Document:

monument8kex101_352008.htm

     

     

    
      

      

    

    
 

    EXHIBIT
10.01

    

    

    

    

    

    

    

    

    MONUMENT
RESOURCES, INC.

    

    

    UNIT
PURCHASE AGREEMENT

    

    

    

    March 5,
2008

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    

    
      
        	 	 	Page 
	
                1.

              	
                Authorization
      and Reservation of Common Stock and Warrants; Purchase and Sale of
      Units.

              	
                1

              
	
                1.1.

              	
                Authorization
      and Reservation of Common Stock and Warrants

              	
                1

              
	
                1.2.

              	
                Authorization
      of Warrants

              	
                1

              
	
                1.3.

              	
                Purchase
      and Sale of the Common Stock

              	
                1

              
	
                1.4

              	
                The
      Closing

              	
                1

              
	 
      	 
      	 
      
	
                2.

              	
                Representations
      and Warranties of the Company

              	
                2

              
	
                2.1.

              	
                Organization
      and Corporate Power

              	
                2

              
	
                2.2.

              	
                Authorization

              	
                2

              
	
                2.3.

              	
                Capitalization

              	
                2

              
	
                2.4.

              	
                Subsidiaries

              	
                3

              
	
                2.5.

              	
                Reports
      and Financial Statements

              	
                3

              
	
                2.6.

              	
                Absence
      of Undisclosed Liabilities

              	
                4

              
	
                2.7.

              	
                Absence
      of Certain Developments

              	
                4

              
	
                2.8.

              	
                Title
      to Properties

              	
                4

              
	
                2.9.

              	
                Tax
      Matters

              	
                4

              
	
                2.10.

              	
                Contracts
      and Commitments

              	
                4

              
	
                2.11.

              	
                No
      Defaults

              	
                4

              
	
                2.12.

              	
                Intellectual
      Property

              	
                5

              
	
                2.13.

              	
                Effect
      of Transactions

              	
                5

              
	
                2.14.

              	
                No
      Governmental Consent or Approval Required

              	
                5

              
	
                2.15.

              	
                Litigation

              	
                6

              
	
                2.16.

              	
                Securities
      Laws

              	
                6

              
	
                2.17.

              	
                Business

              	
                6

              
	
                2.18.

              	
                Brokerage

              	
                6

              
	
                2.19.

              	
                Employees

              	
                6

              
	
                2.20.

              	
                Environmental
      Matters

              	
                6

              
	
                2.21.

              	
                Retirement
      Obligations, etc.

              	
                7

              
	
                2.22.

              	
                Transactions
      with Affiliates

              	
                7

              
	
                2.23.

              	
                Books
      and Records

              	
                7

              
	
                2.24.

              	
                Insurance

              	
                8

              
	
                2.25.

              	
                No
      Unlawful Payments

              	
                8

              
	
                2.26.

              	
                Sarbanes-Oxley
      Act

              	
                8

              
	
                2.27.

              	
                Material
      Facts

              	
                8

              

      

       

      
        
           

        

        
          
            i

          

          
            

          

        

        
           

        

      

       

       

      
        	 
      	 
      	 
      
	
                3.

              	
                Representations
      and Warranties and other Agreements of the Investors

              	
                8

              
	
                3.1.

              	
                Authorization

              	
                8

              
	
                3.2.

              	
                Purchase
      Entirely for Own Account

              	
                9

              
	
                3.3.

              	
                Restricted
      Securities

              	
                9

              
	
                3.4.

              	
                Financial
      Condition

              	
                9

              
	
                3.5.

              	
                Experience

              	
                9

              
	
                3.6.

              	
                Receipt
      of Information

              	
                9

              
	
                3.7.

              	
                Brokerage

              	
                9

              
	
                3.8.

              	
                Address

              	
                9

              
	
                3.9.

              	
                Legends

              	
                9

              
	 
      	 
      	 
      
	
                4.

              	
                Conditions
      to an Investor’s Obligations at the Closing

              	
                10

              
	
                4.1.

              	
                Representations
      and Warranties of the Company

              	
                10

              
	
                4.2.

              	
                Performance

              	
                10

              
	
                4.3.

              	
                Compliance
      Certificate

              	
                10

              
	
                4.4.

              	
                Qualifications

              	
                10

              
	
                4.5.

              	
                Proceedings
      and Documents

              	
                10

              
	
                4.6.

              	
                Other
      Agreements

              	
                10

              
	
                4.7.

              	
                Secretary’s
      Certificate

              	
                10

              
	
                4.8.

              	
                Reservation
      of Conversion Units

              	
                11

              
	 
      	 
      	 
      
	
                5.

              	
                Conditions
      to the Company’s Obligations at the Closing.

              	
                11

              
	
                5.1.

              	
                Representations
      and Warranties

              	
                11

              
	
                5.2.

              	
                Payment
      of Purchase Price

              	
                11

              
	
                5.3.

              	
                Proceedings
      and Documents

              	
                11

              
	 
      	 
      	 
      
	
                6.

              	
                Right
      of First Refusal

              	
                11

              
	
                6.1.

              	
                Company’s
      Right of First Refusal

              	
                11

              
	
                6.2.

              	
                Notice
      of Proposed Transfer

              	
                11

              
	
                6.3.

              	
                Exercise
      of Right of First Refusal

              	
                12

              
	
                6.4.

              	
                Purchase
      Price

              	
                12

              
	
                6.5.

              	
                Payment
      of Purchase Price

              	
                12

              
	
                6.6.

              	
                Selling
      Stockholder’s Right to Transfer

              	
                12

              
	
                6.7.

              	
                Exception
      for Affiliate Transfers

              	
                12

              
	
                6.8.

              	
                Assignment
      of Right of First Refusal

              	
                12

              
	
                6.9.

              	
                Right
      to Participate Pro Rata in Future Issuances

              	
                13

              

      

       

      
         

        
          
             

          

          
            
              ii

            

            
              

            

          

          
             

          

        

         

         

      

      
        	 
      	 
      	 
      
	
                7.

              	
                Additional
      Covenants of the Company

              	
                13

              
	
                7.1.

              	
                Management
      and Information Rights

              	
                13

              
	
                7.2.

              	
                Directors’
      and Officers’ Insurance

              	
                13

              
	
                7.3.

              	
                Board
      Matters

              	
                13

              
	 
      	 
      	 
      
	
                8.

              	
                Miscellaneous.

              	
                13

              
	
                8.1.

              	
                Certain
      Defined Terms

              	
                13

              
	
                8.2.

              	
                Survival
      of Covenants; Assignability of Rights

              	
                14

              
	
                8.3.

              	
                Incorporation
      by Reference

              	
                14

              
	
                8.4.

              	
                Parties
      in Interest

              	
                14

              
	
                8.5.

              	
                Amendments
      and Waivers

              	
                14

              
	
                8.6.

              	
                Governing
      Law

              	
                14

              
	
                8.7.

              	
                Notices

              	
                14

              
	
                8.8.

              	
                Effect
      of Headings

              	
                15

              
	
                8.9.

              	
                Entire
      Agreement

              	
                15

              
	
                8.10.

              	
                Severability

              	
                15

              
	
                8.11.

              	
                Counterparts

              	
                15

              

      

    

    

    
       

      
        
           

        

        
          
            iii

          

          
            

          

        

        
           

        

      

       

    

     

    MONUMENT
RESOURCES, INC.

    

    UNIT
PURCHASE AGREEMENT

    

    This UNIT
PURCHASE AGREEMENT (the “Agreement”) is made
as of the 5th day of
March, 2008 by and between Monument Resources, Inc., a Colorado corporation
(“Monument” or
the “Company”),
and MNB Energy, LLC (“MNB”) and A.G. Foust
(“Foust”).  MNB
and Foust are referred to herein collectively as the “Investors” however
their rights and obligations hereunder are several and not joint, as indicated
in Exhibit A
hereto.

    

    In
consideration of the mutual promises and covenants contained in this Agreement,
the parties hereto agree as follows:

    

    1.        
     Authorization and
Reservation of Common Stock and Warrants; Purchase and Sale of
Units.

    

    1.1.           Authorization and
Reservation of Common Stock and Warrants.  The Company has
authorized the issuance and sale of up to 2,400,000 shares of its Common Stock,
no par value per share (the “Common Stock”) to be
issued under this Agreement.  The Company has also reserved for
issuance up to 2,400,000 shares of its Common Stock for possible issuance under
the Warrants described in Section 1.2 below.  The rights, privileges,
and preferences of the Common Stock are as set forth in the Company’s Articles
of Incorporation and amendments thereto the “Articles”), which the
Company has filed with the Secretary of State of the State of
Colorado.

    

    1.2.           Authorization of
Warrants.  The Company has authorized the issuance of warrants
to purchase, and authorized the issuance pursuant to such warrants, of up to
2,400,000 shares of its Common Stock (the “Warrants”).  The
Warrants shall be exercisable for a period of two years expiring March 4, 2010
at an exercise price of $0.40 per share of Common Stock.  The Warrants
authorized and to be issued hereunder shall be in the forms attached hereto as
Exhibit B-1 and
Exhibit
B-2.

    

    1.3.           Purchase and Sale of the
Common Stock.  Subject to the terms and conditions of this
Agreement and on the basis of the representations and warranties set forth
herein, the Company agrees to sell to the Investors, and the Investors agree to
purchase from the Company at a Closing (as defined below) up to 2,400,000 shares
of the Company’s Common Stock and Warrants to purchase up to 2,400,000 shares of
Common Stock.  The shares of Common Stock and Warrants issued to the
Investors pursuant to this Agreement and shares of Common Stock issued or
issuable under the Warrants shall be collectively referred to in this Agreement
as the “Units”
and each Unit shall consist of one share of Common Stock and one Warrant to
purchase one share of Common Stock.

    

    1.4.           The
Closing.

    

       
(a)           The closing
of the purchase and sale of the Units will take place at the offices of Jones
& Keller, P.C., 1625 Broadway, Suite 1600, Denver, Colorado 80202 or at such
other place as the parties shall mutually agree on or about March 5, 2008
at

     

    
      
         

      

      
        -
1 -

        
          

        

      

      
         

      

    

     

    10 a.m.
MST (the “Closing”).  At
the Closing, the Company shall sell, and the Investors shall purchase, on the
terms and conditions contained in this Agreement, 2,400,000 Units, at a purchase
price of $0.25 per Unit.  The Closing shall take place concurrently
with the execution and delivery of this Agreement or at such other time as the
parties shall mutually agree.

     

       
(b)           At the
Closing, the Investors shall pay $600,000 in cash or cleared bank funds (the
“Purchase
Price”) to the Company and the Company shall deliver 2,400,000 Units to
the Investors (in the form of certificates representing a total of 2,400,000
shares of Common Stock and Warrants to purchase a total of 2,400,000 shares of
Common Stock) as allocated on Exhibit A
hereto.  Other documents and certificates as described in Sections 4
and 5 below shall also be executed and delivered at Closing.

     

    2.           Representations and
Warranties of the Company.  In order to induce the Investors to
enter into this Agreement and to purchase the Units hereunder, the Company
hereby represents and warrants to the Investors, as of the date hereof, each of
the following.  Reference to the “Company” below refers to and
specifically includes Monument and its wholly owned subsidiary COG Transmission
Corporation (“COG”).

    

    2.1.           Organization and Corporate
Power.  Monument and COG are corporations duly organized,
validly existing and in corporate good standing under the laws of the States of
Colorado and Kansas, respectively.  The Company is duly qualified to
do business as a foreign corporation and is in good standing under the laws of
each jurisdiction in which either the ownership or use of its assets, or the
nature of its activities, requires such qualification, except where failure to
be so qualified would not have a material adverse effect on Monument or COG,
either collectively or individually.  The Company has all required
corporate power and authority to own its property, to carry on its business as
presently conducted or contemplated to be conducted, and to carry out the
transactions contemplated hereby.  The copies of the Articles of
Incorporation and By-Laws of the Company, as amended to date, which are on file
with the Colorado Secretary of State and the Kansas Secretary of State,
respectively, and which have been furnished to MNB by the Company, are correct
and complete.

    

    2.2.           Authorization.  This
Agreement, and any other agreements, instruments, exhibits or documents entered
into at the Closing by the Company pursuant to this Agreement (the “Transaction
Documents”) have been duly executed and delivered by the Company and are
the legal, valid and, assuming due execution and delivery by the other parties
hereto and thereto, binding obligations of the Company, enforceable in
accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization and moratorium laws and other laws of general application
affecting enforcement of creditors’ rights generally.  The execution,
delivery and performance of each of the Transaction Documents have been duly
authorized by all necessary corporate action of the Company.

    

    2.3.           Capitalization.  The
entire authorized capital stock of the Company consists of 10,000,000 shares of Common Stock,
with no par value per share (the “Common Stock”), of
which 5,319,000 shares are issued and
outstanding and 1,000,000 shares of Preferred Stock, of which no shares are
issued and outstanding.  The Company holds no shares of Common Stock
or Preferred Stock in its treasury.  The Company has authorized the
issuance of up to 2,400,000

    
      
         

      

      
        -
2 -

        
          

        

      

      
         

      

    

    shares of
Common Stock for issuance and sale to the Investors pursuant to this Agreement
and has reserved up to another 2,400,000 shares of Common Stock for possible
issuance under the Warrants.  When issued and paid for in accordance
with the terms of this Agreement or the Warrant Agreement as the case may be,
the shares of Common Stock, Warrants and shares of Common Stock underlying the
Warrants will be duly authorized, validly issued and outstanding, fully paid and
nonassessable.  There are no outstanding options or other rights to
purchase or acquire from the Company, or exchangeable for or convertible into,
any shares of its capital stock.  There are no preemptive rights with
respect to the issuance or sale by the Company of the shares of Common Stock or
Warrants or any other capital stock of the Company.  Except as imposed
by applicable securities laws, upon the Closing there will be no restrictions on
the transfer or voting of any shares of the Company’s Common Stock or
restrictions on transfer of its Warrants, other than restrictions on transfer
necessary to preserve the exemptions pursuant to which such securities were
issued without registration under applicable securities laws.  The
Company has not violated the 1933 Act or any state Blue Sky or securities laws
in connection with the issuance of any of its securities.

    

    2.4.           Subsidiaries.  All
of the outstanding shares of capital stock of COG are owned by Monument and are
validly issued, fully paid, nonassessable and free of preemptive
rights.  There are no subscriptions, options, warrants, rights, calls,
contracts or other commitments, understandings, restrictions or arrangements
relating to the issuance or sale with respect to any shares of capital stock of
COG, including any right of conversion or exchange under any outstanding
security, instrument or agreement.  Other than COG, the Company has no
subsidiaries.

    

    2.5.           Reports and Financial
Statements.  The Company has filed with the Securities and
Exchange Commission all forms, statements, reports and documents (including all
exhibits thereto) (the “Company SEC Reports”)
required to be filed by it under the Securities Exchange Act of 1934 and the
rules and regulations thereunder (“‘34 Act”), all of
which complied when filed in all material respects with requirements of the ‘34
Act.  As of their respective dates, the Company SEC Reports did not
contain any 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.  The audited consolidated financial statements of the
Company included in its Annual Report on Form 10-KSB for the years ended
September 30, 2007, September 30, 2006, and September 30, 2005 and its
Quarterly Report on Form 10-QSB for the quarter ended December 31, 2007 (the
“Company Financial
Statements”) have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis (except as may be indicated
therein or in the notes thereto) and present fairly in all material respects the
financial position of the Company and its subsidiary as of the dates thereof and
the results of their operations and changes in financial position for the
periods then ended.

    

    2.6.           Absence of Undisclosed
Liabilities.  Except as and to the extent accurately set forth
in the Financial Statements, the Company does not have, individually or
collectively, any accrued or contingent liability in excess of
$10,000  arising out of any transaction or state of facts existing on
or prior to the date hereof.

    
      
         

      

      
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 2.7.          
 Absence
of Certain Developments.  Since December 31, 2007, there has
been no (a) declaration, setting aside or payment of any dividend or other
distribution with respect to the capital stock of the Company, (b) loss,
destruction or damage to any material property of the Company, whether or not
insured, (c) labor trouble involving the Company or any material change in
any of its personnel or the terms and conditions of employment, (d) waiver
of any valuable right, (e) loan or extension of credit to any officer or
employee of the Company, (f) acquisition or disposition of any assets (or
any contract or arrangement therefor) in excess of $10,000 or any other material
transaction by the Company otherwise than for fair value in the ordinary course
of business, or (g) material adverse change in the condition, financial or
otherwise, of the Company or in its assets, liabilities, properties, business,
operations or prospects (a “Material
Adverse Change”).

    

    2.8.           Title to
Properties.  Other than any lien in respect of current taxes
not yet due and payable, the Company has good title or leasehold title to all
properties and assets necessary to its business as presently conducted and to
all of its properties and assets, free and clear of all mortgages, security
interests, liens, restrictions or encumbrances.  All machinery and
equipment included in such properties which is owned or leased by the business
of the Company is in good condition and repair except for reasonable wear and
tear, and all leases of real or personal property to which the Company is a
party are fully effective and afford the Company peaceful and undisturbed
possession of the subject matter of the lease.  To its knowledge, the
Company is not in material violation of any zoning, building or safety
ordinance, regulation or requirement or other law or regulation applicable to
the operation of owned or leased properties likely to impede the normal
operation of the business of the Company, and the Company has not received any
written or oral notice of violation with which it has not complied.

    

    2.9.           Tax
Matters.  There are no federal, state, county, local or foreign
taxes due and payable by the Company that have not been paid.  There
have been no examinations or audits of any tax returns or reports by any
applicable federal, state, local or foreign governmental agency and there is no
material tax deficiency that has been, or would reasonably be expected to be,
asserted against the Company or any of their respective
properties.  The Company has duly filed all federal, state, county,
local and foreign tax returns required to have been filed by it and there are in
effect no waivers of applicable statutes of limitations with respect to taxes
for any year.

    

    2.10.                      Contracts and
Commitments.  The Company has made available to the Investors
copies of each contract, obligation or commitment of the Company which
(a) involves by its terms a commitment in excess of $10,000 or is otherwise
material, (b) which by their terms expire one year or more after the date
hereof, or (c) not made in the ordinary course of
business.

    
      
         

      

      
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 2.11.    
No
Defaults.  The Company is not in default and has not violated
or breached any provision (a) under its Articles of Incorporation or its By-laws
or any note, indenture, mortgage, lease, agreement, contract, purchase order or
other instrument, document or agreement to which it is a party or (b) with
respect to any order, writ, injunction or decree of any court or any federal,
state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, that specifically names the
Company.  To the best of the Company’s knowledge, there exists no
condition, event or act which after notice, lapse of time, or both, could
constitute a default by the Company under any of the foregoing.  To
the best of the Company’s knowledge, no third party is in default under any
agreement, contract or other instrument, document, or agreement to which the
Company is a party, which default could cause a Material Adverse Change to the
Company or the business of the Company, as presently conducted or proposed to be
conducted.

    

    2.12.         
Intellectual
Property.  The Company owns, free and clear of any mortgage,
pledge, security interest, encumbrance or other lien, or has the valid right to
use all Intellectual Property used by it in its business as currently conducted
or as proposed to be conducted.  The conduct of the Company’s
businesses will not conflict in any material respect with any Intellectual
Property rights of others, and the Company has not received any notice of any
claim of infringement or conflict with any such rights of others.

    

    2.13.         
Effect of
Transactions.  The execution, delivery and performance of the
Transaction Documents, the issuance, sale and delivery of the Units or the
common stock to be issued upon the exercise of the Warrants, and compliance with
the provisions hereof and thereof by the Company, do not and will not, with or
without the passage of time or the giving of notice or both, (a) violate any
provision of law, statute, rule or regulation or any ruling, writ, injunction,
order, judgment or decree of any court, administrative agency or other
governmental body or (b) conflict with, or result in any breach of, any of the
terms, conditions or provisions of, or constitute a default (or give rise to any
right of termination, cancellation or acceleration) under, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the
properties or assets of the Company under its Articles of Incorporation or
By-Laws or under any note, indenture, mortgage, lease, agreement, contract,
purchase order or other instrument, document or agreement to which the Company
is a party.  At the time of issuance, the Units will be duly
authorized, validly issued, fully paid and nonassessable and not subject to any
preemptive rights.  The stock certificates and other instruments to be
executed and delivered by the Company to the Investors at the Closing will be
valid and binding obligations of the Company, enforceable in accordance with
their respective terms, and will effectively vest in Purchaser good title to all
the Units, free and clear of all encumbrances, except restrictions on transfer
arising under the Securities Act of 1933 or any applicable state securities
laws.

    

    2.14.        
 No Governmental
Consent or Approval Required.  Based in part on the
representations made by the Investors in Section 3 of this Agreement, other than
federal or state securities law filings which have been made or which will be
made in a timely manner, no authorization, consent, approval or other order of,
declaration to, or filing with, any governmental agency or body is required for
or in connection with the valid and lawful authorization, execution and delivery
by the Company of any of the Transaction Documents for, or in connection with,
the valid and lawful authorization, issuance, sale and delivery of the Units to
be issued upon the exercise of the Warrants.

    
      
         

      

      
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2.15.         Litigation.  There
is no claim, action, lawsuit, proceeding, complaint, charge or investigation
pending or, to the best knowledge of the Company, threatened against the Company
including any which questions the validity of any of the Transaction Documents
or the right of the Company to enter into them or to consummate the transactions
contemplated hereby or thereby, that could result in a Material Adverse Change
nor is the Company aware that there is any reasonable basis for the
foregoing.  Neither the Company nor any of its officers or directors,
is a party to, or subject to the provisions of, any order, writ, injunction,
judgment or decree of any court or governmental agency or
instrumentality.  There is no action, suit or proceeding by the
Company currently pending or which the Company presently intends to
initiate.

    

    2.16.        
Securities
Laws.  Assuming that the Investors’ representations and
warranties contained in Section 3 of this Agreement are true and correct, the
offer, issuance and sale by the Company to the Investors of the Units and the
common stock to be issued upon the exercise of the Warrants are, and will be as
of the Closing, exempt from the registration and prospectus delivery
requirements of the Securities Act of 1933.

    

    2.17.        
Business.  The
Company has all necessary franchises, permits, licenses and other rights and
privileges necessary to permit it to own its property and to conduct its present
business.  To the best of its knowledge, the Company is not in
violation of any law, regulation, authorization or order of any public authority
relevant to the ownership of its properties or the carrying on of its present
business which, either individually or in the aggregate, would result in any
Material Adverse Change.

    

    2.18.         Brokerage.  There
are no claims for brokerage commissions or finder’s fees or similar compensation
in connection with the transactions contemplated by this Agreement based on any
arrangement made by or on behalf of the Company, and the Company agrees to
indemnify and hold the Investors harmless against any damages incurred as a
result of any such claim.

    

    2.19.         Employees.  There
are no controversies or labor troubles pending, or to the best knowledge of the
Company, threatened between it and its employees.  To the best of the
Company’s knowledge:  (a) no officer or key employee of the Company
has any present intention of terminating his or her employment therewith nor
does the Company have any present intention of terminating any such employment;
and (b) the Company has complied in all material respects with all applicable
state, federal and foreign laws and regulations respecting employment and
employment practices, terms and conditions of employment, wages and hours and
other laws related to employment, and there are no arrears in the payments of
wages, withholding or social security taxes, unemployment insurance premiums or
other similar obligations.  The Company is not a party to any
agreement with any of its officers or employees with respect to such person’s
employment.  The Company is not a party to any collective bargaining
agreement.

    

    2.20.         Environmental
Matters.  To the best of its knowledge:

    

    (a)           The
Company is and has been in compliance with all applicable federal, state and
local laws, rules, requirements, decisions, orders and regulations relating to
the protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (the “Environmental Laws”)
applicable to the Company including but not limited to requirements contained in
and to obtain and maintain any permits, licenses, certificates or other
authorizations or approvals required pursuant to such Environmental Laws, and
there is not now pending or, to the Company’s knowledge, threatened, nor does
there exist any reasonable basis

    
      
         

      

      
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    for, any
actual or pending action, suit, lien, investigation or proceeding against the
Company in connection with any past or present action or inactions of the
Company or any noncompliance with such Environmental Laws, except with respect
to non-compliance that is not reasonably expected to result, either individually
or in the aggregate, in any Material Adverse Change.

    

    (b)           There
has been no storage, generation, transportation, handling, treatment, disposal,
discharge, emission, or other release of any kind of toxic wastes or hazardous
substances, including, but not limited to, any naturally occurring radioactive
materials, brine, drilling mud, crude oil, natural gas liquids and other
petroleum materials, by, due to or caused by the Company (or, to the best of the
Company’s knowledge, any other entity (including any predecessor) for whose acts
or omissions the Company is or would reasonably be expected to be liable) upon
any of the property now or previously owned or leased by the Company, in
violation of any Environmental Laws or in a manner or to a location that would
reasonably be expected to give rise to any liability under any Environmental
Laws, except for any violation or liability which would not, individually or in
the aggregate, cause a Material Adverse Change.

     

    (c)           There
are no proceedings that are pending, or that are known to be contemplated,
against the Company under any Environmental Laws in which a governmental entity
is also a party, other than such proceedings regarding which it is reasonably
believed no monetary sanctions of $10,000 or more will be imposed, and (ii) the
Company does not anticipate material capital expenditures relating to any
Environmental Laws.

     

    2.21.        
Retirement
Obligations, etc.  The Company has no pension, retirement or
similar plan or obligation or any employee benefit plan as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended.

    

    2.22.        
Transactions with
Affiliates.  Except to the extent that Foust is an Investor and
a party to the Transaction Documents, no stockholder, officer or director of the
Company nor any “affiliate” or “associate” of such Persons (as such terms are
defined in the rules and regulations promulgated under the 1933 Act) (herein, a
“Related
Party”) is a party to any agreement with the Company, including, without
limitation, any contract, agreement or other arrangement providing for the
rental of real or personal property from, or otherwise requiring payments to,
any Related Party.  No employee of the Company nor any Related Party
is indebted to the Company and, except for accrued payroll obligations, the
Company is not indebted to any of its employees or any Related
Party.

    

    2.23.        
Books and
Records.  The minute book of the Company contains complete and
accurate records of all meetings and other corporate actions of its
stockholders, Board of Directors and all committees, if any, appointed by its
Board of Directors.  The stock ledger of the Company is complete and
reflects all issuances, transfers, repurchases and cancellations of shares of
capital stock of the Company.  The books of account, ledgers, order
books, records and documents of the Company accurately and completely reflect
all material information relating to its business, the nature, acquisition,
maintenance, location and collection of its assets and the nature of all
transactions giving rise to its obligations and accounts
receivable.

    

    2.24.        
Insurance. The
Company has insurance covering its respective properties,

    
      
         

      

      
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    operations,
personnel and businesses, which insurance is in amounts and insures against such
losses and risks as are customary in the oil and gas business and adequate, in
all material respects, to protect the Company and its respective business; and
has not (i) received notice from any insurer or agent of such insurer that
capital improvements or other expenditures are required or necessary to be made
in order to continue such insurance or (ii) any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage at reasonable cost from similar insurers
as may be necessary to continue its business.

    

    2.25.        
No Unlawful
Payments. Neither the Company nor, to the knowledge of the Company, any
director, officer, agent, employee or other person acting on behalf of the
Company has (i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii)
made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; (iii) violated or is in
violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv)
made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.

     

    2.26.         
Sarbanes-Oxley
Act.  There is and has been no failure on the part of the
Company or any of the Company’s directors or officers, in their capacities as
such, to comply in all material respects with any applicable provision of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
connection therewith, including Section 402 related to loans and Sections 302
and 906 related to certifications.

     

    2.27.        
Material
Facts.  This Agreement and each other agreement, document,
certificate or written statement furnished or to be furnished to the Investors
through the Closing by or on behalf of the Company in connection with the
Closing, do not contain any untrue statement of a material fact or, when taken
as a whole, omit to state a material fact necessary to make the statements
contained therein or herein, in light of the circumstances in which they were
made, not misleading.

    

    3.             
Representations and
Warranties and other Agreements of the Investors.  Each
Investor severally, not jointly, hereby represents and warrants as of the date
hereof that:

    

    3.1.           Authorization.  The
Investor has full power and authority to execute, deliver and perform each of
the Transaction Documents and to acquire the Units.  Each of the
Transaction Documents constitute the valid and legally binding obligation of the
Investor, enforceable against the Investor in accordance with their respective
terms.  The Investor is an “accredited investor” within the meaning of
that term as defined in Rule 501(a) promulgated under the Securities Act of 1933
(“1933
Act”).

     

    3.2.           Purchase Entirely for Own
Account.  The Units will be acquired for investment for the
Investor’s own account and not with a view to the distribution of any part
thereof.  The Investor does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer, or grant
participations to such person or to any third person, with respect to any of the
Units.

     

    
      
         

      

      
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    3.3.           Restricted
Securities.  The Investors understand that the Units may not be
sold, transferred, or otherwise disposed of without registration under the 1933
Act, or an exemption therefrom, and that in the absence of an effective
registration statement covering the Units or an available exemption from
registration under the 1933 Act, the Units must be held
indefinitely.

     

    3.4.           Financial
Condition.  The Investor’s financial condition is such that
it/he is able to bear the risk of holding the Units for an indefinite period of
time and can bear the loss of its entire investment in its Units.

     

    3.5.           Experience.  The
Investor has such knowledge and experience in financial and business matters and
in making high-risk investments of this type that it/he is capable of evaluating
the merits and risks of the purchase of the Units.

     

    3.6.           Receipt of
Information.  The Investor has been furnished access to the
business records of the Company and such additional information and documents as
the Investor has requested and has been afforded an opportunity to ask questions
of and receive answers from representatives of the Company concerning the terms
and conditions of this Agreement, the purchase of the Units, the Company’s
business, operations, market potential, capitalization, financial condition and
prospects, and all other matters deemed relevant by the Investor.  In
particular:  (i) the Investor has received and carefully reviewed the
Company’s Annual Report on Form 10-KSB for the year ended September 30, 2007 and
its Report on Form 10-QSB for the quarter ended December 31, 2007 and
understands that the oil and gas business in which the Company is engaged is one
of extremely high risk; (ii) that the refusal of the Company’s single customer
to purchase gas during the first and last parts of 2007 has had a Material
Adverse Effect on the Company’s financial position and results of operations;
(iii) the Company’s single customer is not obligated to purchase any specified
amount of gas under the Gas Purchase Contract with that customer dated May 3,
2007; and (iv) it would be difficult if not impossible to find an alternative
customer to purchase the Company’s gas.

     

    3.7.           Brokerage.  There
are no claims for brokerage commissions or finder’s fees or similar compensation
in connection with the transactions contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of the Investor, and the Investor
agrees to indemnify and hold the Company harmless against any damages incurred
as a result of any such claims.

     

    3.8.           Address.  The
Investor has provided the Company with its/his true and correct
address.

     

    3.9.           Legends.  It
is understood that the certificates evidencing the Units may bear substantially
the following legends:

    

    (a)           “These
securities have not been registered under the Securities Act of
1933.  They may not be sold, offered for sale, pledged or hypothecated
in the absence of a registration statement in effect with respect to the
securities under such Act or an exemption from such registration (including
pursuant to Rule 144 of such Act).”

     

    (b)           Any
legend required by the laws of any applicable jurisdiction.

     

    
      
         

      

      
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4.        
      Conditions to an Investor’s
Obligations at the Closing.  The obligations of an Investor
under Section 1 of this Agreement to purchase the Units at the Closing are
subject to the fulfillment on or before such Closing of each of the following
conditions unless waived by such Investor in the sole discretion of such
Investor:

     

    

    4.1.           Representations and
Warranties of the Company.  The representations and warranties
of the Company contained in Section 2 shall be true and correct on and as of the
date hereof and on and as of the date of Closing with the same effect as though
such representations and warranties had been made on and as of the date of
Closing.

    

    4.2.           Performance.  The
Company shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it on or before Closing.

    

    4.3.           Compliance
Certificate.  The President and Chief Executive Officer of the
Company shall deliver to the Investors at Closing a certificate certifying that
the conditions specified in this Section 4 have been fulfilled (excluding
Section 4.5).

    

    4.4.           Qualifications.  All
authorizations, approvals, or permits, if any, of any governmental authority or
regulatory body of the United States or of any state or municipality or other
governmental entity that are required in connection with the lawful issuance and
sale of the Units to the Investors pursuant to this Agreement shall have been
duly obtained and shall be effective on and as of Closing other than those which
are not required to be obtained before Closing, which the Company will obtain in
a timely manner.

    

    4.5.           Proceedings and
Documents.  All corporate and other proceedings and approvals
in connection with the transactions contemplated at Closing and all documents
incident thereto shall be reasonably satisfactory in form and substance to the
Investors and the Investors’ counsel, and they shall have received all such
counterpart original and certified or other copies of such documents as they may
reasonably request.

    

    4.6.           Other
Agreements.  On or prior to Closing, the Warrant Certificates
and Registration Rights Agreement, in the forms attached hereto as Exhibit B-1, Exhibit B-2, and
Exhibit C,
respectively, shall have been executed and delivered by the parties thereto,
which shall continue to be in full force and effect as of Closing.

    

    4.7.           Secretary’s
Certificate.  The Secretary of the Company shall deliver to the
Investors purchasing Units at Closing a Certificate, dated as of the Closing,
certifying that attached thereto is a true and complete copy of all resolutions
adopted by the Board of Directors of the Company authorizing the execution,
delivery and performance of each of the Transaction Documents, the issuance,
sale and delivery of Units and the Common Stock issuable upon the exercise of
the Warrants and that all such resolutions are in full force and effect and are
all the resolutions adopted in connection with the transactions contemplated by
the Transaction Documents.

    

    4.8.           Reservation of Conversion
Units.  The shares of Common Stock issuable
upon

    
      
         

      

      
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    exercise
of the Warrants described in Section 1.2 above shall have been duly authorized
and reserved for issuance.

    

    5.    
         Conditions to the Company’s
Obligations at the Closing.

    

    The
obligations of the Company under Section 1 of this Agreement are subject to the
fulfillment on or before Closing of each of the following conditions unless
waived by the Company:

    

    5.1.           Representations and
Warranties.  The representations and warranties of such
Investor contained in Section 3 shall be true and correct on and as of the date
hereof and on and as of the date of the Closing with the same effect as though
such representations and warranties had been made on and as of the date of the
Closing.

    

    5.2.           Payment of Purchase
Price.  Both Investors shall have delivered payment of the
aggregate purchase price of the Units to be purchased by it/him at the Closing
as set forth in Section 1.3 and Exhibit A
hereto.

    

    5.3.           Proceedings and
Documents.  All corporate and other proceedings in connection
with the transactions contemplated at the Closing and all documents incident
thereto shall be reasonably satisfactory in form and substance to the Company
and the Company’s counsel, and they shall have received all such counterpart
original and certified or other copies of such documents as they may reasonably
request.

    

    6.       
      Right of First
Refusal.

    

    6.1.           Company’s Right of First
Refusal.  Before any Units (which shall be deemed to include
the Common Stock and Warrants issued and sold hereunder and any Common Stock
later acquired by an Investor upon exercise of the Warrants) held by an Investor
(a “Selling
Stockholder”) or any transferee (either being referred to herein as the
“Holder”) may
be sold or otherwise transferred (except transfer by gift or operation of law),
the Company and the other Investor shall each have a right of first refusal to
purchase the Units on the terms and conditions set forth in this Section (the
“Right of First
Refusal”).

    

    6.2.           Notice of Proposed
Transfer.  The Selling Stockholder shall (a) deliver to the
Company and the other Investor a written notice (the “Notice”) stating: (i)
the Selling Stockholder’s bona fide intention to sell or otherwise transfer such
Units; (ii) the name of each proposed purchaser or other transferee (“Proposed
Transferee”); (iii) the number of Units to be transferred to the Proposed
Transferee; (iv) the bona fide cash price or other consideration for which the
Selling Stockholder proposes to transfer the Units (the “Offered Price”); and
(v) the material terms and conditions of the proposed transfer (the “Offer Terms”) and (b)
offer the Units at the Offered Price and on the Offer Terms to the Company and
the other Investor.

    
      
         

      

      
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6.3.           Exercise
of Right of First Refusal.  At any time within 15 days after
receipt of the Notice, the Company and/or its assignee(s) may, by giving written
notice to the Selling Stockholder and the other Investor, elect to purchase some
or all of the Units proposed to be transferred to any one or more of the
Proposed Transferees, at the purchase price and on the terms determined in
accordance with subsection 6.4 below.  In the event the Company does
not elect to purchase all of such Units, the other Investor may by giving
written notice to the Company, and the Selling Stockholder, elect within 15 days
after the Company’s election to purchase some or all of such Units, at the
purchase price and on the terms determined in accordance with
subsection 6.4 below.

    

    6.4.           Purchase
Price.  The purchase price (“Purchase Price”) for
the Units purchased by the Company or its assignee(s) and/or by the other
Investor under this Section shall be the Offered Price, and the terms and
conditions of the transfer shall be identical in all material respects to the
Offer Terms.  If the Offered Price includes consideration other than
cash, the equivalent value of the non-cash consideration will be determined by
an independent third party valuation firm with expertise in valuing such
non-cash consideration chosen by the Board of Directors of the Company in good
faith.

    

    6.5.           Payment of Purchase
Price.  Payment of the Purchase Price will be made in
accordance with the Offer Terms within thirty (30) days after delivery of the
written notice by the Company and the written notice of the other Investor as
set forth in Section 6.3.

    

    6.6.           Selling Stockholder’s Right
to Transfer.  If the Units proposed in the Notice to be
transferred to a given Proposed Transferee are not purchased by the Company
and/or the other Investor as set forth in this Section, then the Selling
Stockholder may sell or otherwise transfer such Units to the Proposed Transferee
at the Offered Price or at a greater price and on the Offer Terms, provided that
such sale or other transfer be consummated within sixty (60) days after the date
of the Notice and provided further that any such sale or other transfer is
effected in accordance with applicable securities laws and the Proposed
Transferee agrees in writing that the provisions of this Section shall continue
to apply to the Units in the hands of such Proposed Transferee.  If
the Units described in the Notice are not transferred to the Proposed Transferee
within such period, a new right shall be given to the Company and the other
Investor, and the Company and the other Investor shall be offered the Right of
First Refusal before any Units held by the Selling Stockholder may be sold or
otherwise transferred.

    

    6.7.           Exception for Affiliate
Transfers.  Anything contrary contained in this Section
notwithstanding, the transfer of Units to an affiliate of an Investor (including
members of MNB) shall be exempt from the provisions of this
Section.  In such case, the transferee or other recipient shall
receive and hold the Units transferred subject to the provisions of this
Agreement, and there shall be no further transfer of such Units except in
accordance with the terms of this Section 6.

    

    6.8.           Assignment of Right of First
Refusal.  The First Refusal shall not be assignable
by any party hereto.

    
      
         

      

      
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6.9.           Right
to Participate Pro Rata in Future Issuances.  Both Investors
shall have a pro rata right, based on their percentage equity ownership in the
Company purchased pursuant to this Agreement and on a fully diluted basis to
participate in subsequent issuances of equity securities of the Company
(excluding those issuances under the Warrants being sold
hereunder.  In addition, should any Investor choose not to purchase
its full pro rata share, the remaining Investor shall have the right to purchase
the equity securities not purchased by the other Investor.

    

    7.           Additional Covenants of the
Company.

    

    7.1.           Management and Information
Rights.  The Investors will be granted access to Company
facilities and personnel during normal business hours and with reasonable
advance notification.  The Company will promptly deliver to the
Investors annual and quarterly financial statements, and other information as
reasonably requested by such Investor if the Investor is subject to a customary
Confidentiality Agreement containing a standstill provision.  MNB
shall have the right, in its sole discretion, to appoint one member or other
representative to observe operations or actively participate on the management
team for so long as MNB owns 20% or more of the Company’s outstanding Common
Stock.  Any compensation for that member will be contingent on the
Company’s financial capability at that time and the Company shall use its best
efforts to provide appropriate compensation to such person with the amount of
such compensation to be determined by the Board based on its assessment of the
value of the person’s contribution to the Company.

    

    7.2.           Directors’ and Officers’
Insurance.  The Company agrees to use its commercially
reasonable efforts to obtain adequate D&O insurance as soon as reasonably
practicable after Closing.

    

    7.3.           Board
Matters.  Foust shall take all actions necessary and desirable,
including voting all shares of capital stock of the Company over which he has
ownership or control, whether currently owned or later acquired, to appoint one
member designated by MNB to the Company’s three person Board of Directors for so
long as MNB owns 20% or more of the Company’s outstanding Common
Stock.  Foust shall take all actions necessary and desirable,
including voting all shares of capital stock of the Company over which he has
ownership or control to, whether currently owned or later acquired, to have the
Company’s Board of Directors increased to five (5) members, and to appoint a
second member designated by MNB to the Board, for so long as MNB owns 40% or
more of the Company’s outstanding Common Stock.

    

    8.          
   Miscellaneous.

    

    8.1.           Certain Defined
Terms.  As used in this Agreement, the term “Person” shall mean
an individual, corporation, trust, partnership, limited liability company, joint
venture, unincorporated organization, government agency or any agency or
political subdivision thereof, or other entity; and the terms “knowledge,”
“known,” “awareness,” “aware,” and similar expressions, when used with reference
to the Company, shall mean the actual knowledge or awareness of the executive
officers of the Company.

    
      
         

      

      
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8.2.           Survival
of Covenants; Assignability of Rights.  Subject to the last
clause of this Section, all covenants, agreements, representations and
warranties of the Company made herein and in the certificates, lists, Exhibits
or other written information delivered or furnished to the Investors in
connection with the Closing shall be deemed material and to have been relied
upon by the Investors, and, except as provided otherwise in this Agreement,
shall survive the delivery of the Units, and shall bind the Company’s successors
and assigns, whether so expressed or not; provided however, that all
representations and warranties made by the Company in Section 2 hereof shall
survive for a period of one year from the date of this Agreement.

    

    8.3.           Incorporation by
Reference.  All Exhibits appended to this Agreement are herein
incorporated by reference and made a part hereof.

    

    8.4.           Parties in
Interest.  All covenants, agreements, representations,
warranties and undertakings in this Agreement made by and on behalf of any of
the parties hereto shall bind and inure to the benefit of the respective
successors and permitted assigns of the parties hereto and to permitted
transferees of the Units whether so expressed or not.

    

    8.5.           Amendments and
Waivers.  Except as set forth in this Agreement, changes in or
additions to this Agreement may be made, or compliance with any term, covenant,
agreement, condition or provision set forth herein may be omitted or waived
(either generally or in a particular instance and either retroactively or
prospectively) upon the written consent of the Company and the Investors, acting
or voting together as a single class based on the number of shares of Common
Stock then owned; provided, however, that no
Investor shall, without its consent, be materially adversely affected by any
amendment, change or waiver in which all Investors are not likewise adversely
affected.

    

    8.6.           Governing
Law.  This Agreement shall be deemed a contract made under the
laws of the State of Colorado, together with the rights and obligations of the
parties hereunder, shall be construed under and governed by the laws of such
state.

    

    8.7.           Notices.  All
notices, requests, consents and demands shall be in writing and shall be
personally delivered (effective upon receipt), mailed, postage prepaid
(effective three business days after dispatch), telecopied or telegraphed
(effective upon receipt of the telecopy in complete, readable form), or sent via
a reputable overnight courier service (effective the following business day), to
the Company at:

    

    A.G.
Foust, President

    Monument
Resources, Inc.

    2050
South Oneida Street, Suite 106

    Denver,
Colorado 80224

    
      
         

      

      
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    with a
copy sent at the same time and by the same means to:

    

    Samuel E.
Wing, Esq.

    Jones
& Keller, P.C.

    1625
Broadway, Suite 1600

    Denver,
Colorado  80202

    Tel:           (303)
573-1600

    Fax:          (303)
573-0769

    

    or to MNB
Energy, LLC at:

    

    MNB
Energy, LLC

    1521
Oxbow Drive, #210

    Montrose,
Colorado  81401

    Tel.:           (970)
249-3398

    Fax:           (970)
249-1330

    

    with a
copy sent at the same time and by the same means to:

    

    Davis,
Graham & Stubbs LLP

    1550 17th
Street, Suite 500

    Denver,
Colorado  80202

    Attention:  Jeffrey
R. Brandel, Esq.

    Tel:           (303)
892-9400

    Fax:          (303)
892-7400

     

    or such
other address as is set forth on the Exhibits hereto, as the case may be, or as
may be furnished in writing to the other parties hereto.

    

    8.8.            Effect of
Headings.  The section and paragraph headings herein are for
convenience only and shall not affect the construction hereof.

    

    8.9.    
       Entire
Agreement.  This Agreement and the Exhibits hereto together
with any other agreement referred to herein (the “Additional
Agreements”) constitute the entire agreement among the Company and the
Investors with respect to the subject matter hereof.  This Agreement
and such Additional Agreements supersede all prior understandings and agreements
between the parties, whether written or oral, with respect to the Units
purchased hereunder and the subject matter hereof.

    

    8.10.          Severability.  In
case any one or more of the provisions contained in this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement and such invalid, illegal and unenforceable provision shall be
reformed and construed so that it will be valid, legal, and enforceable to the
maximum extent permitted by law.

    

    8.11.          Counterparts.  This
Agreement may be executed in counterparts, all of which together shall
constitute one and the same agreement.

    
      
         

      

      
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    IN WITNESS WHEREOF, the Company and the
Investors have executed this Unit Purchase Agreement as of the day and year
first above written.

    

    COMPANY:

    

    MONUMENT RESOURCES, INC., a Colorado
corporation

    

    

    By: /s/ A.G.
Foust

          Name:  A.G.
Foust

          Title:  President

    

    

    INVESTORS:

    

    MNB ENERGY, LLC, a Colorado limited
liability company

    

    

    By:        /s/ Matt
Miles                                                                         

    

    Its:         Manager                                                                                

    

    

    A.G. FOUST, INDIVIDUALLY

    

    

      /s/ A. G.
Foust        

    
      
         

      

      
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    EXHIBIT
A

    

    

    
      
        	
                Name of
      Investor

              	 	
                Number of
      Units*

              	 	 	
                Proceeds*

              	 
	 
      	 	 	 	 	 	 
	
                MNB
      Energy, LLC

              	 	 	2,000,000	 	 	$	500,000	 
	 
      	 	 	 	 	 	 	 	 
	
                A.G.
      Foust

              	 	 	400,000	 	 	 	100,000	 
	 
      	 	 	2,400,000	 	 	$	600,000	 

      

    

    __________________

    

    *The rights and obligations of the two
Investors under the Agreement are several and not joint.

     

    - 17-monument8kex102_352008.htm

     

     

    
      

      

    

     

    EXHIBIT
10.2

    

    REGISTRATION
RIGHTS AGREEMENT

    

    This Registration Rights Agreement
(this “Agreement”) is made
and entered into as of March 5, 2008, between Monument Resources, Inc., a
Colorado corporation (“Company”) and the
investors signatory hereto (each such investor is a “Holder” and all such
investors are, collectively, the “Holders”).

    

    WHEREAS, the parties have agreed to
enter into this Agreement in connection with, and as a condition to Closing,
under the Unit Purchase Agreement of even date herewith (the “Purchase Agreement”)
between the Company and the Holders.

    

    NOW, THEREFORE, IN CONSIDERATION of the
mutual covenants contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the
Company and the Holders agree as follows:

    1.      Definitions.  In
addition to the terms defined elsewhere in this Agreement, (a) capitalized terms
that are not otherwise defined herein have the meanings given to such terms in
the Purchase Agreement, and (b) the following terms have the meanings
indicated:

     

    “Holder” means any holder, from
time to time, of Registrable Securities.

     

    “Prospectus” means the
prospectus included in any Registration Statement, 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 any Registration Statement, and
all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

     

    “Registrable Securities” means
any Common Stock of the Company owned by any Holder on the date hereof, any
Common Stock issued or issuable pursuant to the Purchase Agreement, including
any Common Stock issued or issuable upon exercise of Warrants acquired by a
Holder under the Purchase Agreement, together with any securities issued or
issuable upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing.

     

    “Registration Statement” means
any registration statement of the Company filed with the Securities and Exchange
Commission (“Commission”) under
the Securities Act of 1933 (“Securities Act”)
which covers any of the Registrable Securities pursuant to the provisions of
this Agreement, 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 or deemed to be incorporated by reference in such registration
statement.

     

    
      
         

      

      
        Exhibit
10.2        Page 1

        
          

        

      

      
         

      

    

    2.             Demand
and Piggyback Registration Rights

     

    (a)           The
Holders of 30% of the Registrable Securities may require the Company to register
on Form S-1 or, if available, Form S-3, the sale by the Holders of Registrable
Securities for an aggregate offering price of at least
$250,000.  There are no limits on the aggregate number of such
registrations which may be requested, provided that there is no more than one
per year during any twelve month period.  The Company shall use its
best efforts to cause the Registration Statement to be declared effective under
the Securities Act as promptly as possible after the filing thereof (which
filing shall be within forty-five (45) business days after receipt of a
qualified Holder’s demand), and shall use its best efforts to keep such
Registration Statement continuously effective under the Securities Act until the
earlier of (i) the second anniversary after the effective date and
(ii) when all Registrable Securities covered by such Registration Statement
have been sold (the “Effectiveness
Period”).  The Company shall notify each Holder in writing
promptly (and in any event within one business day) after receiving notification
from the Commission that a Registration Statement has been declared
effective.

     

    (b)           Notwithstanding
the foregoing, the Company may postpone the filing of a Registration Statement
(for a period not exceeding 90 days) if its Board of Directors in good faith
determines that the filing or the distribution of the Registrable Securities
will adversely interfere with a public offering by the Company or with a
financing, acquisition, corporate reorganization or similar corporate
transaction.

     

    (c)           
If at any time there is not an effective Registration Statement covering all of
the Registrable Securities and the Company shall determine to prepare and file
with the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S­8 (each as promulgated under
the Securities Act) or their then equivalents relating to equity securities to
be issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall, no less than 20 days before filing such
registration statement, send to each Holder written notice of such determination
and, if within fifteen days after receipt of such notice, any such Holder shall
so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities as such Holder requests to be
registered.  If the registration referred to in this subsection (c)
involves an underwriting, the Company shall use its reasonable efforts to cause
the managing underwriter of the proposed underwritten offering to permit the
Holders of the Registrable Securities to register their securities in such
public offering on the same terms and conditions as are applicable to the
securities of the Company included therein.

     

    (d)           
In connection with any offering involving an underwriting of securities being
issued by the Company, the Company shall not be required under Section 2(c) to
include any of the Holders’ securities in such underwriting unless such Holders
accept the terms of the underwriting as agreed upon between the Company and the
underwriters selected by it, and then only in such quantity, if any, as in the
opinion of the underwriters, marketing factors allow (provided, however, that such
underwriting agreement shall not provide for indemnification or contribution
obligations on the part of the Holders materially greater than the obligations
of the Holders pursuant to Section 5(b)).  If the managing underwriter
for the offering shall advise the

     

    
      
         

      

      
        Exhibit
10.2        Page 2

        
          

        

      

      
         

      

    

    Company
in writing that the total amount of securities, including Registrable
Securities, requested by Holders, to be included in such offering exceeds the
amount of securities to be sold other than by the Company than marketing factors
allow, then the Company shall be required to include in the offering only that
number of such securities, including Registrable Securities which the managing
underwriter believes marketing factors allow.

     

    (e)           Notwithstanding
anything contained herein, in the event that the Commission requires the Company
to reduce the number of Registrable Securities to be included in a Registration
Statement in order to allow the Company to rely on Rule 415 with respect to a
Registration Statement, then the Company shall be obligated to include in such
Registration Statement (which may be a subsequent Registration Statement if the
Company needs to withdraw the initial Registration Statement and refile a new
Registration Statement in order to rely on Rule 415) only such limited portion
of the Registrable Securities as the Commission shall permit.  Any
Registrable Securities that are excluded in accordance with the foregoing terms
are hereinafter referred to as “Cut Back
Securities.”  To the extent Cut Back Securities exist, as soon
as may be permitted by the Commission, the Company shall be required to file a
Registration Statement covering the resale of the Cut Back Securities and shall
use best efforts to cause such Registration Statement to be declared effective
as promptly as practicable thereafter.

     

    3.           Registration
Procedures.  In connection with the Company’s registration
obligations hereunder, the Company shall:

     

    (a)           Not
less than three business days prior to the filing of each Registration Statement
or any related Prospectus or any amendment or supplement thereto (including any
document that would be incorporated or deemed to be incorporated therein by
reference), the Company shall (i) furnish to the Holders copies of all such
documents proposed to be filed, which documents (other than those incorporated
or deemed to be incorporated by reference) will be subject to the review of such
Holders, and (ii) cause its officers and directors, counsel and independent
registered public accounting firm to respond to such inquiries as shall be
necessary, in the reasonable opinion of respective counsel, to conduct a
reasonable investigation within the meaning of the Securities
Act.  The Company shall not file the Registration Statement or any
such Prospectus or any amendments or supplements thereto to which a Holder of
the Registrable Securities shall reasonably object.

     

    (b)           Prepare
and file with the Commission (i) such amendments, including post-effective
amendments, to the Registration Statement and the Prospectus used in connection
therewith 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 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; (iii) respond as promptly as
reasonably possible, and in any event within 20 business days, to any comments
received from the Commission with respect to the Registration Statement or any
amendment thereto and as promptly as reasonably possible provide the Holders
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

     

    
      
         

      

      
        Exhibit
10.2        Page 3

        
          

        

      

      
         

      

    

    Securities
Act and the Securities Exchange Act of 1934 (“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 as promptly as reasonably
possible, and (if requested by any such person) confirm such notice in writing
no later than three business days thereafter, of any of the following events:
(i) the Commission notifies the Company whether there will be a “review” of any
Registration Statement; (ii) the Commission comments in writing on any
Registration Statement (in which case the Company shall deliver to each Holder a
copy of such comments and of all written responses thereto); (iii) any
Registration Statement or any post-effective amendment is declared effective;
(iv) the Commission or any other Federal or state governmental authority
requests any amendment or supplement to a Registration Statement or Prospectus
or requests additional information related thereto; (v) the Commission issues
any stop order suspending the effectiveness of any Registration Statement or
initiates any proceedings for that purpose; (vi) the Company receives notice of
any suspension of the qualification or exemption from qualification of any
Registrable Securities for sale in any jurisdiction, or the initiation or threat
of any proceeding for such purpose; or (vii) the financial statements included
in any Registration Statement become ineligible for inclusion therein or any
statement made in any Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference is untrue in any
material respect or any revision to a Registration Statement, Prospectus or
other document is required so that 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 light of the circumstances under
which they were made, not misleading.

     

    (d)           Use
its best efforts to avoid the issuance of or, if issued, obtain the withdrawal
of (i) any order suspending the effectiveness of any 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)           Furnish
to each Holder, 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.

     

    (f)           Promptly
deliver to each Holder, 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.  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.

     

    
      
         

      

      
        Exhibit
10.2        Page 4

        
          

        

      

      
         

      

    

    (g)           (i)
In the time and manner required by with respect to any market on which the
Common Stock is or will be traded (the “Trading Market”), if
at all, prepare and file with such Trading Market an additional shares listing
application covering all of the Registrable Securities; (ii) take all steps
necessary to cause such Registrable Securities to be listed on each Trading
Market as soon as reasonably practicable thereafter; (iii) to the extent
available to the Company, provide to the Holders evidence of such listing; and
(iv) maintain the listing of such Registrable Securities on each such Trading
Market.

     

    (h)           Prior
to any public offering of Registrable Securities, register or qualify or
cooperate with the selling Holders 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 do any and all other
acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Registrable Securities covered by a Registration
Statement.

     

    (i)           Cooperate
with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a transferee
pursuant to a Registration Statement, which certificates shall be free, to the
extent permitted by the Purchase Agreement, of all restrictive legends, and to
enable such Registrable Securities to be in such denominations and registered in
such names as any such Holders may request.

     

    (j)           Upon
the occurrence of any event described in Section
3(c)(v), 3(c)(vi) or 3(c)(vii), as
promptly as reasonably 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 light of the circumstances under which they were made, not
misleading.

     

    (k)           Cooperate
with any due diligence investigation undertaken by the Holders in connection
with the sale of Registrable Securities, including without limitation by making
available any documents and information; provided that the Company will not
deliver or make available to any Holder material, nonpublic information unless
such Holder has entered into an appropriate confidentiality agreement with
respect to such information.  The refusal by the Company to deliver
any material, nonpublic information prior to the execution by such Holder of an
appropriate confidentiality agreement shall not be deemed to be a breach of this
Section 3(k).

     

    (l)           Comply
with all applicable rules and regulations of the Commission.

     

    (m)             If,
after the execution of this Agreement, a Holder believes, after consultation
with its legal counsel, that it could reasonably be deemed to be an underwriter
of Registrable Securities, at the request of any Holder, the Company shall
furnish to such Holder, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as a

     

    
      
         

      

      
        Exhibit
10.2        Page 5

        
          

        

      

      
         

      

    

    Holder
may reasonably request (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily
given by independent certified public accountants to underwriters in an
underwritten public offering, and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in
form, scope and substance as is customarily given in an underwritten public
offering, addressed to the Buyers.

     

    (n)           If,
after the execution of this Agreement, a Holder believes, after consultation
with its legal counsel, that it could reasonably be deemed to be an underwriter
of Registrable Securities, at the request of any Buyer, the Company shall make
available for inspection by (i) any Holder and (ii) one (1) firm of
accountants or other agents retained by the Buyers (collectively, the “Inspectors”) all
pertinent financial and other records, and pertinent corporate documents and
properties of the Company (collectively, the “Records”), as shall
be reasonably deemed necessary by each Inspector, and cause the Company’s
officers, directors and employees to supply all information which any Inspector
may reasonably request; provided, however, that each Inspector shall agree, and
each Holder hereby agrees, to hold in strict confidence and shall not make any
disclosure (except to a Holder) or use  any Record or other
information which the Company determines in good faith to be confidential, and
of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in
any Registration Statement or is otherwise required under the Securities Act,
(b) the release of such Records is ordered pursuant to a final, non-appealable
subpoena or order from a court or government body of competent jurisdiction, or
(c) the information in such Records has been made generally available to the
public other than by disclosure in violation of this or any other agreement of
which the Inspector and the Holder has knowledge.  Each Holder agrees
that it shall, upon learning that disclosure of such Records is sought in or by
a court or governmental body of competent jurisdiction or through other means,
give prompt notice to the Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, the Records deemed confidential.

     

    4.           Registration
Expenses.  All fees and expenses incident to the performance of
or compliance with this Agreement by the Company shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration
Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (a) all registration and filing fees
(including, without limitation, fees and expenses (i) with respect to filings
required to be made with any Trading Market, and (ii) in compliance with
applicable state securities or Blue Sky laws (including, without limitation,
fees and disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities and determination of
the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as requested by the Holders )), (b) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses requested by the Holders),
(c) messenger, telephone and delivery expenses, and (d) fees and expenses of all
other persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement.  Such fees and expenses
shall not include underwriting discounts or sales commissions or brokerage
fees.

     

    5.           Indemnification

     

    
      
         

      

      
        Exhibit
10.2  v      Page 6

        
          

        

      

      
         

      

    

    (a)           Indemnification by the
Company.  The Company shall indemnify and hold harmless each
Holder, the officers, directors, partners, members, agents, brokers (including
brokers who offer and sell Registrable Securities as principal), 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, partners, members, agents and
employees of each such controlling person, to the fullest extent permitted by
applicable law, from and against any and all against all losses, claims,
damages, liabilities and expenses (including reasonable attorney's fees and
disbursements) (such losses, claims, damages, liabilities and expenses, “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 light of the circumstances under which they were made)
not misleading, except to the extent that (i) such untrue statements or
omissions are based upon information regarding such Holder furnished in writing
to the Company by such Holder for use therein, or to the extent that such
information relates to such Holder or such Holder’s proposed or actual method of
distribution of Registrable Securities and was provided for use in the
Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto or (ii) in the case of an occurrence of an event
of the type specified in Section
3(c)(v)-(vii), the use by such Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of
the Advice contemplated in Section 7(e) as
well.

     

    (b)           Indemnification by
Holders.  In connection with the Registration Statement, each
Holder will furnish to the Company in writing such information and affidavits as
the Company reasonably requests in connection with any Registration Statement or
Prospectus and 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), and the directors, officers, agents or
employees of such controlling persons, to the fullest extent permitted by
applicable law, from and against all Losses arising solely out of any untrue
statement of a material fact contained in any Registration Statement, any
Prospectus, or any form of prospectus, or in any amendment or supplement
thereto, or arising solely out of any omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading to the
extent that such untrue statement or omission is contained in any information so
furnished by such Holder to the Company for inclusion in such Registration
Statement or such Prospectus.  The Company shall also be entitled to
receive indemnities from underwriters, selling brokers, dealer--managers and
similar securities industry professionals participating in the distribution, to
the same extent as provided above with respect to information so furnished in
writing by such person for the inclusion in any Prospectus or Registration
Statement.

     

    (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 shall promptly notify the person from whom indemnity is
sought (the “Indemnifying Party”)
in writing, and the Indemnifying Party shall assume the defense
thereof,

     

    
      
         

      

      
        Exhibit
10.2        Page 7

        
          

        

      

      
         

      

    

    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:  (i) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (ii) 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 (iii) 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 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.  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.

     

    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 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 (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
fault 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

    
      
         

      

      
        Exhibit
10.2        Page 8

        
          

        

      

      
         

      

    

    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 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.

     

    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.  Notwithstanding the provisions of this Section 5(d), no
Holder shall be required to contribute, in the aggregate, any amount in excess
of the amount by which the proceeds actually received by such Holder from the
sale of the Registrable Securities subject to the proceeding exceeds the amount
of any damages that such Holder 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.

     

    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.

     

    6.           Reports Under the Exchange
Act.  With a view to making available to the Holders the
benefits of Rule 144 promulgated under the Securities Act or any similar rule or
regulation of the Commission that may at any time permit the Holders to sell
securities of the Company to the public without registration (“Rule 144”) the
Company agrees to:

     

    (a)           make
and keep public information available, as those terms are understood and defined
in Rule 144;

     

    (b)             file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act so long as the Company
remains subject to such requirements and the filing of such reports and other
documents as are  required by the applicable provisions of Rule 144;
and

     

    (c)             furnish
to each Holder so long as such Buyer owns Registrable Securities, promptly upon
request, (i) a written statement by the Company that it has complied with the
reporting requirements of Rule 144, the Securities Act and the Exchange Act,
(ii) a copy of the most recent annual or quarterly report of the Company and
such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Holders to sell such
securities pursuant to Rule 144 without registration.

     

    
      
         

      

      
        Exhibit
10.2         Page 9

        
          

        

      

      
         

      

    

    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.

     

    (b)           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
at least a majority of the then outstanding Registrable
Securities.  Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of at least a
majority of the Registrable Securities to which such waiver or consent relates;
provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding
sentence.

     

    (c)           No Inconsistent
Agreements.  Neither the Company nor any of its subsidiaries
has entered, as of the date hereof, 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 would have the effect of materially
impairing the rights granted to any Holder pursuant to this Agreement or
otherwise conflicts with the provisions hereof.  Except as and to the
extent specified in the applicable schedule to the Purchase Agreement, neither
the Company nor any Subsidiary has previously entered into  any
agreement granting any registration rights with respect to any of its securities
to any person that have not been satisfied in full.

     

    (d)           Compliance.  Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to the Registration Statement.

     

    (e)           Discontinued
Disposition.  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 Sections 3(c)(v),
3(c)(vi), or
3(c)(vii), 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(k), or until it is advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus may be 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.  The Company may provide appropriate stop
orders to enforce the provisions of this paragraph.

     

    
      
         

      

      
        Exhibit
10.2        Page 10

        
          

        

      

      
         

      

    

    (f)           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 earliest of (a) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this
Section prior to 5:30 p.m. (Denver time) on a business day, (b) the next
business day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified in this
Agreement on a day that is not a business day or later than 5:30 p.m. (Denver
time) and earlier than 11:59 p.m. (Denver time) on any business day, (c) the
business day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the party to
whom such notice is required to be given.  The address for such
notices and communications shall be as set forth in the Purchase
Agreement.

     

    (g)           Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and
shall inure to the benefit of each Holder.  The Company may not assign
its rights or obligations hereunder without the prior written consent of each
Holder.  Each Holder may assign its rights and obligations hereunder
in the manner and to the extent permitted under the Purchase
Agreement.

     

    (h)           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.

     

    (i)           Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Colorado, without regard to
conflicts of laws provisions.

     

    (j)           Cumulative
Remedies.  The remedies provided herein are cumulative and not
exclusive of any remedies provided by law.

     

    (k)           Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
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.

     

    (l)           Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

     

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

     

    
      
         

      

      
        Exhibit
10.2        Page 11

        
          

        

      

      
         

      

    

     

     

    IN WITNESS WHEREOF, each of the parties
has caused this Agreement to be executed
on its behalf by its representative thereunto duly authorized, all as
of the
date first above written.

    

    MONUMENT
RESOURCES, INC.

    

    

    By: 
 /s/ A.G.
Foust

          
A.G. Foust, President

    

    

    MNB
ENERGY, LLC

    

    

    By:  
/s/ Matt
Miles

            Matt
Miles, Manager

    

    A.G.
FOUST

    

    

       /s/ A. G.
Foust

    A.G.
Foust, Individually

     

    Exhibit 10.2        Page
12

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