Document:

<PAGE>

EXHIBIT 4.3

                   VOTING AND RIGHT OF FIRST REFUSAL AGREEMENT

         THIS VOTING AND RIGHT OF FIRST REFUSAL AGREEMENT (this "AGREEMENT") is
made and entered into as of the 12th day of December 2007 (the "EFFECTIVE
DATE"), by and among the persons listed on Exhibit A (each individually a
"STOCKHOLDER" and collectively, the "STOCKHOLDERS"), Pala Investments Holdings
Limited ("PALA"), and Reclamation Consulting And Applications, Inc. (the
"COMPANY"). Each of the Company, Stockholder and Pala, are individually each
referred to herein as a "PARTY" and are collectively referred to herein as the
"PARTIES." The Board of Directors of the Company is referred to herein as the
"BOARD."

                                    RECITALS

         WHEREAS, concurrently with the execution of this Agreement, the Company
and Pala have entered into a Secured Convertible Debenture Agreement dated
December 12, 2007 (the "DEBENTURE AGREEMENT"), pursuant to which Pala has agreed
to lend to the Company up to $5,000,000, on the terms and subject to the
conditions set forth in the Debenture Agreement; and

         WHEREAS, the Parties desire to provide Pala with the right, among other
rights, to designate the election of a certain member of the board of directors
of the Company (the "BOARD") in accordance with the terms of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing, and certain other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

1.       ELECTION OF DIRECTOR.
         ---------------------

         Each Party agrees to vote, or cause to be voted, all Shares (as defined
below) owned by such Party, or over which such Party has voting control, from
time to time and at all times, in whatever manner as shall be necessary to
ensure that at each annual or special meeting of stockholders at which an
election of directors is held or pursuant to any written consent of the
stockholders, one person designated by Pala (the "PALA DESIGNEE") is elected to
the Board. For purposes of this Agreement, the term "SHARES" shall mean and
include any securities by whatever name called of the Company the holders of
which are entitled to vote for members of the Board, now owned or subsequently
acquired by a Party, however acquired, whether through stock splits, stock
dividends, reclassifications, recapitalizations, similar events or otherwise.
All Parties agree that any Pala Designee, or any replacement thereto, serving as
a director on the Company's board is expected and required to act in the best
interests of Company and all of its shareholders, in accordance with his or her
fiduciary duties under applicable law.

<PAGE>

2.       REMOVAL.
         --------

         Each Party also agrees to vote, or cause to be voted, all Shares owned
by such Party, or over which such Party has voting control, from time to time
and at all times, in whatever manner as shall be necessary to ensure that:

                  (i)      no director elected pursuant to Section 1 of this
                           Agreement may be removed from office unless such
                           removal is directed or approved by the affirmative
                           vote of Pala or such director violates his or her
                           fiduciary duties to the Company;

                  (ii)     any vacancies created by the resignation, removal or
                           death of a director elected pursuant to Section 1
                           shall be filled pursuant to the provisions of this
                           Section 2; and

                  (iii)    upon the request of Pala to remove such director,
                           such director shall be removed and replaced in
                           accordance with Section 1 of this Agreement.

All Stockholders agree to execute any written consents required to perform the
obligations of this Agreement, and the Company agrees at the request of any
party entitled to designate directors to call a special meeting of stockholders
for the purpose of electing directors.

3.       AMENDMENT TO ARTICLES
         ---------------------

         Each Party agrees to vote or cause to be voted all Shares owned by such
Party, or over which such Party has voting control, in whatever manner as shall
be necessary to effect a reverse split and/or increase the number of authorized
shares of Common Stock to ensure that there will be sufficient authorized but
unissued shares of Common Stock available for conversion of indebtedness under
the Debenture Agreement outstanding at any given time and to maintain the
provisions in the Company's Articles of Incorporation set forth in Schedule K to
the Debenture Agreement, and to ensure that at all times during the term of this
Agreement the Bylaws of the Company permit telephonic meetings of the Board in
the manner permitted by applicable law.

4.       LEGEND ON SHARE CERTIFICATES.
         -----------------------------

         Each certificate representing any Shares shall be endorsed by the
Company with a legend reading substantially as follows:

                  "The securities evidenced hereby are subject to a Voting and
                  Right of First Refusal Agreement, a copy of which has been
                  filed with the Secretary of the Company and is available upon
                  request. By accepting any interest in the securities evidenced
                  by this Certificate, the person accepting such interest shall
                  be deemed to agree to and shall become bound by all the
                  provisions of the Voting and Right of First Refusal
                  Agreement."

                                      -2-
<PAGE>

5.       IRREVOCABLE PROXY
         -----------------

         Each Party to this Agreement hereby constitutes and appoints Pala, with
full power of substitution, as the proxy of the Party with respect to the
matters set forth herein, including without limitation, election of persons as
members of the Board in accordance with Section 1 hereto, a vote to effect a
reverse split and/or increase the number of authorized shares of Common Stock
pursuant to Section 3 hereof, and hereby authorizes Pala to represent and to
vote, if and only if the Party (i) fails to vote or (ii) attempts to vote
(whether by proxy, in person or by written consent), in a manner which is
inconsistent with the terms of this Agreement, all of such Party's Shares in
favor of the election of a person as a member of the Board determined pursuant
to and in accordance with the terms and provisions of this Agreement or for a
reverse split and/or the increase of authorized shares pursuant to and in
accordance with the terms and provisions of Sections 1 and 3, respectively, of
this Agreement. The proxy granted pursuant to the immediately preceding sentence
is given in consideration of the agreements and covenants of the Company and the
Parties in connection with the transactions contemplated by this Agreement and,
as such, is coupled with an interest and shall be irrevocable unless and until
this Agreement terminates or expires pursuant to Section 13 hereof. Each Party
hereto hereby revokes any and all previous proxies with respect to the Shares
and shall not hereafter, unless and until this Agreement terminates or expires
pursuant to Section 13 hereof, purport to grant any other proxy or power of
attorney with respect to any of the Shares, deposit any of the Shares into a
voting trust or enter into any agreement (other than this Agreement),
arrangement or understanding with any person, directly or indirectly, to vote,
grant any proxy or give instructions with respect to the voting of any of the
Shares, in each case, with respect to any of the matters set forth herein.

6.       SPECIFIC ENFORCEMENT.
         ---------------------

         It is agreed and understood that monetary damages would not adequately
compensate an injured Party for the breach of this Agreement by any Party, that
this Agreement shall be specifically enforceable, and that any breach or
threatened breach of this Agreement shall be the proper subject of a temporary
or permanent injunction or restraining order. Further, each Party hereto waives
any claim or defense that there is an adequate remedy at law for such breach or
threatened breach.

7.       RESTRICTIONS ON THE TRANSFER OF SHARES.
         ---------------------------------------

         Except as expressly permitted by this Agreement, other than in
connection with a Permitted Distribution, no Stockholder shall make, or directly
or indirectly permit to be made, a sale, transfer, conveyance, assignment or
other disposition (a "DISPOSITION") of any Shares held by such Stockholder. For
purposes of this Agreement, a "PERMITTED DISPOSITION" means the Disposition of
Shares by a Stockholder through any of the following mechanisms:

                                      -3-
<PAGE>

                  (i)      any Disposition of the Stockholder to any of such
                           Stockholder's spouse, brothers, sisters, ancestors,
                           descendants, or other relatives, or to any company or
                           trust affiliated with any such person, provided that
                           any such recipient agrees to be bound by the terms
                           and conditions of this Agreement relating to
                           Stockholders,

                  (ii)     any Disposition by the Stockholder of the Shares to a
                           company, trust or other entity affiliated with the
                           Stockholder or any of such Stockholder's spouse,
                           brothers, sisters, ancestors, descendants, or other
                           relatives, or to any company or trust affiliated with
                           any such person, provided that any such recipient
                           agrees to be bound by the terms and conditions of
                           this Agreement relating to Stockholders

                  (iii)    any Disposition pursuant to a bona fide pledge of all
                           or any portion of Shares by the Stockholder as
                           security for any loan to the Company or any
                           subsidiary or affiliate thereof, or any other bona
                           fide pledge of such Shares, if made in accordance
                           with the terms, provisions, and conditions of this
                           Agreement.

8.       RIGHTS OF FIRST REFUSAL - TRANSFER OF SHARES
         --------------------------------------------

         (a) In the event that any Stockholder desires or is required to sell or
otherwise transfer all or any portion of his or her Shares, other than pursuant
to a Permitted Disposition (such Stockholder being hereinafter referred to as a
"SELLING STOCKHOLDER"), such Selling Stockholder shall promptly deliver notice
(a "SELLING STOCKHOLDER NOTICE") of such fact to Pala, which Selling Stockholder
Notice shall state the terms of sale, including the desired purchase price,
relating to the sale of such Pala. Within fifteen (15) business days after
receipt of the Selling Stockholder Notice by the other Party, Pala may offer to
purchase all or any portion of such Selling Stockholder's Shares in accordance
with the provisions of this Agreement. For the purposes of this Agreement, a
"business day" shall be any day that is not a Saturday or Sunday or a U.S.
Federal legal holiday.

         (b) If after such fifteen (15) business-day period elapses not all of
the Shares which were offered in the Selling Stockholder Notice are subscribed
for by Pala, then the Selling Stockholder shall be entitled to sell or transfer
his or her Shares to any third party who offers to purchase them for a price
equal to or above the purchase price contained in the Selling Stockholder
Notice, PROVIDED, that such purchase and sale of the Shares shall be in
compliance with all applicable federal and state securities laws and the
purchase and sale takes place within a period of forty five (45) business days
from Pala's receipt of the Selling Stockholder Notice. . If, at any time during
the negotiation of the sale of such Selling Stockholder's Shares with a third
party, the Selling Stockholder offers a purchase price which is less than the
price set forth in the Selling Stockholder Notice or on terms which are more
favorable than those originally proposed, then the Selling Stockholder shall be
obligated to first re-offer the Shares to Pala pursuant to this Section 8, but
at the lower purchase price and/or under such more favorable conditions.

                                      -4-
<PAGE>

         (c) On the closing date designated in the Selling Stockholder Notice,
such date to be no longer than thirty (30) business days from the Selling
Stockholder Notice, or otherwise agreed upon between the Selling Stockholder and
Pala, the Selling Stockholder shall deliver against receipt of the purchase
price therefor by cash or certified or bank cashier's check or by wire or
interbank transfer of funds, or a note or other means of payment of the purchase
price acceptable to the Selling Stockholder, the certificate or certificates
representing the Shares offered which Pala elected to purchase in accordance
with this Section 8. Such Shares presented shall be free and clear of all liens,
restrictions or encumbrances (other than those restrictions imposed hereby or
those disclosed in the Selling Stockholder Notice) and properly endorsed for
transfer, with any transfer and documentary stamps affixed as required pursuant
to applicable law, and all applicable stock transfer taxes paid, in a form such
that upon presentation to the Company's transfer agent the Shares represented
thereby may be registered in the names of the respective purchasers.

9.       PERMITTED PLEDGES OF SHARES.
         ----------------------------

         In the event that any Stockholder desires to pledge or hypothecate his
Shares to any person or entity who or which is not a party to this Agreement (a
"PLEDGEE"), he may do so PROVIDED that any instrument creating such pledge of
Shares shall expressly state that: (i) the rights and obligations which such
Pledgee acquires in and to the Shares shall be subject to all obligations,
limitations and restrictions imposed upon such Stockholder pursuant to this
Agreement.

10.      EXECUTION BY THE COMPANY.
         -------------------------

         The Company, by its execution in the space provided below, agrees that
it will cause the certificates evidencing the Shares to bear the legend required
by Section 3 of this Agreement, and it shall supply, free of charge, a copy of
this Agreement to any holder of a certificate evidencing shares of capital stock
of the Company upon written request from such holder to the Company at its
principal office. The Parties hereto do hereby agree that the failure to cause
the certificates evidencing the shares of Common Stock to bear the legend
required by Section 3 of this Agreement and/or failure of the Company to supply,
free of charge, a copy of this Agreement as provided under this Section 10 shall
not affect the validity or enforcement of this Agreement.

11.      CAPTIONS.
         ---------

         The captions, headings and arrangements used in this Agreement are for
convenience only and do not in any way limit or amplify the terms and provisions
hereof.

12.      NOTICES.
         --------

         Any notice, request, instruction, or other document required by the
terms of this Agreement, or deemed by any of the Parties hereto to be desirable,
to be given to any other Party hereto shall be in writing and shall be given by
facsimile, personal delivery, overnight delivery, or mailed by registered or
certified mail, postage prepaid, with return receipt requested, to the following
addresses:

                                      -5-
<PAGE>

                  IF TO PALA:
                  -----------

                           Pala Investments Holdings Limited
                           12 Castle Street
                           St Helier
                           Jersey
                           JE2 3RT
                           Channel Islands
                           Fax: +44 7534 639 870

                  With a copy (which shall not constitute notice) to:

                           Pala Investments AG
                           19 Dammstrasse
                           6300 Zug, Switzerland
                           Fax: +41 41 560 9071

                  IF TO THE COMPANY OR A STOCKHOLDER:
                  -----------------------------------

                           Reclamation Consulting and Applications, Inc.
                           940 Calle Amanecer, Suite E
                           San Clemente, CA  92673
                           Attn:    Mr. Michael Davies, CEO
                           Fax: (949) 542-7444

                  With a copy (which shall not constitute notice) to:

                           August Law Group, P.C.
                           19200 Von Karman Avenue, Suite 500
                           Irvine, California 92612
                           Tel: (949) 752-7772
                           Fax: (949) 752-7776
                           Attn:    Kenneth S. August, Esq.

The persons and addresses set forth above may be changed from time to time by a
notice sent as aforesaid. If notice is given by facsimile, personal delivery, or
overnight delivery in accordance with the provisions of this Section, said
notice shall be conclusively deemed given at the time of such delivery. If
notice is given by mail in accordance with the provisions of this Section, such
notice shall be conclusively deemed given seven (7) days after deposit thereof
in the United States mail.

                                      -6-
<PAGE>

13.      TERM.
         -----

         This Agreement shall be effective only if the Debenture Agreement is
fully executed by both parties thereto. This Agreement shall terminate and be of
no further force or effect upon the later of:

                  (i)      the date on which the Notes issued under the
                           Debenture Agreement have been paid in full, where
                           Pala has not elected to convert the Notes into Common
                           Stock; and

                  (ii)     the date on which the number of Shares beneficially
                           owned by Pala is less then ten percent (10%) of the
                           issued and outstanding shares of Common Stock of the
                           Company, as determined pursuant to Rule 13d-3
                           promulgated under the Exchange Act of 1934, as
                           amended, and assuming for the purposes of such
                           determination only that the Conversion Right
                           Commencement Date, as such term is defined by the
                           Debenture Agreement, occurred on the Effective Date
                           of this Agreement.

Notwithstanding the foregoing, this Agreement shall earlier terminate and be of
no further force or effect in the event of a material breach by Pala of the
terms and conditions of the Debenture Agreement if such breach is not cured by
Pala within fourteen (14) days following delivery of written notice to Pala of
such breach.

14.      MANNER OF VOTING.
         -----------------

         The voting of Shares pursuant to this Agreement may be effected in
person, by proxy, by written consent or in any other manner permitted by the
Bylaws of the Company and applicable law.

15.      AMENDMENTS AND WAIVERS.
         -----------------------

         Any term of this Agreement may be amended and the observance of any
term hereof may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with the written consent of each of
the Parties. Any amendment or waiver effected in accordance with this Section 15
shall be binding upon the Parties hereto and their respective heirs, successors
and assigns. If additional parties Shares, then each such purchaser shall become
a party to this Agreement as a "PARTY" hereunder, without the need for any
consent, approval or signature of any Party when such purchaser has both: (a)
purchased Shares and (b) executed one or more counterpart signature pages to
this Agreement or a joinder agreement binding such purchaser to the terms of
this Agreement.

                                      -7-
<PAGE>

16.      STOCK SPLITS, STOCK DIVIDENDS, ETC.
         -----------------------------------

         In the event of any issuance of shares of the Company's voting
securities hereafter to any of the Parties hereto (including, without
limitation, in connection with any stock split, stock dividend,
recapitalization, reorganization, or the like), such shares shall become subject
to this Agreement and shall be endorsed with the legend set forth in Section 4.

17.      INFORMATION RIGHTS.
         -------------------

         During the term of this Agreement, the Company shall provide to Pala a
monthly sales reports and financial statements, which shall be delivered to
Pala, in form and substance acceptable to Pala in its reasonable discretion, no
later than fifteen (15) days following the end of each month.

18.      RIGHT OF FIRST REFUSAL - FINANCING
         ----------------------------------

During the term of this Agreement, the Company covenants and agrees to promptly
notify (in no event later than five (5) trading days after making or receiving
an applicable offer) in writing (a "RIGHTS NOTICE") Pala of the terms and
conditions of any proposed Subsequent Financing (as defined below). The Rights
Notice shall describe, in reasonable detail, the proposed Subsequent Financing
and include, the proposed closing date of the Subsequent Financing. The Rights
Notice shall provide Pala an option (the "RIGHTS OPTION") during the fifteen
(15) trading days following delivery of the Rights Notice (the "OPTION PERIOD")
to inform the Company whether Pala will purchase the securities being offered in
such Subsequent Financing on substantially the same terms and conditions as
contemplated by such Subsequent Financing. If the Company does not receive
notice of exercise of the Rights Option from Pala within the Option Period, the
Company shall have the right to proceed with the Subsequent Financing on
substantially the terms described in the Rights Notice. For purposes of this
Agreement, a "SUBSEQUENT FINANCING" shall be defined as any subsequent offer or
sale to, or exchange with (or other type of distribution to), any third party by
the Company of its common stock, preferred stock or any securities convertible,
exercisable or exchangeable into common stock or preferred stock, including
convertible and non-convertible debt securities other than a Permitted Financing
(as defined in Subsection 6.1.9 of the Debenture Agreement) or any Permitted
Indebtedness (as defined in Subsection 6.2.1 of the Debenture Agreement).

19.      DISTRIBUTION AGREEMENT
         ----------------------

         During the term of this Agreement, the Company agrees to provide Pala
or one of its subsidiaries with the opportunity to enter into a non-exclusive
distribution agreement with the Company on terms and conditions no less
favorable that the Company provides to any other third party distributor of the
Company's products.

                                      -8-
<PAGE>

20.      CONFIDENTIALITY
         ---------------

         Pala will hold and will cause its auditors, attorneys, financial
advisors, bankers and other consultants, affiliates and advisors to hold in
strict confidence, unless compelled to disclose by judicial or administrative
process or, in the reasonable opinion of its counsel, by other requirements of
law, all documents and information concerning the Company and the Shareholders
furnished it by the Company, the Shareholders or any of their representatives
pursuant to this Agreement (except to the extent that such information can be
shown to have been (i) previously known by Pala, (ii) in the public domain
through no fault of Pala, or (iii) later lawfully acquired from other sources by
Pala), and Pala will not release or disclose such information to any other
person, except its auditors, attorneys, financial advisors, bankers and other
consultants, affiliates and advisors in connection with this Agreement. Pala
acknowledges that it has received and will continue to receive non-public
material information regarding the Company, and Pala shall not, and shall take
reasonable steps to assure that its auditors, attorneys, financial advisors,
bankers and other consultants, affiliates and advisors do not, use any such
non-public material information in contravention of applicable securities laws
or for any other purpose other then protecting the rights of Pala under this
Agreement.

21.      SEVERABILITY.
         -------------

         Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be held to be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

22.      BINDING EFFECT.
         ---------------

         In addition to any restriction on transfer that may be imposed by any
other agreement by which any Party hereto may be bound, this Agreement shall be
binding upon the Parties, their respective heirs, successors and assigns, and to
such additional individuals or entities that may become stockholders of the
Company; provided that for any such transfer of the Stockholder Shares to be
deemed effective, the transferee shall have executed and delivered a signature
page to be included as a counterpart to this Agreement, after which execution
and delivery such transferee shall be deemed to be a Party hereto as if such
transferee was an original signatory hereto.

23.      GOVERNING LAW AND VENUE.
         ------------------------

         This Agreement shall be governed by and construed in accordance with
the internal laws of the State of California applicable to the performance and
enforcement of contracts made within such state, without giving effect to the
law of conflicts of laws applied thereby. In the event that any dispute shall
occur between the Parties arising out of or resulting from the construction,
interpretation, enforcement or any other aspect of this Agreement, the Parties

                                      -9-
<PAGE>

hereby agree to accept the exclusive jurisdiction of the Courts of the State of
California sitting in and for the County of Orange. In the event any Party shall
be forced to bring any legal action to protect or defend its rights hereunder,
then the prevailing Party in such proceeding shall be entitled to reimbursement
from the non-prevailing Party of all fees, costs and other expenses (including,
without limitation, the reasonable expenses of its attorneys) in bringing or
defending against such action.

24.      ENTIRE AGREEMENT.
         -----------------

         This Agreement and the documents referred to herein constitute the
entire agreement of the Parties as it relates to the election of the Nominees
and does hereby supersede all other agreements of the Parties relating to the
subject matter hereof.

25.      COUNTERPARTS.
         -------------

         This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

26.      ATTORNEY REPRESENTATION.
         ------------------------

         Each Shareholder understands and agrees that the August Law Group, P.C.
represents the Company and not any Shareholder.

SIGNATURES ON NEXT PAGE

                                      -10-
<PAGE>

         IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first above written.

PALA:

         PALA INVESTMENTS HOLDINGS LIMITED

         /s/ Susan Garrod
         -------------------------------
         By: Susan Garrod
         Its: Executive Director

THE COMPANY:

         RECLAMATION CONSULTING AND APPLICATIONS, INC.,

             Michael Davies
         ------------------------------
         By: /s/ Michael Davies
         Its: Chief Executive Officer

THE STOCKHOLDERS:

         /s/ Michael Davies
         ------------------------------
         Michael C. Davies

         /s/ Gordon Davies
         ------------------------------
         Gordon W. Davies

         /s/ Paul Hughes
         ------------------------------
         Paul Hughes

         /s/ Sally Holden
         ------------------------------
         Sally Holden

         /s/ Paul Hazell
         ------------------------------
         Paul Hazell

         CANVASBACK COMPANY LIMITED

         /s/ Bernadine Romney
         ------------------------------
         By: B Romney
         Its: Director

                                      -11-
<PAGE>

                                    EXHIBIT A
                                    ---------

                    LIST OF STOCKHOLDERS SUBJECT TO AGREEMENT
                    -----------------------------------------

1. Michael C. Davis.

2. Gordon W. Davies

3. Paul Hughes

4. Sally Holden

5. Paul Hazell

6. Canvasback Company Limited<PAGE>

EXHIBIT 4.4

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

                  This Registration Rights Agreement (this "AGREEMENT") is made
and entered into as of December 12, 2007, by and among Reclamation Consulting
and Applications, Inc., a Colorado corporation (the "Company"), and Pala
Investments Holdings Limited (the "Investor").

                  This Agreement is being entered into pursuant to the Secured
Convertible Debenture Agreement dated as of the date hereof between the Company
and the Investor (the "Debenture Agreement").

                  The Company and the Investor hereby agree as follows:

          1.      DEFINITIONS.
                  ------------

                  Capitalized terms used and not otherwise defined herein shall
have the meanings given such terms in the Agreement. As used in this Agreement,
the following terms shall have the following meanings:

                  "ADVICE" shall have meaning set forth in Section 3(m).

                  "AFFILIATE" means, with respect to any Person, any other
Person that directly or indirectly controls or is controlled by or under common
control with such Person. For the purposes of this definition, "CONTROL," when
used with respect to any Person, means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms of "AFFILIATED," "CONTROLLING" and "CONTROLLED" have
meanings correlative to the foregoing.

                  "BOARD" shall have meaning set forth in Section 3(n).

                  "BUSINESS DAY" means any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
state of California generally are authorized or required by law or other
government actions to close.

                  "CLOSING DATE" means the date of the Debenture Agreement.

                  "COMMISSION" means the Securities and Exchange Commission.

                  "COMMON STOCK" means the Company's Common Stock, par value
$0.001 per share.

<PAGE>

                  "EFFECTIVENESS DATE" means with respect to the Registration
Statement the date which is within three (3) Business Days of the date on which
the Commission informs the Company that the Commission (i) will not review the
Registration Statement or (ii) that the Company may request the acceleration of
the effectiveness of the Registration Statement and the Company makes such
request.

                  "EFFECTIVENESS PERIOD" shall have the meaning set forth in
Section 2.

                  "EVENT" shall have the meaning set forth in Section 7(d).

                  "EVENT DATE" shall have the meaning set forth in Section 7(d).

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                  "FILING DATE" means the sixtieth (60th) day following the
Investor's delivery of the Registration Demand Notice to the Company.

                  "HOLDER" or "HOLDERS" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "INDEMNIFIED PARTY" shall have the meaning set forth in
Section 5(c).

                  "INDEMNIFYING PARTY" shall have the meaning set forth in
Section 5(c).

                  "LOSSES" shall have the meaning set forth in Section 5(a).

                  "PERSON" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "PROCEEDING" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

                  "PROSPECTUS" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference in such Prospectus.

                                      -2-
<PAGE>

                  "REGISTRABLE SECURITIES" means (i) the shares of Common Stock
issuable upon conversion of the Notes issued to the Investor pursuant to the
Debenture Agreement and (ii) the shares of Common Stock issuable upon exercise
of the Warrants and the Additional Warrants.

                  "REGISTRATION DEMAND NOTICE" means a written notice sent by
the Investor to the Company demanding the Company to file a registration
statement pursuant to this agreement, which notice shall not be dated prior to
the Conversion Rights Commencement Date, as such term is defined in the
Debenture Agreement.

                  "REGISTRATION STATEMENT" means the registration statements and
any additional registration statements contemplated by Section 2, including (in
each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference in such
registration statement.

                  "RULE 144" means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "RULE 158" means Rule 158 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "RULE 415" means Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "RULE 424" means Rule 424 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

                  "SPECIAL COUNSEL" means Dorsey & Whitney LLP.

                  "WARRANTS" and "ADDITIONAL WARRANTS" means the warrants to
purchase shares of Common Stock issued to the Investor pursuant to the Debenture
Agreement.

         2.       RESALE REGISTRATION.
                  --------------------

                  On or prior to the Filing Date the Company shall prepare and
file with the Commission a "resale" Registration Statement providing for the
resale of all Registrable Securities for an offering to be made on a continuous
basis pursuant to Rule 415. The Registration Statement shall be on Form SB-2
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form SB-2, in which case such registration shall be on
another appropriate form in accordance with the Securities Act and the rules

                                      -3-
<PAGE>

promulgated thereunder). The Company shall use its reasonable best efforts to
cause the Registration Statement to be declared effective under the Securities
Act as promptly as possible after the filing thereof, but in any event prior to
the Effectiveness Date, and to keep such Registration Statement continuously
effective under the Securities Act until such date as is the earlier of (x) the
date when all Registrable Securities covered by such Registration Statement have
been sold (y) the date on which the Registrable Securities may be sold without
any restriction pursuant to Rule 144(k) as determined by the counsel to the
Company pursuant to a written opinion letter, addressed to the Company's
transfer agent to such effect or (z) June 11, 2011 (the "EFFECTIVENESS Period").

         3.       REGISTRATION PROCEDURES.
                  ------------------------

                  In connection with the Company's registration obligations
hereunder, the Company shall:

                  (a) Prepare and file with the Commission on or prior to the
Filing Date, a Registration Statement on Form SB-2 (or if the Company is not
then eligible to register for resale the Registrable Securities on Form SB-2
such registration shall be on another appropriate form in accordance with the
Securities Act and the rules promulgated thereunder) in accordance with the
method or methods of distribution thereof as specified by the Holders (except if
otherwise directed by the Holders), and use its reasonable best efforts to cause
the Registration Statement to become effective and remain effective as provided
herein; PROVIDED, HOWEVER, that not less than five (5) Business Days prior to
the filing of the Registration Statement or any related Prospectus or any
amendment or supplement thereto (including any document that would be
incorporated therein by reference), the Company shall (i) furnish to the Holders
care of the Special Counsel, copies of all such documents proposed to be filed,
which documents (other than those incorporated by reference) will be subject to
the review of such Holders and such Special Counsel, and (ii) cause its officers
and directors, counsel and independent certified public accountants to respond
to such inquiries as shall be necessary, in the reasonable opinion of Special
Counsel, to conduct a reasonable investigation within the meaning of the
Securities Act. Unless otherwise advised by outside counsel to the Company, the
Company shall not file the Registration Statement or any such Prospectus or any
amendments or supplements thereto to which the Holders of a majority of the
Registrable Securities or any Special Counsel shall reasonably object in writing
within three (3) Business Days of their receipt thereof.

                  (b) (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements as necessary in
order to register for resale under the Securities Act all of the Registrable
Securities; (ii) cause the related Prospectus to be amended or supplemented by
any required Prospectus supplement, and as so supplemented or amended to be
filed pursuant to Rule 424 (or any similar provisions then in force) promulgated

                                      -4-
<PAGE>

under the Securities Act; (iii) respond as promptly as possible, but in no event
later than thirty (30) Business Days, to any comments received from the
Commission with respect to the Registration Statement or any amendment thereto
and as promptly as possible provide the Holders care of the Special Counsel true
and complete copies of all correspondence from and to the Commission relating to
the Registration Statement; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement
during the applicable period in accordance with the intended methods of
disposition by the Holders thereof set forth in the Registration Statement as so
amended or in such Prospectus as so supplemented.

                  (c) Notify the Holders of Registrable Securities to be sold
and any Special Counsel as promptly as possible (and, in the case of (i)(A)
below, not less than five (5) days prior to such filing) and (if requested by
any such Person) confirm such notice in writing no later than one (1) Business
Day following of the day (i)(A) when a Prospectus or any Prospectus supplement
or post-effective amendment to the Registration Statement is filed; (B) when the
Commission notifies the Company whether there will be a "review" of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement and (C) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state governmental authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) if at any time any of the representations and warranties of the
Company contained in any agreement contemplated hereby ceases to be true and
correct in all material respects; (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (vi) of the occurrence of any event that makes any statement made
in the Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

                  (d) Use its reasonable best efforts to avoid the issuance of,
or, if issued, obtain the withdrawal of, (i) any order suspending the
effectiveness of the Registration Statement or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

                  (e) If requested by the Holders of a majority in interest of
the Registrable Securities, (i) promptly incorporate in a Prospectus supplement
or post-effective amendment to the Registration Statement such information as
the Company reasonably agrees should be included therein and (ii) make all
required filings of such Prospectus supplement or such post-effective amendment
as soon as practicable after the Company has received notification of the
matters to be incorporated in such Prospectus supplement or post-effective
amendment.

                                      -5-
<PAGE>

                  (f) Furnish to each Holder and any Special Counsel, without
charge, at least one conformed copy of each Registration Statement and each
amendment thereto, including financial statements and schedules, all documents
incorporated or deemed to be incorporated therein by reference, and all exhibits
to the extent requested by such Person (including those previously furnished or
incorporated by reference) promptly after the filing of such documents with the
Commission.

                  (g) Promptly deliver to each Holder and any Special Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably request; and the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto.

                  (h) Prior to any public offering of Registrable Securities,
use its reasonable best efforts to register or qualify or cooperate with the
selling Holders and any Special Counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any Holder requests in
writing, to keep each such registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and to use commercially
reasonable efforts to enable the disposition in such jurisdictions of the
Registrable Securities covered by a Registration Statement; PROVIDED, HOWEVER,
that the Company shall not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified or to take any action that
would subject it to general service of process in any such jurisdiction where it
is not then so subject or subject the Company to any material tax in any such
jurisdiction where it is not then so subject.

                  (i) Cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold pursuant to a Registration Statement, which certificates shall be free
of all restrictive legends (provided that the issuance of such unlegended
certificates is in compliance with applicable securities laws), and to enable
such Registrable Securities to be in such denominations and registered in such
names as any Holder may request in writing at least two (2) Business Days prior
to any sale of Registrable Securities.

                  (j) Upon the occurrence of any event contemplated by Section
3(c)(vi), as promptly as possible, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus
will contain 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,
in the light of the circumstances under which they were made, not misleading.

                                      -6-
<PAGE>

                  (k) Use its reasonable best efforts to cause all Registrable
Securities relating to the Registration Statement to be listed on the OTC
Bulletin Board or any other securities exchange, quotation system or market, if
any, on which similar securities issued by the Company are then listed or
traded, as may be the case from time to time.

                  (l) Comply in all material respects with all applicable rules
and regulations of the Commission and make generally available to its security
holders earning statements satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) or such extended period as is permitted under the Securities Act
commencing on the first day of the first fiscal quarter of the Company after the
effective date of the Registration Statement, which statement shall conform to
the requirements of Rule 158.

                  (m) The Company may require each selling Holder to furnish to
the Company information regarding such Holder and the distribution of such
Registrable Securities as is required by law to be disclosed in the Registration
Statement, and the Company may exclude from such registration the Registrable
Securities of any such Holder who unreasonably fails to furnish such information
within a reasonable time after receiving such request.

                  If the Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is not required by the Securities Act or any similar federal statute then in
force) the deletion of the reference to such Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the
time that such reference ceases to be required.

                  Each Holder covenants and agrees that (i) it will not sell any
Registrable Securities under the Registration Statement until it has received
copies of the Prospectus as then amended or supplemented as contemplated in
Section 3(g) and notice from the Company that such Registration Statement and
any post-effective amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply with the prospectus delivery requirements of the Securities Act as
applicable to them in connection with sales of Registrable Securities pursuant
to the Registration Statement.

                  Each Holder agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of
any event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv),
3(c)(v), 3(c)(vi) or 3(n), such Holder will forthwith discontinue disposition of
such Registrable Securities under the Registration Statement until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement contemplated by Section 3(j), or until it is advised in writing (the
"ADVICE") by the Company that the use of the applicable Prospectus may be

                                      -7-
<PAGE>

resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus or Registration Statement.

                  (n) If (i) there is material non-public information regarding
the Company which the Company's Board of Directors (the "BOARD") reasonably
determines not to be in the Company's best interest to disclose and which the
Company is not otherwise required to disclose, or (ii) there is a significant
business opportunity (including, but not limited to, the acquisition or
disposition of assets (other than in the ordinary course of business) or any
merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board reasonably determines not to be in the Company's
best interest to disclose, then the Company may (x) postpone or suspend filing
of a registration statement for a period not to exceed 30 consecutive days or
(y) postpone or suspend effectiveness of a registration statement for a period
not to exceed 20 consecutive days; provided that the Company may not postpone or
suspend effectiveness of a registration statement under this Section 3(n) for
more than 45 days in the aggregate during any 360 day period; PROVIDED, HOWEVER,
that no such postponement or suspension shall be permitted for consecutive 20
day periods arising out of the same set of facts, circumstances or transactions.

         4.       REGISTRATION EXPENSES.
                  ----------------------

                  All fees and expenses incident to the performance of or
compliance with this Agreement by the Company, except as and to the extent
specified in this Section 4, shall be borne by the Company whether or not the
Registration Statement is filed or becomes effective and whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with each
securities exchange or market on which Registrable Securities are required
hereunder to be listed, (B) with respect to filing fees required to be paid to
the National Association of Securities Dealers, Inc. and the NASD Regulation,
Inc. and (C) in compliance with state securities or Blue Sky laws, (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is requested by the holders of a majority of the Registrable
Securities included in the Registration Statement), (iii) messenger, telephone
and delivery expenses, (iv) Securities Act liability insurance, if the Company
so desires such insurance, and (v) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, including, without limitation, the Company's
independent public accountants (including the expenses of any comfort letters or
costs associated with the delivery by independent public accountants of a
comfort letter or comfort letters). In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit, the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder. The Holders shall
be responsible for all of their fees and expenses incident to the performance of
or compliance with this Agreement by the Holders, including but not limited to
their internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of their officers and employees performing legal or
accounting duties), and the costs and expenses of any consultants, agents, or
legal counsel retained by the Holders.

                                      -8-
<PAGE>

         5.       INDEMNIFICATION.
                  ----------------

                  (a) INDEMNIFICATION BY THE COMPANY. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents, brokers (including brokers who
offer and sell Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them, each Person who controls any such Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, agents and employees of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without
limitation, costs of preparation and attorneys' fees) and expenses
(collectively, "LOSSES"), as incurred, arising out of or relating to any untrue
or alleged untrue statement of a material fact contained in the Registration
Statement, any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that (i) such untrue statements or omissions are based
solely upon information regarding such Holder or such other Indemnified Party
furnished in writing to the Company by or on behalf of such Holder expressly for
use therein and (ii) that the foregoing indemnity agreement is subject to the
condition that, insofar as it relates to any untrue statement, allegedly untrue
statement, omission or alleged omission made in any preliminary prospectus but
eliminated or remedied in the final prospectus (filed pursuant to Rule 424 of
the Securities Act), such indemnity agreement shall not inure to the benefit of
any Holder, underwriter, broker or other Person acting on behalf of holders of
the Registrable Securities, from whom the Person asserting any loss, claim,
damage, liability or expense purchased the Registrable Securities which are the
subject thereof, if a copy of such final prospectus had been made available to
such Person and such Holder, underwriter, broker or other Person acting on
behalf of holders of the Registrable Securities and such final prospectus was
not delivered to such Person with or prior to the written confirmation of the
sale of such Registrable Securities to such Person. The Company shall notify the
Holders promptly of the claim, threat or assertion of any Proceeding of which
the Company is aware in connection with the transactions contemplated by this
Agreement.

                  (b) INDEMNIFICATION BY HOLDERS. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),

                                      -9-
<PAGE>

and the directors, officers, agents and employees of such controlling Persons,
to the fullest extent permitted by applicable law, from and against all Losses
(as determined by a court of competent jurisdiction in a final judgment not
subject to appeal or review), as incurred, arising solely out of or based solely
upon any untrue statement of a material fact contained in the Registration
Statement, any Prospectus, or any form of prospectus, or arising solely out of
or based solely upon any omission of a material fact required to be stated
therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information so furnished in writing by such Holder or other Indemnifying Party
to the Company specifically for inclusion in the Registration Statement or such
Prospectus. Notwithstanding anything to the contrary contained herein, the
Holders shall be liable under this Section 5(b) for only that amount as does not
exceed the lesser of (i) the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation and (ii) the aggregate purchase price paid by the
Holder for the Shares pursuant to the Debenture Agreement.

                  (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "INDEMNIFIED PARTY"), such Indemnified Party promptly shall notify the
Person from whom indemnity is sought (the "INDEMNIFYING PARTY) in writing, and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately
and materially adversely prejudiced the Indemnifying Party.

                  An Indemnified Party shall have the right to employ separate
counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; or (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel (which shall be reasonably
acceptable to the Indemnifying Party) that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the expense of
the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld or delayed. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

                                      -10-
<PAGE>

              All fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Business Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).

                  (d) CONTRIBUTION. If a claim for indemnification under Section
5(a) or 5(b) is unavailable to an Indemnified Party because of a failure or
refusal of a governmental authority to enforce such indemnification in
accordance with its terms (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
benefits received by the Indemnifying Party on the one hand and the Indemnified
Party on the other from the offering of the Notes and Warrants. If, but only if,
the allocation provided by the foregoing sentence is not permitted by applicable
law, the allocation of contribution shall be made in such proportion as is
appropriate to reflect not only the relative benefits referred to in the
foregoing sentence but also the relative fault, as applicable, of the
Indemnifying Party and Indemnified Party in connection with the actions,
statements or omissions that resulted in such Losses as well as any other
relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission of a material fact, has been
taken or made by, or relates to information supplied by, such Indemnifying Party
or Indemnified Party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action, statement or
omission. The amount paid or payable by a party as a result of any Losses shall
be deemed to include, subject to the limitations set forth in Section 5(c), any
reasonable attorneys' or other reasonable fees or expenses incurred by such
party in connection with (i) any Proceeding to the extent such party would have
been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms or (ii)
enforcing any rights under this Section 5. In no event shall any selling Holder
be required to contribute an amount under this Section 5(d) in excess of the net
proceeds received by such Holder upon sale of such Holder's Registrable
Securities pursuant to the Registration Statement giving rise to such
contribution obligation.

              The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
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.

                                      -11-
<PAGE>

              The indemnity and contribution agreements contained in this
Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties. Notwithstanding anything to the contrary contained
herein, the Holders shall be liable under this Section 5(d) for only that amount
as does not exceed the net proceeds to such Holder as a result of the sale of
Registrable Securities pursuant to such Registration Statement.

         6.       RULE 144.
                  ---------

              As long as any Holder owns any Registrable Securities, Notes,
Warrants or Additional Warrants, the Company covenants to timely file (or obtain
extensions in respect thereof and file within the applicable grace period) all
reports required to be filed by the Company after the date hereof pursuant to
Section 13(a) or 15(d) of the Exchange Act and to promptly furnish the Holders
with true and complete copies of all such filings. As long as any Holder owns
any Registrable Securities, Notes, Warrants or Additional Warrants, if the
Company is not required to file reports pursuant to Section 13(a) or 15(d) of
the Exchange Act, it will prepare and furnish to the Holders and make publicly
available in accordance with Rule 144(c) promulgated under the Securities Act
annual and quarterly financial statements, together with a discussion and
analysis of such financial statements in form and substance substantially
similar to those that would otherwise be required to be included in reports
required by Section 13(a) or 15(d) of the Exchange Act, as well as any other
information required thereby, in the time period that such filings would have
been required to have been made under the Exchange Act. The Company further
covenants that it will take such further action as any Holder may reasonably
request in writing, all to the extent required from time to time to enable such
Person to sell the Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144
promulgated under the Securities Act, including providing any legal opinions
relating to such sale pursuant to Rule 144.

         7.       MISCELLANEOUS.
                  --------------

                  (a) REMEDIES. In the event of a breach by the Company or by a
Holder, of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall waive the
defense that a remedy at law would be adequate.

                                      -12-
<PAGE>

                  (b) NO INCONSISTENT AGREEMENTS. Neither the Company nor any of
its subsidiaries has, as of the date hereof entered into and currently in
effect, nor shall the Company or any of its subsidiaries, on or after the date
of this Agreement, enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. Without limiting the generality
of the foregoing, without the written consent of the Holders of a majority of
the then outstanding Registrable Securities, the Company shall not grant to any
Person the right to request the Company to register any securities of the
Company, under the Securities Act unless the rights so granted are not in
conflict with the provisions of this Agreement.

                  (c) AMENDMENTS AND WAIVERS. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Holders of a majority of the Registrable Securities outstanding.

                  (d) NOTICES. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earlier of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice prior to 5:00 p.m., California
time, on a Business Day, (ii) the Business Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice later than 5:00 p.m., California time, on
any date and earlier than 11:59 p.m., California time, on such date, (iii) the
Business Day following the date of mailing, if sent by nationally recognized
overnight courier service or (iv) actual receipt by the party to whom such
notice is required to be given. The addresses for such communications shall be:

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

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

                                      -13-
<PAGE>

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

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

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have designated in writing to the other parties hereto
by such notice.

                  (e) SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and permitted
assigns and shall inure to the benefit of each Holder and its successors and
assigns. The Company may not assign this Agreement or any of its rights or
obligations hereunder without the prior written consent of each Holder. Each
Purchaser may assign its rights hereunder in the manner and to the Persons as
permitted under the Debenture Agreement.

                  (f) ASSIGNMENT OF REGISTRATION RIGHTS. The rights of each
Holder hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
assignable by each Holder to any Affiliate of such Holder or any other Holder or
Affiliate of any other Holder of all or a portion of the Registrable Securities
if: (i) the Holder agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment, (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned,
(iii) following such transfer or assignment the further disposition of such
securities by the transferee or assignees is restricted under the Securities Act
and applicable state securities laws, (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this Section, the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions of this Agreement and the assignee makes the representations of
the Holder contained in the Debenture Agreement, and (v) such transfer shall
have been made in accordance with the applicable requirements of the Debenture
Agreement and the Securities Act. In addition, each Holder shall have the right
to assign its rights hereunder to any other Person with the prior written
consent of the Company, which consent shall not be unreasonably withheld. The
rights to assignment shall apply to the Holders (and to subsequent) successors
and assigns.

                                      -14-
<PAGE>

                  (g) COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and, all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

                  (h) GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California,
without giving effect to any of the conflicts of law principles which would
result in the application of the substantive law of another jurisdiction. This
Agreement shall not be interpreted or construed with any presumption against the
party causing this Agreement to be drafted.

                  (i) CUMULATIVE REMEDIES. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

                  (j) SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable in any respect, the remainder of the terms, provisions, covenants
and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto
shall use their reasonable efforts to find and employ an alternative means to
achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared
to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

                  (k) HEADINGS. The headings herein are for convenience only, do
not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

                  (l) SHARES HELD BY THE COMPANY AND ITS AFFILIATES. Whenever
the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than any Holder or transferees or successors or assigns
thereof if such Holder is deemed to be an Affiliate solely by reason of its
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

         IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed by their respective authorized persons as
of the date first indicated above.

                    RECLAMATION CONSULTING AND APPLICATIONS, INC.,

                    By: /s/ Michael Davies
                        ----------------------------------
                    Name: Michael C. Davies
                    Title: Chief Executive Officer

                    PALA INVESTMENTS HOLDINGS LIMITED:

                    By: /s/ Susan Garrod
                        ----------------------------------
                    Name: Susan Garrod
                    Title: Executive Director

                                      -15-

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