Document:

<PAGE>

                                                                   EXHIBIT 10.19

                                 [TORCH LETTERHEAD]

March 23, 1999

Thomas Milton Ray III
9006 Rhapsody Lane
Houston, TX 77040

Dear Trip:

Torch Energy Advisors Incorporated is pleased to confirm its offer to you of a
position with Novistar Incorporated as President and Chief Executive Officer. In
this position, you will report to Novistar's Board of Directors.

Your starting salary will be $20,833.34 per month (paid semi-monthly) and this
position is bonus eligible. As with all employees of Novistar, your bonus will
be based on the success of Novistar against its 1999 budget. Any such bonus
will be payable in March 2000. While the details of Novistar's 1999 bonus plan
are still being finalized, it is anticipated that in the event Novistar meets
its 1999 budget goals, you can expect a bonus of approximately 40% of base
pay. In addition, this bonus may reach 100% of base pay for a Novistar
performance of 200% of the 1999 budget.

Your starting date is yet to be determined; however, we look forward to you
joining Novistar as soon as practicable. Should you join the company prior to
May 15, 1999 you will receive a signing bonus of $50,000 payable at the close of
the first full pay period in which you work.

You will be offered an equity stake in Novistar in the form of options. These
options which are based on a $20,000,000 valuation of Novistar and a total of
10,000,000 shares outstanding are offered under the following structure:

 . An option to purchase 500,000 shares at $2 per share. You will be vested in
  these options on your date of hire. Novistar will perform a company valuation
  annually but no sooner than June 2000. Your equity position will be protected
  against dilution from any equity issuance of shares below fair market value
  price as established by the Board of Directors.

 . Options to purchase an additional 100,000 shares granted annually for three
  years on the anniversary of your start date. These options will vest on the
  grant date. The exercise price of these options will be determined by the most
  recent Novistar

<PAGE>

    valuation approved by Novistar's Board of Directors at the time of grant.
    You will also receive options on an additional 200,000 shares at the end of
    the three-year period. In the event that Novistar is impacted by a liquidity
    event, (such as an IPO, or an acquisition of Novistar by a third-party),
    prior to the completion of the three-year period, you will be granted the
    remainder of the 500,000 options immediately prior to the liquidity event.
    The exercise price of all options will be based on the most recent Board
    approved valuation at the time of grant. Your equity position will be
    protected against dilution from any equity issuance of shares below fair
    market value price as established by the Board of Directors.

We will offer you an employment contract with a one-year term. If Novistar
terminates the contract prior to the term, you will receive a payout equal to
two times your annual base pay. In this situation, you will not be eligible to
receive any payment for your Novistar options.

Other benefits for which you are eligible are as follows:

 . Four weeks of annual vacation accrued on a pay period basis.
 . Eleven paid holidays per year.
 . 401(k) Retirement Plan.
 . Health, dental and vision insurance plans effective your first day of
  employment.
 . Short and Long-Term Illness Plans (upon eligibility).
 . Company paid garage parking.
 . Membership with athletic and dining room privileges at the Houston Center Club
  (100% of your initiation fee and 50% of your monthly dues will be paid by the
  Company).

I am enthusiastic about your joining the Novistar team and look forward to
working with you. If you have any question please do no hesitate to contact me a
(713) 753-1382.

Sincerely,

/s/ JOAN M. GALLAGHER

Joan M. Gallagher
Managing Director and Chief Administrative Officer

<PAGE><PAGE>

                                                                   EXHIBIT 10.20

                             [NOVISTAR LETTERHEAD]

                                August 29, 2000

Mr. John Sobchak
Novistar, Inc.
1331 Lamar, Suite 1650
Houston, Texas 77010

Dear John:

        When executed by you, this letter shall set forth certain terms and
conditions relating to your employment at Novistar. Novistar has previously
granted you 50,000 stock options in the Company, and has agreed, on an "at will"
basis, to pay you a base salary of $140,000 per year. As an inducement to secure
your employment, the Company has also agreed to the payment of Severance
Benefits (defined below) if, in the event of the sale, merger, or transfer of
the Company's assets resulting in a Change of Control of the Company, within
twelve months of the date of such Change of Control, (a) your employment is
terminated (other than for cause) or (b) there has been a Material Reduction in
your employment responsibilities or benefits.

                Change of Control means or shall be deemed to have occurred if
                and when the acquisition, by whatever means (including without
                limitation, amalgamation, consolidation, liquidation,
                arrangement or merger), by a person (or two or more persons who
                in such acquisition have acted jointly or in concert or intend
                to exercise jointly or in concert any voting rights attaching to
                the securities acquired), directly or indirectly, of the
                beneficial ownership of such number of voting securities or
                rights to voting securities of the Company, which together with
                such person's then owned voting securities and rights to voting
                securities, if any, represent (assuming the full exercise of
                such rights to voting securities) more than 25% of the combined
                voting power of the Company's then outstanding voting
                securities, together with the voting securities that would be
                outstanding on the full exercise of the rights to voting
                securities acquired and such person's previously owned rights to
                voting securities.
<PAGE>

Mr. John Sobchak
August 29, 2000
Page 2

                A Material Reduction in Sobchak's employment responsibilities
                means or shall be deemed to have occurred if and when he is
                assigned responsibilities or duties inconsistent with the duties
                of Chief Financial Officer, or his duties, responsibilities and
                status within the Company are significantly reduced. A material
                reduction in Sobchak's employment benefits shall be deemed to
                have occurred if and when there is a material reduction in the
                salary payable to Sobchak or any material failure by the Company
                to continue to provide Sobchak with the employment benefits to
                which he is currently entitled to participate in as of the date
                of this Agreement. In the event of a Material Reduction in
                Sobchak's responsibilities or employment benefits, Sobchak
                shall, at his election, give the Company at least eight weeks
                notice of his election to terminate his employment with the
                Company. The Company may at its election choose to waive or
                shorten this eight week notice requirement.

                Termination for Cause shall mean or shall be deemed to have
                occurred in the event of termination following (i) the willful
                failure or refusal of Sobchak to render services to the Company
                in accordance with the direction of the Board of Directors; such
                failure or refusal to be uncured and continuing for a period of
                not less than fifteen (15) days after notice outlining the
                situation is given by the Company to Sobchak; (ii) the
                commission by Sobchak of an act of fraud or embezzlement against
                the Company or the commission by Sobchak or any other action
                with the intent to injure the Company or (iii) Sobchak having
                been convicted of a felony.

        Upon the occurrence and satisfaction of such conditions, Sobchak shall
be entitled to the following Severance Benefits:

                a. A cash lump sum payment equal to two times the highest
                   annualized base salary in effect for Sobchak after the
                   Effective Date, payable within 10 working days of
                   termination.

                b. A twelve month extension on the termination of any vested
                   Novistar stock options held by Sobchak.

                c. The payment of the items described in items "a" and "b" above
                   shall have no effect on other employment benefits to which
                   Sobchak is entitled, other than severance payments currently
                   payable under the Torch Energy Advisors Incorporated
                   Severance Pay Plan or successor plans, which

<PAGE>

Mr. John Sobchak
August 29, 2000
Page 3

                   are not payable in the event of a payment under item "a"
                   above.

        The rights duties and obligations of the parties hereunder shall
terminate four (4) years from the date hereof. At that point, Novistar and
Sobchak shall either negotiate a new agreement governing his employment or the
severance benefits, if any, payable to Sobchak will be governed by severance
plans or agreements which may then be in existence at that time.

        If the foregoing is agreeable to you, please so indicate by executing
this agreement in the space provided for below.

                                          NOVISTAR, INC.

                                          /s/ THOMAS M. RAY III
                                          ------------------------------------
                                          Thomas M. Ray III
                                          President and Chief Executive Officer

Agreed and accepted this 29 day of August, 2000.

/s/ JOHN V. SOBCHAK
-------------------
John V. Sobchak

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]