EXHIBIT 10.12
                               GASCO ENERGY, INC.
                              EMPLOYMENT AGREEMENT

         THIS  AGREEMENT is made as of this 14th day of February 2003 by Mark A.
Erickson at 1135 E. Kistler Ct., Highlands Ranch, CO 80126,  ("Executive"),  and
GASCO ENERGY,  INC., a Nevada  corporation,  with offices at 14 Inverness  Drive
East, Suite H236,  Denver,  Colorado 80112 (the  "Company"),  for the purpose of
setting forth the terms and conditions of Executive's  employment by the Company
and to protect the Company's knowledge,  expertise,  customer  relationships and
the  confidential  information  the Company  has  developed  regarding  clients,
customers,   shareholders,   option  holders,   employees,   products,  business
operations and services. As of the Effective Date, this Agreement supersedes any
prior understandings or agreements, including the Agreement dated July 11, 2001,
between  Executive  and the  Company  or any of the  Company's  subsidiaries  or
affiliates.

                                    RECITALS:

         WHEREAS,  the Board desires to provide for the continued  employment of
Executive and to make certain  changes in  Executive's  employment  arrangements
with the Company which the Board has determined will reinforce and encourage the
continued  attention  and  dedication to the Company of Executive as a member of
the  Company's  management,  in  the  best  interest  of  the  Company  and  its
shareholders.  Executive  is willing to commit  himself to continue to serve the
Company,  on the terms and conditions  herein provided,  although this Agreement
may be amended at any time by written agreement among the parties; and

         WHEREAS,  in order to effect the  foregoing,  the Company and Executive
wish to enter into an employment agreement on the terms and conditions set forth
below,

         NOW  THEREFORE,  in  consideration  of the premises and the  respective
covenants and  agreements of the parties herein  contained,  and intending to be
legally bound hereby, the parties hereto agree as follows:

1.       TIME AND EFFORTS

         1.1  Executive  shall be  employed  as the  Company's  Chief  Executive
Officer  and  President  and shall  devote his  full-time  attention,  except as
allowed in subsections  1.3 below, to the duties and  responsibilities  of Chief
Executive Officer and President.  Subject to consultation with and the direction
of the Board of Directors,  Executive  shall have full  responsibility  for, and
specific  authority as described  in the bylaws of the  Corporation,  Article V,
Section 11.0 (Attached-Exhibit A).

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         1.2 In the  performance  of  all  of  his  responsibilities  hereunder,
Executive  shall  be  subject  to all  of the  Company's  policies,  rules,  and
regulations applicable to its officers and employees generally.  Executive shall
report to the Board of Directors.

         1.3 Without the prior express  authorization of the Board,  which shall
not  unreasonably  be withheld,  Executive  shall not,  directly or  indirectly,
during the Term of this  Agreement  engage in any activity  competitive  with or
adverse to the Company's  business,  whether alone,  as a partner or independent
contractor,  or as an officer,  director,  or employee of any other corporation.
This  Agreement  shall not be  interpreted  to  prohibit  Executive  from making
passive personal  investments,  conducting private business affairs, or engaging
in educational or charitable  activities,  if those activities do not materially
interfere with the services required hereunder.  Subject to the reasonable prior
approval  of the  Board,  Executive  may  act as a  director  of any  profit  or
non-profit  corporation  or  other  business  entity,  if such  activity  is not
inconsistent with the business of the Company.  Executive's oil and gas holdings
are detailed in Exhibit B of this agreement.

         1.4 In order to  induce  the  Company  to enter  into  this  Agreement,
Executive  represents  and warrants to the Company  that (i)  Executive is not a
party or subject  to any  employment  agreement  or  arrangement  with any other
person,  firm,  company,  corporation  or  other  business  entity  which  is in
competition  with the Company;  and (ii)  Executive is subject to no  restraint,
limitation  or  restriction  by virtue of any  agreement or  arrangement,  or by
virtue of any law or rule of law or  otherwise  which would  impair  Executive's
right or  ability to enter the  employ of the  Company  or to perform  fully his
duties and obligations pursuant to this Agreement.

         1.5 Without first obtaining the written permission of the Board in each
instance,  Executive  will not  authorize  or permit  the  Company to engage the
services,  of, or engage in any business activity with, or provide any financial
or other  benefit to, any  affiliate  of  Executive.  The phrase  "affiliate  of
Executive" as used in this Agreement shall mean and include  Executive's  family
by blood or marriage (including, without limitation,  parents, spouse, siblings,
children and in-laws),  and any business or business entity which is directly or
indirectly owned or controlled by Executive or any member of Executive's  family
or in which  Executive  or any  member of  Executive's  family has any direct or
indirect financial interest whatsoever.


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2.       TERM

         The initial Term of this  Agreement is from  1/2/2003  (the  "Effective
Date") until 1/31/2006;  however on each anniversary of the Effective Date after
12/31/2005,  this Agreement  shall be  automatically  extended for an additional
one-year Term from such anniversary  date unless the Company notifies  Executive
in writing  90 days  prior to the  anniversary  of the  Effective  Date that the
Company  will not be renewing  this  Agreement  on the next  anniversary  of the
Effective  Date, or unless sooner  terminated  pursuant to Section 4. References
hereinafter to the "Term" of this Agreement shall refer to both the initial term
and any extended term of Executive's employment hereunder.

3.       COMPANY'S AUTHORITY

         Executive  agrees to observe and comply with the  reasonable  rules and
regulations  of Company as adopted by the Board of  Directors  of the Company or
committee of the Board of Directors respecting performance of Executive's duties
and to carry out and perform orders, directions, and policies of Company as they
may be, from time-to-time, stated to Executive either verbally or in writing.

4.       TERMINATION

         This  Agreement  shall be  terminated  upon the happening of any of the
following events:

         4.1      Upon the death of Executive.

         4.2      Whenever the Company and Executive shall mutually agree to
termination.

         4.3 At the option of the Company, upon written notice by the Company to
Executive,  for Cause. "Cause" shall exist for such termination if Executive (i)
pleads or is found guilty of a felony  involving an act of  dishonesty  or moral
turpitude  by a court  of  competent  jurisdiction;  (ii) has  engaged  in gross
misconduct,  materially and demonstratively  injurious to the company; (iii) has
made any material misrepresentation or omission to the Company under Section 1.5
hereof;  (iv) has  committed  an  unexcused  material  breach of his duty in the
course of Executive's employment; (v) has been guilty of habitual neglect of his
duties;  (vi) has  usurped a  corporate  opportunity,  is  guilty of  fraudulent
embezzlement of property or funds of the Company,  or committed any act of fraud
or  intentional   misrepresentation,   moral  turpitude,   dishonesty  or  other
misconduct  that would  constitute a felony;  or (vii) has committed a material,
unexcused breach of this Agreement.  Prior to any termination for Cause, Company
shall give Executive written notice.

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         4.4  The  Company  may  terminate  Executive's  employment  under  this
Agreement  at any time  without  Cause,  on at least  ninety (90)  working  days
written  notice,  subject to provisions for payment of compensation as specified
under  Section  5.5 of this  Agreement.  Should the  Company  (i)  significantly
diminish  Executive's  responsibilities  without  Cause,  (ii) fail to  maintain
appropriate  directors' and officers' liability  insurance,  or (iii) remove him
from the Board of Directors of the Company,  this Agreement shall terminate,  at
Executive's  option,  subject  to  provisions  for  payment of  compensation  as
specified under Section 5.5 of this Agreement.

         4.5      At the option of Executive, upon 90 days written notice by
Executive to the Company.

         4.6 If as a result of Executive's  incapacity due to physical or mental
illness,  Executive  shall  have been  absent  from his  duties  hereunder  on a
full-time basis for the entire period of three consecutive months, and within 30
days after  written  notice of  termination  is given (which may occur before or
after  the end of such  three-month  period)  shall  not  have  returned  to the
performance  of his duties  hereunder  on a  full-time  basis,  the  Company may
terminate Executive's employment hereunder.

         4.7      Upon the expiration of the Term of this Agreement, or any
extension or renewal thereof.

         4.8      Upon a Change of Control as defined in subsection 5.5.5 below.

5.       CURRENT COMPENSATION

         5.1 Annual Salary.  For all services  rendered by Executive  under this
Agreement, the Company shall pay or cause to be paid to Executive, and Executive
shall accept the Annual Salary and Bonus Compensation, if any, all in accordance
with the subject to the terms of this Agreement. For purposes of this Agreement,
the term "Compensation" shall mean the Annual Salary and Bonus Compensation,  if
any.  Executive  shall be entitled to receive as current  compensation an Annual
Salary in an amount of not less than $120,000.  (Hereinafter  referred to as the
"Salary").  References in this  Agreement to "annual" or "per annum" or "Annual"
and similar phrases shall mean the twelve-month period commencing on January 1st
of each year during the Term of this Agreement unless otherwise indicated.

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         5.2 Bonus  Compensation.  Executive  shall also be  entitled  to annual
incentive  compensation ("Bonus Compensation") equal to 0.875% of the sum of the
Company's net after-tax  earnings as reported in the Company's  audited year-end
financial statements plus interest expense,  deferred taxes, depletion expenses,
depreciation  expenses,  amortization  expenses, and exploration expenses (which
sum  is  hereinafter  referred  to as  "cash  flow").  The  parties  agree  that
exploration  expenses  would be deducted from net after-tax  earning only if the
Company has elected the  "successful-efforts"  accounting method; if the Company
has  elected the  "full-cost"  accounting  method,  exploration  expenses  would
already be deducted in the computation of the Company's net after-tax  earnings,
subject to the additional provisions forth in Sections 5.2.1 and 5.2.2 below. In
addition,  prior to January 31 of each year  during the Term of this  Agreement,
Executive  and the Company shall  mutually  agree to a  performance-based  bonus
plan.  Such  bonus  plan  shall be  based  on  mutually  agreeable  measures  of
performance.

                  5.2.1 The parties agree that Bonus  Compensation  payments are
intended to be based on cash flow from undrilled Company-owned  properties as of
July 11, 2001 and  undrilled  properties  acquired by the Company  subsequent to
July 11,  2001.  Should the Company  acquire  proven-producing  properties  with
existing  cash flows,  net income less the  hypothetical  income tax due thereon
plus  interest  expense,   deferred  taxes,  depletion  expenses,   depreciation
expenses,  amortization  expenses,  and exploration  expenses (which exploration
expenses would only be added if the Company has elected the "successful-efforts"
accounting  method)  attributable to the acquired,  proven-producing  properties
shall be deducted from the base amount upon which the cash flow is derived.

                  5.2.2 Should the Company acquire  proven-producing  properties
with  existing  cash flows,  the parties  agree to  negotiate in good faith with
respect to the development of a schedule of the declining  production profile of
such  properties.  The parties agree that the amount derived by multiplying  the
proven-production  stream,  as set forth in the schedule,  by the  corresponding
sales price,  less  corresponding  production costs shall be subtracted from the
cash flow upon which Bonus Compensation is based.

                  5.2.3 Bonus Compensation  payments due hereunder shall be made
within 15 days after the Company has received  the signed audit report  covering
the year-end financial statements.

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         5.3      Reserved.

         5.4 Payments of Current Compensation. The payment of Executive's Annual
Salary shall be made in monthly  installments on the then prevailing  paydays of
the Company.  Any payment for Incentive  Compensation will be made in accordance
with the Executive Incentive  Compensation Plan, and payment will be made in one
lump sum  concurrently  with payments made to others in senior  management.  All
payments are subject to the customary withholding tax and other employment taxes
as required with respect to compensation paid to an employee.

         5.5      Payment of Compensation on Termination.

                  5.5.1 Upon termination of Executive's  employment prior to the
expiration of this  Agreement,  if such  termination is pursuant to Section 4.1,
4.2, 4.5, 4.6, or 4.7 hereof,  Executive shall be entitled to any Annual Salary,
Bonus  Compensation,  and  vacation  accrued  but  unpaid  through  the  date of
termination of employment,  payable on the date of termination.  Executive shall
also be  entitled to  exercise  any vested Plan  options for a period of One (1)
Year following the termination of his employment hereunder.

                  5.5.2 Upon termination of Executive's  employment prior to the
expiration of this  Agreement,  if such  termination  is pursuant to Section 4.4
hereof,  Executive shall be entitled to any Annual Salary,  Bonus  Compensation,
and vacation  accrued but unpaid  through the date of termination of employment,
payable  on the  date  of  termination.  Executive  shall  also be  entitled  to
compensation in an amount equal to the greater of (i) Executive's  Annual Salary
for one year and (ii) Executive's  Annual Salary for the period from the date of
termination  through the remaining Term of this Agreement plus cash equal to the
greater amount of $500,000 or the amount that is to be  distributed  pursuant to
paragraph  5.5.4  (a)  below as if there  were a Board of  Director  Recommended
Change of Control.  The stock price used in calculating such amount in 5.5.4 (a)
shall be the average  closing  price for the thirty (30)  trading  days prior to
termination.  Executive  shall also be  entitled  to  exercise  any vested  Plan
options for a period of one year  following the  termination  of his  employment
hereunder.  The provisions of this Section 5.5.2 shall apply throughout the Term
of this  Agreement,  including  any period of extension in  accordance  with the
provisions of Section 2 above.

                  5.5.3 If the Company fails to extend this contract pursuant to
Section 2 hereof Company shall pay to Executive cash equal to the greater amount
of $500,000 or the amount that is to be distributed  pursuant to paragraph 5.5.4
(a) below as if there were a Board of Director  Recommended Change of Control on
or prior to the then  applicable  date of  expiration in effect  hereunder.  The
stock  price used in  calculating  such amount in 5.5.4 (a) shall be the average
closing price for the thirty (30) trading days prior to termination.

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                  5.5.4 In the event that this Agreement  terminates as a result
of a Change of Control (as hereafter  defined),  Executive  shall be entitled to
any Annual Salary,  Bonus Compensation,  and vacation accrued but unpaid through
the date of termination of employment,  payable on the date of termination. Upon
termination as a result of a Change of Control, Executive shall also receive the
following  additional  compensation  payable  in cash on the  date a  Change  of
Control occurs:
                  a) If the Change of Control  occurs  pursuant to a transaction
or series of transactions  that have been recommended to the shareholders of the
Company  by the  Company's  Board of  Directors  then  Executive  shall  receive
additional  compensation  based on the cash equivalent  consideration  paid to a
holder of one share of the Company's Common Stock as set forth below:

              Value of consideration for each       Compensation to be paid to
 Level                  Common Share                         Executive
------------- --------------------------------- --------------------------------
------------- --------------------------------- --------------------------------
   I                   $1.00 - $1.49                         $500,000
  II                   $1.50 - $.199                        $1,000,000
  III                  $2.00 - $2.49                        $2,000,000
  IV                   $2.50 - $2.99                        $2,500,000
   V                   $3.00 - $3.49                        $3,000,000
  VI                       >$3.50                           $3,500,000

                  b) If the Change of Control  occurs  pursuant to a transaction
or series of  transactions  that have not been  recommended  by the Board of the
Directors to the  shareholders  of the Company then Executive  shall receive the
greater of  $1,500,000  or cash equal to the  amount  that is to be  distributed
pursuant  to  paragraph  5.5.4  (a) above as if there  were a Board of  Director
Recommended Change of Control immediately upon such Change of Control.
Executive  shall be entitled to exercise  all granted  Plan stock  options for a
period of one year following the termination of his employment hereunder.

                  5.5.5  For  all  purposes  of this  Agreement,  a  "change  of
control"  shall mean and shall be deemed to have occurred if: (i) there shall be
consummated  (X)  any  consolidation  or  merger  of the  Company  with  another
corporation or entity and as a result of such  consolidation or merger less than
50%  of  the  outstanding  voting  securities  of  the  surviving  or  resulting
corporation or entity shall be owned,  directly or indirectly,  in the aggregate
by the stockholders of the Company,  other than  "affiliates," as defined in the


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Securities  Exchange Act of 1934, as amended (the "Exchange  Act"), of any party
to such  consolidation  or merger,  as the same shall have  existed  immediately
prior to such consolidation or merger, or (Y) any sale, lease, exchange or other
transfer (or in one transaction or a series of related  transactions) of all, or
substantially  all, of the assets of the Company;  (ii) the  stockholders of the
Company  shall  have  approved  any  plan or  proposal  for the  liquidation  or
dissolution  of the  Company;  (iii) any  "person"  (as such term is used in the
Section  13(d)  and  14(d)  (2) of the  Exchange  Act)  shall  have  become  the
beneficial  owner  (within the meaning of Rule 13d-3 under the Exchange  Act) of
50% or more  of the  Company's  outstanding  common  stock,  without  the  prior
approval  of the  Board;  (iv)  during  any  period  of two  consecutive  years,
individuals who at the beginning of such period  constituted the entire Board of
Directors  shall have  ceased for any reason to  constitute  a majority  thereof
unless  the  election,   or  the   nomination  for  election  by  the  Company's
stockholders,  of each new Director was approved by vote of at least  two-thirds
of the Directors then still in office who were Directors at the beginning of the
period;  (v) a change  of  control  of a nature  that  would be  required  to be
reported in response to item 6(e) of Schedule 14A of Regulation 14A  promulgated
under the Exchange Act shall have occurred;  or (vi) any consolidation or merger
of the  Company  with  another  corporation  or  entity  and as a result of such
consolidation  or merger  Executive is not retained by the Board of Directors as
the Chief Executive Officer of the Company (a "Change of Control").

6. DETERMINATION OF DISABILITY; PAYMENT OF DISABILITY INSURANCE PREMIUMS

         6.1 In the event Executive's disability,  as defined in Section 4.6, is
in question,  and after written request by the Company,  Executive refuses to be
examined by his  regularly  attending  physician or if the  regularly  attending
physician fails to submit a report within 30 days after the examination has been
requested by the Company,  the  determination of disability shall be made by the
Company.

         6.2 Executive shall be entitled to the disability benefits available to
all  executive  employees  of the  Company.  It is the intent of the  Company to
establish a disability insurance program as soon as practicable.

7.       MISCELLANEOUS BENEFITS

         7.1 Medical  Insurance.  Executive  and his family shall be entitled to
participate in any medical,  dental,  vision, life, long-term disability,  other
insurance or employee  benefit  program  instituted or maintained by the Company
for the benefit of its executive  employees.  It is the intent of the Company to
establish a medical and dental insurance program as soon as practicable. Company
will pay 50% of the  premiums.  Executive  is required to pay his portion of the
premiums in accordance with health insurance contract.

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         7.2 401(k)  plan.  Executive  shall be entitled to  participate  in the
Company's 401(k) or other similar retirement benefit plan. The Company agrees to
implement a 401(k) or other  similar  retirement  benefit  plan as soon as it is
reasonably  feasible,  based  on the  size  of the  Company  and  its  financial
condition.

         7.3 Payment of Benefits on Termination  of  Employment.  If Executive's
employment  with the  Company is  terminated,  Executive  shall be  entitled  to
maintain his employee benefits in accordance with his maximum COBRA rights.

         7.4 Business Expenses. Executive shall be reimbursed for all reasonable
expenses  incurred by Executive in  connection  with  Executive's  attendance of
business  meetings and  promotion  of Company  business,  including  the cost of
travel to and from the Company's offices,  upon presentation by Executive to the
Company  of an  expense  report  and  adequate  records  or other  documentation
substantiating  the  expenditures,  not less frequently  than monthly.  Any such
amounts  disallowed,  as a business  expense  for  federal  or state  income tax
purposes,  shall be deemed  additional  salary to  Executive.  The fact that the
Company may not reimburse Executive for an expense is not an indication that the
Company  determined  that the  expense  was not  incurred  on its  behalf  or in
connection with the Company's  business.  In addition,  upon  presentation of an
invoice by Executive to the Company,  an accountable  expense for automobile and
is to be paid each month during the Term of this Agreement.

         7.5 Additional Benefits.  Executive shall be entitled to participate in
all programs,  rights and benefits for which executive is otherwise  entitled to
any bonus plan,  incentive plan,  participation plan or extra compensation plan,
pension plan,  overriding  royalty plan in proportion to his Annual Salary base,
profit sharing plan, life, medical,  dental,  disability or other insurance plan
or policy or other plan or benefit the Company may provide for senior executives
or for employees of the Company generally from time to time in effect during the
term of this  Agreement.  For the  avoidance  of doubt,  the  rights  granted or
afforded  to  Executive  under  any such  plans  shall be not less than the most
favorable  rights and highest  amounts  granted to employees of similar or lower
position with the Company and on terms at least as favorable.

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8.       VACATION

         During  each  calendar  year of the Term of this  Agreement,  Executive
shall be entitled to twelve (12) weeks vacation,  comprised of five (5) weeks of
paid vacation and seven (7) weeks of vacation  without pay.  Executive  shall be
entitled to receive payment for accrued  vacation not taken during each calendar
year during the Term of this  Agreement or may accrue such vacation for use in a
subsequent  calendar year;  however  Executive  shall be subject to a maximum of
three (3) weeks of accrued vacation.

9.       RESTRICTIVE COVENANTS

         9.1  Confidential  Information.  Executive  acknowledges  that  in  his
employment hereunder he occupies a position of trust and confidence.  During the
Term,  and  thereafter in  accordance  with the  provisions  of this  Agreement,
Executive shall not,  except as may be required to perform his duties  hereunder
as required by applicable  law, and except for  information  which is or becomes
publicly  available  other  than as a result  of a breach  by  Executive  of the
provisions  hereof,  disclose to others or use,  whether directly or indirectly,
any Confidential Information.  "Confidential Information" shall mean information
about the  Company,  its  subsidiaries  and  affiliates,  and  their  respective
suppliers,  clients  and  customers  that is not  disclosed  by the  Company for
financial  reporting purposes and that was learned by Executive in the course of
his employment hereunder,  including (without limitation) proprietary knowledge,
trade secrets, market research, data, formulae, information and supplier, client
and customer  lists and all papers,  resumes,  and records  (including  computer
records) of the documents  containing such Confidential  Information.  Executive
agrees to deliver or return to the Company, at the Company's request at any time
or upon  termination or expiration of his  employment,  or as soon thereafter as
possible,  all  documents,  computer  tapes and  disks,  records,  lists,  data,
drawings,  prints,  notes  and  written  information  (and all  copies  thereof)
furnished by the Company or any of its  subsidiaries  affiliates  or prepared by
Executive  during the Term of his  employment  by the Company.  The  obligations
hereof shall not apply to any  information  that is or becomes  public or in the
public domain by action of the Company or through no fault of Executive.

         9.2 Business  Diversion.  During the Term and for 12 months thereafter,
Executive shall not,  directly or indirectly,  influence or attempt to influence
customers or suppliers of the Company or any of its  subsidiaries  or affiliates
to divert their business to any  competitor of the Company,  to the exclusion of
the  Company.  However,  Executive  may  contract  with the same  customers  and
suppliers  after the Term  hereof so long as it is not to the  exclusion  of the
Company's relationships with such customers and suppliers.

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         9.3  Non-Solicitation.   Executive  recognizes  that  he  will  possess
confidential   information   about  other  employees  of  the  Company  and  its
subsidiaries  and affiliates  relating to, among other things,  their education,
experience,  skills,  abilities,  compensation and benefits,  and  interpersonal
relationships with suppliers and customers of the Company.  Executive recognizes
that  the  information  he will  possess  about  these  other  employees  is not
generally known, is of substantial value to the Company, and will be acquired by
him because of his business  position with the Company.  Executive  agrees that,
during  the  Term  and for 12  months  thereafter,  he  will  not,  directly  or
indirectly,  solicit or recruit any employee of the Company, its subsidiaries or
affiliates  for the purpose of being  employed by him or by any other  person on
whose  behalf he is acting as an agent,  representative  or employee and that he
will not convey any such  confidential  information or trade secrets about other
employees of the Company, including its subsidiaries or affiliates, to any other
person.  However, if Executive's employment is terminated in accordance with the
provisions  of  Section  4.4,  nothing  herein  shall  prevent   Executive  from
soliciting or recruiting,  directly or  indirectly,  any employee of the Company
recruited to the Company by Executive.

         9.4 If Executive  breaches,  or threatens to commit a breach of, any of
the provisions of Section 9 (the "Restrictive  Covenants"),  the Company and its
subsidiaries shall have the right to seek the following:

                  9.4.1 Specific  Performance.  The right and remedy to have the
Restrictive   Covenants   specifically   enforced  by  any  court  of  competent
jurisdiction,  it being  agreed  that any  breach  or  threatened  breach of the
Restrictive  Covenants  would  cause  irreparable  injury to the  Company or its
subsidiaries  and that money  damages may not provide an adequate  remedy to the
Company or its subsidiaries.

                  9.4.2 Accounting. The right and remedy to require Executive to
account for and pay over to the Company or its subsidiaries, as the case may be,
all  compensation,  profits,  monies,  accruals,  increments  or other  benefits
derived or received by Executive as a result of any  transaction  constituting a
breach of the Restrictive Covenants.

                  9.4.3   Severability  of  Restrictive   Covenants.   Executive
acknowledges and agrees that the Restrictive  Covenants are reasonable and valid
in  geographic  and  temporal  scope  and in all  other  respects.  If any court
determines at any of the Restrictive Covenants,  or any part thereof, is invalid
or unenforceable,  the remainder of the Restrictive  Covenants shall not thereby
be  affected  and shall be given  full  effect  without  regard  to the  invalid
provisions.

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                  9.4.4 Blue Penciling.  If any court determines that any of the
Restrictive  Covenants,  or any part thereof,  is  unenforceable  because of the
duration or geographic scope or such provision,  such court shall have the power
to reduce the duration or scope of such  provision,  as the case may be, and, in
its reduced form, such provision shall not be enforceable.

                  9.4.5 Enforceability of Jurisdictions. The obligations in this
Section 9 shall survive the termination of Executive's  employment or expiration
of this Agreement and shall be fully enforceable  thereafter.  Executive intends
to and hereby confers jurisdiction to enforce the Restrictive Covenants upon the
courts of any  jurisdiction  within  the  geographic  scope of such  Restrictive
Covenants.  If the  courts  of any one or more of such  jurisdictions  hold  the
Restrictive  Covenants  unenforceable  by reason of the breadth of such scope or
otherwise,  it is the intention of Executive that such  determination not bar or
in any way affect the right of the  Company  or its  subsidiaries  to the relief
provided  above in the courts of any other  jurisdiction  within the  geographic
scope  of  such  Restrictive  Covenants,  as to  breaches  of  such  Restrictive
Covenants in such other respective jurisdictions,  such Restrictive Covenants as
they relate to each jurisdiction being, for this purpose, severable into diverse
and independent Restrictive Covenants.

10. PARTICIPATION IN STOCK AND OPTION EXECUTIVE COMPENSATION PLAN

         10.1  Executive  shall  receive  additional  grants of  options,  stock
appreciation rights,  phantom stock rights, and any similar option or securities
or  equity  compensation  when  and as such  grants  are  considered  for  other
executives  or  employees  of the Company in an amount equal to 25% of the total
number of options  granted to all  executives and employees in any calendar year
during the term of this contract beginning in 2003.

         10.2 If any conditions  contained  herein  contradict the Plan then the
terms of this Agreement shall supersede those of the Plan.

         10.3 In the event of termination of Executive's  employment pursuant to
a Change of Control, Executive shall be entitled to exercise all vested options,
and any additional  options that have been granted.  In the event of termination
of Executive's  employment  pursuant to Section 4.4, any additional options that
have been granted but have not yet vested in  accordance  with their terms shall
immediately vest.

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         10.4  Within 120 days of the  Effective  Date the  Company  shall issue
Executive  187,500 shares of Company common stock pursuant to a restricted stock
plan in exchange for Executive  surrendering all of Executive's  rights,  claims
and interests in the following options to purchase Company common stock:

                           250,000  options  priced  at  $3.00  per  share,  and
                           875,000 options priced at $2.00 per share.

11.      DISPUTE RESOLUTION

         The parties agree that any dispute that may arise in  connection  with,
arising out of or relating to this Agreement, or any dispute that relates in any
way,  in whole or in part,  to  Executive's  employment  with the  Company,  the
termination of that employment, or any other dispute by and among the parties or
their  successors,   assigns  or  affiliates,  shall  be  submitted  to  binding
arbitration in Arapahoe  County,  Colorado  according to the Employment  Dispute
Resolution Rules and Procedures of the American  Arbitration  Association.  This
arbitration  obligation  extends  to any and all  claims  that may  arise by and
between the parties or their  successors,  assigns or affiliates,  and expressly
extends  to,  without  limitation,  claims  or  cause  of  action  for  wrongful
termination,  impairment of ability to compete in the open labor market,  breach
or an express or implied contract, breach of the covenant of good faith and fair
dealing,  breach  of  fiduciary  duty,  fraud,  misrepresentation,   defamation,
slander, infliction of emotional distress,  disability, loss of future earnings,
and  claims  under  the  applicable  state   constitution,   the  United  States
Constitution,   and  applicable  state  fair  employment  laws,   federal  equal
employment   opportunity   laws,  and  federal  and  state  labor  statutes  and
regulations,  including,  but not limited to, the Civil  Rights Act of 1964,  as
amended, the  Labor-Management  Relations Act, as amended, the Worker Retraining
and Notification  Act of 1988, the Americans With  Disabilities Act of 1990, the
Rehabilitation Act of 1973, as amended,  the Employee Retirement Income Security
Act of 1974, as amended,  the Age  Discrimination  in Employment Act of 1967, as
amended, and the California Fair Employment and Housing Act, as amended.


                                       13
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12.      ASSIGNMENT

         This Agreement is a personal  contract,  and the rights,  interests and
obligations  of  Executive  hereunder  may not be sold,  transferred,  assigned,
pledged  or  hypothecated   except  as  otherwise  expressly  permitted  by  the
provisions of this  Agreement.  Executive may, with the prior written consent of
the Company (which shall not unreasonably be withheld), assign this Agreement to
an entity  (corporation,  partnership  or  limited  liability  company)  that is
controlled by Executive.  Executive shall not under any  circumstances  have any
option or right to require payment  hereunder  otherwise than in accordance with
the terms hereof. Except as otherwise expressly provided herein, Executive shall
not have  any  power of  anticipation,  alienation  or  assignment  of  payments
contemplated  hereunder,  and all rights and benefits of Executive  shall be for
the sole personal  benefit of  Executive,  and no other person shall acquire any
right, title or interest hereunder by reason of any sale, assignment,  transfer,
claim  or  judgment  or  bankruptcy  proceedings  against  Executive;  provided,
however,  that in the event of  Executive's  death,  Executive's  estate,  legal
representatives  or  beneficiaries  (as the case may be) shall have the right to
receive  all of the  benefits  that  accrued to  Executive  pursuant  to, and in
accordance with, the terms of this Agreement.

13.      SUCCESSOR

         This Agreement may be assigned by the Company to any successor interest
to its  business.  This  Agreement  shall  bind and inure to the  benefit of the
Company's successors and assigns as well.

14.      NOTICES

         All  notices,  requests and demands  hereunder  shall be in writing and
delivered by hand, by mail, or by telegram, and shall be deemed given if by hand
delivery,  upon such  delivery,  and if by mail,  48 hours after  deposit in the
United States mail, first class,  registered or certified mail,  postage prepaid
and properly addressed to the party at the address set forth at the beginning of
this Agreement.  Any party may change its address for purposes of this paragraph
by giving the other  party  written  notice of the new address in the manner set
forth above.

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15.      INVALID PROVISIONS

         Invalidity  or  unenforceability  of any  particular  provision of this
Agreement shall not affect the other provisions hereof, and this Agreement shall
be construed in all respects as if such invalid or unenforceable  provision were
omitted.

16.      AMENDMENT, MODIFICATION OR REVOCATION

         This Agreement may be amended, modified or revoked in whole or in part,
but only by a written instrument which specifically refers to this Agreement and
expressly  states that it constitutes an amendment,  modification  or revocation
hereof, as the case may be, and only if such written  instrument has been signed
by each of the parties to this Agreement.

17.      HEADINGS

         The headings in this  Agreement are inserted for  convenience  only and
are not to be considered in construction of the provisions hereof.

18.      ENTIRE AGREEMENT

         This Agreement contains the entire  understanding among the parties and
supersedes any prior written or verbal  agreements  between them  respecting the
subject  matter  hereof,  including,  without  limitation,  any prior  verbal or
written  employment  agreement  between  Executive  and the  Company.  Upon  the
effectiveness  hereof,  any  such  prior  verbal  or  written  agreements  shall
terminate.

         No  representations or warranties of any kind or nature relating to the
Company or its affiliates or their respective businesses,  assets,  liabilities,
operations,  future  plans or  prospects  have  been made by or on behalf of the
Company to Executive;  nor have any representations or warranties of any kind or
nature been made by Executive to the Company,  except as expressly  set forth in
this Agreement.

                                       15
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19.      ATTORNEYS' FEES

         If any legal action is necessary to enforce the terms and conditions of
this Agreement, the prevailing party in such action shall be entitled to recover
all  costs  of  suit  and  reasonable  attorneys'  fees  as  determined  by  the
arbitrator.

20.      FURTHER ASSURANCES

         The parties shall execute such  documents and take such other action as
is necessary or appropriate to effectuate the provisions of this Agreement.

21.      CONTROLLING LAW

         This Agreement shall be governed by the laws of the State of Colorado.

22.      WAIVER

         A waiver by either  party of any of the  terms  and  conditions  hereof
shall not be construed as a general  waiver by such party,  and such party shall
be free to reinstate  such part or clause,  with or without  notice to the other
party.

23.      INDEMNIFICATION

         To the fullest extent permitted by law and the Company's Certificate of
Incorporation and Bylaws, the Company shall indemnify, defend, and hold harmless
the Executive for all amounts (including, without limitation,  judgments, fines,
settlement payments,  losses, damages, costs and expenses,  including reasonable
attorneys  fees,  incurred or paid by Executive in  connection  with any action,
proceeding,  suit or investigation arising out of or relating to the performance
by  Executive  of  services  for,  or acting as, an officer or  employee  of the
Company or any subsidiary thereof. The Company agrees to use its best efforts to
maintain  directors' and officers' liability  insurance,  but the failure of the
Company to maintain such  insurance or any portion  thereof shall not negate nor
diminish Company's obligations as set forth in this paragraph.

24.      PERIODIC REVIEWS

         During  January  of each  year  during  the term  hereof,  the Board of
Directors of the Company shall review  Executive's  Annual Salary,  bonus, stock
options,  and additional  benefits then being  provided to Executive.  Following
each such review, the Company may in its discretion  increase the Annual Salary,
bonus, stock options, and benefits; however, the Company shall not decrease such
items during the period Executive serves as an employee of the Company. Prior to
November 30th of each year during the term hereof, the Board of Directors of the
Company shall communicate in writing the results of such review to Executive.


                                       16
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         IN WITNESS  WHEREOF,  the parties have  entered into this  Agreement on
February 14, 2003.

THE COMPANY:                                         EXECUTIVE:

GASCO ENERGY, INC.


By:  /s/ Marc A. Bruner                              /s/ Mark A. Erickson
     -------------------------                       -------------------------
      Marc A. Bruner, Chairman                       Mark A. Erickson




                                       17
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                                    Exhibit A



By laws of Gasco Energy Inc.



                                       18
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                                    Exhibit B
                               Oil & Gas Holdings


WI ownership in coalbed methane properties located in the state of Oklahoma.

ORRI in leasehold located in Oklahoma, Colorado, Utah and Wyoming.

Stock ownership in Rubicon Oil & Gas which holds ownership in properties located
in  Oklahoma,  Utah and  Colorado.  (Post  trade  of PIL  below,  will  become a
majority, controlling owner of Rubicon Oil & Gas.)

Stock  ownership  in  Pannonian  International.  (Will be  traded  plus cash for
additional ownership in Rubicon Oil & Gas.)

Partnership  interest in VECTRA CBM, LLC (through Rubicon Oil & Gas) which holds
ownership in coalbed methane properties located in the state of Oklahoma.

Partnership interest in Rock Island Resources, LLC which holds ownership in real
estate and mineral interests in the State of Oklahoma.

Misc. minority, non-controlling stocks in public companies.


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