Document:

EXHIBIT 10.10

                               THE OILGEAR COMPANY
                           CHANGE OF CONTROL AGREEMENT

         This AGREEMENT (the "Agreement") is made as of the eighth day of
December, 2003, by and between THE OILGEAR COMPANY, a Wisconsin corporation (the
"Company") and Thomas J Price (the "Executive").

         The Executive and the Company recognize that the Executive is currently
an "at will" employee of the Company. The Board of Directors of the Company (the
"Board") has determined that it is in the best interests of the Company and its
shareholders to assure that the Company will have the continued dedication of
the Executive, notwithstanding the possibility, threat or occurrence of a Change
of Control (as defined below) of the Company.

         This Change of Control Agreement is designed to provide the Executive
with certain compensation and benefits upon a Change in Control. During the term
of this Agreement, but prior to the Effective Date (as defined below), the
Executive's employment may be terminated by either the Executive or the Company
at any time in which case neither the Executive nor the Company shall have any
rights under this Agreement. From and after the Effective Date, this Agreement
shall be fully effective between the parties with respect to the subject matter
hereof.

         NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.       Certain Definitions.

         (a) The "Effective Date" shall mean the first date during the term of
this Agreement (as defined in Section 1(b)) on which a Change of Control (as
defined in Section 2) occurs. Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive's employment
with the Company or this Agreement is terminated by the Company prior to the
date on which the Change of Control occurs, and if it is reasonably demonstrated
by the Executive that such termination of employment or of this Agreement (i)
was at the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a specific identified Change of Control, then for all purposes
of this Agreement the "Effective Date" shall mean the date immediately prior to
the date of such termination of employment or purported termination of this
Agreement.

         (b) The term of this Agreement shall be the period commencing on the
date hereof and ending on December 31, 2005; provided, however, that commencing
on December 31, 2004, and on each annual anniversary of such date (such date and
each annual anniversary thereof shall be hereinafter referred to as the "Renewal
Date"), unless previously terminated, the term of the agreement shall be
automatically extended so as to terminate two years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company's Board of
Directors has elected not to extend the the Agreement and has given written
notice to the Executive.

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         2. Change of Control. For the purpose of this Agreement, a "Change of
Control" shall be deemed to have occurred if and when: (a) any 'person' (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934), other than the Company or any of its subsidiaries, the Oilgear Stock
Retirement Plan, the Oilgear Salaried Savings Plus Plan, or any other qualified
or non-qualified plan maintained by the Company or any of its affiliates, is or
becomes a beneficial owner (as defined in Rule 13d-3 promulgated under such
Act), directly or indirectly, of securities of the Company representing 50% or
more of the combined voting power of the Company's then outstanding securities,
(b)at any time less than a majority of the members of the Company Board shall be
persons who were either nominated for election by the Board (prior to any Change
in Control) or were elected by the Board (prior to any Change in Control), (c)
the Company sells, leases or otherwise transfers all or substantially all of its
assets not in the ordinary course of business to another person or party, (d)
the Company is combined (by merger, consolidation or otherwise) with another
corporation and as a result of such combination, less than 50% of the
outstanding securities of the surviving or resulting corporation are owned in
the aggregate by the immediate former shareholders of the Company.

         3. Employment Period. The Company hereby agrees to continue the
Executive in its employ, and the Executive hereby agrees to remain in the employ
of the Company subject to the terms and conditions of this Agreement, for the
period commencing on the Effective Date and ending on the first anniversary of
such date; provided, however, that on each anniversary of the Effective Date the
term of the Agreement shall automatically be extended for an additional one-year
period (restoring the initial one-year term), unless either party notifies the
other party in writing at least 60 days prior to such anniversary. The term of
employment under this Agreement as effective from time to time shall be referred
to as the "Employment Period."

         4. Terms of Employment.

                  (a) Position and Duties.

                           (i) During the Employment Period, [a] the Executive's
position (including status, offices, titles and reporting requirements),
authority, duties and responsibilities shall be at least commensurate in all
material respects with the most significant of those held, exercised and
assigned at any time during the 120-day period immediately preceding the
Effective Date and [b] the Executive's services shall be performed at the
location where the Executive was employed immediately preceding the Effective
Date or any office or location less than 60 miles from such location (the
"Geographical Employment Area").

                           (ii) During the Employment Period, and excluding any
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Executive hereunder, to use the
Executive's reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to [a] serve on corporate, civic or charitable
boards or committees, [b] deliver lectures, fulfill speaking engagements or
teach at educational institutions and [c] manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance

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with this Agreement. It is expressly understood and agreed that to the extent
that any such activities have been conducted by the Executive prior to the
Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective Date
shall not thereafter be deemed to interfere with the performance of the
Executive's responsibilities to the Company.

                  (b) Compensation.

                           (i) Base Salary. During the Employment Period, the
Executive shall receive an annual base salary ("Annual Base Salary") at least
equal to base salary paid or payable, including any base salary which has been
earned but deferred, to the Executive by the Company and its affiliated
companies as reflected on the Company's records immediate prior to the Effective
Date and immediately prior to entering into an agreement with any other party
that could lead to a Change in Control, without regard to any temporary salary
adjustment, such as a temporary salary reduction. During the Employment Period,
the Annual Base Salary shall be reviewed at least annually for possible
increase. Any increase in Annual Base Salary shall not serve to limit or reduce
any other obligation to the Executive under this Agreement. Annual Base Salary
shall not be reduced after any such increase and the term Annual Base Salary as
utilized in this Agreement shall refer to Annual Base Salary as so increased. As
used in this Agreement, the term "affiliated companies" shall include any
company controlled by, controlling or under common control with the Company.

                           (ii) Annual Bonus. In addition to Annual Base Salary,
the Executive shall be eligible to participate in any bonus plan sponsored by
the Company, on a basis consistent with that of other comparable employees.

                           (iii) Welfare Benefit Plans. During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent applicable
generally to other peer executives of the Company and its affiliated companies.

                           (iv) Other Benefits. During the Employment Period,
the Executive shall be entitled to participate in all fringe benefit, expense
reimbursement, vacation, company car or car allowance, as applicable (if
Executive was receiving such benefit prior to the Change of Control), incentive,
savings and retirement plans, practices, policies and programs applicable
generally to other peer executives of the Company and its affiliated companies,
but in no event shall such plans, practices, policies and programs provide the
Executive with less favorable benefits, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at any
time during the 120-day period immediately preceding the Effective Date.

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         5. Termination of Employment.

                  (a) Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance with
Section 13(b) of this Agreement of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective on the 30th day after receipt of such notice by the
Executive (the "Disability Effective Date"), provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. For purposes of this Agreement,
"Disability" shall mean the absence of the Executive from the Executive's duties
with the Company on a full-time basis for 180 consecutive business days as a
result of incapacity due to mental or physical illness which is determined to be
total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive's legal representative (such
agreement as to acceptability not to be withheld unreasonably).

                  (b) Cause. The Company may terminate the Executive's
employment during the Employment Period for Cause. For the sole and exclusive
purposes of this Agreement, the termination of Executive's employment will be
deemed for "Cause" only if:

                           (i) such termination is due to the Executive's fraud
or criminal conduct that is materially injurious to the financial condition or
business reputation of the Company or any of its subsidiaries or affiliates; or

                           (ii) the Executive has materially and willfully
breached his or her responsibilities or willfully failed to comply with
reasonable policies of the Company's Board of Directors; but, in each case, only
if the Company has given the Executive written notice specifying the breach or
failure to comply complained of, demanding that the Executive remedy such breach
or failure to comply and affording the Executive an opportunity to be heard in
connection therewith, and the Executive either failed to remedy such alleged
breach or failed to comply within 30 days from receipt of such written notice or
failed to take all reasonable steps to that end during such 30-day period and
thereafter.

         For purposes of this provision, no act or failure to act, on the part
of the Executive, shall be considered "willful" unless it is done, or omitted to
be done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer or
a senior officer of the Company or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company. The cessation
of employment of the Executive shall not be deemed to be for Cause unless and
until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity,

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together with counsel, to be heard before the Board), finding that, in the good
faith opinion of the Board, the Executive is guilty of the conduct described in
subparagraph (i) or (ii) above, and specifying the particulars thereof in
detail.

                  (c) Good Reason. The Executive's employment may be terminated
by the Executive for Good Reason. For the sole and exclusive purposes of this
Agreement, "Good Reason" shall exist, only if, without Executive's express
written consent:

                           (i) There is a diminution of the Executive's assigned
duties and responsibilities including, without limitation, any removal of the
Executive's title(s), reporting responsibilities or any diminution of the powers
associated with such position. The Executive must deliver written notice to the
Company specifying the diminution in assigned duties that the Executive believes
justifies such termination, and the Company must fail to reverse the same or to
take all reasonable steps to that end within 30 days of receiving such notice;

                           (ii) The Company reduces the Executive's salary below
that in effect as of the Effective Date;

                           (iii) The Company requires the Executive to relocate
Executive's principal business office or his principal place of residence
outside the Geographical Employment Area or assigns to Executive duties that
would require such relocation;

                           (iv) The Company requires the Executive, or assigns
duties to the Executive that would require Executive, to spend more than sixty
normal working days away from the Geographical Employment Area during any
consecutive twelve-month period;

                           (v) The Company fails to continue in effect any cash
or stock-based incentive or bonus plan, retirement plan, welfare benefit plan,
or other benefit plan, unless the aggregate value to the Executive of all such
compensation, retirement and benefit plans provided to the Executive is not less
than their aggregate value as of the date of the Agreement (or as of the Change,
if greater);

                           (vi) The delivery by the Company of a notice of
non-renewal pursuant to Section 3 hereof; or

                           (vii) There is a reasonable determination by the
Executive that as a result of a significant change in management philosophy that
he is in a situation inconsistent with his reasonable professional goals. The
Executive must deliver written notice to the Company specifying the changes in
management philosophy and the reasons that the Executive believes such changes
justifies such termination, and the Company must fail to remedy the same within
30 days of receiving such notice.

For purposes of this Section 5(c), any good faith determination of "Good Reason"
made by the Executive shall be conclusive.

                  (d) Notice of Termination. Any termination by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 13(b) of
this Agreement. For purposes of this

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Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated, and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than thirty days after the giving
of such notice). The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive's or the
Company's rights hereunder.

                  (e) Date of Termination. "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the
Executive of such termination, and (iii) if the Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of death of the Executive or the Disability Effective Date, as the case
may be.

         6. Obligations of the Company upon Termination.

                  (a) Good Reason; Other Than for Cause, Death or Disability.
If, during the Employment Period, the Company shall terminate the Executive's
employment other than for Cause, death or Disability or the Executive shall
terminate employment for Good Reason:

                           (i) The Company shall pay to the Executive in a lump
sum in cash within 15 days after the Date of Termination the Executive's Annual
Base Salary through the Date of Termination to the extent not theretofore paid
(the "Accrued Compensation").

                           (ii) The Company shall pay to the Executive in a lump
sum in cash within 30 days after the Date of Termination an amount equal to two
(2) times his gross annual compensation. For this purpose, the Executive's gross
annual compensation shall be equal to the sum of [a] Executive's base salary at
the time of termination, without regard to any temporary salary adjustment, such
as a temporary salary reduction, [b] the average of the bonus paid to Executive
in the five calendar years immediately prior to the Date of Termination, and [c]
the full value of all perquisites provided to Executive in the calendar year
immediately prior to the Effective Date, including Company automobile, club
dues, stock purchase plan forgiveness and tax preparation. One-fourth of the
amount payable under this Section 6(a)(ii) (the "Non-Compete Payment") shall be
deemed to be allocable to compliance with the covenants applicable to Executive
contained in Section 9 (Confidential Information), Section 10 (Agreement Not to
Solicit Employees) and Section 11 (Non-competition and Inventions). In the event
of Executive's breach of any of these provisions, the Executive shall be
required to remit the Non-Compete Payment to the Company in full within ten (10)
business days following a good faith determination by the Company that such a
breach has occurred.

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                           (iii) For three years after the Executive's Date of
Termination, or until Executive attains age sixty-five, whichever is earlier,
the Company shall continue to provide medical, dental and vision benefits to the
Executive and/or the Executive's family that are at least equal to those which
would have been provided to them in accordance with the plans, programs,
practices and policies described in Section 4(b)(iii) of this Agreement if the
Executive's employment had not been terminated and at a cost which does not
exceed the amount Executive paid for such coverage immediately prior to the
Effective Date, provided, however, that if the Executive becomes reemployed with
another employer and is eligible to receive medical benefits under another
employer provided plan, the medical benefits described herein shall be
terminated;

                           (iv) The Company shall, at its sole expense as
incurred, provide the Executive with outplacement services, the scope and
provider of which shall be selected by the Company in its sole discretion; and

                           (v) To the extent not theretofore paid or provided,
the Company shall timely pay or provide to the Executive any other amounts or
benefits required to be paid or provided or which the Executive is eligible to
receive under any plan, program, policy or practice or contract or agreement of
the Company and its affiliated companies (such other amounts and benefits shall
be hereinafter referred to as the "Other Benefits").

                  (b) Death. If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Compensation and the timely payment or provision of Other Benefits. Accrued
Compensation shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect to other
peer executives and their beneficiaries at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                  (c) Disability. If the Executive's employment is terminated by
reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Compensation and the timely payment or provision of
Other Benefits. Accrued Compensation shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination. With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this Section
6(c) shall include, and the Executive shall be entitled after the Disability
Effective Date to receive, disability and other benefits at least equal to the
most favorable of those generally provided by the Company and its affiliated
companies to disabled executives and/or their families in accordance with such
plans, programs, practices and policies relating to disability, if any, as in
effect generally with

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respect to other peer executives and their families at any time during the
120-day period immediately preceding the Effective Date or, if more favorable to
the Executive and/or the Executive's family, as in effect at any time thereafter
generally with respect to other peer executives of the Company and its
affiliated companies and their families.

                  (d) Cause; Other than for Good Reason. If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (i) his Annual Base Salary through
the Date of Termination, and (ii) Other Benefits, in each case to the extent
theretofore unpaid. If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Compensation and the timely payment or provision of Other Benefits. In
such case, all Accrued Compensation shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.

         7. Nonexclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive's continuing or future participation in any plan, program,
policy or practice provided by the Company or any of its affiliated companies
and for which the Executive may qualify, including the SERP, Key Employee Stock
Purchase Plan, Deferred Health Care Credits and Deferred Directors Fee Plan, nor
shall anything herein limit or otherwise affect such rights as the Executive may
have under any contract or agreement with the Company or any of its affiliated
companies. Amounts which are vested benefits or which the Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any
contract or agreement with the Company or any of its affiliated companies at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly
modified by this Agreement.

         8. Full Settlement. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. The Executive shall not be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement.

         9. Confidential Information.

                  (a) Non-Disclosure. During Executive's employment or at any
time thereafter, irrespective of the time, manner or cause of the termination of
this Agreement, Executive will not directly or indirectly, reveal, divulge,
disclose or communicate to any person or entity other than authorized officers,
directors and executives of Employer, in any manner whatsoever, any Confidential
Information (as hereinafter defined) of Employer without the prior written
consent of the Employer, except in connection with the fulfillment of his duties
hereunder.

                  (b) Definition. As used herein, "Confidential Information"
means information disclosed to or known by Executive as a direct or indirect
consequence of or through his association with Employer and its subsidiaries and
affiliates, about Employer or any subsidiary

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or affiliate of Employer, their businesses, products and practices, including
but not limited to trade secrets, know-how, technical information, and financial
information, which information is not generally known in the business in which
Employer or any subsidiary of Employer is or may become engaged. However,
Confidential Information shall not include any information which is (i)
available to the public from a source other than Executive, (ii) released in
writing by Employer to the public or to persons who are not under a similar
obligation of confidentiality to Employer and who are not parties to this
Agreement, (iii) obtained by Executive from a third party not under a similar
obligation of confidentiality to Employer, or (iv) required to be disclosed by
any reporting requirements of NASDAQ, the SEC, court process or any other
government or agency or department of any government.

                  (c) Return of Property. Upon termination of Executive's
employment, Executive will surrender to Employer all Confidential Information,
including without limitation, all lists, charts, schedules, reports, financial
statements, books and records of Employer and all subsidiaries and affiliates of
Employer, and all copies thereof, and all other property belonging to Employer
and all subsidiaries and affiliates of Employer, provided that Executive shall
be accorded reasonable access to such materials subsequent thereto for any
proper purpose as determined in the reasonable judgment of Employer.

         10. Agreement Not to Solicit Employees. Executive agrees that, for a
period of one year following the termination of the employment, neither he nor
any affiliate shall, either alone or on behalf of any business, solicit or
induce, or in any manner attempt to solicit or induce, any person employed by,
or an agent of, Employer or any subsidiary of Employer to terminate his
employment or agency, as the case may be, with the Employer or such subsidiary
provided Executive further agrees that, for a period of one year following the
termination of employment, neither he nor any affiliate shall either act on
behalf of any business engaged in a business competitive with Employer or
subsidiary, solicit or induce in any manner or attempt to solicit or induce any
person hired by Executive as an employee of or agent of Employer or any
subsidiary of Employer to terminate his employment or agency as the case may be
with Employer or such subsidiary.

         11. Non-competition and Inventions.

                  (a) During the period of employment of Executive and for a
period of one year after Executive's termination of employment for any reason,
Executive shall not directly or indirectly as a principal, agent, owner,
employee, consultant, advisor, trustee, beneficiary, distributor, partner,
co-venturer, officer, director, stockholder or in any other capacity, nor will
any entity owned by Executive:

                           (i) divert or attempt to divert any business from the
Company or engage in any act likely to cause any customer or supplier of the
Company to discontinue or curtail its business with the Company or to do
business with another entity, firm, business, activity or enterprise directly or
indirectly competitive with the Company; or

                           (ii) contact, sell or solicit to sell or attempt to
contact, sell or solicit to sell products competitive to those sold by the
Company to any customer of the Company with which Executive had contact while
performing services for the Company; or

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                           (iii) compete with the Company and its subsidiaries
by selling any products or services in direct competition with the Company or
its subsidiaries anywhere in the world.

         Notwithstanding the provisions above, Executive may acquire securities
of any entity, the securities of which are publicly traded, provided that the
value of the securities of such entity held directly or indirectly by Executive
immediately following such acquisition is less than 5% of the total value of the
then outstanding class or type of securities acquired.

                  (b) Executive acknowledges and agrees that the restrictions
set forth in this Section 11 are founded on valuable consideration and are
reasonable in duration and geographic area in view of the circumstances under
which this Agreement is executed and that such restrictions are necessary to
protect the legitimate interests of the Company.

                  (c) Executive hereby sells, transfers and assigns to the
 Company the entire right, title and interest of the Executive in and to all
inventions, ideas, disclosures and improvements, whether patented or unpatented,
and copyrightable materials, made or conceived by the Executive, solely or
jointly, or in whole or in part, during the period Executive is bound by this
Agreement which (i) relate to methods, apparatus, designs, products, processes
or devices sold, leased, used or under construction or development by the
Company or any subsidiary or (ii)) otherwise relate to or pertain to the
business functions or operations of the Company or any subsidiary, or (iii))
arise (wholly or partly) from the efforts of the Executive during his term of
employment in connection with his performance of his duties hereunder. The
Executive shall communicate promptly and disclose to the Company, in such form
as the Company requests, all information, details and data pertaining to the
aforementioned inventions, ideas, disclosures and improvements; and, whether
during the term hereof or thereafter, the Executive shall execute and deliver to
the Company such formal transfers and assignments and such other papers and
documents as may be required of the Executive to permit the Company to file and
prosecute the patent applications and, as to copyrightable material, to obtain
copyright thereon. This provision does not relate to any invention for which (i)
no equipment, supplies, facilities or trade secret information of the Company
was used and which was developed entirely on the Executive's own time and which
does not relate (A) directly to the business of the Company, or (B) to the
Company's actual or demonstrably anticipated research or development; or (ii)
does not result from any work performed by the Executive for the Company.

                  (d) The provisions in this paragraph are a supplement to any
other confidentiality and non-compete provisions applicable to the Executive in
any other agreements.

         12. Successors.

                  (a) This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

                  (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

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<PAGE>

                  (c) The Company will require any successor (whether direct or
 indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

         13. Miscellaneous.

                  (a) This Agreement shall be governed by and construed in
 accordance with the laws of the State of Wisconsin, without reference to
principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement may not
be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

                  (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

If to the Executive:       Thomas J Price
                           18360 Lynette Lane
                           New Berlin, WI 53146

If to the Company:         THE OILGEAR COMPANY
                           2300 South 51st Street
                           Milwaukee, WI  53219

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

                  (c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                  (d) The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                  (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(vii) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                                      -11-
<PAGE>

         14. Arbitration. Any disputes arising under or in connection with this
Agreement, including, without limitation, those involving claims for specific
performance or other equitable relief, will be submitted to binding arbitration
in Milwaukee, Wisconsin before the Resolute Systems, but under the Commercial
Arbitration Rules of the American Arbitration Association under the authority of
federal and state arbitration statutes, and shall not be the subject of
litigation in any forum. If the Resolute Systems is unavailable to conduct the
arbitration, then it shall be before another arbitral body in Milwaukee,
Wisconsin selected by the parties or, if they cannot agree on another arbitral
body, the American Arbitration Association. EACH PARTY, BY SIGNING THIS
AGREEMENT, VOLUNTARILY, KNOWINGLY AND INTELLI-GENTLY WAIVES ANY RIGHTS SUCH
PARTY MAY OTHERWISE HAVE TO SEEK REMEDIES IN COURT OR OTHER FORUMS, INCLUDING
THE RIGHT TO JURY TRIAL. The arbitrator shall have full authority to order
specific performance or other equitable relief and award damages and other
relief available under this Agreement or applicable law. The decision of the
arbitrator will be final and binding, and judgment on the award by the
arbitrator may be entered in any court of competent jurisdiction. THIS
SUBMISSION AND AGREEMENT TO ARBITRATE WILL BE SPECIFICALLY ENFORCEABLE. If the
Executive is the prevailing party in any such arbitration or in any action to
enforce this Agreement, the Executive will be entitled to recover, in addition
to any other relief awarded by the arbitrator, all reasonable costs and
expenses, including fees and expenses of the arbitrator and attorneys, incurred
in connection therewith. If the Executive prevails on specific issues in the
arbitration, the arbitrator may allocate the costs incurred by the Executive on
a basis he deems appropriate.

         15. Construction. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement will be construed as
if drafted jointly by the parties and no presumption or burden of proof will
arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

                                                   /s/ Thomas J. Price
                                                 -------------------------------
                                                           [Executive]

                                                 THE OILGEAR COMPANY

                                                 By:  /s/ David A. Zuege
                                                    ----------------------------

                                      -12-Exhibit 10.12
                                                                   -------------

                                9,274,314 Shares

                             DENBURY RESOURCES INC.

                                  Common Stock

                             UNDERWRITING AGREEMENT
                             ----------------------

                                                                  March 22, 2004

LEHMAN BROTHERS INC.
745 Seventh Avenue
New York, NY 10019

Dear Sirs:

         Certain stockholders of Denbury Resources Inc., a Delaware corporation
(the "Company"), named in Schedule 2 hereto (the "Selling Stockholders"),
propose to sell to you, the underwriter named in Schedule 1 hereto (the
"Underwriter"), an aggregate of 9,274,314 shares (the "Stock") of the Company's
common stock, par value $.001 per share (the "Common Stock"). This is to confirm
the agreement concerning the purchase of the Stock from the Selling Stockholders
by the Underwriter.

         1. Representations, Warranties and Agreements of the Company. The
Company represents, warrants and agrees that:

          (a) A registration statement on Form S-3 (File No. 333-107676) with
     respect to the Stock has (i) been prepared by the Company in conformity
     with the requirements of the Securities Act of 1933, as amended (the
     "Securities Act"), and the rules and regulations (the "Rules and
     Regulations") of the Securities and Exchange Commission (the "Commission")
     thereunder, (ii) been filed with the Commission under the Securities Act
     and (iii) become effective under the Securities Act. Copies of such
     registration statement and amendments thereto have been delivered by the
     Company to you as the Underwriter. As used in this Agreement, "Effective
     Time" means the date and the time as of which such registration statement,
     or the most recent post-effective amendment thereto, if any, was declared
     effective by the Commission; "Effective Date" means the date of the
     Effective Time; "Preliminary Prospectus" means each prospectus included in
     such registration statement, or amendments thereto, before it became
     effective under the Securities Act and any prospectus filed with the
     Commission by the Company with the consent of the Underwriter pursuant to
     Rule 424(a) of the Rules and Regulations; "Registration Statement" means
     such registration statement, as amended at the Effective Time, including
     all information contained in the final prospectus filed with the Commission
     pursuant to Rule 424(b) of the Rules and Regulations and deemed to be a
     part of the registration statement as of the Effective Time pursuant to
     paragraph (b) of Rule 430A of the Rules and Regulations; and "Prospectus"
     means the prospectus supplement and the accompanying prospectus and all
     information incorporated by reference therein at such time, in the form
     first used to confirm sales of Stock. Reference made herein to any
     Preliminary Prospectus or to the Prospectus shall be deemed to refer to and
     include any documents incorporated by reference therein pursuant to item 12
     of Form S-3 under the Securities Act, as of the date of such Preliminary
     Prospectus or the Prospectus, as the case may be, and any reference to any
     amendment or supplement to any Preliminary Prospectus or the Prospectus
     shall be deemed to refer to and include any document filed under the
     Securities Exchange Act of 1934, as amended ("Exchange Act") after the date
     of such Preliminary Prospectus or the Prospectus, as the case may be, and
     incorporated by reference in the Preliminary Prospectus or the Prospectus,
     as the case may be; and any reference to any amendment to the Registration
     Statement shall be deemed to include any periodic report of the Company
     filed with the Commission pursuant to Section 13(a) or 15(d) of the
     Exchange Act after the Effective Time that is incorporated by reference in
     the Registration Statement. The Commission has not issued any order
     preventing or suspending the use of any Preliminary Prospectus.

          (b) The Registration Statement conforms, and the Prospectus and any
     further amendments or supplements to the Registration Statement or the
     Prospectus will, when they become effective or are filed with the
     Commission, as the case may be, conform in all material respects to the
     requirements of the Securities Act and the Rules and Regulations and do not
     and will not, as of the applicable Effective Date (as to the Registration
     Statement and any amendment thereto) and as of the applicable filing date
     (as to the Prospectus and any amendment or supplement thereto) contain an
     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; provided that no representation or warranty is made as to
     information contained in or omitted from the Registration Statement or the
     Prospectus in reliance upon and in conformity with written information
     furnished to the Company by or on behalf of the Underwriter specifically
     for inclusion therein.

          (c) The documents incorporated by reference in the Prospectus, when
     they were filed with the Commission, conformed in all material respects to
     the requirements of the Exchange Act and the Rules and Regulations, and
     none of such documents contained an untrue statement of material fact or
     omitted to state a material fact required to be stated therein or necessary
     to make the statements therein not misleading; and any further documents so
     filed and incorporated by reference in the Prospectus, when such documents
     are filed with the Commission, will conform in all material respects to the
     requirements of the Exchange Act and the rules and regulations thereunder
     and will not contain 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.

          (d) The Company and each of its subsidiaries (as defined in Section
     17) have been duly incorporated or formed, as the case may be, and are
     validly existing, as their respective business entities, and in good
     standing under the laws of their respective jurisdictions of incorporation
     or formation, as the case may be, are duly qualified to do business and are
     in good standing as foreign corporations or limited liability companies in
     each jurisdiction in which their respective ownership or lease of property
     or the conduct of their respective businesses requires such qualification
     (except where the failure to so qualify or be in good standing as a foreign
     corporation or limited liability company would not have a material adverse
     effect on the consolidated financial position, stockholders' or members'
     equity (as the case may be), results of operation, business or prospects of
     the Company and its subsidiaries, taken as a whole), and have all power and
     authority necessary to own or hold their respective properties and to
     conduct the businesses in which they are engaged; and none of the
     subsidiaries of the Company other than Denbury Offshore, Inc., Denbury
     Onshore, LLC and D enbury Operating Company is a "significant subsidiary",
     as such term is defined in Rule 405 of the Rules and Regulations under the
     Securities Act.

          (e) The Company has an authorized capitalization as set forth in the
     Prospectus, and all of the issued shares of capital stock of the Company
     have been duly and validly authorized and issued, are fully paid and
     non-assessable and conform to the description thereof contained in the
     Prospectus; and all of the issued shares of capital stock of each
     subsidiary of the Company have been duly and validly authorized and issued
     and are fully paid and non-assessable and (except for directors' qualifying
     shares) are owned directly or indirectly by the Company, free and clear of
     all liens, encumbrances, equities or claims except as disclosed in the
     Prospectus.

          (f) The shares of Stock to be sold by the Selling Stockholders to the
     Underwriter hereunder have been duly and validly authorized.

          (g) This Agreement has been duly authorized, executed and delivered by
     the Company.

          (h) The execution, delivery and performance of this Agreement by the
     Company and the consummation of the transactions contemplated hereby will
     not conflict with or result in a breach or violation of any of the terms or
     provisions of, or constitute a default under, any indenture, mortgage, deed
     of trust, loan agreement or other agreement or instrument, which violation,
     breach or conflict would have a material adverse effect on the consolidated
     financial position, stockholders' or members' equity (as the case may be),
     results of operation, business or prospects of the Company and its
     subsidiaries, taken as a whole, to which the Company or any of its
     subsidiaries is a party or by which the Company or any of its subsidiaries
     is bound or to which any of the property or assets of the Company or any of
     its subsidiaries is subject, nor will such actions result in any violation
     of the provisions of the charter or by-laws of the Company or any of its
     subsidiaries or any statute or any order, rule or regulation of any court
     or governmental agency or body having jurisdiction over the Company or any
     of its subsidiaries or any of their properties or assets; and except for
     the registration of the Stock under the Securities Act and such consents,
     approvals, authorizations, registrations or qualifications as may be
     required under the Exchange Act and applicable state securities laws in
     connection with the purchase and distribution of the Stock by the
     Underwriter, no consent, approval, authorization or order of, or filing or
     registration with, any such court or governmental agency or body is
     required for the execution, delivery and performance of this Agreement by
     the Company and the consummation of the transactions contemplated hereby
     other than those that have been obtained.

          (i) Except as described in the Prospectus, there are no contracts,
     agreements or understandings between the Company and any person granting
     such person the right (other than rights which have been waived or
     satisfied) to require the Company to file a registration statement under
     the Securities Act with respect to any securities of the Company owned or
     to be owned by such person or to require the Company to include such
     securities in the securities registered pursuant to the Registration
     Statement or in any securities being registered pursuant to any other
     registration statement filed by the Company under the Securities Act.

          (j) Except as set forth in the Prospectus, the Company has not sold or
     issued any shares of Common Stock during the six-month period preceding the
     date of the Prospectus, including any sales pursuant to Rule 144A under, or
     Regulations D or S of, the Securities Act other than shares issued pursuant
     to director compensation plans, employee benefit plans, qualified stock
     options plans or other employee compensation plans or pursuant to
     outstanding options, rights or warrants.

          (k) Neither the Company nor any of its subsidiaries has sustained,
     since the date of the latest audited financial statements included in the
     Prospectus, any material loss or interference with its business from fire,
     explosion, flood or other calamity, whether or not covered by insurance, or
     from any labor dispute or court or governmental action, order or decree,
     otherwise than as set forth or contemplated in the Prospectus, and, since
     such date, there has not been any change in the capital stock (except for
     exercises of options since such date under the Company's existing director
     compensation plans, existing stock option plan and issuances of stock
     under, and the purchase of Company stock for, the Company's existing stock
     purchase plan) or long-term debt of the Company or any of its subsidiaries
     or any material adverse change, or any development involving a prospective
     material adverse change, in or affecting the management, financial
     position, stockholders' equity or results of operations, business or
     prospects of the Company and its subsidiaries, taken as a whole, otherwise
     than as set forth or contemplated in the Prospectus.

          (l) The financial statements (including the related notes and
     supporting schedules), filed as part of the Registration Statement or
     included in the Prospectus present fairly the financial condition and
     results of operations of the entities purported to be shown thereby, at the
     dates and for the periods indicated, and have been prepared in conformity
     with generally accepted accounting principles applied on a consistent basis
     throughout the periods involved.

          (m) Deloitte & Touche L.L.P., who have certified certain financial
     statements of the Company, whose reports appear in the Prospectus and who
     will deliver the letter referred to in Section 9(g) hereof, are and have
     been independent public accountants as required by the Securities Act and
     the Rules and Regulations, during the periods covered by the financial
     statements on which they reported.

          (n) DeGolyer and MacNaughton, whose reserve audits or evaluations are
     referenced or appear, as the case may be, in the Prospectus and who will
     deliver the letter referred to in Section 9(h) hereof, were, as of December
     31, 2002 and December 31, 2003, and are, as of the date hereof, independent
     engineers with respect to the Company and its subsidiaries.

          (o) The Company and each of its subsidiaries has (1) generally
     satisfactory or good and indefeasible title to all its interests in its oil
     and gas properties, title investigations having been carried out by or on
     behalf of such person in accordance with good practice in the oil and gas
     industry in the areas in which such properties are located, (2) good and
     marketable title in fee simple to all of its other real property, and (3)
     good and marketable title to all personal property owned by it, in each
     case free and clear of all liens, encumbrances and defects except such as
     are described in the Prospectus or such as do not materially affect the
     value of such properties as a whole and do not materially interfere with
     the use made and proposed to be made of such properties as a whole by the
     Company and its subsidiaries; and all real properties and buildings held
     under lease by the Company and its subsidiaries are held by them under
     valid, subsisting and enforceable leases, with such exceptions as are not
     material and do not interfere with the use made and proposed to be made of
     such properties and buildings as a whole by the Company and its
     subsidiaries.

          (p) The Company and its subsidiaries carry, or are covered by,
     insurance in such amounts and covering such risks as the Company reasonably
     believes is adequate for the conduct of their respective businesses and the
     value of their respective properties and is customary for companies engaged
     in similar businesses in similar industries.

          (q) The Company and its subsidiaries own or possess adequate rights to
     use all material patents, patent applications, trademarks, service marks,
     trade names, trademark registrations, service mark registrations,
     copyrights and licenses necessary for the conduct of their respective
     businesses and have no reason to believe that the conduct of their
     respective businesses will conflict with, and have not received any notice
     of any claim of conflict with, any such rights of others.

          (r) Except as described in the Prospectus, there are no legal or
     governmental proceedings pending to which the Company or any of its
     subsidiaries is a party or of which any property or assets of the Company
     or any of its subsidiaries is the subject which, if determined adversely to
     the Company or any of its subsidiaries, would be reasonably expected to
     have a material adverse effect on the consolidated financial position,
     stockholders' equity, results of operations, business or prospects of the
     Company and its subsidiaries, taken as a whole; and, to the best of the
     Company's knowledge, no such proceedings are threatened or contemplated by
     governmental authorities or threatened by others.

          (s) The conditions for use of Form S-3, as set forth in the General
     Instructions thereto, have been satisfied.

          (t) There are no contracts or other documents which are required to be
     described in the Prospectus or filed as exhibits to the Registration
     Statement by the Securities Act or by the Rules and Regulations which have
     not been described in the Prospectus or filed as exhibits to the
     Registration Statement or incorporated therein by reference as permitted by
     the Rules and Regulations.

          (u) No relationship, direct or indirect, exists between or among the
     Company on the one hand, and the directors, officers, stockholders,
     customers or suppliers of the Company on the other hand, which is required
     to be described in the Prospectus which is not so described.

          (v) No labor disturbance by the employees of the Company exists or, to
     the knowledge of the Company, is imminent which might be reasonably
     expected to have a material adverse effect on the management, consolidated
     financial position, stockholders' equity, results of operations, business
     or prospects of the Company and its subsidiaries, taken as a whole.

          (w) The Company is in compliance in all material respects with all
     presently applicable provisions of the Employee Retirement Income Security
     Act of 1974, as amended, including the regulations and published
     interpretations thereunder ("ERISA"); no "reportable event" (as defined in
     ERISA) has occurred with respect to any "pension plan" (as defined in
     ERISA) for which the Company would have any material liability; the Company
     has not incurred and does not expect to incur any material liability under
     (i) Title IV of ERISA with respect to termination of, or withdrawal from,
     any "pension plan" or (ii) Section 412 or 4971 of the Internal Revenue Code
     of 1986, as amended, including the regulations and published
     interpretations thereunder (the "Code"); and each "pension plan" for which
     the Company would have any material liability that is intended to be
     qualified under Section 401(a) of the Code is so qualified in all material
     respects and, to the best of the Company's knowledge, nothing has occurred,
     whether by action or by failure to act, which would cause the loss of such
     qualification.

          (x) The Company and its subsidiaries have filed all federal, state and
     local income and franchise tax returns required to be filed through the
     date hereof or have filed for appropriate extensions for such taxes and
     have paid all taxes due thereon, and no tax deficiency has been determined
     adversely to the Company or any of its subsidiaries which has had (nor does
     the Company have any knowledge of any tax deficiency which, if determined
     adversely to the Company or any of its subsidiaries, might have) a material
     adverse effect on the consolidated financial position, stockholders'
     equity, results of operations, business or prospects of the Company and its
     subsidiaries, taken as a whole.

          (y) Since the date as of which information is given in the Prospectus
     through the date hereof, and except as may otherwise be disclosed in the
     Prospectus, the Company has not (i) except for exercises of options since
     such date under the Company's existing director compensation plans or
     existing stock option plan and issuances of stock under the Company's
     existing stock purchase plan, issued or granted any securities, (ii)
     incurred any liability or obligation, direct or contingent, other than
     liabilities and obligations which were incurred in the ordinary course of
     business, (iii) entered into any transaction not in the ordinary course of
     business or (iv) declared or paid any dividend on its capital stock.

          (z) The Company (i) makes and keeps accurate books and records and
     (ii) maintains internal accounting controls which provide reasonable
     assurance that (A) transactions are executed in accordance with
     management's authorization, (B) transactions are recorded as necessary to
     permit preparation of its financial statements and to maintain
     accountability for its assets, (C) access to its assets is permitted only
     in accordance with management's authorization and (D) the reported
     accountability for its assets is compared with existing assets at
     reasonable intervals.

          (aa) Neither the Company nor any of its subsidiaries (i) is in
     violation of its charter or by-laws, (ii) is in default in any respect, and
     no event has occurred which, with notice or lapse of time or both, would
     constitute such a default, in the due performance or observance of any
     term, covenant or condition contained in any indenture, mortgage, deed of
     trust, loan agreement or other agreement or instrument to which it is a
     party or by which it is bound or to which any of its properties or assets
     is subject or (iii) is in violation in any respect of any law, ordinance,
     governmental rule, regulation or court decree to which it or its property
     or assets may be subject or has failed to obtain any license, permit,
     certificate, franchise or other governmental authorization or permit
     necessary to the ownership of its property or to the conduct of its
     business, except, in the cases of clauses (ii) and (iii), such defaults,
     events, violations or failures that in the aggregate might reasonably be
     expected to have a material adverse effect on the management, consolidated
     financial position, stockholders' equity, results of operations, business
     or prospects of the Company and its subsidiaries, taken as a whole.

          (bb) The course of conduct of the Company in transactions between the
     Company and its subsidiaries on one hand, and Genesis Partners, L.P. (the
     "Partnership") and its subsidiaries on the other hand, since the
     acquisition by the Company of Genesis Energy LLC, the general partner of
     the Partnership, has at all times been "fair and reasonable" to the
     Partnership, as determined within the context of Section 7.9 of the limited
     partnership agreement of the Partnership.

          (cc) There has been no storage, disposal, generation, manufacture,
     refinement, transportation, handling or treatment of toxic wastes, medical
     wastes, hazardous wastes or hazardous substances by the Company or any of
     its subsidiaries (or, to the knowledge of the Company, any of their
     predecessors in interest) at, upon or from any of the property now or
     previously owned or leased by the Company or its subsidiaries in violation
     of any applicable law, ordinance, rule, regulation, order, judgment, decree
     or permit or which would require remedial action under any applicable law,
     ordinance, rule, regulation, order, judgment, decree or permit, except for
     any violation or remedial action which would not have, or could not be
     reasonably likely to have, singularly or in the aggregate with all such
     violations and remedial actions, a material adverse effect on the
     management, consolidated financial position, stockholders' equity, results
     of operations, business or prospects of the Company and its subsidiaries,
     taken as whole; there has been no material spill, discharge, leak,
     emission, injection, escape, dumping or release of any kind onto such
     property or into the environment surrounding such property of any toxic
     wastes, medical wastes, solid wastes, hazardous wastes or hazardous
     substances due to or caused by the Company or any of its subsidiaries or
     with respect to which the Company or any of its subsidiaries have
     knowledge, except for any such spill, discharge, leak, emission, injection,
     escape, dumping or release which would not have or would not be reasonably
     likely to have, singularly or in the aggregate with all such spills,
     discharges, leaks, emissions, injections, escapes, dumpings and releases, a
     material adverse effect on the management, consolidated financial position,
     stockholders' equity, results of operations, business or prospects of the
     Company and its subsidiaries, taken as a whole; and the terms "hazardous
     wastes", "toxic wastes", "hazardous substances" and "medical wastes" shall
     have the meanings specified in any applicable local, state, federal and
     foreign laws or regulations with respect to environmental protection
     ("Environmental Laws").

          (dd) Neither the Company nor any subsidiary is an "investment company"
     as defined in the Investment Company Act of 1940, as amended.

          (ee) Except as described in the Prospectus, no subsidiary of the
     Company is currently prohibited, directly or indirectly, from paying any
     dividends to the Company, from making any other distribution on such
     subsidiary's capital stock, from repaying to the Company any loans or
     advances to such subsidiary from the Company or from transferring any of
     such subsidiary's property or assets to the Company or any other subsidiary
     of the Company, except that assets may not be transferred to Genesis
     Energy, Inc.

          (ff) The Company and its subsidiaries possess all licenses,
     certificates, permits and other authorizations issued by the appropriate
     federal, state or foreign regulatory authorities ("Permit" or "Permits")
     necessary for the ownership of property or assets or to conduct their
     respective businesses except where the failure to have such Permits would
     not reasonably be expected to have a material adverse effect on the
     management, consolidated financial position, stockholders' equity, results
     of operations, business or prospects of the Company and its subsidiaries,
     taken as a whole; neither the Company nor any of its subsidiaries has
     received any notice of proceedings relating to the revocation or
     modification of any such Permit which, singly or in the aggregate, if the
     subject of an unfavorable decision, ruling or finding, would have a
     material adverse effect on the management, consolidated financial position,
     stockholders' equity, results of operations, business or prospects of the
     Company and its subsidiaries, taken as a whole; the Company and each of its
     subsidiaries has operated and is operating its business in compliance with
     and not in violation of any of its obligations with respect to each such
     Permit except where such violation would not reasonably be expected to have
     a material adverse effect on the management, consolidated financial
     position, stockholders' equity, results of operations, business or
     prospects of the Company and its subsidiaries, taken as a whole; no event
     has occurred which allows, or after notice or lapse of time or both would
     allow, revocation or termination of any such Permit or result in any other
     impairment of the rights of the Company or any of its subsidiaries under
     any such Permit, subject in each case to such qualification as described in
     the Prospectus; and, except as described in the Prospectus, such permits
     contain no restrictions that are burdensome to the Company or any of its
     subsidiaries except for restrictions that would not, singly or in the
     aggregate, have a material adverse effect on the management, consolidated
     financial position, stockholders' equity, results of operations, business
     or prospects of the Company and its subsidiaries, taken as a whole.

          (gg) The principal executive officer and principal financial officer
     of the Company have made all certifications required by the Sarbanes-Oxley
     Act or any related rules and regulations promulgated by the Commission, and
     the statements contained in any such certification are complete and
     correct. The Company maintains "disclosure controls and procedures" (as
     defined in Rule 13a-14(c) under the Exchange Act), and such controls and
     procedures are designed (i) to ensure that information required to be
     disclosed by the Company in the reports that it files or submits under the
     Exchange Act is recorded, processed, summarized and reported, within the
     time periods specified in the Commission's rules and forms and (ii) to
     ensure that information required to be disclosed by the Company in the
     reports that it files or submits under the Exchange Act is accumulated and
     communicated to the Company's management, including its principal executive
     officer and principal financial officer, as appropriate to allow timely
     decisions regarding required disclosure. The Company does not have any
     material weaknesses in internal controls, and there has been no fraud,
     whether or not material, that involves management or other employees who
     have a significant role in the Company's internal controls. The Company is
     otherwise in compliance in all material respects with all applicable
     effective provisions of the Sarbanes-Oxley Act and the rules and
     regulations promulgated by the Commission (and intends to comply with all
     applicable provisions that are not yet effective upon effectiveness).

         Any certificate signed by any officer of the Company and delivered to
the Underwriter or counsel for the Underwriter in connection with the offering
of the Stock shall be deemed a representation and warranty by the Company, as to
matters covered thereby, to the Underwriter.

         2. Representations, Warranties and Agreements of the Selling
Stockholders. Each Selling Stockholder severally, and not jointly, represents,
warrants and agrees that:

          (a) The Selling Stockholder has, and immediately prior to the Delivery
     Date (as defined in Section 5 hereof) the Selling Stockholder will have,
     good and valid title to the shares of Stock to be sold by the Selling
     Stockholder hereunder on such date, free and clear of all liens,
     encumbrances, equities or claims; and upon delivery of such shares and
     payment therefor pursuant hereto and thereto (and assuming that the
     Underwriter acquires the shares of Stock without any notice of any adverse
     claim (within the meaning of Section 8-105 of the Uniform Commercial Code)
     that has been created by the Underwriter or its Affiliates) good and valid
     title to such shares, free and clear of all liens, encumbrances, equities
     or claims, will pass to the Underwriter.

          (b) The Selling Stockholder has full right, partnership power and
     authority to enter into this Agreement; the execution, delivery and
     performance of this Agreement by the Selling Stockholder and the
     consummation by the Selling Stockholder of the transactions contemplated
     hereby will not conflict with or result in a breach or violation of any of
     the terms or provisions of, or constitute a default under, any material
     indenture, mortgage, deed of trust, loan agreement or other agreement or
     instrument to which the Selling Stockholder is a party or by which the
     Selling Stockholder is bound or to which any of the property or assets of
     the Selling Stockholder is subject, nor will such actions result in any
     violation of the provisions of the certificate of limited partnership or
     the partnership agreement of the Selling Stockholder, or any statute or any
     order, rule or regulation of any court or governmental agency or body
     having jurisdiction over the Selling Stockholder or the property or assets
     of the Selling Stockholder; and, except for the registration of the Stock
     under the Securities Act and such consents, approvals, authorizations,
     registrations, filings or qualifications as may be required under the
     Exchange Act and applicable state securities laws in connection with the
     purchase and distribution of the Stock by the Underwriter, no consent,
     approval, authorization or order of, or filing or registration with, any
     such court or governmental agency or body is required for the execution,
     delivery and performance of this Agreement by the Selling Stockholder and
     the consummation by the Selling Stockholder of the transactions
     contemplated hereby and thereby.

          (c) The Registration Statement and the Prospectus and any further
     amendments or supplements to the Registration Statement or the Prospectus,
     when they become effective or are filed with the Commission, as the case
     may be, do not and will not, as of the applicable Effective Date (as to the
     Registration Statement and any amendment thereto) and as of the applicable
     filing date (as to the Prospectus and any amendment or supplement thereto)
     contain an 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; provided, however, the foregoing representations
     and warranties shall only apply to statements or omissions in the
     Registration Statement or the Prospectus made in reliance upon and in
     conformity with information relating to such Selling Stockholder furnished
     to the Company in writing by such Selling Stockholder expressly for use
     therein; and provided, further, that no representation or warranty is made
     as to information contained in or omitted from the Registration Statement
     or the Prospectus in reliance upon and in conformity with written
     information furnished to the Company by or on behalf of the Underwriter
     specifically for inclusion therein.

          (d) The Selling Stockholder has not taken and will not take, directly
     or indirectly, any action which is designed to or which has constituted or
     which might reasonably be expected to cause or result in the stabilization
     or manipulation of the price of any security of the Company to facilitate
     the sale or resale of the shares of the Stock.

          (e) The number of shares of Stock beneficially owned by the Selling
     Stockholders is not materially greater than the number set forth on
     Schedule 2.

         3. Purchase of the Stock by the Underwriter. On the basis of the
representations and warranties contained in, and subject to the terms and
conditions of, this Agreement, each Selling Stockholder hereby agrees to sell
the number of shares of the Stock set opposite its name in Schedule 2 hereto,
severally and not jointly, to the Underwriter and the Underwriter agrees to
purchase the number of shares of the Stock set opposite the Underwriter's name
in Schedule 1 hereto. The price of the Stock shall be $15.02 per share.

         The Selling Stockholders shall not be obligated to deliver any of the
Stock to be delivered on the Delivery Date except upon payment for all the Stock
to be purchased on the Delivery Date as provided herein.

         4. Offering of Stock by the Underwriter. Upon authorization by the
Underwriter of the release of the Stock, the Underwriter proposes to offer the
Stock for sale upon the terms and conditions set forth in the Prospectus.

         5. Delivery of and Payment for the Stock. Delivery of and payment for
the Stock shall be made at the office of Andrews Kurth LLP, 600 Travis, Suite
4200, Houston, Texas 77002, at 9:00 A.M., Houston, Texas time, on the fourth
full business day following the date of this Agreement or at such other date or
place as shall be determined by agreement between the Underwriter, the Selling
Stockholders and the Company. This date and time are sometimes referred to
herein as the "Delivery Date." On the Delivery Date, the Selling Stockholders
shall deliver or cause to be delivered certificates representing the Stock to
the Underwriter for the account of the Underwriter against payment to or upon
the order of the Selling Stockholders of the purchase price by wire transfer in
immediately available funds. Time shall be of the essence, and delivery at the
time and place specified pursuant to this Agreement is a further condition of
the obligation of the Underwriter hereunder. Upon delivery, the Stock shall be
registered in such names and in such denominations as the Underwriter shall
request in writing not less than two full business days prior to the Delivery
Date. For the purpose of expediting the checking and packaging of the
certificates for the Stock, the Selling Stockholders shall, or shall cause a
custodian to, make the certificates representing the Stock available for
inspection by the Underwriter in New York, New York, not later than 2:00 P.M.,
New York City time, on the business day prior to the Delivery Date.

         6. Further Agreements of the Company. The Company agrees:

          (a) To prepare the Prospectus in a form approved by the Underwriter
     and to file the Prospectus pursuant to Rule 424(b) under the Securities Act
     not later than the Commission's close of business on the second business
     day following the execution and delivery of this Agreement or, if
     applicable, such earlier time as may be required by Rule 430A(a)(3) under
     the Securities Act; to make no further amendment or any supplement to the
     Registration Statement or to the Prospectus except as permitted herein; to
     advise the Underwriter, promptly after it receives notice thereof, of the
     time when any amendment to the Registration Statement has been filed or
     becomes effective or any supplement to the Prospectus or any amended
     Prospectus has been filed and to furnish the Underwriter with copies
     thereof; to advise the Underwriter, promptly after it receives notice
     thereof, of the issuance by the Commission of any stop order or of any
     order preventing or suspending the use of any Preliminary Prospectus or the
     Prospectus, of the suspension of the qualification of the Stock for
     offering or sale in any jurisdiction, of the initiation or threatening of
     any proceeding for any such purpose, or of any request by the Commission
     for the amending or supplementing of the Registration Statement or the
     Prospectus or for additional information; and, in the event of the issuance
     of any stop order or of any order preventing or suspending the use of any
     Preliminary Prospectus or the Prospectus or suspending any such
     qualification, to use promptly its best efforts to obtain its withdrawal;

          (b) To furnish promptly to the Underwriter and to counsel for the
     Underwriter a signed copy of the Registration Statement as originally filed
     with the Commission, and each amendment thereto filed with the Commission,
     including all consents and exhibits filed therewith;

          (c) To deliver promptly to the Underwriter such number of the
     following documents as the Underwriter shall reasonably request: (i)
     conformed copies of the Registration Statement as originally filed with the
     Commission and each amendment thereto (in each case excluding exhibits)
     and, (ii) each Preliminary Prospectus, the Prospectus and any amended or
     supplemented Prospectus; and, if the delivery of a prospectus is required
     at any time after the Effective Time in connection with the offering or
     sale of the Stock or any other securities relating thereto and if at such
     time any events shall have occurred as a result of which the Prospectus as
     then amended or supplemented would include an untrue statement of a
     material fact or omit to state any material fact necessary in order to make
     the statements therein, in the light of the circumstances under which they
     were made when such Prospectus is delivered, not misleading, or, if for any
     other reason it shall be necessary to amend or supplement the Prospectus or
     to file under the Exchange Act any document incorporated by reference in
     the Prospectus in order to comply with the Securities Act or the Exchange
     Act, to notify the Underwriter and, upon its request, to file such document
     and to prepare and furnish without charge to the Underwriter and to any
     dealer in securities as many copies as the Underwriter may from time to
     time reasonably request of an amended or supplemented Prospectus which will
     correct such statement or omission or effect such compliance;

          (d) To file promptly with the Commission any amendment to the
     Registration Statement or the Prospectus or any supplement to the
     Prospectus that may, in the judgment of the Company or the Underwriter, be
     required by the Securities Act or requested by the Commission;

          (e) Prior to filing with the Commission any amendment to the
     Registration Statement or supplement to the Prospectus, any document
     incorporated by reference in the Prospectus or any prospectus pursuant to
     Rule 424 of the Rules and Regulations, to furnish a copy thereof to the
     Underwriter and counsel for the Underwriter and obtain the consent of the
     Underwriter to the filing; provided, that the foregoing restriction shall
     not preclude the Company from (x) filing without the consent of the
     Underwriter any document required to be filed under the Exchange Act or (y)
     after the period set forth in Section 6(i) of this Agreement, amending the
     Registration Statement or filing a prospectus;

          (f) As soon as practicable after the Effective Date, to make generally
     available to the Company's security holders and to deliver to the
     Underwriter an earnings statement of the Company and its subsidiaries
     (which need not be audited) complying with Section 11(a) of the Securities
     Act and the Rules and Regulations (including, at the option of the Company,
     Rule 158);

          (g) For a period of three years following the Effective Date, to
     furnish to the Underwriter copies all materials furnished by the Company to
     its stockholders and all public reports and all reports and financial
     statements furnished by the Company to the principal national securities
     exchange upon which the Common Stock may be listed pursuant to requirements
     of or agreements with such exchange or to the Commission pursuant to the
     Exchange Act or any rule or regulation of the Commission thereunder;
     provided however that the Company shall not be required to provide the
     Underwriter with any such reports, registration statements or similar forms
     that have been filed with the Commission by electronic transmission
     pursuant to EDGAR;

          (h) Promptly from time to time to take such action as the Underwriter
     may reasonably request to qualify the Stock for offering and sale under the
     securities laws of such jurisdictions as the Underwriter may request and to
     comply with such laws so as to permit the continuance of sales and dealings
     therein in such jurisdictions for as long as may be necessary to complete
     the distribution of the Stock; provided that in connection therewith the
     Company shall not be required to qualify as a foreign corporation or to
     file a general consent to service of process in any jurisdiction;

          (i) Prior to the Effective Date, to apply, to the extent necessary,
     for the listing of the Stock on the New York Stock Exchange and to use its
     best efforts to complete that listing, subject only to official notice of
     issuance, prior to the Delivery Date;

          (j) To take such steps as shall be necessary to ensure that neither
     the Company nor any subsidiary shall become an "investment company" within
     the meaning of such term under the Investment Company Act of 1940 and the
     rules and regulations of the Commission thereunder; and

          (k) To not directly or indirectly take any action designed to or which
     has constituted or which might reasonably be expected to cause or result
     in, under the Exchange Act or otherwise, stabilization or manipulation of
     the price of any security of the Company to facilitate the sale or resale
     of the Stock.

         7. Further Agreements of the Selling Stockholders. Each Selling
Stockholder, severally and not jointly, agrees:

          (a) That the Stock to be sold by the Selling Stockholder hereunder is
     subject to the interest of the Underwriter and the other Selling
     Stockholders hereunder, and that the Selling Stockholders shall not,
     directly or indirectly, take any action that may terminate its obligations
     hereunder (other than the termination of this Agreement); and

          (b) To deliver to the Underwriter on or prior to the Delivery Date a
     properly completed and executed United States Treasury Department Form W-9.

         8. Expenses. The Company agrees to pay (a) the costs incident to the
authorization, issuance, sale and delivery of the Stock and any taxes payable in
that connection; (b) the costs incident to the preparation, printing and filing
under the Securities Act of the Registration Statement and any amendments and
exhibits thereto; (c) the costs of distributing the Registration Statement as
originally filed and each amendment thereto and any post-effective amendments
thereof (including, in each case, exhibits), any Preliminary Prospectus, the
Prospectus and any amendment or supplement to the Prospectus, all as provided in
this Agreement; (d) the costs of producing and distributing this Agreement and
any other related documents in connection with the offering, purchase, sale and
delivery of the Stock; (e) the filing fees incident to securing any required
review by the NASD of the terms of sale of the Stock; (f) any applicable listing
or other fees; (g) all other costs and expenses incident to the performance of
the obligations of the Company and the Selling Stockholders under this Agreement
except that the discount to the Underwriter for the purchase of the Stock shall
be borne by the Selling Stockholders; provided that, except as provided in this
Section 8 and in Section 13 below the Underwriter shall pay its own costs and
expenses, including the costs and expenses of its counsel, any transfer taxes on
the Stock which they may sell and the expenses of advertising any offering of
the Stock made by the Underwriter, and, as between the Underwriter and the
Selling Stockholders only, each of the Selling Stockholders shall pay the fees
and expenses of his or its counsel, any custodian (and any other
attorney-in-fact), and any transfer taxes payable in connection with his or its
respective sales of Stock to the Underwriter; and provided further, that the
provisions of this Section 8 shall not affect any agreement that the Company and
any Selling Stockholder may have entered into, or may hereafter enter into, with
respect to the sharing or reimbursement of any of the foregoing costs and
expenses.

         9. Conditions of Underwriter's Obligations. The respective obligations
of the Underwriter hereunder are subject to the accuracy, when made and on the
Delivery Date, of the representations and warranties of the Company and the
Selling Stockholders contained herein, to the performance by the Company and the
Selling Stockholders of their respective obligations hereunder, and to each of
the following additional terms and conditions:

          (a) The Prospectus shall have been timely filed with the Commission in
     accordance with Section 6(a) above; no stop order suspending the
     effectiveness of the Registration Statement or any part thereof shall have
     been issued and no proceeding for that purpose shall have been initiated or
     threatened by the Commission; and any request of the Commission for
     inclusion of additional information in the Registration Statement or the
     Prospectus or otherwise shall have been complied with.

          (b) No Underwriter shall have discovered and disclosed to the Company
     on or prior to the Delivery Date that the Registration Statement or the
     Prospectus or any amendment or supplement thereto contains an untrue
     statement of a fact which, in the opinion of Andrews Kurth LLP, counsel for
     the Underwriter, is material or omits to state a fact which, in the opinion
     of such counsel, is material and is required to be stated therein or is
     necessary to make the statements therein not misleading.

          (c) All corporate proceedings and other legal matters incident to the
     authorization, form and validity of this Agreement, the Stock, the
     Registration Statement and the Prospectus, and all other legal matters
     relating to this Agreement and the transactions contemplated hereby shall
     be reasonably satisfactory in all material respects to counsel for the
     Underwriter, and the Company and the Selling Stockholders shall have
     furnished to such counsel all documents and information that they may
     reasonably request to enable them to pass upon such matters.

          (d) Jenkens and Gilchrist, A Professional Corporation, shall have
     furnished to the Underwriter its written opinion, as counsel to the
     Company, addressed to the Underwriter and dated the Delivery Date, in form
     and substance reasonably satisfactory to the Underwriter, to the effect
     that:

               (i) The Company and each of its subsidiaries have been duly
          incorporated and are validly existing as corporations or limited
          liability companies, as the case may be, in good standing under the
          laws of their respective jurisdictions of incorporation or formation,
          are duly qualified to do business and are in good standing as foreign
          corporations or limited liability companies in each jurisdiction in
          which their respective ownership or lease of property or the conduct
          of their respective businesses requires such qualification, (other
          than where the failure to so qualify or be in good standing as a
          foreign corporation would not have a material adverse effect on the
          consolidated financial position, stockholders' equity, results of
          operation or business of the Company and its subsidiaries, taken as a
          whole), and have all power and authority necessary to own or hold
          their respective properties and conduct the businesses described in
          the Prospectus;

               (ii) The Company has an authorized capitalization as set forth in
          the Prospectus, and all of the issued shares of capital stock of the
          Company have been duly and validly authorized and issued, are fully
          paid and non-assessable and conform to the description thereof
          contained in the Prospectus; and all of the issued shares of capital
          stock (or the equivalent) of each subsidiary of the Company have been
          duly and validly authorized and issued and are fully paid,
          non-assessable and (except for any directors' qualifying shares) are
          owned directly or indirectly by the Company, free and clear of all
          liens, encumbIrances, equities or claims;

               (iii) The shares of the Stock being delivered on the Delivery
          Date to the Underwriter hereunder have been duly and validly
          authorized and validly issued and are fully paid and non-assessable;

               (iv) Except as described in the Prospectus, there are no
          preemptive or other rights to subscribe for or to purchase, nor any
          restriction upon the voting or transfer of, any shares of the Common
          Stock (including the Stock) pursuant to the Company's charter or
          by-laws or any agreement or other instrument filed as an exhibit to
          one of the Company's periodic reports under the Exchange Act;

               (v) To the best of such counsel's knowledge, there are no legal
          or governmental proceedings pending to which the Company or any of its
          subsidiaries is a party or of which any property or assets of the
          Company or any of its subsidiaries is the subject which, if determined
          adversely to the Company or any of its subsidiaries, might have a
          material adverse effect on the consolidated financial position,
          stockholders' equity, results of operations, business or prospects of
          the Company and its subsidiaries, taken as a whole; and, to the best
          of such counsel's knowledge, no such proceedings are threatened or
          contemplated by governmental authorities or threatened by others;

               (vi) The Registration Statement was declared effective under the
          Securities Act as of the date and time specified in such counsel's
          opinion, the Prospectus was filed with the Commission pursuant to the
          subparagraph of Rule 424(b) of the Rules and Regulations specified in
          such opinion on the date specified therein and no stop order
          suspending the effectiveness of the Registration Statement has been
          issued and, to the knowledge of such counsel, no proceeding for that
          purpose is pending or threatened by the Commission;

               (vii) The Registration Statement and the Prospectus and any
          further amendments or supplements thereto made by the Company prior to
          the Delivery Date (except for the financial statements and financial
          schedules and other financial and related reserve information included
          therein, as to which such counsel need express no belief) comply as to
          form in all material respects with the requirements of the Securities
          Act and the Rules and Regulations, and the documents incorporated by
          reference in the Prospectus when they where filed with the Commission
          (except for the financial statements and financial schedules and other
          financial and related reserve information included therein, as to
          which such counsel need express no belief) complied as to form in all
          material respects with the requirements of the Exchange Act and the
          Rules and Regulations;

               (viii) The statements contained in the Prospectus under the
          heading "Description of Capital Stock" insofar as such statements
          refer to statements of law, descriptions of statutes, rules or
          regulations or legal conclusions, are accurate and fair summaries of
          such statements of law, descriptions of statutes, rules or regulations
          or legal conclusions;

               (ix) To such counsel's knowledge, there are no contracts or other
          documents which are required to be described in the Prospectus or
          filed as exhibits to the Registration Statement by the Securities Act
          or by the Rules and Regulations which have not been described or filed
          as exhibits to the Registration Statement or incorporated therein by
          reference as permitted by the Rules and Regulations;

               (x) This Agreement has been duly authorized, executed and
          delivered by the Company;

               (xi) The compliance by the Company with all of the provisions of
          this Agreement and the consummation of the transactions contemplated
          hereby will not conflict with or result in a breach or violation of
          any of the terms or provisions of, or constitute a default under, any
          indenture, mortgage, deed of trust, loan agreement or other agreement
          or instrument known to such counsel to which the Company or any of its
          subsidiaries is a party or by which the Company or any of its
          subsidiaries is bound or to which any of the material property or
          assets of the Company or any of its subsidiaries is subject, nor will
          such actions result in any violation of the provisions of the charter
          or by-laws of the Company or any of its subsidiaries or any statute or
          any order, rule or regulation known to such counsel of any court or
          governmental agency or body having jurisdiction over the Company or
          any of its subsidiaries or any of their properties or assets; and,
          except for the registration of the Stock under the Securities Act and
          such consents, approvals, authorizations, registrations or
          qualifications as may be required under the Exchange Act and
          applicable state securities laws in connection with the purchase and
          distribution of the Stock by the Underwriter, no consent, approval,
          authorization or order of, or filing or registration with, any such
          court or governmental agency or body is required for the execution,
          delivery and performance of this Agreement by the Company and the
          consummation of the transactions contemplated hereby and thereby;

               (xii) To such counsel's knowledge, except as described or
          included in the Prospectus, there are no contracts, agreements or
          understandings between the Company and any person granting such person
          the right (other than rights which have been waived or satisfied) to
          require the Company to file a registration statement under the
          Securities Act with respect to any securities of the Company owned or
          to be owned by such person or to require the Company to include such
          securities in the securities registered pursuant to the Registration
          Statement or in any securities being registered pursuant to any other
          registration statement filed by the Company under the Securities Act;

               (xiii) Neither the Company nor any subsidiary is an "investment
          company" as defined in the Investment Company Act of 1940, as amended.

         In rendering such opinion, such counsel may state that (x) their
opinion is limited to matters governed by the Federal laws of the United States
of America, the laws of the State of Texas and the General Corporation Law of
the State of Delaware, and that such counsel is not admitted in Delaware and (y)
insofar as the foregoing opinions relate to the valid existence and good
standing of the Company and its subsidiaries, they are based solely on
certificates of authorities in the states of organization of the Company and
such subsidiaries that such counsel received in response to such counsel's
requests for confirmation of the existence and good standing of the Company and
such subsidiaries in such states, copies of which certificates have been
furnished to you, and, in rendering the opinion set forth in opinion (i) above
with respect to the qualification and the good standing as a foreign corporation
of the Company and such subsidiaries, such counsel has relied solely on
certificates such counsel received from the states necessary to give such
opinion that such counsel received in response to such counsel's requests for
confirmation of such qualification and good standing, as the case may be, of the
Company and such subsidiaries in such states, copies of which certificates have
been furnished to you.

         Such counsel shall also have furnished to the Underwriter a written
statement, addressed to the Underwriter and dated the Delivery Date, in form and
substance reasonably satisfactory to the Underwriter, to the effect that (x)
such counsel has acted as counsel to the Company in connection with the
preparation of the Registration Statement and (y) based on the foregoing, no
facts have come to the attention of such counsel which lead them to believe that
the Registration Statement (except for the financial statements and related
schedules and other financial data, and reserve information included therein, as
to which such counsel need express no belief) as of the Effective Date,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein not misleading, or that the Prospectus (except as stated above) contains
any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The foregoing opinion
and statement may be qualified by a statement to the effect that such counsel
does not assume any responsibility for the accuracy, completeness or fairness of
the statements contained in the Registration Statement or the Prospectus, except
for the statements made in the Prospectus under the caption "Description of
Capital Stock" insofar as such statements relate to the Stock and concern legal
matters.

          (e) Cleary, Gottlieb, Steen & Hamilton shall have furnished to the
     Underwriter its written opinion, as counsel to each of the Selling
     Stockholders, addressed to the Underwriter and dated the Delivery Date, in
     form and substance reasonably satisfactory to the Underwriter, to the
     effect that:

               (i) Each of the Selling Stockholders has been duly formed as a
          limited partnership under the Delaware Revised Uniform Limited
          Partnership Act, 6 Del. Sec. 17-101 et. seq. and is validly existing
          and in good standing under the laws of the State of Delaware.

               (ii) Each Selling Stockholder has the partnership power to enter
          into this Agreement and to perform its obligations thereunder;

               (iii) The execution, delivery and performance of this Agreement
          have been duly authorized by all necessary partnership action of each
          Selling Stockholder. The Underwriting Agreement has been duly executed
          and delivered by each Selling Stockholder;

               (iv) The execution and delivery by each Selling Stockholder of
          this Agreement and the performance of its obligations hereunder (a) do
          not require any consent, approval, authorization, registration or
          qualification of or with any governmental authority of the United
          States of America or the State of New York, except such as may be
          required under the Securities Act of 1933 and the Securities Exchange
          Act of 1934 (but without expressing an opinion as to any consent,
          approval, authorization, registration or qualification that may be
          required under state securities or Blue Sky laws), (b) do not result
          in a breach or violation of any of the terms and provisions of, or
          constitute a default under, any of the constituent documents of the
          Selling Stockholder and (c) do not violate the terms of any New York
          State or United States federal law or regulation of the Delaware
          Partnership Act (but without expressing any opinion with respect to
          United States federal securities laws or any state securities or Blue
          Sky laws).

               (v) Assuming the Underwriter acquires its interest in the Stock
          to be sold by the Selling Stockholders to the Underwriter without
          notice of any adverse claim (within the meaning of the Uniform
          Commercial Code as in effect in the State of New York (the "UCC")) and
          the Underwriter has paid the purchase price for such Stock and has had
          such Stock credited to the securities account of the Underwriter
          maintained with The Depository Trust Company, then the Underwriter
          will have a securities entitlement (as defined in Section 8-102(a)(17)
          of the UCC) to such Stock purchased by the Underwriter and no action
          based on an adverse claim to such Stock credited to such securities
          account, whether framed in conversion, replevin, constructive trust,
          equitable lien or other theory, may be asserted against the
          Underwriter.

         In rendering such opinion, such counsel may (x) limit the opinion in
section 9(e)(iv) above to those documents received by counsel set forth in an
exhibit to the opinion (which constituent documents shall be certified as true,
complete and correct copies by the Selling Stockholders or their affiliates) and
(y) state that its opinion is limited to matters governed by the Federal laws of
the United States of America and the laws of the State of New York, the Delaware
Revised Uniform Limited Partnership Act and the General Corporation Law of
Delaware and that such counsel is not admitted in Delaware.

          (f) The Underwriter shall have received from Andrews Kurth LLP,
     counsel for the Underwriter, such opinion or opinions, dated the Delivery
     Date, with respect to the issuance and sale of the Stock, the Registration
     Statement, the Prospectus and other related matters as the Underwriter may
     reasonably require, and the Company shall have furnished to such counsel
     such documents as they reasonably request for the purpose of enabling them
     to pass upon such matters.

          (g) At the Delivery Date, the Underwriter shall have received a letter
     from Deloitte & Touche LLP, in form and substance satisfactory to the
     Underwriter, addressed to the Underwriter and dated the date hereof (i)
     confirming that they are independent public accountants within the meaning
     of the Securities Act and are in compliance with the applicable
     requirements relating to the qualification of accountants under Rule 2-01
     of Regulation S-X of the Commission, (ii) stating, as of the date hereof
     (or, with respect to matters involving changes or developments since the
     respective dates as of which specified financial information is given in
     the Prospectus, as of a date not more than five days prior to the date
     hereof), the conclusions and findings of such firm with respect to the
     financial information and other matters ordinarily covered by accountants'
     "comfort letters" to underwriters in connection with registered public
     offerings.

          (h) At the Delivery Date, the Company shall have furnished to the
     Underwriter a letter from DeGolyer and MacNaughton addressed to the
     Underwriter and dated the date of the Delivery Date confirming that they
     are, and as of the date of their reports referred to in Section 1(n) hereof
     were, independent engineers with respect to the Company and stating, as of
     the date of such letter, that they have no knowledge of any fact or event
     that would cause any change to the conclusions and findings of such firm at
     the time made with respect to the information referred to in Section 1(n)
     hereof.

          (i) The Company shall have furnished to the Underwriter, addressed to
     the Underwriter, a certificate, dated the Delivery Date, of its chief
     executive officer and its chief financial officer stating that:

               (i) The representations, warranties and agreements of the Company
          in Section 1 hereof are true and correct as of the Delivery Date; the
          Company has complied with all its agreements contained herein; and the
          conditions set forth in Sections 9(a) and 9(k) hereof have been
          fulfilled; and

               (ii) They have carefully examined the Registration Statement and
          the Prospectus and, in their opinion (A) as of the Effective Date, the
          Registration Statement and Prospectus did not include any untrue
          statement of a material fact and did not omit to state a material fact
          required to be stated therein or necessary to make the statements
          therein not misleading, and (B) since the Effective Date no event has
          occurred which should have been set forth in a supplement or amendment
          to the Registration Statement or the Prospectus.

         (j) Each Selling Stockholder (or any custodian or one or more
attorneys-in-fact on behalf of each Selling Stockholder) shall have furnished to
the Underwriter on the Delivery Date a certificate, dated the Delivery Date,
signed by, or on behalf of, the Selling Stockholder (or any custodian or one or
more attorneys-in-fact) stating that the representations, warranties and
agreements of the Selling Stockholder contained herein are true and correct in
all material respects as of the Delivery Date and that the Selling Stockholder
has complied with all agreements contained herein to be performed by the Selling
Stockholder at or prior to the Delivery Date.

         (k) (i) Neither the Company nor any of its subsidiaries shall have
sustained since the date of the latest audited financial statements included in
the Prospectus any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set
forth or contemplated in the Prospectus or (ii) since such date there shall not
have been any change in the capital stock or long-term debt of the Company or
any of its subsidiaries or any change, or any development involving a
prospective change, in or affecting the general affairs, management, financial
position, stockholders' equity, prospects or results of operations of the
Company and its subsidiaries, otherwise than as set forth or contemplated in the
Prospectus, the effect of which, in any such case described in clause (i) or
(ii), is, in the judgment of the Underwriter, so material and adverse as to make
it impracticable or inadvisable to proceed with the public offering or the
delivery of the Stock being delivered on the Delivery Date on the terms and in
the manner contemplated in the Prospectus.

         (l) Subsequent to the execution and delivery of this Agreement there
shall not have occurred any of the following: (i) trading in securities
generally on the New York Stock Exchange or the American Stock Exchange or in
the over-the-counter market, or trading in any securities of the Company on any
exchange or in the over-the-counter market, shall have been suspended or minimum
prices shall have been established on any such exchange or such market by the
Commission, by such exchange or by any other regulatory body or governmental
authority having jurisdiction, (ii) a banking moratorium shall have been
declared by Federal or state authorities, (iii) the United States shall have
become engaged in hostilities, there shall have been an escalation in
hostilities involving the United States or there shall have been a declaration
of a national emergency or war by the United States or (iv) there shall have
occurred such a material adverse change in general economic, political or
financial conditions (or the effect of international conditions on the financial
markets in the United States shall be such) as to make it, in the judgment of
the Underwriter, impracticable or inadvisable to proceed with the public
offering or delivery of the Stock being delivered on the Delivery Date on the
terms and in the manner contemplated in the Prospectus.

         (m) To the extent required, the New York Stock Exchange shall have
approved the Stock for listing, subject only to official notice of issuance.

         All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Underwriter.

         10. Indemnification and Contribution.

          (a) The Company shall indemnify and hold harmless the Underwriter, its
     officers and employees and each person, if any, who controls the
     Underwriter within the meaning of the Securities Act, from and against any
     loss, claim, damage or liability, joint or several, or any action in
     respect thereof (including, but not limited to, any loss, claim, damage,
     liability or action relating to purchases and sales of Stock), to which the
     Underwriter, officer, employee or controlling person may become subject,
     under the Securities Act or otherwise, insofar as such loss, claim, damage,
     liability or action arises out of, or is based upon, (i) any untrue
     statement or alleged untrue statement of a material fact contained in (A)
     any Preliminary Prospectus, the Registration Statement or the Prospectus or
     in any amendment or supplement thereto or (B) in any materials or
     information provided to investors by, or with the approval of, the Company
     in connection with the marketing of the offering of the Stock ("Marketing
     Materials"), including any roadshow or investor presentations made to
     investors by the Company (whether in person or electronically); (ii) the
     omission or alleged omission to state in any Preliminary Prospectus, the
     Registration Statement or the Prospectus, or in any amendment or supplement
     thereto, or in any Marketing Materials any material fact required to be
     stated therein or necessary to make the statements therein not misleading;
     or (iii) any act or failure to act or any alleged act or failure to act by
     the Underwriter in connection with, or relating in any manner to, the Stock
     or the offering contemplated hereby, and which is included as part of or
     referred to in any loss, claim, damage, liability or action arising out of
     or based upon matters covered by clause (i) or (ii) above (provided that
     the Company shall not be liable under this clause (iii) to the extent that
     it is determined in a final judgment by a court of competent jurisdiction
     that such loss, claim, damage, liability or action resulted directly from
     any such acts or failures to act undertaken or omitted to be taken by the
     Underwriter through its gross negligence or willful misconduct), and shall
     reimburse the Underwriter and each such officer, employee or controlling
     person promptly upon demand for any legal or other expenses reasonably
     incurred by the Underwriter, officer, employee or controlling person in
     connection with investigating or defending or preparing to defend against
     any such loss, claim, damage, liability or action as such expenses are
     incurred; provided, however, that the Company shall not be liable in any
     such case to the extent that any such loss, claim, damage, liability or
     action arises out of, or is based upon, any untrue statement or alleged
     untrue statement or omission or alleged omission made in any Preliminary
     Prospectus, the Registration Statement or the Prospectus, or in any such
     amendment or supplement, in reliance upon and in conformity with written
     information concerning the Underwriter furnished to the Company through the
     Underwriter by or on behalf of the Underwriter specifically for inclusion
     therein which consists solely of information set forth in Section 10(f)
     hereof; and provided further, however that the Company shall not be liable
     to the Underwriter in any such case with respect to any untrue statement or
     alleged untrue statement or omission or alleged omission of a material fact
     in the Preliminary Prospectus to the extent that the loss, claim, damage or
     liability of the Underwriter (or the action in respect thereof) arises out
     of a sale by the Underwriter of Stock to a person who was not sent or
     given, at or prior to the closing of such sale to such person, a copy of
     the Prospectus as then amended or supplemented, if the Company had
     previously furnished (or made available) copies thereof to the Underwriter
     and the statement or omission in question contained in the Preliminary
     Prospectus was corrected therein. The foregoing indemnity agreement is in
     addition to any liability which the Company may otherwise have to the
     Underwriter or to any officer, employee or controlling person of the
     Underwriter.

          (b) Each Selling Stockholder, severally and not jointly, shall
     indemnify and hold harmless the Underwriter, its officers and employees,
     and each person, if any, who controls the Underwriter within the meaning of
     the Securities Act, from and against any loss, claim, damage or liability,
     joint or several, or any action in respect thereof (including, but not
     limited to, any loss, claim, damage, liability or action relating to
     purchases and sales of Stock), to which the Underwriter, officer, employee
     or controlling person may become subject, under the Securities Act or
     otherwise, insofar as such loss, claim, damage, liability or action arises
     out of, or is based upon, (1) any untrue statement or alleged untrue
     statement of a material fact contained in any Preliminary Prospectus, the
     Registration Statement or the Prospectus or in any amendment or supplement
     thereto or (2) the omission or alleged omission to state in any Preliminary
     Prospectus, Registration Statement or the Prospectus, or in any amendment
     or supplement thereto, any material fact required to be stated therein or
     necessary to make the statements therein not misleading, in the case of
     subparagraphs (1) and (2) of this Section to the extent, but only to the
     extent, that such untrue statement or alleged untrue statement or omission
     or alleged omission was made in reliance upon and in conformity with
     written information furnished to the Company or the Underwriter by such
     Selling Stockholder directly or through such Selling Stockholder's
     representatives, specifically for use in the preparation thereof; and shall
     reimburse the Underwriter, its officers and employees and each such
     controlling person for any legal or other expenses reasonably incurred by
     the Underwriter, its officers and employees or controlling person in
     connection with investigating or defending or preparing to defend against
     any such loss, claim, damage, liability or action as such expenses are
     incurred; provided, however, that the Selling Stockholders shall not be
     liable in any such case to the extent that any such loss, claim, damage,
     liability or action arises out of, or is based upon, any untrue statement
     or alleged untrue statement or omission or alleged omission made in any
     Preliminary Prospectus, the Registration Statement or the Prospectus or in
     any such amendment or supplement in reliance upon and in conformity with
     written information concerning the Underwriter furnished to the Company by
     or on behalf of the Underwriter specifically for inclusion therein which
     consists solely of the information specified in Section 10(f) hereof and
     provided, further, that with respect to any Preliminary Prospectus, the
     foregoing indemnity agreement shall not inure to the benefit of the
     Underwriter from whom the person asserting any loss, claim, damage,
     liability or expense purchased Stock, or any person controlling the
     Underwriter, if copies of the Prospectus were timely delivered to the
     Underwriter pursuant to this Agreement and a copy of the Prospectus (as
     then amended or supplemented if the Company shall have furnished any
     amendments or supplements thereto) was not sent or given by or on behalf of
     the Underwriter to such person, if required by law so to have been
     delivered and if the Prospectus (as so amended or supplemented) would have
     cured the defect giving rise to such loss, claim, damage, liability or
     expense. However, in no event shall the Selling Stockholder be liable under
     the provisions of this Section 10 for any amount in excess of the total
     proceeds received by such Selling Stockholder from the sale of the Stock by
     such Selling Stockholder (after deducting commissions, but before taxes and
     any other expenses) pursuant to this Agreement. The foregoing indemnity
     agreement is in addition to any liability which the Selling Stockholders
     may otherwise have to the Underwriter or any officer, employee or
     controlling person of the Underwriter.

          (c) The Underwriter shall indemnify and hold harmless the Company, its
     officers and employees, each of its directors, and each person, if any, who
     controls the Company within the meaning of the Securities Act, and each
     Selling Stockholder and its officers and employees, each of its directors,
     and each person if any, who controls the Selling Stockholder within the
     meaning of the Securities Act from and against any loss, claim, damage or
     liability, joint or several, or any action in respect thereof, to which the
     Company or any such director, officer or controlling person may become
     subject, under the Securities Act or otherwise, insofar as such loss,
     claim, damage, liability or action arises out of, or is based upon, (i) any
     untrue statement or alleged untrue statement of a material fact contained
     in any Preliminary Prospectus, the Registration Statement or the Prospectus
     or in any amendment or supplement thereto or (ii) the omission or alleged
     omission to state in any Preliminary Prospectus, the Registration Statement
     or the Prospectus, or in any amendment or supplement thereto, or in any
     Marketing Materials any material fact required to be stated therein or
     necessary to make the statements therein not misleading, but in each case
     only to the extent that the untrue statement or alleged untrue statement or
     omission or alleged omission was made in reliance upon and in conformity
     with written information concerning the Underwriter furnished to the
     Company through the Underwriter by or on behalf of the Underwriter
     specifically for inclusion therein, and shall reimburse the Company, such
     Selling Stockholder and any such director, officer or controlling person of
     the Company or the Selling Stockholder for any legal or other expenses
     reasonably incurred by the Company, such Selling Stockholder or any such
     director, officer or controlling person of the Company or the Selling
     Stockholder in connection with investigating or defending or preparing to
     defend against any such loss, claim, damage, liability or action as such
     expenses are incurred. The foregoing indemnity agreement is in addition to
     any liability which the Underwriter may otherwise have to the Company, such
     Selling Stockholder or any such director, officer, employee or controlling
     person of the Company or the Selling Stockholder.

          (d) Promptly after receipt by an indemnified party under this Section
     10 of notice of any claim or the commencement of any action, the
     indemnified party shall, if a claim in respect thereof is to be made
     against the indemnifying party under this Section 10, notify the
     indemnifying party in writing of the claim or the commencement of that
     action; provided, however, that the failure to notify the indemnifying
     party shall not relieve it from any liability which it may have under this
     Section 10 except to the extent it has been materially prejudiced by such
     failure; and, provided further, that the failure to notify the indemnifying
     party shall not relieve it from any liability which it may have to an
     indemnified party otherwise than under this Section 10. If any such claim
     or action shall be brought against an indemnified party, and it shall
     notify the indemnifying party thereof, the indemnifying party shall be
     entitled to participate therein and, to the extent that it wishes, jointly
     with any other similarly notified indemnifying party, to assume the defense
     thereof with counsel reasonably satisfactory to the indemnified party.
     After notice from the indemnifying party to the indemnified party of its
     election to assume the defense of such claim or action, the indemnifying
     party shall not be liable to the indemnified party under this Section 10
     for any legal or other expenses subsequently incurred by the indemnified
     party in connection with the defense thereof other than reasonable costs of
     investigation; provided, however, that the Underwriter shall have the right
     to employ counsel to represent the Underwriter and its respective officers,
     employees and controlling persons who may be subject to liability arising
     out of any claim in respect of which indemnity may be sought by the
     Underwriter against the Company or any Selling Stockholder under this
     Section 10 if, in the reasonable judgment of the Underwriter, it is
     advisable for the Underwriter, officers, employees and controlling persons
     to be jointly represented by separate counsel, and in that event the fees
     and expenses of such separate counsel shall be paid by the Company or
     Selling Stockholders. No indemnifying party shall (i) without the prior
     written consent of the indemnified parties (which consent shall not be
     unreasonably withheld), settle or compromise or consent to the entry of any
     judgment with respect to any pending or threatened claim, action, suit or
     proceeding in respect of which indemnification or contribution may be
     sought hereunder (whether or not the indemnified parties are actual or
     potential parties to such claim or action) unless such settlement,
     compromise or consent includes an unconditional release of each indemnified
     party from all liability arising out of such claim, action, suit or
     proceeding, or (ii) be liable for any settlement of any such action
     effected without its written consent (which consent shall not be
     unreasonably withheld), but if settled with the consent of the indemnifying
     party or if there be a final judgment of the plaintiff in any such action,
     the indemnifying party agrees to indemnify and hold harmless any
     indemnified party from and against any loss or liability by reason of such
     settlement or judgment.

          (e) If the indemnification provided for in this Section 10 shall for
     any reason be unavailable to or insufficient to hold harmless an
     indemnified party under Section 10(a), 10(b) or 10(c) in respect of any
     loss, claim, damage or liability, or any action in respect thereof,
     referred to therein, then each indemnifying party shall, in lieu of
     indemnifying such indemnified party, contribute to the amount paid or
     payable by such indemnified party as a result of such loss, claim, damage
     or liability, or action in respect thereof, (i) in such proportion as shall
     be appropriate to reflect the relative benefits received by the Company and
     the Selling Stockholders on the one hand and the Underwriter on the other
     from the offering of the Stock or (ii) if the allocation provided by clause
     (i) above is not permitted by applicable law, in such proportion as is
     appropriate to reflect not only the relative benefits referred to in clause
     (i) above but also the relative fault of the Company and the Selling
     Stockholders on the one hand and the Underwriter on the other with respect
     to the statements or omissions which resulted in such loss, claim, damage
     or liability, or action in respect thereof, as well as any other relevant
     equitable considerations; provided, the Selling Stockholders and the
     Underwriter shall be obligated to contribute under this Section 10(e) only
     with respect to losses, liabilities, claims, damages or expenses arising
     out of an untrue statement or omission or alleged untrue statement or
     omission of a material fact made in reliance upon and in conformity with
     the written information furnished to the Company or the Underwriter or any
     Selling Stockholder, as the case may be, by the Underwriter or the Selling
     Stockholders directly or through such Selling Stockholder's
     representatives, as the case may be, specifically for use in the
     preparation of any Preliminary Prospectus, Registration Statement or the
     Prospectus or in any amendment or supplement thereto. The relative benefits
     received by the Company and the Selling Stockholders on the one hand and
     the Underwriter on the other with respect to such offering shall be deemed
     to be in the same proportion as the total net proceeds from the offering of
     the Stock purchased under this Agreement (before deducting expenses)
     received by the Company and the Selling Stockholders, on the one hand, and
     the total underwriting discounts and commissions received by the
     Underwriter with respect to the shares of the Stock purchased under this
     Agreement, on the other hand, bear to the total gross proceeds from the
     offering of the shares of the Stock under this Agreement, in each case as
     set forth in the table on the cover page of the Prospectus. The relative
     fault shall be determined by reference to whether the untrue or alleged
     untrue statement of a material fact or omission or alleged omission to
     state a material fact relates to information supplied by the Company, the
     Selling Stockholders or the Underwriter, the intent of the parties and
     their relative knowledge, access to information and opportunity to correct
     or prevent such statement or omission. The Company, the Selling
     Stockholders and the Underwriter agree that it would not be just and
     equitable if contributions pursuant to this Section 10(e) were to be
     determined by pro rata allocation or by any other method of allocation
     which does not take into account the equitable considerations referred to
     herein. The amount paid or payable by an indemnified party as a result of
     the loss, claim, damage or liability, or action in respect thereof,
     referred to above in this Section shall be deemed to include, for purposes
     of this Section 10(e), any legal or other expenses reasonably incurred by
     such indemnified party in connection with investigating or defending any
     such action or claim. Notwithstanding the provisions of this Section 10(e),
     (i) the Underwriter shall not be required to contribute any amount in
     excess of the amount by which the total price at which the Stock
     underwritten by it and distributed to the public was offered to the public
     exceeds the amount of any damages which the Underwriter has otherwise paid
     or become liable to pay by reason of any untrue or alleged untrue statement
     or omission or alleged omission and (ii) no Selling Stockholder shall be
     required to contribute any amount in excess of the total proceeds received
     by such Selling Stockholder from the offering of the Stock by such Selling
     Stockholder (after deducting commissions, but before taxes and any other
     expenses). No person guilty of fraudulent misrepresentation (within the
     meaning of Section 10(f) of the Securities Act) shall be entitled to
     contribution from any person who was not guilty of such fraudulent
     misrepresentation.

          (f) The Underwriter confirms and the Company acknowledges that the
     statements with respect to the public offering of the Stock by the
     Underwriter set forth on the cover page of, the name of the Underwriter and
     its participation in the sale of Stock under the caption "Underwriting" in,
     and the paragraphs addressing the underwriting discount, concessions and
     reallowances, stabilization, short positions, syndicate transactions and
     penalty bids appearing under the caption "Underwriting" in, the Prospectus
     are correct and constitute the only information concerning the Underwriter
     furnished in writing to the Company by or on behalf of the Underwriter
     specifically for inclusion in the Registration Statement and the
     Prospectus.

         11. [Section Intentionally Omitted]

         12. Termination. The obligations of the Underwriter hereunder may be
terminated by the Underwriter by notice given to and received by the Company and
the Selling Stockholders prior to delivery of and payment for the Stock if,
prior to that time, any of the events described in Sections 9(k) or 9(l) hereof,
shall have occurred or if the Underwriter shall decline to purchase the Stock
for any reason permitted under this Agreement.

         13. Reimbursement of Underwriters' Expenses. If any Selling Stockholder
shall fail to tender the Stock for delivery to the Underwriter by reason of any
failure, refusal or inability on the part of the Company or any Selling
Stockholder to perform any agreement on its part to be performed, or because any
other condition of the Underwriter's obligations hereunder required to be
fulfilled by the Company or the Selling Stockholders is not fulfilled, the
Company will reimburse the Underwriter for all reasonable out-of-pocket expenses
(including reasonable fees and disbursements of counsel) incurred by the
Underwriter in connection with this Agreement and the proposed purchase of the
Stock, and upon demand the Company shall pay the full amount thereof to the
Underwriter. If this Agreement is terminated pursuant to Section 12 hereof by
reason of the default of the Underwriter, neither the Company nor the Selling
Stockholders shall be obligated to reimburse the Underwriter on account of those
expenses.

         14. Notices, etc. All statements, requests, notices and agreements
hereunder shall be in writing, and:

          (a) if to the Underwriter, shall be delivered or sent by mail, telex
     or facsimile transmission to Lehman Brothers Inc., Syndicate Registration
     Department, 1285 Avenue of the Americas, 13th Floor, New, New York, NY
     10019 (Fax: 212-526-0943), with a copy, in the case of any notice pursuant
     to Section 8(c), to the Director of Litigation, Office of the General
     Counsel, Lehman Brothers Inc., 399 Park Avenue, 10th Floor, New York, New
     York 10022;

          (b) if to the Company, shall be delivered or sent by mail, telex,
     facsimile transmission or recognized overnight delivery service to the
     address of the Company set forth in the Registration Statement, Attention:
     Phil Rykhoek (Fax: (972) 673-2051); and

          (c) if to any Selling Stockholder, shall be delivered or sent by mail,
     telex, facsimile transmission or recognized overnight delivery service to
     such Selling Stockholder at the address set forth on Schedule 2 hereto;

provided, however, that any notice to the Underwriter pursuant to Section 10(d)
above shall be delivered or sent by mail, telex, facsimile transmission or
recognized overnight delivery service to the Underwriter at its address set
forth in its acceptance telex to the Underwriter, which address will be supplied
to any other party hereto by the Underwriter upon request. Any such statements,
requests, notices or agreements shall take effect at the time of receipt
thereof. The Company and the Underwriter shall be entitled to act and rely upon
any request, consent, notice or agreement given or made on behalf of the Selling
Stockholders by a custodian.

         15. Persons Entitled to Benefit of Agreement. This Agreement shall
inure to the benefit of and be binding upon the Underwriter, the Company, the
Selling Stockholders and their respective personal representatives and
successors. This Agreement and the terms and provisions hereof are for the sole
benefit of only those persons, except that (A) the representations, warranties,
indemnities and agreements of the Company and the Selling Stockholders contained
in this Agreement shall also be deemed to be for the benefit of the person or
persons, if any, who control the Underwriter within the meaning of Section 15 of
the Securities Act and (B) the indemnity agreement of the Underwriters contained
in Section 10(c) of this Agreement shall be deemed to be for the benefit of
directors of the Company, directors or general partners of the Selling
Stockholders, as the case may be, officers of the Company who have signed the
Registration Statement and any person controlling the Company or a Selling
Stockholder within the meaning of Section 15 of the Securities Act. Nothing in
this Agreement is intended or shall be construed to give any person, other than
the persons referred to in this Section 15, any legal or equitable right, remedy
or claim under or in respect of this Agreement or any provision contained
herein.

         16. Survival. The respective indemnities, representations, warranties
and agreements of the Company, the Selling Stockholders and the Underwriter
contained in this Agreement or made by or on behalf on them, respectively,
pursuant to this Agreement, shall survive the delivery of and payment for the
Stock and shall remain in full force and effect, regardless of any investigation
made by or on behalf of any of them or any person controlling any of them.

         17. Definition of the Terms "Business Day" and "Subsidiary." For
purposes of this Agreement, (a) "business day" means any day on which the
American Stock Exchange is open for trading and (b) "subsidiary" has the meaning
set forth in Rule 405 of the Rules and Regulations.

         18. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of New York.

         19. Counterparts. This Agreement may be executed in one or more
counterparts and, if executed in more than one counterpart, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.

         20. Headings. The headings herein are inserted for convenience of
reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.

         If the foregoing correctly sets forth the agreement among the Company,
the Selling Stockholders and the Underwriter, please indicate your acceptance in
the space provided for that purpose below.

                                  Very truly yours,

                                  Denbury Resources Inc.

                                  By:
                                         -------------------------------
                                  Name:  Gareth Roberts
                                  Title: President and Chief Executive Officer

                                  The Selling Stockholders named in Schedule 2
                                  to this Agreement:

                                  TPG Partners, L.P.

                                  By: TPG GenPar, L.P., general partner

                                           By: TPG Advisors, Inc., general
                                                partner

                                           By:
                                              ----------------------------------
                                           Name:
                                           Title:

                                  TPG Parallel I, L.P.

                                  By: TPG GenPar, L.P.,  general partner

                                           By: TPG Advisors, Inc., general
                                                partner

                                           By:
                                               ---------------------------------
                                           Name:
                                           Title:

                                  TPG Partners II, L.P.

                                  By: TPG GenPar II, L.P., general partner

                                           By: TPG Advisors II, Inc.

                                           By:
                                               ---------------------------------
                                           Name:
                                           Title:

                                  TPG Parallel II, L.P.

                                  By: TPG GenPar II, L.P., general partner

                                           By: TPG Advisors II, Inc.

                                           By:
                                               ---------------------------------
                                           Name:
                                           Title:

                                  TPG Investors II, L.P.

                                  By: TPG GenPar II, L.P., general partner

                                           By: TPG Advisors II, Inc.

                                           By:
                                               ---------------------------------
                                           Name:
                                           Title:

                                  TPG 1999 Equity Partners II, L.P.

                                  By:  TPG Advisors II, Inc.

                                  By:
                                       ---------------------------------
                                  Name:
                                  Title:

Accepted:

LEHMAN BROTHERS INC.

By:
     -----------------------------
     Authorized Representative

<PAGE>

                                   SCHEDULE 1

                                                 Number of Shares of Stock to be
                                                 -------------------------------
                            Name of Underwriter             Purchased
                            -------------------             ---------

Lehman Brothers Inc.....................                    9,274,314

<PAGE>

                                   SCHEDULE 2

Name and address of Selling Stockholder                Number of Shares of Stock
---------------------------------------                -------------------------

TPG Partners, L.P. (1)                                                 2,696,861

TPG Parallel I, L.P. (1)                                                 268,762

TPG Partners II, L.P. (1)                                              5,375,140

TPG Parallel II, L.P. (1)                                                366,813

TPG Investors II, L.P. (1)                                               560,682

TPG 1999 Equity Partners II, L.P. (1)                                      6,056

                  Total                                                9,274,314

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

(1) The address for such Selling Stockholder is 301 Commerce Street, Suite 3300,
Fort Worth, Texas 76102, Attn: Richard A. Ekleberry (Fax: (817) 871-4088).

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