Document:

EXHIBIT 10.3

THIS  WARRANT  AND  THE  SHARES  OF  COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT  HAVE  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR  ANY  STATE SECURITIES LAWS.  THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON
EXERCISE  OF  THIS  WARRANT  MAY  NOT  BE  SOLD,  OFFERED  FOR  SALE, PLEDGED OR
HYPOTHECATED  IN  THE  ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS
WARRANT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO  NEW  CENTURY  ENERGY  CORP.  THAT  SUCH
REGISTRATION  IS  NOT  REQUIRED.

           Right to Purchase up to 7,258,065 Shares of Common Stock of
                            New Century Energy Corp.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. L-1                                               Issue Date:  June 30, 2005

     NEW  CENTURY  ENERGY  CORP.,  a corporation organized under the laws of the
State  of  Colorado  (the "Company"), hereby certifies that, for value received,
LAURUS MASTER FUND, LTD., or assigns (the "Holder"), is entitled, subject to the
terms set forth below, to purchase from the Company (as defined herein) from and
after the Issue Date of this Warrant and at any time or from time to time before
5:00  p.m.,  New  York  time,  through  the close of business June 30, 2012 (the
"Expiration  Date"),  up  to  7,258,065  fully  paid and nonassessable shares of
Common  Stock  (as  hereinafter  defined),  $0.001  par  value per share, at the
applicable  Exercise  Price  per  share  (as  defined  below).  The  number  and
character  of  such shares of Common Stock and the applicable Exercise Price per
share  are  subject  to  adjustment  as  provided  herein.

     As  used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

          (a)  "Company" means New Century Energy Corp. and any person or entity
     which shall succeed, or assume the obligations of, New Century Energy Corp.
     hereunder.

          (b)  "Common  Stock"  means  (i) the Company's Common Stock, par value
     $0.001 per share; and (ii) any other securities into which or for which any
     of the securities described in the preceding clause (i) may be converted or
     exchanged  pursuant  to a plan of recapitalization, reorganization, merger,
     sale of assets or otherwise.

          (c) "Exercise Price" means a price of $0.80 per share of Common Stock.

          (d)  "Other  Securities" means any stock (other than Common Stock) and
     other  securities  of  the  Company  or  any  other  person  (corporate  or
     otherwise) which the holder of the Warrant at any time shall be entitled to
     receive, or shall have received, on the exercise of the Warrant, in lieu of
     or  in  addition to Common Stock, or which at any time shall be issuable or
     shall have been issued in exchange for or in replacement of Common Stock or
     Other Securities pursuant to Section  4  or  otherwise.

     1. Exercise of Warrant.
        -------------------

          1.1  Number  of Shares Issuable upon Exercise. From and after the date
               ----------------------------------------
     hereof  through  and  including  the  Expiration  Date, the Holder shall be
     entitled  to receive, upon exercise of this Warrant in whole or in part, by
     delivery  of  an  original  or  fax  copy of an exercise notice in the form
     attached  hereto  as  Exhibit  A  (the "Exercise Notice"), shares of Common
     Stock of the Company, subject to adjustment pursuant to Section 4.

          1.2 Fair Market Value. For purposes hereof, the "Fair Market Value" of
              -----------------
     a  share of Common Stock as of a particular date (the "Determination Date")
     shall mean:

               (a) If the Company's Common Stock is traded on the American Stock
          Exchange  or another national exchange or is quoted on the National or
          SmallCap  Market of The Nasdaq Stock Market, Inc. ("Nasdaq"), then the
          closing  or  last  sale  price,  respectively,  reported  for the last
          business day immediately preceding the Determination Date.

               (b)  If  the Company's Common Stock is not traded on the American
          Stock  Exchange  or  another national exchange or on the Nasdaq but is
          traded  on  the NASD Over the Counter Bulletin Board, then the mean of
          the  average of the closing bid and asked prices reported for the last
          business day immediately preceding the Determination Date.

               (c)  Except  as  provided  in  clause (d) below, if the Company's
          Common  Stock  is  not  publicly  traded,  then  as the Holder and the
          Company  agree  or  in  the  absence  of  agreement  by arbitration in
          accordance  with  the rules then in effect of the American Arbitration
          Association,  before  a single arbitrator to be chosen from a panel of
          persons  qualified  by education and training to pass on the matter to
          be decided.

               (d)  If  the  Determination  Date  is  the date of a liquidation,
          dissolution  or  winding  up, or any event deemed to be a liquidation,
          dissolution  or winding up pursuant to the Company's charter, then all
          amounts  to  be  payable  per  share  to  holders  of the Common Stock
          pursuant  to the charter in the event of such liquidation, dissolution
          or  winding  up,  plus  all  other  amounts to be payable per share in
          respect of the Common Stock in liquidation under the charter, assuming
          for  the  purposes of this clause (d) that all of the shares of Common
          Stock  then  issuable  upon exercise of the Warrant are outstanding at
          the Determination Date.

          1.3  Company  Acknowledgment.  The  Company  will,  at the time of the
               -----------------------
     exercise of this Warrant, upon the request of the Holder hereof acknowledge
     in writing its continuing obligation to afford to such Holder any rights to
     which  such  Holder  shall  continue  to be entitled after such exercise in
     accordance with the provisions of this Warrant. If the Holder shall fail to
     make  any  such  request,  such  failure  shall  not  affect the continuing
     obligation of the Company to afford to such Holder any such rights.

<PAGE>

          1.4  Trustee  for  Warrant  Holders. In the event that a bank or trust
               ------------------------------
     company  shall  have  been  appointed  as  trustee  for the Holders of this
     Warrant  pursuant  to Subsection 3.2, such bank or trust company shall have
     all the powers and duties of a warrant agent (as hereinafter described) and
     shall  accept,  in  its  own  name  for  the account of the Company or such
     successor  person as may be entitled thereto, all amounts otherwise payable
     to  the  Company or such successor, as the case may be, on exercise of this
     Warrant pursuant to this Section 1.

     2. Procedure for Exercise.
        ----------------------

          2.1  Delivery  of  Stock  Certificates, Etc., on Exercise. The Company
               ----------------------------------------------------
     agrees  that  the  shares  of  Common Stock purchased upon exercise of this
     Warrant  shall  be deemed to be issued to the Holder as the record owner of
     such  shares  as of the close of business on the date on which this Warrant
     shall  have  been  surrendered  and  payment  shall have been made for such
     shares in accordance herewith. As soon as practicable after the exercise of
     this Warrant in full or in part, and in any event within three (3) business
     days thereafter, the Company at its expense (including the payment by it of
     any  applicable  issue  taxes)  will  cause to be issued in the name of and
     delivered  to the Holder, or as such Holder (upon payment by such Holder of
     any  applicable  transfer  taxes)  may direct in compliance with applicable
     securities  laws,  a certificate or certificates for the number of duly and
     validly  issued,  fully  paid  and nonassessable shares of Common Stock (or
     Other  Securities) to which such Holder shall be entitled on such exercise,
     plus,  in lieu of any fractional share to which such Holder would otherwise
     be entitled, cash equal to such fraction multiplied by the then Fair Market
     Value  of one full share, together with any other stock or other securities
     and  property  (including  cash,  where applicable) to which such Holder is
     entitled upon such exercise pursuant to Section 1 or otherwise.

          2.2  Exercise. Payment shall be made either in cash or by certified or
               --------
     official  bank  check  payable  to  the  order  of the Company equal to the
     applicable  aggregate  Exercise  Price  for  the  number  of  Common Shares
     specified  in  such  Exercise  Notice  (as  such  exercise  number shall be
     adjusted  to reflect any adjustment in the total number of shares of Common
     Stock  issuable to the Holder per the terms of this Warrant) and the Holder
     shall  thereupon  be  entitled  to  receive  the number of duly authorized,
     validly  issued,  fully-paid  and non-assessable shares of Common Stock (or
     Other Securities) determined as provided herein.

     3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.
        -------------------------------------------------------------

          3.1 Reorganization, Consolidation, Merger, Etc. In case at any time or
              ------------------------------------------
     from  time  to  time  the  Company  shall  (a) effect a reorganization, (b)
     consolidate  with  or  merge  into any other person, or (c) transfer all or
     substantially all of its properties or assets to any other person under any
     plan  or arrangement contemplating the dissolution of the Company, then, in
     each  such  case, as a condition to the consummation of such a transaction,
     proper  and  adequate  provision  shall  be made by the Company whereby the
     Holder,  on  the exercise hereof as provided in Section 1 at any time after
     the  consummation  of  such  reorganization, consolidation or merger or the
     effective  date  of such dissolution, as the case may be, shall receive, in
     lieu  of  the  Common Stock (or Other Securities) issuable on such exercise
     prior  to  such  consummation  or  such effective date, the stock and other
     securities  and  property  (including cash) to which such Holder would have
     been  entitled  upon  such  consummation  or  in  connection  with  such
     dissolution,  as  the  case  may  be,  if such Holder had so exercised this
     Warrant,  immediately  prior  thereto,  all  subject  to further adjustment
     thereafter as provided in Section 4.

<PAGE>

          3.2  Dissolution.  In  the  event  of  any  dissolution of the Company
               -----------
     following  the  transfer  of  all or substantially all of its properties or
     assets, the Company, concurrently with any distributions made to holders of
     its  Common Stock, shall at its expense deliver or cause to be delivered to
     the  Holder  the  stock  and other securities and property (including cash,
     where  applicable) receivable by the Holder pursuant to Section 3.1, or, if
     the  Holder  shall  so  instruct  the  Company,  to a bank or trust company
     specified  by the Holder and having its principal office in New York, NY as
     trustee for the Holder (the "Trustee").

          3.3  Continuation  of  Terms.  Upon any reorganization, consolidation,
               -----------------------
     merger or transfer (and any dissolution following any transfer) referred to
     in this Section 3, this Warrant shall continue in full force and effect and
     the  terms  hereof  shall  be  applicable  to the shares of stock and other
     securities  and  property  receivable on the exercise of this Warrant after
     the  consummation  of  such  reorganization, consolidation or merger or the
     effective  date of dissolution following any such transfer, as the case may
     be,  and  shall  be  binding  upon  the  issuer  of any such stock or other
     securities,  including,  in  the  case  of  any  such  transfer, the person
     acquiring  all  or  substantially  all  of  the properties or assets of the
     Company,  whether or not such person shall have expressly assumed the terms
     of  this  Warrant  as provided in Section 4. In the event this Warrant does
     not  continue  in  full  force  and  effect  after  the consummation of the
     transactions described in this Section 3, then the Company's securities and
     property  (including  cash, where applicable) receivable by the Holder will
     be delivered to the Holder or the Trustee as contemplated by Section 3.2.

     4.  Extraordinary  Events  Regarding  Common  Stock.  In the event that the
         -----------------------------------------------
Company  shall  (a) issue additional shares of the Common Stock as a dividend or
other  distribution on outstanding Common Stock or any preferred stock issued by
the  Company,  (b)  subdivide  its  outstanding  shares  of Common Stock, or (c)
combine  its  outstanding  shares  of  the Common Stock into a smaller number of
shares  of the Common Stock, then, in each such event, the Exercise Price shall,
simultaneously  with the happening of such event, be adjusted by multiplying the
then Exercise Price by a fraction, the numerator of which shall be the number of
shares  of  Common  Stock  outstanding  immediately  prior to such event and the
denominator  of  which shall be the number of shares of Common Stock outstanding
immediately  after  such  event, and the product so obtained shall thereafter be
the  Exercise Price then in effect. The Exercise Price, as so adjusted, shall be
readjusted  in  the  same  manner  upon the happening of any successive event or
events  described herein in this Section 4. The number of shares of Common Stock
that  the Holder shall thereafter, on the exercise hereof as provided in Section
1,  be  entitled  to  receive  shall  be  adjusted  to  a  number  determined by
multiplying  the  number of shares of Common Stock that would otherwise (but for
the  provisions of this Section 4) be issuable on such exercise by a fraction of
which  (a) the numerator is the Exercise Price that would otherwise (but for the
provisions  of  this  Section  4)  be  in effect, and (b) the denominator is the
Exercise  Price  in effect on the date of such exercise (taking into account the
provisions of this Section 4).

     5.  Certificate  as  to  Adjustments.  In  each  case  of any adjustment or
         --------------------------------
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise  of  this  Warrant,  the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute

<PAGE>

such adjustment or readjustment in accordance with the terms of this Warrant and
prepare  a certificate setting forth such adjustment or readjustment and showing
in  detail  the  facts  upon  which  such  adjustment  or readjustment is based,
including  a  statement  of  (a) the consideration received or receivable by the
Company  for  any additional shares of Common Stock (or Other Securities) issued
or  sold  or  deemed  to  have  been issued or sold, (b) the number of shares of
Common  Stock (or Other Securities) outstanding or deemed to be outstanding, and
(c)  the  Exercise Price and the number of shares of Common Stock to be received
upon exercise of this Warrant, in effect immediately prior to such adjustment or
readjustment  and  as  adjusted  or  readjusted as provided in this Warrant. The
Company  will  forthwith  mail a copy of each such certificate to the Holder and
any Warrant agent of the Company (appointed pursuant to Section 11 hereof).

     6. Reservation of Stock, Etc., Issuable on Exercise of Warrant. The Company
        -----------------------------------------------------------
will  at  all times reserve and keep available, solely for issuance and delivery
on  the  exercise  of this Warrant, shares of Common Stock (or Other Securities)
from time to time issuable on the exercise of this Warrant.

     7.  Assignment;  Exchange of Warrant. Subject to compliance with applicable
         --------------------------------
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by  any  registered  holder  hereof (a "Transferor") in whole or in
part.  On  the  surrender  for  exchange  of this Warrant, with the Transferor's
endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the  "Transferor
Endorsement  Form")  and  together  with evidence reasonably satisfactory to the
Company  demonstrating  compliance  with applicable securities laws, which shall
include,  without  limitation,  the  provision  of  a  legal  opinion  from  the
Transferor's  counsel  (at  the  Company's expense) that such transfer is exempt
from the registration requirements of applicable securities laws, the Company at
its  expense  (but  with  payment  by  the Transferor of any applicable transfer
taxes) will issue and deliver to or on the order of the Transferor thereof a new
Warrant  of  like  tenor, in the name of the Transferor and/or the transferee(s)
specified  in such Transferor Endorsement Form (each a "Transferee"), calling in
the  aggregate  on  the face or faces thereof for the number of shares of Common
Stock  called  for  on  the  face  or faces of the Warrant so surrendered by the
Transferor.

     8.  Replacement  of Warrant. On receipt of evidence reasonably satisfactory
         -----------------------
to  the  Company  of  the loss, theft, destruction or mutilation of this Warrant
and,  in  the  case  of  any such loss, theft or destruction of this Warrant, on
delivery  of  an indemnity agreement or security reasonably satisfactory in form
and  amount  to the Company or, in the case of any such mutilation, on surrender
and  cancellation  of  this Warrant, the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

     9.  Registration  Rights.  The Holder has been granted certain registration
         --------------------
rights by the Company. These registration rights are set forth in a Registration
Rights  Agreement  entered  into  by the Company and Holder dated as of the date
hereof, as the same may be amended, modified or supplemented from time to time.

     10.  Maximum  Exercise.  Notwithstanding  anything  contained herein to the
          -----------------
contrary,  the  Holder  shall  not  be  entitled  to  exercise  this  Warrant in
connection  with  that  number  of shares of Common Stock which would exceed the
difference  between  (i)  4.99%  of  the issued and outstanding shares of Common

<PAGE>

Stock  and  (ii)  the number of shares of Common Stock beneficially owned by the
Holder.  For  the  purposes  of  the  immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange  Act  of  1934,  as  amended,  and  Regulation  13d-3  thereunder.  The
limitation  described  in  the  first  sentence  of  this  Section  10  shall
automatically  become  null  and  void  following notice to the Company upon the
occurrence  and  during  the  continuance  of  an  Event of Default under and as
defined  in the Note made by the Company to the Holder dated the date hereof (as
amended,  modified  or  supplemented  from time to time, the "Note"), or upon 75
days prior notice to the Company.

     11.  Warrant Agent. The Company may, by written notice to the Holder of the
          -------------
Warrant,  appoint  an  agent  for  the purpose of issuing Common Stock (or Other
Securities)  on  the  exercise of this Warrant pursuant to Section 1, exchanging
this  Warrant  pursuant  to  Section  7,  and replacing this Warrant pursuant to
Section  8,  or any of the foregoing, and thereafter any such issuance, exchange
or replacement, as the case may be, shall be made at such office by such agent.

     12.  Transfer  on the Company's Books. Until this Warrant is transferred on
          --------------------------------
the  books of the Company, the Company may treat the registered Holder hereof as
the  absolute  owner  hereof for all purposes, notwithstanding any notice to the
contrary.

     13.  Notices, Etc. All notices and other communications from the Company to
          ------------
the  Holder shall be mailed by first class registered or certified mail, postage
prepaid, at such address as may have been furnished to the Company in writing by
such  Holder or, until any such Holder furnishes to the Company an address, then
to,  and  at  the address of, the last Holder who has so furnished an address to
the Company.

     14. Miscellaneous. This Warrant and any term hereof may be changed, waived,
         -------------
discharged  or  terminated  only by an instrument in writing signed by the party
against  which  enforcement  of such change, waiver, discharge or termination is
sought.  THIS  WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY
ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE
BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN
THE  STATE  OF  NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE
THIS  PROVISION  AND  BRING  AN  ACTION  OUTSIDE  THE  STATE  OF  NEW  YORK. The
individuals  executing  this Warrant on behalf of the Company agree to submit to
the  jurisdiction  of  such courts and waive trial by jury. The prevailing party
shall be entitled to recover from the other party its reasonable attorneys' fees
and  costs.  In  the  event  that  any  provision  of this Warrant is invalid or
unenforceable  under  any applicable statute or rule of law, then such provision
shall  be  deemed  inoperative  to the extent that it may conflict therewith and
shall  be  deemed modified to conform with such statute or rule of law. Any such
provision  which  may  prove  invalid  or  unenforceable under any law shall not
affect  the  validity  or enforceability of any other provision of this Warrant.
The  headings  in this Warrant are for purposes of reference only, and shall not
limit or otherwise affect any of the terms hereof. The Company acknowledges that
legal  counsel  participated  in the preparation of this Warrant and, therefore,
stipulates  that  the  rule  of construction that ambiguities are to be resolved
against  the  drafting  party shall not be applied in the interpretation of this
Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>

     IN  WITNESS  WHEREOF,  the Company has executed this Warrant as of the date
first written above.

                                                NEW CENTURY ENERGY CORP.

WITNESS:
                                                By:/s/ Edward R. DeStefano
                                                   -----------------------------
                                                Name: Edward R. DeStefano
/s/ Kimberly Newman                                  ---------------------------
----------------------------------              Title: President
    Kimberly Newman                                   --------------------------

<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:  New  Century  Energy  Corp.
     5851  San  Felipe,  Suite  775
     Houston,  Texas  77057

     Attention:     Chief  Financial  Officer

     The  undersigned,  pursuant  to  the  provisions  set forth in the attached
Warrant  (No. L-1), hereby irrevocably elects to purchase          shares of the
                                                          ---------
Common Stock covered by such Warrant.

     The  undersigned herewith makes payment of the full Exercise Price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$           .  Such payment takes the form of $           in lawful money of the
 -----------                                    ----------
United States.

     The undersigned requests that the certificates for such shares be issued in
the  name  of,  and  delivered to
                                  ----------------------------------------------
whose  address  is
                  -------------------------------------------------------------.

     The  undersigned  represents  and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as  amended  (the  "Securities  Act")  or  pursuant  to an exemption from
registration under the Securities Act.

Dated:
      ----------------------------------     -----------------------------------
                                            (Signature must conform to name of
                                             holder as specified on the face of
                                             the Warrant)

                                             Address:
                                                     ---------------------------

                                                     ---------------------------

                                                     ---------------------------

<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

     For  value  received,  the undersigned hereby sells, assigns, and transfers
unto  the  person(s)  named  below  under  the  heading  "Transferees" the right
represented  by  the  within  Warrant  to  purchase the percentage and number of
shares of Common Stock of New Century Energy Corp. into which the within Warrant
relates  specified  under  the  headings  "Percentage  Transferred"  and "Number
Transferred,"  respectively, opposite the name(s) of such person(s) and appoints
each  such  person attorney to transfer its respective right on the books of New
Century  Energy  Corp.  with  full  power  of  substitution  in  the  premises.

<TABLE>
<CAPTION>

                                    Percentage           Number
Transferees        Address          Transferred        Transferred
-----------        -------          -----------        -----------
<S>                  <C>              <C>                 <C>

-----------------  --------------   ----------------   ----------------

-----------------  --------------   ----------------   ----------------

-----------------  --------------   ----------------   ----------------

-----------------  --------------   ----------------   ----------------
</TABLE>

Dated:
      -----------------------------         -------------------------------
                                           (Signature must conform to name of
                                            holder as specified on the face of
                                            the Warrant)

                                            Address:
                                                    --------------------------

                                                    --------------------------

                                           SIGNED IN THE PRESENCE OF:

                                           -----------------------------------
                                                         (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

--------------------------------------
               (Name)

<PAGE>MASTER SECURITY AGREEMENT

To:     Laurus Master Fund, Ltd.
        c/o M&C Corporate Services Limited
        P.O. Box 309 GT
        Ugland House
        South Church Street
        George Town
        Grand Cayman, Cayman Islands

Date:  June  30,  2005

To  Whom  It  May  Concern:

     1.  To  secure  the  payment of all Obligations (as hereafter defined), New
Century  Energy Corp., a Colorado corporation (the "Company"), each of the other
undersigned  parties  (other  than Laurus Master Fund, Ltd. ("Laurus")) and each
other entity that is required to enter into this Master Security Agreement (each
an  "Assignor"  and, collectively, the "Assignors") hereby assigns and grants to
Laurus a continuing security interest in all of the following property now owned
or  at  any  time hereafter acquired by such Assignor, or in which such Assignor
now  has  or  at any time in the future may acquire any right, title or interest
(the  "Collateral"):  all cash, cash equivalents, accounts, accounts receivable,
deposit accounts (including, without limitation, the Lockbox Deposit Account (as
hereafter  defined)),  inventory,  equipment,  goods,  fixtures,  documents,
instruments  (including, without limitation, promissory notes), contract rights,
general  intangibles  (including, without limitation, payment intangibles and an
absolute  right  to  license  on terms no less favorable than those currently in
effect among such Assignor's affiliates), chattel paper, supporting obligations,
investment  property  (including, without limitation, all equity interests owned
by  any  Assignor), letter-of-credit rights, trademarks, trademark applications,
tradestyles,  patents,  patent  applications, copyrights, copyright applications
and  other intellectual property in which such Assignor now has or hereafter may
acquire  any  right,  title  or  interest,  all  proceeds  and  products thereof
(including,  without  limitation,  proceeds  of  insurance)  and  all additions,
accessions  and  substitutions  thereto  or  therefor. In the event any Assignor
wishes  to  finance  the  acquisition  in the ordinary course of business of any
hereafter  acquired  equipment  and  has  obtained  a written commitment from an
unrelated  third  party financing source to finance such equipment, Laurus shall
release  its  security interest on such hereafter acquired equipment so financed
by  such  third  party financing source. Except as otherwise defined herein, all
capitalized terms used herein shall have the meanings provided such terms in the
Securities Purchase Agreement (as defined below).

<PAGE>

     2.  The term "Obligations" as used herein shall mean and include all debts,
liabilities  and obligations owing by each Assignor to Laurus arising under, out
of,  or  in connection with (i) that certain Securities Purchase Agreement dated
as  of  the  date  hereof by and between the Company and Laurus (the "Securities
Purchase  Agreement")  and  (ii)  the  Related  Agreements  referred  to  in the
Securities  Purchase  Agreement  (the  Securities  Purchase  Agreement  and each
Related  Agreement,  as  each may be amended, modified, restated or supplemented
from  time  to  time, collectively, the "Documents"), and in connection with any
documents,  instruments or agreements relating to or executed in connection with
the Documents or any documents, instruments or agreements referred to therein or
otherwise,  and  in  connection  with  any  other  indebtedness,  obligations or
liabilities  of  each such Assignor to Laurus, whether now existing or hereafter
arising, direct or indirect, liquidated or unliquidated, absolute or contingent,
due or not due and whether under, pursuant to or evidenced by a note, agreement,
guaranty,  instrument  or  otherwise, including, without limitation, obligations
and  indebtedness  of  each Assignor for post-petition interest, fees, costs and
charges  that  accrue  after  the  commencement  of  any case by or against such
Assignor  under  any  bankruptcy,  insolvency, reorganization or like proceeding
(collectively,  the  "Debtor  Relief  Laws")  in  each case, irrespective of the
genuineness,  validity,  regularity or enforceability of such Obligations, or of
any  instrument  evidencing any of the Obligations or of any collateral therefor
or  of  the  existence  or  extent  of  such collateral, and irrespective of the
allowability,  allowance or disallowance of any or all of the Obligations in any
case commenced by or against any Assignor under any Debtor Relief Law.

     3.  Each  Assignor  hereby  jointly  and severally represents, warrants and
covenants to Laurus that:

          (a)  it is a corporation, partnership or limited liability company, as
     the  case  may  be, validly existing, in good standing and formed under the
     respective  laws  of its jurisdiction of formation set forth on Schedule A,
     and  each  Assignor  will  provide  Laurus  thirty (30) days' prior written
     notice of any change in any of its respective jurisdiction of formation;

          (b) its legal name is as set forth in its Certificate of Incorporation
     or  other  organizational  document  (as applicable) as amended through the
     date  hereof  and  as  set  forth on Schedule A, and it will provide Laurus
     thirty (30) days' prior written notice of any change in its legal name;

          (c) its organizational identification number (if applicable) is as set
     forth  on  Schedule  A hereto, and it will provide Laurus thirty (30) days'
     prior  written  notice  of  any change in its organizational identification
     number;

          (d) it is the lawful owner of its Collateral and it has the sole right
     to grant a security interest therein and will defend the Collateral against
     all claims and demands of all persons and entities;

          (e)  it  will  keep  its Collateral free and clear of all attachments,
     levies, taxes, liens, security interests and encumbrances of every kind and
     nature  ("Encumbrances"),  except (i) Encumbrances securing the Obligations
     and  (ii)  Encumbrances  securing indebtedness of each such Assignor not to
     exceed $200,000 in the aggregate for all such Assignors so long as all such
     Encumbrances  are  removed  or  otherwise  released to Laurus' satisfaction
     within ten (10) days of the creation thereof;

          (f)  it  will,  at its and the other Assignors' joint and several cost
     and  expense keep the Collateral in good state of repair (ordinary wear and
     tear  excepted)  and will not waste or destroy the same or any part thereof
     other  than ordinary course discarding of items no longer used or useful in
     its or such other Assignors' business;

<PAGE>

          (g)  it  will  not,  without  Laurus'  prior  written  consent,  sell,
     exchange,  lease  or  otherwise dispose of any Collateral, whether by sale,
     lease or otherwise, except for the sale of inventory in the ordinary course
     of  business  and for the disposition or transfer in the ordinary course of
     business  during  any  fiscal  year  of  obsolete and worn-out equipment or
     equipment  no  longer  necessary for its ongoing needs, having an aggregate
     fair market value of not more than $100,000 and only to the extent that:

               (i)  the  proceeds  of  each such disposition are used to acquire
          replacement  Collateral  which  is  subject  to Laurus' first priority
          perfected  security  interest, or are used to repay the Obligations or
          to pay general corporate expenses; or

               (ii)  following  the  occurrence  of  an  Event  of Default which
          continues  to exist the proceeds of each such disposition are remitted
          to Laurus to be held as cash collateral for the Obligations;

          (h)  it  will  insure or cause the Collateral to be insured in Laurus'
     name (as additional insured and loss payee) against loss or damage by fire,
     theft,  burglary,  pilferage,  loss  in  transit  and such other hazards as
     Laurus  shall  specify in amounts and under policies by insurers acceptable
     to  Laurus  and all premiums thereon shall be paid by such Assignor and the
     policies  delivered  to Laurus. If any such Assignor fails to do so, Laurus
     may  procure  such  insurance  and  the  cost  thereof  shall  be  promptly
     reimbursed  by  the  Assignors, jointly and severally, and shall constitute
     Obligations;

          (i)  it  will  at  all  reasonable  times  allow  Laurus  or  Laurus'
     representatives  free  access  to  and  the  right  of  inspection  of  the
     Collateral;

          (j)  such  Assignor  (jointly  and severally with each other Assignor)
     hereby  indemnifies and saves Laurus harmless from all loss, costs, damage,
     liability and/or expense, including reasonable attorneys' fees, that Laurus
     may  sustain or incur to enforce payment, performance or fulfillment of any
     of  the  Obligations  and/or  in  the  enforcement  of this Master Security
     Agreement  or  in  the  prosecution  or defense of any action or proceeding
     either  against Laurus or any Assignor concerning any matter growing out of
     or  in  connection  with  this Master Security Agreement, and/or any of the
     Obligations  and/or  any  of  the Collateral except to the extent caused by
     Laurus'  own  gross  negligence  or  willful misconduct (as determined by a
     court of competent jurisdiction in a final and nonappealable decision); and

<PAGE>

          (k)  On  or  prior  to  the  Closing  Date,  each  Assignor  will  (i)
     irrevocably  direct  all  of  its  present  and  future Account Debtors (as
     defined  below)  and  other  persons or entities obligated to make payments
     constituting  Collateral  to  make  such payments directly to the lockboxes
     maintained  by  such Assignor (the "Lockboxes") with JPMorgan Chase Bank or
     such  other  financial  institution accepted by Laurus in writing as may be
     selected  by the Company (the "Lockbox Bank") (each such direction pursuant
     to  this  clause  (i),  a  "Direction Notice") and (ii) provide Laurus with
     copies  of  each  Direction  Notice,  each  of which shall be agreed to and
     acknowledged  by  the  respective  Account  Debtor.  Upon  receipt  of such
     payments,  the  Lockbox  Bank  shall  agree to deposit the proceeds of such
     payments in that certain deposit account maintained at the Lockbox Bank and
     evidenced  by  the  account  name  of the Company and the account number of
     1513800711-65,  or such other deposit account accepted by Laurus in writing
     (the  "Lockbox  Deposit  Account").  On  or  prior to the Closing Date, the
     Company  shall  and  shall  cause  the  Lockbox Bank to enter into all such
     documentation  acceptable  to Laurus pursuant to which, among other things,
     the  Lockbox  Bank  agrees  to,  following  notification  by  Laurus (which
     notification Laurus shall only give following the occurrence and during the
     continuance  of  an Event of Default), comply only with the instructions or
     other  directions  of Laurus concerning the Lockbox and the Lockbox Deposit
     Account.  All  of  each  Assignor's  invoices, account statements and other
     written  or  oral  communications  directing,  instructing,  demanding  or
     requesting  payment  of  any  Account  (as hereinafter defined) of any such
     Assignor  or  any  other amount constituting Collateral shall conspicuously
     direct  that  all  payments be made to the Lockbox or such other address as
     Laurus  may  direct  in  writing.  If,  notwithstanding the instructions to
     Account  Debtors,  any  Assignor receives any payments, such Assignor shall
     immediately  remit  such  payments  to the Lockbox Deposit Account in their
     original  form  with  all  necessary  endorsements.  Until so remitted, the
     Assignors  shall hold all such payments in trust for and as the property of
     Laurus and shall not commingle such payments with any of its other funds or
     property. For the purpose of this Master Security Agreement, (x) "Accounts"
     shall  mean  all  "accounts",  as  such  term  is  defined  in  the Uniform
     Commercial  Code  as in effect in the State of New York on the date hereof,
     now  owned  or  hereafter acquired by any Assignor and (y) "Account Debtor"
     shall mean any person or entity who is or may be obligated with respect to,
     or on account of, an Account.

     4.  The  occurrence  of  any  of  the  following events or conditions shall
constitute an "Event of Default" under this Master Security Agreement:

          (a)  any  covenant  or  any  other  term  or  condition of this Master
     Security  Agreement is breached in any material respect and such breach, if
     subject to cure, shall continue for a period of fifteen (15) days after the
     occurrence thereof;

          (b)  any representation or warranty, or statement made or furnished to
     Laurus  under  this  Master  Security  Agreement  by any Assignor or on any
     Assignor's behalf should at any time be false or misleading in any material
     respect;

          (c)  the  loss,  theft,  substantial  damage,  destruction,  sale  or
     encumbrance  to  or  of  any  of  the Collateral or the making of any levy,
     seizure or attachment thereof or thereon except to the extent:

               (i)  such loss is covered by insurance proceeds which are used to
          replace the item or repay Laurus; or

               (ii)  said  levy,  seizure  or  attachment  does  not  secure
          indebtedness  in excess of $100,000 in the aggregate for all Assignors
          and  such  levy,  seizure  or attachment has been removed or otherwise
          released  within  ten  (10)  days  of  the  creation  or the assertion
          thereof;

<PAGE>

          (d)  an  Event  of Default shall have occurred under and as defined in
     any Document.

     5.  Upon the occurrence of any Event of Default and at any time thereafter,
Laurus  may declare all Obligations immediately due and payable and Laurus shall
have  the remedies of a secured party provided in the Uniform Commercial Code as
in  effect  in  the  State of New York, this Agreement and other applicable law.
Upon  the  occurrence of any Event of Default and at any time thereafter, Laurus
will  have  the  right to take possession of the Collateral and to maintain such
possession  on  any  Assignor's premises or to remove the Collateral or any part
thereof  to such other premises as Laurus may desire. Upon Laurus' request, each
Assignor  shall  assemble  or  cause  the Collateral to be assembled and make it
available  to  Laurus  at  a  place designated by Laurus. If any notification of
intended disposition of any Collateral is required by law, such notification, if
mailed,  shall  be  deemed  properly and reasonably given if mailed at least ten
(10)  days before such disposition, postage prepaid, addressed to the applicable
Assignor  either  at  such  Assignor's  address  shown  herein or at any address
appearing  on Laurus' records for such Assignor. Any proceeds of any disposition
of  any  of  the  Collateral  shall  be  applied by Laurus to the payment of all
expenses  in  connection  with  the sale of the Collateral, including reasonable
attorneys'  fees  and  other legal expenses and disbursements and the reasonable
expenses  of  retaking,  holding, preparing for sale, selling, and the like, and
any  balance of such proceeds may be applied by Laurus toward the payment of the
Obligations  in such order of application as Laurus may elect, and each Assignor
shall  be  liable  for any deficiency. For the avoidance of doubt, following the
occurrence  and during the continuance of an Event of Default, Laurus shall have
the  immediate  right  to  withdraw  any and all monies contained in any Lockbox
Deposit  Account  or  any other deposit accounts in the name of the Assignor and
controlled by Laurus and apply same to the repayment of the Obligations (in such
order of application as Laurus may elect).

     6. If any Assignor defaults in the performance or fulfillment of any of the
terms,  conditions,  promises,  covenants,  provisions  or  warranties  on  such
Assignor's  part  to  be performed or fulfilled under or pursuant to this Master
Security  Agreement,  Laurus  may,  at  its option, without waiving its right to
enforce this Master Security Agreement according to its terms, immediately or at
any  time  thereafter and without notice to any Assignor, perform or fulfill the
same  or  cause  the  performance or fulfillment of the same for each Assignor's
joint  and  several  account  and  at each Assignor's joint and several cost and
expense, and the cost and expense thereof (including reasonable attorneys' fees)
shall  be  added to the Obligations and shall be payable on demand with interest
thereon  at the highest rate permitted by law, or, at Laurus' option, debited by
Laurus  from  the  Lockbox  Deposit Account or any other deposit accounts in the
name of the Assignor and controlled by Laurus.

     7. Each Assignor appoints Laurus, any of Laurus' officers, employees or any
other  person  or  entity whom Laurus may designate as such Assignor's attorney,
with  power  to  execute  such  documents  in each such Assignor's behalf and to
supply  any  omitted  information  and  correct  patent  errors in any documents
executed  by  any  Assignor  or  on  any  Assignor's  behalf;  to file financing
statements  against  such  Assignor  covering the Collateral (and, in connection
with  the  filing  of  any such financing statements, describe the Collateral as
"all  assets  and  all  personal  property,  whether  now owned and/or hereafter
acquired"  (or  any  substantially  similar  variation  thereof));  to sign such
Assignor's  name  on  public  records;  and  to  do all other things Laurus deem
necessary  to  carry  out  this  Master Security Agreement. Each Assignor hereby
ratifies  and  approves  all  acts  of  the  attorney and neither Laurus nor the
attorney  will  be  liable  for  any acts of commission or omission, nor for any
error  of  judgment  or  mistake  of  fact or law other than gross negligence or
willful  misconduct  (as  determined  by  a court of competent jurisdiction in a
final  and  non-appealable decision). This power being coupled with an interest,
is irrevocable so long as any Obligations remains unpaid.

<PAGE>

     8.  No  delay or failure on Laurus' part in exercising any right, privilege
or  option  hereunder  shall  operate as a waiver of such or of any other right,
privilege,  remedy  or option, and no waiver whatsoever shall be valid unless in
writing,  signed by Laurus and then only to the extent therein set forth, and no
waiver  by  Laurus of any default shall operate as a waiver of any other default
or  of  the  same  default  on  a  future  occasion.  Laurus'  books and records
containing  entries  with  respect  to  the  Obligations  shall be admissible in
evidence  in  any  action or proceeding, shall be binding upon each Assignor for
the  purpose  of  establishing  the items therein set forth and shall constitute
prima  facie  proof  thereof.  Laurus shall have the right to enforce any one or
more  of  the  remedies  available  to  Laurus,  successively,  alternately  or
concurrently.  Each  Assignor  agrees  to  join  with  Laurus  in executing such
documents  or other instruments to the extent required by the Uniform Commercial
Code  in  form  satisfactory  to Laurus and in executing such other documents or
instruments  as  may  be  required or deemed necessary by Laurus for purposes of
affecting or continuing Laurus' security interest in the Collateral.

     9.  This  Master  Security Agreement shall be governed by and construed and
enforced  in  accordance  with  the  laws of the State of New York applicable to
contracts  made and performed in such state and cannot be terminated orally. All
of  the  rights,  remedies,  options,  privileges  and elections given to Laurus
hereunder shall inure to the benefit of Laurus' successors and assigns. The term
"Laurus"  as  herein  used  shall  include  Laurus, any parent of Laurus, any of
Laurus'  subsidiaries  and  any  co-subsidiaries  of Laurus' parent, whether now
existing  or  hereafter  created  or acquired, and all of the terms, conditions,
promises,  covenants, provisions and warranties of this Agreement shall inure to
the  benefit  of  each  of  the  foregoing,  and shall bind the representatives,
successors and assigns of each Assignor.

     10.  Each  Assignor  hereby  consents  and agrees that the state or federal
courts located in the County of New York, State of New York shall have exclusive
jurisdiction  to  hear and determine any claims or disputes between Assignor, on
the  one hand, and Laurus, on the other hand, pertaining to this Master Security
Agreement  or  to  any  matter arising out of or related to this Master Security
Agreement, provided, that Laurus and each Assignor acknowledges that any appeals
from  those courts may have to be heard by a court located outside of the County
of  New  York,  State  of  New  York, and further provided, that nothing in this
Master  Security  Agreement  shall  be  demed or operate to preclude Laurus from
bringing  suit or taking other legal action in any other jurisdiction to collect
on  the  Obligations, to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Laurus.

<PAGE>

Each  Assignor expressly submits and consents in advance to such jurisdiction in
any  action or suit commenced in any such court, and each Assignor hereby waives
any  objection  which  it  may  have  based  upon lack of personal jurisdiction,
improper  venue  or  forum non conveniens.  Each Assignor hereby waives personal
                     --------------------
service of the summons, complaint and other process issues in any such action or
suit and agrees that service of such summons, complaint and other process may be
made  by  registered or certified mail addressed to such assignor at the address
set forth on the signature lines hereto and that service so made shall be deemed
completed  upon  the  earlier of such Assignor's actual receipt thereof or three
(3)  days  after  deposit  in  the  U.S.  mails,  proper  postage  prepaid.

     The parties desire that their disputes be resolved by a judge applying such
applicable  laws.  Therefore, to achieve the best combination of the benefits of
the  judicial  system and of arbitration, the parties hereto waive all rights to
trial by jury in any action, suit, or proceeding brought to resolve any dispute,
whether  arising  in  contract,  tort,  or  otherwise  between Laurus and/or any
Assignor  arising  out  of,  connected  with,  related  or  incidental  to  the
relationship  established  between  them in connection with this Master Security
Agreement  or  the  transactions  related  hereto.

     11.  It  is understood and agreed that any person or entity that desires to
become  an  Assignor  hereunder, or is required to execute a counterpart of this
Master  Security Agreement after the date hereof pursuant to the requirements of
any  Document,  shall  become  an  Assignor hereunder by (a) executing a Joinder
Agreement  in  form  and  substance  satisfactory  to  Laurus,  (b)  delivering
supplements  to  such  exhibits  and  annexes  to such Documents as Laurus shall
reasonably  request  and  (c)  taking  all  actions  as specified in this Master
Security  Agreement  as  would  have  been taken by such Assignor had it been an
original  party  to  this  Master  Security  Agreement,  in  each  case with all
documents  required  above  to be delivered to Laurus and with all documents and
actions required above to be taken to the reasonable satisfaction of Laurus.

<PAGE>

     12.  All notices from Laurus to any Assignor shall be sufficiently given if
mailed  or  delivered  to  such  Assignor's  address set forth below.

                                              Very truly yours,

                                              NEW CENTURY ENERGY CORP.

                                              By: /s/ Edward R. DeStefano
                                                   ---------------------------
                                              Name:   Edward R. DeStefano
                                              Title:  President
                                              Address: 5851 San Felipe
                                                       Suite 775
                                                       Houston, TX 77057

                                              CENTURY RESOURCES, INC.

                                              By: /s/ Edward R. DeStefano
                                                   ---------------------------
                                              Name:   Edward R. DeStefano
                                              Title:  President
                                              Address: 5851 San Felipe
                                                       Suite 775
                                                       Houston, TX 77057

                                              ACKNOWLEDGED:

                                              LAURUS MASTER FUND, LTD.

                                              By: /s/ Eugene Grin
                                                   ---------------------------
                                              Name:   Eugene Grin
                                              Title:  Director

<PAGE>

                                   SCHEDULE A

                                Jurisdiction of      Organization Identification
        Entity                     Formation                  Number
-----------------------         ---------------      ---------------------------
New Century Energy Corp.          Colorado            20031402340

Century Resources, Inc.           Delaware            2029277

<PAGE>

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