Document:

EXHIBIT 10.14

                           PLEDGE AND ESCROW AGREEMENT

         PLEDGE  AND  ESCROW  AGREEMENT  (the  "AGREEMENT")  made by each of the
undersigned (each a "PLEDGOR",  and collectively,  the "PLEDGORS"),  in favor of
CORNELL  CAPITAL  PARTNERS,  LP, in its  capacity as  collateral  agent (in such
capacity,  the "COLLATERAL  AGENT") for the "Buyers" (as defined below) party to
the  Securities  Purchase  Agreement,  of even date  herewith  (the  "SECURITIES
PURCHASE AGREEMENT").

                                    RECITALS:

         WHEREAS,  Radial Energy,  Inc., a Delaware corporation (the "COMPANY"),
and each party  listed as a "Buyer" on the Schedule of Buyers  attached  thereto
(each a "BUYER",  and collectively,  the "BUYERS") are parties to the Securities
Purchase  Agreement,  pursuant to which the Company  shall issue and sell to the
Buyers,  as provided in the Securities  Purchase  Agreement and the Buyers shall
purchase secured convertible  debentures (the "CONVERTIBLE  DEBENTURES"),  which
shall be convertible into shares of the Company's common stock, par value $0.001
per share (the "COMMON STOCK") (as converted, the "CONVERSION SHARES");

         WHEREAS,  it is a  condition  precedent  to the Buyers  purchasing  the
Convertible  Debentures that the Pledgors  execute and deliver to the Collateral
Agent a pledge  agreement  securing all of the  obligations of the Company under
the  Securities   Purchase  Agreement,   the  Convertible   Debentures  and  the
Transaction  Documents (as defined in the  Securities  Purchase  Agreement,  the
"TRANSACTION DOCUMENTS");

         WHEREAS,  each Pledgor has determined that the execution,  delivery and
performance of this Agreement directly benefits, and is in the best interest of,
such Pledgor; and

         WHEREAS,  the  parties  to  this  Agreement  desire  to  appoint  DAVID
GONZALEZ,  ESQ., as escrow agent ("ESCROW  AGENT") to hold in escrow the Pledged
Shares  (as  defined  below)  pursuant  to the  terms  and  conditions  of  this
Agreement.

         NOW, THEREFORE,  in consideration of the mutual covenants,  agreements,
warranties,  and  representations  herein  contained,  and for  other  good  and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

                              TERMS AND CONDITIONS

1.  OBLIGATIONS  SECURED.  The security  interest  created hereby in the Pledged
Shares  constitutes  continuing  collateral  security for all obligations of the
Company now  existing or  hereinafter  incurred to the Buyers,  whether  oral or
written  and whether  arising  before,  on or after the date  hereof  including,
without   limitation   of   the   following   obligations   (collectively,   the
"Obligations"):

         (a) for so long as the  Convertible  Debentures  are  outstanding,  the
payment by the  Company,  as and when due and  payable (by  scheduled  maturity,
acceleration, demand or otherwise), of all amounts from time to time owing by it

<PAGE>

in respect of the Securities Purchase Agreement,  the Convertible Debentures and
the other Transaction Documents; and

         (b) for so long as the Convertible Debentures are outstanding,  the due
performance and observance by the Company of all of its other  obligations  from
time to time existing in respect of any of the Transaction Documents,  including
without limitation,  the Company's obligations with respect to any conversion or
redemption rights of the Secured Party under the Convertible Debentures.

2. PLEDGE AND  TRANSFER OF PLEDGED  SHARES.  Each Pledgor  hereby  grants to the
Collateral  Agent an irrevocable,  first priority  security  interest in all the
securities set forth next to such  Pledgor's name on Schedule I attached  hereto
(the "PLEDGED SHARES") as security for the Obligations.  Simultaneously with the
execution of this Agreement, each Pledgor shall deliver to the Escrow Agent, and
the Escrow Agent shall hold in escrow  pursuant to the terms of this  Agreement,
stock  certificates  made out in favor of the Pledgor  representing  the Pledged
Shares,  together with duly executed stock powers or other appropriate  transfer
documents with  medallion bank  guarantees and executed in blank by each Pledgor
(the "TRANSFER  DOCUMENTS"),  and such stock certificates and Transfer Documents
shall be held by the  Escrow  Agent  until the  satisfaction  in full of all the
Obligations.

3. RIGHTS RELATING TO PLEDGED SHARES. Upon the occurrence of an Event of Default
(as defined herein),  the Collateral Agent shall be entitled to vote the Pledged
Shares,  receive dividends and other distributions  thereon, and enjoy all other
rights and privileges  incident to the ownership of the number of Pledged Shares
actually released from escrow in accordance with Section 6.1 hereof on behalf of
the Buyers.

4. RELEASE OF PLEDGED SHARES FROM PLEDGE.

         a. Upon the  satisfaction  in full of all the  Obligations  the parties
hereto shall notify the Escrow  Agent to such effect in writing.  Promptly  upon
receipt of such  written  notice,  the Escrow Agent shall return to each Pledgor
the Transfer  Documents and the  certificates  representing  the Pledged  Shares
(collectively  the  "PLEDGED  MATERIALS"),  whereupon  any  and  all  rights  of
Collateral Agent in the Pledged Shares shall be terminated.

         b.  Upon  the   satisfaction  of  the  following   conditions  (i)  the
registration statement with respect to the resale of the Common Stock underlying
the Convertible  Debentures shall have been declared effective by the Securities
and  Exchange  Commission,  (ii) the Common Stock shall be traded on a Principal
Market (as defined in the Convertible Debentures),  and (iv) no Event of Default
shall have occurred, the security interest created hereunder solely with respect
to one half of the  Pledged  Shares  pledged  hereunder  by each  Pledgor  shall
terminate. Promptly upon the satisfaction of such conditions, the parties hereto
shall notify the Escrow Agent to such effect in writing.  Promptly  upon receipt
of such  written  notice,  the Escrow  Agent  shall  return to each  Pledgor the
Pledged Materials with respect to one half of each Pledgors' Pledged Shares, and
all  rights  of  Collateral  Agent  in such  Pledged  Shares  returned  shall be
terminated.

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<PAGE>

5. EVENT OF  DEFAULT.  An "EVENT OF  DEFAULT"  shall be deemed to have  occurred
under this Agreement upon an Event of Default under the Convertible Debentures.

6. REMEDIES.

         a. Upon and anytime after the  occurrence  of an Event of Default,  the
Collateral  Agent shall have the right acquire the Pledged  Shares in accordance
with the following  procedure:  (a) the Collateral  Agent shall provide  written
notice of such Event of Default (the "DEFAULT NOTICE") to the Escrow Agent, with
a copy to the  Pledgors;  (b) in a Default  Notice the  Collateral  Agent  shall
specify  the  number of  Pledged  Shares to be issued to the  Collateral  Agent,
PROVIDED  HOWEVER,  that neither the Collateral  Agent,  nor any Buyer shall not
have the right to acquire  such number of Pledged  Shares  which would cause the
Collateral  Agent or such Buyer,  together with its affiliates,  to beneficially
own in excess of 4.99% of the  outstanding  capital of the  Company  (unless the
Collateral  Agent or such Buyer  waives such  limitation  by  providing 65 days'
advance  written  notice);  and (c) as soon as  practicable  after  receipt of a
Default Notice,  the Escrow Agent shall deliver the specified  number of Pledged
Shares along with the applicable  Transfer  Documents to the Company's  Transfer
Agent with  instructions to issue such Pledged Shares to the Collateral Agent in
accordance  with  the  Irrevocable  Transfer  Agent  Instructions  of even  date
herewith.

         b. Upon receipt of the Pledged Shares issued to a the Collateral Agent,
the Collateral  Agent shall have the right to (i) sell the Pledged Shares and to
apply  the  proceeds  of such  sales,  net of any  selling  commissions,  to the
Obligations  owed to the Buyers by the Company under the Transaction  Documents,
including, without limitation,  outstanding principal, interest, legal fees, and
any other amounts owed to the Buyers, and exercise all other rights and (ii) any
and all  remedies  of a secured  party with  respect to such  property as may be
available  under the  Uniform  Commercial  Code as in effect in the State of New
Jersey.  To the  extent  that  the  net  proceeds  received  by the  Buyers  are
insufficient to satisfy the Obligations in full, the Buyers shall be entitled to
a deficiency judgment against each Pledgor for such amount. the Collateral Agent
shall have the  absolute  right to sell or dispose of the Pledged  Shares in any
manner it sees fit and shall have no liability to any Pledgor or any other party
for selling or disposing of such Pledged  Shares even if other  methods of sales
or  dispositions  would or allegedly  would result in greater  proceeds than the
method actually used.  Each Pledgor shall remain liable for shortfalls,  if any,
that may exist after the Collateral Agent has exhausted all remedies  hereunder.
The  Collateral  Agent shall return any Pledged Shares issued to it and instruct
the Escrow Agent to return any Pledged  Shares it is holding in escrow after the
full satisfaction of the Obligations.

         c. Each right, power and remedy of the Collateral Agent provided for in
this  Agreement  or any  other  Transaction  Document  shall be  cumulative  and
concurrent and shall be in addition to every other such right,  power or remedy.
The exercise or beginning of the exercise by the Collateral  Agent of any one or
more of the rights,  powers or remedies  provided  for in this  Agreement or any
other Transaction  Document or now or hereafter  existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise by
the Collateral Agent or any Buyer of all such other rights,  powers or remedies,
and no  failure  or delay on the part of the  Collateral  Agent or any  Buyer to

                                       3

<PAGE>

exercise any such right,  power or remedy shall operate as a waiver thereof.  No
notice to or demand on any Pledgor in any case shall  entitle any Pledgor to any
other  or  further  notice  or  demand  in  similar  or other  circumstances  or
constitute  a waiver of any of the rights of the  Collateral  Agent to any other
further action in any  circumstances  without  demand or notice.  The Collateral
Agent  shall have the full power to enforce or to assign or  contract  is rights
under this Agreement to a third party.

7. REPRESENTATIONS, WARRANTIES AND COVENANTS.

         a. Each Pledgor represents, warrants and covenants that:

             (i) Pledgor is, and at the time when pledged hereunder will be, the
legal,  beneficial  and record  owner of, and has (and will have) good and valid
title to, all  Pledged  Shares  pledged by it  hereunder,  subject to no pledge,
lien,  mortgage,  hypothecation,  security  interest,  charge,  option  or other
encumbrance whatsoever;

             (ii)  Pledgor has full power,  authority  and legal right to pledge
all the Pledged Shares pledged pursuant to this Agreement; and

             (iii) all the Pledged Shares have been duly and validly issued, are
fully paid and  non-assessable  and are  subject to no  options to  purchase  or
similar rights.

         b. Each Pledgor  covenants and agrees to take all  reasonable  steps to
defend the Collateral  Agent's right,  title and security interest in and to the
Pledged  Shares and the proceeds  thereof  against the claims and demands of all
persons  whomsoever (other than the Collateral Agent and the Escrow Agent);  and
each Pledgor  covenants  and agrees that it will have like title to and right to
pledge any other property at any time hereafter  pledged to the Collateral Agent
as collateral  hereunder and will likewise take all  reasonable  steps to defend
the right thereto and security interest therein of the Collateral Agent.

         c. Each  Pledgor  covenants  and agrees to take no action  which  would
violate or be inconsistent with any of the terms of any Transaction Document, or
which  would have the effect of  impairing  the  position  or  interests  of the
Collateral Agent under any Transaction Document.

         d. Each  Pledgor  represents,  warrants and  covenants  that (i) unless
otherwise  indicated  on  Schedule  II  attached  hereto,  Pledgor  has been the
beneficial  owner of the  Pledged  Shares  for a period of not less than two (2)
years  as  computed  in  accordance  with  Rule  144(d)  promulgated  under  the
Securities  Act of 1933,  as  amended,  and (ii)  this  Agreement  is made  with
recourse. Upon an Event of Default, the Collateral Agent shall be deemed to have
acquired  the  Pledged  Shares on the date they were  acquired  by the  Pledgor.
Unless otherwise  indicated on the Schedule II attached hereto,  each Pledgor is
an  "affiliate"  of the  Company,  as  such  term  is  defined  in  Rule  144(a)
promulgated under the Securities Act of 1933, as amended.

8. CONCERNING THE ESCROW AGENT.

         a. The  Escrow  Agent  undertakes  to perform  only such  duties as are
expressly set forth herein and no implied  duties or  obligations  shall be read
into this Agreement against the Escrow Agent.

                                       4

<PAGE>

         b. The Escrow Agent may act in reliance  upon any writing or instrument
or  signature  which it, in good faith,  believes to be genuine,  may assume the
validity and accuracy of any statement or assertion  contained in such a writing
or  instrument,  and may assume that any person  purporting to give any writing,
notice, advice or instructions in connection with the provisions hereof has been
duly authorized to do so. The Escrow Agent shall not be liable in any manner for
the sufficiency or correctness as to form, manner, and execution, or validity of
any instrument deposited in this escrow, nor as to the identity,  authority,  or
right of any  person  executing  the same;  and its  duties  hereunder  shall be
limited to the safekeeping of such certificates,  monies,  instruments, or other
document  received by it as such escrow holder,  and for the  disposition of the
same in accordance with the written instruments accepted by it in the escrow.

         c. The Collateral  Agent and the Pledgors  hereby agree,  to defend and
indemnify  the  Escrow  Agent  and hold it  harmless  from  any and all  claims,
liabilities,  losses, actions, suits, or proceedings at law or in equity, or any
other  expenses,  fees, or charges of any character or nature which it may incur
or with which it may be threatened by reason of its acting as Escrow Agent under
this  Agreement;  and in  connection  therewith,  to indemnify  the Escrow Agent
against any and all expenses,  including  attorneys' fees and costs of defending
any action,  suit, or proceeding or resisting any claim (and any costs  incurred
by the Escrow Agent  pursuant to Sections  6.4 or 6.5 hereof).  The Escrow Agent
shall  be  vested  with  a  lien  on  all  property  deposited  hereunder,   for
indemnification   of  attorneys'  fees  and  court  costs  regarding  any  suit,
proceeding  or  otherwise,  or any  other  expenses,  fees,  or  charges  of any
character  or nature,  which may be  incurred  by the Escrow  Agent by reason of
disputes   arising  between  the  makers  of  this  escrow  as  to  the  correct
interpretation  of this  Agreement  and  instructions  given to the Escrow Agent
hereunder,  or otherwise,  with the right of the Escrow Agent, regardless of the
instructions  aforesaid,  to hold said property until and unless said additional
expenses,  fees,  and charges shall be fully paid. Any fees and costs charged by
the Escrow Agent for serving hereunder shall be paid by the Pledgors.

         d.  If  any  of  the  parties  shall  be  in  disagreement   about  the
interpretation  of this Agreement,  or about the rights and obligations,  or the
propriety of any action  contemplated by the Escrow Agent hereunder,  the Escrow
Agent may, at its sole discretion  deposit the Pledged  Materials with the Clerk
of the United  States  District  Court of New  Jersey,  sitting  in Newark,  New
Jersey,  and, upon notifying all parties concerned of such action, all liability
on the part of the Escrow  Agent  shall fully  cease and  terminate.  The Escrow
Agent shall be indemnified by the Pledgors, the Company and the Collateral Agent
for all costs,  including  reasonable  attorneys'  fees in  connection  with the
aforesaid  proceeding,  and shall be fully protected in suspending all or a part
of its  activities  under  this  Agreement  until  a  final  decision  or  other
settlement in the proceeding is received.

         e. The Escrow Agent may consult with counsel of its own choice (and the
costs of such counsel shall be paid by the Pledgors, the Company, and Collateral
Agent) and shall have full and complete  authorization  and  protection  for any
action taken or suffered by it hereunder  in good faith and in  accordance  with
the  opinion  of such  counsel.  The  Escrow  Agent  shall not be liable for any
mistakes of fact or error of  judgment,  or for any actions or  omissions of any
kind, unless caused by its willful misconduct or gross negligence.

                                       5

<PAGE>

         f. The Escrow  Agent may resign upon ten (10) days'  written  notice to
the parties in this  Agreement.  If a successor  Escrow  Agent is not  appointed
within  this ten (10) day  period,  the  Escrow  Agent may  petition  a court of
competent jurisdiction to name a successor.

9. CONFLICT WAIVER.  The Pledgors hereby  acknowledges  that the Escrow Agent is
general counsel to the Collateral Agent, a partner in the general partner of the
Collateral  Agent,  and counsel to the Collateral  Agent in connection  with the
transactions  contemplated and referred herein.  The Pledgors agrees that in the
event of any dispute  arising in connection  with this Agreement or otherwise in
connection with any transaction or agreement  contemplated  and referred herein,
the Escrow  Agent shall be permitted  to continue to  represent  the  Collateral
Agent and the Pledgors will not seek to  disqualify  such counsel and waives any
objection  Pledgors  might have with  respect to the Escrow  Agent acting as the
Escrow Agent pursuant to this Agreement.

10. NOTICES. Unless otherwise provided herein, all demands,  notices,  consents,
service of process,  requests  and other  communications  hereunder  shall be in
writing and shall be  delivered in person or by overnight  courier  service,  or
mailed by certified mail, return receipt requested, addressed:

If to the Company, to:                         Radial Energy, Inc.
                                               1313 East Maple Street, Suite 223
                                               Bellingham, WA  98225
                                               Attn:  Chief Financial Officer
                                               Telephone:        (360) 685-4240

With a copy to:                                Greenberg Traurig, LLP
                                               650 Town Center Drive, Suite 1700
                                               Costa Mesa, CA  92626
                                               Attn:  Raymond Lee, Esq.
                                               Telephone:        (714) 708-6510

If to the Collateral Agent:                    Cornell Capital Partners LP
                                               101 Hudson Street, Suite 3700
                                               Jersey City, NJ 07302
                                               Attention:        Mark A. Angelo
                                               Telephone:        (201) 985-8300
                                               Facsimile:        (201) 985-8744

With copy to:                                  Cornell Capital Partners, LP
                                               101 Hudson Street, Suite 3700
                                               Jersey City, NJ 07302
                                               Attention:       Troy Rillo, Esq.
                                               Telephone:       (201) 985-8300
                                               Facsimile:       (201) 985-1964

If to the Pledgors, to:                        To the addresses provided on the
                                               signature pages attached hereto

                                       6

<PAGE>

Any such notice  shall be  effective  (a) when  delivered,  if delivered by hand
delivery or overnight courier service, or (b) five (5) days after deposit in the
United States mail, as applicable.

11. BINDING EFFECT. All of the covenants and obligations  contained herein shall
be binding upon and shall inure to the benefit of the respective parties,  their
successors and assigns.

12. GOVERNING LAW; VENUE; SERVICE OF PROCESS.  The validity,  interpretation and
performance of this Agreement shall be determined in accordance with the laws of
the State of New Jersey  applicable to contracts made and to be performed wholly
within that state  except to the extent that  Federal law  applies.  The parties
hereto agree that any  disputes,  claims,  disagreements,  lawsuits,  actions or
controversies  of any type or nature  whatsoever  that,  directly or indirectly,
arise from or relate to this Agreement,  including,  without limitation,  claims
relating to the  inducement,  construction,  performance  or termination of this
Agreement,  shall be  brought  in the state  superior  courts  located in Hudson
County, New Jersey or Federal district courts located in Newark, New Jersey, and
the parties  hereto  agree not to challenge  the  selection of that venue in any
such proceeding for any reason,  including,  without limitation,  on the grounds
that such venue is an inconvenient  forum. The parties hereto specifically agree
that  service  of process  may be made,  and such  service  of process  shall be
effective if made, pursuant to Section 8 hereto.

13.  ENFORCEMENT  COSTS. If any legal action or other  proceeding is brought for
the enforcement of this  Agreement,  or because of an alleged  dispute,  breach,
default  or   misrepresentation  in  connection  with  any  provisions  of  this
Agreement,  the  successful or prevailing  party or parties shall be entitled to
recover  reasonable  attorneys'  fees,  court costs and all expenses even if not
taxable as court costs (including,  without limitation, all such fees, costs and
expenses  incident  to  appeals),  incurred  in that  action or  proceeding,  in
addition to any other relief to which such party or parties may be entitled.

14. REMEDIES  CUMULATIVE.  No remedy herein conferred upon any party is intended
to be  exclusive  of any other  remedy,  and each and every such remedy shall be
cumulative and shall be in addition to every other remedy given hereunder or now
or hereafter existing at law, in equity, by statute, or otherwise.  No single or
partial  exercise  by any party of any right,  power or remedy  hereunder  shall
preclude any other or further exercise thereof.

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

16. NO  PENALTIES.  No provision of this  Agreement  is to be  interpreted  as a
penalty upon any party to this Agreement.

17. JURY TRIAL.  EACH OF THE COLLATERAL AGENT AND THE PLEDGOR HEREBY  KNOWINGLY,
VOLUNTARILY AND  INTENTIONALLY  WAIVES THE RIGHT WHICH IT MAY HAVE TO A TRIAL BY
JURY OF ANY CLAIM,  DEMAND,  ACTION OR CAUSE OF ACTION BASED HEREON,  OR ARISING
OUT OF, UNDER OR IN ANY WAY CONNECTED WITH THE DEALINGS BETWEEN COLLATERAL AGENT
AND  PLEDGOR,  THIS  PLEDGE AND ESCROW  AGREEMENT  OR ANY  DOCUMENT  EXECUTED IN

                                       7

<PAGE>

CONNECTION  HEREWITH,  OR ANY COURSE OF CONDUCT,  COURSE OF DEALING,  STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR THERETO IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY
OR OTHERWISE.

                   [REMAINDER OF PAGE INTENTIALLY LEFT BLANK]

                                       8

<PAGE>

         IN WITNESS  WHEREOF,  each  Pledgor  has caused  this Pledge and Escrow
Agreement to be executed by its respective  duly authorized  officer,  as of the
date first above written.

                            By: /s/ GREGORY LEIGH LYONS
                                _______________________
                            Name: Gregory Leigh Lyons

                            Address:  1313 E. Maple Street, Suite 223
                                      Bellingham, WA  98225

FOR VALUE RECEIVED, the Pledgor hereby unconditionally and absolutely guarantees
the  Company's  Obligations  (as defined  above).  This  Agreement  is made with
recourse.

         BY: /s/ GREGORY LEIGH LYONS
             _______________________
         NAME:   Gregory Leigh Lyons

                                       9

<PAGE>

         IN WITNESS  WHEREOF,  each  Pledgor  has caused  this Pledge and Escrow
Agreement to be executed by its respective  duly authorized  officer,  as of the
date first above written.

                            By: /s/ OMAR MICHAEL HAYES
                                ______________________
                            Name: Omar Michael Hayes

                            Address:

FOR VALUE RECEIVED, the Pledgor hereby unconditionally and absolutely guarantees
the  Company's  Obligations  (as defined  above).  This  Agreement  is made with
recourse.

         BY: /s/ OMAR MICHAEL HAYES
             ______________________
         NAME:  Omar Michael Hayes

                                       10

<PAGE>

         IN WITNESS  WHEREOF,  each  Pledgor  has caused  this Pledge and Escrow
Agreement to be executed by its respective  duly authorized  officer,  as of the
date first above written.

                           GUILDHALL LIMITED

                           By: /s/ RICHARD SMITH
                               _________________________________________
                           Name:    Richard Smith
                           Title: Authorized Signatory

                           Address: 35 Barrack Road
                                    Belize City, Belize

FOR VALUE RECEIVED, the Pledgor hereby unconditionally and absolutely guarantees
the  Company's  Obligations  (as defined  above).  This  Agreement  is made with
recourse.

         GUILDHALL LIMITED

         BY: /s/ RICHARD SMITH
             ______________________
         NAME:  Richard Smith

                                       11

<PAGE>

         IN WITNESS  WHEREOF,  each  Pledgor  has caused  this Pledge and Escrow
Agreement to be executed by its respective  duly authorized  officer,  as of the
date first above written.

                           LLORIA CORPORATION LIMITED

                           By: /s/ ROBERT SEELEY
                               _____________________________
                           Name:    Robert Seeley
                           Title: Authorized Signatory

                           Address:     Suite 906 Ocean Centre
                                        Harbour City
                                        5 Canton Road, TST
                                        Kowloon, Hong Kong

FOR VALUE RECEIVED, the Pledgor hereby unconditionally and absolutely guarantees
the  Company's  Obligations  (as defined  above).  This  Agreement  is made with
recourse.

         LLORIA CORPORATION LIMITED

         BY: /s/ ROBERT SEELEY
             ___________________
         NAME:  Robert Seeley

                                       12

<PAGE>

         IN WITNESS  WHEREOF,  each  Pledgor  has caused  this Pledge and Escrow
Agreement to be executed by its respective  duly authorized  officer,  as of the
date first above written.

                           PROPHETIC LIMITED

                           By: /s/ CHRIS SMITH
                               ___________________________
                           Name:    Chris Smith
                           Title: Authorized Signatory

                           Address: Suite 100 The Studio
                                    St.   Nicholas
                                    Close Elstree,
                                    Hertfordshire
                                    U.K. WD6 3EW

FOR VALUE RECEIVED, the Pledgor hereby unconditionally and absolutely guarantees
the  Company's  Obligations  (as defined  above).  This  Agreement  is made with
recourse.

         PROPHETIC LIMITED

         BY: /s/ CHRIS SMITH
         __________________________
         NAME:  Chris Smith

                                       13

<PAGE>

<TABLE>
<CAPTION>

                                   SCHEDULE I

                                 PLEDGED SHARES

        ___________________________________________________________________________________
        PLEDGOR                     PLEDGED SHARES
        ___________________________________________________________________________________
<S>                                 <C>

        Gregory Leigh Lyons         2,672,000 Shares of Common Stock of Radial Energy, Inc.
                                    (certificate numbers:  _______, ________)

        ___________________________________________________________________________________
        Omar Michael Hayes          1,500,000 Shares of Common Stock of Radial Energy, Inc.
                                    (certificate numbers:  _______, ________)

        ___________________________________________________________________________________
        Guildhall Ltd.              1,160,000 Shares of Common Stock of Radial Energy, Inc.
                                    (certificate numbers:  _______, ________)

        ___________________________________________________________________________________
        Lloria Corporation Limited  1,100,000 Shares of Common Stock of Radial Energy, Inc.
                                    (certificate numbers:  _______, ________)

        ___________________________________________________________________________________
        Prophetic Limited           1,240,000 Shares of Common Stock of Radial Energy, Inc.
                                    (certificate numbers:  _______, ________)

        ___________________________________________________________________________________

</TABLE>

                                       14

<PAGE>

                                   SCHEDULE II

                                   EXCEPTIONS

                                       15EXHIBIT 10.15

                     INVESTOR REGISTRATION RIGHTS AGREEMENT

         THIS  REGISTRATION  RIGHTS  AGREEMENT (this  "AGREEMENT"),  dated as of
October 2, 2006, by and among RADIAL  ENERGY,  INC., a Nevada  corporation  (the
"COMPANY"),  and the undersigned  investors listed on Schedule I attached hereto
(each, an "INVESTOR" and collectively, the "INVESTORS").

         WHEREAS:

         A. In connection  with the Securities  Purchase  Agreement by and among
the parties hereto of even date herewith (the "SECURITIES PURCHASE  AGREEMENT"),
the  Company has agreed,  upon the terms and  subject to the  conditions  of the
Securities  Purchase  Agreement,  to  issue  and sell to the  Investors  secured
convertible debentures (the "CONVERTIBLE DEBENTURES") which shall be convertible
into that number of shares of the Company's  common stock,  par value $0.001 per
share (the "COMMON  STOCK"),  pursuant to the terms of the  Securities  Purchase
Agreement  for  an  aggregate  purchase  price  of up to  Five  Million  Dollars
($5,000,000).  Capitalized  terms not  defined  herein  shall  have the  meaning
ascribed to them in the Securities Purchase Agreement.

         B. To induce  the  Investors  to execute  and  deliver  the  Securities
Purchase  Agreement,  the  Company  has agreed to provide  certain  registration
rights  under  the  Securities  Act of  1933,  as  amended,  and the  rules  and
regulations  thereunder,  or any similar  successor statute  (collectively,  the
"SECURITIES ACT"), and applicable state securities laws.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained  herein  and other  good and  valuable  consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  the Company and the
Investors hereby agree as follows:

              1. DEFINITIONS.

         As used in this Agreement, the following terms shall have the following
meanings:

              (a)  "ALLOWABLE   BLACKOUT  PERIOD"  means  each  Blackout  Period
provided that the Company  promptly (i) notifies the Investors in writing that a
Blackout  Event has occurred  (provided that in each notice the Company will not
disclose  material,  non-public  information  to the  Investors) and the date on
which the Blackout  Period will begin,  and (ii) notify the Investors in writing
of the date on which the  Blackout  Period ends;  and,  provided  further,  that
during any three hundred  sixty five (365) day period such Blackout  Period does
not exceed an  aggregate  of one hundred  twenty (120) days and the first day of
any such  Blackout  Period must be at least  twenty five (25) Trading Days after
the last day of any prior Blackout Period.

              (b)   "BLACKOUT   EVENT"  means  the  happening  of  an  event  or
development  that in the sole, good faith discretion of the Company requires the
amendment or supplement  of the  Registration  Statement or prospectus  included
therein,  including without limitation the filing of a periodic report under the
Securities and Exchange Act of 1934, the happening of an event giving rise to an
Allowable Grace Period, or the happening of any other event as a result of which
the prospectus included in a Registration Statement, as then in effect, includes
an untrue  statement  of a material  fact or omission  to state a material  fact

<PAGE>

required to be stated  therein or necessary to make the statements  therein,  in
light of the circumstances under which they were made, not misleading.

              (c)  "BLACKOUT  PERIOD"  means  the  period  between  the time the
Company  provides  written notice to the Investor of the happening of a Blackout
Event and the  delivery to the  Investors  of a  prospectus  supplement  and, if
applicable, amended registration statement declared effective by the SEC.

              (d) "EFFECTIVE DATE" means the date the Registration  Statement is
first declared effective.

              (e) "PERSON" means a corporation,  a limited liability company, an
association,  a partnership,  an  organization,  a business,  an  individual,  a
governmental or political subdivision thereof or a governmental agency.

              (f)  "REGISTER,"  "REGISTERED,"  and  "REGISTRATION"  refer  to  a
registration   effected  by  preparing  and  filing  one  or  more  Registration
Statements (as defined below) in compliance with the Securities Act and pursuant
to Rule 415  under  the  Securities  Act or any  successor  rule  providing  for
offering  securities  on a continuous  or delayed  basis ("RULE  415"),  and the
declaration or ordering of  effectiveness of such  Registration  Statement(s) by
the United States Securities and Exchange Commission (the "SEC").

              (g)  "REGISTRABLE  SECURITIES"  means the  shares of Common  Stock
issuable to the Investors upon conversion of the Convertible Debentures pursuant
to the Securities  Purchase  Agreement and the Warrant  Shares,  as this term is
defined in the Securities Purchase Agreement.

              (h) "REGISTRATION  STATEMENT" means a registration statement under
the Securities Act which covers the Registrable Securities.

              2. REGISTRATION.

              (a) Subject to the terms and  conditions  of this  Agreement,  the
Company  shall  prepare  and file,  no later than thirty (30) days from the date
hereof (the "SCHEDULED FILING DEADLINE"),  with the SEC a registration statement
on Form S-1 or SB-2 (or, if the Company is then eligible, on Form S-3) under the
Securities  Act (the  "INITIAL  REGISTRATION  STATEMENT")  for the resale by the
Investors of the  Registrable  Securities,  which  includes at least 300% of the
number of shares  underlying the  Convertible  Debentures as of the last trading
date prior to the date filed and 100% of the Warrant  Shares.  The Company shall
cause the  Registration  Statement to remain  effective until the earlier of (a)
two  (2)  years  following  the  Effective  Date,  or (b)  the  date  all of the
Registrable  Securities  have  been  sold by the  Investors  (the  "REGISTRATION
PERIOD").  Prior to the filing of the  Registration  Statement with the SEC, the
Company  shall  furnish  a copy of the  Initial  Registration  Statement  to the
Investors for their review and comment.  The Investors shall furnish comments on
the Initial Registration  Statement to the Company within twenty-four (24) hours
of the receipt thereof from the Company.

              (b)  EFFECTIVENESS  OF THE  INITIAL  REGISTRATION  STATEMENT.  The
Company  shall  use its  best  efforts  (i) to  have  the  Initial  Registration
Statement  declared  effective by the SEC no later than one hundred  fifty (150)

<PAGE>

days from the date  hereof  (the  "SCHEDULED  EFFECTIVE  DEADLINE")  and (ii) to
insure that the Initial Registration  Statement and any subsequent  Registration
Statement remains in effect until the Registration  Period has expired,  subject
to the terms and conditions of this Agreement.

              (c) FAILURE TO FILE OR OBTAIN  EFFECTIVENESS  OF THE  REGISTRATION
STATEMENT. In the event the Registration Statement is not filed by the Scheduled
Filing  Deadline  or is not  declared  effective  by the  SEC on or  before  the
Scheduled  Effective  Date,  or if after  the  Registration  Statement  has been
declared effective by the SEC, sales cannot be made pursuant to the Registration
Statement  beyond any Allowable  Blackout  Period  because the Company failed to
keep the Registration Statement effective or current, then as partial relief for
the damages to any holder of Registrable  Securities by reason of any such delay
in or  reduction  of its ability to sell the  underlying  shares of Common Stock
(which remedy shall not be exclusive of any other remedies at law or in equity),
the Company will pay as  liquidated  damages (the  "LIQUIDATED  DAMAGES") to the
holder, at the holder's option,  either a cash amount or shares of the Company's
Common Stock within three (3) business days,  after demand  therefore,  equal to
one  percent  (1%)  of  the  liquidated  value  of  the  Convertible  Debentures
outstanding  as  Liquidated  Damages for each  thirty (30) day period  after the
Scheduled  Filing  Deadline or the Scheduled  Effective Date as the case may be.
Notwithstanding  anything herein to the contrary,  in no event shall  Liquidated
Damages  exceed twenty  percent (20%) of the  aggregate  Purchase  Price for all
Investors.  Common  Stock  issued  as  Liquidated  Damages  shall  not be deemed
Registrable Securities.

              (d)  LIQUIDATED  DAMAGES.  The  Company  and the  Investor  hereto
acknowledge  and agree that the sums payable under  subsection  2(c) above shall
constitute liquidated damages and not penalties and are in addition to all other
rights of the  Investor,  including  the right to call a  default.  The  parties
further acknowledge that (i) the amount of loss or damages likely to be incurred
is incapable or is difficult to precisely  estimate,  (ii) the amounts specified
in such  subsections  bear a reasonable  relationship to, and are not plainly or
grossly  disproportionate  to,  the  probable  loss  likely  to be  incurred  in
connection   with  any  failure  by  the  Company  to  obtain  or  maintain  the
effectiveness  of a  Registration  Statement,  (iii) one of the  reasons for the
Company  and the  Investor  reaching  an  agreement  as to such  amounts was the
uncertainty and cost of litigation regarding the question of actual damages, and
(iv) the Company and the Investor are  sophisticated  business  parties and have
been  represented by  sophisticated  and able legal counsel and negotiated  this
Agreement at arm's length.

              3. RELATED OBLIGATIONS.

              (a) Subject to any Allowable  Blackout  Period,  the Company shall
keep the  Registration  Statement  effective  pursuant  to Rule 415 at all times
during the Registration  Period,  which  Registration  Statement  (including any
amendments or supplements thereto and prospectuses  contained therein) shall 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
light of the circumstances in which they were made, not misleading.

              (b)  The  Company  shall  prepare  and  file  with  the  SEC  such
amendments   (including   post-effective   amendments)   and  supplements  to  a
Registration   Statement  and  the  prospectus  used  in  connection  with  such

                                       3

<PAGE>

Registration  Statement,  which  prospectus is to be filed  pursuant to Rule 424
promulgated  under  the  Securities  Act,  as  may be  necessary  to  keep  such
Registration  Statement  effective at all times during the Registration  Period,
and,  during such period,  comply with the provisions of the Securities Act with
respect to the disposition of all Registrable  Securities of the Company covered
by such Registration Statement. In the case of (i) amendments and supplements to
a  Registration  Statement  which  are  required  to be filed  pursuant  to this
Agreement  (including  pursuant to this Section 3(b)) by reason of the Company's
filing a report on Form 10-KSB,  Form 10-QSB or Form 8-K or any analogous report
under the Securities  Exchange Act of 1934, as amended (the "EXCHANGE ACT"), the
Company  shall,  if  not  automatically   incorporated  by  reference  into  the
Registration Statement if applicable,  shall file such amendments or supplements
with  the SEC  necessary  to  incorporate  such  report  into  the  Registration
Statement or prospectus within one Trading Day (except as otherwise  provided in
subpart (iii) below) following the day on which the Exchange Act report is filed
which  created  the  requirement  for the  Company  to amend or  supplement  the
Registration  Statement  or  prospectus  (ii) the  filing of any  post-effective
amendment to the  Registration  Statement the Company shall use its best efforts
to have the amended  Registration  Statement  declared  effective  by the SEC no
later  than  ninety  (90)  days  from  filing  thereof,   (iii)  amendments  and
supplements to a Registration  Statement which are required to be filed pursuant
to this  Agreement  (including  pursuant to this Section  3(b)) by reason of any
event  which  requires  the  Company  to file a current  report on From 8-K that
requires financial  information under Item 9.01(a) or (b), the Company shall, if
not automatically  incorporated by reference into the Registration  Statement if
applicable,  shall file such amendments or supplements with the SEC necessary to
incorporate  such report into the  Registration  Statement or prospectus  within
seventy five (75) days following the happening of such event.

              (c) The Company shall furnish to each Investor  whose  Registrable
Securities are included in any Registration  Statement,  without charge,  (i) at
least one (1) copy of such Registration  Statement as declared  effective by the
SEC and any amendment(s) thereto,  including financial statements and schedules,
all  documents  incorporated  therein  by  reference,   all  exhibits  and  each
preliminary prospectus, (ii) ten (10) copies of the final prospectus included in
such Registration  Statement and all amendments and supplements thereto (or such
other number of copies as such Investor may  reasonably  request) and (iii) such
other  documents as such  Investor may  reasonably  request from time to time in
order to facilitate the disposition of the Registrable  Securities owned by such
Investor.

              (d) The Company  shall use its best  efforts to (i)  register  and
qualify the  Registrable  Securities  covered by a Registration  Statement under
such other  securities  or "blue sky" laws of such  jurisdictions  in the United
States as any  Investor  reasonably  requests,  (ii)  prepare  and file in those
jurisdictions,   such  amendments  (including  post-effective   amendments)  and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof during the Registration  Period,  (iii) take
such other  actions as may be  necessary  to  maintain  such  registrations  and
qualifications in effect at all times during the Registration  Period,  and (iv)
take all  other  actions  reasonably  necessary  or  advisable  to  qualify  the
Registrable Securities for sale in such jurisdictions;  provided,  however, that
the  Company  shall not be required in  connection  therewith  or as a condition
thereto to (w) make any change to its articles of incorporation or by-laws,  (x)
qualify to do  business  in any  jurisdiction  where it would not  otherwise  be
required to qualify but for this  Section  3(d),  (y) subject  itself to general

                                       4

<PAGE>

taxation in any such  jurisdiction,  or (z) file a general consent to service of
process  in any such  jurisdiction.  The  Company  shall  promptly  notify  each
Investor who holds  Registrable  Securities of the receipt by the Company of any
notification with respect to the suspension of the registration or qualification
of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction in the United States or its receipt of actual notice of
the initiation or threat of any proceeding for such purpose.

              (e) As promptly as practicable  after becoming aware of a Blackout
Event, the Company shall notify each Investor in writing of the happening of the
Blackout  Event  (provided  that in no  event  shall  such  notice  contain  any
material, nonpublic information), and promptly prepare a supplement or amendment
to such  Registration  Statement to correct such untrue statement or omission or
to make such prospectus current,  and deliver ten (10) copies of such supplement
or  amendment to each  Investor.  Each  Investor  shall not sell or transfer any
Registrable  Securities  pursuant  to  the  Registration  Statement  during  the
Blackout Period, provided however, the Company shall cause its transfer agent to
deliver  unlegended  shares of Common  Stock to a  transferee  of an Investor in
accordance  with the terms of the  Securities  Purchase  Agreement in connection
with any sale of  Registrable  Securities  with respect to which an Investor has
entered into a contract for sale and delivered a copy of the prospectus included
as part of the applicable  Registration Statement (unless an exemption from such
prospectus  delivery  requirement exists) prior to the Investor's receipt of the
notice of a Blackout  Event and for which the Investor has settled . The Company
shall also promptly notify each Investor in writing (i) when a prospectus or any
prospectus  supplement or  post-effective  amendment has been filed,  and when a
Registration  Statement or any  post-effective  amendment has become  effective,
(ii) of any request by the SEC for  amendments or  supplements to a Registration
Statement  or  related  prospectus  or  related  information,  and  (iii) of the
Company's  reasonable   determination  that  a  post-effective  amendment  to  a
Registration Statement would be appropriate.

              (f) The Company shall use its best efforts to prevent the issuance
of any  stop  order or  other  suspension  of  effectiveness  of a  Registration
Statement,  or the  suspension of the  qualification  of any of the  Registrable
Securities for sale in any jurisdiction within the United States of America and,
if such an order or suspension is issued, to obtain the withdrawal of such order
or  suspension at the earliest  possible  moment and to notify each Investor who
holds  Registrable  Securities  being sold of the issuance of such order and the
resolution  thereof or its receipt of actual notice of the  initiation or threat
of any  proceeding  for such purpose.

              (g) The Company  shall make  available  for  inspection by (i) any
Investor and (ii) one (1) firm of  accountants  or other agents  retained by the
Investors  (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 Investor  hereby agrees,  to hold in
strict  confidence and shall not make any disclosure  (except to an Investor) 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  Record 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 Record is ordered  pursuant to

                                       5

<PAGE>

a final,  non-appealable  order from a court or  governmental  body of competent
jurisdiction  the information in such Records has been made generally  available
to the public in  accordance  with  Regulation  FD other than by  disclosure  in
violation of this or any other agreement of which the Inspector and the Investor
has knowledge. Each Investor 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.

              (h)  The  Company  shall  hold in  confidence  and  not  make  any
disclosure of information  concerning an Investor provided to the Company unless
in the sole,  good faith  determination  of the Company (i)  disclosure  of such
information is necessary to comply with federal or state  securities  laws, (ii)
the  disclosure  of  such  information  is  necessary  to  avoid  or  correct  a
misstatement  or omission in any  Registration  Statement,  (iii) the release of
such   information   is  ordered   pursuant  to  a  subpoena  or  other   final,
non-appealable   order  from  a  court  or   governmental   body  of   competent
jurisdiction,  or (iv) such information has been made generally available to the
public other than by  disclosure  in  violation  of this  Agreement or any other
agreement.  The Company agrees that it shall,  upon learning that  disclosure of
such  information  concerning  an  Investor  is  sought  in  or  by a  court  or
governmental body of competent  jurisdiction or through other means, give prompt
written  notice to such  Investor  and allow such  Investor,  at the  Investor's
expense, to undertake  appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

              (i) The Company shall use its best efforts either to cause all the
Registrable  Securities covered by a Registration  Statement (i) to be listed on
each securities  exchange on which securities of the same class or series issued
by the Company  are then  listed,  if any,  if the  listing of such  Registrable
Securities  is then  permitted  under  the  rules of such  exchange  or (ii) the
inclusion for quotation on the National Association of Securities Dealers,  Inc.
OTC Bulletin Board for such  Registrable  Securities.  The Company shall pay all
fees and  expenses in  connection  with  satisfying  its  obligation  under this
Section 3(j).

              (j) The  Company  shall  cooperate  with  the  Investors  who hold
Registrable  Securities  being  offered  and,  to  the  extent  applicable,   to
facilitate the timely  preparation and delivery of certificates (not bearing any
restrictive  legend)  representing  the  Registrable  Securities  to be  offered
pursuant to a Registration  Statement and enable such certificates to be in such
denominations  or amounts,  as the case may be, as the Investors may  reasonably
request and registered in such names as the Investors may request.

              (k) The Company  shall  otherwise  use its best  efforts to comply
with all  applicable  rules and  regulations  of the SEC in connection  with any
registration hereunder.

              (l) Within two (2) business  days after a  Registration  Statement
which  covers  Registrable  Securities  is declared  effective  by the SEC,  the
Company shall deliver, and shall cause legal counsel for the Company to deliver,
to the  transfer  agent  for such  Registrable  Securities  (with  copies to the
Investors  whose  Registrable  Securities  are  included  in  such  Registration
Statement)  confirmation  that such  Registration  Statement  has been  declared
effective by the SEC in the form attached hereto as EXHIBIT A.

                                       6

<PAGE>

              (m) The Company shall take all other reasonable  actions necessary
to  expedite  and  facilitate   disposition  by  the  Investors  of  Registrable
Securities pursuant to a Registration Statement.

              (n)  Notwithstanding  anything to the contrary herein, at any time
after the  Effective  Date,  the Company may delay the  disclosure  of material,
non-public  information  concerning  the Company the  disclosure of which at the
time is not, in the good faith  opinion of the Board of Directors of the Company
(following  consultation with its counsel),  in the best interest of the Company
(a "GRACE  PERIOD");  provided,  that the Company shall  promptly (i) notify the
Investors in writing that such  determination  has been made  (provided  that in
each  notice  the  Company  will not  disclose  the  content  of such  material,
non-public  information to the Investors) and the date on which the Grace Period
will begin,  and (ii) notify the  Investors  in writing of the date on which the
Grace Period ends; and,  provided  further,  that during any three hundred sixty
five (365) day period such Grace Periods shall not exceed an aggregate of twenty
(20) days and the first day of any Grace Period must be at ten (10) trading days
after  the last  day of any  prior  Grace  Period  (each,  an  "ALLOWABLE  GRACE
PERIOD").  For purposes of determining  the length of a Grace Period above,  the
Grace  Period  shall  begin on and include  the date the  Investors  receive the
notice  referred  to in clause (i) and shall end on and include the later of the
date the  Investors  receive the notice  referred to in clause (ii) and the date
referred to in such notice.  Upon  expiration of the Grace  Period,  the Company
shall again be bound by the first  sentence of Section  3(e) with respect to the
information giving rise thereto unless such material,  non-public information is
no longer  applicable.  Notwithstanding  anything to the  contrary,  the Company
shall cause its transfer agent to deliver unlegended shares of Common Stock to a
transferee  of an  Investor  in  accordance  with the  terms  of the  Securities
Purchase  Agreement in connection  with any sale of Registrable  Securities with
respect to which an Investor has entered into a contract for sale and  delivered
a copy  of the  prospectus  included  as  part  of the  applicable  Registration
Statement (unless an exemption from such prospectus delivery requirement exists)
prior to the  Investor's  receipt of the notice of a Grace  Period and for which
the Investor has settled.

              4. OBLIGATIONS OF THE INVESTORS.

         Each Investor  agrees that, upon receipt of any notice from the Company
of a Blackout Event or any stop order or other  suspension of the  effectiveness
of the  registration  Statement,  such  Investor  will  immediately  discontinue
disposition of Registrable Securities pursuant to any Registration  Statement(s)
covering such Registrable Securities until such Investor's receipt of the copies
of the  supplemented  or amended  prospectus  contemplated  by  Section  3(e) or
receipt of notice that no supplement  or amendment is required.  Notwithstanding
anything to the contrary,  the Company shall cause its transfer agent to deliver
unlegended  certificates  for  shares  of  Common  Stock to a  transferee  of an
Investor in accordance  with the terms of the Securities  Purchase  Agreement in
connection  with any sale of  Registrable  Securities  with  respect to which an
Investor has entered into a contract for sale prior to the Investor's receipt of
a notice from the Company of the happening of any event of the kind described in
Section  3(f) or the  first  sentence  of 3(e) and for which  the  Investor  has
settled.

              5. EXPENSES OF REGISTRATION.

                                       7

<PAGE>

         All expenses  incurred in  connection  with  registrations,  filings or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration,  listing and qualifications fees,  printers,  legal and accounting
fees shall be paid by the Company.

              6. INDEMNIFICATION.

         With  respect  to  Registrable  Securities  which  are  included  in  a
Registration Statement under this Agreement:

              (a) To the fullest extent  permitted by law, the Company will, and
hereby does, indemnify,  hold harmless and defend each Investor,  the directors,
officers, partners,  employees, agents,  representatives of, and each Person, if
any, who controls any Investor  within the meaning of the  Securities Act or the
Exchange  Act (each,  an  "INDEMNIFIED  PERSON"),  against any  losses,  claims,
damages,  liabilities,  judgments, fines, penalties,  charges, costs, reasonable
attorneys'  fees,  amounts  paid in  settlement  or  expenses,  joint or several
(collectively,  "Claims") incurred in investigating,  preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by or  before  any  court or  governmental,  administrative  or other
regulatory  agency,  body or the SEC, whether pending or threatened,  whether or
not an indemnified party is or may be a party thereto  ("INDEMNIFIED  DAMAGES"),
to which any of them may become  subject  insofar as such  Claims (or actions or
proceedings,  whether commenced or threatened,  in respect thereof) arise out of
or are based upon:  (i) any untrue  statement or alleged  untrue  statement of a
material  fact  in a  Registration  Statement  or any  post-effective  amendment
thereto  or in any  filing  made in  connection  with the  qualification  of the
offering  under the securities or other "blue sky" laws of any  jurisdiction  in
which Registrable Securities are offered ("BLUE SKY FILING"), or the omission or
alleged  omission  to state a material  fact  required  to be stated  therein or
necessary  to make the  statements  therein  not  misleading;  (ii)  any  untrue
statement or alleged untrue  statement of a material fact contained in any final
prospectus  (as  amended or  supplemented,  if the Company  files any  amendment
thereof or supplement  thereto with the SEC) or the omission or alleged omission
to state  therein  any  material  fact  necessary  to make the  statements  made
therein,  in light of the circumstances  under which the statements therein were
made, not misleading; or (iii) any violation or alleged violation by the Company
of the  Securities  Act, the Exchange  Act,  any other law,  including,  without
limitation,  any state  securities  law, or any rule or  regulation  there under
relating  to the  offer  or sale of the  Registrable  Securities  pursuant  to a
Registration  Statement (the matters in the foregoing  clauses (i) through (iii)
being,  collectively,  "VIOLATIONS").  The Company shall reimburse the Investors
and each such controlling  person promptly as such expenses are incurred and are
due and  payable,  for any  legal  fees or  disbursements  or  other  reasonable
expenses incurred by them in connection with investigating or defending any such
Claim.   Notwithstanding   anything  to  the  contrary   contained  herein,  the
indemnification agreement contained in this Section 6(a): (x) shall not apply to
a Claim by an Indemnified  Person arising out of or based upon a Violation which
occurs in reliance upon and in conformity with information  furnished in writing
to the Company by such  Indemnified  Person expressly for use in connection with
the preparation of the Registration  Statement or any such amendment  thereof or
supplement thereto; (y) shall not be available to the extent such Claim is based
on a  failure  of the  Investor  to  deliver  or to  cause to be  delivered  the
prospectus  made  available by the Company,  if such  prospectus was timely made
available by the Company  pursuant to Section  3(c);  and (z) shall not apply to
amounts paid in settlement of any Claim if such  settlement is effected  without
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be

                                       8

<PAGE>

unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless of any investigation  made by or on behalf of the Indemnified  Person
and shall  survive the transfer of the  Registrable  Securities by the Investors
pursuant to Section 9 hereof.

              (b) In connection  with a  Registration  Statement,  each Investor
agrees to severally and not jointly indemnify,  hold harmless and defend, to the
same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its  directors,  each of its officers,  employees,  representatives,  or
agents and each Person,  if any, who controls the Company  within the meaning of
the Securities Act or the Exchange Act (each an  "INDEMNIFIED  PARTY"),  against
any Claim or Indemnified Damages to which any of them may become subject,  under
the  Securities  Act, the Exchange  Act or  otherwise,  insofar as such Claim or
Indemnified Damages arise out of or is based upon any Violation, in each case to
the extent, and only to the extent,  that such Violation occurs in reliance upon
and in  conformity  with  written  information  furnished to the Company by such
Investor expressly for use in connection with such Registration Statement;  and,
subject  to  Section  6(d),  such  Investor  will  reimburse  any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending  any such  Claim;  provided,  however,  that the  indemnity  agreement
contained in this Section 6(b) and the  agreement  with respect to  contribution
contained  in Section 7 shall not apply to  amounts  paid in  settlement  of any
Claim if such  settlement is effected  without the prior written consent of such
Investor, which consent shall not be unreasonably withheld;  provided,  further,
however, that the Investor shall be liable under this Section 6(b) for only that
amount of a Claim or Indemnified  Damages as does not exceed the net proceeds to
such Investor as a result of the sale of Registrable Securities pursuant to such
Registration  Statement.  Such  indemnity  shall remain in full force and effect
regardless of any  investigation  made by or on behalf of such Indemnified Party
and shall  survive the transfer of the  Registrable  Securities by the Investors
pursuant  to Section  9.  Notwithstanding  anything  to the  contrary  contained
herein,  the  indemnification  agreement  contained  in this  Section  6(b) with
respect to any  prospectus  shall not inure to the  benefit  of any  Indemnified
Party if the untrue  statement  or omission of material  fact  contained  in the
prospectus  was corrected and such new prospectus was delivered to each Investor
prior to such Investor's use of the prospectus to which the Claim relates.

              (c) Promptly after receipt by an Indemnified Person or Indemnified
Party  under  this  Section  6 of notice of the  commencement  of any  action or
proceeding  (including any governmental action or proceeding) involving a Claim,
such  Indemnified  Person or  Indemnified  Party  shall,  if a Claim in  respect
thereof is to be made  against  any  indemnifying  party  under this  Section 6,
deliver to the indemnifying party a written notice of the commencement  thereof,
and the  indemnifying  party shall have the right to participate in, and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly  noticed,  to assume control of the defense thereof with counsel
mutually  satisfactory to the indemnifying  party and the Indemnified  Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel  with the fees and  expenses  of not more than one (1)  counsel for such
Indemnified  Person or Indemnified  Party to be paid by the indemnifying  party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by such counsel of the Indemnified  Person or Indemnified  Party
and the  indemnifying  party would be  inappropriate  due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party  represented  by such counsel in such  proceeding.  The  Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in

                                       9

<PAGE>

connection  with any  negotiation  or defense of any such action or claim by the
indemnifying  party and shall furnish to the indemnifying  party all information
reasonably  available  to the  Indemnified  Party or  Indemnified  Person  which
relates  to such  action  or  claim.  The  indemnifying  party  shall  keep  the
Indemnified  Party or  Indemnified  Person fully apprised at all times as to the
status of the defense or any settlement  negotiations  with respect thereto.  No
indemnifying  party shall be liable for any  settlement of any action,  claim or
proceeding effected without its prior written consent;  provided,  however, that
the indemnifying party shall not unreasonably  withhold,  delay or condition its
consent.  No indemnifying party shall,  without the prior written consent of the
Indemnified  Party or  Indemnified  Person,  consent to entry of any judgment or
enter into any  settlement  or other  compromise  which  does not  include as an
unconditional  term  thereof  the giving by the  claimant or  plaintiff  to such
Indemnified  Party or  Indemnified  Person of a release  from all  liability  in
respect to such claim or litigation.  Following  indemnification as provided for
hereunder,  the  indemnifying  party  shall be  subrogated  to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

              (d) The  indemnification  required by this Section 6 shall be made
by  periodic   payments  of  the  amount   thereof  during  the  course  of  the
investigation or defense,  as and when bills are received or Indemnified Damages
are incurred.

              (e) The indemnity agreements contained herein shall be in addition
to (i) any  cause  of  action  or  similar  right  of the  Indemnified  Party or
Indemnified  Person  against  the  indemnifying  party or  others,  and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

              7. CONTRIBUTION.

         To  the  extent  any   indemnification  by  an  indemnifying  party  is
prohibited or limited by law, the indemnifying  party agrees to make the maximum
contribution  with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable  Securities guilty of fraudulent  misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution  from any seller of  Registrable  Securities  who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds  received by
such seller from the sale of such Registrable Securities.

              8. REPORTS UNDER THE EXCHANGE ACT.

         With a view to making  available to the  Investors the benefits of Rule
144  promulgated  under the  Securities Act or any similar rule or regulation of

                                       10

<PAGE>

the SEC that may at any time  permit the  Investors  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 (it being understood
that nothing herein shall limit the Company's  obligations under Section 4(c) of
the  Securities  Purchase  Agreement)  and the filing of such  reports and other
documents as are required by the applicable provisions of Rule 144; and

              (c)  furnish  to each  Investor  so long  as  such  Investor  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  Investors  to sell such  securities  pursuant  to Rule 144  without
registration.

              9. AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance  thereof
may  be  waived  (either  generally  or  in a  particular  instance  and  either
retroactively  or  prospectively),  only with the written consent of the Company
and  Investors  who then  hold at  least  two-thirds  (2/3)  of the  Registrable
Securities.  Any amendment or waiver  effected in accordance with this Section 9
shall be binding upon each Investor and the Company.  No such amendment shall be
effective  to the extent that it applies to fewer than all of the holders of the
Registrable Securities.  No consideration shall be offered or paid to any Person
to amend or consent to a waiver or  modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

              10. MISCELLANEOUS.

              (a) A Person is deemed  to be a holder of  Registrable  Securities
whenever  such  Person  owns or is  deemed  to own of  record  such  Registrable
Securities  or owns the right to  receive  the  Registrable  Securities.  If the
Company receives conflicting instructions,  notices or elections from two (2) or
more Persons with respect to the same Registrable Securities,  the Company shall
act upon  the  basis of  instructions,  notice  or  election  received  from the
registered owner of such Registrable Securities.

              (b)  Any  notices,   consents,  waivers  or  other  communications
required or permitted to be given under the terms of this  Agreement  must be in
writing  and will be deemed  to have  been  delivered:  (i) upon  receipt,  when
delivered  personally;  (ii)  upon  receipt,  when sent by  facsimile  (provided
confirmation of transmission  is  mechanically or  electronically  generated and
kept on file by the sending party);  or (iii) one (1) business day after deposit
with a nationally  recognized  overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile  numbers
for such communications shall be:

                                       11

<PAGE>

If to the Company, to:                         Radial Energy, Inc.
                                               1313 East Maple Street, Suite 223
                                               Bellingham, WA  98225
                                               Attn:    Chief Financial Officer
                                               Telephone:        (360) 685-4240
                                               Facsimile:

With Copy to:                                  Greenberg Traurig, LLP
                                               650 Town Center Drive, Suite 1700
                                               Costa Mesa, CA 92626
                                               Attn: Raymond Lee, Esq.
                                               Telephone:        (714) 708-6510

If to an  Investor,  to its  address  and  facsimile  number on the  Schedule of
Investors attached hereto, with copies to such Investor's representatives as set
forth on the  Schedule of Investors or to such other  address  and/or  facsimile
number and/or to the  attention of such other person as the recipient  party has
specified by written notice given to each other party five (5) days prior to the
effectiveness of such change.  Written  confirmation of receipt (A) given by the
recipient  of  such  notice,  consent,   waiver  or  other  communication,   (B)
mechanically  or  electronically  generated  by the sender's  facsimile  machine
containing the time, date,  recipient facsimile number and an image of the first
page of such  transmission  or (C)  provided by a courier or  overnight  courier
service shall be rebuttable  evidence of personal service,  receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

              (c)  Failure of any party to  exercise  any right or remedy  under
this  Agreement or otherwise,  or delay by a party in  exercising  such right or
remedy, shall not operate as a waiver thereof.

              (d) The laws of the State of New  Jersey  shall  govern all issues
concerning  the  relative  rights  of  the  Company  and  the  Investors  as its
stockholders.  All  other  questions  concerning  the  construction,   validity,
enforcement  and  interpretation  of this  Agreement  shall be  governed  by the
internal laws of the State of New Jersey, without giving effect to any choice of
law or conflict of law  provision or rule (whether of the State of New Jersey or
any other  jurisdiction)  that would  cause the  application  of the laws of any
jurisdiction  other than the State of New Jersey.  Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the Superior Courts of the State of
New Jersey,  sitting in Hudson  County,  New Jersey and  federal  courts for the
District of New Jersey sitting Newark,  New Jersey,  for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein,  and hereby  irrevocably  waives,  and agrees not to
assert in any suit,  action or  proceeding,  any claim that it is not personally
subject  to the  jurisdiction  of any such  court,  that  such  suit,  action or
proceeding is brought in an  inconvenient  forum or that the venue of such suit,
action or proceeding is improper.  Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or  proceeding  by mailing a copy  thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient  service of process and notice  thereof.  Nothing  contained

                                       12

<PAGE>

herein  shall be deemed to limit in any way any  right to serve  process  in any
manner  permitted by law. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction  or the  validity  or  enforceability  of  any  provision  of  this
Agreement in any other  jurisdiction.  EACH PARTY HEREBY  IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,  A JURY TRIAL FOR THE ADJUDICATION
OF ANY  DISPUTE  HEREUNDER  OR IN  CONNECTION  HEREWITH  OR ARISING  OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

              (e) This Agreement,  the Irrevocable  Transfer Agent Instructions,
the  Securities   Purchase   Agreement  and  related  documents   including  the
Convertible  Debenture  and the  Security  Agreement  dated the date hereof (the
"SECURITY  AGREEMENT")  constitute the entire agreement among the parties hereto
with  respect  to  the  subject   matter  hereof  and  thereof.   There  are  no
restrictions,  promises, warranties or undertakings,  other than those set forth
or referred to herein and therein.  This  Agreement,  the  Irrevocable  Transfer
Agent  Instructions,  the Securities  Purchase  Agreement and related  documents
including the Convertible  Debenture,  and the Security Agreement  supersede all
prior agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.

              (f) This  Agreement  shall  inure to the benefit of and be binding
upon the permitted successors and assigns of each of the parties hereto.

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

              (h) This Agreement may be executed in identical counterparts, each
of which shall be deemed an original but all of which shall  constitute  one and
the same agreement.  This Agreement,  once executed by a party, may be delivered
to the other party hereto by facsimile  transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement.

              (i)  Each  party  shall  do and  perform,  or cause to be done and
performed,  all such further acts and things,  and shall execute and deliver all
such other  agreements,  certificates,  instruments and documents,  as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

The language used in this Agreement will be deemed to be the language  chosen by
the parties to express their mutual  intent and no rules of strict  construction
will be applied against any party.

              (j) This  Agreement  is  intended  for the  benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       13

<PAGE>

         IN WITNESS  WHEREOF,  each  Investor  and the Company have caused their
signature  page  to  this  Investor  Registration  Rights  Agreement  to be duly
executed as of the date first above written..

                                         COMPANY:
                                         RADIAL ENERGY, INC.

                                         By:/s/ G. LEIGH LYONS
                                            _______________________
                                         Name:    G. Leigh Lyons
                                         Title:   President

                                       14

<PAGE>

         IN WITNESS  WHEREOF,  each  Investor  and the Company have caused their
signature  page  to  this  Investor  Registration  Rights  Agreement  to be duly
executed as of the date first above written.

                                         INVESTOR:
                                         CORNELL CAPITAL PARTNERS, LP

                                         By:      Yorkville Advisors, LLC
                                         Its:     General Partner

                                         By: /s/ MARK ANGELO
                                         Name:    Mark Angelo
                                         Title:   Portfolio Manager

                                       15

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