Document:

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                               TABLE OF CONTENTS

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                                              ARTICLE I DEFINITIONS AND CONSTRUCTION
                                              -------------------------------------
1.1  Definitions..............................................................................................................     1
1.2  Construction.............................................................................................................     4

                                                        ARTICLE II QUANTITY
                                                        -------------------
2.1  Delivery Amount..........................................................................................................     4
2.2  Disclaimer of Implied Warranties.........................................................................................     9

                                                     ARTICLE III PRICING/TAXES
                                                     -------------------------
3.1  Delivery Amount Price....................................................................................................     9
3.2  Adjustments..............................................................................................................     9
3.3  Taxes....................................................................................................................    12

                                                        ARTICLE IV PAYMENT
                                                        ------------------
4.1  General..................................................................................................................    13
4.2  Interest.................................................................................................................    13
4.3  Accounting Address.......................................................................................................    14

                                              ARTICLE V TITLE WARRANTIES AND TRANSFER
                                              ---------------------------------------
5.1  General..................................................................................................................    14
5.2  Specific Fields..........................................................................................................    14

                                                      ARTICLE VI MEASUREMENT
                                                      ----------------------
6.1  Measurement..............................................................................................................    15
6.2  Meters and Tests.........................................................................................................    15

                                                 ARTICLE VII TERM AND TERMINATION
                                                 --------------------------------
7.1  Term.....................................................................................................................    15
7.2  Suspension Rights........................................................................................................    15
7.3  Termination Rights.......................................................................................................    16

                                   ARTICLE VIII REPRESENTATIONS, WARRANTIES AND OTHER COVENANTS
                                   ------------------------------------------------------------
8.1  Nuevo Representations and Warranties.....................................................................................    17
8.2  Tosco Representations and Warranties.....................................................................................    17
8.3  Covenants................................................................................................................    18

                                                   ARTICLE IX FINANCIAL MATTERS
                                                   ----------------------------
9.1  Credit Requirements......................................................................................................    19
9.2  Financial Responsibility.................................................................................................    19

                                                        ARTICLE X DISPUTES
                                                        ------------------
10.1 Pricing Disputes.........................................................................................................    20
10.2 Other Disputes...........................................................................................................    21
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                                                     ARTICLE XI MISCELLANEOUS
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11.1  Notices.................................................................................................................   22
11.2  Confidentiality.........................................................................................................   22
11.3  Assignment..............................................................................................................   23
11.4  Force Majeure...........................................................................................................   23
11.5  Waiver..................................................................................................................   23
11.6  Entire Agreement........................................................................................................   23
11.7  Control.................................................................................................................   24
11.8  Severability............................................................................................................   24
11.9  Audit...................................................................................................................   24
11.10 Safety..................................................................................................................   25
11.11 Business Practices......................................................................................................   25
11.12 Governing Law...........................................................................................................   26
11.13 Entirety of Agreement and Amendments....................................................................................   26
11.14 Headings................................................................................................................   26
11.15 General Provisions......................................................................................................   26
11.16 Further Assurances......................................................................................................   26
11.17 Time and Performance of the Essence.....................................................................................   26
11.18 No Third Party Beneficiaries............................................................................................   26
11.19 Hazards and Risks.......................................................................................................   26
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                                                                    EXHIBIT 10.1

                         CRUDE OIL PURCHASE AGREEMENT

     This Crude Oil Purchase Agreement (this "Agreement") dated as of January 1,
2000, is entered into between Nuevo Energy Company ("Nuevo") and Tosco Corp.
d/b/a Tosco Refining Co. ("Tosco").  Nuevo and Tosco are sometimes collectively
referred to herein as the "Parties" or individually as a "Party."

                                   ARTICLE I
                         DEFINITIONS AND CONSTRUCTION

     1.1  Definitions.  When used in the Agreement, the terms listed below and
any grammatical variation thereof have the following meanings:

          "API" means the American Petroleum Institute.

          "Arbitrator" shall have the meaning set forth in Section 10.1(a).

          "ASME" means the American Society of Mechanical Engineers.

          "ASTM" means the American Society of Testing Materials.

          "Average Delivery Amount" shall have the meaning set forth in Section
2.1(c).

          "Barrel" means 42 U.S. gallons of 231 cubic inches per gallon
     corrected to 60 degrees Fahrenheit.

          "BS&W" means basic sediment and water.

          "Business Day" shall mean any calendar day other than a Saturday,
     Sunday or other calendar day on which banks are authorized to be closed in
     Texas.

          "Committed Volumes" shall have the meaning given that term in Section
     11.6(a).

          "Daily Crude Index Price Average" means, for each Day during a
     Delivery Month, which Day has been designated as an effective date for
     prices published in Platt's, the amount, in dollars per barrel, equal to
     the midpoint of the price spread listed under the heading of "ANS(Cal)," in
     the table entitled "U.S." in the section entitled "Crude Price Assessments"
     in the issue of Platt's designating such Day as an effective date.

          "Daily Product Index Price Average" means, for each Day during a
     Delivery Month, which Day has been designated as an effective date for
     prices published in Platt's, the amount, in dollars per Barrel, equal to
     the average of the following:

               (i) the midpoint of the price spread (in cents per gallon) listed
          under the heading of "Unl 87,"
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               (ii)  the midpoint of the price spread (in cents per gallon)
          listed under the heading of "CARB Unl," and

               (iii) the midpoint of the price spread (in cents per gallon)
          listed under the heading of "CARB Diesel,"

     in each case as listed in the column entitled "San Francisco(b)" in the
     table entitled "West Coast Pipeline" in the section entitled "Product Price
     Assessments" in the issue of Platt's designating such Day as an effective
     date (or such replacement component as the Parties may mutually agree if
     any such component is no longer published in Platt's).

          "Day" means any complete 24 hour period during the term of this
     Agreement, commencing at 7:00 a.m. Pacific Time on a given calendar day and
     ending at 6:59 a.m Pacific Time on the succeeding calendar day.  The
     reference date for a given Day shall be the calendar day on which such Day
     begins.

          "Delivery Amount" shall have the meaning set forth in Section 2.1(a).

          "Delivery Amount Price" shall have the meaning set forth in Section
3.1(a).

          "Delivery Month" means each complete monthly period during the term of
     this Agreement, commencing at 7:00 a.m. Pacific Time on the first calendar
     day of a given calendar month and ending at 6:59 a.m. Pacific Time on the
     first calendar day of the following calendar month.  The reference date for
     a given Delivery Month shall be the calendar month in which such Delivery
     Month begins.

          "Estimated Amount" shall have the meaning set forth in Section 2.1(b).

          "Event of Default" shall mean any of the following:

               (i)   failure to make any payment within five (5) Business Days
          of when due under this Agreement;

               (ii)  failure by Nuevo to deliver the Delivery Amount for ten
          (10) consecutive calendar days beyond the time that such performance
          is due where such failure is not due to Force Majeure;

               (iii) failure by Tosco to provide financial assurance pursuant
          to Section 9.1 of this Agreement;

               (iv)  a material breach by a Party of any other covenant or
          provision of this Agreement by such Party;

               (v)   initiation of proceedings (voluntarily or involuntarily) by
          or with respect to a Party under the bankruptcy or insolvency laws of
          any jurisdiction, which proceedings are not dismissed within sixty
          (60) calendar days after filing; written admission of inability to pay
          debts generally as they come due; the making of an assignment for the

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          benefit of creditors; an application of reappointment of a receiver,
          custodian or trustee; or the passing of a resolution for winding up or
          liquidation by or on behalf of a Party; or

               (vi)  any representation or warranty made in this Agreement by a
          Party being false or misleading in any material respect at the time it
          was made or deemed to have been made.

          "Force Majeure" means any war, riots, insurrections, fire, explosions,
     sabotage, strikes, and other labor or industrial disturbances, acts of God
     or the elements, governmental laws or regulations, disruption or breakdown
     of production or transportation facilities, delays by unaffiliated pipeline
     carriers in receiving and delivering Sales Volumes tendered, or any other
     event reasonably beyond the control of a Party claiming such Force Majeure,
     but does not include mere economic loss or hardship to such Party or the
     shut down of facilities that are no longer considered economic to operate.

          "Major Poster" means any of Chevron Products Company, Exxon Mobil
     Corporation, Tosco Refining Company (as published under its Union 76
     posting), and Equiva Trading Company, or in each case such successor
     thereto or affiliate thereof or such joint venture with such company or its
     affiliate that provides crude oil postings.

          "Monthly Crack Slider Adjustment" means, for each Delivery Month, the
     Delivery Amount Price adjustment corresponding to the range in which the
     Refinery Crack Spread Margin for such Delivery Month falls on the table set
     forth in Exhibit 5.

          "Monthly Crude Index Price Average" means, for each Delivery Month,
     the average of all Daily Crude Index Price Averages during such Delivery
     Month.

          "Monthly Product Index Price Average" means, for each Delivery Month,
     the average of all Daily Product Index Price Averages during such Delivery
     Month.

          "New Field Pre-Agreement Period" shall have the meaning set forth in
Section 2.1(d).

          "New Fields" shall have the meaning set forth in Section 2.1(d).

          "New Volume Pre-Agreement Period" shall have the meaning set forth in
Section 2.1(e).

          "New Volumes" shall have the meaning set forth in Section 2.1(e).

          "NYMEX Price" means, for a given Delivery Month, the average of the
     daily settlement prices for the current month contract on the New York
     Mercantile Exchange for light sweet crude oil during the calendar month for
     which such Delivery Month is referenced.  For example, the NYMEX Price for
     Delivery Amounts delivered in January shall be the average of the daily
     settlement contracts on the New York Mercantile Exchange for February
     futures contracts (until such time as settlement prices cease to be
     published for February, and thereafter for March futures contracts) for
     light sweet crude oil as published from January 1 through January 31.

          "Platt's" means Platt's Oilgram Price Report, as currently published
     by McGraw-Hill Companies, or such replacement publication as the Parties
     may agree to in writing if such

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     publication ceases to be published or such publication ceases to provide
     the information to be obtained therefrom pursuant to this Agreement.

          "Posting Group" shall mean any one of the five groups of Subject
     Fields having the same designated "Posting Group" in Exhibit 4, which
     Posting Group shall have the name so designated in Exhibit 4.

          "Refinery Crack Spread Margin" means, for each Delivery Month, the
     difference obtained by subtracting the Monthly Crude Index Price Average
     for such Delivery Month from the Monthly Product Index Price Average for
     such Delivery Month.

          "Rules shall have the meaning set forth in Section 10.1(a).

          "Sales Volumes" shall mean hydrocarbons in a liquid state under
     ordinary production and transportation operating conditions (e.g. not
     including natural gas or liquefied petroleum gas) produced and saved and
     not combined with other hydrocarbons except when such combining occurs in
     connection with ordinary or customary production, gathering or
     transportation operations.

          "Set Aside Volume" shall have the meaning set forth in Section 2.1(c).

          "Subject Fields" means, collectively (i) the fields and/or leases
     described in Exhibit 1 to this Agreement, and (ii) the fields and leases
     added to this Agreement pursuant to Section 2.1(d).

          "Year" means a period of 12 consecutive calendar months according to
     the Gregorian calendar, beginning on the first calendar day of the first
     such calendar month and ending on the last calendar day of the twelfth such
     calendar month.

     1.2  Construction. This agreement has been prepared jointly by the Parties
with the advice and participation of counsel, and shall not be interpreted
against one Party in favor of the other.

                                  ARTICLE II
                                   QUANTITY

     2.1  Delivery Amount. (a) Subject to the terms and conditions hereof and
subject to Nuevo's rights under Section 2.1(c), Nuevo agrees to sell and deliver
to Tosco, and Tosco agrees to receive and purchase from Nuevo, one hundred
percent (100%) of Nuevo's owned and controlled interest in Sales Volumes
produced from the Subject Fields, other than the Committed Volumes, which
production is currently estimated to be 48,000 Barrels per calendar day (the
"Delivery Amount").

          (b) Not later than ten (10) calendar days prior to the commencement of
     each Delivery Month, Nuevo will notify Tosco of its then current good
     faith, but non-binding, estimate of the Delivery Amount for such Delivery
     Month and the Delivery Month immediately thereafter, which notice shall
     generally be in the form of Exhibit 2 attached hereto (the "Estimated
     Amount").

          (c) Set Aside Volume.  Notwithstanding Section 2.1(a), Nuevo shall be
     entitled, in accordance with the procedures set forth below, to retain a
     portion of the Delivery Amount and exclude same from this Agreement (the
     "Set Aside Volume") for the period of time such Set Aside Volume is in
     effect as permitted by this Agreement.  Upon agreement of the Parties
     pursuant to

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     Section 2.1(c)(ii), or upon delivery of the Set Aside Volume Election
     pursuant to Section 2.1(c)(iii), such Set Aside Volume shall be excluded
     from this Agreement and Tosco shall have no further rights under this
     Agreement with respect thereto, but such exclusion shall be only for the
     period of time such Set Aside Volume is in effect as permitted by this
     Agreement. The procedures for, and restrictions on, retaining a Set Aside
     Volume and excluding same from this Agreement are as follows:

               (i)   Nuevo shall have the right to notify Tosco in writing no
          later than June 1 of any given calendar Year if it desires to have any
          Set Aside Volume (a "Preliminary Set Aside Notice").  Each such
          Preliminary Set Aside Notice shall set forth (A) the percentage (no
          greater than 10%) of the Delivery Amount that Nuevo desires to retain
          (the "Election Percentage"), (B) a calculation estimating the amount,
          in Barrels per Day, that such percentage is anticipated to represent
          (calculated in accordance with Section 2.1(c)(iv) and (v)), (C) the
          Subject Fields from which such Set Aside Volume will be produced, and
          (D) the Delivery Months that will be subject to such Set Aside Volume.

               (ii)  Upon Tosco's receipt of a Preliminary Set Aside Notice, the
          Parties shall endeavor in good faith to negotiate the terms and
          conditions upon which Tosco would purchase such Set Aside Volume.

               (iii) With respect to any given calendar Year in which Nuevo
          provides Tosco with a Preliminary Set Aside Notice, if the Parties
          fail to agree upon the terms and conditions upon which Tosco will
          purchase such Set Aside Volume pursuant to Section 2.1(c)(ii) on or
          before June 30 of such Year, then Nuevo shall have the right, on or
          before October 1 of such Year, to notify Tosco in writing of its
          intent to sell such Set Aside Volume to a third party (a "Set Aside
          Volume Election").  The Set Aside Volume Election may only be made as
          to the same Election Percentage, Subject Fields, and Delivery Months
          as set forth in the Preliminary Set Aside Notice, but shall contain
          any updated estimated amount, in Barrels per Day, that such Election
          Percentage is anticipated to represent (calculated in accordance with
          Section 2.1(c)(iv) and (v)).

               (iv)  In estimating the Set Aside Volume, in Barrels per Day, for
          purposes of the Preliminary Set Aside Notice and the Set Aside Volume
          Election, Nuevo shall multiply the Election Percentage in connection
          therewith times the average Daily Delivery Amount for the immediately
          preceding three (3) Delivery Months for which such information is
          available, rounding such product to the nearest 1,000 Barrels per Day.
          The actual Set Aside Volume, in Barrels per Day, for a given delivery
          Year shall equal the Election Percentage elected for such delivery
          Year multiplied by the Average Delivery Amount for the Year
          immediately preceding such delivery Year rounded to the nearest 1,000
          Barrels per Day.  For purposes of this Section, the term "Average
          Delivery Amount" shall, for a given Year, mean an amount calculated as
          follows:

                     (A) The Parties shall calculate an average of the Daily
               Delivery Amounts for each of the Delivery Months of June through
               November of such Year.

                     (B) The Parties shall determine the four Delivery Months of
               such six Delivery Months that have the highest average Daily
               Delivery Amount calculated pursuant to clause (A).

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                    (C) The Parties shall calculate the average Daily Delivery
               Amount of all Days during the four Delivery Months determined
               pursuant to clause (B).

                    (D) The average Daily Delivery Amount calculated pursuant to
               clause (C) shall be the "Average Delivery Amount" for such Year.

          In addition, in making a calculation for a Set Aside Volume, no
          deduction from the gross amount of average Daily Delivery Amount shall
          be made for any previous Set Aside Volume.

               (v)  In calculating the average Daily Delivery Amount for a given
          Delivery Month for purposes of Section 2.1(c)(iv), the Parties (A)
          shall not include Delivery Amounts attributable to Subject Fields or
          interests in Sales Volumes, which Subject Fields or interests in Sales
          Volumes were sold by Nuevo at any time during the period commencing as
          of the first Day from which such average is being calculated and
          ending on the last Day prior to the commencement of the relevant
          delivery Year, and (B) shall include an amount, in Barrels per Day,
          normalized throughout the period over which such average is being
          calculated, equal to the average Daily Delivery Amounts attributable
          to Subject Fields or interests in Sales Volumes, which Subject Fields
          or interests in Sales Volumes were acquired by Nuevo at any time
          during the period commencing as of the first Day from which such
          average is being calculated and ending on the last Day prior to the
          commencement of the relevant delivery Year.

               (vi) Notwithstanding the foregoing, the Set Aside Volume may not
          include amounts of Sales Volumes from Subject Fields belonging to the
          Posting Group referred to as Kern River in Exhibit 4 in excess of 25%
          of the average Daily Delivery Amount (calculated in accordance with
          Section 2.1(c)(v) and with respect to the periods required pursuant to
          Section 2.1(c)(iv)) attributable to all Subject Fields belonging to
          such Posting Group.

          (d)  Additional Subject Fields. To the extent not otherwise restricted
     or prohibited by agreements existing or effective at the time of such
     acquisition or development, and in all cases subject to such agreements,
     all fields and leases in the State of California, or located in California
     state waters or Federal waters offshore of the State of California, that
     Nuevo acquires or develops during the term of this Agreement shall
     constitute Subject Fields effective as of the date of such acquisition or
     development.  The pricing and delivery location for Delivery Amounts
     produced from such additional fields and leases shall be as mutually agreed
     by the Parties or as otherwise determined pursuant hereto.  For purposes of
     the foregoing sentence, with respect to fields and leases located within
     the geographic boundaries of existing Subject Fields or that are otherwise
     considered by the applicable regulatory authority to be a part of a field
     included within a current Subject Field, and provided that the Sales
     Volumes produced from such fields and leases is of Substantially the Same
     Quality as that produced from such Subject Field, then the Parties shall be
     deemed to have agreed that the pricing and delivery location for Delivery
     Amounts produced from such fields and leases shall be the same as that for
     such Subject Field.  For purposes of this Agreement, Sales Volumes shall
     have "Substantially the Same Quality" as other Sales Volumes if its sulphur
     content does not vary from the other by more than 1% by weight and if its
     gravity does not vary from the other by more than 5 degrees API.  If the
     Parties fail to agree, and are not otherwise deemed to have agreed, on the
     pricing and/or delivery location for Delivery Amounts produced from such
     fields and leases on or before the 30th calendar day

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     following the acquisition or development of such fields or leases by Nuevo,
     then the Parties shall refer the determination of such pricing and delivery
     location to arbitration pursuant to Section 10.1, and upon such
     determination, such pricing and/or delivery location shall thenceforth
     apply to such fields and leases. During the period, if any, commencing with
     the date such fields and leases constitute Subject Fields (the "New
     Fields") and ending upon the last Day of the last Delivery Month ending
     prior to the agreement of the Parties (or the decision of the Arbitrator,
     as applicable) as to pricing and/or delivery location, as applicable (the
     "New Field Pre-Agreement Period"), the Parties shall use, for purposes of
     temporary payment for and delivery of Delivery Amounts from such New
     Fields, the pricing and/or delivery location, as applicable, set forth
     below:

               (i)  If the delivery location has not been so agreed or
          determined by arbitration, the delivery location during the New Field
          Pre-Agreement Period shall be the location at which Delivery Amounts
          produced from such New Field pass from equipment or locations owned or
          controlled by Nuevo, or owned or controlled by a party designated to
          make delivery on behalf of Nuevo.

               (ii) If the pricing has not been so agreed or determined by
          arbitration, the pricing during the New Field Pre-Agreement Period
          shall be determined as if such New Field belonged to the Posting Group
          whose "Specified Gravity" under Exhibit 3 is closest to the average
          gravity of the Delivery Amounts then being produced from such Subject
          Field (and if two such Posting Groups have Specified Gravities that
          are equally close to such average gravity, then the Posting Group with
          the higher Specified Gravity shall apply for purposes of this clause).

     From and after the termination of such New Field Pre-Agreement Period, the
     pricing and delivery location agreed by the Parties (or selected by the
     Arbitrator, as applicable), shall thenceforth apply subject to the terms of
     this Agreement.  If the pricing provisions applied during the New Field
     Pre-Agreement Period differ from those following the New Field Pre-
     Agreement Period as a result of the mutual agreement of the Parties or the
     decision of the Arbitrator, in each case pursuant to this Section, then the
     Parties shall account for such difference in pricing in the next invoice
     from Tosco pursuant to this Agreement, which accounting shall be in the
     form of a credit or debit and which will include interest from the date
     such New Field Pre-Agreement Period prices were paid until the date of such
     invoice, calculated at the interest rate provided in Section 4.2.  If any
     fields or leases acquired or developed by Nuevo would constitute a Subject
     Field pursuant to this Section 2.1(d) but for the existence of restrictions
     or prohibitions contained in agreements existing or effective at the time
     of such acquisition, then upon the termination of such restrictions,
     prohibitions or agreements, such fields and leases shall then be subject to
     this Section as if the date of such termination was the date of
     acquisition.

          (e)  Additional Interests in Sales Volumes.  To the extent not
     otherwise committed, restricted or prohibited by agreements existing or
     effective at the time of such acquisition, and in all cases subject to such
     agreements, all interests in Sales Volumes production in the State of
     California, or in California state waters or Federal waters offshore of the
     State of California, that Nuevo acquires during the term of this Agreement
     shall be included in the Delivery Amount effective as of the date of such
     acquisition.  The pricing and delivery location for such Delivery Amounts
     shall be mutually agreed by the Parties or as otherwise determined pursuant
     hereto.  For purposes of the foregoing sentence, with respect to additional
     interests in Sales Volumes

                                      -7-
<PAGE>

     produced from a Subject Field, which Sales Volumes are of Substantially the
     Same Quality as that produced from such Subject Field, the Parties shall be
     deemed to have agreed that the pricing and delivery location for such
     Delivery Amounts shall be the same as that for such Subject Field. If the
     Parties fail to agree, and are not otherwise deemed to have agreed, on the
     pricing and delivery location for such additional Delivery Amounts on or
     before the 30th calendar day following the acquisition of such interest in
     Sales Volumes by Nuevo, then the Parties shall refer the determination of
     such pricing and delivery location to arbitration pursuant to Section 10.1,
     and upon such determination, such pricing and/or delivery location shall
     thenceforth apply to such Delivery Amounts. During the period, if any,
     commencing with the date such interest in Sales Volumes are included in the
     Delivery Amount (the "New Volumes") and ending upon the last Day of the
     last Delivery Month ending prior to the agreement of the Parties (or the
     decision of the Arbitrator, as applicable) as to pricing and/or delivery
     location, as applicable (the "New Volume Pre-Agreement Period"), the
     Parties shall use, for purposes of temporary payment for and delivery of
     such Delivery Amounts, the pricing and/or delivery location, as applicable,
     set forth below:

               (i)  If the delivery location has not been so agreed or
          determined by arbitration, the delivery location during the New Volume
          Pre-Agreement Period shall be the location at which such Delivery
          Amounts pass from equipment or locations owned or controlled by Nuevo,
          or owned or controlled by a party designated to make delivery on
          behalf of Nuevo.

               (ii) If the pricing has not been so agreed or determined by
          arbitration, the pricing during the New Volume Pre-Agreement Period
          shall be determined as if such Delivery Amounts were produced from a
          Subject Field belonging to the Posting Group whose "Specified Gravity"
          under Exhibit 3 is closest to the average gravity of such  Delivery
          Amounts (and if two such Posting Groups have Specified Gravities that
          are equally close to such average gravity, then the Posting Group with
          the higher Specified Gravity shall apply for purposes of this clause).

     From and after the termination of such New Volume Pre-Agreement Period, the
     pricing and delivery location agreed by the Parties (or selected by the
     Arbitrator, as applicable), shall thenceforth apply subject to the terms of
     this Agreement.  If the pricing provisions applied during the New Volume
     Pre-Agreement Period differ from those following the New Volume Pre-
     Agreement Period as a result of the mutual agreement of the Parties or the
     decision of the Arbitrator, in each case pursuant to this Section, then the
     Parties shall account for such difference in pricing in the next invoice
     from Tosco pursuant to this Agreement, which accounting shall be in the
     form of a credit or debit and which will include interest from the date
     such New Volume Pre-Agreement Period prices were paid until the date of
     such invoice, calculated at the interest rate provided in Section 4.2.  If
     any interest in Sales Volumes acquired by Nuevo would be included in the
     Delivery Amount pursuant to this Section 2.2(e) but for the existence of
     commitments, restrictions or prohibitions contained in agreements existing
     or effective at the time of such acquisition, then upon the termination of
     such commitments, restrictions, prohibitions or agreements, such interests
     in Sales Volumes shall then be subject to this Section as if the date of
     such termination was the date of acquisition.

          (f)  Quality.  The Delivery Amount delivered hereunder shall be
     merchantable, meeting the requirements of the approved tariff of the first
     common carrier pipeline involved.

                                      -8-
<PAGE>

     2.2  Disclaimer of Implied Warranties. Nuevo and Tosco each acknowledges
that it has entered into this Agreement based solely on the express
representations, warranties, covenants and agreements set forth herein and,
subject to the express representations, warranties, covenants and agreements set
forth herein, Tosco accepts Sales Volumes delivered hereunder "as is." Except as
otherwise expressly provided in this Agreement, Tosco expressly negates, as to
the Delivery Amounts, any other representation, warranty, covenant or agreement,
written or oral, express or implied, including without limitation, any
representation or warranty with respect to (a) conformity to models or samples,
(b) merchantability, or (c) fitness for a particular purpose.

                                  ARTICLE III
                                 PRICING/TAXES

     3.1  Delivery Amount Price. (a) Basic Calculation. The price to be paid by
Tosco for each Barrel of the Delivery Amount produced from a given Subject Field
during a given Delivery Month (each, a "Delivery Amount Price") shall, subject
to Section 3.2(a) and (b), equal (A) the NYMEX Price for such Delivery Month,
multiplied by (B) the percentage set forth opposite the Posting Group for such
Subject Field set forth in Exhibit 3.

          (b) Uniform Deliveries. In computing the Delivery Amount Price for the
     Delivery Amount hereunder for a given Delivery Month, it shall be assumed
     that such Delivery Amount was delivered in equal daily quantities during
     such Delivery Month.

          (c) Truck Receipts. Subject to Section 3.2(a)(iv), the Delivery Amount
     Price for Delivery Amount shall be unaffected by whether such Delivery
     Amount is received by truck or by pipeline carrier. Tosco shall arrange for
     the scheduling of trucks for receipt of Delivery Amounts that are not
     delivered to a pipeline carrier.

     3.2  Adjustments. (a) Delivery Amount Price. The following adjustments
shall apply to the Delivery Amount Prices:

              (i)  Subject Field Pricing Differential. The Delivery Amount Price
          for a given Subject Field shall be adjusted by the "Subject Field
          Pricing Differential" set forth in Exhibit 4 for such Subject Field.

              (ii) Beta Field - Sulphur Content. The Delivery Amount Price for
          the Subject Field designated as the "Beta (Edith)" in Exhibit 1 shall
          be decreased by an amount equal to US$0.50 per Barrel for each full
          percentage point of sulphur content in excess of 1.5% (and decreased
          pro rata for partial percentage point increases). The Delivery Amount
          Price for such Subject Field shall be increased by an amount equal to
          US$0.50 per Barrel for each full percentage point of sulphur content
          below 1.5% (and increased pro rata for partial percentage point
          decreases). By way of example, the Delivery Amount Price for a
          Delivery Amount from the Beta (Edith) field having a sulphur content
          of (A) 3% shall be decreased by US$0.75 per Barrel, or (B) 1% shall be
          increased by US$0.25 per Barrel.

                                      -9-
<PAGE>

               (iii) Monthly Crack Slider Adjustment. The Delivery Amount Price
          for all Subject Fields during a given Delivery Month shall be adjusted
          by the Monthly Crack Slider Adjustment for such Delivery Month. An
          illustration of calculations for this adjustment using hypothetical
          data is set forth in Exhibit 5.

               (iv)  Trucking Costs. For Delivery Amounts received by truck,
          Tosco may deduct the actual cost of trucking from the Delivery Amount
          Price payable pursuant to this Agreement with respect thereto;
          provided, however, that if any such Delivery Amount could have been
          delivered to a pipeline carrier and is delivered by truck at Tosco's
          election, such cost of trucking shall not be deducted.

               (v)   Gravity Adjustment. The Delivery Amount Price for a given
          Subject Field and Delivery Month shall be adjusted, upward or downward
          as applicable, by the product obtained by multiplying:

                     (A) the average of the gravity price adjustments (in
               $/barrel/degree API) published by each of the four Major Posters
               for such Delivery Month for crude oil of the gravity produced
               from such Subject Field, by

                     (B) the difference obtained by subtracting:

                           (x) the Specified API Gravity set forth in Exhibit 3
                     for the Posting Group to which such Subject Field belongs,
                     from

                           (Y) the average gravity (in degrees API) for Sales
                     Volumes delivered from such Subject Field for each Day
                     during such Delivery Month.

          For purposes of Section 3.2(a)(v)(A), if greater than one but fewer
          than four Major Posters have published gravity price adjustments for
          such Delivery Month for crude oil produced in California, then the
          Parties shall use the average of such Major Posters.  If only one or
          less Major Posters have so published gravity price adjustments, then
          the Parties shall mutually agree upon the appropriate gravity
          adjustment for purposes of Section 3.2(a)(v)(A) and failing such
          agreement, the gravity adjustment shall be determined pursuant to
          Section 3.2(b)(iii).

               (vi)  Point Pedernales. The Delivery Amount Price for Sales
          Volumes produced from the Subject Field designated as Point Pedernales
          in Exhibit 1 shall be adjusted for sulphur content and for location
          differential in accordance with Exhibit 6.

               (vii) Point Arguello Posting Group Adjustments.  Nuevo shall
          have the right to propose a change in the pricing under this Agreement
          with respect to Sales Volumes produced from any or all Subject Fields
          belonging to the Point Arguello Posting Group, to take effect
          commencing upon the third (3rd) anniversary of this Agreement, by
          giving written notice to Tosco of the proposed change no later than
          ninety (90) calendar days prior to such third anniversary.  If Nuevo
          does not give such notice within such time period then it shall be
          deemed to have waived its rights under this Section 3.2(a)(vii).  If
          Nuevo gives such notice in accordance herewith, and the Parties agree
          on any such change, such change shall take effect as of such third
          anniversary.  If the Parties fail to

                                      -10-
<PAGE>

          agree upon such new pricing by thirty (30) calendar days prior to such
          third anniversary, either Party may submit the issue for resolution in
          accordance with Section 10.1; provided that such Party submit such
          issue for resolution prior to such third anniversary.

               (viii)  Additional Pricing Adjustment.  The Delivery Amount Price
          for all Sales Volumes delivered to or for the benefit of Tosco prior
          to the fourth (4th) anniversary of this Agreement (and only with
          respect to such period) shall be increased by $.05 per Barrel.

          (b)  Periodic Pricing Adjustment.  The Parties acknowledge and agree
     that the pricing formulas set forth in this Agreement utilize appropriate
     pricing mechanisms and publications and fairly reflect the markets that are
     available for the Sales Volumes subject hereto.  As the Parties recognize
     that such pricing mechanisms, publications or markets may change materially
     during the term of this Agreement, the Parties hereby agree to the
     following procedures for periodically evaluating (and potentially
     adjusting) such pricing formulas to reflect the fair market value of the
     Sales Volumes.

               (i)     In the event that, during the term of this Agreement,
          either Party determines, in good faith, that the pricing formulas set
          forth in this Agreement for one or more Subject Fields materially vary
          from the fair market pricing for the relevant Sales Volumes for such
          Subject Fields, then such Party, may propose a change in the pricing
          under this Agreement for such Subject Fields to take effect commencing
          upon the 4th, 6th, 8th 10th, 12th or 14th anniversary of this
          Agreement, by giving the other Party written notice of the proposed
          change no later than ninety (90) calendar days prior to such
          anniversary date.  If a Party gives such notice in accordance
          herewith, and the Parties agree on any such change in the pricing for
          such Subject Fields, such change shall take effect as of such
          anniversary date.  If the Parties fail to agree upon such new pricing
          for any such Subject Field by thirty (30) calendar days prior to such
          anniversary date, either Party may submit the issue for resolution in
          accordance with Section 10.1; provided that such Party submits such
          issue for resolution prior to such anniversary date.  Although the
          Parties are encouraged to engage in dialogue, written or otherwise,
          regarding pricing and pricing changes under this Agreement, including
          under this Section, a Party may only formally invoke the provisions of
          this Section 3.2(b)(i) once per anniversary date listed above.  Until
          a Party asserts in writing that it has formally invoked its rights
          under this Section, it shall in no way be limited in its rights to
          propose or discuss pricing changes hereunder.  Either Party shall have
          the right to request that the other Party confirm in writing whether
          it has, through its written correspondence, formally invoked this
          Section with respect to a given anniversary date, and until receipt of
          an affirmative response to such request for confirmation, the
          requesting Party shall be under no obligation to respond to such
          correspondence.

               (ii)    In the event that, during the term of this Agreement,
          either Party determines, in good faith, that there has occurred a
          material change to the quality specifications attributable to, or any
          other material component used for determining, the NYMEX Price for one
          or more Subject Fields, then such Party, may propose a change in the
          pricing for such Subject Fields under this Agreement to take effect
          commencing upon the 4th, 6th, 8th, 10th, 12th or 14th anniversary of
          this Agreement by giving the other Party written notice of the
          proposed change no later than ninety (90) calendar days prior to such
          anniversary date. If a Party gives such notice in accordance herewith,
          and

                                      -11-
<PAGE>

          the Parties agree on any such change in the pricing for such Subject
          Fields, such change shall take effect as of such anniversary date. If
          the Parties fail to agree upon such new pricing for any such Subject
          Field by thirty (30) calendar days prior to such anniversary date,
          either Party may submit the issue for resolution in accordance with
          Section 10.1; provided that such Party submits such issue for
          resolution prior to such anniversary date. Although the Parties are
          encouraged to engage in dialogue, written or otherwise, regarding
          pricing and pricing changes under this Agreement, including under this
          Section, a Party may only formally invoke the provisions of this
          Section 3.2(b)(ii) once per anniversary date listed above. Until a
          Party asserts in writing that it has formally invoked its rights under
          this Section, it shall in no way be limited in its rights to propose
          or discuss pricing changes hereunder. Either Party shall have the
          right to request that the other Party confirm in writing whether it
          has, through its written correspondence, formally invoked this Section
          with respect to a given anniversary date, and until receipt of an
          affirmative response to such request for confirmation, the requesting
          Party shall be under no obligation to respond to such correspondence.

               (iii) In the event that, during the term of this Agreement, only
          one or fewer Major Posters are publishing gravity price adjustments
          for crude oil produced in California, and the Parties are unable to
          agree upon the gravity adjustment for purposes of Section
          3.2(a)(v)(A), then either Party may submit the issue for resolution in
          accordance with Section 10.1.

               (iv)  In the event of any dispute resolution pursuant to Section
          10.1, the pricing formulas hereunder shall, subject hereto, remain in
          effect pending the written decision of the Arbitrator.  If the
          decision of the Arbitrator results in a change in pricing, (A) the
          change will be retroactive to the anniversary date on which the
          pricing change was to be effective pursuant to this Section 3.2(b),
          and (B) the Parties shall make a cash settlement to reflect such
          retroactivity of the pricing change (together with interest at the
          rate calculated in accordance with Section 4.2) within twenty (20)
          calendar days after the Arbitrator's written decision is delivered.

               (v)   Any pricing change in accordance with this Section shall
          constitute an amendment to this Agreement without further action, but
          the Parties shall take such steps as reasonably requested by either
          Party to further evidence such amendment.

     3.3  Taxes. Tosco shall reimburse Nuevo for all taxes imposed by federal,
state or local governments, other than taxes on income, assessed on Nuevo,
directly or indirectly in connection with and occasioned by the transfer of
title of Sales Volumes delivered under this Agreement. Each Party shall be
solely responsible for any taxes assessed on it pursuant to Sections 8670.40 or
8670.48, or applicable successor Sections, of the California Government Code. If
Tosco is entitled to purchase any such Delivery Amount free of any tax (state or
federal), Tosco shall furnish Nuevo the proper exemption certificate.

                                      -12-
<PAGE>

                                  ARTICLE IV
                                    PAYMENT

     4.1  General. (a) Tosco's Obligation. Tosco shall, except as expressly
provided otherwise in this Agreement, pay Nuevo, by wire transfer in immediately
available funds no later than twenty (20) calendar days after the end of each
Delivery Month, the aggregate for all Subject Fields of (i) the Delivery Amount
Price for each Subject Field and such Delivery Month multiplied by (ii) the
Delivery Amount attributable to such Subject Field and such Delivery Month as
reflected in the relevant delivery tickets. Tosco shall wire amounts due Nuevo
hereunder as follows:

               Chase Bank of Texas, National Association
               ABA#: 113000609
               Credit: Nuevo Energy Company
               Account #: 00103291226
               Reference: Crude Oil Purchases

          (b)  Weekends/Holidays.  Notwithstanding Section 4.1(a):

               (i)   if the deadline for payment under such provisions falls on
                     a Saturday, such deadline shall be deemed to have instead
                     fallen on the immediately preceding Business Day;

               (ii)  if the deadline for payment under such provisions falls on
                     a Sunday, such deadline shall be deemed to have instead
                     fallen on the immediately succeeding Business Day;

               (iii) if the deadline for payment under such provisions falls on
                     a Monday that is not a Business Day, such deadline shall be
                     deemed to have instead fallen on the immediately succeeding
                     Business Day; and

               (iv)  if the deadline for payment under such provisions falls on
                     a Day that is neither a Business Day nor a Saturday, Sunday
                     or Monday, such deadline shall be deemed to have instead
                     fallen on the immediately preceding Business Day.

     4.2  Interest. Any payments that are past due under this Agreement shall
bear interest at the lesser of (i) a rate per annum equal to the rate published
as the "Prime Rate" in the "Money Rates" section of The Wall Street Journal for
the calendar day payment was due (or if not published on such calendar day, such
rate as last published), plus two percent (2%), or (ii) the maximum rate of
interest permitted by applicable law.

     4.3  Accounting Address.  All accounting documentation delivered pursuant
to or in connection with this Agreement shall be delivered to the following
addresses:

     To Nuevo:

          Nuevo Energy Company
          c/o Torch Energy Marketing Inc.
          1221 Lamar, Suite 1600

                                      -13-
<PAGE>

          Houston, Texas 77010
          Attn: Crude Oil Marketing
          Fax: 713-759-0805

     To Tosco:

          Tosco Refining Company
          P.O. Box 52085 DC71
          Tempe, Arizona 85072
          Attn:  Crude Oil Analyst
          Fax:  602-728-7994

                                   ARTICLE V
                         TITLE WARRANTIES AND TRANSFER

     5.1  General. Nuevo warrants good title to the Delivery Amount delivered by
it hereunder and agrees to indemnify and hold harmless Tosco from and against
any and all loss, claim or demand by reason of any failure of such title to such
Delivery Amount or failure or breach of this warranty. Title to, possession and
risk of loss of the Delivery Amount shall, except as set forth in Section 5.2,
pass to Tosco as such Delivery Amount passes from equipment or locations owned
or controlled by Nuevo, or owned or controlled by a party designated to make
delivery on behalf of Nuevo.

     5.2  Specific Fields. Notwithstanding anything to the contrary in Section
5.1 above, for any Sales Volumes to be delivered to Tosco hereunder that is:

          (a) produced from the Subject Field designated as Beta (Edith) in
     Exhibit 1 hereto, title to, possession and risk of loss of such Sales
     Volumes shall pass to Tosco as such Sales Volumes pass from equipment or
     locations owned or controlled by Nuevo, or owned or controlled by a party
     designated to make delivery on behalf of Nuevo into Aera Energy LLC's
     pipeline at Aera Energy LLC's Beta platform;

          (b) produced from the Subject Field designated as Buena Vista in
     Exhibit 1 hereto, title to, possession and risk of loss of such Sales
     Volumes shall pass to Tosco as such Sales Volumes pass from equipment or
     locations owned or controlled by Nuevo, or owned or controlled by a party
     designated to make delivery on behalf of Nuevo into Chevron Pipeline
     Company's KLM pipeline;

          (c) produced from the Subject Field designated as Point Pedernales in
     Exhibit 1 hereto, title to, possession and risk of loss of such Sales
     Volumes shall pass to Tosco as such Sales Volumes pass from Nuevo's Lompoc
     oil and gas plant into Tosco's Unocap pipeline;

          (d) produced from the Subject Field designated as Brea O'Linda in
     Exhibit 1 hereto, title to, possession and risk of loss of such Sales
     Volumes shall pass to Tosco as such Sales Volumes pass from Nuevo's
     Stearn's E. Naranjal lact meter into Tosco's Unocap pipeline.

                                 ARTICLE VI
                                 MEASUREMENT

                                      -14-
<PAGE>

     6.1  Measurement. (a) Method. Deliveries of the Delivery Amount shall be
measured by means of automatic custody transfer unit as and when the Delivery
Amount is produced, or by tank gauge as and when the Delivery Amount is produced
and accumulated in approximate shipping tank lots. All tankage and trucking
equipment shall have certified gauge tables available to the receiving Party.

          (b) LACT Pinning.  Tosco shall provide Nuevo with written notice at
     least forty-eight (48) hours in advance of the "pinning" or other closure
     of any lact meter other than in the case of an emergency, in which case
     Tosco shall provide as much notice of such "pinning" or other closure as is
     practicable.  Nuevo leases are recommended to have on-site crude oil
     storage capacity for at least forty-eight (48) hours of production although
     it is recognized that some leases may have less capacity.

     6.2  Meters and Tests. (a) Measurements in connection with this Agreement
will be obtained using existing meters or such other meters as the Parties may
mutually agree. All measurements hereunder shall be made from static tank gauges
on 100% tank table basis or by positive displacement meters. All measurements
and tests shall be made in accordance with the latest ASTM or ASME-API
(petroleum PD Meter Code) published methods then in effect, whichever apply.
Volume and gravity shall be adjusted to 60 degrees Fahrenheit by the use of the
Petroleum Measurement Tables API 5A and 6A in its latest revision. Full
deduction for all free water and BS&W content shall be made according to the
API/ASTM Standard Method then in effect. The delivering Party shall be
responsible for all pipeline carrier charges due to failure to meet the
specifications required of such Party under this Agreement.

          (b) Either Party shall have the right to have a representative witness
     all meter provings, gaugings, samplings, tests and measurements.  Each
     Party will provide not less than 48 hours notification (unless otherwise
     mutually agreed) to the other Party prior to conducting such activities.
     In the absence of the other Party's representative, such meter provings,
     gaugings, samplings, tests and measurements shall be deemed to be correct
     by the attendant representative.

                                  ARTICLE VII
                             TERM AND TERMINATION

     7.1  Term. This Agreement shall commence as of 7:00 a.m. Pacific Time
January 1, 2000, and shall continue until 6:59 a.m. Pacific Time January 1,
2015, unless terminated earlier in accordance with this Agreement. Termination
of this Agreement shall not relieve any Party from any liability arising
hereunder prior to such termination.

     7.2  Suspension Rights. (a) If an Event of Default occurs and is
continuing, the non-defaulting Party may, by giving five (5) calendar days'
written notice, suspend its obligation to deliver Sales Volumes hereunder or its
obligation to purchase Sales Volumes hereunder, as applicable. While deliveries
of Sales Volumes hereunder are suspended pursuant to this Section 7.2, Nuevo
shall have the right but not the obligation to sell any undelivered volumes to
other purchasers and shall, if Nuevo is the non-defaulting party, be entitled to
damages from Tosco equal to the amount it would have received under the terms of
this Agreement for such undelivered volumes less the amount received from other
purchasers of the undelivered volumes, plus actual costs and expenses incurred
by Nuevo in arranging sales to other purchasers. While any purchases of Sales
Volumes hereunder are suspended pursuant to this Section 7.2, Tosco may purchase
Sales Volumes from other sellers and shall, if Tosco is the non-defaulting
party, be entitled to damages from Nuevo equal to the amount paid to purchase
the Sales Volumes from other sellers less the amount it would have paid for the
Sales Volumes under the terms of this Agreement, plus actual costs and expenses
incurred by Tosco in arranging purchases from other sellers.

                                      -15-
<PAGE>

          (b) The right of the non-defaulting party to suspend performance under
     this Section 7.2 shall continue until the earlier of (i) the Event of
     Default is cured or (ii) this Agreement is terminated pursuant to Section
     7.3.

          (c) An election by a Party to suspend performance under this Section
     7.2 shall not preclude that Party from later electing to terminate this
     Agreement under Section 7.3.

     7.3  Termination Rights. (a) If an Event of Default occurs and is
continuing, the non-defaulting Party may give the defaulting Party written
notice of such Event of Default. If the Event of Default is not cured within 10
calendar days after receipt of such notice, the non-defaulting Party, in
addition to all other rights and remedies available to the non-defaulting Party
and notwithstanding Section 7.1, shall be entitled to terminate this Agreement.

          (b) If this Agreement is terminated pursuant to this Section 7.3 the
     non-defaulting Party may provide the defaulting Party with a statement
     setting out in reasonable detail the computation of the (A) all amounts due
     and payable under this Agreement, including interest on any later payments,
     and (B) the amount of actual damages, losses or other directly related
     costs and expenses (including, but not limited to, reasonable attorney's
     fees and court costs) incurred by the non-defaulting Party arising out of
     or related to the Event of Default or the termination of this Agreement,
     excluding any punitive, consequential or indirect damages.  In calculating
     such amounts, the non-defaulting Party may offset any sums due to the
     defaulting Party, whether hereunder or by reason of any other agreements or
     arrangements, against any amounts owed by the defaulting Party hereunder.

          (c) No later than five Business Days after receiving the statement
     from the non-defaulting Party pursuant to Section 7.3(b), the defaulting
     Party shall pay the non-defaulting Party the sum of the amount set forth in
     such statement.

          (d) Neither Party shall be liable under this Agreement to the other
     Party for any punitive, consequential, special or indirect damages, in tort
     or contract or otherwise, as a result of or related to, any breach of or
     default under this Agreement.

          (e) The rights and obligations created by this Section 7.3 shall
     survive the termination of this Agreement.

                                 ARTICLE VIII
                REPRESENTATIONS, WARRANTIES AND OTHER COVENANTS

     8.1  Nuevo Representations and Warranties. Nuevo represents and warrants to
Tosco that as of the date of execution of this Agreement:

          (a) Nuevo is a corporation duly organized, validly existing and in
     good standing under the laws of the State of Delaware;

          (b) Nuevo has all requisite power and authority to enter into and
     perform this Agreement;

                                      -16-
<PAGE>

          (c) the execution, delivery and performance of this Agreement and the
     transactions contemplated hereby have been duly authorized by Nuevo;

          (d) this Agreement has been duly executed and delivered by Nuevo and
     constitutes the legal, valid and binding obligation of Nuevo, enforceable
     against Nuevo in accordance with its terms, subject, however, to applicable
     bankruptcy, insolvency, reorganization, moratorium, or similar laws
     affecting creditors' rights generally and except as the enforceability
     thereof may be limited by general principles of equity (regardless of
     whether considered in a proceeding in equity or at law);

          (e) the execution, delivery, and performance by Nuevo of this
     Agreement and the transactions contemplated hereby will not (A) violate or
     conflict with any provision of Nuevo's organizational documents (including
     articles of incorporation and bylaws), (B) violate or constitute a default
     under any agreement or instrument to which Nuevo is a party or by which
     Nuevo is bound, which violation will have a material and adverse effect on
     Nuevo's ability to perform its obligations hereunder, (C) violate any
     statute or law or any judgment, decree, order, regulation or rule of any
     court or governmental authority applicable to Nuevo, which violation will
     have a material and adverse effect on Nuevo's ability to perform its
     obligations hereunder, or (D) require any consent, approval or
     authorization of, or designation, declaration or filing with, any
     governmental authority on the part of Nuevo (except such governmental
     authorizations and filings as Nuevo's performance of this Agreement from
     and after the date hereof may then require in the ordinary course of
     business), under any law or any agreements to which Nuevo is a party or by
     which it is bound; and

          (f) there are no suits, judicial or administrative actions,
     proceedings or investigations (including, without limitation, bankruptcy,
     reorganization or insolvency actions, proceedings or investigations)
     pending against Nuevo or its affiliates or, to Nuevo's knowledge,
     threatened that (A) challenge the validity of this Agreement or the
     transactions contemplated hereby, (B) seek to restrain or prevent any
     action taken or to be taken by Nuevo in connection with this Agreement, or
     (C) if adversely determined, would have a material and adverse effect upon
     Nuevo's ability to perform its obligations hereunder.

     8.2  Tosco Representations and Warranties. Tosco represents and warrants to
Nuevo that as of the date of execution of this Agreement:

          (a) Tosco is a corporation duly organized, validly existing and in
     good standing under the laws of the State of Nevada;

          (b) Tosco has all requisite power and authority to enter into and
     perform this Agreement;

          (c) the execution, delivery and performance of this Agreement and the
     transactions contemplated hereby have been duly authorized by Tosco;

          (d) this Agreement has been duly executed and delivered by Tosco and
     constitutes the legal, valid and binding obligation of Tosco, enforceable
     against Tosco in accordance with its terms, subject, however, to applicable
     bankruptcy, insolvency, reorganization, moratorium, or similar laws
     affecting creditors' rights generally and except as the enforceability
     thereof may

                                      -17-
<PAGE>

     be limited by general principles of equity (regardless of whether
     considered in a proceeding in equity or at law);

          (e) the execution, delivery, and performance by Tosco of this
     Agreement and the transactions contemplated hereby will not (A) violate or
     conflict with any provision of Tosco's organizational documents (including
     articles of incorporation and bylaws), (B) violate or constitute a default
     under any agreement or instrument to which Tosco is a party or by which
     Tosco is bound, which violation will have a material and adverse effect on
     Tosco's ability to perform its obligations hereunder, (C) violate any
     statute or law or any judgment, decree, order, regulation or rule of any
     court or governmental authority applicable to Tosco, which violation will
     have a material and adverse effect on Tosco's ability to perform its
     obligations hereunder, or (D) require any consent, approval or
     authorization of, or designation, declaration or filing with, any
     governmental authority on the part of Tosco (except such governmental
     authorizations and filings as Tosco's performance of this Agreement from
     and after the date hereof may then require in the ordinary course of
     business), under any law or any agreements to which Tosco is a party or by
     which it is bound; and

          (f) there are no suits, judicial or administrative actions,
     proceedings or investigations (including, without limitation, bankruptcy,
     reorganization or insolvency actions, proceedings or investigations)
     pending against Tosco or its affiliates or, to Tosco's knowledge,
     threatened that (A) challenge the validity of this Agreement or the
     transactions contemplated hereby, (B) seek to restrain or prevent any
     action taken or to be taken by Tosco in connection with this Agreement, or
     (C) if adversely determined, would have a material and adverse effect upon
     Tosco's ability to perform its obligations hereunder.

     8.3  Covenants. Each Party shall through the term of this Agreement:

          (a) preserve its corporate existence and good standing as necessary to
     perform its obligations hereunder;

          (b) comply in all material respects with all statutes and laws
     applicable to performance of this Agreement and with all judgments,
     decrees, orders, regulations and rules of any court or governmental
     authority applicable to performance of this Agreement;

          (c) give the other Party prompt written notice of the existence of any
     agreement or instrument to which the Party is a party or by which the Party
     is bound that may have a material and adverse effect in the Party's ability
     to perform its obligations hereunder; and

          (d) give the other Party prompt written notice of any pending or
     threatened suits, judicial or administrative actions, proceedings or
     investigations that may have a material and adverse effect on the Party's
     ability to perform its obligations hereunder.

                                  ARTICLE IX
                               FINANCIAL MATTERS

     9.1  Credit Requirements. (a) Credit Rating. Subject to Section 9.1(b), if
Tosco shall fail to maintain a long term issuer rating of BB or higher with
Standard & Poor's Ratings Group, then, within thirty (30) calendar days of
receiving a written request from Nuevo for additional financial assurances,
Tosco shall provide Nuevo with (i) a guaranty of payment and performance from
its ultimate direct or

                                      -18-
<PAGE>

indirect parent corporation in a form acceptable to Nuevo, or (ii) if such
parent corporation is unable or otherwise fails to issue such a guaranty or
fails to maintain its credit rating at the level specified above, a standby
letter of credit in a format and issued by a bank acceptable to Nuevo for an
amount equal to the sum of the amounts due hereunder for the two prior Delivery
Months.

          (b) Lack of Rating Publication.  If Standard & Poor's Rating Group
     shall cease to publish a long term issuer rating for Tosco, the Parties
     shall mutually agree to the use of a substitute rating service and shall
     require the maintenance of a rating by such substitute service that
     provides the closest approximation of the credit quality characterized by
     rating set forth in Section 9.1(a).

          (c) Letters of Credit.  Any letter of credit provided pursuant to this
     Section 9.1 shall, subject to this Section, be for a one-Year period and
     automatically renewable for successive one-Year periods unless the issuing
     bank provides notice of non-renewal at least sixty (60) calendar days prior
     to maturity, in which case a substitute bank acceptable to Nuevo shall
     issue such letter of credit.  Notwithstanding the foregoing, if the then
     remaining obligations to deliver Sales Volumes under this Agreement of
     Nuevo are for a period of less than one Year, then such letter of credit
     may be for a period ending forty-five (45) calendar days after the last
     such scheduled delivery of Sales Volumes.  Provided that Tosco or its
     ultimate direct or indirect parent maintains its credit rating at the level
     specified above, then a parent guaranty meeting the above requirements may
     be substituted for any letter of credit delivered hereunder.  In the event
     that Tosco is required to provide a parent guaranty or letter of credit
     hereunder and then subsequently re-establishes a credit rating at or above
     the level set forth above for a period of 12 consecutive months, the
     obligation to provide a parent guaranty or a letter of credit pursuant to
     this Section 9.1 shall be suspended so long as Tosco maintains its credit
     rating at the level specified for Tosco above.

     9.2  Financial Responsibility. If during the term of this Agreement, the
financial responsibility of a Party becomes such that such Party's ability to
perform its obligations hereunder is impaired or unsatisfactory to the other
Party, in its good faith, (the "demanding party") then in any such case advance
cash payment, properly endorsed negotiable bills of lading, or satisfactory
security shall be given upon written demand, and performance hereunder may be
withheld by the demanding party until such payment, bills of lading, or security
is received. If such payment, bills of lading, or security is not received
within fifteen (15) calendar days from demand therefor, the demanding party may
terminate this Agreement. In the event either Party makes an assignment for the
benefit of creditors or any general arrangement with creditors, or if there are
instituted by or against either Party proceedings in bankruptcy or under any
insolvency law or law for reorganization, receivership or dissolution, the other
Party may withhold shipments or terminate this Agreement without notice. The
exercise by either Party of any right under this paragraph shall be without
prejudice to any claim for damages or any other right under this Agreement or
applicable law.

                                   ARTICLE X
                                   DISPUTES

     10.1 Pricing Disputes. Any and all disputes related to pricing pursuant to
Section 3.2(b), or pricing or delivery location of newly acquired leases, fields
or interests in Sales Volumes pursuant to Section 2.1(d) or 2.1(e), of this
Agreement shall be finally settled by arbitration pursuant to this Section 10.1:

                                      -19-
<PAGE>

          (a) The Parties hereby agree and consent to submit to the American
     Arbitration Association any and all such disputes for settlement by final
     and binding arbitration by one (1) arbitrator (the "Arbitrator") pursuant
     to the Commercial Arbitration Rules of the American Arbitration Association
     in effect as of the date of this Agreement (the "Rules").  The resulting
     decision of the Arbitrator shall be the sole and exclusive remedy between
     the Parties regarding any and all such disputes.

          (b) Arbitration proceedings pursuant to this Section shall be held in
     Los Angeles, California, or such other location as the Parties may agree.
     To the extent that it is necessary to apply substantive law, the
     substantive law of the State of California shall be applied, without
     reference to conflicts of law rules that would direct the matter to the law
     of another jurisdiction.

          (c) The Parties shall initiate arbitration proceedings hereunder in
     accordance with Section 6 of the Rules.  The Parties shall use commercially
     reasonable efforts to agree upon and appoint the Arbitrator, who shall have
     not less than fifteen (15) Years of experience (commercial or legal)
     related to the marketing of domestic crude oil (not less than five (5)
     Years of which shall relate to such marketing in California).  In the event
     that the Parties fail to appoint the Arbitrator within fifteen (15)
     calendar days after the American Arbitration Association receives the
     notice of arbitration, each Party shall submit to the American Arbitration
     Association a list containing the names of three (3) persons who meet the
     qualifications set out above that it nominates to serve as the Arbitrator.
     The Parties shall instruct the American Arbitration Association to appoint
     the Arbitrator (from the names submitted by each Party in accordance
     herewith) within forty-five (45) calendar days after it receives the notice
     of arbitration.  Should a Party fail to submit a list of names, the
     American Arbitration Association shall appoint the Arbitrator from the
     names submitted.  Should both Parties fail to submit a list of names, the
     American Arbitration Association shall appoint the Arbitrator it deems
     appropriate within forty-five (45) calendar days after it receives the
     notice of arbitration.

          (d) Within sixty (60) calendar days after the American Arbitration
     Association receives the notice of arbitration, each Party shall submit to
     the Arbitrator in writing its proposed resolution to such dispute and any
     information it considers relevant to the Arbitrator's decision.  The
     failure of a Party to make such a submission or the absence or default of a
     Party to the arbitration shall not prevent or hinder the arbitration
     procedure in any stage.  The arbitration shall continue in accordance with
     Section 30 of the Rules.

          (e) The Parties shall instruct the Arbitrator to select, as its
     decision, the resolution proposed by one of the Parties.  If only one Party
     submits a proposed resolution in accordance with this Agreement, the
     Arbitrator shall select that resolution as its decision.  The Parties shall
     instruct the Arbitrator to render its decision in writing to the Parties
     within ninety (90) calendar days after the American Arbitration Association
     receives the notice of arbitration.  The decision of the Arbitrator shall
     be final and binding on all Parties.  Notwithstanding any provision in this
     Agreement to the contrary, the Parties shall instruct the Arbitrator that
     the standard by which it shall resolve such disputes under this Section
     10.1 shall be which Party's resolution of such pricing dispute best
     reflects the then current fair market pricing for the relevant production
     from the relevant Subject Fields.

          (f) The Parties agree to exclude any right of application or appeal to
     the courts of any jurisdiction in connection with the arbitration
     proceedings, the subject matter of the arbitration proceedings or the
     decision

                                      -20-
<PAGE>

     of the Arbitrator, except for the purpose of enforcement of a decision of
     the Arbitrator to the extent providing for a change to the method for
     calculating the Delivery Amount Price hereunder, as provided in Section
     10.1(g) below.

          (g) Any written decision of the Arbitrator providing for a change to
     the method for calculating the Delivery Amount Price hereunder shall be
     deemed to constitute an amendment to this Agreement without the necessity
     of formally amending this Agreement.  Any such decision of the Arbitrator
     effecting a pricing change shall be valid and enforceable in any court of
     competent jurisdiction.

          (h) Nothing in this Section 10.1 shall limit the Parties' remedies or
     rights to seek judicial resolution with respect to disputes under this
     Agreement to the extent not involving pricing or otherwise directed by this
     Agreement to be resolved by arbitration pursuant to this Agreement.

     10.2 Other Disputes. (a) Except for arbitration proceedings commenced in
accordance with Section 10.1, any legal action taken in connection with this
Agreement will be brought in a California state court or U.S. Federal District
Court having jurisdiction and in which venue is proper. Nuevo and Tosco each
irrevocably submit to the jurisdiction of such courts.

          (b) Each Party irrevocably waives, to the fullest extent permitted by
     law, any claim or objection that it may have, now or hereafter, that venue
     or jurisdiction is not proper with respect to any such legal action or
     legal proceeding brought in a court set out above, including without
     limitation any claim that such legal action or legal proceeding has been
     brought in an inconvenient forum, any claim that a Party is not subject to
     personal jurisdiction or service of process, and any claim that such court
     does not have proper jurisdiction over the subject matter of the legal
     action or legal proceeding.

          (c) Nuevo and Tosco each appoints the Secretary of State of the State
     of California as its agent for service of process in California, to the
     extent that it does not have a registered agent for service of process in
     California.

                                 ARTICLE XI
                                 MISCELLANEOUS

     11.1 Notices. Notices, other than accounting documentation provided
pursuant to this Agreement, shall be in writing and may be given by delivering
same by hand at, or by sending the same by facsimile, express delivery service
or first-class mail to, the relevant address set forth below or such other
address as each Party may notify the other Party in writing from time to time.
Such notice or communication shall be deemed to have been given when delivered,
if by hand; when actually received, if by first class mail or express delivery
service; and upon receipt by the sender of electronic confirmation of
transmission, if by facsimile.

     To Nuevo:

          Nuevo Energy Company
          c/o Torch Energy Marketing Inc.
          1221 Lamar, Suite 1600
          Houston, Texas 77010
          Attn:  Crude Oil Marketing

                                      -21-
<PAGE>

          Fax:    713-759-0805

     To Tosco:

          Tosco Refining Company
          P. O. Box 52085 DC68
          Phoenix, Arizona 85072
          Attn:  Manager, Crude Oil Supply
          Fax:  602-728-7984

     11.2 Confidentiality. Each Party agrees that it will maintain this
Agreement, all parts and contents hereof, and any information or data received
hereunder, in strict confidence, and that it will not cause or permit disclosure
of same to any third party without the express written consent of the other
Party. Notwithstanding the foregoing, disclosure by a Party is permitted in the
event and to the extent that (a) such Party is required by a court or agency
exercising jurisdiction over the subject matter hereof, by order or by
regulation, to make such a disclosure (provided, however, that in the event
either Party becomes aware of a judicial or administrative proceeding that has
resulted or may result in such an order requiring disclosure, it shall (i) so
notify the other Party immediately, (ii) utilize all reasonably available means
to limit the scope of the order or regulation requiring disclosure, and (iii)
take all actions reasonably necessary to prevent disclosure to the public as a
result of disclosure to the court or administrative body), (b) disclosure is
required by law or regulation or order of governmental authority or by the rules
of any stock exchange applicable to such Party or its affiliates, or as part of
such Party's good faith attempt to comply with disclosure obligations under any
of the same, (c) disclosure is to such Party's affiliates, attorneys, financial
or lending institutions, outside auditors and insurers, provided that the person
or entity to which such information is disclosed executes an agreement to hold
it confidential, and (d) disclosure (other than with respect to Section 3.2
(a)(viii) or 11.9) is to entities involved in the negotiation or bidding for the
acquisition of a Party, its stock or assets, provided that the person or entity
to which such information is disclosed executes an agreement to hold it
confidential. Notwithstanding the foregoing, Nuevo and Tosco shall have the
right to issue press releases, or otherwise make public comments, that
substantially conform to Exhibit 7. This Section 11.2 shall survive the
termination of this Agreement.

     11.3 Assignment. (a) General. Except with respect to assignments in
conjunction with an assignment of the Subject Fields as provided in Section
11.3(b), neither Party shall assign this Agreement without the prior written
consent of the other. Any such purported assignment made without such consent
shall be null and void. With respect to any assignment permitted hereunder, the
assigning Party shall remain liable to the other Party for fulfillment of any
existing obligation under this Agreement. Subject to the limitations on transfer
contained herein, this Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the Parties.

          (b) Producing Property Sales.  Nothing in this Agreement shall limit
     Nuevo's right to sell, exchange or otherwise dispose of any interest in a
     Subject Field or any interest in production therefrom.  Nuevo will notify
     Tosco promptly following any sale of interests in any of the Subject Fields
     subject to this Agreement.  Promptly after notification of such a sale by
     Nuevo, Tosco shall use its best efforts to enter into an agreement with the
     assignee of the sold interests on the same terms and conditions set forth
     herein, to the extent such terms and conditions apply to such interests.
     Notwithstanding Section 11.3(a),  with respect to any such interests that
     are sold, this Agreement (other than with respect to Section 3.2(a)(viii)
     and other

                                      -22-
<PAGE>

     than with respect to Section 11.9) shall be binding on Tosco and the
     successors in interest to Nuevo of such interests without the prior written
     consent of Tosco.

     11.4 Force Majeure. If either Party is rendered unable, wholly or in part,
by Force Majeure to perform its obligations hereunder, other than to make
payments due hereunder, the affected Party shall give written notice to the
other Party of such Force Majeure within forty-eight (48) hours after such
failure to perform, and the obligations of the affected Party shall be suspended
during the continuance and to the extent of the inability so caused, but for no
longer period. In the event that any such period of suspension shall continue in
excess of ninety (90) calendar days, this Agreement may be terminated as to the
Subject Fields subject to such suspension at the option of either Party, without
liability of either Party. Any such failure to perform shall be remedied with
all reasonable dispatch, but Nuevo shall not be required to supply substitute
quantities of Sales Volumes from other sources of supply. Failure to perform
this Agreement due to events of Force Majeure shall not extend the term of this
Agreement.

     11.5 Waiver. No waiver by any Party of any one or more defaults by another
Party in the performance of this Agreement shall operate or be construed as a
waiver of any future default or defaults by the same Party, whether of a like or
of a different character. Except as expressly provided in this Agreement, no
Party shall be deemed to have waived, released or modified any of its rights
under this Agreement unless such Party has expressly stated, in writing, that it
does waive, release or modify such right.

     11.6 Entire Agreement. This Agreement contains the entire agreement of the
parties for the sale of the Delivery Amount from the Subject Fields (other than
the Committed Volumes), and supersedes and replaces in its entirety all prior
agreements regarding crude oil sales, including the following:

          (a) that certain Crude Oil Purchase Agreement dated July 1, 1998,
     between Nuevo and Tosco, as amended, except to the extent such agreement,
     as amended, pertains to Sales Volumes produced from the Subject Field
     designated as "Las Cienegas" in Exhibit 1 (the "Committed Volumes");

          (b) that certain Crude Oil Purchase Agreement dated January 1, 1999,
     between Nuevo and Tosco, as amended;

          (c) that certain crude oil purchase agreement between Nuevo and Tosco,
     dated September 28, 1999, as confirmed on October 13, 1999, regarding 5,000
     barrels of crude oil per calendar day from the Cymric Field, as amended;

          (d) that certain Agreement dated July 21, 1994 between Union Oil
     Company of California, dba Unocal and Torch Energy Marketing, Inc., and its
     affiliates, as amended; and

          (e) that certain agreement with a one-Year term commencing September
     1, 1999, between Nuevo and Tosco regarding production from the Buena Vista
     field.

No statement or agreement, oral or written, made before or at the signing
hereof, shall be offered or used to vary or modify the written terms of this
Agreement.

     11.7 Control. Nothing in this Agreement shall be construed or deemed to
require Nuevo to take any action, or to prohibit Nuevo from taking any action,
regarding operations of or with respect to the Subject Fields. Specifically, but
not by way of limitation, Tosco acknowledges and agrees that Nuevo

                                      -23-
<PAGE>

shall have no obligation to drill, produce, or abandon any well, or to achieve
any specific production volumes. Tosco acknowledges and agrees that all
decisions with respect to such actions and operations are expressly and
exclusively within Nuevo's control.

     11.8 Severability. If and for so long as any provision of this Agreement
shall be deemed or judged to be invalid for any reason whatsoever, such
invalidity shall not affect the validity or operation of any other provisions of
this Agreement except only so far as shall be necessary to give effect to the
construction of such invalidity, and any such invalid provision shall be deemed
severed from this Agreement without affecting the validity of the balance of
this Agreement.

     11.9 Audit. Each Party and its duly authorized representatives shall have
access to the accounting records and other documents maintained by the other
Party that relate to Sales Volumes sold under this Agreement, and shall have the
right to audit such records at any reasonable time prior to the third
anniversary of the termination of this Agreement subject to the following
conditions or restrictions:

          (a) the auditing Party shall furnish the other Party written notice at
     least thirty (30) Business Days prior to the date of the audit;

          (b) the notice shall specify what accounting period,  records and
     other documents the auditing Party desires to review and/or photocopy;

          (c) the audit shall be conducted at the offices of the Party being
     audited during the hours of 8:00 am and 5:00 pm on a Business Day;

          (d) a Party may not initiate an audit hereunder more often than once
     every two Years unless such additional audits are justified on the grounds
     of fraud or the occurrence of a catastrophic event;

          (e) the duration of an audit shall not exceed seven (7) Business Days
     unless matters revealed during such audit reasonably justify an extension
     of such time period;

          (f) the documents, reports and records prepared in the audited Party's
     ordinary course of business shall be furnished in sufficient form to
     substantiate the volumes, deliveries and pricing of the transactions
     contemplated hereunder;

          (g) to the extent, if any, that the Party being audited must use
     internal or external accounting or electronic information systems person(s)
     to retrieve, produce or explain the documents and records requested, the
     auditing Party shall reimburse the other Party the full cost thereof;

          (h) photocopying shall be done at the expense of the auditing Party
     (but photocopying in violation of copyrights shall not be required);

          (i) the auditing Party shall be responsible for its own costs and
     expenses incurred in connection with the audit;

          (j) the audit shall be limited to no more than the three (3) Years
     immediately preceding the date of the request to audit; and

                                      -24-
<PAGE>

           (k) the auditing Party shall designate a single contact person from
     among the auditing personnel to be the person with whom the audited Party
     may limit its contacts.

     11.10 Safety. Each Party agrees that its agents and employees will comply
with all safety regulations of the other when such agents or employees are upon
the premises of the other in connection with the performance of this Agreement.

     11.11 Business Practices. (a) Each Party shall in the performance of this
Agreement comply with all applicable governmental laws and regulations.

           (b) Each Party hereto agrees that all financial settlements,
     billings, and reports rendered to the other Party as provided for in this
     Agreement and/or any amendments to it will, to the best of its knowledge
     and belief, reflect properly the facts about all activities and
     transactions related to this Agreement, which data may be relied upon as
     being complete and accurate in any further recording and reporting made by
     such other Party for whatever purpose.

           (c) Each Party hereto agrees to notify the other Party promptly upon
     discovery of any instance where the notifying Party fails to comply with
     Section 11.11(a) above, or where the notifying Party has reason to believe
     data covered by Section 11.11(b) above is no longer accurate and complete.

     11.12 Governing Law. This Agreement and any disputes arising hereunder
shall be construed, enforced, and governed by the laws of the State of
California, without reference to conflicts of law rules which would direct the
matter to the law of another jurisdiction.

     11.13 Entirety of Agreement and Amendments. This Agreement contains the
entire Agreement of the Parties with respect to the subject matter hereof and
there are no other promises, representations or warranties with respect thereto.
Except as expressly provided otherwise in this Agreement, this Agreement may
only be amended by a written instrument executed by authorized officers of the
Parties specifically referencing this Agreement.

     11.14 Headings. The Section headings used in this Agreement are for
convenience only and shall not be construed as having any substantive
significance or as indicating that all of the provisions of this Agreement
relating to any topic are to be found in any particular Section.

     11.15 General Provisions. To the extent not in conflict with the terms of
this Agreement, Conoco's General Provisions, Domestic Crude Oil Agreements,
effective January 1, 1993 are incorporated herein and made a part hereof for all
purposes.

     11.16 Further Assurances. Each Party shall execute, acknowledge and deliver
such other instruments or documents and shall take such other actions as may be
necessary to carry out their respective obligations under this Agreement or to
consummate or substantiate transactions contemplated by this Agreement.

     11.17 Time and Performance of the Essence. Time and full performance
hereunder by the Parties are of the essence of this Agreement.

                                      -25-
<PAGE>

     11.18 No Third Party Beneficiaries. Other than with respect to permitted
successors and assigns, nothing in this Agreement is intended to inure to the
benefit of any third party and this Agreement shall not create any third party
beneficiaries.

     11.19 Hazards and Risks. Each Party acknowledges the hazards and risks in
handling and using crude oil. Each Party shall advise its affiliates and its and
their employees and third parties, who may purchase or come into contact with
crude oil delivered under this Agreement, about the reasonable hazards and risks
of crude oil, as well as precautionary procedures for handling such crude oil.

     IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of
the date and year first above written.

TOSCO CORP.                                  NUEVO ENERGY COMPANY

By: /s/ Peter A. Sutton                     By: /s/ Douglas B. Chapman
    ---------------------------                 ------------------------
Name: Peter A. Sutton                       Name: Douglas B. Chapman
      -------------------------                   ----------------------
Title: Senior Vice President                  Title: Attorney-in-fact
       ------------------------                      -------------------

                                      -26-
<PAGE>

                               INDEX TO EXHIBITS

Exhibits
--------

Exhibit 1 - Subject Fields
Exhibit 2 - Form of Nuevo Estimated Amount Notification
Exhibit 3 - NYMEX Price/specified Gravity
Exhibit 4 - Posting Group/Subject Field Pricing Differentials
Exhibit 5 - Monthly Crack Slider Adjustments
Exhibit 6 - Point Pedernales Adjustments Example Calculation
Exhibit 7 - Approved Disclosures

                                      -27-<PAGE>

                                     LEASE
                                     -----

STATE OF LOUISIANA
PARISH OF CALCASIEU

     This agreement is entered into between The Calcasieu Marine National Bank
of Lake Charles, ("Lessor"), whose mailing address is P.O. Box 3402, Lake
Charles, Louisiana 70602 and Mercury, Inc. ("Lessee") whose mailing address
                             ------------
until commencement of this lease is One Lakeshore Drive, Suite 1495, Lake
                                    -------------------------------------
Charles, La. 70629.
-------------------

                                  WITNESSETH
                                      I.

     1.1 Leased Premises. Lessor hereby leases to Lessee and Lessee hereby
         ---------------
leases from Lessor certain premises ("Leased Premises") know as Suite 1495 in
                                                                      ----
the building known as the CM Tower, ("Building"), located at One Lakeshore
Drive, Lake Charles, Louisiana, on the block bounded by Mill, Ann, Lakeshore,
Division and Front Streets. The Leased Premises are outlined and hatched on the
floor plan made a part hereof as Attachment "A", initialed by the parties.
Lessor may change the building name at any time.

     The term "Rentable Area" as used herein shall mean that on each floor of
the Building on which the entire space rentable to tenants is or will be leased
to one tenant, the Rentable Area for such floor (hereinafter referred to as
"Single Tenant Floor") shall be the entire floor area measured from the inside
surface of the outer glass line of the Building to the inside surface of the
opposite outer glass line excluding all vertical penetrations (Building stairs,
vertical ducts, elevator shafts, flues, vents, stacks, and pipe shafts).  All
the area on any Single Tenant Floor that is used for elevator lobbies,
corridors, special tenant stairways, restrooms, mechanical rooms, electrical
rooms, and telephone closets situated on such floor, and all vertical
penetrations that are included for special use by a Tenant, and columns and
other structural portions of the Building shall be included within the Rentable
Area of such floor.

     On each floor of the Building on which space is or will be leased by more
than one tenant, the Rentable Area attributable to each such lease shall be the
total of (i) the entire floor area included within the leased premises covered
by such lease, being the floor area bounded by the inside surface of the
exterior glass lines enclosing the leased premises, the exterior of all walls
separating such leased premises from any public corridors or other public areas
on such floor and the centerline of all demising walls separating such leased
premises from other areas leased or to be leased to other tenants on such
floors, and (ii) a pro rata portion of the floor area covered by the elevator
lobbies, corridors, restrooms, mechanical rooms, electrical rooms, and telephone
closets situated on such floor.

     1.2 For purposes of this Lease, the net rentable area ("NRA") of the Leased
Premises is agreed to be approximately 37,949 square feet (35,148 usable square
                                       ------
feet) comprised of the following Suites:

     a.   Existing Leased Premises
          Suite 1590      -    578 RSF (   503 USF)
          15 Equip. Room  -    230 RSF (   200 USF)
          Suite 1470      -    503 RSF (   437 USF)
          Suite 135       -    505 RSF (   439 USF)
                             ---------------------
          Total       -      1,816 RSF ( 1,579 USF)

     b.   Leased Premises to be constructed
          Suite 2000  -     10,255 RSF ( 8,917 USF)
          Suite 1900  -     16,482 RSF (16,482 USF)
          Suite  700  -      9,396 RSF ( 8,170 USF)
                            -----------------------
          Total       -     36,133 RSF (33,569 USF)

The total NRA of the entire Building is agreed to be 372,798 square feet.

                                       1

<PAGE>

                                      II.

     2.1  Term.  The term of this Lease will be 60 months commencing on the 1st
          ----                                  --                          ---
day of September, 1996, or upon occupancy, whichever is earlier, and ending on
       ---------------
the 31st day of August, 2001.  If Lessor is unable to give Lessee possession of
    ----        ------------
the Leased Premises on the date provided above for commencement of the term, and
provided Lessee is not responsible for such delays, the rent will not begin
until the Leased Premises are available for occupancy, and the term of this
Lease will be extended for a period equal to the period of such delay in
availability.  No such failure to make the Leased Premises available on the
commencement date of the term will affect the validity of this Lease or the
rights of the parties under this Lease, or subject Lessor to any liability.
SEE WORKLETTER (ATTACHMENT "E")

     2.2  Holding Over.  In the event of holding over by Lessee after expiration
          ------------
or termination of this Lease without the written consent of Lessor, Lessee shall
pay as liquidated damages double rent for the entire holdover period.  No
holding over by Lessee shall operate to extend the Lease other than month to
month.  In the event of any unauthorized holding over, Lessee shall also
indemnify Lessor against all claims for damages by any other Lessee to whom
Lessor may have leased all or any part of the premises effective upon the
termination of the Lease.

                                     III.

     3.1  As Base Rental, Lessee shall pay Lessor without deduction, abatement
or setoff, the sum of Thirty four thousand nine hundred forty four dollars and
                      --------------------------------------------------------
seventy cents ($34,944.70) on or before the first day of each calendar month of
-------------
the lease term. If the Lease does not commence on the first day of a calendar
month or end on the last day of a calendar month the monthly installment of Base
Rental will be prorated. All rent more than ten (10) days in arrears shall bear
interest at a rate that is the maximum allowable by law from the first of the
month or the date due until paid. Any payment of interest shall also include the
rent due.

     3.2  "Operating Expenses" as used herein shall mean all expenses, costs and
disbursements of every kind and nature (but not replacement of capital
investment items nor general office expense nor specific costs especially billed
to and paid by specific tenants nor rental commissions) which Lessor shall pay
in connection with the ownership and operation of the Building, computed on the
accrual basis, including but not limited to:

     (a)  wages and salaries of employees engaged in operation and maintenance
of the Building, including taxes, insurance and benefits relating thereto.

     (b)  supplies and materials used in operation and maintenance of the
Building.

     (c)  water, power, heating, lighting, air conditioning, and ventilating the
Building.

     (d)  maintenance and service agreements on equipment, including window
cleaning and elevator maintenance.

     (e)  casualty and liability insurance applicable to the Building and
Lessor's equipment required to operate or maintain the Building.

     (f)  taxes and assessments and other governmental charges attributable to
the Building or its operation whether Federal, State, Parish or Municipal and
whether the taxing body be presently existing or subsequently created; excluding
Federal and State taxes on income. Lessee shall be responsible for ad valorem
taxes on its personal property and on the value of leasehold improvements
exceeding standard building allowances.

     (g)  repairs and general maintenance, excluding the roof, foundation and
exterior walls, or paid by proceeds of insurance.

     (h)  reasonable fees for management of the Building.

     (i)  amortization of the cost of the capital improvement on items
primarily for the purpose of safety, saving energy or reducing operating costs
or which may be required by governmental

                                       2
<PAGE>

authority. Such costs shall be amortized over each item's reasonable life or the
reasonable life of the Building, whichever is shorter.

     3.3 If Operating Expenses for any calendar year of the Lease term exceed
Base Year 1996 Lessee shall pay Additional Rent computed by the following
--------------
formula.

Lessee's NRA x (Operating Expenses exceeding Base Year 1996 x Total Building NRA
------------                                 --------------
total NRA)

     Such Additional Rent shall be due within ten (10) days after Lessor bills
Lessee therefor. Thereafter, Lessor may bill Lessee each month for one-twelfth
(1/12th) of the estimated Additional Rent amount. In the event of such billing
Lessee shall pay such estimated Additional Rent contemporaneously with the Base
Rental on or before the first day of each calendar month, in advance. After the
end of the calendar year, Lessor shall compute the actual Additional Rental
using the formula above; if Lessee shall have overpaid, Lessor shall refund the
excess, but if Lessee shall have underpaid, Lessee shall pay the balance within
10 days after Lessor bills therefor. Operating expenses of less than $ Base Year
                                                                       ---------
1996 shall not cause a reduction in the Base Rental.
----

     If during any calendar year of the Lease, the occupancy of the office
rentable area of the Building averages less than ninety-five percent (95%), then
it is agreed that the Operating Expenses will be adjusted for such year so that
all such Operating expenses shall be computed as though the office rentable area
of the Building had been ninety-five percent (95%) occupied for such calendar
year. All such expense categories will be accounted for and reported in
accordance with generally accepted accounting principles.

     3.4  Lessor may make supplemental rental charges to be paid with the
monthly Base Rental as authorized in sections 4.1 (d), 4.1 (h) and 6.1 below.

     3.5  Examination of Records.  Lessee and its authorized agent shall have
          ----------------------
the right to examine the records of Lessor pertinent to operating costs for the
purpose of verifying accuracy of any statement furnished by Lessor to Lessee.
Lessee's right to conduct such examinations shall be limited to one examination
with respect to each statement, which shall be made and completed within sixty
(60) days after such statement shall have been furnished to Lessee, and shall be
made at the offices of Lessor, at such times and on such days as are reasonably
convenient to Lessor and Lessee.  Lessee may within 45 days following completion
of such examination give notice to Lessor disputing the amount and propriety of
any item appearing on or excluded from such statement, including any amounts of
additional rent or other charge alleged to be owing, and if Lessee shall fail to
give such notice within such period of 45 days, its right to dispute the same
shall conclusively be deemed waived.

                                      IV.

     4.1  Lessor services.  As standard building services, Lessor will:
          ---------------
     (a)  contract with all public utilities to furnish the utility services to
the Building;
     (b)  provide security for the Building during weekends and after normal
working hours;
     (c)  furnish water at points of supply provided for general use of tenants;
     (d)  provide central heat and air conditioning in season, at such
temperature and in such amounts as are considered by Lessor to be standard
during normal business hours. Normal business hours shall be defined as Monday
through Friday 7:00 a.m. to 6:00 p.m. and Saturdays from 8:00 a.m. to 1:00 p.m.,
(holidays excepted). Such service during weekdays beyond normal business hours,
on Saturday afternoons, Sundays (and holidays) to be furnished only upon request
of Lessee, who shall bear the then standard Building

                                       3
<PAGE>

charge. Standard Building charge for after hour air conditioning use shall be
defined as $2.75 per hour when the central plant is in operation and $35.00 per
hour when the central plant is not in operation. Such charges are subject to
change based on actual increases in electrical company rates.

     (e)  maintain all public areas and special service areas of the Building
and Parking Garage in the manner and to the extent deemed by Lessor to be
standard;

     (f)  provide elevators for access to and egress from the Building floors on
which the Leased Premises are situated;

     (g)  furnish janitor service on a five (5) day week basis; provided,
however, if Lessee's floor covering or other improvements (not building
standard) cause additional cleaning cost, Lessee will pay such cost monthly as
additional rent;

     (h)  furnish electrical facilities and power for typewriters, calculators,
personal computers, printers, photo copying equipment and other machines of
similar low electrical consumption as are normally a part of businesses
operating in a class "A" office building in Lake Charles, Louisiana. However,
Lessor may meter and bill monthly for the estimated additional power cost for
electricity required for equipment requiring special air conditioning needs and
special electrical wiring.

     (i)  provide all building standard fluorescent bulb replacement in public
areas, restroom areas and stairwells; Lessee shall pay for bulb replacement in
the Leased Premises.

     (j)  furnish Lessee two (2) keys for each corridor door entering the Leased
Premises. Additional keys will be furnished by Lessor at a charge of $2.00 per
key on an order signed by Lessee's authorized representative. All keys shall
remain the property of Lessor. No additional locks shall be allowed on any door
of the Leased Premises without Lessor's permission, and Lessee shall not make,
or permit any duplicated keys to be made, except those furnished by Lessor. Upon
termination of this Lease, Lessee shall surrender to Lessor all keys of the
Leased Premises, and give to the Lessor the explanation of the combination of
all locks for safes, safe cabinets and vault doors, if any, left in the Leased
Premises;

     (k)  at Lessee's cost provide and install signs with letters and numerals
in Building standard graphics as requested by Lessee and no others shall be
permitted on the Leased Premises. Lessee may not paint, place or display any
sign, advertisement, placard or other graphics visible from the exterior of the
building, or from the corridors or lobby without Lessor's approval, which will
not be unreasonably withheld.

     (l)  provide access to and use of Building Stairs between the Leased
Premises provided such use does not interfere with the use of Lessor;

     (m)  provide repairs and general maintenance of the Leased Premises and the
Building and Parking Garage;

     (n)  provide casualty and liability insurance applicable to the Building
and Lessor's non-banking areas;

     (o)  pay taxes, assessments and other governmental charges attributable to
the Building or its operation whether Federal, State, Parish or Municipal and
whether the taxing body be presently existing or subsequently created;

     (p)  incur the cost of capital investments on items primarily for the
purpose of safety, saving energy or reducing operating cost or which may be
required by governmental authority.

     4.2  No interruption or malfunction of any of such services shall
constitute an eviction or disturbance of Lessee's use and possession of the
Leased Premises or Building or a breach by Lessor of any of its obligations
hereunder or render Lessor liable for damages or entitle Lessee to be relieved
from any of its obligations hereunder (including the obligation to pay rent) or
grant Lessee any right of set-off, unless after notice by Lessee of such
interruption or malfunction, Lessor fails to use reasonable diligence to restore
such service.

                                       4
<PAGE>

                                      V.

     5.1  Lessee's Obligations. Lessee covenants and agrees it will cooperate
          --------------------
with and adhere to the provisions set forth in Attachment "B" (Rules and
Regulations) of this lease agreement.

     5.2  Care of the Leased Premises. Lessee shall not commit or allow any
          ---------------------------
waste or damage to the Leased Premises, and at the termination of this lease,
Lessee shall deliver up said Leased Premises to Lessor in as good condition as
at date of possession by Lessee, ordinary wear and tear excepted.

     5.3  Removal of Property. Lessee may remove its trade fixtures, office
          -------------------
supplies and movable office furniture and equipment not attached to the Building
provided: (1) such removal is made prior to the termination of this lease; (2)
Lessee is not in default of any obligation or covenant under this Lease at the
time of such removal; and (3) Lessee promptly repairs all damage caused by
removal. All other property left at the Leased Premises and any alteration or
addition to the Leased Premises (including wall-to-wall carpeting, paneling or
other wall covering) and any other articles attached or affixed to the floor,
wall or ceiling of the Leased Premises shall become the property of Lessor and
shall remain upon and be surrendered with the Leased Premises as part thereof at
the termination of this Lease, Lessee hereby waiving all rights to any payment
or compensation therefor. If, however, Lessor so requests in writing, Lessee
will, at its expense, promptly remove any and all fixtures, equipment and
property placed or installed by it in the Leased Premises and repair any damage
caused by such removal.

     5.4  Alterations, Additions, Improvements. Lessee shall make no
          ------------------------------------
alterations, improvement, repair, replacement or addition to the Leased Premises
without the prior written consent of Lessor which will not be unreasonably
withheld. Consent shall be conditioned upon Lessee's contractors, laborers,
material-men and others working in harmony and not interfering with any labor
utilized by Lessor or by any other Lessee's contractors or mechanics; and if at
any time such entry by one or more persons furnishing labor or material for
Lessee's work shall cause disharmony or interference, the consent granted by
Lessor may be withdrawn upon eight (8) hours written notice delivered to Lessee
or to the person in charge of the work at time of delivery.

     5.5  Entry for Repairs and Inspection. Lessee shall, permit Lessor or its
          --------------------------------
agents to enter any part of the Leased Premises at reasonable hours to inspect
same, clean or make repairs, alterations or additions thereto, as Lessor may
deem necessary or desirable, and Lessee shall not be entitled to any abatement
or reduction of rent by reason thereof.

     5.6  Repairs by Lessee. Lessee shall, at its own expense, repair or replace
          -----------------
any damage or injury done to the Building, caused by Lessee or Lessee's agent,
employees, invitees or visitors and not covered by Lessor's insurance; provided,
however, if Lessee fails to make such repairs or replacement promptly Lessor
may, at its option, make such repairs or replacements and Lessee shall repay the
cost thereof to the Lessor on demand.

     5.7  Use and Violations of Insurance Coverage. Lessee shall use the Leased
          ----------------------------------------
Premises only for business office space, and not for any business which is
unlawful, disreputable or deemed to be extra hazardous on account of fire.
Lessee shall not do or permit anything to be done which would increase the rate
for Lessor's fire and extended coverage insurance.

     5.8  Nuisance. Lessee shall conduct its business and control its agents,
          --------
employees, invitees and visitors so as not to create any nuisance, or interfere
with, annoy or disturb Lessor or any other tenant.

     5.9  Laws and Regulations-Rules of Building. Lessee shall comply with all
          --------------------------------------
laws, ordinances, orders, rules and regulations (State, Federal, Parish,
municipal and other agencies or bodies having any jurisdiction thereof) relating
to the use, condition or occupancy of the Leased Premises. Lessee will comply
with written rules of the Building adopted by Lessor from time to time for the

                                       5
<PAGE>

safety, care and cleanliness of the Leased Premises and for preservation of good
order therein as specified in Attachment "B" of this Lease.

     5.10  Estoppel Certificate or Three Party Agreement.  At Lessor's request,
           ---------------------------------------------
Lessee shall execute either an estoppel certificate addressed to Lessor's
mortgagee or a three-party agreement among Lessor, Lessee and such Mortgagee
certifying facts and agreeing to such notice provison and other matters as such
Mortgagee may reasonably require in connection with Lessor's financing.

     5.11  Liability and Indemnity.  Lessee and Lessor agree to indemnify and
           -----------------------
hold each other harmless from all claims (including costs and expenses of
defending against such claims) for any injury or damage to any person or the
property of any person occurring during the term of this lease in or about the
Leased Premises or Building arising from any negligent or intentional act or
omission of each other's agents, employees, licensees, contractors, customers,
clients, visitors or invitees, for which such indemnifying party would be
directly or vicariously liable. Lessor and Lessee shall not be liable to each
other or their agents, employees, licensees, invitees, customers, clients or
visitors for any damage to person or property resulting from any act, omission,
or negligence of any co-Lessee, visitor or other occupant of the Building.

                                      VI.

     6.1   Parking.  During the term of this Lease, Lessee shall have the right
           -------
to use, rent free, parking for at least thirty eight (38) car/s in accordance
                                        ------------
with the parking ratio of one free space per 1,000 square feet of Net Rentable
Area with one per 750 square feet guaranteed in Lessor's adjacent Parking
Garage. Thirteen (13) of these spaces may be designated "Reserved". In addition
Lessee may have the right to use, rent free, parking for the remainder of its
employees in the parking garage on an availability basis until Lessor builds an
additional surface lot. At that time, Lessee will have the option to park these
additional vehicles in the surface lot free of charge or remain in the garage at
a charge of $17.50 per space per month. Lessor may designate from time to time
the area within which each such car may be parked. Lessor may make, modify and
enforce the rules and regulations relating to the parking of automobiles in the
Parking Garage, and Lessee will abide thereby. Parking rates for any additional
spaces shall be at Lessor's sole discretion.

                                     VII.

     7.1   Peaceful Enjoyment.  Lessee shall, and may peacefully have, hold and
           ------------------
enjoy the Leased Premises, provided that Lessee pays all rental and other sums
to be paid and performs all of Lessee's covenants and agreements. This lease
does not grant any rights to light, view or air over adjacent property, so that
any diminution or shutting off of light, view or air by any structure which
may be erected adjacent to the Building shall in no way affect this lease or
impose any liability upon Lessor.

     Lessor shall not be responsible for the non-observance or violation by any
other lessee, or employees, agents or visitors of other lessees, of the terms of
the lease granted to such other lessee, nor for any resulting damage.

                                     VIII.

     8.1   Assignment or Sublease.  Lessee may not assign this Lease or sublease
           ----------------------
the Leased Premises or any part thereof or mortgage, pledge or hypothecate its
leasehold interest or grant any concession or license within the Leased Premises
without the prior express written consent of Lessor, which may not be
unreasonably withheld. Notwithstanding any such consent, Lessee will remain
liable in solido with each approved assignee or sublessee who shall also
automatically become liable in solido for all obligations of Lessee hereunder;
and Lessor may enforce the provisions of this instrument directly against Lessee
and/or any assignee or sublessee without proceedings in any way against any
other person. If the rent payable by sublessee under any such permitted sublease
(or a

                                       6
<PAGE>

combination of the rent payable under such sublease plus any bonus or other
consideration therefor or incident thereto) exceeds the rent payable under this
Lease for the portion of the premises involved, then Lessee shall be obligated
to pay Lessor all such excess rental and other consideration within ten (10)
days following payment by the sublessee, assignee, licensee or other transferee.

     8.2  Assignment by Lessor. Lessor may transfer and assign, in whole or in
          --------------------
part, all or any of its rights and obligations hereunder and in the Building and
property referred to herein; and in such event in which its transferee assumes
Lessor's obligations hereunder, no further liability or obligation shall
thereafter accrue against Lessor hereunder.

                                      IX.

     9.1  Limitation of Lessor's Personal Liability. Lessee specifically agrees
          -----------------------------------------
to look solely to Lessor's interest in the Building for the recovery of any
judgement from Lessor, it being agreed that Lessor shall never be personally
liable for any such judgement. The Provision contained in the foregoing sentence
is not intended to, and shall not, limit any right that Lessee might otherwise
have in connection with enforcement or collection of amounts which may become
owing or payable under or on account of insurance maintained by Lessor.

     9.2  Liability Insurance. Lessee, at its expense, is required to carry,
          -------------------
for the protection of the Lessee, Lessor and Lessor's agent, as their interests
may appear, Comprehensive General Liability Insurance with limitation of not
less than $1,000,000.00 combined single limit per occurrence covering any
accidents for which Lessee is legally liable, with a responsible insurance
company qualified to do business in the State of Louisiana, copy of certificates
of insurance to be furnished Lessor upon request.

     Lessee shall provide Lessor with thirty (30) days notice of cancellation.

     9.3  Damages From Certain Causes. Lessor shall not be liable or responsible
          ---------------------------
to Lessee, its employees or invitees for any loss or damage to any property or
person occasioned by burglary, theft, fire, malfunction or failure of mechanical
systems (including but not limited to plumbing, electrical, sprinkler, air
conditioning, heating, lighting, etc.), act of God, public enemy, injunction,
riot, strike, insurrection, war, court order, requisition or order of
governmental body or authority, or for damage or inconvenience which may arise
through repair or alteration of any part of the Building, or failure to make
repairs.

                                      X.

     10.1 Subordination to Mortgage. This lease will be subject and subordinate
          -------------------------
to any mortgage which may now or hereafter encumber the Building. This clause
shall be self-operative and no further instrument of subordination need be
required by any mortgagee. In confirmation of such subordination, however,
Lessee shall at Lessor's request execute promptly any appropriate certificate or
instrument that Lessor may request. In the event of the enforcement of such
mortgage, Lessee will, upon request of the party succeeding to the interest of
Lessor as a result of such enforcement, automatically become the Lessee of such
successor in interest without change in the terms of this Lease; provided,
however, that such successor in interest shall not be bound by (i) any payment
of rent or additional rent for more than one month in advance except
prepayments in the nature of security for the performance by Lessee of its
obligations under this Lease or (ii) any amendment or modification of this Lease
subsequent to the mortgage, made without the written consent of the mortgagee.

                                      XI.

     11.1 Eminent Domain. If there shall be taken by eminent domain during the
          --------------
term of this Lease any substantial part of the Leased Premises or Building,
Lessor or Lessee may elect to terminate this Lease. If the Lease continues in
effect, the rental shall be

                                       7
<PAGE>

reduced in proportion to the area of the Leased Premises so taken and Lessor
shall repair any damage to the Leased Premises or Building resulting from such
taking.

     11.2 All sums awarded or agreed upon between Lessor and the condemning
authority for the taking of the interest of Lessor or Lessee, whether as damages
or as compensation, will be the property of Lessor, including without limitation
any so-called leasehold advantage, but excluding any compensation for
improvements made at Lessee's expense.

     11.3 If this Lease should be terminated under any provision of this
paragraph, rent shall be payable to the date that possession is taken by the
taking authority, and Lessor will refund to Lessee any prepaid unaccrued rent
less any sum then owing by Lessee to Lessor.

                                     XII.

     12.1 Fire or Other Casualty. During the term of this Lease, Lessor will be
          ----------------------
responsible for obtaining and maintaining adequate insurance of not less than
80% of full replacement costs, insuring the total building against loss by
reason of fire, tornado, windstorm or other casualty, and shall furnish Lessee
with the evidence of such insurance upon Lessee's request.

     If at any time during the lease term, the Leased Premises or any
substantial portion of the Building shall be damaged or destroyed by fire or
other casualty, then Lessor shall repair and reconstruct the Leased Premises and
Building to the condition in which they existed immediately prior to such damage
or destruction, provided however that Lessor may terminate this lease by notice
to Lessee within 30 days after Lessor's receipt of the first offer from its
insurer or within 60 days after the date of the loss, whichever occurs sooner,
if the insurance proceeds from the loss, plus the deductible provided in the
fire insurance policy, equal less than 95% of cost of the repair and
reconstruction.

     In any such circumstances, rental shall abate proportionately during the
period and to the extent that the Leased Premises are unfit for use by Lessee in
the ordinary conduct of its business. If Lessor is required or has elected to
repair and restore the Leased Premises, this Lease shall continue in full force
and effect and such repairs will be made within a reasonable time thereafter,
subject to delays arising from shortages of labor or material, acts of God, war
or other conditions beyond Lessor's reasonable control. In the event that this
Lease is terminated as herein permitted, Lessor shall refund to Lessee the
prepaid rent (unaccrued as of the date of damage or destruction) less any sum
then owing Lessor by Lessee. If Lessor has elected to repair and reconstruct the
Leased Premises, then the lease term shall be extended by a period of time equal
to the period of such repair and reconstruction.

     12.2 Should the annual premiums paid by Lessor exceed the standard rates
because Lessee's operations, contents of the Leased Premises, or improvements
with respect to the Leased Premises beyond building standard, result in
extra-hazardous exposure, Lessee shall promptly pay the excess amount of the
premium upon request by Lessor.

     12.3 Lessee shall maintain at its expense fire and extended coverage
insurance on all of its personal property, including removable trade fixtures,
located in the Leased premises and on all additions and improvements made by
Lessee not required to be insured by Lessor.

     12.4 Waiver of Subrogation Rights. Lessor and Lessee each hereby releases
          ----------------------------
the other and waives any and all rights of recovery, claim, action or cause of
action, any loss or damage that may occur to the premises hereby leased or any
improvements thereto, or the Building, or any improvements thereto, or any
personal property of either party therein, by reason of fire, the elements, or
any other cause which could be insured against the terms of standard fire and
extended coverage insurance policies regardless of cause or origin, including
negligence of the other party hereto, its agents, officers or employees, and
covenants that no insurer shall hold any right of subrogation against such other
party.

                                       8
<PAGE>

                                     XIII.

     13.1      Default by Lessee.  Each of the following acts or omissions of
               -----------------
Lessee or occurrences shall constitute an "Event of Default":

     (1)   Failure to pay rent or to perform or observe any other covenant or
           condition of this lease by Lessee within ten (10) days following
           written notice to Lessee of such failure.
     (2)   Abandonment or vacating of the Leased Premises or any significant
           portion thereof.
     (3)   The filing or execution or occurrence of: a petition in bankruptcy or
           other insolvency proceeding by or against Lessee; or a petition or
           answer seeking relief under any provision of Bankruptcy Act; or an
           assignment for the benefit of creditors; or a petition or other
           proceeding by or against the Lessee for the appointment of a trustee,
           receiver or liquidator of Lessee or any of Lessee's property; or a
           proceeding by and governmental authority for the dissolution or
           liquidation of Lessee.

     13.2  Remedies upon Default.  Upon the occurrence of any Event of Default,
           ---------------------
Lessor has the option, in addition to any other remedy or right given hereunder
or by law, to do any one or more of the following:

     (1)   Terminate this Lease, in which event Lessee shall immediately
     surrender possession of the Leased Premises to Lessor.
     (2)   Enter upon and take possession of the Leased Premises and expel or
     remove Lessee and any other occupant therefrom, with or without having
     terminated the lease.
     (3)   Alter locks and other security devices at the Leased Premises.

Exercise by Lessor of any one or more remedies hereunder granted or otherwise
available shall not be deemed to be an acceptance or surrender of the Leased
Premises by Lessor, whether by agreement or by operation of law, it being
understood that such surrender can be effected only in accordance with this
written agreement of Lessor and Lessee. No such alteration of security devices
and no removal or other exercise of dominion by Lessor over the property of
Lessee or others at the Leased Premises shall be deemed unauthorized or
constitute a seizure of conversion, Lessee hereby consenting, after any Event of
Default, to such exercise of dominion over Lessee's property within the
Building. All claims for damages by reason of such re-entry and/or repossession
and/or alteration of locks or other security devices are hereby waived, as are
all claims for damages by reason of any seizure, sequestration proceeding or
other legal process.

     13.3 If Lessor elects to terminate the Lease by reason of an Event of
Default, then notwithstanding such termination, Lessee shall be liable for and
shall pay Lessor the sum of all rent and other indebtedness accrued to the date
of such termination, plus, as damages, an amount equal to the value of the rent
reserved hereunder for the remaining portion of the original lease term.

     13.4 If Lessor elects to repossess the Leased Premises without terminating
the Lease, all rent and other indebtedness accrued to the date of such
repossession, plus rent required to be paid by Lessee to Lessor during the
remainder of the lease term shall immediately become due and payable, and Lessor
may immediately bring action to collect such amounts then due without waiting
until expiration of the lease term, provided that any net sums thereafter
received by Lessor through reletting the Leased Premises during said period
(after deducting expenses incurred by Lessor as provided in 13.5), shall be
applied against the total indebtedness of Lessee or Lessor. In no event shall
Lessee be entitled to any excess of any rent obtained by reletting over and
above the rent herein reserved.

     13.5 In case of an Event of Default, Lessee shall also be liable for and
shall pay to Lessor in addition to any sum provided

                                       9

<PAGE>

for above: broker's fees incurred by Lessor in connection with reletting the
whole or any part of the Leased Premises; the cost of removing and storing
Lessee's or other occupant's property; the cost of repairing, altering,
remodeling or otherwise putting the Leased Premises into condition acceptable to
a new tenant or tenants; and all reasonable expenses incurred by Lessor in
enforcing Lessor's remedies, including reasonable attorney's fees. Past due rent
and other past due payments shall bear interest from maturity at twelve percent
(12%) per annum (or such lower rate as may be required to comply with the usury
laws of Louisiana), until paid.

     13.6 In the event of termination or repossession of the Leased Premises for
an Event of Default, Lessor shall not have any obligation to relet or attempt to
relet the Leased Premises, or any portion thereof, or to collect rental after
reletting; and in the event of reletting, Lessor may relet the whole or any
portion of the Leased Premises for any period, to any tenant, and for any use
and purpose.

     13.7 If Lessee should fail to make payment or cure any default hereunder
within the time herein permitted, Lessor, without being under any obligation to
do so and without thereby waiving such default, may make such payment and/or
remedy such other default for the account of Lessee (and enter the Leased
Premises for such purpose), and thereupon Lessee shall be obligated to, and
hereby agrees, to pay Lessor, upon demand, all costs, expenses and disbursements
(including reasonable attorney's fees) incurred by Lessor in taking such
remedial action.

     13.8 In the event of any such default by Lessor, Lessee may give Lessor
written notice specifying such default with particularity, and Lessor shall
thereupon have thirty (30) days in which to cure any such default, or to take
reasonable action designed to cure the same, if such default, cannot be cured
within thirty (30) days from the date of such notice to cure the default. Unless
and until such notice is given and Lessor fails to so cure or take reasonable
action designed to so cure any default after such notice, Lessee shall not have
any remedy or cause of action by reason thereof. All obligations of Lessor
hereunder will be construed as covenants, not conditions; and all such
obligations will be binding upon Lessor only during the period of its possession
of the Building and not thereafter.

     13.9 In the event of the transfer by Lessor of its interest in the
Building, Lessor shall thereupon be released and discharged from all covenants
and obligations of the Lessor thereafter accruing if such covenants and
obligations shall be binding during the lease term upon the new transferee.

     13.10 Non-Waiver. Neither acceptance of rent by Lessor nor failure by
           ----------
Lessor to complain of any action, non-action or default of Lessee shall
constitute a waiver of any of Lessor's rights hereunder. Waiver by Lessor of any
right for any default of Lessee shall not constitute a waiver of any right for
either a subsequent default of the same obligation or any other default. Receipt
by Lessor of Lessee's keys to the Leased Premises shall not constitute an
acceptance of surrender of the Leased Premises.

     13.11 All rights and remedies under this Lease shall be cumulative and none
shall exclude any other rights or remedies allowed by law, except as otherwise
specified in this Lease.

                              XIV. MISCELLANEOUS

     14.1 Successors and Assignees. This Lease shall be binding upon and inure
          ------------------------
to the benefit of the successors and assigns of the Lessor, and shall be binding
upon and inure to the benefit of Lessee, its successors, and to the extent
assignment may be approved by Lessor hereunder, Lessee's assigns.

     14.2 Louisiana Law Applies. This lease is declared to be a Louisiana
          ---------------------
contract, and all of the terms thereof shall be construed according to the laws
of the State of Louisiana. Lessee hereby agrees that the State District Court of
Calcasieu Parish shall have jurisdiction over suits arising out of this
contract.

     14.3 Should any provisions of this lease be illegal, invalid, or
unenforceable, under present or future laws effective during the

                                      10

<PAGE>

term hereof, the remainder of this Lease shall not be affected thereby; (and in
lieu of each provision there shall be substituted a clause as similar in terms
to such invalid provision as may be possible and be legal, valid and
enforceable). However, should any law, governmental regulation, or judicial
interpretation thereof, come into force which shall prevent the exercise of any
substantial right hereunder, the party whose right is so affected may terminate
this Lease 90 days after written notice of termination to the other party.

     14.4 Alteration. This Lease may not be altered, changed or amended, except
          ----------
by a written instrument in writing, signed by both parties hereto.

     14.5 Force majeure. Should either party hereto be delayed, hindered or
          -------------
prevented from the performance of any act required hereunder by reason of
strike, lock-out, labor trouble, inability to procure materials, failure of
power, restrictive governmental laws or regulations, riot, insurrection, war or
other reason of like nature not the fault of the party delayed, then performance
of such act shall be excused for the period for performance and shall be
extended for period equivalent to the period of such delay.

     14.6 Notices. All notices and demands which may or are required to be given
          -------
by either party to the other hereunder shall be in writing and shall be deemed
to have been fully given 5 business days after being deposited in the United
States mail, certified or registered, postage prepaid, and addressed as follows:
to Lessee at the address specified in the following: One Lakeshore Drive, Suite
                                                     --------------------------
1495, Lake Charles, La, 70629 or to such other place as Lessee may from time to
-----------------------------
time designate in a notice to Lessor; to Lessor at the following address:
Property One, Inc., CM Tower, One Lakeshore Drive, Suite 120, Lake Charles, La,
-------------------------------------------------------------------------------
70629, or to such other place as Lessor may from time to time designate in a
-----
notice to Lessee; or, in the case of Lessee, delivered to Lessee at the
premises. Lessee hereby appoints as its agent to receive the service of all
dispossessory or distraint proceedings and notices thereunder the person in
charge of or occupying the premises at the time, and, if no person shall be in
charge of or occupying the same, then such service may be made by attaching the
same on the main entrance of the premises.

     14.7 Commencement Date. As of the date of signature of this Lease
          -----------------
Agreement, Lessor and Lessee acknowledge that the Leased Premises have not been
completed. Lessor and Lessee shall use their best efforts to accomplish the
completion of the Leased Premises in accordance with Attachment "E" hereof and
Lessor shall deliver possession thereof to Lessee on or about September 1, 1996.
                                                              -----------------
Lessee shall, if requested by Lessor, execute and deliver to Lessor a Receipt of
Notice of Substantial Completion of Construction of the Leased Premises, for the
purpose of defining the actual commencement and ending dates of this Lease,
attached hereto and made a part of this Lease Agreement as Attachment "F". The
date the Leased Premises have been substantially completed and delivered to
Lessee in accordance with Attachment "E" shall be the first day of the term
hereof and said Receipt of Notice, if requested by Lessor, shall bear such date,
and the rent herein imposed shall accrue from and after such date which is
hereby designated "Commencement Date". In the event the Commencement Date is a
date other than the first day of a calendar month, the term shall extend for a
like number of months following the commencement date.

     14.8 Substitution of Premises. Lessor reserves the right on thirty (30)
          ------------------------
days written notice to Lessee to substitute for the Leased Premises, at the same
rental as required of Lessee herein, including adjustment, other comparable
premises within the Building, or in the case of total destruction of the Leased
Premises, within another building, for all uses and purposes as though
originally leased to Lessee at the time of execution and delivery of this lease
and subject to all terms and provisions hereto. In the event Lessor elects to
cause such substitution of premises, Lessor agrees to pay all reasonable
expenses of Lessee incidental thereof.

                                      11

<PAGE>

                            XV. SPECIAL PROVISIONS

     An Addendum to Lease is attached hereto and made a part of this Lease.

     In Witness whereof, the parties hereto have executed this instrument in the
presence of the undersigned competent witnesses.

     Executed by Lessor at Lake Charles, Louisiana, this 30th day of April,
1996.

WITNESSES:                                   CALCASIEU MARINE NATIONAL BANK
                                             OF LAKE CHARLES

/s/ Malinda Kellogg                             BY: /s/ [ILLEGIBLE]
---------------------                               ---------------------------

/s/ Patricia S. Boyer                        TITLE: Sr. V.P.
---------------------                               ---------------------------

     Executed by Lessee at Lake Charles, Louisiana, this 29/th/ day of April,
1996.

WITNESSES:

/s/ [ILLEGIBLE]                                 BY: /s/ William L. Henning Jr.
-------------------                                 ---------------------------

/s/ Brenda McElveen                          TITLE: Chairman/CEO
-------------------                                 ---------------------------

                                      12
<PAGE>

                               ADDENDUM TO LEASE

THE ATTACHED LEASE made and entered into this __ day of ________, 1996, by and
between Calcasieu Marine National Bank, as "Lessor", and Mercury, Inc., as
                                                         -------------
"Lessee", of which Lease this Addendum to Lease is made a part, is hereby
amended and supplemented as follows:

                                  WITNESSETH

1.   The following is added to Section XV, Special Provisions as paragraph 15.1:
                                           ------------------
Anything in this Lease to the contrary notwithstanding, Lessor agrees to build
out Lessee's Leased premises at a cost not to exceed                       or
the actual cost, whichever is less, according to Attachment "C" (Building
Standards), Attachment "D" (Description of Improvements), and Attachment "E"
(Workletter). The above referenced allowance                     . Any and all
costs of leasehold improvements which exceed the above referenced allowance
shall be at Lessee's sole expense. Lessee shall have the right to approve
Lessor's construction drawings prior to the commencement of construction.

2.   The following is added to Section XV, Special Provisions as paragraph 15.2:
                                           ------------------
Lessee, upon paying the rent herein reserved and performing all the terms,
covenants and conditions herein contained on its part to be kept and performed
shall have a                                      . This First Right of Refusal
shall be effective upon lease execution and shall expire on August 31, 1999. Any
such expansion of the premises                                         Lessor
reserves the right to lease all or any part of this area to others, but agrees
to notify Lessee in writing whenever the area is proposed, and such other Lessee
has set forth in writing its intent to lease the area. Lessee agrees to notify
Lessor in writing within three (3) business days if Lessee wishes to exercise
this right. If Lessee fails to notify Lessor of its intent to accept the space
within three (3) business days, or Lessee rejects its preferential right, then
the First Right of Refusal shall terminate at this time on the space offered.
Should the prospective tenant fail to lease such space, the aforementioned
termination of First Right of Refusal shall be rescinded by Lessor. If Lessee
accepts its right to lease the space offered, then Lessee shall execute an
Amendment to Lease within thirty (30) days following its notification to Lessor
of acceptance of the offer.

3.   The following is added to Section XV, Special Provisions as paragraph 15.3:
                                           ------------------
The Lease for Suite 1495, Suite 1465, Suite 1220, Suite 1175, Suite 980, and 727
net rentable square feet of Suite 1590 will be terminated upon occupancy of the
20th, 19th and 7th floors by Lessee.

4.   The following is added to Section XV, Special Provisions as paragraph 15.4:
                                           ------------------
This lease shall be amended to reflect the exact square footages of the 20th and
7th floors when the exact layout has been determined.

5.   The following is added to Section XV, Special Provisions as paragraph 15.5:
                                           ------------------
Lessee, upon paying the rent herein reserved and performing all the terms,
covenants and conditions herein on its part to be kept and performed, shall have
an option to renew this Lease for additional term of five (5) years. Any such
                                                     ----
extension of this Lease for an additional term shall be upon the same covenants
and conditions as are set forth herein, except that Lessee shall have no option
to further extend this Lease. Lessee must notify Lessor in writing not less than
ninety (90) days nor more than one hundred twenty (120) days prior to the
expiration of this Lease of its election to exercise the above option and
agreement to be bound by the terms, covenants and conditions of the

                                      13
<PAGE>

Lease for the additional term stated above. In the event Lessee fails to so
notify Lessor or declines to exercise said Option to Renew, such right shall
terminate and no longer be in effect.

IN WITNESS WHEREOF, the parties hereto have executed this instrument in the
presence of the undersigned competent witnesses.

     Executed by Lessor at Lake Charles, Louisiana, this 30th day of April,
1996.

WITNESSES:                                   CALCASIEU MARINE NATIONAL BANK OF
                                             LAKE CHARLES
/s/ Malinda Kellogg                          BY: /s/ [ILLEGIBLE]
-----------------------------                   ------------------------------

/s/ Patricia S. Boyer                     TITLE: Sr. V.P.
-----------------------------                   ------------------------------

     Executed by Lessee at Lake Charles, Louisiana, this 29 day of April, 1996.

WITNESSES:                                   MERCURY, INC.

/s/ [ILLEGIBLE]                             BY: William L. Henning Jr.
-----------------------------                   ------------------------------

/s/ Brenda McElveen                       TITLE: Chairman/CEO
-----------------------------                   -------------------------------

                                      14
<PAGE>

                                ATTACHMENT "B"

                             RULES AND REGULATIONS

1.   The Building Management office should be contacted for all matters
     pertaining to the building.

2.   All furniture, fixtures, safes, heavy or bulky items, and other articles
     shall be moved in or out, or within the building by Lessee, only with the
     permission of and in such manner and at such times as may be approved or
     directed by the Building Management. Lessee shall be liable for any losses,
     damages or injuries to persons or property in so moving or handling the
     same.

3.   For your protection, authorization from the Building Management office is
     required before any furniture or equipment shall be permitted to leave the
     building.

4.   Lessor will provide and maintain a directory for all tenants in the
     building. No signs, advertisements, or notices visible to the general
     public shall be permitted within the building unless first approved in
     writing by Building Management. Any additions, deletions, or changes to the
     building directories should be furnished to the Building Management in
     writing on Lessee's letterhead duly signed.

5.   Lessee will refer all contractors, contractor's representatives and
     installation technicians rendering any service for Lessee to Building
     Management for supervision and/or approval before performance of any such
     contractual services. This shall apply to all work performed in the
     building, including, but not limited to, installation of telephones,
     telegraph equipment, electrical devices and attachments and installations
     of any and every nature affecting floors, walls, woodwork, trim, windows,
     ceiling, equipment or any other physical portion of the building. None of
     this work will be done by Lessee without Building Management prior written
     approval.

6.   The Building Manager, or his representative, shall have the right at all
     reasonable times to enter into and upon said premises to examine, inspect,
     repair or protect any or all things pertaining to said premises or building
     or appurtenances.

7.   The work of the building employees shall not be hindered by Lessee and such
     work may be done at any time when the offices are vacant. The windows,
     doors and fixtures may be cleaned at any time.

8.   Lessee, their clerks, employees and occupants of their leased premises
     shall not make or permit any improper or excessive noise in the building,
     use any musical instruments or do anything that will annoy, disturb or
     interfere in any way with other tenants or those having business with them.
     No dogs, cats, birds, other animals, bicycles, or other vehicles shall be
     allowed in the building. Lessee shall shut off all utilities and close and
     lock all doors when premises are left unattended.

9.   Lessee shall not place, install or operate on the demised premises or in
     any part of the building, any engine or machinery, or conduct mechanical
     operations, or place or use in or about the demised premises, any
     explosives, gasoline, kerosene, oil, acids, caustics or any other
     inflammable, explosive, or hazardous material without the prior written
     consent of Building Management.

                                      18
<PAGE>

10.  Lessor will not be responsible for any personal property, equipment,
     money, or jewelry lost or stolen from Lessee's area, or public rooms,
     regardless of whether such loss occurs when the area is locked against
     entry or not, except as otherwise provided in this Lease.

11.  No dust, rubbish or litter shall be swept from any room into any of the
     corridors or public spaces. The sidewalks, corridors, lobbies, elevators
     and/or stairways shall not be obstructed by Lessee, nor used by Lessee's
     employees for any other purpose than for ingress to and egress from the
     respective leased premises. All utilities and public facilities will remain
     the exclusive charge of Lessor and Lessee will commit no act which will be
     wasteful or harmful to utilities and public facilities. Call Building
     Management office for disposal of large items of trash. Except for coffee
     pots and microwave ovens, electric current shall not be used for cooking or
     heating without prior written permission from Building Management.

12.  Lessee shall provide and use adequate waste and rubbish receptacles,
     cabinets, bookcases, map-cases, etc., necessary to prevent unreasonable
     hardship to Lessor in discharging his obligations regarding cleaning
     service.

13.  No additional lock shall be placed upon any door without Building
     Management's prior written consent, and upon Lessee moving from the
     premises, any such lock with the keys belonging thereto shall be
     delivered to the Building Manager.

14.  Lessee will be supplied, free of charge, with two keys for each corridor
     door entering the Leased Premises, and additional keys will be furnished at
     a charge of $2.00 per key by Building Manager on an order signed by Lessee
     or Lessee's authorized representative. All such keys shall remain the
     property of Lessor. No additional locks shall be allowed on any door of
     Leased Premises, and Lessee shall not make, or permit to be made any
     duplicate keys, except those furnished by Lessor. Upon termination of this
     Lease, Lessee shall surrender to Lessor the explanation of the
     combination of all locks for safes, safe cabinets and vault doors, if any,
     in the Leased Premises.

15.  No nails or stickers shall be placed by tenants in or on the woodwork,
     partitions, or walls except in a manner approved or installed by the
     Building Management, and there shall be no nailing, boring, screwing or
     cutting into any woodwork, partitions or walls. Corridor doors when not in
     use shall be kept closed.

16.  Water closets and other water fixtures shall not be used for any purpose
     other than for which same are intended, and any damages resulting to same
     from misuse on the part of Lessee, or Lessee's agents or servants, shall
     be paid by the Lessee. No person shall waste water by interfering or
     tampering with the faucets or otherwise. No acids, slops, ashes, dirt or
     other rubbish shall be emptied into the water closets other than specially
     designed plumbing fixtures, nor shall any acids or other chemicals
     injurious to the plumbing, pipes or fixtures be permitted to enter the
     waste pipes.

17.  Lessor shall have the right to determine and prescribe the weight and
     proper position of any unusually heavy equipment including safes, large
     files, etc., that are to be placed in the building, and only those which in
     the opinion of Lessor might without reasonable probability do damage to
     the floors, structure and/or elevators may be moved into said building.

                                      19

<PAGE>

     Any damage, occasioned in connection with the moving or installing of such
     aforementioned articles in said building or the existence of same in said
     building shall be paid by Lessee.

18.  To insure orderly operation of the building, Building Management reserves
     the right to approve all concessionaires, vending machine operations, or
     other distribution of cold drinks, coffee, food, or other concessions,
     water, towels, or newspapers. Such approval shall not be unreasonably
     withheld.

19.  Tenant shall not solicit from or circulate advertising or other materials
     among other tenants in the building except by regular use of the U.S. mail.

20.  The existing north surface parking lot directly adjacent to the Building
     shall be for the exclusive use of building visitors, clients and guests.
     Tenants shall not park in north lot. Tenants shall park in the adjacent
     parking garage, or shall make arrangements to park in the Civic Center lot,
     or other off-site parking.

21.  Lessor desires to maintain high standards of environment, comfort and
     convenience for its Lessees. It will be appreciated if any undesirable
     conditions or lack of courtesy or attention by its employees is reported
     directly to Building Management.

                                      20

<PAGE>

                                ATTACHMENT "C"
                              BUILDING STANDARDS

Lessor agrees, at its sole cost and expense, to do the following ("Building
Standard Work") in the Leased Premises:

(a)  Supply and install Lessor's Building Standard partitions in an amount not
to exceed ten (10) linear feet for each one hundred (100) square feet of usable
area.

(b)  Supply and install Lessor's Building Standard interior doors, frames and
hardware (consisting of latchset, butts, and door stops) in an amount not to
exceed one for each three hundred (300) square feet of usable area.

(c)  Supply and install in quantity required by code Lessor's Building Standard
entrance/exit doors, frames and hardware (consisting of lockset, butts, door
stops, and door closer).

(d)  Supply and install Building Standard acoustical ceiling throughout.

(e)  Supply Lessor's Building Standard electrical facilities sufficient for a
connected load of 2.5 watts at 277/480 volts, three phase, and 1 watt at 208/120
volts, three phase, per square foot of usable area served; but not including
electricity required for duplicating and electronic data processing equipment,
special lighting in excess of building standard, and any other item of
electrical equipment which (singly) consumes more than 0.5 kilowatts at rated
capacity or requires a voltage other than 120 volts single phase.

(f)  Supply and install Lessor's Building Standard recessed fluorescent lighting
fixtures in an amount not to exceed one fixture for each eighty (80) square feet
of usable area in the Leased Premises; Building Standard duplex receptacle wall
outlets in an amount not to exceed one for each one hundred fifty (150) square
feet of usable area in the Leased Premises; Building Standard telephone wall
outlets in an amount not to exceed one for each one hundred seventy-five (175)
square feet of usable area in the Leased Premises; and Building Standard wall
switches not to exceed one for each three hundred (300) square feet of usable
area in the Leased Premises. Circuitry within the Leased Premises for other than
Building Standard items shall be at Tenant's expense.

(g)  Supply and install Lessor's Building Standard zoned air conditioning
systems with reasonable duct work, and thermostats in an amount not to exceed
one thermostat for each conditioning zone. Said system shall be designed to be
capable of maintaining, within tolerances normal in first class office buildings
and subject to density factors of not more than one person per one hundred fifty
(150) square feet of usable space nor more than 3.5 watts of electrical load per
square foot of each area served, inside space conditions of 75 degrees F. dry
bulb and 45% relative humidity when outside conditions are 98 degrees dry bulb
and 80 degrees wet bulb.

(h)  Supply and install Lessor's Building Standard carpet and Lessor's Building
Standard 1/8" vinyl tile floor covering in all uncarpeted areas.

(i)  Paint the peripheral walls and all Building Standard partitions in Lessor's
standard manner, colors to be selected by Lessee from Lessor's standard colors.

(j)  Supply and install Lessor's Building Standard window covering on all
perimeter windows.

                                      21
<PAGE>

                                ATTACHMENT "D"
                     DESCRIPTION OF CM TOWER IMPROVEMENTS

1).  Demising wall between tenant lease area: One layer 5/8 inch thick fire
     ---------------------------------------
     resistive gypsum drywall on each side of 2 1/2 inch, 25 gauge galvanized
     steel studs, full height from floor to underside of structure above; 1 1/2
     inch thick sound attenuation insulation nested between studs; exposed
     surfaces painted finish; concealed surface above ceiling line unfinished.
     (Fire Resistive Rating; one hour, Underwriters Laboratories Design with
     sound attenuation insulation added).

2).  Interior Partitions:  One layer 5/8 inch thick gypsum drywall on each side
     -------------------
     of 2 1/2 inch, 25 gauge galvanized steel studs, full height from floor to
     ceiling, painted finish two sides.

3).  Demising wall between Tenant Lease Area and Public Corridors: One layer 5/8
     ------------------------------------------------------------
     inch thick gypsum drywall on each side of 2 1/2 inch, 25 gauge galvanized
     steel studs, full height from floor to ceiling, painted finish on tenant
     lease side, vinyl wall covering on public corridor side.

4).  Doors: Flush solid core wood, 3'0" X 9'0" X 1 3/4" natural white oak face
     -----
     veneer. The amount shall not exceed 1 for every 300 square feet of lease
     premises.

5).  Hardware:
     --------

     Hinges McKinney: TA2731
     Lockset:  Corbin 77-851-26 Keyway 59C1
     Passage Set:  Corbin 77-810-26
     Door Closer:  North Series 8301

     Typical Interior Door Hardware

          1).  Three Hinges
          2).  One Passage Set
          3).  One floor or wall mounted door stop

     Typical Corridor Hardware

          1).  Three Hinges
          2).  One entrance function lockset
          3).  One surface mounted overhead closer
          4).  One floor or wall mounted door stop

6).  Standard Ceiling: 2'0" X 2'0" exposed grid metal suspension system with
     ----------------
     factory applied white baked enamel finish, nominal 2'0" X 2'0" X 3/4" lay-
     in acoustical ceiling panels with factory applied white vinyl latex
     finished surface.

7).  Lighting Fixtures: 2'0" X 4'0" recessed air handling, lay-in fixture; three
     -----------------
     277 volt, 40 watt fluorescent lamps per fixture.

8).  Duplex Convenience Outlet: 20A Hosp. Grade (Levington 8300W or Equal),
     -------------------------
     White as manufactured by G.E., Levition, Hubbell, A-H, P & S, Slater,
     Sierra or Bryant. The average length of conduit per outlet will be 20' of
     1/2" EMT with #12THHN solid copper wire, 600V. For dedicated circuits
     Levington 5262IG 20A Orange or Equal.

9).  Wall Switch: Touch plate @#50-2 white, low voltage, momentary contact
     -----------
     installed in a single gang metallic switch box. Install 1/2" EMT from
     switch box to accessible ceiling space only. Terminate EMT above ceiling
     with 1/2" EMT connector and 1/2" plastic bushing. Connect 50-2 switch to
     Touchplate relays (2) with #18 TFFN stranded copper wire, 600V.

                                      22
<PAGE>

10). Wall Telephone Outlet:  Single gang, 3/4" conduit switch box and 3/4 EMT
     ---------------------
     conduit from switch box to accessible ceiling space only. Terminate 3/4"
     above ceiling with 3/4" EMT connector and plastic bushing. Cable suitable
     for installation in environmental air space shall be furnished and
     installed by telephone company. White telephone plates and outlets shall be
     furnished and installed by telephone company.

11). Heating, Ventilation and Air Conditioning:  Continuous slot ceiling mounted
     -----------------------------------------
     supply air adjacent to building exterior curtain wall. Perforated metal
     grill for return air painted black. Return air diffusers. 2' X 2' white.
     Additional air-conditioning required due to tenant-supplied equipment is
     not included.

12). Door Frames; Headtracks:  Extruded aluminum knock-down type frame, factory
     -----------------------
     applied white painted finish.

     Frames & Headtrack (RACO)
     PR-1, 375, White 10' 7"
     PR-21, White 12' 0"
     PR-234F, 375, White, 3' 0" X 8' 10 1/2"
     PR-123F, 375, White, 3' 0" X 8' 10 1/2"

13). Window Coverings:  Bali Blinds #42 - matte white.
     ----------------

14). Vinyl Floor Covering:  Azrock Vinyl Composition Tile, 1/8" gauge.
     --------------------

15). Base:  Roppe 4 inch, selection of colors, 00, 10, 20, 30, 40, 50, 52, 62,
     ----
     70, 80, 87, 88, 89, 90, 91, 93, 95, 96, 97, 98, and 99.

16). Carpet:  Shaw-Sea Island.
     ------

17). Paint:  Pratt & Lambert or Coronado.
     -----

18). Fire Protection:  Lease area protected by fully automatic fire sprinkler
     ---------------
     system; hydraulically designed for ordinary hazard classification; chrome
     plated pendant heads with chrome plated escutcheons.

19). Conduit in Tenant Lease Space:  "BX" armor clad cable shall not be used.
     -----------------------------
     Where EMT conduit is used, it shall be joined by set screw type connectors
     and couplings as manufactured by Midwest, Steel City, EFCOR, RACO, ETP, T &
     B, Gedneg, Applet, or approved equal. Diecast type connectors and couplings
     will be acceptable provided they meet Underwriters Laboratories
     requirements.

20). Speaker Horns:  Alarm signal and voice communication horns shall be UL
     -------------
     listed wall mounted flush type re-entrant type horns housed in diecast
     aluminum frames and grills with finish. They shall be constructed for safe
     use and without impairing the quality of tone or voice reproduction in
     climates ranging from - 30 degrees F to 150 degrees F. The horn
     diaphragm shall be constructed of poly-flared, folded, re-entrant type
     horn and shall protect the horn mechanism from malicious attack. Provide
     one alarm signal and voice communication horn in lease areas exceeding
     1,000 square feet of usable space.

                                      23
<PAGE>

                      FIRST AMENDMENT TO LEASE AGREEMENT
                                 MERCURY, INC.

STATE OF LOUISIANA
PARISH OF CALCASIEU

     This First Amendment to Lease Agreement is entered into between Calcasieu
Marine National Bank of Lake Charles ("Lessor"), whose mailing address is P.O.
Box 3402, Lake Charles, Louisiana 70602 and Mercury, Inc. ("Lessee"), whose
mailing address is One Lakeshore Drive, Suite 1495, Lake Charles, Louisiana
70629.

                                  WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30, 1996 by
Lessor, Lessor let unto Lessee certain premises ("Leased Premises") comprised of
37,949 net rentable square feet (35,148 usable) of the 20th, 19th, 15th, 14th,
7th and 1st floors and,

WHEREAS, Lessor and Lessee desire to amend the Lease to provide temporary space
in the Building as an accommodation to Lessee until the construction of the
permanent space is completed by the parties hereto;

NOW THEREFORE, in order to effectuate the intent of the parties as hereabove set
forth and for good and valuable consideration exchanged between the parties,
effective May 18, 1996, the Lease is hereby amended to include the following
terms and conditions:

1)   Beginning on May 18, 1996 and ending on August 31, 1996, Lessee shall be
entitled to occupy Suite 1200 consisting of 3,065 net rentable square feet
(2,665 usable) (the "Temporary Space").

2)   As Base Rental for Suite 1200, (the "Temporary Space") Lessee shall pay
Lessor without deduction, abatement or setoff, the sum of Two thousand eight
                                                          ------------------
hundred twenty-two dollars and thirty five cents ($2,822.35) on or before the
------------------------------------------------
first day of each calendar month beginning June 1, 1996. Base Rental for May,
1996, is prorated as follows:

          $2,822.35 divided by 30 X 14 = $1,317.00

3)   If construction of the permanent space is not completed by September 1,
1996, the lease for the temporary space shall extend on a month-to-month basis
until occupancy of the permanent space has occurred.

This First Amendment to Lease shall be governed by the same terms and conditions
of the original Lease Agreement. All other terms and conditions of this Lease
shall remain in full force and effect as heretofore.

IN WITNESS WHEREOF, this First Amendment to Lease is executed by Lessor at Lake
Charles, Louisiana this 3rd day of June, 1996.

WITNESSES:                              CALCASIEU MARINE NATIONAL BANK
                                        OF LAKE CHARLES

/s/ Malinda Kellogg                     BY: /s/ [ILLEGIBLE]
-----------------------------              -----------------------------
/s/ Dawn Alexander                   TITLE: Sr V.P.
-----------------------------              -----------------------------

In WITNESS WHEREOF, this First Amendment to Lease is executed by Lessee at Lake
Charles, Louisiana this 3rd day of June, 1996.

WITNESSES:                              MERCURY, INC.

/s/ Carolyn Nunez                       BY: /s/ Brenda S. McElveen
-----------------------------              -----------------------------
/s/ James Stuart Hamilton            TITLE: VP of Operations
-----------------------------              -----------------------------

<PAGE>

                      SECOND AMENDMENT TO LEASE AGREEMENT
                                 MERCURY, INC.

STATE OF LOUISIANA
PARISH OF CALCASIEU

This Second Amendment to Lease by and between Hibernia National Bank, Successor
by merger to Calcasieu Marine National Bank of Lake Charles, whose mailing
addresses are c/o Property One, Inc., One Lakeshore Drive, Suite 120, Lake
Charles, Louisiana 70629 and Hibernia National Bank, attention Administrative
Services, P.O. Box 61540, New Orleans, Louisiana 70161 (hereinafter referred to
as "Lessor") and Mercury, Inc. ("Lessee") whose mailing address is One Lakeshore
Drive, Suite 1495, Lake Charles, Louisiana 70629.

                               WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30 by
Lessor, Lessor let unto Lessee certain premises ("Leased Premises") in the
building known as Hibernia Tower comprised of 37,949 net rentable square feet
(35,148 usable) of the 20th, 19th, 15th, 14th, 7th, and 1st floors and,

WHEREAS, Lessor and Lessee desire to amend the Lease to set forth the facts and
agreements pertaining to the hereabove stated intents;

NOW THEREFORE, in order to effectuate the intent of the parties as hereabove
set forth and for good and valuable consideration exchanged between the parties,
effective November 15, 1996 the Lease is hereby amended to incorporated the
          -----------
following:

1)   Section I., 1.1, Leased Premises - Upon occupancy of the Leased Premises,
                      ---------------
Lessee's mailing address shall be changed to One Lakeshore Drive, Suite 1900,
Lake Charles, Louisiana, 70629. The Leased Premises are outlined on the floor
plans made a part hereof as Attachments "A-1 - A-6".

2)   Section I., 1.2 - For purposes of this Lease, the net rentable area of the
Leased Premises is changed to 41,279 square feet (40,947 usable square feet),
                              ------
comprised of the following suites:

     a.  Existing Leased Premises
         ------------------------

           Suite 1590                  1,305 RSF (1,135 USF)
           15 Equip. Room                230 RSF (  200 USF)
           Suite 1470                    503 RSF (  437 USF)
           Suite 135                     505 RSF (  439 USF)
                                         -------------------
           Total                       2,543 RSF (2,211 USF)

     B.  New Leased Premises
         -------------------

           Suite 2000                 10,089 RSF (10,089 USF)
           Suite 1900                 16,482 RSF (16,482 USF)
           Suite  700                 12,165 RSF (12,165 USF)
                                      -----------------------
           Total                      38,736 RSF (38,736 USF)

3)   Section II, Term, 2.1 - The Term of this Lease will be 60 months,
commencing November 15, 1996 and expiring November 14, 2001.

4)   Section III., 3.1 - Base Rental for the Leased Premises is changed
to Thirty eight thousand eleven dollars and eight cents ($38,011.08) per month,
   ----------------------------------------------------
payable on or before the first day of each calendar month of the lease term. If
the Lease does not commence on the first day of a calendar month, the monthly
installment of Base Rental will be prorated.

<PAGE>

5)   Section VI, 6.1 Parking shall be changed as follows: Lessee's free parking
                     -------
shall increase to forty-one (41) car/s in accordance with the parking ratio of
one free space per 1,000 square feet of Net Rentable Area leased with one per
750 square feet guaranteed in Lessor's adjacent parking garage.

6)   The Addendum to Lease, paragraph 1 shall be changed as follows: Lessor
agrees to build out Lessee's Leased Premises at a cost not to exceed
$803,580.00, or the actual cost, whichever is less, calculated as shown below:
-----------

          Suite 2000         10,089 RSF at $25/RSF = $252,225.00
          Suite 1900         16,482 RSF at $15/RSF = $247,230.00
          Suite  700         12,165 RSF at $25/RSF = $304,125.00
                             ------                  -----------
          Total              38,622 RSF              $803,580.00

7)   The Addendum to Lease, paragraph 3 shall be changed as follows: The Lease
for Suites 1495, 1485, 1465, 1220, 1200, 1175, and 980 will be terminated upon
occupancy of the 20th, 19th and 7th floors by Lessee.

IN WITNESS WHEREOF, the parties hereto have executed this instrument in the
presence of the undersigned competent witnesses.

Executed by Lessor at New Orleans, Louisiana this 2nd day of December, 1996.

WITNESSES:                              HIBERNIA NATIONAL BANK

/s/ [ILLEGIBLE]                         BY:  /s/ Edward R. DeLatte
------------------------------              --------------------------

/s/ Diana Falgaut                    TITLE:  Vice President
------------------------------               -------------------------

Executed by Lessee at Lake Charles, Louisiana this 25 day of November, 1996.

WITNESSES:                              MERCURY, INC.

/s/ Sheila K. King                      BY: /s/ William L. Henning Jr.
------------------------------             ---------------------------

/s/ Amy Durkin                       TITLE: Chairman/CEO
------------------------------              --------------------------

<PAGE>

                             TERMINATION OF LEASE

THIS TERMINATION OF LEASE, made and entered into this 2nd day of December, 1996,
by and between Hibernia National Bank, Successor by merger to Calcasieu Marine
National Bank of Lake Charles ("Lessor") and Mercury, Inc., ("Lessee").

                                  WITNESSETH:

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30, 1996 by
Lessor, and as amended by the First Amendment to Lease dated June 3, 1996 by
Lessor and Lessee, Lessor leased unto Lessee those certain premises listed
below, and

WHEREAS, Lessor and Lessee wish to terminate the Lease for these Suites;

NOW THEREFORE, in consideration of these present and the agreements of each
other, Lessor and Lessee hereby agree that the Lease Agreement for the following
Suites shall terminate effective November 15, 1996.

          Suite 1495 -   9,636 RSF
          Suite 1485 -     667 RSF
          Suite 1465 -     334 RSF
          Suite 1220 -   3,499 RSF
          Suite 1200 -   3,065 RSF
          Suite 1175 -     803 RSF
          Suite  980 -   2,875 RSF
                        ----------
          Total -       20,879 RSF

IN WITNESS WHEREOF, Lessor and Lessee have executed this instrument by proper
persons thereunto duly authorized so to do the day and year hereinabove written.

Executed by Lessor at New Orleans, Louisiana this 2nd day of December, 1996.

WITNESSES:                         HIBERNIA NATIONAL BANK

/s/ [ILLEGIBLE]                    BY: /s/ Edward R. DeLatte
--------------------                  --------------------------
/s/ Diana Falgaut                  TITLE: Vice President
--------------------                      ----------------------

Executed by Lessee at Lake Charles, Louisiana this 25 day of November, 1996.

WITNESSES:                         MERCURY, INC.

/s/ Sheila K. King                 BY: /s/ Brenda S. McElveen
--------------------                  --------------------------
/s/ Amy Durkin                     TITLE: V/P of Operations
--------------------                     -----------------------

<PAGE>

                      THIRD AMENDMENT TO LEASE AGREEMENT
                              EXPANSION AGREEMENT
                                 MERCURY, INC.

STATE OF LOUISIANA
PARISH OF CALCASIEU

This Third Amendment to Lease by and between Hibernia National Bank, Successor
by merger to Calcasieu Marine National Bank of Lake Charles, whose mailing
addresses are c/o Property One, Inc., One Lakeshore Drive, Suite 120, Lake
Charles, Louisiana 70629 and Hibernia National Bank, attention Administrative
Services, P.O. Box 61540, New Orleans, Louisiana 70161 (hereinafter referred to
as "Lessor") and Mercury, Inc. ("Lessee") whose mailing address is One Lakeshore
Drive, Suite 1900, Lake Charles, Louisiana 70629.

                                  WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30 by
Lessor, in which Lessor agreed to lease to Lessee and Lessee agreed to lease
approximately 37,949 net rentable square feet (35,148 usable square feet) on the
20th, 19th, 15th, 14th, 7th and 1st floors (the "Premises") of Hibernia Tower
(formerly the CM Tower) (the "Building"), and,

WHEREAS, Lessor and Lessee entered into a First Amendment to Lease Agreement
dated June 3, 1996 by Lessor and Lessee which granted Lessee the right to use
Suite 1200 on a temporary basis until the construction of the permanent Leased
Premises was completed, and

WHEREAS, Lessor and Lessee entered into a Second Amendment to Lease Agreement
dated November 25, 1996 by Lessee and December 2, 1996 by Lessor, which
established the square footage of the newly constructed Leased Premises as
41,279 net rentable square feet (40,947 usable square feet) and the term of the
Lease as 60 months commencing November 15, 1996 and expiring November 14, 2001
at a Base monthly rental of $38,001.08, and

WHEREAS, Lessor and Lessee hereby agree to modify the Lease in accordance with
the terms expressed in this Third Amendment to Lease;

NOW THEREFORE, Lessor and Lessee hereby agree as follows:

1)   Section I., 1.2, Leased Premises - The net rentable area of the Leased
                      ---------------
Premises is increased to 51,582 net rentable square feet (49,906 usable) due to
the addition of Suite 1495, which consists of 10,303 net rentable square feet
(8,959 usable), as outlined on the floor plan attached hereto and made a part of
this Third Amendment to Lease Agreement as Attachment "A7". This Expansion Area
includes a common area factor of 15%. The new Leased Premises is comprised of
the following suites:

     Suite 2000          10,089 RSF (10,089 USF)
     Suite 1900          16,482 RSF (16,482 USF)
     Suite 1590           1,305 RSF ( 1,135 USF)
     15 Equip.Room          230 RSF (   200 USF)
     Suite 1470             503 RSF (   437 USF)
     Suite 1495          10,303 RSF ( 8,959 USF)
     Suite  700          12,165 RSF (12,165 USF)
     Suite  135             505 RSF (   439 USF)
                         -----------------------
     Total               51,582 RSF (49,906 USF)

<PAGE>

2)   Section II., 2.1, Term - The term of this Expansion Area will be 56 months,
                       ----
commencing on March 15, 1997 and expiring co-terminus with the existing Lease
Agreement on November 14, 2001.

3)   Section III, 3.1, Rent - Base monthly rental for the entire Leased
                        ----
Premises shall be Forty seven thousand four hundred ninety eight dollars and
                  ----------------------------------------------------------
forty three cents ($47,498.43), payable on or before the first day of each
-----------------
calendar month of the lease term. If the term of the Expansion Area does not
commence on the first day of a calendar month, the monthly installment of Base
rental for the Expansion Area will be prorated.

4)   Section VI., 6.1, Parking - Lessee's free parking shall increase to fifty
                       -------
two (52) cars in accordance with the parking ratio of one free space per 1,000
square feet of Net Rentable Area leased with one per 750 square feet guaranteed
in Lessor's adjacent parking garage.

5)   The following is added to Section XV, Special Provisions as paragraph 15.6:
                                           ------------------
Anything in this Lease to the contrary notwithstanding, Lessor agrees to
renovate Lessee's Expansion Area at a cost not to exceed Fifty thousand dollars
($50,000.00) or the actual cost, whichever is less, according to architectural
drawings provided for and approved by Lessee. The above referenced amount shall
include architectural fees. Any and all costs of leasehold improvements which
exceed the above referenced allowance shall be at Lessee's sole expense.

This Third Amendment to Lease shall be governed by the same terms and conditions
of the original Lease Agreement as amended. All other terms, covenants and
conditions of this Lease, as amended, remain in full force and effect as
heretofore.

IN WITNESS WHEREOF, this Third Amendment to Lease is executed by Lessor at New
Orleans, Louisiana this 7th day of March, 1997.

WITNESSES:                              HIBERNIA NATIONAL BANK

/s/ Gloria J. Kirk                      BY: /s/ Edward R. DeLatte
----------------------                      -------------------------
/s/ Cheryl Morris                    TITLE: Vice President
----------------------                      -------------------------

IN WITNESS WHEREOF, this Third Amendment to Lease is executed by Lessee at Lake
Charles, Louisiana this 4th day of March, 1997.

WITNESSES:                              MERCURY, INC.

/s/ Amy M. Durkin                       BY: /s/ Brenda S. McElveen
----------------------                      -------------------------
/s/ Malinda Kellogg                  TITLE: VP of Administration
----------------------                      -------------------------

<PAGE>

                      FOURTH AMENDMENT TO LEASE AGREEMENT
                                 MERCURY, INC.

STATE OF LOUISIANA
PARISH OF CALCASIEU

This Fourth Amendment to Lease by and between Hibernia National Bank, Successor
by merger to Calcasieu Marine National Bank of Lake Charles, whose mailing
addresses are c/o Property One, Inc., One Lakeshore Drive, Suite 120, Lake
Charles, Louisiana 70629 and Hibernia National Bank, attention Administrative
Services, P.O. Box 61540, New Orleans, Louisiana 70161 (hereinafter referred to
as "Lessor") and Mercury, Inc. ("Lessee") whose mailing address is One Lakeshore
Drive, Suite 1900, Lake Charles, Louisiana 70629.

                                  WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30, 1996 by
Lessor, in which Lessor agreed to lease to Lessee and Lessee agreed to lease
approximately 37,949 net rentable square feet (35,148 usable square feet) on the
20th, 19th, 15th, 14th, 7th and 1st floors (the "Premises") of Hibernia Tower
(formerly the CM Tower) (the "Building"), and,

WHEREAS, Lessor and Lessee entered into a First Amendment to Lease Agreement
dated June 3, 1996 by Lessor and Lessee which granted Lessee the right to use
Suite 1200 on a temporary basis until the construction of the permanent Leased
Premises was completed, and

WHEREAS, Lessor and Lessee entered into a Second Amendment to Lease Agreement
dated November 25, 1996 by Lessee and December 2, 1996 by Lessor, which
established the square footage of the newly constructed Leased Premises as
41,279 net rentable square feet (40,947 usable square feet) and the term of the
Lease as 60 months commencing November 15, 1996 and expiring November 14, 2001
at a base monthly rental of $38,001.08, and

WHEREAS, Lessor and Lessee entered into a Third Amendment to Lease Agreement
dated March 4, 1997 by Lessee and March 7, 1997 by Lessor, which expanded the
Leased Premises to 51,585 net rentable square feet (49,906 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $47,498.43, and

WHEREAS, Lessor and Lessee hereby agree to modify the Lease in accordance with
the terms expressed in this Fourth Amendment to Lease;

NOW THEREFORE, Lessor and Lessee hereby agree as follows:

1)   Section I. 1.2, Leased Premises - The net rentable area of the Leased
                     ---------------
Premises is decreased to 50,855 net rentable square feet (49,274 usable) due to
the reduction of Suite 1590 from 1,305 net rentable square feet (1,135 usable)
to 578 net rentable square feet (503 usable), as outlined on the floor plan
attached hereto and made a part of this Fourth Amendment to Lease Agreement as
Attachment "A-8". This reduction returns Suite 1590 to the size agreed upon in
the original Lease Agreement.

2)   Section II., 2.1, Term - The effective date of the reduction to the Leased
                       ----
Premises shall be March 15, 1997.
<PAGE>

3)   Section III, 3.1, Rent - Base monthly rental for the entire Leased Premises
                       ----
shall be Forty six thousand eight hundred twenty eight dollars and ninety eight
         ----------------------------------------------------------------------
cents ($46,828.98), payable on or before the first day of each calendar month of
-----
the lease term. The monthly installment of base rental for March will be
prorated.

4)   Section VI., 6.1, Parking - Lessee's free parking shall decrease to fifty
                       -------
one (51) cars in accordance with the parking ratio of one free space per 1,000
square feet of Net Rentable Area leased with one per 750 square feet guaranteed
in Lessor's adjacent parking garage.

This Fourth Amendment to Lease shall be governed by the same terms and
conditions of the original Lease Agreement as amended. All other terms,
covenants and conditions of this Lease, as amended, remain in full force and
effect as heretofore.

IN WITNESS WHEREOF, this Fourth Amendment to Lease is executed by Lessor at New
Orleans, Louisiana this 18th day of March, 1997.

WITNESSES:                                     HIBERNIA NATIONAL BANK

/s/ [ILLEGIBLE]                                BY: /s/ Edward R. DeLatte
-----------------------                           ---------------------------

/s/ Patricia S. Boyer                       TITLE: Vice President
-----------------------                           ---------------------------

IN WITNESS WHEREOF, this Fourth Amendment to Lease is executed by Lessee at Lake
Charles, Louisiana this 14 day of March, 1997.

WITNESSES:                                     MERCURY, INC.

/s/ Amy Durkin                                 BY: /s/ Brenda S. McElveen
-----------------------                            --------------------------

/s/ Sheila K. King                          TITLE: V/P of Administration
-----------------------                            --------------------------

<PAGE>

                      FIFTH AMENDMENT TO LEASE AGREEMENT
                                 MERCURY, INC.

STATE OF LOUISIANA
PARISH OF CALCASIEU

This Fifth Amendment to Lease by and between Hibernia National Bank, Successor
by merger to Calcasieu Marine National Bank of Lake Charles, whose mailing
addresses are c/o Property One, Inc., One Lakeshore Drive, Suite 560, Lake
Charles, Louisiana 70629 and Hibernia National Bank, attention Administrative
Services, P.O. Box 61540, New Orleans, Louisiana 70161 (hereinafter referred to
as "Lessor") and Mercury, Inc. ("Lessee") whose mailing address is One Lakeshore
Drive, Suite 1900, Lake Charles, Louisiana 70629.

                                  WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30, 1996 by
Lessor, in which Lessor agreed to lease to Lessee and Lessee agreed to lease
approximately 37,949 net rentable square feet (35,148 usable square feet) on the
20th, 19th, 15th, 14th, 7th and 1st floors (the "Premises") of Hibernia Tower
(formerly the CM Tower) (the "Building"), and,

WHEREAS, Lessor and Lessee entered into a First Amendment to Lease Agreement
dated June 3, 1996 by Lessor and Lessee which granted Lessee the right to use
Suite 1200 on a temporary basis until the construction of the permanent Lease
Premises was completed, and

WHEREAS, Lessor and Lessee entered into a Second Amendment to Lease Agreement
dated November 25, 1996 by Lessee and December 2, 1996 by Lessor, which
established the square footage of the newly constructed Lease Premises as 41,279
net rentable square feet (40,947 usable square feet) and the term of the Lease
as 60 months commencing November 15, 1996 and expiring November 14, 2001 at a
base monthly rental of $38,001.08, and

WHEREAS, Lessor and Lessee entered into a Third Amendment to Lease Agreement
dated March 4, 1997 by Lessee and March 7, 1997 by Lessor, which expanded the
Leased Premises to 51,585 net rentable square feet (49,906 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $47,498.43, and

WHEREAS, Lessor and Lessee entered into a Fourth Amendment to Lease Agreement
dated March 14, 1997 by Lessee and March 18, 1997 by Lessor, which reduced the
Leased Premises to 50,855 net rentable square feet (49,274 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $46,828.98 with Lessee's free parking ratio decreased to 51 vehicles,
and

WHEREAS, Lessor and Lessee entered into a six-month Option To Reduce Leased
Premises dated December 15, 1997 by Lessor and Lessee, in which Lessee was
granted a one time option to reduce the Leased Premises by a total of up to
30,000 square feet to relocate Lessee's operations to the Pujo Property, and

WHEREAS, Lessor and Lessee hereby agree to modify the Lease in accordance with
the terms expressed in this Fifth Amendment to Lease;

NOW THEREFORE, Lessor and Lessee hereby agree as follows:

1)   Section I., 1.2, Leased Premises - The net rentable area of the Leased
                      ---------------
Premises is increased to 56,653 net rentable square feet (55,072 usable) due to
the addition of the remaining 5798 net rentable square feet (5798 usable) on the
20th floor to the existing Leased Premises, as outlined on the floor plan
attached hereto and made a part of this Fifth Amendment to Lease Agreement as
Attachment "A-9".

2)   Section II., 2.1, Term - The term of this Expansion area will commence on
                       ----
June 15, 1998 or upon substantial completion of construction and will expire
co-terminus with the existing Lease Agreement on November 14, 2001.

3)   Section III., 3.1, Rent - Base monthly rental for the entire Leased
                        ----
Premises shall be Fifty-two thousand one hundred sixty-seven dollars and
                  ------------------------------------------------------
ninety-seven cents ($52,167.97), payable on or before the first day of each
-------------------------------
calendar month of the lease term. The monthly installment of base rental shall
be prorated based upon the actual date of substantial completion of the
expansion area.

4)   Section VI., 6.1, Parking - Lessee's free parking shall increase to
                       -------
fifty-six (56) cars in accordance with the parking ratio of one free space per
1,000 square feet of Net Rentable Area leased with one per 750 square feet
guaranteed in Lessor's adjacent parking garage.

<PAGE>

5)   The following is added to Section XV, Special Provisions as paragraph 15.7:
                                           ------------------
Anything in this Lease to the contrary notwithstanding, Lessor agrees to build
out the expansion area and other space within the existing Leased Premises on
the 7th and 19th floors at a cost not to exceed One hundred nine thousand six
                                                -----------------------------
hundred forty-two dollars ($109,642.00) or the actual cost, whichever is less,
---------------------------------------
according to architectural drawings provided for and approved by Lessee. The
above referenced amount shall include architectural fees. Any and all costs of
leasehold improvements which exceed the above referenced allowance shall be at
Lessee's sole expense.

6)   The following is added to Section XV, Special Provisions as paragraph 15.8:
                                           ------------------
None of the expansion area on the 20th floor, as outlined on Attachment "A-9",
may be included in the amount of Leased Premises that may be surrendered under
the terms of the Option to Reduce Leased Premises dated December 15, 1997 by
Lessor and Lessee.

This Fifth Amendment to Lease shall be governed by the same terms and conditions
of the original Lease Agreement as amended. All other terms, covenants and
conditions of this Lease, as amended, remain in full force and effect as
heretofore.

IN WITNESS WHEREOF, this Fifth Amendment to Lease is executed by Lessor at New
Orleans, Louisiana this 19th day of May, 1998.

WITNESSES:                                   HIBERNIA NATIONAL BANK

/s/ Gloria J. Kirk                           BY: /s/ Edward R. De Latte
------------------------------                  ----------------------------

/s/ Renee Mansfield                       TITLE: Senior Vice President
------------------------------                  ----------------------------

IN WITNESS WHEREOF, this Fifth Amendment to lease is executed by Lessee at Lake
Charles, Louisiana this 13 day of May, 1998.

WITNESSES:                                   MERCURY , INC.

/s/ Charlane Laselle                         BY: /s/ Brenda McElveen
------------------------------                  ----------------------------

/s/ Amy M. Durkin                         TITLE: V/P Administration
------------------------------                  ----------------------------

<PAGE>

                      SIXTH AMENDMENT TO LEASE AGREEMENT
                                 MERCURY, INC.

STATE OF LOUISIANA
PARISH OF CALCASIEU

This Sixth Amendment to Lease by and between Hibernia National Bank, Successor
by merger to Calcasieu Marine National Bank of Lake Charles, whose mailing
addresses are c/o Property One, Inc., One Lakeshore Drive, Suite 560, Lake
Charles, Louisiana 70629 and Hibernia National Bank, attention Administrative
Services, P.O. Box 61540, New Orleans, Louisiana 70161 (hereinafter referred to
as "Lessor") and Mercury, Inc. ("Lessee") whose mailing address is One Lakeshore
Drive, Suite 1900, Lake Charles, Louisiana 70629.

                                  WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30, 1996 by
Lessor, in which Lessor agreed to lease to Lessee and Lessee agreed to lease
approximately 37,949 net rentable square feet (35,148 usable square feet) on the
20th, 19th, 15th 14th, 7th and 1st floors (the "Premises") of Hibernia Tower
(formerly the CM Tower) (the "Building"), and,

WHEREAS, Lessor and Lessee entered into a First Amendment to Lease Agreement
dated June 3, 1996 by Lessor and Lessee which granted Lessee the right to use
Suite 1200 on a temporary basis until the construction of the permanent Lease
Premises was completed, and

WHEREAS, Lessor and Lessee entered into a Second Amendment to Lease Agreement
dated November 25, 1996 by Lessee and December 2, 1996 by Lessor, which
established the square footage of the newly constructed Lease Premises at 41,279
net rentable square feet (40,947 usable square feet) and the term of the Lease
as 60 months commencing November 15, 1996 and expiring November 14, 2001 at a
base monthly rental of $38,001.08, and

WHEREAS, Lessor and Lessee entered into a Third Amendment to Lease Agreement
dated March 4, 1997 by Lessee and March 7, 1997 by Lessor, which expanded the
Leased Premises to 51,585 net rentable square feet (49,906 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $47,498.43, and

WHEREAS, Lessor and Lessee entered into a Fourth Amendment to Lease Agreement
dated March 14, 1997 by Lessee and March 18, 1997 by Lessor, which reduced the
Leased Premises to 50,855 net rentable square feet (49,274 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $46,828.98 with Lessee's free parking ratio decreased to 51 vehicles,
and

WHEREAS, Lessor and Lessee entered into a six-month Option To Reduce Leased
Premises dated December 15, 1997 by Lessor and Lessee, in which Lessee was
granted a one-time option to reduce the Leased Premises by a total of up to
30,000 square feet to relocate Lessee's operations to the Pujo Property, and

WHEREAS, Lessor and Lessee entered into a Fifth Amendment to Lease Agreement
dated March 13, 1998 by Lessee and March 19, 1998 by Lessor, which increased the
Leased Premises to 56,653 net rentable square feet (55,072 usable square feet)
commencing June 15, 1998 and expiring November 14, 2001 at a base monthly rental
of $52,167.97 with Lessee's free parking ratio increased to 58 vehicles, and

WHEREAS, Lessor and Lessee hereby agree to modify the Lease in accordance with
the terms expressed in this Sixth Amendment to Lease;

NOW THEREFORE, Lessor and Lessee hereby agree as follows:

1)   Section I., 1.2, Leased Premises - The net rentable area of the Leased
                      ---------------
Premises is decreased to 56,075 net rentable square feet (54,569 usable) due to
the removal of Suite 1590 (578 net rentable square feet) from the Leased
Premises, as outlined on the floor plan attached hereto and made a part of this
Sixth Amendment to Lease Agreement as Attachment "A-10".

2)   Section II., 2.1, Term - The effective date of the reduction to the Leased
                       ----
Premises shall be March 1, 1999.

3)   Section III, 3.1, Rent - Base monthly rental for the entire Leased
                       ----
Premises shall be Fifty-one thousand six hundred thirty-five dollars and
                  ------------------------------------------------------
seventy-three cents ($51,635.73), payable on or before the first day of each
--------------------------------
calendar month of the lease term. The monthly installment of base rental shall
be prorated based upon the actual move-out date.
<PAGE>

4)   Section VI., 6.1, Parking - Lessee's free parking shall remain at fifty-six
                       -------
(56) cars in accordance with the parking ratio of one free space per 1,000
square feet of Net Rentable Area leased with one per 750 square feet guaranteed
in Lessor's adjacent parking garage.

This Sixth Amendment to Lease shall be governed by the same terms and conditions
of the original Lease Agreement as amended.  All other terms, covenants and
conditions of this Lease, as amended, remain in full force and effect as
heretofore.

IN WITNESS WHEREOF, this Sixth Amendment to Lease is executed by Lessor at New
Orleans, Louisiana this 17th day of February, 1999.

WITNESSES:                                   HIBERNIA NATIONAL BANK

/s/ Gloria J. Kirk                           BY: /s/ Edward R. DeLatte
------------------------------                  --------------------------

/s/ Dayna G. Barrios                         TITLE: SVP
------------------------------                     -----------------------

IN WITNESS WHEREOF, this Sixth Amendment to Lease is executed by Lessee at Lake
Charles, Louisiana this 12 day of February, 1999.

WITNESSES:                                   MERCURY, INC.

/s/ Carolyn Nunez                            BY: /s/ Brenda McElveen
------------------------------                  --------------------------

/s/ Amy Durkin                               TITLE: V/P Administration
------------------------------                     -----------------------

<PAGE>

                     SEVENTH AMENDMENT TO LEASE AGREEMENT
                                 U.S. UNWIRED

STATE OF LOUISIANA
PARISH OF CALCASIEU

This Seventh Amendment to Lease by and between Hibernia National Bank, Successor
by merger to Calcasieu Marine National Bank of Lake Charles, whose mailing
addresses are c/o Property One, Inc., One Lakeshore Drive, Suite 560, Lake
Charles, Louisiana 70629 and Hibernia National Bank, attention Administrative
Services, P.O. Box 61540, New Orleans, Louisiana 70161 (hereinafter referred to
as "Lessor") and U.S. Unwired, (formerly Mercury, Inc., "Lessee") whose mailing
address is One Lakeshore Drive, Suite 1900, Lake Charles, Louisiana 70629.

                                  WITNESSETH

WHEREAS, by Lease Agreement dated April 29, 1996 by Lessee and April 30, 1996 by
Lessor, in which Lessor agreed to lease to Lessee and Lessee agreed to lease
approximately 37,949 net rentable square feet (35,148 usable square feet) on the
20th, 19th, 15th, 14th, 7th and 1st floors (the "Premises") of Hibernia Tower
(formerly the CM Tower) (the "Building"), and,

WHEREAS, Lessor and Lessee entered into a First Amendment to Lease Agreement
dated June 3, 1996 by Lessor and Lessee which granted Lessee the right to use
Suite 1200 on a temporary basis until the construction of the permanent Lease
Premises was completed, and

WHEREAS, Lessor and Lessee entered into a Second Amendment to Lease Agreement
dated November 25, 1996 by Lessee and December 2, 1996 by Lessor, which
established the square footage of the newly constructed Lease Premises as 41,279
net rentable square feet (40,947 usable square feet) and the term of the Lease
as 60 months commencing November 15, 1996 and expiring November 14, 2001 at a
base monthly rental of $38,001.08, and

WHEREAS, Lessor and Lessee entered into a Third Amendment to Lease Agreement
dated March 4, 1997 by Lessee and March 7, 1997 by Lessor, which expanded the
Leased Premises to 51,585 net rentable square feet (49,906 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $47,498.43, and

WHEREAS, Lessor and Lessee entered into a Fourth Amendment to Lease Agreement
dated March 14, 1997 by Lessee and March 18, 1997 by Lessor, which reduced the
Leased Premises to 50,855 net rentable square feet (49,274 usable square feet)
commencing March 15, 1997 and expiring November 14, 2001 at a base monthly
rental of $46,828.98 with Lessee's free parking ratio decreased to 51 vehicles,
and

WHEREAS, Lessor and Lessee entered into a six-month Option To Reduce Leased
Premises dated December 15, 1997 by Lessor and Lessee, in which Lessee was
granted a one-time option to reduce the Leased Premises by a total of up to
30,000 square feet to relocate Lessee's operations to the Pujo Property, and

WHEREAS, Lessor and Lessee entered into a Fifth Amendment to Lease Agreement
dated March 13, 1998 by Lessee and March 19, 1998 by Lessor, which increased the
Leased Premises to 56,653 net rentable square feet (55,072 usable square feet)
commencing June 15, 1998 and expiring November 14, 2001 at a base monthly rental
of $52,167.97 with Lessee's free parking ratio increased to 56 vehicles, and

WHEREAS, Lessor and Lessee entered into a Sixth Amendment to Lease Agreement
dated February 12, 1999 by Lessee and February 17/th/, 1999 by Lessor, which
decreased the Leased Premises to 56,075 net rentable square feet, (54,569
usable) commencing March 1, 1999 and expiring November 14, 2001 at a base
monthly rental of $51,635.73, and

WHEREAS, Lessor and Lessee hereby agree to modify the Lease in accordance with
the terms expressed in this Seventh Amendment to Lease;

NOW THEREFORE, Lessor and Lessee hereby agree as follows:

1)   Section I., 1.2, Leased Premises - The net rentable area of the Leased
                      ---------------
Premises is increased to 57,701 net rentable square feet (55,983 usable) due to
the addition of Suite 980 (1626 net rentable square feet) to the Leased
Premises, as outlined on the floor plan attached hereto and made a part of this
Seventh Amendment to Lease Agreement as Attachment "A-11".

2)   Section II., 2.1, Term - The term of the addition of Suite 980 shall be one
                       ----
year, commencing on August 9, 1999 and expiring on August 8, 2000.

<PAGE>

3)   Section III, 3.1. Rent - Base monthly rental for the entire Leased Premises
                       ----
shall be Fifty-three thousand one hundred thirty-three dollars and ($53,133.00),
         ----------------------------------------------------------------------
payable on or before the first day of each calendar month of the lease term.
The monthly installment of base rental shall be prorated based upon the actual
occupancy date.

4)   Section VI., 6.1. Parking - Lessee's free parking shall increase to
                       -------
fifty-seven (57) cars in accordance with the parking ratio of one free space per
1,000 square feet of Net Rentable Area leased with one per 750 square feet
guaranteed in Lessor's adjacent parking garage.

This Seventh Amendment to Lease shall be governed by the same terms and
conditions of the original Lease Agreement as amended. All other terms,
covenants and conditions of this Lease, as amended, remain in full force and
effect as heretofore.

IN WITNESS WHEREOF, this Sixth Amendment to Lease is executed by Lessor at New
Orleans, Louisiana this 9th day of August, 1999.

WITNESSES:                                   HIBERNIA NATIONAL BANK

/s/ Gloria J. Kirk                           BY: /s/ Edward R. DeLatto
----------------------------                     ----------------------

/s/ [ILLEGIBLE]                              TITLE:      SVP
----------------------------                       --------------------

IN WITNESS WHEREOF, this Sixth Amendment to Lease is executed by Lessee at Lake
Charles, Louisiana this 5 day of August, 1999.

WITNESSES:                                   U.S. UNWIRED

/s/ Betty McManus                            BY: /s/ Brenda S. McElveen
----------------------------                    -----------------------

/s/ Malinda Hightower                        TITLE: V P Administration
----------------------------                       --------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]