Document:

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EXHIBIT 4.4

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                          REGISTRATION RIGHTS AGREEMENT

                                 BY AND BETWEEN

                         PACIFIC ENERGY RESOURCES LTD.,

                              GOLDMAN, SACHS & CO.,

                               SPCP GROUP, L.L.C.

                                       AND

                               SPCP GROUP III LLC

                          DATED AS OF NOVEMBER 30, 2006

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                                TABLE OF CONTENTS

                                                                           PAGE
                                                                           ----

ARTICLE I --INTERPRETATION...................................................1
Section 1.1.      Certain Definitions........................................1
ARTICLE II --REGISTRATION UNDER APPLICABLE SECURITIES LAWS...................7
Section 2.1.      Demand Registration........................................7
Section 2.2.      Incidental Registration....................................9
Section 2.3.      Registration Procedures...................................10
Section 2.4.      Incidental Underwritten Offerings.........................15
Section 2.5.      Preparation; Reasonable. Investigation....................15
Section 2.6.      Indemnification...........................................16
Section 2.7.      Adjustments Affecting Registrable Shares. ................18
Section 2.8.      Expenses..................................................18
ARTICLE HI --ADDITIONAL COVENANTS...........................................19
Section 3.1.      POP System Eligibility. ................................. 19
Section 3.2.      Other Registration Rights.................................19
Section 3.3.      Rule 144 and Rule 144A....................................19
ARTICLE IV --MISCELLANEOUS..................................................20
Section 4.1.      Calculation of Time Periods...............................20
Section 4.2.      Severability..............................................20
Section 4.3.      Amendments................................................20
Section 4.4.      Waiver....................................................20
Section 4.5.      Time of Essence...........................................20
Section 4.6.      Further Acts..............................................20
Section 4.7.      Notices...................................................20
Section 4.8.      Entire Agreement..........................................20
Section 4.9.      Binding Effect; Assignment................................21
Section 4.10.     Descriptive Headings......................................21
Section 4.11.     GOVERNING LAW.............................................21
Section 4.12.     CONSENT TO EXCLUSIVE JURISDICTION.........................21
Section 4.13.     WAIVER OF JURY TRIAL......................................21
Section 4.14.     Counterparts..............................................22

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                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), is dated as of
November 30, 2006, between Pacific Energy Resources Ltd., a Delaware corporation
(the "COMPANY"), Goldman, Sachs & Co. ("GOLDMAN"), and SPCP Group, L.L.C. and
SPCP Group III LLC (together, "SILVER POINT", and each with Goldman, each a
"BUYER," and collectively, the "BUYERS").

                                    RECITALS:

         A. Reference is hereby made to those certain Warrant Purchase
Agreements dated of even date herewith (as they may be amended, supplemented or
otherwise modified, the "WARRANT PURCHASE AGREEMENT"), by and between the
Company and each Buyer. Terms used but not defined herein shall have the
respective meanings assigned to such terms in the Warrant Purchase Agreement.

         B. The Company and the Buyers are entering enter into this Agreement to
reflect the agreement of the parties hereto regarding registration rights with
respect to the shares of common stock of the Company, par value $0.0001 per
share (the "COMMON STOCK") now owned or hereafter acquired by a Buyer.

                                   AGREEMENT:

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, the Company and the Buyers hereby agree as follows.

                            ARTICLE I--INTERPRETATION
                                       --------------

         SECTION 1.1. CERTAIN DEFINITIONS.

         (a) In this Agreement, unless the context otherwise requires, the
following terms have the following respective meanings:

         "AFFILIATE" has the meaning assigned to such term in Rule 405 under the
U.S. Securities Act.

         "APPLICABLE SECURITIES LAWS" means the applicable Canadian Securities
Laws and the applicable U.S. Securities Laws.

         "BOARD OF DIRECTORS" means the board of directors of the Company.

         "BUSINESS DAY" means any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of the State of New York or is a day on
which banking institutions located in such state are authorized or required by
law or other governmental action to close.

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         "CANADIAN SECURITIES COMMISSIONS" means, collectively, the securities
commission of each of the Qualifying Jurisdictions in Canada or any other
securities regulatory authority of any such Qualifying Jurisdiction at the time
administering the Canadian Securities Laws of such Qualifying Jurisdiction.

         "CANADIAN SECURITIES LAWS" means, collectively, the securities laws
from time to time in effect of each of the Qualifying Jurisdictions in Canada
and the respective rules and regulations from time to time made and forms from
time to time prescribed thereunder and all published policy statements, notices,
interpretation notes, blanket orders and rulings and other instruments from time
to time in effect of the Canadian Securities Commissions of such Qualifying
Jurisdictions (including national policy statements, notices and other
instruments from time to time in effect of the Canadian Securities
Administrators).

         "COMMON SHARE OPTION PLAN" means the stock option plan or any similar
or replacement plan established by the Company or any of its direct or indirect
wholly-owned subsidiaries from time to time and pursuant to which Common Shares
are issuable

         "COMMON SHARES" means shares of Common Stock of the Company.

         "COMPANY SECURITIES" means all outstanding Common Shares and Common
Shares issuable upon exercise of Convertible Securities and Stock Options.

         "CONVERTIBLE SECURITIES" means (i) the Warrants, and (ii) any other
securities convertible into, or exchangeable or exercisable for, Common Shares,
including exchangeable securities, convertible debentures, convertible preferred
shares, warrants and rights but excluding Stock Options.

         "DEMAND REGISTRATION NOTICE" has the meaning attributed thereto in
SECTION 2.1(a).

         "EFFECTIVE" means, with respect to the registration of any securities,
(i) in circumstances in which any Canadian Securities Laws are applicable, the
issuance by applicable Canadian Securities Commissions of receipts (including a
mutual reliance review system decision document pursuant to the Expedited Review
System) under such Canadian Securities Laws for a Prospectus (excluding, if the
PREP Procedures are applicable, any PREP Information omitted therefrom) relating
to the qualification of such securities; and (ii) in circumstances in which the
U.S. Securities Laws are applicable, the declaration by the SEC of the
effectiveness or the deemed effectiveness under the U.S. Securities Act of a
Registration Statement relating to the registration of such securities, and
"EFFECTIVENESS" and similar terms have correlative meanings and "EFFECTIVE TIME"
means the time and date as of which any such Prospectus or Registration
Statement becomes effective.

         "EXPEDITED REVIEW SYSTEM" means National Policy 43-201 - MUTUAL
RELIANCE REVIEW SYSTEM FOR PROSPECTUSES AND ANNUAL INFORMATION FORMS - of the
Canadian Securities Administrators, or any successor thereto, as from time to
time amended.

         "INCIDENTAL REGISTRATION NOTICE" has the meaning attributed thereto in
SECTION 2.2(a).

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         "MATERIAL ADVERSE CHANGE" means any change (or any condition, event or
development involving a prospective change) in the business, operations, results
of operations, assets, capitalization, financial condition, licenses, permits,
concessions, rights, liabilities, prospects or privileges, whether contractual
or otherwise, of the Company or Buyer, as the case may be, taken as a whole,
which is materially adverse to the business of the Company or Buyer, as the case
may be, taken as a whole, or which would have a material adverse effect on the
ability of such party to consummate the transactions contemplated hereby.

         "MATERIAL CHANGE", "MATERIAL FACT" and "MISREPRESENTATION" have the
respective meanings attributed thereto under applicable Canadian Securities
Laws, provided that, in circumstances in which the Canadian Securities Laws of
any Qualifying Jurisdiction in Canada are applicable and any such term is not
defined thereunder or in circumstances in which no Canadian Securities Laws are
applicable, such term or terms, as the case may be, shall have the respective
meanings attributed thereto in the SECURITIES ACT, and provided further that, in
circumstances in which the U.S. Securities Laws are applicable, "MATERIAL FACT"
shall have the meaning attributed thereto under applicable U.S. Securities Laws
having regard to Rules 405 and 408 under the U.S. Securities Act and
"MISREPRESENTATION" shall mean an untrue statement of a material fact or an
omission to state a material fact required to be stated or necessary to make a
statement not misleading in light of the circumstances under which it was made.

         "NASD" means the National Association of Securities Dealers, Inc., or
any successor thereto.

         "NI 44-103" means National Instrument 44-103 - POST-RECEIPT PRICING -
of the Canadian Securities Administrators, or any successor thereto, as from
time to time amended.

         "OFFERING DOCUMENTS" means, with respect to any registration of
Registrable Shares, a Preliminary Prospectus and a Prospectus (and, if the PREP
Procedures are applicable, a Supplemental PREP Prospectus) relating to such
registration and any other document (including, unless the context otherwise
requires, any amendment or supplement to such Preliminary Prospectus, Prospectus
or Supplemental PREP Prospectus) required by Applicable Securities Laws to be
delivered by or on behalf of Participating Securityholders to prospective
purchasers of such Registrable Shares in connection with the resale and
distribution thereof.

         "PARTICIPATING SECURITYHOLDER" has the meaning attributed thereto in
SECTION 2.1(a) and SECTION 2.2(a)(i), as the case may be.

         "PERSON" includes any individual, corporation, body corporate, limited
liability company, partnership, association, trust, estate or unincorporated
organization, or any trustee, executor, administrator or other legal or personal
representative, government body or regulatory authority or other entity however
designated or constituted.

         "POP SYSTEM" means the prompt offering qualification system for the
distribution of securities by means of a short form prospectus provided for
under National Instrument 44-101 -SHORT FORM PROSPECTUS DISTRIBUTIONS - of the
Canadian Securities Administrators, or under any successor to such national
instrument, as from time to time amended.

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         "PRELIMINARY PROSPECTUS" means a preliminary prospectus or preliminary
short form prospectus, as applicable, of the Company, in a form which counsel to
the Company and counsel to the Requesting Securityholder shall consider
suitable, relating to the resale and distribution of Registrable Shares (and
such other securities, if any, as provided in SECTION 2.1(b) and SECTION 2.2(a))
in the Qualifying Jurisdictions in Canada under Applicable Securities Laws or
the POP System, as applicable and, unless the context otherwise requires,
includes any documents incorporated or deemed to be incorporated by reference
therein under the POP System and, if Quebec is a Qualifying Jurisdiction, the
French language version thereof, provided that such term shall also mean, unless
the context otherwise requires, such prospectus which shall constitute part of,
and be included in, the Registration Statement relating to such resale and
distribution in the United States.

         "PREP INFORMATION" means the information to be set forth in a
Supplemental PREP Prospectus that is permitted to be omitted from the Prospectus
relating to such Supplemental PREP Prospectus in accordance with the PREP
Procedures.

         "PREP PROCEDURES" means the rules and procedures established under NI
44-103 for the pricing of securities in certain prospectus offerings after a
receipt for the prospectus has been obtained.

         "PROPOSED REGISTRATION NOTICE" has the meaning attributed thereto in
SECTION 2.2(a).

         "PROSPECTUS" means a final prospectus or final short form prospectus,
as applicable, of the Company, in a form which counsel to the Company and
counsel to the Requesting Securityholder shall reasonably consider suitable,
relating to the resale and distribution of Registrable Shares (and such other
securities, if any, as provided in SECTION 2.2(a)) in the Qualifying
Jurisdictions in Canada under Applicable Securities Law or the POP System, if
applicable, and, unless the context otherwise requires, includes any documents
incorporated or deemed to be incorporated by reference therein under the POP
System (including, if the PREP Procedures are applicable, any PREP Information
set forth in a Supplemental PREP Prospectus relating to such resale and
distribution that is deemed under the PREP Procedures to be incorporated by
reference into such final short form prospectus) and, if Quebec is a Qualifying
Jurisdiction, the French language version thereof provided that such term shall
also mean, unless the context otherwise requires, such final short form
prospectus which shall constitute part of, and be included in, the Registration
Statement relating to such resale and distribution in the United States.

         "QUALIFYING JURISDICTIONS" means each of the provinces of Canada and,
(i) with respect to any registration of securities in connection with a demand
registration pursuant to SECTION 2.1, the United States (and the applicable
states thereof) if so designated; or (ii) with respect to any registration of
securities in connection with an incidental registration pursuant to SECTION
2.2, such other jurisdictions (including the United States and the applicable
states thereof) as may be designated by the Company in a Proposed Registration
Notice.

         "REGISTER" means, with respect to any securities, (i) in circumstances
in which any Canadian Securities Laws are applicable, the qualification for
distribution of such securities under such Canadian Securities Laws effected by
preparing and filing with applicable Canadian

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         Securities Commissions a Preliminary Prospectus and a Prospectus
relating to such distribution, and obtaining receipts therefor from such
Canadian Securities Commissions, in accordance with such Canadian Securities
Laws; and (ii) in circumstances in which the U.S. Securities Laws are
applicable, the registration of the offer and sale of such securities under the
U.S. Securities Act effected by preparing and filing with the SEC a Registration
Statement covering such offer and sale and causing such Registration Statement
to become effective in accordance with the U.S. Securities Act, and
"REGISTERED", "REGISTRATION" and similar terms have correlative meanings.

         "REGISTRABLE SHARES" means any (a) Common Shares, (b) Common Shares
issued on exercise of Warrants or issuable upon the due exercise of Warrants, or
(c) Common Shares issued or issuable upon exercise of any security, held by any
Securityholder as of the date of any Demand Registration Notice or Incidental
Registration Notice, as the case may be, and any Common Shares issued or
distributed by the Company in respect of such securities in connection with a
stock dividend, subdivision or other reorganization of the Company's capital,
that are held by any Securityholder as of the date of any Demand Registration
Notice or Incidental Registration Notice, as the case may be, provided that any
such securities shall cease to be Registrable Shares when: (i) a registration of
such securities in accordance with the terms hereof shall have become effective
and the underwriting in respect thereof has been successfully completed; (ii)
such securities shall have ceased to be outstanding; (iii) such securities shall
have ceased to be held or beneficially owned by any Securityholder; or (iv) the
Company and the Securityholder shall each have received an opinion of its
counsel to the effect that, under the Canadian Securities Laws and U.S.
Securities Laws, such securities are no longer subject to any restrictions on
resale under the Canadian Securities Laws or U.S. Securities Laws.

         "REGISTRATION DOCUMENTS" means, with respect to any registration of
Registrable Shares, a Preliminary Prospectus, a Prospectus, a Supplemental PREP
Prospectus (if the PREP Procedures are applicable) and a Registration Statement,
or other form of disclosure document, relating to such registration and any
other document (including, unless the context otherwise requires, any amendment
or supplement to such Preliminary Prospectus, Prospectus, Supplemental PREP
Prospectus or Registration Statement) required by Applicable Securities Laws to
be filed with applicable Securities Commissions by or on behalf of Participating
Securityholders or the Company in order to cause such registration to become
effective and/or required by Applicable Securities Laws to be delivered by or on
behalf of Participating Securityholders to prospective purchasers of such
Registrable Shares in connection with the resale and distribution thereof.

         "REGISTRATION STATEMENT" means a registration statement under the U.S.
Securities Act, in a form which counsel to the Company and counsel to the
Requesting Securityholder shall reasonably consider suitable, relating to the
resale and distribution of Registrable Shares in the United States, as from time
to time amended, and, unless the context otherwise requires, includes the
exhibits thereto, any documents incorporated or deemed to be incorporated by
reference therein and, if the PREP Procedures are applicable, any PREP
Information set forth in a Supplemental PREP Prospectus relating to such resale
and distribution.

         "REQUESTING SECURITYHOLDER" means any Securityholder (a) making a
request for demand registration under a Shelf Demand Registration Notice
pursuant to SECTION 2.1(a) OR (b) making a request for incidental registration
under an Incidental Registration Notice pursuant to SECTION 2.2(a), as the case
may be, including in each case any Participating Securityholders.

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         "SEC" means the United States Securities and Exchange Commission or any
other federal agency of the United States at the time administering the U.S.
Securities Act or the U.S. Exchange Act, whichever is the relevant statute in
the context in which such term is used.

         "SECURITIES ACT" means the SECURITIES ACT (Alberta), or any successor
thereto, as from time to time amended.

         "SECURITIES COMMISSIONS" means the Canadian Securities Commissions and,
if the United States is a Qualifying Jurisdiction, the SEC.

         "SECURITYHOLDER" means a Buyer and any affiliate of a Buyer which holds
Registrable Shares and, if applicable, any person who is an assignee pursuant to
SECTION 4.9.

         "SHELF DEMAND REGISTRATION NOTICE" has the meaning attributed thereto
in SECTION 2.1(A).

         "STOCK OPTIONS" means any Common Share options granted by the Company
or any of its direct or indirect wholly-owned subsidiaries pursuant to the
Common Share Option Plan.

         "SUBSIDIARY" has the meaning attributed thereto in the SECURITIES ACT.

         "SUPPLEMENTAL PREP PROSPECTUS" means a supplemented short form
prospectus of the Company, in a form which counsel to the Company and counsel to
the Requesting Securityholder shall reasonably consider suitable, which sets
forth the PREP Information omitted from a Prospectus relating to the resale and
distribution of Registrable Shares (and such other securities, if any, as
provided in SECTION 2.1(b) and SECTION 2.2(a)) in the Qualifying Jurisdictions
in Canada and, if Quebec is a Qualifying Jurisdiction, includes, unless the
context otherwise requires, the French language version thereof, provided that
such term shall also mean, unless the context otherwise requires, such
supplemented short form prospectus forming part of the Registration Statement
relating to such resale and distribution in the United States.

         "TERMINATION DATE" means the first date on which no Securityholder
holds Registrable Shares.

         "UNDERWRITING" means (i) with respect to any resale of Registrable
Shares by any Securityholder, a firm commitment underwriting (including a
"BOUGHT DEAL") by one or more investment dealers to purchase such Registrable
Shares as principal from such Securityholder for resale or a "BEST EFFORTS" or
other commitment by one or more investment dealers to sell such Registrable
Shares as broker or as sales or placement agent for such Securityholder; and
(ii) with respect to any issue and sale of securities of the Company by the
Company, a firm commitment underwriting by one or more investment dealers to
purchase such securities as principal from the Company for resale, and
"UNDERWRITE", "UNDERWRITTEN" and similar terms have correlative meanings and
"UNDERWRITER" means any such investment dealer acting or proposing to act in any
such capacity.

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         "U.S. EXCHANGE ACT" means the UNITED STATES SECURITIES EXCHANGE ACT OF
1934, or any successor thereto, as from time to time amended, and the rules,
regulations and forms from time to time promulgated thereunder.

         "U.S. SECURITIES ACT" means the UNITED STATES SECURITIES ACT OF 1933,
or any successor thereto, as from time to time amended, and the rules,
regulations and forms from time to time promulgated thereunder.

         "U.S. SECURITIES LAWS" means, collectively, the U.S. Securities Act,
the U.S. Exchange Act and such other federal statutes of the United States and
state "BLUE SKY" laws as contemplated by SECTION 2.3(a)(ix) from time to time in
effect relating to the regulation of securities markets and trading in
securities and the respective rules, regulations and forms from time to time
promulgated thereunder.

         "WARRANTS" means the common stock purchase warrants issued or to be
issued to Buyer from time to time pursuant to the Warrant Purchase Agreement.

         "WARRANT PURCHASE AGREEMENT" means each Warrant Purchase Agreement
dated the date hereof between the Company and each Buyer.

         (b) Unless the context otherwise requires, any reference herein to any
Preliminary Prospectus, Prospectus, Supplemental PREP Prospectus or Registration
Statement as of any time shall include any amendment or supplement thereto and
any document incorporated or deemed to be incorporated by reference therein as
of such time.

         (c) Unless the context otherwise requires, any reference herein to a
"SECTION" or "CLAUSE" refers to a Section or clause, as the case may be, of this
Agreement, and the words "HEREIN" "HEREOF" and other words of similar import
refer to this Agreement as a whole and not to any particular Section or other
subdivision.

            ARTICLE II--REGISTRATION UNDER APPLICABLE SECURITIES LAWS
                        ---------------------------------------------

         SECTION 2.1. DEMAND REGISTRATION.

         (a) REQUEST FOR SHELF REGISTRATION. Subject to the provisions of this
SECTION 2.1, upon the written request (a "SHELF DEMAND REGISTRATION NOTICE") of
any Securityholder, given to the Company at any time until such time as such
Securityholder and its affiliates no longer beneficially own (including Common
Shares issuable pursuant to Warrants) at least 5% of the outstanding Common
Shares, that the Company register some or all of the Registrable Shares held at
such time by the Requesting Securityholder and any other Securityholder
requesting registration of any of its Registrable Shares (each of which shall
join in such request by signing the Demand Registration Notice, and all of which
together with the Requesting Securityholder, are collectively referred to in
this Agreement (other than SECTION 2.2) as the "PARTICIPATING SECURITYHOLDERS")
pursuant to Rule 415 promulgated under the U.S. Securities Act providing for the
sale by the Participating Securityholders of their respective Registrable Shares
(such registration statement, the "SHELF REGISTRATION STATEMENT"). The Company
shall give prompt written notice to all holders of Registrable Shares of the
Shelf Demand Registration Notice, and each holder of Registrable Shares who

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wished to include all or a portion of such holder's Registrable Shares in the
Shelf Demand registration Statement (each such holder including shares of
Registrable Securities in such registration also a Participating Securityholder)
shall so notify the Company within 15 days after the receipt by the holder of
the notice from the Company. Upon any such request, each Participating
Securityholder shall be entitled to have their Registrable Securities included
in the Shelf Registration Statement. The Participating Securityholders may, at
their option, request that the Company file the Shelf Registration Statement
using Form S-3, if such form is available for use by the Company. The Company
shall use its best efforts to file the Shelf Registration Statement at the
earliest practicable date, but in any event not later than 90 days after the
Shelf Demand Registration Notice is received by the Company, and use its best
efforts to have the Shelf Registration Statement thereafter declared effective
by the SEC at the earliest practicable date. The Company agrees to use its best
efforts to keep the Shelf Registration Statement continuously effective for a
period beginning on the date on which the Shelf Registration Statement is
declared effective by the SEC until the earlier to occur of (i) five years and
six months after November 30, 2006, (ii) the day after the date on which all of
the Common Shares covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement, or (iii) the first date on which
there shall cease to be any Common Shares covered by the Shelf Registration
Statement. The Company further agrees, if necessary, to supplement or amend the
Shelf Registration Statement, if required by the rules, regulations, or
instructions applicable to the registration form used by the Company or by the
U.S. Securities Act or by any other rules and regulations thereunder for shelf
registration, and the Company agrees to furnish to the Participating
Securityholders whose Common Shares are included in the Shelf Registration
Statement copies of any such supplement or amendment promptly after its issuance
or filing with the SEC.

         (b) NUMBER OF DEMAND REGISTRATIONS. Subject to the other provisions of
this SECTION 2A, the Company shall not be required to effect more than two
demand registrations pursuant to this SECTION 2.1 in any 12 month period
following the date hereof without regard to the Securityholder making such
request.

         (c) REGISTRATION OF OTHER SECURITIES. In connection with any
registration of Registrable Shares to be effected by the Company pursuant to
this SECTION 2.1, the Company may include securities other than Registrable
Shares among the securities covered by such registration.

         (d) EFFECTIVENESS. A demand registration requested pursuant to this
SECTION 2.1 shall not be deemed to have been effected and will not be considered
to be a demand registration which may be requested by the Securityholders
pursuant to this SECTION 2.1 where: (i) such registration has not become
effective; or (ii) if such registration has become effective, it does not remain
effective until five years and six months after November 30, 2006, or such
registration is interfered with by any cease trading or stop order, injunction
or other order or requirement of any of the Securities Commissions or other
governmental agency or court for any reason (other than as a result of any act
or omission or alleged act or omission of any of the Participating
Securityholders or any of the underwriters in respect of the distribution
relating to such registration) and has not thereafter become effective and,
thereafter, it does not remain effective until five years and six months after
November 30, 2006.

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<PAGE>

         (e) POSTPONEMENTS. The Company shall be entitled to postpone for a
reasonable period of time (but not exceeding 21 days) the filing of any
Registration Document or the effectiveness of any registration otherwise
required pursuant hereto if the Board of Directors determines in good faith,
based on the advice of counsel, that it is in possession of material information
that has not been disclosed to the public and that the disclosure of such
information at such time in a Registration Document would be seriously
detrimental to the Company, and, in any such case the Company will promptly give
the Requesting Securityholder written notice of such determination containing an
approximation of the anticipated period of time of such postponement, provided
that the Company shall only be entitled to one such postponement in any three
year period.

         SECTION 2.2. INCIDENTAL REGISTRATION.

         (a) RIGHT TO INCLUDE REGISTRABLE SHARES.

                  (i) If the Company, at any time before the Termination Date,
         proposes to register any securities of the Company, whether for its own
         account or for the account of one or more security holders of the
         Company by way of any registration form that may be used for
         registration of Registrable Securities, the Company will, subject to
         SECTION 2.2(b), give written notice (a "PROPOSED REGISTRATION NOTICE")
         to the Securityholders of such proposal at least 15 Business Days prior
         to the filing of any Registration Document relating to such proposed
         registration. The Proposed Registration Notice shall include the
         particulars of the proposed offering, if available, including the
         Qualifying Jurisdictions, in which such registration is to be effected,
         the estimated number of securities of the Company proposed to be
         issued, the range of the estimated offering price per security of the
         Company, the proposed plan of distribution and the proposed terms of
         the underwriting arrangements, if any. The Company shall also provide
         to the Securityholders any current draft Preliminary Prospectus, if
         available, and any current draft underwriting agreement, if available,
         relating to the proposed offering. Subject to the provisions of this
         SECTION 2.2, upon the written request (an "INCIDENTAL REGISTRATION
         NOTICE") of any Securityholder, given to the Company within, in the
         case of a "BOUGHT DEAL", 15 Business Days, and otherwise, 10 Business
         Days after the receipt of the Proposed Registration Notice, that the
         Company register some or all of the Registrable Shares held at such
         time by the Requesting Securityholder and any other Securityholder
         requesting registration of any of its Registrable Shares at that time
         (each of which shall join in such request by signing the Incidental
         Registration Notice, and all of which, together with the Requesting
         Securityholder, are collectively referred to in this Agreement (other
         than SECTION 2.1(a) as the "PARTICIPATING SECURITYHOLDERS") the Company
         will use its commercially reasonable efforts to register such
         Registrable Shares and cause such registration to become effective
         under the Applicable Securities Laws, so as to permit the resale and
         distribution of such Registrable Shares to be effected in the
         Qualifying Jurisdictions in accordance with the Applicable Securities
         Laws in such manner as the Requesting Securityholder may reasonably
         designate in connection with such proposed offering by the Company. The
         Incidental Registration Notice shall specify the number of Registrable
         Shares to be registered and the intended manner of disposition thereof.

                                      -9-

<PAGE>

                  (ii) If the Company, at any time after it has given a Proposed
         Registration Notice, determines for any reason not to proceed with or
         to delay the registration specified in such Proposed Registration
         Notice, the Company will promptly give the Requesting Securityholder
         written notice of such determination and, thereupon, (i) in the case of
         a determination not to proceed with such registration, the Company
         shall be relieved of its obligations hereunder to register any
         Registrable Shares in connection with such registration, and (ii) in
         the case of a determination to delay such registration, the Company
         shall be permitted to delay registering any Registrable Shares for the
         same period as the delay in such registration. No registration of
         Registrable Shares effected under this SECTION 2.2 shall, subject to
         SECTION 2.1, relieve the Company of its obligations with respect to any
         demand registration which may be requested by the Securityholders
         pursuant to SECTION 2.1.

         (b) PRIORITY IN INCIDENTAL REGISTRATIONS. If the Company is advised by
letter by the managing underwriter in respect of the proposed offering relating
to a registration specified in a Proposed Registration Notice of the managing
underwriter's belief that the resale and distribution of the Registrable Shares
to be included in such registration could materially adversely affect its
ability to effect such offering, the Company will be required to include in such
registration only that number of Registrable Shares, if any, that such letter
states may be so included without having such effect, and, in such case, the
Company will promptly give the Participating Securityholders written notice of
such advice (such notice to state the basis of such belief and the approximate
number of such securities which may be so included without having such effect)
and the Participating Securityholders shall allocate the Registrable Shares
among themselves on a pro rata basis based on the number of Registrable Shares
of each Participating Securityholder requested to be included in such offering.

         SECTION 2.3. REGISTRATION PROCEDURES. In connection with the Company's
obligations pursuant to SECTION 2.1 and SECTION 2.2, the Company will use its
commercially reasonable efforts to cause any registration of Registrable Shares
required thereunder to become effective under the Applicable Securities Laws so
as to permit the resale and distribution of such Registrable Shares to be
effected in the Qualifying Jurisdictions in accordance with the Applicable
Securities Laws in the manner designated by the Requesting Securityholder
pursuant hereto.

         (a) Without limiting the generality of the foregoing, the Company will
as expeditiously as possible:

                  (i) prepare, approve and file with each Securities Commission
         the Registration Documents (but in no event later than 90 days after a
         request is received from any Participating Securityholder) and use its
         commercially reasonable efforts to cause such registration to become
         effective (but in any event not later than 120 days after a request is
         received from any Participating Securityholder) and to remain
         continuously effective for such period as may be reasonably necessary
         to effect the resale and distribution of such Registrable Shares in the
         manner designated by the Requesting Securityholder pursuant hereto,
         provided that the Company shall have no obligation to maintain the
         effectiveness of such registration after five years and six months
         after November 30, 2006, and provided further that the time periods set
         forth in the Registration Rights Agreement by and among the Company,
         each subscriber thereunder, D&D Securities Company, Energy Capital
         Solutions, LLC, Octagon Capital Corporation, and the holders of the
         Lender Warrants, as defined therein, and not the time periods set forth
         in this SECTION 2.3(a)(i), shall apply to the Company's initial
         registration of its securities;

                                      -10-

<PAGE>

                  (ii) if requested by the Requesting Securityholder, promptly
         incorporate in a Supplemental PREP Prospectus such PREP Information as
         the Requesting Securityholder agrees should be included therein
         relating to the resale and distribution of such Registrable Shares,
         promptly make all required filings of such Supplemental PREP Prospectus
         as soon as practicable following receipt of such PREP Information, and
         supplement or make amendments to any Registration Document relating to
         the manner of resale and distribution of such Registrable Shares if
         requested by the Requesting Securityholder;

                  (iii) prior to filing a Registration Document, furnish to the
         Participating Securityholders, copies of such Registration Document as
         is proposed to be filed or delivered, and thereafter furnish to the
         Participating Securityholders, such number of copies of such
         Registration Document (in each case including all exhibits thereto and
         all documents incorporated by reference therein) and such other
         documents as the Participating Securityholders may reasonably request
         in order to facilitate the intended transaction and such Participating
         Securityholders shall have the opportunity to object to any information
         pertaining to any such Participating Securityholder that is contained
         therein and the Company will make the corrections reasonable and
         promptly requested by such Participating Securityholders with respect
         to such information prior to filing any Registration Document or
         amendment thereto;

                  (iv) notify the Participating Securityholders promptly, and
         (if requested by any such person) confirm such advice in writing:

                           A. when any Registration Document has been filed and
                  when such registration has become effective;

                           B. of any request received by the Company from any
                  Securities Commission for any amendment or supplement to any
                  Registration Document or for additional information;

                           C. when the Company receives notification of the
                  issuance by any Securities Commission of any cease trading or
                  stop order suspending the effectiveness of such registration
                  or the initiation of any proceedings for that purpose;

                           D. if at any time the representations and warranties
                  of the Company made as contemplated in the last paragraph of
                  this SECTION 2.3 cease to be true and correct in all material
                  respects;

                                      -11-

<PAGE>

                           E. of the occurrence of any material change which
                  requires the making of any amendment to any Registration
                  Document so that such document will not contain any
                  misrepresentation; and

                           F. of the Company's reasonable determination that any
                  amendment to any Registration Document would be appropriate;

                  (v) make available for inspection or examination by the
         Participating Securityholders and any solicitor, accountant, reserve
         engineer or other professional retained by the Participating
         Securityholders (collectively, the "PROFESSIONALS"), the officers,
         employees, advisors and consultants of the Company, and all financial
         and other records, pertinent corporate documents and properties of the
         Company (collectively, the "RECORDS") as shall be reasonably necessary
         to enable the Participating Securityholders, and the Professionals to
         complete their respective due diligence and cause the Company's
         officers, directors or employees to supply all information reasonably
         requested by any Professionals in connection with such Registration
         Document. Records which the Company determines, in good faith, to be
         confidential and which it notifies the Participating Securityholders,
         or the Professionals are confidential shall not be disclosed by the
         Participating Securityholders, the Underwriters or the Professionals
         unless and to the extent the disclosure of such Records would be
         required under the Applicable Securities Laws. The Participating
         Securityholders agrees that information obtained by them as a result of
         such inspection shall not be used except for the purpose of fulfilling
         their due diligence obligations;

                  (vi) promptly use its commercially reasonable efforts to
         prevent the issuance of any cease trading, stop or other order
         suspending the effectiveness of such registration, and, if any such
         order should be issued, to obtain the withdrawal of such order;

                  (vii) furnish to each Participating Securityholder such number
         of conformed copies of the Registration Documents, including all
         documents incorporated therein by reference, all exhibits thereto, all
         correspondence from a Securities Commission or other governmental
         agency, each letter written by or on behalf of the Company to a
         Securities Commission and such other documents as the Requesting
         Securityholder may reasonably request in order to facilitate the resale
         and distribution of such Registrable Shares;

                  (viii) prior to any public offering of such Registrable
         Shares, unless appropriate exemptions are available, qualify or
         register such Registrable Shares for offer and sale under the
         securities or "BLUE SKY" laws of such states of the United States as
         the Requesting Securityholder reasonably requests, keep each such
         qualification or registration effective during the period beginning on
         the date of such registration and ending five years and six months
         after November 30, 2006, and do any and all other acts or things which
         may be necessary or advisable to enable the disposition in such
         jurisdictions of such Registrable Shares, provided that the Company
         shall not be required for any such purpose to qualify generally to do
         business as a foreign corporation in any such jurisdiction, consent to
         general service of process in any such jurisdiction (other than in
         connection with such offering) or make any changes to its constituent
         documents or any agreement between it and its Securityholders;

                                      -12-

<PAGE>

                  (ix) upon the occurrence of any event contemplated by SECTION
         2.3(a)(iv)(e), prepare and file a supplement or amendment to the
         applicable Registration Document or any document incorporated therein
         by reference or file any other required document so that, as thereafter
         delivered to the prospective purchasers of such Registrable Shares, the
         applicable Registration Document will not contain any
         misrepresentation;

                  (x) with respect to underwritten offerings, enter into such
         agreements (including an underwriting agreement) and take all such
         other actions in connection therewith as may be reasonably necessary in
         order to facilitate the disposition of such Registrable Shares and in
         such connection: (i) make such representations and warranties to the
         Participating Securityholders and the managing underwriters with
         respect to the Registration Documents in form, scope and substance as
         are customarily made by the Company to underwriters in underwritten
         offerings of Common Shares made by the Company in Canada or the United
         States, as the case may be, and confirm the same if and when requested;
         (ii) enter into an underwriting agreement in form, scope and substance
         as is customary in underwritten offerings of Common Shares made by the
         Company in Canada or the United States, as the case may be; (iii)
         obtain and furnish to each Participating Securityholder and the
         managing underwriters opinions of counsel and auditors to the Company
         and updates thereof with respect to the Registration Documents in form,
         scope and substance as are customarily made by such counsel in
         underwritten offerings of Common Shares made by the Company in Canada
         or the United States, as the case may be, including any translation
         opinions required in respect of any French language Prospectus filed
         with any Canadian Securities Commission; (iv) obtain and furnish to
         each Participating Securityholder and the managing underwriters a
         comfort letter, dated the later of the date of the Prospectus and, if
         the PREP Procedures are applicable, the date of the Supplemental PREP
         Prospectus and brought forward to a date prior to the date of closing
         as required under such underwriting agreement signed by the independent
         chartered accountants or certified public accountants who have audited
         the Company's financial statements included or incorporated by
         reference in such Registration Document, covering substantially the
         same matters with respect to such Registration Document and with
         respect to events subsequent to the date of such financial statements
         as are or would be customarily covered in "COMFORT" letters delivered
         by the Company's auditors to underwriters in underwritten public
         offerings of Common Shares made by the Company in Canada or the United
         States, as the case may be; (v) ensure that included in such
         underwriting agreement are the indemnification provisions and
         procedures of SECTION 2.6 with respect to all parties to be indemnified
         pursuant thereto; and (vi) deliver such documents and certificates as
         may be reasonably requested by the Requesting Securityholder and the
         managing underwriters to evidence compliance with this clause (x) and
         with any customary conditions contained in such underwriting agreement;
         all of the above to be done at the closing under such underwriting
         agreement or as and to the extent required thereunder;

                  (xi) provide a transfer agent and registrar for all such
         Registrable Securities not later than the effective date of such
         Registration Document;

                  (xii) cooperate with the Participating Securityholders and the
         managing underwriters to facilitate the timely preparation and delivery
         of certificates representing

                                      -13-

<PAGE>

                  Registrable Shares to be sold, not bearing any restrictive
         legends, and enable such certificates to be in such denominations and
         registered in such names as the managing underwriters may request at
         least two Business Days prior to any sale of such Registrable Shares;

                  (xiii) comply with all Applicable Securities Laws and make
         generally available to its securityholders, as soon as practicable but
         no later than 18 months after the effective time of any registration
         under the U.S. Securities Act, an earnings statement of the Company and
         its subsidiaries complying with Section 11(a) of the U.S. Securities
         Act (including Rule 158 thereunder); and

                  (xiv) use commercially reasonable efforts to cause all such
         Registrable Securities to be listed on each securities exchange on
         which securities of the same class issued by the Company are then
         listed or, if no such similar securities are then listed, on The NASDAQ
         Stock Market or a national securities exchange selected by the Company.

         (b) The Company may require each Participating Securityholder to
furnish to the Company in writing such information regarding itself and the
distribution of such Registrable Shares as the Company may from time to time
reasonably request in order to comply with the Applicable Securities Laws. Each
Participating Securityholder agrees to notify the Company in writing as promptly
as practicable of any inaccuracy or change in information previously furnished
by such Participating Securityholder to the Company or of the occurrence of any
event, in either case as a result of which any Registration Document relating to
such registration contains any misrepresentation regarding such Participating
Securityholder or the distribution of such Registrable Shares, and to promptly
furnish to the Company in writing any additional information required to correct
and update any previously furnished information or required such that such
Registration Document shall not contain, with respect to such Participating
Securityholder or the distribution of such Registrable Shares, any
misrepresentation.

         (c) Upon receipt of any notice from the Company of the occurrence of
any event of the kind described in SECTION 2.3(iv)(B), (C), (E), OR (F), each
Participating Securityholder shall be required to forthwith discontinue
disposition and distribution of such Registrable Shares for a reasonable length
of time not to exceed 60 days until such Participating Securityholder receives
the copies of the supplement or amendment to the applicable Registration
Document, or until it is advised in writing by the Company that the use of the
applicable Registration Document may be resumed and it has received copies of
any additional or supplemental filings which are incorporated by reference in
such Registration Document, and, if so directed by the Company, such
Participating Securityholder will deliver to the Company (at the Company's
expense) all copies, other than permanent file copies then in such Participating
Securityholder's possession, of the Registration Documents current at the time
of receipt of such notice.

         (d) The Company agrees that the delivery to an underwriter, pursuant to
the foregoing provisions, of any Registration Document shall constitute the
representation and warranty by the Company to such underwriter and to the
Participating Securityholders that all information and statements (except
information or statements relating solely to such underwriter or the
Participating Securityholders) contained in such Registration Document are, at
the date of delivery, true and correct in all material respects, contain no
misrepresentation and constitute full, true and plain disclosure of all material

                                      -14-

<PAGE>

facts relating to the Company and its subsidiaries. The Company also agrees that
such respective deliveries shall also constitute the consent of the Company to
the use by such underwriter of the Registration Documents in connection with the
offer for sale, sale or distribution of the Registrable Shares then being sold
and distributed in compliance with the relevant provisions of such underwriting
agreement, this Agreement and Applicable Securities Laws.

         (e) No Registration Document shall contain any misrepresentation or
untrue statement of a material fact or omit to state a material fact required to
be stated therein, or necessary to make the statements therein not misleading
(except, with respect to any Participating Securityholder, for an untrue
statement or alleged untrue statement of a material fact or omission or alleged
omission of a material fact made in reliance on and in conformity with written
information furnished to the Company by or on behalf of such Participating
Securityholder specifically for use therein).

         SECTION 2.4. INCIDENTAL UNDERWRITTEN OFFERINGS. In any distribution
pursuant to which incidental registration is requested under SECTION 2.2 the
Company will, if requested by the Requesting Securityholder in the Incidental
Registration Notice relating to such request and subject to SECTION 2.2(b),
arrange for the underwriters in respect of the proposed offering of the Company
relating to such request to include all of the Registrable Shares to be resold
by the Participating Securityholders among the securities of the Company to be
distributed by such underwriters under such offering, and the Participating
Securityholders shall be parties to the underwriting agreement between the
Company and all of the representations and warranties by, and the other
agreements on the part of, the Company to and for the benefit of such
underwriters shall also be made to and for the benefit of the Participating
Securityholders and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement shall be
conditions precedent to the obligations of the Participating Securityholders.
None of the Participating Securityholders shall be required to make any
representations or warranties to or agreements with the Company or such
underwriters other than representations, warranties or agreements regarding such
Participating Securityholder, such Participating Securityholders' Registrable
Shares and such Participating Securityholders' intended method of distribution
as are customarily required and any other representation required by law.

         SECTION 2.5. PREPARATION; REASONABLE INVESTIGATION. In connection with
the preparation and filing of each Registration Document under the Applicable
Securities Laws pursuant to this Agreement, the Company will give the Requesting
Securityholder and its counsel the opportunity to participate in the preparation
of such Registration Document and will give each of them such access to its
books and records and such opportunities to discuss the business of the Company
with its officers and independent chartered accountants who have audited its
financial statements as shall be necessary, in the opinion of such counsel,
acting reasonably, to conduct a reasonable investigation within the meaning of
the Applicable Securities Laws, provided that each such person shall be required
to maintain in confidence and not to disclose to any other person any
information or documents designated by the Company as being confidential until
such time as such information becomes a matter of public record (whether by
virtue of its inclusion in the Registration Documents or otherwise) or such
person shall be required so to disclose such information pursuant to Applicable
Securities Laws or an order of any court or governmental agency or other body
having jurisdiction (subject to the requirements of such order, and only after
such person shall have given the Company prompt prior written notice of such
requirement).

                                      -15-

<PAGE>

         SECTION 2.6. INDEMNIFICATION

         (a) INDEMNIFICATION BY THE COMPANY. The Company will indemnify and hold
harmless each of the Participating Securityholders and each underwriter which
participates in any offering or sale of Registrable Shares registered hereunder
against any losses, claims, damages or liabilities, joint or several, to which
such person may become subject under the Applicable Securities Laws or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon a misrepresentation or an
alleged misrepresentation contained in any Registration Document under which
such Registrable Shares were registered hereunder, and will reimburse such
person for any legal or other expenses reasonably incurred by it in connection
with investigating or defending any such action or claim as such expenses are
incurred, provided that the Company shall not be liable to any such person in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon a misrepresentation or an alleged
misrepresentation made in any such Registration Document in reliance upon and in
conformity with written information furnished to the Company by such person
expressly for use therein.

         (b) INDEMNIFICATION BY THE PARTICIPATING SECURITYHOLDERS. The Company
may require, as a condition to registering any Registrable Shares hereunder and
to entering into any underwriting agreement with respect thereto, that the
Company shall have received an undertaking reasonably satisfactory to it from
each of the Participating Securityholders, severally and not jointly, to:

                  (i) indemnify and hold harmless the Company against any
         losses, claims, damages or liabilities to which the Company may become
         subject under the Applicable Securities Laws or otherwise, insofar as
         such losses, claims, damages or liabilities (or actions in respect
         thereof) arise out of or are based upon a misrepresentation or an
         alleged misrepresentation contained in any Registration Document under
         which such Registrable Shares were registered hereunder, but only to
         the extent that such misrepresentation or alleged misrepresentation was
         made in reliance upon and in conformity with written information
         furnished to the Company by such person expressly for use therein and

                  (ii) reimburse the Company for any legal or other expenses
         reasonably incurred by the Company in connection with investigating or
         defending any such action or claim as such expenses are incurred,
         provided that no such Participating Securityholder shall be required to
         undertake liability to any person under this SECTION 2.6(b) for any
         amounts in excess of the amount of the proceeds to be received by such
         Participating Securityholder from the sale of such Registrable Shares
         pursuant to such registration in such case as reduced by any damages,
         penalties or other amounts that such Participating Securityholder is or
         was otherwise required to pay by reason of such misrepresentation or
         alleged misrepresentation.

                                      -16-

<PAGE>

         (c) NOTICES OF CLAIMS, ETC. Promptly after receipt by an indemnified
party of notice of the commencement of any action, proceeding, investigation or
threat thereof involving a claim referred to in SECTION 2.6(a) or SECTION
2.6(b), such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party pursuant to the indemnification provisions of
or contemplated by this SECTION 2.6, notify such indemnifying party in writing
of the commencement of such action, but the omission so to notify the
indemnifying party shall not relieve it from any liability which it may have to
any indemnified party otherwise than under the indemnification provisions of or
contemplated by SECTION 2.6(a) or SECTION 2.6(b) hereof. In case any such action
shall be brought against any indemnified party, the indemnified party shall
notify an indemnifying party of the commencement thereof, unless in the
reasonable judgment of such indemnified party a conflict of interest shall exist
between such indemnified party and the indemnifying party with respect to such
action such indemnifying party shall be entitled to participate therein and, to
the extent that it shall wish, jointly with any other indemnifying party
similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party, be counsel to the indemnifying party), and, after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, such indemnifying party shall not be liable to
such indemnified party for any legal expenses of other counsel or other
expenses, in each case subsequently incurred by such indemnified party, in
connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the written consent of the
indemnified party, effect the settlement or compromise of, or consent to the
entry of any judgment with respect to, any pending or threatened action or claim
in respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability arising out of
such action or claim, (ii) does not provide for a remedy other than the payment
of money damages, and (iii) does not include a statement as to or an admission
of fault, culpability or a failure to act by or on behalf of any indemnified
party.

         (d) CONTRIBUTION. If for any reason the indemnification provisions
contemplated by SECTION 2.6(a) and SECTION 2.6(b) are unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
claims, damages or liabilities (or actions in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the indemnifying party and the indemnified
party in connection with the misrepresentation which results in such losses,
claims, damages or liabilities (or actions in respect thereof), 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 the misrepresentation or alleged misrepresentation relates to
information supplied by such indemnifying party or by such indemnified party,
and the parties relative intent, knowledge, access to information and
opportunity to correct or prevent such misrepresentation. The parties hereto
agree that it would not be just and equitable if contributions pursuant to this
SECTION 2.6(d) were determined by pro rata allocation (even if the Participating
Securityholders or any underwriters or all of them were treated as one entity
for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in this SECTION 2.6(d). The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, or liabilities (or actions in respect thereof) referred to

                                      -17-

<PAGE>

above shall be deemed to include any legal or other fees or expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any such action or claim. Notwithstanding the provisions of this SECTION 2.6(d),
no Participating Securityholder shall be required to contribute any amount in
excess of the amount by which the amount of the proceeds received by such
Participating Securityholder from the sale of any Registrable Shares exceeds the
amount of any damages or penalties which such Participating Securityholder has
otherwise been required to pay by reason of such misrepresentation or alleged
misrepresentation, and no underwriter shall be required to contribute any amount
in excess of the amount by which the total price at which the Registrable Shares
underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages which such underwriter has otherwise been
required to pay by reason of such misrepresentation or alleged
misrepresentation. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the U.S. Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Participating Securityholders' and any underwriters'
obligations in this SECTION 2.6(d) to contribute shall be several in proportion
to the number of Registrable Shares registered or underwritten, as the case may
be, by them and not joint.

         (e) OTHER RIGHTS, LIABILITIES. The obligations of the Company under
this SECTION 2.6 shall be in addition to any liability which the Company may
otherwise have and shall extend, upon the same terms and conditions, to each
officer, director, partner and agent of each Participating Securityholder and
underwriter and each person, if any, who controls any Participating
Securityholder or underwriter within the meaning of the Applicable Securities
Laws, and the obligations of the Participating Securityholders and any
underwriters contemplated by this SECTION 2.6 shall be in addition to any
liability which the respective Participating Securityholder or underwriter may
otherwise have and shall extend, upon the same terms and conditions, to each
officer and director of the Company, including any person who, with his consent,
is named in any Registration Document as about to become a director of the
Company and to each person if any, who controls the Company within the meaning
of the Applicable Securities Laws.

         SECTION 2.7. ADJUSTMENTS AFFECTING REGISTRABLE SHARES. During any
period commencing on either: (i) the date on which a request for demand
registration has been made pursuant to SECTION 2.1(a), or (ii) the date on which
a request for incidental registration has been made pursuant to SECTION 2.2(a)
and, in either event, terminating on the date which is the earlier of: (A) the
date which is five years and six months after November 30, 2006; (B) the date on
which all Registrable Shares registered hereunder are sold or disposed of; and
(C) the date on which such request is withdrawn or the registration relating
thereto is otherwise not effected pursuant hereto, the Company will not effect
or permit to occur, or announce any future intent to effect or permit to occur,
any consolidation or subdivision of the Common Shares which would materially
adversely affect the ability of the Securityholders to register Registrable
Shares hereunder or the marketability of Registrable Shares under any such
registration.

         SECTION 2.8. EXPENSES. The Company shall bear and pay all costs, fees
and expenses of or incidental to the registration and distribution of the
Registrable Shares, including, without limitation, all registration and filing
fees (including fees with respect to filings required to be made with any stock
exchange and the NASD and applicable U.S. state "BLUE SKY" laws), reasonable
fees and disbursements of counsel for the Company, the auditors of the Company
and any other reasonable and standard special experts or advisors retained by

                                      -18-

<PAGE>

the Company in connection therewith, word processing, translation, duplicating
and printing expenses, messenger, telephone and delivery expenses, expenses in
connection with the preparation and printing of share certificates and the fees
and expenses of the transfer agent and registrar for the classes of securities
in the Registrable Shares, fees and disbursements of counsel for any of the
Participating Securityholders, expenses in connection with the preparation of
audio-visual material, marketing documents and other marketing devices and
associated with marketing and information meetings, and all other costs, fees
and expenses of or incidental to the sale of the Registrable Shares, whether or
not any registration of the Registrable Shares becomes effective; provided,
however, that the Company shall not bear or pay any expenses related to the
underwriters' fees and disbursements (including discounts, commissions, fees of
underwriters relating to the distribution of the Registrable Shares).

                        ARTICLE III--ADDITIONAL COVENANTS
                                     --------------------

         SECTION 3.1. POP SYSTEM ELIGIBILITY. The Company will use reasonable
commercial efforts to maintain its ability to issue its securities under the POP
System.

         SECTION 3.2. OTHER REGISTRATION RIGHTS. The Company covenants that it
will not grant to any person any right of registration under the Applicable
Securities Laws relating to any Common Shares other than pursuant to this
Agreement, unless, subject to SECTION 2.1(c), the rights so granted to such
person do not limit or restrict the Securityholders' right to request demand
registration as provided for in SECTION 2.1 at such times as the Securityholders
determine in their sole judgment.

         SECTION 3.3. RULE 144 AND RULE 144A.

         (a) The Company hereby covenants that the Company shall timely file the
reports and other documents required to be filed by it under all U.S. Securities
Laws (including but not limited to the reports under Sections 13 and 15(d) of
the U.S. Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by
the SEC and the rules and regulations adopted by the SEC thereunder (or, if the
Company is not required to file such reports, will, upon the request of any
Securityholder, make publicly available such other information including as
provided in Rule 144(c)(2) and 144A(d)) and will take such further action as any
Securityholder may reasonably request, all to the extent required from time to
time to enable such holder to sell securities of the Company in compliance with
applicable U.S. "BLUE SKY" laws and without registration under the U.S.
Securities Laws within the limitation of the exemptions provided by Rule 144 or
144A, as such Rule may be amended from time to time; or

                  (ii) any similar rule or regulation hereafter adopted by the
         SEC. Upon the request of any Securityholder, the Company will deliver
         to such holder a written statement as to whether it has complied with
         such requirements along with a copy of the most recent annual or
         quarterly report (if any) of the Company and such other reports as may
         be reasonably requested by Buyer.

         (b) If the Company, at any time after the date hereof, proposes to sell
any securities of the Company in connection with a proposed issue and sale of
such securities by the Company by way of a placement pursuant to Rule 144A, the
Securityholders will have the right to include any or all of their Common Shares
in such placement upon substantially the same terms and conditions set forth in

                                      -19-

<PAGE>

SECTION 2.2 with respect to underwritten public offerings. If Securityholders
participate in such a Rule 144A placement, the costs, fees and expenses of such
Rule 144A placement, including those of the type described in SECTION 2.8, shall
be allocated pro rata among the Company and such Securityholders on the basis of
the respective value of the securities offered in such Rule 144A placement.

                            ARTICLE IV--MISCELLANEOUS
                                        -------------

         SECTION 4.1. CALCULATION OF TIME PERIODS. Unless otherwise specified
herein, the period of time within which or following which any act is to be done
or step taken pursuant to this Agreement shall be calculated by excluding the
day on which the period commences and including the day on which the period
ends. If the last day of such period is not a Business Day, the period in
question shall end on the next Business Day.

         SECTION 4.2. SEVERABILITY. If any provision of this Agreement or any
application thereof shall be declared or held to be invalid, illegal or
unenforceable in whole or in part whether generally or in any particular
jurisdiction, such provision shall be deemed to be amended to the extent
necessary to cure such invalidity, illegality or unenforceability, and the
validity, legality or enforceability of the remaining provisions of this
Agreement, both generally and in every other jurisdiction, shall not in any way
be affected or impaired thereby.

         SECTION 4.3. AMENDMENTS. No amendment or modification of this Agreement
shall be binding unless in writing and signed by all of the parties hereto.

         SECTION 4.4. WAIVER. No waiver by any party hereto of any breach of any
of the provisions of this Agreement shall take effect or be binding upon the
party unless in writing and signed by such party. Unless otherwise provided
therein, such waiver shall not limit or affect the rights of such party with
respect to any other breach.

         SECTION 4.5. TIME OF ESSENCE. Time shall be of the essence of this
Agreement.

         SECTION 4.6. FURTHER ACTS. The parties hereto agree to execute and
deliver such further and other documents and perform and cause to be performed
such further and other acts and things as may be reasonably necessary or
desirable in order to give full effect to this Agreement and every part thereof.

         SECTION 4.7. NOTICES. All notices, requests, demands, and other
communications required or permitted to be given or made hereunder by any party
hereto shall be in writing and shall be deemed to have been duly given or made
if delivered personally, or transmitted by first class registered or certified
mail, postage prepaid, return receipt requested, or sent by prepaid overnight
delivery service, or sent by facsimile, to the parties at the addresses and
facsimile numbers set forth opposite their name on the signature page hereof (or
at such other addresses and facsimile numbers as shall be specified by the
parties by like notice).

         SECTION 4.8. ENTIRE AGREEMENT. This Agreement, together with the
Warrant Purchase Agreement, constitute the entire agreement and supersede all
other prior agreements and understandings, both written and oral, between the
parties and their affiliates with respect to the subject matter hereof.

                                      -20-

<PAGE>

         SECTION 4.9. BINDING EFFECT; ASSIGNMENT. This Agreement shall be
binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors and permitted assigns. Buyer or any other
Securityholder may assign all or any part its rights and obligations hereunder
to any person. Any subsidiary of Buyer which holds Registrable Shares as a
Securityholder shall be entitled to exercise the rights, and in doing so shall
be subject to obligations of, Buyer hereunder, and Buyer holds as trustee for
such subsidiary the benefits of this Agreement.

         SECTION 4.10. DESCRIPTIVE HEADLINES. The descriptive headings of the
several Sections and clauses of this Agreement are inserted for reference only
and shall not limit or otherwise affect the meaning hereof.

         SECTION 4.11. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

         SECTION 4.12. CONSENT TO EXCLUSIVE JURISDICTION. ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST THE COMPANY ARISING OUT OF OR RELATING HERETO OR ANY
OTHER TRANSACTION DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN ANY
STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY
OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, THE COMPANY, FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND
UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN
ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO THE COMPANY AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SECTION 4.7; (d) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (c)
ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE COMPANY IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT; AND (e) AGREES BUYER RETAINS THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST THE
COMPANY IN THE COURTS OF ANY OTHER JURISDICTION.

         SECTION 4.13. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER TRANSACTION
DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER HEREOF.
THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL

                                      -21-

<PAGE>

DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF
THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS
AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP
THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND
THE WARRANT PURCHASE AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS
WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER
SPECIFICALLY REFERRING TO THIS SECTION 4.13 AND EXECUTED BY EACH OF THE PARTIES
HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER TRANSACTION DOCUMENTS OR
TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS HEREUNDER IN
THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A
TRIAL BY THE COURT.

         SECTION 4.14. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which when executed and delivered is an original
but all of which taken together constitute one and the same instrument and any
party may execute this Agreement by signing any counterpart of it.

       REMAINDER OF PAGE INTENTIONALLY LEFT BLANK--SIGNATURE PAGES FOLLOW

                                      -22-

<PAGE>

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

                                            THE COMPANY

                                            PACIFIC ENERGY RESOURCES LTD.

                                            By: /S/ DARREN KATIC
                                                --------------------------------
                                            Name:  Darren Katic
                                            Title:  President

                                            ADDRESS FOR NOTICE PURPOSES:

                                            111 West Ocean Blvd., Suite 1240
                                            Long Beach, California 90802
                                            Attention: Darren Katie, President
                                            Facsimile: 562-436-8474

                 SIGNATURE PAGE - REGISTRATION RIGHTS AGREEMENT

                                      -23-

<PAGE>

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

                                                   BUYER:

                                                   GOLDMAN SACHS & CO.

                                                   By:  /S/ COLLEEN KOSTER
                                                        ------------------------
                                                   Name:  Colleen Koster
                                                   Title: Authorized Signatory

                                                   ADDRESS FOR NOTICE PURPOSES:

                                                   c/o J. Aron & Company
                                                   85 Broad Street
                                                   New York, New York 10004
                                                   Attention: Steve Bunkin
                                                   Facsimile: 212-428-3675

                                                   with a copy to:

                                                   Goldman Sachs E&P Capital
                                                   1000 Louisiana, Suite 550
                                                   Houston, Texas 77002
                                                   Attention: John K. Howie
                                                   Facsimile: 713-658-2603

                 SIGNATURE PAGE - REGISTRATION RIGHTS AGREEMENT

                                      -24-

<PAGE>

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

                                                   BUYER:

                                                   SPCP GROUP, L.L.C.

                                                   By:  /S/ RICHARD PETRILLI
                                                        ------------------------
                                                   Name:  RICHARD PETRILLI
                                                          ----------------------
                                                   Title: AUTHORIZED SIGNATORY
                                                          ----------------------

                                                   ADDRESS FOR NOTICE PURPOSES:

                                                   do Silver Point Capital
                                                   Two Greenwich Plaza
                                                   Greenwich, Connecticut 06830
                                                   Attention: Tim Skoufis
                                                   Facsimile: (203) 542-4545

                                                   SPCP GROUP III LLC

                                                   By:  /S/ RICHARD PETRILLI
                                                        ------------------------
                                                   Name:  RICHARD PETRILLI
                                                          ----------------------
                                                   Title: AUTHORIZED SIGNATORY
                                                          ----------------------

                 SIGNATURE PAGE - REGISTRATION RIGHTS AGREEMENT

                                      -25-<PAGE>

EXHIBIT 4.5

                                                                  EXECUTION COPY

               SHARE ACQUISITION AND REGISTRATION RIGHTS AGREEMENT

         THIS SHARE ACQUISITION AND REGISTRATION RIGHTS AGREEMENT (this
"AGREEMENT") is entered into as of July 31, 2007 by and between Pacific Energy
Resources Ltd., a Delaware corporation (the "COMPANY"), and Forest Oil
Corporation, a New York corporation ("HOLDER").

                                    RECITALS

         A. The Company and the Holder are parties to an Asset Sales Agreement
dated as of May 24, 2007, as amended by a First Amendment to Asset Sales
Agreement dated as of July 31, 2007 ("ASA"), and a Membership Interest Purchase
Agreement dated as of May 24, 2007, as amended by a First Amendment to
Membership Interest Purchase Agreement dated as of July 31, 2007 ("MIPA").

         B. Pursuant to the ASA and the MIPA, as a portion of the consideration
for the Membership Interests (as defined in the MIPA) and certain Assets (as
defined in the ASA), the Holder will acquire up to 10,000,000 shares of Common
Stock of the Company. The shares of Common Stock acquired by the Holder pursuant
to the ASA and the MIPA are referred to herein as the "SHARES."

         C. The Shares, when issued pursuant to the ASA and the MIPA, will be
issued without registration under the 1933 Act (as defined below) and,
therefore, the resale thereof by the Holder of any Shares will be subject to
restrictions under the 1933 Act.

         D. The obligation of the Holder to acquire and the Company to issue the
Shares under the ASA and the MIPA is subject to the condition that the Company
and the Holder enter into this Agreement concurrently with the issuance of the
Shares to provide for (i) certain representations by the parties with respect to
the issuance of the Shares by the Company and their acquisition by the Holder
and (ii) registration rights with respect to the Shares in accordance with the
terms and conditions set forth in this Agreement.

                                    AGREEMENT

         In consideration of the mutual covenants and agreements set forth
herein, and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

1 DEFINITIONS. For purposes of this Agreement, the following terms have the
meanings specified with respect thereto below:

         "1933 ACT" means the Securities Act of 1933, as amended, and the rules
and regulations of the Commission thereunder, all as the same shall be in effect
at the time.

         "1934 ACT" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission thereunder, all as the same shall be
in effect at the time.

                                      -1-

<PAGE>

         "COMMISSION" means the Securities and Exchange Commission or any other
federal agency at the time administering the 1933 Act.

         "COMMON STOCK" means the common stock, $0.001 par value, of the
Company.

         "COMPANY" has the meaning set forth in the preamble of this Agreement.

         "HOLDER(S)" means Forest Oil Corporation, a New York corporation, and
any permitted transferee of Registrable Securities.

         "INDEMNIFIED PARTY" has the meaning specified in SECTION 4.3.

         "INDEMNIFYING PARTY" has the meaning specified in SECTION 4.3.

         "INSPECTORS" has the meaning specified in SECTION 3.1.8.

         "MAXIMUM NUMBERS OF SHARES" has the meaning specified in SECTION 2.2.

         "OTHER SHAREHOLDER" means any holder of shares of Common Stock or
securities convertible into or entitling the holder thereof to purchase Common
Stock who has Piggyback Registration rights which have been granted by the
Company; collectively, two or more such shareholders shall be referred to as
"OTHER SHAREHOLDERS."

         "PIGGYBACK REGISTRATION" has the meaning specified in SECTION 2.1.2.

         "PURCHASE AGREEMENT" has the meaning set forth in the recitals to this
Agreement.

         "RECORDS" has the meaning specified in SECTION 3.1.8.

         "REGISTRABLE SECURITIES" means, collectively, the Shares and any
securities issued or issuable upon any stock dividend, stock split,
recapitalization, merger, consolidation or similar event with respect to the
Shares. As to any particular Registrable Securities, such securities shall cease
to be Registrable Securities when (i) a registration statement covering such
securities shall have become effective under the 1933 Act and such securities
shall have been disposed of in accordance with such registration statement, (ii)
such securities shall have been distributed to the public pursuant to Rule 144
or Rule 144A (or any successor provisions) under the 1933 Act, or (iii) such
securities shall have ceased to be outstanding.

         "SHARES" has the meaning set forth in the recitals of this Agreement.

         "UNDERWRITER" means a securities dealer who purchases any Registrable
Securities as principal in an underwritten offering and not as part of such
dealer's market-making activities.

                                      -2-

<PAGE>

2 REGISTRATION RIGHTS.

         2.1 PIGGYBACK RIGHTS. If at any time after the date hereof, the Company
proposes to file a registration statement under the 1933 Act with respect to an
offering of equity securities, or securities convertible or exchangeable into
equity securities, by the Company for its own account other than a registration
statement (i) on Form S-4 or S-8 (or any substitute or successor form that may
be adopted by the Commission), (ii) filed in connection with any employee stock
option or other benefit plan, (iii) for an exchange offer or offering of
securities solely to the Company's existing shareholders, or (iv) for a dividend
reinvestment plan, then the Company shall:

                  (a) give written notice of such proposed filing to the Holder
         as soon as practicable but in no event less than 20 days before the
         anticipated filing date, which notice shall describe the amount and
         type of securities to be included in such offering, the intended
         method(s) of distribution, and the name of the proposed managing
         Underwriter or Underwriters, if any, of the offering; and

                  (b) offer in such notice to the Holder the opportunity to
         register such number of shares of Registrable Securities as the Holder
         may request in writing within 10 days following receipt of such notice
         (a "PIGGYBACK REGISTRATION"). The Company shall cause such Registrable
         Securities to be included in such registration and shall use its
         reasonable best efforts to cause the managing Underwriter or
         Underwriters of a proposed underwritten offering to permit the
         Registrable Securities requested to be included in a Piggyback
         Registration on the same terms and conditions as any similar securities
         of the Company and to permit the sale or other disposition of such
         Registrable Securities in accordance with the intended method of
         distribution thereof.

         2.2 REDUCTION OF OFFERING. If the managing Underwriter or Underwriters
for a Piggyback Registration that is to be an underwritten offering advises the
Company, the Holder and any Other Shareholders requesting inclusion in the
Piggyback Registration, in writing, that the dollar amount or number of shares
of Registrable Securities and other shares of Common Stock to be included in the
offering exceeds the maximum dollar amount or number that can be sold in such
offering without adversely affecting the proposed offering price, the timing,
the distribution method or the probability of success of such offering ("MAXIMUM
NUMBER OF SHARES"), then the Company shall include in such registration: (i)
first, the shares of Common Stock or other securities that the Company proposes
to sell which can be sold without exceeding the Maximum Number of Shares; and
(ii) second, to the extent the Maximum Number of Shares has not been reached
under the foregoing clause (i), the Registrable Securities as to which
registration has been requested by the Holder pursuant to its Piggyback
Registration rights and other shares of Common Stock requested to be included by
Other Shareholders pursuant to their registration rights (and pro rata among
them based on the number of shares requested to be registered except to the
extent the Company is contractually obligated to use another allocation method
pursuant to an agreement in effect on the date hereof) which can be sold without
exceeding the Maximum Number of Shares.

         2.3 WITHDRAWAL. The Holder may elect to withdraw its request for
inclusion of its Registrable Securities in any Piggyback Registration by giving
written notice to the Company of its request to withdraw prior to the
effectiveness of the registration statement. The Company may also elect to
withdraw a registration statement including shares being registered pursuant to
the Holder's Piggyback Registration rights at any time prior to the

                                      -3-

<PAGE>

effectiveness of the registration statement. Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the Holder in
connection with such Piggyback Registration as provided in SECTION 3.3.

         2.4 RULE 144 REPORTING. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the
Registrable Securities to the public without registration, the Company agrees to
use its commercially reasonable efforts to:

                  (a) Make and keep public information regarding the Company
         available, as those terms are understood and defined in Rule 144 under
         the Securities Act, at all times from and after the date hereof; and

                  (b) File with the Commission in a timely manner all reports
         and other documents required of the Company under the Exchange Act at
         all times from and after the date the Company first becomes subject to
         the reporting requirements of the Exchange Act.

         2.5 TRANSFER OR ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause
the Company to register Registrable Securities granted to the Purchasers by the
Company under this Article II may be transferred or assigned by Holder to one or
more transferee(s) or assignee(s) of such Registrable Securities; provided,
however, that each such transferee (i) acquires no less than 1,000,000 shares of
Registrable Securities and (ii) assumes in writing responsibility for its
portion of the obligations of Holder under this Agreement.

         2.6 LIMITATION ON SUBSEQUENT REGISTRATION RIGHTS. From and after the
date hereof, the Company shall not, without the prior written consent of the
Holders holding a majority of the outstanding Registrable Securities, enter into
any agreement with any current or future holder of any securities of the Company
that would allow such current or future holder to require the Company to include
securities in any registration statement filed by the Company on a basis other
than pari passu with, or subject to priority in favor of, the Registrable
Securities.

3 REGISTRATION PROCEDURES.

         3.1 FILINGS; INFORMATION. If and whenever the Company is required to
effect the registration of any Registrable Securities under the 1933 Act
pursuant to SECTION 2.1, the Company shall use its reasonable best efforts to
effect the registration of such Registrable Securities as expeditiously as
practicable, and in connection with any such request:

                  3.1.1 FILING REGISTRATION STATEMENT. The Company shall, as
         expeditiously as reasonably possible, prepare and file with the
         Commission a registration statement on any form for which the Company
         then qualifies or which counsel for the Company shall deem appropriate
         and which form shall be available for the sale of the Registrable
         Securities to be registered thereunder in accordance with the intended
         method of distribution thereof, and subject to SECTION 2.3, use its
         reasonable best efforts to cause such filed registration statement to
         become and remain effective.

                                      -4-

<PAGE>

                  3.1.2 COPIES. The Company shall, prior to filing a
         registration statement or prospectus or any amendment or supplement
         thereto, furnish without charge to the Holder, copies of such
         registration statement as proposed to be filed, each amendment and
         supplement to such registration statement (in each case including all
         exhibits thereto and documents incorporated by reference therein if
         requested by the Holder), the prospectus included in such registration
         statement (including each preliminary prospectus), and such other
         documents as the Holder may request in order to facilitate the
         disposition of the Registrable Securities owned by the Holder.

                  3.1.3 AMENDMENTS AND SUPPLEMENTS. The Company shall prepare
         and file with the Commission such amendments, including post-effective
         amendments, and supplements to such registration statement and the
         prospectus used in connection therewith as may be necessary to keep
         such registration statement effective and in compliance with the
         provisions of the 1933 Act until all Registrable Securities have been
         disposed of in accordance with the intended methods of disposition set
         forth in such registration statement (which period shall not exceed the
         sum of nine months plus any period during which any such disposition is
         interfered with by any stop order, injunction or other order or
         requirement of the Commission or any governmental agency or court) or
         such securities have been withdrawn.

                  3.1.4 NOTIFICATION. After the filing of the registration
         statement, the Company shall promptly, and in no event more than two
         Business Days, notify the Holder, and confirm such advice in writing,
         (i) when such registration statement becomes effective, (ii) when any
         post-effective amendment to such registration statement becomes
         effective, (iii) of any stop order issued or threatened by the
         Commission (and the Company shall take all actions required to prevent
         the entry of such stop order or to remove it if entered) and (iv) of
         any request by the Commission for any amendment or supplement to such
         registration statement or any prospectus relating thereto or for
         additional information or of the occurrence of an event requiring the
         preparation of a supplement or amendment to such prospectus so that, as
         thereafter delivered to the purchasers of the Registrable Securities
         covered by the Registration Statement, such prospectus will not contain
         an 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 not misleading and promptly make available to the Holder any
         such supplement or amendment; except that before filing with the
         Commission a registration statement or prospectus or any amendment or
         supplement thereto, including documents incorporated by reference, the
         Company shall furnish to the Holder and to legal counsel representing
         the Holder, copies of all such documents proposed to be filed
         sufficiently in advance of filing to provide the Holder, Underwriters
         and legal counsel with a reasonable opportunity to review such
         documents and comment thereon, and the Company shall reflect in any
         registration statement or prospectus or amendment or supplement thereto
         such comments as the Holder or legal counsel representing the Holder
         may propose on a timely basis with regard to the selling security
         holder information relating to the Holder; provided, however, that the
         Company shall make the final decision as to the form and content of
         each such document.

                  3.1.5 STATE SECURITIES LAWS COMPLIANCE. The Company shall use
         its reasonable best efforts to (i) register or qualify the Registrable
         Securities covered by the registration statement under such securities
         or blue sky laws of such jurisdictions in the United States as the
         Holder (in light of the Holder's intended plan of distribution)
         reasonably requests and (ii) cause the Registrable Securities covered
         by the registration statement to be registered with or approved by such

                                      -5-

<PAGE>

         other governmental agencies or authorities in the United States as may
         be necessary by virtue of the business and operations of the Company to
         enable the Holder to consummate the disposition of the Registrable
         Securities owned by the Holder in those jurisdictions; provided,
         however, that the Company shall not be required to qualify generally to
         do business in any jurisdiction where it would not otherwise be
         required to qualify but for this SECTION 3.1.5, or subject itself to
         taxation in any such jurisdiction.

                  3.1.6 AGREEMENTS FOR DISPOSITION. The Company shall enter into
         customary agreements (including, if applicable, an underwriting
         agreement in customary form) and take such other actions as are
         reasonably required in order to expedite or facilitate the disposition
         of such Registrable Securities. The Holder may, at its option, require
         that any or all of the representations, warranties and covenants of the
         Company in any underwriting agreement to or for the benefit of any
         Underwriters also be made to and for the benefit of the Holder. The
         Holder shall not be required to make any representations or warranties
         in the underwriting agreement except with respect to its organization,
         good standing, authority, title to Registrable Securities, lack of
         conflict of such sale with its material agreements and organizational
         documents, and with respect to written information relating to the
         Holder that the Holder has furnished expressly for inclusion in such
         registration statement.

                  3.1.7 COOPERATION. The Chief Executive Officer and President
         of the Company, the Chief Financial Officer of the Company, any Senior
         Vice President of the Company and other members of the management of
         the Company shall cooperate fully in any offering of Registrable
         Securities hereunder, which cooperation shall include, without
         limitation, the preparation of the Registration Statement and all other
         offering materials and related documents, and participation in meetings
         with Underwriters, attorneys, accountants and potential investors.

                  3.1.8 RECORDS. The Company shall make available for inspection
         by the Holder, any Underwriter participating in any disposition
         pursuant to such registration statement and any attorney, accountant or
         other professional retained by the Holder or any Underwriter
         (collectively, the "INSPECTORS"), all financial and other records,
         pertinent corporate documents and properties of the Company
         (collectively, the "RECORDS"), as shall be necessary to enable them to
         exercise their due diligence responsibility, and cause the Company's
         officers, directors and employees to supply all information requested
         by any Inspectors in connection with such registration statement,
         provided that such inspection and information gathering shall be
         accomplished in a manner compliant with Regulation FD (including
         execution of appropriate confidentiality agreements) and, to the
         greatest extent possible, be coordinated by one counsel designated by
         and on behalf of the Holder and other parties.

                  3.1.9 OPINIONS AND COMFORT LETTERS. The Company shall furnish
         to the Holder a signed counterpart, addressed to the Holder, of (i) any
         opinion of counsel to the Company delivered to any Underwriter and (ii)
         any comfort letter from the Company's independent public accountants
         delivered to any Underwriter. If no legal opinion is delivered to any

                                      -6-

<PAGE>

         Underwriter, the Company shall furnish to the Holder, at any time that
         the Holder elects to use a prospectus, an officer's certification to
         the effect that the registration statement containing such prospectus
         has been declared effective and that to such officer's knowledge no
         stop order is in effect.

                  3.1.10 EARNINGS STATEMENT. The Company shall comply with all
         applicable rules and regulations of the Commission and the 1933 Act,
         and make available to its shareholders, as soon as practicable, an
         earnings statement covering a period of 12 months, beginning within
         three months after the effective date of the registration statement,
         which earnings statement shall satisfy the provisions of Section 11(a)
         of the 1933 Act and Rule 158 thereunder.

                  3.1.11 LISTING. The Company shall use its reasonable best
         efforts to cause all Registrable Securities registered pursuant to this
         Agreement to be listed on such exchanges or otherwise designated for
         trading in the same manner as similar securities issued by the Company
         are then listed or designated or, if no such similar securities are
         then listed or designated, in a manner satisfactory to the Holder.

         3.2 HOLDER'S OBLIGATIONS TO PROVIDE INFORMATION AND SUSPEND
DISTRIBUTION. The Holder shall provide such information as reasonably requested
by the Company in connection with the preparation of any registration statement,
including amendments and supplements thereto, in order to effect the
registration of any Registrable Securities under the 1933 Act pursuant to this
Agreement. The Holder shall promptly advise the Company in writing if changes in
a registration statement or prospectus are required in order that disclosures
made in such registration statement or prospectus based on information
previously provided by the Holder for use in the registration statement or
prospectus do not contain an untrue statement of a material fact and do not omit
to state a material fact required to be stated therein or necessary to make the
statements therein (in the case of the prospectus, in light of the circumstances
under which they are made) not misleading. The Holder agrees that, if changes
are required as described in the immediately preceding sentence and/or upon
receipt of any notice from the Company of the happening of any event of the kind
described in CLAUSE 3.1.4(iv), the Holder will forthwith discontinue disposition
of Registrable Securities pursuant to the registration statement covering such
Registrable Securities until the Holder' receipt of the copies of the
supplemented or amended prospectus contemplated by CLAUSE 3.1.4(iv), and, if so
directed by the Company, the Holder will deliver to the Company all copies,
other than permanent file copies then in the Holder's possession, of the most
recent prospectus covering such Registrable Securities at the time of receipt of
such notice. If the Company gives such notice, the Company shall extend the
period during which such registration statement shall be maintained effective by
the number of days during the period from and including the date of the giving
of notice pursuant to CLAUSE 3.1.4(iv) to the date when the Company shall make
available to the Holder a prospectus supplemented or amended to conform with the
requirements of CLAUSE 3.1.4(iv).

         3.3 REGISTRATION EXPENSES. The Company shall pay all expenses incurred
by the Company in connection with any Piggyback Registration pursuant to SECTION
2, and all expenses incurred in performing or complying with the Company's
obligations under this SECTION 3, whether or not the registration statement
becomes effective, in each case including, but not limited to: (i) all
registration and filing fees, (ii) fees and expenses of compliance with
securities or blue sky laws (including fees and disbursements of counsel in
connection with blue sky qualifications of the Registrable Securities), (iii)

                                      -7-

<PAGE>

printing expenses, (iv) the Company's internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), (v) the fees and expenses incurred in connection
with the listing of the Registrable Securities as required by SECTION 3.1.11,
(vi) National Association of Securities Dealers, Inc., Nasdaq or American Stock
Exchange fees, (vii) fees and disbursements of counsel for the Company and fees
and expenses for independent certified public accountants retained by the
Company (including the expenses or costs associated with the delivery of any
opinions or comfort letters requested pursuant to SECTION 3.1.9, and (viii) the
fees and expenses of any special experts retained by the Company in connection
with such registration. The Company will also pay all reasonable fees and
expenses (not to exceed $25,000) incurred by the Holder to one legal counsel in
connection with the preparation and review of the registration statement. The
Company shall have no obligation to pay any underwriting fees, discounts or
selling commissions, or transfer taxes attributable to the Registrable
Securities being sold by the Holder, which expenses shall be borne by the
Holder.

4 INDEMNIFICATION AND CONTRIBUTION.

         4.1 INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and
hold harmless the Holder and its affiliates and agents from and against any
loss, claim, damage or liability and any action in respect thereof to which the
Holder and its affiliates and agents may become subject under the 1933 Act or
the 1934 Act or any other statute or common law, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon, (a) any untrue
statement of a material fact made in connection with the sale of Registrable
Securities or shares of Common Stock, whether or not such statement is contained
or incorporated by reference in any registration statement or prospectus
relating to the Registrable Securities (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) or any
preliminary prospectus, (b) any omission to state a material fact required to be
stated in any registration statement or prospectus or necessary to make the
statements therein not misleading, or (c) any violation by the Company of any
federal, state or common law, rule or regulation applicable to the Company and
relating to action required of or inaction by the Company in connection with
such registration. The Company also shall promptly, but in no event more than
ten Business Days after request for payment, pay directly or reimburse the
Holder and his affiliates and agents for any legal and other expenses reasonably
incurred by the Holder and his affiliates and agents in investigating or
defending or preparing to defend against any such indemnifiable loss, claim,
damage, liability or action. The Company shall either promptly, but in no event
in more than ten Business Days after request for payment, pay directly all
amounts which it is required to pay hereunder or shall reimburse the requesting
party for such amounts within ten Business Days after any request for such
reimbursement. The Company also shall indemnify any Underwriter of the
Registrable Securities, their officers, affiliates, directors, partners, members
and agents and each person who controls such Underwriters on substantially the
same basis as that of the indemnification of the Holder provided in this SECTION
4.1.

         The indemnity agreement contained in this SECTION 4.1 shall not apply
to amounts paid in settlement of any such loss, claim, damage or liability or
any action in respect thereof if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable to the Holder and its affiliates and agents in any such case
for any loss, claim, damage, liability or any action in respect thereof to the
extent that it arises from or is based upon and is in conformity with
information related to the Holder furnished in writing by the Holder expressly

                                      -8-

<PAGE>

for use in connection with such registration by the Holder, nor shall the
Company be liable to the Holder for any such loss, claim, damage or liability or
any action in respect thereof to the extent it arises from or is based upon (i)
any untrue statement of a material fact contained in any registration statement
or prospectus relating to the Registrable Securities delivered by the Holder
after the Company had provided written notice to the Holder that the
registration statement or prospectus contained such untrue statement of a
material fact, or (ii) any omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading
after the Company had provided written notice to the Holder that the
registration statement or prospectus contained the omission.

         4.2 INDEMNIFICATION BY THE HOLDER. The Holder shall indemnify and hold
harmless the Company, its officers, directors, partners, members and agents and
each person, if any, who controls the Company within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act to the same extent as the
foregoing indemnity from the Company to the Holder, but solely with reference to
information in conformity with and related to the Holder furnished in writing by
the Holder expressly for use in any registration statement or prospectus
relating to the Registrable Securities, or any amendment or supplement thereto,
or any preliminary prospectus. The Holder also shall indemnify and hold harmless
any Underwriter of the Registrable Securities, their officers, directors,
partners, members and agents and each person who controls such Underwriters on
substantially the same basis as that of the indemnification of the Company
provided in this SECTION 4.2; PROVIDED, HOWEVER, that in no event shall any
indemnity obligation under this SECTION 4.2 exceed the dollar amount of the net
proceeds actually received by the Holder from the sale of Registrable Securities
which gave rise to the indemnification obligation under the registration
statement or prospectus.

         4.3 CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after receipt by
any person of any notice of any loss, claim, damage or liability or any action
in respect of which indemnity may be sought pursuant to SECTION 4.1 OR 4.2, that
person ("INDEMNIFIED PARTY") shall, if a claim in respect thereof is to be made
against any other person for indemnification hereunder, notify such other person
("INDEMNIFYING PARTY") in writing of the loss, claim damage, liability or
action; PROVIDED, HOWEVER, that the failure by the Indemnified Party to notify
the Indemnifying Party shall not relieve the Indemnifying Party from any
liability which the Indemnifying Party may have to the Indemnified Party
hereunder except to the extent that the Indemnifying Party is materially
prejudiced as a result of not receiving such notice. If the Indemnified Party is
seeking indemnification with respect to any claim or action brought against the
Indemnified Party, then the Indemnifying Party shall be entitled to participate
in the claim or action, and, to the extent that it wishes, jointly with all
other Indemnifying Parties, to assume the defense thereof with counsel
satisfactory to the Indemnified Party. After notice from the Indemnifying Party
to the Indemnified Party of its election to assume the defense of such claim or
action, the Indemnifying Party shall not be liable to the Indemnified Party for
any legal or other expenses subsequently incurred by the Indemnified Party in
connection with the defense thereof other than reasonable costs of
investigation; PROVIDED, HOWEVER, that in any action in which both the
Indemnified Party and the Indemnifying Party are named as defendants, the
Indemnified Party shall have the right to employ separate counsel (but no more
than one such separate counsel) to represent the Indemnified Party and its
controlling persons who may be subject to liability arising out of any claim in
respect of which indemnity may be sought by the Indemnified Party against the
Indemnifying Party, with the fees and expenses of such counsel to be paid by
such Indemnifying Party if, based upon the written opinion of counsel of the

                                      -9-

<PAGE>

Indemnified Party, representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, consent to entry of judgment or effect any settlement of any claim or
pending or threatened proceeding in respect of which the Indemnified Party is or
could have been a party and indemnity could have been sought hereunder by the
Indemnified Party, unless the judgment or settlement includes an unconditional
release of the Indemnified Party from all liability arising out of the claim or
proceeding.

         4.4 CONTRIBUTION. If the indemnification provided for in the foregoing
SECTIONS 4.1, 4.2 AND 4.3 is unavailable to any Indemnified Party in respect of
any loss, claim, damage, liability or action referred to herein, then each
Indemnifying Party, in lieu of indemnifying the Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of the loss, claim, damage, liability or action in such proportion as is
appropriate to reflect the relative fault of the Indemnified Parties and the
Indemnifying Parties in connection with the actions or omissions which resulted
in the loss, claim, damage, liability or action, as well as any other relevant
equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things,
whether the untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Indemnified Party or the
Indemnifying Party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent the statement or omission.

         The parties agree that it would not be just and equitable if
contribution pursuant to this SECTION 4.4 were determined by pro rata allocation
or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an Indemnified Party as a result of any loss, claim,
damage, liability or action referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses incurred by the Indemnified Party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this SECTION 4.4, the Holder shall not be required to contribute
any amount in excess of the dollar amount of the net proceeds actually received
by the Holder from the sale of Registrable Securities which gave rise to the
contribution obligation. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

5 UNDERWRITING AND DISTRIBUTION.

         5.1 RULE 144. The Company covenants that it shall file any reports
required to be filed by it under the 1933 Act and the 1934 Act and shall take
such further action as the Holder may reasonably request, all to the extent
required from time to time to enable the Holder to sell Registrable Securities
without registration under the 1933 Act within the limitation of the exemptions
provided by Rule 144 or Rule 144A under the 1933 Act, as such Rules may be
amended from time to time, or any similar Rule or regulation hereafter adopted
by the Commission.

         5.2 "LOCK-UP" AGREEMENT BY THE HOLDER. The Holder, by its acceptance
hereof, agrees that, upon request and so long as the Holder owns at least 1% of
the issued and outstanding common stock of the Company, in connection with any
underwritten public offering by the Company, the Holder will enter "lock-up"
agreements, in customary form, pursuant to which it will agree not to effect any
sale or distribution of any securities similar to those being registered by the

                                      -10-

<PAGE>

Company, or any securities convertible into or exchangeable or exercisable for
such securities, including a sale pursuant to Rule 144 or 144A under the 1933
Act, during the 14 days prior to, and during the 180-day period beginning on,
the effective date of the registration statement relating to such offering
(except as part of such registration statement); PROVIDED, HOWEVER, that the
obligation of the Holder to execute a lock-up agreement is subject to the
execution of similar agreements by (i) all of the officers and directors of the
Company and (ii) all other similarly situated shareholders of the Company, which
agreements are no less restrictive than that requested from Holder.

6 REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE ISSUANCE AND ACQUISITION OF
THE SHARES.

         6.1 BY THE COMPANY. The Company represents and warrants to the Holder
that:

                  (a) The Shares, when issued, delivered and paid for in
         compliance with the provisions of the ASA and the MIPA, will be validly
         issued, and will be fully paid and nonassessable. The Shares will be
         free of any liens or encumbrances, other than any liens or encumbrances
         created by or imposed upon the Holder; provided, however, that the
         Shares are subject to restrictions on transfer under U.S. state and/or
         federal securities laws.

                  (b) All corporate action on the part of the Company necessary
         for the authorization, execution, delivery and performance of this
         Agreement by the Company, the authorization, sale, issuance and
         delivery of the Shares, and the performance of all of the Company's
         obligations under this Agreement has been taken. This Agreement, when
         executed and delivered by the Company, shall constitute the valid and
         binding obligation of the Company, enforceable in accordance with its
         terms, except (i) as limited by laws of general application relating to
         bankruptcy, insolvency and the relief of debtors, (ii) as limited by
         rules of law governing specific performance, injunctive relief or other
         equitable remedies and by general principles of equity, and (iii) to
         the extent the indemnification or other provisions contained herein may
         further be limited by applicable laws and principles of public policy.

                  (c) The Company has delivered to the Holder its audited
         balance sheet and statement of operations for the period ended December
         31, 2006 and its unaudited balance sheet and statement of operations
         for the period ended March 31, 2007 (the "FINANCIAL STATEMENTS"). The
         Financial Statements are correct in all material respects and present
         fairly the financial condition and operating results of the Company as
         of the date(s) and during the period(s) indicated. The audited
         Financial Statements have been prepared in accordance with Canadian
         generally accepted accounting principles ("GAAP") applied on a
         consistent basis throughout the period indicated, except as disclosed
         therein. The unaudited Financial Statements do not contain additional
         financial statements and footnotes required under GAAP, and are subject
         to normal year-end adjustments.

                  (d) The execution, delivery and performance of and compliance
         with this Agreement, and the issuance of the Shares, will not result in
         any material violation of, or materially conflict with, or constitute a
         material default under, the Company's Certificate of Incorporation or
         Bylaws, each as amended to date, or, to the Company's knowledge, any
         material agreement to which it is a party, except for those as to which
         appropriate consents have been or will be obtained.

                                      -11-

<PAGE>

         6.2 BY THE HOLDER. The Holder represents and warrants to the Company
that:

                  (a) The Holder understands that the issuance of the Shares has
         not been, and will not be, registered under the 1933 Act by reason of a
         specific exemption from the registration provisions of the 1933 Act,
         the availability of which depends upon, among other things, the bona
         fide nature of the investment intent and the accuracy of the Holder's
         representations as expressed herein or otherwise made pursuant hereto.

                  (b) The Holder is acquiring the Shares for investment for its
         own account, not as a nominee or agent, and not with the view to, or
         for resale in connection with, any distribution thereof, and that the
         Holder has no present intention of selling, granting any participation
         in, or otherwise distributing the Shares. The Holder further represents
         that it does not have any contract, undertaking, agreement or
         arrangement with any person or entity to sell, transfer or grant
         participation to such person or entity or to any third person or entity
         with respect to any of the Shares.

                  (c) The Holder has substantial experience in evaluating and
         investing in private placement transactions of securities in companies
         similar to the Company and acknowledges that the Holder is able to fend
         for itself. The Holder has such knowledge and experience in financial
         and business matters so that the Holder is capable of evaluating the
         merits and risks of its investment in the Company.

                  (d) The Holder understands and acknowledges that an investment
         in the Company is highly speculative and involves substantial risks.
         The Holder can bear the economic risk of the Holder's investment and is
         able, without impairing the Holder's financial condition, to hold the
         Shares for an indefinite period of time and to suffer a complete loss
         of the Holder's investment.

                  (e) The Holder has had an opportunity to ask questions of, and
         receive answers from, the officers of the Company concerning this
         Agreement and the transactions contemplated by this Agreement, as well
         as the Company's business, management and financial affairs, which
         questions were answered to its satisfaction. The Holder believes that
         it has received all the information the Holder considers necessary or
         appropriate for deciding whether to acquire the Shares. The Holder
         understands that such discussions, as well as any information issued by
         the Company, were intended to describe and summarize certain aspects of
         the Company's business and prospects, but were not necessarily a
         thorough or exhaustive description. The Holder also acknowledges that
         it is relying solely on its own counsel and not on any statements or
         representations of the Company or its agents for legal advice with
         respect to this investment or the transactions contemplated by this
         Agreement.

                  (f) The Holder is an "accredited investor" within the meaning
         of Regulation D, Rule 501(a), promulgated by the Commission under the
         1933 Act and shall submit to the Company such further assurances of
         such status as may be reasonably requested by the Company.

                                      -12-

<PAGE>

                  (g) The Holder acknowledges that the Shares must be held
         indefinitely unless subsequently registered under the 1933 Act or an
         exemption from such registration is available. The Holder is aware of
         the provisions of Rule 144 promulgated under the 1933 Act which permit
         limited resale of shares purchased in a private placement subject to
         the satisfaction of certain conditions, including among other things,
         the existence of a public market for the shares, the availability of
         certain current public information about the Company, the resale
         occurring not less than one year after a party has purchased and paid
         for the security to be sold, the sale being effected through a
         "broker's transaction" or in transactions directly with a "market
         maker" and the number of shares being sold during any three-month
         period not exceeding specified limitations. The Holder acknowledges
         that, if all of the requirements of Rule 144 are not met, registration
         under the 1933 Act or an exemption from registration will be required
         for any disposition of the Shares. The Holder understands that,
         although Rule 144 is not exclusive, the Commission has expressed its
         opinion that persons proposing to sell restricted securities received
         in a private offering other than in a registered offering or pursuant
         to Rule 144 will have a substantial burden of proof in establishing
         that an exemption from registration is available for such offers or
         sales and that such persons and the brokers who participate in the
         transactions do so at their own risk.

                  (h) The Holder understands and agrees that the certificates
         evidencing the Shares, or any other securities issued in respect of the
         Shares upon any stock split, stock dividend, recapitalization, merger,
         consolidation or similar event, shall bear legends similar to the
         following (in addition to any legend required under applicable state or
         other securities laws):

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THE
         SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED, ASSIGNED OR OTHERWISE
         DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR
         THESE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY IN
         FORM AND SUBSTANCE TO THE CORPORATION TO THE EFFECT THAT SUCH
         REGISTRATION IS NOT REQUIRED UNDER THE ACT.

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE
         TORONTO STOCK EXCHANGE ("TSX"); HOWEVER, THE SAID SECURITIES CANNOT BE
         TRADED THROUGH THE FACILITIES OF TSX SINCE THEY ARE NOT FREELY
         TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH
         SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON TSX.

7 MISCELLANEOUS.

         7.1 SUCCESSORS AND ASSIGNS. The rights and obligations of the Holder
under this Agreement shall be freely assignable in whole or in increments of not
less than 500,000 shares of Registrable Securities. Any assignee of such rights
shall, upon agreeing to assume the obligations of the Holder hereunder and
making for the benefit of the Company the representations and warranties

                                      -13-

<PAGE>

contained in SECTION 6.2, be entitled to certain benefits of this Agreement as
set forth in an agreement between the Holder and such assignee. The Holder shall
promptly notify the Company in writing of such assignment and any limitations
binding on assignee. The rights and obligations of the Company hereunder may not
be assigned.

         7.2 ENTIRE AGREEMENT. This Agreement, the ASA and the MIPA and the
other agreements and instruments furnished pursuant thereto or in connection
therewith, constitute the full and entire agreement and understanding between
the Holder and the Company, and supersede all prior agreements and
understandings relating to the subject matter hereof.

         7.3 NOTICES. All notices, requests, demands and other communications
which are required or may be given under this Agreement shall be in writing and
shall be deemed to have been duly given if transmitted by telecopier with
receipt acknowledged, or upon delivery, if delivered personally or by recognized
commercial courier with receipt acknowledged, or upon the expiration of 72 hours
after mailing, if mailed by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

                           If to the Holder, at:

                           Forest Oil Corporation
                           707 Seventeenth Street, Suite 3600
                           Denver, Colorado 80202
                           Attention: General Counsel
                           Telephone: (303) 812-1701
                           Facsimile: (303) 812-1445

                           If to the Company, at:

                           Pacific Energy Resources Ltd.
                           111 W. Ocean Boulevard, Suite 1240
                           Long Beach, California 90802
                           Attention: President
                           Telephone: (562) 628-1526
                           Facsimile: (562) 628-1536

or at such other address or addresses as the Holder or the Company, as the case
may be, may specify by written notice given in accordance with this SECTION 7.3.

         7.4 SEVERABILITY. In case any provision of this Agreement shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

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

         7.6 DESCRIPTIVE HEADINGS. The descriptive headings of the several
paragraphs of this Agreement are for convenience of reference only and do not
constitute a part of this Agreement and are not to be considered in construing
or interpreting this Agreement.

                                      -14-

<PAGE>

         7.7 WAIVERS AND AMENDMENTS. Neither this Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally or by course of
dealing, except by a statement in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought.

         7.8 REMEDIES. If the Company fails to observe or perform any covenant
or agreement to be observed or performed under this Agreement, the Holder may
proceed to protect and enforce his rights by suit in equity or action at law,
whether for specific performance of any term contained in this Agreement or for
an injunction against the breach of any such term or in aid of the exercise of
any power granted in this Agreement or to enforce any other legal or equitable
right of the Holder, or to take any one or more of such actions. The Company
agrees to pay all reasonable fees, costs, and expenses, including without
limitation, fees and expenses of attorneys, accountants and other experts
retained by the Holder, and all reasonable fees, costs and expenses of appeals,
incurred by the Holder in connection with the enforcement of this Agreement or
the collection or any sums due hereunder, whether or not suit is commenced
unless and to the extent that the Company prevails in any action, suit or
proceeding initiated by the Holder which a court of competent jurisdiction
determines was initiated or maintained by the Holder in bad faith. None of the
rights, powers or remedies conferred under this Agreement shall be mutually
exclusive, and each such right, power or remedy shall be cumulative and in
addition to any other right, power or remedy whether conferred by this Agreement
or now or hereafter available at law, in equity, by statute or otherwise.

         7.9 GOVERNING LAW. In all respects, including all matters of
construction, validity and performance, this Agreement and the rights and
obligations arising hereunder shall be governed by, and construed and enforced
in accordance with, the laws of the State of Delaware applicable to contracts
made and performed in such state, without regard to principles thereof regarding
conflicts of laws.

         IN WITNESS WHEREOF, the parties have caused this Share Acquisition and
Registration Rights Agreement to be executed and delivered by their duly
authorized representatives as of the date first above written.

                                                 PACIFIC ENERGY RESOURCES LTD.,
                                                 a Delaware corporation

                                                 By: /S/ DARREN KATIC
                                                     ---------------------------
                                                     Darren Katic, President

                                                 FOREST OIL CORPORATION,
                                                 a New York Corporation

                                                 By: /S/ H. CRAIG CLARK
                                                     ---------------------------

                                      -15-

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