Optionee shall be deemed to have exercised the Option (the

“Exercise Date”) and shall be entitled to an undivided 100% right,

title and interest in and to the Property with the full right and

authority to equip the Property for production and operate the

Property as a mine subject to the rights of the Optionor to receive

the NSR.

The Optionee shall have the one time right exercisable for 90 days following completion of a bankable feasibility study to buy up to two thirds (66.7%) of the Optionor’s NSR interest (i.e. an amount equal to 2% of the NSR interest) for USD $3,000,000. The right to purchase the said NSR interest shall be exercised by the Optionee providing the Optionor with notice of the purchase accompanied by payment in the amount of USD $3,000,000.

The Optionor and Optionee understand and confirm that all Expenditures incurred in a particular period, including any excess in the amount of Expenditures required to be incurred to maintain the Option during such period, shall be carried over and included in the aggregate amount of Expenditures for the subsequent period, but not to exceed more than three (3) consecutive years.

Notwithstanding paragraphs (b)(i), (c)(i), (d)(i), (e)(i), (f)(i), (g)(i), (h)(i), (i)(i), (j)(i) and (k)(i) if the Optionee has not incurred the requisite Expenditures to maintain its option in good standing prior to May 1st  of any given year, the Optionee may pay to the Optionor within 60 days following the expiry of such period, the amount of the deficiency and such amount shall thereupon be deemed to have been Expenditures incurred by the Optionee during such period.

  

6

  

	
  

	
(l)

	
The doing of any act or the incurrence of any cash payments by the Optionee shall not obligate the Optionee to do any further acts or make  any further payments with the exception of fees and expenses to keep said property in good standing as per paragraph 8b.

5.           Transfer of Title

Upon Optionee’s completion of all requirements to earn a 100 percent interest in the Property, the Optionor will deliver or cause to be delivered to the Optionee’s solicitors a duly executed transfer of Property in favor of the Optionee (the “Optionee Transfer”). The Optionee shall be entitled to record the Optionee Transfer with the appropriate government offices to effect transfer of legal title of the Property into its own name upon the full and complete exercise of the Option by the Optionee. In the event the Optionee Transfer is recorded the Optionor shall be entitled to record notice of its NSR interest.

6.           Mining Operations during Option

During the Option Period, the Optionor may provide its mineral exploration expertise on the Property, on a consultation basis for and on behalf of the Optionee, at the election of the Optionee.  However, the Optionee has the exclusive right to determine what Expenditures and Mining Operations it will perform, when they will be performed, and by whom. If the Optionee elects to use the mineral expertise and consulting services of the Optionor, then the Optionor shall invoice for time for consulting services and related travel expenses from time to time and the prompt payment of such invoices when due shall constitute a portion of Expenditures by the Optionee as contemplated under Section 4 hereof.

During the currency of this Agreement, the Optionee, its servants, agents and workmen and any persons duly authorized by the Optionee, shall have the right of access to and from and to enter upon and take possession of and prospect, explore and develop the Property in such manner as the Optionee in its sole discretion may deem advisable and shall have the right to remove and ship therefrom ores, minerals, metals, or other products recovered in any manner therefrom.

7.           Assignment

During the Option Term, both parties shall have the right to sell, transfer, assign, mortgage, pledge its interest in this Agreement or its right or interest in the Property. It will be a condition of any assignment under this Agreement that such assignee shall agree in writing to be bound by the terms of this Agreement applicable to the assignor.

  

7

  

8.           Termination

This Agreement shall forthwith terminate in circumstances where:

	
  

	
(a)

	
The Optionee shall fail to comply with any of its obligations hereunder, subject to Force Majeure, and within 30 days of receipt by the Optionee of written notice from the Optionor of such default, the Optionee has not:

(i)           cured such default, or commenced proceedings to cure such

default and prosecuted same to completion without undue

delay; or

(ii)           given the Optionor notice that it denies that such default

has occurred.

In the event that the Optionee gives notice that it denies that a default has occurred, the Opionee shall not be deemed to be in default until the matter shall have been determined finally through such means of dispute resolution as such matter has been subjected to by either party; or

	
  

	
(b)

	
The Optionee gives notice of termination to the Optionor, which it shall be at liberty to do at any time after the execution of this Agreement. If and when the Optionee elects to terminate this Agreement, or terminate one of the projects comprising the Property, at such time the Property or the specific project will be returned to the Optionor and all claim fees, payments and expenses will be paid in order to maintain the property in good standing for one year after termination.

Upon the termination of this Agreement under this Section 8, the Optionee shall cease to be liable to the Optionor in debt, damages, claim fees or otherwise, other than to pay the claim fees as described in paragraph (b) of this Section 8 and all liabilities referred to in Section 11.

Upon termination of this Agreement under this Section 8, the Optionee shall return the Property, including all property within the designated boundary of the area of interest, to the Optionor. The Optionee shall vacate the Property within a reasonable time after such termination and relinquishment, but shall have the right of access to the Property for a period of six months thereafter for the purpose of removing its chattels, machinery, equipment and fixtures.

  

8

  

9.           Representations, Optionies and Covenants of the Optionor

The Optionor represents, options and covenants to and with the Optionee as follows:

	
  

	
(a)

	
The Optionor is a company duly organized validly existing and in

good standing under the laws of Nevada or as a wholly owned private entity;

	
  

	
(b)

	
The Optionor has full power and authority to carry on its business and to

enter into this Agreement and any agreement or instrument referred to or contemplated by this Agreement;

	
  

	
(c)

	
Neither the execution and delivery of this Agreement, nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated hereby, nor the consummation of the transactions hereby contemplated conflict with, result in the breach of or accelerate the performance required by, any agreement to which it is a party;

	
  

	
(d)

	
The execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto or of its constating documents;

	
  

	
(e)

	
The Agreement constitutes a legal, valid and binding obligation of the Optionor;

	
  

	
(f)

	
The Property is accurately described in Schedule “A”, is in good standing under the laws of the jurisdiction in which it is located and is free and clear of all liens, charges and encumbrances;

	
  

	
(g)

	
The Optionor is the sole recorded and beneficial owner of the Property and has the exclusive right to enter into this Agreement and all necessary authority to transfer its interest in the Property in accordance with the terms of this Agreement;

	
  

	
(h)

	
No Person, firm or corporation has any proprietary or possessorty interest in the Property other than the Optionor, and no person, firm or corporation is entitled to any royalty or other payment in the nature of rent or royalty on any minerals, ores, metals or concentrates or any other such products removed from the Property other than the government of the state of Nevada pursuant to statute; notwithstanding any Federal, State or County royalties or net proceeds tax derived from mining operations.

  

9

  

	
  

	
(i)

	
Upon request by the Optionee, and at the sole cost of the Optionee, the Optionor shall deliver or cause to be delivered to the Optionee copies of all available maps and other documents and data in its possession respecting the Property. Nothing will be withheld, hidden, or kept from the Optionee, whether the data or information is held or not by the Optionor; and

	
  

	
(j)

	
Subject to performance by the Optionee of its obligations under Section 4, during the Option Period, the Optionor will keep the Property in good standing, free and clear of all liens, charges and encumbrances, will carry out all Mining Operations on the Property in a miner-like fashion if the Optionee elects to use the mining expertise and consulting services of the Optionor, will obtain all necessary licenses and permits as shall be necessary and will file all applicable work up to the legal limits as assessment work under the Mines and Mineral Act (Nevada)

10.           Representations, Optionies and Covenants of the Optionee

The Optionee represents, Options and covenants to and with the Optionor that:

	
  

	
(a)

	
The Optionee is a company duly organized validly existing and in good standing under the laws of Florida;

	
  

	
(b)

	
The Optionee has full power and authority to carry on its business and to enter into this Agreement and any agreement or instrument referred to or contemplated by this Agreement;

	
  

	
(c)

	
Neither the execution and delivery of this Agreement, nor any of the agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated conflict with, result in the breach of or accelerate the performance required by, any agreement to which it is a party;

	
  

	
(d)

	
The execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto or of its constating documents; and

	
  

	
(e)

	
This Agreement constitutes a legal, valid and binding obligation of the Optionee.

  

10

  

11.           Indemnity and Survival of Representation

The representation and Optionies hereinbefore set out are conditions on which the parties have relied in entering into this Agreement and shall survive the acquisition of any interest in the Property by the Optionee and each of the parties will indemnify and save the other harmless from all loss, damage, costs, actions and suits arising out of or in connection with any breach of any representation, option, covenant, agreement or condition made by them and contained in this Agreement.

The Optionor agrees to indemnify and save harmless the Optionee from any liability to which it may be subject arising from any Mining Operations carried out by the Optionor or at its direction on the Property. The Optionee agrees to indemnify and save harmless the Optionor from any liability to which it may be subject arising from any Mining Operations carried out by the Optionee or at its direction on the Property.

The Optionor agrees to indemnify and save harmless the Optionee from any liability arising form any and every kind of work done on or with respect to the Property prior to the signing of this Agreement (the “Prior Operations”). Without limiting the generality of the foregoing, Prior Operations includes all work capable of receiving assessment credits pursuant to The Mines and Minerals Act of Nevada and the work of assessment, geophysical, geochemical and geological surveys, studies and mapping, investigating, drilling, designing, examining equipping, improving, surveying, shaft sinking, raising, cross-cutting and drifting, searching for, digging, trucking, sampling, working and procuring minerals, ores and metals, in surveying and bringing any mineral claims to lease or patent, in doing all other work usually considered to be prospecting, exploration, development, a feasibility study, mining work, milling, concentration, beneficiation of ores and concentrates, as well as the separation and extraction of Mineral Products and all reclamation, restoration and permitting activities.

12.           Confidentiality

The parties hereto agree to hold in confidence all information obtained in confidence in respect of the Property or otherwise in connection with this Agreement other than in circumstances where a party has an obligation to disclose such information in accordance with applicable securities legislation, in which case such disclosure shall only be made after consultation with the other party.

  

11

  

13.           Notice

All notices, consents, demands and requests ( in this Section 13 called the “Communication”) required or permitted to be given under this Agreement shall be in writing and may be delivered personally sent by telegram, by telex or telecopier or other electronic means or may be forwarded by first class prepaid registered mail to the parties at their addresses first above written. Any Communication delivered personally or sent by telegram, telex or telecopier or other electronic means including email shall be deemed to have been given and received on the second business day next following the date of sending. Any Communication mailed as aforesaid shall be deemed to have been given and received on the fifth business day following the date it is posted, addressed to the parties at their addresses first above written or to such other address or addresses as either party may from time to time specify by notice to the other; provided, however, that if there shall be a mail strike, slowdown or other labor dispute which might effect delivery of the Communication by mail, then the Communication shall be effective only if actually delivered. For purposes of this agreement and as a definition of address the Optionor’s email shall be defined as geliopulos@sbcglobal.net and the Optionor’s telecopier number is 775-825-8216. The Optionee’s email shall be defined as info@grizzlygoldcorp.com and the Optionee’s telecopier number is 702-943-0233. Notice will be provided to each party should their respective email address change.

14.           Further Assurances

Each of the parties to this Agreement shall from time to time and at all times do all such further acts and execute and deliver all further deeds and documents as shall be reasonably required in order to fully perform and carry out the terms of this Agreement

15.           Entire Agreement

The parties hereto acknowledge that they have expressed herein the entire understanding and obligation of this Agreement and it is expressly understood and agreed that no implied covenant, condition, term or reservation, shall be read into this Agreement relating to or concerning any matter or operation provided for herein

16.           Proper Law and Arbitration

This Agreement will be governed by and construed in accordance with the laws of the State of Nevada and the laws of the United States of America. The parties hereto hereby irrevocably attorn to the jurisdiction of the Courts of Nevada. All disputes arising out of or in connection with this Agreement, or in respect of any defined legal relationship associated therewith or derived therefrom, shall be referred to and finally resolved by a sole arbitrator by arbitration under the rules of The Arbitration Act of Nevada.

  

12

  

17.           Enurement

This Agreement will ensure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

18.           After Acquired Properties

	
  

	
(i)

	
The parties covenant and agree, each with the other, that any and all After Acquired Properties shall be subject to the terms and conditions of this Agreement and shall be added to and deemed, for the purposes hereof, to be included in the Property. Any costs incurred by the Optionor in staking, locating, recording or otherwise acquiring any “After Acquired Properties” will be deemed to be Mining Operations for which the Optionor will be entitled to reimbursements as part of the Expenditures payable by the Optionee hereunder.

	
  

	
(ii)

	
Any additional claims agreed by the Optionee to be staked by the Optionor within 1 mile from the existing perimeter of the Property boundaries shall form party of this Agreement. The Optionee will reimburse the Optionor for the costs of staking the additional claims, unless the Optionee does not elect to have the additional claims subject to this Agreement.

19.           Default

Notwithstanding anything in this Agreement to the contrary if any party (a “Defaulting Party”) is in default of any requirement herein set forth the party affected by such default shall give written notice to the Defaulting Party specifying the default and the Defaulting Party shall not lose any rights under this Agreement, unless thirty (30) days after the giving of notice of default by the affected party the Defaulting Party has failed to take reasonable steps to cure the default by the appropriate performance and if the Defaulting Party fails within such period to take reasonable steps to cure any such default, the affected party shall be entitled to seek any remedy it may have on account of such default including, without limiting, termination of this Agreement.

20.           Payment

All references to monies herein shall be in US funds unless otherwise specified. The Optionee shall make payments for the Expenditures incurred by the Optionor no later than 30 days after the receipt of invoices delivered by the Optionee to do any acts or make any payments hereunder, and any act or payment or payments as shall be made hereunder shall not be construed as obligating the Optionee to do any further act or make any further payment or payments.

  

13

  

21.           Supersedes Previous Agreements

This Agreement supersedes and replaces all previous oral or written agreements, memoranda, correspondence or other communications between the parties hereto relating to the subject matter hereof.

IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement effective as of the 1st day May, 2011

Nevada Mine Properties II, Inc.

Per:  /s/ George Eliopulos

George Eliopulos, President

 

 

BCS Solutions, Inc.

Per:  /s/ Paul Strobel

Paul Strobel, President

  

14

  

SCHEDULE “A”

Sections 8, 9, 16 and 17, T36N, R31E, MDB&M, Humboldt County, Nevada

CLAIM NAME             CLAIMANT’S NAME                                                                NMC NUMBER

LB 1                                Nevada Mine Properties II                                                                920458

LB 3                                Nevada Mine Properties II                                                                920459

LB 4                                Nevada Mine Properties II                                                                920460

LB 5                                Nevada Mine Properties II                                                                920461

LB 6                                Nevada Mine Properties II                                                                920462

LB 7                                Nevada Mine Properties II                                                                920463

LB 8                                Nevada Mine Properties II                                                                920464

LB 15                              Nevada Mine Properties II                                                                920465

LB 17                              Nevada Mine Properties II                                                                920466

LB 19                              Nevada Mine Properties II                                                                920467

LB 21                              Nevada Mine Properties II                                                                920468

LB 31                              Nevada Mine Properties II                                                                920469

LB 32                              Nevada Mine Properties II                                                                920470

LB 33                              Nevada Mine Properties II                                                                920471

LB 34                              Nevada Mine Properties II                                                                920472

LB 35                              Nevada Mine Properties II                                                                920473

LB 36                              Nevada Mine Properties II                                                                920474

LB 38                              Nevada Mine Properties II                                                                920475

LB 40                              Nevada Mine Properties II                                                                920476

LB 42                              Nevada Mine Properties II                                                                920477

Vixen 1                            David C. Mough                                                                                939027

Vixen 2                            David C. Mough                                                                                939028

Vixen 3                            David C. Mough                                                                                939029

Vixen 4                            David C. Mough                                                                                939030

Vixen 5                            David C. Mough                                                                                939031

Vixen 6                            David C. Mough                                                                                939032

Vixen 7                            David C. Mough                                                                                958687

Vixen 8                            David C. Mough                                                                                958688

Vixen 9                            David C. Mough                                                                                958689

Vixen 10                          David C. Mough                                                                                958690

  

15

  

SCHEDULE “B”

“Net Smelter Return” shall mean the aggregate proceeds received by the Optionee from time to time from any smelter or other purchaser from the sale of any ores, concentrates, metals or any other material of commercial value produced by and from the Property after deducting from such proceeds the following charges only to the extent that they are not deducted by the smelter or other purchaser in computing the proceeds:

(a)           The cost of transportation of the ores, concentrates or metals from the Property to such smelter or other purchaser, including related insurance;

(b)           Smelting and refining charges including penalties; and

	
  

	
The Optionee shall reserve and pay to the Optionor a NSR equal to three (3%) percent

	
  

	
of Net Smelter Return.

	
  

	
Payment of NSR payable to the Optionor hereunder shall be made quarterly within thirty

	
  

	
(30) days after the end of each calendar quarter during which the Optionee receives

	
  

	
Net Smelter Returns in USD dollars or in kind bullion at the discretion of the Optionor.

	
  

	
Within (60) days after the end of each calendar quarter for which the NSR for such

	
  

	
year shall be audited by the Optionee and any adjustments in the payments of NSR

	
  

	
to the Optionor shall be made forthwith after completion of the audit. All payments of

	
  

	
NSR to the Optionor for a calendar year shall be deemed final and in full satisfaction of

	
  

	
all obligations of the Optionee in respect thereof if such payments or the calculations

	
  

	
thereof are not disputed by the Optionor of the same audited statement. The Optionee

	
  

	
shall maintain accurate records relevant to the determination of the NSR and the Optionor

	
  

	
or its authorized agent, shall be permitted the right to examine such records at all

	
  

	
reasonable times.

  

16

  

SCHEDULE “C”

	
Nevada State fees 30 claims @ $85/ claim

	
$2550.00

	
BLM filing fees 30 claims @ $140

	
$4,200.00

	
County filing fees 30 claims @ $10.50/claim

	
$315.00

	
Total

	
$7,065.00

 

 

17

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