Document:

<PAGE>

                                                                     Exhibit 4.3

     This Stock Purchase Warrant (this "Warrant") and any securities acquired
upon the exercise of this Warrant have not been registered under the Securities
Act of 1933, as amended (the "Securities Act"), or the securities laws of any
state.  None of this warrant, such securities or any interest therein may be
sold, transferred, pledged or hypothecated except pursuant to an effective
registration statement under the Securities Act and such registration or
qualification as may be necessary under the securities laws of any jurisdiction
or pursuant to a written opinion of counsel (which counsel and opinion shall be
reasonably satisfactory to the Company) that such registration or qualification
is not required.

                             GRACE DEVELOPMENT INC.

                             STOCK PURCHASE WARRANT

     This certifies that, for good and valuable consideration, Grace Development
Inc., a Colorado corporation (the "Company"), grants to [Purchaser] (the
"Warrantholder"), the right to subscribe for and purchase from the Company
_____________________________ (___________) validly issued, fully paid and
nonassessable shares (the "Warrant Shares") of Common Stock, no par value per
share, of the Company (the "Common Stock"), at the purchase price per share of
$1.00 (the "Exercise Price"), at any time prior to 5:00 p.m., New York, New York
time, on the Expiration Date, all subject to the terms, conditions and
adjustments herein set forth.

     1.   Duration and Exercise of Warrant, Limitation on Exercise, Payment of
          --------------------------------------------------------------------
Taxes.
-----

          1.1. Duration and Exercise of Warrant.  Subject to the terms and
               --------------------------------
conditions set forth herein, this Warrant may be exercised, in whole or in part,
by the Warrantholder by:

               (a)  the surrender of this Warrant to the Company, with a duly
executed Exercise Form specifying the number of Warrant Shares to be purchased,
during normal business hours on any Business Day prior to the Expiration Date;
and

               (b)  the delivery of payment to the Company, for the account of
the Company, by cash, wire transfer, certified or official bank check or any
other means approved by the Company, of the Exercise Price for the number of
Warrant Shares specified in the Exercise Form in lawful money of the United
States of America. In addition to and without limiting the rights of the
Warrantholder under the terms hereof, the Warrantholder shall have the right, in
exercising this Warrant in whole or in part at any time or from time to time in
accordance with its terms, to deliver to the Company, in lieu of a payment by
cash, wire transfer, certified or official bank check or any other means
approved by the Company, written notice that the Warrantholder elects to apply
the Exercise Price against the outstanding principal balance of the Note
executed by the Company payable to the Warrantholder. The credit of the Exercise
Price against the Note shall in all respects be deemed to constitute payment in
full of such Exercise Price.
<PAGE>

     The Company agrees that such Warrant Shares shall be deemed to be issued to
the Warrantholder as the record holder of such Warrant Shares as of the close of
business on the date on which this Warrant shall have been surrendered and
payment made for the Warrant Shares as aforesaid.  Notwithstanding the
foregoing, no such surrender shall be effective to constitute the Person
entitled to receive such shares as the record holder thereof while the transfer
books of the Company for the Common Stock are closed for any purpose (but not
for any period in excess of five Business Days); but any such surrender of this
Warrant for exercise during any period while such books are so closed shall
become effective for exercise immediately upon the reopening of such books, as
if the exercise had been made on the date this Warrant was surrendered and for
the number of shares of Common Stock and at the Exercise Price in effect at the
date of such surrender.

          1.2. Cashless Exercise Right.
               -----------------------

               (a) Subject to Section 1.1(b), at any time or from time to time,
in lieu of the payment of the Exercise Price, the Warrantholder shall have the
right (but not the obligation), to require the Company to convert this Warrant,
in whole or in part, into Common Stock (a "Cashless Exercise Right") as provided
for in this Section 1.2. Upon exercise of the Cashless Exercise Right, the
Company shall deliver to the Warrantholder within five Business Days after
receipt of the Exercise Form by the Company (without payment by the
Warrantholder of any of the Exercise Price) in accordance with Section 1.1 that
number of shares of Common Stock equal to the quotient obtained by dividing (i)
the value of the Warrant at the time the Cashless Exercise Right is exercised
(determined by subtracting, the Aggregate Exercise Price of the Warrant Shares
in effect immediately prior to the exercise of the Cashless Exercise Right from
the aggregate Market Price (as defined below) of the Warrant Shares in effect
immediately prior to the exercise of the Cashless Exercise Right) by (ii) the
Market Price of one share of Common Stock immediately prior to the exercise of
the Cashless Exercise Right.

               (b) The Cashless Exercise Right may be exercised by the
Warrantholder, at any time or from time to time, on any Business Day by
delivering this Warrant, with a duly executed Exercise Form with the conversion
section completed, to the Company, exercising the Cashless Exercise Right and
specifying the total number of shares of Common Stock that, the Warrantholder
will be issued pursuant to such conversion. No fractional shares arising out of
the formula in Section 1.2(a) for determining the number of shares issuable
under the Cashless Exercise Right shall be issued, and the Company shall in lieu
thereof make payment to the Warrantholder of cash in the amount of such fraction
multiplied by the Market Price of one Share of Common Stock on the date of
conversion, provided that in the event that sufficient funds are not legally
available for such cash payment any fractional shares of Common Stock shall be
rounded up to the next whole number. Notwithstanding anything to the contrary in
this Warrant, the Cashless Exercise Right shall become null and void, and of no
further force and effect, upon the registration of this Warrant or the Warrant
Shares pursuant to an effective registration statement under the Securities Act.

          1.3. Warrant Shares Certificate.  A stock certificate or certificates
               --------------------------
for the Warrant Shares specified in the Exercise Form shall be delivered to the
Warrantholder within

                                       2
<PAGE>

five Business Days after receipt of the Exercise Form by the Company and payment
of the purchase price; provided, however, that if a determination by the
Company's Board of Directors (the "Board") is necessary pursuant to Section 1.2,
such delivery shall be made promptly after such determination is made (such
determination shall be made with reasonable promptness but no more frequently
than on a quarterly basis). If this Warrant shall have been exercised only in
part, the Company shall, at the time of delivery of the stock certificate or
certificates, deliver to the Warrantholder a new Warrant evidencing the, rights
to purchase the remaining Warrant Shares, which new Warrant shall in all other
respects be identical with this Warrant.

          1.4. Reservation of Warrant Shares. The Company covenants that it will
               -----------------------------
at all times, keep available such number of authorized shares of its Common
Stock, free from all preemptive rights with respect thereto, which will be
sufficient to permit the exercise of this Warrant for the full number of Warrant
Shares specified herein, upon exercise of this Warrant. The Company further
covenants that such Warrant Shares, when issued pursuant to the exercise of this
Warrant, will be duly and validly issued, fully paid and non-assessable, and
free from all taxes, liens and charges with respect to the issuance thereof.

          1.5. Payment of Taxes.  The issuance of certificates for Warrant
               ----------------
Shares shall be made without charge to the Warrantholder for any stock transfer
or other issuance tax in respect thereto; provided, however, that the
Warrantholder shall be required to pay any and all taxes that may be payable in
respect of any transfer involved in the issuance and delivery of any certificate
in a name other than that of the then Warrantholder as reflected upon the books
of the Company.

     2.   Restrictions on Transfer; Restrictive Legends.
          ---------------------------------------------

          2.1. Restrictions on Transfer.  This Warrant may not be offered, sold,
               ------------------------
transferred, pledged or otherwise disposed of, in whole or in part, to any
Person other than an Affiliate of the Warrantholder without the prior written
consent of the Company, which shall not be unreasonably withheld.

          2.2. Restrictive Legends.  Except as otherwise permitted by this
               -------------------
Section 2, each Warrant (and each Warrant issued in substitution for any
Warrant) shall be stamped or otherwise imprinted with a legend in substantially
the following form:

     This Warrant and any securities acquired upon the exercise of this warrant
     have not been registered under the Securities Act of 1933, as amended (the
     "Securities Act"), or the securities laws of any state. None of this
     warrant, such securities or any interest therein may be sold, transferred,
     pledged or hypothecated except pursuant to an effective registration
     statement under the Securities Act and such registration or qualification
     as may be necessary under the securities laws of any jurisdiction or
     pursuant to a written opinion of counsel (which counsel and opinion shall
     be reasonably satisfactory to the Company) that such registration or
     qualification is not required.

     Except as otherwise permitted by this Section 2, each stock certificate for
Warrant Shares issued upon the exercise of any Warrant and each stock
certificate issued upon the direct or

                                       3
<PAGE>

indirect transfer of any such Warrant Shares shall be stamped or otherwise
imprinted with a legend in substantially the following form:

     The securities represented by this certificate have not been registered
     under the Securities Act of 1933, as amended (the "Securities Act"), or the
     securities laws of any state. The securities may not be sold, transferred,
     pledged or hypothecated except pursuant to an effective registration
     statement under the Securities Act and such registration or qualification
     as may be necessary under the securities laws of any jurisdiction or
     pursuant to a written opinion of counsel (which counsel and opinion shall
     be reasonably satisfactory to the Company) that such registration or
     qualification is not required.

     Notwithstanding the foregoing, the Warrantholder may require the Company to
issue a Warrant or a stock certificate for Warrant Shares, in each case without
a legend, if either (i) such Warrant or such Warrant Shares, as the case may be,
have been registered for resale under the Securities Act, (ii) the Warrantholder
has delivered to the Company an opinion of legal counsel (from a firm reasonably
satisfactory to the Company) which opinion shall be addressed to the Company and
be reasonably satisfactory in form and substance to the Company's counsel, to
the effect that such registration is not required with respect to such Warrant
or such Warrant Shares, as the case may be or (iii) such Warrant or Warrant
Shares may be, sold pursuant to Rule 144 (or any successor provision then in
effect) under the Securities Act.

     3.  Loss or Destruction of Warrant. Subject to the terms and conditions
         ------------------------------
hereof, upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant and, in the case of
loss, theft or destruction, of such bond or indemnification as the Company may
reasonably require, and, in the case of such mutilation, upon surrender and
cancellation of this Warrant the Company will execute and deliver a new Warrant
of like tenor.

     4.  Ownership of Warrant. The Company may deem and treat the person in
         --------------------
whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the Company, until presentation of this Warrant for registration of transfer.

     5.  Antidilution Provisions. During the exercise period or until fully
         -----------------------
exercised, the Exercise Price and the number of Warrant Shares issuable pursuant
to this Warrant shall be subject to adjustment from time to time as provided in
this Section 5. In the event that any adjustment of the Exercise Price as
required herein results in a fraction of a cent, such Exercise Price shall be
rounded up or down to the nearest cent.

         (a)  Adjustment of Exercise Price and Number of Shares upon Issuance of
              ------------------------------------------------------------------
Common Stock.  Except as otherwise provided in Section 5(c) and 5(d) hereof, if
------------
and whenever after the First Closing Date, the Company issues or sells, or in
accordance with Section 5(b) hereof is deemed to have issued or sold, any shares
of Common Stock for no consideration or for a consideration per share less than
the Market Price on the date of issuance (a "Dilutive

                                       4
<PAGE>

Issuance"), then effective immediately upon the Dilutive Issuance, the Exercise
Price will be adjusted in accordance with the following formula:

          E' = (E) (O + P/M) / (CSDO)

          where:

          E'       =     the adjusted Exercise Price;
          E        =     the then current Exercise Price;
          M        =     the then current Market Price; provided, however, that
                         in the case of stock issued in stock for stock
                         acquisitions with unaffiliated third parties, "M" will
                         be deemed to be the lesser of (i) (a) $0.70 per share
                         in the case of issuances after the First Closing and
                         (b) $1.00 per share in the case of issuances on or
                         after the Second Closing to the extent the Second
                         Closing occurs (as such per share amounts are adjusted
                         for stock splits, stock dividends and other
                         recapitalizations after the date of this Agreement);
                         and (ii) the then current Market Price;
          O        =     the number of shares of Common Stock outstanding
                         immediately prior to the Dilutive Issuance;
          P        =     the aggregate consideration, calculated as set forth in
                         Section 5(b) hereof, received by the Company upon such
                         Dilutive Issuance; and
          CSDO     =     the total number of shares of Common Stock Deemed
                         Outstanding (as herein defined) immediately after the
                         Dilutive Issuance.

          (b)  Effect on Exercise Price of Certain Events.  For purposes of
               ------------------------------------------
determining the adjusted Exercise Price under Section 5(a) hereof, the following
will be applicable:

               (i) Issuance of Rights or Options.  If the Company in any manner
                   -----------------------------
issues or grants any warrants, rights or options, whether or not immediately
exercisable, to subscribe for or to purchase Common Stock or other securities
exercisable, convertible into or exchangeable for Common Stock ("Convertible
Securities") (such warrants, rights and options to purchase Common Stock or
Convertible Securities are hereinafter referred to as "Options"), and the price
per share, for which Common Stock is issuable upon the exercise of such Options
is less than the Market Price on the date of issuance ("Below Market Options"),
then the maximum total number of shares of Common Stock issuable upon the
exercise of all such Below Market Options (assuming full exercise, conversion or
exchange of Convertible Securities, if applicable) will, as of the date of the
issuance or grant of such Below Market Options, be deemed to be outstanding and
to have been issued and sold by the Company for such price per share.  For
purposes of the preceding sentence, the price per share for which Common Stock
is issuable upon the exercise of such Below Market Options is determined by
dividing (i) the total amount, if any, received or receivable by the Company as
consideration for the issuance or granting of

                                       5
<PAGE>

such Below Market Options, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the exercise of all such
Below Market Options, plus, in the case of Convertible Securities issuable upon
the exercise of such Below Market Options, the minimum aggregate amount of
additional consideration payable upon the exercise, conversion or exchange
thereof at the time such Convertible Securities first become exercisable,
convertible or exchangeable, by (ii) the maximum total number of shares of
Common Stock issuable upon the exercise of all such Below Market Options
(assuming full conversion of Convertible Securities, if applicable). No further
adjustment to the Exercise Price will be made upon the actual issuance of such
Common Stock upon the exercise of such Below Market Options or upon the
exercise, conversion or exchange of Convertible Securities issuable upon
exercise of such Below Market Options.

               (ii)  Issuance of Convertible Securities.
                     ----------------------------------

                     (A) If the Company in any manner issues or sells any
Convertible Securities, whether or not immediately convertible (other than where
the same are issuable upon the exercise of Options) and the price per share for
which Common Stock is issuable upon such exercise, conversion or exchange (as
determined pursuant to Section 5(b)(ii)(B) if applicable) is less than the
Market Price on the date of issuance, then the maximum total number of shares of
Common Stock issuable upon the exercise, conversion or exchange of all such
Convertible Securities will, as of the date of the issuance of such Convertible
Securities, be deemed to be outstanding and to have been issued and sold by the
Company for such price per share. For the purposes of the preceding sentence,
the price per share for which Common Stock is issuable upon such exercise,
conversion or exchange is determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the issuance or sale
of all such Convertible Securities, plus the minimum aggregate amount of
additional consideration, if any, payable to the Company upon the exercise,
conversion or exchange thereof at the time such Convertible Securities first
become exercisable, convertible or exchangeable, by (ii) the maximum total
number of shares of Common Stock issuable upon the exercise, conversion or
exchange of all such Convertible Securities. No further adjustment to the
Exercise Price will be made upon the actual issuances of such Common Stock upon
exercise, conversion or exchange of such Convertible Securities.

                     (B) If the Company in any manner issues or sells any
Convertible Securities with a fluctuating conversion or exercise price or
exchange ratio, then the price per share for which Common Stock is issuable upon
such exercise, conversion or exchange for purposes of the calculation
contemplated by Section 5(b)(ii)(A) shall be deemed to be the lowest price per
share which would be applicable assuming that all holding period and other
conditions to any discounts contained in such Convertible Security have been
satisfied.

               (iii) Change in Option Price or Conversion Rate. If there is a
change at any time after the First Closing Date in (i) the amount of additional
consideration payable to the Company upon the exercise of any Options; (ii) the
amount of additional consideration, if any, payable to the Company upon the
exercise, conversion or exchange or any Convertible Securities; or (iii) the
rate at which any Convertible Securities are convertible into or

                                       6
<PAGE>

exchangeable for Common Stock (other than under or by reason of provisions
designed to protect against dilution), the Exercise Price in effect at the time
of such change will be readjusted to the Exercise Price, which would have been
in effect at such time had such Options or Convertible Securities still
outstanding provided for such changed additional consideration or changed
conversion rate, as the case may be, at the time initially granted, issued or
sold.

               (iv)  Treatment of Expired Options and Unexercised Convertible
                     --------------------------------------------------------
Securities.  If, in any case, the total number of shares of Common Stock
----------
issuable upon exercise of any Options or upon exercise, conversion or exchange
of any Convertible Securities is not, in fact, issued and the rights to exercise
such option or to exercise, convert or exchange such Convertible Securities
shall have expired or terminated, the Exercise Price then in effect will be
readjusted to the Exercise Price which would have been in effect at the time of
such expiration or termination had such Options or Convertible Securities, to
the extent outstanding immediately prior to such expiration or termination
(other than in respect of the actual number of shares of Common Stock issued
upon exercise or conversion thereof), never been issued.

               (v)   Calculation of Consideration Received. If any Common Stock,
                     -------------------------------------
Options or Convertible Securities are issued, granted or sold for cash, the
consideration received therefor for purposes of this Warrant will be the amount
received by the Company therefor, before deduction of reasonable commissions,
underwriting discounts or allowances or other reasonable expenses paid or
incurred by the Company in connection with such issuance, grant or sale. In case
any Common Stock, Options or Convertible Securities are issued or sold for a
consideration part or all of which shall be other than cash, the amount of the
consideration other than cash received by the Company will be the fair market
value of such consideration except where such consideration consists of freely-
tradeable securities, in which case the amount of consideration received by the
Company will be the Market Price thereof as of the date of receipt. In case any
Common Stock, Options or Convertible Securities are issued in connection with my
merger or consolidation in which the Company is the Surviving corporation, the
amount of consideration therefor will be deemed to be the fair market value of
such portion of the net assets and business of the non-surviving corporation as
is attributable to such Common Stock, Options or Convertible Securities, as the
case may be. The fair market value of any consideration other than cash or
securities will be determined in the good faith reasonable business judgment of
the Board of Directors.

               (vi)  Exceptions to Adjustment of Exercise Price.  No adjustment
                     ------------------------------------------
to the Exercise Price will be made (i) upon the exercise of any warrants,
options or convertible securities issued and outstanding on the date hereof in
accordance with the terms of such securities as of such date; (ii) upon the
issuance of the Sale Shares or the Notes (each as defined in the Securities
Purchase Agreement) or the Warrant in accordance with terms of the Securities
Purchase Agreement; or (iii) upon the exercise of the Warrant or conversion of
the Note.

          (c)  Subdivision or Combination of Common Stock.  If the Company, at
               ------------------------------------------
any time after the First Closing Date, subdivides (by any stock split, stock
dividend, recapitalization, reorganization, reclassification or otherwise) its
shares of Common Stock into a greater number of shares, then, after the date of
record for effecting such subdivision, the Exercise Price in effect

                                       7
<PAGE>

immediately prior to such subdivision will be proportionately reduced. If the
Company, at any time after the initial issuance of this Warrant, combines (by
reverse stock split, recapitalization, reorganization, reclassification or
otherwise) its shares of Common Stock into a smaller number of shares, then,
after the date of record for effecting such combination, the Exercise Price in
effect immediately prior to such combination will be proportionately increased.

          (d) Major Transaction.  If, after the First Closing Date, the Company
              -----------------
shall consolidate or merge with any other corporation or entity (other than a
merger in which the Company is the surviving or continuing entity) or there
shall occur any share exchange pursuant to which all of the outstanding shares
of Common Stock are converted into other securities or property or any
reclassification or change of the outstanding shares of Common Stock (each of
the foregoing being a "Major Transaction"), then each holder of a Warrant may
thereafter, at its option, be entitled, at its election, either to (i) in the
event that the Common Stock remains outstanding or holders of Common Stock
receive any common stock or substantially similar equity interest in each of the
foregoing cases which is publicly traded, retain its Warrant and such Warrant
shall continue to apply to such Common Stock or shall apply, as nearly as
practicable, to such other common stock or equity interest, as the case may be,
or (ii) regardless of whether clause (i) applies, receive consideration, in
exchange for such Warrant, equal to the number of shares of stock or securities
or property of the Company, or of the entity resulting from such Major
Transaction (the "Major Transaction Consideration"), to which a holder of the
number of shares of Common Stock delivered upon the exercise of such Warrant
would have been entitled upon such Major Transaction had such holder exercised
the Warrant (without regard to any limitations on conversion or elsewhere
contained) on the trading date immediately preceding the consummation of such
Major Transaction and had such Common Stock been issued and outstanding and had
such Warrantholder been the holder of record of such Common Stock at the time of
the consummation of such Major Transaction; and the Company shall make lawful
provision for the foregoing as a part of such Major Transaction and shall cause
the issuer of any security in such transaction which constitutes Registrable
Securities under that certain Registration Rights Agreement dated as of the date
hereof among the Company and the signatories thereto (the "Registration Rights
Agreement") to assume all of the Company's obligations under the Registration
Rights Agreement.  No later than five Business Days prior to the consummation of
the Major Transaction, but not prior to the public announcement of such Major
Transaction, the Company shall deliver written notice ("Notice of Major
Transaction") to each holder of a Warrant of such Notice of Major Transaction.
Such Notice of Major Transaction shall indicate the amount and type of the Major
Transaction consideration which such holder of a Warrant would receive under
this Section.

          (e) Distribution of Assets.  In case the Company shall declare or make
              ----------------------
any distribution of its assets (or rights to acquire its assets) to holders of
Common Stock as a partial liquidating dividend, by way of return of capital or
otherwise (including any dividend or distribution to the Company's shareholders
of cash or shares (or rights to acquire shares) of capital stock of a
subsidiary) (a "Distribution"), at any time after the First Closing Date, then
the Warrantholder shall be entitled upon exercise of this Warrant for the
purchase of any or all of the shares of Common Stock subject hereto, to receive
the amount of such assets (or rights) which would have been payable to the
Warrantholder had such Warrantholder been the holder of such

                                       8
<PAGE>

shares of Common Stock on the record date for the determination of shareholders
entitled to such Distribution.

          (f) Notices of Adjustment.  Upon the occurrence of any event which
              ---------------------
requires any adjustment of the Exercise Price or in the number or kind of shares
purchasable upon exercise of the Warrant, then, and in each such case, the
Company shall give notice thereof to the Warrantholder, which notice shall state
the Exercise Price resulting from such adjustment and the increase or decrease
in the number of Warrant Shares (or other securities or property) purchasable,
as applicable, at such price upon exercise, setting forth in reasonable detail
the method of calculation and the facts upon which such calculation is based.
Such calculation shall be certified by the chief financial officer of the
Company.

          (g) Minimum Adjustment of Exercise Price.  No adjustment of the
              ------------------------------------
Exercise Price shall be made in an amount of less than 1% of the Exercise Price
in effect at the time such adjustment is otherwise required to be made, but any
such lesser adjustment shall be carried forward and shall be made at the time
and together with the next subsequent adjustment which, together with any
adjustments so carried forward, shall amount to not less than 1% of such
Exercise Price.

          (h) No Fractional Shares.  No fractional shares of Common Stock are to
              --------------------
be issued upon the exercise of this Warrant, but the Company shall pay a cash
adjustment in respect of any fractional share which would otherwise be issuable
in an amount equal to the same fraction of the Market Price of a share of Common
Stock; provided that in the event that sufficient funds are not legally
available for the payment of such cash adjustment any fractional shares of
Common Stock shall be rounded up to the next whole number.

          (i) Other Notices.  In case at any time:
              -------------

              (i)   the Company shall declare any dividend upon the Common Stock
payable in shares of stock of any class or make any other distribution to the
holders of the Common Stock;

              (ii)  the Company shall offer for subscription pro rata to the
holders of the Common Stock any additional shares of stock of any class or other
rights;

              (iii) there shall be any capital reorganization of the Company, or
reclassification of the Common Stock or consolidation or merger of the Company
with or into, or sale of all or substantially all of its assets to, another
corporation or entity; or

              (iv)  there shall be a voluntary or involuntary dissolution
liquidation or winding-up of the Company;

then, in each such case, the Company shall give to the Warrantholder (A) notice
of the date on which the books of the Company shall close or a record shall be
taken for determining the holders of Common Stock entitled to receive any such
dividend, distribution, or subscription rights or for determining the holders of
Common Stock entitled to vote in respect of any such

                                       9
<PAGE>

reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation, or winding-up and (B) in the case of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up, notice of the date (or, if not then known, a reasonable
approximation thereof by the Company) when the same shall take place. Such
notice shall also specify the date on which the holders of Common Stock shall be
entitled to receive such dividend, distribution, or subscription rights or to
exchange their Common Stock for stock or other securities or property
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation, or winding-up, as the case may be. Such notice
shall be given at least 30 days prior to the record date or the date on which
the Company's books are closed in respect thereto, but in no event earlier than
public announcement of such proposed transaction or event. Failure to give any
such notice or any defect therein shall not affect the validity of the
proceedings referred to in clauses (i), (ii), (iii) and (iv) above.

     6.   Amendments.  Any provision of this Warrant may be amended and the
          ----------
observance thereof waived only with the written consent of the Company and the
Warrantholder.

     7.   Definitions.  As used herein, unless the context otherwise requires,
          -----------
the following terms have the following respective meanings:

     "Affiliate" means, with respect to any Person, any other Person who
      ---------
controls, is controlled by or is under common control with such Person.

     "Aggregate Exercise Price" means the dollar amount equal to (i) the total
      ------------------------
number of Warrant Shares set forth in the notice of exercise delivered pursuant
to Section 1.2 multiplied by (ii) the Exercise Price in effect immediately prior
to such exercise.

     "Below Market Options" has the meaning specified in Section 5(b)(i).
      --------------------

     "Board" has the meaning specified in Section 1.3.
      -----

     "Business Day" means any day other than a Saturday, Sunday or a day on
      ------------
which national banks are authorized by law to close in the State of New York.

     "Cashless Exercise Right" has the meaning specified in Section 1.2(a).
      -----------------------

     "Common Stock" has the meaning specified on the cover of this Warrant.
      ------------

     "Common Stock Deemed Outstanding" means the number of shares of Common
      -------------------------------
Stock actually outstanding (not including shares of Common Stock held in the
treasury of the Company), plus (x) in case of any adjustment required by Section
5(a) resulting from the issuance of any Options, the maximum total number of
shares of Common Stock issuable upon the exercise of the Options for which the
adjustment is required (including any Common Stock issuable upon the conversion
of Convertible Securities issuable upon the exercise of such Options), and (y)
in the case of any adjustment required by Section 5(a) resulting from the
issuance of any Convertible Securities, the maximum total number of shares of
Common Stock

                                       10
<PAGE>

issuable upon the exercise, conversion or exchange of the Convertible Securities
for which the adjustment is required, as of the date of issuance of such
Convertible Securities, if any.

     "Company" has the meaning specified on the cover of this Warrant.
      -------

     "Convertible Securities" has the meaning specified in Section 5(b)(i).
      ----------------------

     "Dilutive Issuance" has the meaning specified in Section 5(a).
      -----------------

     "Distribution" has the meaning specified in Section 5(e).
      ------------

     "Exercise Form" means an Exercise Form in the form annexed hereto as
      -------------
Exhibit A.

     "Exercise Price" has the meaning specified on the cover of this Warrant.
      --------------

     "Expiration Date" means the fifth anniversary of the date of issuance of
      ---------------
this Warrant.

     "First Closing Date" has the meaning specified in the Securities Purchase
      ------------------
Agreement.

     "Major Transaction" has the meaning specified in Section 5(d).
      -----------------

     "Major Transaction Consideration" has the meaning specified in Section
      -------------------------------
5(d).

     "Market Price" means, as of any date, (i) the average of the Closing Bid
      ------------
Prices for the shares of Common Stock as reported to The Nasdaq National Market
for the 15 trading days immediately preceding such date, or (ii) if The Nasdaq
National Market is not the principal trading market for the Common Stock, the
average of the last reported bid prices on the principal trading market for the
Common Stock, during the same period, or, if there is no bid price for such
period, the last reported sales price for such period, or (iii) if market value
cannot be calculated as of such date on any of the foregoing bases, the Market
Price shall be the average fair market value as reasonably determined by an
investment banking firm selected by the Company and reasonably acceptable to the
holders of a majority in interest of the Warrant, with the costs of the
appraisal to be borne by the Company.  The manner of determining the Market
Price of the Common Stock set forth in the foregoing definition shall apply with
respect to any other security in respect of which a determination as to market
value must be made hereunder.

     "Notice of Major Transaction" has the meaning specified in Section 5(d).
      ---------------------------

     "Options" has the meaning specified in Section 5(b)(i).
      -------

     "Person" means any individual, firm, corporation, partnership, limited
      ------
liability company, trust, incorporated or unincorporated association, joint
venture, joint stock company, or other entity of any kind, and shall include any
successor (by merger or otherwise) of such entity.

     "Registration Rights Agreement" has the meaning specified in Section 5(d).
      -----------------------------

                                       11
<PAGE>

     "Securities Act" has the meaning specified on the cover of this Warrant, or
      --------------
any similar Federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.  Reference to a
particular section of the Securities Act, shall include a reference to the
comparable section, if any, of any such similar Federal statute.

     "Securities Purchase Agreement" means the Securities Purchase Agreement
      -----------------------------
dated April 14, 2000 among the Company and certain purchasers named therein.

     "Subsidiary" means, as to any Person, a corporation, partnership, limited
      ----------
liability company or other entity of which 50% or more of the voting power of
the outstanding voting equity securities or 50% or more of the economic equity
interest is held, directly or indirectly, by such Person.

     "Warrantholder" has the meaning specified on the cover of this Warrant.
      -------------

     "Warrant Shares" has the meaning specified on the cover of this Warrant.
      --------------

     8.   Miscellaneous.
          -------------

          8.1.      Section and Other Headings.  The section and other headings
                    --------------------------
contained in this Warrant are for reference purposes only and shall not be
deemed to be a part of this Warrant or to affect the meaning or interpretation
of this Warrant.

          8.2.      Notices. All notices, demands and other communications
                    -------
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier service, overnight mail or personal delivery:

               (a)  if to the Warrantholder:

                    [Name of Warrantholder]
                    420 Lexington Avenue
                    Suite 1740
                    New York, New York 10170
                    Telecopy:  (212) 973-9219
                    Attention: Jeff Keswin and David Einhorn

               (b)  if to the Company:

                    Grace Development Inc.
                    1690 Chantilly Drive
                    Atlanta, Georgia 30324-3035
                    Telecopy:  (678) 222-3036
                    Attention: President

                                       12
<PAGE>

     All such notices and communications shall be deemed to have been duly given
when delivered by hand, if personally delivered, when delivered by courier or
overnight mail, if delivered by commercial courier service or overnight mail;
five Business Days after being deposited in the mail, postage prepaid, if
mailed; and return receipt is mechanically acknowledged, if telecopied.  Any
party may by notice given in accordance with this Section 9.2 designate another
address or Person for receipt of notices hereunder.

          8.3. Severability.  Any term or provision of this Warrant which is
               ------------
invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the terms and provisions of this Warrant or
affecting the validity or enforceability of any of the terms or provisions of
this Warrant in any other jurisdiction.

          8.4. GOVERNING LAW. THIS WARRANT AND THE VALIDITY AND ENFORCEABILITY
               -------------
HEREOF SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICT OF LAWS RULES OR
CHOICE OF LAWS RULES THEREOF.

          8.5. No Rights or Liabilities as Stockholder.  Nothing contained in
               ---------------------------------------
this Warrant shall be determined as conferring upon the Warrantholder any rights
as a stockholder of the Company or as imposing any liabilities on the
Warrantholder to purchase any securities whether such liabilities are asserted
by the Company or by creditors or stockholders of the Company or otherwise.

                            [Signature Page Follows]

                                       13
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer.

                              GRACE DEVELOPMENT INC.

                              By: _____________________________
                                  Name:
                                  Title:

Dated: April ____, 2000

                                       14
<PAGE>

                                 EXERCISE FORM
                                 -------------

     (To be executed upon exercise of this Warrant)

          The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant, to purchase _________________ of the Warrant Shares
and [herewith tenders payment for such Warrant Shares to the order of Grace
Development Inc. [hereby elects to apply the Exercise Price (as defined in the
Warrant) against the outstanding principal balance of the Note executed by Grace
Development Inc. payable to the undersigned] in the amount of $__________]
[hereby exercises its Cashless Exercise Right] in accordance with the terms of
this Warrant.  The undersigned requests that a certificate for [such Warrant
Shares] [that the number of Warrant Shares to which the undersigned is entitled
as calculated pursuant to Section 1.2 of the Warrant] be registered in the name
of the undersigned and that such certificates be delivered to the undersigned's
address below.

          The undersigned represents that it is acquiring such Warrant Shares
for its own account for investment and not with a view to or for sale in
connection with any distribution thereof (subject, however, to any requirement
of law that the disposition thereof shall at all times be within its control).

Dated:  ___________________
                                                ________________________________
                                                Signature

                                                ________________________________
                                                (Print Name)

                                                ________________________________
                                                (Street Address)

                                                ________________________________
                                                (City) (State) (Zip Code)

Signed in the presence of:

____________________________________
Name:

                                       15<PAGE>

                                                                     Exhibit 4.4

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

          REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated as of April 14,
                                              ---------
2000 by and among Grace Development Inc., a Colorado corporation (the
"Company"), and the purchasers named on the signature pages hereto (the
 -------
"Purchasers").
 ----------

                             PRELIMINARY STATEMENT
                             ---------------------

          Pursuant to the Securities Purchase Agreement (as defined below), the
Purchasers have agreed to purchase the Notes, the Sale Shares and the Warrants
(as each is defined in the Securities Purchase Agreement) on the condition,
among others, that the Company grant the registration rights set forth in this
Agreement.

          ACCORDINGLY, to induce the Purchasers to purchase the Notes, the Sale
Shares and the Warrants and in consideration of the mutual representations and
agreements set forth in this Agreement, the Company and the Purchasers,
intending to be legally bound, now agree as follows:

                            STATEMENT OF AGREEMENT
                            ----------------------

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

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

          "Affiliate" means any entity controlling, controlled by or under
           ---------
common control with a designated Person. For the purposes of this definition,
"control" shall have the meaning specified as of the date of this Agreement for
that word in Rule 405 promulgated by the Securities and Exchange Commission (the
"SEC") under the Securities Act.

          "Equity Security" shall mean any stock or similar security, including
           ---------------
without limitation securities containing equity features and securities
containing profit participation features, or any security convertible or
exchangeable, with or without consideration, into or for any stock or similar
security, or any security carrying any warrant or right to subscribe to or
purchase any stock or similar security, or any such warrant or right.

          "Registrable Securities" shall mean (i) the Sale Shares, (ii) the
           ----------------------
Common Stock issuable upon conversion of the Notes, (iii) the Common Stock
issuable upon exercise of the Warrants, and (iv) any Common Stock issued with
respect to the Common Stock described in (i), (ii) or (iii) above by way of a
stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization or in connection
with any anti-dilution provisions relating to the Notes or the Warrants, until
the earliest to occur of (a) the date on which such security has been
effectively registered under the Securities Act and disposed of in accordance
with a registration statement and (b) the date on which all of the Registrable
Securities may be sold pursuant to Rule 144 (without any volume limitations
thereunder) or may
<PAGE>

be sold without compliance with such rule. The Holder hereby acknowledges and
agrees that the Notes and the Warrants shall not be deemed to be Registrable
Securities.

          "Rule 144" means Rule 144 promulgated by the SEC under the Exchange
           --------
Act, as such rule may be amended from time to time, or any successor rule
thereto.

          "Securities Purchase Agreement" shall mean the Securities Purchase
           -----------------------------
Agreement dated as of April 14, 2000 among the Company and the Purchasers.

          1.2  Incorporated Definitions. Capitalized terms used in this
               ------------------------
Agreement and not otherwise defined herein shall have the meanings set forth in
the Securities Purchase Agreement.

          SECTION 2.  REGISTRATION.
                      ------------

          2.1  Mandatory Registration. Within 30 days following the date on
               ----------------------
which the Company becomes eligible to use Form S-3 (or any similar successor
form that permits incorporation by reference of filings made by the Company
under the Exchange Act, the Company shall file with the SEC a registration
statement with respect to the offering and sale or other disposition of all of
the Registrable Securities. The Company agrees to use its reasonable best
efforts to cause such registration statement to become effective as soon as
practicable following its filing with the SEC.  The Company shall file such
additional registration statements on Form S-3 (or any similar successor form)
as the Holders of Registrable Securities may reasonably request to effect the
registration of Registrable Securities.

          2.2  Piggyback Registration.
               ----------------------

               (a)  Except as set forth in Section 2.2 (b), as, if and when the
          Company proposes to register any Common Stock under the Securities Act
          for sale to the public, whether for its own account or for the account
          of other security holders or both on a form that would also permit the
          registration of the Registrable Securities (other than registrations
          on Form S-8, or any successor form, or Form S-4, or any successor
          form) (an "Eligible Registration), each such time it will give written
          notice to the holders of Registrable Securities (the "Holders") of its
          intention so to do. Upon the written request of a Holder received by
          the Company within 20 days after the giving of any such notice by the
          Company, to register such number of shares of Registrable Securities
          held by such Holder specified in such written request, the Company
          will cause the Registrable Securities as to which registration shall
          have been so requested to be included in the securities to be covered
          by the registration statement proposed to be filed by the Company with
          respect to such Eligible Registration, all to the extent requisite to
          permit the sale or other disposition by such Holder (in accordance
          with its written request) of such Registrable Securities so
          registered. In the event that any Eligible Registration pursuant to
          this Section 2.2 shall be, in whole or in part an underwritten
          offering of Common Stock (an "Underwritten Offering"), the number of
                                        ---------------------
          shares of Registrable Securities to be included in such an
          underwriting may be reduced if and to the extent that the managing
          underwriter shall be of the opinion that such inclusion would
          materially adversely affect the marketing of the securities to be sold
          by the Company therein. In the

                                       2
<PAGE>

          event such a reduction is necessary, the reduction shall be borne
          first by holders of securities that are not Registrable Securities
          pursuant to this Agreement, and if a further reduction is necessary in
          the judgment of the managing underwriter, then holders proposing to
          sell Registrable Securities in the Underwritten Offering shall bear
          the reduction on a pro-rata basis, based on the aggregate number of
          shares of Registrable Securities that each holder proposed to offer
          for sale in the Underwritten Offering. Notwithstanding the foregoing
          provisions, the Company may for any reason and without the consent of
          the Holders in good faith withdraw any registration statement referred
          to in this Section 2.2 without thereby incurring any liability to the
          Holders.

               (b)  Notwithstanding the foregoing, in connection with the first
          underwritten Offering for the account of the Company after the date of
          this Agreement, the Company will not have any obligation to register
          in excess of 50% of the Registrable Securities as long as the price
          per share offered in the Offering is equal to or greater than $3.00
          per share in the event of Offerings on or before December 31, 2000 and
          $5.00 per share thereafter (as such per share amounts are
          appropriately adjusted for stock splits, stock dividends and other
          recapitalizations after the date of this Agreement).

          2.3  Method of Distribution. The Purchasers shall determine the method
               ----------------------
of distribution of the Registrable Securities registered pursuant to Section
2.1.

          2.4  Registration Statement Form. Registrations pursuant to Section
               ---------------------------
2.1 shall be on such appropriate registration form of the SEC (i) as shall be
selected by the Company and as shall be reasonably acceptable to the Purchasers,
and (ii) as shall permit the disposition of such Registrable Securities in
accordance with the method or methods of disposition selected pursuant to
Section 2.3 hereof.

          2.5  Expenses. Except as otherwise provided in this Section 2.6, all
               --------
expenses incurred in connection with the effective registration pursuant to this
Section 2.1 and each registration pursuant to Section 2.2 hereof (excluding in
each case underwriting discounts and commissions applicable to Registrable
Securities), including, without limitation, in each case, all registration,
filing and NASD fees; all fees and expenses of complying with securities or blue
sky laws; all word processing, duplicating and printing expenses, messenger,
delivery and shipping expenses; fees and disbursements of the accountants and
counsel for the Company including the expenses of any special audits or "cold
comfort" letters or opinions required by or incident to such registrations; fees
and disbursements of one firm of counsel selected by the Holders, and any fees
and disbursements of underwriters customarily paid by issuers or sellers of
securities, but excluding underwriting discounts and commissions, if any, shall
be borne by the Company. In all cases, the Purchasers shall pay the underwriting
discounts and commissions applicable to the securities sold by the Purchasers.

          2.6  Effective Registration Statement.  Registrations pursuant to this
               --------------------------------
Section 2 shall not be deemed to have been effected (i) unless a registration
statement with respect thereto has become effective (unless a substantial cause
of the failure of such registration statement to become effective shall be
attributable to the Purchasers), (ii) if after it has become effective, such

                                       3
<PAGE>

registration is interfered with by any stop order, injunction or other order or
requirement of the SEC or other governmental agency or court for any reason,
resulting in a failure to consummate the offering of Registrable Securities
offered thereby, (iii) if after a registration statement with respect thereto
has become effective, the offering of Registrable Securities offered thereby is
not consummated due to factors beyond the control of the Purchasers, other than
the fact that the underwriters have advised the Purchasers that the Registrable
Securities cannot be sold at a net price equal to or above the net price
anticipated at the time of filing of the preliminary prospectus, or (iv) if the
conditions to closing specified in the Securities Purchase Agreement or
underwriting agreement entered into in connection with such registration are not
satisfied (unless a substantial cause of such conditions to closing not being
satisfied shall be attributable to the Purchasers).

          2.7  Selection of Underwriters. If a registration pursuant to Section
               -------------------------
2.2 hereof involves an underwritten offering, the underwriter or underwriters
thereof shall be selected by the Company.

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

          3.1  Procedures. The Company will, subject to the limitations provided
               ----------
herein, as expeditiously as possible:

               (a)  prepare and file with the SEC the requisite registration
          statement to effect such registration, and thereafter, use reasonable
          efforts to cause such registration statement to become effective;
          provided that before filing a registration statement or prospectus or
          any amendments or supplements thereto, including documents
          incorporated by reference, the Company will furnish to counsel to the
          holders of the Registrable Securities covered by such registration
          statement and the managing underwriter or underwriters, if any, draft
          copies of all such documents proposed to be filed (other than
          exhibits, unless so requested) a reasonable time prior thereto, which
          documents will be subject to the reasonable review of such counsel and
          such holders and underwriters, and will notify each holder of the
          Registrable Securities of any stop order issued or threatened by the
          SEC in connection therewith and take all reasonable actions required
          to prevent the entry of such stop order or to remove it if entered;

               (b)  prepare and file with the SEC such amendments and
          supplements to such registration statement and the prospectus used in
          connection therewith as may be necessary to keep such registration
          statement effective and to comply with the provisions of the
          Securities Act with respect to the disposition of all securities
          covered by such registration statement until such time as all of such
          securities have been disposed of in accordance with the intended
          methods of disposition by the seller or sellers thereof set forth in
          such registration statement; provided, however, that the Company shall
          not in any event be required to keep (i) the registration statement
          filed pursuant to Section 2.1 effective for a period of more than two
          years after such registration statement becomes effective and (ii) a
          registration statement filed pursuant to Section 2.2 effective for a
          period of more than nine months after such registration statement
          becomes effective; and

                                       4
<PAGE>

          provided further that the Company may, at any time, delay the filing
          or suspend the effectiveness of any registration under this Agreement,
          or without suspending such effectiveness, instruct the Purchasers not
          to sell any Registrable Securities included in any such registration,
          (i) if the Company shall have determined upon the advice of counsel
          that the Company would be required to disclose any actions taken or
          proposed to be taken by the Company in good faith and for valid
          business reasons, including without limitation, the acquisition or
          divestiture of assets, which disclosure would have a material adverse
          effect on the Company or on such actions, or (ii) if required by law,
          to update the prospectus relating to any such registration to include
          updated financial statements (a "Suspension Period") by providing the
                                           -----------------
          Purchasers with written notice of such Suspension Period and the
          reasons therefor; provided, however, that the Company will not be
                            --------  -------
          required to disclose such reasons with particularity if an authorized
          executive officer of the Company certifies that the Company believes
          it is required by law to delay the filing or suspend the effectiveness
          of any such registration. In addition, the Company shall not be
          required to keep any registration effective, or may without suspending
          such effectiveness, instruct the Purchasers if it has Registrable
          Securities included in such registration not to sell such securities,
          during any period which the Company is instructed, directed, ordered
          or otherwise requested by any governmental agency or self-regulatory
          organization to stop or suspend such trading or sales ("Supplemental
                                                                  ------------
          Extension Period"). In the event of a Suspension Period or
          ----------------
          Supplemental Extension Period, the period during which any
          registration under this Agreement is to remain effective pursuant to
          this Section 3.1(b) shall be tolled until the end of any such
          Suspension Period or Supplemental Extension Period. The Company will
          use reasonable efforts to restrict any Suspension Period or
          Supplemental Extension Period to less than 30 days;

               (c)  furnish to the Purchasers such number of conformed copies of
          such registration statement and of each such amendment and supplement
          thereto (in each case including all exhibits), such number of copies
          of the prospectus contained in such registration statement (including
          each preliminary prospectus and any summary prospectus) and any other
          prospectus filed under Rule 424 under the Securities Act, and such
          other documents, as the Purchasers may reasonably request;

               (d)  use its reasonable efforts to register or qualify all
          Registrable Securities and other securities covered by such
          registration statement under such other securities or blue sky laws of
          such jurisdictions as each seller thereof shall reasonably request and
          to keep such registration or qualification in effect for so long as
          such registration statement remains in effect, and take any other
          action which may be reasonably necessary or advisable to enable such
          seller to consummate the disposition in such jurisdictions of the
          securities owned by such seller, except that the Company shall not for
          any such purpose be required to qualify generally to do business as a
          foreign corporation in any jurisdiction wherein it would not but for
          the requirements of this Section 3.1(d) be obligated to be so
          qualified or to consent to general service of process in any such
          jurisdiction.

                                       5
<PAGE>

               (e)  use its reasonable efforts to cause all Registrable
          Securities covered by such registration statement to be registered
          with or approved by such other United States Federal or state
          governmental agencies or authorities as may be necessary to enable the
          Purchasers to consummate the disposition of such Registrable
          Securities;

               (f)  notify in writing the Purchasers, if Registrable Securities
          are covered by such registration statement, at any time when a
          prospectus relating thereto is required to be delivered under the
          Securities Act, upon discovery that, or upon 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 any material fact
          required to be stated therein or necessary to make the statements
          therein not misleading in the light of the circumstances under which
          they were made, and at the request of the Purchasers prepare and
          furnish to the Purchasers a reasonable number of copies of a
          supplement to or an amendment of such prospectus as may be necessary
          so that, as thereafter delivered to the purchasers of such 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 under which they were made.

               (g)  otherwise use reasonable efforts to comply with all
          applicable rules and regulations of the SEC and make available to its
          securityholders, as soon as reasonably practicable, an earnings
          statement covering the period of at least twelve months beginning with
          the first full calendar month after the effective date of such
          registration statement, which earnings statement shall satisfy the
          provisions of Section 11(a) of the Securities Act;

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

               (i)  use its reasonable efforts to list all Registrable
          Securities covered by such registration statement on any securities
          exchange on which any of the Company's Common Stock is then listed.

          3.2  Information Requirements. It shall be a condition precedent to
               ------------------------
the obligations of the Company to take any action with respect to registering
the Purchasers' Registrable Securities pursuant to this Section 3 that the
Purchasers furnish the Company in writing such information regarding the
Purchasers, the Registrable Securities and other securities of the Company held
by the Purchasers, and the distribution of such securities as the Company may
from time to time reasonably request in writing. If a Purchaser refuses to
provide the Company with any of such information on the grounds that it is not
necessary to include such information in the registration statement, the Company
may exclude the Purchaser's Registrable Securities from the registration
statement unless such Purchaser provides the Company with an opinion of counsel,
which opinion and counsel shall be reasonably satisfactory to the Company and
its counsel, to the effect that such information need not be included in the
registration statement.

                                       6
<PAGE>

          The Purchasers agree by acquisition of such Registrable Securities
that upon receipt of any notice from the Company of the happening of any event
of the kind described in Section 3.1(f), the Purchasers will forthwith
discontinue the Purchasers' disposition of Registrable Securities pursuant to
the registration statement relating to such Registrable Securities until the
Purchasers' receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3.1(f) and, if so directed by the Company, will deliver
to the Company copies, other than permanent file copies then in the Purchasers'
possession, of the current prospectus relating to such Registrable Securities at
the time of receipt of such notice.

          SECTION 4.  UNDERWRITTEN OFFERINGS.
                      ----------------------

          If requested by the underwriters for any underwritten offering of
Registrable Securities pursuant to a registration under Section 2 hereof, the
Company will enter into an underwriting agreement with such underwriters for
such offering, such agreement to be satisfactory in substance and form to the
Purchasers and the underwriters and to contain such representations and
warranties by the Company and such other terms as are generally prevailing in
agreements of this type, including, without limitation, indemnities to the
effect and to the extent provided in Section 6 hereof. The Purchasers will
cooperate with the Company in the negotiation of the underwriting agreement and
will give consideration to the reasonable requests of the Company regarding the
form thereof, provided that nothing herein contained shall diminish the
              --------
foregoing obligations of the Company. If requested by the underwriters of any
underwritten offering pursuant to a registration under Section 2 hereof, the
Purchasers agree to enter into an agreement with such underwriters not to sell
their shares of stock in the Company for a period of time (not to exceed 180
days) after the effectiveness of a registration statement equal to the period of
time which the sellers of securities in such registration have agreed not to
sell their shares after the effectiveness of such registration statement. The
Purchasers shall be a party to such underwriting agreement. The Purchasers shall
not be required to make any representations, warranties or agreements with the
Company other than representations, warranties or agreements regarding the
Purchasers, Purchasers' Registrable Securities and other securities of the
Company, the Purchasers' intended method of distribution, and any
representations, warranties or agreements required by law.

          SECTION 5.  PREPARATION; REASONABLE INVESTIGATION.
                      -------------------------------------

          In connection with the preparation and filing of each registration
statement under the Securities Act pursuant to this Agreement, the Company will
give the Purchasers and their respective agents and advisors and the
underwriters, if any, the reasonable opportunity to participate in the
preparation of such registration statement, each prospectus included therein or
filed with the SEC, and each amendment thereof or supplement thereto, and will
give each of them such access to its books and records and such opportunities to
discuss the business of the Company with its officers and the independent public
accountants who have certified its financial statements as shall be necessary,
in the option of the Purchasers' counsel, to conduct a reasonable investigation
within the meaning of the Securities Act. Subject to the rights and obligations
of the Company under the Securities Act and other applicable laws, the
Purchasers

                                       7
<PAGE>

shall have the right to review and approve those portions of such registration
statement that directly pertain to the Purchasers.

          SECTION 6.  INDEMNIFICATION.
                      ---------------

          6.1  Indemnification by the Company. In the event any Registrable
               ------------------------------
Securities are included in a registration statement under this Agreement, to the
extent permitted by law, the Company will, and hereby does, indemnify and hold
harmless each Purchaser, its directors and officers, each other Person who
participates as an underwriter in the offering or sale of such securities and
each other Person, if any, who controls each Purchaser or any such underwriter
within the meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which each Purchaser or any such director or
officer or underwriter or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any registration statement
under which such securities were registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and the Company will
reimburse the Purchasers and each such director, officer, underwriter and
controlling person for any legal or any other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim,
liability, action or proceeding; provided that the Company shall not be liable
                                 --------
in any such case to the extent that any such loss, claim, damage, liability (or
action or proceeding in respect thereof) or expense arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement, any such preliminary prospectus,
final prospectus, summary prospectus, amendment or supplement in reliance upon
and in conformity with written information furnished to the Company by the
Purchasers, and provided further that the Company shall not be liable to any
                -------- -------
Person who participates as an underwriter in the offering or sale of Registrable
Securities or any other Person, if any, who controls such underwriter within the
meaning of the Securities Act, in any such case to the extent that any such
loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of such Person's failure to send or give a copy of the final
prospectus, as the same may be then supplemented or amended to the Person
asserting an untrue statement or alleged untrue statement or omission or alleged
omission at or prior to the written confirmation of the sale of Registrable
Securities to such Person if such statement or omission was corrected in such
final prospectus and such delivery would have mitigated liability. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Purchasers or any such director, officer,
underwriter or controlling person and shall survive the transfer of such
securities by such seller.

          6.2  Indemnification by the Purchasers. In the event any Registrable
               ---------------------------------
Securities are included in a registration statement under this Agreement, to the
extent permitted by law, each Purchaser whose Registrable Securities are
registered pursuant to such registration statement will, and hereby does
indemnify and hold harmless (in the same manner and to the same extent

                                       8
<PAGE>

as set forth in Section 6.1) each underwriter, each Person who controls such
underwriter within the meaning of the Securities Act, the Company, each director
of the Company, each officer of the Company and each other Person, if any, who
controls the Company within the meaning of the Securities Act, with respect to
any statement or alleged statement in or omission or alleged omission from such
registration statement, any preliminary prospectus, final prospectus or summary
prospectus contained therein, or any amendment or supplement thereto, if such
statement or alleged statement or omission or alleged omission was made in
reliance upon and in strict conformity with written information furnished to the
Company by the Purchasers expressly for use in the preparation of such
registration statement, preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement; provided that the Purchasers shall not be
                                     --------
liable to any Person who participates as an underwriter in the offering or sale
of Registrable Securities or any other Person, if any, who controls such
underwriter within the meaning of the Securities Act, in any such case to the
extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of such Person's failure to send or give
a copy of the final prospectus, as the same may be then supplemented or amended,
to the Person asserting an untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the sale
of Registrable Securities to such Person if such statement or omission was
corrected in such final prospectus. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of any
underwriter, the Company or any such director, officer or controlling Person and
shall survive the transfer of such securities by such seller.

          6.3  Notices of Claims, etc. Promptly after receipt by an indemnified
               -----------------------
party of notice of the commencement of any action or proceeding involving a
claim referred to in Sections 6.1 and 6.2, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party, give
written notice to the latter of the commencement of such action; provided that
                                                                 --------
the failure of any indemnified party to give notice as provided herein shall not
relieve the indemnifying party of its obligations under the preceding
subdivisions of this Section 6, except to the extent that the indemnifying party
is actually prejudiced by such failure to give notice. In case any such action
is brought against an indemnified party, unless in such indemnified party's
reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party
shall be entitled to participate in and to assume the defense thereof, jointly
with any other indemnifying party similarly notified to the extent that it may
wish, with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party for any legal or other expenses subsequently incurred by
the latter in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the consent of the
indemnified party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect to such claim or litigation. No indemnified party shall consent to
entry of any judgment or enter into any settlement without the consent of the
indemnifying party.

                                       9
<PAGE>

          6.4  Other Indemnification. Indemnification similar to that specified
               ---------------------
in the preceding subdivisions of this Section 6 (with appropriate modifications)
shall be given by the Company and the Purchasers with respect to any required
registration or other qualification of securities under any Federal or state law
or regulation of any governmental authority other than the Securities Act.

          6.5  Indemnification Payments. The indemnification required by this
               ------------------------
Section 6 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred.

          6.6  Contribution. If the indemnification provided for in this Section
               ------------
6 from the indemnifying party is unavailable to an indemnified party hereunder
in respect of any losses, claims, damages, liabilities or expenses referred to
therein, then the 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 loss, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and indemnified parties in connection with the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations. The relative fault of such indemnifying party
and indemnified parties shall be determined by reference to, among other things,
whether any action in question, including any untrue statement of material fact
or omission or alleged omission to state a material fact, has been made by, or
relates to information supplied by, such indemnifying party or indemnified
parties, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such action. The amount paid or payable by a
party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include, subject to the limitations set
forth in Section 6.3 hereof, any legal or other fees or expenses reasonably
incurred by such party in connection with any investigation or proceeding.

          The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6.6 were determined by pro rata allocation
                                                             --- ----
or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 6.6 no underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities underwritten by it and distributed to
the public were offered to the public exceeds the amount of any damages which
such underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. 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.

          If indemnification is available under this Section 6, the indemnifying
parties shall indemnify each indemnified party to the full extent provided in
Section 6.1 through Section 6.5 hereof without regard to the relative fault of
said indemnifying party or indemnified party or any other equitable
consideration provided for in this Section 6.6.

                                       10
<PAGE>

          SECTION 7.  REPORTING REQUIREMENTS UNDER EXCHANGE ACT.
                      -----------------------------------------

          The Company shall use its reasonable efforts to keep effective the
registration of its Common Stock under Section 12 of the Exchange Act and shall
timely file such information, documents and reports as the SEC may require or
prescribe under Section 13 of the Exchange Act. The Company shall timely file
such information, documents and reports which a corporation, partnership or
other entity subject to Section 13 or 15(d) (whichever is applicable) of the
Exchange Act is required to file.

          So long as the Company is subject to the reporting requirements of
either Section 13 or 15(d) of the Exchange Act, the Company shall forthwith upon
request furnish the Purchasers (i) a written statement by the Company that it
has complied with such reporting requirements, (ii) a copy of the most recent
annual or quarterly report of the Company, and (iii) such other reports and
documents filed by the Company with the SEC as the Purchasers may reasonably
request in availing itself of an exemption for the sale of Registrable
Securities without registration under the Securities Act. The Company
acknowledges and agrees that the purpose of the requirements contained in this
Section 7 are to enable the Purchasers to comply with the current public
information requirement contained in Paragraph (c) of Rule 144 under the
Securities Act should the Purchasers ever wish to dispose of any of the
Securities of the Company acquired by it without registration under the
Securities Act in reliance upon Rule 144 (or any other similar exemptive
provision). In addition, the Company shall take such other measures and file
such other information, documents and reports, as shall hereafter be required by
the SEC as a condition to the availability of Rule 144 under the Securities Act
(or any similar exemptive provision hereafter in effect).

          SECTION 8.  SHAREHOLDER INFORMATION.
                      -----------------------

          The Company may require the Purchasers to furnish the Company such
information in writing with respect to the Purchasers and the distribution of
its Registrable Securities as the Company may from time to time reasonably
request in writing and as shall be required by law or by the SEC in connection
therewith.

          SECTION 9.  FORMS.
                      -----

          All references in this Agreement to particular forms of registration
statements are intended to include, and shall be deemed to include, references
to all successor forms which are intended to replace, or to apply to similar
transactions as, the forms herein referenced.

          SECTION 10. TRANSFER OF REGISTRATION RIGHTS.
                      -------------------------------

          The registration rights granted to the Purchasers under this Agreement
may not be transferred without the prior written consent of the Company, which
shall not be unreasonably withheld.

                                       11
<PAGE>

          SECTION 11. AMENDMENT.
                      ---------

          This Agreement may be amended only by a written agreement signed by
the Company and the Purchasers.

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

          All notices, requests, consents and other communications required or
permitted hereunder shall be in writing and shall be delivered, or mailed first-
class postage prepaid, registered or certified mail,

               (a) If to a Purchaser at its respective address as shown on the
          books of the Company, or at such other address as such Purchaser may
          specify by written notice to the Company, or

               (b) If to the Company at 1690 Chantilly Drive, Atlanta, Georgia
          30324, Attention: President; or at such other address as the Company
          may specify by written notice to the Purchaser,

and such notices and other communications shall for all purposes of this
Agreement be treated as being effective or having been given if delivered
personally, or, if sent by mail, when received.

          SECTION 13. COUNTERPARTS.
                      ------------

          This Agreement may be executed concurrently 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.

          SECTION 14. CHOICE OF LAW.
                      -------------

          THIS AGREEMENT AND THE VALIDITY AND ENFORCEABILITY HEREOF SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICT OF LAWS RULES OR CHOICE OF
LAWS RULES THEREOF EXCEPT SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW.

          SECTION 15. SEVERABILITY.
                      ------------

          Should any one or more of the provisions of this Agreement or any
agreement entered into pursuant to this Agreement be determined to be illegal or
unenforceable, all other provisions of this Agreement and of each other
agreement entered into pursuant to this Agreement, shall be given effect
separately from the provision or provisions determined to be illegal or
unenforceable and shall not be affected thereby.

                                       12
<PAGE>

          SECTION 16. WHOLE AGREEMENT.
                      ---------------

          This Agreement constitutes the complete agreement and understanding by
and among the parties hereto and shall supersede any prior understanding,
agreement or representation by or among the parties, whether written or oral,
related to the subject matter hereof.

                                       13
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized representatives effective the day and year
first above written.

                              GRACE DEVELOPMENT INC.

                              By:  ____________________________________________
                                   Name:  _____________________________________
                                   Title: _____________________________________
<PAGE>

                         PURCHASERS:

                         GREENLIGHT CAPITAL, L.P.

                              By:  Greenlight Capital, L.L.C., its
                                   general partner

                                   By:________________________________________
                                   Name:______________________________________
                                   Title:_____________________________________

                         GREENLIGHT CAPITAL QUALIFIED L.P.

                              By:  Greenlight Capital, L.L.C., its
                                   general partner

                                   By:________________________________________
                                   Name:______________________________________
                                   Title:_____________________________________

                         GREENLIGHT CAPITAL OFFSHORE, LTD.

                         By:__________________________________________________
                         Name:________________________________________________
                         Title:_______________________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]