Document:

EXHIBIT 10.21

                          MEMBERSHIP PURCHASE AGREEMENT

                                  BY AND AMONG

                      CONTINENTAL SOUTHERN RESOURCES, INC.

                              A NEVADA CORPORATION
                                   (PURCHASER)

                                       AND

                                  BWP GAS, LLC,
                      A DELAWARE LIMITED LIABILITY COMPANY
                                    (COMPANY)

                                       AND

                                  HBA GAS, INC.
                                (CLASS B MEMBER)

                                  MAY 27, 2003

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                          MEMBERSHIP PURCHASE AGREEMENT

                  THIS MEMEBERSHIP  PURCHASE AGREEMENT (the  "Agreement"),  made
this 27th day of May, 2003, by and among Continental Southern Resources, Inc., a
Nevada  corporation,  ("Purchaser"),  BWP Gas, LLC, a Delaware limited liability
company  (the  "Company"),  and HBA Gas,  Inc.  the  owner of all of the  issued
outstanding Class B Membership Interests of the Company (the "Class B Member").

WITNESSETH:

                  WHEREAS,  the Class B Member owns  beneficially  and of record
100% of the issued and outstanding  Class B Membership  interests of the Company
(the "Interests"); and

                  WHEREAS,  the Class B Member  desires to sell,  and  Purchaser
desires to purchase, all of the Interests for the consideration and on the terms
set forth herein.

                  NOW,  THEREFORE,  for and in consideration of the premises and
the mutual  covenants and  agreements set forth in this Agreement and other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree
as follows:

ARTICLE I   SALE AND TRANSFER OF INTERESTS

         1.1. SALE AND PURCHASE OF THE INTERESTS.

         In  reliance  upon  the   representations,   warranties  and  covenants
contained in this Agreement, the Purchaser agrees to purchase the Interests from
the Class B Member,  and the Class B Member  agrees to sell,  transfer,  convey,
assign and deliver the Interests to the  Purchaser,  on the terms and conditions
set forth in this Agreement,  such sale,  transfer,  conveyance,  assignment and
delivery of the Interests causing the entire right, title and interest in and to
the Interests to be transferred  beneficially  and of record to Purchaser,  free
and clear of any Encumbrances or Rights of any kind or nature whatsoever; and at
such time the Interests will be fully paid and non-assessable. At the closing of
the transactions described in this Agreement (the "Closing"), the Class B Member
will deliver to the Purchaser  certificates,  if any,  evidencing  the Interests
duly endorsed in blank or with stock powers duly executed by the Class B Member.
In consideration thereof,  Purchaser shall pay and deliver to the Class B Member
the purchase  price for the  Interests  set forth in Section 1.2 and execute and
deliver such other  documents,  agreements,  consents and  approvals as provided
herein.

         1.2. PURCHASE PRICE.

                  (a) The  purchase  price  for  the  Interests  (the  "Purchase
Price") shall be (i) 3,300,000 shares (the "Shares") of common stock,  $.001 par
value per share,  of the Company  (the  "Common  Stock");  and (ii)  immediately
exercisable warrants (the "Warrants") to purchase an additional 1,650,000 shares
of  Common  Stock at an  exercise  price of $2.00  per share for a term of three
years, in the form attached hereto as Exhibit A. The Shares, Warrants and shares
of Common Stock issuable upon exercise of the Warrants are hereinafter  referred
to collectively as the "Securities."

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ARTICLE II CLOSING

         2.1      CLOSING DATE.
                  ------------

         The Closing of the purchase and sale of the Interests  shall take place
at the office of the  Company  or any other  location  agreed to by the  parties
concurrent with the execution and delivery of this Agreement.

         2.2      CLOSING TRANSACTIONS.

         At the Closing,  the following  transactions  shall occur,  all of such
transactions being deemed to occur simultaneously:

                  (a) The Class B Member  shall  deliver  to the  Purchaser  the
following:

                         (1) A certificate or certificates, if any, representing
all of the Interests duly endorsed by the Class B Member in blank or accompanied
by assignments separate from certificate duly endorsed in blank;

                         (2) A  General  Release  executed  by  Michael  Marcus,
MarGas, Investments,  LLC and any other Person to which the Company was indebted
to prior to Closing or which had any claim of any kind against the Company prior
to Closing, in form and substance acceptable to the Purchaser; and

                         (3) Such other  documents,  agreements,  consents,  and
approvals as are required under this Agreement or as may be reasonably requested
by the Purchaser.

                    (b)  Purchaser  will  deliver  to the  Class  B  Member  the
following:

                         (1)  Certificates  evidencing the Shares  registered in
the name of the Class B Member  or its  designees  in  accordance  with  written
instructions to be provided by the Class B Member; and

                         (2)  Warrants  registered  in the  name of the  Class B
Member or its designees in accordance  with written  instructions to be provided
by the Class B Member.

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE CLASS B MEMBER

         As a material  inducement  to Purchaser to execute this  Agreement  and
consummate the transactions  contemplated  hereby, the Class B Member represents
to the Purchaser that the following  representations and warranties are true and
correct.

         3.1  ORGANIZATION, QUALIFICATION AND STATUS.

         The Company is a limited  liability  company  duly  organized,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
formation.  The Company has full power and

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authority to own,  lease and use its  properties and to carry on its business as
presently conducted. To the best of the Class B Member's knowledge,  the Company
is duly  qualified or licensed to do business and in good  standing as a foreign
company in each of the  jurisdictions in which the nature of its business or the
character  of the  properties  and  assets  which it owns or leases  makes  such
qualification or licensing necessary.

         3.2      OPERATING AGREEMENT.

         The copy of the  Operating  Agreement  of the Company  (the  "Operating
Agreement"),  attached  hereto  and made a part  hereof  as  Exhibit  B is true,
correct and complete includes all amendments to the date hereof.

         3.3      CAPITALIZATION.

          All of the Interests are held  beneficially and of record by the Class
B Member. All of the Interests are validly issued, fully paid and non-assessable
and  entitled to the rights set forth in the  Operating  Agreement.  None of the
Interests are subject to any  preemptive or other right created by statute,  the
Company's  certificate of organization,  Operating Agreement or by contract,  or
otherwise. There are no authorized or outstanding options, warrants, convertible
securities,  subscription rights, puts, calls, unsatisfied pre-emptive rights or
other rights of any nature to purchase or otherwise  receive,  or to require the
Company to purchase,  redeem or acquire, any membership interests of the Company
and there is no outstanding security of any kind convertible into any membership
interests of the Company.

         3.4      OWNERSHIP OF INTERESTS.

         The Class B Member  owns and holds,  beneficially  and of  record,  the
entire  right,  title and  interest in and to the  Interests,  free and clear of
Rights or  Encumbrances  of any kind or  nature  whatsoever  and such  Interests
constitute all of the issued and outstanding Class B Membership Interests of the
Company.  The Class B Member has the full power and authority to vote,  transfer
and  dispose  of the  Interests  owned by them,  free and  clear of any Right or
Encumbrance of any kind or nature whatsoever other than  restrictions  under the
Securities  Act, and  applicable  state  securities  laws.  At the Closing,  the
Purchaser will acquire good title to the Interests, free and clear of all Rights
and  Encumbrances.  Other than the transactions  contemplated by this Agreement,
there is no outstanding  vote,  plan,  pending  proposal,  or other right of any
Person to acquire, or to cause the redemption of, the Interests or to effect the
merger or consolidation of the Company with or into any other Person.

         3.5      AUTHORITY.

         The Class B Member and the Company  have the full  capacity,  power and
authority  to enter  into this  Agreement  and to  consummate  the  transactions
contemplated  hereby and to comply  with the terms,  conditions  and  provisions
hereof  and  hereof.  This  Agreement  has been duly  authorized,  executed  and
delivered by the Class B Member and the Company and are legal, valid and binding
obligations of the Class B Member and the Company,  enforceable  against each of
them in  accordance  with their  terms.  No notices to,  declaration,  filing or
registration  with,  approvals  or consents of, or  assignments  by, any Persons
(including Governmental Authorities) are necessary to be made or obtained by the
Company or the Class B Member in  connection  with the  execution,  delivery  or
performance by the Company or the Class B Member of this Agreement.

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         3.6      NO VIOLATION.

         The Company is not in default under or in violation of any provision of
(a) its certificate of formation or Operating  Agreement,  or (b) any agreement,
understanding,  arrangement,  indenture,  contract,  lease,  sublease,  license,
sublicense,   franchise,  loan  agreement,  note,  restriction,   obligation  or
liability  to  which it is a party or by which it is bound or to which it or its
assets  are  subject  (individually,   an  "Instrument"  and  collectively,  the
"Instruments").  Neither the  execution  and  delivery of this  Agreement by the
Class B  Members  or the  Company,  nor  the  consummation  of the  transactions
contemplated  hereby, nor compliance with the terms hereof or thereof,  will (i)
conflict  with  or  result  in a  breach  of  any of the  terms,  conditions  or
provisions  of the  certificate  of  formation  or  Operating  Agreement  of the
Company,  nor (ii)  violate,  conflict  with or result in a breach of or default
under any of the terms,  conditions or provisions of any  Instrument,  nor (iii)
accelerate  or give to others  any  interests  or  rights,  including  rights of
acceleration,  termination,  modification or cancellation, under any Instrument,
nor (iv) result in the creation of any Encumbrance on the assets,  capital stock
or  properties  of the Company,  nor (v) conflict  with,  violate or result in a
breach of or constitute a default under, any Applicable Law to which the Company
or any of its assets or properties  is subject,  nor (vi) require the Company or
the Class B Members  to give  notice to, or obtain an  authorization,  approval,
order, license, franchise, declaration or consent of, or make a filing with, any
Governmental Authority or any other Person.

         3.7      ASSETS  AND LIABILITIES.

         Upon completion of the transactions contemplated by this Agreement, the
sole assets and liabilities of the Company shall consist of the Company's rights
and obligations  under certain  Exploration  Agreements dated February 27, 2003,
and May 19, 2003, by and between BWP,  LLC, The GHK Company,  LLC and GHK Potato
Hills Limited  Partnership,  as amended to date (collectively,  the "Exploration
Agreements"),  a true,  correct,  and complete copy of May 19, 2003  Exploration
Agreement  is  attached  hereto  and  made a  part  hereof  as  Exhibit  C.  The
Exploration  Agreement  is valid,  binding and  enforceable  against the parties
thereto in accordance with its terms, neither the Company nor any other party is
in default or in arrears under the terms of the  Exploration  Agreement,  and no
condition exists or event has occurred which, with the giving of notice or lapse
of time or both,  would  constitute  a default  thereunder;  and the Company has
fulfilled,  or taken action to fulfill when due, all of its material obligations
under the Exploration Agreement.

         3.8      LITIGATION.

         There are no  actions,  suits or  proceedings  at law or in equity,  or
arbitration  proceedings,  or  claims,  demands  or  investigations,  pending or
threatened (i) against or involving the Company or any of its members,  managers
or agents (in their  capacity  as such),  (ii)  which  seeks to enjoin or obtain
damages in respect of the transactions  contemplated by this Agreement, or (iii)
which  would  prevent the Class B Members  from  consummating  the  transactions
contemplated by this Agreement.

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         3.9      COMPLIANCE WITH LAWS.

         The Company has complied in all material  respects with all  Applicable
Laws  applicable  to it and its business,  assets,  properties  and  operations.
Neither the Company nor the Class B Member has received any notice to the effect
that, or has been otherwise  advised that, the Company is not in compliance with
any Applicable Laws.  Neither the Company nor the Class B Member is aware of any
existing  circumstances  that are likely to result in any material  violation of
any Applicable Law.

         3.10     DISCLOSURE.

         No  representation  or warranty of the Class B Member in this Agreement
contains any untrue  statement of a material  fact, or omits to state a material
fact necessary to make the factual statements  contained herein, in light of the
circumstances under which such statements are made, not misleading. Neither this
Agreement nor any other document,  certificate,  exhibit,  statement or schedule
furnished  or to be  furnished  by or on  behalf  of the  Class B Member  to the
Purchaser in connection with the  transactions  contemplated  hereby contains or
will contain any untrue  statement of a material  fact, or omits or will omit to
state a  material  fact  necessary  to make  the  factual  statements  contained
therein, in light of the circumstances under which made, not misleading.

         3.11     ACCREDITED INVESTOR.

            The Class B Member has such knowledge and experience in business and
financial  matters such that he is capable of evaluating the merits and risks of
purchasing the  Securities.  Each Class B Member is an "accredited  investor" as
that term is defined in Rule 501 of Regulation D of the Act

         3.12     INVESTMENT INTENT.

                  The  Class B  Member  hereby  acknowledges  that  it has  been
advised that the issuance of the  Securities  has not been  registered  with, or
reviewed by, the Securities and Exchange  Commission ("SEC") as such issuance is
intended to be a private offering pursuant to Section 4(2) of the Securities Act
and Rule 506 of Regulation D thereunder.  The Class B Member represents that the
Securities are being acquired for its own account and not on behalf of any other
person, for investment  purposes only and not with a view towards  distribution.
The Class B Member  agrees that it will not attempt to sell,  transfer,  assign,
pledge or otherwise  dispose of all or any portion of the Securities unless they
are registered  under the Securities Act or an exemption from such  registration
is available.  The Class B Member  understands that the Securities have not been
registered  under the Securities Act by reason of a claimed  exemption under the
provisions  of the  Securities  Act  that  depends,  in part,  upon the  Class B
Member's investment intention.

         3.13     ACCESS TO INFORMATION.

         The  Class B  Member  has  had  access  to all  material  and  relevant
information  concerning the Company,  and its management,  financial  condition,
capitalization,  market  information,

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properties and prospects,  necessary to enable it to make an informed investment
decision  with respect to its  investment in the  Securities,  including but not
limited to, the Company's Annual Report on Form 10-KSB for the fiscal year ended
December 31, 2002,  which was filed with the SEC on or about April 17, 2003 (the
" Form 10-KSB") and the Company's  Quarterly Report on Form 10-QSB for the three
months ended March 31,  2003,  which was filed with the SEC on May 16, 2003 (the
"Form  10-QSB").  The Class B Member has  carefully  read and  reviewed,  and is
familiar with and  understands the contents of, the Form 10-KSB and Form 10-QSB,
including,  without limitation, the "Risk Factors" set forth in the Form 10-KSB.
The Class B Member acknowledges that it has had the opportunity to ask questions
of  and  receive  answers  from,  and to  obtain  additional  information  from,
representatives of the Company concerning the acquisition of the Securities, and
the present and proposed  business and financial  condition of the Company,  and
has had all such questions  answered to its  satisfaction  and has been supplied
with all information requested

         3.14 LEGEND ON CERTIFICATES.

         The Class B Member understands and acknowledges that the Securities and
any certificates issued in replacement therefor shall bear the following legend,
in addition to any other legend required by law or otherwise:

                  "THE SECURITIES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES
         REPRESENTED BY THIS CERTIFICATE HAVE BEEN TAKEN BY THE REGISTERED OWNER
         FOR INVESTMENT,  AND WITHOUT A VIEW TO RESALE OR DISTRIBUTION  THEREOF,
         AND  MAY  NOT  BE  TRANSFERRED  OR  DISPOSED  OF IN THE  ABSENCE  OF AN
         EFFECTIVE   REGISTRATION   STATEMENT  FOR  THE  SECURITIES   UNDER  THE
         SECURITIES ACT OF 1933, AS AMENDED,  AND APPLICABLE  SECURITIES LAWS OF
         ANY STATE OR OTHER JURISDICTION,  OR AN OPINION OF COUNSEL SATISFACTORY
         TO THE ISSUER THAT SUCH REGISTRATION STATEMENT IS NOT REQUIRED.

         3.16     BROKERS OR FINDERS.

         Neither the Company nor the Class B Member has incurred any  obligation
or liability,  contingent or otherwise, for brokerage or finders' fees or agents
commissions or similar payments in connection with this Agreement.

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER

         As a  material  inducement  to the  Class  B  Member  to  execute  this
Agreement and to consummate  the  transactions  contemplated  hereby,  Purchaser
represents  to the  Class  B  Member  that  the  following  representations  and
warranties are true and correct.

         4.1      ORGANIZATION AND QUALIFICATION.

         Purchaser is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation.  Purchaser has the
corporate  power and authority to

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carry on its business as  presently  conducted.  Purchaser is duly  qualified or
licensed to do business and in good standing as a foreign corporation in each of
the  jurisdictions  in which the nature of its business or the  character of the
properties  and  assets  which it owns or leases  makes  such  qualification  or
licensing  necessary  except  where  failure  to do so would not have a material
adverse effect on its business.

         4.2      AUTHORIZATION; VALID AND BINDING OBLIGATION.

         Purchaser has full corporate power and authority to execute and deliver
this Agreement and to perform its  obligations  hereunder and  thereunder.  This
Agreement  has been duly  executed and  delivered by Purchaser and is the legal,
valid and binding obligation of Purchaser,  enforceable against it in accordance
with its terms except as such  enforceability  may be limited by (i) bankruptcy,
insolvency,  moratorium,  reorganization  or other  similar  laws and  legal and
equitable  principles  limiting or affecting the rights of creditors  generally;
and/or (ii) general principles of equity,  regardless of whether considered in a
proceeding in equity or at law.

         4.3      INVESTMENT INTENT.

         Purchaser  acknowledges  that the  Interests  it is  acquiring  are not
registered  under the  Securities  Act or under any State  securities  law,  and
Purchaser is acquiring  the Interests for its own account and not with a view to
the  distribution  thereof within the meaning of Section 2(11) of the Securities
Act.

         4.4      DISCLOSURE.

         No representation  or warranty of Purchaser in this Agreement  contains
any untrue  statement  of a  material  fact,  or omits to state a material  fact
necessary  to make the  factual  statements  contained  herein,  in light of the
circumstances under which such statements are made, not misleading. Neither this
Agreement nor any other document,  certificate,  exhibit,  statement or schedule
furnished  or to be  furnished  by or on behalf of the  Purchaser to the Class B
Members in connection with the transactions contemplated hereby contains or will
contain any untrue  statement of a material fact, or omits or will omit to state
a material fact necessary to make the factual statements  contained therein,  in
light of the circumstances under which made, not misleading.

         4.5      BROKERS OR FINDERS.

                  Purchaser  and  its  officers  and  agents  have  incurred  no
obligations  or liability,  contingent  or otherwise,  for brokerage or finders'
fees or agents'  commissions or other similar  payments in connection  with this
Agreement.

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ARTICLE V         INDEMNIFICATION; SURVIVAL OF REPRESENTATIONS AND WARRANTIES

         5.1      INDEMNIFICATION.

                  (a)  The  Class  B  Member  shall  defend  and  hold  harmless
Purchaser  from and against any and all  demands,  claims,  actions or causes of
action, judgments,  assessments,  losses, liabilities,  damages or penalties and
reasonable  attorneys' fees and related disbursements  (collectively,  "Claims")
incurred by  Purchaser  which  arise out of or result from a  misrepresentation,
breach of  warranty,  or  breach of any  covenant  or  agreement  of the Class B
Members  contained  herein or in the  Schedules  annexed  hereto or in any deed,
exhibit,  closing certificate,  schedule or any ancillary  certificates or other
documents or instruments  furnished by the Class B Members pursuant hereto or in
connection with the transactions contemplated hereby or thereby.

                  (b) Purchaser  shall  indemnify,  defend and hold harmless the
Class B Member  from and  against  any and all  Claims  incurred  by the Class B
Member which arise out of or result from a misrepresentation, breach of warranty
or breach of any  covenant of  Purchaser  contained  herein or in the  Schedules
annexed hereto or in any deed,  exhibit,  closing  certificate,  schedule or any
ancillary  certificates or other documents or instruments furnished by Purchaser
pursuant hereto or in connection with the  transactions  contemplated  hereby or
thereby.

                  (c) The right to indemnification,  payment of damages or other
remedy  based on any  representations,  warranties,  covenants  and  obligations
contained in this Agreement will not be affected by any investigation  conducted
with respect to, or any knowledge acquired (or capable of being acquired) at any
time,  whether  before or after the execution and delivery of this  Agreement or
the Closing  Date,  with respect to the accuracy or  inaccuracy of or compliance
with, any such representation,  warranty,  covenant or obligation. The waiver of
any condition based on the accuracy of any representation or warranty, or on the
performance of or compliance  with any covenant or  obligation,  will not affect
the right to indemnification,  payment of damages, or other remedy based on such
representation, warranty, covenant or obligation.

         5.2      SURVIVAL.

                  (a) All  representations  and warranties  contained in or made
pursuant  to  this  Agreement  or in any  agreement,  certificate,  document  or
statement  delivered  pursuant  hereto shall survive the Closing for a period of
one (1) year,  unless  otherwise  specified in such  agreement,  certificate  or
document.

                  (b) The  termination  of the  representations  and  warranties
provided herein shall not affect the rights of a party with respect to any claim
made by such  party  in a  writing  received  by the  other  party  prior to the
expiration of the applicable survival period provided herein.

         5.3      METHODS OF ASSERTING CLAIMS FOR INDEMNIFICATION.

         All claims for  indemnification  under this Agreement shall be asserted
as follows:

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                  (a) THIRD PARTY CLAIMS.  In the event that any Claim for which
a party (the  "Indemnitee")  would be  entitled  to  indemnification  under this
Agreement is asserted against or sought to be collected from the Indemnitee by a
third  party,  the  Indemnitee  shall  promptly  notify  the  other  party  (the
"Indemnitor")  of such Claim,  specifying  the nature  thereof,  the  applicable
provision in this  Agreement or other  instrument  under which the Claim arises,
and the  amount or the  estimated  amount  thereof  (the  "Claim  Notice").  The
Indemnitor  shall have thirty (30) days (or, if shorter,  a period to a date not
less than ten (10) days prior to when a responsive pleading or other document is
required  to be filed but in no event less than ten (10) days from  delivery  or
mailing of the Claim Notice) (the "Notice  Period") to notify the Indemnitee (a)
whether  or not it  disputes  the Claim and (b) if  liability  hereunder  is not
disputed,  whether or not it desires to defend the Indemnitee. If the Indemnitor
elects to defend by appropriate proceedings,  such proceedings shall be promptly
settled or  prosecuted  to a final  conclusion  in such a manner as to avoid any
risk of damage to the Indemnitee; and all costs and expenses of such proceedings
and the amount of any judgment shall be paid by the Indemnitor.

         The Indemnitee shall have the right to participate in, but not control,
any such defense or settlement,  at its sole cost and expense. If the Indemnitor
has disputed the Claim, as provided  above,  and has not provided the Indemnitee
with timely  notice of its  election to defend the  Indemnitee  pursuant to this
Section  5.3(a),  the Indemnitee  shall have the right to control the defense or
settlement of such Claim, in its sole discretion, and shall be reimbursed by the
Indemnitor  for its  reasonable  costs and  expenses  of such  defense.  Neither
Indemnitee  nor Indemnitor  shall be otherwise  liable for any settlement of any
Claim without the prior written consent of the other party.

                  (b) NON-THIRD  PARTY CLAIMS.  In the event that the Indemnitee
has a Claim for  indemnification  hereunder which does not involve a Claim being
asserted  against it or sought to be collected by a third party,  the Indemnitee
shall promptly send a Claim Notice with respect to such Claim to the Indemnitor.
If the Indemnitor does not satisfy the Claim within thirty (30) days of the date
of the Claim Notice, then such Claim may be prosecuted in any court of competent
jurisdiction in the Commonwealth of Pennsylvania.

ARTICLE VI        REGISTRATION RIGHTS

         6.1      For the purpose of this Article 6,  the  following definitions
shall apply:

         (a)     "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the SEC thereunder, all as the same
shall be in effect at the time.

         (b)      "Person" shall mean an individual, partnership (general or
limited), corporation, limited liability company, joint venture, business trust,
cooperative,  association or other form of business organization, whether or not
regarded  as a legal  entity  under  applicable  law,  a trust  (inter  vivos or
testamentary),  an  estate  of a  deceased,  insane  or  incompetent  person,  a
quasi-governmental  entity,  a government  or any agency,  authority,  political
subdivision or other instrumentality thereof, or any other entity.

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         (c)      "Register,"  "registered," and "registration" shall refer to a
registration  effected  by  preparing  and filing a  registration  statement  in
compliance with the Act, and the declaration or order of  effectiveness  of such
registration statement or document.

         (d)      "Registration Statement" shall mean any registration statement
of the Company filed with the SEC pursuant to the provisions of Paragraph 6.2 of
this  Agreement,  which  covers  the  resale  of  the  Restricted  Stock  on  an
appropriate form then permitted by the SEC to be used for such  registration and
the sales  contemplated  to be made  thereby  under the Act, or any similar rule
that may be adopted  by the SEC,  and all  amendments  and  supplements  to such
registration  statement,  including  any pre-  and  post-  effective  amendments
thereto, in each case including the prospectus  contained therein,  all exhibits
thereto and all materials incorporated by reference therein.

         (e)      "Restricted Stock" shall mean (i) the  Shares  and  shares  of
Common Stock issuable upon  conversion of the Warrants;  and (ii) any additional
shares of Common Stock of the Company  issued or issuable  after the date hereof
in respect of any of the  foregoing  securities,  by way of a stock  dividend or
stock split; provided that as to any particular shares of Restricted Stock, such
securities  shall cease to constitute  Restricted  Stock (x) when a Registration
Statement  with  respect  to the  sale  of such  securities  shall  have  become
effective  under  the Act and  such  securities  shall  have  been  disposed  of
thereunder, or (y) when such securities are permitted to be distributed pursuant
to Rule 144(k) (or any  successor  provision  to such Rule) under the Act or are
otherwise freely  transferable to the public without further  registration under
the Act.

         (f)      "Selling  Stockholders"  shall mean the Class B Member and its
respective successors and assigns.

         6.2. REGISTRATION OF THE SHARES.

                           (a) The Purchaser shall use its reasonable best
efforts  to  prepare  and  file  with the  SEC,  within  120 days of the date of
termination of the Offering,  a Registration  Statement under the Securities Act
to permit the public sale of the Restricted Stock purchased hereby, and to cause
such  Registration  Statement  to be declared  effective  as soon as  reasonably
practicable thereafter.  Each Selling Stockholder shall furnish such information
as may be  reasonably  requested  by the  Purchaser  in  order to  include  such
Restricted  Stock  in such  Registration  Statement.  If a  Selling  Stockholder
decides not to include all of its Restricted Stock in any registration statement
thereafter filed by the Purchaser,  such Selling  Stockholder shall nevertheless
continue to have the right to include  any  Restricted  Stock in any  subsequent
registration  statement  or  registration  statements  as  may be  filed  by the
Purchaser  with respect to offerings of its  securities,  all upon the terms and
conditions set forth herein.

                           (b) In the event that any registration pursuant to
Paragraph 6.2(a) shall be, in whole or in part, an underwritten  public offering
of Common Stock on behalf of the Purchaser, all Selling Stockholder proposing to
distribute their Restricted Stock through such underwriting  shall enter into an
underwriting  agreement in customary form with the  underwriter or  underwriters
selected for such  underwriting  by the Purchaser.  If the managing  underwriter
thereof  advises  the  Purchaser  in writing  that in its  opinion the number of
securities  requested  to be  included in such  registration  exceeds the number
which can be sold in an orderly  manner in such  offering  within a price  range
acceptable to the Purchaser,  the Purchaser  shall include in such  registration
(i) first, the securities the Purchaser  proposes to sell, and (ii) second,  the
Restricted Stock and any other registrable  securities eligible and requested to

                                       10
<PAGE>

be included in such  registration  to the extent that the number of shares to be
registered  under this  clause  (ii) will not,  in the  opinion of the  managing
underwriter,  adversely affect the offering of the securities pursuant to clause
(i). In such a case,  shares shall be  registered  pro rata among the holders of
such Restricted  Stock and registrable  securities on the basis of the number of
shares  eligible  for  registration  that  are  owned by all  such  holders  and
requested to be included in such registration.

                           (c) Notwithstanding anything to the contrary
contained  herein,  the Purchaser's  obligation in Paragraphs  6.2(a) and 6.2(b)
above  shall  extend  only  to  the  inclusion  of  the  Restricted  Stock  in a
Registration  Statement.  The  Purchaser  shall have no obligation to assure the
terms and conditions of distribution, to obtain a commitment from an underwriter
relative  to the  sale  of the  Restricted  Stock  or to  otherwise  assume  any
responsibility  for the  manner,  price  or  terms  of the  distribution  of the
Restricted Stock.

                           (d) The Purchaser shall have the right to terminate
or withdraw any registration initiated by it under this Section 6.2 prior to the
effectiveness of such registration  without thereby  incurring  liability to the
holders of the Restricted Stock, regardless of whether any holder has elected to
include  securities  in such  registration.  The  Registration  Expenses of such
withdrawn  registration  shall be  borne by the  Purchaser  in  accordance  with
Section 6.4 hereof.

                  6.3.  REGISTRATION  PROCEDURES.  Whenever it is  obligated  to
register any Restricted Stock pursuant to this Agreement, the Purchaser shall:

                           (a) prepare and file with the SEC a Registration
Statement  with  respect  to the  Restricted  Stock in the  manner  set forth in
Paragraph  6.2  hereof  and  use its  reasonable  best  efforts  to  cause  such
Registration Statement to become effective as promptly as possible and to remain
effective  until the earlier of (i) the period in which all shares of Restricted
Stock  covered  thereby  shall have been sold, or (ii) eighteen (18) months from
the effective date of the  Registration  Statement filed by the Company with the
SEC pursuant to this Agreement;

                           (b) prepare and file with the SEC such amendments
(including  post-effective  amendments)  and  supplements  to such  Registration
Statement and the prospectus used in connection therewith as may be necessary to
keep such Registration Statement effective for the period specified in Paragraph
6.3(a)  above and to comply with the  provisions  of the Act with respect to the
disposition of all Restricted  Stock covered by such  Registration  Statement in
accordance   with  the  intended   method  of  disposition  set  forth  in  such
Registration Statement for such period;

                           (c) furnish to the Selling Stockholders such number
of copies of the  Registration  Statement and the  prospectus  included  therein
(including each preliminary prospectus) as such person may reasonably request in
order to facilitate the public sale or other disposition of the Restricted Stock
covered by such Registration Statement;

                                       11
<PAGE>

                           (d) use its reasonable best efforts to register or
qualify the Restricted Stock
covered by such  Registration  Statement under the state securities laws of such
jurisdictions as any Selling  Stockholder  shall reasonably  request;  PROVIDED,
HOWEVER,  that the  Purchaser  shall not for any such  purpose  be  required  to
qualify  generally  to  transact  business  as  a  foreign  corporation  in  any
jurisdiction  where it is not so qualified  or to consent to general  service of
process in any such jurisdiction;

                           (e) in the event of any underwritten public offering,
enter into and perform its
obligations under an underwriting  agreement,  in usual and customary form, with
the  managing   underwriter(s)  of  such  offering.   Each  Selling  Stockholder
participating  in such  underwriting  shall  also  enter  into and  perform  its
obligations under such an agreement, as described in Section 6.2(b);

                           (f) immediately notify each Selling Stockholder at
any time when a prospectus  relating  thereto is required to be delivered  under
the Act,  of the  happening  of any event as a result  of which  the  prospectus
contained in such Registration  Statement, as then in effect, includes an untrue
statement  of a material  fact or omits to state a  material  fact  required  or
necessary to be stated therein in order to make the statements contained therein
not  misleading in light of the  circumstances  under which they were made.  The
Purchaser will use reasonable  efforts to amend or supplement such prospectus in
order to cause such prospectus not to include any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements  therein not misleading in the light of the circumstances
under which they were made;

                          (g) prepare and file with the Commission such
amendments  and  supplements to such  registration  statement and the prospectus
used in  connection  with such  registration  statements  as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by such registration statement;

                          (h) make available for inspection by any Selling
Stockholder and any attorney,  accountant or other agent retained by any Selling
Stockholder,  all financial and other records, pertinent corporate documents and
properties of the Purchaser,  and cause the Purchaser's officers,  directors and
employees  to  supply  all  information  reasonably  requested  by  any  Selling
Stockholder,  attorney, accountant or agent in connection with such Registration
Statement;  provided,  however,  that  such  Selling  Stockholder,  underwriter,
attorney  or  accountant  shall  agree  to  hold in  confidence  and  trust  all
information so provided;

                           (i) use its reasonable best efforts to list the
Restricted  Stock  covered by such  Registration  Statement on each  exchange or
automated  quotation system on which similar  securities issued by the Purchaser
are then  listed  (with the  listing  application  being made at the time of the
filing of such  Registration  Statement or as soon  thereafter  as is reasonably
practicable);

                           (j) notify each Selling Stockholder of any threat by
the SEC or state securities commission to undertake a stop order with respect to
sales under the Registration Statement; and

                                       12
<PAGE>

                           (k)  cooperate  in   the  timely   removal   of   any
restrictive  legends from the shares of Restricted  Stock in connection with the
resale of such shares covered by an effective Registration Statement.

                  6.4.     DELAY OF REGISTRATION.   No Selling Stockholder shall
have any right to obtain or seek an injunction restraining or otherwise delaying
any such  registration  as the result of any  controversy  that might arise with
respect to the interpretation or implementation of this Section 6.

                  6.5      EXPENSES.

                           (a) For the purposes of this Paragraph 6.5, the term
"Registration  Expenses"  shall mean: all expenses  incurred by the Purchaser in
complying with Paragraph 6.2 of this Agreement,  including,  without limitation,
all registration and filing fees,  printing expenses,  fees and disbursements of
counsel and independent public accountants for the Company,  reasonable fees and
disbursements  of a single special  counsel for the Selling  Stockholders,  fees
under state  securities  laws,  fees of the National  Association  of Securities
Dealers, Inc. ("NASD"),  fees and expenses of listing shares of Restricted Stock
on any securities  exchange or automated quotation system on which the Company's
shares are listed and fees of transfer agents and registrars.  The term "Selling
Expenses"  shall  mean:  all  underwriting  discounts  and  selling  commissions
applicable   to  the  sale  of   Restricted   Stock  and  all   accountable   or
non-accountable expenses paid to any underwriter in respect of such sale.

                           (b) Except   as  otherwise   provided   herein,   the
Purchaser will pay all Registration Expenses in connection with the Registration
Statements  filed  pursuant  to  Paragraph  6.2 of this  Agreement.  All Selling
Expenses  in  connection  with any  Registration  Statements  filed  pursuant to
Paragraph 6.1 of this Agreement shall be borne by the Selling  Stockholders  pro
rata on the basis of the number of shares registered by each Selling Stockholder
whose shares of Restricted Stock are covered by such Registration  Statement, or
by such persons other than the Purchaser (except to the extent the Purchaser may
be a seller) as they may agree.

                  6.5. OBLIGATIONS OF THE SELLING STOCKHOLDER.

                           (a) In connection with each registration hereunder,
each  Selling  Stockholder  will  furnish  to  the  Purchaser  in  writing  such
information  with respect to it and the  securities  held by it and the proposed
distribution  by it, as shall be reasonably  requested by the Purchaser in order
to assure  compliance  with  applicable  federal and state  securities laws as a
condition precedent to including the Selling  Stockholder's  Restricted Stock in
the Registration Statement.  Each Selling Stockholder shall also promptly notify
the Company of any  changes in such  information  included  in the  Registration
Statement  or  prospectus  as a result of which there is an untrue  statement of
material fact or an omission to state any material fact required or necessary to
be  stated  therein  in order  to make  the  statements  contained  therein  not
misleading in light of the circumstances under which they were made.

                           (b) In connection with the filing of the Registration
Statement,  each Selling  Stockholder  shall furnish to the Purchaser in writing
such information and affidavits as

                                       13
<PAGE>

the Purchaser  reasonably  requests for use in connection with such Registration
Statement or prospectus.

                           (c) In connection with each registration pursuant to
this Agreement, each Selling Stockholder agrees that it will not effect sales of
any Restricted  Stock until notified by the Company of the  effectiveness of the
Registration Statement,  and thereafter will suspend such sales after receipt of
telegraphic  or written notice from the Purchaser to suspend sales to permit the
Purchaser to correct or update a Registration  Statement or  prospectus.  At the
end of any period during which the Purchaser is obligated to keep a Registration
Statement  current,   each  Selling   Stockholder  shall  discontinue  sales  of
Restricted Stock pursuant to such Registration  Statement upon receipt of notice
from the Company of its  intention to remove from  registration  the  Restricted
Stock covered by such  Registration  Statement  which remains  unsold,  and each
Selling  Stockholder  shall  notify  the  Purchaser  of  the  number  of  shares
registered which remain unsold  immediately upon receipt of such notice from the
Purchaser.

                  6.6. INFORMATION BLACKOUT AND HOLDBACKS.

                           (a) At any time when a Registration Statement
effected  pursuant to Paragraph 6.2 is effective,  upon written  notice from the
Purchaser to the Selling  Stockholders that the Purchaser has determined in good
faith that the sale of Restricted Stock pursuant to the  Registration  Statement
would  require  disclosure  of  non-public  material  information,  the  Selling
Stockholders   shall  suspend  sales  of  Restricted   Stock  pursuant  to  such
Registration  Statement  until such time as the  Purchaser  notifies the Selling
Stockholders that such material  information has been disclosed to the public or
has ceased to be material, or that sales pursuant to such Registration Statement
may otherwise be resumed.

                           (b) Notwithstanding any other provision of this
Agreement,  the  Selling  Stockholders  shall  not  effect  any  public  sale or
distribution  (including sales pursuant to Rule 144), if and when available,  of
equity  securities  of  the  Company,  or any  securities  convertible  into  or
exchangeable  or exercisable  for such  securities,  during the thirty (30) days
prior to the  commencement  of any  primary  offering  to be  undertaken  by the
Purchaser of shares of its unissued Common Stock ("Primary Offering"), which may
also include other  securities,  and ending one hundred  twenty (120) days after
completion of any such Primary Offering,  unless the Purchaser, in the case of a
non-underwritten  Primary Offering, or the managing underwriter,  in the case of
an underwritten Primary Offering, otherwise agree.

                  6.7. INDEMNIFICATION.

                           (a) The Purchaser agrees to indemnify, to the extent
permitted  by  law,  each  Selling  Stockholder,   such  Selling   Stockholder's
respective  partners,  officers,  directors,  underwriters  and each  Person who
controls  any Selling  Stockholder  (within the meaning of the Act)  against all
losses,  claims,  damages,  liabilities  and  expenses  caused by (i) any untrue
statement of material fact contained in the Registration  Statement,  prospectus
or preliminary  prospectus or any amendment thereof or supplement thereto,  (ii)
any omission of a material  fact  required to be stated  therein or necessary to
make the statements  therein not  misleading,  or (iii) any violation or alleged
violation by the  Purchaser of the Act, the Exchange  Act, any state

                                       14
<PAGE>

securities law or any rule or regulation promulgated under the Act, the Exchange
Act or any state  securities law in connection with the offering covered by such
registration  statement  ("Violations");  PROVIDED,  HOWEVER, that the indemnity
agreement  contained in this  Section  6.7(a) shall not apply to amounts paid in
settlement  of any  such  loss,  claim,  damage,  liability  or  action  if such
settlement is effected without the consent of the Purchaser, which consent shall
not be unreasonably withheld, nor shall the Purchaser be liable in for any loss,
claim,  damage,  liability  or action to the extent  that it arises out of or is
based upon a Violation  which  occurs in reliance  upon and in  conformity  with
written  information  furnished  expressly  for  use  in  connection  with  such
registration  by  such  Selling   Stockholder,   partner,   officer,   director,
underwriter or controlling person of such Selling Stockholder.

                           (b) To the extent permitted by law, each Selling
Stockholder  shall  indemnify  and  hold  harmless  the  Purchaser,  each of its
directors, its officers and each person, if any, who controls the Company within
the  meaning  of the Act,  any  underwriter  and any other  Selling  Stockholder
selling  securities  under  such  registration  statement  or any of such  other
Selling Stockholder's partners, directors or officers or any person who controls
such Selling  Stockholder,  against any losses,  claims,  damages or liabilities
(joint  or  several)  to  which  the  Company  or any  such  director,  officer,
controlling person,  underwriter or other such Selling Stockholder,  or partner,
director,  officer or controlling person of such other Selling Stockholder,  may
become  subject  under the Act, the Exchange Act or other  federal or state law,
insofar as such losses,  claims,  damages or liabilities  (or actions in respect
thereto)  arise  out of or are  based  upon any  Violation,  in each case to the
extent (and only to the extent) that such  Violation (i) occurs in reliance upon
and in conformity with written information furnished by such Selling Stockholder
under  an  instrument  duly  executed  by such  Selling  Stockholder  for use in
connection with such registration; or (ii) occurs as a result of any disposition
of the  Restricted  Stock in a manner  that fails to comply  with the  permitted
methods of distribution identified within the Registration Statement.

                           (c) Any Person entitled to indemnification hereunder
shall (i) give prompt written notice to the indemnifying party of any claim with
respect to which it seeks  indemnification  (provided  that the  failure to give
prompt notice shall not impair any Person's right to  indemnification  hereunder
to the extent such failure has not prejudiced the indemnifying  party), and (ii)
unless in such indemnified  party's  reasonable  judgment a conflict of interest
between such indemnified and indemnifying parties may exist with respect to such
claim,  permit such indemnifying  party to assume the defense of such claim with
counsel  reasonably  satisfactory to the  indemnified  party. If such defense is
assumed,  the  indemnifying  party shall not be subject to any liability for any
settlement made by the  indemnified  party without its consent (but such consent
shall not be unreasonably  withheld).  An indemnifying party who is not entitled
to, or elects not to,  assume the defense of a claim shall not be  obligated  to
pay the fees and  expenses of more than one counsel for all parties  indemnified
by such indemnifying party with respect to such claim,  unless in the reasonable
judgment of any indemnified  party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to such
claim.

                           (d) If the indemnification provided for in this
Section 6.7 is held by a court of competent jurisdiction to be unavailable to an
indemnified  party with respect to any losses,  claims,  damages or  liabilities
referred  to  herein,  the  indemnifying  party,  in lieu of  indemnifying  such
indemnified  party  thereunder,  shall to the extent permitted by applicable law

                                       15
<PAGE>

contribute to the amount paid or payable by such  indemnified  party as a result
of such loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative fault of the indemnifying  party on the one hand and of the
indemnified party on the other in connection with the violation(s)  described in
Section 6.7(a) that resulted in such loss, claim,  damage or liability,  as well
as any  other  relevant  equitable  considerations.  The  relative  fault of the
indemnifying  party and of the indemnified  party shall be determined by a court
of law by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission to state a material fact relates to
information  supplied by the indemnifying  party or by the indemnified party and
the parties' relative intent,  knowledge,  access to information and opportunity
to correct or prevent such  statement or  omission;  PROVIDED,  that in no event
shall  any  contribution  by a  Selling  Stockholder  hereunder  exceed  the net
proceeds from the offering received by such Selling Stockholder.

                           (e) The   indemnification   provided  for  under this
Agreement shall remain in full force and effect  regardless of any investigation
made by or on  behalf  of the  indemnified  party or any  officer,  director  or
controlling  Person of such indemnified  party and shall survive the transfer of
securities.  The Purchaser also agrees to make such provisions as are reasonably
requested by any indemnified  party for  contribution to such party in the event
the Purchaser's indemnification is unavailable for any reason.

ARTICLE VII       ADDITIONAL AGREEMENTS OF THE PARTIES

         7.1      PROHIBITION ON TRADING IN PURCHASER COMMON STOCK.

         The Class B Member  acknowledges that the United States securities laws
prohibit any person who has received material non-public  information concerning
the matters which are the subject matter of this  Agreement  from  purchasing or
selling the securities of the Purchaser,  or from communicating such information
to any person under  circumstances  in which it is reasonably  foreseeable  that
such person is likely to purchase or sell securities of Purchaser.  Accordingly,
the Class B Member agrees that they will not purchase or sell any  securities of
Purchaser,   or  communicate   such   information  to  any  other  person  under
circumstances  in which it is reasonably  foreseeable that such person is likely
to purchase or sell  securities  of  Purchaser,  until no earlier  than 72 hours
following the public disclosure of the transactions contemplated hereby.

         7.2      FURTHER ACTS AND ASSURANCES.

          The  parties  agree  that,  at any time and from time to time,  on and
after the Closing,  upon the reasonable request of the other party, they will do
or cause to be done all such further  acts and things and  execute,  acknowledge
and deliver,  or cause to be executed,  acknowledged  and  delivered any and all
papers, documents, instruments,  agreements,  assignments, transfers, assurances
and conveyances as may be necessary or desirable to carry out and give effect to
the provisions and intent of this Agreement.

                                       16
<PAGE>

         7.3      PUBLIC ANNOUNCEMENTS.

         Neither  the Class B Member nor the  Purchaser  shall  disclose  to the
public or to any third party the existence of this Agreement or the transactions
contemplated hereby or any other material non-public  information  concerning or
relating to the other party  hereto,  other than with the express  prior written
consent of the other  party  hereto,  except as may be  required by law or court
order,  except  to  enforce  the  rights of such  disclosing  party  under  this
Agreement;  and except that  Purchaser  shall have the right to make such public
disclosures of this  Agreement and the  transactions  contemplated  hereby as it
determines are  appropriate  under federal  securities  laws; in which event the
contents of any  proposed  disclosure  shall be  discussed  with the other party
before release; provided, however, that notwithstanding anything to the contrary
contained in this Agreement, any party hereto may disclose this Agreement to any
of its directors,  officers,  employees,  shareholders,  affiliates,  agents and
representative  who  need to know  such  information  for the  sole  purpose  of
evaluating,  or performing its obligations or exercising its rights under,  this
Agreement,  and to any party whose consent is required in  connection  with this
Agreement.

ARTICLE VIII MISCELLANEOUS

         8.1      DEFINITIONS

         For purposes of this  Agreement,  the following terms have the meanings
specified:

         "ENCUMBRANCE" means and includes:

                  (i) with  respect to any  personal  property,  any  intangible
property  or any  property  other  than real  property,  any  security  or other
property  interest or right,  claim,  lien,  pledge,  option,  charge,  security
interest,  contingent  or  conditional  sale,  or other title claim or retention
agreement  or lease or use  agreement in the nature  thereof,  interest or other
right or claim of third  parties,  whether  voluntarily  incurred  or arising by
operation of law, and  including  any agreement to grant or submit to any of the
foregoing in the future; and

                  (ii) with respect to any real property  (whether and including
owned  real  estate  or leased  real  estate),  any  mortgage,  lien,  easement,
interest, right-of-way, condemnation or eminent domain proceeding, encroachment,
any  building,  use or other form of  restriction,  encumbrance  or other  claim
(including  adverse  or  prescriptive)  or  right of  third  parties  (including
Governmental  Authorities),   any  lease  or  sublease,  boundary  dispute,  and
agreements with respect to any real property including: purchase, sale, right of
first refusal, option, construction,  building or property service, maintenance,
property management, conditional or contingent sale, use or occupancy, franchise
or concession,  whether voluntarily incurred or arising by operation of law, and
including  any  agreement  to grant or  submit  to any of the  foregoing  in the
future.

         "GOVERNMENTAL AUTHORITY" means any:

                  (i) nation,  state, county,  city, town, village,  district or
          other jurisdiction of any nature;

                  (ii)  federal,  state,  local,  municipal,  foreign  or  other
          government;

                                       17
<PAGE>

                  (iii)  governmental  or  quasi-governmental  authority  of any
          nature (including any governmental agency, branch, board,  commission,
          department,  instrumentality, office or other entity, and any court or
          other tribunal);

                  (iv) multi-national organization or body; and/or

                  (v) body  exercising,  or entitled or  purporting to exercise,
          any  administrative,   executive,   judicial,   legislative,   police,
          regulatory or taxing authority or power of any nature.

          "INDEBTEDNESS"  means (i) all outstanding bank and other loans, notes,
lines of  credit,  capital  leases  or debt  instruments,  and  (ii)  all  other
indebteness,  excluding  trade  payables,  operating  leases  and other  current
liabilities.

         "LIABILITY"  or  "LIABILITIES"  means  any and all  debts,  liabilities
and/or obligations of any type, nature or description (whether known or unknown,
asserted or unasserted, secured or unsecured, absolute or contingent, accrued or
unaccrued, liquidated or unliquidated and whether due or to become due).

         "PERSON" means any  individual,  corporation  (including any non-profit
corporation),   general,  limited  or  limited  liability  partnership,  limited
liability company, joint venture, estate, trust, association,  organization,  or
other entity or Governmental Authority.

         "RIGHTS"  means  any  and  all  outstanding  subscriptions,   warrants,
options,  voting agreements,  voting trusts,  proxies,  or other arrangements or
commitments  obligating or which may obligate a Person to dispose of or vote any
securities, including, without limitation, the Interests.

         "SEC" means the Securities and Exchange Commission.

         "SECURITIES ACT" means the Securities Act of 1933, as amended.

         8.2      ENTIRE AGREEMENT; ASSIGNMENT.

         This   Agreement,   including  all  Exhibits  and   Schedules   hereto,
constitutes  the entire  Agreement among the parties with respect to its subject
matter and supersedes all prior agreements and understandings,  both written and
oral,  among the  parties or any of them with  respect to such  subject  matter.
Neither  party may assign this  Agreement or any of its or his rights  hereunder
without the prior written consent of the other parties.

         8.3      BINDING EFFECT; BENEFIT.

         This  Agreement  shall inure to the benefit of and be binding  upon the
parties and their respective  successors and assigns.  Nothing in this Agreement
is intended to confer on any person other than the parties to this  Agreement or
their  respective  successors and assigns any rights,  remedies,  obligations or
liabilities under or by reason of this Agreement.

                                       18
<PAGE>

         8.4      HEADINGS.

         The descriptive headings of the sections of this Agreement are inserted
for  convenience  only, do not constitute a part of this Agreement and shall not
affect in any way the meaning or interpretation of this Agreement.

         8.5      COUNTERPARTS.

         This  Agreement  may  be  executed  in  two or  more  counterparts  and
delivered via  facsimile,  each of which shall be deemed to be an original,  and
all of which together shall be deemed to be one and the same instrument.

         8.6      GOVERNING LAW.

         This  Agreement  shall be governed by and construed in accordance  with
the laws of the  Commonwealth of  Pennsylvania,  without regard to the laws that
might otherwise govern under principles of conflicts of laws applicable thereto.

         8.7      SEVERABILITY.

         If any term,  provision,  covenant or  restriction of this Agreement is
held by a court of  competent  jurisdiction  or other  authority  to be invalid,
void,  unenforceable  or against its  regulatory  policy,  the remainder of this
Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated.

         8.8      AMENDMENT AND MODIFICATION.

         This  Agreement may be amended,  by written  agreement of Purchaser and
the Class B Member. This Agreement may not be amended except by an instrument in
writing signed on behalf of Purchaser and the Class B Member.

         8.9      GENERAL RELEASE.

         By virtue of the execution and delivery of this Agreement,  the Class B
Member does hereby fully and irrevocably  remise,  release and forever discharge
the Company and its members,  managers,  agents,  successors and assigns, of and
from any and all  manner  of  claims,  actions,  causes of  action,  grievances,
liabilities,  obligations,  promises,  damages,  agreements,  rights,  debts and
expenses (including claims for attorneys' fees and costs), of every kind, either
in law or in equity, whether contingent,  mature, known or unknown, or suspected
or  unsuspected,  including,  without  limitation,  any claims arising under any
federal,  state, local or municipal law, common law or statute,  whether arising
in  contract  or in  tort  and  any  claims  arising  under  any  other  laws or
regulations of any nature whatsoever, which the Class B Member ever had, now has
or may have, for or by reason of any cause,  matter, or thing  whatsoever,  from
the beginning of the world to the date hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       19

<PAGE>

         IN WITNESS WHEREOF, each of the parties has executed or caused this
Agreement to be executed as of the date first above written.

                           CONTINENTAL SOUTHERN RESOURCES,  INC.

                           By: /s/ STEPHEN P. HARRINGTON
                              ---------------------------------------
                               Authorized Executive Officer

                           BWP GAS, LLC

                           By: Oklahoma Hills Gas, LLC, its Managing Member

                           By: HBA Gas, Inc, its Managing Member

                           By: /S/ ERNEST A. BARTLETT
                              ---------------------------------------
                               Authorized Executive Officer

                           CLASS B MEMBER:

                           HBA GAS, INC.

                           By: /S/ ERNEST A. BARTLETT
                              ---------------------------------------
                               Authorized Executive Officer

                                       20

<PAGE>

                                OMITTED EXHIBITS

         The following  exhibits to the Membership  Purchase Agreement have been
omitted:

         EXHIBIT                EXHIBIT DESCRIPTION
         -------                -------------------------------------
             A                  Form of Warrant

             B                  Operating Agreement of BWP, LLC

             C                  Exploration      Agreement,
                                dated May 19, 2003,  by and
                                among  BWP,  LLC,  The  GHK
                                Company,   LLC,   and   GHK
                                Potato    Hills     Limited
                                Partnership

         The Registrant agrees to furnish supplementally a copy of the foregoing
omitted exhibits to the Securities and Exchange Commission upon request.EXHIBIT 10.22

                                             FIRST AMENDMENT TO LOAN AGREEMENT

         THIS FIRST AMENDMENT TO THE LOAN AGREEMENT  originally dated April 2002
is made and entered  into this 29 day of July 2003,  by and between  Continental
Southern Resources,  Inc. f/k/a Expressions Graphics,  Inc, a Nevada corporation
(the  "Borrower")  and Trident  Growth Fund, LP f/k/a Gemini Growth Fund,  LP, a
Delaware limited partnership (the "Lender").

                              W I T N E S S E T H :

     WHEREAS, the Borrower has borrowed from Lender $1,500,000;

     WHEREAS,  the  Borrower  has  requested  that  Lender  lend and  additional
$600,000 (the "Loan");

     WHEREAS,  Lender has agreed to make such a loan  available to Borrower upon
the terms and conditions hereinafter set forth; and

     WHEREAS,  this  Amendment  is made  pursuant to  Paragraph  9.4 of the Loan
Agreement  dated the 5th day of April 2002,  by and between the Borrower and the
Lender  (the  "Agreement"  or "Loan  Agreement")  and  Borrower  represents  and
warrants that all of the previous  executed Loan Documents are in full force and
effect except as specifically modified herein;

NOW, THEREFORE, it is agreed to amend and change the following provisions:

1.11 "Committed  Amount" means the principal  amount of $2,100,000  which Lender
has  agreed to lend to  Borrower  as  evidenced  by the two or more  Convertible
Notes.

1.36 "Termination Date" means the earlier of: (a) July 31, 2004; (b) the date of
the occurrence and continuance of an Event of Default (as hereinafter  defined);
(c) the date of repayment of the Loan Amount plus accrued  interest;  or (d) the
date of the Change of Control of the Borrower.

5.14  FINANCIAL  COVENANTS.  As of December  14, 2003 and until the  Termination
Date, the Borrower must maintain the following ratios:

         (a) CASH INTEREST  COVERAGE.  Until the Termination  Date, the Borrower
shall  maintain a  Consolidated  EBITDA  ratio,  based on any of the  Borrower's
quarterly  financial  statements  (as  determined on the last day of each fiscal
quarter  for  the  immediately  preceding  quarter),  of  2.0  or  greater.  The
Consolidated  EBITDA ratio is defined as Consolidated EBITDA divided by Interest
Expense (Consolidated EBITDA / Interest Expense).

<PAGE>

         (b) CASH FLOW COVERAGE RATIO. The ratio of (a) the Borrower's Cash Flow
to (b) the sum of (i) the Borrower's consolidated Interest Expense plus (ii) the
Borrower's scheduled payments of principal (including the principal component of
Capital  Leases)  to be  paid  during  the  12  months  following  any  date  of
determination  shall at all times exceed 1.5 to 1.0.  Compliance  with the ratio
will be tested  as of the last day of each  month,  with Cash Flow and  Interest
Expense being calculated for the twelve months then ended.

         (c) CURRENT  RATIO.  The Borrower will at all times  maintain a Current
Ratio of not less than 1.5 to 1.0.  The Current  Ratio shall be  calculated  and
tested quarterly as of the last day of each fiscal quarter of the Borrower.

         (d) ACTUAL  VERSUS  BUDGET.  The  Borrower  shall on a quarterly  basis
achieve 75 percent of its budgeted  revenue and income.  Budget numbers shall be
those  delivered to Lender  contemporaneously  herewith and then on September 30
for any following fiscal year.

7.1  Defaults.  Each of the following  shall  constitute an Event of Default (an
"Event of Default") hereunder:  (a) the failure to pay when due any principal or
interest  hereunder or under the  Convertible  Note and the  continuance of such
failure  for a period  of ten  (10)  business  days  thereafter;  (b) any  other
violation  by the Borrower of any recital,  funding  condition,  representation,
warranty,  covenant or agreement  contained  in this  Agreement or in any of the
Loan  Documents;  or any  violation  by the  Borrower  of any  recital,  funding
condition,  representation,  warranty,  covenant or  agreement  contained in any
other  document or  agreement  to which the Borrower and the Lender are parties;
(c) any change in the majority of the Board of Directors or of the management or
in the control of the Borrower which is not  contemplated in Section 5.12 herein
or  previously  approved  by the  advance  written  consent of the  Lender;  (d)
execution of any  agreement,  letter,  memorandum  of  understanding  or similar
document  relating to the transfer,  disposition or sale of all or substantially
all of the assets of the Borrower to anyone  without the approval of the Lender;
(e)  an  assignment  for  the  benefit  of  creditors  by the  Borrower;  (f) an
application  for the appointment of a receiver or liquidator for the Borrower or
any of its material  assets;  (g) an issuance of an attachment or the entry of a
judgment  against  the  Borrower  in excess  of  $50,000;  (h) a default  by the
Borrower with respect to any other  indebtedness in excess of $50,000 due to the
Lender;  (i) the  making or  sending  of a notice of  intended  bulk sale by the
Borrower;  (l)  the  issuance  of  a  determination  by  a  court  of  competent
jurisdiction that one or more Loan Documents or one or more material  provisions
of any Loan Document is unenforceable,  or the issuance of an injunction against
the  enforcement  of any such Loan Document or material  provision;  (m) Default
shall occur in the payment of any material  indebtedness  of the Borrower or its
Subsidiaries,  if any,  or default  shall  occur in  respect  of any note,  loan
agreement or credit agreement relating to any such indebtedness and such default
shall continue for more than the period of grace, if any,  specified therein and
any  such   indebtedness   shall  become  due  before  its  stated  maturity  by
acceleration of the maturity  thereof or shall

<PAGE>

become due by its terms and shall not be promptly paid or extended. (n) upon the
reasonable  determination  by the Lender that there has been a Material  Adverse
Effect;  and (o) the  occurrence of an Activity  Event of Default (as defined in
Section 8.6  herein).  Upon the  occurrence  of any of the  foregoing  Events of
Default,  the Convertible  Note and the Loan will be considered to be in default
and the entire unpaid principal sum hereof, together with accrued interest, will
at the option of the holder thereof become  immediately due and payable in full.
Upon  the  occurrence  of an  Event  of  Default,  the  Borrower  agrees  to pay
reasonable  collection costs and expenses,  including reasonable attorneys' fees
and  interest  (cash only,  not stock) at the lesser of: (i) 18% per annum (cash
only, not stock) or (ii) the maximum rate allowed under applicable law, from the
date of the default at the maximum rate  permitted by law computed on the unpaid
principal balance.

FURTHER,  the parties hereto agree that the warrants  issued in connection  with
this amendment have a value of $37,500.

         IN WITNESS WHEREOF,  the Borrower and the Lender have caused this First
Amendment to be duly executed by their duly authorized  officers,  all as of the
day and year first above written.

WITNESS:                           TRIDENT GROWTH FUND, LP
                                   By: TRIDENT MANAGEMENT, LLC, its
                                       GENERAL PARTNER

----------------------------------   By:  /s/  SCOTT COOK
Name:                                     ----------------------------
                                          Scott Cook, Authorized Member

WITNESS:                                  CONTINENTAL SOUTHERN RESOURCES, INC.

                                     By:  /s/  STEPHEN P. HARRINGTON
----------------------------------        --------------------------
Name:                                              President

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