Document:

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                                                                    EXHIBIT 10.4

                         EXECUTIVE EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement"), including the attached Exhibit
"A", is entered into between EOTT ENERGY LLC, a Delaware corporation, having
offices at 2000 W. Sam Houston Parkway S., Suite 400, Houston, Texas 77042
("Employer" and "Company"), and Dana R. Gibbs, an individual currently residing
at 23702 Powder Mill Drive, Tomball, Texas 77375 ("Employee"), to be effective
as of July 1, 2003 (the "Effective Date").

                                   WITNESSETH:

         WHEREAS, Employer is desirous of employing Employee pursuant to the
terms and conditions and for the consideration set forth in this Agreement, and
Employee is desirous of entering employment with the Employer pursuant to such
terms and conditions and for such consideration.

         NOW, THEREFORE, for and in consideration of the mutual promises,
covenants, and obligations contained herein, Employer and Employee agree as
follows:

ARTICLE 1: EMPLOYMENT AND DUTIES:

         1.1.     Employer agrees to employ Employee, and Employee agrees to be
employed by Employer, beginning as of the Effective Date of this Agreement and
continuing until the date set forth on Exhibit "A" (the "Term"), subject to the
terms and conditions of this Agreement. This Agreement will expire by its own
terms and the Employee will automatically become an employee at will and be
included in all general employment and benefit arrangements at the end of the
Term unless the Company notifies Employee of its intention to extend the Term
(such notice to include the length of the intended extension) at least sixty
(60) days prior to the expiration of the Term and Employee accepts such
extension within ten (10) days of receipt of such notice.

         1.2.     Employee shall be employed in the position set forth on
Exhibit "A". Employee agrees to serve in the assigned position and to perform
diligently and to the best of Employee's abilities the duties and services
appertaining to such position as determined by Employer, as well as such
additional or different duties and services appropriate to such position which
Employee from time to time may be reasonably directed to perform by Employer.
Employee shall at all times comply with and be subject to such policies and
procedures as Employer may establish from time to time.

         1.3.     Employee shall, during the period of Employee's employment by
Employer, devote Employee's full business time, energy, and best efforts to the
business and affairs of Employer. Employee may not engage, directly or
indirectly, in any other business, investment, or activity that interferes with
Employee's performance of Employee's duties hereunder, is contrary to the
interests of Employer, or requires any significant portion of Employee's
business time. The activities described as "permitted activities," on Exhibit A
attached hereto shall not be deemed a violation of this Section 1.3.

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         1.4.     Employee acknowledges and agrees that Employee owes a
fiduciary duty of loyalty, fidelity and allegiance to act at all times in the
best interests of the Employer and to do no act which would injure Employer's
business, its interests, or its reputation. Employee agrees to comply with the
policies and procedures as described and contained in the Employer's Code of
Ethics policy, a copy of which has been provided to Employee.

ARTICLE 2: COMPENSATION AND BENEFITS:

         2.1.     Employee shall be paid as set forth on Exhibit "A". Employee's
monthly base salary shall be paid in semimonthly installments in accordance with
Employer's standard payroll practice, and (as with all other payments made to
Employee by Employer) is subject to withholding of all federal, state, city, or
other taxes as may be required by law.

         2.2.     While employed by Employer (both during the Term and
thereafter), Employee shall be allowed to participate, on the same basis
generally as other employees of Employer, in all general employee benefit plans
and programs, including improvements or modifications of the same, which on the
effective date or thereafter are made available by Employer to all or
substantially all of Employer's employees. Such benefits, plans, and programs
may include, without limitation, medical, dental care, life insurance,
disability protection, and qualified plans. Nothing in this Agreement is to be
construed or interpreted to provide greater rights, participation, coverage, or
benefits under such benefit plans or programs than provided to similarly
situated employees pursuant to the terms and conditions of such benefit plans
and programs, except as may be approved by Employer's compensation committee and
Board of Directors.

         2.3.     Employee shall be eligible to participate in the Employer's
long-term incentive plans and Employer's annual incentive plan currently
maintained or hereafter maintained by Employer for its officers as a group.

         2.4.     Employer shall not by reason of this Article 2 be obligated to
institute, maintain, or refrain from changing, amending, or discontinuing, any
such incentive compensation or employee benefit program or plan, so long as such
actions or inactions are similarly applicable to covered employees generally.
Moreover, unless specifically provided for in a written plan document adopted by
the Board of Directors of Employer, none of the benefits or arrangements
described in this Article 2 shall be secured or funded in any way, and each
shall instead constitute an unfunded and unsecured promise to pay money in the
future exclusively from the general assets of Employer.

         2.5.     Employer may withhold from any compensation, benefits, or
amounts payable under this Agreement all federal, state, city, or other taxes as
may be required by law.

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ARTICLE 3: TERMINATION PRIOR TO EXPIRATION OF TERM AND EFFECTS OF SUCH
           TERMINATION:

         3.1.     Notwithstanding any other provisions of this Agreement,
Employer shall have the right to terminate Employee's employment under this
Agreement at any time prior to the expiration of the Term for any of the
following reasons:

            (i)    For "cause" upon the determination by the Company's
                   Chief Executive Officer and the Employer's
                   Independent Directors of the Board who are neither
                   employees of nor Affiliated with Employer or any
                   subsidiary of Employer apart from his or her capacity
                   as a member of the Board and any Board committee and
                   who otherwise have no interest in such determination
                   ("Independent Directors") that "cause" exists for the
                   termination of the employment relationship. As used
                   in this Section 3.1(i), the term "cause" shall mean
                   [a] Employee's gross negligence or willful misconduct
                   in the performance of the duties and services
                   required of Employee pursuant to this Agreement; or
                   [b] Employee's final conviction of a felony or of a
                   misdemeanor involving moral turpitude; [c] Employee's
                   involvement in a conflict of interest as referenced
                   in Sections 1.3 and 1.4 with respect to which
                   Employer makes a good faith determination to
                   terminate the employment of Employee; or [d]
                   Employee's material breach of any material provision
                   of this Agreement which remains uncorrected for
                   thirty (30) days following written notice to Employee
                   by Employer of such breach. It is expressly
                   acknowledged and agreed that the decision as to
                   whether "cause" exists for termination of the
                   employment relationship by Employer is delegated to
                   the Independent Directors of the Board of Employer
                   for determination;

            (ii)   for any other reason whatsoever, with or without
                   cause, in the sole discretion of the Employer's
                   Independent Directors of the Board;

            (iii)  upon Employee's death; or

            (iv)   to the extent allowed by law, upon Employee's
                   becoming incapacitated by accident, sickness, or
                   other circumstance which renders him or her mentally
                   or physically incapable of performing the duties and
                   services required of Employee, as determined in good
                   faith by Employer.

The termination of Employee's employment by Employer prior to the expiration of
the Term shall constitute a "Termination for Cause" if made pursuant to Section
3.1(i); the effect of such termination is specified in Section 3.4. The
termination of Employee's employment by Employer prior to the expiration of the
Term shall constitute an "Involuntary Termination" if made pursuant to Section
3.1(ii); the effect of such termination is specified in Section 3.5. The effect
of the employment relationship being terminated pursuant to Section 3.1(iii) as
a result of Employee's

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death is specified in Section 3.6. The effect of the employment relationship
being terminated pursuant to Section 3.1(iv) as a result of the Employee
becoming incapacitated is specified in Section 3.7.

         3.2.     Notwithstanding any other provisions of this Agreement except
Section 8.5, Employee shall have the right to terminate the employment
relationship under this Agreement at any time prior to the expiration of the
Term of employment for any of the following reasons:

         (i)      a material breach by Employer of any material provision of
                  this Agreement or the occurrence of an Involuntary Termination
                  as defined in Section 3.5 which remains uncorrected for 30
                  days following written notice of such breach by Employee to
                  Employer; or

         (ii)     for any other reason whatsoever, in the sole discretion of
                  Employee.

The termination of Employee's employment by Employee prior to the expiration of
the Term shall constitute an "Involuntary Termination" if made pursuant to
Section 3.2(i); the effect of such termination is specified in Section 3.5. The
termination of Employee's employment by Employee prior to the expiration of the
Term shall constitute a "Voluntary Termination" if made pursuant to Section
3.2(ii); the effect of such termination is specified in Section 3.3.

         3.3.     Upon a "Voluntary Termination" of the employment relationship
by Employee prior to expiration of the Term, all future compensation to which
Employee is entitled and all future benefits for which Employee is eligible
shall cease and terminate as of the date of termination. Employee shall be
entitled to pro rata salary and accrued benefits through the date of such
termination, but Employee shall not be entitled to any bonuses or incentive
compensation not yet paid at the date of such termination.

         3.4.     If Employee's employment hereunder shall be terminated by
Employer for Cause prior to expiration of the Term, all future compensation to
which Employee is entitled and all future benefits for which Employee is
eligible shall cease and terminate as of the date of termination. Employee shall
be entitled to pro rata salary and accrued benefits through the date of such
termination, but Employee shall not be entitled to any bonuses or incentive
compensation not yet paid at the date of such termination.

         3.5.     Upon an Involuntary Termination of the employment relationship
by either Employer or Employee prior to expiration of the Term, Employee shall
be entitled, after execution of a Waiver and Release Agreement in consideration
of Employee's continuing obligations hereunder after such termination
(including, without limitation, Employee's non-competition obligations), to the
sum of two years annual base salary payable as follows: one year's annual base
salary shall be paid within thirty (30) days of the termination date; the
remaining one year's annual base salary shall be paid at the end of the twelve
(12) month period following the termination date. As used in this Agreement,
"Involuntary Termination" shall also mean termination of Employee's employment
with Employer if such termination results from:

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         (i)      termination by Employee within 90 days of and in connection
                  with or based upon any of the following:

                  (a)      a substantial and/or material reduction in the nature
                           or scope of Employee's duties and/or responsibilities
                           as such duties are constituted as of the effective
                           date of this Agreement or later agreed to by Employee
                           and Employer, or if Employee is no longer an
                           executive officer of the Company as defined as
                           Section 16b in SEC regulations, which reduction
                           remains in place and uncorrected for thirty(30) days
                           following written notice of such breach to Employer
                           by Employee;

                  (b)      a reduction in Employee's base pay or an exclusion
                           from a benefit plan or programs (except as part of a
                           general cutback for all employees or officers);

                  (c)      a change in the location for the primary performance
                           of Employee's services under this Agreement from the
                           city in which Employee was serving at the time of
                           notification to a city which is more than 100 miles
                           away from such location, which change is not approved
                           by Employee;

         (ii)     termination by Employee within one (1) year of Change of
                  Control Date:

                  (a)      "Change of Control" of Company shall mean

                           (i)      Company merges or consolidates with any
                                    other entity (other than one of EOTT Energy
                                    LLC's majority owned subsidiaries) and the
                                    shareholders of EOTT Energy LLC own less
                                    than 50% of the surviving entity,

                           (ii)     Company sells all or substantially all of
                                    its assets to any other person or entity
                                    (other than (i) a sale of equity interests
                                    in EOTT Energy LLC or (ii) a sale of assets
                                    to another majority owned subsidiary of EOTT
                                    Energy LLC and in connection therewith
                                    Employee becomes employed by such
                                    subsidiary, EOTT Energy LLC or a partnership
                                    in which EOTT Energy LLC is the general
                                    partner),

                           (iii)    Company is dissolved,

                           (iv)     any third person or entity together with its
                                    Affiliates shall become, directly or
                                    indirectly, the Beneficial Owner of greater
                                    than 50% of the voting stock of Company
                                    (except as the result of a distribution of
                                    the voting securities of the Company to the
                                    shareholders), or if

                           (v)      during such time as Company has a class of
                                    Voting Securities registered under the
                                    Securities Exchange Act of 1934, the
                                    individuals who constituted the members of
                                    the Company's Board of Directors ("Incumbent
                                    Board") upon the effective date of such
                                    registration cease for any reason to
                                    constitute at least a majority thereof,
                                    provided that any person becoming a director

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                                    whose election or nomination for election by
                                    Company stockholders was approved by a vote
                                    of at least two thirds (2/3) of the
                                    directors comprising the Incumbent Board
                                    (either by a specific vote or by approval of
                                    the proxy statement of the Company in which
                                    such person is named as a nominee for
                                    director, without objection to such
                                    nomination) shall be, for purposes of this
                                    clause (v), considered as though such person
                                    were a member of the Incumbent Board.

                  (b)      "Change of Control Date" shall mean the day on which
                           a Change of Control becomes effective.

Employee shall not be under any duty or obligation to seek or accept other
employment following Involuntary Termination and the amounts due Employee
hereunder shall not be reduced or suspended if Employee accepts subsequent
employment. Employee's rights under this Section 3.5 are Employee's sole and
exclusive rights against Employer, or its Affiliates, and Employer's sole and
exclusive liability to Employee under this Agreement, in contract, tort, or
otherwise, for any Involuntary Termination of the employment relationship.
Employee, to the extent permitted by law, covenants not to sue or lodge any
claim, demand or cause of action against Employer for any sums for Involuntary
Termination other than those sums specified in this Section 3.5.

                  3.6.     Upon termination of the employment relationship as a
result of Employee's death, Employee's heirs, administrators, or legatees shall
be entitled to Employee's pro rata salary for the remaining term of contract.

                  3.7.     Upon termination of the employment relationship as a
result of Employee's incapacity, Employee shall be entitled to his or her pro
rata salary for the remaining term of contract.

                  3.8.     In all cases, the payments payable to Employee under
Section 3.5 of this Agreement upon termination of the employment relationship
shall be offset against any amounts to which Employee may otherwise be entitled
under any and all severance plans, and policies of Employer, or its Affiliates.

                  3.9.     Termination (including expiration of the Term) of the
employment relationship does not terminate those obligations imposed by this
Agreement, which are continuing obligations, including, without limitation,
Employee's obligations under Articles 5 and 6. Upon termination, Employee shall
promptly return all property of the Company to the Company, including books,
records, computer files, etc.

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ARTICLE 4: CONTINUATION OF EMPLOYMENT BEYOND TERM; TERMINATION AND EFFECTS OF
           TERMINATION:

         4.1.     Should Employee remain employed by Employer beyond the
expiration of the Term of this Agreement, and this Agreement has not been
extended by Employer, the Employer-Employee relationship shall be employment at
will, terminable at any time by either Employer or Employee for any reason
whatsoever, with or without cause, subject to the terms and conditions hereof.

ARTICLE 5: OWNERSHIP AND PROTECTION OF INFORMATION; COPYRIGHTS:

         5.1.     All information, ideas, concepts, improvements, discoveries,
and inventions, whether patentable or not, which are conceived, made, developed
or acquired by Employee, individually or in conjunction with others, during
Employee's employment by Employer (whether during business hours or otherwise
and whether on Employer's premises or otherwise) which relate to Employer's
business, products or services (including, without limitation, all such
information relating to corporate opportunities, research, financial and sales
data, pricing and trading terms, evaluations, opinions, interpretations,
acquisition prospects, the identity of customers or their requirements, the
identity of key contacts within the customer's organizations or within the
organization of acquisition prospects, or marketing and merchandising
techniques, prospective names, and marks) shall be disclosed to Employer and are
and shall be the sole and exclusive property of Employer. Moreover, all
drawings, memoranda, notes, records, files, correspondence, drawings, manuals,
models, specifications, computer programs, maps and all other writings or
materials of any type embodying any of such information, ideas, concepts,
improvements, discoveries, and inventions are and shall be the sole and
exclusive property of Employer.

         5.2.     Employee acknowledges that the business of Employer, and its
Affiliates is highly competitive and that its strategies, methods, books,
records, and documents, its technical information concerning its products,
equipment, services, and processes, procurement procedures and pricing
techniques, the names of and other information (such as credit and financial
data) concerning its customers and business affiliates, all comprise
confidential business information and trade secrets which are valuable, special,
and unique assets which Employer, or its Affiliates use in its business to
obtain a competitive advantage over its competitors. Employee further
acknowledges that protection of such confidential business information and trade
secrets against unauthorized disclosure and use is of critical importance to
Employer, and its Affiliates in maintaining its competitive position. Employee
acknowledges that under this Agreement, Employee is being given access to
Employer's confidential business information and trade secrets, and Employee
hereby agrees that Employee will not, at any time during or after his or her
employment by Employer, make any unauthorized disclosure of any confidential
business information or trade secrets of Employer, or its Affiliates, or make
any use thereof, except in the carrying out of his or her employment
responsibilities hereunder, or as may be required by law. EOTT Energy LLC and
its Affiliates shall be third party beneficiaries of Employee's obligations
under this Section. As a result of Employee's employment by Employer, Employee
may also from time to time have access to, or knowledge of, confidential
business information or trade secrets of third parties, such as customers,
suppliers, partners, joint venturers, and the like, of Employer, and its
Affiliates. Employee also

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agrees to preserve and protect the confidentiality of such third party
confidential information and trade secrets to the same extent, and on the same
basis, as Employer's confidential business information and trade secrets.
Employee acknowledges that money damages would not be a sufficient remedy for
any breach of this Article 5 by Employee, and Employer shall be entitled to
enforce the provisions of this Article 5 to specific performance and injunctive
relief as remedies for such breach or any threatened breach. Such remedies shall
not be deemed the exclusive remedies for a breach of this Article 5, but shall
be in addition to all remedies available at law or in equity to Employer,
including the recovery of damages from Employee and his or her agents involved
in such breach.

ARTICLE 6: POST-EMPLOYMENT NON-COMPETITION OBLIGATIONS:

         6.1.     As part of the consideration for the compensation and benefits
to be paid to Employee hereunder, and as an additional incentive for Employer to
enter into this Agreement, and in particular Employer's agreement to the
protections contained in Section 3.5, Employer and Employee agree to the
non-competition provisions of this Article 6 during the term of this Agreement.
Employee agrees that during the period of Employee's non-competition obligations
hereunder, Employee will not, directly or indirectly for Employee or for others,
in any geographic area or market where Employer or any of its Affiliated
companies are conducting any business as of the date of termination of the
employment relationship or have during the previous twelve months conducted any
business:

         (i)      engage in any business competitive with the business conducted
                  by Employer or its Affiliates;

         (ii)     render advice or services to, or otherwise assist, any other
                  person, association, or entity who is engaged, directly or
                  indirectly, in any business competitive with the business
                  conducted by Employer or its Affiliates; or

         (iii)    induce any employee of Employer or any of its Affiliates to
                  terminate his or her employment with Employer or its
                  Affiliates, or hire or assist in the hiring of any such
                  employee by person, association, or entity not Affiliated with
                  Employer or its Affiliates.

These non-competition obligations shall continue for a period of one year after
involuntary termination of this employment relationship.

         6.2.     Employee understands that the foregoing restrictions may limit
his or her ability to engage in certain businesses during the twelve (12) month
period provided for above, but acknowledges that Employee will receive
sufficiently high remuneration and other benefits (e.g., the right to receive
compensation under Section 3.5 upon Involuntary Termination) under this
Agreement to justify such restriction. Employee acknowledges that money damages
would not be sufficient remedy for any breach of this Article 6 by Employee, and
Employer shall be entitled to enforce the provisions of this Article 6 by
terminating any payments then owed to Employee under

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this Agreement and/or to specific performance and injunctive relief as remedies
for such breach or any threatened breach. Such remedies shall not be deemed the
exclusive remedies for a breach of this Article 6, but shall be in addition to
all remedies available at law or in equity to Employer, including, without
limitation, the recovery of damages from Employee and his or her agents involved
in such breach.

         6.3.     It is expressly understood and agreed that Employer and
Employee consider the restrictions contained in this Article 6 to be reasonable
and necessary to protect the proprietary information of Employer. Nevertheless,
if any of the aforesaid restrictions are found by a court having jurisdiction to
be unreasonable, or overly broad as to geographic area or time, or otherwise
unenforceable, the parties intend for the restrictions therein set forth to be
modified by such courts so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.

ARTICLE 7: INDEMNIFICATION:

         7.1      If, at any time during or after the Term of this Agreement,
the Employee is made a party to, or is threatened to be made a party in, any
civil, criminal or administrative action, suit or proceeding by reason of the
fact that the Employee is or was a director, officer, employee or agent of the
Company, or of any other corporation or any partnership, joint venture, trust or
other enterprise for which the Employee served as such at the request of the
Company, then the Employee shall be indemnified by the Company, to the fullest
extent permitted under applicable law, against expenses actually and reasonably
incurred by the Employee or imposed on the Employee in connection with, or
resulting from, the defense of such action, suit or proceeding, or in connection
with, or resulting from, any appeal therein if the Employee acted in good faith
and in a manner the Employee reasonably believed to be in or not opposed to the
best interest of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe the Employee's conduct was
unlawful, except with respect to matters as to which it is adjudged that the
Employee is liable to the Company or to such other corporation, partnership,
joint venture, trust or other enterprise for gross negligence or willful
misconduct in the performance of the Employee's duties. As used herein, the term
"expenses" shall include all obligations actually and reasonably incurred by the
Employee for the payment of money, including, without limitation, attorney's
fees, judgments, awards, fines, penalties and amounts paid in satisfaction of a
judgment or in settlement of any such action, suit or proceeding, except amounts
paid to the Company or such other corporation, partnership, joint venture, trust
or other enterprise by the Employee. The foregoing indemnification provisions
shall be in addition to any other rights to indemnification to which the
Employee may be entitled.

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ARTICLE 8: MISCELLANEOUS:

         8.1.     For purposes of this Agreement the following terms shall have
the meanings ascribed to them below:

         (a)      "Affiliates" or "Affiliated" means an entity who directly, or
                  indirectly through one or more intermediaries, controls, is
                  controlled by, or is under common control with Employer.

         (b)      "Involuntary Termination Date" shall mean Employee's last date
                  of employment by reason of an Involuntary Termination.

         8.2.     For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when personally delivered or when mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

If to Employer, to:

         EOTT Energy LLC
         Box 4666
         Houston, Texas 77210
         Attention: Vice President Human Resources

If to Employee, to:

         Mr. Dana R. Gibbs
         23702 Powder Mill Drive
         Tomball, TX 77375

Either Employer or Employee may furnish a change of address to the other in
writing in accordance herewith, except that notices of changes of address shall
be effective only upon receipt.

         8.3.     This Agreement shall be governed in all respects by the laws
of the State of Texas, excluding any conflict-of-law rule or principle that
might refer the construction of the Agreement to the laws of another state or
country.

         8.4.     No failure by either party hereto at any time to give notice
of any breach by the other party of, or to require compliance with, any
condition or provision of this Agreement shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

         8.5. If a dispute arises out of or related to this Agreement, other
than a dispute regarding Employee's obligations under Article 5, Section 5.2, or
Article 6, Section 6.1, and if the dispute cannot be settled through direct
discussions, then Employer and Employee agree to first endeavor to

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settle the dispute in an amicable manner by mediation, before having recourse to
any other proceeding or forum. Employer shall pay all costs of such mediation
and binding arbitration, exclusive of Employee's legal fees. Thereafter, the
matter shall be submitted to binding arbitration as follows:

         ANY DISPUTE, CLAIM, OR CONTROVERSY ARISING OUT OF OR RELATED IN ANY WAY
         TO THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO ITS ENFORCEABILITY,
         VALIDITY, OR INTERPRETATION, OR RELATED IN ANY WAY TO EMPLOYEE'S
         EMPLOYMENT WITH EMPLOYER THAT IS NOT FIRST RESOLVED BY AGREEMENT OR
         MEDIATION AS PROVIDED ABOVE, SHALL BE SUBMITTED TO AND RESOLVED BY
         BINDING ARBITRATION WITH THE AMERICAN ARBITRATION ASSOCIATION ("AAA")
         IN HOUSTON, TEXAS, IN ACCORDANCE WITH THE AAA'S APPLICABLE RULES TO THE
         RESOLUTION OF EMPLOYMENT DISPUTES. JUDGMENT UPON THE AWARD RENDERED BY
         THE ARBITRATOR(S) MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. IT
         IS SPECIFICALLY AGREED THAT THE ARBITRATION PROVISION SHALL BE BINDING
         ON EMPLOYEE'S HEIRS, ADMINISTRATORS, AND PERSONAL REPRESENTATIVES. THE
         PARAGRAPH SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT. NOTHING
         CONTAINED IN THE AGREEMENT SHALL PREVENT EMPLOYER FROM SEEKING
         INJUNCTIVE RELIEF AGAINST EMPLOYEE FOR VIOLATION OF ANY AGREEMENT
         PERTAINING TO NON-COMPETITION, TRADE SECRETS, OR CONFIDENTIALITY.

         8.6.     It is a desire and intent of the parties that the terms,
provisions, covenants, and remedies contained in this Agreement shall be
enforceable to the fullest extent permitted by law. If any such term, provision,
covenant, or remedy of this Agreement or the application thereof to any person,
association, or entity or circumstances shall, to any extent, be construed to be
invalid or unenforceable in whole or in part, then such term, provision,
covenant, or remedy shall be construed in a manner so as to permit its
enforceability under the applicable law to the fullest extent permitted by law.
In any case, the remaining provisions of this Agreement or the application
thereof to any person, association, or entity or circumstances other than those
to which they have been held invalid or unenforceable, shall remain in full
force and effect.

         8.7.     This Agreement shall be binding upon and inure to the benefit
of Employer and any other person, association, or entity which may hereafter
acquire or succeed to all or substantially all of the business or assets of
Employer by any means whether direct or indirect, by purchase, merger,
consolidation, or otherwise. Employer may assign this Agreement to any Affiliate
or any other entity of EOTT Energy LLC. Employee's rights and obligations under
this Agreement hereof are personal and such rights, benefits, and obligations of
Employee shall not be voluntarily or involuntarily assigned, alienated, or
transferred, whether by operation of law or otherwise, without the prior written
consent of Employer.

         8.8.     There exist other agreements between Employer and Employee
relating to the employment relationship between them, e.g., the agreement with
respect to Employer policies contained in Employer's Code of Ethics policy and
agreements with respect to benefit plans. This Agreement replaces and merges
previous agreements and discussions pertaining to the following

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subject matters covered herein: the nature of Employee's employment relationship
with Employer and the term and termination of such relationship. This Agreement
constitutes the entire agreement of the parties with regard to such subject
matters, and contains all of the covenants, promises, representations,
warranties, and agreements between the parties with respect such subject
matters. Each party to this Agreement acknowledges that no representation,
inducement, promise, or agreement, oral or written, has been made by either
party with respect to such subject matters, which is not embodied herein, and
that no agreement, statement, or promise relating to the employment of Employee
by Employer that is not contained in this Agreement shall be valid or binding.
Any modification of this Agreement will be effective only if it is in writing
and signed by each party whose rights hereunder are affected thereby, provided
that any such modification must be authorized or approved by the Board of
Directors of Employer.

         IN WITNESS WHEREOF, Employer and Employee have duly executed this
Agreement in multiple originals to be effective on the date first stated above.

                              EOTT ENERGY LLC

                              By: /s/ T.M. Matthews
                                  ----------------------------------------
                                  Name: Thomas M. Matthews
                                  Title: Chairman and CEO

                              This 14 day of July, 2003

                              DANA R. GIBBS

                              /s/ Dana R. Gibbs
                              --------------------------------------------

                              This 10th day of July, 2003

                                  - Page 12 -

<PAGE>

                                 EXHIBIT "A" TO
                         EXECUTIVE EMPLOYMENT AGREEMENT
                                     BETWEEN
                        EOTT ENERGY LLC AND DANA R. GIBBS

Employee Name:             Dana R. Gibbs

Term:                      Three (3) years (June 30, 2006)

Position:                  President and Chief Commercial Officer

Reporting Relationship:    Chief Executive Officer

Location:                  Houston, Texas

Monthly Base Salary:       Employee's monthly base salary shall not be less
                           than twenty-two thousand eighty-three dollars and
                           thirty cents ($22,083.30).

Bonus:                     Employee is eligible to participate in the EOTT
                           Energy LLC Annual Incentive Plan ("Plan") or any
                           appropriate replacement bonus plan of Employer. All
                           bonuses are discretionary and shall be paid in
                           accordance with the terms and provisions of the Plan.
                           The annual targeted incentive is fifty percent (50%)
                           of the annual base salary.

Long Term Incentives:      Employee is eligible to participate in any long term
                           incentive plans as recommended and approved by the
                           Board of Directors of EOTT Energy LLC. Employee's
                           2003 award under the EOTT Energy LLC Equity Plan is
                           85,000 LLC units. In the event of Involuntary
                           Termination as a result of Change of Control as
                           defined in Article 3, Section 3.5(ii), accelerated
                           vesting shall occur on the termination date for all
                           unvested units under any award grants.

Vacation Benefits:         Employee shall receive four (4) weeks of vacation per
                           year accrued on a monthly basis.

EOTT ENERGY LLC                               DANA R. GIBBS

By: /s/ T.M. Matthews                         /s/ Dana R. Gibbs
    --------------------------------------    ----------------------------------
    Name: T.M. Matthews                       This 10th day of July, 2003
    Title: Chairman & CEO
    This 10 day of July, 2003<PAGE>
                                                                    EXHIBIT 10.5

                               [EOTT ENERGY LOGO]

June 10, 2003

Mr. James R. Allred
510 Walnut Bend
Houston, Texas 77042

Dear Mr. Allred:

It is a pleasure to offer you employment with EOTT Energy LLC or its successor
company(ies) (EOTT) in the exempt position of Vice President & Treasurer
reporting to Keith Kaelber in the Houston office. Your employment will begin on
or about July 1, 2003 at a salary of $12,916.67 per month. As an employee of
EOTT, you will be eligible to participate in all the benefit plans and employee
programs.

You are eligible to participate in the 2003 EOTT Energy Annual Incentive Plan
("Plan"). All bonuses are discretionary and shall be paid in accordance with the
terms and provisions of the Plan. Your targeted bonus opportunity is thirty
(30%) percent of your annual base salary, provided Employee and Employer meet
performance objectives. You are a participant in the EOTT Energy Equity
Incentive Plan. An initial 2003 award has been approved at 40,000 LLC Units
which represents an estimated target award value over a 3 year growth period
equal to 3 times base salary. In the event of Change of Control as defined in
the Plan provisions, accelerated vesting occurs under involuntary termination.

If during your first year of employment, involuntary termination of your
employment occurs, excluding for cause termination, a separation payment equal
to one year's base salary will be provided within thirty (30) days of such
termination date. You are not eligible for severance benefits under the EOTT
Energy LLC Severance Pay Plan during your first year of employment.

As an exception to EOTT's standard two week vacation accrual for new employees,
you will accrue vacation at a four (4) week vacation accrual rate as of your
date of hire.

This offer of employment is contingent upon the successful completion of: 1) a
pre-employment drug screen, 2) a background check (successfully completed), and
3) the signing of the enclosed EOTT Energy Code of Ethics and EOTT Energy
Confidentiality and Intellectual Property Rights Agreement.

EOTT employees are subject to the EOTT Energy Controlled Substances and Drug
Paraphernalia in the Workplace Policy, the Alcohol Abuse Prevention and Testing
Policy, and the Alcohol Misuse in the Workplace Policies that forbid or
significantly limit any use of certain substances by DOT regulated and other
employees. These policies require DOT and certain other employees to undergo
pre-employment, random, post-accident, reasonable suspicion, return to duty as
well as certain other drug and alcohol testing. All employees are subject to
reasonable suspicion testing as indicated in the policies.

Allred, James R.

                                 EOTT ENERGY LLC
                     P.O.Box 4666, Houston, Texas 77210-4666

<PAGE>

Page 2

You must agree to submit to and pass a pre-employment drug screening test
indicating that you are free from the use of unauthorized drugs. "Unauthorized
drugs" means one or more (or any combination thereof), of the following: (1)
marijuana, (2) cocaine, (3) opiates, (4) amphetamines and (5) phencyclidine
(PCP). Arrangements will be made for you to visit a clinic in your area to have
this drug test done. At that time you will be requested to provide a urine
specimen for testing.

Enclosed is a new hire information packet that contains employment forms you
should complete and have with you when you report for work to activate your
employment and benefit enrollment with EOTT. Please refer to the New Hire
Checklist included in the packet for the forms and their respective deadlines.

In accordance with the Immigration Reform and Control Act of 1986 (IRCA), EOTT
must have you complete and sign on your first day of employment with EOTT a new
identity and authorization to work in the United States form (I-9). You must
bring with you on your first day at work one of the following documents: U.S.
Passport OR Certificate of U.S. Citizenship, OR a valid State Drivers License
(with photograph) AND either an original Social Security Card or Birth
Certificate (State or County issued). These documents must be originals or
certified copies bearing original certification seal or stamp. These documents
will be inspected by your supervisor or a representative from Human Resources
and returned to you before the end of the day. PLEASE UNDERSTAND THAT IF YOU ARE
UNABLE TO PRESENT THE DOCUMENTS REQUIRED BY LAW TO COMPLETE THE FORM I-9 WITHIN
72 HOURS OF YOUR START DATE, THIS EMPLOYMENT OFFER WILL NO LONGER BE VALID.

BENEFITS:

You and your eligible dependents may participate in coverage under EOTT's
Employee Benefit Plans. Your new hire packet contains enrollment materials and
cost information on the benefits available to you. Please review this material
carefully to ensure your choices will meet your personal needs. You should
complete your enrollment forms as soon as possible after your employment begins
to ensure continuous medical and dental coverage. IF WE DO NOT RECEIVE YOUR
FORMS WITHIN 31 DAYS OF YOUR DATE OF HIRE, YOU WILL:

     -    be assigned the $1250 Deductible (Employee Only) Option for medical
          coverage effective the date we receive your enrollment form, and

     -    not be able to choose your desired medical coverage and not be
          eligible for dental or vision coverage or have dependent coverage
          until the Company's next Open Enrollment period for the following
          year's coverage, and

     -    be required to fill out an Evidence of Insurability form for
          supplemental life insurance for you and your dependents.

Medical and Dental Coverage

You may elect medical coverage for you and your eligible dependents from the
plan options that are available in your area as indicated on the enclosed
Employee Contribution Price Sheet for Medical/Dental/Vision. A United Healthcare
list of network physicians are available on the Internet at
www.unitedhealthcare.com. You may also elect dental coverage. You may elect the
medical coverage without dental coverage, dental coverage alone, or you may
elect both coverages.

Vision Care Coverage

You may also elect coverage for you and your eligible dependents in our
voluntary Vision Care Plan that provides managed care examinations and eyewear
from Vision Service Plan. Employees pay the full cost of coverage. To find out
more about the vision coverage and to locate a network doctor, visit the Vision
Service Plan Internet web page at www.vsp.com.

Allred, James R.

<PAGE>

Page 3

You must be actively at work on the date your coverage is to begin. "Actively at
work" means that you are physically at work or on approved vacation or scheduled
day off on the date your coverage is to begin. If you have a dependent that is
confined in a hospital on the date coverage is to begin, the dependent's EOTT
coverage will not be effective until the dependent is released from the
hospital.

Life and Accidental Death and Dismemberment Insurance

On the date you become an active employee of EOTT, you are automatically
enrolled for Basic Term Life insurance at 1.5 times your annual base salary or
benefit rate and also Basic Accidental Death and Dismemberment (AD&D) coverage
at 1.5 times your annual base salary or benefit rate. The cost for your Basic
Term Life and AD&D coverage is currently paid entirely by the Company. The
dollar amount of your coverage is adjusted each January 1, based on your salary
as of that date, and remains effective for that calendar year.

Supplemental Life and AD&D coverage is available to you at 1.5 or 2.5 times your
annual base salary or benefit rate. You must complete an enrollment form to
establish this coverage. The cost for this coverage is paid entirely by you.
Contributions are based on a rate schedule, which is included in your packet.
Any request to increase the amount of your Supplemental Life coverage after the
first 31 days of employment requires evidence of insurability at your expense.
AD&D coverage does not require evidence of insurability at any time. The dollar
amount of your coverages are adjusted each January 1, based on your salary as of
that date, and remains effective for that calendar year.

You must be enrolled in Supplemental Life to elect Spouse and/or Child(ren) life
coverage for your dependents. The coverage amount cannot exceed 50% of your
Supplemental Life coverage amount. The cost for Spouse and/or Child(ren) life
coverage is paid entirely by you. The contributions for these coverages are in
this packet. Family AD&D coverage is also available.

Medical Leave

Upon your hire date by EOTT your medical (sick pay) leave benefit will be
established according to the schedule found in the enclosed Benefits Alert
summary. The schedule is based on length of continuous service. The maximum
amount of sick pay leave is 26 weeks or 1,040 hours.

Basic Long Term Disability

You will be automatically enrolled for long-term disability benefits when you
have completed six months of service from your date of hire. A pre-existing
condition rule will apply for any illness or injury for which you received
medical treatment, consultation, care, diagnostic tests or prescribed medication
in the three (3) months immediately before your effective date of coverage. The
Company currently pays the cost for long-term disability coverage.

Supplemental Long Term Disability

After six months of continuous service, you will be eligible to elect coverage
for a voluntary Supplemental Long Term Disability benefit that will increase
your Company paid Basic Long Term disability benefit from 50% of your base
salary or benefit rate to 60% of your base salary or benefit rate. The cost for
Supplemental Long Term Disability coverage is paid entirely by you. At the time
you have met the eligibility requirements, information will be submitted to you
for election.

Allred, James R.

<PAGE>

Page 4

Long Term Care

You are also eligible to elect coverage for a Long Term Care benefit. This plan
is available to employees, spouses, parents, and parents-in-law, grandparents
and grandparents-in-law. A CNA packet is enclosed with additional information
and enrollment forms.

EOTT Energy Savings Plan

You may enroll in the EOTT Energy Savings Plan immediately upon hire. You may
contribute up to 30% in whole percentages through payroll deduction before taxes
are withheld and an additional 15% after taxes are withheld, or any combination
of before and after tax withholdings. The plan offers thirteen investment
options for you to choose from. Enclosed in your new hire packet is detailed
fund information.

EOTT may contribute on your behalf to the Savings Plan a discretionary company
match and an additional employer contribution based on the profitability of the
Company. Profit Sharing contributions and company matching contributions are
subject to a 25% per year vesting schedule.

Vacation

Vacation is earned and accrued at the end of each month and is paid at the
employee's base rate of pay or commission rate at the time the vacation is used.
VACATION MAY BE TAKEN AT ANY TIME IN THE CALENDAR YEAR WITH APPROVAL FROM THE
SUPERVISOR PRIOR TO BEING SCHEDULED. VACATION REQUESTS MAY BE DENIED DUE TO
CONFLICT WITH BUSINESS REQUIREMENTS AND AVAILABLE RESOURCES. Please refer to the
vacation schedule provided in the enclosed Benefits Alert summary for more
information.

Holidays

There are 10 paid holidays per calendar year. These may consist of up to 3
discretionary days depending upon day of the week the holidays occur in a
calendar year.

This letter does not constitute a contract of employment, nor does it imply an
obligation to you or EOTT outside the doctrine of Employment-At-Will. Under the
doctrine of Employment-At-Will, your employment may be terminated by you or EOTT
at any time, for any reason. Your acceptance of this offer shall constitute your
acknowledgement that you understand that no officer, manager, or representative
of EOTT has the authority to enter into any oral or written agreement or to make
any agreement contrary to the foregoing unless approved by the Board of
Directors of the Company. The terms and conditions stated above constitute the
entire offer of employment. Any promises, conditions, perquisites or statements
made prior to this offer and not expressly stated within this offer of
employment, shall not be considered binding upon the company. Your employment
will be subject to policies adopted by EOTT from time to time, which the Company
may adopt, amend or terminate at any time in its sole discretion, without prior
notice to you.

As always, EOTT considers salary information to be privileged information. The
company requests that you demonstrate sensitivity to this issue by keeping the
details of this offer confidential. You are encouraged to confer only with your
hiring supervisor or Human Resources regarding any questions you may have.

Allred, James R.

<PAGE>

Page 5

I am confident that you will be an asset to our organization and we look forward
to having you with us. Please sign the attached acceptance statement and return
to Human Resources as soon possible or no later than June 17, 2003. If EOTT does
not receive your response by June 17, 2003 this offer is null and void.

If you have any questions concerning this offer of employment please feel free
to contact me at 713-993- 5001.

Sincerely,

Mary Ellen Coombe
Vice President, Human Resources & Administration

Allred, James R.

<PAGE>

                         EMPLOYMENT ACCEPTANCE STATEMENT

I, James R. Allred, accept your offer of employment in the exempt position of
Vice President & Treasurer at a monthly salary of $12,916.67. I understand that
this offer of employment is contingent upon my successful passing of a
pre-employment drug screen, a background check (successfully completed) and my
signing of the EOTT Energy Code of Ethics and EOTT Energy Confidentiality and
Intellectual Property Rights Agreement.

I understand that I am eligible to participate in the 2003 EOTT Energy Annual
Incentive Plan ("Plan"). All bonuses are discretionary and shall be paid in
accordance with the terms and provisions of the Plan. I am eligible for an
initial targeted bonus opportunity of thirty (30%) percent of my annual base
salary, provided Employee and Employer meet performance objectives. I understand
that I am a participant in the EOTT Energy Equity Incentive Plan. An initial
2003 award has been approved at 40,000 LLC Units which represents an estimated
target award value over a 3 year growth period equal to 3 times base salary,
however, not guaranteed. In the event of Change of Control as defined in the
Plan provisions, accelerated vesting occurs under involuntary termination.

I understand that if during my first year of employment, involuntary termination
of my employment occurs, excluding for cause termination, a separation payment
equal to one year's base salary will be provided within thirty (30) days of such
termination date. I am not eligible for severance benefits under the EOTT Energy
LLC Severance Pay Plan during my first year of employment.

I understand that this offer does not constitute a contract for employment, nor
does it imply any obligation to me or the Company outside the doctrine of
Employment-At-Will. Under the doctrine of Employment-At-Will, my employment may
be terminated by EOTT or myself at any time, for any reason. I also acknowledge
that I have read the attached offer letter and certify that I have not signed an
agreement of confidentiality, covenant not to compete, nor any other type of
agreement with restrictive covenants of any kind of nature with any of my
employers, past, or present, that would restrict, prevent or otherwise preclude
my employment with the Company and certification and compliance as an employee
of the Company. My acceptance of this offer shall constitute acknowledgement
that I understand that no officer, manager, or representative of the Company has
the authority to enter into any oral or written agreement, or to make any
agreement contrary to the foregoing unless approved by the Board of Directors of
the Company. The terms and conditions stated in the attached offer letter
constitute the entire offer of employment. Any promises, conditions, perquisites
or statements made prior to this offer and not expressly stated within this
offer of employment, should not be considered binding upon the Company.

/s/ James R. Allred
---------------------------------
James R. Allred

6/17/03
-------
Date

Please return this form by due date to:

                                Mary Ellen Coombe
                Vice President, Human Resources & Administration
                                  P.O. Box 4666
                            Houston, Texas 77210-4666
                              Fax No: 713-402-2772

Allred, James R.

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