Document:

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                                                                   Exhibit 10.36

                         COMMON STOCK PURCHASE AGREEMENT

     THIS COMMON STOCK PURCHASE AGREEMENT (the "Agreement") is entered into as
of February 13, 2003, by and among NEOSE TECHNOLOGIES, INC., a Delaware
corporation (the "Company"), and the purchasers listed on Schedule I hereto
(individually a "Purchaser" and, collectively, the "Purchasers").

                                   Background

     A.   The Company desires to issue and sell, and the Purchasers desire to
purchase, shares of common stock, par value $.01 per share, of the Company
("Common Stock"), for the consideration and upon the terms and conditions
hereinafter set forth.

     B.   The Company and the Purchasers wish to set forth herein certain
agreements regarding their future relationships and their rights and obligations
with respect to the Common Stock.

                                      Terms

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements hereinafter set forth, the parties hereto agree as follows:

     1.   Sale and Purchase of Common Shares.

          (a)  Sale and Purchase. Subject to the terms and conditions hereof,
the Company hereby agrees to sell, and the Purchasers, severally and not
jointly, hereby agree to purchase, on the date hereof (the "Closing Date")
shares of Common Stock (the "Common Shares") at a price per Common Share (the
"Share Price") of $6.00. The total purchase price to be paid by each Purchaser
is set forth opposite each Purchaser's name as that Purchaser's "Purchase
Commitment" on Schedule I hereto. The number of Common Shares to be purchased by
a Purchaser shall be equal to the dollar amount of the "Purchase Commitment" set
forth opposite the Purchaser's name on Schedule I hereto divided by the Share
Price. The total aggregate purchase price to be paid by all of the Purchasers
(the "Purchase Price") shall not exceed $17,200,596.

          (b)  Closing. The closing shall take place at the offices of Pepper
Hamilton LLP, 3000 Two Logan Square, Eighteenth and Arch Streets, Philadelphia,
PA 19103-2799.

          (c)  Payment of Purchase Price. On the Closing Date, each Purchaser
shall pay and deliver to the Company that portion of the Purchase Price set
forth opposite such Purchaser's name as that Purchaser's "Purchase Commitment"
on Schedule I hereto by wire transfer of immediately available funds.

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          (d)  Delivery of Common Shares. On the Closing Date, against delivery
by the applicable Purchaser of that portion of the Purchase Price to be paid by
it, the Company shall issue and, within three (3) business days following the
Closing Date, deliver to such Purchaser a certificate representing that number
of Common Shares to be purchased by each Purchaser on the Closing Date pursuant
to Section 1(a), registered in the name of such Purchaser or the designated
nominee(s) of such Purchaser.

     2.   Representations and Warranties of the Company. The Company hereby
represents and warrants as follows:

          (a)  The Company has been duly incorporated and is validly existing as
a corporation in good standing under the laws of the State of Delaware, has full
corporate power and corporate authority to own or lease its properties and
conduct its business as described in the Company's statements, reports,
schedules, forms and other documents filed by the Company with the Securities
and Exchange Commission (the "SEC") since January 1, 2002 (the "SEC Documents")
and as now being conducted, and is duly qualified as a foreign corporation and
in good standing in all jurisdictions in which the character of the property
owned or leased or the nature of the business transacted by it makes
qualification necessary, except where failure to be so qualified would not have
a material adverse effect on the business, properties, financial condition or
results of operations of the Company (a "Material Adverse Effect"). The Company
has no subsidiaries and has never had any operating subsidiaries.

          (b)  The authorized capital of the Company consists of 35,000,000
shares of capital stock, (i) of which 30,000,000 shares are designated Common
Stock, of which 14,324,279 shares of Common Stock were outstanding and were duly
authorized, validly issued, fully paid and nonassessable on December 31, 2002,
and (ii) of which 5,000,000 shares are designated preferred stock, par value
$.01 per share, none of which were outstanding on December 31, 2002 or are
outstanding on the date hereof. The Company has no other classes of stock
authorized or outstanding. As of December 31, 2002, options to purchase
3,827,683 shares of Common Stock were outstanding, and when such options are
exercised and the prescribed exercise price paid, the shares of Common Stock
issued with respect to such options will be duly authorized, validly issued,
fully paid and nonassessable. Except as set forth above and other than (i)
496,542 shares of Common Stock reserved for issuance under the Company's Amended
and Restated 1995 Stock Option/Stock Issuance Plan, (ii) 35,163 shares of Common
Stock reserved for issuance under the Company's Employee Stock Purchase Plan,
and (iii) 499,186 shares of Common Stock reserved for issuance under option
grants outside of the Company's Amended and Restated 1995 Stock Option/Stock
Issuance Plan, there are as of December 31, 2002, no existing options, warrants,
calls, commitments or rights of any character to purchase or otherwise acquire
from the Company shares of capital stock of any class, no outstanding securities
of the Company that are convertible into shares of capital stock of the Company
of any class, and no options, warrants or rights to purchase from the Company
any such convertible securities. The Company has no outstanding contractual or
other obligation to repurchase, redeem or otherwise acquire any outstanding
shares of its capital stock. The issued and outstanding shares of Common Stock
have not been issued in violation of any preemptive or other rights of any
person, whether arising by statute, under the Second Amended and Restated
Certificate of Incorporation (the "Certificate of Incorporation"), the
Certificate of Designation establishing and designating the Series A Junior
Participating Preferred Stock (the "Certificate of Designation")

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or the Second Amended and Restated Bylaws (the "Bylaws") of the Company or in
any other manner known to the Company. No person or entity is entitled to any
preemptive or similar right with respect to the issuance of any capital stock of
the Company.

          (c)  The Company has full corporate power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.
This Agreement has been duly authorized and validly executed and delivered by
the Company and constitutes a legal, valid and binding obligation of the
Company, enforceable in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors' and contracting parties' rights generally and
except as enforceability may be subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law) and except as the indemnification agreements of the Company
herein may be legally unenforceable.

          (d)  None of the execution and delivery of this Agreement, the
issuance and sale of the Common Shares by the Company hereunder, the fulfillment
of the terms hereof or the consummation of the transactions contemplated herein,
will (i) violate any law, rule, regulation, judgment, injunction, decree,
determination, award or order of any court or governmental agency or
instrumentality, domestic or foreign, or (ii) conflict with or result in any
breach of any of the terms of or constitute a default (with or without the
giving of notice or the passage of time or otherwise) under, or result in the
termination of or the creation or imposition of any mortgage, lien, security
interest or other charge or encumbrance of any nature under the terms of: (A)
any material contract or agreement to which the Company is a party or by which
the Company or any of the assets and properties of the Company is bound, other
than any such conflict, breach or default that would not have a Material Adverse
Effect; or (B) the Company's Certificate of Incorporation, Certificate of
Designation or Bylaws. None of the execution and delivery of this Agreement, the
issuance and sale of the Common Shares by the Company hereunder, the fulfillment
of the terms hereof or the consummation of the transactions contemplated herein,
requires any consent, approval, order or authorization of, or registration with,
or the giving of notice to, any governmental or public body or authority or any
other person, except for such notices, consents or approvals which have
previously been obtained or which will be obtained on or before the Closing Date
and notices and filings that may be required under applicable state and federal
securities laws that will be undertaken by the Company after the Closing Date.

          (e)  The Common Shares being sold hereunder have been duly authorized,
and when issued and paid for in accordance with the terms hereof, will be
validly issued, fully paid and nonassessable.

          (f)  The Common Stock is registered pursuant to Section 12(g) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is listed
on The Nasdaq National Market (the "Nasdaq Stock Market"), and the Company has
taken no action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act or delisting the Common
Stock from the Nasdaq Stock Market.

          (g)  Since becoming subject to the periodic reporting requirements of
the Exchange Act, the Company has made all required filings pursuant to the
rules and regulations promulgated thereunder, and all such filings, as may have
been amended, complied in all

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material respects with the Exchange Act and such rules and regulations as of the
date filed with the SEC. . None of the SEC Documents, as of their respective
dates (as amended through the date hereof), contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. There is, to the best of the Company's
knowledge, no fact, other than general biotechnology information or other
information which is in the public domain and not specific to the Company or its
business, which materially and adversely affects the business, prospects,
condition, affairs or operations of the Company or any of its properties or
assets which has not been disclosed orally to the Purchasers or in the SEC
Documents.

          (h)  As of their respective dates, the financial statements of the
Company, together with related notes and schedules, included in all of the SEC
Documents complied in form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC with respect
thereto. Such financial statements and related notes and schedules have been
prepared in accordance with United States generally accepted accounting
principles, consistently applied, during the period involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent they may not
include footnotes or may be condensed or summary statements) and fairly present
in all material respects the financial position of the Company as of the dates
thereof and its results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

          (i)  The Company is not in violation of its charter, bylaws or other
organizational documents, or in violation of any law, administrative regulation,
ordinance or order of any court or governmental agency, arbitration panel or
authority applicable to the Company, which violation, individually or in the
aggregate, would be reasonably likely to have a Material Adverse Effect, and is
not in default (and there exists no condition which, with or without the passage
of time or giving of notice or otherwise, would constitute a default) in the
performance of any bond, debenture, note or any other evidence of indebtedness
in any indenture, mortgage, deed of trust or any other agreement or instrument
to which the Company is a party or by which the Company is bound or by which the
property of the Company is bound, which would be reasonably likely to have a
Material Adverse Effect.

          (j)  The Company has ownership or license or legal right to use all
patent, copyright, trade secret, trademark, customer lists, designs,
manufacturing or other processes, computer software, systems, data compilation,
research results or other proprietary rights used in the business of the Company
and material to the Company (collectively, "Intellectual Property") other than
Intellectual Property generally available on commercial terms from other
sources. All of such patents, registered trademarks and registered copyrights
owned by the Company have been duly registered in, filed in or issued by the
United States Patent and Trademark Office, the United States Register of
Copyrights or the corresponding offices of other jurisdictions and have been
maintained and renewed in accordance with all applicable provisions of law and
administrative regulations in the United States and all such jurisdictions,
except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect. All material licenses or other material agreements
under which (i) the Company is granted rights in Intellectual Property, other
than Intellectual Property generally available on commercial terms

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from other sources, and (ii) the Company has granted rights to others in
Intellectual Property owned or licensed by the Company, are, to the knowledge of
the Company, in full force and effect and, to the knowledge of the Company,
there is no material default by the Company thereto. The Company believes it has
taken all steps required in accordance with sound business practice and business
judgment to establish and preserve its ownership of or rights to all material
Intellectual Property. To the knowledge of the Company, the present business,
activities and products of the Company do not infringe any intellectual property
of any other person, except where such infringement would not have a Material
Adverse Effect. Except as described in the SEC Documents, no proceeding charging
the Company with infringement of any adversely held Intellectual Property has
been filed. To the knowledge of the Company, the Company is not making
unauthorized use of any confidential information or trade secrets of any person.
Neither the Company nor, to the knowledge of the Company, any of its employees
has any agreements or arrangements with any persons other than the Company
related to confidential information or trade secrets of such persons other than
such agreements that would not materially restrict the Company from conducting
its business as currently conducted.

          (k)  There is no material legal or governmental proceeding pending or,
to the knowledge of the Company, threatened, to which the Company is a party or
of which the business or property of the Company is subject that is not
disclosed in the Company's SEC Documents under the heading "Legal Proceedings."
There are no requests for confidential treatment of information currently
pending before the SEC. There is no investigation, inquiry or proceeding by the
SEC of or against the Company currently pending, and, to the Company's
knowledge, no such investigation, inquiry or proceeding has been threatened.

          (l)  Since September 30, 2002, there has not been (i) any Material
Adverse Effect, whether or not arising in the ordinary course of business, (ii)
any obligation, direct or contingent, that is material to the Company, incurred
by the Company, except obligations incurred in the ordinary course of business
consistent with past practice, (iii) any dividend or distribution of any kind
declared, paid or made on the capital stock of the Company, or (iv) any loss or
damage (whether or not insured) to the physical property of the Company which
has been sustained which has had a Material Adverse Effect.

          (m)  Except as set forth in Schedule 2(m), the Company has good and
marketable title to its properties, free and clear of all material security
interests, mortgages, pledges, liens, charges, encumbrances and claims of
record. The properties of the Company are, in the aggregate, in good repair
(reasonable wear and tear excepted), and suitable for their respective uses. To
the Company's knowledge, any real property held under lease by the Company is
held under valid, subsisting and enforceable leases with such exceptions as are
not material and do not interfere with the conduct of the business of the
Company. The Company owns or leases all such properties as are necessary to its
business or operations as now conducted.

          (n)  Except as would not, singly or in the aggregate, reasonably be
expected to have a Material Adverse Effect: (i) the Company is in compliance
with all applicable Environmental Laws (as defined below), (ii) the Company has
all permits, authorizations and approvals required under any applicable
Environmental Laws and is in compliance with the requirements of such permits
authorizations and approvals, (iii) there are no pending or, to the

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knowledge of the Company, threatened Environmental Claims (as defined below)
against the Company, and (iv) under applicable law, there are no circumstances
with respect to any property or operations of the Company that are reasonably
likely to form the basis of an Environmental Claim against the Company. For
purposes of this Agreement, "Environmental Law" means any United States (or
other applicable jurisdiction's) Federal, state, local or municipal statute,
law, rule, regulation, ordinance, code, policy or rule of common law and any
judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, relating to the environment,
health, safety or any chemical, material or substance, exposure to which is
prohibited, limited or regulated by any governmental authority and
"Environmental Claims" means any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance
or violation, investigations or proceedings relating in any way to any
Environmental Law.

          (o)  The Company has filed all material tax returns required to be
filed, which returns are true and correct in all material respects, and the
Company is not in default in the payment of any taxes, including penalties and
interest, assessments, fees and other charges, shown thereon due or otherwise
assessed, other than those being contested in good faith and for which adequate
reserves have been provided or those currently payable without interest which
were payable pursuant to said returns or any assessments with respect thereto.

          (p)  The Company has not taken any action outside the ordinary course
of business designed to or that might reasonably be expected to cause or result
in stabilization or manipulation of the price of the Common Stock to facilitate
the sale or resale of the Common Shares.

          (q)  The Company is not an "investment company" or an "affiliated
person" of, or "promoter" or "principal underwriter" for an investment company,
within the meaning of the Investment Company Act of 1940, as amended.

          (r)  Except as contemplated by Section 4 of this Agreement and except
with respect to up to 286,097 shares of Common Stock that may be held by Johnson
& Johnson Development Corporation, the Company is not under any obligation to
"register" any of its presently outstanding securities or any of its securities
which may hereafter be issued. For the purposes of this Agreement, the term
"register" refers to a registration effected by filing a registration statement
in compliance with the Securities Act (as defined below) or the securities laws
of any state.

          (s)  The Company is not indebted, either directly or indirectly, to
any present or former stockholder, officer or director, or to any of their
respective spouses or children or any of their respective Affiliates (as such
term is defined in Rule 405 under the 1933 Act), in any amount whatsoever,
including, without limitation, any amounts due under any deferred compensation
plan, other than for payment of consulting fees or salaries (but not deferred
fees or salaries) for services rendered, employee benefits and reasonable
expenses incurred on the Company's behalf. Except as disclosed in the SEC
document, no present or former officer, director or stockholder of the Company
(nor any person in the immediate family of any such officer, director or
stockholder) nor any of their respective Affiliates is indebted to the Company
or has any material direct or indirect ownership interest in any firm or
corporation with which the

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Company is affiliated or with which the Company has a business relationship with
the Company or which competes with the Company. To the Company's knowledge, no
officer, director or holder of any of its capital stock or any member of their
immediate families or any of their respective Affiliates, is, directly or
indirectly, interested in any contract with the Company. The Company is not a
guarantor or indemnitor of any indebtedness of any person, firm or corporation.

          (t)  Except as required by this Agreement and except as disclosed in
the SEC Documents, there are no agreements or arrangements between the Company
and any of the Company's stockholders, or to the best of the Company's
knowledge, between or among any of the Company's stockholders, which grant
special rights with respect to any shares of the Company's capital stock or
which in any way affect any stockholder's ability or right freely to alienate or
vote such shares.

     3.   Representations and Warranties of the Purchasers. Each Purchaser for
itself, severally and not jointly, hereby represents and warrants as follows:

          (a)  Such Purchaser represents and warrants to the Company that (i)
the Purchaser has full right, power, authority and capacity to enter into this
Agreement and to consummate the transactions contemplated hereby and has taken
all necessary action to authorize the execution, delivery and performance of
this Agreement, and (ii) this Agreement constitutes a valid and binding
obligation of the Purchaser enforceable against the Purchaser in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors' and
contracting parties' rights generally and except as enforceability may be
subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and except as
the indemnification agreements of the Purchasers herein may be legally
unenforceable.

          (b)  Such Purchaser understands that nothing in this Agreement or any
other materials presented to the Purchaser in connection with the purchase and
sale of the Common Shares constitutes legal, tax or investment advice. Such
Purchaser has consulted such legal, tax and investment advisors as it, in its
sole discretion, has deemed necessary or appropriate in connection with its
purchase of Common Shares.

          (c)  Such Purchaser is acquiring the Common Shares subscribed for
hereunder for its own account as principal, for investment purposes and not with
a view to any distribution thereof in violation of the Securities Act of 1933,
as amended (the "Securities Act"), or any other securities laws. Such Purchaser
further understands and acknowledges that the offer and sale of the Common
Shares to the Purchaser pursuant to this Agreement will not be registered under
the Securities Act or any foreign or state securities laws on the assumption
that the offer and sale of the Common Shares to the Purchasers are exempt from
registration pursuant to Section 4(2) of the Securities Act and Regulation D
thereunder and that the Company's reliance upon such exemption is predicated
upon such Purchaser's representations set forth in the Agreement.

          (d)  Such Purchaser is an "accredited investor" within the meaning of
Rule 501(a) of Regulation D under the Securities Act, and by virtue of such
Purchaser's experience in financial and business matters, is capable of
evaluating the merits and risks of such Purchaser's

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investment in the Common Shares, has the ability to bear the economic risks of
such an investment, including a complete loss of the investment, and has the
capacity to protect the Purchaser's own interests. For purposes of the
requirements of state securities laws, such Purchaser represents that it is
solely a resident of the state set forth opposite its name on Schedule I hereto
and that the offer and purchase of the Common Shares pursuant hereto has and
will occur solely in such state.

          (e)  Such Purchaser acknowledges that the certificates representing
the Common Shares shall bear a legend substantially as set forth below
indicating the restrictions on transfers to which the Common Shares are subject,
and instructions shall be given to the transfer agent for the Common Stock that
no transfer is to be effected except in compliance with such transfer
restrictions:

          THE SHARES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE
          BEEN ISSUED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
          AND APPROPRIATE EXEMPTIONS FROM REGISTRATION UNDER THE SECURITIES LAWS
          OF APPLICABLE JURISDICTIONS. THE SECURITIES MAY NOT BE OFFERED FOR
          SALE, SOLD OR TRANSFERRED OTHER THAN PURSUANT TO AN EFFECTIVE
          REGISTRATION OR AN EXEMPTION FROM REGISTRATION SATISFACTORY TO THE
          ISSUER OF COMPLIANCE WITH THE SECURITIES ACT AND THE APPLICABLE
          SECURITIES LAWS OF ANY OTHER JURISDICTION. THE ISSUER SHALL BE
          ENTITLED TO REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
          IT WITH RESPECT TO COMPLIANCE WITH THE SECURITIES ACT.

          (f)  Because the Common Shares have not been registered under the
Securities Act or applicable foreign or state securities laws, such Purchaser
acknowledges that the economic risk of the investment must be borne indefinitely
by such Purchaser, the Common Shares cannot be sold by the Purchaser unless
subsequently registered under the Securities Act and such laws or unless an
exemption from such registration is available, and while the Company intends to
file a registration statement covering the Common Shares for public resale as
set forth in Section 4 below, there is no assurance that the Common Shares will
in fact be so registered.

          (g)  Such Purchaser hereby acknowledges that the Company has made
available to such Purchaser such books, records, corporate documents and all
other information as Purchaser has requested and considers necessary to
evaluating the merits and risks of an investment in the Common Shares. Each
Purchaser acknowledges that it has been afforded the opportunity to ask
questions concerning the Company and has received satisfactory answers thereto,
to obtain all additional information that it has requested and to request and
receive all documents concerning the Company and the terms and conditions of
such Purchaser's investment. Such Purchaser acknowledges that it has not been
offered the Common Shares by

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any means of general solicitation or advertisement, and that no commission or
sales charge is payable by the Purchaser to any third party in connection with
the purchase of the Common Shares.

          (h)  Such Purchaser recognizes that investment in the Common Shares
involves a high degree of risk. In evaluating the suitability of an investment
in the Common Shares, such Purchaser has not (i) relied upon any representations
or other information (whether oral or written) other than (A) the
representations and warranties set forth in this Agreement, (B) the documents
and answers to questions furnished to such Purchaser by the Company (or its
designated representatives) and (C) the Company' filings made pursuant to the
Exchange Act, or (ii) relied upon any projections or predictions as to the
future business or financial performance of the Company which the Company has
not disclosed to the public. Such Purchaser is aware that no federal or state
agency has made any finding or determination as to the fairness of the Common
Shares for investment, nor any recommendation or endorsement of the Common
Shares.

     4.   Registration Rights.

          (a)  Initial Registration. No later than 45 days following the Closing
Date, the Company shall prepare and file with the SEC (and such state securities
commissions as may be necessary or appropriate to permit the registration of the
Common Shares (and any other shares of Common Stock that the Company is required
to register) in all 50 states and the District of Columbia) a registration
statement on Form S-3 (or such other form as the Company deems appropriate) (the
"Registration Statement") to effect the registration under the Securities Act
and relevant state securities laws of the Common Shares in connection with the
disposition of the Common Shares by the Purchasers, from time to time in the
open market, in one or more transactions (which may involve block transactions),
in negotiated, underwritten, or other transactions or through a combination of
such methods of sale, at market prices prevailing at the time of sale, at prices
relating to such prevailing market prices or at negotiated prices. The Company
shall use its reasonable best efforts to obtain effectiveness of the
Registration Statement as soon as practicable, but in no event later than 120
days following the Closing Date (the "Effectiveness Deadline"), and shall notify
the Purchasers promptly upon the Registration Statement being declared effective
by the SEC.

          All expenses of the Company associated with the preparation of the
Registration Statement and the filing thereof shall be borne by the Company,
including the payment of any applicable listing, blue sky compliance and
printing fees. The Purchasers shall be responsible for fees and expenses of
their own counsel and any broker fees and commissions or underwriting discounts,
and transfer taxes, if any, payable with respect to any resale of the Common
Shares. In connection with the Registration Statement, but subject to the
limitations of Section 4(b) hereof, the Company will prepare and file with the
SEC and any state securities commissions such amendments and supplements to the
Registration Statement and the prospectus used in connection therewith as may be
necessary to keep such Registration Statement effective and to comply with the
provisions of the Securities Act and Rule 415 thereunder with respect to the
disposition of all the Common Shares covered by such Registration Statement.
Notwithstanding the foregoing, the Company will only be required to maintain the
effectiveness of the Registration Statement with respect to the Common Shares
registered thereunder for resale by

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the Purchasers, until the earlier of (i) such time as all of such Common Shares
have been disposed of in accordance with the intended methods of disposition by
the Purchasers set forth in such Registration Statement, (ii) such date on which
each of the Purchasers may dispose of all of the Common Shares held by it in one
transaction in the open market pursuant to Rule 144(k) under the Securities Act,
or (iii) two years from the effective date of the Registration Statement.

          The Company shall furnish to each Purchaser such number of copies of
the Registration Statement and of each amendment and supplement thereto, such
number of copies of the prospectus included in such Registration Statement and
such other related documents as such Purchaser may reasonably request in order
to facilitate the disposition of the Common Shares by such Purchaser.

          (b)  Information from Purchasers. Each Purchaser shall furnish to the
Company such information regarding each such Purchaser and its proposed method
of distribution of the Common Shares as the Company may from time to time
request and as shall be required by law to effect and maintain the registration
of such Common Shares under the Securities Act and any state securities laws.

          (c)  Agreements of the Company. The Company shall use reasonable
efforts to (i) register and qualify the Common Shares under such other
securities or "blue sky" laws of such jurisdictions in the United States as the
Purchasers shall reasonably request, and (ii) prepare and file in those
jurisdictions such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the effectiveness of the Registration
Statement; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to (A) qualify to do business in
any jurisdiction where it would not otherwise be required to qualify but for
this Section 4(c), (B) subject itself to general taxation in any jurisdiction,
(C) file a general consent to service of process in any such jurisdiction, (D)
provide any undertakings that cause the Company undue expense or burden, or (E)
make any change in its charter or bylaws, which in each case the Company's Board
of Directors determines to be contrary to the best interests of the Company and
its shareholders.

          (d)  Transfer of Common Shares After Registration; Suspension.

               (i)    The Purchaser agrees that it will not effect any
disposition of the Common Shares or its right to purchase the Common Shares that
would constitute a sale within the meaning of the Securities Act except as
contemplated in the Registration Statement referred to in Sections 4(a) and (b)
and as described below or as permitted by the Securities Act, and that it will
promptly notify the Company of any changes in the information set forth in the
Registration Statement regarding the Purchaser or its plan of distribution.

               (ii)   Except in the event that paragraph (iii) below applies,
the Company shall: (A) if deemed necessary by the Company, prepare and file from
time to time with the SEC a post-effective amendment to the Registration
Statement or a supplement to the related prospectus or a supplement or amendment
to any document incorporated therein by reference or file any other required
document so that such Registration Statement will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated

                                       -10-

<PAGE>

therein or necessary to make the statements therein not misleading, and so that,
as thereafter delivered to purchasers of the Common Shares being sold
thereunder, such prospectus will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading; (B) provide the Purchaser copies of any documents
filed pursuant to Section 4(d)(ii)(A); and (C) inform each Purchaser that the
Company has complied with its obligations in Section 4(d)(ii)(A) (or that, if
the Company has filed a post-effective amendment to the Registration Statement
which has not yet been declared effective, the Company will notify the Purchaser
to that effect, will use its reasonable efforts to secure the effectiveness of
such post-effective amendment as promptly as possible and will promptly notify
the Purchaser pursuant to Section 4(d)(ii)(A) hereof when the amendment has
become effective).

               (iii)  Subject to paragraph (iv) below, in the event: (A) of any
request by the SEC or any other federal or state governmental authority during
the period of effectiveness of the Registration Statement for amendments or
supplements to a Registration Statement or related prospectus or for additional
information; (B) of the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose;
(C) of the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the
Common Shares for sale in any jurisdiction or the initiation of any proceeding
for such purpose; or (D) of any event or circumstance which necessitates the
making of any changes in the Registration Statement or prospectus, or any
document incorporated or deemed to be incorporated therein by reference, so
that, in the case of the Registration Statement, it will not contain any untrue
statement of a material fact or any omission to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and that in the case of the prospectus, it will not contain any untrue statement
of a material fact or any omission to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; then the Company shall
immediately deliver a certificate in writing to the Purchaser (the "Suspension
Notice") to the effect of the foregoing and, upon receipt of such Suspension
Notice, the Purchaser will refrain from selling any Common Shares pursuant to
the Registration Statement (a "Suspension") until the Purchaser's receipt of
copies of a supplemented or amended prospectus prepared and filed by the
Company, or until it is advised in writing by the Company that the current
prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in any such prospectus. In the event of any Suspension, the Company will use its
best efforts to cause the use of the prospectus so suspended to be resumed as
soon as reasonably practicable within 30 calendar days after delivery of a
Suspension Notice to the Purchasers. In addition to and without limiting any
other remedies (including, without limitation, at law or at equity) available to
the Purchaser, the Purchaser shall be entitled to specific performance in the
event that the Company fails to comply with the provisions of this Section
4(d)(iii).

               (iv)   Notwithstanding the foregoing paragraphs of this 4(d), the
Purchaser shall not be prohibited from selling Common Shares under the
Registration Statement as a result of Suspensions on more than four occasions of
not more than 30 days each in any twelve month period.

                                       -11-

<PAGE>

               (v)    If a Suspension is not then in effect, the Purchaser may
sell Common Shares under the Registration Statement, provided that the Purchaser
arranges for delivery of a current prospectus to the transferee of such Common
Shares. Upon receipt of a request therefor, the Company agrees to provide an
adequate number of current prospectuses to the Purchaser and to supply copies to
any other parties requiring such prospectuses.

          (e)  Failure to Become Effective On or Prior to the Effectiveness
Deadline. The Company and the Purchasers agree that the Purchasers will suffer
damages if the Registration Statement is not declared effective by the SEC on or
prior to the Effectiveness Deadline. The Company and the Purchasers further
agree that it would not be feasible to ascertain the extent of such damages with
precision. Accordingly, if the Registration Statement is not declared effective
by the SEC on or prior to the Effectiveness Deadline, the Company shall pay as
liquidated damages for such failure and not as a penalty (the "Liquidated
Damages") to each Purchaser an amount equal to one percent (1%) of the total
purchase price paid by such Purchaser pursuant to Section 1 hereof for each 30
day period after the Effectiveness Deadline, pro rated for any period less than
30 days, following the Effectiveness Deadline until the Registration Statement
has been declared effective by the SEC. Payments to be made pursuant to this
Section 4(e) shall be due and payable in cash to a Purchaser immediately upon
demand of such Purchaser. The parties agree that the Liquidated Damages
represent a reasonable estimate on the part of the parties, as of the date of
this Agreement, of the amount of damages that may be incurred by the Purchasers
if the Registration Statement has not been declared effective by the SEC on or
prior to the Effectiveness Deadline.

          (f)  Indemnification.

               (i)    To the extent permitted by law, the Company will indemnify
each Purchaser and each person (including each officer, director or partner
thereof) who controls the Purchaser within the meaning of Section 15 of the
Securities Act with respect to which any registration statement under the
Securities Act has been filed and become effective pursuant to this Agreement,
against all claims, losses, expenses, damages and liabilities (or actions in
respect thereto) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any definitive prospectus
contained in any registration statement, as may be amended or supplemented,
covering the Common Shares for resale, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading and for any material misrepresentation or
breach of any representation or warranty given or made by the Company in this
Agreement, and will reimburse each such Purchaser and each person (including
each officer, director or partner thereof) who controls the Purchaser within the
meaning of Section 15 of the Securities Act for any reasonable legal and any
other expenses incurred in connection with investigating, defending or settling
any such claim, loss, damage, liability or action, provided that (A) such legal
and other expenses shall be limited to not more than one legal counsel for the
Purchasers and each person (including each officer, director or partner thereof)
who controls the Purchaser within the meaning of Section 15 of the Securities
Act, and (B) the Company will not be liable in any such case to the extent that
(x) any such claim, loss, damage or liability arises out of or is based on any
untrue statement (or alleged untrue statement) or omission (or alleged omission)
based upon written information furnished to the Company by such Purchaser
specifically for use in such prospectus, or (y) the

                                       -12-

<PAGE>

Purchaser or its representative fail to deliver a copy of the definitive
prospectus contained in any such registration statement, as may be amended or
supplemented, to the buyer of any Common Shares.

               (ii)   To the extent permitted by law, each Purchaser will
indemnify the Company and each person (including each officer and director
thereof) who controls the Company within the meaning of Section 15 the
Securities Act, and each other such Purchaser and each person (including each
officer, director and partner thereof) who controls the Purchaser within the
meaning of Section 15 of the Securities Act against all claims, losses,
expenses, damages and liabilities (or actions in respect thereof) arising out of
or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any such prospectus, or any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading, and will reimburse the Company, such Purchaser and each
person (including directors, officers or partners thereof) who controls the
Company or such Purchaser within the meaning of Section 15 of the Securities Act
for any reasonable legal or any other expenses incurred in connection with
investigating, defending or settling any such claim, loss, damage, liability or
action, in each case to the extent, but only to the extent, that such untrue
statement (or alleged untrue statement) or omission (or alleged omission) is
made in such prospectus in reliance upon and in conformity with written
information furnished to the Company by such Purchaser specifically for use
therein.

               (iii)  Each party entitled to indemnification under this Section
4(f) (the "Indemnified Party") shall give notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations hereunder, unless such failure prejudiced
the rights of the Indemnifying Party. No Indemnifying Party, in the defense of
any such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation.

               (iv)   In order to provide for just and equitable contribution to
joint liability under the Securities Act in any case in which any person or
entity entitled to indemnification under Section 4(f) makes a claim for
indemnification pursuant to this Section 4(f) but it is judicially determined
(by entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact
that this Section 4(f) provides for indemnification in such case; then, and in
such case, the party that would otherwise be required to indemnify under Section
4(f) will contribute to the aggregate losses, claims, damages or liabilities to
which the other parties may be subject (after contribution from others)

                                       -13-

<PAGE>

in such proportion as is appropriate to reflect the relative fault of the
parties in connection with the losses suffered, as well as any other relevant
equitable considerations.

          (g)  Rule 144. The Company covenants that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the SEC thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act and,
for so long as any Common Shares may not be sold under Rule 144(k) under the
Securities Act. The Company further covenants that it will use its reasonable
best efforts to take such further action as any Purchaser may reasonably
request, all to the extent required from time to time to enable such holder to
sell Common Shares without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 under the Securities Act,
as such rule may be amended from time to time, or (b) any similar rule or
regulation hereafter adopted by the SEC.

          (h)  The Company has not, as of the date hereof, and the Company shall
not, after the date of this Agreement, enter into any agreement with respect to
any of its securities that is inconsistent with the rights granted to the
Purchasers under this Agreement or otherwise conflicts with the provisions
hereof.

     5.   Information Rights. At such time as the Company is not subject to the
reporting requirements of the Exchange Act, and so long as the aggregate number
of Common Shares then beneficially owned (as determined pursuant to Rule 13d-3
under the Exchange Act) by a Purchaser is not less than 50% of the sum of the
initial number of Common Shares purchased by such Purchaser hereunder, the
Company shall deliver the following to such Purchaser:

          (a)  As soon as available, and in any event within 45 days after the
end of each of the first three quarters in each fiscal year of the Company,
unaudited consolidated statements of income, cash flows and shareholders' equity
for such quarterly period and for the period from the beginning of the then
current fiscal year to the end of such quarterly period, and an unaudited
consolidated balance sheet of the Company as at the end of such quarterly
period, in each case setting forth in comparative form consolidated figures for
the corresponding periods in the preceding fiscal year, all in reasonable
detail, prepared by the Company in accordance with generally accepted accounting
principles consistently followed throughout the periods involved, subject to
normal year-end adjustments, and certified by the principal financial officer of
the Company and accompanied by a written discussion of operations in summary
form with respect to such quarterly period.

          (b)  As soon as available, and in any event within 90 days after the
end of each fiscal year of the Company, consolidated statements of income, cash
flows and shareholders' equity for such fiscal year, and a consolidated balance
sheet of the Company as at the end of such year, in each case setting forth in
comparative form consolidated figures for the preceding fiscal year, prepared by
the Company in accordance with generally accepted accounting principles
consistently followed throughout the periods involved, and certified by KPMG LLP
or another nationally recognized firm of independent public accountants, and
accompanied by a written discussion of operations in summary form with respect
to such fiscal year.

                                       -14-

<PAGE>

     6.   Notices. All notices, demands, requests, or other communications which
may be or are required to be given, served, or sent by any party to any other
party pursuant to this Agreement shall be in writing and shall be mailed by
first-class, registered or certified mail, return receipt requested, postage
prepaid, or transmitted by hand delivery, overnight or express mail, facsimile,
telegram or telex, addressed as follows:

               If to the Company:

               Neose Technologies, Inc.
               102 Witmer Road
               Horsham, Pennsylvania 19044
               Fax No.: (215) 315-9100
               Attention:   C. Boyd Clarke
                            President and Chief Executive Officer

               with copies (which shall not constitute notice) to:

               Neose Technologies, Inc.
               102 Witmer Road
               Horsham, Pennsylvania 19044
               Fax No.: (215) 315-9100
               Attention:   General Counsel

               and

               Pepper Hamilton LLP
               3000 Two Logan Square
               Eighteenth and Arch Streets
               Philadelphia, PA 19103-2799
               Attention: Barry M. Abelson, Esq.

               If to Purchasers:

               The address listed under each Purchaser's name on Schedule I
hereto.

Each party may designate by notice in writing a new address to which any notice,
demand, request or communication may thereafter be so given, served or sent.
Each notice, demand, request, or communication which shall be mailed, delivered
or transmitted in the manner described above shall be deemed sufficiently given,
served, sent and received for all purposes at such time as it is delivered to
the addressee (with the return receipt, the delivery receipt, the affidavit of
messenger or (with respect to a facsimile or telex) the answer back being deemed
conclusive evidence of such delivery) or at such time as delivery is refused by
the addressee upon presentation.

     7.   Publicity. The Company and the Purchasers shall notify each other
prior to issuing any press releases or otherwise making any news release or
other public announcement

                                       -15-

<PAGE>

with respect to the transactions contemplated hereby, other than as required in
connection with any filings with any federal or state governmental or regulatory
agency with respect thereto, and in no event will the Purchasers issue any such
release or make any such public announcement without the prior approval of the
Company. Notwithstanding the foregoing, the Purchasers hereby agree that the
Company may issue a press release with regard to the subject matter of this
Agreement on or after the Closing Date without providing the Purchasers with the
notification required by this Section 7.

     8.   Legal Opinion of Company Counsel. On or before the Closing Date, the
Company shall deliver to each Purchaser an opinion of Pepper Hamilton LLP,
counsel to the Company, in form attached hereto as Exhibit A.

     9.   Miscellaneous.

          (a)  This Agreement constitutes the entire agreement between the
parties hereto with respect to the transactions contemplated herein, and the
Agreement supersedes and terminates all prior oral or written agreements,
commitments or understandings with respect to the matters provided for herein.

          (b)  No amendment or modification hereof shall be binding unless set
forth in writing and duly executed by the Company and Purchasers holding a
majority of the Common Shares purchased hereunder. This Agreement and the rights
and obligations of the parties hereunder may not be assigned without the prior
written consent of the other parties hereto. Whenever any action, waiver or
consent of Purchasers hereunder (collectively, "Action") is required or
permitted to be done, made or given by a majority of the Purchasers, such Action
shall have been duly approved in accordance with the terms of this Agreement, if
the Purchasers holding a majority of Common Shares acquired under this Agreement
consent to or approve such Action.

          (c)  The representations or warranties of the Purchasers and the
Company contained herein shall survive the execution and delivery of this
Agreement and consummation of the transactions contemplated hereby.

          (d)  Each of the Purchasers and the Company agrees to take such
further actions and to execute and deliver such further instruments as may
reasonably be necessary from time to time in order to fully effectuate the
purposes, terms and conditions of this Agreement.

          (e)  For purposes of this Agreement, the term "business day" shall
mean any day other than a Saturday, Sunday or a day on which banking
institutions in the Commonwealth of Pennsylvania are authorized or obligated by
law or executive order to close. For purposes of this Agreement, the term
"trading day" shall mean any day on which the Nasdaq Stock Market or the
principal securities exchange or quotation system on which the Common Stock is
traded is open for regular trading. For the purposes of this Agreement, the
phrase "to the knowledge of the Company" or "to the Company's knowledge" shall
mean to the actual knowledge of any of the persons holding the following
executive offices of the Company: President and Chief Executive Officer; Senior
Vice President and Chief Financial Officer; Vice President, Finance; Senior Vice
President, General Counsel and Secretary; Senior Vice President, Pharmaceutical

                                       -16-

<PAGE>

Development; Executive Vice President, Research and Development; Senior Vice
President, Business and Commercial Development; and Vice President, Regulatory
and Project Management.

          (f)  This Agreement shall be enforced, governed and construed in
accordance with the laws of the Commonwealth of Pennsylvania. The parties hereby
expressly agree that all claims in respect of this Agreement shall be brought in
the state and federal courts of the Commonwealth of Pennsylvania, the parties
hereby irrevocably submit to the jurisdiction of such courts for purposes of any
such action and the parties hereby expressly waive the right to a jury trial in
connection with any such action. The Purchasers acknowledge that any breach or
threatened breach by a Purchaser of the terms of this Agreement would cause
irreparable harm to the Company which would not be compensable by money damages
alone, and the Purchasers agree that the Company shall have the right to enforce
this Agreement and any such terms by injunction, specific performance or other
equitable relief in order to prevent or restrain any such breach by a Purchaser.

          (g)  This Agreement and the rights, power and duties set forth herein
shall be binding upon the Purchasers and the Company, their successors and
assigns, and shall inure to the benefit of the Company and the Purchasers,
respectively. Failure of the Purchasers or the Company to exercise any right or
remedy under this Agreement, or a delay by the Purchasers or the Company in
exercising the same, will not operate as a waiver thereof. No waiver by the
Purchasers or the Company will be effective unless and until it is in writing
and signed by the party whose consent is required by the terms hereof.

          (h)  It is the explicit intention of the parties hereto that no person
or entity other than the parties hereto is or shall be entitled to bring any
action to enforce any provision of this Agreement against any of the parties
hereto, and that the covenants, undertakings and agreements set forth in this
Agreement shall be solely for the benefit of, and shall be enforceable only by,
the parties hereto or their respective successors and assigns as permitted
hereunder.

          (i)  If any provision or clause of this Agreement shall for any reason
be held to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement, but
this Agreement shall be construed as if such provision or clause had never been
contained in the Agreement, and there shall be deemed substituted therefor such
other provision or clause as will most nearly accomplish the intent of the
parties as expressed in this Agreement to the fullest extent permitted by law.

          (j)  This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original or a photocopy or facsimile of an original
and all of which together shall constitute one and the same document.

                                       -17-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, or have caused this Agreement to be executed, as of the date written
below.

Date:  February 13, 2003

NEOSE TECHNOLOGIES, INC.

By: /s/ C. Boyd Clarke
   -------------------
   Name:  C. Boyd Clarke
   Title: CEO

                                       -18-

<PAGE>

PURCHASERS:

BLACK BEAR FUND I, L.P., a California limited partnership
By Eastbourne Capital Management, L.L.C., its general partner

By: /s/ Eric M. Sippel
   -------------------
       Eric M. Sippel
       Chief Operating Officer

BLACK BEAR FUND II, L.L.C., a California limited liability company
By Eastbourne Capital Management, L.L.C., its manager

By: /s/ Eric M. Sippel
   -------------------
       Eric M. Sippel
       Chief Operating Officer

BLACK BEAR OFFSHORE MASTER FUND LIMITED, a Cayman Islands exempted company
By Eastbourne Capital Management, L.L.C., its manager

By: /s/ Eric M. Sippel
   -------------------
       Eric M. Sippel
       Chief Operating Officer

                                       -19-

<PAGE>

CADUCEUS CAPITAL TRUST
By Sven H. Borho, General Partner of the General Partner

By: /s/Sven H. Borho
   -----------------
        Sven H. Borho
        General Partner

CADUCEUS CAPITAL II, L.P.
By Sven H. Borho, General Partner of the General Partner

By: /s/Sven H. Borho
   -----------------
        Sven H. Borho
        General Partner

PW EUCALYPTUS FUND, L.L.C.
By Sven H. Borho, General Partner of the JV Partner

By: /s/Sven H. Borho
   -----------------
        Sven H. Borho
        General Partner

PW EUCALYPTUS FUND, LTD.
By Sven H. Borho, General Partner of the JV Partner

By: /s/Sven H. Borho
   -----------------
        Sven H. Borho
        General Partner

                                       -20-

<PAGE>

George W. Haywood

By: /s/ George W. Haywood
   ----------------------
        George W. Haywood
        Private Investor

                                       -21-

<PAGE>

DOMAIN PARTNERS V, L.P.
By:    One Palmer Square Associates V, L.L.C.,
       its General Partner

By: /s/Kathleen K. Schoemaker
   --------------------------
       Kathleen K. Schoemaker
       Managing Member

DP V ASSOCIATES, L.P.
By:    One Palmer Square Associates V, L.L.C.
       its General Partner

By: /s/Kathleen K. Schoemaker
   --------------------------
       Kathleen K. Schoemaker
       Managing Member

                                       -22-

<PAGE>

BAYSTAR CAPITAL II, LP

By: /s/ Steven M. LaMar
   --------------------
        Steven M. LaMar
        Chief Financial Officer

BAYSTAR INTERNATIONAL II LTD.

By: /s/ Steven M. LaMar
   --------------------
        Steven M. LaMar
        Chief Financial Officer

                                       -23-

<PAGE>

ROYAL BANK OF CANADA
By:  RBC DOMINION SECURITIES CORPORATION, acting as agent

By: /s/ Steven C. Milke
   --------------------
        Name:  Steven C. Milke
        Title: Managing Director

By: /s/ Richard J. Tavoso
   ----------------------
        Name:  Richard J. Tavoso
        Title: Managing Director

                                       -24-

<PAGE>

KOPP EMERGING GROWTH FUND
By:     Kopp Investment Advisors, Inc.
Its:    Investment Manager

By: /s/ Steven F. Crowley
   ----------------------
        Name:   Steven F. Crowley
        Title:  Senior Vice President

                                       -25-

<PAGE>

                                   SCHEDULE I

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
      Name and Address of                       Purchase Commitment                     State of Residence
                                                -------------------                     ------------------
          Purchaser
          ---------
-------------------------------------------------------------------------------------------------------------------
<S>                                             <C>                                 <C>
Black Bear Fund I, L.P.                         $  593,568                          California
c/o Eastbourne Capital Management, L.L.C.
1101 Fifth Avenue, Suite 160
San Rafael, CA 94901
-------------------------------------------------------------------------------------------------------------------
Black Bear Fund II, L.L.C.                      $   98,580                          California
c/o Eastbourne Capital Management, L.L.C.
1101 Fifth Avenue, Suite 160
San Rafael, CA 94901
-------------------------------------------------------------------------------------------------------------------
Black Bear Offshore Master Fund Limited         $1,807,848                          Cayman Islands
c/o Eastbourne Capital Management, L.L.C.
1101 Fifth Avenue, Suite 160
San Rafael, CA 94901
-------------------------------------------------------------------------------------------------------------------
Caduceus Capital Trust                          $  734,500                          British Virgin Islands
c/o OrbiMed Advisors LLC
767 Third Avenue, 30/th/ Floor
New York, NY 10017
Attn:  Andrew Kanarek
-------------------------------------------------------------------------------------------------------------------
Caduceus Capital II, L.P.                       $  357,500                          Delaware
c/o OrbiMed Advisors LLC
767 Third Avenue, 30/th/ Floor
New York, NY 10017
Attn:  Andrew Kanarek
-------------------------------------------------------------------------------------------------------------------
PW Eucalyptus Fund, L.L.C.                      $  806,000                          Delaware
c/o OrbiMed Advisors LLC
767 Third Avenue, 30/th/ Floor
New York, NY 10017
Attn:  Andrew Kanarek
-------------------------------------------------------------------------------------------------------------------
PW Eucalyptus Fund, Ltd.                        $  104,000                          Cayman Islands
c/o OrbiMed Advisors LLC
767 Third Avenue, 30/th/ Floor
New York, NY 10017
Attn:  Andrew Kanarek
-------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       -26-

<PAGE>

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------------
      Name and Address of                       Purchase Commitment                     State of Residence
                                                -------------------                     ------------------
          Purchaser
          ---------
-------------------------------------------------------------------------------------------------------------------
<S>                                             <C>                                 <C>
George W. Haywood                              $ 1,000,000                          New York
c/o Cronin & Vris, LLP
380 Madison Avenue, 27/th/ Floor
New York, NY 10017
-------------------------------------------------------------------------------------------------------------------
Domain Partners V, L.P.                        $ 5,567,088                          Delaware
One Palmer Square
Suite 515
Princeton, NJ 08542
-------------------------------------------------------------------------------------------------------------------
DP V Associates, L.P.                          $   131,508                          Delaware
One Palmer Square
Suite 515
Princeton, NJ 08542
-------------------------------------------------------------------------------------------------------------------
Royal Bank of Canada                           $ 2,500,000                          New York
c/o RBC Dominion Securities Corporation
1 Liberty Plaza
165 Broadway
New York, NY 10006
-------------------------------------------------------------------------------------------------------------------
BayStar Capital II, LP                         $ 1,350,000                          Delaware
80 East Sir Francis Drake Blvd.,
Suite 2B
Larkspur, CA 94939
-------------------------------------------------------------------------------------------------------------------
BayStar International II Ltd                   $   150,000                          British Virgin Islands
80 East Sir Francis Drake Blvd.,
Suite 2B
Larkspur, CA 94939
-------------------------------------------------------------------------------------------------------------------
Kopp Emerging Growth Fund                      $ 2,000,000                          Minnesota
c/o Kopp Investment Advisors
7701 France Avenue South,
Suite 5000
Edina, MN 55435
-------------------------------------------------------------------------------------------------------------------
TOTAL                                          $17,200,592
-------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       -27-

<PAGE>

                                  SCHEDULE 2(m)

     Montgomery County (Pennsylvania) Industrial Development Authority Bonds

     In 1997, we issued, through the Montgomery County (Pennsylvania) Industrial
Development Authority, $9.4 million of taxable and tax-exempt bonds. The bonds
are supported by an AA-rated letter of credit, and a reimbursement agreement
between our bank and the letter of credit issuer. The interest rate on the bonds
will vary weekly, depending on market rates for AA-rated taxable and tax-exempt
obligations, respectively.

     The terms of the bond issuance provide for monthly, interest-only payments
and a single repayment of principal at the end of the twenty-year life of the
bonds. However, under our agreement with our bank, we are making monthly
payments to an escrow account to provide for an annual prepayment of principal.

     To provide credit support for this arrangement, we have given a first
mortgage on land, building, improvements, and certain machinery and equipment to
our bank. We have also agreed to maintain a minimum required cash and short-term
investments balance of at least two times the current loan balance. If we fail
to comply with this covenant, we are required to deposit with the lender cash
collateral up to, but not more than, the unpaid balance of the loan, which was
$5.1 million as of December 31, 2002.

  Equipment Financings

     During 2002, we borrowed an aggregate of $2.3 million to finance the
purchase of laboratory equipment. The terms of the financings are as follows:

          .    8% Equipment Loan. We borrowed $2.2 million at an annual interest
               rate of 8%, secured by laboratory equipment. We are committed to
               make monthly principal and interest payments over a three-year
               period ending February 2006.
          .    6.2% Equipment Loan. We borrowed $0.1 million at an annual
               interest rate of 6.2%, secured by computer equipment. We are
               committed to make monthly principal and interest payments over a
               three-year period ending November 2005.

                                       -28-

<PAGE>

                                    EXHIBIT A

                              FORM OF LEGAL OPINION

     (i)    The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Delaware. The Company has the
corporate power and corporate authority to enter into, execute, deliver and
perform the Agreement.

     (ii)   The Agreement has been duly authorized, executed and delivered by
the Company and constitutes the legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except
that we express no opinion as to the validity or enforceability of the
indemnification and contribution provisions of the Agreement.

     (iii)  The execution and delivery by the Company of the Agreement, the
performance by the Company of its obligations thereunder and the issuance, sale
and delivery of the Common Shares will not (a) violate any provision of any law
applicable to the Company or the Certificate of Incorporation, the Certificate
of Designation or the Bylaws of the Company, or (b) violate any law, rule,
regulation, judgment, injunction, decree, determination, award or order of any
court or governmental agency or instrumentality.

     (iv)   The Common Shares have been duly authorized, and when issued,
delivered and paid for in accordance with the terms of the Agreement, will be
validly issued, fully paid and nonassessable. To our knowledge, the Common
Shares are free of preemptive or similar rights restricting the transfer of the
Common Shares or entitling any person to acquire the Common Shares from the
Company.

     (v)    Assuming the accuracy and completeness of all representations and
warranties made by the Purchasers under the Agreement, the sale and issuance of
the Common Shares are exempt from the registration requirements of Section 5 of
the Securities Act of 1933, as amended, subject to the filing of a Form D
pursuant to Regulation D as promulgated by the Securities and Exchange
Commission.

     (vi)   The Company is not an "investment company" within the meaning of
such term under the Investment Company Act of 1940, as amended, and the rules
and regulations promulgated thereunder.

                                       -29-Sale and Purchase Agreement

  Exhibit 10.1
 SALE AND PURCHASE
AGREEMENT
 THIS AGREEMENT is made and entered into this 19th day of February, 2003, by and among:
 WYNN-CROSBY 1998, LTD. (“WC98”), a Texas limited partnership; and WYNN-CROSBY 1999, LTD. (“WC99”), a Texas limited partnership; (referred to herein collectively as
“SELLERS” or singularly as “SELLER”); and
 PATINA OKLAHOMA CORP., a Delaware corporation, and a wholly owned subsidiary of PATINA OIL &
GAS CORPORATION, a Delaware corporation; (referred to herein as “PURCHASER”).
 LeNORMAN PARTNERS, LLC (herein referred to as “LNP”) is a
limited liability company organized and existing pursuant to the laws of the State of Oklahoma, created pursuant to Articles of Organization dated April 25, 2000. The members of LNP are WC98, WC99 and PATINA OKLAHOMA CORP. (successor to LeNORMAN
ENERGY CORPORATION).
 PATINA OKLAHOMA CORP., WYNN-CROSBY ENERGY, INC., WC98 and WC99 entered into and executed an Operating Agreement effective as of
May 1, 2000, and a 1st Amendment thereto effective as of such date (collectively the “OPERATING AGREEMENT”), for the management and operation of LNP. WYNN-CROSBY ENERGY, INC., PATINA OKLAHOMA CORP. and LNP entered into and executed an
Operations Agreement dated May 3, 2000 (the “OPERATIONS AGREEMENT”) further with respect to the operation and
 

1

  management of LNP. Such OPERATING AGREEMENT and such OPERATIONS AGREEMENT are in full force and effect.
 Each SELLER has represented to PURCHASER, without warranty except as is hereinafter expressly stated, that it owns and holds the membership interest and Sharing Ratio defined and credited to it in
the OPERATING AGREEMENT in and to LNP and under the OPERATING AGREEMENT and that it has the right, power and authority to sell and assign to PURCHASER all of the properties, interests and assets herein provided to be sold and assigned by
it.
 Attached as Appendix I hereto is a schedule in which there are described various oil and gas properties and interests. The properties and interests so
described are referred to herein in the aggregate as the “LNP PROPERTIES.” The LNP PROPERTIES include the aggregate undivided interest in and to the particular LNP PROPERTIES set forth on such schedule and being the Working Interest
percentage (expressed as a decimal numeral on Appendix I) in and to the Wells and Lease(s) described on Appendix I insofar as such Lease(s) cover the Lands described on Appendix I. Also included in Appendix I, in separate enumerated sections
corresponding to the letters below, are the following items related to the LNP PROPERTIES:
 (a)       inventory, including tubulars and equipment;
 (b)       gas imbalances;
 (c)       real property and improvements thereon;
 (d)       hedging instruments and terms hereof; 
 (e)       operating leases, including vehicles and equipment;
 

2

  (f)       bonds in place and a description of the amount,
payee and terms thereof; and
 (g)       debt, including letters of credit and
capital leases, and terms thereof.
 The ownership interests set forth in Appendix I entitle LNP to not less than the Net Revenue Interest percentage (expressed
as a decimal numeral) in and to oil, gas and other minerals produced, saved and marketed from the lands covered by the oil and gas leases described on Appendix I or the proceeds attributable to the sale thereof, without reduction, suspension or
termination, and LNP shall not be obligated to bear any greater costs than the corresponding Working Interest attributable to such Net Revenue Interest. Attached as Appendix II is a schedule on which a portion of the PURCHASE PRICE is allocated to
each of the LNP PROPERTIES. For all purposes of this Agreement, each LNP PROPERTY shall have the value allocated to it on such Appendix II.
 PURCHASER desires
to purchase and acquire all of the CONTRACT INTERESTS hereinafter defined, on the terms and conditions and subject to the limitations hereinafter set forth.
 NOW, THEREFORE, for the mutual covenants and promises contained herein and for the benefits to be derived by each party hereunder, SELLERS and PURCHASER have COVENANTED and AGREED, and by these presents do COVENANT and AGREED, as
follows:
 I
 Basic Terms
 A.       Sale and Purchase. Subject to the succeeding provisions hereof, each SELLER agrees to sell to
PURCHASER, and PURCHASER agrees to purchase and to pay to SELLERS
 

3

  therefor the consideration hereinafter provided, all of the membership interest of the particular SELLER in LNP, including the LNP PROPERTIES and all rights
thereto, and in and to the income, revenue and distributions therefrom, and all claims, demands, causes of action, accounts, economic rights, contract rights and general intangibles, however existing and whether now existing or hereafter arising
under, the Articles of Organization of LNP and the OPERATING AGREEMENT (all of which are referred to herein collectively as the “CONTRACT INTERESTS”).
 B.       Purchase Price. As the PURCHASE PRICE for the CONTRACT INTERESTS, PURCHASER will pay to SELLERS the aggregate sum of Eighteen Million Five Hundred Thousand
Dollars ($18,500,000), in cash, at the Closing hereinafter provided.
 C.       Sales
Taxes. PURCHASER shall bear and pay all sales taxes occasioned by the sale of the CONTRACT INTERESTS pursuant to this Agreement.
 D.       Waivers. If the Closing of the sale or purchase herein provided is effected, then contemporaneous with the Closing, the parties to this Agreement waive any and all rights, claims
or causes of action that have arisen or may arise out of the OPERATIONS AGREEMENT or the OPERATING AGREEMENT against any other party to this Agreement or LNP.
 II
 Representations and Warranties of SELLERS
 A.       Representations and Warranties. Each SELLER warrants and represents to PURCHASER with respect to itself, and as the case may be with respect to LNP, as
follows:
 

4

  1.         Legal Status and
Authority.
 (a)       Organization. SELLER is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Texas. LNP is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Oklahoma and such other jurisdictions necessary for the operation of the LNP PROPERTIES.
 (b)       Power and Authority. SELLER has all requisite power and authority to carry on its business as presently conducted, to own and hold
its respective portion of the CONTRACT INTERESTS, to enter into this agreement, and to perform its obligations under this agreement.
 (c)       No Conflict. The consummation of the transactions contemplated hereby will not violate, nor be in conflict with, (i) any provision
of any governing document of SELLER, (ii) any material provision of any agreement or instrument to which SELLER or LNP is a party or is bound (including, without limitation, any bank loan, indenture or credit agreement), (iii) any law, ordinance,
rule or regulation of any governmental authority of which SELLER is aware, or (iv) any applicable order, writ, judgment or decree of any court or other competent authority, and will not result in the creation of any lien, charge or encumbrance on
any of the LNP PROPERTIES.
 (d)       Consents. No authorization, consent or approval of or filing with any governmental authority is required to be obtained or made by SELLER for the execution and delivery by SELLER of this agreement and the consummation
by SELLER of the transactions contemplated hereby. Except as is provided in the OPERATING AGREEMENT, no authorization, consent or approval of any nongovernmental third
 

5

  party is required to be obtained by SELLER for the execution and delivery by SELLER of this agreement or the consummation by SELLER of
the transactions contemplated hereby.
 (e)       Binding
Agreement. This agreement has been duly executed and delivered by and on behalf of SELLER, and all documents and instruments required hereunder to be executed and delivered by SELLER at Closing will be duly executed and
delivered by or on behalf of SELLER. This agreement and all such documents and instruments constitute legal, valid and binding obligations of SELLER enforceable in accordance with their terms; subject, however, to the effects of bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
 2.         Public Utility Holding Company Act. It is not a “holding company” or a “subsidiary company” of a “holding company” or an affiliate of a “holding company” or a “subsidiary company” of a “holding company,” in each case
within the meaning of the Public Utility Holding Company Act of 1935, as amended.
 3.         Broker’s Fees. It has not incurred any obligation or liability, contingent or otherwise, for broker’s or finder’s fees with
respect to the transactions contemplated by this agreement that will be the responsibility of PURCHASER.
 4.         Bankruptcy Proceedings. There are no bankruptcy, reorganization or arrangement proceedings being contemplated by SELLER or pending or, to its
knowledge, threatened against SELLER.
 

6

  5.         Applicable
Contracts. Except as set forth on Schedule II.A.5., there are no agreements or arrangements relating to or affecting the LNP PROPERTIES. The contracts and agreements which constitute a part of the LNP PROPERTIES are in full
force and effect, and to its knowledge, LNP is not in default thereunder. LNP has not either given or received from any third party any notice of any action or intent to terminate or materially amend any such contract or agreement.
 6.         Lease Provisions. The oil,
gas and mineral leases described in Appendix I are in force and effect and by their terms shall remain in effect for at least as long as oil, gas or other minerals are produced in paying quantities. All rentals, royalties, overriding royalty
interests and other payments due under each of such leases have been promptly and fully paid, except amounts that are being held in suspense as a result of title issues and that do not provide any third party a right to cancel such lease. LNP has
paid its share of all development and operating expenses and current taxes, except for such as are being contested in good faith and for which adequate reserves have been provided. There are no express obligations to drill additional wells in order
to maintain in force and effect the rights of LNP in any LNP PROPERTY.
 7.         Compliance with Laws. During the period that WYNN-CROSBY ENERGY, INC. or SELLERS have supervised the operation of the LNP PROPERTIES, the LNP
PROPERTIES have been operated in material compliance with all applicable laws, regulations, rules, orders, judgments and decrees of all governmental bodies and courts having jurisdiction, and all wells thereon have been drilled and completed within
the boundaries of the applicable lease or unit and in compliance with all applicable spacing regulations.
 

7

  8.         Claims. Except as set forth on Schedule II.A.8. hereto, there is no claim, demand, action, administrative proceeding, lawsuit or governmental inquiry relating to the CONTRACT INTERESTS pending, or, to the best of its
knowledge, threatened. There is no claim, demand, action, administrative proceeding or governmental inquiry pending, or to the best of its knowledge, threatened, against it that (i) will or can reasonably be expected to materially hinder or impede
the consummation of the transactions contemplated by this agreement, or (ii) result in material impairment or diminution of its title to the CONTRACT INTERESTS or otherwise materially affect adversely the CONTRACT INTERESTS.
 9.         Preferential Rights of Purchase and Consents to
Assignment. Except as provided in the OPERATING AGREEMENT, no CONTRACT INTEREST is subject to any preferential right of purchase, right of first refusal or other agreement which gives a third party the right to purchase a
CONTRACT INTEREST or requires the consent of any third party to a sale and assignment herein provided to be effected.
 10.      Environmental Matters.
 (a)       There has not occurred during the period that WYNN-CROSBY ENERGY, INC. or SELLERS have supervised the operation of the LNP PROPERTIES an event in the use and operation of the LNP
PROPERTIES, and to the best knowledge of SELLERS there does not exist on the LNP PROPERTIES a condition, which constitutes a violation of any federal, state, local or tribal law (including common law), ordinance, rule, standard, prohibition or
regulation relating to health, safety or the environment, including, without limitation, the Comprehensive Environmental Response,
 

8

  Compensation and Liability Act of 1980, 42 U.S.C. §9601, et seq., as amended (“CERCLA”), the Resource Conservation and
Recovery Act of 1976, as amended, 42 U.S.C. §6901, et seq., the Clean Air Act, 42 U.S.C. §7401, et seq., as amended, the Federal Water Pollution Control Act, 33 U.S.C. §1251, et seq., as amended, and the Oil Pollution Act of 1990, 33
U.S.C. §2701, et seq. (collectively the “Environmental Laws”) including, without limitation, matters involving naturally occurring radioactive material (NORM), underground storage tanks, improperly plugged wells, wells for which
plugging and abandonment is required, improperly closed pits, pressure exceedances for injection or disposed wells and all permits for emission sources. During the period that WYNN-CROSBY ENERGY, INC. or SELLERS have supervised the operation of the
LNP PROPERTIES, there have been timely filed all required reports, there have been obtained all required approvals and permits, and there have been generated and maintained all required data, documentation and records under all applicable
Environmental Laws.
 (b)       During the period of time defined
in clause (a), next above, the LNP PROPERTIES have been operated in compliance with all applicable Environmental Laws and are not (and would not be, if all relevant facts were known to the applicable governmental authorities) subject to any remedial
obligations under such Environmental Laws.
 (c)       During the
period of time defined in clause (a), next above, the operator of the LNP PROPERTIES obtained all permits, licenses, franchises authorities, consents and approvals, made all material filings and maintained all material data, documentation and
records necessary for owning and operating the LNP PROPERTIES under all applicable Environmental Laws, all such permits, licenses, franchises, authorities,
 

9

  consents, approvals and filings remain in full force and effect, and LNP and, to the knowledge of such SELLER, such other persons, are in
compliance therewith.
 (d)       During the period of time
defined in clause (a), next above, no hazardous substances or solid wastes (as such terms are defined under any Environmental Law) generated from the LNP PROPERTIES have been sent to a site which, pursuant to CERCLA or any similar state law, has
been placed or is proposed to be placed, on the “National Priority List” of hazardous waste sites or which is subject to a claim, an administrative order or other request to take any cleanup, removal or remedial action or to pay for any
costs relating to such site. All hazardous substances and solid wastes generated from the LNP PROPERTIES and requiring disposal have, to the extent required by any Environmental Law, been transported only by carriers maintaining valid authorizations
and been treated, stored and disposed of only at facilities maintaining valid authorizations.
 (e)       Except as set forth on Schedule II.A.8. hereto, there are not pending or, to the best of its knowledge, threatened claims, demands, actions, administrative proceedings, lawsuits or
inquiries relating to the LNP PROPERTIES under any Environmental Law.
 (f)       There are no environmental investigations, studies or audits with respect to any of the LNP PROPERTIES owned or commissioned by, or in the possession of, SELLERS which have not
been disclosed to PURCHASER.
 11.      LNP Financial
Statements. To SELLER’s best knowledge, the balance sheet, statements of income and cash flows and statement of members’ capital accounts attached as Appendix III hereto (“Financial Statements”) are based
on the books and
 

10

  records of LNP and set forth in accordance with generally accepted accounting principles the financial position of LNP as of December 31,
2002, and all of the debts, liabilities and obligations owing by it as of such date.
 12.      WC98 and WC99 Account Status. As of December 31, 2002, WC99 had made contributions pursuant to Sections 3.1 and 3.2 of the OPERATING AGREEMENT in the aggregate
sum of $11,020,000, and WC98 had made contributions pursuant to such provisions in the aggregate sum of $580,000. As of such date the amount of the distributions made to WC99 pursuant to Section 5.2 of such OPERATING AGREEMENT equaled the sum of
$4,800,350, and the amount of distributions made to WC98 pursuant to Section 5.2 of the OPERATING AGREEMENT equaled the sum of $252,650.
 13.      Capitalization. The authorized equity of LNP consists solely of Sharing Ratios. The Sharing Ratios are allocated in the following
manner: 3.5% membership interests to WC98, 66.5% to WC99 and, so far as SELLERS know and believe, the remainder are allocated to PATINA OKLAHOMA CORP.
 14.      Absence of Undisclosed Liabilities. Except as reflected or expressly reserved against in the balance sheet listed
in Appendix III to this Agreement (“Balance Sheet”), LNP, to SELLER’s best knowledge, has no liability or obligation (whether accrued, absolute, contingent, unliquidated or otherwise, whether due or to become due, whether known or
unknown, and regardless of when asserted) and there is no basis for any present or future litigation, charge, complaint, claim or demand against any of them giving rise to any liability or obligation, except liabilities or obligations that have
arisen
 

11

  after the date of the balance sheet in the ordinary course of business, none of which is a liability or obligation for breach of
contract, breach of warranty, tort, infringement, litigation or violation of governmental order, governmental authorization or law.
 15.      Book and Records. The books and accounts of LNP are complete and correct and have been maintained in accordance with sound business
practices, including the maintenance of an adequate system of internal controls. The minute books and equity records of LNP, all of which have been made available to PURCHASER, are complete and correct. At the Closing, all such books and records
will be in the possession of PURCHASER.
 16.      Accounts
Receivable. All notes and accounts receivable of LNP are reflected properly on its books and records, are valid, have arisen from bona fide transactions in the ordinary course of business, are subject to no setoff or
counterclaim, and are current and to SELLER’s best knowledge collectible. Schedule II.A.16. describes notes and accounts receivable at their recorded amounts with an aging description as of December 31, 2002.
 17.      Taxes. LNP has (i) timely filed (or has had timely
filed on its behalf) all returns required to be filed, including returns for 2002 other than Federal Form 1065 and Oklahoma Form 514 for such calendar year, or sent by it in respect of any taxes or required to be filed or sent by it by any
governmental entity, including, without limitation, federal, state and local income taxes, payroll taxes, social security taxes, FICA, FUTA, franchise taxes, property taxes, advalorem taxes, severance taxes and conservation taxes, all of which were
correct and complete in all respects; and (ii) timely
 

12

  and properly paid (or has had paid on its behalf) all taxes shown to be due and payable on such returns.
 18.      Litigation. To SELLER’S best knowledge and except
as set forth on Schedule II.A.18, no litigation is pending or threatened against LNP, and there is no reasonable basis for litigation against LNP. LNP is not subject to any outstanding governmental order.
 19.      Insurance. LNP has at all times maintained insurance relating to its
business and covering general liability, umbrella and well control. Such insurance (i) is in full force and effect, (ii) is sufficient for compliance with all requirements of applicable laws and of any contract to which LNP is subject, and (iii) is
valid and enforceable.
 20.      Employee Matters. LNP has no employees. The employment of any terminated former employee of SELLER has been terminated in accordance with any applicable contractual terms and applicable law, and neither LNP nor PURCHASER has or will have any liability under
any contract or applicable law toward any such terminated employee. The sale of the CONTRACT INTERESTS or the other transactions contemplated by this Agreement will not cause LNP or the PURCHASER to incur or suffer any liability relating to, or
obligation to pay, severance, termination or other payments to any person.
 21.      Availability of Documents. SELLER has made available to PURCHASER correct and complete copies of the items referred to in this Agreement and
 

13

  the attachments thereto (and in the case of any items not in written form, a written description thereof).
 22.      Disclosure. This Agreement and the attachments, taken
as a whole, do not omit any material fact known to SELLERS necessary to make the statements contained herein or therein, in light of the circumstances in which they were made, not misleading.
 B.       Limitation of Warranties and Representations as to LNP PROPERTIES. EXCEPT AS OTHERWISE
EXPRESSED IN THIS AGREEMENT, SELLERS MAKE NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION, RECORDS OR DATA HERETOFORE OR HEREAFTER MADE AVAILABLE TO PURCHASER, EXCEPT THAT NO SELLER
HAS WITHHELD AND/OR HAS NO KNOWLEDGE OF ANY INFORMATION, RECORDS OR DATA WHICH MIGHT EVIDENCE A BREACH OF A REPRESENTATION OR WARRANTY OR OTHER COVENANT OF A SELLER SET FORTH HEREIN. WITHOUT LIMITING THE FOREGOING, SELLERS MAKE NO REPRESENTATION OR
WARRANTY AS TO THE POTENTIAL FOR PRODUCTION OF HYDROCARBONS FROM THE LNP PROPERTIES OR THE OPERABILITY OR PRODUCTIVITY OF ANY WELL THEREON. SELLERS MAKE NO AND DISCLAIM ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS OR IMPLIED, AND WHETHER BY
COMMON LAW, STATUTE OR OTHERWISE, AS TO (i) THE QUALITY, CONDITION OR OPERABILITY OF ANY PERSONAL PROPERTY OR EQUIPMENT, (ii) ITS MERCHANTABILITY, (iii) ITS FITNESS FOR ANY PARTICULAR PURPOSE, OR (iv) ITS CONFORMITY TO MODELS OR SAMPLES OF
MATERIALS.
 

14

  C.       Survival. The
representations and warranties made by a SELLER in clauses 5, et seq., of Section A of this Paragraph II shall survive for a period of six (6) months after the Closing. The liability of SELLERS for the breach of any such representation or warranty
shall not exceed the sum of Five Hundred Thousand Dollars ($500,000). The representations and warranties made by SELLERS in clauses 1 through 4, inclusive, of Section A of this Paragraph II shall survive the Closing without limitation as to time.

 III
 Representations and Warranties of PURCHASER
 A.       PURCHASER represents and warrants to SELLERS as follows:
 1.         Incorporation and Good Standing.
PURCHASER is a corporation duly organized and existing under the laws of the State of Delaware.
 2.         Power. PURCHASER has all requisite power and authority to execute and deliver, and to perform all PURCHASER’s obligations under, this
agreement and all other documents and instruments executed in connection herewith, and the execution and delivery by PURCHASER of this agreement and all other documents contemplated hereby or referred to herein, and the performance by PURCHASER of
the promises, covenants and agreements herein made by PURCHASER will not be in violation of its charter or bylaws or any other agreement under which PURCHASER exists or any agreement or indenture to which PURCHASER is subject or by which PURCHASER
is bound.
 3.         Corporate
Approval. The execution and delivery by PURCHASER of this agreement and all other documents contemplated hereby or referred to herein have been
 

15

  duly authorized by all necessary corporate action and do not and will not (i) require any consent or approval of any of its officers,
directors or shareholders, or (ii) to its knowledge violate any provisions of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to PURCHASER.
 4.         Government Consent. No authorization,
consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, is or will be necessary to the valid execution, delivery or
performance by PURCHASER of this agreement or any other document contemplated hereby or referred to herein.
 5.         Binding Obligation. This agreement constitutes the legal, valid and binding obligation of PURCHASER enforceable against PURCHASER in
accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’ rights.
 6.         Brokers. PURCHASER has not incurred any obligation or liability, contingent or otherwise, for
broker’s or finder’s fees with respect to the transactions contemplated by this agreement that will be the responsibility of a SELLER.
 IV

Certain Agreements of SELLERS
 Each SELLER covenants and agrees that from
and after the date hereof and unless and until this agreement is terminated as hereinafter provided:
 

16

  1.         Sales. It will not sell, transfer, assign, convey or otherwise dispose of any CONTRACT INTEREST, including any LNP PROPERTIES.
 2.         Encumbrances. It will not create or permit the creation of any lien, security interest or
encumbrance on any CONTRACT INTEREST, including any LNP PROPERTIES.
 3.         Contracts and Agreements. It will not (i) grant any preferential right to purchase or similar right or agree to require the consent of any
party to the transfer and assignment to PURCHASER of any CONTRACT INTEREST, including any LNP PROPERTIES; (ii) incur or agree to incur any contractual obligation or liability, absolute or contingent, with respect to the CONTRACT INTERESTS, including
any LNP PROPERTIES, which are herein provided to be sold and conveyed, except as otherwise provided herein; (iii) enter into any transaction the effect of which, considered as a whole, would be to cause any CONTRACT INTEREST, including any LNP
PROPERTIES, which is herein provided to be sold and conveyed to be altered as of December 31, 2002; (iv) enter into any transaction related to the LNP PROPERTIES with a total value of over $10,000 (other than and excluding the routine recurring
operation, maintenance and production of the LNP PROPERTIES) without the prior written approval of PURCHASER; (v) enter into any transaction, including distributions or reimbursements, between LNP and SELLERS or SELLER’s affiliates, other than
payment of costs and expenses of operation which are incurred in compliance with this agreement, including the payment to WYNN-CROSBY ENERGY, INC. of overhead charges for periods prior to Closing at the same rates therefore paid during the last six
(6)
 

17

  calendar months of 2002; or (vi) enter into any hedging instruments other than those listed in Appendix I.(d).
 4.         Amendments. It will not supplement,
amend, alter, modify or waive the Articles of Organization of LNP, the OPERATING AGREEMENT, or any contract or agreement which constitutes a part of the CONTRACT INTERESTS or adversely affects the value of any LNP PROPERTIES, insofar as it covers
the interest therein which is herein provided to be sold and conveyed nor surrender, permit to expire (except upon expiration of its term) or terminate any such contract or agreement except as may be authorized by PURCHASER in writing in each
instance.
 V
 Title to LNP PROPERTIES
 A.       SELLERS’ Representations. SELLERS represents that LNP has and
will have at the Closing of the sale and purchase herein provided good and Marketable Title (as defined below) to the interests in the LNP PROPERTIES which is described on Appendix I, free of all liens, security interests and encumbrances other than
Permitted Encumbrances.
 B.       Definition of Marketable Title. As used herein with respect to each LNP PROPERTY, the term “Marketable Title” shall mean that title which is filed of record and free from reasonable doubt such that a prudent person engaged in the business of the ownership,
development and operation of producing oil and gas properties, with knowledge of all the facts and their legal effect, would be willing to accept the same and which:
 1.         Entitles LNP as a result of its ownership of the LNP PROPERTIES to receive from each lease, unit or well (free and clear of
all royalties, overriding royalties, nonparticipating royalties, net
 

18

  profits interests or other burdens on or measured by production of oil and gas) throughout the duration of the productive life of the
relevant lease, unit or well, not less than the “net revenue interest” set forth on Appendix I of the oil, gas and other minerals produced, saved and marketed from the lease, unit or well, without reduction, suspension or
termination;
 2.         Obligates LNP as a result of
its ownership of the LNP PROPERTIES to bear a percentage of the costs and expenses of the maintenance and development of, and operations relating to, any lease, unit or well not greater than the “working interest” set forth on Appendix I,
without increase throughout the productive life of such lease, well or unit; and
 3.         Is free and clear of liens, encumbrances, obligations or defects except for Permitted Encumbrances. As used herein, the term “Permitted Encumbrances”
means:
 (i)        the terms and conditions of all
contracts and agreements described on Appendix I or Schedule II.A.5;
 (ii)       liens for taxes or assessments not yet delinquent, or, if delinquent, that are being contested in good faith in the normal course of business;
 (iii)     liens arising under operating agreements, unitization and pooling agreements and
production sales contracts securing amounts not yet delinquent, or if delinquent, that are being contested in good faith in the normal course of business;
 (iv)      conventional rights of reassignment prior to abandonment requiring not more than 90 days’ notice to the holders of such
rights;
 (v)       easements, rights-of-way, servitudes,
permits, surface leases and other rights in respect of surface operations, pipelines, grazing, hunting, fishing, logging, canals, ditches, reservoirs or the like, and easements of streets, alleys,
 

19

  highways, pipelines, telephone lines, power lines, railways and other similar easements and rights-of-way on, over or in respect of any
LNP PROPERTY, none of which materially interferes with the development and operation of the LNP PROPERTIES for the production of hydrocarbons or for the use for which the same are held;
 (vi)      such Title Defects as PURCHASER may have expressly waived in writing; 
 (vii)    rights reserved to or vested in any governmental, statutory or public authority to control or regulate any LNP
PROPERTY in any manner, and all applicable laws, rules and orders of governmental authority, however, not including Environmental Laws;
 (viii)   inchoate operators’ liens attributable to unbilled joint account expenditures; and
 (ix)      liens and security interests of banking institutions described in Appendix III hereto to secure the payment of the indebtedness described
in such Appendix III.
 C.       Examination of Title and Access. PURCHASER may make or cause to be made at its expense such examination as it may desire of the title of LNP to the LNP PROPERTIES. For such purposes, SELLERS will, or will cause LNP to, (a) give to PURCHASER and to the employees,
consultants, independent contractors, attorneys and other advisers of PURCHASER full access at any reasonable time to all of the files, records, contracts, correspondence, computer output and data files, maps, data, reports, plats, abstracts of
title, title opinions, lease files, well files, unit files, division order files, production marketing files, title opinions, title files and title
 

20

  records, ownership maps, surveys and any other information, data, records and files which SELLER or LNP may have (or have access to) relating in any way to
the title to the LNP PROPERTIES, the past or present operation thereof and the marketing of production therefrom; (b) furnish to PURCHASER all other information in the possession of or available to SELLER or LNP with respect to the title to the LNP
PROPERTIES as PURCHASER may from time to time reasonably request; and (c) authorize PURCHASER and its representatives to consult with attorneys, abstract companies and other consultants or independent contractors of SELLER and LNP, whether utilized
in the past or presently, concerning title-related matters with respect to the LNP PROPERTIES.
 D.       Conditions; Effect of Defects. The obligations of PURCHASER hereunder are subject to its review of the title of LNP to the LNP PROPERTIES and its
confirmation on or before five (5) full business days prior to the date of Closing that LNP has Marketable Title to each LNP PROPERTY, free and clear of all liens, security interests and encumbrances other than Permitted Encumbrances.
 If on or prior to five (5) full business days prior to the date of Closing, PURCHASER delivers to SELLERS written notice setting forth (1) defects which render the title of
LNP to a particular LNP PROPERTY or an interest therein other than Marketable Title (a “Title Defect”), or (2) errors made in the calculation of working interests or revenue interests set forth on Appendix I (“Interest Error”),
and (3) the diminution in the value of the LNP PROPERTIES which is occasioned by such defect or error, SELLERS shall cause LNP to use its best efforts and endeavors prior to Closing to cure such defect or defects. If such defect has not been cured
three (3) full business days prior to the date of Closing, and if no agreement in respect thereto has been reached by SELLERS and PURCHASER, and if such defects or errors which exist
 

21

  diminish the value of the LNP PROPERTIES by the aggregate sum of One Hundred Thousand Dollars ($100,000) or more, PURCHASER shall have the right and option
to elect to:
 (a)       waive such defect or defects and proceed to Closing,
or
 (b)       terminate this agreement.
 PURCHASER shall notify SELLERS of the election provided it in this Section V.D. prior to the date of Closing, and the failure of PURCHASER to so notify SELLERS of its election prior to such time
shall constitute an election by PURCHASER not to terminate this agreement.
 VI
 Environmental Review and
Remedies for Environmental Defects
 A.       Environmental Review. PURCHASER and its employees, agents and contractors shall have the right, at PURCHASER’S sole risk and expense, but with the
cooperation and assistance of SELLERS, to:
 1.         enter all or any portion of the LNP PROPERTIES to inspect, inventory, test, investigate, study and examine the LNP PROPERTIES to verify the accuracy of the representations made by SELLERS in Section II.A.10;
 2.         conduct air, water or soil tests on the LNP PROPERTIES and make
such samples and borings and analyses as PURCHASER may consider necessary or appropriate for such purpose;
 3.         conduct such other independent inspections, inventories, tests, investigations, studies or examinations as may be necessary or appropriate in PURCHASER’S sole
judgment for the preparation of health, safety, environmental or other reports or assessments relating to the operation, use, maintenance, condition or status of the LNP PROPERTIES, and their compliance with all applicable laws, regulations,
ordinances, orders, permits and licenses; and
 

22

  4.         conduct an
independent assessment of the extent of any possible existing or contingent liabilities due or related to the operation, use, maintenance, condition or status of the LNP PROPERTIES.
 B.       Conduct of Review. All inspections and reviews shall be undertaken with a minimum of disruption to ongoing
operations and shall only be undertaken after reasonable notice to SELLERS. PURCHASER shall not undertake any destructive testing without the prior approval of SELLERS. PURCHASER shall provide SELLERS with a copy of the results and reports of all
such inspections, testing and reviews. PURCHASER shall indemnify, defend and hold harmless LNP, SELLERS and their affiliates, officers, directors, employees, attorneys and agents from any and all losses, liabilities, liens or encumbrances for labor
or materials, claims or causes of action arising out of any injury to or death of any persons, or damage to property occurring to or on the LNP PROPERTIES as a result of the exercise of PURCHASER’S rights under this Section VI.
 C.       Remedies for Environmental Defects. If, as a result of the
review of the LNP PROPERTIES conducted pursuant to Sections VI.A. and VI.B., PURCHASER determines that in its reasonable judgment there have occurred events or there exists a condition on the LNP PROPERTIES which constitutes a condition affecting an
LNP PROPERTY that is a violation of Environmental Law (an “Environmental Defect”) and on or prior to five (5) full business days prior to the date of Closing, PURCHASER delivers to SELLERS written notice setting forth (1) a description of
the Environmental Defect and (2) the diminution in the value of the LNP PROPERTIES which is occasioned by such defect, SELLERS shall cause LNP to use its best efforts and endeavors prior to Closing to cure such defect or defects. If such defect has
not been cured three (3) full business days prior to the date of Closing, and if no agreement in respect thereto has been reached by SELLERS and PURCHASER, and if such defects or errors which 
 

23

  exist diminish the value of the LNP PROPERTIES by the aggregate sum of One Hundred Thousand Dollars ($100,000) or more, PURCHASER shall have the right and
option to elect to:
 (a)       waive such defect or defects and proceed to Closing,
or
 (b)       terminate this agreement.
 PURCHASER shall notify SELLERS of the election provided it in this Section VI.C. prior to the date of Closing, and the failure of PURCHASER to so notify SELLERS of its election prior to such time
shall constitute an election by PURCHASER not to terminate this agreement.
 VII
 Casualty Loss
 A.       Applicable Losses
and Notice. If prior to Closing any of the LNP PROPERTIES are so damaged or destroyed by fire, explosion or other casualty that LNP will be unable at and after Closing to use, operate, produce and maintain the LNP PROPERTIES
in the manner in which they are currently used, operated, produced and maintained by it, SELLERS shall promptly notify PURCHASER of such fact. SELLERS shall have the right, but not the obligation, to cause LNP to cure any such defect by repair or
replacement prior to the Closing.
 B.       Remedies. If
such defect has not been repaired or replaced prior to the Closing, and if the cost of repair or replacement thereof exceeds $100,000, PURCHASER shall have the right and option to elect to:
 1.         waive such defect or defects in respect of repair and replacement costs and proceed to Closing;
or
 2.         terminate this agreement.
 

24

  PURCHASER shall notify SELLERS of its election made pursuant to this Section VII.B. prior to the date of Closing, and the failure of PURCHASER to so notify
SELLERS of its election prior to Closing shall constitute an election not to terminate this agreement and to close the sale and purchase herein provided.
 VIII
 Conditions to Obligations of SELLERS
 The
obligations of SELLERS to consummate the sale and purchase transaction provided for herein are subject, at the option of SELLERS, to the fulfillment on or prior to the Closing of each of the following conditions:
 A.       Representations. The representations and warranties of PURCHASER
herein contained shall be true and correct in all respects on the Closing as though made on and as of such date.
 B.       Performance. PURCHASER shall have performed all of its obligations, covenants and agreements hereunder and shall have complied with all covenants and
conditions contained in this agreement to be performed or complied with by it at or prior to the Closing.
 C.       Pending Matters. No suit, action or other proceeding shall be pending which seeks to restrain, enjoin or otherwise prohibit the consummation of the
transactions contemplated by this agreement.
 D.       Sale by WYNN-CROSBY
ENERGY, INC. There shall have occurred a closing of the sale and purchase provided in the agreement of even date herewith between WYNN-CROSBY ENERGY, INC. and PURCHASER with respect to personal property and
equipment
 

25

  utilized by WYNN-CROSBY ENERGY, INC. in performance of its services under the OPERATIONS AGREEMENT.
 E.        Release of Guaranty. WYNN-CROSBY ENERGY, INC. shall be released and discharged of
and from all obligations, liabilities, causes of action, and responsibilities under Indemnity Agreement dated May 25, 2000, executed by LNP, as principal, and WYNN-CROSBY ENERGY, INC. and PATINA OKLAHOMA CORP., as Corporate Indemnitors, for the
benefit of RLI Insurance Company.
 IX
 Conditions to Obligations of
PURCHASER
 The obligations of PURCHASER to consummate the sale and purchase transaction provided for herein are subject, at the option of PURCHASER, to the fulfillment on or
prior to the Closing of each of the following conditions:
 A.       Representations. The representations and warranties of SELLERS herein contained shall be true and correct in all material respects on the Closing as though made on and as of such date.
 B.       Performance. SELLERS shall have performed all of their obligations,
covenants and agreements hereunder and shall have complied with all covenants and conditions contained in this agreement to be performed or complied with by them at or prior to the Closing.
 C.       Pending Matters. No suit, action or other proceeding shall be pending or threatened (i)
against a SELLER before any court or governmental agency which might result in impairment or loss of value as to any part of the CONTRACT INTERESTS herein provided to
 

26

  be sold and assigned or which seeks to restrain, enjoin or otherwise prohibit the consummation of the transactions contemplated by this agreement.

D.       Access. To the extent they are able to do so, SELLERS
shall have afforded PURCHASER and its officers, employees and representatives free and complete access to the LNP PROPERTIES and the records of SELLERS pertaining thereto, from and after the date of this agreement.
 E.        Instruments to be Delivered. There shall be delivered to
PURCHASER at the Closing the instruments provided in Section X.B., including the opinion of SELLERS’ counsel that the representations and warranties made by SELLERS in Section II.A.1. are true and correct as of such time.
 F.        OPERATIONS AGREEMENT. The parties to the OPERATIONS AGREEMENT
shall have effectively terminated the OPERATIONS AGREEMENT and released and discharged all parties thereto of and from all obligations, duties and responsibilities thereunder, except as provided in Section X.C. hereof with respect to tax filings to
be prepared and made.
 X
 Closing
 A.       Time and Place. The Closing of the purchase and sale herein provided
(the “Closing”) shall be effected in the offices of SELLERS, in Plano, Texas, on March 14, 2003, at such time prior to such date as may be designated by PURCHASER by notice in writing delivered to SELLERS not less than two (2) full
business days prior to the date so designated, or at such other time as may be mutually agreed upon by the parties.
 

27

  B.       Actions at Closing. At such Closing:
 1.        SELLERS will:
 (a)       execute and deliver to PURCHASER instruments effectively as signing the CONTRACT INTERESTS to
PURCHASER;
 (b)       deliver to PURCHASER the opinion of
counsel described in Section IX.E.;
 (c)       deliver to
PURCHASER such files maintained by them as relate to the CONTRACT INTERESTS; 
 (d)       execute and deliver to PURCHASER non-foreign affidavits in compliance with Section 1445 of the Internal Revenue Code; and
 (e)       deliver to PURCHASER certificates of good standing from the states of domicile of SELLERS and
LNP.
 2.        PURCHASER will pay to SELLERS by wire
transfer to Union Bank of California, N.A., in immediately available funds, the amount by which the PURCHASE PRICE exceeds the earnest money deposit deposited by PURCHASER pursuant to Paragraph XI.
 C.       Actions After Closing. After such Closing each party, at the request of the other and
without further consideration, will from time to time execute and deliver such other and further instruments, make such cash payments, and do and perform such other and further acts and things as may be necessary or appropriate to effect the
agreement herein made. WC99, as the tax matters member of LNP, will prepare and file the 2002 Federal Form 1065 and Oklahoma Form 514 on or before April 15, 2003, and such 2003 returns within 90 days after Closing.
 If after the Closing either party shall receive any payment belonging to the other party or pay any obligation of the other party, the party receiving the payment due to the other
party shall
 

28

  promptly remit the same to such other party, and the party making a payment for the account of the other party shall be promptly reimbursed by the other
party the amount of such payment.
 XI
 Earnest Money
Deposit
 A.       Deposit. Contemporaneously with the
execution hereof, PURCHASER has deposited with Wells Fargo Bank, N.A., at its offices in Denver, Colorado (“Escrow Agent”), the sum of One Million Dollars ($1,000,000) as an earnest money deposit in connection with the agreement evidenced
hereby. Such sum shall promptly be invested by the Escrow Agent in an interest bearing account or deposit, bond, note or other security issued by the United States of America or any agency thereof, as selected and designated by the Escrow Agent in
the exercise of its sole judgment and discretion.
 B.       Action if Closing
Occurs. If the sale and purchase herein provided is closed, all of such earnest money deposit and the interest then accumulated or accrued thereon, other than the sum of Five Hundred Thousand Dollars ($500,000) shall be paid
and remitted to SELLERS as a portion of the PURCHASE PRICE provided to be paid and remitted to SELLERS.
 Such sum of Five Hundred Thousand Dollars ($500,000)
shall be retained by the Escrow Agent for a period of six (6) months after the date of such Closing. If during such six (6) month period the chief executive officer or the chief financial officer of PURCHASER delivers to the Escrow Agent his or her
affidavit that there has occurred a breach by SELLERS of a representation or warranty contained in Section II.A. hereof and the amount of loss or damage sustained by PURCHASER as a result of such breach, the Escrow Agent shall pay and remit to
PURCHASER the amount so stated. All of the sum remaining in such deposit at the expiration 
 

29

  of such six (6) month period, and the earnings accrued thereon, shall be paid and remitted by the Escrow Agent to SELLERS.
 C.       Action if Closing Does Not Occur. If the sale and purchase herein
provided is not closed on or before March 21, 2003, and if the failure to close such sale and purchase is the result of a breach by SELLERS of their covenants, promises and agreements herein made, then on the request of PURCHASER made after such
date, the Escrow Agent will promptly remit and refund to PURCHASER all of such sum so deposited and the interest then accumulated or accrued thereon. The request of PURCHASER for return of such deposit shall constitute a waiver and release by it of
any claim for specific performance of this agreement but shall not constitute a release or waiver of any other remedy available to it at law or in equity as a result of such breach by SELLERS.
 If the sale and purchase herein provided is not closed on or before March 21, 2003, and if the failure to close such sale and purchase is the result of a breach by PURCHASER of its covenants,
promises and agreements herein made, the Escrow Agent shall remit and pay to SELLERS all of such sum so deposited and the interest accumulated or earned thereon, and such sum shall be received by SELLERS as liquidated damages for such breach. Such
payment of liquidation damages shall be SELLERS’ sole remedy against PURCHASER for such breach.
 If the sale and purchase herein provided is not closed on
or before March 21, 2003, and if the failure to close such sale and purchase is not the result of a breach by either PURCHASER or SELLER of their covenants, promises and agreements herein made, the Escrow Agent shall remit and pay to PURCHASER all
of such sum so deposited and the interest accumulated or earned thereon.
 

30

  XII
 Termination
 A.       Right of Termination. This agreement and the transactions
contemplated herein may be completely terminated at any time at or prior to the Closing:
 (i)        by mutual consent of the parties;
 (ii)       by PURCHASER pursuant to Sections V.D., VI.C. and VII.B.;
 (iii)     by any party if a Closing shall not have occurred on or before March 21, 2003, for a reason other than the breach by such party of this agreement; or
 (iv)      by any party if, at or prior to a Closing, any suit, proceeding, claim
or other judicial or administrative matter or action (other than a suit or proceeding instituted directly or indirectly by the party seeking to effect such termination) is pending or threatened which directly or indirectly may materially adversely
affect the CONTRACT INTERESTS, or title to the LNP PROPERTIES or any material portion thereof.
 B.       Effect of Termination. In the event of the termination of this agreement pursuant to any provision of this Paragraph XII, this agreement will become void
and have no effect, and none of the parties hereto shall have any further right or duty to the other hereunder, except as expressly provided to the contrary herein. 
 XIII
 Miscellaneous
 A.       Entire Agreement. This agreement, the documents to be executed hereunder, and each Appendix and schedule attached hereto constitute the entire agreement
among the parties pertaining to the subject matter hereof and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties pertaining to the subject matter hereof. There are no warranties,
representations or other agreements between the parties hereto in connection with the subject matter hereof except as specifically set forth herein or in
 

31

  documents delivered pursuant hereto. No supplement, amendment, alteration, modification, waiver or termination of this agreement shall be binding unless
executed in writing by the parties hereto, except as is otherwise expressly provided herein.
 B.       Waiver. No waiver of any of the provisions of this agreement will be deemed or shall constitute a waiver of any other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.
 C.       Captions. The captions in this agreement are for convenience only and may not be considered a part of or as affecting the construction or interpretation
of any provision of this agreement.
 D.       Governing Law and
Arbitration. This agreement, all documents delivered pursuant hereto and the legal relations between the parties shall be governed by and construed in accordance with the laws of the State of Oklahoma.
 All disputes arising out of or in connection with the execution, interpretation or performance of this agreement shall, to the fullest extent permitted by law, be solely and
finally determined by arbitration conducted in Oklahoma City, Oklahoma, in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The decision of the arbitrator(s) shall be reduced to writing and shall be binding
on the parties. Judgment upon any award so determined may be entered and executed in any court of competent jurisdiction, or application may be made to such court for a judicial acceptance of the award and an order of enforcement. The costs and
expenses of such arbitration shall be borne in such manner as may be determined by such arbitrator(s).
 

32

  E.        Notices. Any notice,
communication, request, instruction or other document required or permitted hereunder shall be given in writing by certified mail, return receipt requested, postage prepaid, or by prepaid telegram, overnight courier, telecopier, facsimile
transmission, or delivered, as follows:
 If to SELLERS:
 Wynn-Crosby
1998, Ltd.
Wynn-Crosby 1999, Ltd.
5500 West Plano Parkway
Suite 200
Plano, Texas 75093
Attn: Russell L. Harlow
Telephone: 972/380-5500
Telefacsimile: 972/380-9570
 If to PURCHASER:
 Patina Oklahoma Corp., a wholly owned 
subsidiary of Patina Oil
& Gas
Corporation
1625 Broadway, Suite 2000
Denver, Colorado 80202
Attn: David J. Kornder
Telephone: (303)
389-3600
Telefacsimile: (303) 595-7407
 or to such other address or to the attention of such other person as shall be designated in writing by any party to
the other party hereafter. All notices will be deemed to have been given as of the date of receipt.
 F.        Expenses. Each party shall be solely responsible for all expenses incurred by it in connection with this transaction, including, without
limitation, fees and expenses of its own counsel and accountants, and shall not be entitled to any reimbursement therefor from any other party hereto.
 

33

  G.       Inconsistent Activities. Unless and until this
agreement has been terminated as provided herein, SELLERS shall not (i) solicit, discuss or otherwise entertain, directly or indirectly, any offer to acquire any of the CONTRACT INTERESTS or any interest therein; or (ii) provide information to
others concerning the CONTRACT INTERESTS or the LNP PROPERTIES, except as required by law.
 H.       Confidentiality. Neither SELLERS nor PURCHASER shall provide any information concerning the CONTRACT INTERESTS, the LNP PROPERTIES, or any aspect of the
transactions contemplated by this agreement to anyone other than their respective affiliates, lending institutions, officers, employees and representatives, except as required by law. These limitations will terminate on the earlier to occur of (i)
the Closing of the transactions contemplated herein, or (ii) such time as the information and data in question becomes generally available to the oil and gas industry other than through the breach by either party or its respective officers,
employees or representatives of the obligations of the section. PURCHASER agrees that if this agreement is terminated for any reason whatsoever, it will, on SELLERS’ request, promptly return to SELLERS all information and data furnished or made
available to it by SELLERS and its officers, employees and representatives in connection with the investigation by PURCHASER of the CONTRACT INTERESTS.
 I.         Publicity. Except as required by applicable law, no party will disclose to any third party the terms of this agreement.
PURCHASER shall be entitled to issue a press release and file a Current Report on Form 8-K with the Securities and Exchange Commission to announce and disclose both the execution of this Agreement and the closing of the transaction contemplated by
this Agreement, provided SELLER receives a copy of any such document and has an opportunity to comment thereon prior to release.
 

34

  J.         Audits.
Wherever under this agreement an accounting determination or reconciliation is required with respect to any matter arising hereunder, any party may, at its expense, perform or cause to be performed such audit as is deemed appropriate. The parties
will cooperate to provide all necessary access to the information required for any such audit. 
 K.       Severability. If any term or other provision of this agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy,
all other conditions and provisions of this agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to either party. Upon
such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.
 L.        Assignment. No assignment may be made by any party of this agreement or of any right, privilege, cause of action or obligation hereunder.

 M.      Agreement Termination. In the event that this
Agreement is not signed by both Parties and delivered to each Party by February 28, 2003, it shall have no force or effect and shall terminate.
 

35

  IN WITNESS WHEREOF, the parties have executed and delivered this agreement on the date above recited.
   

	  
 	 SELLERS:
 
 
 
 
 	 WYNN-CROSBY 1998, LTD.
 By PAIGE LEE LIMITED, General Partner
 
	 
 
 
 	  
 	  
 	 
 By WYNN-CROSBY ENERGY, INC.,      General Partner
 
	  
 	  
 	  
 	  
 

   

	  
 	  
 	  
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ RUSSELL L. HARLOW
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Russell L. Harlow
 Vice President
 

   

	  
 	  
 	 WYNN-CROSBY 1999, LTD.
 By BERNADIEN WYNN LIMITED
       General Partner
 
	  
 	  
 	  
 	 
 By WYNN-CROSBY ENERGY, INC.,
      General Partner
 
	  
 	  
 	  
 	  
 

	  
 	  
 	  
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ RUSSELL L. HARLOW
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Russell L. Harlow
 Vice President
 

   

	  
 	 PURCHASER:
 
 
 
 	 PATINA OKLAHOMA CORP.
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ DAVID J. KORNDER
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 David J. Kornder
 Vice President
 

 
 36

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