Document:

Exhibit 10.2

                          SECURITIES PURCHASE AGREEMENT

                            LAURUS MASTER FUND, LTD.

                                       AND

                           GULF COAST OIL CORPORATION

                              DATED:  JUNE 30, 2006

<PAGE>

                                TABLE OF CONTENTS
                                -----------------
                                                                           PAGE
                                                                           ----

1.     Agreement  to  Sell  and  Purchase                                     1

2.     Fees                                                                   1

3.     Closing,  Delivery  and  Payment                                       2
       3.1     Closing                                                        2
       3.2     Delivery                                                       2

4.     Representations  and  Warranties  of  the  Company                     2
       4.1     Organization,  Good  Standing  and  Qualification              2
       4.2     Subsidiaries                                                   3
       4.3     Capitalization;  Voting  Rights                                3
       4.4     Authorization;  Binding  Obligations                           4
       4.5     Liabilities                                                    4
       4.6     Agreements;  Action                                            4
       4.7     Obligations  to  Related  Parties                              6
       4.8     Changes                                                        6
       4.9     Title  to  Properties  and  Assets;  Liens,  Etc               7
       4.10    Intellectual  Property                                         8
       4.11    Compliance  with  Other  Instruments                           8
       4.12    Litigation                                                     9
       4.13    Tax  Returns  and  Payments                                    9
       4.14    Employees                                                      9
       4.15    Voting  Rights                                                 10
       4.16    Compliance  with  Laws;  Permits                               10
       4.17    Environmental  and  Safety  Laws                               10
       4.18    Valid  Offering                                                11
       4.19    Full  Disclosure                                               11
       4.20    Insurance                                                      11
       4.21    Dilution                                                       11
       4.22    Patriot  Act                                                   11
       4.23    ERISA                                                          12
       4.24    Registration  Rights             ERROR!  BOOKMARK  NOT  DEFINED.

5.     Representations  and  Warranties  of  the  Purchaser                   12
       5.1     Requisite  Power  and  Authority                               12
       5.2     Investment  Representations                                    13
       5.3     The  Purchaser  Bears  Economic  Risk                          13
       5.4     Acquisition  for  Own  Account                                 13
       5.5     The  Purchaser  Can  Protect  Its  Interest                    13
       5.6     Accredited  Investor                                           13
       5.7     Legends                                                        13

6.     Covenants  of  the  Company                                            14

<PAGE>

       6.1     Reporting  Requirements                                        14
       6.2     Use  of  Funds                                                 14
       6.3     Access  to  Facilities                                         15
       6.4     Taxes                                                          15
       6.5     Insurance                                                      16
       6.6     Intellectual  Property                                         17
       6.7     Properties                                                     17
       6.8     Confidentiality                                                17
       6.9     Required  Approvals                                            17
       6.10    Opinion                                                        18
       6.11    Margin  Stock                                                  18
       6.12    Financing  Right  of  First  Refusal                           18
       6.13    Authorization and Reservation of Shares     ERROR!  BOOKMARK  NOT
       6.14    Summaries;  Reports                                            19

7.     Covenants  of  the  Purchaser                                          19
       7.1     Confidentiality                                                19
       7.2     Limitation on Acquisition of Common Stock of the Company       19

8.     Covenants  of  the  Company  and  the Purchaser Regarding
       Indemnification                                                        20
       8.1     Company  Indemnification                                       20
       8.2     Purchaser's  Indemnification                                   20

9.     Miscellaneous                                                          21
       9.1     Governing Law, Jurisdiction and Waiver of Jury Trial           21
       9.2     Severability                                                   22
       9.3     Survival                                                       22
       9.4     Successors                                                     22
       9.5     Entire  Agreement;  Maximum  Interest                          22
       9.6     Amendment  and  Waiver                                         23
       9.7     Delays  or  Omissions                                          23
       9.8     Notices                                                        23
       9.9     Attorneys'  Fees                                               24
       9.10    Titles  and  Subtitles                                         24
       9.11    Facsimile  Signatures;  Counterparts                           24
       9.12    Broker's  Fees                                                 24
       9.13    Construction                                                   1

<PAGE>

                                LIST OF EXHIBITS

Form  of  Term  Note                                                   Exhibit A
Form  of  Opinion                                                      Exhibit B
Form  of  Escrow Agreement                                             Exhibit C

                                LIST OF SCHEDULES

Schedule 4.2     Subsidiaries
Schedule 4.3     Capitalization
Schedule 4.6     Agreements
Schedule 4.7     Obligations to Related Parties
Schedule 4.9     Title to Properties and Assets, Liens, Etc.
Schedule 4.12    Litigation
Schedule 4.13    Tax Returns and Payments
Schedule 4.14    Employees
Schedule 4.15    Voting Rights
Schedule 4.17    Environmental
Schedule 6.9     Required Approvals
Schedule 9.12    Brokers

<PAGE>

                           SECURITIES PURCHASE AGREEMENT

     THIS  SECURITIES  PURCHASE AGREEMENT (this "Agreement") is made and entered
into as of June 30, 2006, by and between GULF COAST OIL CORPORATION , a Delaware
corporation  (the  "Company"),  and  LAURUS  MASTER FUND, LTD., a Cayman Islands
company  (the  "Purchaser").

                                    RECITALS

     WHEREAS,  the Company has authorized the sale to the Purchaser of a Secured
Term  Note in the aggregate principal amount of Five Million ($5,000,000) in the
form  of Exhibit A hereto (as amended, modified and/or supplemented from time to
         ---------
time,  the  "Note"  or  the  "Securities");

     WHEREAS,  the  Purchaser  desires  to  purchase  the  Note on the terms and
conditions  set  forth  herein;  and

     WHEREAS, the Company desires to issue and sell the Note to the Purchaser on
the  terms  and  conditions  set  forth  herein.

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
promises,  representations,  warranties  and covenants hereinafter set forth and
for  other good and valuable consideration, the receipt and sufficiency of which
are  hereby  acknowledged,  the  parties  hereto  agree  as  follows:

     1. Agreement to Sell and Purchase. Pursuant to the terms and conditions set
        ------------------------------
forth  in  this  Agreement,  on  the Closing Date (as defined in Section 3), the
Company  shall  sell to the Purchaser, and the Purchaser shall purchase from the
Company,  the  Note.  The sale of the Note on the Closing Date shall be known as
the  "Offering."  The  Note  will mature on the Maturity Date (as defined in the
Note).

     2.  Fees.  On  the  Closing  Date:
         ----

          (a)  Subject to the terms of Section 2(c) below, the Company shall pay
     to  Laurus Capital Management, LLC, the investment manager of the Purchaser
     ("LCM"), a non-refundable servicing payment in an amount equal to three and
     one-half percent (3.50%) of the aggregate principal amount of the Note. The
     foregoing  payment  is  referred  to herein as the "Servicing Payment." The
     parties  acknowledge that the Servicing Payment is a reasonable estimate of
     the  expenses that LCM will incur in monitoring and servicing the Note, and
     the  Servicing  Payment  is intended to enable LCM to defray such expenses.

          (b)  The  Company  shall  reimburse  the  Purchaser for its reasonable
     expenses  (including  legal  fees and expenses) incurred in connection with
     entering  into  this  Agreement  and the Related Agreements (as hereinafter

                                     -1-
<PAGE>

     defined),  and  expenses  incurred  in  connection with the Purchaser's due
     diligence review of the Company and its Subsidiaries (as defined in Section
     4.2)  and  all  related  matters.  Amounts  required  to be paid under this
     Section  2(b)  will  be  paid  on  the  Closing  Date.

          (c)  The  Servicing  Payment  and  the  expenses  referred  to  in the
     preceding clause (b) (net of deposits previously paid by the Company) shall
     be  paid  at closing out of funds held pursuant to the Escrow Agreement (as
     defined  below)  and  a  disbursement  letter  (the "Disbursement Letter").

     3.  Closing,  Delivery  and  Payment.
         --------------------------------

          3.1  Closing.  Subject to the terms and conditions herein, the closing
               -------
     of  the  transactions contemplated hereby (the "Closing"), shall take place
     on  the date hereof, at such time or place as the Company and the Purchaser
     may  mutually  agree  (such date is hereinafter referred to as the "Closing
     Date").

          3.2  Delivery. Pursuant to the Escrow Agreement, at the Closing on the
               --------
     Closing  Date,  the  Company  will  deliver  to  the Purchaser, among other
     things,  the  Note,  and  the  Purchaser will deliver to the Company, among
     other things, the amounts set forth in the Disbursement Letter by certified
     funds  or  wire  transfer.  The Company hereby acknowledges and agrees that
     Purchaser's obligation to purchase the Note from the Company on the Closing
     Date  shall be contingent upon the satisfaction (or waiver by the Purchaser
     in  its  sole discretion) of the items and matters set forth in the closing
     checklist  provided  by  the  Purchaser  to  the Company on or prior to the
     Closing  Date.

     4.  Representations  and  Warranties  of  the  Company.  The Company hereby
         --------------------------------------------------
represents  and  warrants  to  the  Purchaser  as  follows:

          4.1 Organization, Good Standing and Qualification. Each of New Century
              ---------------------------------------------
     Energy  Corp. (the "Parent"), the Company and each of its Subsidiaries is a
     corporation,  partnership or limited liability company, as the case may be,
     duly organized, validly existing and in good standing under the laws of its
     jurisdiction  of  organization. Each of the Parent, the Company and each of
     its  Subsidiaries  has  the  corporate,  limited  liability  company  or
     partnership, as the case may be, power and authority to own and operate its
     properties and assets and, insofar as it is or shall be a party thereto, to
     (1)  execute  and deliver (i) this Agreement, (ii) the Note to be issued in
     connection  with  this  Agreement, (iii) the Amended and Restated Mortgage,
     Deed  of  Trust,  Security Agreement, Financing Statement and Assignment of
     Production  effective  as of April 26, 2006 made by the Company in favor of
     the Purchaser (as amended, modified and/or supplemented from time to time),
     (iv)  the  Reaffirmation  and  Ratification  Agreement dated as of the date
     hereof  made by the Company in favor of the Purchaser (as amended, modified
     and/or  supplemented  from  time  to  time),  (v)  the  Reaffirmation  and
     Ratification  Agreement  dated as of the date hereof made by the Parent and
     Century  Resources,  Inc.  in  favor of the Purchaser (as amended, modified
     and/or  supplemented  from  time  to time), (vi) the Funds Escrow Agreement
     dated as of the date hereof among the Company, the Purchaser and the escrow
     agent  referred  to  therein, substantially in the form of Exhibit C hereto
                                                                ---------
     (as  amended,  modified  and/or supplemented from time to time, the "Escrow
     Agreement")  and  (vii)  all  other  documents,  instruments and agreements

                                     -2-
<PAGE>

     entered  into  in  connection with the transactions contemplated hereby and
     thereby  (the  preceding  clauses  (ii)  through  (vii),  collectively, the
     "Related  Agreements");  (2) issue and sell the Note; and (3) carry out the
     provisions of this Agreement and the Related Agreements and to carry on its
     business  as  presently conducted. Each of the Parent, the Company and each
     of  its Subsidiaries is duly qualified and is authorized to do business and
     is  in  good  standing  as  a  foreign  corporation, partnership or limited
     liability  company,  as  the case may be, in all jurisdictions in which the
     nature  or location of its activities and of its properties (both owned and
     leased)  makes such qualification necessary, except for those jurisdictions
     in  which  failure to do so has not, or could not reasonably be expected to
     have,  individually  or  in the aggregate, a material adverse effect on the
     business,  assets,  liabilities,  condition  (financial  or  otherwise),
     properties,  operations  or  prospects  of  the Parent, the Company and its
     Subsidiaries,  taken  individually  and  as  a  whole  (a "Material Adverse
     Effect").

          4.2  Subsidiaries.  Each  direct and indirect Subsidiary of the Parent
               ------------
     and  Company,  the  direct  owner  of  such  Subsidiary  and its percentage
     ownership  thereof,  is  set forth on Schedule 4.2. For the purpose of this
     Agreement,  a  "Subsidiary" of any person or entity means (i) a corporation
     or  other  entity whose shares of stock or other ownership interests having
     ordinary voting power (other than stock or other ownership interests having
     such  power  only  by  reason of the happening of a contingency) to elect a
     majority of the directors of such corporation, or other persons or entities
     performing similar functions for such person or entity, are owned, directly
     or  indirectly,  by  such  person  or entity or (ii) a corporation or other
     entity  in  which  such person or entity owns, directly or indirectly, more
     than  50%  of  the  equity  interests  at  such  time.

          4.3  Capitalization;  Voting  Rights.
               -------------------------------

               (a)  The  authorized capital stock of the Company, as of the date
          hereof,  consists  of 1,000,000 shares, all of which are shares of the
          Company's  Common  Stock,  par  value  $.001  per  share  (the "Common
          Stock"),  and  1,000  shares  of which are issued and outstanding. The
          authorized, issued and outstanding capital stock of each Subsidiary of
          the  Company  is  set  forth  on  Schedule  4.3.

               (b)  Except  as  disclosed  on  Schedule 4.3, other than: (i) the
          shares  reserved  for issuance under the Company's stock option plans;
          and  (ii)  shares  which may be granted pursuant to this Agreement and
          the  Related  Agreements,  there are no outstanding options, warrants,
          rights  (including conversion or preemptive rights and rights of first
          refusal),  proxy  or  stockholder  agreements,  or  arrangements  or
          agreements  of  any  kind  for  the  purchase  or acquisition from the
          Company of any of its securities. Except as disclosed on Schedule 4.3,
          neither  the offer, issuance or sale of the Note, nor the consummation
          of  any transaction contemplated hereby will result in a change in the
          price  or  number  of any securities of the Company outstanding, under
          anti-dilution  or  other  similar provisions contained in or affecting
          any  such  securities.

               (c)  All  issued  and  outstanding shares of the Company's Common
          Stock:  (i) have been duly authorized and validly issued and are fully
          paid  and  nonassessable;  and (ii) were issued in compliance with all
          applicable  state  and  federal  laws  concerning  the  issuance  of
          securities.

                                     -3-
<PAGE>

               (d)  The  rights, preferences, privileges and restrictions of the
          shares  of  the  Company's Common Stock are as stated in the Company's
          Certificate  of  Incorporation  (the  "Charter").  When  issued  in
          compliance  with  the  provisions  of this Agreement and the Company's
          Charter,  the  Securities  will  be  validly  issued,  fully  paid and
          nonassessable,  and  will  be  free  of  any  liens  or  encumbrances;
          provided,  however, that the Securities may be subject to restrictions
          on  transfer  under  state and/or federal securities laws as set forth
          herein or as otherwise required by such laws at the time a transfer is
          proposed.

          4.4  Authorization; Binding Obligations. All corporate, partnership or
               ----------------------------------
     limited  liability  company,  as the case may be, action on the part of the
     Parent,  Company  and  each of its Subsidiaries (including their respective
     officers  and  directors) necessary for the authorization of this Agreement
     and  the  Related  Agreements,  the  performance  of all obligations of the
     Parent,  Company and its Subsidiaries hereunder and under the other Related
     Agreements  at  the  Closing  and,  the  authorization,  sale, issuance and
     delivery  of the Note has been taken or will be taken prior to the Closing.
     This  Agreement and the Related Agreements, when executed and delivered and
     to  the extent it is a party thereto, will be valid and binding obligations
     of  each  of  the Parent, Company and each of its Subsidiaries, enforceable
     against  each such person or entity in accordance with their terms, except:

               (a)  as  limited  by  applicable  bankruptcy,  insolvency,
          reorganization,  moratorium  or  other  laws  of  general  application
          affecting  enforcement  of  creditors'  rights;  and

               (b)  general  principles of equity that restrict the availability
          of  equitable  or  legal  remedies.

     The  sale  of  the  Note  is  not and will not be subject to any preemptive
     rights  or  rights  of  first refusal that have not been properly waived or
     complied  with.

          4.5  Liabilities.  Neither the Company nor any of its Subsidiaries has
               -----------
     any liabilities, except current liabilities incurred in the ordinary course
     of  business.

          4.6  Agreements;  Action.  Except  as  set  forth  on  Schedule  4.6:
               -------------------

               (a)  there  are  no  agreements,  understandings,  instruments,
          contracts,  proposed transactions, judgments, orders, writs or decrees
          to which the Company or any of its Subsidiaries is a party or by which
          it  is  bound  which  may  involve:  (i)  obligations  (contingent  or
          otherwise)  of, or payments to, the Company or any of its Subsidiaries
          in  excess  of $50,000 (other than obligations of, or payments to, the
          Company  or  any  of  its  Subsidiaries  arising from purchase or sale
          agreements  entered  into in the ordinary course of business); or (ii)
          the  transfer  or  license  of  any patent, copyright, trade secret or
          other  proprietary  right  to  or  from  the  Company  or  any  of its
          Subsidiaries  (other  than  licenses arising from the purchase of "off
          the  shelf"  or  other  standard  products);  or  (iii)  provisions
          restricting  the  development,  manufacture  or  distribution  of  the
          Company's  or  any  of  its Subsidiaries products or services; or (iv)
          indemnification by the Company or any of its Subsidiaries with respect
          to  infringements  of  proprietary  rights.

                                     -4-
<PAGE>

               (b)  Neither  the  Company  nor  any of its Subsidiaries has: (i)
          declared or paid any dividends, or authorized or made any distribution
          upon or with respect to any class or series of its capital stock; (ii)
          incurred  any indebtedness for money borrowed or any other liabilities
          (other  than ordinary course obligations and indebtedness owing to the
          Purchaser)  individually  in  excess  of  $50,000  or,  in the case of
          indebtedness  and/or  liabilities  individually  less than $50,000, in
          excess  of $100,000 in the aggregate; (iii) made any loans or advances
          to  any  person  or  entity  not  in  excess,  individually  or in the
          aggregate, of $100,000, other than ordinary course advances for travel
          expenses;  or (iv) sold, exchanged or otherwise disposed of any of its
          assets or rights, other than the sale of its inventory in the ordinary
          course  of  business.

               (c)  For  the  purposes  of  subsections  (a)  and (b) above, all
          indebtedness,  liabilities,  agreements,  understandings, instruments,
          contracts  and  proposed  transactions  involving  the  same person or
          entity (including persons or entities the Company or any Subsidiary of
          the  Company  has reason to believe are affiliated therewith) shall be
          aggregated  for  the  purpose of meeting the individual minimum dollar
          amounts  of  such  subsections.

               (d)  The  Company  makes  and keeps books, records, and accounts,
          that,  in  reasonable  detail,  accurately  and  fairly  reflect  the
          transactions  and  dispositions  of  the Company's assets. The Company
          maintains  internal  control  over  financial  reporting  ("Financial
          Reporting  Controls")  designed  by,  or under the supervision of, the
          Company's  principal  executive  and principal financial officers, and
          effected  by  the  Company's board of directors, management, and other
          personnel,  to  provide reasonable assurance regarding the reliability
          of financial reporting and the preparation of financial statements for
          external  purposes  in  accordance  with generally accepted accounting
          principles  ("GAAP"),  including  that:

                    (i)  transactions  are  executed  in  accordance  with
               management's  general  or  specific  authorization;

                    (ii)  unauthorized  acquisition,  use, or disposition of the
               Company's  assets  that  could  have  a  material  effect  on the
               financial  statements  are  prevented  or  timely  detected;

                    (iii)  transactions  are  recorded  as  necessary  to permit
               preparation  of financial statements in accordance with GAAP, and
               that  the Company's receipts and expenditures are being made only
               in accordance with authorizations of the Company's management and
               board  of  directors;

                    (iv)  transactions  are  recorded  as  necessary to maintain
               accountability  for  assets;  and

                    (v)  the recorded accountability for assets is compared with
               the  existing  assets  at  reasonable  intervals, and appropriate
               action  is  taken  with  respect  to  any  differences.

                                     -5-
<PAGE>

          4.7  Obligations  to  Related Parties. Except as set forth on Schedule
               --------------------------------
     4.7,  there are no obligations of the Company or any of its Subsidiaries to
     officers, directors, stockholders or employees of the Company or any of its
     Subsidiaries  other  than:

               (a)  for  payment  of  salary for services rendered and for bonus
          payments;

               (b)  reimbursement  for reasonable expenses incurred on behalf of
          the  Company  and  its  Subsidiaries;

               (c) for other standard employee benefits made generally available
          to  all employees (including stock option agreements outstanding under
          any  stock  option  plan  approved  by  the  Board of Directors of the
          Company  and  each  Subsidiary  of  the  Company,  as applicable); and

               (d)  obligations  listed  in  the  Company's  and  each  of  its
          Subsidiary's  financial  statements.

     Except  as  described  above  or  set  forth  on  Schedule 4.7, none of the
     officers,  directors  or,  to  the  best  of  the  Company's knowledge, key
     employees  or stockholders of the Company or any of its Subsidiaries or any
     members  of their immediate families, are indebted to the Company or any of
     its Subsidiaries, individually or in the aggregate, in excess of $50,000 or
     have  any  direct or indirect ownership interest in any firm or corporation
     with  which  the  Company  or any of its Subsidiaries is affiliated or with
     which  the  Company or any of its Subsidiaries has a business relationship,
     or  any  firm  or corporation which competes with the Company or any of its
     Subsidiaries,  other  than passive investments in publicly traded companies
     (representing less than one percent (1%) of such company) which may compete
     with  the Company or any of its Subsidiaries. Except as described above, no
     officer, director or stockholder of the Company or any of its Subsidiaries,
     or  any  member  of  their  immediate families, is, directly or indirectly,
     interested  in  any  material  contract  with  the  Company  or  any of its
     Subsidiaries and no agreements, understandings or proposed transactions are
     contemplated  between  the  Company or any of its Subsidiaries and any such
     person. Except as set forth on Schedule 4.7, neither the Company nor any of
     its  Subsidiaries  is  a guarantor or indemnitor of any indebtedness of any
     other  person  or  entity.

          4.8  Changes. Except as disclosed in any Schedule to this Agreement or
               -------
     to  any  of  the  Related  Agreements,  there  has  not  been:

               (a)  any  change  in the business, assets, liabilities, condition
          (financial  or  otherwise), properties, operations or prospects of the
          Company  or  any  of  its  Subsidiaries,  which individually or in the
          aggregate  has  had,  or  could  reasonably  be  expected  to  have,
          individually  or  in  the  aggregate,  a  Material  Adverse  Effect;

               (b)  any  resignation or termination of any officer, key employee
          or  group  of  employees  of  the  Company or any of its Subsidiaries;

               (c)  any  material  change,  except  in  the  ordinary  course of
          business,  in  the contingent obligations of the Company or any of its
          Subsidiaries  by  way of guaranty, endorsement, indemnity, warranty or
          otherwise;

                                     -6-
<PAGE>

               (d)  any  damage,  destruction or loss, whether or not covered by
          insurance,  which  has  had,  or could reasonably be expected to have,
          individually  or  in  the  aggregate,  a  Material  Adverse  Effect;

               (e)  any  waiver  by  the Company or any of its Subsidiaries of a
          valuable  right  or  of  a  material  debt  owed  to  it;

               (f)  any  direct  or indirect loans made by the Company or any of
          its  Subsidiaries to any stockholder, employee, officer or director of
          the  Company  or  any of its Subsidiaries, other than advances made in
          the  ordinary  course  of  business;

               (g)  any  material  change  in  any  compensation  arrangement or
          agreement  with  any employee, officer, director or stockholder of the
          Company  or  any  of  its  Subsidiaries;

               (h)  any  declaration  or  payment  of  any  dividend  or  other
          distribution  of the assets of the Company or any of its Subsidiaries;

               (i) any labor organization activity related to the Company or any
          of  its  Subsidiaries;

               (j)  any  debt,  obligation  or  liability  incurred,  assumed or
          guaranteed by the Company or any of its Subsidiaries, except those for
          immaterial  amounts  and  for  current  liabilities  incurred  in  the
          ordinary  course  of  business;

               (k)  any sale, assignment or transfer of any patents, trademarks,
          copyrights,  trade  secrets  or  other  intangible assets owned by the
          Company  or  any  of  its  Subsidiaries;

               (l)  any change in any material agreement to which the Company or
          any  of  its Subsidiaries is a party or by which either the Company or
          any  of  its Subsidiaries is bound which either individually or in the
          aggregate  has  had,  or  could  reasonably  be  expected  to  have,
          individually  or  in  the  aggregate,  a  Material  Adverse  Effect;

               (m)  any  other  event or condition of any character that, either
          individually  or  in  the  aggregate,  has had, or could reasonably be
          expected to have, individually or in the aggregate, a Material Adverse
          Effect;  or

               (n)  any  arrangement  or commitment by the Company or any of its
          Subsidiaries to do any of the acts described in subsection (a) through
          (m)  above.

          4.9 Title to Properties and Assets; Liens, Etc. Except as set forth on
              ------------------------------------------
     Schedule 4.9, each of the Company and each of its Subsidiaries has good and
     marketable  title  to  its  properties  and  assets,  and good title to its
     leasehold  interests,  in  each  case subject to no mortgage, pledge, lien,
     lease,  encumbrance  or  charge,  other  than:

               (a)  those  resulting  from  taxes  which  have  not  yet  become
          delinquent;

               (b)  minor liens and encumbrances which do not materially detract
          from  the  value  of the property subject thereto or materially impair

                                     -7-
<PAGE>

          the  operations  of the Company or any of its Subsidiaries, so long as
          in  each  such case, such liens and encumbrances have no effect on the
          lien  priority  of  the  Purchaser  in  such  property;  and

               (c)  those  that  have otherwise arisen in the ordinary course of
          business,  so  long as they have no effect on the lien priority of the
          Purchaser  therein.

All  facilities,  machinery,  equipment, fixtures, vehicles and other properties
owned,  leased or used by the Company and its Subsidiaries are in good operating
condition  and  repair  and  are  reasonably fit and usable for the purposes for
which they are being used.  Except as set forth on Schedule 4.9, the Company and
its  Subsidiaries  are  in  compliance  with all material terms of each lease to
which  it  is  a  party  or  is  otherwise  bound.

          4.10  Intellectual  Property.
                ----------------------

               (a)  Each  of  the  Company  and each of its Subsidiaries owns or
          possesses  sufficient legal rights to all patents, trademarks, service
          marks,  trade  names, copyrights, trade secrets, licenses, information
          and  other proprietary rights and processes necessary for its business
          as  now  conducted  and,  to  the  Company's  knowledge,  as presently
          proposed  to  be  conducted (the "Intellectual Property"), without any
          known  infringement  of the rights of others. There are no outstanding
          options,  licenses or agreements of any kind relating to the foregoing
          proprietary  rights,  nor  is  the  Company or any of its Subsidiaries
          bound by or a party to any options, licenses or agreements of any kind
          with  respect  to the patents, trademarks, service marks, trade names,
          copyrights, trade secrets, licenses, information and other proprietary
          rights  and  processes  of  any other person or entity other than such
          licenses or agreements arising from the purchase of "off the shelf" or
          standard  products.

               (b)  Neither the Company nor any of its Subsidiaries has received
          any  communications  alleging  that  the  Company  or  any  of  its
          Subsidiaries  has  violated  any  of  the patents, trademarks, service
          marks,  trade  names, copyrights or trade secrets or other proprietary
          rights of any other person or entity, nor is the Company or any of its
          Subsidiaries  aware  of  any  basis  therefor.

               (c)  The  Company  does not believe it is or will be necessary to
          utilize  any  inventions,  trade secrets or proprietary information of
          any  of its employees made prior to their employment by the Company or
          any  of  its  Subsidiaries,  except  for  inventions, trade secrets or
          proprietary  information  that  have  been  rightfully assigned to the
          Company  or  any  of  its  Subsidiaries.

          4.11  Compliance  with  Other Instruments. Neither the Parent, Company
                -----------------------------------
     nor  any  of its Subsidiaries is in violation or default of (x) any term of
     its  Charter or Bylaws, or (y) any provision of any indebtedness, mortgage,
     indenture,  contract,  agreement  or  instrument to which it is party or by
     which  it  is  bound  or  of  any  judgment,  decree,  order or writ, which
     violation  or  default,  in  the case of this clause (y), has had, or could
     reasonably  be expected to have, either individually or in the aggregate, a
     Material  Adverse  Effect.  The  execution, delivery and performance of and

                                     -8-
<PAGE>

     compliance  with this Agreement and the Related Agreements to which it is a
     party,  and  the  issuance  and  sale  of  the Note by the Company pursuant
     hereto,  will not, with or without the passage of time or giving of notice,
     result in any such material violation, or be in conflict with or constitute
     a  default  under  any such term or provision, or result in the creation of
     any  mortgage,  pledge,  lien,  encumbrance  or  charge  upon  any  of  the
     properties  or  assets of the Parent, Company or any of its Subsidiaries or
     the  suspension,  revocation,  impairment,  forfeiture or nonrenewal of any
     permit,  license, authorization or approval applicable to the Parent or the
     Company,  its  business  or  operations or any of its assets or properties.

          4.12 Litigation. Except as set forth on Schedule 4.12 hereto, there is
               ----------
     no  action,  suit, proceeding or investigation pending or, to the Company's
     knowledge,  currently  threatened against the Parent, Company or any of its
     Subsidiaries  that  prevents the Parent, Company or any of its Subsidiaries
     from  entering into this Agreement or the other Related Agreements, or from
     consummating  the transactions contemplated hereby or thereby, or which has
     had, or could reasonably be expected to have, either individually or in the
     aggregate,  a  Material  Adverse Effect or any change in the current equity
     ownership  of  the  Parent,  Company or any of its Subsidiaries, nor is the
     Company  aware  that  there  is  any  basis to assert any of the foregoing.
     Neither  the  Parent,  Company nor any of its Subsidiaries is a party to or
     subject  to  the  provisions  of  any  order, writ, injunction, judgment or
     decree  of  any  court or government agency or instrumentality. There is no
     action,  suit, proceeding or investigation by the Parent, Company or any of
     its  Subsidiaries  currently pending or which the Parent, Company or any of
     its  Subsidiaries  intends  to  initiate.

          4.13  Tax  Returns  and  Payments. Each of the Company and each of its
                ---------------------------
     Subsidiaries  has  timely  filed all tax returns (federal, state and local)
     required  to  be filed by it. All taxes shown to be due and payable on such
     returns,  any  assessments  imposed, and all other taxes due and payable by
     the  Company or any of its Subsidiaries on or before the Closing, have been
     paid  or  will  be paid prior to the time they become delinquent. Except as
     set forth on Schedule 4.13, neither the Company nor any of its Subsidiaries
     has  been  advised:

               (a)  that  any of its returns, federal, state or other, have been
          or  are  being  audited  as  of  the  date  hereof;  or

               (b)  of  any adjustment, deficiency, assessment or court decision
          in  respect  of  its  federal,  state  or  other  taxes.

     The  Company  has  no  knowledge  of  any  liability  for  any  tax  to  be
     imposed upon its properties or assets as of the date of this Agreement that
     is  not  adequately  provided  for.

          4.14  Employees.  Except  as  set  forth on Schedule 4.14, neither the
                ---------
     Company  nor  any  of  its  Subsidiaries  has  any  collective  bargaining
     agreements  with  any  of its employees. There is no labor union organizing
     activity pending or, to the Company's knowledge, threatened with respect to
     the  Company  or  any  of its Subsidiaries. Except as disclosed on Schedule
     4.14,  neither  the  Company  nor  any of its Subsidiaries is a party to or
     bound by any currently effective employment contract, deferred compensation
     arrangement,  bonus  plan,  incentive plan, profit sharing plan, retirement
     agreement  or  other  employee  compensation  plan  or  agreement.  To  the
     Company's knowledge, no employee of the Company or any of its Subsidiaries,
     nor  any  consultant  with  whom the Company or any of its Subsidiaries has
     contracted,  is  in  violation  of  any  term  of  any employment contract,

                                     -9-
<PAGE>

     proprietary  information  agreement  or any other agreement relating to the
     right  of  any  such individual to be employed by, or to contract with, the
     Company or any of its Subsidiaries because of the nature of the business to
     be  conducted  by  the  Company  or  any  of  its  Subsidiaries; and to the
     Company's  knowledge  the  continued  employment  by  the  Company  and its
     Subsidiaries  of  their  present  employees,  and  the  performance  of the
     Company's and its Subsidiaries' contracts with its independent contractors,
     will  not  result in any such violation. Neither the Company nor any of its
     Subsidiaries  is  aware  that  any  of its employees is obligated under any
     contract  (including  licenses,  covenants or commitments of any nature) or
     other  agreement,  or subject to any judgment, decree or order of any court
     or  administrative  agency  that  would  interfere with their duties to the
     Company  or  any  of  its  Subsidiaries. Neither the Company nor any of its
     Subsidiaries  has  received any notice alleging that any such violation has
     occurred.  Except  for  employees  who  have a current effective employment
     agreement  with  the Company or any of its Subsidiaries, no employee of the
     Company  or any of its Subsidiaries has been granted the right to continued
     employment  by  the  Company  or any of its Subsidiaries or to any material
     compensation following termination of employment with the Company or any of
     its  Subsidiaries. Except as set forth on Schedule 4.14, the Company is not
     aware  that  any  officer,  key  employee  or group of employees intends to
     terminate  his,  her  or  their  employment  with the Company or any of its
     Subsidiaries,  nor  does  the  Company  or  any  of its Subsidiaries have a
     present  intention to terminate the employment of any officer, key employee
     or  group  of  employees.

          4.15  Voting  Rights.  Except  as  set  forth on Schedule 4.15, to the
                --------------
     Company's  knowledge,  no  stockholder  of  the  Company  or  any  of  its
     Subsidiaries  has  entered into any agreement with respect to the voting of
     equity  securities  of  the  Company  or  any  of  its  Subsidiaries.

          4.16  Compliance  with  Laws; Permits. Neither the Parent, Company nor
                -------------------------------
     any  of  its  Subsidiaries is in violation of any provision of the Sarbanes
     Oxley  Act  of  2002  applicable  statute,  rule,  regulation,  order  or
     restriction of any domestic or foreign government or any instrumentality or
     agency  thereof  in respect of the conduct of its business or the ownership
     of  its  properties which has had, or could reasonably be expected to have,
     either  individually  or  in  the  aggregate, a Material Adverse Effect. No
     governmental orders, permissions, consents, approvals or authorizations are
     required  to  be obtained and no registrations or declarations are required
     to be filed in connection with the execution and delivery of this Agreement
     or  any  other Related Agreement and the issuance of any of the Securities,
     except  such  as  have  been  duly  and  validly obtained or filed, or with
     respect  to  any  filings  that  must be made after the Closing, as will be
     filed  in a timely manner. Each of the Company and its Subsidiaries has all
     material  franchises, permits, licenses and any similar authority necessary
     for  the  conduct of its business as now being conducted by it, the lack of
     which  could,  either  individually  or  in  the  aggregate,  reasonably be
     expected  to  have  a  Material  Adverse  Effect.

          4.17  Environmental  and  Safety Laws. Neither the Parent, Company nor
                -------------------------------
     any  of  its Subsidiaries is in violation of any applicable statute, law or
     regulation  relating  to the environment or occupational health and safety,
     and  to  its knowledge, no material expenditures are or will be required in
     order  to  comply with any such existing statute, law or regulation. Except
     as  set  forth  on Schedule 4.17, no Hazardous Materials (as defined below)
     are  used  or have been used, stored, or disposed of by the Parent, Company

                                      -10-
<PAGE>

     or  any  of  its  Subsidiaries or, to the Company's knowledge, by any other
     person  or  entity  on  any  property  owned, leased or used by the Parent,
     Company  or  any  of  its  Subsidiaries.  For the purposes of the preceding
     sentence,  "Hazardous  Materials"  shall  mean:

               (a)  materials  which  are  listed  or  otherwise  defined  as
          "hazardous"  or  "toxic"  under  any  applicable local, state, federal
          and/or  foreign  laws and regulations that govern the existence and/or
          remedy of contamination on property, the protection of the environment
          from  contamination,  the  control  of  hazardous  wastes,  or  other
          activities  involving  hazardous  substances,  including  building
          materials;  or

               (b)  any  petroleum  products  or  nuclear  materials.

          4.18  Valid Offering. Assuming the accuracy of the representations and
                --------------
     warranties  of  the  Purchaser contained in this Agreement, the offer, sale
     and  issuance  of  the  Securities  will  be  exempt  from the registration
     requirements  of  the  Securities  Act of 1933, as amended (the "Securities
     Act"),  and  will  have  been  registered  or qualified (or are exempt from
     registration  and  qualification)  under  the  registration,  permit  or
     qualification  requirements  of  all  applicable  state  securities  laws.

          4.19 Full Disclosure. Each of the Company and each of its Subsidiaries
               ---------------
     has  provided the Purchaser with all information requested by the Purchaser
     in  connection  with  its  decision  to  purchase  the  Note, including all
     information  the  Company  and  its  Subsidiaries  believe  is  reasonably
     necessary  to  make  such  investment decision. Neither this Agreement, the
     Related  Agreements,  the exhibits and schedules hereto and thereto nor any
     other  document  delivered  by  the  Company  or any of its Subsidiaries to
     Purchaser or its attorneys or agents in connection herewith or therewith or
     with  the  transactions  contemplated hereby or thereby, contain any untrue
     statement of a material fact nor omit to state a material fact necessary in
     order  to  make the statements contained herein or therein, in light of the
     circumstances  in  which  they  are  made,  not  misleading.  Any financial
     projections and other estimates provided to the Purchaser by the Company or
     any  of  its Subsidiaries were based on the Company's and its Subsidiaries'
     experience  in  the  industry  and on assumptions of fact and opinion as to
     future  events which the Company or any of its Subsidiaries, at the date of
     the  issuance  of such projections or estimates, believed to be reasonable.

          4.20  Insurance.  Each of the Company and each of its Subsidiaries has
                ---------
     general commercial, product liability, fire and casualty insurance policies
     with  coverages  which  the  Company  believes  are customary for companies
     similarly  situated  to  the  Company  and  its Subsidiaries in the same or
     similar  business.

          4.21 Patriot Act. The Company certifies that, to the best of Company's
               -----------
     knowledge, neither the Parent, Company nor any of its Subsidiaries has been
     designated,  nor  is  or  shall  be  owned  or  controlled, by a "suspected
     terrorist"  as  defined  in  Executive  Order  13224.  The  Company  hereby
     acknowledges  that  the  Purchaser seeks to comply with all applicable laws
     concerning money laundering and related activities. In furtherance of those
     efforts,  the  Company  hereby represents, warrants and covenants that: (i)
     none  of  the  cash  or  property  that  the  Parent, Company or any of its
     Subsidiaries will pay or will contribute to the Purchaser has been or shall
     be  derived from, or related to, any activity that is deemed criminal under
     United  States  law;  and  (ii)  no  contribution or payment by the Parent,

                                      -11-
<PAGE>

     Company  or any of its Subsidiaries or to the Purchaser, to the extent that
     they  are within the Company's and/or its Subsidiaries' and/or the Parent's
     control  shall  cause the Purchaser to be in violation of the United States
     Bank  Secrecy Act, the United States International Money Laundering Control
     Act  of  1986 or the United States International Money Laundering Abatement
     and Anti-Terrorist Financing Act of 2001. The Company shall promptly notify
     the  Purchaser  if  any  of  these representations, warranties or covenants
     ceases  to  be  true  and  accurate  regarding  the  Company,  any  of  its
     Subsidiaries  or  the  Parent.  The Company shall provide the Purchaser all
     additional  information  regarding  the Company, any of its Subsidiaries or
     the  Parent  that  the  Purchaser  deems  necessary or convenient to ensure
     compliance with all applicable laws concerning money laundering and similar
     activities.  The  Company  understands and agrees that if at any time it is
     discovered  that  any  of  the  foregoing  representations,  warranties  or
     covenants  are  incorrect,  or  if  otherwise required by applicable law or
     regulation related to money laundering or similar activities, the Purchaser
     may  undertake appropriate actions to ensure compliance with applicable law
     or  regulation,  including but not limited to segregation and/or redemption
     of  the  Purchaser's  investment  in  the  Company.  The  Company  further
     understands  that  the Purchaser may release confidential information about
     the  Company,  its  Subsidiaries  and  the  Parent  and, if applicable, any
     underlying  beneficial  owners,  to proper authorities if the Purchaser, in
     its  sole  discretion,  determines  that it is in the best interests of the
     Purchaser  in  light  of  relevant rules and regulations under the laws set
     forth  in  subsection  (ii)  above.

          4.22  ERISA. Based upon the Employee Retirement Income Security Act of
                -----
     1974  ("ERISA"),  and  the  regulations  and  published  interpretations
             -----
     thereunder: (i) neither the Company nor any of its Subsidiaries has engaged
     in  any  Prohibited  Transactions  (as  defined in Section 406 of ERISA and
     Section  4975  of  the  Internal  Revenue  Code  of  1986,  as amended (the
     "Code")); (ii) each of the Company and each of its Subsidiaries has met all
      ----
     applicable  minimum  funding  requirements  under  Section  302 of ERISA in
     respect of its plans; (iii) neither the Company nor any of its Subsidiaries
     has  any knowledge of any event or occurrence which would cause the Pension
     Benefit  Guaranty  Corporation  to  institute proceedings under Title IV of
     ERISA  to  terminate any employee benefit plan(s); (iv) neither the Company
     nor  any  of  its  Subsidiaries  has  any  fiduciary  responsibility  for
     investments  with  respect  to any plan existing for the benefit of persons
     other  than  the  Company's or such Subsidiary's employees; and (v) neither
     the  Company  nor  any  of  its  Subsidiaries  has withdrawn, completely or
     partially,  from  any  multi-employer pension plan so as to incur liability
     under  the  Multiemployer  Pension  Plan  Amendments  Act  of  1980.

     5.  Representations  and  Warranties of the Purchaser. The Purchaser hereby
         -------------------------------------------------
represents  and  warrants  to  the  Company as follows (such representations and
warranties  do  not  lessen or obviate the representations and warranties of the
Company  set  forth  in  this  Agreement):

          5.1  Requisite  Power  and  Authority. The Purchaser has all necessary
               --------------------------------
     power  and  authority under all applicable provisions of law to execute and
     deliver  this  Agreement  and the Related Agreements and to carry out their
     provisions.  All  corporate action on the Purchaser's part required for the
     lawful  execution and delivery of this Agreement and the Related Agreements
     have  been  or  will  be effectively taken prior to the Closing. Upon their
     execution  and  delivery, this Agreement and the Related Agreements will be
     valid  and  binding obligations of the Purchaser, enforceable in accordance
     with  their  terms,  except:

                                      -12-
<PAGE>

               (a)  as  limited  by  applicable  bankruptcy,  insolvency,
          reorganization,  moratorium  or  other  laws  of  general  application
          affecting  enforcement  of  creditors'  rights;  and

               (b)  as limited by general principles of equity that restrict the
          availability  of  equitable  and  legal  remedies.

          5.2  Investment  Representations.  The  Purchaser understands that the
               ---------------------------
     Note  is  being offered and sold pursuant to an exemption from registration
     contained  in  the  Securities  Act  based  in  part  upon  the Purchaser's
     representations contained in this Agreement, including, without limitation,
     that  the  Purchaser  is  an  "accredited  investor"  within the meaning of
     Regulation  D under the Securities Act of 1933, as amended (the "Securities
     Act").  The  Purchaser confirms that it has received or has had full access
     to  all  the  information  it considers necessary or appropriate to make an
     informed investment decision with respect to the Note to be purchased by it
     under  this  Agreement.  The  Purchaser further confirms that it has had an
     opportunity to ask questions and receive answers from the Company regarding
     the  Company's  and  its  Subsidiaries'  business, management and financial
     affairs  and  the  terms and conditions of the Offering and the Note and to
     obtain  additional  information  (to  the extent the Company possessed such
     information  or  could  acquire  it without unreasonable effort or expense)
     necessary  to verify any information furnished to the Purchaser or to which
     the  Purchaser  had  access.

          5.3  The  Purchaser Bears Economic Risk. The Purchaser has substantial
               ----------------------------------
     experience in evaluating and investing in private placement transactions of
     securities  in  companies  similar  to the Company so that it is capable of
     evaluating  the  merits  and risks of its investment in the Company and has
     the  capacity  to  protect  its  own  interests.

          5.4  Acquisition  for Own Account. The Purchaser is acquiring the Note
               ----------------------------
     for  the  Purchaser's own account for investment only, and not as a nominee
     or agent and not with a view towards or for resale in connection with their
     distribution.

          5.5  The  Purchaser Can Protect Its Interest. The Purchaser represents
               ---------------------------------------
     that  by  reason  of  its,  or  of its management's, business and financial
     experience, the Purchaser has the capacity to evaluate the merits and risks
     of  its  investment  in  the  Note  and  to  protect  its  own interests in
     connection  with  the  transactions  contemplated in this Agreement and the
     Related  Agreements.  Further,  the Purchaser is aware of no publication of
     any  advertisement  in connection with the transactions contemplated in the
     Agreement  or  the  Related  Agreements.

          5.6  Accredited  Investor.  The  Purchaser  represents  that  it is an
               --------------------
     accredited investor within the meaning of Regulation D under the Securities
     Act.

          5.7  Legend.  The  Note shall bear substantially the following legend:
               ------

               "THIS  NOTE  HAS  NOT  BEEN  REGISTERED  UNDER THE SECURITIES ACT
               OF  1933,  AS  AMENDED,  OR ANY APPLICABLE STATE SECURITIES LAWS.
               THIS  NOTE  MAY  NOT  BE  SOLD,  OFFERED  FOR  SALE,  PLEDGED  OR
               HYPOTHECATED  IN  THE  ABSENCE  OF  AN  EFFECTIVE  REGISTRATION
               STATEMENT  AS  TO  THIS  NOTE UNDER SAID ACT AND APPLICABLE STATE

                                      -13-
<PAGE>

               SECURITIES  LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
               TO  GULF  COAST  OIL  CORPORATION  THAT  SUCH REGISTRATION IS NOT
               REQUIRED."

     6.  Covenants  of  the  Company.  The Company covenants and agrees with the
         ---------------------------
Purchaser  as  follows:

          6.1  Reporting  Requirements. The Company will deliver, or cause to be
               -----------------------
     delivered,  to  the Purchaser each of the following, which shall be in form
     and  detail  acceptable  to  the  Purchaser:

               (a) As soon as available, and in any event within one hundred and
          five  (105)  days  after the end of each fiscal year of the Parent and
          the  Company,  each  of  the  Parent's  Company's  audited  financial
          statements  with  a report of independent certified public accountants
          of  recognized  standing selected by the Company and acceptable to the
          Purchaser (the "Accountants"), which annual financial statements shall
                          -----------
          be  without  qualification  and shall include each of the Parent's and
          the  Company's balance sheet as at the end of such fiscal year and the
          related  statements  of each of the Parent's and the Company's income,
          retained  earnings  and  cash  flows  for  the fiscal year then ended,
          prepared  on  a  consolidating  and  consolidated basis to include the
          Parent  and  the  Company,  all  in  reasonable detail and prepared in
          accordance  with GAAP, together with (i) if and when available, copies
          of  any  management  letters  prepared  by the Accountants; and (ii) a
          certificate  of  the  Parent's  President,  Chief Executive Officer or
          Chief  Financial  Officer  stating that such financial statements have
          been  prepared in accordance with GAAP and whether or not such officer
          has knowledge of the occurrence of any Event of Default (as defined in
          the  Note)  and,  if  so,  stating in reasonable detail the facts with
          respect  thereto;

               (b)  As soon as available and in any event within fifty (50) days
          after  the  end  of  each  fiscal  quarter  of  the  Parent,  an
          unaudited/internal  balance  sheet  and statements of income, retained
          earnings and cash flows of the Parent and the Company as at the end of
          and  for  such  quarter  and  for  the year to date period then ended,
          prepared  on  a  consolidating  and  consolidated basis to include the
          Parent  and  the  Company,  in  reasonable  detail  and  stating  in
          comparative form the figures for the corresponding date and periods in
          the  previous  year,  all prepared in accordance with GAAP, subject to
          year-end  adjustments and accompanied by a certificate of the Parent's
          President, Chief Executive Officer or Chief Financial Officer, stating
          (i)  that  such  financial statements have been prepared in accordance
          with  GAAP, subject to year-end audit adjustments, and (ii) whether or
          not  such  officer  has  knowledge  of  the occurrence of any Event of
          Default (as defined in the Note) not theretofore reported and remedied
          and,  if  so,  stating  in  reasonable  detail  the facts with respect
          thereto;  and

               (c) The Company shall deliver, or cause the applicable Subsidiary
          of  the  Company  to  deliver, such other information as the Purchaser
          shall  reasonably  request.

          6.2  Use  of  Funds. The Company shall use the proceeds of the sale of
               --------------
     the  Note  solely  for  the  following:  (a)  $4,500,000 for the purpose of

                                      -14-
<PAGE>

     acquiring  the  oil  and  gas  properties  described  in the Asset Purchase
     Agreement  dated  as  of  the  date  hereof  among  the Company, J&P Family
     Properties,  Ltd. and Lara Energy, Inc., (b) $175,000 to fund the Servicing
     Payment,  (c)  $45,000  to  fund  the  Purchaser's  legal and due diligence
     expenses  and  (d)  $280,000 for the purpose of future drilling expenses of
     the Company with respect to the interests acquired by the Company under the
     Acquisition  Agreement,  less  such  other amounts as may be payable by the
     Company to the Purchaser under the terms of the Proposal Letter provided by
     the  Purchaser  to  the  Parent  in  connection  with  the  transactions
     contemplated  hereby.

          6.3  Access  to  Facilities.  Each  of  the  Company  and  each of its
               ----------------------
     Subsidiaries  will  permit  any representatives designated by the Purchaser
     (or  any  successor  of  the  Purchaser), upon reasonable notice and during
     normal  business  hours,  at  such  person's  expense  and accompanied by a
     representative  of  the  Company  or  any Subsidiary (provided that no such
     prior  notice  shall  be required to be given and no such representative of
     the  Company or any Subsidiary shall be required to accompany the Purchaser
     in the event the Purchaser believes such access is necessary to preserve or
     protect  the  Collateral  (as  defined in the Master Security Agreement) or
     following  the occurrence and during the continuance of an Event of Default
     (as  defined  in  the  Note)),  to:

               (a) visit and inspect any of the properties of the Company or any
          of  its  Subsidiaries;

               (b) examine the corporate and financial records of the Company or
          any  of  its Subsidiaries (unless such examination is not permitted by
          federal, state or local law or by contract) and make copies thereof or
          extracts  therefrom;  and

               (c)  discuss the affairs, finances and accounts of the Company or
          any  of  its Subsidiaries with the directors, officers and independent
          accountants  of  the  Company  or  any  of  its  Subsidiaries.

     Notwithstanding  the  foregoing,  neither  the  Company  nor  any  of  its
     Subsidiaries  will  provide  any  material,  non-public  information to the
     Purchaser  unless  the  Purchaser  signs  a  confidentiality  agreement and
     otherwise  complies  with Regulation FD, under the federal securities laws.

          6.4  Taxes.  Each  of  the  Company  and each of its Subsidiaries will
               -----
     promptly  pay  and  discharge, or cause to be paid and discharged, when due
     and  payable,  all  taxes,  assessments  and governmental charges or levies
     imposed  upon  the income, profits, property or business of the Company and
     its  Subsidiaries; provided, however, that any such tax, assessment, charge
     or  levy  need  not  be  paid  currently  if (i) the validity thereof shall
     currently  and  diligently  be  contested  in  good  faith  by  appropriate
     proceedings, (ii) such tax, assessment, charge or levy shall have no effect
     on the lien priority of the Purchaser in any property of the Company or any
     of  its  Subsidiaries and (iii) if the Company and/or such Subsidiary shall
     have  set  aside  on  its  books  adequate reserves with respect thereto in
     accordance  with  GAAP;  and  provided,  further,  that the Company and its
     Subsidiaries  will  pay  all  such  taxes,  assessments,  charges or levies
     forthwith  upon the commencement of proceedings to foreclose any lien which
     may  have  attached  as  security  therefor.

                                      -15-
<PAGE>

          6.5  Insurance. Each of the Company and its Subsidiaries will keep its
               ---------
     assets which are of an insurable character insured by financially sound and
     reputable  insurers  against  loss  or  damage by fire, explosion and other
     risks  customarily  insured  against  by  companies  in  similar  business
     similarly situated as the Company and its Subsidiaries; and the Company and
     its  Subsidiaries  will  maintain,  with  financially  sound  and reputable
     insurers,  insurance  against  other  hazards  and  risks  and liability to
     persons  and  property  to  the  extent and in the manner which the Company
     reasonably  believes  is  customary  for  companies  in  similar  business
     similarly  situated  as  the Company and its Subsidiaries and to the extent
     available  on  commercially  reasonable terms. The Company, and each of its
     Subsidiaries,  will  jointly  and severally bear the full risk of loss from
     any loss of any nature whatsoever with respect to the assets pledged to the
     Purchaser  as security for their respective obligations hereunder and under
     the  Related  Agreements.  At  the  Company's and each of its Subsidiaries'
     joint  and several cost and expense in amounts and with carriers reasonably
     acceptable  to  the  Purchaser,  each  of  the  Company  and  each  of  its
     Subsidiaries  shall (i) keep all its insurable properties and properties in
     which  it  has  an  interest  insured  against  the hazards of fire, flood,
     sprinkler leakage, those hazards covered by extended coverage insurance and
     such  other  hazards,  and for such amounts, as is customary in the case of
     companies  engaged in businesses similar to the Company's or the respective
     Subsidiary's  including  business  interruption  insurance; (ii) maintain a
     bond  in  such  amounts as is customary in the case of companies engaged in
     businesses similar to the Company's or the respective Subsidiary's insuring
     against  larceny,  embezzlement  or  other  criminal  misappropriation  of
     insured's  officers  and  employees  who  may either singly or jointly with
     others at any time have access to the assets or funds of the Company or any
     of  its  Subsidiaries  either directly or through governmental authority to
     draw upon such funds or to direct generally the disposition of such assets;
     (iii)  maintain  public  and product liability insurance against claims for
     personal injury, death or property damage suffered by others; (iv) maintain
     all  such  worker's  compensation  or  similar insurance as may be required
     under  the  laws  of  any state or jurisdiction in which the Company or the
     respective Subsidiary is engaged in business; and (v) furnish the Purchaser
     with  (x)  copies  of  all policies and evidence of the maintenance of such
     policies  at  least  thirty  (30)  days  before  any  expiration  date, (y)
     excepting  the Company's workers' compensation policy, endorsements to such
     policies  naming  the Purchaser as "co-insured" or "additional insured" and
     appropriate loss payable endorsements in form and substance satisfactory to
     the Purchaser, naming the Purchaser as loss payee, and (z) evidence that as
     to  the  Purchaser  the  insurance  coverage  shall  not  be  impaired  or
     invalidated  by any act or neglect of the Company or any Subsidiary and the
     insurer  will  provide  the Purchaser with at least thirty (30) days notice
     prior  to  cancellation. The Company and each Subsidiary shall instruct the
     insurance  carriers  that in the event of any loss thereunder, the carriers
     shall  make  payment for such loss to the Company and/or the Subsidiary and
     the  Purchaser jointly. In the event that as of the date of receipt of each
     loss  recovery  upon  any such insurance, the Purchaser has not declared an

                                      -16-
<PAGE>

     event  of  default  with  respect  to  this Agreement or any of the Related
     Agreements,  then  the Company and/or such Subsidiary shall be permitted to
     direct  the application of such loss recovery proceeds toward investment in
     property,  plant  and equipment that would comprise "Collateral" secured by
     the Purchaser's security interest pursuant to the Master Security Agreement
     or  such  other  security  agreement as shall be required by the Purchaser,
     with  any  surplus funds to be applied toward payment of the obligations of
     the  Company to the Purchaser. In the event that the Purchaser has properly
     declared  an  event of default with respect to this Agreement or any of the
     Related Agreements, then all loss recoveries received by the Purchaser upon
     any  such  insurance  thereafter  may  be applied to the obligations of the
     Company  hereunder  and  under the Related Agreements, in such order as the
     Purchaser may determine. Any surplus (following satisfaction of all Company
     obligations to the Purchaser) shall be paid by the Purchaser to the Company
     or  applied  as  may  be  otherwise required by law. Any deficiency thereon
     shall  be  paid  by  the  Company  or the Subsidiary, as applicable, to the
     Purchaser,  on  demand.

          6.6  Intellectual  Property.  Each  of  the  Company  and  each of its
               ----------------------
     Subsidiaries  shall maintain in full force and effect its existence, rights
     and  franchises  and  all  licenses  and  other  rights to use Intellectual
     Property  owned or possessed by it and reasonably deemed to be necessary to
     the  conduct  of  its  business.

          6.7  Properties. Each of the Company and each of its Subsidiaries will
               ----------
     keep its properties in good repair, working order and condition, reasonable
     wear  and  tear excepted, and from time to time make all needful and proper
     repairs,  renewals,  replacements,  additions and improvements thereto; and
     each  of  the Company and each of its Subsidiaries will at all times comply
     with  each provision of all leases to which it is a party or under which it
     occupies  property  if  the  breach  of  such  provision  could,  either
     individually or in the aggregate, reasonably be expected to have a Material
     Adverse  Effect.

          6.8  Confidentiality. The Company will not, and will not permit any of
               ---------------
     its  Subsidiaries  to,  disclose,  and  will  not  include  in  any  public
     announcement,  the name of the Purchaser, unless expressly agreed to by the
     Purchaser  or  unless  and  until  such  disclosure  is  required by law or
     applicable  regulation,  and  then  only to the extent of such requirement.
     Notwithstanding  the  foregoing,  the  Company may disclose the Purchaser's
     identity  and  the  terms  of this Agreement to its current and prospective
     debt  and  equity  financing  sources.

          6.9  Required  Approvals. (I) Except as set forth on Schedule 6.9, the
               -------------------                             ------------
     Company, without the prior written consent of the Purchaser, shall not, and
     shall  not  permit  any  of  its  Subsidiaries  to:

               (a)  (i)  directly  or  indirectly  declare or pay any dividends,
          other  than  dividends  paid to the Company or any of its wholly-owned
          Subsidiaries,  (ii)  issue  any  preferred  stock  that is mandatorily
          redeemable  prior to the one year anniversary of the Maturity Date (as
          defined  in  the  Note)  or (iii) redeem any of its preferred stock or
          other  equity  interests;

               (b)  liquidate,  dissolve or effect a material reorganization (it
          being  understood  that  in  no  event shall the Company or any of its
          Subsidiaries  dissolve,  liquidate  or  merge with any other person or
          entity  (unless,  in the case of such a merger, the Company or, in the
          case  of  merger  not  involving  the  Company,  such  Subsidiary,  as
          applicable,  is  the  surviving  entity);

               (c)  become  subject to (including, without limitation, by way of
          amendment  to or modification of) any agreement or instrument which by
          its  terms  would  (under any circumstances) restrict the Company's or
          any  of  its  Subsidiaries,  right  to  perform the provisions of this
          Agreement, any Related Agreement or any of the agreements contemplated
          hereby  or  thereby;

                                      -17-
<PAGE>

               (d)  materially  alter or change the scope of the business of the
          Company  and  its  Subsidiaries  taken  as  a  whole;  or

               (e) (i) create, incur, assume or suffer to exist any indebtedness
          (exclusive  of trade debt and debt incurred to finance the purchase of
          equipment (not in excess of five percent (5%) of the fair market value
          of  the  Company's  and  its Subsidiaries' assets)) whether secured or
          unsecured  other  than  (x)  the  Company's  obligations  owed  to the
          Purchaser,  (y) indebtedness set forth on Schedule 6.9 attached hereto
          and made a part hereof and any refinancings or replacements thereof on
          terms  no  less favorable to the Purchaser than the indebtedness being
          refinanced  or  replaced,  and  (z)  any  indebtedness  incurred  in
          connection  with  the purchase of assets (other than equipment) in the
          ordinary  course  of  business,  or  any  refinancings or replacements
          thereof  on  terms  no  less  favorable  to  the  Purchaser  than  the
          indebtedness  being  refinanced  or  replaced,  so  long  as  any lien
          relating thereto shall only encumber the fixed assets so purchased and
          no other assets of the Company or any of its Subsidiaries; (ii) cancel
          any  indebtedness  owing  to  it in excess of $50,000 in the aggregate
          during  any  12  month  period;  (iii)  assume,  guarantee, endorse or
          otherwise  become  directly  or contingently liable in connection with
          any  obligations of any other person or entity, except the endorsement
          of negotiable instruments by the Company or any Subsidiary thereof for
          deposit  or  collection or similar transactions in the ordinary course
          of  business  or  guarantees of indebtedness otherwise permitted to be
          outstanding  pursuant  to  this  clause  (e);  and

          (II)  The Company, without the prior written consent of the Purchaser,
     shall  not,  and  shall  not  permit  any of its Subsidiaries to, create or
     acquire  any Subsidiary after the date hereof unless (i) such Subsidiary is
     a wholly-owned Subsidiary of the Company and (ii) such Subsidiary becomes a
     party  to the Master Security Agreement, the Stock Pledge Agreement and the
     Subsidiary  Guaranty  (either  by  executing  a  counterpart  thereof or an
     assumption  or  joinder  agreement  in  respect thereof) and, to the extent
     required  by  the Purchaser, satisfies each condition of this Agreement and
     the  Related  Agreements  as  if  such  Subsidiary were a Subsidiary on the
     Closing  Date.

          6.10  Opinion.  On  the  Closing Date, the Company will deliver to the
                -------
     Purchaser  an  opinion  acceptable  to  the  Purchaser  from  the Company's
     external  legal  counsel  in  the  form  of  Exhibit  B  hereto.
                                                  ----------

          6.11  Margin Stock. The Company will not permit any of the proceeds of
                ------------
     the Note to be used directly or indirectly to "purchase" or "carry" "margin
     stock"  or  to repay indebtedness incurred to "purchase" or "carry" "margin
     stock"  within  the  respective  meanings of each of the quoted terms under
     Regulation U of the Board of Governors of the Federal Reserve System as now
     and  from  time  to  time  hereafter  in  effect.

          6.12  Financing  Right  of  First  Refusal.
                ------------------------------------

               (a)  The  Company hereby grants to the Purchaser a right of first
          refusal  to  provide any Additional Financing (as defined below) to be
          issued  by  the Company and/or any of its Subsidiaries, subject to the
          following  terms and conditions. From and after the date hereof, prior
          to  the  incurrence  of any additional indebtedness and/or the sale or

                                      -18-
<PAGE>

          issuance  of  any  equity  interests  of  the  Company  or  any of its
          Subsidiaries  (an  "Additional  Financing"),  the  Company  and/or any
          Subsidiary  of  the  Company,  as  the  case  may be, shall notify the
          Purchaser of its intention to enter into such Additional Financing. In
          connection  therewith,  the  Company  and/or the applicable Subsidiary
          thereof  shall  submit  a  fully executed term sheet (a "Proposed Term
          Sheet")  to  the  Purchaser  setting  forth  the terms, conditions and
          pricing  of  any  such  Additional  Financing  (such  financing  to be
          negotiated  on  "arm's  length"  terms  and  the  terms  thereof to be
          negotiated  in  good faith) proposed to be entered into by the Company
          and/or  such  Subsidiary.  The Purchaser shall have the right, but not
          the obligation, to deliver its own proposed term sheet (the "Purchaser
          Term  Sheet")  setting  forth  the terms and conditions upon which the
          Purchaser would be willing to provide such Additional Financing to the
          Company and/or such Subsidiary. The Purchaser Term Sheet shall contain
          terms  no  less  favorable  to the Company and/or such Subsidiary than
          those  outlined  in  Proposed  Term Sheet. The Purchaser shall deliver
          such  Purchaser Term Sheet within ten calendar days of receipt of each
          such  Proposed  Term  Sheet.  If  the provisions of the Purchaser Term
          Sheet are at least as favorable to the Company and/or such Subsidiary,
          as  the case may be, as the provisions of the Proposed Term Sheet, the
          Company  and/or  such  Subsidiary  shall enter into and consummate the
          Additional Financing transaction outlined in the Purchaser Term Sheet.

               (b)  The  Company  will not, and will not permit its Subsidiaries
          to,  agree, directly or indirectly, to any restriction with any person
          or  entity  which limits the ability of the Purchaser to consummate an
          Additional  Financing  with  the  Company  or any of its Subsidiaries.

          6.13  Summaries;  Reports. The Company shall deliver to the Purchaser,
                -------------------
     within  two (2) business days following the end of each month, summaries of
     the  Company's  lease  operating  expenses  and  production relating to the
     Company's  oil  and  gas  properties  as  and for the immediately preceding
     month.  The Company shall deliver to the Purchaser, within two (2) business
     days  following the end of each October and April, or at such other time as
     the Purchaser shall request, an economic reserve report with respect to the
     Company  prepared  by  R.A.  Lenser  or  such other registered professional
     engineer  acceptable  to  the  Purchaser.

     7.  Covenants of the Purchaser. The Purchaser covenants and agrees with the
         --------------------------
Company  as  follows:

          7.1  Confidentiality.  The  Purchaser  will not disclose, and will not
               ---------------
     include  in  any  public  announcement,  the  name  of  the Company, unless
     expressly  agreed  to by the Company or unless and until such disclosure is
     required  by  law  or applicable regulation, and then only to the extent of
     such  requirement.

          7.2  Limitation  on  Acquisition  of  Common  Stock  of  the  Company.
               ----------------------------------------------------------------
     Notwithstanding  anything  to the contrary contained in this Agreement, any
     Related  Agreement or any document, instrument or agreement entered into in
     connection  with  any  other  transactions  between  the  Purchaser and the
     Company,  the  Purchaser  may  not acquire stock in the Company (including,
     without  limitation,  pursuant  to a contract to purchase, by exercising an
     option  or  warrant,  by  converting  any  other security or instrument, by
     acquiring  or  exercising  any  other  right to acquire, shares of stock or
     other  security  convertible  into  shares  of  stock  in  the  Company, or
     otherwise,  and  such  contracts,  options,  warrants,  conversion or other
     rights  shall  not  be enforceable or exercisable) to the extent such stock
     acquisition  would  cause  any  interest  (including  any  original  issue
     discount)  payable  by  the  Company  to  the  Purchaser  not to qualify as
     "portfolio  interest"  within the meaning of Section 881(c)(2) of the Code,
     by  reason  of  Section  881(c)(3)  of  the  Code,  taking into account the
     constructive  ownership  rules  under Section 871(h)(3)(C) of the Code (the
     "Stock  Acquisition  Limitation").  The  Stock Acquisition Limitation shall
     automatically  become  null and void without any notice to the Company upon
     the  existence  of  an  Event  of  Default  (as  defined  in  the  Note).

     8.  Covenants  of  the Company and the Purchaser Regarding Indemnification.
         ----------------------------------------------------------------------

          8.1  Company  Indemnification.  The  Company agrees to indemnify, hold
               ------------------------
     harmless,  reimburse  and  defend  the  Purchaser,  each of the Purchaser's
     officers,  directors,  agents,  affiliates,  control persons, and principal
     shareholders,  against  all  claims,  costs,  expenses,  liabilities,
     obligations,  losses  or  damages  (including reasonable legal fees) of any
     nature,  incurred  by or imposed upon the Purchaser which result, arise out
     of  or  are  based upon: (i) any misrepresentation by the Company or any of
     its  Subsidiaries  or  breach  of any warranty by the Company or any of its
     Subsidiaries  in  this  Agreement,  any  other  Related Agreement or in any
     exhibits  or  schedules  attached  hereto or thereto; or (ii) any breach or
     default  in  performance  by  Company  or  any  of  its Subsidiaries of any
     covenant  or  undertaking  to  be  performed  by  Company  or  any  of  its
     Subsidiaries  hereunder,  under  any  other  Related Agreement or any other
     agreement  entered  into  by the Company and/or any of its Subsidiaries and
     the Purchaser relating hereto or thereto; or (iii) (a) the violation of any
     local, state or federal law, rule or regulation pertaining to environmental
     regulation,  contamination or cleanup (collectively, "Environmental Laws"),
     including  without  limitation,  the  Comprehensive Environmental Response,
     Compensation  and  Liability Act of 1980 (42 U.S.C. Sec.9601 et seq. and 40
     CFR  Sec.302.1 et seq.), the Resource Conservation and Recovery Act of 1976
     (42  U.S.C.  Sec.6901 et seq.), the Federal Water Pollution Control Act (33
     U.S.C.  Sec.1251  et  seq.,  and  40  CFR Sec.116.1 et seq.), the Hazardous
     Materials  Transportation  Act  (49  U.S.C.  Sec.1801  et  seq.)  and  the
     regulations  promulgated pursuant to said laws, all as amended and relating
     to  or affecting the Company and/or any Subsidiary and the Company's and/or
     any Subsidiary's properties, whether or not caused by or within the control
     of  the  Purchaser and/or (b) the presence, release or threat of release of
     any  Hazardous  Materials  (including,  without  limitation,  asbestos,
     polychlorinated  biphenyls,  petroleum  products,  flammable  explosives,
     radioactive materials, infectious substances or raw materials which include
     hazardous  constituents)  on,  in, under or affecting all or any portion of
     any property of the Company and/or any Subsidiary or any surrounding areas,
     regardless  of  whether  or  not  caused  by  or  within the control of the
     Purchaser.

          8.2  Purchaser's  Indemnification.  The Purchaser agrees to indemnify,
               ----------------------------
     hold  harmless,  reimburse and defend the Company and each of the Company's
     officers,  directors,  agents,  affiliates,  control  persons and principal
     shareholders,  at  all  times  against  any  claims,  costs,  expenses,
     liabilities,  obligations,  losses  or  damages (including reasonable legal
     fees)  of any nature, incurred by or imposed upon the Company which result,
     arise  out of or are based upon: (i) any misrepresentation by the Purchaser
     or  breach  of  any  warranty  by the Purchaser in this Agreement or in any
     exhibits or schedules attached hereto or any Related Agreement; or (ii) any

                                      -19-
<PAGE>

     breach  or  default  in  performance  by  the  Purchaser of any covenant or
     undertaking  to  be  performed  by  the  Purchaser  hereunder, or any other
     agreement  entered  into  by the Company and the Purchaser relating hereto.

     9.  Miscellaneous.
         --------------

          9.1  Governing  Law,  Jurisdiction  and  Waiver  of  Jury  Trial.
               -----------------------------------------------------------

               (a)  THIS  AGREEMENT  AND  THE  OTHER RELATED AGREEMENTS SHALL BE
          GOVERNED  BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
          THE  STATE  OF  NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
          SUCH  STATE,  WITHOUT  REGARD  TO  PRINCIPLES  OF  CONFLICTS  OF LAWS.

               (b)  THE  COMPANY  HEREBY  CONSENTS  AND AGREES THAT THE STATE OR
          FEDERAL  COURTS  LOCATED  IN THE COUNTY OF NEW YORK, STATE OF NEW YORK
          SHALL  HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR
          DISPUTES  BETWEEN  THE COMPANY, ON THE ONE HAND, AND THE PURCHASER, ON
          THE  OTHER  HAND,  PERTAINING  TO THIS AGREEMENT OR ANY OF THE RELATED
          AGREEMENTS  OR  TO  ANY  MATTER  ARISING  OUT  OF  OR  RELATED TO THIS
          AGREEMENT  OR  ANY OF THE OTHER RELATED AGREEMENTS; PROVIDED, THAT THE
          PURCHASER  AND  THE  COMPANY  ACKNOWLEDGE  THAT ANY APPEALS FROM THOSE
          COURTS  MAY  HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY
          OF NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT, NOTHING IN
          THIS  AGREEMENT  SHALL  BE DEEMED OR OPERATE TO PRECLUDE THE PURCHASER
          FROM  BRINGING  SUIT  OR  TAKING  OTHER  LEGAL  ACTION  IN  ANY  OTHER
          JURISDICTION  TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL
          (AS  DEFINED  IN  THE MASTER SECURITY AGREEMENT) OR ANY OTHER SECURITY
          FOR  THE OBLIGATIONS (AS DEFINED IN THE MASTER SECURITY AGREEMENT), OR
          TO  ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE PURCHASER.
          THE  COMPANY  EXPRESSLY  SUBMITS  AND  CONSENTS  IN  ADVANCE  TO  SUCH
          JURISDICTION  IN  ANY  ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND
          THE  COMPANY  HEREBY  WAIVES ANY OBJECTION THAT IT MAY HAVE BASED UPON
          LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.
          THE  COMPANY  HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT
          AND  OTHER  PROCESS  ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT
          SERVICE  OF  SUCH  SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY
          REGISTERED  OR  CERTIFIED MAIL ADDRESSED TO THE COMPANY AT THE ADDRESS
          SET  FORTH  IN  SECTION  9.9  AND THAT SERVICE SO MADE SHALL BE DEEMED
          COMPLETED  UPON THE EARLIER OF THE COMPANY'S ACTUAL RECEIPT THEREOF OR
          THREE  (3)  DAYS  AFTER  DEPOSIT  IN  THE  U.S.  MAILS, PROPER POSTAGE
          PREPAID.

               (c) THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE
          APPLYING  SUCH  APPLICABLE  LAWS.  THEREFORE,  TO  ACHIEVE  THE  BEST
          COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION,

                                      -20-
<PAGE>

          THE  PARTIES  HERETO  WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
          SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN
          CONTRACT,  TORT, OR OTHERWISE BETWEEN THE PURCHASER AND/OR THE COMPANY
          ARISING  OUT  OF,  CONNECTED  WITH,  RELATED  OR  INCIDENTAL  TO  THE
          RELATIONSHIP  ESTABLISHED  BETWEEN  THEM  IN  CONNECTION  WITH  THIS
          AGREEMENT,  ANY  OTHER  RELATED  AGREEMENT OR THE TRANSACTIONS RELATED
          HERETO  OR  THERETO.

          9.2  Severability.  Wherever possible each provision of this Agreement
               ------------
     and  the  Related  Agreements  shall be interpreted in such manner as to be
     effective  and  valid  under  applicable  law, but if any provision of this
     Agreement  or  any  Related  Agreement shall be prohibited by or invalid or
     illegal  under  applicable  law  such provision shall be ineffective to the
     extent  of  such  prohibition  or  invalidity  or  illegality,  without
     invalidating  the  remainder  of such provision or the remaining provisions
     thereof  which  shall  not  in  any  way  be  affected or impaired thereby.

          9.3  Survival.  The  representations,  warranties,  covenants  and
               --------
     agreements  made  herein  shall  survive  any  investigation  made  by  the
     Purchaser  and  the  closing of the transactions contemplated hereby to the
     extent  provided therein. All statements as to factual matters contained in
     any  certificate  or  other  instrument  delivered  by  or on behalf of the
     Company  pursuant  hereto  in connection with the transactions contemplated
     hereby  shall be deemed to be representations and warranties by the Company
     hereunder  solely  as  of  the  date of such certificate or instrument. All
     indemnities  set  forth  herein  shall  survive the execution, delivery and
     termination  of this Agreement and the Note and the making and repayment of
     the  obligations  arising  hereunder,  under  the  Note and under the other
     Related  Agreements.

          9.4  Successors.  Except  as  otherwise expressly provided herein, the
               ----------
     provisions  hereof  shall inure to the benefit of, and be binding upon, the
     successors,  heirs, executors and administrators of the parties hereto. The
     Purchaser  shall  not  be permitted to assign its rights hereunder or under
     any  Related  Agreement  to  a competitor of the Company unless an Event of
     Default  (as  defined  in  the  Note)  has  occurred  and  is  continuing.

          9.5  Entire  Agreement;  Maximum Interest. This Agreement, the Related
               ------------------------------------
     Agreements,  the  exhibits  and  schedules hereto and thereto and the other
     documents  delivered  pursuant  hereto  constitute  the  full  and  entire
     understanding and agreement between the parties with regard to the subjects
     hereof  and no party shall be liable or bound to any other in any manner by
     any  representations,  warranties,  covenants  and  agreements  except  as
     specifically  set  forth  herein  and  therein.  Nothing  contained in this
     Agreement,  any  Related Agreement or in any document referred to herein or
     delivered  in  connection  herewith shall be deemed to establish or require
     the payment of a rate of interest or other charges in excess of the maximum
     rate permitted by applicable law. In the event that the rate of interest or
     dividends required to be paid or other charges hereunder exceed the maximum
     rate permitted by such law, any payments in excess of such maximum shall be
     credited  against  amounts  owed  by  the Company to the Purchaser and thus
     refunded  to  the  Company.

                                      -21-
<PAGE>

          9.6  Amendment  and  Waiver.
               ----------------------

               (a)  This  Agreement  may  be  amended  or modified only upon the
          written  consent  of  the  Company  and  the  Purchaser.

               (b)  The  obligations  of  the  Company  and  the  rights  of the
          Purchaser  under  this  Agreement  may be waived only with the written
          consent  of  the  Purchaser.

               (c)  The  obligations  of  the  Purchaser  and  the rights of the
          Company  under  this  Agreement  may  be  waived only with the written
          consent  of  the  Company.

          9.7  Delays  or  Omissions.  It is agreed that no delay or omission to
               ---------------------
     exercise any right, power or remedy accruing to any party, upon any breach,
     default  or  noncompliance  by  another  party  under this Agreement or the
     Related Agreements, shall impair any such right, power or remedy, nor shall
     it  be  construed  to  be  a  waiver  of  any  such  breach,  default  or
     noncompliance, or any acquiescence therein, or of or in any similar breach,
     default  or  noncompliance thereafter occurring. All remedies, either under
     this  Agreement  or the Related Agreements, by law or otherwise afforded to
     any  party,  shall  be  cumulative  and  not  alternative.

          9.8  Notices.  All notices required or permitted hereunder shall be in
               -------
     writing  and  shall  be  deemed  effectively  given:

               (a)  upon  personal  delivery  to  the  party  to  be  notified;

               (b)  when  sent  by  confirmed  facsimile  if  sent during normal
          business  hours  of  the  recipient, if not, then on the next business
          day;

               (c)  three (3) business days after having been sent by registered
          or  certified  mail,  return  receipt  requested,  postage prepaid; or

               (d)  one  (1)  day  after  deposit  with  a nationally recognized
          overnight  courier,  specifying  next  day  delivery,  with  written
          verification  of  receipt.

     All  communications  shall  be  sent  as  follows:

         If to the Company,    Gulf  Coast  Oil  Corporation
         to:                   5851  San  Felipe,  Suite  775
                               Houston,  TX  77057
                               Attention:  Chief Financial Officer
                               Facsimile:  713-266-4358

                               with a copy to:

                               David M. Loev, Esq.
                               Attorney at Law
                               2777 Allen Parkway
                               Suite 1000
                               Houston, Texas 77019

                                      -22-
<PAGE>

                               Attention:  David Loev, Esq.
                               Facsimile:  713-524-4122

         If to the Purchaser,  Laurus Master Fund, Ltd.
         to:                   c/o M&C Corporate Services Limited
                               P.O.  Box 309 GT
                               Ugland House
                               George Town
                               South Church Street
                               Grand Cayman, Cayman Islands
                               Facsimile:  345-949-8080

                               with a copy to:

                               John E.  Tucker, Esq.
                               825 Third Avenue 14th Floor
                               New York, New York 10022
                               Facsimile:  212-541-4434

                               and to:

                               Scott J. Giordano, Esq.
                               Loeb & Loeb LLP
                               345 Park Avenue
                               New York, New York 10154
                               Facsimile:  212-407-4990

     or  at  such  other  address  as the Company or the Purchaser may designate
     by written notice to the other parties hereto given in accordance herewith.

          9.9  Attorneys'  Fees.  In  the  event  that  any  suit  or  action is
               ----------------
     instituted  to  enforce  any  provision  in  this  Agreement or any Related
     Agreement,  the  prevailing  party  in  such  dispute  shall be entitled to
     recover from the losing party all fees, costs and expenses of enforcing any
     right  of  such  prevailing  party  under or with respect to this Agreement
     and/or  such  Related  Agreement,  including,  without  limitation,  such
     reasonable  fees  and  expenses  of  attorneys and accountants, which shall
     include,  without  limitation,  all  fees,  costs  and expenses of appeals.

          9.10  Titles and Subtitles. The titles of the sections and subsections
                --------------------
     of  this  Agreement are for convenience of reference only and are not to be
     considered  in  construing  this  Agreement.

          9.11  Facsimile  Signatures;  Counterparts.  This  Agreement  may  be
                ------------------------------------
     executed by facsimile signatures and in any number of counterparts, each of
     which  shall be an original, but all of which together shall constitute one
     agreement.

          9.12  Broker's Fees. Except as set forth on Schedule 9.12 hereof, each
                -------------
     party  hereto  represents  and  warrants  that no agent, broker, investment
     banker,  person  or firm acting on behalf of or under the authority of such
     party  hereto is or will be entitled to any broker's or finder's fee or any
     other commission directly or indirectly in connection with the transactions
     contemplated  herein.  Each  party  hereto further agrees to indemnify each
     other party for any claims, losses or expenses incurred by such other party
     as  a  result  of  the  representation  in  this Section 9.12 being untrue.

                                      -23-
<PAGE>

          9.13  Construction.  Each  party  acknowledges  that its legal counsel
                ------------
     participated  in  the  preparation  of  this  Agreement  and  the  Related
     Agreements  and,  therefore,  stipulates that the rule of construction that
     ambiguities  are  to  be  resolved  against the drafting party shall not be
     applied in the interpretation of this Agreement or any Related Agreement to
     favor  any  party  against  the  other.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -24-
<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  the SECURITIES
PURCHASE  AGREEMENT  as  of  the  date  set forth in the first paragraph hereof.

     COMPANY:                                       PURCHASER:

     GULF  COAST  OIL  CORPORATION                  LAURUS  MASTER  FUND,  LTD.

     By: /s/ Edward R. DeStefano                    By: /s/ Eugene Grin
       ---------------------------                     -------------------------
     Name: Edward R. DeStefano                      Name: Eugene Grin
          ------------------------                       -----------------------
     Title: President & CEO                         Title: Director
           -----------------------                        ----------------------

                                      -25-
<PAGE>

                                    EXHIBIT A

                                  FORM OF NOTE

                                      -26-
<PAGE>

                                    EXHIBIT B

                                 FORM OF OPINION

                                      -27-
<PAGE>

                                    EXHIBIT C

                            FORM OF ESCROW AGREEMENT

                                      -28-
<PAGE>
                                  SCHEDULE 4.2
                                  ------------

CENTURY  RESOURCES, INC., a Delaware corporation, is wholly owned by New Century
------------------------
Energy  Corp.

GULF  COAST  OIL  CORPORATION,  a  Delaware  corporation, is wholly owned by New
-----------------------------
Century  Energy  Corp.

                                      -29-
<PAGE>
                                  SCHEDULE 4.3
                                  ------------

                                      None.

                                      -30-
<PAGE>
                                  SCHEDULE 4.6
                                  ------------

                                      None.

                                      -31-
<PAGE>
                                  SCHEDULE 4.7
                                  ------------

     Edward  R.  DeStefano, the Chief Executive Officer and sole Director of New
Century  Energy  Corp.  (the "Parent" of the Company), owns 37,500,000 shares of
the  Parent's common stock, making Mr. DeStefano the majority shareholder of the
Parent. Additionally, Mr. DeStefano is employed by the Parent under a three year
Employment  Agreement,  as  amended,  which  ends  August  31,  2008.

                                      -32-
<PAGE>

                                  SCHEDULE 4.9
                                  ------------

                                      None.

                                      -33-
<PAGE>

                                  SCHEDULE 4.12
                                  -------------

                                      None.

                                      -34-
<PAGE>

                                  SCHEDULE 4.13
                                  -------------

                                      None.

                                      -35-
<PAGE>

                                  SCHEDULE 4.14
                                  -------------

                                      None.

                                      -36-
<PAGE>

                                  SCHEDULE 4.15
                                  -------------

                                      None.

                                      -37-
<PAGE>

                                  SCHEDULE 4.17
                                  -------------

                                      None.

                                      -38-
<PAGE>

                                  SCHEDULE 6.9
                                  ------------

                                      None.

                                      -39-
<PAGE>

                                  SCHEDULE 9.12
                                  -------------

                                      None.

                                      -40-
<PAGE>Exhibit 10.3

THIS  NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS.  THIS NOTE MAY NOT BE SOLD, OFFERED FOR
SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO THIS NOTE UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO GULF COAST OIL CORPORATION THAT
SUCH  REGISTRATION  IS  NOT  REQUIRED.

                                SECURED TERM NOTE
                                -----------------

     FOR VALUE RECEIVED, GULF COAST OIL CORPORATION, a Delaware corporation (the
"COMPANY"),  promises  to  pay  to  LAURUS  MASTER FUND, LTD., c/o M&C Corporate
Services  Limited,  P.O.  Box  309 GT, Ugland House, South Church Street, George
Town,  Grand  Cayman,  Cayman  Islands,  Fax: 345-949-8080 (the "HOLDER") or its
registered  assigns  or  successors in interest, the sum of Five Million Dollars
($5,000,000),  together  with any accrued and unpaid interest hereon, on October
30,  2009  (the  "MATURITY  DATE")  if  not  sooner  paid.

     Capitalized  terms  used  herein without definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the  date hereof by and between the Company and the Holder (as amended, modified
and/or  supplemented  from  time  to  time,  the  "PURCHASE  AGREEMENT").

     The  following  terms  shall apply to this Secured Term Note (this "NOTE"):

                                    ARTICLE 1
                         CONTRACT RATE AND AMORTIZATION

     1.1 Contract Rate. Subject to Sections 2.2 and 3.9, interest payable on the
         -------------
outstanding  principal amount of this Note (the "PRINCIPAL AMOUNT") shall accrue
at  a  rate  per  annum  equal  to  seventeen  and one-half percent (17.5%) (the
"CONTRACT  RATE").  Interest  shall  be (i) calculated on the basis of a 360 day
year,  and  (ii)  payable  monthly,  in  arrears, commencing on July 1, 2006 and
continuing  on  the  first  business  day  of  each  consecutive  calendar month
thereafter  through  and  including the Maturity Date, and on the Maturity Date,
whether  by  acceleration  or  otherwise.

     1.2  Payments.  Amortizing  payments  of  the  aggregate  principal  amount
          --------
outstanding  under  this Note at any time (the "PRINCIPAL AMOUNT") shall be made
by  the Company on July 1, 2006 and on the first business day of each succeeding
month thereafter through and including the Maturity Date (each, an "AMORTIZATION
DATE").  So  long  as  no  Event  of  Default  shall  have  occurred and then be
continuing,  interest  hereunder  shall  only  be  payable as a component of the
Amortization  Amount (as hereafter defined) in accordance with the terms of this
Section  1.2. Subject to Article III below, commencing on the first Amortization
Date,  the  Company shall make monthly payments of principal and interest to the
Holder  on  each  Amortization  Date  equal to the Amortization Amount. All such
payments shall be applied by the Holder (a) first to any fees and expenses owing
by  the  Company  to  the  Holder  pursuant  to (i) this Note, (ii) the Purchase
Agreement  and (iii) any other Related Agreement, (b) then to accrued and unpaid

<PAGE>

interest due on this Note and (c) then to the outstanding Principal Amount under
this  Note.  In  the event the Amortization Amount (as hereafter defined) during
any  month is less than $25,000, then the Company shall nevertheless be required
to  make a monthly payment to the Holder during such month in an amount equal to
the  difference  between  $25,000  and  the then applicable Amortization Amount,
which  such  payment  shall  be  applied  by  the  Holder  to accrued and unpaid
interest,  fees  and  expenses  owing by the Company to the Holder in accordance
with  subsections  (a)  and (b) of the immediately preceding sentence; provided,
                                                                       --------
however,  during  such  time  as  an Event of Default shall have occurred and be
-------
continuing,  the Company shall make interest payments hereunder to the Holder in
accordance  with  Sections  1.1  and  2.2  of  this  Note  without regard to any
reduction in such cash interest payment which may otherwise have been applicable
under  this  Section  1.2  had  no  Event of Default then been in existence. Any
outstanding  Principal  Amount together with any accrued and unpaid interest and
any  and  all  other  unpaid  amounts which are then owing by the Company to the
Holder  under  this  Note,  the  Purchase  Agreement  and/or  any  other Related
Agreement  shall  be  due and payable on the Maturity Date. For purposes of this
Section,  (a)  the  term "AMORTIZATION AMOUNT" shall mean an amount equal to the
product  of  (i)  one-eighth  (.125)  times  (ii)  eighty  percent  (80%)  (the
"APPLICABLE  PERCENTAGE")  of  the  Net  Revenue  relating  to  all  oil and gas
properties  of  the Company (collectively, the "OIL AND GAS PROPERTIES") for the
calendar  month  immediately preceding the Amortization Date; provided, however,
                                                              --------  -------
the  Applicable Percentage shall increase to one hundred percent (100%) upon the
occurrence  and  during  the  continuance  of  an  Event of Default and (b) "NET
REVENUE"  shall  mean  the gross proceeds paid to the Company in respect of oil,
gas  and/or  other  hydrocarbon  production in which the Company has an interest
whether  or  not  such  proceeds  are remitted to the lockbox account and/or any
other  blocked  account  established  by  the  Company  in  connection  with the
transactions  contemplated  hereby  net  of,  in  each case, with respect to the
period for which such Net Revenue relates (i) the reasonable ordinary day to day
expenses  associated  with  the  Company's  operation  of  the leases, wells and
equipment,  including  fuel,  materials,  labor, maintenance, routine production
equipment  replacement,  repairs,  routine workover costs to maintain production
from  an  existing completed well, royalty, severance tax and ad valorem tax, in
each  case  using  accounting practices and procedures ordinary and customary in
the oil and gas industry (the "Lease Operating Expenses") and (ii) the Company's
reasonable  estimate of its federal tax (including federal income tax) liability
(after  taking  into  account  all applicable deductions, depletion and credits)
(the  "Estimated Taxes"), all of which, in the case of the foregoing clauses (i)
and  (ii),  shall be subject to the Holder's approval which shall be provided in
the  exercise  of  the  Holder's  reasonable discretion based on such supporting
documentation  from  the  Company  as  the  Holder  shall  request.

                                    ARTICLE 2
                                EVENTS OF DEFAULT

     2.1  Events  of  Default. The occurrence of any of the following events set
          -------------------
forth  in  this  Section  4.1  shall  constitute  an event of default ("EVENT OF
DEFAULT")  hereunder:

          (a)  Failure to Pay. The Company fails to pay when due any installment
               --------------
     of  principal, interest or other fees hereon in accordance herewith, or the
     Company  fails to pay any of the other Obligations (under and as defined in

<PAGE>

     the  Master  Security  Agreement)  when  due,  and,  in any such case, such
     failure  shall  continue  for a period of three (3) days following the date
     upon  which  any  such  payment  was  due.

          (b)  Breach  of  Covenant.  The  Company  or  any  of its Subsidiaries
               ---------------------
     breaches  any  covenant  or any other term or condition of this Note in any
     material  respect  and  such  breach,  if  subject to cure, continues for a
     period  of  fifteen  (15)  days  after  the  occurrence  thereof.

          (c)  Breach  of  Representations  and  Warranties. Any representation,
               --------------------------------------------
     warranty  or  statement  made or furnished by New Century Energy Corp. (the
     "Parent"),  the  Company,  any of its Subsidiaries or any guarantor (each a
     "Guarantor") issuing to the Holder a guaranty agreement (each a "Guaranty")
     in  connection  with  the transaction contemplated hereby in this Note, the
     Purchase  Agreement  or  any  other  Related Agreement shall at any time be
     false or misleading in any material respect on the date as of which made or
     deemed  made.

          (d)  Default Under Other Agreements. The occurrence of any default (or
               ------------------------------
     similar  term)  in  the observance or performance of any other agreement or
     condition  relating  to  any indebtedness or contingent obligation, in each
     case  in  an aggregate amount of not less than $100,000, of the Parent, the
     Company or any of its Subsidiaries beyond the period of grace (if any), the
     effect  of  which  default  is to cause, or permit the holder or holders of
     such  indebtedness  or  beneficiary  or  beneficiaries  of  such contingent
     obligation  to  cause,  such indebtedness to become due prior to its stated
     maturity  or  such  contingent  obligation  to  become  payable;

          (e) Material Adverse Effect. Any change or the occurrence of any event
              -----------------------
     which  could  reasonably  be  expected  to  have a Material Adverse Effect;

          (f)  Bankruptcy.  The  Parent, the Company, any of its Subsidiaries or
               ----------
     any  Guarantor  shall  (i)  apply  for,  consent  to or suffer to exist the
     appointment  of,  or  the  taking  of possession by, a receiver, custodian,
     trustee  or  liquidator  of  itself  or of all or a substantial part of its
     property,  (ii)  make  a  general  assignment for the benefit of creditors,
     (iii)  commence  a voluntary case under the federal bankruptcy laws (as now
     or  hereafter  in effect), (iv) be adjudicated a bankrupt or insolvent, (v)
     file  a  petition  seeking to take advantage of any other law providing for
     the relief of debtors, (vi) acquiesce to, without challenge within ten (10)
     days  of  the  filing  thereof, or failure to have dismissed, within thirty
     (30) days, any petition filed against it in any involuntary case under such
     bankruptcy  laws, or (vii) take any action for the purpose of effecting any
     of  the  foregoing;

          (g)  Judgments.  Attachments  or  levies  in excess of $100,000 in the
               ---------
     aggregate are made upon the Parent, the Company, or its Subsidiary's or any
     Guarantor's  assets or a judgment is rendered against the Company's, any of
     its  Subsidiary's or any Guarantor's property involving a liability of more
     than  $100,000  which  shall  not  have been vacated, discharged, stayed or
     bonded  within  thirty  (30)  days  from  the  entry  thereof;

          (h) Insolvency. The Parent or the Company or any Guarantor shall admit
              ----------
     in  writing its inability, or be generally unable, to pay its debts as they
     become  due  or  cease  operations  of  its  present  business;

<PAGE>

          (i)  Change  of  Control. A Change of Control (as defined below) shall
               -------------------
     occur  with  respect  to  the  Company,  unless Holder shall have expressly
     consented to such Change of Control in writing. A "CHANGE OF CONTROL" shall
     mean  any  event  or  circumstance as a result of which (i) any "PERSON" or
     "GROUP"  (as  such  terms  are  defined  in Sections 13(d) and 14(d) of the
     Exchange  Act,  as in effect on the date hereof), other than the Holder, is
     or  becomes the "BENEFICIAL OWNER" (as defined in Rules 13(d)-3 and 13(d)-5
     under  the Exchange Act), directly or indirectly, of 35% or more on a fully
     diluted basis of the then outstanding voting equity interest of the Company
     (other  than  a  "PERSON"  or "GROUP" that beneficially owns 35% or more of
     such  outstanding  voting  equity  interests  of  the  Company  on the date
     hereof), (ii) unless the Holder provides its written consent thereto (which
     shall  not be unreasonably withheld), the Board of Directors of the Company
     shall cease to consist of a majority of the Company's board of directors on
     the  date  hereof  (or  directors  appointed  by a majority of the board of
     directors  in  effect  immediately  prior to such appointment) or (iii) the
     Company  or  any  of its Subsidiaries merges or consolidates with, or sells
     all  or  substantially  all  of  its assets to, any other person or entity;

          (j)  Indictment;  Proceedings. The indictment or threatened indictment
               ------------------------
     of the Parent, the Company, any of its Subsidiaries or any Guarantor or any
     executive  officer  of  the  Parent, the Company or any of its Subsidiaries
     under  any  criminal statute, or commencement or threatened commencement of
     criminal  or  civil  proceeding against the Parent, the Company, any of its
     Subsidiaries  or  any Guarantor or any executive officer of the Parent, the
     Company, any of its Subsidiaries or any Guarantor pursuant to which statute
     or  proceeding penalties or remedies sought or available include forfeiture
     of  any  of  the  property  of  the Company, any of its Subsidiaries or any
     Guarantor;  or

          (k)  The  Purchase  Agreement  and Related Agreements. (i) An Event of
               ------------------------------------------------
     Default  shall  occur under and as defined in the Purchase Agreement or any
     other  Related  Agreement (including, without limitation, the breach by any
     Guarantor  of any provision of any Guaranty), (ii) the Parent, the Company,
     any of its Subsidiaries or any Guarantor shall breach any term or provision
     of  the  Purchase  Agreement or any other Related Agreement in any material
     respect  and  such  breach,  if capable of cure, continues unremedied for a
     period of fifteen (15) days after the occurrence thereof, (iii) the Parent,
     the  Company,  any  of  its  Subsidiaries  or  any  Guarantor  attempts  to
     terminate, challenges the validity of, or its liability under, the Purchase
     Agreement or any Related Agreement, (iv) any proceeding shall be brought to
     challenge  the  validity,  binding  effect of the Purchase Agreement or any
     Related  Agreement,  (v)  the  Purchase  Agreement or any Related Agreement
     ceases to be a valid, binding and enforceable obligation of the Parent, the
     Company,  any  of  its  Subsidiaries  or  any Guarantor (to the extent such
     persons  or entities are a party thereto) or (vi) an Event of Default shall
     occur  under  and as defined in any one or more of the following documents:
     (A)  the  Securities  Purchase  Agreement  dated as of June 30, 2005 by and
     between the Parent and the Holder (the "June 2005 Purchase Agreement"), (B)
     each Related Agreement referred to in the June 2005 Purchase Agreement, (C)
     the  Securities  Purchase  Agreement  dated as of September 19, 2005 by and
     between  the  Parent  and  the  Holder  (the  "September  2005  Purchase
     Agreement"),  (D)  each Related Agreement referred to in the September 2005
     Purchase Agreement, (E) the Securities Purchase Agreement dated as of April
     28,  2006  by  and  between  the  Company  and  the Holder (the "April 2006
     Purchase  Agreement")  and  (F)  each  Related Agreement referred to in the
     April  2006  Purchase Agreement, as each may be amended, restated, modified
     and/or  supplemented  from  time  to  time.

<PAGE>

     2.2  Default  Interest. Following the occurrence and during the continuance
          -----------------
of  an  Event of Default, the Company shall pay additional interest on this Note
in  an  amount  equal  to  two  percent  (2%)  per  month,  and  all outstanding
obligations  under  this  Note,  the  Purchase  Agreement and each other Related
Agreement,  including unpaid interest, shall continue to accrue interest at such
additional  interest  rate from the date of such Event of Default until the date
such  Event  of  Default  is  cured  or  waived.

     2.3 Default Payment. Following the occurrence and during the continuance of
         ---------------
an  Event of Default, the Holder, at its option, may demand repayment in full of
all  obligations and liabilities owing by Company to the Holder under this Note,
the  Purchase  Agreement and/or any other Related Agreement and/or may elect, in
addition  to  all rights and remedies of the Holder under the Purchase Agreement
and  the  other  Related  Agreements  and all obligations and liabilities of the
Company  under  the  Purchase  Agreement  and  the  other Related Agreements, to
require  the  Company to make a Default Payment ("DEFAULT PAYMENT"). The Default
Payment  shall  be  130%  of  the outstanding principal amount of the Note, plus
accrued but unpaid interest, all other fees then remaining unpaid, and all other
amounts  payable  hereunder.  The  Default Payment shall be applied first to any
fees  due  and  payable  to  the  Holder  pursuant  to  this  Note, the Purchase
Agreement,  and/or  the  other  Related  Agreements,  then to accrued and unpaid
interest  due on this Note and then to the outstanding principal balance of this
Note.  The Default Payment shall be due and payable immediately on the date that
the  Holder  has  exercised  its  rights  pursuant  to  this  Section  2.3.

                                    ARTICLE 3
                                  MISCELLANEOUS

     3.1  Cumulative Remedies. The remedies under this Note shall be cumulative.
          -------------------

     3.2  Failure  or  Indulgence Not Waiver. No failure or delay on the part of
          ----------------------------------
the  Holder  hereof  in  the exercise of any power, right or privilege hereunder
shall  operate  as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of  any  other  right,  power  or  privilege.  All  rights and remedies existing
hereunder  are  cumulative  to,  and  not  exclusive  of, any rights or remedies
otherwise  available.

     3.3  Notices.  Any notice herein required or permitted to be given shall be
          -------
in  writing and shall be deemed effectively given: (a) upon personal delivery to
the party notified, (b) when sent by confirmed telex or facsimile if sent during
normal  business  hours of the recipient, if not, then on the next business day,
(c)  five  days  after  having been sent by registered or certified mail, return
receipt  requested,  postage  prepaid,  or  (d)  one  day  after  deposit with a
nationally  recognized  overnight  courier,  specifying  next day delivery, with
written verification of receipt. All communications shall be sent to the Company
at  the  address  provided  in  the  Purchase  Agreement  executed in connection
herewith,  and  to  the Holder at the address provided in the Purchase Agreement
for  such  Holder,  with  a copy to John E. Tucker, Esq., 825 Third Avenue, 14th
Floor,  New  York,  New  York 10022, facsimile number (212) 541-4434, or at such
other  address  as  the  Company or the Holder may designate by ten days advance
written  notice  to  the  other  parties hereto. A Notice of Conversion shall be
deemed  given  when  made  to  the  Company  pursuant to the Purchase Agreement.

<PAGE>

     3.4  Amendment  Provision.  The  term "NOTE" and all references thereto, as
          --------------------
used  throughout  this  instrument,  shall  mean  this  instrument as originally
executed,  or  if  later  amended  or  supplemented,  then  as  so  amended  or
supplemented,  and  any successor instrument as such successor instrument may be
amended  or  supplemented.

     3.5  Assignability.  This  Note  shall  be binding upon the Company and its
          -------------
successors  and  assigns,  and  shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements  of  the  Purchase Agreement. The Company may not assign any of its
obligations under this Note without the prior written consent of the Holder, any
such  purported  assignment  without  such  consent  being  null  and  void.

     3.6  Cost  of  Collection. In case of any Event of Default under this Note,
          --------------------
the  Company  shall  pay  the  Holder  reasonable costs of collection, including
reasonable  attorneys'  fees.

     3.7  Governing  Law,  Jurisdiction  and  Waiver  of  Jury  Trial.
          -----------------------------------------------------------

          (a)  THIS  NOTE  SHALL  BE  GOVERNED  BY AND CONSTRUED AND ENFORCED IN
     ACCORDANCE  WITH  THE  LAWS  OF  THE  STATE  OF NEW YORK, WITHOUT REGARD TO
     PRINCIPLES  OF  CONFLICTS  OF  LAW.

          (b)  THE  COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL
     COURTS  LOCATED  IN  THE  COUNTY  OF NEW YORK, STATE OF NEW YORK SHALL HAVE
     EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
     THE COMPANY, ON THE ONE HAND, AND THE HOLDER, ON THE OTHER HAND, PERTAINING
     TO  THIS  NOTE  OR  ANY  OF  THE  OTHER RELATED AGREEMENTS OR TO ANY MATTER
     ARISING  OUT  OF  OR RELATED TO THIS NOTE OR ANY OF THE RELATED AGREEMENTS;
     PROVIDED,  THAT THE COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS
     --------
     MAY  HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK,
     STATE OF NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN THIS NOTE SHALL BE
                            ------- --------
     DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM BRINGING SUIT OR TAKING OTHER
     LEGAL  ACTION  IN  ANY  OTHER  JURISDICTION  TO COLLECT THE OBLIGATIONS, TO
     REALIZE  ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO
     ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE HOLDER. THE COMPANY
     EXPRESSLY  SUBMITS  AND  CONSENTS  IN  ADVANCE  TO SUCH JURISDICTION IN ANY

<PAGE>

     ACTION  OR  SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY HEREBY WAIVES
     ANY  OBJECTION  WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
     IMPROPER  VENUE OR FORUM NON CONVENIENS. THE COMPANY HEREBY WAIVES PERSONAL
                        --------------------
     SERVICE  OF  THE  SUMMONS,  COMPLAINT  AND OTHER PROCESS ISSUED IN ANY SUCH
     ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER
     PROCESS  MAY  BE  MADE  BY  REGISTERED  OR  CERTIFIED MAIL ADDRESSED TO THE
     COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE AGREEMENT AND THAT SERVICE
     SO  MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY'S ACTUAL
     RECEIPT  THEREOF  OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
     POSTAGE  PREPAID.

          (c)  THE  COMPANY  DESIRES  THAT  ITS  DISPUTES BE RESOLVED BY A JUDGE
     APPLYING  SUCH  APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION
     OF  THE  BENEFITS  OF  THE  JUDICIAL SYSTEM AND OF ARBITRATION, THE COMPANY
     HERETO  WAIVES  ALL  RIGHTS  TO  TRIAL  BY  JURY  IN  ANY  ACTION, SUIT, OR
     PROCEEDING  BROUGHT  TO  RESOLVE  ANY DISPUTE, WHETHER ARISING IN CONTRACT,
     TORT,  OR  OTHERWISE  BETWEEN  THE  HOLDER  AND THE COMPANY ARISING OUT OF,
     CONNECTED  WITH,  RELATED  OR  INCIDENTAL  TO  THE RELATIONSHIP ESTABLISHED
     BETWEEN  THEM  IN CONNECTION WITH THIS NOTE, ANY OTHER RELATED AGREEMENT OR
     THE  TRANSACTIONS  RELATED  HERETO  OR  THERETO.

     3.8  Severability.  In the event that any provision of this Note is invalid
          ------------
or  unenforceable  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  such provision which may prove invalid or unenforceable under any law
shall  not  affect the validity or enforceability of any other provision of this
Note.

     3.9 Maximum Payments. Nothing contained herein shall be deemed to establish
         ----------------
or  require  the payment of a rate of interest or other charges in excess of the
maximum  permitted  by  applicable  law.  In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum rate permitted
by  such  law,  any  payments  in  excess of such maximum rate shall be credited
against  amounts  owed  by  the  Company  to the Holder and thus refunded to the
Company.

     3.10  Security  Interest,  Guarantee  and  Mortgages.  The  Holder has been
           ----------------------------------------------
granted  a security interest (i) in certain assets of the Company and the Parent
as  more  fully described in the Master Security Agreement dated as of April 28,
2006  and  reaffirmed  by  the  Company  in  the  Reaffirmation and Ratification
Agreement  dated  as  of  the  date  hereof, (ii) in the equity interests of the
Parent  in  the Company pursuant to the Stock Pledge Agreement dated as of April
28,  2006  and  reaffirmed  by  the Parent in the Reaffirmation and Ratification
Agreement  dated  as  of the date hereof (the "Parent Reaffirmation Agreement"),
(iii)  in  the oil and gas properties of the Company pursuant to the Amended and
Restated  Mortgage,  Deed  of Trust, Security Agreement, Financing Statement and
Assignment of Production dated as of the date hereof and (iv) in the oil and gas
properties  of  the  Parent  and  its  Subsidiaries  pursuant  to an Amended and
Restated  Mortgage,  Deed  of Trust, Security Agreement, Financing Statement and
Assignment of Production dated as of April 26, 2006 and reaffirmed by the Parent
and  its  Subsidiaries in the Parent Reaffirmation Agreement. The obligations of
the  Company  under  this Note are guaranteed by the Parent and its Subsidiaries
pursuant  to  the Guaranty dated April 28, 2006 and reaffirmed by the Parent and
its  Subsidiaries  in  the  Parent  Reaffirmation  Agreement.

     3.11  Construction.  Each  party  acknowledges  that  its  legal  counsel
           ------------
participated in the preparation of this Note and, therefore, stipulates that the
rule  of  construction  that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against  the  other.

<PAGE>

     3.12  Registered  Obligation.  This  Note  is  intended  to be a registered
           ----------------------
obligation  within  the meaning of Treasury Regulation Section 1.871-14(c)(1)(i)
and  the  Company  (or its agent) shall register this Note (and thereafter shall
maintain  such  registration)  as  to  both  principal  and any stated interest.
Notwithstanding  any  document, instrument or agreement relating to this Note to
the  contrary,  transfer of this Note (or the right to any payments of principal
or  stated  interest  thereunder)  may only be effected by (i) surrender of this
Note  and either the reissuance by the Company of this Note to the new holder or
the  issuance  by  the  Company  of  a new instrument to the new holder, or (ii)
transfer  through  a book entry system maintained by the Company (or its agent),
within  the  meaning  of  Treasury  Regulation  Section  1.871-14(c)(1)(i)(B).

       [Balance of page intentionally left blank; signature page follows]

<PAGE>

IN  WITNESS  WHEREOF, the Company has caused this Secured Term Note to be signed
in  its  name  effective  as  of  this  30th  day  of  June  2006.

                                GULF  COAST  OIL  CORPORATION

                                By: Edward R. DeStefano
                                   ------------------------------------
                                   Name: Edward R. DeStefano
                                   Title: President & CEO

WITNESS:

/s/ Kimberly Newman
-------------------------------

<PAGE>

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