Document:

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                                                                    EXHIBIT 10.2

                              SETTLEMENT AGREEMENT

         This Settlement Agreement (this "AGREEMENT"), dated as of the 8th day
of October 2002, is by and among EOTT Energy Partners, L.P., a Delaware limited
partnership, EOTT Energy Corp., a Delaware corporation, EOTT Energy General
Partner, LLC, a Delaware limited liability company, EOTT Energy Pipeline Limited
Partnership, a Delaware limited partnership, EOTT Energy Operating Limited
Partnership, a Delaware limited partnership, EOTT Energy Canada Limited
Partnership, a Delaware limited partnership, EOTT Energy Liquids, L.P., a
Delaware limited partnership, EOTT Energy Finance Corp., a Delaware corporation,
and EOTT Canada Ltd., an Alberta corporation (collectively, the "EOTT PARTIES"),
on the one hand, and Enron Corp., an Oregon corporation and as
debtor-in-possession, Enron North America Corp., a Delaware corporation and as
debtor-in-possession, Enron Energy Services, Inc., a Delaware corporation and as
debtor-in-possession, Enron Pipeline Services Company, a Delaware corporation,
EGP Fuels Company, a Delaware corporation, and Enron Gas Liquids, Inc., a
Delaware corporation and as debtor-in-possession (collectively, the "ENRON
PARTIES"), on the other. The EOTT Parties and the Enron Parties are collectively
referred to herein as the "PARTIES".

                                    RECITALS

         WHEREAS, the Parties have certain claims against and certain disputes
exist among one another;

         WHEREAS, Enron Corp., Enron North America Corp., Enron Energy Services,
Inc. and Enron Gas Liquids, Inc. are debtors in chapter 11 cases, styled In re
Enron Corp., et al., Case No. 01-16034 (AJG) (Chapter 11) (the "ENRON CHAPTER 11
CASES"), pending in the United States Bankruptcy Court for the Southern District
of New York (the "ENRON BANKRUPTCY COURT");

         WHEREAS, certain of the EOTT Parties intend to file for protection
under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court
for the Southern District of Texas; and

         WHEREAS, following extensive, arms' length and good faith negotiations,
the Parties desire to compromise and settle such claims and disputes as set
forth in this Agreement, and the Parties intend that the full terms and
conditions of their compromise and settlement be set forth in this Agreement;

         NOW, THEREFORE, in consideration of the recitals, covenants, releases,
and agreements contained herein, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Parties hereby
agree as follows:

                             AGREEMENT AND RELEASES

         1.       Definitions.

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         "Agreed Payments" means the rights of the Parties to payment pursuant
to paragraph B of the Stipulation.

         "Agreement" has the meaning assigned to such term in the Recitals.

         "Approval Date" means the date on which both the Final EOTT Order shall
have been entered in the EOTT Bankruptcy Court and the Final Enron Order shall
have been entered in the Enron Bankruptcy Court.

         "Assumed Obligations" has the meaning assigned to such term in Section
11 hereof.

         "Bankruptcy Code" means title 11 of the United States Code, as amended.

         "Business Day" means a day other than a Saturday, Sunday or such other
day on which commercial banks in Houston, Texas are authorized or required by
law to close.

         "Cash Payment" has the meaning assigned to such term in Section 5
hereof.

         "Claims" has the meaning assigned to such term in Section 8(a) hereof.

         "Closing Date" shall mean (i) the later of (a) the second Business Day
following the Approval Date and (b) the Effective Date (as such term is defined
under the Employee Transition Agreement) or (ii) such other date as agreed to by
the Parties.

         "Damages" has the meaning assigned to such term in Section 8(a) hereof.

         "Determination Order" has the meaning assigned to such term in Section
20 hereof.

         "Disputed Amount" has the meaning assigned to such term in Section 20
hereof.

         "Dispute Notice" has the meaning assigned to such term in Section 20
hereof.

         "EGPFC" means EGP Fuels Company, a Delaware corporation.

         "Employee Benefits Payments" means the Monthly Employee Benefits
Payments together with the Fixed Employee Benefits Amount.

         "Employees" has the meaning assigned to such term in Section 7 hereof.

         "Employee Transition Agreement" means the agreement between EPSC, EOTT
GP, EOTT Energy Pipeline Limited Partnership and EOTT Energy Operating Limited
Partnership, substantially in the form of Exhibit A hereto.

         "Enron" means Enron Corp., an Oregon corporation.

         "Enron Bankruptcy Court" has the meaning assigned to such term in the
Recitals.

         "Enron Chapter 11 Cases" has the meaning assigned to such term in the
Recitals.

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         "Enron Consent" means that certain written consent of Enron, as the
sole stockholder of the EOTT GP, consenting to the filing of a voluntary
petition in bankruptcy on behalf of EOTT GP and EOTT in the Southern District of
Texas, in the form of Exhibit B hereto.

         "Enron Corporate Services Agreement" means that certain Corporate
Services Agreement between Enron and EOTT GP, as general partner of EOTT, EOTT
Energy Operating Limited Partnership, EOTT Energy Pipeline Limited Partnership
and EOTT Energy Canada Limited Partnership, dated as of March 24, 1994, and any
amendments thereto, if any.

         "Enron Debtor Parties" means, collectively, Enron, Enron North America
Corp., Enron Energy Services, Inc., Enron Gas Liquids, Inc. and all such other
Enron Parties which are debtors in the Enron Chapter 11 Cases as of the date
hereof.

         "Enron Documents" means, collectively, this Agreement, the Employee
Transition Agreement, the Enron Consent, the ROFR Waiver, the Termination
Agreements, the Lien Releases and the Restructuring Agreement.

         "Enron Parties" has the meaning assigned to such term in the Recitals.

         "EOTT" means EOTT Energy Partners, L.P., a Delaware limited
partnership.

         "EOTT Bankruptcy Court" means the United States Bankruptcy Court for
the Southern District of Texas presiding over the EOTT Chapter 11 Cases.

         "EOTT Chapter 11 Cases" means the jointly administered chapter 11 cases
of the EOTT Parties.

         "EOTT Designee" means Randy Schorre.

         "EOTT Documents" means, collectively, this Agreement, the Employee
Transition Agreement, the Note, the Guaranty, the Letter of Credit, the
Termination Agreements and the Restructuring Agreement.

         "EOTT GP" means EOTT Energy Corp., a Delaware corporation.

         "EOTT Indemnity" has the meaning assigned to such term in Section 9
hereof.

         "EOTT LLC" means EOTT Energy General Partner, LLC, a Delaware limited
liability company.

         "EOTT Operating Subsidiaries" means, collectively, EOTT Energy Pipeline
Limited Partnership, a Delaware limited partnership, EOTT Energy Operating
Limited Partnership, a Delaware limited partnership, EOTT Energy Canada Limited
Partnership, a Delaware limited partnership, and EOTT Energy Liquids, L.P., a
Delaware limited partnership.

         "EOTT Parties" has the meaning assigned to such term in the Recitals.

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<PAGE>

         "EOTT Partnership Agreement" means the Amended and Restated Agreement
of Limited Partnership of EOTT Energy Partners, L.P., as amended.

         "EOTT Petition Date" means the date upon which the EOTT Chapter 11
Cases were commenced or, if the EOTT Chapter 11 Cases are not filed
concurrently, the last date upon which any of the EOTT Chapter 11 Cases are
commenced.

         "EOTT Plan of Reorganization" means the plan(s) of reorganization filed
by the EOTT Parties in the EOTT Chapter 11 Cases.

         "EPSC" means Enron Pipeline Services Company, a Delaware corporation.

         "EPSC Corporate Services Agreement" means that certain Corporate
Services Agreement between EOTT GP and EPSC, dated effective December 1, 2000,
and any amendments thereto, if any.

         "Excluded Enron Claims" has the meaning assigned to such term in
Section 8(a) hereof.

         "Excluded EOTT Claims" has the meaning assigned to such term in Section
8(b) hereof.

         "Existing Letters of Credit" means the letters of credit posted for the
benefit of TST Briar Lake Limited Partnership and Travelers/Aetna Property
Casualty Corp.

         "Final Enron Order" means an order of the Enron Bankruptcy Court, in
form and substance reasonably satisfactory to the EOTT Parties, approving the
Settlement Documents, the operation or effect of which has not been stayed,
reversed, vacated or modified in a manner that would deprive a Party of the
material benefits of the Settlement Documents, and as to which order the time to
appeal or to seek review or rehearing has expired and to which (a) no appeal or
request for review or rehearing was filed or (b) if an appeal or request for
review or rehearing was filed, such an appeal or request for review or rehearing
is no longer pending. The Final Enron Order shall include, without limitation,
the following: (i) the compromise and settlement set forth herein is the result
of good faith, arm's length negotiations; (ii) the compromise and settlement
reflected herein constitutes the exchange of reasonably equivalent value between
the Parties to resolve the claims and disputes as set forth in this Agreement;
(iii) the compromise and settlement set forth herein is fair and reasonable to
all Parties and in no way unjustly enriches any of the Parties; (iv) the
consideration to be exchanged pursuant to this compromise and settlement
(including, but not limited to, the obligations set forth in the Settlement
Documents) constitute the contemporaneous exchange of new value and legal, valid
and effective transfers; (v) the provisions of the Final Enron Order and any
actions taken pursuant thereto shall survive entry of any order which may be
entered (x) converting any of the Enron Chapter 11 Cases to a chapter 7 case,
(y) confirming or consummating any plan(s) of reorganization of any or all of
the Enron Debtor Parties, or (z) dismissing any of the Enron Chapter 11 Cases
and the terms and provisions of the Final Enron Order shall continue in this or
any superseding case under the Bankruptcy Code; (vi) the Note, the Guaranty, the
Letter of Credit and the Assumed Obligations contemplated by the compromise and
settlement and approved in the Final Order shall not be discharged by the entry
of an order confirming or consummating any plan(s) of reorganization of any or
all of the Enron Debtor Parties; (vii) the provisions of the Final Enron Order
shall inure to the benefit of the Enron Parties and shall be binding upon the
Enron Parties and their respective

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successors and assigns, including any trustee or other fiduciary hereafter
appointed as a legal representative of any of the Enron Debtor Parties and shall
also be binding upon all creditors of the Enron Debtor Parties and other parties
in interest and (viii) no subsequent orders or any confirmed plan of
reorganization shall change or modify any rights or obligations under this
Agreement.

         "Final EOTT Order" means an order of the EOTT Bankruptcy Court, in form
and substance reasonably satisfactory to the Enron Parties, approving the
Settlement Documents, the operation or effect of which has not been stayed,
reversed, vacated or modified in a manner that would deprive a Party of the
material benefits of the Settlement Documents, and as to which order the time to
appeal or to seek review or rehearing has expired and to which (i) no appeal or
request for review or rehearing was filed or (ii) if an appeal or request for
review or rehearing was filed, such an appeal or request for review or rehearing
is no longer pending. The Final EOTT Order shall include, without limitation,
the following: (i) the compromise and settlement set forth herein is the result
of good faith, arm's length negotiations; (ii) the compromise and settlement
reflected herein constitutes the exchange of reasonably equivalent value between
the Parties to resolve the claims and disputes as set forth in this Agreement;
(iii) the compromise and settlement set forth herein is fair and reasonable to
all Parties and in no way unjustly enriches any of the Parties; (iv) the
consideration to be exchanged pursuant to this compromise and settlement
(including, but not limited to, the obligations set forth in the Settlement
Documents) constitute the contemporaneous exchange of new value and legal, valid
and effective transfers; (v) the provisions of the Final EOTT Order and any
actions taken pursuant thereto shall survive entry of any order which may be
entered (x) converting any of the EOTT Chapter 11 Cases to a chapter 7 case, (y)
confirming or consummating any plan(s) of reorganization of any or all of the
EOTT Parties, or (z) dismissing any of the EOTT Chapter 11 Cases and the terms
and provisions of the Final EOTT Order shall continue in this or any superseding
case under the Bankruptcy Code; (vi) the provisions of the Final EOTT Order
shall inure to the benefit of the EOTT Parties and shall be binding upon the
EOTT Parties and their respective successors and assigns, including any trustee
or other fiduciary hereafter appointed as a legal representative of any of the
EOTT Parties and shall also be binding upon all creditors of the EOTT Parties
and other parties in interest and (vii) no subsequent orders or any confirmed
plan of reorganization shall change or modify any rights or obligations under
this Agreement.

         "Final Invoice" has the meaning assigned to such term in the Employee
Transition Agreement.

         "Fixed Employee Benefits Amount" means an amount equal to $1,356,000
less an amount equal to ($1,356,000/365) multiplied by the number of days
remaining in calendar year 2002 after the date of withdrawal of the EOTT Parties
from the Enron Corp. Cash Balance Plan.

         "Guaranty" means the guaranty of payments under the Note by the
Guarantors substantially in the form of Exhibit C hereto.

         "Guarantors" means EOTT Canada, Ltd. together with all existing and
future Subsidiaries of EOTT.

         "H&B Opinion" has the meaning assigned to such term in Section 17(h)
hereof.

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         "Indebtedness" of any Person means without duplication (i) all
indebtedness of such Person for borrowed money and (ii) all obligations of such
Person evidenced by notes, bonds, debentures or similar instruments or which
bear interest.

         "Indemnitee" has the meaning assigned to such term in Section 9 hereof.

         "Interim Invoices" means monthly invoices delivered by EPSC to the EOTT
Parties in accordance with the terms of the O&S Agreement for any period
beginning after July 31, 2002 and ending on the Transition Date.

         "Lehman" means Lehman Commercial Paper Inc., a New York corporation.

         "Letter of Credit" has the meaning assigned to such term in Section 6
hereof.

         "Lien Releases" means collectively, that certain release of liens held
by EPSC on assets of EOTT Parties in Mississippi, and that certain release of
liens held by EGPFC on assets of the EOTT Parties in Texas.

         "Monthly Employee Benefits Payments" means all amounts payable under
the monthly invoices, prepared in a manner consistent with past practice, issued
by Enron to any EOTT Party with respect to (i) the minimum contributions of such
Party for the Enron Cash Balance Plan and issued during the period beginning
with invoice number 105-0902, dated September 12, 2002, through the date of
withdrawal of such Party from such plan, (ii) the administration expenses
allocable to any EOTT Party with respect to the Enron Savings Plan issued to
such Party during the period beginning with invoice number 105-0902, dated
September 12, 2002, through the date of withdrawal of such Party from such plan
and (iii) participation by any EOTT Party in the Enron Retiree Medical Plan
issued to any EOTT Party for the period beginning on August 1, 2002 and ending
on the date of withdrawal of such Party from such plan.

         "Note" means the promissory note in the initial principal amount of
$6,211,673.13 made by EOTT to the order of Enron, and guaranteed by the
Guarantors substantially in the form of Exhibit D hereto.

         "Noteholders" means the holders of the 11% Senior Notes due 2009,
issued by EOTT Energy Partners, L.P. and EOTT Energy Finance Corp. pursuant to
that certain First Supplemental Indenture, dated October 1, 1999, which are
party to the Restructuring Agreement.

         "O&S Agreement" means that Operation and Service Agreement, dated
October 1, 2000, as amended, executed between EPSC and EOTT GP, as general
partner on behalf of EOTT Energy Operating Limited Partnership and EOTT Energy
Pipeline Limited Partnership.

         "O&S Indemnity" has the meaning assigned to such term in Section 10(a)
hereof.

         "Operating Partnerships" means, collectively, EOTT Energy Pipeline
Limited Partnership and EOTT Energy Operating Limited Partnership.

         "Operator Indemnitees" has the meaning assigned to such term in Section
10(a) hereof.

                                       6
<PAGE>

         "Parties" has the meaning assigned to such term in the Recitals.

         "Person" means any individual, sole proprietorship, partnership,
limited liability partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
public benefit corporation, other entity or government (whether federal, state,
county, city, municipal, local, foreign or otherwise, including any
instrumentality, division, agency, body or department thereof).

         "Released Affiliate" means, with respect to any EOTT Party or Enron
Party, as the case may be, any Person directly or indirectly controlled by such
Party or with respect to which such Party shares control. For purposes of this
definition, "control" means the possession of the power to direct or cause the
direction of management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

         "Released Enron Claims" has the meaning assigned to such term in
Section 8(a) hereof.

         "Released Enron Parties" has the meaning assigned to it in Section 8(b)
hereof.

         "Released EOTT Claims" has the meaning assigned to such term in Section
8(b) hereof.

         "Released EOTT Parties" has the meaning assigned to it in Section 8(a).

         "Restructuring Agreement" means that certain agreement entered into by
the Enron Parties, the EOTT Parties, the Noteholders, Lehman and Standard with
respect to the terms of a pre-negotiated plan of reorganization for the EOTT
Parties, substantially in the form of Exhibit E hereto.

         "ROFR Waiver" means the waiver by Enron of its right of first refusal
granted pursuant to Section 5.6 of that certain Purchase and Sale Agreement,
dated June 29, 2001, between Enron and EOTT, in the form of Exhibit F hereto.

         "SCTSC" means Standard Chartered Trade Services Corporation, a Delaware
corporation.

         "Settlement Documents" has the meaning assigned to such term hereof in
Section 3.

         "Standard" means Standard Chartered Bank, plc, a banking organization
existing under the laws of England and Wales.

         "Stipulation" means that certain Stipulation and Agreed Order Regarding
Rejection of Certain Contracts Between EOTT Energy Liquids, L.P. and Enron Gas
Liquids, Inc., dated April 2, 2002, and entered in the Enron Chapter 11 Cases.

         "Subsidiary" means, with respect to any Person, (i) any corporation of
which an aggregate of more than 50% of the outstanding stock having ordinary
voting power to elect a majority of the board of directors of such corporation
(irrespective of whether, at the time, stock of any other class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time, directly or indirectly, owned
legally or

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beneficially by such Person or one or more Subsidiaries of such Person, or with
respect to which any such Person has the right to vote or designate the vote of
50% or more of such Stock whether by proxy, agreement, operation of law or
otherwise and (ii) any partnership, limited liability partnership or limited
liability company in which such Person or one or more Subsidiaries of such
Person shall have an interest (whether in the form of voting or participation in
profits or capital contribution) of more than 50% or of which any such Person is
a general partner or managing member or may exercise the powers of a general
partner or managing member.

         "Taxes" means (i) all federal, state, local or foreign taxes, charges,
fees, imposts, levies or other assessments, including, without limitation, all
net income, gross receipts, capital, sales, use, ad valorem, value added,
transfer, franchise, profits, inventory, capital stock, license, withholding,
payroll, employment, social security, unemployment, excise, severance, stamp,
occupation, property and estimated taxes, customs duties, fees, assessments and
charges of any kind whatsoever, (ii) all interest, penalties, fines, additions
to tax or additional amounts imposed by any taxing authority in connection with
any item described in clause (i) and (iii) any transferee liability in respect
of any items described in clauses (i) and/or (ii).

         "Termination Agreements" means those certain agreements between the
applicable EOTT Parties and the applicable Enron Parties wherein the Parties
mutually agree to terminate each of the EPSC Corporate Services Agreement, the
Enron Corporate Services Agreement and the Transition Services Agreement, in the
form of Exhibits G-1, G-2 and G-3, respectively.

         "Transition Date" means the date on which the transition of employees
pursuant to the Employee Transition Agreement is completed.

         "Transition Expenses" has the meaning assigned to such term in the
Employee Transition Agreement.

         "Transition Services Agreement" means that certain Transition Services
Agreement, dated June 29, 2001, between EGPFC and EOTT GP.

         "Undisputed" with respect to any payment by any EOTT Party, means that
portion of such payment (i) which is not disputed in good faith by such EOTT
Party after consultation with Enron and the good faith efforts by such EOTT
Party to resolve such dispute or (ii) which is determined to be payable pursuant
to Section 20 hereof.

         "Withdrawal Date" has the meaning assigned to such term in Section 7
hereof.

         2. Execution of Agreements. Contemporaneously with the execution of
this Agreement, and as further consideration for this Agreement, the Parties
shall execute and deliver the Employee Transition Agreement, the Termination
Agreements and the Restructuring Agreement and Enron shall deliver the Enron
Consent to EOTT. As further consideration for this Agreement and as a compromise
of certain claims, on and subject to the occurrence of the Closing Date, (i)
EOTT shall execute and deliver the Note and the Guaranty, (ii) EOTT shall cause
to be delivered the Letter of Credit, (iii) Enron shall execute the ROFR Waiver
and (iv) EPSC and EGPFC shall execute the Lien Releases.

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         3. Court Approval. Within 10 Business Days following the later of (i)
the execution of this Agreement and (ii) the EOTT Petition Date, the Enron
Parties shall file with the Enron Bankruptcy Court and the EOTT Parties shall
file with the EOTT Bankruptcy Court motions seeking entry of an order approving
this Agreement, the Employee Transition Agreement, the Note, the Guaranty, the
Letter of Credit, the Termination Agreements, the Enron Consent, the ROFR Waiver
and the Lien Releases (collectively, the "SETTLEMENT DOCUMENTS"). Such motions
shall be in form and substance reasonably satisfactory to the other Parties.

         4. EOTT Bar Date. The EOTT Parties shall agree that the deadline for
each of the Enron Parties to file a proof of claim or proof of interest in any
of the EOTT Chapter 11 Cases shall be extended to the earlier of (i) 10 Business
Days following entry of a final nonappealable order confirming a plan of
reorganization in all of the EOTT Chapter 11 Cases incorporating this Settlement
and (ii) the date 180 days after the EOTT Petition Date. To the extent that the
Settlement Documents are approved in the Final EOTT Order and the Final Enron
Order and the Closing occurs as described herein, the Enron Parties shall not be
required to file any proofs of claim or proofs of interest and no right of any
Enron Party under any Settlement Document shall be effected or otherwise
prejudiced in any way as a result of the failure of any Enron Party to file any
such proof of claim or proof of interest.

         5. Cash Payment. As further consideration for this Agreement and as a
compromise of certain claims, subject to the satisfaction of all other
conditions precedent to the effectiveness of the EOTT Plan of Reorganization, on
or before the effective date of the EOTT Plan of Reorganization EOTT shall pay
to Enron by wire transfer of immediately available funds the sum of one million
two hundred fifty thousand dollars ($1,250,000) (the "CASH PAYMENT"). The EOTT
Parties agree that payment of the Cash Payment pursuant to this Section 5 shall
be a condition precedent to the effectiveness of the EOTT Plan of
Reorganization. The EOTT Parties further agree that such condition precedent may
be waived only in writing by Enron, on behalf of the Enron Parties.

         6. Letter of Credit. As further consideration for this Agreement and as
security for the Note, EOTT shall cause to be delivered an irrevocable letter of
credit for the account of Enron (the "LETTER OF CREDIT"). The Letter of Credit
shall be issued and payable by Standard or such other bank acceptable to Enron,
shall be in form and substance acceptable to Enron and shall remain in full
force and effect until the date 10 Business Days after the maturity date of the
Note. The foregoing term notwithstanding, the Letter of Credit may have an
expiration date ending prior to the maturity date of the Note provided that (i)
such Letter of Credit shall, in each case, be renewed (in form and substance
satisfactory to Enron) and delivered to Enron not later than 10 Business Days
prior to its expiry and (ii) a Letter of Credit (in form and substance
satisfactory to Enron) with respect to the Note shall remain in force at all
times up to the date 10 Business Days after the maturity date of the Note. The
Letter of Credit, and each renewal thereof, shall initially be in an amount
equal to five million dollars ($5,000,000); provided, however, that on the first
Business Day after the earlier of the effective date of the EOTT Plan of
Reorganization and 180 days after the EOTT Petition Date, the total amount
available to Enron under such Letter of Credit shall be increased to an amount
equal to (i) the maximum principal outstanding under the Note (including any
amounts that may be capitalized) on the expiry date of such Letter of Credit
plus (ii) the interest payable thereon through the date one month after the
expiry date of such Letter of Credit. Enron shall be entitled to draw down any
portion or the full

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amount of such Letter of Credit in the event (i) a default occurs under any
Settlement Document and is continuing on the date three Business Days after the
receipt by EOTT of notice from Enron of such default (provided that Enron shall
only be able to draw on the Letter of Credit in an amount equal to the principal
amount then outstanding under the Note (including any amounts that may be
capitalized) plus the interest accrued thereon through such date plus any other
amount due on the Note, if any) and (ii) a renewed Letter of Credit is not
delivered to Enron when and on the date required by this Section 6 (provided
that Enron shall only be able to draw on the Letter of Credit in an amount equal
to the principal amount then outstanding under the Note (including any amount
capitalized) plus the interest accrued thereon through such date plus any other
amount due on the Note, if any). The Letter of Credit shall be returned to EOTT
for termination upon payment in full of all amounts payable under the Note.

         7. Employee Benefits.

                  (a) The employees, former employees and their covered spouses
and dependents of EOTT GP (collectively, the "EMPLOYEES") may continue to
participate in the Enron retirement and welfare benefit plans in which they
participate as of the date hereof; provided, however, that the EOTT Parties
shall take all such actions necessary to withdraw from all such Enron retirement
and welfare benefit plans, including, without limitation, the implementation of
all such pension and welfare benefit plans for the Employees as may be required
by applicable law, on the earlier of (i) the effective date of the EOTT Plan of
Reorganization and (ii) 180 days after the EOTT Petition Date (the "WITHDRAWAL
DATE"). For the avoidance of doubt, nothing in this Section 7 shall be deemed to
restrict the EOTT Parties from withdrawing from the applicable Enron retirement
and welfare benefit plans prior to the Withdrawal Date.

                  (b) As consideration for the continuation of the Employees in
such plans, and as further consideration for this Agreement and as a compromise
of certain claims, EOTT shall pay (i) all Undisputed Monthly Benefits Payments
within 10 Business Days after the receipt by EOTT of an invoice with respect to
the same and (ii) the Fixed Employee Benefits Amount in 12 equal installments on
the first Business Day of each month beginning on January 2, 2003.

         8. Releases.

                  (a) Enron Parties' Release of Released EOTT Parties. Except
with respect to any Excluded Enron Claims (as defined below), on the Closing
Date, the Enron Parties, for themselves and each of their successors and
assigns, shall and hereby do release, acquit and forever discharge the EOTT
Parties, together with each of their respective current and former principals,
officers, directors, managers and employees, and each of their respective
current and former parent companies, subsidiaries, Released Affiliates, agents,
financial advisors, attorneys, trustees, accountants, insurers, predecessors,
successors, assigns, indemnitees and representatives of any kind (collectively
the "RELEASED EOTT PARTIES"), (i) from and against any and all liability, (ii)
from all claims, judgments, demands, liens, actions, administrative proceedings,
and causes of action of every kind and nature, whether derivative or otherwise,
including, without limitation, avoidance actions under chapter 5 of the
Bankruptcy Code or applicable state law (collectively, "CLAIMS"), and (iii) from
all damages, injuries, contributions, indemnities, compensation, obligations,
costs, attorney's fees and expenses of every kind and nature

                                       10
<PAGE>

whatsoever, whether known or unknown, fixed or contingent, whether in law or in
equity, whether sounding in tort or in contract and whether or not asserted
(collectively, "DAMAGES"), insofar as such liabilities, Claims or Damages arise
out of or in connection with the actions or omissions of any Released EOTT Party
prior to the Closing Date (such liabilities, Claims and Damages, the "RELEASED
ENRON CLAIMS"), including, except for any Excluded Enron Claims, any claims for
payment by any Enron Party owed or due prior to the date hereof under any of the
O&S Agreement, the Enron Corporate Services Agreement, the EPSC Corporate
Services Agreement and the Transition Services Agreement. For purposes of this
Section 8, and notwithstanding anything to the contrary contained herein,
"EXCLUDED ENRON CLAIMS" means (i) all rights with respect to the EOTT Indemnity,
(ii) all rights with respect to the O&S Indemnity, (iii) any payments due under
the O&S Agreement for the period beginning August 1, 2002 through the Transition
Date, including, without limitation, payments for any Interim Invoice, the Final
Invoice and the Transition Expenses, (iv) all rights with respect to the Agreed
Payments, (v) all rights with respect to the Employee Benefits Payments, (vi)
all rights of Enron under the Note, the Guaranty and the Letter of Credit, (vii)
all rights with respect to the Cash Payment, (ix) all rights under any
Settlement Document and (x) all liabilities, Claims and/or Damages with respect
to or arising as a result of or in connection with the enforcement of any such
rights and/or collection on any such claims.

                  (b) EOTT Parties' Release of the Released Enron Parties.
Except with respect to the Excluded EOTT Claims, on the Closing Date, the EOTT
Parties, for themselves and each of their predecessors, successors and assigns,
shall and hereby do release, acquit and forever discharge (i) the Enron Parties,
together with each of their respective current and former principals, officers,
directors, managers and employees, and each of their respective current and
former parent companies, subsidiaries, Released Affiliates, agents, financial
advisors, attorneys, trustees, accountants, insurers, predecessors, successors,
assigns, indemnitees and representatives of any kind, if any, and (ii) any
person who was, but, as of the date of this Agreement, no longer is an officer
or director of EOTT GP (collectively the "RELEASED ENRON PARTIES") from and
against any and all liability and from all Claims and Damages insofar as such
liabilities, Claims or Damages arise out of or in connection with the actions or
omissions of any Released Enron Party prior to the Closing Date (such
liabilities, Claims and Damages, the "RELEASED EOTT CLAIMS"), including, without
limitation, any claims for payment by any Enron Party owed or due prior to the
date hereof under any of the O&S Agreement (other than any claims for payment
under the O&S Indemnity), the Enron Corporate Services Agreement, the EPSC
Corporate Services Agreement and the Transition Services Agreement. On the
Closing Date, all claims for which the EOTT Parties have filed a proof of claim
in the Enron Chapter 11 Cases in the Bankruptcy Court shall be disallowed and
expunged in their entirety without the necessity of the filing of any additional
pleadings. For purposes of this Section 8, and notwithstanding anything to the
contrary contained herein, "EXCLUDED EOTT Claims" means (i) all rights with
respect to the Agreed Payments, (ii) all rights with respect to the O&S
Indemnity, (iii) any claim against any person who was, but, as of the date of
this Agreement no longer is, an officer or director of EOTT GP for acts of fraud
or willful misconduct, (iv) all rights under any Settlement Document and (v) all
liabilities, Claims and/or Damages with respect to or arising as a result of or
in connection with the enforcement of such right and/or collection on any such
claims.

                  (c) EXCEPT AS OTHERWISE PROVIDED HEREIN, EACH OF THE PARTIES
HEREBY EXPRESSLY AGREES THAT THE LIABILITIES, CLAIMS

                                       11
<PAGE>

AND/OR DAMAGES RELEASED HEREBY SHALL INCLUDE, WITHOUT LIMITATION, SUCH
LIABILITIES, CLAIMS AND/OR DAMAGES ARISING PRIOR TO THE CLOSING DATE AS A DIRECT
OR INDIRECT RESULT OF THE NEGLIGENCE OF ANY OTHER PARTY HERETO.

                  (d) The release of each Party contained herein is a final
release, even if there may exist a mistake on the part of any Party or all
Parties to this Agreement as to the extent and nature of the claims, injuries,
and damages of any Party against any other Party.

                  (e) For the avoidance of doubt, the Parties hereby acknowledge
and agree that the releases, acquittals and discharges contained herein shall
not apply to any right provided or any liability, Claim and/or Damage arising
under or in connection with this Agreement and the other Settlement Documents.

         9. EOTT Indemnity. To the fullest extent permitted by law but subject
to the limitations expressly provided in this Section 9, the EOTT Parties shall
indemnify (i) Enron, (ii) any person who is or was an officer, director or
employee of Enron and (iii) any person who was but, as of the date of this
Agreement no longer is, an officer or director of EOTT GP (Enron and each such
person, an "INDEMNITEE") from and against any and all losses, claims, damages,
liabilities, joint or several, expenses (including, without limitation, legal
fees and expenses), judgments, fines, penalties, interest, settlements and other
amounts resulting from any and all actions, suits or proceedings but only
insofar as such actions, suits or proceeding are (a) EOTT derivative actions or
suits or proceedings relating to EOTT derivative actions and (b) based on
actions taken, or the failure to take any action, on or after April 10, 2002;
provided, however, that in each case the Indemnitee acted in good faith and in a
manner which such Indemnitee believed to be in, or not opposed to, the best
interest of EOTT and, with respect to any criminal proceeding, had no reasonable
cause to believe its, his or her conduct was unlawful (the "EOTT Indemnity").
For the avoidance of doubt, the EOTT Indemnity shall not apply to losses,
claims, damages, liabilities, joint or several, expenses (including, without
limitation, legal fees and expenses), judgments, fines, penalties, interest,
settlements and other amounts directly resulting from acts of fraud or the
willful misconduct by an Indemnitee. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere, or its equivalent, shall not create a presumption that the
Indemnitee acted in a manner contrary to that specified above.

         10. O&S Indemnity.

                  (a) To the fullest extent permitted by applicable law, each of
EOTT GP and the Operating Partnerships shall and does hereby agree to indemnify,
protect, hold harmless and defend EPSC and its legal representatives, agents,
employees, officers, directors, shareholders, subsidiaries and affiliates
(collectively, the "OPERATOR INDEMNITEES") from and against any and all losses
arising from, by reason of or in connection with (i) any failure of EOTT GP to
duly perform or observe any term, provision, covenant or agreement to be
performed or observed by EOTT GP pursuant to the O&S Agreement, (ii) the
ownership by EOTT GP or the Operating Partnerships, and the operation by EPSC
and its affiliates of the Facilities (as such term is defined in the O&S
Agreement), (iii) refusal of EOTT GP to approve EPSC recommended items for
inclusion in the budgets or (iv) refusal of EOTT GP to approve EPSC recommended

                                       12
<PAGE>

corrections, additions or modifications to the budgets; provided, however, that
neither EOTT GP nor the Operating Partnerships shall be required to indemnify
any Operator Indemnitee for losses caused by or resulting from the gross
negligence or willful misconduct of EPSC or its employees or agents (the "O&S
INDEMNITY").

                  (b) To the fullest extent permitted by applicable law, EPSC
shall and does hereby agree to indemnify, protect, hold harmless and defend EOTT
GP and its legal representatives, agents, employees, officers, directors,
subsidiaries and affiliates from and against any and all losses arising from the
gross negligence or willful misconduct of EPSC or its employees, agents or
representatives in the performance of the services under the O&S Agreement.

                  (c) Notwithstanding Sections 10(a) and (b) above, when any
losses result from the joint or concurrent negligence in the case of EOTT GP or
gross negligence in the case of EPSC or willful misconduct of both parties
hereto, such Parties' obligation to indemnify shall be in proportion to each
Party's allocable share of joint or concurrent negligence or willful misconduct.

         11. Assumed Obligations; Interim Invoices; Administrative Claims. The
EOTT Parties shall assume in the EOTT Chapter 11 Cases and cure the O&S
Agreement through (i) the payment of all Undisputed amounts payable under any
Interim Invoice within 15 days after the receipt of any such invoice, (ii) the
payment of the Final Invoice and the Transition Expenses pursuant to the terms
of the Employee Transition Agreement and (iii) the continued effectiveness of
the O&S Indemnity as provided in this Agreement. The EOTT Parties shall pay all
Undisputed amounts under any Interim Invoices when due and payable in accordance
with the terms and provision of the O&S Agreement. This Agreement, the Agreed
Payments, the Employee Benefits Payments, the Final Invoice, the Transition
Expenses, the EOTT Indemnity and the O&S Indemnity shall be assumed by the EOTT
Parties in the EOTT Chapter 11 Cases pursuant to the Final EOTT Order and shall
be deemed to constitute chapter 11 administrative claims against the EOTT
Parties in the EOTT Bankruptcy Cases and, upon confirmation and consummation of
a plan(s) of reorganization for any of the EOTT Parties, except as provided in
Section 8 above, shall not be discharged and, instead, shall constitute ongoing
obligations of the reorganized entities or their successor(s). The Cash Payment,
the Note, the Guaranty, the Letter of Credit and the Employee Benefits Payments
shall be deemed to constitute chapter 11 administrative claims against the EOTT
Parties in the EOTT Chapter 11 Cases and, upon confirmation and consummation of
a plan(s) of reorganization for any of the EOTT Parties, shall not be discharged
and, instead, shall constitute ongoing obligations of the reorganized entities
or their successor(s). The obligations to be assumed by the EOTT Parties
pursuant to this Section 11 are collectively referred to as the "ASSUMED
OBLIGATIONS").

         12. Unknown Damages. Each of the Parties expressly agrees as further
consideration for this Agreement that, upon the Closing Date, this Agreement
shall apply to all unknown and any unanticipated injuries and damages of the
respective Parties, as well as those now known by the Parties, arising out of or
in connection with the actions or omissions of any Party prior to the Closing
Date, and expressly waives any applicable state law that may hold to the
contrary.

         13. No Set Off or Recoupment. Except as may be consented to in writing
by Enron, no EOTT Party shall be entitled to, and none of them will, exercise
any right of set off or

                                       13
<PAGE>

recoupment against (i) the Cash Payment, (ii) any Agreed Payments (except as
provided in the Stipulation), (iii) amounts payable under the Note, the
Guaranty, the Letter of Credit, the O&S Indemnity or the EOTT Indemnity, (iv)
amounts payable as Transition Expenses or Employee Benefits Payments or (v)
amounts invoiced on any Interim Invoice or the Final Invoice.

         14. Transition of Services. In order to facilitate the transition of
services provided by EPSC pursuant to the O&S Agreement in accordance with the
terms of the Employee Transition Agreement, upon execution of this Agreement,
the EOTT Designee shall be provided access to all operational information and
personnel utilized in the services provided by EPSC and the Enron Parties shall
use commercially reasonable efforts to include the EOTT Designee in discussions
regarding significant operational services provided under the O&S Agreement. The
foregoing notwithstanding, nothing contained in this Agreement shall be
construed as requiring the consent of the EOTT Designee as a condition to the
taking of any action or for the provision of any services under the O&S
Agreement, except where the consent or approval of EOTT is required as provided
in the O&S Agreement.

         15. Representations and Warranties of the Enron Parties. The Enron
Parties represent and warrant that:

                  (a) they have not assigned, hypothecated or otherwise
alienated any claims, rights or causes of action to be released on the Closing
Date as contemplated by this Agreement nor any part thereof;

                  (b) subject to the entry of a Final Enron Order, the
applicable Enron Party has the absolute and unrestricted right, power and
authority to execute and deliver each of the Enron Documents, and to perform its
respective obligations hereunder and thereunder and to release the claims
specified in Section 8(a) above;

                  (c) subject to the entry of a Final Enron Order, upon the
execution and delivery of such documents, each of the Enron Documents will
constitute legal, valid and binding obligations of the Enron Parties party
thereto, in accordance with their respective terms;

                  (d) subject to the entry of a Final Enron Order, neither the
execution and delivery of any Enron Document nor the consummation or performance
of any of the transactions contemplated hereby and thereby will give any person
the right to prevent, delay or otherwise interfere with any of the contemplated
transactions pursuant to (i) any provision of the charter, bylaws, or other
constituent documents of the Enron Parties, (ii) any resolution adopted by the
stockholders, the Board of Directors, or any committee thereof, of the Enron
Parties, (iii) any legal requirement or order to which any Enron Party may be
subject or (iv) any contract which any Enron Party has executed or by which an
Enron Party may be bound, subject to the right of any party-in-interest to
appear and be heard pursuant to section 1109 of the Bankruptcy Code to object to
the approval of any Enron Document;

                  (e) the applicable boards of directors of the Enron Parties
have authorized the execution and delivery of the Enron Documents; and

                  (f) no promise or agreement which is not expressed herein or
in the other Settlement Documents has been made to any Enron Party in executing
each of the Enron

                                       14
<PAGE>

Documents, and none of the Enron Parties is relying upon any statement or
representation of any agent of the EOTT Parties.

         16. Representations and Warranties of the EOTT Parties. The EOTT
Parties represent and warrant that:

                  (a) they have not assigned, hypothecated or otherwise
alienated any claims, rights or causes of action to be released on the Closing
Date as contemplated by this Agreement nor any part thereof;

                  (b) the applicable EOTT Party has the absolute and
unrestricted right, power and authority to execute and deliver the EOTT
Documents, and to perform its respective obligations hereunder and thereunder
and to release the claims specified in Section 8(b) above;

                  (c) subject to the entry of the Final EOTT Order, upon the
execution and delivery of such documents, each of the EOTT Documents will
constitute legal, valid and binding obligations of the EOTT Parties party
thereto, in accordance with their respective terms;

                  (d) subject to the entry of a Final EOTT Order, neither the
execution and delivery of any EOTT Document nor the consummation or performance
of any of the transactions contemplated hereby and thereby will give any person
the right to prevent, delay or otherwise interfere with any of the contemplated
transactions pursuant to (i) any provision of charter, bylaws, or other
constituent documents of the EOTT Parties, (ii) any resolution adopted by the
unitholders, members, stockholders, the board of directors, or any committee
thereof, of the EOTT Parties, (iii) any legal requirement or order to which any
EOTT Party may be subject or (iv) any contract which any EOTT Party has executed
or by which any EOTT Party may be bound, subject to the right of any
party-in-interest to appear and be heard pursuant to section 1109 of the
Bankruptcy Code to object to the approval of any EOTT Document;

                  (e) the Restructuring Committee of the Board of Directors of
EOTT GP has authorized, and, pursuant to Section 6.9 of the EOTT Partnership
Agreement, the Audit Committee of the Board of Directors of EOTT GP has
approved, the execution and delivery of each of the EOTT Documents, where
applicable, for itself, in its capacity as the general partner on behalf of EOTT
and in its capacity as the managing member on behalf EOTT LLC; and EOTT LLC has
authorized the execution and delivery of this Agreement, the Employee Transition
Agreement, the Termination Agreements and the Restructuring Agreement in its
capacity as the general partner on behalf of each of the EOTT Operating
Subsidiaries;

                  (f) no promise or agreement which is not expressed herein or
in the other Settlement Documents has been made to any EOTT Party in executing
each of the EOTT Documents, and none of the EOTT Parties is relying upon any
statement or representation of any agent of the Enron Parties; and

                  (g) the entities listed on Schedule 16(g) constitute all of
the direct or indirect Subsidiaries of EOTT.

                                       15
<PAGE>

         17. Conditions of the Enron Parties to Closing. The obligations of the
Enron Parties contemplated by this Agreement shall be subject to satisfaction of
the following conditions on or prior to the Closing Date, which may be waived by
Enron on behalf of the Enron Parties:

                  (a) the EOTT Parties, the Noteholders, Lehman, SCTSC and
Standard shall have executed and delivered the Restructuring Agreement;

                  (b) the EOTT Parties shall have executed and delivered the
Employee Transition Agreement and the Termination Agreements;

                  (c) the EOTT Parties shall have executed and delivered the
documents required by Section 19 below;

                  (d) the EOTT Parties shall have paid in full, when due and
payable, all Undisputed Employee Benefits Payments and all Undisputed amounts
under the Interim Invoices;

                  (e) the representations and warranties of the EOTT Parties
contained herein shall be true and correct;

                  (f) no EOTT Party shall have breached any term or condition of
any Settlement Document;

                  (g) the Existing Letters of Credit shall have been terminated
and the funds posted therefor shall have been returned, without set off or
recoupment, to Enron;

                  (h) the EOTT Parties shall deliver to Enron an opinion of
counsel, in form and substance reasonably acceptable to Enron, that each of the
Agreement, the Note, the Guaranty, the Letter of Credit, the Termination
Agreements, the Employee Transition Agreement and the Restructuring Agreement
has been duly authorized, validly executed and delivered and, assuming the due
authorization, valid execution and delivery by (i) the applicable Enron Parties
in the case of this Agreement, the Termination Agreements, the Employee
Transition Agreement and the Restructuring Agreement and (ii) Lehman, SCTSC,
Standard and the Noteholders in the case of the Restructuring Agreement, is
enforceable against the EOTT Parties in accordance with their respective terms
(the "H&B OPINION"); and

                  (i) the EOTT Bankruptcy Court shall have entered the Final
EOTT Order.

         18. Conditions of the EOTT Parties to Closing. The obligations of the
EOTT Parties contemplated by this Agreement shall be subject to satisfaction of
the following conditions on or prior to the Closing Date, which may be waived by
EOTT on behalf of the EOTT Parties:

                  (a) the Enron Parties shall have executed and delivered the
Restructuring Agreement, the Enron Consent, the Employee Transition Agreement
and the Termination Agreements;

                  (b) Lehman, SCTSC and Standard shall have executed and
delivered the Restructuring Agreement;

                                       16
<PAGE>

                  (c) the Enron Parties shall have executed and delivered the
documents required by Section 19 below;

                  (d) the representations and warranties of the Enron Parties
contained herein shall be true and correct;

                  (e) no Enron Party shall have breached any term or condition
of any Settlement Document; and

                  (f) the Enron Bankruptcy Court shall have entered the Final
Enron Order.

         19. Closing.

                  (a) On the Closing Date, subject to the satisfaction of the
conditions set forth in Section 17:

                           (i)      Enron shall execute and deliver the ROFR
                                    Waiver; and

                           (ii)     EPSC and EGPFC shall execute and deliver the
                                    Lien Releases.

                  (b) On the Closing Date, subject to satisfaction of the
conditions set forth in Section 18:

                           (i)      EOTT shall make and deliver the Note;

                           (ii)     the Guarantors shall execute and deliver the
                                    Guaranty;

                           (iii)    EOTT shall cause to be delivered the Letter
                                    of Credit;

                           (iv)     the EOTT Parties shall pay in full all
                                    Undisputed Transition Expenses, all
                                    Undisputed amounts under the Final Invoice
                                    by wire transfer to Enron of immediately
                                    available funds;

                           (v)      the EOTT Parties shall deliver the H&B
                                    Opinion; and

                           (vi)     EOTT shall return to Enron for cancellation
                                    that certain promissory note, dated March
                                    25, 1994, made to the order of EOTT by Enron
                                    in the principal amount of $35,000,000.

         20. Disputed Payments. If any EOTT Party shall, in good faith, dispute
any portion of any amounts due and payable under any Interim Invoice or the
Final Invoice, or as an Employee Benefit Payment or Transition Expenses (such
amounts, a "DISPUTED AMOUNT"), such EOTT Party shall be entitled to withhold
such Disputed Amount; provided, however, that such EOTT Party shall provide the
Enron Parties with written notice of such dispute (a "DISPUTE Notice") within
five Business Days prior to the date such payment is due and payable and such
notice must include documentation reasonably substantiating such dispute. The
EOTT Parties and the Enron Parties shall make a good faith effort to resolve
mutually such dispute expeditiously. If the EOTT Parties and the Enron Parties
have not mutually resolved such

                                       17
<PAGE>

dispute within five Business Days after receipt of a Dispute Notice by the Enron
Parties, then the dispute shall be submitted to the Enron Bankruptcy Court for
determination. In the event the Enron Bankruptcy Court shall determine to be
payable to the Enron Parties any portion or all of a Disputed Amount, the EOTT
Parties shall pay such amount to Enron, on behalf of the applicable Enron Party,
together with interest thereon from the date such amount was originally due and
payable at a rate equal to 6% per annum, on the 12th day following the entry of
the order of the Enron Bankruptcy Court with respect to such determination (a
"DETERMINATION ORDER"). In the event an appeal is filed with respect to a
Determination Order prior to the 11th day following the entry of such order,
Enron shall hold all funds received from the EOTT Parties in the Enron account
designated for the deposit of settlement proceeds pursuant to the Determination
Order and shall not use nor dispurse such funds, or the interest earned thereon,
until the earlier of (i) a further order of the Enron Bankruptcy Court, upon
notice and a hearing, directing such disbursement and (ii) the dismissal or
final adjudication in favor of the Enron Parties of any such appeal. The funds
so held shall be dispursed in accordance with the determinations made in any
such appeal.

         21. Mutual Covenants Not to Sue.

                  (a) Subject to the terms and conditions set forth in this
Agreement and except with respect to the exclusion of certain claims pursuant to
this Agreement, each of the Enron Parties hereby warrants, covenants and agrees
that from and after the Closing Date, it will not sue or otherwise commence any
legal action against any of the Released EOTT Parties with respect to any of the
Released Enron Claims.

                  (b) Subject to the terms and conditions set forth in this
Agreement and except with respect to the exclusion of certain claims pursuant to
this Agreement, each of the EOTT Parties hereby warrants, covenants and agrees
that from and after the Closing Date it will not sue or otherwise commence any
legal action against any of the Released Enron Parties with respect to any of
the Released EOTT Claims.

         22. Closing Date; Return to Status Quo. If (i) the Enron Bankruptcy
Court and the EOTT Bankruptcy Court do not approve the Settlement Documents or
if, upon appeal from an order of either the Enron Bankruptcy Court or the EOTT
Bankruptcy Court approving the Settlement Documents, such order is vacated or
modified in a manner that would deprive a Party of the material benefits of the
Settlement Documents or (ii) the Closing Date does not occur on or prior to
January 2, 2003, then, in either case, the Settlement Documents, and all orders
and proceedings had in connection therewith shall thereupon become null and void
without further action by any Party hereto and the Parties shall be restored to
their respective status quo ante. In the event the Parties are returned to their
respective status quo ante, no information obtained nor any statements made in
the course of the negotiation or preparation of the Settlement Documents shall
be used by any of the Parties against any other Party, no such information or
statements shall be an admission against any such Party, nor shall any such
information or statement be admissible in any administrative or legal
proceeding.

         23. Publicity. The Parties agree that, prior to issuing any press
release announcing or describing the settlement contained in this Agreement, the
Parties shall provide each other with a written copy of such press release and
permit the other Parties to comment thereon and be

                                       18
<PAGE>

advised when such release will be issued; provided that the Parties are
expressly authorized to describe the settlement contained herein and/or attach
copies of any Settlement Document to the motion filed with the Enron Bankruptcy
Court and/or the EOTT Bankruptcy Court.

         24. Attorney's Fees, Expenses, and Costs. The Parties agree that, other
than with respect to the Transition Expenses, each Party is solely responsible
for the attorneys' fees, expenses and costs incurred by such Party in connection
with the negotiation, preparation, execution or performance of the Settlement
Documents.

         25. Consultation with Attorneys. The Parties understand and acknowledge
that this is a legal release of any and all claims that they, or any of them,
may have against each other that were asserted or could have been asserted, and
each of them represents and acknowledges that it has had the opportunity to
retain independent counsel to represent it in connection with its consideration
of this Agreement and the other Settlement Documents. Each Party represents and
warrants that it has each undertaken its own investigation of the facts and is
relying solely upon its own knowledge and the advice of counsel. The Parties
represent and warrant that they have each consulted with independent counsel and
other advisors with respect to the preparation, negotiation, and execution of
the Settlement Documents to the extent they deemed such consultation necessary
or appropriate, and have been provided with a reasonable period of time to
consider and execute the Settlement Documents. The Parties, therefore, stipulate
and agree that no Settlement Document shall be construed against any Party as
the drafter thereof. All provisions of the Settlement Documents have been
negotiated by the Parties at arm's length, and no Party shall be deemed the
scrivener of any Settlement Document. The Parties agree and direct that the rule
of contract construction providing that ambiguous contract terms should be
construed against the drafting party shall not apply nor be applied to any
Settlement Document.

         26. FORUM SELECTION CLAUSE. SHOULD ANY DISPUTE ARISE CONCERNING THE
CONSTRUCTION AND/OR ENFORCEMENT OF ANY SETTLEMENT DOCUMENT, THE PARTIES HEREBY
SPECIFICALLY AGREE AND CONSENT THAT ANY CONTROVERSY, CLAIM, OR DISPUTE ARISING
OUT OF OR RELATING TO SUCH SETTLEMENT DOCUMENT, OR ANY ALLEGED BREACH THEREOF,
INCLUDING (WITHOUT LIMITATION) ANY DISPUTE REGARDING THE EXECUTION, BREACH OR
COMPLIANCE WITH SUCH SETTLEMENT DOCUMENT, OR CLAIMS FOR EQUITABLE OR INJUNCTIVE
RELIEF, SHALL BE RESOLVED EXCLUSIVELY BY THE UNITED STATES BANKRUPTCY COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND HEREBY AGREE AND CONSENT TO THE EXCLUSIVE
JURISDICTION OF THAT COURT. THE PARTIES FURTHER AGREE THAT THE PREVAILING PARTY
OF ANY SUCH ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEY'S FEES
INCURRED IN PROSECUTING OR DEFENDING THAT DISPUTE.

         27. GOVERNING LAW. THE PARTIES AGREE THAT, NOTWITHSTANDING ANY
CONFLICTS OF LAWS PRINCIPLES, ANY DISPUTE CONCERNING THE SETTLEMENT DOCUMENTS
WILL BE GOVERNED BY NEW YORK LAW.

                                       19
<PAGE>

         28. Notices. Any notice, request, consent, payment, demand or other
communication required or permitted to be given under this Agreement or any
other Settlement Document shall be in writing and shall be deemed to have been
duly given on the date of service if served personally on the party or parties
to whom notice is given, or on the 10th day after mailing if mailed to the party
to whom the notice is to be given by certified mail, return receipt requested,
postage prepaid and properly addressed as follows:

                  If to the Enron Parties:

                           Enron Corp.
                           1400 Smith Street
                           Houston, Texas 77002
                           Attention: General Counsel
                           Facsimile: (713) 646-6227

                  with a copy to:

                           Weil, Gotshal & Manges LLP
                           700 Louisiana, Suite 1600
                           Houston, Texas 77002
                           Attention: Charles E. Harrell, Esq.
                           Facsimile: (713) 224-9511

                  If to the EOTT Parties:

                           EOTT Energy Corp.
                           P.O. Box 4666
                           Houston, Texas 77210-4666
                           Attention: Vice President and General Counsel
                           Facsimile: (713) 402-2806

Either party may change its address for the purposes of this Section 28 by
giving the other party hereto written notice of the new address in the manner
set forth above.

         29. No Survival of Representations. The Parties agree and stipulate
that none of the representations and warranties contained in this Agreement
shall survive the Closing Date, and no Party hereto shall have any right to
bring suit for breach of this Agreement or any other Settlement Document in the
event of a breach of a representation or warranty.

         30. Entire Agreement and Integration Clause. Except as evidenced by the
other Settlement Documents, this Agreement integrates the whole of all
agreements and understandings of any sort or character between the Parties
concerning the subject matter of this Agreement, and supercedes all prior
negotiations, discussions, or agreements of any sort whatsoever, whether oral or
written. There are no representations, agreements, or inducements, except as set
forth expressly and specifically in this Agreement and the other Settlement
Documents. THERE ARE NO UNWRITTEN OR ORAL UNDERSTANDINGS, AGREEMENTS, OR
REPRESENTATIONS OF ANY SORT WHATSOEVER CONCERNING THE SUBJECT MATTER OF THE
SETTLEMENT DOCUMENTS, IT BEING STIPULATED

                                       20
<PAGE>

THAT THE RIGHTS OF THE PARTIES HERETO AGAINST ANY OPPOSING PARTY HERETO SHALL BE
GOVERNED EXCLUSIVELY BY THIS AGREEMENT.

         31. Further Assurances. The Parties shall execute, acknowledge, deliver
or cause to be executed, acknowledged or delivered, all further documents as
shall be reasonably necessary or convenient to carry out the provisions of this
Agreement and the Settlement Documents.

         32. Amendments in Writing. This Agreement may only be amended or
modified if such amendment, modification or waiver is in writing and signed by
all Parties and authorized pursuant to an order of each of the Enron Bankruptcy
Court and the EOTT Bankruptcy Court. No waiver of any breach of this Agreement
shall be construed as an implied amendment or agreement to amend or modify any
provision of this Agreement.

         33. No Waiver. The failure by any of the Parties to enforce at any
time, or for any period of time, any one or more of the terms or conditions of
this Agreement or any other Settlement Document, or a course of dealing between
the Parties, shall not be a waiver of such terms or conditions or of such
Party's right thereafter to enforce each and every term and condition of this
Agreement and the other the Settlement Documents.

         34. Construction. Words in this Agreement of any gender or neuter shall
be construed to include any other gender or neuter where appropriate. Words used
in this Agreement that are either singular or plural shall be construed to
include the other where appropriate.

         35. Headings. Headings are for convenience only and shall not limit,
expand, affect, or alter the meaning of any text.

         36. Binding on Successors and Assigns. The exhibits and schedules to
this Agreement are expressly incorporated herein by reference. This Agreement
and each exhibit and schedule hereto shall be binding on and shall inure to the
benefit of the Parties hereto and their respective successors and assigns, and
is enforceable against them in accordance with its terms.

         37. Multiple Counterparts and Facsimile Signatures. This Agreement may
be executed in counterparts. All counterparts hereof shall collectively
constitute a single agreement. This Agreement may be executed and delivered by
facsimile copies, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                       21
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first above written.

<Table>
<S>                                             <C>
EOTT ENERGY CORP.                               ENRON CORP.

By:  /s/  Dana R. Gibbs            mms          By:   /s/ Raymond M. Bowen, Jr.
   -----------------------------------              ------------------------------
     Name:  Dana R. Gibbs                             Name: Raymond M. Bowen, Jr.
     Title:  CEO & President                          Title: Executive Vice President

EOTT ENERGY PARTNERS, L.P.                      ENRON NORTH AMERICA CORP.

By: EOTT Energy Corp., as general partner

By:  /s/  Dana R. Gibbs        mms               By:  /s/ L. Don Miller
   -----------------------------------              ------------------------------
     Name: Dana R. Gibbs                              Name:  L. Don Miller
     Title: CEO & President                           Title:  President

EOTT ENERGY OPERATING LIMITED PARTNERSHIP        ENRON PIPELINE SERVICES COMPANY

By: EOTT Energy General Partner, LLC., as
general partner

By:  /s/  Dana R. Gibbs        mms               By:  /s/ James Saunders
    -------------------------------------           -------------------------------
     Name:  Dana R. Gibbs                             Name: James Saunders
     Title:  CEO & President                          Title:  VP

EOTT ENERGY PIPELINE LIMITED PARTNERSHIP         EGP FUELS COMPANY

By: EOTT Energy General Partner, LLC., as
general partner

By:  /s/  Dana R. Gibbs        mms               By:  /s/ James Saunders
    ----------------------------------              -------------------------------
     Name:  Dana R. Gibbs                             Name: James Saunders
     Title:  CEO & President                          Title:  VP

EOTT Energy GENERAL Partner, LLC                 Enron Gas Liquids, Inc.

By:  /s/  Dana R. Gibbs        mms               By:  /s/ Ed Smida
   -----------------------------------              -------------------------------
     Name:  Dana R. Gibbs                             Name:  Ed Smida
     Title:  CEO & President                          Title:  President
</Table>

<PAGE>

<Table>
<S>                                              <C>
EOTT ENERGY CANADA LIMITED PARTNERSHIP           ENRON ENERGY SERVICES, INC.

By: EOTT Energy General Partner, LLC, as
general partner

By:  /s/  Dana R. Gibbs        mms               By:  /s/ Robert J. Semple
   -----------------------------------              ------------------------------
     Name:  Dana R. Gibbs                             Name:  Robert J. Semple
     Title:  CEO & President                          Title:  President

EOTT ENERGY LIQUIDS, L.P.

By: EOTT Energy General Partner, LLC, as
general partner

By:  /s/  Dana R. Gibbs        mms
     ---------------------------------
     Name:  Dana R. Gibbs
     Title:  CEO & President:

EOTT CANADA, LTD.

By:  /s/  Dana R. Gibbs        mms
     ---------------------------------
     Name:  Dana R. Gibbs
     Title:  CEO & President

EOTT Energy Finance Corp.

By:  /s/  Dana R. Gibbs        mms
     ---------------------------------
     Name:  Dana R. Gibbs
     Title:  CEO & President:
</Table>

<PAGE>

                                 Schedule 16(g)

                                  Subsidiaries

EOTT Energy General Partner, LLC

EOTT Energy Pipeline Limited Partnership

EOTT Energy Operating Limited Partnership

EOTT Energy Canada Limited Partnership

EOTT Energy Liquids, L.P.

EOTT Energy Finance Corp.

                                       24
<PAGE>

                                    EXHIBIT A

                      FORM OF EMPLOYEE TRANSITION AGREEMENT

                                       25
<PAGE>

                          EMPLOYEE TRANSITION AGREEMENT

                                      AMONG

                         ENRON PIPELINE SERVICES COMPANY

                                       AND

                               EOTT ENERGY CORP.,
                         AS GENERAL PARTNER ON BEHALF OF
                          EOTT ENERGY PARTNERS, L.P.,

                                       AND

       EOTT ENERGY GENERAL PARTNER, LLC, AS THE GENERAL PARTNER OF AND ON
         BEHALF OF EOTT ENERGY OPERATING LIMITED PARTNERSHIP, AND EOTT
                      ENERGY PIPELINE LIMITED PARTNERSHIP

                              Dated October 8, 2002

                                       26
<PAGE>

                          EMPLOYEE TRANSITION AGREEMENT

                  THIS EMPLOYEE TRANSITION AGREEMENT is entered into by and
between Enron Pipeline Services Company, a Delaware corporation ("ENRON"), and
EOTT Energy General Partner, LLC, a Delaware limited liability company, in its
capacity as the general partner and on behalf of EOTT Energy Operating Limited
Partnership, a Delaware limited partnership ("EOLP"), and EOTT Energy Pipeline
Limited Partnership, a Delaware limited partnership (together with EOLP the
"OPERATING PARTNERSHIPS"), and EOTT Energy Corp., a Delaware corporation
("EEC"), in its capacity as the general partner and on behalf of EOTT Energy
Partners, L.P. (the "PARTNERSHIP") (the Operating Partnerships and the
Partnership are hereinafter referred to as the "EOTT PARTIES"). The EOTT Parties
and Enron are hereinafter collectively referred to as the "Parties", and any one
of them a "Party" (together with all schedules, appendices and exhibits, if any,
attached and made a part hereof, this "AGREEMENT").

                  WHEREAS, Enron and the Operating Partnerships desire to
terminate the Operation and Service Agreement and transition certain Enron
employees to the EOTT Parties on the terms and subject to the conditions of this
Agreement;

         WHEREAS, the EOTT Parties agree to make offers of employment to those
certain Enron employees in the manner and according to the terms and provisions
stated herein;

         WHEREAS, the Parties desire to set forth their respective rights and
responsibilities with regard to the transition of Eligible Transition Employees
(as defined below) and any other matters addressed herein;

         NOW THEREFORE, the Parties agree as follows:

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

         Except as otherwise indicated by the context, all capitalized terms
used in this Agreement shall have the meanings set forth below:

"AD&D PLAN" shall have the meaning ascribed to such term in Section 4.2(f)(i).

"APPROVAL DATE" means the date on which both the Final EOTT Order shall have
been entered in the EOTT Bankruptcy Court and the Final Enron Order shall have
been entered in the Enron Bankruptcy Court.

"COBRA" shall have the meaning ascribed to such term in Section 3.2.

"DISPUTED AMOUNT" shall have the meaning ascribed to such term in the Settlement
Agreement.

"EFFECTIVE DATE" shall mean the first day of the first full payroll period after
the Approval Date and when all of the conditions precedent identified in Article
11 herein have been satisfied or waived, unless otherwise agreed between the
parties.

"ELIGIBLE TRANSITION EMPLOYEES" shall mean all individuals employed by Enron who
are currently assigned to perform work on the Facilities affected by this
Agreement and such other Enron employees as may be listed in Schedule A,
attached hereto and made a part hereof, as such Schedule A may be revised from
time to time as agreed between the parties.

"ENRON BANKRUPTCY COURT" means the United States Bankruptcy Court for the
Southern District of New York.

"ENRON INDEMNITEES" shall have the meaning ascribed to such term in Section 7.1.

"EOTT BANKRUPTCY COURT" means the United States Bankruptcy Court for the
Southern District of Texas presiding over the jointly administered chapter 11
cases of certain of the EOTT Parties.

"THE EOTT PARTIES' PLANS" shall have the meaning ascribed to such term in
Section 3.3.

"ESOP" shall have the meaning ascribed to such term in Section 4.1(c)(i).

"FACILITIES" shall have the same meaning as defined in the Operation and Service
Agreement.

"FINAL EOTT ORDER" shall have the meaning ascribed to such term in the
Settlement Agreement.

"FINAL ENRON ORDER" shall have the meaning ascribed to such term in the
Settlement Agreement.

                                       2
<PAGE>

"FINAL INVOICE" shall mean an invoice prepared by Enron in good faith estimating
all costs incurred by Enron under the Operation and Service Agreement since the
last invoice delivered by Enron through the Effective Date, including, but not
limited to, the Transition Expenses.

"GOVERNMENTAL AUTHORITY" means, with respect to any Person, any country, state,
county, city or political subdivision that exercises jurisdiction over such
Person or such Person's property or assets, and any court, agency, department,
commission, board, bureau or instrumentality of any of them.

"LAW" means, collectively, any law, statute, rule, regulation, ordinance, order,
directive, code, interpretation, judgment, decree, injunction, writ, permit,
license, authorization, or decision or agreement with or by any Governmental
Authority, and including Environmental Law.

"LTD PLAN" shall have the meaning ascribed to such term in Section 4.2(a)(i).

"NOTE" shall have the meaning ascribed to such term in the Settlement Agreement.

"OPERATOR CONTROLLED GROUP" shall have the meaning ascribed to such term in
Section 3.1.

"OPERATION AND SERVICE AGREEMENT" shall mean the Operation and Service Agreement
executed between Enron Pipeline Services Company and EOTT Energy Corp., a
Delaware corporation, solely in its capacity as the general partner of EOTT
Energy Operating Limited Partnership, a Delaware limited partnership, and EOTT
Energy Pipeline Limited Partnership, a Delaware limited partnership, and dated
and effective as of October 1, 2000, as amended.

"O&S AGREEMENT INDEMNITY" shall have the meaning ascribed to such term in the
Settlement Agreement.

"PERSON" means any individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated
organization, joint venture, firm, or other entity or a government or any
political subdivision or agency, department, or instrumentality thereof.

"SAVINGS PLAN" has the meaning ascribed to such term in Section 4.1(b).

"SETTLEMENT AGREEMENT" shall mean that SETTLEMENT AGREEMENT entered into as of
the 7th day of October, 2002 by and among EOTT Energy Partners, L.P., a Delaware
limited partnership, EOTT Energy Corp., a Delaware corporation, EOTT Energy
General Partner, LLC, a Delaware limited liability company, EOTT Energy Pipeline
Limited Partnership, a Delaware limited partnership, EOTT Energy Operating
Limited Partnership, a Delaware limited partnership, EOTT Energy Canada Limited
Partnership, a Delaware limited partnership, EOTT Energy Liquids, L.P., as
Delaware limited partnership, EOTT Energy Finance Corp., a Delaware corporation,
and EOTT Canada Ltd., an Alberta corporation on the one hand, and Enron Corp.,
an Oregon corporation and as debtor-in-possession, Enron North America Corp., a
Delaware corporation and as debtor-in-possession, Enron Energy Services, Inc., a
Delaware corporation and as debtor-in-possession Enron Pipeline Services
Company, a Delaware corporation, EGP Fuels Company, a Delaware corporation, and
Enron Gas Liquids, Inc., a Delaware corporation and as debtor-in-possession, on
the other.

                                       3
<PAGE>

"SYSTEM EMPLOYEES" shall mean those Eligible Transition Employees who become
employed by EEC pursuant to the terms and provisions of this Agreement.

"TRANSITION EXPENSES" shall have the meaning ascribed to such term in Section
2.1.

                                    ARTICLE 2
                         EMPLOYMENT OF SYSTEM EMPLOYEES

2.1      Certain Obligations with Respect to Eligible Transition Employees. The
         EOTT Parties and Enron shall be responsible for, on an equal basis,
         reasonable winddown costs, incurred by Enron as a result of the
         transition of Eligible Transition Employees. The EOTT Parties' share of
         such costs are the "TRANSITION EXPENSES". Projected winddown costs are
         set forth on Exhibit B hereto.

2.2      Employment of System Employees. The EOTT Parties shall make or cause to
         be made an offer of employment to each Eligible Transition Employee,
         and will initially employ or cause to be employed each such Eligible
         Transition Employee at not less than the current base compensation such
         System Employee was paid by Enron; provided, however, nothing in this
         Agreement shall operate or be construed to prevent the EOTT Parties
         from subsequently increasing or decreasing any such System Employee's
         base compensation in such a manner as the EOTT Parties may deem
         appropriate or from terminating any System Employee.

                                    ARTICLE 3
                               EMPLOYMENT MATTERS

3.1      System Employees. Enron has delivered the Schedule of Eligible
         Transition Employees on a confidential basis to the Vice President,
         Human Resources at EEC with the Schedule showing the name, job
         position, work location, base compensation and years of past service
         credit for all Eligible Transition Employees. Enron will provide the
         EOTT Parties, on a confidential basis, relevant written information in
         Enron's possession regarding each such individual's work
         qualifications, training history, and prior jobs held while employed by
         any affiliate of Enron or the EOTT Parties. The EOTT Parties agree to
         cause a member or members of the controlled group under IRC Section
         1563(c)(2)(A) of which Enron is a member (the "OPERATOR CONTROLLED
         Group") to make offers of employment as of the Effective Date to such
         Eligible Transition Employees with such offers of employment to be made
         within thirty (30) days of the date of execution of the Agreement.
         Additionally, the EOTT Parties shall require that all acceptances of
         employment by the System Employees be received by the EOTT Parties on
         or before fifteen (15) days prior to the anticipated Approval Date,
         unless otherwise agreed between the parties. The EOTT Parties agree
         that such offers of employment shall be made in accordance with this
         Section. The offered employment shall be at levels of compensation
         consistent with the EOTT Parties' salary policies for jobs of similar
         responsibilities, but in accordance with Section 2.2 above. If the EOTT
         Parties offer an Eligible Transition Employee employment hereunder that
         requires a relocation beyond fifty (50) miles from that Eligible
         Transition Employee's current work

                                       4
<PAGE>

         location, the EOTT Parties shall pay relocation benefits in accordance
         with Enron's relocation policy.

3.2      COBRA Continuation Coverage. Enron shall be responsible for the health
         care claims of any Eligible Transition Employees prior to the Effective
         Date, as required by the Consolidated Omnibus Reconciliation Act of
         1985 ("COBRA") under affected medical plans sponsored by Enron. The
         EOTT Parties shall be responsible for providing health care
         continuation coverage, if any, as required by COBRA to any of the
         System Employees who are employed by the EOTT Parties as of or
         subsequent to the Effective Date and who cease employment with the EOTT
         Parties for any reason thereafter.

3.3      Participation In the EOTT Parties' Plans. Subsequent to the Effective
         Date, upon employment with the EOTT Parties or one of its affiliates,
         the System Employees shall be eligible for participation in all
         employee benefit plans (within the meaning of Section 3(3) of ERISA)
         for which similarly situated employees of the EOTT Parties are eligible
         ("EOTT PARTIES' PLANS"). The EOTT Parties shall recognize all credited
         service dates accepted by Enron in all service and vesting requirements
         for System Employee participation. Under the EOTT Parties' Plans, the
         System Employees will be given credit for Past Service (defined below)
         for purposes of (i) determining eligibility for participation
         (including, without limitation, eligibility for early retirement), and
         (ii) determining the duration and amount, if any, of disability
         benefits. "PAST SERVICE" means (i) service as an employee of Enron or
         any of its affiliates and (ii) service as an employee of any other
         entity, but only to the extent that such service is recognized under
         the applicable and similar plan of the EOTT Parties, and is continuous
         through the Effective Date.

3.4      No Medical Preexisting Condition. No preexisting condition, exclusion,
         or limitation shall be applicable with respect to the participation and
         coverage of any System Employee or dependent in any of the EOTT
         Parties' Plans which is a medical benefit plan.

3.5      Responsibility for Claims. Employee benefit claims for expenses
         incurred by, or for services provided to, Eligible Transition Employees
         or their dependents which occur prior to the Effective Date shall be
         covered under the Enron sponsored plans. Employee benefit claims for
         expenses incurred by, or for services provided to, System Employees or
         their covered dependents which occur on or after the Effective Date
         shall be covered under the EOTT Parties' Plans. The amount and type of
         benefits payable in any case shall be determined in accordance with the
         terms of the applicable employee benefit plan.

3.6      Information From Enron. Enron shall furnish the EOTT Parties with
         copies of the relevant information from each Eligible Transition
         Employee's personnel files and historical compensation data, and such
         other information that is reasonably requested by the EOTT Parties for
         the purpose of carrying out the provisions of this Section 3.1, except
         as may be prohibited by law or contractual obligation, or which in the
         opinion of Enron contains subjective opinion that may expose Enron to
         potential liability.

                                       5
<PAGE>

                                    ARTICLE 4
                  SPECIFIC BENEFIT PLAN TRANSITION OBLIGATIONS

4.1      Enron's Pension Plans.

         (a)      Enron Corp. Cash Balance Plan. System Employees shall continue
                  to be eligible to participate in the Enron Corp. Cash Balance
                  Plan on or after the Effective Date for as long as EEC is a
                  participating employer in such plan.

         (b)      Enron Corp. Savings Plan.

                  System Employees shall continue to be eligible for
                  participation in the Enron Corp. Savings Plan ("SAVINGS PLAN")
                  for as long as EEC is a participating employer in such plan.
                  The account of each System Employee who is a participant in
                  the Savings Plan shall continue to be held by the Trustee of
                  the Savings Plan in accordance with the applicable terms and
                  provisions of the Savings Plan, and shall be distributed to
                  System Employee participants according to the terms and
                  provisions of the Savings Plan regarding the time and manner
                  of payment of benefits.

         (c)      Enron Corp. Employee Stock Ownership Plan.

                  (i)      System Employees who are already participants therein
                           will remain participants in the Enron Employee Stock
                           Ownership Plan ("ESOP") as long as EEC is a
                           participating employer in such plan.

                  (ii)     The account of each System Employee who is a
                           participant in the ESOP shall continue to be held by
                           the Trustee of the ESOP in accordance with the
                           applicable terms and provisions of the ESOP, and
                           shall be distributed to participants according to the
                           terms and provisions of the ESOP regarding the time
                           and manner of payment of benefits.

4.2      EOTT Parties Sponsored Employee Welfare Benefit Plans. The System
         Employees and their dependents shall participate in the EOTT Parties
         Plans which are employee welfare benefit plans maintained by the EOTT
         Parties for its employees.

         (a)      Long Term Disability Benefits.

                  (i)      Eligible Transition Employees who were on Enron's
                           sick pay policy on the Effective Date shall be
                           eligible at the end of their sick pay period to

                                       6
<PAGE>

                           apply for and receive benefits to which they are
                           entitled under the provisions of the Enron Long Term
                           Disability Plan ("LTD PLAN").

                  (ii)     Enron shall be responsible for all long term
                           disability cases existing under the LTD Plan on the
                           Effective Date, including cases and events for
                           Eligible Transition Employees which occurred on or
                           prior to the Effective Date.

                  (iii)    Eligible Transition Employees who are receiving or
                           entitled to receive long term disability benefits
                           under the LTD Plan as provided in 4.2 (a) (i) and
                           (ii) above shall continue to receive or be entitled
                           to receive benefits under such plan, in addition to
                           any other Enron benefits pertaining to long term
                           disability recipients, on or after the Effective
                           Date.

                  (iv)     System Employees shall be eligible for long term
                           disability benefits under the EOTT Parties' Plans
                           which provide such benefits.

         (b)      Sick Pay Benefits. Employees who are receiving sick pay under
                  the Enron sick policy on the Effective Date shall continue to
                  be paid by Enron under such policy until the earlier of (i)
                  the employee being released to return to active work or (ii)
                  the expiration of sick pay benefits. Upon being released to
                  return to work, such Eligible Transition Employees shall
                  receive an offer of employment from the EOTT Parties, provided
                  such return to work release date is not greater than six (6)
                  months from Effective Date. Upon returning to active
                  employment status, such employees who become System Employees
                  will terminate participation in the Enron plans and become
                  participants in the EOTT Parties' Plans.

         (c)      Medical Benefits.

                  (i)      Eligible Transition Employees who were confined to a
                           hospital or medical care facility on the Effective
                           Date shall remain covered under the Enron Medical
                           Plan until the earlier of (1) the termination of
                           benefits or (2) the employee being released to return
                           to active work. System Employees who have covered
                           dependents confined to a hospital or medical care
                           facility on the Effective Date shall remain covered
                           under the Enron Medical Plan until the earlier of (1)
                           the termination of benefits or (2) the dependents are
                           released from confinement.

                  (ii)     Expenses for covered medical treatment under the
                           Enron Medical Plan incurred by System Employees and
                           their dependents prior to the Effective Date shall be
                           covered under the Enron Medical Plan and shall be
                           filed with Enron or its claims administrator. System
                           Employees and their dependents who incur expenses
                           prior to the Effective Date may file claims under the
                           Enron Medical Plan for a period of one year following
                           the Effective Date.

                                       7
<PAGE>

                  After the Effective Date, the amount applied toward
                  deductibles and out of pocket maximums in the Enron's Medical
                  Plan from January 1, 2002 up to the Effective Date, will be
                  recognized toward satisfaction of deductibles and out of
                  pocket maximums under the EOTT Parties' Plans which provide
                  medical benefits for the calendar year 2002. For such amounts
                  to be recognized, Enron will be required to provide an
                  electronic tape feed to the appropriate ASO vendor within 15
                  days after the Effective Date with the deductibles and out of
                  pocket maximums amounts applied under the Enron plans which
                  provided medical benefits

                  (iv)     System Employees whose employment with the EOTT
                           Parties terminates after the Effective Date shall be
                           eligible to receive medical and dental benefits under
                           the EOTT Parties' Plans which provide post employment
                           and retiree medical and dental benefits according to
                           the provisions of such plans. Financial
                           responsibility for such medical and dental coverage
                           and claims, as well as coverage and claims for their
                           covered dependents, shall rest solely with the EOTT
                           Parties.

         (d)      Dental Benefits.

                  (i)      Claims for dental expenses incurred before the
                           Effective Date shall be filed and paid under the
                           Enron Dental Plan. Claims for dental expenses
                           incurred on or after the Effective Date shall be
                           filed under the EOTT Parties' Plans which provide
                           dental benefits.

                  (ii)     Amounts applied to the orthodontia lifetime maximum
                           under the Dental Plan shall also apply to the
                           orthodontia lifetime maximum under the EOTT Parties
                           Plans for eligible treatment in progress on the
                           Effective Date. Orthodontia treatment in progress
                           under the Enron Dental Plan for covered System
                           Employees and their dependents age 19 and younger,
                           shall terminate on the Effective Date. For such
                           amounts to be recognized, Enron will be required to
                           provide an electronic tape feed to the appropriate
                           ASO vendor within 15 days after the Effective Date
                           with the amounts paid under the Enron dental plan for
                           orthodontia treatment up to the Effective Date.

                  (iii)    After the Effective Date, the amount applied toward
                           deductibles and out of pocket maximums in the Enron
                           Dental Plan from January 1, 2002 up to the Effective
                           Date will be recognized toward satisfaction of
                           deductibles and out of pocket maximums in the EOTT
                           Parties' Plans. For such amounts to be recognized,
                           Enron will be required to provide an electronic tape
                           feed to the appropriate ASO vendor within 15 days
                           after the Effective Date with the deductibles and out
                           of pocket maximums amounts applied under the Enron
                           plans which provided dental benefits.

         (e)      Life Insurance Benefits.

                                       8
<PAGE>

                  (i)      System Employees who enroll for life insurance
                           coverage under the EOTT Plans shall not be considered
                           late entrants and will not be required to provide
                           certification of health status for issue levels up to
                           $300,000.

                  (ii)     Enron will be responsible for the life insurance
                           benefits for any Eligible Transition Employee who
                           remains covered by an Enron sick pay plan as provided
                           in Section 4.2(b).

         (f)      Accidental Death and Dismemberment Benefits.

                  (i)      The Enron Accidental Death & Dismemberment Plan (the
                           "AD&D PLAN") shall be responsible for the payment of
                           all claims for or relating to accidental injuries and
                           deaths occurring before the Effective Date, provided
                           such claims are filed within one year of the
                           Effective Date.

                  (ii)     Eligible Transition Employees who are covered under
                           the Enron sick pay plan as provided in Section 4.2(b)
                           on the Effective Date shall remain covered under the
                           AD&D Plan until the earlier of (1) the termination of
                           such coverage or (2) return to active work.

         (g)      Section 125 Spending Accounts. System Employees shall be able
                  to submit medical or dependent care expenses to Enron for any
                  expenses incurred prior to the Effective Date for
                  reimbursement under the provisions of the Enron Section 125
                  Spending Account Plans, except any System Employee who enrolls
                  under COBRA Provisions shall be eligible to participate in the
                  COBRA Spending Accounts. No Spending Account balances will be
                  transferred to the EOTT Parties by Enron as part of the
                  transition obligations.

         (h)      Education Reimbursement. Enron's obligation for education
                  reimbursement to System Employees is limited to those System
                  Employees who have already received approval for and completed
                  by the Effective Date a course approved under the Enron
                  Education Reimbursement Plan. The EOTT Parties have currently
                  suspended any educational reimbursement plans.

         (i)      Vacation. System Employees with a 2002 unused vacation balance
                  with Enron as of the Effective Date will transfer their
                  vacation balance to the EOTT Parties. Beginning January 1,
                  2003, a System Employee's vacation will be earned and accrued
                  at the end of each month and be paid at the base rate of pay
                  at the time the vacation is used. The Enron continuous service
                  date of a System Employee will be recognized for the EOTT
                  Parties vacation accrual. For System Employees whose vacation
                  accrual rate is established at three weeks with a vacation
                  eligibility date on or after January 1, 2000, the EOTT Parties
                  will continue to recognize this same vacation accrual.

                                       9
<PAGE>

         (j)      Holiday. System Employees will continue on the Enron holiday
                  schedule for the remainder of 2002 with an exception to the
                  Christmas Observance Holiday on December 24, 2002. The EOTT
                  Parties will recognize the Enron Christmas Observance Holiday
                  as one (1) EOTT Parties' Discretionary Holiday. The EOTT
                  Parties will recognize one (1) Enron Discretionary Holiday if
                  the System Employee has not used this discretionary holiday as
                  of the Effective Date. Beginning January 1, 2003, all System
                  Employees will follow the EOTT Parties' holiday schedule.

4.3      Enron Stock Option Plan. Options currently granted to System Employees
         under any Enron Corp. stock plan or program shall continue under normal
         vesting requirements, as set out in such plan or program, as long as
         the System Employees are employed by Enron or the EOTT Parties.

4.4      Workers Compensation Claims. Enron shall be responsible for any Workers
         Compensation claims filed by any System Employees prior to the
         Effective Date. The EOTT Parties shall be responsible for all Workers
         Compensation claims filed by System Employees after the Effective Date.

                                    ARTICLE 5
                               RECORDS AND AUDITS

         Records Maintenance and Audits. Enron shall, for a period required by
law after the termination of this Agreement, maintain records and other evidence
sufficient to accurately and properly reflect charges and distributions related
to the Employee Benefits matters hereunder. Enron agrees to send the original
records on the System Employees to the EOTT Parties, and retain copies, as set
out in Section 3.6 above. The EOTT Parties or their representatives shall have
access at all reasonable times and with reasonable notice to review such records
to administer the plans. Any audits performed by or on behalf of the EOTT
Parties shall be at the EOTT Parties' sole cost and expense.

                                    ARTICLE 6
                                 CONFIDENTIALITY

                           Each party acknowledges that in connection with its
performance under this Agreement, it may gain access to confidential material
and information which is proprietary to the other party. Unless otherwise
required by law, each party agrees:

         (a)      to hold such material and information in strict confidence and
                  not make use thereof other than for performance under or
                  enforcement of this Agreement;

         (b)      to reveal such material and information only to those
                  employees requiring such information in connection with the
                  performance of the employee benefits matters only after such
                  employees agree to be bound by the provisions of this
                  confidentiality provision; and

                                       10
<PAGE>

(c)               not to reveal such material and information to any third
                  person, except as necessary in connection with this Agreement,
                  or as may be required by law or court proceeding, and then
                  only to the extent that such persons agree to be bound by the
                  confidentiality obligations set forth herein.

         This confidentiality provision shall survive for a period of three
years following the expiration or termination of this Agreement.

                                    ARTICLE 7
                                 INDEMNIFICATION

                           7.1 Indemnification by the EOTT Parties. The EOTT
         Parties agree to protect, defend, indemnify and hold harmless Enron and
         its employees, officers, directors, agents and representatives, at the
         EOTT Parties' cost and expense, from and against any and all claims,
         demands or causes of action, and will reimburse Enron for any and all
         costs, liabilities, judgments, and expenses (including attorneys' fees)
         reasonably incurred by Enron in connection with the investigation,
         preparing for and defending against any such claim, demand or cause of
         action, whether or not resulting in any liability, and any amount paid
         in settlement of any litigation, commenced or threatened, or of any
         such claim, demand or cause of action if such settlement is effected
         with the written consent of the EOTT Parties, under, arising out of, or
         attributable to any the EOTT Parties' employee benefit plan, program
         operative or any act or omission by the EOTT Parties or their employees
         or agents with respect to an Enron Plan.

                           7.2 Indemnification Procedures. Promptly after
         receipt by a party indemnified (the "INDEMNIFIED PARTY") under this
         Article 7 of notice of the commencement of any action or the written
         assertion of any claim or demand, the Indemnified Party shall, if a
         claim in respect thereof is to be made against an indemnifying party
         (the "INDEMNIFYING PARTY") under this Article 7, notify the
         Indemnifying Party in writing of the commencement or the written
         assertion thereof; but the omission so to notify the Indemnifying Party
         shall not relieve it from any liability which it may otherwise have to
         the Indemnified Party. In case any such action, claim or demand shall
         be brought or asserted against any Indemnified Party, it shall notify
         the Indemnifying Party, who shall be entitled to participate therein
         or, upon request by the Indemnifying Party, the Indemnified Party may
         assume the defense thereof with counsel reasonably satisfactory to the
         Indemnifying Party. In the alternative, the Indemnifying Party may
         assume the defense thereof with counsel reasonably satisfactory to the
         Indemnified Party. Upon assumption by the Indemnifying Party of the
         defense of such action, claim or demand, the Indemnified Party shall
         have the right to participate in such action, claim or demand and to
         retain its own counsel, but the Indemnifying Party shall not be liable
         to the Indemnified Party under Article 7 for any legal expenses of
         other counsel or any other expenses, in each case subsequently incurred
         by the Indemnified Party, in connection with the defense thereof other
         than reasonable costs of investigation and preparation, unless the
         Indemnifying Party and the Indemnified Party are named parties to any
         such action, claim or demand (including any impleaded parties) and

                                       11
<PAGE>

         representation of both parties by the same counsel would be
         inappropriate due to actual or potential differing interests between
         them.

                           7.3 Survival. The agreements contained in this
         Article 7 shall remain operative and in full force and effect,
         regardless of any termination or cancellation of this Agreement or any
         investigation made by or on behalf of Enron, the EOTT Parties, or any
         of their respective officers or directors or any controlling person,
         and shall survive the termination of this Agreement.

                           7.4 Other Beneficiaries. The reimbursement and
         indemnity obligations of the EOTT Parties under this Article 7 shall be
         in addition to any liability which the EOTT Parties may otherwise have
         and shall be binding upon and inure to the benefit of any successors,
         assigns, heirs and personal representatives of the EOTT Parties and
         their employees, officers, directors, agents and representatives.

                                    ARTICLE 8
                                TERM OF AGREEMENT

         This Agreement shall be effective as of the Effective Date and shall
continue in force and effect for one year after the Effective Date.

                                    ARTICLE 9
                                  MISCELLANEOUS

9.1      Assignability.

                                    (a) Enron shall not assign, in whole or in
                  part, any of the rights, obligations or benefits arising under
                  this Agreement without the prior written consent of the EOTT
                  Parties, which consent may not be unreasonably withheld,
                  except by operation of law, and except that Enron may assign
                  its rights, obligations and benefits hereunder to any entity
                  controlled by, under common control with, or which controls
                  such party, provided Enron shall continue to remain jointly
                  and severally liable for all of its assignee's obligations
                  hereunder.

                                    (b) The EOTT Parties may assign, in whole or
                  in part, any of the rights, obligations or benefits arising
                  under this Agreement to a subsidiary, affiliate or related
                  third party, without the prior written consent of Enron, but
                  with written notice to Enron of such assignment, provided the
                  EOTT Parties shall continue to remain jointly and severally
                  liable for all of its assignee's obligations hereunder.

                           9.2 Injunctions. The parties acknowledge that
         irreparable damage would occur in the event that any of the provisions
         of this Agreement were not performed in accordance with their specific
         terms or were otherwise breached. The parties hereto shall be entitled
         to an injunction or injunctions to prevent breaches of the provisions
         of this Agreement and to enforce specifically the terms and provisions
         hereof in any court

                                       12
<PAGE>

         having jurisdiction, such remedy being in addition to any other remedy
         to which they may be entitled at law or in equity.

                           9.3 Governing Law. THIS AGREEMENT AND THE RIGHTS AND
         OBLIGATIONS OF THE PARTIES ARISING OUT OF THIS AGREEMENT SHALL BE
         GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
         TEXAS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

                           9.4 Notices. Any notice, request, consent, payment,
         demand or other communication required or permitted to be given under
         this Agreement shall be in writing and shall be deemed to have been
         duly given on the date of service if served personally on the party or
         parties to whom notice is given, or on the 10th day after mailing if
         mailed to the party to whom the notice is to be given by certified
         mail, return receipt requested, postage prepaid and properly addressed
         as follows:

                               If to Enron:

                                        Enron Pipeline Services Company.
                                        P.O. Box 1188
                                        Houston, Texas 77251-1188
                                        Attn: General Counsel
                                              Legal Department

                               If to EOTT Parties:

                                        EOTT Energy Corp.
                                        P.O. Box 4666
                                        Houston, Texas 77210-4666
                                        Attn: General Counsel
                                              Legal Department

         Either party may change its address for the purpose of this Section 9.4
         by giving the other party hereto written notice of the new address in
         the manner set forth above.

                           9.5 Further Assurances. Subject to the provisions
         hereof, the parties hereto shall make, execute, acknowledge and deliver
         such other instruments and documents, and take all such other actions,
         as may be reasonable required in order to effectuate the purposes of
         this Agreement and to consummate the transactions contemplated hereby.
         Subject to the provisions hereof, each of the parties shall, in
         connection with entering into this Agreement, performing its
         obligations hereunder and taking any and all actions relating hereto,
         comply with all applicable laws, regulations, orders and decrees,
         obtain all required consents and approvals and make all required filing
         with any governmental agency, other regulatory or administrative
         agency, commission or similar authority and promptly provide the other
         parties with all such information as they may reasonably request in
         order to be able to comply with the provisions of this section.

                                       13
<PAGE>

                           9.6 Change of Law. If, due to any change in
         applicable law or regulations or the interpretation thereof by any
         court of law or other governing body having jurisdiction subsequent to
         the date of this Agreement, performance of any provision of this
         Agreement or any transaction contemplated thereby shall become
         impracticable or impossible, the parties hereto shall use their best
         efforts to find and employ an alternative means to achieve the same or
         substantially the same result as that contemplated by such provision.

                           9.7 Headings. Descriptive headings are for
         convenience only and shall not control or affect the meaning or
         construction of any provision of this Agreement.

                           9.8 Severability. In the event any portion of this
         Agreement shall be found by a court of competent jurisdiction to be
         unenforceable, that portion of this Agreement will be null and void and
         the remainder of this Agreement will be binding on the parties as if
         the unenforceable provisions had never been contained herein.

                           9.9 No Third Party Beneficiaries. Nothing in this
         Agreement shall provide any benefit to any third party or entitle any
         third party to any claim, cause of action, remedy or right of any kind,
         it being the intent of the parties that this Agreement shall not be
         construed as a third party beneficiary contract; provided, however,
         that the indemnification provisions in Article 7 shall inure to the
         benefit of the Enron Indemnitees as provided in Article 7.

                           9.10 Waiver. No waiver by either party of any term or
         breach of this Agreement shall be construed as a waiver of any other
         term of breach hereof or of the same or a similar or breach on any
         other occasion.

                           9.11 Amendment. No modification or amendment of this
         Agreement shall be binding upon either party unless in writing and
         signed by the parties hereto.

                           9.12 Entire Agreement. This Agreement, together with
         all Schedules attached hereto, constitutes the entire agreement between
         the parties pertaining to the subject matter hereof, and supersedes all
         prior agreements, understandings, negotiations and discussions, whether
         oral or written, of the parties hereto regarding the subject matter
         hereof.

9.13     Disputes. The Parties hereby agree that any dispute arising under this
         Agreement shall be submitted to the Enron Bankruptcy Court for
         resolution

9.14     Counterparts. This Agreement may be executed and delivered in multiple
         counterparts, each of which for all purposes shall be deemed an
         original, and all counterparts shall together constitute but one and
         the same instrument.

                                   ARTICLE 10
                                  FINAL INVOICE

                                       14
<PAGE>

         Within sixty (60) days after the Effective Date, Enron shall submit a
statement to the EOTT Parties reconciling the Final Invoice with the actual
costs incurred by Enron under the Operation and Services Agreement for the
period covered by the Final Invoice, including the Transition Costs ("ACTUAL
COSTS"). The amount by which the Actual Costs exceed the Final Invoice shall be
paid upon demand to Enron less any Disputed Amount. The amount by which the
Final Invoice exceeds the Actual Costs, less any Disputed Amount, shall be
applied against the principal outstanding under the Note. The Parties shall
resolve any Disputed Amount as set forth in Section 20, Disputed Payments, of
the Settlement Agreement.

                                   ARTICLE 11
                              CONDITIONS PRECEDENT

         The obligation of Enron to consummate the transactions contemplated by
this Agreement is subject, in the discretion of Enron, to the satisfaction of
each of the following conditions (any of which, in Enron's absolute and sole
discretion, may be waived in whole or in part):

         (a)      The entry of a Final EOTT Order;

         (b)      The entry of a Final Enron Order;

         (c)      No breach of any term or condition of the Settlement Agreement
                  shall have occurred; and

         (d) The EOTT Parties shall have paid, and Enron shall have received,
payment in full for all invoices, less any Disputed Amount, Enron has submitted
under the Operation and Service Agreement for the period August 1, 2002 through
the Effective Date, including, but not limited to, the Final Invoice.

                                   ARTICLE 12
                         OPERATION AND SERVICE AGREEMENT

         The parties hereby agree that, upon the Effective Date of this
Agreement, the Operation and Service Agreement shall be terminated, and be of no
further force and effect except for the rights with respect to the O&S Agreement
Indemnity.

                                       15
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the 8th day of October, 2002, but EFFECTIVE FOR ALL PURPOSES as
of the Effective Date.

                                      ENRON PIPELINE SERVICES COMPANY

                                      By:
                                         ---------------------------------------

                                      Name:
                                           -------------------------------------

                                      Title:
                                            ------------------------------------

                                      EOTT ENERGY GENERAL PARTNER, LLC, SOLEY IN
                                      ITS CAPACITY AS THE GENERAL PARTNER OF AND
                                      ON BEHALF OF EOTT ENERGY OPERATING LIMITED
                                      PARTNERSHIP, AND EOTT ENERGY PIPELINE
                                      LIMITED PARTNERSHIP

                                      By:
                                         ---------------------------------------

                                      Name:
                                           -------------------------------------

                                      Title:
                                            ------------------------------------

                                      EOTT ENERGY CORP., SOLELY IN ITS CAPACITY
                                      AS THE GENERAL PARTNER OF AND ON BEHALF OF
                                      EOTT ENERGY PARTNERS, L.P.

                                      By:
                                         ---------------------------------------

                                      Name:
                                           -------------------------------------

                                      Title:
                                            ------------------------------------

                                       16
<PAGE>

                                   SCHEDULE A

                          ELIGIBLE TRANSITION EMPLOYEES
         AS OF SEPTEMBER 30, 2002, AMENDED AS AGREED BETWEEN THE PARTIES

<PAGE>

                                   SCHEDULE B

                            PROJECTED WINDDOWN COSTS

Costs to box, inventory and deliver operational documentation, records and
drawings. Engineering records will enter compliance information into an Access
database. An estimated 130 boxes of engineering records will be shipped to EOTT
Energy Corp's Houston offices. Electronic data will be transferred to a hard
drive and forwarded along with the boxes. Additional records include Pipeline
Integrity, Right-of-Way, Safety, Environmental and Training. Total estimated
winddown costs less than $20,000.

<PAGE>
                                    EXHIBIT B

                                     FORM OF

                                 WRITTEN CONSENT

                                       OF

                              THE SOLE STOCKHOLDER

                                       OF

                                EOTT ENERGY CORP.

                        __________________________ , 2002

                  The undersigned, Enron Corp. (the "Stockholder"), being the
holder of record of all of the issued and outstanding shares of the common
stock, par value $1.00 per share ("Common Stock"), of EOTT Energy Corp., a
Delaware corporation (the "Company"), pursuant to Section 228(a) of the Delaware
General Corporation Law, does hereby consent to and approve the following
resolution:

                  WHEREAS, pursuant to Article VIII of the Restated Certificate
of the Company, without the prior affirmative vote or written consent the
Stockholder, the Board of Directors of the Company and the Company shall not,
inter alia, file a voluntary petition in bankruptcy for or on behalf of the
Company or EOTT Energy Partners, L.P. (the "Partnership") other than in the
United States Bankruptcy Court in which the jointly administered cases, In re
Enron Corp., et al., Case No. 01-16034 are pending;

                  WHEREAS, the Board of Directors of the Company has notified
the Stockholder of its intention to file a voluntary petition in bankruptcy on
behalf of the Company, the Partnership and certain subsidiaries of the
Partnership; and

                  WHEREAS, the Board of Directors of the Company desires to file
such voluntary petition in bankruptcy in the United States Bankruptcy Court for
the Southern District of Texas;

                  NOW, THEREFORE, BE IT RESOLVED, that the Stockholder hereby
consents to the filing of a voluntary petition in bankruptcy on behalf of the
Company and the Partnership in the United States Bankruptcy Court for the
Southern District of Texas provided that such filing shall occur on or prior to
date 30 days after the date hereof.

                  IN WITNESS WHEREOF, the undersigned sole stockholder of the
Company, being the holder of record of all of the issued and outstanding shares
of Common Stock, has executed this Written Consent to be effective as of the
date first above written.

                                                   ENRON CORP.

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

<PAGE>

                                    EXHIBIT C

                                     FORM OF
                                    GUARANTY

                  This GUARANTY (this "GUARANTY"), dated as of October __, 2002,
by and among the Guarantors identified as such on the signature page hereof
(each, a "GUARANTOR" and collectively, the "GUARANTORS"), and Enron Corp.,
Oregon corporation, as holder of the Note (as defined below) (the "NOTEHOLDER").

                                   WITNESSETH:

                  WHEREAS, pursuant to that certain secured promissory note,
dated as of the date hereof in the aggregate the initial principal amount of
$6,211,673.13 (the "NOTE"), by EOTT Energy Partners, L.P., a Delaware limited
partnership (the "BORROWER"), in favor of the Noteholder (as from time to time
amended, restated, supplemented or otherwise modified, the "NOTE"), the Borrower
has agreed to pay amounts with respect to principal, accrued and unpaid interest
thereon and other expenses to the Noteholder, subject to the terms and
conditions set forth in such Note;

                  WHEREAS, the Borrower and certain of its affiliates and
subsidiaries (collectively, the "EOTT PARTIES") and the Noteholder and certain
of its affiliates and subsidiaries (collectively, the "ENRON PARTIES") are party
to that certain Settlement Agreement, dated as of the date hereof (the
"SETTLEMENT AGREEMENT");

                  WHEREAS, the Guarantors are wholly-owned direct and indirect
subsidiaries of the Borrower and as such will derive direct and indirect
economic benefits from the execution of the Note and other financial
accommodations provided to the Borrower pursuant to the Settlement Agreement;
and

                  WHEREAS, in order to induce the Noteholder to enter into the
Settlement Agreement and other related agreements, each Guarantor has jointly
and severally unconditionally agreed to guarantee payment of all amounts due
under the Note (the "OBLIGATIONS");

                  NOW, THEREFORE, in consideration of the premises and the
covenants hereinafter contained, and to induce the Enron Parties to provide the
financial accommodations under the Note and the Settlement Agreement, it is
agreed as follows:

DEFINITIONS.

                  Capitalized terms used herein shall have the meanings assigned
to them in the Settlement Agreement, unless otherwise defined herein.

                  References to this "GUARANTY" shall mean this Guaranty,
including all amendments, modifications and supplements and any annexes,
exhibits and schedules to

<PAGE>

any of the foregoing, and shall refer to this Guaranty as the same may be in
effect at the time such reference becomes operative.

THE GUARANTY.

                  Guaranty of Guaranteed Obligations of Borrower. Each Guarantor
hereby jointly and severally unconditionally guarantees to the Noteholder, and
its respective successors, endorsees, transferees and assigns, the prompt
payment (whether at stated maturity, by acceleration or otherwise) and
performance of the Obligations of Borrower (hereinafter the "GUARANTEED
OBLIGATIONS"). Each Guarantor hereby jointly and severally unconditionally
agrees that this Guaranty is a guaranty of payment and performance and not of
collection, and that its obligations under this Guaranty shall be primary,
absolute and unconditional, irrespective of, and unaffected by:

                  the genuineness, validity, regularity, enforceability or any
         future amendment of, or change in this Guaranty, any Settlement
         Document or any other agreement, document or instrument to which the
         Borrower, the Noteholder and/or the Guarantors are or may become a
         party;

                  the absence of any action to enforce this Guaranty or any
         Settlement Document or the waiver or consent by the Noteholder with
         respect to any of the provisions thereof;

                  the existence, value or condition of, or failure to perfect
         its Lien against, any Collateral for the Guaranteed Obligations or any
         action, or the absence of any action by the Noteholder in respect
         thereof (including, without limitation, the release of any such
         security); or

                  the insolvency of person party to any Settlement Document, the
         Note or this Guaranty; or

                  any other action or circumstances which might otherwise
         constitute a legal or equitable discharge or defense of a surety or
         guarantor,

it being unconditionally agreed by each Guarantor that its obligations under
this Guaranty shall not be discharged until the date that all Obligations have
been paid in full and satisfied (the "TERMINATION DATE"). Each Guarantor shall
be regarded, and shall be in the same position, as principal debtor with respect
to the Guaranteed Obligations. Each Guarantor jointly and severally
unconditionally agrees that any notice or directive given at any time to the
Noteholder which is inconsistent with the waivers set forth in the previous
sentences shall be null and void and may be ignored by the Noteholder, and, in
addition, may not be pleaded or introduced as evidence in any litigation
relating to this Guaranty for the reason that such pleading or introduction
would be at variance with the written terms of this Guaranty, unless the
Noteholder has specifically agreed otherwise in writing. It is unconditionally
agreed among each Guarantor and the Noteholder that the foregoing waivers are of
the essence of the transaction contemplated by the Settlement

                                       2
<PAGE>

Agreement and the Note and that, but for this Guaranty and such waivers, the
Noteholder and its affiliates and subsidiaries would decline to enter into the
Settlement Agreement.

                  Demand by Noteholder. In addition to the terms of the Guaranty
set forth in Section 2.1 hereof, and in no manner imposing any limitation on
such terms, it is expressly understood and agreed that, if, at any time, the
outstanding principal amount of the Guaranteed Obligations under the Note
(including all accrued interest thereon) is declared to be immediately due and
payable, then the Guarantors shall, without demand, pay to the holders of the
Guaranteed Obligations the entire outstanding Guaranteed Obligations due and
owing to such holders. Payment by the Guarantors shall be made to the
Noteholder, or its designated assign, in immediately available funds to an
account designated by the Noteholder or its designated assign, or at the address
set forth herein for the giving of notice to the Noteholder or at any other
address that may be specified in writing from time to time by the Noteholder,
and shall be credited and applied to the Guaranteed Obligations.

                  Enforcement of Guaranty. In no event shall the Noteholder have
any obligation (although it is entitled, at its option) to proceed against the
Borrower or any of its affiliate or any Collateral pledged to secure Guaranteed
Obligations before seeking satisfaction from any or all of the Guarantors, and
the Noteholder may proceed, prior or subsequent to, or simultaneously with, the
enforcement of the Noteholder's rights hereunder, to exercise any right or
remedy which it may have against any Collateral, as a result of any Lien it may
have as security for all or any portion of the Guaranteed Obligations.

                  Waiver. In addition to the waivers contained in Section 2.1
hereof, each Guarantor waives and jointly and severally unconditionally agrees
that they shall not at any time insist upon, plead or in any manner whatever
claim or take the benefit or advantage of, any appraisal, valuation, stay,
extension, marshaling of assets or redemption laws, or exemption, whether now or
at any time hereafter in force, which may delay, prevent or otherwise affect the
performance by the Guarantors of their Guaranteed Obligations under, or the
enforcement by the Noteholder of, this Guaranty. Guarantors hereby waive
diligence, presentment and demand (whether for non-payment or protest or of
acceptance, maturity, extension of time, change in nature or form of the
Guaranteed Obligations, acceptance of further security, release of further
security, composition or agreement arrived at as to the amount of, or the terms
of, the Guaranteed Obligations, notice of adverse change in any of the EOTT
Parties' financial condition or any other fact which might increase the risk to
the Guarantors) with respect to any of the Guaranteed Obligations or all other
demands whatsoever and waive the benefit of all provisions of law which are or
might be in conflict with the terms of this Guaranty. Each Guarantor hereby
jointly and severally represent, warrant and unconditionally agrees that, as of
the date of this Guaranty, their obligations under this Guaranty are not subject
to any offsets or defenses against the any of the Enron Parties of any kind.
Each Guarantor further jointly and severally unconditionally agrees that their
obligations under this Guaranty shall not be subject to any counterclaims,
offsets or defenses against any of the Enron Parties of any kind which may arise
in the future.

                                       3
<PAGE>

                  Benefit of Guaranty. The provisions of this Guaranty are for
the benefit of the Noteholder and its respective successors, transferees,
endorsees and assigns, and nothing herein contained shall impair, as between the
Borrower and its affiliates and subsidiaries and the Noteholder and its
affiliates and subsidiaries, the obligations of the Settlement Parties under the
Settlement Agreement and the Note. In the event all or any part of the
Guaranteed Obligations are transferred, indorsed or assigned by the Noteholder
to any person or persons, any reference to "NOTEHOLDER" herein shall be deemed
to refer equally to such person or persons.

                  Modification of Guaranteed Obligations, Etc. Each Guarantor
hereby acknowledges and jointly and severally unconditionally agrees that the
Noteholder may at any time or from time to time, with or without the consent of,
or notice to, the Guarantors or any of them:

                  change or extend the manner, place or terms of payment of, or
         renew or alter all or any portion of, the Guaranteed Obligations;

                  take any action under or in respect of the Settlement Document
         or the Note in the exercise of any remedy, power or privilege contained
         therein or available to it at law, equity or otherwise, or waive or
         refrain from exercising any such remedies, powers or privileges;

                  amend or modify, in any manner whatsoever, any Settlement
         Document or the Note;

                  extend or waive the time for any of the EOTT Parties'
         performance of, or compliance with, any term, covenant or agreement on
         its part to be performed or observed under any Settlement Document or
         the Note, or waive such performance or compliance or consent to a
         failure of, or departure from, such performance or compliance;

                  take and hold Collateral for the payment of the Guaranteed
         Obligations guaranteed hereby or sell, exchange, release, dispose of,
         or otherwise deal with, any property pledged, mortgaged or conveyed, or
         in which the Noteholder has been granted a Lien, to secure any
         Obligations;

                  release anyone who may be liable in any manner for the payment
         of any amounts owed by Guarantors or any of the EOTT Parties to the
         Noteholder;

                  modify or terminate the terms of any intercreditor or
         subordination agreement pursuant to which claims of other creditors of
         any Guarantor or any of the EOTT Parties are subordinated to the claims
         of the Noteholder; and/or

                  apply any sums by whomever paid or however realized to any
         amounts owing by any Guarantor or any of the EOTT Parties to the
         Noteholder in such manner as the Noteholder shall determine in its
         discretion;

                                       4
<PAGE>

and the Noteholder shall not incur any liability to Guarantors as a result
thereof, and no such action shall impair or release the Guaranteed Obligations
of the Guarantors or any of them under this Guaranty.

                  Reinstatement. This Guaranty shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any of the EOTT Parties or any Guarantor for liquidation or reorganization,
should any of the EOTT Parties or any Guarantor become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any significant part of such EOTT Party's or such
Guarantor's assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Guaranteed
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or
reduced in amount, or must otherwise be restored or returned by the Noteholder,
whether as a "voidable preference", "fraudulent conveyance", or otherwise, all
as though such payment or performance had not been made. In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Guaranteed Obligations shall be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

                  Deferral of Subrogation, Etc. Notwithstanding anything to the
contrary in this Guaranty, or in any Settlement Document or the Note, each
Guarantor hereby:

                  expressly and irrevocably waives, on behalf of itself and its
         successors and assigns (including any surety) until the Termination
         Date, any and all rights at law or in equity to subrogation, to
         reimbursement, to exoneration, to contribution, to indemnification, to
         set off or to any other rights that could accrue to a surety against a
         principal, to a guarantor against a principal, to a guarantor against a
         maker or obligor, to an accommodation party against the party
         accommodated, to a holder or transferee against a maker, or to the
         holder of any claim against any person, and which such Guarantor may
         have or hereafter acquire against any EOTT Party in connection with or
         as a result of such Guarantor's execution, delivery and/or performance
         of this Guaranty, or any other documents to which such Guarantor is a
         party or otherwise; and

                                       5
<PAGE>

                  acknowledges and agrees (i) that this waiver is intended to
         benefit the Noteholder and shall not limit or otherwise effect any
         Guarantor's liability hereunder or the enforceability of this Guaranty,
         and (ii) that the Noteholder and its respective successors and assigns
         are intended third party beneficiaries of the waivers and agreements
         set forth in this Section 2.8 and their rights under this Section 2.8
         shall survive payment in full of the Guaranteed Obligations.

                  Election of Remedies. If the Noteholder may, under applicable
law, proceed to realize benefits under any Settlement Document or the Note
giving the Noteholder a Lien upon any Collateral owned by any EOTT Party, either
by judicial foreclosure or by non-judicial sale or enforcement, the Noteholder
may, at its sole option, determine which of such remedies or rights it may
pursue without affecting any of such rights and remedies under this Guaranty.
If, in the exercise of any of its rights and remedies, the Noteholder shall
forfeit any of its rights or remedies, including its right to enter a deficiency
judgment against any EOTT Party, whether because of any applicable laws
pertaining to "election of remedies" or the like, Guarantors hereby consent to
such action by the Noteholder and waive any claim based upon such action, even
if such action by the Noteholder shall result in a full or partial loss of any
rights of subrogation which Guarantors might otherwise have had but for such
action by the Noteholder. Any election of remedies which results in the denial
or impairment of the right of the Noteholder to seek a deficiency judgment
against any EOTT Party shall not impair each Guarantor's obligation to pay the
full amount of the Guaranteed Obligations. In the event the Noteholder shall bid
at any foreclosure or trustee's sale or at any private sale permitted by law,
the Settlement Documents or the Note, the Noteholder may bid all or less than
the amount of the Guaranteed Obligations and the amount of such bid need not be
paid by the Noteholder but shall be credited against the Guaranteed Obligations.
The amount of the successful bid at any such sale shall be conclusively deemed
to be the fair market value of the collateral and the difference between such
bid amount and the remaining balance of the Guaranteed Obligations shall be
conclusively deemed to be the amount of the Guaranteed Obligations guaranteed
under this Guaranty, notwithstanding that any present or future law or court
decision or ruling may have the effect of reducing the amount of any deficiency
claim to which the Noteholder might otherwise be entitled but for such bidding
at any such sale.

DELIVERIES.

                  In a form satisfactory to the Noteholder, the Guarantors shall
deliver to the Noteholder, concurrently with the execution of this Guaranty and
the Settlement Agreement, the Note and other instruments, certificates and
documents as are required to be delivered by Guarantors to Noteholder under the
Settlement Agreement.

                                       6
<PAGE>

REPRESENTATIONS AND WARRANTIES.

                  Each Guarantor jointly and severally make the representations
and warranties as to each Guarantor contained in the Settlement Agreement, each
of which is incorporated herein by reference, and the representation and
warranty to the Noteholder (which representation and warranty shall survive the
execution and delivery of this Guaranty) that the execution, delivery and
performance of this Guaranty, the Settlement Agreement and the Note and all
instruments and documents to be delivered by each Guarantor hereunder and under
the Settlement Agreement are within such Guarantor's corporate power, have been
duly authorized by all necessary or proper corporate action, including the
consent of stockholders, members and/or partners where required, are not in
contravention of any provision of such Guarantor's charter or by-laws, do not
violate any law or regulation, or any order or decree of any Governmental
Authority, do not conflict with or result in the breach of, or constitute a
default under, or accelerate or permit the acceleration of any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which any Guarantor is a party or by which any Guarantor or any of
its property is bound, do not result in the creation or imposition of any Lien
upon any of the property of any Guarantor, other than those in favor of the
Noteholder, and the same do not require the consent or approval of any
Governmental Authority, all of which have been duly obtained, made or complied
with prior to the date hereof. On or prior to the date hereof, this Guaranty,
and any Settlement Document to which any Guarantor is a party shall have been
duly executed and delivered for the benefit of or on behalf of such Guarantor,
and each shall then constitute a legal, valid and binding obligation of such
Guarantor, enforceable against such Guarantor in accordance with its terms.

FURTHER ASSURANCES.

                  Each Guarantor jointly and severally unconditionally agrees,
upon the written request of the Noteholder, to execute and deliver to the
Noteholder, from time to time, any additional instruments or documents
reasonably considered necessary by the Noteholder to cause this Guaranty to be,
become or remain valid and effective in accordance with its terms.

PAYMENTS FREE AND CLEAR OF TAXES.

                  All payments required to be made by each Guarantor hereunder
shall be made to the Noteholder free and clear of, and without deduction for,
any and all present and future Taxes. If any Guarantor shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder, (a) the sum
payable shall be increased as much as shall be necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section 6) the Noteholder receives an amount equal to the sum
they would have received had no such deductions been made, (b) such Guarantor
shall make such deductions, and (c) such Guarantor shall pay the full amount
deducted to the relevant taxing or other authority in accordance with applicable
law. Within 30 days after the date of any payment of Taxes, each applicable
Guarantor

                                       7
<PAGE>

shall furnish to the Noteholder the original or a certified copy of a receipt
evidencing payment thereof. Each Guarantor shall jointly and severally indemnify
and, within 10 days of demand therefor, pay the Noteholder for the full amount
of Taxes (including any Taxes imposed by any jurisdiction on amounts payable
under this Section 6) paid by the Noteholder, as appropriate, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally asserted.

OTHER TERMS.

                  Entire Agreement. This Guaranty, together with the Note and
the other Settlement Documents, constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior
agreements relating to a guaranty of the Guaranteed Obligations.

                  Headings. The headings in this Guaranty are for convenience of
reference only and are not part of the substance of this Guaranty.

                  Severability. Whenever possible, each provision of this
Guaranty shall be interpreted in such a manner to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

                  Notices. Whenever it is provided herein that any notice,
demand, request, consent, approval, declaration or other communication shall or
may be given to or served upon any of the parties by any other party, or
whenever any of the parties desires to give or serve upon another any such
communication with respect to this Guaranty, each such notice, demand, request,
consent, approval, declaration or other communication shall be in writing and
shall be addressed to the party to be notified as follows:

                           If to the Noteholder:

                           Enron Corp.
                           1400 Smith Street
                           Houston, Texas 77002
                           Attention:  General Counsel

                           with copies to:

                           Weil, Gotshal & Manges LLP
                           700 Louisiana, Suite 1600
                           Houston, Texas 77002
                           Attention:  Charles E. Harrell, Esq.

                                       8
<PAGE>

                           If to any Guarantor:

                           c/o EOTT Energy Partners, L.P.
                           200 West Sam Houston Parkway South
                           Suite 400
                           Houston, Texas 77042

or at such other address as may be substituted by notice given as herein
provided. The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice. Every notice, demand, request,
consent, approval, declaration or other communication hereunder shall be deemed
to have been validly served, given or delivered (i) upon the earlier of actual
receipt and three Business Days after the same shall have been deposited with
the United States mail, registered or certified mail, return receipt requested,
with proper postage prepaid, (ii) upon transmission, when sent by telecopy or
other similar facsimile transmission (with such telecopy or facsimile promptly
confirmed by delivery of a copy by personal delivery or United States mail as
otherwise provided in this Section 7.4), (iii) one Business Day after deposit
with a reputable overnight carrier with all charges prepaid or (iv) when
delivered, if hand-delivered by messenger.

                  Successors and Assigns. This Guaranty and all obligations of
the Guarantors hereunder shall be binding upon the successors and assigns of
each Guarantor (including a debtor-in-possession on behalf of such Guarantor)
and shall, together with the rights and remedies of the Noteholder hereunder,
inure to the benefit of the Noteholder, all future holders of any instrument
evidencing any of the Obligations and their respective successors and assigns.
No sales of participations, other sales, assignments, transfers or other
dispositions of any agreement governing or instrument evidencing the Obligations
or any portion thereof or interest therein shall in any manner affect the rights
of the Noteholder hereunder. The Guarantors may not assign, sell, hypothecate or
otherwise transfer any interest in or obligation under this Guaranty.

                  No Waiver; Cumulative Remedies; Amendments. The Noteholder
shall not by any act, delay, omission or otherwise be deemed to have waived any
of its rights or remedies hereunder, and no waiver shall be valid unless in
writing, signed by the Noteholder and then only to the extent therein set forth.
A waiver by the Noteholder of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Noteholder
would otherwise have had on any future occasion. No failure to exercise nor any
delay in exercising on the part of the Noteholder, any right, power or privilege
hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or future
exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies
provided by law. None of the terms or provisions of this Guaranty may be waived,
altered, modified, supplemented or amended except by an instrument in writing,
duly executed by the Noteoholder and Guarantors.

                                       9
<PAGE>

                  Termination. This Guaranty is a continuing guaranty and shall
remain in full force and effect until the Termination Date. Upon payment and
performance in full of the Guaranteed Obligations, the Noteholder shall deliver
to Guarantors such documents as the Guarantors may reasonably request to
evidence such termination.

                  Counterparts. This Guaranty may be executed in any number of
counterparts, each of which shall collectively and separately constitute one and
the same agreement.

                  FORUM SELECTION CLAUSE. SHOULD ANY DISPUTE ARISE CONCERNING
THE CONSTRUCTION AND/OR ENFORCEMENT OF THIS GUARANTY, EACH GUARANTOR JOINTLY AND
SEVERALLY UNCONDITIONALLY AND SPECIFICALLY AGREES AND CONSENTS THAT ANY
CONTROVERSY, CLAIM, OR DISPUTE ARISING OUT OF OR RELATING TO THIS GUARANTY, OR
ANY ALLEGED BREACH HEREOF, INCLUDING (WITHOUT LIMITATION) ANY DISPUTE REGARDING
THE EXECUTION, BREACH OR COMPLIANCE WITH THIS GUARANTY OR ANY RELATED DOCUMENTS,
OR CLAIMS FOR EQUITABLE OR INJUNCTIVE RELIEF, SHALL BE RESOLVED EXCLUSIVELY BY
THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND
HEREBY AGREES AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF THAT COURT. EACH
GUARANTOR JOINTLY AND SEVERALLY UNCONDITIONALLY AGREES THAT THE PREVAILING PARTY
OF ANY SUCH ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEY'S FEES
INCURRED IN PROSECUTING OR DEFENDING THAT DISPUTE.

                  GOVERNING LAW. EACH GUARANTOR JOINTLY AND SEVERALLY
UNCONDITIONALLY AGREES THAT, NOTWITHSTANDING ANY CONFLICTS OF LAWS PRINCIPLES,
ANY DISPUTE CONCERNING THIS GUARANTY WILL BE GOVERNED BY NEW YORK LAW.

                  Limitation on Guaranteed Obligations. Notwithstanding any
provision herein contained to the contrary, each Guarantor's liability hereunder
shall be limited to an amount not to exceed as of any date of determination the
aggregate principal amount of the Note, plus the interest thereon at the
applicable rate specified in the Note.

                                       10
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Guaranty as of the date first above written.

                                    EOTT ENERGY GENERAL PARTNER, LLC

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

                                    EOTT ENERGY PIPELINE LIMITED PARTNERSHIP

                                    By:  EOTT Energy General Partner, LLC, as
                                    general partner

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

                                    EOTT ENERGY OPERATION LIMITED PARTNERSHIP

                                    By:  EOTT Energy General Partner, LLC, as
                                    general partner

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

                                    EOTT ENERGY CANADA LIMITED PARTNERSHIP

                                    By:  EOTT Energy General Partner, LLC, as
                                    general partner

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

<PAGE>

                                    EOTT ENERGY LIQUIDS, L.P.

                                    By:  EOTT Energy General Partner, LLC, as
                                    general partner

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

                                    EOTT ENERGY LTD.

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

                                    EOTT ENERGY FINANCE CORP.

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

                                    ENRON CORP., as Noteholder

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

<PAGE>

                                    EXHIBIT D

                                     FORM OF

                             SECURED PROMISSORY NOTE

Initial Principal Amount:                                         Houston, Texas
$6,211,673.13                                                             , 2002
                                                                  -------

                  FOR VALUE RECEIVED, the undersigned, EOTT ENERGY PARTNERS,
L.P., a Delaware limited partnership (the "BORROWER"), hereby unconditionally
promises to pay to the order of ENRON CORP. ("ENRON"), or to its registered
assigns, at its office at 1400 Smith Street, Houston, Texas 77002, or such other
place as the holder of this Secured Promissory Note (this "NOTE") may designate
in writing from time to time, in lawful money of the United States of America
and in immediately available funds, the principal amount of six million
two-hundred eleven thousand six hundred seventy-three and 13/100s dollars
($6,211,673.13), and any increased principal amount arising pursuant to the
terms of this Note below, together with interest on the unpaid principal amount
of this Note outstanding from time to time from the date hereof, at the rate
provided below.

                  This Note is secured by an irrevocable letter of credit as
provided in that certain Settlement Agreement, dated as of October 3, 2002 (the
"SETTLEMENT AGREEMENT"), among the Borrower and certain of its affiliates on the
one hand, and Enron and certain of its affiliates on the other. Reference is
hereby made to the Settlement Agreement and the Letter of Credit for the terms
and conditions upon which the security interests were granted and the rights of
the holder of this Note in respect thereof. Payment of this Note is also
guaranteed by all of the Subsidiaries of the Borrower as provided in the
Guaranty, dated as of the date hereof (the "GUARANTY"), among the Borrower, its
Subsidiaries and Enron. Reference is hereby made to the Guaranty for a
description of the nature and extent of the guaranty and the rights of the
holder of this Note in respect thereof. All capitalized terms, unless otherwise
defined herein, shall have the meanings ascribed to them in the Settlement
Agreement.

         1. Interest.

                  (a) Subject to Section 1(b), the Borrower shall pay interest,
         based on the principal amount outstanding from time to time under this
         Note (including amounts capitalized pursuant to Section 1(b) below),
         semi-annually in arrears, in cash, on each April 1 and October 1,
         beginning on April 1, 2003 (each an "INTEREST PAYMENT DATE"), and on
         the Maturity Date at a rate equal to 10.0% per annum, based on a
         360-day year.

                  (b) If prior to an Interest Payment Date, neither the Borrower
         nor any direct or indirect Subsidiary of the Borrower shall have made
         any cash payments with respect to the interest accrued, principal or
         fees or premium, if any, on the Borrower's 11% Senior Notes due 2009,
         issued pursuant to the First Supplemental Indenture, dated October 1,
         1999, between The Bank of New York, as trustee, and the Borrower or on
         any note issued by any EOTT Party in exchange therefor, then the
         Borrower may, but shall not be required to, pay the interest due on
         this Note pursuant to Section 1(a) above by capitalizing and adding
         such

<PAGE>

         amount to the principal amount outstanding under this Note. If the
         Borrower shall elect to capitalize due and payable interest pursuant to
         the immediately preceding sentence, it shall notify the holder of this
         Note of such election on the Interest Payment Date on which such
         interest is due.

                  (c) Notwithstanding anything to the contrary set forth in this
         Section 1, if at any time until payment in full of this Note, the
         interest rate payable thereon exceeds the highest rate of interest
         permissible under any law which a court of competent jurisdiction
         shall, in a final determination, deem applicable hereto (the "MAXIMUM
         LAWFUL RATE"), then in such event and so long as the Maximum Lawful
         Rate would be so exceeded, the rate of interest payable on this Note
         shall be equal to the Maximum Lawful Rate; provided, however, that if
         at any time thereafter the interest rate payable thereon is less than
         the Maximum Lawful Rate, the Borrower shall continue to pay interest
         thereunder at the Maximum Lawful Rate until such time as the total
         interest received by the holder of this Note is equal to the total
         interest which it would have received had the interest rate on this
         Note been (but for the operation of this Section 1(c)) the interest
         rate payable since the Closing Date. Thereafter, the interest rate
         payable shall be the stated interest rate unless and until such rate
         again exceeds the Maximum Lawful Rate, in which event this Section 1(c)
         shall again apply. In no event shall the total interest received by the
         holder of this Note pursuant to the terms hereof exceed the amount
         which it could lawfully have received had the interest due hereunder
         been calculated for the full term hereof at the Maximum Lawful Rate. In
         the event the Maximum Lawful Rate is calculated pursuant to this
         Section 1(c), such interest shall be calculated at a daily rate equal
         to the Maximum Lawful Rate divided by the number of days in the year in
         which such calculation is made. In the event that a court of competent
         jurisdiction, notwithstanding the provisions of this Section 1(c),
         shall make a final determination that the holder of this Note has
         received interest hereunder in excess of the Maximum Lawful Rate, such
         holder shall, to the extent permitted by applicable law, promptly apply
         such excess first to any interest due and not yet paid under this Note,
         then to the outstanding principal of this Note (in the inverse order of
         maturity), then to other unpaid amounts under the Settlement Agreement
         and thereafter shall refund any excess to the Borrower or as a court of
         competent jurisdiction may otherwise order.

                  (d) If the Borrower shall default in the payment of any
         amounts due and payable under this Note (a "DEFAULTED NOTE PAYMENT")
         whether upon acceleration, at maturity or as otherwise provided herein,
         such Defaulted Note Payment shall bear interest at a rate equal to the
         lesser of (a) 12% per annum and (b) the Maximum Lawful Rate, which
         shall (i) accrue from the day of such default in payment to the date
         payment of such Defaulted Note Payment has been made or duly provided
         for, (ii) be payable on demand and (iii) be calculated set forth in
         this Sections 1(a) and (c).

         2. Payments.

                  (a) All principal hereof and interest thereon shall be due and
         payable on October 1, 2005 (the "MATURITY DATE").

                  (b) The Borrower shall make payments in respect of principal
         equal to one million dollars ($1,000,000) on each of October 1, 2003
         and October 1, 2004. The remaining principal due herein shall be due
         and payable on the Maturity Date.

                                       2
<PAGE>

                  (c) If any payment on this Note becomes due and payable on a
         Saturday, Sunday or other day on which commercial banks in Houston,
         Texas are authorized or required by law to close, the maturity thereof
         shall be extended to the next succeeding day that is not a Saturday,
         Sunday or other day on which commercial banks in Houston, Texas are
         authorized or required by law to close, and with respect to payments of
         principal, interest thereon shall be payable at the then applicable
         rate during such extension.

         3. Optional Prepayment. The Borrower shall have the right to prepay
this Note in full on the earlier of (i) the effective date of the EOTT Plan of
Reorganization and (ii) the date 180 days after the Petition Date by the payment
of an amount equal to five million dollars ($5,000,000) plus the interest
accrued on this Note through such date plus all amounts payable pursuant to
Section 4 hereof, if any (such amount, the "PREPAYMENT AMOUNT"); provided,
however, that the Borrower shall give Enron notice in writing of such prepayment
five Business Days prior to such prepayment. Upon the receipt and collection of
the Prepayment Amount, Enron shall return this Note to the Borrower marked
cancelled.

         4. Taxes.

                  (a) If, as a result of any change in law, rule or regulation
         from and after the Closing Date, the Borrower shall be required by law
         to deduct any present or future Taxes, levies, imposts, deductions,
         charges or withholdings, or any liabilities with respect thereto,
         excluding Taxes imposed on or measured by the net income of the holder
         of this Note, by the jurisdiction under the laws of which it is
         organized or any political subdivision thereof (all such non-excluded
         Taxes, levies, imposts, deductions, charges, withholdings and
         liabilities being hereinafter referred to as "ADDITIONAL TAX AMOUNTS"),
         from or in respect of any sum payable hereunder to the holder of this
         Note, (i) the sum payable shall be increased as may be necessary so
         that after making all required deductions (including deductions
         applicable to additional sums payable under this Section 4(a)) such
         holder receives an amount equal to the sum it would have received had
         no such deductions been made, (ii) the Borrower shall make such
         deductions, and (iii) the Borrower shall pay the full amount deducted
         to the relevant taxing or other authority in accordance with applicable
         law.

                  (b) In addition, the Borrower agrees to pay any present or
         future stamp or documentary Taxes or any other sales, transfer,
         exercise, mortgage recording or property Taxes, charges or similar
         levies that arise from any payment made hereunder or from the
         execution, sale, transfer, delivery or registration of, or otherwise
         with respect to, any of the Settlement Documents (hereinafter referred
         to as "OTHER TAXES").

                  (c) The Borrower shall indemnify any and all holders of this
         Note for the full amount of any Additional Tax Amounts payable pursuant
         to Section 4(a) and any Other Taxes payable pursuant to Section 4(b)
         (including without limitation, any such Additional Tax Amounts or Other
         Taxes imposed by any jurisdiction on amounts payable under this Section
         4(c) paid by any holder of this Note and any liability (including
         penalties, interest and expenses) arising therefrom or with respect
         thereto, whether or not such Additional Tax Amounts or Other Taxes were
         correctly or legally asserted). This indemnification shall be made
         within 30 days from the date such holder makes written demand therefor.

<PAGE>

                  (d) Within 30 days after the date of any payment of Additional
         Tax Amounts, the Borrower shall furnish to the applicable holder of
         this Note the original or a certified copy of a receipt evidencing
         payment thereof.

                  (e) Without prejudice to the survival of any other agreement
         of the Borrower hereunder, the agreements and obligations of the
         Borrower contained in this Section 4 shall survive the payment in full
         of this Note.

         5. Negative Covenant. The EOTT Parties jointly and severally
unconditionally covenant and agree that no EOTT Party shall directly or
indirectly form, incorporate or acquire any Subsidiary unless such Subsidiary
shall execute and deliver a guaranty containing the same terms and conditions as
the Guaranty.

         6. Set-Offs. ALL PAYMENTS TO BE MADE BY THE BORROWER HEREUNDER, WHETHER
ON ACCOUNT OF PRINCIPAL, INTEREST, FEES OR OTHERWISE, SHALL BE MADE WITHOUT
SET-OFF, DEDUCTION, COUNTERCLAIM OR RECOUPMENT EXCEPT AS OTHERWISE PERMITTED IN
WRITING BY ENRON CORP.

         7. Presentment, Demand, Protest and Notices. All parties now and
hereafter liable with respect to this Note, whether maker, principal, surety,
guarantor, endorser or otherwise, hereby WAIVE AND RELINQUISH presentment,
notice of presentment, demand, protest, notice of intent to accelerate, notice
of acceleration and all other notices of any kind.

         8. Amendment, Supplement and Waiver. The terms and conditions of this
Note may not be amended and supplemented except with the consent of the holder
hereof and any existing Default or compliance with any provision of this Note
may not be waived except with the written consent of the holder hereof;
provided, however, that without the consent of the holder hereof, this Note may
be amended or supplemented to cure any ambiguity, defect or inconsistency, in a
manner that does not materially adversely affect the holder hereunder, to
provide for the assumption of the Borrower's obligations to such holder by a
successor to the Borrower in case of a merger or consolidation, or to make any
change that would provide any additional rights or benefits to such holder.

         9. Defaults and Remedies. Each of the following constitutes an "EVENT
OF DEFAULT": (a) default in payment when due of the principal, interest thereon,
fees or other amounts, if any, on this Note; (b) failure by the Borrower or any
of its affiliates or Subsidiaries for five days after notice from Enron to
comply with any of their agreements in the Settlement Documents; (c) a material
breach of any representation, warranty or certification made or deemed made in
any Settlement Document; (d) the failure to pay the Cash Payment when due and
payable in accordance with the terms of the Settlement Agreement; (e) the
failure of any Settlement Document to be in full force and effect and valid,
binding and enforceable (other than in accordance with its terms); (f) the
failure of the Letter of Credit to be renewed or replaced (in form and substance
acceptable to Enron) at least 10 Business Days prior to its expiry, or the
failure of the Letter of Credit to be in full force and effect until the date 10
Business Days after the maturity date of this Note; (g) any Settlement Document
is declared null and void, or the Borrower or any of its Subsidiaries deny any
of their obligations under any Settlement Document; (h) any default under any
mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any

                                       4
<PAGE>

indebtedness for money borrowed by the Borrower or any of its Subsidiaries (or
the payments of which is guaranteed by the Borrower or any of its Subsidiaries)
which in any instance or when aggregated with all other such defaults exceeds $3
million in the aggregate, whether such indebtedness or guarantee now exists, or
is created after the date hereof, which default (1) is caused by a failure to
pay indebtedness at its stated final maturity (after giving effect to any
applicable grace period provided in such indebtedness) or (2) results in the
acceleration of such indebtedness prior to its stated final maturity; (i)
failure by the Borrower or any of its Subsidiaries to pay final judgments
aggregating in excess of $3 million (net of any amounts with respect to which a
reputable and creditworthy insurance company has acknowledged liability in
writing), which judgments are not paid, discharged or stayed for a period of 30
days; (j) the failure of the EOTT Parties to consummate a plan of reorganization
on terms and conditions and with provisions consistent with the Restructuring
Agreement within 180 days after the EOTT Petition Date; (k) the filing of a plan
of reorganization or liquidation for the EOTT Parties by any party that contains
terms inconsistent with the terms of the Settlement Agreement; (l) the
appointment of a chapter 11 or chapter 7 trustee in the EOTT Bankruptcy Cases;
(m) the filing for bankruptcy, insolvency or similar event in the United States
or the United Kingdom with respect to the issuer of the Letter of Credit
(provided that such event shall not constitute an Event of Default hereunder if
the Borrower shall cause to be delivered to Enron within 10 Business Days after
such event a replacement Letter of Credit issued by a bank acceptable to Enron,
in its sole discretion); and (n) subsequent to the consummation of the EOTT
Parties' plan of reorganization proposed in the EOTT Bankruptcy Cases, a court
of competent jurisdiction enters an order or decree under any bankruptcy law
that (1) is for relief against the Borrower or any of its Subsidiaries, (2)
appoints a custodian of the Borrower or any of its Subsidiaries or for all or
substantially all of the property of the Borrower or any of its Subsidiaries or
(3) orders the liquidation of the Borrower or any of its Subsidiaries and (4)
the order or decree remains unstayed and in effect for 60 consecutive days
(collectively, a "Bankruptcy Event").

         10. Acceleration. If any Event of Default occurs and is continuing, the
principal outstanding (including the amounts capitalized pursuant to Section
1(b) above) and the interest accrued thereon as of the date thereof, together
with any amounts due under Section 4 above, shall be due and payable immediately
without further action or notice. The holder of this Note may rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree and if all existing Events of Default (except for nonpayment
of this Note that has become due solely because of its acceleration) have been
cured or waived.

         11. Other Remedies. If an Event of Default occurs and is continuing,
the holder of this Note may pursue any available remedy to collect the payment
of this Note or to enforce the performance of any provision of this Note. A
delay or omission by the holder of this Note in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

         12. Settlement Agreement. As referenced in the Settlement Agreement,
and subject to the certain limitations set forth therein, the obligations of the
Borrower under this Note are secured by the Letter of Credit. The Letter of
Credit referred to in the Settlement Agreement shall be terminated upon the
terms and subject to the conditions set forth in the Settlement Agreement. THE
RIGHTS AND PRIVILEGES OF THE LIEN REFERRED TO IN THE SETTLEMENT

                                       5
<PAGE>

         13. AGREEMENT SHALL BE TRANSFERRED TO THE HOLDER OF THIS NOTE OR THE
HOLDER OF THE NOTE OF THE BORROWER ISSUED IN SATISFACTION OF THIS NOTE.

         14. Successors and Assigns. This Note, and each of the provisions
contained herein, applies to, inures to the benefit of and binds all parties
hereto, their successors and assigns, whether by voluntary action, operation of
law or otherwise.

         15. FORUM SELECTION CLAUSE. SHOULD ANY DISPUTE ARISE CONCERNING THE
CONSTRUCTION AND/OR ENFORCEMENT OF THIS NOTE, THE BORROWER HEREBY SPECIFICALLY
AGREES AND CONSENTS THAT ANY CONTROVERSY, CLAIM, OR DISPUTE ARISING OUT OF OR
RELATING TO THIS NOTE, OR ANY ALLEGED BREACH HEREOF, INCLUDING (WITHOUT
LIMITATION) ANY DISPUTE REGARDING THE EXECUTION, BREACH OR COMPLIANCE WITH THIS
NOTE OR ANY RELATED DOCUMENTS, OR CLAIMS FOR EQUITABLE OR INJUNCTIVE RELIEF,
SHALL BE RESOLVED EXCLUSIVELY BY THE UNITED STATES BANKRUPTCY COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK AND HEREBY AGREES AND CONSENTS TO THE EXCLUSIVE
JURISDICTION OF THAT COURT. THE BORROWER FURTHER AGREES THAT THE PREVAILING
PARTY OF ANY SUCH ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEY'S
FEES INCURRED IN PROSECUTING OR DEFENDING THAT DISPUTE.

         16. GOVERNING LAW. THE BORROWER AGREES THAT, NOTWITHSTANDING ANY
CONFLICTS OF LAWS PRINCIPLES, ANY DISPUTE CONCERNING THIS NOTE WILL BE GOVERNED
BY NEW YORK LAW.

                                      EOTT ENERGY PARTNERS, L.P.

                                      By: EOTT Energy Corp., as general partner

                                          By:
                                              --------------------------------

<PAGE>

                                    EXHIBIT E

                         FORM OF RESTRUCTURING AGREEMENT

                           [INCLUDED AS EXHIBIT 10.3]

<PAGE>

                                    EXHIBIT F

                                     FORM OF
                                   ROFR WAIVER

                            __________________ , 2002

EOTT Energy Partners, L.P.
EOTT Energy Liquids, L.P.

2000 West Sam Houston Parkway South
Suite 400
Houston, Texas 77042

Ladies and Gentlemen:

         Reference is made to that certain Purchase and Sale Agreement, dated as
of June 29, 2001 (the "Sale Agreement"), between Enron Corp. ("Enron") and EOTT
Energy Partners, L.P. ("EOTT").

         Enron hereby waives its right of first refusal to the sale of Assets
(as defined in the Sale Agreement) by EOTT or any of its affiliates under
Section 5.6 of the Sale Agreement and releases EOTT and its affiliates from the
obligations set forth therein.

         This waiver and release is being made in accordance with Section 9.2 of
the Sale Agreement and are effect as of the date of this letter.

                                                Very truly yours,

                                                ENRON CORP.

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

<PAGE>

                                   EXHIBIT G-1

                       FORM OF EPSC TERMINATION AGREEMENT

<PAGE>

                              TERMINATION AGREEMENT

         This Termination Agreement (this "AGREEMENT") is made and entered into
this 8th day of October, 2002 by and between Enron Pipeline Services Company
("EPSC") and EOTT Energy Corp. ("EOTT"). EPSC and EOTT are sometimes referred to
herein individually as a "PARTY" and collectively as the "PARTIES."

         WHEREAS, EPSC and EOTT are parties to that certain Corporate Services
Agreement, dated as of December 1, 2000, as amended (the "CORPORATE SERVICES
AGREEMENT");

         WHEREAS, neither Party is currently obligated to perform under such
agreement, nor does either Party currently have a claim against the other in
connection with the Corporate Services Agreement; and

         WHEREAS, EPSC and EOTT desire to terminate the Corporate Services
Agreement on the terms and conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual covenants, conditions
and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and affirmed, the
Parties agree as follows:

         38. Termination of Prior Agreement. Notwithstanding anything to the
contrary at law or in equity or any provision, term or condition to the contrary
contained in the Corporate Services Agreement or any agreements, certificates,
instruments or other documents entered into or delivered in connection
therewith, except for the Settlement Agreement, dated of even date herewith, by
and among EOTT and certain of its affiliates and subsidiaries and EPSC and
certain of its affiliates and subsidiaries (the "SETTLEMENT AGREEMENT"),
effective as of the date hereof, the Corporate Services Agreement (and any and
all agreements, certificates, instruments or other documents entered into in
connection therewith) shall be fully and finally terminated (including, without
limitation, all payments, financial commitments and other obligations
thereunder, of any nature whatsoever). No further obligation shall arise under
the Corporate Services Agreement with respect to either Party.

         39. Forum Selection; Choice of Law.

                  (a) FORUM SELECTION CLAUSE. SHOULD ANY DISPUTE ARISE
CONCERNING THE CONSTRUCTION AND/OR ENFORCEMENT OF THIS AGREEMENT, THE PARTIES
HEREBY SPECIFICALLY AGREE AND CONSENT THAT ANY SUCH CONTROVERSY, CLAIM, OR
DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY ALLEGED BREACH
THEREOF, INCLUDING (WITHOUT LIMITATION) ANY DISPUTE REGARDING THE EXECUTION,
BREACH OR COMPLIANCE WITH THIS AGREEMENT, OR CLAIMS FOR EQUITABLE OR INJUNCTIVE
RELIEF, SHALL BE RESOLVED EXCLUSIVELY BY THE UNITED STATES BANKRUPTCY COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND HEREBY AGREE AND CONSENT TO THE EXCLUSIVE
JURISDICTION OF THAT COURT. THE PARTIES FURTHER AGREE THAT THE PREVAILING PARTY
OF ANY

<PAGE>

SUCH ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEY'S FEES INCURRED
IN PROSECUTING OR DEFENDING THAT DISPUTE.

                  (b) GOVERNING LAW. THE PARTIES AGREE THAT, NOTWITHSTANDING ANY
CONFLICTS OF LAWS PRINCIPLES, ANY DISPUTE CONCERNING THIS AGREEMENT WILL BE
GOVERNED BY NEW YORK LAW.

         40. Miscellaneous.

                  (a) Counterparts. The Parties agree that this Agreement and
any other document required or contemplated to be executed in order to
consummate this Agreement may be executed in one or more counterparts, each of
which shall be deemed an original agreement. All counterparts of any such
document together shall constitute one and the same instrument.

                  (b) Entire Agreement. Except as set forth in the Settlement
Agreement, this Agreement sets forth the entire agreement between the Parties
and supersedes any and all prior agreements or understanding between the Parties
pertaining to the subject matter hereof.

                  (c) Amendments. This Agreement may not be amended, altered,
modified or waived, in whole or in part, except in a writing executed by all the
Parties to this Agreement.

                  (d) Captions. Captions and titles appearing at the beginning
of any of sections or subdivisions hereof are for convenience only and will not
constitute part of such section or subdivisions and will be disregarded in
construing the language contained in such section or subdivision.

                  (e) Severability. If any provision or portion of this
Agreement becomes invalid or unenforceable for any reason, there will be deemed
to be made such minor changes in such provision or portion as are necessary to
make it valid and enforceable. The invalidity or unenforceability of any
provision or portion hereof will not affect the validity or enforceability of
the other provisions or portions hereof.

<PAGE>
         IN WITNESS WHEREOF, the Parties have duly executed this Agreement
effective as of the date first above set forth.

                                   ENRON PIPELINE SERVICES COMPANY

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

                                   EOTT ENERGY CORP.

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

<PAGE>

                                   EXHIBIT G-2

                       FORM OF EGPFC TERMINATION AGREEMENT

<PAGE>

                              TERMINATION AGREEMENT

         This Termination Agreement (this "AGREEMENT") is made and entered into
this 8th day of October, 2002 by and between EGP Fuels Company ("EGP") and EOTT
Energy Corp. ("EOTT"). EGP and EOTT are sometimes referred to herein
individually as a "PARTY" and collectively as the "PARTIES."

         WHEREAS, EGP and EOTT are parties to that certain Transition Services
Agreement, dated as of June 29, 2001 (the "TRANSITION SERVICES AGREEMENT");

         WHEREAS, neither Party is currently obligated to perform under such
agreement, nor does either Party currently have a claim against the other in
connection with the Transition Services Agreement; and

         WHEREAS, EGP and EOTT desire to terminate the Transition Services
Agreement on the terms and conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual covenants, conditions
and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and affirmed, the
Parties agree as follows:

         41. Termination of Prior Agreement. Notwithstanding anything to the
contrary at law or in equity or any provision, term or condition to the contrary
contained in the Transition Services Agreement or any agreements, certificates,
instruments or other documents entered into or delivered in connection
therewith, except for the Settlement Agreement, dated of even date herewith, by
and among EOTT and certain of its affiliates and subsidiaries and EGP and
certain of its affiliates and subsidiaries (the "SETTLEMENT AGREEMENT"),
effective as of the date hereof, the Transition Services Agreement (and any and
all agreements, certificates, instruments or other documents entered into in
connection therewith) shall be fully and finally terminated (including, without
limitation, all payments, financial commitments and other obligations
thereunder, of any nature whatsoever). No further obligation shall arise under
the Transition Services Agreement with respect to either Party.

         42. Forum Selection; Choice of Law.

                  (a) FORUM SELECTION CLAUSE. SHOULD ANY DISPUTE ARISE
CONCERNING THE CONSTRUCTION AND/OR ENFORCEMENT OF THIS AGREEMENT, THE PARTIES
HEREBY SPECIFICALLY AGREE AND CONSENT THAT ANY SUCH CONTROVERSY, CLAIM, OR
DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY ALLEGED BREACH
THEREOF, INCLUDING (WITHOUT LIMITATION) ANY DISPUTE REGARDING THE EXECUTION,
BREACH OR COMPLIANCE WITH THIS AGREEMENT, OR CLAIMS FOR EQUITABLE OR INJUNCTIVE
RELIEF, SHALL BE RESOLVED EXCLUSIVELY BY THE UNITED STATES BANKRUPTCY COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND HEREBY AGREE AND CONSENT TO THE EXCLUSIVE
JURISDICTION OF THAT COURT. THE PARTIES FURTHER AGREE THAT THE PREVAILING PARTY
OF ANY

<PAGE>

SUCH ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEY'S FEES INCURRED
IN PROSECUTING OR DEFENDING THAT DISPUTE.

                  (b) GOVERNING LAW. THE PARTIES AGREE THAT, NOTWITHSTANDING ANY
CONFLICTS OF LAWS PRINCIPLES, ANY DISPUTE CONCERNING THIS AGREEMENT WILL BE
GOVERNED BY NEW YORK LAW.

         43. Miscellaneous.

                  (a) Counterparts. The Parties agree that this Agreement and
any other document required or contemplated to be executed in order to
consummate this Agreement may be executed in one or more counterparts, each of
which shall be deemed an original agreement. All counterparts of any such
document together shall constitute one and the same instrument.

                  (b) Entire Agreement. Except as set forth in the Settlement
Agreement, this Agreement sets forth the entire agreement between the Parties
and supersedes any and all prior agreements or understanding between the Parties
pertaining to the subject matter hereof.

                  (c) Amendments. This Agreement may not be amended, altered,
modified or waived, in whole or in part, except in a writing executed by all the
Parties to this Agreement.

                  (d) Captions. Captions and titles appearing at the beginning
of any of sections or subdivisions hereof are for convenience only and will not
constitute part of such section or subdivisions and will be disregarded in
construing the language contained in such section or subdivision.

                  (e) Severability. If any provision or portion of this
Agreement becomes invalid or unenforceable for any reason, there will be deemed
to be made such minor changes in such provision or portion as are necessary to
make it valid and enforceable. The invalidity or unenforceability of any
provision or portion hereof will not affect the validity or enforceability of
the other provisions or portions hereof.

<PAGE>

         IN WITNESS WHEREOF, the Parties have duly executed this Agreement
effective as of the date first above set forth.

                                          EGP FUELS COMPANY

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

                                          EOTT ENERGY CORP.

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

<PAGE>

                                   EXHIBIT G-3

                       FORM OF ENRON TERMINATION AGREEMENT

<PAGE>

                              TERMINATION AGREEMENT

         This Termination Agreement (this "AGREEMENT") is made and entered into
this 8th day of October, 2002 by and among Enron Corp. ("ENRON"), EOTT Energy
Corp., as general partner of EOTT Energy Partners, L.P., and EOTT Energy General
Partner, LLC, as the general partner of EOTT Energy Operating Limited
Partnership, EOTT Energy Pipeline Limited Partnership and EOTT Energy Canada
Limited Partnership (collectively the "EOTT PARTIES"). The EOTT Parties and
Enron are sometimes referred to herein individually as a "PARTY" and
collectively as the "PARTIES."

         WHEREAS, Enron and the EOTT Parties are parties to that certain
Corporate Services Agreement, dated as of dated as of March 24, 1994, as amended
(the "CORPORATE SERVICES AGREEMENT"); and

         WHEREAS, the Parties mutually desire to terminate the Corporate
Services Agreement on the terms and conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual covenants, conditions
and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and affirmed, the
Parties agree as follows:

         44. Termination of Prior Agreement. Notwithstanding anything to the
contrary at law or in equity or any provision, term or condition to the contrary
contained in the Corporate Services Agreement or any agreements, certificates,
instruments or other documents entered into or delivered in connection
therewith, except for the Settlement Agreement, dated of even date herewith, by
and among the EOTT Parties and certain of their affiliates and subsidiaries and
Enron and certain of its affiliates and subsidiaries (the "SETTLEMENT
AGREEMENT"), effective as of the date hereof, the Corporate Services Agreement
(and any and all agreements, certificates, instruments or other documents
entered into in connection therewith) shall be fully and finally terminated
(including, without limitation, all payments, financial commitments and other
obligations thereunder, of any nature whatsoever). No further obligation shall
arise under the Corporate Services Agreement with respect to either Party.

         45. Forum Selection; Choice of Law.

                  (a) FORUM SELECTION CLAUSE. SHOULD ANY DISPUTE ARISE
CONCERNING THE CONSTRUCTION AND/OR ENFORCEMENT OF THIS AGREEMENT, THE PARTIES
HEREBY SPECIFICALLY AGREE AND CONSENT THAT ANY SUCH CONTROVERSY, CLAIM, OR
DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY ALLEGED BREACH
THEREOF, INCLUDING (WITHOUT LIMITATION) ANY DISPUTE REGARDING THE EXECUTION,
BREACH OR COMPLIANCE WITH THIS AGREEMENT, OR CLAIMS FOR EQUITABLE OR INJUNCTIVE
RELIEF, SHALL BE RESOLVED EXCLUSIVELY BY THE UNITED STATES BANKRUPTCY COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND HEREBY AGREE AND CONSENT TO THE EXCLUSIVE
JURISDICTION OF THAT COURT. THE PARTIES FURTHER AGREE THAT THE PREVAILING PARTY
OF ANY

<PAGE>

SUCH ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE ATTORNEY'S FEES INCURRED
IN PROSECUTING OR DEFENDING THAT DISPUTE.

                  (b) GOVERNING LAW. THE PARTIES AGREE THAT, NOTWITHSTANDING ANY
CONFLICTS OF LAWS PRINCIPLES, ANY DISPUTE CONCERNING THIS AGREEMENT WILL BE
GOVERNED BY NEW YORK LAW.

         46. Miscellaneous.

                  (a) Counterparts. The Parties agree that this Agreement and
any other document required or contemplated to be executed in order to
consummate this Agreement may be executed in one or more counterparts, each of
which shall be deemed an original agreement. All counterparts of any such
document together shall constitute one and the same instrument.

                  (b) Entire Agreement. Except as set forth in the Settlement
Agreement, this Agreement sets forth the entire agreement between the Parties
and supersedes any and all prior agreements or understanding between the Parties
pertaining to the subject matter hereof.

                  (c) Amendments. This Agreement may not be amended, altered,
modified or waived, in whole or in part, except in a writing executed by all the
Parties to this Agreement.

                  (d) Captions. Captions and titles appearing at the beginning
of any of sections or subdivisions hereof are for convenience only and will not
constitute part of such section or subdivisions and will be disregarded in
construing the language contained in such section or subdivision.

                  (e) Severability. If any provision or portion of this
Agreement becomes invalid or unenforceable for any reason, there will be deemed
to be made such minor changes in such provision or portion as are necessary to
make it valid and enforceable. The invalidity or unenforceability of any
provision or portion hereof will not affect the validity or enforceability of
the other provisions or portions hereof.

<PAGE>

         IN WITNESS WHEREOF, the Parties have duly executed this Agreement
effective as of the date first above set forth.

                                   Enron CORP.

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

                                   EOTT ENERGY CORP., as general partner of EOTT
                                   Energy Partners, L.P.

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

                                   EOTT ENERGY GENERAL PARTNER, LLC, as general
                                   partner of EOTT Energy Operating Limited
                                   Partnership, EOTT Energy Pipeline Limited
                                   Partnership and EOTT Energy Canada Limited
                                   Partnership

                                   By:
                                      ------------------------------------------
                                   Name:
                                   Title:<PAGE>
                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY
================================================================================

                             RESTRUCTURING AGREEMENT

                                  by and among

           EOTT ENERGY PARTNERS, L.P., and certain of its subsidiaries
                                (the "COMPANY"),

                   Enron Corp., and certain of its affiliates
                                   ("ENRON"),

                           Standard Chartered Bank plc
                             ("STANDARD CHARTERED")

                  STANDARD CHARTERED TRADE SERVICES CORPORATION
                                    ("SCTSC")

                          LEHMAN COMMERCIAL PAPER INC.
                                   ("LEHMAN")

                                       and

                        CERTAIN HOLDERS OF THE COMPANY'S
                            11% SENIOR NOTES DUE 2009
                                   ("HOLDERS")

                           dated as of October 7, 2002

================================================================================

<PAGE>

                                TABLE OF CONTENTS

             This Table of Contents is not part of the Agreement to
           which it is attached but is inserted for convenience only.

<Table>
<Caption>
                                                                                                               Page
                                                                                                                No.
                                                                                                                ---
<S>                                                                                                              <C>
ARTICLE I. THE PLAN OF REORGANIZATION.............................................................................2
         SECTION 1.1       THE PLAN...............................................................................2
         SECTION 1.2       HOLDER ACTIONS.........................................................................3
         SECTION 1.3       STANDARD CHARTERED, SCTSC AND LEHMAN ACTIONS...........................................5
         SECTION 1.4       ENRON'S ACTIONS........................................................................6
ARTICLE II. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.........................................................8
         SECTION 2.1       ORGANIZATION AND QUALIFICATION.........................................................8
         SECTION 2.2       CAPITALIZATION.........................................................................8
         SECTION 2.3       AUTHORITY RELATIVE TO THIS AGREEMENT...................................................8
         SECTION 2.4       NON-CONTRAVENTION; APPROVALS AND CONSENTS..............................................9
         SECTION 2.5       LEGAL PROCEEDINGS......................................................................9
         SECTION 2.6       INFORMATION SUPPLIED; COMPANY REPORTS.................................................10
ARTICLE III. REPRESENTATIONS AND WARRANTIES OF THE HOLDERS  STANDARD CHARTERED, SCTSC, LEHMAN AND ENRON..........11
         SECTION 3.1       ORGANIZATION AND QUALIFICATION........................................................11
         SECTION 3.2       AUTHORITY RELATIVE TO THIS AGREEMENT..................................................11
         SECTION 3.3       ADEQUATE DISCLOSURE...................................................................11
         SECTION 3.4       OWNERSHIP OF OLD NOTES................................................................11
ARTICLE IV. COVENANTS OF THE COMPANY.............................................................................12
         SECTION 4.1       CONDUCT OF BUSINESS...................................................................12
         SECTION 4.2       ISSUANCE OF SECURITIES................................................................12
         SECTION 4.3       APPOINTMENT OF COMMITTEES.............................................................12
         SECTION 4.4       BEST EFFORTS..........................................................................12
         SECTION 4.5       INVESTIGATION OF PRE-PETITION AGREEMENTS..............................................12
         SECTION 4.6       CONSULTATION..........................................................................12
         SECTION 4.7       PRESS RELEASE.........................................................................12
ARTICLE V. ADDITIONAL AGREEMENTS.................................................................................13
         SECTION 5.1       EXPENSES..............................................................................13
ARTICLE VI. TERMINATION, AMENDMENT AND WAIVER....................................................................13
         SECTION 6.1       TERMINATION...........................................................................13
         SECTION 6.2       EFFECT OF TERMINATION.................................................................16
         SECTION 6.3       AMENDMENT.............................................................................16
         SECTION 6.4       WAIVER................................................................................16
ARTICLE VII. GENERAL PROVISIONS..................................................................................17
         SECTION 7.1       NON-SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS.................17
</Table>

<PAGE>
<Table>
<Caption>
                                                                                                               Page
                                                                                                                No.
                                                                                                                ---
<S>                                                                                                              <C>
         SECTION 7.2       NOTICES...............................................................................17
         SECTION 7.3       ENTIRE AGREEMENT; INCORPORATION OF EXHIBITS...........................................20
         SECTION 7.4       INDIVIDUAL LIABILITY..................................................................20
         SECTION 7.5       PUBLIC ANNOUNCEMENTS..................................................................20
         SECTION 7.6       NO THIRD PARTY BENEFICIARIES..........................................................21
         SECTION 7.7       NO ASSIGNMENT; BINDING EFFECT.........................................................21
         SECTION 7.8       HEADINGS..............................................................................21
         SECTION 7.9       INVALID PROVISIONS....................................................................21
         SECTION 7.10      GOVERNING LAW.........................................................................21
         SECTION 7.11      ENFORCEMENT OF AGREEMENT..............................................................21
         SECTION 7.12      COUNTERPARTS..........................................................................21
         SECTION 7.13      EFFECTIVENESS OF AGREEMENT............................................................21
</Table>

                                       ii
<PAGE>
                             RESTRUCTURING AGREEMENT

         This Restructuring Agreement dated as of October 7, 2002 (this
"AGREEMENT") is made and entered into by and among EOTT Energy Partners, L.P., a
Delaware limited partnership, EOTT Energy Finance Corp., a Delaware corporation,
EOTT Energy General Partner, L.L.C., a Delaware limited liability company, EOTT
Energy Operating Limited Partnership, a Delaware limited partnership, EOTT
Energy Canada Limited Partnership, a Delaware limited partnership, EOTT Energy
Pipeline Limited Partnership, a Delaware limited partnership, EOTT Energy
Liquids, L.P., a Delaware limited partnership (collectively, the "COMPANY"),
Enron Corp., an Oregon corporation and as debtor-in-possession, Enron North
America Corp., a Delaware corporation and as debtor-in-possession, Enron Energy
Services, Inc., a Delaware corporation and as debtor-in-possession, Enron
Pipeline Services Company, a Delaware corporation, EGP Fuels Company, a Delaware
corporation, and Enron Gas Liquids, Inc., a Delaware corporation and as
debtor-in-possession (collectively, "ENRON"), Standard Chartered Bank plc, a
banking institution organized and existing under the laws of England and Wales
("STANDARD CHARTERED"), Standard Chartered Trade Services Corporation, a
Delaware corporation ("SCTSC"), Lehman Commercial Paper Inc., a New York
corporation ("LEHMAN") and the undersigned holders (each a "HOLDER" and
collectively, the "HOLDERS") of over 56% of the aggregate principal amount of
the Company's 11% Senior Notes due 2009 (the "OLD NOTES").

         WHEREAS, the Holders are the owners of the outstanding principal amount
of Old Notes set forth opposite their names on the signature pages hereof;

         WHEREAS, Standard Chartered is the lender and issues letters of credit
under that certain Second Amended and Restated Reimbursement, Loan and Security
Agreement, dated April 23, 2002 (the "CREDIT AGREEMENT");

         WHEREAS, SCTSC (i) purchases crude oil pursuant to the Commodity
Repurchase Agreement, dated February 28, 1998, as amended (the "COMMODITY
REPURCHASE AGREEMENT"), and (ii) purchases receivables pursuant to the
Receivable(s) Purchase Agreement, dated October 19, 1999, as amended (the
"RECEIVABLES PURCHASE AGREEMENT");

         WHEREAS, the Company, the Holders, Lehman and Standard Chartered have
each determined that it is advisable and in their respective best interests to
consummate, and have approved, a restructuring of the Company's capitalization
as provided herein and in a plan of reorganization in the form attached hereto
as Exhibit A (the "PLAN");

         WHEREAS, the Company and Enron desire to settle certain claims among
Enron and certain of its affiliates and the Company and certain of its
affiliates, to transfer to the Company employees of subsidiaries of Enron who
perform services for the Company, and to take other actions as contemplated by
the Settlement Agreement attached hereto as Exhibit B (the "ENRON SETTLEMENT
AGREEMENT"); and

                                       1
<PAGE>
         WHEREAS, the parties hereto desire to make certain representations and
warranties, and certain agreements, in each case in connection with the
transactions contemplated by this Agreement and the Plan;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                   ARTICLE I.
                           THE PLAN OF REORGANIZATION

         SECTION 1.1 THE PLAN. Subject to the other terms hereof and provided
that this Agreement shall not have been terminated in accordance with Section
6.1, the Company has determined to consummate a restructuring of its capital
structure by means of a pre-negotiated plan of reorganization in voluntary cases
filed by the Company (each case individually or, collectively, as the context
requires, the "BANKRUPTCY CASE") under Chapter 11 Title 11 of the United States
Code (the "BANKRUPTCY CODE"). Within three business days following the date of
this Agreement, the Company shall commence a Bankruptcy Case in the Southern
District of Texas (the "BANKRUPTCY COURT") and seek confirmation of the Plan by
the Bankruptcy Court. The principal components of the Plan are as follows:

         (a) A settlement of certain claims among Enron and persons affiliated
with Enron and the Company and persons affiliated with the Company, pursuant to
and in accordance with the Enron Settlement Agreement.

         (b) The amendment and restatement of the limited liability company
agreement of EOTT Energy General Partner, LLC (following such amendment and
restatement, "LLC NEWCO") to have the provisions contemplated by Exhibit C.

         (c) The formation of a subsidiary Delaware limited liability company
("SUBSIDIARY LLC") as a wholly-owned subsidiary of LLC Newco.

         (d) The cancellation of all of the equity interests in LLC Newco
outstanding immediately prior to consummation of the Plan.

         (e) The cancellation of all of the outstanding Old Notes and the
issuance to all former holders of the Old Notes of (i) an aggregate of $100
million principal amount of senior notes due 2010 issued by LLC Newco pursuant
to an indenture to have the terms described in Exhibit D and (ii) 11,947,820
common units in LLC Newco ("LLC UNITS").

         (f) The cancellation of all of the equity interests in the Company
outstanding immediately prior to consummation of the Plan. The issuance to the
persons who owned common units in the Company that were cancelled (the "OLD
UNITS") of (i) an aggregate of 369,520 LLC Units and (ii) warrants, having the
terms described on Exhibit E, to purchase an

                                       2
<PAGE>

aggregate of 957,981 LLC Units (the "WARRANTS"). No fractional LLC Units or
Warrants to purchase fractional LLC Units will be issued to holders of Old
Units. The number of LLC Units and the number of LLC Units purchasable pursuant
to the Warrants to which each holder of Old Units is entitled will be rounded up
or down to the nearest whole number of LLC Units. Holders of all other equity
interests in the Company, including the general partner interest, the
subordinated units and the additional partnership interests, will receive no
consideration in the restructuring with respect to such interests.

         (g) The consummation of a new exit credit facility with Standard
Chartered and Lehman, in one or more documents, containing the terms described
in Exhibit F (the "NEW CREDIT FACILITY").

         (h) The issuance of the general partner interest in the Company to LLC
Newco and the issuance of the limited partner interest in the Company to
Subsidiary LLC.

         (i) The establishment of an LLC Unit incentive plan for employees and
directors of LLC Newco pursuant to which up to 1,200,000 LLC Units ("MANAGEMENT
INCENTIVE UNITS") will be reserved for issuance pursuant to options or
restricted LLC Unit grants. The plan will be administered by the compensation
committee of the board of managers of LLC Newco.

         (j) LLC Newco and the Company would release all persons who served or
who are serving as directors and officers of LLC Newco and the Company for their
acts and omissions while so serving, other than for fraud or willful misconduct.

         (k) The payment to Enron of $1.25 million in cash pursuant to and in
accordance with the Enron Settlement Agreement.

         (l) The execution and delivery by the Company to Enron of a promissory
note in the initial principal amount of $6,211,673.13, secured by a letter of
credit issued by Standard Chartered or another bank acceptable to Enron.

         (m) The approval of the Enron Settlement Agreement and related
documents by the bankruptcy court having jurisdiction over Enron's bankruptcy
(the "ENRON BANKRUPTCY COURT").

         SECTION 1.2 HOLDER ACTIONS. (a) Subject to the terms and conditions of
this Agreement, each Holder hereby severally:

         (i)      agrees to vote or cause to be voted all claims attributed to
                  the Holder's Old Notes in favor of the Plan and in connection
                  therewith to execute a ballot or ballots voting to accept the
                  Plan;

         (ii)     agrees to vote against any competing plan that may interfere
                  with or be inconsistent with the Plan and in connection
                  therewith to execute a ballot or ballots voting to reject such
                  competing plan;

                                       3
<PAGE>
         (iii)    agrees not to withdraw or otherwise revoke or cause to be
                  withdrawn or otherwise revoked the Holder's vote in favor of
                  the Plan;

         (iv)     agrees not to grant or cause to be granted to any other person
                  or entity any proxy to vote with respect to the Plan (except
                  with respect to permitted transferees under this Section 1.2);

         (v)      agrees not to, and will cause the professionals directly
                  engaged in the administration of their respective Old Notes
                  not to, directly or indirectly, take any action (including,
                  without limitation, as a member of a creditors' committee), or
                  solicit, initiate, fund or encourage any competing plan, that
                  may interfere with or be inconsistent with the Plan;

         (vi)     subject to the date by which the Confirmation Date must occur
                  set forth in Section 6.1(e)(ix), agrees to the extension of
                  any exclusive period under 11 U.S.C. Section 1121 necessary to
                  obtain confirmation of the Plan during such extended exclusive
                  period;

         (vii)    agrees to support an order of the Bankruptcy Court in the
                  Bankruptcy Case approving the Enron Settlement Agreement in
                  full, and agrees not to take, and will cause the professionals
                  directly engaged in the administration of their respective Old
                  Notes not to take, any action seeking to oppose the entry of
                  an order in the Bankruptcy Case approving the Enron Settlement
                  Agreement or to vacate or amend such order or to avoid the
                  rights and benefits of a party under the Enron Settlement
                  Agreement;

         (viii)   acknowledges the validity, extent and priority of Standard
                  Chartered's claims and liens pursuant to the Credit Agreement
                  and SCTSC's claims and liens pursuant to the Commodity
                  Repurchase Agreement and the Receivables Purchase Agreement,
                  each without counterclaim or setoff, acknowledges SCTSC's
                  ownership of the property that is the subject of the Commodity
                  Repurchase Agreement and the Receivables Purchase Agreement,
                  and agrees not to, and will cause the professionals directly
                  engaged in the administration of their respective Old Notes
                  not to, directly or indirectly, take any action (including,
                  without limitation, as a member of a creditors' committee), or
                  solicit, initiate, fund or encourage any action to challenge
                  the validity, extent, perfection or priority of the rights,
                  claims and liens of Standard Chartered under the Credit
                  Agreement and related agreements or SCTSC under the Commodity
                  Repurchase Agreement and the Receivables Purchase Agreement;
                  and

         (ix)     agrees to support approval of the DIP Financings, including,
                  without limitation, a complete roll-up of Standard Chartered's
                  claims pursuant thereto.

         (b) So long as this Agreement has not been validly terminated: (i) no
Holders will file a notice of default, acceleration or sale or take any other
action to collect on or enforce the Old Notes, including, without limitation,
instructing the trustee under the indenture for the Old Notes ("TRUSTEE") on how
to proceed in the exercise of any and all remedies (provided, however, that

                                       4
<PAGE>

the filing of a proof of claim or interest in the Bankruptcy Case shall not be a
violation of this Section 1.2(b)(i)), and (ii) each Holder will give
instructions to the Trustee, if and when reasonably appropriate and requested in
writing by the Company, to desist from taking action that is inconsistent with
this Agreement or the Plan.

         (c) So long as this Agreement has not been validly terminated, no
Holder will, directly or indirectly, sell, assign, transfer, hypothecate or
otherwise dispose of (i) any Old Notes beneficially owned by it or as to which
it has investment authority or discretion (including Old Notes acquired after
the date hereof), (ii) any claim (as that term is defined in Section 101(5) of
the Bankruptcy Code) arising from, based on or related to the Old Notes, or
(iii) any option, interest in, or right to acquire any Old Notes or claim
referred to in clauses (i) and (ii) above, unless the transferee of any Old
Notes, claim, option, interest in or right referred to in clauses (i), (ii) or
(iii) agrees in writing for the benefit of each of the other parties hereto to
be bound by all of the terms of this Agreement and executes a counterpart
signature page to this Agreement. Any purported transfer by any Holder in
violation of this Agreement shall be null and void and of no force and effect
and the purported transferee shall have no rights or privileges in or with
respect to the Company. Notwithstanding each Holder's ownership or rights in any
Old Notes as of the date of this Agreement, each Holder agrees that the terms of
this Agreement shall also apply to any Old Notes acquired by or for the benefit
of such Holder subsequent to the date of this Agreement.

         SECTION 1.3 STANDARD CHARTERED, SCTSC AND LEHMAN ACTIONS. Subject to
the terms and conditions of this Agreement, each of Standard Chartered, SCTSC,
and Lehman (with respect to itself hereby and as to its claims arising out of
its post-petition lending):

         (a) agrees to support entry of an order by the Bankruptcy Court
confirming the Plan;

         (b) agrees not to, and will cause its respective officers, directors,
employees and professionals or other agents not to, directly or indirectly, take
any action (including, without limitation, as a member of a creditors'
committee), or solicit, initiate, fund or encourage any competing plan, that may
interfere with or be inconsistent with the Plan;

         (c) subject to the date by which the Confirmation Date must occur set
forth in Section 6.1(e)(ix), agrees to the extension of any exclusive period
under 11 U.S.C. Section 1121 necessary to obtain confirmation of the Plan during
such extended exclusive period;

         (d) agrees to support an order of the Bankruptcy Court in the
Bankruptcy Case approving the Enron Settlement Agreement in full, and agrees not
to take, and will cause their respective officers, directors, employees and
professionals or other agents not to take, any action seeking to oppose the
entry of an order in the Bankruptcy Case approving the Enron Settlement
Agreement or to vacate or amend such order or to avoid the rights and benefits
of any party under the Settlement Agreement; provided, however, nothing
contained herein shall be deemed to restrict the sale or transfer by Standard
Chartered or SCTSC of any claims attributable to the Credit Agreement, Commodity
Repurchase Agreement and Receivables Purchase Agreement, provided that the
purchaser of such claims agrees to be bound by the terms hereof, including this
Section 1.3;

                                       5
<PAGE>
         (e) acknowledges the validity, extent, perfection and priority of
Standard Chartered's claims and liens pursuant to the Credit Agreement and
SCTSC's claims and liens pursuant to the Commodity Repurchase Agreement and the
Receivables Purchase Agreement, each without counterclaim or setoff,
acknowledges SCTSC's ownership of the property that is the subject of the
Commodity Repurchase Agreement and the Receivables Purchase Agreement, and
agrees not to, and will cause its respective officers, directors, employees and
professionals or other agents not to, directly or indirectly, take any action
(including, without limitation, as a member of a creditors' committee), or
solicit, initiate, fund or encourage any action to challenge the validity,
extent, perfection or priority of the rights, claims and liens of Standard
Chartered under the Credit Agreement and related agreements or SCTSC under the
Commodity Repurchase Agreement and the Receivables Purchase Agreement; and

         (f) agrees to support entry of interim and final orders by the
Bankruptcy Court approving the Standard Chartered and Lehman debtor in
possession financing contemplated by the Bankruptcy Case, in one or more
documents containing the terms set forth in Exhibit F, and in form and substance
acceptable to Standard Chartered, SCTSC and Lehman (the "DIP FINANCINGS"), and
all of its terms, including, without limitation, the roll up of pre-petition
obligations as set forth therein and shall not support any other debtor in
possession financing.

For the avoidance of doubt, Lehman's obligations set forth in this Section 1.3
relate to Lehman's capacity as a debtor in possession lender, and not in its
capacity as a Holder, which obligations are address in Section 1.2 hereof.

         SECTION 1.4 ENRON'S ACTIONS. Contemporaneously with the execution of
this Agreement, Enron and certain of its subsidiaries and the Company and
certain of its subsidiaries have entered into the Enron Settlement Agreement.
Subject to the terms and conditions of this Agreement and the Enron Settlement
Agreement, Enron hereby:

         (a) agrees to vote, or cause to be voted, all claims attributable to
any debt and, to the extent Enron has the contractual right to vote or cause to
be voted the equity interest it owns or controls in the Company or the Company's
affiliates, which determination shall be made by Enron in its reasonable
judgment, to vote, or cause such equity interest to be voted, in favor of the
Plan and in connection therewith to execute a ballot or ballots voting to accept
the Plan;

         (b) agrees to vote, or cause to be voted, all claims attributable to
any debt against and, to the extent Enron has the contractual right to vote or
cause to be voted the equity interest it owns or controls in the Company or the
Company's affiliates, which determination shall be made by Enron in its
reasonable judgment, to vote, or cause such equity interest to be voted, against
any competing plan that may interfere with or be inconsistent with the Plan and
in connection therewith to execute a ballot or ballots voting to reject such
competing plan;

         (c) agrees not to withdraw or otherwise revoke or cause to be withdrawn
or otherwise revoked its vote in favor of the Plan;

         (d) agrees not to grant or cause to be granted to any other person or
entity any proxy to vote with respect to the Plan;

                                       6
<PAGE>
         (e) agrees to take such actions as are reasonably necessary or
appropriate to obtain the approval of the terms of the Enron Settlement
Agreement by the Enron Bankruptcy Court;

         (f) agrees not to, and will cause its respective officers, directors,
and employees (including, without limitation, to the extent any such person acts
as the representative of any Enron Party (as defined in the Enron Settlement
Agreement) on any committee of the creditors appointed in any Bankruptcy Case of
the EOTT Party (as defined in the Enron Settlement Agreement)) not to, directly
or indirectly, take any action, or solicit, initiate, fund or encourage any
competing plan, that may interfere with or be inconsistent with the Plan;

         (g) subject to the date by which the Confirmation Date must occur set
forth in Section 6.1(e)(ix), agrees to the extension of any exclusive period
under 11 U.S.C. Section 1121 necessary to obtain confirmation of the Plan during
such extended exclusive period;

         (h) agrees that, for so long as (i) there is a Restructuring Committee
of the Board of Directors of the general partner of the Company composed of one
or more non-employee members and (ii) none of the Company, any Holder, Standard
Chartered, SCTSC or Lehman is in material breach of a representation or
warranty, or any covenant made for the benefit of Enron herein and no EOTT Party
is in material breach of any Settlement Document (as defined in the Enron
Settlement Agreement), without the prior written consent of the Restructuring
Committee, Enron will not take any action to (w) remove any director of the
Company's general partner, (x) elect any additional person as a director of the
Company's general partner, (y) alter or amend the Certificate of Incorporation
or By-Laws of the Company's general partner or (z) otherwise participate in or
effect the operations or management of the Company except as contemplated by the
Enron Settlement Agreement;

         (i) acknowledges the validity, extent, perfection and priority of
Standard Chartered's claims and liens pursuant to the Credit Agreement and
SCTSC's claims and liens pursuant to the Commodity Repurchase Agreement and the
Receivables Purchase Agreement, each without counterclaim or setoff,
acknowledges SCTSC's ownership of the property that is the subject of the
Commodity Repurchase Agreement and the Receivables Purchase Agreement, and
agrees not to and will cause its respective officers, directors, and employees
(including, without limitation, to the extent any such person acts as the
representative of any Enron Party on any committee of the creditors of the EOTT
Party) not to, directly or indirectly, take any action, or solicit, initiate,
fund or encourage any action to challenge the validity, extent, perfection or
priority of the rights, claims and liens of Standard Chartered under the Credit
Agreement and related agreements or SCTSC under the Commodity Repurchase
Agreement and the Receivables Purchase Agreement; and

         (j) agrees to support approval of the DIP Financings, including,
without limitation, a complete roll-up of Standard Chartered's claims pursuant
thereto.

                                       7
<PAGE>
                                  ARTICLE II.
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents and warrants to the Holders, Standard Chartered,
SCTSC, Lehman and Enron as of the date hereof:

         SECTION 2.1 ORGANIZATION AND QUALIFICATION. The Company is a limited
partnership duly organized, validly existing and in good standing under the laws
of its jurisdiction of formation and has full power and authority to conduct its
business as and to the extent now conducted and to own, use and lease its assets
and properties. The Company has previously delivered to the Holders, Standard
Chartered, SCTSC, Lehman and Enron correct and complete copies of its
partnership agreement as amended through the date hereof.

         SECTION 2.2 CAPITALIZATION. The Company has 18,476,011 Old Units,
9,000,000 subordinated units, and $9,318,000 of additional partnership interests
outstanding, and 195,000 Old Units are reserved for issuance pursuant to the
1994 Unit Option Plan (the "UNIT PLAN"). All of the issued and outstanding Old
Units, subordinated units and additional partnership interests are, and all Old
Units reserved for issuance will be upon issuance in accordance with the terms
specified in the instruments or agreements pursuant to which they are issuable,
duly authorized, validly issued, fully paid and nonassessable. Except for Old
Units reserved for issuance upon the exercise of currently outstanding options
granted under the Unit Plan, there are no outstanding subscriptions, options,
warrants, rights (including "phantom" unit rights), preemptive rights or other
contracts, commitments, understandings or arrangements, including any right of
conversion or exchange under any outstanding security, instrument or agreement
(together, "UNIT-RELATED AGREEMENTS"), obligating the Company or any of its
subsidiaries to issue or sell any partnership interest or other equity interest
of the Company or any subsidiary or to grant, extend or enter into any
Unit-Related Agreement with respect thereto or otherwise provide any payment or
compensation based on "phantom" units or measured by the value of the Company's
or any subsidiary's units, assets, revenues or other similar measure.

         SECTION 2.3 AUTHORITY RELATIVE TO THIS AGREEMENT. The Company has full
power and authority to enter into this Agreement and to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution,
delivery and performance of this Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby have been duly and
validly approved by the Board of Directors of the Company's general partner, and
no other proceedings on the part of the Company, its general partner or its
unitholders are necessary to authorize the execution, delivery and performance
of this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby. This Agreement has been duly and validly
executed and delivered by the Company and constitutes a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

                                       8
<PAGE>

         SECTION 2.4 NON-CONTRAVENTION; APPROVALS AND CONSENTS. (a) Other than
as contemplated by this Agreement and except for defaults, violations and other
matters to be caused by filing the Bankruptcy Case, the execution and delivery
of this Agreement by the Company does not, and the performance by the Company of
its obligations hereunder and the consummation of the transactions contemplated
hereby will not, conflict with, result in a material violation or breach of,
constitute (with or without notice or lapse of time or both) a default under,
result in or give to any person any right of payment or reimbursement,
termination, cancellation, modification or acceleration of, or result in the
creation or imposition of any lien, claim, mortgage, charge, encumbrance,
security interest, pledge or equity of any kind (together, a "LIEN") upon any of
the assets or properties of the Company or any of its subsidiaries under, any of
the terms, conditions or provisions of (i) the Partnership Agreement of the
Company or (ii) any statute, law, rule, regulation or ordinance (together,
"LAWS"), or any judgment, decree, order, writ, permit or license (together,
"ORDERS"), of any court, tribunal, arbitrator, authority, agency, commission,
official or other instrumentality of the United States, any foreign country or
any domestic or foreign state, county, city or other political subdivision (a
"GOVERNMENTAL OR REGULATORY AUTHORITY") applicable to the Company or any of its
subsidiaries or any of their respective assets or properties, or (iii) any note,
bond, mortgage, security agreement, indenture, license, franchise, permit,
concession, contract, lease or other instrument, obligation or agreement of any
kind (together, "CONTRACTS") to which the Company or any of its subsidiaries is
a party or by which the Company or any of its subsidiaries or any of their
respective assets or properties are bound, other than customary provisions
prohibiting or restricting assignment of contracts.

         (b) Except for the filing of (i) the certificate of formation relating
to the formation of Subsidiary LLC and, to the extent required, a certificate of
amendment relating to each of LLC Newco and the Company, (ii) the approval of
the Enron Settlement Agreement by the Bankruptcy Court and the Enron Bankruptcy
Court and (iii) the approval of the Plan and the related disclosure statement
(the "DISCLOSURE STATEMENT"), and the debtor in possession financing
contemplated by the Bankruptcy Case, including the DIP Financings, by the
Bankruptcy Court, no consent, approval or action of, filing with or notice to
any Governmental or Regulatory Authority or other public or private third party
is necessary, or required under any of the terms, conditions or provisions of
any Law or Order of any Governmental or Regulatory Authority or any Contract to
which the Company or any of its subsidiaries is a party or by which the Company
or any of its subsidiaries or any of their respective assets or properties is
bound, for the execution and delivery of this Agreement by the Company, the
performance by the Company of its obligations hereunder or the consummation of
the transactions contemplated hereby.

         (c) The Company is in material compliance with all applicable Laws and
Orders of any Governmental or Regulatory Authority in all jurisdictions in which
it is presently doing business.

         SECTION 2.5 LEGAL PROCEEDINGS. Except as disclosed in the reports filed
with the Company SEC Documents (as defined in Section 2.6(a)) on the date of
this Agreement, (i) there are no actions, suits, arbitrations or proceedings
pending or, to the knowledge of the Company, threatened against, relating to or
affecting, nor to the knowledge of the Company are there any Governmental or
Regulatory Authority investigations or audits pending or threatened against,
relating to or affecting the Company or any of its subsidiaries or any of their
respective assets

                                       9
<PAGE>

and properties which would be material and (ii) neither the Company nor any of
its subsidiaries is subject to any order of any Governmental or Regulatory
Authority with respect to the transactions contemplated by this Agreement which
would be material.

         SECTION 2.6 INFORMATION SUPPLIED; COMPANY REPORTS. (a) Since December
31, 2001, the Company has filed all reports, forms, statements and other
documents (collectively, together with all financial statements included or
incorporated by reference therein, the "COMPANY SEC DOCUMENTS") required to be
filed by the Company with the Securities and Exchange Commission (the "SEC")
pursuant to the provisions of the Securities Act of 1933, as amended (the
"SECURITIES ACT"), or the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT"). Except as described in such reports, each of the Company SEC
Documents, as of its filing date, complied in all material respects with the
applicable requirements of the Securities Act and the Exchange Act. None of the
Company SEC Documents, as of their respective filing dates, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.

         (b) Each of the consolidated financial statements (including related
notes) included in the Company SEC Documents presented fairly in all material
respects the consolidated financial condition, cash flows and results of
operations of the Company and its subsidiaries for the respective periods or as
of the respective dates set forth therein. Each of the financial statements
(including related notes) included in the Company SEC Documents has been
prepared in accordance with United States generally accepted accounting
principles ("GAAP"), consistently applied during the periods involved, except
(i) as noted therein, (ii) to the extent required by changes in GAAP or (iii) in
the case of unaudited financial statements, normal recurring year-end audit
adjustments and as permitted by Form 10-Q of the SEC.

         (c) The information, reports and financial statements furnished in
writing by or on behalf of the Company to Enron, Standard Chartered, SCTSC,
Lehman, or any Holder in connection with the negotiation, preparation or
delivery of this Agreement and the Enron Settlement Agreement or included herein
or therein or delivered pursuant hereto or thereto, whether prior to or on the
date of confirmation of the Plan (the "CONFIRMATION DATE"), when taken as a
whole, do not, as of the date such information was furnished, contain any untrue
statement of material fact or omit to state a material fact necessary in order
to make the statements herein or therein, in light of the circumstances under
which they were made, not materially misleading. The projections and pro forma
financial information furnished by the Company to any other parties to this
Agreement in connection with the transactions contemplated by this Agreement
have been prepared in good faith based on assumptions believed by the Company to
be reasonable at the time made, it being recognized by Enron, Standard
Chartered, SCTSC, Lehman and the Holders that such financial information as it
relates to future events is not to be viewed as fact and that actual results
during the period or periods covered by such financial information may differ
from the projected results set forth therein by a material amount and the
Company makes no representation as to its ability to achieve the results set
forth in any such projections. The Company understands that all such statements,
representations and warranties shall be deemed to have been relied upon by the
other parties to

                                       10
<PAGE>

this Agreement as a material inducement to enter into this Agreement and the
transactions contemplated thereby.

                                  ARTICLE III.
                  REPRESENTATIONS AND WARRANTIES OF THE HOLDERS
                   STANDARD CHARTERED, SCTSC, LEHMAN AND ENRON

         Each Holder, Standard Chartered, SCTSC, Lehman and Enron, severally and
for itself only, represents and warrants to the Company with respect to such
person as of the date hereof:

         SECTION 3.1 ORGANIZATION AND QUALIFICATION. It is an entity duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization and has full power and authority to conduct its
business as and to the extent now conducted and to own, use and lease its assets
and properties.

         SECTION 3.2 AUTHORITY RELATIVE TO THIS AGREEMENT. Subject in the case
of Enron, to approval by the Enron Bankruptcy Court, each has full power and
authority to enter into this Agreement, to perform its obligations hereunder and
to consummate the transactions contemplated hereby. The execution, delivery and
performance of this Agreement by it and the consummation of the transactions
contemplated hereby have been duly and validly approved by it, and no other
proceedings on its part or the part of its stockholders, partners, directors,
trustees, members or other similar constituents, as the case may be, are
necessary to authorize the execution, delivery and performance of this Agreement
by it and the consummation by it of the transactions contemplated hereby other
than, in the case of Enron, approval by the Enron Bankruptcy Court. This
Agreement has been duly and validly executed and delivered by it and constitutes
its legal, valid and binding obligation enforceable against it in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors' rights generally and by general equitable principles
(regardless of whether such enforceability is considered in a proceeding in
equity or at law) other than, in the case of Enron, approval by the Enron
Bankruptcy Court.

         SECTION 3.3 ADEQUATE DISCLOSURE. The Company has responded to all
requests for information about the Company made by each of the Holders, Standard
Chartered, SCTSC, Lehman and Enron and their advisors.

         SECTION 3.4 OWNERSHIP OF OLD NOTES. Each of the Holders represents that
it owns and has the ability to vote Old Notes aggregating at least the amount
set forth below its signature line to this Agreement.

                                       11
<PAGE>
                                  ARTICLE IV.
                            COVENANTS OF THE COMPANY

         SECTION 4.1 CONDUCT OF BUSINESS. Except as contemplated or permitted by
this Agreement and the Plan, between the date hereof and the Confirmation Date,
the Company and its subsidiaries shall conduct business only in the ordinary
course and subject to any limitations imposed by the Bankruptcy Code, the
Bankruptcy Court and the U.S. Trustee's office with oversight over the Company's
Bankruptcy Case, unless otherwise approved by an order of the Bankruptcy Court.

         SECTION 4.2 ISSUANCE OF SECURITIES. Between the date hereof and the
Confirmation Date, the Company shall not issue or agree to issue any securities
of the Company or enter into any Unit-Related Agreements other than Old Units
issued pursuant to Company options outstanding as of the date hereof.

         SECTION 4.3 APPOINTMENT OF COMMITTEES. The Company shall request that
the U.S. Trustee appoint only one committee of creditors in connection with the
Bankruptcy Case, to consist of not more than seven members, and the Company
shall request and support the appointment of the Holders to that committee. The
Company shall not support the appointment of any committee of Old Unit or other
equity interest holders in connection with the Bankruptcy Case.

         SECTION 4.4 BEST EFFORTS. The Company shall cooperate with the other
parties to this Agreement and use its best efforts to take, and cause to be
taken, all appropriate action, and do, or cause to be done, and assist and
cooperate with the other parties in doing, all things necessary, proper and
advisable in seeking approval of the DIP Financings, first day motions and the
Disclosure Statement, and confirmation of the Plan by the Bankruptcy Court in
the most expeditious manner practicable, including, without limitation, to cause
or cause to be made, all filings, necessary, proper or advisable under
applicable laws to consummate and make effective the transactions contemplated
by this Agreement.

         SECTION 4.5 INVESTIGATION OF PRE-PETITION AGREEMENTS. In accordance
with the provisions of the interim and final orders approving the DIP
Financings, which shall govern in all respects, in no event shall there be paid
an aggregate amount in excess of $75,000 from proceeds of the DIP Financings for
any fees and expenses incurred or allowed by the Bankruptcy Court in analyzing
or investigating the liens or claims of Standard Chartered or SCTSC. Nothing
contained in this Agreement shall affect or limit the right of Standard
Chartered or SCTSC to object to any requests for fees or fee applications filed
with the Bankruptcy Court.

         SECTION 4.6 CONSULTATION. The Company shall consult with the Holders,
Standard Chartered, SCTSC, Lehman and Enron concerning any amendments or
modifications to the Plan and the Disclosure Statement before filing or serving
any such amendments or modifications in the Bankruptcy Case.

         SECTION 4.7 PRESS RELEASE. The Company will not disclose the names of
the Holders in any press release made by the Company.

                                       12
<PAGE>

                                   ARTICLE V.
                              ADDITIONAL AGREEMENTS

         SECTION 5.1 EXPENSES. Whether or not the Plan is confirmed, except for
(i) the reasonable out-of-pocket expenses incurred by the Holders in connection
with the negotiation, execution and implementation of this Agreement, which the
Company hereby agrees to reimburse to the Holders, (ii) fees payable to Petrie
Parkman & Co. and the reasonable fees, expenses and disbursements of Fulbright &
Jaworski L.L.P., counsel for the Holders, which the Company has previously
agreed to pay, and hereby confirms that it will pay, and (iii) without limiting
the provisions of the Credit Agreement or the DIP Financings, the reasonable
out-of-pocket expenses incurred by Standard Chartered and SCTSC, including the
reasonable fees, expenses and disbursements of counsel, financial advisors and
other advisors, in connection with the negotiation, execution and implementation
of this Agreement and all transactions contemplated hereby, which the Company
hereby confirms that it will pay, all other costs incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such cost or expense.

                                  ARTICLE VI.
                        TERMINATION, AMENDMENT AND WAIVER

         SECTION 6.1 TERMINATION. In addition to the other terms and provisions
of this Agreement, this Agreement may be terminated, and the transactions
contemplated hereby may be abandoned:

         (a) By mutual written agreement of all of the parties hereto.

         (b) By any of the Company, Standard Chartered, SCTSC, Lehman, or any of
the Holders (but only as to the rights and obligations of such Holder hereunder)
upon written notification to the non-terminating party or parties by the
terminating party or parties:

                  (i) if any of the representations set forth in this agreement
                  shall be materially untrue or if there has been a subsequent
                  material breach of the representations, warranties, covenants
                  or agreements on the part of the Company set forth in this
                  Agreement;

                  (ii) if the Bankruptcy Court enters an order denying
                  confirmation of the Plan and such order shall have become
                  final and non-appealable;

                  (iii) upon the election by the Board of Directors of the
                  Company's general partner, Standard Chartered, SCTSC, Lehman
                  and the Holders to pursue or accept a bona fide offer for the
                  purchase of all or substantially all of the assets of the
                  Company, the merger or consolidation of the Company with or
                  into any other company or any transaction to restructure the
                  Company's indebtedness (collectively, an "ALTERNATIVE
                  TRANSACTION");

                                       13
<PAGE>
                  (iv) if the Company, Standard Chartered, SCTSC, Lehman, or any
                  of the Holders determines in its good faith judgment that (x)
                  an Alternative Transaction is more favorable and (y) there is
                  a risk that failure to pursue such Alternative Transaction
                  would violate its fiduciary duties;

                  (v) upon an occurrence of whatever nature that results in the
                  material impairment of the ability of (x) the Company to
                  perform its material obligations under the Plan or (y) the
                  other parties to realize the material benefits intended to be
                  provided to such parties under the Plan;

                  (vi) if at any time Standard Chartered, SCTSC, Enron, Lehman
                  or any of the Holders validly terminates this Agreement
                  pursuant to this Section 6.1; or

                  (vii) if the Disclosure Statement contains any material
                  information that has not been previously provided to the
                  terminating party, or any information that is materially
                  different from that information previously provided to the
                  terminating party that would have caused the terminating party
                  not to enter into this Agreement.

         (c) By Standard Chartered, SCTSC or Lehman upon written notification to
the non-terminating parties prior to the Confirmation Date, if:

                  (i) the form and substance of the orders approving the Plan,
                  the Disclosure Statement, the DIP Financings or the terms of
                  the New Credit Facility and all other documents related
                  thereto are not reasonably acceptable to Standard Chartered,
                  SCTSC or Lehman, or if there has been any default under the
                  DIP Financings or any related documents;

                  (ii) if there has been a material breach of the
                  representations, warranties, covenants or agreements on the
                  part of (x) any EOTT Party in any Settlement Document, or (y)
                  by any other party to this Agreement, if such breach results
                  in a material impairment of Standard Chartered's ability to
                  realize the material benefits intended to be provided to
                  Standard Chartered under the Plan or this Agreement; or

                  (iii) the Company shall support the appointment of any
                  committee of Old Unit or other equity interest holders in
                  connection with the Bankruptcy Case.

         (d) By Enron upon written notification to the non-terminating parties
prior to the Confirmation Date:

                  (i) if there has been a material breach of the
                  representations, warranties, covenants or agreements on the
                  part of (x) the Company set forth in this Agreement or by any
                  EOTT Party in any Settlement Document, or (y) by any other
                  party to this Agreement if such breach results in a material
                  impairment of Enron's ability to realize the material benefits
                  intended to be provided to Enron under the Plan or the Enron
                  Settlement Agreement;

                                       14
<PAGE>
                  (ii) if the Enron Bankruptcy Court or the Bankruptcy Court
                  does not issue a final order approving the Enron Settlement
                  Agreement on or before the 90th day following the execution of
                  this Agreement, or if the order approving the Enron Settlement
                  Agreement is vacated or amended by the Enron Bankruptcy Court
                  or the Bankruptcy Court;

                  (iii) if the Company fails to pay when due any amount required
                  to be paid under the Enron Settlement Agreement; or

                  (iv) if the Company, without the consent of Enron, makes any
                  amendments or modifications (x) to the Plan (including the
                  exhibits attached thereto), or (y) to any of the exhibits to
                  this Agreement which, in either case, materially adversely
                  affects the rights of any Enron Party under the Enron
                  Settlement Agreement, or if the Company withdraws or revokes
                  the Plan.

         (e) By Enron, Standard Chartered, SCTSC, Lehman or any Holder (but only
as to the rights and obligations of such Holder hereunder), upon written
notification to the non-terminating parties prior to the Confirmation Date, if:

                  (i) either (x) the Bankruptcy Court or the Enron Bankruptcy
                  Court does not approve the Enron Settlement Agreement as
                  contemplated in the Enron Settlement Agreement by the
                  Confirmation Date, or (y) either the Bankruptcy Court or the
                  Enron Bankruptcy Court enter an order affirmatively deciding
                  not to approve the Enron Settlement Agreement;

                  (ii) the Company, without the consent of the terminating
                  party, makes any material amendments or modifications (x) to
                  the Plan (including the exhibits attached thereto), or (y) to
                  any of the exhibits to this Agreement, which, in either case,
                  adversely affects such terminating party, or if the Company
                  withdraws or revokes the Plan;

                  (iii) the Bankruptcy Case is not filed in the Bankruptcy Court
                  within three business days following the date of this
                  Agreement;

                  (iv) an order is entered (x) dismissing the Bankruptcy Case or
                  any one of them and such order is not stayed within 10 days
                  thereof, (y) converting the Bankruptcy Case to a case under
                  Chapter 7 of the Bankruptcy Code, or (z) appointing an
                  examiner with expanded powers or a trustee to operate all or
                  any material part of the Company's business and such order is
                  not stayed within 10 days thereof;

                  (v) an order approving the DIP Financings shall not have been
                  entered on or before noon, central time, on October 18, 2002
                  or final approval of the DIP Financings is not obtained within
                  30 days following the filing of the Bankruptcy Case;

                  (vi) the Company shall not have filed the Plan on or before
                  the fifth business day following the execution of this
                  Agreement;

                                       15
<PAGE>

                  (vii) the Bankruptcy Court has not approved the Disclosure
                  Statement filed as part of the Bankruptcy Case on or before
                  January 10, 2003;

                  (viii) the Company shall not have commenced solicitation of
                  votes on the Plan by February 28, 2003;

                  (ix) the Confirmation Date does not occur on or before March
                  17, 2003; or

                  (x) the Closing of the transactions contemplated by the Plan
                  does not occur on or before March 31, 2003.

         SECTION 6.2 EFFECT OF TERMINATION. If this Agreement is validly
terminated by any party hereto pursuant to Section 6.1, this Agreement will
forthwith become null and void as to such terminating party, and there will be
no liability or obligation on the part of the terminating party; provided,
however, that the provisions of Section 5.1 and this Section 6.2 will continue
to apply following any such termination.

         SECTION 6.3 AMENDMENT. This Agreement may be amended, supplemented or
modified by a written agreement executed by or on behalf of the Company,
Standard Chartered, SCTSC, Lehman and all of the Holders; provided that no
amendment, supplement or modification of this Agreement which materially
adversely affects the rights of Enron and the Enron Parties (as defined in the
Enron Settlement Agreement) in the Enron Settlement Agreement shall be effective
unless consented to in writing by Enron. No such amendment, supplement or
modification shall be effective unless set forth in a written instrument duly
executed by or on behalf of the party sought to be bound.

         SECTION 6.4 WAIVER. The Company, Standard Chartered, SCTSC, Lehman and
all of the Holders may, to the extent permitted by applicable law, (i) extend
the time for the performance of any of the obligations or other acts of the
other hereto, (ii) waive any inaccuracies in the representations and warranties
of the other contained herein or in any document delivered pursuant hereto or
(iii) waive compliance with any of the covenants, agreements or conditions of
the other contained herein; provided, however, that the requirement (x) to
support approval by the Bankruptcy Court of the Enron Settlement Agreement
contained in Article I above, and (y) that the Company shall make all payments
required by the Enron Settlement Agreement, may be waived only by Enron in
writing. No such extension or waiver shall be effective unless set forth in a
written instrument duly executed by or on behalf of the party extending the time
of performance or waiving any such inaccuracy or non-compliance. No waiver by
any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any
other term or condition of this Agreement on any future occasion.

                                       16
<PAGE>

                                  ARTICLE VII.
                               GENERAL PROVISIONS

         SECTION 7.1 NON-SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND
AGREEMENTS. The representations, warranties, covenants and agreements contained
in this Agreement or in any instrument delivered pursuant to this Agreement
shall not survive the confirmation of the Plan, except for the agreements
contained in Section 5.1, this Article VII and the Enron Settlement Agreement,
which shall survive the confirmation of the Plan.

         SECTION 7.2 NOTICES. All notices, requests and other communications
hereunder must be in writing and will be deemed to have been duly given only if
delivered personally, by facsimile transmission or by overnight courier to the
parties at the following addresses or facsimile numbers:

                  If to the Holders, to:

                  Lehman Brothers Inc.
                  600 Travis, Suite 7330
                  Houston, TX  77002
                  Facsimile No.:  (713) 236-3912
                  Attn:  J. Robert Chambers

                  Dreyfus High Yield Strategies Fund
                  Dreyfus Premier Fixed Income Funds:  Dreyfus Premier High
                  Yield Securities Fund
                  The Dreyfus/Laurel Funds Trust:  Dreyfus Premier Limited Term
                  High Income Fund
                  Dreyfus Fixed Income Securities:  Dreyfus High Yield Shares
                  Dreyfus Variable Investment Fund:  Limited Term High Income
                  Portfolio

                  c/o The Dreyfus Corporation
                  200 Park Avenue
                  New York, NY  10166
                  Facsimile No.:  (212) 922-7201
                  Attn.:  Keith Chan

                  The Northwestern Mutual Life Insurance Company
                  720 East Wisconsin Avenue
                  Milwaukee, WI  53202
                  Facsimile No.:  (414) 625-2646
                  Attn.:  Steve Tallmadge

                                       17
<PAGE>

                  American Express Financial Corporation
                  25617 AXP Financial Center
                  Minneapolis, MN  55474
                  Facsimile No.:  (612) 547-2694
                   Attn.:  Mark Van Holland

                  Farallon Capital Management, LLC
                  One Maritime Plaza, Suite 1325
                  San Francisco, CA 94111
                  Facsimile No.:  (415) 421-2133
                  Attn.:  Derek Schrier

                  with a copy to:

                  Fulbright & Jaworski LLP
                  1301 McKinney, Suite 5100
                  Houston, Texas 77010-3095
                  Facsimile No.:  (713) 651-5246
                  Attn.:  Evelyn H. Biery

                  If to Lehman:

                  Lehman Commercial Paper Inc.
                  600 Travis Street, Suite 7330
                  Houston, Texas  77002
                  Facsimile No.:  (713) 236-3912
                  Attn.:  J. Robert Chambers

                  If to Standard Chartered or SCTSC:

                  Standard Chartered Bank
                  One Madison Avenue
                  New York, New York  10010
                  Facsimile No.:  (212) 667-0797
                  Attn.:  Neil McCauley

                  Standard Chartered Trade Services Corporation
                  One Madison Avenue
                  New York, New York  10010
                  Facsimile No.:  (212) 667-0797
                  Attn.:  Neil McCauley

                                       18
<PAGE>
                  with a copy to:

                  Lovells
                  900 Third Avenue
                  New York, New York  10022
                  Facsimile No.:  (212) 909-0666
                  Attn.:  Gary Lee and Karen Ostad

                  and

                  Bingham McCutchen LLP
                  399 Park Avenue
                  New York, New York 10022
                  Facsimile No.  (212) 752-5378
                  Attn.:  Tina L. Brozman and Frederick F. Eisenbiegler

                  If to Enron:

                  Enron Corp.
                  1400 Smith Street
                  Houston, Texas  77002
                  Facsimile No.:  (713) 646-6227
                  Attn.:  General Counsel

                  with a copy to:

                  Weil, Gotshal & Manges LLP
                  700 Louisiana, Suite 1600
                  Houston, Texas  77002
                  Facsimile No.:  (713) 224-9511
                  Attn.:  Charles E. Harrell

                  If to the Company, to:

                  EOTT Energy Partners, L.P.
                  2000 West Sam Houston Pkwy South, Suite 400
                  Houston, TX 77042
                  Facsimile No.:  (713) 993-5813
                  Attn:  Molly Sample

                                       19
<PAGE>
                  with a copy to:

                  Haynes and Boone, LLP
                  901 Main Street, Suite 3100
                  Dallas, TX 75202-3789
                  Facsimile No.:  (214) 651-5940
                  Attn:  Robert D. Albergotti

All such notices, requests and other communications will (i) if delivered
personally to the address as provided in this Section 7.2, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as
provided in this Section 7.2, be deemed given upon confirmed receipt, and (iii)
if delivered by overnight courier in the manner described above to the address
as provided in this Section 7.2, be deemed given upon receipt (in each case
regardless of whether such notice, request or other communication is received by
any other person to whom a copy of such notice, request or other communication
is to be delivered pursuant to this Section 7.2). Any party from time to time
may change its address, facsimile number or other information for the purpose of
notices to that party by giving notice specifying such change to the other
parties hereto.

         SECTION 7.3 ENTIRE AGREEMENT; INCORPORATION OF EXHIBITS. (a) This
Agreement supersedes all prior discussions and agreements among the parties
hereto with respect to the subject matter hereof and contains the sole and
entire agreement among the parties hereto with respect to the subject matter
hereof.

         (b) Any Exhibit attached to this Agreement and referred to herein is
hereby incorporated herein and made a part hereof for all purposes as if fully
set forth herein.

         SECTION 7.4 INDIVIDUAL LIABILITY. The past, present and future
trustees, shareholders, directors, officers, employees or agents of each Holder
(as applicable) shall not be individually bound or liable for the matters set
forth in this Agreement.

         SECTION 7.5 PUBLIC ANNOUNCEMENTS. Except as otherwise required by law
or the rules of any applicable securities exchange or national market system, so
long as this Agreement is in effect, the parties will not, and will not permit
any of their respective representatives to, issue or cause the publication of
any press release or make any other public announcement with respect to the
transactions contemplated by this Agreement without the consent of the other
parties, which consent shall not be unreasonably withheld. The parties will
cooperate with each other in the development and distribution of all press
releases and other public announcements with respect to this Agreement and the
transactions contemplated hereby, and will provide each other with drafts of any
press releases and announcements as far in advance as is practicable and permit
the other parties to comment thereon and be advised when such release will be
issued. The parties are expressly authorized to describe this Agreement and/or
attach copies of this Agreement to the motions or pleadings filed in the
Bankruptcy Court and the Enron Bankruptcy Court.

                                       20
<PAGE>

         SECTION 7.6 NO THIRD PARTY BENEFICIARIES. The terms and provisions of
this Agreement are intended solely for the benefit of each party hereto and
their respective successors or permitted assigns and, in the case of Enron, the
Enron Parties, and it is not the intention of the parties to confer third-party
beneficiary rights upon any other person.

         SECTION 7.7 NO ASSIGNMENT; BINDING EFFECT. Except as expressly provided
in this paragraph or in Section 1.2(c), neither this Agreement nor any right,
interest or obligation hereunder may be assigned by any party hereto without the
prior written consent of the other parties hereto and any attempt to do so will
be void. Subject to the previous sentence, this Agreement inures to the benefit
of and is enforceable by the parties hereto and their respective successors and
assigns.

         SECTION 7.8 HEADINGS. The headings used in this Agreement have been
inserted for convenience of reference only and do not define, modify or limit
the provisions hereof.

         SECTION 7.9 INVALID PROVISIONS. If any provision of this Agreement is
held to be illegal, invalid or unenforceable under any present or future law or
order, and if the rights or obligations of any party hereto under this Agreement
will not be materially and adversely affected thereby, (i) such provision will
be fully severable, (ii) this Agreement will be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part
hereof, and (iii) the remaining provisions of this Agreement will remain in full
force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom.

         SECTION 7.10 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to a
contract executed and performed in such State, without giving effect to the
conflicts of laws principles thereof. The parties consent to the non-exclusive
jurisdiction of the federal and state courts in Manhattan, New York for the
adjudication of any dispute with respect to this Agreement.

         SECTION 7.11 ENFORCEMENT OF AGREEMENT. The parties hereto agree that
irreparable damage would occur in the event that any provision of this Agreement
was not performed in accordance with its specified terms or was otherwise
breached. It is accordingly agreed that any party not in breach shall be
entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions hereof in any court of
competent jurisdiction, this being in addition to any other remedy to which they
are entitled at law or in equity.

         SECTION 7.12 COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

         SECTION 7.13 EFFECTIVENESS OF AGREEMENT. This Agreement will not become
effective until all parties named on the signature pages of this Agreement have
executed and delivered this Agreement.

                                       21
<PAGE>
                            [SIGNATURE PAGES FOLLOW]

                                       22
<PAGE>
     IN WITNESS WHEREOF, each party hereto has caused this Agreement to be
signed by its officer thereunto duly authorized as of the date first above
written.

                                    LEHMAN BROTHERS INC.

                                    By:    /s/ J. Robert Chambers
                                           --------------------------------
                                    Name:  J. Robert Chambers
                                           --------------------------------
                                    Title: Managing Director
                                           --------------------------------
                                    Principal Amount of Notes: $41,535,000
                                                               -----------

<PAGE>
        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER ___, 2002

                                    DREYFUS HIGH YIELD STRATEGIES FUND

                                    By:    /s/ Gerald E. Thunelius
                                           -------------------------------------
                                    Name:  Gerald E. Thunelius
                                           -------------------------------------
                                    Title: Director of Taxable Fixed Income
                                           -------------------------------------
                                    Principal Amount of Notes $6,746,000
                                                             -----------

<PAGE>
        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER ___, 2002

                                    DREYFUS PREMIER FIXED INCOME FUNDS:
                                    DREYFUS PREMIER HIGH YIELD SECURITIES FUND

                                    By:    /s/ Gerald E. Thunelius
                                           -------------------------------------
                                    Name:  Gerald E. Thunelius
                                           -------------------------------------
                                    Title: Director of Taxable Fixed Income
                                           -------------------------------------
                                    Principal Amount of Notes $775,000
                                                             ---------

<PAGE>
        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER ___, 2002

                                    THE DREYFUS/LAUREL FUNDS TRUST:
                                    DREYFUS PREMIER LIMITED TERM HIGH
                                    INCOME FUND

                                    By:    /s/ Gerald E. Thunelius
                                           -------------------------------------
                                    Name:  Gerald E. Thunelius
                                           -------------------------------------
                                    Title: Director of Taxable Fixed Income
                                           -------------------------------------
                                    Principal Amount of Notes $5,925,000
                                                             -----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER ___, 2002

                                    DREYFUS FIXED INCOME SECURITIES:
                                    HIGH YIELD SHARES

                                    By:    /s/ Gerald E. Thunelius
                                           -------------------------------------
                                    Name:  Gerald E. Thunelius
                                           -------------------------------------
                                    Title: Director of Taxable Fixed Income
                                           -------------------------------------
                                    Principal Amount of Notes $555,000
                                                             ---------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER ___, 2002

                                    DREYFUS VARIABLE INVESTMENT FUND:
                                    LIMITED TERM HIGH INCOME PORTFOLIO

                                    By:    /s/ Gerald E. Thunelius
                                           -------------------------------------
                                    Name:  Gerald E. Thunelius
                                           -------------------------------------
                                    Title: Director of Taxable Fixed Income
                                           -------------------------------------
                                    Principal Amount of Notes $50,000
                                                             --------

<PAGE>

                                    THE NORTHWESTERN MUTUAL LIFE INSURANCE
                                      COMPANY

                                    By:    /s/ Timothy S. Collins
                                           -------------------------------------
                                    Name:  Timothy S. Collins
                                           -------------------------------------
                                    Title: Its Authorized Representative
                                           -------------------------------------
                                    Principal Amount of Notes $15,750,000
                                                             ------------

<PAGE>

                                    HIGH YIELD PORTFOLIO, A SERIES OF
                                    INCOME TRUST

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Assistant Vice President
                                           -------------------------------------
                                           Income Trust
                                           -------------------------------------
                                    Principal Amount of Notes $21,125,000.00
                                                             ---------------

                                    TOTAL RETURN PORTFOLIO, A SERIES OF
                                    GROWTH AND INCOME TRUST

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Assistant Vice President
                                           -------------------------------------
                                           Growth and Income Trust
                                           -------------------------------------
                                    Principal Amount of Notes $300,000.00
                                                             ------------

                                    AXP VARIABLE PORTFOLIO - MANAGED
                                    FUND, A SERIES OF AXP VARIABLE
                                    PORTFOLIO MANAGED SERIES, INC.

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Assistant Vice President
                                           -------------------------------------
                                           AXP Variable Portfolio Managed
                                           -------------------------------------
                                           Series, Inc.
                                           -------------------------------------
                                    Principal Amount of Notes $500,000.00
                                                             ------------

                                    INCOME PORTFOLIO, A SERIES OF IDS LIFE
                                    SERIES FUND, INC.

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Assistant Vice President
                                           -------------------------------------
                                           IDS Life Series Fund, Inc.
                                           -------------------------------------
                                    Principal Amount of Notes $100,000.00
                                                             ------------

<PAGE>
                                    MANAGED PORTFOLIO, A SERIES OF IDS
                                    LIFE SERIES FUND, INC.

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Assistant Vice President
                                           -------------------------------------
                                           IDS Life Series Fund, Inc.
                                           -------------------------------------
                                    Principal Amount of Notes $100,000.00
                                                              -----------

                                    AXP VARIABLE PORTFOLIO - EXTRA
                                    INCOME FUND, A SERIES OF AXP VARIABLE
                                    PORTFOLIO INCOME SERIES, INC.

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Assistant Vice President
                                           -------------------------------------
                                           AXP Variable Portfolio Income
                                           -------------------------------------
                                           Series, Inc.
                                           -------------------------------------
                                    Principal Amount of Notes $5,760,000.00
                                                             --------------

                                    CALHOUN CBO, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,000,000.00
                                                             --------------

<PAGE>
                                    ISLES CBO, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,000,000.00
                                                             --------------

                                    AMERICAN EXPRESS RETIREMENT PLAN -
                                    HIGH YIELD FIXED INCOME

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $150,000.00
                                                             ------------

                                    CEDAR CBO, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,000,000.00
                                                             --------------

<PAGE>
                                    CENTENNIAL CBO, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,000,000.00
                                                             --------------

                                    CENTURION CDO IV, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,500,000.00
                                                             --------------

                                    CENTURION CDO I, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,000,000.00
                                                             --------------

<PAGE>
                                    CENTURION CDO II, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $660,000.00
                                                             ------------

                                    CENTURION CDO III, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                           -------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $880,000.00
                                                             ------------

                                    CENTURION CDO III, LIMITED - PREFERRED
                                    SHARES ACCOUNT

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Bruce Lamo
                                           -------------------------------------
                                    Name:  Bruce Lamo
                                          --------------------------------------
                                    Title: Senior Vice President - Chief
                                           -------------------------------------
                                           Operating Officer, Alternative
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $500,000.00
                                                             ------------

<PAGE>
                                    CLARION CBO, LIMITED

                                    By: American Express Asset Management
                                        Group, Inc., its authorized signatory

                                    By:    /s/ Lorraine R. Hart
                                           -------------------------------------
                                    Name:  Lorraine R. Hart
                                           -------------------------------------
                                    Title: Vice President - Insurance
                                           -------------------------------------
                                           Investments
                                           -------------------------------------
                                    Principal Amount of Notes $1,500,000.00
                                                             --------------

<PAGE>
                               FARALLON CAPITAL PARTNERS, L.P.,
                               a California limited partnership

                               By: Farallon Partners, L.L.C.,
                                   as General Partner

                               By:    /s/ William F. Mellin
                                      ------------------------------------------
                               Name:  William F. Mellin
                                      ------------------------------------------
                               Title: Managing Member, Farallon Partners, L.L.C.
                                      ------------------------------------------
                               Principal Amount of Notes: $5,010,000.00
                                                         --------------

<PAGE>

                              FARALLON CAPITAL INSTITUTIONAL PARTNERS, L.P.,
                              a California limited partnership

                              By: Farallon Partners, L.L.C., as General Partner

                              By:    /s/ William F. Mellin
                                     -------------------------------------------
                              Name:  William F. Mellin
                                     -------------------------------------------
                              Title: Managing Member, Farallon Partners, L.L.C.
                                     -------------------------------------------
                              Principal Amount of Notes: $6,140,000.00
                                                        --------------

<PAGE>
                              FARALLON CAPITAL INSTITUTIONAL PARTNERS II, L.P.,
                              a California limited partnership

                              By: Farallon Partners, L.L.C., as General Partner

                              By:    /s/ William F. Mellin
                                     -------------------------------------------
                              Name:  William F. Mellin
                                     -------------------------------------------
                              Title: Managing Member, Farallon Partners, L.L.C.
                                     -------------------------------------------
                              Principal Amount of Notes: $780,000.00
                                                         -----------

<PAGE>

                              FARALLON CAPITAL INSTITUTIONAL PARTNERS III, L.P.,
                              a Delaware limited partnership

                              By: Farallon Partners, L.L.C., as General Partner

                              By:    /s/ William F. Mellin
                                     -------------------------------------------
                              Name:  William F. Mellin
                                     -------------------------------------------
                              Title: Managing Member, Farallon Partners, L.L.C.
                                     -------------------------------------------
                              Principal Amount of Notes: $740,000.00
                                                         -----------

<PAGE>

                              TINICUM PARTNERS, L.P.,
                              a New York limited partnership

                              By: Farallon Partners, L.L.C., as General Partner

                              By:    /s/ William F. Mellin
                                     -------------------------------------------
                              Name:  William F. Mellin
                                     -------------------------------------------
                              Title: Managing Member, Farallon Partners, L.L.C.
                                     -------------------------------------------
                              Principal Amount of Notes: $250,000.00
                                                        ------------

<PAGE>

                                    FARALLON CAPITAL OFFSHORE INVESTORS, INC.,
                                    a British Virgin Island company

                                    By: Farallon Capital Management, L.L.C.,
                                        its agent and attorney-in-fact

                                    By:    /s/ William F. Mellin
                                           -------------------------------------
                                    Name:  William F. Mellin
                                           -------------------------------------
                                    Title: Managing Member, Farallon Capital
                                           -------------------------------------
                                           Management, L.L.C.
                                           -------------------------------------
                                    Principal Amount of Notes: $11,035,000.00
                                                              ---------------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    PRUDENTIAL HIGH YIELD FUND, INC.

                                    By: Prudential Investment Management, Inc.
                                        as an investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $3,605,000.00
                                                                -------------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    THE HIGH YIELD INCOME FUND, INC.

                                    By: Prudential Investment Management, Inc.
                                        as an investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $85,000.00
                                                                ----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                  STRATEGIC PARTNERS ASSET ALLOCATION FUNDS,
                                     STRATEGIC PARTNERS MODERATE GROWTH FUND
                                     STRATEGIC PARTNERS CONSERVATIVE GROWTH FUND

                                  By: Prudential Investment Management, Inc.,
                                      as investment advisor

                                  By:    /s/ Richard Burns
                                         -------------------------------------
                                  Name:  Richard Burns
                                         -------------------------------------
                                  Title: Vice President
                                         -------------------------------------
                                  Principal Amount of Notes:
                                     Strategic Partners Moderate Growth Fund:
                                     $60,000.00
                                     Strategic Partners Conservative Growth
                                     Fund: $40,000.00

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    THE PRUDENTIAL SERIES FUND, INC.,
                                    HIGH YIELD BOND PORTFOLIO

                                    By: Prudential Investment Management, Inc.,
                                        as investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $1,580,000.00
                                                                -------------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    PRUMERICA WORLDWIDE INVESTORS PORTFOLIO:
                                    U.S. HIGH YIELD FUND

                                    By: Prudential Investment Management, Inc.
                                        as investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $240,000.00
                                                                -----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    THE PII HIGH YIELD FUND

                                    By: Prudential Investment Management, Inc.,
                                        as investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $190,000.00
                                                                -----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    PRUDENTIAL PROPERTY AND
                                    CASUALTY INSURANCE COMPANY

                                    By: Prudential Investment Management, Inc.,
                                        as investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $270,000.00
                                                                -----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    PRUCO LIFE INSURANCE COMPANY

                                    By: Prudential Investment Management, Inc.,
                                        as investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $580,000.00
                                                                -----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

                                    By: Prudential Investment Management, Inc.,
                                        as investment advisor

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $75,000.00
                                                                ----------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    DRYDEN HIGH YIELD CDO 2001-I

                                    By: Prudential Investment Management, Inc.,
                                        as collateral manager

                                    By:    /s/ Richard Burns
                                           -------------------------------------
                                    Name:  Richard Burns
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $3,000,000.00
                                                                -------------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

                                    By: Prudential Investment Management, Inc.,
                                        as investment advisor

                                    By:    /s/ Paul Appleby
                                           -------------------------------------
                                    Name:  Paul Appleby
                                           -------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Principal Amount of Notes:  $12,295,000.00
                                                                --------------

<PAGE>

                                    ENRON CORP.

                                    By:   /s/ Raymond M. Bowen, Jr.
                                          --------------------------------------
                                    Name: Raymond M. Bowen, Jr.
                                          --------------------------------------
                                    Title: Executive Vice President
                                           -------------------------------------

                                    ENRON NORTH AMERICA CORP.

                                    By:    /s/ L. Don Miller
                                           -------------------------------------
                                    Name:  L. Don Miller
                                           -------------------------------------
                                    Title: President
                                           -------------------------------------

                                    ENRON ENERGY SERVICES, INC

                                    By:    /s/ Robert  J. Semple
                                           -------------------------------------
                                    Name:  Robert J. Semple
                                           -------------------------------------
                                    Title: President
                                           -------------------------------------

                                    ENRON PIPELINE SERVICES COMPANY

                                    By:    /s/ James Saunders
                                           -------------------------------------
                                    Name:  James Saunders
                                           -------------------------------------
                                    Title: VP
                                           -------------------------------------

                                    EGP FUELS COMPANY

                                    By:    /s/ James Saunders
                                           -------------------------------------
                                    Name:  James Saunders
                                           -------------------------------------
                                    Title: VP
                                           -------------------------------------

                                    ENRON GAS LIQUIDS, INC.

                                    By:    /s/ Ed Smida
                                           -------------------------------------
                                    Name:  Ed Smida
                                           -------------------------------------
                                    Title: President
                                           -------------------------------------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                   STANDARD CHARTERED BANK plc

                                   By:    /s/ Neil McCauley
                                          -------------------------------------
                                   Name:  Neil McCauley
                                          -------------------------------------
                                   Title: Regional Head of the Americas GSM
                                          --------------------------------------

                                   STANDARD CHARTERED TRADE SERVICES CORPORATION

                                   By:    /s/ Allan J. Lee
                                          -------------------------------------
                                   Name:  Allan J. Lee
                                          -------------------------------------
                                   Title: Chief Executive Officer
                                          -------------------------------------

<PAGE>

                                    LEHMAN COMMERCIAL PAPER INC.

                                    By:    /s/ J. Robert Chambers
                                           -------------------------------------
                                    Name:  J. Robert Chamers
                                           -------------------------------------
                                    Title: Authorized Signatory
                                           -------------------------------------

<PAGE>

        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    EOTT ENERGY PARTNERS, L.P.

                                    By: EOTT Energy Corp., its general partner

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

                                    EOTT ENERGY FINANCE CORP.

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

                                    EOTT ENERGY GENERAL PARTNER, L.L.C.

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

                                    EOTT ENERGY OPERATING LIMITED PARTNERSHIP

                                    By: EOTT General Partner, L.L.C.,
                                        its general partner

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

                                    EOTT ENERGY CANADA LIMITED PARTNERSHIP

                                    By: EOTT General Partner, L.L.C.,
                                        its general partner

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

<PAGE>
        SIGNATURE PAGE TO RESTRUCTURING AGREEMENT DATED OCTOBER 7, 2002

                                    EOTT ENERGY PIPELINE LIMITED PARTNERSHIP

                                    By: EOTT General Partner, L.L.C.,
                                        its general partner

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

                                    EOTT ENERGY LIQUIDS, L.P.,

                                    By: EOTT General Partner, L.L.C.,
                                        its general partner

                                    By:    /s/ Dana R. Gibbs
                                           -------------------------------------
                                    Name:  Dana R. Gibbs
                                    Title: President and Chief Executive Officer

<PAGE>

                                    EXHIBIT A

                             PLAN OF REORGANIZATION

<PAGE>

                         UNITED STATES BANKRUPTCY COURT
                           SOUTHERN DISTRICT OF TEXAS
                             CORPUS CHRISTI DIVISION

In re:                                    )
                                          )
EOTT ENERGY PARTNERS, L.P.                )    CASE NO. _________
                                          )
EOTT ENERGY FINANCE CORP.                 )    CASE NO. _________
                                          )
EOTT ENERGY GENERAL PARTNER, LLC          )    CASE NO. _________
                                          )
EOTT ENERGY OPERATING                     )
LIMITED PARTNERSHIP                       )    CASE NO. _________
                                          )
EOTT ENERGY PIPELINE                      )
LIMITED PARTNERSHIP                       )    CASE NO. _________
                                          )
EOTT ENERGY CANADA                        )
LIMITED PARTNERSHIP                       )    CASE NO. _________
                                          )
EOTT ENERGY LIQUIDS, L.P.                 )    CASE NO. _________
                                          )
              Debtors                     )    (Jointly Administered under Case
                                          )    No._________)

------------------------------------------------------------------------------
                      JOINT CHAPTER 11 PLAN OF THE DEBTORS
------------------------------------------------------------------------------

                                                     HAYNES AND BOONE, LLP
                                                     1000 Louisiana, Suite 4300
                                                     Houston, Texas  77002
                                                     Telephone: (713) 547-2000
                                                     Facsimile: (713) 547-2688

DATED:   October 8, 2002                             ATTORNEYS FOR THE DEBTORS

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>               <C>                                                                                             <C>
INTRODUCTION      1
ARTICLE 1         Definitions and Construction of Terms...........................................................1
         1.1      Scope of Definitions............................................................................1
         1.2      Definitions.....................................................................................1
         1.3      Rules of Interpretation and Construction........................................................1
ARTICLE 2         Classification of Claims and Equity Interests; Impairment.......................................2
         2.1      Classification..................................................................................2
         2.2      Identification of Classes - EOTT................................................................2
         2.3      Identification of Classes -EOTT Finance.........................................................2
         2.4      Identification of Classes - EOTT LLC............................................................3
         2.5      Identification of Classes - EOTT OLP............................................................3
         2.6      Identification of Classes -EOTT Pipeline........................................................3
         2.7      Identification of Classes -EOTT Canada..........................................................4
         2.8      Identification of Classes -EOTT Liquids.........................................................4
         2.9      Unimpaired Classes..............................................................................4
         2.11     Impaired Classes................................................................................4
ARTICLE 3         Treatment of Administrative Claims, Professional Fee Claims, and Allowed Priority
                  Unsecured Tax Claims............................................................................5
         3.1      Administrative Claims Bar Date..................................................................5
         3.2      Professional Fee Claims Bar Date................................................................5
         3.3      Administrative Tax Claim Bar Date...............................................................5
         3.4      Payment of Administrative Claims and Professional Fee Claims....................................6
         3.5      Payment of Ordinary Course Liabilities..........................................................6
         3.6      Payment of Allowed Priority Unsecured Tax Claims................................................6
         3.7      U. S. Trustee Fees..............................................................................6
ARTICLE 4         Provisions for Treatment of Allowed Claims and Equity Interests.................................7
         4.1      Treatment of Allowed Priority Unsecured Non-Tax Claims (Classes 1A, 1B, 1C, 1D, 1E, 1F
                           and 1G)................................................................................7
         4.2      Treatment of Allowed Secured Tax Claims (Classes 2A, 2B, 2C, 2D, 2E, 2F, 2G and 2H).............7
                       4.2.1    Determination of Allowed Secured Tax Claim........................................7
                       4.2.2    Treatment of Allowed Secured Tax Claims...........................................7
                           4.2.2.1  Execution of Plan Note........................................................7
                           4.2.2.2  Transfer of Collateral........................................................8
                           4.2.2.3  Other Agreements..............................................................8
                       4.2.3    Retention of Lien.................................................................8
                       4.2.4    Deficiency Claim..................................................................8
         4.5      Treatment of Allowed Secured Claims of Enron Pipeline (Classes 3.3A, 3.3C, 3.3D, 3.3E,
                           3.3F and 3.3G).........................................................................8
         4.6      Treatment of Allowed Secured Claims of Trade Partners (Classes 3.4A, 3.4C, 3.4D, 3.4E,
                           3.4F and 3.4G).........................................................................9
         4.7      Treatment of Allowed Secured Claims of M&M Lienholders (Classes 3.5A, 3.5C, 3.5D, 3.5,
                           3.5F and 3.5G).........................................................................9
                       4.7.1    Determination of Allowed M&M Lienholder Secured Claim.............................9
</Table>

<PAGE>

<Table>
<S>               <C>                                                                                             <C>
                       4.7.2    Execution of Plan Note...........................................................10
                       4.7.3    Retention of Lien................................................................10
         4.8      Treatment of Allowed Secured Claims (Classes 3.6A, 3B, 3.6C, 3.6D, 3.6E, 3.6F and 3.6G)........10
                       4.8.1    Determination of Allowed Other Secured Claims....................................10
                       4.8.2    Treatment of Allowed Other Secured Claims........................................11
                           4.8.2.1 Execution of Plan Note........................................................11
                           4.8.2.2 Transfer of Collateral........................................................11
                           4.8.2.3 Other Agreements..............................................................11
                       4.8.3    Retention of Lien................................................................12
                       4.8.4    Deficiency Claim.................................................................12
         4.9      Treatment of Allowed Senior Note Claims (Classes 4A, 4B, 4C, 4D, 4E, 4F and 4G)................12
         4.10     Treatment of Allowed General Unsecured Claims (Classes 5.1A, 5.1B, 5.1C, 5.1D, 5.1E,
                           5.1F and 5.1G)........................................................................12
         4.11     Treatment of Allowed Convenience Claims (Class 5.2A, 5.2B, 5.2C, 5.2D, 5.2E, 5.2F and
                           5.2G).................................................................................12
         4.12     Treatment of Allowed Common Units in EOTT (Class 6.1A).........................................13
         4.14     Treatment of Allowed GP Interests (Class 6.2A), Allowed Subordinated Units (Class
                           6.3A), Allowed Additional Partnership Interests (Class 6.4A), and Allowed
                           Equity Interests in EOTT LLC (Class 6C)...............................................13
         4.15     Treatment of Equity Interests (Classes 6B, 6D, 6E, 6F and 6G)..................................13
ARTICLE 5         Executory Contracts............................................................................14
         5.1      Assumption and Rejection.......................................................................14
         5.2      Approval of Assumption or Rejection............................................................14
         5.3      Rejection Claims...............................................................................14
ARTICLE 6         Means for Implementation of the Plan...........................................................15
         6.1      Substantive Consolidation......................................................................15
         6.2      The Closing....................................................................................15
                       6.2.1    Execution of Documents and Corporate Action......................................16
                       6.2.2    Discharge of Senior Note Indenture and Cancellation of Senior Notes..............16
                       6.2.3    Execution of New Indenture and Issuance of New Notes.............................17
                       6.2.4    Amendment of EOTT LLC Agreement..................................................17
                       6.2.5    Board of Managers and Officers of EOTT LLC.......................................17
                       6.2.6    Formation of Holding LLC.........................................................18
                       6.2.7    Authorization and Issuance of New LLC Units and LLC Warrants.....................18
                       6.2.8    Authorization and Issuance of the New GP Interest and New LP Interest............18
                       6.2.9    Amendment of EOTT Partnership Agreement..........................................18
                       6.2.10   Execution and Issuance of Any Plan Notes and the Master Creditor Note............18
                       6.2.11   Amendment of the Debtors' Articles of Incorporation and By-Laws..................19
</Table>

<PAGE>
<Table>
<S>                                                                                                              <C>
                       6.2.12   Consummation of the Exit Credit Facility.........................................19
                       6.2.13   Consummation of the Enron Settlement Agreement...................................19
                       6.2.14   Surrender of Instruments.........................................................20
                       6.2.15   Establishment of Reserves and Other Accounts.....................................20
                           6.2.15.1 Establishment of Administrative Claims Reserve...............................20
                           6.2.15.2 Establishment of Priority Claims Reserve.....................................20
         6.3      Termination of the Committee...................................................................20
         6.4      Bankruptcy Code Section 1145 Determination.....................................................21
         6.5      Implementation of Management Incentive Compensation Plan.......................................21
ARTICLE 7  Rights and Obligations of the Disbursing Agent........................................................21
         7.1      Selection and Retention........................................................................21
         7.2      Duties of the Disbursing Agent.................................................................22
ARTICLE 8         General Provisions Governing Distributions.....................................................22
         8.1      In General.....................................................................................22
         8.2      Distributions on Allowed Claims and Allowed Equity Interests Only..............................22
         8.3      Place and Manner of Payments of Distributions..................................................22
         8.4      Undeliverable Distributions....................................................................23
         8.5      Treatment of Unclaimed or Undeliverable Distributions..........................................23
         8.6      Withholding....................................................................................24
         8.7      Interest.......................................................................................25
         8.8      Distributions to Holders of Senior Notes.......................................................25
                       8.8.1    Distributions....................................................................25
                       8.8.2    Record Date for Senior Notes.....................................................25
         8.9      Distributions to Class 6.1A Allowed Common Units...............................................26
ARTICLE 9         Vesting of Property............................................................................26
         9.1      Revesting of Property..........................................................................26
ARTICLE 10        Discharge, Release and Extinguishment of Liens, Claims, Interests and Encumbrances.............26
         10.1     Discharge of Debtors...........................................................................26
         10.2     Exculpation....................................................................................27
ARTICLE 11        Injunction Against Enforcement of Preconfirmation Claims and Equity Interests..................28
         11.1     Injunction Enjoining Holders of Claims Against Equity Interest in Debtors......................28
         11.2     Derivative Securities Litigation Claims........................................................28
ARTICLE 12        Events of Default..............................................................................29
         12.1     Events of Default..............................................................................29
         12.2     Remedies for Defaults..........................................................................29
ARTICLE 13        Provisions for the Resolution of Objections to Proofs of Claim.................................29
         13.1     Right to Object to Claims......................................................................29
         13.2     Deadline for Objecting to Claims...............................................................30
         13.3     Deadline for Responding to Claim Objections....................................................30
         13.4     Estimation of Claims...........................................................................30
ARTICLE 14        General Provisions Relating to Reserves........................................................30
         14.1     Administrative Claims Reserves.................................................................30
         14.2     Priority Claims Reserve........................................................................31
</Table>

<PAGE>
<Table>
<S>               <C>                                                                                             <C>
ARTICLE 15        Provisions for the Retention, Enforcement, Compromise, or Adjustment of Claims Belonging to
                  the Estate.....................................................................................31
         15.1     Right to Enforce, Compromise, or Adjust Estate Claims..........................................31
ARTICLE 16        Retention of Jurisdiction......................................................................31
         16.1     Retention of Jurisdiction......................................................................31
ARTICLE 17        General Provisions.............................................................................33
         17.1     Confirmation Order.............................................................................33
         17.2     Notices........................................................................................33
         17.3     Dates..........................................................................................33
         17.4     Further Action.................................................................................34
         17.5     Exhibits.......................................................................................34
         17.6     Exemption from Transfer Taxes..................................................................34
         17.7     Binding Effect.................................................................................34
         17.8     Governing Law..................................................................................34
         17.9     Headings.......................................................................................34
         17.10    Rounding of Amounts............................................................................35
         17.11    Withdrawal or Revocation of the Plan...........................................................35
         17.12    Reservation of Rights..........................................................................35
         17.13    Defects, Omissions, and Amendments.............................................................35
         17.14    Good Faith.....................................................................................36
ARTICLE 18        Substantial Consummation.......................................................................36
         18.1     Substantial Consummation.......................................................................36
         18.2     Final Decree...................................................................................36
ARTICLE 19        Contingencies to Effectiveness of Plan.........................................................37
         19.1     Contingencies..................................................................................37
</Table>

<PAGE>

                                EXHIBITS TO PLAN

<Table>
<S>                                                                         <C>
Glossary of Defined Terms...................................................Exhibit A
Enron Settlement Agreement and Related Documents............................Exhibit B
Term Sheet for New Indenture and New Notes..................................Exhibit C
Term Sheet for LLC Warrants.................................................Exhibit D
Term Sheet for Exit Credit Facility.........................................Exhibit E
Term Sheet for Amended EOTT LLC Agreement...................................Exhibit F
Order Approving the Enron Settlement Agreement..............................Exhibit G
</Table>

<PAGE>

                                  Introduction

     EOTT Energy Partners, L.P.; EOTT Energy Finance Corp.; EOTT Energy General
     Partner, LLC; EOTT Energy Operating Limited Partnership; EOTT Energy
     Pipeline Limited Partnership; EOTT Energy Canada Limited Partnership; and
     EOTT Energy Liquids, L.P., the debtors in these jointly administered
     chapter 11 cases, propose this Plan under Bankruptcy Code section 1121.

                                   ARTICLE 1
                      DEFINITIONS AND CONSTRUCTION OF TERMS

         1.1 SCOPE OF DEFINITIONS. All capitalized terms not defined elsewhere
in the Plan have the meanings prescribed in section 1.2 of the Plan. Any
capitalized term used in the Plan that is not defined in the Plan has the
meaning ascribed to that term in the Bankruptcy Code or the Bankruptcy Rules,
whichever is applicable.

         1.2 DEFINITIONS. Defined terms are set forth in the Glossary of Defined
Terms, which is attached as Exhibit A to the Plan.

         1.3 RULES OF INTERPRETATION AND CONSTRUCTION. For purposes of the Plan,
(i) any reference in the Plan to an existing document or exhibit filed or to be
filed means that document or exhibit as it may have been or may be amended,
modified, or supplemented; (ii) unless otherwise specified, all references in
the Plan to sections, articles, and exhibits are references to sections,
articles, or exhibits to the Plan; (iii) the words "herein," "hereof," "hereto,"
"hereunder," and other words of similar import refer to the Plan in its entirety
and not to any particular portion the Plan; (iv) captions and headings contained
in the Plan are inserted for convenience and reference only, and are not
intended to be part of or to affect the interpretation of the Plan; (v) wherever
appropriate from the context, each term stated in either the singular or the
plural shall include the singular and the plural, and pronouns stated in the
masculine, feminine, or neuter gender shall include the masculine, feminine, and
neuter gender; and (vi) the rules of construction outlined in Bankruptcy Code
section 102 and in the Bankruptcy Rules shall apply to the Plan.

                                       1
<PAGE>

                                   ARTICLE 2
           CLASSIFICATION OF CLAIMS AND EQUITY INTERESTS; IMPAIRMENT

         2.1 CLASSIFICATION. Pursuant to Bankruptcy Code section 1122, a Claim
or Equity Interest is placed in a particular Class for purposes of voting on the
Plan and receiving Distributions under the Plan only to the extent (i) the Claim
or Equity Interest is an Allowed Claim or Allowed Equity Interest in that Class
and (ii) the Claim or Equity Interest has not been paid, released, or otherwise
compromised before the Effective Date. In accordance with Bankruptcy Code
section 1123(a)(1), Administrative Claims, Professional Fee Claims, and Priority
Unsecured Tax Claims are not classified under the Plan.

         2.2 IDENTIFICATION OF CLASSES - EOTT. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT:

Class 1A        Allowed Priority Unsecured Non-Tax Claims
Class 2A        Allowed Secured Tax Claims
Class 3.1A      Allowed Enron Secured Claim
Class 3.2A      Allowed Trade Partner Secured Claims
Class 3.3A      Allowed M&M Lienholder Secured Claims
Class 3.4A      Allowed Other Secured Claims
Class 4A        Allowed Senior Note Claims
Class 5.1A      Allowed Convenience Claims
Class 5.2A      Allowed General Unsecured Claims
Class 6.1A      Allowed Common Units
Class 6.2A      Allowed GP Interests
Class 6.3A      Allowed Subordinated Units
Class 6.4A      Allowed Additional Partnership Interests

         2.3 IDENTIFICATION OF CLASSES -EOTT FINANCE. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT
Finance:

Class 1B        Allowed Priority Unsecured Non-Tax Claims
Class 2B        Allowed Secured Tax Claims
Class 3B        Allowed Other Secured Claims
Class 4B        Allowed Senior Note Claims
Class 5.1B      Allowed Convenience Claims
Class 5.2B      Allowed General Unsecured Claims
Class 6B        Allowed Equity Interests

                                       2
<PAGE>

         2.4 IDENTIFICATION OF CLASSES -EOTT LLC. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT LLC:

Class 1C        Allowed Priority Unsecured Non-Tax Claims
Class 2C        Allowed Secured Tax Claims
Class 3.1C      Allowed Enron Secured Claim
Class 3.2C      Allowed Trade Partner Secured Claims
Class 3.3C      Allowed M&M Lienholder Secured Claims
Class 3.4C      Allowed Other Secured Claims
Class 4C        Allowed Senior Note Claims
Class 5.1C      Allowed Convenience Claims
Class 5.2C      Allowed General Unsecured Claims
Class 6C        Allowed Equity Interests

         2.5 IDENTIFICATION OF CLASSES -EOTT OLP. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT OLP:

Class 1D        Allowed Priority Unsecured Non-Tax Claims
Class 2D        Allowed Secured Tax Claims
Class 3.1D      Allowed Enron Secured Claim
Class 3.2D      Allowed Trade Partner Secured Claims
Class 3.3D      Allowed M&M Lienholder Secured Claims
Class 3.4D      Allowed Other Secured Claims
Class 4D        Allowed Senior Note Claims
Class 5.1D      Allowed Convenience Claims
Class 5.2D      Allowed General Unsecured Claims
Class 6D        Allowed Equity Interests

         2.6 IDENTIFICATION OF CLASSES -EOTT PIPELINE. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT
Pipeline:

Class 1E        Allowed Priority Unsecured Non-Tax Claims
Class 2E        Allowed Secured Tax Claims
Class 3.1E      Allowed Enron Secured Claim
Class 3.2E      Allowed Trade Partner Secured Claims
Class 3.3E      Allowed M&M Lienholder Secured Claims
Class 3.4E      Allowed Other Secured Claims
Class 4E        Allowed Senior Note Claims
Class 5.1E      Allowed Convenience Claims
Class 5.2E      Allowed General Unsecured Claims
Class 6E        Allowed Equity Interests

                                       3
<PAGE>
         2.7 IDENTIFICATION OF CLASSES -EOTT CANADA. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT
Canada:

Class 1F        Allowed Priority Unsecured Non-Tax Claims
Class 2F        Allowed Secured Tax Claims
Class 3.1F      Allowed Enron Secured Claim
Class 3.2F      Allowed Trade Partner Secured Claims
Class 3.3F      Allowed M&M Lienholder Secured Claims
Class 3.4F      Allowed Other Secured Claims
Class 4F        Allowed Senior Note Claims
Class 5.1F      Allowed Convenience Claims
Class 5.2F      Allowed General Unsecured Claims
Class 6F        Allowed Equity Interests

         2.8 IDENTIFICATION OF CLASSES - EOTT LIQUIDS. The following are the
designations for the Classes of Claims against and Equity Interests in EOTT
Liquids:

Class 1G        Allowed Priority Unsecured Non-Tax Claims
Class 2G        Allowed Secured Tax Claims
Class 3.1G      Allowed Enron Secured Claim
Class 3.2G      Allowed Trade Partner Secured Claims
Class 3.3G      Allowed M&M Lienholder Secured Claims
Class 3.4G      Allowed Other Secured Claims
Class 4G        Allowed Senior Note Claims
Class 5.1G       Allowed Convenience Claims
Class 5.2G      Allowed General Unsecured Claims
Class 6G        Allowed Equity Interests

         2.9 UNIMPAIRED CLASSES. Claims in Classes 1A, 1B, 1C, 1D, 1E, 1F and 1G
are not Impaired under the Plan. Under Bankruptcy Code section 1126(f), holders
of Claims in those Classes are conclusively presumed to have accepted the Plan,
and therefore are not entitled to vote to accept or reject the Plan.

         2.10 IMPAIRED CLASSES. Except for the Claims in Classes 1A, 1B, 1C, 1D,
1E, 1F and 1G, all Claims and Equity Interests are Impaired under the Plan.
Holders of Claims and Equity Interests in the Impaired Classes are entitled to
vote to accept or reject the Plan.

                                       4
<PAGE>

                                   ARTICLE 3
              TREATMENT OF ADMINISTRATIVE CLAIMS, PROFESSIONAL FEE
                CLAIMS, AND ALLOWED PRIORITY UNSECURED TAX CLAIMS

         3.1 ADMINISTRATIVE CLAIMS BAR DATE. All applications or other requests
for payment of Administrative Claims (except Professional Fee Claims and any
Administrative Claims arising under the Enron Settlement Agreement) arising on
or before the Confirmation Date must be filed with the Bankruptcy Court and
served on the Debtors, the U. S. Trustee, and any Committee within thirty (30)
days after the Effective Date, or by such earlier deadline governing a
particular Administrative Claim contained in an order of the Bankruptcy Court
entered before the Confirmation Date. Any Administrative Claim (except
Professional Fee Claims and any Administrative Claims arising under the Enron
Settlement Agreement) for which an application or request for payment is not
filed by the deadline specified in this section shall be discharged and forever
barred.

         3.2 PROFESSIONAL FEE CLAIMS BAR DATE. All applications or other
requests for payment of Professional Fee Claims arising on or before the
conclusion of the Closing must be filed with the Bankruptcy Court and served on
the Debtors, the U. S. Trustee, and any Committee within sixty (60) days after
the Effective Date. Any such Professional Fee Claims for which an application or
other request for payment is not filed by the deadline specified in this section
shall be discharged and forever barred.

         3.3 ADMINISTRATIVE TAX CLAIM BAR DATE. Notwithstanding section 3.1 of
the Plan, any application or other request for payment of an Administrative Tax
Claim must be filed with the Bankruptcy Court and served on the Debtors, the
U.S. Trustee, and any Committee within forty-five (45) days after the Effective
Date. Any Administrative Tax Claim for which an application or other request for
payment is not filed by the deadline specified in this section shall be
discharged and forever barred.

                                       5
<PAGE>

         3.4 PAYMENT OF ADMINISTRATIVE CLAIMS AND PROFESSIONAL FEE CLAIMS.
Allowed Administrative Claims (except Professional Fee Claims) arising through
the Confirmation Date shall be paid from the Administrative Claims Reserve
within ten (10) days after the Allowance Date. Any Administrative Claims arising
under the Enron Settlement Agreement shall constitute ongoing obligations of the
Debtors as reorganized and will be paid as such Administrative Claims become due
and payable pursuant to any document or agreement governing the payment of such
amounts. Allowed Professional Fee Claims arising through the conclusion of the
Closing shall be paid within ten (10) days after the Allowance Date (i) first
from the balance of any retainers held by Professionals until fully exhausted,
(ii) second from the balance of any reserve accounts established under any order
of the Bankruptcy Court governing the payment of Professional Fee Claims until
fully exhausted, and (iii) third from the Administrative Claims Reserve.

         3.5 PAYMENT OF ORDINARY COURSE LIABILITIES. Ordinary Course Liabilities
shall be paid by the Debtors pursuant to the existing payment terms and
conditions (whether arising under an agreement, applicable law, or otherwise)
governing any particular Ordinary Course Liability.

         3.6 PAYMENT OF ALLOWED PRIORITY UNSECURED TAX CLAIMS. Allowed Priority
Unsecured Tax Claims shall be paid in full from the Priority Claims Reserve on
the later of (i) the Effective Date or (ii) ten (10) days after the Allowance
Date.

         3.7 U. S. TRUSTEE FEES. After the Effective Date and until the
Bankruptcy Case is closed, all fees incurred under 28 U.S.C. Section 1930(a)(6)
shall be paid from the Administrative Claims Reserve.

                                       6
<PAGE>

                                   ARTICLE 4
        PROVISIONS FOR TREATMENT OF ALLOWED CLAIMS AND EQUITY INTERESTS

         4.1 TREATMENT OF ALLOWED PRIORITY UNSECURED NON-TAX CLAIMS (CLASSES 1A,
1B, 1C, 1D, 1E, 1F AND 1G). Allowed Priority Unsecured Non-Tax Claims shall be
paid from the Priority Claims Reserve on the later of (i) the Effective Date or
(ii) ten (10) days after the Allowance Date.

         4.2 TREATMENT OF ALLOWED SECURED TAX CLAIMS (CLASSES 2A, 2B, 2C, 2D,
2E, 2F AND 2G).

                  4.2.1 DETERMINATION OF ALLOWED SECURED TAX CLAIM. If there is
         more than one Allowed Secured Tax Claim in a particular Class, then
         each Allowed Secured Tax Claim in that Class shall be classified in a
         separate subclass. The applicable Debtor may (i) seek a determination
         under the Bankruptcy Code and the Bankruptcy Rules regarding the
         allowability of any Secured Tax Claim and (ii) initiate litigation to
         determine the amount, extent, validity, and priority of any Liens
         securing any Secured Tax Claim.

                  4.2.2 TREATMENT OF ALLOWED SECURED TAX CLAIMS. Allowed Secured
         Tax Claims shall be satisfied in full at the election of the applicable
         Debtor, which shall be made on or before the Effective Date, as
         follows:

                           4.2.2.1 EXECUTION OF PLAN NOTE. The applicable Debtor
                  may elect to satisfy an Allowed Secured Tax Claim by the
                  execution and issuance at the Closing of a Plan Note to the
                  holder of such Allowed Secured Tax Claim. The Plan Note shall
                  contain the following general terms and conditions:

                  (i)      Principal: The amount of the Allowed Secured Tax
                           Claim;

                  (ii)     Interest: Six percent (6%) per annum;

                  (iii)    Maturity: Six (6) years from the date the Allowed
                           Secured Tax Claim was originally assessed;

                                       7
<PAGE>
                  (iv)     Payment Terms: Consecutive equal quarterly
                           installments of principal and interest in the amount
                           necessary to amortize the principal over the term of
                           the note, together with interest. Payments shall
                           commence on the ninetieth (90th) day after the
                           Effective Date and shall continue quarterly
                           thereafter until the Maturity Date. The Plan Note may
                           be prepaid in whole or in part at any time without
                           penalty.

                           4.2.2.2 TRANSFER OF COLLATERAL. The applicable Debtor
                  may elect to satisfy an Allowed Secured Tax Claim by conveying
                  and transferring any Estate Property serving as collateral for
                  the Allowed Secured Tax Claim to the holder thereof to the
                  extent of the amount of such Allowed Secured Tax Claim. Any
                  collateral remaining after satisfaction of such Allowed
                  Secured Tax Claim shall remain Estate Property, free and clear
                  of any Liens.

                           4.2.2.3 OTHER AGREEMENTS. The applicable Debtor may
                  elect to satisfy an Allowed Secured Tax Claim pursuant to any
                  agreement reached with the holder of the Allowed Secured Tax
                  Claim.

                  4.2.3 RETENTION OF LIEN. Each holder of an Allowed Secured Tax
         Claim shall retain any Liens securing the Allowed Secured Tax Claim
         until such Claim is satisfied in accordance with the Plan, or until an
         earlier date agreed to by the holder of the Allowed Secured Tax Claim
         and the applicable Debtor.

                  4.2.4 DEFICIENCY CLAIM. If the holder of an Allowed Secured
         Tax Claim has a deficiency claim, such Claim shall be treated (as
         determined by the Bankruptcy Court) under the Plan as either (i) a
         Class 5 General Unsecured Claim or (ii) a Priority Unsecured Tax Claim.

         4.3 TREATMENT OF ALLOWED ENRON SECURED CLAIMS (CLASSES 3.1A, 3.1C,
3.1D, 3.1E, 3.1F AND 3.1G). All Claims of the Enron Parties, including any
Secured Claims, shall be fully

                                       8
<PAGE>

satisfied pursuant to the terms and conditions of the Enron Settlement Agreement
as approved by the Bankruptcy Court. On and after the Effective Date, the Enron
Settlement Agreement (including the release and indemnity described therein) and
the documents and instruments to be executed in connection therewith shall
represent the binding obligations of the applicable Debtors as reorganized and
shall be enforceable with their respective terms and conditions. A copy of the
Enron Settlement Agreement and related documents are attached to this Plan as
Exhibit B, and are incorporated herein by reference.

         4.4 TREATMENT OF ALLOWED TRADE PARTNERS SECURED CLAIMS (CLASSES 3.2A,
3.2C, 3.2D, 3.2E, 3.2F AND 3.2G) Allowed Secured Claims of Trade Partners shall
be paid in full by the applicable Debtor pursuant to the existing payment terms
and conditions governing any particular Allowed Trade Partner Secured Claim.
Each holder of an Allowed Trade Partner Secured Claim shall retain any Liens
securing the Allowed Trade Partners Secured Claim until such Claim is satisfied
in accordance with the Plan, or until an earlier date agreed to by the holder of
the Allowed Trade Partner Secured Claim and the applicable Debtor.

         4.5 TREATMENT OF ALLOWED M&M LIENHOLDER SECURED CLAIMS (CLASSES 3.3A,
3.3C, 3.3D, 3.3E, 3.3F AND 3.3G)

                  4.5.1 DETERMINATION OF ALLOWED M&M LIENHOLDER SECURED CLAIM.
         If there is more than one Allowed M&M Lienholder Secured Claim in a
         particular class, then such Claim in that class will be classified in a
         separate subclass. The applicable Debtor may (i) seek a determination
         under the Bankruptcy Code and Bankruptcy Rules regarding the
         allowability of any M&M Lienholders Secured Claim and (ii) initiate
         litigation to determine the amount, extent, validity, and priority of
         any Lien securing any M&M Lienholder Secured Claim.

                                       9
<PAGE>
                  4.5.2 EXECUTION OF PLAN NOTE. Allowed M&M Lienholder Secured
         Claims shall be satisfied by the applicable Debtor executing and
         issuing a Plan Note on the Closing Date to the holder of any Allowed
         M&M Lienholder Secured Claim. The Plan Note shall contain the following
         general terms:

                  (i)      Principal: The amount of the Allowed M&M Lienholder
                           Secured Claim.

                  (ii)     Interest: Six percent (6%) per annum.

                  (iii)    Maturity: Six (6) years from the date the note is
                           executed.

                  (iv)     Payment Terms: Consecutive equal quarterly
                           installments of principal and interest in the amount
                           necessary to amortize the principal over the term of
                           the note, together with interest. Payments shall
                           commence on the ninetieth (90th) day after the
                           Effective Date and shall continue quarterly
                           thereafter until the maturity date. The Plan Note may
                           be prepaid in whole or in part at any time without
                           penalty.

                  4.5.3 RETENTION OF LIEN. Each holder of an Allowed M&M
         Lienholder Secured Claim shall retain any Liens securing such Allowed
         Secured Claim until such Claim is satisfied in accordance with the
         Plan, or until an earlier date agreed to by the holder of the Allowed
         M&M Lienholder Secured Claim and the applicable Debtor.

         4.6 TREATMENT OF ALLOWED OTHER SECURED CLAIMS (CLASSES 3.4A, 3B, 3.4C,
3.4D, 3.4E, 3.4F AND 3.4G).

                  4.6.1 DETERMINATION OF ALLOWED OTHER SECURED CLAIMS. If there
         is more than one Allowed Other Secured Claim in a particular Class,
         then each Allowed Other Secured Claim in that Class shall be classified
         in a separate subclass. The applicable Debtor may (i) seek a
         determination under the Bankruptcy Code and the Bankruptcy Rules
         regarding the allowability of any Other Secured Claim and (ii) initiate
         litigation to determine the amount, extent, validity, and priority of
         any Liens securing any Other Secured Claim.

                                       10
<PAGE>
                  4.6.2 TREATMENT OF ALLOWED OTHER SECURED CLAIMS. Allowed Other
         Secured Claims shall be satisfied in full at the election of the
         applicable Debtor as follows:

                           4.6.2.1 EXECUTION OF PLAN NOTE. The applicable Debtor
                  may elect to satisfy an Allowed Other Secured Claim by the
                  execution and issuance at the Closing of a Plan Note to the
                  holder of such Allowed Other Secured Claim. The Plan Note
                  shall contain the following general terms and conditions:

                           (i)      Principal: the amount of the Allowed Other
                                    Secured Claim;

                           (ii)     Interest: Six percent (6%) per annum;

                           (iii)    Maturity: Six (6) years from the date the
                                    note is executed;

                           (iv)     Payment Terms: Consecutive equal quarterly
                                    installments of principal and interest in
                                    the amount necessary to amortize the
                                    principal over the term of the note,
                                    together with interest. Payments shall
                                    commence on the ninetieth (90th) day after
                                    the Effective Date and shall continue
                                    quarterly thereafter until the maturity
                                    date. The Plan Note may be prepaid in whole
                                    or in part at any time without penalty.

                           4.6.2.2 TRANSFER OF COLLATERAL. The applicable Debtor
                  may elect to satisfy an Allowed Other Secured Claim by
                  conveying and transferring any Estate Property serving as
                  collateral for the Allowed Other Secured Claim to the holder
                  thereof to the extent or the amount of such Allowed Other
                  Secured Claim. Any collateral remaining after satisfaction of
                  such Allowed Other Secured Claim shall remain Estate Property,
                  free and clear of any Liens.

                           4.6.2.3 OTHER AGREEMENTS. The applicable Debtor may
                  elect to satisfy an Allowed Other Secured Claim pursuant to
                  any agreement reached with the holder of the Allowed Other
                  Secured Claim.

                                       11
<PAGE>
                  4.6.3 RETENTION OF LIEN. Each holder of an Allowed Other
         Secured Claim shall retain any Liens securing the Allowed Other Secured
         Claim until such Claim is satisfied in accordance with the Plan, or
         until an earlier date agreed to by the holder of the Allowed Other
         Secured Claim and the applicable Debtor.

                  4.6.4 DEFICIENCY CLAIM. If the holder of an Allowed Other
         Secured Claim has a deficiency claim, such Claim shall be treated under
         the Plan as a Class 5 General Unsecured Claim.

         4.7 TREATMENT OF ALLOWED SENIOR NOTE CLAIMS (CLASSES 4A, 4B, 4C, 4D,
4E, 4F AND 4G). Each holder of an Allowed Senior Note Claim will receive:

                  (i)      a Pro Rata Share of the New Notes;

                  (ii)     a Pro Rata Share of the Class 4 LLC Distribution;

                  (iii)    the Class 6 LLC Distribution; and

                  (iv)     the LLC Warrant Distribution.

Notwithstanding the foregoing treatment, each holder of an Allowed Senior Note
Claim irrevocably divests its right to receive the Class 6 LLC Distribution and
the LLC Warrant Distribution in favor of the holders of Class 6.1A Allowed
Common Units by directing the Debtors to distribute the Class 6 LLC Distribution
and the LLC Warrant Distribution to the holders of Class 6.1A Allowed Common
Units in accordance with the terms of the Plan.

         4.8 TREATMENT OF ALLOWED GENERAL UNSECURED CLAIMS (CLASSES 5.1A, 5.1B,
5.1C, 5.1D, 5.1E, 5.1F AND 5.1G). Each holder of an Allowed General Unsecured
Claim (excluding such Claims constituting an Intercompany Claim but including
any GP Intercompany Claim) shall receive a Pro Rata Share of the Class 5
Distribution.

         4.9 TREATMENT OF ALLOWED CONVENIENCE CLAIMS (CLASS 5.2A, 5.2B, 5.2C,
5.2D, 5.2E, 5.2F AND 5.2G). Each holder of an Allowed Convenience Claim shall be
paid, on the Effective Date or as soon thereafter as practicable, Cash in an
amount equal to the lesser of (i) ten thousand dollars ($10,000.00) or (ii) the
Allowed amount of each Convenience Claim; provided,

                                       12
<PAGE>

however, that if the total amount of Convenience Claims exceeds the Convenience
Claim Amount, each holder of a Convenience Claim shall receive a Pro Rata Share
of the Convenience Claim Amount. The total amount of Allowed Convenience Claims
to be paid by the Debtors shall not exceed the Convenience Claim Amount.
Creditors with a Claim or Claims in a total amount greater than $10,000.00 who
elect to have their Claim(s) treated as a Convenience Claim waive the remainder
of their Claim(s), and shall not be entitled to any other Distribution under the
Plan.

         4.10 TREATMENT OF ALLOWED COMMON UNITS IN EOTT (CLASS 6.1A). Class 6.1A
Common Units in EOTT shall be canceled and extinguished effective on the
Effective Date; however, notwithstanding such cancellation and consistent with
section 4.7 of the Plan, each holder (on the Effective Date) of a Class 6.1A
Allowed Common Unit shall receive from the Debtors:

                  (i)      the Class 6 LLC Distribution; and

                  (ii)     the LLC Warrant Distribution.

         4.11 TREATMENT OF ALLOWED GP INTERESTS (CLASS 6.2A), ALLOWED
SUBORDINATED UNITS (CLASS 6.3A), ALLOWED ADDITIONAL PARTNERSHIP INTERESTS (CLASS
6.4A), AND ALLOWED EQUITY INTERESTS IN EOTT LLC (CLASS 6C). Class 6.2A GP
Interests, Class 6.3A Subordinated Units, Class 6.4A Additional Partnership
Interests, and Class 6C Equity Interests shall be canceled and extinguished
effective on the Effective Date, and holders of such Equity Interests shall not
receive or retain anything on account of such Equity Interests.

         4.12 TREATMENT OF EQUITY INTERESTS (CLASSES 6B, 6D, 6E, 6F AND 6G).
Each holder of an Allowed Equity Interest in Classes 6B, 6D, 6E, 6F and 6G shall
retain its Equity Interest(s) under the Plan, but shall not be entitled to
receive any Distribution under the Plan.

                                       13
<PAGE>
                                   ARTICLE 5
                               EXECUTORY CONTRACTS

         5.1 ASSUMPTION AND REJECTION. All Executory Contracts except those
identified on the Rejection Schedule shall be assumed by the applicable
Debtor(s). To the extent required under Bankruptcy Code section 365(b)(1), any
Cure not otherwise barred pursuant to any order of the Bankruptcy Court entered
before the Effective Date shall be paid by the Debtors on the Effective Date.
Except as otherwise provided for in section 5.2 of the Plan, all Executory
Contracts identified on the Rejection Schedule shall be rejected as of the
Confirmation Date, unless such Executory Contracts have been previously rejected
pursuant to an order of the Bankruptcy Court.

         5.2 APPROVAL OF ASSUMPTION OR REJECTION. Entry of the Confirmation
Order shall constitute the approval, under Bankruptcy Code section 365(a), of
(i) the assumption of the Executory Contracts identified in accordance with
sections 5.1 and 5.2 of the Plan and (ii) the rejection of all other Executory
Contracts.

         5.3 REJECTION CLAIMS. Unless the Bankruptcy Court, the Bankruptcy Code,
or the Bankruptcy Rules establish an earlier deadline concerning the rejection
of a particular Executory Contract, any Claim arising out of the rejection of an
Executory Contract under Article 5 of the Plan, must be filed with the
Bankruptcy Court and served on the Debtors, the U.S. Trustee, and any Committee
by the Rejection Claim Bar Date. Any such Claims not filed by the Rejection
Claim Bar Date shall be discharged and forever barred. Any Claims arising out of
the rejection of an Executory Contract pursuant to a Final Order other than the
Confirmation Order must be filed by (i) the date, if any, specified in the Final
Order approving such rejection or (ii) if no such date, the Rejection Claim Bar
Date; otherwise, such Claims are discharged and forever barred. All Allowed
Claims arising from the rejection of an Executory Contract shall be treated as a
Class 5 Allowed General Unsecured Claim under the Plan.

                                       14
<PAGE>

                                   ARTICLE 6
                      MEANS FOR IMPLEMENTATION OF THE PLAN

         6.1 SUBSTANTIVE CONSOLIDATION. On the Effective Date, the Debtors and
their respective Estates shall be substantively consolidated. As a result of
such substantive consolidation, (i) all Intercompany Claims (except any GP
Intercompany Claim) by and among the Debtors will be eliminated, (ii) any
obligation of any of the Debtors and all guarantees thereof executed by any of
the Debtors will be deemed to be an obligation of each of the Debtors, (iii) any
Claim filed or asserted against any of the Debtors will be deemed a Claim
against each of the Debtors, (iv) for purposes of determining the availability
of any right of setoff under Bankruptcy Code section 553, the Debtors will be
treated as one entity so that (subject to the other provisions of Bankruptcy
Code section 553) debts due to any of the Debtors may be offset against the
debts owed by any of the Debtors. On the Effective Date, and in accordance with
the terms of the Plan, all Claims based on guarantees of collection, payment, or
performance made by any Debtor concerning the obligations of another Debtor
shall be discharged, released, and without further force or effect. The
substantive consolidation of the Debtors shall not constitute or effectuate a
merger of the corporate or other legal identities of the Debtors, and the
Debtors' respective corporate and other legal identities shall remain intact,
except as otherwise specified in the Plan.

         6.2 THE CLOSING. A Closing of the transactions required and
contemplated under the Plan shall take place on the Effective Date at the
offices of Haynes and Boone, LLP, 1000 Louisiana, Suite 4300, Houston, Texas
77002, or at such other place identified in a notice provided to those parties
listed in section 17.2 of the Plan. The Debtors may reschedule the Closing by
making an announcement at the originally scheduled Closing of the new date for
the Closing. A notice of the rescheduled Closing shall be filed with the
Bankruptcy Court and

                                       15
<PAGE>

served on the parties identified in section 17.2 of the Plan within two (2) days
after the originally scheduled Closing. The following actions shall occur at or
before the Closing (unless otherwise specified), and shall be effective on the
Effective Date:

                  6.2.1 EXECUTION OF DOCUMENTS AND CORPORATE ACTION. The Debtors
         shall deliver all documents and perform all actions reasonably
         contemplated with respect to implementation of the Plan. Dana R. Gibbs
         is designated as the authorized representative of each Debtor (i) to
         execute on behalf of each Debtor, in a representative capacity and not
         individually, any documents or instruments after the Confirmation Date
         or at the Closing that may be necessary to consummate the Plan and (ii)
         to undertake any other action on behalf of each Debtor to consummate
         the Plan. Dana R. Gibbs may take any action authorized under this
         section without action by or notice to the Debtors' board of directors
         (or managers) or shareholders (or members).

                  6.2.2 DISCHARGE OF SENIOR NOTE INDENTURE AND CANCELLATION OF
         SENIOR NOTES. On the Effective Date, the Senior Note Indenture shall be
         terminated and canceled and rendered of no further force and effect;
         provided, however, that the cancellation of the Senior Note Indenture
         shall not (i) impair the rights of the Noteholders under the Plan nor
         (ii) impair the rights of the Indenture Trustee under the Plan,
         including the lien and priority rights of the Senior Note Indenture
         Trustee under the Senior Note Indenture. The Senior Note Indenture
         shall continue in effect to the extent necessary (a) for the Indenture
         Trustee to receive and make Distributions under the Plan of the New
         Notes and New LLC Units and (b) to maintain the validity of the
         charging lien granted to the Indenture Trustee under the Senior Note
         Indenture. Any actions taken by the Indenture Trustee that are not
         authorized by (or are otherwise inconsistent with) the Plan shall be
         null and void. On the full performance by the

                                       16
<PAGE>

Indenture Trustee of all actions or duties under the Plan (including making the
required Distributions), the Indenture Trustee shall be relieved of any further
obligations arising under the Senior Note Indenture. On the Effective Date, the
Senior Notes shall be canceled and shall be null and void, and the Senior Notes
shall evidence no rights, except the right to receive Distributions under the
Plan. All canceled Senior Notes held by the Indenture Trustee shall be disposed
of in accordance with the customary procedures under the Senior Note Indenture,
unless the Debtors request the Indenture Trustee to return the canceled Senior
Notes to the applicable Debtors.

         6.2.3 EXECUTION OF NEW INDENTURE AND ISSUANCE OF NEW NOTES. On the
Effective Date, EOTT LLC will take all necessary action to (i) execute the New
Indenture and (ii) issue, distribute, and transfer the New Notes to the
Indenture Trustee for subsequent distribution to the holders of Allowed Senior
Note Claims in accordance with the terms of the Plan.

         6.2.4 AMENDMENT OF EOTT LLC AGREEMENT. On the Effective Date, the EOTT
LLC Agreement shall be amended to conform with the Amended EOTT LLC Agreement.

         6.2.5 BOARD OF MANAGERS AND OFFICERS OF EOTT LLC. At the Closing, all
necessary action, including any amendments to the EOTT LLC Agreement, shall be
taken so that the board of managers of EOTT LLC shall consist of seven (7)
individuals, who will be selected before the Confirmation Hearing. Consenting
Holders shall select six (6) members of the initial board of managers. The
remaining member of the initial board of managers shall be the chief executive
officer of EOTT LLC. The officers of EOTT LLC shall be selected pursuant to and
in the manner provided for in the Amended EOTT LLC Agreement.

                                       17
<PAGE>
                  6.2.6 FORMATION OF HOLDING LLC. At or before the Closing, all
         necessary action shall be taken to form Holding LLC as a wholly-owned
         subsidiary of EOTT LLC in accordance with the Plan.

                  6.2.7 AUTHORIZATION AND ISSUANCE OF NEW LLC UNITS AND LLC
         WARRANTS. On the Effective Date, EOTT LLC shall authorize and issue the
         New LLC Units to the holders of Allowed Senior Note Claims and holders
         of Allowed Common Units in accordance with the terms of the Plan. EOTT
         LLC shall also authorize and issue the LLC Warrants to the holders of
         Allowed Common Units in accordance with the terms of the Plan.

                  6.2.8 AUTHORIZATION AND ISSUANCE OF NEW GP INTEREST AND NEW LP
         INTEREST. At the Closing, all necessary action shall be taken by EOTT
         to authorize and issue the New GP Interest to EOTT LLC and the New LP
         Interest to Holding LLC.

                  6.2.9 AMENDMENT OF EOTT PARTNERSHIP AGREEMENT. At the Closing,
         all necessary action shall be taken to amend the EOTT Partnership
         Agreement to consummate the Plan and to conform to the form of the
         partnership agreements of EOTT Liquids, EOTT Pipeline and EOTT Canada.

                  6.2.10 EXECUTION AND ISSUANCE OF ANY PLAN NOTES AND THE MASTER
         CREDITOR NOTE. At the Closing, the Debtors will execute any and all
         Plan Notes contemplated and required under the Plan. Any and all Plan
         Notes shall be issued and delivered to the applicable Creditor(s) in
         accordance with the terms of the Plan. The Debtors shall also execute
         the Master Creditor Note and deliver the Master Creditor Note to the
         Disbursing Agent. The Disbursing Agent shall hold the Master Creditor
         Note for the benefit of the holders of Allowed General Unsecured
         Claims. The Master Creditor Note shall contain the following general
         terms and conditions:

                                       18
<PAGE>
<Table>
<S>                        <C>      <C>
                           (i)      Principal:  The amount equal to the
                                    aggregate amount of the Class 5 Allowed
                                    General Unsecured Claims multiplied by
                                    the Class 4 Distribution Percentage;

                           (ii)     Interest:  Six percent (6%) per annum;

                           (iii)    Maturity:  The fourteenth (14th) payment
                                    date following the date the note is
                                    executed;

                           (iv)     Payment Terms: Consecutive equal
                                    installments of principal and interest in
                                    the amount necessary to amortize the
                                    principal over the term of the note,
                                    together with interest. Payments shall
                                    commence on the first day of the month that
                                    immediately follows the six (6) month
                                    anniversary of the date of execution of the
                                    note, with the remaining payments due on the
                                    first day of every sixth (6th) month
                                    thereafter, until the maturity date. The
                                    Master Creditor Note may be prepaid in whole
                                    or in part at any time without penalty.
</Table>

         6.2.11 AMENDMENT OF THE DEBTORS' ARTICLES OF INCORPORATION AND BY-LAWS.
The Debtors' articles of incorporation and by-laws (or analogous governance
documents) shall be amended and all necessary action shall be taken to:

         (i) prohibit the issuance of non-voting equity securities, and
providing, as to the several classes of securities possessing voting power, an
appropriate distribution of such power among such classes, including, in the
case of any class of equity securities having a preference over another class of
equity securities with respect to dividends, adequate provisions for the
election of directors representing such preferred class in the event of default
in the payment of such dividends; and

         (ii)provide for such provisions, terms, and conditions necessary to
comply, conform with, and implement the terms, conditions, and requirements of
the Plan.

         6.2.12 CONSUMMATION OF THE EXIT CREDIT FACILITY. The applicable Debtors
are authorized and directed take all actions (including the execution of any
documents) necessary to consummate the Exit Credit Facility.

         6.2.13 CONSUMMATION OF THE ENRON SETTLEMENT AGREEMENT. The Debtors and
the Enron Parties are authorized and directed take all actions (including the
payment of any Cash and the execution of the EOTT Note, the EOTT Guaranty, and
any release agreement or other documents) necessary to consummate and effectuate
the Enron Settlement Agreement, which is attached to the Plan as Exhibit B.

                                       19
<PAGE>
                  6.2.14 SURRENDER OF INSTRUMENTS. Each Claimholder holding a
         certificate or instrument evidencing a Claim against the Debtors or the
         Estate Property and whose Claims are treated under the Plan shall
         surrender such certificate or instrument to the Disbursing Agent on the
         Effective Date as a prerequisite to receiving any Distribution under
         the Plan, unless the non-availability of such certificate or instrument
         is established to the satisfaction of the Disbursing Agent.

                  6.2.15 ESTABLISHMENT OF RESERVES AND OTHER ACCOUNTS.

                           6.2.15.1 ESTABLISHMENT OF ADMINISTRATIVE CLAIMS
                  RESERVE. Within sixty (60) days after the Effective Date, the
                  Debtors shall establish the Administrative Claims Reserve,
                  which shall be maintained in a segregated, interest-bearing
                  account. The Administrative Claims Reserve shall be funded
                  with Cash in an amount equal to the claimed and/or scheduled
                  amount of all Administrative Claims.

                           6.2.15.2 ESTABLISHMENT OF PRIORITY CLAIMS RESERVE.
                  Within sixty (60) days after the Effective Date, the Debtors
                  shall establish the Priority Claims Reserve, which shall be
                  maintained in a segregated interest-bearing account. The
                  Priority Claims Reserve shall be funded with Cash in an amount
                  equal to the claimed and/or scheduled amount of all Priority
                  Unsecured Tax Claims and all Priority Unsecured Non-Tax
                  Claims, including, if applicable, interest accrued from the
                  Petition Date to the Effective Date.

         6.3 TERMINATION OF THE COMMITTEE. The appointment and operation of any
Committee shall terminate on the date specified in the Confirmation Order. The
dissolution or termination of the appointment and operation of any Committee
shall not prejudice the rights of any agents

                                       20
<PAGE>

of the Committee (including its Professionals and Committee members) to pursue
their separate claims for compensation and reimbursement of expenses, including
Professional Fee Claims under Bankruptcy Code sections 330, 331 and/or
503(b)(3)(F).

         6.4 BANKRUPTCY CODE SECTION 1145 DETERMINATION. Confirmation of the
Plan shall constitute a determination, in accordance with Bankruptcy Code
section 1145, that (except with respect to an entity that is an underwriter as
defined in Bankruptcy Code section 1145(b)) Section 5 of the 1933 Act and any
state or local law requiring registration for offer or sale of a security or
registration or licensing of an issuer of, underwriter of, broker or dealer in,
a security do not apply to the offer or sale of any securities under the Plan
(including the New Notes, New LLC Units, the LLC Warrants, the New GP Interest,
and the New LP Interest).

         6.5 IMPLEMENTATION OF MANAGEMENT INCENTIVE COMPENSATION PLAN. At the
Closing, EOTT LLC will implement a management incentive plan for employees and
directors of EOTT LLC. Under the management incentive plan, up to 1,200,000 of
the New LLC Units shall be reserved for issuance pursuant to options or
restricted New LLC Unit grants. The management incentive plan will be
administered by the compensation committee of the board of managers of EOTT LLC.

                                   ARTICLE 7
                 RIGHTS AND OBLIGATIONS OF THE DISBURSING AGENT

         7.1 SELECTION AND RETENTION. Before the Confirmation Hearing, the
Debtors shall nominate a candidate to serve as the Disbursing Agent under the
Plan. The Debtors shall also negotiate a compensation arrangement with such
candidate. The Debtors shall file with the Bankruptcy Court at least five (5)
days before the Confirmation Hearing a disclosure identifying the candidate for
Disbursing Agent and outlining the terms of the proposed compensation

                                       21
<PAGE>

arrangement. The Disbursing agent candidate shall be approved at the
Confirmation Hearing, and shall undertake the required duties under the Plan on
the Closing Date.

         7.2 DUTIES OF THE DISBURSING AGENT. Pursuant to the terms and
provisions of the Plan, the Disbursing Agent shall hold the Master Creditor
Note, make Master Creditor Note Distributions, and undertake any other duties
required by the Plan or any retention agreement with the Debtors.

                                   ARTICLE 8
                   GENERAL PROVISIONS GOVERNING DISTRIBUTIONS

         8.1 IN GENERAL. Except for Distributions to be made by the Disbursing
Agent, the Debtors shall make all Distributions required under the Plan.

         8.2 DISTRIBUTIONS ON ALLOWED CLAIMS AND ALLOWED EQUITY INTERESTS ONLY.
Distributions under the Plan shall be made only to the holders of Allowed Claims
and Allowed Equity Interests. Until a Disputed Claim or Disputed Equity Interest
becomes an Allowed Claim or Allowed Equity Interest, the holder of that Disputed
Claim or Disputed Equity Interest shall not receive the consideration otherwise
provided to such Claimholder or Interestholder under the Plan.

         8.3 PLACE AND MANNER OF PAYMENTS OF DISTRIBUTIONS. Except as otherwise
specified in the Plan or the Enron Settlement Agreement, Distributions to
holders of Allowed Claims or Allowed Equity Interests shall be made by mailing
such Distribution to the Claimholder or Interestholder at the address listed in
any proof of claim or interest filed by the Claimholder or Interestholder or at
such other address as such Claimholder or Interestholder shall have specified
for payment purposes in a written notice received by the Debtors or the
Disbursing Agent (as applicable) at least twenty (20) days before a Distribution
Date. If a Claimholder or Interestholder has not filed a proof of claim or
interest or sent the Debtors or Disbursing Agent

                                       22
<PAGE>

(as applicable) a written notice of payment address, then the Distribution for
such Claimholder or Interestholder will be mailed to the address identified in
the Schedules of Assets and Liabilities or the Schedule of Equity
Interestholders. The Debtors or the Disbursing Agent (as applicable) shall
distribute any Cash by wire, check, or such other method as the Debtors or the
Disbursing Agent (as applicable) deems appropriate under the circumstances.
Before receiving any Distributions, all Claimholders or Interestholders, at the
Debtors' or the Disbursing Agent's (as applicable) request, must provide written
notification of their respective Federal Tax Identification Numbers or Social
Security Numbers to the Debtors or the Disbursing Agent (as applicable);
otherwise, the Debtors or the Disbursing Agent (as applicable) may suspend
Distributions to any Claimholders or Interestholders who have not provided their
Federal Tax Identification Number or Social Security Number.

         8.4 UNDELIVERABLE DISTRIBUTIONS. If a Distribution to any Claimholder
or Interestholder is returned as undeliverable, the Debtors of the Disbursing
Agent (as applicable) shall use reasonable efforts to determine such
Claimholder's or Interestholder's then current address. No further Distributions
shall be made to such Claimholder or Interestholder unless and until the Debtors
or the Disbursing Agent (as applicable) is notified of such Claimholder's or
Interestholder's then current address.

         8.5 TREATMENT OF UNCLAIMED OR UNDELIVERABLE DISTRIBUTIONS. If any
Person entitled to a Distribution under the Plan cannot be located on the
Effective Date or any time thereafter, then, subject to the provisions of this
section and Article 13, such Distribution shall be set aside and held in an
interest-bearing account or fund maintained by the Debtors or the Disbursing
Agent (as applicable) on behalf of such Person. If such Person is located within
six (6) months after the Effective Date, such Distribution, together with any
interest actually earned thereon and proceeds

                                       23
<PAGE>

thereof (less the allocable portion of taxes paid by the Debtors on account of
such Person), shall be paid or distributed to such Person. If the Person cannot
be located within six (6) months after the Effective Date, then (i) such Person
shall no longer be a Claimholder or Interestholder and (ii) any Distribution and
interest and proceeds thereon allocable to such Person (net of the allocable
portion of taxes paid by the Debtors) shall revest in the Debtors free and clear
of any Claim to such property by or on behalf of such Person (who shall be
deemed to have released such Claim, and such Claim shall be deemed disallowed)
and shall be otherwise distributed to the remaining Claimholders or
Interestholders in the same Class as the Person who cannot be located, so that
such remaining Claimholders or Interestholders receive a Pro Rata Share of such
unclaimed or undeliverable Distribution (which Pro Rata Share shall be
calculated without reference to, or consideration of, any Claim for which a
Distribution is unclaimed, undeliverable, or disallowed).

         8.6 WITHHOLDING. The Debtors or the Disbursing Agent (as applicable)
may at any time withhold from a Distribution to any Person (except the Internal
Revenue Service) such amounts sufficient to pay any tax or other charge that has
been or may be imposed on such Person with respect to the amount distributable
or to be distributed under the income tax laws of the United States or of any
state or political subdivision or entity by reason of any Distribution provided
for in the Plan, whenever such withholding is determined by the Debtors or the
Disbursing Agent (as applicable) (in their sole discretion) to be required by
any law, regulation, rule, ruling, directive, or other governmental requirement.
The Debtors or the Disbursing Agent (as applicable), in the exercise of its sole
discretion and judgment, may enter into agreements with taxing or other
authorities for the payment of such amounts that may be withheld in accordance
with the provisions of this section. Notwithstanding the foregoing but without

                                       24
<PAGE>
prejudice to the Debtors' rights, such Person shall have the right with respect
to the United States, or any state, or any political subdivision of either, to
contest the imposition of any tax or other charge by reason of any Distribution
under the Plan.

         8.7 INTEREST. Interest received with respect to principal distributed
under the Plan shall be distributed along with the underlying principal.

         8.8 DISTRIBUTIONS TO HOLDERS OF SENIOR NOTES.

                  8.8.1 DISTRIBUTIONS. Notwithstanding any other provision of
         the Plan, all Distributions to be made to any holder of an Allowed
         Senior Note Claim under the Plan shall be made to the Indenture Trustee
         on behalf of the such holders in accordance with the terms of the Plan.
         The Indenture Trustee shall distribute the Distributions to the
         Noteholder. Distributions made to the Noteholder under the Plan shall
         be deemed to be Distributions made for the benefit of the beneficial
         holders. In accordance with the Senior Note Indenture, the Indenture
         Trustee may establish reasonable and customary rules and procedures in
         connection with its duties under this section.

                  8.8.2 RECORD DATE FOR SENIOR NOTES. Consistent with the Senior
         Note Indenture, on the Distribution Record Date, the Note Register (as
         defined in the Senior Note Indenture) maintained by the Indenture
         Trustee shall be closed and there shall be no further changes in the
         Note Register maintained by the Indenture Trustee. The Debtors, the
         Indenture Trustee, and the Noteholders shall have no obligation to
         recognize any transfer of the Senior Notes (or interests therein)
         occurring after the Distribution Record Date. The Debtors and the
         Indenture Trustee shall be entitled to recognize and deal for all
         purposes under the Plan with only the Noteholders whose names appear in
         the Note Register maintained by the Indenture Trustee on the
         Distribution Record Date.

                                       25
<PAGE>
         8.9 DISTRIBUTIONS TO CLASS 6.1A ALLOWED COMMON UNITS. EOTT shall issue
stop transfer instructions to its transfer agent of Common Units from and after
the close of business on the Effective Date. Promptly following the Effective
Date, EOTT shall send to each holder of record of Common Units on the Effective
Date a letter of transmittal, in form and substance reasonably satisfactory to
EOTT, to be used to deliver to EOTT certificates formerly representing the
Common Units. Distributions to holders of Class 6.1A Allowed Common Units
required by the Plan shall be made only to Interestholders who deliver to EOTT a
certificate representing the Common Units together with a duly executed letter
of transmittal. The Debtors shall be entitled to rely on the stock transfer
ledger of the transfer agent reflecting record holders of Class 6.1A Allowed
Common Units on the Effective Date for all purposes, including, without
limitation, making Distributions under the Plan. The Debtors shall have no
obligation to recognize any transfer of a Class 6.1A Allowed Common Unit
occurring after the Effective Date.

                                   ARTICLE 9
                              VESTING OF PROPERTY

         9.1 REVESTING OF PROPERTY. On the Effective Date, except as otherwise
expressly provided in the Plan, title to all Estate Property shall vest in the
Debtors free and clear of all Liens of any kind.

                                   ARTICLE 10
                    DISCHARGE, RELEASE AND EXTINGUISHMENT OF
                   LIENS, CLAIMS, INTERESTS AND ENCUMBRANCES

         10.1 DISCHARGE OF DEBTORS. Except as otherwise provided in the Plan,
the rights granted in the Plan and the treatment of all Claims and Equity
Interests shall be in exchange for, and in complete satisfaction, discharge, and
release of, all Claims of any nature whatsoever against the Debtors and any of
the Estate Property. Except as otherwise provided in the Plan, on the Effective
Date, each of the Debtors shall be discharged and released from any and all
Claims,

                                       26
<PAGE>

including demands and liabilities that arose before the Effective Date, and all
debts of the kind specified in Bankruptcy Code sections 502(g), 502(h), or
502(i), regardless of whether (i) a proof of claim evidencing such debt was
filed or deemed filed under Bankruptcy Code section 501; (ii) a Claim based on
such debt is allowed under Bankruptcy Code section 502; or (iii) the holder of a
Claim based on such debt has accepted the Plan. Except as otherwise provided in
the Plan, the Confirmation Order shall be a judicial determination of discharge
of all liabilities of the Debtors. Pursuant to Bankruptcy Code section 524, the
discharge granted under this section shall void any judgment against any of the
Debtors at any time obtained (to the extent it relates to a discharged Claim),
and operates as an injunction against the prosecution of any action against any
of the Debtors or the Estate Property ( to the extent it relates to a discharged
Claim).

         10.2 EXCULPATION. The officers, directors, managers, or Professionals
of any of the Debtors, EOTT GP, and the members of the Committee or their
Professionals shall have no liability to any Claimholder or Interestholder or
other Person for any act or omission in connection with, relating to, or arising
out of the filing of the Debtors' bankruptcy cases, administration of the
Debtors' bankruptcy cases, including the negotiation, preparation, and pursuit
of confirmation of the Plan, the confirmation of the Plan, the consummation of
the Plan, the administration of the Plan or the Estate Property to be
distributed under the Plan, except for any liability based on willful misconduct
or gross negligence. In all such instances, the above-referenced parties shall
be and have been entitled to reasonably rely on the advice of counsel with
respect to their duties and responsibilities in connection with the Debtors'
bankruptcy cases and under the Plan.

                                       27
<PAGE>

                                   ARTICLE 11
 INJUNCTION AGAINST ENFORCEMENT OF PRECONFIRMATION CLAIMS AND EQUITY INTERESTS

         11.1 INJUNCTION ENJOINING HOLDERS OF CLAIMS AGAINST AND EQUITY
INTERESTS IN DEBTORS. Except as otherwise expressly provided in the Plan, after
the Effective Date, all Persons who have been, are, or may be holders of Claims
against or Equity Interests in the Debtors arising before the Effective Date
shall be enjoined from taking any of the following actions against or affecting
the Debtors, their Estates, and the Estate Property regarding such Claims or
Equity Interests (other than actions brought to enforce any rights or
obligations under the Plan):

                  (i) commencing, conducting, or continuing in any manner,
         directly or indirectly, any suit, action, or other proceeding of any
         kind against the Debtors, their Estates, or the Estate Property
         (including, all suits, actions, and proceedings that are pending on the
         Effective Date, which shall be deemed withdrawn and dismissed with
         prejudice);

                  (ii) enforcing, levying, attaching, collecting, or otherwise
         recovering by any manner or means, directly or indirectly, any
         judgment, award, decree, or order against the Debtors, their Estates,
         or the Estate Property;

                  (iii) creating, perfecting, or otherwise enforcing in any
         manner, directly or indirectly, any Lien against the Debtors, their
         Estates, or the Estate Property;

                  (iv) asserting any right of subrogation or recoupment of any
         kind, directly or indirectly, against any obligation due the Debtors,
         their Estates, or their Property; and

                  (v) proceeding in any manner and in any place whatsoever that
         does not conform to or comply with the provisions of the Plan.

         11.2 DERIVATIVE SECURITIES LITIGATION CLAIMS. Claims or causes of
action derivative of or from EOTT ("Derivative Securities Litigation Claims")
are property of the Estate of EOTT under Bankruptcy Code section 541. On and
after the Effective Date, all such Derivative Securities Litigation Claims,
regardless of whether pending on the Petition Date, will be retained by, vest
in, and/or become property of the reorganized EOTT. All named plaintiffs
(including certified and uncertified classes of plaintiffs) in the actions
currently pending relating to any Derivative Securities Litigation Claims and
their respective servants, agents, attorneys, and

                                       28
<PAGE>

representatives shall, on and after the Effective Date, be permanently enjoined,
stayed, and restrained from pursuing or prosecuting any Derivative Securities
Litigation Claim.

                                   ARTICLE 12
                               EVENTS OF DEFAULT

         12.1 EVENTS OF DEFAULT. An event of default shall have occurred if the
Debtors, the Disbursing Agent, or any other Person takes any action, fails to
take any action, or fails to refrain from taking an action prevented, required,
or otherwise set forth in the Plan.

         12.2 REMEDIES FOR DEFAULTS. Should an event of default occur by the
Debtors, the Disbursing Agent, or any other Person, at least one other
party-in-interest (including any Debtor) must provide written notice of the
default to the defaulting party and serve copies of the notice to all parties
identified in section 17.2 of the Plan. If the default is not cured within ten
(10) days after service of the notice of default, the notifying party may
present an ex parte order to the Bankruptcy Court setting a date and time when
the defaulting party must appear before the Bankruptcy Court and show cause why
it should not be held in contempt of the Confirmation Order. If the defaulting
party is found to be in default of the Plan, the Bankruptcy Court shall:

                  (a) assess the costs of the Debtors, the Disbursing Agent, or
         other party-in-interest of proceeding on the order to show cause
         against the defaulting party, such costs to be the greater of the
         actual amounts incurred or $5,000; and

                  (b) designate a person to appear, sign, and/or accept on
         behalf of the defaulting party the documents required under the Plan in
         accordance with Federal Rule of Civil Procedure 70, or enter such other
         order compelling compliance with the Plan that may be necessary and
         that does not materially alter the terms of the Plan as confirmed.

                                   ARTICLE 13
                        PROVISIONS FOR THE RESOLUTION OF
                          OBJECTIONS TO PROOFS OF CLAIM

         13.1 RIGHT TO OBJECT TO CLAIMS. The Debtors shall have the right to
examine and object to any Claims or Equity Interests filed in the Bankruptcy
Case, and shall have the right to object to and contest the allowance of any
such Claims or Equity Interests.

                                       29
<PAGE>
         13.2 DEADLINE FOR OBJECTING TO CLAIMS. Objections to Claims and
objections to Equity Interests, must be filed with the Bankruptcy Court, and a
copy of the objection must be served on the subject Claimant(s) or
Interestholder(s), before the expiration of the Claims Objection Deadline
(unless such period is further extended by subsequent orders of the Bankruptcy
Court); otherwise such Claims and Equity Interests shall be deemed allowed in
accordance with Bankruptcy Code section 502.

         13.3 DEADLINE FOR RESPONDING TO CLAIM OBJECTIONS. Within thirty (30)
days after service of an objection, the Claimholder or Interestholder whose
Claim or Equity Interest was objected to must file a written response to the
objection with the Bankruptcy Court and serve a copy on the Debtors and the
parties identified in section 17.2 of the Plan. Failure to file a written
response within the thirty (30) day time period shall constitute a waiver and
release of the subject Claim or Equity Interest, and shall cause the Bankruptcy
Court to enter a default judgment against the non-responding Claimholder or
Interestholder granting the relief requested in the claim objection.

         13.4 ESTIMATION OF CLAIMS. The Debtors may request the Bankruptcy Court
to estimate any Claim for purposes of allowance under Bankruptcy Code section
502(c).

                                   ARTICLE 14
                     GENERAL PROVISIONS RELATING TO RESERVES

         14.1 ADMINISTRATIVE CLAIMS RESERVES. To the extent any Cash held in the
Administrative Claims Reserve established under the Plan relates to
Administrative Claims or Professional Fee Claims that have either been
disallowed by the Bankruptcy Court or are no longer claimed as evidenced by (i)
a written release of such Claim or (ii) the failure to seek allowance of such
Claim within six (6) months from the Effective Date, then such Cash shall

                                       30
<PAGE>

revest in the Debtors. The Administrative Claims Reserve shall be dissolved once
all required payments have been made.

         14.2 PRIORITY CLAIMS RESERVE. To the extent any Cash held in the
Priority Claims Reserve relate to a Priority Unsecured Non-Tax Claim or a
Priority Unsecured Tax Claim that has either been disallowed by the Bankruptcy
Court or is no longer claimed as evidenced by (i) a written release of such
Claim (ii) or the failure to seek allowance of such Claim within six (6) months
from the Effective Date, then such Cash shall revest in the Debtors. The
Priority Claims Reserve shall be dissolved once all required payments have been
made.

                                   ARTICLE 15
 PROVISIONS FOR THE RETENTION, ENFORCEMENT, COMPROMISE, OR ADJUSTMENT OF CLAIMS

Belonging to the Estate

         15.1 RIGHT TO ENFORCE, COMPROMISE, OR ADJUST ESTATE CLAIMS. The Debtors
shall have and retain the full power, authority, and standing to prosecute,
compromise, or otherwise resolve any claims and causes of action (including
Rights of Action and Avoidance Actions) constituting Estate Property. All
proceeds derived from such claims and causes of action (including Rights of
Action and Avoidance Actions) shall revest in the Debtors.

                                   ARTICLE 16
                           RETENTION OF JURISDICTION

         16.1 RETENTION OF JURISDICTION. The Bankruptcy Court, even after the
Bankruptcy Case has been closed, shall have jurisdiction over all matters
arising under, arising in, or relating to the Bankruptcy Case, including
proceedings to:

                  (a)      ensure that the Plan is fully consummated and
                           implemented;

                  (b) enter such orders that may be necessary or appropriate to
         implement, consummate, or enforce the provisions of the Plan and all
         contracts, instruments, releases, indentures, and other agreements or
         documents created in connection with the Plan or the Disclosure
         Statement;

                                       31
<PAGE>
                  (c) consider any modification of the Plan under Bankruptcy
         Code section 1127;

                  (d) hear and determine all Claims, controversies, suits, and
         disputes against the Debtors to the full extent permitted under 28
         U.S.C. Section 157 and Section 1334;

                  (e) allow, disallow, determine, liquidate, classify, estimate,
         or establish the priority or secured or unsecured status of any Claim,
         including the resolution of any and all objections to the allowance or
         priority of Claims;

                  (f) hear, determine, and adjudicate any litigation involving
         the Rights of Action and Avoidance Actions or other claims or causes of
         action constituting Estate Property;

                  (g) decide or resolve any motions, adversary proceedings,
         contested or litigated matters, and any other matters, and grant or
         deny any motions or applications involving the Debtors that are pending
         on or commenced after the Effective Date;

                  (h) resolve any cases, controversies, suits, or disputes that
         may arise in connection with the consummation, interpretation, or
         enforcement of the Plan, or any entity's obligations incurred in
         connection with the Plan, or any other agreements governing,
         instruments evidencing, or documents relating to any of the foregoing,
         including the interpretation or enforcement of any rights, remedies, or
         obligations under any of the foregoing;

                  (i) hear and determine all controversies, suits, and disputes
         that may arise out of or in connection with the enforcement of any
         subordination and similar agreements among various Creditors under
         Bankruptcy Code section 510;

                  (j) hear and determine all requests for compensation and/or
         reimbursement of expenses that may be made for fees and expenses
         incurred before the Closing Date;

                  (k) enforce any Final Order, the Confirmation Order, the final
         decree, and all injunctions contained in those orders;

                  (l) enter an order concluding and terminating the Debtors'
         chapter 11 cases;

                  (m) correct any defect, cure any omission, or reconcile any
         inconsistency in the Plan, or the Confirmation Order, or any other
         document or instruments created or entered into in connection with the
         Plan;

                  (n) determine all questions and disputes regarding title to
         the Estate Property;

                  (o) classify the Claims of any Claimholders and the treatment
         of those Claims under the Plan, re-examine Claims that may have been
         allowed for purposes of voting, and determine objections that may be
         filed to any Claims;

                  (p) take any action described in the Plan involving the
         Debtors;

                                       32
<PAGE>

                  (q) enforce, by injunction or otherwise, the provisions
         contained in the Plan, the Confirmation Order, any final decree, and
         any Final Order that provides for the adjudication of any issue by the
         Bankruptcy Court;

                  (r) enter and implement such orders that are necessary or
         appropriate if the Confirmation Order is for any reason modified,
         stayed, reversed, revoked, or vacated; and

                  (s) enter a final decree as contemplated by Bankruptcy Rule
         3022.

                                   ARTICLE 17
                               GENERAL PROVISIONS

         17.1 CONFIRMATION ORDER. The Confirmation Order shall contain all
injunctions and other orders that may be necessary to implement the Plan. To the
extent necessary, the Confirmation Order shall contain any provisions necessary
to provide for the substantial consummation of the Plan on the Effective Date.

         17.2 NOTICES. Except as otherwise specifically provided for in the
Plan, whenever the Plan requires notice be given, such notice shall be given to
the following parties at their respective addresses, unless a prior notice of
change of address has been served on the parties identified in this section
indicating a new address:

                  EOTT Energy Partners, L.P.
                  2000 West Sam Houston Parkway
                  Suite 400
                  Houston, Texas 77042
                  Facsimile No.: (713) 993-5813
                  Attn: General Counsel

                  Haynes and Boone, LLP
                  902 Main Street
                  Suite 3100
                  Dallas, Texas 75202
                  Facsimile No.:  (214) 651-5000
                  Attn:  Trey A. Monsour

         17.3 DATES. The provisions of Bankruptcy Rule 9006 shall govern the
calculation of any dates or deadlines referenced in the Plan.

                                       33
<PAGE>

         17.4 FURTHER ACTION. Nothing contained in the Plan shall prevent the
Debtors from taking any actions that may be necessary to consummate the Plan,
even though such actions may not specifically be provided for in the Plan.

         17.5 EXHIBITS. All exhibits attached to the Plan are incorporated in
the Plan by reference and are an integral part of the Plan as though fully set
forth herein.

         17.6 EXEMPTION FROM TRANSFER TAXES. Under Bankruptcy Code section
1146(c), the issuance, transfer, or exchange of notes or equity securities under
the Plan, the creation of any mortgage, deed of trust or other security
interest, the making or assignment of any lease or sublease, or the making or
delivery of any deed or other instrument of transfer under, in furtherance of,
or in connection with the Plan, including any deeds, bills of sale, or
assignments executed in connection with any of the transactions contemplated
under the Plan, shall not be subject to any stamp, real estate transfer,
mortgage recording, or other similar tax.

         17.7 BINDING EFFECT. The Plan shall be binding on, and inure to the
benefit of, the Debtors, any Committee, the Claimholders and Interestholders,
and their respective successors, heirs, and assigns, regardless of whether those
parties voted to accept the Plan.

         17.8 GOVERNING LAW. Except to the extent that the Bankruptcy Code or
Bankruptcy Rules are applicable, the rights and obligations arising under the
Plan shall be governed by, and construed and enforced in accordance with, the
laws of the State of Texas, without giving effect to any conflicts of law
principles.

         17.9 HEADINGS. Headings are used in the Plan for convenience and
reference only, and shall not constitute a part of the Plan for any other
purpose.

                                       34
<PAGE>

         17.10 ROUNDING OF AMOUNTS. Notwithstanding anything to the contrary in
the Plan, the Disbursing Agent, the Indenture Trustee, and any Noteholder may
round down all Distribution amounts payable in Cash under the Plan to the next
lowest whole dollar amount.

         17.11 WITHDRAWAL OR REVOCATION OF THE PLAN. The Debtors reserve the
right to revoke or withdraw the Plan before the Confirmation Date. If the
Debtors should revoke or withdraw the Plan, then the Plan shall be null and
void, and nothing contained in the Plan shall constitute a waiver or release of
any Claims, or prejudice in any manner the rights of the Debtors or any other
Person.

         17.12 RESERVATION OF RIGHTS. Neither the filing of the Plan nor any
statement or provision contained in the Plan or in the Disclosure Statement, nor
the taking of any action with respect to the Plan, shall (i) be or be deemed to
be an admission against interest by the Debtors and (ii) until the Effective
Date, be or be deemed to be a waiver of any rights the Debtors may have (a)
against any other person or (b) in any of the property and assets of any other
Person, and, until the Effective Date, all such rights are specifically
reserved. In the event that the Plan is not confirmed or fails to become
effective, neither the Plan nor the Disclosure Statement, nor any statement
contained in the Plan or in the Disclosure Statement, may be used or relied on
in any manner against the Debtors in any suit, action, proceeding, or
controversy within or without the Bankruptcy Case.

         17.13 DEFECTS, OMISSIONS, AND AMENDMENTS. The Debtors may, with the
approval of the Bankruptcy Court and without notice to holders of Claims,
insofar as it does not materially and adversely affect holders of Claims,
correct any defect, omission, or inconsistency in the Plan in such a manner and
to such extent necessary or desirable to expedite the execution of the Plan. The
Debtors may propose amendments or alterations to the Plan before or after
confirmation as

                                       35
<PAGE>
provided in Bankruptcy Code section 1127 if, in the opinion of the Bankruptcy
Court, the modification does not materially and adversely affect the interests
of holders of Claims, so long as the Plan, as modified, complies with Bankruptcy
Code sections 1122 and 1123 and the Debtors have complied with Bankruptcy Code
section 1125. The Debtors may propose amendments or alterations to the Plan
before or after the Confirmation Date but prior to substantial consummation, in
a manner that, in the opinion of the Bankruptcy Court, does not materially and
adversely affect holders of Claims, so long as the Plan, as modified, complies
with Bankruptcy Code sections 1122 and 1123, the Debtors have complied with
Bankruptcy Code section 1125, and after notice and a hearing, the Bankruptcy
Court confirms such Plan, as modified, under Bankruptcy Code section 1129.

         17.14 GOOD FAITH. Confirmation of the Plan shall constitute a finding
that (i) the Plan has been proposed in good faith and in compliance with the
applicable provisions of the Bankruptcy Code and (ii) the solicitation of
acceptances or rejections of the Plan by all Persons and the offer, issuance,
sale, or purchase of any security offered or sold under the Plan has been in
good faith and in compliance with applicable provisions of the Bankruptcy Code.

                                   ARTICLE 18
                            SUBSTANTIAL CONSUMMATION

         18.1 SUBSTANTIAL CONSUMMATION. The Plan shall be deemed substantially
consummated immediately on the completion of all actions required to be
undertaken at the Closing.

         18.2 FINAL DECREE. On substantial consummation, the Debtors may request
the Bankruptcy Court to enter a final decree closing the case and such other
orders that may be necessary and appropriate.

                                       36
<PAGE>
                                   ARTICLE 19
                    CONDITIONS TO EFFECTIVENESS OF THE PLAN

         19.1 CONDITIONS. The Plan shall not be effective until the following
conditions precedent have occurred:

                  (i) the Bankruptcy Court enters a confirmation order
         acceptable in form and substance to the Debtors, Standard Chartered
         Bank, the Enron Parties, and the Noteholders, unless such condition is
         expressly waived;

                  (ii) all conditions to funding of advances under the Exit
         Credit Facility have been met or waived;

                  (iii) full and indefeasible payment of all amounts due under
         the Post-Petition Credit Facility; and

                  (iv) the performance of all actions required to consummate the
         Enron Settlement Agreement (including the payment of any amounts due
         the Enron Parties under the Enron Settlement Agreement, the execution
         of any required documents, and the delivery of any required instruments
         or other documents), unless such condition is expressly waived.

                                       37
<PAGE>
DATED:  October 8, 2002.

                                      EOTT ENERGY PARTNERS, L.P.

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs
                                           ------------------------------------
                                               President and Chief Executive
                                               Officer, of EOTT Energy Corp.,
                                               its general partner

                                      EOTT ENERGY FINANCE CORP.

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs
                                           ------------------------------------
                                               President and Chief Executive
                                               Officer of EOTT Energy Corp.,
                                               on behalf of EOTT Energy
                                               Partners, L.P., its sole
                                               shareholder

                                      EOTT ENERGY GENERAL PARTNER, LLC

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs
                                           ------------------------------------
                                               President and Chief Executive
                                               Officer of EOTT Energy Corp.,
                                               on behalf of EOTT Energy
                                               Partners, L.P., its sole
                                               shareholder

                                      EOTT ENERGY OPERATING
                                      LIMITED PARTNERSHIP

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs,
                                           ------------------------------------
                                               as President and Chief Executive
                                               Officer of EOTT Energy Corp. on
                                               behalf of EOTT Energy General
                                               Partner, LLC, its general partne

                                       38
<PAGE>
                                      EOTT ENERGY PIPELINE LIMITED PARTNERSHIP

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs
                                           ------------------------------------
                                               as President and Chief Executive
                                               Officer of EOTT Energy Corp. on
                                               behalf of EOTT Energy General
                                               Partner, LLC, its general
                                               partner

                                      EOTT ENERGY CANADA LIMITED PARTNERSHIP

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs
                                           ------------------------------------
                                               as President and Chief Executive
                                               Officer of EOTT Energy Corp. on
                                               behalf of EOTT Energy General
                                               Partner, LLC, its general
                                               partner

                                      EOTT ENERGY LIQUIDS, L.P.

                                               /s/ Dana R. Gibbs
                                      -----------------------------------------
                                      By:      Dana R. Gibbs
                                           ------------------------------------
                                               as President and Chief Executive
                                               Officer of EOTT Energy Corp. on
                                               behalf of EOTT Energy General
                                               Partner, LLC, its general
                                               partner

                                       39
<PAGE>
                                    EXHIBIT A

                            GLOSSARY OF DEFINED TERMS

         1933 ACT means the Securities Act of 1933.

         1934 ACT means the Securities Exchange Act of 1934.

         ADDITIONAL PARTNERSHIP INTEREST means an additional partnership
interest in EOTT that entitles the holder thereof to the rights and privileges
defined under the EOTT Partnership Agreement.

         ADMINISTRATIVE CLAIM means a Claim, or the portion thereof, that is
entitled to priority under Bankruptcy Code sections 503(b) and 507(a)(1),
including (i) the actual and necessary costs and expenses incurred after the
Petition Date of preserving the Estates and operating the business of the
Debtors (such as wages, salaries, or payments for goods and services); (ii)
compensation for legal, financial advisory, accounting and other services and
reimbursement of expenses awarded or allowed under Bankruptcy Code sections
330(a) or 331; and (iii) all fees and charges assessed against the Estates under
28 U.S.C. Section 1930.

         ADMINISTRATIVE CLAIMANT means any Person asserting entitlement to
payment of an Administrative Claim.

         ADMINISTRATIVE CLAIMS RESERVE means that certain reserve of Cash to be
established by the Disbursing Agent under the Plan.

         ADMINISTRATIVE TAX CLAIM means an Administrative Claim held by a
Governmental Unit for taxes (and for interest related to such taxes) for any tax
year or period, all or any portion of which accrued or became due from and after
the Petition Date through and including the Effective Date.

         AFFILIATE means with respect to a Person, (i) an entity that directly
or indirectly owns, controls or holds with power to vote, twenty percent or more
of the outstanding voting securities of such Person, other than an entity that
holds such securities (a) in a fiduciary or agency capacity without sole
discretionary power to vote such securities or (b) solely to secure a debt, if
such entity has not in fact exercised such power to vote, or (ii) a corporation
twenty percent or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held with power to vote, by such Person, or by
an entity that directly or indirectly owns, controls or holds with power to
vote, twenty percent or more of the outstanding voting securities of such
Person, other than an entity that holds such securities (a) in a fiduciary or
agency capacity without sole discretionary power to vote such securities or (b)
solely to secure a debt, if such entity has not in fact exercised such power to
vote.

         ALLOWANCE DATE means (i) as to a Disputed Claim, the date on which such
Disputed Claim becomes an Allowed Claim by Final Order; (ii) as to a Claim
Allowed by Final Order, the date on which the order allowing such Claim becomes
an Allowed Claim by a Final Order; and (iii) as otherwise provided by the Plan.

<PAGE>

         ALLOWED ADDITIONAL PARTNERSHIP INTEREST means an Additional Partnership
Interest that is an Allowed Equity Interest.

         ALLOWED ADMINISTRATIVE CLAIM means an Administrative Claim allowed
under Bankruptcy Code section 503(b) and entitled to priority under Bankruptcy
Code section 507(a)(1).

         ALLOWED CLAIM means any Claim allowable under Bankruptcy Code section
502 (i) for which a proof of claim was filed on or before the Bar Date and as to
which no objection to the allowance thereof has been timely filed, or if an
objection has been timely filed, such claim is allowed by Final Order; or (ii)
for which a proof of claim is not filed and which has been or hereafter is
listed in the Debtors' Schedules of Assets and Liabilities and is not listed as
disputed, contingent or unliquidated as to amount; or (iii) that is deemed
allowed by the terms of the Plan. For purposes of determining the amount of an
Allowed Claim there shall be deducted therefrom an amount equal to the amount of
any claim that Debtors may hold against the Claimant under Bankruptcy Code
section 553.

         ALLOWED COMMON UNITS means a Common Unit that is an Allowed Equity
Interest.

         ALLOWED CONVENIENCE CLAIM means a Convenience Claim that is an Allowed
Claim.

         ALLOWED DISPUTED LITIGATION CLAIMS means a Disputed Litigation Claim
that is an Allowed Claim.

         ALLOWED GENERAL UNSECURED CLAIM means a General Unsecured Claim that is
an Allowed Claim.

         ALLOWED GP UNITS means a GP Unit that is an Allowed Equity Interest.

         ALLOWED ENRON SECURED CLAIM means a Secured Claim of Enron that is an
Allowed Claim.

         ALLOWED EQUITY INTEREST means any Equity Interest allowable under
Bankruptcy Code section 502 (i) for which a proof of interest was filed on or
before the Bar Date and as to which no objection to the allowance thereof has
been timely filed, or if an objection has been timely filed, such Equity
Interest is allowed by Final Order; or (ii) for which a proof of interest is not
filed and that has been or hereafter is listed in the Debtors' Schedules of
Assets and Liabilities or any list of Debtors' Equity Security Holders filed
with the Bankruptcy Court, and is not listed therein as disputed, contingent or
unliquidated as to amount; or (iii) that is deemed allowed by the terms of the
Plan.

         ALLOWED M&M LIENHOLDER SECURED CLAIM means an M&M Lienholder Secured
Claim that is an Allowed Claim.

         ALLOWED OTHER SECURED CLAIM means an Other Secured Claim that is an
Allowed Claim.

         ALLOWED PRIORITY UNSECURED NON-TAX CLAIM means a Priority Unsecured
Non-Tax Claim that is an Allowed Claim.

<PAGE>
         ALLOWED PRIORITY UNSECURED TAX CLAIM means a Priority Unsecured Tax
Claim that is an Allowed Claim.

         ALLOWED PROFESSIONAL FEE CLAIM means a Professional Fee Claim that is
an Allowed Claim.

         ALLOWED SECURED CLAIM means a Secured Claim that is an Allowed Claim.

         ALLOWED SECURED TAX CLAIM means a Secured Tax Claim that is an Allowed
Claim.

         ALLOWED SENIOR NOTE CLAIM means a Senior Note Claim that is an Allowed
Claim.

         ALLOWED SUBORDINATED UNIT mean a Subordinated Unit that is an Allowed
Equity Interest.

         ALLOWED TRADE PARTNER SECURED CLAIM means a Trade Partner Secured Claim
that is an Allowed Claim.

         AMENDED EOTT LLC AGREEMENT means the Amended and Restated Limited
Liability Company Agreement of EOTT LLC, the terms of which are substantially
described in the Term Sheet for Amended EOTT LLC Agreement attached as Exhibit F
to the Plan. The form of the Amended EOTT LLC Agreement will be filed with the
Bankruptcy Court as a Plan Document.

         AVOIDANCE ACTIONS means any causes of action arising under Bankruptcy
Code sections 506, 510, 542, 543, 544, 545, 546, 547, 548, 549, 550, 551 and
553.

         BALLOT means the ballot for voting to accept or reject the Plan.

         BANKRUPTCY CASE means the bankruptcy cases filed by the Debtors under
chapter 11 of the Bankruptcy Code in the Bankruptcy Court, which are jointly
administered under bankruptcy case no. _____________________.

         BANKRUPTCY CODE means title 11 of the United States Code.

         BANKRUPTCY COURT means the United States Bankruptcy Court for the
Southern District of Texas, Corpus Christi Division, or in the event such court
ceases to exercise jurisdiction over the Debtors' chapter 11 cases, such court
that may have jurisdiction over the reorganization of the Debtors under chapter
11 of the Bankruptcy Code.

         BANKRUPTCY RULES means the Federal Rules of Bankruptcy Procedure.

         BAR DATE means ____________, the deadline established by the Bankruptcy
Court for filing proofs of claim or proofs of interest in the Bankruptcy Case.

         BUSINESS means all of the activities in which the Debtors are or have
been engaged before the Effective Date.

         BUSINESS DAY means any day that is not a Saturday, Sunday, or a "legal
holiday" within the meaning of Bankruptcy Rule 9006(a).

<PAGE>
         CASH means lawful currency of the United States of America, including
readily marketable direct obligations of the United States of America,
certificates of deposit issued by federally insured banks, and money market
accounts of federally insured banks.

         CASH COLLATERAL has the meaning prescribed by Bankruptcy Code section
363(a).

         CLAIM has the meaning set forth in Bankruptcy Code section 101(5).

         CLAIMANT OR CLAIMHOLDER means the holder of a Claim.

         CLAIMS OBJECTION DEADLINE means the first Business Day following sixty
(60) days from the Effective Date or any other date established in any Final
Order entered by the Bankruptcy Court modifying such deadline.

         CLASS means a category of holders of Claims or Equity Interests as
classified in the Plan.

         CLASS 4 DISTRIBUTION PERCENTAGE means the ratio of (a) the total
present value as of the Effective Date of all consideration paid to holders of
Class 4 Allowed Senior Note Claims under the Plan to (b) the aggregate amount of
all Class 4 Allowed Senior Note Claims.

         CLASS 4 LLC DISTRIBUTION means the distribution of 11,947,820 New LLC
Units to be issued by EOTT LLC under the Plan.

         CLASS 5 DISTRIBUTION means the distribution of Cash made by the
Disbursing Agent from payments received under the Master Creditor Note.

         CLASS 6 LLC DISTRIBUTION means a distribution, to each holder of Common
Units, of New LLC Units equal to the aggregate of the number of Common Units
held by such holder multiplied by 0.02000 and rounded up or down to the next
whole share in an appropriate manner such that the maximum aggregate number of
New LLC Units issued does not exceed 369,520.

         CLOSING means the closing to be conducted under Article 6 of the Plan.

         COMMITTEE means any Official Committee of Unsecured Creditors appointed
in the Debtors' bankruptcy cases.

         COMMODITY REPURCHASE AGREEMENT means that certain Commodity Repurchase
Agreement dated February 28, 1998 by and between SCTSC and certain of the
Debtors, as amended or modified.

         COMMON UNIT means common units representing limited partner interests
in EOTT that entitle the holder thereof to participate in distributions and
exercise the rights and privileges under the EOTT Partnership Agreement.

         CONFIRMATION DATE means the date that the Confirmation Order is entered
on the docket of the Debtors' chapter 11 cases by the Clerk of the Bankruptcy
Court.

<PAGE>

         CONFIRMATION HEARING means the hearing before the Bankruptcy Court to
consider confirmation of the Plan.

         CONFIRMATION HEARING DATE means the date established by the Bankruptcy
Court for the Confirmation Hearing.

         CONFIRMATION ORDER means the order of the Bankruptcy Court confirming
the Plan in accordance with the provisions of chapter 11 of the Bankruptcy Code.

         CONSENTING HOLDERS means the Noteholders who signed the Restructuring
Agreement dated as of October ___, 2002, by and among EOTT, Enron, Standard
Chartered Bank, Lehman and the signatory Noteholders thereto.

         CONVENIENCE CLAIM means a General Unsecured Claim (otherwise classified
in Class 5.1) in an amount (a) equal to or less than $10.000.00 or (b) greater
than $10,000.00, but which is reduced to $10,000.00 by written election of the
holder thereof made on a validly executed and timely delivered Ballot. All
Allowed General Unsecured Claims (other than Intercompany Claims) held by a
single Creditor will be aggregated and treated as a single Allowed General
Unsecured Claim for purposes of determining the amount of the Convenience Claim.
The post-petition assignment of Allowed General Unsecured Claims shall not
consolidate such Claims owed to separate Creditors on the Petition Date for
purposes of determining the amount of a Convenience Claim.

         CONVENIENCE CLAIM AMOUNT means $1.5 million.

         CREDITOR has the meaning prescribed by Bankruptcy Code section 101(10).

         CURE means the amount of Cash required for the cure necessary to assume
or assume and assign an Executory Contract under Bankruptcy Code section 365(b)
as determined by the Bankruptcy Court or pursuant to any agreement among the
Debtors and the other Party(ies) to the Executory Contract.

         DEBTORS means collectively EOTT Energy Partners, L.P.; EOTT Energy
Finance Corp.; EOTT Energy Operating Limited Partnership; EOTT Energy General
Partners; LLC, EOTT Energy Pipeline Limited Partnership; EOTT Energy Canada
Limited Partnership; and EOTT Energy Liquids, L.P.

         DISBURSING AGENT means the Person selected by the Debtors to serve as
the Disbursing Agent under the Plan, and any successor to such Person.

         DISCLOSURE STATEMENT means the disclosure statement relating to the
Plan and all amendments thereto filed by the Debtors.

         DISCLOSURE STATEMENT APPROVAL DATE means the date that an order
approving any disclosure statement concerning the Plan is entered on the docket
of the Debtors' chapter 11 cases by the Clerk of the United States Bankruptcy
Court.

<PAGE>

         DISPUTED CLAIM means a claim in a particular Class as to which a proof
of Claim has been filed or is deemed to have been filed under applicable law or
an Administrative Claim, as to which an objection has been or is filed in
accordance with the Plan, the Bankruptcy Code, the Bankruptcy Rules, or the
Local Rules, which objection has not been withdrawn or determined by a Final
Order. At such time as a Disputed Claim is disallowed by a Final Order, such
Claim shall no longer be considered a Claim for any purpose under the Plan.
Prior to the time that an objection has been or is filed, for the purposes of
the Plan, a Claim is a Disputed Claim to the extent that (i) the amount of a
Claim specified in a proof of claim exceeds the amount of any corresponding
Claim scheduled by the applicable Debtor in the Schedules of Assets and
Liabilities; (ii) any corresponding Claim scheduled by the applicable Debtor in
the Schedules of Assets and Liabilities has been scheduled as disputed,
contingent or unliquidated, irrespective of the amount scheduled; or (iii) no
corresponding Claim has been scheduled by the applicable Debtor in the Schedules
of Assets and Liabilities.

         DISPUTED CLAIMS RESERVE means that certain reserve of Cash to be
established by the Disbursing Agent or Debtors (as applicable) under the Plan.

         DISPUTED EQUITY INTEREST means an Equity Interest as to which a proof
of interest has been filed or is deemed to have been filed under applicable law
as to which an objection has been or is filed in accordance with the Plan, the
Bankruptcy Code, the Bankruptcy Rules, or the Local Rules, which objection has
not been withdrawn or determined by a Final Order. At such time as a Disputed
Equity Interest is disallowed by a Final Order, such Equity Interest shall no
longer be considered an Equity Interest for any purpose under the Plan. Prior to
the time that an objection has been or is filed, for the purposes of the Plan,
an Equity Interest is a Disputed Equity Interest to the extent that (i) the
amount of an Equity Interest specified in a proof of interest exceeds the amount
of any corresponding Equity Interest scheduled by the applicable Debtor in the
Bankruptcy Case; (ii) any corresponding Equity Interest scheduled by the
applicable Debtor in the Bankruptcy Case has been scheduled as disputed,
contingent or unliquidated, irrespective of the amount scheduled; or (iii) no
corresponding Equity Interest has been scheduled by the applicable Debtor in the
Bankruptcy Case.

         DISTRIBUTION means a distribution of Cash or other non-Cash
consideration made by the Debtors or Disbursing Agent (as applicable) pursuant
to the Plan.

         DISTRIBUTION DATE means any date that a Distribution is made under the
Plan.

         DISTRIBUTION RECORD DATE means the Effective Date.

         EFFECTIVE DATE means the first Business Day following the tenth day (as
calculated in accordance with Bankruptcy Rule 9006(a)), after the Confirmation
Date, on which (a) the Confirmation Order is not stayed and (b) all conditions
to the effectiveness of the Plan have been satisfied or waived as provided in
the Plan.

         ENRON means Enron Corp., an Oregon corporation.

         ENRON PARTIES means collectively, Enron Corp., Enron North America
Corp., Enron Energy Services, Inc., Enron Pipeline Services, Company, EGP Fuels
Company and Enron Gas Liquids, Inc.

<PAGE>

         ENRON SETTLEMENT AGREEMENT means that certain Settlement Agreement
dated _________, 2002, by and among the EOTT Parties and the Enron Parties,
which is attached as Exhibit B to the Plan.

         EOTT means EOTT Energy Partners, L.P., a Delaware limited partnership
and a chapter 11 debtor.

         EOTT CANADA means EOTT Energy Canada Limited Partnership, a Delaware
limited partnership and a chapter 11 debtor.

         EOTT FINANCE mean EOTT Energy Finance Corp., a Delaware corporation and
a chapter 11 debtor.

         EOTT GP means EOTT Energy Corp., a Delaware corporation.

         EOTT GUARANTEE means the guarantee of payments under the EOTT Note made
by EOTT LLC and the EOTT Operating Subsidiaries.

         EOTT LIQUIDS means EOTT Energy Liquids, L.P., a Delaware limited
partnership and the chapter 11 debtor.

         EOTT LLC means EOTT Energy General Partner, L.L.C., a Delaware limited
liability company and a chapter 11 debtor.

         EOTT LLC AGREEMENT means the Limited Liability Company Agreement of
EOTT LLC.

         EOTT OLP means EOTT Energy Operating Limited Partnership, a Delaware
limited partnership and a chapter 11 debtor.

         EOTT OPERATING SUBSIDIARIES means collectively EOTT Pipeline, EOTT OLP,
EOTT Canada and EOTT Liquids.

         EOTT NOTE means the promissory note in the original principal amount of
$6,211,673.13 made by EOTT to the order of Enron and guaranteed by EOTT LLC and
the EOTT Operating Subsidiaries.

         EOTT PARTIES means collectively, EOTT, EOTT Canada, EOTT Finance, EOTT
GP, EOTT Liquids, EOTT LLC, EOTT Pipeline, and EOTT OLP.

         EOTT PARTNERSHIP AGREEMENT means the Amended and Restated Agreement of
Limited Partnership of EOTT Energy Partners, L.P., as amended.

         EOTT PIPELINE means EOTT Energy Pipeline Limited Partnership, a
Delaware limited partnership and a chapter 11 debtor.

         EQUITY INTEREST means all rights arising from any membership interest
or other equity security (as defined in Bankruptcy Code section 101(16)) in any
of the Debtors.

<PAGE>
         ESTATE means the bankruptcy estate of each of the Debtors and all
Estate Property comprising the individual bankruptcy estates of each of the
Debtors within the meaning of Bankruptcy Code section 541.

         ESTATE PROPERTY means all right, title, and interest in and to any and
all property of every kind or nature, owned by the Debtors or their Estates on
the Effective Date as defined by Bankruptcy Code section 541.

         EXCLUSIVE PERIOD means the first 120 days after the Petition Date,
during which only the debtor may file a plan of reorganization/liquidation,
including any extension of that period pursuant to an order of the Bankruptcy
Court.

         EXECUTORY CONTRACTS means "executory contracts" and "unexpired leases"
as such terms are used within Bankruptcy Code section 365, including all
operating leases, capital leases, and Contracts to which any Debtor is a party
or beneficiary on the Confirmation Date.

         EXIT CREDIT FACILITY means the credit facility by and among Standard
Chartered Bank, Lehman, and the Debtors as reorganized to be executed at the
Closing, the terms of which are substantially described in the Term Sheet for
Exit Credit Facility attached as Exhibit E to the Plan. The form of the Exit
Credit Facility will be filed with the Bankruptcy Court as a Plan Document.

         FINAL ORDER means an order or judgment (i) as to which the time to
appeal, petition for certiorari, or move for reargument or rehearing has
expired; or (ii) in the event an appeal, writ of certiorari, or motion for
reargument or rehearing has been filed, such judgment or order has not been
reversed, modified, stayed, or amended.

         GAAP means the generally accepted accounting principles set forth in
the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board ("FASB") (or in such
other statements by such other entity as approved by a significant segment of
the accounting profession which are in effect in the United States).

         GENERAL UNSECURED CLAIM means an Unsecured Claim that is not (i) an
Administrative Claim, (ii) an Administrative Tax Claim, (iii) a Professional Fee
Claim, (iv) a Priority Unsecured Tax Claim, (v) a Priority Unsecured Non-Tax
Claim, or (vi) an Old Note Claim, and includes any GP Intercompany Claims and
all other Claims not separately classified under the Plan.

         GOVERNMENTAL UNIT means a governmental unit as such term is defined in
Bankruptcy Code section 101(27).

         GP INTERCOMPANY CLAIMS means any Intercompany Claim of EOTT GP against
EOTT arising under any indemnity provisions of the EOTT Partnership Agreement.

         GP INTEREST means a general partner interest in EOTT that entitles the
holder thereof to participate in distributions and exercise the rights and
privileges of the general partner under the EOTT Partnership Agreement.

<PAGE>
         HOLDING LLC means EOTT LP Holding LLC, a wholly owned subsidiary of
EOTT LLC to be formed pursuant to the Plan to hold the New LP Units issued by
EOTT.

         IMPAIRED OR IMPAIRMENT has the meaning set forth in Bankruptcy Code
section 1124.

         INDENTURE TRUSTEE means ____________________________________ in its
capacity as indenture trustee under the Senior Note Indenture.

         INSIDER has meaning prescribed in Bankruptcy Code section 101(31).

         INTERCOMPANY CLAIM means any claim, cause of action, liability, or
right to payment, whether reduced to judgment, liquidated or unliquidated, fixed
or contingent, matured or unmatured, disputed or undisputed, legal or equitable,
secured or unsecured, or known or unknown, that exists between or among the
Debtors or their affiliates on the Effective Date.

         INTERESTHOLDER means the holder of an Equity Interest.

         IRS means the Internal Revenue Service.

         LEHMAN means Lehman Commercial Paper Inc.

         LIEN means a lien, security interest, or other interest or encumbrance
as defined in Bankruptcy Code section 101(37) asserted against any Estate
Property.

         LLC WARRANTS means warrants entitling the holders thereof to purchase
an aggregate amount of up to 958,016 New LLC Units (representing approximately
seven percent (7%) of the New LLC Units on a fully diluted basis before giving
effect to the management incentive plan described in section 6.5 of the Plan),
the terms of which are substantially described in the Term Sheet for LLC
Warrants attached as Exhibit D to the Plan. The form of the LLC Warrants will be
filed with the Bankruptcy Court as a Plan Document.

         LLC WARRANT DISTRIBUTION means a distribution, to each holder of Class
6.1A Allowed Common Units, of LLC Warrants to purchase a number of New LLC Units
equal to the aggregate of the number of Common Units held multiplied by 0.05185
and rounded up or down to the next whole share in an appropriate manner such
that the maximum aggregate number of New LLC Units purchaseable on exercise of
the LLC Warrants does not exceed 957,981.

         LOCAL RULES means the local bankruptcy rules prescribed by the
Bankruptcy Court.

         M&M LIENHOLDER SECURED CLAIM means a Secured Claim of a mechanic or
materialman that is secured by a Lien arising under applicable state law to the
extent such Lien is properly and timely perfected in accordance with the
applicable state law and the Bankruptcy Code.

         MASTER CREDITOR NOTE means the promissory note to be issued under the
Plan to the Disbursing Agent as agent for the benefit of Claimholders holding
Allowed Class 5 General Unsecured Claims.

<PAGE>

         NEW INDENTURE means that certain indenture between the applicable
Debtors or issuers and the Indenture Trustee concerning the issuance of the New
Notes, the terms of which are substantially described in the Term Sheet for New
Indenture attached as Exhibit C to the Plan. The Form of the New Indenture will
be filed with the Bankruptcy Court as a Plan Document.

         NEW LLC UNITS means the units of member interests in EOTT LLC to be
issued by EOTT LLC pursuant to the Plan, the terms of which are substantially
described in the Term Sheet for Amended EOTT LLC Agreement attached as Exhibit F
to the Plan. The form of the Amended EOTT LLC Agreement will be filed with the
Bankruptcy Court as a Plan Document.

         NEW NOTES means aggregate of $100 million principal amount of ten
percent (10%) Senior Notes due 2009 issued by the applicable Debtors pursuant to
the New Indenture, the terms of which are substantially described in the Term
Sheet for New Indenture attached as Exhibit C to the Plan. The Form of the New
Indenture will be filed with the Bankruptcy Court as a Plan Document.

         NEW LP INTEREST means the entire limited partner interests in EOTT.

         NEW GP INTEREST means the entire general partner interest in EOTT.

         NOTEHOLDERS means collectively the holders of the Senior Notes.

         ORDINARY COURSE LIABILITY means an Administrative Claim (other than a
Professional Fee Claim or an Administrative Tax Claim) based on liabilities
incurred in the ordinary course of the Debtors' businesses.

         OTHER SECURED CLAIMS means Secured Claims classified in Classes 3.6A,
3.6B, 3C, 3.6D, 3.6E, 3.6F and 3.6G.

         PERSON means and includes natural persons, corporations, limited
partnerships, general partnerships, joint ventures, trusts, land trusts,
business trusts, unincorporated organizations, or other legal entities,
regardless of whether they are governments, agencies, or political subdivisions
thereof.

         PETITION DATE means _________, the date of filing of the Bankruptcy
Case.

         PLAN means the Joint Chapter 11 Plan filed by the Debtors, as such
Joint Chapter 11 Plan may be periodically amended or modified.

         PLAN DOCUMENTS means collectively those documents to be executed in
order to consummate the transactions contemplated under the Plan and which will
be filed with the Bankruptcy Court on or before fifteen (15) days prior to the
Confirmation Date.

         PLAN NOTE means any promissory note to be executed by any Debtor
pursuant to the requirements of the Plan.

<PAGE>
         POST-PETITION CREDIT FACILITY means that certain Debtor-in-Possession
Credit Facility among Standard Chartered Bank and EOTT OLP, EOTT Canada, EOTT
Liquids, and EOTT Pipeline as borrowers and EOTT and EOTT GP as guarantors,
dated as of the Petition Date.

         PRE-PETITION CREDIT FACILITY means the Second Amended and Restated
Reimbursement Loan and Security Agreement, dated April 23, 2002 between the
Debtors and Standard Chartered Bank, as amended or modified.

         PRIORITY CLAIMS RESERVE means the Reserve of Cash to be established by
the Disbursing Agent under the Plan.

         PRIORITY UNSECURED NON-TAX CLAIM means an Unsecured Claim, or that
portion thereof, that is entitled to priority in payment under Bankruptcy Code
sections 507(a)(2-7) and 507(a)(9) and classified in Classes 1A, 1B, 1C, 1D, 1E,
1F and 1G under the Plan.

         PRIORITY UNSECURED TAX CLAIM means an Unsecured Claim, or that portion
thereof, that is entitled to priority in payment under Bankruptcy Code section
507(a)(8).

         RECEIVABLE(S) PURCHASE AGREEMENT means that certain Receivable(s)
Purchase Agreement dated October 19, 1999 by and among SCTSC and certain of the
Debtors, as amended or modified.

         PRO RATA SHARE means, as to a particular Claimholder or Interestholder,
the ratio that the amount of the Claim or Equity Interest held by such
Claimholder or Interestholder bears to the total amount of all Claims held by
Claimholders or Interestholders within the same Class of Claims or Equity
Interests. Such ratio shall be calculated as if all Disputed Claims or Disputed
Equity Interests were Allowed Claims or Equity Interests as of the Effective
Date, unless specifically provided otherwise by the Plan.

         PROFESSIONAL means a professional employed in the Bankruptcy Case under
Bankruptcy Code sections 327 and 1103.

         PROFESSIONAL FEE CLAIM means a Claim for compensation or reimbursement
of expenses of a Professional retained in the Debtors' case, any chapter 11
trustee, and requested in accordance with the provisions of Bankruptcy Code
sections 326, 327, 328, 330, 331, 503(b) and 1103.

         REJECTION CLAIM BAR DATE means the first Business Day that is thirty
(30) days after the Confirmation Date.

         REJECTION SCHEDULE means those Executory Contracts to be rejected by
the Debtors at the Confirmation Hearing as identified on a schedule to be filed
with the Bankruptcy Court on or before the Disclosure Statement Approval Date.

         RESERVES means collectively the Administrative Claims Reserve, the
Priority Claims Reserve, the Disputed Claims Reserve, and the Operating Reserve,
and any other reserve required by the Plan.

<PAGE>
         RIGHTS OF ACTION means any and all claims, debts, demands, rights,
defenses, actions, causes of action, suits, contracts, agreements, obligations,
accounts, defenses, offsets, powers, privileges, licenses and franchises of any
kind or character whatsoever, known or unknown, suspected or unsuspected,
whether arising before, on, or after the Petition Date, in contract or in tort,
at law or in equity, or under any other theory of law, of the Debtors or their
Estates, including (i) rights of setoff, counterclaim, or recoupment, and claims
on contracts or for breaches of duties imposed by law, (ii) claims pursuant to
Bankruptcy Code section 362, (iii) such claims and defenses as fraud, mistake,
duress, and usury, and (iv) all Avoidance Actions.

         SCHEDULES OF ASSETS AND LIABILITIES means the schedules of assets and
liabilities as may be amended and filed by the Debtors in their bankruptcy
cases.

         SCTSC means Standard Chartered Trade Services Corporation, a Delaware
corporation and subsidiary of Standard Chartered Bank.

         SEC means the Securities and Exchange Commission.

         SECURED CLAIM means a Claim for which a Claimant asserts a valid,
perfected, and enforceable Lien, not subject to avoidance or subordination under
the Bankruptcy Code or applicable non-bankruptcy law, or a Claim for which a
Claimant asserts a setoff under Bankruptcy Code section 553, but only to the
extent of the value, determined in accordance with Bankruptcy Code section
506(a), of the Claimant's interest in the Debtors' interest in Estate Property
or to the extent of the amount subject to such setoff, as the case may be,
unless a timely election has been made under Bankruptcy Code section 1111(b)(2).

         SECURED TAX CLAIM means a Secured Claim for taxes held by a
Governmental Unit, including cities, counties, school districts, and hospital
districts, (i) entitled by statute to assess taxes based on the value or use of
real and personal property and/or to obtain a Lien against such property to
secure payment of such taxes; or (ii) entitled to obtain a Lien on property to
secure payment of any tax claim specified in Bankruptcy Code section 507(a)(8).

         SENIOR NOTE CLAIM means an Unsecured Claim arising pursuant to the
Senior Notes.

         SENIOR NOTE INDENTURE means that certain First Supplemental Indenture
dated October 1, 1999, between the applicable Debtors, as issuers, and the
Indenture Trustee concerning the issuance of the Senior Notes.

         SENIOR NOTES means the 11% Senior Notes due 2009 issued by EOTT Energy
Partners, L.P. and EOTT Energy Finance Corp. pursuant to that First Supplemental
Indenture, dated October 1, 1999.

         STANDARD CHARTERED BANK means Standard Chartered Bank plc, a banking
institution organized and existing under the laws of England and Wales.

         SUBORDINATED UNIT means a subordinated unit interest in EOTT that
entitles the holder thereof to participate in distribution and exercise the
rights and privileges under the EOTT Partnership Agreement.

<PAGE>

         TRADE PARTNER means a Creditor from whom the Debtors purchase, or to
whom the Debtors sell, crude oil products.

         TRADE PARTNER SECURED CLAIM means a Secured Claim held by a Trade
Partner.

         TREASURY REGULATIONS means the regulations promulgated under the
Internal Revenue Code by the Department of the Treasury of the United States.

         UNSECURED CLAIM means a Claim that is not a Secured Claim. The term
specifically includes any tort Claims or contractual Claims or Claims arising
from damage or harm to the environment and, pursuant to section 506(a) of the
Bankruptcy Code, any Claim of a Creditor against the Debtors to the extent that
such Creditor's Claim is greater than the value of the Lien securing such Claim,
any Claim for damages resulting from rejection of any Executory Contract under
Bankruptcy Code section 365, and any Claim not otherwise classified under the
Plan.

<PAGE>
                                    EXHIBIT B

                ENRON SETTLEMENT AGREEMENT AND RELATED DOCUMENTS

                       (Included as part of Exhibit 10.2)
<PAGE>
                                    EXHIBIT C

                   TERM SHEET FOR NEW INDENTURE AND NEW NOTES

                       (Included as part of Exhibit 2.1)

<PAGE>
                                    EXHIBIT D

                           TERM SHEET FOR LLC WARRANTS

                       (Included as part of Exhibit 2.1)

<PAGE>
                                    EXHIBIT E

                       TERM SHEET FOR EXIT CREDIT FACILITY

             (This Document Has Not Been Prepared Or Entered Into.)
<PAGE>
                                    EXHIBIT F

                    TERM SHEET FOR AMENDED EOTT LLC AGREEMENT

                       (Included as part of Exhibit 2.1)
<PAGE>

                                    EXHIBIT G

                   ORDER APPROVING ENRON SETTLEMENT AGREEMENT

             (This Document Has Not Been Prepared Or Entered Into.)

<PAGE>
                                    EXHIBIT B

                           ENRON SETTLEMENT AGREEMENT

                       (Included as part of Exhibit 10.2)
<PAGE>
                                    EXHIBIT C

                          TERM SHEET FOR LLC AGREEMENT

<Table>
<S>                                         <C>
Name:                                       To be selected by holders of a
                                            majority in principal amount of Old
                                            Notes.

State of formation:                         Delaware.

Tax status:                                 LLC Newco will elect to be taxed as
                                            a partnership.

                                BOARD OF MANAGERS

Size:                                       Initially seven, which may be
                                            increased or decreased by action of
                                            the Board, provided that no decrease
                                            will have the effect of shortening
                                            the term of a Manager.

Term:                                       Each Manager shall serve from the
                                            date of election until the next
                                            annual meeting of Managers, unless
                                            the Manager shall resign or be
                                            removed in accordance with the LLC
                                            Agreement.

Initial Board:                              The Chief Executive Officer and six
                                            additional persons selected by
                                            holders of a majority principal
                                            amount of the Old Notes.

Election:                                   Managers shall be elected by the
                                            vote of holders of LLC Units
                                            entitled to vote thereon at an
                                            annual meeting or at special meeting
                                            called for the purpose of electing
                                            Managers. Managers shall be elected
                                            by the vote of holders of a
                                            plurality of the LLC Units voting at
                                            a meeting at which a quorum is
                                            present.

Removal:                                    Managers may be removed, with or
                                            without cause, by holders of a
                                            majority of the LLC Units
                                            outstanding at a meeting held for
                                            the purpose of removing Managers.

Board action:                               A majority of Managers present at a
                                            meeting shall constitute a quorum,
                                            and the action by a majority of
                                            Managers present at a meeting at
                                            which a quorum is present will
                                            constitute action of the Board of
                                            Managers.

Written consent:                            The Board of Managers may act by a
                                            written consent signed by all of the
                                            Managers then in office.
</Table>

<PAGE>
<Table>
<S>                                         <C>
Vacancies:                                  Vacancies may be filled by the
                                            Members at an annual meeting or a
                                            meeting called for that purpose, or
                                            by a majority of the Managers on the
                                            Board of Managers, even if less than
                                            a quorum.

Compensation:                               Members of the Board of Managers
                                            shall be entitled to such
                                            compensation as they shall
                                            determine.

Committees:                                 The Board of Managers may establish
                                            such committees as it determines. A
                                            committee shall have such powers of
                                            the Board of Managers as is set
                                            forth in the resolutions
                                            establishing the committee.

                                    OFFICERS

Title:                                      The Board of Managers may establish
                                            such officer positions as it deems
                                            appropriate, and appoint such
                                            persons to hold such offices as it
                                            deems appropriate.

Tenure:                                     Officers shall serve at the
                                            discretion of the Board of Managers.

Compensation:                               The officers shall be entitled to
                                            such compensation as the Board of
                                            Managers determines. The Board of
                                            Managers may delegate its authority
                                            to establish compensation of
                                            officers to one or more officers.

                           MEMBERS AND CAPITALIZATION

LLC Common Units                            The common equity interest in LLC
                                            Newco shall be divided into LLC
                                            Common Units. Each LLC Common Unit
                                            shall have the right to one vote on
                                            all matters submitted to a vote of
                                            LLC Common Unit holders, and shall
                                            be entitled to such distributions as
                                            the Board of Managers determines
                                            from time to time, subject to the
                                            rights of holders of any outstanding
                                            LLC Preference Units. Holders of LLC
                                            Common Units shall be entitled to
                                            all distributions in liquidation
                                            after payment of creditors and
                                            holders of LLC Preference Units. The
                                            Board of Managers may issue LLC
                                            Common Units from time to time to
                                            such persons and for such
                                            consideration as determined by the
                                            Board of Managers.

LLC Preference Units                        The Board of Managers may, from time
                                            to time, issue one or
</Table>

<PAGE>

<Table>
<S>                                         <C>
                                            more series or classes of LLC
                                            Preference Units which entitle
                                            holders thereof to preferences over
                                            LLC Common Units or other series or
                                            classes of LLC Preference Units as
                                            to distributions and liquidating
                                            distributions. LLC Preference Units
                                            may have such voting rights, if any,
                                            as is determined by the Board of
                                            Managers. The rights and preferences
                                            of LLC Preference Units shall be set
                                            forth in a certificate of
                                            designation approved by the Board of
                                            Managers, which shall be deemed to
                                            be an amendment of the LLC
                                            Agreement. The LLC Common Units and
                                            LLC Preference Units are
                                            collectively called the LLC Units.

Convertible securities:                     The Board of Managers may issue
                                            options, warrants and other
                                            securities convertible into, or
                                            exchangeable for, LLC Units.

Transferability:                            LLC Units will be transferable
                                            without restriction, subject to
                                            applicable securities laws.
                                            Transferees of LLC Units will have
                                            all voting, distribution and other
                                            rights of the transferee.

                                OTHER PROVISIONS

Amendment:                                  The LLC Agreement may be amended by
                                            the approval of the Board of
                                            Managers and the affirmative vote of
                                            holders of a majority of LLC Units
                                            outstanding and entitled to vote on
                                            such amendment. In connection with
                                            the issuance of LLC Preference
                                            Units, the Board of Managers may
                                            grant rights to holders of LLC
                                            Preference Units to approve
                                            amendments affecting the rights of
                                            the holders of LLC Preference Units.

Indemnity:                                  The LLC Agreement will provide for
                                            indemnification of the Holders,
                                            Standard Chartered, SCTSC and
                                            Lehman, as defined in the
                                            Restructuring Agreement to which
                                            this term sheet is attached as
                                            Exhibit C, and their respective
                                            officers, directors, employees,
                                            partners and affiliates.
</Table>

<PAGE>

                                    EXHIBIT D

                     TERM SHEET FOR NEW INDENTURE AND NOTES
                       $100,000,000 SENIOR NOTES DUE 2010

                        Included as Part of Exhibit 2.1
<PAGE>

                                    EXHIBIT E

                             TERM SHEET FOR WARRANTS

                        Included as Part of Exhibit 2.1
<PAGE>
                                    EXHIBIT F

                TERM SHEET FOR NEW CREDIT FACILITY AND DEBTOR IN
                        POSSESSION FINANCING AGREEMENT(S)

                                       28
<PAGE>
                                EOTT PARTNERSHIPS
                    DEBTOR IN POSSESSION FINANCING TERM SHEET

Borrowers:           1. Under the LC Facility and the Term Loan Facility
                        (each as defined below): EOTT Energy Operating Limited
                        Partnership ("EOTT OLP"), EOTT Canada Limited
                        Partnership ("EOTT Canada"), EOTT Energy Liquids, L.P.
                        ("EOTT Liquids"), and EOTT Energy Pipeline Limited
                        Partnership ("EOTT Pipeline"), as debtors and debtors in
                        possession in Chapter 11 cases filed in the United
                        States Bankruptcy Court for the Southern District of
                        Texas, Corpus Christi Division (the "Bankruptcy Court").
                        The obligations of the Borrowers will be joint and
                        several.

                     2. Under the SCTSC Purchase Agreements (as defined
                        below): EOTT OLP, as debtor and debtor in possession in
                        the Cases.

Guarantors:          1. Under the LC Facility and the Term Loan Facility
                        (each as defined below): EOTT Energy Partners, LP,
                        ("EOTT MLP") and EOTT Energy General Partner, L.L.C.
                        ("EOTT GP") will each unconditionally and irrevocably
                        guarantee the obligations of the Borrowers. EOTT MLP and
                        EOTT GP will also be debtors and debtors in possession
                        in Chapter 11 cases filed in the Bankruptcy Court, and
                        their cases, plus those of the Borrowers, are referred
                        to in this term sheet as the "Cases."

                     2. Under the SCTSC Purchase Agreements (as defined
                        below): None.

Letter of Credit:    Standard Chartered Bank ("SCB") will act as the issuer
Issuer, Agent and    of letters of credit (the "LC Issuer"). SCB and its
Participants:        successors and assigns will be participants in the
                     letter of credit risk (the "LC Participants") and SCB
                     will be the agent for the LC Participants (the "LC
                     Agent").

Term Lenders and     Lehman Commercial Paper Inc. and its successors and
Agent:               assigns will be the term lenders (the "Term Lenders").
                     Lehman Brothers Inc. will act as agent for the Term
                     Lenders (the "Term Lender Agent" and, with the LC Agent,
                     the "Administrative Agents").

                                       1
<PAGE>
Trade Finance:       Standard Chartered Trade Services Corporation ("SCTSC")
                     will offer $175,000,000 of funding under the SCTSC
                     Purchase Agreements referred to below.

Collateral Agent:    SCB will act as collateral agent (the "Collateral
                     Agent") on behalf of the LC Issuer, the LC Participants,
                     SCTSC, the Term Lenders and the Administrative Agents.

Letter of Credit     Upon entry of the Second Interim Financing Order (as
Facility:            defined below), the LC Issuer and LC Participants will
                     provide the Borrowers with a $325,000,000 letter of
                     credit facility (the "LC Facility"). Letters of credit
                     issued thereunder are the "Letters of Credit;" Letters
                     of Credit outstanding in excess of $300,000,000 (up to a
                     maximum amount of $325,000,000) are the "Tier A Letters
                     of Credit" and Letters of Credit outstanding in the
                     aggregate amount of $300,000,000 or less are the "Tier B
                     Letters of Credit".

Term Loan Facility:  A term loan facility (the "Term Loan Facility") consisting
                     of $50,000,000 Tier A Term Loans ("Tier A Term Loans") and
                     $25,000,000 Tier B Term Loans ("Tier B Term Loans" and,
                     collectively with the Tier A Term Loans, the "Term Loans").

Crude Oil Purchase   $75,000,000 Commodities Repurchase Agreement, dated as
Agreement:           of February 28, 1998 (as amended as of June 22, 2001 and
                     April 23, 2002, the "Crude Oil Purchase Agreement"; and
                     as further amended on or prior to the Closing Date by
                     the Modification of Commodity Repurchase Agreement, the
                     "Amended Crude Oil Purchase Agreement") between EOTT OLP
                     and SCTSC.

                     Pursuant to the Crude Oil Purchase Agreement, SCTSC has
                     purchased from EOTT OLP certain barrels of crude oil
                     that constitutes EOTT OLP's line fill in various
                     pipelines. The aggregate amount of the Purchase Prices
                     (as defined therein) thereunder is not permitted to
                     exceed $100,000,000 at any time. EOTT OLP is presently
                     contractually obligated to repurchase the line fill from
                     SCTSC on October 23, 2002.

                     Pursuant to the Amended Crude Oil Purchase Agreement,
                     the size of the facility thereunder shall be reduced to
                     $75,000,000. EOTT OLP will not be contractually
                     obligated to repurchase all or a

                                       2
<PAGE>
                     portion of the line fill from SCTSC until March 31, 2003
                     and shall have the right to use the line fill in its
                     business in the interim. The aggregate amounts outstanding
                     under the Amended Crude Oil Purchase Agreement will be
                     reduced if EOTT OLP (a) elects to repurchase the line fill
                     prior to March 31, 2003, or (b) fails to either (i)
                     maintain a hedge contract at a price and amount and
                     otherwise in form and substance satisfactory to SCTSC from
                     a counterparty acceptable to SCTSC or (ii) secure the
                     repurchase price for the line fill with one or more letters
                     of credit in favor of SCTSC issued by a bank acceptable to
                     SCTSC at a stated amount satisfactory to SCTSC.

                     In the event that EOTT OLP elects to maintain a hedge
                     contract, EOTT OLP shall collaterally assign such hedge
                     contract to SCTSC. SCTSC shall purchase the crude oil at
                     the hedge price less the discount rate and the
                     repurchase price shall be equal to the hedge price (or
                     such other price as may be agreed to by EOTT OLP and
                     SCTSC). If the hedge matures prior to the repurchase
                     date, then EOTT OLP shall replace the hedge at maturity
                     with another hedge contract in form and substance
                     satisfactory to SCTSC at a hedge price equal or higher
                     than the repurchase price (or such other price as may be
                     agreed to by EOTT OLP and SCTSC).

                     To the extent that SCTSC does not recover its
                     investments and associated interest, yield, fees and
                     collection costs or other costs under the Amended Crude
                     Oil Purchase Agreement from the sale of the line fill
                     subject thereto, EOTT OLP's repurchase obligation is a
                     "Tier B Repurchase Obligation."

Receivables          $100,000,000 Restated Receivables Purchase Agreement,
Purchase Agreement:  dated as of October 19, 1999 (as amended as of January
                     12, 2000 and April 23, 2002, the "Receivables Purchase
                     Agreement"; and as further amended on or prior to the
                     Closing Date by the Modification of Receivables Purchase
                     Agreement, the "Amended Receivables Purchase Agreement")
                     between EOTT OLP and SCTSC. (The Amended Receivables
                     Purchase Agreement and the Amended Crude Oil Purchase
                     Agreement shall collectively be defined as the "SCTSC
                     Purchase Agreements".)

                                       3
<PAGE>

                     Pursuant to the Receivables Purchase Agreement, SCTSC
                     has purchased from EOTT OLP certain major accounts
                     receivable that are paid monthly and are anticipated to
                     be paid on or about October 20 and November 20, 2002.

                     The Amended Receivables Purchase Agreement will give
                     SCTSC the right to collect these receivables, return to
                     EOTT OLP the excess over SCTSC's investment, and
                     continue to purchase and collect these receivables (and
                     return the contractual excess amount) on a monthly basis
                     for a monthly payment of $50,000,000 (or such lesser
                     amount as EOTT OLP may request) until the Maturity Date,
                     provided that no more than $100,000,000 in unrecovered
                     investments will be outstanding at any time. To the
                     extent, if any, that the amounts requested by EOTT OLP
                     exceed 90% of the subject receivables, EOTT OLP will be
                     entitled to post a Letter of Credit (subject to
                     applicability of availability restrictions) in the
                     amount of such excess for the benefit of SCTSC and then
                     receive the excess funds. To the extent that SCTSC does
                     not recover its investments and associated interest,
                     yield, fees and collection costs or other costs under
                     the Receivables Purchase Agreement from collection of
                     the receivables subject thereto (or from any such Letter
                     of Credit), EOTT OLP's unsatisfied obligation is a "Tier
                     B Repurchase Obligation."

DIP Facilities and   The SCTSC Purchase Agreements, the Term Loans and the LC
DIP Lenders;         Facility are collectively called the "DIP Facilities."
Prepetition Lenders  and the LC Issuer, the LC Participants, the Term Lenders,
                     the Administrative Agents, the Collateral Agent and SCTSC
                     are collectively called the "DIP Lenders".

                     "Prepetition Lenders" means (a) SCB, in its capacity as
                     lender, issuer of letters of credit (the "Prepetition
                     LCs"), and administrative agent under the Second Amended
                     and Restated Reimbursement, Loan and Security Agreement
                     dated as of April 23, 2002 among the Borrowers and SCB
                     (as amended, the "Prepetition Credit Agreement"), and
                     (b) SCTSC, to the extent, if any, that it is found to be
                     a lender under either of the predecessor agreements to
                     the SCTSC Purchase Agreements.

Closing Date:        Closing of the DIP Facilities will occur promptly after
                     entry by the Bankruptcy Court of a second interim DIP
                     financing order (the

                                       4
<PAGE>
                     "Second Interim Financing Order") in form and substance
                     acceptable to the Administrative Agents, authorizing and
                     approving the DIP Facilities and the other transactions
                     described herein and granting superpriority claim status
                     and the liens and security interests contemplated hereby.
                     The Second Interim Financing Order must not have been
                     modified, reversed, amended or stayed on the Closing Date,
                     and the Closing Date must occur on or before October 18,
                     2002.

Maturity Date:       The "Maturity Date" will be the earlier of March 31,
                     2003 (the "Stated Maturity Date") and the effective date
                     of a plan for reorganization of the Borrowers. The
                     Letters of Credit shall not have expiry dates after the
                     Stated Maturity Date. Unless extended as provided below,
                     the Term Loans will mature and become due and payable in
                     full in cash on the Maturity Date. Unless the LC
                     Facility is extended as provided below, any Letters of
                     Credit outstanding on the Maturity Date must be cash
                     collateralized at that time in an amount reasonably
                     acceptable to the LC Agent.

Purpose and          The Letters of Credit will be issued at the Borrowers'
Availability of      application for the benefit of (a) their critical crude
Letters of Credit:   oil suppliers and other vendors in order to preserve the
                     Borrowers' ongoing trading and other businesses, (b)
                     Enron Corp., in the amount and as required pursuant to
                     the terms of the Settlement Agreement (as referred to
                     below) and (c) SCTSC or any other party as otherwise
                     agreed to by the LC Agent. The Letters of Credit will be
                     issued at the Borrowers' application from the Closing
                     Date until the Maturity Date, so long as the aggregate
                     outstanding amount thereof does not exceed the "LC
                     Availability," which is the remainder of (a) the lesser
                     of $325,000,000 and the then applicable Borrowing Base,
                     minus (b) the sum of (i) the aggregate amount available
                     for drawing, or drawn and unpaid, under all Letters of
                     Credit, (ii) the aggregate amount available for drawing,
                     or drawn and unpaid, under the Prepetition LCs plus all
                     outstanding loans under the Prepetition Credit
                     Agreement, and (iii) the Carve-Out Reserve referred to
                     below.

                     The Borrowing Base will be calculated in a way similar
                     to that provided in the Prepetition Credit Agreement;
                     provided, that any assets that are subject to a
                     successful lien challenge (with respect to any of the
                     liens granted under the Prepetition Credit Agreement

                                       5
<PAGE>
                     or the DIP Financing Documents) shall be excluded from the
                     Borrowing Base.

Roll Up:             In consideration of the use of Prepetition LCs to
                     support payment obligations of the Borrowers that come
                     due and, in part, accrue after commencement of the
                     Cases, and in order to allow the Borrowers continuing
                     access to the full amount of the LC Facility, the Second
                     Interim Financing Order will authorize the payment of
                     prepetition revolving credit loans under the Prepetition
                     Credit Agreement, as provided below, and will provide
                     that all Prepetition LCs, and all reimbursement
                     obligations, fees and indemnities related thereto, are
                     upon entry thereof converted into postpetition Letters
                     of Credit and reimbursement obligations, fees and
                     indemnities related thereto.

Purpose and          The Term Loans will be used to provide working capital
Availability of      to the Borrowers, in accordance with the budget and
Term Loans:          budget process approved by the Bankruptcy Court and to
                     pay up to $40,000,000 in prepetition revolving credit
                     loans outstanding under the Prepetition Credit
                     Agreement. The proceeds of the Term Loans will be
                     available in a single drawing on the Closing Date or on
                     the first business day thereafter.

Purpose and          The Crude Oil Purchase Agreement will allow EOTT OLP to
Availability of      use ts line fill until the required repurchase date and
SCTSC Purchase       will defer the required repurchase thereof until that
Agreements:          time. Monthly payments under the Receivables Purchase
                     Agreement will be used to provide working capital to
                     EOTT OLP in accordance with the budget and budget
                     process approved by the Bankruptcy Court, and these
                     payments will be available on the first business day of
                     each month.

Claims and Security  Subject to the rights of the Borrowers and the
Interests:           Guarantors set forth in the "Reservation of Rights"
                     paragraph below, the Borrowers and the Guarantors shall
                     acknowledge and agree that (a) they have no claims or
                     causes of action (including, without limitation,
                     avoidance actions) against the agent or the lenders
                     under the Prepetition Credit Agreement (or any of their
                     directors, officers, employees or agents), (b) they have
                     no offset right, counterclaim or defense of any kind
                     against any of its obligations, indebtedness or
                     liabilities to the agent or the lenders under the
                     Prepetition Credit Agreement, (c) the agent and the
                     lenders under the Prepetition Credit Agreement have
                     valid first priority perfected liens on the

                                       6
<PAGE>
                     prepetition collateral described in their mortgages and
                     security agreements and that there have been no past
                     conditions, acts, omissions, events, circumstances or
                     matters which have impaired or adversely affected any of
                     the agent's or the lenders' rights, interests and title
                     under the Prepetition Credit Agreement with respect to such
                     prepetition collateral and (d) the agent and the lenders
                     under the Prepetition Credit Agreement have properly
                     performed and satisfied in a timely manner all of their
                     obligations to the Borrowers.

Reservation of       The Borrowers and the Guarantors shall retain their
Rights:              rights, if any, to object to or challenge within 30 days
                     following the petition date (a) the validity, extent or
                     priority of the security interests and liens securing
                     indebtedness under the Prepetition Credit Agreement or
                     (b) the validity, allowability or status of the
                     indebtedness under the Prepetition Credit Agreement.

Letter of Credit     Letter of credit fees shall be equal to the product of
Fees:                (a) the Applicable Margin times (b) the Average Daily
                     Maximum Drawing Amount. The Applicable Margin will be:

                     o  2.75% for any month in which the Average Daily Maximum
                        Drawing Amount is $325,000,000 or less but in excess of
                        $250,000,000,

                     o  2.50% for any month in which the Average Daily Maximum
                        Drawing Amount is $250,000,000 or less but in excess of
                        $200,000,000, and

                     o  2.25% for any month in which the Average Daily Maximum
                        Drawing Amount is $200,000,000 or less.

                  All letter of credit fees shall be payable to the LC Agent for
                  the account of the LC Participants monthly in arrears on the
                  last business day of the next following month. The Average
                  Daily Maximum Drawing Amount will be defined in the SCB DIP
                  Credit Agreement but will generally be the average exposure of
                  the LC Issuer on all outstanding Letters of Credit or drawn
                  and unreimbursed Letters of Credit (including converted
                  Prepetition LCs) during the month in question.

                  In addition, the Borrowers will pay to the LC Issuer for its
                  own account at the time each Letter of Credit is issued (a) a
                  fronting fee equal to the greater of (i) $250 and (ii) 0.25%
                  per annum times the face amount of such Letter of Credit, and
                  (b) a minimum administrative issuance fee and

                                       7
<PAGE>
                  the other fees and charges that the LC Issuer customarily
                  charges for the issuance, amendment or drawing of any letter
                  of credit in accordance with its published schedule of such
                  charges as from time to time in effect.

                  A commitment fee of 0.5% per annum will be payable monthly in
                  arrears on the unused amount of the LC Availability with a
                  final payment upon the Maturity Date.

                  An arrangement fee will be payable to the LC Agent, for its
                  own account, monthly in arrears on the first day of each month
                  with respect to the immediately preceding month in an amount
                  equal to (a) 1% per annum multiplied by (b) the Average Daily
                  Maximum Facility Amount per month. The "Average Daily Maximum
                  Facility Amount" for any month shall equal the quotient of (x)
                  the maximum commitment under the LC Facility as it exists at
                  5:00 p.m., New York time, for each day in the month divided by
                  (y) the total number of days in such month. The first
                  installment of such fee shall be payable on November 30, 2002
                  with a final payment upon the Maturity Date.

Interest Rates    The interest rate on the Tier A Term Loans will be 9% per
and Fees on       annum, payable monthly on the last business day of each month.
Term Loans:       The interest rate on the Tier B Term Loans will be 10% per
                  annum, payable monthly on the last business day of each month.
                  A facility fee of $750,000 will be fully earned and paid on
                  the Closing Date to the Term Loan Agent for the account of the
                  Term Lenders.

                  An additional facility fee of $2,000,000 will be fully earned
                  on the Closing Date and will be due and payable at the
                  Borrowers' option on the Closing Date or on the Maturity Date
                  (or, if sooner, at the prepayment in full of the Term Loans).
                  If the Term Loans are prepaid in full prior to the Maturity
                  Date, the amount of this additional facility fee will be
                  reduced by $1,000,000.

                  An arrangement fee of $100,000 will be fully earned and paid
                  on the Closing Date to the Term Loan Agent for its own
                  account.

                                       8
<PAGE>
Yield and Fees    The purchase of crude oil under the Amended Crude Oil Purchase
on SCTSC          Agreement will be at a discounted price that gives SCTSC an
Purchase          effective per annum yield equal to LIBOR on the day in
Agreements:       question plus 3.0%. The interest period for LIBOR shall be for
                  the entire period from the Closing Date to the Stated Maturity
                  Date. If all of the line fill purchased by SCTSC is
                  repurchased by EOTT OLP prior to the Stated Maturity Date, the
                  repurchase price shall be adjusted appropriately (a) so that
                  the effective per annum yield equals LIBOR plus 3.0% and (b)
                  to include any breakage costs. As used herein, "LIBOR" shall
                  have the meaning given to it in the Prepetition Credit
                  Agreement.

                  The purchase of each month's receivable wider the Amended
                  Receivables Purchase Agreement will be at a discounted price
                  that gives SCTSC an effective per annum yield equal to monthly
                  LIBOR on the day in question plus 3.0%.

                  A facility fee in an amount equal to (a) 1% per annum
                  multiplied by (b) the aggregate commitments of SCTSC from time
                  under the SCTSC Purchase Agreements (initially $175,000,000)
                  will be payable to SCTSC monthly in arrears.

Default Rates:    Upon the occurrence and during the continuance of an Event of
                  Default under the SCB DIP Credit Agreement, the Lehman DIP
                  Credit Agreement or the SCTSC Purchase Agreements, as
                  applicable:

                  o  the Term Loans shall bear interest at 12% per annum;

                  o  the rate otherwise applicable on the Letters of Credit fees
                     shall be increased by 2% per annum; and

                  o  the discount factor used for the SCTSC Purchase Agreements
                     shall be increased by 2% per annum.

Calculations      All computations of interest and fees shall be based on a
and Payments:     360-day year and the actual number of days elapsed. All
                  payments shall be made in United States dollars in immediately
                  available funds. All payments, other than fees payable on the
                  Closing Date or at the extension of the DIP Facilities, shall
                  be paid to the Collateral Agent for application in accordance
                  with the Cash Waterfall described below.

Extension Option: On a date which is no earlier than the effective date of the
                  Borrowers' plan of reorganization and no later than March 31,
                  2003 (the "Extension Date"), the Borrowers may extend (a) the
                  Term Facility and the LC Facility until a date no later than
                  September 30, 2004 and (b) the

                                       9
<PAGE>
                  SCTSC Purchase Agreements until a date no later than September
                  30, 2003 (each such period being referred to as the "Extension
                  Period"), in each case upon payment of the extension fees
                  described below and on terms substantially similar to the DIP
                  Facilities, with details to be negotiated.

                  The fees for so extending are as follows:

                  o  For the Term Loans: $750,000, payable to the Term Loan
                     Agent on the Extension Date;

                  o  For the LC Facility: $1,250,000, payable to the LC Agent on
                     the Extension Date; and

                  o  For the SCTSC Purchase Agreements: 1.0% per annum of the
                     maximum commitment under the SCTSC Purchase Agreements on
                     the Extension Date, payable to SCTSC on the Extension Date.

Fees under the    In addition to the extension fee for the LC Facility referred
LC Facility       to in the above paragraph, during the Extension Period for the
during the        LC Facility, the fees payable under the LC Facility shall
Extension         include the following:
Period:

                  1. Commitment Fee.

                     A commitment fee shall be payable in the amount of 0.5%
                     per annum on the average daily unused amount of the LC
                     Facility. The commitment fee will be due and payable in
                     arrears on the last day of each month and at the
                     termination of the LC Facility.

                  3. LC Agent's Arrangement Fee.

                     The Borrowers will pay to the LC Agent, for its own
                     account, an arrangement fee, payable monthly in arrears
                     on the first day of each month with respect to the
                     immediately preceding month in an amount equal to (a) 1%
                     per annum multiplied by (b) the Average Daily Maximum
                     Facility Amount per month. The first installment of such
                     fee shall be payable on the day following the last day
                     of the first month following the Extension Date, with a
                     final payment upon termination of the LC Facility.

                                       10
<PAGE>
                  4. Change of Control Fee.

                     A change of control fee in the amount of $250,000 shall
                     be payable to the LC Agent for its own account upon the
                     change of control (to be defined) of the Borrowers.

                  5. Reduction Fee.

                     A reduction fee in the amount of $2,500,000 shall be
                     payable to the LC Agent for its own account on the date
                     which is the earlier of (a) twelve (12) months from the
                     Extension Date and (b) eighteen (18) months from
                     September 29, 2002, if on such date there has not been a
                     permanent reduction in the aggregate exposure of SCB and
                     SCTSC under all facilities provided to the Borrowers to
                     $200,000,000 or less. Such permanent reduction may be
                     accomplished either by assignment or reduction of the
                     commitments thereunder.

Cash Waterfall    Using the Borrowers' and Guarantors' present cash management
and Account       system and accounts (to the extent reasonably practical and
Structure:        approved by the Bankruptcy Court), the following account
                  structure will be established. All accounts will be under the
                  control of the Collateral Agent and will, together with all
                  deposits and investments associated therewith, constitute part
                  of the Collateral. The accounts will include:

                  o  one or more collection accounts, into which all receipts
                     of the Borrowers and the Guarantors will be deposited;

                  o  a concentration account maintained with the Collateral
                     Agent, into which all deposits in the collections
                     accounts will be transferred periodically;

                  o  a debt service payment account, into which the
                     Collateral Agent will deposit all amounts required to be
                     paid on, or held as cash collateral for, the DIP
                     Facilities;

                  o  one or more special collateral accounts (which may be
                     separate accounts or subaccounts of the debt service
                     payment account), into which the Collateral Agent will
                     transfer funds from the debt service payment account
                     that are not to be immediately paid to the DIP Lenders;
                     and

                  o  one or more operating accounts, into which the
                     Collateral Agent will transfer funds from the
                     concentration account to the extent that they are not
                     required to be deposited into the debt service payment
                     account.

                                       11
<PAGE>
                  As funds are transferred into the Concentration Account, the
                  Collateral Agent will make transfers into the debt service
                  payment account as described above and will use those funds,
                  to the extent thereof, to make payments and deposits of cash
                  collateral required under the DIP Facilities. Payments
                  required in connection with the Tier A Letters of Credit and
                  the Tier A Term Loans will have priority over payments and
                  deposits required in connection with the Tier B Letters of
                  Credit, the Tier B Term Loans, and the Tier B Repurchase
                  Obligations, subject to certain specific exceptions.

                  After making all required transfers into the debt service
                  payment account, the Collateral Agent will transfer the
                  remaining funds into the operating accounts, to be used by the
                  Borrowers and Guarantors in accordance with all applicable
                  budget orders and other orders of the Bankruptcy Court.

                  The proceeds from the sale of the line fill and collection of
                  the accounts subject to the SCTSC Purchase Agreements will be
                  paid directly to SCTSC, and after recovery of its investments
                  and associated interest, yield, fees and collection costs or
                  other costs thereunder, SCTSC will transfer any remainder to
                  the concentration account or debt service payment account
                  maintained by the Collateral Agent. Any payments received by
                  EOTT OLP, Lehman or SCB in contravention of this arrangement
                  shall be turned over immediately to SCTSC.

Mandatory         All proceeds from the sale of the Borrowers' MTBE, Grid
Prepayments:      Storage and West Coast businesses shall be deposited into the
                  debt service payment account. The first $75,000,000 of these
                  proceeds shall be applied, at the option of SCTSC, to
                  repurchase the crude oil subject to the Amended Crude Oil
                  Purchase Agreement and to permanently reduce the fundings
                  thereunder by the amounts so applied. Any proceeds in excess
                  of $75,000,000 will be applied to prepay the Tier A Term
                  Loans, or, if the remaining amount of these proceeds is less
                  than $5,000,000, deposited into the concentration account.

                  All proceeds from the incurrence of additional indebtedness or
                  the issuance of additional equity shall be used first, to
                  prepay the Tier A Term Loans and any reimbursement obligations
                  for drawings that have been made on the Tier A Letters of
                  Credit, on a pro rata basis, at par plus accrued interest and
                  then second, to prepay the Tier B Term Loans and

                                       12
<PAGE>
                  any reimbursement obligations for drawings that have been made
                  on the Tier B Letters of Credit, on a pro rata basis, at par
                  plus accrued interest.

                  The Cash Waterfall will provide for cash collateral to be
                  reserved by the Collateral Agent to the extent that
                  outstandings under the LC Facility exceed availability
                  limitations thereunder.

Optional          Subject to compliance with all applicable orders of the
Prepayments:      Bankruptcy Court and approval of SCB and SCTSC, the Borrowers
                  may prepay the Term Loans at any time at par plus accrued
                  interest in $5,000,000 minimum increments. Any such payments
                  shall be applied first to the Tier A Term Loans and then to
                  the Tier B Term Loans.

Security:         Subject to the Carve-Out Reserve described below, the DIP
                  Facilities and all obligations of the Borrowers and the
                  Guarantors in connection therewith will be:

                  o  entitled to the superpriority claim status pursuant to
                     Section 364(c)(l) of the Bankruptcy Code senior to any
                     superpriority claim granted as adequate protection in
                     respect of the Prepetition Lenders and any other claims
                     of any entity, including, without limitation, any claims
                     under Sections 503, 507, 1113, and 1114 of the
                     Bankruptcy Code; and

                  o  secured by a first priority perfected priming security
                     interest and lien granted to the Collateral Agent
                     burdening all of the properties and assets of whatever
                     kind of the Borrowers, the Guarantors and their
                     respective estates, whether now owned or hereafter
                     acquired (the "Collateral") pursuant to Sections
                     364(c)(2) and (3) and 364(d) of the Bankruptcy Code,
                     senior in priority to all other prepetition and
                     postpetition liens and security interests except (i) any
                     other security interest in or lien on such assets to the
                     extent that, as of the petition date, such other
                     security interest or lien was valid, perfected and not
                     subject to avoidance and senior to the prepetition
                     liens, (ii) any security interest in or lien on proceeds
                     or products of, or accessions to, assets subject to a
                     security interest or lien referred to in the foregoing
                     clause (i) and arising or created after the petition
                     date to the extent that (A) such security interest in or
                     lien on the proceeds, products or accessions would have
                     been valid, perfected and not subject to avoidance if
                     the proceeds, products or accessions had arisen or been
                     created immediately prior to the commencement of

                                       13
<PAGE>
                     the Chapter 11 cases and (B) such security interest in or
                     lien on the proceeds, products or accessions would be
                     entitled, under applicable non-bankruptcy law, to priority
                     over any security interest in or lien on the proceeds,
                     products or accessions securing the prepetition
                     indebtedness, or (iii) as expressly agreed to the contrary
                     by the Administrative Agents.

                  It is expected that the Administrative Agents will agree that
                  these liens and security interests will be subordinate to
                  statutory liens in favor of persons selling crude oil to the
                  Borrowers and Guarantors, to the extent those liens and
                  security interests are otherwise perfected first priority
                  liens in identifiable crude oil or identifiable proceeds from
                  the sale thereof

                  The liens and security interests granted to the Collateral
                  Agent will not be subject to Section 551 of the Bankruptcy
                  Code, and for purposes of the Second Interim Financing Order
                  the Collateral will not be charged pursuant to Section 506(c)
                  of the Bankruptcy Code.

                  The term "Carve Out Reserve" will mean (a) allowed
                  administrative expenses pursuant to 28 U.S.C. Section
                  1930(a)(6) and (b) allowed fees and expenses incurred by the
                  professionals retained by the debtors and the official
                  committee of creditors or noteholders pursuant to Sections 327
                  and 1103 of the Bankruptcy Code, but shall not include fees,
                  costs and expenses of third-party professionals employed by
                  the members of such committee. For purposes of clause (b), the
                  amount of the Carve Out Reserve, which applies upon a
                  Termination Date (as defined below), shall be limited to the
                  sum of $2,000,000, whether the fees and expenses are allowed
                  and unpaid at the time of the Termination Date or are incurred
                  before or after the Termination Date. As used herein,
                  "Termination Date" shall mean the earliest of (i) the Maturity
                  Date and (ii) the date that any remedies are exercised by the
                  Administrative Agents or SCTSC in connection with any event of
                  default under any DIP Financing Document.

                  None of the (a) Carve Out Reserve or (b) prepetition or
                  postpetition collateral proceeds or funding under the DIP
                  Facilities may be used to object to or challenge in any way
                  any claims, liens or cash collateral held by or on behalf of
                  the Prepetition Lenders and the Collateral Agent or to assert
                  any claims or causes of action against the agent or the
                  lenders under the Prepetition Credit Agreement, the LC Issuer,
                  the LC

                                       14
<PAGE>
                  Participants, SCTSC, the Term Lenders, the Administrative
                  Agents or the Collateral Agent; provided, that the Carve Out
                  Reserve and such collateral proceeds or funding under the DIP
                  Facilities may be used for investigation by the Borrowers or
                  the Guarantors (or an authorized substitute for the Borrowers
                  or the Guarantors if the Borrowers or the Guarantors are for
                  some reason unable to conduct an investigation) of claims,
                  causes of action or theories for litigation regarding (a) the
                  validity, enforceability, perfection or priority of the
                  prepetition liens in the prepetition collateral, (b) the
                  validity, allowability, priority, status or amount of the
                  prepetition indebtedness, within 30 days following the
                  petition date or (c) the validity and enforceability of the
                  Purchase Agreements (provided, that the expenses incurred for
                  such investigation shall not exceed $75,000).

Documentation:    The LC Facility will be governed by a credit agreement among
                  the Borrowers, the Guarantors, the LC Issuer, the LC
                  Participants and the LC Agent (the "SCB DIP Credit
                  Agreement"). The Term Loans will be governed by a credit
                  agreement among the Borrowers, the Guarantors, the Term
                  Lenders and the Term Lender Agent (the "Lehman DIP Credit
                  Agreement"). The SCTSC Purchase Agreements will be between
                  EOTT OLP and SCTSC. There will be an intercreditor and
                  security agreement (the "Intercreditor Agreement") among the
                  Borrowers, the Guarantors and the DIP Lenders to provide for
                  the security interests, liens and Cash Waterfall described
                  above and for certain agreements among the DIP Lenders,
                  including the matters referred to in Annex I to this term
                  sheet. The liens and security interests of the Prepetition
                  Lenders will be continued to secure the obligations under the
                  DIP Financing Documents, and appropriate mortgage amendments
                  will be executed, delivered and filed. All of the foregoing,
                  together with the Second Interim Financing Order and any other
                  documents, instruments or agreements called for thereunder,
                  are the "DIP Financing Documents."

Conditions        The obligation to provide the initial fundings and Letters of
Precedent:        Credit under the DIP Facilities shall be subject to the
                  satisfaction of conditions precedent, including, without
                  limitation, the following. (All references below to the entry
                  of orders by the Bankruptcy Court refer to their being entered
                  in form and substance acceptable to the Administrative Agents
                  and also refer to the continued effectiveness of those orders
                  without their being reversed or stayed on the Closing Date and
                  without their being modified except as consented to by the
                  Administrative Agents.)

                                       15
<PAGE>
                  o  Commencement of the Cases on or prior to October 7,
                     2002.

                  o  Entry of the Second Interim Financing Order.

                  o  Entry of first day orders that allow the Borrowers and
                     Guarantors to conduct their businesses in conformity
                     with the provisions of the DIP Financing Documents and,
                     in particular, to pay the prepetition and postpetition
                     claims of their critical crude oil suppliers and other
                     vendors and to use their existing cash management
                     systems.

                  o  Entry of a cash collateral order allowing the Borrowers
                     and Guarantors to use their cash constituting collateral
                     for prepetition claims in conformity with the provisions
                     of the DIP Financing Documents.

                  o  Receipt by the Administrative Agents of financial
                     projections and a 16-week cash budget satisfactory to
                     them, and entry of a budget order authorizing and
                     requiring the implementation of that budget.

                  o  Execution and delivery of the following, in form and
                     substance acceptable to the Administrative Agents:

                     o  A Restructuring Agreement among EOTT Energy Partners,
                        L.P., Enron Corp., SCB, SCTSC, Lehman Commercial Paper
                        Inc. and those holders of the Borrowers' 11% Senior
                        Notes due 2009 comprising the unofficial committee of
                        noteholders, providing, among other things, for the
                        parties thereto to support the DIP Facilities and to
                        support the Borrowers' and Guarantors' plan of
                        reorganization, as described therein.

                     o  A Settlement Agreement and an Employee Transition
                        Agreement, and any other documents executed in
                        connection with the foregoing (collectively, the
                        "Settlement Agreements") among the Borrowers, the
                        Guarantors, and Enron Corp. (including all its
                        requisite subsidiaries).

                  o  Negotiation, execution and delivery of definitive DIP
                     Financing Documents satisfactory to the Administrative
                     Agents and the Collateral Agent.

                                       16
<PAGE>

                  o  The SCTSC Purchase Agreements shall have been assumed by
                     the Borrowers and approved by the Bankruptcy Court
                     pursuant to the Second Interim Financing Order.

                  o  Receipt by the lenders of satisfactory corporate
                     resolutions, legal opinions and other closing documents
                     relating to the Borrowers and Guarantors.

                  o  Satisfactory completion by the Administrative Agents of
                     business, legal and environmental due diligence.

                  o  The obligation to provide the Letters of Credit under
                     the DIP Facilities shall be subject to the condition
                     that (a) all prepetition revolving credit loans
                     outstanding under the Prepetition Credit Agreement have
                     been paid in full in cash and (b) all accrued and unpaid
                     interest, fees, costs and expenses that are then due and
                     payable (supported by, to the extent required by the
                     Borrowers, invoices and proper supporting documentation)
                     under the Prepetition Credit Agreement have been paid in
                     full in cash.

Representations,  The DIP Financing Documents will contain representations,
Warranties,       warranties, covenants and events of default that are customary
Covenants and     for credit facilities of the same types. The representations,
Events of         warranties, covenants and events of default in the SCB DIP
Default:          Credit Agreement and the Lehman DIP Credit Agreement will be
                  substantially the same and will include, without limitation:

                  o  representations and warranties with respect to:
                     compliance with all laws; the accuracy and completeness
                     of financial information provided to the DIP Lenders;
                     proof of current and sufficient insurance; title to
                     properties, schedules of property locations; each of the
                     Borrowers' and Guarantors' due organization and good
                     standing and authorization and due execution and
                     enforceability of all DIP Financing Documents; status of
                     legal or other proceedings relating to the Borrowers and
                     the Guarantors; no consents required that have not been
                     obtained (taking into account the authorizations given
                     by the Bankruptcy Court); no violation of charter
                     documents or laws by the Borrowers or the Guarantors;
                     completeness and accuracy in all material respects of
                     the information furnished to the DIP Lenders; the first
                     priority perfected nature of the Collateral Agent's
                     security interests in and liens on the Collateral; no
                     liens on

                                       17
<PAGE>
                     the Borrowers' or the Guarantors' assets or estates, except
                     to the extent permitted under the DIP Financing Documents;
                     and use of the Letters of Credit and funding proceeds in
                     accordance with the budget and the DIP Financing Documents;

                  o  covenants with respect to: delivery of financial and
                     other information as the Administrative Agents may
                     reasonably request, including monthly, quarterly and
                     annual financial statements, weekly budget and cash flow
                     reports with comparisons to forecast, weekly accounts
                     payable summaries; maintenance of insurance; payment of
                     post-petition taxes; payment of postpetition obligations
                     under leases and licenses as required by the Bankruptcy
                     Code; notification of any default; rights of inspection,
                     commercial finance examinations, and asset appraisals;
                     cooperation with advisors engaged by either
                     Administrative Agent; maintenance of required bank
                     accounts; restrictions on liens, indebtedness, dividends
                     and distributions, investments, sales of assets, mergers
                     and acquisitions, capital expenditures, and prepayment
                     or amendment of other indebtedness; delivery of copies
                     of all pleadings, papers, notices and orders filed in or
                     issued from the Bankruptcy Court or any appellate court
                     in the Cases and copies of all reports filed with the
                     Office of the United States Trustee; indemnification of
                     the DIP Lenders; and submission of all disputes
                     concerning the DIP Financing Documents to the
                     jurisdiction of the Bankruptcy Court provided that
                     enforcement of liens and remedies by the Collateral
                     Agent may occur in other courts in accordance with
                     applicable law governing such liens and remedies); and

                  o  events of default with respect to: failure to pay when
                     due any obligations under the DIP Financing Documents;
                     any representation or warranty in the DIP Financing
                     Documents being found to be incorrect in any material
                     respect; breach of any affirmative, negative or
                     financial covenant, and the expiration of applicable
                     cure periods, if any; entry of any judgment in excess of
                     an amount to be agreed or which would operate to divest
                     any of the Borrowers or Guarantors of any material
                     assets; material disruption of the aggregate business
                     operations of the Borrowers and Guarantors for more than
                     a period to be agreed; failure to comply with the budget
                     within agreed variances; conversion of any of the Cases
                     to a case under Chapter 7 of the Bankruptcy Code; the
                     entry of an order terminating exclusivity; any material
                     breach by any party to the Restructuring

                                       18
<PAGE>
                     Agreement or the Settlement Agreements; the termination of
                     obligations of any party under the Restructuring Agreement;
                     the dismissal of any of the Cases; the appointment in any
                     of the Cases of a Chapter 11 trustee or an examiner with
                     expanded powers (beyond those set forth under Section
                     1106(a)(3) and (4) of the Bankruptcy Code); the grant of
                     any superpriority administrative expense claim or any lien
                     which is pari passu with or senior to those of the DIP
                     Lenders; any payment of prepetition debt not permitted
                     under the SCB DIP Credit Agreement or the Lehman DIP Credit
                     Agreement; the Bankruptcy Court's entry of an order
                     granting relief from the automatic stay to permit
                     foreclosure by any other creditor of security interests in
                     assets of any of the Borrowers of a value in excess of an
                     amount to be negotiated; any reversal, revocation or
                     modification without the consent of the Administrative
                     Agents of the Second Interim Financing Order or any other
                     order of the Bankruptcy Court with respect to any of the
                     Cases and affecting the DIP Financing Facilities; and the
                     occurrence of an event of default under any of the other
                     DIP Financing Documents.

Financial         The SCB DIP Credit Agreement and the Lehman DIP Credit
Covenants:        Agreement will include covenants requiring a minimum average
                  monthly level of operations for the Borrowers, measured in
                  barrels of crude oil, minimum levels of cash flow, and the
                  receipt of a minimum level of cash from net margins between
                  the cost of crude oil purchased and the cost of crude oil
                  sold.

Remedies:         Subject to the terms of the Intercreditor Agreement, upon the
                  occurrence of an Event of Default the Administrative Agents
                  and SCTSC may declare all obligations owing under their
                  respective DIP Financing Documents to be immediately due and
                  payable and may declare a termination, reduction or
                  restriction of any further commitment to extend credit to the
                  Borrowers to the extent any such commitment remains.

                  Upon the occurrence of an Event of Default and following the
                  giving of five (5) business days' notice to the Borrowers, the
                  Administrative Agents, the committee of unsecured creditors or
                  noteholders of the Borrowers (if then appointed) and the
                  United States Trustee, the Collateral Agent shall have relief
                  from the automatic stay and may, if so directed by either
                  Administrative Agent, foreclose on all or any portion of the
                  Collateral or otherwise exercise remedies against the
                  Collateral permitted by applicable nonbankruptcy law. During
                  such five-business-day notice period, the Borrowers shall be
                  entitled to an emergency

                                       19
<PAGE>
                  hearing with the Bankruptcy Court for the sole purposes of
                  contesting whether an Event of Default has occurred. Unless
                  during such period the Bankruptcy Court determines that an
                  Event of Default has not occurred, the automatic stay, as to
                  the DIP Lenders, shall automatically terminate at the end of
                  such notice period.

Syndication,      Subject to the terms of the Intercreditor Agreement, any DIP
Assignments &     Lender at any time may make assignments of and sell
Participations:   participations in its rights and obligations under the DIP
                  Financing Documents, without any requirement that consent be
                  obtained from the Borrowers, the other DIP Lenders or the
                  Bankruptcy Court.

Costs and         All out-of-pocket costs and expenses of the DIP Lenders and
Expenses:         their business and legal advisors (including, without
                  limitation, legal fees and fees of financial and industry
                  advisors; expenses in connection with periodic
                  collateral/financial control, field examinations, asset
                  appraisal expenses, the monitoring of assets, enforcement of
                  rights, and other miscellaneous disbursements) and legal
                  review costs shall be payable by the Borrowers on demand,
                  whether or not the transactions contemplated hereby are
                  consummated.

Indemnity:        The Borrowers and the Guarantors shall indemnify and hold
                  harmless the agent and lenders under the Prepetition Credit
                  Agreement, the LC Issuer, the LC Participants, SCTSC, the Term
                  Lenders, the Administrative Agents and the Collateral Agent
                  and their respective officers, directors, employees,
                  affiliates, agents and controlling persons from and against
                  any and all losses, claims, damages and liabilities to which
                  any such person may become subject arising out of, or in
                  connection with, the Prepetition Credit Agreement, the DIP
                  Facilities, this term sheet, the transactions contemplated
                  hereby or any claim, litigation, investigation or proceeding
                  relating to any of the foregoing, whether or not any of such
                  indemnified persons is a party thereto, and reimburse each of
                  such indemnified persons, from time to time upon their demand,
                  for any reasonable legal or other expenses incurred in
                  connection with investigating or defending any of the
                  foregoing, whether or not the transactions contemplated hereby
                  are consummated, provided that the foregoing indemnity will
                  not, as to any indemnified person, apply to losses, claims,
                  damages, liabilities or related expenses to the extent that
                  they arise from the bad faith, willful misconduct or gross
                  negligence of such indemnified person as finally determined by
                  a final non-appealable order of a court of competent
                  jurisdiction.

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<PAGE>
                  The Borrowers and the Guarantors shall further indemnify the
                  LC Issuer, the LC Participants, SCTSC, the Term Lenders, the
                  Administrative Agents and the Collateral Agent (and their
                  respective affiliates) and hold them harmless from and against
                  any loss, cost or expense incurred or sustained by any of them
                  in providing payroll, concentration account, lock box,
                  collection, disbursement and other cash management services to
                  the Borrowers. Such indemnification obligations shall be
                  included as "Obligations" under the DIP Facilities entitled to
                  all of the benefits and protections afforded the DIP
                  Facilities, including, without limitation, superpriority claim
                  and first priority secured status.

Governing Law:    The DIP Financing Documents shall be governed by, and
                  construed in accordance with, the laws of the State of New
                  York, except as governed by the Bankruptcy Code and except to
                  the extent any real property security documents may be
                  governed by local law.

Waiver of Jury    Each of the Borrowers, the Guarantors, and the DIP Lenders
Trial:            will irrevocably and unconditionally waive trial by jury in
                  any legal action or proceeding relating hereto or to any DIP
                  Financing Document, including without limitation any
                  proceeding in or ancillary to the Cases.

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                                                                         ANNEX I

                         SUMMARY OF INTERCREDITOR TERMS

Capitalized terms used and not otherwise defined herein shall have the meanings
assigned to such terms in the term sheet to which this Annex I is attached (the
"Term Sheet").

I.    Types of Collateral/Assets:

      A.    All commodities (i.e. the specified number of barrels of oil)
            purchased by SCTSC under the Amended Crude Oil Purchase Agreement,
            all the documents of title delivered to SCTSC pursuant thereto and
            all proceeds thereof (the "Commodities Assets").

      B.    All receivables and contract rights purchased by SCTSC under the
            Amended Receivables Purchase Agreement and all proceeds thereof (the
            "Receivables Assets").

      C.    The following assets: (1) MTBE facility at Morgan's Point, TX, (2)
            salt dome storage caverns and related pipelines at Mt. Belvieu, TX,
            and (3) gas processing, storage and transportation facilities at
            Bakersfield, CA (collectively, the "Assets Held for Sale").

      D.    All other assets of the Credit Parties ("General Collateral").

II.   Liens and Application of Proceeds:

      A.    Liens: All of the Commodities Assets and Receivables Assets, to the
            extent of the Borrowers' rights, if any, therein, and all Assets
            Held for Sale and General Collateral will be part of a joint
            collateral pool, with the Borrowers and the Guarantors granting a
            first priority security interest in favor of Standard Chartered Bank
            ("SCB"), acting in its capacity as the Collateral Agent.

      B.    Application of Proceeds:

            1.    With respect to Commodities Assets: To the extent of the
                  Borrower's rights, if any, therein, SCTSC will have first call
                  on the Commodities Assets, up to a maximum amount of $75m plus
                  associated interest, yield, fees and collection costs or other
                  costs under the Amended Crude Oil Purchase Agreement. Excess
                  collections from the Commodities Assets

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<PAGE>
                  will be distributed by the Collateral Agent in accordance with
                  Section II.B (4) below.

            2.    With respect to Receivables Assets: All Receivables Assets
                  that are purchased by SCTSC under the Amended Receivables
                  Purchase Agreement are no longer assets of the Borrowers. To
                  the extent of the Borrower's rights, if any, therein, SCTSC
                  will have first call on the Receivables Assets, up to the
                  maximum amount that SCTSC has advanced under the Receivables
                  Purchase Agreement plus associated interest, yield, fees and
                  collection costs or other costs thereunder. Contractual excess
                  amounts from the Receivables Assets will be distributed by the
                  Collateral Agent in accordance with Section II.B (4) below.

            3.    The proceeds from the sale of the Assets Held for Sale will be
                  applied as described in the Term Sheet.

            4.    With respect to the General Collateral:

                  a.    All proceeds from the General Collateral will be first
                        applied to (i) SCB under the Tier A Letters of Credit
                        and (ii) the Term Lenders under the Tier A Term Loans on
                        a pari passu basis, until all obligations owed under the
                        SCB DIP Credit Agreement and the Lehman DIP Credit
                        Agreement have been paid in full in cash.

                  b.    Secondly, all proceeds from the General Collateral will
                        be applied on a pari passu basis to: (i) SCB under the
                        Tier B Letters of Credit, (ii) the Term Lenders under
                        the Tier B Term Loans and (iii) to the extent of any
                        undercollateralization under the SCTSC Repurchase
                        Agreements, SCTSC with respect EOTT OLP's obligations
                        owing to it thereunder.

III.  Enforcement of Rights:

      A.    Collateral Enforcement:

            1.    As to the General Collateral, the Commodities Assets, and the
                  Assets Held for Sale, any enforcement action against such
                  collateral must be authorized by the Required Lenders,
                  provided, that if (i) an Event of Default continues for two
                  months without being waived or cured or (ii) the Maturity Date
                  has occurred, either the Term Lenders or SCB can proceed to
                  enforce remedies against the General Collateral. "Required
                  Lenders"

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<PAGE>
                  will be defined as SCB plus 51% of the Term Lenders and the
                  Term Loan Agent.

            2.    As to the Receivables Assets, there are no restrictions on
                  enforcement actions, including SCTSC's right to collect
                  receivables directly from the buyer of goods under the
                  Receivables Purchase Agreement.

      B.    Other Enforcement Actions:

            1.    Prior to accelerating the obligations under the Letters of
                  Credit or the SCTSC Purchase Agreements, SCB or SCTSC, as
                  applicable, must give 5 days' notice to the Term Lender Agent.
                  Conversely, prior to accelerating the Term loans, the Term
                  Lender Agent must give 5 days' notice to LC Agent. Provisions
                  will be made for the recipient of any such notice to be able
                  to accelerate at the same time as the giver of any such
                  notice.

            2.    No other restrictions on enforcement actions, including the
                  right of SCB to stop issuing Letters of Credit upon an event
                  of default and SCTSC's right to stop purchasing receivables or
                  commodities under the applicable SCTSC Purchase Agreements.

IV.   Restrictions on Assignment:

      A.    Assignment of Term Loans: During the period that there are any
            credit extensions or amounts outstanding under the SCB DIP Credit
            Agreement, Lehman may assign its Term Loans if the Tier A Term Loans
            and the Tier B Term Loans are assigned on a pro rata basis. During
            the initial two weeks after the Closing Date, any assignment by
            Lehman shall solely be to persons who are existing bondholders of
            the Borrowers (and their affiliates).

      B.    General: During the period that there are any credit extensions or
            amounts outstanding under the SCB DIP Credit Agreement, Lehman shall
            not resign as Term Lender Agent.

V.    Amendment of Documents:

      A.    Amendment of Lehman DIP Credit Agreement: Any amendment to the
            Lehman DIP Credit Agreement that will (i) reduce the facility size,
            (ii) increase pricing by more than 2%, (iii) accelerate the maturity
            date, (iv) create any additional mandatory prepayment obligations or
            modify the application of the Cash

                                       24
<PAGE>
            Waterfall, or (v) make any covenants or events of default materially
            more restrictive or burdensome, will require the consent of SCB.

      B.    Amendment of SCB DIP Credit Agreement: Any amendment to the SCB DIP
            Credit Agreement that will (i) reduce the facility size, (ii)
            increase pricing by more than 2%, (iii) reduce the term of the
            facility, (iv) create any additional mandatory prepayment
            obligations or modify the application of the Cash Waterfall, or (v)
            make any covenants or events of default materially more restrictive
            or burdensome, will require the consent of Lehman. (See Section VI
            below for amendments relating to "Borrowing Base" thereunder.)

      C.    Amendment of Commodities Repurchase Agreement and Receivables Assets
            Purchase Agreement: Any amendment to the Commodities Repurchase
            Agreement or Receivables Assets Purchase Agreement that will (i)
            reduce the facility size, (ii) increase pricing by more than 2%,
            (iii) reduce the term of the loans, (iv) create any additional
            mandatory prepayment obligations or modify the application of the
            Cash Waterfall, or (v) make any covenants or events of default
            materially more restrictive or burdensome, will require the consent
            of SCB and Lehman.

VI.   Borrowing Base:

      As between SCB and the Term Lenders, SCB shall agree not to change any
      Advance Rate (as defined in the SCB DIP Credit Agreement) by more than 5%
      (e.g., from 85% to 80%) without the consent of the Term Lenders.

      As between SCB and the Borrowers, SCB shall agree not to change any
      Advance Rate without the consent of the Borrowers.

      The ability of SCB to change the requirements for eligibility without the
      Term Lenders' consent is subject to further discussions. SCB shall be
      entitled to use its discretion in applying such requirements to the extent
      such discretion is provided for in the written terms of the SCB DIP Credit
      Agreement.

VII.  Miscellaneous:

      A.    None of SCB, SCTSC nor Lehman will challenge each other's liens.

      B.    Turnover provision for improper payments.

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