Document:

Exhibit 10.14

    Exhibit
      10.14

     

    THIS
      WARRANT CERTIFICATE AND THE UNDERLYING SHARES OF COMMON STOCK REPRESENTED BY
      THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
      FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER THE ACT.

     

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE
      LATER
      OF (i) ____________ 2006, AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER
      IN ANY PROVINCE OR TERRITORY

     

    ________________,
      2006

     

    CALIBRE
      ENERGY, INC.

     

    COMMON
      STOCK PURCHASE WARRANT

     

    Void
      after
      ________________, 2008, and subject to earlier termination upon the terms and
      conditions set forth herein

     

    THIS
      WARRANT (the “Warrant”)
      entitles ______________ (including any successors or assigns, the “Holder”),
      for
      value received, to purchase from CALIBRE ENERGY, INC., a Nevada corporation
      (the
“Company”),
      at any
      time and from time to time, subject to the terms and conditions set forth
      herein, during the period starting from 5:00 a.m. on the Initial Exercise Date
      (as defined in Section 1
      below) to
      5:00 p.m., Eastern time, on the “Expiration Date” (as defined in Section
1
      below),
      immediately following which time this Warrant shall expire and become void,
      all
      or any portion of ______ shares of the Company’s common stock, par value $0.001
      per share (the “Warrant Shares”), at the “Exercise Price” (as defined in Section
1
      below).
      This Warrant has been issued to Holder pursuant to the terms of a Subscription
      Agreement of even date herewith by and between the Company and the Holder.
      This
      Warrant is issued subject to the following terms and conditions:

     

    1  Definitions.
      As
      used in
      this Warrant, the following terms shall have the respective meanings set forth
      below or elsewhere in this Warrant as referred to below:

     

    “Affiliate”
means,
      with respect to any Person, any other Person directly or indirectly controlling
      or controlled by or under direct or indirect common control with such specified
      Person. For the purposes of this Warrant, “control,” when used with respect to
      any specified Person means the power to direct or cause the direction of the
      management and policies of such Person, directly or indirectly, whether through
      the ownership of voting securities, by contract or otherwise; and the terms
      “controlling” and “controlled” have meanings correlative to the
      foregoing.

     

    “Business
      day”
(whether
      such term is capitalized or not) means any day except Saturday, Sunday and
      any
      day which shall be a federal legal holiday or a day on which banking
      institutions in the State of New York or the State of Texas are authorized
      or
      required by law or other governmental action to close. 

     

    “Common
      Stock”
means
      the common stock, $0.001 par value per share, of the Company (including any
      securities into which or for which such shares may be exchanged for, or
      converted into, pursuant to any stock dividend, stock split, stock combination,
      recapitalization, reclassification, reorganization or other similar
      event).

     

     

    
      
        Appendix
          C-1

      

      
        
        

        
          
            
Calibre
            Energy, Inc.

          Common
            Stock Purchase Warrant

        

      

      
        
        

      

    

     

     

    “Company”
has
      the
      meaning set forth in the preamble hereof.

     

    “Exercise
      Price”
means
      initially the Initial Exercise Price, as such amount may be adjusted from time
      to time pursuant to Section 3
      hereof.

     

    “Expiration
      Date”
means
      ________________, 2008.

     

    “Fair
      Market Value”
shall
      mean on any date (i) if the Common Stock is quoted on Nasdaq or listed on a
      national securities exchange, then the last reported sale price per share of
      Common Stock on Nasdaq or any national securities exchange in which such Common
      Stock is quoted or listed, as the case may be, on such date or, if no such
      sale
      price is reported on such date, such price on the next preceding business day
      in
      which such price was reported, (ii) if the Common Stock is actively traded
      over-the-counter, then the last sales price quoted, if determinable, or, if
      not
      determinable, the average of the closing bid and asked prices quoted on the
      OTCBB (or similar system) on such date or (iii) if such Common Stock is not
      traded, quoted or listed on Nasdaq or any national securities exchange or the
      over-the-counter market, then the fair market value of a share of Common Stock,
      as determined in good faith by the Board of Directors of the
      Company.

     

    “Holder”
has
      the
      meaning set forth in the preamble of hereof.

     

    “Initial
      Exercise Date”
means
      the date hereof.

     

    “Initial
      Exercise Price”
means
      $_____ per share of Common Stock.

     

    “OTCBB”
means
      the OTC Bulletin Board.

     

    “Person”
(whether
      or not capitalized) means an individual, entity, partnership, limited liability
      company, corporation, association, trust, joint venture, unincorporated
      organization, and any government, governmental department or agency or political
      subdivision thereof.

     

    “Registration
      Rights Agreement”
means
      that certain Registration Rights Agreement, dated as of the date hereof, as
      it
      may be amended from time to time, by and among the Company and the “Holders” (as
      such term is defined therein).

     

    “SEC”
means
      the United States Securities and Exchange Commission.

     

    “Warrants”
means
      this Warrant and any other warrants, substantially identical hereto, to purchase
      Common Stock issued by the Company contemporaneously herewith to other
      Persons.

     

    2  Exercise
      of Warrant.

     

    2.1  Method
      of
      Exercise; Payment. Subject
      to
      all of the terms and conditions hereof, this Warrant may be exercised, in whole
      or in part, with respect to any Warrant Shares, at any time and from time to
      time during the period commencing on the Initial Exercise Date and ending at
      5:00 p.m., Eastern Time, on the Expiration Date, by surrender of this Warrant
      to
      the Company at its principal office, accompanied by a subscription substantially
      in the form attached hereto, executed by the Holder and accompanied by (a)
      wire
      transfer of immediately available funds or (b) certified or official bank check
      payable to the order of the Company, in each case in the amount obtained by
      multiplying (i) the number of Warrant Shares for which the Warrant is being
      exercised, as designated in such subscription, by (ii) the Exercise Price.
      Thereupon, the Holder shall be entitled to receive the number of duly
      authorized, validly issued, fully paid and nonassessable Warrant Shares
      determined as provided for herein.

     

    
       

      
        
          Appendix
            C-2

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

    

     

    2.2  Delivery
      of Stock Certificates on Exercise.
      As soon
      as practicable after the exercise of this Warrant, and in any event within
      five
      (5) business days thereafter, the Company, at its expense, and in accordance
      with applicable securities laws, will cause to be issued in the name of and
      delivered to the Holder, or as the Holder may direct (subject in all cases,
      to
      the provisions of Section 9
      hereof),
      a certificate or certificates for the number of Warrant Shares purchased by
      the
      Holder on such exercise, plus, in lieu of any fractional share to which the
      Holder would otherwise be entitled, cash equal to such fraction multiplied
      by
      the Fair Market Value.

     

    2.3  Shares
      To
      Be Fully Paid and Nonassessable.
      All
      Warrant Shares issued upon the exercise of this Warrant shall be duly
      authorized, validly issued, fully paid and nonassessable, free of all liens,
      taxes, charges and other encumbrances or restrictions on sale (other than those
      set forth herein).

     

    2.4  Issuance
      of New Warrants; Company Acknowledgment.
      Upon any
      partial exercise of this Warrant, the Company, at its expense, will forthwith
      and, in any event within three (3) business days, issue and deliver to the
      Holder a new warrant or warrants of like tenor, registered in the name of the
      Holder, exercisable, in the aggregate, for the balance of the Warrant Shares.
      Moreover, the Company shall, at the time of any exercise of this Warrant, upon
      the request of the Holder, acknowledge in writing its continuing obligation
      to
      afford to the Holder any rights to which the Holder shall continue to be
      entitled after such exercise in accordance with the provisions of this Warrant;
      provided, however, that if the Holder shall fail to make any such request,
      such
      failure shall not affect the continuing obligation of the Company to afford
      to
      the Holder any such rights.

     

    2.5  Payment
      of
      Taxes and Expenses.
      The
      Company shall pay any recording, filing, stamp or similar tax which may be
      payable in respect of any transfer involved in the issuance of, and the
      preparation and delivery of certificates (if applicable) representing, (i)
      any
      Warrant Shares purchased upon exercise of this Warrant and/or (ii) new or
      replacement warrants in the Holder's name or the name of any transferee of
      all
      or any portion of this Warrant.

     

    2.6  Cooperation
      with Filings.
      The
      Company shall assist and cooperate with any Holder required to make any
      governmental or regulatory filings or obtain any governmental or regulatory
      approvals prior to or in connection with any exercise of this Warrant
      (including, without limitation, making any filings required to be made by the
      Company). 

     

    2.7  Conditions.
      Notwithstanding any other provision of this Warrant, if the exercise of all
      or
      any portion of this Warrant is to be made in connection with a registered public
      offering, a sale of the Company or any other transaction or event, such exercise
      may, at the election of the Holder, be conditioned upon consummation of such
      transaction or event in which case such exercise shall not be deemed effective
      until the consummation of such transaction or event. 

     

    
       

      
        
          Appendix
            C-3

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

     

    3  Adjustment
      of Exercise Price and Warrant Shares. The
      Exercise Price and the number of Warrant Shares shall be subject to adjustment
      from time to time upon the happening of certain events as described in this
      Section 3.
      

     

    3.1  Subdivision
      or Combination of Stock. If
      at any
      time or from time to time after the date hereof, the Company shall subdivide
      (by
      way of stock dividend, stock split or otherwise) its outstanding shares of
      Common Stock, the Exercise Price in effect immediately prior to such subdivision
      shall be reduced proportionately and the number of Warrant Shares (calculated
      to
      the nearest whole share) shall be increased proportionately, and conversely,
      in
      the event the outstanding shares of Common Stock shall be combined (whether
      by
      stock combination, reverse stock split or otherwise) into a smaller number
      of
      shares, the Exercise Price in effect immediately prior to such combination
      shall
      be increased proportionately and the number of Warrant Shares (calculated to
      the
      nearest whole share) shall be decreased proportionately. The Exercise Price
      and
      the number of Warrant Shares, as so adjusted, shall be readjusted in the same
      manner upon the happening of any successive event or events described in this
      Section 3.1.

     

    3.2  Adjustments.

     

    3.2.1  Adjustment
      for Stock Dividends.
      If at
      any time after the date hereof, the Company shall declare a dividend or make
      any
      other distribution upon any class or series of stock of the Company payable
      in
      shares of Common Stock, the Exercise Price in effect immediately prior to such
      declaration or distribution shall be reduced proportionately and the number
      of
      Warrant Shares (calculated to the nearest whole share) shall be increased
      proportionately, to reflect the issuance of any shares of Common Stock, issuable
      in payment of such dividend or distribution. The Exercise Price and the number
      of Warrant Shares, as so adjusted, shall be readjusted in the same manner upon
      the happening of any successive event or events described in this Section
3.2.

     

    3.2.2  Adjustments
      for Other Dividends and Distributions.
      If the
      Company at any time or from time to time after the date hereof shall make or
      issue, or fix a record date for the determination of holders of Common Stock
      entitled to receive, a dividend or other distribution payable in securities
      of
      the Company (other than shares of Common Stock) or in cash or other property,
      then and in each such event provision shall be made so that the Holder shall
      receive upon exercise hereof, in addition to the number of shares of Common
      Stock issuable hereunder, the kind and amount of securities of the Company
      and/or cash and other property which the Holder would have been entitled to
      receive had this Warrant been exercised into Common Stock on the date of such
      event and had the Holder thereafter, during the period from the date of such
      event to and including the exercise date, retained any such securities
      receivable, giving application to all adjustments called for during such period
      under this Section 3
      with
      respect to the rights of the Holder.

     

    3.2.3  Adjustments
      for Reclassifications.
      If the
      Common Stock issuable upon the conversion of this Warrant shall be changed
      into
      the same or a different number of shares of any class(es) or series of stock
      and/or the right to receive property, whether by reclassification or otherwise
      (other than an adjustment under Sections 3.1
      and
3.2
      or a
      merger, consolidation, or sale of assets provided for under Section 3.4),
      then
      and in each such event, the Holder hereof shall have the right thereafter to
      convert each Warrant Share into the kind and amount of shares of stock and
      other
      securities and property receivable upon such reclassification, or other change
      by holders of the number of shares of Common Stock into which such Warrant
      Shares would have been convertible immediately prior to such reclassification
      or
      change, all subject to successive adjustments thereafter from time to time
      pursuant to and in accordance with, the provisions of this Section 3.

    
       

      
        
          Appendix
            C-4

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

    3.3  Adjustments
      for Merger or Consolidation. If,
      at any
      time or from time to time after the date hereof, the Company shall (a) effect
      a
      reorganization, (b) consolidate with or merge into any other Person, or (c)
      sell
      or transfer all or substantially all of its properties or assets or more than
      50% of the voting capital stock of the Company (whether issued and outstanding,
      newly issued, from treasury, or any combination thereof) to any other person
      under any plan or arrangement contemplating the consolidation or merger, sale
      or
      transfer, or dissolution of the Company (each, a “Merger
      Transaction”),
      then,
      in each such case, the Holder, upon the exercise of this Warrant as provided
      in
      Section 2.1
      or the
      conversion of this warrant as provided in Section 2.1
      hereof at
      any time or from time to time after the consummation of such reorganization,
      consolidation, merger or sale or the effective date of such dissolution, as
      the
      case may be, shall receive, in lieu of the Warrant Shares issuable on such
      exercise immediately prior to such consummation or such effective date, as
      the
      case may be, the stock and property (including cash) to which the Holder would
      have been entitled upon the consummation of such consolidation or merger, or
      sale or transfer, or in connection with such dissolution, as the case may be,
      if
      the Holder had so exercised this Warrant immediately prior thereto (assuming
      the
      payment by the Holder of the Exercise Price therefor as required hereby in
      a
      form permitted hereby, which payment shall be included in the assets of the
      Company for the purposes of determining the amount available for distribution),
      all subject to successive adjustments thereafter from time to time pursuant
      to,
      and in accordance with, the provisions of this Section 3.
      The
      Company shall not effect any such reorganization, consolidation, merger, sale
      or
      transfer unless, prior to the consummation thereof, the successor entity (if
      other than the Company) resulting from the consolidation or merger or the entity
      purchasing such assets assumes by written instrument the obligation to deliver
      to each holder of Warrants such shares of stock, securities or assets as, in
      accordance with the foregoing provisions, such holder may be entitled to
      acquire; provided, that any assumption shall not relieve the Company of its
      obligations hereunder. 

     

    3.4  Continuation
      of Terms .
      Upon any
      reorganization, consolidation, merger or transfer (and any dissolution following
      any such transfer) referred to in this Section 3,
      this
      Warrant shall continue in full force and effect and the terms hereof shall
      be
      applicable to the shares of Common Stock and other securities and property
      receivable upon the exercise of this Warrant after the consummation of such
      reorganization, consolidation or merger or the effective date of dissolution
      following any such transfer, as the case may be, and shall be binding upon
      the
      issuer of any such Common Stock or other securities, including, in the case
      of
      any such transfer, the Person acquiring all or substantially all of the
      properties or assets or more than 50% of the voting capital stock of the Company
      (whether issued and outstanding, newly issued or from treasury or any
      combination thereof), whether or not such Person shall have expressly assumed
      the terms of this Warrant.

     

    
       

      
        
          Appendix
            C-5

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

     

    3.5  Minimum
      Adjustment of Exercise Price. If
      the
      amount of any adjustment of the Exercise Price required pursuant to this Section
      3
      would be
      less than one-tenth (1/10) of one percent (1%) of the Exercise Price in effect
      at the time such adjustment is otherwise so required to be made, such amount
      shall be carried forward and adjustment with respect thereto made at the time
      of
      and together with any subsequent adjustment which, together with such amount
      and
      any other amount or amounts so carried forward, shall aggregate at least one
      tenth (1/10) of one percent (1%) of such Exercise Price.

     

    3.6  Certificate
      as to Adjustments. Upon
      the
      occurrence of each adjustment or readjustment of the Exercise Price and number
      of Warrant Shares pursuant to this Section 3,
      this
      Warrant shall, without any action on the part of the Holder, be adjusted in
      accordance with this Section 3,
      and the
      Company, at its expense, promptly shall compute such adjustment or readjustment
      in accordance with the terms hereof and prepare and furnish to the Holder a
      certificate setting forth such adjustment or readjustment, showing in detail
      the
      facts upon which such adjustment or readjustment is based. The Company will
      forthwith send a copy of each such certificate to the Holder in accordance
      with
      Section 10.4
      below.

     

    4  Early
      Termination. If the closing price of the common stock on any exchange or
      quotation system on which our stock is quoted or traded equals or exceeds
      U.S.$4.00 per share for 20 consecutive trading days and if the registration
      statement provided for in Section 5 below is effective, the Company may declare
      the “Termination Date” to be thirty days after the date it gives notice, as
      provided herein, to the record Holder. Closing price shall mean the last
      reported sale price; if the exchange or quotation system reports only bid and
      ask price, “closing price” shall mean the average of the closing bid and ask
      price. Notice shall mean the date of initial issuance of a news release by
      the
      Company announcing the change.

     

    5  Registration
      Rights.
      The
      initial holders of the Warrant Shares shall be entitled to the registration
      rights and other rights applicable to such shares provided by the Registration
      Rights Agreement. 

     

    6  Notices
      of
      Record Date.
      Upon (a)
      any establishment by the Company of a record date of the holders of any class
      of
      securities for the purpose of determining the holders thereof who are entitled
      to receive any dividend or other distribution, or right or option to acquire
      securities of the Company, or any other right, or (b) any capital
      reorganization, reclassification, recapitalization, merger or consolidation
      of
      the Company with or into any other Person, any transfer of all or substantially
      all the assets of the Company, or any voluntary or involuntary dissolution,
      liquidation or winding up of the Company, or the sale, in a single transaction,
      of a majority of the Company’s voting stock (whether newly issued, or from
      treasury, or previously issued and then outstanding, or any combination
      thereof), the Company shall mail to the Holder at least ten (10) business days,
      or such longer period as may be required by law, prior to the record date
      specified therein and at least ten (10) business days prior to the date
      specified in clause (ii) or (iii) hereof, a notice specifying (i) the date
      established as the record date for the purpose of such dividend, distribution,
      option or right and a description of such dividend, distribution, option or
      right, (ii) the date on which any such reorganization, reclassification,
      transfer, consolidation, merger, dissolution, liquidation or winding up, or
      sale
      is expected to become effective and (iii) the date, if any, fixed as to when
      the
      holders of record of Common Stock shall be entitled to exchange their shares
      of
      Common Stock for securities or other property deliverable upon such
      reorganization, reclassification, transfer, consolidation, merger, dissolution,
      liquidation or winding up. Nothing herein shall prohibit the Holder from
      exercising this Warrant during the ten (10) business day period commencing
      on
      the date of such notice.

     

    
       

      
        
          Appendix
            C-6

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

    7  Exchange
      of Warrant.
      Subject
      to the provisions of Section 8
      hereof
      (if and to the extent applicable), this Warrant shall be exchangeable, upon
      the
      surrender hereof by the Holder at the principal office of the Company, for
      new
      warrants of like tenor, each registered in the name of the Holder or, subject
      to
      compliance with applicable federal and state securities laws, in the name of
      such other Persons as the Holder may direct (upon payment by the Holder of
      any
      applicable transfer taxes). Each of such new warrants shall be exercisable
      for
      such number of Warrant Shares as the Holder shall direct, provided that all
      of
      such new warrants shall represent, in the aggregate, the right to purchase
      the
      same number of Warrant Shares and cash, securities or other property, if any,
      which may be purchased by the Holder upon exercise of this Warrant at the time
      of its surrender.

     

    8  Transfer
      Provisions, etc.

     

    8.1  Legends.
      Each
      certificate representing any Warrant Shares issued upon exercise of this
      Warrant, and of any shares of Common Stock into which such Warrant Shares may
      be
      converted, shall bear the following legends or substantially similar language:
      

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO
      AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION
      UNDER
      SAID ACT.”

     

    “UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, A CANADIAN HOLDER OF THIS SECURITY
      MUST
      NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER
      THE
      LATER OF (i) THE DATE OF ISSUANCE, AND (ii) THE DATE THE ISSUER BECAME A
      REPORTING ISSUER IN ANY PROVINCE OR TERRITORY”

     

    8.2  Mechanics
      of Transfer.
      

     

    8.2.1  Any
      transfer of all or any portion of this Warrant (and the Warrant Shares), or
      of
      any interest herein or therein, that is otherwise in compliance with applicable
      law shall be effected by surrendering this Warrant to the Company at its
      principal office, together with a duly executed form of assignment, in the
      form
      attached hereto. Upon any such transfer of this Warrant, subject to compliance
      with applicable federal and state securities laws, the Company shall issue
      a new
      warrant or warrants of like tenor to the transferee(s), representing, in the
      aggregate, the right to purchase the same number of Warrant Shares and cash,
      securities or other property, if any, which may be purchased by the Holder
      upon
      exercise of this Warrant at the time of its surrender, in accordance with
      Section 2
      hereof. 

     

    
       

      
        
          Appendix
            C-7

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

    8.2.2  In
      the
      event of any transfer of all or any portion of this Warrant in accordance with
      Section 8.2.1
      above,
      the Company shall issue (i) a new warrant of like tenor to the transferee,
      representing the right to purchase the number of Warrant Shares, and cash,
      securities or other property, if any, which were purchasable by the Holder
      of
      the transferred portion of this Warrant at the time of said transfer, and (ii)
      a
      new warrant of like tenor to the Holder, representing the right to purchase
      the
      number of Warrant Shares, if any, and cash, securities or other property, if
      any, purchasable by the Holder of the un-transferred portion of this Warrant.
      Until this Warrant or any portion thereof is transferred on the books of the
      Company, the Company may treat the Holder as the absolute holder of this Warrant
      and all right, title and interest therein for all purposes, notwithstanding
      any
      notice to the contrary.

     

    8.3  No
      Restrictions on Transfer.
      Subject
      to compliance with applicable federal and state securities laws, this Warrant
      and any portion hereof, the Warrant Shares and the rights hereunder may be
      transferred by the Holder in its sole discretion at any time and to any Person
      or Persons, including without limitation Affiliates and affiliated groups of
      such Holder, without the consent of the Company.

     

    8.4  Warrant
      Register.
      The
      Company shall keep at its principal office a register for the registration,
      and
      registration of transfers, of the Warrants. The name and address of each Holder
      of one or more of the Warrants, each transfer thereof and the name and address
      of each transferee of one or more of the Warrants shall be registered in such
      register. The Company shall give to any Holder of a Warrant promptly upon
      request therefor, a complete and correct copy of the names and addresses of
      all
      registered Holders of the Warrants.

     

    9  Lost,
      Stolen or Destroyed Warrant.
      Upon
      receipt by the Company of evidence satisfactory to it of loss, theft,
      destruction or mutilation of this Warrant and, in the case of loss, theft or
      destruction, on delivery of a customary affidavit of the Holder and customary
      unsecured indemnity agreement, or, in the case of mutilation, upon surrender
      of
      this Warrant, the Company at its expense will execute and deliver, or will
      instruct its transfer agent to execute and deliver, a new Warrant of like tenor
      and date and representing the same rights represented by such lost, stolen,
      destroyed or mutilated warrant and any such lost, stolen, mutilated or destroyed
      Warrant thereupon shall become void.

     

    10  General.

     

    10.1  Authorized
      Shares, Reservation of Shares for Issuance.
      At all
      times while this Warrant is outstanding, the Company shall maintain its
      corporate authority to issue, and shall have authorized and reserved for
      issuance upon exercise of this Warrant, such number of shares of Common Stock,
      and any other capital stock or other securities as shall be sufficient to
      perform its obligations under this Warrant (after giving effect to any and
      all
      adjustments to the number and kind of Warrant Shares purchasable upon exercise
      of this Warrant).

     

    
       

      
        
          Appendix
            C-8

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

    10.2  No
      Impairment.
      The
      Company will not, by amendment of its Certificate of Incorporation or through
      any reorganization, transfer of assets, consolidation, merger, dissolution,
      issuance or sale of securities, sale or other transfer of any of its assets
      or
      properties, or any other voluntary action, avoid or seek to avoid the observance
      or performance of any of the terms of this Warrant, but will at all times in
      good faith assist in the carrying out of all such terms and in the taking of
      all
      such action as may be necessary or appropriate in order to protect the rights
      of
      the Holder hereunder against impairment. Without limiting the generality of
      the
      foregoing, the Company (a) will not increase the par value of any shares of
      Common Stock receivable upon the exercise of this Warrant above the amount
      payable therefor on such exercise, and (b) will take all action that may be
      necessary or appropriate in order that the Company may validly and legally
      issue
      fully paid and nonassessable shares of Common Stock upon the exercise of this
      Warrant.

     

    10.3  No
      Rights
      as Stockholder.
      Except
      as provided herein (including Sections 3
      and
6),
      the
      Holder shall not be entitled to vote or to receive dividends or to be deemed
      the
      holder of Common Stock that may at any time be issuable upon exercise of this
      Warrant for any purpose whatsoever, nor shall anything contained herein be
      construed to confer upon the Holder any of the rights of a stockholder of the
      Company or any right to vote for the election of directors or upon any matter
      submitted to stockholders at any meeting thereof, or to give or withhold consent
      to any corporate action (whether upon any recapitalization, issuance or
      reclassification of stock, change of par value or change of stock to no par
      value, consolidation, merger or conveyance or otherwise), or to receive notice
      of meetings (except to the extent otherwise provided in this Warrant), or to
      receive dividends or subscription rights, until the Holder shall have exercised
      this Warrant and been issued Warrant Shares in accordance with the provisions
      hereof and continues to hold Warrant Shares.

     

    10.4  Notices.
      Any
      notices, reports or other correspondence (hereinafter collectively referred
      to
      as “correspondence”)
      required or permitted to be given hereunder shall be sent by postage prepaid
      first class mail, overnight courier or facsimile transmission, or delivered
      by
      hand to the party to whom such correspondence is required or permitted to be
      given hereunder. The date of giving any notice shall be the date of its actual
      receipt. 

     

    10.4.1  All
      correspondence to the Company shall be addressed as follows:

     

    Calibre
      Energy, Inc. 

    1667
      K
      St., NW, Ste. 1230

    Washington,
      DC 20006

    Attn:
      Chief Financial Officer

    Facsimile:
      (202) 223-4406

    

    with
      a
      copy to:

    

    Vinson
      & Elkins LLP

    First
      City
      Tower

    1001
      Fannin Street, Suite 2300

    Houston,
      Texas 77002-676

    Attn:
      Michael C. Blaney

    Facsimile:
      (713) 758-2222

     

    
       

      
        
          Appendix
            C-9

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

    

    

    10.4.2  All
      correspondence to the Holder shall be addressed to the Holder at its address
      appearing in the books maintained by the Company.

     

    11  Amendment
      and Waiver.
      No
      failure or delay of the Holder in exercising any power or right hereunder shall
      operate as a waiver thereof, nor shall any single or partial exercise of any
      such right or power, or any abandonment or discontinuance of steps to enforce
      such a right or power, preclude any other or further exercise thereof or the
      exercise of any other right or power. The rights and remedies of the Holder
      are
      cumulative and not exclusive of any rights or remedies which it would otherwise
      have. This Warrant is one of a series of warrants issued by the Company, all
      dated the date hereof and of like tenor, except as to the number of shares
      of
      Common Stock subject thereto (collectively, the “Company
      Warrants”).
      Any
      term of this Warrant may be amended or waived upon the written consent of the
      Company and the holders of Company Warrants representing at least a majority
      of
      the number of shares of Common Stock then subject to outstanding Company
      Warrants; provided that (i) any such amendment or waiver must apply to all
      Company Warrants then outstanding; (ii) the number of Warrant Shares subject
      to
      this Warrant, the Exercise Price or Expiration Date of this Warrant and the
      number of shares or class of stock obtainable upon exercise of this Warrant
      may
      not be amended, and (iii) any amendment that adversely affects any particular
      Holder without a corresponding effect upon all Holders must be approved by
      the
      particular Holder so affected; provided an amendment to or waiver under any
      of
      the provisions of Section 3
      of this
      Warrant shall not be considered an amendment of the number of Warrant Shares
      or
      the Exercise Price. The Company shall promptly give notice to all holders of
      the
      Company Warrants of any amendments effected in accordance with this Section
      11.
      No
      special consideration may be given to any holder as inducement to waive or
      amend
      this Warrant unless such consideration is given equally and ratably to all
      holders of Company Warrants.

     

    12  Governing
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of Nevada, as such laws are applied to contracts entered into and wholly
      to be performed within the State of Nevada and without giving effect to any
      principles of conflicts or choice of law that would result in the application
      of
      the laws of any other jurisdiction.

     

    13  Covenants
      To Bind Successor and Assigns.
      All
      covenants, stipulations, promises and agreements in this Warrant contained
      by or
      on behalf of the Company shall bind its successors and assigns, whether so
      expressed or not.

     

    14  Severability.
      In case
      any one or more of the provisions contained in this Warrant shall be invalid,
      illegal or unenforceable in any respect, the validity, legality and
      enforceability of the remaining provisions contained herein shall not in any
      way
      be affected or impaired thereby. The parties shall endeavor in good faith
      negotiations to replace the invalid, illegal or unenforceable provisions with
      valid provisions the economic effect of which comes as close as possible to
      that
      of the invalid, illegal or unenforceable provisions.

     

    
       

      
        
          Appendix
            C-10

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

    15  Construction.
      The
      definitions of this Warrant shall apply equally to both the singular and the
      plural forms of the terms defined. Wherever the context may require, any pronoun
      shall include the corresponding masculine, feminine and neuter forms. The
      section and paragraph headings used herein are for convenience of reference
      only, are not part of this Warrant and are not to affect the construction of
      or
      be taken into consideration in interpreting this Warrant.

     

    16  Remedies.
      The
      Holder, in addition to being entitled to exercise all rights granted by law,
      including recovery of damages, will be entitled to specific performance of
      its
      rights under this Warrant. The Company agrees that monetary damages would not
      be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive the defense in any action
      for specific performance that a remedy at law would be adequate. In any action
      or proceeding brought to enforce any provision of this Warrant or where any
      provision hereof is validly asserted as a defense, the successful party to
      such
      action or proceeding shall be entitled to recover reasonable attorneys' fees
      in
      addition to any other available remedy.

     

    [SIGNATURE
      PAGE TO FOLLOW]

     

    

     

    
      
        Appendix
          C-11

      

      
        
        

        
          
            
Calibre
            Energy, Inc.

          Common
            Stock Purchase Warrant

        

      

      
        
        

      

    

     

     

    IN
      WITNESS
      WHEREOF, the Company has executed this Common Stock Purchase Warrant as of
      the
      date first written above.

     

    COMPANY:

    

    CALIBRE
      ENERGY, INC.

    

    

    

     By: 
      /s/ Prentis B. Tomlinson, Jr., President

                                     Prentis
      B.
      Tomlinson, Jr., President

     

    
       

      
        
          Appendix
            C-12

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

     

     

    NOTICE
      AND

     

    SUBSCRIPTION

     

    To: Calibre
      Energy, Inc.

    ___________________

    ___________________

     

     

    The
      undersigned hereby irrevocably elects to exercise the right of purchase
      represented by the attached Warrant for, and to exercise thereunder, __________
      shares of Common Stock, of CALIBRE ENERGY, INC., a Nevada corporation (the
      “Company”),
      and
      tenders herewith payment of $__________, representing the aggregate purchase
      price for such shares based on the price per share provided for in such Warrant.
      Such payment is being made in accordance with Section 0
      of the
      attached Warrant.

     

    The
      undersigned hereby represents and warrants as follows: 

     

    (a) the
      undersigned is acquiring such shares of Common Stock for its own account for
      investment and not for resale or with a view to distribution thereof in
      violation of the Securities Act of 1933, as amended, and the regulations
      promulgated thereunder (the “Securities
      Act”);
      and

     

    (b) the
      undersigned is an “accredited investor” as defined in Rule 501 of Regulation D
      promulgated under the Securities Act and was not organized for the purpose
      of
      acquiring the Warrant or such shares of Common Stock. The undersigned’s
      financial condition is such that it is able to bear the risk of holding such
      securities for an indefinite period of time and the risk of loss of its entire
      investment. The undersigned has sufficient knowledge and experience in investing
      in companies similar to the Company so as to be able to evaluate the risks
      and
      merits of its investment in the Company.

     

    Please
      issue a certificate or certificates for such shares of Common Stock in the
      following name or names and denominations and deliver such certificate or
      certificates to the person or persons listed below at their respective address
      set forth below:

     

     

     

    
      	 	 	 
	 	 	 
	 	 	 

    

     

     

     

    If
      said
      number of shares of Common Stock shall not be all the shares of Common Stock
      issuable upon exercise of the attached Warrant, a new Warrant is to be issued
      in
      the name of the undersigned for the remaining balance of such shares of Common
      Stock less any fraction of a share of Common Stock paid in cash pursuant to
      Section 2.1
      of the
      attached warrant.

     

    Dated:
      ___________, ____    _________________________________

    Signature

     

    The
      undersigned Calibre Energy, Inc. hereby acknowledges receipt of this Notice
      and
      Subscription and authorizes issuance of the shares of Common Stock described
      above.

     

    Calibre
      Energy, Inc.

    

    

    

    By:_________________________________________

     

    Title:_______________________________________ 

     

    Date:_______________________________________

     

    
       

      
        
          Appendix
            C-13

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase Warrant

          

        

        
          
          

        

      

       

       

    

    FORM
      OF ASSIGNMENT

     

    (To
      be
      executed upon assignment of Warrant)

     

    For
      value
      received, __________________________________ hereby sells, assigns and transfers
      unto __________________ the attached Warrant [__% of the attached Warrant],
      together with all right, title and interest therein, and does hereby irrevocably
      constitute and appoint ____________________ attorney to transfer said Warrant
      [said percentage of said Warrant] on the books of CALIBRE ENERGY, INC., a Nevada
      corporation, with full power of substitution in the premises.

     

    If
      not all
      of the attached Warrant is to be so transferred, a new Warrant is to be issued
      in the name of the undersigned for the balance of said Warrant.

     

    The
      undersigned hereby agrees that it will not sell, assign, or transfer the right,
      title and interest in and to the Warrant unless applicable federal and state
      securities laws have been complied with.

     

    Dated:
      _____________, ____            _______________________________

                   Signature

     

    
       

      
        
          Appendix
            C-15

        

        
          
          

          
            
              
Calibre
              Energy, Inc.

            Common
              Stock Purchase WarrantExhibit 10.15

    Exhibit
      10.15 

     

    CALIBRE
      ENERGY, INC.

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (the “Agreement”)
      is made
      as of _________, 2006, by and among Calibre Energy, Inc., a Nevada corporation
      (the “Company”),
      and
      the undersigned holders of common stock (the “Company
      Stock”)
      of the
      Company together with their qualifying transferees (the “Holders”).
      

     

    RECITALS:

     

    	A.  	
            The
              Company has sold Units comprised of shares of the Company’s Common Stock
              and warrants exercisable for shares of the Company’s Common Stock
              (collectively with the shares sold, the “Common
              Shares”)
              to the Holders pursuant to one or more Subscription Agreements (each
              a
              “Subscription”).

          

     

    	B.  	
            The
              sale of the Units is conditional upon the granting of the rights set
              forth
              herein, and by this Agreement the Company and the Holders desire to
              provide for certain rights as set forth
              herein.

          

     

    NOW,
      THEREFORE, in consideration of the foregoing and of the mutual promises and
      covenants contained herein, the parties, severally and not jointly, hereby
      agree
      as follows:

     

    AGREEMENT:

     

    1. Registration
      Rights.

     

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

     

    (a)  The
      terms
“register,”
      “registered”
and
      “registration”
refer
      to
      a registration effected by preparing and filing a registration statement in
      compliance with the Securities Act of 1933, as amended (the “Securities
      Act”),
      and
      the declaration or ordering of the effectiveness of such registration
      statement.

     

    (b)  The
      term
“Registrable
      Securities”
means
      (i) any and all Common Shares issued, or issuable upon exercise of the
      warrants issued, and sold by the Company pursuant to the Subscriptions;
      (ii) stock issued in lieu of the Common Shares referred to in (i) in
      any reorganization which has not been sold to the public; or (iii) stock
      issued in respect of the Common Shares referred to in (i) and (ii) as
      a result of a stock split, stock dividend, recapitalization or the like, which
      has not been sold to the public.

     

    (c)  The
      terms
“Holder”
or
      “Holders”
means
      any person or persons who hold Registrable Securities or qualifying transferees
      under subsection 1.9 hereof who hold Registrable Securities.

     

    (d)  The
      term
“SEC”
means
      the Securities and Exchange Commission.

     

    
      
        Appendix
          B-1

      

      
         

        
          

        

      

      
        Calibre
          Registration Rights Agreement

      

       

    

    (e)  The
      term
“Registration
      Expenses”
shall
      mean all expenses incurred by the Company in complying with subsections 1.2,
      1.3
      and 1.4 hereof, including, without limitation, all registration, qualification
      and filing fees, printing expenses, escrow fees, fees and disbursements of
      counsel for the Company, blue sky fees and expenses, and the expense of any
      special audits incident to or required by any such registration (but excluding
      the compensation of regular employees of the Company which shall be paid in
      any
      event by the Company).

     

    1.2  Company
      Registration.

     

    (a)  Registration.
      If at
      any time or from time to time, the Company shall determine to register any
      shares of its common stock, for its own account or the account of any of its
      shareholders, other than a registration on Form S-8 relating solely to
      employee, director or consultant stock option or purchase plans or other equity
      compensation plans, or a registration on Form S-4 relating solely to a SEC
      Rule 145 transaction, the Company will:

     

    (i)  promptly
      give to each Holder written notice thereof at least 10 days prior to the initial
      filing of the registration statement relating to such registration; and

     

    (ii)  include
      in
      such registration, and in any underwriting involved therein, all the Registrable
      Securities specified in a written request or requests, made within 5 days after
      receipt of such written notice from the Company, by any Holder or Holders,
      except as set forth in subsection 1.2(b) below.

     

    Notwithstanding
      the foregoing, if the Company shall have already registered for resale pursuant
      to a registration in accordance with Section 1.3 all of the Registrable
      Securities, the Company shall not be required to include such Registrable
      Securities in the Company’s registration or to deliver the written notice to
      each Holder as provided in subsection 1.2(a)(i). 

     

    (b)  Underwriting.

     

    (i)  If
      the
      registration of which the Company gives notice is for a registered public
      offering involving an underwriting, the Company shall so advise the Holders
      as a
      part of the written notice given pursuant to subsection 1.2(a)(i). In such
      event
      the right of any Holder to registration pursuant to subsection 1.2 shall be
      conditioned upon such Holder’s participation in such underwriting and the
      inclusion of such Holder’s Registrable Securities in the underwriting to the
      extent provided herein. Notwithstanding the foregoing, if the Company proposes
      to commence an underwriting with respect to shares of its common stock and
      shall
      not have otherwise been required to deliver a notice of the registration to
      the
      Holders of its Registrable Securities pursuant to the last sentence of
      subsection 1.2(a), the Company shall deliver a written notice of such
      underwriting at least 10 days prior to the commencement of such underwriting
      and
      provide the Holders an opportunity to participate in such underwriting in
      accordance with this subsection 1.2(b). The Company shall, subject to subsection
      1.2(b)(ii) below, include the Registrable Securities of any Holder in such
      underwriting that specifies in a written request or requests, made within 5
      days
      after receipt of such written notice from the Company. All Holders proposing
      to
      distribute their Registrable Securities through any such underwriting pursuant
      to this subsection 1.2(b) shall (together with the Company and the other
      shareholders distributing their shares of common stock through such
      underwriting) enter into an underwriting agreement in customary form with the
      underwriter or underwriters selected for such underwriting by the
      Company.

    
       

      
        
          Appendix
            B-2

        

        
           

          
            

          

        

        
          Calibre
            Registration Rights Agreement

        

         

      

    

     

    (ii)  Notwithstanding
      any other provision of this subsection 1.2, if the underwriter managing
      such public offering determines that marketing factors require a limitation
      of
      the number of shares of common stock to be underwritten, and (A) if such
      registration is the first registered offering of the sale of the Company’s
      common stock to the general public, the underwriter may limit the number of
      Registrable Securities to be included in the registration and underwriting,
      or
      may exclude Registrable Securities entirely from such registration and
      underwriting, or (B) if such registration is other than the first
      registered offering of the sale of the Company’s common stock to the general
      public, the underwriter may limit the amount of Registrable Securities to be
      included in the registration and underwriting by the Company’s shareholders;
      provided, however, the number of Registrable Securities to be included in such
      registration and underwriting under this subsection 1.2(b)(ii) shall not be
      reduced to less than thirty percent (30%) of the aggregate shares of common
      stock included in such underwriting without the prior consent of at least a
      majority of the Holders who have requested their Registrable Securities to
      be
      included in such underwriting. The Company shall so advise all Holders of
      Registrable Securities which would otherwise be underwritten pursuant hereto,
      and the number of shares of Registrable Securities that may be included in
      the
      underwriting shall be allocated among Holders requesting inclusion in such
      underwriting in proportion, as nearly as practicable, to the respective amounts
      of Registrable Securities held by each of such Holders as of the date of the
      notice pursuant to subsection 1.2(a)(i) above; provided that the number of
      shares of Registrable Securities requested to be included in such underwriting
      shall not be reduced unless all other shares of common stock being sold by
      shareholders other than the Holders are first entirely excluded from the
      underwriting. If any Holder disapproves of the terms of any such underwriting,
      such Holder may elect to withdraw therefrom by written notice to the Company
      and
      the underwriter. Any Registrable Securities excluded or withdrawn from such
      underwriting shall be withdrawn from such registration.

     

    1.3  Form SB-2
      or S-3.
      In
      addition to the rights and obligations set forth in subsection 1.2 above, within
      one hundred twenty (120) days of the sale of the Units, Company will use
      commercially reasonable efforts to prepare and file a registration statement
      on
      Forms SB-2 or S-3 (or any successor to Forms SB-2 or S-3) to register
      the resale from time to time of the Holder’s Registrable Securities. In such a
      registration, the Company shall use commercially reasonable efforts to cause
      such registration statement on Forms SB-2 or S-3 (or any successor form to
      Forms SB-2 or S-3) to be declared effective by the SEC as soon as
      practicable; provided, however, the Company shall not be required to effect
      a
      registration pursuant to this subsection 1.3:

     

    (a)  in
      any
      particular jurisdiction in which the Company would be required to execute a
      general consent to service of process in effecting such registration,
      qualification or compliance unless the Company is already subject to service
      in
      such jurisdiction and except as may be required by the Securities Act;
      or

     

    (b)  during
      the
      period starting with the date of filing of, and ending on a date 90 days
      following the effective date of, a registration statement pursuant to subsection
      1.2, provided that the Company is actively employing in good faith all
      reasonable efforts to cause such registration statement to become effective
      and
      further provided that no other person or entity could require the Company to
      file a registration statement in such period.

     

    
       

      
        
          Appendix
            B-3

        

        
           

          
            

          

        

        
          Calibre
            Registration Rights Agreement

        

         

      

    

     

    Any
      Holder
      that intends to dispose of Registrable Securities pursuant to a registration
      under this subsection 1.3 shall not offer, sell or otherwise dispose of any
      Registrable Securities unless it has provided to the Company a written notice
      of
      its intent to offer and sell the Registrable Securities pursuant to a
      registration under this subsection 1.3 at least ten (10) days prior to the
      offer
      or sale of the Registrable Securities. Upon receipt of such notice by the
      Company from a Holder, the Company may voluntarily suspend the effectiveness
      of
      any registration statement filed pursuant to this subsection 1.3 for a limited
      time, which in no event shall be longer than 90 days in any six-month period,
      if
      the Company has been advised by counsel or underwriters to the Company that
      the
      offering for resale of any Registrable Securities pursuant to the registration
      statement would materially adversely affect, or would be improper in view of
      (or
      improper without disclosure in a prospectus), a proposed financing, a
      reorganization, recapitalization, merger, consolidation or other transaction
      involving the Company.

     

    1.4  Expenses
      of Registration.
      All
      Registration Expenses incurred in connection with any registration,
      qualification or compliance pursuant to this Section 1 shall be borne by
      the Company except as follows:

     

    (a)  The
      Company shall not be required to pay fees or disbursements of more than one
      firm
      of legal counsel to the Holders, such fees to not exceed $10,000 in the
      aggregate.

     

    (b)  The
      Company shall not be required to pay underwriters’ fees, discounts or
      commissions relating to Registrable Securities.

     

    1.5  Registration
      Procedures.
      In the
      case of each registration, qualification or compliance effected by the Company
      pursuant to this Agreement, the Company will keep each Holder participating
      therein advised in writing as to the initiation of each registration,
      qualification and compliance and as to the completion thereof. Except as
      otherwise provided in subsection 1.4, at its expense the Company
      will:

     

    (a)  Prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use its commercially reasonable efforts to cause such
      registration statement to become effective, and, upon the request of the Holders
      of a majority of the Registrable Securities registered thereunder, keep such
      registration statement effective for up to 120 days, or if such registration
      statement is on Form SB-2 or S-3 (or any successor to Form SB-2 or S-3) and
      provides for sales of securities from time to time pursuant to Rule 415 under
      the Securities Act, for up to one year.

     

    (b)  Prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Securities Act with
      respect to the disposition of all Registrable Securities covered by such
      registration statement.

     

    (c)  Furnish,
      without charge, to the Holders such numbers of copies of a prospectus, including
      each preliminary prospectus, in conformity with the requirements of the
      Securities Act, and such other documents as they may reasonably request in
      order
      to facilitate the disposition of Registrable Securities owned by them. The
      Holders shall not be entitled to use any selling materials other than a
      prospectus and such other materials as may be approved by the Company, which
      approval shall not be unreasonably withheld.

     

    
       

      
        
          Appendix
            B-4

        

        
           

          
            

          

        

        
          Calibre
            Registration Rights Agreement

        

         

      

    

     

    (d)  Use
      its
      commercially reasonable efforts to register and qualify the securities covered
      by such registration statement under such other securities or Blue Sky laws
      of
      such jurisdictions as shall be reasonably requested by the Holders or any
      managing underwriter, provided that the Company shall not be required in
      connection therewith or as a condition thereto to qualify to do business or
      to
      file a general consent to service of process in any such states or
      jurisdictions.

     

    (e)  In
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter of such offering. Notwithstanding the foregoing, the
      Company shall not be obligated to enter into an underwriting agreement with
      any
      underwriter unless the Company was previously consulted with respect to the
      selection of each underwriter and the Company consented to such selection,
      which
      consent shall not be unreasonably withheld. Each Holder participating in such
      underwriting shall also enter into and perform its obligations under such an
      agreement.

     

    (f)  Notify
      each Holder of Registrable Securities covered by such registration statement
      at
      any time when a prospectus relating thereto is required to be delivered under
      the Securities Act or the happening of any event as a result of which the
      prospectus included in such 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 not
      misleading in the light of the circumstances then existing.

     

    (g) The
      Company shall:

     

    (i)  make
      available for inspection by a representative of the Holders, the managing
      underwriter participating in any disposition pursuant to such registration
      statement and one firm of attorneys designated by the Holders (upon execution
      of
      customary confidentiality agreements reasonably satisfactory to the Company
      and
      its counsel), at reasonable times and in reasonable manner, financial and other
      records, documents and properties of the Company that are pertinent to the
      conduct of due diligence customary for an underwritten offering, and cause
      the
      officers, directors and employees of the Company to supply all information
      reasonably requested by any such representative, underwriter or attorney in
      connection with a registration statement as shall be necessary to enable such
      persons to conduct a reasonable investigation within the meaning of Section
      11
      of the Securities Act.

     

    (ii)  use
      its
      commercially reasonable efforts to cause all Registrable Securities covered
      by a
      registration statement to be listed on any securities exchange or any automated
      quotation system on which the shares of common stock of the Company are then
      listed;

     

    (iii)  cause
      to
      be provided to the Holders that are selling Registrable Securities pursuant
      to
      such registration statement and to the managing underwriter if any disposition
      pursuant to such registration statement is an underwritten offering, upon the
      effectiveness of such registration statement, a customary “10b-5”
opinion
      of independent counsel (an “Opinion”)
      and a
      customary “cold comfort” letter of independent auditors (a “Comfort
      Letter”)
      in each
      case addressed to such Holders and managing underwriter, if any;

     

    
       

      
        
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            B-5

        

        
           

          
            

          

        

        
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    (iv)  notify
      in
      writing the Holders that are selling Registrable Securities pursuant to such
      registration statement and any managing underwriter if any disposition pursuant
      to such registration statement is an underwritten offering, (A) when the
      registration statement has become effective and when any post-effective
      amendment thereto has been filed and becomes effective, (B) of any request
      by
      the SEC or any state securities authority for amendments and supplements to
      the
      registration statement or of any material request by the SEC or any state
      securities authority for additional information after the registration statement
      has become effective, (C) of the issuance by the SEC or any state securities
      authority of any stop order suspending the effectiveness of the registration
      statement or the initiation of any proceedings for that purpose, (D) if, between
      the effective date of the registration statement and the closing of any sale
      of
      Registrable Securities covered thereby, the representations and warranties
      of
      the Company contained in any underwriting agreement, securities sales agreement
      or other similar agreement, including this Agreement, relating to disclosure
      cease to be true and correct in all material respects or if the Company receives
      any notification with respect to the suspension of the qualification of the
      Registrable Securities for sale in any jurisdiction or the initiation of any
      proceeding for such purpose, (E) of the happening of any event during the period
      the registration statement is effective such that such registration statement
      or
      the related prospectus contains an untrue statement of a material fact or omits
      to state a material fact required to be stated therein or necessary to make
      statements therein not misleading (in the case of a prospectus, in light of
      circumstances under which they were made) and (F) of any determination by the
      Company that a post-effective amendment to the registration statement would
      be
      appropriate. The Holders hereby agree to suspend, and to cause any managing
      underwriter to suspend, use of the prospectus contained in a registration
      statement upon receipt of such notice under clause (C), (E) or (F) above until,
      in the case of clause (C), such stop order is removed or rescinded or, in the
      case of clauses (E) and (F), the Company has amended or supplemented such
      prospectus to correct such misstatement or omission or otherwise.

     

    If
      the
      notification relates to an event described in clauses (E) or (F), the Company
      shall promptly prepare and furnish to each selling Holder and each underwriter,
      if any, a reasonable number of copies of a prospectus supplemented or amended
      so
      that, as thereafter delivered to the purchasers of such Registrable Securities,
      such prospectus shall not include an untrue statement of a material fact or
      omit
      to state a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading.

     

    (v)  provide
      and cause to be maintained a transfer agent and registrar for all such
      Registrable Securities covered by such registration statement not later than
      the
      effective date of such registration statement;

     

    
       

      
        
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            B-6

        

        
           

          
            

          

        

        
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    (vi)  deliver
      promptly upon request to each Holder participating in the offering and each
      underwriter, if any, copies of all correspondence between the SEC and the
      Company, its counsel or auditors and all memoranda relating to discussions
      with
      the SEC and its staff with respect to the registration statement, other than
      those portions of any such correspondence and memoranda which contain
      information subject to attorney-client privilege with respect to the Company,
      and, upon receipt of such confidentiality agreements as the Company may
      reasonably request, make reasonably available for inspection by any Holder
      of
      such Registrable Securities covered by such registration statement, by any
      underwriter, if any, participating in any disposition to be effected pursuant
      to
      such registration statement and by any attorney, accountant or other agent
      retained by any such Holder or any such underwriter, all pertinent financial
      and
      other records, pertinent corporate documents and properties of the Company,
      and
      cause all of the Company’s officers, directors and employees to supply all
      information reasonably requested by any such Holder, underwriter, attorney,
      accountant or agent in connection with such registration statement;

     

    (vii)  use
      commercially reasonable efforts to obtain the withdrawal of any order suspending
      the effectiveness of the registration statement;

     

    (viii)  provide
      a
      CUSIP number for all Registrable Securities not later than the effective date
      of
      any registration statement;

     

    (ix)  make
      reasonably available its employees and personnel and otherwise provide
      reasonable assistance to the underwriters in the marketing of Registrable
      Securities in any underwritten offering;

     

    (x)  promptly
      prior to the filing of any document which is to be incorporated by reference
      into the registration statement or the prospectus (after the initial filing
      of
      such registration statement) (other than a registration statement or prospectus
      prepared pursuant to subsection 1.3) provide copies of such document to counsel
      to the seller of Registrable Securities and to the managing underwriter, if
      any,
      and make the Company’s representatives reasonably available for discussion of
      such document and make such changes in such document concerning such sellers
      prior to the filing thereof as counsel for such sellers or underwriters may
      reasonably request; and

     

    (xi)  cooperate
      with the sellers of Registrable Securities and the managing underwriter, if
      any,
      to facilitate the timely preparation and delivery of certificates not bearing
      any restrictive legends representing the Registrable Securities to be sold,
      and
      cause such Registrable Securities to be issued in such denominations and
      registered in such names in accordance with the underwriting agreement prior
      to
      any sale of Registrable Securities to the underwriters or, if not an
      underwritten offering, in accordance with the instructions of the sellers of
      Registrable Securities at least three business days prior to any sale of
      Registrable Securities.

     

    
       

      
        
          Appendix
            B-7

        

        
           

          
            

          

        

        
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    1.6  Indemnification.

     

    (a)  The
      Company will indemnify and hold harmless to the fullest extent permitted by
      law
      each Holder of Registrable Securities and each of its officers, directors and
      partners, and each person controlling such Holder, with respect to which such
      registration, qualification or compliance has been effected pursuant to this
      Agreement, and each underwriter, if any, and each person who controls any
      underwriter of the Registrable Securities held by or issuable to such Holder,
      against all claims, losses, expenses, damages and liabilities (or actions in
      respect thereto) arising out of or based on (i) any untrue statement (or alleged
      untrue statement) of a material fact contained in any registration statement
      under which such securities were registered under the Securities Act or the
      omission or alleged omission to state therein 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 any preliminary or final prospectus, or based on any omission (or alleged
      omission) to state therein a material fact required to be stated therein or
      necessary to make the statement therein, in light of the circumstances under
      which they were made, or not misleading, or (iii) any violation or alleged
      violation by the Company of the Securities Act, the Exchange Act or any state
      securities law applicable to the Company or any rule or regulation promulgated
      under the Securities Act, the Exchange Act or any such state law and relating
      to
      action or inaction required of the Company in connection with any such
      registration, qualification of compliance, and will reimburse each such Holder,
      each of its officers, directors and partners, and each person controlling such
      Holder, each such underwriter and each person who controls any such underwriter,
      within a reasonable amount of time after incurred for any reasonable legal
      and
      any other expenses incurred in connection with investigating, defending or
      settling any such claim, loss, damage, liability or action; provided, however,
      that the indemnity agreement contained in this subsection 1.6(a) shall not
      apply to amounts paid in settlement of any such claim, loss, damage, liability,
      or action if such settlement is effected without the consent of the Company
      (which consent shall not be unreasonably withheld); and provided further, that
      the Company will not be liable in any such case to the extent that any such
      claim, loss, damage or liability arises out of or is based on any untrue
      statement or omission based upon written information furnished to the Company
      by
      such Holder or underwriter specifically for use therein; and provided further,
      however, that the Company will not be liable in any such case to the extent
      that
      any such claim, loss, damage or liability arises directly out of or is based
      primarily upon an untrue statement or omission made in any preliminary or final
      prospectus if (i) such Holder failed to send or deliver a copy of the final
      prospectus or prospectus supplement with or prior to the delivery of written
      confirmation of the sale of the Registrable Securities and (ii) the final
      prospectus or prospectus supplement would have corrected such untrue statement
      or omission.

     

    
       

      
        
          Appendix
            B-8

        

        
           

          
            

          

        

        
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    (b)  Each
      Holder will, if Registrable Securities held by or issuable to such Holder are
      included in the securities as to which such registration, qualification or
      compliance is being effected, severally and not jointly, indemnify and hold
      harmless to the fullest extent permitted by law the Company, each of its
      directors and officers, each underwriter, if any, of the Company’s securities
      covered by such a registration statement, each person who controls the Company
      within the meaning of the Securities Act, and each other such Holder, each
      of
      its officers, directors and partners and each person controlling such Holder,
      against all claims, losses, expenses, damages and liabilities (or actions in
      respect thereof) arising out of or based on any untrue statement (or alleged
      untrue statement) of a material fact contained in any such registration
      statement or final prospectus, or based on any omission (or alleged omission)
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, and will reimburse the Company, such
      Holders, such directors, officers, partners, persons or underwriters for any
      reasonable legal or any other expenses incurred in connection with
      investigating, defending or settling any such claim, loss, damage, liability
      or
      action, in each case to the extent, but only to the extent, that such untrue
      statement (or alleged untrue statement) or omission (or alleged omission) is
      made in such registration statement or prospectus in reliance upon and in
      conformity with information furnished to the Company by such Holder specifically
      for use therein; provided, however, that the indemnity agreement contained
      in
      this subsection 1.6(b) shall not apply to amounts paid in settlement of any
      such
      claim, loss, damage, liability or action if such settlement is effected without
      the consent of the Holder, (which consent shall not be unreasonably withheld);
      and provided further, that the total amount for which any Holder shall be liable
      under this subsection 1.6(b) shall not in any event exceed the net proceeds
      received by such Holder from the sale of Registrable Securities held by such
      Holder in such registration; and provided further, that a Holder will not be
      liable in any such case to the extent that any such claim, loss, damage or
      liability arises out of or is based on any untrue statement or omission based
      upon written information furnished to the Holder by the Company or underwriter
      specifically for use therein.

     

    (c)  Each
      party
      entitled to indemnification under this subsection 1.6 (the “Indemnified
      Party”)
      shall
      give notice to the party required to provide indemnification (the “Indemnifying
      Party”)
      promptly after such Indemnified Party has actual knowledge of any claim as
      to
      which indemnity may be sought, and shall permit the Indemnifying Party to assume
      the defense of any such claim or any litigation resulting therefrom; provided
      that counsel for the Indemnifying Party, who shall conduct the defense of such
      claim or litigation, shall be approved by the Indemnified Party (whose approval
      shall not be unreasonably withheld), and the Indemnified Party may participate
      in such defense at such party’s expense; and provided further, that the failure
      of any Indemnified Party to give notice as provided herein shall not relieve
      the
      Indemnifying Party of its obligations hereunder, except to the extent such
      failure resulted in material prejudice to the Indemnifying Party; and provided
      further, that an Indemnified Party (together with all other Indemnified Parties
      which may be represented without conflict by one counsel) shall have the right
      to retain one separate counsel, with the fees and expenses to be paid by the
      Indemnifying Party, if representation of such Indemnified Party by the counsel
      retained by the Indemnifying Party would be inappropriate due to actual or
      potential differing interests between such Indemnified Party and any other
      party
      represented by such counsel in such proceeding. No Indemnifying Party, in the
      defense of any such claim or litigation, shall, except with the consent of
      each
      Indemnified Party, consent to entry of any judgment or enter into any settlement
      which does not include as an unconditional term thereof the giving by the
      claimant or plaintiff to such Indemnified Party of a release from all liability
      in respect to such claim or litigation.

     

    
       

      
        
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            B-9

        

        
           

          
            

          

        

        
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    (d)  If
      for any
      reason the foregoing indemnity is unavailable or is insufficient to hold
      harmless an indemnified party under subsection 1.6, then each Indemnifying
      Party
      shall contribute to the amount paid or payable by such Indemnified Party as
      a
      result of any claim in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party, on the one hand, and the Indemnified Party,
      on
      the other hand, with respect to such offering of securities. The relative fault
      shall be determined by reference to, among other things, whether the untrue
      or
      alleged untrue statement of a material fact or the omission or alleged omission
      to state a material fact relates to information supplied by the Indemnifying
      Party or the Indemnified Party and the parties' relative intent, knowledge,
      access to information and opportunity to correct or prevent such untrue
      statement or omission. If, however, the allocation provided in the second
      preceding sentence is not permitted by applicable law, then each Indemnifying
      Party shall contribute to the amount paid or payable by such Indemnified Party
      in such proportion as is appropriate to reflect not only such relative faults,
      but also any other relevant equitable considerations. The parties hereto agree
      that it would not be just and equitable if contributions pursuant to this
      subsection 1.6(d) were to be determined by pro rata allocation or by any other
      method of allocation which does not take into account the equitable
      considerations referred to in the preceding sentences of this
      subsection 1.6(d). The amount paid or payable in respect of any claim shall
      be deemed to include any legal or other expenses reasonably incurred by such
      Indemnified Party in connection with investigating or defending any such claim.
      No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f)
      of the Securities Act) shall be entitled to contribution from any person who
      was
      not guilty of such fraudulent misrepresentation. Notwithstanding anything in
      this subsection 1.6 to the contrary, no Indemnifying Party (other than the
      Company) shall be required pursuant to this subsection 1.6(d) to contribute
      any
      amount in excess of the net proceeds received by such Indemnifying Party from
      the sale of Registrable Securities in the offering to which the losses, claims,
      damages or liabilities of the Indemnified Parties relate, less the amount of
      any
      indemnification payment made pursuant to subsection 1.6.

     

    (e)  The
      indemnity agreements contained herein shall be in addition to any other rights
      to indemnification or contribution which any Indemnified Party may have pursuant
      to law or contract and shall remain operative and in full force and effect
      regardless of any investigation made or omitted by, or on behalf of, any
      Indemnified Party and shall survive the transfer of the Registrable Securities
      by any such party.

     

    1.7  Information
      by Holder.
      Any
      Holder or Holders of Registrable Securities included in any registration shall
      promptly furnish to the Company such information regarding such Holder or
      Holders and the distribution proposed by such Holder or Holders as the Company
      may reasonably request and as shall be required in connection with any
      registration, qualification or compliance referred to herein.

     

    1.8  Rule
      144 Reporting.
      With a
      view to making available to Holders the benefits of certain rules and
      regulations of the SEC which may permit the sale of the Registrable Securities
      to the public without registration, the Company agrees at all times
      to:

     

    (a)  make
      and
      keep public information available, as those terms are understood and defined
      in
      SEC Rule 144, after 90 days after the effective date of the first
      registration filed by the Company for an offering of its securities to the
      general public;

     

    (b)  file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the Securities Act and the Exchange Act (at any time after it
      has
      become subject to such reporting requirements); and

     

    
       

      
        
          Appendix
            B-10

        

        
           

          
            

          

        

        
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    (c)  so
      long as
      a Holder owns any Registrable Securities, to furnish to such Holder forthwith
      upon receipt of a written request a written statement by the Company as to
      its
      compliance with the reporting requirements of said Rule 144 (at any time
      after 90 days after the effective date of the first registration statement
      filed
      by the Company for an offering of its securities to the general public), and
      of
      the Securities Act and the Exchange Act (at any time after it has become subject
      to such reporting requirements), a copy of the most recent annual or quarterly
      report of the Company, and such other reports and documents so filed by the
      Company as the Holder may reasonably request in complying with any rule or
      regulation of the SEC allowing the Holder to sell any such securities without
      registration.

     

    1.9  Transfer
      of Registration Rights.
      Holders’
rights to cause the Company to register their securities and keep information
      available, granted to them by the Company under subsections 1.2, 1.3 and
      1.8, may be assigned to a transferee or assignee of (i) at least 100,000
      shares of Registrable Securities (as adjusted for stock splits, stock dividends,
      recapitalizations and like events), (ii) the transfer is in connection with
      the transfer of all the Registrable Securities of a Holder (including by way
      of
      transfer of a Holder’s Common Shares), or (iii) to any constituent partners
      or members of a Holder which is a partnership or limited liability company,
      or
      to affiliates (as such term is defined in SEC Rule 405) of a Holder, provided,
      that (a) the Company is given written notice by such Holder at the time of
      or
      within a reasonable time after said transfer, stating the name and address
      of
      said transferee or assignee, and identifying the securities with respect to
      which such registration rights are being assigned; (b) the assignee
      or transferee of such rights agrees in writing to be bound by the terms and
      conditions of this Agreement, and
      (c)
      solely as to transfers pursuant to clause (iii) above, any transferees or
      assignees agree to act through a single representative. The Company may prohibit
      the transfer of any Holders’ rights under this subsection 1.9 to any proposed
      transferee or assignee who the Company reasonably believes is a competitor
      of
      the Company, or when such transfer may violate applicable securities laws.
      Notwithstanding anything else in this subsection 1.9, any Holder may transfer
      rights to a transferee of a Holder’s Registrable Securities (or Common Shares)
      if such transferee is a partner, member or shareholder or a retired partner,
      member or shareholder of such Holder. 

     

    1.10 “Market
      Stand-Off” Agreement.
      Each
      Holder hereby agrees that, during the period of duration (not to exceed 180
      days) specified by the Company and an underwriter of common stock or other
      securities of the Company following the effective date of an IPO or reverse
      merger with a public company, it shall not, to the extent requested by the
      Company and such underwriter, directly or indirectly sell, offer to sell,
      contract to sell (including, without limitation, any short sale), grant any
      option to purchase, pledge or otherwise transfer or dispose of (other than
      to
      donees who agree to be similarly bound) any securities of the Company held
      by it
      at any time during such period except common stock included in such
      registration. In order to enforce the foregoing covenant, the Company may impose
      stop-transfer instructions with respect to the securities of the Company held
      by
      any such Holder (and the shares of securities of every other person subject
      to
      the foregoing restriction) until the end of such period.

     

    1.11 Delay
      of Registration.
      No
      Holder shall have any rights to take any actions to restrain, enjoin, or
      otherwise delay any registration as the result of any controversy that might
      arise with respect to the interpretation or implementation of this Section
      1.

     

    1.12 Termination
      of Registration Rights.
      No
      Holder shall be entitled to exercise any right provided for in this Section
      1 at
      any time, and the obligations of the Company to a Holder under this Section
      1
      shall terminate with respect to such Holder, when such Holder may sell all
      its
      Registrable Securities in a three (3) month period under Rule 144 of the Act
      (whether or not such Registrable Securities are then held in the form of Common
      Shares).

     

    
       

      
        
          Appendix
            B-11

        

        
           

          
            

          

        

        
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    2. Affirmative
      Covenants of the Company.
      The
      Company hereby covenants and agrees as follows:

     

    2.1 Annual
      Financial Information.
      The
      Company shall deliver to each Holder of at least ten thousand (10,000) (as
      adjusted for stock splits or recapitalizations) Registrable Securities (a
“Qualified
      Holder”)
      as soon
      as practicable after the end of each fiscal year of the Company, but in any
      event within 90 days thereafter, statements of operations, shareholders’
equity and cash flows of the Company for such year, and a balance sheet of
      the
      Company as of the end of such year, such year-end financial reports to be in
      reasonable detail, prepared in accordance with generally accepted accounting
      principles (“GAAP”),
      and
      audited by independent public accountants selected by the Company’s Board of
      Directors.

     

    2.2 Inspection.
      The
      Company shall permit each Qualified Holder, at such Qualified Holder’s expense,
      to visit and inspect the Company’s properties, to examine its books of account
      and records and to discuss the Company’s affairs, finances and accounts with its
      officers, all at such reasonable times as may be requested by the Qualified
      Holder; provided, however, that the Company shall not be obligated pursuant
      to
      this subsection to provide access to any information which it reasonably
      considers to be a trade secret or similar confidential information.

     

    2.3 Termination
      of Information Covenants and Confidentiality of Information.
      The
      covenants of the Company set forth in subsections 2.1 and 2.2 shall terminate
      as
      to the Qualified Holder and be of no further force or effect when the Company
      first becomes subject to the periodic reporting requirements of Section 12(b),
      12(g) or 15(d) of the Securities Exchange Act of 1934, as amended. Each
      Qualified Holder agrees that it will keep confidential and will not disclose
      or
      divulge any confidential, proprietary or secret information which such Purchaser
      may obtain from the Company, and which the Company has prominently marked
“confidential,”
      “proprietary”
or
      “secret”
or
      has
      otherwise identified as being such, pursuant to financial statements, reports
      and other materials submitted by the Company as required hereunder, unless
      such
      information is or becomes known to the Qualified Holder from a source other
      than
      the Company without violation of any rights of the Company, or is or becomes
      publicly known, or unless the Company gives its written consent to the Qualified
      Holder’s release of such information, except that no such written consent shall
      be required (and the Qualified Holder shall be free to release such information
      to such recipient) if such information is to be provided to a Qualified Holder’s
      counsel or accountant (and the provision of such information is directly
      necessary in order for such recipient provide services to Qualified Holder),
      or
      to an officer, director or partner of a Qualified Holder, provided that the
      Qualified Holder shall inform the recipient of the confidential nature of such
      information, and such recipient agrees in writing in advance of disclosure
      to
      treat the information as confidential.

     

    2.4 Issuance
      of Additional Units.
      Unless
      the Company either (i) has the registration statement declared effective
      within 120 days of the date hereof, or (ii)   becomes
      a
      reporting issuer in a province of Canada by making application with a securities
      regulatory authority to become a reporting issuer in a province of Canada or
      filing a prospectus with, and obtaining a receipt therefor from the securities
      regulatory authorities in a province of Canada, 
      then
      the
      Company shall issue to each Holder, without additional consideration, that
      number of Units equal to 10% of the number of Units purchased by Holder pursuant
      to the Subscription.  No fractional Units will be issued and the number of
      Units to be issued to a Holder shall be rounded down to the nearest whole
      number.

     

    
       

      
        
          Appendix
            B-12

        

        
           

          
            

          

        

        
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    3. General.

     

    3.1 Waivers
      and Amendments.
      With the
      written consent of the record holders of at least a majority of the Registrable
      Securities, the obligations of the Company and the rights of the parties under
      this Agreement may be waived (either generally or in a particular instance,
      either retroactively or prospectively, and either for a specified period of
      time
      or indefinitely), and with the same consent the Company, when authorized by
      resolution of its Board of Directors, may enter into a supplementary agreement
      for the purpose of adding any provisions to or changing in any manner or
      eliminating any of the provisions of this Agreement; provided, however, that
      no
      such modification, amendment or waiver shall reduce the aforesaid percentage
      of
      Registrable Securities without the consent of all of the Holders of the
      Registrable Securities. Notwithstanding the foregoing, subsections 2.1,
      2.2, and 2.3 may be amended only with the written consent of the Company and
      a
      majority of the shares then held by Qualified Holders. Upon the effectuation
      of
      each such waiver, consent, agreement of amendment or modification, the Company
      shall promptly give written notice thereof to the record holders of the
      Registrable Securities or Qualified Holders, as the case may be, who have not
      previously consented thereto in writing. This Agreement or any provision hereof
      may be changed, waived, discharged or terminated only by a statement in writing
      signed by the party against which enforcement of the change, waiver, discharge
      or termination is sought, except to the extent provided in this
      subsection 3.1. 

     

    3.2 Governing
      Law.
      This
      Agreement shall be governed in all respects by the laws of the State of Nevada
      without regard the principles of conflicts of law thereof.

     

    3.3 Successors
      and Assigns.
      Except
      as otherwise expressly provided herein, the provisions hereof shall inure to
      the
      benefit of, and be binding upon, the successors, assigns, heirs, executors
      and
      administrators of the parties hereto.

     

    3.4 Entire
      Agreement.
      Except
      as set forth below, this Agreement and the other documents delivered pursuant
      hereto constitute the full and entire understanding and agreement between the
      parties with regard to the subjects hereof and thereof, and this Agreement
      shall
      supersede and cancel all prior agreements between the parties hereto with regard
      to the subject matter hereof.

     

    3.5 Notices,
      etc.
      All
      notices and other communications required or permitted hereunder shall be in
      writing and shall be delivered by overnight courier service or mailed by first
      class mail, postage prepaid, certified or registered mail, return receipt
      requested, addressed (a) if to any Purchaser, at such party’s address as
      set forth in the Company’s records, or at such other address as such party shall
      have furnished to the Company in writing, or (b) if to the Company, at such
      address as the Company shall have furnished to the Purchaser in
      writing.

     

    3.6 Severability.
      In case
      any provision of this Agreement shall be invalid, illegal, or unenforceable,
      the
      validity, legality and enforceability of the remaining provisions of this
      Agreement or any provision of the other Agreement s shall not in any way be
      affected or impaired thereby.

     

    3.7 Titles
      and Subtitles.
      The
      titles of the sections and subsections of this Agreement are for convenience
      of
      reference only and are not to be considered in construing this
      Agreement.

     

    3.8 Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original, but all of which together shall constitute one
      instrument.

     

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      SIGNATURES ON NEXT PAGE -----

     

     

    
      
        Appendix
          B-13

      

      
         

        
          

        

      

      
        Calibre
          Registration Rights Agreement

      

       

    

    IN
      WITNESS
      WHEREOF, the parties hereto have executed this Agreement on the date set forth
      underneath their respective signatures below.

     

    

     

    “COMPANY”

    

    Calibre
      Energy, Inc.,

    a
      Nevada
      corporation 

    

    

    By:
      _________________________________

    Prentis
      B.
      Tomlinson, Jr.

    President

    

    Date:
      ____________________, 2006

    

    

    “HOLDER”

    

     

    If
      Holder is an individual, sign
      here:___________________________________________________________________________        

                                                     (Signature)

     

    Print
      Name:_________________________________________________________________________       

     

     

    If
      Holder is a company, trust or other entity, sign here:

     

     

    Print
      Entity
      Name:____________________________________________________________      

     

     

    By:_________________________________________________________________________        

                                                    (Signature)

     

     

    Print
      Name:__________________________________________________________________       

     

    Print
      Title:___________________________________________________________________       

     

    
       

      
        
          Appendix
            B-14

        

        
           

          
            

          

        

        
          Calibre
            Registration Rights Agreement

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