Document:

Exhibit 10.12

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of _____
___, 2007, by and among Sonterra Resources, Inc. (f/k/a River Capital Group,
Inc.), a Delaware corporation, with headquarters currently located at Suite 312,
7 Reid Street, Hamilton Bermuda HM11 (the "Company"), and The Longview Fund,
L.P., a California limited partnership ("Buyer").

         WHEREAS:

         A.       In connection with the Securities Exchange and Additional Note
Purchase Agreement, by and among the parties hereto and dated as of August __,
2007 (the "Securities Exchange Agreement"), the Company has agreed, upon the
terms and subject to the conditions of the Securities Exchange Agreement, to
issue at the Exchange Closing (as defined in the Securities Exchange Agreement)
to the Buyer (i) senior secured notes of the Company, (ii) shares (the "New
Common Shares") of the Company's common stock, $0.001 par value (the "Common
Stock"), and (iii) a warrant to purchase shares of Common Stock (such warrant,
together with any warrant issued in exchange or substitution therefor or
replacement thereof, and as the same may be amended, restated or modified and in
effect from time to time, the "Warrant"; and the shares of Common Stock issuable
upon exercise of the Warrant being referred to herein as the "Warrant Shares");

         B.       Pursuant to the Securities Exchange Agreement, the Company has
agreed to provide certain registration rights under the Securities Act of 1933,
as amended, and the rules and regulations thereunder, or any similar successor
statute (collectively, the "1933 Act"), and applicable state securities laws.

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

         1.       DEFINITIONS.

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

                  a.       "1934 Act" means, collectively, the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder, or
any similar successor statute.

                  b.       "Business Day" means any day other than Saturday,
Sunday or any other day on which commercial banks in the City of New York are
authorized or required by law to remain closed.

                  c.       "Demand Registration Filing Deadline" means the date
that is thirty (30) days after delivery to the Company of a Demand Registration
Request; provided, however, that in the case of a Demand Registration for an
offering pursuant to Rule 415, the "Demand Registration Filing Deadline" shall
mean the later of such date and the earliest date that the Company is permitted
to file the Registration Statement by the SEC.

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                  d.       "Effectiveness Deadline" means the Initial
Effectiveness Deadline, an Additional Warrant Share Registration Effectiveness
Deadline or a Demand Registration Effectiveness Deadline, as applicable.

                  e.       "Filing Deadline" means the Initial Filing Deadline,
an Additional Warrant Share Registration Filing Deadline or a Demand
Registration Filing Deadline, as applicable.

                  f.       "Initial Effectiveness Date" means the date the
Initial Registration Statement is declared effective by the SEC.

                  g.       "Initial Effectiveness Deadline" means the later of
(i) the date that is 120 days after the Exchange Closing Date and (ii) the
Initial Filing Date.

                  h.       "Initial Filing Date" means the date on which the
Initial Registration Statement is filed with the SEC.

                  i.       "Initial Filing Deadline" means the date (such date,
the "Target Date") that is thirty (30) days after the Exchange Closing Date;
provided, however that, if on the Exchange Closing Date the Warrant Registrable
Securities are not then eligible for sale on a delayed or continuous basis by
the Investors pursuant to Rule 415, the Initial filing Deadline shall be the
later of (i) the Target Date and (ii) the earlier of (A) the date that is the
tenth (10th) Business Day following the date on which the Investors shall have
delivered to the Company the information required by Item 508 of Regulation S-K
under the Securities Act with respect to a plan of distribution for the Warrant
Registrable Shares other than in accordance with Rule 415 and (B) the first date
on which the Warrant Registrable Securities are eligible for sale on a delayed
or continuous basis by the Investors pursuant to Rule 415.

                  j.       "Initial Registration Statement" means a registration
statement or registration statements of the Company filed under the 1933 Act
pursuant to Section 2(a) hereof covering the Warrant Registrable Securities.

                  k.       "Investor" means the Buyer, any transferee or
assignee thereof to whom the Buyer assigns its rights under this Agreement and
who agrees to become bound by the provisions of this Agreement in accordance
with Section 11 and any transferee or assignee thereof to whom a transferee or
assignee assigns its rights under this Agreement and who agrees to become bound
by the provisions of this Agreement in accordance with Section 11.

                  l.       "Permitted Registration Amount" means the lesser of
(i) the number of Registrable Securities requested to be included in a
Registration Statement for a Demand Registration or a Piggyback Registration, as
applicable and (ii) the maximum number of Registrable Securities the Company is
permitted to include in such Registration Statement by the SEC.

                  m.       "Person" means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof.

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                  n.       "Person" means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a governmental or any department or agency
thereof, or any other legal entity.

                  o.       "Register," "registered," and "registration" refer to
a registration effected by preparing and filing one or more Registration
Statements in compliance with the 1933 Act and the declaration or ordering of
effectiveness of such Registration Statement(s) by the SEC.

                  p.       "Registrable Securities" means (i) the New Common
Shares, (ii) the Warrant Shares issued or issuable upon exercise of the Warrant,
(iii) any other shares of Common Stock held by Buyer on the date of this
Agreement, or issuable upon exercise, exchange or conversion of any other
securities held by Buyer on the date of this Agreement, (such shares, the "Other
Common Shares"), and (iv) any shares of capital stock of the Company issued or
issuable with respect to the Warrant, the New Common Shares, the Warrant Shares
or the Other Common Shares as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise provided, however, that
any such Registrable Securities shall cease to be Registrable Securities when
(A) a Registration Statement with respect to the sale of such securities becomes
effective under the 1933 Act and such securities are disposed of in accordance
with such Registration Statement, (B) such securities are sold in accordance
with Rule 144 (as defined in Section 10) or (c) such securities become
transferable without any restrictions in accordance with Rule 144(k) (or any
successor provision).

                  q.       "Registration Statement" means a registration
statement or registration statements of the Company filed under the 1933 Act
covering Registrable Securities.

                  r.       "Rule 415" means Rule 415 under the 1933 Act or any
successor rule providing for offering securities on a continuous or delayed
basis.

                  s.       "Trading Day" means any day on which the Common Stock
is traded on the Principal Market; provided that "Trading Day" shall not include
any day on which the Common Stock is scheduled to trade, or actually trades, on
the Principal Market for less than 4.5 hours.

                  t.       "Warrant Registrable Securities" means (i) the
Warrant Shares issued or issuable upon exercise of the Warrant and (ii) any
shares of capital stock issued or issuable with respect to the Warrant or the
Warrant Shares as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise; provided, however, that any such Warrant
Registrable Securities shall cease to be Warrant Registrable Securities when (A)
a Registration Statement with respect to the sale of such securities becomes
effective under the 1933 Act and such securities are disposed of in accordance
with such Registration Statement, (B) such securities are sold in accordance
with Rule 144, or (C) such securities become transferable without any
restrictions in accordance with Rule 144(k) (or any successor provision).

                  u.       "Principal Market" means, with respect to the Common
Stock, the OTC Bulletin Board; provided however, that, if after the date of this

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Agreement the Common Stock is listed on a national securities exchange,
"Principal Market" shall mean such national securities exchange; and, with
respect to any other security, "Principal Market" means the principal securities
exchange or trading market for such security.

                  v.       "Weighted Average Price" means, for any security as
of any date, the dollar volume-weighted average price for such security on its
Principal Market during the period beginning at 9:30 a.m. New York City time (or
such other time as its Principal Market publicly announces is the official open
of trading) and ending at 4:00 p.m. New York City time (or such other time as
its Principal Market publicly announces is the official close of trading) as
reported by Bloomberg Financial Markets (or any successor thereto) ("Bloomberg")
through its "Volume at Price" functions, or if the foregoing does not apply, the
dollar volume-weighted average price of such security in the over-the-counter
market on the electronic bulletin board for such security during the period
beginning at 9:30 a.m. New York City time (or such other time as such
over-the-counter market publicly announces is the official open of trading), and
ending at 4:00 p.m. New York City time (or such other time as such
over-the-counter market publicly announces is the official close of trading) as
reported by Bloomberg, or, if no dollar volume-weighted average price is
reported for such security by Bloomberg for such hours, the average of the
highest closing bid price and the lowest closing ask price of any of the market
makers for such security as reported in the "pink sheets" by the National
Quotation Bureau, Inc. If the Weighted Average Price cannot be calculated for
such security on such date on any of the foregoing bases, the Weighted Average
Price of such security on such date shall be the fair market value as mutually
determined by the Company and the applicable Investor. If the Company and the
applicable Investor are unable to agree upon the fair market value of the Common
Stock, then such dispute shall be resolved by the Chicago office of an
investment banking firm mutually agreeable to the applicable Investor and the
Company. All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during any
period during which the Weighted Average Price is being determined.

Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Securities Exchange Agreement.

         2.       INITIAL MANDATORY REGISTRATION.
                  ------------------------------

                  a.       Initial Mandatory Registration. The Company shall
prepare, and, as soon as practicable but in no event later than the Initial
Filing Deadline, file with the SEC a Registration Statement on Form S-3 (subject
to Section 2(c)), covering the resale of all of the Warrant Registrable
Securities. The Initial Registration Statement prepared pursuant hereto shall
register for resale at least that number of Warrant Registrable Securities equal
to 100% of the number of Warrant Shares issued or issuable upon exercise of the
Warrant as of the second Trading Day immediately preceding the date the Initial
Registration Statement is initially filed with the SEC. The Company shall use
its reasonable best efforts to have the Initial Registration Statement declared
effective by the SEC as soon as practicable, but in no event later than the
Initial Effectiveness Deadline.

                  b.       Allocation of Registrable Securities. The initial
number of Warrant Registrable Securities included in the Initial Registration
Statement (or any other Registration Statement filed pursuant to this Section 2)
and each increase in the number of Warrant Registrable Securities included

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therein shall be allocated pro rata among the Investors based on the number of
such Warrant Registrable Securities held by each Investor at the time such
Registration Statement or increase thereof is declared effective by the SEC. In
the event that an Investor sells or otherwise transfers any of such Investor's
Warrant Registrable Securities, each transferee shall be allocated a pro rata
portion of the then remaining number of Warrant Registrable Securities included
in such Registration Statement for such transferor. Any shares of Common Stock
included in the Initial Registration Statement (or any other Registration
Statement filed pursuant to this Section 2) and which remain allocated to any
Person which ceases to hold any Warrant Registrable Securities covered by such
Registration Statement shall be allocated to the remaining Investors, pro rata
based on the number of Warrant Registrable Securities then held by such
Investors which are covered by such Registration Statement. For purposes hereof,
the number of Warrant Registrable Securities held by an Investor includes all
Warrant Registrable Securities issuable upon the exercise of Warrants held by
such Investor, without regard to any limitations on exercise of the Warrant. In
no event shall the Company include any securities other than Registrable
Securities in any Registration Statement filed pursuant to this Section 2.

                  c.       Ineligibility for Form S-3. In the event that Form
S-3 is not available for the registration of the resale of the Warrant
Registrable Securities hereunder, the Company shall (i) register the Warrant
Registrable Securities on Form S-1, Form SB-2 or another appropriate form
reasonably acceptable to the holders of two-thirds of the Warrant Registrable
Securities, and (ii) undertake to register the Warrant Registrable Securities on
Form S-3 (by post-effective amendment to the existing Registration Statement or
otherwise) as soon as such form is available, provided that the Company shall
maintain the effectiveness of the Registration Statement then in effect until
such time as a Registration Statement on Form S-3 covering the Warrant
Registrable Securities has been declared effective by the SEC.

                  d.       Sufficient Number of Shares Registered. In the event
the number of shares available under the Initial Registration Statement filed
pursuant to Section 2(a) (or any Registration Statement previously filed
pursuant to this Section 2(d)) is insufficient to cover all of the Warrant
Registrable Securities required to be covered by the Initial Registration
Statement (or Registration Statement previously filed pursuant this Section
2(d)) or an Investor's allocated portion of such Warrant Registrable Securities
pursuant to Section 2(b), the Company shall, as soon as practicable, but in any
event not later than fifteen (15) days after the necessity therefor arises (an
"Additional Warrant Share Registration Filing Deadline"), amend the Initial
Registration Statement, or file a new Registration Statement (on the short form
available therefor, if applicable), or both, so as to register for resale at
least that number of Warrant Registrable Securities equal to 100% of the number
of Warrant Shares issued or issuable upon exercise of the Warrant as of the
Trading Day immediately preceding the date of the filing of such amendment or
new Registration Statement with the SEC. The Company shall use its reasonable
best efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof, but in any event
not later than seventy-five (75) days following the filing thereof (an
"Additional Warrant Share Registration Effectiveness Deadline"). For purposes of
the foregoing provision, the number of shares available under the Initial
Registration Statement (or any Registration Statement previously filed pursuant
to this Section 2(d)) shall be deemed "insufficient to cover all of the Warrant
Registrable Securities" if, as of any date of determination, the number of
Warrant Registrable Securities equal to the number of Warrant Shares issued or

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<PAGE>

issuable as of such time upon exercise of the Warrant is greater than the number
of Warrant Registrable Securities available for resale under such Registration
Statement.

                  e.       Effect of Failure to File and Obtain and Maintain
Effectiveness of Mandatory Registration Statement. If (A) a Registration
Statement covering Registrable Securities and required to be filed by the
Company pursuant to Section 2(a) or Section 2(d) is not (I) filed with the SEC
on or before the applicable Filing Deadline or (II) declared effective by the
SEC on or before the applicable Effectiveness Deadline, or (B) on any day after
Registration Statement has been declared effective by the SEC sales of all the
Registrable Securities required to be included on such Registration Statement
cannot be made (other than during an Allowable Grace Period (as defined in
Section 5(t)) pursuant to such Registration Statement (including because of a
failure to keep the such Registration Statement effective, to disclose such
information as is necessary for sales to be made pursuant to such Registration
Statement or to register sufficient shares of Common Stock, as determined in
accordance with Section 2(e), or because a post-effective amendment to such
Registration Statement has been filed but not been declared effective), then, as
partial relief for the damages to any holder of Warrants by reason of any such
delay in or reduction of its ability to sell the underlying shares of Common
Stock (which remedy shall not be exclusive of any other remedies available at
law or in equity), the Company shall pay to such holder an amount in cash equal
to the product of (X) the total Aggregate Exercise Price (as defined in the
Warrant) of the Warrant held by such holder, multiplied by (Y) the sum of (I)
0.02, if such Registration Statement is not filed by the applicable Filing
Deadline, plus (II) 0.02, if such Registration Statement is not declared
effective by the applicable Effectiveness Deadline, plus (III) the product of
(I) 0.000667 multiplied by (II) the sum (without duplication) of (1) the number
of days after the applicable Filing Deadline that such Registration Statement is
not filed with the SEC, plus (2) the number of days after the applicable
Effectiveness Deadline that such Registration Statement is not declared
effective by the SEC, plus (3) the number of days after such Registration
Statement has been declared effective by the SEC that such Registration
Statement is not available (other than during an Allowable Grace Period) for the
sale of at least all the Warrant Registrable Securities required to be included
on such Warrant Registration Statement pursuant to this Section 2. The payments
to which a holder shall be entitled pursuant to this Section 2(e) are referred
to herein as "Warrant Share Registration Delay Payments." Warrant Registration
Delay Payments shall be paid on the earlier of (I) the last day of the calendar
month during which such Warrant Registration Delay Payments are incurred and
(II) the third Business Day after the event or failure giving rise to the
Registration Delay Payments is cured. In the event the Company fails to make
Warrant Share Registration Delay Payments in a timely manner, such Warrant
Registration Delay Payments shall bear interest, in each case until paid in
full, at a rate equal to the lesser of (A) 2.0% per month (equivalent to a per
annum rate of 24.0%), prorated for partial months, and (B) the highest lawful
interest rate.

         3.       DEMAND REGISTRATION.
                  -------------------

                  a.       Long-Form Registrations. Subject to the terms of this
Agreement, any Investors holding at least two-thirds (2/3) of the
then-outstanding Registrable Securities may at any time following the Exchange
Closing Date request (any such request, a "Long-Form Demand Registration
Request") registration of all or part of their Registrable Securities on Form

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S-1, Form SB-2 or any similar long-form registration. Within five (5) days after
receipt of any request pursuant to this Section 3(a), the Company will give
written notice of such request to all other Investors holding Registrable
Securities. The Company shall prepare, and, as soon as practicable but in no
event later than the Demand Registration Filing Deadline, file with the SEC a
Registration Statement, and the Company shall include in such registration all
Registrable Securities with respect to which the Company has received written
requests for inclusion within twenty (20) days after delivery of the Company's
notice; provided, however, that if at the time of issuance of such Long-Form
Demand Registration Request, the Registrable Securities are eligible to be sold
on a delayed or continuous basis pursuant to Rule 415 and the Demand
Registration is for an offering pursuant to Rule 415, the Company shall not be
required to include in such Demand Registration Statement a number of
Registrable Securities in excess of the Permitted Registration Amount. All
registrations requested pursuant to this Section 3(a) are referred to herein as
"Long-Form Demand Registrations." The Company is obligated to effect no more
than three (3) Long-Form Demand Registrations in any 12-month period.

                  b.       Short-Form Registrations. In addition to the
Long-Form Registrations provided pursuant to Section 3(a), at any time following
the Exchange Closing Date that the Company is eligible to use a Form S-3 (or any
similar short-form registration) for resale of Common Stock by selling security
holders, Investors holding at least two-thirds (2/3) of the then-outstanding
Registrable Securities may request (any such request, or any Long-Form Demand
Registration Request, a "Demand Registration Request") registrations of all or
part of their Registrable Securities on Form S-3 or any similar short-form
registration ("Short-Form Demand Registrations" and, together with the Long-Form
Demand Registrations, "Demand Registrations"). Within five (5) Business Days
after receipt of any request pursuant to this Section 3(b), the Company will
give written notice of such request to all other Investors holding Registrable
Securities. The Company shall prepare, and, as soon as practicable but in no
event later than the Demand Registration Filing Deadline, file with the SEC a
Registration Statement, and the Company shall include in such Registration
Statement all Registrable Securities with respect to which the Company has
received written requests for inclusion within twenty (20) days after delivery
of the Company's notice; provided, however, that if the Demand Registration is
for an offering pursuant to Rule 415, the Company shall not be required to
include in such Demand Registration Statement a number of Registrable Securities
in excess of the Permitted Registration Amount. Demand Registrations will be
Short-Form Registrations whenever the Company is permitted to use Form S-3 or
any applicable short form therefor. If a Short-Form Registration is to be an
underwritten public offering, and if the underwriters for marketing or other
reasons request the inclusion in the Registration Statement of information which
is not required under the 1933 Act to be included in a Registration Statement on
the applicable form for the Short-Form Registration, the Company will provide
such information as may be reasonably requested for inclusion by the
underwriters in the Short-Form Registration. The Company is not obligated to
effect more than three (3) Short-Form Demand Registrations in any 12-month
period.

                  c.       Filing Deadlines and Effectiveness Dates. The Company
shall use its reasonable best efforts to have any Registration Statement filed
pursuant to this Section 3 declared effective by the SEC as soon as practicable,
but in no event later than the date which is seventy-five (75) days after the
date such Registration Statement is initially filed with the SEC (the "Demand
Registration Effectiveness Deadline").

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                  d.       Allocation and Priority of Registrable Securities in
a Demand Registration.

                           i.       The Company will not include in any Demand
Registration any securities which are not Registrable Securities without the
prior written consent of the Investors holding securities representing at least
two-thirds (2/3) of the Registrable Securities to be included in such Demand
Registration. If a Demand Registration is for an offering pursuant to Rule 415
and the number of Registrable Securities required by the Investors to be
included therein exceeds the Permitted Registration Amount, the initial number
of Registrable Securities included in any Registration Statement in respect of
such Demand Registration and each increase in the number of Registrable
Securities included therein shall be allocated pro rata among the Investors
holding Registrable Securities on the basis of the number of Registrable
Securities owned by such Investors, with further successive pro rata allocations
among the Investors if any such Investor has requested the registration of less
than all of the Registrable Securities such Investor is entitled to register. In
the event that an Investor sells or otherwise transfers any of such Investor's
Registrable Securities, each transferee shall be allocated a pro rata portion of
the then remaining number of Registrable Securities included in such
Registration Statement for such transferor. Any shares of Common Stock included
in a Demand Registration Statement and which remain allocated to any Person
which ceases to hold any Registrable Securities covered by such Demand
Registration Statement shall be allocated to the remaining Investors, pro rata
based on the number of Registrable Securities then held by such Investors which
are covered by such Registration Statement. For purposes hereof, the number of
Registrable Securities held by an Investor includes all shares of Common Stock
issuable upon exercise of Warrants (and upon conversion, exercise or exchange of
other securities held by Buyer on the date of this Agreement) held by such
Investor, with further successive pro rata allocations among the Investors if
any such Investor has requested the registration of less than all of the
Registrable Securities such Investor is entitled to register.

                           ii.      If a Demand Registration is an underwritten
public offering and the managing underwriters advise the Company in writing that
in their opinion the inclusion of the number of Registrable Securities and other
securities requested to be included creates a substantial risk that the price
per share of Common Stock will be reduced, the Company will include in such
registration, prior to the inclusion of any securities which are not Registrable
Securities, the number of Registrable Securities requested to be included which
in the opinion of such underwriters can be sold without creating such a risk,
pro rata among the respective Investors holding Registrable Securities on the
basis of the number of Registrable Securities owned by such Investors, with
further successive pro rata allocations among the Investors if any such Investor
has requested the registration of less than all such Registrable Securities such
Investor is entitled to register.

                  e.       Selection of Underwriters. The Investors holding at
least two-thirds (2/3) of the Registrable Securities included in any Demand
Registration shall have the right to elect that the Demand Registration shall be
underwritten and, if so elected, to select the investment bank(s) and manager(s)
to administer the offering, subject to the Company's approval, which shall not
be unreasonably withheld, conditioned or delayed.

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                  f.       Effect of Failure to File and Obtain and Maintain
Effectiveness of a Demand Registration Statement. If (i) a Registration
Statement covering Registrable Securities and required to be filed by the
Company pursuant to Section 3(a) or Section 3(b) of this Agreement is not (A)
filed with the SEC on or before the applicable Filing Deadline or (B) declared
effective by the SEC on or before the applicable Effectiveness Deadline, or (ii)
on any day after any such Registration Statement has been declared effective by
the SEC sales of all the Registrable Securities required to be included on such
Registration Statement cannot be made (other than during an Allowable Grace
Period (as defined in Section 5(t)) pursuant to such Registration Statement
(including because of a failure to keep such Registration Statement effective,
to disclose such information as is necessary for sales to be made pursuant to
such Registration Statement or to register sufficient shares of Common Stock, as
determined in accordance with this Section 3, or because a post-effective
amendment to such Registration Statement has been filed but not been declared
effective), then, as partial relief for the damages to any holder of Registrable
Securities by reason of any such delay in or reduction of its ability to sell
the underlying shares of Common Stock (which remedy shall not be exclusive of
any other remedies available at law or in equity), the Company shall pay to such
holder an amount in cash equal to the product of (i) the sum of (A) the total
Aggregate Exercise Price (as defined in the Warrant) of the Warrant held by such
holder, plus (B) the product of (I) the total number of New Common Shares and
Other Common Shares held by such holder, multiplied by (II) the arithmetic
average of the Weighted Average Price of the Common Stock on each of the five
(5) consecutive Trading Days immediately preceding the Exchange Closing Date
(subject to appropriate adjustment for any stock dividend, stock split, stock
combination or other similar transaction occurring during such period)
multiplied by (ii) the sum of (a) 0.02, if such Registration Statement is not
filed by the applicable Filing Deadline, plus (b) 0.02, if such Registration
Statement is not declared effective by the applicable Effectiveness Deadline,
plus (c) the product of (X) 0.000667 multiplied by (Y) the sum (without
duplication) of (1) the number of days after the applicable Filing Deadline that
such Registration Statement is not filed with the SEC, plus (2) the number of
days after the applicable Effectiveness Deadline that such Registration
Statement is not declared effective by the SEC, plus (3) the number of days
after such Registration Statement has been declared effective by the SEC that
such Registration Statement is not available (other than during an Allowable
Grace Period) for the sale of at least all the Registrable Securities required
to be included on such Registration Statement pursuant to this Section 3. The
payments to which a holder shall be entitled pursuant to this Section 3(f) are
referred to herein as "Demand Registration Delay Payments." Demand Registration
Delay Payments shall be paid on the earlier of (I) the last day of the calendar
month during which such Demand Registration Delay Payments are incurred and (II)
the third Business Day after the event or failure giving rise to the Demand
Registration Delay Payments is cured. In the event the Company fails to make
Demand Registration Delay Payments in a timely manner, such Demand Registration
Delay Payments, shall bear interest, in each case until paid in full, at a rate
equal to the lesser of (A) 2.0% per month (equivalent to a per annum rate of
24.0%), prorated for partial months, and (B) the highest lawful interest rate.

         4.       PIGGYBACK REGISTRATIONS.
                  -----------------------

                  a.       Right to Piggyback. Whenever the Company proposes to
register any of its securities under the 1933 Act (other than pursuant to
Section 2 or 3 of the Agreement) in connection with a public offering of such
securities for cash (other than a registration relating solely to the sale of

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securities to participants in a stock incentive plan of the Company, in their
capacity as such) and the registration form to be used may be used for the
registration of Registrable Securities (a "Piggyback Registration"), the Company
will give prompt written notice (and in any event within five (5) Business Days
after its receipt of notice of any exercise of demand registration rights other
than under this Agreement), which notice shall describe the offering
contemplated thereby, to all Investors of its intention to effect such a
registration and will include in such registration all Registrable Securities
held by any Investors (in accordance with the priorities set forth in Sections
4(b) and 4(c) below) with respect to which the Company has received written
requests for inclusion within twenty (20) days after the delivery of the
Company's notice; provided, however, that if the Piggyback Registration is for
an offering pursuant to Rule 415, the Company shall not be required to include
in such Demand Registration Statement a number of Registrable Securities in
excess of the Permitted Registration Amount.

                  b.       Allocation and Priority of Registrable Security in a
Piggyback Registration.

                           i.       If the Registrable Securities are then
eligible for sale on a delayed or continuous basis pursuant to Rule 415 and a
Piggyback Registration is for an offering pursuant to Rule 415 and the number of
Registrable Securities required by the Investors to be included therein exceeds
the Permitted Registration Amount, the initial number of Registrable Securities
included in any Registration Statement in respect of such Piggyback Registration
and each increase in the number of Registrable Securities included therein shall
be allocated pro rata among the Investors holding Registrable Securities on the
basis of the number of Registrable Securities owned by such Investors, with
further successive pro rata allocations among the Investors if any such Investor
has requested the registration of less than all of the Registrable Securities
such Investor is entitled to register. In the event that an Investor sells or
otherwise transfers any of such Investor's Registrable Securities, each
transferee shall be allocated a pro rata portion of the then remaining number of
Registrable Securities included in such Registration Statement for such
transferor. Any shares of Common Stock included in a Piggyback Registration
Statement and which remain allocated to any Person which ceases to hold any
Registrable Securities covered by such Piggyback Registration Statement shall be
allocated to the remaining Investors, pro rata based on the number of
Registrable Securities then held by such Investors which are covered by such
Registration Statement. For purposes hereof, the number of Registrable
Securities held by an Investor includes all shares of Common Stock issuable upon
exercise of the Warrant (and upon conversion, exercise or exchange of other
securities) held by such Investor.

                           ii.      If a Piggyback Registration is an
underwritten primary registration on behalf of the Company and the managing
underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in the registration creates a substantial
risk that the price per share of Common Stock in the offering will be reduced,
the Company will include in such registration first, the securities that the
Company proposes to sell, second, the Registrable Securities requested to be
included in such registration, pro rata among the Investor on the basis of the
number of shares of Registrable Securities owned by the Investors, with further
successive pro rata allocations among the Investors if any such Investor has
requested the registration of less than all of the Registrable Securities such
Investor is entitled to register, and third, any other securities requested to
be included in such registration.

                                       10
<PAGE>

                           iii.     Priority on Secondary Registrations. If a
Piggyback Registration is an underwritten secondary registration on behalf of
holders of the Company's securities and the managing underwriters advise the
Company in writing that in their opinion the number of securities requested to
be included in the registration creates a substantial risk that the price per
share of Common Stock in the offering will be reduced, the Company will include
in such registration first, the securities requested to be included therein by
the holders requesting such registration and the Registrable Securities
requested to be included in such registration, pro rata among the holders of
such securities on the basis of the number of shares of Common Stock or
Registrable Securities owned by such holders, with further successive pro rata
allocations among such holders if any such holder has requested the registration
of less than all of the Registrable Securities such holder is entitled to
register, and second, other securities requested to be included in such
registration.

                  c.       Selection of Underwriters. In connection with any
Piggyback Registration, (i) Investors holding at least two-thirds (2/3) of the
Registrable Securities requested to be registered shall have the right to elect
that such registration be underwritten and to select the managing underwriters
(subject to the approval of the Company, which shall not be unreasonably
withheld, conditioned or delayed) to administer any offering of the Company's
securities covered by Section 5(b)(iii), and (ii) the Company shall have the
right to select the managing underwriters (subject to the approval of Investors
holding securities representing at least two-thirds (2/3) of the Registrable
Securities requested to be registered, which shall not be unreasonably withheld,
conditioned or delayed) to administer any offering of the Company's securities
covered by Section 5(b)(ii).

         5.       RELATED OBLIGATIONS.
                  -------------------

                  Whenever the Company is obligated to file a Registration
Statement with the SEC pursuant to Section 2 or Section 3, the holders of
Registrable Securities have requested that any Registrable Securities be
registered pursuant to this Agreement, or the Company is otherwise obligated to
file a Registration Statement pursuant to this Agreement, the Company shall use
its reasonable best efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition thereof and,
pursuant thereto, the Company shall have the following obligations:

                  a.       The Company shall promptly prepare and file with the
SEC a Registration Statement with respect to the applicable Registrable
Securities (but in no event later than the Applicable Filing Deadline) and use
its reasonable best efforts to cause such Registration Statement relating to the
Registrable Securities to become effective as soon as practicable after such
filing (but in no event later than the applicable Effectiveness Deadline). No
later than the first Business Day after such Registration Statement becomes
effective, the Company shall file with the SEC the final prospectus included
therein pursuant to Rule 424 (or successor thereto) promulgated under the 1933
Act. The Company shall keep each Registration Statement effective pursuant to
Rule 415 at all times until the earlier of (i) the date as of which the
Investors may sell all of the Registrable Securities covered by such
Registration Statement without restriction pursuant to Rule 144(k) (or successor
thereto) promulgated under the 1933 Act or (ii) the date on which the Investors
shall have sold all the Registrable Securities covered by such Registration
Statement to Persons that are not Investors (the "Registration Period"). Such
Registration Statement (including any amendments or supplements thereto and any

                                       11
<PAGE>

prospectuses (preliminary, final, summary or free writing) contained therein or
related thereto shall not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein, or necessary to
make the statements therein, in light of the circumstances in which they were
made, not misleading. The term "reasonable best efforts" shall mean, among other
things, that the Company shall submit to the SEC, within two (2) Business Days
after the Company learns that no review of a particular Registration Statement
will be made by the staff of the SEC or that the staff of the SEC has no further
comments on the Registration Statement, as the case may be, a request for
acceleration of effectiveness of such Registration Statement to a time and date
not later than 48 hours after the submission of such request.

                  b.       The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with such
Registration Statement (which prospectus supplements shall be filed pursuant to
Rule 424 (or successor thereto) promulgated under the 1933 Act) as may be
necessary to keep such Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the provisions of the
1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by such Registration Statement until such time as all of such
Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth in
such Registration Statement. In the case of any amendment or supplement to a
Registration Statement or prospectus that is required to be filed pursuant to
this Agreement (including pursuant to this Section 5(b)) by reason of the
Company filing a report under the 1934 Act, the Company shall have incorporated
such report by reference into such Registration Statement, if applicable and
permitted by law, or shall file such amendments or supplements with the SEC on
the same day. The Company shall use its reasonable best efforts to cause any
post-effective amendment to a Registration Statement to become effective as soon
as practicable after such filing. No later than the first Business Day after a
post-effective amendment to a Registration Statement becomes effective, the
Company shall file with the SEC the final prospectus included therein pursuant
to Rule 424 (or successor thereto) promulgated under the 1933 Act.

                  c.       The Investors holding securities representing at
least two-thirds, (2/3) of the Registrable Securities to be included in any
Registration Statement shall have the right to select one legal counsel to
review such Registration Statements ("Legal Counsel"), which shall be Katten
Muchin Rosenman LLP or such other counsel as thereafter designated by the
holders of at least two-thirds (2/3) of the Registrable Securities to be
included in such Registration Statement. The Company shall reasonably cooperate
with Legal Counsel in performing the Company's obligations under this Agreement.
Without limiting the foregoing, the Company shall (A) permit Legal Counsel to
review and comment upon (i) the Initial Registration Statement or Registration
Statement with respect to a Long Form Registration, at least five (5) Business
Days prior to its filing with the SEC, (ii) any Registration Statement with
respect of a Short-Form Registration, at least three (3) Business Days prior to
its filing with the SEC, and (iii) all other Registration Statements and all
amendments and supplements to all Registration Statements, within a reasonable
number of days prior to their filing with the SEC, and (B) not file any
document, registration statement, amendment or supplement described in the
foregoing clause (A) in a form to which Legal Counsel reasonably objects. The
Company shall not submit a request for acceleration of the effectiveness of a

                                       12
<PAGE>

Registration Statement or any amendment or supplement thereto without providing
prior notice thereof to Legal Counsel and each Investor. The Company shall
furnish to Legal Counsel, without charge, (i) promptly after the same is
prepared and filed with the SEC, one copy of any Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits and (ii) upon the
effectiveness of any Registration Statement, one copy of the prospectus included
in such Registration Statement and all amendments and supplements thereto. The
Company shall reasonably cooperate with Legal Counsel in performing the
Company's obligations pursuant to this Section 5.

                  d.       The Company shall furnish to each Investor whose
Registrable Securities are included in any Registration Statement, without
charge, (i) promptly after the same is prepared and filed with the SEC, at least
one copy of such Registration Statement and any amendment(s) thereto, including
financial statements and schedules, all documents incorporated therein by
reference that have not been filed via EDGAR, all exhibits and each preliminary
prospectus, (ii) upon the effectiveness of any Registration Statement, at least
one copy of the prospectus included in such Registration Statement and all
amendments and supplements thereto (or such other number of copies as such
Investor may reasonably request) and (iii) such other documents, including
copies of any prospectus (preliminary, final, summary or free writing), as such
Investor may reasonably request from time to time in order to facilitate the
disposition of the Registrable Securities owned by such Investor.

                  e.       The Company shall use its reasonable best efforts to
(i) register and qualify, unless an exemption from registration and
qualification applies, the resale by the Investors of the Registrable Securities
covered by a Registration Statement under the securities or "blue sky" laws of
all the states of the United States and any other jurisdiction reasonably
requested by any Investor, (ii) prepare and file in those jurisdictions, such
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 5(e) or (y) subject itself to general taxation in any such
jurisdiction. The Company shall promptly notify Legal Counsel and each Investor
who holds Registrable Securities of the receipt by the Company of any
notification with respect to the suspension of the registration or qualification
of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction or its receipt of actual notice of the initiation or
threatening of any proceeding for such purpose.

                  f.       The Company shall notify Legal Counsel and each
Investor in writing of the happening of any event, as promptly as practicable
after becoming aware of such event, as a result of which any prospectus included
in, or relating to, a Registration Statement, as then in effect, includes an
untrue statement of a material fact or omission to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading (provided
that in no event shall such notice contain any material, nonpublic information),

                                       13
<PAGE>

and promptly prepare and file with the SEC a supplement or amendment to such
Registration Statement to correct such untrue statement or omission, and deliver
at least one copy of such supplement or amendment to Legal Counsel and each
Investor. The Company shall also promptly notify Legal Counsel and each Investor
in writing (i) when a prospectus or any prospectus supplement or post-effective
amendment has been filed, and when a Registration Statement or any
post-effective amendment has become effective (notification of such
effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
on the same day of such effectiveness and by overnight mail), (ii) of any
request by the SEC for amendments or supplements to a Registration Statement or
related prospectus or related information, and (iii) of the Company's reasonable
determination that a post-effective amendment to a Registration Statement would
be appropriate.

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

                  h.       At the reasonable request (in the context of the
securities laws) of any Investor, or in the case of an underwritten offering
upon the request of any underwriter, the Company shall furnish to such Investor
or underwriter, as the case may be, on the date of the effectiveness of the
Registration Statement and thereafter from time to time on such dates as such
Investor or underwriter may reasonably request (i) a "comfort letter," dated
such date, from the Company's independent registered certified public
accountants in form and substance as is customarily given by registered
independent registered certified public accountants to underwriters in an
underwritten public offering, addressed to the Investors and any underwriters
(or if such accountants are prohibited by generally accepted auditing standards
from issuing such a "comfort letter" to an Investor, the Company shall furnish
to such Investor an "agreed upon procedures" letter covering the same matters to
the greatest extent possible, and otherwise in customary form and substance),
and (ii) an opinion, dated as of such date, of counsel representing the Company
for purposes of such Registration Statement, in form, scope and substance as is
customarily given to underwriters in an underwritten public offering, addressed
to such Investor or underwriter, as the case may be.

                  i.       At the reasonable request (in the context of the
securities laws) of any Investor or, in the case of an underwritten offering,
upon the request of any underwriter, the Company shall make available for
inspection during regular business hours by (i) any Investor, (ii) Legal Counsel
and (iii) one firm of accountants or other agents retained by the Investors
(collectively, the "Inspectors"), and in the case of an underwritten offering by
any underwriter all pertinent financial and other records, and pertinent
corporate documents and properties of the Company (collectively, the "Records"),
as shall be reasonably deemed necessary by such Inspector or underwriter, as the
case may be, and cause the Company's officers, directors and employees to supply
all information that any Inspector or underwriter may reasonably request;
provided, however, that each Inspector shall agree to hold in strict confidence
and shall not make any disclosure (except to an Investor or underwriter) or use
of any Record or other information that the Company determines in good faith to

                                       14
<PAGE>

be confidential, and of which determination the Inspectors are so notified,
unless (a) the disclosure of such Records is necessary to avoid or correct a
misstatement or omission in any Registration Statement or is otherwise required
under the 1933 Act, (b) the release of such Records is ordered pursuant to a
subpoena or other order from a court or government body of competent
jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this or any
other agreement of which the Inspector has knowledge. Each Investor agrees that
it shall, upon learning that disclosure of such Records is sought in or by a
court or governmental body of competent jurisdiction or through other means,
give prompt notice to the Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, the Records deemed confidential. Nothing herein (or any other
confidentiality agreement between the Company and any Investor) shall be deemed
to limit the Investor's ability to sell Registrable Securities in a manner that
is otherwise consistent with applicable laws and regulations, provided that such
Investor receiving information pursuant to this Section 5(i) complies with its
confidentiality obligations pursuant to this Section 5(i).

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

                  k.       The Company shall use its reasonable best efforts to
(i) cause all the Registrable Securities covered by a Registration Statement to
be listed on each securities exchange or trading market on which securities of
the same class or series issued by the Company are listed, and (ii) without
limiting the generality of the foregoing, arrange for at least three market
makers to register with the National Association of Securities Dealers, Inc.
(the "NASD") as such with respect to such Registrable Securities. The Company
shall pay all fees and expenses in connection with satisfying its obligation
under this Section 5(k).

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

                  m.       The Company shall provide a transfer agent and
registrar of all such Registrable Securities not later than the effective date
of the applicable Registration Statement.

                                       15
<PAGE>

                  n.       If requested by an Investor, the Company shall (i) as
soon as practicable incorporate in a prospectus supplement or post-effective
amendment such information as such Investor requests to be included therein
relating to the sale and distribution of Registrable Securities, including
information with respect to such Investor, the number of Registrable Securities
being offered or sold, the purchase price being paid therefor and any other
terms of the offering of the Registrable Securities to be sold in such offering;
(ii) as soon as practicable make all required filings of such prospectus
supplement or post-effective amendment after being notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and
(iii) as soon as practicable, supplement or make amendments to any Registration
Statement if reasonably requested by an Investor.

                  o.       The Company shall use its reasonable best efforts to
cause the Registrable Securities covered by the applicable Registration
Statement to be registered with or approved by such other governmental agencies
or authorities in the United States as may be necessary to consummate the
disposition of such Registrable Securities.

                  p.       The Company shall make generally available to its
security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form
complying with the provisions of Rule 158 under the 1933 Act) covering a
12-month period beginning not later than the first day of the Company's fiscal
quarter next following the effective date of a Registration Statement.

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

                  r.       Within one (1) Business Day after a Registration
Statement that covers applicable Registrable Securities is ordered effective by
the SEC, the Company shall deliver, and shall cause legal counsel for the
Company to deliver, to the transfer agent for such Registrable Securities (with
copies to the Investors whose Registrable Securities are included in such
Registration Statement) confirmation that such Registration Statement has been
declared effective by the SEC in substantially the form attached hereto as
Exhibit A, provided that if the Company changes its transfer agent, it shall
immediately deliver any previously delivered notices under this Section 5(r) and
any subsequent notices to such new transfer agent.

                  s.       To the extent not made by the underwriters in the
case of an underwritten offering, the Company shall make such filings with the
NASD, pursuant to NASD Rule 2710 or otherwise (including providing all required
information and paying required fees thereto), as and when requested by any
Investor, or in the case of an underwritten offering, by any underwriter, and
make all other filings and take all other actions reasonably necessary to
expedite and facilitate the disposition by the Investors of Registrable
Securities pursuant to a Registration Statement, including promptly responding
to any comments received from the NASD.

                  t.       Notwithstanding anything to the contrary in Section
5(f), at any time after the applicable Registration Statement has been declared
effective by the SEC, the Company may delay the disclosure of material
non-public information concerning the Company the disclosure of which at the
time is not, in the good faith opinion of the Board of Directors of the Company

                                       16
<PAGE>

and its counsel, in the best interest of the Company and not, in the opinion of
counsel to the Company, otherwise required (a "Grace Period"); provided, that
the Company shall promptly (i) notify the Investors in writing of the existence
of material non-public information giving rise to a Grace Period (provided that
in each notice the Company shall not disclose the content of such material
non-public information to the Investors) and the date on which the Grace Period
will begin, and (ii) notify the Investors in writing of the date on which the
Grace Period ends; and, provided further, that (A) no Grace Period shall exceed
fifteen (15) consecutive days, (B) during any 365 day period such Grace Periods
shall not exceed an aggregate of thirty (30) days and (C) the first day of any
Grace Period must be at least ten (10) Trading Days after the last day of any
prior Grace Period (a Grace Period that satisfies all of the requirements of
this Section 5(t) being referred to as an "Allowable Grace Period"). For
purposes of determining the length of a Grace Period above, the Grace Period
shall begin on and include the date the Investors receive the notice referred to
in clause (i) and shall end on and include the later of the date the Investors
receive the notice referred to in clause (ii) and the date referred to in such
notice. The provisions of Section 5(g) hereof shall not be applicable during the
period of any Allowable Grace Period. Upon expiration of the Grace Period, the
Company shall again be bound by the provisions of the first sentence of Section
5(f) with respect to the information giving rise thereto unless such material
non-public information is no longer applicable.

                  u.       The Company shall not register any of its securities
for sale for its own account (other than for issuance to employees, directors
and consultants, of the Company under an employee benefit plan or for issuance
in a business combination transaction), except pursuant to a firm commitment
underwritten offering. Except pursuant to this Agreement, the Company shall not
file any Registration Statement (other than on Form S-8) with the SEC prior to
the date that the Initial Registration Statement is declared effective by the
SEC.

                  v.       The Company shall enter into such customary
agreements (including, in the case of underwritten offering, an underwriting
agreement) and take such other actions as the any of the Investors or
underwriters, if any, may reasonably request in order to expedite and facilitate
the disposition of the Registrable Securities and any other securities covered
by a Registration Statement.

         6.       OBLIGATIONS OF THE INVESTORS.
                  ----------------------------

                  a.       At least seven (7) Business Days prior to the first
anticipated filing date of a Registration Statement and at lease five (5)
Business Days prior to the filing of any amendment or supplement Registration
Statement, the Company shall notify each Investor in writing of the information,
if any, the Company requires from each such Investor if such Investor elects to
have any of such Investor's Registrable Securities included in such Registration
Statement or, with respect to an amendment or a supplement, if such Investor's
Registrable Securities are included in such Registration Statement (each an
"Information Request"). Provided that the Company shall have complied with its
obligations set forth in the preceding sentence, it shall be a condition
precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a
particular Investor that such Investor shall furnish to the Company, in response
to an Information Request, such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request.

                                       17
<PAGE>

                  b.       Each Investor agrees to cooperate with the Company as
reasonably requested by the Company in connection with the preparation and
filing of any Registration Statement in which any Registrable Securities held by
such Investors are being included.

                  c.       Each Investor agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
5(g) or the first sentence of Section 5(f) or written notice from the Company of
an Allowable Grace Period, such Investor will promptly discontinue disposition
of Registrable Securities pursuant to any Registration Statement(s) covering
such Registrable Securities until such Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 5(g) or the first
sentence of Section 5(f) or receipt of notice that no supplement or amendment is
required or that the Allowable Grace Period has ended. Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to deliver
unlegended shares of Common Stock to a transferee of an Investor in accordance
with the terms of the Securities Exchange Agreement in connection with any sale
of Registrable Securities with respect to which an Investor provides reasonable
evidence that such Investor has entered into a contract for sale prior to the
Investor's receipt of a notice from the Company of the happening of any event of
the kind described in Section 5(g) or the first sentence of Section 5(f) and for
which the Investor has not yet settled.

         7.       EXPENSES OF REGISTRATION.
                  ------------------------

                  All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2, 3, 4 and 5, including all registration,
listing and qualifications fees, printers and accounting fees, and fees and
disbursements of counsel for the Company shall be paid by the Company. The
Company shall also reimburse the Investors for the reasonable fees and
disbursements of Legal Counsel in connection with registration, filing or
qualification pursuant to Sections 2, 3, 4 and 5, of this Agreement.

         8.       INDEMNIFICATION.
                  ---------------

                  In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

                  a.       To the fullest extent permitted by law, the Company
will, and hereby does, indemnify, hold harmless and defend each Investor and any
underwriter, and the directors, officers, partners, members, managers,
employees, agents, representatives of, and each Person, if any, who controls any
Investor or underwriter within the meaning of the 1933 Act or the 1934 Act
(each, an "Indemnified Person"), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys'
fees, amounts paid in settlement or expenses, joint or several, (collectively,
"Claims") incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by
or before any court or governmental, administrative or other regulatory agency
authority, or body (including the SEC or any state securities commission,
authority or self-regulatory organization, in the United States or anywhere else

                                       18
<PAGE>

in the world), whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("Blue Sky Filing"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in any preliminary, final, summary or free writing
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by the Company of
the 1933 Act, the 1934 Act, any other law, including any state securities law,
or any rule or regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to a Registration Statement or (iv) any material
violation of this Agreement by the Company (the matters in the foregoing clauses
(i) through (iv) being, collectively, "Violations"). Subject to Section 8(c),
the Company shall reimburse the Indemnified Persons, promptly as such expenses
are incurred and are due and payable, for any legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such
Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 8(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which
occurs in reliance upon and in conformity with information furnished in writing
to the Company by such Indemnified Person for such Indemnified Person expressly
for use in connection with the preparation of the Registration Statement or any
such amendment thereof or supplement thereto if such prospectus (or amendment or
supplement thereto) was timely filed with the SEC and furnished by the Company
to such Investor pursuant to Section 5(d), and (ii) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written consent of the Company, which consent shall not be unreasonably
withheld, conditioned or delayed. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by the
Investors pursuant to Section 11.

                  b.       In connection with any Registration Statement in
which an Investor is participating, each such Investor agrees to severally and
not jointly indemnify, hold harmless and defend, to the same extent and in the
same manner as is set forth in Section 8(a), the Company, each of its directors,
each of its officers who signs the Registration Statement, and each Person, if
any, who controls the Company within the meaning of the 1933 Act or the 1934 Act
(each an "Indemnified Party"), against any Claim or Indemnified Damages to which
any of them may become subject, under the 1933 Act, the 1934 Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in connection with
such Registration Statement; and, subject to Section 8(c), such Investor will
reimburse any legal or other expenses reasonably incurred by an Indemnified
Party in connection with investigating or defending any such Claim; provided,

                                       19
<PAGE>

however, that the indemnity agreement contained in this Section 8(b) and the
agreement with respect to contribution contained in Section 9 shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of such Investor, which consent shall not be
unreasonably withheld, conditioned or delayed; provided, further, however, that
the aggregate liability of the Investor in connection with any Violation shall
not exceed the net proceeds to such Investor as a result of the sale of
Registrable Securities pursuant to the Registration Statement giving rise to
such Claim. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Indemnified Party and shall
survive any transfer of the Registrable Securities by an Investor pursuant to
Section 11.

                  c.       Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 8 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving
a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section
8, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be. In any such proceeding, any
Indemnified Person or Indemnified Party may retain its own counsel, but, except
as provided in the following sentence, the fees and expenses of that counsel
will be at the expense of that Indemnified Person or Indemnified Party, as the
case may be, unless (i) the indemnifying party and the Indemnified Person or
Indemnified Party, as applicable, shall have mutually agreed to the retention of
that counsel, (ii) the indemnifying party does not assume the defense of such
proceeding in a timely manner or (iii) in the reasonable opinion of counsel
retained by the Indemnified Person or Indemnified Party, the representation by
such counsel for the Indemnified Person or Indemnified Party and the
indemnifying party would be inappropriate due to actual or potential differing
interests between such Indemnified Person or Indemnified Party and any other
party represented by such counsel in such proceeding. The Company shall pay
reasonable fees for up to one separate legal counsel (plus local counsel) for
the Investors, and such legal counsel shall be selected by the Investors holding
at least two-thirds (2/3) in interest of the Registrable Securities included in
the Registration Statement to which the Claim relates. The indemnifying party
shall keep the Indemnified Party or Indemnified Person fully apprised at all
times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding effected without its prior written consent,
provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other compromise with respect to
any pending or threatened action or claim in respect of which indemnification or
contribution may be or has been sought hereunder (whether or not the Indemnified
Party or Indemnified Person is an actual or potential party to such action or
claim) which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such Claim or litigation, and such
settlement shall not include any admission as to fault on the part of the
Indemnified Party. Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party or
Indemnified Person with respect to all third parties, firms or corporations

                                       20
<PAGE>

relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any
liability to the Indemnified Person or Indemnified Party under this Section 8,
except to the extent that the indemnifying party is prejudiced in its ability to
defend such action.

                  d.       The indemnification required by this Section 8 shall
be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages
are incurred.

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

         9.       CONTRIBUTION.
                  ------------

                  To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 8 to the fullest extent permitted by law; provided, however, that:
(i) no Person involved in the sale of Registrable Securities who is guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933
Act) in connection with such sale, shall be entitled to contribution from any
Person involved in such sale of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited to an amount equal to the net amount of proceeds
received by such seller from the sale of such Registrable Securities pursuant to
the Registration Statement giving rise to such action or claim for
indemnification less the amount of any damages that such seller has otherwise
been required to pay in connection with such sale.

         10.      REPORTS UNDER THE 1934 ACT.
                  --------------------------

                  With a view to making available to the Investors the benefits
of Rule 144 promulgated under the 1933 Act or any other similar rule or
regulation of the SEC that may at any time permit the Investors to sell
securities of the Company to the public without registration ("Rule 144"), the
Company agrees to:

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

                  b.       file with the SEC in a timely manner all reports and
other documents required of the Company under the 1934 Act so long as the
Company remains subject to such requirements (it being understood that nothing
herein shall limit the Company's obligations under Section 4(c) of the
Securities Exchange Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

                                       21
<PAGE>

                  c.       furnish to each Investor so long as such Investor
owns Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144 and
the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company (or
information regarding the locations thereof on the SEC's EDGAR filing system),
and (iii) such other information as may be reasonably requested to permit the
Investors to sell such securities pursuant to Rule 144 without registration.

         11.      ASSIGNMENT OF REGISTRATION RIGHTS.
                  ---------------------------------

                  The rights under this Agreement shall be automatically
assignable by the Investors to any transferee or assignee of all or any portion
of Registrable Securities if: (i) the Investor agrees in writing with the
transferee or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such transfer or
assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such
registration rights are being transferred or assigned; (iii) immediately
following such transfer or assignment the further disposition of such securities
by the transferee or assignee is restricted under the 1933 Act or applicable
state securities laws; (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this sentence, the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
contained herein; and (v) such transfer shall have been made in accordance with
the applicable requirements of the Securities Exchange Agreement.

         12.      AMENDMENT OF REGISTRATION RIGHTS.
                  --------------------------------

                  Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Investors who then hold at least two-thirds (2/3) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 10
shall be binding upon each Investor and the Company. No such amendment shall be
effective to the extent that it applies to less than all of the holders of the
Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

         13.      MISCELLANEOUS.
                  -------------

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

                  b.       Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by facsimile

                                       22
<PAGE>

(provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one (1) Business Day
after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be:

                     Sonterra Resources, Inc.
                     300 East Sonterra Boulevard, Suite 1220
                     San Antonio, Texas
                     Facsimile: 210-545-3317
                     Attention: Michael J. Pawelek

                     With a copy to:

                     Baker & McKenzie LLP
                     1114 Avenue of the America
                     New York, NY, 10036
                     Facsimile:  212-310-1786
                     Attention: Martin Eric Weisberg, Esq.

         If to Buyer:

                     The Longview Fund, L.P.
                     c/o Viking Asset Management, LLC
                     600 Montgomery Street, 44th Floor
                     San Francisco, CA  94111
                     Facsimile: 415-981-5301
                     Attention: Michael Rudolph

                     With a copy to:

                     c/o Viking Asset Management, LLC
                     10 Glenville Street, 3rd Floor
                     Greenwich, Connecticut 06831
                     Attention: Robert J. Brantman
                     Facsimile: 646-840-4958

                     And with a copy to:

                     Katten Muchin Rosenman LLP
                     525 W. Monroe Street
                     Chicago, Illinois 60661-3693
                     Attention: Mark D. Wood, Esq.
                     Facsimile: 312-902-1061

         If to Legal Counsel, to Katten Muchin Rosenman LLP as set forth above.

                                       23
<PAGE>

         Or, in the case of a Buyer or other party named above, to such other
address and/or facsimile number and/or to the attention of such other person as
the recipient party has specified by written notice given to each other party at
least five (5) days prior to the effectiveness of such change.

         If to an Investor (other than the Buyer), to such Investor at the
address and/or facsimile number reflected in the records or the Company.

         Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender's facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such
transmission or (C) provided by a courier or overnight courier service shall be
rebuttable evidence of personal service, receipt by facsimile or deposit with a
nationally recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively. Notwithstanding the foregoing, the Company or
its counsel may transmit versions of any Registration Statement (or any
amendments or supplements thereto) to Legal Counsel in satisfaction of its
obligations under Section 5(c) to permit Legal Counsel to review such
Registration Statement prior to filing (and solely for such purpose) by email to
mark.wood@kattenlaw.com (or such other e-mail address as has been provided for
such purpose by Legal Counsel) and provided that delivery and receipt of such
transmission shall be confirmed by electronic, telephonic or other means.

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

                  d.       All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting
the City of New York, borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof by registered or certified mail, return
receipt requested, or by deposit with a nationally recognized overnight delivery
service, to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND

                                       24
<PAGE>

AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

                  e.       This Agreement and the other Transaction Documents
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement and the other Transaction Documents supersede all prior
agreements and understandings among the parties hereto with respect to the
subject matter hereof and thereof.

                  f.       Subject to the requirements of Section 9, this
Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto.

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

                  h.       This Agreement and any amendments hereto may be
executed and delivered in one or more counterparts, and by the different parties
hereto in separate counterparts, each of which when executed shall be deemed to
be an original, but all of which taken together shall constitute one and the
same agreement, and shall become effective when counterparts have been signed by
each party hereto and delivered to the other parties hereto, it being understood
that all parties need not sign the same counterpart. In the event that any
signature to this Agreement or any amendment hereto is delivered by facsimile
transmission or by e-mail delivery of a ".pdf" format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or ".pdf" signature page were an original thereof. No party hereto
shall raise the use of a facsimile machine or e-mail delivery of a ".pdf" format
data file to deliver a signature to this Agreement or any amendment hereto or
the fact that such signature was transmitted or communicated through the use of
a facsimile machine or e-mail delivery of a ".pdf" format data file as a defense
to the formation or enforceability of a contract and each party hereto forever
waives any such defense.

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

                  j.       All consents and other determinations to be made by
the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by Investors holding at least two-thirds (2/3) of
the Registrable Securities, determined as if the Warrant (any other securities
exercisable or exchangeable for, or convertible into Registrable Securities)
then outstanding have been converted into or exercised or exchanged for
Registrable Securities, without regard to any limitations on the exercise of the
Warrants (or any such other securities). Any consent or other determination

                                       25
<PAGE>

approved by Investors as provided in the immediately preceding sentence shall be
binding on all Investors.

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

                  l.       Each Buyer and each holder of the Securities shall
have all rights and remedies set forth in the Transaction Documents and all
rights and remedies that such Buyers and holders have been granted at any time
under any other agreement or contract and all of the rights that such Buyers and
holders have under any law. Any Person having any rights under any provision of
this Agreement shall be entitled to enforce such rights specifically (without
posting a bond or other security or proving actual damages), to recover damages
by reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law or in equity.

                  m.       This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns and, to the
extent provided in Sections 8(a) and 8(b) hereof, each Investor, any
underwriter, and the directors, officers, partners, members, managers,
employees, agents, representatives of, and each Person, if any, who controls any
Investor or underwriter within the meaning of the 1933 Act or the 1934 Act and
each of the Company's directors, each of the Company's officers who signs the
Registration Statement, and each Person, if any, who controls the Company within
the meaning of the 1933 Act or the 1934 Act, and is not for the benefit of, nor
may any provision hereof be enforced by, any other Person.

                  n.       The Company shall not grant any Person any
registration rights with respect to shares of Common Stock or any other
securities of the Company other than registration rights that will not adversely
affect the rights of the Investors hereunder (including by limiting in any way
the number of Registrable Securities that could be included in any Registration
Statement pursuant to Rule 415) and shall not otherwise enter into any agreement
that is inconsistent with the rights granted to the Investors hereunder.

                  o.       The obligations of each Investor hereunder are
several and not joint with the obligations of any other Investor, and no
provision of this Agreement is intended to confer any obligations on any
Investor vis-a-vis any other Investor. Nothing contained herein, and no action
taken by any Investor pursuant hereto, shall be deemed to constitute the
Investors as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Investors are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated herein.

                  p.       Unless the context otherwise requires, (a) all
references to Sections, Schedules or Exhibits are to Sections, Schedules or
Exhibits contained in or attached to this Agreement, (b) words in the singular
or plural include the singular and plural and pronouns stated in either the
masculine, the feminine or neuter gender shall include the masculine, feminine
and neuter and (c) the use of the word "including" in this Agreement shall be by
way of example rather than limitation.

                                       26
<PAGE>

                                   * * * * * *

                                       27
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

COMPANY:                                     BUYER:
--------                                     ------

SONTERRA RESOURCES, INC.                     THE LONGVIEW FUND, L.P.

                                             By:  Viking Asset Management, LLC
                                             Its: Investment Adviser

By:     ___________________________          By:     ___________________________
Name:   ___________________________          Name:   Wayne H. Coleson
Title:  ___________________________          Title:  Chief Investment Officer

<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn:

     Re:       Sonterra Resources, Inc.
               ------------------------

Ladies and Gentlemen:

         We are counsel to Sonterra Resources, Inc., a Delaware corporation (the
"Company"), and have represented the Company in connection with that certain
Securities Exchange Agreement (the "Purchase Agreement") entered into by and
among the Company and the buyers named therein (collectively, the "Holders")
pursuant to which the Company issued to the Holders shares of Common Stock of
the Company (the "Common Stock") and warrants (the "Warrants") to purchase
shares of Common Stock. Pursuant to the Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Holders (the "Registration
Rights Agreement"), pursuant to which the Company agreed, among other things, to
register the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable upon exercise of the
Warrants, under the Securities Act of 1933, as amended (the "1933 Act"). In
connection with the Company's obligations under the Registration Rights
Agreement, on ____________ ___, 200_, the Company filed a Registration Statement
on Form [S-__] (File No. 333-_____________) (the "Registration Statement") with
the Securities and Exchange Commission (the "SEC") relating to the Registrable
Securities, which names each of the Holders as a selling stockholder thereunder.

         In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC, and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                       Very truly yours,

                                       [ISSUER'S COUNSEL]

                                       By:_____________________________________

cc:    [LIST NAMES OF HOLDERS]Exhibit 10.13

                              EMPLOYMENT AGREEMENT
                              --------------------

         EMPLOYMENT AGREEMENT, dated as of ____________, 2007 (this
"Agreement"), by and between Sonterra Resources, Inc., a Delaware corporation
f/k/a River Capital Group, Inc. (the "Company"), and Michael J. Pawelek (the
"Employee").

                                     RECITAL
                                     -------

         The Company desires to engage Employee's services, and Employee desires
to perform such services, upon the terms, and subject to the conditions, set
forth herein.

         NOW, THEREFORE, in consideration of the covenants and promises
contained herein, the compensation and benefits received by the Employee from
the Company and the access given the Employee to the Company's confidential
information and the Company's customers, and for other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, and
with the Company's recognition of the knowledge and expertise provided by the
Employee being acknowledged, the Company and the Employee hereby agree as
follows:

         1.       Term of Employment.
                  ------------------

         Subject to the termination provisions set forth herein, the initial
term of this Agreement and the Employee's employment hereunder will be for a
term of two (2) years from the date of this Agreement (the "Initial Term"). This
Agreement shall thereafter be automatically extended for additional successive
one (1) year term unless either party gives written notice of termination to the
other party not less than ninety (90) days prior to the end of any term (in
which event this Agreement shall terminate effective as of the close of the then
existing Employment Term). The Initial Term of this Agreement and any additional
terms as extended in accordance with this Section 1 are collectively referred to
in this Agreement as the "Employment Term."

         2.       Position and Duties.
                  -------------------

                  (a)      During the Employment Term, the Employee shall serve
as [Chief Executive Officer and President]. The Employee shall have such duties,
functions, responsibilities, and authority as are from time to time delegated to
the Employee by the Board of Directors of the Company (the "Board") or are
otherwise consistent with the duties, responsibilities and authority of the
executive office held by the Employee; provided that with respect to any
specifically delegated duties, functions, responsibilities and authority, such
duties, functions, responsibilities, and authority are reasonable and customary
for a person serving in the office/position of a public company comparable to
the Company. The Chief Executive Officer and President shall report and be
accountable to the Board of Directors of the Company.

                  (b)      During the Employment Term, the Employee will: (i)
devote substantially all of his time during normal business hours to the
business of the Company, fulfill his duties and obligations under this Agreement
and use his best efforts, judgment and energy to perform, improve and advance
the business and interests of the Company in a manner consistent with the duties

<PAGE>

of his position; provided however that Employee is not prevented from serving as
a member of the board of directors of a corporation if the Company determines
that such membership is not adverse to its interests; (ii) not engage in any
business activities that are directly or indirectly competitive with any
business conducted by the Company or any of its subsidiaries or affiliates;
(iii) observe and carry out such reasonable rules, regulations, policies,
directions and restrictions as may be established from time to time by the
Board, including but not limited to, the standard policies and procedures of the
Company as in effect from time to time; and (iv) do such traveling as may be
required in connection with the performance of such duties and responsibilities.

                  (c)      The Employee acknowledges that this Agreement
contains a non-disclosure of proprietary information and non-competition
provisions, and the Employee agrees to comply with these provisions. The
Employee understands that entering into and complying with these provisions is a
condition to the Employee's continued employment with the Company and that
failure to comply with the terms of these provisions may result in immediate
termination from employment.

                  (d)      In connection with the Employee's employment by the
Company under this Agreement, the Employee shall be based at the principal
executive offices of the Company in San Antonio, Texas, except for such
reasonable travel as the performance of the Employee's duties in the business of
the Company may require. Notwithstanding the foregoing, the Board may in its
reasonable discretion determine to relocate the principal offices of the Company
for any necessary business purpose and doing so shall not be a breach of this
Agreement.

         3.       Hours of Work.
                  -------------

         The Employee's normal days and hours of work shall coincide with the
Company's regular business hours. The nature of the Employee's employment with
the Company requires flexibility in the days and hours that the Employee must
work, and may necessitate that the Employee work on other or additional days and
hours. The Company reserves the right to require the Employee, and the Employee
agrees, to work during other or further days or hours than the Company's normal
business hours.

         4.       Compensation and Benefits.
                  -------------------------

                  (a)      Base Salary. During the Employment Term, the Company
shall pay to the Employee for his services hereunder a base salary ("Base
Salary") at the rate of $200,000.00. per year, payable in installments in
accordance with the general payroll practices of the Company, or as otherwise
mutually agreed upon, but no less often than twice monthly. The Employee's Base
Salary may be subject to such adjustments as may be determined from time to time
by the Board in its sole discretion; provided, however, in no event shall the
Employee's salary be reduced unless such reduction is part of a salary reduction
applicable to all employees of the Company based upon the Company's financial
condition.

<PAGE>

                  (b)      Incentive Stock Options. The Employee shall be
eligible to receive awards of options ("Options") to purchase common stock of
the Company pursuant to and in accordance with the terms and conditions set
forth in any incentive option plan adopted by the Board in its sole discretion
(the "Option Plan"). The decision whether or not to award stock options under
the Option Plan, if adopted, to the Employee, and the amount of any such award,
shall be within the sole discretion of the Company. The definitive terms and
conditions of the Options shall be set forth in a separate option agreement to
be entered into by the Employee and the Company (the "Option Agreement"). To the
extent there is any inconsistency or conflict between the terms of the Option
Agreement and the terms of the Option Plan, the terms of the Option Plan shall
govern and control. Upon the execution of this Agreement, the Company shall
grant to the Employee options under the Company's Option Plan to acquire shares
of the Company's Common Stock having an exercise price, vesting and term, all as
described on Exhibit A attached hereto.

                  (c)      Employee Benefits. During the Employment Term, the
Employee shall be entitled to participate in all employee benefit plans
(including executive bonus plans, cash bonus awards and long-term incentive
plans), programs and arrangements that are generally made available by the
Company to its senior executives. In addition to the rights of the Employee set
forth in the preceding sentence, the Company shall provide health, dental,
disability and life insurance for the Employee under such group health, dental,
disability and life insurance plans maintained by the Company for its full-time,
salaried employees. Nothing herein shall require the Company to adopt or
maintain any type of benefit plan or policy; provided, however, the Company
shall provide health insurance for the Employee and his family at all times
during the Employment Term. The Employee acknowledges that any such plan or
policy will be subject to deductibles and co-pay requirements

                  (d)      Expenses. During the Employment Term, the Employee
shall be entitled to receive reimbursement upon a timely basis (according to the
then-current practices of the Company) for all reasonable and necessary
out-of-pocket expenses incurred by the Employee in connection with performing
his duties and responsibilities hereunder, which are reimbursable in accordance
with the Company's policies from time to time in effect, upon the presentation
by the Employee of an itemized monthly accounting of such expenditures,
including receipts where required by Company policy or federal income tax
regulations.

         5.       Vacation.
                  --------

         The Employee shall be entitled to accrue, pro rata, fifteen (15)
vacation days for each annual period during the Employment Term. Vacation days
shall be used during the applicable annual period in which they are accrued. The
Employee shall be entitled to carry over up to five (5) accrued vacation days
from one annual period to the next and all the rest of the accrued vacation time
that the Employee does not use during the applicable annual period in which they
were accrued will be forfeited unless the Company shall have requested the
Employee, in writing, to modify or postpone a previously planned vacation.

<PAGE>

         6.       Termination of Employment.
                  -------------------------

                  (a)      For Cause. The Company may terminate the Employee's
employment at any time hereunder for Cause (as defined below) (a "For Cause
Termination") upon written notice to the Employee. For purposes of this
Agreement, "Cause" shall mean any of the following:

                           (i)      dishonesty by the Employee in the
performance of his duties and obligations to the Company;

                           (ii)     the Employee's conviction of, or entering a
plea of guilty, nolo contendere or comparable plea to, any felony or to any
misdemeanor involving moral turpitude;

                           (iii)    any willful act or omission by the Employee
that is, or is likely to be, materially injurious to the financial condition or
business reputation of the Company, as determined by the Board of the Company or
an independent committee of the Board of the Company;

                           (iv)     a breach by the Employee of any material
covenant contained in this Agreement which is to be observed or performed by the
Employee, or any of the written policies of the Company the result of which is,
or is likely to be, materially injurious to the Company, as determined by the
Board of the Company or an independent committee of the Board of the Company;

                           (v)      any appropriation by the Employee of a
corporate opportunity or a material corporate asset;

                           (vi)     the Company being unable to register its
securities with the United States Securities and Exchange Commission or listed
on a stock exchange due to the failure of the Employee to make a disclosure with
respect to the Employee's background; or

                           (vii)    the failure or refusal by the Employee to
comply with a written lawful directive by the Board or any committee of the
Board that is not inconsistent with the terms hereof.

                  (b)      Without Cause. The Company may in its sole and
absolute discretion terminate Employee's employment hereunder at any time
without Cause for any or no reason. For purposes of this Agreement, a "Without
Cause Termination" shall mean a termination by the Company of Employee's
employment hereunder other than pursuant to a For Cause Termination.

                  (c)      Death. The Employee's employment hereunder shall
terminate automatically upon his death.

                  (d)      Disability. If the Disability (as defined below) of
the Employee occurs during the Employment Term, the Company may notify the
Employee of the Company's intention to terminate the Employee's employment

<PAGE>

hereunder for Disability. In such event, the Employee's employment hereunder
shall terminate effective on the 30th day following the date such notice of
termination is received by the Employee (the "Disability Effective Date"). For
purposes of this Agreement, the "Disability" of the Employee shall be deemed to
have occurred at such time as the Board determines, in its reasonable
discretion, (i) that despite any reasonable accommodation required by law, the
Employee is unable to perform the essential functions of his position hereunder
as a result of his physical or mental incapacity and (ii) that such inability
has existed or is likely to exist for a period of ninety (90) days or more in
any twelve (12) month period or for sixty (60) consecutive days.

                  (e)      Termination By The Employee.
                           ---------------------------

                           For Good Reason. The Employee may terminate his
employment hereunder if (i) there occurs a material breach by the Company of any
material provision of this Agreement by the Company, which breach is not cured
within thirty (30) days after notice by the Employee to the Company of such
breach; (ii) the Board, in its reasonable discretion, determines to relocate the
principal offices of the Company out of San Antonio, Texas, for any necessary
business purpose; or (iii) the Employee's Base Salary is reduced pursuant to the
terms of Section 4(a) hereof and is not fully restored to the original amount
set forth in Section 4(a) hereof within ninety (90) days from the date of such
reduction.

                  (f)      Notice of Termination. Any termination of the
Employee's employment hereunder by the Company or by the Employee (other than a
termination pursuant to Section 6(c)) shall be communicated by a Notice of
Termination (as defined below) to the other party hereto. For purposes of this
Agreement, a "Notice of Termination" shall mean a written notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
in the case of a termination for Disability or a For Cause Termination or a Good
Reason Termination, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's employment under
the provision so indicated, and (iii) specifies the Employment Termination Date
(as defined in Section 6(g) below). The failure by the Company or Employee, as
applicable, to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Disability, Cause or Good Reason shall not
waive any right of the Company or Employee hereunder or preclude the Company or
Employee from asserting such fact or circumstance in enforcing the Company's or
Employee's rights hereunder.

                  (g)      Employment Termination Date. For purposes of this
Agreement, "Employment Termination Date" shall mean the effective date of
termination of the Employee's employment hereunder, which date shall be (i) if
the Employee's employment is terminated by his death, the date of his death,
(ii) if the Employee's employment is terminated because of his Disability, the
Disability Effective Date, (iii) if the Employee's employment is terminated by
the Company pursuant to a For Cause Termination, the date specified in the
Notice of Termination, (iv) if the Employee's employment is terminated by the
Company pursuant to a Without Cause Termination, the date specified in the

<PAGE>

Notice of Termination and (iv) if the Employee's employment is terminated by the
Employee pursuant to a Good Reason Termination, the date on which the Notice of
Termination is given.

                  (h)      Resignation. In the event of termination of the
Employee's employment hereunder for any reason whatsoever other than the death
of the Employee, the Employee agrees that if at such time he is a member of the
Board of Directors or officer of the Company or a director or officer of any of
the Company's subsidiaries, he will promptly deliver to the Company his written
resignation from all such positions, such resignation to be effective as of the
Employment Termination Date.

         7.       Company Obligations Upon Termination of Employment.
                  --------------------------------------------------

                  (a)      Death. If the Employee's employment hereunder is
terminated by reason of the Employee's death, the Company shall pay to the
Employee's estate, in a lump sum in cash within thirty (30) days after the
Employment Termination Date, a sum equal to the Employee's accrued and unpaid
Base Salary, reimbursable expenses and vacation accrued but unpaid in each case
through the Employment Termination Date, and thereafter the Company shall have
no further obligation to the Employee under the Agreement.

                  (b)      Disability. If the Employee's employment hereunder is
terminated by reason of the Employee's Disability, the Company shall pay to the
Employee, in a lump sum in cash within thirty (30) days after the Employment
Termination Date, a sum equal to reimbursable expenses and vacation accrued but
unpaid in each case through the Employment Termination Date and thereafter the
Company shall have no further obligation to the Employee under the Agreement,
except as provided in the immediately following sentence. In addition, the
Company shall continue to provide at its expense group medical and dental
insurance, as in effect on the Employment Termination Date, to the Employee and
to the Employee's immediate family for a period of six (6) months after the
Employment Termination Date.

                  (c)      For Cause Termination. If the Employee's employment
hereunder is terminated pursuant to a For Cause Termination, the Company shall
pay to the Employee, in a lump sum in cash within thirty (30) days after the
Employment Termination Date, the Employee's accrued and unpaid Base Salary,
reimbursable expenses and vacation accrued but unpaid in each case through the
Employment Termination Date, to the extent not theretofore paid, and,
thereafter, the Company shall have no further obligations to the Employee under
this Agreement.

                  (d)      Without Cause Termination and Good Reason
Termination. If the Employee's employment hereunder is terminated by reason of a
Without Cause Termination or a Good Reason Termination pursuant to Section
6(e)(i), the Company shall pay to the Employee the Employee's Base Salary for a
period of six (6) months, at the regularly scheduled payment intervals following
the Employment Termination Date, and shall pay within thirty (30) days following
the Employment Termination Date all reimbursable expenses and vacation accrued

<PAGE>

but unpaid in each case through the Employment Termination Date and shall
continue to provide group medical and dental insurance at the Company's expense,
as in effect on the Employment Termination Date, to the Employee and to the
Employee's immediate family for such six (6) month period after the Employment
Termination Date and thereafter the Company shall have no further obligation to
the Employee under this Agreement. If the Employee's employment hereunder is
terminated by reason of a Good Reason Termination pursuant to either Section
6(e)(ii) or Section 6(e)(iii) hereof, the Company shall pay to the Employee, in
a lump sum in cash within thirty (30) days after the Employment Termination
Date, the Employee's accrued and unpaid Base Salary, reimbursable expenses and
vacation accrued but unpaid in each case through the Employment Termination
Date, to the extent not theretofore paid, and, thereafter, the Company shall
have no further obligations to the Employee under this Agreement; provided that
the Employee shall not be subject to Section 12 hereof after his termination
pursuant to either Section 6(e)(ii) or Section 6(e)(iii).

                  (e)      Sole Remedy. The receipt of payments provided for
under Section 7(d) shall be the Employee's sole and exclusive remedy for the
termination of his employment hereunder and shall be in lieu of any claim that
he might otherwise have against the Company arising from such termination. All
payments that are to be made by, and/or benefits that are to be provided, the
Company to the Employee following the Employment Termination Date shall be
subject to the Employee complying with any covenants hereunder to be observed or
performed by the Employee following termination of the Employee's employment
hereunder including, without limitation, Sections 10, 11, 12 and 13 hereof.

                  (f)      Release. Any severance payments due to Employee under
Section 7(d) shall be contingent upon Employee executing a full and general
release of any and all claims against the Company, the Board of Directors and
officers of the Company and any affiliates and representatives of the Company
arising out of Employee's employment with the Company or this Agreement in a
form acceptable to the Company.

                  (g)      No Duty to Mitigate. Employee's rights and privileges
under the first sentence of Section 7(d) shall be considered severance pay in
consideration of his past service and his past service to the Company, and his
entitlement thereto shall neither be governed by any duty to mitigate his
damages by seeking further employment nor offset by any compensation that he may
receive from future employment unless such employment is a violation of Section
12 hereof.

         8.       Compliance With Other Agreements. The Employee represents and
warrants to the Company that the execution, delivery, and performance by the
Employee of this Agreement do not and will not conflict with or result in a
violation of any provision of, or constitute a default under, any contract,
agreement, instrument, or obligation to which the Employee is a party or by
which the Employee is bound.

         9.       Employee's Compliance With Company Policies And The Law. The
Employee shall comply fully with all Company policies, procedures and rules, as

<PAGE>

determined, promulgated and modified by the Company from time to time,
including, without limitation, the Company's policies, procedures and rules
prohibiting discrimination and harassment, and concerning email and Internet
use, and the Company's Insider Trading Policy and Procedures. The Company
reserves the right to add, delete or modify any Company policy, procedure or
rule in its respective sole discretion. The Employee shall also comply fully
with all, and with all applicable U.S. federal, state and local laws,
regulations and ordinances, including, without limitation the Sarbanes-Oxley Act
of 2002.

         10.      Nondisclosure of Confidential and Proprietary Information
                  ---------------------------------------------------------

         During the Employment Term, the Employee agrees to the following:

                  (a)      The Employee acknowledges that during the Employment
Term, the Employee will have access to and possession of trade secret,
confidential information, and proprietary information (collectively, as defined
more extensively below, "Confidential Information") of the Company, its parents,
subsidiaries and affiliates and their respective customers, suppliers and other
third party that do business with them. The Employee recognizes and acknowledges
that this Confidential Information is valuable, special and unique to the
Company's business, is owned solely by and is the exclusive property of the
Company, is to be used only for the Company's benefit, and that access to and
knowledge thereof are essential to the performance of the Employee's duties to
the Company. During Employment Term and thereafter, the Employee will keep
secret and will not use or disclose, reveal, transfer, reproduce, sell,
capitalize upon or take advantage of such Confidential Information relating to
the Company, its customers, suppliers or other third party that do business with
it except at the request of the Company, and in addition, Employee shall
exercise all reasonable efforts and precautions to protect such disclosure,
breach of confidentiality, or other conduct or action inconsistent with the
Employee's rights; provided, however, that Confidential Information may be
disclosed to the extent (i) required by law or court order or (ii) generally
available to the public other then by unauthorized disclosure.

                  (b)      The term "Confidential Information", means
information in whatever form be it written, digital, graphic, electronically
stored, orally transmitted or memorized concerning:

                           (i)      the Company's business or operations plans,
strategies, portfolio, prospects or objectives;

                           (ii)     the Company's structure, products, product
development, technology, distribution, sales, services, support and marketing
plans, practices, and operations;

                           (iii)    the prices, costs, and details of the
Company's services;

                           (iv)     research and development, new products,
licenses, operations or plans;

<PAGE>

                           (v)      trade secrets, proprietary information,
trade and service marks, inventions, mask works, ideas, processes, formulas,
source and object codes, data, programs, other works of authorship, know-how,
discoveries, developments, designs, schematics, manuals, drawings, computer
disks and programs, techniques, employee suggestions, development tools,
computer printouts, and improvements (hereinafter referred to as "Inventions");

                           (vi)     customers and customer lists, including
present and potential customers, prospects or targets (including without
limitation, the identities of customers, names, addresses, contact, persons and
the customers' business status or needs), customer files and records;

                           (vii)    information regarding the skills,
compensation and benefits of other employees of the Company;

                           (viii)   financial records, unpublished financial
statements, financial condition, results of the Company's operations and related
information about the Company;

                           (ix)     any other financial, commercial, business or
technical information related to any of the products or services made, developed
or sold by the Company or its customers.

                  (c)      The Employee further recognizes that the Company has
received and in the future will receive from third parties confidential or
proprietary information ("Third Party Information") subject to a duty on the
Company's part to maintain the confidentiality of such information and to use it
only for certain limited purposes. During the Employment Term and thereafter,
the Employee will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than Company personnel who need to know such
information in connection with their work for the Company) or use, except in
connection with work for the Company, Third Party Information unless expressly
authorized by the Company in writing.

                  (d)      The Employee further agrees to store and maintain all
Confidential Information in a secure place. On the termination of employment,
Employee agrees to deliver all records, data, information, and other documents
produced or acquired during the Employment Term, and all copies thereof, to the
Company. Such material at all times will remain the exclusive property of the
Company, unless otherwise agreed to in writing by the Company. Upon termination
of the employment, the Employee agrees to make no further use of any
Confidential Information on his or her own behalf or on behalf of any other
person or entity other than the Company.

                  (e)      During the Employment Term and thereafter, the
Employee will not improperly use or disclose any confidential information or
trade secrets, if any, of any former employer or any other person to whom the
Employee has an obligation of confidentiality, and will not bring onto the
premises of the Company any unpublished documents or any property belonging to
any former employer or any other person to whom the Employee has an obligation

<PAGE>

of confidentiality unless consented to in writing by that former employer or
person.

         11.      Assignment of Inventions and Intellectual Property
                  --------------------------------------------------

                  (a)      The term "Proprietary Rights" will mean all trade
secret, trademark, service mark, patent, copyright, mask work and other
intellectual property rights throughout the world. The term "Inventions" shall
mean all trade secrets, trade and service marks, inventions, mask works, ideas,
processes, formulas, source and object codes, data, programs, technology,
writings, software programs, other works of authorship, know how, discoveries,
developments, designs, techniques or any claim of rights (or any related
improvements or modifications to the foregoing).

                  (b)      In consideration of the Employee's employment, the
Employee hereby assigns and agrees to assign in the future (when any such
Inventions or Proprietary rights are first reduced to practice or first fixed in
an tangible medium, as applicable) to the Company all right, title and interest
in and to any and all Inventions (and all Proprietary Rights with respect
thereto) whether or not patentable or registrable under copyright or similar
statutes, made or conceived or reduced to practice or learned by the Employee,
either alone or jointly with others, during or at any time before or after the
period of employment with the Company, which (i) relate to methods, apparatus,
designs, products, processes or devices sold, leased, used or under construction
or development by the Company or any subsidiary or otherwise relate to or
pertain to the actual or anticipated business, functions, operations, research
or development of the Company or any subsidiary, (ii) arise (wholly or partly)
from the Employee's efforts during any time that the Employee is either
physically present on the Company's premises or utilizing any physical or
intellectual property owned or leased by the Company, or (iii) is based on any
information or knowledge gained by the Employee through his or her employment
with the Company. Inventions assigned to the Company, or to a third party as
directed by the Company pursuant to this Section, are hereinafter referred to as
"Company Inventions."

                  (c)      During the Employment Term and for eighteen (18)
months thereafter, the Employee will promptly disclose to the Company, fully and
in writing, all Inventions authored, conceived or reduced to practice by the
Employee, either alone or jointly with others. In addition, the Employee will
promptly disclose to the Company all patent applications filed by the Employee
or on behalf of the Employee within eighteen (18) months after termination of
employment. At the time of each such disclosure, the Employee will advise the
Company in writing of any Inventions that he or she believes fully qualifies for
protection under the Law; and the Employee will at that time provide to the
Company in writing all evidence necessary to substantiate that belief.

                  (d)      The Employee also agrees to assign all right, title
and interest in and to any particular Company Invention to a third party, as
directed by the Company.

                  (e)      The Employee will assist the Company in every proper
way to obtain, and from time to time enforce the Company's Proprietary Rights
relating to Company Inventions in any and all countries. To that end the

<PAGE>

Employee will execute, verify and deliver such documents and perform such other
acts (including appearances as a witness) as the Company may reasonably request
for use in applying for, obtaining, perfecting, evidencing, sustaining and
enforcing such Proprietary Rights and the assignment thereof. In addition, the
Employee will execute, verify and deliver assignments of such Proprietary Rights
to the Company or its designee. The Employee's obligation to assist the Company
with respect to Proprietary Rights relating to such Company Inventions in any
and all countries will continue beyond the termination of employment and the
Company will provide compensation at a reasonable rate after termination for the
time actually spent by me at the Company's request on such assistance.

                  (f)      In the event the Company is unable for any reason,
after reasonable effort, to secure the Employee's signature on any document
needed in connection with the actions specified in the preceding paragraph, the
Employee hereby irrevocably appoints the Company and its duly authorized
officers and agents as the Employee's agent and attorney in fact to act for and
in his or her behalf to sign, execute, verify and file any and all documents and
to do all other lawfully permitted acts to further the purposes of the preceding
paragraph with the same legal force and effect as if executed by the Employee.
The Employee hereby waives any quitclaims to the Company any and all claims, of
any nature whatsoever, which the Employee now or may hereafter have for
infringement of any proprietary rights assigned to the Company.

                  (g)      Notwithstanding the foregoing, the Employee shall not
be prohibited by this Section 11 from using, after the Employment Term, ideas,
data, technology, know how or techniques, which are acquired or generated from
the general knowledge of the industry that the Company is engaged in.

         12.      Non-Competition.
                  ---------------

                  (a)      Employee will, as a result of his employment with the
Company, be involved with and exposed to substantial business resources and
assets of the Company and certain of its affiliates and will develop additional
contacts and relationships with numerous individuals and companies, which are
also involved in the business of the Company or businesses related thereto. Such
individuals and organizations will have business and contractual relationships
with the Company and/or its affiliates that will be a valuable asset thereof.
The Employee also recognizes and agrees with the Company that the services which
the Employee will render during the term of employment are unique, special and
of extraordinary character, that the Company will be substantially dependent
upon such services to develop and market its products and to earn a profit, and
that the application of the Employee's knowledge and services to any competitive
business would be substantially detrimental to the Company. Accordingly, in
consideration for employment by the Company and compensation and other benefits,
including any compensation the Employee may receive after his or her employment
is terminated pursuant to this Agreement, the Employee will not, directly or
indirectly (whether as an employee, officer, executive, director, manager,
stockholder, member, lender, consultant or any other capacity), during the
period of his or her employment with the Company, and for a period of six (6)

<PAGE>

months after termination of employment hereunder for any reason whatsoever,
engage in any business or activity or otherwise compete anywhere in the United
States, with any business or activity that is competitive with any business or
activity engaged in by the Company or any of its subsidiaries or affiliates or
contemplated to be engaged in (as of the time of the termination of employment)
by the Company or any such subsidiary or affiliate; provided, however, that the
foregoing sentence shall not be applicable in the event the Employee is
terminated pursuant to Section 6(e)(ii) or Section 6(e)(iii) hereof or if the
Employee or the Company terminates this Agreement at the end of the Initial Term
or any additional term pursuant to Section 1. In addition, for a period of two
(2) years from the end of Employment Term the Employee will not induce or
attempt to induce any person or entity that is engaged in any business activity
or relationship with the Company or any subsidiary or affiliate of the Company
to terminate that activity or relationship to reduce such activity or
relationship.

                  (b)      The term "compete" as used herein means to engage,
directly or indirectly, either as a proprietor, partner, employee, commissioned
salesperson, agent, consultant, director, officer, stockholder or in any other
capacity or manner whatsoever. The provisions of this Section will not prevent
the Employee from investing any assets in securities of any corporation,
provided that such investments do not, directly or indirectly, result in the
Employee, his spouse or his children collectively (i) owning beneficially at any
time five percent (5%) or more of the equity securities of any publicly traded
corporation engaged in a business competitive with the Company, or (ii)
otherwise being able to control or actively participate in the business
decisions of such competing business

         13.      Non-Solicitation.
                  ----------------

         For the period of his employment by the Company and for two (2) years
after the date of the conclusion of such employment, the Employee will not (i)
induce, solicit or seek to influence, either directly or indirectly, any
employee of, or any person under written contract with, the Company or any of
its affiliates, to enter into any employment agreement, independent contractor
arrangement, or any other arrangement whereby such individual would perform
services for compensation, either directly or indirectly, for any person, firm,
corporation or other entity engaged in business in competition with the Company
or any of its affiliates. any Employee of the Company to leave the employ of the
Company or any subsidiary, or division thereof or other company of the Company,
or (ii) solicit any customer of the Company or any of its affiliates, or any
identified prospect or identified potential customer to which a marketing
proposal or presentation was made during the 12 month period immediately
preceding termination of the Employment Term (other than on behalf of the
Company) for any business of the type conducted by the Company (including any
form of electronic or internet commerce).

         14.      No Conflicting Obligations.
                  --------------------------

         The Employee represents and warrants that the Employee has the full
right and authority to enter into this Agreement and to render the services as
required under this Agreement, and that by executing this Agreement the Employee

<PAGE>

is not breaching any contract or legal obligation the Employee owes to any third
party, including any agreement to keep in confidence information acquired by the
Employee in confidence or in trust prior to employment by the Company. The
Employee shall not enter into any agreement or business relationship or incur
any obligations to any third party following the Effective Date that may
conflict with, or interfere with the Employee's abilities to perform, the
Employees duties and responsibilities pursuant to this Agreement.
Notwithstanding anything to the contrary set forth herein, the Company
acknowledges that the Employee providing services to BOSS Operating Company,
LLC, or affiliates thereof, pursuant to a short-term transition services
agreement or other arrangements between the Company and BOSS Operating Company,
LLC shall not be a breach of any of the covenants of the Employee set forth
herein.

         15.      Return of Company Property.
                  --------------------------

         When the Employee leaves the employ of the Company, the Employee will
deliver to the Company (and will not keep in his possession, recreate or deliver
to anyone else) any and all devices, records, recordings, data, notes, reports,
proposals, lists, correspondence, specifications, drawings, blueprints,
sketches, materials, computer materials, equipment, other documents or property,
together with all copies thereof (in whatever medium recorded), belonging to the
Company, its successors or assigns. The Employee further agrees that any
property situated on the Company's premises and owned by the Company, including
computer disks and other digital, analog or hard copy storage media, filing
cabinets or other work areas, is subject to inspection by Company personnel at
any time with or without notice. Prior to leaving, the Employee will cooperate
with the Company in completing and signing the Company's termination statement
for technical and management personnel.

         16.      Notification of New Employer.
                  ----------------------------

         In the event that the Employee leaves the employ of the Company, the
Employee hereby agrees to notify his new employer of those of the Employee's
obligations which are continuing under this Agreement after the termination
hereof.

         17.      Remedies.
                  --------

                  (a)      The Company shall be entitled to equitable relief,
including injunctive relief and specific performance as against the Employee and
his agents, for the Employee's or his agent's threatened or actual breach of
Sections 8, 9, 10 and 11 of this Agreement, as money damages for a breach
thereof would be incapable of precise estimation, uncertain, and an insufficient
remedy for an actual or threatened breach of Sections 8, 9, 10 and 11 of this
Agreement. Nothing herein shall be construed as prohibiting the Company from
pursuing any other remedies available for such breach or threatened breach of
Sections 8, 9, 10 and 11 of this Agreement, including the recovery of damages.

<PAGE>

                  (b)      The prevailing party in any legal actions arising
under this Agreement shall be reimbursed in full the legal fees for enforcement
in favor of such prevailing party.

         18.      Public Statements.
                  -----------------

         Employee agrees that he will not make any speeches, publish articles,
appear as a guest or a commentator on any television or radio show or issue
statements to the press regarding that in anyway pertain to the Company or to
Employee's employment with same without Company's prior approval unless pursuant
to the Employee's duties to the Company. Violation of this provision by Employee
is a material breach of this Agreement.

         19.      Notices.
                  -------

         Any notices, requests, demands or other communications required or
permitted under this Agreement will be in writing and will be deemed to have
been given when delivered personally or three (3) days after being mailed by
certified mail, return receipt requested, addressed to the party being notified
at the address of such party first set forth above, or at such other address as
such party may hereafter have designated by notice; provided, however, that any
notice of change of address will not be effective until its receipt by the party
to be charged therewith.

         20.      Miscellaneous.
                  -------------

                  (a)      Telephones, stationery, postage, e-mail, the internet
and other resources made available to the Employee by the Company, are solely
for the furtherance of the Company business.

                  (b)      All construction and interpretation of this Agreement
shall be governed by and construed in accord with the internal laws of the State
of Texas, without giving effect to that State's principles of conflicts of law.

                  (c)      The Employee and the Company agree that any provision
of this Agreement deemed unenforceable or invalid by any court of competent
jurisdiction, such provision shall be reformed and modified to make such
provision valid and to permit enforcement of the objectionable provision to the
fullest permissible extent. It is the intent of the Company and the Employee
that this Agreement be enforced to the fullest extent permitted by applicable
law. Any provision of this Agreement deemed unenforceable after modification
shall be deemed stricken from this Agreement, with the remainder of the
Agreement being given its full force and effect. If any term or other provision
of this Agreement is determined by a court of competent jurisdiction to be
invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other terms, provision and conditions of this Agreement shall
nevertheless remain in full force and effect.

<PAGE>

                  (d)      Any waiver granted by a party of any breach of or
failure to comply with any provision or condition of this Agreement by the other
party shall not be construed as, or constitute, a continuing waiver of such
provision or condition, or a waiver of any other breach of, or failure to comply
with, any other provision or condition of this Agreement, any such waiver to be
limited to the specific matter and instance for which it is given. No waiver of
any such breach or failure or of any provision or condition of this Agreement
shall be effective unless in a written instrument signed by the party granting
the waiver.

                  (e)      The Employee and the Company independently have made
all inquiries regarding the qualifications and business affairs of the other
which either party deems necessary. The Employee affirms that the Employee is
knowledgeable and sophisticated as to business matters, including the subject
matter of this Agreement, and has read and fully understands this Agreement's
meaning and legally binding effect. The Employee further affirms that, prior to
assenting to the terms of this Agreement, the Employee had been provided with a
reasonable time to review it, consult with counsel of the Employee's own choice,
and to negotiate at arm's length with the Company as to the contents of the
Agreement. The Employee further affirms that the provisions in this Agreement
represent accurately the expression of the parties' mutual intent, and that the
Employee has entered into this Agreement freely and voluntarily and without
pressure or coercion from anyone. Each party assumes the risk of any
misrepresentation or mistaken understanding or belief relied upon by either
party in entering into this Agreement. In resolving any dispute or construing
any term or provision in this Agreement, there shall be no presumption made or
inference drawn because of the inclusion of a provision not contained in a prior
draft or the deletion of a provision contained in a prior draft. The parties
acknowledge and agree that this Agreement was negotiated and drafted with each
party being represented by competent counsel of its choice and with each party
having an opportunity to participate in the drafting of the provisions hereof
and shall therefore be construed as if drafted jointly by the parties.

                  (f)      The Company and the Employee agree that the
Employee's obligations to the Company during the Employee's employment with the
Company, as well as any other obligation of the Employee under this Agreement,
may be assigned to any successor in interest to the Company or any division or
affiliate of the Company in its sole discretion and without additional
consideration or prior notice to the Employee, but that nothing requires the
Company to do so. The Employee's obligations under this Agreement are personal
in nature and may not be assigned by the Employee to any other person or entity.

                  (g)      Entire Agreement; Amendment. This Agreement contains
the entire understanding and agreement of the parties relating to the subject
matter hereof and supersedes all prior and/or contemporaneous understandings and
agreements of any kind and nature (whether written or oral) among the parties
with respect to such subject matter, all of which are merged herein. This
Agreement may not be modified, amended, altered or supplemented, except by a
written agreement executed by each of the parties hereto.

<PAGE>

                  (h)      Counterparts. This Agreement and any amendments
hereto may be executed and delivered in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement, and shall become effective when
counterparts have been signed by each party hereto and delivered to the other
parties hereto, it being understood that all parties need not sign the same
counterpart. In the event that any signature to this Agreement or any amendment
hereto is delivered by facsimile transmission or by e-mail delivery of a ".pdf"
format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such facsimile or ".pdf" signature page were an
original thereof. At the request of any party each other party shall promptly
re-execute an original form of this Agreement or any amendment hereto and
deliver the same to the other party. No party hereto shall raise the use of a
facsimile machine or e-mail delivery of a ".pdf" format data file to deliver a
signature to this Agreement or any amendment hereto or the fact that such
signature was transmitted or communicated through the use of a facsimile machine
or e-mail delivery of a ".pdf" format data file as a defense to the formation or
enforceability of a contract, and each party hereto forever waives any such
defense.

                  (i)      Headings. The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

                            [Signature page follows]

<PAGE>

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement on the date first above written.

                                       SONTERRA RESOURCES, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       EMPLOYEE:

                                       _________________________________________
                                       Michael J. Pawelek

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