Document:

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                                                                  Exhibit 10.137

                           PURCHASE AND SALE AGREEMENT

         This Purchase and Sale Agreement ("Agreement") dated as of 1st day of
April, 2001, is by and between Strand Energy, L.C. ("Seller"), and Castle
Exploration Company, Inc. ("Buyer"), relative to the "Interests" (as hereinafter
defined).

         In consideration of the mutual promises contained herein, the benefits
to be derived by each party hereunder and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller
agree as follows:

                                    ARTICLE I

                                PURCHASE AND SALE

         1.01  Purchase and Sale. Seller agrees to sell and convey and Buyer
agrees to purchase and pay for the Interests subject to the terms and conditions
of this Agreement.

         1.02  Interests. All of the following (except for the "Excluded Assets"
defined below) shall be referred to as the "Interests":

               (a) The undivided interests described in Exhibit "A" hereto, in
and to the entire estates created by the leases, licenses, permits and other
agreements described in Exhibit "A" (the "Leases") insofar as the Leases cover
and relate to the lands described in Exhibit "A" (the "Lands"), together with
(i) all rights, privileges, benefits and powers conferred upon the holder of the
Leases with respect to the use and occupation of the surface of the Lands that
may be necessary, convenient or incidental to the possession and enjoyment of
the Leases, (ii) all rights in respect of any pooled or unitized acreage located
in whole or in part within the Lands by virtue of the Leases, including rights
to production from the pool or unit allocated to any Lease being a part thereof,
regardless of whether such production is from the Lands, (iii) all rights,
options, titles and interests of Seller granting Seller the right to obtain, or
otherwise earn interests within the Lands no matter how earned, and (iv) all
tenements, hereditaments and appurtenances belonging to any of the foregoing;

               (b) Identical undivided interests in and to all of the oil and
gas wells, saltwater disposal wells and injection wells (the "Wells") and all of
the personal property, fixtures and improvements now or as of the Effective Time
(as defined in Section 1.04 below) on the Lands, appurtenant thereto or used in
connection therewith or with the production, treatment, sale or disposal of
hydrocarbons or water produced therefrom or attributable thereto and all other
appurtenances thereunto belonging;

               (c) The contracts and contractual rights, obligations and
interest, including all farmout agreements, farmin agreements, drilling
contracts, operating agreements, sales contracts, saltwater disposal agreements,
division orders and transfer orders and other contracts or agreements covering
or affecting any or all of the Leases and/or Lands; and

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               (d) The easements, licenses, authorizations, permits and similar
rights and interests applicable to, or pertinent to, the ownership and operation
of the Wells.

         1.03  Excluded Assets. As used herein, "Excluded Assets" means (a) all
trade credits and all accounts, instruments and general intangibles (as such
terms are defined in the Texas Uniform Commercial Code) attributable to the
Interests with respect to any period of time prior to the Effective Time; (b)
all claims and causes of action of Seller (i) arising from acts, omissions or
events, or damage to or destruction of property, occurring prior to the
Effective Time, (ii) arising under or with respect to any contracts that are
attributable to periods of time prior to the Effective Time (including claims
for adjustments or refunds), or (iii) with respect to any of the Excluded
Assets; (c) all rights and interests of Seller (i) under any policy or agreement
of insurance or indemnity, (ii) under any bond, or (iii) to any insurance or
condemnation proceeds or awards arising, in each case, from acts, omissions or
events, or damage to or destruction of property, occurring prior to the
Effective Time; (d) all substances produced and sold from the Lands and Leases
with respect to all periods prior to the Effective Time, together with all
proceeds from or of such substances; (e) claims of Seller for refunds of or loss
carry forwards with respect to (i) production or any other taxes attributable to
any period prior to the Effective Time, (ii) income or franchise taxes, or (iii)
any taxes attributable to the Excluded Assets; (f) all amounts due or payable to
Seller as adjustments to insurance premiums related to the Interests with
respect to any periods prior to the Effective Time; (g) all proceeds, income or
revenues (and any security or other deposits made) attributable to (i) the
Interests for any period prior to the Effective Time, or (ii) any Excluded
Assets; (h) all personal computers and associated peripherals and all radio and
telephone equipment; (i) all of Seller's proprietary computer software, patents,
trade secrets, copyrights, names, trademarks, logos and other intellectual
property; (j) all of Seller's interpretations of geological and geophysical
data; (k) all documents and instruments of Seller that may be protected by an
attorney-client privilege; (l) data that cannot be disclosed or assigned to
Buyer as a result of confidentiality arrangements under agreements with persons
unaffiliated with Seller; (m) all audit rights arising under any contracts or
otherwise with respect to any period prior to the Effective Time or to any of
the Excluded Assets; and (n) all (i) agreements and correspondence between
Seller and its representatives and any affiliates thereof relating to the
transactions contemplated in this Agreement, (ii) lists of prospective
purchasers for such transactions compiled by Seller or its representatives,
(iii) bids submitted by other prospective purchasers of the Interests, (iv)
analyses by Seller or its representatives of any bids submitted by any
prospective purchaser, (v) correspondence between or among Seller or its
representatives, or either of their respective representatives, and any
prospective purchaser other than Buyer, and (vi) correspondence between Seller
or its representatives, or any of their respective representatives with respect
to any of the bids, the prospective purchasers, the engagement or activities of
its representatives or the transactions contemplated in this Agreement.

               1.04 Effective Time. The purchase and sale of the Interests shall
be effective for all purposes as of April 1, 2001 at 12:01 a.m., local time at
the location of the Interests (the "Effective Time").

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                                   ARTICLE II

                                 PURCHASE PRICE

         2.01  Purchase Price. The purchase price for the Interests shall be Ten
Million Six Hundred and Twenty-Five Thousand Dollars and No/100 Dollars
($10,625,000.00) (the "Purchase Price"), which shall be adjusted as set forth in
Section 2.03 below.

         2.02  Deposit. To bind this transaction, Buyer concurrent with the date
of execution of this Agreement has deposited with Seller, either by cashier's
check or wire transfer (pursuant to instructions provided by Seller), the sum of
One Million Sixty Two Thousand Five Hundred Dollars and No/100 Dollars
($1,062,500.00) (the "Deposit"), which shall be either (a) applied toward a
reduction in the Purchase Price at Closing Date, (b) returned by Seller to
Buyer, or (c) forfeited by Buyer to Seller, all as otherwise provided in this
Agreement.

         2.03  Adjustments to Purchase Price. The Purchase Price shall be
adjusted as follows and the resulting amount shall be referred to as the
"Adjusted Purchase Price":

               (a) The Purchase Price shall be adjusted upward as follows:

                   (i)   The value of all oil and gas in storage or in pipelines
or the tanks and above the pipeline connection or upstream of the sales meter as
of the Effective Time which is credited to the Interests, such value to be the
market value or, if applicable, the contract price in effect as of the Effective
Time, less taxes and deductions by the purchaser;

                   (ii)  The amount of all verifiable expenditures under
applicable operating agreements or other similar arrangements or agreements and,
in the absence of such agreements, such expenses of the sort customarily billed
thereunder, paid by Seller in connection with the Interests for the period
subsequent to the Effective Time;

                   (iii) An amount equal to all prepaid expenses attributable to
the Interests that are paid by Seller or any affiliate of Seller prior to the
Closing Date (defined below) that inure to the benefit of Buyer and that are, in
accordance with generally accepted accounting principles, attributable to the
period after the Effective Time, including without limitation, prepaid ad
valorem, property, production, severance and similar taxes (but not including
income taxes) based upon or measured by the ownership of property or the
production of hydrocarbons or the receipt of proceeds therefrom;

                   (iv)  An amount equal to $1.25 per Mcf of the underproduced
gas imbalance with respect to any gas production, pipeline, storage, processing
or other gas imbalance attributable to the Interests as of the Effective Time;
and

                   (v)   Any other amount agreed upon by Seller and Buyer.

               (b) The Purchase Price shall be adjusted downward by the
following:

                   (i)   The value of proceeds received by Seller from the sale
of oil, gas or other hydrocarbons attributable to the Interests and relating to
production after the Effective Time, less all applicable taxes not reimbursed to
Seller by a purchaser;

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                   (ii)  An amount equal to all unpaid ad valorem, property,
production, severance and similar taxes and assessments (but not including
income taxes) based upon or measured by the ownership of property or the
production of hydrocarbons or the receipt of proceeds therefrom accruing to the
Interests prior to the Effective Time, currently estimated to be 25% of the
annual assessment;

                   (iii) The amount of all verifiable expenditures paid by Buyer
for work actually done and performed in connection with the Interests for the
period prior to the Effective Time;

                   (iv)  The amount of the Deposit;

                   (v)   An amount equal to $1.25 per Mcf of the overproduced
gas imbalance with respect to any gas production, pipeline, storage, processing
or other gas imbalance attributable to the Interests as of the Effective Time;

                   (vi)  The amount of all proceeds from production attributable
to the Interests which are currently held in suspense, if any, for which Buyer
shall assume responsibility; and

                   (vii) Any other amount agreed upon by Seller and Buyer.

         2.04  Allocation of Purchase Price. The Purchase Price shall be
allocated ("Allocated Value") among the Interests as set forth in Exhibit "B"
hereto and which is subject to Seller's approval.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         3.01  Representations and Warranties of Seller. Seller represents and
warrants to Buyer as follows:

               (a) Seller is a Texas limited liability company duly organized,
validly existing and in good standing under the laws of its state of
organization, and is duly qualified to carry on its business in each of the
states identified in Exhibit "A".

               (b) Seller has the requisite power and authority to carry on its
business as presently conducted, to enter into this Agreement, to sell the
Interests on the terms described in this Agreement and to perform its
obligations under this Agreement. The consummation of the transactions
contemplated by this Agreement will not violate, nor be in conflict with, any
provision of Seller's governing documents, or any agreement or instrument to
which Seller is a party or is bound, or any judgment, decree, order, statute,
rule or regulation applicable to Seller.

               (c) The execution, delivery and performance of this Agreement and
the transactions contemplated hereby have been duly and validly authorized by
all requisite action on the part of Seller.

               (d) This Agreement has been duly executed and delivered on behalf
of Seller, and at the Closing all documents and instruments required hereunder

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to be executed and delivered by Seller shall have been duly executed and
delivered. This Agreement does, and such documents and instruments shall,
constitute legal and valid obligations of Seller.

               (e) Seller has incurred no liability, contingent or otherwise,
for brokers' or finders' fees relating to the transactions contemplated by this
Agreement for which Buyer shall have any responsibility whatsoever.

               (f) Except as set forth in Schedule 3.01(f) attached hereto
("Pending Claims"), no claim, demand, filing, hearing, notice of violation,
proceeding, notice or demand letter, investigation, administrative proceeding,
civil, criminal or other action, suit or other legal proceeding is pending or,
to the best of Seller's knowledge, threatened, against Seller relating to,
resulting from or affecting the ownership or operation of the Interests. No
notice from any governmental authority or any other person (including employees)
has been received by Seller as to any claim, demand, filing, hearing, notice of
violation, proceeding, notice or demand letter, relating to, resulting from or
affecting the ownership or operation of the Interests, claiming any violation of
any law, statute, rule, regulation, ordinance, order, decision or decree of any
governmental authority (including, without limitation, any such law, rule,
regulation, ordinance, order, decision or decree concerning the conservation of
natural resources) or claiming any breach of contract or agreement with any
third party.

               (g) Seller represents that in aggregate as to all the wells being
purchased hereunder no gas imbalance exists that is in excess of 5,000 mcf.

         3.02  Representations and Warranties of Buyer. Buyer represents and
warrants to Seller as follows:

               (a) Buyer is a Pennsylvania corporation duly organized, validly
existing and in good standing under the laws of its state of organization and is
duly qualified to carry on its business in each of the states identified in
Exhibit "A".

               (b) Buyer has all requisite power and authority to carry on its
business as presently conducted, to enter into this Agreement, to purchase the
Interests on the terms described in this Agreement and to perform its other
obligations under this Agreement. The consummation of the transactions
contemplated by this Agreement will not violate, nor be in conflict with, any
provision of Buyer's governing documents, or any agreement or instrument to
which Buyer is a party or is bound, or any judgment, decree, order, statute,
rule or regulation applicable to Buyer.

               (c) The execution, delivery and performance of this Agreement and
the transactions contemplated hereby have been duly and validly authorized by
all requisite action on the part of Buyer.

               (d) This Agreement has been duly executed and delivered on behalf
of Buyer, and at the Closing all documents and instruments required hereunder to
be executed and delivered by Buyer shall have been duly executed and delivered.
This Agreement does, and such documents and instruments shall, constitute legal
and valid obligations of Buyer.

               (e) Buyer has incurred no liability, contingent or otherwise, for
brokers' or finders' fees relating to the transactions contemplated by this
Agreement for which Seller shall have any responsibility whatsoever.

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               (f) Prior to executing this Agreement, Buyer has been afforded an
opportunity to (i) examine the Interests and such materials as it has requested
to be provided to it by Seller, (ii) discuss with representatives of Seller such
materials and the nature and operation of the Interests, and (iii) investigate
the condition, including subsurface condition, of the Lands and Leases and the
condition of the equipment in connection with the Wells. In entering into this
Agreement, Buyer has relied solely on the express representations and covenants
of Seller in this Agreement, its independent investigation of, and judgment with
respect to, the Interests and the advice of its own legal, tax, economic,
environmental, engineering, geological and geophysical advisors and not on any
comments or statements of any representatives of, or consultants or advisors
engaged by, Seller or its representatives.

               (g) Prior to the Closing, Buyer intends to satisfy all bonding
and regulatory requirements of all state and federal governmental authorities so
that Buyer is qualified to own the Interests. The consummation of the
transactions contemplated hereby will not cause Buyer to be disqualified as an
owner of state or federal oil, gas and mineral leases, or to exceed any acreage
limitation imposed by any law, statute, rule or regulation.

               (h) Buyer is an experienced and knowledgeable investor and
operator in the oil and gas business. Buyer is acquiring the Interests for its
own account and not with a view to, or for offer of resale in connection with, a
distribution thereof, within the meaning of the Securities Act of 1933, 15
U.S.C.ss.77a et seq., and any other rules, regulations and laws pertaining to
the distribution of securities.

               (i) Buyer has arranged to have available by the Closing Date
sufficient funds to enable the payment to Seller by wire transfer the Adjusted
Purchase Price in accordance with Section 7.03 hereof and to otherwise perform
Buyer's obligations under this Agreement.

                                   ARTICLE IV

                                    COVENANTS

         4.01  Covenants of Seller. Seller covenants and agrees with Buyer that
from the date hereof to the Closing Date, except (i) as provided herein, (ii) as
required by any obligation, agreement, lease, contract or instrument affecting
the Interests, or (iii) as otherwise consented to in writing by Buyer, Seller
shall:

               (a) Give Buyer and its representatives access to, and the right
to copy, at Buyer's expense, all nonproprietary information in its possession
relating to the Interests which shall include, without limitation, title
opinions, abstracts of title, land records, accounting records, production
records, operating expense records, engineering, geological and geophysical
data, development plans and permits, and any other information of whatsoever
kind relating to the production and operation of the Interests. All such
information shall be open to inspection and photocopying at The Oil and Gas
Clearinghouse's offices, at any reasonable time during the term of this
Agreement, but until subsequent to the Closing shall remain confidential and
shall not be disclosed to any third party other than Buyer's employees and
agents.

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               (b) Not (i) enter into any new agreements or commitments with
respect to the Interests which terms would extend beyond the Closing, (ii)
conduct any single capital or workover project with respect to the Interests in
excess of Twenty Thousand and No/100 Dollars ($20,000.00), (iii) abandon any
Well located on the Leases nor release or abandon all or any portion of any of
the Leases, (iv) modify or terminate any of the existing agreements and (v)
encumber, sell or otherwise dispose of any of the Interests other than personal
property that is replaced by equivalent property or consumed in the normal
operation of the Interests.

               (c) Take or cause to be taken all such actions as may be
necessary or advisable to consummate and make effective the sale of the
Interests and the transactions contemplated by this Agreement and to assure that
as of the Closing Date it will not be under any material organizational, legal
or contractual restriction that would prohibit or delay the timely consummation
of such transactions.

               (d) Cause all the representations and warranties of Seller
contained in this Agreement to be true and correct on and as of the Closing
Date.

               (e) Notify Buyer (i) if any representation or warranty of Seller
contained in this Agreement is discovered to be or becomes untrue, or (ii) if
Seller fails to perform or comply with any covenant or agreement contained in
this Agreement or it is reasonably anticipated that Seller will be unable to
perform or comply with any covenant or agreement contained in this Agreement.

         4.02  Covenants of Buyer. Buyer covenants and agrees with Seller that
from the date hereof to the Closing Date, except (i) as provided herein, or (ii)
as otherwise consented to in writing by Seller, Buyer shall:

               (a) Take or cause to be taken all such actions as may be
necessary or advisable to consummate and make effective the purchase of the
Interests and the transactions contemplated by this Agreement and to assure that
as of the Closing Date it will not be under any material organizational, legal
or contractual restriction that would prohibit or delay the timely consummation
of such transactions.

               (b) Cause all the representations and warranties of Buyer
contained in this Agreement to be true and correct on and as of the Closing
Date.

               (c) Promptly notify Seller (i) if any representation or warranty
of Buyer contained in this Agreement is discovered to be or becomes untrue, or
(ii) if Buyer fails to perform or comply with any covenant or agreement
contained in this Agreement or it is reasonably anticipated that Buyer will be
unable to perform or comply with any covenant or agreement contained in this
Agreement.

                                    ARTICLE V

                      TITLE MATTERS, ENVIRONMENTAL MATTERS,
                          CASUALTY LOSS AND ABANDONMENT

         5.01  Seller's Title. Seller represents to Buyer that Seller's title to
the Interests as of the Effective Time is (and as of the Closing shall be)
"Marketable Title" as defined in Section 5.02 hereinbelow.

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         5.02  Definition of Marketable Title. As used in this Agreement, the
term "Marketable Title" shall mean, as to each of the Interests, that the title
acquired by Buyer:

               (a) Will entitle Buyer to receive not less than the Net Revenue
Interests set forth in Exhibit "A" and a like share of all hydrocarbons
produced, saved and marketed from the Interests throughout the productive life
thereof except for any reduction, suspension on termination caused by Permitted
Encumbrances.

               (b) Will obligate Buyer to bear not more than that percentage of
the costs and expenses related to the maintenance and development of and
operations of the Working Interests as set forth on Exhibit "A" and a like share
attributable thereto throughout the productive life of the Interests except for
any increase caused by Permitted Encumbrances.

               (c) Is free and clear of all liens, security interests,
encumbrances, burdens and claims of any kind, by, through or under Seller, but
not otherwise, except for Permitted Encumbrances.

         5.03  Definition of Permitted Encumbrances. As used herein, the term
"Permitted Encumbrances" shall mean:

               (a) Lessors' royalties, overriding royalties, reversionary
interests and similar burdens, whether recorded or unrecorded, that do not
operate to reduce the Net Revenue Interests set forth in Exhibit "A" other than
such burdens as are presently affecting such Interests.

               (b) Division orders and sales contracts terminable without
penalty upon no more than thirty (30) days' notice to the purchaser.

               (c) Except as provided in Section 5.06 below, preferential rights
to purchase and required third-party consents and similar agreements with
respect to which waivers or consents are obtained under this Agreement prior to
the Closing from the appropriate parties or the appropriate time period for
asserting the right has expired prior to the Closing without an exercise such
right.

               (d) Encumbrances relating to the Interests that arise under
operating agreements to secure payment of amounts not yet delinquent and are of
a type and nature customary in the oil and gas industry.

               (e) Encumbrances relating to the Interests securing payments to
mechanic's and materialmen and encumbrances securing payment of taxes or
assessments that are, in either case, not yet delinquent or, if delinquent, are
being contested in good faith in the normal course of business.

               (f) All rights to consent by, required notices to, filings with,
or other actions by governmental entities in connection with the sale or
conveyance of oil and gas leases or interests therein if they are customarily
obtained subsequent to the sale or conveyance.

               (g) Conventional rights of reassignment obligating Seller to
reassign its interest in any portion of the Interests to a third party in the
event it intends to release or abandon such Interests prior to the expiration of
the primary term or other termination of such Interests.

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               (h) Easements, rights of way, servitudes, permits, surface
leases, surface use restrictions and other surface uses and impediments on, over
or in respect to any of the Interests that do not, taken as a whole, materially
interfere with the operation, value or use of the Interests.

               (i) All rights reserved to or vested in any governmental,
statutory or public authority to control or regulate any of the Interests in any
manner, and all applicable laws, rules and orders of governmental authority.

               (j) Such Title Defects affecting the Interests which Buyer fails
to deliver to Seller in writing as provided in Section 5.05(b) below.

               (k) Failure of Seller to own of record all of the Interests if
Seller shall acquire record title to all of the Interests (which shall be
acquired from its partners) no later than seven (7) days prior to the Closing
Date, which Interests shall be free and clear of all liens, security interests,
encumbrances, burdens and claims of any kind, by through or under Seller, but
not otherwise.

         5.04  Definition of Title Defect. As used in this Agreement the term
"Title Defect" shall mean any defect which renders title to an Interest, as
herein defined, less than Marketable Title.

         5.05  Title Procedure.

               (a) As used herein, "Title Defect" Amount shall mean, with
respect to any reduction of the Net Revenue Interest set forth on Exhibit "A"
hereto, an amount calculated by multiplying the reduction in the Net Revenue
Interest by the Allocated Value for such affected Interests; with respect to any
increase in the Working Interest set forth on Exhibit "A" hereto, an amount
calculated by multiplying the increase in the Working Interest by the Allocated
Value for such affected Interests; and with respect to any Title Defect that
does not cause the Net Revenue Interest set forth on Exhibit "A" to decrease or
cause the Working Interest set forth on Exhibit "A" to increase, an amount
determined by evaluating the portion of the Interest affected by such Title
Defect, the legal effect of the Title Defect, and the potential economic effect
of the Title Defect over the life of the affected Interests. The Title Defect
Amount as to any particular Interests, however, shall never exceed the Allocated
Value therefor. Furthermore, in the event it is determined that the Net Revenue
Interests for any affected Interest is greater than set forth on Exhibit "A"
hereto or the Working Interests for any affected Interest are less than set
forth on Exhibit "A" hereto, the Purchase Price shall be proportionately
adjusted upward by multiplying the increase in the Net Revenue Interest by the
Allocated Value for such affected Interest or multiplying the decrease in the
Working Interest by the Allocated Value for such affected Interest.
Notwithstanding anything contained in this Agreement to the contrary, no
adjustment to the Purchase Price for Title Defects shall be made with respect to
all Title Defect Amounts asserted by Buyer which are less than five percent (5%)
of the Purchase Price.

               (b) If Buyer discovers any Title Defect, Buyer shall give Seller
notice of such Title Defect no later than ten (10) days prior to the Closing
Date. Such notice shall be in writing and shall include (i) a description of the

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Title Defect and (ii) the Title Defect Amount therefor, provided that Buyer
shall have an additional two (2) business days to provide notice regarding title
defects on those interests acquired by Seller pursuant to 5.03 (k) above. Buyer
shall be deemed to have waived all Title Defects to which Buyer has not given
timely notice to Seller thereof.

               (c) Seller shall notify Buyer in writing no later than five (5)
days before the Closing Date whether it elects to cure the alleged Title Defect.
If Seller has elected to cure the Title Defect, then the Interests subject to
the Title Defect shall not be assigned at the Closing and Seller shall use
commercially reasonable efforts to cure such Title Defect during a period ending
sixty (60) days after Closing. Notwithstanding the foregoing, Seller shall be
under no obligation to cure any Title Defect unless Seller otherwise expressly
agrees in writing to cure such Title Defect.

               (d) With respect to any Title Defect that Seller elects not to
cure, Seller shall have the option to:

                   (i)   Exclude the Interest, including pipelines and other
personal property necessary to operate the particular Interest subject to the
Title Defect in which event the Purchase Price shall be reduced by the Allocated
Value of the excluded Interest; or

                   (ii)  Sell the Interest subject to such Title Defect to Buyer
and the Purchase Price shall be reduced by the Title Defect Amount.

               (e) Notwithstanding any terms contained in this Agreement to the
contrary, in the event the aggregate amount of the Title Defects and the
Environmental Defects set forth in Section 5.07 hereinbelow and which Seller
does not agree to timely cure, exceeds twenty percent (20%) of the Purchase
Price, either Seller or Buyer may elect to terminate this Agreement and Buyer
shall be entitled to an immediate refund of the Deposit.

         5.06  Consents and Preferential Rights.

               (a) If any third party consent to the sale and transfer of the
Interests is not obtained prior to the Closing, Buyer shall not treat that
portion of the Interests subject to such consent requirement as a Title Defect
if such consent is customarily secured after the Closing or such consent does
not materially affect the value of the Interests if such consent were withheld.

               (b) If any of the Interests are subject to preferential right to
purchase, Seller shall in a good faith attempt, prior to the Closing Date,
notify each third party which holds a preferential right to purchase covering
that portion of the Interests subject thereto. If the notice period under any
preferential right to purchase has not expired prior to the Closing Date, Buyer
shall nevertheless purchase that portion of the Interests which may be affected
by the exercise of such preferential right but the Interests subject to such
unexpired preferential right shall not be treated as a Title Defect. If after
the Closing any party holding a preferential right to purchase elects to
exercise same, Buyer shall then coordinate with Seller in connection with the
execution by such third party of a purchase and sale agreement substantially in
the form hereof. Buyer shall be due any consideration paid by such third party
upon the exercise of such preferential right to purchase in exchange for Buyer

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delivering such third party an assignment for that portion of the Interests
affected by the exercise of such preferential right.

         5.07  Environmental Procedure.

               (a) Prior to the Closing Date, Buyer may conduct a field
inspection of the Interests and Buyer may further secure, at its sole risk, cost
and expense, an environmental audit of all or any of the Interests. If obtained,
Buyer shall immediately furnish a copy of such environmental audit to Seller and
the contents of such environmental audit shall remain confidential unless
required to be disclosed by any rule, order or governmental proceeding.

               (b) As used herein, "Environmental Defect" shall mean any
material environmental defect relating to the Interests in the nature of
environmental pollution or contamination, including pollution of the soil,
ground water or the air, and which is a violation of environmental or land use
rules, regulations, or orders of appropriate state or federal regulatory
agencies.

               (c) As used herein, "Environmental Defect Amount" means the cost
to remediate such Environmental Defect in accordance with applicable
environmental laws. Notwithstanding the foregoing, no adjustment to the Purchase
Price shall be made for Environmental Defects for all Environmental Defect
Amounts asserted by Buyer which are less than two and one-half percent (2.5%) of
the Purchase Price.

               (d) If Buyer discovers any Environmental Defect, Buyer shall give
Seller notice of such Environmental Defect no later than ten (10) days prior to
the Closing Date. Such notice shall be in writing and shall include (i) a
description of the Environmental Defect and (ii) the Environmental Defect Amount
therefor. Buyer shall be deemed to have waived all Environmental Defects to
which Buyer has not given timely notice to Seller thereof.

               (e) Seller shall notify Buyer in writing no later than five (5)
days before the Closing Date whether it elects to cure the alleged Environmental
Defect. If Seller has elected to cure the Environmental Defect, then the
Interest subject to the Environmental Defect shall not be assigned at the
Closing and Seller shall use commercially reasonable efforts to cure such
Environmental Defect during a period ending one hundred eighty (180) days after
Closing. The Environmental Defect Amount as to any particular Interests,
however, shall never exceed the Allocated Value therefor. Notwithstanding the
foregoing, Seller shall be under no obligation to cure any Environmental Defect
unless Seller otherwise expressly agrees in writing to cure such Environmental
Defect.

               (f) With respect to any Environmental Defect that Seller elects
not to cure, Seller shall have the option to:

                   (i)   Exclude the Interest, including pipelines and other
personal property necessary to operate the particular Interest subject to the
Environmental Defect, in which event the Purchase Price shall be reduced by the
Environmental Defect Amount; or

                   (ii)  Sell the Interest subject to the Environmental Defect
to Buyer and the Purchase Price shall be reduced by the Environmental Defect
Amount.

                                      -11-
<PAGE>

               (g) Notwithstanding any terms contained in this Agreement to the
contrary, in the event the aggregate amount of the Environmental Defects and the
Title Defects set forth in Section 5.05 hereinabove exceeds twenty percent (20%)
of the Purchase Price, either Seller or Buyer may elect to terminate this
Agreement and Buyer shall be entitled to an immediate refund of the Deposit.

         5.08  Casualty Loss. If, prior to the Closing, all or any portion of
the Interests shall be destroyed by fire or other casualty, or if any portion of
the Interests shall be taken in condemnation or under the right of eminent
domain or if proceedings for such purposes shall be pending or threatened, this
Agreement shall remain in full force and effect notwithstanding any such
destruction or taking, and Seller shall at Closing pay to Buyer all sums paid to
Seller by reason of such destruction or taking. In addition, Seller shall
assign, transfer and set over unto Buyer all of the right, title and interest of
Seller in and to any unpaid awards or other payments arising out of such
destruction or taking. Seller shall not voluntarily compromise, settle or adjust
any amounts payable by reason of such destruction or taking without first
obtaining the written consent of Buyer.

         5.09  Plugging and Abandonment. Upon Closing, Buyer shall assume all of
Seller's plugging, replugging, abandonment, removal, disposal and restoration
obligations associated with the Interests acquired hereunder. Such obligations
being assumed shall include, but not be limited to, all necessary and proper
plugging and abandonment and/or removal and disposal of all of the Wells,
whether pre-existing or drilled by Seller, and all structures, personal property
and equipment located on or associated with the Leases listed on Exhibit "A",
the necessary and proper capping and burying of all associated flow lines, and
any necessary disposal of naturally occurring radioactive material (NORM) or
asbestos. All plugging, replugging, abandonment, removal, disposal and
restoration operations shall be in compliance with applicable laws and
regulations and conducted in a good and workmanlike manner.

         5.10  Disclaimer of Warranties. THE EXPRESS REPRESENTATIONS AND
WARRANTIES OF SELLER CONTAINED IN THIS AGREEMENT (OR IN THE ASSIGNMENT TO BE
EXECUTED PURSUANT TO THIS AGREEMENT) ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER
REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, AND
SELLER EXPRESSLY DISCLAIMS ANY AND ALL SUCH OTHER REPRESENTATIONS AND
WARRANTIES. WITHOUT LIMITATION OF THE FOREGOING THE INTERESTS SHALL BE CONVEYED
PURSUANT HERETO WITHOUT ANY WARRANTY OR REPRESENTATION, WHETHER EXPRESS,
IMPLIED, STATUTORY, OR OTHERWISE RELATING TO THE CONDITION, QUANTITY, QUALITY,
FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO THE MODELS OR SAMPLES OF
MATERIALS, OR MERCHANTABILITY OF ANY EQUIPMENT OR ITS FITNESS FOR ANY PURPOSE,
AND WITHOUT ANY OTHER EXPRESS, IMPLIED, STATUTORY, OR OTHER WARRANTY OR
REPRESENTATION WHATSOEVER. BUYER SHALL HAVE INSPECTED, OR WAIVED (AND UPON
CLOSING SHALL BE DEEMED TO HAVE WAIVED) ITS RIGHT TO INSPECT THE INTERESTS FOR
ALL PURPOSES AND SATISFIED ITSELF AS TO THEIR PHYSICAL AND ENVIRONMENTAL
CONDITION, BOTH SURFACE AND SUBSURFACE, INCLUDING, BUT NOT LIMITED TO,
CONDITIONS SPECIFICALLY RELATED TO THE PRESENCE, RELEASE, OR DISPOSAL OF
HAZARDOUS SUBSTANCES, SOLID WASTES, ASBESTOS OR OTHER MANMADE FIBERS OR
NATURALLY OCCURRING RADIOACTIVE MATERIALS ("NORM") IN, ON, OR UNDER THE
INTERESTS. BUYER IS RELYING SOLELY UPON ITS OWN INSPECTION OF THE INTERESTS, AND
BUYER SHALL, EXCEPT AS PROVIDED OTHERWISE HEREIN, ACCEPT ALL OF THE SAME "AS IS,

                                      -12-
<PAGE>

WHERE IS". WITHOUT LIMITATION OF THE FOREGOING, SELLER MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, AS TO THE ACCURACY OR
COMPLETENESS OF ANY DATA, REPORTS, RECORDS, PROJECTIONS, INFORMATION, OR
MATERIALS NOW HERETOFORE, OR HEREAFTER FURNISHED OR MADE AVAILABLE TO BUYER IN
CONNECTION WITH THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, PRICING
ASSUMPTIONS OR QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE
TO THE INTERESTS OR THE ABILITY OR POTENTIAL OF THE INTERESTS TO PRODUCE
HYDROCARBONS OR THE ENVIRONMENTAL CONDITION OF THE INTERESTS OR ANY OTHER
MATERIALS FURNISHED OR MADE AVAILABLE TO BUYER BY SELLER, OR BY SELLER'S AGENTS
OR REPRESENTATIVES. ANY AND ALL SUCH DATA, RECORDS, REPORTS, PROJECTIONS,
INFORMATION, AND OTHER MATERIALS (WRITTEN OR ORAL) FURNISHED BY SELLER OR
OTHERWISE MADE AVAILABLE OR DISCLOSED TO BUYER ARE PROVIDED TO BUYER AS A
CONVENIENCE AND SHALL NOT CREATE OR GIVE RISE TO ANY LIABILITY OF OR AGAINST
SELLER, AND ANY RELIANCE ON OR USE OF THE SAME SHALL BE AT BUYER'S SOLE RISK TO
THE MAXIMUM EXTENT PERMITTED BY LAW.

                                   ARTICLE VI

                              CONDITIONS TO CLOSING

         6.01  Conditions to Obligations of Seller. The obligations of Seller to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction, or waiver by Seller, of the condition that all representations and
warranties of Buyer contained in this Agreement shall be true in all material
respects at and as of the Closing as if such representations and warranties were
made at and as of the Closing, and Buyer shall have performed and satisfied all
material covenants and agreements required by this Agreement to be performed and
satisfied by Buyer at or prior to the Closing.

         6.02  Conditions to Obligations of Buyer. The obligations of Buyer to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction, or waiver by Buyer, of the condition that all representations and
warranties of Seller contained in this Agreement shall be true in all material
respects at and as of the Closing as if such representations and warranties were
made at and as of the Closing, and Seller shall have performed and satisfied all
material covenants and agreements required by this Agreement to be performed and
satisfied by Seller at or prior to the Closing.

                                   ARTICLE VII

                                     CLOSING

         7.01  Date of Closing. Subject to the conditions stated in this
Agreement, the consummation of the transactions contemplated by this Agreement
(the "Closing") shall be held on April 30, 2001, at 10:00 a.m., or such earlier
date as the parties shall agree in writing. Said date shall be referred to as
the "Closing Date".

         7.02  Place of Closing. The Closing shall be held at the offices of
Seller, or at such other place as Buyer and Seller may agree upon in writing.

                                      -13-
<PAGE>

         7.03  Closing Obligations. At the Closing the following events shall
occur, each being a condition precedent to the others and each being deemed to
have occurred simultaneously with the others:

               (a) Seller shall execute, acknowledge and deliver (in sufficient
counterparts to facilitate recording) the Assignment, Conveyance and Bill of
Sale ("Assignment") conveying the Interests to Buyer in substantially the form
attached as Exhibit "C" hereto. As appropriate, Seller shall also execute,
acknowledge and deliver separate assignments of the Interests on officially
approved forms, in sufficient counterparts, to satisfy applicable statutory and
regulatory requirements.

               (b) Seller and Buyer shall execute a settlement statement (the
"Preliminary Settlement Statement") prepared by Seller that shall set forth the
Preliminary Amount (as hereinafter defined) and each adjustment and the
calculation of such adjustments used to determine such amount. The term
"Preliminary Amount" shall mean the Purchase Price adjusted as provided in
Section 2.03 using for such adjustments the best information then available.

               (c) Buyer shall deliver to Seller a cashier's check or wire
transfer for the Preliminary Amount.

               (d) Seller shall deliver to Buyer exclusive possession of the
Interests.

               (e) Seller and Buyer shall execute, acknowledge and deliver
transfer orders or letters in lieu thereof directing all purchasers of
production to make payment of proceeds attributable to production from the
Interests after the Effective Time to Buyer.

               (f) Seller shall deliver to Buyer copies of all original land,
legal, accounting, engineering, geological and geophysical records relating to
the Interests, including without limitation, all information and material
referred to in Section 4.01(a).

               (g) Seller and Buyer shall execute a Transition Agreement to
provide for interim operations by Seller as set forth in Article X.

               (h) Seller shall provide to Buyer a listing showing all proceeds
from production attributable to the Interests which are currently held in
suspense for any reason and Buyer shall receive a credit in the amount of such
suspended funds in connection with the final closing statement as provided
hereunder. Buyer shall be responsible for proper distribution of all such
suspended proceeds to the parties lawfully entitled to them, and indemnify and
hold Seller harmless against any claim, action or liability (including court
costs and attorney's fees) associated with claims against such suspended funds
based on Buyer's actions or inactions in connection with such funds as of and
after the Closing Date. Seller shall indemnify and hold Buyer harmless against
any claim, action or liability (including court costs and attorneys' fees)
associated with any claims against such suspended funds based on Seller actions
or inactions in connection with such funds prior to the Closing Date.

                                      -14-
<PAGE>

                                  ARTICLE VIII

                            OBLIGATIONS AFTER CLOSING

         8.01  Post-Closing Adjustments. After the Closing, Seller shall make
available to Buyer all accounting records necessary for Seller to prepare, in
accordance with this Agreement, a statement (the "Final Settlement Statement")
setting forth each adjustment or payment which was not finally determined as of
the Closing and showing the calculation of such adjustments. As soon as
practicable after receipt of the Final Settlement Statement, Buyer shall deliver
to Seller a written report containing any changes which Buyer proposes be made
to the Final Settlement Statement. The parties shall undertake to agree with
respect to the amounts due pursuant to such post-closing adjustment no later
than ninety (90) days after the Closing. If such post-closing adjustment has not
been agreed to within ninety (90) days after the Closing, either party may seek
to enforce any rights it claims hereunder. The date upon which such agreement is
reached or upon which the Adjusted Purchase Price is established, shall be
referred to as the "Final Settlement Date." In the event that (i) the Adjusted
Purchase Price is more than the Preliminary Amount, Buyer shall deliver to
Seller or to Seller's account the amount of such difference in immediately
available funds, or (ii) the Adjusted Purchase Price is less than the
Preliminary Amount, Seller shall deliver to Buyer or to Buyer's account the
amount of such difference in immediately available funds. Payment by Buyer or
Seller shall be made within five (5) days of the Final Settlement Date. To the
extent not accounted for in the computation of the Adjusted Purchase Price, all
uncollected accounts receivable attributable to the Interests on or after the
Effective Time shall be assigned to Buyer.

         8.02  Sales Taxes and Recording Fees. Buyer and Seller shall pay all
sales taxes occasioned by the sale of the Interests in equal shares. Buyer shall
pay all documentary, filing and recording fees required in connection with the
filing and recording of all assignments.

         8.03  Indemnification. After the Closing, Buyer and Seller shall
indemnify each other as follows:

               (a) Including any "Environmental Claim" as defined in Section
8.03(c) hereinbelow, Buyer shall defend, indemnify and save and hold harmless
Seller against any and all costs, expenses, claims, demands and causes of action
of whatsoever kind or character, including court costs and attorneys' fees,
arising out of any operations conducted, commitment made or any action taken or
omitted with respect to the Interests, which accrue or relate to times on and
after the Effective Time.

               (b) Excluding any "Environmental Claim" as defined in Section
8.03(c) hereinbelow, but including the "Pending Claims" as defined in Section
3.01 (f) hereinabove, Seller shall defend, indemnify and save and hold harmless
Buyer against any and all costs, expenses, claims, demands and causes of action
of whatsoever kind or character, including court costs and attorneys' fees,
arising out of any operations conducted, commitment made or any action taken or
omitted with respect to the Interests, which accrue or relate to times prior to
the Effective Time.

               (c) Notwithstanding any terms contained in Sections 8.03(a) and
(b) above, but in furtherance of same, Buyer expressly agrees to fully and
promptly pay, perform and discharge, defend, indemnify and hold Seller harmless
from and against any and all costs, expenses, claims, demands and causes of

                                      -15-
<PAGE>

action of whatsoever kind or character, including court costs and attorneys'
fees, resulting from any "Environmental Claim" as hereinafter defined arising
out of any operations conducted, commitment made or any action taken or omitted
at any time, whether accruing or relating to times prior to or after the
Effective Time, with respect to the Interests. For purposes of this paragraph
"Environmental Claim" shall mean any claim, demand or cause of action asserted
by any governmental agency or any person, corporation or other entity for
personal injury (including sickness, disease or death), property damage or
damage to the environment resulting from the discharge or release of any
chemical, material or emission into one or more of the environmental media at or
in the vicinity of the Interests.

               (d) THE INDEMNIFICATION, RELEASE AND ASSUMPTION PROVISIONS
PROVIDED FOR IN THIS AGREEMENT SHALL BE APPLICABLE WHETHER OR NOT THE LOSSES,
COSTS, EXPENSES AND DAMAGES IN QUESTION AROSE SOLELY OR IN PART FROM THE ACTIVE,
PASSIVE OR CONCURRENT NEGLIGENCE, OR OTHER FAULT OF ANY INDEMNIFIED PARTY. BUYER
AND SELLER ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE
RULE AND IS CONSPICUOUS.

         8.04  Further Assurances. Seller and Buyer shall execute, acknowledge
and deliver or cause to be executed, acknowledged and delivered such instruments
and take such other action as may be necessary or advisable to carry out their
obligations under this Agreement and under any exhibit, document, certificate or
other instrument delivered pursuant hereto.

         8.05  Survival. The representations, warranties, covenants, agreements
and indemnities contained in this Agreement shall terminate at the Closing
except for the provisions of Section 5.09, Section 5.10 and all of Article VIII.

         8.06  Limitation on Seller's Liability. After the Closing, any
assertion by Buyer that Seller is liable under this Agreement (a) for the
inaccuracy of any representation or warranty, (b) for breach of any covenant,
(c) for indemnity under the terms of this Agreement, or (d) otherwise in
connection with the transactions contemplated in this Agreement, must be made by
Buyer in writing and must be given to Seller on or prior to the last business
day preceding the first anniversary of the Closing Date. The notice shall state
the facts known to Buyer that give rise to such notice in sufficient detail to
allow Seller to evaluate the assertion of Buyer.

                                   ARTICLE IX

                            TERMINATION OF AGREEMENT

         9.01  Termination. This Agreement and the transactions contemplated
hereby may be terminated in the following instances:

               (a) By Buyer if any condition set forth in Section 6.02 above
shall not be satisfied on or before the Closing, or Buyer otherwise elects to
terminate this Agreement pursuant to Sections 5.05(e) or 5.07 (g) of this
Agreement.

                                      -16-
<PAGE>

               (b) By Seller if any condition set forth in Section 6.01 above
shall not be satisfied on or before the Closing or Seller otherwise elects to
terminate this Agreement pursuant to Sections 5.05 (e) or 5.07 (g) of this
Agreement.

               (c) By the mutual written agreement of Buyer and Seller.

         9.02  Return or Forfeiture of Deposit. If this Agreement is terminated
by Buyer in accordance with Section 6.02 above and Buyer is not in a material
breach of any terms of this Agreement, Seller shall immediately refund to Buyer
the Deposit whereupon this Agreement shall terminate and be of no further force
and effect. Alternatively, if this Agreement is terminated by Seller in
accordance with Section 6.01 above and Seller is not in a material breach of any
terms of this Agreement, Buyer shall forfeit the Deposit to Seller as liquidated
damages, and not as a penalty, whereupon this Agreement shall terminate except
for Section 9.03 below. If this Agreement is terminated by either Buyer or
Seller in accordance with 5.05 (e) or 5.07(g) of this Agreement, then Seller
shall immediately refund to Buyer the Deposit whereupon this Agreement shall
terminate and be of no further force and effect except for Section 9.03 below.

         9.03  Return of Information. If this Agreement is terminated, Buyer
shall return to Seller all information and material delivered to Buyer by Seller
pursuant to the terms of this Agreement.

         9.04  Liabilities upon Termination. If this Agreement is terminated for
any reason, Seller's or Buyer's legal or equitable remedies shall be limited to
liquidated damages as provided in 9.02 above

                                    ARTICLE X

                               INTERIM OPERATIONS

         If Seller is the operator of the Interests, Seller shall continue to
operate the Interests during the period between the Effective Date and 7:00 a.m.
on the first day of the month following the Closing Date (the "Interim Period"),
but has no obligation to operate the Interests after the Interim Period. Seller
shall operate the Interests during the Interim Period in a prudent manner
consistent with generally accepted industry practices and standards, applicable
laws and regulations, and all applicable lease and other agreement terms. Seller
is entitled to retain any overhead payments received and attributable to the
operations during the Interim Period. Seller makes no representation or warranty
that Buyer will become operator of any portion of the Interests, as that matter
is controlled by the applicable operating agreements and governmental regulatory
requirements.

                                   ARTICLE XI

                                  MISCELLANEOUS

         11.01 Like Kind Exchange. The parties shall each have the option to
complete all or a portion of the sale and purchase of the Interests as part of a
tax-deferred exchange under Section 1031 of the Internal Revenue Code of 1986,
as amended. The parties agree to cooperate in documenting and completing such
exchange, including, without limitation, consenting to an assignment of all or a
portion of a party's rights, title, interest, duties, or obligations under this
Agreement to a third party accommodator or Qualified Intermediary (as such term
is defined in Section 1031). Notwithstanding the foregoing, Buyer shall take

                                      -17-
<PAGE>

title to the Interests directly from Seller pursuant to the Assignment and shall
pay Seller the Purchase Price therefor, and each party shall remain liable for
its obligations to the other party hereunder.

         11.02 Expenses. Except as otherwise specifically provided in this
Agreement, all fees, costs and expenses incurred by Buyer or Seller in
negotiating this Agreement or in consummating the transactions contemplated by
this Agreement shall be paid by the party incurring the same, including without
limitation, legal and accounting fees, costs and expenses.

         11.03 Notices. All notices and communications required or permitted
under this Agreement shall be in writing and shall be effective when receive by
mail, telecopy or hand delivery as follows:

If to Seller:  Mr. H. Kent Brock
               Strand Energy, L.C.
               910 Travis, Suite 1820
               Houston, Texas 77002
               Telephone: (713) 658-8096
               Telecopy:  (713) 951-0343

If to Buyer:   Mr. Timothy M. Murin
               Castle Exploration Company, Inc.
               61 McMurray Road, Suite 204
               Pittsburgh, Pennsylvania 15241-1633
               Telephone: (412) 831-8600
               Telecopy:  (412) 831-8602
and
               Mr. Richard E. Staedtler
               Castle Exploration Company, Inc.
               One Radnor Corporate Center- Suite 250
               100 Matsonford Road
               Radnor, Pennsylvania 79087
               Telephone: (610) 995-9400
               Telecopy:  (610) 995-0409

Either party may, by written notice so delivered to the other, change the
address to which notice shall thereafter be made.

         11.04 Amendment. This Agreement may not be altered or amended, nor any
rights hereunder be waived, except by an instrument in writing executed by the
party or parties to be charged with such amendment or waiver. No waiver of any
term, provision or condition of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any
other term, provision or condition of this Agreement.

                                      -18-
<PAGE>

         11.05 Assignment. Neither Seller nor Buyer may assign any portion of
its rights or delegate any portion of its duties or obligations under this
Agreement without the prior written consent of the other party.

         11.06 Announcements. Seller and Buyer shall consult with each other
with regard to all press releases and other announcements concerning this
Agreement or the transaction contemplated hereby and, except as may be required
by applicable laws or regulations of any governmental agency, neither Buyer nor
Seller shall issue any such press release or make any other announcement without
the prior written consent of the other party.

         11.07 Generality of Provisions. The specificity of any representation,
warranty, covenant, agreement or indemnity included or provided in this
Agreement, or in any exhibit, document, certificate or other instrument
delivered pursuant hereto, shall in no way limit the generality of any other
representation, warranty, covenant, agreement or indemnity included or provided
in this Agreement, or in any exhibit, document, certificate or other instrument
delivered pursuant hereto.

         11.08 Headings. The headings of the articles and sections of this
Agreement are for guidance and convenience of reference only and shall not limit
or otherwise affect any of the terms or provisions of this Agreement.

         11.09 Counterparts. This Agreement may be executed by Buyer and Seller
in any number of counterparts and shall be binding upon each party executing
same whether or not executed by all parties. Each of the counterparts shall be
deemed an original instrument, but all of which together shall constitute but
one and the same instrument.

         11.10 References. References made in this Agreement, including use of a
pronoun, shall be deemed to include where applicable, masculine, feminine,
singular or plural, individuals, partnerships or corporations. As used in this
Agreement, "person" shall mean any natural person, corporation, partnership,
trust, estate or other entity. As used in this Agreement, "affiliate" of a
person shall mean any partnership, joint venture, corporation or other entity in
which such person has an interest or which controls, is controlled by or is
under common control of such person.

         11.11 Governing Law. This Agreement, and the transactions contemplated
hereby, shall be construed in accordance with, and governed by, the laws of the
State of Texas and venue shall be in Harris County, Texas.

         11.12 Binding Arbitration. On the request of any party hereto, whether
made before or after the institution of any legal proceeding, any action,
dispute, claim or controversy of any kind, now existing or hereafter arising,
between any of the parties hereto in any way arising out of, pertaining to or in
connection with this Agreement (a "Dispute") shall be resolved by binding
arbitration in accordance with the terms hereof. Any party may, by summary
proceedings, bring an action in court to compel arbitration of any Dispute. Any
arbitration shall be administered by the American Arbitration Association (the
"AAA") in accordance with the terms of this section, the Commercial Arbitration
Rules of the AAA and, to the maximum extent applicable, the Federal Arbitration
Act. Judgment on any award rendered by the arbitrators may be entered in any
court having jurisdiction. Any arbitration shall be conducted before three (3)
arbitrators with each side selecting one (1) arbitrator and the two (2)
arbitrators selecting the third arbitrator. The arbitrators shall be
knowledgeable in the subject matter of the Dispute. If the parties cannot agree

                                      -19-
<PAGE>

on any arbitrator within thirty (30) days after the request for an arbitration,
then any party may request the AAA to select an arbitrator. The arbitrators may
engage engineers, accountants or other consultants that the arbitrators deem
necessary to render a conclusion in the arbitration proceeding. To the maximum
extent practicable, an arbitration proceeding hereunder shall be concluded
within one hundred eighty (180) days of the filing of the Dispute with the AAA.
Arbitration proceedings shall be conducted in Houston, Texas. Arbitrators shall
be empowered to impose sanctions and to take such other actions as the
arbitrators deem necessary to the same extent a judge could impose sanctions or
take such other actions pursuant to the Federal Rules of Civil Procedure and
applicable law. At the conclusion of any arbitration proceeding, the arbitrators
shall make specific written findings of fact and conclusions of law. The
arbitrators shall have the power to award recovery of all costs and fees to the
prevailing party. Each party agrees to keep all Disputes and arbitration
proceedings strictly confidential except for disclosure of information required
by applicable law. All fees of the arbitrator and any engineer, accountant or
other consultant engaged by the arbitrators shall be paid by Buyer and Seller
equally unless otherwise awarded by the arbitrators.

         11.13 Entire Agreement. This Agreement (including the exhibits hereto)
constitutes the entire understanding between the parties with respect to the
subject matter hereof and supersedes all negotiations, prior discussions and
prior agreements and understandings relating to such subject matter. No material
representation, warranty, covenant, agreement, promise, inducement or statement,
whether oral or written, has been made by Seller or Buyer and relied upon by the
other that is not set forth in this Agreement or in the instruments referred to
herein, and neither Seller nor Buyer shall be bound by or liable for any alleged
representation, warranty, covenant, agreement, promise, inducement or statement
not so set forth.

         11.14 Severability. If any term or provision of this Agreement shall be
determined to be illegal or unenforceable, all other terms and provisions of
this Agreement shall nevertheless remain effective and shall be enforced to the
fullest extent permitted by applicable law.

         11.15 Parties in Interest. This Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective
successors and assigns. Nothing contained in this Agreement, express or implied,
is intended to confer upon any other person or entity any benefits, rights or
remedies.

         EXECUTED as of the date first above mentioned.

SELLER:
Strand Energy, L.C.

By: /s/ H. Kent Brock
    ----------------------------
Name:  H. Kent Brock
Title: President

                                      -20-
<PAGE>

BUYER:
Castle Exploration Company, Inc.

By:  /s/ Richard E. Staedtler
    ----------------------------------------

Name:  Richard E. Staedtler
      --------------------------------------

Title: Chief Financial Officer
       -------------------------------------

                                      -21-<PAGE>

                                                                  EXHIBIT 10.1

                           SOFTWARE LICENSE AGREEMENT
                          (Insur-Web and Insur-Enroll)

         This Software License Agreement (this "Agreement") is made and entered
into by and between HealthAxis.com, Inc., a Pennsylvania corporation
("HealthAxis"), and UICI, a Delaware corporation ("UICI").

         WHEREAS, UICI and HealthAxis, as successor by merger to Insurdata
Incorporated, are parties to that certain Information Technology Services
Agreement dated January 3, 2000 (the "UICI Master Services Agreement"), pursuant
to which HealthAxis provides UICI and its affiliates various information
technology services as more particularly provided therein; and

         WHEREAS, HealthAxis provides a variety of software and web-enabling
technology solutions for the distribution and administration of health insurance
products which are not covered by, and expressly excluded from, the UICI Master
Services Agreement; and

         WHEREAS, UICI now desires to license certain of such software and
web-enabling technology from HealthAxis for use by UICI and its affiliates, all
as more particularly provided hereinbelow.

         NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of all of which are hereby acknowledged and confessed,
HealthAxis and UICI do hereby agree as follows:

                                    ARTICLE I
                                LICENSED SOFTWARE

As used in this Agreement, the term "Licensed Software" shall mean the
HealthAxis Insur-Web and Insur-Enroll proprietary software and technology
solutions as more particularly described in Exhibit "A" attached hereto. The
Licensed Software includes any and all modifications, enhancements and future
revisions of such software, regardless of the form in which they are made
available, which are provided by HealthAxis to UICI pursuant to this Agreement.

                                   ARTICLE II
                        LICENSE AND AGREEMENTS REGARDING
                          USE OF THE LICENSED SOFTWARE

HealthAxis and UICI hereby agree to the following terms and conditions with
regard to the licensing and use of the Licensed Software by UICI:

2.1 Grant of License. In consideration of the payment by UICI of the License Fee
as provided in Section 4.1 below, HealthAxis does hereby grant to UICI and its
Authorized Affiliates (as hereinafter defined) an enterprise-wide, perpetual
<PAGE>

license to use, modify, enhance, and make derivative works of the Licensed
Software, in all cases solely and exclusively for use in and in connection with
UICI and its Authorized Affiliates' direct distribution and administration of
their own health insurance products and related services on systems owned and
operated by UICI and/or such Authorized Affiliates. For purposes of this
Agreement, the term "Authorized Affiliate" shall mean any entity in which UICI
is the legal or beneficial owner of a majority of the voting ownership interests
on a fully diluted basis. The license granted in this Section 2.1 includes both
the source and object code versions of the Licensed Software, and shall be
non-exclusive. Subject to payment by UICI of the monthly Maintenance Fees as
provided below, the license granted herein includes all updates and future
releases of the Licensed Software to be provided to UICI and the Authorized
Affiliates promptly upon release. UICI and its Authorized Affiliates shall have
no right to sublicense or otherwise distribute the Licensed Software.

2.2 Delivery and Source Code Release. Simultaneously with receipt of payment of
the License Fee, HealthAxis will deliver to UICI the current version of the
Licensed Software, in source and object code version, which shall be available
for immediate use by UICI and its Authorized Affiliates. UICI's use of the
source code of the Licensed Software shall be limited to the right to modify and
make derivative works thereof for its own use, and in all cases solely and
exclusively for use by UICI and the Authorized Affiliates in and in connection
with UICI and the Authorized Affiliates' direct distribution and administration
of their own health insurance products on systems owned and operated by UICI
and/or the Authorized Affiliates in accordance with the terms, conditions and
provisions of the license granted in this Agreement. UICI and the Authorized
Affiliates shall not have the right to otherwise use the source code or the
Licensed Software, or to sublicense, deliver, distribute or disclose the
Licensed Software to any third party whatsoever except with respect to third
parties performing services on behalf of UICI who have agreed in writing, using
a form approved by HealthAxis, to maintain the confidentiality of the source
code and to otherwise use same solely in accordance with the terms, conditions
and provisions of this Agreement for and on behalf of UICI and the Authorized
Affiliates, and not otherwise.

2.3 Non-disclosure of Source Code. UICI and each Authorized Affiliate shall take
appropriate action by instruction, agreement, or otherwise, with any employees
who are permitted access to the source code of the Licensed Software to inform
such persons of the confidential and proprietary nature thereof, and to have
appropriate agreements with such employees to satisfy the obligations under this
Agreement with respect to use, copying, modification, protection, and security
of the source code. UICI agrees to immediately report to HealthAxis any and all
breaches of the confidential nature of the source code committed by it or its
Authorized Affiliates or any of their employees, agents, or other persons
obtaining access to the Licensed Software through them, and agrees to cooperate
with HealthAxis in the event any dispute or litigation arises concerning the
matters covered in this Section 2.3. UICI HEREBY AGREES THAT THE LIMITATIONS OF
LIABILITY CONTAINED IN SECTION 8.1 HEREIN SHALL NOT APPLY WITH RESPECT TO ANY
CLAIMS, LOSSES OR DAMAGES SUFFERED OR INCURRED BY HEALTHAXIS AS A RESULT OF
UICI'S OR ANY AUTHORIZED AFFILIATE'S, OR ANY OF THEIR EMPLOYEE'S WRONGFUL USE OR
DISCLOSURE OF THE SOURCE CODE OF THE LICENSED SOFTWARE, OR INTENTIONAL
DISCLOSURE OF, OR FAILURE TO PROTECT, THE SOURCE CODE OF THE LICENSED SOFTWARE
AS REQUIRED HEREIN.
<PAGE>

                                   ARTICLE III
                MAINTENANCE AND SUPPORT OF THE LICENSED SOFTWARE

In consideration of, and subject to, the payment by UICI of the monthly
Maintenance Fees as provided in Section 4.2 below, HealthAxis will provide the
following maintenance and support to UICI and the Authorized Affiliates with
regard to the Licensed Software in a timely and professional manner. The
provisions of this Article III apply to the Licensed Software only, and are not
applicable with respect to other customized software or services provided by
HealthAxis, or any third party software, the maintenance and support of all of
which shall be governed by the provisions of Article V of this Agreement to the
extent provided or supported by HealthAxis:

3.1 Product Support. Product support will be provided through the HealthAxis
Customer Care Unit (CCU). UICI and its Authorized Affiliates will provide their
agents, employees and other end-users with 1st level technical and product usage
support for the HealthAxis technology components. The CCU will be available to
provide 2nd level support to an identified primary and secondary contact within
UICI and each Authorized Affiliate. 2nd Level Support includes the logging of
change requests, the management of fault reports, and aid in resolution of usage
issues. HealthAxis will resolve reported problems in a timely fashion and in
accordance with the performance standards set forth in the HealthAxis
Operational Procedures Guide as published from time to time.

3.2 Upgrades and New Versions. In consideration of, and subject to, the payment
by UICI of the Maintenance Fees, HealthAxis will provide to UICI and the
Authorized Affiliates, without further charge, the standard enhancements,
upgrades and new release versions of the Licensed Software ("New Version") that
may be developed by HealthAxis together with standard documentation. To the
extent retrofitting is required as a result of UICI or Authorized Affiliate
customizations of standard product, such retrofitting of any New Version is not
included and will be provided only in accordance with Article V.

3.3 Product Development. UICI and HealthAxis will meet not less often than twice
per year at such times and places as the parties mutually agree to discuss
HealthAxis' development plans and any maintenance and support problems.
HealthAxis will make reasonable efforts to accommodate UICI's requests for
product modifications or enhancements. If UICI requests modifications or
enhancements that are not within HealthAxis' standard upgrade plans, HealthAxis
will so inform UICI and HealthAxis will not be obligated to make such
modifications or enhancements unless UICI and HealthAxis agree to a mutually
acceptable financial arrangement and any associated agreed restrictions or
provisions regarding the further licensing and/or use of such modifications or
enhancements for any third party. HealthAxis further agrees that during the term
of this Agreement it will update, modify and maintain the Licensed Software so
that it remains compatible with the major hardware platform on which the current
version of the Licensed Software operates.
<PAGE>

3.4 Future Deliverables. HealthAxis will deliver New Versions to UICI no later
than the time HealthAxis releases such products in final release form to any
other person or entity, together with any related documentation, for testing and
acceptance in accordance with the Operational Procedures Guide and the
HealthAxis standard change control procedures.

                                   ARTICLE IV
                          LICENSE AND MAINTENANCE FEES

4.1 License Fee. In consideration of grant of the license by HealthAxis as
provided in Article II hereof, UICI shall pay to HealthAxis the license fee (the
"License Fee") as provided in Part I of Exhibit "B" attached hereto. The License
Fee is a one-time charge for the perpetual license granted herein, and is due
and payable in full by wire transfer simultaneously with the execution of this
Agreement; provided however, that if at any time during the first twenty-four
(24) months following execution hereof, UICI elects for any reason, or no
reason, to cease all use of the Licensed Software and to terminate this
Agreement, then UICI shall be entitled to a refund of a prorated portion of the
License Fee in an amount determined by multiplying the total License Fee paid by
a fraction, the numerator of which shall be the number of whole months remaining
in such twenty-four (24) month period, and the denominator of which shall be
twenty-four (24).

4.2 Maintenance Fees. In consideration of the maintenance and support to be
provided in accordance with Article III hereof, UICI shall pay to HealthAxis the
monthly maintenance fees (the "Maintenance Fees") as provided in Part II of
Exhibit "B" attached hereto. The Maintenance Fees shall commence effective with
the first live use by UICI or any Authorized Affiliate of any module or portion
of the Licensed Software and shall be payable each month thereafter for so long
as UICI elects to have maintenance and support provided by HealthAxis. UICI may
elect to discontinue the maintenance and support it receives from HealthAxis
under this Agreement by providing thirty (30) days' written notice to
HealthAxis. If UICI elects to discontinue maintenance and support at any time,
HealthAxis shall no longer be obligated to provide same under Article III, and
HealthAxis shall not be obligated to reinstate the maintenance and support
services if UICI subsequently desires to reinstate same following the initial
discontinuance by UICI. HealthAxis will invoice UICI on a monthly basis for the
Maintenance Fees. Payment on all invoices shall be due net 30 days. The
Maintenance Fees are earned each month, and are non-refundable under any
circumstances.

                                    ARTICLE V
                              PROFESSIONAL SERVICES

It is anticipated that UICI and various Authorized Affiliates will engage
HealthAxis from time to time to provide consulting, design, development,
integration, operations and other information technology services in connection
with their use of the Licensed Software, including services which are requested
by UICI and/or any Authorized Affiliate from time to time in order to (i)
facilitate the integration of the Licensed Software with each of their
respective operations, (ii) otherwise assist in any new software, equipment, or
business partner integration related thereto, (iii) assist in making
enhancements or modifications to the Licensed Software as may be requested by
UICI or any Authorized Affiliate, (iv) assist in the acquisition and
<PAGE>

installation of any third-party hardware, software and/or equipment to be
utilized in connection with the Licensed Software, and (v) undertake any
additional assignments which UICI or any Authorized Affiliate may request
regarding their particular use of the Licensed Software (collectively, the
"Professional Services"). In such instances, all such Professional Services will
be provided pursuant to the terms, conditions and provisions of the UICI Master
Services Agreement, and are expressly excluded from the subject matter of this
Agreement.

                                   ARTICLE VI
                          REPRESENTATIONS, WARRANTIES
                              AND OTHER AGREEMENTS

6.1 Warranties and Disclaimers.

   (a)   HealthAxis hereby represents and warrants that HealthAxis has and will
         have title to the Licensed Software, and, subject to the limitations as
         set forth in Section 8.1 hereof, agrees to indemnify and hold UICI and
         the Authorized Affiliates harmless from any and all damages, liability,
         loss, costs or expenses, including, but not limited to, reasonable
         attorneys' fees, arising out of or resulting from any actual patent,
         copyright, or trade secret claim or action against UICI and/or the
         Authorized Affiliates regarding the Licensed Software.

   (b)   Subject to payment of the Maintenance Fees by UICI as they become due
         and payable, HealthAxis warrants that all of the base Licensed Software
         will be free of bugs and defects and perform in accordance with the
         documentation pertaining thereto, and that HealthAxis will promptly
         correct any such bugs or defects in accordance with the provisions of
         Article III above at no additional cost to UICI.

6.2 Title; Copyright; and Subsequent Use and Licensing by HealthAxis. All rights
in and title to the Licensed Software, and all modifications, enhancements,
upgrades and derivative works pertaining thereto, including all New Versions,
remain the property of HealthAxis, including all copyrights and other
intellectual property rights. UICI hereby acknowledges and agrees that the
license granted herein is non-exclusive, and that HealthAxis may license or
otherwise grant or assign rights in the Licensed Software to third parties
and/or incorporate and/or use derivatives of any such software in other products
or other software to be developed by HealthAxis for its own products, or in
products to be developed by HealthAxis for third parties for use in products or
service offerings which may compete with those of UICI and/or the Authorized
Affiliates, or in products which are distinctly different.

6.3 Excluded Items. UICI understands, acknowledges and agrees that the license
granted herein pertains to software developed by HealthAxis only, and does not
include a license to any third party software or intellectual property which may
be necessary or desirable for use in establishing the platform and environment
in which the Licensed Software is designed to operate. UICI and/or the
Authorized Affiliates shall be solely responsible for obtaining and maintaining
such third party software and intellectual property rights, at their sole cost
and expense. UICI and the Authorized Affiliates shall have no rights whatsoever
<PAGE>

with respect to any other HealthAxis software or products not expressly licensed
herein. In the event UICI or any Authorized Affiliate subsequently desires to
license any other HealthAxis software, then the parties will negotiate in good
faith to determine the terms upon which HealthAxis will agree to license any of
same to UICI or the Authorized Affiliate.

6.4 Waiver of Most Favored Nations Pricing. UICI acknowledges that the License
Fee as provided for herein represents the current HealthAxis standard rate for
same, and that other third party customers of HealthAxis may now or hereafter
receive more favorable pricing terms from HealthAxis for the license fees
payable by such parties for the Licensed Software. In connection therewith, UICI
hereby waives the "Most Favored Nations Pricing" provision contained in Section
11.7 of the UICI Master Services Agreement as it may apply to the License Fee
provided for in this Agreement. Except for the express waiver contained in the
preceding sentence with respect to the Licensed Software, the Most Favored
Nations Pricing provision shall continue in full force and effect, including
with respect to the Maintenance Fees payable in accordance with this Agreement.

                                   ARTICLE VII
                              TERM AND TERMINATION

7.1 Term. This Agreement shall be effective upon the date of full execution
hereof and shall continue for the term of the license granted herein as provided
in Section 2.1, unless terminated sooner in accordance with this Article VII.

7.2 Termination. This Agreement may be terminated as follows:

     (a) Upon mutual written agreement between HealthAxis and UICI;

     (b) During the initial twenty-four (24) month period following the
         execution hereof, UICI may terminate this Agreement for any reason or
         no reason, in its sole and absolute discretion, in which event UICI
         will be entitled to a refund of a prorated portion of the License Fee
         as provided in Section 4.1 hereof. Thereafter, this Agreement may be
         terminated by UICI at any time following a material breach by
         HealthAxis of any provision of this Agreement, and such breach
         continues for sixty (60) days following written notice from UICI to
         HealthAxis of UICI's intent to terminate for such cause; or

     (c) By HealthAxis (i) at any time if UICI fails to pay any amounts due to
         HealthAxis under this Agreement, on or before the due date therefor,
         and such failure continues for thirty (30) days following written
         notice from HealthAxis to UICI of HealthAxis' intent to terminate for
         non-payment, or (ii) at any time following a material breach by UICI of
         any other provision of this Agreement, and such breach continues for
         sixty (60) days following written notice from HealthAxis to UICI of
         HealthAxis' intent to terminate for such cause.
<PAGE>

7.3 Termination of License. In the event of termination of this Agreement, UICI
shall have no further right to continue use of the Licensed Software and shall
immediately return all copies of same and documentation pertaining thereto to
HealthAxis.

                                  ARTICLE VIII
                                  MISCELLANEOUS

8.1 Limitations of Liability. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN
ARTICLE VI ABOVE, HEALTHAXIS GRANTS NO WARRANTIES, WHETHER EXPRESS OR IMPLIED,
WITH REGARD TO ANY LICENSED SOFTWARE OR SERVICES, INCLUDING ANY IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE STATED
EXPRESS WARRANTIES ARE IN LIEU OF ALL LIABILITIES OR OBLIGATIONS OF HEALTHAXIS
FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE, OR
PERFORMANCE OF THE LICENSED SOFTWARE. IN NO EVENT SHALL EITHER PARTY BE LIABLE
FOR INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSS OF PROFITS, LOSS OF USE
OR DATA, OR INTERRUPTION OF BUSINESS SUFFERED OR INCURRED BY THE OTHER OR ANY
OTHER PARTY, WHETHER SUCH DAMAGES ARE LABELED IN TORT, CONTRACT, OR INDEMNITY.
EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, IN NO EVENT OR CIRCUMSTANCE
WHATSOEVER SHALL EITHER PARTY BE LIABLE OR OBLIGATED TO THE OTHER IN CONTRACT,
TORT OR OTHERWISE FOR ANY AMOUNT IN EXCESS OF THE AMOUNT OF THE ACTUAL PAYMENTS
MADE BY UICI TO HEALTHAXIS DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY
PROCEEDING THE EVENT OR OCCURANCE GIVING RISE TO SUCH LIABILITY, EACH PARTY'S
MAXIMUM LIABILITY HEREUNDER BEING HEREBY LIMITED TO SUCH AMOUNT.

8.2 Confidentiality. HealthAxis and UICI hereby warrant that all information
communicated to it by the other party, whether before or after the effective
date (the "Confidential Information") will be and, shall be received in strict
confidence, and will be used only for purposes of this Agreement, and that no
Confidential Information will be disclosed by the recipient party, its agents,
contractors or employees without the prior written consent of the other party.
Each party agrees to use the same means it uses to protect its own Confidential
Information, but in any event not less than reasonable means, to prevent the
disclosure of such information to outside parties. However, neither party will
be prevented from disclosing information to its counsel or regular public
accountants, or from disclosing information which belongs to such party, or is
(i) already known by the recipient party without an obligation of
confidentiality other than pursuant to this Agreement; (ii) publicly known or
becomes publicly known through no unauthorized act of the recipient party; (iii)
rightfully received from a third party; (iv) independently developed without use
of the other party's Confidential Information; (v) disclosed without similar
restrictions to a third party by the party owning the Confidential Information;
(vi) approved by the other party for disclosure; or (vii) required to be
<PAGE>

disclosed pursuant to a requirement of a governmental agency or legal
requirement if the disclosing party provides the other party with notice of this
requirement prior to disclosure.

8.3 Dispute Resolution and Arbitration. Any issue or dispute between the parties
arising out of or related to this Agreement or its alleged breach that is not
resolved between the parties shall be referred to arbitration in accordance with
the provisions of this Section. Any such unresolved issue, dispute or claim
shall be resolved exclusively by final and binding arbitration in accordance
with the Commercial Arbitration Rules of the American Arbitration Association.
Demand for arbitration must be made within either one year after the discovery
of the claim on which the demand is based, or one year from the date of
termination of this Agreement if discovered after termination. If the claiming
party fails to demand arbitration within the applicable one year period
specified in the preceding sentence, the claim shall be deemed to be waived and
shall be barred from either arbitration or litigation. Either party may invoke
arbitration of an issue by serving on the other party a written notice of
arbitration, which shall specify with reasonable detail (1) the issue in
dispute, (2) the claims asserted, and (3) the remedy sought by the party
invoking arbitration. Each party shall appoint one arbitrator to arbitrate the
subject issue. The arbitrators shall be appointed within fifteen (15) days of
the date of the foregoing described notice. If one party fails or refuses to
appoint an arbitrator, then the first arbitrator appointed shall appoint a
second arbitrator. Within thirty (30) days of the last of those appointments,
the two arbitrators shall appoint a third arbitrator. Each party appointing an
arbitrator or for whom an arbitrator is appointed shall bear all costs and
expenses associated with that arbitrator, and the cost and expenses associated
with the third arbitrator shall be shared equally by the parties. The
arbitration hearing shall be held in the Dallas, Texas area. Within ten (10)
days after the conclusion of the arbitration proceeding, the arbitrators shall
render a written decision of the arbitration and state the reasons for the award
and decision. The arbitrators may award costs, including attorney's fees, to the
prevailing party. The decision of the arbitrators is binding on the parties, and
after the completion of the arbitration, a party to the arbitration may not
institute litigation to reverse the decision of the arbitrators. It may,
however, institute litigation in any court of competent jurisdiction to enforce
the claim or issue determined by the arbitration proceeding.

The parties agree that the only circumstance in which disputes between them
shall not be subject to the provisions of this Section 8.3 is where a party
makes a good faith determination that a breach of the terms of this Agreement by
the other party is such that the damages to such party resulting from the breach
will be so immediate, so large or severe, and so incapable of adequate redress
after the fact that a temporary restraining order or other immediate injunctive
relief is the only adequate remedy. If a party files a pleading with a court
seeking immediate injunctive relief which is challenged by the other party and
the injunctive relief sought is not awarded in substantial part, the party
filing the pleading seeking injunctive relief shall pay all of the costs and
attorney's fees of the party successfully challenging the pleading.

8.4 Successors and Assigns. This Agreement may be assigned by either party
hereto in connection with a merger, consolidation, sale of all or substantially
all of the party's assets or similar business combination. In the event of an
assignment, merger, asset sale or similar business combination transaction
between UICI and another party which is a licensee or customer of HealthAxis,
<PAGE>

HealthAxis may have substantial economic or other business interests at risk. In
such circumstances, the parties shall negotiate in good faith to attempt to
reach agreement on terms of a restructured arrangement that fairly protects the
business interests of HealthAxis and UICI (or the other successor entity
resulting from the transaction). Until such a restructured agreement is entered
into, the services, licenses and other agreements between HealthAxis and each
constituent party to the transaction shall continue to be serviced, tracked,
reported, paid and provided separately to each constituent organization under
its original agreement with HealthAxis as if the transaction had not taken
place.

8.5 Survival. Upon any cancellation, termination or rescission of this
Agreement, it is the intention of the parties that the provisions of this
Agreement shall continue to apply to those duties and obligations which are
intended to survive any such cancellation, termination or rescission, including,
without limitation, the provisions of Sections 2.3, 6.1, 6.2, 7.3, 8.1, 8.2,
8.3, 8.6 and 8.7 herein.

8.6 Notice. All notices, requests, demands and other communications to be given
or delivered under or by reason of the provisions of this Agreement will be in
writing and will be deemed given (i) when delivered by hand; (ii) on the next
business day when sent by overnight express mail; (iii) when sent by confirmed
facsimile with a copy sent by another means specified in this Section; or (iv)
on the third business day after the day of mailing, when mailed by United States
mail, registered or certified mail, postage prepaid and addressed as follows:

                  In the case of UICI:

                  UICI
                  4001 McEwen
                  Dallas, Texas 75244
                  Attn: Matthew R. Cassell

                  In the case of HealthAxis:

                  HealthAxis.com, Inc.
                  5215 N. O'Connor Blvd.
                  Suite 800
                  Irving, Texas 75039
                  Attn:  Jim Taylor, V.P. of Finance

8.7 Miscellaneous. THE LAWS OF THE STATE OF TEXAS AND THE LAWS OF THE UNITED
STATES OF AMERICA SHALL GOVERN THE RIGHTS AND DUTIES OF THE PARTIES HERETO AND
THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT.
This Agreement and the exhibits, schedules and/or addenda attached hereto
supersede all prior agreements and understandings, if any, of the parties hereto
relating to the subject matter hereof, including, without limitation, all term
sheets and other documentation regarding the formation of this Agreement. This
<PAGE>

Agreement may be amended only by an instrument in writing executed by the
parties hereto, and supplemented only by documents delivered (or to be
delivered) in accordance with the express terms hereof. In case any one or more
of the provisions contained in this Agreement shall be held to be invalid,
illegal, unenforceable or inapplicable in any respect, such invalidity,
illegality, unenforceability or inapplicability shall not affect any other
provision hereof and this Agreement shall be construed as if such invalid,
illegal, unenforceable or inapplicable provisions had never been contained
herein. This Agreement may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument and facsimile signatures
hereon shall be deemed original signatures.

         IN WITNESS WHEREOF, this Agreement has been executed by the parties to
be effective as of the 25th day of January, 2001.

ADDRESSES:                                        UICI:

                                                  UICI
4001 McEwen                                       a Delaware corporation
Dallas, Texas 75244

                                                  By:
                                                     ----------------------

                                                     ----------------------
                                                     Its:
                                                         ------------------

                                                  HEALTHAXIS:

                                                  HealthAxis.com, Inc.,
5215 N. O'Connor Blvd.                            a Pennsylvania corporation
Suite 800
Irving, Texas  75039                              By:
                                                     -----------------------

                                                     -----------------------
                                                     Its:
                                                         -------------------
<PAGE>

                                   EXHIBIT "A"

                                LICENSED SOFTWARE

                                  I. Insur-Web

Insur-Web Internet Connectivity Software includes common software modules
consisting of both application software and database engines. The modules and
their basic functionality are described as follows:

Dynamic Content Engine (DCE) determines the rendering of the defined templates
to dynamically displaying content.
o    Administrative tool creates relationships between templates, pages, zones
     and content
o    All content is stored in the Dynamic Content Engine database
o    Specific content items can be used in multiple locations on the
     presentation layer (ex. footer information)
o    "Descriptors" are assigned to content which can then be used
     programmatically to display the content; One to many descriptors can be
     applied
o    Approach for some syndication requirements still being developed which will
     involve the DCE process (ex. Style sheet usage)
o    Very fast database (in server memory) used to display common zones

Personal Space Engine (PSE) is the personal storage facility for profile and
quote information and generated documents.
o    Consumer user view and Administrative view of personal space
o    For small group specifically, the last quote generated can be stored in the
     personal space of the user
o    Essentially a data store for multiple document types that can be placed
     there either by a system process or manually
o    File types stored directly in the database as binary objects with specific
     types associated (ex. Word doc)
o    Administrator of personal can view or add items directly for a user with an
     admin ID

Personalization & Membership Engine (PNM) creates accounts and stores security
information.
o    PNM Defines System Security Approach:
o    User Access Levels
o    Administrative User Creation and Access Levels to Specific Engines
o    Future information storage for profiling
<PAGE>

Plan Definition System (PDS) determines plan availability within a region and
maintains feature information.
o    PDS Defines Carrier's Product Offerings Including:
o    Plan Benefits
o    Riders
o    Plan Availability
o    Effective Dates
o    Area Definitions (ZIP code bands)
o    Content for Quote Results
o    co-pay, deductibles, co-insurance

Rating Engine (RTE) Utilizes both the Rate Rules module and Rate Datamart to
determine rate quotes.
o    Databases hold the product, rules and rate information
o    Plan Definition holds product information (OLTP database)
o    Rates Datamart holds all combinations of rate attributes (datamart)
o    Rate Rules Database holds the algorithms

Dynamic Forms Engine (DFE) supports the creation and provides the movement of
application forms to screen, personal space, and BizTalk XML interface.
o    Forms Engine intended to be used on the interface layer where user input is
     required such as on the application or quote request screens
o    Business issue being addressed is how to drive the rapid creation of new
     online applications
o    Currently the database schema has been developed to store the "forms"

Event Tracking Engine (ETE) contains business rules to support the production of
statistics.

Insur- E-Print Forms based virtual merge and print global service which
distributes both electronic and paper output.

Insur-Workflow Application software and messaging software (using BizTalk
Orchastra and MSMQ) that distributes information.

Insur-E-Pay Application software for the electronic payment of credit card and
Account Clearing House (ACH) transactions.

Business Functionality Insur-Retail as well as member, employer and provider
self-service business functionality.
<PAGE>

                                II. Insur-Enroll

Insur-Enroll includes the following standard product features:

Supported Enrollment Processes
o    New Hire
o    Ongoing "Life Event" Changes
o    Open Enrollment

Web Interfaces
o    Login Page (universal)
o    Employee Interface (EE)
o    Administrative Interface (ADM)
o    Customer Service Interface (CSR)

Login Page Interface
o    Universal for all System Interfaces (Employee, Administrative, CSR)
     -  Personalization & Membership Engine (PNM)
     -  User specific Login ID and Password
     -  Forced "Change Password" functionality
o    Customizable with Client Logo and text
o    Secure Access - 40 bit or 128 bit Secure Socket Layer (SSL) encryption
     technology

Employee Interface
o    Welcome Page -customizable
o    Universal Functionality - all pages
     -  Customizable with Client Logo and text
     -  Task Bar - Online References, Benefit Booklets, E-mail & Help
     -  Progress Bar - completion indicator
     -  Navigation Bars - Forward, Back, Exit, Complete
     -  Employee, Dependent & Current Coverage Data populated via import
     -  Standard data fields (editable & non-editable)
     -  Standard data field validations - required, date, alpha, numeric &
        e-mail formats
     -  Standard error messages based on data validations
     -  Standard Eligibility Rules applied
     -  Unlimited Benefit Plans, Levels of Coverage
     -  Pre-Tax / Post-Tax Deduction Types
     -  Standard Plan Business Rules applied
     -  Web Links to Providers, PCP Directories, Dentist Directories
     -  Links to Online Documents
     -  Standard utilization of drop down boxes, free form fields and radio
        buttons driven by plan business rules
     -  Standard error messages driven by eligibility and plan business rules
o    Employee Information Page
o    Dependent Information Page (with ability to Add/Remove)
o    Medical Coverage Page
o    Primary Care Physician Page
o    Medical Coordination of Benefits Question Page
o    Medical Coordination of Benefits Information Page
o    Dental Coverage Page
<PAGE>

o    Dental Coordination of Benefits Question Page
o    Dental Coordination of Benefits Information Page
o    Additional Benefits Page
     -  Vision
     -  Medical Expense FSA
     -  Dependent Care FSA
     -  Long Term Disability Income Protection (LTD)
     -  Short Term Disability Income Protection (STD)
     -  Basic Term Life Insurance
     -  Supplemental Term Life Insurance
     -  Basic Accidental Death & Dismemberment Insurance (AD&D)
     -  Supplemental Accidental Death & Dismemberment Insurance (AD&D)
o    Employee 401(k) Information Page (initial Contribution Amount, Fund Options
     and Funds Allocation elections)
o    Beneficiary Page (with ability to Add/Remove)
o    Summary Of Benefits Page
     -  Insurance Plans/Benefits selected
     -  Per Pay Period Costs per Insurance Plan/Benefit
     -  Pre-Tax or Post-Tax Deduction type selected
     -  Total Per Pay Period Deductions
     -  Customizable "Acknowledgement /Disclaimer"
o    Submitted and Saved Successfully Page
o    Standard Workflow -Confirmation Notice (single destination)

Administrative Interface
o    Admin Main Menu - all pages
     -  Customizable with Client Logo
     -  Displays Current Day/Date
     -  Option to Administer multiple Companies
     -  Help Instructions displayed on each page/sub-page
o    Task Bar (Vertical or Horizontal Functionality)
     -  Admin Tools
        >>  Add Employee Account
        >>  Edit Employee Account
        >>  Add Link
        >>  Remove Link
        >>  Post Announcement
        >>  Remove Announcement
        >>  Add Online Documents
        >>  Remove Online Documents
        >>  Manage Enrollment Period
        >>  Online Reports
o    References
     -  View Summary
o    Enrollment
     -  Edit Employee Enrollment
     -  Confirmation Notices - View & Print
<PAGE>

o    Help Desk
     -  Ability to E-mail the HealthAxis Help Desk
o    Log Out

Customer Service Rep (CSR) Interface
o    Admin Main Menu - View same as Administrator with limited task bar
     functionality
o    Limited Task Bar (Vertical or Horizontal Functionality)
o    Enrollment
     -  View Employee Enrollment
     -  Confirmation Notices
o    Help Desk
     -  E-mail Help Desk
o    Log Out

Other Features
o    System Access
o    Internet
     -  Internet Explorer 4.0x or above (SP2)
     -  Netscape Communicator 4.0x or above
o    Data Import/Export
     -  Support for client/system specific file formats
o    Transaction Logging
     -  Major milestones and events
<PAGE>

                                   EXHIBIT "B"

PART I.   LICENSE FEE

The one-time up front license fee for the Licensed Software described on Exhibit
"A" is $1,836,900.00.

PART II.  MAINTENANCE FEES

The monthly Maintenance Fee for the Licensed Software described on Exhibit "A"
is $22,961.25.

PART III. OTHER

UICI shall be responsible for any and all sales, use, excise or similar taxes
which arise in connection with, or as a result of the license granted herein and
the maintenance and support or any other services or other items provided
pursuant to this Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]