Document:

<PAGE>

                                                                   EXHIBIT 10.15

                               PURCHASE AGREEMENT

                                  by and among

           MARK A. STEPHENS, JOHN MILLER, THE HUNTER REVOCABLE TRUST,

          LINDA G. FERSZT, SCOTT ARCHER and THE ARCHER REVOCABLE TRUST

                                       and

                           CONTANGO OIL & GAS COMPANY

                           Dated as of January 9, 2002

<PAGE>

                               PURCHASE AGREEMENT

          This PURCHASE AGREEMENT dated as of January 9, 2002 (this
"Agreement"), is entered into by and among Mark A. Stephens ("Stephens"),
husband of Renee Stephens, John Miller ("Miller"), husband of Amy Miller, The
Hunter Revocable Trust ("Hunter TR"), Linda G. Ferszt ("Ferszt"), a femme sole,
Scott Archer ("Archer"), husband of Linda D. Archer, and The Archer Revocable
Trust ("Archer TR") (collectively, "Seller") and Contango Oil & Gas Company, a
Delaware corporation ("Buyer") (collectively, the "Parties").

                                    RECITALS

          WHEREAS, Seller desires to sell to Buyer, and Buyer desires to
purchase from Seller, all of Seller's overriding royalty interest in and to the
oil and gas leases and wells identified in Exhibits "A" and "B" attached hereto
and made a part hereof, all on the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as
follows:

                                   ARTICLE I

                         PURCHASE AND SALE OF INTERESTS

     Section 1.1 Interests. On the terms and subject to the conditions set forth
in this Agreement, at the Closings (as defined herein in Section 6.1) Seller
agrees to sell, transfer and assign to Buyer, and Buyer shall purchase and
receive, all of Seller's overriding royalty interest in and to the production
from or allocable to the following leases and wells:

     (a) Leases. The oil and gas leases described in Exhibit "A" and the lands
covered thereby ("First Leases," "Second Leases" and "Third Leases,"
collectively sometimes hereinafter referred to as the "Leases");

     (b) Wells. The oil and gas wells described in Exhibit "B" ("First Wells,"
"Second Wells" and "Third Wells," collectively sometimes hereinafter referred to
as the "Wells"); and

     (c) Contracts. The agreements described in Exhibit "C" (the "Contracts"),
to the extent such agreements relate to the Leases and Wells and affect the
interests conveyed herein.

     First Leases and First Wells together with the related Contracts
(collectively, the "First Tranche"), Second Leases and Second Wells together
with the related Contracts (collectively, the "Second Tranche") and Third Leases
and Third Wells together with the related Contracts (collectively, the "Third
Tranche"); and Seller's overriding royalty interest in and to the production
from or allocable to the First Tranche, Second Tranche and Third Tranche
collectively hereinafter referred to as the "Interests." Production shall be
deemed to include oil,

                                       2

<PAGE>

gas, distillate, condensate, casinghead gas, flash gas and other liquid and
vaporous hydrocarbons produced, saved and sold.

     Section 1.2 Excluded Interests. The Interests do not include (the "Excluded
Interests"), and Seller shall not sell, transfer or assign to Buyer, and Buyer
shall not acquire, any production from or attributable to Seller's overriding
royalty interest in the Wells and Leases, or lands pooled or unitized therewith,
prior to (i) the First Effective Time (as defined in Section 6.1 herein) as to
the First Tranche of Interests, (ii) the Second Effective Time (as defined in
Section 6.1 herein) as to the Second Tranche of Interests and (iii) the Third
Effective Time (as defined in Section 6.1 herein) as to the Third Tranche of
Interests.

     Section 1.3 Purchase Price. As consideration for the sale of the Interests,
the aggregate purchase price to be paid by Buyer to Seller shall be Two Million
Six Hundred Twenty-Seven Thousand One Hundred Sixty-Four Dollars ($2,627,164)
(the "Purchase Price"), to be allocated among and payable to the following named
Seller parties in the amounts set forth opposite their respective names:

                       Stephens:        $606,003
                       Miller:          $606,003
                       Hunter TR:       $606,003
                       Ferszt:          $404,576
                       Archer:          $150,262
                       Archer TR:       $254,314

subject to adjustment as set forth in Sections 1.4 and 1.5 herein, allocated and
payable as follows in each case by wire transfer of immediately available funds
to a bank account designated by each Seller:

     (a) One Million Eight Hundred Twenty-Eight Thousand Two Hundred Sixty-Six
Dollars ($1,828,266) of the Purchase Price shall be payable by Buyer to Seller,
as hereinafter provided, in cash on the First Closing (as defined in Section 6.1
herein) for the purchase of the First Tranche of Interests effective as of the
First Effective Time (as defined in Section 6.1 herein) and shall be allocated
among and payable to the following named Seller parties in the amounts set forth
opposite their respective names:

                       Stephens:        $426,074
                       Miller:          $426,074
                       Hunter TR:       $426,074
                       Ferszt:          $275,022
                       Archer:          $150,262
                       Archer TR:       $124,760

     (b) Five Hundred Eight Thousand Nine Hundred Twenty-Five Dollars ($508,925)
of the Purchase Price shall be payable by Buyer to Seller, as hereinafter
provided, in cash on the Second Closing (as defined in Section 6.1 herein) for
the purchase of the Second Tranche of Interests effective as of the Second
Effective Time (as defined in Section 6.1 herein)

                                       3

<PAGE>

and shall be allocated among and payable to the following named Seller parties
in the amounts set forth opposite their respective names:

                       Stephens:        $114,622
                       Miller:          $114,622
                       Hunter TR:       $114,622
                       Ferszt:          $ 82,530
                       Archer TR:       $ 82,529

     (c) Two Hundred Eighty-Nine Thousand Nine Hundred Seventy Dollars
($289,970) of the Purchase Price shall be payable by Buyer to Seller, as
hereinafter provided, in cash on the Third Closing (as defined in Section 6.1
herein) for the purchase of the Third Tranche of Interests effective as of the
Third Effective Time (as defined in Section 6.1 herein) and shall be allocated
among and payable to the following named Seller parties in the amounts set forth
opposite their respective names:

                       Stephens:        $ 65,307
                       Miller:          $ 65,307
                       Hunter TR:       $ 65,307
                       Ferszt:          $ 47,024
                       Archer TR:       $ 47,025

     Section 1.4 Adjustments to Purchase Price. Notice of any adjustments to the
portion of the Purchase Price otherwise payable at any Closing (as defined in
Section 6.1 herein) shall be delivered, as between the Parties, no later than
two (2) business days prior to such Closing in order to be considered at such
Closing. Any notice of adjustment not timely provided, together with any other
adjustment will be made in the final adjustment as set forth in Section 6.5
herein. The Purchase Price shall be adjusted as follows with respect to the
First Tranche, Second Tranche and/or Third Tranche of Interests, if and as
applicable:

     (a) The Purchase Price shall be increased by the following:

          (1) an amount equal to paid ad valorem, property, production, excise,
     severance and similar taxes and assessments based upon or measured by the
     ownership of the Interests that are attributable to periods of time from
     and after the First Effective Time, Second Effective Time and/or Third
     Effective Time of the First Tranche, Second Tranche and/or Third Tranche of
     Interests, respectively, if and as applicable, which amounts shall, to the
     extent not actually assessed, be computed based on such taxes and
     assessments for the preceding tax year (such amount to be prorated for the
     period of Seller's and Buyer's ownership before and from and after the
     First Effective Time, Second Effective Time and/or Third Effective Time, as
     applicable); and

          (2) any adjustment(s) to the Purchase Price pursuant to Section
     1.5 herein.

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

                                       4

<PAGE>

     (1) the amount of any proceeds received by Seller attributable to the
Interests for the periods of time from and after the First Effective Time,
Second Effective Time and/or Third Effective Time of the First Tranche, Second
Tranche and/or Third Tranche of Interests, respectively, if and as applicable;

     (2) an amount equal to unpaid ad valorem, property, production, excise,
severance and similar taxes and assessments based upon or measured by the
ownership of the Interests that are attributable to periods of time prior to the
First Effective Time, Second Effective Time and/or Third Effective Time of the
First Tranche, Second Tranche and/or Third Tranche of Interests, respectively,
if and as applicable, which amounts shall, to the extent not actually assessed,
be computed based on such taxes and assessments for the preceding tax year (such
amount to be prorated for the period of Seller's and Buyer's ownership before
and after the First Effective Time, Second Effective Time and/or Third Effective
Time, as applicable); and

     (3) any adjustment(s) to the Purchase Price pursuant to Section 1.5 herein.

     Section 1.5 Changes to the Purchase Price Allocable to the Second Tranche
or the Third Tranche of Interests. The portion of the Purchase Price payable for
the Second Tranche and/or the Third Tranche of Interests shall be increased or
decreased, as applicable, at or prior to the Second Closing and/or the Third
Closing, as the case may be, because of one or more of the following events:

          (a) A change in oil and/or gas commodity prices, as determined by
     reference to the NYMEX as of January 3, 2002 as compared to the NYMEX as of
     the Second Effective Date and Third Effective Date, respectively;

          (b) A change in reserves with respect to any of the Second Wells or
     the Third Wells as determined by Von Gonten & Co; provided, that (i) the
     change of events which causes the increase or decrease is unrelated to the
     price of oil or gas, and (ii) such increase or decrease in value is
     determined by comparing the reserve report produced by Von Gonten attached
     as Exhibit "D" (the "Reserve Report") to a revised reserve report produced
     by Von Gonten, and (iii) such decrease in value is not attributable to
     production from the Second Wells or Third Wells from January 1, 2002 to the
     Second Effective Time or Third Effective Time, respectively.

                                   ARTICLE II

                    REPRESENTATIONS AND WARRANTIES OF SELLER

          Each Seller hereby represents, warrants and covenants to Buyer that:

     Section 2.1 Authorization. Each Seller has the requisite power and
authority, to execute, deliver and perform its obligations under this Agreement.
The execution, delivery and performance by each Seller of this Agreement has
been duly authorized by all necessary action of each Seller, and no other act or
proceeding on the part of each Seller is necessary to authorize the execution,
delivery or performance by each Seller of this Agreement.

                                       5

<PAGE>

     Section 2.2 Interests; Defensible Title. Each Seller owns Defensible Title
(as such term is defined below) to all of the Interests. Each Seller has the
right to convey, and (a) after the First Closing, each Seller will have
conveyed, and Buyer will be vested with, Defensible Title to the First Tranche
of Interests; and (b) after the Second Closing, each Seller will have conveyed,
and Buyer will be vested with, Defensible Title to the Second Tranche of
Interests; and (c) after the Third Closing, each Seller will have conveyed, and
Buyer will be vested with, Defensible Title to the Third Tranche of Interests.
"Defensible Title" shall mean, with respect to each Seller, such title, free and
clear of all liens and encumbrances and defects, other than the Contracts, as
will entitle Buyer to receive the overriding royalty interest percentage of the
hydrocarbons produced, saved and sold from the Wells shown on Exhibit "B".

     Section. 2.3 Consents and Approvals. No consent, approval, order or
authorization of, or registration, declaration or filing with, any Person is
required to be made or obtained by any Seller in connection with the
authorization, execution, delivery and performance by any Seller of this
Agreement and the transactions contemplated hereby.

     Section 2.4 No Violation. The execution, delivery and performance by each
Seller of this Agreement and the consummation of the transactions contemplated
herein, will not: (a) result in the breach of any of the terms or conditions of,
or constitute a default under, or in any manner release any party thereto from
any obligation under, any mortgage, note, bond, indenture, contract, agreement,
license or other instrument or obligation of any kind or nature by which any
Seller may be bound or affected; (b) violate any law, order, writ, injunction,
rule, regulation, statute or decree of any court, administrative agency, or
Governmental Authority (as defined in Section 7.2 hereof); (c) result in the
creation or imposition of any liens, mortgages, charges, security interests,
pledges or other encumbrances or adverse claims ("Liens") upon any of the
Interests; or (d) violate any provision of the organizational documents, if any,
of any Seller.

     Section 2.5 Contracts; Leases. Schedule 2.5(a) identifies all of those
Contracts and Leases that may not be assigned to Buyer without the consent,
approval, notification or waiver of any Person. Schedule 2.5(b) identifies those
Contracts and Leases that are subject to a preferential right to purchase
obligation. Each Seller has obtained such consents, approvals and waivers.

     Section 2.6 Disclosure. No representation, warranty or statement made by
each Seller in this Agreement or any of the exhibits or schedules hereto
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary to make the statements contained
herein or therein, in light of the circumstances under which they were made, not
misleading.

                                  ARTICLE III

                     REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer hereby represents, warrants and covenants to Seller that:

     Section 3.1 Corporate Organization. Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware.

                                       6

<PAGE>

     Section 3.2 Authorization. The execution and delivery of this Agreement,
the performance by Buyer of its obligations hereunder and the consummation by
Buyer of the transactions contemplated hereby have been duly authorized by all
necessary organizational action and no other act or proceeding on the part of
Buyer is necessary. Buyer has full power and authority to enter into, execute
and deliver this Agreement and to perform its obligations hereunder.

     Section 3.3 No Violation. The execution, delivery and performance by Buyer
of this Agreement and the consummation of the transactions contemplated herein
do not and will not: (a) result in the breach of any of the terms or conditions
of, or constitute a default under, or in any manner release any party thereto
from any obligation under, any mortgage, note, bond, indenture, contract,
agreement, license or other instrument or obligation of any kind or nature by
which Buyer may be bound or affected; (b) violate any law, order, writ,
injunction, rule, regulation, statute or decree of any court, administrative
agency, or Governmental Authority; or (c) violate any provision of the
Certificate of Incorporation or by-laws of Buyer.

     Section 3.4 Consents and Approvals. No consent, approval or authorization
of, or declaration, filing or registration with, any Person is required to be
made or obtained by Buyer in connection with the execution and delivery of this
Agreement by Buyer, the performance by Buyer of its obligations hereunder, and
the consummation by it of the transactions contemplated hereby.

     Section 3.5 No Brokers or Finders. Buyer has not retained any broker or
finder, made any statement or representation to any Person which would entitle
such Person to, or agreed to pay, any broker's, finder's or similar fees or
commissions in connection with transactions contemplated by this Agreement.

     Section 3.6 Knowledge of the Business. Buyer is directly and actively
engaged in the business of exploration for and production of oil and gas. Buyer
is a sophisticated investor in oil and gas properties and has knowledge and
expertise in financial and business matters relating to the evaluation and
purchase of producing oil and gas properties. Buyer is acquiring the Interests
to be conveyed herein for investment purposes and not for distribution in
violation of any applicable securities laws.

                                   ARTICLE IV

                                 INDEMNIFICATION

     Section 4.1 Indemnification by Seller. If the Closings occur, each Seller
hereby agrees to indemnify, defend and save Buyer and its officers, directors,
employees, agents and Affiliates (all or each, a "Buyer Indemnified Party")
harmless from and against (a) any and all liabilities (whether contingent, fixed
or unfixed, liquidated or unliquidated, or otherwise), obligations,
deficiencies, demands, claims, suits, actions, or causes of action, assessments,
losses, costs, expenses, interest, fines, penalties and damages (including
reasonable fees and expenses of attorneys, accountants and other experts)
(individually and collectively, the "Losses") suffered,

                                       7

<PAGE>

sustained or incurred by any Buyer Indemnified Party relating, resulting from,
arising out of or otherwise by virtue of any misrepresentation or breach of the
representations or warranties of Seller contained in this Agreement or in any
exhibit or schedule hereto; or (b) the failure of Seller to perform any of its
covenants or obligations contained in this Agreement.

     Section 4.2 Indemnification by Buyer. If the Closings occur, Buyer agrees
to indemnify, defend and save Seller and their respective heirs, agents,
trustees and Affiliates (all or each, a "Seller Indemnified Party") forever
harmless from and against any and all Losses sustained or incurred by any Seller
Indemnified Party relating to, resulting from, arising out of or otherwise by
virtue of: (a) any misrepresentation in or breach of the representations and
warranties of Buyer contained in this Agreement or in any schedule or exhibit
hereto; or (b) the failure of Buyer to perform any of its covenants or
obligations contained in this Agreement or in any exhibit or schedule hereto.

                                   ARTICLE V

                               CLOSING CONDITIONS

     Section 5.1 Buyer's Conditions to Closings. The obligation of Buyer to
proceed with the Closings contemplated hereby is subject to the satisfaction on
or prior to the Closings of all of the following conditions:

          (a) Representations and Warranties. The representations and warranties
     of each Seller contained in Article II of this Agreement shall be true and
     correct in all material respects with respect to the Interests (covered by
     such closing).

          (b) Board Approval. Buyer shall have received authorization to acquire
     the Interests (covered by such closing) from its Board of Directors.

          (c) Due Diligence. Buyer shall have reviewed and approved all
     documents and information, including title and production records, for the
     Interests (covered by such closing) relating thereto.

                                   ARTICLE VI

                                    CLOSINGS

     Section 6.1 Closings. The transactions that are the subject of this
Agreement shall be consummated at three closings (the "Closings").

          (a) The first closing shall be held at the offices of Seller in
     Magnolia, Texas as soon as possible but no later than January 10, 2002 (the
     "First Closing"). The ownership of the First Tranche of Interests shall be
     transferred from Seller to Buyer at the First Closing but effective as of
     7:00 a.m., Central Time, January 1, 2002 (the "First Effective Time").

                                       8

<PAGE>

          (b) The second closing shall be held at the offices of Seller in
     Magnolia, Texas on April 1, 2002 (the "Second Closing"). The ownership of
     the Second Tranche of Interests shall be transferred from Seller to Buyer
     at the Second Closing but effective as of 7:00 a.m., Central Time, April 1,
     2002 (the "Second Effective Time").

          (c) The third closing shall be held at the offices of Seller in
     Magnolia, Texas on July 1, 2002 (the "Third Closing"). The ownership of the
     Second Tranche of Interests shall be transferred from Seller to Buyer at
     the Third Closing effective as of 7:00 a.m., Central Time, July 1, 2002
     (the "Third Effective Time").

     Section 6.2 Deliveries by Seller.

     (a) At the First Closing, pursuant to this Agreement, Seller shall execute
and deliver to Buyer: (i) an Assignment of Overriding Royalty Interest (in the
form attached hereto as Schedule 6.2) transferring to Buyer the First Tranche of
Interests; and (ii) such other documents and instruments as Buyer may reasonably
require.

     (b) At the Second Closing, pursuant to this Agreement, Seller shall execute
and deliver to Buyer: (i) an Assignment of Overriding Royalty Interest
transferring to Buyer the Second Tranche of Interests; and (ii) such other
documents and instruments as Buyer may reasonably require.

     (c) At the Third Closing, pursuant to this Agreement, Seller shall execute
and deliver to Buyer: (i) an Assignment of Overriding Royalty Interest
transferring to Buyer the Third Tranche of Interests; and (ii) such other
documents and instruments as Buyer may reasonably require.

     All such other documents and instruments delivered to Buyer, as applicable,
shall be in form and substance reasonably satisfactory to Buyer.

     Section 6.3 Deliveries by Buyer.

     (a) At the First Closing, Buyer shall deliver to Seller: (i) wire transfers
of immediately available funds for the portion of the Purchase Price (as set
forth in Section 1.3 hereof) payable at the First Closing and (ii) such other
documents and instruments as Seller may reasonably require in order to
effectuate the transactions which are the subject of this Agreement.

     (b) At the Second Closing, Buyer shall deliver to Seller: (i) wire
transfers of immediately available funds for the portion of the Purchase Price
(as set forth in Section 1.3 hereof) payable at the Second Closing and (ii) such
other documents and instruments as Seller may reasonably require in order to
effectuate the transactions which are the subject of this Agreement.

     (c) At the Third Closing, Buyer shall deliver to Seller: (i) wire transfers
of immediately available funds for the portion of the Purchase Price (as set
forth in Section 1.3 hereof) payable at the Third Closing and (ii) such other
documents and instruments as Seller may reasonably require in order to
effectuate the transactions which are the subject of this Agreement.

                                       9

<PAGE>

     All documents and instruments delivered to Seller shall be in form and
substance reasonably satisfactory to Seller.

     Section 6.4 Further Assurances. From time to time after each of the
Closings, as applicable, and without further consideration, the Parties shall
execute such further documents and perform such further acts as may be necessary
to transfer and convey the Interests to Buyer, on the terms contained herein,
and to otherwise comply with the terms of this Agreement and consummate the
transactions contemplated hereby.

     Section 6.5 Post Closing Adjustments. Within 90 days after each Closing,
Seller and Buyer shall jointly prepare a final accounting statement for the net
revenues, if any, received by Seller for hydrocarbons produced from the
Interests from and after the First Effective Time (as to the First Tranche of
Interests), the Second Effective Time (as to the Second Tranche of Interests)
and the Third Effective Time (as to the Third Tranche of Interests). The Parties
shall have 30 days following completion of such accounting to agree as to its
accuracy. Following such agreement, Seller or Buyer, as the case may be, shall
promptly pay to the other such sum as may be found due. Nothing in this Section
6.5 is intended to limit any right of Seller or Buyer to assert a claim for
reimbursement after the final accounting with respect to each Closing.

     Section 6.6 Failure to Close. If any of the Closings do not occur on or
before their scheduled closing dates as set forth hereunder, either party may
terminate this Agreement by giving written notice to the other party.
Thereafter, neither party shall have any further obligations to the other
hereunder, other than any obligations and liabilities arising prior to such
termination and those obligations that by their terms survive the termination of
this Agreement.

                                   ARTICLE VII

                                  MISCELLANEOUS

     Section 7.1 Notices. All notices, reports, records or other communications
that are required or permitted to be given to the Parties under this Agreement
shall be sufficient in all respects if given in writing and delivered in person,
by telecopy, by overnight courier or by registered or certified mail, postage
prepaid, return receipt requested, to the receiving party at the following
address:

         If to Seller:   Linda G. Ferszt             Mark A. Stephens
                         1316 Vassar St.             26902 Nichols Sawmill Rd.
                         Houston, TX  77006          Magnolia, TX  77355
                         Telecopier: 713.524.8197    Telecopier: 281.356.2666
                         Phone: 713.521.9772         Phone: 281.356.6494

         If to Buyer:    Contango Oil & Gas Company
                         3700 Buffalo Speedway, Suite 960
                         Houston, TX  77098
                         Attention:  Kenneth R. Peak
                         Telecopier: 713.960.1065
                         Phone: 713.960.1901

                                       10

<PAGE>

or such other address as such party may have given to the other party by notice
pursuant to this Section 7.1. Notice shall be deemed given on (i) the date such
notice is personally delivered, (ii) three (3) days after the mailing if sent by
Certified or Registered Mail, (iii) one (1) day after the date of delivery to
the overnight courier if sent by overnight courier, or (iv) the next succeeding
day after transmission by facsimile.

     Section 7.2 General Definitions. For the purposes of this Agreement, the
following terms have the meaning set forth below:

          "Affiliate" with respect to any party, any Person directly or
     indirectly controlling, controlled by or under common control with such
     party, and any other officer, director or executive employee of such party
     and includes any past or present Affiliate of any such Person.

          "Governmental Authority" means any federal, state, provincial, local,
     governmental, judicial, public, quasi-public or administrative authority or
     agency.

          "Person" means any individual, sole proprietorship, partnership,
     limited liability company, joint venture, trust, unincorporated
     association, corporation, other entity or any Governmental Authority.

     Section 7.3 Entire Agreement. The Schedules and Exhibits attached to this
Agreement shall be deemed to be an integral part of this Agreement. This
Agreement, including the Schedules and Exhibits, set forth the entire
understanding of the Parties with respect to the subject matter hereof and may
be modified only by instruments signed by all of the Parties hereto.

     Section 7.4 Counterparts. This Agreement may be executed via facsimile in
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

     Section 7.5 Third Parties. Nothing in this Agreement, express or implied,
is intended to confer any right or remedy under or by reason of this Agreement
on any Person other than the Parties hereto and their respective heirs,
representatives, successors and assigns, nor is anything set forth herein
intended to affect or discharge the obligation or liability of any third persons
to any party to this Agreement, nor shall any provision give any third party any
right of subrogation or action over against any party to this Agreement.

     Section 7.6 Expenses. Each of the Parties shall pay all costs and expenses
incurred or to be incurred by it in negotiating and preparing this Agreement and
in closing and carrying out the transactions contemplated by hereunder,
including, without limitation, legal and accounting fees and expenses.

     Section 7.7 Waiver. No failure of any party to exercise any right or remedy
given such party under this Agreement or otherwise available to such party or to
insist upon strict compliance by any other party with its obligations hereunder,
and no custom or practice of the Parties in variance with the terms hereof,
shall constitute a waiver of any party's right to demand exact compliance with
the terms hereof, unless such waiver is set forth in writing and executed by
such party.

                                       11

<PAGE>

     Section 7.8 Survival. All representations, warranties, and rights to set
off of the Parties hereto contained in or arising out of this Agreement or
otherwise in connection herewith shall survive the Closings hereunder and shall
continue in effect until the expiration of all applicable statute of limitations
(including any extensions of said statute). Unless a specified period is set
forth in this Agreement (in which event such specified period will control), all
covenants contained in this Agreement will survive the Closings and remain in
effect indefinitely.

     Section 7.9 Governing Law; Jurisdiction. This Agreement shall be construed
and governed in accordance with the laws of the State of Texas without regard to
the principles of conflicting laws. Any action to enforce, or which arises out
of or relates in any way to, any of the provisions of this Agreement shall be
brought and prosecuted solely in the Texas state courts or the Federal district
courts located in Harris County, Texas.

     Section 7.10 Assignment. No party may assign its rights or delegate its
obligations hereunder without the consent of the other party. Subject to the
foregoing, this Agreement shall inure to the benefit of and be binding upon the
Parties hereto and their respective heirs, successors and assigns.

     Section 7.11 Confidentiality. Buyer and Seller acknowledge that all
information furnished or disclosed pursuant hereto must remain confidential.
Buyer and Seller must mutually approve all press releases. Buyer may disclose
such information only to its subsidiaries or Affiliates, agents, advisors or
representatives who have need to know such information and who have agreed in
writing, prior to being given access to such information, to be bound by the
terms of this Section 7.11.

     Section 7.12 Severability. If any term or other provision of this Agreement
is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other terms and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any adverse manner to
any party. Upon any binding determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Parties shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
Parties as closely as possible and in an acceptable manner, to the end that the
transaction hereby may be contemplated to the extent possible.

     Section 7.13 Headings. The subject headings of paragraphs and subparagraphs
of this Agreement are included for purposes of convenience only and shall not
affect the construction or interpretation of any of its provisions.

     Section 7.14 Construction. Where specific language is used to clarify by
example a general statement contained herein, such specific language shall not
be deemed to modify, limit or restrict in any manner the construction of the
general statement to which it relates. The language used in this Agreement shall
be deemed to be the language chosen by the Parties to express their mutual
intent, and no rule of strict construction shall be applied against any party.

                                       12

<PAGE>

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
first above written.

                               SELLER:

                               ------------------------------------------------
                                              MARK A. STEPHENS

                               ------------------------------------------------
                                                JOHN MILLER

                               THE HUNTER REVOCABLE TRUST

                               By:
                                  ---------------------------------------------
                                           Gerhart E. Hunter, Trustee

                               ------------------------------------------------
                                               LINDA G. FERSZT

                               ------------------------------------------------
                                                SCOTT ARCHER

                               THE ARCHER REVOCABLE TRUST

                               By:
                                  ---------------------------------------------
                                         Scott L. Archer, Trustee

                               BUYER:

                               CONTANGO OIL & GAS COMPANY,
                               a Delaware corporation

                               By:
                                  ---------------------------------------------
                                                 Kenneth R. Peak
                                      President and Chief Executive Officer

                                       13Stock Purchase Agreement

NAPRO BIOTHERAPEUTICS, INC.

SECURITIES PURCHASE AGREEMENT

FEBRUARY 13, 2002

 

 

NAPRO BIOTHERAPEUTICS, INC.

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (the "Agreement") is
entered into as of this 13th day of February, 2002, by and among NAPRO
BIOTHERAPEUTICS, INC., a Delaware corporation (the "Company"),
and each of those persons and entities, severally and not jointly, whose names
are set forth on the Schedule of Purchasers attached hereto as Exhibit A
(which persons and entities are hereinafter collectively referred to as "Purchasers"
and each individually as a "Purchaser").

RECITALS

WHEREAS, the Company and the Purchasers are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by Rule 506 under Regulation D as promulgated by the United States Securities
and Exchange Commission (the "Commission") under Section 4(2)
of the Securities Act of 1933, as amended (the "Securities Act");

WHEREAS, subject to the terms and conditions set forth in this Agreement,
the Company desires to issue and sell to the Purchasers, and the Purchasers
desire to acquire from the Company, (i) an aggregate of up to eight hundred
eighty-eight thousand eight hundred eighty-nine (888,889) shares of the Company's
Common Stock (the "Shares"), par value $.0075 per share, and
(ii) an aggregate of up to $8,000,000 principal amount of the Company's 4%
Convertible Subordinated Debentures (which debentures are hereinafter
collectively referred to as "Debentures" and each individually
as a "Debenture"), substantially in the form of Exhibit B
attached hereto; and

WHEREAS, contemporaneous with the execution and delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement substantially in the form of Exhibit C attached hereto (the
"Registration Rights Agreement") pursuant to which the Company
has agreed to provide certain registration rights under the Securities Act and
the rules and regulations promulgated thereunder, and applicable state
securities laws.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises hereinafter set forth, the parties hereto agree as follows:

  	AGREEMENT TO SELL AND PURCHASE

	Authorization of Shares and Notes. The Company has authorized the
    sale and issuance to the Purchasers of the Shares and the Debentures.
	Sale and Purchase. Subject to the terms and conditions hereof, at
    the Closing (as hereinafter defined), the Company hereby agrees to issue and
    sell to each Purchaser, severally and not jointly, and each Purchaser agrees
    to purchase from the Company, severally and not jointly, (i) the number of
    Shares set forth opposite such Purchaser's name on Exhibit A under
    the heading "Number of Shares" at a purchase price of $9.00 per
    share; and (ii) a Debenture in the principal amount (the "Loan
    Amount") set forth opposite such Purchaser's name on Exhibit A
    under the heading "Principal Amount of Debenture."

  
  	CLOSING, DELIVERY AND PAYMENT

	Closing. The closing of the sale and purchase of the Shares and the
    Debentures under this Agreement (the "Closing") shall take
    place at the offices of Cooley Godward LLP, 380 Interlocken Crescent, Suite
    900, Broomfield, CO 80021, or by transmission by facsimile and/or overnight
    courier, immediately following the execution hereof or at such other time or
    place as the Company and the Purchasers may mutually agree (such date is
    hereinafter referred to as the "Closing Date").
	Delivery. At the Closing, subject to the terms and conditions
    hereof, (i) the Company will deliver to each Purchaser a certificate or
    certificates representing the number of Shares to be purchased at the
    Closing by such Purchaser, against payment of the purchase price therefor by
    delivery of immediately available funds to an account or accounts designated
    in writing by the Company; and (ii) the Company will deliver to each
    Purchaser a Debenture or Debentures in favor of such Purchaser payable in
    the principal amount of such Purchaser's Loan Amount, against delivery by
    such Purchaser of immediately available funds to an account or accounts
    designated in writing by the Company in an amount equal to such Purchaser's
    Loan Amount.

  
  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY

For purposes of this Agreement, "SEC Documents" means,
  with respect to any date or time referred to in this Agreement, all reports,
  registration statements, prospectuses and definitive proxy statements filed by
  the Company (together with any amendments required to be made with respect
  thereto) with the Commission subsequent to December 31, 2000, and prior to the
  date hereof, including all exhibits and schedules thereto and any documents
  incorporated therein by reference. In addition, "Rules and Regulations"
  means the rules and regulations adopted by the Commission under the Securities
  Act or the Securities Exchange Act of 1934, as amended (the "Exchange
  Act"), as applicable. All references in this Agreement to financial
  statements and schedules and other information which is "contained,"
  "included," "stated," "described" or
  "disclosed" in the SEC Documents (or other references of like
  import) shall be deemed to mean and include all such financial statements and
  schedules and other information which are incorporated in the SEC Documents.

  Except as otherwise described or disclosed in (i) the SEC Documents or (ii)
  a Schedule of Exceptions delivered by the Company to the Purchasers, the
  Company (except where the context requires otherwise, for the purposes of this
  Section 3, the "Company" shall mean the Company as well as its
  wholly-owned subsidiaries) hereby represents and warrants to each Purchaser as
  follows:

  	Organization, Good Standing and Qualification. The Company is a
      corporation duly organized, validly existing and in good standing under
      the laws of the State of Delaware, with all requisite corporate power and
      authority to own, lease, operate and occupy its properties and assets and
      to carry on its business as currently conducted. The Company is duly
      qualified to do business as a foreign corporation and is in good standing
      in each jurisdiction in which its ownership or leasing of any properties
      or the character of its operations requires such qualification, except
      where the failure to be so qualified would not have a material adverse
      effect on the financial condition, results of operations or business of
      the Company, taken as a whole (a "Material Adverse Effect").
	Capitalization.

	The authorized capital stock of the Company, immediately prior to the
        Closing, will consist of (i) 45,000,000 shares of Common Stock, par
        value $.0075 per share, 28,741,392 shares of which were issued and
        outstanding as of February 12, 2002, (ii) 1,000,000 shares of Nonvoting
        Common Stock, par value $.0075 per share, none of which are issued and
        outstanding, and (iii) 2,000,000 shares of Preferred Stock, par value
        $.001 per share, 190,000 shares of which are designated Series B Junior
        Participating Preferred Stock, none of which are issued and outstanding,
        and 5,000 shares of which are designated Series C Senior Convertible
        Preferred Stock, none of which are issued and outstanding.
	All issued and outstanding shares of the Company's Common Stock (i)
        have been duly authorized and validly issued, (ii) are fully paid and
        nonassessable, and (iii) were issued in compliance with all applicable
        state and federal laws concerning the issuance of securities.
	Except with respect to (i) the Company's Rights Agreement dated as
        of November 8, 1996, as amended September 25, 2001, (ii) the Company's
        1993 Stock Option Plan (the "1993 Plan"), (iii) the
        Company's 1994 Long-Term Incentive Plan, as amended June 21, 2001 (the
        "1994 Plan"), (iv) the Company's 1998 Stock Incentive
        Plan (the "1998 Plan"), (v) options to purchase 16,750
        shares of Common Stock granted outside the 1993 Plan, the 1994 Plan and
        the 1998 Plan, (vi) warrants to purchase 124,334 shares of Common Stock,
        or (vii) as may be granted pursuant to this Agreement, there are no
        outstanding options, warrants, rights (including conversion or
        preemptive rights and rights of first refusal), instruments, proxy or
        stockholder agreements, or agreements of any kind for the purchase or
        acquisition from the Company of or the sale by the Company of any of its
        securities. No preemptive right, co-sale right, registration right,
        right of first refusal or other similar right exists with respect to the
        issuance and sale of the Shares or the Debentures.

    	Authorization; Binding Obligations.

	The Company has all requisite corporate power and authority to (i)
        execute, deliver and consummate the transactions contemplated by this
        Agreement, the Debentures and the Registration Rights Agreement
        (collectively, the "Transaction Documents"), (ii)
        issue, sell and deliver the Shares, the Debentures, the shares of Common
        Stock issuable upon conversion of the Debentures (the "Conversion
        Shares") and the shares of Common Stock issuable in payment of
        any interest on the Debentures (the "Interest Shares"
        and, together with the Conversion Shares, the "Debenture Shares"),
        and (iii) otherwise perform its obligations under this Agreement and
        each of the Transaction Documents.
	All corporate action on the part of the Company, its officers,
        directors and stockholders necessary for (i) the authorization,
        execution and delivery of this Agreement and each of the Transaction
        Documents by the Company, (ii) the performance of the Company's
        obligations under this Agreement and each of the Transaction Documents
        at the Closing, (iii) the authorization, sale, issuance and delivery of
        the Shares and the Debentures pursuant to this Agreement, and (iv) the
        authorization, issuance and delivery of the Debenture Shares pursuant to
        the Debentures, has been taken or will be taken prior to the Closing,
        or, in respect of the authorization, issuance and delivery of the
        Interest Shares, prior to the issuance of such Interest Shares.
	This Agreement and each of the Transaction Documents, when executed
        and delivered by the Company, will be valid and binding obligations of
        the Company enforceable against the Company in accordance with their
        terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium, liquidation or
        similar laws relating to, or affecting generally the enforcement of,
        creditors' rights and remedies or by other equitable principles of
        general application, and except as the enforceability of the
        indemnification and contribution provisions of the Registration Rights
        Agreement may be limited by applicable laws or public policy relating
        thereto.

    	Valid Issuance. When issued by the Company in compliance with the
      provisions of this Agreement, the Shares will be validly issued, fully
      paid and nonassessable and will be free of any liens or encumbrances,
      other than liens and encumbrances created by the Purchasers. The
      Conversion Shares (i) are and will at all times hereafter continue to be
      duly authorized and reserved for issuance, and (ii) when issued in
      compliance with the provisions of the Debentures, will be validly issued,
      fully paid and nonassessable, and will be free of any liens or
      encumbrances, other than liens and encumbrances created by the Purchasers.
      The Interest Shares, when issued in compliance with the provisions of the
      Debentures and subject to the authorization of the issuance and delivery
      of such Interest Shares by the Company, will be validly issued, fully paid
      and nonassessable, and will be free of any liens or encumbrances, other
      than liens or encumbrances created by the Purchasers.
	SEC Documents; Financial Statements. As of their respective
      filing dates, the SEC Documents complied in all material respects with the
      requirements of the Securities Act, the Exchange Act and the Rules and
      Regulations. As of their filing date, none of the SEC Documents contained
      any untrue statement of a material fact or omitted to state any material
      fact required to be stated therein or necessary in order to make the
      statements therein, in light of the circumstances under which they were
      made, not misleading, except to the extent corrected by a document
      subsequently filed with the Commission. The SEC Documents constitute all
      reports, registration statements, proxy statements and other filings
      required to be made by the Company pursuant to the Securities Act and the
      Exchange Act subsequent to December 31, 2000. All material contracts and
      other documents of the Company required to be filed as exhibits to the SEC
      Documents have been filed as required. The financial statements of the
      Company, together with the related notes thereto, included in the SEC
      Documents comply as to form in all material respects with the Rules and
      Regulations, have been prepared in conformity with generally accepted
      accounting principles consistently applied (except as may be indicated in
      the notes thereto) and fairly present in all material respects the Company's
      financial position at the dates thereof and the Company's results of
      operations, changes in stockholders' equity and cash flows for the periods
      then ended (subject, in the case of unaudited statements, to normal audit
      adjustments which will not be material in amount or significance).
	No Material Adverse Change. Since December 31, 2000, there has
      been no material adverse change or development involving a prospective
      material adverse change in the condition, financial or otherwise, results
      of operations or business or assets of the Company taken as a whole,
      whether or not arising in the ordinary course of business. Since December
      31, 2000, (i) there have been no transactions entered into by the Company,
      other than those in the ordinary course of business consistent with past
      practices, which are material with respect to the Company, (ii) there has
      been no dividend or distribution of any kind declared, paid or made by the
      Company on any class of its capital stock, or (iii) there has been no loss
      or damage (whether or not insured) to the physical property of the Company
      which has had a Material Adverse Effect.
	Liabilities. The Company does not have any liability or
      obligation (whether accrued, absolute, contingent, matured, unmatured or
      other) which if known would be required to be reflected in the Company's
      financial statements in accordance with generally accepted accounting
      principles, except for any such liability or obligation which (i) has been
      reflected in the Company's balance sheet at September 30, 2001 or (ii)
      has arisen in the ordinary course of business since September 30, 2001,
      consistent with past practices.
	Properties.
      The Company has good and marketable title to its properties, free and
      clear of all material security interests, mortgages, pledges, liens,
      charges, encumbrances and claims of record. The properties of the Company
      are, in the aggregate, in good repair (reasonable wear and tear excepted),
      and suitable for their respective uses. To the Company's knowledge, any
      real property held under lease by the Company is held under valid,
      subsisting and enforceable leases with such exceptions as are not material
      and do not interfere with the conduct of the business of the Company. The
      Company owns or leases all such properties as are necessary to its
      business or operations as now conducted.
	Intellectual Property.

	The Company has ownership or license or legal right to use all
        patents, copyrights, trade secrets, trademarks, customer lists, designs,
        manufacturing or other processes, computer software, systems, data
        compilation, research results or other proprietary rights used in the
        business of the Company and material to the Company (collectively,
        "Intellectual Property") other than Intellectual
        Property generally available on commercial terms from other sources; provided
        that notwithstanding the foregoing, no representation or warranty is
        made herein regarding infringement of any intellectual property owned by
        any person other than the Company except as set forth in Section 3.9(d)
        hereof. All of such patents, trademarks and registered copyrights owned
        by the Company have been duly registered in, filed in or issued by the
        United States Patent and Trademark Office, the United States Register of
        Copyrights or the corresponding offices of other jurisdictions and have
        been maintained and renewed in accordance with all applicable provisions
        of law and administrative regulations in the United States and all such
        jurisdictions, except where the failure to do so would not reasonably be
        expected to have a Material Adverse Effect.
	All material licenses or other material agreements under which (i) the
        Company is granted rights in Intellectual Property, other than
        Intellectual Property generally available on commercial terms from other
        sources, and (ii) the Company has granted rights to others in
        Intellectual Property owned or licensed by the Company, are, to the
        knowledge of the Company, in full force and effect and, to the knowledge
        of the Company, it is not in material default under any such license or
        agreement.
	The Company believes it has taken all reasonable steps required in
        accordance with sound business practice and business judgment to
        establish and preserve its ownership of all material Intellectual
        Property.
	To the knowledge of the Company, the present business, activities and
        products of the Company do not infringe any intellectual property of any
        other person, except where such infringement would not have a Material
        Adverse Effect on the Company. Except as described in the Company's
        SEC Documents, no proceeding charging the Company with infringement of
        Intellectual Property owned by any third party has been filed. To the
        knowledge of the Company, the Company is not making unauthorized use of
        any confidential information or trade secrets of any third party. The
        Company is not aware that any of its employees is obligated under any
        contract or other agreement with any third party that would materially
        interfere with such employee's duties to the Company or that would
        materially restrict the Company from conducting its business as
        currently conducted.
	To the knowledge of the Company, patent numbers 5733888, 5972992,
        5977164, 6140359 and 6306894 or related patents (collectively, the
        "Patents") are valid and enforceable.

    
    	No Conflicts. The execution, delivery and performance of this
    Agreement and each of the Transaction Documents by the Company and the
    consummation by the Company of the transactions contemplated hereby and
    thereby, including the issuance, sale and delivery of the Shares, the
    Debentures, the Conversion Shares and the Interest Shares (subject to the
    authorization of the issuance and delivery of such Interest Shares by the
    Company), does not and will not conflict with or result in any breach or
    violation of any of the terms or provisions of, or constitute a default
    (with or without the giving of notice or the passage of time or otherwise)
    under, or result in the creation or imposition of any lien, charge, claim,
    encumbrance, pledge, security interest, defect or other restriction or
    equity of any kind whatsoever upon any property or assets of the Company
    pursuant to the terms of, (i) the Certificate of Incorporation, Bylaws or
    other organizational documents of the Company, (ii) any license, contract,
    indenture, bond, debenture, mortgage, deed of trust, voting trust agreement,
    stockholders' agreement, note, loan or credit agreement, joint venture or
    other agreement or instrument to which the Company is a party or by which it
    is or may be bound or to which its properties or assets is or may be
    subject, or (iii) any statute, law, judgment, decree, order, rule or
    regulation applicable to the Company of any arbitrator, court, regulatory
    body or administrative agency or other governmental agency or body, having
    jurisdiction over the Company or any of its activities or properties except
    for, in the case of clauses (ii) and (iii), such conflicts, breaches,
    violations, defaults or impositions that would not have a Material Adverse
    Effect.
	No Consents. No consent, approval, authorization or order of, and
      no registration, qualification or filing with, any court, arbitrator,
      regulatory body, government agency, self-regulatory organization, stock
      exchange or market or other body, domestic or foreign, is required for the
      execution, delivery or performance of this Agreement, the Debentures or
      the Registration Rights Agreement (execution and delivery only), or the
      transactions contemplated hereby or thereby, except for (i) the filing of
      a Form D with the Commission relating to the sale of the Shares and the
      Debentures, (ii) such additional steps as may be required by the
      Commission, and (iii) such additional steps as may be necessary to qualify
      the Shares, the Debentures or the Debenture Shares for sale by the Company
      under state securities or Blue Sky laws.
	Litigation. There is no action, suit, proceeding or investigation
      pending or, to the Company's knowledge, currently threatened against the
      Company that (i) questions the validity of this Agreement or any of the
      Transaction Documents, or the right of the Company to enter into this
      Agreement or any of the Transaction Documents, or to consummate the
      transactions contemplated hereby or thereby, or (ii) would be reasonably
      likely to result in a Material Adverse Effect. Except as set forth in Schedule
      3.12 attached hereto, the Company has not filed any requests for
      confidential treatment of information with the Commission since December
      31, 1997. To the knowledge of the Company, there is no investigation,
      inquiry or proceeding by the Commission of or against the Company
      currently pending, and no such investigation, inquiry or proceeding has
      been threatened.
	Offering Valid. Assuming the accuracy of the representations and
      warranties of the Purchasers contained in Section 4.2 hereof, the offer,
      sale and issuance of the Shares, the Debentures, and the Debenture Shares,
      will be exempt from the registration requirements of the Securities Act
      and will have been registered or qualified (or are exempt from
      registration and qualification) under the registration, permit or
      qualification requirements of all applicable state securities laws.

    	No Violations. The Company is not in violation of its
    Certificate of Incorporation, Bylaws or other organizational documents, or
    in violation of any law, administrative regulation, ordinance or order of
    any court or governmental agency, arbitration panel or authority applicable
    to the Company, which violation, individually or in the aggregate, would be
    reasonably likely to have a Material Adverse Effect, and is not in default
    (and there exists no condition which, with or without the passage of time or
    giving of notice or otherwise, would constitute a default) in the
    performance of any bond, debenture, note or any other evidence of
    indebtedness in any indenture, mortgage, deed of trust or any other
    agreement or instrument to which the Company is a party or by which the
    Company is bound or by which the property of the Company is bound, which
    would be reasonably likely to have a Material Adverse Effect.
	Governmental Permits, Etc. The Company has all necessary
      franchises, licenses, certificates and other authorizations from any
      foreign, federal, state or local government or governmental agency,
      department or body that are currently necessary for the operation of the
      business of the Company as currently conducted except where the failure to
      currently possess could not reasonably be expected to have a Material
      Adverse Effect.
	NASDAQ Compliance. The Company's Common Stock is
      registered pursuant to Section 12(g) of the Exchange Act, and is listed on
      The Nasdaq National Market (the "Nasdaq Stock Market"), and the
      Company has taken no action designed to, or likely to have the effect of,
      terminating the registration of the Common Stock under the Exchange Act or
      delisting the Common Stock from the Nasdaq Stock Market.

    	No Manipulation of Stock. The Company has not taken any
    action outside the ordinary course of business designed to or that might
    reasonably be expected to cause or result in stabilization or manipulation
    of the price of the Common Stock to facilitate the sale or resale of the
    Shares or the Debentures.

    	Investment Company. The Company is not an "investment
    company" or an "affiliated person" of, or
    "promoter" or "principal underwriter" for an investment
    company, within the meaning of the Investment Company Act of 1940, as
    amended.
	Insurance. The Company maintains insurance of the types and in
      the amounts that the Company reasonably believes is adequate for its
      business, including, but not limited to, insurance covering all real and
      personal property owned or leased by the Company against theft, damage,
      destruction, acts of vandalism and all other risks customarily insured
      against by similarly situated companies, all of which insurance is in full
      force and effect.

    	Real Property Holding Corporation. The Company is not a real
    property holding corporation within the meaning of Internal Revenue Code
    Section 897(c)(2) and any regulations promulgated thereunder
	Environmental. Except as would not, singly or in the
      aggregate, reasonably be expected to have a Material Adverse Effect on the
      Company, (i) the Company is in compliance with all applicable
      Environmental Laws (as defined below); (ii) the Company has all permits,
      authorizations and approvals required under any applicable Environmental
      Laws and is in compliance with the requirements of such permits
      authorizations and approvals; (iii) there are no pending or, to the best
      knowledge of the Company, threatened Environmental Claims (as defined
      below) against the Company; and (iv) the Company has taken no action, and
      to the Company's knowledge, no circumstances exist with respect to any
      property or operations of the Company that are reasonably likely to form
      the basis of an Environmental Claim against the Company. For purposes of
      this Agreement, the following terms shall have the following meanings:
      "Environmental Law" means any United States (or other
      applicable jurisdiction's) Federal, state, local or municipal statute,
      law, rule, regulation, ordinance, code, policy or rule of common law and
      any judicial or administrative interpretation thereof, including any
      judicial or administrative order, consent decree or judgment, relating to
      the environment, health, safety or any chemical, material or substance,
      exposure to which is prohibited, limited or regulated by any governmental
      authority. "Environmental Claims" means any and all
      administrative, regulatory or judicial actions, suits, demands, demand
      letters, claims, liens, notices of noncompliance or violation,
      investigations or proceedings relating in any way to any Environmental
      Law.
	Taxes.
      The Company has filed all material tax returns required to be filed, which
      returns are true and correct in all material respects, and the Company is
      not in default in the payment of any taxes, including penalties and
      interest, assessments, fees and other charges, shown thereon due or
      otherwise assessed, other than those being contested in good faith and for
      which adequate reserves have been provided or those currently payable
      without interest which were payable pursuant to said returns or any
      assessments with respect thereto.
	Accountants. To the knowledge of the Company, Ernst & Young
      LLP, who the Company expects will express their opinion with respect to
      the financial statements to be incorporated by reference from the Company's
      Annual Report on Form 10-K for the year ended December 31, 2001 into the
      Registration Statement (as defined in the Registration Rights Agreement)
      and the Prospectus which forms a part thereof, are independent accountants
      as required by the Securities Act and the rules and regulations
      promulgated thereunder (the "Rules and Regulations").

  	REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

Each Purchaser hereby represents and warrants to the Company as follows
  (such representations and warranties do not lessen or obviate the
  representations and warranties of the Company set forth in this Agreement):

  	Requisite Power and Authority. Purchaser has all necessary power
      and authority under all applicable provisions of law to execute and
      deliver this Agreement and each of the Transaction Documents and to carry
      out their provisions. All action on Purchaser's part required for the
      lawful execution and delivery of this Agreement and each of the
      Transaction Documents have been or will be effectively taken prior to the
      Closing. Upon their execution and delivery, this Agreement and each of the
      Transaction Documents will be valid and binding obligations of Purchaser,
      enforceable against Purchaser in accordance with their terms, except as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally the enforcement of, creditors' rights and remedies
      or by other equitable principles of general application, and except as the
      enforceability of the indemnification and contribution provisions of the
      Registration Rights Agreement may be limited by applicable laws or public
      policy relating thereto.
	Investment Representations. Purchaser understands that neither
      the Shares, the Debentures nor the Debenture Shares have been registered
      under the Securities Act. Purchaser also understands that the Shares and
      the Debentures are being offered and sold pursuant to an exemption from
      registration contained in the Securities Act based in part upon Purchaser's
      representations contained in the Agreement. Purchaser hereby represents
      and warrants as follows:

	Purchaser Bears Economic Risk. Purchaser has substantial
        experience in evaluating and investing in private placement transactions
        of securities in companies similar to the Company so that it is capable
        of evaluating the merits and risks of its investment in the Company.
        Purchaser understands that it shall bear the economic risk of the
        investment in the Shares, the Debentures and the Debenture Shares
        indefinitely unless the Shares, the Debentures (or the Debenture Shares)
        are registered pursuant to the Securities Act, or an exemption from
        registration is available. Purchaser understands that except as
        specifically required by the Registration Rights Agreement, the Company
        has no intention of registering the Shares, the Debentures or the
        Debenture Shares. Purchaser also understands that there is no assurance
        that any registration under the Registration Rights Agreement or
        exemption from registration under the Securities Act will be available
        and that, even if available, such registration or exemption may not
        allow Purchaser to transfer all or any portion of the Shares, the
        Debentures or the Debenture Shares under the circumstances, in the
        amounts or at the times Purchaser might propose.
	Acquisition for Own Account. Purchaser is acquiring the Shares,
        the Debentures and the Debenture Shares for Purchaser's own account
        for investment only, and not with a view towards their distribution in
        violation of the Securities Act.
	Publication. Purchaser is aware of no publication of any
        advertisement in connection with the transactions contemplated in this
        Agreement.
	Accredited Investor. Purchaser is an accredited investor within
        the meaning of Regulation D under the Securities Act.
	Rule 144. Purchaser acknowledges and agrees that the Shares,
        the Debentures and, if issued, the Debenture Shares, must be held
        indefinitely unless they are subsequently registered under the
        Securities Act or an exemption from such registration is available.
        Purchaser has been advised or is aware of the provisions of Rule 144
        promulgated under the Securities Act as in effect from time to time,
        which permits limited resale of shares purchased in a private placement
        subject to the satisfaction of certain conditions, including, among
        other things, the availability of certain current public information
        about the Company, the resale occurring following the required holding
        period under Rule 144 and the number of shares being sold during any
        three-month period not exceeding specified limitations.
	Residence. The office or offices of the Purchaser in which its
        investment decision was made is located at the address or addresses of
        the Purchaser set forth on Exhibit A.

  
  
  	CONDITIONS TO CLOSING

	Conditions to Purchasers' Obligations at the Closing. Purchasers'
    obligations to purchase the Shares and the Debentures at the Closing are
    subject to the satisfaction, at or prior to the Closing, of the following
    conditions:

	Representations and Warranties True; Performance of Obligations.
      The representations and warranties made by the Company in Section 3 hereof
      shall be true and correct in all material respects as of the Closing Date,
      and the Company shall have performed and complied with all obligations and
      conditions required to be performed or complied with by the Company prior
      to the Closing.
	Legal Investment. On the Closing Date, the sale and issuance of
      the Shares and the Debentures and the proposed issuance of the Debenture
      Shares shall be legally permitted by all laws and regulations to which
      Purchasers and the Company are subject.
	Consents, Permits, and Waivers. The Company shall have obtained
      any and all consents, permits and waivers necessary or appropriate for
      consummation of the transactions contemplated by the Agreement and each of
      the Transaction Documents (except for such as Purchaser and the Company
      agree may be properly obtained subsequent to the Closing).
	Registration Rights Agreement. A Registration Rights Agreement,
      substantially in the form attached hereto as Exhibit C, shall have
      been executed and delivered by the parties thereto.
	Legal Opinions. The Purchasers shall have received an opinion,
      dated as of the Closing Date, from Cooley Godward LLP, legal counsel to
      the Company, in form and substance reasonably acceptable to the
      Purchasers. The Purchasers shall have received an opinion, dated as of the
      Closing Date, from Richards, Layton & Finger, Delaware legal counsel
      to the Company, in form and substance reasonably acceptable to the
      Purchasers.
	Officer's Certificate. The Purchasers shall have received a
      certificate, dated as of the Closing Date, executed by an officer of the
      Company, confirming that (i) the representations and warranties made by
      the Company in Section 3 hereof are true and correct in all material
      respects as of the Closing Date and (ii) the Company has performed and
      complied with all obligations and conditions required to be performed or
      complied with by it prior to Closing.
	Secretary's Certificate. The Purchasers shall have received a
      certificate, dated as of the Closing Date, executed by the Secretary of
      the Company, attaching (i) the Company's Certificate of Incorporation,
      (ii) the Company's By-laws, and (iii) the resolutions of the Board of
      Directors of the Company approving this Agreement, the Debentures and the
      transactions contemplated hereby and thereby.
	Proceedings and Documents. All corporate and other proceedings in
      connection with the transactions contemplated at the Closing hereby and
      all documents and instruments incident to such transactions shall be
      reasonably satisfactory in substance and form to the Purchasers and their
      counsel, and the Purchasers and their counsel shall have received all such
      counterpart originals or certified or other copies of such documents as
      they may reasonably request.

  	Conditions to Obligations of the Company. The Company's
    obligation to issue and sell the Shares and the Debentures at the Closing is
    subject to the satisfaction, on or prior to such Closing, of the following
    conditions:

	Representations and Warranties True. The representations and
      warranties made by the Purchasers in Section 4 hereof shall be true and
      correct in all material respects as of the Closing Date, and the
      Purchasers shall have performed and complied with all obligations and
      conditions herein required to be performed or complied with by the
      Purchasers prior to the Closing.
	Registration Rights Agreement. A Registration Rights Agreement,
      substantially in the form attached hereto as Exhibit C, shall have
      been executed and delivered by the Purchasers.
	Consents, Permits, and Waivers. The Company shall have obtained
      any and all consents, permits and waivers necessary or appropriate for
      consummation of the transactions contemplated by the Agreement and each of
      the Transaction Documents (except for such as Purchaser and the Company
      agree may be properly obtained subsequent to the Closing).

  
  
  	OTHER AGREEMENTS

	Certain Covenants

	Restrictions on Transfer. Each Purchaser agrees not to make any
      disposition of all or any portion of the Shares, the Debentures or the
      Debenture Shares unless and until:

	there is then in effect a registration statement under the Securities
        Act covering such proposed disposition and such disposition is made in
        accordance with said registration statement; or
	(A) such Purchaser shall have notified the Company of the
        proposed disposition and shall have furnished the Company with a
        reasonably detailed statement of the circumstances surrounding the
        proposed disposition, (B) if requested by the Company, such Purchaser
        shall have furnished the Company with an opinion of Purchaser's own
        counsel to the effect that such disposition will not require
        registration of such securities under the Securities Act, and (C) such
        opinion of Purchaser's counsel shall have been concurred in by counsel
        for the Company, such concurrence not to be unreasonably withheld, and
        the Company shall have advised Purchaser of such concurrence; provided,
        that the Company will not require opinions of counsel for transactions
        made pursuant to Rule 144; and, provided further that in the
        event of any transfer made pursuant to this Section 6.1(a)(ii), the
        transferee shall enter into a written agreement to be bound by and
        comply with all provisions of this Agreement as if such transferee were
        an original "Purchaser" hereunder.

    	Transfer Taxes. On the Closing Date, all stock transfer or other
      taxes (other than income taxes) which are required to be paid in
      connection with the sale and transfer of the Shares to be sold to the
      Purchaser hereunder will be, or will have been, fully paid or provided for
      by the Company and all laws imposing such taxes will be or will have been
      fully complied with.
	Insurance. For so long as any Purchaser holds any Shares or
      Debentures, the Company will continue to maintain insurance of the types
      and in the amounts that the Company reasonably believes is adequate for
      its business, including, but not limited to, insurance covering all real
      and personal property owned or leased by the Company against theft,
      damage, destruction, acts of vandalism and all other risks customarily
      insured against by similarly situated companies, all of which insurance is
      in full force and effect.
	Requests for Confidential Treatment of Information.
      If resolution of any requests for the confidential treatment of
      information is required by the Commission to declare a Registration
      Statement (as defined in the Registration Rights Agreement) effective, the
      Company will use its commercially reasonable best efforts to promptly file
      with the Commission and resolve such requests.
	Legend.

	Each Purchaser acknowledges and agrees that all certificates
      representing the Shares or any Debenture Shares shall be stamped or
      otherwise imprinted with a legend substantially similar to the following
      (in addition to any legend required under applicable state securities
      laws):

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
    NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
    "ACT"), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
    ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT
    OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE
    COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED."

    	Each Purchaser acknowledges and agrees that each Debenture shall be
      stamped or otherwise imprinted with a legend substantially similar to the
      following (in addition to any legend required under applicable state
      securities laws):

"THE DEBENTURE REPRESENTED HEREBY HAS NOT BEEN
    REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
    "ACT"), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
    ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT
    OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE
    COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED."

    	Each Purchaser and the Company acknowledge and agree that the legend set
      forth in Section 6.2(a) hereof shall be removed from the certificates
      representing the Shares or any Debenture Shares at the earliest to occur
      of such time as (i) such Shares or Debenture Shares are effectively
      registered under the Securities Act and disposed of in accordance with the
      registration statement covering such Shares or Debenture Shares, (ii) such
      Shares or Debenture Shares are saleable by the holder thereof pursuant to
      Rule 144(k) promulgated under the Securities Act or (iii) such Shares or
      Debenture Shares are sold to the public pursuant to Rule 144 promulgated
      under the Securities Act. Promptly after the declaration by the Commission
      that a registration statement that registers the Shares or any Debenture
      Shares is effective, the Company shall make appropriate provisions with
      its transfer agent for the registration of transfer of Shares or Debenture
      Shares sold under such registration statement without the requirement that
      an opinion of counsel be delivered .

  	MISCELLANEOUS

	Governing Law. This Agreement shall be governed in all respects by
    the laws of the State of Delaware, without giving effect to the principles
    of conflicts of laws.
	Survival. The representations and warranties in this Agreement
    shall survive the Closing and shall terminate on the date that is two (2)
    years after the Closing Date. The covenants and agreements made herein shall
    survive the Closing and shall terminate on the date that no Debentures are
    outstanding. All statements as to factual matters contained in any
    certificate or other instrument delivered by or on behalf of the Company
    pursuant hereto in connection with the transactions contemplated hereby
    shall be deemed to be representations and warranties by the Company
    hereunder solely as of the date of such certificate or instrument.
	Successors and Assigns. Except as otherwise expressly provided
    herein, the provisions hereof shall inure to the benefit of, and be binding
    upon, the successors, assigns, heirs, executors and administrators of the
    parties hereto and shall inure to the benefit of and be enforceable by each
    person who shall be a holder of the Shares or the Debentures from time to
    time.
	Entire Agreement. This Agreement, the Exhibits hereto, including
    the Debentures, the Registration Rights Agreement, and the other documents
    delivered pursuant hereto constitute the full and entire understanding and
    agreement between the parties with regard to the subjects hereof and no
    party shall be liable or bound to any other in any manner by any
    representations, warranties, covenants and agreements except as specifically
    set forth herein and therein.
	Severability. In case any provision of the Agreement shall be
    invalid, illegal or unenforceable in any respect, the validity, legality and
    enforceability of the remaining provisions contained herein shall not in any
    way be affected or impaired thereby.
	Amendment and Waiver.

	This Agreement may be amended or modified only upon the written consent
      of the Company and Purchasers holding a majority of the Shares initially
      purchased hereunder.
	The obligations of the Company and the rights of the Purchasers under
      this Agreement may be waived only with the written consent of the
      Purchasers holding a majority of the Shares initially purchased hereunder.

  	Notices. All notices required or permitted hereunder shall be in
    writing and shall be deemed effectively given: (i) upon personal delivery to
    the party to be notified; (ii) when sent by confirmed telex or facsimile if
    sent during normal business hours of the recipient, if not, then on the next
    business day; or (iii) one (1) day after deposit with a nationally
    recognized overnight courier, specifying next day delivery, with written
    verification of receipt. All communications shall be sent to the Company at
    the address as set forth on the signature page hereof, with a copy to
    Francis R. Wheeler, Esq., Cooley Godward LLP, 380 Interlocken Crescent,
    Suite 900, Broomfield, CO 80021, and to Purchasers at the address as set
    forth on Exhibit A hereto, with a copy to James J. Marino, Esq.,
    Dechert, Princeton Pike Corporate Center, P.O. Box 5218, Princeton, NJ
    08543, or at such other address as the Company or Purchasers may designate
    by ten (10) days advance written notice to the other parties hereto.
	Expenses. Each party shall pay all costs and expenses that it
    incurs with respect to the negotiation, execution, delivery and performance
    of the Agreement; provided, however, that the Company shall reimburse
    the reasonable fees and expenses of one special counsel for the Purchasers.
	Arbitration. If any dispute shall arise between the parties hereto
    with reference to the interpretation of this Agreement or their rights
    hereunder, the dispute shall be settled solely and exclusively through
    arbitration in accordance with the rules of the American Arbitration
    Association. The dispute shall be referred to three (3) arbitrators. One (1)
    arbitrator shall be chosen by each party and the two (2) chosen shall
    promptly select a third arbitrator. If either party refuses or neglects to
    appoint an arbitrator within thirty (30) days after the receipt of written
    notice from the other party requesting arbitration and naming its
    arbitrators, the requesting party may name an arbitrator for the other
    party. Each party shall submit its case to the three (3) arbitrators within
    thirty (30) days of the appointment of the third arbitrator unless such time
    is extended by the arbitrators or a majority of them or by agreement between
    the parties. The decision of a majority of the arbitrators shall be rendered
    within ninety (90) days of the selection of the third arbitrator and shall
    be final and binding on both parties. Each party shall bear the expense of
    its own arbitrator, or one-half of the expense of two (2) arbitrators if
    both are appointed by the requesting party as provided above, and shall
    jointly and equally bear with the other the expense of the third arbitrator
    and any and all costs, fees and other expenses directly associated with the
    administration of the arbitration proceedings. Any such arbitration shall
    take place in Wilmington, Delaware. For purposes of the enforcement of the
    final arbitration decision, the parties agree to be subject to the
    jurisdiction of a court of competent jurisdiction in the State of Delaware.

  	Titles and Subtitles. The titles of the sections and subsections of
  the Agreement are for convenience of reference only and are not to be
  considered in construing this Agreement.
	Counterparts. This Agreement may be executed in any number of
    counterparts, each of which shall be an original, but all of which together
    shall constitute one instrument.
	Broker's Fees. Each party hereto represents and warrants that no
    agent, broker, investment banker, person or firm acting on behalf of or
    under the authority of such party hereto is or will be entitled to any
    broker's or finder's fee or any other commission directly or indirectly
    in connection with the transactions contemplated herein. Each party hereto
    further agrees to indemnify each other party for any claims, losses or
    expenses incurred by such other party as a result of the representation in
    this Section 7.12 being untrue.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

COMPANY:

NAPRO BIOTHERAPEUTICS, INC.

By: /s/

Name: Gordon Link

Title: Vice President and Chief Financial Officer

Address: 6304 Spine Road, Unit A

Boulder, CO 80301

Attn: Chief Financial Officer

PURCHASERS:

TL VENTURES V L.P.

By: TL Ventures V Management L.P.,

its general partner

By: TL Ventures V LLC,

its manager

By: /s/

Name: Robert E. Kieth, Jr.

Title: Managing Director

  
    
    Address: 700 Building

    435 Devon Park Drive

    Wayne, PA 19087

    Attn: Chris Moller

  

TL VENTURES V INTERFUND L.P.

By: TL Ventures V LLC,

its general partner

By: /s/

Name: Robert E. Kieth, Jr.

Title: Managing Director

  
    
    Address: 700 Building

    435 Devon Park Drive

    Wayne, PA 19087

    Attn: Chris Moller

    
     

    

    

  

  Exhibit A

  Schedule Of Purchasers

	
      

      

      Name & Address
	
      

      Number of Shares
	
      

      Purchase Price
	
      Principal Amount of Debenture
	
      

      Total Investment

	
      TL Ventures V L.P.

      700 Building

      435 Devon Park Drive

      Wayne, PA 19087

      Attn: Chris Moller
	
      873,776
	
      $ 7,863,984.00
	
      $ 7,863,983.52
	
      $ 15,727,967.52

	
      TL Ventures V Interfund L.P.

      700 Building

      435 Devon Park Drive

      Wayne, PA 19087

      Attn: Chris Moller
	
      15,113
	
      $ 136,017.00
	
      $ 136,016.48
	
      $ 272,033.48

	 	 	 	 	 
	
      Total:
	
      888,889
	
      $8,000,001.00
	
      $8,000,000.00
	
      $16,000,001.00

 

 

 

Exhibit B

Form of 4% Convertible Subordinated Debenture

[intentionally omitted]

 

Exhibit C

Form of Registration Rights Agreement

[intentionally omitted]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]