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EXHIBIT 10.36
AMENDMENT NO. 2 TO
SECURITIES REPURCHASE AGREEMENT
This Amendment No. 2 to Securities Repurchase Agreement (this
"AMENDMENT") is
made and entered into as of the 20th day of April, 2007 by and
among Reclamation
Consulting and Applications, Inc. ("COMPANY"), and AJW Partners,
LLC, AJW
Qualified Partners, LLC, AJW Offshore, Ltd. and New Millennium
Partners II, LLC
(collectively, the " SELLERS"). The Company and the Sellers are
sometimes
referred to herein individually as a "PARTY" and collectively as
the "PARTIES".
Capitalized terms used but not defined herein have the meanings
assigned to them
in the Securities Repurchase Agreement dated as of February 1, 2007
(the
"AGREEMENT").
WHEREAS, on February 1, 2007, the Parties entered into the
Securities
Repurchase Agreement (as amended, the "AGREEMENT") to repurchase
from the
Sellers, the Note and Warrants; and
WHERAS, the Parties have previously amended the Agreement by
executing
Amendment No. 1 dated February 26, 2007; and
WHEREAS, the Parties wish to make an additional amendment to
the
Agreement,
NOW, THEREFORE, in consideration of the mutual agreements
herein
contained, the parties agree as follows:
I.
AMENDMENTS TO THE AGREEMENT
A. Sections 1.3 and 1.4 of the Agreement are hereby deleted in
their
entirety and replaced with the following sentence:
1.3
CONSIDERATION AND PAYMENT FOR THE NOTES AND WARRANTS. In
consideration for the Notes, the Company shall (i) pay each
Seller an amount equal to the outstanding balance of principal
and, accrued interest as of the Note Closing on such Seller's
respective Note plus a prepayment penalty equal to thirty
percent (30%) of such outstanding balance which the Parties
agree shall, as of May 31, 2007, be in the amounts set forth
in EXHIBIT B, attached hereto (the "NOTE CASH PRICES"), and
(ii) issue to the Sellers three million, two hundred fifty
thousand (3,250,000) shares of the Company's restricted common
stock as set forth in EXHIBIT D, attached hereto (the "COMPANY
SHARES") (collectively, the Note Cash Prices and the Company
Shares shall constitute the "NOTE PURCHASE PRICES"). In
consideration for the Warrants, the Company shall pay to each
1
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Seller the respective amount set forth in Exhibit C attached
hereto (the "WARRANT PURCHASE PRICES"). On or before May 31,
2007, the Company shall deliver (i) the Note Purchase Prices
to the Sellers by payment of the Note Cash Prices and by
delivering stock certificates to the Sellers evidencing their
respective ownership of the Company Shares; and (ii) the
Warrant Purchase Prices to Sellers. In the event the Company
fails to deliver the Note Purchase Prices and the Warrant
Purchase Prices to the Sellers by May 31, 2007, this Agreement
shall be deemed null and void, with no binding obligation on
the part of either Party with respect to the sale of the Notes
or the Warrants. In the event the Company delivers the Note
Purchase Prices to the Sellers by May 31, 2007 but fails to
deliver the Warrant Purchase Prices, the provisions of this
Agreement relating to the sale of the Warrants shall be deemed
null and void, with no binding obligation on the part of
either Party with respect to the sale of the Warrants.
1.4 INITIAL PURCHASE DOCUMENTS. As of the Effective Date,
provided that the Company makes the payments detailed in
EXHIBIT E attached hereto (the "MONTHLY NOTE PAYMENTS") and
does not otherwise breach any material terms of this
Agreement, (i) the Sellers shall have no further rights under
the Initial Purchase Documents, (ii) the Company shall have no
further obligations under the Initial Purchase Documents, and
(iii) Gordon Davies shall have no further obligations or
responsibilities under the Guaranty and Pledge Agreement dated
June 23, 2005 and any amendments thereto. In the event, the
Company fails to make the Monthly Note Payments or breaches
any material terms of this Agreement (including any failure to
pay the Note Purchase Prices or Warrant Purchase Prices by May
31, 2007) as required hereby, the Initial Purchase Documents
shall continue in full force and effect.
B. EXHIBIT B and EXHIBIT E to the Agreement are hereby deleted in
their
en