Document:

EX-10.1

EXHIBIT 10.1

ARRAY BIOPHARMA INC.

DESCRIPTION OF PERFORMANCE BONUS PROGRAM

Array BioPharma Inc. (the “Company”) has established an annual performance bonus program for
employees, including the Company’s executive officers. Through this program, employees can receive
an annual bonus payable in cash, stock or stock option equivalents based on achievement of key
Company and individual goals.  There is no guarantee that bonuses will be awarded in any given
year. The bonus program is intended to strengthen the connection between individual compensation
and Company success; reinforce the Company’s pay-for-performance philosophy by awarding higher
bonuses to higher performing employees; and help ensure that the Company’s cash compensation is
competitive.

The Compensation Committee recommends for approval by the independent directors of the Board the
minimum, target and stretch corporate performance goals, and the relative weighting of these goals,
for the upcoming fiscal year. The goals generally are based on the following objective performance
criteria: revenues, earnings per share, year-end cash (which includes upfront fees or milestone
payments that are earned but not received as of year end), discovery research and clinical
development goals with respect to the Company’s proprietary drug programs and transactional goals
relating to outlicensing or strategic partnership transactions. Each participant in the bonus
program may be eligible to receive a target bonus amount calculated by multiplying the
participant’s base salary by a percentage value later assigned to the participant or his or her
position with the Company by the Compensation Committee.

Following the end of each fiscal year, the Compensation Committee determines in its discretion the
extent to which the company-wide and individual performance goals were attained. Based on this
assessment, the Compensation Committee will award bonuses equal to a varying percentage of an
employee’s target bonus amount. The Compensation Committee may award a bonus in an amount less than
or greater than the amount earned by a participant under the bonus program.

Individual bonuses can vary significantly based on performance. Any bonuses for a particular year
are paid as a lump sum in cash, stock or stock option equivalents (or any combination thereof),
less applicable payroll and other withholdings, in the quarter following that year. The plan can be
amended in whole or in part by the Compensation Committee at any time until paid.

*****EX-10.1

AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT

This Amendment No. 2 (“Amendment”) amends that certain Loan and Security Agreement dated as of
September 1, 2009, as amended October 1, 2010, by and between Terry M. Giles and Pacific
Biomarkers, Inc. (the “Agreement”). Capitalized terms used in this Amendment without being defined
shall have their respective meanings set forth in the Agreement.

This Amendment shall be effective as of December 1, 2010 (the “Amendment Effective Date”).
The parties agree as follows:

1. The Interest Rate on the Remaining Amount shall be reduced to 11.5% per annum, and the
amortization schedule for the Remaining Amount shall be restated as Schedule A-1 attached
to this Amendment. The Interest Rate on the Extended Amount shall be unaffected by this Amendment
and the amortization schedule for the Extended Amount shall continue to be as stated in Amendment
No. 1 to the Agreement.

2. Section 5.1 of the Agreement (Events of Default) is amended by adding new subsection (e) as
follows:

“(e) Upon a Change in Control. For purposes of this Section, a Change of Control
shall mean if, at any time that any person, entity or group (as defined in Section 13(d)(3)
of the Securities Exchange Act of 1934, as amended) beneficially owns (as defined in Rule
13d-3 promulgated under the Exchange Act) 25% or more of the voting stock of the Borrower,
there is a change in the Company’s Board of Directors such that a majority of the seats on
the Board are occupied by individuals who (i) were neither nominated or appointed by a
majority of the incumbent directors nor nominated or appointed by directors so nominated or
appointed or (ii) are affiliated or otherwise associated with such person, entity or
group.”

3. Except as expressly amended hereby, the Agreement shall continue in full force and effect
as though set forth in full herein.

4. To the extent this Amendment and the Agreement conflict or are inconsistent, the terms and
conditions of this Amendment shall prevail.

EXECUTED as of the Amendment Effective Date.

	 	 	 	 	 
	BORROWER:	 	PACIFIC BIOMARKERS, INC.
	 	 	a Delaware corporation
	 	 	By:
	 	/s/ Ronald R.Helm

	 	 	 	 	 

	 	 	 	 	Ronald R. Helm

Chief Executive Officer

	 	 	 
	 	

	LENDER:	 	/s/ Terry M. Giles
	 	 	 
	 	 	TERRY M. GILES
	 	

1

SCHEDULE A-1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paid:	 	Payment	 	Interest	 	Principal	 	Note Balance
	12/31/2010
	 	$	84,010.50	 	 	 	22,684.89	 	 	$	61,325.61	 	 	$	2,305,793.41	 
	01/31/2011
	 	$	84,010.50	 	 	 	22,097.19	 	 	$	61,913.32	 	 	$	2,243,880.09	 
	02/28/2011
	 	$	84,010.50	 	 	 	21,503.85	 	 	$	62,506.65	 	 	$	2,181,373.44	 
	03/31/2011
	 	$	84,010.50	 	 	 	20,904.83	 	 	$	63,105.67	 	 	$	2,118,267.76	 
	04/30/2011
	 	$	84,010.50	 	 	 	20,300.07	 	 	$	63,710.44	 	 	$	2,054,557.33	 
	05/31/2011
	 	$	84,010.50	 	 	 	19,689.51	 	 	$	64,321.00	 	 	$	1,990,236.33	 
	06/30/2011
	 	$	84,010.50	 	 	 	19,073.10	 	 	$	64,937.41	 	 	$	1,925,298.92	 
	07/31/2011
	 	$	84,010.50	 	 	 	18,450.78	 	 	$	65,559.72	 	 	$	1,859,739.20	 
	08/31/2011
	 	$	84,010.50	 	 	 	17,822.50	 	 	$	66,188.00	 	 	$	1,793,551.20	 
	09/30/2011
	 	$	84,010.50	 	 	 	17,188.20	 	 	$	66,822.30	 	 	$	1,726,728.89	 
	10/31/2011
	 	$	84,010.50	 	 	 	16,547.82	 	 	$	67,462.68	 	 	$	1,659,266.21	 
	11/30/2011
	 	$	84,010.50	 	 	 	15,901.30	 	 	$	68,109.20	 	 	$	1,591,157.01	 
	12/31/2011
	 	$	84,010.50	 	 	 	15,248.59	 	 	$	68,761.92	 	 	$	1,522,395.09	 
	01/31/2012
	 	$	84,010.50	 	 	 	14,589.62	 	 	$	69,420.88	 	 	$	1,452,974.21	 
	02/29/2012
	 	$	84,010.50	 	 	 	13,924.34	 	 	$	70,086.17	 	 	$	1,382,888.04	 
	03/31/2012
	 	$	84,010.50	 	 	 	13,252.68	 	 	$	70,757.83	 	 	$	1,312,130.21	 
	04/30/2012
	 	$	84,010.50	 	 	 	12,574.58	 	 	$	71,435.92	 	 	$	1,240,694.29	 
	05/31/2012
	 	$	84,010.50	 	 	 	11,889.99	 	 	$	72,120.52	 	 	$	1,168,573.78	 
	06/30/2012
	 	$	84,010.50	 	 	 	11,198.83	 	 	$	72,811.67	 	 	$	1,095,762.10	 
	07/31/2012
	 	$	84,010.50	 	 	 	10,501.05	 	 	$	73,509.45	 	 	$	1,022,252.65	 
	08/31/2012
	 	$	84,010.50	 	 	 	9,796.59	 	 	$	74,213.92	 	 	$	948,038.74	 
	09/30/2012
	 	$	84,010.50	 	 	 	9,085.37	 	 	$	74,925.13	 	 	$	873,113.61	 
	10/31/2012
	 	$	84,010.50	 	 	 	8,367.34	 	 	$	75,643.16	 	 	$	797,470.44	 
	11/30/2012
	 	$	84,010.50	 	 	 	7,642.43	 	 	$	76,368.08	 	 	$	721,102.36	 
	12/31/2012
	 	$	84,010.50	 	 	 	6,910.56	 	 	$	77,099.94	 	 	$	644,002.42	 
	01/31/2013
	 	$	84,010.50	 	 	 	6,171.69	 	 	$	77,838.81	 	 	$	566,163.61	 
	02/28/2013
	 	$	84,010.50	 	 	 	5,425.73	 	 	$	78,584.77	 	 	$	487,578.84	 
	03/31/2013
	 	$	84,010.50	 	 	 	4,672.63	 	 	$	79,337.87	 	 	$	408,240.97	 
	04/30/2013
	 	$	84,010.50	 	 	 	3,912.31	 	 	$	80,098.19	 	 	$	328,142.77	 
	05/31/2013
	 	$	84,010.50	 	 	 	3,144.70	 	 	$	80,865.80	 	 	$	247,276.97	 
	06/30/2013
	 	$	84,010.50	 	 	 	2,369.74	 	 	$	81,640.77	 	 	$	165,636.21	 
	07/31/2013
	 	$	84,010.50	 	 	 	1,587.35	 	 	$	82,423.16	 	 	$	83,213.05	 
	08/31/2013
	 	$	84,010.50	 	 	 	797.46	 	 	$	83,213.05	 	 	$	0.00	 
	TOTAL
	 	$	2,941,635.97	 	 	$	452,356.23	 	 	$	2,489,279.74	 	 	 	 	 

2Exhibit 10.1

                          PURCHASE AND SALE AGREEMENT
                 (OF OIL AND GAS PROPERTIES AND RELATED ASSETS)
             BETWEEN HIGH PLAINS GAS, LLC AND DURAMAX HOLDINGS, LLC

<PAGE>
                                     INDEX
                          PURCHASE AND SALE AGREEMENT
                 (OF OIL AND GAS PROPERTIES AND RELATED ASSETS)

Section

1.     The Properties
2.     Purchase Price
3.     Closing
4.     Effective Date, Proration of Production and Expenses
5.     Taxes
6.     Indemnity
7.     Representation and Warranties of Seller
     7.1     Organization
     7.2     Authority and Conflicts
     7.3     Authorization
     7.4     Enforceability
     7.5     Title
     7.6     Contracts
     7.7     Limitations and Claims
     7.8     Approvals and Preferential Rights
     7.9     Compliance with Law and Permits
     7.10     Status of Contracts
     7.11     Production Burdens, Taxes, Expenses and Revenues
     7.12     Pricing
     7.13     Production Balances
     7.14     Adverse Changes
     7.15     Well Status
     7.16     Equipment
     7.17     Current Commitments
     7.18     Accuracy of Representations
8.     Representations by Buyer
     8.1     Organization
     8.2     Authority
9.     Title and Other Examinations and Curative
10.     Conditions
11.     Transfer, Documentary Taxes, Commissions and Brokerage Fees
12.     Further Assurance, Intent
13.     Notices
14.     Parties in Interest
15.     Complete Agreement
16.     Survival
17.     Termination

<PAGE>
                          PURCHASE AND SALE AGREEMENT
                 (of Oil and Gas Properties and Related Assets)

     High  Plains  Gas,  LLC (including CEP - M Purchase, LLC), as "Seller," and
     --------------------------------------------------------
Duramax  Holdings,  LLC,  as  "Buyer,"  are entering into this Purchase and Sale
-----------------------
Agreement  (the  "Agreement"),  as  evidence  of Seller's agreement to sell, and
Buyer's  agreement  to  buy  the  properties  described  in  and subject to this
Agreement.

     In  consideration  of  the mutual covenants, conditions, and considerations
provided  below,  Buyer  and  Seller  agree  as  follows:

1.     THE  PROPERTIES.  Seller shall assign and convey to Buyer all of Seller's
interest  in  and to the following, all of which are collectively referred to in
this  Agreement  as  (the  "Properties"):

     a.     All  of  Seller's  rights,  title and interests (of whatever kind or
character,  whether legal or equitable, and whether vested or contingent) in and
to  the  oil,  gas and other minerals in and under and that may be produced from
the  lands  described in Exhibit "A" including, without limitation, interests in
oil,  gas  and/or  mineral  leases  covering  any  part of the lands, overriding
royalty  interests,  production payments, and net profits interests in  any part
of  the lands or leases, fee royalty interests, fee mineral interests, and other
interests  in  oil, gas and other minerals in any part of the lands, whether the
lands  are  described  in  any  of the descriptions set out in Exhibit "A" or by
reference  to  another  instrument  for  description,  even  though the Seller's
interests  may  be  incorrectly  described  in,  or  omitted  from, Exhibit "A";

     b.     All  right, title, and interests of Seller in all presently existing
and  valid  oil, gas and/or mineral unitization, pooling, and/or communitization
agreements,  declarations,  and/or orders and the properties covered or included
in  the  units (including, without limitation, units formed under orders, rules,
regulations,  or  other  official  acts of any federal, state or other authority
having  jurisdiction,  voluntary  unitization  agreements,  designations, and/or
declarations,  and  any  "working  interest  units"  (created  under  operating
agreements  or  otherwise)  which  relate  to any of the Properties described in
subparagraph  a.  above;

     c.     All  rights, title and interests of Seller in all presently existing
and  valid production sales (and sales related) contracts, operating agreements,
and  other  agreements  and  contracts  which  relate  to  any of the Properties
described  in subparagraphs a. and b. above, or which relate to the exploration,
development,  operation,  or  maintenance  of  the  Properties or the treatment,
storage,  transportation,  or  marketing  of production from or allocated to the
Properties;  and,

     d.     All  rights,  title and interests of Seller in and to all materials,
supplies,  machinery,  equipment,  improvements, and other personal property and
fixtures  (including,  but  not  limited  to the Properties, all wells, wellhead
equipment,  pumping  units,  flow lines, tanks, buildings, injection facilities,
salt  water  disposal facilities, compression facilities, gathering systems, and
other  equipment),  all  easements,  rights-of-way,  surface  leases,  and other
surface  rights,  all permits and licenses, and all other appurtenances, used or
held  for  use  in  connection  with  or

<PAGE>
related to the exploration, development, operation, or maintenance of any of the
Properties  described  in  subparagraphs  a.  and  b.  above,  or the treatment,
storage,  transportation,  or  marketing  of production from or allocated to the
Properties.

2.     PURCHASE  PRICE.  Buyer  shall  deliver  to Seller at Closing, the sum of
Five  Million  Three  Hundred  Thousand  Dollars  ($5,300,000.00) (the "Purchase
Price"),  subject to the adjustment provided for below.  Buyer shall deposit the
sum  of  One  Hundred  Thousand Dollars ($100,000) in Seller's attorney's Client
Trust  Account on or before December 1, 2010, to be applied against the Purchase
Price  at Closing.  In the event the Closing does not occur by December 31, 2010
Buyer  may  request a refund of the original Deposit or the Buyer may request an
extension  of  the  contract  for  30  days  at which time Buyer will deposit an
additional  One  Hundred  Thousand  Dollars ($100,000.00), non-refundable, to be
applied  against  the  Purchase  Price  at Closing, and the original One Hundred
Thousand  Dollar ($100,000.00) deposit will be considered non-refundable. In the
event  the  Closing  does  not occur prior to January 31, 20011, the Buyer shall
have  the option to request an extension of the contract for 30 days and deposit
another  One  Hundred  Thousand  Dollars  ($100,000.00),  non-refundable,  to be
applied  against  the Purchase Price at Closing. If additional time is requested
by  the  Buyer  in  order  to close, the Seller requests a serious conversation.

3.     CLOSING.  The  sale  and purchase of the Properties (the "Closing") shall
be  on  December  18, 2010 (the "Closing Date") at Seller's offices in Gillette,
Wyoming,  or such other place and time as Buyer and Seller shall mutually agree.
At Closing Seller shall deliver to Buyer executed assignments and instruments of
conveyance  of  the  Properties in form similar to those attached as Exhibit "B"
and  Buyer  shall deliver to Seller the Purchase Price in the manner provided in
Section  2.

4.     EFFECTIVE  DATE, PRORATION OF PRODUCTION AND EXPENSES.  The conveyance by
Seller  shall  be  effective  as  of 7 a.m. local time, where the Properties are
located,  on  December 1, 2010 (the "Effective Date").   All production from the
Properties  and  all proceeds from the sale of production prior to the Effective
Date  shall  be the property of Seller.  Seller shall be responsible for payment
of  all  expenses  attributable  to  the Properties prior to the Effective Date.
Buyer  shall  be  responsible  for  payment  of all expenses attributable to the
Properties  after  the  Effective  Date.  An  accounting  for  net proceeds from
production  less  applicable  expenses  will  be  made according to a Settlement
Agreement  in  form  and  substance similar to the Agreement in Exhibit "C."  In
addition  to  the  adjustments  made by the Agreement (Exhibit "C"), the Parties
acknowledge  that  Seller  has  prior  to  Closing  made payment for the Bonding
required  for  the  WOGCC,  DEQ and BLM and Seller agrees to leave such Bonds in
place  as they apply to and are required for the operation of The Properties for
at  least  one year. In the event that any State or Governmental agency does not
allow  the  Seller to maintain the bonds after the Closing then the Buyer agrees
to  furnish  the required bonds at the Buyers expense and release Sellers bonds.
In  any event, prior to the first annual anniversary of the Closing, Buyer shall
secure  its  own  bonding  and  cause  Seller's  bonds  to  be  released.

<PAGE>
5.     TAXES.  Seller  shall  be  responsible  for  all  taxes  relating  to the
Properties  prior  to  the  Effective  Date.  Buyer shall be responsible for all
taxes (exclusive of federal, state or local income taxes due by Seller) relating
to  the  Property  from  and  after  the  Effective  Date.

6.     INDEMNITY.  Seller  shall  indemnify  and  hold  Buyer,  its  directors,
officers, employees, and agents harmless from and against any and all liability,
liens,  demands,  judgments,  suits, and claims of any kind or character arising
out  of,  in  connection  with,  or  resulting  from  Seller's  ownership of the
Properties,  for  all  periods prior to the Effective Date.  Seller shall remain
responsible  for all claims relating to the drilling, operating, production, and
sale  of  hydrocarbons from the Properties and the proper accounting and payment
to  parties  for  their  interests  and  any  retroactive  payments, refunds, or
penalties  to  any  party  or entity, insofar as any claims relate to periods of
time  prior  to  the  Effective  Date.

     Buyer shall indemnify and hold Seller harmless from and against any and all
liability, liens, demands, judgments, suits, and claims of any kind or character
arising  out  of, in connection with, or resulting from Buyer's ownership of the
Properties,  for  periods  from  and  after  the Effective Date.  Buyer shall be
responsible  for all claims relating to the drilling, operating, production, and
sale  of  hydrocarbons from the Properties and the proper accounting and payment
to  parties  for  their  interests,  and  any  retroactive payments, refunds, or
penalties to any party or entity as such claims relate to periods from and after
the  Effective  Date.

     Buyer  and Seller shall have the right to participate in the defense of any
suit  in  which  one of them may be a party without relieving the other party of
the  obligation  to  defend  the  suit.

7.     REPRESENTATIONS AND WARRANTIES OF SELLER.  Seller represents and warrants
to  Buyer  as  follows:

     7.1.     ORGANIZATION.  Seller  is  a  corporation  duly organized, validly
              ------------
existing,  and  in good standing under the laws of the State of Wyoming.  Seller
is  qualified  to  do business in and is in good standing under the laws of each
state  in  which  the  Properties  are  located.

     7.2.     AUTHORITY  AND  CONFLICTS.  Seller  has  full  corporate power and
              -------------------------
authority  to  carry  on its business as presently conducted, to enter into this
Agreement,  and  to perform its obligations under this Agreement.  The execution
and  delivery  of this Agreement by Seller does not, and the consummation of the
transactions  contemplated  by  this Agreement shall not:  (a) violate, conflict
with,  or  require  the  consent  of any person or entity under any provision of
Seller's  Articles  of Incorporation or bylaws or other governing documents; (b)
conflict  with,  result  in  a breach of, constitute a default (or an event that
with  the lapse of time or notice or both would constitute a default) or require
any  consent,  authorization,  or  approval under any agreement or instrument to
which  Seller  is  a party or to which any of the Properties or Seller is bound,
except  as disclosed in Exhibit "A"; (c) violate any provision of or require any
consent,  authorization,  or  approval  under  any judgment, decree, judicial or
administrative  order,  award,

<PAGE>
writ,  injunction,  statute,  rule,  or regulation applicable to Seller; or, (d)
result  in  the  creation  of  any  lien,  charge,  or encumbrance on any of the
Properties.

     7.3.     AUTHORIZATION.  The  execution  and delivery of this Agreement has
              -------------
been, and the performance of this Agreement and the transactions contemplated by
this  Agreement  shall be at the time required to be performed, duly and validly
authorized  by  all  requisite  corporate  action  on  the  part  of  Seller.

     7.4.     ENFORCEABILITY.  This  Agreement  has  been  duly  executed  and
              --------------
delivered  on  behalf of Seller and constitutes the legal and binding obligation
of Seller enforceable in accordance with its terms, except as enforceability may
be  limited  by  applicable  bankruptcy,  reorganization, or moratorium statues,
equitable  principles,  or  other similar laws affecting the rights of creditors
generally  ("Equitable Limitations").  At Closing, all documents and instruments
required  to  be  executed  and  delivered  by Seller shall be duly executed and
delivered  and  shall  constitute  legal,  valid,  enforceable,  and  binding
obligations  of  Seller,  except  as  enforceability may be limited by Equitable
Limitations.

     7.5.     TITLE.
              -----

          7.5.1.  Seller has Marketable title to the Property.  For the purposes
of  this  Agreement, "Marketable Title" means such title that will enable Buyer,
as  Seller's successor in title, to receive from each of the Properties at least
the  "Net  Revenue  Interest" for the wells identified on Exhibit "A" associated
with  each  of  the  Properties,  without  reduction, suspension, or termination
throughout  the  productive  life  of  the  wells,  except  for  any  reduction,
suspension,  or  termination:  (a)  caused  by  Buyer,  any  of  its  affiliates
successors  in  title  or  assigns;  (b)  caused  by  orders  of the appropriate
regulatory agency having jurisdiction over a Property that are promulgated after
the  Effective  Date  and that concern pooling, unitization, communitization, or
spacing  matters  affecting  a Property; (c) caused by any contract described in
Exhibit  "A"  containing  a sliding-scale royalty clause or other similar clause
with  respect  to a production burden associated with a particular Property; or,
(d)  otherwise set out in Exhibit "A."  "Marketable Title" also means title that
will obligate Buyer, as Seller's successor in title, to bear no greater "Working
Interest"  than the Working Interest for each of the wells identified on Exhibit
"A" as being associated with each of the Properties, without increase throughout
the  productive life of the wells, except for any increase: (a) caused by Buyer,
any  of its affiliates, successors in title or assigns; (b) that also results in
the  Net  Revenue  Interest  associated  with  the  well  being  proportionately
increased; (c) caused by contribution requirements provided for under provisions
similar  to  those  contained  in  the  A.A.P.L.  Form 610, Model Form Operating
Agreement;  (d)  caused  by  orders  of the appropriate regulatory agency having
jurisdiction  over  a Property that are promulgated after the Effective Date and
that concern pooling, unitization, communitization, or spacing matters affecting
a  particular Property; or, (e) otherwise set forth in Exhibit "A."  "Marketable
Title"  means  the  Properties  are  free  and clear of all encumbrances, liens,
claims,  easements,  rights,  agreements,  instruments, obligations, burdens, or
defects  (collectively  the  "Liens"),  except  for  Permitted  Encumbrances.

<PAGE>

          7.5.2.  For  the  purposes of this Agreement, "Permitted Encumbrances"
means:  (a)  liens  for  taxes  not  yet  delinquent;  (b)  lessor's  royalties,
overriding  royalties,  reversionary  interests, and similar burdens that do not
operate to reduce the Net Revenue Interest of Seller in any of the Properties to
less  than  the  amount  set  forth  on Exhibit "A"; (c) the consents and rights
described in Exhibit "A" insofar as such contracts and agreements do not operate
to  increase the Working Interest of Seller or decrease the Net Revenue Interest
of  Seller,  as  set  forth  on  Exhibit  "A,"  for  any  of  the  Properties.

          7.5.3.  Seller has good and defensible title, subject to the Permitted
Encumbrances,  to  all  of  the  Properties.

     7.6.     CONTRACTS.  Exhibit "A" contains a complete list of all contracts,
              ---------
agreements, undertakings (whether written or oral), and instruments that are not
described  in  any other Exhibit to this Agreement that constitute a part of the
Properties  or by which the Properties are bound or subject.  To the extent that
such  contracts  apply to both The Properties acquired by Buyer and other assets
retained by Seller, such as Firm Transportation Contracts, Seller will assign to
Buyer  a  pro-rata  share  of such pipeline capacity to allow Buyer to transport
their  production.

     7.7.     LITIGATION  AND CLAIMS.  Except as is set forth on Exhibit "D," no
              ----------------------
claim,  demand,  filing, cause of action, administrative proceeding, lawsuit, or
other  litigation  is  pending,  or to the best knowledge of Seller, threatened,
that  could  now  or later adversely affect the ownership or operation of any of
the Properties, other than proceedings relating to the industry generally and to
which  Seller  is  not  a  named  party.  No  written  or  oral  notice from any
governmental  agency  or  any  other  person  has  been received by Seller:  (a)
claiming  any  violation  or repudiation of all or any part of the Properties or
any  violation of any law or any environmental, conservation or other ordinance,
code,  rule  or regulation; or, (b) require or calling attention to the need for
any  work,  repairs,  construction,  alterations,  or  installations  on  or  in
connection  with  the Properties, with which Seller has not complied, or will be
able  to  comply  as  of  the  Closing.

     7.8.     APPROVALS  AND  PREFERENTIAL  RIGHTS.  Exhibit  "E"  contains  a
              ------------------------------------
complete  and  accurate  schedule  of  all  approvals required to be obtained by
Seller  for  the  assignment  of  the  Properties to Buyer, and all preferential
purchase  rights  that  affect  the  Properties.

     7.9.     COMPLIANCE  WITH  LAW  AND  PERMITS.  The  Properties  have  been
              -----------------------------------
operated in compliance with the provision and requirements of the applicable oil
and  gas leases, and all laws, orders, regulations, rules, and ordinances issued
or  promulgated by all governmental authorities having jurisdiction with respect
to  the Properties.  All necessary governmental certificates, consents, permits,
licenses,  or  other authorizations with regard to the ownership or operation of
the  Properties have been obtained and no violations exist or have been recorded
in  respect  of such licenses, permits or authorizations.  None of the documents
and materials filed with or furnished to any governmental authority with respect
to  the  Properties  contains  any  untrue

<PAGE>
statement of a material fact or omits any statement of a material fact necessary
to  make  the  statement  not  misleading.

     7.10.  STATUS  OF CONTRACTS.  All of the Contracts and other obligations of
            --------------------
Seller  relating  to the Properties are in full force and effect.  Seller has no
knowledge  of any other party being in breach of or default of the Contracts, to
the extent any breach or default has an adverse impact on any of the Properties.
To  Seller's knowledge, no other party has given or threatened to give notice of
any  default,  inquired  into  any  possible  default, or taken action to alter,
terminate,  rescind,  or procure a judicial reformation of any Contract.  Seller
does  not anticipate any other party to a Contract will be in breach of, default
under,  or  repudiate  any  of its obligations of a Contract, to the extent such
breach,  default,  or  repudiation  will  have  an  adverse impact on any of the
Properties.

     7.11.  PRODUCTION  BURDENS,  TAXES,  EXPENSES  AND  REVENUES.  All rentals,
            -----------------------------------------------------
royalties,  excess royalty, overriding royalty interests, and other payments due
under or with respect to the Properties have been properly and timely paid.  All
ad  valorem,  property,  production,  severance,  and  other  taxes  based on or
measured  by  the  ownership  of  the  Properties  or  the  production  from the
Properties  have  been properly and timely paid.  All expenses payable under the
terms  of  the Contracts identified in Exhibit "A" have been properly and timely
paid  except  for expenses currently paid, prior to delinquency, in the ordinary
course of business.  All proceeds from the sale of production are being properly
and  timely  paid  to  Seller by the purchasers of production, without suspense.

     7.12. PRICING.  The prices being received for production do not violate any
           -------
contract,  law or regulation.  Where applicable, all of the wells and production
from  the  wells  have  been  properly classified under appropriate governmental
regulations.

     7.13.  PRODUCTION BALANCES.  Except as described in Schedule 7.13., none of
            -------------------
the  purchasers under any production sales contracts are entitled to "makeup" or
otherwise  receive deliveries of oil or gas at any time after the Effective Date
without paying, at such time, the full contract price for oil or gas.  No person
is  entitled to receive any portion of the interest of Seller in any oil or gas,
or  to  receive  cash  or  other  payments  to  "balance"  any  disproportionate
allocation  of  oil  or  gas  under  any  operating agreement, gas balancing and
storage  agreement,  gas  processing  or dehydration agreement, or other similar
agreements.

     7.14.  ADVERSE  CHANGES.  Since  the  execution  of  this  Agreement,  the
            ----------------
Properties,  viewed  as  a whole, have not experienced any material reduction in
the rate of production, other than changes in the ordinary course of operations,
changes  that  result  from  depletion in the ordinary course of operations, and
changes  that result from variances in markets for oil and gas production.  None
of  the  Properties  have  suffered  any  material  destruction, damage or loss.

     7.15. WELL STATUS.  There are no wells located on the Properties that:  (a)
           -----------
Seller is currently obligated by law or contract to plug and abandon; (b) Seller
will  not  be  obligated  by

<PAGE>
law  or  contract  to  plug  or abandon with the lapse of time or notice or both
because the well is not currently capable of producing in commercial quantities;
(c)  are  subject to exceptions to a requirement to plug and abandon issued by a
regulatory  authority  having  jurisdiction  over the Properties; or, (d) to the
best  knowledge  of  Seller,  have  been plugged and abandoned but have not been
plugged  in  accordance  with  all  applicable  requirements  of each regulatory
authority  having  jurisdiction  over  the  Properties.

     7.16. EQUIPMENT.  Although the Seller believes the equipment constituting a
           ---------
part  of  the  Properties  is  in  good  repair,  working  order,  and operating
condition, and is adequate for the operation of the Properties, the Seller makes
no  warranty, expressed or implied, as to the working condition of the equipment
and  any  and  all  equipment  is  sold  as-is-where-is.

     7.17.  CURRENT  COMMITMENTS.  Exhibit "F" contains a true and complete list
            --------------------
of:  (a)  all  authorities  for  expenditure  ("AFEs") and other oral or written
commitments  to  drill  or  rework  wells  on  the  Properties  or  for  capital
expenditures pursuant to any Contracts, that have been proposed by any person on
or  after  the  Effective  Date,  whether or not accepted by Seller or any other
person;  and,  (b)  all  AFEs and oral or written commitments to drill or rework
wells or for other capital expenditures pursuant to any Contracts, for which all
of  the activities anticipated in AFEs or commitments have not been completed by
the  date  of  this  Agreement.

     7.18.  ACCURACY OF REPRESENTATION.  No representation or warranty by Seller
            --------------------------
in  this  Agreement or any agreement or document delivered by Seller pursuant to
this Agreement contains an untrue statement of a material fact or omits to state
a material fact necessary to make the statements contained in any representation
or  warranty,  in  light  of  the  circumstances  under  which  it was made, not
misleading.  There  is  no  fact  known  to Seller that materially and adversely
affects,  or  may  materially  and  adversely affect the operation, prospects or
condition  of any portion of the Properties that has not been identified in this
Agreement.

8.     REPRESENTATIONS  BY BUYER.  Buyer represents to Seller that the following
statements  are  true  and  correct:

     8.1.     ORGANIZATION.  Buyer  is  a Wyoming limited liability company duly
              ------------
organized,  in  good  standing,  and  qualified to carry on its business in each
state  in  which  the Properties are located, and has the power and authority to
carry  on  its  business as presently conducted, to own and hold the Properties,
and  to  perform  all  obligations  required  by  this  Agreement.

     8.2.     AUTHORITY.  Pursuant  to  its  bylaws  and  certificate  of
              ---------
organization,  Buyer  has  the power and authority to acquire, own, and hold the
Properties  and  to  perform  the  obligations  required  by  this  Agreement.

<PAGE>
9.     TITLE  AND  OTHER  EXAMINATIONS  AND  CURATIVE.

     9.1.  Prior  to Closing, Buyer shall examine title to the Properties at its
own  expense.  However,  Seller  shall  make  available to Buyer all of Seller's
title  opinions,  certificates of title, abstracts of title, title data, records
and  files  relating  to  the  Properties (including without limitation all well
files  and  well  logs)  and  information  relating to the Properties as soon as
possible  after  the  execution  of  this  Agreement.  Seller  will, at Seller's
expense, use Seller's best efforts to promptly cure all title defects discovered
by  Buyer and obtain all consents and waivers of preferential or other rights to
purchase  from  third  parties and governmental authorities as in the opinion of
Buyer may  be desirable or necessary to the conveyance, assignment, and transfer
to  Buyer  of  the  Properties.  In  the  event  title  to the Properties is not
satisfactory,  or if the Properties are otherwise not as represented, Buyer may,
at its option, either terminate this Agreement at any time on or before Closing,
or  reduce  the  Purchase  Price by an amount agreeable to both parties.  Seller
shall promptly furnish Buyer a copy of all gas contracts, gas transportation and
treating  agreements,  operating  agreements  and  all  amendments  to each, and
provide  a  schedule  showing  the  status of any gas balancing, take or pay, or
other  similar  arrangements.

     9.2.     If  Buyer's  review  and  appraisal  of  the  data,  Contracts and
agreements  reflects  such  data,  Contracts,  or  agreements  are  materially
different,  and  that  such  difference  results in a material difference in the
value  of  the  Properties, from those assumed by Buyer at the time of itsoffer,
Buyer  shall  have the option to either terminate this Agreement without penalty
or  request  renegotiations  of the Purchase Price, or agree to replacement with
other  acreage acceptable to Buyer,  to reflect the adverse changes.  Except for
title  matters,  Buyer  must  exercise  this option, if applicable, on or before
Closing,  or  any  material  differences  shall  be  deemed  waived, but without
prejudice  to  Buyer's  other  rights  under  this  Agreement.

10.     CONDITIONS.  The  consummation  of the sale and purchase contemplated by
this  Agreement  will  be  subject  to  the  following  conditions:

     10.1.     The representations and warranties by Seller set forth in Section
7  shall  be  true and correct in all material respects as of the date when made
and  as  of  the  Closing.

     10.2.     There shall have been no material adverse change in the condition
of  the  Properties except depletion through normal production within authorized
allowables  and  rates of production, depreciation of equipment through ordinary
wear and tear, and other transactions permitted under this Agreement or approved
in  writing  by  Buyer  between  the  date  of  this  Agreement  and  Closing.

     10.3.     All  requirements  made  by  Buyer  with  regard  to title to the
Properties  shall  have  been fully satisfied or waived by Buyer.  All consents,
approvals  and authorizations of assignments, and waivers of preferential rights
to  purchase  required  by  Buyer  shall  have been submitted to and approved by
Buyer.

<PAGE>
     10.4.     Seller  and  Buyer understand and agree that if: (1) title to the
Properties  is  not  satisfactory to Buyer; (2) Seller's actual interests in the
Properties  is different than as represented by Seller and the difference causes
a  diminution  in  Seller's  net  revenue interest of more than two (2%) of that
which  Seller  represents  to  own; (3) contracts, claims or litigation to which
Buyer  takes  exception are material; or, (4) Seller fails to comply with any of
the  conditions  set  forth  in this Agreement; Buyer may, at its option, either
terminate  this  Agreement  at  any  time  on  or  before Closing, or reduce the
Purchase  Price  by  an  amount agreeable to both parties or substitute property
acceptable  to  Buyer.  However, any reduction in Seller's net revenue interests
below  that  which  is  represented  in Exhibit "A" shall result in an automatic
reduction  in  the  Purchase  Price  commensurate with the reduction in such net
revenue  interest.

     10.5.     The  parties shall have performed or complied with all agreements
and  covenants  required by this Agreement of which performance or compliance is
required  prior  to  or  at  Closing.

     10.6.     All  legal matters in connection with and the consummation of the
transactions  contemplated  by  this  Agreement shall be approved by counsel for
Buyer and there shall have been furnished by Seller such records and information
as  Buyer's  counsel  may  reasonably  request  for  that  purpose.

     10.7.     Notwithstanding  anything  to  the contrary in this Agreement, at
Buyer's  option,  Buyer  shall  have  the  unilateral  right  to  terminate this
Agreement  not  later  than  Closing  if  Buyer  determines it does not have the
rights  to  obtain  and  maintain  the  rights  to be Operator of the Properties
pursuant  to  existing  Operating  Agreements  at  Closing.  Operations shall be
transferred  from  Seller  to  Buyer  at  Closing.

11.     TRANSFER,  DOCUMENTARY  TAXES,  COMMISSIONS, AND BROKERAGE FEES.  Seller
shall  pay  and  bear  all  documentary  or  transfer  taxes resulting from this
transaction.  No  commission  or  brokerage  fees  will  be  paid  by  Buyer  in
connection with this transaction.  Seller will indemnify and hold Buyer harmless
from  any  claims of brokers or finders acting, or claiming to be have acted, on
behalf  of  Seller.

12.     FURTHER  ASSURANCES,  INTENT.  It  is Seller's intent to convey to Buyer
all  of  Seller's  interests, legal, beneficial, or equitable in the Properties.
Seller  agrees to execute and deliver to Buyer all instruments, conveyances, and
other  documents  and to do such other acts not inconsistent with this Agreement
as  may  be  necessary  or  advisable  to  carry  out  Seller's  intent.

13.     NOTICES.  At notices and communications required or permitted under this
Agreement  shall  be  in  writing,  delivered to or sent by U.S. Mail or Express
Delivery,  postage  prepaid,  or  by prepaid telegram, or facsimile addressed as
follows:

          Seller: High Plains Gas, LLC; 105 W. Lakeway Road; Gillette, WY 82718

          Buyer: Duramax Holdings, LLC; P.O. Box 634; Cheyenne, WY 82003

<PAGE>
14.     PARTIES  IN  INTEREST.  This Agreement shall inure to the benefit of and
be  binding  upon  Seller and Buyer and their respective successors and assigns.
However,  no  assignment  by  any party shall relieve any party of any duties or
obligations  under  this  Agreement.

15.     COMPLETE  AGREEMENT.  This  Agreement constitutes the complete agreement
between  the  parties  regarding the purchase and sale of the Properties.  Where
applicable,  all  of  the  terms  of  this  Agreement shall survive the Closing.

16.     SURVIVAL.  All representatives and warranties in this Agreement shall be
deemed conditions to the Closing.  The representatives and warranties recited in
Section  7.  shall  not  survive  the  Closing  except  for:  (Identify  those
Representations  and  Warranties that will Survive Closing.)  All other terms of
Agreement  shall  survive  the  Closing,  including,  but  not  limited  to, the
indemnification  and  hold  harmless  provisions  contained  in  Section  6.

17.     TERMINATION.  Should either party terminate this Agreement pursuant to a
right  granted  in  this  Agreement  to  do so, the termination shall be without
liability  to  the  other  party,  and  the  non-terminating party shall have no
liability  to  the  terminating  party.

                              HIGH  PLAINS  GAS,  LLC,  SELLER

                              by   \s\ Mark Hettinger
                                   ------------------
                                   Mark  Hettinger,  Managing  Member

                              DURAMAX  HOLDINGS,  LLC,  BUYER

                              by   \s\ James Kintz
                                   ---------------
                                   James  Kintz,  Authorized  Agent

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