Document:

Exhibit 4.4

                       REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of May 21, 2001 by and between KFx Inc., a Delaware
corporation (the "Company"), and Stanley G. Tate ("Holder") to provide
Holder with certain registration rights relative to 14,888 shares of Common
Stock of KFx Inc. that Holder has the right to purchase pursuant to a
warrant provided by the Company to the Holder dated the date hereof (the
"Warrant").

         NOW, THEREFORE, in consideration of the mutual promises
hereinafter set forth, the parties hereto agree as follows:

                                 Article I

                            REGISTRATION RIGHTS

     Section 1.01.     Definitions.  For purposes of this Agreement:

          (a) Common Shares. The term "Common Shares" means shares of
     Common Stock, $.001 par value, of the Company.

          (b) Holder. The term "Holder" means any person owning of record
     Registrable Securities that have not been sold to the public or sold
     pursuant to Rule 144 promulgated under the Securities Act, or any
     assignee of record of such Registrable Securities to whom rights under
     this Agreement have been duly assigned in accordance with this
     Agreement and the Warrant.

          (c) Registrable Securities or Registrable Shares. The terms
     "Registrable Securities" or "Registrable Shares" means (i) all Common
     Shares of the Company that may hereafter be acquired by Holder
     pursuant to the exercise of the Warrant or any warrant that is issued
     by the Company to Holder as a replacement for all or any portion of
     the Warrant, (ii) all Common Shares of the Company that may hereafter
     be acquired by Holder pursuant to the Stock Purchase Agreement dated
     the date hereof to which the Company and Holder are parties, and (iii)
     any Common Shares of the Company issued as (or issuable upon the
     conversion or exercise of any warrant, right or other security which
     is issued as) a dividend or other distribution with respect to, or in
     exchange for or in replacement of, all such Common Shares described in
     clauses (i) and (ii) of this subsection (c); excluding in all cases,
     however, any Registrable Securities sold by a person in a transaction
     in which rights under this Article I are not assigned in accordance
     with this Agreement or any Registrable Securities sold to the public
     or sold pursuant to Rule 144 promulgated under the Securities Act.

          (d) Registration. The terms "register," "registration" and
     "registered" mean a registration effected by preparing and filing a
     registration statement in compliance with the Securities Act and the
     declaration or ordering of effectiveness of such registration
     statement.

          (e) Registration Expenses. The term "Registration Expenses" means
     all expenses incurred by the Company in complying with Section 1.02
     hereof, including, without limitation, all registration and filing
     fees, listing fees, printing expenses, fees and disbursements of
     counsel for the Company, blue sky fees and expenses, 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) and the expenses of
     underwriters customarily paid by similarly situated companies in
     connection with underwritten offerings of equity securities to the
     public (including any qualified independent underwriter required in
     connection with such underwritten offering), excluding any such fees
     based on the proceeds of sales of Registrable Securities by selling
     Holders.

          (f) Registration Statement. The term "Registration Statement"
     means any registration statement under the Securities Act for purposes
     of effecting a public offering of securities of the Company.

          (g) SEC. The term "SEC" means the U.S. Securities and Exchange
     Commission.

          (h) Securities Act. The term "Securities Act" means the
     Securities Act of 1933, as amended from time to time.

     Section 1.02.     Piggyback Registrations.

          (a) Right to Piggyback. The Company shall notify all Holders in
     writing at least thirty (30) days prior to filing any Registration
     Statement (including, but not limited to, Registration Statements
     relating to secondary offerings of securities of the Company, but
     excluding Registration Statements relating to any employee benefit
     plan or a corporate reorganization) and will afford each such Holder
     an opportunity to include in such Registration Statement all or any
     part of the Registrable Securities then held by such Holder. Each
     Holder desiring to include in any such Registration Statement all or
     any part of the Registrable Securities held by such Holder shall,
     within twenty (20) days after receipt of the above-described notice
     from the Company, so notify the Company in writing, and in such notice
     shall inform the Company of the number of Registrable Securities such
     Holder wishes to include in such Registration Statement. The Company
     thereupon will use its best efforts as a part of its filing of such
     Registration Statement to effect the registration under the Securities
     Act of all Registrable Securities which the Company has been so
     requested to register by the Holder, to the extent required to permit
     the disposition of the Registrable Securities so to be registered. If
     a Holder decides not to include all of its Registrable Securities in
     any Registration Statement thereafter filed by the Company, such
     Holder shall nevertheless continue to have the right to include any
     Registrable Securities in any subsequent Registration Statement or
     Registration Statements as may be filed by the Company with respect to
     offerings of its securities, all upon the terms and conditions set
     forth herein.

          (b) Underwriting. If a Registration Statement under which the
     Company gives notice under this Section 1.02 is for an underwritten
     offering, then the Company shall so advise the Holders. In such event,
     the right of any such Holder's Registrable Securities to be included
     in a registration pursuant to this Section 1.02 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. All Holders proposing to distribute
     their Registrable Securities through such underwriting shall enter
     into an underwriting agreement in customary form with the managing
     underwriter or underwriter(s) selected for such underwriting.
     Notwithstanding any other provision of this Agreement, if the managing
     underwriter(s) determine(s) in good faith that marketing factors
     require a limitation of the number of shares to be underwritten, then
     the managing underwriter(s) may exclude shares (including Registrable
     Securities) from the registration and the underwriting, and the number
     of shares that may be included in the registration and the
     underwriting shall be allocated, first, to the Company, and second,
     the maximum number of Registrable Securities requested to be included
     therein by the Holders and the maximum number of any other securities
     of the same class as the Registrable Securities ("Other Securities")
     requested to be included therein by other shareholders of the Company
     having registration rights ("Other Holders"), pro rata among the
     respective Holders and Other Holders on the basis of the number of
     Registrable Securities and Other Securities requested to be included
     in such registration by each such Holder and Other Holder. If any
     Holder disapproves of the terms of any such underwriting, such Holder
     may elect to withdraw all or any part of such Holder's Registrable
     Securities therefrom by written notice to the Company and the
     underwriter, delivered at any time prior to the effective date of the
     Registration Statement. Any Registrable Securities excluded or
     withdrawn from such underwriting shall be excluded and withdrawn from
     the registration. For any Holder that is a partnership or corporation,
     the partners, retired partners and shareholders of such Holder, or the
     estates and family members of any such partners and retired partners
     and any trusts for the benefit of any of the foregoing persons shall
     be deemed to be a single "Holder," and any pro rata reduction with
     respect to such "Holder" shall be based upon the aggregate amount of
     shares carrying registration rights owned by all entities and
     individuals included in such "Holder," as defined in this sentence.

          (c) Expenses. All Registration Expenses incurred in connection
     with a registration pursuant to this Section 1.02 shall be borne by
     the Company, except that notwithstanding anything to the contrary
     herein, if a Holder withdraws all or any part of such Holder's
     Registrable Securities from an underwriting at any time less than ten
     (10) business days prior to the effective date of the Registration
     Statement, such Holder shall pay its pro rata share (based on the
     number of Registrable Securities included in the Registration
     Statement on behalf of such Holder, or if no Registration Statement
     had been filed as of the date of such withdrawal, the number of
     Registrable Securities such Holder requested to be included in the
     Registration Statement) of all Registration Expenses, excluding all
     discounts, commissions or other amounts payable to underwriters or
     brokers in connection with the offering. Each Holder participating in
     a registration pursuant to this Section 1.02 shall bear such Holder's
     proportionate share (based on the total number of shares sold in such
     registration) of all discounts, commissions or other amounts payable
     to underwriters or brokers in connection with such offering.

     Section 1.03 Obligations of the Company. Whenever required to
effect the registration of any Registrable Securities under this Agreement,
the Company shall:

          (a) Prepare and file with the SEC a Registration Statement with
     respect to such Registrable Securities and use reasonable, diligent
     efforts to cause such Registration Statement to become effective.

          (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 securities covered by such Registration Statement.

          (c) Furnish to the Holders such number of copies of a prospectus,
     including a 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 the
     Registrable Securities owned by them that are included in such
     registration.

          (d) Use reasonable, diligent 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, provided that the Company shall
     not be required solely as a result of such Registration or as a
     condition thereto to qualify to do business or to file a general
     consent to service of process in any such 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(s) of such offering.

          (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 of 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, and at the request of each Holder promptly prepare and
     furnish to such Holder a reasonable number of copies of a supplement
     to or amendment of such prospectus as may be necessary 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 in the light
     of the circumstances then existing.

          (g) Use its best efforts to list such Registrable Securities on
     each securities exchange on which any equity security of the Company
     is then listed.

     Section 1.04      Obligations of the Holders.

          (a) It shall be a condition precedent to the obligations of the
     Company to take any action pursuant to Section 1.02 that the selling
     Holders furnish to the Company such information regarding themselves,
     the Registrable Securities held by them, and the intended method of
     disposition of such securities as is required to timely effect the
     registration of their Registrable Securities.

          (b) Each Holder delivering a written request to participate in an
     underwritten registered offering in accordance with Section 1.02
     shall, if requested by the Company, as soon as practicable after such
     delivery, execute and deliver to the Company a custody agreement and
     power of attorney in customary form satisfactory to the Company and
     any managing underwriter with respect to the Registrable Securities
     identified for sale by such Holder (a "Custody Agreement" and "Power
     of Attorney," respectively). Each Custody Agreement and Power of
     Attorney shall provide, among other things, that such Holder will
     deliver to and deposit in custody with the custodian named therein
     (which shall be designated by the Company) a certificate or
     certificates representing such Registrable Securities (duly endorsed
     in blank by the registered owner or owners thereof or accompanied by
     duly executed stock powers in blank) and irrevocably appoint such
     custodian and attorney-in-fact with full power and authority to act
     under the Custody Agreement and Power of Attorney, respectively, on
     the Holder's behalf with respect to matters specified therein,
     including the execution and delivery of an underwriting agreement.

          (c) Each Holder that has Registrable Securities included in any
     Registration Statement shall not (until further notice from the
     Company) effect sales thereof after receipt of notice from the Company
     to suspend sales to permit the Company to correct or update any
     Registration Statement, including any prospectus.

     Section 1.05. Delay of Registration. No Holder shall have any
right to obtain or seek an injunction restraining or otherwise delaying any
such registration as the result of any controversy that might arise with
respect to the interpretation or implementation of this Article I.

     Section 1.06  Indemnification.  In the event any  Registrable  Securities
are included in a  Registration Statement pursuant to Section 1.02:

          (a) By the Company. To the extent permitted by law, the Company
     will indemnify and hold harmless each Holder, the partners, officers,
     directors, legal counsel and accountants of each Holder, any
     underwriter (as defined in the Securities Act) for such Holder and
     each person, if any, who controls such Holder or underwriter within
     the meaning of the Securities Act or the Exchange Act against any
     losses, claims, expenses, damages, or liabilities (joint or several)
     to which they may become subject under the Securities Act, the
     Exchange Act or any other securities or other law of any jurisdiction,
     common law or otherwise, insofar as such losses, claims, expenses,
     damages, or liabilities (or actions proceedings or settlements in
     respect thereof) arise out of or are based upon any of the following
     statements, omissions or violations (collectively, "Violations" and,
     individually, a "Violation"):

               (i) any untrue statement or alleged untrue statement of a
          material fact contained in or incorporated by reference in any
          Registration Statement, including any preliminary prospectus or
          final prospectus contained therein or any amendments or
          supplements thereto or any document incorporated by reference
          therein;

               (ii) 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, or

               (iii) any violation or alleged violation by the Company of
          the Securities Act, the Exchange Act, or any other securities or
          other law of any jurisdiction, common law or otherwise, or any
          rule or regulation promulgated under the Securities Act, the
          Exchange Act or any such other laws, in connection with the
          offering covered by such Registration Statement;

         and the Company will reimburse each such Holder, partner, officer
         or director, underwriter or controlling person for any legal or
         other expenses reasonably incurred by them, as incurred, in
         connection with investigating or defending any such loss, claim,
         damage, liability or action; provided, however, that the indemnity
         agreement contained in this subsection 1.06(a) shall not apply to
         amounts paid in settlement of any such loss, claim, damage,
         liability or action if such settlement is effected without the
         consent of the Company (which consent shall not be unreasonably
         withheld), nor shall the Company be liable in any such case for
         any such loss, claim, damage, liability or action to the extent
         that it arises out of or is based upon a Violation which occurs in
         reliance upon and in conformity with written information furnished
         expressly for use in connection with such registration by such
         Holder, partner, officer, director, underwriter or controlling
         person of such Holder.

          (b) By Selling Holders. To the extent permitted by law, each
     selling Holder, severally and not jointly, will indemnify and hold
     harmless the Company, each of its directors, each of its officers who
     have signed the Registration Statement, each person, if any, who
     controls the Company within the meaning of the Securities Act, its
     legal counsel, its accountants, any underwriter and any other Holder
     selling securities under such Registration Statement or any of such
     other Holder's partners, directors or officers or any person who
     controls such Holder within the meaning of the Securities Act or the
     Exchange Act, against any losses, claims, damages or liabilities
     (joint or several) to which the Company or any such director, officer,
     controlling person, legal counsel, accountant, underwriter or other
     such Holder, partner or director, officer or controlling person of
     such other Holder may become subject under the Securities Act, the
     Exchange Act or any other securities or other law of any jurisdiction,
     common law or otherwise, insofar as such losses, claims, expenses,
     damages or liabilities (or actions in respect thereto) arise out of or
     are based upon any Violation, in each case to the extent (and only to
     the extent) that such Violation occurs in reliance upon and in
     conformity with written information furnished by such Holder expressly
     for use in connection with such registration; and each such Holder
     will reimburse any legal or other expenses reasonably incurred by the
     Company or any such director, officer, controlling person, legal
     counsel, accountant, underwriter or other Holder, partner, officer,
     director, legal counsel, accountant or controlling person of such
     other Holder in connection with investigating or defending any such
     loss, claim, damage, liability or action; provided, however, that the
     indemnity agreement contained in this subsection 1.06(b) shall not
     apply to amounts paid in settlement of any such loss, claim, 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 amounts payable by a Holder under
     this Section 1.07 in respect of any Violation shall not exceed the net
     proceeds received by such Holder in the registered offering out of
     which such Violation arises.

          (c) Notice. Promptly after receipt by an indemnified party under
     this Section 1.07 of notice of the commencement of any action
     (including any governmental action), such indemnified party will, if a
     claim in respect thereof is to be made against any indemnifying party
     under this Section 1.06, deliver to the indemnifying party a written
     notice of the commencement thereof and the indemnifying party shall
     have the right to participate in, and, to the extent the indemnifying
     party so desires, jointly with any other indemnifying party similarly
     noticed, to assume the defense thereof with counsel mutually
     satisfactory to the parties; provided, however, that an indemnified
     party shall have the right to retain its own 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 conflict of
     interests between such indemnified party and any other party
     represented by such counsel in such proceeding or if, and for such
     period, such indemnified party was required to retain counsel prior to
     the indemnifying party's retention of counsel. The failure to deliver
     written notice to the indemnifying party within a reasonable time of
     the commencement of any such action shall relieve such indemnifying
     party of its liability to the indemnified party under this Section
     1.06 only if and to the extent it is prejudicial to its ability to
     defend such action, and the omission to so deliver written notice to
     the indemnifying party will not relieve it of any liability that it
     may have to any indemnified party otherwise than under this Section
     1.06.

          (d) Defect Eliminated in Final Prospectus. The foregoing
     indemnity agreements of the Company and Holders are subject to the
     limitation that, insofar as they relate to any Violation made in a
     preliminary prospectus but eliminated or remedied in the amended
     prospectus on file with the SEC at the time the Registration Statement
     in question becomes effective or the amended prospectus filed with the
     SEC pursuant to SEC Rule 424(b) (the "Final Prospectus"), such
     indemnity agreement shall not inure to the benefit of any person if a
     copy of the Final Prospectus was furnished to the indemnified party
     and was not furnished to the person asserting the loss, liability,
     claim or damage at or prior to the time such action is required by the
     Securities Act.

          (e) Contribution. In order to provide for just and equitable
     contribution to joint liability under the Securities Act, in any case
     in which either (i) any Holder exercising rights under this Agreement,
     or any controlling person of any such Holder, makes a claim for
     indemnification pursuant to this Section 1.06 but it is judicially
     determined (by the entry of a final judgment or decree by a court of
     competent jurisdiction and the expiration of time to appeal or the
     denial of the last right of appeal) that such indemnification may not
     be enforced or is otherwise unavailable in such case notwithstanding
     the fact that this Section 1.06 provides for indemnification in such
     case, or (ii) contribution under the Securities Act may be required on
     the part of any such selling Holder or any such controlling person in
     circumstances for which indemnification is provided under this Section
     1.06; then, and in each such case, the Company and such Holder will
     contribute to the aggregate losses, claims, damages or liabilities to
     which they may be subject (after contribution from others) in such
     proportion so that such Holder is responsible for the portion
     represented by the percentage that the public offering price of its
     Registrable Securities offered by and sold under the Registration
     Statement bears to the public offering price of all securities offered
     by and sold under such Registration Statement, and the Company and
     other selling Holders are responsible for the remaining portion;
     provided, however, that, in any such case, (A) no such Holder will be
     required to contribute any amount in excess of the net proceeds
     received from the sale of all such Registrable Securities offered and
     sold by such Holder pursuant to such Registration Statement; and (B)
     no person or entity guilty of fraudulent misrepresentation (within the
     meaning of Section 11(f) of the Securities Act) will be entitled to
     contribution from any person or entity who was not guilty of such
     fraudulent misrepresentation.

          (f) Survival; Release. The obligations of the Company and Holders
     under this Section 1.06 shall survive the completion of any offering
     of Registrable Securities in a Registration Statement and otherwise.
     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 admits fault
     on behalf of the indemnified party or 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.

     Section 1.07. "Market Stand-Off" Agreement. Each Holder hereby
agrees that it shall not, to the extent requested by the Company or an
underwriter of securities of the Company, sell or otherwise transfer or
dispose of any Registrable Securities or other shares of stock of the
Company then owned by such Holder (other than to donees of the Holder who
agree to be similarly bound) for up to ninety (90) days following the
effective date of a Registration Statement of the Company for an
underwritten offering filed under the Securities Act; provided that all
officers and directors of the Company have entered into similar agreements.
In order to enforce the foregoing covenant, the Company shall have the
right to place restrictive legends on the certificates representing the
shares subject to this Section and to impose stop transfer instructions
with respect to the Registrable Securities and such other shares of each
Holder (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period.

     Section 1.08. Termination of the Company's Obligations. The
Company shall have no obligations pursuant to Section 1.02 with respect to
any Registrable Securities proposed to be sold by a Holder in a
registration pursuant to Section 1.02 if, in the opinion of counsel to the
Company, all such Registrable Securities proposed to be sold by a Holder
and all other Common Shares then owned by such Holder may be sold in a
three-month period without registration under the Securities Act pursuant
to Rule 144 under the Securities Act. In such event, such Holder shall not
be subject to the provisions of Section 1.07.

                                Article II

                                 AMENDMENT

     Section 2.01. Amendment. Any provision of this Agreement may be amended and
the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the Company and Holders holding Registrable Securities
representing more than fifty percent (50%) of all the Registrable
Securities (on an as-converted basis). Any amendment or waiver effected in
accordance with this Section 2.01 shall be binding upon each Holder and the
Company.

                                Article III

                             GENERAL PROVISIONS

     Section 3.01. Notices. Any and all notices required or permitted to be
given to a party pursuant to the provisions of this Agreement must be in
writing and will be effective and deemed to provide such party sufficient
notice under this Agreement on the earliest of the following: (i) at the
time of personal delivery, if delivery is in person; (ii) at the time of
transmission by facsimile, addressed to the other party at its facsimile
number, with confirmation of receipt made by both telephone and printed
confirmation sheet verifying successful transmission of the facsimile;
(iii) one (1) business day after deposit with an express overnight courier
for deliveries within a country, or three (3) business days after such
deposit for international deliveries or (iv) three (3) business days after
deposit in mail by certified mail (return receipt requested) or equivalent
for deliveries within a country.

         All notices for international delivery will be sent by facsimile
or by express courier. All notices not delivered personally or by facsimile
will be sent with postage and/or other charges prepaid and properly
addressed to the party to be notified at the following address or facsimile
number:

         Company: KFx Inc.
                  3300 East First Avenue, Suite 290
                  Denver, Colorado 80206
                  Facsimile:  (303) 293-8430
                  Attention:  Chief Financial Officer

         Holder:  Stanley G. Tate
                  1175 NE 125th Street
                  Suite 102
                  North Miami, FL  33161

     Any party may by notice so given change its address for future
notices hereunder. Notice shall conclusively be deemed to have been given
in the manner set forth above.

     Section 3.02. Entire Agreement. This Agreement and the Warrant constitute
and contain the entire agreement and understanding of the parties with
respect to the subject matter hereof and supersedes any and all prior
negotiations, correspondence, agreements, understandings, duties or
obligations between the parties respecting the subject matter hereof.

     Section 3.03. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware.

     Section 3.04. No Third Party Beneficiaries. This Agreement shall be
binding upon and inure solely to the benefit of the parties hereto and
their permitted assigns and nothing herein, express or implied, is intended
to or shall confer upon any other person any legal or equitable right,
benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

     Section 3.05. Successors and Assigns. The provisions of this Agreement
shall inure to the benefit of, and shall be binding upon, the successors
and permitted assigns of the parties hereto.

     Section 3.06. Headings. The descriptive headings contained in this
Agreement are for convenience of reference only and shall not affect in any
way the meaning or interpretation of this Agreement.

     Section 3.07. Counterparts. This Agreement may be executed in one or
more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original
but all of which taken together shall constitute one and the same
agreement.

     Section 3.08. Expenses. All costs and expenses, including, without
limitation, fees and disbursements of counsel, financial advisors and
accountants, incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such
costs and expenses.

     Section 3.09. Construction. Words used herein, regardless of the
gender specifically used, shall be deemed and construed to include any
other gender, masculine, feminine or neuter, as the context requires.

                [Remainder of Page Intentionally Left Blank]

         IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date and year first written above.

                   THE COMPANY:

                   KFX INC.

                   By:               /s/ Seth L. Patterson
                            ---------------------------------------------------
                            Name:    Seth L. Patterson
                                     ------------------------------------------
                            Title:   Executive Vice President and CFO
                                     ------------------------------------------

                   HOLDER:

                   /s/ Stanley G. Tate
                   ------------------------------------------------------------
                   Stanley G. Tate

             [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]Exhibit 4.5

                                  KFX INC.

               33,333 Warrants Each to Purchase One Share of
                          Common Stock of KFx Inc.

                                                         Warrants to Purchase
                                                                33,333 Shares

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
         BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "ACT"), OR ANY OF THE LAWS OF ANY STATE AND HAVE BEEN ISSUED
         PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT. THE
         SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED,
         SOLD OR TRANSFERRED EXCEPT IF (A) COVERED BY AN EFFECTIVE
         REGISTRATION STATEMENT UNDER THE ACT AND REGISTERED OR QUALIFIED
         UNDER APPLICABLE STATE SECURITIES LAWS, OR (B) THE CORPORATION HAS
         BEEN FURNISHED WITH AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO
         THE CORPORATION TO THE EFFECT THAT NO REGISTRATION OR
         QUALIFICATION IS LEGALLY REQUIRED FOR SUCH TRANSFER.

         FOR VALUE RECEIVED, KFx Inc., a Delaware corporation (the
"Company"), hereby certifies that Mark S. Sexton, or his registered assigns
as permitted herein (the "Holder") is entitled, subject to the provisions
of this Warrant Certificate, to purchase from the Company, at the times
specified herein, 33,333 fully paid and non-assessable shares of Common
Stock of the Company, par value $.001 per share (the "Common Stock"), at a
purchase price per share equal to the Exercise Price (as hereinafter
defined) (the "Warrants"). The number of shares of Common Stock to be
received upon the exercise of the Warrants are subject to adjustment from
time to time as hereinafter set forth.

                                 ARTICLE I

                                DEFINITIONS

         The following terms, as used herein, have the following meanings:

         "Act" means the Securities Act of 1933.

         "Board" means the board of directors of the Company.

         "Business Day" means any day except a Saturday, Sunday or other
day on which commercial banks in the City of New York are authorized by law
to close.

         "Commission" means the Securities and Exchange Commission.

         "Common Stock" means the Company's common stock, $.001 par value
per share.

         "Exercise Price" means $3.65 per Warrant Share, such Exercise
Price to be adjusted from time to time as provided herein.

         "Expiration Date" means the earlier of (i) 5:00 p.m. Denver,
Colorado time on May 24, 2006, and (ii) the date of its exercise in full.

         "Person" means an individual, a partnership, a corporation, a
limited liability company, a trust, a joint venture, an unincorporated
organization and a government or any department or agency thereof.

         "Warrant Shares" means the shares of Common Stock deliverable upon
exercise of the Warrants, as the number of such shares shall be adjusted
from time to time as provided herein, provided that if there is a change
such that the securities issuable upon exercise of the Warrants are issued
by an entity other than the Company or there is a change in the class of
securities so issuable, then the term "Warrant Shares" will mean the shares
of the security issuable upon exercise of the Warrants if such security is
issuable in shares, or will mean the smallest units in which such security
is issuable if such security is not issuable in shares.

                                 ARTICLE II

         Section 2.01.     Exercise of Warrants.

         (1) The Holder is entitled to exercise the Warrants in whole or in
part at any time, or from time to time, until the Expiration Date or, if
such day is not a Business Day, then on the next succeeding day that shall
be a Business Day. To exercise the Warrants, the Holder shall execute and
deliver to the Company a Warrant Exercise Notice substantially in the form
annexed hereto, together with this Warrant Certificate and the payment of
the applicable Exercise Price. Upon such delivery and payment, the Holder
shall be deemed to be the holder of record of the Warrant Shares subject to
such exercise, notwithstanding that the stock transfer books of the Company
shall then be closed or that certificates representing such Warrant Shares
shall not then be actually delivered to the Holder.

         (2) The Exercise Price may be paid in cash or by certified or
official bank check or bank cashier's check payable to the order of the
Company or by any combination of such checks. In addition, the Holder of
this Warrant may exercise this Warrant by surrendering it to the Company to
purchase a number of shares of Common Stock equal to the number of such
shares then purchasable upon exercise hereof less the number of such shares
equal to the quotient of the aggregate Exercise Price of all such shares
underlying this Warrant divided by the Fair Market Price per Share. Fair
Market Price per Share shall mean the average of the closing sales prices,
if available, or the average of the bid and asked prices for the Common
Stock (or its successor), on the principal market therefor for the five
trading days preceding the day which is one business day prior to the day
of exercise, or if no such price is available, as determined by the Board.
The Company shall pay any and all documentary, stamp or similar issue or
transfer taxes payable in respect of the issue or delivery of the Warrant
Shares.

         (3) If the Holder exercises the Warrants in part, this Warrant
Certificate shall be surrendered by the Holder to the Company and a new
Warrant Certificate of the same tenor and for the unexercised number of
Warrant Shares shall be executed by the Company. The Company shall register
the new Warrant Certificate in the name of the Holder or in such name or
names of its transferees as may be directed in writing by the Holder and
deliver the new Warrant Certificate to the Person or Persons entitled to
receive the same.

         (4) Upon surrender of this Warrant Certificate in conformity with
the foregoing provisions, the Company shall transfer to the Holder of this
Warrant Certificate appropriate evidence of ownership of the shares of
Common Stock or other securities or property (including any money) to which
the Holder is entitled, registered or otherwise placed in, or payable to
the order of, the name or names of the Holder or such transferee as may be
directed in writing by the Holder, and shall deliver such evidence of
ownership and any other securities or property (including any money) to the
Person or Persons entitled to receive the same, together with the amount in
cash in lieu of any fraction of a share as provided in Section 2.03 below.

         Section 2.02. Restrictive Legend. Certificates representing shares
of Common Stock issued pursuant to the Warrants shall bear a legend
substantially in the form of the legend set forth on the first page of this
Warrant Certificate.

         Section 2.03. Fractional Shares. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of the
Warrants and in lieu of delivery of any such fractional share upon any
exercise hereof, the Company shall pay to the Holder an amount in cash
equal to such fraction multiplied by the then current market price per
share of Common Stock.

         Section 2.04. Loss or Destruction of Warrant. Upon receipt by the
Company of evidence satisfactory to it (in the exercise of its reasonable
discretion) of the loss, theft, destruction or mutilation of this Warrant
Certificate, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Warrant Certificate, if mutilated, the Company shall execute and deliver a
new Warrant Certificate of like tenor and date.

         Section 2.05. Forfeiture. Except as otherwise provided in this
Warrant, the Warrants may be exercised at any time through the close of
business on May 24, 2006.

         Section 2.06. Effect of Reorganization, Reclassification,
Consolidation, Merger or Sale. If at any time while this Warrant is
outstanding there shall be any reorganization or reclassification of the
capital stock of the Company (other than a stock split, stock dividend or
other subdivision or combination of shares) or any consolidation or merger
of the Company with another corporation (other than a consolidation or
merger in which the Company is the surviving entity and which does not
result in any change in the Common Stock), or any sale or other disposition
by the Company of all or substantially all of its assets to any other
corporation, the Holder shall thereafter upon exercise of this Warrant be
entitled to receive the number of shares of stock or other securities or
property of the Company, or of the successor corporation resulting from
such consolidation or merger, as the case may be, to which the Warrant
Shares deliverable upon the exercise of this Warrant would have been
entitled upon such reorganization, reclassification of capital stock,
consolidation, merger, sale or other disposition if this Warrant had been
exercised immediately prior to such reorganization, reclassification of
capital stock, consolidation, merger, sale or other disposition. In any
such case, appropriate adjustment (as determined by the Board) shall be
made in the application of the provisions set forth in this Warrant with
respect to the rights and interests thereafter of the Holder to the end
that the provisions set forth in this Warrant (including those relating to
adjustments of the Exercise Price and the number of shares issuable upon
the exercise of this Warrant) shall thereafter be applicable, as near as
reasonably may be, in relation to any shares or other property thereafter
deliverable upon the exercise hereof as if this Warrant had been exercised
immediately prior to such reorganization, reclassification of capital
stock, consolidation, merger, sale or other disposition and the Holder
hereof had carried out the terms of the exchange as provided for by such
reorganization, reclassification of capital stock, consolidation or merger.

         Section 2.07. Adjustments for Stock Events. If at any time there
shall occur any stock split, stock dividend, reverse stock split or other
subdivision or combination of the Company's Common Stock (a "Stock Event"),
then the number of shares of Common Stock to be received by the holder of
this Warrant shall be appropriately adjusted such that the proportion of
the number of shares issuable hereunder to the total number of shares of
the Company (on a fully diluted basis) prior to such Stock Event is equal
to the proportion of the number of shares issuable hereunder after such
Stock Event to the total number of shares of the Company (on a
fully-diluted basis) after such Stock Event. No adjustment to the Exercise
Price shall be made in connection with any adjustment of the number of
shares of Common Stock receivable upon exercise of this Warrant, except
that the Exercise Price shall be proportionately decreased or increased
upon the occurrence of any Stock Event; however, in no event shall the
Exercise Price be less than the par value of the Common Stock.

         Section 2.08. Reservation of Common Stock. The Company will at all
times reserve and keep available for issuance upon the exercise of the
Warrant such number of its authorized but unissued shares of Common Stock
as will be sufficient to permit the exercise in full of the Warrant, and
when issued upon such exercise shall be validly issued, fully paid and
nonassessable.

                                ARTICLE III

                              NO VOTING RIGHTS

         Prior to the exercise of any Warrant, the Holder shall not, by
virtue hereof, be entitled to any rights as a stockholder of the Company,
including, without limitation, the right to vote, to receive dividends or
other distributions, to exercise any preemptive rights or to receive any
notice of meeting of stockholders or any notice of any proceedings of the
Company except as may be specifically provided for herein.

                                 ARTICLE IV

                              REPRESENTATIONS

         (a) The Holder of this Warrant acknowledges and represents:

                           (i) that neither this Warrant nor the Warrant
                  Shares have been registered under the Act, or any state
                  securities law and agrees not to sell, pledge,
                  distribute, offer for sale, transfer or otherwise dispose
                  of this Warrant or any Warrant Shares issued upon its
                  exercise in the absence of (A) an effective registration
                  statement as to this Warrant or such Warrant Shares under
                  the Act (or any similar statute then in effect) or any
                  state securities law, or (B) an opinion of counsel for
                  the Company to the effect that such registration is not,
                  under the circumstances, required.

                           (ii) THE OFFER AND SALE OF THE SECURITIES
                  EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
                  UNDER THE ACT, AND SUCH SECURITIES MAY NOT BE SOLD OR
                  TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION
                  STATEMENT UNDER SUCH ACT COVERING SUCH SALE OR TRANSFER
                  OR THE COMPANY RECEIVES AN OPINION OF COUNSEL (WHICH MAY
                  BE COUNSEL FOR THE COMPANY) STATING THAT SUCH SALE OR
                  TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
                  DELIVERY REQUIREMENTS OF SUCH ACT.

                           (iii) The Holder is acquiring this Warrant and
                  the Warrant Shares for its own account for investment and
                  not with a view to, or for sale in connection with, any
                  distribution thereof; nor with any present intention of
                  distributing or selling the same.

                           (iv) The Holder has made detailed inquiry
                  concerning the Company, its business and its personnel;
                  the officers of the Company have made available to the
                  Holder any and all written information which it has
                  requested and have answered to the Holder's satisfaction
                  all inquiries made by the Holder, and the Holder 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 and is able financially to bear the risks
                  thereof.

         (b) The Holder understands that the Company proposes to issue and
         deliver this Warrant and the Warrant Shares to the Holder pursuant
         to this Agreement without compliance with the registration
         requirements of the Act; that for such purpose the Company will
         rely upon the representations, warranties, covenants and
         agreements contained herein; and that such non-compliance with
         registration is not permissible unless such representations and
         warranties are correct and such covenants and agreements
         performed. The Holder is an "accredited investor" as such term is
         defined in Rule 501 under the Act.

         (c)The Holder understands that, under existing rules of the
         Commission, the Holder may be unable to sell this Warrant and the
         Warrant Shares except to the extent that this Warrant and the
         Warrant Shares may be sold (i) pursuant to an effective
         registration statement covering such securities pursuant to the
         Act or (ii) in a bona fide private placement to a purchaser who
         shall be subject to the same restrictions on any resale or (iii)
         subject to the restrictions contained in Rule 144 under the Act.

         (d)The Holder (either alone or together with its advisors) has
         sufficient knowledge and experience in financial and business
         matters so as to be capable of evaluating the merits and risks of
         its investment in this Warrant and the Warrant Shares and the
         Holder is capable of bearing the economic risks of such
         investment.

                                 ARTICLE V

                               NO IMPAIRMENT

         The Company will not, by amendment of its charter or through
reorganization, consolidation, merger, dissolution, sale of assets 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 of this Warrant against impairment.

                                 ARTICLE VI

                           LIQUIDATING DIVIDENDS

         If the Company pays a dividend or makes a distribution on the
Common Stock payable otherwise than in cash out of earnings or earned
surplus (determined in accordance with generally accepted accounting
principles), except for a stock dividend payable in shares of Common Stock
(a "Liquidating Dividend"), then the Company will pay or distribute to the
holder of this Warrant, upon the exercise hereof, in addition to the
Warrant Shares purchased upon such exercise, the Liquidating Dividend which
would have been paid to such holder if he had been the owner of record of
such shares of Common Stock immediately prior to the date on which a record
is taken for such Liquidating Dividend or, if no record is taken, the date
as of which the record holders of Common Stock entitled to such dividend or
distribution are to be determined.

                                ARTICLE VII

                        NOTICES OF RECORD DATE, ETC.

         In case:

                  (a) the Company shall take a record of the holders of its
         Common Stock (or other stock or securities at the time deliverable
         upon the exercise of this Warrant) for the purpose of entitling or
         enabling them to receive any dividend or other distribution, or to
         receive any other right, or

                  (b) of any capital reorganization of the Company, any
         reclassification of the capital stock of the Company, any
         consolidation or merger of the Company with or into another
         corporation (other than a consolidation or merger in which the
         Company is the surviving entity), or any transfer of all or
         substantially all of the assets of the Company, or

                  (c) of the voluntary or involuntary dissolution, liquidation
         or winding-up of the Company,

then, and in each such case, the Company will mail or cause to be mailed to
the Holder of this Warrant a notice specifying as the case may be, (i) the
date on which a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such
dividend, distribution or right, or (ii) the effective date on which such
reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place, and the time, if
any is to be fixed, as of which the holders of record of Common Stock (or
such other stock or securities at the time deliverable upon the exercise of
this Warrant) shall be entitled to exchange their shares of Common Stock
(or such other stock or securities) for securities or other property
deliverable upon such reorganization, reclassification, consolidation,
merger, transfer, dissolution, liquidation or winding-up. Such notice shall
be given at least ten (10) days prior to the record date or effective date
for the event specified in such notice.

                                ARTICLE VIII

                               MISCELLANEOUS

         Section 8.01. Amendment and Waiver. The provisions of the Warrant
may be amended and the Company may take any action herein prohibited, or
omit to perform any act herein required to be performed by it upon the
written consent of the holders of a majority of the outstanding Warrants
exercisable for a majority of the Warrant Shares.

         Section 8.02. Notices. Any notices required to be sent to the
Holder will be delivered to the address of the Holder shown on the books of
the Company. All notices referred to herein will be delivered in person,
sent by first-class mail, postage prepaid, or by recognized express courier
(such as Federal Express). Notice will be deemed to have been given upon
personal delivery, one business day after deposit with an express courier
or two business days after deposit in the mail.

         Section 8.03. Descriptive Headings; Governing Law. The descriptive
headings of the paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. The construction,
validity and interpretation of this Warrant will be governed by the laws of
the State of Delaware.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer this 25th day of May, 2001.

                                      KFx Inc.

                                      By  /s/ Seth L. Patterson
                                         -------------------------------
                                         Name: Seth L. Patterson
                                         Title: Executive Vice President
                                                & Chief Financial Officer

                                 EXHIBIT A

                          WARRANT EXERCISE NOTICE

            (To be executed only upon exercise of the Warrants)

To: KFx Inc.

         The undersigned irrevocably exercises the Warrants for the
purchase of __________ shares (the "Shares") of Common Stock, par value
$.001 per share, of KFx Inc. (the "Company") and agrees to make payment
therefor [in the amount of $______________] [in accordance with the
cashless exercise provisions of Section 2.01(2) of the within Warrant
Certificate], all on the terms and conditions specified in the within
Warrant Certificate, surrenders this Warrant Certificate and all right,
title and interest therein to the Company and directs that the Shares
deliverable upon the exercise of the Warrants be registered or placed in
the name and at the address specified below and delivered thereto.

Dated: ___________________, 20__.

                                       --------------------------------------
                                       (Signature of Owner)

                                       --------------------------------------
                                       (Street Address)

                                        -------------------------------------
                                       (City)       (State)        (Zip Code)

Securities and/or check to be issued to:

Please insert social security or identifying number:

Name:

Street Address:

City, State and Zip Code:

Any unexercised portion of the Warrants evidenced by the within Warrant
Certificate to be issued to:

Please insert social security or identifying number:

Name:

Street Address:

City, State and Zip Code:

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