Document:

Exhibit 10.3

                     AMENDED AGREEMENT OF PURCHASE AND SALE
                   OF STAR OF TEXAS ENERGY SERVICES, INC. AND
                      STAR OF TEXAS MINERALS RESOURCES LLC

This Agreement for the Purchase and Sale of the assets as described in Exhibit
"A" of STAR OF TEXAS ENERGY SERVICES, INC., STAR OF TEXAS MINERALS RESOURCES
LLC, HYDRO-FX, INC and BARNETT HOLDING, LLC all of P.O. Box 4038, Lago Vista,
Texas, 78645, , (hereinafter collectively referred to as "Seller") and EXTERRA
ENERGY INC., of Suite 1415 - 115 West 7th Street, Fort Worth, Texas, 76102, a
duly incorporated company in the state of Nevada (hereinafter referred to as
"Buyer") is made as of September 19th, 2007 (hereinafter called the "Effective
Date").

         1. Purchase and Sale. Seller agrees to transfer, assign and convey and
Buyer agrees to receive one hundred (100.00%) percent of Assets (including the
future right to use the name "Star of Texas Energy Services" and "Star of Texas
Mineral Resources") of the Seller as fully described and detailed in Exhibit "A"
to this agreement, which is attached hereto and made a part hereof for all
pertinent purposes, the same as if set forth at length herein, subject to all
reservations, exclusions, limitations and other matters affecting Seller's
mineral and royalty interests in and to the lands and leases described in
Exhibit "A" herein and further subject to the reservations and exclusions set
forth Section 5, below. The "Assets" hereunder shall consist of those working
interests, leases, mineral interests, royalty interests non-participating
royalty interests described in Exhibit "A", attached hereto including but not
limited to all oil, gas and other mineral interests and royalties therefrom, all
interest in oil and gas wells located thereon and therein, all equipment on such
oil and gas wells and all revenues and proceeds attributable to the mineral
interests, royalty interests and non-participating royalty interests from and
after the Effective Date (as defined below).

         2.1 Price. The purchase price for the Assets (hereinafter referred to
as the ("Purchase Price") shall be the sum of $6,000,000.00 U. S. funds, at
closing. The form of the payment shall be in the "common shares" of the Buyer at
a deemed price of $0.75 per share for a total of 8,000,000 shares.

         2.2 Restricted Shares. Star of Texas Energy Services, Inc., is
acquiring the Shares of Buyer as part of a Type C reorganization within the
meaning of the Internal Revenue Service and will issue them to SMLL Trust in
return for its own shares currently held by SMLL Trust (such shares are
restricted stock). All Sellers are acquiring the Shares of Buyer for their own
account and not with a view to their distribution within the meaning of Section
2(11) of the Securities Act. Such Shares are restricted stock and have been
acquired for investment and have not been registered under the securities act of
1933, as amended. Without such registration, such Shares may not be sold,
pledged, hypothecated or otherwise transferred at any time whatsoever, except
upon delivery to the Buyer of an opinion of counsel satisfactory to the Buyer
that registration is not required for such transfer or the submission to the
Buyer of such other evidence as may be satisfactory to the Buyer to the effect
that any such transfer shall not be in violation of the securities act of 1933,
as amended, or applicable state securities laws or any rule or regulation
promulgated thereunder.

                                  Page 1 of 10
<PAGE>

         3. Closing.

         3.1. Date. The Closing shall be on or before October 17, 2007 in Lago
Vista, Texas (or such other location within the United States as mutually
designated by the Buyer and Seller) or before said date as mutually agreed to by
the Seller and the Buyer

         3.2. Apportionment of Costs. Each party hereto shall bear its own costs
and expenses associated with the transactions contemplated hereby, including
attorneys' and agents' fees. Buyer shall bear all costs related to geophysical
evaluation and all other matters of its due diligence, including, but not
limited to its landman fees, attorneys' fees, appraisal fees, as well as
lenders' fees.

         3.3. Prorations. Ad valorem property taxes shall be pro-rated to the
date of Closing. Seller shall pay all unpaid ad valorem property taxes which are
due on the closing date.

         3.4. Effective Date. The effective time of this purchase shall be at
11:59 p.m. on the 30th day of September, 2007. Seller shall be entitled to all
production, royalties in the pipe accruing to Seller's account through that
date.

         4. Title and Inspections.

         4.1. File Inspection. Upon reasonable notice to Seller, Buyer may
inspect all of Seller's files related to land titles and leases as such files
may be maintained in the office of Star of Texas Energy Services, Inc. located
at 7804 Bronco Lane, Suite 100, Lago Vista, Texas.

         4.2. Quality of Title. Seller shall deliver to Buyer at Closing, such
right, title and interest it has in the "Property" (including undivided
interests in numerous tracts) subject to the Properties being held in escrow for
title and lien curative work.

         4.3. Title Examination. Buyer shall satisfy itself prior to closing, as
to the title Seller has in all tracts described in Exhibit "A". Seller will
convey without warranty of title, all its right, title and interest in and to
the tracts described in Exhibit "A" attached hereto. Seller owns no interest in
the surface estate of any tracts of land described in Exhibit "A" attached
hereto unless noted. Seller makes no warranty or representation as to the gross
or net number of mineral acres owned by it.

         4.4 Title Defect Notices. In the event Buyer discovers defects in
Seller's title, the Buyer shall notify the Seller in writing. Thereafter, Seller
shall have until the closing date to cure any defect in title, at Seller's sole
cost and expense. All title defects not discovered or brought to Seller's
attention prior to September 21st, 2007 at 5:00 o'clock p.m. shall be deemed
waived by the Buyer.

                                  Page 2 of 10
<PAGE>

         4.5 Files and Records. Within thirty (30) days after the Closing and at
the Buyer's expense, Seller shall furnish to the Buyer all records relating to
its title as may be in its possession or in the possession of the Seller's
counsel.

         4.6 Buyer's Due Diligence. The Buyer shall and does rely on its
independent evaluation of the Property and all its constituent elements,
including hydrocarbon reserve analysis, production history, well data, lease
analysis, quantity of acreage and the like. The Buyer is charged with knowledge
obtainable from county land records as well as state, federal and regulatory
agency records which pertain to the Property or any part thereof, including
producing wells. The Seller does not warrant or represent to the Buyer any of
the following: 1) the accuracy or completeness of files, contracts, any other
information relating to the "Property" (including their constituent tracts); 2)
the quantity of acreage; 3) the quantity of production nor; 4) the quality
and/or amount of reserves, if any; 5) the ability of the "Property" to produce
hydrocarbons from the "Property"; nor 6) any other material matter.

         5. Warranties.

         5.1. Seller's Warranties. Seller represents and warrants to, and agrees
with, the Buyer as follows:

         5.1.1. Organization. The Sellers were all formed under the laws of
Texas and are validly existing and with full power and authority to own its
property and to conduct its business.

         5.1.2. Litigation and Claims. Other than those disclosed, to sellers
knowledge there are no actions, suits, claims, investigations or legal,
governmental, administrative or arbitration proceedings pending or threatened
against the Seller, nor to Seller's knowledge, any basis for any such claims
that have not been disclosed.

         5.1.3. Material Changes. Notwithstanding current prosecutions of lien
claims, since September 1st, 2007, there have been no material adverse changes
in the interest Seller owns in the land and leases set forth on Exhibit "A"
attached hereto and that until the Closing, the Seller's ownership in such lands
and leases shall be conducted in the usual, regular and ordinary manner in all
material respects.

         5.1.4. Authority. Seller has full power and authority to act in this
transaction and has taken all requisite actions, to authorize it to carry on its
business as presently conducted, and has taken or will take all such actions to
authorize it to enter into this Contract and to perform its obligations
hereunder.

         5.1.5. Contracts. To the best of Seller's knowledge, there are no
contracts, agreements or obligations which in any way bind the Seller, relating
to the Property, except outstanding Oil, Gas and Mineral Leases, Participation
Agreements, Joint Operating Agreements, and Farm-out agreements, regarding the
properties described in Exhibit "A" as set forth hereunder.

                                  Page 3 of 10
<PAGE>

         5.1.6. Title and Escrow: Certain Properties to be Held in Trust. It has
been disclosed that certain of the properties to be assigned are encumbered by
liens under section 53 and/or section 56 of the Texas Property Code. Those
properties are not subject to assignment until such time as the lien is released
or the lien holder consents in writing. Any assignments made of properties
subject to a lien will be delivered to and held in trust by Robert R. Durbin and
not effective until delivery of the written conveyance document to Buyer. Mr.
Durbin will upon obtaining a release of a lien or written consent from a
lienholder then notify the parties hereto and obtain written instructions for
the delivery of the conveyance document for that property. Upon delivery, the
conveyance document will be effective from the date stated there on.

         5.2. Buyer's Warranties. Buyer represents and warrants that:

         5.2.1. Organization. The Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada, with full
corporate power and authority to own its property and to conduct its business.

         5.2.2. Authority. Buyer's execution, delivery and performance of this
Agreement has been duly authorized by all necessary corporate actions. A
secretarial certificate shall be prepared and submitted at closing, providing
satisfactory evidence of the necessary resolutions of the Buyer to approve the
execution of this Purchase and Sale Agreement as well as all requisite closing
and funding documents.

         5.2.3. Sophistication of the Buyer. Buyer is experienced and
knowledgeable in the oil and gas business and is aware of its risks. The Buyer
shall be afforded the opportunity to examine all relevant records of the Seller
prior to closing. The Buyers acknowledges and agrees that neither the Seller nor
any of its representatives or agents made representations or warranties, express
or implied, written or oral, on behalf of Seller, except as stated in this
Agreement. In entering into this Agreement, the Buyer acknowledges and affirms
it has and will rely exclusively upon its judgment, independent evaluation,
analysis and investigations with respect to the business, economic, legal, tax
and other consequences of the transaction contemplated by this Agreement.

         5.3 Representations and Warranties. The representations and warranties
of the Seller and the Buyer contained in this Agreement shall be true and
accurate as of the Closing Date and shall survive Closing.

         6. The Closing.

         6.1.1 Seller's Obligations at Closing. Seller shall deliver to Buyer an
Assignment bearing the effective date and time as set forth herein. The
Assignment shall apply to the "Property" set forth and described in Exhibit "A",
save and except any property unable to be sold due to perfected liens, which is
attached hereto for all pertinent purposes the same as if set forth at length
herein which shall be assigned pursuant to Section 5.1.6. Such conveyance shall
be subject to any and all existing Oil, Gas and Mineral Leases, Participation
Agreements, Joint Operating Agreements, and Farm-out agreements affecting the
subject Property, as well as any Oil, Gas and Mineral Leases executed by The
Seller during the term of this Purchase and Sale Agreement, as herein provided.

                                  Page 4 of 10
<PAGE>

The Seller shall notify all operators of the oil and gas leases which produce
royalty income of the change in ownership. Not withstanding the above, should
any property not be transferred on the closing date due to liens filed on the
property, those properties shall be transferred upon the release of those liens
as provided under section 5.1.6 above. Buyer shall pay all sales and use taxes
and related penalties and interest, if any, due as a result of this transaction.
Seller shall pay all transfer and documentary stamp fees. Buyer shall pay all
filing and recording fees required in connection with the filing and recording
of the Conveyance. Ad valorem taxes levied on the Properties for the Year 2007
shall be prorated to the Effective Date. Ad valorem taxes for the prorated
portion of 2007 prior to the Effective Date shall be paid by Seller to Buyer, at
closing or an adjustment to purchase price for the same shall be made at
closing. Ad valorem taxes for 2006 and all previous years shall be paid by
Seller prior to Closing and Seller shall protect, defend and hold Buyer harmless
from and against the payment of the same. Ad valorem taxes for the prorated
portion of 2007 attributable to Buyer and all subsequent years, shall be paid by
Buyer and Buyer shall protect, defend and hold Seller harmless from and against
the payment of same.

         6.1.2. Opinion of Seller's Counsel. Contemporaneously with execution of
this Agreement, Seller's counsel shall deliver an opinion letter certifying the
Seller has legal authority to execute the Purchase and Sale Agreement as well as
all reasonably necessary closing documents, including the Assignment.

         6.1.3. Seller's Further Assurances. After the closing, the Seller shall
execute and deliver or use reasonable efforts to cause to be executed and
delivered such other instruments of conveyance and transfer as may be reasonably
requested by the Buyer or any operator designated by Buyer.

         6.2.1. Buyer's Obligations at Closing. Buyer shall deliver to Seller
the total purchase price in "Common Shares" as described in Item 2 above. It
shall be the Buyer's obligation to obtain and execute Transfer Division Orders
from all operators of wells from which the Seller receives royalty income.

         6.2.2. Buyer's Board Resolution. Contemporaneously with the execution
of this Agreement, Buyer shall furnish to Seller a copy of its Board Resolution
together with its Secretarial Certificate evidencing Buyer's corporate authority
to enter into this Agreement as well as its authority to purchase the Assets, on
terms as herein set forth.

         6.2.3. Recording of Assignments and Deeds. The Buyer shall be
responsible for recording the Assignments and Deeds in the Official Public
Records of Real Property in counties in which the Properties are located Texas.
The Buyer shall furnish a copy of the recorded Assignments to Seller (at no
charge to the Seller) once the recorded documents are returned from the
respective county clerk's offices.

         6.2.4. Secretarial Certificate. The Buyer shall provide a Secretarial
Certificate to the closing agent which evidences the approval of the Buyer's
Directors and Shareholders, as the case may be, of the terms, conditions and
provisions of this Agreement as well as approving and granting authority to its
corporate officers to execute the requisite and necessary closing documents and
authorizing the funding of the purchase as contemplated herein. The parties
acknowledge that the principal of the Seller is on the Board of Directors and is
a shareholder of the Buyer and that he has recused himself from the deliberation
and approval by the Board of the Buyer. Further, the Buyer expressly waives any
conflict that might arise from this transaction as it related to such
relationship.

                                  Page 5 of 10
<PAGE>

         7. Termination/Default. Seller shall not terminate this Agreement
during the pendency of this Agreement unless one of the following occurs: Buyer
makes an assignment for the benefit of creditors; the filing by or against Buyer
of a petition to have Buyer adjudged a bankrupt, or a petition for
reorganization or arrangement under any law relating to bankruptcy; the
appointment of a trustee or receiver to take possession of substantially all of
Buyer's assets; or the attachment, execution or other judicial seizure of
substantially all of Buyer's assets without Buyer's prior written consent; the
trading of Buyer's stock being halted by order of the Securities and Exchange
Commission due to alleged trading irregularities, corruption or other
malfeasance by Buyer. The Seller shall have no further duty with regard to this
Agreement in the event Seller terminates this Agreement due to the occurrence of
any one of the preceding events.

         8. Confidentiality. The Seller and the Buyer shall hold the terms and
conditions of this Agreement as strictly confidential. The Seller shall not
disclose any information regarding this Agreement except on a need-to-know basis
to the Seller's shareholders and to the Seller's certified public accountants
and legal counsel. The Buyer shall not disclose any information regarding this
Agreement except as is necessary to comply with applicable United States of
America securities laws, including the Securities Exchange Act of 1934. Either
party may provide its consent, in writing, to the further disclosure of any of
the terms or provisions set forth herein.

         9. Indemnities.

         9.1 Seller's Indemnity: Seller hereby holds Buyer harmless and does
hereby indemnify Buyer from and against any and all claims under this agreement
and for commissions, finder's fees or other compensation, which may be due any
broker, agent or finder not set forth herein. Such indemnification includes
attorney's fees, court costs and all associated costs of litigation.

         9.2 Buyer's Indemnity: Buyer hereby holds Seller harmless and does
hereby indemnify Seller from and against any and all claims under this agreement
and for commissions, finder's fees or other compensation, which may be due any
broker, agent or finder not set forth herein. Such indemnification includes
attorney's fees, court costs and all associated costs of litigation.

         10. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of Seller and Buyer, and their respective heirs, personal
representatives, successors and assigns.

         11. Entire Agreement. This Agreement contains the entire agreement
between Buyer and Seller and supersedes all prior agreements, if any. No
additions or modifications of any term or provision shall be effective unless
set forth in writing, signed by both Buyer and Seller.

         12. Time of Essence. Time is of the essence of each and every term,
condition, obligation and provision hereof.

                                  Page 6 of 10
<PAGE>

         13. Attorney Fees. In the event of any actions, suit or other
proceedings to enforce this Agreement, the prevailing party shall be entitled to
recover from the other party all of the prevailing party's costs and expenses of
suit, including but not limited to reasonable attorney's fees incurred.

         14. Notices. All notices, statements, demands, requests, consents,
approvals, authorizations, offers, agreements, appointments or designations
required under this Agreement or by law by either party to the other shall be in
writing and shall be deemed sufficiently given and served upon the other party
if personally served or sent by registered or certified mail, postage prepaid to
the following addresses:

                  To Seller:        STAR OF TEXAS ENERGY SERVICES, INC.
                                    P.O.Box 4675
                                    Lago Vista, TX 78645
                                    (512) 267-6005
                                    (512) 267-4459 facsimile
                                    rl@staroftexasenergy.com

                                    And

                                    STAR OF TEXAS MINERALS RESOURCES LLC
                                         P.O.Box 4675
                                    Lago Vista, TX 78645
                                    (512) 267-6005
                                    (512) 267-4459 facsimile
                                    rl@staroftexasenergy.com

                  With copy to:     Robert R. Durbin
                                    Law Offices of Robert R. Durbin
                                    P.O. Box 4675
                                    Lago Vista, TX 78645
                                    (512) 422-2493
                                    (512) 267-0223 facsimile
                                    durbinlaw@earthlink.net

                                  Page 7 of 10

<PAGE>

                  To Buyer:         EXTERRA ENERGY INC.
                                    c/o Mr. Gordon McDougall, CEO
                                    115 West 7th Street, Suite #1415
                                    Forth Worth, Texas 76012

                  With copy to:     Mark Robertson
                                    ROBERTSON & WILLIAMS
                                    3033 N.W. 63rd Street, Suite 200
                                    Oklahoma City, Okahoma 733116-3607
                                    Telephone: (405) 848-1944
                                    Fax: (405) 843-6707
                                    Mark@robertsonwilliams.com

The parties may designate any other address(es) for the service of notice by
furnishing same in accordance with this paragraph.

         15. Invalid Provisions. If any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, unenforceable or illegal
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement, and this Agreement shall be construed as
if such invalid, illegal or unenforceable provision had never been set forth.

         16. Further Assurances. Each party agrees to execute such other and
further instructions as may be necessary or proper in order to consummate the
transaction contemplated by this Agreement.

         17. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas.

         18. Venue. The venue of any action brought by either party in regard to
this Agreement or arising out of the terms and conditions set forth herein shall
be exclusively held in either Tarrant County, Texas for state court actions. In
the event federal court actions are initiated, venue shall lie in the federal
district court for the Northern District of Texas.

         19. Acceptance. If this Agreement is not executed by Buyer and Seller,
in multiple originals, on or before 6:00 p.m. CDT, effective on September 29th,
2007, this Agreement shall be null and void and neither party shall have any
further obligations hereunder.

         20. Effectiveness. This Agreement shall become effective when executed
by Seller and Buyer and original executed copies of this Agreement are exchanged
by the parties.

         21. No Partnership Created. It is not the purpose or intention of this
Agreement to create (nor shall it be construed as creating) a joint venture,
partnership or any kind or type of association and the parties hereto are not
authorized to act as agent or principal for each other with respect to any
matter related hereto.

                                  Page 8 of 10
<PAGE>

         22. Counterparts. This Agreement may be executed in multiple
counterparts, and each counterpart shall be considered as if it were an
original. The parties agree that execution of this Agreement by a party and the
delivery of such party's signature by facsimile transmission to the other party
shall be fully effective as the original signature of such party, and the other
party may fully rely on the received facsimile signature of the signing party to
the fullest extent as if it were the original copy thereof. Each signing party
covenants and agrees to promptly deliver to the other party an original
counterpart copy of such signing party's signature following transmission
thereof by facsimile.

            [the remainder of this page is left blank intentionally]

                                  Page 9 of 10

<PAGE>

         Dated as of  October 17, 2007.

SELLER:

STAR OF TEXAS ENERGY SERVICES, INC.

And

STAR OF TEXAS MINERALS RESOURCES LLC

By:     /s/ Ray Ledesma
        -------------------------------
         Ray Ledesma
         President & CEO

BUYER:

EXTERRA ENERGY INC.

By:   /s/ Gordon McDougall
      ---------------------------------
       Gordon McDougall
       President

                                 Page 10 of 10

<PAGE>

<TABLE>
<CAPTION>
                                                            EXHIBIT "A"

------------------------------------------------------------------------------------------------------------------------------------

A) LIST OF ASSETS - STAR OF TEXAS ENERGY SERVICES, INC.
------------------------------------------------------------------------------------------------------------------------------------

                                                                                 Gross
Property                             Zone           Operator          Status     Acres        County            WI%            NRI%
--------                             ----           --------          ------     -----        ------            ---            ----
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------
<S>                              <C>                <C>             <C>            <C>         <C>            <C>
Garrett #1                       Bend Cong.        Star of TX      Producing                   Wise            100%             70%
272 acres (Shallow rights)
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Wright-Star Unit 1, Well #1      Barnett Shale     Star of TX      Producing       100         Wise     10.7851748%      7.9810303%
     100 acres out of a
     200 acre Unit
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Wright-Star Unit 1, Well #2      Barnett Shale     Star of TX      Producing       100         Wise     16.3849923%     12.1248943%
     100 acres out of a
     200 acre Unit
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Oates-Star #3H                   Barnett Shale     Star of TX      Producing     127.5         Wise     10.5772964%      7.5098804%
     127.5 acres out of a
     207.5 ac lease
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Davis #1H                        Barnett Shale     Star of TX      Producing        80        Denton     6.8697529%      5.1523147%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Shepherd-Star #1H                Barnett Shale     Star of TX       Producing      145         Wise     13.5772963%      9.9114162%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Brammer #1                       Barnett Shale     Star of TX      To be PxA                   Wise     15.0713179%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Valley View #2                   Barnett Shale     Star of TX      To be PxA                  Denton       40.9556%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Hodges #1H                       Barnett Shale     Star of TX      Producing     97.49         Wise        18.1999%     13.3259664%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Naugle #1H                       Barnett Shale     Star of TX       Shut-in      75.67         Wise     13.5529843%     10.0292084%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Lucky Lady #1H                   Barnett Shale     Star of TX      Producing       118         Wise      5.3926779%      3.9905816%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Aaron-Star #1H                   Barnett Shale     Star of TX      Producing       100         Wise       4.380728%      2.8670318%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Bullard #1H                      Barnett Shale     Star of TX      Producing      66.7         Wise     10.4691528%       7.747173%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

RSK-Star #5                      Barnett Shale     Star of TX      Producing        20         Wise     5.97205593%      4.2401621%
     20 acres out of a
     267 acre lease
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

RSK-Star #6                      Barnett Shale     Star of TX    Ready to Frac      20         Wise     16.8029412%     12.4341765%
     20 acres out of a
     267 acre lease
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

RSK-Star Vaughn Unit, Well #7    Barnett Shale     Star of TX      Producing    28.679         Wise      6.6000003%      4.8840002%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

Jennings #1H                     Barnett Shale     Star of TX      To be PxA                   Wise      28.767059%
------------------------------------------------ --------------- ---------------------- ---------------------------- ---------------

<PAGE>

Malcolm-Star #1H                     Barnett Shale     Star of TX      Producing        212    Wise     45.060366%  33.6731609%
---------------------------------------------------- --------------- -----------------------------------------------------------

Durant #1H                           Barnett Shale     Star of TX      Producing        110    Hood         9.889%     7.51564%
---------------------------------------------------- --------------- -----------------------------------------------------------

Robertson Unit #1                    Barnett Shale     Star of TX      Producing        212    Hood        6.3302%   4.9626936%
---------------------------------------------------- --------------- -----------------------------------------------------------

Garrett-Star #1H                     Barnett Shale     Star of TX    Ready to Frac      272    Wise    30.8163723%  23.4204429%
---------------------------------------------------- --------------- -----------------------------------------------------------

Pritchard Unit Well #1               Barnett Shale     Star of TX    Ready to Frac    100.5   Parker    19.504744%  14.4335106%
---------------------------------------------------- --------------- -----------------------------------------------------------

Mooney #1H                           Barnett Shale     Star of TX    Ready to Frac    53.57   Parker    17.064744%  12.6279106%
---------------------------------------------------- --------------- -----------------------------------------------------------

Boecker-Star #1H                     Barnett Shale     Star of TX    Ready to Frac    149.5   Parker     73.50477%  54.3935298%
---------------------------------------------------- --------------- -----------------------------------------------------------

Cooper B #1H                         Barnett Shale     Star of TX    Ready to Frac     57.8   Parker        71.60%      52.984%
---------------------------------------------------- --------------- -----------------------------------------------------------

Wilson A #1H                         Barnett Shale     Star of TX    Ready to Frac      160    Jack    56.2729562%  42.2047172%
---------------------------------------------------- --------------- -----------------------------------------------------------

McPherson B #1H                      Barnett Shale     Star of TX    Ready to Frac    115.3    Hill            75%       56.25%
---------------------------------------------------- --------------- -----------------------------------------------------------

Wilson B #1H                         Barnett Shale     Star of TX     Surf csg set      351    Jack            65%       48.75%
---------------------------------------------------- --------------- -----------------------------------------------------------

Wolfenburger #1H                     Barnett Shale     Star of TX     Wait on rig       163   Parker           65%       48.75%
---------------------------------------------------- --------------- -----------------------------------------------------------

Crowley Lease                        Barnett Shale     Star of TX      Drillsite         20   Denton          100%       74.47%
     20 acres out of a
     100 acre lease
---------------------------------------------------- --------------- -----------------------------------------------------------

3978.96 ac Odom Leases & Long
Creek Lease:                                                                         3978.96   Parker
Carried 2.625% WI for drilling &                                                              & Hood
  completion of all wells
  Odom Leases - Stevens &
  Slocum Ranch
   2573.33 ac Long Creek Land
   Holdings Lease
   - Martin Ranch 1405.63 ac
     Current wells:
    1) Odom Martin #1H               Barnett Shale     SM (CRZ0)       Producing                            2.625%       1.995%
    2) Odom Martin #2H               Barnett Shale     SM (CRZ0)       Producing                            2.625%       1.995%
    3) Odom Slocum #1H               Barnett Shale     SM (CRZ0)       Producing                            2.625%       1.995%
    4) Odom Stevens #1H              Barnett Shale     SM (CRZ0)       Producing                            2.625%       1.995%
    5) Odom Stevens #2H              Barnett Shale     SM (CRZ0)       Producing                            2.625%       1.995%
    6) Stevens Martin #1H            Barnett Shale     SM (CRZ0)       Producing                            2.625%       1.995%
    7) Martin Hyponex 1H Unit
      (132.18 ac add'l)              Barnett Shale     SM (CRZ0)       Producing     132.18   Parker       1.3125%      0.9975%
---------------------------------------------------- --------------- -----------------------------------------------------------

Robinson #1                          Barnett Shale        CRZO         Producing      179.2    Hood         2.625%       1.995%
---------------------------------------------------- --------------- -----------------------------------------------------------

Walker Waggoner #3                   Barnett Shale        CRZO         Producing        152    Wise        1.6875%   1.2909375%
---------------------------------------------------- --------------- -----------------------------------------------------------

Acrey #1                             Barnett Shale         WW          Producing     67.921  Tarrant         0.80%     0.59576%
---------------------------------------------------- --------------- -----------------------------------------------------------

City of Aurora #1                    Barnett Shale         WW          Producing     41.202    Wise           0.1%   0.0801626%
---------------------------------------------------- --------------- -----------------------------------------------------------

<PAGE>

Belew-Star #1                    Barnett Shale         WW          Producing             40         Wise            0.1%      0.071%
40 acres out of an
80 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Belew-Star #2                    Barnett Shale         WW          Producing             40         Wise            0.1%      0.071%
40 acres out of an
80 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Bradford #1                      Barnett Shale         WW          Producing             40        Denton           0.1%      0.075%
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Brewer #1                        Barnett Shale         WW          Producing         41.324       Tarrant           0.1%      0.075%
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Buchanan #1                      Barnett Shale         WW          Producing          40.14        Denton           0.7%    0.52675%
40.14 acres out of a
255.44 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Buchanan #2                      Barnett Shale         WW          Producing          40.36        Denton           0.7%    0.52675%
40.36 acres out of a
255.44 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Buchanan #3                      Barnett Shale         WW          Producing           40.5        Denton           0.8%      0.602%
40.5 acres out of a
255.44 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Buchanan #4                      Barnett Shale         WW          Producing           43.4        Denton         0.225%  0.1693125%
43.4 acres out of a
255.44 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Buchanan #5                      Barnett Shale         WW          Producing           48.2        Denton         0.225%  0.1693125%
48.2 acres out of a
255.44 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Buchanan #6                      Barnett Shale         WW          Producing           40.1        Denton         0.225%  0.1693125%
40.1 acres out of a
255.44 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Cates-Star #1                    Barnett Shale         WW          Producing             40         Wise            0.1%      0.071%
40 acres out of a
69.95 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Cates-Star #2                    Barnett Shale         WW          Producing          29.95         Wise            0.1%      0.071%
29.95 acres out of a
69.95 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Crowley #1                       Barnett Shale         WW          Producing             40        Denton           0.8%    0.59576%
40 acres out of a
100 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Crowley #2                       Barnett Shale         WW          Producing             40       Tarrant           0.1%    0.07447%
40 acres out of a
100 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Fleischaker #1                   Barnett Shale         WW          Producing             40        Denton           0.1%      0.075%
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

Gebert #1                        Barnett Shale         WW          Producing             40        Denton           0.8%   0.585764%
40 acres out of a
155.7 ac lease
------------------------------------------------ --------------- --------------- ----------- ---------------------------------------

<PAGE>

Gebert #2                         Barnett Shale         WW          Producing             40        Denton        0 8%   0.585764%
40 acres out of a
155.7 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Gebert #3                         Barnett Shale         WW          Producing             40        Denton        0.8%   0.585764%
40 acres out of a
155.7 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Gebert #4                         Barnett Shale         WW          Producing           35.7        Denton        0.8%   0.585764%
35.7 acres out of a
155.7 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Kendall-Stephens #1               Barnett Shale         WW          Producing          42.11        Denton        0.1%     0.0745%
42.11 acres out of a
146.23 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Kendall-Stephens #3               Barnett Shale         WW          Producing          40.02       Tarrant      0.725%   0.540125%
40.02 acres out of a
146.23 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Kendall-Stephens #4               Barnett Shale         WW          Producing         24.083       Tarrant        0.1%     0.0745%
24.083 acres out of a
146.23 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Nelson-Hyde #1                    Barnett Shale         WW          Producing             40        Denton      0.725%    0.54375%
40 acres out of a
60 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Nelson-Hyde #2                    Barnett Shale         WW          Producing             20        Denton      0.725%    0.54375%
20 acres out of a
60 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Oates-Star #1                     Barnett Shale         WW          Producing             40         Wise         0.1%      0.071%
40 acres out of a
207.5 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Oates-Star #2                     Barnett Shale         WW          Producing             40         Wise         0.1%      0.074%
40 acres out of a
207.5 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

RSK #1                            Barnett Shale         WW          Producing             40         Wise        0.75%     0.5325%
40 acres out of a
267 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

RSK #2                            Barnett Shale         WW          Producing             40         Wise        0.75%     0.5325%
40 acres out of a
267 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

RSK #3                            Barnett Shale         WW          Producing             40         Wise         0.1%      0.071%
40 acres out of a
267 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

RSK #4                            Barnett Shale         WW          Producing             40         Wise         0.1%      0.071%
40 acres out of a
267 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Sotel #1                          Barnett Shale         WW          Producing         44.541       Tarrant        0.1%  0.0743031%
------------------------------------------------- --------------- --------------- ----------- -------------------------------------

Wiggins #1                        Barnett Shale         WW          Producing          40.12       Tarrant       0.73%    0.53513%
40.12 acres out of a
77.921 ac lease
------------------------------------------------- --------------- --------------- ----------- -------------------------------------
<PAGE>

Wiggins #2                         Barnett Shale         WW          Producing      37.801       Tarrant            0.1%    0.07447%
37.801 acres out of a
77.921 ac lease
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Yorlum #1                          Barnett Shale         WW          Producing        41.9        Denton           0.73%     0.5402%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Yorlum #2                          Barnett Shale         WW          Producing      45.199        Denton            0.1%      0.074%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Summers #1                         Barnett Shale         TM          Producing      88.445       Tarrant            1.0%       0.75%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Baker #1                           Barnett Shale         TM          Producing      125.06        Denton            1.0%       0.75%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Strain 1H                          Barnett Shale         AE          Producing      131.23        Parker            0.5%      0.375%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Crawford Edwards 1H                Barnett Shale         AE          Producing      220.17        Parker            0.5%      0.375%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Floyd 1H                           Barnett Shale         AE          Producing       226.0        Parker            0.5%      0.375%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Dalton Miller #1H                  Barnett Shale         AE          Producing       226.0        Parker            0.5%      0.375%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Salmon & Zimmerer leases           Barnett Shale         AE          Drillsite         133        Denton            1.0%       0.74%
     Carried WI during
     drilling & completion
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

JMK #1                             U. Vicksburg          MP          Producing                    Starr                      1% ORRI
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Panther-Sunoco Barnett
     Shale Pipeline - 1.625 Units                     Panther         Tested                      Bosque          1.625%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Vehicles:
     Hummer H2 2006 -
     VIN 5GRGN23U06H100764
     Ford F-150 2001 -
     VIN 1FTRW08L71KE66129
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Office furniture - Lago Vista &
     Woodlands Offices
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

------------------------------------------------------------------------------------------- ----------------------------------------

B) LIST OF ASSETS - STAR OF TEXAS MINERAL RESOURCES, LLC
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Property                               Zone           Operator         Status       Acres         County             WI%        NRI%
--------                               ----           --------         ------       ------        ------             ---        ----
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

   14 Mineral Leases               Barnett Shale     Star of TX      Undrilled    7229.202       que & Han    11.917957%  9.2960064%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

   Young, Miles, etal Lease        Barnett Shale     Star of TX      Undrilled      107.41         Wise        23.35910%  18.220098%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

   M. Waller Lease                 Barnett Shale     Star of TX      Undrilled       48.08        Parker       23.35910%  18.220098%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Mooney #1H - Overriding Royalty    Barnett Shale     Star of TX    Ready to Frac     53.57        Parker                    0.46718%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

Pritchard #1H - Overriding Royalty Barnett Shale     Star of TX    Ready to Frac     100.5        Parker                       0.64%
-------------------------------------------------- --------------- ------------------------ ----------------------------------------

<PAGE>

Boecker-Star #1H - Overriding Royalty     Barnett Shale    CRZO     Ready to Frac   149.5     Parker                     0.23359%
------------------------------------------------------------------------------------------------------------------ ---------------

4H Ranch #1H - API# 42-251-30633          Barnett Shale    CRZO       Producing    181.17    Johnson         1.5%        1.10988%
------------------------------------------------------------------------------------------------------------------ ---------------

Haller Unit #1H - API# 42-217-30419       Barnett Shale    CRZO       Producing    290.56      Hill           N/A        2.50212%
------------------------------------------------------------------------------------------------------------------ ---------------

------------------------------------------------------------------------------------------------------------------ ---------------

C) LIST OF ASSETS - BARNETT
   HOLDING, LLC
------------------------------------------------------------------------------------------------------------------ ---------------

Property                                                 Operator       Status      Acres     County          WI%            NRI%
--------                                                 --------       ------      -----     ------          ---            ----
------------------------------------------------------------------------------------------------------------------ ---------------

Panther-Sunoco Barnett Shale
    Pipeline - 3.375 Units                                Panther       Tested        N/A     Bosque       3.375%
------------------------------------------------------------------------------------------------------------------ ---------------

------------------------------------------------------------------------------------------------------------------ ---------------

D) LIST OF ASSETS - HYDRO-FX, INC.
------------------------------------------------------------------------------------------------------------------ ---------------

Property                                                 Operator       Status      Acres     County          WI%            NRI%
--------                                                 --------       ------      -----     ------          ---            ----
------------------------------------------------------------------------------------------------------------------ ---------------

Hydro-FX #1 Commercial
   Disposal Well                                          Hydro-FX     Deepening      41.7      Wise        5.570%
------------------------------------------------------------------------------------------------------------------ ---------------
</TABLE><PAGE>

EXHIBIT 10.34

                            ASSET PURCHASE AGREEMENT
                            ------------------------

THIS ASSET PURCHASE AGREEMENT (the "Agreement"), made and entered into as of
this 17 day of October, 2007, by and between the Buyer, as defined below, and
the Seller, as defined below.

As used in this Agreement, the term "Buyer" includes ERF Wireless, Inc., a
Nevada corporation ("Parent"), and ERF Network Operations, Inc., a Texas
corporation and wholly-owned subsidiary of Parent, ("Subsidiary").

As used in this Agreement, the term "Seller" means Momentum Online Computer
Services, Inc. and Momentum Online Internet Services, Inc. ("Momentum Online"),
Texas corporations headquartered in Blanco, Texas, and Robert C. McClung,
jointly addressed as the Seller.

                              W I T N E S S E T H:

WHEREAS, Seller presently operates a business engaged in providing a
comprehensive full range of Internet services including Internet Access,
dial-in, ISDN, wireless, computer sales and repair and networking solutions to
commercial businesses and residential customers (the "Business"); and

WHEREAS, Seller desires to sell substantially all of the assets and contracts of
the Business to Buyer, and Buyer desires to purchase such assets and contracts
from Seller, on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, Buyer and Seller, in consideration of the mutual promises
hereinafter set forth, do hereby promise, and agree as follows:

ARTICLE ONE: ASSETS TO BE PURCHASED
-----------------------------------

1.1 SUBJECT ASSETS. Upon the terms and subject to the conditions set forth in
this Agreement, Seller hereby sells to Subsidiary and Subsidiary hereby
purchases from Seller, at the Closing, all of Seller's right, title, and
interest in substantially all of the assets associated with the Business,
including the following:

                  Substantially all of the assets associated with the Business,
                  including all cash, cash equivalents, accounts (including,
                  without limitation, any accounts, deposit accounts, inventory,
                  equipment, vehicles (except a certain Toyota vehicle used by
                  Robert McClung) goods, documents, instruments (including,
                  without limitation, promissory notes), contract rights
                  including ISP Subscriber Agreements, general intangibles,
                  chattel paper, supporting obligations, investment property
                  (including, without limitation, all equity interests owned by
                  Momentum Online), letter-of-credit rights, trademarks,
                  trademark applications, trade styles, patents, patent
                  applications, copyrights, copyright applications and other
                  intellectual property in which Seller now has or hereafter may
                  be acquired by Momentum Online any right, title or interest,
                  all proceeds and products thereof (including, without
                  limitation, proceeds of insurance), all documents, files and
                  records containing technical support, all additions,
                  accessions and substitutions thereto or therefore and other
                  information pertaining to the operation of the business
                  (collectively, "Purchased Assets").

Documentation that will be provided pursuant to the purchase will include copies
of the following books, records, manuals and other materials in any tangible
form to the extent relating to the Business and/or the Subject Assets: records
relating to customers that are parties to any contracts, records relating to
vendors, and all other books, records, files, correspondence, documents and
information owned by Seller relating to the Business that are currently in the
possession of the employees of the Business, however maintained or stored
(collectively, the "Records"), it being understood that the Seller may cause to
be deleted confidential information that does not relate to the Subject Assets
or the Business.

1.2 EXCLUDED ASSETS. The Subject Assets shall not include the following (herein
referred to as the "Excluded Assets"):

                                       1
<PAGE>

                  all corporate minute books, stock transfer books and other
                  documents relating to the organization, maintenance and
                  existence of Seller as a corporation ("Corporate Documents");

                  all rights of Seller pursuant to this Agreement, including the
                  consideration paid to Seller pursuant to this Agreement;

                  all originals of personnel records and other records that
                  Seller is required by applicable law to retain in its
                  possession;

                  all tax refunds which Seller is due;

                  all capital stock in Seller; and

                  any other item specifically listed in Schedule 1.2.

1.3 PURCHASE PRICE; PAYMENT OF PURCHASE PRICE. In addition to the Assumed
Liabilities described below, the aggregate consideration for the Subject Assets
(the "Purchase Price") shall be the amount equal to: $1,200,000. The Purchase
Price shall be subject to adjustment as set forth in Section 1.7 below as so
adjusted.

1.4 PAYMENT TERMS. The Purchase Price shall be payable at the Closing date as
follows:

     1.   $200,000 cash,
     2.   $100,000 (free-trading) shares (associated with a non-compete
          provision to be set forth in Employment Agreement),
     3.   $650,000 of Restricted Stock of the Parent (with the number of shares
          of Restricted Stock determined by using a stock price of the 10-day
          trailing average prior to closing); and
     4.   the execution of a $250,000 Secured Promissory Note ("Note") (the
          amount subject to any adjustments from section 1.7 herein) from Parent
          having the following terms and other terms that may be mutually agreed
          to by the parties: (i) the annual rate of interest on the unpaid
          portion shall be 7.5% per annum; (ii) payments of accrued interest and
          principal shall be made over twelve (12) calendar quarters, with the
          quarterly payments being in the amount of $23,475.78 and the first
          payment beginning 90 days after Closing. (iii) Purchaser may prepay
          the Note at any time without penalty; (iv) Purchaser and Seller shall
          enter into a Security Agreement securing the faithful payment of the
          Note that will be executed simultaneously with the execution of the
          Note; and (v) in the event of default, Seller may take actions
          necessary to protect its interest, as provided in the Note and
          Security Agreement. The Purchaser may elect to make the quarterly
          payments in cash or Freely Tradable common stock of the Parent. Should
          the Purchaser elect to pay the quarterly payments in Freely Tradable
          common stock of the Parent, the Parent will execute a Guaranty
          Agreement that shall guarantee the Seller the underlying value of the
          common stock as of the quarterly payment due date for a period of 60
          days from the payment date. Freely Tradable common stock shall mean
          fully registered securities which are not subject to any contractual,
          regulatory or other legal restrictions on their transfer, are free and
          clear of all liens and encumbrances and are freely tradable to members
          of the general public. The quarterly note payments shall be subject to
          offset to address any indemnification claims which may arise. Parent
          agrees to grant Seller piggy-back registration rights to all
          Restricted Stock issued to Seller as part of the Definitive Agreements
          and will agree to provide its transfer agent with an opinion letter
          and instructions to remove the restricted legend from Seller's shares
          in accordance with SEC Rule 144.

In accordance with the Pledge and Security Agreement in Exhibit 1.4 to this
Agreement, Parent agrees to guarantee the faithful payment of the Purchase Price
by pledging Buyer the common stock of Subsidiary back to Seller through the date
that the Purchase Price (including all components and payment terms of the
Purchase Price) has been paid in full.

1.5 ASSUMED LIABILITIES; NO OTHER ASSUMPTION OF LIABILITIES. As partial
consideration for the Subject Assets, Subsidiary shall deliver to Seller at
Closing an Assignment and Assumption Agreement pursuant to which Subsidiary
shall assume and pay, perform or discharge, as appropriate, the liabilities and

                                       2
<PAGE>

obligations of Seller (the "Assumed Liabilities") (i) arising in connection with
the operation of the Business by the Subsidiary after the Closing date, (ii)
arising after the Closing date in connection with the performance by the
Subsidiary of the contracts and agreements associated with the Business assigned
to Subsidiary, including the ISP Subscriber Contracts, office lease and
utilities in effect pertaining to the Business, equipment and tower leases, and
the Equipment Purchase, Monitoring and Maintenance Agreements in existence with
customers, (iii) accounts payable outstanding or accrued as of the closing date
as limited and subject to the adjustments set forth in section 1.7 - Adjustments
to Purchase Price, (iv) the $122,127.59 Blanco National Bank note # 11073
(3-year amortization), and (v) the Century Van and truck note(s) for $11,923.
Subsidiary shall not assume or be responsible for any such liabilities or
obligations that arise from breaches thereof or defaults by Seller prior to the
Closing, all of which liabilities and obligations shall constitute "Specified
Retained Liabilities" and all such liabilities shall either be retained by
Seller or be fully paid prior to Closing. With respect to the Blanco National
Bank note # 11073, Buyer and Seller will make all reasonable efforts to transfer
the note obligations to the Subsidiary, and/or otherwise remove any personal
guarantee obligations from Robert C. McClung. In the event such transfer and/or
removal of obligation does not take place within ninety (90) days after the
closing date, Parent agrees to retire the note or otherwise remove Robert C.
McClung and Momentum Online from any obligation associated with the note.

Except for the Assumed Liabilities, Buyer shall not assume or be obligated
under, or become liable for, any debt, liability, contract or obligation
whatsoever of Seller or the Business, and Seller shall be responsible for the
payment or performance and full discharge of all debts, liabilities, contracts
and obligations whatsoever of Seller, including those of the Business accruing
prior to the Closing and the Specified Retained Liabilities. In particular (and
by way only of example and not by way of limitation), Seller shall be and remain
solely responsible for, and shall timely pay or perform and discharge, all
debts, liabilities, contracts and obligations with respect to the Business other
than the Assumed Liabilities (collectively, together with those liabilities and
obligations described in Section 2.2 as constituting the same, "Specified
Retained Liabilities"): (i) ) any tax liability or obligation relating to
transactions or periods prior to and including the Closing Date (but excluding
any sales, use, transfer or other tax obligation resulting from the transactions
contemplated by this Agreement, which Subsidiary hereby agrees to be responsible
for); (ii) any liability or obligation to Seller's employees for salaries and
wages whether relating to the termination of their employment or otherwise
arising, relating to periods prior to and including the Closing,; and (iii) any
legal claim or any other liability or obligation whatsoever incurred by Seller
relating to the Business for periods or occurrences prior to and including the
Closing Date, other than those specified in Section 1.5 above as included in
Assumed Liabilities.

1.6 ALLOCATION OF PURCHASE PRICE. Seller and Buyer shall cooperate to determine
(in accordance with applicable U.S. Treasury regulations promulgated under
Section 1060 of the U.S. Internal Revenue Code, as amended, the allocation of
the Purchase Price and the liabilities of Seller (plus other relevant items)
among the Subject Assets as of the Closing Date. Such allocation shall be made
in a manner consistent with the fair market value of such assets. Each of the
parties will file all tax returns and information reports (including the IRS
Form 8594 and any disclosures that are required under Section 1060 of the
Internal Revenue Code) in a manner consistent with such allocation.

1.7 ADJUSTMENTS TO PURCHASE PRICE. The Purchase Price shall be subject to the
following additional credits and adjustments (either as additions or reductions
to the Purchase Price, as the case may be), which shall be reflected in the
closing statements to be executed and delivered by Buyer and Seller as
hereinafter provided: (a) Cash plus accounts receivable plus any prepaid
expenses, (including but not limited to taxes and other similar items directly
related to the Assumed Liabilities which shall be prorated at Closing) less (b)
trade accounts payable. The amount of this adjustment shall be identified as
Purchase Price Adjustment (PPA). At the end of the ninety-day period immediately
after Closing, Purchaser and Seller shall review the PPA and revise it as
follows:

     >>   Reduce or increase the PPA as the case may be by an amount equal to
          any customer accounts receivable purchased at Closing that are deemed
          uncollectible or understated;
     >>   Decrease or increase the PPA as the case may be by an amount equal to
          any increase in the accounts payable assumed by Purchaser at Closing
          which resulted from such accounts payable having been
          understated-yet-due by Seller as of the Closing date or overstated.

Purchaser and Seller shall review this revision and upon mutual agreement, the
amount of the Secured Promissory Note described in the next section may be
increased or decreased, and the subsequent monthly note payments shall be made
based on this revised note amount.

                                       3
<PAGE>

ARTICLE TWO: CLOSING
--------------------

2.1 TIME AND PLACE OF CLOSING; CLOSING DELIVERIES. The closing of the purchase
and sale contemplated herein (the "Closing") shall take place at 10:00 a.m., on
October 17, 2007 at the offices of Parent, located at League City, Texas, or
such time and date as the parties may agree upon. The date of Closing is
hereinafter referred to as the "Closing Date."

At the Closing, Seller shall deliver to Buyer according to Buyer's instructions:

(a) by wire transfer or certified bank check(s), an amount equal to $200,000, in
U.S. Dollars,

(b) $100,000 (free-trading) shares of Parent (associated with a non-compete
provision to be set forth in Employment Agreement,

(c) $650,000 of Restricted Stock of the Parent, and

(d) an executed, Secured $250,000 Promissory Note and Pledge and Security
Agreement; and

(e) the documents, certificates, agreements and instruments described in Section
2.2. Buyer shall deliver to Seller the documents, certificates, agreements and
instruments described in Sections 2.2 and 2.3.

2.2 CONDITIONS PRECEDENT TO BUYER'S OBLIGATION. The obligation of Buyer to
consummate the transactions contemplated herein is subject to the satisfaction
(or, in Buyer's sole discretion, written waiver thereof) as of the Closing of
the following conditions:

The representations and warranties of Seller made in this Agreement shall be
true and correct in all material respects at Closing.

No demand, action, suit, audit, investigation, review, claim or other legal or
administrative proceeding (collectively, a "Proceeding") by any nation or
government, any state or other political subdivision thereof, including any
governmental agency, department, commission, or instrumentality of the United
States, any State of the United States or any political subdivision thereof or,
any self-regulatory agency or authority (collectively, "Governmental Authority")
or other person shall have been instituted or threatened against Seller which
seeks to enjoin, restrain or prohibit, or which questions the validity or
legality of, the transactions contemplated hereby or which otherwise seeks to
affect or could reasonably be expected to affect the transactions contemplated
hereby.

Seller's shareholders shall have approved this Agreement and the transactions
contemplated thereby.

Seller shall have performed in all material respects its obligations described
in Section 5.1.

Seller shall have delivered audited financial statements from an accounting firm
acceptable to Buyer at Closing that includes financial years 2005, 2006 and the
applicable year-to-date results for 2007.

Seller shall have executed and delivered, subject to Closing, a 3 year
non-competition agreement between Parent and Bobby "Mack" McClung incorporating
the provisions of Section 6.4.1 (c) of this Agreement.

Buyer shall have received from Seller all of the following:

A bill of sale including a complete listing of assets in the form of Exhibit 1,
in form and substance satisfactory to Buyer, duly executed by Seller
(collectively, the "Bill of Sale"), conveying to Buyer the Subject Assets free
and clear of all pledges, security interests, or other similar liens granted by
Seller and free and clear of all other adverse claims of any kind whatsoever
known by Seller (collectively, "Encumbrances"), except (i) encumbrances for
taxes, the payment of which is not delinquent, (ii) materialmen's,
warehousemen's, mechanic's, lender's, lessor's, or other Encumbrances arising by
operation of law in the ordinary course of business for sums not due and which
do not materially detract from the value of such assets or properties or
materially impair the operation of the Business, and (iii) statutory
Encumbrances incurred in the ordinary course of business in connection with
worker's compensation, unemployment insurance or other forms of governmental
insurance or benefits (collectively "Permitted Encumbrances") ;

                                       4
<PAGE>

An assignment and assumption agreement in the form of Exhibit 4 (the "Assignment
and Assumption Agreement"), duly executed by Seller;

Trademark, copyright and other intellectual property assignment documents
reasonably requested by Buyer to fully effectuate use or transfer of the
intellectual property within the Subject Assets, each duly executed by Seller;

Actual or constructive physical possession of all of the Subject Assets and the
Records; A certificate of the Secretary of Seller certifying, as complete and
accurate as of the Closing, attached copies of the governing documents of
Seller, certifying and attaching all requisite resolutions or actions of
Seller's board of directors and shareholders approving the execution and
delivery of this Agreement and the consummation of the contemplated transactions
and the change of name contemplated by Section 1.1 and certifying to the
incumbency and signatures of the officers of Seller executing this Agreement and
any other document relating to the contemplated transactions and accompanied by
the requisite documents for amending the relevant governing documents of Seller
required to effect such change of name in form sufficient for filing with the
appropriate Governmental Body; and

A legal opinion from Seller's counsel that (1) Seller is bound by this Agreement
and (2) subject to Closing, the Bill of Sale and Assignment and Assumption
Agreement are in a form legally sufficient to convey to Buyer the Subject Assets
free and clear of all Encumbrances, except Permitted Encumbrances.

2.3 CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS. The obligation of Seller to
consummate the transactions contemplated hereby is subject to satisfaction as of
the Closing of the following conditions (or, in the sole discretion of Seller,
written waiver thereof):

The representations and warranties of Buyer made in this Agreement shall be true
and correct in all material respects at Closing.

No proceeding by any Governmental Authority or other person shall have been
instituted or threatened against Buyer which seeks to enjoin, restrain or
prohibit, or which questions the validity or legality of, the transactions
contemplated hereby or which otherwise seeks to affect or could reasonably be
expected to affect the transactions contemplated hereby.

Buyer's operations have been in compliance with all applicable laws and
regulations that could have a material adverse impact on the Business.

Buyer shall have performed in all material respects its obligations described in
Section 5.1 and elsewhere in this Agreement.

Subsidiary shall have entered, subject to Closing, a 36 month written Employment
Agreement with Bobby "Mack" McClung to serve as the Chairman and CEO of
Subsidiary, providing for a minimum of $12,500 per month salary plus benefits
and performance incentives, plus an auto allowance of $746.00 per month, as well
as directors and officers insurance coverage ("D&O Coverage") that is equal to
D&O Coverage provided to officers and directors of Parent. The Employment
Agreement shall include, as partial consideration of the assets purchased, a
3-year non-competition agreement.

Seller shall have received from Buyer all of the following:

The Purchase Price (including the Secured Promissory Notes, and Pledge and
Security Agreements, all duly executed by Buyer) as provided in Sections 1.4 and
2.1; and

The Assignment and Assumption Agreement, duly executed by Subsidiary;

A certificate of the Secretary of each of Parent and Subsidiary certifying, as
complete and accurate as of the Closing, attached copies of the governing
documents of Parent and Subsidiary as amended and restated, respectively, and
certifying and attaching all requisite resolutions or actions of Buyer's board

                                       5
<PAGE>

of directors approving the execution and delivery of this Agreement and the
consummation of the contemplated transactions and certifying to the incumbency
and signatures of the officers of Buyer executing this Agreement and any other
document relating to the contemplated transactions; and

A legal opinion from Buyer's counsel that (1) Buyer is bound by this Agreement
and (2) subject to Closing, Subsidiary is obligated for the Assumed Liabilities
and Buyer is obligated under the Secured Promissory Notes, Pledge and Security
Agreements and Stock Value Guaranty Agreements and under this Agreement for the
balance of the Purchase Price.

2.4 CONSENTS AND OTHER CONDITIONS TO CLOSING. It shall also be a condition
precedent to closing that:

     (a)  Buyer and Seller shall have obtained all necessary material consents
          or approvals from all governmental or regulatory authorities that are
          necessary to acquire the Subject Assets and to continue the historical
          operations of the Seller in the Subsidiary;

     (b)  Seller shall not be involved in or threatened with any litigation that
          would have a material adverse effect on the Subject Assets;

     (c)  an environmental inspection (where applicable) by a licensed
          environmental inspection firm selected and paid solely by Parent or
          Subsidiary shall have reasonably determined the Subject Assets to be
          free from significant environmental liabilities;

Seller shall have obtained all necessary consents from any utility companies,
landlords, lenders, suppliers and other third parties in connection with the
material contracts described in Exhibit 5 to be assumed by Subsidiary at Closing
("Material Consents"). If there are any Material Consents that have not yet been
obtained (or otherwise are not in full force and effect) as of the Closing, in
the case of each Seller contract as to which such Material Consents were not
obtained (or otherwise are not in full force and effect) (the "RESTRICTED
MATERIAL CONTRACTS"), Buyer may waive the closing conditions as to any such
Material Consent and either:

          (i)  elect to have Seller continue its efforts to obtain the Material
               Consents; or

          (ii) with the exception of leases or bank notes, elect to have Seller
               retain that Restricted Material Contract and all Liabilities
               arising therefrom or relating thereto.

If Buyer elects to have Seller continue its efforts to obtain any Material
Consents and the Closing occurs, notwithstanding Sections 1.1 and 1.5, neither
this Agreement nor the Assignment and Assumption Agreement nor any other
document related to the consummation of the contemplated transactions shall
constitute a sale, assignment, assumption, transfer, conveyance or delivery or
an attempted sale, assignment, assumption, transfer, conveyance or delivery of
the Restricted Material Contracts, and following the Closing, the parties shall
use Best Efforts (other than that Seller and Buyer shall have no obligation to
offer or pay any consideration in order to obtain any such Material Consents),
and cooperate with each other, to obtain the Material Consent relating to each
Restricted Material Contract as quickly as practicable. Pending the obtaining of
such Material Consents relating to any Restricted Material Contract, the parties
shall cooperate with each other in any reasonable and lawful arrangements
designed to provide to Buyer the benefits of use of the Restricted Material
Contract for its term (or any right or benefit arising thereunder, including the
enforcement for the benefit of Buyer of any and all rights of Seller against a
third party thereunder). Once a Material Consent for the sale, assignment,
assumption, transfer, conveyance and delivery of a Restricted Material Contract
is obtained, Seller shall promptly assign, transfer, convey and deliver such
Restricted Material Contract to Buyer, and Buyer shall assume the obligations
under such Restricted Material Contract assigned to Buyer from and after the
date of assignment to Buyer pursuant to a special-purpose assignment and
assumption agreement substantially similar in terms to those of the Assignment
and Assumption Agreement (which special-purpose agreement the parties shall
prepare, execute and deliver in good faith at the time of such transfer, all at
no additional cost to Buyer). If there are any Consents not listed on Exhibit 5
necessary for the assignment and transfer of any Seller contracts to Buyer (the
"NONMATERIAL CONSENTS") which have not yet been obtained (or otherwise are not
in full force and effect) as of the Closing, Buyer shall elect at the Closing,
in the case of each of the Seller contracts as to which such Nonmaterial
Consents were not obtained (or otherwise are not in full force and effect) (the
"RESTRICTED NONMATERIAL CONTRACTS"), whether to:

                                       6
<PAGE>

         (i) accept the assignment of such Restricted Nonmaterial Contract, in
which case, as between Buyer and Seller, such Restricted Nonmaterial Contract
shall, to the maximum extent practicable and notwithstanding the failure to
obtain the applicable Nonmaterial Consent, be transferred at the Closing
pursuant to the Assignment and Assumption Agreement as elsewhere provided under
this Agreement; or

         (ii) reject the assignment of such Restricted Nonmaterial Contracts, in
which case, notwithstanding Sections 1.1 and 1.5, (A) neither this Agreement nor
the Assignment and Assumption Agreement nor any other document related to the
consummation of the Contemplated Transactions shall constitute a sale,
assignment, assumption, conveyance or delivery or an attempted sale, assignment,
assumption, transfer, conveyance or delivery of such Restricted Nonmaterial
Contract, and (B) Seller shall retain such Restricted Nonmaterial Contract and
all liabilities arising therefrom or relating thereto.

2.5 FAILURE OF CONDITIONS. If any of the material conditions to Closing set
forth in Sections 2.2, 2.3 and 2.4 have not been satisfied, the party or parties
entitled to the benefit of such material conditions may elect to waive the
requirement or terminate this Agreement without further liability of the
terminating party or to consummate the transactions contemplated hereby.

ARTICLE THREE: WARRANTIES AND REPRESENTATIONS OF SELLER
-------------------------------------------------------

Seller hereby warrants and represents to Buyer, which warranties and
representations shall survive the Closing for one year, as follows:

CORPORATE MATTERS; NO CONFLICT. Seller is a corporation duly incorporated,
validly existing and in good standing under the Laws of the State of Texas and
has the authority and power, corporate and otherwise, to carry on the Business
in the places and in the manner presently conducted. Seller has the corporate
power and authority to enter into this Agreement and the agreements and
documents to be executed and delivered pursuant to this Agreement (the
"Ancillary Agreements") by Seller and to consummate the transactions
contemplated hereby.

The execution, delivery and performance of this Agreement and the Ancillary
Agreements to be executed by Seller and the consummation of the transactions
contemplated hereby have been approved by all necessary corporate action, other
than the Seller's shareholders. This Agreement and the Ancillary Agreements to
be executed by Seller constitute, or, in the case of such Ancillary Agreements,
upon their execution and delivery by Seller, will constitute, valid and legally
binding obligations of Seller, enforceable against it in accordance with their
respective terms except as such enforceability may be limited by bankruptcy and
other Laws generally affecting the rights of creditors and general principles of
equity.

To Seller's knowledge, there are no material adverse environmental liabilities
associated with the Seller's Business or the Subject Assets.

Except as set forth in Schedule 3, the execution, delivery and performance of
this Agreement and such Ancillary Agreements to be executed by Seller and the
consummation of the transactions contemplated hereby by such party: (i) does not
and will not violate, conflict with, or result in the breach of, or default
under, any term, condition or provision of, give rise to any right to terminate,
cancel, modify, accelerate or otherwise change the existing rights or
obligations of such party with respect to, (A) any domestic or foreign Federal,
state or local statute, law, ordinance, rule, administrative interpretation,
regulation, policy, guideline or other requirement of or by any Governmental
Authority, each as amended through the date hereof (collectively, "Laws") which
is applicable to such party, the Business and/or the Subject Assets, (B) any
judgment, order, writ, injunction, decree, directive or award of any arbitrator
or Governmental Authority (collectively, an "Order") which is applicable to such
party, the Business and/or the Subject Assets, (C) the charter documents of
Seller or any securities issued by Seller, or (D) any authorization, approval,
consent, qualification, permit or license (collectively, an "Authorization") of
any Governmental Authority, or any material agreement, or other material
instrument, document or understanding, oral or written, to which such party is a
party, by which Seller may have rights or by which any of the Subject Assets may
be bound or affected; or (ii) result in the creation or imposition of any
Encumbrance except Permitted Encumbrances, on the Subject Assets.

                                       7
<PAGE>

No Authorization or other action of, or registration, declaration, recording or
filing with, any Governmental Authority or other person (other than the approval
of the Board of Directors and shareholders of Seller) is required in connection
with the execution and delivery of this Agreement and/or any Ancillary
Agreements to be executed and delivered pursuant hereto by Seller and/or the
consummation by Seller of the transactions contemplated hereby.

TITLE TO THE SUBJECT ASSETS. Seller has good and valid title to all of the
assets constituting the Subject Assets described in Section 1.1, free and clear
of all Encumbrances except Permitted Encumbrances.

COMMITMENTS; CUSTOMERS AND VENDORS. To the knowledge of Seller, the Assets
listed on Exhibit 1 are all of the material agreements, arrangements, and other
commitments of the Business with its customers (whether written, oral or
otherwise) which, if not assigned to or assumed by Buyer as an "Assumed
Contract" hereunder, would result in liabilities or obligations of Seller
accruing after the Closing. True and correct copies of each of the contracts and
all amendments and modifications thereof, have been delivered to Buyer. Assuming
that the consent of the customers who are parties to the contracts is obtained
pursuant to consents (as defined in 5.1), all of the contracts are assignable by
Seller.

EACH ASSUMED CONTRACT IS IN FULL FORCE AND EFFECT. To the knowledge of Seller,
Seller has not been made aware of any facts that would suggest that any of the
material contracts within Subject Assets is not valid and binding or enforceable
in accordance with its terms, except as such enforceability may be limited by
bankruptcy and other Laws generally affecting the rights of creditors and
general principles of equity. Except as set forth in Schedule 3, neither Seller
nor, to the knowledge of Seller, any other party to a contract is in breach or
default under any contract (with or without the lapse of time, or the giving of
notice, or both).

BROKERS, AGENTS. Seller has not dealt with any agent, finder, broker or other
representative (other than representatives of Buyer) in any manner which could
result in Buyer being liable for any finder's, broker's or other fee or
commission in connection with the subject matter of this Agreement.

WARRANTIES TRUE AND CORRECT. No representation or warranty by Seller contained
in this Agreement or in any writing to be furnished pursuant hereto contains or
will contain any untrue statement of fact or omits or will omit to state any
material fact required to make the statements herein or therein complete and not
misleading.

Exclusion of Implied Warranties. SELLER EXCLUDES AND DISCLAIMS ANY AND ALL
IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE SUBJECT ASSETS AND EACH
OF THEM. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, SELLER MAKES NO
WARRANTIES TO BUYER IN CONNECTION WITH THE SALE OR TRANSFER OF THE SUBJECT
ASSETS TO SUBSIDIARY OR THE CONDITION OR PROSPECTS OF THE BUSINESS OTHER THAN
THOSE EXPRESSLY SET FORTH IN THIS ARTICLE THREE.

ARTICLE FOUR: WARRANTIES AND REPRESENTATIONS OF BUYER
-----------------------------------------------------

Buyer hereby warrants and represents to Seller, which warranties and
representations shall survive the Closing for a period of three (3) years
following Closing as follows:

CORPORATE MATTERS; NO CONFLICT. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the state where it was
incorporated. Buyer has the authority and power, corporate or otherwise, to
carry on all business activities in the places and in the manner currently
conducted by it. Buyer has the corporate power and authority to enter into this
Agreement and the Ancillary Agreements to be executed and delivered by it and to
consummate the transactions contemplated hereby. The execution, delivery, and
performance of this Agreement and the Ancillary Agreements by Buyer have been
approved by all necessary corporate action. This Agreement and the Ancillary
Agreements to be executed and delivered by Buyer constitute, or in the case of
the Ancillary Agreements, upon their execution and delivery by Buyer, will
constitute, valid and legally binding obligations of Buyer, enforceable against
it in accordance with their respective terms except as such enforceability may
be limited by bankruptcy and other Laws generally affecting the rights of
creditors and general principles of equity.

                                       8
<PAGE>

The execution, delivery and performance of this Agreement and the Ancillary
Agreements to be executed and delivered by Buyer, the consummation of the
transactions contemplated hereby, and the compliance herewith, by Buyer: (i)
does not, and will not violate, conflict with or result in the breach of, or
default under, any term, condition or provision of, give rise to any right to
terminate, cancel, modify, accelerate or otherwise change the existing rights or
obligations of such party with respect to, (a) any Laws which is applicable to
Buyer, (b) Order which is applicable to Buyer, (c) the charter documents of
Buyer or any securities issued by Buyer, or (d) any Authorization of any
Governmental Authority, or any agreement, or other instrument, document or
understanding, oral or written, to which Buyer is a party.

No Authorization or other action of, or registration, declaration, recording or
filing with, any Governmental Authority or other person is required in
connection with the execution and delivery of this Agreement and/or any
Ancillary Agreement to be executed and delivered pursuant hereto by Buyer and/or
the consummation by Buyer of the transactions contemplated hereby.

SEC FILINGS; FINANCIAL STATEMENTS

     (a)  The Parent has made available to the Seller, upon request of the
          Seller, accurate and complete copies (excluding copies of exhibits) of
          each report, registration statement and definitive proxy statement
          filed by the Parent with the Securities Exchange Commission (the
          "SEC") between December 31, 2004 and the date of this Agreement (the
          "Parent SEC Documents"). As of the time it was filed with the SEC (or,
          if amended or superseded by a filing prior to the date of this
          Agreement, then on the date of such filing): (i) each of the Parent
          SEC Documents complied in all material respects with the applicable
          requirements of the Securities Act of 1933 or the Securities Exchange
          Act of 1934 (as the case may be); and (ii) none of the Parent SEC
          Documents contained any untrue statement of a material fact or omitted
          to state a material fact required to be stated therein or necessary in
          order to make the statements therein, in the light of the
          circumstances under which they were made, not misleading.

     (b)  Between the date of the most recently filed Parent SEC Document and
          the date of this Agreement, there has been no material adverse change
          in the Parent's affairs that has not been disclosed in the Parent's
          SEC Documents, PROVIDED, HOWEVER, that for purposes of determining
          whether there shall have been any such material adverse change, (i)
          any adverse change resulting from or relating to worldwide general
          business or economic conditions shall be disregarded, (ii) any adverse
          change resulting from or relating to conditions generally affecting
          the industry in which Parent competes shall be disregarded, and (iii)
          any adverse change to the stock price of the Parent's Common Stock, as
          quoted on any nationally recognized stock quotation system, shall be
          disregarded.

     (c)  The consolidated financial statements contained in the Parent's SEC
          Documents: (i) complied as to form in all material respects with the
          published rules and regulations of the SEC applicable thereto; (ii)
          were prepared in accordance with generally accepted accounting
          principles applied on a consistent basis throughout the periods
          covered, except as may be indicated in the notes to such financial
          statements and (in the case of unaudited statements) as permitted by
          Form 10-Q of the SEC, and except that unaudited financial statements
          may not contain footnotes and are subject to year-end audit
          adjustments; and (iii) fairly present the consolidated financial
          position of the Parent and its subsidiaries as of the respective dates
          thereof and the consolidated results of operations of the Parent and
          its subsidiaries for the periods covered thereby.

     (d)  The Parent qualifies as a registrant whose securities may be resold
          pursuant to Form S-1 or SB-2 promulgated by the SEC pursuant to the
          Securities Act of 1933, as amended.

ACQUISITION SUBSIDIARY. Subsidiary was formed in May, 2006 and has transacted no
business other than matters relating to its formation or the entry into this
Agreement. Immediately following the Closing, Subsidiary will be a wholly owned
subsidiary of Parent, ERF Wireless, Inc.

                                       9
<PAGE>

BROKERS; AGENTS. Buyer has not dealt with any agent, finder, broker or other
representative in any manner other than Ed Valle, Executive Vice President of
RiverStone Financial Group, Inc., as authorized by Seller, which could result in
Seller being liable for any fee or commission in the nature of a finder's or
originator's fee in connection with the subject matter of this Agreement.

WARRANTIES TRUE AND CORRECT. No warranty or representation by Buyer contained in
this Agreement or in any writing to be furnished pursuant hereto contains or
will contain any untrue statement of fact or omits or will omit to state any
material fact required to make the statements therein contained not misleading.

ARTICLE FIVE: ADDITIONAL COVENANTS
----------------------------------

5.1 GENERAL Buyer and Seller understand and agree to cooperate on the completion
of comprehensive due diligence, including the preparation of Parent audited
financial statements covering the assets to be purchased and liabilities assumed
for inclusion in a report on Form 8-K to be filed by Parent with the U.S.
Securities and Exchange Commission. Buyer and Seller acknowledge that the
satisfactory completion of due diligence is a condition precedent to the closing
obligation of either party.

5.2 BEST EFFORTS. Buyer shall use its best efforts to obtain within sixty (60)
days after the Closing from each party (other than Seller) to a contract such
customer's written agreement to the assignment of its contract to Buyer, and
Seller shall use its best efforts, together with Buyer, in obtaining all such
Consents. "Best Efforts" means the efforts that a prudent Person desirous of
achieving a result would use in similar circumstances to achieve that result as
expeditiously as possible, provided, however, that a Person required to use Best
Efforts under this Agreement will not be thereby required to take actions that
would result in a material adverse change in the benefits to such Person of this
Agreement and the contemplated transactions or to dispose of or make any change
to its business, expend any material funds or incur any other material burden.

5.3 PUBLICITY. No party will make any public disclosure or issue any press
releases pertaining to the existence of this Agreement without having first
obtained the consent of the other party, except for communications with
employees, customers, suppliers, governmental agencies, and other groups as may
be legally required or necessary or appropriate (i.e., any securities filings or
notices), and which are not inconsistent with the prompt consummation of the
transactions contemplated in this Agreement. However, Parent is a public company
and Seller agrees that it will not unreasonably withhold consent for Parent to
issue a public press release, provided to Seller in advance, if requested by
Parent.

5.4 COOPERATION. Seller shall cooperate with Buyer and use its best efforts to
cause respective officers, employees, agents, accountants and representatives,
if any, of Seller to cooperate with Buyer after the Closing to facilitate the
orderly transition of the Business and the Subject Assets to Buyer and to
minimize any disruption to the Business that might result from the transactions
contemplated hereby. Without limiting the generality of the foregoing provision,
during the ninety (90) day period commencing on the Closing Date, Seller shall
perform the transition services as reasonably specified by Buyer.

5.5 EXECUTION OF ADDITIONAL DOCUMENTS. From time to time, as and when requested
by Buyer, Seller shall execute and deliver, or cause to be executed and
delivered, all such documents and instruments of conveyance and shall take, or
cause to be taken, all such further or other actions as are necessary to
consummate the transactions contemplated by this Agreement and to convey,
assign, transfer and deliver to Buyer any of the properties or assets intended
to be conveyed, assigned, transferred and delivered pursuant to this Agreement.

5.7 RECORDS. For the five (5) year period commencing on the Closing Date, upon
reasonable notice, Buyer and Seller agree to furnish or cause to be furnished,
during normal business hours, to each other and their respective
representatives, employees, counsel and accountants access to such information
and assistance relating to the Business as is reasonably necessary for financial
reporting and accounting matters, the preparation and filing of any returns,
reports or forms, or the defense of any tax claim or assessment, relating to the
Business; provided, however, that such access does not unreasonably disrupt the
normal operations of Buyer or Seller.

5.8 DEFAULT PROVISIONS. Buyer and Seller have agreed to the default provisions
that are included in the Secured Promissory Notes, Pledge and Security
Agreements.

                                       10
<PAGE>

ARTICLE SIX: INDEMNIFICATION & POST CLOSING CONDITIONS
------------------------------------------------------

6.1 INDEMNIFICATION OF BUYER. Seller agrees to indemnify Buyer and its
Affiliates and their respective members, managers, shareholders, directors,
officers, employees, accountants, attorneys and agents (collectively, the "Buyer
Indemnified Parties") against, and to hold each such person harmless from, any
and all damages, losses, deficiencies, actions, demands, judgments, diminution
in value, costs and expenses (including reasonable attorneys' and accountants'
fees) (collectively, "Losses") of or against such person resulting from (i) any
misrepresentation or breach of warranty on the part of Seller in this Agreement
or in any Ancillary Agreement; (ii) any breach or non-fulfillment of any
agreement or covenant contained herein or in any Ancillary Agreement on the part
of Seller; (iii) any failure of Seller to pay and/or perform any liabilities or
obligations of Seller or the Business (including the Specified Retained
Liabilities and any such liability arising by operation of law) other than the
Assumed Liabilities; and (iv) any claims and liabilities to the extent related
to both (A) Seller's operation of the Business and (B) periods or occurrences
prior to the Closing or, as Seller's operation of the Business relates to an
Assumed Contract, prior to the deferred transfer date, if any, applicable to
such Restricted Material Contract. For purposes hereof, "Affiliate" shall mean,
as to any person, any other person which, directly or indirectly through one or
more intermediaries, controls, is controlled by, or is under common control
with, such person.

6.2 INDEMNIFICATION OF SELLER. Buyer agrees to indemnify Seller and its
Affiliates and their respective shareholders, directors, officers, employees,
accountants, attorneys and agents (collectively, the "Seller Indemnified
Parties") against, and to hold each such person harmless from, any and all
Losses of or against such person resulting from (i) any misrepresentation or
breach of warranty on the part of Buyer in this Agreement or in any Ancillary
Agreement; (ii) any breach or non-fulfillment of any agreement or covenant
contained herein or in any Ancillary Agreement on the part of Buyer; (iii) any
failure by Buyer to pay, discharge and/or perform any of the Assumed
Liabilities; (iv) any claims and liabilities to the extent related to both (A)
Buyer's operation of the Business and (B) periods or occurrences after the
Closing or, as Buyer's operation of the Business relates to a Restricted
Material Contract, after the deferred transfer date if any, applicable to such
Restricted Material Contract.

6.3 PROCEDURE RELATIVE TO INDEMNIFICATION. The following procedure shall govern
indemnification:

(a) If either party hereto shall claim that it is entitled to be indemnified
pursuant to the terms of this Article Six, it (the "Claiming Party") shall so
notify Seller in the case of a claim for indemnification hereunder (a "Claim")
by any Claiming Party who or which is a Buyer Indemnified Party or Buyer in the
case of a Claim by a Claiming Party who or which is a Seller Indemnified Party
(the "Indemnifying Party") in writing of such claim promptly within ninety (90)
days after receipt of a notice of such claim or notice of any claim of a third
party that may reasonably be expected to result in a claim by the Claiming Party
against the Indemnifying Party except that notice shall be given to the
Indemnifying Party within such earlier period of time as may be reasonably
necessary to allow the Indemnifying Party to respond to any pleading or other
document for which a timely response is required; provided, however, that
failure to timely give such notification shall not affect the indemnification
provided hereunder except to the extent the Indemnifying Party shall have been
actually prejudiced as a result of such failure. Such notice shall specify the
breach of representation, warranty, or agreement claimed by the Claiming Party
and the Losses incurred by, or imposed upon, the Claiming Party on account
thereof. If such Losses are liquidated in amount, the notice shall so state and
such amount shall be deemed the amount of the Claim of the Claiming Party. If
such Losses are not liquidated in amount, the notice shall so state and, in such
event, a Claim shall be deemed asserted against the Indemnifying Party by the
Claiming Party, but no payment shall be made on account thereof until the amount
of such Claim is liquidated and the Claim is finally determined. In the case of
a Claim other than one which is based upon a Proceeding by any third party,
including any Proceeding by any Governmental Authority (a "Third Party Claim"),
if the Indemnifying Party agrees with such Claim for indemnification, it shall
remit payment for the amount of such Claim promptly after receipt from the
Claiming Party of the notice and invoice therefore. In the event of a dispute,
the Claiming Party and the Indemnifying Party shall proceed in good faith and
attempt to negotiate a resolution of such dispute, and if not resolved through
negotiations, such dispute shall be resolved by litigation in an appropriate
court of competent jurisdiction.

(b) The following provisions shall apply to any Claim of the Claiming Party that
is based upon a Third Party Claim:

                                       11
<PAGE>

(1) The Indemnifying Party shall, upon receipt of such written notice and at its
expense, defend such Third Party Claim in its own name or, if necessary, in the
name of the Claiming Party. The Claiming Party will cooperate with and make
available to the Indemnifying Party such assistance and materials as may be
reasonably requested of it and the Claiming Party shall have the right, at its
expense, to participate in such defense. The Indemnifying Party shall have the
right to settle and compromise such Third Party Claim only with the consent of
the Claiming Party, which consent shall not be unreasonably withheld; provided,
however, that, in making its determination as to whether to grant such consent,
the Claiming Party shall be entitled to consider the impact of the proposed
settlement upon its reputation and/or the goodwill of the businesses which it
conducts.

(2) If the Indemnifying Party shall notify the Claiming Party that it disputes
any Claim made by the Claiming Party with respect to, and/or it shall refuse or
choose not to conduct a defense against, such Third Party Claim, then the
Claiming Party shall have the right to conduct a defense against such Third
Party Claim and shall have the right to settle and compromise such Third Party
Claim without the consent of the Indemnifying Party. Once the amount of such
Claim is liquidated and the Claim is finally determined, the Claiming Party
shall be entitled to pursue each and every remedy available to it at law or in
equity to enforce the indemnification provisions of this Article Six and, if it
is determined, or the Indemnifying Party agrees, that it is obligated to
indemnify the Claiming Party for such Claim, the Indemnifying Party agrees to
pay all costs, expenses and fees, including all reasonable attorneys' fees,
which may be incurred by the Claiming Party in attempting to enforce
indemnification under this Article Six, whether the same shall be enforced by
suit or otherwise.

6.4 POST CLOSING CONDITIONS.

6.4.1 BUYER'S OBLIGATIONS TO SELLER Following the Closing, Buyer shall have the
ongoing obligations and duties to Seller concerning the operations of Subsidiary
set forth below.

         (1) Subsidiary will be domiciled and operated from Blanco, Texas,
unless otherwise agreed to in writing by both Parent and Seller, until December
30, 2010 or the date Buyer pays in full the Purchase Price.

         (2) Parent will operate the Subsidiary as a wholly owned subsidiary of
Parent until December 30, 2010 or the date Buyer pays in full the Purchase
Price. Parent shall also not, without the written approval of Seller cause the
Subsidiary to sell or otherwise dispose of any of its assets or of any Subject
Assets acquired from Seller until December 30, 2010 or the date Buyer pays in
full the Purchase Price, except in each case for dispositions made in the
ordinary course of business or payment of expenses incurred by the Subsidiary
pursuant to the transactions contemplated by this Agreement.

         (3) Parent shall elect Robert "Bobby Mack" McClung Chairman and CEO of
Subsidiary.

         (3) Buyer shall cause the Seller's employees listed on Exhibit 6 to be
offered at will employment with Subsidiary, subject to Closing, on terms no less
favorable to such employees than they currently enjoy with Seller.

6.4.2 SELLERS OBLIGATIONS TO BUYER. Following the Closing, Seller shall have the
ongoing obligations and duties to Buyer concerning the operations of Subsidiary
set forth below.

         (1) Following the Closing, the operation of Subsidiary will be focused
on the sales, design, installation, and implementation aspects of the business
and all "shared service " aspects of the Business will be provided by Parent to
Subsidiary as a support function in order to reduce costs and achieve economies
of scale. Examples of such shared services include, but are not limited to, (1)
administrative and financial transactions such as billing, collections, purchase
orders, payments, accounting, etc., (2) administrative matters related to
personnel, such as payroll, insurance, stock plans and 401K plan, (3) legal,
tax, leasing, public releases, investor relations, and human relations
functions. Robert " Bobby Mack" McClung as Chairman and CEO of Subsidiary will
make all day-to-day operational decisions of Subsidiary and agrees to use
reasonable efforts not to duplicate these administrative "shared services"
within Subsidiary to the extent that Parent agrees with Subsidiary to provide
and does, in fact, provide such shared services.

         (2) Following the Closing, all operations of the Blanco wireless
broadband ISP service as well as all future ISP services to commercial
businesses and residential customers will be conducted as a part of the ERF

                                       12
<PAGE>

Network Operations Subsidiary. Robert " Bobby Mack" McClung will be responsible
for all operations acquired from Seller as well as other Central Texas ISP
related services acquired by Parent from other entities.

         (4) Parent owns and operates a network operations center (NOC) at
Parent's League City facility that will initially serve as the backup for the
Blanco Texas NOC. After suitable testing, training, and staffing the League City
NOC will become the primary NOC for the ERF Network Operations Subsidiary and
the Blanco Texas NOC will become the backup NOC.

ARTICLE SEVEN: MISCELLANEOUS
----------------------------

7.1 EXPENSES. The parties hereto shall pay their own expenses, including
accountants' and attorneys' fees, incurred in connection with the negotiation
and consummation of the transactions contemplated by this Agreement and the
Ancillary Agreements. Buyer shall be liable for and shall pay and discharge when
due any sales or transfer taxes incurred in connection with the purchase and
sale of the Subject Assets pursuant to this Agreement.

7.2 HEADINGS; USE OF CERTAIN WORDS. The headings in this Agreement are for
purposes of convenience and ease of reference only and shall not be construed to
limit or otherwise affect the meaning of any part of this Agreement. Unless the
context clearly otherwise requires, as used herein, the term "Agreement" shall
mean this Agreement, including the Exhibits attached hereto. The words "herein,"
"hereof" and "hereunder" and other words of similar import refer to this
Agreement as a whole and not to any particular Article, Section or other
subdivision, and, except as expressly provided otherwise herein, references
herein to Articles or Sections or Schedules or Exhibits shall mean the Articles
and Paragraphs hereof and the Schedules and Exhibits attached hereto. The use of
the neuter pronoun "it" shall also refer as appropriate to the masculine and/or
feminine gender, and vice versa. The use of the singular herein shall, where
appropriate, be deemed to include the plural and vice versa. As used herein, the
word "person" refers to any individual, corporation, limited liability company,
partnership, trust, Governmental Authority or other organization or entity. As
used herein, the term "including" shall mean "including, without limitation. For
those warranties and representations set forth in Article Three which are
subject to the qualification "to the Knowledge of Seller" or similar language,
Seller shall be deemed to have knowledge of a matter if any executive officer
has knowledge of the matter. For those warranties and representations set forth
in Article Four which are subject to the qualification "to the Knowledge of
Buyer" or similar language, Buyer shall be deemed to have knowledge of a matter
if any executive officer has knowledge of the matter.

7.3 NOTICES. All notices or other communications required or permitted to be
given hereunder shall be in writing and shall be considered to be given and
received in all respects when personally delivered, when sent by facsimile
transmission actually received by the receiving equipment, when sent by
reputable express or courier delivery service, delivery charges prepaid, or
three (3) days after being deposited in the United States mail, certified mail,
postage prepaid, return receipt requested, addressed as set forth on the
signature page, or to such other address as shall be designated by the addressee
by notice duly given in accordance herewith.

7.4 ASSIGNMENT. This Agreement and the rights hereunder shall not be assignable
or transferable by Buyer or Seller prior to or following the Closing without the
prior written consent of the other party hereto.

7.5 BINDING EFFECT. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective legal representatives, heirs,
beneficiaries, successors and permitted assigns. Nothing expressed or implied in
this Agreement is intended or shall be construed to confer upon or give any
person other than the parties hereto and their permitted successors or assigns
any rights or remedies under or by reason of this Agreement or any transaction
contemplated hereby.

7.6 ENTIRE AGREEMENT; AMENDMENT OR WAIVER; CUMULATIVE REMEDIES. This Agreement,
the Schedules and Exhibits attached hereto and the agreements executed and
delivered in connection herewith constitute the entire agreement between the
parties hereto relating to the subject matter hereof, and all prior agreements,
correspondence, discussions, negotiations, agreements and understandings of the
parties (whether oral or written) are merged herein and superseded hereby. No
amendment, modification, or waiver hereto or hereunder shall be valid unless

                                       13
<PAGE>

made in writing and signed by an authorized signatory of each party to be
affected thereby against whom enforcement thereof is being sought. The failure
of any party hereto to enforce at any time any of the provisions of this
Agreement shall in no way be construed to be a waiver of any such provision, nor
in any way to affect the validity of this Agreement or any part hereof or the
right of such party thereafter to enforce each and every such provision. No
waiver of any breach of, or failure to comply with, this Agreement shall be held
to be a waiver of any other or subsequent breach or failure to comply. All
rights and remedies under this Agreement are cumulative to all other rights and
remedies that may be available to each party, including all rights and remedies,
whether in tort or otherwise, whatsoever at law or in equity with respect
hereto, which each party hereby expressly reserves.

7.7 SEVERABILITY. The parties agree that if any provision of this Agreement
shall under any circumstances be deemed invalid or inoperative, this Agreement
shall be construed with the invalid or inoperative provision deleted, and the
rights and obligations of the parties shall be construed and enforced
accordingly.

7.8 APPLICABLE LAW. This Agreement in all respects, including as to its
validity, interpretation, enforcement and effect, shall be governed by the
internal Laws of the State of Texas without regard to the Laws which otherwise
would govern under principles of conflicts of laws thereof.

7.9 COUNTERPARTS. This Agreement may be executed in one or more counterparts,
all of which shall be considered but one and the same agreement, and shall
become effective when one or more such counterparts have been signed by each of
the parties and delivered to the other party.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day,
month and year first above written.

                                    BUYER
                                    ERF Wireless, Inc., a Nevada corporation
                                    ("Parent")

                                    By: /s/ Dr. H. Dean Cubley
                                        ----------------------------------------
                                    Name: Dr. H. Dean Cubley
                                    Title: Chief Executive Officer

                                    ERF Network Operations, Inc. a Texas
                                    corporation ("Subsidiary")
                                    By: /s/ R. Greg Smith
                                        ----------------------------------------
                                    Name: R. Greg Smith
                                    Title: Chief Executive Officer (Acting)
Send Notices to:
----------------
Dr. H. Dean Cubley, CEO
ERF Wireless, Inc.
2911 South Shore Blvd., Suite 100
League City, TX 77573
Telephone 281.538.2101
Facsimile 281.538.2121
Email rgs@erfwireless.com

                                    SELLER
                                    Momentum Online Computer Services, Inc.
                                    Momentum Online Internet Services, Inc.
                                    Robert C. McClung
                                    By: /s/ Bobby "Mack" McClung
                                        ----------------------------------------
                                    Name: Bobby "Mack" McClung
                                    Title: Chief Executive Officer
Send Notices to:
----------------
Mr. Robert McClung
P.O. Box 1630
Blanco, Texas 78606

                                       14

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