Document:

EXHIBIT 10.6

                           PURCHASE AND SALE AGREEMENT
                           ---------------------------

THIS AGREEMENT made effective the 1st day of January, 2002.

BETWEEN:  HADRO RESOURCES, INC., a body corporate incorporated under the laws of
          the State of Nevada and carrying on business in the United States of
          America

          (the "Vendor")

AND:      U.S. OIL & GAS RESOURCES INC. a body corporate incorporated under the
          laws of British Columbia, and carrying on business in the City of
          Vancouver, British Columbia

          (the "Purchaser")

AND:      OAKHILLS ENERGY INC., THOR ENERGY INC., and O.J. OIL & GAS INC.,
          bodies corporate incorporated under the laws of the State of Oklahoma
          and each carrying on business in the City of Holdenville, Oklahoma

          (collectively "Subs 1-3")

WHEREAS the Vendor is the registered and beneficial owner of all of the issued
and outstanding common shares in the capital stock of Subs 1-3 (the "Subs 1-3
Shares"); and

WHEREAS the Vendor and the Purchaser entered into an agreement dated May 14,
2001 wherein the Vendor acquired the Subs 1-3 in exchange for 10,000,000
restricted common shares in the capital of the Vendor; and

WHEREAS the Vendor wishes to sell, transfer and convey its current interests in
28 of the wells owned by Subs 1-3 listed in Exhibit "A" of this Agreement, that
are more fully described in the Reserve and Economic Evaluation for Oak Hills
Energy as of April 1, 2001 by Fletcher Lewis Engineering, a copy of which is
provided in Exhibit "F" to this Agreement, subject to assignments currently in
place with the Bank N.A. of Oklahoma, USA to the Purchaser; and

WHEREAS the Purchaser is offering to purchase the Vendor's interests in 28 of
the wells owned by Subs 1-3 listed in Exhibit A of this Agreement subject to
assignments currently in place with the Bank N.A. of Oklahoma, USA, and subject
to the terms and conditions contained herein;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual
covenants, agreements, representations and warranties contained herein and other
good and valuable consideration (the receipt and sufficiency of which is hereby
acknowledged) the parties covenant and agree as follows:

<PAGE>

1.   INTERPRETATION

1.1  Where used herein, the following terms shall have the following meanings:

     (a)  "Agreement", "hereto", "hereof", "herein", "hereby", and "hereunder"
          and similar expressions mean and refer to this Agreement as the same
          may be amended, modified or supplemented at any time or from time to
          time;

     (b)  "Assets" means the current "as is" rights, title and interests
          inherent to the 28 of the wells owned by Subs 1-3 listed in Exhibit
          "A" of this Agreement of Subs 1-3 subject to assignments currently in
          place with the Bank N.A. of Oklahoma, USA;

     (c)  "CDNX" means the Canadian Venture Exchange;

     (d)  "Closing" means the completion of the purchase and sale of to the 28
          of the wells owned by Subs 1-3 listed in Exhibit "A" of this Agreement
          of Subs 1-3 subject to assignments currently in place with the Bank
          N.A. of Oklahoma, USA pursuant hereto which shall take place within
          ten (10) business days of the acceptance of this Agreement for filing
          with the CDNX and the granting of shareholder approval of the Vendor
          to this Agreement, but in any event, not later than March 1, 2002, or
          on such other date as may be orally agreed between the parties hereto;

     (e)  "Purchase Price" means the purchase price set out in paragraph 2.1
          hereof;

     (f)  "The Original Consideration Shares" means the 10,000,000 common
          restricted shares in the capital stock of the Vendor issued to the
          Purchaser as consideration for the purchase of the Subs 1-3 Shares;
          and

     (g)  "Purchaser's Counsel" means Page Fraser and Associates, Barristers and
          Solicitors, of Vancouver, British Columbia in their capacity as
          counsel to the Vendor.

2.   PURCHASE OF ASSETS

2.1  Subject to Closing of this Agreement, as of the Closing the Vendor hereby
     sells, assigns, transfers and conveys to the Purchaser, and the Purchaser
     hereby purchases from the Vendor, the Assets as defined herein in
     consideration of:

     a)   8,000,000 restricted common shares in the capital of the Vendor
          previously issued to the Purchaser that forms part of the Original
          Consideration Shares on Closing and,

     b)   an option on a further 1,000,000 of the Original Consideration Shares
          shall be granted to the Vendor by the Purchaser and extend for an
          exercise term from the date of this Agreement to December 31, 2002 at
          an option price per share of $0.75 US funds/share, such option may be
          exercised in whole or in part over the exercise term and according to
          the terms and conditions stated on Exhibit "B" of this Agreement, and
          such option is assignable by the Vendor.

     c)   an option on a further 500,000 of the Original Consideration Shares
          shall be granted to the Vendor by the Purchaser and extend for an
          exercise term from the date of this Agreement to June 30, 2004 at an
          option price per share of $1.25 US funds/share, such option may be
          exercised in whole or in part over the exercise term and according to
          the terms and conditions stated on Exhibit "C" of this Agreement, and
          such option is assignable by the Vendor.

<PAGE>

     d)   Upon expiry of either option term, any unexercised shares subject to
          the option may be held or sold by the Purchaser to a maximum of the
          lessor of 50,000 shares per calendar month or $200,000 US funds
          realized in gross proceeds from any sales of shares per calendar month
          per the terms stated on Exhibit "D" of this Agreement.

     e)   A further 500,000 of the Original Consideration Shares shall be
          utilized by the Purchaser at the discretion of the Purchaser as
          remuneration to purchase future ownership interests in oil and gas
          interests purchased by the Vendor. The price per share to be utilized
          will reflect the trading value of the shares of the Vendor, in
          conjunction with the status of the shares at the date of the purchase
          of the interest by the Purchaser to determine valuation of the shares.

2.2  The Vendor and the Purchaser agree that costs and disbursements made
     relating to the operation or capital upgrades of the Assets shall be borne
     by the Purchaser after the date of this Agreement from the date of this
     Agreement, and that the Purchaser may contract with the Vendor or Oakhills
     Energy, Inc. to carry out work or services relating to the Assets on a cost
     plus basis, with payment terms on a cash basis.

2.4  The Vendor and the Purchaser agree that the Vendor shall remain the owner
     of Subs 1-3 and responsible for their management, condition, and operation.
     The Vendor agrees that the Purchaser may request and obtain oil and gas
     related operating and well upgrade services from the some of the Subs 1-3
     at costs and rates incurred by Subs 1-3. The Vendor shall separate the
     Assets from its accounting software programs located in Oakhills Energy,
     Inc. offices located in Holdenville Oklahoma, and account for them
     separately on behalf of the Purchaser.

2.5  The Vendor and the Purchaser agree that the Vendor shall continue to enjoy
     unencumbered rights to Subs 1-3 and their management, and be responsible
     for all declared liabilities of the Subs 1-3 and loans currently
     outstanding to the Bank NA of Oklahoma. The parties hereto agree that the
     loan currently outstanding to the Bank NA of Oklahoma shall be fully repaid
     on or before June 30, 2004. If the Vendor and Subs 1-3 fail to repay this
     loan by June 30, 2004, then the option price stated in 2.1(c) of this
     Agreement shall become $1.35 per share for the remainder of this option's
     term from July 1, 2004. The Vendor shall provide proof of the status of the
     loan with the Bank NA of Oklahoma at June 30, 2004. The Vendor and the
     Purchaser agree that failure to retire the loans currently outstanding to
     the Bank NA of Oklahoma by June 30, 2004 shall not constitute a fundamental
     breach of this Agreement.

2.6  The Vendor agrees to indemnify the Purchaser and Jurgen Wolf, a businessman
     residing in White Rock, British Columbia against any and all claims made by
     the Bank NA of Oklahoma pursuant to personal and corporate guarantees
     provided by the Purchaser and Jurgen Wolf to the Bank NA of Oklahoma with
     respect to the loan currently outstanding to the Bank NA of Oklahoma
     relating to Subs 1-3.

2.7  The Vendor and the Purchaser agree that the Vendor shall be responsible for
     unaccrued wages owed to Doug Humphreys, operating manager of Subs 1-3, and
     for any vesting well percentage ownership regarding wells owned by Subs 1-3
     under the employment agreement between Doug Humphreys and Subs 1-3. The
     Purchaser shall be responsible for providing to Doug Humphreys any vesting
     well percentage ownership regarding the Assets being acquired under this
     Agreement, and for any other undeclared or unaccrued deals conducted with
     Doug Humphreys not reflected in the financial statements dated June 30,
     2001 of Subs 1-3. The Purchaser provides that after the Assets under this
     Agreement are transferred to the Purchaser, there are no other undeclared
     liabilities with respect to Subs 1-3 that will impact the valuation or
     liabilities of Subs 1-3.

<PAGE>

3.   REPRESENTATIONS AND WARRANTIES OF THE VENDOR

3.1  The Vendor hereby represents and warrants to and in favour of the Purchaser
     (the Purchaser relying on such representations and warranties in entering
     into this Agreement) that, as of the date hereof and as at the Closing:

     (a)  the Vendor is the registered owner of all of the issued and
          outstanding shares in the capital stock of Subs 1-3 and the Vendor has
          a 100% beneficial right, title and interest in and to their assets and
          in particular the Assets being transferred under this Agreement
          subject to assignments currently in place with the Bank N.A. of
          Oklahoma, USA;

     (b)  the Vendor has the full capacity and authority to sell, transfer,
          convey, assign or option its Assets in accordance with the terms of
          this Agreement subject to assignments currently in place with the Bank
          N.A. of Oklahoma, USA;

     (c)  this Agreement and all other documents executed and delivered by the
          Vendor pursuant hereto constitute legal, valid and binding obligations
          of the Vendor enforceable in accordance with their terms;

     (d)  the Vendor's legal and beneficial title to the Assets is subject to
          assignments currently in place with the Bank N.A. of Oklahoma, USA and
          are provided on an "as is" basis in substantially the same condition
          as when the Assets were acquired from the Purchaser in a former
          transaction;

     (e)  the Vendor is not a party to any actions, suits or other legal,
          administrative or arbitration proceedings or government investigations
          which might reasonably be expected to result in impairment or loss of
          the Vendors' interest in the Assets;

     (f)  the entering into of this Agreement by the Vendor and the completion
          of sale by the Vendor of the Assets pursuant hereto will not, to the
          best of its knowledge, result in the violation of any law, regulation
          or statute of the Province of British Columbia or the United States;

     (g)  the Vendor has incurred no obligations or liabilities, contingent or
          otherwise, in respect of this transaction for which the Vendor shall
          have any obligation or liability;

     (h)  Oakhills Energy, Inc. is a private company duly incorporated, properly
          organized, validly existing and qualified to carry on business under
          the laws of the State of Oklahoma with all necessary power, authority
          and capacity to own or otherwise hold its property and assets, is in
          good standing, and has conducted its business in accordance with
          applicable laws. Oakhills Energy, Inc. is the operating company for
          Subs 1-3, and companies other Oakhills Energy, Inc. included in Subs
          1-3 are under amalgamation into Oakhills Energy, Inc.;

<PAGE>

     (i)  At the date of this Agreement, Subs 1-3 do not own any shares in any
          corporations or any beneficial interests in any other entities, nor
          are Subs 1-3 a party to any agreements of any nature to acquire any
          such shares or beneficial interests or to acquire or lease any other
          business operations, such situation may change after Closing;

     (j)  there are no suits or proceedings at law or equity before or by any
          federal, provincial, municipal or other governmental department,
          commission, board, bureau, agency or instrumentality, which could
          adversely affect the business of Subs 1-3 or the purchase and sale of
          the Assets herein contemplated.

3.2  The Vendor acknowledges and agrees that the Vendor has entered into this
     Agreement relying on the warranties and representations and other terms and
     conditions hereof.

4.   REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

4.1  The Purchaser represents and warrants to the Vendor (the Vendor relying on
     such representations and warranties in entering into this Agreement) that
     as of the date hereof:

     (a)  the Purchaser is a corporation duly incorporated under the laws of the
          province of British Columbia, is validly existing and in good standing
          with respect to the filing of annual returns, and has the authority
          and capacity to enter into this Agreement and to carry out the
          transactions contemplated hereby;

     (b)  all information with respect to the business activities of the
          Purchaser disclosed to the Vendor is true and correct;

     (c)  all necessary corporate actions have been or will be taken prior to
          Closing to authorize the Purchaser to enter into and perform this
          Agreement and this Agreement constitutes a legal, valid and binding
          obligation of the Purchaser enforceable against the Purchaser in
          accordance with its terms;

     (d)  the entering into of this Agreement and the transactions contemplated
          hereby will not result in the violation or breach of any of the terms
          and provisions of any indenture, lease or agreement, written or oral,
          to which the Purchaser is a party or by which the Purchaser is bound
          or affected;

     (e)  the entering into of this Agreement by the Purchaser and the
          completion by the Purchaser of the purchase of the Assets will not
          result in the violation of any law of the Province of British Columbia
          or the laws of the United States of America applicable therein;

     (f)  the Purchaser has not made any arrangements, commitments or
          undertakings for the payment of any finder's fees, commissions or
          brokerage fees in respect of the transactions contemplated by this
          Agreement for which the Purchaser will have any liability;

<PAGE>

     (g)  the entering into of this Agreement and the transactions contemplated
          hereby will not result in the violation of any of the terms and
          provisions of the constating documents or bylaws of the Purchaser or
          the Purchaser's Listing Agreement with the CDNX;

     (h)  the Purchaser acknowledges and agrees to not deposit with any
          Brokerage or account any of the Original Consideration Shares
          registered in the names of the Purchaser that will be delivered by the
          Vendor on Closing, or any of the Original Consideration Shares
          registered in the names of the Purchaser currently in the possession
          of the Purchaser unless the option terms outlined in 2.1(b), 2.1(d)
          have ended, and the Purchaser has informed the Vendor in writing of
          its actions relating to such deposit within 3 business days of such
          deposit. If shares are to be deposited, the Purchaser agrees to
          cooperate with the Vendor to deposit such shares with a brokerage
          approved by the Vendor where the subject shares will not be loaned out
          by the brokerage.

4.2  The Purchaser acknowledges and agrees that the Purchaser has entered into
     this Agreement relying on the warranties and representations and other
     terms and conditions hereof.

5.   COVENANTS OF THE VENDOR

5.1  The Vendor covenants and agrees that it will:

     (a)  cause to be taken all reasonably necessary steps, actions and
          corporate proceedings on the part of Subs 1-3 (including the approval
          of this Agreement by the directors of Subs 1-3) to enable it to vest a
          good and marketable title to the Assets to the Purchaser, subject to
          assignments currently in place with the Bank N.A. of Oklahoma, USA,
          such assignments are acknowledged and accepted by the Purchaser;

     (b)  if necessary, forthwith after the execution of this Agreement, obtain
          all necessary consents that may be required in respect of the
          acquisition by the Purchaser of the Assets;

     (d)  take all reasonably necessary steps and perform all reasonable acts
          necessary to register the transfer of Assets to the Vendor as these
          transfers occur subject to assignments currently in place with the
          Bank N.A. of Oklahoma, USA.

6.   SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

6.1  All representations, warranties, covenants and agreements made by the
     Vendor in this Agreement or pursuant hereto shall, unless otherwise
     expressly stated, survive the Closing and the payment of the consideration.

6.2  All representations, warranties, covenants and agreements made by the
     Purchaser in this Agreement or pursuant hereto shall, unless otherwise
     expressly stated, survive the Closing, execution of further conveyances,
     the payment of consideration and any investigation at any time made by or
     on behalf of the Purchaser.

7.   CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATIONS

7.1  Notwithstanding anything herein contained, the obligation of the Purchaser
     to complete the purchase of the Assets hereunder is subject to the
     following conditions:

     (a)  the representations and warranties of the Purchasers contained in this
          Agreement shall be true as of Closing;

     (b)  all of the covenants, agreements and deliveries of the Purchasers to
          be performed on or before the Closing pursuant to the terms of this
          Agreement shall have been duly performed;

     (c)  prior to the Closing, the Assets shall not have experienced any event
          or condition or taken any action of any character or have become aware
          of any action of any character that would adversely affect the Assets,
          or financial condition of the Assets so as to materially reduce the
          value of the Assets to the Purchaser;

     (d)  The Purchaser and its counsel in their sole discretion are satisfied
          that at the Closing:

          (i)  The Purchaser will acquire good and valid title to the Assets
               subject to assignments currently in place with the Bank N.A. of
               Oklahoma, USA in form substantially as they were when they were
               sold to the Vendor by the Purchaser in 2001; and

          (ii) this transaction will not be subject to being set aside under any
               applicable insolvency, bankruptcy, or similar legislation;

     (e)  the transactions contemplated by this Agreement shall have been duly
          approved by the boards of directors of Subs 1-3, the Purchaser, and by
          the CDNX, and shareholder approval of the Purchaser, if necessary; and

     (f)  no federal, provincial, regional or municipal government or any agency
          thereof shall have enacted any statute, regulation or bylaws or
          announced any policy that will materially and adversely affect the
          Assets or the right of the Purchaser to the full enjoyment of the
          Assets.

7.2  The foregoing conditions are for the exclusive benefit of the Vendor and
     such conditions may be waived in whole or in part by the Vendor on or prior
     to the Closing by delivery to the Vendor of a written waiver to that
     effect, signed by the Vendor.

9.   CONDITIONS PRECEDENT TO OBLIGATIONS OF THE VENDOR

9.1  Notwithstanding anything herein contained the obligation of the Vendor to
     complete the sale hereunder is subject to the following conditions:

<PAGE>

     (a)  the representations and warranties of the Vendor contained in this
          Agreement shall be true as of the Closing;

     (b)  The Vendor shall have performed and complied with all covenants,
          agreements and conditions required by this Agreement to be performed
          or complied with by it at or prior to the Closing; and

     (c)  the transactions contemplated by this Agreement shall have been duly
          approved by the boards of directors of Subs 1-3 and the Vendor, if
          necessary.

9.2  The foregoing conditions are for the exclusive benefit of the Vendor and
     any such condition may be waived in whole or in part by the Vendor at or
     prior to the time of Closing by delivering to the Vendor a written waiver
     to that effect, signed by the Vendor.

10.  VENDORS' DELIVERIES

10.1 At the Closing the Vendor shall deliver or cause to be delivered to the
     Vendor or to the Vendor's agent:

     (a)  a resolution of the board of directors of Subs 1-3 and the Vendor
          approving the transfer of the Assets to the Vendor;

     (b)  copies of all documents (including, without limitation, records,
          correspondence and contracts relating to the Assets that have not been
          previously delivered before Closing and that the Vendor in its
          reasonable opinion considers to be necessary or desirable for the
          conduct by the Vendor of any activities related to the Assets.

     (c)  a split accounting in the records of Oakhills Energy, Inc. indicating
          the Assets transferred to the Purchaser and a further accounting of
          any Services conducted to the benefit of the Assets after January 1,
          2002 to the date of Closing, and any revenues owing to the Purchaser
          relating to the Assets after January 1, 2002 to the date of Closing.

     (d)  a share certificate in the amount of 1,000,000 shares of the Original
          Consideration Shares registered in the names of the Purchaser in the
          possession of the Vendor and bearing the certificate #498.

11.  PURCHASER'S DELIVERIES

11.1 At the Closing, the Purchaser shall deliver or cause to be delivered a BOD
     resolution authorizing the transfer of 8,000,000 shares of the Original
     Consideration Shares registered in the names of the Purchaser evidenced by
     certificate #'s 499-506 and a medallion signature guaranteed Stock Power of
     Attorney, a copy of which is attached in Exhibit "E" of this Agreement.

<PAGE>

12.  LOSS OR DAMAGE TO THE ASSETS PRIOR TO CLOSING

12.1 Until Closing, the Vendor shall cause Subs 1-3 to, and the Assets to
     transfer to the Purchaser to continue to, satisfy and comply with its
     operating and business obligations and shall not make or initiate any
     actions that could result in the default in or breach of any term,
     condition, provision or obligation to be performed in the course operation
     of the Assets which would impair or result in the loss of an of the Assets'
     state of current interest or adversely affect the Assets related to the
     purchase and sale herein contemplated.

13.  NOTICES

13.1 Any notice or other writing required or permitted to be given hereunder
     shall be deemed to be sufficiently given if personally delivered, if mailed
     postage prepaid in any post office in Canada or the United States, or if
     given by telegram, telecopier, or facsimile, addressed to the addresses
     given for the parties to this Agreement.

13.2 Any such notice given as aforesaid shall be deemed to have been given to
     the parties hereto when delivered, if personally delivered, on the third
     business day following the date of mailing, if mailed, and on the same day
     as the telegraphing, telecopying, or facsimile transmission thereof, if
     telegraphed, telecopied, or transmitted by facsimile, PROVIDED HOWEVER,
     that during the period of any postal interruption in Canada or the United
     States any notice given hereunder by mail shall be deemed to have been
     given only as of the date of actual delivery of the same.

13.3 Any party may, from time to time by notice in writing given as aforesaid,
     change its address for the purposes of this section by giving notice of
     this change to the other parties.

14.  GENERAL PROVISIONS

14.1 Time shall be of the essence of this Agreement.

14.2 This Agreement contains the whole agreement between the Vendor and the
     Purchaser in respect of the purchase and sale of the Assets contemplated
     hereby and there are no warranties, representations, terms, conditions or
     collateral agreements, express, implied or statutory, other than expressly
     set forth in this Agreement.

14.3 This Agreement shall enure to the benefit of and be binding upon the
     parties hereto and, as applicable, their heirs, administrators, successors
     and assigns, and any reference herein to the Vendor or the Purchaser shall
     include, as applicable, their successors and assigns.

14.4 The parties hereto shall execute such further and other documents and do
     such further and other things as may be necessary to carry out and give
     effect to the intent of this Agreement.

14.5 This Agreement shall in all respects be governed by and be construed in
     accordance with the laws of the State of Nevada and the parties hereto
     agree to attorn to the courts thereof.

14.6 If any one or more of the provisions contained in this Agreement should be
     invalid, illegal or unenforceable in any respect in any jurisdiction, the
     validity, legality and enforceability of such provision or provisions shall
     not in any way be affected or impaired thereby in any other jurisdiction
     and the validity, legality and enforceability of the remaining provisions
     contained herein shall not in any way be affected or impaired thereby,
     unless in either case as a result of such determination this Agreement
     would fail of its essential purpose.

<PAGE>

14.7 Unless otherwise indicated, all dollar amounts referred to in this
     Agreement are in US dollars.

14.8 All costs and expenses (including, without limitation, the fees and
     disbursements of legal counsel and any investment advisors) incurred in
     connection with this Agreement and the transactions contemplated hereby
     shall be paid by the party incurring such expenses unless otherwise agreed
     to between the parties.

14.9 This Agreement may be executed in one or more counterparts and by
     facsimile, each of which counterparts so executed shall constitute an
     original and all of which together shall constitute one and the same
     agreement.

14.10 The parties hereto acknowledge that Page Fraser and Associates represents
     the Purchaser and has provided no legal advice with respect to this
     Agreement to any other party.

14.11 The parties undersigned have read, acknowledged, understood and accepted
     or, in the case of Subs 1-3, consented to, the terms of the offer above.

<PAGE>

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto as of
the day and year first above written.

U.S. OIL & GAS RESOURCES INC.

-------------------------------
Authorized Signatory

HADRO RESOURCES, INC.

-------------------------------
Authorized Signatory

The terms of the above offer are hereby acknowledged and consented to:

OAKHILLS ENERGY INC.

-------------------------------
Authorized Signatory

THOR ENERGY INC.

-------------------------------
Authorized Signatory

O.J. OIL & GAS INC.

-------------------------------
Authorized SignatoryEXHIBIT 10.11C

                           SECOND AMENDED AND RESTATED
                             AND ADVISORY AGREEMENT
                                     BETWEEN
                            AMERIVEST PROPERTIES INC.
                                       AND
                          SHERIDAN REALTY ADVISORS, LLC

     THIS AGREEMENT originally dated as of December 22, 1999 and revised and
restated as of March 12, 2001, is further revised and restated as of December
31, 2001 between AmeriVest Properties Inc., a Maryland corporation (the
"Company") and Sheridan Realty Advisors, LLC, a Colorado limited liability
company (the "Advisor")

                              W I T N E S S E T H:

     WHEREAS, the Company owns certain real estate and related assets consisting
primarily of small-tenant office buildings; and

     WHEREAS; the Company is qualified as a real estate investment trust as
defined in the Internal Revenue Code of 1986, as the same may be amended or
modified from time to time (which, together with any regulations and rulings
issued from time to time thereunder is hereinafter called the "Code"), and
invests its funds in investments permitted for a real estate investment trust;
and

     WHEREAS, the individuals associated with the Advisor have extensive
experience in the acquisition, operation, management, administration and
disposition of real estate assets and in real estate capital markets; and

     WHEREAS; the Board of the Directors of the Company decided on November 12,
1999 that it was in the Company's best interests to pursue an arrangement to
avail itself of the experience, sources of information, advice and assistance of
the Advisor and to have the Advisor perform the duties and responsibilities
hereinafter set forth, on behalf of and subject to the supervision of the
directors of the Company (the "Directors"), as provided herein; and

     WHEREAS, the Board of Directors of the Company and the Advisor have agreed
that, effective as of January 1, 2001, the Company will acquire the property
management, accounting and administrative services business of the Advisor for
the sum of $100 plus the book value of the Advisor's assets, with the Advisor
continuing to advise the Company solely in connection with capital markets and
real estate acquisitions

     NOW THEREFORE, in consideration of the premises and of the mutual covenants
herein contained, the parties agree as follows:

                                       1

<PAGE>

     1. Duties of the Advisor. Subject to the supervision of the Directors and
the other provisions of this Agreement, the Advisor will be responsible for
certain capital markets and real estate investment activities on behalf of the
Company and, subject to Section 17 hereof, shall provide such services and
activities relating to the assets, operations and business plan of the Company
as may be appropriate, including:

        1.1 preparing and submitting an annual budget and business plan for
approval by the Directors (the "Business Plan");

        1.2 using its best efforts to present to the Company for approval by the
Directors, a continuing and suitable real estate investment program consistent
with the investment policies and objectives of the Company as set forth in the
Business Plan;

        1.3 using its best efforts to present to the Company investment
opportunities consistent with the Business Plan and such investment program as
the Directors may adopt from time to time;

        1.4 serving as the Company's investment and financial advisor and
providing research, economic, and statistical data in connection with the
Company's investments and investment and financial policies;

        1.5 on behalf of the Company, investigating, selecting and conducting
relations with borrowers, lenders, mortgagors, brokers, investors, builders,
developers and others; provided however, that the Advisor shall not retain on
the Company's behalf any consultants or third party professionals, other than
legal counsel, without prior approval of the Directors;

        1.6 consulting with the Directors and furnishing the Directors with
advice and recommendations with respect to the making, acquiring (by purchase,
investment, exchange, or otherwise), holding, and disposition (through sale,
exchange, or otherwise) of investments consistent with the Business Plan of the
Company;

        1.7 advising the Company in connection with public or private sales of
shares or other securities of the Company, or loans to the Company, but in no
event in such a way that the Advisor could be deemed to be acting as a broker
dealer or underwriter;

        1.8 monthly and at any other time requested by the Directors, making
reports to the Directors regarding the Company's performance to date in relation
to the Company's approved Business Plan and its various components, as well as
the Advisor's performance of the foregoing services;

        1. 9 supervising and managing remodeling, refurbishment, construction or
other capital projects in connection with the real estate properties owned or
managed by the Company.

                                       2

<PAGE>

     2. No Partnership or Joint Venture. The Company and the Advisor are not
partners or joint venturers with each other, and nothing herein shall be
construed so as to make them such partners or joint venturers or impose any
liability as such on either of them.

     3. Records. At all times, the Advisor shall keep proper books of account
and records with respect to the Advisor's activities on behalf of the Company
which books shall be accessible for inspection by the Company at any time during
ordinary business hours, and copies of which shall be provided to the Company
with respect to each quarter within 60 days after the end of each quarter. These
books of account and records are deemed to be the property of the Company. The
Advisor will be entitled to keep copies for all periods for which this Agreement
is in effect.

     4. Additional Obligations of the Advisor. The Advisor shall refrain from
any action (including, without limitation, furnishing or rendering services to
tenants of property or managing or operating real property) that would (a)
adversely affect the status of the Company as a real estate investment trust, as
defined and limited in Sections 856-860 of the Internal Revenue Code, (b)
violate any law, rule, regulation, or statement of policy of any governmental
body or agency having jurisdiction over the Company or over its securities, (c)
cause the Company to be required to register as an investment company under the
Investment Company Act of 1940, or (d) otherwise not be permitted by the
Articles of Incorporation of the Company.

     5. Information Furnished to Advisor. The Directors shall have the right to
change the Business Plan at any time, effective upon receipt by the Advisor of
notice of such change.

     6. Compensation of Advisor. For services rendered under this Agreement, the
Advisor shall receive the following compensation:

        6.1 Advisory Fee. A one-time advisory fee equal to five percent (5%) of
the Equity Value (defined below) of all real property acquired or long-term
leased by the Company during the term of the Agreement. Payment of the Advisory
Fee is intended to cover overhead expenses of the Advisor not covered by the
Administrative fee and is subject to certain limitations on the operating
expenses of the Advisor as set forth below.

        6.2 Capital Project Fee. A supervision and project management fee equal
to three percent (3%) of the total cost of all capital projects in excess of
$100,000 and approved by the Company, with respect to projects commenced by the
Company after September 1, 2000.

     7. Incentive Compensation. As additional compensation for its services,
Advisor shall receive an incentive fee consisting of 750,000 common stock
purchase warrants ("Incentive Warrants") exercisable at $5 per share with a term

                                       3

<PAGE>

of five (5) years. The warrants shall be issued as of December 22, 1999 and
225,000 Incentive Warrants shall vest immediately. The balance of 525,000
Incentive Warrants shall vest and become exercisable only as follows:

        7.1 Upon completion of an acquisition, purchase or long-term lease of
real property by the Company, the remaining Incentive Warrants shall vest in an
amount equal to 2.1% of the Equity Value of the Property acquired. "Equity
Value" of a property is equal to the acquisition price of the property
(including expenses of purchase) less any mortgage debt assumed or incurred in
connection with the acquisition plus any capital expenditures and lease-up costs
incurred in connection with the property during the first 12 months of
ownership. Any cash proceeds from the sale or refinancing of assets owned by the
Company and excess cash flow generated by assets owned by the Company that is
received by the Company subsequent to January 1, 2000 and that has not been
previously deducted from the acquisition price in a prior determination of
Equity Value shall also be deducted from the acquisition price as part of the
calculation of Equity Value. The total amount of Equity Value of real property
subject to incentive compensation under this Agreement shall not exceed $ 50
million.

        7.2 Upon issuance, Incentive Warrants shall be issued to the Advisor for
distribution to members and employees of the Advisor in accordance with the
Warrant Distribution Schedule approved by the Company. This Warrant Distribution
Schedule may be reasonably adjusted from time to time by the Advisor, with
approval of the Directors. All members and employees of the Advisor who are
scheduled to receive Incentive Warrants shall execute a Buy-Sell Agreement with
the Advisor which contains a vesting schedule and provides for the disposition
of the Incentive Warrants in a manner reasonably acceptable to the Company in
the event of the death, retirement or termination of the member or employee.

        7.3 Notwithstanding the vesting schedule, the warrants shall not be
exercisable by the
holders until January 1, 2003.

        7.4 Issuance of Incentive Warrants is subject to all applicable rules of
the Securities and Exchange Commission and the National Association of
Securities Dealers or the American Stock Exchange, as applicable. The Company
and the Advisor agree to cooperate with each other as may be required to obtain
all approvals as may be necessary to complete the issuance of Incentive Warrants
under this Agreement, including the approval of shareholders of the Company as
may be required. The failure to obtain shareholder approval for the issuance of
Incentive Warrants shall not invalidate any other provisions of this Agreement.

     8. Statements. The Advisor shall furnish to the Company not later than 30
days after the end of each calendar quarter, a statement showing the computation
of the fees, if any, payable with respect to the preceding calendar quarter (or,
in the case of incentive compensation, for the preceding Fiscal Year, as
appropriate) under this Agreement. The final settlement of incentive
compensation for each Fiscal Year shall be subject to adjustment in accordance
with, and upon completion of, the annual audit of the Company's financial

                                       4

<PAGE>

statements; any payment by the Company or repayment by the Advisor that shall be
indicated to be necessary in accordance therewith shall be made promptly after
the completion of such audit and shall be reflected in the audited statements to
be published by the Company.

     9. Compensation for Additional Services. If and to the extent that the
Directors shall request the Advisor or any director, officer, partner, or
employee of the Advisor to render services for the Company other than those
required to be rendered by the Advisor hereunder, such additional services, if
performed, will be compensated separately on terms to be agreed upon between
such party and the Company in advance of the performance of such services.

     10. Expenses of the Advisor. Without regard to the amount of compensation
or reimbursement received hereunder by the Advisor, the Advisor shall bear the
following expenses:

         10.1 employment expenses of the personnel employed by the Advisor
(including Directors, officers, and employees of the Company who are directors,
officers, or employees of the Advisor or of any company that controls, is
controlled by, or is under common control with the Advisor), including, but not
limited to, fees, salaries, wages, payroll taxes, travel expenses, and the cost
of employee benefit plans and temporary help expenses;

         10.2 advertising and promotional expenses, including investor
relations, incurred in seeking investments for the Company;

         10.3 rent, telephone, utilities, office furniture and furnishings, and
other office expenses of the Advisor and the Company, except as any of such
expenses relates to an office maintained by the Company separate from the office
of the Advisor; and

         10.4 miscellaneous administrative expenses relating to performance by
the Advisor of its functions hereunder.

     11. Expenses of the Company. The Company shall pay all of its expenses not
assumed by the Advisor, including the cost of all operating personnel and other
expenses related to the day-to-day operating and management of the Company.

     12. Other Activities of Advisor. The Advisor, its officers, directors, or
employees or any of its Affiliates may engage in other business activities
related to real estate investments or act as advisor to any other person or
entity (including another real estate investment trust), including those with
investment policies similar to the Company, provided that the Advisor and its
officers, directors, or employees and any of its Affiliates shall present in
writing to the Company on a right of first refusal basis any real estate
investment opportunity that comes to the Advisor or such persons, regardless of
whether such opportunity is in accordance with the Company's Business Plan.

                                       5

<PAGE>

     13. Limitation on Advisory Fee. To the extent that the Advisory Fee during
the initial term of this Agreement exceeds the budget submitted by the Advisor
and contained in the Business Plan ("Approved Budget"), the Advisor shall refund
such excess fees to the Company. For purposes of calculating the Approved
Budget, the parties shall include the expenses of the Advisor from September 1,
1999.

     14. Term; Termination of Agreement. This Agreement shall commence effective
as of January 1, 2000 (the "Effective Date") and shall continue in force until
December 31, 2003, and, thereafter, it may be renewed from year to year, subject
to any required approval of the Stockholders of the Company, by the approval of
a majority of the Directors who are not affiliated with the Advisors. This
Agreement may be terminated for any reason without penalty upon 120 days'
written notice by the Company to the Advisor by the vote of a majority of the
Directors who are not Affiliates of the Advisor or by the vote of holders of a
majority of the outstanding shares of the Company. Notwithstanding the
foregoing, however, in the event of any material change in the ownership,
control, or management of the Advisor, the Company may terminate this Agreement
without penalty and without advance notice to the Advisor. Resignation of either
William T. Atkins or Charles K. Knight from the Advisor without prior approval
of the Company shall be deemed a material change in control. If the Company
desires to renew after the initial term or after the first one-year renewal
following the initial term and the Advisor does not agree to renew or cannot
renew (because both of William Atkins and Charles Knight are not willing to
renew or for any other reason), then for the 30-day period following the first
30-day period after termination of this Agreement, the Company will have the
right to acquire all the outstanding Incentive Warrants at a price equal to the
greater of (a) the amount, if any, by which the "Thirty Day Average Price", as
defined below, exceeds the exercise price of the Incentive Warrants, and (b)
$.001 per Incentive Warrant. The Company may effect a purchase of Incentive
Warrants by delivering to the Warrant Holder a notice of repurchase together
with a check or money order for the amount of payment. As used in this
paragraph, the term "Thirty Day Average Price" means the weighted average sale
price for the Company's common stock during the entire 30-day period following
termination of this Agreement.

     15. Change of Control If there occurs a "Change in Control", as defined
below, and this Agreement is terminated within 90 days after the occurrence of
the Change in Control other than in the manner specified in Section 14 above,
then all Incentive Warrants shall become exercisable immediately upon that
termination of this Agreement and the Company shall pay to Advisor within 30
days after that termination all cash compensation owed by the Company to the
Advisor through the date of termination plus an amount equal to the excess of
all costs, liabilities and expenses incurred by Advisor in the performance of
its obligations pursuant to this Agreement since the commencement of this
Agreement over all compensation and reimbursement received by Advisor pursuant
to this Agreement. For purposes of this Section 15, a Change in Control shall
mean that the individuals who, as of the Effective Date, are members of the
Board (the "Incumbent Board"), cease for any reason to constitute at least a
majority of the Board; provided however, that if the election, or nomination for
election by the Company's stockholders, of any new director was approved by a
vote of at least a majority of the then Incumbent Board, such new director

                                       6

<PAGE>

shall, for purposes of this Section 15, be considered as a member of the
Incumbent Board; provided further however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed
office as a result of either an actual or threatened "Election Contest" (as
described in Rule 14a-11 promulgated under the 1934 Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board (a "Proxy Contest") including by reason of any agreement intended
to avoid or settle any Election Contest or Proxy Contest, and provided further
that the replacement of a Director who is an Affiliate of Advisor by another
director who is an Affiliate of Advisor shall not be considered in determining
whether there has been a change in the number of Incumbent Directors leading to
a possible Change in Control.

     16. Amendments. This Agreement shall not be changed, modified, terminated
or discharged in whole or in part except by an instrument in writing signed by
both parties hereto, or their respective successors or assigns, or otherwise as
provided herein.

     17. Assignment. This Agreement shall not be assigned by the Advisor without
the prior consent of the Company. The Company may terminate this Agreement in
the event of its assignment by the Advisor without the prior consent of the
Company. Such an assignment or any other assignment of this Agreement shall bind
the assignee hereunder in the same manner as the Advisor is bound hereunder.
This Agreement shall not be assignable by the Company without the consent of the
Advisor, except in the case of assignment by the Company to a corporation,
association, trust, or other organization that is a successor to the Company.
Such successor shall be bound hereunder and by the terms of said assignment in
the same manner as the Company is bound hereunder.

     18. Default, Bankruptcy, Etc.. At the option solely of the Directors, this
Agreement shall be and become terminated immediately upon written notice of
termination from the Directors to the Advisor if any of the following events
shall occur:

         18.1 If the Advisor shall violate any provision of this Agreement, and
after notice of such violation shall not cure such default within 30 days; or

         18.2 If the Advisor shall be adjudged bankrupt or insolvent by a court
of competent jurisdiction, or an order shall be made by a court of competent
jurisdiction for the appointment of a receiver, liquidator, or trustee of the
Advisor or of all or substantially all of its property by reason of the
foregoing, or approving any petition filed against the Advisor for its
reorganization, and such adjudication or order shall remain in force or unstayed
for a period of 30 days; or

         18.3 If the Advisor shall institute proceedings for voluntary
bankruptcy or shall file a petition seeking reorganization under the Federal
bankruptcy laws, or for relief under any law for the relief of debtors, or shall
consent to the appointment of a receiver of itself or of all or substantially
all its property, or shall make a general assignment for the benefit of its
creditors, or shall admit in writing its inability to pay its debts generally,
as they become due.

                                       7

<PAGE>

     The Advisor agrees that if any of the events specified in subsections 18.2
and 18.3 of this Section 18 shall occur, it will give written notice thereof to
the Directors within seven days after the occurrence of such event.

     19. Action Upon Termination. From and after the effective date of
termination of this Agreement, pursuant to Sections 17 or 18 hereof, the Advisor
shall not be entitled to compensation for further services hereunder but shall
be paid all compensation accruing to the date of termination based on the Equity
Value of all properties and cash proceeds not yet invested as of the termination
Date. In addition to any obligations hereunder that may have accrued as of the
effective date of termination (such as the obligations to provide reports for
prior months), the Advisor shall forthwith upon such termination:

         19.1 pay over to the Company all monies collected and held for the
account of the Company pursuant to this Agreement;

         19.2 deliver to the Directors a full accounting, including a statement
showing all payments collected by it and a statement of any monies held by it,
covering the period following the date of the last accounting furnished to the
Directors;

         19.3 deliver to the Directors all property and documents of the Company
then in the custody of the Advisor; and

         19.4 cooperate with the Company and take all reasonable additional
steps requested to assist the Company in making an orderly transition of the
advisory functions.

     20. Miscellaneous. The Advisor shall be deemed to be in a fiduciary
relationship to the shareholders of the Company. The Advisor assumes no
responsibility under this Agreement other than to render the services called for
hereunder in good faith, and shall not be responsible for any action of the
Directors in following or declining to follow any advice or recommendations of
the Advisor. Neither the Advisor nor any of its shareholders, directors,
officers, or employees shall be liable to the Company, the Directors, the
holders of securities of the Company or to any successor or assign of the
Company for any losses arising from the operation of the Company if the Advisor
had determined, in good faith, that the course of conduct which caused the loss
or liability was in the best interests of the Company and the liability or loss
was not the result of negligence or misconduct by the Advisor. However, in no
event will the directors, officers or employees of the Advisor be personally
liable for any act or failure to act unless it was the result of such person's
willful misfeasance, bad faith, gross negligence or reckless disregard of duty.

                                       8

<PAGE>

     21. Notices. Any notice, report, or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report, or other communication is accepted by the party to
whom it is given, and shall be given by being delivered at the following
addresses of the parties hereto:

     to the Directors and/or the Company:

                  AmeriVest Properties Inc.
                  1780 South Bellaire Street, Suite 515
                  Denver, CO 80222
                  Attn:  William Atkins, Chief Executive Officer

     to the Advisor:

                  Sheridan Realty Advisors, LLC
                  1780 South Bellaire Street, Suite 515
                  Denver, CO 80222
                  Attn:  Charles K. Knight, President

     Either party may at any time give notice in writing to the other party of a
change of its address for the purpose of this Section 21.

     22. Headings. The section headings hereof have been inserted for
convenience of reference only and shall not be construed to affect the meaning,
construction, or effect of this Agreement.

     23. Governing Law. This Agreement has been prepared, negotiated and
executed in the State of Colorado. The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of Colorado
applicable to agreements made and to be performed entirely in the State of
Colorado.

     24. Execution. This instrument is executed and made on behalf of the
Company by an officer of the Company, not individually but solely as an officer,
and the obligations under this Agreement are not binding upon, nor shall resort
be had to the private property of, any of the Directors, stockholders, officers,
employees, or agents of the Company personally, but bind only the Company
property.

                                       9

<PAGE>

SHERIDAN REALTY ADVISORS, LLC., by their duly authorized officers, have signed
these presents all as of the day and year first above written.

                                            AMERIVEST PROPERTIES INC.

                                            By:  /s/   William Atkins
                                               -------------------------------
                                                       William Atkins
                                                       Chief Executive Officer

                                            SHERIDAN REALTY ADVISORS, LLC.

                                            By:  /s/  Charles K. Knight
                                               -------------------------------
                                                      Charles K. Knight
                                                      President

                                       10

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