Document:

Exhibit 10.21

                                LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (the "License Agreement" or this "Agreement"), dated
as of the Effective Date (as hereinafter defined), by and between Titan
Technologies Incorporated, having its principal place of business at 3206
Candelaria N.E., Albuquerque, New Mexico ("Titan" or "Licensor"), and Randall
Gideon, Jim Samis, and Patrick Teagarden (collectively "Principals" or
"Licensee"), with principal executive offices at 500 West 7th Street, Suite
1400, Fort Worth, Texas 76102.

                                    RECITALS

     A.   Titan is the owner of all right, title and interest in the
          intellectual property described more completely below (the
          "Technology");

     B.   Licensee is desirous of acquiring the right to use the Technology in
          construction and operation of facilities within the Territory (as
          defined below), including sale of facilities constructed by Licensee;

     C.   This License Agreement provides for construction of one or more
          commercial Plants (the "Plants") to be owned by Licensee or an
          Operating Entity (as hereinafter defined), which will develop,
          construct, own, maintain and operate a series of Projects (as
          hereinafter defined) within the Territory using the Technology to
          recycle and convert tires and other rubber products into reusable
          products.

     D.   Titan is willing to grant to Licensee an exclusive license within the
          Territory to use the Technology in connection with the manufacture,
          sale and operation of the Projects using the Technology to recycle and
          convert tires and other rubber products into reusable products, all on
          the terms and subject to the conditions hereinafter set forth.

       NOW, THEREFORE, in consideration of the premises, the mutual promises
set forth below and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Titan and Licensee hereby agree as
follows: 1. Definitions. The following definitions shall be applicable
throughout this Agreement:

     1.1  The term "Affiliate" of any person or entity shall mean and include
          any person, corporation or other entity controlling, controlled by or
          under common control with, such person or entity.

     1.2  "Calendar Quarter" or "Quarterly" means each three-month period, or
          any portion thereof, beginning on January 1, April 1, July 1, and
          October 1.

     1.3  "Construction Commencement" shall have occurred with respect to a
          Project at such time as the contractor under the construction contract
          for such Project receives the Notice to Proceed as defined in the
          construction documents for the Project and Licensee has delivered a
          written certification to Licensor that Licensee has arranged for
          financing which Licensee in good faith reasonably believes to be
          sufficient to complete the Project.

     1.4  "Field of Use" shall mean use of the Invention or Technology or Patent
          Rights for recycle of tires and other rubber products of whatsoever
          origin into reusable products.

     1.5  "First Project" shall mean the first Project commenced by the
          Licensee. Each succeeding Project commenced thereafter shall be
          similarly referred to in chronological order.

     1.6  "Gross Sales" shall mean the cash amount actually collected on sales
          of Licensed Products, including but not limited to carbon black,
          whether activated or not, oil, gas, liquid hydrocarbons, and all other
          hydrocarbon products, steel, power, and energy. If Licensed Products
          are sold in transactions which are not bona fide arm's-length
          transactions (including transactions between entities which are
          affiliated or have related interests), Gross Sales shall be determined
          by the most recent commercial sale to an independent party.

     1.7  "Invention" or "Inventions" means the Titan process and processes for
          recycle of tires, together with equipment, reagents and proprietary
          knowledge utilized to employ the Technology and the products and
          processes related to or included therein.

     1.8  "Licensed Marks" means all service marks and trademarks (but not
          tradenames) of Licensor relating to the Invention, Licensed Processes
          or Licensed Products, including any and all service marks and
          trademarks which may be established from and after the date of this
          License Agreement.

     1.9  "Licensed Processes" shall mean the processes claimed in or utilizing
          Patent Rights or some portion thereof, together with all proprietary
          knowledge related to use of the Invention or Inventions and any
          licenses or sublicenses which Licensor has acquired or develops the
          right to use in connection with the Technology.

     1.10 "Licensed Products" shall mean products which are:

          (a)  made in accordance with or by means of Licensed Processes; or

          (b)  made utilizing any substance, device, apparatus, method, or
               process which embodies or uses the Technology or Invention,
               including improvements.

     1.11 "Patent Rights" shall mean United States Patent Numbers 5,714,043 and
          5,871,619 issued by the U.S. Patent and Trademark Office on February
          3, 1998 and February 16, 1999, respectively, and applications which
          may be filed in the United States and all foreign countries, and any
          provisional, divisional, continuation, continuation-in-part, and
          substitute applications thereof, and any patents issuing thereon and
          reissues, reexaminations, and extensions thereof, which relate to the
          Invention or Technology.

     1.12 "Project" shall mean one production train capable of handling up to
          150 tons per day of tires and other rubber products.

     1.13 The term "Technology" shall mean any and all information, patent
          applications, know-how, show-how, substances, recipes, formulas,
          compositions, devices, apparatuses, techniques, notes, books, writings
          or other documents, samples, prototypes, models, trade secrets,
          methods, practices, procedures, processes, process parameters,
          research and development information, software, algorithms, flow
          charts, data flow diagrams, state transition diagrams, contact
          diagrams, technical plans and designs, data, blueprints, inventions,
          customer and supplier lists, price lists, marketing plans, and other
          business and financial information, including improvements, changes,
          developments, and modifications thereto, which relate to the Invention
          or Inventions. Without limitation, the term "Technology" includes the
          inventions described in and covered by U.S. Patents Nos. 5,714,043 and
          5,871,619.

     1.14 The term "Territory" shall be defined under this License Agreement as
          follows: the entire geographical area comprising North America,
          Central America and South America.

2.   Grant of License: Term.

     2.1  Titan hereby grants to Licensee, and Licensee accepts, the exclusive
          right, license and privilege to use the Technology within the
          Territory in connection with the design, manufacture, construction,
          maintenance and operation of the Projects, and operation thereof to
          recycle and convert rubber products into reusable product, including
          the right to sell and distribute Licensed Products and to practice
          Licensed Processes. If a third party ("Interested Third Party")
          approaches a party to this Agreement and such Interested Third Party
          expresses a desire to construct and/or operate a Project in the
          Territory, the contacted party will promptly notify the other parties
          to this Agreement thereof; provided, however, in no event shall any
          license or sub-license be granted to such third party without the
          unanimous consent of all parties to this Agreement, which consent may
          be withheld by any party in such party's sole and absolute discretion.
          Licensee may, if it desires to do so in its sole and absolute
          discretion, license the use of its plans for the design and
          construction of its prior Projects and provide consulting services to
          prospective licensees outside the Territory on terms and for fees as
          may be mutually agreed upon between Licensee and the prospective
          licensee.

     2.2  The term of this Agreement shall commence as of the date hereof and
          shall terminate, as to each Project, upon the permanent cessation of
          operations of the Project, unless this License Agreement shall have
          been sooner terminated by Licensor or Licensee pursuant to the
          provisions of Articles 10, 11 or 28 below.

     2.3  The Licensee may not assign, transfer, sublicense or otherwise convey
          any of the rights granted to Licensee hereunder or any interest
          therein, by operation of law or otherwise, to any person, firm,
          corporation, or entity without the express prior written consent of
          Titan; provided, however, the License rights hereunder may be assigned
          to an entity to be formed by the Principals and/or to any subsidiary
          of such new entity (such entity and/or its subsidiaries being referred
          to herein as the "Operating Entities" or an "Operating Entity") if the
          Operating Entity(ies) agree(s) to be bound to the terms of this
          Agreement; provided further, however, if Principals and Titan reach
          mutual agreement as to the terms of a modified agreement to control
          with respect to the assigned interest, then the terms of such modified
          agreement shall govern with respect thereto.

     2.4  Licensee shall use the Technology only in the manner set forth in the
          Agreement and shall use the Technology only in connection with the
          design, manufacture, construction, maintenance and operation of the
          Projects to recycle and convert tires and other rubber products.
          Licensee covenants that the Projects will be designed, constructed and
          operated in accordance with all applicable environmental standards of
          the jurisdiction where the applicable Project is located.

     2.5  Except upon expiration of exclusive right, title and license as
          provided in Sections 10.1, 10.2, 10.3, 26, 27 and 28 below, the
          Licensor shall not license or otherwise grant any other party any
          right to use the Patent Rights, Licensed Marks, Licensed Processes or
          Technology within the Territory for any purpose, unless it first
          notifies Licensee of any such proposed license or use and obtains the
          written approval thereof by Licensee which approval may be withheld in
          Licensee's sole and absolute discretion. Except upon expiration of
          exclusive right, title and license as provided in Sections 10.1, 10.2,
          10.3, 26, 27 and 28 below, the Licensor agrees that Licensor shall not
          in any way use the Patent Rights, Licensed Marks, Licensed Processes
          or Technology itself within the Territory or permit any Affiliate of
          Licensor to use same, without first obtaining written consent to such
          license from Principals, during the term of this Agreement.

3.   Samples: Products

     3.1  Licensor may request, not more often than once each Calendar Quarter,
          that Licensee present to Licensor at its principal place of business
          in Albuquerque, New Mexico, at Licensee's sole cost and expense, a
          sample of each Licensed Product being manufactured or sold by or on
          behalf of Licensee and Licensee's analysis of each such product.

4.   Inspection

     4.1  The duly authorized representatives of Licensor and its guests shall
          have the right, upon reasonable advance notice to Licensee and during
          normal business hours, to inspect all facilities utilized by Licensee,
          its contractors and suppliers, in connection with the design and
          construction of Projects using the Technology and the manufacture,
          sale, storage or distribution of products pursuant hereto.

     4.2  Licensee shall market and sell Licensed Products produced at each
          Project in accordance with and in observance of all applicable laws.

     4.3  Any data reported to Titan by Licensee may be shared by Titan with
          prospective licensees so long as Licensor obtains a written agreement
          from the prospective licensee to keep such information confidential.

5.   Consideration for License

     5.1  Licensor shall receive an equity interest (expected to be in the form
          of limited partnership interests) in the Operating Entity which owns
          each Project as follows:

          (a)  First Project: 10%

          (b)  Second Project: 12%

          (c)  Third Project: 14%

          (d)  Fourth Project: 16%

          (e)  Fifth Project: 18%

          (f)  Sixth Project and each Project thereafter: 20%

          Titan's ownership interest in each such Operating Entity shall consist
          of a percentage interest equal to the applicable percentage listed
          above for the Project owned by such Operating Entity, in the capital,
          profit and loss allocations, deductions, distributions and the right
          to share the proceeds upon sale or liquidation of assets of the
          Operating Entity, which interest will not be diminished by any
          recapitalization without its consent (other than the effect of capital
          calls among owners of the Operating Entity for cash deficits), subject
          to the terms and conditions of the partnership agreement, limited
          liability company agreement or other applicable constituent document
          for such entity which are applicable to all owners; provided, however,
          that if one Operating Entity owns more than one Project, and if the
          percentage interests which are applicable to such Projects under the
          above schedule are not the same, then the Operating Entity shall keep
          separate production records for each Project owned by it, and the
          interest in profits and losses and deductions, the distribution of
          cash and the right to share the proceeds upon sale or liquidation of
          assets of the Operating Entity shall be determined separately for each
          Project and specially allocated to Licensee separately for each
          Project in accordance with the percentages provided above with respect
          to each such Project.

     5.2  All payments required hereunder shall be made in United States
          dollars.

     5.3  Subject to Paragraph 28 below, a one time license fee ("First Project
          License Fee") of $1,000,000.00 for the First Project shall be paid to
          Licensor by Licensee in 40 equal monthly installments of $25,000 each
          ("Monthly Installments"), with the first Monthly Installment due
          within 2 business days after the date the First Project has achieved
          Construction Commencement, and with such Monthly Installments to
          continue on the same day of each month thereafter until the 40th
          Monthly Installment has been paid.

     5.4  A one time license fee ("Subsequent Project License Fee") of
          $1,000,000.00 for the Second and each subsequent Project shall be paid
          to Licensor by Licensee, with each such Subsequent Project License Fee
          to be paid in 40 equal monthly installments of $25,000 each ("SP
          Monthly Installments"), with the first SP Monthly Installment due
          within 2 business days after the date the applicable Project has
          achieved Construction Commencement, and with such SP Monthly
          Installments for such Project to continue on the same day of each
          month thereafter until the 40th SP Monthly Installment has been paid
          with respect to such Project. The Subsequent License Fee for the
          Second and each subsequent Project shall not be earned or assessed
          unless and until Construction Commencement has actually occurred with
          respect to the applicable Project. The First Project License Fee and
          each Subsequent Project License Fee for all subsequent Projects may be
          collectively or generically referred to herein as the "License Fees"
          or a "License Fee".

     5.5  In addition to the License Fee, Licensee agrees to pay Licensor a
          production royalty ("Production Royalty") for the Licensed Product
          produced from each Project as follows:

          (a)  The Production Royalty shall be equal to one and 70/100 percent
               (1.7%) of Gross Sales, to be paid in arrears on a Quarterly basis
               within thirty (30) days following the end of each Calendar
               Quarter and shall be accompanied by copies of settlement sheets
               or other appropriate documentation in sufficient detail to verify
               quantity of product sold and Gross Sales Price therefore and
               shall be based solely on actual Gross Sales.

6.   Infringement. Licensee shall promptly notify Licensor of any infringement
     of the Technology whenever such infringement shall come to the Licensee's
     actual attention. After receipt of such notice from Licensee, Licensor
     shall advise Licensee of its decision either:

     6.1  to elect to take such action to stop such infringement or act as
          Licensor may deem necessary in which event: (a) Licensee shall
          cooperate fully with Licensor in connection therewith, and, if so
          requested by Licensor, shall join with Licensor as a party to any
          action brought by Licensor for such purpose; (b) Licensor shall have
          full control over any action taken, including without limitation the
          right to select counsel, to settle on any terms it deems advisable in
          its discretion, to appeal any adverse decision rendered in any court,
          to discontinue any action taken by it, and otherwise to make any
          decision in respect thereto as it in its discretion deems advisable,
          and (c) Licensor shall bear all expenses connected with the foregoing;
          or

     6.2  to elect to have Licensee take control over the action, in which
          event: (a) Licensor shall cooperate fully with Licensee in connection
          therewith, and, if so requested by Licensee, shall join with Licensee
          as a party to any action brought by Licensee for such purpose; (b)
          Licensee shall have control over any action taken, provided that
          Licensor shall not be liable for any settlement effected without its
          express prior consent; and (c) Licensee shall bear all expenses in
          connection therewith and shall reimburse any payments, including,
          without limitation, any settlement payments, made by Licensor in
          connection therewith promptly upon request. (d) Any recovery as a
          result of any such action shall belong solely to Licensor, except to
          the extent that such recovery represents damage specifically allocated
          to Licensee, in which event such specified recovery shall be paid to
          Licensee.

7.   Additional Covenants and Agreements

     7.1  Licensee shall have no right to terminate this License Agreement or to
          be released, relieved, or discharged from its obligations hereunder in
          the case of the following:

          (a)  any default, misrepresentation, negligence, gross negligence,
               misconduct, willful misconduct or other action or inaction of any
               kind by Licensee;

          (b)  the insolvency, bankruptcy, reorganization or cessation of
               existence, or discharge or forgiveness of indebtedness of
               Licensee;

          (c)  any defect in the title to, or any lien or other restriction of
               any kind upon the use of, any of the Licensed Marks for any
               reason whatsoever to the extent such defect, lien, or other
               restriction is the result of any actions taken or not taken by
               Licensee;

          (d)  any restriction, prevention or curtailment of or interference
               with the use of any of the Licensed Marks for any reason
               whatsoever to the extent such restriction, prevention,
               curtailment or interference is the result of any actions taken or
               not taken by Licensee; and

          (e)  any law now or hereafter in force.

     7.2  Licensor shall have no right to terminate this License Agreement or to
          be released, relieved, or discharged from its obligations hereunder in
          the case of the following:

          (a)  any default, misrepresentation, negligence, gross negligence,
               misconduct, willful misconduct or other action or inaction of any
               kind by Licensor;

          (b)  the insolvency, bankruptcy, reorganization or cessation of
               existence, or discharge or forgiveness of indebtedness of
               Licensor;

          (c)  any defect in the title to, or any lien or other restriction of
               any kind upon the use of, any of the Licensed Marks for any
               reason whatsoever;

          (d)  any restriction, prevention or curtailment of or interference
               with the use of any of the Licensed Marks for any reason
               whatsoever; and

          (e)  any law now or hereafter in force.

8.   Patents

     8.1  Without otherwise restricting Licensor from filing and prosecuting, at
          its own expense and cost, further domestic and foreign patent
          applications corresponding to the Licensed Products and Licensed
          Processes and maintaining any patents resulting therefrom, Licensor,
          from time to time when so requested by Licensee, shall (to the extent
          permitted by the patent law of the country in question) file, or do
          all things reasonably necessary to enable Licensee to file in the name
          of Licensor, patent applications in such country or countries covering
          the Invention, Technology, Licensed Products, and Licensed Processes
          as shall be designated by Licensee. The filing, prosecution, and
          maintenance of any such patent applications or patents, the filing of
          which shall be so requested by Licensee, shall be at the sole expense
          of Licensee.

     8.2  Licensee shall have the right, at any time and upon notice to Licensor
          of not less than one (1) month, to terminate the rights and
          obligations conferred on it under Article 8.1 above with respect to
          the prosecution and/or maintenance of any patent applications or
          patents specified in such notice, provided that any such termination
          shall not terminate Licensee's obligation to pay any and all fees,
          costs, or expenses theretofore incurred by Licensee in connection with
          such prosecution and/or maintenance. In any such event, Licensor shall
          have the right, at its option and at its sole expense, to continue
          such prosecution or maintenance through patent attorneys of its own
          choice.

9.   Grant Back and Cross-License

     9.1  If Licensee develops improvements to the Licensed Products, Licensed
          Processes, or Technology, (i) Licensee shall be required to license
          such improvements to Licensor, (ii) such improvements shall be
          licensed back to Licensee as a part of the rights licensed hereunder
          in accordance with all the terms and provisions hereof, (iii) Licensor
          shall be entitled to sublicense such improvements to other licensees
          or sub-licensees not covered by this License Agreement to the extent
          such license to other parties would not be a violation of exclusive
          license within the Territory of the Technology hereunder or otherwise
          in violation of the provisions of this License Agreement. The rights
          of Licensor with respect to such improvements shall be on a
          royalty-free basis, and Licensee shall execute such documents as may
          be reasonably required to perfect Licensor's rights hereunder,
          including confirmation that Licensor is the owner of any such
          improvements.

10.  Events of Default: Termination

     10.1 Each of the following shall constitute an event of default by Licensee
          ("Licensee Event of Default") under this License Agreement: (a) If
          Licensee shall breach in any material respect any of its monetary
          obligations under this License Agreement, and such breach is not
          remedied within fifteen (15) days after written notice thereof from
          Licensor (b) If Licensee shall breach in any material respect any of
          its non-monetary obligations under this License Agreement, and such
          breach is not remedied within thirty (30) days after written notice
          thereof from Licensor; provided, however, if such default is not for
          the payment of money and is not reasonably capable of being cured
          through Licensee's diligent and continuous effort within thirty (30)
          days after written notice thereof, then there shall not exist a
          Licensee Event of Default so long as Licensee commences to cure such
          default within 30 days after such notice, and thereafter applies its
          reasonable best efforts to cure such default, and does in fact cure
          such default within 120 days of the initial notice of default; or (c)
          If Licensee shall cease doing business as a going concern; or (d) If
          Licensee shall fail to perform or observe the Confidentiality and
          Non-Circumvention Agreement executed in connection herewith and
          attached thereto as Schedule "A" ("Confidentiality and
          Non-Circumvention Agreement"), and such failure is not remedied within
          thirty (30) days after written notice thereof from Licensor; provided,
          however, if such failure is not for the payment of money and is not
          reasonably capable of being cured through Licensee's diligent and
          continuous effort within thirty (30) days after written notice
          thereof, then there shall not exist a Licensee Event of Default so
          long as Licensee commences to cure such default within 30 days after
          such notice, and thereafter applies its reasonable best efforts to
          cure such default, and does in fact cure such default within 120 days
          of the initial notice of default.

     10.2 As used in this Agreement, the term "default" shall mean any
          condition, event or state of facts which, after notice or lapse of
          time, or both, would be an event of default.

     10.3 If a Licensee Event of Default shall occur and be continuing, Licensor
          shall be entitled to do any one or more of the following remedies: (i)
          bring an action for specific performance of Licensee's obligations
          hereunder or seek injunctive relief to enjoin Licensee from violating
          the terms of this License Agreement or otherwise seek such equitable
          relief as may be appropriate with respect to such Licensee Event of
          Default, and/or (ii) bring an action for damages against Licensee
          resulting from such Licensee Event of Default, and/or (iii) Licensor,
          at Licensor's option may pay or perform the underlying obligation for
          the account of Licensee which is the subject of the default, in which
          case Licensee shall reimburse Licensor upon demand for all expenses
          incurred by Licensor in paying or performing the underlying obligation
          for the account of Licensee, and/or (iv) terminate this License
          Agreement by delivering written notice thereof to Licensee and/or (v)
          seek such other relief as may be available at law or in equity;
          provided, however, (x) in no event shall Licensor have the right to
          terminate this License Agreement with respect to any Project
          ("Unaffected Project") existing at the time of the Licensee Event of
          Default if the default giving rise to the Licensee Event of Default
          does not directly relate to such Unaffected Project, and
          notwithstanding the termination of this License Agreement as to any
          Project or Projects, Licensee shall continue to enjoy all license
          rights hereunder as they relate to the Unaffected Project and (xx) in
          the event of a failure to the meet the Construction Commencement
          Requirements of Paragraph 27 below, Licensor's sole and exclusive
          remedies with respect to such failure shall be those set forth in said
          Paragraph 27 and (xxx) in the event of a Licensee Event of Default
          relating to Licensee's failure to meet its Required Share Obligations
          (as defined below), Licensor's sole and exclusive remedy shall be to
          terminate this Agreement as provided above.

     10.4 Each of the following shall constitute an event of default by Licensor
          ("Licensor Event of Default") under this License Agreement:

          (a)  If Licensor shall breach in any material respect any of its
               obligations or representations and warranties under this License
               Agreement, and such breach is not remedied within thirty (30)
               days after written notice thereof from Licensee; provided,
               however, if such default is not for the payment of money and is
               not reasonably capable of being cured through Licensor's diligent
               and continuous effort within thirty (30) days after written
               notice thereof, then there shall not exist a Licensor Event of
               Default so long as Licensor commences to cure such default within
               30 days after such notice, and thereafter applies its reasonable
               best efforts to cure such default, and does in fact cure such
               default within 120 days of the initial notice of default;
               provided, further however, if such breach results in Licensee
               being substantially unable to use and enjoy the Technology
               licensed hereunder, such notice and cure period shall not be
               applicable and a Licensor Event of Default shall be deemed to
               exist immediately upon the happening of such breach and Licensee
               may immediately exercise its remedies set forth below;

          (b)  If Licensor shall fail to perform or observe any material term,
               condition, agreement or covenant on its part to be performed or
               observed pursuant to this License Agreement, including the
               Confidentiality and Non-Circumvention Agreement, and such failure
               is not remedied within thirty (30) days after written notice
               thereof from Licensee; provided, however, if such failure is not
               for the payment of money and is not reasonably capable of being
               cured through Licensor's diligent and continuous effort within
               thirty (30) days after written notice thereof, then there shall
               not exist a Licensor Event of Default so long as Licensor
               commences to cure such default within 30 days after such notice,
               and thereafter applies its reasonable best efforts to cure such
               default, and does in fact cure such default within 120 days of
               the initial notice of default; provided, further however, if such
               breach results in Licensee being substantially unable to use and
               enjoy the Technology licensed hereunder, such notice and cure
               period shall not be applicable and a Licensor Event of Default
               shall be deemed to exist immediately upon the happening of such
               breach and Licensee may immediately exercise its remedies set
               forth below.

     10.5 If a Licensor Event of Default shall occur and be continuing, Licensee
          shall be entitled to do any one or more of the following remedies: (i)
          bring an action for specific performance of Licensor's obligations
          hereunder or seek injunctive relief to enjoin Licensor from violating
          the terms of this License Agreement or otherwise seek such equitable
          relief as may be appropriate with respect to such Licensor Event of
          Default, and/or (ii) bring an action for damages against Licensor
          resulting from such Licensor Event of Default, and/or (iii) if, as a
          result of such Licensor Event of Default, Licensee is unable to
          operate any of the Projects in materially the same manner as Licensee
          operated such Projects immediately prior to the Licensor Event of
          Default, Licensee, at Licensee's option may pay or perform the
          underlying obligation for the account of Licensor, in which case
          Licensor shall reimburse Licensee upon demand for all expenses
          incurred by Licensee in paying or performing the underlying obligation
          for the account of Licensor, and if Licensor fails to reimburse
          Licensee for such expenses within thirty (30) days of Licensee's
          demand therefor, Licensee may thereafter offset the Royalty due to
          Licensor by the amounts owing by Licensor and/or (iv) terminate this
          License Agreement by delivering written notice thereof to Licensor
          and/or (v) seek such other relief as may be available at law or in
          equity.

11.  Effect of Expiration or Termination

     11.1 Upon any expiration or termination of this Agreement:

          (a)  all rights of Licensee hereunder shall terminate and revert
               automatically to Licensor, and neither Licensee nor any of its
               receivers, representatives, trustees, agents, successors or
               assigns (by operation of law or otherwise) shall have any right
               to manufacture, exploit, advertise, merchandise, promote, sell,
               distribute or deal in or with Licensed Product (except to the
               extent that the Patent Rights after such termination no longer
               protect against third parties using the Technology) and Licensee
               and all of its receivers, representatives, trustees, agents,
               successors or assigns (by operation of law or otherwise) shall
               forthwith discontinue all use of the Licensed Marks and any
               variation or simulation thereof, or any mark confusingly similar
               or likely to create confusion therewith, and all references
               thereto or hereto, and all designs, Samples and labels provided
               or employed hereunder, and all designs, Samples and labels
               provided or employed hereunder, including any modifications or
               improvements thereof and any patents, trademarks, copyrights,
               trade names and other proprietary rights in connection therewith,
               and Licensee hereby irrevocably releases and disclaims any right
               or interest in or to any and all of the foregoing; and (b)
               Licensor shall forthwith have the unrestricted right to
               manufacture, advertise, merchandise, promote, sell and distribute
               Licensed Products directly or through others, and to grant
               licenses with respect to Licensed Products and the Licensed
               Marks.

12.  Insurance

     12.1 Licensee has obtained, and shall maintain at its own expense in full
          force and effect at all times during which the Licensed Products are
          being sold and used, with a reasonably acceptable insurance carrier,
          products liability insurance policy with limits of liability customary
          in the industry, but only to the extent such insurance is readily
          available at commercially reasonable prices in the jurisdictions where
          the Licensed Products are being sold. Such insurance shall be for the
          benefit of and shall name as co-insured Licensor, its affiliates and
          subsidiaries, and their respective officers, directors, controlling
          persons, successors in interest and assigns, and shall provide for at
          least thirty (30) days' prior written notice by the carrier thereof
          (each an "Insurance Notice") to Licensor and Licensee of the
          cancellation or modification thereof.

13.  Representation and Warranties

     13.1 Licensee hereby represents and warrants to Licensor, as of the
          Effective Date, as follows:

          (a)  Licensee consists of natural persons of majority age with
               capacity to enter into this Agreement.

          (b)  Any Operating Entity will be limited partnership, limited
               liability company or other entity duly organized, validly
               existing and in good standing under the laws of the jurisdiction
               organized.

          (c)  Neither the execution, delivery nor performance of this Agreement
               by Licensee will, with or without the giving notice or passage of
               time, or both, conflict with, or result in a default or loss of
               rights under, any provision of any of the constituent documents
               of any Operating Entity or under any contract or agreement under
               which Licensee is a party or by which it or any of its properties
               may be bound.

          (d)  Licensee has full power and authority to enter into this
               Agreement and to carry out the transactions contemplated thereby
               in accordance with its terms; the execution, delivery, and
               performance of this Agreement by Licensee have been duly and
               properly authorized by all necessary actions; and this Agreement
               constitutes the valid and binding obligation of Licensee
               enforceable in accordance with its terms.

          (e)  Licensee has reviewed the terms and conditions of this Agreement
               and Licensee has found no provision which would result on the
               invalidity, unenforceability, impossibility or illegality of
               performance of this Agreement for any reason, and Licensee will
               not assert same in the future.

     13.2 Licensor hereby represents and warrants to Licensee that, as of the
          Effective Date:

          (a)  Licensor is a corporation duly organized, validly existing and in
               good standing under the laws of The State of New Mexico.

          (b)  Neither the execution, delivery nor performance of this Agreement
               by Licensor will, with or without the giving notice or passage of
               time, or both, conflict with, or result in a default or loss of
               rights under, any provision of the Certificate of Incorporation
               or By-Laws of Licensor or under any contract or agreement under
               which Licensor is a party or by which it or any of its properties
               may be bound.

          (c)  Licensor has full power and authority to enter into this
               Agreement and to carry out the transactions contemplated thereby
               in accordance with its terms; the execution, delivery, and
               performance of this Agreement by Licensor have been duly and
               properly authorized by all necessary corporate actions; and this
               Agreement constitutes the valid and binding obligation of
               Licensor enforceable in accordance with its terms.

          (d)  The granting of the rights hereunder to Licensee and the use of
               the Technology or any aspect thereof by Licensee pursuant to the
               terms hereof will not result in a breach of, or constitute a
               default under any agreement or restriction to which Licensor is a
               party or by which Licensor may be bound or affected, nor shall
               the use of the Technology by Licensee pursuant to the terms
               hereof (including Licensed Processes, Inventions and Licensed
               Products) give rise to any claim of infringement by any person,
               and no person is claiming or has a right to claim any
               infringement with respect to such use of the Technology or any
               aspect thereof.

          (e)  Licensor is the owner of the entire right, title, and interest in
               and to the Patent Rights and Technology.

          (f)  Licensor has the sole right to grant licenses under the Patent
               Rights and Technology.

          (g)  There are no license rights or any other rights in favor of any
               other person or entity within the Territory under the Patent
               Rights or Technology or any aspect thereof.

          (h)  There are no claims, actions, suits, proceedings or
               investigations pending or threatened before any federal, state or
               local court or governmental or regulatory authority, domestic or
               foreign, or before any arbitrator of any nature, brought by or
               against Licensor or any of its Affiliates or any of their
               respective officers, directors, employees, agents or affiliates
               involving, affecting or relating to any of the Patent Rights,
               Technology, Licensed Marks, Licensed Processes or Licensed
               Products, nor does there exist any fact which might reasonably be
               expected to give rise to any such suit, proceeding, dispute or
               investigation.

          (i)  Licensor has reviewed the terms and conditions of this Agreement
               and Licensee has found no provision which would result on the
               invalidity, unenforceability, impossibility or illegality of
               performance of this Agreement for any reason, and Licensor will
               not assert same in the future.

               Licensor agrees to indemnify, defend and hold Licensee harmless
               of, from, against and in respect of any and all losses, damages,
               liabilities, claims, fines, taxes, penalties and other costs and
               expenses including, but not limited to, all reasonable attorney's
               fees, expenses and court costs, and all judgments, awards,
               settlements and other costs and expenses incurred in connection
               with any actual, pending or threatened suit, proceeding or claim,
               incurred or sustained by the Licensee, directly or indirectly,
               arising out of any misrepresentation, breach or non-fulfillment
               of the above representations and warranties by Licensor.

14.      Disclaimer
         ----------

     14.1 LICENSOR MAKES NO WARRANTIES OR REPRESENTATIONS REGARDING THE
          TECHNOLOGY, LICENSED PRODUCTS, LICENSED PROCESSES, PATENT RIGHTS,
          LICENSED MARKS, OR CONFIDENTIAL INFORMATION EXCEPT AS SPECIFICALLY SET
          FORTH IN THIS AGREEMENT. EXCEPT AS SPECIFICALLY SET FORTH IN THIS
          AGREEMENT, LICENSOR HEREBY SPECIFICALLY DISCLAIMS AND EXCLUDES ANY
          WARRANTIES, EXPRESS OR IMPLIED, PERTAINING TO ANY CAPABILITIES,
          LIMITATIONS, RISKS, OR PARTICULAR APPLICATIONS OF THE TECHNOLOGY,
          LICENSED PRODUCTS, LICENSED PROCESSES, PATENT RIGHTS, LICENSED MARKS,
          OR CONFIDENTIAL INFORMATION. LICENSOR FURTHER HEREBY DISCLAIMS AND
          EXCLUDES ALL IMPLIED WARRANTIES, INCLUDING ANY WARRANTY OF
          MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NO TECHNICAL
          INFORMATION OR OTHER COMMUNICATION HEREUNDER SHALL BE DEEMED A
          WARRANTY OR REPRESENTATION EXCEPT TO THE EXTENT IT IS SPECIFICALLY
          DENOMINATED AS SUCH. LICENSEE HAS TECHNICAL EXPERTISE AND EXPERIENCE
          IN THE FIELDS OF USE CONTEMPLATED FOR ALL LICENSED MATTER UNDER THIS
          AGREEMENT, AND PRIOR TO ENTERING INTO THIS LICENSE AGREEMENT LICENSEE
          HAS EXTENSIVELY USED, INVESTIGATED AND FAMILIARIZED ITSELF WITH ALL
          LICENSED MATTER UNDER THIS AGREEMENT, AND HAS FULLY SATISFIED ITSELF
          OR WILL UNDERTAKE TO FULLY SATISFY ITSELF IN THE FUTURE AS TO ALL
          ASPECTS OF SUCH LICENSED MATTER, INCLUDING ALL CAPABILITIES,
          LIMITATIONS, RISKS OR PARTICULAR APPLICATIONS. LICENSEE ACCEPTS THE
          RISKS OF THIS LICENSE, FORESEEN OR UNFORESEEN, AND AGREES THAT ALL OF
          ITS OPERATIONS AND SUBLICENSING PURSUANT TO THIS AGREEMENT SHALL BE AT
          ITS OWN RISK. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LICENSOR SHALL
          NOT BE LIABLE FOR ANY DAMAGE OR LOSS OF ANY KIND, WHETHER DIRECT OR
          INDIRECT, INCIDENTAL OR CONSEQUENTIAL, UNDER ANY THEORY OF LIABILITY,
          ARISING OUT OF OR RELATING TO THE USE OF THE TECHNOLOGY, LICENSED
          PRODUCTS, LICENSED PROCESSES, PATENT RIGHTS, LICENSED MARKS, OR
          CONFIDENTIAL INFORMATION.

15.  Brokers.

     15.1 Each of Licensor and Licensee hereby represents and warrants to the
          other that it has not employed or dealt with any broker or finder in
          connection with this Agreement or the transactions contemplated
          hereby, and agrees to indemnify the other and hold it harmless from
          any and all liabilities (including, without limitation, reasonable
          attorneys' fees and disbursements paid or incurred in connection with
          any such liabilities) for any brokerage commissions or finders fees in
          connection with this agreement or the transactions contemplated hereby
          insofar as such liabilities shall be based on the arrangements or
          agreements made by it or on its behalf.

16.  Notices

     16.1 All reports, communications, requests or notices required by or
          permitted under this Agreement to be in writing and shall be deemed to
          be duly given on the date same is hand delivered, or when sent
          facsimile copier with receipt confirmed, or when sent by an
          internationally recognized overnight courier service, to the party
          concerned at the following address:

         If to Licensor:        3206 Candelaria N.E.
                                Albuquerque, New Mexico USA 87107
                                Attention: President
                                tel: +505 884-0272
                                fax: +505 881-7113

         If to Licensee:        500 West 7th Street, Suite 1400
                                Fort Worth, Texas 76102
                                Attn: Martha Granger
                                Tel: +817 891-4588
                                Fax: +817 332-3329

          Any party may change the address to which such notices and
          communications shall be sent by written notice to the other parties,
          provided that any notice of change of address shall be effective only
          upon receipt.

17.  Integration. This License Agreement sets forth the entire agreement and
     understanding between the parties relating in any way to the use of the
     Technology, Licensed Marks, Licensed Process, Inventions and Licensed
     Products, or to any other subject matter contained herein and merges all
     prior discussions, arrangements and agreements between them.

18.  Amendments.

     18.1 This Agreement may not be amended or modified except by written
          instrument signed by each of the parties thereto.

19.  Relationship of Parties.

     19.1 Nothing herein contained shall be construed to constitute the parties
          hereto as partners or as joint venturers except to the extent that
          Licensor is contemplated as being an equity participant in Operating
          Entities pursuant to Paragraph 5.1 of this Agreement, or either as
          agent of the other. Neither party hereto by virtue hereof shall have
          the right or authority to act for or to bind the other in any way or
          to sign the name of the other or to represent that the other is in any
          way responsible for the acts or omissions of the other.

20.  Interpretation.

     20.1 This License Agreement has been negotiated and drafted by both parties
          in the English language and Licensee acknowledges that it has been
          reviewed by legal counsel of its choice, and that use of the English
          language (including use of the English language in any arbitration
          proceedings as set forth below) does not prejudice Licensee's
          understanding of the terms and conditions contained herein. The
          headings given to the paragraphs of this Agreement are for the
          convenience of the parties only and are not to be used in any
          interpretation of this Agreement.

21.  Jurisdiction.

     21.1 Licensor and Licensee hereby agree that this License Agreement is
          governed by the laws of New Mexico, except the Rules of Private
          International Law (conflict of laws) and thereby any renvoi to any
          other jurisdiction or law shall be excluded.

22.  Severability.

     22.1 In the event that any one or more provisions of this Agreement shall
          be held invalid, illegal or unenforceable in any respect, the
          validity, legality or enforceability of the remaining provisions
          contained herein shall not in any way be affected or impaired thereby.

23.  Waiver.

     23.1 No failure or delay on the part of either party in exercising any
          power or right under this Agreement shall operate as a waiver thereof,
          nor shall any single or partial exercise of any such power or right to
          preclude any other or further exercise thereof or the exercise of any
          other power or right. No waiver by either party of any provision of
          this Agreement, or of any breach or default, shall be effective unless
          in writing and signed by the party against whom such waiver is to be
          enforced. All rights and remedies provided for herein shall be
          cumulative and in addition to any other rights or remedies such
          parties may have at law or in equity.

24.  Arbitration.

     24.1 In the event of any dispute hereunder and Licensor and Licensee shall
          not reach agreement within thirty (30) days of such dispute, either
          party may submit the issue to arbitration in accordance with the
          provisions of this Article.

     24.2 Any disputes concerning this License Agreement shall be exclusively
          and finally settled by an arbitration tribunal constituted and ruling
          under the Rules of Conciliation and Arbitration of the International
          Chamber of Commerce composed of three arbitrators appointed in
          accordance with said rules. The parties agree that the place of
          arbitration shall be Albuquerque, New Mexico and that the language of
          any such arbitration proceedings shall be English.

     24.3 Nothing contained herein shall be deemed to restrict the right of
          Licensor to seek other remedies in the event that a dispute relates to
          alleged violation of the Confidentiality and Non-Circumvention
          Agreement.

     24.4 No provision of, nor the exercise of any rights under, this Article 24
          shall limit the right of any party, and the parties shall have the
          right during any dispute, to seek, use, and employ ancillary or
          preliminary remedies, judicial or otherwise, for the purposes of
          realizing upon, preserving, protecting, or foreclosing upon any
          property which is involved in a dispute, including, without
          limitation, rights and remedies relating to: (a) foreclosing against
          any real or personal property collateral or other security by the
          exercise of a power of sale under a deed of trust mortgage, or other
          security agreement or instrument, or applicable law; (b) exercising
          self help remedies (including set off rights); or (c) obtaining
          provisions or ancillary remedies such as injunctive relief,
          sequestration, attachment, garnishment, or the appointment of a
          receiver from a court having jurisdiction before, during, or after the
          pendency of any arbitration. The institution and maintenance of an
          action for judicial relief or pursuit of provisional or ancillary
          remedies or exercise of self help remedies shall not constitute a
          waiver of the right of any party, including the plaintiff, to submit
          the dispute to arbitration nor render inapplicable the compulsory
          arbitration provisions hereof. In disputes involving indebtedness or
          other monetary obligations, each party agrees that the other party may
          proceed with arbitration against all liable persons, jointly and
          severally, or against one or more of them, less than all, without
          impairing rights against other liable persons.

25.  Attorneys Fees. If any action at law or in equity is necessary to enforce
     or interpret the terms of this Agreement, including any arbitration
     proceeding as required or permitted herein, the prevailing party or parties
     shall be entitled to reasonable attorney's fees, costs and necessary
     disbursements in addition to any other relief to which such party or
     parties may be entitled.

26.  Stock Purchase Matters.

     26.1 Licensor represents and warrants to Licensee that, as of the Effective
          Date hereof,

          (i)  Licensor is authorized to issue, in the aggregate, 50,000,000
               shares of common stock, no par value per share (herein called
               "Common Stock"),

          (ii) each share of such Common Stock has identical rights and
               privileges in every respect,

          (iii) there is no other class of stock issued or authorized to be
               issued by Licensor,

          (iv) out of the total authorized shares of Common Stock, no more than
               44,786,658 shares have been issued,

          (v)  there are at least 5,213,342 remaining authorized but unissued
               shares of Common Stock (the "Authorized But Unissued Shares"),
               and

          (vi) there are no options, warrants, or other similar rights to
               acquire shares of Common Stock that, upon the exercise or
               conversion thereof, would reduce the number of Authorized But
               Unissued Shares below that set forth in clause (v) above.
               Licensor further represents, warrants, and covenants to Licensee
               that

               (A)  all of the information set forth in all reports filed by
                    Licensor pursuant to the Securities Act of 1933, as amended,
                    and to the Securities Exchange Act of 1934, as amended, is
                    and will be true and correct in all material respects at the
                    time of filing,

               (B)  Licensor's issuance of shares of Authorized But Unissued
                    Shares to Licensee in accordance with the terms and
                    conditions of this Agreement does not and will not violate
                    any preemptive or other rights of any person,

               (C)  all shares of Authorized But Unissued Shares issued and to
                    be issued to Licensee in accordance with the terms and
                    conditions of this Agreement shall, upon such issuance, be
                    validly issued, fully paid, and non-assessable, and shall be
                    issued free and clear of any liens, encumbrances or other
                    claims whatsoever,

               (D)  Licensor shall at all times have duly authorized a
                    sufficient number of shares of Common Stock to allow
                    Licensee to purchase all of the Authorized But Unissued
                    Shares that Licensee is entitled to purchase pursuant to the
                    terms and conditions of this Agreement, and

               (E)  Licensor shall at all times make publicly available such
                    information as is necessary to enable Licensee to sell under
                    Rule 144 of the Securities Act of 1933, as amended,
                    Authorized But Unissued Shares issued to Licensee pursuant
                    to this Agreement.

     26.2 Licensee shall have the following obligations ("Required Share
          Obligations") relative to the purchase of shares of the Authorized But
          Unissued Shares:

          (a)  Within Ninety (90) days after the Effective Date of this
               Agreement ("First Purchase Deadline"), Licensee shall purchase
               $25,000.00 of the Authorized But Unissued Shares from Licensor at
               the Market Price (as hereinafter defined) existing as of the day
               the Required Share Notice (as hereinafter defined) with respect
               thereto is delivered by Licensee to Licensor. The "Market Price"
               shall be determined in all cases as of 5:00pm Fort Worth, Texas
               time on the date for which a Market Price determination is
               required ("Determination Point in Time"), and shall mean, as of
               the applicable Determination Point in Time, the sales price per
               share for the then most recent arms length sale for cash of
               Common Stock by Licensor or by an existing stockholder of
               Licensor, in either case to a third party who is not a party to
               this Agreement or an affiliate of Licensor, as certified to
               Licensee in each case in writing by Licensor's chief executive
               officer or chief financial officer (which certification shall
               include such supporting documentation and other information and
               be in such format as Licensee reasonably shall require to allow
               Licensee to determine the basis for the calculation of the Market
               Price and the correctness of such calculation). A "Required Share
               Notice" shall mean a written notice from Licensee to Licensor
               identifying the total dollar amount for shares Licensee desires
               to purchase at any given time toward satisfaction of its
               obligations hereunder, which Required Share Notice shall include
               a check or other transfer of funds from Licensee for the total
               purchase price ("Stock Payment Amount") specified in the Required
               Share Notice for the shares of Common Stock to be purchased
               pursuant to such Required Share Notice (with the actual number of
               shares of Common Stock so purchased, calculated based on the
               Stock Payment Amount and the applicable Market Price, being
               referred to herein as the "Purchased Shares").

          (b)  Within each of the succeeding nine (9) thirty day periods
               following the First Purchase Deadline (each a "Succeeding
               Purchase Deadline") (for a period of nine months after the First
               Purchase Deadline) Licensee shall purchase an additional
               $25,000.00 of Authorized But Unissued Shares at the Market Price
               on the day(s) the Required Share Notice with respect thereto is
               delivered by Licensee to Licensor. Accordingly, by the end of the
               first year after the Effective Date, Licensee will have purchased
               a total of $250,000 of the Authorized But Unissued Shares from
               Licensor pursuant to the forgoing schedule. (The First Purchase
               Deadline and the Succeeding Purchase Deadlines may be generically
               referred to as "Purchase Deadline(s)")

          (c)  Licensee may purchase Authorized But Unissued Shares from Titan
               at any time prior to the dates designated above, and any
               Authorized But Unissued Shares purchased in excess of the shares
               required to be purchased under the above schedule shall be fully
               credited toward the shares required to be purchased by Succeeding
               Purchase Deadlines until fully applied.

          (d)  The obligation of Licensee to purchase Titan stock will cease if,
               at any time during the nine month period after the First Purchase
               Deadline, Licensee causes Construction Commencement to occur with
               respect to the First Project. Within 5 days after delivery of any
               Required Share Notice (with payment of the Stock Payment Amount)
               by Licensee to Licensor, Licensor shall send notice to Titan's
               transfer agent to authorize issuance of the number of shares to
               Licensee covered by the Required Share Notice at issue.

     26.3 In additional to and separate from the Required Share Obligations,
          upon the Effective Date and for a period of three months after the
          Effective Date, Licensee shall have the option and right ("Option") to
          purchase up to 750,000 additional Common Shares (in addition to shares
          acquired under Section 26.2 above) (the "Optioned Shares") at a set
          per share price of $0.10 per share. The Option may be exercised with
          respect to all or any portion of the Optioned Shares by written notice
          ("Exercise Notice") from Licensee to Licensor, together with a check
          for the total purchase price due for the shares covered by the
          Exercise Notice, and Licensee shall have the right to exercise the
          Option periodically so as to acquire the Optioned Shares in lots as
          selected and specified by Licensee from time to time by separate
          Exercise Notices to Licensor identifying the number of shares Licensee
          desires to acquire with respect to each Exercise Notice. The shares of
          Common Stock so purchased by exercise of the Option are referred to
          herein as the "Purchased Option Shares".

     26.4 Titan shall take all reasonable efforts to ensure that actual stock
          certificates are issued by the transfer agent for the Purchased Shares
          or Purchased Option Shares, within 15 days after the applicable
          Required Share Notice or Exercise Notice, as applicable, but in any
          event shall cause such stock certificates to be issued and delivered
          to Licensee at the earliest possible time.

     26.5 The Licensee agrees for itself and its principal members that each and
          every one of them is an accredited investor as that term is defined in
          Section 230.501(a) of Regulation D of the Securities Act of 1933,
          that they are sophisticated, well informed investors as that term is
          defined in Rule 109.13 of the Texas Administrative Code and that this
          offering meets the requirements of Regulation D of the Securities Act
          of 1933 and Rule 109.13 of the Texas Administrative Code. Licensee
          acknowledges that Licensee has received copies of Section 5 of the
          Texas Securities Act and Section 109.13 of the Texas Administrative
          Code, a description of New Mexico exemptions for limited offering for
          small businesses and Regulation D of the Securities Act of 1933.
          Licensee agrees that Licensee is acquiring the shares for investment
          and not with a view to further distribution, that Licensee will sign a
          subscription agreement containing customary terms and conditions,
          including an acknowledgement that the shares are not registered and
          that in order to sell said shares the Licensee will need to either (i)
          register the shares or sell them pursuant to available state and
          federal exemptions from registration before they can be sold or (ii)
          sell the shares in accordance with Rule 144 of the Securities Act of
          1933 after waiting the required time periods.

     26.6 Licensor will pay the costs for issuance of all Purchased Shares and
          Purchased Option Shares, under the terms stated in Section 26.5 above.
          Licensee will be liable for any costs associated with any subsequent
          sales of any the Titan shares Licensee acquires pursuant to this
          Agreement.

     26.7 Licensor shall not sell any Authorized But Unissued Shares to any
          other party which would or could result in Licensee being unable to
          acquire the required number of Common Shares pursuant to the Required
          Share Obligations or which would or could result in Licensee being
          unable to acquire all of the Optioned Shares.

27.  Project Schedule. Licensee agrees that Licensee will cause Construction
     Commencement to occur with respect to Projects in accordance with the
     following requirements ("Construction Commencement Requirements") set forth
     in this Paragraph. Construction Commencement shall have occurred with
     respect to the First Project within 12 months after the Effective Date of
     this Agreement. Thereafter, Licensee will cause Construction Commencement
     to occur for additional Projects so that the following schedule will be
     adhered to within the following time periods:

     (a)  There shall have been a cumulative total of at least 3 Projects
          (including the First Project) for which Construction Commencement
          shall have occurred by the date which is three years after the
          Effective Date hereof.

     (b)  There shall have been a cumulative total of at least 7 Projects
          (including the First Project and all other prior Projects) for which
          Construction Commencement shall have occurred by the date which is
          four years after the Effective Date. (

     c)   There shall have been a cumulative total of at least 13 Projects
          (including the First Project and all other prior Projects) for which
          Construction Commencement shall have occurred by the date which is
          five years after the Effective Date.

     (d)  There shall have been a cumulative total of at least 20 Projects
          (including the First Project and all other prior Projects) for which
          Construction Commencement shall have occurred by the date which is six
          years after the Effective Date.

     (e)  For the year beginning on the sixth anniversary of the Effective Date,
          and for each year commencing on each anniversary date thereafter (each
          a "Subsequent Year"), Construction Commencement shall have occurred
          with respect to at least 7 additional Projects during such Subsequent
          Year; provided, however, so long as there is a zero or positive Excess
          Project Balance at the end of any Subsequent Year, then Licensee shall
          be deemed to have satisfied its obligations for such Subsequent Year,
          regardless of whether there has been an actual Commencement of
          Construction for 7 Projects during such year. "Excess Project Balance"
          shall, at the end of any Subsequent Year, be equal to (i) the number
          of Projects in excess of 20 for which Construction Commencement has
          occurred as of the sixth anniversary of the Effective Date, less (ii)
          the required number of Projects for which Construction Commencement is
          required to have occurred hereunder for the Subsequent Year at issue
          and all prior Subsequent Years, plus (iii) the number of Projects for
          which Construction Commencement has actually occurred during the
          Subsequent Year at issue and all prior Subsequent Years.

         Each date on which a determination as to whether the Construction
         Commencement Requirements have been met as provided above is referred
         to herein as a "Compliance Determination Date".

28.  License Exclusivity Upon Failure to Comply. Notwithstanding the provisions
     of Paragraphs 2.1 and 2.5 herein above, if Construction Commencement
     Requirements as provided above are not adhered to (subject to reasonable
     extension for a Force Majeure Situation, as hereinafter defined) or if
     Licensee does not meet the share purchase provision of Paragraph 26.2
     above, then the exclusive license granted by paragraph 2.1 herein shall
     cease and become non-exclusive and Licensor will have the right to license
     the Technology anywhere in the Territory (referred to herein as an
     "Exclusivity Forfeiture"); provided, however, (i) even in the event of an
     Exclusivity Forfeiture, the license rights granted to Licensee hereunder
     shall remain in effect with respect to any then existing Projects, but such
     continuing license shall be non-exclusive and Licensor may grant other
     license rights to other parties within the Territory (so long as same do
     not purport to limit or impair Licensee's continuing non-exclusive license
     rights); and (ii) in the event that the Construction Commencement
     Requirements are not met as of any Compliance Determination Date, then
     Licensee shall have the option to nonetheless maintain its exclusive
     license rights hereunder by making payments ("Exclusivity Payments") to
     Licensee in the amount of $25,000 per month per Project for which the
     Construction Compliance Requirements are not met (commencing on the date
     which is one month after the Compliance Determination Date for which the
     Construction Commencement Requirements were not satisfied), and continuing
     until such time as a sufficient number of Projects have achieved
     Construction Commencement at any point in time so that the Construction
     Commencement Requirements will have been satisfied as of the Compliance
     Determination Date which occurs next after such point in time, and so long
     as such Exclusivity Payments are so paid Exclusivity Forfeiture shall be
     deemed not to have occurred and Licensor shall not have the right to grant
     any other license rights to other parties within the Territory; and (iii)
     with respect to any failure to meet the share purchase provisions of
     Paragraph 26.2, an Exclusivity Forfeiture shall not be deemed to have
     occurred unless and until Licensor has delivered written notice to Licensee
     of Licensee's failure to timely make such purchases and Licensee fails to
     cure its failure within 15 days after such notice. All Exclusivity Payments
     shall be credited and applied toward the next License Fees which shall
     become due and payable until such amounts are fully applied against same.

29.  Force Majeure. A "Force Majeure Situation" shall be deemed to exist
     hereunder with respect to any delay or failure of performance resulting
     from acts of God or the public enemy, expropriation or confiscation of
     facilities, compliance with any order or mandatory request of any
     applicable governmental authority, acts of declared or undeclared war,
     public disorder, rebellion, sabotage, revolution, earthquake, fire, flood
     or other casualty, pestilence, riots, strikes or lockouts or labor
     disputes, embargo, governmental restrictions, emergency acts, or the
     inability of a party to obtain necessary materials or equipment due to
     future laws, rules or regulations of governmental authorities, but
     excluding causes which can be controlled by the expenditure of money in
     accordance with good business practices, and only so long as the
     non-performing party diligently and continuously attempts to cure the
     non-performance caused by the Force Majeure Situation (giving consideration
     to the effect of the Force Majeure Situation on such party's overall
     business operations).

30.  Feasibility. For a period of 90 days after the Effective Date hereof (the
     "Feasibility Period"), Licensee will evaluate the feasibility of the
     Projects contemplated hereunder. If Licensee is not satisfied in its sole
     discretion as to the feasibility of the Projects, then Licensee may
     terminate this Agreement by sending written notice thereof to Licensor on
     or before expiration of the Feasibility Period, whereupon this Agreement
     shall terminate and neither party shall have any further rights or
     obligations hereunder.

31.  Effective Date. The date on which this Agreement is executed by the last to
     sign of the Licensor and Licensee, as indicated beneath their respective
     signatures below, shall be the "Effective Date" of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the Effective Date.

--------------------------------------------------------------------------------

LICENSOR:                                       LICENSEE:

TITAN TECHNOLOGIES, INC.

By:  /s/ Ronald Wilder                             /s/ Randall C. Gideon
   ---------------------------------               -----------------------------
                                                   Randall C. Gideon
Name:  Ronald Wilder
      -------------------------------
Title: President
       ------------------------------
Date Executed: May 17, 2005
               ----------------------
                                                /s/ Patrick A. Teagarden
                                                --------------------------------
                                                Patrick A. Teagarden

                                                /s/ Jim Samis
                                                --------------------------------
                                                Jim Samis

                                                Date Executed: May 16, 2005
                                                               -----------------EXHIBIT 10.1

                           PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (this "Agreement") dated May 16, 2005, is
by and between TUCKER FAMILY INVESTMENTS, LLLP, a Colorado limited liability
limited partnership, 12741 E. Caley, Unit 142, Englewood, Colorado 80111
("Tucker"); DNR OIL & GAS, INC., a Colorado corporation, 12741 E. Caley, Unit
142, Englewood, Colorado 80111 ("DNR"); and TINDALL OPERATING CO., a Colorado
corporation, 12741 E. Caley, Unit 142, Englewood, Colorado 80111 ("Tindall"),
(Tucker, DNR and Tindall may hereinafter collectively be referred to as
"Seller"); and COLORADO OIL AND GAS, INC., 7260 Osceola Street, Westminster,
Colorado 80030 ("Buyer"). The transaction contemplated by this Agreement may be
referred to as the "Transaction."

                                    RECITALS

     A. The entities comprising Seller own certain oil and gas properties and
related interests (collectively, the "Properties" as defined in Section 1.1
below).

     B. Each of the entities comprising Seller has authorized Tindall to act for
them and on their behalf in connection with all matters related to this
Agreement.

     C. Seller desires to sell, assign, and convey to Buyer and Buyer desires to
purchase and accept the Properties from Seller.

     D. To accomplish the foregoing, the parties wish to enter into this
Agreement.

                                    AGREEMENT

     NOW, THEREFORE, for $100.00, the mutual covenants and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, Seller and Buyer agree as follows:

                                    SECTION I
                           TRANSFER OF THE PROPERTIES

     1.1 Sale and Purchase. Except for the Excluded Properties described in
Section 1.2, upon the terms and conditions hereinafter set forth, Seller agrees
to sell, assign, and convey to Buyer and Buyer agrees to buy and accept from
Seller the following:

     (a)  All rights, titles and interests of Seller, of whatever kind or
          character, whether legal or equitable, and whether vested or
          contingent, in and to the oil, gas and other minerals in and under or
          that may be produced from the lands described in Exhibit A hereto (the
          "Lands") including, without limitation, interests in oil, gas and/or
          mineral leases described on Exhibit A (the "Leases") covering such
          Lands, overriding royalties, production payments and net profits
          interests in such Lands or such Leases, and fee mineral interests, fee
          royalty interests and other interests in such oil, gas and other
          minerals, subject to any depth limitations that may be set forth in
          such Exhibit A or of record;

     (b)  All rights, titles and interests of Seller in and to, or otherwise
          derived from, all presently existing and valid oil, gas and/or mineral
          unitization, pooling, and/or communitization agreements, declarations
          and/or orders covering the Leases and Lands and the units created
          thereby, including, without limitation, all units formed under orders,
          rules regulations, or other official acts of any federal, state, or
          another authority having jurisdiction, voluntary unitization
          agreements, designations and/or declarations, relating to the Lands;

     (c)  All of Seller's right, title and interest in the fixtures, personal
          property and equipment located on the Lands and used in the operation
          of the wells as presently located on the lands including without
          limitation well equipment, water wells, casing, tanks, boilers,
          buildings, tubing, pumping units, motors, pipelines, gathering lines,
          power lines, and all other machinery, equipment, ancillary facilities
          and improvements used in the operations (the "Equipment"). The
          Equipment does not include (i) any vehicles, tools, pulling machines,
          warehouse stock, equipment or material temporarily located on the
          Lands; (ii) any leased personal property located on the Lands; (iii)
          or any equipment, pipelines, fixtures, facilities or interest in land
          owned by any contractor, purchaser or transporter of oil or gas from
          the Lands, (iv) compressor and production unit from the UPRC.

     (d)  All of Seller's right, title and interest in all contracts and
          contractual rights insofar and only insofar as they relate to the
          Leases and Equipment including without limitation, unit agreements,
          surface leases, oil and gas leases and/or subleases and assignments,
          mineral deeds, royalty deeds, operating agreements, easements, right
          of ways, farmout and farmin agreements, and all similar rights leases
          or owned by Seller, and oil and gas sales, purchase, exchange and
          processing contracts and agreements, whether of record or not (the
          "Contracts").

     (e)  All of the "Records," as that term is defined in Section 2.1.

     Seller's interest in the Lands, Leases, Wells, Equipment, Contracts and
Records, except the Excluded Properties, shall hereinafter together be called
the "Properties."

     1.2 Reservation. Notwithstanding the foregoing, Seller hereby reserves and
excepts from the Properties the following interests (collectively the "Reserved
Properties"):

     (a)  Hanavan Lease/Overriding Royalty/Option/Reassignment.

          (i)  Hanavan ORRI. Seller hereby reserves for itself and its
               successors and assigns an overriding royalty interest in and to
               the Hanavan Lease (the Oil and Gas Lease dated 5/22/72 from
               Champlin Petroleum Company, dated 5/22/72, recorded in Book 188,
               Page 177), equal to 7.5% of 8/8ths (with such overriding royalty
               interests being the "Hanavan ORRI").

          (ii) Purchase Option. Buyer shall have the exclusive option to
               purchase the Hanavan ORRI from Seller for $500,000.00 on or
               before June 1, 2007, such option to be exercisable one time for
               the entire Hanavan ORRI (the "Hanavan Option"). If Buyer elects
               to exercise the Hanavan Option, it shall give Seller written
               notice of the intent to exercise the Hanavan Option, and
               consummate the purchase of the Hanavan ORRI within 15 business
               days of giving Seller notice of exercise of the Hanavan Option.
               If Buyer fails to consummate the purchase of the Hanavan Option
               with the 15 business day period, or fails to timely exercise the
               Hanavan Option, Buyer shall have waived its right to exercise the
               Hanavan Option.

          (iii) Reassignment Obligation. Buyer shall reassign to Seller, for no
               consideration, the undrilled portions of the Hanavan Lease if
               Buyer has not drilled and completed two wells as producing wells
               (or drilled and plugged and abandoned such wells); one such well
               in the NW/4SW/4 of Section 21, T13S, R44W, and one such well in
               the SE/4NW/4 of Section 21, T13S, R44W, such wells to be drilled
               by Buyer on or before June 1, 2007. For the purposes of this
               Reassignment Obligation, the undrilled portions of the Hanavan
               Lease shall be those lands outside the drilling and spacing unit
               for the wells capable of production in paying quantities located
               on the Hanavan Lease as of June 1, 2007.

     (b)  Cook Lease Overriding Royalty /Option/Reassignment.

          (i)  Cook ORRI. Seller hereby reserves for itself and its successors
               and assigns an overriding royalty interest in and to the
               following Oil and Gas Leases: (i) the Oil and Gas Lease from
               Elmer E. Cook dated 6/9/60, recorded in Book 339, Page 309, (ii)
               the Oil and Gas Lease from Roland Cook dated 6/9/60, recorded in
               Book 339, Page 279 and (iii) the Oil and Gas Lease from Ivory E.
               Dotson dated 8/5/60, recorded in Book 341, Page 317
               (collectively, the "Cook Leases") equal to 29.467392% of 8/8ths
               (the "Cook ORRI").

          (ii) Purchase Option. Buyer shall have the exclusive option to
               purchase the Cook ORRI from Seller for $500,000.00, such option
               to be exercisable one time on or before June 1, 2006 for the
               entire Cook ORRI (the "Cook Option").

          (iii) Repurchase Option. If Buyer has not attempted to recomplete and
               commingle the Wabunsee and Topeka zones in the Cook #1-5 (SE/4
               SE/4 5-33S-43W)wellbore before January 1, 2006, Seller shall have
               the option to repurchase the Cook #1-5 Well and leases as
               described in Exhibit A for the allocated value assigned to such
               well in this Agreement.

          (iv) Reassignment Obligation. If Buyer has not drilled a well in the
               N/2 of Section 9, T33S, R43W and a second well in the S/2 of
               Section 5, T33S, R44W, both to a depth sufficient to test the Red
               Cave Formation (located between the depths of 1576 feet and 1650
               feet in the Cook #1-5 wellbore), on or before June 1, 2006, then
               Buyer shall assign to Seller for no consideration the previously
               assigned rights to the undrilled portion of the Cook Lease.

     (c)  Seller reserves from the Properties those interests described in
          Exhibit C, as fully defined and set forth in the Assignment, Bill of
          Sale and Conveyance referenced in Section 1.5.

     1.3 Purchase Price/Consideration. The Purchase Price for the Properties
shall be $2,500,000 (Two Million Five Hundred Thousand) ("Purchase Price"),
subject only to any applicable price adjustment as provided for under the terms
of this Agreement, plus 100,000 restricted shares of common stock in Colorado
Oil and Gas, Inc., a Colorado corporation valued at $1.00 per share (the (COG
Shares").

     The COG Shares shall be issued and delivered to Seller at Closing with an
appropriate legend under Rule 144 indicating that such shares are "Restricted
Securities" under said Rule 144. Seller agrees to complete and execute
appropriate subscription documents for the COG Shares including a Subscription
Agreement and Letter of Investment Intent, and Investor Questionnaire to be
provided by Buyer to Seller prior to Closing. Seller shall be granted
"Piggy-Back" registration rights to have its COG Shares included for
registration in the first or any subsequent Registration Statement filed by
Buyer with the Securities and Exchange Commission with respect to its shares of
common stock that allows for registration and removal of resale restrictions of
the COG Shares. In any event Seller agrees not to sell or transfer its COG
Shares to any unaffiliated third party for a period of 12 months after the
Closing without express written consent of Buyer, which consent shall not be
unreasonably withheld.

     1.4 Effective Date. This Agreement shall be effective June 1, 2005, at 7:00
a.m. Mountain Time unless the Buyer extends the Closing Date to after June 15,
2005, at 5:00 p.m. Mountain Time in which case the Effective Date shall be July
1, 2005, at 7:00 a.m. Mountain Time (the "Effective Date").

     1.5 Form of Assignment. The assignment from Seller to Buyer shall be in the
form of the Assignment, Bill of Sale and Conveyance attached as Exhibit D and
made a part hereof (the "Assignment"). The Assignment shall reflect the
reservations of the Hanavan ORRI and the Cook ORRI and shall convey the personal
property associated with the Properties "AS IS, WHERE IS".

     1.6 1031 Exchange. Each entity comprising Seller reserves the right, at or
prior to Closing, to assign its rights under this Agreement with respect to all
or a portion of the Purchase Price, and that portion of the Properties
associated therewith ("1031 Properties"), to a Qualified Intermediary ("QI") (as
that term is defined in Section 1.1031(k)-1(g)(4)(v) of the Treasury
Regulations) to accomplish this Transaction, in whole or in part, in a manner
that will comply with the requirements of a like-kind exchange ("Like-Kind
Exchange") pursuant to Section 1031 of the Internal Revenue Code of 1986, as
amended ("Code"). If Seller so elects, Seller may assign its rights under this
Agreement to the 1031 Properties to the QI. Buyer hereby (i) consents to
Seller's assignment of its rights in this Agreement with respect to the 1031
Properties, and (ii) if such an assignment is made, agrees to pay all or a
portion of the Purchase Price into the qualified trust account at Closing as
directed in writing by Seller. Seller and Buyer acknowledge and agree that a
whole or partial assignment of this Agreement to a QI shall not release either
Party from any of its respective liabilities and obligations to each other or
expand any such respective liabilities or obligations under this Agreement.
Neither Party represents to the other that any particular tax treatment will be
given to either Party as a result of the Like-Kind Exchange. The Party not
participating in the Like-Kind Exchange shall not be obligated to pay any
additional costs or incur any additional obligations in its sale of the
Properties if such costs are the result of the other Party's Like-Kind Exchange,
and the Party participating in the Like-Kind Exchange shall hold harmless and
indemnify the other Party from and against all claims, losses and liabilities,
if any, resulting from such a Like-Kind Exchange.

                                   SECTION II
                                  DUE DILIGENCE

     2.1 Access to Records. Seller shall give Buyer and its authorized
representatives, during regular business hours, at Buyer's sole risk, cost and
expense, access, with copying privileges, to all geological, geophysical,
production, engineering and other technical data and records, and to all
contract, land, title and lease records to the extent such data and records are
in Seller's possession and relate to the Properties (the "Records") and such
other information relating thereto as Buyer may reasonably request with the
following exception: Seller shall have no obligation to provide Buyer with
access to any documents, data or information which access Seller cannot legally
provide Buyer because of third-party restrictions on Seller.

     Buyer shall keep all materials and data obtained from Seller confidential
in accordance with the terms of this Agreement, including Sections 5.4, 10.7 and
10.8. Buyer shall return any and all materials and data including Buyer's notes
and work papers as to any of the Properties not purchased at Closing.

     2.2 Examination and Physical Inspection. Buyer and its authorized
representatives shall have physical access to the Properties at Buyer's sole
cost, risk and expense for the purpose of inspecting the Properties, conducting
such tests, examination, investigations and assessments as may be reasonable and
necessary or appropriate to evaluate the environmental and physical conditions
of the Properties. For those Properties which are not operated by Seller, Buyer
shall use its best efforts to obtain permission from the operator to conduct
such inspections. Buyer shall defend and indemnify Seller from any and all
liability, claims, causes of action, injury to Buyer's employees, agents or
contractors or to Buyer's property, and/or injury to Seller's property,
employees, agents or contractors which may arise out of Buyer's inspections. In
the event this Agreement fails to close, Buyer shall keep any and all data or
information acquired by all such examinations including the Independent
Environmental Review described in Section 2.8(a)(vi) and results of all analysis
of such data and information strictly confidential in accordance with the terms
of this Agreement and return such data and information to Seller.

     2.3 Disclaimer. Except for the representations contained in this Agreement,
Seller makes no representation of any kind as to the Records or any information
contained therein. Buyer agrees that any conclusions drawn from the Records
shall be the result of its own independent review and judgment.

     2.4 Defensible Title.

     (a)  As used herein, the term "Defensible Title" shall mean, as to each of
          the Leases and Lands, such right, title and interest that (i) is
          beneficially owned or deducible of record (either from the records of
          the applicable county and/or, in the case of Federal leases, from the
          records of the applicable office of the Bureau of Land Management and
          state leases from the records of the applicable state land office)
          and, in either case, free from reasonable doubt to the end that a
          prudent person engaged in the business of the ownership, development
          and operation of producing oil and gas properties and having knowledge
          of all of the facts and their legal bearing would be willing to accept
          the same; (ii) entitles Seller to receive not less than the interest
          set forth in Exhibit B as the "Net Revenue Interest" or "NRI" with
          respect to all of the oil, gas and hydrocarbon minerals produced,
          saved and marketed from each unit or Wells, as the case may be,
          identified on Exhibit B hereto; (iii) obligates Seller to pay costs
          and expenses relating to such unit or Wells in an amount not greater
          than the "Working Interest" or "WI" set forth in Exhibit B; and (iv)
          except for Permitted Encumbrances, is free and clear of all liens and
          encumbrances.

          As used herein the term "Permitted Encumbrances" means:

          (i)  Lessors' royalties, overriding royalties, reversionary interests
               and similar burdens if the net cumulative effect of such burdens
               does not operate to reduce the Net Revenue Interest of any of the
               Wells to less than the Net Revenue Interest set forth in Exhibit
               B;

          (ii) preferential rights to purchase and required third party consents
               to assignment and similar agreements with respect to which (i)
               waivers or consents are obtained from the appropriate parties
               prior to Closing, (ii) the appropriate time period for asserting
               such rights has expired without an exercise of such rights, or
               (iii) with respect to consent, such consent need not be obtained
               prior to an assignment;

          (iii) liens for taxes or assessments not yet due or not yet delinquent
               or that are being contested in good faith; (iv) materialmen's,
               mechanics', repairmen's, employees', contractors', operators' or
               other similar liens or charges arising in the ordinary course of
               business incidental to construction, maintenance or operation of
               the Properties if they have not been filed pursuant to law; (v)
               all rights to consent by, required notices to, filings with, or
               other actions by governmental entities in connection with the
               sale or conveyance of oil and gas leases or interests therein if
               the same are customarily obtained subsequent to such sale or
               conveyance; (vi) customary rights of reassignment prior to
               release or surrender of a lease, requiring notice to the holders
               of the rights; (vii) easements, rights-of-way, permits, surface
               leases and other rights in respect of surface operations; (viii)
               the terms and conditions of all Leases and all agreements,
               orders, instruments, (ix) the terms and conditions of all Leases
               and all agreements, orders, instruments, documents and other
               matters affecting the Properties which are customary in the oil,
               gas and other mineral exploration, development or extraction
               business or in the business of processing of gas and gas
               condensate production for the extraction of products therefrom in
               the area where the Properties are located, provided that the
               foregoing do not operate to reduce the Net Revenue Interest, nor
               increase the Working Interest, of Seller in the Wells as
               reflected in Exhibit B (unless, in the case of an increased
               Working Interest, Seller's Net Revenue Interest is
               proportionately increased); (x) rights reserved to or vested in
               any municipality or governmental, statutory or public authority
               to control or regulate any of the Properties in any manner, and
               all applicable laws, rules and orders of governmental authority;
               and (xi) all other liens, charges, encumbrances, contracts,
               agreements, instruments, obligations, defects and irregularities
               affecting the Properties that do not (or would not upon
               foreclosure or other enforcement) reduce the net revenue
               interests set forth in Exhibit B, nor prevent the receipt of
               proceeds of production therefrom, nor increase the share of costs
               above the working interest set forth for the Wells as shown in
               Exhibit B, nor are such as materially to interfere with or
               detract from the ownership, operation, value or use of the
               Properties.

     2.5 Preferential Rights. If any of the Properties are subject to
preferential purchase rights, rights of first refusal, consents to assign,
lessor's approvals, or similar rights (collectively, "preferential rights"),
Seller shall promptly upon the execution of this Agreement by the parties hereto
notify all holder of preferential rights of its intention to sell the Properties
affected thereby. Seller shall promptly notify Buyer if the preferential rights
are exercised, or if the requisite period has elapsed without the rights having
been exercised.

     2.6 Title Objection Procedure.

     (a)  On or before May 20, 2005, Buyer shall conclude its title review and
          give notice to Seller of asserted title defects ("Title Defects")
          which would cause title to any interest not to be Defensible Title. To
          be effective, Buyer's written notice of a Title Defect must include
          (i) a brief description of the matter constituting the asserted Title
          Defect and (ii) supporting documents reasonably necessary for Seller
          (or a title attorney or examiner hired by Seller) to verify the
          existence of such asserted Title Defect, and (iii) the value of each
          such Title Defect must exceed $10,000.00 ("Title Deductible"). If a
          Title Defect does not reduce the Allocated Value of a property by more
          than the Title Deductible, it shall not be considered to be a Title
          Defect.

     (b)  If a Property is affected by a Title Defect at Closing, the Purchase
          Price will be reduced by an amount mutually agreed to by Seller and
          Buyer, unless, (i) Seller cures the Title Defect prior to Closing,
          (ii) Buyer agrees to waive the relevant Title Defect, (iii) Seller
          elects on or before Closing to cure such Title Defect no later than 90
          days after Closing; or (iv) Seller, with Buyer's consent, such consent
          not to be unreasonably withheld, elects on or before Closing to
          indemnify Buyer against any loss attributable to the relevant Title
          Defect. If Seller elects to cure the relevant Title Defect
          post-Closing, Seller shall assign the affected Asset to Buyer at
          Closing and the Purchase Price will not be reduced at Closing for such
          Title Defect. If Seller cures the relevant Title Defect to Buyer's
          reasonable satisfaction, there shall be no adjustment to the Purchase
          Price; if Seller does not cure the relevant Title Defect to Buyer's
          reasonable satisfaction, the Purchase Price shall be adjusted by an
          amount equal to the Title Defect Value attributable to the applicable
          Title Defect, such adjustment to be made within 15 days of the
          determination that the alleged Title Defect will not be cured to
          Buyer's reasonable satisfaction.

     2.7 Casualty Loss. Prior to Closing, if a portion of the Properties is
destroyed by fire or other casualty, or is taken or threatened to be taken in
condemnation or under the right of eminent domain (with such event being a
"Casualty Loss"), Buyer shall purchase the Property at Closing for the Allocated
Value of the Property reduced by the estimated cost to repair or replace such
Property (with equipment of similar utility) up to the Allocated Value thereof
(the reduction being the "Net Casualty Loss"). Seller, at its sole option, may
elect to cure such Casualty Loss. If Seller elects to cure such Casualty Loss,
Seller may replace any personal property that is the subject of a Casualty Loss
with equipment of similar grade and utility. If Seller cures the Casualty Loss,
Buyer shall purchase the affected Property at Closing for the Allocated Value
thereof without any Purchase Price Adjustment for such Casualty Loss.

     2.8 Environmental Objection Procedure.

     (a)  The following definitions shall apply to this Agreement:

          (i)  "Environmental Law" means any statute, rule, regulation, or code
               of any federal, state, or local government authority relating to
               pollution or protection of the environment, to the extent in
               effect and consistently enforced before the Effective Date.

          (ii) "Retained Remediation Obligations" means only the obligation to
               remediate certain Environmental Defects identified in an
               Environmental Defect Notice, except for Site Costs, which
               obligation to remediate is retained by Seller pursuant to Section
               2.8(b).

          (iii) "Assumed Environmental Liabilities" means all liabilities and
               obligations for environmental matters related to the Properties,
               whether located on the Properties or offsite, before and after
               the Effective Date, except for the Retained Remediation
               Obligations.

          (iv) "Site Costs" shall mean all costs of plugging and abandoning the
               Wells, disposing of equipment in connection with the Wells and
               restoring the land in connection with the Wells in compliance
               with any and all applicable laws, statues, ordinances, rules,
               regulations, orders or determination of any governmental
               authority and in compliance with all applicable leases and all
               other applicable agreements.

          (v)  "Environmental Defect Notice" means a notice of an Environmental
               Defect that is given by Buyer to Seller in accordance with the
               provisions of Section 2.8(b). An Environmental Defect Notice must
               be based on the independent Environmental Review or a notice of
               violation of an Environmental Law received from a governmental
               authority.

          (vi) "Independent Environmental Review" means the environmental
               assessment performed by a qualified independent third party
               environmental consultant on behalf of Buyer.

          (vii) "Environmental Deductible" means a deductible of $10,000.00 per
               Environmental Defect with respect to an Incident (as hereinafter
               defined) causing an Environmental Defect. "Incident" means a
               spill, release, discharge or emission of a substance that
               occurred or reoccurred in the same area on account of a single
               cause or course of conduct.

          (viii) "Environmental Defect" means a condition on the Properties that
               exists before the Effective Date that violates a currently
               allowed limit prescribed by an Environmental Law.

     (b)  An Environmental Defect Notice must be given to Seller no later than
          5:00 p.m. Mountain Time on May 20, 2005, and must include all of the
          following: (i) a description of the affected property including the
          well name, if applicable, (ii) a detailed description of the condition
          that causes the claimed Environmental Defect to be in violation of an
          Environmental Law, (iii) a copy of the Independent Environmental
          Review confirming violation of an Environmental Law or a copy of the
          notice of violation of an Environmental Law received from a
          governmental authority, and (iv) an estimate of the remediation costs
          less Site Costs, which amount must exceed the Environmental
          Deductible. Any notice that is not timely and properly given or that
          does not satisfy all of the foregoing shall not be a valid
          Environmental Defect Notice. If Seller does not receive an
          Environmental Defect Notice as to any condition or item, Buyer shall
          be deemed to have accepted the affected Properties "as is, where is,"
          with all faults and waived Buyer's rights to assert an Environmental
          Defect with respect to that interest in the Properties.

     (c)  If Buyer gives a valid Environmental Defect Notice, Seller, at
          Seller's option, shall have the option of (i) remediating the
          Environmental Defect before or within ninety (90) days after the
          Closing (and at such time as the Environmental Defect is remedied, it
          shall be excluded from the Retained Remediation Obligations and shall
          become an Assumed Environmental Liability), (ii) contesting the
          existence of an Environmental Defect or Buyer's estimate of the
          remediation costs, or (iii) reducing the Purchase Price or refunding a
          portion of the Purchase Price if after Closing by Buyer's estimate of
          the remediation costs, less the Site Costs and Environmental
          Deductible, in which event Seller shall be released from all further
          liability or obligation to Buyer with respect to the Environmental
          Defect and the Environmental Defect shall be an Assumed Environmental
          Liability. If Seller selects option (i) above, then Seller shall place
          in escrow the estimate of the remediation costs, less the Site Costs
          and Environmental Deductible. If Seller selects option (ii) above,
          then Seller shall place funds in escrow at such time and in such
          amount, if any, as determined in accordance with sub-paragraph (d)
          below. The escrowed amounts shall remain in escrow until the
          remediation is completed. Seller also shall have the option to exclude
          the Property from this transaction by notifying Buyer before or after
          the Closing, in which event the Purchase Price shall be reduced by a
          mutually acceptable amount and money refunded to Buyer, if
          appropriate.

     (d)  If Seller contests the existence of an Environmental Defect or Buyer's
          estimate of the remediation costs, Seller shall notify Buyer within
          five (5) business days after Seller's receipt of the Environmental
          Defect Notice. The notice shall state the basis for Seller's contest
          of the Environmental Defect or the estimate of the remediation costs.
          Within three (3) business days after Buyer's receipt of the notice,
          representatives of Seller and Buyer, knowledgeable in environmental
          matters, shall meet, and within five (5) days after Buyer's receipt of
          the notice, either (i) agree to reject the Environmental Defect, in
          which case Buyer shall waive the Environmental Defect, or (ii) agree
          on the validity of the Environmental Defect and the estimated
          remediation costs, in which case Seller shall have the options
          provided in Section 2.8(c) (except for the right to contest).

     (e)  If Seller elects to remediate an Environmental Defect pursuant to
          Section 2.8(c), Seller shall select the means and methods of effecting
          the remediation in accordance with applicable Environmental Law and
          any applicable agreement, but Seller shall not be required to perform
          any activities if the cost thereof would be Site Costs, including
          without limitation plugging and abandoning any Wells. Seller's
          responsibilities for remediation under this Section 2.8(e) shall be
          limited to a standard appropriate for the use of an asset for oil and
          gas activities.

     (f)  The rights and remedies granted to Buyer in this Section are the
          exclusive rights and remedies relating to any environmental condition
          on the Properties, and Seller shall have no other liability or
          obligations with respect to environmental conditions on the
          Properties.

     2.9 Purchase Price Adjustments. The Purchase Price is based upon Seller
having an ownership in each Well of not less than the Net Revenue Interests
specified on Exhibit B. In accordance with Section 2.6, if Seller is unable to
deliver, at Closing, the Net Revenue Interests to each Well shown on Exhibit B,
the Purchase Price shall be reduced by an amount equal to a proportionate amount
of the mutually agreed value for such Well as specified in Exhibit E. Likewise,
if Seller shall have a greater Net Revenue interest, the Purchase Price shall be
increased proportionately. In addition, in the event the Working Interest set
forth on Exhibit B for any Well is not reduced by an amount corresponding to
such reduction in Net Revenue Interest, such condition shall be deemed a Title
Defect which is subject to the terms of Section 2.6 above. In the event that the
aggregate reduction in the Purchase Price on account of any adjustments for the
Title Defects and Environmental Defects, equals or exceeds ten percent of the
Purchase Price and Seller and Buyer cannot mutually agree upon the adjustment
amount, either Seller or Buyer shall have the right to terminate this Agreement
by written notice to the other party, in which event all right, duties and
obligations of either party hereunder shall cease. The parties acknowledge that
Closing may occur prior to the final calculation of the Purchase Price
adjustments contemplated by this Section 2.9. If this occurs, Seller and Buyer
shall adjust the Purchase Price accordingly at a post-Closing adjustment as
described in Section 3.

     2.10 Acceptance.

     (a)  Buyer acknowledges and agrees that Seller may not operate some or all
          of the Properties and, as non-operator, has no knowledge or only
          limited knowledge of the environmental condition of the Properties.
          Buyer acknowledges and agrees that Seller has made no effort to
          investigate the environmental condition of or on the Properties and,
          except as expressly provided in the following paragraph, makes no
          representation or warranties as to the condition of the Properties.

          Seller represents and warrants to Buyer that, to the best of Seller's
          knowledge, Seller has not received any written notice from any
          federal, state or local government authority that (i) the Properties
          do not have a permit required under Environmental law, (ii) Seller is
          in violation or potential violation of an Environmental Law, or (iii)
          Seller is liable or potentially liable for response costs or other
          remedial costs under the Comprehensive Environmental Response,
          Compensation and Liability Act, 42 U.S.C. Section 9601, et seq. with
          respect to the Properties.

     (b)  After Closing, and except for Retained Remediation Obligations, Buyer
          shall assume all responsibility and liability to plug and abandon the
          Wells and reclaim the Lands associated with the Wells on the
          Properties. In addition, Buyer shall assume all liability and pay,
          perform, fulfill and discharge, and release Seller from and defend and
          indemnify Seller against, any and all claims, costs, expenses,
          liabilities and obligations relating to: (i) the Assumed Environmental
          Liabilities, including but not limited to those arising out of events
          occurring after the Effective Date that are within control of Buyer or
          that are attributable to the acts of Buyer or its contractors or
          subcontractors, and (ii) the Site Costs as defined in Section
          2.8(a)(iv). Upon Closing, Seller agrees to remain and pay, perform,
          fulfill and discharge, and indemnify Buyer against all claims relating
          to the Retained Remediation Obligations, except for those claims
          relating to the Retained Remedial Obligations arising out of events
          occurring after the Effective Date that are within the control of
          Buyer or that are attributable to the acts of Buyer or its contractors
          or subcontractors.

     (c)  Physical Condition of Properties: BUYER UNDERSTANDS AND AGREES THAT
          THIS SALE IS MADE ON AN "AS IS, WHERE IS" BASIS, AND BUYER HEREBY
          RELEASES SELLER FROM ANY AND ALL LIABILITY OF EVERY KIND AND CHARACTER
          WITH RESPECT THERETO, WHETHER OR NOT CAUSED BY OR ATTRIBUTABLE TO
          SELLER'S NEGLIGENCE. WITHOUT LIMITING THE FOREGOING, BUYER WAIVES ITS
          RIGHT TO RECOVER FROM SELLER AND FOREVER RELEASES AND DISCHARGES
          SELLER FROM ANY AND ALL DAMAGES, CLAIMS, LOSSES, LIABILITIES,
          PENALTIES, FINES, LIENS, JUDGMENTS, COSTS OR EXPENSES WHATSOEVER
          (INCLUDING WITHOUT LIMITATION, ATTORNEYS FEES AND COSTS OF
          LITIGATION), WHETHER DIRECT OR INDIRECT, KNOWN OR UNKNOWN, FORESEEN OR
          UNFORESEEN, THAT MAY ARISE OUT OF OR BE CONNECTED IN ANY WAY WITH THE
          PHYSICAL CONDITION OF THE PROPERTIES OR ANY LAW OR REGULATION
          APPLICABLE THERETO, INCLUDING WITHOUT LIMITATION, THE COMPREHENSIVE
          ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980, AS
          AMENDED (42 U.S.C. 9601 ET SEQ.), THE RESOURCE CONSERVATION AND
          RECOVERY ACT OF 1976 (42 U.S.C. 6901 ET SEQ.), THE CLEAN WATER ACT (33
          U.S.C. 466 ET SEQ.), THE SAFE DRINKING WATER ACT (14 U.S.C.
          1401-1450), THE HAZARDOUS MATERIALS TRANSPORTATION ACT (49 U.S.C. 1801
          ET SEQ.), AND THE TOXIC SUBSTANCE CONTROL ACT (15 U.S.C. 2601-2629).

     (d)  Buyer's Due Diligence: SELLER DOES NOT WARRANT OR REPRESENT THE
          ACCURACY OR COMPLETENESS OF THE SEISMIC DATA, THE GEOLOGIC DATA,
          FILES, CONTRACTS, ENVIRONMENTAL REPORTS OR ANY OTHER INFORMATION
          RELATING TO THE PROPERTIES, QUANTITY OR QUALITY OF RESERVES, IF ANY,
          OR ABILITY TO PRODUCE HYDROCARBONS FROM THE PROPERTIES, WHICH WERE
          FURNISHED TO BUYER, AND BUYER RELIES THEREON AT BUYER'S SOLE RISK AND
          EXPENSE. Seller makes this conveyance based upon the representation
          that Buyer has conducted due diligence and has made an independent
          evaluation of the condition of the Properties, production potential,
          and otherwise. Buyer is charged with all knowledge obtainable from
          materials made available by Seller relating to the Properties prior to
          Closing and from county records and federal, state and regulatory
          agency records.

                                   SECTION III
                                   ACCOUNTING

     3.1  Accounting.

     (a)  All proceeds (including proceeds held in suspense or escrow) from the
          sale of production actually sold and delivered by Seller prior to the
          Effective Date attributable to the Properties shall belong to Seller
          and all proceeds from the sale of production actually sold and
          delivered after the Effective Date attributable to the Properties
          shall belong to Buyer.

     (b)  All oil, condensate or liquid hydrocarbons and any products (liquid,
          gas or solid) separated or processed therefrom (hereinafter in this
          paragraph called "oil") in storage shall be measured or gauged and all
          gas meter charts shall be replaced at the Effective Date. Buyer shall
          pay Seller for such oil at the actual price received for the sale of
          such oil. If not known, this Purchase Price shall be estimated at
          Closing and paid to Seller with the actual final settlement of this
          matter to occur at the post-Closing accounting, provided that Buyer
          shall not pay Seller for oil in storage below the one foot level of
          the bottom of the tank.

     (c)  Any gas imbalance shall be accounted for between Buyer and Seller as
          follows: Buyer and Seller agree that the net gas imbalance
          attributable to the Properties as of the Effective Date is believed to
          be that which is set forth on Exhibit F (the "Agreed Imbalance"),
          notwithstanding that the actual imbalance may be less or greater. The
          Agreed Imbalance has been used by Buyer and Seller in negotiating the
          Purchase Price under this Agreement. Buyer and Seller shall verify the
          actual net gas imbalance in the post-Closing accounting and any
          imbalance shall be accounted for between the parties at the price of
          $6.00 per MCF but only as to those volumes which exceed or are less
          than the Agreed Imbalance; provided that if an applicable operating or
          gas balancing agreement requires cash balancing upon conveyance of the
          interests, the adjustment price shall equal the greater of $6.00 per
          MCF or the price received with respect to such cash balancing. Such
          settlement shall be final and neither party thereafter shall make
          claim upon the other concerning the gas balances of the Properties.
          Buyer assumes all rights and liabilities relating to gas imbalances
          discovered after the post-Closing settlement including any revenue
          adjustment caused by such subsequently discovered imbalance.

     (d)  Except as otherwise specifically provided in this Agreement, all
          normal and routine costs, expenses and contractual obligations
          relating to the Properties (collectively, "Property Expenses") which
          accrue prior to the Effective Date shall be paid and discharged by
          Seller and all normal and routine contractual costs, expenses and
          obligations relating to the Properties which accrue after the
          Effective Date shall be paid and discharged by Buyer.

     (e)  The foregoing adjustments in subparagraphs (a) to (d) shall be made by
          debits and credits between the parties at Closing or post-Closing as
          provided for herein.

     3.2 Sales Tax. The Purchase Price provided for hereunder excludes any sales
taxes or other taxes in connection with the sale of property pursuant to this
Agreement. If a determination is ever made that a sales tax or other transfer
tax applies, Buyer shall be liable for such tax as well as any applicable
conveyance, transfer and recording fees, and real estate transfer stamps or
taxes imposed on any transfer of property pursuant to this Agreement. Buyer
shall defend and hold Seller harmless with respect to the payment of all such
taxes, if any, including any interest or penalties assessed thereon.

     3.3 Post-Closing Adjustments. As soon as practicable after Closing, but in
any event within ninety (90) days thereafter, Seller shall prepare, in
accordance with this Agreement and (where applicable) in accordance with
generally accepted accounting principles consistently applied, a final
settlement statement (herein called the "Final Statement") setting forth each
adjustment or payment which was not finally determined as of the Closing Date,
and showing the calculation of the final settlement price based on such Final
Statement (the "final settlement price"). Seller shall submit the Final
Statement to Buyer and shall afford Buyer access to Seller's records pertaining
to the computations contained in the Final Statement. As soon as practicable
after receipt of the statement, Buyer shall deliver to Seller a written report
containing any changes which Buyer proposes be made to the Final Statement. The
parties shall agree with respect to the amounts due pursuant to such
post-Closing adjustment not later than sixty (60) days after Buyer's receipt of
Seller's Final Statement. The date upon which such agreement is reached shall be
herein called the "Settlement Date." In the event that (i) the final settlement
price is more than the amount previously paid to Seller, Buyer shall pay to
Seller in immediately available funds the amount of such difference; or (ii) the
final settlement price is less than the amount previously paid to Seller, Seller
shall pay to Buyer in immediately available funds the amount of such difference.

     3.4 No Broker's Fees. Each of Seller and Buyer represents and warrants to
the other that it has not incurred liability, contingent or otherwise, for
brokers' fees, or finders' fees or similar fees in respect of this Agreement or
the transactions contemplated hereby.

     3.5 Proration of Taxes. All ad valorem taxes, severance taxes, conservation
taxes, real property taxes, personal property taxes and similar obligations for
the Properties for the tax period in which the Effective Date occurs shall be
apportioned on a calendar year basis as of the Effective Date between Buyer and
Seller. Any tax based on the value of hydrocarbon production shall be prorated
only as to taxes on hydrocarbons produced in the year in which the Effective
Date occurs. The portion of apportioned tax liability, based on a good faith
estimate, shall be credited to Buyer's account, which shall be adjusted by the
parties by payment by one party to the other of the amount of the over- or
under-estimation when the amount of the tax liability is actually known. Buyer
shall file or cause to be filed all required reports and returns for taxes and
shall pay or cause to be paid to the taxing authorities all taxes for the tax
period in which the Effective Date occurs. All liability for Seller's
proportionate share of taxes attributable to the Properties for all years prior
to the year in which the Effective Date is effective shall be Seller's alone.
The amount of or a good faith estimate of taxes due but not paid as of Closing
shall be deducted from the Purchase Price and later adjusted by the parties by
payment by the one party to the other of the amount of the over or
underestimation when the amount of the tax liability is actually known. If such
deductions and adjustments are made, Buyer shall be responsible for payment of
the taxes. Buyer shall provide Seller with copies of the filed reports and proof
of payment promptly after filing and paying taxes.

     3.6 Invoices for Property Expenses and Proceeds Received After the
Settlement Date. After the Settlement Date, those proceeds attributable to the
Properties received by a Party or invoices received for or Property Expenses
paid by one Party for or on behalf of the other Party with respect to the
Properties which were not already included in the Final Statement, shall be
settled as follows:

     (a)  Proceeds. Proceeds received by Buyer with respect to sales of
          hydrocarbons produced prior to the Effective Date shall be remitted or
          forwarded to Seller. Proceeds received by Seller with respect to sales
          of hydrocarbons produced after the Effective Date shall be forwarded
          to Buyer.

     (b)  Property Expenses. Invoices for Property Expenses received by Buyer
          that relate to operations on the Properties prior to the Effective
          Date shall be forwarded to Seller by Buyer, or if already paid by
          Buyer, invoiced by Buyer to Seller. Invoices for Property Expenses
          received by Seller that relate to operations on the Properties after
          the Effective Date shall be forwarded to Buyer by Seller, or if
          already paid by Seller, invoiced by Seller to Buyer.

     (c)  Duration. The provisions of this Section 3.6 shall apply until
          November 30, 2005, after which time, Buyer specifically agrees to
          assume, pay, become liable for and release Seller from all obligations
          and liabilities for Property Expenses related to the Properties
          attributable to the periods of time both before and after the
          Effective Date.

                                   SECTION IV
                         REPRESENTATIONS AND WARRANTIES

     4.1 Representations and Warranties of Seller. Seller hereby covenants,
represents and warrants to Buyer as follows:

     (a)  Seller has full power, authority, and legal right to convey the
          Properties. The entities defined herein as Seller are duly organized,
          validly existing, and in good standing under the laws of the State of
          Colorado and are duly qualified to do business in Colorado;

     (b)  The Properties are free and clear of all liens and encumbrances
          arising by, through or under Seller except for those which Seller has
          disclosed in writing to Buyer and those which Seller shall cause to be
          released and discharged on or before the Closing Date;

     (c)  To the best of Seller's knowledge, Seller has filed all federal,
          state, and other reports or returns, if any, required to be filed by
          Seller in connection with the Properties when required and has either
          discharged or caused to be discharged as the same have become due, all
          taxes, costs, expenses, charges, and debts of every kind and character
          including, without limitation, severance taxes, attributable or
          relating to the Properties or to the operation thereof or revenues or
          income therefrom attributable to the period prior to the Effective
          Date except for those that have been disclosed in writing to Buyer;

     (d)  To the best of Seller's knowledge, there are no agreements to which
          Seller is a party or by which Seller is bound, relating to the
          Properties, requiring Seller to bear any of the costs associated with
          operations under such agreement greater than Seller's proportionate
          share of the ownership of the Properties affected thereby, except
          those which have been disclosed in writing to Buyer;

     (e)  To the best of Seller's knowledge, no legal action, suit, or
          proceeding to which the Seller is a party, judicial or administrative,
          or governmental investigation is pending which could conceivably
          involve the Properties or the production of oil and/or gas therefrom,
          the operations being conducted thereon or the purchase, sale,
          transportation, or processing of production of products therefrom,
          which would have a material adverse effect on the Properties or on the
          ability of Seller to perform its obligations under this Agreement,
          except those which have been disclosed in this Agreement or otherwise
          in writing to Buyer.

     4.2 Representations and Warranties of Buyer. Buyer hereby covenants,
represents and warrants to Seller as follows:

     (a)  Buyer has full power and authority to make and perform this Agreement
          according to the terms hereof and is a corporation duly organized,
          validly existing, and in good standing under laws of the State of
          Colorado;

     (b)  Buyer at present is duly qualified to do business in Colorado;

     (c)  Buyer's execution, delivery, and performance of this Agreement has
          been duly authorized by all necessary corporate action, including, but
          not limited to, an executed resolution of its Board of Directors
          delivered to Seller before the Closing;

     (d)  Buyer is acquiring the Properties for its own account, for use in its
          trade or business or for investment, and not with a view toward or for
          sale in connection with any distribution thereof, nor with any present
          intention of making a distribution thereof within the meaning of the
          Securities Act of 1933;

     (e)  Buyer is presently qualified to hold leases of the United States
          and/or hold leases..

     (f)  In entering into this Agreement, Buyer acknowledges and affirms that
          it has relied and will rely solely on the terms of this Agreement and
          upon its independent analysis, evaluation and investigation of, and
          judgment with respect to, the business, economic, legal, tax or other
          consequences of the transaction contemplated by this Agreement,
          including its own estimate and appraisal of the extent and value of
          the petroleum, natural gas and other reserves of the Properties, the
          value of the Properties and future operation, maintenance and
          development costs associated with the Properties. Buyer is aware of
          the geologic factors and risks associated with operating oil and gas
          wells in the area of the Properties. Accordingly, Buyer assumes the
          risk of the downhole condition of the Wells. Except as expressly
          provided in this Agreement, Seller shall not have any liability to
          Buyer or its affiliates, agents, representatives or employees
          resulting from any use, authorized or unauthorized, of the Records or
          other information relating to the Properties provided by or on behalf
          of Seller.

     4.3 Survival of Representations and Warranties. All representations and
warranties contained in this Section 4 of this Agreement shall terminate one
year after Closing. The parties hereto have made no representations or
warranties except those expressly set forth in this Agreement.

                                    SECTION V
                       ADDITIONAL AGREEMENTS AND COVENANTS

     5.1 Affirmative Obligations of Seller Pending Closing. From the date of
this Agreement to Closing, Seller agrees that it shall conduct Seller's business
with respect to the Properties in a prudent manner, consistent with its recent
practices. Seller shall notify Buyer of any material change in the condition of
the Properties of which Seller becomes aware prior to Closing and shall consult
with Buyer regarding any expenditures in excess of $25,000.00 (U.S.) net to
Seller's interest to be made for the Properties between the date of this
Agreement and Closing.

     5.2 Other Obligations of Seller Pending Closing. From the date of this
Agreement to the Closing Date, to the extent Seller is required to do so under
applicable agreements, Seller shall diligently attempt to pay all costs and
expenses incurred in connection with the development, operation and maintenance
of the Properties and all delay rentals, shut-in payments, and minimum royalties
owing on account of any lease.

     5.3 Operating Approval. Prior to Closing, Buyer shall diligently pursue
from the appropriate governmental authorities the approvals necessary to operate
those Wells currently being operated by Seller. Such approval shall include
filing and/or obtaining bonds covering the Properties as may be required by
applicable federal, state or local government agencies having jurisdiction over
the Properties or a commitment in writing by a surety company satisfactory to
the government agencies to issue the required bonds upon Closing. In lieu of the
foregoing, Buyer may employ a mutually agreed to third party contract operator.

     5.4 Confidentiality. Buyer shall cause the information and data furnished
or made available by Seller to Buyer and its officers, employees, and
representatives (including bankers and financial advisors) in connection with
this Agreement or Buyer's investigation of the Properties, to be maintained in
confidence and not to be used for any purpose other than in connection with this
Agreement or Buyer's investigation of the Properties; provided, however, that
the foregoing obligation shall terminate on the earlier to occur of (i) the
Closing, (ii) such time as the information or data in question is disclosed to
Buyer by a third party that is not obligated to Seller to maintain same in
confidence, or (iii) such time as the information or data in question becomes
generally available to the oil and gas industry other than through the breach of
the foregoing obligation.

                                   SECTION VI
                              CONDITIONS TO CLOSING

     6.1 Conditions Precedent to Seller's Obligation to Close. Seller shall be
obligated to consummate the sale of the Properties as contemplated hereby on the
Closing Date, provided the following conditions precedent exist or have been
waived by Seller:

     (a)  For that portion of the Properties operated by a Seller, Buyer or
          Buyer's third party contract operator shall have obtained bonds
          covering the Properties as may be required by any federal, state or
          local governmental agencies having jurisdiction over the Properties,
          or a commitment by a surety company satisfactory to the governmental
          agencies to issue required bonds upon Closing so as to allow Buyer to
          become the designated operator of such Wells;

     (b)  All representations and warranties of Buyer contained in this
          Agreement or in connection with the Transaction shall be true and
          correct in all material respects at and as of Closing as though such
          representations and warranties were made at and as of such time; and

     (c)  Buyer shall have complied in all material respects with all agreements
          and conditions of this Agreement to be performed or complied with by
          Buyer on or prior to the Closing Date; and

     (d)  Before Closing, Buyer shall have delivered to Seller an executed
          resolution of Buyer's Board of Directors authorizing Buyer's
          execution, delivery and performance of this Agreement as provided in
          Section 4.2(d) and 7.2(b) and an opinion letter from counsel attesting
          that Buyer has full power and authority to enter into this Agreement
          and perform its obligations under this Agreement.

     6.2 Conditions Precedent to Buyer's Obligation to Close. Buyer shall be
obligated to consummate the purchase of the Properties as contemplated by this
Agreement on the Closing Date, provided that the following conditions precedent
have been satisfied or have been waived by Buyer:

     (a)  All representations and warranties of Seller contained in this
          Agreement or in connection with this Transaction shall be true and
          correct in all material respects at and as of Closing as though such
          representations and warranties were made at and as of such time; and

     (b)  Seller shall have complied in all material respects with all
          agreements and conditions required by this Agreement to be performed
          or complied with by Seller on or prior to the Closing Date, necessary
          for the conveyance of the Properties.

                                   SECTION VII
                                     CLOSING

     7.1 Closing. The Closing Date shall be on or before June 1, 2005. The
Closing will be held at the offices of Seller or at any other mutually
acceptable location. Buyer may elect to extend the Closing Date by a maximum of
30 days. If Buyer extends the Closing Date to June 15, 2005, before 5:00 p.m.
Mountain Time, then the Effective Date will remain the same. If Buyer extends
the Closing Date to after 5:00 p.m. Mountain Time on June 15, 2005, then the
Effective Date shall be July 1, 2005, at 7:00 a.m. Mountain Time. In no event
shall the Closing Date be extended beyond July 1, 2005, at 5:00 p.m. Mountain
Time.

     7.2 Obligations at Closing. At the Closing, the following shall occur:

     (a)  Seller shall deliver to Buyer the Assignment and Bill of Sale,
          executed and properly notarized;

     (b)  Buyer shall deliver to Seller a corporate resolution signed by its
          Board of Directors approving this acquisition of the Properties and an
          opinion letter from its counsel attesting that Buyer has full power
          and authority to enter into this Agreement and perform its obligations
          under this Agreement.

     (c)  Buyer shall wire transfer to Seller the Purchase Price as adjusted
          hereunder, subject to further adjustment after Closing as provided for
          in this Agreement;

     (d)  Buyer and Seller shall execute the Settlement Statement;

     (e)  If Buyer requests, Seller shall execute transfer orders or letters in
          lieu notifying purchasers of production of the change in ownership of
          the Properties and such other instruments as may be necessary to
          convey the Properties to Buyer;

     (f)  If Buyer requests, Seller shall execute all necessary forms to be
          filed with the regulatory authorities concerning the change of
          ownership and operation of the Properties and Buyer shall deliver to
          Seller evidence that Buyer has obtained approval of such authorities
          so that Buyer can operate the Properties, if applicable;

     (g)  Seller shall execute and acknowledge any federal or state assignment
          forms; and

     (h)  Buyer and Seller shall execute such other instruments and take such
          other action as may be necessary to carry out its obligations under
          this Agreement.

                                  SECTION VIII
                            POST CLOSING OBLIGATIONS

     8.1 Files and Records. At Closing or as soon thereafter as practicable, and
at Buyer's expense, Seller shall furnish to Buyer copies of all Records relating
to the Properties and maintained by Seller except any document or record
discussing the value of the Properties or any document or record covered by
non-disclosure obligations.

     8.2 Indemnity. Buyer shall release Seller from and shall fully protect,
indemnify, and defend Seller, its officers, agents and/or employees and hold
them harmless from any and all claims, losses, damages, demands, suits, causes
of action, and liabilities (including attorneys fees, costs of litigation and/or
investigation and costs associated therewith) (collectively referred to
hereafter as "Claims") relating to Buyer's ownership and operation of the
Properties, including without limitation, injury or death of any person or
persons, and/or damage to or loss of any Properties or resources arising out of
or connected directly or indirectly with the ownership or operation of the
Properties, or any part thereof, pertaining to the period subsequent to the
Effective Date. The indemnity obligation and release provided herein shall apply
regardless of cause or of any negligent acts or omissions of Seller, its
officers, agents, and/or employees. The obligations and indemnifications set out
in this Section 8 and Section 2.8(b) shall not be limited in duration and shall
survive termination of this Agreement indefinitely.

                                   SECTION IX
                               RIGHTS AND REMEDIES

     9.1 Termination. In the event that Closing does not occur as a result of
Buyer's material breach of this Agreement, then Seller shall have the option to
terminate the Agreement and retain all legal and equitable remedies Seller may
have for Buyer's breach of this Agreement. Buyer's material breach of this
Agreement shall include, without limitation, the failure to deliver the Purchase
Price, as adjusted hereunder, at Closing.

     9.2 No Waiver. Consummation of Closing on the Properties shall not be
deemed to be a waiver by either party of any of its rights or remedies hereunder
for breach of warranty, covenant, or agreement herein by the other party.
However, the sole remedy of Buyer for a material breach by Seller of any
warranty or the non-satisfaction of a condition precedent to Buyer's obligation
to Close, which said breach or non-satisfaction has a material adverse effect on
the Properties to Buyer, and which Seller has not elected to remedy to the
satisfaction of Buyer, shall be as follows:

     (a)  Prior to Closing. Buyer may terminate this Agreement as provided
          herein.

     (b)  Subsequent to Closing. Buyer waives the right to assert any claims
          against Seller for rescission of this Agreement based upon breach of
          representations and warranties or non-satisfaction of conditions
          precedent. Such claims shall be limited to actual damages.

          In no event shall fluctuations in the price of crude oil, gas or other
     hydrocarbons or changes in the productive capacity of the wells located on
     the leases be a basis for a termination of this Agreement or a
     re-conveyance of the Properties to Seller.

                                    SECTION X
                                  MISCELLANEOUS

     10.1 Notices: All notices and other communications required, permitted, or
desired to be given hereunder must be in writing and sent by overnight courier,
properly addressed as shown herein below, and with all charges fully prepaid or
by hand delivery or by facsimile transmission. Date of service by courier or
hand delivery is the date on which such notice or other communication is
received by the addressee, by facsimile is the date sent, or if such date is on
a weekend or federal or state holiday, then on the next date which is not
Saturday, Sunday or such holiday. Each party may change its address by notifying
the other party in writing,

          If to Seller:

          R. Lee Tucker, Limited Partner
          Tucker Family Investments, LLLP
          12741 E. Caley,
          Unit 142
          Englewood, CO 80111
          Attn: R. Lee Tucker
          Fax:  303-850-0175

          DNR Oil & Gas Inc.
          12741 E. Caley, Unit 142
          Englewood, CO 80111
          Attn:  Charles B. Davis, President
          Fax:  303-825-2968

          Tindall Operating Co.
          12741 E. Caley, Unit 142
          Englewood, CO 80111
          Attn:  R. Lee Tucker, President
          Fax:  303-850-0175

<PAGE>

          If to Buyer:

          Colorado Oil & Gas, Inc.
          7260 Osceola Street
          Westminster, CO 80030
          Bill Stewart, CEO/President
          Fax:  720-344-0920

     10.2 Conveyance Costs. Seller shall be responsible for all filing and
recording of documents related to the transfer of the Properties from Seller to
Buyer but Buyer shall pay for all fees connected therewith. Within sixty (60)
days after Closing, Seller shall furnish Buyer and the operator or operators of
any unit or units which include any portion of the Properties, a copy of all
assignments as recorded in the appropriate county records. Seller shall file
assignments of the Properties with appropriate state and federal authorities, if
required by state and federal leases, if any, covering the Properties or as
required by applicable statutes, rules or regulations and Buyer shall pay all
costs and fees connected therewith. Seller shall furnish Buyer with all
pertinent recording data and evidence of all such required filings. Buyer shall
be responsible for any and all transfer fees or taxes that may be assessed on
the sale of the Properties.

     10.3 Further Assurance. At the Closing and thereafter as may be necessary,
the Seller and Buyer shall execute, acknowledge and deliver such other
instruments and take such other action as may be reasonably necessary to carry
out their obligations under this Agreement.

     10.4 Amendments and Severability. No alterations, modifications,
amendments, or changes in this Agreement shall be effective or binding unless
the same shall be in writing and signed by Seller and Buyer. The invalidity of
any one or more covenants or provisions of this Agreement shall not affect the
validity of the Agreement as a whole, and in case of any such invalidity, this
Agreement shall be construed as if such invalid provision had not been included
herein.

     10.5 Successor and Assigns. The terms, covenants and conditions hereof
shall be binding upon and shall inure to the benefit of Seller and Buyer and
their respective successors and assigns; and such terms, covenants and
conditions shall be covenants running with the land and with each subsequent
transfer or assignment of the Properties.

     10.6 Headings. The titles and headings in this Agreement have been included
solely for ease of reference and shall not be considered in the interpretation
or construction of this Agreement.

     10.7 Securities Laws. Buyer shall notify Seller or Seller shall notify
Buyer, whichever is applicable, promptly of any federal and/or state securities
law(s) or Federal Trade Commission filing requirements and/or any other
disclosure requirements to which it believes it may be subject with respect to
the transactions provided for in this agreement. Buyer hereby agrees not to
identify Seller in any press release or filing with the Securities and Exchange
Commission unless required by SEC or State laws.

     10.8 Media Releases or Other Disclosures to Third Parties or Shareholders.
Neither party, unless required to do so by law, shall release any information to
the press, other media shareholders or other third parties regarding this
purchase and sale. A party may release information to the extent required by law
or an applicable stock exchange but shall, to the extent possible, consult with
and consider in good faith the comments of the other party as to the content of
the release. The identity of the Seller, the names of specific wells or leases
or the specific locations or legal descriptions of specific wells or leases
shall not be disclosed in any release or disclosure of any kind or nature unless
required by SEC or state laws. Nor shall a copy of this Agreement be enclosed or
included within any such release unless required by SEC or state laws.

     10.9 Governing Law. THIS CONTRACT SHALL BE GOVERNED BY AND CONSTRUED UNDER
THE LAWS OF THE STATE OF COLORADO.

     10.10 Fax Execution. An executed copy of this Agreement transmitted by
facsimile delivery shall have the same effect as if the originally executed
Agreement had been delivered. This Agreement may be executed in multiple
counterparts, each of which shall be considered an original for all purposes.

     10.11 Assignment. This Agreement may not be assigned without the prior
written consent of the other parties. For purposes of this provision, a merger
shall not be considered an assignment.

     10.12 Exhibits. The following exhibits which are attached hereto are
incorporated into this Agreement and made a part hereof:

          Exhibit A         Leases and Lands
          Exhibit B         Wells/Working Interests/Net Revenue Interests
          Exhibit C         Reserved Properties
          Exhibit D         Assignment, Bill of Sale and Conveyance
          Exhibit E         Allocated Values
          Exhibit F         Agreed Imbalances

     10.13 Survival. The representations and warranties set forth in this
Agreement shall survive the Closing for a period of one year. A claim for a
breach of a representation or warranty must be made on or before one year after
Closing. Delivery of the Assignment at Closing will not constitute a merger of
this Agreement with such Assignment.

     10.14 Limitation on Damages. The Parties shall not have any liability to
each other for consequential, special, punitive or exemplary damages arising out
of or related to a Party's breach of any provision of this Agreement.

     10.15 No Third-Party Beneficiaries. This Agreement is intended to benefit
only the Parties hereto and their respective permitted successors and assigns.
There are no third party beneficiaries to this Agreement.

     10.16 Several Liabilities of the Seller. All of Seller's liabilities and
obligations under this Agreement shall be several among each of the entities
comprising Seller, and not joint. In addition, the liability and obligations of
each Seller under the terms of this Agreement shall be tied directly to the
Properties owned by each Seller and capped at the amount of the Purchase Price
received at Closing by that particular Seller. Buyer hereby waives and releases
each of the entities and individuals comprising Seller from any liabilities and
obligations above each Seller's cap described in the preceding sentence.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and
year set forth below, but effective as of the Effective Date.

                                    SELLER:
                                    TUCKER FAMILY INVESTMENTS, LLLP

                                    By:
                                        -------------------------------------
                                    Name:
                                        -------------------------------------
                                    Title:
                                        -------------------------------------

                                    DNR OIL & GAS, INC.

                                    By:
                                        -------------------------------------
                                    Name:
                                        -------------------------------------
                                    Title:
                                        -------------------------------------

                                    TINDALL OPERATING CO.

                                    By:
                                        -------------------------------------
                                    Name:
                                        -------------------------------------
                                    Title:
                                        -------------------------------------

                                    BUYER:
                                    COLORADO OIL AND GAS, INC.

                                    By:
                                        -------------------------------------
                                    Name:
                                        -------------------------------------
                                    Title:
                                        -------------------------------------

<PAGE>

                                   EXHIBIT "A"

                                  LEASES/LANDS
                                  ------------

<PAGE>

                                                                     Page 1 of 4

                                   EXHIBIT "A"

SPLIT TABLE - SEE BELOW

<TABLE>
<CAPTION>

ILSR LSE                                                         LSE EX                    RECORDING
NUMBER       LESSOR                 LESSEE                       DATE        COUNTY  ST   BOOK  PAGE
--------------------------------------------------------------------------------------------------------
          <C>                    <C>                          <C>         <C>     <C>  <C>   <C>
CO-1048-01   Sheppard, Dorothy W.   Energy Minerals Corporation  12/9/1982   Weld     CO   984   1911276
CO-1048-02   Sheppard, Ray D.                                    12/9/1982   Weld     CO

CO-1041-01   Nickerson, Albert M.   Energy Minerals Corporation  4/23/1981   Weld     CO   960   1111991

CO-1043-00   Llad, Kenneth          Energy Minerals Corporation  1/15/1982   Weld     CO   968  18982389

CO-1072-01   Castor, Delbert D.     Energy Minerals Corporation   3/5/1990   Weld     CO  1258   2208158
CO-1072-02   Wagner, Carl D.        Energy Minerals Corporation  3/12/1990   Weld     CO  1262   2211667
</TABLE>

SPLIT TABLE - SEE ABOVE

ILSR LSE                                                          WI/HRX &
NUMBER       LESSOR                 TWP  RGE  SBC   DESCRIPTION   ASSIGNED
------------------------------------------------------------------------------

CO-1048-01   Sheppard, Dorothy W.   7N   58W   7    NE/4NW4       100.00/80.00
CO-1048-02   Sheppard, Ray D.       7N   58W   7    NE/4NW4       100.00/80.00

CO-1041-01   Nickerson, Albert M.   7N   58W  18    SW/4NW4       100.00/80.00

CO-1043-00   Llad, Kenneth          7N   59W  13    SW/4NW4       100.00/80.00

CO-1072-01   Castor, Delbert D.     7N   59W  27    SW/4NW4       100.00/80.00
CO-1072-02   Wagner, Carl D.        7N   59W  27    SW/4NW4       100.00/80.00

<PAGE>

                                                                     Page 2 of 4

                              EXHIBIT "A" CONTINUED

SPLIT TABLE - SEE BELOW

<TABLE>
<CAPTION>

ILSR LSE                                                              LSE EX               RECORDING
NUMBER      LESSOR                      LESSEE                        DATE      COUNTY ST  BOOK  PAGE
--------------------------------------------------------------------------------------------------------
<S>         <C>                         <C>                           <C>       <C>    <C> <C>   <C>
CO-1072-03  Wagner, Cecile              Energy Minerals Corporation   3/12/1990 WELD   CO  1262  2211668
CO-1072-04  Billops, Ford L.            Energy Minerals Corporation   3/12/1990 WELD   CO  1260  2210348
CO-1072-05  Debee, Margaret E.          Energy Minerals Corporation   3/22/1990 WELD   CO  1263  2212825
CO-1072-06  Harris, W.I.                Energy Minerals Corporation   4/6/1990  WELD   CO  1261  2212826
CO-1072-07  Global Natural Resources
            Corporation                 Energy Minerals Corporation   2/14/1990 WELD   CO  1262  2211671
CO-1072-08  Pacific Enterprises Oil
            Company                     Energy Minerals Corporation   3/2/1990  WELD   CO  1262  2211670
CO-1072-09  Franks, Roy M., III         Energy Minerals Corporation   3/14/1990 WELD   CO  1263  3212827
CO-1072-10  Britton, Eugenia L.         Energy Minerals Corporation   3/14/1990 WELD   CO  1263  2212828
CO-1072-11  Franks, Eugnia N.           Energy Minerals Corporation   3/14/1990 WELD   CO  1263  2212829
CO-1072-12  Johnson, Lorea R.           Energy Minerals Corporation   4/23/1990 WELD   CO  1263  2212830
CO-1072-13  Ivson, Dawg, J.             Energy Minerals Corporation   4/23/1990 WELD   CO  1263  2212831
CO-1072-14  Wilmed, Norma Mac Johnson   Energy Minerals Corporation   4/23/1990 WELD   CO  1264  2213894
CO-1072-15  Johnson, Daniel             Energy Minerals Corporation   4/23/1990 WELD   CO  1264  3213893
CO-1072-16  Johnson, Joanna             Energy Minerals Corporation   4/23/1990 WELD   CO  1264  3214466
CO-1072-17  Johnson, Geroge J.          Energy Minerals Corporation   4/23/1990 WELD   CO  1264  3214467
CO-1072-18  Willard, Alice K.           Energy Minerals Corporation   4/23/1990 WELD   CO  1264  3214319
CO-1072-21  Snow, Eloise J.             Energy Minerals Corporation   4/23/1990 WELD   CO  1265  2218339

CO-1071-00  Castor, Delbert D.          Energy Minerals Corporation   3/5/1990  WELD   CO  1258  2208156
</TABLE>

SPLIT TABLE - SEE ABOVE

ILSR LSE                                                            WI/HRX &
NUMBER      LESSOR                     TWP  RGE  SBC   DESCRIPTION  ASSIGNED
--------------------------------------------------------------------------------

CO-1072-03  Wagner, Cecile             7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-04  Billops, Ford L.           7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-05  Debee, Margaret E.         7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-06  Harris, W.I.               7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-07  Global Natural Resources
            Corporation                7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-08  Pacific Enterprises Oil
            Company                    7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-09  Franks, Roy M., III        7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-10  Britton, Eugenia L.        7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-11  Franks, Eugnia N.          7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-12  Johnson, Lorea R.          7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-13  Ivson, Dawg, J.            7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-14  Wilmed, Norma Mac Johnson  7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-15  Johnson, Daniel            7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-16  Johnson, Joanna            7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-17  Johnson, Geroge J.         7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-18  Willard, Alice K.          7N   59W  27    SW/4 NW4     100.00/80.00
CO-1072-21  Snow, Eloise J.            7N   59W  27    SW/4 NW4     100.00/80.00

CO-1071-00  Castor, Delbert D.         7N   59W  27    SW/4 NW4     100.00/80.00

<PAGE>

                                                                     Page 3 of 4
                              EXHIBIT "A" CONTINUED

<PAGE>

<TABLE>
<CAPTION>

                            Lease
                            Date         Book  Page Lessor                          Lessee  Property Description  WI/NRI  % Assigned
------------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>          <C>   <C>  <C>                             <C>     <C>                    <C>     <C>
Morgan County, Colorado

Wilcat Ranches #1                         809   15  Shirley H. Halligan, Trustee    Township 6 North, Range 59
                                                                                    West Section 35: NE/4 SE/4    100.00  80.00
                                          809   11  Wildcat Ranches                 Township 6 North, Range 59
                                                                                    West Section 35: NE/4 SE/4    100.00  80.00
                                          809  626  Denver Basin Oil Company and
                                                    First National Bank of Denver   Township 6 North, Range 59
                                                                                    West Section 35: NE/4 SE/4    100.00  80.00
------------------------------------------------------------------------------------------------------------------------------------
Arapahoe County, Colorado

Car 81-8                    9/26/1984    4292  390  Georgia Naxine Cox              Township 5 South, Range 59
                                                                                    West Section 62 West
                                                                                    Section 8: NE/4 SW/4           12.75  10.20
------------------------------------------------------------------------------------------------------------------------------------
Yuma County, Colorado

Seahaer #1-T5               5/8/1976      497  164  C.K. Soehner, ET UX             Township 3 South, Range 42
                                                                                    West Section 15:100.00        100.00  80.00
                            6/4/1975      497  162  Irene H. Schuricht              Township 3 South, Range 42
                                                                                    West Section 15:100.00        100.00  80.00
                            5/9/1975      497  142  K & L Land Enterprise           Township 3 South, Range 42
                                                                                    West Section 15:100.00        100.00  80.00
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                     Page 4 of 4

                              EXHIBIT "A" CONTINUED

                  Lease
                  Date        Book  Page    Lessor                  Lessee  Property Description            WI/NRI      % Assigned
------------------------------------------------------------------------------------------------------------------------------------

<S>               <C>         <C>   <C>     <C>                     <C>     <C>                             <C>         <C>
Cheyenne County,
Coloado

UPRC #1-25         2/28/1996  Recep-
                              tion  214765  Union Pacific Land              Township 13 South, Range 42
                                            Resources Company               West Section 25: N/2            100.00      79.50

Champlain-Hanavan  5/22/1972   188     177  Champlain Petroleum             Township 13 South, Range 44
#2-21                                            Company                         West Section 21: W/2 SW/4,
                                                                            E/2 NW/4                         69.62463    55.17755
------------------------------------------------------------------------------------------------------------------------------------

Baca County,
Colorado

Cook #1-5           6/9/1960   339     309  Elmer E. Cook, ET UX            Township 33 South, Range 43
                                                                            West Section  Section            99.33424    79.467392

                    6/9/1960   339     279  Roland Cook, ET UX              Township 33 South, Range 43

                                                                            West Section lots 1 & 2, S/2     99.334241   79.467392
                    8/5/1960   341     317  Ivory E. Dotson, ET UX          Township 33 South, Range 43
                                                                            West Section  & 4, S/2           99.334243   79.467392

Sloan #A-1
                   9/15/1983   502     182  Loretta Howell                  Township 33 South, Range 41
                                                                            West Section 9: Lots 3, 4,
                                                                            W/2 SE/4, SW/4 NE/4             100.00       80.00

                   9/15/1983   502     176  Delphine Turner                 Township 33 South, Range 41
                                                                            West Section 9: Lots 3, 4, W/2
                                                                            SE/4, SW/4 NE/4                 100.00       80.00

                   9/15/1983   502     179  Margaret Forbes                 Township 33 South, Range 41
                                                                            West Section 9: Lots 3, 4, W/2
                                                                            SE/4, SW/4 NE/4                 100.00       80.00

                  10/12/1983   503     276  Commerce Ranch, Inc.            Township 33 South, Range 41
                                                                            West Section 9: Lots 1, 2,
                                                                            NW/4 NE/4                       100.00       80.00
</TABLE>

                         End of EXHIBIT "A"

<PAGE>

                                   EXHIBIT "B"

                                      WELLS
                                      -----

<PAGE>

                                   EXHIBIT "B"

Wells              County      ST    Legal             WI            NRI

#1-8 COX           ARAPAHOE    CO    NESW 8-5S-62W     0.12750000    0.10200000
# 1 BETTY JEN      WELD        CO    SWNW 27-7N-59W    1.00000000    0.80000000
#1 DELBERT         WELD        CO    NESW 27-7N-59W    1.00000000    0.80000000
#1 DOROTHY         WELD        CO    NWNE 7-7N-58W     1.00000000    0.80000000
#3 LIND            WELD        CO    SWNE 13-7N-59W    1.00000000    0.80000000
#4 NICKERSON       WELD        CO    SWNW 18-7N-58W    1.00000000    0.80000000
#1 WILDCAT RANCH   MORGAN      CO    NESE 35-6N-59W    1.00000000    0.80000000
#1 COOK            BACA        CO    SESE 5-33S-43W    0.99334240    0.79467392
#A-1 SLOAN         BACA        CO    SE 9-33S-41W      1.00000000    0.80000000
#1-25 UPRR         CHEYENNE    CO    NENE 25-13S-42W   1.00000000    0.07950000
#3-21 CHAMPLIN     CHEYENNE    CO    SWSW 21-13S-44W   0.06962463    0.55199550
#1-15 SOEHNER      YUMA        CO    NW 15-3S-42W      1.00000000    0.80000000
#1-9 K&L           YUMA        CO    SE 9-3S-42W       1.00000000    0.80000000

<PAGE>

                                   EXHIBIT "C"

                      EXHIBIT "C" INTENTIONALLY LEFT BLANK

<PAGE>

                                   EXHIBIT "D"

                      EXHIBIT "D" INTENTIONALLY LEFT BLANK

<PAGE>

                                   EXHIBIT "D"

                    ASSIGNMENT,. BILL OF SALE AND CONVEYANCE

     THIS ASSIGNMENT, BILL OF SALE AND CONVEYANCE (" Assignment"), dated
effective June 1,:2005 at 7:00 a.m. Mountain Time (the "Effective Time"), TUCKER
FAMILY INVESTMENTS. LLLP, a Colorado limited liability limited partnership,
12741 E. Caley, Unit 142, Englewood, Colorado 80 III ("Tucker"); DNR OIL & GAS,
INC., a Colorado corporation, 12741 E. Caley, Unit 142, Englewood, Colorado
80111 ("DNRj; and TINDALL OPERATING CO., a Colorado corporation, 12741 E. Caley,
Unit 142, Englewood, Colorado 80111 ("Tindall"). (Tucker, DNR and Tindall may
hereinafter collectively be referred to as "Assignor" or "Seller"); and COLORADO
OIL AND GAS, INC., 7260 Osceola Street, Westminster, Colorado 80030 ("Assignee"
or "Buyer").:.

     For S 100.00 and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Assignor hereby sells, assigns,
transfers, grants, bargains and conveys to Assignee all of Assignor's right,
tide and interest in and to the following real and personal property interests
(collectively, the "Assets"):

     a. The oil and gas leases described in Exhibit A (the "~"), insofar as said
Leases cover the land described in Exhibit A (the "Land" or "Lands"), together
with all the property and rights incident thereto and the contracts and
agreements relating to the Leases and Land, all operating agreements.
exploration agreements, pooling, communitization and unitization agreements,
farmout agreements, surface use agreements. product purchase and sale contracts,
transportation, processing, treatment or gathering agreements. leases, permits,
rights-of-way, easements, licenses, declarations, orders, contracts. and
instruments in any way relating to the Leases;

     b. The oil and gas wells specifically described in Exhibit B (the "Wells"),
together with all injection and disposal wells on the Leases or Lands or on
lands pooled or unitized therewith. and all personal property, equipment,
fixtures, improvements, permits, rights of-way and easements used in connection
with the production, gathering, treatment, processing, storing, sale or disposal
of hydrocarbons or water produced from the properties and interests described in
subsection a.;

     c. The pooling and communitization agreements. declarations and orders. and
all other such agreements relating to the properties and interests described in
subsections a. and b. and to the production of Hydrocarbon, if any, attributable
to said properties and interests;

     d. All existing and effective sales, purchase, exchange, gathering,
transportation and processing contracts, operating agreements, balancing
agreements, farmout agreements, service agreements, and other contracts,
agreements and instruments insofar as they relate to the properties and
interests described in subsections a. through c.;

     e. The oil, gas and water gathering, pipeline and transportation systems
and all personal property, equipment, fixtures, improvements, permits,
rights-of-way. surface leases and easements used in connection therewith and all
contracts and agreements relating thereto; and

<PAGE>

     f. The files. records, and data of Assignor relating to the items described
in subsections a. through e. above (the "Records");

provided however, that Assignor hereby reserves the following overriding royalty
interest.

                 [add language reserving the overriding royalty]

TO HAVE AND TO HOLD the Assets unto Assignee and its successors and assigns
forever.

This Assignment is made subject to the following terms and conditions;

     A. This Assignment is being made pursuant to the terms of the Purchase and
Sale Agreement dated effective June 1, 2005, between Assignor and Assignee (the
"PSA"). All capitalzed terms used but not otherwise defined herein shall have
the respective meanings ascribed to them in the PSA. If there is a conflict
between the terms of this Assignment and the terms of the PSA, the terms of the
PSA shall control in all respects. The Assignor and Assignee intend that the
terms of the PSA remain separate and distinct from and not merge into the terms
of this Assignment

     B. ASSIGNOR WARRANTS TITLE TO 1JIE ASSETS FROM AND AGAINST ALL PERSONS
CLAIMING BY, THROUGH AND UNDER ASSIGNOR, BUT NOT OTHERWISE, AND EXCEPT FOR THAT
WARRANTY, THIS ASSIGNMENT IS MADE WITHOUT WARRANTY OF ANY KIND, EXPRESS, IMPLIED
OR STATUTORY.

     C. ASSIGNOR EXPRESSLY DISCLAIMS AND NEGATES ANYW ARRANTY AS TO THE
CONDITION OF ANY PERSONAL PROPERTY, EQUIPMENT, FIXTURES AND ITEMS OF MOVABLE
PROPERTY COMPRISING ANY PART OF THE ASSETS, INCLUDING (i) ANY IMPLIED OR EXPRESS
WARRANTY OF MERCHANTABILITY, (ii) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR
A PARTICULAR PURPOSE, (ui) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO
MODELS OR SAMPLES OF MATERIALS, (iv) ANY RIGHTS OF ASSIGNEE UNDER APPLICABLE
STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, AND (v) ANY CLAIM BY ASSIGNEE FOR
DAMAGES BECAUSE OF DEFECI'S, WHETHER KNOWN OR UNKNOWN BEING EXPRESSLY UNDERSTOOD
BY ASSIGNEE THAT SAID PERSONAL PROPER1Y, FIXI1JRES, EQUIPMENT AND ITEMS ARE
BEING CONVEYED TO ASSIGNEE "AS IS, WHERE IS," WITH ALL FAULTS AND IN THEIR
PRESENT CONDITION AND STATE OF REPAIR; PROVIDED, HOWEVER, THAT NOTHING CONTAINED
IN THIS ASSIGNMENT SHALL LIMIT ANY OF ASSIGNOR'S INDEMNITY OBLIGATIONS UNDER THE
PSA.

     D. To the extent permitted by law, Assignee shall be subrogated to
Assignor's rights in and to representations, warranties and covenants given with
respect to the Assets. Assignor hereby grants and transfers to Ass~ its
successors and assigns, to the extent so transferable and permitted by law, the
benefit of and the right to enforce the covenants, representations and
warranties, if any, which Assignor is entitled to enforce with respect to the
Assets, but only to the extent not enforced by Assignor.

<PAGE>

     E. Assignee assumes and agrees to pay, perform, fulfi11 and discharge its
proportionate share of all claims, costs, expenses, liabilities and obligations
accruing or relating to the owning, developing. exploring, operating or
maintaining of the Assets after the Effective TlME, and all obligations arising
under aCXements covering or relating to the Assets, all as more particularly set
forth in the PSA. Assignor and Assignee have apportioned other liabilities and
obligations in the PSA

     F. The references herein to liens, encumbrances, burdens, defects and other
matters shall not be deemed to ratify or create any rights in third parties or
merge with, modify or limit the rights of Assignor or Assignee, as between
themselves, as set forth in the PSA or other documents executed in connection
therewith.

     G. Assignor to Assignee may execute separate governmental form assignments
of the Assets on officially approved forms, in sufficient counterparts to
satisfy applicable statutory and regulatory requirements. Those assignments
shall ~ deemed to contain all of the exceptions, reservations, warranties,
rights, titles, power and privileges set forth herein as fully as though they
were set forth in each such assignment. The interests conveyed by such separate
assignments are the same, and not in addition to, the Assets conveyed herein.

     H. This Assignment binds and inures to the benefit of Assignor and Assignee
and their respective successors and assigns.

     1. This Assignment may be executed in any number of counterparts, each of
which shall be deemed an original and all of which taken together shall
constitute but one and the same instrument. EXECUTED on the dates contained in
the acknowledgments of this Assignment, to be effective for all purposes as of
the Effective Time.

ASSIGNOR:

TUCKER FAMILY INVESTMENTS, LLLP

By: /s/
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

DNR OIL & GAS, INC.

By: /s/
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

<PAGE>

TINDALL OPERATING CO.

By:/s/
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

ASSIGNEE:
COLORADO OIL AND GAS, IN.C.

By:/s/
   -------------------------------
Name:
     -----------------------------
Title:
      ----------------------------

                                ACKNOWLEDGEMENTS
                                ----------------

STATE OF COLORADO          )
CITY AND                   ) .ss
COUNTY OF DENVER           )

The foregoing instrument was acknowledged before me this ___ day of ____ 2005,
by_________ , as __________ of TUCKER FAMILY INVESTMENTS, LLLP, a .Colorado
limited liability limited partnership, on behalf of such partnership.

        Witness my hand and official seal.
My Commission Expires:
                      ------------

                                            --------------------------------
                                            Notary Public
                                            Name:
                                            Address:

[seal]

STATE OF COLORADO          )
CITY AND                   ) .ss
COUNTY OF DENVER           )

The foregoing instrument was acknowledged before me this____ day of _____ 2005,
by________, as________ of DNR OIL & GAS, INC, a Colorado corporation, on behalf
of such corporation.

        Witness my hand and official seal.
My Commission Expires:
                      ------------

                                            --------------------------------
                                            Notary Public
                                            Name:
                                            Address:

[seal]

<PAGE>

STATE OF COLORADO          )
CITY AND                   ) .ss
COUNTY OF DENVER           )

The forgoing instrument was acknowledged before me this ______ day of
_______2005, by _________, as_________ of TINDALL OPERATING CO. a Colorado
corporation, on behalf of such corporation.

        Witness my hand and official seal.
My Commission Expires:
                      ------------

                                            --------------------------------
                                            Notary Public
                                            Name:
                                            Address:

[seal]

STATE OF COLORADO          )
CITY AND                   ) .ss
COUNTY OF DENVER           )

The foregoing instrument was aclcnowledged before me this ______ day of______
2005, by__________, as _________ of COLORADO OIL AND GAS, INC., a Colorado
corporation, on behalf of such corporation.

        Witness my hand and official seal.
My Commission Expires: __________

                                            --------------------------------
                                            Notary Public
                                            Name:
                                            Address:

[seal]

<PAGE>

                                   EXHIBIT "E"

<TABLE>
<CAPTION>

Wells             County       ST     Legal               WI          NRI            VALUATION
-----             ------       --     -----               --          ---            ---------
<S>               <C>          <C>    <C>                 <C>         <C>            <C>
#1-8 COX          ARAPAHOE     CO     NESW 8-5S-62W       0.12750000  0.10200000        16.42
# 1 BETTY JEN     WELD         CO     SWNW 27-7N-59W      1.00000000  0.80000000       233.68
#1 DELBERT        WELD         CO     NESW 27-7N-59W      1.00000000  0.80000000       261.93
#1 DOROTHY        WELD         CO     NWNE 7-7N-58W       1.00000000  0.80000000       293.83
#3 LIND           WELD         CO     SWNE 13-7N-59W      1.00000000  0.80000000       121.28
#4 NICKERSON      WELD         CO     SWNW 18-7N-58W      1.00000000  0.80000000      1151.30
#1 WILDCAT RANCH  MORGAN       CO     NESE 35-6N-59W      1.00000000  0.80000000       145.36
#1 COOK           BACA         CO     SESE 5-33S-43W      0.99334240  0.79467392        72.67
#A-1 SLOAN        BACA         CO     SE 9-33S-41W        1.00000000  0.80000000        77.66
#1-25 UPRR        CHEYENNE     CO     NENE 25-13S-42W     1.00000000  0.07950000        53.65
#3-21 CHAMPLIN    CHEYENNE     CO     SWSW 21-13S-44W     0.06962463  0.55199550         0.00
#1-15 SOEHNER     YUMA         CO     NW 15-3S-42W        1.00000000  0.80000000        47.80
#1-9 K&L          YUMA         CO     SE 9-3S-42W         1.00000000  0.80000000        24.42

</TABLE>

<PAGE>

                                    EXHIBIT F

                                AGREED IMBALANCES
                                -----------------

Shall be agreed to as that imbalance noted (as of the effective dates) on the
Bitter Creek Pipeline, LLC, Imbalances Summary Report.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]