Document:

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EXHIBIT 10.2

                     PATENT AND TRADEMARK SECURITY AGREEMENT

                             Date: December 12, 2007

DEBTOR:           Reclamation Consulting  and Applications, Inc.

SECURED PARTY:    Pala Investments Holdings Limited

                                    RECITALS
                                    --------

         A. The Debtor and the Secured Party are parties to a Secured
Convertible Debenture of even date herewith (as the same may be amended,
modified, extended or cancelled from time to time, the "DEBENTURE") pursuant to
which the Secured Party has agreed to extend to the Debtor certain credit
accommodations.

         B. It is a condition precedent to the obligation of the Secured Party
to extend credit accommodations pursuant to the terms of the Debenture that this
Patent and Trademark Security Agreement (this "AGREEMENT") be executed and
delivered by the Debtor.

         NOW, THEREFORE, in consideration of the credit accommodations which
have been or may be extended to the Debtor and for other good and valuable
consideration, the Debtor hereby covenants and agrees with the Secured Party as
follows:

         1. DEFINED TERMS. All terms defined in the Recitals hereto or in the
Debenture that are not otherwise defined herein shall have the meanings given
them therein. In addition, the following terms have the meanings set forth
below:

                  "AFFILIATE" has the meaning assigned in Subsection 3(d).

                  "PATENTS" means all of the Debtor's right, title and interest
         in and to patents and patent applications, including, without
         limitation, the inventions and improvements described and claimed
         therein, all patentable inventions and those patents and patent
         applications listed on Exhibit A attached hereto and made a part hereof
         and all patents and the reissues, divisions, continuations, renewals,
         extensions and continuations-in-part of any of the foregoing, and all
         income, royalties, damages and payments now or hereafter due and/or
         payable under or with respect to any of the foregoing, including,
         without limitation, damages and payments for past, present and future
         infringements of any of the foregoing and the right to sue for past,
         present and future infringements of any of the foregoing, all as
         presently existing or hereafter arising or acquired.

<PAGE>

                  "SECURITY INTEREST" has the meaning given in Section 2.

                  "TRADEMARKS" means all of the Debtor's right, title and
         interest in and to: (i) trademarks, trade names, corporate names,
         company names, business names, fictitious business names, trade styles,
         service marks, collective membership marks, logos, other business
         identifiers, prints and labels on which any of the foregoing have
         appeared or may appear, all registrations and recordings thereof, and
         all applications (other than "intent to use" applications until a
         verified statement of use is filed with respect to such applications)
         filed in connection therewith, including, without limitation, the
         trademarks and applications listed on Exhibit B attached hereto and
         made a part hereof; (ii) licenses, fees or royalties with respect to
         the foregoing; (iii) the right to sue for past, present and future
         infringement, dilution and damages therefore; and (iv) licenses
         thereunder; all as presently existing or hereafter arising or acquired;
         and all rights corresponding to any of the foregoing throughout the
         world and the goodwill of the Debtor's business connected with the use
         of, and symbolized by, the foregoing.

         2. SECURITY INTEREST. To secure the complete and timely payment and
satisfaction of the Indebtedness, the Debtor hereby irrevocably pledges and
assigns to, and grants the Secured Party a security interest (the "SECURITY
INTEREST") with power of sale to the extent permitted by law, in the Patents and
in the Trademarks. As set forth in the Debenture, the Security Interest is
coupled with a security interest in the Collateral. This Agreement grants only
the Security Interest herein described, is not intended to and does not affect
any present transfer of title of any trademark registration or application and
makes no assignment and grants no right to assign or perform any other action
with respect to any intent to use trademark application, unless such action is
permitted under 15 U.S.C. ss. 1060.

         3. REPRESENTATIONS, WARRANTIES AND AGREEMENTS. The Debtor represents,
warrants and agrees as follows:

                  (a) EXISTENCE; AUTHORITY. The Debtor is a valid and subsisting
         corporation duly incorporated and in good standing under the laws of
         the State of Colorado, and the Debtor has no subsidiaries. This
         Agreement has been duly authorized by all necessary corporate action on
         the part of the Debtor and constitutes a valid obligation of the Debtor
         legally binding upon it and enforceable in accordance with its terms.
         The execution, delivery and performance of this Agreement by the Debtor
         have been duly authorized by all necessary corporate action and do not
         and will not violate the provisions of, or constitute a default under,
         any presently applicable law or its Articles of Incorporation, Bylaws,
         any other organizational document or any agreement or instrument to
         which the Debtor is a party. The authorization, execution, delivery and
         performance of this Agreement do not require notification to,
         registration with, or consent or approval by, any federal, state or
         local regulatory body or administrative agency.

                                      -2-
<PAGE>

                  (b) PATENTS. Exhibit A accurately lists all Patents owned or
         controlled by the Debtor as of the date hereof, or to which the Debtor
         has a right as of the date hereof to have assigned to it, and
         accurately reflects the existence and status of applications and
         letters patent pertaining to the Patents as of the date hereof. If
         after the date hereof, the Debtor owns, controls or has a right to have
         assigned to it any Patents not listed on Exhibit A, or if Exhibit A
         ceases to accurately reflect the existence and status of applications
         and letters patent pertaining to the Patents, then the Debtor shall
         within 60 days provide written notice to the Secured Party with a
         replacement Exhibit A, which upon acceptance by the Secured Party shall
         become part of this Agreement. No Patent has been adjudged invalid or
         unenforceable by a court of competent jurisdiction nor has any such
         Patent been cancelled, in whole or in part and each such Patent is
         presently subsisting. The Debtor is the sole and exclusive owner of the
         entire and unencumbered right, title and interest in and to each
         Patent, free and clear of any liens, charges and encumbrances other
         than Permitted Liens, including without limitation, shop rights and
         covenants by the Debtor not to sue third persons. The Debtor has no
         notice of any suits or actions commenced or threatened with reference
         to any Patent.

                  (c) TRADEMARKS. Exhibit B accurately lists all Trademarks
         owned or controlled by the Debtor as of the date hereof and accurately
         reflects the existence and status of Trademarks and all applications
         and registrations pertaining thereto as of the date hereof; provided,
         however, that Exhibit B need not list common law marks (i.e.,
         Trademarks for which there are no applications or registrations) which
         are not material to the Debtor's business(es). If after the date
         hereof, the Debtor owns or controls any Trademarks not listed on
         Exhibit B (other than common law marks which are not material to the
         Debtor's business(es)), or if Exhibit B ceases to accurately reflect
         the existence and status of applications and registrations pertaining
         to the Trademarks, then the Debtor shall promptly provide written
         notice to the Secured Party with a replacement Exhibit B, which upon
         acceptance by the Secured Party shall become part of this Agreement. No
         Trademark has been adjudged invalid or unenforceable by a court of
         competent jurisdiction nor has any such Trademark been cancelled, in
         whole or in part and each such Trademark is presently subsisting. The
         Debtor is the sole and exclusive owner of the entire and unencumbered
         right, title and interest in and to each Trademark, free and clear of
         any liens, charges and encumbrances other than Permitted Liens,
         including without limitation, shop rights and covenants by the Debtor
         not to sue third persons. The Debtor has no notice of any suits or
         actions commenced or threatened with reference to any Trademark.

                  (d) AFFILIATES. As of the date hereof, no affiliate of the
         Debtor (each, an "Affiliate") owns, controls, or has a right to have
         assigned to it any items that would, if such item were owned by the
         Debtor, constitute Patents or Trademarks. If after the date hereof any
         Affiliate owns, controls, or has a right to have assigned to it any
         such items, then the Debtor shall promptly either: (i) cause such
         Affiliate to assign all of its rights in such item(s) to the Debtor; or
         (ii) notify the Secured Party of such item(s) and cause such Affiliate
         to execute and deliver to the Secured Party a patent and trademark
         security agreement substantially in the form of this Agreement.

                                      -3-
<PAGE>

                  (e) TITLE. The Debtor (i) will have, at the time the Debtor
         acquires any rights in Patents or Trademarks hereafter arising,
         absolute title to each such Patent or Trademark free and clear of all
         liens and encumbrances, and (ii) will keep all Patents and Trademarks
         free and clear of all liens and encumbrances.

                  (f) NO SALE. Except as permitted in the Debenture, the Debtor
         will not assign, transfer, encumber or otherwise dispose of the Patents
         or Trademarks, or any interest therein, without the Secured Party's
         prior written consent.

                  (g) DEFENSE. The Debtor will at its own expense and using
         commercially reasonable efforts, protect and defend the Patents and
         Trademarks against all claims or demands of all persons and entities.

                  (h) MAINTENANCE. The Debtor agrees to maintain the quality of
         any and all products in connection with which the Patents and
         Trademarks are used, consistent with commercially reasonable business
         practices. Upon the occurrence of an Event of Default, the Debtor
         agrees that the Secured Party, or a conservator appointed by the
         Secured Party, shall have the right to establish such additional
         product quality controls as the Secured Party, or said conservator, in
         its reasonable judgment, may deem necessary to assure maintenance of
         the quality of products sold by the Debtor in connection with the
         Patents and Trademarks. The Debtor will at its own expense maintain the
         Patents and the Trademarks to the extent reasonably advisable in its
         business including, but not limited to, filing all applications to
         obtain letters patent or trademark registrations and all affidavits,
         maintenance fees, annuities, and renewals possible with respect to
         letters patent, trademark registrations and applications therefor. The
         Debtor covenants that it will not abandon nor fail to pay any
         maintenance fee or annuity due and payable on any Patent or Trademark,
         nor fail to file any required affidavit or renewal in support thereof,
         without first providing the Secured Party: (i) sufficient written
         notice, of at least 30 days, to allow the Secured Party to timely pay
         any such maintenance fees or annuities which may become due on any
         Patents or Trademarks, or to file any affidavit or renewal with respect
         thereto, and (ii) a separate written power of attorney or other
         authorization to pay such maintenance fees or annuities, or to file
         such affidavit or renewal, should such be necessary or desirable.

                  (i) SECURED PARTY'S RIGHT TO TAKE ACTION. If the Debtor fails
         to perform or observe any of its covenants or agreements set forth in
         this Section 3, and if such failure continues for a period of ten (10)
         calendar days after the Secured Party gives the Debtor written notice
         thereof (or, in the case of the agreements contained in subsection (h),
         immediately upon the occurrence of such failure, without notice or
         lapse of time), or if the Debtor notifies the Secured Party that it
         intends to abandon a Patent or Trademark, the Secured Party may (but
         need not) perform or observe such covenant or agreement or take steps
         to prevent such intended abandonment on behalf and in the name, place

                                      -4-
<PAGE>

         and stead of the Debtor (or, at the Secured Party's option, in the
         Secured Party's own name) and may (but need not) take any and all other
         actions which the Secured Party may reasonably deem necessary to cure
         or correct such failure or prevent such intended abandonment.

                  (j) COSTS AND EXPENSES. Except to the extent that the effect
         of such payment would be to render any loan or forbearance of money
         usurious or otherwise illegal under any applicable law, the Debtor
         shall pay the Secured Party on demand the amount of all moneys expended
         and all costs and expenses (including reasonable attorneys' fees and
         disbursements) incurred by the Secured Party in connection with or as a
         result of the Secured Party's taking action under subsection (i) or
         exercising its rights under Section 6, together with interest thereon
         from the date expended or incurred by the Secured Party at the penalty
         rate described in subsection 7.2.3 of the Debenture.

                  (k) POWER OF ATTORNEY. To facilitate the Secured Party's
         taking action under subsection (i) and exercising its rights under
         Section 6, the Debtor hereby irrevocably appoints (which appointment is
         coupled with an interest) the Secured Party, or its delegate, as the
         attorney-in-fact of the Debtor with the right (but not the duty) from
         time to time to create, prepare, complete, execute, deliver, endorse or
         file, in the name and on behalf of the Debtor, any and all instruments,
         documents, applications, financing statements, and other agreements and
         writings required to be obtained, executed, delivered or endorsed by
         the Debtor under this Section 3, or, necessary for the Secured Party,
         after an Event of Default, to enforce or use the Patents or Trademarks
         or to grant or issue any exclusive or non-exclusive license under the
         Patents or Trademarks to any third party, or to sell, assign, transfer,
         pledge, encumber or otherwise transfer title in or dispose of the
         Patents or Trademarks to any third party. The Debtor hereby ratifies
         all that such attorney shall lawfully do or cause to be done by virtue
         hereof. The power of attorney granted herein shall terminate upon the
         termination of the Debenture as provided therein and the payment and
         performance of the Indebtedness.

         4. DEBTOR'S USE OF THE PATENTS AND TRADEMARKS. The Debtor shall be
permitted to control and manage the Patents and Trademarks, including the right
to exclude others from making, using or selling items covered by the Patents and
Trademarks and any licenses thereunder, in the same manner and with the same
effect as if this Agreement had not been entered into, so long as no Event of
Default occurs and remains uncured.

         5. EVENTS OF DEFAULT. Each of the following occurrences shall
constitute an event of default under this Agreement (herein called "EVENT OF
DEFAULT"): (a) an Event of Default, as defined in the Debenture, shall occur; or
(b) the Debtor shall fail promptly to observe or perform any covenant or
agreement herein binding on it; or (c) any of the representations or warranties
contained in Section 3 shall prove to have been incorrect in any material
respect when made.

         6. REMEDIES. Upon the occurrence of an Event of Default, the Secured
Party may, at its option and from time to time, exercise any one or more of the
following rights or remedies:

                                      -5-
<PAGE>

                  (a) The Secured Party may exercise any or all remedies
         available under the Debenture.

                  (b) The Secured Party may sell, assign, transfer, pledge,
         encumber or otherwise dispose of the Patents and Trademarks.

                  (c) The Secured Party may enforce the Patents and Trademarks
         and any licenses thereunder, and if the Secured Party shall commence
         any suit for such enforcement, the Debtor shall, at the request of the
         Secured Party, do any and all lawful acts and execute any and all
         proper documents required by the Secured Party in aid of such
         enforcement.

         7. NOTICES. All notices, requests, demands and other communications to
be given hereunder shall be in writing and shall be deemed to have been duly
given on the date of personal service or transmission by fax if such
transmission is received during the normal business hours of the addressee, or
on the first business day after sending the same by overnight courier service or
by telegram, or on the third business day after mailing the same by first class
mail, or on the day of receipt if sent by certified or registered mail,
addressed as set forth below, or at such other address as any party may
hereafter indicate by notice delivered as set forth in this Section 7:

         If to the Debtor:                  Reclamation Consulting and
                                            Applications, Inc.
                                            940 Calle Amanecer, Suite E
                                            San Clemente, CA 92673
                                            Attn:    Mr. Gordon W. Davies
                                                     President

         With a copy (which shall
         not constitute notice) to:         August Law Group, P.C.
                                            19200 Von Karman, Suite 900
                                            Irvine, California  92614
                                            Attn:    Kenneth S. August, Esquire
                                                     President

         If to the Secured Party:           Pala Investments Holdings Limited
                                            12 Castle Street
                                            St. Helier
                                            Jersey
                                            JE2 3RT
                                            Channel Islands
                                            Attn:    Ms. Susan Garrod
                                            Director

                                      -6-
<PAGE>

         With a copy (which shall
          not constitute notice) to:        Pala Investments AG
                                            Dammstrasse 19
                                            6300 Zug
                                            Switzerland
                                            Attn:    Mr. Jan Castro,
                                            Managing Director

         8. NO DUTIES OWED BY SECURED PARTY. The Debtor acknowledges and agrees
that the Secured Party shall not be obligated to preserve any rights the Debtor
may have against prior parties, to realize on the Patents and Trademarks at all
or in any particular manner or order, or to apply any cash proceeds of Patents
and Trademarks in any particular order of application. The Secured Party has not
made any representations or warranties with respect to this Agreement.

         9. GENERAL.

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

                  (b) TIME. Time is of the essence in the performance of this
         Agreement.

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

                  (d) ASSIGNMENT. The Debtor may not assign this Agreement or
         its interest herein or any part hereof except with the prior written
         consent of the Secured Party. The Secured Party may assign the Loan or
         this Agreement, or its interest in the Loan or this Agreement or any
         part thereof upon ten (10) days' written notice to the Debtor and
         provided that (i) the assignee is an affiliated or associated company
         of the Debtor, or a successor company to the Debtor following any
         re-domestication, asset sale, merger, consolidation or other
         reorganization, and (ii) agrees to be bound by the terms of this
         Agreement to the extent of such assignment.

                  (e) SURVIVAL. All representations and warranties contained in
         this Agreement or in any other agreement between the Debtor and the
         Secured Party shall survive the execution, delivery and performance of
         this Agreement and the creation and payment of the Indebtedness.

                                      -7-
<PAGE>

                  (f) CUMULATIVE REMEDIES. All rights and remedies of the
         Secured Party shall be cumulative and may be exercised singularly or
         concurrently, at the Secured Party's option, and the exercise or
         enforcement of any one such right or remedy shall neither be a
         condition to nor bar the exercise or enforcement of any other.

                  (g) GOVERNING LAW AND VENUE. This Agreement shall be governed
         by and construed in accordance with the internal laws of the State of
         California applicable to the performance and enforcement of contracts
         made within such state, without giving effect to the law of conflicts
         of laws applied thereby. In the event that any dispute shall occur
         between the parties arising out of or resulting from the construction,
         interpretation, enforcement or any other aspect of this Agreement, the
         parties hereby agree to accept the exclusive jurisdiction of the Courts
         of the State of California sitting in and for the County of Orange.

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

                  (i) PARTIES IN INTEREST. This Agreement inures to the benefit
         of and is binding on the parties hereto and their respective successors
         and permitted assigns and shall take effect when signed by the Debtor
         and delivered to the Secured Party, and the Debtor waives notice of the
         Secured Party's acceptance hereof. The Secured Party may execute this
         Agreement if appropriate for the purpose of filing, but the failure of
         the Secured Party to execute this Agreement shall not affect or impair
         the validity or effectiveness of this Agreement.

                  (j) HEADINGS AND MARGINAL REFERENCES. The division of this
         Agreement into sections, subsections, paragraphs and subparagraphs and
         the insertion of headings are for convenience of reference only and do
         not affect the construction or interpretation of this Agreement.

                  (k) AMENDMENTS. This Agreement may be amended, waived,
         discharged or terminated only with the agreement of the party against
         whom enforcement of the amendment, waiver, discharge or termination is
         sought and only in writing signed by both parties to this agreement and
         subject to the same governing law and venue as stated in Section 9(e)
         hereof. The Security Interest can be released only explicitly in a
         writing signed by the Secured Party.

                  (l) COUNTERPART AND FAX EXECUTION. This Agreement may be
         executed in two or more counterparts and by fax transmission, each of
         which will be deemed to be an original and all of which will constitute
         one agreement, effective as of the date given above.

                                      -8-
<PAGE>

                  (m) ENTIRE AGREEMENT. This Agreement, together with the
         Exhibits referred to herein which are incorporated herein by this
         reference, and the agreements referred to herein, supersedes all prior
         agreements and understandings and shall constitute the entire agreement
         between the parties hereto with respect to the transactions
         contemplated hereby.

                  IN WITNESS WHEREOF, the parties have executed this Patent and
Trademark Security Agreement as of the date written above.

DEBTOR:                                   SECURED PARTY:

RECLAMATION CONSULTING AND                PALA INVESTMENTS HOLDINGS LIMITED
APPLICATIONS, INC.

By: /s/ MICHAEL DAVIES                    By: /s/ Susan Garrod
    ----------------------------              ------------------------------
Name: MICHAEL C. DAVIES                   Name: Susan Garrod
Its: Chief Executive Officer              Its: Executive Director

STATE OF California    )
                       ) ss.
COUNTY OF Orange       )

         The foregoing instrument was acknowledged before me this 12 day of
December, 2007, by Michael C. Davies, the Chief Executive Officer of RECLAMATION
CONSULTING AND APPLICATIONS, INC., a Colorado corporation, on behalf of the
corporation.

         [NOTARY PUBLIC SEAL]                   /S/ M. TARANTINO
                                                -------------------------
                                                Notary Public

ST. HELIER
JERSEY                        Thursday, December 13, 2007
BRITISH CHANNEL ISLANDS

I, ROBERT HARMAN, Notary Public in and for the island of Jersey
HEREBY CERTIFY that the annexed document has been signed
for the uses and purposes mentioned in the instrument by
SUSAN CLAIRE GARROD who is known by me to be a director of
Pala Investments Holdings Limited and with whose usual signature I am well
familiar.

GIVEN at St. Helier, on the day and year above-written under my hand and
offical seal.
                                                                  December, 2007
                                               PALA INVESTMENTS HOLDINGS LIMITED

/s/ Robert Harman                         [NOTARY PUBLIC SEAL]
------------------------
Notary Public
3rd Floor, Mielles House, La rue des Mielles, St. Helier, Jersey JE2 3QD,
Challel Islands
My faculty endures for life                       07/005000

                                      -9-
<PAGE>
<TABLE>
<S>     <C>

                                                             EXHIBIT A

                                                  PATENTS AND PATENT APPLICATIONS
                                                  -------------------------------
                                                                                                                          PROPERTY
     OFFICIAL NO.                          TITLE                         CASE STATUS                  COUNTRY               TYPE
------------------------ ------------------------------------------ ----------------------- ---------------------------- -----------
1525270                  Release Agent Formulas And Methods         Abandoned by client     European Patent Office       Patent
2896/DELNP/2004          Release Agent Formulas And Methods         Application filed       India                        Patent
PA/a/2006/007233         Release Agent Formulas And Methods         Application filed       Mexico                       Patent
PCT/US04/05953           Release Agent Formulas And Methods         Application filed       Patent Cooperation Treaty    Patent
6902606                  Release Agent Formulas And Methods         Issued                  United States of America     Patent
To Be Filed              Release Agent Formulas And Methods         In Process              United States of America     Patent

                                                               A-1
<PAGE>

                                                             EXHIBIT B

                                                     TRADEMARKS, SERVICE MARKS
                                                  AND COLLECTIVE MEMBERSHIP MARKS
                                                                                                                          PROPERTY
     OFFICIAL NO.                          TITLE                         CASE STATUS                  COUNTRY               TYPE
------------------------ ------------------------------------------ ----------------------- ---------------------------- -----------
10/25053                 ALDEROX KR7                                Registered              Australia                    Trademark
003775822                ALDEROX KR7                                Registered              European Community           Trademark
1315205                  ALDEROX KR7                                Application filed       India                        Trademark
719884                   ALDEROX KR7                                Registered              New Zealand                  Trademark
3022028                  ALDEROX KR7                                Registered              United States of America     Trademark
1025054                  ALDEROX TSR                                Registered              Australia                    Trademark
003778156                ALDEROX TSR                                Registered              European Community           Trademark
1315206                  ALDEROX TSR                                Application filed       India                        Trademark
719883                   ALDEROX TSR                                Registered              New Zealand                  Trademark
2905209                  ALDEROX                                    Registered              United States of America     Trademark
2905208                  ASA 12                                     Registered              United States of America     Trademark
3109303                  B20-POWER                                  Registered              United States of America     Trademark

                                                    COLLECTIVE MEMBERSHIP MARKS
                                                    ---------------------------

                                                                NONE

                                  UNREGISTERED MARKS (FOR WHICH NO APPLICATIONS HAVE BEEN FILED)
                                  --------------------------------------------------------------

                                                               NONE
</TABLE>
                                                               B-1
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                                      B-2<PAGE>

EXHIBIT 10.3

                             SUBORDINATION AGREEMENT

         THIS SUBORDINATION AGREEMENT (this "Agreement"), dated as of December
__, 2007, is made and given by [__________________], (the "Junior Creditor") in
favor of PALA INVESTMENTS HOLDINGS LIMITED, a [____________________] limited
liability company (the "Senior Creditor").

                                    RECITALS:

         A. Reclamation Consulting and Applications, Inc., a Colorado
corporation (the "Borrower"), is or may become indebted to the Junior Creditor
by reason of loans or other extensions of credit made or to be made by the
Junior Creditor to the Borrower.

         B. The Borrower is now, or may hereafter be, indebted to the Senior
Creditor as a result of the advance of monies and other extensions of credit by
the Senior Creditor to the Borrower under agreements or arrangements for the
extension of financial accommodations now, heretofore or hereafter in effect.

         C. The Junior Creditor acknowledges that the loan or advance of monies
or other extensions of any financial accommodation or credit to the Borrower by
the Senior Creditor is of value to the Junior Creditor.

         NOW, THEREFORE, for good and valuable consideration, receipt of which
is hereby acknowledged by the Junior Creditor, and in order to induce the Senior
Creditor to make loans or extend credit or any other financial accommodation to
or for the benefit of the Borrower, or to grant such renewals or extension
thereof as the Senior Creditor may deem advisable, and to better secure the
Senior Creditor in respect of the foregoing, the Junior Creditor hereby agrees
as follows:

         Section 1. DEFINITIONS, RULES OF CONSTRUCTIONS.

                  1(a) For purpose of this Agreement, the following terms shall
         have the following meanings:

                  "BANKRUPTCY CODE" shall mean 11 U.S.C. 101 et seq., as amended
         from time to time.

                  "BORROWER" shall mean Reclamation Consulting and Applications,
         Inc. and any successor (including a debtor-in-possession under the
         Bankruptcy Code), assignee, receiver, trustee or estate thereof.

<PAGE>

                  "DEFAULT" shall mean any event which with the giving of notice
         or lapse of time, or both, would become an Event of Default.

                  "EVENT OF DEFAULT" shall mean (i) any failure of the Borrower
         to pay when due (whether at the date scheduled therefor or earlier upon
         acceleration) or when demanded (with respect to any obligation payable
         on demand) any item constituting Senior Debt, (ii) the occurrence of
         any other event constituting a default under the terms of any of the
         Senior Debt, or (iii) any event shall occur or condition shall exist
         and shall continue for more than the period of grace, if any,
         applicable thereto and shall have the effect of causing, or permitting
         the Senior Creditor or any subsequent holder of Senior Debt to cause,
         any item of Senior Debt to become due prior to its stated maturity or
         to realize upon any collateral given as security therefor.

                  "JUNIOR CREDITOR" shall mean [________________] and any
         successor thereto (including a debtor-in-possession under the
         Bankruptcy Code), assignee, receiver, trustee or estate thereof.

                  "PERSON" shall mean an individual, corporation, association,
         partnership, limited partnership, trust, organization, individual or
         government or any governmental agency or any political subdivision
         thereof.

                  "SENIOR CREDITOR" shall mean Pala Investments Holdings
         Limited, its successors and its assignees with respect to any of the
         Senior Debt.

                  "SENIOR DEBT" shall mean all liabilities and obligations of
         the Borrower to the Senior Creditor howsoever created, arising or
         evidenced, whether direct or indirect, absolute or contingent, due or
         to become due, now existing or hereafter arising or incurred,
         including, without limitation, any and all interest accruing on any of
         the Senior Debt after the commencement of any proceedings referred to
         in Section 4 hereof, notwithstanding any provision or rule of law which
         might restrict the rights of the Senior Creditor, as against the
         Borrower or anyone else, to collect such interest.

                  "SUBORDINATED DEBT" shall mean all liabilities and obligations
         of the Borrower to the Junior Creditor, howsoever created, arising or
         evidenced, whether direct or indirect, absolute or contingent, due or
         to become due, now existing or hereafter arising or incurred, under any
         written or unwritten agreement.

                  1(b) In this Agreement, in the computation of a period of time
from a specified date to a later specified date, unless otherwise stated the
word "from" means "from and including" and the word "to" or "until" each means
"to but excluding."

                  1(c) Other terms may be defined in other parts of this
Agreement. All references to agreements and other contractual instruments shall
be deemed to include all subsequent amendments thereto or changes therein
entered into in accordance with their respective terms, and all references to
Persons shall be deemed to include their permitted successors and assigns.

                                      -2-
<PAGE>

Unless the context in which used herein otherwise clearly requires, "or" has the
inclusive meaning represented by the phrase "and/or." All incorporations by
reference of covenants, terms, definitions or other provisions from other
agreements are incorporated into this Agreement as if such provisions were fully
set forth herein, and include all necessary information and related provisions
from such other agreements, and all such covenants, terms, definitions or other
provisions from other agreements incorporated into this Agreement by reference
shall survive any termination of such other agreements until the Senior Debt has
been paid in full and all financing arrangements between the Borrower and the
Senior Creditor shall have been terminated.

         Section 2. STANDBY; SUBORDINATION. The payment and performance of the
Subordinated Debt is hereby subordinated to the payment and performance of the
Senior Debt, and the Junior Creditor will not take or receive from the Borrower
or any other Person liable for all or any part of the Senior Debt, by setoff or
in any other manner, the whole or any part of the Subordinated Debt, or any
monies which may now or hereafter be owing in respect of the Subordinated Debt
(whether such amounts represent principal or interest, or obligations which are
due or not due, direct or indirect, absolute or contingent), including, without
limitation, taking any security for any of the foregoing, or the taking of any
negotiable instrument therefor, unless and until all of the Senior Debt shall
have been fully paid and satisfied and all financing arrangements between the
Borrower and Senior Creditor have been terminated, except that the Junior
Creditor may (i) accept scheduled payments (but not cash prepayments without the
Senior's Creditor prior written approval) of principal and interest required to
be paid under that certain [INSERT TITLE OF SPECIFIC NOTE] (the "Junior Debt
Instrument"), or convert the principal and interest into shares of Borrower's
common stock is so permitted by the terms thereof , so long as no Event of
Default has occurred and is continuing or will occur as a result of or
immediately following any such payment, (ii) take any against the Borrower or
the property of the Borrower permissible under applicable law or the Junior Debt
Instrument in the event of a material breach by the Borrower of its obligations
under the Junior Debt Instrument , provided that in such event Junior Creditor
shall first provide Senior Creditor with ten (10) business days prior written
notice. All liens and security interests of the Junior Creditor in any assets of
the Borrower or any assets securing the Senior Debt shall be and hereby are
subordinated to the rights and interests of the Senior Creditor, if any, in
those assets. The Junior Creditor warrants and agrees that (a) the Junior
Creditor hereafter will not accept any additional security for the Subordinated
Debt from the Borrower, except pursuant to section 6.2.1 of the Secured
Convertible Debenture between the Senior Creditor and the Borrower dated as of
[_______] (the "Debenture Agreement"); and (b) in the event the Junior Creditor
does obtain any additional security for the Subordinated Debt in violation
thereof, (i) the Junior Creditor shall have no right to possession of any such
assets or to foreclose upon any such assets, whether by judicial action or
otherwise, unless and until all the Senior Debt shall have been fully paid and
satisfied and all financing arrangements between the Borrower and Senior

                                      -3-
<PAGE>

Creditor have been terminated, and (ii) at the request of the Senior Creditor,
the Junior Creditor shall execute and deliver to the Senior Creditor such
termination statements and releases as the Senior Creditor shall reasonably
request to release the Junior Creditor's additional security interest in or lien
against such property. The Junior Creditor acknowledges and agrees that, to the
extent the terms and provisions of this Agreement are inconsistent with any
agreement or understanding between the Junior Creditor and the Borrower, such
agreement or understanding shall be subject to this Agreement.

         Section 3. SUBORDINATED DEBT OWED ONLY TO THE JUNIOR CREDITOR. The
Junior Creditor warrants and represents that the Junior Creditor has not
previously assigned any interest in the Subordinated Debt, that no other Person
owns an interest in the Subordinated Debt (whether as joint holders of
Subordinated Debt, participants or otherwise) and that the entire Subordinated
Debt is owing only to the Junior Creditor. The Junior Creditor further covenants
that the entire Subordinated Debt shall continue to be owing only to the Junior
Creditor unless it is assigned to a Person who agrees with the Senior Creditor
to be bound by the subordination provisions set forth herein.

         Section 4. PRIORITY. In the event of (a) any distribution, division, or
application, partial or complete, voluntary or involuntary, by operation of law
or otherwise, of all or any substantial part of the assets of the Borrower or
the proceeds thereof to the creditors of the Borrower or to their claims against
the Borrower, or (b) any readjustment of the debt or obligations of the Borrower
by reason of liquidation, bankruptcy, arrangement, receivership, assignment for
the benefit of creditors involving the readjustment of all or any substantial
part of the Senior Debt or Subordinated Debt, or the application of the assets
of the Borrower to the payment or liquidation thereof, or (c) the dissolution or
other winding up of the business of the Borrower, or (d) the sale of all or
substantially all of the assets of the Borrower, THEN, and in any such event,
the Senior Creditor shall be entitled to receive payment in full of all of the
Senior Debt prior to the payment of all or any part of the Subordinated Debt.

         Section 5. PAYMENTS RECEIVED BY THE JUNIOR CREDITOR. If the Junior
Creditor receives any payment or distribution or security or instrument or
proceeds thereof upon or with respect to the Subordinated Debt prior to the
payment in full of the Senior Debt and termination of all financing arrangements
between the Borrower and the Senior Creditor, except as otherwise permitted
hereunder, the Junior Creditor shall receive and hold the same in trust, as
trustee, for the benefit of the Senior Creditor and shall forthwith deliver the
same to the Senior Creditor in precisely the form received (except for the
endorsement or assignment by the Junior Creditor where necessary), for
application on any of the Senior Debt, due or not due and, until so delivered,
the same shall be held in trust by the Junior Creditor as the property of the
Senior Creditor. In the event of the failure of the Junior Creditor to make any
such endorsement or assignment to the Senior Creditor, the Senior Creditor, or
any of its officers or employees, is hereby irrevocably authorized to make the
same.

                                      -4-
<PAGE>

         Section 6. CONTINUING NATURE OF SUBORDINATION. This Agreement shall be
effective and may not be terminated or otherwise revoked by the Junior Creditor
until the Senior Debt shall have been fully paid and discharged and all
financing arrangements between the Borrower and the Senior Creditor have been
terminated. This is a continuing agreement of subordination and the Senior
Creditor may continue, at any time and without notice to the Junior Creditor, to
extend credit or other financial accommodations and loan monies to or for the
benefit of the Borrower in reliance hereon. No obligation of the Junior Creditor
hereunder shall be affected by the death or incapacity of, or written revocation
by, the Junior Creditor or any other subordinated party, pledgor, endorser, or
guarantor, if any. The Junior Creditor hereby waives any and all right to
require the marshalling of assets in connection with the exercise of any of the
Senior Lender's remedies permitted by applicable law or agreement.

         Section 7. ADDITIONAL AGREEMENTS BETWEEN SENIOR CREDITOR AND BORROWER.
The Senior Creditor, at any time and from time to time, may enter into such
agreement or agreements with the Borrower as the Senior Creditor may deem
proper, increasing the amount of, extending the time of payment of or renewing
or otherwise altering the terms of all or any of the Senior Debt or affecting
any security underlying any or all of the Senior Debt, and may exchange, sell,
release, surrender or otherwise deal with any such security, without in any way
thereby impairing or affecting this Agreement.

         Section 8. BANKRUPTCY ISSUES. If the Borrower becomes the subject of
proceedings under the Bankruptcy Code and if the Senior Creditor desires to
permit the use of cash collateral or to provide financing to the Borrower under
either Section 363 or Section 364 of the Bankruptcy Code, the Junior Creditor
agrees that adequate notice of such financing to the Junior Creditor, if
required under applicable law, shall have been provided if the Junior Creditor
receives notice two (2) business days prior to entry of any order approving such
cash collateral usage or financing. Notice of a proposed financing or use of
cash collateral shall be deemed given upon the sending of such notice to the
Junior Creditor in the manner specified in Section 19. All allocations of
payments between the Senior Creditor and the Junior Creditor shall continue to
be made after the filing of a petition under the Bankruptcy Code on the basis
provided in this Agreement. The Junior Creditor agrees not to assert any right
it may have to "adequate protection" in any Bankruptcy proceeding without the
prior written consent of the Senior Creditor. The Junior Creditor waives any
claim the Junior Creditor may now or hereafter have against the Senior Creditor
arising out of the Senior Creditor's election, in any proceeding instituted
under Chapter 11 of the Bankruptcy Code, of the application of Section
1111(b)(2) of the Bankruptcy Code, and/or any borrowing or grant of a security
interest under Section 364 of the Bankruptcy Code by the Borrower, as debtor in
possession, or by a trustee. To the extent that the Senior Creditor receives
payments on, or proceeds of any collateral for, the Senior Debt which are
subsequently avoided, invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to a trustee, receiver or any other party
under any Bankruptcy law, state or federal law, common law or equitable cause,
then, to the extent of such payment or proceeds received, the Senior Debt, or
part thereof, intended to be satisfied shall be revived and continue in full
force and effect as if such payments or proceeds had not been received by the
Senior Creditor.

                                      -5-
<PAGE>

         Section 9. INSTRUMENT LEGEND; NO AMENDMENTS TO SUBORDINATED
INSTRUMENTS. Within five business days of the Effective Date, any agreement or
instrument evidencing the Subordinated Debt, or any portion thereof, which has
been or is hereafter executed by the Borrower will, on the date hereof or the
date of execution, be inscribed with a legend conspicuously indicating that
payment thereof is subordinated to the claims of the Senior Creditor pursuant to
the terms of this Agreement. The Junior Creditor will not agree to any
amendment, restatement or other modification of any such instrument or agreement
or any other agreement or document evidencing the Subordinated Debt without the
prior written consent of the Senior Creditor, except as otherwise provided in
section 6.2.1 of the Debenture Agreement.

         Section 10. WAIVERS. The Senior Debt shall be deemed to have been made
or incurred in reliance upon this Agreement. The Junior Creditor expressly
waives all notice of the acceptance by the Senior Creditor of the subordination
and other provisions of this Agreement and all other notices not specifically
required pursuant to the terms of this Agreement whatsoever, and the Junior
Creditor expressly waives reliance by the Senior Creditor upon the subordination
and other agreements as herein provided. The Junior Creditor agrees that the
Senior Creditor has made no warranties or representations with respect to the
collectability of the Senior Debt.

         Section 11. FINANCIAL CONDITION OF BORROWER; OTHER ACTIONS BY THE
SENIOR CREDITOR. The Junior Creditor hereby assumes responsibility for keeping
informed of the financial condition of the Borrower, any and all endorsers and
any and all guarantors of the Subordinated Debt and of all other circumstances
bearing upon the risk of nonpayment of the Senior Debt and/or the Subordinated
Debt that diligent inquiry would reveal. The Junior Creditor hereby agrees that
the Senior Creditor shall have no duty to advise the Junior Creditor of
information known to the Senior Creditor regarding such condition or any such
circumstances. In the event the Senior Creditor, in its sole discretion,
undertakes, at any time or from time to time, to provide any such information to
the Junior Creditor, the Senior Creditor shall be under no obligation (i) to
provide any such information to the Junior Creditor on any subsequent occasion,
(ii) to undertake any investigation not a part of its regular business routine,
or (iii) to disclose any information which, pursuant to its usual practices, the
Senior Creditor wishes to maintain confidential. The Junior Creditor hereby
agrees that all payments received by the Senior Creditor may be applied, in
whole or in part, to any of the Senior Debt, as the Senior Creditor, in its sole
discretion, deems appropriate and assents to any extension or postponement of
the time of payment of the Senior Debt or to any other indulgence with respect
thereto, to any substitution, exchange or release of collateral which may at any
time secure the Senior Debt and to the addition or release of any other Person
primarily or secondarily liable therefor.

                                      -6-
<PAGE>

         Section 12. SUBROGATION. When the Senior Debt shall have been fully
paid and discharged and all financing arrangements between the Borrower and the
Senior Creditor have been terminated, the Junior Creditor shall be subrogated to
the rights of the Senior Creditor to receive payments or distribution of assets
of the Borrower made on such Senior Debt until the principal of and premium, if
any, and interest on (and any other amounts due with respect to) the
Subordinated Debt shall be paid in full. For the purposes of such subrogation,
no payments or distributions to the Senior Creditor of any cash, property or
securities to which the Junior Creditor would be entitled except for these
provisions shall, as between the Borrower, its creditors other than the Senior
Creditor, and the Junior Creditor, be deemed to be a payment by the Borrower to
or on account of Senior Debt, it being understood that these provisions in this
Section are used, and are intended, solely for the purpose of defining the
relative rights of the Junior Creditor, on the one hand, and the Senior
Creditor, on the other hand.

         Section 13. SENIOR CREDITOR'S WAIVERS. No failure on the part of the
Senior Creditor in exercising any power or right hereunder will operate as a
waiver of the power or right nor will any single or partial exercise of such
right or power preclude exercise of any other right or power hereunder. No
amendment, modification or waiver of any condition of this Agreement or consent
to any departure by the Junior Creditor therefrom will be effective unless it is
in writing signed by the Senior Creditor. No notice to or demand on the Junior
Creditor will entitle the Junior Creditor to any other further notice or demand
in similar or other circumstances unless specifically provided for in this
Agreement.

         Section 14. TIME. Time is of the essence in the performance of this
Agreement.

         Section 15. FURTHER ASSURANCES. The parties to this Agreement will do,
execute and deliver or will cause to be done, executed and delivered all such
further acts, documents and things as may be reasonably required for the purpose
of giving effect to this Agreement.

         Section 16. ASSIGNMENT. The Junior Creditor may not assign this
Agreement or its interest herein or any part hereof except with the prior
written consent of the Senior Creditor. The Senior Creditor may assign this
Agreement, or its interest in this Agreement or any part hereof upon ten (10)
days' written notice to the Junior Creditor.

         Section 17. SURVIVAL. All representations and warranties contained in
this Agreement or in any other agreement between the Junior Creditor and the
Senior Creditor shall survive the execution, delivery and performance of this
Agreement.

         Section 18. CUMULATIVE REMEDIES. All rights and remedies of the Senior
Creditor shall be cumulative and may be exercised singularly or concurrently, at
the Senior Creditor's option, and the exercise or enforcement of any one such
right or remedy shall neither be a condition to nor bar the exercise or
enforcement of any other.

                                      -7-
<PAGE>

         Section 19. NOTICES. All notices, requests, demands and other
communications to be given hereunder shall be in writing and shall be deemed to
have been duly given on the date of personal service or transmission by fax if
such transmission is received during the normal business hours of the addressee,
or on the first business day after sending the same by overnight courier service
or by telegram, or on the third business day after mailing the same by first
class mail, or on the day of receipt if sent by certified or registered mail,
addressed as set forth below, or at such other address as any party may
hereafter indicate by notice delivered as set forth in this Section 19:

         If to the Junior Creditor:         _________________________
                                            _________________________
                                            _________________________
                                            _________________________

         If to the Senior Creditor:         Pala Investments Holdings Limited
                                            12 Castle Street
                                            St. Helier
                                            Jersey
                                            JE2 3RT
                                            Channel Islands
                                            Attn:    Ms. Susan Garrod, Director

         With a copy to :                   Pala Investments AG
                                            Dammstrasse 19
                                            6300 Zug
                                            Switzerland
                                            Attn:    Mr. Jan Castro,
                                                     Managing Director

         Section 20. AMENDMENTS. This Agreement may be amended, waived,
discharged or terminated only with the agreement of the party against whom
enforcement of the amendment, waiver, discharge or termination is sought and
only in writing signed by both parties to this Agreement and subject to the same
governing law and venue as stated in Section 22 hereof.

         Section 21. COUNTERPART AND FAX EXECUTION. This Agreement may be
executed in two or more counterparts and by fax transmission, each of which will
be deemed to be an original and all of which will constitute one agreement,
effective as of the date given above.

         Section 22. GOVERNING LAW AND VENUE. This Agreement shall be governed
by and construed in accordance with the internal laws of the State of California
applicable to the performance and enforcement of contracts made within such
state, without giving effect to the law of conflicts of laws applied thereby. In
the event that any dispute shall occur between the parties arising out of or
resulting from the construction, interpretation, enforcement or any other aspect
of this Agreement, the parties hereby agree to accept the exclusive jurisdiction
of the Courts of the State of California sitting in and for the County of
Orange.

                                      -8-
<PAGE>

         Section 23. SEVERABILITY. If any one or more of the provisions
contained in this Agreement is found to be invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein will not in any way be affected or impaired thereby.

         Section 24. PARTIES IN INTEREST. This Agreement inures to the benefit
of and is binding on the parties hereto and their respective successors and
permitted assigns.

         Section 25. HEADINGS AND MARGINAL REFERENCES. The division of this
Agreement into sections, subsections, paragraphs and subparagraphs and the
insertion of headings are for convenience of reference only and do not affect
the construction or interpretation of this Agreement.

         Section 26. ACKNOWLEDGMENT. The Junior Creditor hereby acknowledges
that (a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement, (b) the Senior Creditor has no fiduciary
relationship to the Junior Creditor, and (c) no joint venture exists between the
Junior Creditor and the Senior Creditor.

         Section 27. ENTIRE AGREEMENT. This Agreement, together with the
Schedules and Exhibits referred to herein which are incorporated herein by this
reference, and the agreements referred to herein, supersedes all prior
agreements and understandings and shall constitute the entire agreement between
the parties hereto with respect to the transactions contemplated hereby.

                             SIGNATURES ON NEXT PAGE

                                      -9-
<PAGE>

         IN WITNESS WHEREOF, this instrument has been signed as of the date
first set forth above.

                                                     THE JUNIOR CREDITOR:

                                                     [                       ]

                                                     By:   _____________________
                                                     Name: _____________________
                                                     Title:_____________________

Accepted:

PALA INVESTMENTS HOLDINGS LIMITED

By:  __________________
Name:__________________
Title:_________________

                          ACCEPTANCE AND ACKNOWLEDGMENT
                          -----------------------------

The Borrower named above hereby accepts, and acknowledges receipt of a copy of,
the foregoing Subordination Agreement and agrees that it will not pay any of the
"Subordinated Debt" (as defined in the foregoing Agreement) or grant any
security therefor, except as the foregoing Agreement provides.

                                                     RECLAMATION CONSULTING AND
                                                     APPLICATIONS, INC.

                                                     By:   _____________________
                                                     Name: _____________________
                                                     Title:_____________________

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