Document:

EXHIBIT 10.7
                       FIRST AMENDMENT TO LEASE AGREEMENT

     This First Amendment to Lease Agreement (this "First Amendment") is entered
into by and between TEXAS COMMERCE BANK NATIONAL ASSOCIATION, a national banking
association   ("Landlord")  and  HOWELL  CORPORATION,   a  Delaware  corporation
("Tenant").

                              W I T N E S S E T H:

     WHEREAS,  Landlord and Tenant  entered into that  certain  Lease  Agreement
dated  December  13,  1993  (the  "Lease"),  wherein  Landlord  leased to Tenant
approximately  45,527  square feet of Net  Rentable  Area (the  "Initial  Office
Space")  located on the  fifteenth  (15th) and  sixteenth  (16th)  floors of the
building (the "Building") located at 1111 Fannin in the City of Houston,  Harris
County,  Texas and 2,000 square feet of Net Rentable Area (the "Storage  Space")
on the basement level of the Building; and

     WHEREAS,  Landlord and Tenant desire to amend the Lease in accordance  with
the terms and conditions set forth below;

     NOW,  THEREFORE,  for and in  consideration  of the duties,  covenants  and
obligations of each to the other  hereunder,  the Leased Premises and other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
confessed and  acknowledged,  Landlord and Tenant hereby agree to amend,  and do
hereby amend,  the Lease as follows (all terms defined in the Lease shall,  when
used herein,  have the same meanings as set forth in the Lease unless  otherwise
defined herein):

     1. Subject to and upon the terms,  provisions  and  conditions set forth in
the Lease and this First  Amendment,  and each in  consideration  of the duties,
covenants and  obligations of the other  hereunder,  Landlord does hereby lease,
demise and let to Tenant and Tenant does hereby lease and take from  Landlord an
additional  five  thousand two hundred  thirty-four  (5,234)  square feet of Net
Rentable  Area  located  on the  fifteenth  (15th)  floor  of the  Building,  as
reflected on the floor plan attached hereto as EXHIBIT A (the "Additional Office
Space").  From and after the Effective  Date of this First  Amendment,  the term
"Office  Space" as used in Section 1.01 and  throughout the Lease shall mean the
Initial Office Space and the  Additional  Office Space,  collectively.  From and
after the Effective Date of this First Amendment,  the term "Leased Premises" as
used in Section  1.01 and  throughout  the Lease shall mean the  Initial  Office
Space, the Additional Office Space and the Storage Space, collectively. Landlord
and Tenant hereby stipulate and agree that for all purposes of the Lease the Net
Rentable Area of the Initial Office Space,  the Additional  Office Space and the
Storage Space are as stated above,  notwithstanding any variations in the actual
measurements thereof. The expansion of the Leased Premises by Tenant pursuant to
this  First  Amendment  shall not be deemed to be an  exercise  by Tenant of its
Preferential Rights under Section 11.01 of the Lease.

     2. The annual  Base  Rental  payable  for the Leased  Premises  pursuant to
Section 2.01 of the Lease shall be as follows:

     (a) For the period commencing on the earlier of when ready for occupancy or
December 1, 1995 and  continuing  through April 14, 1999,  (i) Eleven and No/100
Dollars  ($11.00) per square foot of Net  Rentable  Area within the Office Space
and (ii) Six and No/100  Dollars  ($6.00) per square foot of Net  Rentable  Area
within the Storage Space,  payable in monthly  installments equal to Forty-Seven
Thousand Five Hundred Thirty and 92/100 Dollars ($47,530.92) each, and

     (b) For the period  commencing  on April 15,  1999 and  continuing  through
April 14, 2005, (i) Thirteen and No/100 Dollars  ($13.00) per square foot of Net
Rentable  Area within the Office Space and (ii) Six and No/100  Dollars  ($6.00)
per square  foot of Net  Rentable  Area  within the  Storage  Space,  payable in
monthly  installments  equal to Fifty-Five  Thousand Nine Hundred Ninety-One and
08/100 Dollars ($55,991.08) each.

     3.  Notwithstanding  anything contained in Section 2.03 of the Lease to the
contrary,  the "Base Calendar Year" for the Additional Office Space shall be the
calendar  year 1995.  Landlord's  good faith  estimate  of the Actual  Operating
Expenses  for the  calendar  year 1995  (after  adjustment  pursuant  to Section
2.04(c) of the Lease) is $5.43 per square foot of Net Rentable Area.

     4. Tenant  hereby  acknowledges  that Landlord has disclosed to Tenant that
certain materials used in the construction, completion, repair or maintenance of
the Building may contain  asbestos.  Tenant hereby  acknowledges the presence of
such asbestos-containing  materials in the Building,  whether such materials are
currently in the Building or were  previously in the Building,  and whether such
materials  are known or unknown  (the  "Existing  Asbestos"),  and  agrees  that
Landlord shall in no event have any obligation to Tenant hereunder to remove the
Existing Asbestos unless such removal is required pursuant to Environmental Laws
or set forth below.  Landlord  covenants  that Landlord has removed all Existing
Asbestos  of which  Landlord  has  knowledge  that is located in the  Additional
Office Space (other than the overspray  located on the perimeter  columns in the
Additional Office Space).

     5. The  Additional  Office Space shall be  delivered to Tenant,  and Tenant
shall accept same, in the condition and with only such  leasehold  improvements,
if any,  as set forth in EXHIBIT B attached  hereto.  As used in the Lease,  the
term  "Initial  Leasehold  Improvements"  shall  include (a) with respect to the
Initial Office Space and the Storage Space,  any and all improvements and tenant
finish  existing in the  Initial  Office  Space and the Storage  Space as of the
Commencement Date, including all leasehold improvements,  if any, as defined and
described in Exhibit B attached to the Lease, as well as any and all Alterations
(as defined below) and subsequent  improvements made to the Initial Office Space
and the Storage  Space  during the term of the Lease and (b) with respect to the
Additional  Office Space, any and all improvements and tenant finish existing in
the Additional Office Space as of the Commencement Date, including all leasehold
improvements,  if any, as defined and described in EXHIBIT B attached hereto, as
well as any and all Alterations  (as defined below) and subsequent  improvements
made to the Additional Office Space during the term of the Lease.

     6. Landlord and Tenant hereby  acknowledge and agree that the "Commencement
Date" occurred on April 15, 1994.

     7.  Section  10.01 of the Lease is hereby  deleted in its  entirety and the
following shall be substituted in its place:

     "10.01  Expansion  Option.  (a)  Tenant  shall have the  additional  option
("First Expansion Option"), by providing written notice thereof to Landlord (the
"First Expansion Election Notice") at any time between April 1, 1996 and October
1, 1996, to include under this Lease an additional 4,000 to 5,000 square feet of
Net Rentable Area on the fifteenth  (15th) Floor of the Building.  The amount of
additional space to be included under this Lease pursuant to the First Expansion
Option shall be identified by Tenant in the First Expansion Election Notice. The
actual  space to be included  under this Lease  pursuant to the First  Expansion
Option  shall  be  designated  by  Landlord,  provided,  however,  it  shall  be
internally  contiguous and contiguous to the then existing  Leased  Premises and
shall have a reasonable  configuration (the "First Expansion  Space").  Landlord
and Tenant  shall then enter into an amendment to this Lease to cover such First
Expansion  Space on the same  terms and  provisions  then in effect  under  this
Lease,  except as otherwise  provided  hereunder  and except that (i) the annual
Base Rental rate for the First  Expansion Space shall be adjusted to reflect the
Prevailing  Rental Rate as of the date such First  Expansion  Space will be made
available to Tenant,  (ii) Landlord shall not be required to provide (but may do
so at its option and with Tenant's consent) any improvement allowance, abatement
of Rent, or other incentives,  inducements or allowances,  (iii) Tenant shall be
entitled to one additional (1) unreserved  parking permit per 680 square feet of
Net  Rentable  Area  leased  pursuant  to such First  Expansion  Option,  at the
prevailing market rate therefor as of the addition of such First Expansion Space
to the  Leased  Premises,  and  thereafter  adjust in  accordance  with any such
changes to such market  charges,  (iv) Tenant shall not have the right to assign
its expansion rights to any sublessee of the Leased  Premises,  nor may any such
sublessee exercise such expansion rights, and (v) the First Expansion Space will
be  provided  in its then  existing  condition  (on an "as is" basis;  provided,
however,  Landlord shall remove and dispose of any Existing  Asbestos located in
the First  Expansion  Space,  other than the  Existing  Asbestos  located on the
perimeter columns of the First Expansion Space). The First Expansion Space shall
be made  available  to Tenant  between  October  1, 1996 and  February  1, 1997.
Tenant's  obligation to commence paying Rent on such First Expansion Space shall
commence  on the  earliest  to occur of (1)  Tenant's  occupancy  of such  First
Expansion Space for the purpose of conducting business  therefrom,  or (2) sixty
(60) days  following the delivery of such First  Expansion  Space by Landlord to
Tenant.  Landlord shall, at Landlord's cost and expense, be required to make any
alterations to the First  Expansion Space and the Building which are required by
law in order to provide such space to Tenant (i.e. corridors, access, etc.)

     (b) Tenant shall have the additional option ("Second Expansion Option"), by
providing  written  notice thereof to Landlord (the "Second  Expansion  Election
Notice")at  any time between  March 1, 1997 and  September  1, 1997,  to include
under this Lease an  additional  4,000 to 5,000 square feet of Net Rentable Area
on the fifteenth (15th) Floor of the Building. The amount of additional space to
be included  under this Lease pursuant to the Second  Expansion  Option shall be
identified by Tenant in the Second Expansion  Election Notice.  The actual space
to be included under this Lease pursuant to the Second Expansion Option shall be
designated by Landlord, provided, however, it shall be internally contiguous and
contiguous  to the then  existing  Leased  Premises  and shall have a reasonable
configuration  (the "Second  Expansion  Space").  Landlord and Tenant shall then
enter into an  amendment to this Lease to cover such Second  Expansion  Space on
the same  terms  and  provisions  then in effect  under  this  Lease,  except as
otherwise provided hereunder and except that (i) the annual Base Rental rate for
the Second  Expansion  Space shall be adjusted to reflect the Prevailing  Rental
Rate,  as of the date such  Second  Expansion  Space will be made  available  to
Tenant (ii)  Landlord  shall not be  required  to provide  (but may do so at its
option and with Tenant's consent) any improvement allowance,  abatement of Rent,
or other incentives,  inducements or allowances,  (iii) Tenant shall be entitled
to one  additional  (1)  unreserved  parking  permit per 680 square  feet of Net
Rentable Area leased pursuant to such Second  Expansion Option at the prevailing
market rate  therefor as of the addition of such Second  Expansion  Space to the
Leased  Premises,  and thereafter  adjust in accordance with any such changes to
such  market  charges,  (iv)  Tenant  shall  not have the  right to  assign  its
expansion  rights to any  sublessee  of the  Leased  Premises,  nor may any such
sublessee  exercise such expansion  rights,  and (v) the Second  Expansion Space
will be provided in its then existing condition (on an "as is" basis;  provided,
however,  Landlord shall remove and dispose of any Existing  Asbestos located in
the Second  Expansion  Space,  other than the Existing  Asbestos  located on the
perimeter  columns of the Second  Expansion  Space).  The Second Expansion Space
shall be made available to Tenant between September 1, 1997 and January 1, 1998.
Tenant's obligation to commence paying Rent on such Second Expansion Space shall
commence  on the  earliest  to occur of (1)  Tenant's  occupancy  of such Second
Expansion Space for the purpose of conducting business  therefrom,  or (2) sixty
(60) days following the delivery of such Second  Expansion  Space by Landlord to
Tenant.  Landlord shall, at Landlord's cost and expense, be required to make any
alterations to the Second Expansion Space and the Building which are required by
law in order to provide such space to Tenant (i.e corridors, access, etc.)

     (c) In the  event  Tenant  exercises  its  right  under  either  the  First
Expansion  Option or the Second  Expansion  Option,  but  objects to  Landlord's
determination  of the Prevailing  Rental Rate,  then the Prevailing  Rental Rate
shall be  determined  in  accordance  with the  procedure  set forth in  Section
12.02(l) of this Lease.

     (d) If Tenant exercises the Preferential Right under Section 11.01 and such
exercise  results in a reduction  of the number of square  feet of Net  Rentable
Area available for Tenant's First Expansion  Option and Second  Expansion Option
then the amount of expansion space  contained in the First Expansion  Option and
the Second  Expansion Option shall be reduced to the amount of Net Rentable Area
available on the fifteenth  (15th) floor at the respective  times such expansion
options may be exercised  by Tenant.  In the event  Tenant  exercises  its right
under either the First Expansion  Option or the Second Expansion Option and as a
result of Tenant exercising its rights under the Preferential  Right (as defined
in Section  11.01),  the remaining  space on the  fifteenth  (15th) Floor of the
Building  that is not then being leased by Tenant is less than 4,000 square feet
of Net Rentable Area,  then the First Expansion  Option or the Second  Expansion
Option,  as the case may be, shall be revised to include all of the Net Rentable
Area on the  fifteenth  (15th)  Floor of the  Building  which is not then  being
leased by Tenant.

     (e)  Notwithstanding  anything  in  this  Section  10.01  to the  contrary,
Tenant's First Expansion  Option and Second  Expansion Option shall terminate if
this Lease or Tenant's right to possession of the Leased Premises is terminated,
or if Tenant fails to timely exercise the First  Expansion  Option or the Second
Expansion  Option;  provided,  however,  Tenant's failure to timely exercise the
First Expansion Option shall not result in a termination of the Second Expansion
Option."

     8. Section  3.04(c) of the Lease is hereby  deleted in its entirety and the
following shall be substituted in its place:

     "During the term of this Lease,  Landlord will not,  without Tenant's prior
written consent,  provide any other Building tenant exterior signage, except for
exterior  signage to tenants of the  Building  that  occupy  space on the ground
floor of the Building that is located east of the Dallas Street  entrance to the
parking  garage of the Building.  Notwithstanding  the  foregoing,  in the event
Landlord  desires to grant exterior signage rights to any tenant of the Building
that occupies  space on the ground floor of the Building that is located west of
the Dallas Street  entrance to the parking garage of the Building  (other than a
tenant which also  occupies  space on the ground  floor of the Building  that is
located  east  of the  Dallas  Street  entrance  to the  parking  garage  of the
Building),  Tenant  shall  not  unreasonably  withhold,  condition  or delay its
consent to the granting of any such exterior signage rights. Tenant acknowledges
that, for purposes of this Section  3.04(c),  the term "exterior  signage" shall
not include any signage  located on the interior  side of the exterior  glass of
the tenant space located on the ground floor of the Building."

     9. Tenant may install, at Tenant's sole cost and expense,  signage graphics
at both Fannin Street entrances to the Building.  The size,  location,  quality,
material,  graphic  style  and  composition  of all  such  signage  shall  be in
accordance with specifications approved by Landlord, which approval shall not be
unreasonably withheld,  conditioned or delayed; provided,  however, it shall not
be  unreasonable   for  Landlord  to  refuse  to  approve  any  change  to  such
specifications which are inconsistent with the architecture and design integrity
of the  Building  or which  violates  any  applicable  law,  rule or  ordinance.
Landlord  hereby  acknowledges  that  a  sign  constructed  of  brushed,  silver
aluminum,  with the type style "Caslon 540," will be approved as complying  with
the Building's current signage graphics. Tenant shall pay all costs and expenses
associated  with (i) obtaining  and  maintaining  such exterior  signage and all
necessary  permits  relating  thereto,  (ii)  operating  such exterior  signage,
including,  without limitation, all electrical costs relating thereto, and (iii)
compliance  with all applicable  codes and ordinances with respect to all rights
granted to Tenant  pursuant  to this  Section 9.  Additionally,  all of Tenant's
rights  granted in this  Section 9 shall be  subject  to any and all  applicable
codes and ordinances.

     Tenant agrees that within thirty (30) days after the  expiration or earlier
termination  of this Lease,  Tenant  shall,  at Tenant's  sole cost and expense,
remove Tenant's exterior signage and restore the Building to a condition similar
to which existed prior to the attachment of Tenant's  exterior  signage onto the
Building. In the event Tenant fails to remove such exterior signage or make such
restoration within the thirty (30) day period,  Landlord may remove such signage
and  restore  the  Building  to such  condition,  and Tenant  shall pay the cost
thereof.

     10. In  connection  with the expansion of the Leased  Premises  pursuant to
this First  Amendment,  Landlord  hereby agrees to make  available to Tenant and
Tenant  hereby  agrees to pay for and take,  during the remainder of the term of
the Lease, an additional nine (9) permits to park one (1) automobile each in the
Garage,  all of which shall be unassigned  and  unreserved  parking  spaces (the
"Additional  Spaces").  The Additional  Spaces shall be made available to Tenant
and taken by Tenant  subject  to the terms and  conditions  of  Exhibit E to the
Lease.  From and after the  Effective  Date of this  First  Amendment,  the term
"Unreserved  Permits"  as used in Exhibit E to the Lease  shall mean the initial
sixty-two (62)  unassigned and unreserved  permits set forth in Exhibit E to the
Lease and the Additional Permits, collectively.

     11. Landlord agrees to pay to Trione & Gordon ("Landlord's  Broker") a real
estate brokerage commission as set forth in a separate listing agreement between
Landlord and Landlord's  Broker and Landlord agrees to pay Montgomery,  Conine &
Robinson and McDade, Smith & Co. (collectively, "Tenant's Broker") a real estate
brokerage  commission  as set forth in a  separate  commission  agreement  dated
October 20, 1993,  by and between  Landlord and  Tenant's  Broker.  Landlord and
Tenant  hereby  represent  and  warrant  each to the  other  that  they have not
employed any other agents, brokers or other such parties in connection with this
First  Amendment,  and each agrees that they shall hold the other  harmless from
and  against  any and all  claims of all other  agents,  brokers  or other  such
parties claiming by, through or under the respective indemnifying party.

     12.  Except as expressly  provided  herein,  the Leased  Premises  shall be
governed by the same terms and  conditions as set forth in the Lease.  The Lease
as hereby  amended is hereby  ratified  and  affirmed  and,  except as expressly
amended hereby, all other items and provisions of the Lease remain unchanged and
continue to be in full force and effect. The terms of this First Amendment shall
control over any conflicts  between the terms of the Lease and the terms of this
First Amendment.

     13. The Lease, as amended by this First  Amendment,  constitutes the entire
agreement and  understanding  between the parties hereto relating to the subject
matter hereof and all prior agreements, proposals, negotiations,  understandings
and correspondence  between the parties in this regard, whether written or oral,
are hereby superseded and merged herewith.

     IN WITNESS  WHEREOF,  this First  Amendment  may be executed by the parties
hereto on separate multiple counterparts, each of which shall be deemed to be an
original,  executed  to be  effective  as of the 5th day of  October,  1995 (the
"Effective Date").

                                        "Landlord"

                                        TEXAS COMMERCE BANK
                                        NATIONAL ASSOCIATION,
                                        a national banking association

                                        By:  /s/ David Senior
                                        Name:     David Senior
                                        Title:    Senior Vice President

                                        "Tenant"

                                        HOWELL CORPORATION,
                                        a Delaware corporation

                                        By:       /s/ Paul N. Howell
                                        Name:     Paul N. Howell
                                        Title:    President & CEO
<page>
                                    EXHIBIT A

     This  exhibit  consists of a drawing of Level 15 of the Howell  Corporation
Building at 1111 Fannin. The drawing shows the location of Suite 1560.
<page>
                                    EXHIBIT B

                 CONSTRUCTION OF INITIAL LEASEHOLD IMPROVEMENTS

     Landlord shall cause the Initial  Leasehold  Improvements to be constructed
in the Additional  Office Space in accordance  with this EXHIBIT B. The "Initial
Leasehold Improvements" consist of all improvements and tenant finish desired by
Tenant in the Additional Office Space.

                                    ARTICLE I

                   Design of the Initial Leasehold Improvement

     1.1 Design  Professionals.  All plans and  specifications  relating  to the
Initial  Leasehold  Improvements  shall be prepared by architects  and engineers
selected  and  employed by Tenant and  approved by  Landlord.  Tenant may employ
other consultants of its selection to assist with the design and construction of
the Initial Leasehold Improvements,  Tenant's architects,  engineers,  and other
consultants  shall be afforded access to all work in progress at the Building or
in the  Additional  Office  Space.  Landlord has  approved  Kirksey and Partners
Architects as Tenant's design professionals.

     1.2  Approval of Space  Plans.  Tenant  shall have  prepared  and submit to
Landlord for approval a set of preliminary plans (the "Proposed Space Plans") in
the form of a schematic design providing a conceptual  layout and description of
the Initial Leasehold Improvements. Within ten (10) business days after delivery
of the Proposed  Space Plans to  Landlord,  Landlord  shall  either  approve the
Proposed Space Plans or notify Tenant of the item(s) of the Proposed Space Plans
that Landlord  disapproves and the reason(s) therefor.  If Landlord  disapproves
the Proposed Space Plans,  Tenant shall revise and resubmit same to Landlord for
approval  (the  "Revised  Space  Plans").  Within five (5)  business  days after
delivery of the Revised Space Plans to Landlord,  Landlord  shall either approve
the  Revised  Space Plans or notify  Tenant of the item(s) of the Revised  Space
Plans  which  Landlord  disapproves  and the  reason(s)  therefor.  If  Landlord
disapproves  the Revised Space Plans,  Tenant shall further  revise and resubmit
same to Landlord for approval,  which process shall continue until the plans are
approved.  Landlord shall have five (5) business days after delivery of the each
set of Revised  Space Plans to either  approve the Revised Space Plans or notify
Tenant of the item(s) of the Revised Space Plans which Landlord  disapproves and
the reason(s)  therefor.  The Proposed  Space Plans or Revised  Space Plans,  as
approved by Landlord, are hereinafter referred to as the "Approved Space Plans".

     1.3 Approval of Construction  Documents.  Upon  Landlord's  approval of the
Space Plans,  Tenant shall have prepared,  by a licensed  architect and engineer
acceptable to Landlord in Landlord's sole and absolute discretion,  construction
drawings  (in  accordance  with the Space  Plans) and  specifications  including
complete sets of detailed architectural,  structural, mechanical, electrical and
plumbing  working  drawings  (the  "Proposed  Construction  Documents")  for the
Initial  Tenant  Improvements  and  shall  deliver  the  Proposed   Construction
Documents to Landlord for approval. Within ten (10) business days after delivery
of the  Proposed  Construction  Documents  to  Landlord,  Landlord  shall either
approve the Proposed  Construction  Documents or notify Tenant of the item(s) of
the Proposed Construction  Documents that Landlord disapproves and the reason(s)
therefor.  If Landlord disapproves the Proposed Construction  Documents,  Tenant
shall  revise  and  resubmit   same  to  Landlord  for  approval  (the  "Revised
Construction  Documents").  Within five (5) business days after  delivery of the
Revised  Construction  Documents to Landlord,  Landlord shall either approve the
Revised  Construction  Documents or notify  Tenant of the item(s) of the Revised
Construction Documents which Landlord disapproves and the reason(s) therefor. If
Landlord  disapproves the Revised Construction  Documents,  Tenant shall further
revise and resubmit same to Landlord for approval,  which process shall continue
until the plans are approved.  Landlord  shall have five (5) business days after
delivery of each set of Revised  Construction  Documents  to either  approve the
Revised  Construction  Drawings  or notify  Tenant of the item(s) of the Revised
Construction Drawings which Landlord disapproves and the reason(s) therefor. The
Proposed Construction Documents or Revised Construction  Documents,  as approved
by  Landlord,   are  hereinafter  referred  to  as  the  "Approved  Construction
Documents".

     1.4  Information  and Approval  Standards.  Within three (3) days after any
written  request  submitted  from  time  to time by  Tenant  or its  architects,
engineers,   or  other   consultants,   Landlord   shall   furnish   any  plans,
specifications,  drawings,  samples,  or other  materials or information  within
Landlord's  possession  reasonably related to the design and construction of the
Initial Leasehold  Improvements.  Tenant acknowledges,  however, that Landlord's
approval of the Approved Construction Documents shall in no manner indicate that
Landlord  believes the Approved  Construction  Documents are in compliance  with
applicable codes, law and regulations.

     1.5 Base Building.  Landlord shall be responsible  for the costs to rectify
any failure of the base Building (including,  without limitation,  the bathrooms
on the 15th floor of the Building),  Base Building systems (including  elevators
and elevator  buttons),  or "shell," portions of the Additional Office Space (as
opposed to the Initial  Leasehold  Improvements,  either those existing or to be
installed by Landlord) to comply with applicable governmental laws, regulations,
codes and ordinances in effect on the Effective  Date.  Landlord  represents and
warrants  that  there  are no  restrictions  affecting  the  Building  which are
applicable  to  the  construction  and  installation  of the  Initial  Leasehold
Improvements.  In  addition,  Landlord  shall be  responsible  for all  costs of
construction  of the  ceiling  and above,  including,  without  limitation,  the
ceiling tile and grid,  lighting including wiring and switching,  HVAC inclusing
ductwork, diffusers and thermostats (collectively, the "Landlord Work").

                                   ARTICLE II

                                  Construction

     2.1  Employment  of  Contractors.  The Landlord  will enter into a contract
agreement with an unaffiliated  third-party contractor,  for the construction of
the Initial  Leasehold  Improvements  in  accordance  with the Approved  Working
Drawings.  Landlord  shall be  solely  responsible  for all  payments  and other
liabilities or obligations to, and any liens or claims asserted by,  contractors
or other persons  employed by Landlord in connection with the Initial  Leasehold
Improvements.

     2.2  Selection of Contractors.  Intentionally Deleted.

     2.3  Construction  Contract(s).   Construction  of  the  Initial  Leasehold
Improvements  shall be  accomplished by Landlord in accordance with the Approved
Working Drawings under the terms of a single  Construction  Contract (herein so-
called).  Landlord shall provide Tenant a copy of the Construction  Contract not
less than ten (10) days prior to the scheduled commencement of construction. The
Construction Contract shall:

     (a) Provide for a guaranteed maximum cost for the entire cost of the work.

     (b)  Separately  state and account for the costs and any associated fee for
the  modifications  to the Base  Building,  Base  Building  systems  and "shell"
portions   of  the  Leased   Premises,   which  costs  and  fees  shall  be  the
responsibility  of Landlord  pursuant to Section 1.5 above and shall not be part
of Tenant's Construction Costs.

     (c) Require insurance coverage in amounts and types mutually and reasonably
acceptable to Landlord and Tenant.

     (d)  Provide  that  both  Landlord  and  Tenant  shall  have  the  right to
disapprove the employment of any subcontractor.

     (e) Provide for a schedule  and  sequence of  construction  activities  and
completion reasonably acceptable to Tenant.

     (f) Otherwise be in a form mutually and  reasonably  acceptable to Landlord
and Tenant including warranties of construction in a good and workmanlike manner
that shall survive the Leasehold Improvement Deemed Completion Date for not less
than one (1) year.

     (g) Not be amended without tenant's prior written consent.

     (h)  Separately  state and  account  for the cost and any  associated  fees
relating to the removal and disposal of the asbestos containing materials in the
Additional  Office Space, such cost and expense to be paid by Landlord and shall
not be deemed part of Tenant's Construction Costs (as hereinafter defined).

     (i)  Separately  state and  account  for the cost and any  associated  fees
relating to the cost of construction of the Landlord Work.

                                   ARTICLE III

                                   Completion

     3.1 Completion Date. The "Completion Date" means the date on which Tenant's
architect  issues  a  certificate  of  Substantial  Completion  for all  Initial
Leasehold  Improvements  in the Additional  Office Space in compliance  with the
following procedures and standards:

     (a) When Landlord believes that the Initial  Leasehold  Improvements in the
Additional Office Space have been substantially completed in accordance with the
Approved Construction Documents,  Landlord, Tenant, and Tenant's architect shall
walk through and inspect the Initial  Leasehold  Improvements  in the Additional
Office Space.

     (b) The Initial Leasehold Improvements in the Additional Office Space shall
be  considered   substantially   completed  if  they  conform  to  the  Approved
Construction  Documents  and are capable of being  occupied  for their  intended
purpose exclusive of touch-up,  minor finish, and similar so-called "punch-list"
items that do not  unreasonably  interfere with  occupancy or Tenant's  business
activities.  The "punch-list" items shall be completed within sixty (60) days of
the Completion Date.

     (c) Tenant's  architect  shall attach to each  certificate  of  Substantial
Completion a list of all  punch-list  items needed to achieve final  completion.
Landlord  shall  complete all  punch-list  items  identified in any  Substantial
Completion certificate as soon as possible.

     (d) If  Landlord  and  Tenant  disagree  as to any  particular  matters  of
architectural  judgment,  and such dispute  cannot be resolved by Landlord's and
Tenant's  respective  architects,  then  the  issue  shall  be  submitted  to an
independent  architect selected by Landlord's and Tenant's respective architects
for resolution,  and the  determination of such  independent  architect shall be
binding on both parties.

     3.2  Leasehold   Improvements   Deemed   Completion  Date.  The  "Leasehold
Improvements  Deemed  Completion  Date" of this Lease shall be the date on which
each of the following  conditions have been satisfied,  less the total number of
days of Tenant Delay (as hereinafter defined):

     (a) The  Completion  Date has  occurred  for all of the  Additional  Office
Space; and

     (b) Landlord has  delivered to Tenant a  certificate  of occupancy  for the
Additional  Office  Space  issued  by the city or other  appropriate  government
jurisdiction in which the Project is located.

     3.3 Early Occupancy. Tenant may take early occupancy of all or a portion of
the  Additional  Office  Space  if  permitted  under  applicable  law  once  the
Completion Date has occurred.

                                   ARTICLE IV

                                Schedule & Delays

     4.1 Completion  Schedule.  Landlord shall use its diligent efforts to cause
the Additional Office Space to be Substantially  Complete no later than December
1, 1995, subject to Tenant Delay.

     4.2  Tenant Delays.  "Tenant Delay" means any of the following:

     (a) Delays in obtaining any building  permits or  certificates of occupancy
attributable to errors or omissions by Tenant's architects or engineers.

     (b) Delays  resulting  from  change  orders  (authorized  by Tenant) to the
Approved  Construction  Documents  or  the  Construction  Contract  executed  in
accordance with the provisions of this EXHIBIT B.

     (c) Delays  attributable to the  nonavailability or excess procurement time
for specifically  fabricated materials or equipment  specifically  identified by
Landlord  as  having  the  potential  to  cause a Tenant  Delay in the  Approved
Construction  Documents or as part of the bidding  process for the  Construction
Contract.

     (d) Any other delay in the completion of the Initial Leasehold Improvements
caused by Tenant,  its  employees,  contractors  or agents  (including,  without
limitation, Tenant's design professionals).

     Any Tenant  Delay must be  claimed by written  notice to Tenant  within ten
(10) days after the  beginning of the  circumstances  that  constitutes a Tenant
Delay. Failure to deliver the written notice within the required time waives the
particular Tenant Delay.  Notwithstanding the above, subsections (a) through (d)
of this Section 4.2 shall only be  considered  Tenant  Delays to the extent such
items actually delay the Leasehold  Improvements  Completion Date and such delay
is not attributable to a delay resulting from Landlord's actions or omissions.

                                    ARTICLE V

                               Costs & Allowances

     5.1 Tenant's  Construction Cost.  "Tenant's  Construction  Costs" means the
total amount  actually paid by Landlord under the  Construction  Contract(s) for
the Initial Leasehold Improvements,  including labor, material, and fees, and as
increased  or decreased  pursuant to any change  order  executed by Landlord and
Tenant in accordance with the provisions of this EXHIBIT B.

     5.2  Construction Administration Fee.  Intentionally Deleted.

     5.3  Allowances.  Tenant  shall  receive  an  allowance  (the  "Improvement
Allowance") in an amount up to Sixty-Eight Thousand Forty-Two and No/100 Dollars
($68,042.00) to be applied to the payment and/or  reimbursement  of the Tenant's
Construction  Costs.  Landlord  shall  maintain  and make  available  to  Tenant
accurate records of any and all  disbursements of the Improvement  Allowance for
payment of Tenant's  Construction  Costs, along with draw requests signed by the
contractor(s) and other bills or invoices.

     5.4 Final  Accounting  of  Allowances.  Within  thirty  (30) days after the
Leasehold  Improvements  Deemed Completion Date, Landlord shall furnish Tenant a
final accounting of the disbursement of the Improvement Allowance.  In the event
the  Improvement  Allowance is not fully  advanced by  Landlord,  Tenant may (a)
utilize the remainder  for  improvements  to the  fifteenth  (15th) floor common
area,  provided  such  improvements  are  approved  by Landlord or (b) receive a
credit  against the next Rent payable under the Lease equal to one-half (1/2) of
the  unadvanced  portion of the  Improvement  Allowance.  Any costs and expenses
incurred by Landlord in connection with the construction of any Tenant requested
improvements  to the  fifteenth  (15th)  floor  common  area  shall be  promptly
reimbursed by Tenant,  subject to Tenant's right to apply the unadvanced portion
of the Improvement Allowance against any such costs and expenses as set forth in
the  immediately  preceding  sentence.  If the aggregate  amount of the cost and
expense  of the  Tenant's  Construction  Costs  which are paid by  Landlord  are
greater than the Improvement Allowance, the excess shall be paid by Landlord and
Tenant  shall  elect by notice in writing to Landlord  to either:  (y)  promptly
reimburse Landlord for such excess amount or (z) increase the Base Rental by the
amount  necessary  to  fully  amortize  such  excess  amount  in  equal  monthly
installments  at the rate of ten percent  (10%) per annum over the  remainder of
the term of the  Lease,  beginning  with the  first  payment  of that is due and
payable to Landlord after the Leasehold  Improvements Deemed Completion Date. In
the event Tenant fails to deliver  written  notice of its election of either (y)
or (z) above prior to the Leasehold  Improvements  Completion Date, Tenant shall
be deemed to have elected (y) above and Tenant shall make payment of such excess
amount  within  fifteen  (15) days after  receipt  from  Landlord  of an invoice
setting forth such excess amount.

                                   ARTICLE VI

                                Other Provisions

     6.1 Changes. Tenant may make changes in the Approved Construction Documents
or the  Construction  Contract(s) only if Tenant signs a change order requesting
the change,  and then only if the change is consistent with applicable codes and
laws and does not  materially  impact the  mechanical,  electrical,  plumbing or
structural  components  of the  Building.  Landlord  may require  changes in the
Approved Construction Documents or Construction Contract(s) only if necessary to
comply with applicable  building codes and other laws, and then only if Landlord
and Tenant sign a change order. The terms "Approved Construction  Documents" and
"Construction  Contract" shall be deemed to include only changes authorized by a
change order signed by Landlord and Tenant in accordance with this Section.

     6.2 Warranty.  TENANT ACKNOWLEDGES THAT THE INITIAL LEASEHOLD  IMPROVEMENTS
WILL  BE  CONSTRUCTED  BY A  CONTRACTOR  UNAFFILIATED  WITH  LANDLORD  AND  THAT
ACCORDINGLY,  EXCEPT AS OTHERWISE SET FORTH IN THIS LEASE, LANDLORD HAS MADE AND
WILL MAKE NO  WARRANTIES  TO TENANT AS TO THE  QUALITY  OF  CONSTRUCTION  OF THE
INITIAL  LEASEHOLD  IMPROVEMENTS  OR OF THE  CONDITION OF THE INITIAL  LEASEHOLD
IMPROVEMENTS  UPON  COMPLETION  THEREOF,  EITHER  EXPRESS OR  IMPLIED,  AND THAT
LANDLORD AND TENANT EXPRESSLY  DISCLAIM ANY IMPLIED WARRANTY THAT THE ADDITIONAL
OFFICE SPACE IS OR WILL BE SUITABLE FOR TENANT'S  INTENDED  COMMERCIAL  PURPOSE,
Landlord  agrees,   however,  that  if  any  defect  in  the  Initial  Leasehold
Improvements is discovered,  Landlord will diligently pursue and seek to enforce
any warranties  and/or to pursue any other liability of the General  Contractor,
any  subcontractor  which  performed  defective  work or supplied  or  installed
defective  materials,  the manufacturer of any defective materials  incorporated
therein, and any other person or entity which provided defective labor, material
or professional services in connection with the Initial Leasehold  Improvements;
provided, however, that in no event shall Landlord be obligated to institute any
litigation  or other legal process in  connection  therewith.  If for any reason
Tenant is dissatisfied with Landlord's efforts to enforce any such warranties or
liabilities,   or  if  Landlord  determines  that  Landlord  has  exhausted  its
obligation  to pursue  such claims  without  obtaining  a  rectification  of the
defect,  then upon Tenant's  request  Landlord will assign to Tenant any and all
warranties  and  causes  of  action  for  such  defective  labor,  materials  or
professional services; provided, however, that all such warranties and causes of
action shall  automatically  revert to Landlord  upon the  expiration or earlier
termination of this Lease.

     6.3  Authorized  Construction  Representative.  Tenant and  Landlord  shall
furnish  the  other  party  with a  written  list  of  such  party's  authorized
construction  representative  for the Initial Leasehold  Improvements.  Only the
authorized  construction  representative so designated is authorized to sign any
change order, disbursement request for any Allowance, receipt, or other document
on behalf of such  party  related to the  Initial  Leasehold  Improvements,  and
without the signature of such an authorized construction representative, no such
document shall be binding upon the respective party. Each party may from time to
time change its authorized construction representative by giving the other party
written  notice  of  the  addition  or  change.   Tenant's  initial   designated
representatives   are  Allyn  Skelton  and  Ric  Robinson.   Landlord's  initial
designated representative is Robert Gauss.EXHIBIT 10.8
                       SECOND AMENDMENT TO LEASE AGREEMENT

     This Second  Amendment to Lease  Agreement  (this  "Second  Amendment")  is
entered into by and between TEXAS COMMERCE BANK NATIONAL ASSOCIATION, a national
banking association ("Landlord") and HOWELL CORPORATION,  a Delaware corporation
("Tenant").

                              W I T N E S S E T H:

     WHEREAS,  Landlord and Tenant  entered into that  certain  Lease  Agreement
dated  December 13, 1993 (the  "Original  Lease"),  wherein  Landlord  leased to
Tenant  approximately  45,527  square feet of Net  Rentable  Area (the  "Initial
Office Space")  located on the fifteenth  (15th) and sixteenth  (16th) floors of
the  building  (the  "Building")  located at 1111 Fannin in the City of Houston,
Harris  County,  Texas and 2,000 square feet of Net Rentable  Area (the "Storage
Space") on the basement level of the Building; and

     WHEREAS,  Landlord and Tenant  amended the Original  Lease  pursuant to the
terms and conditions of that certain First  Amendment to Lease  Agreement  dated
October 20, 1995 (the "First  Amendment") (the Original Lease, as amended by the
First Amendment, is herein referred to as the "Lease"); and

     WHEREAS,  Landlord  and  Tenant  desire  to  further  amend  the  Lease  in
accordance with the terms and conditions set forth below;

     NOW,  THEREFORE,  for and in  consideration  of the duties,  covenants  and
obligations of each to the other  hereunder,  the Leased Premises and other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
confessed and  acknowledged,  Landlord and Tenant hereby agree to amend,  and do
hereby amend,  the Lease as follows (all terms defined in the Lease shall,  when
used herein,  have the same meanings as set forth in the Lease unless  otherwise
defined herein):

     1. The annual  Base  Rental  payable  for the Leased  Premises  pursuant to
Section 2.01 of the Lease shall be as follows:

     (a) Commencing on January 15, 1996 and  continuing  through April 14, 1999,
(i) Eleven and No/100  Dollars  ($11.00)  per square foot of Net  Rentable  Area
within the Office Space and (ii) Six and No/100 Dollars  ($6.00) per square foot
of Net Rentable Area within the Storage Space,  payable in monthly  installments
equal  to   Forty-Seven   Thousand  Five  Hundred   Thirty  and  92/100  Dollars
($47,530.92) each, and

     (b) For the period  commencing  on April 15,  1999 and  continuing  through
April 14, 2005, (i) Thirteen and No/100 Dollars  ($13.00) per square foot of Net
Rentable  Area within the Office Space and (ii) Six and No/100  Dollars  ($6.00)
per square  foot of Net  Rentable  Area  within the  Storage  Space,  payable in
monthly  installments  equal to Fifty-Five  Thousand Nine Hundred Ninety-One and
08/100 Dollars ($55,991.08) each.

     2.  Section  10.01 of the Lease is hereby  deleted in its  entirety and the
following shall be substituted in its place:

     "10.01  Expansion  Option.  (a)  Tenant  shall have the  additional  option
("First Expansion Option"), by providing written notice thereof to Landlord (the
"First Expansion Election Notice") at any time between April 1. 1996 and October
1, 1996, to include under this Lease an additional 4,000 to 5,000 square feet of
Net Rentable Area on the fifteenth  (15th) Floor of the Building.  The amount of
additional space to be included under this Lease pursuant to the First Expansion
Option shall be identified by Tenant in the First Expansion Election Notice. The
actual  space to be included  under this Lease  pursuant to the First  Expansion
Option  shall  be  designated  by  Landlord,  provided,  however,  it  shall  be
internally  contiguous and contiguous to the then existing  Leased  Premises and
shall have a reasonable  configuration (the "First Expansion  Space").  Landlord
and Tenant  shall then enter into an amendment to this Lease to cover such First
Expansion  Space on the same  terms and  provisions  then in effect  under  this
Lease,  except as otherwise  provided  hereunder  and except that (i) the annual
Base Rental rate for the First  Expansion Space shall be adjusted to reflect the
lesser of (A) the  Prevailing  Rental  Rate as of the date such First  Expansion
Space will be made  available  to Tenant or (B) the annual  Base Rental Rate set
forth in this Lease,  (ii) Landlord shall not be required to provide (but may do
so at its option and with Tenant's consent) any improvement allowance, abatement
of Rent, or other incentives,  inducements or allowances,  (iii) Tenant shall be
entitled to one additional (1) unreserved  parking permit per 680 square feet of
Net  Rentable  Area  leased  pursuant  to such First  Expansion  Option,  at the
prevailing market rate therefor as of the addition of such First Expansion Space
to the  Leased  Premises,  and  thereafter  adjust in  accordance  with any such
changes to such market  charges,  (iv) Tenant shall not have the right to assign
its expansion rights to any sublessee of the Leased  Premises,  nor may any such
sublessee exercise such expansion rights, and (v) the First Expansion Space will
be  provided  in its then  existing  condition  (on an "as is" basis;  provided,
however,  Landlord shall remove and dispose of any Existing  Asbestos located in
the First  Expansion  Space,  other than the  Existing  Asbestos  located on the
perimeter columns of the First Expansion Space). The First Expansion Space shall
be made  available  to Tenant  between  October  1, 1996 and  February  1, 1997.
Tenant's  obligation to commence paying Rent on such First Expansion Space shall
commence  on the  earliest  to occur of (1)  Tenant's  occupancy  of such  First
Expansion Space for the purpose of conducting business  therefrom,  or (2) sixty
(60) days  following the delivery of such First  Expansion  Space by Landlord to
Tenant.  Landlord shall, at Landlord's cost and expense, be required to make any
alterations to the First  Expansion Space and the Building which are required by
law in order to provide such space to Tenant (i.e. corridors, access, etc.)

     (b) Tenant shall have the additional option ("Second Expansion Option"), by
providing  written  notice thereof to Landlord (the "Second  Expansion  Election
Notice")at  any time between  March 1, 1997 and  September  1, 1997,  to include
under this Lease an  additional  4,000 to 5,000 square feet of Net Rentable Area
on the fifteenth (15th) Floor of the Building. The amount of additional space to
be included  under this Lease pursuant to the Second  Expansion  Option shall be
identified by Tenant in the Second Expansion  Election Notice.  The actual space
to be included under this Lease pursuant to the Second Expansion Option shall be
designated by Landlord, provided, however, it shall be internally contiguous and
contiguous  to the then  existing  Leased  Premises  and shall have a reasonable
configuration  (the "Second  Expansion  Space").  Landlord and Tenant shall then
enter into an  amendment to this Lease to cover such Second  Expansion  Space on
the same  terms  and  provisions  then in effect  under  this  Lease,  except as
otherwise provided hereunder and except that (i) the annual Base Rental rate for
the Second  Expansion  Space  shall be adjusted to reflect the lesser of (A) the
Prevailing  Rental Rate, as of the date such Second Expansion Space will be made
available  to Tenant or (B) the annual Base Rental Rate set forth in this Lease,
(ii) Landlord  shall not be required to provide (but may do so at its option and
with Tenant's  consent) any improvement  allowance,  abatement of Rent, or other
incentives,  inducements  or  allowances,  (ii) Tenant  shall be entitled to one
additional  (1)  unreserved  parking  permit per 680 square feet of Net Rentable
Area leased pursuant to such Second  Expansion  Option at the prevailing  market
rate  therefor as of the addition of such Second  Expansion  Space to the Leased
Premises,  and  thereafter  adjust in  accordance  with any such changes to such
market  charges,  (iii) Tenant shall not have the right to assign its  expansion
rights to any  sublessee  of the  Leased  Premises,  nor may any such  sublessee
exercise such  expansion  rights,  and (iv) the Second  Expansion  Space will be
provided in its then existing condition (on an "as is" basis; provided, however,
Landlord shall remove and dispose of any Existing Asbestos located in the Second
Expansion  Space,  other than the  Existing  Asbestos  located on the  perimeter
columns of the Second Expansion Space). The Second Expansion Space shall be made
available  to Tenant  between  September  1, 1997 and January 1, 1998.  Tenant's
obligation to commence paying Rent on such Second Expansion Space shall commence
on the  earliest to occur of (1)  Tenant's  occupancy  of such Second  Expansion
Space for the purpose of conducting business  therefrom,  or (2) sixty (60) days
following  the  delivery of such Second  Expansion  Space by Landlord to Tenant.
Landlord  shall,  at  Landlord's  cost  and  expense,  be  required  to make any
alterations to the Second Expansion Space and the Building which are required by
law in order to provide such space to Tenant (i.e corridors, access, etc.)

     (c) In the  event  Tenant  exercises  its  right  under  either  the  First
Expansion  Option or the Second  Expansion  Option,  but  objects to  Landlord's
determination  of the Prevailing  Rental Rate,  then the Prevailing  Rental Rate
shall be  determined  in  accordance  with the  procedure  set forth in  Section
12.02(l) of this Lease.

     (d)  Notwithstanding  anything  in  this  Section  10.01  to the  contrary,
Tenant's First Expansion  Option and Second  Expansion Option shall terminate if
this Lease or Tenant's right to possession of the Leased Premises is terminated,
or if Tenant fails to timely exercise the First  Expansion  Option or the Second
Expansion  Option;  provided,  however,  Tenant's failure to timely exercise the
First Expansion Option shall not result in a termination of the Second Expansion
Option."

     3. The Lease is hereby  amended by  deleting  Section  11.01-  Preferential
Right thereof in its entirety.

     4.  EXHIBIT B  attached  to the First  Amendment  is hereby  deleted in its
entirety and EXHIBIT B attached hereto shall be substituted in its place.

     5. Landlord agrees to pay to Trione & Gordon  ("Landlord's  Broker") a real
estate brokerage commission as set forth in a separate listing agreement between
Landlord and Landlord's  Broker and Landlord agrees to pay Montgomery,  Conine &
Robinson and McDade, Smith & Co. (collectively, "Tenant's Broker") a real estate
brokerage  commission  as set forth in a  separate  commission  agreement  dated
October 20, 1993,  by and between  Landlord and  Tenant's  Broker.  Landlord and
Tenant  hereby  represent  and  warrant  each to the  other  that  they have not
employed any other agents, brokers or other such parties in connection with this
Second  Amendment,  and each agrees that they shall hold the other harmless from
and  against  any and all  claims of all other  agents,  brokers  or other  such
parties claiming by, through or under the respective indemnifying party.

     6.  Except as  expressly  provided  herein,  the Leased  Premises  shall be
governed by the same terms and  conditions as set forth in the Lease.  The Lease
as hereby  amended is hereby  ratified  and  affirmed  and,  except as expressly
amended hereby, all other items and provisions of the Lease remain unchanged and
continue  to be in full force and  effect.  The terms of this  Second  Amendment
shall control over any conflicts between the terms of the Lease and the terms of
this Second Amendment.

     7. The Lease, as amended by this Second  Amendment,  constitutes the entire
agreement and  understanding  between the parties hereto relating to the subject
matter hereof and all prior agreements, proposals, negotiations,  understandings
and correspondence  between the parties in this regard, whether written or oral,
are hereby superseded and merged herewith.

     IN WITNESS  WHEREOF,  this Second  Amendment may be executed by the parties
hereto on separate multiple counterparts, each of which shall be deemed to be an
original,  executed to be effective  as of the 21st day of  November,  1995 (the
"Effective Date").

                                   "Landlord"

                                   TEXAS COMMERCE BANK
                                   NATIONAL ASSOCIATION,
                                   a national banking association

                                   By:       /s/ Robert P. Gauss
                                             ----------------------
                                   Name:     Robert P. Gauss
                                   Title:    Vice President

                                    "Tenant"

                                   HOWELL CORPORATION,
                                   a Delaware corporation

                                   By:       /s/ Paul N. Howell
                                             ---------------------
                                   Name:     Paul N. Howell
                                   Title:    President
                                    EXHIBIT B

                 CONSTRUCTION OF INITIAL LEASEHOLD IMPROVEMENTS

     Landlord shall cause the Initial  Leasehold  Improvements to be constructed
in the Additional  Office Space in accordance  with this EXHIBIT B. The "Initial
Leasehold Improvements" consist of all improvements and tenant finish desired by
Tenant in the Additional Office Space.

                                    ARTICLE I

                   Design of the Initial Leasehold Improvement

     1.1 Design  Professionals.  All plans and  specifications  relating  to the
Initial  Leasehold  Improvements  shall be prepared by architects  and engineers
selected  and  employed by Tenant and  approved by  Landlord.  Tenant may employ
other consultants of its selection to assist with the design and construction of
the Initial Leasehold Improvements,  Tenant's architects,  engineers,  and other
consultants  shall be afforded access to all work in progress at the Building or
in the  Additional  Office  Space.  Landlord has  approved  Kirksey and Partners
Architects as Tenant's design professionals.

     1.2  Approval of Space  Plans.  Tenant  shall have  prepared  and submit to
Landlord for approval a set of preliminary plans (the "Proposed Space Plans") in
the form of a schematic design providing a conceptual  layout and description of
the Initial Leasehold Improvements. Within ten (10) business days after delivery
of the Proposed  Space Plans to  Landlord,  Landlord  shall  either  approve the
Proposed Space Plans or notify Tenant of the item(s) of the Proposed Space Plans
that Landlord  disapproves and the reason(s) therefor.  If Landlord  disapproves
the Proposed Space Plans,  Tenant shall revise and resubmit same to Landlord for
approval  (the  "Revised  Space  Plans").  Within five (5)  business  days after
delivery of the Revised Space Plans to Landlord,  Landlord  shall either approve
the  Revised  Space Plans or notify  Tenant of the item(s) of the Revised  Space
Plans  which  Landlord  disapproves  and the  reason(s)  therefor.  If  Landlord
disapproves  the Revised Space Plans,  Tenant shall further  revise and resubmit
same to Landlord for approval,  which process shall continue until the plans are
approved.  Landlord shall have five (5) business days after delivery of the each
set of Revised  Space Plans to either  approve the Revised Space Plans or notify
Tenant of the item(s) of the Revised Space Plans which Landlord  disapproves and
the reason(s)  therefor.  The Proposed  Space Plans or Revised  Space Plans,  as
approved by Landlord, are hereinafter referred to as the "Approved Space Plans".

     1.3 Approval of Construction  Documents.  Upon  Landlord's  approval of the
Approved Space Plans,  Tenant shall have prepared,  by a licensed  architect and
engineer  acceptable  to Landlord in  Landlord's  sole and absolute  discretion,
construction  drawings  (in  accordance  with  the  Approved  Space  Plans)  and
specifications  including complete sets of detailed  architectural,  structural,
mechanical, electrical and plumbing working drawings (the "Proposed Construction
Documents") for the Initial Tenant  Improvements  and shall deliver the Proposed
Construction  Documents to Landlord for approval.  Within ten (10) business days
after  delivery of the Proposed  Construction  Documents  to Landlord,  Landlord
shall either approve the Proposed Construction Documents or notify Tenant of the
item(s) of the Proposed Construction Documents that Landlord disapproves and the
reason(s) therefor. If Landlord disapproves the Proposed Construction Documents,
Tenant  shall revise and resubmit  same to Landlord for approval  (the  "Revised
Construction  Documents").  Within five (5) business days after  delivery of the
Revised  Construction  Documents to Landlord,  Landlord shall either approve the
Revised  Construction  Documents or notify  Tenant of the item(s) of the Revised
Construction Documents which Landlord disapproves and the reason(s) therefor. If
Landlord  disapproves the Revised Construction  Documents,  Tenant shall further
revise and resubmit same to Landlord for approval,  which process shall continue
until the plans are approved.  Landlord  shall have five (5) business days after
delivery of each set of Revised  Construction  Documents  to either  approve the
Revised  Construction  Documents or notify  Tenant of the item(s) of the Revised
Construction  Documents which Landlord  disapproves and the reason(s)  therefor.
The  Proposed  Construction  Documents  or Revised  Construction  Documents,  as
approved by Landlord,  are hereinafter referred to as the "Approved Construction
Documents".

     1.4  Information  and Approval  Standards.  Within three (3) days after any
written  request  submitted  from  time  to time by  Tenant  or its  architects,
engineers,   or  other   consultants,   Landlord   shall   furnish   any  plans,
specifications,  drawings,  samples,  or other  materials or information  within
Landlord's  possession  reasonably related to the design and construction of the
Initial Leasehold  Improvements.  Tenant acknowledges,  however, that Landlord's
approval of the Approved Construction Documents shall in no manner indicate that
Landlord  believes the Approved  Construction  Documents are in compliance  with
applicable codes, law and regulations.

     1.5 Base Building.  Landlord shall be responsible  for the costs to rectify
any failure of the base Building (including,  without limitation,  the bathrooms
on the 15th floor of the Building),  Base Building systems (including  elevators
and elevator  buttons),  or "shell," portions of the Additional Office Space (as
opposed to the Initial  Leasehold  Improvements,  either those existing or to be
installed by Landlord) to comply with applicable governmental laws, regulations,
codes and ordinances in effect on the Effective  Date.  Landlord  represents and
warrants  that  there  are no  restrictions  affecting  the  Building  which are
applicable  to  the  construction  and  installation  of the  Initial  Leasehold
Improvements.  In  addition,  Landlord  shall be  responsible  for all  costs of
construction  of the  ceiling  and above,  including,  without  limitation,  the
ceiling tile and grid,  lighting including wiring and switching,  HVAC inclusing
ductwork, diffusers and thermostats (collectively, the "Landlord Work").

                                   ARTICLE II

                                  Construction

     2.1  Employment  of  Contractors.  The Landlord  will enter into a contract
agreement with an unaffiliated  third-party contractor,  for the construction of
the Initial Leasehold  Improvements in accordance with the Approved Construction
Documents.  Landlord  shall be solely  responsible  for all  payments  and other
liabilities or obligations to, and any liens or claims asserted by,  contractors
or other persons  employed by Landlord in connection with the Initial  Leasehold
Improvements.

     2.2 Selection of Contractors. Intentionally Deleted.

     2.3  Construction  Contract(s).   Construction  of  the  Initial  Leasehold
Improvements  shall be  accomplished by Landlord in accordance with the Approved
Construction Documents under the terms of a single Construction Contract (herein
so-called).  Landlord shall provide Tenant a copy of the  Construction  Contract
not less than ten (10) days prior to the scheduled commencement of construction.
The Construction Contract shall:

     (a) Provide for a guaranteed maximum cost for the entire cost of the work.

     (b)  Separately  state and account for the costs and any associated fee for
the  modifications  to the Base  Building,  Base  Building  systems  and "shell"
portions   of  the  Leased   Premises,   which  costs  and  fees  shall  be  the
responsibility  of Landlord  pursuant to Section 1.5 above and shall not be part
of Tenant's Construction Costs.

     (c) Require insurance coverage in amounts and types mutually and reasonably
acceptable to Landlord and Tenant.

     (d)  Provide  that  both  Landlord  and  Tenant  shall  have  the  right to
disapprove the employment of any subcontractor.

     (e) Provide for a schedule  and  sequence of  construction  activities  and
completion reasonably acceptable to Tenant.

     (f) Otherwise be in a form mutually and  reasonably  acceptable to Landlord
and Tenant including warranties of construction in a good and workmanlike manner
that shall survive the Completion Date for not less than one (1) year.

     (g) Not be amended without tenant's prior written consent.

     (h)  Separately  state and  account  for the cost and any  associated  fees
relating to the removal and disposal of the asbestos containing materials in the
Additional  Office Space, such cost and expense to be paid by Landlord and shall
not be deemed part of Tenant's Construction Costs (as hereinafter defined).

     (i)  Separately  state and  account  for the cost and any  associated  fees
relating to the cost of construction of the Landlord Work.

                                   ARTICLE III

                                   Completion

     3.1 Completion Date. The "Completion Date" means the date on which Tenant's
architect  issues  a  certificate  of  Substantial  Completion  for all  Initial
Leasehold  Improvements  in the Additional  Office Space in compliance  with the
following procedures and standards:

     (a) When Landlord believes that the Initial  Leasehold  Improvements in the
Additional Office Space have been substantially completed in accordance with the
Approved Construction Documents,  Landlord, Tenant, and Tenant's architect shall
walk through and inspect the Initial  Leasehold  Improvements  in the Additional
Office Space.

     (b) The Initial Leasehold Improvements in the Additional Office Space shall
be  considered   substantially   completed  if  they  conform  to  the  Approved
Construction  Documents  and are capable of being  occupied  for their  intended
purpose exclusive of touch-up,  minor finish, and similar so-called "punch-list"
items that do not  unreasonably  interfere with  occupancy or Tenant's  business
activities.  The "punch-list" items shall be completed within sixty (60) days of
the Completion Date.

     (c) Tenant's  architect  shall attach to each  certificate  of  Substantial
Completion a list of all  punch-list  items needed to achieve final  completion.
Landlord  shall  complete all  punch-list  items  identified in any  Substantial
Completion certificate as soon as possible.

     (d) If  Landlord  and  Tenant  disagree  as to any  particular  matters  of
architectural  judgment,  and such dispute  cannot be resolved by Landlord's and
Tenant's  respective  architects,  then  the  issue  shall  be  submitted  to an
independent  architect selected by Landlord's and Tenant's respective architects
for resolution,  and the  determination of such  independent  architect shall be
binding on both parties.

      3.2  Early Occupancy.  Tenant may take early occupancy of all or a portion
of  the  Additional  Office Space if permitted under  applicable  law  once  the
Completion Date has occurred.

                                   ARTICLE IV

                                Schedule & Delays

     4.1 Completion  Schedule.  Landlord shall use its diligent efforts to cause
the Additional  Office Space to be Substantially  Complete no later than January
15, 1996, subject to Tenant Delay.

     4.2 Tenant Delays. "Tenant Delay" means any of the following:

     (a) Delays in obtaining any building  permits or  certificates of occupancy
attributable to errors or omissions by Tenant's architects or engineers.

     (b) Delays  resulting  from  change  orders  (authorized  by Tenant) to the
Approved  Construction  Documents  or  the  Construction  Contract  executed  in
accordance with the provisions of this EXHIBIT B.

     (c) Delays  attributable to the  nonavailability or excess procurement time
for specifically  fabricated materials or equipment  specifically  identified by
Landlord  as  having  the  potential  to  cause a Tenant  Delay in the  Approved
Construction  Documents or as part of the bidding  process for the  Construction
Contract.

     (d) Any other delay in the completion of the Initial Leasehold Improvements
caused by Tenant,  its  employees,  contractors  or agents  (including,  without
limitation, Tenant's design professionals).

     Any Tenant  Delay must be  claimed by written  notice to Tenant  within ten
(10) days after the  beginning of the  circumstances  that  constitutes a Tenant
Delay. Failure to deliver the written notice within the required time waives the
particular Tenant Delay.  Notwithstanding the above, subsections (a) through (d)
of this Section 4.2 shall only be  considered  Tenant  Delays to the extent such
items actually delay the Leasehold  Improvements  Completion Date and such delay
is not attributable to a delay resulting from Landlord's actions or omissions.

                                    ARTICLE V

                               Costs & Allowances

     5.1 Tenant's  Construction Cost.  "Tenant's  Construction  Costs" means the
total amount  actually paid by Landlord under the  Construction  Contract(s) for
the Initial Leasehold Improvements,  including labor, material, and fees, and as
increased  or decreased  pursuant to any change  order  executed by Landlord and
Tenant in accordance with the provisions of this EXHIBIT B.

     5.2 Construction Administration Fee. Intentionally Deleted.

     5.3 Architectural  and Engineering.  Tenant shall pay all architectural and
engineering  fees and expenses  associated  with the preparation of the Approved
Space Plans and the Approved Construction Documents.

     5.4  Allowances.  Tenant  shall  receive  an  allowance  (the  "Improvement
Allowance")  in  an  amount  up  to  Eighty-Two   Thousand  and  No/100  Dollars
($82,000.00) to be applied to the payment and/or  reimbursement  of the Tenant's
Construction  Costs.  Landlord  shall  maintain  and make  available  to  Tenant
accurate records of any and all  disbursements of the Improvement  Allowance for
payment of Tenant's  Construction  Costs, along with draw requests signed by the
contractor(s) and other bills or invoices.

     5.5 Final  Accounting  of  Allowances.  Within  thirty  (30) days after the
Completion  Date,  Landlord  shall  furnish  Tenant  a final  accounting  of the
disbursement  of  the  Improvement  Allowance.  In  the  event  the  Improvement
Allowance  is not  fully  advanced  by  Landlord,  Tenant  may (a)  utilize  the
remainder for improvements to the fifteenth  (15th) floor common area,  provided
such  improvements  are approved by Landlord or (b) receive a credit against the
next Rent  payable  under the Lease  equal to one-half  (1/2) of the  unadvanced
portion  of the  Improvement  Allowance.  Any costs  and  expenses  incurred  by
Landlord  in  connection  with  the   construction   of  any  Tenant   requested
improvements  to the  fifteenth  (15th)  floor  common  area  shall be  promptly
reimbursed by Tenant,  subject to Tenant's right to apply the unadvanced portion
of the Improvement Allowance against any such costs and expenses as set forth in
the  immediately  preceding  sentence.  If the aggregate  amount of the cost and
expense  of the  Tenant's  Construction  Costs  which are paid by  Landlord  are
greater than the Improvement Allowance, the excess shall be paid by Landlord and
Tenant  shall  elect by notice in writing to Landlord  to either:  (y)  promptly
reimburse Landlord for such excess amount or (z) increase the Base Rental by the
amount  necessary  to  fully  amortize  such  excess  amount  in  equal  monthly
installments  at the rate of ten percent  (10%) per annum over the  remainder of
the term of the  Lease,  beginning  with the  first  payment  of that is due and
payable to Landlord after the Leasehold  Improvements Deemed Completion Date. In
the event Tenant fails to deliver  written  notice of its election of either (y)
or (z) above prior to the Leasehold  Improvements  Completion Date, Tenant shall
be deemed to have elected (y) above and Tenant shall make payment of such excess
amount  within  fifteen  (15) days after  receipt  from  Landlord  of an invoice
setting forth such excess amount.

                                   ARTICLE VI

                                Other Provisions

     6.1 Changes. Tenant may make changes in the Approved Construction Documents
or the  Construction  Contract(s) only if Tenant signs a change order requesting
the change,  and then only if the change is consistent with applicable codes and
laws and does not  materially  impact the  mechanical,  electrical,  plumbing or
structural  components  of the  Building.  Landlord  may require  changes in the
Approved Construction Documents or Construction Contract(s) only if necessary to
comply with applicable  building codes and other laws, and then only if Landlord
and Tenant sign a change order. The terms "Approved Construction  Documents" and
"Construction  Contract" shall be deemed to include only changes authorized by a
change order signed by Landlord and Tenant in accordance with this Section.

     6.2 Warranty.  TENANT ACKNOWLEDGES THAT THE INITIAL LEASEHOLD  IMPROVEMENTS
WILL  BE  CONSTRUCTED  BY A  CONTRACTOR  UNAFFILIATED  WITH  LANDLORD  AND  THAT
ACCORDINGLY,  EXCEPT AS OTHERWISE SET FORTH IN THIS LEASE, LANDLORD HAS MADE AND
WILL MAKE NO  WARRANTIES  TO TENANT AS TO THE  QUALITY  OF  CONSTRUCTION  OF THE
INITIAL  LEASEHOLD  IMPROVEMENTS  OR OF THE  CONDITION OF THE INITIAL  LEASEHOLD
IMPROVEMENTS  UPON  COMPLETION  THEREOF,  EITHER  EXPRESS OR  IMPLIED,  AND THAT
LANDLORD AND TENANT EXPRESSLY  DISCLAIM ANY IMPLIED WARRANTY THAT THE ADDITIONAL
OFFICE SPACE IS OR WILL BE SUITABLE FOR TENANT'S  INTENDED  COMMERCIAL  PURPOSE,
Landlord  agrees,   however,  that  if  any  defect  in  the  Initial  Leasehold
Improvements is discovered,  Landlord will diligently pursue and seek to enforce
any warranties  and/or to pursue any other liability of the General  Contractor,
any  subcontractor  which  performed  defective  work or supplied  or  installed
defective  materials,  the manufacturer of any defective materials  incorporated
therein, and any other person or entity which provided defective labor, material
or professional services in connection with the Initial Leasehold  Improvements;
provided, however, that in no event shall Landlord be obligated to institute any
litigation  or other legal process in  connection  therewith.  If for any reason
Tenant is dissatisfied with Landlord's efforts to enforce any such warranties or
liabilities,   or  if  Landlord  determines  that  Landlord  has  exhausted  its
obligation  to pursue  such claims  without  obtaining  a  rectification  of the
defect,  then upon Tenant's  request  Landlord will assign to Tenant any and all
warranties  and  causes  of  action  for  such  defective  labor,  materials  or
professional services; provided, however, that all such warranties and causes of
action shall  automatically  revert to Landlord  upon the  expiration or earlier
termination of this Lease.

     6.3  Authorized  Construction  Representative.  Tenant and  Landlord  shall
furnish  the  other  party  with a  written  list  of  such  party's  authorized
construction  representative  for the Initial Leasehold  Improvements.  Only the
authorized  construction  representative so designated is authorized to sign any
change order, disbursement request for any Allowance, receipt, or other document
on behalf of such  party  related to the  Initial  Leasehold  Improvements,  and
without the signature of such an authorized construction representative, no such
document shall be binding upon the respective party. Each party may from time to
time change its authorized construction representative by giving the other party
written  notice  of  the  addition  or  change.   Tenant's  initial   designated
representatives   are  Allyn  Skelton  and  Ric  Robinson.   Landlord's  initial
designated representative is Robert Gauss.

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