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EXHIBIT 10.5

                          REGISTRATION RIGHTS AGREEMENT

     This  Registration  Rights Agreement (this "Agreement") is made and entered
into  as  of  June 30, 2005, by and between New Century Energy Corp., a Colorado
corporation  (the  "Company"),  and  Laurus Master Fund, Ltd. (the "Purchaser").

     This Agreement is made pursuant to the Securities Purchase Agreement, dated
as of the date hereof, by and between the Purchaser and the Company (as amended,
modified  or  supplemented  from  time  to  time,  the  "Securities  Purchase
Agreement"),  and pursuant to the Note, the Options and the Warrants referred to
therein.

     The Company and the Purchaser hereby agree as follows:

     1.     DEFINITIONS.  Capitalized  terms  used  and  not  otherwise  defined
herein  that  are  defined  in  the Securities Purchase Agreement shall have the
meanings given such terms in the Securities Purchase Agreement.  As used in this
Agreement,  the  following  terms  shall  have  the  following  meanings:

     "Commission"  means  the  Securities  and  Exchange  Commission.

     "Common Stock" means shares of the Company's common stock, par value $0.001
per share.

     "Effectiveness  Date"  means  (i)  with respect to the initial Registration
Statement  required  to  be  filed  hereunder,  a date no later than one hundred
twenty  (120)  days  following  the  date  hereof  and (ii) with respect to each
additional  Registration  Statement  required  to  be filed hereunder, a date no
later than one hundred twenty (120) days following the applicable Filing Date.

     "Effectiveness Period" has the meaning set forth in Section 2(a).

     "Exchange  Act"  means the Securities Exchange Act of 1934, as amended, and
any successor statute.

     "Filing  Date" means, with respect to (i) the indebtedness evidenced by the
Note,  a date no later than thirty (30) days following the date hereof, (ii) the
shares  of  Common  Stock issuable upon exercise of the Warrant, a date no later
than  thirty  (30)  days after the date hereof, (iii) the shares of Common Stock
issuable  upon  exercise  of  the  Option, a date no later than thirty (30) days
after  the  date  hereof,  and  (iv)  the shares of Common Stock issuable to the
Holder as a result of adjustments to the Fixed Conversion Price made pursuant to
Section  3.6  of  the Note, Section 4 of the Warrant, Section 4 of the Option or
otherwise,  thirty  (30)  days after the occurrence of such event or the date of
the adjustment of the Fixed Conversion Price.

     "Holder"  or  "Holders"  means  the  Purchaser  or any of its affiliates or
transferees  to  the  extent any of them hold Registrable Securities, other than
those purchasing Registrable Securities in a market transaction.

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     "Indemnified Party" has the meaning set forth in Section 5(c).

     "Indemnifying Party" has the meaning set forth in Section 5(c).

     "Note" has the meaning set forth in the Securities Purchase Agreement.

     "Proceeding"  means  an  action,  claim,  suit, investigation or proceeding
(including,  without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

     "Prospectus"  means  the  prospectus  included  in a Registration Statement
(including,  without  limitation,  a  prospectus  that  includes any information
previously  omitted from a prospectus filed as part of an effective registration
statement  in  reliance upon Rule 430A promulgated under the Securities Act), as
amended  or supplemented by any prospectus supplement, with respect to the terms
of  the  offering  of  any portion of the Registrable Securities covered by such
Registration  Statement,  and  all  other  amendments  and  supplements  to  the
Prospectus,  including  post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

     "Options"  means  the  Common Stock purchase options issued pursuant to the
Securities Purchase Agreement.

     "Registrable  Securities"  means the shares of Common Stock issued upon the
conversion  of  the  Note  and  issuable  upon  exercise of the Warrants and the
Options.

     "Registration  Statement"  means each registration statement required to be
filed hereunder, including the Prospectus therein, amendments and supplements to
such  registration  statement  or  Prospectus, including pre- and post-effective
amendments,  all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

     "Rule  144"  means  Rule  144 promulgated by the Commission pursuant to the
Securities  Act,  as  such Rule may be amended from time to time, or any similar
rule  or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

     "Rule  415"  means  Rule  415 promulgated by the Commission pursuant to the
Securities  Act,  as  such Rule may be amended from time to time, or any similar
rule  or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

     "Securities  Act"  means  the  Securities  Act of 1933, as amended, and any
successor statute.

     "Securities  Purchase  Agreement" has the meaning given to such term in the
Preamble hereto.

     "Trading  Day"  means each day the Trading Market on which the Common Stock
is traded is open and available to trade securities.

<PAGE>

     "Trading  Market" means any of the NASD OTC Bulletin Board, NASDAQ SmallCap
Market,  the Nasdaq National Market, the American Stock Exchange or the New York
Stock Exchange.

     "Warrants"  means the Common Stock purchase warrants issued pursuant to the
Securities Purchase Agreement.

     2.     REGISTRATION.

          (a)  On  or  prior  to each Filing Date, the Company shall prepare and
     file  with the Commission a Registration Statement covering the Registrable
     Securities  for  a  selling  stockholder  resale  offering  to be made on a
     continuous basis pursuant to Rule 415. Each Registration Statement shall be
     on Form SB-2. The Company shall cause each Registration Statement to become
     effective  and  remain  effective as provided herein. The Company shall use
     its  reasonable  commercial efforts to cause each Registration Statement to
     be  declared  effective  under  the  Securities Act as promptly as possible
     after  the filing thereof, but in any event no later than the Effectiveness
     Date.  The Company shall use its reasonable commercial efforts to keep each
     Registration  Statement  continuously  effective  under  the Securities Act
     until  the  date  which  is  the  earlier  date of when (i) all Registrable
     Securities  have  been  sold  or (ii) all Registrable Securities covered by
     such  Registration  Statement  may be sold immediately without registration
     under  the  Securities Act and without volume restrictions pursuant to Rule
     144(k),  as  determined by the counsel to the Company pursuant to a written
     opinion  letter  to  such effect, addressed and acceptable to the Company's
     transfer agent and the affected Holders (each, an "Effectiveness Period").

          (b) If: (i) any Registration Statement is not filed on or prior to the
     applicable Filing Date for such Registration Statement; (ii) a Registration
     Statement  filed  hereunder  is not declared effective by the Commission by
     the  applicable Effectiveness Date; (iii) after a Registration Statement is
     filed  with  and  declared  effective  by the Commission, a Discontinuation
     Event  (as  hereafter  defined)  shall  occur  and  be  continuing, or such
     Registration  Statement ceases to be effective (by suspension or otherwise)
     as  to  all Registrable Securities to which it is required to relate at any
     time prior to the expiration of the Effectiveness Period applicable to such
     Registration  Statement  (without  being  succeeded  immediately  by  an
     additional  Registration  Statement  filed  and  declared effective), for a
     period  of  time  which  shall  exceed  30  days  in the aggregate per year
     (defined  as  a period of 365 days commencing on the date such Registration
     Statement is declared effective) or more than 20 consecutive calendar days;
     or  (iv)  the  Common  Stock  is not listed or quoted, or is suspended from
     trading on any Trading Market for a period of three (3) consecutive Trading
     Days  (provided  the  Company shall not have been able to cure such trading
     suspension within 30 days of the notice thereof or list the Common Stock on
     another Trading Market) (any such failure or breach as described in clauses
     (i)  through  (iv)  being  referred  to  as an "Event," and for purposes of
     clause  (i) or (ii) the date on which such Event occurs, or for purposes of
     clause  (iii)  the  date which such 30 day or 20 consecutive day period (as
     the  case  may  be) is exceeded, or for purposes of clause (iv) the date on
     which  such  three (3) Trading Day period is exceeded, being referred to as
     an  "Event  Date"); then as partial relief for the damages to the Purchaser
     by  reason  of  the occurrence of any such Event (which remedy shall not be
     exclusive of any other remedies available at law or in equity), the Company
     shall pay to the Purchaser, as liquidated damages and not as a penalty, for
     each  day  that  an Event has occurred and is continuing, an amount in cash
     equal  to  one-thirtieth  (1/30th)  of  the  product  of  (A)  the original
     principal  amount  of  the  Note multiplied by (B) one and one-half percent
     (1.50%).  In  the  event the Company fails to make any payments pursuant to
     this  Section 2(b) in a timely manner, such payments shall bear interest at
     the  rate  of  1.50%  per month (prorated for partial months) until paid in
     full.

<PAGE>

          (c)  Within three business days of the Effectiveness Date, the Company
     shall  cause  its  counsel  to issue a blanket opinion in the form attached
     hereto  as  Exhibit  A,  to  the transfer agent stating that the shares are
     subject  to an effective registration statement and can be reissued free of
     restrictive  legend upon notice of a sale by the Purchaser and confirmation
     by  the  Purchaser  that  it  has  complied  with  the  prospectus delivery
     requirements,  provided that the Company has not advised the transfer agent
     orally  or  in  writing  that the opinion has been withdrawn. Copies of the
     blanket  opinion  required  by  this Section 2(c) shall be delivered to the
     Purchaser within the time frame set forth above.

     3.     REGISTRATION PROCEDURES.  If and whenever the Company is required by
the  provisions  hereof to effect the registration of any Registrable Securities
under  the  Securities  Act,  the  Company  will,  as expeditiously as possible:

          (a) prepare and file with the Commission a Registration Statement with
     respect  to such Registrable Securities, respond as promptly as possible to
     any  comments  received  from  the  Commission, and use its best efforts to
     cause  such  Registration  Statement to become and remain effective for the
     Effectiveness  Period  with  respect  thereto,  and promptly provide to the
     Purchaser  copies of all filings and Commission letters of comment relating
     thereto;

          (b)  prepare  and  file  with  the  Commission  such  amendments  and
     supplements  to  the  Registration  Statement  and  the  Prospectus used in
     connection  therewith  as may be necessary to comply with the provisions of
     the  Securities  Act  with  respect  to  the disposition of all Registrable
     Securities  covered  by  such  Registration  Statement  and  to  keep  such
     Registration  Statement effective until the expiration of the Effectiveness
     Period applicable to such Registration Statement;

          (c) furnish to the Purchaser such number of copies of the Registration
     Statement  and  the Prospectus included therein (including each preliminary
     Prospectus)  as  the  Purchaser  reasonably  may  request to facilitate the
     public  sale  or  disposition of the Registrable Securities covered by such
     Registration Statement;

          (d) use its commercially reasonable efforts to register or qualify the
     Purchaser's  Registrable  Securities covered by such Registration Statement
     under  the  securities  or "blue sky" laws of such jurisdictions within the
     United  States  as the Purchaser may reasonably request, provided, however,
     that  the  Company  shall  not  for any such purpose be required to qualify
     generally to transact business as a foreign corporation in any jurisdiction
     where it is not so qualified or to consent to general service of process in
     any such jurisdiction;

<PAGE>

          (e)  list  the  Registrable  Securities  covered  by such Registration
     Statement  with  any  securities  exchange on which the Common Stock of the
     Company is then listed;

          (f)  immediately  notify  the  Purchaser at any time when a Prospectus
     relating  thereto  is required to be delivered under the Securities Act, of
     the  happening  of any event of which the Company has knowledge as a result
     of  which  the Prospectus contained in such Registration Statement, as then
     in  effect,  includes  an  untrue  statement of a material fact or omits to
     state  a  material  fact required to be stated therein or necessary to make
     the  statements  therein  not misleading in light of the circumstances then
     existing; and

          (g)  make  available for inspection by the Purchaser and any attorney,
     accountant  or  other  agent  retained  by  the  Purchaser,  all  publicly
     available,  non-confidential  financial  and  other  records,  pertinent
     corporate  documents and properties of the Company, and cause the Company's
     officers,  directors  and  employees  to  supply  all  publicly  available,
     non-confidential  information  reasonably  requested  by  the  attorney,
     accountant or agent of the Purchaser.

     4.     REGISTRATION  EXPENSES.  All  expenses  relating  to  the  Company's
compliance  with  Sections  2  and  3 hereof, including, without limitation, all
registration  and  filing  fees,  printing  expenses,  fees and disbursements of
counsel  and  independent  public accountants for the Company, fees and expenses
(including  reasonable  counsel fees) incurred in connection with complying with
state  securities  or "blue sky" laws, fees of the NASD, transfer taxes, fees of
transfer  agents and registrars, and fees of, and disbursements incurred by, one
counsel  for  the  Holders,  are  called  "Registration  Expenses".  All selling
commissions applicable to the sale of Registrable Securities, including any fees
and disbursements of any special counsel to the Holders beyond those included in
Registration Expenses, are called "Selling Expenses."  The Company shall only be
responsible  for  all  Registration  Expenses.

     5.     INDEMNIFICATION.

          (a) In the event of a registration of any Registrable Securities under
     the  Securities  Act pursuant to this Agreement, the Company will indemnify
     and  hold  harmless each Holder, and its officers, directors and each other
     person,  if  any,  who  controls  such  Holder  within  the  meaning of the
     Securities  Act,  against any losses, claims, damages or liabilities, joint
     or  several, to which such Holder, or such persons may become subject under
     the Securities Act or otherwise, insofar as such losses, claims, damages or
     liabilities  (or actions in respect thereof) arise out of or are based upon
     any  untrue  statement  or  alleged  untrue  statement of any material fact
     contained  in  any  Registration  Statement  under  which  such Registrable
     Securities  were  registered  under  the  Securities  Act  pursuant to this
     Agreement,  any  preliminary  Prospectus  or  final  Prospectus  contained
     therein,  or  any  amendment  or supplement thereof, or arise out of or are
     based  upon  the  omission  or alleged omission to state therein a material
     fact  required  to  be  stated  therein or necessary to make the statements
     therein  not  misleading,  and  will  reimburse  such Holder, and each such
     person  for  any  reasonable  legal  or  other expenses incurred by them in
     connection  with  investigating  or defending any such loss, claim, damage,
     liability or action; provided, however, that the Company will not be liable
                          --------  -------
     in  any such case if and to the extent that any such loss, claim, damage or
     liability  arises  out  of  or is based upon an untrue statement or alleged
     untrue statement or omission or alleged omission so made in conformity with
     information  furnished  by or on behalf of the Purchaser or any such person
     in writing specifically for use in any such document.

<PAGE>

          (b) In the event of a registration of the Registrable Securities under
     the Securities Act pursuant to this Agreement, the Purchaser will indemnify
     and  hold  harmless the Company, and its officers, directors and each other
     person,  if  any,  who  controls  the  Company  within  the  meaning of the
     Securities  Act,  against all losses, claims, damages or liabilities, joint
     or  several,  to which the Company or such persons may become subject under
     the Securities Act or otherwise, insofar as such losses, claims, damages or
     liabilities  (or actions in respect thereof) arise out of or are based upon
     any untrue statement or alleged untrue statement of any material fact which
     was  furnished in writing by the Purchaser to the Company expressly for use
     in  (and such information is contained in) the Registration Statement under
     which  such Registrable Securities were registered under the Securities Act
     pursuant  to this Agreement, any preliminary Prospectus or final Prospectus
     contained  therein, or any amendment or supplement thereof, or arise out of
     or  are  based  upon  the  omission  or alleged omission to state therein a
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein not misleading, and will reimburse the Company and each
     such  person for any reasonable legal or other expenses incurred by them in
     connection  with  investigating  or defending any such loss, claim, damage,
     liability  or  action, provided, however, that the Purchaser will be liable
                            --------  -------
     in  any  such  case  if  and  only to the extent that any such loss, claim,
     damage  or  liability arises out of or is based upon an untrue statement or
     alleged  untrue  statement  or  omission  or  alleged  omission  so made in
     conformity  with  information  furnished in writing to the Company by or on
     behalf  of  the  Purchaser  specifically  for  use  in  any  such document.
     Notwithstanding  the  provisions of this paragraph, the Purchaser shall not
     be  required  to  indemnify any person or entity in excess of the amount of
     the  aggregate  net  proceeds  received  by  the  Purchaser  in  respect of
     Registrable  Securities  in connection with any such registration under the
     Securities Act.

          (c)  Promptly  after  receipt  by  a  party  entitled  to  claim
     indemnification  hereunder  (an  "Indemnified  Party")  of  notice  of  the
     commencement  of  any  action, such Indemnified Party shall, if a claim for
     indemnification  in  respect  thereof  is to be made against a party hereto
     obligated  to  indemnify  such Indemnified Party (an "Indemnifying Party"),
     notify  the  Indemnifying  Party in writing thereof, but the omission so to
     notify the Indemnifying Party shall not relieve it from any liability which
     it  may  have  to such Indemnified Party other than under this Section 5(c)
     and  shall  only  relieve  it  from any liability which it may have to such
     Indemnified  Party  under  this  Section  5(c)  if  and  to  the extent the
     Indemnifying  Party is prejudiced by such omission. In case any such action
     shall  be  brought against any Indemnified Party and such Indemnified Party
     shall have notified the Indemnifying Party of the commencement thereof, the
     Indemnifying  Party  shall be entitled to participate in and, to the extent
     it  shall  wish,  to  assume and undertake the defense thereof with counsel
     satisfactory  to  such  Indemnified  Party,  and,  after  notice  from  the
     Indemnifying  Party  to such Indemnified Party of its election so to assume
     and  undertake  the  defense  thereof,  the Indemnifying Party shall not be
     liable  to  such  Indemnified  Party  under this Section 5(c) for any legal
     expenses subsequently incurred by such Indemnified Party in connection with
     the defense thereof; if the Indemnified Party retains its own counsel, then
     the  Indemnified  Party  shall  pay  all  fees,  costs and expenses of such
     counsel,  provided,  however,  that,  if  the defendants in any such action
               --------   --------
     include  both  the  Indemnified  Party  and  the Indemnifying Party and the
     Indemnified  Party  shall  have  reasonably  concluded  that  there  may be
     reasonable  defenses available to it which are different from or additional
     to  those  available  to  the Indemnifying Party or if the interests of the
     Indemnified  Party  reasonably may be deemed to conflict with the interests
     of  the  Indemnifying  Party, the Indemnified Party shall have the right to
     select one separate counsel and to assume such legal defenses and otherwise
     to  participate in the defense of such action, with the reasonable expenses
     and  fees  of  such  separate  counsel  and  other expenses related to such
     participation to be reimbursed by the Indemnifying Party as incurred.

<PAGE>

          (d)  In  order  to  provide for just and equitable contribution in the
     event  of  joint  liability  under  the Securities Act in any case in which
     either (i) the Purchaser, or any officer, director or controlling person of
     the Purchaser, makes a claim for indemnification pursuant to this Section 5
     but it is judicially determined (by the entry of a final judgment or decree
     by  a  court of competent jurisdiction and the expiration of time to appeal
     or  the  denial  of the last right of appeal) that such indemnification may
     not  be  enforced in such case notwithstanding the fact that this Section 5
     provides  for  indemnification in such case, or (ii) contribution under the
     Securities  Act  may  be  required  on  the  part  of the Purchaser or such
     officer,  director  or controlling person of the Purchaser in circumstances
     for  which  indemnification  is provided under this Section 5; then, and in
     each  such  case,  the  Company  and  the  Purchaser will contribute to the
     aggregate  losses,  claims,  damages  or  liabilities  to which they may be
     subject  (after  contribution  from  others) in such proportion so that the
     Purchaser is responsible only for the portion represented by the percentage
     that  the  public  offering  price  of  its  securities  offered  by  the
     Registration Statement bears to the public offering price of all securities
     offered  by  such  Registration  Statement, provided, however, that, in any
                                                 --------  -------
     such  case, (A) the Purchaser will not be required to contribute any amount
     in excess of the public offering price of all such securities offered by it
     pursuant to such Registration Statement; and (B) no person or entity guilty
     of fraudulent misrepresentation (within the meaning of Section 10(f) of the
     Act) will be entitled to contribution from any person or entity who was not
     guilty of such fraudulent misrepresentation.

     6.     REPRESENTATIONS  AND  WARRANTIES.

          (a)  The Common Stock is registered pursuant to Section 12(b) or 12(g)
     of  the  Exchange Act and, except with respect to certain matters which the
     Company  has  disclosed to the Purchaser on Schedule 4.21 to the Securities
     Purchase  Agreement,  the  Company has timely filed all reports, schedules,
     forms,  statements and other documents required to be filed by it under the
     Exchange  Act. The Company has filed (i) its Annual Report on Form 10-K for
     the  fiscal  year  ended December 31, 2004 and (ii) its Quarterly Report on
     Form  10-Q  for  the fiscal quarter ended March 31, 2005 (collectively, the
     "SEC  Reports").  Each  SEC  Report  was,  at  the  time  of its filing, in
     substantial  compliance  with  the  requirements of its respective form and
     none  of  the  SEC  Reports,  nor  the  financial statements (and the notes
     thereto)  included in the SEC Reports, as of their respective filing dates,
     contained  any  untrue  statement  of a material fact or omitted to state a
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein,  in  light  of the circumstances under which they were
     made,  not  misleading. The financial statements of the Company included in
     the  SEC Reports comply as to form in all material respects with applicable
     accounting  requirements  and  the  published  rules and regulations of the
     Commission  or other applicable rules and regulations with respect thereto.
     Such  financial  statements have been prepared in accordance with generally
     accepted  accounting  principles  ("GAAP")  applied  on  a consistent basis
     during  the  periods  involved (except (i) as may be otherwise indicated in
     such  financial  statements  or  the  notes  thereto or (ii) in the case of
     unaudited  interim statements, to the extent they may not include footnotes
     or  may  be  condensed)  and  fairly  present  in all material respects the
     financial  condition,  the  results of operations and the cash flows of the
     Company  and its subsidiaries, on a consolidated basis, as of, and for, the
     periods presented in each such SEC Report.

<PAGE>

          (b)  The  Common Stock is listed for trading on the OTC Bulletin Board
     and  satisfies  all  requirements for the continuation of such listing, and
     the  Company  shall  do  all  things necessary for the continuation of such
     listing. The Company has not received any notice that its Common Stock will
     be  delisted  from  the  OTC Bulletin Board (except for prior notices which
     have  been  fully  remedied)  or  that  the  Common Stock does not meet all
     requirements for the continuation of such listing.

          (c)  Neither  the  Company,  nor any of its affiliates, nor any person
     acting  on  its or their behalf, has directly or indirectly made any offers
     or  sales of any security or solicited any offers to buy any security under
     circumstances  that  would cause the offering of the Securities pursuant to
     the  Securities Purchase Agreement to be integrated with prior offerings by
     the  Company  for  purposes  of  the Securities Act which would prevent the
     Company  from  selling  the  Common  Stock  pursuant  to Rule 506 under the
     Securities  Act,  or  any  applicable exchange-related stockholder approval
     provisions,  nor  will the Company or any of its affiliates or subsidiaries
     take any action or steps that would cause the offering of the Securities to
     be integrated with other offerings.

          (d) The Warrants, the Options, the Note and the shares of Common Stock
     which  the  Purchaser may acquire pursuant to the Warrants, the Options and
     the  Note  are all restricted securities under the Securities Act as of the
     date  of this Agreement. The Company will not issue any stop transfer order
     or  other  order  impeding  the sale and delivery of any of the Registrable
     Securities  at  such time as such Registrable Securities are registered for
     public  sale  or  an  exemption  from  registration is available, except as
     required by federal or state securities laws.

          (e)  The  Company understands the nature of the Registrable Securities
     issuable  upon  the conversion of the Note, the exercise of the Warrant and
     the  exercise  of  the  Option  and  recognizes  that  the issuance of such
     Registrable  Securities  may  have a potential dilutive effect. The Company
     specifically  acknowledges  that  its  obligation  to issue the Registrable
     Securities  is  binding  upon the Company and enforceable regardless of the
     dilution  such  issuance  may  have  on  the  ownership  interests of other
     shareholders of the Company.

<PAGE>

          (f)  Except  for  agreements  made in the ordinary course of business,
     there  is  no  agreement  that has not been filed with the Commission as an
     exhibit  to  a  registration statement or to a form required to be filed by
     the Company under the Exchange Act, the breach of which could reasonably be
     expected  to  have  a  material  and  adverse effect on the Company and its
     subsidiaries,  or would prohibit or otherwise interfere with the ability of
     the  Company  to  enter  into and perform any of its obligations under this
     Agreement in any material respect.

          (g)  The  Company  will  at  all  times have authorized and reserved a
     sufficient  number of shares of Common Stock for the full conversion of the
     Note and exercise of the Warrants and the Options.

     7.     MISCELLANEOUS.

          (a)  REMEDIES.  In the event of a breach by the Company or by a Holder
     of any of their respective obligations under this Agreement, each Holder or
     the  Company, as the case may be, in addition to being entitled to exercise
     all  rights  granted by law and under this Agreement, including recovery of
     damages,  will be entitled to specific performance of its rights under this
     Agreement.

          (b)  NO  PIGGYBACK  ON  REGISTRATIONS. Except as and to the extent set
     forth  on Schedule 7(b) hereto, neither the Company nor any of its security
     holders  (other  than  the  Holders  in  such capacity pursuant hereto) may
     include  securities of the Company in any Registration Statement other than
     the Registrable Securities, and the Company shall not after the date hereof
     enter  into  any agreement providing any such right for inclusion of shares
     in the Registration Statement to any of its security holders. Except as and
     to  the  extent  specified  in  Schedule  7(b)  hereto, the Company has not
     previously entered into any agreement granting any registration rights with
     respect to any of its securities to any person or entity that have not been
     fully satisfied.

          (c)  COMPLIANCE.  Each Holder covenants and agrees that it will comply
     with  the  prospectus  delivery  requirements  of  the  Securities  Act  as
     applicable  to  it  in  connection  with  sales  of  Registrable Securities
     pursuant to any Registration Statement.

          (d) DISCONTINUED DISPOSITION. Each Holder agrees by its acquisition of
     such Registrable Securities that, upon receipt of a notice from the Company
     of  the  occurrence  of  a  Discontinuation  Event (as defined below), such
     Holder  will  forthwith  discontinue  disposition  of  such  Registrable
     Securities  under the applicable Registration Statement until such Holder's
     receipt  of  the  copies  of  the  supplemented  Prospectus  and/or amended
     Registration  Statement or until it is advised in writing (the "Advice") by
     the  Company that the use of the applicable Prospectus may be resumed, and,
     in  either  case,  has  received  copies  of any additional or supplemental
     filings  that are incorporated or deemed to be incorporated by reference in
     such  Prospectus  or  Registration  Statement.  The  Company  may  provide
     appropriate  stop  orders  to enforce the provisions of this paragraph.

<PAGE>

     For  purposes  of  this  Section  7(d),  a  "Discontinuation  Event"  shall
     mean  (i)  any  request  by  the  Commission  or any other Federal or state
     governmental  authority  for amendments or supplements to such Registration
     Statement or Prospectus or for additional information; (ii) the issuance by
     the  Commission  of  any  stop  order  suspending the effectiveness of such
     Registration Statement covering any or all of the Registrable Securities or
     the  initiation  of  any Proceedings for that purpose; (iii) the receipt by
     the  Company  of  any  notification  with  respect to the suspension of the
     qualification  or  exemption  from  qualification of any of the Registrable
     Securities  for  sale in any jurisdiction, or the initiation or threatening
     of any Proceeding for such purpose; and/or (iv) the occurrence of any event
     or  passage  of  time  that makes the financial statements included in such
     Registration  Statement  ineligible  for inclusion therein or any statement
     made  in  such  Registration  Statement  or  Prospectus  or  any  document
     incorporated  or  deemed  to be incorporated therein by reference untrue in
     any  material  respect  or that requires any revisions to such Registration
     Statement,  Prospectus  or  other  documents  so  that, in the case of such
     Registration  Statement  or  Prospectus,  as  the  case may be, it will not
     contain  any  untrue  statement  of  a  material  fact or omit to state any
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein,  in  light  of the circumstances under which they were
     made, not misleading.

          (e)  PIGGY-BACK REGISTRATIONS. If at any time during any Effectiveness
     Period there is not an effective Registration Statement covering all of the
     Registrable  Securities  required  to  be covered during such Effectiveness
     Period  and  the  Company  shall  determine  to  prepare  and file with the
     Commission  a  registration  statement  relating to an offering for its own
     account  or  the  account  of others under the Securities Act of any of its
     equity  securities, other than on Form S-4 or Form S-8 (each as promulgated
     under  the  Securities  Act)  or  their then equivalents relating to equity
     securities  to  be  issued solely in connection with any acquisition of any
     entity  or  business or equity securities issuable in connection with stock
     option or other employee benefit plans, then the Company shall send to each
     Holder  written  notice  of  such determination and, if within fifteen (15)
     days  after  receipt  of  such  notice, any such Holder shall so request in
     writing,  the  Company  shall include in such registration statement all or
     any  part  of  such  Registrable  Securities  such  Holder  requests  to be
     registered  to  the  extent  the  Company  may  do  so  without  violating
     registration rights of others which exist as of the date of this Agreement,
     subject  to  customary  underwriter  cutbacks  applicable to all holders of
     registration  rights  and  subject to obtaining any required consent of any
     selling stockholder(s) to such inclusion under such registration statement.

          (f)  AMENDMENTS  AND  WAIVERS.  The  provisions  of  this  Agreement,
     including  the provisions of this sentence, may not be amended, modified or
     supplemented,  and  waivers  or  consents to departures from the provisions
     hereof  may not be given, unless the same shall be in writing and signed by
     the Company and the Holders of the then outstanding Registrable Securities.
     Notwithstanding  the  foregoing,  a  waiver  or  consent to depart from the
     provisions  hereof with respect to a matter that relates exclusively to the
     rights  of  certain Holders and that does not directly or indirectly affect
     the  rights of other Holders may be given by Holders of at least a majority
     of  the  Registrable  Securities  to  which such waiver or consent relates;
     provided, however, that the provisions of this sentence may not be amended,
     --------  -------
     modified,  or  supplemented except in accordance with the provisions of the
     immediately preceding sentence.

<PAGE>

          (g)  NOTICES.  Any  notice  or  request  hereunder may be given to the
     Company  or the Purchaser at the respective addresses set forth below or as
     may  hereafter  be  specified in a notice designated as a change of address
     under  this Section 7(g). Any notice or request hereunder shall be given by
     registered  or  certified  mail,  return  receipt requested, hand delivery,
     overnight  mail,  Federal  Express  or  other  national  overnight next day
     carrier  (collectively, "Courier") or telecopy (confirmed by mail). Notices
     and  requests  shall  be,  in the case of those by hand delivery, deemed to
     have been given when delivered to any party to whom it is addressed; in the
     case  of  those  by mail or overnight mail, deemed to have been given three
     (3)  business  days  after  the date when deposited in the mail or with the
     overnight  mail  carrier;  in  the case of a Courier, the next business day
     following timely delivery of the package with the Courier; and, in the case
     of  a  telecopy,  when  confirmed.  The  address  for  such  notices  and
     communications shall be as follows:

If  to  the  Company,  to:        New Century Energy Corp.
                                  5851 San Felipe, Suite 775
                                  Houston, Texas 77057
                                  Attention:  Chief Financial Officer
                                  Facsimile:  713-255-4358

                                  with  a  copy  to:

                                  David  M.  Loev,  Esq.
                                  2777  Allen  Parkway
                                  Suite  1000
                                  Houston,  Texas  77019
                                  Facsimile:  713-524-4122

If  to  the  Purchaser,  to:      Laurus  Master  Fund,  Ltd.
                                  c/o  M&C  Corporate  Services  Limited
                                  P.O.  Box  309  GT
                                  Ugland  House
                                  George  Town
                                  South  Church  Street
                                  Grand  Cayman,  Cayman  Islands
                                  Facsimile:  345-949-8080

                                  with  a  copy  to:

                                  Laurus  Master  Fund,  Ltd.
                                  825  Third  Avenue  14th  Floor
                                  New  York,  New  York  10022
                                  Attention:  David  Grin
                                  Facsimile:  212-541-4434

<PAGE>

                                  with  a  copy  to:

                                  Loeb  &  Loeb  LLP
                                  345  Park  Avenue
                                  New  York,  New  York  10154
                                  Attention:  Scott  J.  Giordano,  Esq.
                                  Facsimile:  212-407-4990

If  to any other person           To the address of such Holder as it appears
who is then the                   in the stock transfer books of the Company
registered Holder:

     or  such  other  address  as  may  be  designated  in  writing hereafter in
     accordance with this Section 7(g) by such person.

          (h)  SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
     of  and be binding upon the successors and permitted assigns of each of the
     parties  and shall inure to the benefit of each Holder. The Company may not
     assign  its  rights  or  obligations  hereunder  without  the prior written
     consent  of  each  Holder.  Each  Holder  may  assign its respective rights
     hereunder  in the manner and to the persons and entities as permitted under
     the  Note  and  the  Securities  Purchase  Agreement with the prior written
     consent of the Company, which consent shall not be unreasonably withheld.

          (i)  EXECUTION AND COUNTERPARTS. This Agreement may be executed in any
     number  of  counterparts, each of which when so executed shall be deemed to
     be  an  original  and, all of which taken together shall constitute one and
     the  same  agreement.  In  the  event  that  any  signature is delivered by
     facsimile  transmission,  such  signature  shall  create  a  valid  binding
     obligation  of  the  party  executing (or on whose behalf such signature is
     executed)  the  same  with  the  same force and effect as if such facsimile
     signature were the original thereof.

          (j)  GOVERNING  LAW,  JURISDICTION  AND  WAIVER  OF  JURY  TRIAL. This
     Agreement  shall  be  governed  by and construed and enforced in accordance
     with  the  laws  of  the State of New York applicable to contracts made and
     performed  in such State, without regard to principles of conflicts of law.
     The  Company  hereby  consents  and agrees that the state or federal courts
     located  in  the County of New York, State of New York shall have exclusion
     jurisdiction  to  hear and determine any Proceeding between the Company, on
     the  one  hand,  and  the  Purchaser, on the other hand, pertaining to this
     Agreement  or  to  any  matter arising out of or related to this Agreement;
     provided,  that  the Purchaser and the Company acknowledge that any appeals
     --------
     from  those  courts  may have to be heard by a court located outside of the
     County  of  New York, State of New York, and further provided, that nothing
                                                  ----------------
     in this Agreement shall be deemed or operate to preclude the Purchaser from
     bringing a Proceeding in any other jurisdiction to collect the obligations,
     to  realize on the Collateral or any other security for the obligations, or
     to  enforce  a judgment or other court order in favor of the Purchaser.

<PAGE>

     The  Company  expressly  submits  and  consents  in  advance  to  such
     jurisdiction in any Proceeding commenced in any such court, and the Company
     hereby  waives  any objection which it may have based upon lack of personal
     jurisdiction,  improper  venue  or forum non conveniens. The Company hereby
                                        --------------------
     waives  personal service of the summons, complaint and other process issued
     in  any  such Proceeding and agrees that service of such summons, complaint
     and  other process may be made by registered or certified mail addressed to
     the  Company  at  the address set forth in Section 7(g) and that service so
     made  shall  be  deemed  completed upon the earlier of the Company's actual
     receipt  thereof  or three (3) days after deposit in the U.S. mails, proper
     postage  prepaid. The parties hereto desire that their disputes be resolved
     by  a  judge  applying such applicable laws. Therefore, to achieve the best
     combination  of the benefits of the judicial system and of arbitration, the
     parties  hereto waive all rights to trial by jury in any Proceeding brought
     to  resolve  any  dispute,  whether arising in contract, tort, or otherwise
     between  the  Purchaser  and/or the Company arising out of, connected with,
     related  or  incidental  to  the  relationship  established between then in
     connection  with  this  Agreement.  If either party hereto shall commence a
     Proceeding  to  enforce  any  provisions  of this Agreement, the Securities
     Purchase  Agreement  or  any  other  Related Agreement, then the prevailing
     party  in  such  Proceeding  shall be reimbursed by the other party for its
     reasonable  attorneys'  fees and other costs and expenses incurred with the
     investigation, preparation and prosecution of such Proceeding.

          (k)  CUMULATIVE  REMEDIES. The remedies provided herein are cumulative
     and not exclusive of any remedies provided by law.

          (l)  SEVERABILITY.  If any term, provision, covenant or restriction of
     this  Agreement is held by a court of competent jurisdiction to be invalid,
     illegal,  void  or  unenforceable,  the remainder of the terms, provisions,
     covenants  and restrictions set forth herein shall remain in full force and
     effect  and  shall  in no way be affected, impaired or invalidated, and the
     parties  hereto  shall  use  their reasonable efforts to find and employ an
     alternative  means  to achieve the same or substantially the same result as
     that  contemplated  by such term, provision, covenant or restriction. It is
     hereby stipulated and declared to be the intention of the parties that they
     would  have  executed  the  remaining  terms,  provisions,  covenants  and
     restrictions  without  including any of such that may be hereafter declared
     invalid, illegal, void or unenforceable.

          (m)  HEADINGS.  The  headings in this Agreement are for convenience of
     reference only and shall not limit or otherwise affect the meaning hereof.

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

<PAGE>

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
as  of  the  date  first  written  above.

NEW CENTURY ENERGY CORP.                     LAURUS MASTER FUND, LTD.

By:   /s/ Edward R. DeStefano                   By: /s/ Eugene Grin
      ----------------------------                 ----------------------------
Name:     Edward R. DeStefano                 Name:     Eugene Grin
      ----------------------------                 ----------------------------
Title:    President                          Title:     Director
      ----------------------------                 ----------------------------

<PAGE>

                                    EXHIBIT A
                             [              , 200   ]
                              ---------  ---     ---

[Continental  Stock  Transfer
  &  Trust  Company
Two  Broadway
New  York,  New  York  10004
Attn:  William  Seegraber]

Re:     New Century Energy Corp. Registration Statement on Form [S-3]
        -------------------------------------------------------------

Ladies  and  Gentlemen:

     As  counsel  to  New  Century  Energy  Corp.,  a  Colorado corporation (the
"Company"),  we  have  been requested to render our opinion to you in connection
with  the  resale  by  the individuals or entitles listed on Schedule A attached
hereto  (the  "Selling Stockholders"), of an aggregate of            shares (the
                                                          -----------
"Shares")  of  the  Company's  Common  Stock.

     A Registration Statement on Form [S-3] under the Securities Act of 1933, as
amended  (the  "Act"),  with  respect  to  the resale of the Shares was declared
effective  by  the Securities and Exchange Commission on [date]. Enclosed is the
Prospectus  dated  [date].  We  understand that the Shares are to be offered and
sold in the manner described in the Prospectus.

     Based  upon  the foregoing, upon request by the Selling Stockholders at any
time  while the registration statement remains effective, it is our opinion that
the  Shares  have  been registered for resale under the Act and new certificates
evidencing  the  Shares  upon  their  transfer or re-registration by the Selling
Stockholders may be issued without restrictive legend. We will advise you if the
registration statement is not available or effective at any point in the future.

Very  truly  yours,

[Company  counsel]

<PAGE>

                                   SCHEDULE A

                                                                Shares
    Selling Stockholder                                     Being Offered
    ------------------                                      -------------

<PAGE>EXHIBIT 10.6

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

            Right to Purchase up to 10,222,784 Shares of Common Stock
            ---------------------------------------------------------
                           of New Century Energy Corp.
                           ---------------------------
                   (subject to adjustment as provided herein)

                                     OPTION

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

          NEW  CENTURY  ENERGY  CORP., a corporation organized under the laws of
the  State  of  Colorado  (the  "Company"),  hereby  certifies  that,  for value
received,  LAURUS  MASTER  FUND,  LTD.,  or assigns (the "Holder"), is entitled,
subject  to  the terms set forth below, to purchase from the Company (as defined
herein)  from  and  after  the Issue Date of this Option and at any time or from
time  to  time,  up  to 10,222,784 fully paid and nonassessable shares of Common
Stock  (as  hereinafter  defined),  $0.001  par value per share, at the Exercise
Price  per share (as defined below).  The number and character of such shares of
Common  Stock  are  subject  to  adjustment  as  provided  herein.

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

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

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

     (c)     "Exercise  Price"  means  $1.00.

<PAGE>

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

     (e)     "Purchase  Agreement" means the Securities Purchase Agreement dated
as  of  the  date  hereof  by  and  between  the  Company  and  the  Holder.

1.     Exercise  of  Option.
       --------------------

     1.1     Number  of  Shares Issuable upon Exercise.  From and after the
             -----------------------------------------
date  hereof,  the  Holder  shall  be entitled to receive, upon exercise of this
Option  in  whole  or  in  part,  by  delivery  of an original or fax copy of an
exercise  notice  in  the  form  attached  hereto  as  Exhibit  A (the "Exercise
Notice"),  shares of Common Stock of the Company, subject to adjustment pursuant
to  Section 4.  The Holder may not sell any shares of the Common Stock delivered
to the Holder upon exercise of this Option until the earlier of: (a) the payment
in  full  of all of the obligations and liabilities of the Company to the Holder
under the Purchase Agreement and the Note (as defined in the Purchase Agreement)
have  been  paid  in full and (b) the exercise of the Warrant (as defined in the
Purchase Agreement) by the Holder; provided; however, the Holder may sell all or
                                   --------  -------
any  portion  of  the Common Stock delivered to the Holder upon exercise of this
Option  following  the  occurrence  and  during  the  continuance of an Event of
Default.

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

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

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

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

<PAGE>

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

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

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

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

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

<PAGE>

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

3.     Effect  of  Reorganization,  Etc..
       ---------------------------------

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

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

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

<PAGE>

4.     Extraordinary Events Regarding Common Stock.  In  the  event  that
       -------------------------------------------
the  Company shall (a) issue additional shares of the Common Stock as a dividend
or  other distribution on outstanding Common Stock or any preferred stock issued
by  the  Company,  (b)  subdivide its outstanding shares of Common Stock, or (c)
combine  its  outstanding  shares  of  the Common Stock into a smaller number of
shares  of  the  Common  Stock  (each  of the preceding clauses (a) through (c),
inclusive, an "Event"), then, in each such event, the number of shares of Common
Stock  that  the  Holder shall thereafter, on the exercise hereof as provided in
Section  1,  be  entitled to receive shall be increased or decreased to a number
determined  by  multiplying  the  number  of  shares of Common Stock that would,
immediately prior to such Event, be issuable upon the exercise of this Option by
a  fraction  of  which (a) the numerator is the number of issued and outstanding
shares  of Common Stock immediately after such Event, and (b) the denominator is
the number of issued and outstanding shares of Common Stock immediately prior to
such  Event.

5.     Certificate  as  to  Adjustments.  In  each  case  of  any  adjustment or
       --------------------------------
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise  of  this  Option,  the  Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with  the  terms  of this Option and prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the  facts  upon  which  such  adjustment  or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to  have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities)  outstanding  or  deemed  to  be  outstanding, and (c) the number of
shares  of  Common  Stock to be received upon exercise of this Option, in effect
immediately  prior  to  such  adjustment  or  readjustment  and  as  adjusted or
readjusted  as  provided in this Option.  The Company will forthwith mail a copy
of  each  such  certificate  to  the  Holder and any Option agent of the Company
(appointed  pursuant  to  Section  11  hereof).

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

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

<PAGE>

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

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

10.     Maximum Exercise.  Notwithstanding  anything  contained  herein  to  the
        ----------------
contrary, the Holder shall not be entitled to exercise this Option in connection
with  that  number  of  shares of Common Stock which would exceed the difference
between  (i) 4.99% of the issued and outstanding shares of Common Stock and (ii)
the  number of shares of Common Stock beneficially owned by the Holder.  For the
purposes  of  the  immediately preceding sentence, beneficial ownership shall be
determined  in  accordance  with Section 13(d) of the Securities Exchange Act of
1934,  as amended, and Regulation 13d-3 thereunder.  The limitation described in
the  first  sentence of this Section 10 shall automatically become null and void
following  notice  to the Company upon the occurrence and during the continuance
of  an  Event of Default under and as defined in the Note made by the Company to
the Holder dated the date hereof (as amended, modified or supplemented from time
to  time,  the  "Note"),  or  upon  75  days  prior  notice  to  the  Company.

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

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

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

<PAGE>

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

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

<PAGE>

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

                                    NEW  CENTURY  ENERGY  CORP.
WITNESS:
                                    By: /s/ Edward R. DeStefano
                                       -------------------------------
                                    Name:   Edward R. DeStefano
/s/ Kimberly Newman                      -----------------------------
------------------------------      Title:  President
    Kimberly Newman                       ----------------------------

<PAGE>

                                    EXHIBIT A
                              FORM OF SUBSCRIPTION
                    (To Be Signed Only On Exercise Of Option)

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

          The  undersigned, pursuant to the provisions set forth in the attached
Option (No. L-1), hereby irrevocably elects to purchase 10,222,784 shares of the
Common  Stock  covered  by  such  Option.

     The  undersigned  herewith makes payment of the Exercise Price provided for
in  such  Option,  which  is  $1.00  in  lawful  money  of  the  United  States.

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

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

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

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

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

<PAGE>
                                    EXHIBIT B
                         FORM OF TRANSFEROR ENDORSEMENT
                    (To Be Signed Only On Transfer Of Option)

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

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

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

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

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

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

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

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

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

                                  SIGNED  IN  THE  PRESENCE  OF:

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

ACCEPTED AND AGREED:
[TRANSFEREE]

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

<PAGE>

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