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The following is an excerpt from a 10KSB SEC Filing, filed by RECLAIMATION CONSULTING & APPLICATIONS INC on 10/1/2004.
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ALDEROX, INC. - 10KSB - 20041001 - PART_I

PART I

ITEM 1: DESCRIPTION OF BUSINESS

I. INTRODUCTION

Reclamation Consulting and Applications, Inc., a Colorado corporation (refered to herein as "We" or the "Company" or the "Registrant" specializes in the production and sales of the AlderoxTM line of products including Alderox TM ASA-12TM, DCR TM, KR-7 TM, TSR TM,and ASA Cleaners.

Reclamation Consulting and Applications, Inc. is a Colorado corporation, originally formed in 1976 under the name Vac-Tec Systems, Inc. and reorganized as a public shell corporation without significant assets in early 1997, after we ceased operations in the glass vacuum coating business.

II. BUSINESS

Our primary business at this date is the production and sale of our AlderoxTM line of products including ASA-12TM, DCR TM, KR-7 TM, TSR TM, and ASA Cleaners. ASA-12TM is an asphalt release agent and DCR TM is a drag chain lubricant that were both developed by the Company in reponse to the asphalt industry's need for effective, economical and environmentally friendly products. KR7TM is a concrete release agent also developed by the Company in reponse to the this industry's same needs. TSRTM was specifically designed as an environmentally friendly product for the oil sands industry to reduce the build-up of clay, lime and mud on the undercarriages and sides of transport vehicles and equipment.

(a) Products and Services

(i) AlderoxTM ASA-12TM, DCRTM, KR-7TM, TSRTM and ASA Cleaners. The Company manufactures, sells and services the AlderoxTM line of products throughout the United States through North American Systems, Inc. and throughout Canada by Canadian Release Agents, Inc. AlderoxTM ASA-12TM is a ready-to-use product that allows asphalt to slide easily from truck beds. AlderoxTM DCRTM is a ready-to- use lubricant used to reduce start-up amps and eliminates power spiking while ensuring that highely polymerized asphalt mixes do not build-up on drag chains or slats. AlderoxTM KR7TM is a ready-to-use product that allows concrete to easily release from concrete molds and forms.

(ii) We have obtained government approval for all of Canada for both AlderoxTM ASA-12TM and KR-7TM and have been approved as the national standard for both products, which now carry the Canadian Environmental Choice EcoLogo. We will be applying for national standard EcoLogo status for TSRTM and DCRTM in the future. We are not aware of any Canadian government approvals necessary for the sale of TSRTM, DCRTM, or ASA Cleaners. In the United States, we have obtained approval from the Connecticut, Utah, Georgia, Washington, Colorado and Oklahoma Departments of Transportation for government use of ASA-12TM within those States. There are no government approvals required for the sale of the AlderoxTM line of products in California, Florida, Hawaii, New Jersey, Pennsylvania, West Virginia, Arizona or Oregon. We have applied for approval of AlderoxTM ASA-12TM in Texas, New York, Nevada and Wyoming. The Company is currently in the process of applying for approvals within other States. We are not aware of any United States government approvals necessary prior to the sales of AlderoxTM KR7TM, DCRTM, or ASA Cleaners.


Management believes the advantages of the AlderoxTM line of products over its competitors are as follows:

- 100% biodegradable
- Completely non-hazardous
- Easily applied
- Zero negative impact to equipment or asphalt/concrete
- Exclusive filming technology

(iii) AlderoxTM ASA-12TM, DCRTM, KR7TM, TSRTM and ASA Cleaners were designed for use in the asphalt, concrete and oil sands industries. The products are manufactured by North American Systems, Inc. and the formulations are proprietary to Reclamation Consulting and Applications, Inc. We have applied for both national and international patents and are Patent Pending on both ASA-12TM and KR-7TM. At this time, the ingredients and formulas of all other AlderoxTM products are Proprietary Trade Secrets of the Company. North American Systems, Inc. is under agreement with Reclamation Consulting And Applications, Inc. for the manufacturing of all AlderoxTM products in the United States at their Salt Lake City, Utah manufacturing facility.

(b) Marketing & Sales

Our marketing program includes the development of international markets and support of existing distributors, including North American Systems, Inc. throughout the United States and Canadian Release Agents, Inc. throughout Canada. This support includes;

the development of compliance data, sales materials, product demonstrations and sales leads. Compliance Data is performance data we generated from on-site pilot testing. This data specifically shows the characteristics of asphalt release from trucks prior to applying AlderoxTM ASA-12TM and after applying AlderoxTM ASA-12TM in comparison with other competitive products currently used by our potential customers. We utilize, and have under contract, North American Systems, Inc., nationwide for all marketing, sales, manufacturing and service of our AlderoxTM line of products. Reclamation Consulting & Applications, Inc is also under agreement with Canadian Release Agents, Inc. for the marketing, sales and service of our AlderoxTM line of products throughout Canada.

(c) Competition

We compete with over 60 other companies who have competing products. Primarily, our competition are considerably smaller than RCAI and with less financial resources who operate on a strictly regional basis. However, there are some companies who are larger, with greater financial resources and larger organizations.

Competition in this industry focuses on price, quality, features, performance, specialization, expertise, reliabilty, technology, customer relationships, marketing, advertising, sales, publicity, distribution, serving particular market niches, and appealing to particiular consumers.


(d) Raw Materials

Our products are produced by North American Systems, Inc. using 100% natural ingredients. The formulas used in our AlderoxTM line of products are proprietary and exculsive to the Company. One of the raw materials for the product is difficult to obtain. This raw material is purchased by the Company under contract from a sole service supplier.

(e) Dependence on a Few Customers

There are 2 single customers who currently dominate our business. These customers are North American Systems, Inc., the sole distributor of our AlderoxTM line of products in the United States and Canadian Release Agents, Inc., the sole distributor of our AlderoxTM line of products in Canada.

(f) Patents, Trademarks, Licenses, etc.

(i) Trade Secrets, Patents and Trademarks

We have two (2) domestic Patents Pending, two (2) international Patents Pending, two (2) Trade Secrets and five (5) Trademarks. Our Patents Pending are for AlderoxTM ASA-12TM and ALderoxTM KR-7TM. Our Trade Secrets are for the ingredients and production methods of our proprietary products AlderoxTM DCRTM and TSRTM. Our Trademarks are AlderoxTM, KR7TM , ASA-12TM, DCRTM and TSRTM.

(g) Government Regulation

There are certain government regulations through State aprovals for asphalt release agents on a State by State basis. Each State has their own approval process, with some being more stringent than others. This process is designed to assure the States that the products that are approved meet certain environmental regulations. Our customers are responsible for compliance with these regulations and we have not assumed any responsibility for compliance as a provider of products to our customers. Not all of the individual States require approval. We are not aware of any government regulations that are required prior to product sale and use of concrete release agents such as AlderoxTM KR7TM, drag chain lubricants such as AlderoxTM DCRTM , non-stick undercoatings and coatings, such as AlderoxTM TSRTM or cleaners, such as our ASA Cleaners.

(h) After Market Sales Responsibility

Reclamation Consulting and Applications, Inc. warrants to its customers that the AlderoxTM line of products will preform to their specifications.

(i) Research and Development

The technology and products sold by us are in the early stages of market acceptance. As a result, in order to accomplish a sale, a customer will typically require a significant research and development effort, in the form of testing and trials. These costs are funded in part by us, and expensed as a sales expense.


In addition, management believes there may be additional undiscoverd applications for the AlderoxTM line of products. The Company is currently exploring additional markets.

(j) Employees

We have four full-time employees, including three located in California, and one located in Connecticut.

ITEM 2. DESCRIPTION OF PROPERTY

We own no real property or personal property.

Facilities

Our corporate offices are located at 23832 Rockfield Blvd., Suite 275, Lake Forest, CA 92630. We are under a three-year lease agreement for the 876 square feet offices ending April 2005 Our monthly lease payments are $1,919.

North American Systems, Inc.'s manufacturing warehouse is located at 3558 South 900 West, Salt Lake City, UT 84104. We are under a five-year lease for this 12,020 square feet warehouse ending June 2007. Our monthly lease payments are $5289.70. Through our Distribution Agreement with North American Systems, Inc. and as long as NAS occupies the Salt Lake City warehouse, they will pay the monthly lease payment directly to the landlord while the agreement is in affect between RCAI and NAS.

ITEM 3. LEGAL PROCEEDINGS

A former employee sued the Company for a breach of contract claim arising from an employment agreement entered into between the ex- employee and the Company on April 7, 2003. The original complaint was filed on Feb. 5, 2004 and asserts the following causes of action: breach of contract, breach of covenant of good faith and fair dealing, and fraud. The plaintiff is demanding compensatory and punitive damages as well as attorneys' fees and costs.

The Company filed its Cross-Complaint on April 15, 2004 alleging breach of contract, negligence, intentional misrepresentation, rescission, and declaratory relief. An amended Cross-Complaint was filed July 6, 2004.

The amount of potential loss is $19,000 on the case. The company has accrued this amount in the accompanying financial statement.

The Company settled a lawsuit with two former employees during the year ended June 30, 2004. The former employees had alleged that the Company and its officer were liable to them for losses suffered by the former employees due to breach of employment contract. Per the settlement agreement, the Company agreed to pay to the former employees in a total amount of $128,000 in exchange of 200,000 shares of the Company's common stock. The payments will be paid in combined monthly installment of $14,333. Per the settlement agreement, these settlements shall pay off before December 31, 2004. The Company has recorded $128,000 as accrued expense in the accompanying financial statements. The Company has paid $71,109 through June 30, 2004.


ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY SHAREHOLDERS

Nothing to report.

Part II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Company's Common Stock trades over-the-counter on the Bulletin Board under the trading symbol "RCAA". The closing sales price as of Jun 30, 2004, was $0.38 per share.

Set forth below is the high and low bid information for the Company's Common Stock for each full quarterly period within the four most recent fiscal years.

                        High    Low     High    Low
Period                  Bid     Bid     Ask     Ask
---------------------  -----   -----   -----   -----
4th Quarter 2003/2004   0.50    0.33    0.55    0.39
3rd Quarter 2003/2004   0.73    0.44    0.77    0.47
2nd Quarter 2003/2004   0.82    0.60    0.85    0.62
1st Quarter 2003/2004   0.83    0.44    0.85    0.53

4th Quarter 2002/2003   0.80    0.30    0.85    0.35
3rd Quarter 2002/2003   0.36    0.13    0.45    0.19
2nd Quarter 2002/2003   0.40    0.12    0.50    0.17
1st Quarter 2002/2003   0.38    0.20    0.45    0.27

4th Quarter 2001/2002   0.30    0.22    0.49    0.35
3rd Quarter 2001/2002   0.55    0.28    0.83    0.55
2nd Quarter 2001/2002   0.42    0.36    0.55    0.43
1st Quarter 2001/2002   0.51    0.37    0.63    0.52

4th Quarter 2000/2001   1.03    0.50    1.56    1.06
3rd Quarter 2000/2001   1.4375  0.75    1.5625  1.00
2nd Quarter 2000/2001   0.58    0.27    0.79    0.35
1st Quarter 2000/2001   0.80    0.51    1.00    0.75

ITEM 6. MANAGEMENT DISCUSSION AND ANALYSIS JUNE 30, 2004 AND 2003

Twelve Month Statement of Operations

The Company has incurred net losses for twelve months ended June 30, 2004 of $2,272,770 as compared to a net loss of $1,698,498 for the twelve months ended June 30, 2003. The losses for the twelve months ended June 30, 2004 and 2003 can be attributed in part to significant costs incurred in the introduction of the Company's AlderoxTM line of products to the marketplace. Management is optimistic that sales of its proprietary AlderoxTM line of products will continue to lead towards contracts which will begin to generate significant revenues to cover the Company's operating expenses.


The revenues for the twelve months ending June 30, 2003 are $261,235 and are from the sales of AlderoxTM products. The revenues from the twelve months ending June 30, 2004 are $289,218 and are from the sales of AlderoxTM products.

The Cost of Goods Sold represents sixty four percent (64%) as compared to one hundred thirteen percent (113%) of sales for the twelve months ending June 30, 2003. The Costs of Goods are not consistent between years as a result of the varying sources, which created sales revenues in each year.

Operating expenses consist primarily of general and administrative expenses. For the twelve months ended June 30, 2004 operating expenses totaled $1,774,600 as compared to $1,823,307 for the twelve months ended June 30, 2003. The decrease in operating expenses between the years of $48,707 can be primarily attributed to the Distribution and Manufacturing Agreements with North American Systems, Inc. Consulting fees of $0 were attributed to the cost of the raising of capital to finance operations.

Interest expense and other finance charges decreased from $106,454 for the twelve months ended June 30, 2003 to $45,622 for the twelve months ending June 30, 2004. The decrease between years can be attributed to the decrease in Notes payable between years 2003 and 2004.

Liquidity and Capital Resources

As of June 30, 2004 the Company had cash and cash equivalents of $1,043, as compared to cash and cash equivalents of $300 as of June 30, 2003. At June 30, 2004, the Company had a working capital deficiency (total current liabilities in excess of total current assets) of $193,375 as compared to a working capital deficit (total current liabilities in excess of total current assets) of $1,088,216 as of June 30, 2003.

The principal use of cash for the twelve months ended June 30, 2004 and 2003 was to fund North American Systems, Inc. The Company received capital of $1,796,433 in the twelve months ended June 30, 2004 from the private sale of common stock as compared to $279,967 in the twelve months ending June 30, 2003.

The management of the Company is endeavoring to cover operating expenses in excess of revenues of the Company until adequate sales are generated, through the private sale of additional shares, but there is no insurance of success in such placement. Management projects that the Company may become profitable and will begin to generate sufficient cash flow to meet its monthly operating expenses sometime during the first quarter of the current fiscal year, but cannot guarantee this result. The Company's monthly operating expenses currently average approximately $35,000.00 per month. In addition to the raising of capital through the Private Sale of shares, the Company has secured an operating line of credit from Canvasback Company Limited in the amount of $650,000.00. During the twelve months ending June 30, 2004, the Company raised $15,000 in convertible notes payable.


ITEM 7. FINANCIAL STATEMENTS

CONTENTS

PAGE

Independent Auditors' Report ..........................  F-2

Balance Sheets ........................................  F-3

Statement of Operations ...............................  F-4

Statements of Stockholders' Equity (Deficit) ..........  F-5

Statements of Cash Flows ..............................  F-6

Notes to the Financial Statements ................  F-7-F-16


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders Reclamation Consulting and Applications, Inc.

We have audited the accompanying balance sheet of Reclamation Consulting and Applications, Inc. (formerly, Recycling Centers of America, Inc.) as of June 30, 2004 and the related statements of operations, stockholders' equity, and cash flows for each of the two years in the period ended June 30, 2004. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board ( United States) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Reclamation Consulting and Applications, Inc. as of June 30, 2004, and the results of its operations and its cash flows for each of the two years in the period ended June 30, 2004, in conformity with accounting principles generally accepted in the United States of America.

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has accumulated deficit of $ 11,112,519 as of June 30, 2004. The Company incurred net losses of $ 2,542,770 and $ 1,698,498 for the years ended June 30, 2004 and 2003 respectively. These factors as discussed in Note 15 to the financial statements, raises substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 15. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

KABANI & COMPANY, INC.

CERTIFIED PUBLIC ACCOUNTANTS
Fountain Valley, California
September 2, 2004


RECLAMATION CONSULTING AND APPLICATIONS, INC.
(FORMERLY, RECYCLING CENTERS OF AMERICA, INC.)

BALANCE SHEET
JUNE 30, 2004

ASSETS

CURRENT ASSETS:
Cash & cash equivalents $ 1,043 Accounts receivable 262,844 Notes recivable, net of allowance of

          doubtful debts of $ 270,000                   547,476
        Employee advances                                16,953
                                                      ----------
                Total current assets                    828,316

PROPERTY AND EQUIPMENT, net                              11,942
                                                      ----------
                                                    $   840,258
                                                      ==========

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:

        Accounts payable                            $   193,053
        Accrued expenses                                384,242
        Customer deposit                                  7,542
        Convertible loans                                50,104
                                                     -----------
                Total current liabilities               634,941

LONG TERM LIABILITIES:
        Note payable-related party                      121,763
        Convertible debentures                           55,850
                                                     -----------
                Total liabilities                       812,554

COMMITMENTS

STOCKHOLDERS' DEFICIT

Common stock, $.01 par value;
  Authorized shares 75,000,000;
  25,492,620 shares issued and outstanding      254,926
Additional paid in capital                   10,895,296
Treasury stock                                  (15,000)
Shares to be issued                               5,000
Accumulated deficit                         (11,112,519)
                                            ------------
       Total stockholders' equity                27,704
                                            -------------
                                           $    840,258

                                            =============

The accompanying notes are an integral part of these financial statements.


RECLAMATION CONSULTING AND APPLICATIONS, INC.
(FORMERLY, RECYCLING CENTERS OF AMERICA, INC.)

STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2004 AND 2003

                                                   2004              2003
                                                ----------        ----------
Net revenue                                $     289,218     $     261,235

Cost of revenue                                  185,280           295,675
                                               -----------       -----------
Gross loss                                       103,938           (34,440)

Total operating expenses                       2,044,600         1,823,307
                                               -----------       -----------
Loss from operations                          (1,940,662)       (1,857,747)

Non-operating income (expense):
        Interest income                           46,284                 -
        Interest expense                         (45,622)         (106,454)
        Loss on Impairment of inventory             (583)         (127,034)
        Loss on disposal of asset                (22,692)                -
        Gain (loss) on settlement of debts      (578,695)           393,537
                                             -------------     -------------
    Total non-operating income (expense)        (601,308)           160,049

Loss before income tax                        (2,541,970)       (1,697,698)
                                             -------------     -------------
Provision for income tax                             800               800

Net loss                                     $(2,542,770)     $ (1,698,498)
                                             ==============    ==============
Basic and diluted weighted average
  shares outstanding                          21,968,260        16,602,590
                                             ==============    ==============
Basic and diluted net loss per share          $    (0.12)      $     (0.10)
                                             ==============    ==============

The accompanying notes are an integral part of these financial statements.


RECLAMATION CONSULTING AND APPLICATION, INC.
(FORMERLY, RECYCLING CENTERS OF AMERICA,
INC.) STATEMENTS OF STOCKHOLDERS' DEFICIT FOR
THE YEARS ENDED JUNE 30, 2004 AND 2003

                                                 Common stock                                                      Total
                                              --------------------    Additional                                stockholders'
                                              Number of                 paid in   Treasury Stock to Accumulated    equity
                                               shares    Amount         capital    stock   be issued  deficit    (deficit)



Balance at June 30, 2002                     12,211,523 $122,495  $5,011,575  $(15,000)  $1,050,594  $(6,871,251)  $ (701,587)

Issuance of shares for cash recived in the
 prior year                                     743,594    7,436     290,002        -      (297,438)          -             -

Issuance of shares for service recived in the
 prior year                                     153,125    1,531      42,875        -       (44,406)          -             -

Issuanve of shares for debt settlement        1,875,000   18,750     690,000        -      (708,750)          -             -

Issuance of shares on loan conversion         1,253,369   12,533     330,470        -             -           -       343.003

Issuance of shares for cash                   1,138,440   11,384     207,416        -             -           -       218,800

Issuance of shares for service                1,019,608   10,196     394,014        -             -           -       404,210

Issuance of shares for compensation            425,000     4,250     113,725        -             -           -       117,975

Conversion provision on debenture and notes          -      (379)    236,632        -             -           -       236,253

Cancellation of shares issued to founder      (150,000)   (1,500)      1,500        -             -           -             -

177,918 shares of common stock to be issued
  for cash received                                  -         -           -        -         71,167          -        71,167

Net loss for the year ended June 30, 2003            -         -           -        -             -    (1,698,498) (1,698,498)
                                            ----------- ---------- ---------  -----------   ---------- -----------   -------------
Balance at June 30, 2003                    18,669,659   $186,696 $7,318,209  $(15,000)       71,167  $(8,569,749) $(1,008,677)

Issuance of shares for cash recived in the
 prior year                                    127,918      1,279     49,888         -       (51,167)           -            -

Issuance of shares for service recived in the
 prior year                                     50,000        500     19,500         -       (20,000)           -            -

Issuanve of shares for debt settlement       1,546,131     15,461  1,176,493         -             -            -    1,191,954

Issuance of shares on loan conversion           41,432        414     26,917         -             -            -       27,331

Issuance of shares for cash                  4,279,805     42,798  1,753,635         -             -            -    1,796,433

Issuance of shares for service                 777,675      7,777    519,156         -             -            -      526,933

Option granted for services                          -          -     31,500         -             -            -       31,500

10,000 shares of common stock to be issued
  for service rendered                               -          -          -         -         5,000            -        5,000

Net loss for the year ended June 30, 2004            -          -          -         -             -   (2,542,770)  (2,542,770)
                                            ----------    ------- ----------     --------      -----  ------------  -----------
Balance at June 30, 2004                    25,492,620    254,926 10,895,296     (15,000)      5,000  (11,112,519)      27,704
                                            ==========    ======= ==========     ========      =====  ============      ======

The accompanying notes are an integral part of these financial statements.


RECLAMATION CONSULTING AND APPLICATIONS, INC.
(FORMERLY, RECYCLING CENTERS OF AMERICA, INC.)

STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2004 AND 2003

                                                           2004        2003
                                                          ---------   ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                       $(2,542,770)  $(1,698,498)
        Adjustments to reconcile net loss to
          net cash used in operating activities:
                Depreciation and amortization                5,338        37,504
                Issuance of shares for services
                  and compensation                         526,933       522,185
                Shares to be issued for service              5,000             -
                Loss (gain) on settlement of debts         578,695      (393,537)
                Allowance for doubtful debts               270,000             -
                Impairment of inventory                        583       127,034
                Loss on disposal of asset                   22,692             -
                Option granted for compensation
                  and services                              31,500             -
                Debenture conversion provision                   -       236,253
                Shares to be issued for services                 -             -
                (Increase)/decrease in current assets:
                        Accounts receivable               (224,967)       34,185
                        Notes receivable                  (714,178)            -
                        Inventory                           98,116        11,186
                        Prepaid expenses                    11,476        (3,462)
                        Employee advances                   (6,523)      (10,430)
                        Other assets                         3,285        (3,285)
                Increase/(decrease) in current
                  Liabilities:
                     Accounts payable and accrued Expenses  93,672       142,020
                     Customer deposit                        7,542             -
                                                        -----------     ---------
                Total adjustments                          709,163       699,653
                                                        -----------     ---------
      Net cash used in operating activities             (1,833,607)     (998,845)
                                                        -----------     ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
        Acquisition of equipment                            (1,948)     (140,637)
                                                         ----------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
                Proceeds from convertible loans              15,000        90,604
                Repayment of convertible loans              (35,000)            -
                Proceeds from shareholder loans                   -       479,234
                Proceeds from other loans                    83,112       278,302
                Repayment of loans                          (23,246)           -
                Cash received for shares to be issued             -        71,167
                Common stock issuance for cash            1,796,433       218,800
                                                          ---------     ---------
     Net cash provided by financing activities            1,836,299     1,138,107
                                                          ---------     ---------
NET DECREASE IN CASH & CASH EQUIVALENTS                         743       (1,375)

CASH & CASH EQUIVALENTS, BEGINNING BALANCE                      300         1,675
                                                          ---------     ---------
CASH & CASH EQUIVALENTS, ENDING BALANCE              $        1,043           300
                                                          =========     =========

The accompanying notes are an integral part of these financial statements.


RECLAMATION CONSULTING AND APPLICATIONS, INC.
(FORMERLY, RECYCLING CENTERS OF AMERICA, INC.)

NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATIONS AND DESCRIPTION OF BUSINESS

Reclamation Consulting and Applications, Inc. (formerly, Recycling Centers of America, Inc.) (the "Company") is a Colorado corporation, originally formed in 1976 under the name of Vac-Tech Systems, Inc. The Company changed its name to Recycling Centers of America on March 26, 1999. On January 16, 2002, an article of amendment was filed to change the name of corporation to Reclamation Consulting and Applications, Inc.

Presently, the Company's primary business is the production and sale of Alderox TM line of products including ASA-12TM, DCR TM, KR-7 TM, TSR TM, and ASA Cleaners. ASA-12 TM is an asphalt release agent, DCR TM is a drag chain lubricant. KR7TM is a concrete release agent and TSRTM was specifically designed for the oil sands industry.

During the period ended December 31, 2003, the Company appointed North American Systems (NAS) as the sole United States distributor of Company's AlderoxTM line of products.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the Company's significant accounting policies consistently applied in the preparation of the accompanying financial statements follows:

Cash and cash equivalents

The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents.

Accounts Receivable:

The Company's customer base consists of a geographically dispersed customer's base. The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis.

Property & Equipment


Property and equipment is carried at cost. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with estimated lives of three to seven years.

Expenditures for maintenance and repairs are charged to expense as incurred.

Income taxes

The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109 (SFAS 109). Under SFAS 109, deferred income taxes are reported using the liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Revenue Recognition

The Company recognizes its revenue in accordance with the Securities and Exchange Commissions ("SEC") Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial Statements" ("SAB 104"). Revenue is recognized when merchandise is shipped to a customer.

Using Estimates

In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Statement of financial accounting standard No. 107, Disclosures about fair value of financial instruments, requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for current assets and current liabilities qualifying, as financial instruments are a reasonable estimate of fair value.

Earnings per share

Net loss per share is calculated in accordance with the Statement of financial accounting standards No. 128 (SFAS No. 128), "Earnings per share". Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.


Weighted average number of shares used to compute basic and diluted loss per share is the same in these financial statements since the effect of dilutive securities is anti-dilutive.

Stock-based compensation

In October 1995, the FASB issued SFAS No. 123, "Accounting for Stock-Based Compensation". SFAS No. 123 prescribes accounting and reporting standards for all stock-based compensation plans, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights. SFAS No. 123 requires compensation expense to be recorded (i) using the new fair value method or (ii) using the existing accounting rules prescribed by Accounting Principles Board Opinion No. 25, "Accounting for stock issued to employees" (APB 25) and related interpretations with pro forma disclosure of what net income and earnings per share would have been had the Company adopted the new fair value method. The company uses the intrinsic value method prescribed by APB25 and has opted for the disclosure provisions of SFAS No.123.

Issuance of shares for service

The Company accounts for the issuance of equity instruments to acquire goods and services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably measurable.

Segment Reporting

Statement of Financial Accounting Standards No. 131 ("SFAS 131"), "Disclosure About Segments of an Enterprise and Related Information" requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Currently, SFAS 131 has no effect on the Company's financial statements as substantially all of the Company's operations are conducted in one industry segment.

Recent Pronouncements

In December 2002, the FASB issued SFAS No. 148 "Accounting for Stock Based Compensation-Transition and Disclosure". SFAS No. 148 amends SFAS No. 123, "Accounting for Stock Based Compensation", to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. In addition, this Statement amends the disclosure requirements of Statement 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used, on reported results. The Statement is effective for the Companies' interim reporting period ending January 31, 2003.


In compliance with FAS No. 148, the Company has elected to continue to follow the intrinsic value method in accounting for its stock-based employee compensation plan as defined by APB No. 25 and has made the applicable disclosures below.

Had the Company determined employee stock based compensation cost based on a fair value model at the grant date for its stock options under SFAS 123, the Company's net earnings per share would have been adjusted to the pro forma amounts for the year ended June 30, 2004 and 2003, as follows ($ in thousands, except per share amounts). :

                                                  Year ended June 30,
                                            2004                      2003
                                          --------                  --------
Net loss - as reported                   $  (2,543)                $  (1,698)
Stock-Based employee compensation
  expense included in reported net
  income, net of tax                            31

Total stock-based employee
  compensation expense determined
  under fair-value-based method for all
  rewards, net of tax                          (57)                     (194)
                                          --------                   -------
Pro forma net loss                      $   (2,569)                 $ (1,892)
                                          ========                   =======


Earnings (loss) per share:

Basic, as reported                         $ (0.12)                 $  (0.10)
Diluted, as reported                       $ (0.12)                 $  (0.11)
Basic, pro forma                           $ (0.12)                 $  (0.10)
Diluted, pro forma                         $ (0.12)                 $  (0.11)

On May 15, 2003, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 150 (FAS 150), Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity. FAS 150 changes the accounting for certain financial instruments that, under previous guidance, could be classified as equity or "mezzanine" equity, by now requiring those instruments to be classified as liabilities (or assets in some circumstances) in the statement of financial position. Further, FAS 150 requires disclosure regarding the terms of those instruments and settlement alternatives. FAS 150 affects an entity's classification of the following freestanding instruments: a) Mandatorily redeemable instruments b) Financial instruments to repurchase an entity's own equity instruments c) Financial instruments embodying obligations that the issuer must or could choose to settle by issuing a variable number of its shares or other equity instruments based solely on (i) a fixed monetary amount known at inception or (ii) something other than changes in its own equity instruments d) FAS 150 does not apply to features embedded in a financial instrument that is not a derivative in its entirety. The guidance in FAS 150 is generally effective for all financial instruments entered into or modified after May 31, 2003, and is otherwise effective at the beginning of the first interim period beginning after June 15, 2003. For private companies, mandatorily redeemable financial instruments are subject to the provisions of FAS 150 for the fiscal period beginning after December 15, 2003. The adoption of SFAS 150 does not have a material effect on the earnings or financial position of the Company.


In December 2003, the Financial Accounting Standards Board (FASB) issued a revised Interpretation No. 46, "Consolidation of Variable Interest Entities" (FIN 46R). FIN 46R addresses consolidation by business enterprises of variable interest entities and significantly changes the consolidation application of consolidation policies to variable interest entities and, thus improves comparability between enterprises engaged in similar activities when those activities are conducted through variable interest entities. The Company does not hold any variable interest entities.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.

3. ACCOUNTS RECEIVABLE

All accounts receivable are trade related. These receivables are current and no reserve for uncollectible accounts is deemed necessary.

4. NOTES RECEIVABLE

The notes receivable comprises of $ 817,476 due from North American Systems Inc. (NAS), the sole United States distributor of the Company's line of AlderoxTM products, working in Salt Lake City (SLC) under a revolving loan agreement. The receivable is for the sale of all the assets of the Company in SLC as well as other amounts transferred to the distributor at various times during the period according to the agreement with NAS and is secured by assets of NAS. Part of the agreement with NAS requires that the Company will provide loans to NAS to be used towards meeting the working capital requirements until such time when NAS is able to start paying the amount owed to the Company through sale of the Company's line of AlderoxTM products. The receivable bears interest at the rate of 10% per annum. The agreement terminates October 14, 2005. As of June 30, 2004, the Company has recorded an allowance for doubtful debts of $ 270,000 against the notes receivable.

NSA also owes $ 262,844 in account receivable to the Company.

5. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at June 30, 2004:

Computers and office equipment        $   16,140
Test equipment                             4,916
                                          ------
                                          21,056
Less accumulated depreciation             (9,114)
                                          -------
Balance                                $  11,942
                                          =======

Depreciation expense was $5,338 and $37,504 for the year ended June 30, 2004 and 2003.


Disposal of fixed assets

During the year, the Company appointed North American Systems (NAS) as the sole United States distributor of the Company's products ASA-12, KR-7, TSR, DCR and cleaners. On August 1, 2003 the Company sold all the assets in Salt Lake City to NAS. The assets transferred had a carrying value of $111,834. The Company recorded $71,355 as a receivable from NAS and offset the remaining balance of $40,479 against outstanding debts to NAS.

During the year, the Company disposed off the vehicles and recorded loss of $ 22,692 in the accompanying financial statement.

6. NOTES PAYABLE - RELATED PARTY

Notes payable consisted of the following at June 30, 2004:

Note payable to shareholder
bearing interest rate of 10 %, unsecured,
payable on December 31, 2005                       $27,000

Notes payable to shareholder,
bearing interest rate of 20%, unsecured
payable on December 31, 2005                        28,000

Notes payable to shareholder,
bearing interest rate of 10%, unsecured
payable on December 31, 2005                        28,000

Notes payable bearing interest
rate of 10%, unsecured
payable on December 31, 2005                        38,763
                                                 ---------
                     Total Notes payable        $  121,763
                                                 =========

Interest expense for the year ended June 30, 2004 and June 30, 2003 amounted to $7,707 and $ 37,239 respectively.

7. CONVERTIBLE LOANS

The Company has convertible loans outstanding at June 30, 2004 totaling $50,104. The loans are convertible to stock at the price of $ 0.40 or $ 0.45. The investor has an option to convert their loan, or any portion, of to the restricted capital stock of the Company at price per the agreement and receiving one share, up front at inception of the loan, for each dollar invested. Interest will accumulate at rate of 10% per annum until conversion date and paid semi annually over the term of the agreement leaving the initial loan until expiration of the agreement convertible to Company's restricted capital stock per the agreement or principal returned with the last interest payment. Loan can be converted at any time within the 3 year loan period.


8. CONVERTIBLE DEBENTURES

The Company, through a 506 D Securities Offerings, solicited investment funds. The Convertible Debentures bear interest at ten percent (10%) per annum payable annually and are convertible into restricted common shares of the Company at $0.40 per share. The Company has the right to change the conversion price of the debentures. The Debentures are unsecured and are due and payable by December 31, 2005. The Company recorded beneficial conversion feature expense for $ 236,253 during the year ended June 30, 2003.

9. COMMITMENTS

The Company conducts its operations utilizing leased facilities and equipment under non-cancelable operating lease agreements expiring at various dates through the year 2007. Future minimum lease commitments, excluding property taxes and insurance are approximately as follows:

Year ending June 30,

2005                    $77,118
2006                     61,386
2007                     57,814
                     ===========
  Total              $  196,318

Rent expenses for all leased facilities and equipment were $ 38,661 and $75,700 for the year ended June 30, 2004 and 2003, respectively.

10. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

The majority of the Sales in the year ended June 30, 2004 and 2003 was made to a few customers. At June 30, 2004, the total sales to two major customers was $321,239 and the receivable balance from these major customers was $262,844. In fiscal year 2003, the two major customers comprised approximately $187,078 of the Company's total sale and the receivable balance from these major customers was $11,939. Management believes that customer acceptance, billing, and collection policies are adequate to minimize potential risk on trade receivables.

11. INCOME TAXES

No provision was made for Federal income tax since the Company has significant net operating loss carryforwards. Through June 30, 2004, the Company incurred net operating losses for tax purposes of approximately $11,100,000. The net operating loss carryforwards may be used to reduce taxable income through the year 2024. The availability of the Company's net operating loss carryforwards are subject to limitation if there is a 50% or more positive change in the ownership of the Company's stock. The provision for income taxes consists of the state minimum tax imposed on corporations.


Temporary differences which give rise to deferred tax assets and liabilities at June 30, 2004 comprised of depreciation and amortization and net operating loss carry forward. The gross deferred tax asset balance as of June 30, 2004 was approximately $4,440,000. A 100% valuation allowance has been established against the deferred tax assets, as the utilization of the loss carrytforwards cannot reasonably be assured.

The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Consolidated Statements of Operations:

                                                       June 30,   June 30,
                                                        2004        2003
                                                      --------    -------
Tax expense (credit) at statutory rate-federal           (34)%     (34)%
State tax expense net of federal tax                     ( 6)      ( 6)
Permanent differences                                      1         1
Changes in valuation allowance                           (39)      (39)
Tax expense at actual rate                                 -         -

12. STOCKHOLDERS' EQUITY

Common Stock:

During the year ended June 30, 2004 and 2003, the Company issued stocks at various times, as described per the following. The stocks were valued at the average fair market value of the freely trading shares of the Company as quoted on OTCBB on the date of issuance:

During the fiscal year 2004, the Company issued 4,279,805 shares of common stock for cash amounting $1,796,433 and 1,546,131 shares of common stock for settlement of debt amounting $1,191,954 and 41,432 shares of common stock for conversion of loan amounting $27,331.

The Company issued 777,675 shares of common stock for services in fiscal year 2004 for services amounting $526,933.

The Company issued 127,918 shares in the year ended June 30, 2004 for cash received in the prior year and issued 50,000 shares in the year ended June 30, 2004 for conversion of loan for prior year.

The Company has 10,000 shares of common stock to be issued for service rendered valued at $5,000.

During the fiscal year 2003, the Company issued 1,138,440 shares of common stock for cash amounting $218,800 and 1,253,369 shares of common stock for conversion of loans amounting $343,003.


The Company issued 1,019,608 shares of common stock for services in fiscal year 2003 for services amounting $404,210 and 425,000 shares of common stock for compensation amounting $117,975.

The Company issued 743,594 shares in the year ended June 30, 2003 for cash received in the prior year and issued 153,125 shares in the year ended June 30, 2003 for service received in the prior year.

The Company issued 1,875,000 shares for debt settlement recorded in the prior year.

The Company cancelled 150,000 shares for founder's shares.

The Company received cash of $71,167 for 177,918 shares to be issued.

Stock Options:

The number and weighted average exercise prices of options granted by the Company are as follows:

                                          Options       Outstanding
                                           Number         Weighted
                                             of          Average
                                           Options       Exercise
                                                           Price
                                          ---------     ------------
Outstanding June 30, 2002                 7,555,208        $0.40
Granted during the year                   1,257,500        $0.40
Exercised                                  (125,000)       (0.40)
Expired/forfeited                        (1,290,208)       (0.40)
Outstanding June 30, 2003                 7,397,500        $0.40
Granted during the year                     150,000        $0.40
Exercised                                  (921,250)       $0.40
Expired/forfeited                          (432,500)       $0.40
Outstanding June 30, 2004                 6,193,750        $0.40

Following is a summary of the status of options outstanding at June 30, 2004:

                              Outstanding Options    Exercisable Options
                              -------------------    -------------------
                                         Weighted
                                          Average      Weighted    Weighted
                                         Remaining     Average     Average
                                         Contractual   Exercise    Exercise
Exercise Price       Number       Life      Price       Number       Price
--------------      --------    --------   --------    --------   ---------
$ 0.40               181,250    4 months   $  0.40      181,250    $  0.40
$ 0.40               537,500    6 months   $  0.40      537,500    $  0.40
$ 0.40               450,000   1.5 years   $  0.40      450,000    $  0.40
$ 0.40             4,875,000   2.6 years   $  0.40    4,875,000    $  0.40
$ 0.56               150,000     5 months  $  0.56      150,000    $  0.56


The Company granted options to various consultants for services rendered. These options were accounted for using the fair value of the options granted based on the Black- Scholes option-pricing model. The Company recorded $31,500 during the year ended June 30, 2004 and $-0- in 2003 as consulting expense.

The Company accounts for stock based compensation to employees under APB 25 using the intrinsic value method.

Pro forma information regarding the effect on operations is required by SFAS 123, and has been determined as if the Company had accounted for its employee stock options under the fair value method of that statement. Pro forma information using the Black-Scholes method at the date of grant based on the following assumptions for the year ended June 30, 2004 and 2003 was as follows:

Expected life (years)          1-5 years
Risk-free interest rate      3% and 5.0%
Dividend yield                 0% and 0%
Volatility                  100% and 50%

13. SUPPLEMENTAL DISCLOSURE OF CASH FLOWS

The Company prepares its statements of cash flows using the indirect method as defined under the Financial Accounting Standard No. 95.

The Company paid income taxes of $0 and interest of $25,003 during the fiscal year 2004. The Company paid income taxes of $0 and interest of $15,400 during the fiscal year 2003.

Supplemental disclosure of non-cash investing and financing activities:

The cash flow statements do not include following non-cash investing and financing activities:

During the fiscal year 2004, the company issued 1,546,131 shares of common stock for debt settlement valued $1,191,954 and issued 41,432 shares of common stock for conversion of loan valued $27,331.

During the fiscal year 2003, the Company issued 1,253,369 shares of common stock for conversion of loans amounting $343,003.

14. LITIGATION:

A former employee sued the Company for a breach of contract claim arising from an employment agreement entered into between the ex-employee and the Company on April 7, 2003. The original complaint was filed on Feb. 5, 2004 and asserts the following causes of action: breach of contract, breach of covenant of good faith and fair dealing, and fraud. The plaintiff is demanding compensatory and punitive damages as well as attorneys' fees and costs.


The Company filed its Cross-Complaint on April 15, 2004 alleging breach of contract, negligence, intentional misrepresentation, rescission, and declaratory relief. An amended Cross-Complaint was filed July 6, 2004.

The amount of potential loss is $19,000 on the case. The company has accrued this amount in the accompanying financial statement.

The Company settled a lawsuit with two former employees during the year ended June 30, 2004. The former employees had alleged that the Company and its officer were liable to them for losses suffered by the former employees due to breach of employment contract. Per the settlement agreement, the Company agreed to pay to the former employees in a total amount of $128,000 in exchange of 200,000 shares of the Company's common stock. The payments will be paid in combined monthly installment of $14,333. Per the settlement agreement, these settlements shall pay off before December 31, 2004. The Company has recorded $128,000 as accrued expense in the accompanying financial statements. The Company has paid $71,109 through June 30, 2004.

15. GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of business. Through June 30, 2004, the Company had incurred cumulative losses of $11,112,519 including net losses of $2,542,770 and $1,698,498 for the fiscal years 2004 and 2003, respectively.

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. Management devoted considerable effort during the period ended June 30, 2004, towards (i) obtaining additional equity financing (ii) controlling of salaries and general and administrative expenses
(iii) management of accounts payable and (iv) evaluation of its distribution and marketing methods.


ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE

Nothing to report.

PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS, COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

The names, ages and positions of the directors and executive officers of the Company as of June 30, 2004, are as follows:

NAME                    AGE     POSITION                SINCE
--------------------------------------------------------------
Michael C. Davies       34     CFO, Vice President   Dec. 1997
                                   and Director

Gordon W. Davies        36      President and        Dec. 1997
                                   Director

Paul J. Petit                      Director         March 2003

The Directors serve until the next annual meeting of shareholders, or until their successors are elected.

MR. MICHAEL C. DAVIES

From 1988 to 1991 Mr. Davies was the Owner/Manager of Fuel Oil Polishing Company located in Vancouver, British Columbia, Canada. Mr. Davies' company was in the sales, marketing and project management of fuel oils polishing within the Province of British Columbia.

From 1991 to 1993 he was an Accounts Executive with Innovative Environmental Services, Ltd. in Vancouver, a company in the business of sales and marketing of wastewater treatment equipment.

From 1993 to 1994 he was the Marketing Manager for Transenviro, Inc., located in Irvine, California. Transenviro is an international supplier of wastewater treatment equipment and process design engineering.

From 1994 to 1996 Mr. Davies was the Marketing Manager for Babcock King- Wilkinson, LP, Irvine, California, a wastewater treatment business.

From 1996 to 2000 Mr. Davies has held the positions of Vice President and a Director for Aquadynamic Technologies, Inc. and Aquatek, Inc., which is a wholly owned subsidiary of Aquadynamic Technologies. Aquadynamic Technologies, Inc. was acquired by Registrant and became Registrant's wholly-owned subsidiary in November of 1997.


From 1996 to 1998 Mr. Davies held the position of Vice President, Sales/Director for Wil-Flow, Inc., the sole supplier of its patented RGD (Rapid Gravity Dewatering) wastewater sludge dewatering system.

From 1997 to the present, Mr. Davies has been the Vice President, Chief Financial Officer and a Director. Mr. Davies is the brother of Gordon Davies.

MR. GORDON W. DAVIES

From 1991 to 1994 Mr. Davies was an Accounts Executive for Innovative Environmental Services, Ltd., located in Vancouver, British Columbia, which is a company in the business of wastewater treatment equipment.

From 1993 to 1993 he held a Sales Manager position at Transenviro,Inc. in Irvine, California.

From 1994 to 1996, Mr. Davies was the Sales/Marketing & Proposals Manager for Babcock King-Wilkinson, LP in Irvine, California, and in 1996 he was the acting CEO for this company.

Babcock King-Wilkinson, LP is in the business of wastewater treatment system process design/engineering and equipment supply operations on a worldwide basis.

From 1996 to 2000 Mr. Davies has been the President and a Director of Aquadynamic Technologies, Inc. He is also a Director of Aquatek,Inc., the wholly-owned subsidiary of Aquadynamic Technologies, Inc. Aquatek,Inc. is an engineering design house and supplier of computer-automated process and motor control systems for water and wastewater treatment systems.

From 1996 to 1998 Mr. Davies was the General Manager of Wil-Flow, Inc.

From 1997 to the present, Mr. Davies has held the position of President and a Director for us. Gordon Davies is the brother of Michael Davies.

MR. PAUL J. PETIT

Born and educated in London, England, Mr. Petit is a

Graduate of the City and Guilds in Mechanical Engineering. Mr. Petit is now based in Toronto, Ontario, Canada and brings over 35 years of experience to the Company.

Specializing in international business management and acquisitions, Mr. Petit is the founder of Sherwood Data Security, Inc., a specialized data management/storage company serving Canada's major corporations and financial institutions. After nine years of building and developing this company, Mr. Petit orchestrated the sale of SDSI to Brambles PTY of Australia in 1996 after which, he was retained as President of their new division.


Section 16(a) Beneficial Ownership Reporting Compliance

The Company has received no filings under Section 16(a) of the Securities Exchange Act of 1934, and is unable to determine if forms were filed on a delinquent basis or are missing.

ITEM 10. EXECUTIVE COMPENSATION

Director Compensation

The following table reflects compensation paid or accrued during the indicated fiscal years, which end on June 30th of the indicated year with respect to compensation paid or accrued by Reclamation Consulting And Applications, Inc.

                           SUMMARY COMPENSATION TABLE
-----------------------------------------------------------------------------------------
        Annual Compensation                             Long Term Compensation
-----------------------------------------------------------------------------------------
                                                                                   All
                                        Annual  Restricted  Securities              Other
Name &                                  Compen  Stock       Underlying   LTP       Compen
Principal                               sation  Award(s)    Options/     Payouts   sation
Position  Year    Salary($)   Bonus($)    ($)     ($)        SARs(#)      ($)       ($)
--------  ----    -------     -------  --------  ----------  ----------   -------   ------
          2004    135,200                     0
          2003    135,200                     0                                 0       0
Gordon    2002    135,200                     0    150,000     950,000          0       0
Davies    2001     93,000                     0                      0          0       0
Pres      2000     81,000                     0                      0          0       0
          1999     60,000    60,000           0                750,000          0       0
          1998     60,000                     0                      0          0       0
          2004    135,200                     0                      0          0       0
          2003    135,200                     0                      0          0       0

Michael
Davies    2002    135,200                     0    150,000     950,000          0       0
CFO       2001     93,000                     0                      0          0       0
          2000     81,000                     0                      0          0       0
          1999     60,000    60,000           0                750,000          0       0
          1998     60,000                     0                      0          0       0

Paul Petit
Director  2003                                      50.000     250,000


The Company's two principal officers, Gordon Davies, Chief Executive Officer, President and a Director, and Michael Davies, Chief Financial Officer, Vice President and a Director, entered into new Employment Agreements, commencing June 30, 2004, and having a five year term. There are no changes in the new contracts other than the extension of the term from 3 years to 5 years. The Employment Agreements are identical, and provide for a base salary of $135,200 for the first year. If the Company realizes a minimum net profit for its 12 months ended June 30, 2005 of $250,000 or more, base compensation increases by 20% effective as of the beginning of the second twelve months of the Contract. If the Company realizes a net profit of at least $250,000 over the 12 months ended June 30, 2006, June 30 2007, June 30 2008 and June 30 2009 the base compensation increases by an additional 20% over the preceding year's compensation.

In addition, the Employment Agreements provide for bonuses on a sliding scale based on the Company realizing net profits each fiscal year. A bonus equal to 10% of the base salary will be paid in any fiscal year in which net profits equal or exceed $250,000. This percentage increases on a sliding scale as net

profits in any fiscal year over the three year contract term increase above $500,000, with a bonus equal to 100% of base salary to be paid if the Company in any fiscal year realizes a net income of $2,500,000 or more.

In addition, the Employment Contract grants each employee 1,500,000 options to acquire the Company's common stock. These options are all pre-existing options granted under previous contracts with each employee. All the stock option have vested under the following terms for each employee, 500,000 shares vest on January 15, 2002, 500,000 shares vest on January 15, 2003, and 500,000 shares vest on January 15, 2004. The option exercise price is $.40 per share.

These Agreements have non-compete provisions and various other provisions, including a death disability benefit of 3 months' pay plus 3 months' benefits. Copies of each of these Employment Agreements with each executive officer are attached hereto as Exhibits and by this reference incorporated herein.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information regarding the beneficial ownership of the common stock (including common stock acquirable within 60 days pursuant to options, warrants, conversion privileges or other rights) of the company as of June 30, 2004 (i) by each of the Company's directors and executive officers, (ii) all executive officers and directors as a group, and (iii) all persons known by the Company to own beneficially more than 5% of the common stock. All persons listed have sole voting and investment power over the indicated shares unless otherwise indicated.

Name                                              Shares

Michael Davies                                  2,025,807
Gordon Davies                                   2,017,400
Kurt Baum                                       3,859,341
Canvasback Company Limited                      4,003,924
                                               ----------
All Officers and Directors                     11,906,472
As a Group                                     ==========


The address for Mr. Michael Davies is 23832 Rockfield Blvd. Suite 275 Lake Forest, CA 92630

The address for Mr. Gordon Davies is 23832 Rockfield Blvd. Suite 275 Lake Forest, CA 92630

The address for Mr. Kurt Baum is 680 S. Avon Avenue, Azusa, CA 91702

The address for Canvasback Company Limited is Hannah & Waver House The Valley, Anguilla, BWI

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Nothing to Report

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

Exhibit No.   Description
----------    -----------
10.01.        Management contract for Mr. Gordon Davies

10.02.        Management contract for Mr. Michael Davies

10.03.        Agreement with North American Systems, Inc.

10.04.        Agreement with Canadian Release Agents, Inc.

10.05         Revolving Loan Agreement North American Systems, Inc.

10.06         Security Agreement North American Systems, Inc.

31.1          Rule 13a-14(a)/15d-14(a) Certifications.

31.2          Rule 13a-14(a)/15d-14(a) Certifications.

32.1          Section 1350 Certifications.

32.2          Section 1350 Certifications

ITEM 14 CONTROLS AND PROCEDURES.

(a) Within 90 days prior to the filing date of this report, with the participation of the Company's management, the Company's President and Chief Executive Officer and Vice President - Finance and Chief Financial Officer, evaluated the effectiveness of the Company's disclosure controls and procedures in accordance with Rule 13a-14 of the Securities Exchange Act of 1934 (the "Exchange Act"). Based upon that evaluation, the President and Chief Executive Officer and Vice President - Finance and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by the Company in reports that it files under the Exchange Act is recorded, processed, summarized and reported within the time period specified in the Commission's rules and procedures.

(b) Changes in Internal Controls. There were no significant changes in the Company's internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation.

SIGNATURES

In accordance with then requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Reclamation Consulting and Applications, Inc.

 /s/ Michael Davies, Secretary
 --------------------------
     Michael Davies, Secretary

/s/  Gordon Davies, President
--------------------
     Gordon Davies, President

 Date: October 01, 2004


EX 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is entered into as of the day of June 30, 2004, by and between Michael Davies ("Employee") and RECLAMATION CONSULTING AND APPLICATIONS, INC., a Colorado Corporation with its principal place of business at 23832 Rockfield Boulevard, Suite 275, Lake Forest, California 92630 ("Company").

1. RECITALS:

1.1 The company is in the business of manufacturing and marketing asphalt, cement and related products release agents in liquid form that are non-toxic, non-explosive and environmentally compatible, the formulation and ingredients of which are confidential.

1.2 Employee has experience in the businesses conducted and to be conducted by the Employer, or in related businesses, and desires to be employed by the Company, and the Company desires to employee the Employee, on the terms and conditions specified below

2. COVENANTS:

In consideration of the recitals and mutual covenants contained herein, the parties agree that:

2.1 Employment. The Company will employ Employee to serve as Executive Vice President & Chief Financial Officer with the duties listed and defined by the Company or the Board, in connection with the Company's operations and Employee does hereby accept such employment, all subject to the terms and provisions of this Agreement. Employee represents that he is legally free to enter into this agreement and that it does not conflict with any of his duties or obligations to any other person and that he is not in any way restricted by any duties or obligations to any other person from contributing his knowledge and talents to the Company in performing his duties hereunder.

2.2 Term. This Agreement shall have an initial five-year term, which shall be automatically renewed each year thereafter unless the Company, upon thirty
(30) days prior notice notifies Employee of its intent not to renew the Agreement. Notwithstanding the foregoing, the Company or the Employee may at any time terminate this Agreement and the employment relationship on thirty (30) days prior notice to the other, with the consequences hereinafter set forth.

2.3 Compensation. During the first twelve months of employment, the Company agrees to compensate Employee (from the commencement of this agreement) at the rate of not less than $135,200 per year base compensation for the first year of employment. Thereafter, Employee's annual compensation shall be increased by 20% on each anniversary date of this agreement, provided that the Company reaches a minimum net profit of $250,000. In no event shall Employee's minimum base compensation be reduced below $135,200 per year. Such compensation shall be payable monthly or on such more frequent basis as the Company may establish.

2.4 Bonuses. An annual bonus will be paid to Employee, the amount of which is based upon the Company's net profits and shall be structured as follows:

   RCAI                % of Salary      Salary           Bonus
Net Profit            Paid as Bonus     Amount           Amount

$250,000                10%             $135,200        $13,500
$500,000                20%             $135,200        $27,000
$750,000                30%             $135,200        $40,500
$1,000,000              40%             $135,200        $54,000
$1,250,000              50%             $135,200        $67,500
$1,500,000              60%             $135,200        $81,000
$1,750,000              70%             $135,200        $94,500
$2,000,000              80%             $135,200        $108,000
$2,250,000              90%             $135,200        $121,000
$2,500,000              100%            $135,200        $135,000


   RCAI                % of Salary       Salary          Bonus
Net Profit            Paid as Bonus     Amount           Amount

$250,000                10%             $162,240        $16,224
$500,000                20%             $162,240        $32,448
$750,000                30%             $162,240        $48,672
$1,000,000              40%             $162,240        $64,898
$1,250,000              50%             $162,240        $81,120
$1,500,000              60%             $162,240        $97,344
$1,750,000              70%             $162,240        $113,568
$2,000,000              80%             $162,240        $129,792
$2,250,000              90%             $162,240        $146,016
$2,500,000              100%            $162,240        $162,240


   RCAI                % of Salary      Salary           Bonus
Net Profit            Paid as Bonus     Amount           Amount

$250,000                10%             $194,688        $19,468.80
$500,000                20%             $194,688        $38,937.60
$750,000                30%             $194,688        $58,406.40
$1,000,000              40%             $194,688        $77,857.20
$1,250,000              50%             $194,688        $97,344
$1,500,000              60%             $194,688        $116,812.80
$1,750,000              70%             $194,688        $136,281.60
$2,000,000              80%             $194,688        $155,750.40
$2,250,000              90%             $194,688        $175,219.20
$2,500,000              100%            $194,688        $194,688

June 30, 2006 through June 30, 2007

   RCAI                % of Salary       Salary          Bonus
Net Profit            Paid as Bonus     Amount           Amount

$250,000                10%             $233,625.60     $23,362.56
$500,000                20%             $233,625.60     $46,727.12
$750,000                30%             $233,625.60     $70,087.68
$1,000,000              40%             $233,625.60     $93,450.24
$1,250,000              50%             $233,625.60     $116,812.80
$1,500,000              60%             $233,625.60     $140,175.36
$1,750,000              70%             $233,625.60     $163,537.92
$2,000,000              80%             $233,625.60     $186,900.48
$2,250,000              90%             $233,625.60     $210,263.04
$2,500,000              100%            $233,625.60     $233,625.60


   RCAI                % of Salary       Salary          Bonus
Net Profit            Paid as Bonus     Amount           Amount

$250,000                10%             $280,350.72     $28,035.07
$500,000                20%             $280,350.72     $56,070.14
$750,000                30%             $280,350.72     $84,105.21
$1,000,000              40%             $280,350.72     $112,140.28
$1,250,000              50%             $280,350.72     $140,175.36
$1,500,000              60%             $280,350.72     $168,210.43
$1,750,000              70%             $280,350.72     $196,245.49
$2,000,000              80%             $280,350.72     $224,280.57
$2,250,000              90%             $280,350.72     $252,315.64
$2,500,000              100%            $280,350.72     $280,350.72

2.5 Stock Options. The option to purchase 1,500,000 shares of common restricted stock in the Company has been granted in Employee's name. All options shall expire 5-years from the vesting date. 1,500,000 of these options have been carried over from Employee's previous Employment Agreement with th e Company. Options will be vested annually, subject to continued employment, and released to Employee as per the schedule below. The corresponding number of share options shall be vested to Employee at the purchase values and on the dates indicated.

No. Options             Date Available                  Exercise Price

500,000                 January 15, 2002                $0.40 per share
500,000                 January 15, 2003                $0.40 per share
500,000                 January 15, 2004                $0.40 per share

Additional stock options shall be granted to Employee each year following the above schedule on the anniversary date of this Agreement, the amount and price of which to be determined solely by the Company.

2.6 Duties. Employee agrees to devote his energies to the business of the Company and agrees to perform such reasonable responsibilities and duties as may be assigned to him from time to time by the Company or by the Company's board of directors, which shall be consistent with his position as Executive Vice President. In no event shall the Employee be precluded from activities in professional societies, or from lecturing or writing in areas of his professional expertise for reasonable periods, and Employee shall be entitled to retain fees, honoraria, publication royalties and similar compensation paid as a result of such activities.

2.7 Additional Benefits. The Company agrees to reimburse Employee promptly for or to pay on behalf of Employee, any reasonable expenses heretofore or h ereafter incurred by Employee (to the extent not paid by others) in the furtherance of the goals of the Company upon submission of a satisfactory accounting by Employee, and to provide Employee with the following additional benefits:

2.7.1 A minimum of three weeks annual paid vacation. Vacation shall accrue on a monthly basis or part thereof; however, once unused vacation has accrued to a maximum of three weeks, accrual of additional vacation shall cease until the balance of accrued vacation has been reduced below six weeks. The Company will not cause the vacation accrual to cease by withholding its approval of any of the Employee's vacation requests.

2.7.2 Any other standard benefits that may be established by the Company or its affiliates for its employees.

2.8 Non-Disclosure of Confidential Information. It is understood that employee will acquire and be informed of confidential technical and/or business information used by and belonging to the Company ("Confidential Information"), including Confidential Information as defined in the Company's EMPLOYEE NON-DISCLOSURE AND NON-COMPETITION AGREEMENT. Employee agrees that some or all of such Confidential Information is in the nature of trade secrets and is the sole property of the Company. Employee will keep confidential, and will not disclose to any third person or entity, any Confidential Information without Employer's consent and pursuant to the proceedings further defined in the Company's EMPLOYEE NON-DISCLOSURE AND NON-COMPETITION AGREEMENT.

2.9 Confidentiality after Termination of Employment. Employee agrees that upon termination of employment, he or she shall surrender promptly to the Company any and all documents and property of the Company, including, but not limited to: reports, drawings, manuals, correspondence, customer lists and other Confidential Information which he or she may possess, and all other materials and all copies thereof relating in any way to the Company's business, or in any way obtained by the Employee during the course of his employment, and that he shall not retain any copies, notes or abstracts of the foregoing. Employee further agrees that such documents, lists and information shall be and remain the sole property of the Company. All of the terms of paragraph 2.8 shall remain in full force and effect both during the continuation of employment of Employee by the Company and after the termination of employment for any reason.

2.10 Confidentiality. Employee agrees to execute standard Company documents establishing the Employee's duties of confidentiality and the rights of the Company to all inventions, trade secrets, etc., developed by the Employee in the course of his employment, namely the EMPLOYEE NON-DISCLOSURE AND NON-COMPETITION AGREEMENT.

2.11 Non-Competition. Employee agrees that during the term of his employment by Company, Employee will not engage in any way whatsoever, directly or indirectly, in any business that is competitive with the Company and its subsidiaries and affiliate operations, nor solicit or in any other manner work for or assist any business which is competitive to the Company and its subsidiaries and affiliate operations.

2.12 Non-Participation in Competitive Activities. During the term of this agreement, Employee will undertake no planning for or organization of any business activity competitive with the work he performs as an Employee of the Company and its subsidiaries and affiliate operations, and Employee will not combine or participate with other employees of the Company and its subsidiaries and affiliate operations for the purpose of organization of any such competitive business activity.

2.13 Assignment to Company of Proprietary Rights. Employee agrees to execute any and all documents and take any and all other actions necessary or desirable for the assignment to the Company and its subsidiaries and affiliate operations of all of his interests in any Confidential Information, trade secrets, copyrightable materials and patentable or patented ideas developed by him, alone or in conjunction with others, in the course of his employment by the Company.

2.14 Injunctive Relief. The parties hereto agree and acknowledge that many of the rights conveyed by this Agreement are of a unique and special nature and that the Company and its subsidiaries and affiliate operations will not have an adequate remedy at law in the event of failure of Employee to abide by its terms and conditions, nor will money damages adequately compensate for such injury. It is, therefore, agreed between the parties that in the event of breach by Employee of Employee's covenants contained in this Agreement, the Company and its subsidiaries and affiliate operations shall have the rights, among other rights, to damages sustained thereby and to a preliminary or permanent injunction to restrain Employee from the prohibited acts. Employee agrees that this Paragraph shall survive for one year after the termination of his employment, and Employee shall be bound by its terms for a period of one year subsequent to the termination of his employment, providing that the Company and its subsidiaries and affiliate operations continue to conduct the same business or businesses as they were conducting during the period of this Agreement. Nothing herein contained shall in any way limit or exclude any and all other rights granted by law or equity to the Company and its subsidiaries and affiliate operations.

2.15 Termination of Employment. If Employee's employment terminates or is terminated, the rights and obligations of the parties shall depend upon the reason for termination. Termination may occur for any one of the following reasons: termination by the Company for cause, termination by the Company without cause, termination by Employee without cause, termination by Employee with cause, or termination of Employee by reason of his death or long-term disability.

2.15.1 Termination by Company for Cause. In the event of termination by the Company for cause, which shall consist only of specific actions knowingly and intentionally taken by Employee to the specific material detriment of the Company and not reasonably intended by him to benefit the company, the Employee will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment. Employee agrees, if he is so terminated for cause, that, for a period of one year following the termination of employment of the Employee, Employee will not engage in any way whatsoever, directly or indirectly, in any business that is competitive with the Company and its subsidiaries and affiliates utilizing any Confidential Information acquired while organizing, founding, or acting as an officer, director or employee of the Company, its subsidiaries or affiliates, nor solicit customers, investors, service providers, or strategic partners of the Company, with the Company's, or its subsidiary's or affiliates' business whether by interfering with or raiding their employees, or disrupting or interfering with their relationships with customers, investors, service providers, or strategic partners. Employee will have thirty days after termination by the Company for cause to challenge the termination. Employee may challenge the termination by the Company for cause by sending written notice to that effect to the Company via registered or certified mail, postmarked no later than 30-days from the date that employee received notice from the Company that Employee was being terminated by the Company for cause. The Company and Employee will each select an arbitrator who will each review the facts surrounding the termination and the challenge. The arbitrators will decide whether the Company was justified in terminating the Employee for cause. If the arbitrators cannot agree whether the Company was justified in terminating Employee for cause, the arbitrators will select a third arbitrator who will make the determination of whether the Company was justified in terminating the Employee for cause. The arbitration proceeding shall be conducted in accordance with the provisions of California's Arbitration act, Code of Civil Procedure, Sections 1280, et seq. The Company and Employee agree to abide by the decision of the arbitration.

If the arbitrators agree or if the third arbitrator determines, as applicable, that the Company was not justified in terminating the Employee for cause, within 72 hours of receiving the arbitration decision that the termination by the Company for cause was not justified, the Company will pay Employee back pay for all salaries and benefits from the date of termination through the date of the arbitration decision. The termination will then be treated as a termination by the Company without cause, subject to the provisions of subparagraphs

2.15.2 Termination by Company without Cause. In the event of termination by the Company without cause, i.e., an involuntary termination, or notification by the Company of an intent not to renew the Agreement pursuant to paragraph 2.2 of this Agreement, Employee shall be entitled to elect to receive severance pay equal to 50% of the annual total compensation in effect in the last month of employment, but in no cause less than $67,600 and will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment.

2.15.3 Termination by Employee without Cause. In the event of termination by Employee without cause, i.e., a voluntary termination, the Employee will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment. Employee agrees, if he so terminates without cause, that, for a period of one year following the termination of employment of the Employee, Employee will not engage in any way whatsoever, directly of indirectly, in any business that is competitive with the Company and its subsidiaries and affiliates utilizing any Confidential Information acquired while organizing, founding, or acting as an officer, director or employee of the Company, its subsidiaries, or affiliates, nor solicit customers, investors, service providers, or strategic partners of the Company, or any of its subsidiaries or operating affiliates; or disrupt, damage, impair or interfere with the Company's, or its subsidiary's or affiliates' business whether by interfering with or raiding their employees, or disrupting or interfering with their relationships with customers, investors, service providers or strategic partners. Thereafter, he will be free to so compete or participate with a competitor.

2.15.4 Termination by Employee with Cause. In the event of receipt of notice of termination by Employee with cause, which shall consist only of a material breach of the agreement by the Company including, without limitation, nonpayment of salary or other compensation due, non-reimbursement of business expenses, or failure to provide either health insurance allowance or coverage or other benefits, the Company will have thirty days after receipt of notice of termination by Employee to challenge the termination by Employee with cause. The Company and Employee will each select an arbitrator who will each review the facts surrounding the termination and the challenge. The arbitrators will decide wither the Employee is justified in terminating with cause. If the arbitrators cannot agree whether the Employee is justified in terminating with cause, the arbitrators will select a third arbitrator who will make the determination of whether the Employee is justified in terminating with cause. The arbitration proceeding shall be conducted in accordance with the provisions of California's Arbitration act, Code of Civil Procedure, Sections 1280, et seq. The Company and Employee agree to abide by the decision of the arbitration.

If the arbitrators agree, or if the third arbitrator determines, as applicable, that the Employee is justified in terminating with cause, or if the Company fails to challenge the termination by the Employee with cause within the thirty day period, the Employee shall be entitled to elect to receive severance pay equal to 100% of the annual total compensation in effect in the last month of employment, but in no case less than

$135,200 and will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment plus 30 days. If the arbitrators agree, or if the third arbitrator determines, as applicable, that the Employee is not justified in terminating with cause, the termination will be treated as a termination by Employee without cause, subject to the provisions of subparagraphs 2.15.3.

2.15.5 Termination by Death or Disability. In the event of termination by reason of death of the Employee or the long-term disability of the Employee, Employee shall be entitled to termination pay equal to three month's pay plus three month's benefits, and will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment. All payments due under this paragraph will be made on the date of termination of employment. For purposes of this section, the Company may terminate the Employee due to long-term disability if the Employee is unable to perform any of his duties for a period of ninety consecutive days or more, for reasons of sickness or injury. Additionally, in the event of the long-term disability of Employee, if Employee is terminated by the Company and then subsequently recovers from the disability, Employee will be free to compete in any way whatsoever, directly or indirectly, in any business that is competitive with the Company, and may solicit or in any other manner work for or assist any business which is competitive to the Company.

2.15.6 Severance Pay. If Employee elects to receive the severance pay provided for in subparagraph 2.15.2 or 2.15.4, whichever is applicable, and that severance pay together with all other payments required by this Agreement are paid to Employee in accordance with subparagraph 2.15.7, Employee agrees that for a period of one year following the termination of employment of the Employee, Employee will not engage in any way whatsoever, directly or indirectly, in any business that is competitive with the Company and its subsidiaries and affiliates utilizing any Confidential Information acquired while organizing, founding, or acting as an officer, director or employee of the Company, its subsidiaries or affiliates, nor solicit customers, investors, service providers, or strategic partners of the Company, or any of its subsidiaries or operating affiliates; or disrupt, damage, impair or interfere with the Company's, or its subsidiary's or affiliates' business whether by interfering with or raiding their employees, or disrupting or interfering with their relationships with customers, investors, service providers or strategic partners.

If Employee elects not to receive such severance pay, Employee will be free to compete in any way whatsoever, directly or indirectly, in any business that is competitive with the Company, and may solicit or in any other manner work for or assist any business which is competitive to the Company.

2.15.7 Termination for any reason. In the event of termination for any reason, all pay due under this Agreement except for severance pay is payable by the Company on the last day of employment. Severance pay, when applicable, will be paid as follows: one-half on the last day of employment and the remaining payments in three equal monthly installments payable on the first of months four through six.

2.16 Future Agreement. This Agreement and the documents referred to herein contain the entire agreement of the parties relevant to the subject matter hereof, and it may be amended only by a written document signed by both Employee and Company.

2.17 Governing Law. The laws of California, without regard to conflicts of laws principles thereof, shall govern this agreement.

2.18 Binding Effect. This Agreement shall inure to the benefit of and be binding upon the heirs, successors and assigns of the parties hereto.

EMPLOYEE:

[Print Name]

RECLAMATION CONSULTING AND APPLICATIONS, INC.

By:

Its.


EX 10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is entered into as of the day of June 30, 2004, by and between Gordon Davies ("Employee") and RECLAMATION CONSULTING AND APPLICATIONS, INC., a Colorado Corporation with its principal place of business at 23832 Rockfield Boulevard, Suite 275, Lake Forest, California 92630 ("Company").

1. RECITALS:

1.1 The company is in the business of manufacturing and marketing asphalt, cement and related products release agents in liquid form that are non-toxic, non-explosive and environmentally compatible, the formulation and ingredients of which are confidential.

1.2 Employee has experience in the businesses conducted and to be conducted by the Employer, or in related businesses, and desires to be employed by the Company, and the Company desires to employee the Employee, on the terms and conditions specified below

2. COVENANTS:

In consideration of the recitals and mutual covenants contained herein, the parties agree that:

2.1 Employment. The Company will employ Employee to serve as President with the duties listed and defined by the Company or the Board, in connection with the Company's operations and Employee does hereby accept such employment, all subject to the terms and provisions of this Agreement. Employee represents that he is legally free to enter into this agreement and that it does not conflict with any of his duties or obligations to any other person and that he is not in any way restricted by any duties or obligations to any other person from contributing his knowledge and talents to the Company in performing his duties hereunder.

2.2 Term. This Agreement shall have an initial five-year term, which shall be automatically renewed each year thereafter unless the Company, upon thirty (30) days prior notice notifies Employee of its intent not to renew the Agreement. Notwithstanding the foregoing, the Company or the Employee may at any time terminate this Agreement and the employment relationship on thirty (30) days prior notice to the other, with the consequences hereinafter set forth.

2.3 Compensation. During the first twelve months of employment, the Company agrees to compensate Employee (from the commencement of this agreement) at the rate of not less than $135,200 per year base compensation for the first year of employment. Thereafter, Employee's annual compensation shall be increased by 20% on each anniversary date of this agreement, provided that the Company reaches a minimum net profit of $250,000. In no event shall Employee's minimum base compensation be reduced below $135,200 per year. Such compensation shall be payable monthly or on such more frequent basis as the Company may establish.

2.4 Bonuses. An annual bonus will be paid to Employee, the amount of which is based upon the Company's net profits and shall be structured as follows:

   RCAI                % of Salary      Salary          Bonus
Net Profit            Paid as Bonus     Amount          Amount

$250,000                10%             $135,200        $13,500
$500,000                20%             $135,200        $27,000
$750,000                30%             $135,200        $40,500
$1,000,000              40%             $135,200        $54,000
$1,250,000              50%             $135,200        $67,500
$1,500,000              60%             $135,200        $81,000
$1,750,000              70%             $135,200        $94,500
$2,000,000              80%             $135,200        $108,000
$2,250,000              90%             $135,200        $121,000
$2,500,000              100%            $135,200        $135,000


   RCAI                % of Salary      Salary          Bonus
Net Profit            Paid as Bonus     Amount          Amount

$250,000                10%             $162,240        $16,224
$500,000                20%             $162,240        $32,448
$750,000                30%             $162,240        $48,672
$1,000,000              40%             $162,240        $64,898
$1,250,000              50%             $162,240        $81,120
$1,500,000              60%             $162,240        $97,344
$1,750,000              70%             $162,240        $113,568
$2,000,000              80%             $162,240        $129,792
$2,250,000              90%             $162,240        $146,016
$2,500,000              100%            $162,240        $162,240


   RCAI                % of Salary       Salary         Bonus
Net Profit            Paid as Bonus     Amount          Amount

$250,000                10%             $194,688        $19,468.80
$500,000                20%             $194,688        $38,937.60
$750,000                30%             $194,688        $58,406.40
$1,000,000              40%             $194,688        $77,857.20
$1,250,000              50%             $194,688        $97,344
$1,500,000              60%             $194,688        $116,812.80
$1,750,000              70%             $194,688        $136,281.60
$2,000,000              80%             $194,688        $155,750.40
$2,250,000              90%             $194,688        $175,219.20
$2,500,000              100%            $194,688        $194,688



   RCAI                % of Salary       Salary          Bonus
Net Profit            Paid as Bonus     Amount          Amount

$250,000                10%             $233,625.60     $23,362.56
$500,000                20%             $233,625.60     $46,727.12
$750,000                30%             $233,625.60     $70,087.68
$1,000,000              40%             $233,625.60     $93,450.24
$1,250,000              50%             $233,625.60     $116,812.80
$1,500,000              60%             $233,625.60     $140,175.36
$1,750,000              70%             $233,625.60     $163,537.92
$2,000,000              80%             $233,625.60     $186,900.48
$2,250,000              90%             $233,625.60     $210,263.04
$2,500,000              100%            $233,625.60     $233,625.60


   RCAI                % of Salary       Salary          Bonus
Net Profit            Paid as Bonus     Amount           Amount

$250,000                10%             $280,350.72     $28,035.07
$500,000                20%             $280,350.72     $56,070.14
$750,000                30%             $280,350.72     $84,105.21
$1,000,000              40%             $280,350.72     $112,140.28
$1,250,000              50%             $280,350.72     $140,175.36
$1,500,000              60%             $280,350.72     $168,210.43
$1,750,000              70%             $280,350.72     $196,245.49
$2,000,000              80%             $280,350.72     $224,280.57
$2,250,000              90%             $280,350.72     $252,315.64
$2,500,000              100%            $280,350.72     $280,350.72

2.5 Stock Options. The option to purchase 1,500,000 shares of common restricted stock in the Company has been granted in Employee's name. All options shall expire 5-years from the vesting date. 1,500,000 of these options have been carried over from Employee's previous Employment Agreement with the Company. Options will be vested annually, subject to continued employment, and released to Employee as per the schedule below. The corresponding number of share options shall be vested to Employee at the purchase values and on the dates indicated.

No. Options             Date Available                  Exercise Price

500,000                 January 15, 2002                $0.40 per share
500,000                 January 15, 2003                $0.40 per share
500,000                 January 15, 2004                $0.40 per share

Additional stock options shall be granted to Employee each year following the above schedule on the anniversary date of this Agreement, the amount and price of which to be determined solely by the Company.

2.6 Duties. Employee agrees to devote his energies to the business of the Company and agrees to perform such reasonable responsibilities and duties as may be assigned to him from time to time by the Company or by the Company's board of directors, which shall be consistent with his position as Executive Vice President. In no event shall the Employee be precluded from activities in professional societies, or from lecturing or writing in areas of his professional expertise for reasonable periods, and Employee shall be entitled to retain fees, honoraria, publication royalties and similar compensation paid as a result of such activities.

2.7 Additional Benefits. The Company agrees to reimburse Employee promptly for or to pay on behalf of Employee, any reasonable expenses heretofore or hereafter incurred by Employee (to the extent not paid by others) in the furtherance of the goals of the Company upon submission of a satisfactory accounting by Employee, and to provide Employee with the following additional benefits:

2.7.1 A minimum of three weeks annual paid vacation. Vacation shall accrue on a monthly basis or part thereof; however, once unused vacation has accrued to a maximum of three weeks, accrual of additional vacation shall cease until the balance of accrued vacation has been reduced below six weeks. The Company will not cause the vacation accrual to cease by withholding its approval of any of the Employee's vacation requests.

2.7.2 Any other standard benefits that may be established by the Company or its affiliates for its employees.

2.8 Non-Disclosure of Confidential Information. It is understood that employee will acquire and be informed of confidential technical and/or business information used by and belonging to the Company ("Confidential Information"), including Confidential Information as defined in the Company's EMPLOYEE NON-DISCLOSURE AND NON-COMPETITION AGREEMENT. Employee agrees that some or all of such Confidential Information is in the nature of trade secrets and is the sole property of the Company. Employee will keep confidential, and will not disclose to any third person or entity, any Confidential Information without Employer's consent and pursuant to the proceedings further defined in the Company's EMPLOYEE NON-DISCLOSURE AND NON-COMPETITION AGREEMENT.

2.9 Confidentiality after Termination of Employment. Employee agrees that upon termination of employment, he or she shall surrender promptly to the Company any and all documents and property of the Company, including, but not limited to: reports, drawings, manuals, correspondence, customer lists and other Confidential Information which he or she may possess, and all other materials and all copies thereof relating in any way to the Company's business, or in any way obtained by the Employee during the course of his employment, and that he shall not retain any copies, notes or abstracts of the foregoing. Employee further agrees that such documents, lists and information shall be and remain the sole property of the Company. All of the terms of paragraph 2.8 shall remain in full force and effect both during the continuation of employment of Employee by the Company and after the termination of employment for any reason.

2.10 Confidentiality. Employee agrees to execute standard Company documents establishing the Employee's duties of confidentiality and the rights of the Company to all inventions, trade secrets, etc., developed by the Employee in the course of his employment, namely the EMPLOYEE NON-DISCLOSURE AND NON-COMPETITION AGREEMENT.

2.11 Non-Competition. Employee agrees that during the term of his employment by Company, Employee will not engage in any way whatsoever, directly or indirectly, in any business that is competitive with the Company and its subsidiaries and affiliate operations, nor solicit or in any other manner work for or assist any business which is competitive to the Company and its subsidiaries and affiliate operations.

2.12 Non-Participation in Competitive Activities. During the term of this agreement, Employee will undertake no planning for or organization of any business activity competitive with the work he performs as an Employee of the Company and its subsidiaries and affiliate operations, and Employee will not combine or participate with other employees of the Company and its subsidiaries and affiliate operations for the purpose of organization of any such competitive business activity.

2.13 Assignment to Company of Proprietary Rights. Employee agrees to execute any and all documents and take any and all other actions necessary or desirable for the assignment to the Company and its subsidiaries and affiliate operations of all of his interests in any Confidential Information, trade secrets, copyrightable materials and patentable or patented ideas developed by him, alone or in conjunction with others, in the course of his employment by the Company.

2.14 Injunctive Relief. The parties hereto agree and acknowledge that many of the rights conveyed by this Agreement are of a unique and special nature and that the Company and its subsidiaries and affiliate operations will not have an adequate remedy at law in the event of failure of Employee to abide by its terms and conditions, nor will money damages adequately compensate for such injury. It is, therefore, agreed between the parties that in the event of breach by Employee of Employee's covenants contained in this Agreement, the Company and its subsidiaries and affiliate operations shall have the rights, among other rights, to damages sustained thereby and to a preliminary or permanent injunction to restrain Employee from the prohibited acts. Employee agrees that this Paragraph shall survive for one year after the termination of his employment, and Employee shall be bound by its terms for a period of one year subsequent to the termination of his employment, providing that the Company and its subsidiaries and affiliate operations continue to conduct the same business or businesses as they were conducting during the period of this Agreement. Nothing herein contained shall in any way limit or exclude any and all other rights granted by law or equity to the Company and its subsidiaries and affiliate operations.

2.15 Termination of Employment. If Employee's employment terminates or is terminated, the rights and obligations of the parties shall depend upon the reason for termination. Termination may occur for any one of the following reasons: termination by the Company for cause, termination by the Company without cause, termination by Employee without cause, termination by Employee with cause, or termination of Employee by reason of his death or long-term disability.

2.15.1 Termination by Company for Cause. In the event of termination by the Company for cause, which shall consist only of specific actions knowingly and intentionally taken by Employee to the specific material detriment of the Company and not reasonably intended by him to benefit the company, the Employee will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment. Employee agrees, if he is so terminated for cause, that, for a period of one year following the termination of employment of the Employee, Employee will not engage in any way whatsoever, directly or indirectly, in any business that is competitive with the Company and its subsidiaries and affiliates utilizing any Confidential Information acquired while organizing, founding, or acting as an officer, director or employee of the Company, its subsidiaries or affiliates, nor solicit customers, investors, service providers, or strategic partners of the Company, with the Company's, or its subsidiary's or affiliates' business whether by interfering with or raiding their employees, or disrupting or interfering with their relationships with customers, investors, service providers, or strategic partners. Employee will have thirty days after termination by the Company for cause to challenge the termination. Employee may challenge the termination by the Company for cause by sending written notice to that effect to the Company via registered or certified mail, postmarked no later than 30-days from the date that employee received notice from the Company that Employee was being terminated by the Company for cause. The Company and Employee will each select an arbitrator who will each review the facts surrounding the termination and the challenge. The arbitrators will decide whether the Company was justified in terminating the Employee for cause. If the arbitrators cannot agree whether the Company was justified in terminating Employee for cause, the arbitrators will select a third arbitrator who will make the determination of whether the Company was justified in terminating the Employee for cause. The arbitration proceeding shall be conducted in accordance with the provisions of California's Arbitration act, Code of Civil Procedure, Sections 1280, et seq. The Company and Employee agree to abide by the decision of the arbitration.

If the arbitrators agree or if the third arbitrator determines, as applicable, that the Company was not justified in terminating the Employee for cause, within 72 hours of receiving the arbitration decision that the termination by the Company for cause was not justified, the Company will pay Employee back pay for all salaries and benefits from the date of termination through the date of the arbitration decision. The termination will then be treated as a termination by the Company without cause, subject to the provisions of subparagraphs

2.15.2 Termination by Company without Cause. In the event of termination by the Company without cause, i.e., an involuntary termination, or notification by the Company of an intent not to renew the Agreement pursuant to paragraph 2.2 of this Agreement, Employee shall be entitled to elect to receive severance pay equal to 50% of the annual total compensation in effect in the last month of employment, but in no cause less than $67,600 and will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment.

2.15.3 Termination by Employee without Cause. In the event of termination by Employee without cause, i.e., a voluntary termination, the Employee will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment. Employee agrees, if he so terminates without cause, that, for a period of one year following the termination of employment of the Employee, Employee will not engage in any way whatsoever, directly o f indirectly, in any business that is competitive with the Company and its subsidiaries and affiliates utilizing any Confidential Information acquired while organizing, founding, or acting as an officer, director or employee of the Company, its subsidiaries, or affiliates, nor solicit customers, investors, service providers, or strategic partners of the Company, or any of its subsidiaries or operating affiliates; or disrupt, damage, impair or interfere with the Company's, or its subsidiary's or affiliates' business whether by interfering with or raiding their employees, or disrupting or interfering with their relationships with customers, investors, service providers or strategic partners. Thereafter, he will be free to so compete or participate with a competitor.

2.15.4 Termination by Employee with Cause. In the event of receipt of notice of termination by Employee with cause, which shall consist only of a material breach of the agreement by the Company including, without limitation, nonpayment of salary or other compensation due, non-reimbursement of business expenses, or failure to provide either health insurance allowance or coverage or other benefits, the Company will have thirty days after receipt of notice of termination by Employee to challenge the termination by Employee with cause. The Company and Employee will each select an arbitrator who will each review the facts surrounding the termination and the challenge. The arbitrators will decide wither the Employee is justified in terminating with cause. If the arbitrators cannot agree whether the Employee is justified in terminating with cause, the arbitrators will select a third arbitrator who will make the determination of whether the Employee is justified in terminating with cause. The arbitration proceeding shall be conducted in accordance with the provisions of California's Arbitration act, Code of Civil Procedure, Sections 1280, et seq. The Company and Employee agree to abide by the decision of the arbitration.

If the arbitrators agree, or if the third arbitrator determines, as applicable, that the Employee is justified in terminating with cause, or if the Company fails to challenge the termination by the Employee with cause within the thirty day period, the Employee shall be entitled to elect to receive severance pay equal to 100% of the annual total compensation in effect in the last month of employment, but in no case less than

$135,200 and will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment plus 30 days. If the arbitrators agree, or if the third arbitrator determines, as applicable, that the Employee is not justified in terminating with cause, the termination will be treated as a termination by Employee without cause, subject to the provisions of subparagraphs 2.15.3.

2.15.5 Termination by Death or Disability. In the event of termination by reason of death of the Employee or the long-term disability of the Employee, Employee shall be entitled to termination pay equal to three month's pay plus three month's benefits, and will receive all unpaid salary, bonuses, and other benefits accrued through the last day of employment. All payments due under this paragraph will be made on the date of termination of employment. For purposes of this section, the Company may terminate the Employee due to long-term disability if the Employee is unable to perform any of his duties for a period of ninety consecutive days or more, for reasons of sickness or injury. Additionally, in the event of the long-term disability of Employee, if Employee is terminated by the Company and then subsequently recovers from the disability, Employee will be free to compete in any way whatsoever, directly or indirectly, in any business that is competitive with the Company, and may solicit or in any other manner work for or assist any business which is competitive to the Company.

2.15.6 Severance Pay. If Employee elects to receive the severance pay provided for in subparagraph 2.15.2 or 2.15.4, whichever is applicable, and that severance pay together with all other payments required by this Agreement are paid to Employee in accordance with subparagraph 2.15.7, Employee agrees that for a period of one year following the termination of employment of the Employee, Employee will not engage in any way whatsoever, directly or indirectly, in any business that is competitive with the Company and its subsidiaries and affiliates utilizing any Confidential Information acquired while organizing, founding, or acting as an officer, director or employee of the Company, its subsidiaries or affiliates, nor solicit customers, investors, service providers, or strategic partners of the Company, or any of its subsidiaries or operating affiliates; or disrupt, damage, impair or interfere with the Company's, or its subsidiary's or affiliates' business whether by interfering with or raiding their employees, or disrupting or interfering with their relationships with customers, investors, service providers or strategic partners.

If Employee elects not to receive such severance pay, Employee will be free to compete in any way whatsoever, directly or indirectly, in any business that is competitive with the Company, and may solicit or in any other manner work for or assist any business which is competitive to the Company.

2.15.7 Termination for any reason. In the event of termination for any reason, all pay due under this Agreement except for severance pay is payable by the Company on the last day of employment. Severance pay, when applicable, will be paid as follows: one-half on the last day of employment and the remaining payments in three equal monthly installments payable on the first of months four through six.

2.16 Future Agreement. This Agreement and the documents referred to herein contain the entire agreement of the parties relevant to the subject matter hereof, and it may be amended only by a written document signed by both Employee and Company.

2.17 Governing Law. The laws of California, without regard to conflicts of laws principles thereof, shall govern this agreement.

2.18 Binding Effect. This Agreement shall inure to the benefit of and be binding upon the heirs, successors and assigns of the parties hereto.

EMPLOYEE:

[Print Name]

RECLAMATION CONSULTING AND APPLICATIONS, INC.

By:

Its.


EX 10.3

DISTRIBUTORSHIP AGREEMENT

THIS AGREEMENT (Agreement) is entered into this 30th day of July 2003, by and between Reclamation Consulting and Applications Inc., a company organized under the laws of Colorado with its principal place of business at 23832 Rockfield Blvd., Suite 273, Lake Forest, California 92630, USA and its manufacturing and sales training site at 3558 West 900 South, Salt Lake City, Utah, 84104 USA
('RCAI')

and

North American Marketing, Inc., a company organized under the laws of Nevada, and having its principal place of business at 1225 Wakeham Avenue, Santa Ana, CA 92705 ('Distributor')

RECITALS

RCAI manufactures and distributes certain asphalt, cement and related product release agents, which are used in the construction and similar industries and which are sold under the RCAI trademarks 'Alderox' and/or 'ASA-12'.

RCAI desires to appoint Distributor to promote, market, sell, distribute and service RCAI's products and Distributor desires to promote, market, sell, distribute and provide customer service for RCAI products in the territory, defined herein below.

In consideration of the mutual representations, agreements and conditions contained in this Agreement, RCAI and Distributor hereby agree as follows:

SECTION 1: DEFINITIONS

1.1 'Products' means asphalt, cement and related product release agents, in liquid form that RCAI formulates and manufactures. RCAI authorizes Distributor to distribute these Products under the RCAI Trademarks.

1.2 'Territory' means the entire geographic contiguous area of the United States plus Alaska and Hawaii. The Territory will be broken into 4-5 sub- Territories, each with its own minimum required sales volumes all as set forth on Schedule A hereto.

1.3 'Effective Date' means the date first written above which will be concurrent with the date when an authorized representative of the last party hereto executes this Agreement.

1.4 'Agreement Year' means any partial or whole calendar year, commencing with the Effective Date hereof, or any such subsequent period during the continuance of this Agreement.

1.5 'Trademarks' means all trademarks, trade names, designs, logos or other protected or protectable commercial symbols used by RCAI to identify RCAI as the source of the Products to which RCAI grants Distributor the right of distribution hereunder and as set forth in Schedule A hereto.

1.6 'Documentation' means any promotional, advertising, technical or training materials developed and furnished by RCAI to Distributor hereunder, specifically intended for the public, including customers and potential customers and concerning the promotion, distribution, application or handling of the Products. 1.7 'Distributor' means North American Marketing, Inc., and any sub-distributor or subcontractor, agent, representative, successor or assign to whom any of the rights or obligations of Distributor herein are assigned or delegated upon the prior written consent of RCAI.

SECTION 2: GRANT OF DISTRIBUTORSHIP

2.1 As of the Effective Date of this Agreement and for the term hereof, RCAI hereby appoints Distributor and Distributor hereby accepts the appointment to promote, distribute and provide customer service for the Products in the Territory under the terms and conditions of this Agreement.

2.2 The exclusive right granted herein will apply provided Distributor achieves the Minimum Sales Objectives in the Territories for each Agreement Year during the term hereof as further described below.

2.3 During the term hereof, Distributor will refrain from directly promoting, distributing or servicing the Products outside the Territory by soliciting orders, establishing or operating any branch or facilities for said purposes outside the Territory, or taking any other direct action to obtain customer orders outside of the Territory.

2.4 During the term RCAI shall appoint no other sales agents to distribute the Products within the territory provided minimum sales objectives are achieved as set out below. RCAI will use reasonable efforts to refer to Distributor any customer inquiry or order originating from Distributor's Territory. However, RCAI may directly sell, distribute or service the Products in the Territory during the term for its own account, and shall not be obligated to compensate Distributor for any such sales and activities.

2.5 The rights of Distributor to promote, distribute or provide customer service for the Products include the right of sub-distribution or subcontract, but only upon the prior written consent of RCAI. All other rights not expressly granted in this Agreement to Distributor are reserved to RCAI.

SECTION 3: AUTHORIZED USE OF TRADEMARKS

3.1 As of the Effective Date of this Agreement and for the term hereof, RCAI hereby grants Distributor the nonexclusive, nontransferable right to use the Trademarks set forth in Schedule B hereto in connection with the promotion, distribution and servicing of the Products in the Territory. RCAI may amend Schedule B from time to time.

3.2 Distributor will comply with all RCAI requirements for affixing or using the Trademarks on or in connection with the Products.

3.3 During the term hereof, Distributor will represent to customers and other third parties that Distributor is an authorized independent distributor of RCAI and the Products for the Territories. Distributor will refrain from using any trademarks or other identifying symbols that may be considered by customers or other third parties to be misleading as to the identity of Distributor, the relationship of RCAI and Distributor, or the origin or nature of the Products.

SECTION 4: MINIMUM SALES OBJECTIVE

4.1 Set out on Exhibit A hereto are minimum volume of sales of the Products that Distributor commits to use its best efforts to achieve for each of the Territories on a quarterly basis in the first Agreement Year. RCAI will review the minimum quarterly volume of sales of the Products prior to the beginning of any successive term during which this Agreement may continue and RCAI may change and adjust such minimums as it, in its sole judgment, sees fit.

4.2 Distributor will use its best efforts to achieve the Minimum Sales Objective in any given Agreement Year. In particular, Distributor will:

a) actively promote, distribute and service the Products in the Territories;

b) diligently pursue sales leads provided by RCAI;

c) initiate sales programs, campaigns, surveys, promotions and advertising programs;

d) comply with all provisions of Sections 8 and 9 hereof on training and advertising; and

e) respond promptly and fully to any of RCAI's requests for information on customers or market conditions in Distributor's Territories.

f) assist RCAI, when requested, in the development and testing of new products developed by RCAI

4.3 In the event that Distributor fails to achieve the Minimum Sales Objective in one or more of the Territories in any quarterly period, RCAI may, in its sole discretion, revise the Minimum Sales Objective for the subject Territory or Territories, and/or revoke the exclusive appointment granted herein in the subject Territory or Territories with immediate effect and appoint other distributors in the Territory or Territories, and/or terminate this Agreement in full, or as to such territory, immediately upon 20 days written notice to Distributor.

SECTION 5: INVOICING, PURCHASE ORDERS & PAYMENT

5.1 Distributor will invoice customers on RCAI letterhead and payment shall be made directly from the customer to RCAI.

5.2 Invoices to customers shall be payable net 30 days from date of invoice and shall offer a 3% discount for payment received net 10 days.

5.3 Once payments are received from customers and funds have cleared, within 30 days thereafter RCAI will issue checks to Distributor, for the difference between their current wholesale Product price and the net amount received.

5.4 Distributor will not be paid against payments received for product and equipment that was in stock with RCAI at the time of this agreement (as per inventory list of July 15, 2003).

SECTION 6: TERMS OF SALE

6.1 Unless otherwise agreed by RCAI, RCAI will deliver all Products for which it accepts purchase orders FOB RCAI's manufacturing plant Salt Lake City, Utah, or alternate pick-up site, Incoterms 2000, at which time and place title to the Products and risk of loss of the Products will pass to Distributor.

6.2 After loading by RCAI at its designated facility, Distributor is responsible for all costs and risks of transportation, insurance, any import duties or other charges, sales, use or other taxes, and licenses or approvals required for the transport, import, promotion, distribution and sale of the Products in the Territory, and any loss or damage sustained from the point RCAI's facility.

SECTION 7: TERMS OF PAYMENT

7.1 Payments made to Distributor from RCAI will reflect the difference between the prices set forth on RCAI's wholesale Price List for the Products, attached hereto as Schedule C, and as changed by RCAI from time to time, and the net proceeds received.

7.2 RCAI may change the pricing for products on the Product/Price List of Schedule C at any time, and, from time to time, any changes to said prices to be effective upon thirty (30) days written notice by RCAI to Distributor.

7.3 Unless otherwise agreed, invoices will require customers to make payment of the full invoice amount to RCAI, excluding any bank transfer or other charges, in US dollars, transfer orders to be made payable to RCAI and to any bank account as RCAI may designate from time to time.

7.5 RCAI reserves the right to request special terms of payment from certain customers on an individual basis, as RCAI determines in its sole discretion.

7.6 If it is necessary to convert any amount paid or payable to US dollars from any other currency, the conversion will be made at the rate of exchange actually used by RCAI's bank or other institution, and less all charges and fees for conversion.

SECTION 8: QUALITY CONTROL, SAFETY STANDARDS

8.1 Distributor will:

a) employ and maintain sufficient personnel to perform the obligations of Distributor herein and ensure their adequate training in accordance with this Agreement;

b) provide customers with adequate information and training on the safe and effective handling of the Product(s) and their applications;

c) furnish all market development information reasonably requested by RCAI concerning the customers of Products sold by Distributor; and

d) notify RCAI by phone, confirming in writing or confirming by e-mail, as promptly as practicable after it comes to Distributor's attention, of any customer complaints regarding the Products.

e) advertise and publicize the Products in the Territory in accordance with any RCAI advertising and promotional guidelines set forth in any Documentation or other materials, or as provided during any sales training or market development assistance by RCAI, and spend a minimum of at least $_______ per quarter on advertising for the Products.

SECTION 9: LIMITED WARRANTIES FOR PRODUCTS

9.1 RCAI hereby warrants with respect to all Products delivered to Distributor pursuant to the terms and conditions hereof that all such Products will be suitable for the applications intended, provided they are used as is intended from the date of delivery to Distributor until one (1) year from the pick-up date.

9.2 RCAI's entire liability and Distributor's customers' exclusive remedy is limited to the replacement without charge, of any Products which prove not to function as intended within the warranty period.

9.3 RCAI will not be liable for the replacement of Products which, in RCAI's sole opinion, have been subjected to misuse, accident, alteration, neglect or damage.

9.4 The warranties provided herein are the only warranties made by RCAI and excludes all other express and implied warranties including those of merchantability and fitness of the Products for a particular purpose.

9.5 IN NO EVENT WILL RCAI BE LIABLE FOR DAMAGES OF ANY KIND, DIRECT OR INDIRECT, INCLUDING, WITHOUT LIMITATION, GENERAL AND SPECIAL DAMAGES SUFFERED BY DISTRIBUTOR OR ANY CUSTOMER OR DISTRIBUTOR ARISING FROM BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE OR OTHER TORT, EQUITY, OR ANY OTHER LEGAL GROUND OF ACTION.

SECTION 10: DISTRIBUTOR'S LIABILITY

10.1 Distributor will limit its representations on warranty with regard to the Products to correspond to the provisions of this Agreement.

10.2 Distributor will obtain as of the Effective Date of this Agreement and maintain for the term hereof general liability coverage which includes specifically the Products and completed operations coverage of at least $1,000,000 per incident, property of at least $1,000,000 and such additional insurance as may be required by the law or laws of the Territory, and which names RCAI as an additional insured.

10.3 Within ten (10) days of the Effective Date, Distributor will provide RCAI with a copy of the insurance policy evidencing compliance with Section 12.2 and will refrain from canceling or changing said policy, except to increase Distributor's coverage, without prior written notice of RCAI.

SECTION 11: PROPRIETARY RIGHTS

11.1 Distributor on behalf of itself, its officers, employees, agents, representatives, and assigns:

a) acknowledges that RCAI is the owner of all proprietary rights in the Products and the Trademarks, to which RCAI grants Distributor the rights to distribute and use pursuant to the provisions of this Agreement; and

b) will refrain from any unauthorized or infringing use of the Products, Trademarks or any Documentation for the term hereof and thereafter.

11.2 Promptly after Distributor learns of any suspected or actual unauthorized third party use of the Products, Trademarks or Documentation, Distributor will notify RCAI of said unauthorized use or disclosure.

11.3 Should RCAI decide in its sole discretion to take any action to defend against or terminate said infringing or unauthorized use of its proprietary rights in the Distributor's Territory, Distributor will, upon RCAI's request, render any assistance RCAI may require, at RCAI's expense.

SECTION 12: TERM AND TERMINATION

12.1 This Agreement will commence on the Effective Date hereof and will continue for an initial term of one (1) year (Initial Term). This Agreement may be renewed at RCAI's sole option for one or more successive terms of 1 year each (Successive Term) by 90 days prior written notice by RCAI to Distributor. At the time of renewal Distributor will:

a) have complied with its best efforts obligation to achieve the Minimum Sales Objective for the Agreement Year concerned; and

b) have complied with all other obligations of this Agreement to RCAI's satisfaction.

12.2 This Agreement may be terminated without cause by either party hereto if the party wishing to terminate gives prior written notice to the other party at least 90 days prior to the end of the Initial Term or any Successive Term.

12.3 RCAI may terminate this Agreement at any time during the Initial Term or any Successive Term by giving written notice to Distributor, notice effective upon the date given, in the event of any one or more of the following:

a) the failure of Distributor to achieve the Minimum quarterly Sales Objective required hereunder, provided, however, that RCAI may elect in lieu of termination, to revise the Minimum Sales Objective, appoint other distributors in the Territory or take any other measures to ensure that the market in Distributor's Territory is optimally developed;

b) Distributor's default in payment when due of any amount payable hereunder, provided however, in lieu of or in addition to termination, RCAI may take any measures to mitigate or reduce the extent of Distributor's default.

c) Distributor's breach of any obligation concerning RCAI's proprietary rights;

d) Distributor's breach of any obligation or representation, other than those of paragraphs a), b) and c) above,

e) Distributor's attempted assignment of this Agreement or any of rights granted hereunder by Distributor by agreement or operation of law, without the prior written consent of RCAI;

f) any legal or business transaction or event which causes a change in majority ownership of Distributor and effectively results in an assignment of this Agreement to owners substantially different from the owners of Distributor at the time of execution of this Agreement without the prior written consent of RCAI; and

g) any insolvency or inability of Distributor to pay debts as and when due, or the initiation or tendency of any proceeding involving the insolvency, bankruptcy, reorganization, or liquidation of Distributor.

SECTION 13: EFFECTS OF TERMINATION

13.1 Subject to Section 15.6, upon termination, Distributor will immediately discontinue the promotion, distribution and servicing of the Products and will cease to represent itself as an authorized Distributor of RCAI.

13.2 Distributor will further discontinue any use of RCAI's Trademarks and any Documentation. At RCAI's option, Distributor will certify destruction of Documentation.

13.3 Distributor will refrain from using any name, mark or logo which may create a likelihood of confusion with RCAI's Trademarks and will further refrain from copying in whole or in part any of the Confidential Information or Documentation.

13.4 Unless termination occurs for cause, Distributor may sell any Products remaining as of the date of termination, provided it does so within 30 days of the date of termination. All other Products remaining thereafter must be disposed of by Distributor and certified to RCAI.

13.5 Nothing herein will relieve or extinguish any of Distributor's payment obligations under any provision of this Agreement. Nevertheless, in the event of insolvency or refusal to pay for any reason by Distributor, RCAI may take reasonable actions to mitigate its losses by sale of the Products ordered to other distributors or customers.

13.6 Distributor will offer to RCAI and RCAI may at its sole option, elect to assume the rights and obligations of any agreements between Distributor and its customers for the service of the Products, effective as of the date of termination or expiration.

13.7 In no event will termination or expiration with or without cause of this Agreement entitle Distributor to any compensation by RCAI on any grounds whatsoever.

SECTION 14: GOVERNING LAW, ARBITRATION, ATTORNEY'S FEES

14.1 Governing Law. This Agreement together with the Schedules hereto and any valid agreement subsequently entered into between the parties regarding the subject matter hereof will be governed and construed in accordance with the laws of California.

14.2 Dispute Resolution. In the event of any controversy or claim arising out of or relating to this Agreement, the parties agree to try in good faith to settle the claim by mediation administered by the American Arbitration Association ('AAA') under its International Commercial Mediation Rules before resorting to arbitration. Any controversy or claim that cannot be resolved by mediation will be settled by arbitration administered by the AAA in accordance with its International Arbitration Rules. To the extent these rules require supplementation and do not contradict the aforesaid Rules, the arbitral tribunal will apply the California rules on Arbitration and Conciliation of International Commercial Disputes. Unless otherwise agreed, the place of arbitration will be Los Angeles, California. Judgment on the award rendered by the arbitrator will be final and may be entered in any court having jurisdiction thereof.

14.3 In the event of unauthorized use or disclosure of the Products, Trademarks, or Documentation, Distributor acknowledges that RCAI will be irreparably harmed and, as there is no adequate remedy at law, RCAI may seek and obtain injunctive relief against Distributor for any harm arising from or relating to said unauthorized use or disclosure. Moreover, should the interim measures for injunctive relief under the AAA International Arbitration Rules prove inadequate, RCAI may seek injunctive relief, specific performance or any other equitable relief from any competent court having jurisdiction.

14.4 The award of the arbitrator will be final and binding on the parties, provided said award does not contradict in whole or in part the state of the governing law hereof. Judgment upon the award rendered may be entered in any court having jurisdiction or application may be made to such court for a judicial acceptance of the award and an order of enforcement.

14.5 Attorney's Fees. In the event an action or arbitral proceeding is instituted relating to this Agreement, the party which the arbitrator or court of competent jurisdiction shall deem to have substantially prevailed therein shall be entitled to recover all costs, expenses, and attorney's fees adjudged by such arbitral tribunal or court.

SECTION 15: GENERAL PROVISIONS

15.1 Relationship of the Parties. Nothing in this Agreement will be construed as creating a partnership or joint venture between the parties or making Distributor a shareholder, agent, employee or other representative of RCAI, but in all of its operations hereunder Distributor will be an independent contractor, conduct its business at its own cost and expense and make no representation, express or implied, that it is an employee, partner, shareholder, joint venturer or other representative of RCAI. Distributor will have no authority to make any representation or warranty on behalf of RCAI, except as specified in this Agreement.

15.2 Force Majeure. In the event that either party is rendered wholly or partially unable to carry out its obligations under this Agreement due to reasons beyond its control (including, without limitation, acts of God, industrial disputes, war or civil disturbances, fire, floods, storms, earthquakes, landslides, acts of any governmental authority or agency, embargoes or unavailability of equipment or transport), the failure to so perform will be excused and not constitute default hereunder during the continuation of the intervention of such force majeure. The party affected shall give prompt notice to the other party, shall take all reasonable steps to eliminate the intervening event and shall resume performance as promptly as is practicable.

15.3 Assignment. This Agreement will be binding upon and inure to the benefit of RCAI, its successors and assigns. This Agreement will not be assignable or transferable by Distributor unless prior written consent is obtained from RCAI and provided that the assignee or transferee agrees in writing to be bound by all the terms, condition and obligations of this Agreement by which Distributor is bound and Distributor remains subject to the obligations on confidentiality and proprietary rights set forth herein. Any assignment of this Agreement or any rights or obligations arising therefrom without RCAI's prior written consent shall be deemed void.

15.4 Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court or other tribunal of competent jurisdiction, this Agreement will be considered divisible as to such provision and the remaining provisions hereof will remain valid and binding.

15.5 No Waiver. Failure or delay by either party to exercise or enforce any term, right, power or privilege of this Agreement will not operate as a waiver thereof nor will any single or partial exercise of any term, right, power or privilege preclude any other or further exercise thereof.

15.6 Entire Agreement. This Agreement, and all schedules hereto form the entire agreement of the parties hereto with respect to the subject matter hereof. No modification, renewal, extension or waiver of this Agreement or any of its provisions will be binding unless made in writing and signed by each party=s duly authorized representative, except as to the Schedules attached hereto, which RCAI may amend from time to time during the term hereof.

15.7 Survival. Neither termination nor expiration will affect any right or obligation of either party hereunder which by its terms continues beyond the effective date of termination or expiration.

15.8 Notices. Unless otherwise provided herein, any notice or other written communication required or permitted in connection with this Agreement will be properly given when made in writing and sent by first-class registered or certified airmail, return receipt requested, or by courier or other personal delivery service, and properly addressed to the appropriate party at the address set forth above, until changed by written notice. Notice shall be effective when given, provided it is given in accordance with this Section 15.8.

IN WITNESS WHEREOF, RCAI and Distributor has each caused this Agreement to be executed on its behalf by its duly authorized officer as of the date first written above.

RCAI                                       North American Marketing, Inc.


By:__________________________           By:_____________________________
Gordon Davies                                   George Aumond
President                                       President


EX 10.4

MANUFACTURING AGREEMENT

This Agreement is made this 14th day of October, 2003, between Reclamation Consulting & Applications, Inc. (RCAI), a Colorado corporation with its principal place of business at 23832 Rockfield Blvd. Suite 272, Lake Forest, California, 92630, and North American Systems, Inc., a Nevada corporation (NAS).

RECITALS

RCAI is the owner of certain proprietary technology used in the production of asphalt, cement and related products release agents in liquid form that are non- toxic, non-explosive and environmentally compatible. To date, RCAI has produced and sold its own such liquid release agents, in particular under the trademarks and names ASA 12, KR7, and Alderox.

Pursuant to a separate non-disclosure agreement between RCAI and NAS dated July 30th, RCAI disclosed its technology to NAS for the purpose, among others, of NAS's evaluation of its capacity and capability to produce the Alderox products and related applications on behalf of RCAI.

As a consequence, the parties have determined that NAS has the manufacturing capability to produce Alderox products for RCAI. RCAI desires to license its technology to NAS for the purpose of NAS manufacturing RCAI's requirements for Alderox products and related applications, and NAS desires to obtain a license to use RCAI's technology to manufacture and sell the Alderox products to RCAI.

In consideration of the premises, representations and agreements contained in this Agreement, the parties agree as follows:

Section 1. Definitions

1.1. "Alderox Products" means RCAI's asphalt, cement and related product release agents in liquid form and any applications, the primary characteristics of which are that they are non-toxic, non-explosive and environmentally compatible, or related services.

1.2 "Alderox Technology" means all information acquired or developed by RCAI relating to Alderox Products, including their formulation, ingredients, processing or other methods of production, all of which is owned by RCAI and currently protected as trade secrets.

1.3 "Alderox Improvements" means any improvements to the Alderox Products or Technology acquired or developed by RCAI during the term of this Agreement relating to current or future Alderox Products.

1.4 "Confidential Information" means

a) all information in any tangible form or medium which RCAI has disclosed under the NDA to NAS or which it will disclose hereunder relating to Alderox Products, Alderox Technology, or Alderox Improvements;

b) production data, technical and engineering data, test data and test results, or the status and details of research and development of Alderox Technology, Improvements or Alderox Products;

c) any other information in any tangible form which is disclosed by RCAI to Alderox during the term hereof which is reasonably necessary to enable NAS to carry out its performance of this Agreement and which is marked by RCAI as confidential, including without limitation, information relating to business operations or development, marketing, customer or supplier information or regulatory approvals or compliance.

1.5 "Licensed Technology" means all Alderox Technology and any Alderox Improvements, which are licensed to NAS hereunder.

1.6 "Effective Date" means the date first written above, subsequent to the execution of this Agreement by an authorized representative of each party hereto.

Section 2. License to Manufacture

2.1 During the term hereof, RCAI grants to NAS the rights to use and practice the Licensed Technology for the sole purpose of manufacturing Alderox Products in the types and quantities ordered by RCAI in accordance with RCAI's requirements. Provided that NAS continues to produce and deliver RCAI's requirements for Alderox Products, and further provided that there is agreement on price under Section 4 hereof, RCAI will purchase its requirements from NAS.

2.2 Unless otherwise agreed by amendment hereto, RCAI retains all rights to market, distribute and sell the Alderox Products worldwide and all rights of ownership and use to the Licensed Technology not otherwise granted herein to NAS.

Section 3. Disclosure of Licensed Technology and Manufacture of Product

3.1 Promptly following the Effective Date hereof, RCAI will disclose to NAS all the Licensed Technology in its possession and in any tangible form or medium in which it exists.

3.2 Upon receipt of the Licensed Technology, NAS will use its best efforts produce a sample(s) of the Alderox Products which RCAI orders. Upon approval by RCAI, NAS will commence production of the Alderox Products ordered.

3.3 NAS will not pay any license fees for the use of the Licensed Technology. However, NAS will assume all direct costs of manufacturing which are necessary to produce the Alderox Products ordered by RCAI, including any costs in connection with testing or regulatory approvals that are pre-requisite to NAS's production of the Alderox Products.

3.4 During the term hereof, RCAI will provide at its own cost technical assistance to NAS to the extent reasonably necessary and required by NAS to use the Licensed Technology to its fullest extent.

Section 4. Purchase of RCAI's Requirements

4. 1 NAS will supply the Alderox Products only to RCAI.

4.2 During the term hereof, NAS agrees to refrain from developing, manufacturing or distributing any product, which directly or indirectly competes with any Alderox Products or is based in whole or in part on the Licensed Technology.

Section 5. Shipment, Inventory, and Inspection

5.1 Unless otherwise agreed, all Alderox Products will be manufactured and delivered F.O.B. NAS's Salt Lake City, Utah facility or other blending facilities. NAS will bear the costs of shipment, insurance, taxes, and any other such charges from the time RCAI delivers the Alderox Products to the designated NAS facility.

5.2 During the term hereof, RCAI may inspect NAS's facilities and operations, upon reasonable notice and at reasonable intervals, for the purposes of determining if the Licensed Technology is being used and practiced as intended. Costs of any inspection will be born by RCAI and NAS will fully cooperate with RCAI during any such inspection.

Section 6. Purchase orders and terms of Payment

6.1 RCAI will submit to NAS its purchase orders for Alderox Products within 30 days of the desired delivery date. Within 48 hours of NAS's receipt of RCAI's purchase order, NAS will provide RCAI with its pricing and estimated delivery date for the Alderox Products ordered.

6.2. Payment of NAS's invoices for Alderox Products ordered by and delivered to RCAI will be due and payable net thirty (30) days of delivery of the ordered Products to RCAI, F.O.B. final delivery destination. Unless otherwise agreed, all prices will be paid in US Dollars.

6.3. NAS may make adjustments to its prices during the term hereof; however, any increases in pricing will require ninety (90) days' prior notice to RCAI of any such change before making them effective, and any such changes will not adversely affect the orders for Alderox Products already accepted by NAS for production.

6.4 In the event of late payment, RCAI will notify NAS of the reasons for late payment and the timeframe, if any, for making payment. RCAI will use its best efforts to make full payment or otherwise resolve the issue. Late payment will not constitute good cause to terminate this Agreement.

Section 7. Other Obligations of NAS

NAS, as provided for herein, will use its best efforts to:

7.1 ensure the confidentiality of all of Licensed Technology and Confidential Information disclosed hereunder and the proper use of all Licensed Technology;

7.2 obtain all regulatory approvals or comply with all regulatory requirements required or desirable to produce the ASA 12 Products.

Section 8. Proprietary Rights/Confidentiality

8.1 NAS will refrain from any unauthorized use of the Licensed Technology or disclosure of said Technology protected as trade secrets to any third parties.

8.2 The above obligations will apply retroactively to any part of the Licensed Technology disclosed by RCAI to NAS prior to execution hereof. They will continue for the duration of this Agreement and thereafter, unless and until any part of the Licensed Technology or the Confidential Information are proven: a) to have fallen into the public domain or do not remain secret and substantial through no fault of the receiving party; b) to have infringed the proprietary rights of a third party; or c) to have been independently developed by NAS prior to RCAI's disclosure.

8. 3 NAS agrees to use at least the same standard of care as it uses in regard to its own confidential or proprietary information to prevent unauthorized use or disclosure of the Licensed Technology or the Confidential Information, including, without limitation, actively educating their employees, agents, consultants or other representatives about the confidential treatment of said information and instituting both contractual and practical measures to ensure that they refrain from such unauthorized use or disclosure during the term of their employment or service and thereafter.

Section 9. Third Party Infringement/Misuse

9.1 Upon: a) the discovery by NAS; or b) notice by NAS to RCAI: i) any third party infringement of the Licensed Technology; or ii) any third party claim that the Licensed Technology infringes such party's proprietary rights, RCAI will take whatever action is reasonably necessary at RCAI's expense to prevent or prosecute said alleged infringement or defend against, negotiate, mediate or otherwise resolve said third party's claim.

9.2 NAS will render any assistance reasonably requested or required by RCAI, provided the expense is born by RCAI. RCAI will retain any damages or other compensation recovered from the prosecution, settlement or defense of such claims.

9.3 Notwithstanding Section 9.2, in the event that the costs of litigation become overly burdensome, RCAI will not be obligated to litigate or to continue to litigate a third party infringement claim and will notify NAS in a timely manner of any decision not to prosecute or defend on its own. The parties may agree to jointly prosecute or defend such claims, in which case, they will jointly assume the expenses and fees incurred and share any damages or other compensation which may be recovered from prosecution, defense or settlement. Should RCAI not wish to participate in any joint prosecution or defense, the parties may, by subsequent agreement, determine whether and to what extent NAS may, at its election, prosecute or defend such claims.

9.4 In any event, RCAI or both parties, to the extent both are involved, will use its or their best efforts to: a) modify the Licensed Technology or amend this Agreement so as to fulfill the objectives hereof; and b) mitigate any actual or potential damage to the Alderox Products which RCAI has ordered and NAS has in production or ready for delivery.

Section 10. Warranties/Indemnities

10.1 RCAI represents, that to its best knowledge: a) the Licensed Technology does not infringe any third party's rights; and b) the Licensed Technology, when properly used, will result in Alderox Products which have the function and reliability they are intended to have. 10.2 NAS warrants to RCAI that it will use its best efforts to: a) use the Licensed Technology so as to produce all Alderox Products ordered with the function and reliability intended; and b) deliver to RCAI all Alderox Products free of any and all material defects in materials and workmanship.

10.3 The parties will give each other prompt notice of any alleged material breach of these warranties. RCAI will take all reasonable measures to correct any deficiencies in the Licensed Technology and will bear the expense of any Alderox Products which are ordered and produced which contain such deficiencies. Should the defects relate to the materials or workmanship, NAS will replace said defective products at no charge. The parties' warranties will apply to third party buyers or consumers as prescribed by the local laws of the territory in which the Alderox Products are sold or used. In the absence of any statutory or prescribed period, the applicable warranties will be for a period of 1 year from the time the Alderox Products concerned are sold.

10.4 RCAI agrees to determine to what extent its product liability insurance will cover third party claims and to otherwise procure comprehensive product liability insurance sufficient to protect NAS from the claims of such third party claimants for the U.S. market.

Section 11. Limitation of Liability

11.1 RCAI will have no responsibility for the workmanship or materials of the Alderox Products manufactured by NAS or for compliance with the information furnished to NAS in the Licensed Technology or related Confidential Information. NAS will be liable, at its own cost, to correct or cure any such defects in materials and workmanship, which occur under normal use or application from the date of discovery of the defect and prompt notice to NAS to the end of any applicable warranty period.

11.2 NAS will have no responsibility for any deficiencies in the information provided in the Licensed Technology. RCAI will be liable, at its own cost, to correct or cure any such deficiencies, so that the Alderox Products have the function, and reliability they are intended to have under normal use or application from the date of discovery of the defect and prompt notice thereof to RCAI to the end of any applicable warranty period.

11.3 NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL DAMAGES TO EACH OTHER ARISING FROM THE BREACH HEREOF PROVIDED EACH ONE'S OBLIGATIONS HEREIN ARE MET.

11.4 As between each other, the foregoing warranties are in lieu of all other warranties or conditions, express or implied. Except as provided herein, neither party will be liable for any damages other than actual damages, such actual damages not to exceed the total price paid for the total amount of Alderox Products ordered with regard to which a claim of liability is made.

Section 12. Term and Termination

12.1 This Agreement will commence on the Effective Date and continue for a period of twelve full consecutive calendar months or part thereof, beginning with the month in which the Effective Date occurs ("Annual Period"). It will be automatically renewed for consecutive Annual Periods, unless terminated upon notice by either party for good cause.

12.2 This Agreement may be terminated at any time for good cause by notice of the party claiming breach to the allegedly breaching party. Good cause means:

a) a material breach of any warranty, term, condition or covenant of this Agreement, unless the breaching party cures the breach to the notifying party's satisfaction within ninety (90) days of the allegedly breaching party's receipt of the notice; or

b) a material adverse change in the Licensed Technology, because of misappropriation which is unsuccessfully defended or for any other reason, so that the production and/or sale of the Alderox Products are no longer economically viable;

c) an event of insolvency of either of the parties, including a failure to pay debts or perform obligations, admission of and/or commencement of any voluntary or involuntary insolvency proceeding, or an assignment for the benefit of creditors.

12.3 RCAI reserves the right to terminate the rights of NAS hereunder during in the event that NAS is unable or unwilling for any reason to meet RCAI's requirements for Alderox Products, and such incapacity or decision not to produce and supply by RCAI continues for a period of thirty (30) days from the date of NAS's notice to terminate under this Section 12.3.

Section 13. Effects of Termination

13.1 Upon termination for any reason, NAS will cease and desist to use any of RCAI's Licensed Technology or Confidential Information. At RCAI's election, NAS will return or certify destruction of all such information in any form or medium in which it is embodied, together with any copies.

13.2 RCAI will pay any amounts then due and owing to NAS for orders of Alderox Products which have been ordered by RCAI in accordance with the terms hereof.

13.3. Notwithstanding Section 13.1 and unless termination results from misuse of the Licensed Technology or Confidential Information, NAS will complete any orders of Alderox Products which are in progress using said Licensed Technology, and thereafter return or certify their destruction.

13.4 Notwithstanding Section 13.1:

a) should RCAI terminate the production rights of NAS or should NAS decide for any reason to cease production of the Alderox Products, RCAI may resume production or grant a license to another third party to meet its requirements; or

b) should RCAI for any reason, including an event of insolvency as defined in
Section 12.2. b), end its business of promoting, selling, marketing or otherwise distributing the Alderox Products, RCAI will first offer to NAS a license of all rights to use the Licensed Technology and to produce and sell the Alderox Products. Should NAS wish to obtain said rights, RCAI will grant said license, subject to the parties' mutual agreement on the terms and conditions of said license.

13. 5 In the event either party should decide not to continue its performance as set forth in Section 13.4 hereof, neither party will be liable for any claims of damage from the other party, provided the proper notice period is observed and further provided each party takes reasonable measures as provided in Section 13.4 to license or otherwise enable the party which wishes to continue production and/or sale of the Alderox Products with the rights to so continue.

13.6 All other obligations of this Agreement which by their terms survive termination hereof will continue to remain in effect.

Section 14. Governing Law and Dispute Resolution

14.1 This Agreement will be construed in accordance with, and governed by the laws of the state of California, without regard to its conflicts of laws rules.

14.2 In the event of any dispute arising out of or relating to this Agreement, the parties agree to try in good faith to settle the dispute by mediation administered by the American Arbitration Association ("AAA") under its Commercial Mediation Rules before resorting to arbitration. Any controversy or claim arising out of or relating to this Agreement which cannot be settled through mediation will be settled by arbitration administered by the AAA in accordance with its Arbitration Rules. Judgment on the award rendered by the arbitrator shall be final and may be entered in any court having jurisdiction thereof.

14.3 In the event the interim measures for injunctive relief under the AAA International Arbitration Rules prove inadequate, the parties may seek injunctive relief, specific performance or any other equitable relief from any competent court having jurisdiction.

Section 15. General Provisions

15.1 Force Majeure. Unless otherwise provided for herein, no party will be liable for any failure or delay in its performance under this Agreement due to causes, including, but not limited to, acts of God, such as fire, flood or earthquake, acts of civil or military authority, riots, wars, governmental actions, labor shortage or disputes or other acts which are beyond any of the party's reasonable control, provided the party with the delay or failure gives notice to the other party at least within 7 days of its discovery and uses reasonable efforts to minimize or remedy such failure or delay in performance.

15.2 Relationship of Parties. RCAI and NAS are neither agents nor employees of each other, nor joint venturers. Neither has the authority to bind the other by contract or otherwise to any obligation, other than as expressly stated herein.

15.3 Notices. Any notices under this Agreement must be in writing and may be given by certified mail, courier, facsimile or email. In the case of facsimile or email, confirmation must be given promptly thereafter by certified mail or courier. Notices will be sent to each one's respective address as follows, until otherwise notified of a change. Notices are effective upon receipt or receipt of confirmation.

Mr. Gordon Davies RCAI
NAS 23832 Rockfield Blvd. Suite 272 Lake Forest, CA. 92630 Fax:
Fax: Email:
Email:

With a copy to: With a copy to:

Shaub, Williams & Nunziato LLP 12121 Wilshire Blvd. #205 Los Angeles, CA. 90025 310 826 8042 lawfirm@swn-law.com

15.4 Assignment. Neither party may assign or delegate its rights or obligations under this Agreement, without the prior written consent of the other.

15.5 Entire Agreement. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. No amendments hereof will be binding unless executed in writing subsequently to this Agreement by each of the authorized representatives of the parties.

15.6 Waiver. Failure by either party to enforce any provision of this Agreement will not be deemed to constitute a waiver of future enforcement of that or any other provision, nor be binding unless executed in writing by the party making the waiver.

15.7 Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, all other provisions of this Agreement will be construed to remain fully valid, enforceable and binding on the parties.

15.8 Construction. This Agreement has been negotiated by the parties and their respective counsel. This Agreement will be fairly interpreted in accordance with its terms and without any strict construction in favor of or against either party.

15. 9 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be considered an original, but all of which together will constitute one and the same instrument. IN WITNESS WHEREOF, each of the parties hereto or its authorized representative has executed this Agreement as of the date first written above.

RECLAMATION CONSULTING & APPLICATIONS, INC.

By:____________________
Gordon Davies
President

NORTH AMERICAN SYSTEMS, INC.

By:______________________
Name:
Title:


EX 10.5

REVOLVING LOAN AGREEMENT

THIS REVOLVING LOAN AGREEMENT (the "Agreement") is entered into this 30th day of July, 2003 by and between North American Systems, Inc., a Nevada corporation ("NAS") and Reclamation Consulting and Applications Inc., a Colorado Corporation ("RCAI").

NOW THEREFORE, it is hereby agreed as follows:

1. Periodic Loans

During the term hereof, RCAI hereby agrees to make periodic loans to NAS. During the term hereof, from time to time NAS may notify RCAI of its need to borrow funds pursuant to this Agreement. Within 30 business days of receipt of such notice from NAS seeking to borrow funds and with the approval of RCAI's Board of Directors, RCAI shall forward such funds to NAS.

NAS shall utilize the funds as set forth in a monthly Budget, which will be submitted to RCAI and by this reference incorporated herein and for no other purpose, without the specific written authorization and consent from RCAI.

2. Period Finance Charges

All principal outstanding shall bear interest at a rate of 10% per annum, compounded annually.

3. Payments

All interest outstanding shall be due and payable by NAS on a quarterly basis, 30 days after the end of each calendar quarter. All interest then outstanding shall be due and payable by NAS to RCAI under the terms of each advance. NAS may, from time to time, in NAS's discretion, make one or more periodic payments to RCAI. Such payments shall be credited to NAS's account on the date that such payment is received and cleared by RCAI's bank. Such payments shall be applied first to the interest outstanding, and then to the principal outstanding.

4. Term

This Agreement shall begin this date and shall terminate on October 14th 2005, unless terminated earlier pursuant to the default provisions of this Agreement. This Agreement may be renewed on an annual basis after the termination date.

5. Default Provisions

The occurrence of one or more of the following events shall constitute and event of default:

5.1 The nonpayment of any interest of this loan when the same shall have become due and payable. There shall be a 90 day cure period following any Notice of Default.

5.2 The entry of a decree or order by a court having jurisdiction in the premises adjudging NAS a bankrupt or insolvency, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of NAS under the federal Bankruptcy Act or any other applicable federal or state law, or appointing a receiver, liquidator, assignee or trustee of NAS, or any substantial part if its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days.

5.3 The institution by NAS of proceedings to e adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under the federal Bankruptcy Act or any other applicable federal or state law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee or trustee of the company, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by NAS in furtherance of any such action.

5.4 Any default in the obligation of NAS for borrowed money, other than this loan, which shall continue for a period of sixty (60) days.

5.5 The breach by NAS, of any other provision of this Agreement, or the attached Security Agreement.

6. Acceleration

At the option of RCAI, and without demand or notice, all principal and any unpaid interest shall become immediately due and payable upon a default as set forth above.

7. Security

NAS's obligations as set forth in this Agreement are secured pursuant to the provisions of a Security Agreement between RCAI and NAS, a true copy of which is attached hereto and by this reference incorporated herein.

8. Notices

Any notice under this Agreement shall be in writing and shall be effective when actually delivered in person or three days after being deposited in the U.S. mail, registered or certified, postage prepaid and addressed to the party at the address stated in this Agreement or such other address as either party may designate by written notice to the other.

9. Address for Notices

Any notices permitted or required under this Agreement shall be deemed given upon the date of personal delivery or 48 hours after deposit in the United States mail, postage fully prepaid, return receipt requested, addressed to NAS at:

1520 South Grand Avenue Santa Ana, CA 92705

Addressed to RCAI at:

23832 Rockfield Blvd., Suite 275 Lake Forest, CA 92630

Or at any other address as any party may, from time to time, designate by notice given in compliance with this section.

10. Time

Time is of the essence of this Agreement

11. No Release

Both parties agree that the termination of this Agreement or the expiration of the term of this Agreement shall not release either party from any obligations hereunder.

12. Waiver

The waver by either party of the breach of any provision of his Agreement by the other party shall not operate or be construed as a waver of any subsequent breach.

13. Assignment

Except as otherwise provided within this Agreement, neither party hereto may transfer or assign this Agreement without prior written consent of the other party.

14. Law Governing

This Agreement shall be governed by and construed in accordance with the laws of the State of California.

15. Arbitration

If at any time during the term of this Agreement any dispute, difference, or disagreement shall arise upon or in respect of the Agreement, and the meaning and construction hereof, every such dispute, difference, and disagreement shall be referred to s a single arbiter agreed upon by the parties, or if no single arbiter can be agreed upon, an arbiter or arbiters shall be selected in accordance with the rules of the American Arbitration Association and such dispute, difference, or disagreement shall be settled by arbitration in accordance with the then prevailing commercial rules of the American Arbitration Association, and judgement upon the award rendered by the arbiter may be entered in any court having jurisdiction thereof.

16. Attorney Fees

In the event an arbitration, suit or action is brought by and any party under this Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that the prevailing party shall be entitled to reasonable attorneys fees to be fixed by the arbitrator, trial court, and/or appellate court.

17. Presumption

This Agreement or any section thereof shall not be construed against any party due to the fact that said Agreement or any section thereof was drafted by said party.

18. Computation of Time

In computing any period of time pursuant to this Agreement, the day of the act, event or default from which the designated period of time begins to run shall be included, unless it is a Saturday, Sunday or a legal holiday, in which event the period shall begin to run on the next day which is not a Saturday, Sunday or a legal holiday, in which event the period shall run until the end of the next day thereafter which is not a Saturday, Sunday or legal holiday.

19. Titles and Captions

All article, section and paragraph titles or captions contained in this Agreement are for convenience only and shall not be deemed part of the context nor affect the interpretation of this Agreement.

20. Pronouns and Plurals

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the Person or Persons may require.

21. Entire Agreement

This Agreement and the attached Security Agreement contain the entire understanding between and among the parties and supersedes any prior understandings and agreement among them respecting the subject matter of this Agreement.

22. Prior Agreements

This document is the entire, final and complete agreement of the parties pertaining to the loan of money by RCAI to NAS, and supersedes and replaces all prior or existing written and oral agreements between the parties or their representatives relating to such financing.

23. Agreement Binding

This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

24. Further Action

The parties hereto shall execute and deliver all documents, provide all information and take or forbear from all such action as may be necessary or appropriate to achieve the purposes of this Agreement.

25.0 Counterparts

This Agreement may be executed in several counterparts and all so executed shall constitute one Agreement, binding on all the parties hereto even though all the parties are not signatories to the original or the same counterpart.

26.0 Parties in Interest

Nothing herein shall be construed to be to the benefit of any third party, nor is it intended that any provision shall be for the benefit of any third party.

WHEREOF, the parties have executed this Agreement this 30th day of July, 2003.

Reclamation Consulting & Applications, Inc.

Title:

Date: July 30, 2003

North American Systems, Inc.

Title:

Date: July 30, 20


EX 10.6

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (the "Agreement") is made and entered into at Irvine, California, as of the 30th day of July 2003 by and between RECLAMATION CONSULTING AND APPLICATIONS, INC., a Colorado Corporation ("RCAI" or "Secured Party") and NORTH AMERICAN SYSTEMS, INC., a Nevada Corporation ("NAS" or "Debtor") with reference to the following facts:

A. Debtor has executed a Revolving Loan Agreement in favor of Secured Party to evidence an outstanding debt owed by Debtor to Secured Party, and delivered same to Secured Party, a copy of which is attached hereto (the "Loan Agreement").

B. The purpose of this Security Agreement is to secure the full, faithful and prompt payment by Debtor to Secured Party under the terms of the Loan Agreement.

NOW THEREFORE, it is hereby agreed as follows:

1. Grant of Security Interest

Debtor hereby grants a security interest to and in favor of Secured Party, and Secured Party retains a security interest in and to the Collateral (as hereinafter defined in Paragraph 2) to secure the full, faithful and prompt performance of the Loan Agreement. The security interest herein granted to, and retained by, Secured Party shall be a lien and, except as otherwise provided herein, shall attach to the Collateral immediately upon the execution hereof.

Debtor shall execute and deliver to Secured Party, for filing with California, a California UCC Financial Statement, which Secured Party shall file.

2. Collateral

As used herein, the "Collateral" shall refer to the following: (i) All assets, tangible and intangible, of NAS, wherever located; and (ii) all additions and substitutions to or for the items referred to in (i) above; and (iii) all proceeds therefrom; and (iv) if a part of the Collateral is inventory or equipment, any after acquired inventory or equipment shall also be considered Collateral (hereinafter collectively referred to as the "Collateral").

3. Books and Records; Inspection

Borrower shall keep and maintain, at its expenses, complete records of the Collateral. Secured Party shall have the right at any time and from time to time, without notice, to call at Borrower's place of business during normal business hours to inspect the Collateral and to inspect the correspondence, books, and records of Borrower relating to the Collateral.

4. Representations and Warranties of Borrower

Borrower represents and warrants to secured Party that, with respect to the Collateral, Borrower posses and shall possess at all times while this Security Agreement is in effect, full, complete and unencumbered title to such goods, subject only to Secured Party's security interest hereunder.

5. Default

Debtor shall be deemed to be in "default" under this Agreement is Debtor fails to pay any amount due under the Loan Agreement 90 days after written demand by Secured Party to Debtor for such payment, or breaches any other provisions of the Loan Agreement.

6. Rights Upon Default

6.1 Upon the occurrence of any Event of Default hereunder, Secured party, at its option, may exercise any one or more of the cumulative rights and remedies hereinafter set forth and any other right or remedy provided for in this Agreement or available at law or in equity. Any one or more of such rights and remedies may be exercised simultaneously or successively, and the initiation or completion of any such exercise shall not constitute an election and shall not stop or prevent the pursuit of any other right or remedy. Upon the occurrence of any Event of Default hereunder Secured Party, in its discretion, may:

(a) Accelerate the maturity of, and declare immediately due and payable, the full unpaid amount of Debtor's indebtedness to Secured Party under the Loan Agreement and any other Secured Obligation;

(b) Enter on Debtor's premises to assemble and take possession of the Collateral.

(c) Require Debtor to assemble the Collateral and make its possession available to Secured Party at a place designated by Secured Party that is reasonably convenient to both Debtor and Secured Party.

(d) Enter Debtor's premises, render the Collateral, if equipment, usable and dispose of its in the manner provided by the Uniform Commercial Code of California on Debtor's premises.

(e) Incur expenses, including reasonable attorney's' fees and related costs, in the exercise of any right or remedy under or in connection with this Agreement, including but not limited to expenses related to the protection of Secured Party's security or the preservation of the Collateral. Debtor agrees to pay, or reimburse Secured Party, for all such expenses and all such expenses shall become a part of the Secured Obligations hereunder;

(f) Perform any obligation of Debtor hereunder, including but not limited to the reasonable expenditure of any funds or the taking of any action which Debtor is obligated to expend or take under or in connection with this Agreement.

(g) Notify any obligor or account debtor of the Debtor to make payments directly to Secured Party and collect, by legal proceedings or otherwise and endorse and receive all dividends, interest payments, proceeds and other sums and property now or hereafter payable on account of the Collateral.

(h) Notify other interested persons, firms or corporations of the default and of any of the Secured Obligations.

(i) Sue Debtor for the performance, demand or satisfaction of any of the Secured Obligations.

7. Miscellaneous

7.1 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

7.2 Assignment by Secured Party. Secured Party may assign its rights under this Security Agreement and the security interest created by this Security Agreement. Should Secured Party assign his rights under this Agreement or the security interest created by this Agreement, Secured Party's assignee shall be entitled, on written notice of the assignment being given by Secured Party to Debtor, to all performance required of Debtor by this agreement and all payments and monies secured by this Agreement.

7.3 Severability. Nothing contained in this Agreement shall be construed as requiring or permitting the commission of any act contrary to law. Wherever there is any conflict between any provision of this Agreement and any present or future statute, law, ordinance, or regulation pursuant to which the parties have no legal right to contract, the latter shall prevail, but in such event the provisions of this Agreement thus affected shall be curtailed and limited only to the extent necessary to bring them within the requirement of the law. In the event that any part, article, paragraph or clause of this Agreement shall be held to be indefinite or invalid, the entire \Agreement shall not fail on account thereof, and the balance of the Agreement shall continue in full force and effect.

7.4 Notices. Any and all notices, requests, demands and other communications which are required or may be given under, or in connection with, this Agreement shall be in writing and shall be deemed given when delivered in person or when received if by telegraphic or other electronic means (including, without limitation, telecopy or telex) or, if mailed, three business days after being deposited in the United States mail, certified or registered mail, postage prepaid, or if sent via Federal Express or similar courier service, two days after being deposited therewith, addressed to the party to whom it is to be given at the address hereinafter specified:

If to Debtor:

North American Systems, Inc. 1520 South Grand Avenue Santa Ana, CA 92705 Attention: George Aumond, President

If to Secured Party:

Reclamation Consulting & Applications, Inc. 23832 Rock field Blvd., Suite 275 Lake Forest, CA 92630 Attention: Gordon Davies, President

Any party hereto may, by notice given as provided herein, change the address to which, or the person to whose attention, notices shall be given.

7.5 Attorneys' Fees. In the event that any action, suit or proceeding is brought under or in connection with this Agreement, the prevailing party therein shall be entitled to its reasonable costs, expenses and attorneys' fees (including the reasonable estimate of the allocable costs of in-house legal counsel and staff).

7.6 Entire Agreement. This Agreement supersedes any and all oral and written statements and representations and together with the Revolving Loan Agreement contains the entire agreement among the parties hereto with respect to the subject matter hereof and the transactions contemplated hereby.

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

7.8 Captions. Captions and paragraph heading used herein are for convenience only, are not a part of this Agreement and shall not be used in construing it.

7.9 Gender. Terms used herein in any number of gender include other numbers or genders, as the context may require.

7.10 Defined Terms. All capitalized terms used herein shall have, unless otherwise defined herein, the meaning attributed to them in the Agreement.

7.11 Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California as applied between residents of the State of California entering into contracts to be performed wholly within the State of California.

7.12 Construction. This Agreement shall be construed without regard to the identity of the person who drafted the various provisions of the same. Each and every provision of this Agreement shall be construed as though all of the parties participated equally in the drafting of the same. Consequently, the parties acknowledge and agree that any rule of construction that a document is to be construed against the drafting party shall not be applicable to this Agreement.

IN WITNESS WHEREOF, this Agreement has been duly executed s of the day and year first above written.

SECURED PARTY                                   DEBTOR

RECLAMATION CONSULTING &                        NORTH AMERICAN SYSTEMS, INC.
APPLICATIONS, INC.

By                                                      By

Title                                                   Title


EX31.1
RECLAMATION CONSULTING AND APPLICATIONS, INC.

(FORMERLY, RECYCLING CENTERS OF AMERICA, INC.)

CERTIFICATIONS
JUNE 30, 2004

I, Gordon W. Davies, certify that:

1. I have reviewed this annual report on Form 10-K of Reclamation Consulting and Applications, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

(a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and

(c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

(a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date:  July 27, 2004

/s/ Gordon W. Davies
------------------------------------
Gordon W. Davies,
President


EX31.2

RECLAMATION CONSULTING AND APPLICATIONS, INC.
(FORMERLY, RECYCLING CENTERS OF AMERICA, INC.)

CERTIFICATIONS
JUNE 30, 2004

I, Michael C. Davies,, certify that:

1. I have reviewed this annual report on Form 10-K of Reclamation Consulting and Applications, Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

(a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and

(c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

(a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date:  October 1, 2004

/s/ Michael C. Davies
------------------------------------
Michael C. Davies,
Secretary


EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Reclamation Consulting and Applications, Inc. (the"Company") for the period ended June 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Gordon W. Davies, President of the Company, and Michael C. Davies, Secretary of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gordon W. Davies
------------------------------------
Gordon W. Davies
President
Dated: October 01, 2004



/s/ Michael C. Davies
------------------------------------
Michael C. Davies
Secretary

Dated:  October 01, 2004


EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Reclamation Consulting and Applications, Inc. (the"Company") for the period ended June 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Gordon W. Davies, President of the Company, and Michael C. Davies, Secretary of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gordon W. Davies
------------------------------------
Gordon W. Davies
President
Dated: October 01, 2004



/s/ Michael C. Davies
------------------------------------
Michael C. Davies
Secretary

Dated:  October 01, 2004