Document:

EXHIBIT 4.2

                                                               EXECUTION VERSION

                          PLEDGE AND SECURITY AGREEMENT

         This PLEDGE AND SECURITY AGREEMENT (this "Pledge Agreement") is entered
into as of March 29, 2006, by and among EACH OF THE UNDERSIGNED, whether as an
original signatory hereto or as an Additional Grantor (as defined below) (the
"Grantors") and JPMORGAN CHASE BANK, N.A., a national banking association
("Agent"), as administrative agent for the Secured Parties (as defined below).

                              PRELIMINARY STATEMENT

         WHEREAS, Gasco Energy, Inc., as Borrower ("Borrower"), certain
subsidiaries of Borrower, as Guarantors, the Lenders party thereto and JPMorgan
Chase Bank, N.A., as the Administrative Agent for the Lenders ("Agent") are
parties to that certain Credit Agreement dated as of March 29, 2006 (as amended
or modified and in effect from time to time, the "Credit Agreement"), pursuant
to which the Lenders have agreed to make a revolving credit facility available
to Borrower;

         WHEREAS, in order to secure the obligations under the Credit Agreement,
each Grantor has agreed, among other things, to grant liens on and security
interests in the Collateral (as defined below) to Agent for the benefit of the
Secured Parties, and, in furtherance of the foregoing, has agreed to execute and
deliver this Pledge Agreement to Agent.

         ACCORDINGLY, each Grantor and Agent, on behalf of the Secured Parties,
hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1. Terms Defined in Credit Agreement. All capitalized terms used
herein and not otherwise defined shall have the meanings assigned to such terms
in the Credit Agreement.

         1.2. Terms Defined in Texas Uniform Commercial Code. Terms defined in
the Texas UCC which are not otherwise defined in this Pledge Agreement are used
herein as defined in the Texas UCC.

         1.3. Definitions of Certain Terms Used Herein. As used in this Pledge
Agreement, in addition to the terms defined in the Preliminary Statement, the
following terms shall have the following meanings:

         "Additional Grantors" shall have the meaning set forth in Section 4.6.

         "Article" means a numbered article of this Pledge Agreement, unless
another document is specifically referenced.

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         "Collateral" means all of the Pledged Securities, Intercompany Debt and
General Intangibles in which each Grantor now has or hereafter acquires any
right or interest, and the proceeds (including Stock Rights), insurance proceeds
and products thereof, together with all books and records, customer lists,
credit files, computer files, programs, printouts and other computer materials
and records related thereto.

         "Control" shall have the meaning set forth in Article 8 or, if
applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the Texas
UCC.

         "Default" means an event described in Section 5.1.

         "Exhibit" refers to a specific exhibit to this Pledge Agreement, unless
another document is specifically referenced.

         "General Intangibles" means general intangibles as defined in Article 9
of the Texas UCC including Intercompany Debt (to the extent it constitutes a
general intangible), partnership interests and ownership interests in any
limited liability company.

         "Intercompany Debt" means Indebtedness owed by any Grantor to any other
Grantor.

         "Investment Property" shall have the meaning set forth in Article 9 of
the Texas UCC.

         "Payment Intangibles" shall have the meaning set forth in Article 9 of
the Texas UCC.

         "Pledged Securities" means all Investment Property and Securities
described on Schedule 1 attached hereto and all Investment Property and
Securities described in any Pledge Amendment hereafter executed and delivered by
any Grantor pursuant to Section 4.5 of this Pledge Agreement.

         "Section" means a numbered section of this Pledge Agreement, unless
another document is specifically referenced.

         "Secured Parties" means Agent, the Lenders and the Lender
Counterparties and shall include Lenders and Lender Counterparties to the extent
that any Obligations owing to such Persons were incurred while such Persons were
Lenders or Lender Counterparties.

         "Security" has the meaning set forth in Article 8 of the Texas UCC.

         "Stock Rights" means any securities, dividends or other distributions
and any other right or property which any Grantor shall receive or shall become
entitled to receive for any reason whatsoever with respect to, in substitution
for or in exchange for any securities or other ownership interests in a
corporation, partnership, joint venture or limited liability company
constituting Collateral and any securities, any right to receive securities and
any right to receive earnings, in which any Grantor now has or hereafter
acquires any right, issued by an issuer of such securities.

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         "Texas UCC" means the Uniform Commercial Code as in effect in the State
of Texas, as the same may be amended, modified or supplemented.

         The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.

                                   ARTICLE II

                           GRANT OF SECURITY INTEREST

         Each Grantor hereby pledges, assigns and grants to Agent, on behalf of
and for the ratable benefit of the Secured Parties, a security interest in all
of such Grantor's right, title and interest in and to the Collateral to secure
the prompt and complete payment and performance of the Obligations.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         Each Grantor represents and warrants to Agent and the Secured Parties
that:

         3.1. Title, Authorization, Validity and Enforceability. Such Grantor
has good and valid rights in or the power to transfer the Collateral and title
to the Collateral with respect to which it has purported to grant a security
interest hereunder, free and clear of all Liens, and has full power and
authority to grant to Agent the security interest in such Collateral pursuant
hereto. The execution and delivery by such Grantor of this Pledge Agreement has
been duly authorized by proper corporate, partnership or limited liability
proceedings, and this Pledge Agreement constitutes a legal, valid and binding
obligation of such Grantor and creates a security interest which is enforceable
against such Grantor in all now owned and hereafter acquired Collateral.

         3.2. Conflicting Laws and Contracts. Neither the execution and delivery
by such Grantor of this Pledge Agreement, nor compliance with the terms and
provisions hereof will violate (i) any law, rule, regulation, order, writ,
judgment, injunction, decree or award binding on such Grantor, (ii) the
Organizational Documents of such Grantor, or (iii) the provisions of any
indenture, instrument or agreement to which such Grantor is a party or is
subject, or by which it, or its property, is bound, or conflict with or
constitute a default thereunder, or result in, or require, the creation or
imposition of any Lien in, of or on the property of such Grantor pursuant to the
terms of any such indenture, instrument or agreement. No order, consent,
adjudication, approval, license, authorization, or validation of, or filing,
recording or registration with, or exemption by, or other action in respect of
any governmental or public body or authority, or any subdivision thereof, which
has not been made or obtained by such Grantor, is required to be obtained by
such Grantor in connection with the execution and delivery of this Pledge
Agreement or the legality, validity, binding effect or enforceability of this
Pledge Agreement.

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         3.3. Type and Jurisdiction of Organization. Such Grantor is a
corporation, partnership or limited liability company duly and properly
incorporated or organized, as the case may be, validly existing and (to the
extent such concept applies to such entity) in good standing under the laws of
its jurisdiction of incorporation or organization and has all requisite
authority to conduct its business in each jurisdiction wherein failure to have
such authorization may result in a Material Adverse Effect. Such Grantor is not
now nor has it ever been incorporated or organized as any other type of entity
or under the laws of any other jurisdiction.

         3.4. Principal Location. Such Grantor's mailing address and the
location of its place of business (if it has only one) or its chief executive
office (if it has more than one place of business), is disclosed in Exhibit "A".
During the preceding five-year period, such Grantor has no other places of
business except those set forth in Exhibit "A".

         3.5. No Other Names. During the preceding five-year period, such
Grantor has not conducted business under any name except those set forth in
Exhibit "B". Each Grantor's name, as first set forth above, is the exact name as
it appears in such Grantor's Organizational Documents, as amended, as filed with
such Grantor's jurisdiction of organization.

         3.6. No Default. No Default exists.

         3.7. No Financing Statements. No financing statement describing all or
any portion of the Collateral which has not lapsed or been terminated naming
such Grantor as debtor has been filed in any jurisdiction except for the
financing statements naming Agent on behalf of the Secured Parties as the
secured party.

         3.8. Federal Employer Identification Number. Such Grantor's Federal
employer identification number are set forth on Exhibit "C".

         3.9. State Organization Number. Such Grantor's state organization
number is set forth on Exhibit "D".

         3.10. Pledged Securities and Other Investment Property. Schedule I sets
forth a complete and accurate list of the Securities and other Investment
Property delivered to Agent, for the benefit of the Secured Parties. Such
Grantor is the direct and beneficial owner of each Security and other type of
Investment Property listed on Schedule I, free and clear of any Liens, except
for the security interest granted to Agent for the benefit of the Secured
Parties hereunder. Each Grantor further represents and warrants that (i) all
such Securities or other types of Investment Property which are shares of stock
in a corporation or ownership interests in a partnership or limited liability
company have been (to the extent such concepts are relevant with respect to such
Security or other type of Investment Property) duly and validly issued, are
fully paid and non-assessable and (ii) with respect to any certificates
delivered to Agent representing an ownership interest in a partnership or
limited liability company, either such certificates are Securities as defined in
Article 8 of the Uniform Commercial Code of the applicable jurisdiction as a
result of actions by the issuer or otherwise, or, if such certificates are not
Securities, such Grantor has so informed Agent so that Agent may take steps to
perfect its security interest therein as a General Intangible.

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         3.11 Due Authorization of Pledged Securities. All of the Pledged
Securities have been duly authorized and validly issued and are fully paid and
non-assessable. The Pledged Securities constitute all of the issued and
outstanding Equity Interests of each of the direct Restricted Subsidiaries of
each Grantor and there are no outstanding warrants, options or other rights to
purchase, or other agreements outstanding with respect to, or property that is
now or hereafter convertible into, or that requires the issuance or sale of, any
Pledged Securities.

                                   ARTICLE IV

                                    COVENANTS

         From the date of this Pledge Agreement, and thereafter until this
Pledge Agreement is terminated:

         4.1. General.

                   4.1.1. Inspection. Each Grantor will permit Agent or any
         Lender, by its representatives and agents (i) to inspect the
         Collateral, (ii) to examine and make copies of the records of such
         Grantor relating to the Collateral and (iii) to discuss the Collateral
         and the related records of such Grantor with, and to be advised as to
         the same by, such Grantor's officers and employees, all at such
         reasonable times and intervals as Agent or such Lender may determine,
         and all at the Grantors' expense.

                   4.1.2. Taxes. Each Grantor will pay when due all Taxes,
         assessments and governmental charges and levies upon the Collateral,
         except where (a) the validity or amount thereof is being contested in
         good faith by appropriate proceedings, (b) such Grantor has set aside
         on its books adequate reserves with respect thereto in accordance with
         GAAP and (c) the failure to make payment pending such contest could not
         reasonably be expected to result in a Material Adverse Effect.

                   4.1.3. Records and Reports; Notification of Default. Each
         Grantor will maintain complete and accurate books and records with
         respect to the Collateral, and furnish Agent, with sufficient copies
         for each of the Secured Parties, such reports relating to the
         Collateral as Agent shall from time to time request. Each Grantor will
         give prompt notice in writing to Agent and the Secured Parties of the
         occurrence of any Default and of any other development, financial or
         otherwise, which might materially and adversely affect the Collateral.

                   4.1.4. Financing Statements and Other Actions; Defense of
         Title. Each Grantor hereby authorizes Agent to file, and if requested
         will execute and deliver to Agent, all financing statements and other
         documents and take such other actions as may from time to time be
         requested by Agent in order to maintain a first perfected security
         interest in and, if applicable, Control of, the Collateral. Each
         Grantor will take any and all actions necessary to defend title to the
         Collateral against all persons and to defend the security interest of
         Agent in the Collateral and the priority thereof against any Lien not
         expressly permitted hereunder.

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                   4.1.5. Disposition of Collateral. Except as otherwise
         permitted under the Credit Agreement, none of the Grantors will sell,
         lease or otherwise dispose of the Collateral.

                   4.1.6. Liens. None of the Grantors will create, incur, or
         suffer to exist any Lien on the Collateral except the security interest
         created by this Pledge Agreement and the Liens expressly permitted by
         Section 7.02 of the Credit Agreement.

                   4.1.7. Change in Corporate Existence, Type or Jurisdiction of
         Organization, Location, Name. Except as otherwise permitted under the
         Credit Agreement, each Grantor will:

                   (a)     preserve its existence as a corporation, partnership
                           or limited liability company and not, in one
                           transaction or a series of related transactions,
                           merge into or consolidate with any other entity, or
                           sell all or substantially all of its assets;

                   (b)     not change its name or its state of organization; and

                   (c)     not maintain its place of business (if it has only
                           one) or its chief executive office (if it has more
                           than one place of business) at a location other than
                           a location specified on Exhibit "A";

         unless such Grantor shall have given Agent not less than 30 days' prior
         written notice of such event or occurrence and Agent shall have either
         (x) determined that such event or occurrence will not adversely affect
         the validity, perfection or priority of Agent's security interest in
         the Collateral, or (y) taken such steps (with the cooperation of such
         Grantor to the extent necessary or advisable) as are necessary or
         advisable to properly maintain the validity, perfection and priority of
         Agent's security interest in the Collateral.

                   4.1.8. Other Financing Statements. None of the Grantors will
         authorize the filing of any financing statement naming it as debtor
         covering all or any portion of the Collateral, except as permitted by
         Section 4.1.4.

         4.2. Securities and Documents. Each Grantor will (i) deliver to Agent
immediately upon execution of this Pledge Agreement the originals of all
Securities constituting Collateral (if any then exist) accompanied by
appropriate stock powers executed in blank, (ii) hold in trust for Agent upon
receipt and immediately thereafter deliver to Agent any Securities constituting
Collateral, and (iii) upon Agent's request, after the occurrence and during the
continuance of a Default, deliver to Agent (and thereafter hold in trust for
Agent upon receipt and immediately deliver to Agent) (x) any Document evidencing
or constituting Collateral, (y) any dividends or distributions declared or paid,
in cash or property, upon any of the Pledged Securities or any of the
partnership interests or ownership interests in any limited liability company,
and (z) any payments received, in cash or property, with respect to any
Intercompany Debt.

         4.3. Uncertificated Securities and Certain Other Investment Property.
Each Grantor will permit Agent from time to time to cause the appropriate
issuers (and, if held with a securities intermediary, such securities
intermediary) of uncertificated securities or other types of Investment Property
not represented by certificates which are Pledged Securities to mark their books
and records with the numbers and face amounts of all such uncertificated

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securities or other types of Investment Property not represented by certificates
and all rollovers and replacements therefor to reflect the Lien of Agent granted
pursuant to this Pledge Agreement. Each Grantor will take any actions necessary
to cause (i) the issuers of uncertificated securities which are Collateral and
which are Securities and (ii) any financial intermediary which is the holder of
any Investment Property, to cause Agent to have and retain Control over such
Securities or other Investment Property. Without limiting the foregoing, each
Grantor will, with respect to Investment Property held with a financial
intermediary, cause such financial intermediary to enter into a control
agreement with Agent in form and substance satisfactory to Agent.

         4.4. Stock and Other Ownership Interests.

                  4.4.1. Changes in Capital Structure of Issuers. Except as
         otherwise permitted under the Credit Agreement, none of the Grantors
         will (i) permit or suffer any issuer of privately held corporate
         securities or other ownership interests in a corporation, partnership,
         joint venture or limited liability company constituting Collateral to
         dissolve, liquidate, retire any of its capital stock or other
         Instruments or Securities evidencing ownership, reduce its capital or
         merge or consolidate with any other entity, or (ii) vote any of the
         Securities or other Investment Property in favor of any of the
         foregoing.

                  4.4.2. Issuance of Additional Securities. None of the Grantors
         will permit or suffer the issuer of privately held corporate securities
         or other ownership interests in a corporation, partnership, joint
         venture or limited liability company constituting Collateral to issue
         any such securities or other ownership interests, any right to receive
         the same or any right to receive earnings, except to such Grantor.

                  4.4.3. Registration of Pledged Securities and other Investment
         Property. Each Grantor will permit any registerable Pledged Securities
         or any partnership interest or ownership interest in any limited
         liability company which become a Security to be registered in the name
         of Agent or its nominee at any time after the occurrence and during the
         continuance of a Default at the option of the Required Lenders.

                  4.4.4. Exercise of Rights in Pledged Securities and other
         Investment Property. Each Grantor will permit Agent or its nominee at
         any time after the occurrence and during the continuance of a Default,
         without notice, to exercise all voting and corporate rights relating to
         the Pledged Securities or any partnership interest or ownership
         interest in any limited liability company, including, without
         limitation, exchange, subscription or any other rights, privileges, or
         options pertaining to any corporate securities or other ownership
         interests or Investment Property in or of a corporation, partnership,
         joint venture or limited liability company constituting Collateral and
         the Stock Rights as if it were the absolute owner thereof.

         4.5 Additional Shares. Each Grantor further agrees that it will, upon
obtaining any additional shares of stock, partnership interests, membership
interests or other securities required to be pledged hereunder as provided in
Section 4.4 or as provided in the Credit Agreement, promptly (and in any event
within five Business Days) deliver to Agent a Pledge Amendment, duly executed by
such Grantor, in substantially the form of Schedule II annexed hereto (a "Pledge
Amendment"), in respect of the additional certificates or instruments to be
pledged pursuant to this Pledge Agreement. Each Grantor hereby authorizes Agent

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to attach each Pledge Amendment to this Pledge Agreement and agrees that all
certificates or instruments listed on any Pledge Amendment delivered to Agent
shall for all purposes hereunder be considered Pledged Securities; provided that
the failure of such Grantor to execute a Pledge Amendment with respect to any
additional certificates or instruments pledged pursuant to this Pledge Agreement
shall not impair the security interest of Agent therein or otherwise adversely
affect the rights and remedies of Agent hereunder with respect thereto.

         4.6 Additional Grantors. From time to time subsequent to the date
hereof, additional Persons may become parties hereto as additional Grantors
(each, an "Additional Grantor"), by executing a Counterpart Agreement. Upon
delivery of any such Counterpart Agreement to the Agent, notice of which is
hereby waived by Grantor, each Additional Grantor shall be a Grantor and shall
be as fully a party hereto as if Additional Grantor were an original signatory
hereto. Each Grantor expressly agrees that its obligations arising hereunder
shall not be affected or diminished by the addition or release of any other
Grantor hereunder, nor by any election of Agent not to cause any Subsidiary of
Borrower to become an Additional Grantor hereunder. This Pledge Agreement shall
be fully effective as to any Grantor that is or becomes a party hereto
regardless of whether any other Person becomes or fails to become or ceases to
be a Grantor hereunder.

                                    ARTICLE V

                                     DEFAULT

          5.1. The occurrence of any one or more of the following events shall
constitute a Default:

                   5.1.1. Any representation or warranty made by or on behalf of
         any Grantor under or in connection with this Pledge Agreement shall be
         materially false as of the date on which made.

                   5.1.2. The breach by any Grantor of any of the terms or
         provisions of Article IV.

                   5.1.3. The breach by any Grantor (other than a breach which
         constitutes a Default under Section 5.1.1 or 5.1.2) of any of the terms
         or provisions of this Pledge Agreement which is not remedied within ten
         (10) days after the giving of written notice to such Grantor by Agent.

                   5.1.4. Any of the Intercompany Debt shall be transferred or
         otherwise disposed of to any person other than another Grantor, either
         voluntarily or involuntarily.

                  5.1.5 Any of the Pledged Securities shall be lost, stolen,
         damaged or destroyed unless such event occurs at a time when such
         Pledged Security is in the custody of Agent.

                   5.1.6. The occurrence of any "Default" or "Event of Default"
         under, and as defined in, the Credit Agreement.

                  5.1.7. Any partnership interests or ownership interests in a
         limited liability company which are included within the Collateral
         shall at any time constitute a Security or the issuer of any such
         interests shall take any action to have such interests treated as a
         Security unless (i) all certificates or other documents constituting
         such Security have been delivered to Agent and such Security is
         properly defined as such under Article 8 of the Uniform Commercial Code
         of the applicable jurisdiction, whether as a result of actions by the

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         issuer thereof or otherwise, or (ii) Agent has entered into a control
         agreement with the issuer of such Security or with a securities
         intermediary relating to such Security and such Security is defined as
         such under Article 8 of the Uniform Commercial Code of the applicable
         jurisdiction, whether as a result of actions by the issuer thereof or
         otherwise.

          5.2. Acceleration and Remedies. Upon the acceleration of the
obligations under the Credit Agreement, the Obligations shall immediately become
due and payable without presentment, demand, protest or notice of any kind, all
of which are hereby expressly waived, and Agent may exercise any or all of the
following rights and remedies:

                  5.2.1. Those rights and remedies provided in this Pledge
         Agreement, the Credit Agreement, or any other Loan Document, provided
         that this Section 5.2.1 shall not be understood to limit any rights or
         remedies available to Agent and the Secured Parties prior to a Default.

                  5.2.2. Those rights and remedies available to a Agent under
         the Texas UCC (whether or not the Texas UCC applies to the affected
         Collateral) or under any other applicable law (including, without
         limitation, any law governing the exercise of a bank's right of setoff
         or bankers' lien) when a debtor is in default under a Pledge Agreement.

                  5.2.3. Without notice except as specifically provided in
         Section 8.1 or elsewhere herein, sell, lease, assign, grant an option
         or options to purchase or otherwise dispose of the Collateral or any
         part thereof in one or more parcels at public or private sale, for
         cash, on credit or for future delivery, and upon such other terms as
         Agent may deem commercially reasonable.

Agent, on behalf of the Secured Parties, may comply with any applicable state or
federal law requirements in connection with a disposition of the Collateral and
compliance will not be considered to adversely affect the commercial
reasonableness of any sale of the Collateral.

If, after the Credit Agreement has terminated by its terms and all of the
Obligations have been paid in full, there remain obligations with respect to
Swap Agreements outstanding, the Agent, on behalf of the Secured Parties, may,
at the direction of the Lender Counterparties, exercise the remedies provided in
this Section 5.2 upon the occurrence of any event which would allow or require
the termination or acceleration of any obligations pursuant to the terms of the
agreement governing any Swap Agreement.

          5.3. Debtor's Obligations Upon Default. Upon the request of Agent
after the occurrence of a Default, each Grantor will:

                   5.3.1. Assembly of Collateral. Assemble and make available to
         Agent the Collateral and all records relating thereto at any place or
         places specified by Agent.

                   5.3.2. Agent Access. Permit Agent, by Agent's representatives
         and agents, to enter any premises where all or any part of the
         Collateral, or the books and records relating thereto, or both, are
         located, to take possession of all or any part of the Collateral and to
         remove all or any part of the Collateral.

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                                   ARTICLE VI

                        WAIVERS, AMENDMENTS AND REMEDIES

         No delay or omission of Agent or any Lender to exercise any right or
remedy granted under this Pledge Agreement shall impair such right or remedy or
be construed to be a waiver of any Default or an acquiescence therein, and any
single or partial exercise of any such right or remedy shall not preclude any
other or further exercise thereof or the exercise of any other right or remedy.
No waiver, amendment or other variation of the terms, conditions or provisions
of this Pledge Agreement whatsoever shall be valid unless in writing signed by
Agent with the concurrence or at the direction of the Required Lenders and then
only to the extent in such writing specifically set forth. All rights and
remedies contained in this Pledge Agreement or by law afforded shall be
cumulative and all shall be available to Agent and the Secured Parties until the
Obligations have been paid in full.

                                   ARTICLE VII

                                    PROCEEDS

          7.1. Application of Proceeds. The proceeds of the Collateral shall be
applied by Agent to payment of the Obligations in the order and manner
contemplated by the Loan Documents.

                                  ARTICLE VIII

                               GENERAL PROVISIONS

          8.1. Notice of Disposition of Collateral; Condition of Collateral.
Each Grantor hereby waives notice of the time and place of any public sale or
the time after which any private sale or other disposition of all or any part of
the Collateral may be made. To the extent such notice may not be waived under
applicable law, any notice made shall be deemed reasonable if sent to a Grantor,
addressed as set forth in Article IX, at least ten days prior to (i) the date of
any such public sale or (ii) the time after which any such private sale or other
disposition may be made. Agent shall have no obligation to prepare the
Collateral for sale.

          8.2. Agent Performance of Debtor Obligations. Without having any
obligation to do so, Agent may perform or pay any obligation which a Grantor has
agreed to perform or pay in this Pledge Agreement and such Grantor shall
reimburse Agent for any amounts paid by Agent pursuant to this Section 8.2. The
Grantors' obligations to reimburse Agent pursuant to the preceding sentence
shall be an Obligation payable on demand.

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          8.3. Authorization for Agent to Take Certain Action. Each Grantor
irrevocably authorizes Agent at any time and from time to time in the sole
discretion of Agent and appoints Agent as its attorney in fact (i) to file
financing statements, amendments and continuations necessary or desirable in
Agent's sole discretion to perfect and to maintain the perfection and priority
of Agent's security interest in the Collateral, (ii) to indorse and collect any
cash proceeds of the Collateral, (iii) to file a carbon, photographic or other
reproduction of this Pledge Agreement or any financing statement with respect to
the Collateral as a financing statement and to file any other financing
statement or amendment of a financing statement (which does not add new
collateral or add a debtor) in such offices as Agent in its sole discretion
deems necessary or desirable to perfect and to maintain the perfection and
priority of Agent's security interest in the Collateral, (iv) to contact and
enter into one or more agreements with the issuers of uncertificated securities
which are Collateral and which are Securities or with financial intermediaries
holding other Investment Property as may be necessary or advisable to give Agent
Control over such Securities or other Investment Property, (v) to apply the
proceeds of any Collateral received by Agent to the Obligations as provided in
Article VII and (vi) to discharge past due taxes, assessments, charges, fees or
Liens on the Collateral (except for such Liens as are specifically permitted
hereunder), and Grantor agrees to reimburse Agent on demand for any payment made
or any expense incurred by Agent in connection therewith, provided that this
authorization shall not relieve any Grantor of any of its obligations under this
Pledge Agreement or under the Credit Agreement.

          8.4. Specific Performance of Certain Covenants. Each Grantor
acknowledges and agrees that a breach of any of the covenants contained in
Sections 4.1.5, 4.1.6, 4.2, 5.3, or 8.5 will cause irreparable injury to Agent
and the Secured Parties, that Agent and Secured Parties have no adequate remedy
at law in respect of such breaches and therefore agrees, without limiting the
right of Agent or the Secured Parties to seek and obtain specific performance of
other obligations of Grantor contained in this Pledge Agreement, that the
covenants of such Grantor contained in the Sections referred to in this Section
8.4 shall be specifically enforceable against such Grantor.

          8.5. Dispositions Not Authorized. Except as otherwise permitted under
the Credit Agreement, none of the Grantors is authorized to sell or otherwise
dispose of the Collateral and notwithstanding any course of dealing between any
Grantor and Agent or other conduct of Agent, no authorization to sell or
otherwise dispose of the Collateral shall be binding upon Agent or the Secured
Parties unless such authorization is in writing signed by Agent.

         8.6 Benefit of Agreement. The terms and provisions of this Pledge
Agreement shall be binding upon and inure to the benefit of each Grantor, Agent
and the Secured Parties and their respective successors and assigns (including
all persons who become bound as a debtor to this Pledge Agreement), except that
none of the Grantors shall have the right to assign its rights or delegate its
obligations under this Pledge Agreement or any interest herein, without the
prior written consent of Agent.

         8.7. Survival of Representations. All representations and warranties of
each Grantor contained in this Pledge Agreement shall survive the execution and
delivery of this Pledge Agreement.

         8.8. Taxes and Expenses. Any Taxes (including income taxes) payable or
ruled payable by any Federal or State authority in respect of this Pledge
Agreement shall be paid by Grantors, together with interest and penalties, if
any. Grantors shall reimburse Agent for any and all out-of-pocket expenses and
internal charges (including reasonable attorneys', auditors' and accountants'
fees and reasonable time charges of attorneys, paralegals, auditors and

                                       11
<PAGE>

accountants who may be employees of Agent) paid or incurred by Agent in
connection with the preparation, execution, delivery, administration, collection
and enforcement of this Pledge Agreement and in the audit, analysis,
administration, collection, preservation or sale of the Collateral (including
the expenses and charges associated with any periodic or special audit of the
Collateral). Any and all costs and expenses incurred by Grantors in the
performance of actions required pursuant to the terms hereof shall be borne
solely by Grantors.

         8.9. Headings. The title of and section headings in this Pledge
Agreement are for convenience of reference only, and shall not govern the
interpretation of any of the terms and provisions of this Pledge Agreement.

         8.10. Termination. This Pledge Agreement shall continue in effect
(notwithstanding the fact that from time to time there may be no Obligations
outstanding) until (i) the Credit Agreement has terminated pursuant to its
express terms and (ii) all of the Obligations have been indefeasibly paid and
performed in full and no commitments of Agent or the Lenders which would give
rise to any Obligations are outstanding.

         8.11. Entire Agreement. This Pledge Agreement embodies the entire
agreement and understanding between Grantors and Agent relating to the
Collateral and supersedes all prior agreements and understandings between
Grantors and Agent relating to the Collateral.

         8.12. CHOICE OF LAW. THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS)
OF THE STATE OF TEXAS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.

         8.13. INDEMNITY. EACH GRANTOR HEREBY AGREES TO INDEMNIFY AGENT AND THE
SECURED PARTIES, AND THEIR RESPECTIVE SUCCESSORS, ASSIGNS, AGENTS AND EMPLOYEES,
FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, PENALTIES, SUITS, COSTS, AND
EXPENSES OF ANY KIND AND NATURE (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF
LITIGATION OR PREPARATION THEREFOR WHETHER OR NOT AGENT OR ANY LENDER IS A PARTY
THERETO) IMPOSED ON, INCURRED BY OR ASSERTED AGAINST AGENT OR THE SECURED
PARTIES, OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, AGENTS AND EMPLOYEES, IN ANY
WAY RELATING TO OR ARISING OUT OF THIS PLEDGE AGREEMENT.

                                       12
<PAGE>

                                   ARTICLE IX

                                     NOTICES

          9.1. Sending Notices. Any notice required or permitted to be given
under this Pledge Agreement shall be sent (and deemed received) in the manner
and to the addresses set forth in Section 11.01 of the Credit Agreement.

          9.2. Change in Address for Notices. Agent, Lender or any Grantor may
change the address for service of notice upon it by a notice in writing to the
other parties.

                            (Signature Pages Follow)

                                       13
<PAGE>

         IN WITNESS WHEREOF, Grantors and Agent have executed this Pledge
Agreement as of the date first above written.

                                    GRANTORS:

                            GASCO ENERGY, INC.

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

                            GASCO PRODUCTION COMPANY

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

                            RIVERBEND GAS GATHERING, LLC

                            By: Gasco Energy, Inc.
                                Its Managing Member

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

                            MYTON OILFIELD RENTALS, LLC

                            By: Gasco Energy, Inc.
                                Its Managing Member

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

                                       14
<PAGE>

                                     AGENT:

                                     JPMORGAN CHASE BANK, N.A.

                                     By:  /s/ J. Scott Fowler
                                              ---------------------------------
                                     Name:    J. Scott Fowler
                                     Title:   Vice President

                                     JPMorgan Chase Bank, N.A.
                                     Mail Code IL1-0010
                                     10 South Dearborn Street
                                     Chicago, Illinois 60603
                                     Attention:   Victor Perez
                                     Telephone: (312) 385-7066
                                     Facsimile: (312) 385-7095

                                     with a copy to:
                                     JPMorgan Chase Bank, N.A.
                                     1717 Main Street
                                     Fourth Floor
                                     Dallas, Texas 75201
                                     Attention:  J. Scott Fowler, Vice President
                                     Telephone: (214) 290-2162
                                     Facsimile: (214) 290-2332

                                       15
<PAGE>

                                   EXHIBIT "A"
                   PLACE OF BUSINESS OR CHIEF EXECUTIVE OFFICE

Place of Business (if it has only one) or Chief Executive Office (if more than
one place of business) and Mailing Address:

Gasco Energy, Inc.
8 Inverness Drive East, Suite 100
Englewood, Colorado  80112

Gasco Production Company
8 Inverness Drive East, Suite 100
Englewood, Colorado  80112

Riverbend Gas Gathering, LLC
8 Inverness Drive East, Suite 100
Englewood, Colorado  80112

Myton Oilfield Rentals, LLC
8 Inverness Drive East, Suite 100
Englewood, Colorado  80112

                                       16
<PAGE>

                                   EXHIBIT "B"
                                   OTHER NAMES

-------------------------------------- ----------------------------------------
           GRANTOR                            OTHER NAMES
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
Gasco Energy, Inc                      None
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------

-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
Gasco Production Company               Pannonian Energy, Inc.
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------

-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
Riverbend Gas Gathering, LLC           None
-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------

-------------------------------------- ----------------------------------------
-------------------------------------- ----------------------------------------
Myton Oilfield Rentals, LLC            None
-------------------------------------- ----------------------------------------

                                       17
<PAGE>

                                   EXHIBIT "C"
                     FEDERAL EMPLOYER IDENTIFICATION NUMBER

---------------------------------------- ---------------------------------------
                          GRANTOR        FEDERAL EMPLOYER IDENTIFICATION NUMBER
---------------------------------------- --------------------------------------
---------------------------------------- --------------------------------------
Gasco Energy, Inc.                       98-0204105
---------------------------------------- --------------------------------------
---------------------------------------- --------------------------------------
Gasco Production Company                 84-1461816
---------------------------------------- --------------------------------------
---------------------------------------- --------------------------------------
Riverbend Gas Gathering, LLC             43-2049794
---------------------------------------- --------------------------------------
---------------------------------------- --------------------------------------
Myton Oilfield Rentals, LLC              20-1202389
---------------------------------------- --------------------------------------

                                       18
<PAGE>

                                   EXHIBIT "D"
                           STATE ORGANIZATION NUMBERS

---------------------------------- -------------------------------------------
                          GRANTOR                 STATE ORGANIZATION NUMBER
---------------------------------- -------------------------------------------
---------------------------------- -------------------------------------------
Gasco Energy, Inc.                 Nevada -- Organization No. C8467-1997
---------------------------------- -------------------------------------------
---------------------------------- -------------------------------------------
Gasco Production Company           Delaware - Organization No. 2899291
---------------------------------- -------------------------------------------
---------------------------------- -------------------------------------------
Riverbend Gas Gathering, LLC       Nevada -- Organization No. LLC 4273-2004
---------------------------------- -------------------------------------------
---------------------------------- -------------------------------------------
Myton Oilfield Rentals, LLC        Nevada -- Organization No. LLC 11258-2004
---------------------------------- -------------------------------------------

                                       19
<PAGE>

                                   SCHEDULE I

                           List of Pledged Securities

                              A. STOCKS:

Issuer                           Certificate Number             Number of Shares

Gasco Production Company       Certificate No. 1073 registered in      7,925,000
                                  the name of Gasco Energy, Inc.

                             B. OTHER SECURITIES OR OTHER INVESTMENT
                                PROPERTY (CERTIFICATED AND
                                UNCERTIFICATED):

Issuer                             Certificate Number         Ownership Interest

Riverbend Gas Gathering, LLC    Membership Certificate No. 001      100%
                                 registered in the name of
                                   Gasco Energy, Inc.

Myton Oilfield Rentals, LLC     Membership Certificate No. 001      100%
                                  registered in the name of
                                     Gasco Energy, Inc.

                                       20
<PAGE>

                                   SCHEDULE II

                                PLEDGE AMENDMENT

         This Pledge Amendment, dated [________________] is delivered pursuant
to Section 4.5 of the Pledge Agreement referred to below. The undersigned hereby
agrees that this Pledge Amendment may be attached to the Pledge and Security
Agreement dated as of March 29, 2006, by and among GASCO ENERGY, INC., and each
of the additional Grantors that become a party thereto and JPMORGAN CHASE BANK,
N.A., a national banking association ("Agent"), as administrative agent for the
Secured Parties (the "Pledge Agreement"; capitalized terms defined therein being
used herein as defined therein) and that the Pledged Securities listed on this
Pledge Amendment shall be deemed to be part of the Pledged Securities and shall
become part of the Collateral and shall secure all Obligations.

                               [                 ]

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

                                       21
<PAGE>

                      List of Additional Pledged Securities

                                   A. STOCKS:
Issuer                       Certificate Number                 Number of Shares

                                   B. OTHER SECURITIES OR OTHER INVESTMENT
                                      PROPERTY (CERTIFICATED AND
                                      UNCERTIFICATED):

Issuer                       Description of Collateral        Ownership Interest

                                       22
<PAGE>EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT is entered into as of ________, 2006, between Infe-Human Resources of New York, a Nevada corporation (the “Company”) and Felix Pena (“Executive”). 

RECITAL

The Company and Executive desire to enter into this Agreement to insure the Company of the services of Executive, to provide for compensation and other benefits to be paid and provided by the Company to Executive in connection therewith, and to set forth the rights and duties of the parties in connection therewith; 

NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereby agree as follows: 

1.   Title; Duties.  The Company hereby employs Executive as Vice President of Sales for Infe Human Resources of New York, Inc. and Executive hereby accepts such employment, on the terms and conditions set forth herein. During the term of this Agreement, Executive shall be and have the title, duties and authority of Vice President of Sales for Infe Human Resources of New York, Inc. and shall devote his entire business time and all reasonable efforts to his employment and shall perform diligently such duties as are customarily performed by the Vice President of Sales of companies the size and structure of the Company, together with such other duties as may be reasonably required from time to time by the Board of Directors of the Company or the Chairman of the Company.

      

2.  Term.   Subject to the provisions for termination hereinafter provided, the term of this Agreement shall begin on the date hereof and shall end at 11:59 p.m., local time, on March ___, 2008, provided, however, that the term of this Agreement shall automatically renew for successive one year terms, unless Executive or the Company gives written notice to the other not less than sixty (60) days prior to March ___, 2008 or the expiration of any such one-year term that he or it, as the case may be, is electing not to so extend the term of this Agreement.  Notwithstanding the foregoing, the term of this Agreement shall end on the date on which Executive’s employment is earlier terminated by him or the Company in accordance with the provisions of Paragraph 7(a) below. 

3.  Outside Interests.  Executive shall not, without the prior written consent of the Company, directly or indirectly, during the term of this Agreement, other than in the performance of duties naturally inherent to the business of the Company and in furtherance thereof, render services of a business, professional or commercial nature to any other person or firm, whether for compensation or otherwise; provided, however, that Executive may attend to outside investments, and serve as a director, trustee or officer of, or otherwise participate in, educational, welfare, social, religious and civic organizations so long as such activities do not materially interfere with his full-time employment hereunder. 

4.   Compensation. 

1

(a)  Salary.  For all services he may render to the Company during the term of this Agreement, the Company shall pay to Executive the following salary in those installments customarily used in payment of salaries to the Company’s senior executives (but in no event less frequently than monthly): 

(i)  for calendar year 2006, a salary of fifty Thousand Dollars ($50,000); 

(ii)  for the calendar year beginning on January 1, 2007, and for each calendar year thereafter during the term of this Agreement, a salary determined by the Compensation Committee, which in no event shall be less than the annual salary that was payable by the Company to Executive under this Paragraph 4(a) for the immediately preceding calendar year. 

(b)  Commission.  

(i)

Executive shall be paid a commission of  2% on all "Express Staffing/Agency Sales."  Said commission shall be paid within thirty (30) days after said sale is consummated.  In the event that Executive is instrumental with any "permanent" placement of an Executive level employment to an existing or new account of “Express Staffing/Agency Sales”, the Company shall pay Executive a placement fee equal to 20% of the Placement Fee earned by the Company at such time that the Company receives the total fee from the client company

(ii)

Executive shall apply and all commissions earned as a result of the client “The Candle Company” towards outstanding tax obligations with the Internal Revenue Service which tax obligations were accrued prior to the effective date hereof. 

(c)  Bonus.  Executive shall be entitled to participate in any bonus program implemented by the Compensation Committee of the Board of Directors for the Company’s senior executives generally, with pertinent terms and goals to be established annually or otherwise by the Compensation Committee in its sole discretion. 

(d) Benefits.  Executive shall be entitled, subject to the terms and conditions of the appropriate plans, to all benefits provided by the Company to senior executives generally from time to time during the term of this Agreement. 

(e)  Business Expenses.  Upon delivery of proper documentation therefor Executive shall be reimbursed for all travel, hotel and business expenses when incurred on Company business during the term of this Agreement. 

(f)  Perquisites.  Executive shall be entitled to such perquisites, including use of an automobile, as are provided by the Company to senior executives generally from time to time during the term hereof. 

5.  Executive Stock Awards Plan.  During the term of this Agreement, Executive shall participate in any executive stock award plan the Company’s may adopt.

2

6.  Payment in the Event of Death or Disability. 

(a)  In the event of Executive’s death or Disability during the term of this Agreement, for a period equal to the lesser of (i) twelve (12) months following the date of such death or Disability or (ii) the balance of the term that would have remained hereunder at such date had Executive’s death or disability not occurred, the Company shall continue to pay to Executive (or his estate) Executive’s then effective per annum rate of salary, as determined under Paragraph 4(a), and provide to Executive (or to his family members covered under his family medical coverage) the same family medical coverage as provided to Executive on the date of such death or Disability. 

  

(b)  Except as otherwise provided in Paragraph 6(a), in the event of Executive’s death or Disability Executive’s employment hereunder shall terminate and Executive shall be entitled to no further compensation or other payments or benefits under this Agreement, except as to any unpaid salary, bonus, or benefits accrued and earned by him up to and including the date of such death or Disability. 

(c)  For purposes of this Agreement, Executive’s Disability shall be deemed to have occurred after one hundred fifty (150) days in the aggregate during any consecutive twelve (12) month period, or after ninety (90) consecutive days, during which one hundred fifty (150) or ninety (90) days, as the case may be, Executive, by reason of his physical or mental disability or illness, shall have been unable to discharge his duties hereunder. The date of Disability shall be such one hundred fiftieth (150th) or ninetieth (90th) day, as the case may be. If the Company or Executive, after receipt of notice of Executive’s Disability from the other, dispute that Executive’s Disability shall have occurred, Executive shall promptly submit to a physical examination by the chief of medicine of any major accredited hospital in the Tampa or Clearwater, Florida, metropolitan area selected by the Company and, unless such physician shall issue his written statement to the effect that in his or her opinion, based on his or her diagnosis, Executive is capable of resuming his employment and devoting his full time and energy to discharging his duties within thirty (30) days after the date of such statement, such Disability shall be deemed to have occurred. 

(d)  The payments to be made by the Company to Executive hereunder shall be offset and reduced by the amount of any insurance proceeds (on a tax-effected basis) paid to Executive (or his estate) from insurance policies obtained by the Company other than insurance policies provided under Company-wide employee benefit and welfare plans. 

7.  Termination. 

(a)  The employment of Executive under this Agreement: 

(i) shall be terminated automatically upon the death or Disability of Executive; 

              

 (ii) may be terminated for Cause at any time by the Company, with any such termination not being in limitation of any other right or remedy the Company may have under this Agreement or otherwise; 

3

(iii)  may be terminated at any time by the Company without Cause with 30 days’ advance notice to Executive; 

(iv)  may be terminated at any time by Executive with thirty (30) days’ advance notice to the Company, and shall be terminated automatically if Executive does not accept assumption of this Agreement by, or an offer of employment from, a purchaser of all or substantially all of the assets of the Company, pursuant to terms further described in Paragraph 25 hereof; or 

(v)  may be terminated at any time by Executive if the Company materially breaches this Agreement and fails to cure such breach within thirty (30) days of written notice of such breach from Executive, provided that Executive has given notice of such breach within ninety (90) days after he has knowledge thereof and the Company did not have Cause to terminate Executive at the time such breach occurred. 

 

(b)  Upon any termination hereunder, Executive shall be deemed automatically to have resigned from all offices and any directorship held by him in the Company, unless the Company informs Executive otherwise. 

 

(c)  Executive’s employment with the Company for all purposes shall be deemed to have terminated as of the effective date of such termination hereunder (the “Date of Termination”), irrespective of whether the Company has a continuing obligation under this Agreement to make payments or provide benefits to Executive after such date. 

8.  Certain Termination Payments. 

(a)  If Executive’s employment with the Company is terminated by the Company without Cause or by Executive pursuant to Paragraph 7(a)(v), in either case other than within two years after a Change in Control, the Company shall (i) continue to pay to Executive the per annum rate of salary then in effect under Paragraph 4(a) and provide him and his family with the benefits described in Paragraph 4(c) then in effect (unless the terms of the applicable plans expressly prohibit the continuation of such benefits after such termination and cannot be amended, with applicability of such amendment limited to Executive, to provide for such continuation, in which case the Company shall procure and pay for substantially similar substitute benefits except for any pension or 401(k) Plan benefit) for the balance of the term that would have remained hereunder had such termination not occurred, and (ii) pay Executive on or before the thirtieth day after the Date of Termination an amount equal to the product of (i) the target bonus opportunity for the year in which such termination occurs times (ii) the number of years for which a bonus opportunity would have been provided to him under Paragraph 4(b) hereof had he remained employed hereunder for the remainder of the term of this Agreement. 

 

(b)  If Executive’s employment is terminated by the Company with Cause or is terminated pursuant to Paragraph 7(a)(iv), Executive shall be entitled to no further compensation or other payments or benefits under this Agreement, except as to that portion of any unpaid sal

4

ary and benefits accrued and earned by him under Paragraphs 4(a) and 4(c) hereof up to and including the Date of Termination. 

9.  Change in Control Termination Payments. 

(a)  Executive will be entitled to the compensation set forth in Paragraph 9(b) hereof (the “CIC Compensation”) if his employment is terminated within two years after a Change in Control (i) by the Company without Cause or (ii) by Executive pursuant to Paragraph 7(a)(v) (either (i) or (ii), the “CIC Trigger”). Notwithstanding the foregoing, Executive will not be entitled to CIC Compensation in the event of a termination of his employment following a Change in Control on account of his Death, Disability, Retirement, or termination by him pursuant to Paragraph 7(a)(iv). 

(b)  In the event of a CIC Trigger, Executive shall be entitled to the CIC Compensation provided below: 

(i)  In lieu of any further salary, bonus or other payments to Executive for periods subsequent to the Date of Termination, the Company shall pay to Executive not later than the tenth day following the Date of Termination a cash amount equal to the sum of: (y) an amount equal to two times Executive’s annual base salary in effect on the date of Termination (the “Base Salary”); and (z) an amount equal to two times the sum of (A) the target bonus opportunity in the year of such termination and (B) the contribution, if any, paid by the Company for the benefit of Executive to any 401(k) Plan in the last complete fiscal year of the Company. 

(ii)  Until the earlier of Executive’s death or the end of the twelve (12) month period following the Date of Termination, the Company shall arrange to provide Executive life, health, disability and accident insurance benefits and the package of “Executive benefits” substantially similar to those which Executive was receiving immediately prior to the Date of Termination, or immediately prior to a Change in Control, if greater, provided that Executive shall be obliged to continue to pay that proportion of premiums paid by him immediately prior to the Change in Control. 

(iii)  The Company shall vest and accelerate the exercise date of all stock options, if any, granted to Executive (the “Options”) that are unvested or not exercisable on the Date of Termination, to the end that the Options shall be immediately exercisable for the duration of their respective original terms. 

(iv)  Executive shall have the right within one year following the later of the Change in Control or the exercise of an Option to sell to the Company shares of common stock acquired at any time upon exercise of such Option at a price equal to the average of the closing sale prices of the common stock for the 30 trading days ending on the date prior to the date of the Change in Control. 

(c)  If the CIC Compensation hereunder, either alone or together with other payments to Executive from the Company, would constitute an “excess parachute payment” (as defined in Section 280G of the Internal Revenue Code of 1986, as amended from time to time (the 

5

“Code”)), such CIC Compensation shall be reduced to the largest amount that will result in no portion of the payments hereunder being subject to the excise tax imposed by Section 4999 of the Code or being disallowed as deductions to the Company under Section 280G of the Code. 

10.  Definitions. 

     

(a) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 promulgated under the Exchange Act. 

 

(b) “Cause” means: 

(i)   Executive’s conviction of, or plea of “no contest” to, a felony; 

(ii)  Executive’s willfully engaging in an act or series of acts of gross misconduct that result in demonstrable and material injury to the Company; or 

(iii) Executive’s material breach of any provision of this Agreement, which breach has not been cured in all material respects within twenty (20) days after the Company gives notice thereof to Executive. 

 

(c) “Change in Control” occurs when: 

 

(i)  any “Person” other than any trustee or fiduciary on behalf of any Company benefit plan, becomes the “Beneficial Owner” of securities of the Company having at least 25% of the voting power of the Company’s then outstanding securities (unless the event causing the 25% threshold to be crossed is an acquisition of securities directly from the Company); or 

(ii)  the stockholders of the Company approve any merger or other business combination of the Company, or any going private transaction subject to Rule 13e-3 of the rules and regulations promulgated under the Securities Exchange Act of 1934, or any sale of all or substantially all of the Company’s assets in one or a series of related transactions, or any combination of the foregoing transactions (the “Transactions”); or 

(iii)  within any 24 month period, the persons who were directors immediately before the beginning of such period (the “Disinterested Directors”) cease (for any reason other than death) to constitute at least a majority of the Board or the board of directors of a successor to the Company, with, for this purpose, any director who was not a director at the beginning of such period being deemed to be a Disinterested Director if such director was elected to the Board by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Disinterested Directors, so long as such director was not nominated by a person who has entered into an agreement to effect, or threatened to effect, a Change of Control. 

(d)  “Person” shall have the meaning provided in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d) and 14(d) thereof, and shall include a “group” (as defined in Section 13(d) of the Exchange Act). 

6

(e)  “Retirement” shall mean voluntary, late, normal or early retirement under a pension plan sponsored by the Company, as defined in such plan, or as otherwise defined or determined by the Compensation Committee of the Board of Directors of the Company with respect to senior executives of the Company generally. 

  

11.  Certain Covenants 

     

(a)  Noncompete and Nonsolicitation.  Executive acknowledges the Company’s reliance on and expectation of Executive’s continued commitment to performance of his duties and responsibilities during the term of this Agreement. In light of such reliance and expectation, during the term hereof and for two (2) years after termination of Executive’s employment and this Agreement under Paragraph 7 hereof, other than termination by Executive pursuant to Paragraph 7(a)(v), Executive shall not, directly or indirectly, do or suffer any of the following: 

   

(i)  Own, manage, control or participate in the ownership, management, or control of, or be employed or engaged by or otherwise affiliated or associated as a consultant, independent contractor or otherwise with, any corporation, partnership, proprietorship, firm, association or other business entity, or otherwise engage in any business, which is in competition with the business of the Company as and where conducted by it at the time of such termination; provided, however, that the ownership of not more than five percent (5%) of any class of publicly traded securities of any entity shall not be deemed a violation of this covenant; 

(ii)  Solicit the employment of, assist in the soliciting the employment of, or otherwise solicit the association in business with any person or entity of, any employee, consultant or agent of the Company; or 

 

(iii) Induce any person who is a customer of the Company to terminate said relationship. 

(b)  Nondisclosure; Return of Materials.  During the term of his employment by the Company and following termination of such employment, Executive will not disclose (except as required by his duties to the Company), any concept, design, process, technology, trade secret, customer list, plan, embodiment or invention, any other intellectual property (“Intellectual Property”) or any other confidential information, whether patentable or not, of Company of which Executive becomes informed or aware during his employment, whether or not developed by Executive. In the event of the termination of his employment with the Company or the expiration of this Agreement, Executive will return to the Company all documents, data and other materials of whatever nature, including, without limitation, drawings, specifications, research, reports, embodiments, software and manuals that pertain to his employment with the Company or to any Intellectual Property and shall not retain or cause or allow any third party to retain photocopies or other reproductions of the foregoing. 

(c)  Executive expressly agrees and understands that the remedy at law for any breach by him of this Paragraph 11 may be inadequate and that the damages flowing from such breach are not easily measured in monetary terms. Accordingly, it is acknowledged that, upon 

7

adequate proof of Executive’s violation of any provision of this Paragraph 11, the Company shall be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach and may withhold any amounts owed to Executive pursuant to this Agreement. Nothing in this Paragraph 11 shall be deemed to limit the Company’s remedies at law or in equity for any breach by Executive of any of the provisions of this Paragraph 11 that may be pursued by the Company. 

(d)  If Executive shall violate any legally enforceable provision of this Paragraph 11 as to which there is a specific time period during which he is prohibited from taking certain actions or from engaging in certain activities, as set forth in such provision, then, in such event, such violation shall toll the running of such time period from the date of such violation until such violation shall cease. 

  

(e)  Executive has carefully considered the nature and extent of the restrictions upon him and the rights and remedies conferred upon the Company under this Paragraph 11, and hereby acknowledges and agrees that the same are reasonable in time and territory, are designed to eliminate competition that otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Executive, would not operate as a bar to Executive’s sole means of support, are fully required to protect the legitimate interests of the Company and do not confer a benefit upon the Company disproportionate to the detriment to Executive. 

 

12.  Withholding Taxes.  All payments to Executive hereunder shall be subject to withholding on account of federal, state and local taxes as required by law. 

13.  No Conflicting Agreements. Executive represents and warrants that he is not a party to any agreement, contract or understanding, whether an employment contract or otherwise, that would restrict or prohibit him from undertaking or performing employment in accordance with the terms and conditions of this Agreement. 

14.  Severable Provisions. The provisions of this Agreement are severable and if any one or more of its provisions is determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions and any partially unenforceable provision to the extent enforceable in any jurisdiction nevertheless shall be binding and enforceable. 

15.  Binding Agreement.  The rights and obligations of the Company under this Agreement shall inure to the benefit of, and shall be binding on, the Company and its successors and assigns, and the rights and obligations (other than obligations to perform services) of Executive under this Agreement shall inure to the benefit of, and shall be binding upon, Executive and his heirs, personal and legal representatives, executors, successors and administrators. The Company may assign this Agreement to a purchaser (or an affiliate of a purchaser) of all or substantially all the assets of the Company. As used in this Agreement, the “Company” shall mean the Company as hereinbefore defined and any successor or assign to its assets as aforesaid that becomes bound by all the terms and provisions of this Agreement. If the Executive should die while any amounts are still payable to him, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the Executive’s estate. 

8

16.  Notices.  Notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when sent by certified mail, postage prepaid, addressed to the intended recipient at the address set forth at the end of this Agreement, or at such other address as such intended recipient hereafter may have designated most recently to the other party hereto with specific reference to this Paragraph 16. 

17.  Consent to Jurisdiction.  Executive and the Company each irrevocably: (i) submits to the exclusive jurisdiction of the Florida courts and the United States district court(s) in Florida for the purpose of any proceedings arising out of this Agreement or any transaction contemplated by this Agreement; (ii) agrees not to commence such proceeding except in these courts; (iii) agrees that service of any process, summons, notice or document by U.S. registered mail to a party’s address as provided herein shall be effective service of process for any such proceeding; and (iv) waives any objection to the laying of venue of any such proceeding in these courts. 

18.  Waiver of Jury Trial.  Each party waives, to the fullest extent permitted by law, any right he or it may have to a trial by jury in respect of any suit, action or proceeding arising out of this Agreement or any transaction contemplated by this Agreement. Each party certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce this waiver; and acknowledges that he or it and the other party have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Paragraph 18. 

19.  Waiver.  The failure of either party to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision as to any future violation thereof, or prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted the parties herein are cumulative and the waiver of any single remedy shall not constitute a waiver of such party’s right to assert all other legal remedies available to it under the circumstances. 

20.  Miscellaneous.  This Agreement supersedes all prior agreements and understandings between the parties. This Agreement may not be modified or terminated orally. All obligations and liabilities of each party hereto in favor of the other party hereto relating to matters arising prior to the date hereof have been fully satisfied, paid and discharge. No modification, termination or attempted waiver shall be valid unless in writing and signed by the party against whom the same is sought to be enforced. 

 

21.  Governing Law.  This Agreement shall be governed by and construed according to the laws of the State of Florida. 

22.  Captions and Paragraph Headings. Captions and paragraph headings used herein are for convenience and are not a part of this Agreement and shall not be used in construing it. 

23.  Enforcement Costs.  If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provision of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys' fees, court costs and all expenses even if not taxable as court costs (including, without limitation, all such fees, costs and expenses incident to arbitration, appellate, bankruptcy and post-judgment proceedings), incurred in that action or proceeding, in addition to any other relief to which such party or parties may be entitled.     

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first set forth above

Infe-Human Resources, Inc.:

By:_______________________

Name:_____________________

Title:______________________

_________________________

Felix Pena

9

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