Document:

EXHIBIT 10.1

                               HOWELL CORPORATION
                         NONQUALIFIED STOCK OPTION PLAN
                           FOR NON-EMPLOYEE DIRECTORS

      SECTION 1. Purpose.  The purpose of this HOWELL  CORPORATION  NONQUALIFIED
STOCK OPTION PLAN FOR NON-EMPLOYEE  DIRECTORS  ("Plan") is to attract and retain
the services of experienced and knowledgeable  non-employee directors for Howell
Corporation,   a  Delaware   corporation  (the  "Company"),   and  provide  such
non-employee  directors an opportunity for ownership of common stock,  $1.00 par
value ("Common  Stock"),  of the Company.  Options to be granted under this Plan
will be  nonqualified  options  which are not  intended to qualify as  Incentive
Stock Options  pursuant to Section 422 of the Internal  Revenue Code of 1986, as
amended ("Code").

      SECTION 2.  Administration  of the Plan. The Plan shall be administered by
the Board of  Directors  of the Company  ("Board").  Subject to the terms of the
Plan,  the Board shall have the power to interpret the  provisions and supervise
the  administration of the Plan. All decisions made by the Board pursuant to the
provisions of the Plan shall be made by a majority of its members at a duly held
regular or special meeting or by written consent in lieu of any such meeting.  A
majority of the directors in office shall  constitute a quorum and all decisions
made by the Board  pursuant  to the  provisions  of the Plan  shall be made by a
majority of the directors present at any duly held regular or special meeting at
which a quorum is present  (unless the  concurrence  of a greater  proportion is
required by law or by the certificate of incorporation or bylaws of the Company)
or by the  written  consent of a majority of the  directors  in lieu of any such
meeting.   All   expenses  and   liabilities   incurred  by  the  Board  in  the
administration of this Plan shall be borne by the Company.  The Board may employ
attorneys, consultants,  accountants or other persons to assist the Board in the
carrying out of its duties hereunder.

      SECTION 3. Stock Reserved.  Subject to adjustment as provided in paragraph
5(f) and Section 6 hereof,  the aggregate  number of shares of Common Stock that
may be  issued  under  this Plan  shall not  exceed a number of shares of Common
Stock calculated as follows: (i) 75,000, plus (ii) the total number of shares of
Common  Stock  subject  to  outstanding  options  granted  only to  non-employee
directors of the Company under the 1988 Stock Option Plan of Howell  Corporation
("1988  Plan")  and which  expire  or lapse  under the terms of the 1988 Plan or
related  option  agreements  during  the term of this  Plan or  which  otherwise
terminate or are cancelled,  including but not limited to a relinquishment of an
outstanding  option for cash,  without being  exercised  during the term of this
Plan;  provided,  however that,  the aggregate  number of shares of Common Stock
that may be issued  under  this Plan shall not  exceed  155,000,  subject to any
adjustments  under paragraph 5(f) and Section 6. The shares subject to this Plan
shall  consist of authorized  but unissued  shares of Common Stock or previously
issued  shares of Common  Stock  reacquired  and held by the  Company,  and such
number of shares shall be and is hereby reserved for sale for such purpose.  Any
of such shares which may remain unsold and which are not subject to  outstanding
options at the  termination  of this Plan  shall  cease to be  reserved  for the
purpose of this Plan, but until  termination of this Plan or the  termination of
the last of the options  granted  under this Plan,  whichever  last occurs,  the
Company  shall at all times  reserve a  sufficient  number of shares to meet the
requirements of this Plan. To the extent that an option under this Plan expires,
lapses,  or is cancelled,  including but not limited to a  relinquishment  of an
outstanding  option for cash,  any shares of Common Stock subject to such option
may again be made subject to an option under this Plan.

<PAGE>

      SECTION 4. Grant of  Options.  Each  director  of the  Company  who is not
otherwise an employee of the Company or any of the  Company's  subsidiaries  (as
defined in Section  424(f) of the Internal  Revenue  Code of 1986)  (hereinafter
referred to as an "Eligible  Director",  which term shall include any transferee
permitted  pursuant to paragraph 5(d) below) and who is not currently serving as
a director on the date this Plan is  approved by the Board,  shall be granted an
option to acquire  10,000 shares of Common Stock when such Eligible  Director is
first  elected  to the Board  ("Initial  Option").  Commencing  with the  Annual
Meeting of  Shareholders  approving this Plan, an option to acquire 1,000 shares
of Common Stock  ("Subsequent  Option") shall  automatically  be granted to each
Eligible Director on the date following each Annual Meeting of Shareholders. The
term "Date of Grant" means (i) in the case of an Initial  Option  granted on the
date on which  an  Eligible  Director  not  currently  serving  on the  Board of
Directors is first elected to the Board, the date of such initial election;  and
(ii) in the case of a Subsequent Option, the date following each Annual Meeting,
provided  that no Eligible  Director  shall  receive a Subsequent  Option at the
Annual  Meeting next  following  the receipt of an Initial  Option.  The Initial
Option and any Subsequent  Option shall be subject to adjustment as provided for
in paragraph 5(f).

      SECTION 5.

      (a) Terms and  Conditions.  Each option  granted  under this Plan shall be
evidenced  by an  agreement,  in a form  approved  by the Board,  which shall be
subject to the following  express terms and  conditions  and to such other terms
and conditions as the Board may deem appropriate.

      Each Initial  Option and Subsequent  Option shall not be  exercisable  for
more than a percentage  of the  aggregate  number of shares  offered  under each
Initial  Option and  Subsequent  Option  determined  by the number of full years
occurring  since the Date of Grant of each such  Initial  Option and  Subsequent
Option in accordance with the following schedule:

                          Number of             Percentage of
                          Full Years          Shares Purchasable
                        -------------         ------------------
                        Less than One                  0%
                        One                           25%
                        Two                           50%
                        Three                         75%
                        Four                         100%

If an Eligible  Director ceases to serve on the Board prior to the time all or a
portion of any Initial Option or Subsequent Option becomes exercisable  pursuant
to the above schedule, the portion of such option which is not exercisable shall
expire and be forfeited;  provided  however,  that upon the death of an Eligible
Director,  all options  granted the Eligible  Director  under this Plan shall be
fully exercisable as set forth below and in accordance with paragraph 5(d).

                                       2
<PAGE>
      Each  exercisable  option  granted  under this Plan shall  provide that it
shall  terminate  and be of no force or effect  with  respect  to any shares not
previously purchased under such option by an Eligible Director upon the first to
occur of (i) the expiration of ten years from the Date of Grant of the option or
(ii) the  expiration of one hundred  eighty (180) days after the  termination of
the Eligible Director's service as a Director of the Company for any reason.

      (b)  Exercise  Price.  The  exercise  price of each share of Common  Stock
subject to an Initial Option or Subsequent Option shall be the fair market value
of a share  of  Common  Stock on the Date of  Grant  of the  Initial  Option  or
Subsequent  Option. For all purposes under this Plan, the fair market value of a
share of Common Stock means,  as of any specified date, the closing price of the
Common Stock as reported in The Wall Street  Journal's  New York Stock  Exchange
("NYSE") - Composite  Transactions  listing for such day  (corrected for obvious
typographical  errors),  or if the shares are listed for trading on the NYSE but
no  closing  price is  reported  in such  listing  for such  day,  then the last
reported  closing  price for such shares on the NYSE,  or if such shares are not
listed or traded on the NYSE, the closing sales price on any national securities
exchange  on which the  Common  Stock is traded,  or if the Common  Stock is not
traded on any national securities  exchange,  then the mean of the reported high
and low sales prices for such shares in the over-the-counter market, as reported
on the National  Association of Securities Dealers Automated  Quotations System,
or, if such prices shall not be reported  thereon,  the mean between the closing
bid and asked prices reported by the National Quotation Bureau Incorporated, or,
in all other cases, the value established by the Board in good faith.

      (c) Procedure for Exercise.  Options shall be exercised by the delivery by
the Eligible  Director of written notice to the Secretary of the Company setting
forth the number of shares of Common  Stock with  respect to which the option is
being  exercised.  The notice  shall be  accompanied  by, at the election of the
Eligible Director,  (i) cash,  cashier's check, bank draft, or postal or express
money order payable to the order of the Company, (ii) certificates  representing
shares of Common Stock  theretofore owned by the Eligible Director duly endorsed
for transfer to the Company, or (iii) any combination of the preceding, equal in
value to the full amount of the exercise price.  Moreover,  an option  agreement
may provide for a "cashless  exercise" of the option by establishing  procedures
whereby the Eligible Director,  by a properly-executed  written notice,  directs
(i) an  immediate  market  sale or margin loan  respecting  all or a part of the
shares of Common  Stock to which he is  entitled  upon  exercise  pursuant to an
extension of credit by the brokerage firm or other financial  institution to the
Eligible Director of the option price, (ii) the delivery of the shares of Common
Stock  from  the  Company  directly  to a  brokerage  firm  or  other  financial
institution  and (iii) the  delivery of the option price from the sale or margin
loan proceeds from the brokerage firm or other financial institution directly to
the Company. Notice may also be delivered by telecopy provided that the exercise
price of such shares is  received  by the Company via wire  transfer on the same
day the  telecopy  transmission  is received by the  Company.  The notice  shall
specify the address to which the  certificates for such shares are to be mailed.
An option to purchase  shares of Common Stock in accordance with this Plan shall
be deemed to have been exercised  immediately  prior to the close of business on
the date (i) written  notice of such  exercise  and (ii)  payment in full of the
exercise  price for the number of share for which  options are being  exercised,
are both received by the Company and the Eligible  Director shall be treated for
all  purposes  as the record  holder of such  shares of Common  Stock as of such
date.

                                       3
<PAGE>
      As  promptly  as  practicable  after  receipt of such  written  notice and
payment, the Company shall deliver to the Eligible Director certificates for the
number of shares with respect to which such option has been so exercised, issued
in the Eligible Director's name or such other name as Eligible Director directs;
provided,  however, that such delivery shall be deemed effected for all purposes
when  a  stock   transfer  agent  of  the  Company  shall  have  deposited  such
certificates  in the United States mail,  addressed to the Eligible  Director at
the address specified pursuant to this paragraph 5(c).

      (d) Transferability.  An option granted pursuant to this Plan shall not be
assignable or otherwise  transferable by an Eligible Director  otherwise than by
an Eligible  Director's will or by the laws of descent and distribution.  During
the lifetime of an Eligible  Director,  an option shall be  exercisable  only by
such Eligible Director or the Eligible Director's legal representative. Any heir
or legatee of the Eligible  Director shall take rights granted herein and in the
option agreement subject to the terms and conditions hereof and thereof. No such
transfer of any option to heirs or legatees of the  Eligible  Director  shall be
effective to bind the Company  unless the Company shall have been furnished with
written  notice  thereof  and a copy of such  evidence  as the  Board  may  deem
necessary to establish  the validity of the transfer and the  acceptance  by the
transferee or transferees of the terms and conditions hereof.

      (e) No Rights as Shareholder.  No Eligible  Director shall have any rights
as a shareholder with respect to shares covered by an option until the option is
exercised by written notice and  accompanied by payment as provided in paragraph
5(c) above.

      (f)  Changes in Capital  Structure.  If the  outstanding  shares of Common
Stock or other securities of the Company,  or both, for which the option is then
exercisable  shall at any time be changed or exchanged by declaration of a stock
dividend, stock split, or combination of shares, then (i) the number and kind of
shares of Common Stock or other  securities which are subject to this Plan, (ii)
the number and kind of shares of Common Stock or other securities which shall be
subject to any Initial  Option or  Subsequent  Option,  and the total  number of
shares  granted  after  such  event,  and (iii) the number and kind of shares of
Common Stock or other  securities  which are subject to any options  theretofore
granted,  and the exercise prices thereof,  shall be appropriately and equitably
adjusted  so  as to  maintain  the  proportionate  number  of  shares  or  other
securities without changing the aggregate exercise price.

      SECTION 6.  Corporate Transactions.

      (a) The  existence of  outstanding  options  granted  hereunder  shall not
affect in any way the right or power of the Company or its  shareholders to make
or  authorize  any  or  all  adjustments,  recapitalizations,   reorganizations,
exchanges,  or other changes in the Company's capital structure or its business,
or any merger or consolidation  of the Company,  or any issuance of Common Stock
or other  securities or subscription  rights thereto,  or any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common
Stock or the rights  thereof,  or the dissolution or liquidation of the Company,
or any sale or  transfer  of all or any part of its assets or  business,  or any
other corporate act or proceeding, whether of a similar character or otherwise.

                                       4
<PAGE>
      (b) If the Company is reorganized,  merged or consolidated or is otherwise
a party  to a plan of  exchange  with  another  corporation  pursuant  to  which
reorganization,  merger, consolidation or plan of exchange,  shareholders of the
Company receive any shares of Common Stock or other securities or if the Company
shall  distribute  ("Spin  Off")  securities  of  another   corporation  to  its
shareholders,  there  shall  be  substituted  for  the  shares  subject  to  the
unexercised  portions of outstanding  options  granted  hereunder an appropriate
number of  shares  of (i) each  class of stock or other  securities  which  were
distributed to the  shareholders of the Company in respect of such shares in the
case of a reorganization,  merger, consolidation or plan of exchange, or (ii) in
the case of a Spin  Off,  the  securities  distributed  to  shareholders  of the
Company  together  with  shares  of  Common  Stock,  such  number  of  shares or
securities to be determined in accordance  with the provisions of Section 425 of
the Code (or  other  applicable  provisions  of the Code or  regulations  issued
thereunder  which may from time to time govern the treatment of incentive  stock
options in such a transaction);  provided, however, that all such options may be
canceled  by the  Company  as of the  effective  date  of (x) a  reorganization,
merger,  consolidation,  plan of exchange or Spin Off or (y) any  dissolution or
liquidation  of the Company,  by giving  notice to each Optionee or his personal
representative  of its intention to do so and by  permitting  the purchase for a
period of at least  thirty  days  during  the sixty  days  next  preceding  such
effective date of all of the shares subject to such outstanding options, without
regard to the  installment  provisions set forth in the option  agreements;  and
provided  further  that in the event of a Spin Off,  the Company may, in lieu of
substituting  securities or accelerating  and canceling  options as contemplated
above,  elect (i) to reduce the  purchase  price for each share of Common  Stock
subject to an outstanding option by an amount equal to the fair market value, as
determined in accordance  with the provisions of Section 5(b), of the securities
distributed in respect of each outstanding share of Common Stock in the Spin Off
or (ii) to reduce  proportionately  the purchase price per share and to increase
proportionately  the number of shares of Common Stock  subject to each option in
order to  reflect  the  economic  benefits  inuring to the  shareholders  of the
Company as a result of the Spin Off.

      (c) The  Board  may,  in its sole  discretion,  at the time the  option is
granted or by amendment of the option thereafter, provide that an option granted
hereunder shall become fully exercisable upon a Change in Control of the Company
(as defined in the next sentence). A "Change in Control" of the Company shall be
conclusively deemed to have occurred if (and only if) any of the following shall
have taken place: (i) a change in control is reported by the Company in response
to Item 1 or Form 8-K (or any successor  item of Form 8-K or any similar item of
any other  reports  required  to be filed by the  Company  under the  Securities
Exchange Act of 1934, as amended ("Exchange  Act"));  (ii) any "person" (as such
term is used in Sections  13(d) and 14(d)(2) of the Exchange  Act) is or becomes
the  "beneficial  owner"  (as  defined in Rule 13d-3  under the  Exchange  Act),
directly or indirectly,  of securities of the Company representing forty percent
or  more  of the  combined  voting  power  of  the  Company's  then  outstanding
securities;  or (iii) following the election or removal of directors, a majority
of the Board consists of individuals who were not members of the Board two years
before such  election or removal,  unless the election of each  director who was
not a director at the  beginning of such  two-year  period has been  approved in
advance by directors  representing  at least a majority of the directors then in
office who were directors at the beginning of the two-year period.

                                       5
<PAGE>
      SECTION 7.  Amendments or  Termination.  Except as set forth  herein,  the
Board in its  discretion  may terminate the Plan at any time with respect to any
shares for which options have not theretofore been granted.  Except as set forth
herein,  the Board  shall  have the right to alter or amend the Plan or any part
thereof from time to time. Neither a termination of the Plan nor a change in any
options  theretofore  granted  may be made which  would  impair the rights of an
Eligible  Director  holding  such option  without  the  consent of the  Eligible
Director.  The Board may not,  without approval of the  shareholders,  amend the
Plan:

      (a) to  increase  the  maximum  number  of  shares  which may be issued on
exercise or  surrender of an option,  except as provided in  paragraph  5(f) and
Section 6;

      (b) to change the class of persons eligible to receive options;

      (c) to extend the maximum period during which options may be granted under
the Plan;

      (d)  to extend the expiration date of the Plan; or

      (e) to  decrease  to any extent the price at which  options may be granted
under the Plan, except as provided in paragraph 5(f) and Section 6.

      SECTION 8.  Compliance  With Other Laws and  Regulations.  This Plan,  the
grant and exercise of options  thereunder,  and the obligation of the Company to
sell and deliver  shares under such options,  shall be subject to all applicable
federal and state  laws,  rules and  regulations  and to such  approvals  by any
governmental or regulatory  agency as may be required.  The Company shall not be
required to issue or deliver any  certificates  for shares of Common Stock prior
to the completion of any  registration or qualification of such shares under any
federal or state law or issuance of any ruling or regulation  of any  government
body which the Company shall, in its sole discretion,  determine to be necessary
or advisable.

      SECTION 9.  Purchase  for  Investment.  Unless the  options  and shares of
Common Stock covered by this Plan have been registered  under the Securities Act
of 1933, as amended,  or the Company has determined  that such  registration  is
unnecessary, each person exercising an option under this Plan may be required by
the Company to give a  representation  in writing  that such person is acquiring
such shares for his or her own account for investment and not with a view to, or
for sale in connection with, the distribution of any part thereof.

      SECTION 10.  Taxes.

      (a) The Company may make such  provisions as it may deem  appropriate  for
the  withholding of any taxes which it determines is required in connection with
any options granted under this Plan.

      (b) Any Eligible Director may pay all or any portion of the taxes required
to be  withheld by the Company or paid by the  Eligible  Director in  connection
with the exercise of an option by electing to have the Company  withhold  shares
of Common  Stock,  or by  delivering  previously  owned shares of Common  Stock,
having a fair market value,  determined in accordance with paragraph 5(b), equal
to the amount  required to be withheld or paid.  An Eligible  Director must make
the  foregoing  election  on or  before  the date  that the  amount of tax to be
withheld  is  determined.  All such  elections  are  irrevocable  and subject to
disapproval by the Board.

                                       6
<PAGE>
      SECTION 11.  Liability of Company for Non-Issuance of Shares
and  Tax  Consequences.  The  Company  shall  not be  liable  to an
Eligible Director or other persons as to:

      (a) The  non-issuance  or sale of shares as to which the  Company has been
unable to obtain from any  regulatory  body having  jurisdiction  the  authority
deemed by the Company's  counsel to be necessary to the lawful issuance and sale
of any shares hereunder; and

      (b) Any  tax  consequence  expected,  but not  realized,  by any  Eligible
Director or other person due to the exercise of any option granted hereunder.

      SECTION  12.  Effectiveness  and  Expiration  of Plan.  The Plan  shall be
effective  on the date of its  approval  and  adoption  by the Board  subject to
approval of the shareholders of the Company.  All Initial Options and Subsequent
Options  granted to any Eligible  Director prior to shareholder  approval of the
Plan shall be expressly  subject to such approval.  If the  shareholders  of the
Company  fail to approve  the Plan  within  twelve  months of the date the Board
approved the Plan, the Plan shall terminate and all options  previously  granted
under the Plan shall  become  void and of no effect.  The Plan shall  expire ten
years after the date the Board  approves the Plan and thereafter no option shall
be granted  pursuant to the Plan;  provided,  however,  that the Plan provisions
shall remain in effect with respect to all options  granted under the Plan until
such options are satisfied or expire.

      SECTION 13.  Non-Exclusivity of this Plan. The adoption by the Board shall
not be construed as creating any  limitations on the power of the Board to adopt
such other incentive  arrangements as it may deem desirable,  including  without
limitation,  the granting of restricted  stock or stock options  otherwise  than
under this Plan, and such  arrangements  may be either  generally  applicable or
applicable only in specific cases.

      SECTION  14.  Governing  Law.  This  Plan and any  agreements
hereunder  shall be  interpreted  and construed in accordance  with
the laws of the State of Delaware and applicable federal law.

      IN WITNESS  WHEREOF,  and as  conclusive  evidence of the  adoption of the
foregoing by the Board,  Howell  Corporation has caused this document to be duly
executed in its name and behalf by its proper officer  thereunto duly authorized
as of the date of the adoption of the Plan by the Board, being March 16,1999.

                               HOWELL CORPORATION

                               By:  /s/ ROBERT T. MOFFETT
                                    -----------------------------
                                    Robert T. Moffett
                                    Vice President

                                      7EXHIBIT 10.2

                                    DIRECTOR
                       NONQUALIFIED STOCK OPTION AGREEMENT

      This Nonqualified Stock Option Agreement  ("Option  Agreement") is between
Howell    Corporation,    a   Delaware    corporation    (the   "Company")   and
___________________ (the "Optionee").

                              W I T N E S S E T H:

      WHEREAS, to carry out the purposes of the Howell Corporation  Nonqualified
Stock Option Plan for Non-Employee  Directors (the "Plan"), a nonqualified stock
option under the Plan is hereby granted to the Optionee in accordance  with this
Option Agreement.

      NOW THEREFORE,  for and in consideration of these premises it is agreed as
follows:

      1.  Option.  Subject to the terms and  conditions  contained  herein,  the
Company hereby irrevocably grants to Optionee the right and option ("Option") to
purchase  from  the  Company  _____________________  (_________)  shares  of the
Company's  common  stock,  $1.00  par  value  ("Common  Stock"),  at a price  of
$__________ per share.

      2. Option Period.  The  Option herein granted may be exercised by Optionee
in whole or in part at any time  during a ten  (10)  year  period  (the  "Option
Period") beginning on ________________,  1999 (the "Grant Date"), subject to the
limitation  that said Option shall not be exercisable for more than a percentage
of the  aggregate  number of shares  offered by this  Option  determined  by the
number of full  years  occurring  since the Grant  Date in  accordance  with the
following schedule:

             Number of                       Percentage of
             Full Years                   Shares Purchasable
           -------------                  ------------------
           Less than one                          0%
           One                                   25%
           Two                                   50%
           Three                                 75%
           Four or more                         100%

Notwithstanding  anything in this  Agreement to the contrary,  upon the death of
the Optionee,  the Option granted  hereunder shall be fully  exercisable and the
above schedule shall not apply.

<PAGE>
      3. Procedure  for  Exercise. The Option herein granted may be exercised by
written  notice by Optionee to the  Secretary of the Company  setting  forth the
number of  shares of Common  Stock  with  respect  to which the  Option is to be
exercised accompanied by payment for the shares to be purchased,  and specifying
the address to which the certificate for such shares is to be mailed. The notice
shall be accompanied by (i) cash, cashier's check, bank draft, postal or express
money order payable to the order of the Company, or other immediately  available
funds,  or (ii)  certificates  representing  shares of Common Stock  theretofore
owned by  Optionee  duly  endorsed  for  transfer to the  Company,  or (iii) any
combination of the preceding,  equal in value to the aggregate  exercise  price.
The Optionee may initiate a "cashless exercise" as described in the Plan. Notice
may also be delivered  by fax or telecopy  provided  that the exercise  price of
such shares is received by the Company via wire transfer on the same day the fax
or  telecopy  transmission  is received  by the  Company.  An option to purchase
shares of Common  Stock in  accordance  with this Plan,  shall be deemed to have
been  exercised  immediately  prior  to the  close of  business  on the date (i)
written  notice of such exercise and (ii) payment in full of the exercise  price
for the  number  of shares  for which  Options  are  being  exercised,  are both
received by the Company and  Optionee  shall be treated for all  purposes as the
record holder of such shares of Common Stock as of such date.

      As  promptly  as  practicable  after  receipt of such  written  notice and
payment,  the Company shall deliver to Optionee  certificates  for the number of
shares  with  respect to which  such  Option  has been so  exercised,  issued in
Optionee's name or such other name as Optionee directs; provided,  however, that
such delivery  shall be deemed  effected for all purposes when a stock  transfer
agent of the Company shall have deposited such certificates in the United States
mail, addressed to Optionee at the address specified pursuant to this Section 3.

      4. Cessation  from the Board of Directors. If the Optionee ceases to serve
on the Board of Directors of the Company  ("Board") during the Option Period for
any reason  (including  death),  Options which are  exercisable  by the Optionee
pursuant to Section 2 on the date of such  cessation from the Board shall expire
on the  earlier of (i)  one-hundred  and eighty  (180) days from the date of the
Optionee's  cessation  from  the  Board  or (ii)  the  remaining  Option  Period
established  for the Option  pursuant  to Section 2. Any  Options  which are not
exercisable by the Optionee  pursuant to Section 2 on the date of the Optionee's
cessation  from the Board shall  expire on the date of such  cessation  from the
Board.

      5.  Transferability.  This Option  shall not be  transferable  by Optionee
otherwise  than by Optionee's  will or by the laws of descent and  distribution.
During the lifetime of Optionee,  the Option shall be  exercisable  only by him.
Any heir or legatee of Optionee shall take rights herein granted  subject to the
terms and conditions  hereof. No such transfer of this Option Agreement to heirs
or legatees  of  Optionee  shall be  effective  to bind the  Company  unless the
Company shall have been furnished with written notice thereof and a copy of such
evidence  as the Board may deem  necessary  to  establish  the  validity  of the
transfer and the  acceptance by the  transferee or  transferees of the terms and
conditions hereof.

                                       2
<PAGE>
      6.  No  Rights  as  Stockholder.  Optionee  shall  have  no  rights  as  a
stockholder  with respect to any shares of Common  Stock  covered by this Option
Agreement  until the Option is exercised by written  notice and  accompanied  by
payment as provided in Section 3 above.  Until such time,  Optionee shall not be
entitled  to  dividends  attributable  to such  shares or to vote such shares at
meetings of the  stockholders  of the  Company.  Except as provided in Section 8
hereof,  no adjustment shall be made for dividends  (ordinary or  extraordinary,
whether in cash or securities or other property) paid or  distributions or other
rights granted in respect of any share of Common Stock for which the record date
for such  payment,  distribution  or grant is prior to the date  upon  which the
Optionee  shall have  exercised said Option by written notice and payment to the
Company, as provided hereinabove.

      7. Corporate Transactions.

           a. If the  Company  is  reorganized,  merged  or  consolidated  or is
otherwise a party to a plan of exchange  with  another  corporation  pursuant to
which reorganization, merger, consolidation or plan of exchange, shareholders of
the Company  receive any shares of Common  Stock or other  securities  or if the
Company shall distribute  ("Spin Off") securities of another  corporation to its
shareholders,  there  shall  be  substituted  for  the  shares  subject  to  the
unexercised  portion of the Option an  appropriate  number of shares of (i) each
class of stock or other securities which were distributed to the shareholders of
the Company in respect of such shares in the case of a  reorganization,  merger,
consolidation  or plan of  exchange,  or (ii)  in the  case of a Spin  Off,  the
securities  distributed to shareholders  of the Company  together with shares of
Common Stock, such number of shares or securities to be determined in accordance
with the  provisions  of Section 425 of the Internal  Revenue  Code of 1986,  as
amended (the "Code") (or other applicable  provisions of the Code or regulations
issued  thereunder which may from time to time govern the treatment of incentive
stock options in such a transaction);  provided, however, that the Option may be
canceled  by the  Company  as of the  effective  date  of (x) a  reorganization,
merger,  consolidation,  plan of exchange or Spin Off or (y) any  dissolution or
liquidation  of the  Company,  by giving  notice to the Optionee or his personal
representative  of its intention to do so and by  permitting  the purchase for a
period of at least  thirty  days  during  the sixty  days  next  preceding  such
effective date of all of the shares subject to the Option;  and provided further
that in the  event of a Spin  Off,  the  Company  may,  in lieu of  substituting
securities or accelerating and canceling the Option as contemplated above, elect
(i) to reduce the purchase  price for each share of Common Stock  subject to the
Option by an amount equal to the fair market value,  as determined in accordance
with the provisions of Section 5(b) of the Plan, of the  securities  distributed
in respect of each outstanding  share of Common Stock in the Spin Off or (ii) to
reduce   proportionately   the   purchase   price  per  share  and  to  increase
proportionately  the number of shares of Common  Stock  subject to the Option in
order to  reflect  the  economic  benefits  inuring to the  shareholders  of the
Company as a result of the Spin Off.

                                       3
<PAGE>
           b. The Option shall become fully exercisable upon a Change in Control
of the  Company (as  defined in the next  sentence).  "Change in Control" of the
Company  shall be  conclusively  deemed to have occurred if (and only if) any of
the following shall have taken place: (i) a change in control is reported by the
Company in response to Item 1 of Form 8-K (or any successor  item of Form 8-K or
any similar item of any other report  required to be filed by the Company  under
the  Securities  Exchange Act of 1934, as amended  ("Exchange  Act"));  (ii) any
"person"  (as such term is used in Sections  13(d) and  14(d)(2) of the Exchange
Act) is or becomes  the  "beneficial  owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
forty  percent  or more of the  combined  voting  power  of the  Company's  then
outstanding securities; or (iii) following the election or removal of directors,
a majority  of the Board  consists  of  individuals  who were not members of the
Board two years  before such  election or removal,  unless the  election of each
director  who was not a director at the  beginning of such  two-year  period has
been  approved in advance by directors  representing  at least a majority of the
directors  then in office who were  directors  at the  beginning of the two-year
period.

           c.  Except  as  hereinbefore  expressly  provided,  the  issue by the
Company  of shares of stock of any  class,  or  securities  convertible  into or
exchangeable  for shares of stock of any  class,  for cash or  property,  or for
labor or  services,  either upon  direct sale or upon the  exercise of rights or
warrants to subscribe  therefor,  or upon conversion of shares or obligations of
the Company  convertible  into or exchangeable  for shares of stock of any class
shall not affect, and no adjustment by reason thereof shall be made with respect
to,  the  number of  shares  of  Common  Stock  subject  to the  Option  granted
hereunder.

      8. Changes  in  Capital  Structure.  The existence of outstanding  Options
shall  not  affect  in  any  way  the  right  or  power  of the  Company  or its
shareholders  to make or authorize  any or all  adjustments,  recapitalizations,
reorganizations  or other  changes in the  Company's  capital  structure  or its
business,  or any merger or  consolidation  of the  Company,  or any issuance of
Common  Stock  or  subscription  rights  thereto,  or  any  issuance  of  bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common
Stock or the rights  thereof,  or the dissolution or liquidation of the Company,
or any sale or  transfer  of all or any part of its assets or  business,  or any
other corporate act or proceedings, whether of a similar character or otherwise.
If the  outstanding  shares of Common Stock of the Company  shall at any time be
changed or exchanged by a subdivision or consolidation of shares of Common Stock
or other capital readjustment,  a declaration of a stock dividend,  stock split,
combination  of  shares,  or  recapitalization,  the  number  and kind of shares
subject to the Plan or  subject  to any  Options  theretofore  granted,  and the
Option prices,  shall be appropriately and equitably  adjusted so as to maintain
the proportionate number of shares without changing the aggregate Option price.

      9.  Compliance  With  Securities  Laws. Upon the acquisition of any shares
pursuant to the exercise of the Option herein  granted,  Optionee (or any person
acting under Section 5) will enter into such written representations, warranties
and  agreements  as the Company may  reasonably  request in order to comply with
applicable securities laws or with this Option Agreement.

      10.  Compliance With  Laws.  Notwithstanding  any of the other  provisions
hereof,  Optionee agrees that he will not exercise the Option(s) granted hereby,
and that the Company will not be obligated to issue any shares  pursuant to this
Option  Agreement,  if the  exercise of the  Option(s)  or the  issuance of such
shares of Common  Stock would  constitute  a violation by the Optionee or by the
Company of any provision of any law or regulation of any governmental authority.

                                       4
<PAGE>
      11.  Withholding of Tax. To the extent that the exercise of this Option or
the  disposition  of shares of Common Stock  acquired by exercise of this Option
results in  compensation  income to the Optionee for federal or state income tax
purposes,  the Optionee shall pay to the Company at the time of such exercise or
disposition (or such other time as the law permits if the Optionee is subject to
Section  16(b) of the  Exchange  Act) such  amount of money as the  Company  may
require to meet its obligation under applicable tax laws or regulations; and, if
the Optionee fails to do so, the Company is authorized to withhold from any cash
remuneration then or thereafter payable to the Optionee,  any tax required to be
withheld  by  reason  of such  resulting  compensation  income  or  Company  may
otherwise refuse to issue or transfer any shares otherwise required to be issued
or transferred  pursuant to the terms hereof.  Payment of the withholding tax by
the Optionee shall be made in accordance with Section 10 of the Plan.

      12. Resolution  of Disputes.  As a condition of the granting of the Option
hereby,  the  Optionee  and his heirs and  successors  agree that any dispute or
disagreement  which may arise  hereunder shall be determined by the Board in its
sole  discretion  and  judgment,   and  that  any  such  determination  and  any
interpretation by the Board of the terms of this Option Agreement shall be final
and  shall be  binding  and  conclusive,  for all  purposes,  upon the  Company,
Optionee, his heirs and personal representatives.

      13. Legends on  Certificate.  The certificates  representing the shares of
Common  Stock  purchased  by exercise of an Option will be stamped or  otherwise
imprinted  with  legends in such form as the  Company or its counsel may require
with respect to any  applicable  restrictions  on sale or transfer and the stock
transfer  records of the Company will reflect  stop-transfer  instructions  with
respect to such shares.

      14. Compliance  With. Every notice hereunder shall be in writing and shall
be given by  registered  or certified  mail.  All notices of the exercise of any
Option hereunder shall be directed to Howell Corporation,  1500 Howell Building,
1111 Fannin, Houston, Texas 77002-6923,  Attention:  Secretary. Any notice given
by the  Company  to  Optionee  directed  to him at his  address on file with the
Company  shall be effective  to bind him and any other person who shall  acquire
rights hereunder.  The Company shall be under no obligation whatsoever to advise
Optionee of the existence,  maturity or termination of any of Optionee's  rights
hereunder  and Optionee  shall be deemed to have  familiarized  himself with all
matters  contained  herein and in the Plan  which may  affect any of  Optionee's
rights or privileges hereunder.

      15. Construction and Interpretation.  Whenever the term "Optionee" is used
herein  under  circumstances  applicable  to any other person or persons to whom
this  award,  in  accordance  with the  provisions  of Section 5 hereof,  may be
transferred,  the word  "Optionee"  shall be deemed to  include  such  person or
persons.  References  to the  masculine  gender herein also include the feminine
gender for all purposes.

      16.  Agreement  Subject to  Plan. This Option  Agreement is subject to the
Plan. The terms and provisions of the Plan (including any subsequent  amendments
thereto) are hereby  incorporated herein by reference thereto. In the event of a
conflict between any term or provision  contained herein and a term or provision
of the Plan,  the  applicable  terms and  provisions of the Plan will govern and
prevail.  All  definitions  of words and terms  contained  in the Plan  shall be
applicable to this Option Agreement.

                                       5
<PAGE>
      17. Binding Effect. This  Option Agreement shall be binding upon and inure
to the  benefit  of any  successors  to the  Company  and all  persons  lawfully
claiming under Optionee.

      IN WITNESS WHEREOF,  this Option Agreement has been executed as of the ___
day of ________________, ____.

ATTEST:                        HOWELL CORPORATION

______________________________ By:_________________________________

                               OPTIONEE

                               ____________________________________

                                       6

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