Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Terax Energy, Inc. - Exhibit 4.1

Exhibit 4.1 

 STOCK PURCHASE AND SALE AGREEMENT

                 THIS
  STOCK PURCHASE AND SALE AGREEMENT (this “Agreement”),
  entered into as of the 31st day of May, 2005, by and between Holywell Technological
  Investments Ltd., a Bahamas Corporation, and First Finance Limited, a Canadian
  Corporation (each a “Seller” and collectively, the “Sellers”),
  and Terax Energy, Inc., a Nevada corporation (“Buyer”).

 Background 

                 A.
  Erath Energy Inc., a Delaware corporation (the “Company”),
  has acquired interests in certain oil and gas leases covering 10,842 acres,
  more or less, as more particularly described and illustrated in Schedule "A"
  attached hereto and located in Erath County, Texas (the "Leasehold Interests");

                 B.
  Sellers own 3,000 shares (the “Company Shares”) of the issued
  and outstanding Common Stock, $0.001 par value, of the Company; and 

                 C.
  Sellers desire to sell to Buyer, and Buyer desires to purchase from Sellers,
  all of the Company Shares for the consideration and on the terms and conditions
  set forth hereinbelow. 

 Terms and Conditions 

                 In
  consideration of the premises and other good and valuable consideration, the
  receipt and sufficiency of which are hereby acknowledged, the parties hereto
  hereby agree as follows: 

                 1.
             Sale
  and Transfer of Stock. 

                                 Subject
  to the terms and conditions of this Agreement, at the Closing (as hereinafter
  defined) Sellers shall sell, transfer and deliver to Buyer, and Buyer shall
  purchase and pay for, all of the Company Shares. 

                 2.
             Acquisition
  Price. 

                                 2.1
             
  Amount. The acquisition price for the Company Shares (the “Acquisition
  Price”) shall be a total of One Million, Five Hundred and Ninety-Thousand
  and No/100 Dollars ($1,590,000) to be paid by the Buyer to the Sellers by
  the delivery of certificates (the “Certificates”) representing
  Three Hundred and Eighteen-Thousand (318,000) shares of the Buyer’s common
  stock, $0.001 par value (the “Acquisition Shares”) allocated
  among the Sellers as set forth in Schedule “B” attached hereto.

                                 2.2
             
  Restrictions on Transfer. The Sellers acknowledge and agree that the
  Acquisition Shares may not be sold, transferred, pledged, hypothecated or otherwise
  disposed of 

 - 2 -

 except as follows: (1) to a person whom the Acquisition Shares
  may legally be transferred without registration and without delivery of a current
  prospectus under the United States Securities Act of 1933 (the “1933
  Act”) with respect thereto and then only against receipt of an agreement
  of such person to comply with the provisions of this Section 2 with respect
  to any resale or other disposition of the Acquisition Shares; or (2) to any
  person upon delivery of a prospectus then meeting the requirements of the 1933
  Act relating to such securities and the offering thereof for such sale or disposition,
  and thereafter to all successive assignees. 

                                 2.3
             
  Legends. The Sellers are aware of the restrictions of transferability
  of the Acquisition Shares and further understand and acknowledge that the Certificates
  will bear the following legend: 

  
    
      
         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
          NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
          (THE “U.S. SECURITIES ACT”) OR OTHER APPLICABLE SECURITIES
          LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH
          A VIEW TO DISTRIBUTION OR RESALE AND MAY NOT BE OFFERED, SOLD, PLEDGED
          OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH THE PROVISIONS
          OF REGULATIONS S, RULE 901 THROUGH RULE 905, AND PRELIMINARY NOTES UNDER
          THE U.S. SECURITIES ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM
          THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT OR (3) PURSUANT
          TO AN EFFECTIVE REGISTRATION STATEMENT. HEDGING TRANSACTIONS INVOLVING
          THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
          U.S. SECURITIES ACT. 

      

    

  

                                 2.4
             
  SEC Filings. The Sellers acknowledge that they have read or have had
  access to all of the Company's filings with the Securities and Exchange Commission
  under the United States Securities Exchange Act of 1934 and have had an opportunity
  to discuss the operations of the Company and consult with the officers and directors
  concerning the acquisition of the Acquisition Shares. 

                                 2.5
             
  No Advertisement. The Sellers acknowledge that the Acquisition Shares
  have been offered to them in direct communication between themselves and the
  Company and not through any advertisement of any kind. 

                                 2.6
             
  Acknowledgment. The Sellers acknowledge that they have been encouraged
  to seek their own legal and financial counsel to assist them in evaluating this
  Agreement and the investment represented by the Certificates. The Sellers acknowledge
  that they have sufficient knowledge, financial and business experience concerning
  the affairs and conditions of the Company so that they can make a reasoned decision
  as to the investment represented by the Certificates and are capable of evaluating
  the merits and risks of this 

 - 3 -

 investment. The Sellers further understand and acknowledge
  that they shall be responsible for all taxes of any kind whatsoever resulting
  from this agreement. 

                                 2.7
             
  The Sellers understand that the Acquisition Shares have not been registered
  under the 1933 Act in reliance on an exemption contained in Regulation S, and
  that the Buyer is relying upon the truth and accuracy of the representations,
  warranties, covenants, acknowledgements and understandings of the Sellers set
  forth herein in order to determine the applicability of such exemption. 

                                 2.8
             
  Neither of the Sellers are, and at the Closing Date neither of the Sellers will
  be, a U.S. Person as that term is defined in Regulation S. 

                                 2.9
             
  The Sellers are not, and at the time of the acquisition of the Acquisition Shares
  will not be, acquiring the Acquisition Shares for the account or benefit of
  a U.S. Person. 

                                 2.10
             The
  Sellers understand that the Acquisition Shares cannot be offered for sale, sold
  or otherwise transferred unless in accordance with the provisions of Regulation
  S, pursuant to registration under the U.S. Securities Act, or pursuant to an
  available exemption from registration under the 1933 Act. 

                                 2.11
             The
  Sellers will not, directly or indirectly, or through one or more intermediaries,
  maintain any short position in the Acquisition Shares during the applicable
  distribution compliance period, will not engage in hedging transactions with
  regard to the Acquisition Shares unless in compliance with the provisions of
  Regulation S, pursuant to registration under the 1933 Act, or pursuant to an
  exemption from the registration requirements of the 1933 Act and will only resell
  the Securities only in accordance with the provisions of Regulation S, pursuant
  to a registration under the U.S. Securities Act, or pursuant to an available
  exemption from registration under the 1933 Act;

                 3.
             Representations
  and Warranties 

                                 3.1
             
  Representations and Warranties of the Buyer. The Buyer hereby represents
  and warrants as at the date hereof and as at Closing (as hereinafter defined)
  in all material respects to the Sellers, with the intent that the Sellers will
  rely thereon in entering into this Agreement and in approving and completing
  the transactions contemplated hereby, that: 

                                 (a)
             
  it is a corporation duly incorporated and validly subsisting under the laws
  of the State of Nevada, and is in good standing with the office of the Secretary
  of State for the State of Nevada; 

                                 (b)
             
  it has duly obtained all corporate authorizations for the execution of this
  Agreement and for the performance of this Agreement by it; 

                                 (c)
             
  there is no provision in its memorandum or articles or equivalent constituent
  documents, and no provision in an existing mortgage, indenture, guarantee, contract
  or agreement binding on it, and no provision in any statute, rule, regulation,
  judgment, decree, 

 - 4 -

 order, franchise or permit applicable to it, which would be
  contravened by its execution, delivery or performance of this Agreement, and
  it is not in default under such mortgage, indenture, guarantee, contract or
  agreement or in violation of any such statute, rule, regulation, judgment, decree,
  order, franchise or permit; 

                                 (d)
             
  no proceedings are pending for, and it is unaware of any basis for the institution
  of any proceedings relating to the dissolution or winding up of it or the placing
  of it in bankruptcy or subject to any other laws governing the affairs of insolvent
  persons. 

                                 3.2
             
  Representations and Warranties of the Sellers. The Sellers hereby jointly
  and severally represent and warrant as at the date hereof and as at Closing
  (as hereinafter defined) in all material respects to the Buyer, with the intent
  that the Buyer will rely thereon in entering into this Agreement and in approving
  and completing the transactions contemplated hereby, that: 

                                 (a)
             
  none of the Sellers are US Persons as that term is defined in Regulation S promulgated
  under the United States Securities Act of 1933; 

                                 (b)
             
  the Sellers are acquiring the Acquisition Shares for investment purposes and
  not with a view to distribution or resale; 

                                 (c)
             
  the Company is a corporation duly incorporated and validly subsisting under
  the laws of the State of Delaware, and is in good standing with the office of
  the Secretary of State for the State of Delaware; 

                                 (d)
             
  the charter documents of the Company have not been altered since its incorporation
  date and the corporate minute books of the Company are complete and each of
  the minutes contained therein accurately reflect the actions that were taken
  at a duly called and held meeting or by consent without a meeting; 

                                 (e)
             
  the Company carries on business primarily in the State of Texas and does not
  carry on any material business activity in any other jurisdiction; 

                                 (f)
             
  since incorporation the Company has not conducted any business activities other
  than in furtherance of the acquisition of interests in the Leasehold Interests;

                                 (g)
             
  the authorized capital of the Company consists of 3,000 shares of Common Stock,
  $0.001 par value per share; 

                                 (h)
             
  the issued and outstanding share capital of the Company consists of 3,000 shares
  of Common Stock, $0.001 par value per share (being the Company Shares),
  which Company Shares are validly issued and outstanding as fully paid and non-assessable
  shares. The Sellers are the registered and beneficial owners of all of the Company
  Shares. The Company Shares will on Closing be free and clear of any and all
  liens, charges, pledges, encumbrances, restrictions on transfer and adverse
  claims whatsoever; 

 - 5 -

                                 (i)
             
  no person, firm or corporation has any agreement, option, warrant, preemptive
  right or any other right capable of becoming an agreement, option, warrant or
  right for the acquisition of Company Shares held by the Sellers or for the purchase,
  subscription or issuance of any of the unissued shares in the capital of the
  Company; 

                                 (j)
             
  the Company does not have any bank accounts and all cash transactions of the
  Company have been handled through the trust account of the attorney for the
  Company; 

                                 (k)
             
  the Company does not have any accounts payable or other liabilities of any nature
  or kind whatsoever (including debts to related parties) other than accounts
  payable on account of bona fide transactions incurred in normal course of business,
  none of which are more than 30 days in arrears; 

                                 (l)
             no
  dividends or other distributions on any shares in the capital of the Company
  have been made, declared or authorized since the incorporation; 

                                 (m)
             
  there has not been any material adverse change in the financial position or
  condition of the Company which has not been disclosed to the Buyer; 

                                 (n)
             
  the Company holds all permits, licenses and other authorizations as may be required
  for carrying on its business, the Company has not been charged with or received
  notice of breach of any laws, ordinances, statutes, regulations, bylaws, orders
  or decrees to which it is subject or which applies to it, and there is no suit,
  action, investigation, or other proceeding pending or threatened against the
  Company; 

                                 (o)
             
  no proceedings are pending for, and it is unaware of any basis for the institution
  of any proceedings relating to the dissolution or winding up of it or the placing
  of it in bankruptcy or subject to any other laws governing the affairs of insolvent
  persons; 

                                 (p)
             
  the Company is not party to any agreement which provides for the payment of
  finder's fees, brokerage fees, commissions or other fees or amounts which are
  or may become payable to any third party in connection with the execution and
  delivery of this Agreement and the transactions contemplated herein; 

                                 (q)
             
  as at the date hereof, the assets of the Company consist of (i) the Leasehold
  Interests and (ii) cash of $72,488.74; 

                                 (r)
             with
  respect to the Leasehold Interests, (a) there are no royalty provisions (other
  than those allowing a lessor the right to take in kind and other than royalties
  due to governmental entities) requiring the payment of royalties on any basis
  other than proceeds actually received by the lessee, (b) the Leasehold Interests
  are not subject to a fixed term of duration but may be extended indefinitely
  by development operations, and (c) there are no unfulfilled drilling obligations
  affecting the Leasehold Interests and all royalties, rentals and other payments
  due in respect of the Leasehold Interests have been timely paid and all other
  conditions necessary to keep such properties and interests in full force and
  effect during their primary term, and thereafter if commercial production has
  been established thereon or on lands 

 - 6 -

 pooled therewith, have been fully performed; 

                                 (s)
             
  all documents and instruments creating or giving rise to the Leasehold Interests
  are in full force and effect and no breach or default exists thereunder; and

                                 (t)
             
  the Company does not own any subsidiaries and does not otherwise own, directly
  or indirectly, any shares or interest in any other corporation, partnership,
  joint venture or firm. 

                                 3.3
             
  Waiver. The representations and warranties contained in this Article
  3 are provided for the exclusive benefit of the party to whom such representations
  and warranties are made, and a breach of any one or more thereof may be waived
  by such party, in whole or in part, at any time without prejudice to its rights
  in respect of any other breach of the same or any other representation or warranty;
  and the representations and warranties contained in that section shall survive
  the execution hereof. 

                                 3.4
             
  Indemnification. The representations and warranties of the parties hereinbefore
  set out are conditions upon which the parties have relied in entering into this
  Agreement. Any defaulting party shall be liable and shall indemnify and save
  harmless the non-defaulting party from any and all loss (including economic
  loss), costs, damages, actions and suits arising out of or in connection with
  any breach of any representation, warranty, covenant, agreement or condition
  made by it and contained in this Agreement. The representations and warranties
  and indemnification provisions shall survive the date of this Agreement and
  for a period of one (1) year thereafter. 

                 4.
             The
  Closing. 

                                 4.1
             
  Place, Time and Date. The consummation of the transactions contemplated
  by this Agreement (the “Closing”) shall take place at the
  offices of Snell, Wylie and Tibbals, 8150 N. Central Expy., Suite 1800, Dallas,
  TX 75206, at 10:00 a.m. (local time) on June 3, 2005, or at such other place,
  time or date as the parties hereto shall mutually agree (the “Closing
  Date”). 

                                 4.2
             
  Closing Deliveries by Sellers. At the Closing, Sellers shall deliver
  the following to Buyer: 

                                 (a)
             
  the stock certificates representing the Company Shares; 

                                 (b)
             
  the books and records of the Company; and 

                                 (c)
             
  such other documents as may be required by this Agreement or reasonably requested
  by Buyer. 

                                 4.3
             
  Closing Deliveries by Buyer. At the Closing, Buyer shall deliver the
  following to Sellers: 

 - 7 -

                                 (a)
             
  the Certificates representing the Acquisition Shares; and 

                                 (b)
             
  such other documents as may be required by this Agreement or reasonably requested
  by Sellers. 

                 4.
             Conditions
  Precedent to the Obligations of Buyer. 

                                 The
  obligations of Buyer to effect the transactions contemplated under this Agreement
  at the Closing are subject to the fulfillment on or prior to the Closing Date
  of the following conditions, any one or more of which may be waived in whole
  or in part by Buyer in writing: 

                                 4.1
             
  Seller's Performance. Sellers shall have performed and complied with
  all covenants and agreements required by this Agreement to be performed or complied
  with by Sellers on or before the Closing Date. 

                                 4.2
             
  Consents, Notices and Approvals. All consents and approvals necessary
  for consummation of the transactions contemplated by this Agreement shall have
  been received and all notices required to be given in respect of such transactions
  shall have been given on or before the Closing Date. 

                                 4.3
             
  Good Title to the Company Shares. Sellers shall have transferred the
  Company Shares to Buyer, free and clear of all encumbrances, with transfer taxes,
  if any, paid by Sellers. No claim shall have been filed, made or threatened
  by any person or entity asserting that he, she or it is entitled to any part
  of the Acquisition Price in respect of the Company Shares. 

                                 4.4
             
  No Prohibition of Transaction. No action, proceeding or investigation
  (including private causes of action) or regulation or legislation shall have
  been instituted, threatened or proposed before, nor any order issued by, any
  court, governmental agency or authority or legislative body to enjoin, restrain,
  prohibit or obtain substantial damages (i) in respect of, or which is related
  to, or arises out of, this Agreement or the consummation of the transactions
  contemplated by this Agreement; or (ii) which, in the reasonable judgment of
  Buyer, could have a materially adverse effect on its interest in the Company
  Shares. 

                 5.
             Conditions
  Precedent to the Obligations of Sellers. 

                                 The
  obligations of Sellers to effect the transactions contemplated under this Agreement
  at the Closing are subject to the fulfillment on or prior to the Closing Date
  of the following conditions, any one or more of which may be waived in whole
  or in part by Sellers in writing: 

                                 5.1
             
  Buyer's Performance. Buyer shall have performed and complied with all
  covenants and agreements required by this Agreement to be performed or complied
  with by Buyer on or before the Closing Date.

                                 5.2
             
  Authority. All action required to be taken by or on the part of Buyer
  to 

 - 8 -

 authorize the execution, delivery and performance of this
  Agreement by Buyer and the consummation of the transactions contemplated by
  this Agreement shall have been duly and validly taken by Buyer.

                                 5.3
             
  Consents, Notices and Approvals. All consents and approvals necessary
  for consummation of the transactions contemplated by this Agreement shall have
  been received and all notices required to be given in respect of such transactions
  shall have been given on or before the Closing Date. 

                                 5.4
             
  No Prohibition of Transaction. No action, proceeding or investigation
  (including private causes of action) or regulation or legislation shall have
  been instituted, threatened or proposed before, nor any order issued by, any
  court, governmental agency or authority or legislative body to enjoin, restrain,
  prohibit or obtain substantial damages in respect of, or which is related to,
  or arises out of, this Agreement or the consummation of the transactions contemplated
  by this Agreement. 

                 6.
             
  Covenants. 

                                 6.1
             
  Transaction Expenses. Except as expressly otherwise provided herein,
  each party to this Agreement shall bear its respective expenses incurred in
  connection with the preparation, execution and performance of this Agreement
  and the transactions contemplated hereby, including all fees and expenses of
  agents, representatives, counsel and accountants. In the case of termination
  of this Agreement, the obligation of each party to pay its own expenses shall
  be subject to any rights of such party arising from a breach of this Agreement
  by another party. 

                                 6.2
             
  Confidentiality. Each party hereto will maintain in strictest confidence,
  and will cause its directors, officers, employees, partners, agents, advisors
  and other representatives to maintain in strictest confidence, and not use to
  the detriment of any party hereto, any written, oral or other information obtained
  in confidence from any other party hereto regarding the transactions contemplated
  by this Agreement or the business and affairs of the Company; provided, however,
  this confidentiality restriction shall not be applicable if (i) the information
  to be divulged is already known to the divulging party as a result of being
  obtained from others not bound by a duty of confidentiality; (ii) the information
  becomes publicly available through no fault of the divulging party; (iii) the
  use of the information is necessary or appropriate in making any filings or
  obtaining any consent or approval required for the consummation of the transactions
  contemplated hereby; or (iv) the furnishing or use of the information is required
  by or necessary or appropriate in connection with legal proceedings, provided
  that advance notice of such disclosure has been given and the other parties
  have had an opportunity to contest such disclosure. 

                                 6.3
             
  Forward Split. The Purchaser, forthwith after the Closing Date, shall
  cause its outstanding common stock to be forward split on the basis of five
  shares for each one outstanding common share. 

 - 9 -

                 7.
             
  Repurchase Option 

                                 7.1
             
  Repurchase Option. Notwithstanding any other clause in this Agreement,
  in the event that the Company does not close a financing with minimum gross
  proceeds to the Company of Five Million and No/100 Dollars ($5,000,000)
  at a price per share not less than the price per share at which the Acquisition
  Shares are being issued, on or before July 31, 2005, the Sellers shall have
  the right (but not the obligation) to repurchase the Company Shares by surrendering
  to the Buyer the Certificates representing the Acquisition Shares, duly endorsed
  for transfer. 

                                 7.2
             
  Exercise of Option. In order to exercise the Repurchase Option, all of
  the Sellers must, on or before August 31, 2005, deliver to the Buyer notice
  in writing thereof together with the Certificates representing the Acquisition
  Shares, duly endorsed for transfer, and the Buyer shall within five (5) business
  days thereof deliver to the Sellers the Company Shares, duly registered in the
  names of the Sellers and allocated among the Sellers as set forth in Schedule
  “B” attached hereto.

                 8.
             Termination.

                                 8.1
             
  Termination Events. Subject to the provisions of Section 8.2, this Agreement
  may, by written notice given at or prior to the Closing in the manner hereinafter
  provided, be terminated: 

                                 (a)
             
  by either Buyer or Sellers if a material default or breach shall be made by
  the other party hereto with respect to the due and timely performance of any
  of its covenants and agreements contained herein, and such default cannot be
  cured and has not been waived; 

                                 (b)
             
  by Buyer if all of the conditions set forth in Article 4 shall not have been
  satisfied on or before the Closing Date, other than through failure of Buyer
  to fully comply with its obligations hereunder, and shall not have been waived
  by Buyer on or before such date; or

                                 (c)
             
  by Sellers, if all of the conditions set forth in Article 5 shall not have been
  satisfied on or before the Closing Date, other than through failure of Sellers
  to fully comply with its obligations hereunder, and shall not have been waived
  by Sellers on or before such date; 

                                 (d)
             
  by mutual consent of Buyer and Sellers; or 

                                 (e)
             
  by either Buyer or Sellers if the Closing shall not have occurred, other than
  through failure of any such party to fulfill its obligations hereunder, on or
  before June 3, 2005, or such later date as may be mutually agreed upon by the
  parties. 

                                 Each
  party's right of termination hereunder is in addition to any other rights it
  may have hereunder or otherwise and the exercise of a right of termination shall
  not be an election of remedies. 

                                 8.2
             
  Effect of Termination. In the event this Agreement is terminated pursuant

 - 10 -

 to Section 8.1, all further obligations of the parties hereunder
  shall terminate. 

                 9.
             Miscellaneous.

                                 9.1
             
  Notices. Except as otherwise set forth herein, all notices given in connection
  with this Agreement shall be in writing and shall be delivered either by personal
  delivery, by telecopy or similar facsimile means, by certified or registered
  mail, return receipt requested, or by express courier or delivery service addressed
  to the parties hereto at the addresses provided, or at such other address and
  number as either party shall have otherwise designated by written notice given
  to the other party in the manner hereinabove set forth. Notices shall be deemed
  given when received, if sent by telecopy or similar facsimile means (confirmation
  of such receipt by confirmed facsimile transmission being deemed receipt of
  communications sent by telecopy or other facsimile means); and when delivered
  and receipted for (or upon the date of attempted delivery where delivery is
  refused), if hand-delivered, sent by express courier or delivery service, or
  sent by certified or registered mail, return receipt requested. 

                                 9.2
             
  Further Assurances. The parties hereto agree (i) to furnish upon request
  to each other such further information; (ii) to execute and deliver to each
  other such other documents; and (iii) to do such other acts and things, all
  as the other party hereto may at any time reasonably request for the purpose
  of carrying out the intent of this Agreement and the documents referred to herein.

                                 9.3
             
  Waiver. The rights and remedies of the parties to this Agreement are
  cumulative and not alternative. Neither the failure nor any delay on the part
  of any party in exercising any right, power or privilege under this Agreement
  or the documents referred to herein shall operate as a waiver thereof, nor shall
  any single or partial exercise of any such right, power or privilege preclude
  any other or further exercise thereof or the exercise of any other right, power
  or privilege. To the maximum extent permitted by applicable law, (i) no claim
  or right arising out of this Agreement or the documents referred to herein can
  be discharged by one party hereto, in whole or in part, by a waiver or renunciation
  of the claim or right unless in writing signed by the other party hereto; (ii)
  no waiver which may be given by a party hereto shall be applicable except in
  the specific instance for which it is given; and (iii) no notice to or demand
  on one party hereto shall be deemed to be a waiver of any obligation of such
  party or of the right of the party giving such notice or demand to take further
  action without notice or demand as provided in this Agreement or the documents
  referred to herein. 

                                 9.4
             
  Entire Agreement and Modification. This Agreement is intended by the
  parties to this Agreement as a final expression of their agreement with respect
  to the subject matter hereof, and is intended as a complete and exclusive statement
  of the terms and conditions of that agreement. This Agreement may not be modified,
  rescinded, or terminated orally, and no modification, rescission, termination
  or attempted waiver of any of the provisions hereof (including this Section)
  shall be valid unless in writing and signed by the party against whom the same
  is sought to be enforced. 

                                 9.5
             
  Assignments, Successors and No Third-Party Rights. Neither this 

 - 11 -

 Agreement nor any of the rights and obligations hereunder
  may be assigned by either party without the express written consent of the other
  party hereto. This Agreement shall apply to and be binding in all respects upon,
  and shall inure to the benefit of, the successors and permitted assigns of the
  parties hereto. Nothing expressed or referred to in this Agreement is intended
  or shall be construed to give any person or entity other than the parties to
  this Agreement any legal or equitable right, remedy or claim under or with respect
  to this Agreement, or any provision hereof, it being the intention of the parties
  hereto that this Agreement and all of its provisions and conditions are for
  the sole and exclusive benefit of the parties to this Agreement, their successors
  and permitted assigns, and for the benefit of no other person or entity. 

                                 9.6
             
  Severability. In the event any provision of this Agreement shall be held
  invalid or unenforceable by any court of competent jurisdiction, such holding
  shall not invalidate or render unenforceable any other provisions hereof. Any
  provision of this Agreement held invalid or unenforceable only in part or degree
  shall remain in full force and effect to the extent not held invalid or unenforceable.

                                 9.7
             
  Section Headings, Construction. The headings of articles and sections
  contained in this Agreement are provided for convenience only. They form no
  part of this Agreement and shall not affect its construction or interpretation.
  All references to articles and sections in this Agreement refer to the corresponding
  articles and sections of this Agreement. All words used herein shall be construed
  to be of such gender or number as the circumstances require. Unless otherwise
  specifically noted, the words "herein," "hereof," "hereby," "hereinabove," "hereinbelow,"
  "hereunder," and words of similar import, refer to this Agreement as a whole
  and not to any particular section, subsection, paragraph, clause or other subdivision
  hereof. 

                                 9.8
             
  Consent or Permission Not to be Unreasonably Withheld. Except as otherwise
  expressly stated herein, whenever the consent or permission of a party hereto
  is required hereunder, such consent or permission shall not be unreasonably
  withheld or delayed. 

                                 9.9
             
  Time of Essence. With regard to all time periods set forth or referred
  to in this Agreement, time is of the essence. 

                                 9.10
            Governing
  Law. This Agreement shall be governed by, and construed under, the laws
  of the State of Texas without regard to conflicts of laws, all rights and remedies
  being governed by such laws. 

                                 9.11
            Counterparts.
  This Agreement may be executed in one or more counterparts, each of which shall
  be deemed to be an original copy of this Agreement, and all of which, when taken
  together, shall be deemed to constitute but one and the same agreement. 

                                 9.12
            Power
  of Attorney to Transfer Company Shares. This Agreement shall serve as a
  limited power of attorney to transfer the certificate representing the Company
  Shares from the Sellers to the Buyer. 

- 12 -

[Remainder of page intentionally left blank.]

 Signatures 

                 To
  evidence the binding effect of the covenants and agreements described above,
  Sellers and Buyer have each caused this Agreement to be executed by their respective
  duly authorized officers as of the date first written above. 

	 	 Sellers:  
	 	 	  
	 	 
	 	 HOLYWELL TECHNOLOGICAL  
	 	 INVESTMENTS LTD.  
	 	 	 
	 	 By:  	 /s/ Clive Dawson  
	 	  	 Clive Dawson  
	 	 
	 	 FIRST FINANCE LIMITED
	 	 	 
	 	 By:  	 /s/ Andrew Hromyk  
	 	  	 Andrew Hromyk  
	 	  	 
	 	 Buyer:  
	 	 
	 	 TERAX ENERGY, INC.  
	 	 	 
	 	 By:  	 /s/ J. William Rhea, IV  
	 	  	 J. William Rhea, IV  
	 	  	Chief Executive Officer 

This is page 13 to the Stock Purchase and Sale Agreement dated May 31st, 2005 between the above parties.Exhibit 10

Exhibit 10.1

EGPI FIRECREEK, INC.

6564 Smoke Tree Lane

Scottsdale, AZ  85253

May 31, 2005

AJW Partners, LLC

AJW Offshore, Ltd. 

AJW Qualified Partners, LLC 

New Millennium Capital Partners II, LLC

1044 Northern Boulevard

Suite 302

Roslyn, New York 11576

Re:

EGPI Firecreek, Inc. (the “Company”) – 

Repurchase of Warrants and Issuance of Shares

Ladies and Gentlemen:

This letter sets forth the agreement among the parties pursuant to which (i) the Company will purchase from the investors listed on Schedule I hereto (collectively, the “Investors”) all of the warrants (the “Warrants”) to purchase common stock, par value $.001 per share, of the Company (“Common Stock”) owned by the Investors, for an aggregate purchase price of $100,000, and (ii) the Company will issue to the Investors an aggregate of 4,000,000 shares of Common Stock as set forth on Schedule II hereto (the “Shares”), which Shares shall be entitled to registration rights as provided for herein. 

By execution hereof, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree that:

1.

The Company hereby agrees to repurchase from the Investors an aggregate of 32,768,782 Warrants for an aggregate purchase price of $100,000 (the “Purchase Price”), to be paid as follows: (i) $20,000 shall be returned to the Investors out of the escrow arrangement established on May 2, 2005 and (ii) $80,000 shall be paid by the Company to the Investors by wire transfer of immediately available funds to the accounts designated by the Investors.  The Investors will receive their respective portion of the Purchase Price as set forth on Schedule I hereto.

2.

The Company hereby agrees to issue to the Investors an aggregate of 4,000,000 shares of Common Stock (collectively, the “Shares”), which shares will be distributed to the Investors in the amounts set forth on Schedule II hereto.

3.

The Shares will be entitled to registration rights as set forth in that certain Registration Rights Agreement of even date herewith in the form attached as Exhibit A hereto.

1

4.

The Company shall have the right, for a period of sixty (60) days from the date hereof, to purchase the Shares, in whole but not in part, for an aggregate purchase price $150,000, to be paid by wire transfer of immediately available funds to the accounts designated by the Investors.

5.

The Company shall use its best efforts to close the transaction on May 31, 2005 and will close the transaction no later than June 3, 2005.  In the event the transactions contemplated by this agreement are not consummated by June 3, 2005, this agreement shall be deemed null and void with no binding obligation on the part of either party.

The parties shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other parties hereto may reasonably request in order to carry out the intent and accomplish the purposes of this letter agreement, including without limitation the prompt issuance of stock certificates representing the Shares.

[Signature Page Follows]

2

Please signify your agreement with the foregoing by signing a copy of this letter where indicated and returning it to the undersigned.

Sincerely,

EGPI FIRECREEK, INC.

/s/ Dennis R. Alexander

Dennis R. Alexander

ACCEPTED AND AGREED:

Chairman and CFO

AJW PARTNERS, LLC

By:  SMS GROUP, LLC

/s/ Corey S. Ribotsky

Corey S. Ribotsky, Manager

AJW OFFSHORE, LTD.

By: FIRST STREET MANAGER II, LLC

/s/ Corey S. Ribotsky

Corey S. Ribotsky, Manager

AJW QUALIFIED PARTNERS, LLC

By: AJW MANAGER, LLC

/s/ Corey S. Ribotsky

Corey S. Ribotsky, Manager

NEW MILLENNIUM CAPITAL PARTNERS II, LLC

By: FIRST STREET MANAGER II, LLC,

/s/ Corey S. Ribotsky

Corey S. Ribotsky, Manager

3

SCHEDULE I

	 	Warrants

	Payment From Escrow 

	Payment From Company

	AJW Partners LLC

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	4,960,317

	$3,000

	$12,000

	AJW Offshore, Ltd.

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	16,203,704

	$9,800

	$39,200

	AJW Qualified Partners, LLC

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	11,574,074

	$7,000

	$28,000

	New Millennium Capital Partners II, LLC

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	30,687

	$200

	$800

	Total

	32,768,782

	$20,000

	$80,000

4

SCHEDULE II

	 	Number of Shares

	AJW Partners LLC

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	 600,000

	AJW Offshore, Ltd.

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	 1,960,000

	AJW Qualified Partners, LLC

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	 1,400,000

	New Millennium Capital Partners II, LLC

1044 Northern Blvd. Suite 302

Roslyn, New York 11576

	 40,000

	             Total

	 4,000,000

5

EXHIBIT A

Registration Rights Agreement

6

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