Document:

ex10-5.htm

    Exhibit 10.5

    MASTER
      SECURITY AGREEMENT

     

    
      	
              To:

            	
              LV
                Administrative Services Inc., as
                Agent

            

    

    
      	
               

            	
              c/o
                Valens Capital Management, LLC

            

    

    
      	
               

            	
              335
                Madison Avenue, 10th
                Floor

            

    

    
      	
               

            	
              New
                York, NY 10017

            

    

     

    Date:
      November 20, 2007

     

    To
      Whom
      It May Concern:

     

    1.           To
      secure the payment of all Obligations (as hereafter defined), Gulf Coast Oil
      Corporation, a Delaware corporation (the “Company”), each of the other
      undersigned parties (other than the Agent (as defined below)) and each other
      entity that is required to enter into this Master Security Agreement (each
      an
“Assignor” and, collectively, the “Assignors”) hereby assigns and
      grants to the Agent, for the ratable benefit of the Creditor Parties (as defined
      in the Securities Purchase Agreement referred to below), a continuing security
      interest in all of the following property now owned or at any time hereafter
      acquired by such Assignor, or in which such Assignor now has or at any time
      in
      the future may acquire any right, title, interest or estate (the
“Collateral”):

     

    (a)           all
      cash, cash equivalents, accounts, accounts receivable, deposit accounts
      (including, without limitation, the  Lockbox Deposit Account
      maintained at North Fork Bank (Account Name:  Gulf Coast Oil
      Corporation, Account Numbers:  XXX-XXXXXXX, inventory, equipment,
      goods, fixtures, documents, instruments (including, without limitation,
      promissory notes), contract rights, commercial tort claims set forth on
Schedule A attached hereto, general intangibles (including, without
      limitation, payment intangibles and an absolute right to license on terms no
      less favorable than those currently in effect among such Assignor’s affiliates),
      chattel paper, supporting obligations, investment property (including, without
      limitation, all partnership interests, limited liability company membership
      interests and all other equity interests owned by any Assignor),
      letter-of-credit rights, trademarks, trademark applications, tradestyles,
      patents, patent applications, copyrights, copyright applications and other
      intellectual property in which such Assignor now has or hereafter may acquire
      any right, title, interest or estate, all proceeds and products thereof
      (including, without limitation, proceeds of insurance) and all additions,
      accessions and substitutions thereto or therefor.

     

    (b)           all
      of those certain Oil and Gas Leases and Lands (each as hereinafter defined)
      which are described in Schedule B and/or to which reference may be
      made in Schedule B and/or which are covered by any of the leases
      described on Schedule B hereto (all such Oil and Gas Leases and
      Lands being herein called the “Subject Interests”);

     

    (c)           all
      rights, titles, interests and estates now owned or hereafter acquired by such
      Assignor in and to (i) any and all properties now or hereafter pooled or
      unitized with any of the Subject Interests, and (ii) all presently existing
      or
      future operating agreements and unitization, communitization and pooling
      agreements and the units operated thereby to
      the
      extent the same relate to all or any part of the Subject Interests, including,
      without limitation, all units formed under or pursuant to any applicable laws
      (the rights, titles, interests and estates described in this clause (c) also
      being included within the term “Subject Interests” as used herein);

     

    (d)           all
      presently existing and future agreements entered into between such Assignor
      and
      any third party that provide for the acquisition by such Assignor of any
      interest in any of the properties or interests specifically described in
Schedule B or which relate to any of the properties and interests
      specifically described in Schedule B;

     

    (e)           the
      Hydrocarbons (including inventory) which are in, under, upon, produced or to
      be
      produced from or attributable to the Lands;

     

    (f)           
      the Accounts and Contract Rights;

     

    (g)           
      the Operating Equipment;

     

    (h)           
      the Well Data;

     

    (i)            the
      rights and security interests of such Assignor held by such Assignor to secure
      the obligation of the first purchaser to pay the purchase price of the
      Hydrocarbons;

     

    (j)            
      all surface leases, rights-of-way, franchises, easements, servitudes, licenses,
      privileges, tenements, hereditaments and appurtenances now existing or in the
      future obtained in connection with any of the aforesaid, and all other items
      of
      value and incident thereto which such Assignor may, at any time, have or be
      entitled; and

     

    (k)           
      all and any different and additional rights of any nature, value or convenience
      in the enjoyment, development, operation or production, in any way, of any
      property or interest included in any of the foregoing clauses, and in all
      revenues, income, rents, issues, profits and other benefits arising therefrom
      or
      from any contract now in existence or hereafter entered into pertaining thereto,
      and in all rights and claims accrued or to accrue for the removal by anyone
      of
      Hydrocarbons from, or other act causing damage to, any of such properties or
      interests.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    All
      the
      aforesaid properties, rights and interests, together with all proceeds and
      products thereof (including, without limitation, proceeds of insurance) and
      any
      and all accessions, substitutions, replacements, corrections or amendments
      thereto or therefor, or renewals, extensions or ratifications thereof, or of
      any
      instrument relating thereto, and together with any additions thereto which
      may
      be subject to the Agent’s Lien (as defined below), being hereinafter called the
“Collateral”.

     

    As
      used
      herein, the following terms shall have the following meanings:

     

    “Accounts
      and Contract Rights” shall mean all accounts (including accounts in the form
      of joint interest billings under applicable operating agreements), contract
      rights and general intangibles of any Assignor now or hereafter existing, or
      hereafter acquired by, or on behalf of, any
      Assignor, or any Assignor’s successors in interest, relating to or arising from
      the ownership, operation and development of the Collateral and to the
      production, processing, treating, sale, purchase, exchange or transportation
      of
      Hydrocarbons (defined below) produced or to be produced from or attributable
      to
      the Collateral or any units or pooled interest units in which all or a portion
      of the Collateral forms a part, together with all accounts and proceeds accruing
      to any Assignor attributable to the sale of Hydrocarbons produced from the
      Collateral or any units or pooled interest units in which all or a portion
      of
      the Collateral forms a part.

     

    “Hydrocarbons”
      shall mean oil, gas, coalbed methane gas, casinghead gas, drip gasolines,
      natural gasoline, condensate, distillate, as-extracted collateral and all other
      liquid or gaseous hydrocarbons produced or to be produced in conjunction
      therewith, and all products, byproducts and all other substances derived
      therefrom or the processing thereof, and all other minerals and substances,
      including, but not limited to, sulphur, lignite, coal, uranium, thorium, iron,
      geothermal steam, water, carbon dioxide, helium and any and all other minerals,
      ores, or substances of value and the products and proceeds therefrom, including,
      without limitation, all gas resulting from the in-situ combustion of coal or
      lignite.

     

    “Lands”
      shall mean the lands described in Schedule B and shall include any
      lands, the description of which is contained in Schedule B or
      incorporated in Schedule B by reference to another instrument or
      document, including, without limitation, all lands described in the Oil and
      Gas
      Leases listed on Schedule B hereto, and shall also include any lands
      now or hereafter unitized, pooled, spaced or otherwise combined, whether by
      statute, order, agreement, declaration or otherwise, with lands the description
      of which is contained in Schedule B or is incorporated in
Schedule B by reference.

     

    “Lien”
      shall mean any mortgage, deed of trust, collateral assignment, lien, pledge,
      charge, security interest or other encumbrance.

     

    “Oil
      and Gas Leases” shall mean oil, gas and mineral leases, oil and gas leases,
      oil leases, gas leases, other mineral leases, subleases, top leases, any rights
      resulting in an ownership interest in Hydrocarbons and all operating rights
      relating to any of the foregoing (whether operated by virtue of such leases,
      or
      assignments or applicable operating agreements), and all other interests
      pertaining to any of the foregoing, including, without limitation, all royalty
      and overriding royalty interests, production payments and net profit interests,
      mineral fee interests, and all reversionary, remainder, carried and contingent
      interests relating to any of the foregoing and all other rights therein which
      are described and/or to which reference may be made on
Schedule B.

     

    “Operating
      Equipment” shall mean all Personal Property and fixtures affixed or situated
      upon all or any part of the Collateral, including, without limitation, all
      surface or subsurface machinery, equipment, facilities or other property of
      whatsoever kind or nature now or hereafter located on any of the Lands which
      are
      useful for the production, treatment, storage or transportation of oil or gas,
      including, but not by way of limitation, all oil wells, gas wells, water wells,
      injection wells, casing, tubing, rods, pumping units and engines, Christmas
      trees, derricks, separators, gun barrels, flow lines, tanks, gas systems (for
      gathering, treating and compression), water systems (for treating, disposal
      and
      injection), power plants, poles, lines, transformers, starters
      and controllers, machine shops, tools, storage yards and equipment stored
      therein, buildings and camps, telegraph, telephone and other communication
      systems, roads, loading racks and shipping facilities.

     

    “Personal
      Property” shall mean that portion of the Collateral that is personal
      property.

     

    “Well
      Data” shall mean all logs, drilling reports, division orders, transfer
      orders, operating agreements, contracts and other agreements, abstracts, title
      opinions, files, records, seismic data, memoranda and other information in
      the
      possession or control of any Assignor or to which any Assignor has access
      relating to the Lands and/or any wells located thereon.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.           Except
      as otherwise defined herein, all capitalized terms used herein shall have the
      meanings provided such terms in the Securities Purchase Agreement referred
      to
      below.  All items of Collateral which are defined in the UCC shall
      have the meanings set forth in the UCC.  For purposes hereof, the term
“UCC”  means the Uniform Commercial Code as the same may, from
      time to time, be in effect in the State of New York; provided, that in the
      event
      that, by reason of mandatory provisions of law, any or all of the attachment,
      perfection or priority of, or remedies with respect to, the Agent’s security
      interest in any Collateral is governed by the Uniform Commercial Code as in
      effect in a jurisdiction other than the State of New York, the term “UCC” shall
      mean the Uniform Commercial Code as in effect in such other jurisdiction for
      purposes of the provisions of this Master Security Agreement relating to such
      attachment, perfection, priority or remedies and for purposes of definitions
      related to such provisions; provided further, that to the extent that the UCC
      is
      used to define any term herein and such term is defined differently in different
      Articles or Divisions of the UCC, the definition of such term contained in
      Article or Division 9 shall govern.

     

    3.           The
      term “Obligations” as used herein shall mean and include all debts,
      liabilities and obligations owing by each Assignor to any Creditor Party arising
      under, out of, or in connection with:  (i) that certain Securities
      Purchase Agreement dated as of the date hereof by and among the Company, the
      Purchasers (as therein defined) and the Agent (as amended, restated, modified
      and/or supplemented from time to time, the “Securities Purchase
      Agreement”) and (ii) the Related Agreements referred to in the Securities
      Purchase Agreement (the Securities Purchase Agreement and the Related
      Agreements, as each may be amended, restated, modified and/or supplemented
      from
      time to time, collectively, the “Documents”), and in connection with any
      documents, instruments or agreements relating to or executed in connection
      with
      the Documents or any documents, instruments or agreements referred to therein
      or
      otherwise, and in connection with any other indebtedness, obligations or
      liabilities of each such Assignor to any Creditor Party, whether now existing
      or
      hereafter arising, direct or indirect, liquidated or unliquidated, absolute
      or
      contingent, due or not due and whether under, pursuant to or evidenced by a
      note, agreement, guaranty, instrument or otherwise, including, without
      limitation, obligations and liabilities of each Assignor for post-petition
      interest, fees, costs and charges that accrue after the commencement of any
      case
      by or against such Assignor under any bankruptcy, insolvency, reorganization
      or
      like proceeding (collectively, the “Debtor Relief Laws”) in each case,
      irrespective of the genuineness, validity, regularity or enforceability of
      such
      Obligations, or of any instrument evidencing any of the Obligations or of any
      collateral therefor or of the existence or extent of such collateral, and
      irrespective of the allowability, allowance or disallowance
      of any or all of the Obligations in any case commenced by or against any
      Assignor under any Debtor Relief Law.

     

    4.           Each
      Assignor hereby jointly and severally represents, warrants and covenants to
      the
      Agent, for the benefit of the Creditor Parties, that:

     

    
      	
               

            	
              (a)

            	
              it
                is a corporation, partnership or limited liability company, as the
                case
                may be, validly existing, in good standing and formed under the respective
                laws of its jurisdiction of formation set forth on Schedule C,
                and each Assignor will provide the Agent thirty (30) days’ prior written
                notice of any change in any of its respective jurisdiction of
                formation;

            

    

     

    
      	
               

            	
              (b)

            	
              its
                legal name is as set forth in its Certificate of Incorporation or
                other
                organizational document (as applicable) as amended through the date
                hereof
                and as set forth on Schedule C attached hereto, and it will
                provide the Agent thirty (30) days’ prior written notice of any change in
                its legal name;

            

    

     

    
      	
               

            	
              (c)

            	
              its
                organizational identification number (if applicable) is as set forth
                on
                Schedule C hereto, and it will provide the Agent thirty (30)
                days’ prior written notice of any change in its organizational
                identification number;

            

    

     

    
      	
               

            	
              (d)

            	
              it
                is the lawful owner of its Collateral and it has the sole right to
                grant a
                security interest therein and will defend the Collateral against
                all
                claims and demands of all persons and
                entities;

            

    

     

    
      	
               

            	
              (e)

            	
              it
                will keep its Collateral free and clear of all attachments, levies,
                taxes,
                liens, security interests and encumbrances of every kind and nature
                (“Encumbrances”), except the Permitted
                Encumbrances;

            

    

     

    
      	
               

            	
              (f)

            	
              it
                will, at its and the other Assignors’ joint and several cost and expense,
                keep the Collateral in good state of repair (ordinary wear and tear
                excepted) and will not waste or destroy the same or any part thereof
                other
                than ordinary course discarding of items no longer used or useful
                in its
                or such other Assignors’ business;

            

    

     

    
      	
               

            	
              (g)

            	
              it
                will not, without the Agent’s prior written consent, sell, exchange, lease
                or otherwise dispose of any Collateral, whether by sale, lease or
                otherwise, except for the sale of inventory in the ordinary course
                of
                business and for the disposition or transfer in the ordinary course
                of
                business during any fiscal year of obsolete and worn-out equipment
                or
                equipment no longer necessary for its ongoing needs, having an aggregate
                fair market value of not more than $25,000 and only to the extent
                that:

            

    

     

    
      	
               

            	
              (i)

            	
              the
                proceeds of each such disposition are used to acquire replacement
                Collateral which is subject to the Agent’s perfected security interest
                (subject only to Permitted Encumbrances), or are used
                to repay the Obligations or to pay general corporate expenses;
                or

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               

            	
              (ii)

            	
              following
                the occurrence of an Event of Default which continues to exist the
                proceeds of each such disposition shall be remitted to the Agent
                to be
                held as cash collateral for the
                Obligations;

            

    

     

    
      	
               

            	
              (h)

            	
              (i)
                it will insure or cause the Collateral to be insured in the Agent’s name
                (as an additional insured and lender loss payee) against loss or
                damage by
                fire, theft, burglary, pilferage, loss in transit and such other
                hazards
                as the Agent shall specify in amounts and under policies by insurers
                acceptable to the Agent and all premiums thereon shall be paid by
                such
                Assignor and the policies delivered to the Agent.  If any such
                Assignor fails to do so, the Agent may procure such insurance and
                the cost
                thereof shall be promptly reimbursed by the Assignors, jointly and
                severally, and shall constitute
                Obligations;

            

    

     

    
      	
               

            	
              (ii)

            	
              it
                will expressly agree that if additional loss payees and/or lender
                loss
                payees, other than the Agent or Laurus Master Fund, Ltd.
                (“Laurus”), are named to the Collateral, the Agent will always be
                assigned to first lien position (or, if Laurus is so named, a second
                lien
                position subject only to Laurus’ priority lien position) until all
                Obligations have been satisfied;

            

    

     

    
      	
               

            	
              (i)

            	
              it
                will at all reasonable times allow the Creditor Parties or their
                respective representatives free access to and the right of inspection
                of
                the Collateral;

            

    

     

    (j)           such
      Assignor (jointly and severally with each other Assignor) hereby indemnifies
      and
      saves the Agent and each other Creditor Party harmless from any and all loss,
      costs, liability, expense, claim, obligation, and/or damage, including
      reasonable attorneys’ fees and other legal expenses, that the Agent and each
      other Creditor Party may sustain or incur to enforce payment, performance or
      fulfillment of any of the Obligations and/or in the enforcement of this Master
      Security Agreement or in the prosecution or defense of any action or proceeding
      either against the Agent, any other Creditor Party or any Assignor concerning
      any matter growing out of or in connection with this Master Security Agreement,
      and/or any of the Obligations and/or any of the Collateral except to the extent
      caused by the Agent’s or any other Creditor Party’s own gross negligence or
      willful misconduct (as determined by a court of competent jurisdiction in a
      final and non-appealable decision).  In addition, each Assignor hereby
      indemnifies and saves the Agent and each other Creditor Party harmless from
      any
      and all loss, costs, liability, expense, claim, obligation, and/or damage,
      including reasonable attorneys’ fees and other legal expenses, of any nature,
      incurred by or imposed upon the Agent or any other Creditor Party which results,
      arises out of or is based upon: (i) any misrepresentation by any Assignor or
      breach of any warranty by any Assignor in this Master Security Agreement or
      any
      Document or any agreement between any Assignor and the Agent and/or any other
      Creditor Party relating hereto or thereto; or (ii) any breach or default in
      performance by the Assignors of any covenant or undertaking to be performed
      by the Assignors hereunder or under any Document, or any other agreement entered
      into by any Assignor and the Agent and/or any other Creditor Party relating
      hereto or thereto or (iii) (a) the violation of any local, state or federal
      law,
      rule or regulation pertaining to environmental regulation, contamination or
      clean­up (collectively, “Environmental Laws”), including without
      limitation, the Comprehensive Environmental Response, Compensation and Liability
      Act of 1980 (42 U.S.C. §9601 et seq. and 40 CFR §302.1 et seq.), the Resource
      Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et seq.), the Federal
      Water Pollution Control Act (33 U.S.C. §1251 et seq., and 40 CFR §116.1 et
      seq.), the Hazardous Materials Transportation Act (49 U.S.C. §1801 et seq.) and
      the regulations promulgated pursuant to said laws, all as amended and relating
      to or affecting any Assignor and/or any Assignor’s properties, whether or not
      caused by or within the control of any Creditor Party and/or (b) the presence,
      release or threat of release of any hazardous, toxic or harmful substances,
      wastes, materials, pollutants or contaminants (including, without limitation,
      asbestos, polychlorinated biphenyls, petroleum products, flammable explosives,
      radioactive materials, infectious substances or raw materials which include
      hazardous constituents) or any other substances or raw materials which are
      included under or regulated by Environmental Laws on, in, under or affecting
      all
      or any portion of any property of any Assignor or any surrounding areas,
      regardless of whether or not caused by or within the control of any Creditor
      Party;

     

    (k)           it
      will promptly, and in any event within five (5) business days after the same
      is
      acquired by it, notify the Agent of any commercial tort claim acquired by it
      and
      unless otherwise consented to in writing by the Agent, it shall enter into
      a
      supplement to this Master Security Agreement granting to the Agent a security
      interest for the ratable benefit of the Creditor Parties in such commercial
      tort
      claim; and

     

    (l)           at
      the request of the Agent, each Assignor will (x) irrevocably direct all of
      its
      present and future Account Debtors (as defined below) and other persons or
      entities obligated to make payments constituting Collateral to make such
      payments directly to the lockbox maintained by such Assignor (the
“Lockbox”) with North Fork Bank or such other financial institution
      accepted by the Agent in writing as may be selected by the Company (the
“Lockbox Bank”) (each such direction pursuant to this clause (x), a
“Direction Notice”) and (y) provide the Agent with copies of each
      Direction Notice, each of which shall be agreed to and acknowledged by the
      respective Account Debtor.  The Lockbox Bank shall agree to deposit
      the proceeds of such payments immediately upon receipt thereof in such deposit
      account acceptable to the Agent in writing (the “Lockbox Deposit
      Account”).  At the request of the Agent, each Assignor shall and
      shall cause the Lockbox Bank to enter into all such documentation acceptable
      to
      the Agent pursuant to which, among other things, the Lockbox Bank agrees to,
      following notification by the Agent (which notification the Agent shall only
      give following the occurrence and during the continuance of an Event of Default
      and only after Laurus has released, in writing, its interest in the applicable
      Lockbox and/or Lockbox Deposit Account), comply only with the instructions
      or
      other directions of the Agent concerning such Lockbox and the related Lockbox
      Deposit Account.  All of each Assignor’s invoices, account statements
      and other written or oral communications directing, instructing, demanding
      or
      requesting payment of any Account (as hereinafter defined) of any such Assignor
      or any other amount constituting
      Collateral shall conspicuously direct that all payments be made to the Lockbox
      or such other address as the Agent may direct in writing.  If,
      notwithstanding the instructions to Account Debtors, any Assignor receives
      any
      payments, such Assignor shall immediately remit such payments to the Lockbox
      Deposit Account in their original form with all necessary
      endorsements.  Until so remitted, the Assignors shall hold all such
      payments in trust for and as the property of the Agent (subject only to any
      interest of Laurus therein) and shall not commingle such payments with any
      of
      its other funds or property.  For the purpose of this Master Security
      Agreement, (x) “Accounts” shall mean all “accounts”, as such term is
      defined in the UCC, now owned or hereafter acquired by any Assignor and (y)
      “Account Debtor” shall mean any person or entity who is or may be
      obligated with respect to, or on account of, an Account.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    5.           The
      occurrence of any of the following events or conditions shall constitute an
      “Event of Default” under this Master Security Agreement:

     

    
      	
               

            	
              (a)

            	
              any
                covenant or any other term or condition of this Master Security Agreement
                is breached in any material respect and such breach, to the extent
                subject
                to cure, shall continue for a period of fifteen (15) days after the
                occurrence thereof;

            

    

     

    
      	
               

            	
              (b)

            	
              any
                representation or warranty, or statement made or furnished to the
                Agent or
                any other Creditor Party under this Master Security Agreement by
                any
                Assignor or on any Assignor’s behalf should prove to any time be false or
                misleading in any material respect on the date as of which made or
                deemed
                made;

            

    

     

    
      	
               

            	
              (c)

            	
              the
                loss, theft, substantial damage, destruction, sale or encumbrance
                to or of
                any of the Collateral or the making of any levy, seizure or attachment
                thereof or thereon except to the
                extent:

            

    

     

    
      	
               

            	
              (i)

            	
              such
                loss is covered by insurance proceeds which are used to replace the
                item
                or repay the Agent; or

            

    

     

    
      	
               

            	
              (ii)

            	
              said
                levy, seizure or attachment does not secure indebtedness in excess
                of
                $100,000 in the aggregate for all Assignors and such levy, seizure
                or
                attachment has been removed or otherwise released within ten (10)
                days of
                the creation or the assertion
                thereof;

            

    

     

    
      	
               

            	
              (d)

            	
              any
                Assignor shall become insolvent, cease operations, dissolve, terminate
                its
                business existence, make an assignment for the benefit of creditors,
                suffer the appointment of a receiver, trustee, liquidator or custodian
                of
                all or any part of any Assignor’s
                property;

            

    

     

    
      	
               

            	
              (e)

            	
              any
                proceedings under any bankruptcy or insolvency law shall be commenced
                by
                or against any Assignor and if commenced against any Assignor shall
                not be
                dismissed within thirty (30) days;

            

    

     

    
      	
               

            	
              (f)

            	
              any
                Assignor shall repudiate, purport to revoke or fail to perform any
                of its
                obligations under any Note (after passage of applicable cure period,
                if
                any) or any document, instrument or agreement executed in connection
                therewith; or

            

    

     

    
      	
               

            	
              (g)

            	
              an
                Event of Default (or similar term) shall have occurred under and
                as
                defined in any Document or any document, instrument or agreement
                entered
                into in connection therewith.

            

    

     

    6.           Upon
      the occurrence of any Event of Default and at any time thereafter, the Agent
      may
      declare all Obligations immediately due and payable and the Agent shall have
      the
      remedies of a secured party provided in the UCC, this Master Security Agreement
      and other applicable law.  Upon the occurrence of any Event of Default
      and at any time thereafter, the Agent will have the right to receive one hundred
      percent (100%) of all accounts receivable of each Company, whether attributable
      to oil, gas, other hydrocarbon production or otherwise, take possession of
      the
      Collateral and to maintain such possession on any Assignor’s premises or to
      remove the Collateral or any part thereof to such other premises as the Agent
      may desire.  Upon the Agent’s request, each Assignor shall assemble or
      cause the Collateral to be assembled and make it available to the Agent at
      a
      place designated by the Agent.  If any notification of intended
      disposition of any Collateral is required by law, such notification, if mailed,
      shall be deemed properly and reasonably given if mailed at least ten (10) days
      before such disposition, postage prepaid, addressed to the applicable Assignor
      either at such Assignor’s address shown herein or at any address appearing on
      the Agent’s records for such Assignor.  Any proceeds of any
      disposition of any of the Collateral shall be applied by the Agent to the
      payment of all expenses in connection with the sale of the Collateral, including
      reasonable attorneys’ fees and other legal expenses and disbursements and the
      reasonable expenses of retaking, holding, preparing for sale, selling, and
      the
      like, and any balance of such proceeds may be applied by the Agent toward the
      payment of the Obligations in such order of application as the Agent may elect,
      and each Assignor shall be liable for any deficiency.  For the
      avoidance of doubt, following the occurrence and during the continuance of
      an
      Event of Default, the Agent shall have the immediate right to withdraw any
      and
      all monies contained in the Restricted Account and/or any other deposit accounts
      in the name of any Assignor and controlled by the Agent and apply same to the
      repayment of the Obligations (in such order of application as the Agent may
      elect).  The parties hereto each hereby agree that the exercise by any
      party hereto of any right granted to it or the exercise by any party hereto
      of
      any remedy available to it (including, without limitation, the issuance of
      a
      notice of redemption, a borrowing request and/or a notice of default), in each
      case, hereunder or under any of the other Documents shall not constitute
      confidential information and no party shall have any duty to the other party
      to
      maintain such information as confidential.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.           If
      any Assignor defaults in the performance or fulfillment of any of the terms,
      conditions, promises, covenants, provisions or warranties on such Assignor’s
      part to be performed or fulfilled under or pursuant to this Master Security
      Agreement, the Agent may, at its option without waiving its right to enforce
      this Master Security Agreement according to its terms, immediately or at any
      time thereafter and without notice to any Assignor, perform or fulfill the
      same
      or cause the performance or fulfillment of the same for each Assignor’s joint
      and several account and at each Assignor’s joint and several cost and expense,
      and the cost and expense
      thereof, including reasonable attorneys’ fees and other legal expenses, shall be
      added to the Obligations and shall be payable on demand with interest thereon
      at
      the highest rate permitted by law, or, at the Agent’s option, debited by the
      Agent from the Restricted Account or any other deposit accounts in the name
      of
      any Assignor and controlled by the Agent.

     

    8.           Each
      Assignor hereby appoints the Agent, or any other Person whom the Agent may
      designate as such Assignor’s attorney, with power to:  (a)(i) execute
      any security related documentation on such Assignor’s behalf and to supply any
      omitted information and correct patent errors in any documents executed by
      such
      Assignor or on such Assignor’s behalf; (ii) to file financing statements against
      such Assignor covering the Collateral (and, in connection with the filing of
      any
      such financing statements, describe the Collateral as “all assets and all
      personal property, whether now owned and/or hereafter acquired” (or any
      substantially similar variation thereof)); (iii) sign such Assignor’s name on
      any invoice or bill of lading relating to any accounts receivable, drafts
      against account debtors, schedules and assignments of accounts receivable,
      notices of assignment, financing statements and other public records,
      verifications of accounts receivable and notices to or from account debtors;
      and
      (iv) to do all other things the Agent deems necessary to carry out the terms
      of
      Section 1 of this Master Security Agreement and (b) upon the occurrence and
      during the continuance of an Event of Default; (v) endorse such Assignor’s name
      on any checks, notes, acceptances, money orders, drafts or other forms of
      payment or security that may come into the Agent’s possession;
      (vi)  sign such Assignor’s name on any invoice or bill of lading
      relating to any accounts receivable, drafts against account debtors, schedules
      and assignments of accounts receivable, notices of assignment, financing
      statements and other public records, verifications of accounts receivable and
      notices to or from account debtors; (vii) verify the validity, amount or any
      other matter relating to any accounts receivable by mail, telephone, telegraph
      or otherwise with account debtors; (viii) do all other things necessary to
      carry
      out this Agreement, any other Document and all other related documents; and
      (ix)
      notify the post office authorities to change the address for delivery of such
      Assignor’s mail to an address designated by the Agent, and to receive, open and
      dispose of all mail addressed to such Assignor.  Each Assignor hereby
      ratifies and approves all acts of the attorney and neither the Agent nor the
      attorney will be liable for any acts of commission or omission, nor for any
      error of judgment or mistake of fact or law other than gross negligence or
      willful misconduct (as determined by a court of competent jurisdiction in a
      final and non-appealable decision).  This power being coupled with an
      interest, is irrevocable so long as any Obligation remains unpaid.

     

    9.           No
      delay or failure on the Agent’s part in exercising any right, remedy, option,
      privilege or election hereunder shall operate as a waiver of such or of any
      other right, remedy, option, privilege or election, and no waiver whatever
      shall
      be valid unless in writing, signed by the Agent and then only to the extent
      therein set forth, and no waiver by the Agent of any default shall operate
      as a
      waiver of any other default or of the same default on a future
      occasion.  The Creditor Parties’ books and records containing entries
      with respect to the Obligations shall be admissible in evidence in any action
      or
      proceeding, shall be binding upon each Assignor for the purpose of establishing
      the items therein set forth and shall constitute prima facie proof
      thereof.  The Agent shall have the right to enforce any one or more of
      the remedies available to the Agent, successively, alternately or
      concurrently.  Each Assignor agrees to join with the Agent in
      executing such documents or other instruments to the extent required by the
      UCC
      in form satisfactory to the Agent and in executing such other documents or
      instruments as may be required
      or deemed necessary by the Agent for purposes of affecting or continuing the
      Agent’s security interest in the Collateral.

     

    10.           The
      Assignors shall jointly and severally pay all of the Agent’s and each other
      Creditor Party’s out-of-pocket costs and expenses, including reasonable fees and
      disbursements of in-house or outside counsel and appraisers, in connection
      with
      the preparation, execution and delivery of the Documents, and in connection
      with
      the prosecution or defense of any action, contest, dispute, suit or proceeding
      concerning any matter in any way arising out of, related to or connected with
      any Document.  The Assignors shall also jointly and severally pay all
      of the Agent’s and each other Creditor Party’s reasonable fees, charges,
      out-of-pocket costs and expenses, including reasonable fees and disbursements
      of
      in-house and outside counsel and appraisers, in connection with (a) the
      preparation, execution and delivery of any waiver, any amendment thereto or
      consent proposed or executed in connection with the transactions contemplated
      by
      the Documents, (b) the Agent’s obtaining performance of the Obligations under
      the Documents, including, but not limited to the enforcement or defense of
      the
      Agent’s security interests, assignments of rights and liens hereunder as valid
      perfected security interests, (c) any attempt to inspect, verify, protect,
      collect, sell, liquidate or otherwise dispose of any Collateral, (d) any
      appraisals or re appraisals of any property (real or personal) pledged to the
      Agent by any Assignor as Collateral for, or any other Person as security for,
      the Obligations hereunder and (e) any consultations in connection with any
      of
      the foregoing.  The Assignors shall also jointly and severally pay the
      Agent’s and each other Creditor Party’s customary bank charges for all bank
      services (including wire transfers) performed or caused to be performed by
      the
      Agent or any other Creditor Party for any Assignor at any Assignor’s request or
      in connection with any Assignor’s loan account (if any) with the Agent or any
      other Creditor Party.  All such costs and expenses together with all
      filing, recording and search fees, taxes and interest payable by the Assignors
      to the Agent shall be payable on demand and shall be secured by the
      Collateral.  If any tax by any nation or government, any state or
      other political subdivision thereof, and any agency, department or other entity
      exercising executive, legislative, judicial, regulatory or administrative
      functions of or pertaining to government (each, a “Governmental
      Authority”) is or may be imposed on or as a result of any transaction
      between any Assignor, on the one hand, and the Agent and/or any other Creditor
      Party on the other hand, which the Agent and/or any other Creditor Party is
      or
      may be required to withhold or pay (including, without limitation, as a result
      of a breach by any Assignor of Section 6.12 of the Securities Purchase
      Agreement), the Assignors hereby jointly and severally indemnify and hold the
      Agent and each other Creditor Party harmless in respect of such taxes, and
      the
      Assignors will repay to the Agent or such other Creditor Party the amount of
      any
      such taxes which shall be charged to the Assignors’ account; and until the
      Assignors shall furnish the Agent and such other Creditor Party with indemnity
      therefor (or supply the Agent and such other Creditor Party with evidence
      satisfactory to it that due provision for the payment thereof has been made),
      the Creditor Parties may hold without interest any balance standing to each
      Assignor’s credit (if any) and the Agent shall retain its liens in any and all
      Collateral.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.           THIS
      MASTER SECURITY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
      ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
      AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAWS.  All of the rights,
      remedies, options, privileges and elections given to the Agent hereunder shall
      inure to the benefit of the Agent’s successors and assigns.  The term
“Agent” as herein used shall include the Agent, any parent of the
      Agent’s, any of the Agent’s subsidiaries and any co-subsidiaries of the Agent’s
      parent, whether now existing or hereafter created or acquired, and all of the
      terms, conditions, promises, covenants, provisions and warranties of this Master
      Security Agreement shall inure to the benefit of each of the foregoing, and
      shall bind the representatives, successors and assigns of each
      Assignor.

     

    12.           Each
      Assignor hereby consents and agrees that the state and federal courts located
      in
      the County of New York, State of New York shall have exclusive jurisdiction
      to
      hear and determine any claims or disputes between Assignor, on the one hand,
      and
      the Agent and/or any other Creditor Party, on the other hand, pertaining to
      this
      Master Security Agreement or to any matter arising out of or related to this
      Master Security Agreement, provided, that the Agent, each other Creditor Party
      and each Assignor acknowledges that any appeals from those courts may have
      to be
      heard by a court located outside of the County of New York, State of New York,
      and further provided, that nothing in this Master Security Agreement shall
      be
      deemed or operate to preclude the Agent from bringing suit or taking other
      legal
      action in any other jurisdiction to collect, the Obligations, to realize on
      the
      Collateral or any other security for the Obligations, or to enforce a judgment
      or other court order in favor of the Agent.  Each Assignor expressly
      submits and consents in advance to such jurisdiction in any action or suit
      commenced in any such court, and each Assignor hereby waives any objection
      which
      it may have based upon lack of personal jurisdiction, improper venue or
forumnonconveniens.  Each Assignor hereby waives
      personal service of the summons, complaint and other process issues in any
      such
      action or suit and agrees that service of such summons, complaint and other
      process may be made by registered or certified mail addressed to such assignor
      at the address set forth on the signature lines hereto and that service so
      made
      shall be deemed completed upon the earlier of such Assignor’s actual receipt
      thereof or three (3) days after deposit in the U.S. mails, proper postage
      prepaid.

     

    The
      parties desire that their disputes be resolved by a judge applying such
      applicable laws.  Therefore, to achieve the best combination of the
      benefits of the judicial system and of arbitration, the parties hereto waive
      all
      rights to trial by jury in any action, suite, or proceeding brought to resolve
      any dispute, whether arising in contract, tort, or otherwise between the Agent
      and/or any other Creditor Party, and/or any Assignor arising out of, connected
      with, related or incidental to the relationship established between them in
      connection with this Master Security Agreement or the transactions related
      hereto.

     

    13.           This
      Master Security Agreement may be executed in any number of counterparts, each
      of
      which shall be an original, but all of which shall constitute one
      instrument.  Any signature delivered by a party by facsimile or
      electronic transmission shall be deemed to be an original signature
      hereto.

     

    14.           It
      is understood and agreed that any person or entity that desires to become an
      Assignor hereunder, or is required to execute a counterpart of this Master
      Security Agreement after the date hereof pursuant to the requirements of any
      Document, shall become an Assignor hereunder by (x) executing a Joinder
      Agreement in form and substance satisfactory to the Agent, (y)
      delivering supplements to such exhibits and annexes to such Documents as the
      Agent shall reasonably request and (z) taking all actions as specified in this
      Master Security Agreement as would have been taken by such Assignor had it
      been
      an original party to this Master Security Agreement, in each case with all
      documents required above to be delivered to the Agent and with all documents
      and
      actions required above to be taken to the reasonable satisfaction of the
      Agent.

     

    15.           All
      notices from the Agent to any Assignor shall be sufficiently given if mailed
      or
      delivered to such Assignor’s address set forth below.

     

    16.           This
      Master Security Agreement may be executed by facsimile signatures and in any
      number of counterparts, each of which shall be an original, but all of which
      together shall constitute one agreement.

     

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    Very
      truly yours,

    

    GULF
      COAST OIL CORPORATION

    

    By:  /s/
      Edward R.
      DeStefano                                                              

    Name:
      Edward R. DeStefano

    Title:
      President

    Address:5851
      San Felipe, Suite 775

    Houston,
      TX 77057

     

    NEW
      CENTURY ENERGY CORP.

    

    By:   /s/
      Edward R.
      DeStefano                                                             

    Name:
      Edward R. DeStefano

    Title:
      President

    Address:5851
      San Felipe, Suite 775

    Houston,
      TX 77057

     

    CENTURY
      RESOURCES, INC.

    

    By:  /s/
      Edward R.
      DeStefano                                                              

    Name:
      Edward R. DeStefano

    Title:
      President

    Address:5851
      San Felipe, Suite 775

    Houston,
      TX 77057

     

    AGREED
      AND ACKNOWLEDGED:

     

    LV
      ADMINISTRATIVE SERVICES INC.,

    as
      Agent

     

    By:
      /s/ Eugene Grin

    Name:
      Eugene Grin

    Title:
      President

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      A

    Commercial
      Tort Claims

     

    None.

    Schedule
      B

     

    Subject
      Interests

     

     

     

    
 

    [Confidential
      Information Removed]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      C

     

    

    
      	
              Entity

            	
              Jurisdiction
                of Formation

            	
              Organization
                Identification Number

            
	 	 	 
	
              Gulf
                Coast Oil Corporation

            	
              Delaware

            	
              4143411

            
	
              New
                Century Energy Corp.

            	
              Colorado

            	
              20031402340

            
	
              Century
                Resources, Inc.

            	
              Delaware

            	
              2029277ex10-6.htm

    Exhibit 10.6

     

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

     

    Right
      to
      Purchase Shares of

     

    Gulf
      Coast Oil Corporation

     

    (subject
      to adjustment as provided herein)

     

    AMENDED
      AND RESTATED

     

    COMMON
      STOCK PURCHASE WARRANT

    
      	
              No.
                _________________

            	
              Issue
                Date:  Effective as of April 28,
                2006

            

    

     

    GULF
      COAST OIL CORPORATION, a corporation organized under the laws of the State
      of
      Delaware, hereby certifies that, for value received, LAURUS MASTER FUND, LTD.,
      or assigns (the “Holder”), is entitled, subject to the terms set forth below, to
      purchase from the Company (as hereinafter defined) at any time or from time
      to
      time following payment in full of all obligations and liabilities owing by
      the
      Company to the Holder in connection with the transactions contemplated by the
      Securities Purchase Agreement dated as of April 28, 2006 by and between the
      Company and the Holder (as amended, modified and/or supplemented from time
      to
      time, the “Securities Purchase Agreement”) and the Related Agreements (as
      defined in the Securities Purchase Agreement) (the “Debt Repayment Date”), up to
      the Specified Number (as hereinafter defined) fully paid and nonassessable
      shares of Common Stock (as hereinafter defined), at the Exercise Price (as
      hereinafter defined).

     

    This
      Warrant amends and restates the warrant originally issued to the Holder pursuant
      to the Securities Purchase Agreement (the “Original Warrant”) for the purposes
      of clarifying certain of the exercise provisions of the Original Warrant and
      the
      percentage of the Company’s equity into which the Original Warrant was
      exercisable.  All references to the “Warrant” set forth in the
      Securities Purchase Agreement and in each Related Agreement (as defined in
      the
      Securities Purchase Agreement) shall hereafter by deemed to refer to this
      Warrant.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

     

    (a)  The
      term
“Common Stock” includes (i) the Company’s Common Stock, par value $.001 per
      share; and (ii) any other securities into which or for which any of the
      securities described in the preceding clause (i) may be converted or exchanged
      pursuant to a plan of recapitalization, reorganization, merger, sale of assets
      or otherwise.

     

    (b)  The
      term
“Company” shall include Gulf Coast Oil Corporation and any person or entity
      which shall succeed, or assume the obligations of, Gulf Coast Oil Corporation
      hereunder.

     

    (c)  The
      term
“Exercise Price” means a price of $.001 per share of Common Stock.

     

    (d)  The
      term
“Other Securities” refers to any securities of the Company or any other person
      (corporate or otherwise) which the holder of the Warrant at any time shall
      be
      entitled to receive, or shall have received, on the exercise of the Warrant,
      in
      lieu of or in addition to Common Stock, or which at any time shall be issuable
      or shall have been issued in exchange for or in replacement of Common Stock
      or
      Other Securities pursuant to Section 3 or
      otherwise.

     

    (e)  the
      term
“Record Date” means the first date on which the Company shall have received from
      the Holder (i) an Exercise Notice (as hereinafter defined), and (ii) payment
      of
      the Exercise Price for the number of shares of Common Stock reflected in the
      Exercise Notice.

     

    (f)  The
      term
“Specified Number” means, on any date on which the Company receives an Exercise
      Notice from the Holder, a number of shares of Common Stock computed using the
      following formula:

     

    (AxB)-C

     

    where
      (i)
“A” equals 0.49, (ii) “B” equals the number of shares of Common Stock
      outstanding on a Fully Diluted Basis (as hereinafter defined) on the date of
      exercise and (iii) “C” equals the number of shares of Common Stock previously
      issued to the Holder in connection with partial exercises of this
      Warrant.  As of the date of this Warrant, this Warrant is exercisable
      for 961 shares of Common Stock (the “Warrant Shares”).  As used in
      this Warrant, the term “Fully Diluted Basis” means all outstanding Common Stock
      plus all Common Stock issuable on conversion or exercise of securities
      convertible into or exercisable for Common Stock  (including the
      Common Stock  issuable upon exercise of this Warrant on such date),
      regardless whether any payment must be made pursuant to such conversion or
      exercise or whether any conversion or exercise price is above or below the
      market price of the Common Stock .

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.  Exercise
      of Warrant.

     

    1.1  Number
      of Shares Issuable upon Exercise.  From and after the Debt
      Repayment Date thereof, the Holder shall be entitled to receive, upon exercise
      of this Warrant in whole or in part, by delivery of an original or fax copy
      of
      an exercise notice in the form attached hereto as Exhibit A (the “Exercise
      Notice”) the Specified Number of shares of Common Stock of the Company, which
      Specified Number shall be calculated on each date that the Company receives
      an
      Exercise Notice.

     

    1.2  Company
      Acknowledgment.  The Company will, at the time of the exercise of
      this Warrant, upon the request of the Holder hereof, acknowledge in writing
      its
      continuing obligation to afford to such Holder any rights to which such Holder
      shall continue to be entitled after such exercise in accordance with the
      provisions of this Warrant.  If the Holder shall fail to make any such
      request, such failure shall not affect the continuing obligation of the Company
      to afford to such Holder any such rights.

     

    1.3  Trustee
      for Warrant Holders.  In the event that a bank or trust company
      shall have been appointed as trustee for the Holder of this Warrant pursuant
      to
      Subsection 3.2, such bank or trust company shall have all the powers and duties
      of a warrant agent (as hereinafter described) and shall accept, in its own
      name
      for the account of the Company or such successor person as may be entitled
      thereto, all amounts otherwise payable to the Company or such successor, as
      the
      case may be, on exercise of this Warrant pursuant to this Section
      1.

     

    1.4  Ownership.  The
      Holder shall be deemed a shareholder of the Company and shall be entitled to
      all
      of the rights of a shareholder as of the Record Date, without any further action
      on the part of the Holder or the Company.

     

    2.  Procedure
      for Exercise.

     

    2.1  Delivery
      of Common Stock Certificates, Etc., on Exercise.  The Company
      agrees that the Common Stock purchased upon exercise of this Warrant shall
      be
      deemed to be issued to the Holder as the record owner of such Common Stock
      as of
      the close of business on the Record Date.  As soon as practicable
      after each exercise of this Warrant and in any event within three (3) business
      days thereafter, the Company at its expense (including the payment by it of
      any
      applicable issue taxes) will cause to be issued in the name of and delivered
      to
      the Holder, or as such Holder (upon payment by such Holder of any applicable
      transfer taxes) may direct in compliance with applicable securities laws, a
      certificate or certificates for the number of duly and validly issued, fully
      paid and nonassessable shares of Common Stock (or Other Securities) to which
      such Holder shall be entitled on such exercise, together with any other stock
      or
      other securities and property (including cash, where applicable) to which such
      Holder is entitled upon such exercise pursuant to Section 1 or
      otherwise.  Unless this Warrant has been fully exercised for the
      Specified Number, a new Warrant representing the number of Warrant Shares with
      respect to which this Warrant shall not then have been exercised shall also
      be
      issued to the Holder as soon as practicable thereafter (but not later than
      three
      (3) business days) after such exercise.  Such warrant shall be
      identical to this Warrant except for the number of Warrant Shares (which will
      be
      adjusted to reflect any exercise of this Warrant).  In the event that
      this Warrant is fully exercised for the Specified Number on any given date,
      no
      new warrant will be issued to the Holder and its rights under this Warrant
      will
      be terminated.

     

    2.2  Exercise.  Payment
      may be made in cash by wire transfer of immediately available funds or by
      certified or official bank check payable to the order of the Company equal
      to
      the applicable aggregate Exercise Price for the number of Warrant Shares
      specified in such Exercise Notice (as such exercise number shall be adjusted
      to
      reflect any adjustment in the total number of shares of Common Stock issuable
      to
      the Holder in accordance with the terms of this Warrant).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.  Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

     

    3.1  Reorganization,
      Consolidation, Merger, Etc.  If there occurs any capital
      reorganization or any reclassification of the Common Stock of the Company,
      the
      consolidation or merger of the Company with or into another person (other than
      a
      merger or consolidation of the Company in which the Company is the continuing
      entity and which does not result in any reorganization or reclassification
      of
      its outstanding Common Stock) or the sale or conveyance of all or substantially
      all of the assets of the Company to another person, then, as a condition
      precedent to any such reorganization, reclassification, consolidation, merger,
      sale or conveyance, the Holder will be entitled to receive upon surrender of
      the
      Warrant to the Company (x) to the extent there are cash proceeds resulting
      from
      the consummation of such reorganization, reclassification, consolidation,
      merger, sale or conveyance, in exchange for such Warrant, cash in an amount
      equal to the cash proceeds that would have been payable to the Holder had the
      Holder exercised such Warrant immediately prior to the consummation of such
      reorganization, reclassification, consolidation, merger, sale or conveyance,
      less the aggregate Exercise Price payable upon exercise of the Warrant, and
      (y)
      to the extent that the Holder would be entitled to receive Common Stock (or
      Other Securities) (in addition to or in lieu of cash in connection with any
      such
      reorganization, reclassification, consolidation, merger, sale or conveyance),
      the same kind and amounts of securities or other assets, or both, that are
      issuable or distributable to the holders of outstanding Common Stock (or Other
      Securities) of the Company with respect to their Common Stock (or Other
      Securities) upon such reorganization, reclassification, consolidation, merger,
      sale or conveyance, as would have been deliverable to the Holder had the Holder
      exercised such Warrant immediately prior to the consummation of such
      reorganization, reclassification, consolidation, merger, sale or conveyance
      less
      an amount of such securities having a value equal to the aggregate Exercise
      Price payable upon exercise of the Warrant.

     

    3.2  Dissolution.  In
      the event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and Other Securities
      and property (including cash, where applicable) receivable by the Holder of
      this
      Warrant pursuant to Section 3.1, or, if the Holder shall so instruct the
      Company, to a bank or trust company specified by the Holder and having its
      principal office in New York, NY as trustee for the Holder  (the
“Trustee”).

     

    3.3  Continuation
      of Terms.  Upon any reorganization, consolidation, merger or
      transfer (and any dissolution following any transfer) referred to in this
      Section 3, this Warrant shall continue in full force and effect and the terms
      hereof shall be applicable to the Common Stock and other securities and property
      receivable on the exercise of this Warrant after the consummation of such
      reorganization, consolidation or merger or the effective date of dissolution
      following any such transfer, as the case may be, and shall be binding upon
      the
      issuer of any such stock or other securities, including, in the case of any
      such
      transfer, the person acquiring all or substantially all of the properties or
      assets of the Company, whether or not such person shall have expressly assumed
      the terms of this Warrant.  In the event this Warrant does not
      continue in full force and effect after the consummation of the transactions
      described in this Section 3, then the Company’s securities and property
      (including cash, where applicable) receivable by the Holder of this Warrant
      will
      be delivered to the Holder or the Trustee as contemplated by Section
      3.2.

     

    4.  Certificate
      as to Adjustments.  In each case of any adjustment or readjustment
      in the Common Stock (or Other Securities) issuable on the exercise of this
      Warrant, the Company at its expense will promptly cause its Chief Financial
      Officer or other appropriate designee to compute such adjustment or readjustment
      in accordance with the terms of this Warrant and prepare a certificate setting
      forth such adjustment or readjustment and showing in detail the facts upon
      which
      such adjustment or readjustment is based, including a statement of (a) the
      consideration received or receivable by the Company for any additional shares
      of
      Common Stock (or Other Securities) issued or sold or deemed to have been issued
      or sold, (b) the number of shares of Common Stock (or Other Securities)
      outstanding or deemed to be outstanding, and (c) the number of shares of Common
      Stock to be received upon exercise of this Warrant, in effect immediately prior
      to such adjustment or readjustment and as adjusted or readjusted as provided
      in
      this Warrant.  The Company will forthwith mail a copy of each such
      certificate to the Holder of this Warrant and any Warrant agent of the Company
      (appointed pursuant to Section 9
      hereof).

     

    5.  Reservation
      of Stock, Etc., Issuable on Exercise of Warrant.  The Company will
      at all times reserve and keep available, solely for issuance and delivery on
      the
      exercise of this Warrant, shares of Common Stock (or Other Securities) from
      time
      to time issuable on the exercise of this Warrant.

     

    6.  Assignment;
      Exchange of Warrant.  Subject to compliance with applicable
      securities laws, this Warrant, and the rights evidenced hereby, may be
      transferred by any registered holder hereof (a “Transferor”) in whole or in
      part.  On the surrender for exchange of this Warrant, with the
      Transferor’s endorsement in the form of Exhibit B attached hereto (the
“Transferor Endorsement Form”) and together with evidence reasonably
      satisfactory to the Company demonstrating compliance with applicable securities
      laws, which shall include, without limitation, the provision of a legal opinion
      from the Transferor’s counsel (at the Company’s expense) that such transfer is
      exempt from the registration or equivalent requirements of applicable securities
      laws, the Company at its expense (but with payment by the Transferor of any
      applicable transfer taxes) will issue and deliver to or on the order of the
      Transferor thereof a new Warrant of like tenor, in the name of the Transferor
      and/or the transferee(s) specified in such Transferor Endorsement Form (each
      a
“Transferee”), calling in the aggregate on the face or faces thereof for the
      number of shares of Common Stock called for on the face or faces of the Warrant
      so surrendered by the Transferor.  Notwithstanding the foregoing, in
      the event that the transfer of the Warrant to the Transferee, absent the
      execution of the Proxy (as defined below), would result in any interest paid
      to
      a person that is not a “United States Person” (as such term is defined in
      Section 7701(a)(30) of the Code (as hereinafter defined)) on the Obligations (as
      such term is defined in the Master Security Agreement dated April 28, 2006
      among
      the Company, certain subsidiaries of the Company and Laurus Master Fund, Ltd.,
      as amended, restated, modified and/or supplemented from time to time (the
“Security Agreement”)) to not qualify as portfolio interest within the
      meaning of Section 871(h)(2) or 881(c)(2) of the Internal Revenue Code of 1986,
      as amended (the “Code”), as applicable, by reason of Section 871(h)(3) or
      881(c)(3)(B) of the Code, as applicable, taking into account the constructive
      ownership rules under Section 871(h)(3)(C) of the Code, neither this Warrant
      nor
      any portion hereof may be transferred unless and until the Transferee executes
      a
      proxy in the form attached hereto as Exhibit C (the “Proxy”) and delivers the
      Proxy to the Company.  In such case, the Company will have no
      obligation to transfer the Warrant until the Proxy has been executed and
      delivered.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.  Replacement
      of Warrant.  On receipt of evidence reasonably satisfactory to the
      Company of the loss, theft, destruction or mutilation of this Warrant and,
      in
      the case of any such loss, theft or destruction of this Warrant, on delivery
      of
      an indemnity agreement or security reasonably satisfactory in form and amount
      to
      the Company or, in the case of any such mutilation, on surrender and
      cancellation of this Warrant, the Company at its expense will execute and
      deliver, in lieu thereof, a new Warrant of like tenor.

     

    8.  Maximum
      Exercise.  Notwithstanding anything herein to the contrary, in no
      event shall the Holder be entitled to exercise any portion of this Warrant
      in
      excess of that portion of this Warrant upon exercise of which the sum of (1)
      the
      number of shares of Common Stock beneficially owned by the Holder and its
      Affiliates (other than shares of Common Stock which may be deemed beneficially
      owned through the ownership of the unexercised portion of the Warrant or the
      unexercised or unconverted portion of any other security of the Holder subject
      to a limitation on conversion analogous to the limitations contained herein)
      and
      (2) the number of shares of Common Stock issuable upon the exercise of the
      portion of this Warrant with respect to which the determination of this proviso
      is being made, would result in beneficial ownership by the Holder and its
      Affiliates of any amount greater than 9.99% of the then outstanding shares
      of
      Common Stock (whether or not, at the time of such exercise, the Holder and
      its
      Affiliates beneficially own more than 9.99% of the then outstanding shares
      of
      Common Stock).  As used herein, the term “Affiliate” means any person
      or entity that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a person or entity,
      as such terms are used in and construed under Rule 144 under the Securities
      Act.   For purposes of the second preceding sentence, beneficial
      ownership shall be determined in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended, and Regulations 13D-G thereunder, except
      as
      otherwise provided in clause (1) of such sentence.  For any reason at
      any time, upon written or oral request of the Holder, the Company shall within
      one (1) business day confirm orally and in writing to the Holder the number
      of
      shares of Common Stock outstanding as of any given date.  The
      limitations set forth herein (x) may be waived by the Holder (i) if the Company
      is required to file reports with the Securities and Exchange Commission, upon
      provision of no less than sixty-one (61) days prior written notice to the
      Company, or (ii) if the Company is not required to file reports with the
      Securities and Exchange Commission, upon provision of not less than two (2)
      days
      prior written notice to the Company, and (y) shall automatically become null
      and
      void following notice to the Company upon the occurrence and during the
      continuance of an Event of Default (as defined in the Security
      Agreement).

     

    9.  Warrant
      Agent.  The Company may, by written notice to the each Holder of
      the Warrant, appoint an agent for the purpose of issuing Common Stock (or Other
      Securities) on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section
6, and replacing
      this Warrant pursuant to Section 7, or any of the foregoing, and thereafter any
      such
      issuance, exchange or replacement, as the case may be, shall be made at such
      office by such agent.

     

    10.  Transfer
      on the Company’s Books.  Until this Warrant is transferred on the
      books of the Company, the Company may treat the registered holder hereof as
      the
      absolute owner hereof for all purposes, notwithstanding any notice to the
      contrary.

     

    11.  Rights
      of Shareholders.  No Holder shall be entitled to vote or receive
      dividends or be deemed the holder of the shares of Common Stock or any other
      securities of the Company which may at any time be issuable upon exercise of
      this Warrant for any purpose (the “Warrant Shares”), nor shall anything
      contained herein be construed to confer upon the Holder, as such, any of the
      rights of a shareholder of the Company or any right to vote for the election
      of
      directors or upon any matter submitted to shareholders at any meeting thereof,
      or to give or withhold consent to any corporate action (whether upon the
      recapitalization, issuance of shares, reclassification of shares, change of
      nominal value, consolidation, merger, conveyance or otherwise) or to receive
      notice of meetings, or to receive dividends or subscription rights or otherwise,
      in each case, until the Record Date.

     

    12.  Notices,
      Etc.  All notices and other communications from the Company to the
      Holder shall be mailed by first class registered or certified mail, postage
      prepaid, at such address as may have been furnished to the Company in writing
      by
      such Holder or, until any such Holder furnishes to the Company an address,
      then
      to, and at the address of, the last Holder  who has so furnished an
      address to the Company.

     

    13.  Representations
      and Warranties.  The representations and warranties made by the
      Company in the Securities Purchase Agreement and each other Related Agreement
      (as defined in the Securities Purchase Agreement) with respect to (a) the
      Original Warrant, (b) the shares of stock issuable upon exercise of the Original
      Warrant (whether described in such manner in the Securities Purchase Agreement
      or as the “Warrant Shares”) and (c) the Securities (as defined in the Securities
      Purchase Agreement and to the extent such term, as used therein, refers to
      the
      items described in the immediately preceding clauses (a) or (b)) shall be true
      and correct on and as of the effective date of that certain Securities Purchase
      Agreement dated as of November [__], 2007, by and between the Company, the
      purchasers from time to time party thereto and LV Administrative Services,
      Inc.
      (as amended, restated, modified and/or supplemented from time to time), with
      the
      same effect as if such representations and warranties had been made on and
      as of
      such date, except that any such representation or warranty which was expressly
      made only as of a specified date need be true only as of such date.

     

    14.  Miscellaneous.  This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought.  THIS
      WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAWS.  ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY
      THIS WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE
      FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT THE
      HOLDER MAY CHOOSE TO WAIVE THIS PROVISION AND BRING AN ACTION OUTSIDE THE STATE
      OF NEW YORK.  The individuals executing this Warrant on behalf of the
      Company agree to submit to the jurisdiction of such courts and waive trial
      by
      jury.  The prevailing party shall be entitled to recover from the
      other party its reasonable attorneys’ fees and costs.  In the event
      that any provision of this Warrant is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law.  Any such
      provision which may prove invalid or unenforceable under any law shall not
      affect the validity or enforceability of any other provision of this
      Warrant.  The headings in this Warrant are for purposes of reference
      only, and shall not limit or otherwise affect any of the terms
      hereof.  The invalidity or unenforceability of any provision hereof
      shall in no way affect the validity or enforceability of any other provision
      hereof.  The Company acknowledges that legal counsel participated in
      the preparation of this Warrant and, therefore, stipulates that the rule of
      construction that ambiguities are to be resolved against the drafting party
      shall not be applied in the interpretation of this Warrant to favor any party
      against the other party.

     

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

     

    SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, the Company has executed this Amended and Restated Common
      Stock
      Purchase Warrant on November 20, 2007.

    

    
      	 	
              GULF
                COAST OIL CORPORATION

            
	 	 
	
              WITNESS:
                /s/ Michael Pearson

            	 
	 	
              By:  /s/
                Edward R.
                DeStefano                                                             

            
	 	
              Name: Edward
                R.
                DeStefano                                                              

            
	 	
              Title:  President                                                             

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    FORM
      OF
      SUBSCRIPTION

     

    (To
      Be
      Signed Only On Exercise Of Warrant)

     

    
      	
              TO:

            	
              Gulf
                Coast Oil Corporation

            

    

     

    
      	
               

            	
              5851
                San Felipe, Suite 775

            

    

     

    
      	
               

            	
              Houston,
                Texas 77057

            

    

     

    
      	
              Attention:

            	
              Chief
                Financial Officer

            

    

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____), hereby irrevocably elects to purchase shares of Common Stock covered
      by such warrant.

     

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      of
      Common Stock at the price per share provided for in such Warrant, which is
      $___________ in lawful money of the United States.

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to ______________________________________________ whose
      address is
      ___________________________________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to a registration statement under the Securities Act of 1933, as
      amended (the “Securities Act”) or pursuant to an exemption from registration
      under the Securities Act.

    
      	
              Dated:                                                          

            	 
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 
	 	
              Address:                                                                  

            
	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    FORM
      OF
      TRANSFEROR ENDORSEMENT

     

    (To
      Be
      Signed Only On Transfer Of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Gulf Coast Oil Corporation into which the within Warrant relates
      specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of Gulf Coast
      Oil
      Corporation with full power of substitution in the premises.

     

    
      	
              Transferees

            	
              Address

            	
              Percentage
                Transferred

            	
              Number

              Transferred

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    
      	
              Dated:                                                          

            	 
	 	
              (Signature
                must conform to name of Holder as specified on the face of the
                Warrant)

            
	 	 
	 	
              Address:                                                                  

            
	 	 
	 	 
	 	
              Address:

            
	 	 
	 	
              SIGNED
                IN THE PRESENCE OF:

            
	 	 
	 	
               

              (Name)

            
	
              ACCEPTED
                AND AGREED:

            	 
	
              [TRANSFEREE]

            	 
	
               

              (Name)

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