Document:

EX-10.62

PLUMAS BANK

DEFERRED FEE AGREEMENT

THIS AGREEMENT is made this 23rd day of December, 2004 by and between Plumas Bank (the
“Bank”), and Thomas Watson (the “Director”).

INTRODUCTION

To encourage the Director to remain a member of the Bank’s Board of Directors, the Bank is willing
to provide to the Director a deferred fee opportunity. The Bank will pay the benefits from its
general assets.

AGREEMENT

The Director and the Bank agree as follows:

ARTICLE 1

Definitions

1.1 Definitions. Whenever used in this Agreement, the following words and phrases
shall have the meanings specified:

1.1.1 “Change of Control” means the transfer of shares of the Bank’s voting common stock such
that one person or a group of persons acting in concert acquires (or is deemed to acquire under
Section 318 of the Code) 51% or more of the Bank’s outstanding voting common stock.

1.1.2 “Code” means the Internal Revenue Code of 1986, as amended. References to a Code
section shall be deemed to be to that section as it now exists and to any successor provision.

1.1.3 “Disability” means the Director’s inability to perform substantially all normal duties
of a director, as determined by the Bank’s Board of Directors in its sole discretion. As a
condition to any benefits, the Bank may require the Director to submit to such physical or mental
evaluations and tests as the Board of Directors deems appropriate.

1.1.4 “Election Form” means the Form attached as Exhibit 1.

1.1.5 “Fees” means the total directors fees payable to the Director.

1.1.6 “Normal Termination Date” means the Director completing 15 Years of Service.

1.1.7 “Termination of Service” means the Director’s ceasing to be a member of the Bank’s Board
of Directors for any reason whatsoever.

1.1.8 “Years of Service” means the total number of twelve-month periods during which the
Director serves as a member of the Bank’s Board of Directors beginning from the date of this
Agreement.

ARTICLE 2

Deferral Election

2.1 Initial Election. The Director shall make an initial deferral election under this
Agreement by filing with the Bank a signed Election Form within 15 days after the date of this
Agreement. The Election Form shall set forth the amount of Fees to be deferred and the form of
benefit payment. The Election Form shall be effective to defer only Fees earned after the date the
Election Form is received by the Bank.

2.2 Election Changes

2.2.1 Generally. The Director may modify the amount of Fees to be deferred by filing
a subsequent signed Election Form with the Bank. The modified deferral shall not be effective
until the calendar year following the year in which the subsequent Election Form is received by the
Bank. The Director may not change the form of benefit payment without the prior written approval
of the Board of Directors of the Bank.

2.2.2 Hardship. If an unforeseeable financial emergency arising from the death of a
family member, divorce, sickness, injury, catastrophe or similar event outside the control of the
Director occurs, the Director, by written instructions to the Bank may reduce future deferrals
under this Agreement.

ARTICLE 3

Deferral Account

3.1 Establishing and Crediting. The Bank shall establish a deferral account
(“Deferral Account”) on its books for the Director, and shall credit to the Deferral Account the
following amounts:

3.1.1 Deferrals. The Fees deferred by the Director as of the time the Fees would have
otherwise been paid to the Director.

3.1.2 Interest. On a quarterly basis and immediately prior to the payment of any
benefits, interest shall be credited to the Deferral Account with an annual interest rate equal to
the floating Wall Street Journal Prime Rate as of the first business day of the month for such
month or part thereof that interest is to be credited minus 1% per annum. Interest on the Deferral
Account shall be compounded quarterly. Interest shall continue to accrue on the Deferral Account
until all benefits have been paid.

3.2 Statement of Accounts. The Bank shall provide to the Director, within one hundred
twenty (120) days after each anniversary of this Agreement, a statement setting forth the Deferral
Account balance.

3.3 Accounting Device Only. The Deferral Account is solely a device for measuring
amounts to be paid under this Agreement. The Deferral Account is not a trust fund of any kind.
The Director is a general unsecured creditor of the Bank for the payment of benefits. The benefits
represent the mere Bank promise to pay such benefits. The Director’s rights to such benefits are
not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by the Director’s creditors.

ARTICLE 4

Lifetime Benefits

4.1 Normal Termination Benefit. Upon the Director’s Termination of Service, the Bank
shall pay to the Director the benefit described in this Section 4.1.

4.1.1 Amount of Benefit. The benefit under this Section 4.1 is the Deferral Account
balance at the date of the Director’s Termination of Service including interest to the time of
payment as provided in Section 3.1.2.

4.1.2 Payment of Benefit. The Bank shall pay the benefit to the Director in 60
monthly installments as nearly equal as possible commencing on the first day of the month following
the Director’s Termination of Service.

4.2 Disability Benefit. If the Director terminates service as a director for
Disability prior to the Normal Termination Date, the Bank shall pay to the Director the benefit
described in this Section 4.2.

4.2.1 Amount of Benefit. The benefit under this Section 4.2 is the Deferral Account
balance at the Director’s Termination of Service including interest to the time of payment as
provided in Section 3.1.2.

4.2.2 Payment of Benefit. The Bank shall pay the benefit to the Director in a lump
sum within 15 days after the Director’s Termination of Service.

4.3 Change of Control Benefit. Upon a Change of Control while the Director is in the
active service of the Bank and prior to the Normal Termination Date, the Bank shall pay to the
Director the benefit described in this Section 4.3 in lieu of any other benefit under this
Agreement.

4.3.1 Amount of Benefit. The benefit under this Section 4.3 is the Deferral Account
balance at the date of the Change of Control including interest to the time of payment as provided
in Section 3.1.2.

4.3.2 Payment of Benefit. The Bank shall pay the benefit to the Director in a lump
sum within 15 days after the date of the Change of Control.

4.4 Hardship Distribution. Upon the Bank’s determination (following petition by the
Director) that the Director has suffered an unforeseeable financial emergency as described in
Section 2.2.2, the Bank shall distribute to the Director all or portion of the Deferral Account
balance as determined by the Bank, but in no event shall the distribution be greater than is
necessary to relieve the financial hardship.

ARTICLE 5

Death Benefits

5.1 Death During Active Service. If the Director dies while in the active service of
the Bank and prior to the Normal Termination Date, the Bank shall pay to the Director’s beneficiary
the benefit described in this Section 5.1 and such benefit shall be in lieu of any other benefit in
this Agreement.

5.1.1 Amount of Benefit. The benefit under Section 5.1 is the Deferral Account
balance at the time of the Director’s death including interest to the time of payment as provided
in Section 5.1.2.

5.1.2 Payment of Benefit. The Bank shall pay the benefit in 120 equal installments
to the beneficiary beginning on the first day of the month following the Director’s death.

ARTICLE 6

Beneficiaries

6.1 Beneficiary Designations. The Director shall designate a beneficiary by filing a
written designation with the Bank. The Director may revoke or modify the designation at any time
by filing a new designation. However, designations will only be effective if signed by the
Director and accepted by the Bank during the Director’s lifetime. The Director’s beneficiary
designation shall be deemed automatically revoked if the beneficiary predeceases the Director, or
if the Director names a spouse as beneficiary and the marriage is subsequently dissolved. If the
Director dies without a valid beneficiary designation, all payments shall be made to the Director’s
surviving spouse, if any, and if none, to the Director’s surviving children and the descendants of
any deceased child by right of representation, and if no children or descendants survive, to the
Director’s estate.

6.2 Facility of Payment. If a benefit is payable to a minor, to a person declared
incompetent, or to a person incapable of handling the disposition of his or her property, the Bank
may pay such benefit to the guardian, legal representative or person having the care or custody of
such minor, incompetent person or incapable person. The Bank may require proof of incompetency,
minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such
distribution shall completely discharge the Bank from all liability with respect to such benefit.

ARTICLE 7

Claims and Review Procedures

7.1 Claims Procedure. The Bank shall notify the Director’s beneficiary in writing,
within ninety (90) days of his or her written application for benefits, of his or her eligibility
or noneligibility for benefits under the Agreement. If the Bank determines that the beneficiary is
not eligible for benefits or full benefits, the notice shall set forth (1) the specific reasons for
such denial, (2) a specific reference to the provisions of the Agreement on which the denial is
based, (3) a description of any additional information or material necessary for the claimant to
perfect his or her claim, and a description of why it is needed, and (4) an explanation of the
Agreement’s claims review procedure and other appropriate information as to the steps to be taken
if the beneficiary wishes to have the claim reviewed. If the Bank determines that there are
special circumstances requiring additional time to make a decision, the Bank shall notify the
beneficiary of the special circumstances and the date by which a decision is expected to be made,
and may extend the time for up to an additional ninety-day period.

7.2 Review Procedure. If the beneficiary is determined by the Bank not to be eligible
for benefits, or if the beneficiary believes that he or she is entitled to greater or different
benefits, the beneficiary shall have the opportunity to have such claim reviewed by the Bank by
filing a petition for review with the Bank within sixty (60) days after receipt of the notice
issued by the Bank. Said petition shall state the specific reasons which the beneficiary believes
entitle him or her to benefits or to greater or different benefits.

Within sixty (60) days after receipt by the Bank of the petition, the Bank shall afford the
beneficiary (and counsel, if any) an opportunity to present his or her position to the Bank orally
or in writing, and the beneficiary (or counsel) shall have the right to review the pertinent
documents. The Bank shall notify the beneficiary of its decision in writing within the sixty-day
period, stating specifically the basis of its decision, written in a manner calculated to be
understood by the beneficiary and the specific provisions of the Agreement on which the decision is
based. If, because of the need for a hearing, the sixty-day period is not sufficient, the decision
may be deferred for up to another sixty-day period at the election of the Bank, but notice of this
deferral shall be given to the beneficiary.

ARTICLE 8

Amendments and Termination

The Bank may amend or terminate this Agreement at any time if, pursuant to legislative,
judicial or regulatory action, continuation of the Agreement would (i) cause benefits to be taxable
to the Director prior to actual receipt, or (ii) result in significant financial penalties or other
significantly detrimental ramifications to the Bank (other than the financial impact of paying the
benefits). In no event shall this Agreement be terminated without payment to the Director of the
Deferral Account balance attributable to the Director’s deferrals and interest credited on such
amounts.

ARTICLE 9

Miscellaneous

9.1 Binding Effect. This Agreement shall bind the Director and the Bank, and their
beneficiaries, survivors, executors, administrators and transferees.

9.2 No Guaranty of Employment. This Agreement is not a contract for services. It
does not give the Director the right to remain a director of the Bank, nor does it interfere with
the shareholders’ rights to replace the Director. It also does not require the Director to remain
a director nor interfere with the Director’s right to terminate services at any time.

9.3 Non-Transferability. Benefits under this Agreement cannot be sold, transferred,
assigned, pledged, attached or encumbered in any manner.

9.4 Tax Withholding. The Bank shall withhold any taxes that are required to be
withheld from the benefits provided under this Agreement.

9.5 Applicable Law. The Agreement and all rights hereunder shall be governed by the
laws of California, except to the extent preempted by the laws of the United States of America.

9.6 Unfunded Arrangement. The Director and beneficiary are general unsecured
creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the
mere promise by the Bank to pay such benefits. The rights to benefits are not subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of the Director. Any insurance on the Director’s life is a general
unpledged, unrestricted asset of the Bank to which the Director and beneficiary have no preferred
or secured claim. Furthermore, such insurance shall not be deemed to be held under any trust for
the benefit of the Director or his or her beneficiaries or to be security for the performance of
the obligation of Bank under this Agreement.

IN WITNESS WHEREOF, the Director and a duly authorized Bank officer have signed this Agreement.

	 	 	 
	DIRECTOR

	 	PLUMAS BANK
	 

	 	 
	 
	 	 
	/s/ Thomas Watson

	 	By: /s/ W. E. Elliott
	 

	 	 
	 
	 	 
	
 
	 	Title: President & CEO
	
 
	 	 
	 
	 	 

1

EXHIBIT I

DEFERRED FEE AGREEMENT

Deferral Election

I elect to defer fees under my Deferred Fee Agreement with the Bank, as follows:

	 	 	 	 	 
	Amount of Deferral	 	Frequency of Deferral	 	Duration
	[Initial and Complete one]

	 	

	 	

	 
	 	 	 	 
	I elect to defer 100% of Fees

	 	Each fee payment
	 	The Year 2005 only
	 

	 	

	 	

	 
	 	 	 	 
	X I elect to defer $1,500 of Fees

	 	

	 	

	 

	 	

	 	

	 
	 	 	 	 
	I elect not to defer Fees

	 	

	 	

	 

	 	

	 	

I understand that I may change the amount, frequency and duration of my deferrals by filing a new
election form with the Company; provided, however, that any subsequent election as to the amount of
deferral or duration of deferral will not be effective until the calendar year following the year
in which the new election is received by the Company. I understand that my deferrals are subject
to Section 409A of the Internal Revenue Code of 1986, as amended.

Form of Benefit

The benefits under the Agreement will be paid to me or my proper beneficiary as provided in
the deferred fee agreement associated with this election form.

I understand that the form of benefit may not be changed even if I later change the amount of my
deferrals under the Agreement.

2SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT ("Agreement") dated as of December 30,
2004 (the "Effective Date"), by and among New Century Energy Corp., a Colorado
corporation, 5851 San Felipe, Suite 775, Houston, Texas 77057 (the "Company"),
and the undersigned purchasers (collectively, the "Buyer").

                                 W H E R E A S:
                                 -------------

     A. The Company and the Buyer are executing and delivering this Agreement in
reliance  upon  the  exemption  from  securities registration in afforded by the
rules  and  regulations promulgated by the United States Securities and Exchange
Commission  (the  "SEC");

     B.  Buyer  desires  to  purchase  and the Company desires to sell, upon the
terms  and  conditions  set  forth  in  this Agreement, 856,000 shares of Common
Stock, $0.001 par value per share (the "Common Stock"), of the Company, upon the
terms and subject to the limitations and conditions set forth in this Agreement.

     NOW  THEREFORE,  the  Company  and  the  Buyer  hereby  agree  as  follows:

     1.  PURCHASE  AND  SALE  OFCOMMON  STOCK.
         -------------------------------------

          A.  PURCHASE  OFCOMMON  STOCK. On the Closing Date (as defined below),
              -------------------------
     the  Company  shall  deliver and sell to Buyer and Buyer agrees to purchase
     from  the  Company  the  Common  Stock.

          B.  FORM OF PAYMENT. On the Closing Date (as defined below), the Buyer
              ---------------
     shall deliver to the Company that certain Promissory Note dated January 30,
     2004  in  the  original  principal amount of $400,000 secured by a Security
     Agreement,  Pledge  Agreement  and  Financing  Statement  of even date (the
     "Promissory Note") for the Common Stock to be transferred and sold to it at
     the  Closing  (as  defined  below)  against  delivery  of  certificates
     representing  the  Common  Stock. The Promissory Note shall be delivered by
     Purchaser  to  the  Company  upon  issuance of the Common Stock ("Closing")
     marked  paid  along  with  a  release  of  the  Security  Agreement, Pledge
     Agreement  and  Financial  Statement.

          C.  CLOSING  DATE.  The  date and time of the transfer and sale of the
     Common Stock pursuant to this Agreement (the "Closing Date") shall be 10:00
     a.m. Central Standard Time on the next business day following the fifth day
     after  satisfaction  (or  waiver)  of  the  conditions thereto set forth in
     Section  6 and Section 7 below or such other mutually agreed upon time. The
     Closing  contemplated  by this Agreement shall occur on the Closing Date at
     such  location  as  may  be  agreed  to  by  the  parties.

     2.     BUYER'S REPRESENTATIONS AND WARRANTIES.  Buyer represents and
            --------------------------------------
     warrants  to  the  Company  that:

          A.  INVESTMENT PURPOSE. As of the date hereof, the Buyer is purchasing
              ------------------
     the  shares of Common Stock for its own account and not with a present view
     towards  the  public sale or distribution thereof, except pursuant to sales
     registered  or  exempted  from  registration  under the 1933 Act; provided,
                                                                       ---------
     however,  that  by  making  the  representations herein, the Buyer does not
     -------
     agree  to  hold  any of the shares of Common Stock for any minimum or other
     specific  term  and  reserves  the right to dispose of the shares of Common
     Stock  at  any  time  in  accordance  with  or  pursuant  to a registration
     statement  or  an  exemption  under  the  1933  Act.

          B.  ACCREDITED  INVESTOR STATUS. The Buyer is an "accredited investor"
              --------------------------
     as  that  term  is  defined  in Rule 501(a) of Regulation D (an "Accredited
     Investor").

          C.  RELIANCE  ON  EXEMPTIONS. The Buyer understands that the shares of
              ------------------------
     Common Stock are being transferred and sold to it in reliance upon specific
     exemptions  from the registration requirements of United States federal and
     state  securities  laws  and that the Company is relying upon the truth and
     accuracy  of,  and  the  Buyer's  compliance  with,  the  representations,
     warranties, agreements, acknowledgments and understandings of the Buyer set
     forth  herein in order to determine the availability of such exemptions and
     the  eligibility  of  the  Buyer  to  acquire  the  shares of Common Stock.

<PAGE>

          D.  INFORMATION.  The  Buyer  and  its  advisors,  if  any,  have been
              -----------
     furnished  with  all  materials  relating  to  the  business,  finances and
     operations  of  the Company and materials relating to the transfer and sale
     of the shares of Common Stock which have been requested by the Buyer or its
     advisors.  The  Buyer  and  its  advisors,  if  any, have been afforded the
     opportunity to ask questions of the Company. Notwithstanding the foregoing,
     the  Company  has  not  disclosed  to  the  Buyer  any  material  nonpublic
     information  and will not disclose such information unless such information
     is  disclosed  to the public prior to or promptly following such disclosure
     to  the  Buyer.  Neither  such  inquiries  nor  any  other  due  diligence
     investigation  conducted by Buyer or any of its advisors or representatives
     shall  modify,  amend  or  affect  Buyer's  right  to rely on the Company's
     representations  and  warranties  contained  in  Section 3 below. The Buyer
     understands  that  its  investment in the shares of Common Stock involves a
     significant  degree  of  risk.

          E.  GOVERNMENTAL  REVIEW.  The Buyer understands that no United States
              --------------------
     federal  or state agency or any other government or governmental agency has
     passed  upon  or  made  any  recommendation or endorsement of the shares of
     Common  Stock.

          F.  TRANSFER  OR  RE-SALE.  The Buyer understands that (i) the sale or
              ---------------------
     re-sale  of  the  shares  of  Common  Stock  has  not been and is not being
     registered  under the 1933 Act or any applicable state securities laws, and
     the  shares of Common Stock may not be transferred unless (a) the shares of
     Common Stock are sold pursuant to an effective registration statement under
     the  1933 Act, (b) the Buyer shall have delivered to the Company an opinion
     of  counsel  (which opinion shall be in form, substance and scope customary
     for  opinions of counsel in comparable transactions) to the effect that the
     shares of Common Stock to be sold or transferred may be sold or transferred
     pursuant  to  an exemption from such registration, (c) the shares of Common
     Stock  are  sold  or  transferred to an "affiliate" (as defined in Rule 144
     promulgated  under  the 1933 Act (or a successor rule) ("Rule 144")) of the
     Buyer  who  agrees to sell or otherwise transfer the shares of Common Stock
     only  in  accordance  with  this  Section  2(f)  and  who  is an Accredited
     Investor,  or (d) the shares of Common Stock are sold pursuant to Rule 144;
     (ii)  any  sale of such shares of Common Stock made in reliance on Rule 144
     may  be made only in accordance with the terms of said Rule and further, if
     said  Rule  is  not  applicable, any re-sale of such shares of Common Stock
     under  circumstances  in  which the Company (or the person through whom the
     sale  is  made)  may  be  deemed to be an Buyer (as that term is defined in
     Section  2(11)  of  the  1933  Act)  may require compliance with some other
     exemption  under  the  1933  Act  or  the  rules and regulations of the SEC
     thereunder; and (iii) neither the Company nor any other person is under any
     obligation  to  register  such shares of Common Stock under the 1933 Act or
     any state securities laws or to comply with the terms and conditions of any
     exemption  thereunder.  Notwithstanding  the  foregoing  or  anything  else
     contained herein to the contrary, the shares of Common Stock may be pledged
     as  collateral  in  connection  with  a  bona  fide margin account or other
     lending  arrangement.

          G.  LEGENDS.  The  Buyer understands that the Common Stock, until such
              -------
     time  as the shares of Common Stock have been registered under the 1933 Act
     or otherwise may be sold pursuant to Rule 144 without any restriction as to
     the  number  of  securities  as  of  a  particular  date  that  can then be
     immediately sold, the certificates representing the Common Stock may bear a
     restrictive legend in substantially the following form (and a stop-transfer
     order may be placed against transfer of the certificates for such shares of
     Common  Stock):

          "The  securities  represented  by  this  certificate  have  not  been
     registered under the Securities Act of 1933, as amended. The securities may
     not  be  sold,  transferred  or  assigned  in  the  absence of an effective
     registration  statement for the securities under said Act, or an opinion of
     counsel,  in form, substance and scope customary for opinions of counsel in
     comparable  transactions,  that registration is not required under said Act
     or  unless  sold  pursuant  to  Rule  144  under  said  Act."

                                        2

<PAGE>

          The  legend  set  forth  above shall be removed, and the Company shall
     issue  a certificate without such legend to the holder of any Security upon
     which  it  is  stamped,  if,  unless otherwise required by applicable state
     securities  laws,  (a)  such  Security  is  registered  for  sale  under an
     effective  registration statement filed under the 1933 Act or otherwise may
     be  sold  pursuant  to Rule 144 without any restriction as to the number of
     securities  as  of  a particular date that can then be immediately sold, or
     (b)  such  holder provides the Company with an opinion of counsel, in form,
     substance  and  scope  customary  for  opinions  of  counsel  in comparable
     transactions, to the effect that a public sale or transfer of such Security
     may  be  made  without  registration  under  the  1933 Act and such sale or
     transfer  is  effected  or  (c)  such  holder  provides  the  Company  with
     reasonable  assurances that such Security can be sold pursuant to Rule 144.
     The  Buyer  agrees  to  sell  all  shares  of Common Stock, including those
     represented  by a certificate(s) from which the legend has been removed, in
     compliance  with  applicable  prospectus  delivery  requirements,  if  any.

          H.  AUTHORIZATION;  ENFORCEMENT.  This  Agreement  has  been  duly and
              ---------------------------
     validly authorized, executed and delivered on behalf of the Buyer, and this
     Agreement  constitutes  a  valid  and  binding  agreement  of  the  Buyer
     enforceable  in  accordance  with  its  terms.

     3. REPRESENTATIONS AND WARRANTIES OFTHE COMPANY. The Company represents and
        --------------------------------------------
warrants  to  the  Buyer  that:

          A.  ORGANIZATION  AND  QUALIFICATION.  The  Company  and  each  of its
              --------------------------------
     Subsidiaries  (as  defined below), if any, is a corporation duly organized,
     validly existing and in good standing under the laws of the jurisdiction in
     which  it  is  incorporated,  with  full power and authority (corporate and
     other)  to  own,  lease, use and operate its properties and to carry on its
     business  as  and  where  now  owned, leased, used, operated and conducted.
     Company  has  furnished  Buyer  a  true  and  correct  list  of  all of the
     Subsidiaries  of  the  Company  and  the  jurisdiction  in  which  each  is
     incorporated. The Company and each of its Subsidiaries is duly qualified as
     a  foreign  corporation  to  do  business  and is in good standing in every
     jurisdiction in which its ownership or use of property or the nature of the
     business  conducted  by  it makes such qualification necessary except where
     the  failure  to  be  so  qualified  or  in  good standing would not have a
     Material  Adverse  Effect.  "Material  Adverse  Effect"  means any material
     adverse  effect on the business, operations, assets, financial condition or
     prospects  of the Company or its Subsidiaries, if any, taken as a whole, or
     on the transactions contemplated hereby or by the agreements or instruments
     to  be  entered  into  in  connection  herewith.  "Subsidiaries"  means any
     corporation  or other organization, whether incorporated or unincorporated,
     in  which  the  Company  owns,  directly or indirectly, any equity or other
     ownership  interest.

          B. AUTHORIZATION; ENFORCEMENT. (i) The Company has all requisite power
             --------------------------
     and  authority  to  enter into and perform this Agreement and to consummate
     the  transactions  contemplated hereby and to transfer the shares of Common
     Stock, in accordance with the terms hereof, (ii) the execution and delivery
     of  this  Agreement  by  the  Company  and  the  consummation  by it of the
     transactions  contemplated  hereby have been duly authorized by the Company
     and  no  further consent or authorization of the Company is required, (iii)
     this  Agreement  has  been  duly executed and delivered by the Company, and
     (iv)  this  Agreement  constitutes a legal, valid and binding obligation of
     the  Company  enforceable against the Company in accordance with its terms.

          C. CAPITALIZATION. As of the date hereof, the authorized capital stock
             --------------
     of  the  Company consists of (a) 100,000,000 shares of common stock, $0.001
     par  value  ("Common  Stock")  of  which  38,599,107  shares are issued and
     outstanding,  and  1,500,000  shares  of  which  are  reserved for issuance
     pursuant  to  the  Series  A Convertible Preferred Stock; and (b) 20,000,00
     shares  of  preferred  stock,  $0.001  par  value, 5,000 shares of Series A
     Convertible  Preferred Stock are designated, issued and outstanding, and no
     shares  of  which,  other  than  the Common Stock are reserved for issuance
     pursuant to stock option plans or other agreements. All of such outstanding
     shares of capital stock are duly authorized, validly issued, fully paid and
     non-assessable.  No  shares  of capital stock of the Company are subject to
     preemptive  rights  or  any other similar rights of the stockholders of the
     Company or any liens or encumbrances imposed through the actions or failure
     to  act  of  the  Company;  and
                                        3

<PAGE>

          D.  NO  CONFLICTS.  The  execution,  delivery  and performance of this
              -------------
     Agreement  by  the  Company  and  the  consummation  by  the Company of the
     transactions  contemplated hereby will not (i) conflict with or result in a
     violation  of  any provision of the Articles of Incorporation or By-laws or
     (ii)  violate  or conflict with, or result in a breach of any provision of,
     or  constitute a default (or an event which with notice or lapse of time or
     both  could  become  a  default)  under,  or  give  to others any rights of
     termination,  amendment,  acceleration  or  cancellation of, any agreement,
     indenture,  patent,  patent license or instrument to which the Company, any
     of  its  Subsidiaries  or  the  Company  is  a  party, or (iii) result in a
     violation  of  any  law,  rule,  regulation,  order,  judgment  or  decree
     (including  federal  and  state  securities  laws  and  regulations  and
     regulations  of  any  self-regulatory organizations to which the Company or
     its securities or the Company are subject) applicable to the Company or any
     of its Subsidiaries or the Company or by which any property or asset of the
     Company  or  any  of  its  Subsidiaries or the Company is bound or affected
     (except  for  such  conflicts,  defaults,  terminations,  amendments,
     accelerations,  cancellations  and violations as would not, individually or
     in  the aggregate, have a Material Adverse Effect). Neither the Company nor
     any  of  its Subsidiaries is in violation of its Articles of Incorporation,
     By-laws  or  other organizational documents and neither the Company nor any
     of  its  Subsidiaries  is  in default (and no event has occurred which with
     notice  or  lapse  of  time  or  both  could  put the Company or any of its
     Subsidiaries  in  default)  under,  and  neither the Company nor any of its
     Subsidiaries  has  taken any action or failed to take any action that would
     give  to  others  any  rights  of  termination,  amendment, acceleration or
     cancellation  of,  any  agreement,  indenture  or  instrument  to which the
     Company  or  any of its Subsidiaries is a party or by which any property or
     assets  of  the  Company  or  any of its Subsidiaries is bound or affected,
     except  for  possible  defaults  as  would  not,  individually  or  in  the
     aggregate,  have  a  Material Adverse Effect. The businesses of the Company
     and  its  Subsidiaries, if any, are not being conducted in violation of any
     law,  ordinance  or  regulation  of  any  governmental  entity.  Except  as
     specifically  contemplated by this Agreement and as required under the 1933
     Act  and  any applicable state securities laws, the Company is not required
     to  obtain  any  consent,  authorization or order of, or make any filing or
     registration  with, any court, governmental agency, regulatory agency, self
     regulatory  organization or stock market or any third party in order for it
     to  execute, deliver or perform any of its obligations under this Agreement
     in  accordance  with  the  terms  hereof or to transfer and sell the Common
     Stock  in  accordance  with the terms hereof. All consents, authorizations,
     orders,  filings  and registrations which the Company is required to obtain
     pursuant  to  the  preceding  sentence have been obtained or effected on or
     prior  to  the  date hereof. The Company is not in violation of the listing
     requirements  of  the  Electronic Bulletin Board (the "OTCBB") and does not
     reasonably  anticipate  that  the  Common  Stock  will  be  delisted by the
     Electronic  Bulletin  Board  in  the foreseeable future. The Company, after
     making  reasonable  inquiry, is unaware of any facts or circumstances which
     might  give  rise  to  any  of  the  foregoing.

                                        4

<PAGE>

          E.  SEC  DOCUMENTS;  FINANCIAL  STATEMENTS.  The Company has filed all
              --------------------------------------
     reports,  schedules,  forms,  statements and other documents required to be
     filed  by  it  with  the  SEC pursuant to the reporting requirements of the
     Exchange  Act  of  1934, as amended (the "1934 Act"), including Form 10-KSB
     for  the  fiscal  year  ended December 31, 2003 (all of the foregoing filed
     prior  to  the  date hereof and all exhibits included therein and financial
     statements and schedules thereto and documents (other than exhibits to such
     documents) incorporated by reference therein, being hereinafter referred to
     herein as the "SEC Documents"). The Company has delivered to Buyer true and
     complete  copies  of  the  SEC  Documents,  except  for  such  exhibits and
     incorporated  documents.  As  of  their respective dates, the SEC Documents
     complied in all material respects with the requirements of the 1934 Act and
     the  rules  and regulations of the SEC promulgated thereunder applicable to
     the  SEC  Documents,  and  none of the SEC Documents, at the time they were
     filed  with  the  SEC, contained any untrue statement of a material fact or
     omitted to state a material fact required to be stated therein or necessary
     in  order  to  make  the  statements therein, in light of the circumstances
     under  which they were made, not misleading. None of the statements made in
     any  such  SEC Documents is, or has been, required to be amended or updated
     under  applicable  law  (except for such statements as have been amended or
     updated  in  subsequent  filings  prior  the  date  hereof).  As  of  their
     respective  dates,  the financial statements of the Company included in the
     SEC  Documents complied as to form in all material respects with applicable
     accounting  requirements and the published rules and regulations of the SEC
     with  respect  thereto.  Such  financial  statements  have been prepared in
     accordance  with  United  States  generally accepted accounting principles,
     consistently  applied,  during  the  periods involved (except (i) as may be
     otherwise  indicated  in such financial statements or the notes thereto, or
     (ii)  in  the  case of unaudited interim statements, to the extent they may
     not include footnotes or may be condensed or summary statements) and fairly
     present in all material respects the consolidated financial position of the
     Company  and  its consolidated Subsidiaries as of the dates thereof and the
     consolidated  results  of  their  operations and cash flows for the periods
     then  ended  (subject,  in  the  case  of  unaudited  statements, to normal
     year-end  audit  adjustments).  Except  as  set  forth  in  the  financial
     statements of the Company included in the SEC Documents, the Company has no
     liabilities,  contingent  or otherwise, other than (i) liabilities incurred
     in  the  ordinary  course  of  business  since  December  31,  2003,  which
     individually  and  in  the  aggregate  are  not  material  to the financial
     condition  or  operating results of the Company, and (ii) obligations under
     contracts  and  commitments incurred in the ordinary course of business and
     not required under generally accepted accounting principles to be reflected
     in such financial statements, which, individually and in the aggregate, are
     not  material  to  the  financial  condition  or  operating  results of the
     Company.

          4.  COVENANTS.  The  parties  shall  use their best efforts to satisfy
              ---------
     timely  each  of  the  conditions  described  in  Section  6  and 7 of this
     Agreement.

          5.  TRANSFER  AGENT  INSTRUCTIONS. The Company shall issue irrevocable
              -----------------------------
     instructions to its transfer agent to issue certificates, registered in the
     name  of  Buyer or its nominee, for the Common Stock. All such certificates
     shall  bear  the  restrictive  legend  specified  in  Section  2(g) of this
     Agreement.  The  Company  warrants  that  no  instruction  other  than  the
     irrevocable  instructions  referred to in this Section 5, and stop transfer
     instructions  to  give  effect  to Section 2(f) hereof will be given by the
     Company  to  its  transfer  agent and that the shares of Common Stock shall
     otherwise be freely transferable on the books and records of the Company as
     and to the extent provided in this Agreement. Nothing in this Section shall
     affect  in  any  way  the  Buyer's  obligations  and agreement set forth in
     Section  2(g)  hereof  to  comply  with  all applicable prospectus delivery
     requirements,  if  any,  upon  re-sale  of  the shares of Common Stock. The
     Company  acknowledges that a breach by it of its obligations hereunder will
     cause irreparable harm to the Buyer, by vitiating the intent and purpose of
     the transactions contemplated hereby. Accordingly, the Company acknowledges
     that the remedy at law for a breach of its obligations under this Section 5
     will  be  inadequate  and  agrees,  in  the event of a breach or threatened
     breach  by  the  Company  of the provisions of this Section, that the Buyer
     shall  be  entitled,  in  addition  to  all other available remedies, to an
     injunction restraining any breach and requiring immediate transfer, without
     the  necessity  of  showing  economic  loss  and  without any bond or other
     security  being  required.

          6.  CONDITIONS  TO THE COMPANY'S OBLIGATION TO SELL. The obligation of
              -----------------------------------------------
     the Company hereunder to transfer and sell the Common Stock to Buyer at the
     Closing  is  subject  to the satisfaction, at or before the Closing Date of
     each  of  the  following conditions thereto, provided that these conditions
     are  for the Company's sole benefit and may be waived by the Company at any
     time  in  its  sole  discretion:

               A.  The  Buyer  shall have executed this Agreement, and delivered
          the  same  to  the  Company.

               B.  The  Buyer shall have delivered to the Company the Promissory
          Note  marked  paid  in  accordance  with  Section  1(b)  above.

               C.  The Buyer shall have delivered to the Company a duly executed
          release  of  the  Security  Agreement,  Pledge Agreement and Financing
          Statement.

               D.  The representations and warranties of the Buyer shall be true
          and  correct  in all material respects as of the date when made and as
          of  the  Closing  Date  as  though  made  at  that  time  (except  for
          representations  and warranties that speak as of a specific date), and
          the Buyer shall have performed, satisfied and complied in all material
          respects  with  the  covenants,  agreements and conditions required by
          this  Agreement  to  be  performed,  satisfied or complied with by the
          Buyer  at  or  prior  to  the  Closing  Date.

                                        5

<PAGE>

               E.  No  litigation,  statute,  rule, regulation, executive order,
          decree,  ruling  or  injunction  shall  have  been  enacted,  entered,
          promulgated  or  endorsed by or in any court or governmental authority
          of  competent  jurisdiction or any self-regulatory organization having
          authority  over  the  matters  contemplated hereby which prohibits the
          consummation  of  any  of  the  transactions  contemplated  by  this
          Agreement.

     7.  CONDITIONS  TO  BUYER'S  OBLIGATION  TO  PURCHASE.  The  obligation  of
         -------------------------------------------------
Buyer  hereunder  to  purchase the Common Stock at the Closing is subject to the
satisfaction, at or before the Closing Date of each of the following conditions,
provided  that  these  conditions  are  for such Buyer's sole benefit and may be
waived  by  such  Buyer  at  any  time  in  its  sole  discretion:

          A.  The  Company shall have executed this Agreement, and delivered the
     same  to  the  Buyer.

          B. The Company shall have delivered to Buyer certificates representing
     the  Common  Stock  registered  in  the  name  of  Buyer.

          C. The irrevocable instructions, in form and substance satisfactory to
     the  Buyer,  shall  have  been  delivered  to the Company's Transfer Agent.

          D. The representations and warranties of the Company shall be true and
     correct  in  all  material  respects as of the date when made and as of the
     Closing  Date  as  though made at such time (except for representations and
     warranties  that  speak  as  of a specific date) and the Company shall have
     performed,  satisfied  and  complied  in  all  material  respects  with the
     covenants,  agreements  and  conditions  required  by  this Agreement to be
     performed,  satisfied  or  complied  with by the Company at or prior to the
     Closing  Date. The Buyer shall have received a certificate or certificates,
     executed  by  the  chief  executive officer of the Company, and the Company
     dated  as of the Closing Date, to the foregoing effect and as to such other
     matters  as  may  be  reasonably requested by such Buyer including, but not
     limited  to  certificates  with  respect  to  the  Company's  Articles  of
     Incorporation,  By-laws and Board of Directors' resolutions relating to the
     transactions  contemplated  hereby.

          E.  The  Company shall have delivered to Buyer an executed copy of the
     Registration  Rights  Agreement  in  the form and substance satisfactory to
     Buyer.

     8.  GOVERNING  LAW;  MISCELLANEOUS.
         -------------------------------

          A.  GOVERNING  LAW.  THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND
              -------------
     CONSTRUED  IN  ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO
     AGREEMENTS  MADE  AND  TO  BE  PERFORMED  ENTIRELY WITH SUCH STATE, WITHOUT
     REGARD  TO  THE  PRINCIPLES  OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY
     SUBMIT  TO  THE  EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS
     LOCATED  IN  HOUSTON,  TEXAS WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS
     AGREEMENT,  THIS  AGREEMENT  ENTERED  INTO  IN  CONNECTION  HEREWITH OR THE
     TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE
     THE  DEFENSE  OF  AN  INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR
     PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY
     MAILED  BY  FIRST  CLASS  MAIL  SHALL  BE DEEMED IN EVERY RESPECT EFFECTIVE
     SERVICE  OF  PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING
     HEREIN  SHALL  AFFECT  EITHER  PARTY'S  RIGHT TO SERVE PROCESS IN ANY OTHER
     MANNER  PERMITTED  BY  LAW.  BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE
     JUDGMENT  IN  ANY  SUCH  SUIT  OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
     ENFORCED  IN  OTHER  JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
     LAWFUL  MANNER.  THE  PARTY  WHICH  DOES NOT PREVAIL IN ANY DISPUTE ARISING
     UNDER  THIS  AGREEMENT  SHALL  BE  RESPONSIBLE  FOR  ALL FEES AND EXPENSES,
     INCLUDING  ATTORNEYS'  FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION
     WITH  SUCH  DISPUTE.

                                        6

<PAGE>

          B.  COUNTERPARTS;  SIGNATURES  BY  FACSIMILE.  This  Agreement  may be
     executed  in  one  or  more  counterparts, each of which shall be deemed an
     original  but  all of which shall constitute one and the same agreement and
     shall become effective when counterparts have been signed by each party and
     delivered to the other party. This Agreement, once executed by a party, may
     be  delivered to the other party hereto by facsimile transmission of a copy
     of  this  Agreement  bearing  the signature of the party so delivering this
     Agreement.

          C.  HEADINGS.  The  headings  of this Agreement are for convenience of
              --------
     reference only and shall not form part of, or affect the interpretation of,
     this  Agreement.

          D.  SEVERABILITY. In the event that any provision of this Agreement is
              ------------
     invalid  or  enforceable  under any applicable statute or rule of law, then
     such  provision  shall  be  deemed  inoperative  to  the extent that it may
     conflict  therewith  and  shall  be  deemed  modified  to conform with such
     statute  or  rule  of  law. Any provision hereof which may prove invalid or
     unenforceable under any law shall not affect the validity or enforceability
     of  any  other  provision  hereof.

          E.  ENTIRE  AGREEMENT;  AMENDMENTS. This Agreement and the instruments
              ------------------------------
     referenced  herein  contain  the  entire  understanding of the parties with
     respect  to  the  matters  covered  herein  and  therein  and,  except  as
     specifically set forth herein or therein, neither the Company nor the Buyer
     makes any representation, warranty, covenant or undertaking with respect to
     such matters. No provision of this Agreement may be waived or amended other
     than  by  an  instrument  in writing signed by the party to be charged with
     enforcement.

          F.  NOTICES.  Any  notices required or permitted to be given under the
              -------
     terms  of  this  Agreement  shall  be  sent by certified or registered mail
     (return receipt requested) or delivered personally or by courier (including
     a  recognized  overnight  delivery  service)  or  by facsimile and shall be
     effective  five  days  after being placed in the mail, if mailed by regular
     United  States mail, or upon receipt, if delivered personally or by courier
     (including  a  recognized  overnight  delivery service) or by facsimile, in
     each case addressed to a party. The addresses for such communications shall
     be:

          If  to  the  Company:

                    New  Century  Energy  Corp.
                    5851  San  Felipe,  Suite  775
                    Houston,  Texas  77057
                    Attn:  Edward  R.  DeStefano,  President

          With  copy  (which  shall  not  constitute  notice)  to:

                    Mr.  David  M.  Loev
                    2777  Allen  Parkway,  Suite  1000
                    Houston,  Texas  77019

          If  to  the  Buyer:

                    At  the  addresses  specified  on the signature page hereof.

Each  party  shall  provide  notice to the other party of any change in address.

          G.  SUCCESSORS  AND  ASSIGNS. This Agreement shall be binding upon and
              ------------------------
     inure  to  the  benefit  of  the  parties and their successors and assigns.
     Neither  the Company nor Buyer shall assign this Agreement or any rights or
     obligations  hereunder  without  the  prior  written  consent of the other.
     Notwithstanding  the  foregoing,  subject to Section 2(f), Buyer may assign
     its rights hereunder to any person that purchases shares of Common Stock in
     a  private  transaction  from  Buyer or to any of its "affiliates," as that
     term  is  defined  under  the 1934 Act, without the consent of the Company.

          H.  THIRD  PARTY  BENEFICIARIES.  This  Agreement  is intended for the
              ---------------------------
     benefit of the parties hereto and their respective permitted successors and
     assigns,  and  is  not  for the benefit of, nor may any provision hereof be
     enforced  by,  any  other  person.

                                        7

<PAGE>

          I. SURVIVAL. The representations and warranties of the Company and the
             --------
     agreements  and covenants set forth in Sections 3, 4, 5 and 8 shall survive
     the  closing  hereunder  notwithstanding  any  due  diligence investigation
     conducted by or on behalf of the Buyer. The Company agrees to indemnify and
     hold  harmless  the  Buyer  and  all its officers, directors, employees and
     agents  for  loss or damage arising as a result of or related to any breach
     or  alleged breach by the Company of any of its representations, warranties
     and  covenants set forth in Sections 3 and 4 hereof or any of its covenants
     and  obligations under this Agreement, including advancement of expenses as
     they  are  incurred.

          J. PUBLICITY. The Company and the Buyer shall have the right to review
     a  reasonable  period  of  time before issuance of any press releases, SEC,
     over-the-counter  market  or  NASD  filings, or any other public statements
     with  respect  to  the transactions contemplated hereby; provided, however,
                                                              --------  --------
     that  (i)  the Company shall be entitled, without the prior approval of the
     Buyer,  to  make  any  press  release or SEC, Electronic Bulletin Board (or
     other  applicable  trading  market)  or  NASD  filings with respect to such
     transactions as is required by applicable law and regulations (although the
     Buyer  shall  be consulted by the Company in connection with any such press
     release  prior to its release and shall be provided with a copy thereof and
     be  given  an opportunity to comment thereon) and (ii) the Company will not
     disclose  any  material  nonpublic  information  to  Buyer  unless  such
     information  is disclosed to the public prior to or promptly following such
     disclosure  to  the  Buyer.

          K. FURTHER ASSURANCES. Each party shall do and perform, or cause to be
             ------------------
     done and performed, all such further acts and things, and shall execute and
     deliver all such other agreements, certificates, instruments and documents,
     as  the other party may reasonably request in order to carry out the intent
     and  accomplish  the purposes of this Agreement and the consummation of the
     transactions  contemplated  hereby.

          L. NO STRICT CONSTRUCTION. The language used in this Agreement will be
             ----------------------
     deemed  to  be  the  language chosen by the parties to express their mutual
     intent,  and  no  rules  of strict construction will be applied against any
     party.

          M.  REMEDIES.  The  Company  acknowledges  that  a breach by it of its
              --------
     obligations hereunder will cause irreparable harm to the Buyer by vitiating
     the intent and purpose of the transaction contemplated hereby. Accordingly,
     the  Company  acknowledges  that  the  remedy  at  law  for a breach of its
     obligations  under  this  Agreement  will  be inadequate and agrees, in the
     event  of a breach or threatened breach by the Company of the provisions of
     this  Agreement, that the Buyer shall be entitled, in addition to all other
     available  remedies  at  law or in equity, and in addition to the penalties
     assessable  herein, to an injunction or injunctions restraining, preventing
     or  curing  any  breach  of  this Agreement and to enforce specifically the
     terms and provisions hereof, without the necessity of showing economic loss
     and  without  any  bond  or  other  security  being  required.

                                        8

<PAGE>

          IN  WITNESS  WHEREOF,  the  Buyer  and  the  Company  have caused this
     Agreement  to  be  duly  executed  as  of  the  date  first  above written.

NEW  CENTURY  ENERGY  CORP.
COMPANY

By:    /s/ Edward R. DeStefano
    ----------------------------------------------------
    Edward R. DeStefano, Chief Executive Officer

BLACKCAP DIAMOND FIDELITY LP LLLP
(A DELAWARE LIMITED LIABILITY LIMITED PARTNERSHIP)
BY: HANOVER FINANCIAL MANAGEMENT, INC.
    (a Delaware corporation)
ITS: GENERAL PARTNER

By:  /s/ David D. Selmon Jr.
    ----------------------------------------------------
     David D. Selmon, Jr., President, Sole Officer
          and Original Limited Partner

Address:  P.O. Box 273
          League City, Texas 77574

Number of Shares Purchased:  214,000

OMEGA CAPITAL OPPORTUNITIES LP LLLP
(A DELAWARE LIMITED LIABILITY LIMITED PARTNERSHIP)
BY:  SACRSTON  TRADING  LTD
     (a Delaware corporation)
ITS:  GENERAL  PARTNER

By:  /s/ David D. Selmon
    ----------------------------------------------------
     David D. Selmon, President, Sole Officer
          and Original Limited Partner

Address:  3141 West Parkwood Avenue
          Suite 348 Pmb 230
          Friendswood, Texas 77546

Number of Shares Purchased:  642,000

<PAGE>

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