Document:

<PAGE>

EXHIBIT 10.26

                          PATENT RIGHTS PURCHASE & SALE
                          -----------------------------
                                    AGREEMENT
                                    ---------

                                   A. PARTIES

         This agreement is entered into this 11th day of July, 2005 by and
between Ingen Technologies, Inc., a Georgia corporation doing business in
California ("Ingen") and Francis McDermott, a resident of California
("grantor").

                            B. RECITALS AND SUMMARY

         Ingen is in the business of providing oxygen sensing and warning
technology to medical, private and governmental markets. Grantor is the inventor
of certain technology utilized by Ingen in the design and manufacture of its
BAFI and OxyAlert product lines. The technology is patented. United States
Patents No. 6,326,896 B1 (December 4, 2001) and No. 6,137,417 (October 24, 2000)
("the patents") are attached as exhibits "A" and "B," respectively, hereto (and
incorporated herein as a part hereof by this reference). The parties entered
into an exclusive licensing agreement for use of the patents on or about June
24th, 1999 ("licensing agreement" - see Exhibit "C" hereto, incorporated herein
as a part hereof by this reference). Grantor is selling all of his right, title
and interest in the patents to Ingen as provided in this Agreement.

                      C. PURCHASE & SALE; PRICE AND TERMS

         Grantor hereby sells and Ingen hereby purchases all right and title of
grantor to the patents, including, but not limited to, the patents themselves
and foreign rights of priority for both patents. Grantor represents and warrants
that except for the licensing agreement attached hereto as Exhibit "C," there
are no encumbrances of any nature or kind on the patents and all rights of any
nature thereto, and further, that grantor is conveying full right and title to
the patents and all rights of any nature thereto to Ingen (devoid of any
infringement problems and all claims by other parties, private and
governmental).

         Ingen, in acquiring full right and title to the patents and all rights
of any nature thereto, is free to utilize all such rights and title to the
fullest extent permitted by law. However, any use of the technology as embodied
in the patents is subject to this Agreement, including, but not limited to (as
required) the payment of the royalty in C. 3. below.

         There are 3 components to the purchase price for the patents and all
rights as aforesaid:

                                       1
<PAGE>

         1.       Ten thousand dollars ($10,000) (U.S.), payable in full upon
                  the signing of this agreement.

         2.       The issuance of two million (2,000,000) shares of restricted
                  common shares of Ingen; the stock certificate to be issued as
                  soon as is practical (after the signing of this Agreement) by
                  Ingen's transfer agent.

         3.       Payment of four percent (4%) of the gross profits of all
                  products of Ingen utilizing the technology embodied within the
                  patents (if and when any such royalties become due). Payment
                  shall be within thirty (30) days of the close of each calendar
                  quarter for the life of the patents. Grantor, with 10 business
                  days advance written notice, may, with a qualified
                  representative, inspect the relevant books of Ingen to audit
                  compliance with this subsection. Any such inspections shall be
                  at grantor's expense and are limited to one inspection per
                  calendar year (and must be at least 90 days apart).

                       D. COMPLIANCE WITH SECURITIES LAWS

         The parties understand that this Agreement is in the nature of a
"security" as defined under applicable state and federal law. This is because a
portion of the purchase price for the patents is payable in restricted
securities of Ingen.

         It is understood that this Agreement will not be registered with any
state or federal securities regulatory authority and that the parties are
relying upon exemptions from registration under state and federal law, or, the
parties are relying on a federal law "private placement" exemption that
pre-empts state law. No state or federal securities regulator has read or passed
upon the merits or adequacy of this Agreement. The certificate evidencing
ownership of common stock in Ingen will contain a restrictive endorsement
prohibiting transfer (without permission obtainable under very limited
circumstances).

                            E. ASSIGNMENT OF PATENTS

         Immediately after this Agreement is signed, the parties shall execute
an Assignment of Patent as prepared by Ingen within a form substantially similar
to the form as contained within Exhibit "D" hereto. Exhibit "D" is incorporated
herein as a part hereof by this reference. Ingen shall prepare, and the parties
shall also immediately execute, a United States Patent and Trademark Office Form
PTO-1595. Ingen shall, as soon as is practical thereafter, record the Form
PTO-1595 and Assignment of Patent (at Ingen's expense) with the United States
Patent and Trademark Office. The parties agree to expeditiously prepare and sign
any other document needed to effectuate this transaction to its fullest degree.

                                       2
<PAGE>

             F. CANCELLATION OF LICENSING AGREEMENT; MUTUAL RELEASE

         Immediately upon the signing of this Agreement, the Exclusive Licensing
Agreement, as contained in Exhibit "C" hereto, is cancelled and is of no further
force and effect except as provided for herein. Grantor represents and warrants
that he received 200,000 shares of Ingen common stock as contained in 1. of the
licensing agreement. Any employment contract between Ingen and Grantor as
referenced in 1. of the licensing agreement is also cancelled and is of no
further force and effect.

         1. GENERAL, MUTUAL RELEASE; NON-ADMISSION OF LIABILITY

         This Mutual General Release shall not in any way be construed as an
admission that either party has acted wrongfully with respect to the other party
or any other person, and both parties specifically disclaim any liability to or
wrongful acts against the other party or any other person, on the part of
himself, herself and their respective employees or agents, if any. In fact, the
parties are not aware of having done anything to harm the interests of the other
party.
         2. COMPLETE RELEASE BY BOTH PARTIES.

                  (a) Except as herein otherwise agreed, each party hereby
irrevocably and unconditionally releases, acquits and forever discharges the
other and each of their present and former agents, directors, officers,
employees, representatives, attorneys, spouses, other family members and anyone
associated with the other having anything to do with the relationship of the
parties, and all persons acting by, through, under or in concert with any of
them from any and all charges, complaints, claims, liabilities, obligations,
promises, agreements, controversies, damages, actions, causes of action, suits,
rights, demands, costs, losses, debts and expenses (including attorneys' fees
and costs actually incurred) of any nature whatsoever, known or unknown,
suspected or unsuspected, including, but not limited to, rights arising out of
alleged violations of any contracts, express or implied, any covenant of good
faith and fair dealing, express or implied, or any tort, or any federal, state
or other governmental statute, regulation, or ordinance. This paragraph shall
have no applicability to Claims, if any, based totally on events occurring after
the date of this Agreement and/or on the provisions of this Agreement.

                  (b) Except as herein otherwise agreed, each party hereby
irrevocably and unconditionally releases, acquits and forever discharges the
other from any and all charges, complaints, claims, liabilities, obligations,
promises, agreements, controversies, damages, actions, causes of action, suits,
rights, demands, costs, losses, debts and expenses (including attorneys' fees
and costs actually incurred) of any nature whatsoever, known or unknown,
suspected or unsuspected as of the date of the execution of this Agreement, by
reason of any act or omission concerning any matter, cause, or thing.

                                       3
<PAGE>

         3.  KNOWING AND VOLUNTARY WAIVER BY THE PARTIES

         The parties expressly waive and relinquish all rights and benefits
afforded by Section 1542 of the Civil Code of the State of California, and do so
understanding and acknowledging the significance of such specific waiver of
Section 1542. Section 1542 of the Civil Code of the State of California states
as follows:
                  "A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of executing
the release, which if known by him must have materially affected his settlement
with the debtor."
         Thus, notwithstanding the provisions of Section 1542, and for the
purpose of implementing a full and complete release, the parties expressly
acknowledge that this Mutual General Release is intended to include in its
effect, without limitation, all claims which the parties do not know or suspect
to exist at the time of execution hereof, and that this Mutual General Release
contemplates the extinguishment of any such claim or claims and any right to sue
regarding any such claim or claims (except for uncured breaches of this
Agreement occurring after the date first written above).

                   G. REPRESENTATIONS AND WARRANTIES OF INGEN

         Ingen represents and warrants that it is properly formed and in good
standing in the state of Georgia and that it has and will continue to operate
its business in a commercially reasonable manner, in accordance with industry
standards.

         Ingen represents and warrants that it will continue to use its best
efforts to manufacture and sell its products using the technologies embodied in
the patents for the length of time of this Agreement, or for as long as
commercially viable (in the reasonable judgment of Ingen); whichever comes
first. If and when sales are made, Ingen will dutifully collect and timely pay
grantor's royalty as contained herein regardless of whether the royalty is due
from sales of its products or as a result of a licensing agreement with another
party.

         Ingen represents and warrants that it will take no conscious actions
(or omissions) that will intentionally devalue the patents. Ingen agrees,
subject to reasonable economic constraints and within Ingen's product sales
territories or the United States (whichever area is greater), to defend the
patents against infringement and other forms of illegal exploitation by others.

         Ingen represents and warrants that it knows of no reason (economic,
legal or otherwise) why it should not enter into this Agreement. Ingen does not
represent or warrant that the terms of this Agreement are any more or less
favorable to grantor than any other terms might have been and further, that
Ingen accepts no responsibility for any potential legal, economic and/or tax
ramifications of this Agreement to the grantor.

                                       4
<PAGE>

              H. FURTHER REPRESENTATIONS AND WARRANTIES OF GRANTOR

         1. The grantor has received and carefully reviewed, and is familiar
with this Agreement and all material incorporated by reference herein, as well
as all amendments and attachments delivered herewith. In evaluating the
suitability of entering into this Agreement, the grantor has relied upon his own
judgments, opinions and observations of Ingen based on his experience with Ingen
over the last few years.

         2. The grantor has such knowledge and experience in financial and
business matters that he is capable of evaluating the merits and risks of the
prospective entrance into this Agreement. Grantor represents and warrants that
he is not aware of any reason (legal, financial or otherwise) why he should not
enter into this Agreement.

         3. The grantor has obtained, to the extent he deems necessary, his own
personal professional advice with respect to the risks inherent in this
Agreement, and the suitability of entering into this Agreement in light of his
personal needs and requirements.

         4. Especially with respect to the Ingen stock involved as a part of the
purchase price, the grantor believes that entering into this Agreement is
suitable for him based upon his investment objectives and financial needs, and
the grantor has adequate means of providing for his current financial needs and
personal contingencies and has no need for liquidity of investment with respect
to the stock being transferred to him per this Agreement.

         5. The grantor has been given access to full and complete information
regarding the company and its founding principals, and has utilized such access
to his satisfaction, or waived the opportunity to do so, for the purpose of
asking questions and receiving answers concerning the terms and conditions of
this Agreement, obtaining information in addition to, or verifying information
included in, this Agreement, and obtaining any of the documents described
herein. The grantor has either attended or been give reasonable opportunity to
attend a meeting with representatives of the company for the purpose of asking
questions of, and receiving answers from, such representatives concerning the
terms and conditions of this Agreement and to obtain any additional information,
to the extent reasonably available, necessary to verify the accuracy of
information provided in this Agreement and to ascertain the current state of
company operations and prospects.

         6. The grantor recognizes that Ingen has a limited operating history,
and that entry into this Agreement involves risk including, but not limited to,
the risk of economic losses from operations of the company (and resulting
inability of Ingen to manufacture and sell its products or pay the obligations
contained herein).

         7. With respect to the Ingen shares transferred hereby, the grantor
realizes that (i) entry into this Agreement should be considered by him to be a
long-term investment, (ii) He must bear the economic risk of investment for an
indefinite period of time because this Agreement has not been registered under
applicable securities laws, but rather is pursuant to exemptions therefrom and,
therefore, his interest in the Ingen shares per this Agreement may not be sold

                                       5
<PAGE>

unless subsequently registered under such securities laws or exempted from such
registration, (iii) there is presently no public market for the Ingen shares
(and none is expected), the grantor understands that he may not be able to
liquidate his Ingen stock in the event of an emergency or pledge any of his
interest in the Ingen stock as collateral or security for loans.

         8. The grantor acknowledges that Ingen and its affiliates have not
retained counsel to provide him with representation in connection with this
Agreement. The grantor also acknowledges that he understands that (i) no counsel
has undertaken any independent due diligence investigation of the facts and
circumstances relating to this Agreement, and (ii) he must assume responsibility
for his own due diligence investigation, and (iii) the protection afforded by a
complete due diligence investigation of counsel is not present in this
Agreement.

         9. The grantor acknowledges that he understands the risk that
insufficient operating funds and/or proceeds from product sales will be
available to Ingen over time and there is no guarantee that Ingen will be able
to maintain or increase its current level of operation and sales output; or
remain in business during the life of this Agreement.

         10. The grantor has been advised that this Agreement has not being
registered under the Securities Act of 1933 or the relevant state securities
law, and that the Ingen stock portion of this Agreement is being offered and
sold pursuant to exemptions from such registrations, and that the company's
reliance upon such exemptions is predicated partly on the grantor's
representations to the company as contained herein. The grantor represents and
warrants that this Agreement is being entered into for his own account and for
investment (with regard to the Ingen stock) and without the intention of
reselling or redistributing the Ingen shares, that he has made no agreement with
others regarding this Agreement, and that his financial condition is such that
it is not likely that it will be necessary to dispose his interest in the Ingen
stock herein in the foreseeable future. The grantor further represents that he
understands that he may not dispose of or transfer any of his interest in the
Ingen shares, or otherwise, in this Agreement in any manner without first
obtaining (i) an opinion of counsel satisfactory to the company that such
proposed disposition or transfer lawfully may be made without the registration
of this Agreement for such purpose pursuant to the Act, as then amended, and
applicable state securities laws, as well as any internal documents or policies
of the company, or (ii) such registrations (it being expressly understood that
the company shall not have any obligations to register this Agreement for any
purpose.)

         11. The grantor represents and warrants that he is a bona fide resident
of, and is domiciled in, the State of California and that his entry into this
Agreement by him is in his name solely for his own beneficial interest and not
as nominee for, or on behalf of, or for the beneficial interest of, or with the
intention to transfer to, any other person, trust, or organization, except
specifically set forth elsewhere in this Agreement.

                                       6
<PAGE>

         12. The grantor is informed of the significance to Ingen of the
foregoing representations, and such representations are made with the intention
that Ingen will rely on the same. The grantor shall indemnify and hold harmless
Ingen, its officers, directors, managers and agents against any losses, claims,
damages, or liabilities to which they, or any of them, may become subject
insofar as such losses, claim, damages, or liabilities (or actions in respect
thereof) arise from any misrepresentation or misstatement of facts or omission
to represent or state facts made by the grantor to Ingen herein.

         13. The grantor represents that he has obtained any necessary financial
and/or tax planning assistance in evaluating his entrance into this Agreement.

         14. Confidentiality. Grantor represents and warrants that he will hold
this Agreement in confidence and in accordance with the following:

              a. The provisions of this Agreement are confidential and private
and are not to be disclosed to outside parties (except on a reasonable need to
know basis only) without the written and express, advance consent of all parties
hereto.

              b. Grantor agrees and acknowledges that in his association with
Ingen under this Agreement (and prior to), he may come into, or has such,
possession or knowledge of confidential and/or proprietary information. Such
confidential and/or proprietary information includes, but is not limited to:
information regarding agents, contractors, employees and all affiliates of which
Ingen possesses an ownership interest of ten percent (10%) or greater; corporate
and/or financial information and records of or any client, customer or associate
of Ingen; customer information; client information; shareholder information;
business contacts; investor leads and contacts; employee information; documents
regarding Ingen's website and any product, business plan or presentation
materials of Ingen.

         Grantor represents and warrants to Ingen that he will not divulge
confidential, proprietary information of Ingen or any of its subsidiaries to
anyone or anything without the written and express, advance consent of Ingen,
and further represents and warrants that he will not use any proprietary
information of Ingen for his or anyone else's gain or advantage at any time
during or after the term of this Agreement.

                                I. FORCE MAJEURE

         Ingen is not responsible for any delay or financial loss regarding this
Agreement caused by any unforeseen event(s), act(s) or omission(s) of others not
within its control, including, but not limited to, labor stoppages or strikes,
lack of access to locations, equipment or facilities, interruption or cessation
of any public services or utilities, inclement weather, natural disasters, riots
or civil disturbances, terrorism or harassment, acts of war or aggression,
sickness, injury, death, incapacity, contractual disputes and adverse economic
conditions.

                                       7
<PAGE>

                          J. LITIGATION, LEGAL MATTERS

         Management has no information leading it to believe that litigation is
imminent or planned by anyone with respect to Ingen, its securities or this
Agreement.

                            K. ACCESS TO INFORMATION

         Grantor has the right to request additional information relative to
this private placement of securities and Agreement and Ingen, to the extent it
can reasonably and affordably supply it, has the duty to supply the same in a
timely manner.

                              L. TABLE OF EXHIBITS

         EXHIBIT "A"             United State Patent (December 4, 2001)

         EXHIBIT "B"             United States Patent (October 24, 2000)

         EXHIBIT "C"             Exclusive Licensing Agreement (June 24, 1999)

         EXHIBIT "D"             Assignment of Patent form

                      M. MISCELLANEOUS LEGAL CONSIDERATIONS

         1. Modifications and Amendments. The terms and conditions of this
Agreement may be amended at any time and from time to time, in whole and in
part, upon written agreement signed by a duly authorized officer of Ingen and
grantor.

         2. Expenses. Each party shall bear its own respective costs, fees and
expenses associated with entering into and executing its duties under this
Agreement.

         3. Indemnification. Each party, if an offending party, agrees to
indemnify and hold harmless the other party from any claim of damage of any
party or non-party arising out of any act or omission of the offending party
arising from this Agreement.

         4. Notices. Any notice, request, proposal, statement or other
communication required or permitted to be given hereunder shall be in writing
and shall be deemed given when personally delivered or confirmed by facsimile or
ten (10) days after mailed by certified mail, postage prepaid, to the parties at
their respective addresses first set forth above or to such other address of
which a party shall have theretofore notified the other by a notice given in
accordance with this Paragraph 4., together with a courtesy copy to the
receiving party's counsel, as follows:

If to Ingen:
------------
Ingen Technologies, Inc.
285 E. County Line Road
Calimesa, CA 92320

                                       8
<PAGE>

If to Grantor:
--------------
Mr. Fritz McDermott
11619 Lennon Street
Yucaipa, CA 92399

         5. Breach. In the event of a breach of this Agreement, the breaching
party shall be notified by the other party by written notice within ten (10)
days of reasonable discovery of the breach. Upon notice so given, the breach
shall be corrected within fifteen (15) days. If the breach is not corrected
within this period, the non-breaching party may take appropriate legal action
consistent with the terms of this Agreement.

         6. Assignment. The provisions of this Agreement shall be binding upon
and inure to the benefit of Ingen and grantor and their respective successors,
assigns and personal representatives. If Ingen shall at any time be merged or
consolidated into or with any other corporation or the company's capital
ownership units or substantially all of its assets are transferred to another
entity, the provisions of this Agreement shall be binding upon and inure to the
benefit of grantor and the entity resulting from such merger or consolidation or
to which such capital ownership units or assets shall be transferred, and this
provision shall apply in the event of any subsequent merger, consolidation or
transfer.

         7. Entire Agreement. This Agreement is the full and complete,
integrated agreement of the parties, merging and superceding all previous
written and/or oral agreements and representations between the parties, and is
amendable as provided for above. This Agreement shall be interpreted as if the
parties participated equally in its drafting.

         8. Governing Law. This Agreement shall be governed by the laws of the
State of California applicable to contracts made to be performed entirely
therein, and each party agrees to submit to the personal jurisdiction of any
Court of competent jurisdiction in San Bernardino County and to all the rules
and orders of such Court, and the laws of the State of California.

         9. Waiver. Any waiver by either party of any provision of this
Agreement or any right hereunder shall not be deemed a continuing waiver and
shall not prevent or stop such party from thereafter enforcing such provision,
and the failure of either party to insist in any one or more instances upon the
strict performance of any of the provisions of this Agreement by the other party
shall not be construed as a waiver or relinquishment for the future performance
of any such term or provision, but the same shall continue in full force and
effect.

         10. Enforcement. If the parties cannot settle any dispute arising out
of or relating to this Agreement, or the breach thereof, in a reasonable and
timely fashion, and a mediation session has failed, either party may file for
binding arbitration within San Bernardino County, California. Arbitration shall
be governed by the rules of the American Arbitration Association and judgment

                                       9
<PAGE>

upon the award may be entered in any Court within San Bernardino County having
jurisdiction thereof. However, the parties agree to reserve the right to obtain
a preliminary injunction from a court of competent jurisdiction if necessary in
the event of a material breach arising from this Agreement.

         11. Headings. The headings in this Agreement are solely for convenience
of reference and shall not affect its interpretation.

         12. Possible Invalidity. In case any provision of this Agreement should
be held to be contrary to, or invalid under, the law of any country, state or
other jurisdiction, such illegality or invalidity shall not affect in any way
any of the other provisions hereof, this Agreement in such event to be construed
as though the offending provision had been deleted or modified in such a manner
as to make it enforceable to the maximum extent possible to reflect the parties'
intent hereunder, and all of the provisions hereof nevertheless shall continue
unmodified and in full force and effect in any country, state or jurisdiction in
which such provisions are legal and valid.

         13. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original and all of which together shall constitute
one and the same agreement. Facsimile signatures shall be considered as valid
and binding as original signatures.

         14. Independent Covenants: Each of the respective rights and
obligations of the parties hereunder shall be deemed independent and may be
enforced independently irrespective of any of the other rights and obligations
set forth herein.

IN WITNESS WHEREOF, the parties hereto have executed (before a Notary Public)
this Agreement, consisting of ten (10) pages, on the date first written above.

--------------------------------------    --------------------------------------
Ingen Technologies, Inc.                  GRANTOR
By:  Scott R. Sand, CEO

                                       10<PAGE>

                                                                    EXHIBIT 10.1

                              MASTER REVOLVING NOTE
                 Variable Rate-Maturity Date-Obligatory Advances
                      (Business and Commercial Loan Only)

--------------------------------------------------------------------------------
AMOUNT            NOTE DATE            MATURITY DATE       TAX IDENTIFICATION #

$2,000,000.00    September 24, 2004    October 05, 2005       54-4867640
--------------------------------------------------------------------------------

On the Maturity Date, as stated above, for value received, the undersigned
promise(s) to pay to the order of COMERICA BANK ("Bank"), at
any office of the Bank in the State of California, TWO MILLION AND NO/100
Dollars (U.S.) (or that portion of it advanced by the Bank and not repaid as
later provided) with interest until maturity, whether by acceleration or
otherwise, or an Event of Default, as later defined, at a per annum rate equal
to the Bank's base rate from time to time in effect PLUS 1.000% per annum and
after that at a rate equal to the rate of interest otherwise prevailing under
this Note plus 3% per annum (but in no event in excess of the maximum rate
permitted by law). The Bank's "base rate" is that annual rate of interest so
designated by the Bank and which is changed by the Bank from time to time.
Interest rate changes will be effective for interest computation purposes as and
when the Bank's base rate changes. Interest shall be calculated on the basis of
a 360-day year for the actual number of days the principal is outstanding.
Accrued interest on this Note shall be payable on the 5th day of each MONTH
commencing NOVEMBER 05, 2004, until the Maturity Date when all amounts
outstanding under this Note shall be due and payable in full. If the frequency
of interest payments is not otherwise specified, accrued interest on this Note
shall be payable monthly on the first day of each month. If any payment of
principal of interest under this Note shall be payable on a day other than a day
on which the Bank is open for business, this payment shall be extended to the
next succeeding business day and interest shall be payable at the rate specified
in this Note during this extension. A late payment charge equal to 5% of each
late payment may be charged on any payment not received by the Bank within 10
calendar days after the payment due date, but acceptance of payment of this
charge shall not waive any Default under this Note.

The principal amount payable under this Note shall be the sum of all advances
made by the Bank to or at the request of the undersigned, less principal
payments actually received in cash by the Bank. The books and records of the
Bank shall be the best evidence of the principal amount and the unpaid interest
amount owing at any time under this Note and shall be conclusive absent manifest
error. No interest shall accrue under this Note until the date of the first
advance made by the Bank; after that interest on all advances shall accrue and
be computed on the principal balance outstanding from time to time under this
Note until the same is paid in full.

This Note and any other indebtedness and liabilities of any kind of the
undersigned (or any of them) to the Bank, and any and all modifications,
renewals or extensions of it, whether joint or several, contingent or absolute,
now existing or later arising, and however evidenced (collectively
"Indebtedness") are secured by and the Bank is granted a security interest in
all items deposited in any account of any of the undersigned with the Bank and
by all proceeds of these items (cash or otherwise), all account balances of any
of the undersigned from time to time with the Bank, by all property and any of
the undersigned from time to time in the possession of the Bank and by any other
collateral, rights and properties described in each and every deed of trust,
mortgage, security agreement, pledge, assignment and other security or
collateral agreement which has been, or will at any time(s) later be, executed
by any (or all) of the undersigned to or for the benefit of the Bank
(collectively "Collateral"). Notwithstanding the above, (i) to the extent that
any portion of the indebtedness is a consumer loan, that portion shall not be
secured by any deed of trust or mortgage on or other security interest in any of
the undersigned's principal dwelling or any of the undersigned's real property
which is not a purchase money security interest as to that portion, unless
expressly provided to the contrary in another place, or (ii) the undersigned (or
any of them) has(have) given or give(s) Bank a deed of trust or mortgage
covering real property, that deed of trust or mortgage shall not secure this
Note or any other indebtedness of the undersigned (or any of them), unless
expressly provided to the contrary in another place.

                                       1

<PAGE>

If the undersigned (or any of them) or any guarantor under a guaranty of all or
part of the Indebtedness ("guarantor") (i) fail(s) to pay any of the
Indebtedness when due, by maturity, acceleration or otherwise, or fail(s) to pay
any Indebtedness owing on a demand basis upon demand; or (ii) fail(s) to comply
with any of the terms or provisions of any agreement between the undersigned (or
any of them) or any such guarantor and the Bank; or (iii) become(s) insolvent or
the subject of a voluntary or involuntary proceeding in bankruptcy, or a
reorganization, arrangement or creditor composition proceeding, (if a business
entity) cease(s) doing business as a going concern, (if a natural person) die(s)
or become(s) incompetent, (if a partnership) dissolve(s) or any general partner
of it dies, becomes incompetent or becomes the subject of a bankruptcy
proceeding or (if a corporation of a limited liability company) is the subject
of a dissolution, merger or consolidation; or (a) if any warranty or
representation made by any of the undersigned or any guarantor in connection
with this Note or any of the Indebtedness shall be discovered to be untrue or
incomplete; or (b) if there is any termination, notice of termination, or breach
of any guaranty, pledge collateral assignment or subordination agreement
relating to all or any part of the Indebtedness; or (c) if there is any failure
by any of the undersigned or any guarantor to pay when due any of its
indebtedness (other than to the Bank) or in the observance of performance of any
term, covenant or condition in any document evidencing, securing or relating to
such indebtedness; or (d) if the Bank deems itself insecure believing that the
prospect of payment of this Note or any of the Indebtedness is impaired or shall
fear deterioration, removal or waste of any of the Collateral; or (e) if there
is filed or issued a levy or writ of attachment or garnishment or other like
judicial process upon the undersigned (or any of them) or any guarantor or any
of the Collateral, including, without limit, any accounts of the undersigned (or
any of them) or any guarantor with the Bank, then the Bank, upon the occurrence
of any of these events (each a "Default"), may at its option and without prior
notice to the undersigned (or any of them), declare any or all of the
indebtedness to be immediately due and payable (notwithstanding any provisions
contained in the evidence of it to the contrary), cease advancing money or
extending credit to or for the benefit of the undersigned under this Note or any
other agreement between the undersigned and Bank, terminate this Note as to any
future liability or obligation of Bank, but without affecting Bank's rights and
security interest in any Collateral and the Indebtedness of the undersigned to
Bank, sell or liquidate all or any portion of the Collateral, set off against
the indebtedness any amounts owing by the Bank to the undersigned (or any of
them), charge interest at the default rate provided in the document evidencing
the relevant Indebtedness and exercises any one or more of the rights and
remedies granted to the Bank by any agreement with the undersigned (or any of
them) or given to it under applicable law. In addition, if this Note is secured
by a deed of trust or mortgage covering real property, then the trustor or
mortgagor shall not mortgage or pledge the mortgaged premises as security for
any other indebtedness or obligations. This Note, together with all other
indebtedness secured by said deed of trust or mortgage, shall become due and
payable immediately, without notice, at the option of the Bank, (a) if said
trustor or mortgagor shall mortgage or pledge the mortgaged premises for any
other indebtedness or obligations or shall convey, assign or transfer the
mortgaged premises by deed, installment sale contract instrument, or (b) if the
title to the mortgaged premises shall become vested in any other person or party
in any manner, whatsoever, or (c) if there is any disposition (through one or
more transactions) of legal or beneficial title to a controlling interest and
said trustor or mortgagor. All payments under this Note shall be in immediately
available United States funds, without set off or counterclaim.

If the Note is signed by two or more parties (whether by all as makers or by one
or more as an accommodation party or otherwise), the obligations and
undertakings under this Note shall be that of all and any two or more jointly
and also of each severally. This Note shall bind the undersigned, and the
undersigned's respective heirs, personal representatives, successors and
assigns.

The undersigned waive(s) presentment, demand protest, notice of dishonor, notice
of demand or intent to demand, notice of acceleration or intent to accelerate,
and all other notices and agree(s) that no extension or indulgence to the
undersigned (or any of them) or release, substitute or nonenforcement of any
security, or release or substitution of any of the undersigned, any guarantor or
any other party, whether with or without notice, shall affect the obligations of
any of the undersigned. The undersigned waive(s) all defenses or right to
discharge available under Section 3-605 of the California Uniform Commercial
Code and waive(s) all other suretyship defenses or right to discharge. The
undersigned agree(s) that the Bank has the right to sell, assign, or grant
participation, or any interest, in any or all of the indebtedness, and that, in
connection with this right, but without limiting its ability to make other
disclosures to the full extent allowable, the Bank may disclose all documents
and information which the Bank now or later has relating to the undersigned or
the indebtedness, The undersigned agree(s) that the Bank may provide information
relating to the note or to the undersigned to the Bank's parent, affiliates,
subsidiaries and service providers.

                                       2

<PAGE>

The undersigned agree(s) to reimburse the holder or owner of this Note for any
and all costs and expenses (including without limit, court costs, legal expenses
and reasonable attorney fees, whether inside or outside counsel is used, whether
or not suit is instituted and, if suit is instituted, whether at the trial court
level, appellate level, in a bankruptcy, probate or administrative proceeding or
otherwise) incurred in collecting or attempting to collect this Note or incurred
in any other matter or proceeding relating to this Note.

The undersigned acknowledge(s) and agree(s) that there are no contrary
agreements, oral or written, establishing a term of this Note and agree(s) that
the terms and conditions of this Note may not be amended, waived or modified
except in writing signed by an officer of the Bank expressly stating that the
writing constitutes an amendment, waiver or modification of the terms of this
Note. As used in this Note, the word "undersigned" means, individually and
collectively, each maker, accommodation party, indorser and other party signing
this Note in any similar capacity. If any provision of this Note is
unenforceable in whole or part for any reason, the remaining provisions shall
continue to be effective. THIS NOTE IS MADE IN THE STATE OF CALIFORNIA AND SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF CALIFORNIA, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

The maximum interest rate shall not exceed the highest applicable usury ceiling.

THE UNDERSIGNED AND THE BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED, EACH PARTY, AFTER CONSULTING (OR
HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY
AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY
IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN
ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS.

                                       3

<PAGE>

Until full and final payment of this Indebtedness and so long as Bank has any
obligation to advance funds under the Note, Borrower hereby warrants and agrees
to maintain a zero ($0.00) outstanding balance for a minimum period of thirty
(30) consecutive days each quarter following the date of this Note. See Addendum
"A" attached hereto and made a part of this Note.

                                                INITIAL HERE_________

Kinergy Marketing LLC

By:  /s/ Neil M. Koehler                       ITS:  MEMBER
--------------------------------------------------------------------------------
   SIGNATURE OF Neil M. Koehler                      Title

5711 NORTH WEST AVENUE        FRESNO      CA             USA            9371
--------------------------------------------------------------------------------
STREET ADDRESS                CITY       STATE          (COUNTRY)     ZIP CODE

<TABLE>
<S>     <C>
------------------------------------------------------------ ---------------------------------------------------------
                     For Bank Use Only                       CCAR #
------------------------- -------------------------- -----------------------------------------------------------------
Loan Officer Initials     Loan Group Name            Obligor(s) Name
ss                        Fresno Middle Market       Kinergy Marketing LLC
------------------------- -------------------------- ---------------------- ----------------- ------------------------
Loan Officer I.D. No.     Loan Group No.             Obligor #              Note #            Amount
49079                     97329                                                                    $2,000,000.00
------------------------- -------------------------- ---------------------- ----------------- ------------------------
</TABLE>

                                       4

<PAGE>

                      ADDENDUM "A" TO MASTER REVOLVING NOTE

         This Addendum "A" to Master Revolving Note (this "Addendum") is
attached to, and by this reference shall be a part of and is hereby incorporated
by this reference into that certain Master Revolving Note dated September 24,
2004 (the "Note") executed by KINERGY MARKETING LLC ("Borrower") in favor of
COMERICA BANK ("Bank") in the original principal amount of Two Million and
no/100 Dollars ($2,000,000.00) ("Note Amount"). Except as otherwise noted, the
terms not defined herein shall have the meaning set forth in the Note.

         Notwithstanding anything to the contrary contained in the Note,
Borrower and Bank agree that the provisions set forth therein shall be amended
as follows:

A.       LETTERS OF CREDIT
         -----------------

1.       Subject to availability under the Note and subject to the terms and
         conditions of the Note, Bank may, at its sole discretion from time to
         time during the term of the Note, issue or cause to be issued letters
         of credit for the account of Borrower in the aggregate outstanding face
         amount not to exceed Two Million and no/100 Dollars ($2;000,000.00);
         PROVIDED, HOWEVER, that the sum of the outstanding principal balance of
         all advances made under the Note PLUS the Letter of Credit Obligations
         shall not at any time exceed the Note Amount. All letters of credit
         shall be in a form and substance acceptable to Bank in its sole
         discretion and shall be subject to the terms and conditions of Bank's
         standard form of letter of credit application and agreement. Each
         letter of credit shall have an expiration date no later than the
         maturity date of the Note.

2.       In addition to any and all other rights and remedies available to Bank
         under or pursuant to the Note or any other documents, instruments or
         agreements contemplated hereby, Borrower acknowledges and agrees that
         (i) at any time following the occurrence and during the continuance of
         any Event of Default, and/or (ii) termination of Bank's commitment or
         obligation to make loans or advances or otherwise extend credit to or
         in favor of Borrower hereunder, in the event that and to the extent
         that there are any Letter of Credit Obligations outstanding at such
         time, upon demand of Bank, Borrower shall deliver to Bank, or cause to
         be delivered to Bank, cash collateral in an amount not less than such
         Letter of Credit Obligations, which cash collateral shall be held and
         retained by Bank as cash collateral for the repayment of such Letter of
         Credit Obligations, together with any and all other indebtedness of
         Borrower to Bank remaining unpaid, and Borrower pledges to Bank and
         grants to Bank a continuing first priority security interest in such
         cash collateral so delivered to Bank. Alternatively, Borrower shall
         cause to be delivered to Bank an irrevocable standby letter of credit
         issued in favor of Bank by a bank acceptable to Bank, in its sole
         discretion, in an amount not less than such Letter of Credit
         Obligations, and upon terms acceptable to Bank, in its sole discretion.

3.       The obligation of Borrower to immediately reimburse Bank for drawings
         made under letters of credit shall be absolute, unconditional and
         irrevocable in accordance with the terms of this Note and such letters
         of credit Borrower shall indemnify, defend, protect and hold Bank
         harmless from any loss, cost, expense, or liability, including, without
         limitation, reasonable attorneys' fees, arising out of or in connection
         with any letters of credit.

4.       If at any time for any reason, the amount of indebtedness owed by
         Borrower to Bank is greater than the aggregate amount available under
         the terms and conditions of this Note, Borrower shall immediately pay
         to Bank, in cash, the amount of such excess.

5.       "Letter of Credit Obligations" shall mean the aggregate sum of the
         undrawn amount of any letter(s) of credit issued by Bank upon the
         application of and/or for the account of Borrower, plus any unpaid
         reimbursement obligations owing by Borrower to Bank in respect of any
         such letter(s) of credit.

Kinergy Marketing LLC                       Comerica Bank

By: ________________________                By: ______________________________
      Neil M. Koehler                           Brian C. Santos
Title: MEMBER                                   Senior Vice President - Western
                                                Division

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]