Document:

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                                                                   EXHIBIT 10.21

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

         THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is
entered into and made effective as of February 3, 2003 by and between THE MEN'S
WEARHOUSE, INC., a Texas corporation (the "Company"), and DAVID H. EDWAB
("Employee"), amending and restating the Employment Agreement dated February 3,
2002 (the "Original Agreement").

         WHEREAS, the Company and Employer desire to amend Sections 2(c), 2(d),
2(e), 4, 10 and 12 of the Original Agreement, to add a new Section (f) to the
Original Agreement and to restate the Original Agreement to read as set forth
herein;

         NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the Company and Employee hereby agree to amend and
restate the Original Agreement as follows:

         1.       Employment and Duties. The Company hereby agrees to employ
Employee as Vice Chairman of the Board, and Employee hereby accepts such
employment and agrees to serve the Company in such capacity on the terms and
subject to the conditions set forth in this Agreement. Subject to the ultimate
direction and control of the Chairman of the Board and Chief Executive Officer
of the Company and to the Company's Board of Directors, Employee shall be
responsible to assist the Chairman of the Board and Chief Executive Officer of
the Company with the determination and implementation of the strategic direction
of the Company and oversee the implementation of the business plan of the
Company and, in connection therewith, to interact with and provide guidance to
the other executive officers of the Company. During his employment hereunder,
Employee shall devote his full business time, energy, and ability principally to
the business and interests of the Company and shall not, without the Company's
prior written consent, render to others services of any kind for compensation,
or engage in any other business activity that would materially interfere with
the performance of his duties under this Agreement.

         2.       Compensation and Benefits of Employment.

                  (a)      As compensation for the services to be rendered by
Employee hereunder, the Company shall pay to Employee a base annual salary
("Annual Salary") of $560,000.00 per year, in equal installments in accordance
with the customary payroll practices of the Company. The parties shall comply
with all applicable withholding requirements in connection with all compensation
payable to Employee. The Company's Board of Directors may, in its sole
discretion, review and adjust upward Employee's Base Salary (as defined below)
from time to time, but no downward adjustment in Employee's Base Salary may be
made during the term of this Agreement.

                  (b)      Employee shall receive annually a stipulated amount
of up to $40,000 ("Discretionary Amount" and together with Annual Salary,
collectively referred to herein as "Base Salary") which will be expended by the
Company on behalf of Employee to cover, or paid

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to Employee to reimburse Employee for, various business-related expenses such
as monthly dues for country, luncheon or social clubs, automobile expenses,
upgraded travel beyond that of the Company's regular employee policy and other
personal travel expenses not covered by Section 3 hereof and financial and tax
planning expenses. The Company agrees that Employee shall be entitled to
reimbursement of all such business-related expenses incurred by Employee;
provided, however, that payment of such reimbursement shall be made only against
proper receipts or other documentary evidence of such expenses. In the event
that less than $40,000 is expended during the course of any one-year period,
Employee shall not be entitled to receive directly the remainder of such amount.
This reimbursement shall be in addition to any reimbursement provided pursuant
to Section 3 below.

                  (c)      At the end of the term of this Agreement, Employee
shall be entitled to receive a bonus of $2,400,000, which shall accrue at the
rate of $50,000 per full month of service hereunder beginning with February 3,
2003 (the "Long-Term Incentive Bonus"); provided, however, that such Long-Term
Incentive Bonus shall be subject to a credit equal to the "Stock Option Value"
of (i) those stock options held by Employee on the date hereof and identified on
Exhibit A hereto (the "Existing Stock Options") and (ii) those stock options
issued to Employee subsequent to the date hereof (the "Subsequent Stock
Options"). For purposes of this Agreement, "Stock Option Value" shall equal the
(a) the sum of the products of the Option Margin for each Existing Stock Option
and each Subsequent Stock Option which has a positive Option Margin at the time
of determination of the Option Margin for each Existing Stock Option and each
Subsequent Stock Option times the number of shares of stock subject to such
Existing Stock Options and Subsequent Stock Options which are exercisable by the
Employee at the end of such four-year period (or the date of Employee's
termination, as the case may be) minus (b) $500,000. For purposes of this
Agreement, the Option Margin for each Existing Stock Option and each Subsequent
Stock Option shall mean the difference between (a) the average closing price for
the Company's common stock, par value $.01 per share, as reported by the New
York Stock Exchange, for the twenty (20) trading days immediately prior to the
end of such four-year term (or the date of Employee's termination, as the case
may be) and (b) the applicable option price of each such Existing Stock Option
and Subsequent Stock Option. To the extent the Stock Option Value exceeds the
accrued Long-Term Incentive Bonus, the Company shall be entitled to certain
credits as provided in this Agreement equal to the lesser of such excess or
$600,000 (the "Stock Option Value Credit").

                  (d)      On each of January 3, 2004 and February 3, 2004, the
Company shall pay to Employee $300,000 as bonus under this Agreement.

                  (e)      Employee shall be entitled to participate in and have
the benefits under the terms of all life, accident, disability and health
insurance plans, pension, profit sharing, incentive compensation and savings
plans and all other similar plans and benefits, including the split dollar
insurance program, which the Company from time to time makes available to its
senior management executives in the same manner and at least at the same
participation level as other senior management executives.

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                  (f)      The Company shall make the premium payments on the
insurance policies referred to in and covered by the Split Dollar Agreement
dated May 25, 1995, between the Employee, George Zimmer, as Trustee of the David
H. Edwab 1995 Irrevocable Trust, and the Company on behalf of, and as
compensation to, the Employee and shall make an additional payment to the
Employee at such time as the Employee shall owe any income tax in respect to
such compensation (including any estimated payment of such income tax) such that
the payment shall equal as nearly as possible the federal and state income tax
payable with respect to such compensation paid on behalf of the Employee plus
all federal and state income taxes owed as a result of such additional payment.
For purposes of determining the amount owed, the payment to Employee shall be
deemed to be subject to the highest marginal federal, state and local income tax
rate applicable to individuals and there shall be taken into consideration the
deductibility of state and local income taxes as applicable to Employee for
purposes of determining federal income tax. If and when no longer prohibited by
law from doing so as a result of Section 13(k)(i) of the Securities Exchange Act
of 1934 or other legal prohibitions, the Company may elect to revert to loaning
the premiums to the Employee on a non recourse basis other than secured by the
proceeds of the insurance policies in lieu of the foregoing provisions of this
Section 2(f), provided the Company elects to treat all executives with similar
split-dollar insurance arrangements in the same manner.

         3.       Business Expenses. The Company shall promptly reimburse
Employee for all appropriately documented, reasonable business expenses incurred
by Employee in accordance with the Company's policies related thereto.

         4.       Term. This Agreement shall commence effective as of the date
hereof, and if not terminated earlier as herein provided, shall terminate on
February 2, 2007. Notwithstanding the foregoing, if the Company shall not have
offered to Employee the opportunity to enter into a new employment agreement
prior to February 2, 2006, with terms, in all respects, no less favorable to
Employee than the terms of this Agreement and with a term lasting until at least
February 2, 2009, Employee shall have the right to elect by written notice
delivered to the Company prior to April 1, 2006, to terminate his employment
effective as of February 2, 2007; provided that for purposes of determining if
the new employment agreement is no less favorable, (i) the bonus provided for in
Section 2(c) shall accrue at the rate of $50,000 per full month for the extended
period of the Agreement, (ii) the credit against the bonus payment shall be
based on the Stock Option Value of all stock options referred to in Section
2(c)(ii) which become exercisable by Employee after February 2, 2007, (iii)
subclause (b) of the second to last sentence of Section 2(c) shall be changed to
be the greater of the applicable option price of each such subsequent Stock
Option or the average closing price determined in accordance with subclause (a)
of the last sentence of Section 2(c), (iv) Section 2(d) shall not apply and (v)
the new employment agreement may provide that the first cash payments to
Employee thereunder shall be reduced by the Stock Option Value Credit, if any.
In the event of such termination, Employee shall be entitled to continue to
receive (a) his Base Salary at the then current rate for a period of one year
following the date of termination; provided that the Company shall be entitled
to a credit against payments of such Base Salary equal to the Stock Option Value
Credit, if any and (b) all other benefits to which Employee is entitled
hereunder for a period of two years following the date of termination. If the
Company offers to Employee a new employment agreement in accordance

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with this Section 4 and Employee declines to accept it, Employee's employment
hereunder shall terminate on February 2, 2007, at which time Employee shall be
entitled to all compensation, rights and benefits accrued hereunder at such
date. However, if the Company shall notify Employee prior to February 2, 2006
that it does not wish to enter into a new employment agreement following the
termination of this Agreement, Employee shall be entitled to continue to receive
(a) his Base Salary at the then current rate for a period of one year following
the date of termination; provided that the Company shall be entitled to a credit
against payments of such Base Salary equal to the Stock Option Value Credit, if
any and (b) all other benefits to which Employee is entitled hereunder for a
period of two years following Employee's termination at the end of the term of
this Agreement. In addition to any continuation of benefits provided for in this
Section 4, the Company shall continue to maintain those life insurance policies,
including the transferability provisions thereof, maintained by the Company for
the benefit of Employee on the date hereof (the "Existing Life Insurance
Policies") for a period of two years following the date of any such termination.

         5.       Termination by the Company Without Cause or Termination by
Employee for "Good Reason".

                  (a)      The Company may, by delivering 30 days prior written
notice to Employee, terminate Employee's employment at any time without cause,
and Employee may, by delivering 30 days prior written notice to the Company,
terminate Employee's employment for "good reason", as defined below. If such
termination without cause or for good reason occurs, Employee shall be entitled
(i) to receive a lump sum payment equal to (a) all amounts owed through the date
of termination plus (b) the accrued Long-Term Incentive Bonus plus the bonus
payable pursuant to Section 2(d) if they have not been paid and minus the Stock
Option Value, and (ii) to continue to receive (a) his Base Salary at the then
current rate and (b) all benefits to which Employee is entitled hereunder, for a
period of two years following the date of termination. In addition, the Company
shall continue to maintain the Existing Life Insurance Policies for a period of
two years following the date of any such termination.

                  (b)      For purposes of this Section 5, "good reason" shall
mean the occurrence of any of the following events:

                           (i)      Removal, without the consent of Employee in
writing, from the office of Vice Chairman of the Board or a material reduction
in Employee's authority or responsibility but not termination of Employee for
"cause", as defined in Section 7; or

                           (ii)     The Company otherwise commits a material
breach of this Agreement.

                  (c)      The Company shall pay any attorney fees incurred by
Employee in reasonably seeking to enforce the terms of this Section 5.

         6.       Termination Upon Death or Disability. If Employee's employment
is terminated because of death or on account of his becoming permanently
disabled (as defined in Section 7),

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Employee, or his estate, if applicable, shall be entitled (i) to receive a lump
sum payment equal to (a) all amounts owed through the date of termination plus
(b) the accrued Long-Term Incentive Bonus plus the bonus payable pursuant to
Section 2(d) if they have not been paid and minus the Stock Option Value, and
(ii) to continue to receive (a) his Base Salary at the then current rate for a
period of two years following the date of termination and (b) all benefits to
which Employee is entitled hereunder through the end of the term of this
Agreement. In addition, in the event Employee becomes permanently disabled, the
Company shall continue to maintain the Existing Life Insurance Policies through
the end of the term of this Agreement.

         7.       Termination by the Company for Cause. The Company may
terminate this Agreement at any time if such termination is for "cause", as
defined below, by delivering to Employee written notice describing the cause of
termination 30 days before the effective date of such termination and by
granting Employee at least 30 days to cure the cause. In the event that the
employment of Employee is terminated for "cause", Employee shall be entitled
only to (i) all amounts owed through the date of termination and (ii) his Annual
Salary earned pro rata to his date of termination, but Employee shall not be
entitled to any Base Salary continuation payments or benefits continuation
(except as specifically provided by the terms of an employee benefit plan of the
Company). If at the time of such termination the Stock Option Value would be a
positive number, Employee shall forfeit Existing Stock Options and Subsequent
Stock Options then exercisable having a Stock Option Value determined in
accordance with Section 2(c) equal to the lesser of the then total Stock Option
Value or $600,000. "For cause" shall be limited to the occurrence of the
following events:

                  (a)      Conviction of or a plea of nolo contendere to the
charge of a felony (which, through lapse of time or otherwise, is not subject to
appeal);

                  (b)      Willful refusal without proper legal cause to
perform, or gross negligence in performing, Employee's duties and
responsibilities after 30 days written notice and an opportunity to cure;

                  (c)      Material breach of fiduciary duty to the Company
through the misappropriation of Company funds or property; or

                  (d)      The unauthorized absence of Employee from work (other
than for sick leave or personal disability) for a period of 60 working days or
more during a period of 90 working days.

         For purposes of this Agreement, Employee shall be deemed to
"permanently disabled" if Employee shall be considered to be permanently and
totally disabled in accordance with the Company's disability plan, if any, for a
period of 180 days or more. If there should be a dispute between the Company and
Employee as to Employee's physical or mental disability for purposes of this
Agreement, the question shall be settled by the opinion of an impartial
reputable physician or psychiatrist agreed upon by the parties or their
representatives, or if the parties cannot agree within ten (10) calendar days
after a request for designation of such party, then a physician or

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psychiatrist shall be designated by the Valley Hospital in Northern New Jersey.
The parties agree to be bound by the final decision of such physician or
psychiatrist.

         8.       Voluntary Termination by Employee. Employee may terminate this
Agreement at any time upon delivering 30 days written notice to the Company. In
the event of such voluntary termination other than for "good reason" as defined
in Section 5, Employee shall be entitled to (i) all amounts owed through the
date of termination and (ii) his Annual Salary earned pro rata to his date of
termination, but no Base Salary continuation payments or benefits continuation
(except as specifically provided by the terms of an employee benefit plan of the
Company). If at the time of such termination the Stock Option Value would be a
positive number, Employee shall forfeit Existing Stock Options and Subsequent
Stock Options then exercisable having a Stock Option Value determined in
accordance with Section 2(c) equal to the lesser of the then total Stock Option
Value or $600,000. On or after the date the Company receives notice of
Employee's resignation, the Company may, at its option, pay Employee all amounts
owed to Employee pursuant to this Section 8 through the effective date of his
resignation and terminate his employment immediately.

         9.       Exclusivity of Termination Provisions. The termination
provisions of this Agreement regarding the parties' respective obligations in
the event Employee's employment is terminated are intended to be exclusive and
in lieu of any other rights or remedies to which Employee or the Company may
otherwise be entitled at law, in equity or otherwise. It is also agreed that,
although the personnel policies and fringe benefit programs of the Company may
be unilaterally modified from time to time, the termination provisions of this
Agreement are not subject to modification, whether orally, impliedly or in
writing, unless any such modification is mutually agreed upon and signed by the
parties.

         10.      Non-Competition. Employee acknowledges that he has and, while
employed, will acquire unique and valuable experience with respect to the
businesses, operations, plans and strategies of the Company and its
subsidiaries. Employee hereby covenants and agrees that during the term of this
Agreement and for a period of one year thereafter, he will not directly or
indirectly compete with the business of the Company or its subsidiaries. For
purposes of this Agreement, the term "compete with the business of the Company
and its subsidiaries" shall include Employee's participation in any operations
whose primary business competes with any business now conducted by the Company
or its subsidiaries, including the sale of menswear or shoes at retail, or the
sale of corporate logo merchandise, or any material line of business proposed to
be conducted by the Company or one or more of its subsidiaries known to Employee
and with respect to which the Employee devoted time to as part of his employment
hereunder on behalf of the Company or one or more of its subsidiaries, including
but not limited to the business of dry cleaning, whether such participation is
individually or as an officer, director, joint venturer, agent, or holder of an
interest (except as a holder of a less than 1% interest in a publicly traded
entity or mutual fund) of any individual, corporation, association, partnership,
joint venture or other business entity so engaged. This non-competition covenant
shall be applicable with respect to the United States and Canada and any other
country in which Employee would be competing with the business of the Company or
its subsidiaries as set forth in this Section 10. Employee and the Company agree
that a monetary remedy for a breach of

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this Section 10 or of Section 11 below will be inadequate and will be
impracticable and extremely difficult to prove, and further agree that such a
breach would cause the Company irreparable harm, and that the Company shall be
entitled to specific performance and/or temporary and permanent injunctive
relief without the necessity of proving actual damages. Employee agrees that the
Company shall be entitled to such specific performance and/or injunctive relief,
including temporary restraining orders, preliminary injunctions and permanent
injunctions, without the necessity of posting bond or other undertaking in
connection therewith. Any such requirement of bond or undertaking is hereby
waived by Employee and Employee acknowledges that in the absence of such a
waiver, a bond or undertaking may be required by the court. In the event of
litigation to enforce this covenant, the courts are hereby specifically
authorized to reform this covenant as and to the extent, but only to such
extent, necessary in order to give full force and effect hereto to the maximum
degree permitted by law. Employee also agrees that if Employee is in breach of
this Section 10, the Company may cease all payments required under this
Agreement.

         11.      Proprietary Information.

                  (a)      Employee acknowledges and agrees that he has
acquired, and may in the future acquire as a result of his employment with the
Company or otherwise, Proprietary Information (as defined below) of the Company
which is of a confidential or trade secret nature, and all of which has a great
value to the Company and is a substantial basis and foundation upon which the
Company's business is predicated. Accordingly, Employee agrees to regard and
preserve as confidential at all times all Proprietary Information and to refrain
from publishing or disclosing any part of it to any person or entity and from
using, copying or duplicating it in any way by any means whatsoever, except in
the course of his employment under this Agreement and in furtherance of the
business of the Company or as required by applicable law or legal process,
without the prior written consent of the Company. In the event of a breach or
threatened breach of this Section 11, the Company shall be entitled to the same
remedies as provided in Section 10 with respect to a breach thereof.

                  (b)      "Proprietary Information" includes all information
and data in whatever form, tangible or intangible, pertaining in any manner to
pricing policy, marketing programs, advertising, employee training, and specific
inventory purchase pricing and any written information, including customer
lists, of the Company or any affiliate thereof, unless the information is or
becomes publicly known through lawful means.

         12.      Notice. All notices, requests, consents, directions and other
instruments and communications required or permitted to be given under this
Agreement shall be in writing and shall be deemed to have been duly given if
delivered in person, by courier, by overnight delivery service with proof of
delivery or by prepaid registered or certified first-class mail, return receipt
requested, addressed to the respective party at the address set forth below, or
if sent by facsimile or other similar form of communication (with receipt
confirmed) to the respective party at the facsimile number set forth below:

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         To the Company:            The Men's Wearhouse, Inc.
                                    5803 Glenmont Drive
                                    Houston, Texas 77081
                                    Attention: Neill P. Davis
                                    Facsimile: (713) 592-7102
                                    Confirm: (713) 592-7256

         To Employee:               David H. Edwab
                                    1410 Broadway, 29th Floor
                                    New York, NY 10018
                                    Facsimile: (917) 777-0508
                                    Confirm: (917) 777-0500

or to such other address or facsimile number and to the attention of such other
person as either party may designate by written notice. All notices and other
communication shall be deemed to have been duly given when delivered personally
or three days after mailing or one day after depositing such notice with an
overnight courier or transmission of a facsimile or other similar form of
communication.

         13.      Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto, their respective heirs,
executors, administrators, successors and assigns; provided, however, that
neither the Company nor Employee may assign any duties under this Agreement
without the prior written consent of the other.

         14.      Limitation. The Agreement shall not confer any right or impose
any obligation on the Company to continue the employment of Employee in any
capacity, or limit the right of the Company or Employee to terminate Employee's
employment.

         15.      Further Assurances. Each party hereto agrees to perform such
further actions, and to execute and deliver such additional documents, as may be
reasonably necessary to carry out the provisions of this Agreement.

         16.      Severability. In the event that any of the provisions, or
portions thereof, of this Agreement are held to be unenforceable or invalid by
any court of competent jurisdiction, the validity and enforceability or the
remaining provisions, or portions thereof, shall not be affected thereby.

         17.      Arbitration.

                  (a)      Any dispute, controversy, or claim arising out of or
relating to this Agreement, or the breach, termination or invalidity hereof,
including claims for tortious interference or other tortious or statutory claims
arising before, during or after termination, providing only that such claim
touches upon matters covered by this contract, shall be finally settled by
arbitration administered by the American Arbitration Association ("AAA")
pursuant to the Commercial Arbitration Rules as presently in force, except as
modified by the specific

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provisions of this Agreement. The parties expressly agree that nothing in this
Agreement shall prevent the parties from applying to a court that would
otherwise have jurisdiction over the parties for provisional or interim
measures, including injunctive relief. After the arbitration panel is empaneled,
it shall have sole jurisdiction to hear such applications, except that the
parties agree that any measures ordered by the arbitrators may be immediately
and specifically enforced by a court otherwise having jurisdiction over the
parties. The parties agree that judgment on the arbitration award may be entered
by any court having jurisdiction thereof.

                  (b)      The parties agree that the federal and state courts
located in Houston, Texas shall have exclusive jurisdiction over an action
brought to enforce the rights and obligations created in or arising from this
agreement to arbitrate, and each of the parties hereto irrevocably submits to
the jurisdiction of said courts. Notwithstanding the above, application may be
made by a party to any court of competent jurisdiction wherever situated for
enforcement of any judgment and the entry of whatever orders are necessary for
such enforcement. Process in any action arising out of or relating to this
agreement may be served on any party to the agreement anywhere in the world by
delivery in person against receipt or by registered or certified mail, return
receipt requested.

                  (c)      The arbitration shall be conducted before a tribunal
composed of three neutral arbitrators drawn from, in the first instance, the
Texas Large Complex Claims panel and then, if necessary, from the Commercial
panel. Each arbitrator shall sign an oath agreeing to be bound by the Code of
Ethics for Arbitrators in Commercial Disputes promulgated by the AAA for Neutral
Arbitrators. It is the intent of the parties to avoid the appearance of
impropriety due to bias or partiality on the part of any arbitrator. Prior to
his or her formal appointment, each arbitrator shall disclose to the parties and
to the other members of the tribunal, any financial, fiduciary, kinship or other
relationship between that arbitrator and any party or its counsel, or between
that arbitrator and any individual or entity with any financial, fiduciary,
kinship or other relationship with any party. For the purpose of this agreement,
"appearance of impropriety" shall be defined as such relationship or behavior as
would cause a reasonable person to believe that bias or partiality on the part
of the arbitrator may exist in favor of any party. Any award or portion thereof,
whether preliminary or final, shall be in a written opinion containing findings
of fact and conclusions of law signed by each arbitrator. The arbitrator
dissenting from an award or portion thereof shall issue a dissent from the award
or portion thereof in writing, stating the reasons for his dissent. The
arbitrators shall hear and determine any preliminary issue of law asserted by a
party to be dispositive of any claim, in whole or part, in the manner of a court
hearing a motion to dismiss for failure to state a claim or for summary
judgment, pursuant to such terms and procedures as the arbitrators deem
appropriate.

                  (d)      It is the intent of the parties that, barring
extraordinary circumstances, any arbitration hearing shall be concluded within
two months of the date the statement of claim is received by the AAA. Unless the
parties otherwise agree, once commenced, hearings shall be held 5 days a week,
with each hearing day to begin at 9:00 A.M. and to conclude at 5:00 P.M. The
parties may upon agreement extend these time limits, or the chairman of the
panel may extend them if he determines that the interests of justice otherwise
requires. The arbitrators shall use their best efforts to issue the final award
or awards within a period of 30 days after closure of

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the proceedings. Failure to do so shall not be a basis for challenging the
award. The parties and arbitrators shall treat all aspects of the arbitration
proceedings, including without limitation, discovery, testimony, and other
evidence, briefs and the award, as strictly confidential. The place of
arbitration shall be Houston, Texas, USA unless otherwise agreed by the parties.

                  (e)      The parties agree that discovery shall be limited and
shall be handled expeditiously. Discovery procedures available in litigation
before the courts shall not apply in an arbitration conducted pursuant to this
agreement. However, each party shall produce relevant and non-privileged
documents or copies thereof requested by the other parties within the time
limits set and to the extent required by order of the arbitrators. All disputes
regarding discovery shall be promptly resolved by the arbitrators. No witness or
party may be required to waive any privilege recognized at law. The parties
hereby waive any claim to any damages in the nature of punitive, exemplary, or
statutory damages in excess of compensatory damages, or any form of damages in
excess of compensatory damages, and the arbitration tribunal is specially
divested of any power to award any damages in the nature of punitive, exemplary,
or statutory damages in excess of compensatory damages, or any form of damages
in excess of compensatory damages. The party prevailing on substantially all of
its claims shall be entitled to recover its costs, including attorneys' fees,
for the arbitration proceedings, as well as for any ancillary proceeding,
including a proceeding to compel arbitration, to request interim measures, or to
confirm or set aside an award.

         18.      Governing Law. This Agreement shall be governed and construed
under and interpreted in accordance with the laws of the State of Texas without
giving effect to the doctrine of conflict of laws.

         19.      Entire Agreement; Waiver; Interpretation. This Agreement
constitutes the entire agreement of the parties, and supersede all prior
agreements, oral or written, with respect to the subject matter of this
Agreement. No change, modification or waiver of any provisions of this Agreement
shall be enforceable unless contained in a writing signed by the party against
whom enforcement is sought. The failure at any time to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of either party thereafter to enforce
each and every provisions hereof in accordance with its terms. No presumption
shall be construed against the party drafting this Agreement.

         20.      Employee's Representation. Employee represents and warrants
that (i) he is free to enter into this Agreement and to perform each of the
terms and covenants of it, (ii) he is not restricted or prohibited,
contractually or otherwise, from entering into and performing this Agreement,
(iii) his execution and performance of this Agreement is not a violation or
breach of any other agreement between Employee and any other person or entity
and (iv) he has been advised by legal counsel as to the terms and provisions
hereof and the effort thereof and fully understands the consequences thereof.

         21.      Company's Representation. The Company represents and warrants
that (i) it is free to enter into this Agreement and to perform each of the
terms and covenants of it, (ii) it is not restricted or prohibited,
contractually or otherwise, from entering into and performing this

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Agreement, (iii) its execution and performance of this Agreement is not a
violation or breach of any other agreement between Employee and any other person
or entity and (iv) this Agreement is a legal, valid and binding agreement of the
Company, enforceable in accordance with its terms.

         22.      Return of Company Property. Employee acknowledges that all
Proprietary Information and other property and equipment of the Company or any
affiliate which Employee accumulates during his employment are the property of
the Company and shall be returned to the Company immediately upon his
termination of employment.

         IN WITNESS WHEREOF, the parties have caused this Agreement as of the
date first written above.

                                             THE MEN'S WEARHOUSE, INC.

                                             By:        /s/ GEORGE ZIMMER
                                                 -------------------------------
                                             Name:
                                             Title:

                                                        /s/ DAVID H. EDWAB
                                             -----------------------------------
                                                        DAVID H. EDWAB

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                                                                       EXHIBIT A

                             EXISTING STOCK OPTIONS

<TABLE>
<CAPTION>
                                    Vesting
                                    -------
<S>                                 <C>
15,000 shares @ $15.75              1/6/98
15,000 shares @ $15.75              1/6/99
15,000 shares @ $15.75              1/6/00
15,000 shares @ $15.75              1/6/01
15,000 shares @ $15.75              1/6/02
15,000 shares @ $21.50              1/14/99
15,000 shares @ $21.50              1/14/00
15,000 shares @ $21.50              1/14/01
15,000 shares @ $21.50              1/14/03
15,000 shares @ $21.50              1/14/04
15,000 shares @ $21.50              1/14/05
10,000 shares @ $23.65              2/1/06
10,000 shares @ 23.625              2/1/07
</TABLE><PAGE>

                                                                     EXHIBIT 4.1

                          MISSION RESOURCES CORPORATION

                                  $130,000,000

                          9 7/8% SENIOR NOTES DUE 2011

                               PURCHASE AGREEMENT

                                                                   April 1, 2004

Guggenheim Capital Markets, LLC
135 East 57th Street
9th Floor
New York, NY 10022

Ladies and Gentlemen:

                  Mission Resources Corporation, a Delaware corporation, (the
"COMPANY"), proposes to issue and sell $130,000,000 aggregate principal amount
of its 9 7/8% Senior Notes due 2011 (the "NOTES" and, together with the
Guarantees (as defined below), the "SECURITIES"). The Securities will be issued
pursuant to an Indenture to be dated as of April 8, 2004 (the "INDENTURE")
between the Company, the subsidiaries of the Company listed on SCHEDULE 1 hereto
(each a "GUARANTOR" and together, the "GUARANTORS") and The Bank of New York, as
trustee (the "Trustee"). The Notes will be guaranteed by a guarantee (each, a
"GUARANTEE", and, collectively with the Guarantees of each of the other
Guarantors, the "GUARANTEES") of each of the Guarantors. The Company hereby
confirms its agreement with Guggenheim Capital Markets, LLC ("GUGGENHEIM") and
the other initial purchasers named on SCHEDULE 2 hereto, each an "INITIAL
PURCHASER" and collectively, the "INITIAL PURCHASERS") concerning the purchase
of the Securities from the Company by the Initial Purchasers. Capitalized terms
used but not defined herein shall have the meanings given to such terms in the
Offering Memorandum (as defined below).

                  The Securities will be offered and sold to the Initial
Purchasers without being registered under the Securities Act of 1933, as amended
(the "SECURITIES ACT"), in reliance upon an exemption therefrom. The Company
will prepare a final offering memorandum dated the date hereof (the "OFFERING
MEMORANDUM") setting forth information concerning the Company and the
Securities. Copies of the Offering Memorandum will be delivered by the Company
to the Initial Purchasers pursuant to the terms of this Agreement. Any
references herein to the Offering Memorandum shall be deemed to include any
information incorporated by reference therein and all amendments and supplements
thereto, unless otherwise noted. The Company hereby confirms that it has
authorized the use of the Offering Memorandum in connection with the offering
and resale of the Securities by the Initial Purchasers in accordance with
Section 2.

                  Holders of the Securities (including the Initial Purchasers
and their direct and indirect transferees) will be entitled to the benefits of
an Exchange and Registration Rights Agreement, substantially in the form
attached hereto as ANNEX A (the "REGISTRATION RIGHTS

<PAGE>

AGREEMENT"), pursuant to which the Company will agree to file with the
Securities and Exchange Commission (the "COMMISSION") a registration statement
under the Securities Act (the "EXCHANGE OFFER REGISTRATION STATEMENT")
registering an issue of 9 7/8% Senior Notes due 2011 (the "Exchange Notes") of
the Company and guarantees of such 9 7/8% Senior Notes due 2011 by each of the
Guarantors (the "Exchange Guarantees," and together with the Exchange Notes, the
"EXCHANGE SECURITIES") that are identical in all material respects to the
Securities (except that the Exchange Securities will not contain terms with
respect to transfer restrictions) and, under certain circumstances, a shelf
registration statement pursuant to Rule 415 under the Securities Act (the "SHELF
REGISTRATION STATEMENT").

                  1.       Representations, Warranties and Agreements of the
Company and the Guarantors. The Company and the Guarantors jointly and severally
represent and warrant to, and agree with, the several Initial Purchasers on and
as of the date hereof and the Closing Date (as defined in Section 3) that:

                  (a) The Offering Memorandum, as of its date, did not, and on
         the Closing Date the Offering Memorandum will not, contain any untrue
         statement of a material fact or omit to state a material fact required
         to be stated therein or necessary in order to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading; provided, however, that the Company and the Guarantors
         make no representation or warranty as to information contained in or
         omitted from the Offering Memorandum in reliance upon and in conformity
         with written information relating to the Initial Purchasers furnished
         to the Company by or on behalf of any Initial Purchaser specifically
         for use therein as specified in Section 16 hereof (the "INITIAL
         PURCHASERS' INFORMATION").

                  (b) The Offering Memorandum incorporates by reference the most
         recent Annual Report of the Company on Form 10-K filed with the
         Commission and each Quarterly Report of the Company on Form 10-Q and
         each Current Report of the Company on Form 8-K filed with the
         Commission since the end of the fiscal year to which such Annual Report
         relates. The documents incorporated or deemed to be incorporated by
         reference in the Offering Memorandum at the time they were or hereafter
         are filed with the Commission complied and will comply in all material
         respects with the requirements of the 1934 Act and the rules and
         regulations of the Commission thereunder (the "1934 ACT REGULATIONS"),
         and when read together with the other information in the Offering
         Memorandum, at the time the Offering Memorandum was issued and at
         Closing Date, did not and will not include an untrue statement of a
         material fact or omit to state a material fact required to be stated
         therein or necessary to make the statements therein not misleading.

                  (c) The Offering Memorandum, as of its date, contains all of
         the information that, if requested by a prospective purchaser of the
         Securities, would be required to be provided to such prospective
         purchaser pursuant to Rule 144A(d)(4) under the Securities Act.

                  (d) Assuming the accuracy of the representations and
         warranties of the Initial Purchasers contained in Section 2 and their
         compliance with the agreements set forth

                                        2

<PAGE>

         therein, it is not necessary, in connection with the issuance and sale
         of the Securities to the Initial Purchasers and the offer, resale and
         delivery of the Securities by the Initial Purchasers in the manner
         contemplated by this Agreement and the Offering Memorandum, to register
         the Securities under the Securities Act or to qualify the Indenture
         under the Trust Indenture Act of 1939, as amended (the "TRUST INDENTURE
         ACT").

                  (e) The Company has been duly organized and is a validly
         existing corporation in good standing under the laws of the State of
         Delaware, is duly qualified to do business and is in good standing as a
         foreign entity in each jurisdiction in which its ownership or lease of
         property or the conduct of its business requires such qualification,
         and has all power and authority necessary to own or hold its properties
         and to conduct the business in which it is engaged, except where the
         failure to so qualify or have such power or authority would not,
         singularly or in the aggregate, have a material adverse effect on the
         Company's or any Guarantor's ability to perform its obligations under
         the Indenture, the Notes, the Guarantees or the Registration Rights
         Agreement, as applicable, or on the condition, financial or otherwise,
         or in the earnings, business affairs, management or business prospects
         of the Company and its subsidiaries, considered as one enterprise,
         whether or not arising in the ordinary course of business (a "MATERIAL
         ADVERSE EFFECT"); all of the outstanding shares of capital stock of the
         Company have been duly and validly authorized and issued and are fully
         paid and non-assessable; and none of the outstanding shares of capital
         stock of the Company was issued in violation of any preemptive or
         similar rights of any securityholder of the Company.

                  (f) Each "significant subsidiary" of the Company (as such term
         is defined in Rule 1-02 of Regulation S-X) and each Guarantor (each, a
         "DESIGNATED SUBSIDIARY" and collectively, the "DESIGNATED
         SUBSIDIARIES") has been duly organized and is validly existing in good
         standing under the laws of the jurisdiction of its formation, has power
         and authority to own, lease and operate its properties and to conduct
         its business as described in the Offering Memorandum and is duly
         qualified as a foreign corporation to transact business and is in good
         standing in each jurisdiction in which such qualification is required,
         whether by reason of the ownership or leasing of property or the
         conduct of business, except where the failure so to qualify or to be in
         good standing would not result in a Material Adverse Effect; except as
         otherwise disclosed in the Offering Memorandum, all of the issued and
         outstanding capital stock or member interests or partnership interests
         of each Designated Subsidiary has been duly authorized and validly
         issued, are fully paid and non-assessable and is owned by the Company,
         directly or through subsidiaries, free and clear of any security
         interest, mortgage, pledge, lien, encumbrance, claim, equity,
         restriction upon voting or transfer; none of the outstanding shares of
         capital stock or member interests or partnership interests of the
         Designated Subsidiaries was issued in violation of any preemptive or
         similar rights of any securityholder of such Designated Subsidiary. The
         other subsidiaries of the Company other than the Designated
         Subsidiaries, considered in the aggregate as a single subsidiary, do
         not constitute a "significant subsidiary" as defined in Rule 1-02 of
         Regulation S-X.

                  (g) The Company will, on the Closing Date, have an authorized
         capitalization of 65,000,000 shares, of which 60,000,000 are shares of
         common stock, par value $0.01 per

                                       3

<PAGE>

         share, and 5,000,000 are shares of preferred stock, par value $0.01 per
         share. As of March 30, 2004, 40,267,636 shares of common stock were
         issued and outstanding, 389,000 shares of common stock were held as
         treasury shares, and 7,225,000 shares of common stock were reserved for
         issuance under our stock incentive plans. As of March 30, 2004, there
         were no shares of our preferred stock outstanding.

                  (h) The Company and each of the Guarantors has full right,
         power and authority to execute and deliver this Agreement, the
         Indenture, the Registration Rights Agreement, the Escrow Agreement and
         the Notes and Guarantees (collectively, the "TRANSACTION DOCUMENTS"),
         as applicable, and to perform its obligations hereunder and thereunder;
         and all corporate action required to be taken for the due and proper
         authorization, execution and delivery of each of the Transaction
         Documents and the consummation of the transactions contemplated thereby
         will have been duly and validly taken by each of the Company and the
         Guarantors, as applicable.

                  (i) This Agreement has been duly authorized, executed and
         delivered by the Company and each of the Guarantors and constitutes a
         valid and legally binding agreement of the Company and each of the
         Guarantors.

                  (j) The Registration Rights Agreement has been duly authorized
         by the Company and each of the Guarantors and, when duly executed and
         delivered in accordance with its terms by each of the parties thereto,
         will constitute a valid and legally binding agreement of the Company
         and each of the Guarantors enforceable against the Company and each of
         the Guarantors in accordance with its terms, except to the extent that
         such enforceability may be limited by applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and other
         similar laws affecting creditors' rights generally and by general
         equitable principles (whether considered in a proceeding in equity or
         at law) and except as rights to indemnification and contribution set
         forth therein may be limited by applicable law.

                  (k) The Indenture has been duly authorized by the Company and
         each of the Guarantors and, when duly executed and delivered in
         accordance with its terms by each of the parties thereto, will
         constitute a valid and legally binding agreement of the Company and
         each of the Guarantors enforceable against the Company and each of the
         Guarantors in accordance with its terms, except to the extent that such
         enforceability may be limited by applicable bankruptcy, insolvency,
         fraudulent conveyance, reorganization, moratorium and other similar
         laws affecting creditors' rights generally and by general equitable
         principles (whether considered in a proceeding in equity or at law). On
         the Closing Date, the Indenture will conform in all material respects
         to the requirements of the Trust Indenture Act and the rules and
         regulations of the Commission applicable to an indenture which is
         qualified thereunder.

                  (l) The Notes have been duly authorized by the Company and,
         when duly executed, authenticated, issued and delivered as provided in
         the Indenture (assuming the Indenture is the valid and legally binding
         obligation of the Trustee and due authentication of the Securities by
         the Trustee) and paid for as provided herein, will be duly and validly
         issued and outstanding and will constitute valid and legally binding
         obligations of the

                                       4

<PAGE>

         Company, entitled to the benefits of the Indenture and enforceable
         against the Company, in accordance with their terms, except to the
         extent that such enforceability may be limited by applicable
         bankruptcy, insolvency, fraudulent conveyance, reorganization,
         moratorium and other similar laws affecting creditors' rights generally
         and by general equitable principles (whether considered in a proceeding
         in equity or at law).

                  (m) The Guarantees have been duly authorized by each of the
         Guarantors and, when the Guarantees have been duly executed,
         authenticated, issued and delivered as provided in the Indenture and
         when the Securities have been paid for as provided herein (assuming due
         authorization, execution and delivery of the Indenture by the Trustee
         and due authentication of the Securities by the Trustee), will
         constitute valid and legally binding obligations of the related
         Guarantor, enforceable against each such Guarantor in accordance with
         their terms, subject to bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and other similar laws affecting creditors'
         rights generally and to general equitable principles (whether
         considered in a proceeding in equity or at law).

                  (n) The Exchange Notes have been duly authorized by the
         Company and the related Exchange Guarantees have been duly authorized
         by each of the Guarantors and, when duly executed, authenticated,
         issued and delivered as provided in the Indenture and the Registration
         Rights Agreement (assuming the Indenture is the valid and legally
         binding obligation of the Trustee) the Exchange Securities will
         constitute a valid and legally binding obligation of the Company, as
         issuer of the Notes, and each of the Guarantors, as guarantors,
         enforceable against the Company, as issuer of the Notes, and each of
         the Guarantors, as guarantors, in accordance with its terms, except to
         the extent that such enforceability may be limited by applicable
         bankruptcy, insolvency, fraudulent conveyance, reorganization,
         moratorium and other similar laws affecting creditors' rights generally
         and by general equitable principles (whether considered in a proceeding
         in equity or at law).

                  (o) The Escrow Agreement has been duly authorized by the
         Company and, when duly executed and delivered in accordance with its
         terms by each of the parties thereto, will constitute a valid and
         legally binding agreement of the Company enforceable against the
         Company in accordance with its terms, except to the extent that such
         enforceability may be limited by applicable bankruptcy, insolvency,
         fraudulent conveyance, reorganization, moratorium and other similar
         laws affecting creditors' rights generally and by general equitable
         principles (whether considered in a proceeding in equity or at law) and
         except as rights to indemnification and contribution set forth therein
         may be limited by applicable law.

                  (p) Each Transaction Document conforms in all material
         respects to the description thereof contained in the Offering
         Memorandum.

                  (q) The execution, delivery and performance by the Company and
         each of the Guarantors of each of the Transaction Documents to which it
         is a party, the issuance, authentication, sale and delivery of the
         Securities and performance the Company and each of the Guarantors with
         the terms thereof and the consummation of the transactions

                                       5

<PAGE>

         contemplated by the Transaction Documents will not conflict with or
         result in a breach or violation of any of the terms or provisions of,
         or constitute a default under, or result in the creation or imposition
         of any lien, charge or encumbrance upon any property or assets of the
         Company or any of its subsidiaries pursuant to, any material indenture,
         mortgage, deed of trust, loan agreement or other material agreement or
         instrument to which the Company or any of its subsidiaries is a party
         or by which the Company or any of its subsidiaries is bound or to which
         any of the property or assets of the Company or any of its subsidiaries
         is subject, nor will such actions result in any violation of the
         provisions of the charter or by-laws of the Company or any of its
         subsidiaries or any statute or any judgment, order, decree, rule or
         regulation of any court or arbitrator or governmental agency or body
         having jurisdiction over the Company or any of its subsidiaries or any
         of their properties or assets; and no consent, approval, authorization
         or order of, or filing or registration with, any such court or
         arbitrator or governmental agency or body under any such statute,
         judgment, order, decree, rule or regulation is required for the
         execution, delivery and performance by the Company and each of the
         Guarantors of each of the Transaction Documents to which each is a
         party, the issuance, authentication, sale and delivery of the
         Securities and compliance by the Company and each of the Guarantors
         with the terms thereof and the consummation of the transactions
         contemplated by the Transaction Documents, except for such consents,
         approvals, authorizations, filings, registrations or qualifications
         which shall have been obtained or made prior to the Closing Date and as
         may be required to be obtained or made under the Securities Act, the
         Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT"), and
         applicable state securities laws as provided in the Registration Rights
         Agreement.

                  (r) KPMG LLP is the independent certified public accountant
         with respect to the Company and its subsidiaries (i) as required by the
         Securities Act and the rules and regulations of the Commission
         thereunder and (ii) within the meaning of Rule 101 of the Code of
         Professional Conduct of the American Institute of Certified Public
         Accountants ("AICPA") and its interpretations and rulings thereunder.
         The historical financial statements (including the related notes)
         contained in the Offering Memorandum comply as to form in all material
         respects with the requirements applicable to a registration statement
         on Form S-1 under the Securities Act (except that certain supporting
         schedules are omitted); such financial statements have been prepared in
         accordance with generally accepted accounting principles consistently
         applied throughout the periods covered thereby (except as otherwise
         stated therein), and fairly present in all material respects the
         financial position of the entities purported to be covered thereby at
         the respective dates indicated and the results of their operations and
         their cash flows for the respective periods indicated; and the
         financial information contained in or incorporated by reference into
         the Offering Memorandum under the headings and "-Summary Historical
         Financial Data", "--Ratio of Earnings to Fixed Charges" "--Summary
         Operating Data" and "Capitalization", and in the most recent Annual
         Report of the Company on Form 10-K, "Management's Discussion and
         Analysis of Financial Condition and Results of Operations" are derived
         from the accounting records of the Company and its subsidiaries and
         fairly present in all material respects the information purported to be
         shown thereby. The pro forma financial information contained in the
         Offering Memorandum has been prepared on a basis consistent with the
         historical financial statements contained in the Offering Memorandum
         (except for the pro forma adjustments specified therein), includes

                                       6

<PAGE>

         all material adjustments to the historical financial information
         required by Rule 11-02 of Regulation S-X under the Securities Act and
         the Exchange Act to reflect the transactions described in the Offering
         Memorandum, gives effect to assumptions made on a reasonable basis and
         fairly presents in all material respects the historical and proposed
         transactions contemplated by the Offering Memorandum and the
         Transaction Documents. The other historical financial and statistical
         information and data included in the Offering Memorandum are, in all
         material respects, fairly presented.

                  (s) Except as otherwise disclosed in the Offering Memorandum,
         there are no legal or governmental proceedings pending to which the
         Company (including any predecessor entity) or any of its subsidiaries
         is a party or of which any property or assets of the Company or any of
         its subsidiaries is the subject which, singularly or in the aggregate,
         if determined adversely to the Company or any of its subsidiaries,
         could reasonably be expected to have a Material Adverse Effect, and to
         the best knowledge of the Company and the Guarantors, no such
         proceedings are threatened or contemplated by governmental authorities
         or threatened by others.

                  (t) No action has been taken and no statute, rule, regulation
         or order has been enacted, adopted or issued by any governmental agency
         or body that prevents the issuance of the Securities or suspends the
         sale of the Securities in any jurisdiction; no injunction, restraining
         order or order of any nature by any federal or state court of competent
         jurisdiction has been issued with respect to the Company or any of its
         subsidiaries that would prevent or suspend the issuance or sale of the
         Securities or the use of the Offering Memorandum in any jurisdiction;
         no action, suit or proceeding is pending against or, to the best
         knowledge of the Company, threatened against or affecting the Company
         or any of its subsidiaries before any court or arbitrator or any
         governmental agency, body or official, domestic or foreign, that could
         reasonably be expected to interfere with or adversely affect the
         issuance of the Securities or in any manner draw into question the
         validity or enforceability of any of the Transaction Documents or any
         action taken or to be taken pursuant thereto; and the Company has
         complied with any and all requests by any securities authority in any
         jurisdiction for additional information to be included in the Offering
         Memorandum.

                  (u) Neither the Company nor any of its subsidiaries is (i) in
         violation of its charter or bylaws (or other comparable organizational
         documents), (ii) in default, and no event has occurred which, with
         notice or lapse of time or both, would constitute such a default, in
         the due performance or observance of any term, covenant or condition
         contained in any material indenture, mortgage, deed of trust, loan
         agreement or other material agreement or instrument to which it is a
         party or by which it is bound or to which any of its property or assets
         is subject or (iii) in violation of any law, ordinance, governmental
         rule, regulation or court decree to which it or its property or assets
         may be subject, except in the case of items (ii) and (iii) where such
         default, occurrence or violation would not have a Material Adverse
         Effect.

                  (v) No filing with, or authorization, approval, consent,
         license, order, registration, qualification or decree of, any court or
         governmental authority or agency is necessary or required for the
         performance by the Company or any Guarantor of its obligations

                                       7

<PAGE>

         hereunder, in connection with the offering, issuance or sale of the
         Securities hereunder or the consummation of the transactions
         contemplated by this Agreement or the Registration Rights Agreement or
         for the due execution, delivery or performance of the Indenture by the
         Company or any Guarantor, except (A) with respect to the performance by
         the Company of the Registration Rights Agreement, the registration with
         the Commission of the Securities under the Shelf Registration Statement
         and/or the registration of the Exchange Offer with the Commission, and,
         in each case, registration or qualification under applicable securities
         or "Blue Sky" laws of the various states, (B) those required in
         connection with the qualification of the Indenture under the 1939 Act,
         (C) those required in connection with arranging for the Securities to
         be designated eligible for trading in the Private Offerings, Resales
         and Trading through Automated Linkages ("PORTAL") Market or for the
         Securities to be eligible for clearance and settlement through The
         Depository Trust Company ("DTC") and (D) such as have already been
         obtained.

                  (w) The Company and each of its subsidiaries possess all
         licenses, certificates, authorizations and permits issued by, and have
         made all declarations and filings with, the appropriate federal, state
         or foreign regulatory agencies or bodies that are necessary or
         desirable for the ownership of their respective properties or the
         conduct of their respective businesses as described in the Offering
         Memorandum, except where the failure to possess or make the same would
         not, singularly or in the aggregate, have a Material Adverse Effect,
         and neither the Company nor any of its subsidiaries has received
         notification of any revocation or modification of any such license,
         certificate, authorization or permit or has any reason to believe that
         any such license, certificate, authorization or permit will not be
         renewed in the ordinary course.

                  (x) The Company and each of its subsidiaries have filed all
         federal, state, local and foreign income and franchise tax returns
         required to be filed through the date hereof and have paid all taxes
         due thereon other than those being contested in good faith and for
         which reserves have been provided in accordance with generally accepted
         accounting principles and those currently payable without penalty or
         interest or the nonpayment of which would not have a Material Adverse
         Effect, and no tax deficiency has been determined adversely to the
         Company or any of its subsidiaries that has had (nor does the Company
         or any of its subsidiaries have any knowledge of any tax deficiency
         that, if determined adversely to the Company or any of its
         subsidiaries, could reasonably be expected to have) a Material Adverse
         Effect.

                  (y) Neither the Company nor any of its subsidiaries is an
         "investment company" or a company "controlled by" an investment company
         within the meaning of the Investment Company Act of 1940, as amended
         (the "INVESTMENT COMPANY ACT"), and the rules and regulations of the
         Commission thereunder or a "holding company" or a "subsidiary company"
         of a holding company or an "affiliate" thereof within the meaning of
         the Public Utility Holding Company Act of 1935, as amended.

                  (z) The Company is subject to the reporting requirements of
         Section 13 or Section 15(d) of the Exchange Act.

                                       8

<PAGE>

                  (aa) The Company and each of its subsidiaries maintain a
         system of internal accounting controls sufficient to provide reasonable
         assurance that (i) transactions are executed in accordance with
         management's general or specific authorizations; (ii) transactions are
         recorded as necessary to permit preparation of financial statements in
         conformity with generally accepted accounting principles and to
         maintain asset accountability; (iii) access to assets is permitted only
         in accordance with management's general or specific authorization; and
         (iv) the recorded accountability for assets is compared with the
         existing assets at reasonable intervals and appropriate action is taken
         with respect to any differences.

                  (bb) Except as otherwise disclosed in the Offering Memorandum,
         the Company and each of its subsidiaries have insurance covering their
         respective properties, operations, personnel and businesses, which
         insurance is in amounts and insures against such losses and risks as
         are standard in the oil and gas industry for similarly situated
         companies. Neither the Company nor any of its subsidiaries has received
         notice from any insurer or agent of such insurer that capital
         improvements or other expenditures are required or necessary to be made
         in order to continue such insurance.

                  (cc) Neither the Company nor any affiliate of the Company has
         taken, nor will the Company or any affiliate take, directly or
         indirectly, any action which is designed to or which has constituted or
         which would be expected to cause or result in stabilization or
         manipulation of the price of any security of the Company to facilitate
         the sale or resale of the Securities.

                  (dd) The Company and each of its subsidiaries own or possess
         adequate rights to use all material patents, patent applications,
         trademarks, service marks, trade names, trademark registrations,
         service mark registrations, copyrights, licenses and know-how
         (including trade secrets and other unpatented and/or unpatentable
         proprietary or confidential information, systems or procedures)
         necessary for the conduct of their respective businesses; and, to the
         knowledge of the Company, the conduct of their respective businesses
         will not conflict in any material respect with, and the Company and its
         subsidiaries have not received any notice of any claim of conflict
         with, any such rights of others.

                  (ee) Except as otherwise disclosed in the Offering Memorandum,
         the Company and each of its subsidiaries have good and marketable title
         in fee simple to, or have valid rights to lease or otherwise use, all
         items of real and personal property which are material to the business
         of the Company and its subsidiaries, in each case free and clear of all
         liens, encumbrances, claims and defects and imperfections of title
         except such as do not materially interfere with the use made and
         proposed to be made of such property by the Company and its
         subsidiaries or could not reasonably be expected to have a Material
         Adverse Effect.

                  (ff) No labor disturbance by or dispute with the employees of
         the Company or any of its subsidiaries exists or, to the knowledge of
         the Company, is contemplated or threatened.

                                       9

<PAGE>

                  (gg) No "prohibited transaction" (as defined in Section 406 of
         the Employee Retirement Income Security Act of 1974, as amended,
         including the regulations and published interpretations thereunder
         ("ERISA"), or Section 4975 of the Internal Revenue Code of 1986, as
         amended from time to time (the "CODE")) or "accumulated funding
         deficiency" (as defined in Section 302 of ERISA) or any of the events
         set forth in Section 4043(b) of ERISA (other than events with respect
         to which the 30-day notice requirement under Section 4043 of ERISA has
         been waived) has occurred with respect to any employee benefit plan of
         the Company or any of its subsidiaries which could reasonably be
         expected to have a Material Adverse Effect; each such employee benefit
         plan is in compliance in all material respects with applicable law,
         including ERISA and the Code; the Company and each of its subsidiaries
         have not incurred and do not expect to incur liability under Title IV
         of ERISA with respect to the termination of, or withdrawal from, any
         pension plan for which the Company or any of its subsidiaries would
         have any liability; and each such pension plan that is intended to be
         qualified under Section 401(a) of the Code is so qualified in all
         material respects and nothing has occurred, whether by action or by
         failure to act, which could reasonably be expected to cause the loss of
         such qualification.

                  (hh) The Company and its subsidiaries are (i) in material
         compliance with any and all applicable foreign, federal, state and
         local laws and regulations relating to the protection of human health
         and safety, the environment or hazardous or toxic substances or wastes,
         pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii) have received
         and are in material compliance with all permits, licenses or other
         approvals required of them under applicable Environmental Laws to
         conduct their respective businesses and (iii) have not received notice
         of any actual or potential liability for (x) any actual or alleged
         violation of Environmental Laws, or (y) investigation or any other
         action (including, but not limited to, remediation) in response to, or
         personal injury (including death) or property damage in connection
         with, any actual or alleged disposal or release of hazardous or toxic
         substances or wastes, pollutants or contaminants, except where such
         notice has been resolved or is no longer outstanding or except where
         the actual or potential liability is not reasonably expected to have a
         Material Adverse Effect. Neither the Company nor any of its
         subsidiaries has been named as a "potentially responsible party" under
         the Comprehensive Environmental Response, Compensation, and Liability
         Act of 1980, 42 U.S.C. Sections 9601 et seq., as amended. The Company
         and its subsidiaries have not entered into any agreement, and are not
         subject to any order, pursuant to which they currently have any ongoing
         obligations to investigate or take any other action (including, but not
         limited to, remediation) in response to any disposal or release of
         hazardous or toxic substances or wastes, pollutants or contaminants.

                  (ii) Neither the Company nor any of its subsidiaries nor, to
         the best knowledge of the Company, any director, officer, agent,
         employee or other person associated with or acting on behalf of the
         Company or any of its subsidiaries, (A) has used any corporate funds
         for any unlawful contribution, gift, entertainment or other unlawful
         expense relating to political activity, made any direct or indirect
         unlawful payment to any foreign or domestic government official or
         employee from corporate funds, (B) violated or is in violation of any
         provisions of the Foreign Corrupt Practices Act of 1977, or (C) made
         any bribe, rebate, payoff, influence payment, kickback or other
         unlawful payment.

                                       10

<PAGE>

                  (jj) Neither the Company nor any of its respective
         subsidiaries owns any "margin securities" as that term is defined in
         Regulations T and U of the Board of Governors of the Federal Reserve
         System (the "FEDERAL RESERVE BOARD"), and the offer, issuance, sale of
         the Securities and the application of the net proceeds therefrom will
         not violate Regulations T, U or X of the Federal Reserve Board.

                  (kk) Except as otherwise disclosed in the Offering Memorandum,
         neither the Company nor any of its subsidiaries is a party to any
         contract, agreement or understanding with any person that would give
         rise to a valid claim against the Company or the Initial Purchasers for
         a brokerage commission, finder's fee or like payment in connection with
         the offering and sale of the Securities.

                  (ll) The Securities satisfy the eligibility requirements of
         Rule 144A(d)(3) under the Securities Act.

                  (mm) Except with respect to the Initial Purchasers, neither
         the Company nor any of its affiliates has, directly or through any
         agent, sold, offered for sale, solicited offers to buy or otherwise
         negotiated in respect of, any security (as such term is defined in the
         Securities Act), which is or will be integrated with the sale of the
         Securities in a manner that would require registration of the
         Securities under the Securities Act.

                  (nn) Except with respect to the Initial Purchasers, neither
         the Company nor any of its affiliates or any other person acting on its
         or their behalf has engaged, in connection with the offering of the
         Securities, in any form of general solicitation or general advertising
         within the meaning of Rule 502(c) under the Securities Act.

                  (oo) Neither the Company nor any of its affiliates has taken
         and none of them will take, directly or indirectly, any action
         prohibited by Regulation M under the Exchange Act in connection with
         the offering of the Securities.

                  (pp) Since the date as of which information is given in the
         Offering Memorandum (exclusive of amendments or supplements thereto),
         except as otherwise stated therein, (i) there has been no material
         adverse change or any development involving a prospective material
         adverse change in the condition, financial or otherwise, or in the
         earnings, business affairs, management or business prospects of the
         Company and its subsidiaries, considered as one enterprise, whether or
         not arising in the ordinary course of business, (ii) neither the
         Company nor any of its subsidiaries has incurred any material liability
         or obligation, direct or contingent, other than in the ordinary course
         of business, (iii) neither the Company nor any of its subsidiaries has
         entered into any material transaction other than in the ordinary course
         of business and (iv) there has not been any change in the capital stock
         or long-term debt of the Company or any of its subsidiaries, or any
         dividend or distribution of any kind declared, paid or made by the
         Company on any class of its capital stock, or any redemption in respect
         thereof.

                  (qq) Netherland Sewell & Associates, Inc. is an independent
         petroleum engineering firm with respect to the Company.

                                       11

<PAGE>

                  2.       Purchase and Resale of the Securities. On the basis
of the representations, warranties and agreements contained herein, and subject
to the terms and conditions set forth herein, the Company and each of the
Guarantors agrees to issue and sell to each of the Initial Purchasers, severally
and not jointly, and each of the Initial Purchasers, severally and not jointly,
agrees to purchase from the Company and the Guarantors, the principal amount of
Securities set forth opposite the name of such Initial Purchaser on Schedule 2
hereto at a purchase price equal to 97.00% of the principal amount thereof. The
Company and the Guarantors shall not be obligated to deliver any of the
Securities except upon payment for all of the Securities to be purchased as
provided herein.

                  (a) The Initial Purchasers have advised the Company that they
         propose to offer the Securities for resale upon the terms and subject
         to the conditions set forth herein and in the Offering Memorandum. Each
         Initial Purchaser, severally and not jointly, represents, warrants to
         and agrees with the Company that: (i) it is purchasing the Securities
         pursuant to a private sale exempt from registration under the
         Securities Act, (ii) it has not solicited offers for, or offered or
         sold, and will not solicit offers for, or offer or sell, the Securities
         by means of any form of general solicitation or general advertising
         within the meaning of Rule 502(c) of Regulation D under the Securities
         Act ("REGULATION D") or in any manner involving a public offering
         within the meaning of Section 4(2) of the Securities Act, and (iii) it
         has solicited and will solicit offers for the Securities only from, and
         has offered or sold and will offer, sell or deliver the Securities, as
         part of their initial offering, only to persons whom it reasonably
         believes to be qualified institutional buyers ("QUALIFIED INSTITUTIONAL
         BUYERS"), as defined in Rule 144A under the Securities Act ("RULE
         144A"), or if any such person is buying for one or more institutional
         accounts for which such person is acting as fiduciary or agent, only
         when such person has represented to it that each such account is a
         Qualified Institutional Buyer to whom notice has been given that such
         sale or delivery is being made in reliance on Rule 144A and in each
         case, in transactions in accordance with Rule 144A.

                  (b) Each Initial Purchaser will take reasonable steps to
         inform persons acquiring Securities from such Initial Purchaser that
         the Securities (i) have not been and will not be registered under the
         Securities Act, (ii) are being sold to them without registration under
         the Securities Act in reliance on Rule 144A or in accordance with
         another exemption from registration under the Securities Act, as the
         case may be, and (iii) may not be offered, sold or otherwise
         transferred except (A) to the Company, or (B) in accordance with (x)
         Rule 144A to a person whom the seller reasonably believes is a
         Qualified Institutional Buyer that is purchasing such Securities for
         its own account or for the account of a Qualified Institutional Buyer
         to whom notice is given that the offer, sale or transfer is being made
         in reliance on Rule 144A or (y) pursuant to another available exemption
         from registration under the Securities Act.

                  (c) Each Initial Purchaser, severally and not jointly, agrees
         that, prior to or simultaneously with the confirmation of sale by such
         initial Purchaser to any purchaser of any of the securities purchased
         by such Initial Purchaser from the Company pursuant hereto, such
         Initial Purchaser shall furnish to that purchaser a copy of the
         Offering Memorandum (and any amendment or supplement thereto that the
         Company shall have furnished to such Initial Purchaser prior to the
         date of such confirmation of sale). In

                                       12

<PAGE>

         addition to the foregoing, each Initial Purchaser acknowledges and
         agrees that the Company and, for purposes of the opinions to be
         delivered to the Initial Purchasers pursuant to Section 5(d), (e) and
         (f), counsel for the Company and for the Initial Purchasers,
         respectively, may rely upon the accuracy of the representations and
         warranties of the Initial Purchasers and their compliance with their
         agreements contained in this Section 2, and each Initial Purchaser
         hereby consents to such reliance.

                  (d) The Company acknowledges and agrees that the Initial
         Purchasers may sell securities to any affiliate of an Initial Purchaser
         and that any such affiliate may sell Securities purchased by it to an
         Initial Purchaser.

                  3.       Delivery of and Payment for the Securities. (a)
Delivery of and payment for the Securities shall be made at the offices of
Sidley Austin Brown & Wood LLP, 787 Seventh Ave., New York, New York, or at such
other place as shall be agreed upon by the Initial Purchasers and the Company,
at 10:00 A.M., New York City time, on April 8, 2004, or at such other time or
date, not later than seven full business days thereafter, as shall be agreed
upon by the Initial Purchasers and the Company (such date and time of payment
and delivery being referred to herein as the "CLOSING DATE").

                  (b) On the Closing Date, payment of the purchase price for the
         Securities shall be made to the Company by wire or book-entry transfer
         of same-day funds to such account or accounts as the Company shall
         specify prior to the Closing Date or by such other means as the parties
         hereto shall agree prior to the Closing Date against delivery to the
         Initial Purchasers of the certificates evidencing the Securities. Time
         shall be of the essence, and delivery at the time and place specified
         pursuant to this Agreement is a further condition of the obligations of
         the Initial Purchasers hereunder. Upon delivery, the Securities shall
         be in global form, registered in such names and in such denominations
         as Guggenheim on behalf of the Initial Purchasers shall have requested
         in writing not less than two full business days prior to the Closing
         Date. The Company agrees to make one or more global certificates
         evidencing the Securities available for inspection by Guggenheim on
         behalf of the Initial Purchasers in New York, New York at least 24
         hours prior to the Closing Date.

                  4.       Further Agreements of the Company and the Guarantors.
The Company and each of the Guarantors agrees with each of the Initial
Purchasers:

                  (a) to advise the Initial Purchasers promptly and, if
         requested, confirm such advice in writing, of the happening of any
         event which makes any statement of a material fact made in the Offering
         Memorandum untrue or which requires the making of any additions to or
         changes in the Offering Memorandum (exclusive of any amendments or
         supplements thereto) in order to make the statements therein, in the
         light of the circumstances under which they were made, not misleading;

                  (b) to furnish promptly to each of the Initial Purchasers and
         counsel for the Initial Purchasers, without charge, as many copies of
         the Offering Memorandum (and any amendments or supplements thereto) as
         may be reasonably requested;

                                       13

<PAGE>

                  (c) prior to making any amendment or supplement to the
         Offering Memorandum, to furnish a copy thereof to each of the Initial
         Purchasers and counsel for the Initial Purchasers and not to effect any
         such amendment or supplement to which the Initial Purchasers shall
         reasonably object by notice to the Company after a reasonable period to
         review;

                  (d) if, at any time prior to completion of the resale of the
         Securities by the Initial Purchasers, any event shall occur or
         condition exist as a result of which it is necessary, in the reasonable
         opinion of counsel for the Initial Purchasers or counsel for the
         Company, to amend or supplement the Offering Memorandum in order that
         the Offering Memorandum will not include an untrue statement of a
         material fact or omit to state a material fact necessary in order to
         make the statements therein, in the light of the circumstances existing
         at the time it is delivered to a purchaser, not misleading, or if it is
         necessary to amend or supplement the Offering Memorandum to comply with
         applicable law, to promptly prepare such amendment or supplement as may
         be necessary to correct such untrue statement or omission or so that
         the Offering Memorandum, as so amended or supplemented, will comply
         with applicable law;

                  (e) that it will not and will cause its affiliates not to,
         directly or indirectly, solicit any offer to buy, sell or make any
         offer or sale of, or otherwise negotiate in respect of, securities of
         the Company of any class if, as a result of the doctrine of
         "integration" referred to in Rule 502 under the Securities Act, such
         offer or sale would render invalid (for the purpose of (i) the sale of
         the offered Securities by the Company and the Guarantors to the Initial
         Purchasers, (ii) the resale of the offered Securities by the Initial
         Purchasers to subsequent purchasers or (iii) the resale of the offered
         Securities by such subsequent purchasers to others) the exemption from
         the registration requirements of the Securities Act provided by Section
         4(2) thereof or by Rule 144A thereunder or otherwise;

                  (f) for so long as the Securities are outstanding and are
         "restricted securities" within the meaning of Rule 144(a)(3) under the
         Securities Act, to furnish to holders of the Securities and prospective
         purchasers of the Securities designated by such holders, upon request
         of such holders or such prospective purchasers, the information
         required to be delivered pursuant to Rule 144A(d)(4) under the
         Securities Act, unless the Company is then subject to and in compliance
         with Section 13 or 15(d) of the Exchange Act (the foregoing agreement
         being for the benefit of the holders from time to time of the
         Securities and prospective purchasers of the Securities designated by
         such holders);

                  (g) to promptly take from time to time such actions as the
         Initial Purchasers may reasonably request to qualify the Securities for
         offer and sale under the securities or Blue Sky laws of such
         jurisdictions as the Initial Purchasers may designate and to continue
         such qualifications in effect for so long as required for the resale of
         the Securities; and to arrange for the determination of the eligibility
         for investment of the Securities under the laws of such jurisdictions
         as the Initial Purchasers may reasonably request; provided, however,
         that the Company and its subsidiaries shall not be obligated to qualify
         as foreign corporations in any jurisdiction in which they are not so
         qualified or to file a general consent to service of process in any
         jurisdiction;

                                       14

<PAGE>

                  (h) to take all reasonable action necessary to enable Standard
         & Poor's Ratings Services, a division of McGraw Hill, Inc. ("S&P"), and
         Moody's Investors Service Inc. ("MOODY'S") to provide their respective
         credit ratings of the Securities;

                  (i) to assist the Initial Purchasers in arranging for the
         Securities to be designated PORTAL Market securities in accordance with
         the rules and regulations adopted by the National Association of
         Securities Dealers, Inc. ("NASD") relating to trading in the PORTAL
         Market and for the Securities to be eligible for clearance and
         settlement through DTC;

                  (j) until the offering of the Securities is complete, to file
         all documents required to be filed with the Commission pursuant to the
         Exchange Act within the time periods required by the Exchange Act and
         the 1934 Act Regulations;

                  (k) except following the effectiveness of the Exchange Offer
         Registration Statement or the Shelf Registration Statement, as the case
         may be, not to, and to cause its affiliates not to, and not to
         authorize or knowingly permit any person acting on their behalf to,
         solicit any offer to buy or offer to sell the Securities by means of
         any form of general solicitation or general advertising within the
         meaning of Regulation D or in any manner involving a public offering
         within the meaning of Section 4(2) of the Securities Act; and not to
         offer, sell, contract to sell or otherwise dispose of, directly or
         indirectly, any securities under circumstances where such offer, sale,
         contract or disposition would cause the exemption afforded by Section
         4(2) of the Securities Act to cease to be applicable to the offering
         and sale of the Securities as contemplated by this Agreement and the
         Offering Memorandum;

                  (l) except as otherwise disclosed in the Offering Memorandum,
         for a period of 90 days from the date of the Offering Memorandum, not
         to offer for sale, sell, contract to sell or otherwise dispose of,
         directly or indirectly, or file a registration statement for, or
         announce any offer, sale, contract for sale of or other disposition of
         any debt securities issued or guaranteed by the Company or any of its
         subsidiaries (other than the Securities) without the prior written
         consent of the Initial Purchasers;

                  (m) until consummation of the Exchange Offer, without the
         prior written consent of the Initial Purchasers, not to, and not permit
         any of its affiliates (as defined in Rule 144 under the Securities Act)
         to, resell any of the Securities that have been reacquired by them,
         except for Securities purchased by the Company or any of its affiliates
         and resold in a transaction in compliance with the Securities Act;

                  (n) in connection with the offering of the Securities, until
         Guggenheim on behalf of the Initial Purchasers shall have notified the
         Company (which Guggenheim shall do as soon as reasonably practicable)
         of the completion of the distribution of the Securities, not to, and to
         cause its affiliated purchasers (as defined in Regulation M under the
         Exchange Act) not to, either alone or with one or more other persons,
         bid for or purchase, for any account in which it or any of its
         affiliated purchasers has a beneficial interest, any Securities, or
         attempt to induce any person to purchase any Securities; and not to,
         and to cause its affiliated purchasers not to, make bids or purchase
         for the purpose of creating

                                       15

<PAGE>

         actual, or apparent active trading in or of raising the price of the
         Securities; provided, however, that notwithstanding any other provision
         of this Agreement, the initial purchaser shall not be prohibited from
         market-making, stabilization, covering or overallotment transactions as
         contemplated by the Offering Memorandum;

                  (o) in connection with the offering of the Securities, to make
         its officers, employees, independent accountants, independent petroleum
         engineers and legal counsel reasonably available upon request by the
         Initial Purchasers;

                  (p) to furnish to each of the Initial Purchasers on the date
         hereof a copy of the independent accountants' report included in the
         Offering Memorandum signed by the accountants rendering such report;

                  (q) to do and perform all things required to be done and
         performed by it under this Agreement that are within its control prior
         to or after the Closing Date, and to use its reasonable efforts to
         satisfy all conditions precedent on its part to the delivery of the
         Securities;

                  (r) to not take any action prior to the execution and delivery
         of the Indenture which, if taken after such execution and delivery,
         would have violated any of the covenants contained in the Indenture;

                  (s) to not take any action prior to the Closing Date which
         would require the Offering Memorandum to be amended or supplemented
         pursuant to Section 4(d);

                  (t) prior to the Closing Date, not to issue any press release
         or other communication directly or indirectly or hold any press
         conference with respect to the Company, its condition, financial or
         otherwise, or earnings, business affairs or business prospects (except
         for routine oral marketing communications in the ordinary course of
         business and consistent with the past practices of the Company and of
         which the Initial Purchasers are notified), without consulting and
         obtaining the consent of the Initial Purchasers (which consent shall
         not be unreasonably withheld), unless in the judgment of the Company
         and its counsel, and after notification to the Initial Purchasers, such
         press release or communication is required by law; and

                  (u) to apply the net proceeds from the sale of the Securities
         as set forth in the Offering Memorandum under the heading "Use of
         Proceeds".

                  5.       Conditions of Initial Purchasers Obligations. The
respective obligations of the several Initial Purchasers hereunder are subject
to the accuracy, on and as of the date hereof and the Closing Date, of the
representations and warranties of the Company and the Guarantors contained
herein, to the accuracy of the statements of the Company, the Guarantors and
their respective officers made in any certificates delivered pursuant hereto, to
the performance by the Company and the Guarantors of their obligations
hereunder, and to each of the following additional terms and conditions:

                  (a) The Offering Memorandum (and any amendments or supplements
         thereto) shall have been printed and copies distributed to the Initial
         Purchasers as promptly as

                                       16

<PAGE>

         practicable on or following the date of this Agreement or at such other
         date and time as to which the Initial Purchasers may agree; and no stop
         order suspending the sale of the Securities in any jurisdiction shall
         have been issued and no proceedings for the purpose shall have been
         commenced or shall be pending or threatened.

                  (b) None of the Initial Purchasers shall have either
         discovered or disclosed to the Company on or prior to the Closing Date
         that the Offering Memorandum or any amendment or supplement thereto
         contains an untrue statement of a fact which, in the opinion of counsel
         for the Initial Purchasers, is material or omits to state any fact
         which, in the opinion of such counsel is material and is required to be
         stated therein or is necessary to make the statements therein not
         misleading.

                  (c) All corporate proceedings and other legal matters incident
         to the authorization, form and validity of each of the Transaction
         Documents and the Offering Memorandum, and all other legal matters
         relating to the Transaction Documents and the transactions contemplated
         thereby, shall be satisfactory in all material respects to the Initial
         Purchasers, and the Company shall have furnished to the Initial
         Purchasers all documents and information that they or their counsel may
         reasonably request to enable them to pass upon such matters.

                  (d) Porter & Hedges, L.L.P. shall have furnished to the
         Initial Purchasers a written opinion, as counsel to the Company,
         addressed to the Initial Purchasers and dated the Closing Date
         substantially in the form set forth in ANNEX B.

                  (e) Nixon Peabody LLP, shall have furnished to the Initial
         Purchasers a written opinion, as special New York counsel to the
         Company, addressed to the Initial Purchasers and dated the Closing Date
         substantially in the form set forth in ANNEX C.

                  (f) The Initial Purchasers shall have received from Sidley
         Austin Brown & Wood LLP, counsel for the Initial Purchasers, such
         opinion or opinions, dated the Closing Date, with respect to such
         matters as the Initial Purchasers may reasonably require, and the
         Company shall have furnished to such counsel such documents and
         information as they may request for the purpose of enabling them to
         pass upon such matters.

                  (g) The Company shall have furnished to the Initial Purchasers
         a letter (the "INITIAL COMFORT LETTER") of KPMG LLP, addressed to the
         Initial Purchasers and dated the date hereof, in form and substance
         satisfactory to the Initial Purchasers.

                  (h) The Company shall have furnished to the Initial Purchasers
         a letter (the "BRING-DOWN COMFORT LETTER") of KPMG LLP, addressed to
         the Initial Purchasers and dated the Closing Date in form and substance
         satisfactory to the Initial Purchasers.

                  (i) The Company shall have furnished to the Initial Purchasers
         a certificate, dated the Closing Date, of its chief executive officer
         and its chief financial officer stating that (A) such officers have
         carefully examined the Offering Memorandum, (B) in their opinion, the
         Offering Memorandum, as of its date, did not include any untrue
         statement of a material fact and did not omit to state a material fact
         required to be stated therein or necessary in order to make the
         statements therein, in the light of the circumstances under

                                       17

<PAGE>

         which they were made, not misleading, and since the date of the
         Offering Memorandum, no event has occurred that should have been set
         forth in a supplement or amendment to the Offering Memorandum so that
         the Offering Memorandum (as so amended or supplemented) would not
         include any untrue statement of a material fact and would not omit to
         state a material fact required to be stated therein or necessary in
         order to make the statements therein, in the light of the circumstances
         under which they were made, not misleading and (C) as of the Closing
         Date, the representations and warranties of the Company and the
         Guarantors in this Agreement are true and correct in all material
         respects, the Company and the Guarantors have complied with all
         agreements and satisfied all conditions on their part to be performed
         or satisfied hereunder on or prior to the Closing Date in all material
         respects, and subsequent to the date of the most recent financial
         statements contained in the Offering Memorandum, there has been no
         material adverse change, or any development including a prospective
         change, in the condition, financial or otherwise, or in the earnings,
         business affairs, management or business prospects of the Company and
         its subsidiaries, considered as one enterprise, whether or not arising
         in the ordinary course of business, except as set forth in the Offering
         Memorandum (exclusive of any amendments or supplements thereto).

                  (j) The Initial Purchasers shall have received a counterpart
         of the Registration Rights Agreement that shall have been executed and
         delivered by a duly authorized officer of the Company and of each of
         the Guarantors.

                  (k) The Indenture shall have been duly executed and delivered
         by the Company, each of the Guarantors and the Trustee, and the
         Securities shall have been duly executed and delivered by the Company,
         each of the Guarantors and duly authenticated by the Trustee.

                  (l) The Securities shall have been approved by the NASD for
         trading in the PORTAL Market.

                  (m) If any event shall have occurred that requires the Company
         under Section 4(d) to prepare an amendment or supplement to the
         Offering Memorandum, such amendment or supplement shall have been
         prepared, the Initial Purchasers shall have been given a reasonable
         opportunity to comment thereon, and copies thereof shall have been
         delivered to the Initial Purchasers reasonably in advance of the
         Closing Date.

                  (n) There shall not have occurred any invalidation of Rule
         144A under the Securities Act by any court or any withdrawal or
         proposed withdrawal of any rule or regulation under the Securities Act
         or the Exchange Act by the commission or any amendment or proposed
         amendment thereof by the Commission which in the judgment of the
         Initial Purchasers would materially impair the ability of the Initial
         Purchasers to purchase, hold or effect resales of the Securities
         contemplated hereby.

                  (o) Subsequent to the execution and delivery of this Agreement
         or, if earlier, the dates as of which information is given in the
         Offering Memorandum (exclusive of any amendment or supplement thereto),
         there shall not have been any change in the capital stock or long-term
         debt or any change, or any development involving a prospective

                                       18

<PAGE>

         change, in or affecting the condition, financial or otherwise, or in
         the earnings, business affairs, management or business prospects of the
         Company and its subsidiaries, considered as one enterprise, whether
         arising in the ordinary course of business, the effect of which, in any
         such case described above, is, in the judgment of the Initial
         Purchasers, so material and adverse as to make it impracticable or
         inadvisable to proceed with the sale or delivery of the Securities on
         the terms and in the manner contemplated by this Agreement and the
         Offering Memorandum (exclusive of any amendment or supplement thereto).

                  (p) No action shall have been taken and no statute, rule,
         regulation or order shall have been enacted, adopted or issued by any
         governmental agency or body which would, as of the Closing Date,
         prevent the issuance or sale of the Securities; and no injunction,
         restraining order or order of any other nature by any federal or state
         court of competent jurisdiction shall have been issued as of the
         Closing Date which would prevent the issuance or sale of the
         Securities.

                  (q) Subsequent to the execution and delivery of this Agreement
         (i) no downgrading shall have occurred in the rating accorded the
         Securities or any of the Company's other debt securities or preferred
         stock by a "nationally recognized statistical rating organization", as
         such term is defined by the Commission for purposes of Rule 436(g)(2)
         of the rules and regulations of the Commission under the Securities Act
         and (ii) no such organization shall have publicly announced that it has
         under surveillance or review (other than an announcement with positive
         implications of a possible upgrading), its rating of the Securities or
         any of the Company's or other debt securities or preferred stock.

                  (r) The Company shall have furnished to the Initial Purchasers
         a letter (the "INITIAL RYDER SCOTT LETTER") of Ryder Scott Company
         Petroleum Engineers, addressed to the Initial Purchasers and dated the
         date hereof, in form and substance satisfactory to the Initial
         Purchasers.

                  (s) The Company shall have furnished to the Initial Purchasers
         a letter (the "INITIAL T.J. SMITH LETTER") of T.J. Smith & Company,
         Inc., addressed to the Initial Purchasers and dated the date hereof, in
         form and substance satisfactory to the Initial Purchasers.

                  (t) The Company shall have furnished to the Initial Purchasers
         a letter (the "INITIAL NETHERLAND SEWELL LETTER") of Netherland Sewell
         & Associates, Inc., addressed to the Initial Purchasers and dated the
         date hereof, in form and substance satisfactory to the Initial
         Purchasers.

                  (u) The Company shall have furnished to the Initial Purchasers
         a letter (the "RYDER SCOTT BRING-DOWN LETTER") of Ryder Scott Company
         Petroleum Engineers, addressed to the Initial Purchasers and dated the
         Closing Date confirming in all material respects the conclusions and
         findings set forth in the Initial Ryder Scott Letter.

                                       19

<PAGE>

                  (v) The Company shall have furnished to the Initial Purchasers
         a letter (the "T.J. SMITH BRING-DOWN LETTER") of T.J. Smith & Company,
         Inc., addressed to the Initial Purchasers and dated the Closing Date
         confirming in all material respects the conclusions and findings set
         forth in the Initial T.J. Smith Letter.

                  (w) The Company shall have furnished to the Initial Purchasers
         a letter (the "NETHERLAND SEWELL BRING-DOWN LETTER") of Netherland
         Sewell & Associates, Inc., addressed to the Initial Purchasers and
         dated the Closing Date confirming in all material respects the
         conclusions and findings set forth in the Initial Netherland Sewell
         Letter.

                  (x) The Company shall have, simultaneously with the execution
         of the Indenture, executed a senior secured revolving credit facility
         with a syndicate of lenders led by Wells Fargo Bank, N.A. and a second
         lien term loan with a syndicate of lenders arranged by Guggenheim
         Corporate Funding, LLC.

All opinions, letters, evidence and certificates mentioned above or elsewhere in
this Agreement shall be deemed to be in compliance with the provisions hereof
only if they are in form and substance reasonably satisfactory to Sidley Austin
Brown & Wood LLP.

                  6.       Termination.

                  (a) If any condition specified in Section 5 shall not have
         been fulfilled when and as required to be fulfilled, this Agreement may
         be terminated by Guggenheim on behalf of the Initial Purchasers by
         notice to the Company at any time at or prior to Closing Date, and such
         termination shall be without liability of any party to any other party
         except as provided in Section 9 and 13 and except that certain
         provisions of this Agreement shall survive any such termination and
         remain in full force and effect in accordance with Section 14 hereof;

                  (b) Guggenheim on behalf of the Initial Purchasers may
         terminate this Agreement, by notice to the Company, at any time at or
         prior to the Closing Date (i) if there has been, since the time of
         execution of this Agreement or since the respective dates as of which
         information is given in the Offering Memorandum (exclusive of any
         amendments or supplements thereto subsequent to the date of this
         Agreement), any material adverse change in the condition, financial or
         otherwise, or in the earnings, business affairs or business prospects
         of the Company and its subsidiaries considered as one enterprise,
         whether or not arising in the ordinary course of business, or (ii) if
         there has occurred any material adverse change in the financial markets
         in the United States or the international financial markets, any
         outbreak of hostilities or escalation thereof or other calamity or
         crisis or any change or development involving a prospective change in
         national or international political, financial or economic conditions,
         in each case the effect of which is such as to make it, in the judgment
         of Guggenheim, impracticable or inadvisable to market the Securities or
         to enforce contracts for the sale of the Securities, or (iii) if
         trading in any securities of the Company has been suspended or
         materially limited by the Commission or the NASDAQ System, or if
         trading generally on the American Stock Exchange or the New York Stock
         Exchange or in the NASDAQ System has been suspended or materially
         limited, or minimum or maximum prices for trading

                                       20

<PAGE>

         have been fixed, or maximum ranges for prices have been required, by
         any of said exchanges or by such system or by order of the Commission,
         the National Association of Securities Dealers, Inc. or any other
         governmental authority, or (iv) a material disruption has occurred in
         commercial banking or securities settlement or clearance services in
         the United States or (v) if a banking moratorium has been declared by
         either Federal or New York authorities.

                  7.       Defaulting Initial Purchasers.

                  (a) If, on the Closing Date, any Initial Purchaser defaults in
         the performance of its obligations under this Agreement, the
         non-defaulting Initial Purchasers may make arrangements for the
         purchase of the Securities which such defaulting Initial Purchaser
         agreed but failed to purchase by other persons satisfactory to the
         Company and the non-defaulting Initial Purchasers, but if no such
         arrangements are made within 24 hours after such default, this
         Agreement shall terminate without liability on the part of the
         non-defaulting Initial Purchasers, the Company and the Guarantors,
         except that the Company and the Guarantors will continue to be liable
         for the payment of expenses to the extent set forth in Sections 8 and
         12 and except that the provisions of Sections 9 and 10 shall not
         terminate and shall remain in effect. As used in this Agreement, the
         term "Initial Purchasers" includes, for all purposes of this Agreement
         unless the context otherwise requires, any party not listed in Schedule
         2 hereto that, pursuant to this Section 7, purchases Securities which a
         defaulting Initial Purchaser agreed but failed to purchase.

                  (b) Nothing contained herein shall relieve a defaulting
         Initial Purchaser of any liability it may have to the Company, the
         Guarantors or any non-defaulting Initial Purchaser for damages caused
         by its default. If other persons are obligated or agree to purchase the
         Securities of a defaulting Initial Purchaser, either the non-defaulting
         Initial Purchasers or the Company may postpone the Closing Date for up
         to seven full business days in order to effect any changes that in the
         opinion of counsel for the Company or counsel for the Initial
         Purchasers may be necessary in the Offering Memorandum or in any other
         document or arrangement, and the Company agrees to promptly prepare any
         amendment or supplement to the Offering Memorandum that effects any
         such changes.

                  8.       Reimbursement of Initial Purchasers, Expenses. If (a)
this Agreement shall have been terminated pursuant to Section 6, (b) the Company
shall fail to tender the Securities for delivery to the Initial Purchasers for
any reason permitted under this Agreement or (c) the Initial Purchasers shall
decline to purchase the Securities for any reason permitted under this
Agreement, the Company and each of the Guarantors shall reimburse the Initial
Purchasers for such out-of-pocket expenses (including reasonable fees and
disbursements of counsel) as shall have been reasonably incurred by the Initial
Purchasers in connection with this Agreement and the proposed purchase and
resale of the Securities; provided, however, if this Agreement is terminated
pursuant to Section 7 by reason of the default of an Initial Purchaser, the
Company and the Guarantors shall not be obligated to reimburse such Initial
Purchaser for such expenses.

                  9.       Indemnification. (a) The Company and each of the
Guarantors shall jointly and severally indemnify and hold harmless each Initial
Purchaser, its affiliates, its officers, directors, employees, representatives
and agents, and each person, if any, who controls

                                       21

<PAGE>

such Initial Purchasers within the meaning of the Securities Act or the Exchange
Act (collectively referred to for purposes of this Section 9(a) and Section 10
as an Initial Purchaser), from and against any loss, claim, damage or liability,
joint or several, or any action in respect thereof (including, without
limitation, any loss, claim, damage, liability or action relating to purchases
and sales of the Securities), to which the Initial Purchaser may become subject,
whether commenced or threatened, under the Securities Act, the Exchange Act, any
other federal or state statutory law or regulation, at common law or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is
based upon, (i) any untrue statement or alleged untrue statement of a material
fact contained in the Offering Memorandum or in any amendment or supplement
thereto or in any information provided by the Company or any Guarantor pursuant
to Section 4(f) or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, and shall reimburse each Initial Purchaser promptly upon
demand for any legal or other expenses reasonably incurred by that Initial
Purchaser in connection with investigating or defending or preparing to defend
against or appearing as a third party witness in connection with any such loss,
claim, damage, liability or action as such expenses are incurred; provided,
however, that neither the Company nor any Guarantor shall be liable in any such
case to the extent that any such loss, claim, damage, liability or action arises
out of, or is based upon, an untrue statement or alleged untrue statement in or
omission or alleged omission from any of such documents in reliance upon and in
conformity with any Initial Purchasers' Information.

                  (b) Each Initial Purchaser, severally and not jointly, shall
         indemnify and hold harmless the Company and each of the Guarantors and
         their respective affiliates, their respective officers, directors,
         employees, representatives and agents, and each person, if any, who
         controls the Company within the meaning of the Securities Act or the
         Exchange Act (collectively referred to for purposes of this Section
         9(b) and Section 10 as the Company), from and against any loss, claim,
         damage or liability, joint or several, or any action in respect
         thereof, to which the Company may become subject, whether commenced or
         threatened, under the Securities Act, the Exchange Act, any other
         federal or state statutory law or regulation, at common law or
         otherwise, insofar as such loss, claim, damage, liability or action
         arises out of, or is based upon, (i) any untrue statement or alleged
         untrue statement of a material fact contained in the Offering
         Memorandum or in any amendment or supplement thereto or (ii) the
         omission or alleged omission to state therein a material fact required
         to be stated therein or necessary in order to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading, provided, however, in each case, only to the extent
         that the untrue statement or alleged untrue statement or omission or
         alleged omission was made in reliance upon and in conformity with any
         Initial Purchasers' Information provided by such Initial Purchaser, and
         shall reimburse the Company for any legal or other expenses reasonably
         incurred by the Company in connection with investigating or defending
         or preparing to defend against or appearing as a third party witness in
         connection with any such loss, claim, damage, liability or action as
         such expenses are incurred.

                  (c) Promptly after receipt by an indemnified party under this
         Section 9 of notice of any claim or the commencement of any action, the
         indemnified party shall, if a claim in respect thereof is to be made
         against the indemnifying party pursuant to Section 9(a) or

                                       22

<PAGE>

         9(b), notify the indemnifying party in writing of the claim or the
         commencement of that action; provided, however, that the failure to
         notify the indemnifying party shall not relieve it from any liability
         that it may have under this Section 9 except to the extent that it has
         been materially prejudiced by such failure; and, provided, further,
         that the failure to notify the indemnifying party shall not relieve it
         from any liability which it may have to an indemnified party otherwise
         than under this Section 9. If any such claim or action shall be brought
         against an indemnified party, and it shall notify the indemnifying
         party thereof, the indemnifying party shall be entitled to participate
         therein and, to the extent that it wishes, jointly with any other
         similarly notified indemnifying party, to assume the defense thereof
         with counsel reasonably satisfactory to the indemnified party. After
         notice from the indemnifying party to the indemnified party of its
         election to assume the defense of such claim or action, the
         indemnifying party shall not be liable to the indemnified party under
         this Section 9 for any legal or other expenses subsequently incurred by
         the indemnified party in connection with the defense thereof other than
         reasonable costs of investigation; provided, however, that an
         indemnified party shall have the right to employ its own counsel in any
         such action, but the fees, expenses and other charges of such counsel
         for the indemnified party will be at the expense of such indemnified
         party unless (1) the employment of counsel by the indemnified party has
         been authorized in writing by the indemnifying party, (2) the
         indemnified party has reasonably concluded (based upon written advice
         of counsel to the indemnified party) that there may be legal defenses
         available to it or other indemnified parties that are different from or
         in addition to those available to the indemnifying party, (3) a
         conflict or potential conflict exists (based upon written advice of
         counsel to the indemnified party) between the indemnified party and the
         indemnifying party (in which case the indemnifying party will not have
         the right to direct the defense of such action on behalf of the
         indemnified party) or (4) the indemnifying party has not in fact
         employed counsel reasonably satisfactory to the indemnified party to
         assume the defense of such action within a reasonable time after
         receiving notice of the commencement of the action, in each of which
         cases the reasonable fees, disbursements and other charges of counsel
         will be at the expense of the indemnifying party or parties. It is
         understood that the indemnifying party or parties shall not, in
         connection with any proceeding or related proceedings in the same
         jurisdiction, be liable for the reasonable fees, disbursements and
         other charges of more than one separate firm of attorneys (in addition
         to any local counsel) at any one time for all such indemnified party or
         parties. Each indemnified party, as a condition of the indemnity
         agreements contained in Sections 9(a) and 9(b), shall use all
         reasonable efforts to cooperate with the indemnifying party in the
         defense of any such action or claim.

                  (d) Settlement without Consent if Failure to Reimburse. The
         Company shall not be liable for any settlement of any proceedings
         effected without its written consent (which consent shall not be
         unreasonably withheld). Notwithstanding the immediately preceding
         sentence, if at any time an indemnified party shall have requested the
         Company to reimburse such indemnified party for legal or other expenses
         in connection with investigating, responding to or defending any
         proceedings as contemplated by Section 9(a), the Company shall be
         liable for any settlement of any proceedings effected without its
         written consent if (i) such settlement is entered into more than 45
         days after receipt by the Company of such request for the
         reimbursement, (ii) the Company shall

                                       23

<PAGE>

         not have reimbursed such indemnified party in accordance with such
         request prior to the date of such settlement and (iii) the Company
         shall not have responded in writing to such request, specifying those
         expenses that it has chosen not to reimburse and the reason for such
         non-reimbursement, prior to the date of such settlement. The Company
         shall not, without the prior written consent of an indemnified party
         (which consent shall not be unreasonably withheld), effect any
         settlement of any pending or threatened proceedings in respect of which
         indemnity could have been sought hereunder by such indemnified party
         unless such settlement (x) includes an unconditional release of such
         indemnified party in form and substance satisfactory to such
         indemnified party from all liability on claims that are the subject
         matter of such proceedings and (y) does not include any statement as to
         or any admission of fault, culpability or failure to act by or on
         behalf of any indemnified party. In addition, except as otherwise set
         forth in this paragraph, an indemnified party shall not, without the
         prior written consent of the Company (which consent shall not be
         unreasonably withheld), effect any settlement of any pending or
         threatened proceedings in respect of which indemnity could have been
         sought hereunder by such indemnified party unless such settlement (x)
         includes an unconditional release of the Company in form and substance
         satisfactory to the Company from all liability on claims that are the
         subject matter of such proceedings and (y) does not include any
         statement as to or any admission of fault, culpability or failure to
         act by or on behalf of the Company.

                  The obligations of the Company, each of the Guarantors and
each of the Initial Purchasers in this Section 9 and in Section 10 are in
addition to any other liability that the Company, each of the Guarantors or any
Initial Purchaser, as the case may be, may otherwise have, including in respect
of any breaches of representations, warranties and agreements made herein by any
such party.

                  10.      Contribution. If the indemnification provided for in
Section 9 is unavailable or insufficient to hold harmless an indemnified party
under Section 9(a) or 9(b), then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by
such indemnified party as a result of such loss, claim, damage or liability, or
action in respect thereof, (i) in such proportion as shall be appropriate to
reflect the relative benefits received by the Company and the Guarantors on the
one hand and the Initial Purchasers on the other from the offering of the
Securities or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Company and the Guarantors on the one hand and the Initial
Purchasers on the other with respect to the statements or omissions that
resulted in such loss, claim, damage or liability, or action in respect thereof,
as well as any other relevant equitable considerations. The relative benefits
received by the Company and the Guarantors on the one hand and the Initial
Purchasers on the other with respect to such offering shall be deemed to be in
the same proportion as the total net proceeds from the offering of the
Securities purchased under this Agreement (before deducting expenses) received
by or on behalf of the Company and the Guarantors, on the one hand, and the
total discounts and commissions received by the Initial Purchasers with respect
to the Securities purchased under this Agreement, on the other, bear to the
total gross proceeds from the sale of the Securities under this Agreement. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the

                                       24

<PAGE>

omission or alleged omission to state a material fact relates to the Company,
the Guarantors or information supplied by the Company and the Guarantors on the
one hand or to any Initial Purchasers' Information on the other, the intent of
the parties and their relative knowledge, access to information and opportunity
to correct or prevent such untrue statement or omissions. The Company, the
Guarantors and the Initial Purchasers agree that it would not be just and
equitable if contributions pursuant to this Section 10 were to be determined by
pro rata allocation (even if the Initial Purchasers were treated as one entity
for such purpose) or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or
liability, or action in respect thereof, referred to above in this Section 10
shall be deemed to include, for purposes of this Section 10, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending or preparing to defend any such action or claim.
Notwithstanding the provisions of this Section 10, no Initial Purchaser shall be
required to contribute any amount in excess of the amount by which the total
discounts and commissions received by such Initial Purchaser with respect to the
Securities purchased by it under this Agreement exceeds the amount of any
damages which such Initial Purchaser has otherwise paid or become liable to pay
by reason of any untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Initial
Purchasers obligations to contribute as provided in this Section 10 are several
in proportion to their respective purchase obligations and not joint.

                  11.      Persons Entitled to Benefit of Agreement. This
Agreement shall inure to the benefit of and be binding upon the Initial
Purchasers, the Company each of the Guarantors and their respective successors.
This Agreement and the terms and provisions hereof are for the sole benefit of
only those persons, except as provided in Sections 9 and 10 with respect to
affiliates, officers, directors, employees, representatives, agents and
controlling persons of the Company, each of the Guarantors and the Initial
Purchasers and in Section 4(f) with respect to holders and prospective
purchasers of the Securities. Nothing in this Agreement is intended or shall be
construed to give any person, other than the persons referred to in this Section
11, any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision contained herein.

                  12.      Expenses. The Company and the Guarantors agree with
the Initial Purchasers to pay (a) the costs incident to the authorization,
issuance, sale, preparation and delivery of the Securities and any taxes payable
in that connection; (b) the costs incident to the preparation, printing and
distribution of the Offering Memorandum and any amendments or supplements
thereto; (c) the costs of reproducing and distributing each of the Transaction
Documents; (d) the costs incident to the preparation, printing and delivery of
the certificates evidencing the Securities, including stamp duties and transfer
taxes, if any, payable upon issuance of the Securities; (e) the fees and
expenses of the Company's counsel and independent accountants; (f) the fees and
expenses of qualifying the Securities under the securities laws of the several
jurisdictions as provided in Section 4(g) and of preparing, printing and
distributing Blue Sky Memoranda (including related fees and expenses of counsel
for the Initial Purchasers); (g) any fees charged by rating agencies for rating
the Securities; (h) the fees and expenses of the Trustee and any paying agent
(including related fees and expenses of any counsel to such

                                       25

<PAGE>

parties); (i) all expenses and application fees incurred in connection with the
application for the inclusion of the Securities on the PORTAL Market and the
approval of the Securities for book-entry transfer by DTC; (j) all travel
expenses of the Company's officers and employees and other expenses of the
Company in connection with attending or hosting meetings with prospective
purchasers of the Securities from the Initial Purchasers; and (k) all other
costs and expenses incident to the performance of the obligations of the Company
and the Guarantors under this Agreement that are not otherwise specifically
provided for in this Section 12; provided, however, that except as provided in
Sections 8, 9 and in this Section 12, the Initial Purchasers shall pay their own
costs and expenses.

                  13.      Survival. The respective indemnities, rights of
contribution, representations, warranties and agreements of the Company, the
Guarantors and the Initial Purchasers contained in this Agreement or made by or
on behalf of the Company, the Guarantors or the Initial Purchasers pursuant to
this Agreement or any certificate delivered pursuant hereto shall survive the
delivery of and payment for the Securities and shall remain in full force and
effect, regardless of any termination or cancellation of this Agreement or any
investigation made by or on behalf of any of them or any of their respective
affiliates, officers, directors, employees, representatives, agents or
controlling persons.

                  14.      Notices, etc. All statements, requests, notices and
agreements hereunder shall be in writing, and:

                  (a) if to the Initial Purchasers, shall be delivered or sent
         by mail or telecopy transmission to Guggenheim Capital Markets, LLC,
         135 East 57th Street 9th Floor, New York, NY 10022, Attention: Todd
         Boehly (facsimile no.: (212) 644-8396 ); or

                  (b) if to the Company or the Guarantors, shall be delivered or
         sent by mail or telecopy transmission to the address of the Company set
         forth in the Offering Memorandum, Attention: Richard Piacenti
         (facsimile no.: (713) 495-3114).

Any such statements, requests, notices or agreements shall take effect at the
time of receipt thereof. The Company shall be entitled to act and rely upon any
request, consent, notice or agreement given or made on behalf of the Initial
Purchasers by Guggenheim.

                  15.      Definition of Terms. For purposes of this Agreement,
(a) the term "BUSINESS DAY" means any day on which the New York Stock Exchange,
Inc. is open for trading, (b) the term "SUBSIDIARY" has the meaning set forth in
Rule 405 under the Securities Act and, (c) except where otherwise expressly
provided, the term "AFFILIATE" has the meaning set forth in Rule 405 under the
Securities Act.

                  16.      Initial Purchasers' Information. The parties hereto
acknowledge and agree that, for all purposes of this Agreement, the Initial
Purchasers' Information consists solely of the following information in the
Offering Memorandum: the statements concerning the Initial Purchasers contained
in fifth and sixth sentences of the seventh paragraph and first, second,
penultimate and last sentences of the eighth paragraph under the heading "Plan
of Distribution".

                  17.      Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

                                       26

<PAGE>

                  18.      Counterparts. This Agreement may be executed in one
or more counterparts (which may include counterparts delivered by telecopier)
and, if executed in more than one counterpart, the executed agreement,
counterparts shall each be deemed to be an original, but all such counterparts
shall together constitute one and the same instrument.

                  19.      Amendments. No amendment or waiver of any provision
of this Agreement, nor any consent or approval to any departure therefrom, shall
in any event be effective unless the same shall be in writing and signed by the
parties hereto.

                  20.      Headings. The headings herein are inserted for
convenience of reference only and are not intended to be part of, or to affect
the meaning or interpretation of, this Agreement.

                                       27

<PAGE>

         If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us a counterpart hereof, whereupon this
instrument will become a binding agreement between the Company, the Guarantors
and the Initial Purchasers in accordance with its terms.

                                        Very truly yours,

                                        MISSION RESOURCES CORPORATION

                                        By: /s/ Richard W. Piacenti
                                           -------------------------------------
                                            Name: Richard W. Piacenti
                                            Title:  Executive Vice President and
                                                         Chief Financial Officer

                                        BLACK HAWK OIL COMPANY

                                        By: /s/ Richard W. Piacenti
                                           -------------------------------------
                                        Name: Richard W. Piacenti
                                        Title:  Executive Vice President and
                                                         Chief Financial Officer

                                        MISSION HOLDINGS LLC

                                        By: /s/ Richard W. Piacenti
                                           -------------------------------------
                                            Name: Richard W. Piacenti
                                            Title:  Manager

                                        MISSION E&P LIMITED PARTNERSHIP

                                        By: Black Hawk Oil Company
                                            General Partner

                                        By: /s/ Richard W. Piacenti
                                           -------------------------------------
                                            Name: Richard W. Piacenti
                                            Title: Executive Vice President and
                                                         Chief Financial Officer

                                       28

<PAGE>

Accepted:

GUGGENHEIM CAPITAL MARKETS, LLC

By: /s/ Jeffrey Lewis
   ------------------------------------
    Name:  Jeffrey Lewis
    Title:  Managing Director

                                       29

<PAGE>

                                                                      SCHEDULE 1

                                   GUARANTORS

BLACK HAWK OIL COMPANY

MISSION HOLDINGS LLC

MISSION E&P LIMITED PARTNERSHIP

                                        1

<PAGE>

                                                                      SCHEDULE 2

                               INITIAL PURCHASERS

<TABLE>
<CAPTION>

                                                                PRINCIPAL
                                                                AMOUNT OF
INITIAL PURCHASERS                                              SECURITIES
-------------------------------                                ------------
<S>                                                            <C>
Guggenheim Capital Markets, LLC                                $108,000,000
Petrie Parkman & Co., Inc.                                       22,000,000
                                                               ------------
Total                                                          $130,000,000
</TABLE>

<PAGE>

                                                                         ANNEX A

              [FORM OF EXCHANGE AND REGISTRATION RIGHTS AGREEMENT]

<PAGE>

                                                                         ANNEX B

                   FORM OF OPINION OF PORTER & HEDGES, L.L.P.
                                   Pursuant to
                     Section 5(d) of the Purchase Agreement

1.   The Company has been duly incorporated and is a validly existing
     corporation in good standing under the laws of the State of Delaware, is
     duly qualified to do business and is in good standing as a foreign entity
     in the jurisdictions on Exhibit A, and has all power and authority
     necessary to own, lease and operate its properties and to conduct the
     business in which it is engaged; no holder of securities of the Company has
     any right which has not been fully exercised or waived to require the
     Company to register the offer or sale of any securities owned by such
     holder under the Securities Act under, or as a result of the filing of the
     registration statement to be filed by the Company pursuant to the terms of
     the Registration Rights Agreement.

2.   Each Guarantor has been duly incorporated and is validly existing in good
     standing under the laws of the jurisdiction of its formation, has power and
     authority to own, lease and operate its properties and to conduct its
     business as described in the Offering Memorandum and is duly qualified as a
     foreign corporation to transact business and is in good standing in each
     jurisdiction on Exhibit A; except as described in the Offering Memorandum,
     all of the issued and outstanding capital stock or member interests or
     partnership interests of each Guarantor has been duly authorized and
     validly issued, are fully paid and non-assessable and is owned by the
     Company, directly or through subsidiaries, free and clear of any security
     interest, mortgage, pledge, lien, encumbrance, claim, equity, restriction
     upon voting or transfer; to our knowledge, none of the outstanding shares
     of capital stock or member interests or partnership interests of the
     Designated Subsidiaries was issued in violation of any preemptive or
     similar rights of any securityholder of such Guarantor.

3.   The Company has an authorized capitalization as set forth in the Offering
     Memorandum under the heading "Capitalization". The Company has an
     authorized capitalization of 65,000,000 shares, of which 60,000,000 are
     shares of common stock, par value $0.01 per share, and 5,000,000 are shares
     of preferred stock, par value $0.01 per share.

4.   The statements in the Offering Memorandum under the heading "Certain United
     States Federal Tax Consequences," and "Description of Other Indebtedness,"
     and in the Company's Annual Report on Form 10-K for the fiscal year ended
     December 31, 2003 under "Business and Properties - Applicable Laws and
     Regulations," "-Risk Factors--Compliance with environmental and other
     government regulations is costly and could negatively impact production,"
     "--Risk Factors--We may have claims asserted against us to plug and abandon
     wells and restore the surface," "--Risk Factors--We may have claims
     asserted against us to plug and abandon wells and restore the surface,"
     "--Risk Factors--Our certificate of incorporation, bylaws, rights plan and
     Delaware law have provisions that discourage corporate takeovers and could
     prevent stockholders from realizing a premium on their investment," and
     "Legal Proceedings," to the extent that such information summarizes legal
     matters, legal proceedings, or legal conclusions, has been reviewed by us
     and, insofar as such information purports to describe or summarize the
     legal matters, documents, statutes,

                                       B-1

<PAGE>

     regulations, proceedings or conclusions referred to therein, fairly
     summarize or describe the matters described therein in all material
     respects.

5.   All descriptions in the Offering Memorandum of contracts and other
     documents to which the Company or any of its subsidiaries are a party are
     accurate in all material respects; to the best of our knowledge, there are
     no franchises, contracts, indentures, mortgages, loan agreements, notes,
     leases or other instruments that would be required to be described or
     referred to in the Offering Memorandum that are not described or referred
     to in the Offering Memorandum other than those described or referred to
     therein or incorporated by reference thereto, and the descriptions thereof
     or references thereto are correct in all material respects.

6.   The documents incorporated by reference in the Offering Memorandum (other
     than the financial statements and supporting schedules therein, as to which
     no opinion need be rendered), when they were filed with the Commission
     complied as to form in all material respects with the requirements of the
     1934 Act and the rules and regulations of the Commission thereunder.

7.   The Indenture conforms in all material respects with the requirements of
     the Trust Indenture Act and the rules and regulations of the Commission
     applicable to an indenture which is qualified thereunder.

8.   The Purchase Agreement has been duly authorized, executed and delivered by
     the Company and each of the Guarantors.

9.   The Securities have been duly authorized, executed and delivered by the
     Company and each of the Guarantors and, when paid for as provided in the
     Purchase Agreement, will be duly and validly issued and outstanding. The
     Exchange Securities have been duly authorized by the Company and each of
     the Guarantors.

10.  Each Transaction Document other than the Securities and the Exchange
     Securities has been duly authorized, executed and delivered by the Company
     and each of the Guarantors, as the case may be, and (assuming the due
     authorization, execution and delivery thereof by the parties thereto)
     constitutes a valid and legally binding obligation of the Company and each
     of the Guarantors. Each of the Transaction Documents conforms in all
     material respects to the description thereof contained in the Offering
     Memorandum.

11.  The execution, delivery and performance by the Company and each of the
     Guarantors of each of the Transaction Documents to which it is a party, the
     issuance, authentication, sale and delivery of the Securities and
     performance the Company and each of the Guarantors with the terms thereof
     and the consummation of the transactions contemplated by the Transaction
     Documents will not conflict with or result in a breach or violation of any
     of the terms or provisions of, or constitute a default under, or result in
     the creation or imposition of any lien, charge or encumbrance upon any
     property or assets of the Company or any of its subsidiaries pursuant to,
     any indenture, mortgage, deed of trust, loan agreement or other agreement
     or instrument to which the Company or any of its subsidiaries is a party or
     by which the Company or any of its subsidiaries is bound or to which any of
     the property or assets of the Company or any of its subsidiaries is subject
     that is filed as an exhibit to the Company's

                                       B-2

<PAGE>

     most recent Annual Report on Form 10-K, nor will such actions result in any
     violation of (A) the provisions of the charter or by-laws of the Company or
     any of its subsidiaries or (B) any statute or any judgment, order, decree,
     rule or regulation of any court or arbitrator or governmental agency or
     body having jurisdiction over the Company or any of its subsidiaries or any
     of their properties or assets known by us to be generally applicable to
     similar transactions.

12.  No consent, approval, authorization or order of, or filing or registration
     with, any such court or arbitrator or governmental agency or body under any
     such statute, judgment, order, decree, rule or regulation is required for
     the execution, delivery and performance by the Company and each of the
     Guarantors of each of the Transaction Documents to which each is a party,
     the issuance, authentication, sale and delivery of the Securities and
     compliance by the Company and each of the Guarantors with the terms thereof
     and the consummation of the transactions contemplated by the Transaction
     Documents, except (A) with respect to the performance by the Company of the
     Registration Rights Agreement, the registration with the Commission of the
     Securities under the Shelf Registration Statement and/or the registration
     of the Exchange Offer with the Commission, and, in each case, registration
     or qualification under applicable securities or "Blue Sky" laws of the
     various states, (B) those required in connection with the qualification of
     the Indenture under the 1939 Act, (C) those required in connection with
     arranging for the Securities to be designated eligible for trading in the
     Private Offerings, Resales and Trading through Automated Linkages
     ("PORTAL") Market or for the Securities to be eligible for clearance and
     settlement through The Depository Trust Company ("DTC"), and (D) such as
     have already been obtained.

13.  Neither the Company nor any of its subsidiaries is, and will not after
     giving effect to the offering and sale of the Securities and the
     application of the proceeds thereof as described in the Prospectus be (A)
     an "investment company" or a company "controlled by" an investment company
     within the meaning of the Investment Company Act of 1940, as amended, and
     the rules and regulations of the Commission thereunder, without taking
     account of any exemption thereunder arising out of the number of holders of
     the Company's securities or (B) a "holding company" or a "subsidiary
     company" of a holding company or an "affiliate" thereof within the meaning
     of the Public Utility Holding Company Act of 1935, as amended.

14.  Except as described in the Offering Memorandum, to our knowledge, there are
     no legal or governmental proceedings pending to which the Company
     (including any predecessor entity) or any of its subsidiaries is a party or
     of which any property or assets of the Company or any of its subsidiaries
     is the subject which, singularly or in the aggregate, if determined
     adversely to the Company or any of its subsidiaries, could reasonably be
     expected to have a material adverse effect on the Company's or any
     Guarantor's ability to perform its obligations under the Indenture, the
     Notes, the Guarantees, the Purchase Agreement, the Registration Rights
     Agreement or the Escrow Agreement, as applicable, or on the condition,
     financial or otherwise, or in the earnings, business affairs, management or
     business prospects of the Company and its subsidiaries, considered as one
     enterprise, whether or not arising in the ordinary course of business (a
     "Material Adverse Effect"), and no such proceedings are threatened or
     contemplated by governmental authorities or threatened by others.

                                       B-3

<PAGE>

15.  Neither the consummation of the transactions contemplated by the Purchase
     Agreement nor the sale, issuance, execution or delivery of the Securities
     and the application of the proceeds as described in the Offering Memorandum
     will violate Regulation T, U or X of the Federal Reserve Board.

16.  Assuming the accuracy of the representations and warranties of the Company,
     the Guarantors and the Initial Purchasers, and the performance of their
     respective agreements and covenants contained in the Purchase Agreement, no
     registration of the Securities under the Securities Act or qualification of
     the Indenture under the Trust Indenture Act is required in connection with
     the issuance and sale of the Securities by the Company to the Initial
     Purchasers and the initial offer, resale and delivery of the Securities by
     the Initial Purchasers in the manner contemplated by the Purchase Agreement
     and the Offering Memorandum.

         Nothing has come to our attention that would lead us to believe that
the Offering Memorandum (excluding any amendment or supplement thereto) or any
amendment or supplement thereto (except for (i) financial statements and the
notes and schedules thereto and (ii) any reserve, production, acreage,
productive well, title or other oil and gas data, or financial or statistical
data included or incorporated by reference therein or omitted therefrom as to
which we need make no statement), at the time the Offering Memorandum was
issued, at the time any such amended or supplemented Offering Memorandum was
issued or at Closing Date, included or includes an untrue statement of a
material fact or omitted or omits to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

         In rendering such opinion, such counsel may rely, as to matters of fact
(but not as to legal conclusions), to the extent they deem proper, on
certificates of responsible officers of the Company and public officials. Such
opinion shall not state that it is to be governed or qualified by, or that it is
otherwise subject to, any treatise, written policy or other document relating to
legal opinions, including, without limitation, the Legal Opinion Accord of the
ABA Section of Business Law (1991).

                                       B-4

<PAGE>

                                                                         ANNEX C

                      FORM OF OPINION OF NIXON PEABODY LLP
                                   Pursuant to
                     Section 5(e) of the Purchase Agreement

1.   The Registration Rights Agreement (assuming the due authorization,
     execution and delivery thereof by the Initial Purchasers) constitutes an
     obligation of the Company and each of the Guarantors enforceable against
     the Company and each of the Guarantors in accordance with its terms, except
     to the extent that such enforceability may be limited by applicable
     bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
     and other similar laws affecting creditors' rights generally and by general
     equitable principles (whether considered in a proceeding in equity or at
     law) and except as rights to indemnification and contribution set forth
     therein may be limited by applicable law.

2.   The Indenture(assuming the due authorization, execution and delivery
     thereof by the Trustee) constitutes an obligation of the Company and each
     of the Guarantors enforceable against the Company and each of the
     Guarantors in accordance with its terms, except to the extent that such
     enforceability may be limited by applicable bankruptcy, insolvency,
     fraudulent conveyance, reorganization, moratorium and other similar laws
     affecting creditors' rights generally and by general equitable principles
     (whether considered in a proceeding in equity or at law) and except as
     rights to indemnification and contribution set forth therein may be limited
     by applicable law.

3.   The Notes (assuming the due authentication and delivery thereof by the
     Trustee), when paid for as provided in the Purchase Agreement, constitute
     obligations of the Company, entitled to the benefits of the Indenture and
     enforceable against the Company, in accordance with their terms, except to
     the extent that such enforceability may be limited by applicable
     bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
     and other similar laws affecting creditors' rights generally and by general
     equitable principles (whether considered in a proceeding in equity or at
     law) and except as rights to indemnification and contribution set forth
     therein may be limited by applicable law.

4.   The Guarantees (assuming the due authorization, execution and delivery
     thereof by the Trustee) will constitute obligations of the related
     Guarantor, enforceable against each such Guarantor in accordance with their
     terms, subject to bankruptcy, insolvency, fraudulent conveyance,
     reorganization, moratorium and other similar laws affecting creditors'
     rights generally and to general equitable principles (whether considered in
     a proceeding in equity or at law) and except as rights to indemnification
     and contribution set forth therein may be limited by applicable law.

5.   The Exchange Securities (assuming the due execution, authentication and
     delivery, as the case may be, of the Exchange Notes by the Company and the
     Trustee and the due execution and delivery of the Exchange Guarantees by
     the Company and the Trustee, all in accordance with the terms of the
     Indenture) will constitute obligations of the Company, as issuer of the
     Notes, and each of the Guarantors, as guarantors, enforceable against the
     Company, as issuer of the Notes, and each of the Guarantors, as guarantors,
     in accordance with its terms, except

                                       C-1

<PAGE>

     to the extent that such enforceability may be limited by applicable
     bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
     and other similar laws affecting creditors' rights generally and by general
     equitable principles (whether considered in a proceeding in equity or at
     law) and except as rights to indemnification and contribution set forth
     therein may be limited by applicable law.

6.   The Escrow Agreement (assuming the due authorization, execution and
     delivery thereof by the Escrow Agent) constitutes an obligation of the
     Company enforceable against the Company in accordance with its terms,
     except to the extent that such enforceability may be limited by applicable
     bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
     and other similar laws affecting creditors' rights generally and by general
     equitable principles (whether considered in a proceeding in equity or at
     law) and except as rights to indemnification and contribution set forth
     therein may be limited by applicable law.

         Nothing has come to our attention that would lead us to believe that
the Offering Memorandum (excluding any amendment or supplement thereto) or any
amendment or supplement thereto (except for (i) financial statements and the
notes and schedules thereto and (ii) any reserve, production, acreage,
productive well, title or other oil and gas data, or financial or statistical
data included or incorporated by reference therein or omitted therefrom as to
which we need make no statement), at the time the Offering Memorandum was
issued, at the time any such amended or supplemented Offering Memorandum was
issued or at Closing Date, included or includes an untrue statement of a
material fact or omitted or omits to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

         In rendering such opinion, such counsel may rely, as to matters of fact
(but not as to legal conclusions), to the extent they deem proper, on
certificates of responsible officers of the Company and public officials. Such
opinion shall not state that it is to be governed or qualified by, or that it is
otherwise subject to, any treatise, written policy or other document relating to
legal opinions, including, without limitation, the Legal Opinion Accord of the
ABA Section of Business Law (1991).

                                       C-2

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