Document:

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                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of _____ __,
2002, by and between SYNERGY TECHNOLOGIES CORPORATION, a Colorado corporation,
(the "COMPANY"), and FUSION CAPITAL FUND II, LLC (together with it permitted
assigns, the "BUYER"). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Common Stock Purchase
Agreement by and between the parties hereto dated as of June 20, 2002 (as
amended, restated, supplemented or otherwise modified from time to time, the
"PURCHASE AGREEMENT").

                                    WHEREAS:

         A. The Company has agreed, upon the terms and subject to the conditions
of the Purchase Agreement, to issue to the Buyer (i) up to Six Million Dollars
($6,000,000) of the Company's common stock, par value $0.002 per share (the
"COMMON STOCK") (the "PURCHASE SHARES"), and (ii) such number of shares of
Common Stock as is required pursuant to Section 4(f) of the Purchase Agreement
(the "COMMITMENT SHARES"); and

         B. 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 "1933 ACT"), and applicable state
securities laws.

         NOW, THEREFORE, in consideration of the premises 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, any transferee or assignee
thereof to whom a Buyer assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

                  b. "PERSON" means any person or entity including 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 1933 Act and pursuant to Rule
415 under the 1933 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 upon purchases
of the Available Amount under the Purchase

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Agreement (without regard to any limitation or restriction on purchases) 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, the Commitment
Shares or the Purchase Agreement 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 which the Company has agreed to file pursuant to Section 4(a) of
the Purchase Agreement with respect to the sale of the Registrable Securities.

         2.       REGISTRATION.

                  a. Mandatory Registration. The Company shall use reasonable
best efforts to keep the Registration Statement effective pursuant to Rule 415
promulgated under the 1933 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 Rule 144(k) promulgated under the 1933 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 1933 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) Trading 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 ten (10) Trading 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

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connection with such registration statement, which prospectus is to be filed
pursuant to Rule 424 promulgated under the 1933 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 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by the Registration Statement or any New
Registration Statement 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) Trading 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) Trading 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, ten (10) copies 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,

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and promptly prepare a supplement or amendment to such registration statement to
correct such untrue statement or omission, and deliver ten (10) copies 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 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
[_____________]. 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 the 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) Trading 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

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the Investor) confirmation that such registration statement has been declared
effective by the SEC in the form attached hereto as Exhibit A.

                  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 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, the members, the directors, officers,
partners, employees, agents, representatives of the Investor and each Person, if
any, who controls the Investor within the meaning of the 1933 Act or the
Securities Exchange Act of 1934, as amended (the "1934 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

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("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 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 1933 Act, the 1934 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 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
furnished in writing 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 1933 Act
or the 1934 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 1933 Act, the 1934 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

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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 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.

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                  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 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 1933 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 1933 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 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 1933 Act and the 1934 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 1933 Act and the 1934 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.

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,
including by merger or consolidation. The Investor may not assign its rights
under this Agreement without the written consent of the Company, other than to
an affiliate of the Investor controlled by Steven G. Martin or Joshua B.
Scheinfeld.

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         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.

         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) Trading 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:
                  Synergy Technologies Corporation
                  1689 Hawthorne Drive
                  Conroe, TX 77301
                  Telephone:        936-788-8220
                  Facsimile:        936-788-8221
                  Attention:        President

         With a copy to:
                  Ruffa & Ruffa
                  150 East 58th Street
                  New York, NY  10155
                  Telephone:        212-355-0606
                  Facsimile:        212-759-7696
                  Attention:        William P. Ruffa, Jr.

         If to the Investor:
                  Fusion Capital Fund II, LLC
                  222 Merchandise Mart Plaza, Suite 9-112
                  Chicago, IL 60654
                  Telephone:        312-644-6644
                  Facsimile:        312-644-6244
                  Attention:        Steven G.  Martin

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) Trading 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

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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.

                  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 Colorado 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 of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                                       10
<PAGE>

                  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.

                  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
<PAGE>

         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:

                                         SYNERGY TECHNOLOGIES CORPORATION

                                         By:______________________
                                         Name:
                                         Title:

                                         BUYER:

                                         FUSION CAPITAL FUND II, LLC
                                         BY: FUSION CAPITAL PARTNERS, LLC
                                         BY: SGM HOLDINGS CORP.

                                         By:_______________________
                                         Name: Steven G. Martin
                                         Title: President

                                       12
<PAGE>

                                    EXHIBIT A

                        TO REGISTRATION RIGHTS AGREEMENT

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[Date]

[TRANSFER AGENT]

----------------

----------------

RE: SYNERGY TECHNOLOGIES CORPORATION

Ladies and Gentlemen:

          We are counsel to SYNERGY TECHNOLOGIES CORPORATION, a Colorado
corporation (the "COMPANY"), and have represented the Company in connection with
that certain Common Stock Purchase Agreement, dated as of _________, 2002 (the
"PURCHASE AGREEMENT"), entered into by and between the Company and Fusion
Capital Fund II, LLC (the "BUYER") pursuant to which the Company has agreed to
issue to the Holder shares of the Company's Common Stock, par value $0.002 per
share (the "COMMON STOCK"), in an amount up to Six Million Dollars ($6,000,000)
(the "PURCHASE SHARES"), in accordance with the terms of the Purchase Agreement.
In addition, pursuant to the Stock Purchase Agreement, the Company issued to the
Buyer 424,041 shares of Common Stock (the "INITIAL] COMMITMENT SHARES") and in
connection with each purchase of Purchase Shares, the Company shall issue to the
Buyer additional shares of Common Stock up to an additional 202,020 shares of
Common Stock ("Additional Commitment Shares" and together with the Initial
Commitment Shares, "Commitment Shares"). Pursuant to the Purchase Agreement, the
Company also has entered into a Registration Rights Agreement, dated as of
______, 2002, 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
"1933 ACT"). In connection with the Company's obligations under the Purchase
Agreement and the Registration Rights Agreement, on _______, 2002, 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 1933 Act at 5:00 P.M.
on __________, 2002 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 1933 Act pursuant to the Registration Statement.

          The Buyer has confirmed it shall comply with all securities laws and
regulations applicable to it including applicable prospectus delivery
requirements upon sale of the Purchase Shares, and the Commitment Shares.

                                                     Very truly yours,

                                                     [Company Counsel]
                                                     By:____________________
CC: Fusion Capital Fund II, LLC

<PAGE>

                                    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<PAGE>

Date: June 3, 2002

William R. Engles, Jr.
5 Riverside Drive, #13-C
New York, New York 10023

         Re: Agreement to provide contract Consulting Services

Dear Mr. Engles:

         This letter ("Agreement") will confirm the understanding between
Synergy Technologies Corporation (the "Company") having its address at 1689
Hawthorne Drive, Conroe, Texas 77301-3284 and you ("Consultant") regarding your
engagement by the Company to provide certain consulting services to the Company
on the following terms and conditions:

         1. ENGAGEMENT. Consultant is hereby engaged by the Company to provide
consulting services to the Company consistent with those of a Chief Financial
Officer, pursuant to the terms set forth herein.

         2. TERM. The term of the Agreement shall be for thirteen weeks,
beginning June 3, 2002 and ending August 30, 2002, which may be extended by the
mutual agreement of the parties evidenced by a subsequent written agreement
signed by the parties.

         3. FEES.

              A. CASH PAYMENT: The Company shall pay the Consultant $2,500.00
              per week. If the Consultant works more than 45 hours in a week,
              the Cash Payment shall be increased by $62.50 for each hour
              exceeding 45. The Company shall also reimburse the Consultant for
              all out-of-pocket expenses associated with the work performed
              pursuant to this agreement. The Company shall pay the Cash Payment
              and expenses to the Consultant, in accordance with the Company's
              payroll schedule.

              B. STOCK PAYMENT: The Company shall pay the Consultant the
              equivalent of $3,500.00 per week in Common Stock. If the
              Consultant works more than 45 hours in a week, the Stock Payment
              shall be increased by $87.50 for each hour exceeding 45. The Stock
              Payment shall be paid at the same time as the Cash Payment, and
              the number of shares to be delivered shall be calculated based on
              the average of the closing prices for the stsock for the 5 trading
              days immediately preceeding the payment date. The shares delivered
              shall be registered and freely tradeable.

<PAGE>

              C. STOCK OPTIONS: Consultant shall receive options representing
              the right to purchase 100,000 shares of Company common stock
              (OILS.OB) at an exercise price of $0.72 per share. Consultant
              shall obtain the right to exercise these options ("vest") at a pro
              rata rate over the 13 week term of this agreement (i.e., a rate of
              approximately 7,692 options per week). The Stock Options shall
              have a term of 10 years. The shares underlying the Stock options
              shall be registered and freely tradeable.

              D. The Company shall not make any deductions or any withholdings
              from the compensation paid to Consultant. Consultant shall be
              responsible for any and all taxes, withholdings, penalties or
              claims of governmental entities arising from or related to the
              payment of compensation to Consultant.

         4. PERFORMANCE OF SERVICES. In performing his services hereunder,
Consultant shall undertake only such assignments as may be given to Consultant
from time to time by Barry Coffey, the Company's CEO.

         5. EXPENSES AND REIMBURSEMENT. The Company shall reimburse Consultant
for all reasonable business expenses, including, but not limited to, travel,
telephone, and other like expenses. Expenses shall be approved in advance by the
Company. Expense reports shall be submitted within two weeks of the date the
expense was incurred, and the Company shall reimburse the Consultant on the next
applicable pay period per the Company's payroll schedule. All expense reports
submitted by Consultant shall be supported by receipts or other documentation
showing the costs incurred and the purpose therefor. Consultant shall use
reasonable, good faith efforts to obtain reasonable rates for any such expenses
incurred.

         6. BOOKS AND RECORDS. Consultant shall maintain adequate and accurate
records, books and accounts regarding the performance of Services hereunder,
which shall be open to inspection by the Company upon request.

         7. INDEPENDENT CONTRACTOR. Consultant and the Company agree that
Consultant is not, for any purpose, an employee of the Company. To the contrary,
Consultant shall perform the services contemplated hereunder as an Independent
Contractor, and not as an employee or partner of the Company, in accordance with
the terms of this Agreement and all applicable laws and regulations, and the
parties hereto represent, warrant and agree that they have and will maintain
such a non-employment, non-partner relationship. Consultant acknowledges and
agrees that Consultant shall not be entitled to participate in or enjoy the
benefits of any retirement, pension, profit-sharing, group insurance, health
insurance or other similar plans which have been or may be instituted by the
Company or any of its affiliates for the benefit of their respective employees,
including without limitation, any Worker's Compensation or disability coverage.
Consultant understands that he is not a named or additional insured on any
general liability policy insuring the company or any of its affiliates.
Notwithstanding the foregoing, the Company agrees that it will provide the same
indemnification protections to Consultant as it provides to its officers under
the Company's certificate of incorporation, by-laws and/or other applicable plan
or policy and that it will use its best efforts to provide Consultant with
coverage

                                       2
<PAGE>

under its directors and officers insurance policies comparable to that provided
to the Company's officers.

         8. USE OF IDEAS AND MATERIALS. The Company and any of its affiliates
have full and exclusive right to make full and complete use of all
recommendations, concepts, ideas, plans, processes, inventions, trade secrets
and any other information (collectively "Ideas"), and all reports, analysis,
technical data, specifications, diagrams, designs, drawings, charts, programs,
systems, intellectual property (collectively "Materials") created, developed or
prepared by Consultant pursuant to, or in connection with, this Agreement, but
neither the Company nor its affiliates shall be under any obligation to make any
use of any such Ideas or Materials. Consultant shall not have the right to use
any such Ideas or Materials other than in connection with the performance of
Consultant's services hereunder without the prior written consent of the
Company.

         9. OWNERSHIP OF IDEAS AND MATERIALS. The Company and Consultant
expressly acknowledge and agree that it is the intention of the Parties hereto
that all rights, including copyright and other proprietary rights, in any and
all Ideas and Materials created, developed or prepared by Consultant pursuant to
or in connection with this Agreement shall vest in the Company as the party who
ordered or commissioned such Ideas and Materials, and further agree that all
such Ideas and Materials shall be considered "work made for hire" within the
meaning of the copyright laws of the United States of America. The Company is
entitled, as author of such Ideas and Materials, to the copyright therein, to
the right to seek, or not seek statutory registration of such copyright, to the
right to obtain other proprietary rights therein, and the right to make such
changes therein or uses thereof as the Company may determine in its sole
discretion. If, for any reason whatsoever, such Ideas and Materials are not
considered "work made for hire" under the copyright laws, then Consultant hereby
grants and assigns to the Company all of Consultant's right, title, and interest
in and to such Ideas and Materials and agrees to take whatever additional action
may reasonably be necessary, and sign whatever documents the Company may
reasonably require, in order to vest in the Company all right, title and
interest in and to such Ideas and Materials. This paragraph shall survive the
expiration or termination of this Agreement.

         10. INVENTIONS AND PATENTS. Consultant agrees that all reasonably
patentable inventions, innovations or improvements in the Company's products or
methods of conducting its business (including new contributions, improvements,
ideas and discoveries, whether patentable or not) conceived or made by
Consultant while he is employed by the Company, belong to the Company without
the payment of any further compensation to the Consultant. Consultant will
promptly disclose such inventions, innovations or improvements to the officers
of the Company. This paragraph shall survive the expiration or termination of
this Agreement.

         11. PROPERTY OF THE COMPANY. All books, documents, lists and records
pertaining to the Company's business (collectively the "Records"), whether
written, typed, printed or contained in any other form, including but not
limited to electronic form, are the sole and exclusive property of the Company.
Upon termination of this Agreement, Consultant shall promptly return to the
Company all records and copies thereof that are in the Consultant's possession
or that Consultant has removed from the Company's premises.

                                       3
<PAGE>

         12. NO CONFLICTS. Consultant represents and warrants that (a) all Ideas
and Materials provided to the Company by Consultant hereunder shall be original
with Consultant and shall not infringe the statutory or common law copyright,
trademark, patent or other rights of third parties; and (b) that there does not
exist any contract, agreement or arrangement with any third party which would
prevent or interfere with Consultant from entering into this Agreement or
rendering any of the services contemplated to be provided pursuant hereto. This
paragraph shall survive the expiration or termination of this Agreement.

         13. TERMINATION OF CONSULTANCY.

              A.   TERMINATION BY THE COMPANY FOR CAUSE: The Company may
                   terminate this agreement in the event of: (1) Consultant's
                   conviction for, or plea of guilty to, a felony, (2)
                   Consultant's willful misconduct in the course of performing
                   his duties to the Company, or (3) Consultant's gross neglect
                   of his duties to the Company. Any Stock Options that have not
                   yet "vested" as of the date of Termination shall expire upon
                   Termination for Cause. Stock Options that have vested shall
                   be exerciseable for 12 months following Termination. The
                   Consultant shall not be entitled to any Cash Payment or Stock
                   Payment following such Termination.

              B.   TERMINATION BY THE COMPANY OTHER THAN FOR CAUSE: The Company
                   may terminate this agreement for any reason upon two weeks
                   written notice to the Consultant. Any Stock Options that have
                   not yet "vested" as of the date of Termination shall vest as
                   of such date, and all Stock Options shall be exerciseable for
                   the remainder of their term. The Consultant shall continue to
                   receive the Cash Payment and Stock Payment for three weeks
                   following the date of Termination (i.e. five weeks from
                   notice).

              C.   TERMINATION BY THE CONSULTANT FOR GOOD REASON: The Consultant
                   may terminate this agreement in the event: (1) Barry Coffey
                   is no longer the CEO of the Company, (2) the Company asks the
                   Consultant to work primarily outside the New York City
                   metropolitan area, (3) the Company asks the Consultant to
                   perform any illegal act, or (4) the Company assigns the
                   Consultant duties that are inconsistent with those of a CFO.
                   Any Stock Options that have not yet "vested" as of the date
                   of Termination shall vest as of such date, and all Stock
                   options shall be exerciseable for the remainder of their
                   term. The Consultant shall continue to receive the Cash
                   Payment and the Stock Payment for three weeks following the
                   date of Termination.

              D.   TERMINATION BY THE CONSULTANT OTHER THAN FOR GOOD REASON: The
                   Consultant may terminate this agreement for any reason upon
                   two weeks written notice to the Company. Any Stock Options
                   that have not yet "vested" as of the date of Termination
                   shall expire upon Termination. Stock Options that have vested
                   shall be exerciseable for 12 months following Termination.

                                       4
<PAGE>

                   The Consultant shall not be entitled to any Cash Payment or
                   Stock Payment following such Termination.

         14. CONFIDENTIALITY, NON-DISCLOSURE AND NON-COMPETE.

              A.   Consultant understands that the Company's business and
                   operations (except to the extent that such business and
                   operations have become a matter of public record) are highly
                   confidential. Since the Company is a public corporation,
                   improper disclosures of the Company's business plans or
                   operations could have adverse consequences for the Company,
                   its officers, employees and shareholders. "Confidential
                   Information" means all aspects of the Company's business
                   which have not been made a matter of public record.

              B.   Consultant agrees that Consultant will not disclose to any
                   third person any Confidential Information unless compelled to
                   do so by law, subpoena, or other appropriate legal process.
                   This paragraph shall survive the expiration or termination of
                   this Agreement.

              C.   Consultant agrees that Consultant will not use any
                   Confidential Information for the benefit of himself
                   personally or for the benefit of any third party who is not
                   affiliated with the Company.

              D.   Consultant agrees that for a period of one year after the
                   termination of this agreement, he will not engage in any
                   business activity, whether for his own benefit or any third
                   party, that is reasonably likely to involve the Consultant's
                   use of or reliance upon Confidential Information.

              E.   Consultant further agrees that during the time period he
                   provides consulting services for the Company and for a period
                   of one year after the termination of this Agreement,
                   Consultant will not directly or indirectly, request, assist
                   or advise any Customer, competitor or other person having
                   business dealings with the Company to withdraw from, curtail,
                   cancel or modify such business dealings.

              F.   Consultant further agrees that for a period of one year after
                   the termination of this Agreement, he will not solicit,
                   encourage or bring about the resignation of or departure of
                   any employees of the Company for the purpose of working with
                   or for, or otherwise rendering any services to any person any
                   person or company by whom Consultant is then employed, any
                   person with whom Consultant has any contractual relationship,
                   or any person or entity in which Consultant has a financial
                   interest.

         15. EQUITABLE AND LEGAL REMEDIES. Consultant understands and agrees
that damages alone will be an inadequate remedy for a breach or violation of any
provision of the Agreement.

                                       5
<PAGE>

Accordingly, in addition to any other rights that Company may have as a result
of such breach or violation, the Company may obtain enforcement of the
provisions of the Agreement by preliminary and permanent injunction, specific
performance and other equitable relief. The Company shall be permitted to and
Consultant hereby consents to, the issuance of an injunction compelling the cure
of such default or breach and the specific performance of Consultant's
obligations under this Agreement, in addition to an action for damages or other
relief which may be available to the Company, in law or equity.

         16. CHOICE OF LAW AND FORUM. The Agreement, including all issues of
performance hereunder, shall be governed by the law of the State of New York.
Further, any actions to enforce any rights or remedies granted by the Agreement
shall be brought in the United States District Court for the Southern District
of Manhattan.

         17. INTEGRATED CONTRACT. The Agreement contains the entire agreement
between the parties and supersedes any and all prior agreements, whether written
or oral. The Agreement shall not be amended or modified in any manner, except by
an instrument in writing executed by both parties.

         18. MISCELLANEOUS.

              A. Any notices required or permitted to be given hereunder by
either party to the other shall be sufficient if in writing and if delivered
personally or by certified mail, return receipt requested. Mailed notices shall
be addressed to the parties at the following addresses:

                 Synergy Technologies Corporation
                 1689 Hawthorne Drive
                 Conroe, TX 77301-3284

                 William R. Engles, Jr.
                 5 Riverside Drive, #13-C
                 New York, NY 10023

              B. Neither the Agreement nor any rights or duties hereunder may be
assigned or delegated by either party unless the other party consents in
writing.

              C. Except as otherwise provided, the Agreement shall be binding on
and inure to the benefit of the parties and their respective heirs, personal
representatives, successors and assigns.

                                        Sincerely yours,

                                        SYNERGY TECHNOLOGIES CORPORATION
                                        1689 Hawthorne Drive
                                        Conroe, Texas 77301-3284

                                       6
<PAGE>

                                         By:
                                             --------------------------------
                                         Title:
                                                -----------------------------

                                         Accepted and Agreed:

                                          -----------------------------------
                                          By: William R. Engles
                                          Title: Consultant
                                          5 Riverside Drive, #13-C
                                          New York, New York 10023

                                       7

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