Document:

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                                                                   EXHIBIT 10.36

                          REGISTRATION RIGHTS AGREEMENT

                                  BY AND AMONG

                             GIANT INDUSTRIES, INC.,

                            THE SUBSIDIARY GUARANTORS
                          LISTED ON SCHEDULE A HERETO,

                                       AND

                         BANC OF AMERICA SECURITIES LLC
                          BNP PARIBAS SECURITIES CORP.
                             FLEET SECURITIES, INC.

                            DATED AS OF MAY 14, 2002
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                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is made
and entered into as of May 14, 2002, by and among Giant Industries, Inc., a
Delaware corporation (the "Company"), the subsidiary guarantors listed on
Schedule A hereto (the "Subsidiary Guarantors"), and Banc of America Securities
LLC, BNP Paribas Securities Corp. and Fleet Securities, Inc. (each a "Purchaser"
and, collectively, the "Purchasers"), each of whom has agreed to purchase the
Company's 11% Senior Subordinated Notes due 2012 (the "Notes") pursuant to the
Purchase Agreement (as defined below).

                  The payment of principal of, premium and Liquidated Damages
(as defined below), if any, and interest on the Notes and the Exchange Notes (as
defined below) will be fully and unconditionally guaranteed on a senior
subordinated basis, jointly and severally by each of the Subsidiary Guarantors
pursuant to their guarantees (the "Guarantees"). The Company and the Subsidiary
Guarantors are herein collectively referred to as the "Companies"; the Notes and
the Guarantees thereof are herein collectively referred to as the "Securities";
and the Exchange Notes and the Guarantees thereof are herein collectively
referred to as the "Exchange Securities".

                  This Agreement is made pursuant to the Purchase Agreement,
dated as of April , 2002 (the "Purchase Agreement"), by and among the Companies
and the Purchasers (i) for your benefit and for the benefit of each other
Purchaser and (ii) for the benefit of the holders from time to time of the
Securities and Exchange Securities (including you and each other Purchaser). In
order to induce the Purchasers to purchase the Securities, the Companies have
agreed to provide the registration rights set forth in this Agreement. The
execution and delivery of this Agreement is a condition to the obligations of
the Purchasers set forth in the Purchase Agreement.

                  The parties hereby agree as follows:

                           SECTION 1. DEFINITIONS

                  As used in this Agreement, the following capitalized terms
shall have the following meanings:

                  Advice: As defined in Section 6(d) hereto.

                  Agreement: As defined in the preamble hereto.

                  Broker-Dealer: Any broker or dealer registered under the
         Exchange Act.

                  Closing Date: The date of this Agreement.

                  Commission: The Securities and Exchange Commission.

                  Company: As defined in the preamble hereto.

                  Companies:  As defined in the preamble hereto.

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                  Consummate: A registered Exchange Offer shall be deemed
         "Consummated" for purposes of this Agreement upon the occurrence of (i)
         the filing and effectiveness under the Securities Act of the Exchange
         Offer Registration Statement relating to the Exchange Securities to be
         issued in the Exchange Offer, (ii) the maintenance of such Registration
         Statement continuously effective and the keeping of the Exchange Offer
         open for a period not less than the minimum period required pursuant to
         Section 3(b) hereof, and (iii) the delivery by the Companies to the
         Registrar under the Indenture of Exchange Securities in the same
         aggregate principal amount as the aggregate principal amount of
         Securities that were tendered by Holders thereof pursuant to the
         Exchange Offer.

                  Effectiveness Target Date: As defined in Section 3(a) hereof
         with respect to the Exchange Offer Registration Statement and as
         defined in Section 4(a) hereof with respect to the Shelf Registration
         Statement.

                  Exchange Act: The Securities Exchange Act of 1934 (15 U.S.C.,
         Sections 78a to 78jj), as amended.

                  Exchange Notes: The 11% Senior Subordinated Notes due 2012, of
         the same series under the Indenture as the Notes, to be issued to
         Holders in exchange for Transfer Restricted Securities pursuant to this
         Agreement, with the Exchange Notes having substantially identical terms
         to the Notes.

                  Exchange Offer: The registration by the Companies under the
         Securities Act of the Exchange Securities pursuant to a Registration
         Statement pursuant to which the Companies offer the Holders of all
         outstanding Transfer Restricted Securities the opportunity to exchange
         all such outstanding Transfer Restricted Securities held by such
         Holders for Exchange Securities in an aggregate principal amount equal
         to the aggregate principal amount of the Transfer Restricted Securities
         tendered in such exchange offer by such Holders.

                  Exchange Offer Registration Statement: The Registration
         Statement relating to the Exchange Offer, including the related
         Prospectus.

                  Exchange Securities: As defined in the preamble hereto.

                  Exempt Resales: The transactions in which the Purchasers
         propose to sell the Securities to certain "qualified institutional
         buyers," as such term is defined in Rule 144A under the Securities Act,
         and to non-U.S. persons pursuant to Regulation S under the Securities
         Act.

                  Guarantees: As defined in the preamble hereto.

                  Holder: As defined in Section 2(b) hereof.

                  Indemnified Holder: As defined in Section 8(a) hereof.

                  Indenture: The Indenture, dated as of April , 2002, among the
         Company, as issuer, the Subsidiary Guarantors, as guarantors, and The
         Bank of New York, as trustee

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         (the "Trustee"), pursuant to which the Securities and the Exchange
         Securities are to be issued, as such Indenture is amended or
         supplemented from time to time in accordance with the terms thereof.

                  Initial Placement: The issuance and sale by the Companies of
         the Securities to the Purchasers pursuant to the Purchase Agreement.

                  Liquidated Damages: As defined in Section 5 hereof.

                  NASD: The National Association of Securities Dealers, Inc.

                  Notes: As defined in the preamble hereto.

                  Person: An individual, partnership, corporation, limited
         liability company, trust or unincorporated organization, or a
         government or agency or political subdivision thereof.

                  Prospectus: The prospectus included in a Registration
         Statement, as amended or supplemented by any prospectus supplement and
         by all other amendments thereto, including post-effective amendments,
         and all material incorporated by reference into such prospectus.

                  Purchase Agreement: As defined in the preamble hereto.

                  Purchasers: As defined in the preamble hereto.

                  Registrar: As defined in the Indenture.

                  Registration Default: As defined in Section 5 hereof.

                  Registration Statement: Any registration statement of the
         Companies relating to (a) an offering of Exchange Securities pursuant
         to an Exchange Offer or (b) the registration for resale of Transfer
         Restricted Securities pursuant to the Shelf Registration Statement,
         which is filed pursuant to the provisions of this Agreement, in each
         case, including the Prospectus included therein, all amendments and
         supplements thereto (including post-effective amendments) and all
         exhibits and material incorporated by reference therein.

                  Securities: As defined in the preamble hereto.

                  Securities Act: The Securities Act of 1933 (15 U.S.C.,
         Sections 77a to 77aa), as amended.

                  Shelf Filing Deadline: As defined in Section 4 hereof.

                  Shelf Registration Statement: As defined in Section 4 hereof.

                  Subsidiary Guarantors: As defined in the preamble hereto.

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                  Suspension Period: As defined in Section 4(a) hereof.

                  Transfer Restricted Security: Each Security, until the
         earliest to occur of (a) the date on which such Security is exchanged
         in the Exchange Offer and entitled to be resold to the public by the
         Holder thereof without complying with the prospectus delivery
         requirements of the Securities Act, (b) the date on which such Security
         has been effectively registered under the Securities Act and disposed
         of in accordance with a Shelf Registration Statement and (c) the date
         on which such Security is distributed to the public pursuant to Rule
         144 under the Securities Act or by a Broker-Dealer pursuant to the
         "Plan of Distribution" contemplated by the Exchange Offer Registration
         Statement (including delivery of the Prospectus contained therein).

                  Trust Indenture Act: The Trust Indenture Act of 1939 (15
         U.S.C. Sections 77aaa to 77bbbb), as in effect on the date of the
         Indenture.

                  Underwritten Registration or Underwritten Offering: A
         registration in which Securities are sold to an underwriter for
         reoffering to the public.

                           SECTION 2. SECURITIES SUBJECT TO THIS AGREEMENT

                           (a) Transfer Restricted Securities. The securities
         entitled to the benefits of this Agreement are the Transfer Restricted
         Securities.

                           (b) Holders of Transfer Restricted Securities. A
         Person is deemed to be a holder of Transfer Restricted Securities
         (each, a "Holder") whenever such Person owns Transfer Restricted
         Securities.

                           SECTION 3. REGISTERED EXCHANGE OFFER

                           (a) Unless the Exchange Offer shall not be
         permissible under applicable law or Commission policy (after the
         procedures set forth in Section 6(a) below have been complied with),
         the Companies shall (i) cause to be filed with the Commission as soon
         as practicable after the Closing Date, but in no event later than 60
         days after the Closing Date (or, if the 60th day is not a business day,
         the first business day thereafter), a Registration Statement under the
         Securities Act relating to the Exchange Securities and the Exchange
         Offer, (ii) use its best efforts to cause such Registration Statement
         to become effective at the earliest possible time, but in no event
         later than 150 days after the Closing Date (or, if the 150th day is not
         a business day, the first business day thereafter) (as such date
         relates to the Exchange Offer Registration Statement, the
         "Effectiveness Target Date"), (iii) in connection with the foregoing,
         file (A) all pre-effective amendments to such Registration Statement as
         may be necessary in order to cause such Registration Statement to
         become effective, (B) if applicable, a post-effective amendment to such
         Registration Statement pursuant to Rule 430A under the Securities Act
         and (C) all necessary filings in connection with the registration and
         qualification of the Exchange Securities to be made under the Blue Sky
         laws of such jurisdictions as are necessary to permit Consummation of
         the Exchange Offer, and (iv) upon the effectiveness of such
         Registration Statement, commence the Exchange Offer. The Exchange Offer
         shall be on the appropriate form permitting registration of the
         Exchange Securities to be offered in

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         exchange for the Transfer Restricted Securities and to permit resales
         of Exchange Securities held by Broker-Dealers as contemplated by
         Section 3(c) below.

                           (b) The Companies shall cause the Exchange Offer
         Registration Statement to be effective continuously and shall keep the
         Exchange Offer open for a period of not less than the minimum period
         required under applicable federal and state securities laws to
         Consummate the Exchange Offer; provided, however, that in no event
         shall such period be less than 30 days after the date notice of the
         Exchange Offer is mailed to the Holders. The Companies shall cause the
         Exchange Offer to comply with all applicable federal and state
         securities laws. No securities other than the Exchange Securities shall
         be included in the Exchange Offer Registration Statement. The Companies
         shall use their best efforts to cause the Exchange Offer to be
         Consummated on the earliest practicable date after the Exchange Offer
         Registration Statement has become effective, but in no event later than
         30 business days after the Effectiveness Target Date with respect to
         the Exchange Offer Registration Statement.

                           (c) The Companies shall indicate in a "Plan of
         Distribution" section contained in the Prospectus forming a part of the
         Exchange Offer Registration Statement that any Broker-Dealer who holds
         Securities that are Transfer Restricted Securities and that were
         acquired for its own account as a result of market-making activities or
         other trading activities (other than Transfer Restricted Securities
         acquired directly from the Companies), may exchange such Securities
         pursuant to the Exchange Offer; however, such Broker-Dealer may be
         deemed to be an "underwriter" within the meaning of the Securities Act
         and must, therefore, deliver a prospectus meeting the requirements of
         the Securities Act in connection with any resales of the Exchange
         Securities received by such Broker-Dealer in the Exchange Offer, which
         prospectus delivery requirement may be satisfied by the delivery by
         such Broker-Dealer of the Prospectus contained in the Exchange Offer
         Registration Statement. Such "Plan of Distribution" section shall also
         contain all other information with respect to such resales by
         Broker-Dealers that the Commission may require in order to permit such
         resales pursuant thereto, but such "Plan of Distribution" shall not
         name any such Broker-Dealer or disclose the amount of Exchange
         Securities held by any such Broker-Dealer except to the extent required
         by the Commission as a result of a change in policy after the date of
         this Agreement.

                           The Companies shall use their best efforts to keep
         the Exchange Offer Registration Statement continuously effective,
         supplemented and amended as required by the provisions of Section 6(c)
         below to the extent necessary to ensure that it is available for
         resales of Exchange Securities received in exchange for Securities
         acquired by Broker-Dealers for their own accounts as a result of
         market-making activities or other trading activities, and to ensure
         that it conforms with the requirements of this Agreement, the
         Securities Act and the policies, rules and regulations of the
         Commission as announced from time to time, for a period ending on the
         earlier of (i) 180 days from the date on which the Exchange Offer
         Registration Statement is declared effective and (ii) the date on which
         a Broker-Dealer is no longer required to deliver a prospectus in
         connection with market-making or other trading activities.

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                           The Companies shall provide sufficient copies of the
         latest version of such Prospectus to Broker-Dealers promptly upon
         request at any time during such 180-day (or shorter as provided in the
         foregoing sentence) period in order to facilitate such resales.

                           SECTION 4. SHELF REGISTRATION

                           (a) Shelf Registration. If (i) the Companies are not
         required to file an Exchange Offer Registration Statement or to
         consummate the Exchange Offer because the Exchange Offer is not
         permitted by applicable law or Commission policy (after the procedures
         set forth in Section 6(a) below have been complied with), (ii) for any
         reason the Exchange Offer is not Consummated within 180 days after the
         Closing Date, or (iii) any Holder of Transfer Restricted Securities
         shall notify the Company prior to the 20th day following the
         Consummation of the Exchange Offer that (A) such Holder is prohibited
         by applicable law or Commission policy from participating in the
         Exchange Offer, or (B) such Holder may not resell the Exchange
         Securities acquired by it in the Exchange Offer to the public without
         delivering a prospectus and that the Prospectus contained in the
         Exchange Offer Registration Statement is not appropriate or available
         for such resales by such Holder, or (C) such Holder is a Broker-Dealer
         and holds Securities acquired directly from the Companies or one of
         their affiliates, then, upon such Holder's request, the Companies
         shall:

                                    (x) cause to be filed a shelf registration
                  statement pursuant to Rule 415 under the Securities Act, which
                  may be an amendment to the Exchange Offer Registration
                  Statement (in either event, the "Shelf Registration
                  Statement") on or prior to the earliest to occur of (1) the
                  45th day after the date on which the Companies determine that
                  they are not required to file the Exchange Offer Registration
                  Statement and (2) the 45th day after the date on which the
                  Companies receive the notice from a Holder of Transfer
                  Restricted Securities as contemplated by clause (iii) above
                  (such earliest date being the "Shelf Filing Deadline"), which
                  Shelf Registration Statement shall provide for resales of all
                  Transfer Restricted Securities the Holders of which shall have
                  provided the information required pursuant to Section 4(b)
                  hereof; and

                                    (y) use their best efforts to cause such
                  Shelf Registration Statement to be declared effective by the
                  Commission on or before the 90th day after the Shelf Filing
                  Deadline (as such date relates to the Shelf Registration
                  Statement, the "Effectiveness Target Date").

         The Companies shall use their best efforts to keep such Shelf
         Registration Statement continuously effective, supplemented and amended
         as required by the provisions of Sections 6(b) and (c) hereof to the
         extent necessary to ensure that it is available for resales of
         Securities and Exchange Securities by the Holders of Transfer
         Restricted Securities entitled to the benefit of this Section 4(a), and
         to ensure that it conforms with the requirements of this Agreement, the
         Securities Act and the policies, rules and

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         regulations of the Commission as announced from time to time, for a
         period of at least two years following the Closing Date (or shorter
         period that will terminate when all the Securities and Exchange
         Securities covered by such Shelf Registration Statement have been sold
         pursuant to such Shelf Registration Statement); provided, however, that
         the Companies shall not be obligated to keep the Shelf Registration
         Statement effective if (i) the Company determines, in its reasonable
         judgment, upon advice of counsel, as authorized by a resolution of its
         Board of Directors, that the continued effectiveness and usability of
         the Shelf Registration Statement would (x) require the disclosure of
         material information, which the Company has a bona fide business reason
         for preserving as confidential, or (y) interfere with any financing,
         acquisition, corporate reorganization or other material transaction
         involving the Company or any of its subsidiaries or its parent,
         provided that the failure to keep the Shelf Registration Statement
         effective and usable for offers and sales of Securities for such
         reasons shall last no longer than 45 days in any 12-month period
         (whereafter Liquidated Damages shall accrue and be payable), and (ii)
         the Companies promptly thereafter comply with the requirements of
         Section 6(c)(i) hereof, if applicable. Any such period during which the
         Companies are excused from keeping the Shelf Registration Statement
         effective and usable for offers and sales of Securities is referred to
         herein as a "Suspension Period." A Suspension Period shall commence on
         and include the date that the Company gives notice that the
         Registration Statement is no longer effective or the Prospectus
         included therein is no longer usable for offers and sales of Securities
         and shall end on the earlier to occur of (1) the date on which each
         seller of Securities covered by the Shelf Registration Statement either
         receives the copies of the supplemented or amended prospectus
         contemplated by Section 6(c)(i) hereof or is advised in writing by the
         Company that use of the Prospectus may be resumed and (2) the
         expiration of 45 days in any 12-month period during which one or more
         Suspension Periods has been in effect. The Companies shall be deemed
         not to have used their best efforts to keep the Shelf Registration
         Statement effective during the requisite period if any of the Companies
         voluntarily takes any action (other than actions which trigger a
         Suspension Period) that would result in Holders of Securities covered
         thereby not being able to offer and sell such securities during that
         period, unless such action is required by applicable law.

                           (b) Provision by Holders of Certain Information in
         Connection with the Shelf Registration Statement. No Holder of Transfer
         Restricted Securities may include any of its Transfer Restricted
         Securities in any Shelf Registration Statement pursuant to this
         Agreement unless and until such Holder furnishes to the Company in
         writing, within 20 business days after receipt of a request therefor,
         such information as the Company may reasonably request for use in
         connection with any Shelf Registration Statement or Prospectus or
         preliminary Prospectus included therein. Each Holder as to which any
         Shelf Registration Statement is being effected agrees to furnish
         promptly to the Company all information required to be disclosed in
         order to make the information previously furnished to the Company by
         such Holder not materially misleading.

                           SECTION 5. LIQUIDATED DAMAGES

                  If (i) any of the Registration Statements required by this
Agreement is not filed with the Commission on or prior to the date specified for
such filing in this Agreement, (ii) any

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of such Registration Statements has not been declared effective by the
Commission on or prior to the applicable Effectiveness Target Date, (iii) the
Exchange Offer has not been Consummated within 30 business days after the
Effectiveness Target Date with respect to the Exchange Offer Registration
Statement or (iv) any Registration Statement required by this Agreement is filed
and declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose during the periods specified herein (other than
during a Suspension Period with respect to a Shelf Registration Statement) and
the Companies do not immediately file a post-effective amendment to such
Registration Statement that cures such failure and that is itself immediately
declared effective (each such event referred to in clauses (i) through (iv), a
"Registration Default"), the Companies hereby agree that the interest rate borne
by the Transfer Restricted Securities shall be increased by 0.5% per annum
during the 90-day period immediately following the occurrence of any
Registration Default and shall increase by 0.5% per annum at the end of each
subsequent 90-day period, but in no event shall such increase exceed 1.50% per
annum (any such interest assessed upon the occurrence of a Registration Default
is referred to as "Liquidated Damages"). Following the cure of all Registration
Defaults relating to any particular Transfer Restricted Securities, the interest
rate borne by the relevant Transfer Restricted Securities shall be reduced to
the original interest rate borne by such Transfer Restricted Securities;
provided, however, that, if after any such reduction in interest rate, a
different Registration Default occurs, the interest rate borne by the relevant
Transfer Restricted Securities shall again be increased pursuant to the
foregoing provisions.

                  All obligations of the Companies set forth in the preceding
paragraph that are outstanding with respect to any Transfer Restricted Security
at the time such security ceases to be a Transfer Restricted Security shall
survive until such time as all such obligations with respect to such Security
shall have been satisfied in full.

                           SECTION 6. REGISTRATION PROCEDURES

                           (a) Exchange Offer Registration Statement. In
         connection with the Exchange Offer, the Companies shall comply with all
         of the provisions of Section 6(c) below, shall use their best efforts
         to effect such exchange to permit the sale of Transfer Restricted
         Securities being sold in accordance with the intended method or methods
         of distribution thereof, and shall comply with all of the following
         provisions:

                           (i) If in the reasonable opinion of counsel to the
                  Companies (which may be in-house counsel) there is a question
                  as to whether the Exchange Offer is permitted by applicable
                  law, the Companies hereby agree to seek a no-action letter or
                  other favorable decision from the Commission allowing the
                  Companies to Consummate an Exchange Offer for such Securities.
                  The Companies hereby agree to pursue the issuance of such a
                  decision to the Commission staff level but shall not be
                  required to take commercially unreasonable action to effect a
                  change of Commission policy. The Companies hereby agree,
                  however, to (A) participate in telephonic conferences with the
                  Commission, (B) deliver to the Commission staff an analysis
                  prepared by counsel to the Companies (which may be in-house
                  counsel) setting forth the legal bases, if any, upon which
                  such counsel has concluded that such an Exchange Offer should

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                  be permitted and (C) diligently pursue a favorable resolution
                  by the Commission staff of such submission.

                           (ii) As a condition to its participation in the
                  Exchange Offer pursuant to the terms of this Agreement, each
                  Holder of Transfer Restricted Securities shall furnish, upon
                  the request of the Companies, prior to the Consummation
                  thereof, a written representation to the Companies (which may
                  be contained in the letter of transmittal contemplated by the
                  Exchange Offer Registration Statement) to the effect that (A)
                  it is not an affiliate of any of the Companies, (B) it is not
                  engaged in, and does not intend to engage in, and has no
                  arrangement or understanding with any person to participate
                  in, a distribution of the Exchange Securities to be issued in
                  the Exchange Offer and (C) it is acquiring the Exchange
                  Securities in its ordinary course of business. In addition,
                  all such Holders of Transfer Restricted Securities shall
                  otherwise cooperate in the Companies' preparations for the
                  Exchange Offer. Each Holder hereby acknowledges and agrees
                  that any Broker-Dealer and any such Holder using the Exchange
                  Offer to participate in a distribution of the securities to be
                  acquired in the Exchange Offer (1) could not under Commission
                  policy as in effect on the date of this Agreement rely on the
                  position of the Commission enunciated in Morgan Stanley and
                  Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
                  Corporation (available May 13, 1988), as interpreted in the
                  Commission's letter to Shearman & Sterling dated July 2, 1993,
                  and similar no-action letters (which may include any no-action
                  letter obtained pursuant to clause (i) above), and (2) must
                  comply with the registration and prospectus delivery
                  requirements of the Securities Act in connection with a
                  secondary resale transaction and that such a secondary resale
                  transaction should be covered by an effective registration
                  statement containing the selling security holder information
                  required by Item 507 or 508, as applicable, of Regulation S-K
                  if the resales are of Exchange Securities obtained by such
                  Holder in exchange for Securities acquired by such Holder
                  directly from the Companies.

                           (b) Shelf Registration Statement. In connection with
         the Shelf Registration Statement, the Companies shall comply with all
         the provisions of Section 6(c) below and shall use their best efforts
         to effect such registration to permit the sale of the Transfer
         Restricted Securities being sold in accordance with the intended method
         or methods of distribution thereof, and pursuant thereto the Companies
         will prepare and file with the Commission prior to the Shelf Filing
         Deadline a Registration Statement relating to the registration on any
         appropriate form under the Securities Act, which form shall be
         available for the sale of the Transfer Restricted Securities in
         accordance with the intended method or methods of distribution thereof.

                           (c) General Provisions. In connection with any
         Registration Statement and any Prospectus required by this Agreement to
         permit the sale or resale of Transfer Restricted Securities (including,
         without limitation, any Registration Statement and the related
         Prospectus required to permit resales of Securities and Exchange
         Securities by Broker-Dealers), the Companies shall:

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                           (i) use their best efforts to keep such Registration
                  Statement continuously effective and provide all requisite
                  financial statements for the period specified in Section 3 or
                  4 of this Agreement, as applicable; upon the occurrence of any
                  event that would cause any such Registration Statement or the
                  Prospectus contained therein (A) to contain a material
                  misstatement or omission or (B) not to be effective and usable
                  for resale of Transfer Restricted Securities during the period
                  required by this Agreement, the Companies shall file promptly
                  an appropriate amendment to such Registration Statement, in
                  the case of clause (A), correcting any such misstatement or
                  omission, and, in the case of either clause (A) or (B), use
                  its best efforts to cause such amendment to be declared
                  effective and such Registration Statement and the related
                  Prospectus to become usable for their intended purpose(s) as
                  soon as practicable thereafter;

                           (ii) prepare and file with the Commission such
                  amendments and post-effective amendments to the Registration
                  Statement as may be necessary to keep the Registration
                  Statement effective for the applicable period set forth in
                  Section 3 or 4 hereof, as applicable, or such shorter period
                  as will terminate when all Transfer Restricted Securities
                  covered by such Registration Statement have been sold; cause
                  the Prospectus to be supplemented by any required Prospectus
                  supplement, and as so supplemented to be filed pursuant to
                  Rule 424 under the Securities Act, and to comply fully with
                  the applicable provisions of Rules 424 and 430A under the
                  Securities Act in a timely manner; and comply with the
                  provisions of the Securities Act with respect to the
                  disposition of all securities covered by such Registration
                  Statement during the applicable period in accordance with the
                  intended method or methods of distribution by the sellers
                  thereof set forth in such Registration Statement or supplement
                  to the Prospectus;

                           (iii) advise the underwriter(s), if any, and selling
                  Holders promptly and, if requested by such Persons, to confirm
                  such advice in writing, (A) when the Prospectus or any
                  Prospectus supplement or post-effective amendment has been
                  filed, and, with respect to any Registration Statement or any
                  post-effective amendment thereto, when the same has become
                  effective, (B) of any request by the Commission for amendments
                  to the Registration Statement or amendments or supplements to
                  the Prospectus or for additional information relating thereto,
                  (C) of the issuance by the Commission of any stop order
                  suspending the effectiveness of the Registration Statement
                  under the Securities Act or of the suspension by any state
                  securities commission of the qualification of the Transfer
                  Restricted Securities for offering or sale in any
                  jurisdiction, or the initiation of any proceeding for any of
                  the preceding purposes, (D) of the existence of any fact or
                  the happening of any event that makes any statement of a
                  material fact made in the Registration Statement, the
                  Prospectus, any amendment or supplement thereto, or any
                  document incorporated by reference therein untrue, or that
                  requires the making of any additions to or changes in the
                  Registration Statement or the Prospectus in order to make the
                  statements therein not misleading. If at any time the
                  Commission shall issue any stop order suspending the
                  effectiveness of the Registration Statement, or any state
                  securities commission or other regulatory authority shall
                  issue an order suspending the qualification or exemption from

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                  qualification of the Transfer Restricted Securities under
                  state securities or Blue Sky laws, the Companies shall use
                  their best efforts to obtain the withdrawal or lifting of such
                  order at the earliest possible time;

                           (iv) furnish without charge to each of the
                  Purchasers, each selling Holder named in any Registration
                  Statement, and each of the underwriter(s), if any, before
                  filing with the Commission, copies of any Registration
                  Statement or any Prospectus included therein or any amendments
                  or supplements to any such Registration Statement or
                  Prospectus (including all documents incorporated by reference
                  after the initial filing of such Registration Statement),
                  which documents will be subject to the review of such Holders
                  and underwriter(s) in connection with such sale, if any, for a
                  period of at least five business days, and the Companies will
                  not file any such Registration Statement or Prospectus or any
                  amendment or supplement to any such Registration Statement or
                  Prospectus (including all such documents incorporated by
                  reference) to which a Purchaser of Transfer Restricted
                  Securities covered by such Registration Statement or the
                  underwriter(s), if any, shall reasonably object in writing
                  within five business days after the receipt thereof (such
                  objection to be deemed timely made upon confirmation of
                  telecopy transmission within such period). The objection of a
                  Purchaser or underwriter, if any, shall be deemed to be
                  reasonable if such Registration Statement, amendment,
                  Prospectus or supplement, as applicable, as proposed to be
                  filed, contains a material misstatement or omission;

                           (v) promptly prior to the filing of any document that
                  is to be incorporated by reference into a Registration
                  Statement or Prospectus, provide copies of such document to
                  the Purchasers, each selling Holder named in any Registration
                  Statement, and to the underwriter(s), if any, make the
                  respective representatives of the Companies available for
                  discussion of such document and other customary due diligence
                  matters, and include such information in such document prior
                  to the filing thereof as such selling Holders or
                  underwriter(s), if any, reasonably may request;

                           (vi) make available at reasonable times for
                  inspection by the Purchasers, any managing underwriter
                  participating in any disposition pursuant to such Registration
                  Statement and any attorney or accountant retained by such
                  Purchasers or any of the underwriter(s), all financial and
                  other records, pertinent corporate documents and properties of
                  the Companies and cause the respective officers, directors and
                  employees of the Companies to supply all information
                  reasonably requested by any such Holder, underwriter, attorney
                  or accountant in connection with such Registration Statement
                  subsequent to the filing thereof and prior to its
                  effectiveness;

                           (vii) if requested by any selling Holders or the
                  underwriter(s), if any, promptly incorporate in any
                  Registration Statement or Prospectus, pursuant to a supplement
                  or post-effective amendment if necessary, such information as
                  such selling Holders and underwriter(s), if any, may
                  reasonably request to have included therein, including,
                  without limitation, information relating to the "Plan

                                       11
<PAGE>
                  of Distribution" of the Transfer Restricted Securities,
                  information with respect to the principal amount of Transfer
                  Restricted Securities being sold to such underwriter(s), the
                  purchase price being paid therefor and any other terms of the
                  offering of the Transfer Restricted Securities to be sold in
                  such offering; and make all required filings of such
                  Prospectus supplement or post-effective amendment as soon as
                  practicable after the Company is notified of the matters to be
                  incorporated in such Prospectus supplement or post-effective
                  amendment;

                           (viii) use their best efforts to either (A) confirm
                  that the ratings obtained for the Securities prior to the
                  initial sale of the Securities will apply to the Transfer
                  Restricted Securities covered by the Registration Statement or
                  (B) cause the Transfer Restricted Securities covered by the
                  Registration Statement to be rated with the appropriate rating
                  agencies, if so requested by the Holders of a majority in
                  aggregate principal amount of Securities covered thereby or
                  the underwriter(s), if any;

                           (ix) furnish to each selling Holder and each of the
                  underwriter(s), if any, without charge, at least one copy of
                  the Registration Statement, as first filed with the
                  Commission, and of each amendment thereto, including financial
                  statements and schedules, all documents incorporated by
                  reference therein and all exhibits (including exhibits
                  incorporated therein by reference);

                           (x) deliver to each selling Holder and each of the
                  underwriter(s), if any, without charge, as many copies of the
                  Prospectus (including each preliminary prospectus) and any
                  amendment or supplement thereto as such Persons reasonably may
                  request; the Companies hereby consent to the use of the
                  Prospectus and any amendment or supplement thereto by each of
                  the selling Holders and each of the underwriter(s), if any, in
                  connection with the offering and the sale of the Transfer
                  Restricted Securities covered by the Prospectus or any
                  amendment or supplement thereto;

                           (xi) enter into an underwriting agreement, in
                  customary form, if requested in writing by Holders of a
                  majority in aggregate principal amount of Securities eligible
                  for inclusion in the Shelf Registration Statement; and take
                  all such other actions in connection therewith in order to
                  expedite or facilitate the disposition of the Transfer
                  Restricted Securities pursuant to any Registration Statement
                  contemplated by this Agreement; and whether or not an
                  underwriting agreement is entered into and whether or not the
                  registration is an Underwritten Registration, the Companies
                  shall:

                                    (1) furnish to each Purchaser, each selling
                           Holder and each underwriter, if any, in such
                           substance and scope as they may request and as are
                           customarily made by issuers to underwriters in
                           primary underwritten offerings, upon the date of the
                           Consummation of the Exchange Offer and, if
                           applicable, the effectiveness of the Shelf
                           Registration Statement:

                                       12
<PAGE>
                                    (A) a certificate, dated the date of
                           Consummation of the Exchange Offer or the date of
                           effectiveness of the Shelf Registration Statement, as
                           the case may be, signed by (y) the President or any
                           Vice President and (z) a principal financial or
                           accounting officer of each of the Companies,
                           confirming, as of the date thereof, the matters set
                           forth in Section 8 (f) of the Purchase Agreement, and
                           such other matters as such parties may reasonably
                           request;

                                    (B) an opinion, dated the date of
                           Consummation of the Exchange Offer or the date of
                           effectiveness of the Shelf Registration Statement, as
                           the case may be, of counsel for the Companies (which
                           may be in-house counsel), covering the matters set
                           forth in Section 8(d), (e) and (f) of the Purchase
                           Agreement and such other matters as such parties may
                           reasonably request, and in any event including a
                           statement to the effect that such counsel has
                           participated in conferences with the respective
                           officers and other representatives of the Companies,
                           representatives of the independent public accountants
                           for the Companies, the Purchasers' representatives
                           and the Purchasers' counsel in connection with the
                           preparation of such Registration Statement and the
                           related Prospectus and have considered the matters
                           required to be stated therein and the statements
                           contained therein, although such counsel has not
                           independently verified the accuracy, completeness or
                           fairness of such statements (except as otherwise
                           stated in such opinion); and that such counsel
                           advises that, on the basis of the foregoing (relying
                           as to materiality upon facts provided to such counsel
                           by the respective officers and other representatives
                           of the Companies and without independent check or
                           verification), no facts came to such counsel's
                           attention that caused such counsel to believe that
                           the applicable Registration Statement, at the time
                           such Registration Statement or any post-effective
                           amendment thereto became effective, and, in the case
                           of the Exchange Offer Registration Statement, as of
                           the date of Consummation, contained an untrue
                           statement of a material fact or omitted to state a
                           material fact required to be stated therein or
                           necessary to make the statements therein not
                           misleading, or that the Prospectus contained in such
                           Registration Statement as of its date and, in the
                           case of the opinion dated the date of Consummation of
                           the Exchange Offer, as of the date of Consummation,
                           contained an untrue statement of a material fact or
                           omitted to state a material fact necessary in order
                           to make the statements therein, in light of the
                           circumstances under which they were made, not
                           misleading. Without limiting the foregoing, such
                           counsel may state further that such counsel assumes
                           no responsibility for, and has not independently
                           verified, the accuracy, completeness or fairness of
                           the financial statements, notes and schedules and
                           other historical or pro forma financial data

                                       13
<PAGE>
                           included in any Registration Statement contemplated
                           by this Agreement or the related Prospectus; and

                                    (C) a customary comfort letter, dated as of
                           the date of Consummation of the Exchange Offer or the
                           date of effectiveness of the Shelf Registration
                           Statement, as the case may be, from the Companies'
                           independent accountants, in the customary form and
                           covering matters of the type customarily covered in
                           comfort letters by underwriters in connection with
                           primary underwritten offerings, and affirming the
                           matters set forth in the comfort letters delivered
                           pursuant to Section 8(h) and (j) of the Purchase
                           Agreement, without exception;

                           (2) set forth in full or incorporate by reference in
                  the underwriting agreement, if any, the indemnification
                  provisions and procedures of Section 8 hereof with respect to
                  all parties to be indemnified pursuant to said Section; and

                           (3) deliver such other documents and certificates as
                  may be reasonably requested by such parties to evidence
                  compliance with clause (A) above and with any customary
                  conditions contained in the underwriting agreement or other
                  agreement entered into by the Companies pursuant to this
                  clause (xi), if any.

                  If at any time the representations and warranties of the
         Companies contemplated in this clause (xi) cease to be true and
         correct, the Companies shall so advise the Purchasers and the
         underwriter(s), if any, and each selling Holder promptly and, if
         requested by such Persons, shall confirm such advice in writing;

                  (xii) prior to any public offering of Transfer Restricted
         Securities, cooperate with the selling Holders, the underwriter(s), if
         any, and their respective counsel in connection with the registration
         and qualification (or exemption from such registration and
         qualification or preemption of such registration and qualification by
         federal law) of the Transfer Restricted Securities under the securities
         or Blue Sky laws of such jurisdictions as the selling Holders or
         underwriter(s) reasonably request in writing and do any and all other
         acts or things necessary or advisable to enable the disposition in such
         jurisdictions of the Transfer Restricted Securities covered by the
         Shelf Registration Statement; provided, however, that none of the
         Companies shall be required to register or qualify as a foreign
         corporation where it is not then so qualified or to take any action
         that would subject it to the service of process in suits or to
         taxation, other than as to matters and transactions relating to the
         Registration Statement, in any jurisdiction where it is not then so
         subject;

                  (xiii) shall issue, upon the request of any Holder of
         Securities covered by the Shelf Registration Statement, Exchange
         Securities having an aggregate principal amount equal to the aggregate
         principal amount of Securities

                                       14
<PAGE>
         surrendered to the Company by such Holder in exchange therefor or being
         sold by such Holder; such Exchange Securities to be registered in the
         name of such Holder or in the name of the purchaser(s) of such
         Securities, as the case may be; in return, the Securities held by such
         Holder shall be surrendered to the Company for cancellation;

                  (xiv) cooperate with the selling Holders and the
         underwriter(s), if any, to facilitate the timely preparation and
         delivery of certificates representing Transfer Restricted Securities to
         be sold and not bearing any restrictive legends; and enable such
         Transfer Restricted Securities to be in such denominations and
         registered in such names as the Holders or the underwriter(s), if any,
         may request at least two business days prior to any sale of Transfer
         Restricted Securities made by such underwriter(s);

                  (xv) if any fact or event contemplated by Section 6(c)(iii)(D)
         above shall exist or have occurred, prepare a supplement or
         post-effective amendment to the Registration Statement or related
         Prospectus or any document incorporated therein by reference or file
         any other required document so that, as thereafter delivered to the
         purchasers of Transfer Restricted Securities, the Prospectus will not
         contain an untrue statement of a material fact or omit to state any
         material fact necessary to make the statements therein not misleading;

                  (xvi) provide a CUSIP number for all Transfer Restricted
         Securities not later than the effective date of the Registration
         Statement and provide the Trustee under the Indenture with printed
         certificates for the Transfer Restricted Securities which are in a form
         eligible for deposit with the Depositary Trust Company;

                  (xvii) cooperate and assist in any filings required to be made
         with the NASD and in the performance of any due diligence investigation
         by any underwriter (including any "qualified independent underwriter")
         that is required to be retained in accordance with the rules and
         regulations of the NASD, and use its reasonable best efforts to cause
         such Registration Statement to become effective and approved by such
         governmental agencies or authorities as may be necessary to enable the
         Holders selling Transfer Restricted Securities to consummate the
         disposition of such Transfer Restricted Securities;

                  (xviii) otherwise use their best efforts to comply with all
         applicable rules and regulations of the Commission, and make generally
         available to its security holders, as soon as practicable, a
         consolidated earnings statement meeting the requirements of Rule 158
         (which need not be audited) for the twelve-month period (A) commencing
         at the end of any fiscal quarter in which Transfer Restricted
         Securities are sold to underwriters in a firm or best efforts
         Underwritten Offering or (B) if not sold to underwriters in such an
         offering, beginning with the first month of the Company's first fiscal
         quarter commencing after the effective date of the Registration
         Statement;

                                       15
<PAGE>
                  (xix) cause the Indenture to be qualified under the Trust
         Indenture Act not later than the effective date of the first
         Registration Statement required by this Agreement, and, in connection
         therewith, cooperate with the Trustee and the Holders of Securities and
         Exchange Securities to effect such changes to the Indenture as may be
         required for such Indenture to be so qualified in accordance with the
         terms of the Trust Indenture Act; and to execute and use its best
         efforts to cause the Trustee to execute all documents that may be
         required to effect such changes and all other forms and documents
         required to be filed with the Commission to enable such Indenture to be
         so qualified in a timely manner;

                  (xx) cause all Transfer Restricted Securities covered by the
         Registration Statement to be listed on each securities exchange on
         which similar securities issued by the Company are then listed, if any,
         if requested by the Holders of a majority in aggregate principal amount
         of Securities or the managing underwriter(s), if any; and

                  (xxi) provide promptly to each Holder upon request each
         document filed with the Commission pursuant to the requirements of
         Section 13 and Section 15 of the Exchange Act.

                  (d) Restrictions on Holders. Each Holder agrees by acquisition
of a Transfer Restricted Security that, upon receipt of any notice from the
Companies of the existence of any fact of the kind described in Section
6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration Statement
until such Holder's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is advised in
writing (the "Advice") by the Companies that the use of the Prospectus may be
resumed, and has received copies of any additional or supplemental filings that
are incorporated by reference in the Prospectus. If so directed by the
Companies, each Holder will deliver to the Companies (at the Companies' expense)
all copies, other than permanent file copies then in such Holder's possession,
of the Prospectus covering such Transfer Restricted Securities that was current
at the time of receipt of such notice. In the event the Companies shall give any
such notice, the time period regarding the effectiveness of such Registration
Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended
by the number of days during the period from and including the date of the
giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and including
the date when each selling Holder covered by such Registration Statement shall
have received the copies of the supplemented or amended Prospectus contemplated
by Section 6(c)(xvi) hereof or shall have received the Advice; however, no such
extension shall be taken into account in determining whether Liquidated Damages
are due pursuant to Section 5 hereof or the amount of such Liquidated Damages,
it being agreed that the Companies' option to suspend use of a Registration
Statement pursuant to this paragraph shall be treated as a Registration Default
for purposes of Section 5.

                                       16
<PAGE>
                           SECTION 7. REGISTRATION EXPENSES

                  (a) All expenses incident to the Companies' performance of or
         compliance with this Agreement will be borne by the Companies,
         regardless of whether a Registration Statement becomes effective,
         including without limitation: (i) all registration and filing fees and
         expenses (including filings made by any Purchaser or Holder with the
         NASD (and, if applicable, the fees and expenses of any "qualified
         independent underwriter" and its counsel that may be required by the
         rules and regulations of the NASD)); (ii) all fees and expenses of
         compliance with federal securities and state Blue Sky or securities
         laws; (iii) all expenses of printing (including printing certificates
         for the Exchange Securities to be issued in the Exchange Offer and
         printing of Prospectuses), messenger and delivery services and
         telephone; (iv) all fees and disbursements of counsel for the Companies
         and, subject to Section 7(b) below, the Holders of Transfer Restricted
         Securities; and (v) all fees and disbursements of independent certified
         public accountants of the Companies (including the expenses of any
         special audit and comfort letters required by or incident to such
         performance).

                  The Companies will, in any event, bear their internal expenses
         (including, without limitation, all salaries and expenses of their
         respective officers and employees performing legal or accounting
         duties), the expenses of any annual audit and the fees and expenses of
         any Person, including special experts, retained by any of the
         Companies.

                  (b) In connection with any Registration Statement required by
         this Agreement (including, without limitation, the Exchange Offer
         Registration Statement and the Shelf Registration Statement), the
         Companies will jointly and severally reimburse the Purchasers and the
         Holders of Transfer Restricted Securities being tendered in the
         Exchange Offer and/or resold pursuant to the "Plan of Distribution"
         contained in the Exchange Offer Registration Statement or registered
         pursuant to the Shelf Registration Statement, as applicable, for the
         reasonable fees and disbursements of not more than one counsel, who
         shall be Shearman & Sterling or such other counsel as may be chosen by
         the Holders of a majority in principal amount of the Transfer
         Restricted Securities for whose benefit such Registration Statement is
         being prepared.

                           SECTION 8. INDEMNIFICATION

                  (a) The Companies jointly and severally agree to indemnify and
         hold harmless (i) each Holder and (ii) each person, if any, who
         controls (within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act) any Holder (any of the persons referred
         to in this clause (ii) being hereinafter referred to as a "controlling
         person") and (iii) the respective officers, directors, partners,
         employees, representatives and agents of any Holder or any controlling
         person (any person referred to in clause (i), (ii) or (iii) may
         hereinafter be referred to as an "Indemnified Holder"), to the fullest
         extent lawful, from and against any and all losses, claims, damages,
         liabilities, judgments, actions and expenses (including without
         limitation and as incurred, reimbursement of all reasonable costs of
         investigating, preparing, pursuing, settling, compromising, paying or
         defending any claim or action, or any investigation or proceeding by
         any governmental agency or body, commenced or threatened, including the
         reasonable fees and expenses of

                                       17
<PAGE>
         counsel to any Indemnified Holder), joint or several, directly or
         indirectly caused by, related to, based upon, arising out of or in
         connection with any untrue statement or alleged untrue statement of a
         material fact contained in any Registration Statement or Prospectus (or
         any amendment or supplement thereto), or any omission or alleged
         omission to state therein a material fact required to be stated therein
         or necessary to make the statements therein not misleading, except
         insofar as such losses, claims, damages, liabilities or expenses are
         caused by an untrue statement or omission or alleged untrue statement
         or omission that is made in reliance upon and in conformity with
         information relating to any of the Holders furnished in writing to the
         Company by any of the Holders expressly for use therein; provided,
         however, that the Companies will not be liable to any Purchaser, Holder
         (in its capacity as Holder) or underwriter (or any person who controls
         such party within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act) with respect to any untrue statement or
         alleged untrue statement or omission or alleged omission of a material
         fact made in any preliminary Prospectus to the extent that the
         Companies shall sustain the burden of proving that any such loss,
         liability, claim, damage or expense resulted from the fact that such
         Purchaser, Holder (in its capacity as Holder), or underwriter, as the
         case may be, sold Transfer Restricted Securities to a Person to whom
         such Purchaser, Holder (in its capacity as Holder) or underwriter, as
         the case may be, failed to send or give, at or prior to the written
         confirmation of sale of such Securities a copy of the final Prospectus
         (as amended or supplemented) if the Companies have previously furnished
         copies thereof (sufficiently in advance of the closing of such sale to
         allow for distribution of the final Prospectus in a timely manner) to
         such Purchaser, Holder (in its capacity as Holder) or underwriter, as
         the case may be, and the loss, liability, claim, damage or expense of
         such Purchaser, Holder (in its capacity as Holder) or underwriter, as
         the case may be, resulted solely from an untrue statement or alleged
         untrue statement or omission or alleged omission of a material fact
         contained in or omitted from such preliminary Prospectus which was
         corrected in the final Prospectus. This indemnity agreement shall be in
         addition to any liability which any of the Companies may otherwise
         have.

                  In case any action or proceeding (including any governmental
         or regulatory investigation or proceeding) shall be brought or asserted
         against any of the Indemnified Holders with respect to which indemnity
         may be sought against any of the Companies, such Indemnified Holder (or
         the Indemnified Holder controlled by such controlling person) shall
         promptly notify the Company in writing (provided that the failure to
         give such notice shall not relieve any of the Companies of its
         obligations pursuant to this Agreement). The Companies shall be jointly
         and severally liable for any settlement of any such action or
         proceeding effected with the Company's prior written consent, which
         consent shall not be withheld unreasonably, and the Companies jointly
         and severally agree to indemnify and hold harmless any Indemnified
         Holder from and against any loss, claim, damage, liability or expense
         by reason of any settlement of any action effected with the written
         consent of the Company. The Companies shall not, without the prior
         written consent of each Indemnified Holder, settle or compromise or
         consent to the entry of judgment in or otherwise seek to terminate any
         pending or threatened action, claim, litigation or proceeding in
         respect of which indemnification or contribution may be sought
         hereunder (whether or not any Indemnified Holder is a party thereto),
         unless such settlement, compromise, consent or termination includes an

                                       18
<PAGE>
         unconditional release of each Indemnified Holder from all liability
         arising out of such action, claim, litigation or proceeding.

                  (b) Each Holder of Transfer Restricted Securities agrees,
         severally and not jointly, to indemnify and hold harmless each of the
         Companies, and its directors and officers who sign a Registration
         Statement, and any person controlling (within the meaning of Section 15
         of the Securities Act or Section 20 of the Exchange Act) each of the
         Companies and the respective officers, directors, partners, employees,
         representatives and agents of each such person, to the same extent as
         the foregoing indemnity from the Companies to each of the Indemnified
         Holders, but only with respect to claims and actions based on
         information relating to such Holder furnished in writing by such Holder
         expressly for use in any Registration Statement. In case any action or
         proceeding shall be brought against any of the Companies or its
         directors or officers or any such controlling person in respect of
         which indemnity may be sought against a Holder of Transfer Restricted
         Securities, such Holder shall have the rights and duties given each of
         the Companies and each of the Companies or its directors or officers or
         such controlling person shall have the rights and duties given to each
         Holder by the preceding paragraph. In no event shall the liability of
         any selling Holder hereunder be greater in amount than the dollar
         amount of the proceeds received by such Holder upon the sale of the
         Securities and Exchange Securities giving rise to such indemnification
         obligation.

                  (c) In case any action is brought against any indemnified
         party and such indemnified party seeks or intends to seek indemnity
         from an indemnifying party, the indemnifying party will be entitled to
         participate in and, to the extent that it shall elect, jointly with all
         other indemnifying parties similarly notified, by written notice
         delivered to the indemnified party promptly after receiving the
         aforesaid notice from such indemnified party, to assume the defense
         thereof with counsel reasonably satisfactory to such indemnified party;
         provided, however, if the defendants in any such action include both
         the indemnified party and the indemnifying party and the indemnified
         party shall have reasonably concluded that a conflict may arise between
         the positions of the indemnifying party and the indemnified party in
         conducting the defense of any such action or that there may be legal
         defenses available to it and/or other indemnified parties which are
         different from or additional to those available to the indemnifying
         party, the indemnified party or parties shall have the right to select
         separate counsel to assume such legal defenses and to otherwise
         participate in the defense of such action on behalf of such indemnified
         party or parties. Upon receipt of notice from the indemnifying party to
         such indemnified party of such indemnifying party's election so to
         assume the defense of such action and approval by the indemnified party
         of counsel, the indemnifying party will not be liable to such
         indemnified party under this Section 8 for any legal or other expenses
         subsequently incurred by such indemnified party in connection with the
         defense thereof unless (i) the indemnified party shall have employed
         separate counsel in accordance with the proviso to the next preceding
         sentence (it being understood, however, that the indemnifying party
         shall not be liable for the expenses of more than one separate counsel
         (together with local counsel), approved by the indemnifying party,
         representing the indemnified parties who are parties to such action) or
         (ii) the indemnifying party shall not have employed counsel reasonably
         satisfactory to the indemnified party to represent the indemnified
         party within a reasonable time after notice of commencement of the
         action,

                                       19
<PAGE>
         in each of which cases the fees and expenses of counsel shall be at the
         expense of the indemnifying party.

                  (d) If the indemnification provided for in this Section 8 is
         unavailable to an indemnified party under Section 8(a) or Section 8(b)
         hereof (other than by reason of exceptions provided in those Sections)
         in respect of any losses, claims, damages, liabilities, judgments,
         actions or expenses referred to therein, then each applicable
         indemnifying party, in lieu of indemnifying such indemnified party,
         shall contribute to the amount paid or payable by such indemnified
         party as a result of such losses, claims, damages, liabilities or
         expenses in such proportion as is appropriate to reflect the relative
         benefits received by the Companies, on the one hand, and the Holders,
         on the other hand, from (x) the Initial Placement (which in the case of
         the Companies shall be deemed to be equal to the total gross proceeds
         from the Initial Placement as set forth on the cover page of the
         Offering Memorandum (as defined in the Purchase Agreement)), (y) the
         amount of Liquidated Damages which did not become payable as a result
         of the filing of the Registration Statement resulting in such losses,
         claims, damages, liabilities, judgments actions or expenses, and (z)
         such Registration Statement, or if such allocation is not permitted by
         applicable law, the relative fault of the Companies, on the one hand,
         and of the Indemnified Holder, on the other hand, in connection with
         the statements or omissions which resulted in such losses, claims,
         damages, liabilities or expenses, as well as any other relevant
         equitable considerations. The relative fault of the Companies, on the
         one hand, and of the Indemnified Holder, on the other, shall be
         determined by reference to, among other things, whether the untrue or
         alleged untrue statement of a material fact or the omission or alleged
         omission to state a material fact relates to information supplied by
         any of the Companies or by the Indemnified Holder and the parties'
         relative intent, knowledge, access to information and opportunity to
         correct or prevent such statement or omission. The amount paid or
         payable by a party as a result of the losses, claims, damages,
         liabilities and expenses referred to above shall be deemed to include,
         subject to the limitations set forth in the second paragraph of Section
         8(a), any legal or other fees or expenses reasonably incurred by such
         party in connection with investigating or defending any action or
         claim.

                  The Companies and each Holder of Transfer Restricted
         Securities agree that it would not be just and equitable if
         contribution pursuant to this Section 8(d) were determined by pro rata
         allocation (even if the Holders were treated as one entity for such
         purpose) or by any other method of allocation which does not take
         account of the equitable considerations referred to in the immediately
         preceding paragraph. The amount paid or payable by an indemnified party
         as a result of the losses, claims, damages, liabilities or expenses
         referred to in the immediately preceding paragraph shall be deemed to
         include, subject to the limitations set forth above, any legal or other
         expenses reasonably incurred by such indemnified party in connection
         with investigating or defending any such action or claim.
         Notwithstanding the provisions of this Section 8, none of the Holders
         (and its related Indemnified Holders) shall be required to contribute,
         in the aggregate, any amount in excess of the amount by which the net
         proceeds received by such Holder from the sale of the Securities
         exceeds the amount of any damages which such Holder has otherwise been
         required to pay by reason of such untrue or alleged untrue statement or
         omission or alleged omission. No person guilty of fraudulent

                                       20
<PAGE>
         misrepresentation (within the meaning of Section 11(f) of the
         Securities Act) shall be entitled to contribution from any person who
         was not guilty of such fraudulent misrepresentation. The Holders'
         obligations to contribute pursuant to this Section 8(c) are several in
         proportion to the respective principal amount of Securities held by
         each of the Holders hereunder and not joint.

                           SECTION 9. RULE 144A

                  The Companies hereby agree with each Holder, for so long as
any Transfer Restricted Securities remain outstanding, and during any period the
Companies (i) are not subject to Section 13 or 15(d) of the Exchange Act, to
make available to any Holder or beneficial owner of Transfer Restricted
Securities in connection with any sale thereof and any prospective purchaser of
such Transfer Restricted Securities from such Holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Securities Act in order to
permit resales of such Transfer Restricted Securities pursuant to Rule 144A and
(ii) are subject to Section 13 or Section 15(d) of the Exchange Act, to make all
filings required thereunder in a timely manner in order to permit resales of
such Transfer Restricted Securities pursuant to Rule 144A.

                           SECTION 10. PARTICIPATION IN UNDERWRITTEN
                           REGISTRATIONS

                  No Holder may participate in any Underwritten Registration
hereunder unless such Holder (a) agrees to sell such Holder's Transfer
Restricted Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all reasonable questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters and other documents
required under the terms of such underwriting arrangements.

                           SECTION 11. SELECTION OF UNDERWRITERS

                  The Holders of Transfer Restricted Securities covered by the
Shelf Registration Statement who desire to do so may sell such Transfer
Restricted Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers
that will administer the offering will be selected by the Holders of a majority
in aggregate principal amount of the Transfer Restricted Securities included in
such offering; provided, that such investment bankers and managers must be
reasonably satisfactory to the Companies.

                           SECTION 12. MISCELLANEOUS

                  (a) Remedies. The Companies hereby agree that monetary damages
         would not be adequate compensation for any loss incurred by reason of a
         breach by it of the provisions of this Agreement and hereby agree to
         waive the defense in any action for specific performance that a remedy
         at law would be adequate.

                  (b) No Inconsistent Agreements. The Companies will not, on or
         after the date of this Agreement, enter into any agreement with respect
         to its securities that is inconsistent with the rights granted to the
         Holders in this Agreement or otherwise conflicts with the provisions
         hereof. The rights granted to the Holders hereunder do not

                                       21
<PAGE>
         in any way conflict with and are not inconsistent with the rights
         granted to the holders of any of the Companies' securities under any
         agreement in effect on the date hereof.

                  (c) Adjustments Affecting the Securities. The Companies will
         not take any action, or permit any change to occur, with respect to the
         Securities that would materially and adversely affect the ability of
         the Holders to Consummate any Exchange Offer.

                  (d) Amendments and Waivers. The provisions of this Agreement
         may not be amended, modified or supplemented, and waivers or consents
         to or departures from the provisions hereof may not be given unless the
         Companies have obtained the written consent of Holders of a majority of
         the outstanding principal amount of Transfer Restricted Securities.
         Notwithstanding the foregoing, a waiver or consent to departure from
         the provisions hereof that relates exclusively to the rights of Holders
         whose securities are being tendered pursuant to the Exchange Offer and
         that does not affect directly or indirectly the rights of other Holders
         whose securities are not being tendered pursuant to such Exchange Offer
         may be given by the Holders of a majority of the outstanding principal
         amount of Transfer Restricted Securities being tendered or registered;
         provided that, with respect to any matter that directly or indirectly
         affects the rights of any Purchaser hereunder, the Companies shall
         obtain the written consent of each such Purchaser with respect to which
         such amendment, qualification, supplement, waiver, consent or departure
         is to be effective.

                  (e) Notices. All notices and other communications provided for
         or permitted hereunder shall be made in writing by hand-delivery,
         first-class mail (registered or certified, return receipt requested),
         facsimile or air courier guaranteeing overnight delivery:

                  (i) if to a Holder, at the address set forth on the records of
         the Registrar under the Indenture, with a copy to the Registrar under
         the Indenture; and

                  (ii) if to the Companies:

                           Giant Industries, Inc.
                           23733 North Scottsdale Road
                           Scottsdale, Arizona 85255
                           Facsimile: (602) 585-8985
                           Attention: General Counsel

                           with a copy to:

                           Fennemore Craig, P.C.
                           3003 North Central Avenue
                           Suite 2600
                           Facsimile: (602) 916-5507
                           Attention:  Karen C. McConnell

                                       22
<PAGE>
         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if faxed; and on the next business day, if timely delivered to an
air courier guaranteeing overnight delivery.

         Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

         (f) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties,
including without limitation and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities; provided, however, that
this Agreement shall not inure to the benefit of or be binding upon a successor
or assign of a Holder unless and to the extent such successor or assign acquired
Transfer Restricted Securities from such Holder.

         (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

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

         (i) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         (j) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

         (k) Entire Agreement. This Agreement together with the Purchase
Agreement, the DTC Letter of Representations, the Securities, the Exchange
Securities, and the Indenture (each as defined in the Purchase Agreement) is
intended by the parties as a final expression of their agreement and intended to
be a complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein with respect to the registration rights granted by the
Companies with respect to the Transfer Restricted Securities. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       23
<PAGE>
                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.

                                GIANT INDUSTRIES, INC.

                                By: /s/ Mark B. Cox
                                    -------------------------------------------
                                    Name:  Mark B. Cox
                                    Title: Chief Financial Officer

                                THE SUBSIDIARY GUARANTORS:

                                GIANT INDUSTRIES ARIZONA, INC.,
                                an Arizona corporation

                                By: /s/ Mark B. Cox
                                    -------------------------------------------
                                    Name:  Mark B. Cox
                                    Title: Chief Financial Officer and Director

                                CINIZA PRODUCTION COMPANY,
                                a New Mexico corporation

                                By: /s/ Mark B. Cox
                                    -------------------------------------------
                                    Name:  Mark B. Cox
                                    Title: Chief Financial Officer and Director

                                GIANT STOP-N-GO OF NEW MEXICO, INC.,
                                a New Mexico corporation

                                By: /s/ Mark B. Cox
                                    -------------------------------------------
                                    Name:  Mark B. Cox
                                    Title: Chief Financial Officer and Director

                                       24
<PAGE>
                                 GIANT FOUR CORNERS, INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 PHOENIX FUEL CO., INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                 Name:  Mark B. Cox
                                 Title: Chief Financial Officer and Director

                                 SAN JUAN REFINING COMPANY,
                                 a New Mexico corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT MID-CONTINENT, INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT PIPELINE COMPANY,
                                 a New Mexico corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                       25
<PAGE>
                                 DEGUELLE OIL COMPANY,
                                 a Colorado corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT YORKTOWN, INC.,
                                 a Delaware corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT YORKTOWN HOLDING COMPANY,
                                 A Delaware corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name:  Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                       26
<PAGE>
The foregoing Registration Rights
Agreement is hereby confirmed and
accepted as of the date first above
written.

BANC OF AMERICA SECURITIES LLC
BNP PARIBAS SECURITIES CORP.
FLEET SECURITIES, INC.

BY:  BANC OF AMERICA SECURITIES LLC

By: /s/ Lily Chang
    -------------------------------
    Name:  Lily Chang
    Title:  Principal

                                       27
<PAGE>
                                   SCHEDULE A

SUBSIDIARY GUARANTORS

GIANT INDUSTRIES ARIZONA, INC., an Arizona corporation
CINIZA PRODUCTION COMPANY, a New Mexico corporation
GIANT STOP-N-GO OF NEW MEXICO, INC., a New Mexico corporation
GIANT FOUR CORNERS, INC., an Arizona corporation
PHOENIX FUEL CO., INC., an Arizona corporation
SAN JUAN REFINING COMPANY, a New Mexico corporation
GIANT MID-CONTINENT, INC., an Arizona corporation
GIANT PIPELINE COMPANY, a New Mexico corporation
DEGUELLE OIL COMPANY, a Colorado corporation
GIANT YORKTOWN, INC., a Delaware corporation
GIANT YORKTOWN HOLDING COMPANY, a Delaware corporation<PAGE>

                                                                   EXHIBIT 10.37

                                U.S.$200,000,000

                             GIANT INDUSTRIES, INC.

                     11% Senior Subordinated Notes due 2012

                               PURCHASE AGREEMENT

                                                                     May 9, 2002

BANC OF AMERICA SECURITIES LLC
BNP PARIBAS SECURITIES CORP.
FLEET SECURITIES, INC.
     As Purchasers
c/o BANC OF AMERICA SECURITIES LLC
9 West 57th Street
New York, New York 10019

Ladies and Gentlemen:

         Giant Industries, Inc., a Delaware corporation (the "Company"),
proposes, subject to the terms and conditions stated herein, to issue and sell
to the several Purchasers named in Schedule A (the "Purchasers"), acting
severally and not jointly, the respective amounts set forth in such Schedule A
of U.S.$200,000,000 aggregate principal amount of the Company's 11% Senior
Subordinated Notes due 2012 (the "Notes"). Banc of America Securities LLC, BNP
Paribas Securities Corp. and Fleet Securities, Inc. have agreed to act as the
several Purchasers in connection with the offering and sale of the Notes.

         The Notes are to be issued pursuant to an Indenture, to be dated as of
May 14, 2002 (the "Indenture"), among the Company, the Subsidiary Guarantors (as
defined below), and The Bank of New York, as indenture trustee (the "Trustee").
Notes issued in book-entry form will be issued in the name of Cede & Co., as
nominee of The Depository Trust Company ("DTC") pursuant to a letter of
representations, to be dated as of the Delivery Date (as defined in Section 3)
(the "DTC Letter of Representations"), among the Company, the Subsidiary
Guarantors party thereto, the Trustee and DTC.

         Holders (including subsequent transferees) of the Notes will have the
registration rights set forth in the Registration Rights Agreement to be dated
as of May 14, 2002 (the "Registration Rights Agreement") among the Company, the
Subsidiary Guarantors and the Purchasers. Pursuant to the Registration Rights
Agreement, the Company and the Subsidiary Guarantors will agree to file with the
Securities and Exchange Commission (the "Commission") (i) a registration
statement under the United States Securities Act of 1933, as amended (the
<PAGE>
"Securities Act", which term, as used herein, includes the rules and regulations
of the Commission promulgated thereunder), relating to the senior subordinated
notes of the Company (the "Exchange Notes") identical in all material respects
to the Notes (except that the Exchange Notes will not contain terms with respect
to transfer restrictions) to be offered in exchange for the Notes (the "Exchange
Offer") and (ii) under certain circumstances, a shelf registration statement
pursuant to Rule 415 under the Securities Act.

         The payment of principal of, premium and Liquidated Damages (as defined
in the Registration Rights Agreement), if any, and interest on the Notes and the
Exchange Notes will be fully and unconditionally guaranteed on a senior
subordinated basis, jointly and severally, by all the Subsidiary Guarantors as
defined in the Offering Memorandum (as defined below) (collectively, the
"Subsidiary Guarantors", and together with the Company, the "Sellers"), pursuant
to their guarantees (the "Guarantees"). Each of the Subsidiary Guarantors as of
the date of this Agreement is listed in Schedule B. The Notes and the Guarantees
thereof are herein collectively referred to as the "Securities"; and the
Exchange Notes and the Guarantees thereof are herein collectively referred to as
the "Exchange Securities".

         As described in the Offering Memorandum, the proceeds from the offering
of the Securities, together with cash in hand and borrowings under (i) a new
three-year $100 million senior secured revolving credit agreement (the "New
Revolving Credit Facility Agreement") and (ii) a new three-year $40 million
senior secured mortgage loan agreement (the "New Mortgage Loan Agreement"), will
be used to (a) fund the acquisition (the "Yorktown Acquisition") of a refinery
located in Yorktown, Virginia (the "Yorktown Refinery"), and the associated
inventory, pursuant to the Asset Purchase Agreement, dated as of February 8,
2002 (the "Yorktown Asset Purchase Agreement"), between the Company, on the one
hand, and BP Corporation North America Inc. and BP Products North America Inc.
(collectively, "BP"), on the other hand, (b) redeem all $100 million aggregate
principal amount of the Company's 9-3/4% senior subordinated notes due 2003 (the
"9-3/4% Notes") in accordance with the terms and conditions under the Indenture,
dated as of November 29, 1993 (as amended and supplemented, the "1993
Indenture"), among the Company, the guarantors party thereto and The Bank of New
York, as trustee, and (c) pay related transaction fees and expenses. The New
Revolving Credit Facility Agreement, the New Mortgage Loan Agreement, the
Yorktown Acquisition and the redemption of the 9-3/4% Notes are herein
collectively referred to as the "Related Transactions".

         It is understood that (a) the Purchasers will offer and resell some or
all of the Securities in the United States to "qualified institutional buyers"
in reliance on Rule 144A under the Securities Act and (b) the Purchasers or
affiliates thereof may resell a portion of the Securities outside the United
States to certain persons in reliance on Regulation S under the Securities Act.
Such "qualified institutional buyers" and persons who purchase the Securities in
reliance on Regulation S are herein collectively referred to as the "Subsequent
Purchasers".

         This is to confirm the agreement among the Company, the Subsidiary
Guarantors and the Purchasers concerning the issue and purchase of the
Securities.

                                       2
<PAGE>
                  1. Representations and Warranties. The Company and each
Subsidiary Guarantor jointly and severally represent, warrant and agree that:

                  (a) The Company has prepared a preliminary confidential
         offering memorandum dated April 26, 2002 and a confidential offering
         memorandum dated the date hereof relating to the Securities. Copies of
         such preliminary confidential offering memorandum and such confidential
         offering memorandum have been delivered by the Company to the
         Purchasers. As used in this Agreement, "Offering Memorandum" means such
         preliminary confidential offering memorandum and such confidential
         offering memorandum, as amended or supplemented, including all
         information incorporated by reference therein. The preliminary
         confidential offering memorandum, as of its date, and the Offering
         Memorandum does not, as of the date hereof, and will not, as of the
         date of any amendment or supplement thereto or as of the Delivery Date,
         contain any untrue statement of a material fact or omit to state any
         material fact necessary in order to make the statements therein, in the
         light of the circumstances under which they were made, not misleading;
         provided that the Sellers make no representation or warranty as to
         information contained in the Offering Memorandum in reliance upon and
         in conformity with written information furnished to the Sellers by or
         on behalf of any Purchaser expressly for inclusion therein and
         identified in Section 6(b) hereof. The Company has not distributed and
         will not distribute, prior to the later of the Delivery Date and the
         completion of the Purchasers' distribution of the Securities, any
         offering material in connection with the offering and sale of the
         Securities other than the Offering Memorandum.

                  (b) The Company has been duly incorporated and is validly
         existing as a corporation in good standing under the laws of the State
         of Delaware, with full corporate power and authority to own, lease and
         operate its properties and conduct its business as presently conducted
         and as described in the Offering Memorandum and to enter into and
         perform its obligations under each of this Agreement, the Registration
         Rights Agreement, the DTC Letter of Representations, the Securities,
         the Exchange Securities, the Indenture, the Yorktown Asset Purchase
         Agreement, the New Revolving Credit Facility Agreement and the New
         Mortgage Loan Agreement and to redeem the 9-3/4% Notes in accordance
         with the terms and conditions of the 1993 Indenture. The Company is
         duly qualified as a foreign corporation to transact business and is in
         good standing in each jurisdiction in which such qualification is
         required, whether by reason of the ownership or leasing of property or
         the conduct of business, except where the failure to so qualify would
         not, singly or in the aggregate, have a Material Adverse Effect on the
         Company and its subsidiaries, taken as a whole. As used herein,
         "Material Adverse Effect," with respect to any person (which, for
         purposes of this Agreement, includes the Yorktown Refinery), means a
         material adverse effect on the assets, liabilities, results of
         operations, condition (financial or otherwise), earnings, business
         affairs or prospects, whether or not arising from transactions in the
         ordinary course of business, of such person and its subsidiaries, taken
         as a whole.

                  (c) The Subsidiary Guarantors are the only direct or indirect
         subsidiaries, whether wholly or partially owned, of the Company. Each
         of the Subsidiary Guarantors

                                       3
<PAGE>
         has been duly incorporated and is validly existing as a corporation in
         good standing under the laws of the jurisdiction of its incorporation,
         has corporate power and authority to own, lease and operate its
         properties and conduct its business as presently conducted and as
         described in the Offering Memorandum and to enter into and perform its
         obligations under each of this Agreement, the Registration Rights
         Agreement, the Securities, the Exchange Securities, the Indenture, the
         New Revolving Credit Facility Agreement and the New Mortgage Loan
         Agreement. Each of the Subsidiary Guarantors is duly qualified as a
         foreign corporation to transact business and is in good standing in
         each jurisdiction in which such qualification is required, whether by
         reason of the ownership or leasing of property or the conduct of
         business, except where the failure to so qualify would not, singly or
         in the aggregate, have a Material Adverse Effect on the Company. All
         the issued and outstanding capital stock of each such Subsidiary
         Guarantor has been duly authorized and validly issued, is fully paid
         and nonassessable and is owned by the Company or another Subsidiary
         Guarantor, free and clear of any security interest, mortgage, pledge,
         lien, charge or other encumbrance (each, a "Lien").

                  (d) The execution, delivery and performance by the Sellers of
         this Agreement, the Registration Rights Agreement, the DTC Letter of
         Representations and the Indenture, and the issuance and delivery of the
         Securities and the Exchange Securities and the consummation of the
         transactions contemplated herein and therein and in the Offering
         Memorandum have been duly authorized by all necessary corporate action
         and will not conflict with or constitute a breach of, or a default (or,
         with the giving of notice or lapse of time, would be a default)
         ("Default") or a Debt Repayment Triggering Event (as defined below)
         under, or the loss of any material benefit under, or the termination
         of, or result in the creation or imposition of any Lien upon any
         property or assets of any Seller pursuant to any contract, indenture,
         mortgage, loan agreement, note, lease, license or other instrument to
         which any Seller is a party or by which any of them may be bound
         (including, without limitation, the 1993 Indenture and the Indenture,
         dated as of August 26, 1997, for the Company's $150,000,000 of 9%
         Senior Subordinated Notes due 2007, as amended and supplemented) or to
         which any of the property or assets of any of them is subject (each, a
         "Contract"), except for such conflicts, breaches, Defaults, losses or
         Liens as would not, singly or in the aggregate, have a Material Adverse
         Effect on the Company, nor will such action result in any violation of
         the provisions of the charter or bylaws of any Seller or, subject to
         compliance by the Purchasers with Section 11, any applicable law,
         administrative regulation or administrative or court order or decree
         applicable to any Seller. Except such as have been obtained by the
         Sellers and are in full force and effect and such as may be required
         under applicable state securities or blue sky laws and except such as
         may be required by federal and state securities laws (including the
         Trust Indenture Act) with respect to the Sellers' obligations under the
         Registration Rights Agreement, no consent, approval, authorization or
         order of, or notice to or filing with, any United States federal or
         state governmental or regulatory agency or body or any court of the
         United States or of any state thereof is required for each Seller's
         execution, delivery and performance of this Agreement, the Registration
         Rights Agreement, the DTC Letter of Representations or the Indenture,
         or the issuance and delivery of the Securities or the Exchange
         Securities, or consummation of the transactions contemplated herein and

                                       4
<PAGE>
         therein and in the Offering Memorandum. As used herein, a "Debt
         Repayment Triggering Event" means any event or condition which gives,
         or with the giving of notice or lapse of time would give, the holder of
         any note, debenture or other evidence of indebtedness (or any person
         acting on such holder's behalf) the right to require the repurchase,
         redemption or repayment of all or a portion of such indebtedness by any
         Seller.

                  (e) This Agreement has been duly authorized, executed and
         delivered by each Seller. The Indenture has been duly authorized by
         each Seller and, at the Delivery Date, will have been duly executed and
         delivered by each Seller and, assuming due execution and delivery by
         the Trustee, will constitute a valid and legally binding agreement of
         each Seller, enforceable against each Seller in accordance with its
         terms, except to the extent that the enforceability thereof may be
         limited by (i) bankruptcy, insolvency, reorganization, moratorium,
         fraudulent transfer or other similar laws relating to creditors" rights
         generally and (ii) general principles of equity (regardless of whether
         such enforcement is considered in a proceeding in equity or at law) and
         an implied covenant of good faith and fair dealing. Each of the
         Registration Rights Agreement and the DTC Letter of Representations has
         been duly authorized by each Seller and, at the Delivery Date, will
         have been duly executed and delivered by each Seller and will
         constitute a valid and legally binding agreement of each Seller,
         enforceable against each Seller in accordance with its terms, except to
         the extent that the enforceability thereof may be limited by (i)
         bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer
         or other similar laws relating to creditors" rights generally and (ii)
         general principles of equity (regardless of whether such enforcement is
         considered in a proceeding in equity or at law) and an implied covenant
         of good faith and fair dealing and except as rights to indemnification
         under the Registration Rights Agreement may be limited by applicable
         law.

                  (f) The Notes are in the form contemplated by the Indenture,
         have been duly authorized for issuance and sale as contemplated by this
         Agreement, the Indenture and the Offering Memorandum and, on the
         Delivery Date, will have been duly executed by the Company and, when
         issued and authenticated in accordance with the terms of the Indenture,
         and delivered in the manner provided for in this Agreement against
         payment of the consideration therefor specified in the Offering
         Memorandum, will constitute valid and legally binding obligations of
         the Company, enforceable against the Company in accordance with their
         terms, and will be entitled to the benefits of the Indenture, except to
         the extent that the enforceability thereof may be limited by (i)
         bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer
         or other similar laws relating to creditors' rights generally and (ii)
         general principles of equity (regardless of whether such enforcement is
         considered in a proceeding in equity or at law) and an implied covenant
         of good faith and fair dealing. The Exchange Notes have been duly and
         validly authorized for issuance by the Company, and when issued and
         authenticated in accordance with the terms of the Indenture, the
         Registration Rights Agreement and the Exchange Offer, will constitute
         valid and legally binding obligations of the Company, enforceable
         against the Company in accordance with their terms, and will be
         entitled to the benefits of the

                                       5
<PAGE>
         Indenture, except to the extent that the enforceability thereof may be
         limited by (i) bankruptcy, insolvency, reorganization, moratorium,
         fraudulent transfer or other similar laws relating to creditors' rights
         generally and (ii) general principles of equity (regardless of whether
         such enforcement is considered in a proceeding in equity or at law) and
         an implied covenant of good faith and fair dealing.

                  (g) The Guarantees of the Notes and the Exchange Notes are in
         the respective forms contemplated by the Indenture, have been duly
         authorized for issuance as contemplated by this Agreement, the
         Indenture and the Offering Memorandum and, on the Delivery Date, will
         have been duly executed by each of the Subsidiary Guarantors and, when
         the Notes have been issued and authenticated in accordance with the
         terms of the Indenture and delivered against payment therefor, will
         constitute valid and legally binding obligations of the Subsidiary
         Guarantors, enforceable against each of the Subsidiary Guarantors in
         accordance with their terms, and will be entitled to the benefits of
         the Indenture, except to the extent that the enforceability thereof may
         be limited by (i) bankruptcy, insolvency, reorganization, moratorium,
         fraudulent transfer or other similar laws relating to creditors' rights
         generally and (ii) general principles of equity (regardless of whether
         such enforcement is considered in a proceeding in equity or at law) and
         an implied covenant of good faith and fair dealing.

                  (h) No Seller is in violation of its charter or bylaws and no
         Seller is in Default in the performance or observance of any
         obligation, agreement, covenant or condition contained in any Contract
         or any applicable law, administrative regulation or administrative or
         court order or decree, except for such defaults as would not, singly or
         in the aggregate, have a Material Adverse Effect on the Company.

                  (i) The Sellers possess such certificates, authorizations or
         permits issued by the appropriate regulatory or other governmental
         agencies or bodies as are necessary to conduct the business as now
         conducted by the Sellers and as described in the Offering Memorandum,
         each such certificate, authorization and permit being in full force and
         effect and each Seller is in compliance with the terms of each such
         certificate, authorization and permit, except where the failure to
         possess or comply with any such certificate, authorization or permit
         would not, singly or in the aggregate, have a Material Adverse Effect
         on the Company; and neither the Company nor any Subsidiary Guarantor
         has received any notice of proceedings relating to the revocation or
         modification of, or non-compliance with, any such certificate,
         authorization or permit which, singly or in the aggregate, if the
         subject of an unfavorable decision, ruling or finding, would have a
         Material Adverse Effect on the Company. The Company will, upon
         completion of the Yorktown Acquisition, possess such certificates,
         authorizations or permits issued by the appropriate regulatory or other
         governmental agencies or bodies as are necessary to conduct the
         business of the Yorktown Refinery as described in the Offering
         Memorandum, except where the failure to possess or comply with any such
         certificate, authorization or permit would not, singly or in the
         aggregate, have a Material Adverse Effect on the Yorktown Refinery.

                                       6
<PAGE>
                  (j) Deloitte & Touche LLP, the accountants who have audited
         and reported upon the financial statements of the Company and its
         subsidiaries and the related notes thereto, together with the
         supporting schedules, included in the Offering Memorandum, are
         independent public accountants with respect to the Company and its
         subsidiaries within the meaning of the Securities Act and the United
         States Securities Exchange Act of 1934, as amended (the "Exchange Act",
         which term, as used herein, includes the rules and regulations of the
         Commission promulgated thereunder).

                  (k) To the best of the Sellers' knowledge, Ernst & Young, LLP,
         the accountants who have audited and reported upon the financial
         statements of the business of the Yorktown Refinery and the related
         notes thereto included in the Offering Memorandum, are independent
         public accountants with respect to the Yorktown Refinery within the
         meaning of the Securities Act and the Exchange Act.

                  (l) The financial statements of the Company and its
         consolidated subsidiaries and the related notes thereto included in the
         Offering Memorandum present fairly the consolidated financial position
         of the Company and its consolidated subsidiaries as of the dates
         indicated and the results of their operations for the periods
         specified; such financial statements have been prepared in conformity
         with generally accepted accounting principles applied on a consistent
         basis throughout the periods involved. The financial statements of the
         business of the Yorktown Refinery and the related notes thereto
         included in the Offering Memorandum present fairly the financial
         position of the business of the Yorktown Refinery as of the dates
         indicated and the results of its operations for the periods specified;
         such financial statements have been prepared in conformity with
         generally accepted accounting principles applied on a consistent basis
         throughout the periods involved. The historical financial data set
         forth in the Offering Memorandum under the captions "Offering
         Memorandum Summary - Summary Historical and Unaudited Pro Forma
         Financial and Other Data" and "Selected Historical and Unaudited Pro
         Forma Financial and Other Data" fairly present the information set
         forth therein on a basis consistent with that of the audited financial
         statements contained in the Offering Memorandum. The pro forma
         financial statements of the Company and its subsidiaries and the
         related notes thereto included under the caption "Offering Memorandum
         Summary - Summary Historical and Unaudited Pro Forma Financial and
         Other Data", "Pro Forma Financial Statements" and elsewhere in the
         Offering Memorandum present fairly the information contained therein,
         have been prepared in accordance with the Commission's rules and
         guidelines with respect to pro forma financial statements and have been
         properly presented on the bases described therein, and the assumptions
         used in the preparation thereof are reasonable and the adjustments used
         therein are appropriate to give effect to the transactions and
         circumstances referred to therein.

                  (m) Since the respective dates as of which information is
         given in the Offering Memorandum, and except as otherwise stated
         therein, (i) there has been no material adverse change in the assets,
         liabilities, results of operations, condition (financial or otherwise),
         earnings, business affairs or prospects, whether or not arising from
         transactions in the ordinary course of business, of the Company and its
         subsidiaries, taken as a whole, and no material adverse change in the
         assets, liabilities, results of operations,

                                       7
<PAGE>
         condition (financial or otherwise), earnings, business affairs or
         prospects, whether or not arising from transactions in the ordinary
         course of business, of the Yorktown Refinery (any such change is called
         a "Material Adverse Change"), (ii) there has been no transaction
         entered into or material liability or obligation, direct, indirect or
         contingent, incurred by the Company or any subsidiary that is material
         to the Company and its subsidiaries, taken as a whole, and (iii) there
         has been no dividend declared, paid or made by the Company or, except
         for dividends paid to the Company or other subsidiaries, any of its
         subsidiaries on any class of its capital stock or repurchase or
         redemption by the Company or any of its subsidiaries of any class of
         capital stock.

                  (n) No registration of the Securities under the Securities Act
         and no qualification of an indenture under the United States Trust
         Indenture Act of 1939, as amended (the "Trust Indenture Act"), is
         required in connection with the offer, sale and delivery of the
         Securities to each Purchaser and to each Subsequent Purchaser in the
         manner contemplated by the Offering Memorandum and this Agreement
         (other than pursuant to the terms of the Registration Rights
         Agreement).

                  (o) No strike, work stoppage or other similar labor dispute
         with the employees of any Seller or at the Yorktown Refinery, or with
         the employees of any principal supplier of any Seller or the Yorktown
         Refinery, exists or, to the knowledge of any Seller, is threatened,
         which would have a Material Adverse Effect on the Company or the
         Yorktown Refinery, as the case may be.

                  (p) There is no action, suit or proceeding before or by any
         court or governmental agency or body now pending or, to the knowledge
         of any Seller, threatened against or affecting any Seller which is not
         disclosed in the Offering Memorandum, and which, if adversely
         determined, would result in a Material Adverse Effect on the Company,
         or would prevent or hinder the consummation of all the transactions
         contemplated by this Agreement.

                  (q) Except as otherwise disclosed in the Offering Memorandum
         or as would not, singly or in the aggregate, result in a Material
         Adverse Effect on the Company or the Yorktown Refinery, as the case may
         be, (i) none of the Sellers or the Yorktown Refinery is in violation of
         any federal, state, local or foreign law or regulation relating to
         pollution or protection of human health or the environment (including,
         without limitation, ambient air, surface water, groundwater, land
         surface or subsurface strata) or wildlife, including, without
         limitation, laws and regulations relating to emissions, discharges,
         releases or threatened releases of chemicals, pollutants, contaminants,
         wastes, toxic substances, hazardous substances, petroleum and petroleum
         products (collectively, "Materials of Environmental Concern"), or
         otherwise relating to the manufacture, processing, distribution, use,
         treatment, storage, disposal, transport or handling of Materials of
         Environmental Concern (collectively, "Environmental Laws"), which
         violation includes, but is not limited to, noncompliance with any
         permits or other governmental authorizations required for the operation
         of the business of any Seller or the Yorktown Refinery under applicable
         Environmental Laws, or noncompliance with the terms and conditions
         thereof, nor has any Seller received any written communication, whether
         from

                                       8
<PAGE>
         a governmental authority, citizens group, employee or otherwise, that
         alleges that such Seller or the Yorktown Refinery is in violation of
         any Environmental Law; (ii) there is no claim, action or cause of
         action filed with a court or governmental authority, nor investigation
         with respect to which any Seller has received written notice or
         involving the Yorktown Refinery, and no written notice by any person or
         entity alleging potential liability for investigatory costs, cleanup
         costs, governmental responses costs, natural resources damages,
         property damages, personal injuries, attorneys' fees or penalties
         arising out of, based on or resulting from the presence, or release
         into the environment, of any Material of Environmental Concern at any
         location owned, leased or operated by such Seller or at the Yorktown
         Refinery, now or in the past (collectively, "Environmental Claims"),
         pending, or, to the best of such Seller's knowledge, threatened or
         contemplated against such Seller or any person or entity whose
         liability for any Environmental Claim such Seller has retained or
         assumed either contractually or by operation of law; and (iii) to the
         best of each Seller's knowledge, there are no past or present actions,
         activities, circumstances, conditions, events or incidents, including,
         without limitation, the release, emission, discharge, presence or
         disposal of any Material of Environmental Concern, that reasonably
         could result in a violation of any Environmental Law or form the basis
         of a potential Environmental Claim against such Seller or against any
         person or entity whose liability for any Environmental Claim such
         Seller has retained or assumed either contractually or by operation of
         law.

                  (r) In the ordinary course of their business, the Sellers
         conduct a periodic review of the effect of Environmental Laws on their
         business, operations and properties, in the course of which they
         identify and evaluate associated costs and liabilities (including,
         without limitation, any capital or operating expenditures required for
         clean-up, closure of properties or compliance with Environmental Laws
         or any permit, license or approval, any related constraints on
         operating activities and any potential liabilities to third parties).
         On the basis of such review and the amount of their established
         reserves, the Sellers have reasonably concluded that such associated
         costs and liabilities would not, singly or in the aggregate, result in
         a Material Adverse Effect on the Company, except as otherwise disclosed
         in the Offering Memorandum.

                  (s) All necessary federal, state and foreign income and
         franchise tax returns required to be filed by any Seller have been
         filed, other than those filings being contested in good faith, and all
         material taxes, including withholding taxes, penalties and interest,
         assessments, fees and other charges due or claimed to be due from such
         entities have been paid, other than those being contested in good faith
         and for which adequate reserves have been provided or those currently
         payable without penalty or interest. The Company has made adequate
         charges, accruals and reserves in the applicable financial statements
         referred to in Section 1(l) above in respect of all federal, state and
         foreign income and franchise taxes for all periods as to which the tax
         liability of any Seller has not been finally determined.

                  (t) At December 31, 2001, on a consolidated basis, after
         giving pro forma effect to the issuance and sale of the Securities
         pursuant hereto and the Related Transactions, the Company would have an
         authorized and outstanding capitalization as

                                       9
<PAGE>
         set forth in the Offering Memorandum under the caption
         "Capitalization". All the issued and outstanding shares of the capital
         stock of the Company have been duly authorized and validly issued and
         are fully paid and non-assessable.

                  (u) The Notes, the Exchange Notes, the Guarantees of the Notes
         and the Exchange Notes and the Indenture will conform in all material
         respects to the respective statements relating thereto contained in the
         Offering Memorandum.

                  (v) No holder of any security of the Company has the right to
         have any security owned by such holder registered under the Securities
         Act by reason of the issue or sale of the Securities.

                  (w) Neither the Company nor any of its affiliates nor any
         person acting on their behalf has, within the six months prior to the
         date of this Agreement, offered or sold (regardless of whether such
         offers or sales constitute a distribution within the meaning of
         Regulation M under the Exchange Act) any Securities, any securities of
         the same class and/or series as the Securities, or any immediately
         convertible into or exchangeable for the Securities, nor will any such
         offers or sales be made without the prior written consent of the
         Purchasers at any time prior to the date that is 90 days after the
         completion of the offering of the Securities contemplated hereby. The
         Company has not taken and will not take, directly or indirectly, any
         action prohibited by Regulation M. The Company has not entered into any
         contractual arrangement which provides for the distribution of the
         Securities other than this Agreement.

                  (x) Neither the Company nor any of its affiliates nor any
         persons authorized to act on behalf of the Company or any such
         affiliates (other than the Purchasers or any person acting on their
         behalf as to whom the Sellers do not warrant or covenant) have engaged
         or will engage in any directed selling efforts (within the meaning of
         Regulation S) with respect to the Securities and the Company, each such
         affiliate and each person authorized by the Company to act on behalf of
         any of them has complied and will comply with any applicable offering
         restrictions requirement of Regulation S in connection with the
         offering of the Securities outside the United States and, in connection
         therewith, the Offering Memorandum will contain the disclosure required
         by Rule 902.

                  (y) Neither the Company nor any of its affiliates nor any
         person authorized by the Company to act on behalf of the Company or any
         such affiliates (other than the Purchasers or any person acting on
         their behalf as to whom the Sellers do not warrant or covenant) has
         offered or sold, or will offer or sell, the Securities by means of any
         form of general solicitation or general advertising (within the meaning
         of Rule 502(c) of Regulation D under the Securities Act), including,
         but not limited to, (i) any advertisement, article, notice or other
         communication published in any newspaper, magazine or similar medium or
         broadcast over television or radio or (ii) any seminar or meeting whose
         attendees have been invited by any general solicitation or general
         advertising.

                                       10
<PAGE>
                  (z) No securities of the same class (within the meaning of
         Rule 144A(d)(3) under the Securities Act) as the Securities are listed
         on any national securities exchange registered under Section 6 of the
         Exchange Act or quoted in a U.S. "automated inter-dealer quotation
         system" (as such term is used in Rule 144A(d)(3)).

                  (aa) The Company is not and will not after receipt of payment
         for the Securities be (i) an "investment company" or a company
         "controlled" by an investment company within the meaning of the United
         States Investment Company Act of 1940, as amended, (ii) a "holding
         company" or a "subsidiary company" of a holding company or an
         "affiliate" thereof within the meaning of the United States Public
         Utility Holding Company Act of 1935, as amended, or (iii) subject to
         regulation under the United States Federal Power Act or any federal or
         state statute or regulation limiting its ability to incur indebtedness
         for borrowed money.

                  (bb) The Company is not actively considering any plan or
         transaction that, if consummated, would result in any mandatory
         requirement to redeem, or make an offer to purchase, the Securities
         pursuant to the terms thereof.

                  (cc) The Company is a reporting issuer (within the meaning of
         Regulation S under the Securities Act).

                  (dd) The Sellers own or possess sufficient trademarks, trade
         names, copyrights, licenses, approvals, trade secrets and other similar
         rights (collectively, "Intellectual Property Rights") reasonably
         necessary to conduct their businesses as now conducted; and the
         expected expiration of any of such Intellectual Property Rights would
         not result in a Material Adverse Effect on the Company. None of the
         Sellers has received any notice of infringement or conflict with
         asserted Intellectual Property Rights of others, which infringement or
         conflict, if the subject of an unfavorable decision, would result in a
         Material Adverse Effect on the Company.

                  (ee) Each Seller has good and marketable title to all the
         properties and assets reflected as owned in the financial statements of
         the Company and its consolidated subsidiaries referred to in Section
         1(l) above (or elsewhere in the Offering Memorandum) and the Company or
         a subsidiary of the Company will, upon completion of the Yorktown
         Acquisition, obtain good and marketable title to all the properties and
         assets reflected as part of the business of the Yorktown Refinery in
         the financial statements of the business of the Yorktown Refinery
         referred to in Section 1(l) above (or elsewhere in the Offering
         Memorandum), in each case free and clear of any Liens, except for the
         Liens under the New Revolving Credit Facility Agreement and the New
         Mortgage Loan Agreement and such as do not materially and adversely
         affect the value of such property and do not materially interfere with
         the use made or proposed to be made of such property by such Seller.
         The real property, improvements, equipment and personal property held
         under lease by any Seller are held under valid and enforceable leases,
         with such exceptions as are not material and do not materially
         interfere with the use made or proposed to be made of such real
         property, improvements, equipment or personal property by such Seller.

                                       11
<PAGE>
                  (ff) Except as disclosed in the Offering Memorandum, each of
         the Sellers and the Yorktown Refinery is insured by recognized,
         financially sound institutions with policies in such amounts and with
         such deductibles and covering such risks as are generally deemed
         adequate and customary for its business including, but not limited to,
         policies covering real and personal property owned or leased by such
         Seller and the Yorktown Refinery against theft, damage, destruction,
         acts of vandalism and earthquakes. Except as disclosed in the Offering
         Memorandum, none of the Sellers has any reason to believe that it will
         not be able (i) to renew its existing insurance coverage as and when
         such policies expire or (ii) to obtain comparable coverage from similar
         institutions as may be necessary or appropriate to conduct its business
         as now conducted and at a cost that would not result in a Material
         Adverse Effect on the Company or the Yorktown Refinery, as the case may
         be. None of the Sellers has been denied any insurance coverage which it
         has sought or for which it has applied.

                  (gg) Each of the Sellers is, and immediately after the
         Delivery Date (after giving effect to the sale of the Securities and
         the application of the proceeds therefrom and the Related Transactions)
         will be, Solvent. As used herein, the term "Solvent" means, with
         respect to any Seller on a particular date, that on such date the fair
         market value of the assets of such Seller is greater than the total
         amount of liabilities (including contingent liabilities) of such
         Seller, (ii) the present fair salable value of the assets of such
         Seller is greater than the amount that will be required to pay the
         probable liabilities of such Seller on its debts as they become
         absolute and matured, (iii) such Seller is able to realize upon its
         assets and pay its debts and other liabilities, including contingent
         obligations, as they mature and (iv) such Seller does not have
         unreasonably small capital.

                  (hh) The Company maintains a system of accounting controls
         sufficient to provide reasonable assurances that (i) transactions are
         executed in accordance with management's general or specific
         authorization; (ii) transactions are recorded as necessary to permit
         preparation of financial statements in conformity with generally
         accepted accounting principles and to maintain accountability for
         assets; (iii) access to assets is permitted only in accordance with
         management's general or specific authorization; and (iv) the recorded
         accountability for assets is compared with existing assets at
         reasonable intervals and appropriate action is taken with respect to
         any differences.

                  (ii) The Sellers and any "employee benefit plan" (as defined
         under the Employee Retirement Income Security Act of 1974, as amended,
         and the regulations and published interpretations thereunder
         (collectively, "ERISA")) established or maintained (or, to the best of
         the Sellers' knowledge, required to be established or maintained in
         connection with the Yorktown Acquisition) by any Seller or their "ERISA
         Affiliates" (as defined below) are and will be in compliance in all
         material respects with ERISA. "ERISA Affiliate" means, with respect to
         any Seller, any member of any group of organizations described in
         Section 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986,
         as amended, and the regulations and published interpretations
         thereunder (the "Code") of which such Seller is a member. No
         "reportable event" (as defined under ERISA) has occurred or is
         reasonably expected to occur with respect to any "employee

                                       12
<PAGE>
         benefit plan" established or maintained (or, to the best of the
         Sellers' knowledge, required to be established or maintained in
         connection with the Yorktown Acquisition) by any Seller or any of their
         ERISA Affiliates. No "employee benefit plan" established or maintained
         (or, to the best of the Sellers' knowledge, required to be established
         or maintained in connection with the Yorktown Acquisition) by any
         Seller or any of their ERISA Affiliates, if such "employee benefit
         plan" were terminated, would have any "amount of unfunded benefit
         liabilities" (as defined in Title IV of ERISA), except for the amount
         of unfunded benefit liabilities, if any, as would not, singly or in the
         aggregate, have a Material Adverse Effect on the Company. None of the
         Sellers or any of their ERISA Affiliates has incurred or reasonably
         expects to incur any liability under (i) Title IV of ERISA with respect
         to termination of, or withdrawal from, any "employee benefit plan"
         (including, to the best of the Sellers' knowledge, any such plan
         required to be established or maintained in connection with the
         Yorktown Acquisition) or (ii) Sections 412, 4971, 4975 or 4980B of the
         Code. Each "employee benefit plan" established or maintained (or, to
         the best of the Sellers' knowledge, required to be established or
         maintained in connection with the Yorktown Acquisition) by any Seller
         or any of their ERISA Affiliates that is intended to be qualified under
         Section 401 of the Code is and will be so qualified and, to the best of
         the Sellers' knowledge, nothing has occurred, whether by action or
         failure to act, which would cause the loss of such qualification.

                  (jj) The Yorktown Asset Purchase Agreement has been duly
         authorized, executed and delivered by the Company and constitutes a
         valid and legally binding obligation of the Company, enforceable in
         accordance with its terms, except to the extent that the enforceability
         thereof may be limited by (i) bankruptcy, insolvency, reorganization,
         moratorium, fraudulent transfer or other similar laws now or hereafter
         in effect relating to creditors' rights generally and (ii) general
         principles of equity (regardless of whether such enforcement is
         considered in a proceeding in equity or at law) and an implied covenant
         of good faith and fair dealing. Each of the New Revolving Credit
         Facility Agreement and the New Mortgage Loan Agreement has been duly
         authorized by each Seller and, when duly executed and delivered by each
         Seller, will constitute valid and legally binding obligation of each
         Seller, enforceable in accordance with its terms, except to the extent
         that the enforceability thereof may be limited by (i) bankruptcy,
         insolvency, reorganization, moratorium, fraudulent transfer or other
         similar laws now or hereafter in effect relating to creditors' rights
         generally and (ii) general principles of equity (regardless of whether
         such enforcement is considered in a proceeding in equity or at law) and
         an implied covenant of good faith and fair dealing.

                  (kk) No event of default exists under any contract, indenture,
         mortgage, loan agreement, note, lease or other agreement or instrument
         constituting Senior Indebtedness (as defined in the Indenture).

                  Any certificate signed by an officer of a Seller and delivered
to the Purchasers or to counsel for the Purchasers shall be deemed to be a
representation and warranty by such Seller to each Purchaser as to the matters
set forth therein.

                                       13
<PAGE>
                  2. Purchase and Offering of the Securities. On the basis of
the representations and warranties contained in, and upon the terms and subject
to conditions of, this Agreement, the Sellers agree to issue and sell to the
Purchasers and the Purchasers agree, severally and not jointly, to purchase and
pay for the respective principal amounts of Securities set forth opposite the
name of the several Purchasers in Schedule A hereto at a purchase price of
94.1971% of the principal amount of the Securities. The sale of the Securities
to the Purchasers will be made without registration of the Securities under the
Securities Act, in reliance on the exemption therefrom provided by Section 4(2)
of the Securities Act.

                  3. Delivery and Payment. Payment of the purchase price for the
Securities shall be made by the Purchasers to the Sellers or their order in U.S.
dollars in same-day funds by 9:00 A.M., New York City time, on May 14, 2002 or
at such later date and time as may be determined by agreement between the
Sellers and the Purchasers. This date and time are sometimes referred to as the
"Delivery Date". Such payment shall be made against delivery of one or more
certificates in global or definitive form for the Securities in such
denominations and registered in such names as the Purchasers request upon notice
to the Company at least one business day prior to the Delivery Date.

                  4. Covenants. The Company and each Subsidiary Guarantor
jointly and severally agree as follows:

                  (a) The Company shall furnish promptly to each of the
         Purchasers a copy of the Offering Memorandum and each amendment and
         supplement thereto and shall deliver promptly to the Purchasers such
         number of copies of the Offering Memorandum and each amendment and
         supplement thereto as the Purchasers may reasonably request.

                  (b) If at any time prior to the completion, as determined by
         the Purchasers, of the distribution of the Securities, any event occurs
         as a result of which the Offering Memorandum would contain any untrue
         statement of a material fact or omit to state a material fact necessary
         in order to make the statements made therein, in the light of the
         circumstances under which they were made, not misleading, the Company
         will promptly so notify the Purchasers and will prepare and furnish at
         its own expense to the Purchasers, subject to Section 4(c), copies of
         such amendments or supplements to the Offering Memorandum as may be
         necessary so that the statements in the Offering Memorandum as so
         amended or supplemented will not contain any such untrue statement or
         omit to state any such material fact or be misleading and so that the
         Offering Memorandum, as so amended or supplemented, will comply with
         applicable law.

                  (c) Within a reasonable amount of time prior to any proposed
         publication of any amendment or supplement to the Offering Memorandum,
         the Company shall furnish a copy thereof to the Purchasers and shall
         not publish or use any such amendment or supplement to which the
         Purchasers or their counsel shall reasonably object.

                  (d) The Sellers shall comply with the terms of the Indenture
         and the Offering Memorandum and shall promptly notify the Purchasers if
         any of the Sellers discovers that any of its representations contained
         in this Agreement is not, at any time prior to the

                                       14
<PAGE>
         completion of the distribution of the Securities, true and correct, or
         if any of the Sellers has at any such time breached any of its
         obligations hereunder.

                  (e) If, at any time prior to two years after the Delivery Date
         when the Company is neither subject to Section 13 or 15(d) of the
         Exchange Act nor exempt from reporting pursuant to Rule 12g3-2(b) under
         the Exchange Act, the Sellers shall furnish, as soon as available, to
         the Purchasers, and, upon request of a holder of the Securities, to
         such holder and any prospective purchaser designated by such holder,
         copies of the information required to be delivered to holders and
         prospective purchasers of any Securities which constitute "restricted
         securities" under Rule 144 under the Securities Act in order to permit
         compliance with Rule 144A under the Securities Act.

                  (f) Neither the Company nor any of its affiliates will take,
         directly or indirectly, any action designed to or which constitutes or
         which might reasonably be expected to cause or result in stabilization
         or manipulation of the price of the Securities at any time prior to the
         Purchasers notifying the Company of the completion of the distribution
         of the Securities.

                  (g) The Sellers will endeavor to qualify the Securities for
         offer and sale under (or obtain exemptions from the application of) the
         securities or Blue Sky laws of such jurisdictions as the Purchasers
         shall reasonably request and to continue such qualification in effect
         so long as reasonably required for resale by the Purchasers of the
         Securities; provided that the Sellers shall not be required to (i)
         qualify generally to do business in any jurisdiction where it is not
         then so qualified or (ii) take any action that would subject it to
         general service of process or to taxation in any jurisdiction where it
         is not then so subject. The Sellers will advise the Purchasers promptly
         of the suspension of the qualification or registration of (or any such
         exemption relating to) the Securities for offering, sale or trading in
         any jurisdiction or any initiation or threat of any proceeding for any
         such purpose, and in the event of the issuance of any order suspending
         such qualification, registration or exemption, the Sellers shall use
         their best efforts to obtain the withdrawal thereof at the earliest
         possible moment.

                  (h) So long as any Securities or Exchange Securities are
         outstanding, the Company will promptly furnish to Banc of America
         Securities LLC copies of all reports or other communications (financial
         or other) furnished by the Company or the Trustee to holders of
         Securities, and copies of filings including financial statements
         furnished to or filed with the Commission or any national securities
         exchange by the Company.

                  (i) The Sellers will take all action that is appropriate or
         necessary to assure that its offerings of other securities will not be
         integrated, for purposes of the registration requirements of the
         Securities Act, with the offerings contemplated hereby.

                  (j) The Sellers shall use their best efforts to assist the
         Purchasers in arranging to cause the Securities to be eligible for
         settlement through the facilities of DTC.

                                       15
<PAGE>
                  (k) The Sellers shall, if requested by the Purchasers, use
         their best efforts to cause the Securities to be eligible for
         settlement through the facilities of Clearstream, societe anonyme
         ("Clearstream"), and the Euroclear System ("Euroclear").

                  (l) The Sellers shall apply the net proceeds from the sale of
         the Securities and the initial borrowings under the New Revolving
         Credit Facility Agreement and the New Mortgage Loan Agreement
         substantially in the manner described under the caption "Use of
         Proceeds" in the Offering Memorandum.

                  (m) Each certificate for a Security will bear the legend
         contained in "Notice to Investors" in the Offering Memorandum for the
         time period and upon the other terms stated in the Offering Memorandum.

                  (n) During the period of 180 days following the date of the
         Offering Memorandum, the Company will not, without the prior written
         consent of Banc of America Securities LLC (which consent may be
         withheld at the sole discretion of Banc of America Securities LLC),
         directly or indirectly, sell, offer, contract or grant any option to
         sell, pledge, transfer or establish an open "put equivalent position"
         within the meaning of Rule 16a-1 under the Exchange Act, or otherwise
         dispose of or transfer, or announce the offering of, or file any
         registration statement under the Securities Act in respect of, any debt
         securities of the Company similar to the Securities or securities
         exchangeable for or convertible into debt securities of the Company
         similar to the securities (other than as contemplated by this Agreement
         and to register the Exchange Securities).

                  5. Payment of Expenses. The Sellers jointly and severally
agree to pay all costs, fees and expenses incurred in connection with the
performance of their obligations hereunder and in connection with the
transactions contemplated hereby, including without limitation (i) all expenses
incident to the issuance and delivery of the Securities (including all printing
and engraving costs), (ii) all necessary issue, transfer and other stamp taxes
in connection with the issuance and sale of the Securities to the Purchasers,
(iii) all fees and expenses of the Sellers' respective counsel, independent
public or certified public accountants and other advisors, (iv) all costs and
expenses incurred in connection with the preparation, printing, filing, shipping
and distribution of the Offering Memorandum (including financial statements and
exhibits), and all amendments and supplements thereto, this Agreement, the
Registration Rights Agreement, the Indenture, the DTC Letter of Representations,
and the Notes and the Guarantees, (v) all filing fees, attorneys' fees and
expenses incurred by the Sellers or the Purchasers in connection with qualifying
or registering (or obtaining exemptions from the qualification or registration
of) all or any part of the Securities for offer and sale under the Blue Sky laws
and, if requested by the Purchasers, preparing and printing a "Blue Sky Survey"
or memorandum, and any supplements thereto, advising the Purchasers of such
qualifications, registrations and exemptions, (vi) the fees and expenses of the
Trustee, including the fees and disbursements of counsel for the Trustee in
connection with the Indenture, the Securities and the Exchange Securities, (vii)
any fees payable in connection with the rating of the Securities or the Exchange
Securities with the ratings agencies, (viii) any filing fees incident to, and
any reasonable fees and disbursements of counsel to the Purchasers in connection
with the review by the National Association of Securities Dealers, Inc., if any,
of the terms of the sale of the

                                       16
<PAGE>
Securities or the Exchange Securities, and (ix) all fees and expenses (including
reasonable fees and expenses of counsel) of the Sellers in connection with
approval of the Securities by DTC for "book-entry" transfer, and the performance
by the Sellers of their respective other obligations under this Agreement.

                  If this Agreement is terminated by the Purchasers pursuant to
Section 10(iv) or (v), or if the sale to the Purchasers of the Securities on the
Delivery Date is not consummated because of any refusal, inability or failure on
the part of any Seller to perform any agreement herein or to comply with any
provision hereof, the Sellers jointly and severally agree to reimburse the
Purchasers (or such Purchasers as have terminated this Agreement with respect to
themselves), severally, upon demand for all out-of-pocket expenses that shall
have been reasonably incurred by the Purchasers in connection with the proposed
purchase and the offering and sale of the Securities, including but not limited
to fees and disbursements of counsel, printing expenses, travel expenses,
postage, facsimile and telephone charges. If this Agreement is terminated by the
Purchasers pursuant to Section 10(i), (ii), (iii) or (vi), the Sellers jointly
and severally agree to reimburse the Purchasers (or such Purchasers as have
terminated this Agreement with respect to themselves), severally, upon demand
for all fees and disbursements of counsel and other advisors and printing
expenses that shall have been reasonably incurred by the Purchasers in
connection with the proposed purchase and the offering and sale of the
Securities. Except as provided in this Section 5, Section 6 and Section 7
hereof, the Purchasers shall pay their own expenses, including the fees and
disbursements of their counsel.

                  6. Indemnification.

                  (a) The Sellers jointly and severally agree to indemnify and
hold harmless each Purchaser, its directors, officers and employees, and each
person, if any, who controls any Purchaser within the meaning of the Securities
Act and the Exchange Act against any loss, claim, damage, liability or expense,
as incurred, to which such Purchaser or such controlling person may become
subject, under the Securities Act, the Exchange Act or other federal or state
statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written
consent of any Seller), insofar as such loss, claim, damage, liability or
expense (or actions in respect thereof as contemplated below) arises (i) out of
or is based upon any untrue statement or alleged untrue statement of a material
fact contained in any Offering Memorandum, or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; or
(ii) in whole or in part upon any inaccuracy in the representations and
warranties of the Sellers contained herein; or (iii) in whole or in part upon
any failure of any Seller to perform its obligations hereunder or under law; or
(iv) any act or failure to act or any alleged act or failure to act by any
Purchaser in connection with, or relating in any manner to, the offering
contemplated hereby, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon any matter
covered by clause (i) above, provided that the Sellers shall not be liable under
this clause (iv) to the extent that a court of competent jurisdiction shall have
determined by a final judgment that such loss, claim, damage, liability or
action resulted directly from any such acts or failures to act undertaken or
omitted to be taken by such Purchaser through its gross negligence or willful
misconduct; and to reimburse each Purchaser and each such controlling person for
any and all

                                       17
<PAGE>
expenses (including the fees and disbursements of counsel chosen by Banc of
America Securities LLC) as such expenses are reasonably incurred by such
Purchaser or such controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage,
liability, expense or action; provided, however, that the foregoing indemnity
agreement shall not apply to any loss, claim, damage, liability or expense to
the extent, but only to the extent, arising out of or based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in
reliance upon and in conformity with written information furnished to the
Company by the Purchasers expressly for use in any Offering Memorandum. The
indemnity agreement set forth in this Section 6(a) shall be in addition to any
liabilities that each Seller may otherwise have.

                  (b) Each Purchaser agrees, severally and not jointly, to
indemnify and hold harmless each Seller and each of its directors and each
person, if any, who controls such Seller within the meaning of the Securities
Act or the Exchange Act, against any loss, claim, damage, liability or expense,
as incurred, to which such Seller or any such director, or controlling person
may become subject, under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, or at common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written
consent of such Purchaser), insofar as such loss, claim, damage, liability or
expense (or actions in respect thereof as contemplated below) arises out of or
is based upon any untrue or alleged untrue statement of a material fact
contained in any Offering Memorandum, or arises out of or is based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in any
Offering Memorandum, in reliance upon and in conformity with written information
furnished to the Company by such Purchaser expressly for use therein; and to
reimburse such Seller or any such director or controlling person for any legal
and other expenses reasonably incurred by such Seller or any such director or
controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or
action. Each Seller hereby acknowledges that the only information that the
Purchasers have furnished to the Company expressly for use in any Offering
Memorandum are the statements set forth as the fourth paragraph on introductory
page iii of the Offering Memorandum concerning stabilization by the Purchasers
and in the fifth paragraph under the caption "Plan of Distribution" in the
Offering Memorandum; and the Purchasers confirm that such statements are
correct. The indemnity agreement set forth in this Section 6(b) shall be in
addition to any liabilities that each Purchaser may otherwise have.

                  (c) Promptly after receipt by an indemnified party under this
Section 6 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 6, notify the indemnifying party in writing of the
commencement thereof, but the omission so to notify the indemnifying party will
not relieve it from any liability which it may have to any indemnified party for
contribution or otherwise under the indemnity agreement contained in this
Section 6 or to the extent it is not prejudiced as a proximate result of such
failure. In case any such action is brought against any indemnified party and
such indemnified party seeks or intends to seek indemnity from an indemnifying
party, the indemnifying party will be entitled to participate in and, to the

                                       18
<PAGE>
extent that it shall elect, jointly with all other indemnifying parties
similarly notified, by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to
assume the defense thereof with counsel reasonably satisfactory to such
indemnified party; provided, however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that a conflict may arise
between the positions of the indemnifying party and the indemnified party in
conducting the defense of any such action or that there may be legal defenses
available to it and/or other indemnified parties which are different from or
additional to those available to the indemnifying party, the indemnified party
or parties shall have the right to select separate counsel to assume such legal
defenses and to otherwise participate in the defense of such action on behalf of
such indemnified party or parties. Upon receipt of notice from the indemnifying
party to such indemnified party of such indemnifying party's election so to
assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party
under this Section 6 for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (together with local counsel), approved by the indemnifying
party (Banc of America Securities LLC in the case of Section 6(b) and Section
7), representing the indemnified parties who are parties to such action) or (ii)
the indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

                  (d) The indemnifying party under this Section 6 shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party
against any loss, claim, damage, liability or expense by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time
an indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by Section
6(c) hereof, the indemnifying party agrees that it shall be liable for any
settlement of any proceeding effected without its written consent if such
settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request and (ii) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the
date of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement, compromise or consent
to the entry of judgment in any pending or threatened action, suit or proceeding
in respect of which any indemnified party is or could have been a party and
indemnity was or could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent includes an unconditional release
of such indemnified party from all liability on claims that are the subject
matter of such action, suit or proceeding.

                  7. Contribution. (i) If the indemnification provided for in
Section 6 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then each

                                       19
<PAGE>
indemnifying party shall contribute to the aggregate amount paid or payable by
such indemnified party, as incurred, as a result of any losses, claims, damages,
liabilities or expenses referred to therein in such proportion as is appropriate
to reflect the relative benefits received by the Sellers, on the one hand, and
the Purchasers, on the other hand, from the offering of the Securities pursuant
to this Agreement or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Sellers, on the one hand, and the Purchasers, on the other hand, in
connection with the statements or omissions or inaccuracies in the
representations and warranties herein which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative benefits received by the Sellers, on the one hand,
and the Purchasers, on the other hand, in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Sellers, and the total discount received by the Purchasers bear to the
aggregate initial offering price of the Securities. The relative fault of the
Sellers, on the one hand, and the Purchasers, on the other hand, shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact or any such inaccurate or alleged inaccurate
representation or warranty relates to information supplied by the Sellers, on
the one hand, or the Purchasers, on the other hand, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

                  The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include, subject to the limitations set forth in Section 6(c), any
legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions set forth in
Section 6(c) with respect to notice of commencement of any action shall apply if
a claim for contribution is to be made under this Section 7; provided, however,
that no additional notice shall be required with respect to any action for which
notice has been given under Section 6(c) for purposes of indemnification.

                  The Sellers and the Purchasers agree that it would not be just
and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation (even if the Purchasers were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 7.

                  Notwithstanding the provisions of this Section 7, no Purchaser
shall be required to contribute any amount in excess of the discount received by
such Purchaser in connection with the Securities distributed by it. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11 of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Purchasers' obligations to
contribute pursuant to this Section 7 are several, and not joint, in proportion
to their respective commitments as set forth opposite their names in Schedule A.
For purposes of this Section 7, each director, officer and employee of a
Purchaser and each person, if any, who controls a Purchaser within the meaning
of the Securities Act and the Exchange Act shall have the same

                                       20
<PAGE>
rights to contribution as such Purchaser, and each director of a Seller, and
each person, if any, who controls a Seller with the meaning of the Securities
Act and the Exchange Act shall have the same rights to contribution as such
Seller.

                  8. Conditions to Obligation of the Purchasers. The obligations
of the several Purchasers to purchase the Securities are subject to the
accuracy, when made and on the Delivery Date, of the representations and
warranties of the Sellers contained herein, to the performance by the Sellers of
their respective obligations hereunder to be performed at or prior to the
Delivery Date and to each of the following additional conditions:

                  (a) The Purchasers shall not have disclosed to the Company on
         or prior to the Delivery Date that the Offering Memorandum contains an
         untrue statement of a fact which, in the reasonable opinion of the
         Purchasers, is material or omits to state a fact which, in the
         reasonable opinion of the Purchasers, is material and is necessary in
         order to make the statements therein, in the light of the circumstances
         under which they were made, not misleading; the Company shall not have
         prepared and distributed any amendment or supplement to the Offering
         Memorandum either without prior review by, or over the reasonable
         objection of, the Purchasers; and no change shall have occurred in Rule
         144A or Regulation S under the Securities Act which in the reasonable
         judgment of the Purchasers makes it impracticable or inadvisable to
         proceed with the purchase, sale and delivery of the Securities on the
         terms and in the manner contemplated in the Offering Memorandum.

                  (b) All corporate proceedings and other legal matters incident
         to the authorization, form and validity of this Agreement, the
         Registration Rights Agreement, the DTC Letter of Representations, the
         Indenture, the Notes, the Exchange Notes, the Guarantees of the Notes
         and the Exchange Notes, the Offering Memorandum and all other legal
         matters relating to this Agreement and the transactions contemplated
         hereby and thereby shall be reasonably satisfactory in all respects to
         the Purchasers and their counsel, and each Seller shall have furnished
         to the Purchasers all documents and information that they may
         reasonably request to enable them to pass upon such matters.

                  (c) Each Seller shall have delivered to the Purchasers a
         certified copy of the resolutions of the Board of Directors (or any
         authorized committee thereof, together with the resolutions of the
         Board of Directors establishing such committee) of each Seller
         approving the creation and issue of the Notes, the Exchange Notes, the
         Guarantees of the Notes and the Exchange Notes, respectively, on the
         terms and conditions of the Indenture and this Agreement and approving
         the terms hereof and authorizing the execution and delivery of this
         Agreement, the Registration Rights Agreement, the DTC Letter of
         Representations, the Indenture, the Notes, the Exchange Notes, the
         Guarantees of the Notes and the Exchange Notes, and all other documents
         relevant to the issue of the Securities by such Seller.

                  (d) The Company shall have furnished to the Purchasers the
         opinion or opinions of Fennemore Craig, P.C., United States counsel to
         the Company, addressed to the Purchasers and dated the Delivery Date to
         the effect that:

                                       21
<PAGE>
                           (i) Each of this Agreement, the Indenture and the
                  Registration Rights Agreement has been duly authorized,
                  executed and delivered by each Seller.

                           (ii) The DTC Letter of Representations has been duly
                  authorized, executed and delivered by the Company.

                           (iii) The Notes are in the form contemplated by the
                  Indenture and have been duly authorized by all necessary
                  corporate action on the part of the Company and have been duly
                  executed by the proper officers of the Company.

                           (iv) The Exchange Notes have been duly and validly
                  authorized for issuance by the Company.

                           (v) The Guarantees of the Notes and the Exchange
                  Notes are in the respective forms contemplated by the
                  Indenture and have been duly authorized by all necessary
                  corporate action on the part of each of the Subsidiary
                  Guarantors and the Guarantees of the Notes have been duly
                  executed by the proper officers of each of the Subsidiary
                  Guarantors and duly delivered as contemplated by this
                  Agreement and by the Indenture.

                           (vi) The Securities and the Indenture conform in all
                  material respects to the respective statements relating
                  thereto contained in the Offering Memorandum and the forms of
                  the certificates used to evidence the Securities comply with
                  the requirements of the Securities Act, the Exchange Act and
                  the Trust Indenture Act.

                           (vii) Subject to compliance by the Purchasers with
                  Section 11 hereof, no authorization, consent or approval of,
                  or order by any administrative or governmental authority or
                  agency or, to the best of such counsel's knowledge, any court
                  is required by or on behalf of any Seller's execution,
                  delivery and performance of this Agreement, the Registration
                  Rights Agreement, the DTC Letter of Representations or the
                  Indenture, or the issuance and delivery of the Securities or
                  the Exchange Securities, or consummation of the transactions
                  contemplated herein and therein and in the Offering
                  Memorandum, except as may have been obtained by the Sellers
                  and are in full force and effect and such as may be required
                  under applicable securities or Blue Sky laws of any state of
                  the United States and except as may be required by federal and
                  state securities laws (including the Trust Indenture Act) with
                  respect to the Sellers' obligations under the Registration
                  Rights Agreement.

                           (viii) The statements in the Offering Memorandum
                  under the captions "Description of Other Debt", "Description
                  of the Notes", "Certain Federal Income Tax Consequences" and
                  "Notice to Investors", insofar as such statements constitute
                  summaries of legal matters, documents or legal proceeding
                  fairly present and summarize, in all material respects, the
                  matters referred to therein.

                                       22
<PAGE>
                           (ix) No registration of the Notes or the Guarantees
                  under the Securities Act and no qualification of an indenture
                  under the Trust Indenture Act is required in connection with
                  the purchase of the Securities by the Purchasers or the
                  initial resale of the Securities by the Purchasers to
                  Subsequent Purchasers in the manner contemplated by this
                  Agreement and the Offering Memorandum.

                           (x) The Company is not and will not as a result of
                  the offer and sale of the Securities be (i) an "investment
                  company" or a company "controlled" by an investment company
                  within the meaning of the United States Investment Company Act
                  of 1940, as amended, (ii) a "holding company" or a "subsidiary
                  company" of a holding company or an "affiliate" thereof within
                  the meaning of the United States Public Utility Holding
                  Company Act of 1935, as amended, or (iii) subject to
                  regulation under the United States Federal Power Act or any
                  federal or state statute or regulation limiting its ability to
                  incur indebtedness for borrowed money.

                  In addition, such counsel shall state that such counsel has
         participated in the preparation of the Offering Memorandum, including
         conferences with officers and other representatives of the Company and
         its subsidiaries, representatives of the independent public accountants
         of the Company and its subsidiaries and representatives of the
         Purchasers, at which conferences the contents of the confidential
         offering memorandum dated the date hereof and related matters were
         discussed and, although they are not passing upon the accuracy or
         completeness of the statements contained in the Offering Memorandum
         (except as specified in Section 8(d)(vi) and (viii) above), on the
         basis of the foregoing, nothing has come to the attention of such
         counsel which gives them reason to believe that such confidential
         offering memorandum, as of its date and at the Delivery Date (except as
         to the financial statements and financial data contained therein, as to
         which such counsel need express no opinion), contained or contains any
         untrue statement of a material fact or omitted or omits to state a
         material fact required to be stated therein or necessary to make the
         statements therein, in the light of circumstances in which made, not
         misleading.

                  The aforementioned opinion shall be limited to the federal
         laws of the United States of America, the laws of the State of Arizona
         and the general corporate law of the State of Delaware. Such counsel
         may state that insofar as the aforementioned opinion is indicated to be
         based on the best of such counsel's knowledge, such opinion is based
         upon such counsel's actual knowledge which the attorneys in such
         counsel's firm have obtained in connection with the representation of
         the Sellers. Such counsel may rely, to the extent they deem proper and
         specified in such opinion, on opinions (which shall be dated the
         Delivery Date and shall be satisfactory in form and substance to the
         Purchasers, shall expressly state that the Purchasers may rely on such
         opinion as if it were addressed to them and shall be furnished to the
         Purchasers) of local counsel reasonably satisfactory to the Purchasers
         with respect to matters of law of jurisdictions other than the federal
         laws of the United States of America, the laws of the State of Arizona
         and the general corporate law of the State of Delaware; provided,
         however, that such counsel shall further state that they believe that
         they and the Purchasers are justified in relying upon such

                                       23
<PAGE>
         opinion of other counsel, and as to matters of fact, to the extent they
         deem proper, on certificates of responsible officers of any Seller and
         public officials.

                  (e) The Company shall have furnished to the Purchasers the
         opinion or opinions of McGuireWoods, LLP, special counsel to the
         Company, addressed to the Purchasers and dated the Delivery Date to the
         effect that:

                           (i) The Indenture constitutes the legal, valid and
                  binding agreement of each Seller, enforceable against each
                  Seller in accordance with its terms, except to the extent that
                  the enforceability thereof may be limited by (A) bankruptcy,
                  insolvency, fraudulent conveyance, reorganization, moratorium,
                  fraudulent transfer or other laws relating to creditors'
                  rights generally and (B) general principles of equity
                  (regardless of whether such enforcement is considered in a
                  proceeding in equity or at law) and an implied covenant of
                  good faith and fair dealing.

                           (ii) The Registration Rights Agreement constitutes
                  the legal, valid and binding agreement of each Seller,
                  enforceable against each Seller in accordance with its terms,
                  except to the extent that the enforceability thereof may be
                  limited by (A) bankruptcy, insolvency, fraudulent conveyance,
                  reorganization, moratorium, fraudulent transfer or other laws
                  relating to creditors' rights generally and (B) general
                  principles of equity (regardless of whether such enforcement
                  is considered in a proceeding in equity or at law) and an
                  implied covenant of good faith and fair dealing and except as
                  rights to indemnification may be limited by applicable law.

                           (iii) The DTC Letter of Representations constitutes
                  the legal, valid and binding agreement of the Company,
                  enforceable against the Company in accordance with its terms,
                  except to the extent that the enforceability thereof may be
                  limited by (A) bankruptcy, insolvency, fraudulent conveyance,
                  reorganization, moratorium, fraudulent transfer or other laws
                  relating to creditors' rights generally and (B) general
                  principles of equity (regardless of whether such enforcement
                  is considered in a proceeding in equity or at law) and an
                  implied covenant of good faith and fair dealing.

                           (iv) The Notes are in the form contemplated by the
                  Indenture and, assuming the Notes have been duly authenticated
                  by the Trustee and delivered as contemplated by this Agreement
                  and by the Indenture, and delivered in the manner provided for
                  in this Agreement against payment of the consideration
                  therefor specified in the Offering Memorandum, constitute
                  valid and binding obligations of the Company, enforceable
                  against the Company in accordance with their terms, and
                  entitled to the benefits of the Indenture, except to the
                  extent that the enforceability thereof may be limited by (A)
                  bankruptcy, insolvency, fraudulent conveyance, reorganization,
                  moratorium, fraudulent transfer or other laws relating to
                  creditors' rights generally and (B) general principles of
                  equity

                                       24
<PAGE>
                  (regardless of whether such enforcement is considered in a
                  proceeding in equity or at law) and an implied covenant of
                  good faith and fair dealing.

                           (v) The Exchange Notes, when issued and authenticated
                  in accordance with the terms of the Indenture, the
                  Registration Rights Agreement and the Exchange Offer, will
                  constitute valid and binding obligations of the Company,
                  enforceable against the Company in accordance with their
                  terms, and will be entitled to the benefits of the Indenture,
                  except to the extent that the enforceability thereof may be
                  limited by (A) bankruptcy, insolvency, fraudulent conveyance,
                  reorganization, moratorium, fraudulent transfer or other laws
                  relating to creditors' rights generally and (B) general
                  principles of equity (regardless of whether such enforcement
                  is considered in a proceeding in equity or at law) and an
                  implied covenant of good faith and fair dealing.

                           (vi) The Guarantees of the Notes are in the forms
                  contemplated by the Indenture. The Guarantees of the Notes
                  constitute, and the Guarantees of the Exchange Notes will
                  constitute, valid and legally binding obligations of the
                  Subsidiary Guarantors, enforceable in accordance with their
                  terms, and will be entitled to the benefits of the Indenture,
                  except to the extent that the enforceability thereof may be
                  limited by (A) bankruptcy, insolvency, fraudulent conveyance,
                  reorganization, moratorium, fraudulent transfer or other laws
                  relating to creditors' rights generally and (B) general
                  principles of equity (regardless of whether such enforcement
                  is considered in a proceeding in equity or at law) and an
                  implied covenant of good faith and fair dealing.

                  The aforementioned opinion shall be limited to the laws of the
                  State of New York.

                  (f) The Company shall have furnished to the Purchasers the
         opinion or opinions of Kim H. Bullerdick, Esq., General Counsel of the
         Company, addressed to the Purchasers and dated the Delivery Date to the
         effect that:

                           (i) The Company has been duly incorporated and is
                  validly existing as a corporation in good standing under the
                  laws of the State of Delaware; has the corporate power and
                  authority to own, lease and operate its properties and to
                  conduct its business as presently conducted and as described
                  in the Offering Memorandum and to enter into and perform its
                  obligations under each of this Agreement, the Registration
                  Rights Agreement, the DTC Letter of Representations, the
                  Securities, the Exchange Securities, the Indenture, the
                  Yorktown Asset Purchase Agreement, the New Revolving Credit
                  Facility Agreement and the New Mortgage Loan Agreement and to
                  redeem the 9-3/4% Notes in accordance with the terms and
                  conditions of the 1993 Indenture; and is duly qualified as a
                  foreign corporation to transact business and is in good
                  standing in each jurisdiction in which such qualification is
                  required, whether by reason of the ownership or leasing of
                  property or the conduct of business, except where the failure
                  to so qualify would not have a Material Adverse Effect on the
                  Company.

                                       25
<PAGE>
                           (ii) Each Subsidiary Guarantor has been duly
                  incorporated and is validly existing as a corporation in good
                  standing under the laws of the jurisdiction of its
                  incorporation; has the corporate power and authority to own,
                  lease and operate its properties and conduct its business as
                  presently conducted and as described in the Offering
                  Memorandum and to enter into and perform its obligations under
                  each of this Agreement, the Registration Rights Agreement, the
                  DTC Letter of Representations, the Securities, the Exchange
                  Securities, the Indenture, the New Revolving Credit Facility
                  Agreement and the New Mortgage Loan Agreement to which it is a
                  party; and is duly qualified as a foreign corporation to
                  transact business and is in good standing in each jurisdiction
                  in which such qualification is required, whether by reason of
                  the ownership or leasing of property or the conduct of
                  business, except where the failure to so qualify would not
                  have a Material Adverse Effect on the Company. All the issued
                  and outstanding capital stock of each Subsidiary Guarantor has
                  been duly authorized and validly issued, is fully paid and
                  nonassessable and is owned, directly or indirectly, by the
                  Company, and, to the knowledge of such counsel, free and clear
                  of any Lien.

                           (iii) The descriptions in the Offering Memorandum of
                  statutes, legal and governmental proceedings, contracts and
                  other documents are accurate and fairly present the
                  information which, to such counsel's knowledge, is required to
                  be shown; and such counsel does not know of any statutes or
                  legal or governmental proceedings required to be described in
                  the Offering Memorandum that are not described as required, or
                  of any contracts or documents of a character required to be
                  described in the Offering Memorandum that are not described as
                  required.

                           (iv) To the best of such counsel's knowledge, neither
                  the Company nor any Subsidiary Guarantor is in violation of
                  its charter or bylaws, and to the best of such counsel's
                  knowledge, neither the Company nor any Subsidiary Guarantor is
                  in Default in the performance or observance of any obligation,
                  agreement, covenant or condition contained in any Contract or
                  any applicable law, administrative regulation or
                  administrative or court order or decree, which violation or
                  default would, singly or in the aggregate, have a Material
                  Adverse Effect on the Company.

                           (v) The issuance and delivery of the Notes, the
                  Exchange Notes and the Guarantees of the Notes and the
                  Exchange Notes, the execution and delivery of this Agreement,
                  the Registration Rights Agreement, the DTC Letter of
                  Representations, the Indenture, the Yorktown Asset Purchase
                  Agreement, the New Revolving Credit Facility Agreement and the
                  New Mortgage Loan Agreement and the consummation of the
                  transactions contemplated herein and therein will not conflict
                  with or constitute a breach of, or Default or a Debt Repayment
                  Triggering Event under, or result in the creation or
                  imposition of any Lien upon any material property or assets of
                  the Company or any Subsidiary Guarantor pursuant to any
                  material Contract, which conflict, breach, Default, Debt

                                       26
<PAGE>
                  Repayment Triggering Event or Lien would, singly or in the
                  aggregate, have a Material Adverse Effect on the Company.

                           (vi) The issuance and delivery of the Notes, the
                  Exchange Notes and the Guarantees of the Notes and the
                  Exchange Notes, the execution and delivery of this Agreement,
                  the Registration Rights Agreement, the DTC Letter of
                  Representations, the Indenture, the Yorktown Asset Purchase
                  Agreement, the New Revolving Credit Facility Agreement and the
                  New Mortgage Loan Agreement and the consummation of the
                  transactions contemplated herein and therein will not result
                  in a violation of the provisions of the charter or bylaws of
                  the Company or any Subsidiary Guarantor or, to the best of
                  such counsel's knowledge, any material applicable law,
                  administrative regulation, administrative or court order or
                  decree.

                  In addition, such counsel shall state that such counsel has
         reviewed the sections of the Offering Memorandum under the captions
         "Risk Factors", "Management's Discussion and Analysis of Financial
         Condition and Results of Operations - Liquidity and Capital Resources -
         Environmental and Other", "Business - Legal Proceedings" and "Related
         Party Transactions", and, on the basis of such review, to the best of
         such counsel's knowledge, such sections of the Offering Memorandum, as
         of the date of the Offering Memorandum and at the Delivery Date, did
         not contain any untrue statement of a material fact or omit to state a
         material fact required to be stated therein or necessary to make the
         statements therein, in the light of the circumstances in which made,
         not misleading. The aforementioned opinion shall be limited to the
         federal laws of the United States of America, the laws of the State of
         Arizona and the corporate law of the State of Delaware. Such counsel
         may state that insofar as the aforementioned opinion is indicated to be
         based on the best of such counsel's knowledge, such opinion is based
         upon such counsel's actual knowledge. Such counsel may rely, to the
         extent he deems proper and specified in such opinion, on opinions
         (which shall be dated the Delivery Date and shall be satisfactory in
         form and substance to the Purchasers, shall expressly state that the
         Purchasers may rely on such opinion as if it were addressed to them and
         shall be furnished to the Purchasers) of local counsel satisfactory to
         the Purchasers with respect to matters of law of jurisdictions other
         than the federal laws of the United States of America, the laws of the
         State of New York, the laws of the State of Arizona and the general
         corporate law of the State of Delaware; provided, however, that such
         counsel shall further state that he believes that he and the Purchasers
         are justified in relying upon such opinion of other counsel, and as to
         matters of fact, to the extent they deem proper, on certificates of
         responsible officers of any Seller and public officials. Such counsel
         may rely on certificates of good standing and foreign qualification
         from appropriate state officials with respect to opinions regarding
         good standing and foreign qualification.

                  (g) Each Seller shall have furnished to the Purchasers on the
         Delivery Date a certificate, dated the Delivery Date, of the President
         or a Vice President and the principal financial or accounting officer
         of the Company stating that (i) for the period from and after the date
         of this Agreement and prior to the Delivery Date there has not occurred
         any Material Adverse Change; (ii) the representations and warranties of
         the Sellers in Section

                                       27
<PAGE>
         1 are true and correct as of the Delivery Date; (iii) the Sellers have
         complied with all the agreements and satisfied all the conditions on
         their part to be performed or satisfied at or prior to the Delivery
         Date; (iv) all the agreements and conditions for the closing of the
         Yorktown Acquisition have been performed or satisfied at or prior to
         the Delivery Date; and (v) there shall not have occurred any
         downgrading, nor shall any notice have been given of any intended or
         potential downgrading or of any review for a possible change that does
         not indicate the direction of the possible change, in the rating
         accorded any securities of the Company or any of its subsidiaries by
         any "nationally recognized statistical rating organization" as such
         term is defined for purposes of Rule 436 under the Securities Act.

                  (h) The Company shall have furnished to the Purchasers on the
         Delivery Date a certificate, dated the Delivery Date, of the principal
         financial or accounting officer of the Company stating that the Total
         Leverage Ratio and the Senior Leverage Ratio (each as defined in the
         New Revolving Credit Facility Agreement), based on the pro forma
         financial statements of the Company giving effect to the offering of
         the Securities and the Related Transactions prepared in accordance with
         the requirements of Regulation S-X under the Securities Act and all
         other accounting rules and regulations of the Commission promulgated
         thereunder, was not greater than the respective ratios set forth in the
         New Revolving Credit Facility Agreement.

                  (i) The Company shall have furnished to the Purchasers on the
         date hereof a letter of Deloitte & Touche LLP, independent public
         accountants for the Company, addressed to the Purchasers and dated the
         date hereof, in form and substance reasonably satisfactory to the
         Purchasers, containing statements and information of the type
         ordinarily included in accountant's "comfort letters" to initial
         purchasers, delivered according to Statement of Auditing Standards Nos.
         72 and 76 (or any successor bulletins), with respect to the Company's
         audited financial statements and unaudited pro forma financial
         statements and certain financial information contained in the Offering
         Memorandum.

                  (j) The Company shall have furnished to the Purchasers on the
         Delivery Date, a letter of Deloitte & Touche LLP, independent public
         accountants for the Company, addressed to the Purchasers and dated the
         Delivery Date, in form and substance reasonably satisfactory to the
         Purchasers, to the effect that they reaffirm the statements made in the
         letter furnished by them pursuant to Section 8(i), except that the
         specified date referred to therein for the carrying out of procedures
         shall be no more than three business days prior to the Delivery Date.

                  (k) The Company shall have furnished to the Purchasers on the
         date hereof, a letter of Ernst & Young LLP, independent public
         accountants for the Yorktown Refinery, addressed to the Purchasers and
         dated the date hereof, in form and substance reasonably satisfactory to
         the Purchasers, containing statements and information of the type
         ordinarily included in accountant's "comfort letters" to initial
         purchasers, delivered according to Statement of Auditing Standards Nos.
         72 and 76 (or any successor bulletins),

                                       28
<PAGE>
         with respect to the audited financial statements related to the
         Yorktown refinery and certain financial information contained in the
         Offering Memorandum.

                  (l) The Company shall have furnished to the Purchasers on the
         Delivery Date, a letter of Ernst & Young LLP, independent public
         accountants for the Yorktown Refinery, addressed to the Purchasers and
         dated the Delivery Date, in form and substance reasonably satisfactory
         to the Purchasers, to the effect that they reaffirm the statements made
         in the letter furnished by them pursuant to Section 8(k), except that
         the specified date referred to therein for the carrying out of
         procedures shall be no more than three business days prior to the
         Delivery Date.

                  (m) The Purchasers shall have received the opinion of Shearman
         & Sterling, their counsel, dated as of the Delivery Date, with respect
         to such matters as the Purchasers may reasonably request.

                  (n) The Securities shall have been accepted for (i) settlement
         through the facilities of DTC, and (ii) if applicable, settlement
         through the facilities of Clearstream and Euroclear.

                  (o) The Sellers shall have furnished to the Purchasers such
         further certificates and documents, including certificates of officers
         of the Subsidiary Guarantors, as the Purchasers shall have reasonably
         requested.

                  (p) The Sellers shall have executed and delivered the
         Registration Rights Agreement.

                  (q) Each of the New Revolving Credit Facility Agreement and
         the New Mortgage Loan Agreement shall have been executed and delivered
         by the Company and each lender thereunder, and shall be in full force
         and effect and all conditions to the initial borrowings thereunder
         shall have been satisfied other than the closing of the offering and
         sale of the Securities and the Yorktown Acquisition.

                  (r) Concurrently with the closing of this offering, the
         Company shall have given the requisite notices for the redemption of
         the 9-3/4% Notes in accordance with the terms and conditions of the
         1993 Indenture.

                  (s) Concurrently with the closing of this offering, the
         Related Transactions shall have been consummated on terms and
         conditions reasonably acceptable to the Purchasers.

                  All opinions (other than the opinion set forth in Section 8(m)
above), letters, evidences and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if
they are in form and substance reasonably satisfactory to Shearman & Sterling,
counsel to the Purchasers.

                  9. Stabilization. The Purchasers may, at their discretion, to
the extent permitted by applicable law, make purchases and sales of the
Securities for their own accounts in

                                       29
<PAGE>
the open market or otherwise for long or short account, on such terms as they
deem advisable in connection with the distribution of the Securities, with a
view to stabilizing or maintaining the market price of the Securities at a level
other than that which might otherwise prevail on the open market. Such
transactions, if commenced, may be discontinued at any time. In such
circumstances, as between the Sellers, on the one hand, and the Purchasers, on
the other hand, the Purchasers shall act as principal, and any loss resulting
from stabilization shall be borne, and any profit arising therefrom and any sum
received by it shall be beneficially retained, by the Purchasers for their own
account.

                  10. Termination. Prior to the Delivery Date, this Agreement
may be terminated by the Purchasers by notice given to the Company if at any
time after the date of this Agreement (i) trading or quotation in any of the
Company's securities shall have been suspended or limited by the Commission or
by the NYSE, or trading in securities generally on either the Nasdaq Stock
Market or the NYSE shall have been suspended or limited, or minimum or maximum
prices shall have been generally established on any of such stock exchanges by
the Commission or the National Association of Securities Dealers, Inc.; (ii) a
general banking moratorium shall have been declared by any of federal, New York,
Washington or California authorities; (iii) there shall have occurred any
outbreak or escalation of national or international hostilities or any crisis or
calamity, or any change in the United States or international financial markets,
or any substantial change or development involving a prospective substantial
change in United States' or international political, financial or economic
conditions, as in the judgment of the Purchasers is material and adverse and
makes it impracticable to market the Securities in the manner and on the terms
described in the Offering Memorandum or to enforce contracts for the sale of
securities; (iv) in the judgment of the Purchasers there shall have occurred any
Material Adverse Change; (v) the Company or any of its subsidiaries shall have
sustained a loss by strike, fire, flood, earthquake, accident or other calamity
of such character as in the judgment of the Purchasers may interfere materially
with the conduct of the business and operations of the Company and its
subsidiaries regardless of whether or not such loss shall have been insured; or
(vi) there shall have occurred a material disruption in commercial banking or
securities settlement or clearance services in the United States. Any
termination pursuant to this Section 10 shall be without liability on the part
of (a) any Seller to any Purchaser, except that the Sellers shall be obligated
to reimburse the expenses of the Purchasers pursuant to Section 5 hereof, (b)
any Purchaser to any Seller, or (c) any party hereto to any other party except
that the provisions of Section 6 and Section 7 shall at all times be effective
and shall survive such termination.

                  11. Representations, Warranties and Agreements of the
Purchasers. Each Purchaser severally represents, warrants and agrees that:

                  (a) The Purchasers understand that the Securities have not
         been and will not be registered under the Securities Act, and the
         Securities have not been and will not be offered or sold by a Purchaser
         or its affiliates or persons acting on its behalf except in accordance
         with Regulation S under the Securities Act or pursuant to an exemption
         from the registration requirements of the Securities Act. The
         Purchasers have offered and sold the Securities and will offer and sell
         the Securities, (i) as part of their distribution at any time and (ii)
         otherwise until 40 days after the later of the commencement of the
         offering of the Securities and the Delivery Date (the "restricted
         period"), only in accordance with

                                       30
<PAGE>
         the provisions of Regulation S or Rule 144A under the Securities Act.
         Accordingly, no Purchaser, nor their affiliates nor any persons acting
         on their behalf has engaged or will engage in any directed selling
         efforts with respect to the Securities, and they have complied and will
         comply with any applicable offering restrictions requirement of
         Regulation S with respect to the Securities. Each Purchaser will have
         sent, at or prior to confirmation of sale of Securities pursuant to
         Regulation S, to each distributor, dealer or person receiving a selling
         concession, fee or other remuneration in respect of the Securities from
         it during the restricted period a confirmation or notice to
         substantially the following effect:

                           "The Securities covered hereby have not been
                  registered under the United States Securities Act of 1933, as
                  amended (the "Securities Act"), and may not be offered or sold
                  within the United States or to, or for the account or benefit
                  of, United States persons (i) as part of their distribution at
                  any time or (ii) otherwise until 40 days after the later of
                  the commencement of the offering and the closing date, except
                  in either case in accordance with Regulation S or Rule 144A
                  under the Securities Act. Terms used in this paragraph have
                  the meanings given to them by Regulation S."

         Terms used in this paragraph (a) have the meanings given to them by
         Regulation S.

                  (b) No Purchaser will offer or sell the Securities in the
         United States by means of any form of general solicitation or general
         advertising within the meaning of Section 502(c) under the Securities
         Act; provided, however, that such limitation shall not preclude the
         placing of any customary tombstone advertisement with respect to the
         resale of the Securities following the expiration of the restricted
         period. With respect to resales made in reliance on Rule 144A of any of
         the Securities, each Purchaser will deliver either with the
         confirmation of such resale or otherwise prior to settlement of such
         resale a notice to the effect that the resale of such Securities has
         been made in reliance upon the exemption from the registration
         requirements of the Securities Act provided by Rule 144A.

                  (c) Each Purchaser represents, warrants and agrees that:

                           (i) it has not offered or sold and, prior to the
                  expiry of the period of six months from the issue date of the
                  Securities, will not offer or sell any Securities in the
                  United Kingdom except to persons whose ordinary activities
                  involve them in acquiring, holding, managing or disposing of
                  investments (as principal or agent) for the purposes of their
                  businesses or otherwise in circumstances which have not
                  resulted and will not result in an offer to the public in the
                  United Kingdom within the meaning of the Public Offers of
                  Securities Regulations 1995 (as amended);

                           (ii) it has only communicated or caused to be
                  communicated and will only communicate or cause to be
                  communicated an invitation or inducement to engage in
                  investment activity (within the meaning of Section 21 of the
                  Financial

                                       31
<PAGE>
                  Services and Markets Act 2000 (the "FSMA") received by it in
                  connection with the issue or sale of any Securities in
                  circumstances in which Section 21(1) of the FSMA does not
                  apply to the Issuer; and

                           (iii) it has complied and will comply with all
                  applicable provisions of the FSMA with respect to anything
                  done by it in relation to the Securities in, from or otherwise
                  involving the United Kingdom.

                  Following the sale of the Securities by the Purchasers to
Subsequent Purchasers pursuant to the terms hereof, the Purchasers shall not be
liable or responsible to any Seller for any losses, damages or liabilities
suffered or incurred by any Seller, including any losses, damages or liabilities
under the Securities Act, arising from or relating to any resale or transfer of
any Security.

                  The Sellers acknowledge and agree that the Purchasers may,
subject to the provisions of this Section 11, offer Securities to other brokers
and dealers for resale by such brokers and dealers.

                  12. Survival of Representations, Warranties and Agreements.
The representations, warranties and agreements and other statements of any
person set forth in or made pursuant to this Agreement shall survive the
delivery of and payment for the Securities and shall remain in full force and
effect as made on the Delivery Date regardless of any investigation made by or
on behalf of any person referred to in Section 6. The provisions of Section 5,
Section 6 and Section 7 shall survive the termination or cancellation of this
Agreement.

                  13. Notices. Any notice or notification in any form to be
given hereunder shall be in writing and shall be delivered in person or sent by
telephone or facsimile transmission (but in the case of a notification by
telephone, with subsequent confirmation by letter or facsimile transmission).
Any notice or notification to the Company or any Subsidiary Guarantor shall be
addressed to or in care of the Company at:

                  Giant Industries, Inc.
                  23733 North Scottsdale Road
                  Scottsdale, Arizona  85255
                  Attention:  General Counsel
                  Fax:  (602) 585-8985

Any notice or notification to the Purchasers shall be addressed to it or them
at:

                  c/o Banc of America Securities LLC
                  9 West 57th Street
                  New York, New York 10019
                  Attention:  Capital Markets Transaction Management
                  Fax:  (212) 847-6442

Any notice or notification shall take effect at the time of receipt.

                                       32
<PAGE>
                  14. Benefit. This Agreement shall be binding upon the
Purchasers, the Sellers and their respective successors. This Agreement and the
terms and provisions hereof are for the sole benefit of only those persons,
except that (a) the representations, warranties, indemnities and agreements of
the Sellers contained in this Agreement shall also be deemed to be for the
benefit of each person referred to in Section 6(a) hereof, and (b) the
representations, warranties, indemnities and agreements of the Purchasers
contained in Section 11 hereof shall be deemed to be for the benefit of each
person referred to in Section 6(b) hereof. Nothing in this Agreement is intended
or shall be construed to give any person, other than the persons referred to in
this Section 14, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. This Agreement
shall not be assigned by any party hereto without the prior written consent of
the other parties hereto.

                  15. Default of One or More of the Several Purchasers. If any
one or more of the several Purchasers shall fail or refuse to purchase
Securities that it or they have agreed to purchase hereunder on the Delivery
Date, and the aggregate number of Securities which such defaulting Purchaser or
Purchasers agreed but failed or refused to purchase does not exceed 10% of the
aggregate number of the Securities to be purchased on such date, the other
Purchasers shall be obligated, severally, in the proportions that the number of
Securities set forth opposite their respective names on Schedule A bears to the
aggregate number of Securities set forth opposite the names of all such
non-defaulting Purchasers, or in such other proportions as may be specified by
the Purchasers with the consent of the non-defaulting Purchasers, to purchase
the Securities which such defaulting Purchaser or Purchasers agreed but failed
or refused to purchase on such date. If any one or more of the Purchasers shall
fail or refuse to purchase Securities and the aggregate number of Securities
with respect to which such default occurs exceeds 10% of the aggregate number of
Securities to be purchased on the Delivery Date, and arrangements satisfactory
to the Purchasers and the Sellers for the purchase of such Securities are not
made within 48 hours after such default, this Agreement shall terminate without
liability of any party to any other party except that the provisions of Section
5, Section 6 and Section 7 shall at all times be effective and shall survive
such termination. In any such case either the Purchasers or the Sellers shall
have the right to postpone the Delivery Date, as the case may be, but in no
event for longer than seven days in order that the required changes, if any, to
the Offering Memorandum or any other documents or arrangements may be effected.

                  As used in this Agreement, the term "Purchaser" shall be
deemed to include any person substituted for a defaulting Purchaser under this
Section 15. Any action taken under this Section 15 shall not relieve any
defaulting Purchaser from liability in respect of any default of such Purchaser
under this Agreement.

                  16. Governing Law; Consent to Jurisdiction.

                  (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                  (b) Any legal suit, action or proceeding arising out of or
based upon this Agreement or the transactions contemplated hereby ("Related
Proceedings") may be instituted in the federal courts of the United States of
America located in the City and County of New York or

                                       33
<PAGE>
the courts of the State of New York in each case located in the City and County
of New York (collectively, the "Specified Courts"), and each party irrevocably
submits to the non-exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a "Related
Judgment"), as to which such jurisdiction is non-exclusive) of such courts in
any such suit, action or proceeding. Service of any process, summons, notice or
document by mail to such party's address set forth above shall be effective
service of process for any suit, action or other proceeding brought in any such
court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such suit, action or other proceeding brought in any such
court has been brought in an inconvenient forum.

                  17. Miscellaneous. This Agreement may be executed in one or
more counterparts, and if executed in more than one counterpart, the executed
counterparts shall together constitute a single instrument. The descriptive
headings in this Agreement are for convenience of reference only and shall not
define or limit the provisions hereof. Time shall be of the essence of this
Agreement.

                                       34
<PAGE>
                  If the foregoing is in accordance with the Purchasers'
understanding of our agreement, kindly sign and return to us one of the
counterparts hereof, whereupon it will become a binding agreement between the
Sellers and the Purchasers in accordance with its terms.

                                 Very truly yours,

                                 THE COMPANY:

                                 GIANT INDUSTRIES, INC.,
                                 a Delaware corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer

                                 THE SUBSIDIARY GUARANTORS:

                                 GIANT INDUSTRIES ARIZONA, INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 CINIZA PRODUCTION COMPANY,
                                 a New Mexico corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT STOP-N-GO OF NEW MEXICO, INC.,
                                 a New Mexico corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                       35
<PAGE>
                                 GIANT FOUR CORNERS, INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 PHOENIX FUEL CO., INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                 Name: Mark B. Cox
                                 Title: Chief Financial Officer and Director

                                 SAN JUAN REFINING COMPANY,
                                 a New Mexico corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT MID-CONTINENT, INC.,
                                 an Arizona corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT PIPELINE COMPANY,
                                 a New Mexico corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                       36
<PAGE>
                                 DEGUELLE OIL COMPANY,
                                 a Colorado corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT YORKTOWN, INC.,
                                 a Delaware corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                 GIANT YORKTOWN HOLDING COMPANY,
                                 a Delaware corporation

                                 By: /s/ Mark B. Cox
                                     -------------------------------------------
                                     Name: Mark B. Cox
                                     Title: Chief Financial Officer and Director

                                       37
<PAGE>
THE PURCHASERS:

The foregoing Purchase Agreement is hereby confirmed and accepted as of the date
first above written.

BANC OF AMERICA SECURITIES LLC
BNP PARIBAS SECURITIES CORP.
FLEET SECURITIES, INC.
By: Bank of America Securities LLC

By: /s/ Lily Chang
    -----------------------------------
    Name: Lily Chang
    Title: Principal

                                       38
<PAGE>
                                   SCHEDULE A

<TABLE>
<CAPTION>
                                                                                               PRINCIPAL
PURCHASERS                                                                               AMOUNT OF SECURITIES
----------                                                                               --------------------
<S>                                                                                      <C>
Banc of America Securities LLC...................................................            $150,000,000
BNP Paribas Securities Corp......................................................            $ 30,000,000
Fleet Securities, Inc. ..........................................................            $  20,000000
                                                                                             ------------
                                                                                             $200,000,000
                                                                                             ============
</TABLE>
<PAGE>
                                   SCHEDULE B

SUBSIDIARY GUARANTORS

GIANT INDUSTRIES ARIZONA, INC., an Arizona corporation
CINIZA PRODUCTION COMPANY, a New Mexico corporation
GIANT STOP-N-GO OF NEW MEXICO, INC., a New Mexico corporation
GIANT FOUR CORNERS, INC., an Arizona corporation
PHOENIX FUEL CO., INC., an Arizona corporation
SAN JUAN REFINING COMPANY, a New Mexico corporation
GIANT MID-CONTINENT, INC., an Arizona corporation
GIANT PIPELINE COMPANY, a New Mexico corporation
DEGUELLE OIL COMPANY, a Colorado corporation
GIANT YORKTOWN, INC., a Delaware corporation
GIANT YORKTOWN HOLDING COMPANY, a Delaware corporation

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