Document:

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                                                                    Exhibit 4.2

                                  AMENDMENT TO
                             TUTOGEN MEDICAL, INC.
               1996 INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN

         The Board of Directors and its shareholders have approved the
following amendment to the Company's 1996 Incentive and Non-statutory Stock
Option Plan:

         3.1      Shares Subject to Plan. The stock subject to the options
granted under the Plan shall be shares of the Company's authorized but unissued
common stock, par value $.01 per share ("Common Stock"). The total number of
shares that may be issued pursuant to options granted under the Plan shall not
exceed 2,500,000 shares of Common Stock.

Date: April 27, 2000AGREEMENT FOR MANAGEMENT SERVICES
                                     BETWEEN
                       BOWLIN TRAVEL CENTERS INCORPORATED
                                       AND
            BOWLIN OUTDOOR ADVERTISING & TRAVEL CENTERS INCORPORATED

This document will confirm and constitute the agreement  ("Agreement") as of the
August 1, 2000 between Bowlin Travel Centers  Incorporated  ("BTCI")  located at
150 Louisiana NE, Albuquerque,  New Mexico 87108, and Bowlin Outdoor Advertising
& Travel Centers  Incorporated  ("BOATCI"),  136 Louisiana NE, Albuquerque,  New
Mexico  87108,  pursuant  to which  BTCI  will  furnish  to  BOATCI  management,
corporate general and administrative services (collectively known as "Management
Services"), and for which BOATCI will reimburse BTCI as provided herein.

1. BTCI agrees to perform  services for BOATCI in areas generally  considered to
be management,  corporate general and administrative services, including but not
limited to,  treasury,  accounting,  tax,  human  resources,  and other  support
services, as follows:

ACCOUNTING  SERVICES:  Accounting Services shall include, but is not limited to,
general ledger and financial statement preparation,  various financial analysis,
and accounts payable support.

EXECUTIVE MANAGEMENT SERVICES:  Executive Management Services shall include, but
is not limited to,  strategic  planning and decision  making and other customary
and usual top management functions.

HUMAN  RESOURCES,  WAGES  AND  BENEFITS  SERVICES:  Human  Resources,  Wages and
Benefits  Services  shall include,  but is not limited to,  payroll  processing,
personnel file maintenance,  recruiting,  interviewing, hiring, safety training,
counseling and labor law support.

JANITORIAL AND MAINTENANCE  SERVICES:  Janitorial and Maintenance Services shall
include,  but is not limited to,  cleaning,  general  repair,  maintenance,  and
landscape care.

MANAGEMENT  INFORMATION SYSTEM SERVICES:  Management Information System Services
shall  include,  but is not limited to, local area network  system  services and
support,  software  services and support,  and  telephone  network and equipment
maintenance.

OUTSIDE PROFESSIONAL SERVICES:  Outside Professional Services shall include, but
is not limited to, investor relations, legal and outside accounting services.

RECEPTIONIST  SERVICES:  Receptionist Services shall include, but is not limited
to, telephone answering and messaging.

SHIPPING,  RECEIVING AND OFFICE SUPPLY SERVICES:  Shipping, Receiving and Office
Supply Services shall include, but is not limited to, shipping, receiving, FedEx
and UPS tracking and office supply services.

2. BOATCI  agrees to reimburse  BTCI for the  Management  Services  performed on
behalf of BOATCI. Payment for this service shall be made monthly. The amount due
each month  from  BOATCI  shall be  determined  by BTCI based on actual  amounts
incurred  on behalf of BOATC as well as a  proportionate  amount of the  overall
general and  administrative  expenses based on the level of effort  necessary to
provide  such  services.  The  payment  for this  service  shall be known as the
Management Fee and shall be payable in full, upon demand by BTCI.

3. The term of this agreement  shall be  month-to-month  effective from the date
first  stated  herein.  Upon thirty (30) days written  notice,  either party may
terminate this Agreement.
<PAGE>
AGREED AND ACCEPTED: The foregoing correctly sets forth our mutual understanding
and is hereby accepted and approved by the signatories shown below.

Bowlin Travel Centers Incorporated      Bowlin Outdoor Advertising & Travel
                                        Centers Incorporated

By: Michael L. Bowlin                   By: Michael L. Bowlin
    -------------------------------         ------------------------------------

Title: Chairman, President and CEO      Title: Chairman, President and CEO

Date:                                   Date:
     -------------------------------         -----------------------------------Distributor  Franchise  Agreement,  dated  as of  July  19,  1995,  between  the
Registrant and CITGO Petroleum Corporation

                         DISTRIBUTOR FRANCHISE AGREEMENT

Between CITGO Petroleum Corporation and BOWLIN'S INCORPORATED

                                     NOTICE

As a Franchised  Distributor,  under this  agreement you will be entitled to the
Protections  of the Petroleum  Marketing  Practices Act, a federal law which was
enacted on June 19, 1978. Title I of this law is intended to protect you against
any arbitrary or  discriminatory  termination or non-renewal of your  Franchise.
CITGO Petroleum Corporation,  as a Franchisor, is required to provide you with a
summary  of  title  I  of  the  Petroleum   Marketing   Practices  Act  whenever
notification of termination or non-renewal of your franchise is given.  However,
CITGO  wishes to ensure that you are totally  familiar  with your rights in this
regard even prior to executing this Franchise Agreement.  Accordingly, on page i
through iii herein we have  produced the concise  summary of the  provisions  of
Title I as prepared  and  published  by the  secretary  of energy in the Federal
Register.  Please review this summary  carefully.  You should  resolve with your
lawyer or other  appropriate  parties any  questions  you might  have,  prior to
executing this franchise.

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                             OFFICE OF THE SECRETARY
                       SUMMARY OF TITLE I OF THE PETROLEUM
                             MARKETING PRACTICES ACT

AGENCY: Department of Energy.

ACTION: Notice

SUMMARY:  This notice  contains a summary of title I of the Petroleum  Marketing
Practices  Act, a new Federal law enacted on June 19. 1978.  The law is intended
to  protect  franchised  distributors  and  retailers  of  gasoline  and  diesel
motor-fuel  against  arbitrary or  discriminatory  termination or non-renewal of
franchises.  The summary  describes  the  reasons  for which a franchise  may be
terminated  or  not  renewed  under  the  new  law,  the   responsibilities   of
franchisors.  and the remedies and relief available to franchisees.  Franchisors
must give franchisees  copies of their summary contained in this notice whenever
notification of termination or nonrenewal of a franchise is given.

FOR FURTHER INFORMATION CONTACT:

     William C. Lane,  Jr.,  Office of  Competition.  Department  of Energy.  20
     Massachusetts Avenue NW., Room 7123. Washington,  D.C.  20845,202-376-9495.
     Michael Paige or Judith H. Garfield, Office of General Counsel,  Department
     of Energy,  12th and Pennsylvania Avenue NW., Room 5134,  Washington,  D.C.
     20461, 202-566-9565 or 202-566-2085.

SUPPLEMENTARY  INFORMATION:  Title I of the Petroleum  Marketing  Practices Act.
Pub-  L.  95-297  (the  "Act"),  enacted  on June  19,  1978,  provides  for the
protection   of  franchised   distributors   and  retailers  of  motor  fuel  by
establishing  minimum Federal standards  governing the termination of franchises
and the nonrenewal of franchise  relationships  by the franchisor or distributor
of such fuel. Section 104(d)(1) of the Act provides that the Secretary of Energy
shall prepare and publish in the FEDERAL REGISTER.  not later than 30 days after
enactment of the Act, a simple and concise summary of the provisions of title 1,
including a statement of the  respective  responsibilities  of; and the remedies
and relief available to. franchisors and franchisees. under that title.

     As required by section  104(d)(1)  of the Act,  the  following is a summary
statement  of the  respective  responsibilities  of. and the remedies and relief
available to. franchisors and franchisees.  Franchisors must give copies of this
summary  statement to their  franchisees when entering an agreement to terminate
the  franchise  or of to renew  the  franchise  relationship,  and  when  giving
notification  of termination  or  nonrenewal.  In addition to the summary of the
provisions of title 1, a more detailed  description of the definition  contained
in the Act and of the legal  remedies  available to franchisees is also included
in this notice, following the summary statement.

                                     NOTICES
                        SUMMARY OF LEGALS RIGHTS OF MOTOR
                                 FUEL FRANCHISES

     This is a summary of the  franchise  protection  provisions  of the Federal
Petroleum  Marketing  Practices  Act.  This  summary  must be given to you. as a
person holding a franchise for the sale. consignment or distribution of gasoline
or diesel motor fuel. in connection  with any  termination or nonrenewal of your
franchise  by your  franchising  company  (referred  to in this  summary as your
supplier).

     The  franchise  protection  provisions  of the Act  apply to a  variety  of
franchise  arrangements- The term "franchise" is broadly defined as a license to
use a motor fuel  trademark  which is owned or controlled  by a refiner,  and it
includes  secondary  arrangements such as leases of real property and motor fuel
supply agreements which have existed  continuously since May 15, 1973 regardless
of a subsequent  withdrawal of a trademark.  Thus, if you have lost the use of a
trademark  previously  granted by your  supplier  but have  continued to receive
motor fuel  supplies  through a  continuation  of a supply  agreement  with your
supplier, you are protected under the Act.

     You should read this summary carefully,  and refer to the act if necessary,
to determine  whether a proposed  termination or nonrenewal of your franchise is
lawful,  and what legal  remedies are available to you if you think the proposed
termination  or failure to renew is not lawful.  In addition.  if you think your
supplier  has failed to comply with the Act. you may wish to consult an attorney
in order to enforce your legal rights.

     The Act is intended to protect  you,  whether  you are a  distributor  or a
retailer,  from  arbitrary of  discriminatory  termination or nonrenewal of your
franchise  agreement.  To accomplish  this,  the Act first lists the reasons for
which  termination  or  nonrenewal is permitted.  Any notice of  termination  or
nonrenewal  must state the precise  reason,  as listed in the Act, for which the
particular  termination or nonrenewal is being made. These reasons are described
below under the headings "Reasons for Termination" and "Reasons for Nonrenewal."

     You should note that the Act does not  restrict  the  reasons  which may be
given for the termination of a franchise  agreement entered into before the June
19, 1978 effective date of the Act. However. any nonrenewal of such a terminated
franchise must be based on one of the reasons for nonrenewal summarized below.

     The Act also  requires  your  supplier  to give  you a  written  notice  of
termination or intention not to renew the franchise within certain time periods.
These requirements are summarized below. under the heading "Notice  Requirements
for Termination or Nonrenewal."

     The Act allows trial and interim franchise agreements,  which are described
below under the heading "Trial and Interim  Franchises  "below under the heading
"Trial and Interim Franchises."

     The Act gives you certain legal rights if your supplier  terminates or does
not renew your  franchise in a way that is not permitted by the Act. These legal
rights are described below under the heading .. "Your Legal Rights."

     This summary is intended as a simple and concise description of the general
nature of your rights under the Act. For a more  detailed  description  of these
rights, You should read the text of the Petroleum Marketing Practices Act itself
(Pub. L. 95-297. 92 Stat. 322. 15 U.S.C. 2801).

                           1. REASONS FOR TERMINATION

     The  following  is a list of the only  reasons for which your  franchise is
permitted  to be  terminated  by the Act.  One or more of these  reasons must be
specified  if your  franchise  was entered into on or after June 19, 1978 and is
being  terminated.  If your  franchise was entered into before June 19, 1978. as
discussed above,  there is no statutory  restriction on the reasons for which it
may be terminated. If such a franchise is terminated,  however, the Act required
the  supplier  to renew the  franchise  relationship  unless one of the  reasons
listed  under  this  heading or one of the  additional  reasons  for  nonrenewal
described below under the heading "Reasons for Nonrenewal" exists.

     If your supplier  attempts to terminate a franchise  which you entered into
on or after June 19.  1978 for a reason that is not listed  under this  heading.
you can take the legal action  against  your  supplier  that is described  below
under the heading "Your Legal Rights."

     Noncompliance  with franchise  agreement.  Your supplier may terminate your
franchise if you do not comply with a reasonable  and important  requirement  of
the franchise relationship. In order to use this reason, your supplier must have
learned of this non-compliance  recently.  The Act limits the time period within
which your supplier must have learned of your non-compliance to various periods.
the  longest  of which is 120  days.  before  you  receive  notification  of the
termination.

     Lack of good faith  efforts.  Your supplier may terminate your franchise if
you have not made  good  faith  efforts  to carry  out the  requirements  of the
franchise,  provided  you are not first  notified  in  writing  that you are not
meeting a requirement  of the franchise and you are given an opportunity to make
a -good faith  effort to carry out the  requirement.  This reason can be used by
your  supplier  only if you fail to make  good  faith  efforts  to carry out the
requirements  of the franchise for a period of 180 days before you,  receive the
notice of termination.

     Mutual agreement to terminate the franchise.  A franchise can be terminated
by an agreement  in writing  between you and your  supplier if the  agreement is
entered into not more than 180 days before the effective date of the termination
and you receive a copy of this agreement,  together with  this Summary statement

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<PAGE>
of your rights under the Act. You may cancel the agreement to terminate within 7
days after you receive a copy of the agreement. by mailing (by certified mail) a
written statement to this effect to your supplier.

     Withdrawal from the market area. Under certain conditions.  the Act permits
your supplier to terminate your  franchise if your supplier is withdrawing  from
marketing  activities in the entire  geographic  area in which you operate.  You
should read the Act for a more  detailed  description  of the  conditions  under
which market withdrawal terminations are permitted.

     Other events  permitting a termination.  If your supplier learns within the
time period  specified  in the Act (which in no case is more than 120 days prior
to the termination  notice) that one of the following events has occurred,  your
supplier may terminate your franchise agreement:

     (1) Fraud or criminal  misconduct  by you that relates to the  operation of
your marketing premises.

     (2) You declare bankruptcy or a court determines that you are insolvent.

     (3) You have a severe  physical  or mental  disability  lasting  at least 3
months which makes you unable to provide for the continued  proper  operation of
the marketing premises.

     (4) Expiration of your supplier's  underlying lease to the leased marketing
premises,  if you were given written  notice before the beginning of the term in
the franchise of the duration of the  underlying  lease and that the  underlying
lease might expire and not be renewed during the term of the franchise.

     (5) Condemnation or other taking by the government,  in whole or in part of
the  marketing  premises  pursuant  to  the  power  of  eminent  domain.  If the
termination is based on a condemnation or other taking.  your supplier must give
you a fair share of any compensation  which he receives for any loss of business
opportunity or good will,

     (6) Loss of your supplier's right to grant the use of the trademark that is
the subject of the  franchise.  unless the loss was because of bad faith actions
by your supplier  relating to trademark abuse violation of Federal or State law,
or other fault or negligence.

     (7) Destruction  (other than by your supplier) of all or a substantial part
of your marketing premises.  If their termination is based on the destruction of
the  marketing  premises  and if the  premises  are  rebuilt or replaced by your
supplier and operated under a franchise.  your supplier must give you a right of
first refusal to this new franchise.

     (8) Your  failure to make  payments  to your  supplier of any sums to which
your supplier is legally entitled.

     (9) Your failure to operate the marketing  premises for 7 consecutive days,
or any shorter period of time which taking into account facts and circumstances,
amounts to an unreasonable period of time not to operate.

     (10) Your  intentional  adulteration.  mislabeling  or misbranding of motor
fuels or other trademark violations.

     (11)  Your  failure  to  Comply  with  Federal.  State.  or  local  laws or
regulations  of which you have knowledge and that relate to the operation of the
marketing premises.

     (12) Your conviction of any felony involving moral turpitude.

     (13) Any event that affects the franchise  relationship  and as a result of
which termination is reasonable.

                           II. REASONS FOR NONRENEWAL

     If your  supplier  gives  notice  that he does  not  intend  to  renew  any
franchise  agreement.  the act requires that the reason for  nonrenewal  must be
either one of the reasons for termination  listed  immediately  above. or one of
the reasons for nonrenewal listed below.

     Failure to agree on  changes or  additions  to  franchise.  If you and your
supplier  fail to agree to changes in the  franchise  that your supplier in good
faith has determined are required. and your supplier's insistence on the changes
is not for the purpose of preventing renewal of the franchise. your supplier may
decline to renew the franchise.

     Customer  complaints.  If your  supplier  has  received  numerous  customer
complaints  relating  to the  condition  of your  marketing  premises  or to the
conduct of any of your employees,  and you have failed to take prompt corrective
action after having been notified of these complaints, your supplier may decline
to renew the franchise.

     Unsafe or unhealthful operations.  If you have failed repeatedly to operate
your  marketing  premises in a clean.  safe and healthful  manner after repeated
notices from your supplier. your supplier may decline to renew the franchise.

     Operation of franchise is uneconomical.  Under certain conditions specified
in the act.  your  supplier  may  decline  to  renew  your  franchise  if he has
determined  that  renewal of the  franchise is likely to be  uneconomical.  Your
supplier may also  decline to renew your  franchise if he has decided to convert
your marketing  premises to a use other than for the sale of motor fuel. to sell
the premises. or to materially alter, add to, or replace the premises.

                          III. NOTICE REQUIREMENTS FOR
                            TERMINATION OR NONRENEWAL

     The following is a  description  of the  requirements  for the notice which
your supplier must give you before he may terminate your franchise or decline to
renew  your  franchise  relationship.  These  notice  requirements  apply to all
franchise  terminations,  including franchises entered into before June 19. 1978
and trial and interim  franchises.  as well as to all  nonrenewals  of franchise
relationships.

     How much notice is required.  In most cases.  your  supplier  must give you
notice of termination  or nonrenewal at least 90 days before the  termination or
nonrenewal takes effect.

     In circumstances where it would not be reasonable for your supplier to give
you 90 days  notice,  he  must  give  you  notice  as  soon as he can do so.  In
addition. if the franchise involves leased marketing premises. your supplier may
not establish a new franchise  relationship involving the same premises until 30
days after  notice was given to you or the date the  termination  or  nonrenewal
takes effect.  whichever is later.  If the  franchise  agreement  permits.  your
supplier may repossess the premises  and. in reasonable  circumstances.  operate
them through his employees or agents.

     If the termination or nonrenewal is based upon a determination  to withdraw
from the marketing of motor fuel in the area. your supplier must give You notice
at least 180 days before the termination or nonrenewal takes effect.

     Manner and contents of notice.  To be valid.  the notice must be in writing
and must be sent by  certified  mail or  personally  delivered  to you.  It must
contain:

     (1) A statement of your supplier's  intention to terminate the franchise or
not to renew the  franchise  relationship.  together  with his  reasons for this
action:

     (2) The date the termination or nonrenewal takes effect: and

     (3) A copy of this summary.

                   IV. TRIAL FRANCHISES AND INTERIM FRANCHISES

     The following is a description  of the special  requirements  that apply to
trial and interim franchises.

     Trial  franchises.  A trial  franchise is a  franchise,  entered into on or
after June 19. 1978. in which the franchisee has not previously  been a party to
a franchise with the franchisor and which has an initial term of 1 year or less.
A  trial  franchise  must be in  writing  and  must  make  certain  disclosures,
including  that it is a trial  franchise.  and that the franchisor has the right
not to renew the franchise relationship at the end of the initial term by giving
the franchisee proper notice.

     The  unexpired  portion  of a  transferred  franchise  (other  than a trial
franchise.  as described  above) does not qualify as  described  above) does not
qualify as a trial franchise.

     In  exercising  his right not to renew a trial  franchise at the end of its
initial term. your supplier must comply with the notice  requirements  described
above under the heading "Notice Requirements for Termination or Nonrenewal."

     Interim franchises. An interim franchise is a franchise, entered into on or
after June 19, 1978, the duration of which,  when combined with the terms of all
prior interim  franchises  between the franchisor and the  franchisee.  does not
exceed 3 years.  and which begins  immediately  after the  expiration of a prior
franchise  involving the same marketing  premises  which was not renewed.  based
upon a  lawful  determination  by the  franchisor  to  withdraw  from  marketing
activities in the geographic area in which the franchisee operates.

     An interim franchise must be in writing and must make certain  disclosures.
including that it is an interim  franchise and that the franchisor has the right

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not  to  renew  the  franchise  at  the  end of the  term  based  upon a  lawful
determination  to withdraw from marketing  activities in the geographic  area in
which the franchisee operates.

     In  exercising  his right not to renew a  franchise  relationship  under an
interim  franchise at the end of its term,  your  supplier  must comply with the
notice requirements  described above under the heading "Notice  Requirements for
Termination or Nonrenewal."

                              V. YOUR LEGAL RIGHTS

     Under the enforcement  provision of the Act, you have the right to sue your
supplier if he fails to comply with the  requirements of the Act. The courts are
authorized to grant whatever equitable relief is necessary to remedy the effects
of your supplier's failure to comply with the requirements of the Act, including
or judgment,  mandatory or prohibitive  injunctive relief. and interim equitable
relief.   Actual   damages,   exemplatry   (punitive)   damages   under  certain
circumstances  and  reasonable   attorney  and  expert  witness  fees  are  also
authorized.  For a more detailed  description of these legal remedies you should
read the text of the Act.

          FURTHER DISCUSSION OF TITLE I DEFINITIONS AND LEGAL REMEDIES

                                 1. DEFINITIONS

     Section 101 of the Petroleum Marketing Practices Act sets forth definitions
of the key terms used throughout the franchise protection provisions of the Act.
The definitions from the Act which are listed below are of those terms which are
most  essential for purposes of the  foregoing  summary  statement.  (You should
consult section 101 of the Act for addition of definitions not included here.)

     Franchise. A franchise is any contract between a refiner and a distributor,
between a refiner and a retailer, between a distributor and another distributor,
between a distributor  and a retailer.  under which a refiner or distributor (as
the case may be)  authorizes  or permits a retailer  or  distributor  to use, in
connection  with  the  sale,  consignment,  or  distribution  of motor  fuel,  a
trademark  which is owned or  controlled  by such refiner or by a refiner  which
supplies motor fuel to the distributor which authorizes or permits such use.

     The term  "franchise"  includes  any  contract  under  which a retailer  or
distributor  (as the case may be) is  authorized  or permitted to occupy  leased
marketing  premises,  which  premises are to be employed in connection  with the
sale.  consignment,  or  distribution  of motor fuel under a trademark  which is
owned or controlled by such refiner or by a refiner which supplies motor fuel to
the  distributor  which  authorizes  or permits  such  occupancy.  The term also
includes  any  contract  pertaining  to the  supply of motor fuel which is to be
sold.  consigned  or  distributed  under a trademark  owned or  controlled  by a
refiner. or under a contract which has existed  continuously since May 15. 1973.
and  pursuant  to which.  on May 15.  1973.  motor fuel was sold.  consigned  or
distributed under a trademark owned or controlled on such date by a refiner. The
unexpired portion of a transferred  franchise is also included in the definition
of the term.

     Franchise  relationship.  The term "franchise  relationship"  refers to the
respective motor fuel marketing or distribution obligations and responsibilities
of a franchisor  and a franchisee  which result from the marketing of motor fuel
under a franchise.

     Franchisee.  A franchisee is a retailer or distributor who is authorized or
permitted   under a franchise   to use a trademark in connection  with the sale.
consignment. or distribution of motor fuel.

     Franchisor.  A franchisor  is a refiner or  distributor  who  authorizes or
permits.  under a  franchise.  a retailer or  distributor  to use a trademark in
connection with the sat . e. consignment. or distribution of motor fuel.

     Marketing  premises.  Marketing  premises are the premises  which,  under a
franchise.  are to be employed by the  franchisee in  connection  with the sale.
consignment. or distribution of motor fuel.

     Leased Marketing premises. Leased marketing premises are marketing premises
owned, leased, or in any way controlled by a franchisor and which the franchisee
is authorized or permitted.  under the franchise.  to employ in connection  with
the sale. consignment. or distribution of motor fuel.

     Fail to renew and  nonrenewal.  The terms "fail to renew" and  "nonrenewal"
refer to a failure to reinstate,  continue,  or extend a franchise  relationship
(1) at the  conclusion of the term,  or on the  expiration  date,  stated in the
relevant franchise,  (2) at any time, in the case of the relevant which does not
state a term of duration or an  expiration  date, or (3) following a termination
(on or after June 19,  1978) of the  relevant  franchise  which was entered into
prior to June 19, 1978 and has not been renewed after such date.

                         II. LEGAL REMEDIES AVAILABLE TO
                                   FRANCHISEE

     The following is a more detailed  description of the remedies  available to
the  franchisee  if a franchise is terminated or not renewed in a way that fails
to comply with the Act.

     Franchisee's  right to sue. A franchisee may bring a civil action in United
States  District  Court  against  a  franchisor  who  does not  comply  with the
requirements  of the Act.  The action must be brought  within one year after the
date of  termination  or nonrenewal or the date the  franchisor  fails to comply
with the requirements of the law. whichever is later.

     Equitable relief.  Courts are authorized to grant whatever equitable relief
is  necessary  to remedy the effects of a violation  of the law's  requirements.
Courts are directed to grant a preliminary  injunction if the  franchisee  shows
that there are sufficiently serious questions,  going to the merits of the case,
to make them a fair  ground for  litigation,  and if, on balance.  the  hardship
which the, franchisee would suffer if the preliminary  injunction is not granted
will be greater  than the  hardship  which the  franchisor  would suffer if such
relief is granted.

     Courts are not required to order  continuation  or renewal of the franchise
relationship if the action was brought after the expiration of the period during
which the franchisee  was on notice  concerning  the  franchisor's  intention to
terminate or not renew the franchise agreement.

     Burden of proof.  In an action under the Act. the franchisee has the burden
of proving that the franchise was terminated or not renewed.  The franchisor has
the burden of  proving,  as an  affirmative  defense,  that the  termination  or
nonrenewal was permitted  under the Act and, if applicable,  that the franchisor
complied  with  certain  other   requirements   relating  to  terminations   and
nonrenewals based on condemnation or destruction of the marketing premises.

     Damages. A franchise who prevails in an action under the Act is entitled to
actual  damages and  reasonable  attorney and expert witness fees. If the action
was based upon conduct of the franchisor  which was in willful  disregard of the
law's  requirements  or  the  franchisee's   rights  under  the  law,  exemplary
(Punitive)  damages may be awarded  where  appropriate.  The court,  and not the
jury. will decide whether to award exemplary damages and, if so, in what amount.

     On the other  hand,  if the court  finds  that the  franchisee's  action is
frivolous,  it may order the  franchisee to pay  reasonable  attorney and expert
witness fees.

     Franchisor's defense to permanent injunctive relief. Courts may not order a
continuation or renewal of a franchise relationship if the franchisor shows that
the basis of the nonrenewal of the franchise  relationship  was a  determination
made in good faith and in the normal course of business:

     (1) To convert the leased  marketing  premises to a use other than the sale
or distribution of motor fuel:

     (2) To materially alter. add to. or replace such premises:

     (3) To sell such premises:

     (4) To withdraw from marketing  activities in the geographic  area in which
such premises are located: or

     (5) That renewal of the franchise relationship is likely to be uneconomical
to the franchisor  despite any reasonable  changes or additions to the franchise
provisions which may be acceptable to the franchisee.

     In making this defense,  the franchisor also must show that he has complied
with the notice requirements of the Act.

     This defense to to permanent  injunctive relief,  however,  does not affect
the  franchisee's  right to recover actual  damages and reasonable  attorney and
expert witness fees if the nonrenewal is otherwise prohibited under.

     Issued in Washington. D.C. on August 23, 1978.

                                        JOHN F. O'LEARY.
                                        Deputy Secretary.

                                        4
<PAGE>
                         DISTRIBUTOR FRANCHISE AGREEMENT

     It  is  agreed  this  19th  day  of  July,  1995  between  CITGO  Petroleum
Corporation,  a Delaware  corporation,  having a place of business at One Warren
Place, Box 3758, Tulsa, Oklahoma, 74102, hereinafter called "CITGO,"

                                    and   BOWLIN'S INCORPORATED
                                          --------------------------------------

                                          --------------------------------------
                                      a   New Mexico
                                          --------------------------------------

         corporation, having a principal
         office and place of business at  150 LOUISIANA BLVD N.E
                                          --------------------------------------

                                          ALBUQUERQUE, NM     87108
                                          --------------------------------------
                    hereinafter called    "FRANCHISEE."

                                   WITNESSETH:

     WHEREAS,  CITGO  and  Franchisee  intend  by this  Agreement  to  create  a
"franchise relationship" within the meaning of the Petroleum Marketing Practices
Act;  the  parties  expressly  do not  intend  by this  Agreement  to  create  a
"franchise" within the meaning of any state law relating to franchises; and

     WHEREAS,  CITGO and Franchisee desire to provide for Franchisee's  purchase
from CITGO of certain petroleum  products for resale by Franchisee under CITGO's
trademark to consumers and retailers in a manner that will serve the interest of
the consuming public and be of benefit to CITGO and Franchisee;

     NOW, THEREFORE, CITGO and Franchisee agree as follows:

1. TERM.  This  Agreement  shall be  effective  for the term of three (3) years,
beginning  10/1/95 and expiring on 9/30/98.  Unless  validly  terminated  or non
renewed as provided for in the Petroleum Marketing Practices Act, this Agreement
shall automatically renew for successive three (3) year periods.

2.  QUANTITIES.  Franchisee  shall purchase and accept  hereunder  quantities of
products  as set forth below  during the  respective  monthly  periods and CITGO
shall  sell  and  deliver  the  specified  quantities  of  products  during  the
respective monthly periods.  Franchisee hereby  acknowledges and agrees that the
purchase  and ratable  lifting of the monthly  quantities  of product  specified
herein by Franchisee are reasonable,  important and of material  significance to
the franchise  relationship.  Franchisee understands and agrees that any failure
by  Franchisee  to purchase and accept a minimum of ninety  percent (90%) of the
monthly  quantity of gasoline or diesel fuel listed  below during any month on a
ratable basis shall be a violation of this Agreement.  Franchisee shall have the
right to  purchase  up to one  hundred  and ten  percent  (110%) of the  monthly
quantity of gasoline and/or diesel fuel as set forth below. However, CITGO shall
have no  obligation at any time to provide more than one hundred and ten percent
(1 10%) of such volumes during any month. The monthly  quantities of product set
forth below are based on the sales of motor fuels projected by the Franchisee at
locations  that CITGO has approved  for  branding  with the CITGO trade name and
trademark.  In the event that CITGO agrees to brand  additional  locations,  the
monthly quantities of products set forth below shall  automatically be increased
by the projected sales of motor fuels at the newly branded locations.  Likewise,
if any location is debranded,  the monthly quantities of product set forth below
shall automatically be decreased by the projected sales at such formerly branded
location. These automatic  increases/decreases shall be effective beginning with
the month in which the  installation,  or removal and return,  of the CITGO sign
and  equipment  is  completed,  and shall be  confirmed  by an Amendment to this
Agreement.  Franchisee  and CITGO  agree that they will  review the  addition or
deletion of branded outlets at least on an annual basis.  Franchisee agrees that
the  monthly  quantity of gasoline  set forth  below shall be  purchased  and be
lifted on a ratable basis during the month in the following ratio:

         Unleaded Regular  075      %       Mid-grade Unleaded     010        %
                          -----------                             -------------

         Premium Unleaded  015      %                                         %
                          ----------        ------------------    -------------

                                        5
<PAGE>
Franchisee  shall have the right to request a variation of the ratio of gasoline
grades set forth above by making a written request to CITGO.  Timely requests to
modify the  gasoline  grade  ratio  shall be honored by CITGO to the best of its
ability.

                                          GASOLINE
                                          --------
        January                            150,000
        February                           150,000
        March                              175,000
        April                              200,000
        May                                275,000
        June                               275,000
        July                                50,000
        August                              50,000
        September                           75,000
        October                             75,000
        November                           100,000
        December                           100,000
                                        ----------
        TOTAL                            1,675,000
                                        ==========

     Quantities  shall  be  determined  at  time  and  place  of  loading.   All
measurements with regard to deliveries into marine vessel,  pipeline or tank car
shall be corrected to 60" F. in accordance with prevailing ASTM procedures. With
respect to all other deliveries under this Agreement,  Franchisee elects to have
quantities  determined  by liquid  measure Gross  Gallons/Temperature  Corrected
(delete  inappropriate  method) method. In any jurisdiction where applicable law
dictates the method of measurement, such method shall be used.

3. DELIVERY OF PRODUCTS.  Products will be made  available at terminals or other
locations  selected  by CITGO or,  at  CITGO's  election,  may be  delivered  to
destination  by  transportation  selected by CITGO.  Franchisee  shall  strictly
comply with all applicable  rules and regulations of terminals and facilities at
which Franchisee  receives motor fuel from CITGO.  Except as otherwise  provided
herein,  deliveries shall be made in such quantities and at such times as may be
reasonably  directed by Franchisee,  subject to CITGO's right to adequate notice
in advance of desired  delivery date.  Franchisee  shall ensure that all trucks,
tankers and lines are clean and ready to receive  CITGO's  motor  fuel,  so that
said fuel is not  mixed,  blended or  adulterated  with any other  substance  or
product.  CITGO may refuse to make delivery into any vehicle which,  in the sole
judgment of CITGO,  is unsafe or inadequate.  Franchisee  agrees to provide such
proof of insurance as required by CITGO covering Franchisee's  liability for any
negligent  or  willful  acts  it  commits  in   connection   with  the  loading,
transporting  and delivery of  products.  Title and risk of loss on all products
covered  by this  Agreement  shall pass to  Franchisee  at the time and place of
delivery.  Time and  place of  delivery  shall  be when  and at the  point  that
products pass  connections  between  CITGO's  truck rack or pipeline  flange and
Franchisee or its agent's receiving connections, transport trucks, tank cars, or
vessels.

4. PRICES. Franchisee shall pay CITGO's distributor prices in effect at time and
place of  delivery.  Such  prices  will be  established  by  CITGO on an  F.O.B.
terminal basis, or other point of sale basis,  including at CITGO's election, on
a delivered  basis.  Franchisee  shall also pay CITGO amounts  equivalent to any
tax,  duty or impost now or hereafter  imposed by the United  States  and/or any
state and/or municipality, and/or any other governmental authority.

5. TERMS OF  PAYMENT.  Franchisee  agrees to pay CITGO in  accordance  with such
terms as CITGO's Credit  Department in its sole discretion may from time to time
prescribe  in  writing.  These  terms of  payment  are set  forth  on all  CITGO
invoices.  At the  present  time,  CITGO's  credit  terms are one  percent  (1%)
Electronic  Funds  Transfer (EFT) twelve (12) days. The failure by Franchisee to
pay any invoice within the terms then  prescribed by CITGO's  Credit  Department
may result in the  restriction of credit,  the denial of access to the petroleum
terminals from which  Franchisee is authorized to obtain its supply of petroleum
products,  and shall constitute  grounds for termination  and/or  non-renewal of
this Agreement.  Franchisee  agrees to provide CITGO's Credit  Department with a
current,  audited or certified financial statement within ninety (90) days after
the end of each fiscal year, and such other business related  information as may
be requested by CITGO's Credit Department from time to time.

6. BRANDS AND TRADE NAMES.  Subject to the  following,  CITGO  hereby  grants to
Franchisee,  for the term of this Agreement, the right to use CITGO's applicable
brand names, trademarks and other forms of CITGO's identification, in the manner
established  by CITGO  from  time to time,  in  connection  with the  resale  by
Franchisee of products acquired under CITGO's brand names.

                                        6
<PAGE>
     (a) CITGO  reserves the right to control  fully the quality and branding of
products which may, from time to time, be sold and/or  distributed under CITGO's
brands  and  trade  names,  including  the  right  to  terminate  or add to such
products, or to change the name or names of any products.  Franchisee shall sell
all branded products delivered hereunder under such brand names,  trademarks and
trade  names of CITGO as may be in use at the time of sale  thereof.  Franchisee
shall  not  change or alter by any  means  whatsoever  the  nature,  quality  or
appearance of any of the products purchased  hereunder.  However,  if Franchisee
elects to sell  product(s)  not  purchased  or  acquired  under this  Agreement,
Franchisee  shall  not  allow  nor  permit  the  use  of  CITGO's  brand  names,
trademarks,  trade  dress,  and all  other  forms  of CITGO  identification,  in
connection  with  the  resale  of such  product(s).  CITGO's  "brand  names  and
trademarks,"  as used  herein,  include  CITGO's  logos,  brand  identification,
product and service  advertising,  credit cards, product names and service marks
CITGO's  "trade dress" refers to the manner and style of  advertising  material,
including color graphics and art work on product labels, point of sale material,
buildings,  signs,  pumps and other  equipment.  Any other  product(s)  shall be
clearly  identified and labeled in such language.  and print at least comparable
in size to CITGO's  brand names,  trademarks,  trade  dress,  and other forms of
CITGO  identification,  used  on  identical  or  similar  product(s)  to make it
unmistakably  clear that CITGO brand product(s) are not sold and to preclude any
likelihood of confusion,  mistake or deception of the public. As an example, but
not by way of limitation,  if a Franchisee sells from a product dispenser a fuel
which was not purchased or acquired under this Agreement,  the Franchisee  shall
completely  obliterate the CITGO brand names,  trademarks,  trade dress, and all
other forms of CITGO  identification with the following  designation in print at
least comparable in size to the largest CITGO identification which is being used
on any  similar  product  dispenser:  "NO BRAND,  THIS IS NOT A CITGO  PRODUCT."
Franchisee  agrees  that  if a  customer  of the  Franchisee  requests  a  CITGO
product(s) and such product(s) is not available,  the customer of the Franchisee
will be orally  advised  by the  Franchisee  that such CITGO  product(s)  is not
available. Franchisee hereby agrees to defend, indemnify and hold CITGO harmless
from  any and all  claims,  damages,  actions  or  fines  (including  costs  and
attorneys' fees actually incurred) arising out of Franchisee's purchase, storage
or sale of non-CITGO products.

     (b)  Franchisee  recognizes  that the  identification,  trademark and brand
names of CITGO are the property of CITGO and that CITGO's requirements as herein
stated relating to the use of such identification and distributor's  advertising
(to include motor  vehicles and  dispensing  equipment)  are  reasonable  and of
material significance to the franchise relationship.  Accordingly, it is further
agreed that a failure by the  Franchisee to comply with the terms and provisions
of this Section 6 shall constitute grounds for termination and/or non-renewal of
this Agreement.

     (c) All  signs,  poles  and  identification  items  furnished  or leased to
Franchisee by CITGO, for display at premises  through which Franchisee  supplies
products for resale,  shall be erected,  installed and  maintained in accordance
with  CITGO's  specifications,  shall  remain the property of CITGO and shall be
detached by the Franchisee,  or by CITGO (at Franchisee's  expense),  at CITGO's
option,  from  the  premises  and  be  safely  stored  and  made  available  for
repossession by CITGO upon CITGO's request.  Franchisee agrees to obtain written
acknowledgment on forms satisfactory to CITGO, from the owner and/or occupant at
each  of  said  premises,   of  CITGO's  ownership  of  said  signs,  poles  and
identification  items and of the right of Franchisee or CITGO or their agents to
remove same from the  premises at any time.  Franchisee  understands  and agrees
that CITGO  identification  items will only be provided for those  premises that
fulfill CITGO's standards and requirements. Therefore, Franchisee shall not make
available or erect any such CITGO  identification items at any location that has
not been  approved in writing by CITGO nor shall  Franchisee  relocate any CITGO
identification  items without CITGO's prior written consent.  Franchisee  hereby
agrees to install all said signs, poles and  identification  items in accordance
with CITGO's  specifications  and to maintain all said equipment in good repair.
Franchisee shall bear all  responsibility for costs involved in such maintenance
and  repair  as  well  as  removal.  Franchisee  agrees  to  purchase  insurance
sufficient  to cover the repair  and/or  replacement  value of all sa7id  signs,
poles and  identification  hems. CITGO retains title and all ownership rights in
all such signs, poles and identification items.  Franchisee agrees that all such
signs,  poles and  identification  items  will  remain at the  designated  CITGO
branded  location  until such time as CITGO grants its  permission in writing to
relocate  same.  Franchisee  hereby  grants  to CITGO  the  right to enter  upon
Franchisee's  property  and each  CITGO  branded  location  for the  purpose  of
installing,   repairing,   maintaining,   or  removing  all  signs,   poles  and
identification  items at any time during reasonable  business hours.  Franchisee
further  agrees to indemnify  and hold CITGO  harmless  from any and all damages
and/or  claims  for  damages  arising  out of  the  installation,  use,  repair,
maintenance,  or removal of all signs, poles and identification  items furnished
or leased to Franchisee by CITGO.

     (d) In the event that Franchisee  terminates  this  Agreement,  or breaches
this Agreement which breach results in termination,  Franchisee  shall reimburse
CITGO for its costs and expenses,  including costs for material and installation
incurred  for  branding  Franchisee's  or its  customers'  service  stations and
convenience  stores (the "Branding  Costs").  The amount of Branding Costs to be
reimbursed  shall  be equal to the  amount  of  Branding  Costs  incurred  for a
station/store  multiplied by a fraction, the numerator being 36 minus the number
of months that the  station/store was branded CITGO subsequent to the Completion
Date and the  denominator  being 36. For purposes  herein,  the Completion  Date
shall  mean the date that the  station/store  was  approved  by CITGO as a CITGO
branded outlet.

7.  MINIMUM  STANDARDS.  Franchisee  shall  operate or cause to  operate  retail
facilities including all buildings,  equipment,  restrooms,  and driveways which
are owned, operated, supplied, leased, licensed or franchised by Franchisee in a
clean,  neat, safe, lawful and healthful manner, and not in violation of CITGO's
rules and image  standards.  CITGO  shall  have the right to  debrand or require
Franchisee to debrand any retail facility failing to meet the provisions of this
Section 7.

8.  ALLOCATION.  If CITGO,  because of a shortage of crude oil,  raw  materials,
products,  or  refining  capacity,  either of its own,  or of its other  regular
sources of supply,  or in the  industry  generally,  or because of  governmental
regulations,  or for any reason,  deems that it may be unable to meet all of its
supply requirements, CITGO may allocate its products equitably among its various
customers  pursuant  to a plan,  method or  formula as CITGO  believes  fair and
reasonable.  Franchisee  agrees to be bound by any such  allocation.  During the
period of such  allocation,  the  provisions  of  Paragraph 2 relating to volume
requirements  shall not be effective,  and the quantity  deliverable  under this
Agreement  shall then be such  quantity  as CITGO  determines  it can  equitably
allocate to Franchisee.  Upon cessation of any such period of allocation neither
CITGO nor Buyer shall be obligated to make up any quantities omitted pursuant to
the provisions herein.

9.  CLAIMS.  Any claim for defect or  variance  in quality of product  furnished
hereunder  shall be made in writing  directed to CITGO as herein provided within
five  (5) days  after  discovery  of the  defect  or  variance.  CITGO  shall be
furnished  samples  adequate to test the products  claimed to be  defective  and
shall be afforded the  opportunity  to take its own samples.  Any and all claims
not made  within  the time and in the  manner  herein  provided  shall be deemed
waived and released by the Franchisee.

                                        7
<PAGE>
10.  CREDIT  CARDS.  During  the  term of this  franchise,  Franchisee  shall be
entitled to grant credit to holders of credit cards which may be issued by CITGO
and/or  issued by other  companies  listed in CITGO's then  current  credit card
regulations, a copy of which has been provided to Franchisee. It is specifically
understood  that the  granting  of  credit  shall be  pursuant  to the terms and
conditions set forth in such credit card regulations  including that such credit
extension shall be only in conjunction, with the sale of CITGO products and that
CITGO shall have the right in its sole  discretion  to amend or  terminate  such
regulations  and  discontinue  it's credit card program at any time.  Franchisee
agrees that all credit card  invoices  which it may transmit and assign to CITGO
shall be in conformity  with CITGO's credit card  regulations and that CITGO may
reject  or  charge  back  any  credit  card  invoices  not  conforming  to  said
instructions. Franchisee further agrees that upon such rejection or charge back,
the value of the credit card invoices  which were rejected or charged back shall
become  immediately  due and owing from  Franchisee to CITGO and may be deducted
from  subsequent  checks for  payment of credit card  invoices.  All credit card
invoices  shall be forwarded by  registered  mail or other means  authorized  by
CITGO to such place(s),  and at such,  time  intervals,  as CITGO may designate,
from time to time.  Franchisee  expressly agrees that CITGO shall have the right
but not the  obligation  to apply the  proceeds of credit  card  invoices or any
other  credits  which  may be owing to  Franchisee  toward  the  payment  of any
indebtedness owed by Franchisee to CITGO.  Franchisee grants to CITGO a security
interest in all credit card invoices and proceeds from such credit card invoices
to secure the payment of product  purchases  from  CITGO,  and agrees to execute
documents reasonably necessary to perfect such security interest.

11. FORCE MAJEURE. In the event that either party hereto is hindered, delayed or
prevented  by  "force  majeure"  in  the  performance  of  this  Agreement,  the
obligation of the party so affected shall be suspended and proportionally abated
during the continuance of the force majeure  condition and the party so affected
shall not be liable in damages or otherwise for its failure to perform. The term
"force  majeure"  as used  herein  shall  mean any cause  whatsoever  beyond the
control of either party  hereto,  including,  but not limited to (a) act of God,
flood,  fire,  explosion,  war, riot,  strike and other labor  disturbance;  (b)
failure in, or inability to obtain on reasonable terms, raw materials,  finished
products,  transportation  facilities,  storage facilities and/or  manufacturing
facilities; (c) diminution,  nonexistence or redirection of supplies as a result
of  compliance  by CITGO,  voluntary  or  otherwise,  with any  request,  order,
requisition or necessity of the government or any governmental officer, agent or
representative  purporting to act under  authority,  or with any governmental or
industry rationing,  allocation or supply program;  and (d) CITGO's inability to
meet the demand for its products at CITGO's  normal and usual source  points for
supplying Franchisee, regardless of whether CITGO may have been forced to divert
certain  supplies  from such source  points in order to  alleviate  shortages at
other distribution points.

     If by reason of any force majeure condition CITGO shall be unable to supply
the  requirements  of all of  its  customers  of any  product  covered  by  this
Agreement,  CITGO's obligation while such condition exists shall, at its option,
be  reduced to the extent  necessary  in its sole  judgment  and  discretion  to
apportion  fairly and reasonably  among CITGO's  customers the amount of product
which it is able to supply.  Franchisee shall not hold CITGO  responsible in any
manner for any losses or damages which  Franchisee  may claim as a result of any
such apportionment. CITGO shall not be required to make up any deficiency in any
product not delivered as a result of any such  apportionment.  In no event shall
any force majeure  condition affect  Franchisee's  obligation to pay for product
when due.

12.  TERMINATION  AND  NON-RENEWAL  CITGO's  rights to terminate or elect not to
renew this franchise  relationship  are as specified in Title I of the Petroleum
Marketing Practices Act as same may be amended from time to time.

13.  HANDLING  OF  PRODUCTS.  (a)  Franchisee  acknowledges  that the  petroleum
products  being sold under this  franchise,  by their  nature,  require  special
precautions in handling and that Franchisee,  its employees and agents are fully
informed  as  to  governmental  regulations  and  approved  procedures  relating
thereto.  Franchisee is solely  responsible for compliance with all laws, rules,
regulations and orders relative to receiving,  transporting,  storing,  pricing,
selling and distributing  products covered hereunder.  Franchisee is also solely
responsible for the proper  disposal of waste materials  generated at any of the
Franchisee's  facilities.  Franchisee  shall also inject into the gasoline  such
additives and in such amounts as requested by CITGO.

     (b)  Franchisee   agrees  and  understands  that  the  regulations  of  the
Environmental Protection Agency require that where motor gasoline is marketed as
"unleaded  gasoline" such gasoline will not contain more than 0.05 grams of lead
per gallon at the retail level and that such  regulations may lead to imposition
of substantial  penalties whenever violations occur. CITGO hereby agrees that it
will utilize all necessary and appropriate testing procedures to ensure that the
lead  concentration  in "unleaded  gasoline"  CITGO sells to Franchisee does not
exceed legally  acceptable  limits.  Franchisee  agrees that insofar as ft sells
unleaded  gasoline  under  CITGO's  brand  name or  trademark,  Franchisee  will
regularly and  frequently  test its  transportation  means and all storage tanks
from which such  product is  dispensed  so as to ensure that the lead content of
such gasoline at no time exceeds the legal limits.  Franchisee further covenants
that insofar as its  aforementioned  tests should,  at any time reflect that the
lead content of such gasoline exceeds 0.04 grams per gallon, it will immediately
notify CITGO and take such further action with respect to said gasoline as CITGO
may request. Franchisee further agrees to comply with all applicable posting and
labeling laws and regulations,  including but not limited to those pertaining to
octane ratings, lead and oxygenates.

     (c) Franchisee  further agrees to comply or to require  compliance with all
laws, rules and  regulations,  whether  federal,  state or local,  pertaining to
underground  storage  tanks and lines  which  hold  petroleum  products  sold t6
Franchisee  pursuant  to this  Agreement  including  but not limited to those of
financial responsibility and/or pollution insurance requirements.

     (d) Franchisee further agrees to indemnify and hold CITGO harmless from any
and all damages  and/or claims for damages  arising out of any violation of this
Section 13.

14. INDEMNITY.

     (a) Franchisee  hereby releases and agrees to indemnify and hold CITGO, its
agents, servants,  employees,  successors and assigns, harmless from and against
any and all claims,  suits,  losses,  obligations,  liabilities,  injuries,  and
damages,  including attorneys' fees and costs of litigation, for death, personal
injury,  property damage or other claim arising out of any failure by Franchisee
to perform,  fulfill or observe any  obligation or liability of  Franchisee  set
forth  herein or any  negligent  act or omission by  Franchisee  or any cause or
condition of any kind directly or indirectly arising in connection with the use,
occupancy, maintenance, upkeep, repair, replacement or operation of any place of
business,  service station or marketing  premises  (including but not limited to
adjacent  sidewalks,  drives,  curbs,  signs,  poles and all other  fixtures and
equipment located thereon) which place of business, service station or marketing
premise  is or was  either  directly  or  indirectly  owned,  leased,  operated,
supplied, franchised, or licensed by or through Franchisee.

                                        8
<PAGE>
     (b) Franchisee  hereby releases and agrees to indemnify and hold CITGO, its
agents, servants,  employees,  successors and assigns, harmless from and against
any and all claims, suits, losses, injuries,  liabilities and damages, including
attorneys' fees and costs of litigation,  resulting from the shipment, delivery,
use,  storage,  handling,  and sale of petroleum  products,  including,  but not
limited  to,  the  seepage  or leakage  of any  petroleum  products  and fire or
explosion  at any place of  business,  service  station or  marketing  premises,
including,  but not  limited  to, the storage  tanks,  piping and pumps  located
thereon which place of business, service station or marketing premises is or was
either directly or indirectly owned, leased, operated,  supplied,  franchised or
licensed by or through Franchisee.

     (c)  Franchisee  shall  defend,  indemnify  and  hold  CITGO,  its  agents,
servants,  employees,  successors  and  assigns,  harmless  from and against any
fines, penalties, taxes, judgments,  charges, or expenses, (including attorneys'
fees  and  costs  of  litigation),  for  violations  of any  law,  ordinance  or
regulation  caused by any act or omission.  whether  negligent or otherwise,  of
Franchisee or its agents. servants, employees, contractors, dealers, franchisees
or licensees.

     (d)  Notwithstanding  the  foregoing  provisions,  Franchisee  will  not be
responsible for violations of any law, ordinance or regulation by CITGO, nor for
any acts or omissions  arising from the sole negligence of CITGO, its agents, or
employees.

15.  INSURANCE.  (a) Franchisee  shall obtain and maintain,  at its own expense,
insurance through an insurer acceptable to CITGO. Such insurance shall include:

(1)  Worker's  Compensation  Insurance  covering  Franchisee's  employees;   and
Employer's  Liability  Insurance  with a minimum limit of FIVE HUNDRED  THOUSAND
DOLLARS ($500,000) per occurrence.

(2) Commercial General Liability Insurance,  including contractual liability and
products-completed  operations liability,  explosion, and collapse liability, as
well as  coverage  on all  contractor's  equipment  (other  than motor  vehicles
licensed for highway use) owned, hired, or used in performance of this Agreement
having a minimum combined single limit of ONE MILLION DOLLARS  ($1,000,000) each
occurrence (or the equivalent)  for bodily injury and property damage  including
personal injury.

(3) Automobile Liability Insurance, including contractual liability covering all
motor vehicles owned, hired, or used in the performance of this Agreement,  with
a  minimum  combined  single  limit of ONE  MILLION  DOLLARS  ($1,000,000)  each
occurrence (or the equivalent) for bodily injury and property damage.

     (b) The  foregoing  are  minimum  insurance  requirements  only and may not
adequately meet the entire insurance needs of Franchisee.  Franchisee shall list
CITGO as an additional insured on all insurance policies described in subsection
(2) and (3) above and such  insurance  shall not be subject  to other  insurance
clauses.  Franchisee  shall furnish to CITGO upon request with  certificates  of
insurance  acceptable to CITGO, which provide that coverage will not be canceled
or materially  changed prior to thirty (30) working days' advance written notice
to CITGO.

     (c) Franchisee  shall require its dealers,  who are handling CITGO product,
to maintain the insurance described herein.

16. ASSIGNMENT/TRANSFER. This Agreement may not be assigned by Franchisee except
with CITGO's prior written consent which will not be unreasonably  withheld.  In
the event more than  thirty-five  percent  (35%) of the  ownership  interest  of
Franchisee's business is sold, transferred, or otherwise disposed of, then CITGO
reserves the right to deem such a transfer an attempt to assign this  Agreement.
In any  event,  Franchisee  must  notify  CITGO  thirty  (30) days  prior to the
transfer of any ownership interest in Franchisee's business.

17.  RELATIONSHIP  OF  THE  PARTIES.  Franchisee  is an  independent  contractor
operating an  independent  business and is not  authorized to act as an agent or
employee of CITGO or to make any commitments or incur any expense or obligations
of any kind on behalf of CITGO, unless expressly authorized by CITGO in writing.

18. GENERAL PROVISIONS. This Agreement shall bind the executors, administrators,
personal representatives,  assigns and successors of the respective parties. The
right of either party to require strict performance by the other party hereunder
shall not be affected by any previous waiver,  forbearance or course of dealing.
No delay or  omission of CITGO in  exercising  or  enforcing  any right or power
accruing upon any breach of this  Agreement by Franchisee  shall impair any such
Light or  power,  or shall be  construed  to be a waiver  of any  breach of this
Agreement, or any acquiescence therein. All notices hereunder shall be deemed to
have been  sufficiently  given if and when presented or mailed by certified mail
to the  parties  at the  addresses  above  or  such  other  addresses  as may be
furnished  to the other in writing by certified  mail.  All  understandings  and
agreements  relating  to the subject  matter  hereof  either  verbal or written,
except  insofar as  incorporated  in this  Agreement,  are hereby  canceled  and
withdrawn.  CITGO has made no promises,  claims or representations to Franchisee
which are not contained in this Agreement. This Agreement constitutes the entire
agreement of the parties with  respect to the subject  matter  hereof and may be
altered only by writing signed by the parties  hereto.  This Agreement shall not
be binding  upon CITGO until it has been duly  accepted by CITGO as evidenced by
the signature of its Vice President or other authorized  designee.  Commencement
of dealing between the parties shall not be deemed a waiver of this requirement.
This Agreement shall be governed by the laws of the State of Oklahoma.

IN WITNESS WHEREOF,  the parties have caused this instrument to be duly executed
the day and year first above written.

                                        CITGO PETROLEUM CORPORATION

Firm: BOWLIN'S INCORPORATED

By /s/ Michael L. Bowlin                By /s/ Signature Illegible
   --------------------------------        -------------------------------------
   Title: President                        Title: Region Manager

/s/ Nina J. Pratz                          /s/ Signature Illegible
-----------------------------------        -------------------------------------
             Witness                                     Witness

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