Document:

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                                                                   EXHIBIT 10.25

                                 EQUIPMENT LEASE

                                     Between

                    TEWEL CORPORATION, a Delaware corporation

                                     LESSOR,

                                       and

          PETRO STOPPING CENTERS, L.P., a Delaware limited partnership

                                     LESSEE

                              Location of Premises:

                              7265 North Baker Road
                        Fremont, Steuben County, Indiana

                             "Angola Travelers Mall"

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                                TABLE OF CONTENTS

Section                                                                 Page
-------                                                                 ----

1.   LEASE AND DESCRIPTION .............................................. 1

2.   TERM ............................................................... 1

3.   RENTAL ............................................................. 2

4.   WARRANTIES AND REPRESENTATIONS ..................................... 2

5.   USE AND MAINTENANCE ................................................ 2

6.   PERSONAL PROPERTY TAXES AND ASSESSMENTS ............................ 3

7.   INSURANCE AND SUBROGATION .......................................... 4

8.   LOSS OR DESTRUCTION ................................................ 5

9.   INDEMNITY .......................................................... 5

10.  ASSIGNMENT ......................................................... 5

11.  NON-DISTURBANCE AGREEMENT(S) ....................................... 5

12.  DEFAULTS ........................................................... 5

13.  MISCELLANEOUS ...................................................... 6

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                                 EQUIPMENT LEASE

         THIS EQUIPMENT LEASE AGREEMENT (the "Lease") is made and entered into
as of the 12 day of August, 2002 (the "Effective Date") by and between TEWEL
CORPORATION, a Delaware corporation ("Tewel"), whose address 7041 Truck World
Blvd., Hubbard, Ohio, 44245, EDWARD T. YASECHKO and EDWARD J. YASECHKO
(collectively "Messrs. Yasechko", and together with Tewel, referred to herein
collectively as "Lessor"), whose address is c/o Quadland Corporation, 7041 Truck
World Blvd., Hubbard, Ohio 44245 and PETRO STOPPING CENTERS, L.P., a Delaware
limited partnership ("Lessee"), whose address is 6080 Surety Drive, El Paso,
Texas 79905.

         1. LEASE AND DESCRIPTION. Lessor hereby leases to Lessee, and Lessee
hereby leases from Lessor, in consideration for the rentals herein described and
the terms, covenants and conditions set forth herein, all furniture, fixtures,
trade fixtures, machinery, equipment and other personal property owned by Lessor
(the "Equipment"), as more particularly described in Exhibit A attached hereto
and made a part hereto, it being intended that the Equipment include all
personal property used or useful in connection with the operation of the Angola
Travelers Mall situated on the real property municipally known and numbered as
7265 North Baker Road, Fremont, Steuben County, Indiana and being more
particularly described on Exhibit B attached hereto and made a part hereof (the
"Real Property").

         Contemporaneously with the execution of this Lease, QUADLAND
CORPORATION ("Quadland"), an Ohio corporation, as landlord, and Lessee, as
tenant, have entered into a Lease Agreement with respect to the Real Property
(the "Real Property Lease"). It is intended that this Lease be coterminous with
the Real Property Lease, and any termination of the Real Property Lease shall be
deemed to automatically effect a termination of this Equipment Lease.

         2. TERM. The initial term (the "Initial Term") of this Lease shall be
for a period of ten (10) years, commencing August 12, 2002 (the "Commencement
Date") and terminating on August 11, 2012, subject to extension or early
termination as herein provided. On the Commencement Date, Lessor shall deliver
sole and exclusive possession of the Equipment to Lessee.

         Lessor hereby grants to Lessee, in addition to the Initial Term, the
option to renew this Lease for two (2) additional terms of five (5) years each
(each a "Renewal Term"), subject to and on the same terms and conditions as
herein provided. Each Renewal Term shall be exercised at the election of Lessee
by the tender of written notice of Lessee's intention to extend this Lease not
less than thirty (30) days prior to the expiration of the Initial Term or the
then current Renewal Term, as applicable.

         Notwithstanding anything to the contrary contained herein, including
without limitation that the Commencement Date shall be subsequent to the
Effective Date of this Lease, it is the intention of Lessor and Lessee that this
Lease be effective between the parties as of the Effective Date and that as of
such date, that each of Lessor and Lessee have their respective rights and
obligations hereunder.

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         3. RENTAL. Lessee is obligated to pay the Rent to Lessor as defined and
provided for under the Real Property Lease in consideration for both the rights
thereunder granted with respect to the Real Property and the rights in and to
the Equipment herein granted. Accordingly, no rent is payable directly from
Lessee to Lessor under the terms of this Lease, it being understood and agreed
that the consideration for the lease herein and the agreements, covenants and
obligations undertaken by Lessor and Lessee hereunder is reflected in payment of
the Rent to Lessor under the terms of the Real Property Lease. Lessor hereby
warrants and represents to Lessee that Lessor and Quadland have entered into an
agreement as to the allocation of Rent to be paid under the Real Property Lease
as between the Real Property and the Equipment. Lessee shall not be liable for
any dispute as between Lessor and Quadland and will be deemed to have satisfied
its obligation to pay rent hereunder upon delivery of the Rent payable under the
Real Property Lease to Quadland.

         4. WARRANTIES AND REPRESENTATIONS. Lessor warrants and represents that
it has title to the Equipment free of any liens and encumbrances, except as set
forth in Exhibit C attached hereto and made a part hereof (the "Equipment
Liens"), and that during the term of this Lease, provided no event of default
has occurred hereunder, Lessee's use of the Equipment shall not be interrupted
by Lessor or anyone claiming through or under Lessor. Lessor hereby warrants and
represents that (i) the Equipment is in working order and in good condition and
repair; (ii) the Equipment has been maintained in accordance with good business
practices and specifically in accordance with the terms of any guaranty or
warranty applicable thereto; (iii) Lessor has used the Equipment in the manner
in which it was intended to be used, consistent with all operating manuals and
procedures, and otherwise in accordance with all federal, state, and local laws,
ordinances, statutes, codes and regulations ("Applicable Laws"); and (iv) the
Equipment is suitable and fit for use for the purposes herein leased and the use
intended with regards thereto by Lessee. Lessor further warrants and represents
that all manufacturer's, vendor's, or dealer's warranties and guarantees
applicable to the Equipment are described on Exhibit D attached hereto and made
a part hereof (the "Warranties") and that all such Warranties are in full force
and effect as of the Effective Date. Lessor authorizes Lessee to assert for
Lessor's account, during the term of this Lease, all of Lessor's rights under
any such Warranties. Lessor warrants and represents that any Equipment not in
proper working order as of the Commencement Date will be immediately repaired or
replaced at Lessor's expense. Specifically, Lessor warrants and represents that
that certain Lease Agreement #550460 dated as of May 11, 1999, by and between
Lessor and GE Capital Corporation (successor in interest to Heller Financial
Leasing, Inc.) (the "GE Capital Lease") with respect to certain equipment
described thereunder is in full force and effect and there have been no
amendments or modifications to the terms and provisions of said GE Capital
Lease. Lessor hereby warrants and represents that as of the date hereof no event
of default has occurred under the GE Capital Lease and no condition exists which
with the giving of notice, lapse of time or both or otherwise would constitute
such an event of default. Lessor warrants and represents that it will continue
to fulfill its obligations under the GE Capital Lease and that at the expiration
of the GE Capital Lease term on May 10, 2004, Lessor will immediately exercise
its purchase option under said GE Capital Lease. In the event an event of
default occurs under the GE Capital Lease as a result of Lessor's failure to
fulfill its obligations under the GE Capital Lease, Lessee shall have the right
to cure such default and offset such amounts against future rental installments
(as set forth in the Real Property Lease) as the same become due and at Lessee's
option, pursue any other remedy available to it at law or in equity.

         5. USE AND MAINTENANCE.

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         (a) During the term of this Lease, Lessee shall use the Equipment in
the conduct of Lessee's business and in compliance with all Applicable Laws.

         (b) Subject to the provisions of subparagraph (d) below Lessee, at its
expense, will repair and maintain the Equipment in the condition received from
Lessor, ordinary wear and tear and damage by casualty and condemnation excepted.

         (c) Lessor shall have the right at all reasonable times, subject to
providing reasonable prior written notice to Lessee, to inspect the Equipment.

         (d) In the event that during the term of this Lease the Equipment, or
any portion thereof, shall become obsolete, inoperable, unusable, unfit for use
or out of repair, and the repair in the opinion of Lessee is not consistent with
the best interest of Lessee's business, Lessee may relinquish such portion of
the Equipment to Lessor, making the same available to Lessor at the Real
Property. In such event Lessee shall give Lessor written notice of its intention
to replace such portion of the Equipment and thereafter Lessor shall have a
period of fifteen (15) days within which to remove the same from the Real
Property, at its sole cost and expense. In the event Lessor fails to reclaim and
remove the Equipment within such fifteen (15) day period, Lessor shall be deemed
to have abandoned the same and thereafter Lessee shall be free to dispose of
such Equipment as Lessee chooses without any obligation or liability to account
to Lessor therefore. In the event Lessee elects to replace such portion of the
Equipment or in any event install other items of personal property on or about
the Real Property for use in connection with Lessee's business thereon (the
"Lessee's Equipment"), Lessor, within five (5) days of the request therefor from
Lessee, will execute such affidavits, confirmations, agreements, financing
statements or other documents to disclaim any ownership or security interest in
Lessee's Equipment. Should Lessor fail or refuse to execute any such
confirmation, affidavit, agreement, financing statement or document with respect
to the Lessee's Equipment, following the request by Lessee, Lessee is hereby
appointed attorney in fact, and granted the power of attorney for Lessor, for
the purpose of executing the same.

         (e) Upon the expiration of the Initial Term and all applicable Renewal
Terms of this Lease, Lessee shall, subject to the provisions of subparagraph (d)
above, relinquish to Lessor the right to possession and use of the remaining
Equipment originally leased hereunder from to Lessor to Lessee, leaving the same
accessible to Lessor at the Real Property, such remaining Equipment to then be
in substantially the same condition as of the Effective Date, ordinary wear,
tear and obsolescence and damage by casualty and condemnation excepted. At any
time during the term of this Lease, and upon the expiration of the Initial Term
and all applicable Renewal Terms of this Lease, Lessee shall have the full right
and power to remove any of Lessee's Equipment from the Real Property.

         6.  PERSONAL PROPERTY TAXES AND ASSESSMENTS.

         (a) During the term of this Lease, Lessee shall pay, prior to
delinquency, all use, personal property and ad valorem taxes or assessments of
any kind or nature imposed upon the use and operation of the Equipment by any
state or local laws or any governmental taxing authority (collectively, the
"Personal Property Taxes").

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         (b) Lessee's obligation for Personal Property Taxes shall be equitably
adjusted and pro rated for any portion of the term of this Lease which does not
include an entire tax year.

         (c) Nothing herein contained shall require or be construed to require
Lessee to pay any inheritance, estate, succession, mortgage or transfer tax,
gift, franchise, withholding, income or profit tax, that is or may be imposed
upon Lessor, its successors or assigns, in connection with the Equipment, or
otherwise.

         (d) Immediately upon receipt of any tax bill, statement or assessment
with respect to Personal Property Taxes owing for the Equipment, Lessor shall
furnish to Lessee such tax bill, statement or assessment. Lessee shall furnish
evidence of the payment of the Personal Property Taxes to Lessor upon the
request therefore from Lessor.

         (e) Lessee hereby reserves the right to contest the amount of any
Personal Property Taxes in its name or in the name of Lessor, and Lessor hereby
covenants and agrees to cooperate with Lessee in all respects with regards
thereto, provided that Lessee provides a surety bond or other security
reasonably satisfactory to Lessor to protect the Lessor and the Equipment from
the enforcement of any lien against the Equipment for any such Personal Property
Taxes during the period of contest. Lessor and Lessee agree to cooperate fully
with each other in regards to any such tax contest and in the preparation of all
tax returns, renditions or reports.

         (f) Should Lessee fail to pay the Personal Property Taxes as provided
in this Section 6, Lessor shall provide Lessee written notice of such failure
and allow Lessee thirty (30) days from receipt of such notice to pay the same,
failing which Lessor, may at its option, pay such Personal Property Taxes, in
which event Lessee shall reimburse Lessor upon demand for the costs thereof,
together with interest at the rate of l2% per annum as additional rent hereunder
from the date of expenditure by Lessor until repayment by Lessee.

         7.  INSURANCE AND SUBROGATION.

         (a) Lessee hereby covenants and agrees during the term of this Lease,
at its sole expense, to keep the Equipment fully insured against damage caused
by fire and other risks and to maintain liability insurance with respect to the
operation of its business in the Real Property, in such amounts, with such
insurers and with such coverages as are consistent with the coverages maintained
by Lessee in the operation of Lessee's business and other truck stop facilities.
Lessee may maintain any insurance coverages required by the terms of this Lease
under a blanket policy covering other assets of Lessee.

         (b) During the term of this Lease, Lessee agrees that upon request from
Lessor that Lessee will furnish to Lessor copies of the policies or certificates
of insurance described in subparagraph (a) above, and with respect to each
renewal thereof, evidencing the payment of the premiums due in connection
therewith.

         (c) Each fire and liability insurance policy obtained and maintained by
either Lessor or Lessee with respect to the Equipment and the Real Property
shall contain appropriate clauses pursuant to which the insurance companies
issuing such policies (i) waive all rights of subrogation against Lessee or
Lessor, as applicable, with respect to losses payable under such policies and/or

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(ii) agree that such policies shall not be invalidated because the insured has
hereby waived any and all right of recovery against Lessee for losses covered by
such policies.

         (d) Lessor hereby waives any and all rights of recovery which it might
otherwise have against Lessee, its directors, officers, partners, servants,
agents, or employees, for any loss, injury, or damage to the extent the same
could be covered by Lessor's insurance, notwithstanding that such loss, injury,
or damage may result from the negligence or fault of Lessee, its directors,
partners, officers, servants, agents or employees. Lessee hereby waives any and
all right of recovery which it might otherwise have against Lessor, its
partners, officers, servants, agents, or employees, for any loss, injury, or
damage to the extent the same could be covered by insurance, notwithstanding
that such loss, injury or damage may result from the negligence or fault of
Lessor, its partners, officers, servants, agents, or employees.

         (e) Lessor hereby covenants and agrees during the term of this Lease to
carry and maintain commercial general liability insurance, including contractual
indemnification coverage, in an amount of not less than One Million Dollars
($1,000,000.00) per occurrence, combined single limit, for injury and loss of
life and property damage, which commercial general liability coverage shall
cover any and all occurrences arising prior to the Effective Date of this Lease,
regardless of when the claims with regards to such occurrences are asserted.
Lessor shall, upon request of Lessee, provide Lessee evidence of such insurance
and of the payment of the premiums therefore.

         8. LOSS OR DESTRUCTION. Except as provided in Section 5 (d) above, in
the event that during the term of this Lease the Equipment, or any portion
thereof, is lost, stolen, destroyed or damaged, upon receipt of the insurance
proceeds with respect thereto, Lessee shall, to the extent of the insurance
proceeds, cause such Equipment to be repaired or replaced with comparable items.

         9. INDEMNITY. Lessee assumes liability for, and shall indemnify and
hold harmless Lessor, its agents and employees from, all liabilities, damages,
claims, actions, suits, costs, expenses and disbursements (including, but not
limited to, cost of suit, attorneys' fees and other legal expenses) of
whatsoever nature, imposed on, incurred by or asserted against Lessor in any way
relating to or arising out of Lessee's use or possession of the Equipment, or
from any action, omission or default under any of Lessee's undertakings in this
Lease, or in any other way related to the Equipment, except as may be occasioned
by the negligence, willful misconduct, or bad faith of Lessor, or the breach by
Lessor of any of its obligations under this Lease.

         10. ASSIGNMENT.

         (a) Lessee shall have the absolute right to assign Lessee's interest
under this Lease, in whole or in part, without the prior written consent of
Lessor, provided: (i) Lessee shall not then be in default in the performance and
observance of the terms and provisions of this Lease, and (ii) such transferee
shall assume all of the obligations of this Lease on the part of Lessee to be
performed.

         (b) Should Lessee make an assignment in accordance with the provisions
of subparagraph (a) above, Lessee shall not be released from any and all
liability under this Lease, except with the written consent of Lessor, which
shall not be unreasonably withheld or delayed.

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         11. NON-DISTURBANCE AGREEMENT(S). Upon the execution of this Lease, and
as a condition precedent to the obligation of Lessee to pay Rent under the terms
hereof and under the Real Property Lease, Lessor shall furnish to Lessee an
agreement of non-disturbance in form and substance acceptable in all respects to
Lessee and Lessor, executed by the holders of each Equipment Lien.

         12. DEFAULTS.

         (a) Lessee shall be deemed to be in default hereunder if: (i) Lessee
fails to pay the Rent due under the Real Estate Lease or any other charges due
under this Lease on or before the date on which the same are due, and such
failure continues for fifteen (15) days after written notice from Lessor or (ii)
Lessee fails to perform or observe any other term or condition contained in this
Lease within thirty (30) days after written notice from Lessor specifying such
default. In either of such events, Lessor may, immediately or at any time
thereafter and upon written notice to Lessee, as Lessor's sole and exclusive
remedy, terminate this Lease and repossess the Equipment, all without breach of
the peace.

         (b) In the event Lessor fails to perform or observe any term or
condition contained in this Lease or the Real Property Lease within thirty (30)
days after written notice from Lessee, Lessee may but shall not obligated to (i)
cancel this Lease upon written notice to Lessor, (ii) take any action
appropriate under the circumstances to preserve its possession and rights under
this Lease, (iii) perform any obligation or duty of the Lessor which the Lessor
refuses or neglects to perform, and in any such event, Lessee may notify Lessor
of the cost and expense thereof in which event Lessor shall, upon demand,
immediately reimburse Lessee for said cost and expense, and in the event Lessor
fails to reimburse Lessee within fifteen (15) days of the demand therefore,
Lessee shall be entitled to offset such amounts against future installments of
Rent as the same become due under the Real Property Lease and/or (iv) pursue any
other remedy available at law or in equity.

         (c) In the event the default of Lessor or Lessee cannot be cured within
the grace periods provided in subparagraphs (a) or (b) above, such default shall
be deemed to have been cured if the defaulting party shall have commenced
compliance within such grace period, and continues to prosecute the same with
due diligence.

         (d) In the event either party, at any time prior to termination of this
Lease institutes appropriate legal proceedings to contest the alleged default,
then the effect of any notice of default provided under subparagraph (a) above
shall be stayed during the pendency of the legal proceeding and no termination
shall occur nor may any other rights or remedies be exercised in reliance upon
or as a result of such notice, until such time as (i) a final, unappealable
order, award or judgment is entered in favor of Lessor and (ii) Lessee has been
granted thirty (30) days opportunity to cure the default, subject to the
provisions of subparagraph (c) above, subsequent to the date of entry of such
final order, award or judgment.

         13. MISCELLANEOUS.

         (a) Lessor may, at its option, in the event of Lessee's failure,
omission or inadequate compliance with any of its undertakings hereunder, make
all expenditures or do all other such acts and things necessary to fulfill and
satisfy Lessee's undertakings; and Lessee shall reimburse

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Lessor upon demand for the costs thereof, together with interest at the rate of
l2% per annum from the date of expenditure by Lessor until the date of
reimbursement by Lessee.

         (b) Notices hereunder shall be by certified mail, return receipt
requested, by facsimile transmission, or by overnight delivery service (e.g.,
Federal Express) and addressed, as follows:

if to Lessee to:           Petro Stopping Centers, L.P.
                           6080 Surety Drive
                           El Paso, Texas 79905
                           Attn: Legal Department
                           Phone No. (915) 774-4711
                           Fax No. (915) 774-7366

if to Lessor and
Messrs. Yasechko to:       Tewel Corporation and
                           Quadland Corporation
                           7041 Truck World Blvd.
                           Hubbard, Ohio  44425
                           Attention: Edward Yascehko, President
                           Phone No. (330) 534-1160
                           Fax No. (330) 534-6058

with a copy to:            Ronald James Rice Co., LPA
                           48 West Liberty Street
                           Hubbard, Ohio 44425
                           Fax No. (330) 534-3933

or to such other address or addresses as either party may give to the other,
from time to time, by notice as herein provided. Notice shall be deemed given
two (2) days after deposit in the United States mail if sent certified mail,
next day delivery if by overnight courier service and upon telecopy confirmation
if by facsimile transmission. Notice of a change in the identity or address of
any person to whom notice of any type is to be given or payment of any monies is
to be made, shall be effective only thirty (30) days after receipt.

         (c) Any failure by either Lessor or Lessee to enforce any of the
provisions of this Lease shall not be deemed a waiver of any of Lessor's or
Lessee's rights or remedies.

         (d) This Lease is executed and delivered pursuant to the Acquisition
Agreement and is subject to the terms and conditions thereof. This Lease and the
Acquisition Agreement contain the entire agreement between the parties hereto as
to the subject matters hereof. No modifications, alterations, changes, waiver or
estoppel to this Lease or any of the terms hereof shall be valid or binding
unless in writing and signed by a duly authorized officer of the party to be
charged.

         (e) Upon the expiration or termination of this Lease, Lessee shall
surrender possession of the Equipment in substantially the same condition as of
the Effective Date, ordinary wear and tear, damage by fire, the elements, or
casualty, excepted, and subject however to the provisions of Section 5(d)
herein.

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         (f) All of Lessee's Equipment, trade fixtures, furniture, furnishings,
equipment and other personalty owned or installed by Lessee on or about the Real
Property before or during the term hereof shall remain Lessee's property, and
Lessee, at any time and from time to time, including but not limited to the
expiration or termination of this Lease, may, but shall not be obligated to
remove the same.

         (g) Should Lessee holdover after the expiration of the term, such
holding over shall be deemed a tenancy from month-to-month subject to the
provisions, conditions and covenants in this Lease and such tenancy may be
terminated upon one (1) month's notice in writing by either party to the other.

         (h) The various rights and remedies of Lessor and Lessee reserved
herein shall be deemed to be cumulative, and, unless otherwise expressed herein
to the contrary, no one of them shall be deemed to be exclusive of any of the
other rights, or remedies as are now permitted, or may be hereafter allowed
either by law or in equity.

         (i) The covenants, agreements and obligations herein contained, except
as herein otherwise specifically provided, shall extend to, bind and inure to
the benefit of the parties hereto and their respective personal representatives,
heirs, successors, and assigns.

         (j) If any term or provision of this Lease shall, to any extent, be
held invalid or unenforceable, the remainder of this Lease shall not be affected
thereby, and each term and provision of this Lease shall continue to be valid
and be enforced to the fullest extent permitted by law.

         (k) Lessor and Quadland have jointly operated the Real Property and the
Equipment prior to the Effective Date of this Lease. While Quadland is the
record owner of the Real Property, the buildings, improvements and certain of
the personal property situated thereon, certain of the Equipment is owned by
Lessor. Quadland hereby consents to the transactions contemplated herein, and
does hereby lease all of its right, title and interest in and to the Equipment
to Lessee, subject to the terms of this Lease. By execution hereof Quadland
agrees to be bound by the provisions of this Lease, hereby makes each and every
covenant, representation and agreement made herein by Lessor to the extent of
its ownership interest in and to the Equipment and hereby assumes and agrees to
perform each and every obligation imposed upon the Lessor hereunder, to the
extent of its ownership of the Equipment.

         (l) Lessor, Quadland and Lessee agree to execute a Memorandum of this
Lease in the form of Exhibit E attached hereto and made a part hereof for
recording in the County Clerk's Records of Steuben County, Indiana, and in the
Uniform Commercial Code Record of Steuben County, Ohio and in the Ohio and
Indiana Secretary of State's Offices.

         (m) This Lease shall be governed by and construed in accordance with
the laws of the State of Indiana (other than the choice of law principles
thereof).

         (n) (i) Whenever the words "Lessor" and "Lessee" appear herein, each
shall be applicable to one or more persons, as the case may be, the singular
shall include the plural, and the neuter to include the masculine and feminine,
and if there shall be more than one, the obligations hereunder shall be joint
and several.

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          (ii) Wherever in this Lease reference is made to the "term hereof",
the same shall be deemed to read "as extended" so as to include the period of
extensions if Lessee shall exercise its option(s) to extend.

          (iii) The identity of the draftsperson of this Lease, be it Lessor or
Lessee, shall not affect the interpretation of this Lease.

          (iv) The headings used for the various Articles herein contained are
for convenient references only, and are not intended to define, construe or in
any manner limit the contents of such Articles.

          (v) This Lease may be executed in multiple counterpart copies, each of
which shall be deemed an original and all of which when taken together shall
constitute one in the same agreement.

     IN WITNESS WHEREOF, Lessor and Lessee have caused these presents to be
signed by their respective duly authorized officers, and their corporate seals
(if applicable) to be affixed hereto, as of the Effective Date.

                                   LESSOR:

                                   TEWEL CORPORATION, a Delaware corporation

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

                                   QUADLAND CORPORATION, an Ohio corporation

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

                                   ---------------------------------------------
                                   EDWARD T. YASECHKO

                                   ---------------------------------------------
                                   EDWARD J. YASECHKO

                                   LESSEE:

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                                  PETRO STOPPING CENTER, L.P., a
                                  Delaware limited partnership

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

                                       10<PAGE>

                                                                    EXHIBIT 10.6

                             PARTICIPATION AGREEMENT

       THIS AGREEMENT is made and entered into on the 8th day of May 2002 being
effective as of the 10th day of January 2001 by and between MARATHON OIL
COMPANY, an Ohio corporation ("Marathon"), and SYNTROLEUM CORPORATION, a
Delaware corporation ("Syntroleum").

       WHEREAS, Marathon and Syntroleum are parties to the Master Preferred
License Agreement under which Marathon was granted certain license rights in and
to the Syntroleum Process;

       WHEREAS, Marathon and Syntroleum are parties to the Intellectual Property
Agreement dated March 7, 1997 under which the Parties agreed to certain
additional matters relating to the Syntroleum Process;

       WHEREAS, Marathon and Syntroleum are parties to the Intellectual Property
Agreement dated March 21, 2001 under which the Parties agreed to certain matters
relating to Syntroleum's Product Refining Process;

       WHEREAS, Syntroleum is developing the Project under which Syntroleum will
build a small-footprint gas-to-liquids ("GTL") production facility and produce
GTL fuels using funds provided by the DOE, third parties, and Syntroleum; and

       WHEREAS, the Parties desire to enter into this Agreement under which
Marathon will participate in the Project on the terms and conditions set forth.

       NOW, THEREFORE, in consideration of the foregoing and of the mutual
premises and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows.

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

       The following terms when used in this Agreement, including its preamble
and recitals, shall, except where the context otherwise requires, have the
following meanings which shall be equally applicable to the singular and plural
forms thereof.

1.01.  "AFE" means an authorization for expenditure of funds as provided for in
       Article IV.

1.02.  "Affiliate" means, with respect to a specified Person, any other person
       that, directly or indirectly through one or more intermediaries,
       controls, is controlled by, or is under common control with, such
       specified Person. The term "control" means the possession, directly or
       indirectly, of the power to direct or cause the direction of management
       or policies of a Person, whether through ownership of securities, or the
       ability to exercise voting power, by contract or otherwise.

1.03.  "Agreement" means this Participation Agreement.

1.04.  "Background Technology" means:

      (a)  Marathon Background Technology. None.

      (b)  Syntroleum Background Technology. As to Syntroleum, all information,
           catalysts, data, techniques, developments, improvements, and the like
           relating to processes, methods, operating techniques, and apparatus
           useful in supporting or conducting Project activities to practice the
           Syntroleum Process and Product Refining Process, whether patentable
           or not, and which are disclosed in writing or other tangible form by
           Syntroleum to the Project and used in the Project during the Term of
           this Agreement and that were owned or otherwise available to
           Syntroleum on or before the Effective Date of this Agreement or
           developed independently or otherwise

                                        2

<PAGE>

           acquired by Syntroleum after the Effective Date and during the Term
           of this Agreement, subject to the exclusions as set forth in Section
           9.08 hereinafter. Syntroleum Background Technology shall include only
           that Syntroleum Confidential Information and Syntroleum Patent
           Rights, which are disclosed in writing or other tangible form by
           Syntroleum to the Project and used in the Project during the term of
           this Agreement and owned by Syntroleum on or before the Effective
           Date of this Agreement or developed independently or otherwise
           acquired by Syntroleum after the Effective Date of this Agreement,
           subject to the exclusions as set forth in Section 9.08 hereinafter;

      (c)  Information Disclosed By Third Parties Associated With Syntroleum.
           All information arising from, or subject to, separate agreements
           between Syntroleum and third parties which is disclosed to Marathon
           in writing or other tangible form by Syntroleum or such third parties
           will be deemed Background Technology to the extent and only to the
           extent that Syntroleum owns and/or has the right to license the
           information under such agreements and such information is used to
           support or conduct Project activities. All Syntroleum Background
           Technology shall, if disclosed by Syntroleum, be disclosed in writing
           and labeled "Syntroleum Background Technology"; and

      (d)  Patents/Copyrights Deemed Within Background Technology.
           Notwithstanding anything to the contrary within this Agreement, any
           patent or copyright owned or controlled (to the extent of being able
           to grant licenses thereunder without accounting to a third party
           which is not an Affiliate) by either Party that, absent this
           Agreement, would be infringed by the practice of Project Technology
           developed under this Agreement, shall be deemed to be the Background
           Technology of the Party which owns or controls such patent or
           copyright, and the other Party shall have the right to utilize and
           practice such Background Technology to the extent provided in Article
           VIII of this Agreement.

                                        3

<PAGE>

1.05.  "Barrel" means a volume of forty-two (42) U.S. standard gallons of two
       hundred thirty-one (231) cubic inches each, measured at sixty degrees
       Fahrenheit (60(degree)F) and one (1) atmosphere pressure.

1.06.  "Cherry Point Pilot Plant" means the GTL pilot facility located at
       Atlantic Richfield's Cherry Point Refinery in Blaine, Washington
       constructed and operated by Syntroleum and Atlantic Richfield under a
       Joint Development Agreement between Syntroleum and Atlantic Richfield
       dated January 1, 1998.

1.07.  "Confidential Information" means the respective information of a Party
       hereto concerning its Background Technology which is disclosed to the
       other Party under this Agreement in furtherance of the Project, together
       with any formula, pattern, compilation, program, apparatus, device,
       drawing, schematic, method, technique, know-how, process or pilot plant
       data, and other non-public information relating to the Project, such as
       business plans or other technology, that: derives economic value, actual
       or potential, from not being generally known to, and not being readily
       ascertainable by proper means by other persons who can obtain economic
       value from its disclosure or use; and is the subject of efforts that are
       reasonable under the circumstances to maintain its secrecy. Confidential
       Information shall be disclosed in writing and labeled as "Confidential"
       or the equivalent, or if disclosed verbally or in other non-written form,
       it shall be summarized and transmitted in writing or other tangible form
       and the summary labeled "Confidential" or the equivalent by the
       disclosing Party within the later of sixty (60) days from the date of the
       last signature to this Agreement or thirty (30) days of such disclosure.
       Any information deemed confidential by a Party and disclosed to the other
       Party during the term of this Agreement, but not applicable to or
       otherwise used in the Project, shall be subject to the applicable
       confidentiality provisions of the other written agreements between the
       Parties.

1.08.  "Contractor" means any Person hereunder approved and chosen to carry out
       any portion of the work associated with the Project described in Article
       II.

                                        4

<PAGE>

1.09.  "Conversion Process" means any process for the conversion of hydrocarbons
       which are normally gaseous at ambient temperature and pressure into a
       mixture of hydrocarbons which may be a combination of normally gaseous,
       liquid, or solid hydrocarbons at ambient temperatures and pressures and
       comprised of (a) autothermal reforming, partial oxidation, steam
       reforming or any combination thereof, of a feed stream consisting
       substantially of gaseous hydrocarbons in the presence of air or oxygen
       enriched air to create an intermediate feed stream containing carbon
       monoxide and molecular hydrogen, and (b) reacting the intermediate feed
       stream in the presence of a Fischer-Tropsch catalyst to produce a product
       stream consisting of any combination of gaseous, liquid or solid
       hydrocarbons at ambient temperature and pressure. The Conversion Process
       includes all associated internal processes and technologies such as
       pre-heating and conditioning of the feedstock, heat integration,
       separation or the recycle, use, or consumption of hydrocarbons or other
       products and post-processing the Fischer-Tropsch product stream into
       finished synthetic hydrocarbon products. The Conversion Process does not
       include any technology related to the pretreatment of the natural gas
       feedstock for a purpose other than that defined above.

1.10.  "Cooperative Agreement" means the Cooperative Agreement No.
       DE-FC26-01NT41099, dated July 20, 2001, between the DOE and Integrated
       Concepts & Research Corporation relating to the Project.

1.11.  "Cooperative Agreement Subcontract" means the subcontract between
       Syntroleum and Integrated Concepts & Research Corporation, dated October
       1, 2001, attached hereto as Exhibit B, relating to certain tasks under
       the Cooperative Agreement which are subcontracted to Syntroleum.

1.12.  "DOE" means the United States Department of Energy.

                                        5

<PAGE>

1.13.  "Effective Date" means the effective date of this Agreement as set forth
       in the first paragraph on page one of this Agreement.

1.14.  "Executive Committee" means the committee to provide overall direction
       and management to the Project as provided in Section 3.02.

1.15.  "Executive Director" means the representative designated by a Party to
       serve on the Executive Committee and entitled to cast that Party's vote
       on matters coming before the Executive Committee as provided in Article
       III.

1.16.  "Fischer-Tropsch Reaction" means the catalytic reaction of carbon
       monoxide and hydrogen, the primary commercial products of which are
       hydrocarbons.

1.17.  "Fuel Products" means finished hydrocarbon fuels, hydrocarbons consumed
       as fuel, or fuel blending stocks including, but not limited to, diesel,
       kerosene, gasoline, and naphtha produced primarily from Synthetic
       Products which have a carbon range of C2 to C25, and are liquid at 60
       degrees F and one atmosphere of pressure, and expressly excluding waxes,
       chemicals, chemical feedstocks, lubricants (including, without
       limitation, automotive lubricating oils such as PCMO, HDD, transmission
       and hydraulic fluids, gear oils, industrial lubricants such as
       metalworking lubricants, process oils, white oils, agricultural spray
       oils, defoamers, cutting and quenching oils, rubber processing oils,
       greases, and drilling fluids, or any other specialty hydrocarbon
       products).

1.18.  "Inventions" shall have the meanings provided in Section 8.04
       hereinafter.

1.19.  "Licensed Plant" means a plant as licensed to operate pursuant to a Site
       License Agreement issued under the terms of the Master Preferred License
       Agreement.

                                        6

<PAGE>

1.20.  "Master Preferred License Agreement" means the Master Preferred License
       Agreement dated March 7, 1997 between the Parties referenced in the
       recitals on page one of this Agreement.

1.21.  "Net License Fees" means all fees and royalties received by Syntroleum,
       when collected and unencumbered, from licenses issued by Syntroleum to
       Marathon or its Affiliates, reduced by all licensing commissions paid to
       others and the cost of all process guarantees provided through others
       which Syntroleum is otherwise contractually committed to make. Net
       License Fees shall not include fees paid to Syntroleum for the purchase
       of catalysts, catalyst mark-ups, or for services rendered by Syntroleum
       directly or through third parties in connection with any process design
       package, plant design, start-up, commissioning, or training. In no case
       shall Net License Fees be less than US $0.25 per Barrel of Synthetic
       Product.

1.22.  "Party" means Syntroleum or Marathon and "Parties" means Syntroleum and
       Marathon

1.23.  "Person" means any natural person, corporation, partnership, limited
       liability company, joint venture, firm, unincorporated organization,
       association, trust, government, governmental agency or any other entity,
       other than the Parties.

1.24.  "Product Refining IP Agreement" means the Intellectual Property Agreement
       between the Parties dated March 21, 2001.

1.25.  "Product Refining Process" means any chemical and mechanical processes
       and related catalysts, technology and apparatus for the processing of
       Synthetic Products to Fuel Products.

1.26.  "Project" means the activities associated with this Agreement as set
       forth in Article II.

                                        7

<PAGE>

1.27.  "Project Copyrights" means all copyrights based upon writings, computer
       programs, drawings or other copyrightable works produced by or on behalf
       of the Parties and/or Contractors and resulting directly from the
       Project, subject to the exclusions as set forth in Section 9.08.

1.28.  "Project Fischer-Tropsch Catalysts" means any Fischer-Tropsch Catalysts
       utilized or developed in connection with the Project.

1.29.  "Project Fischer-Tropsch Catalyst Information" means any information
       relating to the composition, manufacture, and chemical treatment of
       Project Fischer-Tropsch Catalysts, such as catalyst formulations,
       activation procedures, conditioning procedures, start-up procedures, or
       regeneration procedures, disclosed to the Project by Syntroleum for
       Project Fischer-Tropsch Catalysts.

1.30.  "Project Patent Rights" means the claims or equivalent of claims of all
       U.S. and foreign patents and published patent applications to the extent
       that said claims or claim equivalents are based on Inventions conceived,
       developed or reduced to practice by or on behalf of the Parties and/or
       Contractors and resulting directly from the Project.

1.31.  "Project Technology" means all intellectual property and intellectual
       property rights therein, including, without limitation, research work,
       research results, data, information, Inventions, discoveries,
       improvements, know-how, trade secrets, copyrights and software (source
       and machine-readable code), whether or not patentable, which are
       developed, acquired or conceived pursuant to the work performed for or as
       a direct consequence of the Project, notwithstanding any contrary label
       or marking placed thereon by a Party. Project Technology shall include,
       but not be limited to, Project Patent Rights and Project Copyrights.

1.32.  "SFP" means the small footprint gas-to-liquids production facility to be
       designed, constructed, and operated as part of the Project.

                                        8

<PAGE>

1.33.  "SFP Information" means any SFP design, test or operating information
       concerning the Syntroleum Process or the Product Refining Process which
       is generated by activities conducted for the Project during the Term of
       this Agreement by or at the SFP, subject to the exclusions as set forth
       in Section 9.08.

1.34.  "Site License Agreement" means an agreement which grants the right to
       build and operate a single Licensed Plant under the terms of the Master
       Preferred License Agreement, specifying in each case the fixed site and
       the nominal design capacity, in Barrels of Synthetic Products produced
       per day.

1.35.  "Synthetic Products" means those hydrocarbons, having a chemical
       composition substantially consisting of molecules with five or more
       carbon atoms each, produced using the Syntroleum Process at a Licensed
       Plant.

1.36.  "Syntroleum Catalyst Information" means Syntroleum information and
       know-how relating to any catalyst, catalyst formulation, conditioning
       procedure, reduction procedure, activation procedure, start-up procedure,
       regeneration procedure, or performance which is considered to be
       proprietary by and to Syntroleum or which is acquired by Syntroleum and
       which is useful in the practice of the Syntroleum Process (including,
       without limitation, autothermal reforming catalysts, Fischer-Tropsch
       catalysts and hydrocarbon product upgrading catalysts).

1.37.  "Syntroleum Catalyst Patent Rights" means all Syntroleum patents and
       patent applications of all relevant countries to the extent that the
       claims cover features or aspects of catalysts useable in the Syntroleum
       Process, including, without limitation, autothermal reforming catalysts,
       Fischer-Tropsch catalysts, and hydrocarbon product upgrading catalysts,
       and expressly excluding any process operating techniques or apparatus or
       methods for manufacturing such catalysts.

                                        9

<PAGE>

1.38.  "Syntroleum Patent Rights" means Syntroleum patents and patent
       applications of all relevant countries to the extent that the claims
       cover features or aspects of the Syntroleum Process including, without
       limitation, any operating techniques and apparatus and expressly
       excluding Syntroleum Catalyst Patent Rights.

1.39.  "Syntroleum Process" means Syntroleum Technical Information and
       Syntroleum Patent Rights related to the practice of the Conversion
       Process and Syntroleum Catalyst Information and Syntroleum Catalyst
       Patent Rights related to the use of Syntroleum catalysts in the practice
       of the Conversion Process.

1.40.  "Syntroleum Process IP Agreement" means the Intellectual Property
       Agreement between the Parties dated March 7, 1997.

1.41.  "Synthetic Products" means those products produced by a process utilizing
       a Fischer-Tropsch reaction.

1.42.  "Syntroleum Technical Information" means Syntroleum information and
       know-how relating to the Syntroleum Process including, without
       limitation, operating techniques and apparatus for carrying out the
       Syntroleum Process and expressly excluding Syntroleum Catalyst
       Information and information relating to process reactors.

1.43.  "Term" shall have the meaning as set forth in Article V.

                                   ARTICLE II

                                  PROJECT SCOPE

2.01.  Project Scope. Subject to the terms and conditions of this Agreement, the
       Project shall consist of the following activities:

      (a)  Design. The Parties shall design the SFP based on the design of the
           Cherry Point

                                       10

<PAGE>

           Pilot Plant and using the Syntroleum Process to produce approximately
           70 barrels per day of Fuel Products and to otherwise meet the
           requirements of the Cooperative Agreement Subcontract. The SFP will
           also include the following components that are outside the scope of,
           but in no way inconsistent with, the Cooperative Agreement
           Subcontract: (i) an on-site Fischer-Tropsch catalyst regeneration
           unit sized to enable continuous SFP operation; and (ii) a gas turbine
           that powers plant air compression and combusts plant tail gas.

      (b)  Relocation and Construction. The Parties shall (i) choose a site for
           the SFP in or near Tulsa, Oklahoma, (ii) obtain all necessary permits
           for construction and operation of the SFP, (iii) dismantle and
           transport agreed upon components from the Cherry Point Pilot Plant to
           the identified SFP site, and (iv) construct the SFP.

      (c)  Start-up and Operation. Upon completion of construction of the SFP,
           Syntroleum shall conduct full SFP start-up and operating activities,
           demonstrating sustained steady-state operations, operational safety,
           and continuous production of Fuel Products meeting the specifications
           required by the Cooperative Agreement Subcontract. After SFP
           start-up, Syntroleum shall operate the SFP to provide the types and
           volumes of Fuel Products required by the Cooperative Agreement
           Subcontract.

                                   ARTICLE III

                         PROJECT MANAGEMENT AND REPORTS

3.01.  General. Except as may otherwise be expressly set forth to the contrary
       in this Agreement, the Project shall be governed by a committee (the
       "Executive Committee") that will provide overall direction, supervision
       and decision-making authority for the Project as described in Article II.

3.02.  Executive Committee

                                       11

<PAGE>

      (a)  Powers. Except as may otherwise be expressly set forth to the
           contrary in this Agreement, the Executive Committee shall have
           authority and power to make all decisions and do all things necessary
           or appropriate to carry out the Project, including, without
           limitation, the power to delegate authority to make such decisions
           and do such things as the Executive Committee shall, from time to
           time and in its sole discretion, deem appropriate; provided, however,
           that the actions of the Executive Committee shall not be contrary to
           this Agreement, shall not be inconsistent with the Cooperative
           Agreement or the Cooperative Agreement Subcontract, and shall not
           intentionally violate any applicable laws which govern the subject
           matter of this Agreement. Notwithstanding any provision of this
           Agreement to the contrary, the Executive Committee shall have
           exclusive and non-delegable responsibility for the following matters
           in connection with the Project: material changes to the Project, or
           amendments to this Agreement, none of which shall have any effect
           unless reduced to writing executed by authorized representatives of
           the Parties as provided under Section 3.02(b); preparation and
           approval of the Project budget, approval of which shall require the
           unanimous consent of all Project participants; all policy matters,
           including policies concerning communications or publications in any
           medium pursuant to Article XII and policies concerning other external
           matters that might affect the Project; legal matters; ultimate
           oversight respecting organization and staffing matters; approval of
           any changes to the scope of the Project and Project budget; and
           approval of or amendment to any AFE.

      (b)  Composition. Pending the addition of any other participants in the
           Project, the Executive Committee shall consist of two representatives
           from Syntroleum and one representative from Marathon (each an
           "Executive Director") who shall each be entitled to one (1) vote on
           all matters considered by the Executive Committee. Decisions by the
           Executive Committee shall be by majority vote of the respective
           Executive Directors, except as otherwise provided in this Agreement.
           Unless changed after the Effective Date on written notice to the
           other Party, the following

                                       12

<PAGE>

           persons are designated Executive Directors for each Party:

           Marathon:     Lary Kocher

           Syntroleum:   Branch Russell
                         Jeff Bigger

           Membership of the Executive Committee will be expanded to include
           representatives from additional participants who join the Project
           after the Effective Date, provided that Marathon shall at all times
           have at least one Executive Director on the Executive Committee and
           Syntroleum shall at all times have the right to appoint a majority of
           the Executive Directors, provided, that in the event (1) Syntroleum
           undergoes a Change in Control, or (2) Syntroleum's current assets
           minus current liabilities as set forth on its most recent audited or
           unaudited balance sheet filed with the Securities and Exchange
           Commission with Form 10-K or Form 10-Q falls below $10.0 million
           (excluding any liabilities associated with prepaid license fees), or
           (3) Syntroleum suffers an Event of Default under the Promissory Note
           attached hereto as Exhibit C, Marathon shall be immediately entitled
           to appoint the minimum additional number of Executive Directors
           necessary to constitute a majority of the Executive Committee. For
           purposes of this Agreement, "Change in Control" has the meaning
           defined in the attached Promissory Note. In the event that Marathon
           appoints a majority of the Executive Committee pursuant to this
           Section 3.02(b), Syntroleum agrees to provide continued access to the
           SFP and provide or make available to the Project all services and
           utilities at Syntroleum's cost, which shall include, without
           limitation, any water, electricity, gas and other utilities and
           services necessary to operate the SFP and complete the Project.
           Syntroleum shall further assist in obtaining all necessary licensing
           rights, catalysts and other facilities and services necessary to
           operate the SFP and complete the Project.

                                       13

<PAGE>

      (c)  Meetings. The Executive Committee shall meet on a regular basis as
           mutually agreed on by the Parties' Executive Directors, but not less
           than one (1) time during each calendar quarter that ends in the
           months of March, June, September and December, respectively, of a
           given calendar year during the Term of this Agreement, to coordinate
           Project activities, adjust Project goals and timetables, exchange
           information, and consider Project patent and other intellectual
           property matters. Emergency meetings of the Executive Committee may
           be convened at the request of any Executive Director. Each meeting
           shall be convened by mutual agreement of the Parties' Executive
           Directors as to the date, location, and agenda of the meeting, and as
           to whether the meeting will be in person or by telephone conference
           or similar device. The proceedings of each meeting of the Executive
           Committee shall be recorded and written minutes of such meeting
           circulated to each Party and approved by the Executive Committee.

3.03.  Financial Reporting. Syntroleum shall prepare financial reports depicting
       the actual and accrued costs and expenses incurred by the Project, which
       reports shall be submitted to the Executive Committee on a quarterly
       basis by the end of the month following the end of each calendar quarter
       during the Term of this Agreement, beginning with the calendar quarter
       ending December 31, 2001.

3.04.  Access to Information. Each Party agrees that the other Party's
       representatives hereto shall have access to and the right to be present
       at all Project activities conducted by the Party. Subject to the terms
       and conditions of this Agreement, each Party agrees that all relevant
       information and data generated by a Party under this Agreement shall be
       shared with the other Party.

3.05.  Training. The parties anticipate that the SFP will be available for
       training of Marathon operator personnel and, subject to appropriate
       confidentiality agreements with Syntroleum, Marathon's partners. Such
       training shall be at no expense to the Project or

                                       14

<PAGE>

       Syntroleum and, during the term of this Agreement, shall not be
       inconsistent with the Cooperative Agreement Subcontract and shall be
       subject to the approval to the Executive Committee. The Parties agree
       that, after the expiration of this Agreement, the SFP will continue to be
       available to Marathon for training purposes at Marathon's own expense.
       Marathon will provide 60 days notice prior to any training requested
       pursuant to this section 3.05.

                                   ARTICLE IV

                            FUNDING AND PARTICIPATION

4.01.  Project Costs. Syntroleum shall: (a) pay the Project costs as such costs
       are incurred; (b) obtain reimbursement of Project costs from the DOE
       pursuant to the Cooperative Agreement Subcontract; and (c) obtain
       reimbursement from other Project participants, including Marathon, as set
       forth in Section 4.02.

4.02.  Marathon Cash Contributions. Marathon shall pay Syntroleum up to a
       maximum of $5,000,000 in Project costs, payable as follows:

      (a)  $ 3,000,000 by December 31, 2001
      (b)  $ 1,000,000 by March 31, 2002
      (c)  $ 1,000,000 by March 31, 2003.

4.03.  Marathon Personnel Contributions. Marathon shall provide to the Project
       up to $3 million worth of personnel time, which shall consist of no more
       than five (5) full time equivalent professionals dedicated to the
       Project. Such personnel shall perform such tasks as are assigned by the
       Executive Committee. Marathon shall, at any time during the Project, have
       the option to contribute additional personnel to the Project at no cost
       to the Project. Marathon shall prepare and provide to Syntroleum on a
       quarterly basis by the end of the month following the end of each
       calendar quarter financial reports depicting the actual personnel time
       and associated costs and expenses incurred by

                                       15

<PAGE>

       Marathon in connection with the Project under this Section 4.03.

4.04.  Exclusions to Project Budget. All costs or expenses incurred by a Party
       in monitoring the progress of the Project or in conducting any activity
       which is not specifically provided in the Project budget as approved by
       the Executive Committee shall be the sole responsibility of the Party
       which incurs such costs and expenses. Unless specifically provided in the
       Project budget, all costs and expenses incurred by the employees or other
       representatives of a Party for travel to or from activities associated
       with the Project shall be the sole responsibility of the Party that
       employs or retains them. The Parties further acknowledge and agree that
       each Party shall be solely responsible for the costs and expenses
       associated with the attendance by that Party's Executive Directors at any
       Executive Committee meetings.

4.05.  Credit to Marathon.

      (a) Under the conditions described below, Syntroleum agrees to allow
          Marathon a credit on current or future Net License Fees payable by
          Marathon to Syntroleum for Marathon's expenditures of up to:

        (i)   $375,000 for process design and engineering for the SFP and
              associated personnel time;

        (ii)  $814,000 for costs to disassemble the Cherry Point Pilot Plant and
              transport it to Tulsa, Oklahoma; and

        (iii) the value of any outstanding loan balance, including accrued
              interest, under the attached Promissory Note converted by Marathon
              to license fee credits pursuant to Sections 4(c)(ii) or
              4(d)(ii)(y) of the Promissory Note.

           The work for which such credit is granted is described in more detail
           in the July 6, 2001 letter agreement between Marathon and Syntroleum
           attached as Exhibit B. This credit shall be applied at a rate of
           US$.50 per US$1.00 of Net License Fees payable to Syntroleum under
           Site Licenses executed by Marathon under the Master Preferred

                                       16

<PAGE>

           License Agreement.

      (b)  Any remaining expenditures made by Marathon in the SFP pursuant to
           Sections 4.02 and 4.03 of this Agreement shall also be eligible for
           credit against Net License Fees (at the same rate set forth in
           Section 4.05(a) above), but shall be subject to the following
           additional limitations:

        (i)   the credit is applicable only to Site Licenses or any Product
              Refining Process license executed by Marathon within five years of
              SFP startup;

        (ii)  for Site Licenses or any Product Refining Process license executed
              within three years of SFP startup, one-hundred percent (100%) of
              Marathon's expenditures in the SFP shall be eligible for credit;
              and

        (iii) for Site Licenses or any Product Refining Process license executed
              in years four (4) and five (5) after SFP startup, seventy-five
              (75%) of Marathon's expenditures in the SFP shall be eligible for
              credit; and

        (iv)  no credit shall be allowed for Site Licenses executed by Marathon
              after five years from SFP start-up.

        Credited Marathon expenditures shall not include Marathon's internal
        administrative, project management, technical/management committee
        representation costs, or costs incurred by Marathon to have additional
        personnel involved in the SFP beyond those being contributed to the
        project under Section 4.03 above, but shall include cash contributions
        as well as salaries and direct burden of manpower contributed to the SFP
        integrated Project team by Marathon under Section 4.03 above.

4.06.  Additional Marathon Funding.

      (a)  In the event that, at any time during the term of this Agreement,
           Project capital contributions from Marathon under Section 4.02 of
           this Agreement and Project

                                       17

<PAGE>

           capital contributions from other participants are inadequate to meet
           the ongoing cash requirements of the Project, Marathon agrees to make
           one or more loans (collectively, the "Loan") to the Project in an
           aggregate amount not to exceed $19,000,000 as requested by Syntroleum
           and approved by the Executive Committee and in accordance with the
           terms and conditions set forth in the Promissory Note, attached
           hereto as Exhibit C.

                                    ARTICLE V

                                      TERM

       The term of this Agreement shall begin with the Effective Date and
continue thereafter until Syntroleum has satisfied its fuel delivery obligations
under the Cooperative Agreement Subcontract, unless terminated earlier in
accordance with Article VI hereof or extended by mutual written agreement of the
Parties. If Marathon desires to continue its participation in the operation of
the SFP beyond the termination date, then Marathon shall provide written notice
to Syntroleum prior to the termination date and the Parties shall negotiate in
good faith to continue their joint activities related to the SFP.

                                   ARTICLE VI

                                   TERMINATION

6.01.  Termination for Cause. In the event that either Party to this Agreement
       is deemed by the other Party to be in material default of any term of
       this Agreement, the non-defaulting Party may give the defaulting Party
       written notice of such default and specify the particulars of such
       default. If the defaulting Party fails to remedy such default within 30
       days of such notice, then the non-defaulting Party may terminate this
       Agreement on written notice to the defaulting Party prior to the
       remedying of the default. Termination under this Section 6.01 shall be
       without prejudice to any claim or remedy which the non-defaulting Party
       may have on account of the default.

                                       18

<PAGE>

6.02.  Early Termination of Cooperative Agreement Subcontract. In the event that
       the Cooperative Agreement Subcontract is terminated before Syntroleum
       satisfies its fuel delivery obligations under that agreement, then this
       Agreement shall terminate within ten days after termination of the
       Cooperative Agreement Subcontract unless Marathon and Syntroleum mutually
       agree in writing to extend this Agreement for an additional period.

6.03.  Obligations Following Termination. In the event of termination,
       Syntroleum shall be entitled to continue all work related to the Project.
       Marathon's only obligation to Syntroleum as a result of such termination
       shall be the payment to Syntroleum for amounts due by Marathon for work
       performed by Syntroleum prior to the date of termination, including
       amounts for non-cancelable orders for materials and equipment.

6.04.  Survival of Rights and Obligations. The rights and obligations as set
       forth in Sections 4.05 and 4.06 and Articles VIII, IX, X, XI, XII, XIII,
       XIV, and XVI shall be irrevocable and shall survive the expiration or
       earlier termination of this Agreement.

                                   ARTICLE VII

                                  PARTICIPANTS

       Participation in the Project shall be open to other licensees of the
Syntroleum Process under terms and conditions no more favorable than the terms
granted to Marathon under this Agreement.

                                  ARTICLE VIII

                              INTELLECTUAL PROPERTY

8.01.  Ownership of Project Technology. All right, title and interest throughout
       the world in and to Project Technology shall be owned by Syntroleum,
       subject to the obligation of Syntroleum to grant the rights and licenses
       in such Project Technology to Marathon as set forth hereinafter. Marathon
       agrees to and does hereby assign, convey, and transfer all

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<PAGE>

       right, title, and interest in Project Technology to Syntroleum, subject
       to the grant of rights and licenses in such Project Technology as
       provided for in this Agreement.

8.02.  License Grants of Project Technology. In exchange for Marathon's funding
       of the Project as set forth in Article IV, Syntroleum grants to Marathon
       the following rights:

      (a)  Fields Outside of the Syntroleum Process and Product Refining
           Process. Syntroleum shall grant and hereby does grant to Marathon a
           non-exclusive, irrevocable, royalty-free, non-transferable (except as
           otherwise provided in Section 16.10), and world-wide right (without
           rights to sublicense third parties except as provided in Section
           8.02(b)) to make, have made, use, and have used Project Technology,
           and to copy, display, perform, use, prepare derivative works based on
           or distributed under any and all Project Copyrights, for any fields
           of use other than the Syntroleum Process or Product Refining Process,
           except the foregoing grant shall be subject to the exclusions as
           provided by Section 9.08 hereinafter.

      (b)  Field of the Syntroleum Process. Within the field of the Syntroleum
           Process, such Project Technology shall be included within the
           technology defined as "Licensor Technology" as provided in the Master
           Preferred License Agreement and Syntroleum shall grant and does
           hereby grant to Marathon rights to use said Project Technology
           consistent with and according to all of the rights, licenses, and
           obligations as provided in the Master Preferred License Agreement and
           the Syntroleum Process Intellectual Property Agreement, the terms and
           conditions of which are incorporated herein by this reference.

      (c)  Field of the Product Refining Process. Syntroleum grants no rights to
           Marathon under this Agreement to practice or utilize Project
           Technology in the field of the Product Refining Process.

8.03.  Syntroleum Background Technology. Syntroleum Background Technology shall
       remain

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<PAGE>

       the property of Syntroleum; provided, however, that (i) within the field
       of the Syntroleum Process, such Syntroleum Background Technology
       (specifically excluding the Product Refining Process) shall be included
       within the technology identified as "Licensor Technology" as provided in
       the Master Preferred License Agreement and Syntroleum shall grant and
       does hereby grant to Marathon rights to use the Syntroleum Background
       Technology consistent with and according to all of the rights, licenses,
       and obligations as provided in the Master Preferred License Agreement and
       the Syntroleum Process IP Agreement, the terms and conditions of which
       are incorporated herein by this reference, and (ii) only to the extent
       necessary to practice the grants in Section 8.02(a) and (b), Syntroleum
       shall grant and hereby does grant to Marathon a non-exclusive,
       irrevocable, royalty-free, non-transferable (except as otherwise provided
       in Section 16.10), and world-wide right to, in the case of Section
       8.02(a), make, have made, use, and have used such Syntroleum Background
       Technology.

8.04.  Patenting of Project Technology

      (a)  Disclosure of Inventions. Each Party hereto agrees to promptly
           disclose to the other Party all inventions, whether patentable or
           unpatentable, which are conceived, developed, or reduced to practice
           by or on behalf of the Parties and/or Contractors and resulting
           directly from the Project (hereafter "Inventions"), except that
           Syntroleum shall have the sole discretion as to disclosure of
           information in its possession or control concerning Inventions
           relating to the composition of Syntroleum and/or Project
           Fischer-Tropsch Catalysts and Project Fischer-Tropsch Catalyst
           Information.

      (b)  Patent Application. Subject to any obligations of the Parties under
           the Cooperative Agreement regarding intellectual property rights, the
           Executive Committee shall meet and discuss whether to file patent
           applications for an Invention, and, if so, the respective countries
           in which to file such applications. With respect to:

                                       21

<PAGE>

        (i)   Inventions which concern the composition, manufacture, physical
              properties and treatment of Syntroleum and/or Project
              Fischer-Tropsch Catalysts, Syntroleum shall have the sole
              responsibility and authority for deciding whether to prepare,
              file, and prosecute patent applications to obtain Project Patent
              Rights for such Inventions and to maintain and enforce the Project
              Patent Rights that issue thereon.

        (ii)  As to all other Inventions not covered by Section 8.04(b)(i)
              above, if Syntroleum agrees that patent applications should be
              filed, then Syntroleum shall have the sole responsibility and
              authority to prepare, file, and prosecute such patent applications
              to obtain Project Patent Rights for such Inventions and to
              maintain and enforce the Project Patent Rights that issue thereon.
              However, if Syntroleum does not agree with Marathon that patent
              applications should be filed in any one or more countries for
              Inventions subject to this subparagraph (ii), then Marathon may
              file such patent applications in those countries and,
              notwithstanding Section 8.01 above, such applications and any
              Project Patent Rights issuing thereon shall be owned by Marathon.
              As to such patent applications, Marathon shall have sole
              responsibility and authority to prepare, file, and prosecute such
              patent applications to obtain Project Patent Rights for such
              Inventions and to maintain and enforce the Project Patent Rights
              that issue thereon. As to such Project Patent Rights obtained by
              Marathon, Marathon shall grant and hereby does grant to Syntroleum
              a nonexclusive, irrevocable, royalty-free, non-transferable
              (except as provided in Section 16.10), and worldwide license to
              make, have made, use, have used, and sub-license to third parties
              such Marathon owned Project Patent Rights.

      (c)  Patent Application Costs. The cost to prepare, file, and prosecute
           patent applications to obtain Project Patent Rights for Inventions
           and to maintain and enforce the Project Patent Rights that issue
           thereon shall be at the sole expense of the Party which owns such
           patent applications and Project Patent Rights. None of

                                       22

<PAGE>

           the costs associated with patent applications or maintaining or
           enforcing Project Patent Rights for an Invention shall be paid for
           out of the Project budget.

      (d)  Cooperation on Patent Matters. Each Party agrees that it will
           cooperate and take all reasonable actions and execute legally
           required documents, and shall cause their respective employees,
           agents and contractors to cooperate and take all reasonable actions
           and execute all legally required documents as are necessary or
           appropriate to carry out the provisions of this Article VIII or to
           assist each other in the preparation, filing and prosecution of
           patent applications or securing such protection as referenced in this
           Article VIII when so requested. With respect to any patent
           applications filed under this Article VIII, each Party agrees to keep
           the other Party informed as to the status of applications and patents
           from time to time and upon written request by the other Party.

8.05.  Licensing. Syntroleum shall have the right to grant royalty-bearing
       licenses under Project Technology to third parties which undertake in
       writing with Syntroleum an obligation (a) limiting such third party's
       disclosure and use of the Project Technology, which obligation shall be
       at least as restrictive as the obligations undertaken by Marathon
       hereunder; and (b) to defend, indemnify and hold Marathon, its
       Affiliates, and the respective officers, directors, employees, and agents
       of all of them, harmless from any and all claims, actual or threatened,
       relating to such third party's use of the Project Technology, including,
       but not limited to, patent, copyright, or other proprietary right
       infringement and misappropriation of trade secrets. Syntroleum further
       agrees that it will make no warranty or other representation on behalf of
       Marathon in any such third party license agreement, and that Syntroleum
       shall ensure that (a) any liability limitation placed by Syntroleum in
       such third party license agreements shall also apply to Marathon and (b)
       a disclaimer will be added to disclaim and release Marathon from any and
       all liability associated with the third party's use of the Project
       Technology.

8.06.  No Implied License Intended. Unless expressly provided for in this
       Agreement, there is

                                       23

<PAGE>

       no implied license intended or granted by either Party under any of its
       existing or future patents or intellectual property rights to the other
       Party as a result of this Agreement.

8.07.  Pre-existing Patent Rights. If either Party that discloses Background
       Technology which is used in the Project pursuant to the provisions of
       this Agreement becomes aware of information that causes it to believe
       that use of such Background Technology has a significant possibility of
       infringing one or more patents or copyrights, or constitute trade secret
       misappropriation, then such Party shall promptly notify the other Party,
       as applicable, provided, however, that no failure to give such notice, by
       itself, shall (i) impose any liability on such Party as a consequence of
       such failure or (ii) have the effect of creating an implied license
       respecting any such patent, but only in the event that such failure shall
       not have been due to such Party's bad faith, fraud, willful misconduct,
       or gross negligence.

8.08.  Third Party Technology. To the extent that Syntroleum desires to
       incorporate proprietary technology or equipment from third parties
       ("Third Party Technology") which (a) is available from only one third
       party provider; or (b) requires a license agreement with such third party
       provider in order to use said Third Party Technology to carry out the
       Project or continued exploitation of Project Technology, then prior to
       incorporating such Third Party Technology into the Project Syntroleum
       will notify Marathon of its desire to use such technology. Nothing in
       this Agreement shall be construed as otherwise restricting the ability of
       Syntroleum to use Third Party Technology in connection with activities
       under the Project, provided that Syntroleum obtains a written statement
       from the Third Party Technology provider that states said technology is
       presently or will be offered commercially to the oil and gas industry,
       including Marathon, Syntroleum, and any licensees of Syntroleum. The
       Parties agree to work together, where possible, to enable Syntroleum to
       secure sublicense rights for any such technology for the benefit of
       Syntroleum's licensees.

                                       24

<PAGE>

                                   ARTICLE IX

                                 CONFIDENTIALITY

9.01.  Confidential Information. All Confidential Information of a Party
       disclosed in furtherance of this Agreement shall be maintained in
       confidence by the other Party as follows:

      (a)  Marathon Obligations. Marathon agrees that Syntroleum Confidential
           Information shall be kept confidential by Marathon for a period of
           fifteen (15) years after the Effective Date and, except as otherwise
           provided in this Agreement, will not be disclosed to others and shall
           be used by Marathon: solely (i) for purposes of the Project, (ii) in
           determining whether Marathon desires to enter into a Site License
           Agreement under the Master Preferred License Agreement relating to
           licensing of Syntroleum Confidential Information and related patents
           for practicing the Syntroleum Process or Product Refining Process (to
           the extent such Product Refining Process has been licensed by
           Marathon from Syntroleum), and for no other purpose, or (iii)
           consistent with the license rights granted to Marathon by Syntroleum
           with respect to Syntroleum Background Technology under Section 8.03;
           and

      (b)  Syntroleum Obligations. Syntroleum agrees that any Marathon
           Confidential Information shall be kept confidential by Syntroleum for
           a period of fifteen (15) years after the Effective Date, and except
           as otherwise provided in this Agreement, will not be disclosed to
           others and shall be used by Syntroleum solely for purposes of the
           Project, and for no other purpose. If such Marathon Confidential
           Information is practiced in the Syntroleum Process or Product
           Refining Process as licensed by Syntroleum, then Syntroleum may
           disclose such Marathon Confidential Information to third parties who
           have executed a secrecy agreement or a licensing agreement with
           Syntroleum having confidentiality terms applicable to the Marathon
           Confidential Information which are no less restrictive than those
           assumed by

                                       25

<PAGE>

           Marathon under this Agreement and having the liability limitations
           and disclaimer as provided under Section 8.05 of this Agreement.

9.02.  Project Technology. All Project Technology generated or otherwise
       obtained by a Party under this Agreement shall be maintained in
       confidence by the Parties as follows:

      (a)  Marathon Obligations. Marathon agrees that Project Technology shall
           be kept confidential by Marathon for a period of fifteen (15) years
           after the Effective Date and except as otherwise provided in this
           Agreement, will not be disclosed to others and shall be used by
           Marathon: solely (i) for purposes of the Project, (ii) in determining
           whether Marathon desires to enter into a Site License Agreement under
           the Master Preferred License Agreement relating to licensing of
           Syntroleum Confidential Information and related patents for
           practicing the Syntroleum Process or Product Refining Process (to the
           extent such Product Refining Process has been licensed by Marathon
           from Syntroleum) and for no other purpose; or (iii) for all other
           fields of use outside of the Syntroleum Process or Product Refining
           Process consistent with the rights granted under Section 8.02 (a) and
           (b).

      (b)  Syntroleum Obligations. Syntroleum agrees that any Project Technology
           shall be kept confidential by Syntroleum for a period of fifteen (15)
           years after the Effective Date, and except as otherwise provided in
           this Agreement, will not be disclosed to others, except to third
           parties who have executed a secrecy agreement or a licensing
           agreement with Syntroleum having confidentiality terms applicable to
           the Project Technology which are no less restrictive than those
           assumed by Marathon under this Agreement and having the liability
           limitations and disclaimer as provided under Section 8.05 of this
           Agreement.

      (c)  Marking. Each Party agrees that, after the date on which this
           Agreement is executed by both Parties, it will use reasonable effort
           to mark, in a conspicuous manner, all tangible forms of Project
           Technology as "Confidential."

                                       26

<PAGE>

9.03.  Exceptions. A Party which receives Confidential Information or Project
       Technology (hereinafter a "receiving Party") shall not be subject to the
       restrictions on disclosure and use as set forth in this Article IX where
       the receiving Party can prove by competent evidence that the information
       at issue:

      (a)  was already known to the receiving Party prior to any disclosure
           under this Agreement; or

      (b)  is part of the public knowledge or literature at the time of
           disclosure, or subsequently becomes part of the public knowledge or
           literature without breach of this Agreement by the receiving Party or
           its Affiliate; or

      (c)  is lawfully disclosed to the receiving Party from a third party
           entitled to disclose the same as a matter of right and who is not
           under obligation of confidentiality to the Party which discloses such
           information (hereinafter a "disclosing Party") under this Agreement;
           or

      (d)  is developed by or for the receiving Party independent of any
           disclosure under this Agreement; or

      (e)  is provided to a bank or other lending institution financing or
           proposing to finance a Party's business or a project undertaken by
           such Party; provided, however, that prior to making Confidential
           Information or Project Technology available to a bank or other
           lending institution pursuant to this Section 9.03, the Party shall
           obtain written agreement from the bank or lending institution to
           maintain the confidentiality of the Confidential Information and/or
           Project Technology pursuant to terms at least as demanding as the
           confidentiality obligations imposed by this Agreement on such Party,
           and provide a copy of such written agreement to the other Party.

                                       27

<PAGE>

           Any information subject to the confidentiality provisions of this
           Article IX shall not be deemed to fall within the confidentiality
           exceptions of this Section 9.03 merely because such information may
           be embraced by more general information which does fall within one or
           more of the exceptions, and no combination of features of such
           information shall be deemed to be within the foregoing exceptions
           merely because the individual features are within the foregoing
           exceptions, unless the combination itself and its principle of
           operation fall within the exceptions. In the event any of the
           exceptions in this Section 9.03 apply, the receiving Party shall not
           disclose to any third party that any such information was made
           available to or acquired by the receiving Party from the disclosing
           Party hereunder, and such release from the secrecy obligation of this
           Agreement shall not by itself be considered as a license to make,
           use, sell, or otherwise practice under any of the disclosing Party's
           other proprietary rights.

9.04.  Access to Confidential Information. A Party which receives Confidential
       Information of the other Party under this Agreement shall limit access to
       such information to those of its employees who reasonably require the
       same and who are under a legal obligation of confidentiality which is the
       same as or more restrictive than the obligations assumed by the Party as
       set forth in this Article IX. The receiving Party shall keep a record of
       any Confidential Information of the other Party which is marked "Limited
       Access" (which designation shall only be placed on Confidential
       Information pertaining to Syntroleum or Project Fischer-Tropsch
       Catalysts, Syntroleum Fischer-Tropsch Catalyst Information, and Project
       Fischer-Tropsch Catalyst Information) and the identity of each employee
       who has access to the Confidential Information so marked. Upon request,
       the receiving Party of such "Limited Access" Confidential Information
       shall inform the disclosing Party of the identity of each such employee
       receiving access to such "Limited Access" Confidential Information within
       thirty (30) days of such request.

9.05.  Third Party Disclosure. Notwithstanding the restrictions on disclosure
       and use contained in Sections 9.01 and 9.02, a Party may disclose the
       other Party's Confidential Information and Project Technology to its
       Affiliates, third party contractors, consultants,

                                       28

<PAGE>

       suppliers, vendors and other agents as necessary to conduct the Project
       and/or to permit the use of such Confidential Information and Project
       Technology as provided in this Agreement; provided, however, that such
       third parties shall have first executed a written obligation of
       confidentiality and restricted use which is at least as restrictive as
       the obligations imposed on such Party by this Agreement.

9.06.  Standard of Care. A Party shall satisfy its confidentiality obligations
       under this Article IX by using the same degree of care as that Party uses
       to protect its own confidential and proprietary information of like
       nature.

9.07.  Required Disclosure. If disclosure of Confidential Information or Project
       Technology is required by a governmental authority or court of competent
       jurisdiction pursuant to statutory, regulatory, or judicial requirements,
       disclosure of such information may be made, provided the Party which owns
       the information at issue is promptly notified in writing prior to the
       disclosure and given a reasonable opportunity to protect the proprietary
       nature of the information through available procedures or a suitable
       protective order. Any information so disclosed shall not be construed as
       being in the public domain, provided that a protective order or other
       protection is obtained for maintaining confidentiality.

9.08.  Fischer Tropsch Catalysts. Notwithstanding any other provision of this
       Agreement, including without limitation, the provisions of Sections 8.02
       and 8.03, except as expressly set forth in this Section 9.08, nothing in
       this Agreement grants to Marathon and Marathon shall have no right to
       make, have made, sell or use any Syntroleum Fischer-Tropsch Catalyst,
       Project Fischer-Tropsch Catalyst, or any Syntroleum Fischer-Tropsch
       Catalyst Information or Project Fischer-Tropsch Catalyst Information,
       except that Marathon shall continue to have the right to purchase and use
       Syntroleum Fischer-Tropsch Catalysts and Project Fischer-Tropsch
       Catalysts under the Master Preferred License Agreement. Marathon will
       not, nor will it allow any other person, to analyze, break down, reverse
       engineer, or otherwise seek to determine or copy the chemical

                                       29

<PAGE>

       composition of any Syntroleum or Project Fischer-Tropsch Catalysts,
       except as provided in Section 9.09.

9.09.  Permitted Analysis. Marathon agrees that any analysis of Syntroleum or
       Project Fischer-Tropsch Catalysts performed by Marathon under the Project
       will be with Syntroleum's prior written consent and all results will be
       provided to Syntroleum and will remain Syntroleum Confidential
       Information.

9.10.  Third Party Restrictions. Nothing in this Agreement shall obligate either
       Party to disclose any information which it is not free to disclose due to
       obligations to a third party.

                                    ARTICLE X

                                      TITLE

10.01. SFP Plant Equipment. Syntroleum shall own all right, title and interest
       in and to all of the equipment, materials, and supplies purchased for the
       Project and used at the SFP.

10.02. SFP Plant Product. Syntroleum shall own all right, title and interest in
       and to the hydrocarbon products produced by the SFP. Syntroleum will
       provide Marathon up to 500 bbls of product from the SFP at a schedule to
       be agreed upon by the Executive Committee, provided that (a) the SFP is
       operating at steady state conditions at the time of the request and
       continues to operate at such conditions during efforts to collect such
       volume of products and (b) Marathon pays the costs of any modifications
       necessary to be made to the SFP to obtain such products and costs of
       transportation from the SFP. Any such purchase shall be the subject of a
       separate written agreement between the Parties.

                                       30

<PAGE>

                                   ARTICLE XI

                            DISCLAIMER AND LIABILITY

11.01. NO WARRANTY AS TO PROJECT TECHNOLOGY OR BACKGROUND TECHNOLOGY. IT IS
       UNDERSTOOD AND AGREED BY THE PARTIES THAT THERE SHALL BE NO
       REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR
       UTILITY OF THE PROJECT TECHNOLOGY DEVELOPED HEREUNDER OR BACKGROUND
       TECHNOLOGY DISCLOSED AND USED HEREUNDER, OR AS TO FREEDOM FROM
       INFRINGEMENT OF ANY PATENTS AND/OR COPYRIGHTS, OR FROM MISAPPROPRIATION
       OF TRADE SECRETS BY THE USE OF THE SAME. THE PROJECT TECHNOLOGY AND
       BACKGROUND TECHNOLOGY ARE MADE AVAILABLE HEREUNDER TO THE PARTIES ON AN
       "AS IS" BASIS WITHOUT WARRANTY OF ANY KIND. ALL WARRANTIES, EXPRESS OR
       IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF
       MERCHANTABILITY, USAGE OF TRADE, AND FITNESS FOR A PARTICULAR USE ARE
       EXPRESSLY DISCLAIMED AND EXCLUDED UNDER THE TERMS AND CONDITIONS OF THIS
       AGREEMENT. ALL RISK INCIDENT TO, AND ALL LIABILITIES ARISING FROM, A
       PARTY'S USE OF THE PROJECT TECHNOLOGY, BACKGROUND TECHNOLOGY OR OTHER
       ITEMS DELIVERED UNDER THIS AGREEMENT SHALL BE BORNE BY SUCH PARTY.

11.02. NO SPECIAL DAMAGES. NO PARTY HERETO SHALL BE LIABLE TO THE OTHER PARTY
       FOR ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, OR INCIDENTAL
       DAMAGES (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO
       THE SAME), ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT OR USE OF
       ANY PROJECT TECHNOLOGY OR BACKGROUND TECHNOLOGY, WHETHER SUCH CLAIM IS
       BASED ON WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT
       LIABILITY), OR OTHERWISE, EVEN IF AN AUTHORIZED REPRESENTATIVE OF SUCH
       PARTY IS ADVISED OF THE POSSIBILITY OR LIKELIHOOD OF THE SAME.

                                       31

<PAGE>

11.03. Responsibility For Acts/Omissions. To the extent permitted by law, each
       Party agrees to be responsible and assume responsibility for its own
       wrongful or negligent acts or omissions, or those of its officers, agents
       or employees hereunder, including, without limitation, those serving as
       representatives on the Executive Committee or performing research and
       development activities under the Project. Accordingly, to the extent
       permitted by law:

      (a)  each Party agrees to protect, defend, indemnify and hold the other
           Party, its Affiliates, and their respective officers, directors,
           agents and employees harmless from and against all claims, demands,
           and causes of action of every kind or character, to the extent of the
           Party's respective negligence arising in connection herewith in favor
           of any third party, including a Party's own employees (except as
           identified in Section 11.03 (b)) on account of bodily injury
           (including death), loss or damage to third party property resulting
           directly or indirectly from, and occurring in the course of the
           performance of activities under the Project; and

      (b)  each Party agrees to protect, defend, indemnify and hold the other
           Party, its Affiliates, and their respective officers, directors,
           agents and employees harmless from and against all claims, demands,
           and causes of action of every kind or character, without regard to
           the cause or causes thereof or the active or passive negligence of
           either party, arising in connection with the performance of
           activities under the Project on account of loss of or damage to the
           indemnifying Party's real and/or personal property.

11.04. Indemnification For Use of Project Technology and Background Technology.
       With respect to use of the Project Technology and Background Technology
       of the other Party for activities outside of the Project as provided by
       this Agreement and to the extent permitted by law, each Party agrees to
       release, defend, indemnify and hold harmless the other Party, its
       Affiliates, and their respective officers, directors, employees, and
       agents, against any or all claims, loss and/or liability of every kind
       and character (including, but

                                       32

<PAGE>

       not limited to, attorney's fees and litigation costs and expenses) and
       regardless of whether such claims, loss and/or liability is based on
       contract, tort, or otherwise, that arises out the indemnifying Party's
       use and/or license of Project Technology and the other Party's Background
       Technology.

11.05. No Modification of MPLA Provisions. Notwithstanding any other provision
       in this Article XI to the contrary, nothing in this Agreement shall amend
       or is intended by the Parties to amend, modify, change or alter the
       allocation of risks and liabilities expressed by the Parties in the
       Master Preferred License Agreement, and in particular, the allocation of
       risks and liabilities as set forth in "Article 6 - Warranties and
       Indemnities" of the Master Preferred License Agreement as may be
       applicable to a Licensed Plant.

11.06. Indemnification for Site. Notwithstanding any other provision in this
       Article XI to the contrary, Syntroleum shall be solely responsible for
       the decommissioning and abandonment of the SFP and any and all
       environmental remediation attendant thereto. Syntroleum agrees to
       protect, defend, indemnify and hold Marathon, its Affiliates, and their
       respective officers, directors, agents and employees harmless from and
       against all claims, demands, and causes of action of every kind or
       character, without regard to the cause or causes thereof or the active or
       passive negligence of Marathon, arising in connection with the
       decommissioning, abandonment and environmental remediation of the SFP and
       any post-Project liability attributable to the ownership of the SFP.

11.07. Indemnification for Infringement. Syntroleum agrees to protect, defend,
       indemnify and hold Marathon, its Affiliates, and their respective
       officers, directors, agents and employees harmless from and against all
       claims, demands, and causes of action of every kind or character arising
       from Syntroleum's infringement of any patents and/or copyrights and from
       misappropriation of trade secrets by use of the same.

                                       33

<PAGE>

                                   ARTICLE XII

                          COMMUNICATIONS; USE OF NAMES

12.01. Communications. Ongoing communication between the Parties about the
       progress of and developments in the Project is understood by the Parties
       to be critical to the success of the Project. Communication among the
       Parties shall be in accordance with the needs of the Project as
       determined by the Executive Committee. It is the responsibility of each
       Party to mark its respective information with appropriate legends as
       required by this Agreement so as to protect the confidentiality of such
       information in accordance with Article IX.

12.02. Restrictions on Use of Names/Marks. This Agreement does not grant and
       shall not be construed as granting any license, authorization or consent,
       to either Party by the other Party hereto, to use any name, trademark,
       service mark or slogan of the other Party. Except as required for
       notifications under the National Cooperative Research and Production Act,
       no Party shall make any press release or other written statements in
       connection with the Project intended for use in the public media having
       or containing any reference to any other Party without the prior written
       approval of such other Party.

                                  ARTICLE XIII

                          ETHICS; CONFLICTS OF INTEREST

       Each Party acknowledges the need to maintain the highest ethical
standards in the conduct of activities under this Agreement. The business ethics
and conflicts of interest policies of each Party shall govern the actions of the
employees and representatives of that Party under this Agreement.
Notwithstanding the foregoing sentence, the employees and representatives of
each Party shall conduct the Project's business with integrity, in compliance
with applicable laws and in a manner that excludes considerations of personal
advantage, in any form, and avoidance of any situation which may involve a
conflict between the interests of the employee, representative or Party, on one
hand, and of the Project, on the other. Each Party hereby represents that in
pursuing activities under this Agreement, no action inconsistent with this
Article XIII shall be taken by its respective employees or representatives.

                                       34

<PAGE>

                                   ARTICLE XIV

                         NO EMPLOYER/EMPLOYEE CROSSOVER

       It is the intent of both Parties hereto that no employer/employee
relationship shall be created between any Party and any individual by reason of
this Agreement. Each Party also expressly agrees, acknowledges and stipulates
that neither this Agreement nor the performance of a Party's obligations or
duties hereunder shall ever result in anyone employed by that Party being: (i)
an employee, agent, servant or representative of the other Party or; (ii)
entitled to any benefits from the other Party, including without limitation,
pension, profit sharing or accident insurance, or health, medical, life or
disability insurance benefits or coverage, to which employees of the other Party
may be entitled.

                                   ARTICLE XV

                            SUSPENSION OF PERFORMANCE

15.01. Force Majeure. Neither Party hereto shall be liable to the other Party
       for failure of performance under this Agreement if the failure to perform
       is due to war, declared or undeclared; fire; flood; interruption of
       transportation; embargo; accident; explosion; inability to procure or
       short supply of goods, materials, feed streams, equipment, supplies or
       production facilities; prohibition of imports and exports; governmental
       or court orders, regulations, restrictions, priorities, or rationing;
       strike, lockout, or other labor problems interfering with transportation
       of goods, raw materials, feed streams, or supplies; or by any other cause
       beyond the reasonable control of the Party affected. Performance under
       this Agreement shall be resumed promptly as soon as the reason for
       nonperformance is removed; provided, however, if nonperformance by virtue
       of the application of this Article XV remains in effect for a period of
       one hundred eighty (180) days, then notwithstanding any other term in
       this Agreement, this Agreement may be terminated by either Party without
       penalty upon written notice to the other Party prior to the conclusion of
       the Force Majeure event. During the period of nonperformance by one

                                       35

<PAGE>

       Party under the terms of this Article XV, the other Party is excused from
       performance as well.

15.02. Suspension Due to Litigation. In the event either Party hereto is
       charged, in a docketed court action, with infringing a third party patent
       or copyright, and/or of misappropriation of a third party trade secret
       because of the performance by such Party under this Agreement, then the
       Party alleged to infringe or misappropriate such third party patent,
       copyright, or trade secret rights may suspend performance under this
       Agreement without penalty until the charge is resolved; provided,
       however, that if performance is suspended pursuant to this Section 15.02
       and such charge is not resolved within a period of one hundred eighty
       (180) days from the start of the period of non-performance, then
       notwithstanding any other term in this Agreement, this Agreement may be
       terminated by either Party without penalty upon written notice to the
       other Party prior to such resolution. In the event of a charge, the
       Parties will meet and discuss an appropriate course of action to respond
       to such charge, and neither Party shall settle or compromise such charge
       without the other Party's written consent, which consent shall not be
       unreasonably withheld.

                                   ARTICLE XVI

                                  MISCELLANEOUS

16.01. Notices. Unless otherwise provided herein, any notice or other
       communication under this Agreement shall be deemed to have been duly
       delivered on the earlier of (i) the date of receipt; if delivered by
       hand, telex or facsimile, or (ii) three (3) business days after the date
       when the same shall have been posted by certified or registered mail,
       return receipt requested, in any post office in the United States of
       America, postage prepaid and addressed to the Party to whom such notice
       or other communication is to be given or made at such Party's address set
       forth below, or to such other address as such Party shall designate by
       written notice to the other Party after the Effective Date, as follows:

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<PAGE>

      (a)  If to Syntroleum:

                            Syntroleum Corporation
                            1350 South Boulder, Suite 1100
                            Tulsa, Oklahoma 74119-3295
                            Fax No.: (918) 592-7979
                            Phone No.: (918) 592-7900
                            Attn:  Office of President

                            with copy to:

                            Syntroleum Corporation
                            Legal Department
                            1350 South Boulder, Suite 1100
                            Tulsa, Oklahoma 74119-3295
                            Fax No.: (918) 592-7979
                            Phone No.: (918) 592-7900

      (b)  If to Marathon:

                            Marathon Oil Company
                            T. N. Tipton
                            V. P. Technology
                            5555 San Felipe, Room 3327
                            Houston, TX 77056
                            Fax No.: (713) 296- 4259
                            Phone No.: (713) 296-3434

                            with copy to:

                            Marathon Oil Company
                            L L Kocher
                            Manager - Gas Utilization
                            5555 San Felipe, Room 3319
                            Houston, TX 77056
                            Fax No.: (713) 296- 3190
                            Phone No.: (713) 296-3221

                                       37

<PAGE>

16.02. Headings. The headings used herein are for convenience only, are not a
       part of this Agreement, and do not in any way limit or amplify the terms
       and provisions hereof.

16.03. Interpretation. In the event an ambiguity or question of intent or
       interpretation arises, this Agreement shall be construed as if drafted
       jointly by the Parties and no presumption or burden of proof shall arise
       favoring or disfavoring any Party by virtue of the authorship of any of
       the provisions of this Agreement. Any reference to any federal, state,
       local or foreign statute or law shall be deemed also to refer to all
       rules and regulations promulgated thereunder, unless the context requires
       otherwise.

16.04. Applicable Law. This Agreement shall be construed and enforced in
       accordance with the laws of the State of Oklahoma, without regard to the
       conflict of law provisions thereof. The Parties expressly and irrevocably
       consent and submit to the jurisdiction of any state or federal court
       sitting in Tulsa County, Oklahoma and agree that, to the fullest extent
       allowed by law, only such Oklahoma courts, to the exclusion of all
       others, shall have jurisdiction over any action, suit or proceeding
       arising out of or relating to this Agreement. The Parties each
       irrevocably waive, to the fullest extent allowed by law, any objection
       either of them may have to the laying of venue of any such suit, action
       or proceeding brought in any state or federal court sitting in Tulsa
       County, Oklahoma based upon a claim that such court is inconvenient or
       otherwise an objectionable forum. Any process in any action, suit or
       proceeding arising out of or relating to this Agreement may, among other
       methods, be served upon any Party by delivering it or mailing it to their
       respective addresses as set forth herein. Any such delivery or mail
       service shall be deemed to have the same force and effect as personal
       service in the State of Texas or Oklahoma.

16.05. Entire Agreement. This Agreement, together with Exhibits A and B hereto,
       the Master Preferred License Agreement, the Syntroleum Process IP
       Agreement, and the Product Refining IP Agreement contain all the
       covenants, terms, provisions and agreements between the Parties relating
       to the Project to be conducted pursuant to this Agreement.

                                       38

<PAGE>

       In the event of any conflict or inconsistency between this Agreement and
       the Master Preferred License Agreement, the Master Preferred License
       Agreement shall control, and in the event of any conflict or
       inconsistency between this Agreement and the Syntroleum Process IP
       Agreement or Product Refining IP Agreement, the terms of this Agreement
       shall control. In the event of any conflict or inconsistency between this
       Agreement and Exhibits A and B, the terms and conditions of this
       Agreement shall control. No prior agreement or understanding with respect
       to the same shall be valid or have any force or effect, and no covenant,
       term, provision or agreement of this Agreement may be altered, changed,
       modified, waived or added to, except in writing by authorized
       representatives of both Parties as provided herein. No representation,
       inducement, understanding or anything of any nature whatsoever made,
       stated or represented on behalf of either Party hereto, either orally or
       in writing, has induced the other Party to enter into this Agreement,
       except as expressly set forth in this Agreement.

16.06. Severability. If any clause, sentence, or other portion of this Agreement
       shall become illegal, null, or void for any reason, or shall be held by
       any court of competent jurisdiction to be so, the remaining portions
       thereof shall remain in full force and effect.

16.07. Relationship of Parties. Nothing contained in this Agreement shall be
       deemed or construed by the Parties or by any third person to create the
       relationship of principal and agent, or of partnership or of joint
       venture (except as defined in Section 2(b) of the National Cooperative
       Research and Production Act of 1993) among the Parties, nor shall this
       Agreement be construed to authorize either Party to act as agent for or
       to bind or obligate the other Party. The execution and delivery of this
       Agreement shall not be deemed to confer any rights upon, nor obligate
       either of the Parties to any person or entity other than the other Party
       hereto.

16.08. Tax Election. It is the intention of the Parties that the Project not be
       treated as a partnership for federal income tax or any other purpose.
       Nevertheless, in the event that the Internal Revenue Service determines
       that the Project is a partnership for federal

                                       39

<PAGE>

       income tax purposes, each Party hereby elects to be excluded from the
       provisions of Chapter I, Subchapter K of the Internal Revenue Code of
       1986, as amended, such election being intended to meet the requirements
       of Section 1.761-2(b)(2)(ii)(a) of the Treasury Regulations.

16.09. Waiver. The waiver or failure to enforce any provision of this Agreement
       shall not operate as a waiver of any future breach of any such provision
       or any other provision hereof.

16.10. Assignment. Neither this Agreement nor the rights and obligations under
       this Agreement shall be transferable or assignable by either Party hereto
       without the written consent of the other Party, which consent shall not
       be unreasonably withheld; except that such consent shall not be necessary
       in the event of an assignment by a Party to an Affiliate of such Party or
       to the successor of a Party in connection with the sale of all or
       substantially all of that Party's business assets.

16.11. Binding Effect. The provisions of this Agreement shall bind or benefit
       the successors and permitted assigns of the Parties.

16.12. Records and/Audits

      (a)  Maintenance of Records. Each Party hereto shall maintain, in
           accordance with generally accepted accounting principles consistently
           applied, true and complete records of all costs, invoices and
           payments associated with the Project and shall retain all such
           records for a period of not less than twenty-four (24) months after
           the expiration or earlier termination of this Agreement under
           Articles V and VI hereof.

      (b)  Right to Copies of Records. Upon written request of the other Party,
           at any time until twenty-four (24) months after the expiration or
           termination of this Agreement, a Party shall provide such other Party
           with a copy of all documents for which

                                       40

<PAGE>

           payments have been made or expenses incurred under this Agreement
           respecting the Project and chargeable to the Project budget. The
           Party making this request shall reimburse the other Party for its
           actual costs in providing such documents.

      (c)  Audit. Each Party shall have the right to audit, during normal
           business hours and within the period in which the other Party is
           obligated to preserve such records, upon written notice of at least
           ten (10) business days, for the purpose of verifying the other
           Party's charges, receipts, and expenses.

16.13. Accident Reports. Each Party shall report to the other Party, as soon as
       practicable, all accidents or occurrences resulting in personal injury
       (including bodily injury or death) or property damage arising out of or
       during the performance of the Project, and shall furnish the other Party
       with written documents, including copies of all reports made by a Party
       to its insurer or to others, concerning such accidents and occurrences.

16.14. Laws, Rules, Regulations, and Permits. Each Party agrees that its
       activities under this Agreement shall conform to all applicable
       governmental laws, rules, codes, or regulations and all applicable
       industry codes and standards. Each Party agrees to comply, and to cause
       its employees, agents, Contractors and other agents engaged in carrying
       out that Party's activities under the Agreement, to comply with all
       applicable laws, ordinances and requirements of federal, state, district,
       county, city or town departments, bureaus, and authorities as now or
       hereinafter in effect during the term of this Agreement, including, but
       not limited to, the Occupational Safety and Health Act of 1970 and the
       Contract Work Hours and Safety Standards Act, and the rules and
       regulations imposed by a Party for its respective business facilities, to
       the extent a Party's rules and regulations do not conflict with any
       governmental rules and regulations. Each Party shall also comply with all
       applicable laws, executive orders and regulations concerning
       non-discrimination in employment, including but not limited to the equal
       opportunity clause of Section 202 of Executive Order 11246, dated
       September 24, 1965, which is incorporated herein by reference.

                                       41

<PAGE>

16.15. Most Favored Nations Clause. If Syntroleum enters into one or more
       agreements with third parties for participation in the Project, then
       Syntroleum agrees, if requested by Marathon to do so, to amend this
       Agreement to incorporate any terms in such third-party agreement(s) which
       are more favorable to such third party(ies) than this Agreement is to
       Marathon.

IN WITNESS WHEREOF, this Agreement shall be effective as of the Effective Date.

SYNTROLEUM CORPORATION                 MARATHON OIL COMPANY

By:                                    By:
   -------------------------------        --------------------------------------
Name:                                  Name:  T. N. Tipton
     -----------------------------          ------------------------------------
Title:                                 Title: Vice President Technology
      ----------------------------           -----------------------------------
Date:                                  Date:
     -----------------------------          ------------------------------------

                                       42

<PAGE>

                                LIST OF EXHIBITS

Exhibit A    Cooperative Agreement Subcontract

Exhibit B    Two letter agreements dated July 6, 2001 between Syntroleum
             Corporation and Marathon Oil Company, one of which is re: "Cherry
             Point Relocation Cost Agreement" and the other of which is re:
             "Term Sheet dated November 8, 2000 between Syntroleum Corporation
             and Marathon Oil Company."

Exhibit C    Syntroleum Corporation Secured Promissory Note

                                       43

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