Document:

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                                                                     EXHIBIT 4.3

                                                                  Execution Copy

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                                 TRUST AGREEMENT

                                     BETWEEN

                NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION
                                     SELLER

                                       AND

                 CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION

                                  OWNER TRUSTEE

                            DATED AS OF JUNE 5, 2003

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                                TABLE OF CONTENTS

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                                                                                                            PAGE
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ARTICLE I DEFINITIONS.........................................................................................1
     SECTION 1.1 Definitions..................................................................................1

ARTICLE II ORGANIZATION.......................................................................................1
     SECTION 2.1 Name  1
     SECTION 2.2 Office.......................................................................................1
     SECTION 2.3 Purposes and Powers..........................................................................1
     SECTION 2.4 Appointment of Owner Trustee.................................................................2
     SECTION 2.5 Initial Capital Contribution of Owner Trust Estate...........................................2
     SECTION 2.6 Declaration of Trust.........................................................................3
     SECTION 2.7 Liability of the Certificateholders..........................................................3
     SECTION 2.8 Title to Trust Property......................................................................3
     SECTION 2.9 Situs of Trust...............................................................................3
     SECTION 2.10 Representations and Warranties of the Seller................................................4

ARTICLE III THE CERTIFICATES..................................................................................5
     SECTION 3.1 Initial Certificate Ownership................................................................5
     SECTION 3.2 Form of the Certificates.....................................................................5
     SECTION 3.3 Execution, Authentication and Delivery.......................................................5
     SECTION 3.4 Registration; Registration of Transfer and Exchange of Certificates..........................6
     SECTION 3.5 Mutilated, Destroyed, Lost or Stolen Certificates............................................7
     SECTION 3.6 Persons Deemed Certificateholders............................................................8
     SECTION 3.7 Access to List of Certificateholders' Names and Addresses....................................8
     SECTION 3.8 Maintenance of Corporate Trust Office........................................................8
     SECTION 3.9 Appointment of Paying Agent..................................................................8
     SECTION 3.10 Seller as Certificateholder.................................................................9

ARTICLE IV ACTIONS BY OWNER TRUSTEE...........................................................................9
     SECTION 4.1 Prior Notice to Certificateholders with Respect to Certain Matters...........................9
     SECTION 4.2 Action by Certificateholders with Respect to Certain Matters................................10
     SECTION 4.3 Action by Certificateholders with Respect to Bankruptcy.....................................10
     SECTION 4.4 Restrictions on Certificateholders' Power...................................................10
     SECTION 4.5 Majority Control............................................................................10

ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES.........................................................11
     SECTION 5.1 Establishment of Certificate Distribution Account...........................................11
     SECTION 5.2 Application of Trust Funds..................................................................11
     SECTION 5.3 Method of Payment...........................................................................12
     SECTION 5.4 Accounting and Reports to the Certificateholders, the Internal
                 Revenue Service and Others..................................................................12
     SECTION 5.5 Signature on Returns........................................................................12
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<TABLE>
<S>                                                                                                          <C>
ARTICLE VI THE OWNER TRUSTEE.................................................................................12
     SECTION 6.1 Duties of Owner Trustee.....................................................................12
     SECTION 6.2 Authority of Owner Trustee..................................................................14
     SECTION 6.3 Acceptance of Trusts and Duties.............................................................14
     SECTION 6.4 Action upon Instruction by Certificateholders...............................................15
     SECTION 6.5 Furnishing of Documents.....................................................................16
     SECTION 6.6 Representations and Warranties of Owner Trustee.............................................16
     SECTION 6.7 Reliance; Advice of Counsel.................................................................17
     SECTION 6.8 Owner Trustee May Own Certificates and Notes................................................17
     SECTION 6.9 Compensation and Indemnity..................................................................17
     SECTION 6.10 Replacement of Owner Trustee...............................................................18
     SECTION 6.11 Merger or Consolidation of Owner Trustee...................................................19
     SECTION 6.12 Appointment of Co-Trustee or Separate Trustee..............................................19
     SECTION 6.13 Eligibility Requirements for Owner Trustee.................................................20

ARTICLE VII TERMINATION OF TRUST AGREEMENT...................................................................21
     SECTION 7.1 Termination of Trust Agreement..............................................................21

ARTICLE VIII AMENDMENTS......................................................................................22
     SECTION 8.1 Amendments Without Consent of Certificateholders or Noteholders.............................22
     SECTION 8.2 Amendments With Consent of Certificateholders and Noteholders...............................22
     SECTION 8.3 Form of Amendments..........................................................................23

ARTICLE IX MISCELLANEOUS.....................................................................................24
     SECTION 9.1 No Legal Title to Owner Trust Estate........................................................24
     SECTION 9.2 Limitations on Rights of Others.............................................................24
     SECTION 9.3 Notices.....................................................................................24
     SECTION 9.4 Severability................................................................................24
     SECTION 9.5 Counterparts................................................................................24
     SECTION 9.6 Successors and Assigns......................................................................24
     SECTION 9.7 No Petition Covenant........................................................................24
     SECTION 9.8 No Recourse.................................................................................25
     SECTION 9.9 Headings....................................................................................25
     SECTION 9.10 Governing Law..............................................................................25
     SECTION 9.11 Administrator..............................................................................25
     SECTION 9.12 Amended and Restated Trust Agreement.......................................................25
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                                    EXHIBITS

Exhibit A     Form of Certificate
Exhibit B     Form of Certificate of Trust

                                     - ii -

<PAGE>

          TRUST AGREEMENT, dated as of June 5, 2003 between Navistar Financial
Retail Receivables Corporation, a Delaware corporation, as Seller, and Chase
Manhattan Bank USA, National Association, a national banking association, as
Owner Trustee.

          WHEREAS, the Seller and the Owner Trustee desire to amend and restate
the original Trust Agreement, dated as of May 14, 2003, in its entirety.

          The Seller and the Owner Trustee hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     SECTION 1.1 Definitions. Certain capitalized terms used in this Agreement
shall have the respective meanings assigned to them in Part I of Appendix A to
the Pooling Agreement of even date herewith, between the Seller and the Trust
(as it may be amended and supplemented from time to time, the "Pooling
Agreement"). All references herein to "the Agreement" or "this Agreement" are to
this Trust Agreement as it may be amended and supplemented from time to time,
the Exhibits hereto and the capitalized terms used herein which are defined in
such Appendix A, and all references herein to Articles, Sections and subsections
are to Articles, Sections and subsections of this Agreement unless otherwise
specified. The rules of construction set forth in Part II of such Appendix A
shall be applicable to this Agreement.

                                   ARTICLE II
                                  ORGANIZATION

     SECTION 2.1 Name. The Trust continued hereby shall be known as "Navistar
Financial 2003-A Owner Trust" in which name the Owner Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and the Trust may sue and be sued.

     SECTION 2.2 Office. The office of the Trust shall be in care of the Owner
Trustee at the Corporate Trust Office of the Owner Trustee or at such other
address in Delaware as the Owner Trustee may designate by written notice to the
Certificateholders and the Seller.

     SECTION 2.3 Purposes and Powers. The purpose of the Trust is, and the Trust
shall have the power and authority, and is authorized, to engage in the
following activities:

               (i)     to acquire, manage and hold the Receivables and the
          Related Security;

               (ii)    to acquire, manage and hold the Series 2003-A Portfolio
          Certificate and the Series 2003-A Portfolio Interest represented
          thereby;

               (iii)   to issue the Notes pursuant to the Indenture and the
          Certificates pursuant to this Agreement, and to sell, transfer or
          exchange the Notes and to transfer and exchange the Certificates;

<PAGE>

               (iv)    to acquire property and assets from the Seller pursuant
          to the Pooling Agreement, to make payments or distributions on the
          Securities to the Securityholders, to make deposits into and
          withdrawals from the Reserve Account, the Pre-Funding Account, the
          Negative Carry Account and other accounts established pursuant to the
          Basic Documents and to pay the organizational, start-up and
          transactional expenses of the Trust;

               (v)     to assign, grant, transfer, pledge, mortgage and convey
          the Owner Trust Estate pursuant to the terms of the Indenture and to
          hold, manage and distribute to the Certificateholders pursuant to the
          terms of this Agreement, the Pooling Agreement and the Servicing
          Agreement any portion of the Owner Trust Estate released from the lien
          of, and remitted to the Trust pursuant to, the Indenture;

               (vi)    to enter into and perform its obligations and exercise
          its rights under the Basic Documents to which it is to be a party;

               (vii)   to engage in those activities, including entering into
          agreements, that are necessary, suitable, desirable or convenient to
          accomplish the foregoing or are incidental thereto or connected
          therewith; and

               (viii)  subject to compliance with the Basic Documents, to engage
          in such other activities as may be required in connection with
          conservation of the Owner Trust Estate and the making of payments or
          distributions to the Securityholders;

provided, however, that the Trust may enter into derivatives only if such
derivatives are passive and entered into concurrently with the execution of this
Agreement or, if entered into after the execution of this Agreement, are entered
into to replace a terminated derivative.

The Trust shall not engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this Agreement
or the Basic Documents.

     SECTION 2.4 Appointment of Owner Trustee. The Seller hereby appoints Chase
Manhattan Bank USA, National Association as trustee of the Trust (the "Owner
Trustee") effective as of the date hereof, to have all the rights, powers and
duties set forth herein.

     SECTION 2.5 Initial Capital Contribution of Owner Trust Estate. The Seller
hereby sells, assigns and transfers to the Trust, and conveys and sets over to
the Owner Trustee, on behalf of the Trust, as of the date hereof, the sum of $1.
The Owner Trustee hereby acknowledges receipt in trust from the Seller, as of
the date hereof, of the foregoing contribution, which shall constitute the
initial Owner Trust Estate and shall be deposited in the Certificate
Distribution Account. The Seller shall pay organizational expenses of the Trust
as they may arise or shall, upon the request of the Owner Trustee, promptly
reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.

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     SECTION 2.6 Declaration of Trust. The Owner Trustee hereby declares that it
shall hold the Owner Trust Estate in trust upon and subject to the conditions
and obligations set forth herein, in the Pooling Agreement and in the Servicing
Agreement for the use and benefit of the Certificateholders, subject to the
obligations of the Trust under the Basic Documents. It is the intention of the
parties hereto that the Trust constitute a statutory trust under the Statutory
Trust Statute, that this Agreement constitute the governing instrument of such
statutory trust and that the Certificates represent the beneficial interests
therein. The rights of the Certificateholders shall be determined as set forth
herein and in the Statutory Trust Statute and the relationship between the
parties hereto created by this Agreement shall not constitute indebtedness for
any purpose. It is the intention of the parties hereto that, solely for purposes
of federal income taxes, state and local income and franchise taxes, and any
other taxes imposed upon, measured by, or based upon gross or net income, the
Trust shall be treated as a division or branch of the Seller. The parties agree
that, unless otherwise required by appropriate tax authorities, the Trust shall
file or cause to be filed annual or other necessary returns, reports and other
forms consistent with the characterization of the Trust as a division or branch
of the Seller for such tax purposes; provided, however, that until the Seller
receives a ruling from the Illinois Department of Revenue or an opinion of
counsel reasonably acceptable to the Owner Trustee that the Trust will be
treated as a branch or division of the Seller for purposes of the Illinois
Income Tax Act and the Illinois Personal Property Tax Replacement Tax Act, for
purposes of the Illinois Income Tax Act and the Illinois Personal Property Tax
Replacement Tax Act, the Seller will (i) include the taxable income of the Trust
in the combined tax return filed by the combined group that includes the Seller,
(ii) take all steps necessary to treat the Trust as a member of the same
combined group of which the Seller is a member and (iii) provide information to
the Owner Trustee to confirm that the actions required by clauses (i) and (ii)
have been effected. Effective as of the date hereof, the Owner Trustee shall
have all rights, powers and duties set forth in this Agreement, the Pooling
Agreement, the Servicing Agreement and the Statutory Trust Statute with respect
to accomplishing the purposes of the Trust subject to the terms and conditions
of the Basic Documents.

     SECTION 2.7 Liability of the Certificateholders. No Certificateholder shall
have any personal liability for any liability or obligation of the Trust.

     SECTION 2.8 Title to Trust Property. Legal title to all the Owner Trust
Estate shall be vested at all times in the Trust as a separate legal entity,
except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or
other trustees, as the case may be.

     SECTION 2.9 Situs of Trust. The Trust shall be located and administered in
the State of Delaware. All bank accounts maintained by the Trust or the Owner
Trustee on behalf of the Trust or for the benefit of the Certificateholders
shall be located in the State of Delaware or the State of New York. The Trust
shall not have any employees in any state other than Delaware; provided,
however, that nothing herein shall restrict or prohibit the Owner Trustee from
having employees within or without the State of Delaware. Payments shall be
received by the Trust only in Delaware or New York, and payments and
distributions shall be made by the Trust only

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from Delaware or New York. The only office of the Trust shall be the Corporate
Trust Office of the Owner Trustee in Delaware.

     SECTION 2.10 Representations and Warranties of the Seller. The Seller
hereby represents and warrants to the Owner Trustee that:

          (a)     The Seller has been duly organized and is validly existing as
a corporation in good standing under the laws of the State of Delaware, with
power and authority to own its properties and to conduct its business as such
properties are presently owned and such business is presently conducted and had
at all relevant times, and now has, power, authority and legal right to acquire
and own the Receivables.

          (b)     The Seller is duly qualified to do business as a foreign
corporation in good standing, and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of property or
the conduct of its business requires such qualifications.

          (c)     The Seller has the power and authority to execute and deliver
this Agreement and to carry out its terms, the Seller has full power and
authority to sell and assign the property to be sold and assigned to and
deposited with the Trust, and the Seller has duly authorized such sale and
assignment to the Trust by all necessary corporate action, and the execution,
delivery and performance of this Agreement have been duly authorized by the
Seller by all necessary corporate action.

          (d)     The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms of this Agreement do not conflict
with, result in any breach of any of the terms and provisions of or constitute
(with or without notice or lapse of time) a default under, the certificate of
incorporation or by-laws of the Seller, or any indenture, agreement or other
instrument to which the Seller is a party or by which it is bound, or result in
the creation or imposition of any Lien upon any of its properties pursuant to
the terms of any such indenture, agreement or other instrument (other than
pursuant to the Basic Documents), or violate any law or, to the Seller's
knowledge, any order, rule or regulation applicable to the Seller of any court
or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Seller or any of its
properties.

          (e)     This Agreement, when duly executed and delivered, shall
constitute a legal, valid and binding obligation of the Seller enforceable in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights in general and by general principles of equity,
regardless of whether such enforceability is considered in a proceeding in
equity or at law.

          (f)     There are no proceedings or, to the Seller's knowledge,
investigations pending or, to the Seller's knowledge, threatened before any
court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Seller or its properties (i)
asserting the invalidity of this Agreement or any Certificates issued pursuant
hereto or, (ii) seeking to prevent the issuance of such Certificates or the
consummation of any of the transactions contemplated by this Agreement or (iii)
seeking any determination or

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ruling that might materially and adversely affect the performance by the Seller
of its obligations under, or the validity or enforceability of, such
Certificates or this Agreement.

                                   ARTICLE III
                                THE CERTIFICATES

     SECTION 3.1 Initial Certificate Ownership. Upon the formation of the Trust
by the contribution by the Seller pursuant to Section 2.5 and until the issuance
of the Certificates, the Seller shall be the sole beneficiary of the Trust.

     SECTION 3.2 Form of the Certificates.

          (a)     The Certificates shall be substantially in the form set forth
in Exhibit A. The Certificates shall be executed on behalf of the Trust by
manual or facsimile signature of a Responsible Officer of the Owner Trustee.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign on
behalf of the Trust, shall be, when authenticated pursuant to Section 3.3,
validly issued and entitled to the benefits of this Agreement, notwithstanding
that such individuals or any of them shall have ceased to be so authorized prior
to the authentication and delivery of such Certificates or did not hold such
offices at the date of authentication and delivery of such Certificates.

          (b)     The Certificates shall be typewritten, printed, lithographed
or engraved or produced by any combination of these methods (with or without
steel engraved borders) all as determined by the officers executing such
Certificates, as evidenced by their execution of such Certificates.

          (c)     The Certificates shall be issued in fully-registered form and
shall be in definitive form only. The terms of the Certificates set forth in
Exhibit A shall form part of this Agreement.

     SECTION 3.3 Execution, Authentication and Delivery. Concurrently with the
sale of the Initial Receivables to the Trust pursuant to the Pooling Agreement,
the Owner Trustee shall cause the Certificates to be executed on behalf of the
Trust, and to be authenticated and delivered to or upon the written order of the
Seller, signed by its chairman of the board, its president or any vice
president, without further corporate action by the Seller, in authorized
denominations. No Certificate shall entitle its holder to any benefit under this
Agreement, or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication substantially in the form set forth
in Exhibit A, executed by the Owner Trustee or by the Person appointed from time
to time as the Owner Trustee's authenticating agent hereunder (the
"Authenticating Agent") by manual signature. The Owner Trustee hereby appoints
JPMorgan Chase Bank as the initial Authenticating Agent. Such authentication
shall constitute conclusive evidence that such Certificate shall have been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication.

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     SECTION 3.4 Registration; Registration of Transfer and Exchange of
Certificates.

          (a)     The Certificate Registrar shall keep or cause to be kept, at
the office or agency maintained pursuant to Section 3.8, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the Owner
Trustee shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as provided herein. The Certificate Registrar shall be
appointed by and may be removed by the Owner Trustee. The Owner Trustee hereby
appoints JPMorgan Chase Bank as the initial Certificate Registrar. Upon any
resignation of a Certificate Registrar, the Owner Trustee shall promptly appoint
a successor or, if it elects not to make such an appointment, assume the duties
of Certificate Registrar.

          (b)     The initial Certificateholders may at any time, without
consent of the Noteholders, sell, transfer, convey or assign in any manner its
rights to and interests in the Certificates (including its right to
distributions from the Reserve Account), provided that: (i) such action will not
result in a reduction or withdrawal of the rating of any class of Notes, (ii)
the Certificateholders provide to the Owner Trustee and the Indenture Trustee an
opinion of independent counsel that such action will not cause the Trust to be
treated as an association (or publicly traded partnership) taxable as a
corporation for federal income tax purposes, (iii) such transferee or assignee
agrees to take positions for tax purposes consistent with the tax positions
agreed to be taken by the Certificateholders and (iv) the conditions set forth
in Section 3.4(g) have been satisfied. In addition, no transfer of a Certificate
shall be registered unless the transferee shall have provided to the Owner
Trustee and the Certificate Registrar an opinion of counsel that in connection
with such transfer no registration of the Certificates is required under the
Securities Act or applicable state law or that such transfer is otherwise being
made in accordance with all applicable federal and state securities laws.

          (c)     Subject to Section 3.4(b), upon surrender for registration of
transfer of any Certificate at the office or agency maintained pursuant to
Section 3.8, the Owner Trustee shall execute on behalf of the Trust,
authenticate and deliver (or shall cause its Authenticating Agent to
authenticate and deliver), in the name of the designated transferee or
transferees, one or more new Certificates in authorized denominations of a like
aggregate amount dated the date of authentication by the Owner Trustee or any
authenticating agent.

          (d)     At the option of a Holder, Certificates may be exchanged for
other Certificates of a like aggregate percentage interest upon surrender of the
Certificates to be exchanged at the Corporate Trust Office or the office or
agency maintained pursuant to Section 3.8. Whenever any Certificates are so
surrendered for exchange, the Owner Trustee shall execute on behalf of the
Trust, authenticate and deliver (or shall cause its Authenticating Agent to
authenticate and deliver) one or more Certificates dated the date of
authentication by the Owner Trustee or any Authenticating Agent. Such
Certificates shall be delivered to the Holder making the exchange.

          (e)     Every Certificate presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Owner Trustee and the Certificate Registrar duly
executed by the Holder or his attorney duly authorized in writing. Each
Certificate surrendered for registration of transfer or exchange shall

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<PAGE>

be canceled and subsequently destroyed or otherwise disposed of by the Owner
Trustee or Certificate Registrar in accordance with its customary practice.

          (f)     No service charge shall be made for any registration of
transfer or exchange of Certificates, but the Owner Trustee or the Certificate
Registrar may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

          (g)     The Certificates may not be acquired by or for the account of
(i) an employee benefit plan (as defined in Section 3(3) of ERISA) that is
subject to the provisions of Title I of ERISA, (ii) a plan described in Section
4975(e)(1) of the Code or (iii) any entity whose underlying assets include plan
assets by reason of a plan's investment in the entity (each, a "Benefit Plan").
By accepting and holding a Certificate, the Holder thereof shall be deemed to
have represented and warranted that it is not a Benefit Plan.

     SECTION 3.5 Mutilated, Destroyed, Lost or Stolen Certificates.

          (a)     If (i) any mutilated Certificate is surrendered to the
Certificate Registrar, or the Certificate Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Certificate, and (ii)
there is delivered to the Certificate Registrar, the Owner Trustee and the
Trust, such security or indemnity as may be required by them to hold each of
them harmless, then, in the absence of notice to the Certificate Registrar, the
Owner Trustee or the Trust that such Certificate has been acquired by a
protected purchaser, the Owner Trustee shall execute on behalf of the Trust and
the Owner Trustee shall authenticate and deliver (or shall cause its
Authenticating Agent to authenticate and deliver), in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a replacement
Certificate in authorized denominations of a like amount; provided, however,
that if any such destroyed, lost or stolen Certificate, but not a mutilated
Certificate, shall have become or within seven days shall be due and payable,
then instead of issuing a replacement Certificate the Owner Trustee on behalf of
the Trust may pay such destroyed, lost or stolen Certificate when so due or
payable.

          (b)     If, after the delivery of a replacement Certificate or
distribution in respect of a destroyed, lost or stolen Certificate pursuant to
subsection 3.5(a), a protected purchaser of the original Certificate in lieu of
which such replacement Certificate was issued presents for payment such original
Certificate, the Owner Trustee on behalf of the Trust shall be entitled to
recover such replacement Certificate (or such distribution) from the Person to
whom it was delivered or any Person taking such replacement Certificate from
such Person to whom such replacement Certificate was delivered or any assignee
of such Person, except a protected purchaser, and shall be entitled to recover
upon the security or indemnity provided therefor to the extent of any loss,
damage, cost or expense incurred by the Trust or the Owner Trustee in connection
therewith.

          (c)     In connection with the issuance of any replacement Certificate
under this Section 3.5, the Owner Trustee on behalf of the Trust may require the
payment by the Holder of such Certificate of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto and any
other reasonable expenses (including the fees and expenses of the Trust, the
Owner Trustee and the Certificate Registrar) connected therewith.

                                      - 7 -

<PAGE>

          (d)     Any duplicate Certificate issued pursuant to this Section 3.5
in replacement of any mutilated, destroyed, lost or stolen Certificate shall
constitute an original additional contractual obligation of the Trust, whether
or not the mutilated, destroyed, lost or stolen Certificate shall be found at
any time or be enforced by anyone, and shall be entitled to all the benefits of
this Agreement equally and proportionately with any and all other Certificates
duly issued hereunder.

          (e)     The provisions of this Section 3.5 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Certificates.

     SECTION 3.6 Persons Deemed Certificateholders. Prior to due presentation of
a Certificate for registration of transfer, the Owner Trustee or the Certificate
Registrar may treat the Person in whose name any Certificate shall be registered
in the Certificate Register as the Certificateholder of such Certificate for the
purpose of receiving distributions pursuant to Article V and for all other
purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar
shall be bound by any notice to the contrary.

     SECTION 3.7 Access to List of Certificateholders' Names and Addresses. The
Owner Trustee shall furnish or cause to be furnished to the Servicer and the
Seller, within 15 days after receipt by the Owner Trustee of a request therefor
from the Servicer or the Seller in writing, a list, in such form as the Servicer
or the Seller may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. Each Holder, by receiving
and holding a Certificate, shall be deemed to have agreed not to hold any of the
Servicer, the Seller, the Trust or the Owner Trustee accountable by reason of
the disclosure of its name and address, regardless of the source from which such
information was derived.

     SECTION 3.8 Maintenance of Corporate Trust Office. The Owner Trustee shall
maintain in the Borough of Manhattan, the City of New York, an office or offices
or agency or agencies where Certificates may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Trust in
respect of the Certificates and the Basic Documents may be served. The Owner
Trustee initially designates the offices of JPMorgan Chase Bank, 4 New York
Plaza, New York, New York 10004, as its principal office for such purposes. The
Owner Trustee shall give prompt written notice to the Seller and to the
Certificateholders of any change in the location of the Certificate Register or
any such office or agency.

     SECTION 3.9 Appointment of Paying Agent. The Paying Agent shall make
distributions to Certificateholders from the Certificate Distribution Account
pursuant to Section 5.2 and shall report the amounts of such distributions to
the Owner Trustee. Any Paying Agent shall have the revocable power to withdraw
funds from the Certificate Distribution Account for the purpose of making the
distributions referred to above. The Owner Trustee may appoint and may revoke
such power and remove the Paying Agent if the Owner Trustee determines in its
sole discretion that the Paying Agent shall have failed to perform its
obligations under this Agreement in any material respect. The Owner Trustee
hereby appoints JPMorgan Chase Bank as the initial Paying Agent and appoints as
co-paying agent any co-paying agent chosen by the Paying Agent and acceptable to
the Owner Trustee. The Paying Agent shall be permitted to resign as Paying

                                      - 8 -

<PAGE>

Agent upon 30 days' written notice to the Owner Trustee. If the Paying Agent
shall resign or be removed, the Owner Trustee shall appoint a successor to act
as Paying Agent (which shall be a bank or trust company). The Owner Trustee
shall cause such successor Paying Agent or any additional Paying Agent appointed
by the Owner Trustee to execute and deliver to the Owner Trustee an instrument
in which such successor Paying Agent or additional Paying Agent shall agree with
the Owner Trustee that as Paying Agent, such successor Paying Agent or
additional Paying Agent shall hold all sums, if any, held by it for distribution
to the Certificateholders in trust for the benefit of the Certificateholders
entitled thereto until such sums shall be paid to such Certificateholders. The
Paying Agent shall return all unclaimed funds to the Trust and upon removal of a
Paying Agent such Paying Agent shall also return all funds in its possession to
the Trust. The provisions of Sections 6.3, 6.6, 6.7, 6.8 and 6.9 shall apply,
mutatis mutandis, to the Owner Trustee also in its role as Paying Agent, for so
long as the Owner Trustee shall act as Paying Agent and, to the extent
applicable, to any other paying agent appointed hereunder. Any reference in this
Agreement to the Paying Agent shall include any co-paying agent unless the
context requires otherwise.

     SECTION 3.10 Seller as Certificateholder. The Seller in its individual or
any other capacity may become the owner or pledgee of Certificates and may
otherwise deal with the Owner Trustee or its Affiliates as if it were not the
Seller.

                                   ARTICLE IV
                            ACTIONS BY OWNER TRUSTEE

     SECTION 4.1 Prior Notice to Certificateholders with Respect to Certain
Matters. The Owner Trustee shall not take action with respect to the following
matters, unless (i) the Owner Trustee shall have notified the Certificateholders
in writing of the proposed action at least 30 days before the taking of such
action, and (ii) the Certificateholders shall not have notified the Owner
Trustee in writing prior to the 30th day after such notice is given that such
Certificateholders have withheld consent or provided alternative direction:

          (a)     the initiation of any claim or lawsuit by the Trust (other
than an action to collect on a Receivable or an action by the Indenture Trustee
pursuant to the Indenture) and the compromise of any action, claim or lawsuit
brought by or against the Trust (other than an action to collect on a Receivable
or an action by the Indenture Trustee pursuant to the Indenture);

          (b)     the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;

          (c)     the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interests of the Certificateholders;

          (d)     the amendment, change or modification of the Administration
Agreement, except to cure any ambiguity or to amend or supplement any provision
in a manner that would not materially adversely affect the interests of the
Certificateholders;

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          (e)     the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a
successor Certificate Registrar, or the consent to the assignment by the Note
Registrar, Paying Agent or Indenture Trustee or Certificate Registrar of its
obligations under the Indenture or this Agreement, as applicable;

          (f)     the amendment of the Pooling Agreement or the Servicing
Agreement in circumstances where the consent of any Noteholder is required; or

          (g)     the election by the Trust to file an amendment to the
Certificate of Trust, a conformed copy of which is attached hereto as Exhibit B,
except as permitted or required by the terms of any Basic Document.

     SECTION 4.2 Action by Certificateholders with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the written direction of
the Certificateholders, to (a) remove the Administrator under the Administration
Agreement pursuant to Section 10 thereof, (b) appoint a successor Administrator
pursuant to Section 10 of the Administration Agreement, (c) remove the Servicer
under the Servicing Agreement pursuant to Section 7.02 thereof or (d) except as
expressly provided in the Basic Documents, sell the Receivables or any interest
therein after the termination of the Indenture. The Owner Trustee shall take the
actions referred to in the preceding sentence only upon written instructions
signed by the Certificateholders.

     SECTION 4.3 Action by Certificateholders with Respect to Bankruptcy.
Neither the Trust nor the Owner Trustee shall have the power to commence a
voluntary proceeding in bankruptcy relating to the Trust without the unanimous
prior approval of all Holders of Certificates (including the unanimous approval
of the board of directors of the Seller) unless the Owner Trustee reasonably
believes that the Trust is insolvent.

     SECTION 4.4 Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Agreement or any of the Basic
Documents or would be contrary to Section 2.3, nor shall the Owner Trustee be
obligated to follow any such direction, if given.

     SECTION 4.5 Majority Control. Except as expressly provided herein, any
action that may be taken or consent that may be given or withheld by the
Certificateholders under this Agreement shall be effective if such action is
taken or such consent is given or withheld by the Holders of a majority of the
ownership interest in the Trust outstanding as of the close of the preceding
Distribution Date. Except as expressly provided herein, any written notice,
instruction, direction or other document of the Certificateholders delivered
pursuant to this Agreement shall be effective if signed by Holders of
Certificates evidencing not less than a majority of the ownership interest in
the Trust at the time of the delivery of such notice.

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                                    ARTICLE V
                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     SECTION 5.1 Establishment of Certificate Distribution Account.

          (a)     The Seller shall cause the Servicer, for the benefit of the
Certificateholders, to establish and maintain at JPMorgan Chase Bank in the name
of the Trust an Eligible Deposit Account known as the Navistar Financial 2003-A
Owner Trust Certificate Distribution Account (the "Certificate Distribution
Account"), bearing an additional designation clearly indicating that the funds
deposited therein are held for the benefit of the Certificateholders.

          (b)     The Trust, for the benefit of the Certificateholders, shall
possess all right, title and interest in and to all funds on deposit from time
to time in the Certificate Distribution Account and in all proceeds thereof.
Except as otherwise provided herein or in the Pooling Agreement or the Servicing
Agreement, the Certificate Distribution Account shall be under the sole dominion
and control of the Owner Trustee for the benefit of the Certificateholders. If,
at any time, the Certificate Distribution Account ceases to be an Eligible
Deposit Account, the Seller shall cause the Servicer within 10 Business Days (or
such longer period, not to exceed 30 calendar days, as to which each Rating
Agency may consent) to establish a new Certificate Distribution Account as an
Eligible Deposit Account and shall cause the Owner Trustee to transfer any cash
and/or any investments in the old Certificate Distribution Account to such new
Certificate Distribution Account.

     SECTION 5.2 Application of Trust Funds.

          (a)     On each Distribution Date, the Owner Trustee shall (based on
the information contained in the Servicer's Certificate delivered on the related
Determination Date) distribute to the Certificateholders, on a pro rata basis,
amounts on deposit in the Certificate Distribution Account.

          (b)     On each Distribution Date, the Owner Trustee shall send (or
shall cause to be sent) to each Certificateholder the statement described in
Section 2.17(a) of the Servicing Agreement.

          (c)     If any withholding tax is imposed on distributions of the
Owner Trust Estate (or allocations of income) to a Certificateholder, such tax
shall reduce the amount otherwise distributable to the Certificateholder in
accordance with this Section 5.2. The Owner Trustee is hereby authorized and
directed to retain from amounts otherwise distributable to the
Certificateholders sufficient funds for the payment of any withholding tax that
is legally owed by the Trust in respect of any distribution (but such
authorization shall not prevent the Owner Trustee from contesting any such tax
in appropriate proceedings and withholding payment of such tax, if permitted by
law, pending the outcome of such proceedings). The amount of any withholding tax
imposed with respect to a Certificateholder shall be treated as cash distributed
to such Certificateholder at the time it is withheld by the Trust and remitted
to the appropriate taxing authority. If there is a possibility that withholding
tax is payable with respect to a distribution (such as a distribution to a
non-U.S. Certificateholder), the Owner Trustee may in its

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sole discretion withhold such amounts in accordance with this subsection 5.2(c).
If a Certificateholder wishes to apply for a refund of any such withholding tax,
the Owner Trustee shall reasonably cooperate with such Certificateholder in
making such claim so long as such Certificateholder agrees to reimburse the
Trust and the Owner Trustee for any out-of-pocket expenses incurred.

          (d)     If the Indenture Trustee holds escheated funds for payment to
the Trust pursuant to Section 3.3(e) of the Indenture, the Owner Trustee shall,
upon notice from the Indenture Trustee that such funds exist, submit on behalf
of the Trust an Issuer Order to the Indenture Trustee pursuant to Section 3.3(e)
of the Indenture instructing the Indenture Trustee to pay such funds pro rata to
or at the order of the Certificateholders.

     SECTION 5.3 Method of Payment. Subject to Section 7.1(c), distributions
required to be made to Certificateholders on any Distribution Date shall be made
to each Certificateholder of record on the related Record Date (i) by wire
transfer, in immediately available funds, to the account of such Holder at a
bank or other entity having appropriate facilities therefor or, where possible,
by intra-bank book entry credit, if such Certificateholder shall have provided
to the Certificate Registrar appropriate written instructions at least five
Business Days prior to such Record Date and the distribution required to be made
to such Certificateholders exceeds $100,000 or (ii) by check mailed to such
Certificateholder at the address of such Holder appearing in the Certificate
Register.

     SECTION 5.4 Accounting and Reports to the Certificateholders, the Internal
Revenue Service and Others. The Trust shall maintain (or cause to be maintained)
the books of the Trust on the basis of a fiscal year ending October 31 on the
accrual method of accounting, deliver to each Certificateholder, as may be
required by the Code and applicable Treasury Regulations or otherwise, such
information as may be required to enable each Certificateholder to prepare its
federal income tax returns, file such tax returns relating to the Trust and make
such elections as may from time to time be required or appropriate under any
applicable state or federal statute or rule or regulation thereunder so as to
maintain the Trust's characterization as a division or branch of the Seller for
federal income tax purposes, cause such tax returns to be signed in the manner
required by law and collect or cause to be collected any withholding tax as
described in and in accordance with subsection 5.2(c) with respect to income or
distributions to Certificateholders.

     SECTION 5.5 Signature on Returns. The Owner Trustee shall sign on behalf of
the Trust any and all tax returns of the Trust, unless applicable law requires a
Certificateholder to sign such documents, in which case such documents shall be
signed by the Seller.

                                   ARTICLE VI
                                THE OWNER TRUSTEE

     SECTION 6.1 Duties of Owner Trustee.

          (a)     The Owner Trustee undertakes to perform such duties, and only
such duties, as are specifically set forth in this Agreement, the Pooling
Agreement, the Servicing Agreement and the other Basic Documents, including the
administration of the Trust in the interest of the Certificateholders, subject
to the Basic Documents and in accordance with the

                                     - 12 -

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provisions of this Agreement, the Pooling Agreement and the Servicing Agreement.
No implied covenants or obligations shall be read into this Agreement, the
Pooling Agreement, the Servicing Agreement or any other Basic Document against
the Owner Trustee.

          (b)     Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent the Administrator has agreed in the
Administration Agreement to perform any act or to discharge any duty of the
Owner Trustee hereunder or under any Basic Document, and the Owner Trustee shall
not be liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

          (c)     In the absence of bad faith on its part, the Owner Trustee may
conclusively rely upon certificates or opinions furnished to the Owner Trustee
and conforming to the requirements of this Agreement in determining the truth of
the statements and the correctness of the opinions contained therein; provided,
however, that the Owner Trustee shall have examined such certificates or
opinions so as to determine compliance of the same with the requirements of this
Agreement.

          (d)     The Owner Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                      (i)    this subsection 6.1(d) shall not limit the effect
                  of subsection 6.1(a) or (b);

                      (ii)   the Owner Trustee shall not be liable for any
                  error of judgment made in good faith by a Responsible
                  Officer unless it is proved that the Owner Trustee was
                  negligent in ascertaining the pertinent facts; and

                      (iii)  the Owner Trustee shall not be liable with respect
                  to any action it takes or omits to take in good faith in
                  accordance with a direction received by it pursuant to
                  Section 4.1, 4.2 or 6.4.

          (e)     Subject to Sections 5.1 and 5.2, monies received by the Owner
Trustee hereunder need not be segregated in any manner except to the extent
required by law, the Pooling Agreement or the Servicing Agreement and may be
deposited under such general conditions as may be prescribed by law, and the
Owner Trustee shall not be liable for any interest thereon.

          (f)     The Owner Trustee shall not take any action that (i) is
inconsistent with the purposes of the Trust set forth in Section 2.3 or (ii)
would, to the actual knowledge of a Responsible Officer of the Owner Trustee,
result in the Trust becoming taxable as a corporation for federal income tax
purposes.

          (g)     The Certificateholders shall not direct the Owner Trustee to
take action that would violate the provisions of this Section 6.1.

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     SECTION 6.2 Authority of Owner Trustee. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents and each certificate or
other document attached as an exhibit to or contemplated by the Basic Documents
to which the Trust is to be a party in such form as the Seller shall approve as
evidenced conclusively by the Owner Trustee's execution thereof. In addition to
the foregoing, the Owner Trustee is authorized, but shall not be obligated, to
take all actions required of the Trust pursuant to the Basic Documents. The
Owner Trustee is further authorized from time to time to take such action as the
Administrator recommends with respect to the Basic Documents.

     SECTION 6.3 Acceptance of Trusts and Duties. Except as otherwise provided
in this Article VI, in accepting the trusts hereby created, the Person executing
this Agreement as Owner Trustee acts solely as Owner Trustee hereunder and not
in its individual capacity and all Persons having any claim against the Owner
Trustee by reason of the transactions contemplated by this Agreement or any
Basic Document shall look only to the Owner Trust Estate for payment or
satisfaction thereof. The Owner Trustee accepts the trusts hereby created and
agrees to perform its duties hereunder with respect to such trusts but only upon
the terms of this Agreement. The Owner Trustee also agrees to disburse all
monies actually received by it constituting part of the Owner Trust Estate upon
the terms of this Agreement. The Owner Trustee shall not be liable or
accountable hereunder or under any Basic Document under any circumstances,
except for its own negligent action, its own negligent failure to act or its own
willful misconduct or in the case of the inaccuracy of any representation or
warranty contained in Section 6.6 and expressly made by the Owner Trustee. In
particular, but not by way of limitation (and subject to the exceptions set
forth in the preceding sentence):

          (a)     the Owner Trustee shall at no time have any responsibility or
liability for or with respect to the legality, validity and enforceability of
any Receivable or the perfection and priority of any security interest created
by any Receivable in any Financed Vehicle or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Owner
Trust Estate or its ability to generate the distributions and payments to be
made to Certificateholders under this Agreement or to Noteholders under the
Indenture, including, without limitation: the existence, condition and ownership
of any Financed Vehicle; the existence and enforceability of any insurance
thereon; the existence and contents of any Receivable on any computer or other
record thereof; the validity of the assignment of any Receivable to the Trust or
of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the Seller or
the Servicer with any warranty or representation made under any Basic Document
or in any related document or the accuracy of any such warranty or
representation or any action of the Administrator, the Owner Trustee or the
Servicer or any subservicer taken in the name of the Owner Trustee;

          (b)     the Owner Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in accordance with the instructions of
the Administrator or any Certificateholder;

          (c)     no provision of this Agreement or any Basic Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights or powers hereunder
or under any Basic Document, if the Owner

                                     - 14 -

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Trustee shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured
or provided to it;

          (d)     under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes or any amounts payable with respect
to the Certificates;

          (e)     the Owner Trustee shall not be responsible for or in respect
of, and makes no representation as to, the validity or sufficiency of any
provision of this Agreement or for the due execution hereof by the Seller or for
the form, character, genuineness, sufficiency, value or validity of any of the
Owner Trust Estate or for or in respect of the validity or sufficiency of the
Basic Documents, the Notes, the Certificates (other than the certificate of
authentication on the Certificates) or of any Receivables or any related
documents, and the Owner Trustee shall in no event assume or incur any
liability, duty or obligation to any Noteholder or to any Certificateholder,
other than as expressly provided for herein and in the Basic Documents;

          (f)     the Owner Trustee shall not be liable for the default or
misconduct of the Administrator, the Indenture Trustee, the Seller or the
Servicer under any of the Basic Documents or otherwise and the Owner Trustee
shall not have any obligation or liability to perform the obligations of the
Trust under this Agreement or the Basic Documents that are required to be
performed by the Administrator under the Administration Agreement, the Indenture
Trustee under the Indenture, the Servicer under the Servicing Agreement or NFC
under the Purchase Agreement; and

          (g)     the Owner Trustee shall not be under any obligation to
exercise any of the rights or powers vested in it by this Agreement, or to
institute, conduct or defend any litigation under this Agreement or otherwise or
in relation to this Agreement or any Basic Document, at the request, order or
direction of any of the Certificateholders, unless such Certificateholders have
offered to the Owner Trustee security or indemnity satisfactory to it against
the costs, expenses and liabilities that may be incurred by the Owner Trustee
therein or thereby. The right of the Owner Trustee to perform any discretionary
act enumerated in this Agreement or in any Basic Document shall not be construed
as a duty, and the Owner Trustee shall not be answerable for other than its
negligence or willful misconduct in the performance of any such act.

     SECTION 6.4 Action upon Instruction by Certificateholders.

          (a)     Subject to Section 4.4 and Section 6.1(g), the
Certificateholders may by written instruction direct the Owner Trustee in the
management of the Trust. Such direction may be exercised at any time by written
instruction of the Certificateholders pursuant to Section 4.5.

          (b)     Notwithstanding the foregoing, the Owner Trustee shall not be
required to take any action hereunder or under any Basic Document if the Owner
Trustee shall have reasonably determined, or shall have been advised by counsel,
that such action is likely to result in liability on the part of the Owner
Trustee or is contrary to the terms hereof or of any Basic Document or is
otherwise contrary to law.

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          (c)     Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Basic Document, or is unsure as to the application, intent,
interpretation or meaning of any provision of this Agreement or the Basic
Documents, the Owner Trustee shall promptly give notice (in such form as shall
be appropriate under the circumstances) to the Certificateholders requesting
instruction as to the course of action to be adopted, and, to the extent the
Owner Trustee acts in good faith in accordance with any such instruction
received, the Owner Trustee shall not be liable on account of such action to any
Person. If the Owner Trustee shall not have received appropriate instructions
within ten days of such notice (or within such shorter period of time as
reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from
taking such action which is consistent, in its view, with this Agreement or the
Basic Documents, and as it shall deem to be in the best interests of the
Certificateholders, and the Owner Trustee shall have no liability to any Person
for any such action or inaction.

     SECTION 6.5 Furnishing of Documents. The Owner Trustee shall furnish to the
Certificateholders, promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Trust or the
Owner Trustee under the Basic Documents.

     SECTION 6.6 Representations and Warranties of Owner Trustee. The Owner
Trustee hereby represents and warrants to the Seller, for the benefit of the
Certificateholders, that:

          (a)     It is a national bank duly organized, validly existing and in
good standing under the laws of the United States of America. The eligibility
requirements set forth in Section 6.13 (a) - (c) are satisfied with respect to
it.

          (b)     It has full power, authority and legal right to execute,
deliver and perform this Agreement, and has taken all necessary action to
authorize the execution, delivery and performance by it of this Agreement.

          (c)     The execution, delivery and performance by it of this
Agreement (i) shall not violate any provision of any law or regulation governing
the banking and trust powers of the Owner Trustee or any order, writ, judgment
or decree of any court, arbitrator or governmental authority applicable to the
Owner Trustee or any of its assets, (ii) shall not violate any provision of the
charter or by-laws of the Owner Trustee, or (iii) shall not violate any
provision of, or constitute, with or without notice or lapse of time, a default
under, or result in the creation or imposition of any lien on any properties
included in the Owner Trust Estate pursuant to the provisions of any mortgage,
indenture, contract, agreement or other undertaking to which it is a party,
which violation, default or lien could reasonably be expected to have a
materially adverse effect on the Owner Trustee's performance or ability to
perform its duties as Owner Trustee under this Agreement or on the transactions
contemplated in this Agreement.

          (d)     The execution, delivery and performance by the Owner Trustee
of this Agreement shall not require the authorization, consent or approval of,
the giving of notice to, the filing or registration with, or the taking of any
other action in respect of, any governmental authority or agency regulating the
corporate trust activities of the Owner Trustee.

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          (e)     This Agreement has been duly executed and delivered by the
Owner Trustee and constitutes the legal, valid and binding agreement of the
Owner Trustee, enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors' rights in general and
by general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

     SECTION 6.7 Reliance; Advice of Counsel.

          (a)     The Owner Trustee shall incur no liability to anyone in acting
upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties and
need not investigate any fact or matter in any such document. The Owner Trustee
may accept a certified copy of a resolution of the board of directors or other
governing body of any corporate party as conclusive evidence that such
resolution has been duly adopted by such body and that the same is in full force
and effect. As to any fact or matter the method of the determination of which is
not specifically prescribed herein, the Owner Trustee may for all purposes
hereof rely on a certificate, signed by the president or any vice president or
by the treasurer or other authorized officers of the relevant party, as to such
fact or matter, and such certificate shall constitute full protection to the
Owner Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon.

          (b)     In the exercise or administration of the trusts hereunder and
in the performance of its duties and obligations under this Agreement or the
Basic Documents, the Owner Trustee: may act directly or through its agents,
attorneys, custodians or nominees pursuant to agreements entered into with any
of them, and the Owner Trustee shall not be liable for the conduct or misconduct
of such agents, attorneys, custodians or nominees if such agents, attorneys,
custodians or nominees shall have been selected by the Owner Trustee with
reasonable care; and may consult with counsel, accountants and other skilled
professionals to be selected with reasonable care and employed by it. The Owner
Trustee shall not be liable for anything done, suffered or omitted in good faith
by it in accordance with the opinion or advice of any such counsel, accountants
or other such Persons and not contrary to this Agreement or any Basic Document.

     SECTION 6.8 Owner Trustee May Own Certificates and Notes. The Owner Trustee
in its individual or any other capacity may become the owner or pledgee of
Certificates or Notes and may deal with the Seller, the Administrator, the
Indenture Trustee and the Servicer in transactions in the same manner as it
would have if it were not the Owner Trustee.

     SECTION 6.9 Compensation and Indemnity. The Owner Trustee shall receive as
compensation from the Seller for its services hereunder such fees as have been
separately agreed upon before the date hereof between the Seller and the Owner
Trustee, and the Owner Trustee shall be entitled to be reimbursed by the
Servicer for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, custodians, nominees,
representatives, experts and counsel as it may employ in connection with the
exercise and performance of its rights and its duties hereunder. The Servicer
shall indemnify the Owner Trustee and its successors, assigns, agents and
servants in accordance with the provisions of

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Section 6.05 of the Servicing Agreement. The compensation and indemnities
described in this Section 6.9 shall survive the resignation or termination of
the Owner Trustee or the termination of this Agreement. Any amounts paid to the
Owner Trustee pursuant to this Article VI shall not be deemed to be a part of
the Owner Trust Estate immediately after such payment.

     SECTION 6.10 Replacement of Owner Trustee.

          (a)     The Owner Trustee may give notice of its intent to resign and
be discharged from the trusts hereby created by written notice thereof to the
Administrator; provided that no such resignation shall become effective, and the
Owner Trustee shall not resign, prior to the time set forth in Section 6.10(c).
The Administrator may appoint a successor Owner Trustee by delivering a written
instrument, in duplicate, to the resigning Owner Trustee and the successor Owner
Trustee. If no successor Owner Trustee shall have been appointed and have
accepted appointment within 30 days after the giving of such notice, the
resigning Owner Trustee giving such notice may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee. The Administrator
shall remove the Owner Trustee if:

                      (i)    the Owner Trustee shall cease to be eligible in
                  accordance with the provisions of Section 6.13 and shall
                  fail to resign after written request therefor by the
                  Administrator;

                      (ii)   the Owner Trustee shall be adjudged bankrupt or
                  insolvent;

                      (iii)  a receiver or other public officer shall be
                  appointed or take charge or control of the Owner Trustee or of
                  its property or affairs for the purpose of rehabilitation,
                  conservation or liquidation; or

                      (iv)   the Owner Trustee shall otherwise be incapable of
                  acting.

          (b)     If the Owner Trustee gives notice of its intent to resign or
is removed or if a vacancy exists in the office of Owner Trustee for any reason,
the Administrator shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate (one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed and one copy to the successor Owner Trustee)
and shall pay all fees owed to the outgoing Owner Trustee.

          (c)     Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section 6.10 shall not become effective and no such resignation shall be
deemed to have occurred until a written acceptance of appointment is delivered
by the successor Owner Trustee to the outgoing Owner Trustee and the
Administrator and all fees and expenses due to the outgoing Owner Trustee are
paid. Any successor Owner Trustee appointed pursuant to this Section 6.10 shall
be eligible to act in such capacity in accordance with Section 6.13 and,
following compliance with the preceding sentence, shall become fully vested with
all the rights, powers, duties and obligations of its predecessor under this
Agreement, with like effect as if originally named as Owner Trustee. The
Administrator shall provide notice of such resignation or removal of the Owner
Trustee to each of the Rating Agencies.

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          (d)     The predecessor Owner Trustee shall upon payment of its fees
and expenses deliver to the successor Owner Trustee all documents and statements
and monies held by it under this Agreement. The Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such
other things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.

          (e)     Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section 6.10, the Administrator shall mail notice of the
successor of such Owner Trustee to all Certificateholders, the Indenture
Trustee, the Noteholders and the Rating Agencies. The successor Owner Trustee
shall file an appropriate amendment to the Certificate of Trust.

     SECTION 6.11 Merger or Consolidation of Owner Trustee. Any Person into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided
such Person shall be eligible pursuant to Section 6.13, and without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto; provided, however, that the Owner Trustee shall mail notice
of such merger or consolidation to the Rating Agencies.

     SECTION 6.12 Appointment of Co-Trustee or Separate Trustee.

          (a)     Notwithstanding any other provisions of this Agreement, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Owner Trust Estate or any Financed Vehicle may at the time
be located, the Administrator and the Owner Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Owner Trustee to act as co-trustee, jointly with the
Owner Trustee, or as separate trustee or trustees, of all or any part of the
Owner Trust Estate, and to vest in such Person, in such capacity, such title to
the Owner Trust Estate, or any part thereof, and, subject to the other
provisions of this Section 6.12, such powers, duties, obligations, rights and
trusts as the Administrator and the Owner Trustee may consider necessary or
desirable. If the Administrator shall not have joined in such appointment within
15 days after the receipt by it of a request to do so, the Owner Trustee alone
shall have the power to make such appointment. No co-trustee or separate trustee
under this Agreement shall be required to meet the terms of eligibility as a
successor trustee pursuant to Section 6.13 and no notice of the appointment of
any co-trustee or separate trustee shall be required pursuant to Section 6.10.

          (b)     Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                      (i)    all rights, powers, duties and obligations
                  conferred or imposed upon the Owner Trustee shall be
                  conferred upon and exercised or performed by the Owner
                  Trustee and such separate trustee or co-trustee jointly (it
                  being understood that such separate trustee or co-trustee is
                  not authorized to act separately without the Owner Trustee
                  joining in such act), except to the extent that under any
                  law of any jurisdiction in which

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<PAGE>

                  any particular act or acts are to be performed, the Owner
                  Trustee shall be incompetent or unqualified to perform such
                  act or acts, in which event such rights, powers, duties and
                  obligations (including the holding of title to the Owner
                  Trust Estate or any portion thereof in any such
                  jurisdiction) shall be exercised and performed singly by
                  such separate trustee or co-trustee, but solely at the
                  direction of the Owner Trustee;

                      (ii)   no trustee under this Agreement shall be personally
                  liable by reason of any act or omission of any other trustee
                  under this Agreement (unless such other trustee acts or
                  fails to act at the direction of such first trustee); and

                      (iii)  the Administrator and the Owner Trustee acting
                  jointly may at any time accept the resignation of or remove
                  any separate trustee or co-trustee.

          (c)     Any notice, request or other writing given to the Owner
Trustee shall be deemed to have been given to each of the then separate trustees
and co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Owner Trustee. Each such instrument shall be filed with the Owner
Trustee and a copy thereof given to the Administrator.

          (d)     Any separate trustee or co-trustee may at any time appoint the
Owner Trustee as its agent or attorney-in-fact with full power and authority, to
the extent not prohibited by law, to do any lawful act under or in respect of
this Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Owner Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

     SECTION 6.13 Eligibility Requirements for Owner Trustee. The Owner Trustee
shall at all times: (a) be a corporation, a national banking association or a
bank satisfying the provisions of Section 3807(a) of the Statutory Trust
Statute; (b) be authorized to exercise corporate trust powers; (c) have a
combined capital and surplus of at least $50,000,000 and be subject to
supervision or examination by federal or state authorities; and (d) have a
long-term unsecured debt rating of at least Baa3 by Moody's or be otherwise
satisfactory to Moody's. If such Person or bank shall publish reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purpose of this
Section 6.13, the combined capital and surplus of such Person or bank shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Owner Trustee shall cease
to be eligible in accordance with the provisions of this Section 6.13,

                                     - 20 -

<PAGE>

the Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 6.10.

                                   ARTICLE VII
                         TERMINATION OF TRUST AGREEMENT

     SECTION 7.1 Termination of Trust Agreement.

          (a)     The Trust shall dissolve and wind up in accordance with
Section 3808 of the Statutory Trust Statute on or immediately preceding the
final distribution by the Owner Trustee of all monies or other property or
proceeds of the Owner Trust Estate in accordance with the terms of the
Indenture, the Pooling Agreement (including the exercise by the Servicer of its
option to purchase the Receivables pursuant to Section 4.01 of the Pooling
Agreement), the Servicing Agreement and Article V. The bankruptcy, liquidation,
dissolution, death or incapacity of any Certificateholder shall not (x) operate
to terminate this Agreement or the Trust, nor (y) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the Trust or the Owner Trust Estate nor (z) otherwise affect the
rights, obligations and liabilities of the parties hereto.

          (b)     This Agreement shall be irrevocable. Except as provided in
Section 7.1(a) and in this Section 7.1(b), neither the Seller nor any
Certificateholder shall be entitled to revoke or terminate the Trust or this
Agreement. Each of the Seller, the Trust and the Owner Trustee acknowledges that
the Indenture Trustee, on behalf of the Noteholders, is a third-party
beneficiary of this Agreement. For so long as the Notes are outstanding, neither
the Trust nor this Agreement shall be revoked without the consent of the
Indenture Trustee. Each of the Seller, the Trust and the Owner Trustee
acknowledges that the Indenture Trustee, as an agent of the Noteholders,
maintains a legitimate interest in ensuring that the Trust is not revoked prior
to the fulfillment of the Trust objectives. In no event may this Agreement be
amended without the consent of the Indenture Trustee if the effect of such
amendment is the revocation or termination of this Trust other than in
accordance with this Section 7.1.

          (c)     Notice of any dissolution of the Trust specifying the
Distribution Date upon which the Certificateholders shall surrender their
Certificates to the Owner Trustee for payment of the final distribution and
cancellation, shall be given by the Owner Trustee by letter to
Certificateholders mailed within five Business Days of receipt of notice of
dissolution from the Servicer given pursuant to subsection 8.13(b) of the
Indenture, stating: (i) the Distribution Date upon or with respect to which the
final distribution on the Certificates shall be made upon presentation and
surrender of the Certificates at the office of the Owner Trustee; (ii) the
amount of any such final distribution; and (iii) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office of the
Owner Trustee therein specified. The Owner Trustee shall give such notice to the
Certificate Registrar (if other than the Owner Trustee) and the Owner Trustee at
the time such notice is given to Certificateholders. Upon presentation and
surrender of the Certificates, the Owner Trustee shall cause to be distributed
to Certificateholders amounts distributable on such Distribution Date pursuant
to Section 5.2.

                                     - 21 -

<PAGE>

          (d)     If all of the Certificateholders shall not surrender their
Certificates for cancellation within six months after the date specified in the
written notice specified in Section 7.1(c), the Owner Trustee shall give a
second written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Certificates shall
not have been surrendered for cancellation, the Owner Trustee may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement. Subject to applicable laws with respect to
escheat of funds, any funds remaining in the Owner Trust Estate after exhaustion
of such remedies in the preceding sentence shall be deemed property of the
Seller and distributed by the Owner Trustee to the Seller.

          (e)     Within sixty days of the later of (i) the cancellation of all
of the Certificates pursuant to Section 7.1(c) or Section 7.1(d), or (ii)
payment to the Seller of funds remaining in the Owner Trust Estate pursuant to
Section 7.1(d), the Owner Trustee shall provide each of the Rating Agencies with
written notice stating that all Certificates have been so canceled or such funds
have been so paid to the Seller.

          (f)     Upon completion of the winding up of the trust, the Owner
Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Statutory Trust Statute and, upon such filing,
the Trust shall terminate.

                                  ARTICLE VIII
                                   AMENDMENTS

     SECTION 8.1 Amendments Without Consent of Certificateholders or
Noteholders. This Agreement may be amended by the Seller and the Owner Trustee
without the consent of any of the Securityholders (but with prior notice to each
of the Rating Agencies) to (i) cure any ambiguity, (ii) correct or supplement
any provision in this Agreement that may be defective or inconsistent with any
other provision in this Agreement or any other Basic Document, (iii) add or
supplement any credit enhancement for the benefit of the Securityholders
(provided that if any such addition shall affect any class of Securityholders
differently than any other class of Securityholders, then such addition shall
not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any class of the Securityholders), (iv) add to the
covenants, restrictions or obligations of the Seller or the Owner Trustee for
the benefit of the Securityholders, (v) evidence and provide for the acceptance
of the appointment of a successor trustee with respect to the Owner Trust Estate
and add to or change any provisions as shall be necessary to facilitate the
administration of the trusts hereunder by more than one trustee pursuant to
Article VI, or (vi) add, change or eliminate any other provision of this
Agreement in any manner that shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of the Securityholders.

     SECTION 8.2 Amendments With Consent of Certificateholders and Noteholders.
This Agreement may be amended from time to time by the Seller and the Owner
Trustee with the consent of Noteholders whose Notes evidence not less than a
majority of the Outstanding

                                     - 22 -

<PAGE>

Amount of the Controlling Class as of the close of business on the preceding
Distribution Date and the consent of the Holders of Certificates evidencing not
less than a majority of the ownership interests in the Owner Trust Estate as of
the close of business on the preceding Distribution Date (which consent, whether
given pursuant to this Section 8.2 or pursuant to any other provision of this
Agreement, shall be conclusive and binding on such Person and on all future
holders of such Notes or Certificates and of any Notes or Certificates issued
upon the transfer thereof or in exchange thereof or in lieu thereof whether or
not notation of such consent is made upon the Notes or Certificates) for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement, or of modifying in any manner the rights of
the Noteholders or the Certificateholders; provided, however, that no such
amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or
distributions that shall be required to be made on any Note or the Specified
Reserve Account Balance, (b) reduce the aforesaid percentage required to consent
to any such amendment or (c) amend Section 4.3, without the consent of the
Holders of all of the Notes and the Holders of all of the Certificates then
outstanding. The Administrator shall furnish notice of the substance of any
proposed amendment, supplement or consent under this Section 8.2 to each of the
Rating Agencies prior to obtaining consent thereto.

     SECTION 8.3 Form of Amendments.

          (a)     Promptly after the execution of any amendment, supplement or
consent pursuant to Section 8.1 or 8.2, the Owner Trustee shall furnish written
notification of the substance of such amendment or consent to each
Certificateholder and the Indenture Trustee.

          (b)     It shall not be necessary for the consent of
Certificateholders, the Noteholders or the Indenture Trustee pursuant to Section
8.2 to approve the particular form of any proposed amendment or consent, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents (and any other consents of Certificateholders
provided for in this Agreement or in any other Basic Document) and of evidencing
the authorization of the execution thereof by Certificateholders and Noteholders
shall be subject to such reasonable requirements as the Owner Trustee may
prescribe.

          (c)     Prior to the execution of any amendment to this Agreement or
the Certificate of Trust, the Owner Trustee shall be entitled to receive and
rely upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and that all conditions precedent to
such execution have been satisfied. The Owner Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Owner Trustee's
own rights, duties or immunities under this Agreement or otherwise.

          (d)     Promptly after the execution of any amendment to the
Certificate of Trust, the Owner Trustee shall cause the filing of such amendment
with the Secretary of State.

                                     - 23 -

<PAGE>

                                   ARTICLE IX
                                  MISCELLANEOUS

     SECTION 9.1 No Legal Title to Owner Trust Estate. The Certificateholders
shall not have legal title to any part of the Owner Trust Estate. The
Certificateholders shall be entitled to receive distributions with respect to
their undivided beneficial interest therein only in accordance with Articles V
and VII. No transfer, by operation of law or otherwise, of any right, title, and
interest of the Certificateholders to and in their ownership interest in the
Owner Trust Estate shall operate to terminate this Agreement or the trusts
hereunder or entitle any transferee to an accounting or to the transfer to it of
legal title to any part of the Owner Trust Estate.

     SECTION 9.2 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Seller, the
Certificateholders, the Administrator and, to the extent expressly provided
herein, the Indenture Trustee and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Owner Trust Estate
or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein. The Administrator shall be a third party
beneficiary with respect to the rights granted to it under Section 6.10(a).

     SECTION 9.3 Notices. All demands, notices and communications upon or to the
Seller, the Servicer, the Administrator, the Indenture Trustee, the Owner
Trustee, the Rating Agencies or any Certificateholder under this Agreement shall
be delivered as specified in Appendix B to the Pooling Agreement.

     SECTION 9.4 Severability. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held
invalid, then such covenants, agreements, provisions or terms shall be deemed
enforceable to the fullest extent permitted, and if not so permitted, shall be
deemed severable from the remaining covenants, agreements, provisions or terms
of this Agreement and shall in no way affect the validity or enforceability of
the other provisions of this Agreement or of the Certificates or the rights of
the holders thereof.

     SECTION 9.5 Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts (and by different parties on separate
counterparts), each of which when so executed and delivered shall be an
original, but all of which together shall constitute one and the same
instrument.

     SECTION 9.6 Successors and Assigns. All covenants and agreements contained
herein shall be binding upon, and inure to the benefit of, the Seller, the Owner
Trustee and each Certificateholder and their respective successors and permitted
assigns, all as herein provided. Any request, notice, direction, consent, waiver
or other instrument or action by a Certificateholder shall bind the successors
and assigns of such Certificateholder.

     SECTION 9.7 No Petition Covenant. Notwithstanding any prior termination of
this Agreement, the Trust (or the Owner Trustee, on behalf of the Trust), and
each Certificateholder, by accepting a Certificate (or interest therein), hereby
covenant and agree that they shall not, prior to the date which is one year and
one day after the termination of this Agreement acquiesce,

                                     - 24 -

<PAGE>

petition or otherwise invoke or cause the Seller to invoke the process of any
court or governmental authority for the purpose of commencing or sustaining a
case against the Seller under any federal or state bankruptcy, insolvency or
similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Seller or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Seller.

     SECTION 9.8 No Recourse. Each Certificateholder by accepting a Certificate
(or interest therein) acknowledges that such Person's Certificate (or interest
therein) represents beneficial interests in the Trust only and does not
represent interests in or obligations of the Seller, the Servicer, the
Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof
and no recourse, either directly or indirectly, may be had against such parties
or their assets, except as may be expressly set forth or contemplated in this
Agreement, the Certificates or the Basic Documents. Except as expressly provided
in the Basic Documents, neither the Seller, the Servicer nor the Owner Trustee
in their respective individual capacities, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns,
shall be personally liable for, nor shall recourse be had to any of them for,
the distribution of any amount with respect to the Certificates, or the Owner
Trustee's performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in the Certificates or this Agreement,
it being expressly understood that said covenants and obligations have been made
by the Owner Trustee solely in its capacity as the Owner Trustee. Each
Certificateholder by the acceptance of a Certificate (or beneficial interest
therein) shall agree that, except as expressly provided in the Basic Documents,
in the case of nonpayment of any amounts with respect to the Certificates, it
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom.

     SECTION 9.9 Headings. The headings of the various Articles and Sections
herein are for purposes of reference only and shall not affect the meaning or
interpretation of any provision hereof.

     SECTION 9.10 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws.

     SECTION 9.11 Administrator. The Administrator is authorized to execute on
behalf of the Trust all such documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Trust to prepare, file
or deliver pursuant to the Basic Documents. Upon request, the Owner Trustee
shall execute and deliver to the Administrator a power of attorney appointing
the Administrator as the Trust's agent and attorney-in-fact to execute all such
documents, reports, filings, instruments, certificates and opinions.

     SECTION 9.12 Amended and Restated Trust Agreement. This Trust Agreement is
the amended and restated trust agreement contemplated by the Trust Agreement
dated as of May 14, 2003 between the Seller and the Owner Trustee.

                                     - 25 -

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Trust
Agreement to be duly executed by their respective officers hereunto duly
authorized, as of the day and year first above written.

                                        CHASE MANHATTAN BANK USA, NATIONAL
                                        ASSOCIATION as Owner Trustee

                                        By:
                                           ----------------------------------
                                        Name:  John Cashin
                                        Title: Vice President

                                        NAVISTAR FINANCIAL RETAIL RECEIVABLES
                                        CORPORATION, as Seller

                                        By:
                                           ----------------------------------
                                        Name:  Andrew J. Cederoth
                                        Title: Vice President and Treasurer

Acknowledged and Accepted:

NAVISTAR FINANCIAL CORPORATION,
as Servicer

By:
   -----------------------------------
Name:  Andrew J. Cederoth
Title: Vice President and Treasurer

<PAGE>

                                                                       EXHIBIT A

FORM OF CERTIFICATE
NUMBER R-__
OWNERSHIP INTEREST: ___%

                       SEE REVERSE FOR CERTAIN DEFINITIONS

          THIS CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF (i) AN
     "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE
     RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, ("ERISA")) THAT IS
     SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (ii) A PLAN DESCRIBED IN
     SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
     "CODE"), OR (iii) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY
     REASON OF A PLAN'S INVESTMENT IN THE ENTITY. BY ACCEPTING AND HOLDING THIS
     CERTIFICATE, THE HOLDER HEREOF AND THE CERTIFICATE OWNER SHALL EACH BE
     DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS NOT A BENEFIT PLAN.

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED
     ON JUNE 5, 2003 HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED (THE "ACT"), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
     OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM
     REGISTRATION THEREUNDER.

                      Navistar Financial 2003-A Owner Trust

                                   CERTIFICATE

     evidencing a fractional undivided interest in the Trust, as defined below,
     the property of which includes a pool of retail loans evidenced by notes
     secured by new and used medium and heavy duty trucks, truck chassis, buses
     and trailers and a beneficial interest in a pool of retail leases and the
     underlying medium and heavy duty trucks, truck chassis, buses and trailers.

     (This Certificate does not represent an interest in or obligation of
     Navistar Financial Retail Receivables Corporation, Navistar Financial
     Corporation, Navistar Leasing Company, Harco Leasing Company, Inc.,
     International Truck and Engine Corporation, Navistar International
     Corporation, the Owner Trustee or any of their respective affiliates,
     except to the extent described below.)

          THIS CERTIFIES THAT _________________________ is the registered owner
of a nonassessable, fully-paid, fractional undivided interest in Navistar
Financial 2003-A Owner Trust (the "Trust").

                                       A-1

<PAGE>

          The Trust was created pursuant to a trust agreement, dated as of May
14, 2003 (as amended and restated as of June 5, 2003 and as further amended,
restated or supplemented from time to time, the "Trust Agreement"), between the
Seller and Chase Manhattan Bank USA, National Association, as owner trustee (the
"Owner Trustee"), a summary of certain of the pertinent provisions of which is
set forth below. To the extent not otherwise defined herein, the capitalized
terms used herein have the meanings assigned to them in the Trust Agreement.

          This Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement, the terms of which are
incorporated herein by reference and made a part hereof, to which Trust
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

          The Holder of this Certificate acknowledges and agrees that its rights
to receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as and to the extent described in the Pooling
Agreement, the Servicing Agreement and the Indenture.

          Each Certificateholder with respect to a Certificate, by its
acceptance of a Certificate, covenants and agrees that such Certificateholder
with respect to a Certificate, shall not, prior to the date which is one year
and one day after the termination of the Trust Agreement, acquiesce, petition or
otherwise invoke or cause the Seller to invoke the process of any court or
governmental authority for the purpose of commencing or sustaining a case
against the Seller under any federal or state bankruptcy, insolvency,
reorganization or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Seller or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Seller.

          Distributions on this Certificate shall be made as provided in the
Trust Agreement by the Owner Trustee by wire transfer, check mailed or, where
possible, intra-bank book entry to the Certificateholder of record in the
Certificate Register without the presentation or surrender of this Certificate
or the making of any notation hereon. Except as otherwise provided in the Trust
Agreement and notwithstanding the above, the final distribution on this
Certificate shall be made after due notice by the Owner Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office maintained for such purpose by the Owner Trustee in
the Borough of Manhattan, the City of New York.

          Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee by manual signature, this
Certificate shall not entitle the Holder hereof to any benefit under the Trust
Agreement, the Pooling Agreement or the Servicing Agreement or be valid for any
purpose.

                                       A-2

<PAGE>

          THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

                                       A-3

<PAGE>

          IN WITNESS WHEREOF, the Owner Trustee, not in its individual capacity,
but solely as Owner Trustee, has caused this Certificate to be duly executed.

Dated:  June 5, 2003                    NAVISTAR FINANCIAL 2003-A OWNER TRUST

                                        By:  Chase Manhattan Bank USA, National
                                        Association, not in its individual
                                        capacity but solely as Owner Trustee

                                        By:   /s/ John J. Cashin
                                           -------------------------------------
                                        Name: John J. Cashin
                                        Title:   Vice President

OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Certificates referred to in the within-mentioned Trust
     Agreement.

CHASE MANHATTAN BANK USA,                 CHASE MANHATTAN BANK USA,
NATIONAL ASSOCIATION                 OR   NATIONAL ASSOCIATION

----------------------------------        --------------------------------------
not in its individual capacity but        not in its individual capacity but
solely as Owner Trustee                   solely as Owner Trustee

                                          By: JPMorgan Chase Bank, as
                                          Authenticating Agent

By:  /s/ John J. Cashin                      By:
   -------------------------------           -----------------------------------
          Authorized Officer                          Authorized Officer

<PAGE>

                             REVERSE OF CERTIFICATE

          The Certificates do not represent an obligation of, or an interest in,
the Seller, the Servicer, Harco Leasing Company, Inc., Navistar Leasing Company,
the Indenture Trustee, the Owner Trustee or any affiliates of any of them and no
recourse may be had against such parties or their assets, except as may be
expressly set forth or contemplated herein or in the Trust Agreement or the
Basic Documents. In addition, this Certificate is not guaranteed by any
governmental agency or instrumentality and is limited in right of payment to
certain collections and recoveries with respect to the Receivables (and certain
other amounts), all as more specifically set forth herein and in the Trust
Agreement, the Pooling Agreement and the Servicing Agreement. A copy of each of
the Pooling Agreement, the Servicing Agreement and the Trust Agreement may be
examined during normal business hours at the principal office of the Seller, and
at such other places, if any, designated by the Seller, by any Certificateholder
upon written request.

          The Trust Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Seller and the rights of the Certificateholders under the Trust Agreement at any
time by the Seller and the Owner Trustee with the consent of (i) the Holders of
the Notes evidencing not less than a majority of the Outstanding Amount of the
Controlling Class, and (ii) Certificateholders whose Certificates evidence not
less than a majority of the ownership interest in the Trust, each as of the
close of the preceding Distribution Date. Any such consent by the Holder of this
Certificate shall be conclusive and binding on such Holder and on all future
Holders of this Certificate and of any Certificate issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Trust Agreement also
permits the amendment thereof, in certain circumstances, without the consent of
the Holders of any of the Certificates or the Notes.

          As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Owner Trustee in the City of New York, accompanied by (i) a written
instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing and (ii) certain opinions required by
Section 3.4(b) of the Trust Agreement, and thereupon one or more new
Certificates of authorized denominations evidencing the same aggregate interest
in the Trust will be issued to the designated transferee. The initial
Certificate Registrar appointed under the Trust Agreement is JPMorgan Chase
Bank, New York, New York.

          The Owner Trustee, the Certificate Registrar and any agent of the
Owner Trustee or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Owner Trustee, the Certificate Registrar or any such agent shall be affected
by any notice to the contrary.

<PAGE>

          The obligations and responsibilities created by the Trust Agreement
and the Trust created thereby shall terminate upon the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
the Trust Agreement, the Pooling Agreement and the Servicing Agreement and the
disposition of all property held as part of the Trust.

<PAGE>

                                   ASSIGNMENT

          FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

--------------------------------------------------------------------------------

(Please print or type name and address, including postal zip code, of assignee)

--------------------------------------------------------------------------------

the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing __________________________________________ Attorney
to transfer said Certificate on the books of the Certificate Registrar, with
full power of substitution in the premises.

Dated:                                                           *
                                  -------------------------------
                                  Signature Guaranteed:

                                                                 *
                                  -------------------------------

* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Such signature must be
guaranteed by a member firm of the New York Stock Exchange or a commercial bank
or trust company.

<PAGE>

                                                                       EXHIBIT B

                             CERTIFICATE OF TRUST OF
                      Navistar Financial 2003-A Owner Trust

          This Certificate of Trust of Navistar Financial 2003-A Owner Trust
(the "Trust"), is being duly executed and filed on behalf of the Trust by the
undersigned, as trustee, to form a statutory trust under the Delaware Statutory
Trust Act [(12 Del. C. Section3801 et seq.) (the "Act")].

          1.   Name. The name of the business trust formed by this Certificate
of Trust is Navistar Financial 2003-A Owner Trust.

          2.   Delaware Trustee. The name and business address of the trustee of
the Trust in the State of Delaware is _________________, _______________,
__________, Delaware _________, Attention: ______________.

          3.   This Certificate of Trust shall be effective upon filing.

          IN WITNESS WHEREOF, the undersigned has executed this Certificate of
Trust in accordance with Section 3811(a)(1) of the Act.

                                        By:
                                           -------------------------------------
                                        not in its individual capacity but
                                        solely as Owner Trustee

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

                                       B-1<PAGE>

                                                                    Exhibit 10.1

                            CORPUS CHRISTI LNG, L.P.
                        (A Delaware limited partnership)

                          LIMITED PARTNERSHIP AGREEMENT

THE SECURITIES REPRESENTED BY THIS INSTRUMENT OR DOCUMENT HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE. WITHOUT SUCH REGISTRATION, SUCH
SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED AT ANY TIME, EXCEPT UPON
DELIVERY TO THE PARTNERSHIP OF AN OPINION OF COUNSEL SATISFACTORY TO THE GENERAL
PARTNER OF THE PARTNERSHIP THAT REGISTRATION IS NOT REQUIRED FOR SUCH TRANSFER
OR THE SUBMISSION TO THE GENERAL PARTNER OF THE PARTNERSHIP OF SUCH OTHER
EVIDENCE AS MAY BE SATISFACTORY TO THE GENERAL PARTNER TO THE EFFECT THAT ANY
SUCH TRANSFER OR SALE WILL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR ANY RULE OR REGULATION
PROMULGATED THEREUNDER.

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I DEFINITIONS..........................................................1

   1.1      "ACT"..............................................................1
   1.2      "ADDITIONAL CONTRIBUTED EQUITY"....................................1
   1.3      "ADJUSTED CAPITAL ACCOUNT BALANCE".................................1
   1.4      "AFFILIATE"........................................................1
   1.5      "AFFILIATE TRANSACTION"............................................1
   1.6      "AGREEMENT"........................................................1
   1.7      "ASSET VALUE"......................................................2
   1.8      "BANKRUPTCY".......................................................2
   1.9      "BANKRUPTCY ACTION"................................................2
   1.10     "BANKRUPTCY LAW"...................................................3
   1.11     "CAPITAL ACCOUNT"..................................................3
   1.12     "CHANGE OF CONTROL"................................................3
   1.13     "CONSTRUCTION PERIOD"..............................................3
   1.14     "CONTRIBUTED EQUITY"...............................................4
   1.15     "CONTRIBUTING PARTNER".............................................4
   1.16     "CONTRIBUTION DATE"................................................4
   1.17     "CONTROL"..........................................................4
   1.18     "DELINQUENT CONTRIBUTION"..........................................4
   1.19     "DELINQUENT PARTNER"...............................................4
   1.20     "DEPRECIATION".....................................................4
   1.21     "DIRECTOR".........................................................4
   1.22     "EARLY CONTRIBUTION DATE"..........................................4
   1.23     "ENVIRONMENTAL LAWS"...............................................4
   1.24     "FERC".............................................................5
   1.25     "FINANCING PLAN"...................................................5
   1.26     "GAAP".............................................................5
   1.27     "GENERAL PARTNER"..................................................5
   1.28     "GOVERNMENTAL ENTITY"..............................................5
   1.29     "GOVERNMENTAL PERMITS".............................................5
   1.30     "INDEMNITEE".......................................................5
   1.31     "INTEREST".........................................................5
   1.32     "I.R.C."...........................................................6
   1.33     "LIMITED PARTNERS".................................................6
   1.34     "LIQUIDATOR".......................................................6
   1.35     "MAJOR DECISIONS"..................................................6
   1.36     "MAJORITY".........................................................6
   1.37     "MAJORITY IN INTEREST".............................................6
   1.38     "MATERIAL ADVERSE EFFECT"..........................................6
   1.39     "MINIMUM GAIN".....................................................6
   1.40     "NET CASH FLOW"....................................................6
   1.41     "NONRECOURSE DEDUCTIONS"...........................................6
   1.42     "OTHER PARTNERS"...................................................6
   1.43     "PARTNER"..........................................................6
   1.44     "PARTNER NONRECOURSE DEBT".........................................6
   1.45     "PARTNER NONRECOURSE DEBT MINIMUM GAIN"............................7
   1.46     "PARTNER NONRECOURSE DEDUCTIONS"...................................7
   1.47     "PARTNERSHIP"......................................................7

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<PAGE>

   1.48     "PARTNERSHIP ACCOUNTANT"...........................................7
   1.49     "PARTNERSHIP ASSETS"...............................................7
   1.50     "PARTNERSHIP MINIMUM GAIN".........................................7
   1.51     "PERCENTAGE INTEREST"..............................................7
   1.52     "PERSON"...........................................................7
   1.53     "POSTCONSTRUCTION PERIOD"..........................................7
   1.54     "PRECONSTRUCTION PERIOD"...........................................7
   1.55     "PROFIT" AND "LOSS"................................................7
   1.56     "PROJECT"..........................................................8
   1.57     "PROJECT APPROVAL".................................................8
   1.58     "PROPERTY".........................................................8
   1.59     "REGULATIONS"......................................................8
   1.60     "REQUIREMENTS OF LAW"..............................................8
   1.61     "TEAM MEMBER"......................................................8

ARTICLE II FORMATION OF THE PARTNERSHIP........................................8

   2.1      FORMATION OF LIMITED PARTNERSHIP...................................8
   2.2      NAME...............................................................8
   2.3      CHARACTER OF BUSINESS..............................................9
   2.4      REGISTERED OFFICE AND AGENT........................................9
   2.5      OTHER FILING.......................................................9
   2.6      TERM AND FISCAL YEAR...............................................9

ARTICLE III CAPITAL/PERCENTAGE INTERESTS/FUTURE FINANCING......................9

   3.1      CAPITAL CONTRIBUTIONS..............................................9
   3.2      PERCENTAGE INTERESTS CAPITAL......................................10
   3.3      FUTURE FINANCING..................................................10
   3.4      ADDITIONAL CONTRIBUTED EQUITY.....................................10
   3.5      DELINQUENT CONTRIBUTIONS..........................................11
   3.6      CONSTRUCTION FINANCING............................................11
   3.7      NO FURTHER CONTRIBUTED EQUITY.....................................12
   3.8      RETURN OF CAPITAL.................................................13
   3.9      BENEFIT OF OBLIGATIONS............................................13
   3.10     RETURN OF REAL PROPERTY...........................................13

ARTICLE IV CAPITAL ACCOUNTS, ALLOCATIONS, AND TAX MATTERS.....................13

   4.1      CAPITAL ACCOUNTS..................................................13
   4.2      ALLOCATION OF PROFIT AND LOSS.....................................14
   4.3      SPECIAL ALLOCATIONS...............................................14
   4.4      I.R.C. SECTION 704(C) TAX ALLOCATION..............................16
   4.5      SPECIAL ALLOCATIONS REGARDING PAYMENTS TO AFFILIATES..............16
   4.6      ALLOCATION OF GAINS AND LOSSES UPON LIQUIDATION...................16
   4.7      ALLOCATION FOR GAAP AND FINANCIAL REPORTING.......................16
   4.8      PARTNER ACKNOWLEDGMENT............................................17

ARTICLE V DISTRIBUTIONS.......................................................17

   5.1      DISTRIBUTIONS OF NET CASH FLOW....................................17
   5.2      TAX DISTRIBUTIONS.................................................17
   5.3      DISTRIBUTIONS IN LIQUIDATION......................................17

ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE PARTNERS.....................18

                                       ii

<PAGE>

   6.1      IN GENERAL........................................................18
   6.2      REPRESENTATIONS AND WARRANTIES....................................18

ARTICLE VII RIGHTS AND OBLIGATIONS OF PARTNERS................................20

   7.1      LIMITED LIABILITY.................................................20
   7.2      LIABILITY OF A PARTNER TO THE PARTNERSHIP.........................20
   7.3      EXCULPATION.......................................................21
   7.4      PARTICIPATION IN MANAGEMENT.......................................21
   7.5      SURVIVAL OF OBLIGATIONS...........................................21

ARTICLE VIII MEETINGS OF PARTNERS.............................................21

   8.1      PLACE OF MEETINGS AND MEETINGS BY TELEPHONE.......................21
   8.2      CALL OF MEETINGS..................................................21
   8.3      NOTICE OF MEETINGS OF PARTNERS....................................21
   8.4      MANNER OF GIVING NOTICE...........................................21
   8.5      ADJOURNED MEETING; NOTICE.........................................22
   8.6      QUORUM; VOTING....................................................22
   8.7      WAIVER OF NOTICE BY CONSENT OF ABSENT PARTNERS....................22
   8.8      PARTNER ACTION BY WRITTEN CONSENT WITHOUT A MEETING...............22
   8.9      RECORD DATE FOR PARTNER NOTICE, VOTING, AND GIVING CONSENTS.......22
   8.10     PROXIES...........................................................23

ARTICLE IX INDEMNIFICATION OF PARTNERS........................................23

   9.1      GENERAL...........................................................23
   9.2      ENVIRONMENTAL.....................................................23
   9.3      LIMITATIONS.......................................................24

ARTICLE X MANAGEMENT OF THE PARTNERSHIP.......................................24

   10.1     THE GENERAL PARTNER...............................................24
   10.2     MAJOR DECISIONS...................................................25
   10.3     RESIGNATION.......................................................26
   10.4     REMUNERATION OF GENERAL PARTNER; REIMBURSEMENT OF EXPENSES........26
   10.5     LIMITATION ON LIABILITY OF GENERAL PARTNER; INDEMNIFICATION.......26
   10.6     NO GUARANTEE OF RETURN BY GENERAL PARTNER.........................26
   10.7     OTHER BUSINESSES OR VENTURES......................................27
   10.8     AFFILIATE TRANSACTIONS............................................27
   10.9     REMOVAL OF CORPUS GP AS GENERAL PARTNER...........................27
   10.10    OFFICERS AND EMPLOYEES............................................27

ARTICLE XI COVENANTS..........................................................28

   11.1     COVENANTS OF THE PARTNERSHIP AND THE PARTNERS.....................28
   11.2     COVENANTS OF THE PARTNERSHIP AND THE GENERAL PARTNER..............29

ARTICLE XII RECORDS AND REPORTS...............................................31

   12.1     MAINTENANCE AND INSPECTION OF PARTNER REGISTER....................31
   12.2     MAINTENANCE AND INSPECTION OF PARTNERSHIP AGREEMENT...............31
   12.3     MAINTENANCE AND INSPECTION OF OTHER RECORDS.......................31

ARTICLE XIII BOOKS, FINANCIALS AND TAX MATTERS................................31

   13.1     BOOKS AND RECORDS.................................................31
   13.2     FINANCIAL REPORTS.................................................32

                                       iii

<PAGE>

   13.3     TAX RETURNS.......................................................32
   13.4     TAX ELECTIONS.....................................................32
   13.5     TAX MATTERS PARTNER...............................................32
   13.6     THE PARTNERSHIP ACCOUNTANT........................................33

ARTICLE XIV NONDISCLOSURE OF INFORMATION......................................33

   14.1     CONFIDENTIALITY...................................................33
   14.2     DUTY OF CARE......................................................34

ARTICLE XV TRANSFERABILITY....................................................34

   15.1     TRANSFERABILITY OF INTERESTS......................................34
   15.2     OPTION TO PURCHASE................................................34
   15.3     BPU RIGHT TO SELL.................................................35
   15.4     BPU TAG-ALONG RIGHT...............................................35

ARTICLE XVI SUBSTITUTED PARTNERS..............................................36

ARTICLE XVII WAIVER OF PARTITION/COVENANT AGAINST RESIGNATION.................36

   17.1     WAIVER OF PARTITION...............................................36
   17.2     COVENANT NOT TO RESIGN OR DISSOLVE................................36

ARTICLE XVIII ADDITIONAL PARTNERS.............................................37

ARTICLE XIX DISSOLUTION.......................................................37

   19.1     DISSOLUTION.......................................................37
   19.2     DEEMED LIQUIDATION................................................38
   19.3     BANKRUPTCY, ETC., OF A LIMITED PARTNER............................38

ARTICLE XX DISPUTE RESOLUTION.................................................38

ARTICLE XXI MISCELLANEOUS.....................................................39

   21.1     AMENDMENTS........................................................39
   21.2     CHECKS, DRAFTS, EVIDENCE OF INDEBTEDNESS..........................39
   21.3     NOTICES...........................................................39
   21.4     GOVERNING LAW.....................................................40
   21.5     HEADINGS..........................................................40
   21.6     EXTENSION NOT A WAIVER............................................40
   21.7     PUBLICITY.........................................................40
   21.8     CONSTRUCTION AND AMENDMENT........................................40
   21.9     FURTHER ACTION....................................................40
   21.10    VARIATION OF PRONOUNS.............................................40
   21.11    SUCCESSORS AND ASSIGNS............................................41
   21.12    COUNTERPARTS......................................................41
   21.13    AMBIGUITIES.......................................................41
   21.14    TIME OF THE ESSENCE...............................................41
   21.15    ENTIRE AGREEMENT..................................................41

Exhibit A       Interests
Exhibit B       Cheniere's Contribution
Exhibit C       BPU's Contribution
Exhibit D       Land Plat

                                       iv

<PAGE>

                          LIMITED PARTNERSHIP AGREEMENT

       This Limited Partnership Agreement (this "Agreement") of Corpus Christi
LNG, LP, is entered into and effective as of May 15, 2003 (the "Effective
Date"), by and among Corpus Christi LNG-GP, Inc., a Delaware corporation
("Corpus GP"), as the general partner, BPU LNG, a Delaware limited liability
company, as a limited partner ("BPU"), and Cheniere LNG, Inc., a Delaware
corporation, as a limited partner ("Cheniere"). Cheniere and BPU and any other
party admitted as a limited partner in accordance with the terms hereof are
hereinafter collectively referred to as the "Limited Partners" and individually,
as a "Limited Partner". The General Partner and the Limited Partners are herein
collectively referred to as the "Partners".

                                R E C I T A L S:

       This Partnership was formed as of the Effective Date to develop, build,
own and operate a liquefied natural gas receiving and regasification facility at
the Sherwin Alumina site in Corpus Christi, Texas and as further shown on the
plat on Exhibit D (the "Project");

       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 General Partner
and the Limited Partners hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

       The following terms, as used herein, shall have the following respective
meanings:

       1.1    "Act" shall mean the Delaware Revised Uniform Limited Partnership
Act, as may from time to time have been or may be amended, or from and after the
date any successor statute applicable to the Partnership, in each case as
amended at such time by amendments that are, at that time applicable to the
Partnership.

       1.2    "Additional Contributed Equity" means, with respect to any Partner
the amount of capital contributed by such Partner to the Partnership in
accordance with Section 3.4 of this Agreement.

       1.3    "Adjusted Capital Account Balance" means, with respect to any
Partner for any period, the balance, if any, in such Partner's Capital Account
as of the end of such period after giving effect to adjustments in accordance
with Section 1.704 of the Regulations.

       1.4    "Affiliate" means with respect to any Person, a second Person
which is controlled by, controls or is under common control with such first
Person and, with respect to the Partnership, any constituent party of the
Partnership. For purposes of the foregoing, "control" of any Person means the
power to direct the management and policies of such Person, whether by the
ownership of voting securities, by contract or otherwise.

       1.5    "Affiliate Transaction" has the meaning set forth in Section 10.8.

       1.6    "Agreement" means this Limited Partnership Agreement, as amended
or restated from time to time.

                                        1

<PAGE>

       1.7    "Asset Value" with respect to any Partnership Asset means:

              (a)    The fair market value or otherwise agreed value on the date
of contribution of any asset contributed to the Partnership by any Partner;

              (b)    The fair market value or otherwise agreed value on the date
of distribution of any asset distributed by the Partnership to any Partner as
consideration for an Interest in the Partnership;

              (c)    The fair market value of all Partnership Assets at the time
of the happening of any of the following events: (A) the admission of a Partner
to, or the increase of an Interest of an existing Partner in, the Partnership in
exchange for Contributed Equity; or (B) the liquidation of the Partnership under
Section 1.704-1(b)(2)(ii)(g) of the Regulations; or

              (d)    The basis of the asset in all other circumstances.

       1.8    "Bankruptcy" with respect to any Person means any one of:

              (a)    The filing of a voluntary petition in bankruptcy or
reorganization or the filing for adoption of an arrangement under the United
States Bankruptcy Code;

              (b)    The making of a general assignment for the benefit of
creditors; or

              (c)    The commencement against such Person of an involuntary case
seeking the liquidation or reorganization of such Person under the Bankruptcy
Laws or an involuntary case or proceeding seeking the appointment of a receiver,
custodian, trustee or similar official for it, or to take possession of all or
substantially all of its property, and any of the following events occur (i)
such Person consents to such involuntary case or proceeding, (ii) the petition
commencing the involuntary case or preceding remains undismissed and unstayed
for a period of sixty (60) days, or (iii) an order for relief shall have been
issued or entered therein or a receiver, custodian, trustee or similar official
appointed.

       1.9    "Bankruptcy Action" means:

              (a)    Taking any action that might cause the Partnership or the
General Partner to become insolvent; or

              (b)    Commencing any case, proceeding or other action on behalf
of the Partnership or the General Partner under any existing or future law of
any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of
debtors;

              (c)    Instituting proceedings to have the Partnership or the
General Partner adjudicated as bankrupt or insolvent;

              (d)    Consenting to, or acquiescing in, the institution of
bankruptcy or insolvency proceedings against the Partnership or the General
Partner or the Partnership or the General Partner being adjudicated as bankrupt
or insolvent;

              (e)    Filing a petition or consenting to a petition seeking
reorganization, arrangement, adjustment, winding-up, dissolution, composition,
liquidation or other relief on

                                        2

<PAGE>

behalf of the Partnership or the General Partner of its debts under federal or
state law relating to bankruptcy;

              (f)    Seeking or consenting to the appointment of a receiver,
Liquidator, assignee, trustee, sequestrator, custodian or any similar official
for the Partnership or the General Partner or a substantial portion of either of
their properties or the appointment thereof;

              (g)    Making any assignment for the benefit of the Partnership's
or the General Partner's creditors; or

              (h)    Taking any action or causing the Partnership or the General
Partner to take any action in furtherance of any of the foregoing.

       1.10   "Bankruptcy Law" means Title 11 U.S. Code, or any similar federal
or state law for the relief of debtors.

       1.11   "Capital Account" means the capital account maintained for each
Partner in accordance with Section 4.1 of this Agreement.

       1.12   "Change of Control" means:

              (a)    with respect to any Person, the occurrence of any of the
following:

              (1)    the sale of all or substantially all of that Person's
assets, stock, membership or Partnership interests;

              (2)    the merger, reorganization, share exchange,
recapitalization, restructuring or consolidation of that Person, other than a
transaction that would result in the voting securities of that Person
outstanding immediately prior thereto to continue to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least 50% of the combined voting power of the voting
securities of that Person or such surviving entity outstanding immediately after
such transaction; or

              (3)    the acquisition by any "Person" or "Group" (within the
meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934)
of an aggregate of 40% or more of the beneficial ownership (within the meaning
of Rule 13d-3 of the Securities Exchange Act of 1934) of the issued and
outstanding voting securities of that Person; or

              (b)    with respect to the Partnership:

              (1)    the admission by the Partnership of any additional or
substitute General Partner; or

              (2)    any issuance of additional Limited Partner Interests or any
sale by Cheniere or any of Cheniere's Affiliates of their General Partner or
Limited Partner Interests such that the total of Interests owned by Cheniere and
its Affiliates constitutes less than twenty-five percent (25%) of all
then-outstanding Interests.

       1.13   "Construction Period" means that period beginning with the receipt
by the Partnership of Project Approval and ending immediately prior to the first
tolling of liquid natural gas through the Project for customers of the
Partnership.

                                        3

<PAGE>

       1.14   "Contributed Equity" of any Partner means that amount of capital
actually contributed by the Partner to the Partnership pursuant to this
Agreement.

       1.15   "Contributing Partner" has the meaning set forth in Section 3.5.

       1.16   "Contribution Date" has the meaning set forth in Section 3.4.

       1.17   "Control" (including the terms "controlling", "controlled by" or
"under common control with") means the possession, directly or indirectly,
through one or more intermediaries, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

       1.18   "Delinquent Contribution" has the meaning set forth in Section
3.5.

       1.19   "Delinquent Partner" has the meaning set forth in Section 3.5.

       1.20   "Depreciation" for each fiscal year shall mean an amount equal to
the depreciation, amortization or other cost recovery deduction allowable with
respect to a Partnership Asset for such fiscal year, except that if the Asset
Value of an asset differs from its adjusted basis for federal income tax
purposes at the beginning of such fiscal year, Depreciation with respect to that
asset shall be an amount that bears the same ratio to such beginning Asset Value
as the federal income tax depreciation, amortization or other cost recovery
deduction with respect to that asset for such fiscal year bears to such
beginning adjusted tax basis; provided, however, that if the federal income tax
depreciation, amortization or other cost recovery deduction with respect to that
asset for such fiscal year is zero, Depreciation shall be determined with
reference to such beginning Asset Value using any reasonable method determined
by the General Partner.

       1.21   "Director" means the Person designated by BPU to serve as an
unpaid member of the highest governing body of the General Partner in accordance
with Section 10.1 hereof.

       1.22   "Early Contribution Date" has the meaning set forth in Section
3.4(b).

       1.23   "Environmental Laws" means any federal, state, or local statute,
code, ordinance, rule, regulation, permit, consent, approval, license, judgment,
order, writ, judicial decision, common law rule, decree, agency interpretation,
injunction or other authorization or requirement whenever promulgated, issued,
or modified, including the requirement to register underground storage tanks,
relating to:

              (a)    emissions, discharges, spills, releases, or threatened
releases of pollutants, contaminants, hazardous substances, materials containing
hazardous substances, or hazardous or toxic materials or wastes into ambient
air, surface water, groundwater, watercourses, publicly or privately owned
treatment works, drains, sewer systems, wetlands, septic systems, or onto land;

              (b)    the use, treatment, storage, disposal, handling,
manufacturing, transportation. or shipment of hazardous substances, materials
containing hazardous substances, or hazardous and/or toxic wastes, material,
products, or by-products (or of equipment or apparatus containing hazardous
substances) as defined in or regulated under any statutes and their implementing
regulations including but not limited to: the Hazardous Materials Transportation
Act, 49 U.S.C. Section 1801 et seq., the Resource Conservation and Recovery Act,
42 U.S.C. Section 6901

                                        4

<PAGE>

et seq., the Comprehensive Environmental Response, Compensation and Liability
Act, as amended by the Superfund Amendments and Reauthorization Act, 42 U.S.C.
Section 9601 et seq., and/or the Toxic Substance Control Act. 15 U.S.C. Section
2601 et seq., each as amended from time to time; 42 U.S.C. 7401 et seq., 15,
U.S. C. 791 et seq., and

              (c)    otherwise relating to the pollution or the protection of
human health or the environment.

       1.24   "FERC" means the Federal Energy Regulatory Commission.

       1.25   "Financing Plan" means any financing plan for the operating and
construction expenses related to the Project during the Construction Period,
which Financing Plan shall describe in detail all intended sources and uses of
all Partnership funds during the Construction Period, including, without
limitation, the following:

              (a)    copies of or reasonably detailed descriptions of all
material terms of all agreements to be entered into by the Partnership or by the
General Partner on behalf of the Partnership for the admission of additional
Limited Partners, including alternate classes of partnership interests and any
dilution of existing Limited Partners' Interests;

              (b)    copies of or reasonably detailed descriptions of all
material terms of all agreements to be entered into by the Partnership or by the
General Partner on behalf of the Partnership for the obtainment of loans or debt
financing by the Partnership or by the General Partner on behalf of the
Partnership;

              (c)    copies of or reasonably detailed descriptions of all
material terms of all agreements to be entered into by the Partnership or by the
General Partner on behalf of the Partnership for the purchase of goods or
services in excess of One Hundred Thousand Dollars ($100,000) from a single
provider in one or more transactions; and

              (d)    projected monthly statements of operations for the
Construction Period.

       1.26   "GAAP" means generally accepted accounting principles consistently
applied in the United States of America.

       1.27   "General Partner" means Corpus Christi LNG-GP, Inc. (also referred
to herein as "Corpus GP"), the sole general partner of the Partnership or any
replacement or successor appointed pursuant to the provisions of this Agreement.

       1.28   "Governmental Entity" means any United States federal, state or
local, or any foreign government, governmental authority, regulatory or
administrative agency, governmental commission, court or tribunal (or any
department, bureau or division thereof).

       1.29   "Governmental Permits" means all franchises, approvals,
authorizations, permits, licenses, easements, registrations, qualifications,
leases, variances and similar rights required by the Partnership, as the case
may be, from any Governmental Entity for the Project.

       1.30   "Indemnitee" has the meaning set forth in Section 10.5(b).

       1.31   "Interest" means the ownership interest of a Partner in the
Partnership (which shall be considered personal property for all purposes),
consisting of (i) such Partner's

                                        5

<PAGE>

Percentage Interest in Profit, Loss, allocations of other items of income, gain,
deduction, and loss and distributions, (ii) such Partner's right to vote or
grant or withhold consents with respect to Partnership matters as provided
herein or in the Act, and (iii) such Partner's other rights and privileges as
herein provided.

       1.32   "I.R.C." means the Internal Revenue Code of 1986, as amended.

       1.33   "Limited Partners" means the parties set forth on Exhibit A and
each of the parties who may hereafter become additional or substituted Limited
Partners in accordance with this Agreement.

       1.34   "Liquidator" has the meaning set forth in Section 19.1(b).

       1.35   "Major Decisions" has the meaning set forth in Section 10.2.

       1.36   "Majority" means more than 50%.

       1.37   "Majority In Interest" means Partners holding a Majority of the
Percentage Interests.

       1.38   "Material Adverse Effect" means (a) any impairment of the ability
of the Partnership or any Partner to perform its obligations under this
Agreement or to conduct business generally, or of any Partner to enforce any
obligation of any other Partner or of the Partnership, or (b) any other material
adverse effect on the business, operations, properties, assets, condition or
prospects (financial or otherwise) of the Partnership or any Partner or any
Property of the Partnership, or (c) any impairment of the validity or
enforceability of this Agreement.

       1.39   "Minimum Gain" has the same meaning as the term "partnership
minimum gain" in Section 1.704-2(b)(2) and (d) of the Regulations.

       1.40   "Net Cash Flow" means, for any period, the excess of (a) revenues
for such period, over (b) expenses for such period.

       1.41   "Nonrecourse Deductions" has the same meaning as in Section
1.704-2(b)(1) of the Regulations.

       1.42   "Other Partners" means each Partner in the Partnership other than
the General Partner.

       1.43   "Partner" means each of the parties who executes this Agreement or
a counterpart of this Agreement as either a General Partner or a Limited Partner
and each of the parties who may hereafter become additional or substituted
Limited Partners in accordance herewith. References to the Partner in the
singular or as him, her, it, itself, or other like references shall also, where
the context so requires be deemed to include the plural or the masculine or
feminine reference, as the case may be; references to the Partners in the
plural, or other like references shall also, where the context so requires, be
deemed to include the singular, as the case may be.

       1.44   "Partner Nonrecourse Debt" has the same meaning as the term
"partner nonrecourse debt" in Section 1.704-2(b)(4) of the Regulations.

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<PAGE>

       1.45   "Partner Nonrecourse Debt Minimum Gain" has the same meaning as
the term "partner nonrecourse debt minimum gain" in Section 1.704-2(i)(2) of the
Regulations and shall be determined in the manner set forth in Section
1.704-2(i)(3) of the Regulations.

       1.46   "Partner Nonrecourse Deductions" has the meaning set forth in
Section 1.704-2(i)(1) of the Regulations.

       1.47   "Partnership" means Corpus Christi LNG, L.P.

       1.48   "Partnership Accountant" has the meaning set forth in Section
13.6.

       1.49   "Partnership Assets" means all of the personal and real property,
tangible or intangible, owned by the Partnership during the term of its
existence.

       1.50   "Partnership Minimum Gain" has the meaning set forth in Section
1.704-2(d) of the Regulations.

       1.51   "Percentage Interest" means for each Partner the percentage set
forth opposite such Partner's name on Exhibit A as adjusted pursuant to the
provisions of Section 3.5. The combined Percentage Interest of all Partners
shall at all times equal one hundred percent (100%).

       1.52   "Person" means an individual, partnership, limited liability
company, corporation, business trust, joint stock company, trust, unincorporated
association, joint venture, governmental authority or other entity of whatever
nature.

       1.53   "Postconstruction Period" means that period beginning on the first
day on which liquid natural gas is tolled through the Project facilities for
customers of the Partnership.

       1.54   "Preconstruction Period" means that period beginning with the
formation of the Partnership and ending upon the receipt by the Partnership of
Project Approval.

       1.55   "Profit" and "Loss" means for each fiscal year or other period, an
amount equal to the Partnership's taxable income or tax loss for the fiscal year
or other period, determined in accordance with Section 703(a) of the I.R.C.
(including all items of income, gain, loss or deduction required to be stated
separately under Section 703(a)(1) of the I.R.C.), with the following
adjustments:

              (a)    any income of the Partnership that is exempt from federal
income tax and not otherwise taken into account in computing Profit or Loss will
be added to taxable income or tax loss;

              (b)    any expenditures of the Partnership described in Section
705(a)(2)(B) of the I.R.C. or treated as Section 705(a)(2)(B) expenditures under
Section 1.704-l(b)(2)(iv)(i) of the Regulations, and not otherwise taken into
account in computing Profit or Loss, will be subtracted from taxable income or
tax loss;

              (c)    gain or loss resulting from any disposition of Partnership
Assets with respect to which gain or loss is recognized for federal income tax
purposes will be computed by reference to the Asset Value of the property,
notwithstanding that the adjusted tax basis of the property differs from its
Asset Value;

                                        7

<PAGE>

              (d)    in lieu of Depreciation, amortization and other cost
recovery deductions taken into account in computing taxable income or tax loss,
there will be taken into account Depreciation for the fiscal year or other
period as determined in accordance with Section 1.704-l(b)(2)(iv)(g) of the
Regulations;

              (e)    any items specially allocated pursuant to Section 4.3 and
Section 4.5 shall not be considered in determining Profit or Loss; and

              (f)    any increase or decrease to Capital Accounts as a result of
any adjustment to the book value of Partnership Assets pursuant to Section
1.704-1(b)(2)(iv)(f) or (g) of the Regulations shall constitute an item of
Profit or Loss as appropriate.

       1.56   "Project" has the meaning set forth in the Recitals to this
Agreement.

       1.57   "Project Approval" means the Partnership's receipt of all final
and non-appealable Governmental Permits, including all FERC approvals, necessary
to commence construction of the Project on the Property.

       1.58   "Property" means that certain parcel of real property contributed
to the Partnership by BPU in accordance with Section 3.1 hereof, as is more
completely described on Exhibit C hereto.

       1.59   "Regulations" means the Treasury regulations, including temporary
regulations, promulgated under the I.R.C., as from time to time in effect.

       1.60   "Requirements of Law" means, as to any Person, the Certificate or
Articles of Formation, Certificate or Articles of Incorporation, bylaws and
operating agreement or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other governmental authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

       1.61   "Team Member" means that person designated by BPU in accordance
with Section 10.1 hereof to serve as an employee of the General Partner whose
salary shall be charged against BPU's Additional Contributed Equity specified in
Section 3.4 hereof.

                                   ARTICLE II
                          FORMATION OF THE PARTNERSHIP

       2.1    Formation of Limited Partnership. The Partners desire to form a
limited partnership pursuant to and in accordance with the provisions of the
Act. This Agreement constitutes the partnership agreement of such Partnership,
effective upon the date of the certificate of limited partnership as filed with
the office of the Secretary of State of Delaware. All references to sections of
the Act include any corresponding provision or provisions of any such successor
statute. Except as expressly provided herein to the contrary, the rights and
obligations of the Partners and the administration and termination of the
Partnership shall be governed by the Act.

       2.2    Name. The name of the Partnership is Corpus Christi LNG, L.P. The
General Partner may, with prior written approval of a majority in number of the
Limited Partners, change the name of the Partnership from time to time and shall
give prompt written notice thereof to the Limited Partners; provided, however,
that such name may not contain any portion of the name

                                        8

<PAGE>

or mark of any Limited Partner without such Limited Partner's consent. In any
such event, the General Partner shall promptly file in the office of the
Secretary of State of Delaware an amendment to the Partnership's certificate of
limited partnership reflecting such change of name.

       2.3    Character of Business. The sole purpose of the Partnership shall
be to develop, build, own and operate a liquefied natural gas ("LNG") receiving
and regasification facility at the Sherwin Alumina site in Corpus Christi, Texas
and any and all activities necessary or incidental to the foregoing; provided,
however, that under no circumstances shall the Partnership engage in any
trading, hedging, futures activities, or any other derivative transactions
relating to the buying and selling of natural gas (including LNG) that would
expose the Partnership to commodity price fluctuations (but this shall not
preclude the Partnership from taking custody of natural gas in connection with
the normal operation of the Project for the purpose of processing such natural
gas but which does not expose the Partnership to commodity price fluctuations).
The Partnership shall not undertake, and the General Partner shall not without
prior written consent of all of the Limited Partners cause or attempt to cause
the Partnership to undertake, any business or other activity other than those
specified in this Section 2.3.

       2.4    Registered Office and Agent. The name and address of the
Partnership's initial registered agent and registered office is Corporation
Service Company, 2711 Centerville Road, Suite 400, Wilmington, New Castle
County, Delaware 19808. The Partnership's initial office and principal place of
business shall be 333 Clay Street, Suite 3400, Houston, Texas 77002. The General
Partner may change such registered agent, registered office, or principal place
of business from time to time upon prior written notice to all Limited Partners;
provided, however, that the registered office and registered agent of the
Corporation shall always be located in the continental United States of America.
The Partnership may from time to time have such other place or places of
business as may be determined by the General Partner.

       2.5    Other Filing. The General Partner shall, or shall cause the
Partnership to, file, execute, swear to, acknowledge, deliver, or record from
time to time, such limited partnership certificates, certificates of amendment,
certificates of cancellation, or other certificates, consents to and
appointments of agents for service of process, or any other certificates,
notices, statements or instruments as the General Partner deems necessary or
appropriate under the Act or under the laws of any jurisdiction in which the
Partnership is doing business to establish and continue the Partnership as a
limited partnership, to conduct its activities, to protect the limited liability
of the Partners or otherwise to comply with applicable law. The General Partner
shall file, from time to time, such fictitious or tradename statements or
certificates in such jurisdictions and offices as the General Partner considers
necessary or appropriate.

       2.6    Term and Fiscal Year. The existence of the Partnership shall be
perpetual, unless dissolved as hereinafter provided. The fiscal year of the
Partnership shall end on December 31 of each calendar year unless, for United
States federal income tax purposes, another fiscal year is required. The
Partnership shall have the same fiscal year for United States federal income tax
purposes and for accounting purposes.

                                   ARTICLE III
                  CAPITAL/PERCENTAGE INTERESTS/FUTURE FINANCING

       3.1    Capital Contributions. The Parties agree that on the date hereof,
(i) Cheniere shall contribute the assets set forth on Exhibit B attached hereto
and (ii) BPU agrees to contribute the assets set forth on Exhibit C attached
hereto.

                                        9

<PAGE>

       3.2    Percentage Interests Capital. Upon execution of this Agreement and
the contribution of the assets set forth in Section 3.1, each Limited Partner's
initial Capital Contribution and Percentage Interests shall be in the amount set
forth on Exhibit A.

       3.3    Future Financing. The Partners anticipate that during the
Postconstruction Period the Partnership may require additional funds for capital
expenditures or working capital requirements, and any such additional funding
shall be obtained from any of the following sources as contained in a budget
prepared by the General Partner:

              (a)    cash reserves of the Partnership;

              (b)    loans to be obtained from banks and other non-Affiliate
independent sources;

              (c)    with the approval of the Limited Partners, Additional
Contributed Equity made to the Partnership by the Partners, in proportion to
their Percentage Interests, in amounts determined according to Section 3.4 of
this Agreement and subject to Section 3.6 of this Agreement; or

              (d)    any other funding source to be determined by the General
Partner and approved by the Limited Partners.

       3.4    Additional Contributed Equity.

       During the Preconstruction Period only:

              (a)    In the event that the Partnership shall require or desire
funds in excess of those available to the Partnership from operations, the
General Partner may call for additional capital contributions to be contributed
to the Partnership pursuant to the terms of this Section 3.4 ("Additional
Contributed Equity"). If the General Partner determines the Partnership requires
such excess funds, the General Partner shall give written notice to the Other
Partners of (i) the purpose for which such Additional Contributed Equity is
required, (ii) the date on which the Additional Contributed Equity is due to the
Partnership, which date (the "Contribution Date") shall not be less than fifteen
(15) nor more than forty-five (45) days following the date of such notice and
(iii) the amount of Additional Contributed Equity due from each Partner, which
amount shall be based on such Partner's Percentage Interest. In the event of a
call for Additional Contributed Equity that is not expressly contemplated in the
budget, (A) the General Partner shall give written notice to the Other Partners
of (i) the purpose for which such Additional Contributed Equity is required,
(ii) the Contribution Date, which date shall not be less than ninety (90) nor
more than one hundred twenty (120) days following the date of such notice, and
(iii) the amount of Additional Contributed Equity due from each Partner, which
amount shall be based on such Partner's Percentage Interest and (B) the terms of
Section 3.4(b) shall apply. Notwithstanding any other provision of this
Agreement or this Section 3.4, pursuant to Section 3.1 above and Exhibit C
attached hereto, that the first Four Million Five Hundred Thousand and No/100
Dollars ($4,500,000) of Additional Contributed Equity shall be contributed by
BPU (including any transferees and assignees of any portion of BPU's Interest)
in complete satisfaction of its obligation to contribute capital as provided in
Section 3.1 (ii) above and Exhibit C hereto, and which contribution shall not
alter the Percentage Interests of the Partners. The collection from BPU and the
subsequent disbursement by the General Partner of the above referenced Four
Million Five Hundred Thousand and No/100 Dollars ($4,500,000) shall be performed
in accordance with cash call procedures agreed between the Partners. The General
Partner shall prepare and submit to BPU a rolling three (3) month forecast of
expenditures until

                                       10

<PAGE>

the above amount has been fully expended. The General Partner shall not submit a
cash call request to BPU in excess of the expenditures detailed in this
forecast. On or before the Contribution Date, each Partner shall pay to the
Partnership the amount due from such Partner in immediately available funds. It
is acknowledged by the parties that the Partnership may need additional funds
following the date hereof and that the General Partner may be required to call
for Additional Contributed Equity.

              (b)    Notwithstanding anything to the contrary contained in this
Section 3.4 or Section 3.5, if the General Partner calls for Additional
Contributed Equity that is not expressly contemplated in the budget and the
General Partner determines, in its reasonable business judgment, that the
Partnership requires such funds prior to the Contribution Date, the General
Partner shall provide notice to the Other Partners of such earlier need for
funds and the date by which such funds are required (the "Early Contribution
Date"). If any Partner meets such capital call on the Early Contribution Date,
the remaining Partners shall have until the Contribution Date to contribute the
required Additional Contributed Equity; provided, that the amount of such
required contribution shall accrue interest at the rate of eighteen percent
(18%) per annum from the Early Contribution Date through the date that such
Other Partners make the required contributions. In addition, if such Other
Partners fail to make any required contribution (together with all accrued
interest) by the Contribution Date, such Partner shall be deemed a Delinquent
Partner subject to Section 3.5.

              (c)    Notwithstanding any other provision herein contained, the
General Partner shall not be permitted pursuant to this Section 3.4 to call for
Additional Contributed Equity, whether via a single call or any series of calls
by the General Partner for Additional Capital, in excess of Nine Million dollars
($9,000.000.00) without first obtaining the written consent of all Limited
Partners.

       3.5    Delinquent Contributions. If a Partner fails to contribute any
Additional Contributed Equity required pursuant to Section 3.4 (a "Delinquent
Partner") by the Contribution Date, any other Partner (other than an Affiliate
of the Delinquent Partner) which is not a Delinquent Partner (a "Contributing
Partner") may, but shall not be required, to contribute the portion of such
Additional Contributed Equity that the Delinquent Partner failed to contribute
(the "Delinquent Contribution"). If the Contributing Partner makes a
contribution in the amount of the Delinquent Contribution, the Delinquent
Partner's Percentage Interest shall be reduced to an amount equal to (A) the
aggregate amount of Contributed Equity by all Partners (determined immediately
prior to the Delinquent Contribution) multiplied by (B) the Delinquent Partner's
Percentage Interest, and (C) 0.9, divided by (D) the aggregate amount of
Contributed Equity by all Partners (including the contribution of the Delinquent
Contribution), and then multiplied by (E) 100, and the Percentage Interest of
the Contributing Partner who made the Delinquent Contribution shall be increased
proportionately. In the event a Partner fails to contribute any Additional
Contributed Equity required pursuant to Section 3.4 on more than one occasion,
such Delinquent Partner shall thereafter have no voting or approval rights under
this Agreement (including but not limited to the approval rights under Section
10.2) except the right to approve or vote on amendments to this Agreement but
only to the extent any such amendment would effect the distributions or
allocations to such Limited Partner or its limited liability as a Limited
Partner.

       3.6    Construction Financing. At such time as is reasonably determined
by the General Partner but in no event later than obtaining Project Approval and
at least ninety (90) days prior to the execution of any material transaction
contemplated in a Financing Plan, the General Partner shall prepare and
distribute to the Partners a draft Financing Plan. Subject to the

                                       11

<PAGE>

provisions of this Section 3.6 and Sections 10.2 and 10.8 hereof, the General
Partner shall have the right, and power to effect such Financing Plan on behalf
of the Partnership to satisfy all of the Partnership's capital or funding needs
during the Construction Period.

              (a)    Notwithstanding the foregoing, the Limited Partners shall,
within seven (7) business days after the delivery of any Financing Plan deliver
to the General Partner in writing, if at all, questions or objections regarding
any transaction contemplated by such Financing Plan (an "LP Query"). Within
seven (7) business days after its receipt of any LP Query, the General Partner
shall meet with the Limited Partners, either in person or telephonically in
accordance with Article VIII hereof, to consider and discuss the issues raised
in the LP Query.

              (b)    Any equity financing obtained by the Partnership shall
dilute each of the Limited Partners pro rata based on the Percentage Interests
of such Limited Partners. If the General Partner or its Affiliate provides
equity financing for the construction of the Project it will do so at terms not
less favorable than those terms obtainable from an unaffiliated third party.
Each Limited Partner shall have the option to participate in any equity
financing pro rata based on the Percentage Interests of such Limited Partners
relative to all other Limited Partners. In the event a Limited Partner elects to
not participate in the equity financing of the Project during the Construction
Period, the penalty provisions described in Section 3.5 (c) shall not apply.

              (c)    Neither the General Partner nor any Affiliate of the
General Partner shall be permitted to provide to the Partnership debt or equity
financing pursuant to this Section 3.6 unless the General Partner first obtains
BPU's express written consent.

              (d)    Notwithstanding the foregoing, and provided BPU has met its
funding obligations per Section 3.4(a) of the Agreement, the General Partner
shall not be permitted to effect any Financing Plan the result of which would be
the dilution of BPU's Interest to less than twenty percent (20%) without first
obtaining BPU's express written consent, such consent not to be unreasonably
withheld; provide however, if BPU does not object to the Financing Plan as
submitted with fourteen (14) days of receipt, the Financing Plan shall be deemed
to be approved as submitted. In the event BPU does not consent to the Financing
Plan as submitted by the General Partner, the parties shall discuss alternatives
or modifications to such Financing Plan that would be acceptable to both
parties.

              (e)    Subject to the provisions of Sections 10.2 and 10.8 hereof,
the General Partner may, without the consent of the Limited Partners, exceed the
provisions of any Financing Plan approved by the Limited Partners pursuant to
Section 3.6(d) above by up to ten percent (10%) on any line item or up to ten
percent (10%) on overall expenditures budgeted and may apply savings in any line
item toward expenditures toward expenditures for other line items.
Notwithstanding the foregoing, the General Partner shall not be permitted to
exceed the provisions of any Financing Plan approved by the Limited Partners
pursuant to Section 3.6(d) above by more than ten percent (10%) without first
obtaining BPU's express written consent.

       3.7    No Further Contributed Equity. Except as expressly provided in
this Agreement or with the prior written consent of all Partners, no Partner
shall be required or entitled to contribute any other or further capital to the
Partnership, nor shall any Partner be required to loan any

                                       12

<PAGE>

funds to the Partnership. No Partner will have any obligation to restore any
negative balance in its Capital Account upon liquidation or dissolution of the
Partnership.

       3.8    Return of Capital. Except as herein provided with respect to
distributions during the term of the Partnership or following dissolution, no
Partner has the right to demand a return of such Partners' Contributed Equity
(or the balance of such Partner's Capital Account). Further, no Partner has the
right (i) to demand and receive any distribution from the Partnership in any
form other than cash or (ii) to bring an action of partition against the
Partnership or the Partnership Assets. No Partner shall be entitled to or shall
receive interest on such Partner's Contributed Equity. No Partner may withdraw
any capital from the capital of the Partnership except as expressly provided
herein or under the Act. No Partner shall have any priority over any other
Partner with respect to the return of any Contributed Equity, except as
expressly provided herein.

       3.9    Benefit of Obligations. Any obligation of the Partners to make
capital contributions to the Partnership shall not inure to the benefit of any
Person other than the Partnership and the Partners.

       3.10   Return of Real Property. Notwithstanding any other provision
herein contained, in the event that the Partnership determines for any reason to
cease development of the Project as a liquefied natural gas receiving and
regasification facility prior to the receipt of FERC approval for such facility,
or in the event that the Partnership has for any reason not obtained the
required FERC approval for the Project within five (5) years after the Effective
Date of this Agreement, then BPU shall have the right to cause the dissolution
of the Partnership. Upon such dissolution any and all real property contributed
to the Partnership, together with all improvements thereon or thereto, shall be
distributed to BPU and without any change in the status of title to such real
property. For the avoidance of doubt, the Property shall be conveyed to BPU
without any additional title exceptions or encumbrances other than those
existing as of the date of this Agreement or expressly approved in writing by
BPU. In addition, in the event of such dissolution, each Partner is hereby
granted the unrestricted right to use any intellectual property produced or
developed by or for the Partnership in connection with the Project.

                                   ARTICLE IV
                 CAPITAL ACCOUNTS, ALLOCATIONS, AND TAX MATTERS

       4.1    Capital Accounts. A separate Capital Account will be maintained
for each Partner in accordance with Section 1.704-1(b)(2) of the Regulations;
provided, however, that the initial Capital Accounts for each Partner shall be
equal to the amount set forth opposite such Partner's name on Exhibit A.
Consistent therewith, the Capital Account of each Partner will be determined and
adjusted as follows:

              (a)    Each Partner's Capital Account will be credited with:

       (1)    Any contributions of cash made by such Partner to the capital of
       the Partnership plus the Asset Value of any property contributed by such
       Partner to the capital of the Partnership (net of any liabilities to
       which such property is subject or which are assumed by the Partnership),
       including, without limitation any contributions made pursuant to Section
       3.4;

       (2)    The Partner's distributive share of Profit and items thereof
       allocated to such Partner; and

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<PAGE>

       (3)    Any other increases required by Section 1.704-1(b)(2) of the
       Regulations.

              (b)    Each Partner's Capital Account will be debited with:

       (1)    Any distributions of cash made from the Partnership to such
       Partner plus the Asset Value of any property distributed in kind to such
       Partner (net of any liabilities to which such property is subject or
       which are assumed by such Partner);

       (2)    The Partner's distributive share of Loss and items thereof
       allocated to such Partner; and

       (3)    Any other decreases required by Section 1.704-1(b)(2) of the
       Regulations.

The provisions of this Section 4.1 relating to the maintenance of Capital
Accounts have been included in this Agreement to comply with Section 704(b) of
the I.R.C. and the Regulations promulgated thereunder and will be interpreted
and applied in a manner consistent with those provisions. Notwithstanding
anything to the contrary in the preceding provisions of this Section 4.1, in no
event shall any change, modification or other event resulting from such
provisions modify the distributions provided in Article V.

       4.2    Allocation of Profit and Loss.

              (a)    Profit. Subject to the special allocation provisions of
Sections 4.3, 4.4, 4.5 and 4.6 of this Agreement, the Profits for any fiscal
year (or portion thereof) shall be allocated to the Partners, (i) first, to each
Partner to the extent that and in proportion to which they were allocated losses
under Sections 4.2(b) or 4.3 below, then (ii) pro rata, in accordance with their
Percentage Interests.

              (b)    Loss. Subject to the special allocation provisions of
Section 4.3 of this Agreement, the Losses for any fiscal year (or portion
thereof) shall be allocated as follows:

                     (i)    First, pro rata to each Partner, until its Adjusted
Capital Account Balances is reduced to zero;

                     (ii)   Thereafter, to the extent allowable, pro rata among
the partners in accordance with their respective partnership Percentage
Interests.

       4.3    Special Allocations.

              (a)    Minimum Gain Chargeback. Notwithstanding any other
provision of this Article IV, if there is a net decrease in Partnership Minimum
Gain during any fiscal year, then each Partner shall be allocated such amount of
income and gain for such year (and subsequent years, if necessary) determined
under and in the manner required by Sections 1.704-2(f) and (g) of the
Regulations as is necessary to meet the requirements for a chargeback of
Partnership Minimum Gain as provided in that Regulation.

              (b)    Partner Nonrecourse Debt Minimum Gain Chargeback.
Notwithstanding any other provision of this Article IV except Section 4.3(a), if
there is a net decrease in Partner Nonrecourse Debt Minimum Gain attributable to
a Partner Nonrecourse Debt during any fiscal year, any Partner who has a share
of the Partner Nonrecourse Debt Minimum Gain attributable to such Partner
Nonrecourse Debt determined in accordance with Section 1.704-2(i)(5) of the

                                       14

<PAGE>

Regulations, shall be allocated such amount of income and gain for such year
(and subsequent years, if necessary) determined under and in the manner required
by Section 1.704-2(i)(4) of the Regulations as is necessary to meet the
requirements for a chargeback of Partner Nonrecourse Debt Minimum Gain as is
provided in that Regulation.

              (c)    Qualified Income Offset. If a Partner unexpectedly receives
any adjustment. allocation or distribution described in Section
1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the Regulations, items of Partnership
income and gain shall be specifically allocated to such Partner in an amount and
manner sufficient to eliminate, to the extent required by the Regulations, any
deficit in the Adjusted Capital Account Balance of such Partner as quickly as
possible, provided that an allocation pursuant to this Subsection (c) shall be
made only if and to the extent that such Partner would have a deficit in the
Adjusted Capital Account Balance after all other allocations provided for in
Section 4.2 and this Section 4.3 of this Agreement tentatively have been made as
if this Subsection (c) were not in this Agreement.

              (d)    Limitation on Allocation of Loss. Notwithstanding anything
else contained in this Agreement, if an allocation of Loss to any Partner
pursuant to Section 4.2 of this Agreement would exceed the maximum amount of
Loss that may be allocated without causing such Partner to have a deficit in the
Adjusted Capital Account Balance of such Partner at the end of the fiscal year
for which the allocation is made, then an amount of such Loss equal to such
excess shall be allocated to the other Partners to the extent allowable under
this Section 4.3, and the remainder of such Loss, if any, shall be allocated to
that Partner.

              (e)    I.R.C. Section 754 Election. To the extent that an
adjustment to the tax basis of any asset pursuant to I.R.C. Section 734(b) or
I.R.C. Section 743(b) is required to be taken into account in determining
Capital Accounts as provided in Section 1.704-1(b)(2)(iv)(m) of the Regulations,
the adjustment shall be treated (if an increase) as an item of gain or (if a
decrease) as an item of loss, and such gain or loss shall be allocated to the
Partners consistent with the allocation of the adjustment pursuant to such
Regulation.

              (f)    Nonrecourse Deductions. Nonrecourse Deductions for any
fiscal year shall be allocated among the Partners in proportion to their
Percentage Interests.

              (g)    Partner Nonrecourse Deductions. Any Partner Nonrecourse
Deductions shall be allocated pursuant to Section 1.704-2(i) of the Regulations
to the Partner who bears the economic risk of loss with respect to the Partner
Nonrecourse Debt to which they are attributable.

              (h)    Purpose and Application. The purpose and the intent of the
special allocations provided for in this Section 4.3 are to comply with the
provisions of Sections 1.704-1(b) and 1.704-2 of the Regulations, and such
special allocations are to be made so as to accomplish that result. However, to
the extent possible, the General Partner in allocating items of income, gain,
loss, or deduction among the Partners, shall take into account the special
allocations in such a manner that the net amount of allocations to each Partner
shall be the same as such Partner's distributive share of Profit and Loss would
have been had the events requiring the special allocations not taken place. The
General Partner shall apply the provisions of this Section 4.3 in whatever order
the General Partner with the approval of the Limited Partners reasonably
believes will minimize any economic distortion that otherwise might result from
the application of the special allocations.

                                       15

<PAGE>

       4.4    I.R.C. Section 704(c) Tax Allocation. Solely for tax purposes, and
in accordance with I.R.C. Section 704(c), income, gain, loss, and deductions
with respect to property contributed to the Partnership by a Partner shall be
shared among the Partners so as to take account of the variation between the
adjusted basis of the property to the Partnership for federal income tax
purposes and its fair market value at the time of its contribution. If the value
of any property of the Partnership reflected in the Partners' Capital Accounts
is adjusted pursuant to Section 4.1(a)(3) or 4.1(b)(3), thereafter, allocations
of depreciation, depletion, amortization and gain or loss with respect to such
property shall be determined so as to take into account the variation between
the adjusted tax basis and the adjusted value of such property as reflected in
the Partners' Capital Accounts in the same manner as under I.R.C. Section
704(c). The Partners agree that the General Partner shall choose the method
under I.R.C. Section 704(c) to address the variation between the adjusted tax
basis and adjusted values of the Partnership Assets on the date hereof and that
the Partnership shall elect to use the method chosen by the General Partner;
provided, that Cheniere's consent shall be required to elect the remedial
allocation method described in Section 1.704-3(d)(1) of the Regulations.

       4.5    Special Allocations Regarding Payments to Affiliates. To the
extent that compensation paid to an Affiliate of one or more Partners by the
Partnership ultimately is determined not to be a payment to a third party, a
payment to a Partner other than in its capacity as such under I.R.C. Section
707(a), or a guaranteed payment under I.R.C. Section 707(c), such Partner or
Partners shall be specially allocated gross income of the Partnership in an
amount equal to the amount of such compensation, and such Partner or Partners'
Capital Account shall be adjusted to reflect the above special allocation and to
reflect the payment of such compensation as if it were a distribution. If the
Partnership's gross income for a fiscal year is less than the amount of such
compensation paid in such year, such Partner or Partners shall be specially
allocated gross income of the Partnership in the succeeding year or years until
the total amount so allocated equals the total amount of such compensation.

       4.6    Allocation of Gains and Losses upon Liquidation. Except to the
extent provided in Sections 4.3 and 4.4, gains and losses recognized by the
Partnership upon the sale, exchange or other disposition of all or substantially
all of the property owned by the Partnership shall be allocated in the following
manner:

              (a)    Gains shall be allocated (i) first, to the Partners with
negative Capital Account balances, that portion of gains (including any gains
treated as ordinary income for federal income tax purposes) which is equal in
amount to, and in proportion to, such Partners' respective negative Capital
Account balances; provided that no gain shall be allocated under this Section
4.6(a)(i) to a Partner once such Partner's Capital Account balance is brought to
zero and (ii), second, gains in excess of the amount allocated under (i) shall
be allocated to the Partners in the amounts and to the extent available to cause
the Partners' respective Capital Account balances to be in the same proportion
as the Partners' respective Percentage Interests.

              (b)    Losses shall be allocated to the Partners in the amounts
and to the extent available to cause the Partners' respective Capital Account
balances to be in the same proportion as the Partners' respective Percentage
Interests and (ii) second, any remaining loss to the Partners in accordance with
their Percentage Interests.

       4.7    Allocation for GAAP and Financial Reporting. The Partners agree
that Profits and Losses for any fiscal year shall be allocated to the Partners
for financial reporting purposes pro rata in accordance with their Percentage
Interests.

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       4.8    Partner Acknowledgment. The Partners agree to be bound by the
provisions of this Article IV in reporting their shares of Partnership income
and loss for income tax purposes, provided, however, that if a Limited Partner
is advised in good faith by its tax counsel or other tax advisors that the tax
position taken by the Partnership on any return or other statement is clearly
erroneous, and that such Limited Partner's taking a tax position consistent with
the provisions of this Agreement will subject the Limited Partner to a material
risk of fines or other penalties, such Limited Partner shall have the right to
take a position inconsistent with the provisions of this Agreement, so long as
it has given the General Partner written notice not less than ten (10) days
prior to taking any action pursuant to such inconsistent position (unless such
Limited Partner is required to take such action pursuant to such inconsistent
provision less than ten (10) days after receipt of reporting information from
the Partnership with respect to such erroneous position by the Partnership, in
which case such Limited Partner shall give the General Partner such notice that
is reasonable under the circumstances).

                                    ARTICLE V
                                  DISTRIBUTIONS

       5.1    Distributions of Net Cash Flow. The Partnership shall, to the
extent available and to the extent such funds are not necessary for future
working capital and operating and development expenses of the Partnership, as
determined by the General Partner in its reasonable discretion, make
distributions of Net Cash Flow on a quarterly basis to the Partners, pro rata,
in accordance with their Percentage Interests.

       5.2    Tax Distributions. Notwithstanding any other provision herein
contained, to the maximum extent possible, on or before the tenth (10th) day of
January, April, June and September of each year with the intent to meet
estimated tax payment obligations, the General Partner shall make distributions
of cash or borrowed funds to the Partners in an amount equal to forty percent
(40%) of the estimated Adjusted Allocated Taxable Income (as hereinafter
defined) of all Partners for the immediately preceding calendar quarter(s) (the
"Tax Distribution"), less an amount equal to the Tax Distributions previously
made in any such Fiscal Year. Any such distributions to the Partners shall be
made in proportion to the Adjusted Allocated Taxable Income of each Partner. The
"Adjusted Allocated Taxable Income" of a Partner shall be the estimated taxable
income of the Partnership, if any, which is allocated to such Partner for the
applicable period. For this purpose any income, gain, loss, depreciation and
other deduction which is recognized and allocated to a Partner pursuant to
Section 704(c) of the I.R.C. shall be excluded and tax distributions shall not
be made with respect to such amount(s). Any overpayment of distributions made
under this Section 5.2 shall be carried over to subsequent fiscal years and
treated as a current distribution until it is used.

       5.3    Distributions in Liquidation. Subject to the provisions of Article
XIX and after the allocations required by such Article XIX, upon the dissolution
and winding-up of the Partnership, the proceeds of sale and other assets of the
Partnership shall be distributed, not later than the latest time specified for
such distributions pursuant to Section 1.704-l(b)(2)(ii)(b)(2) of the
Regulations, to the Partners, pro rata, in accordance with their positive
Capital Account balances. With the unanimous approval of all of the Partners, a
pro rata portion of the distributions that would otherwise be made to the
Partners under the preceding sentence may be distributed to a trust established
for the benefit of the Partners for the purposes of liquidating Partnership
Assets, collecting amounts owed to the Partnership, and paying any contingent or
unforeseen liabilities or obligations of the Partnership arising out of or in
connection with the Partnership. The assets of any trust established under this
Section 5.3 will be distributed to the Partners from time to time by the trustee
of the trust upon approval of the Partners in the same

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proportions as the amount distributed to the trust by the Partnership would
otherwise have been distributed to the Partners under this Agreement.

                                   ARTICLE VI
                 REPRESENTATIONS AND WARRANTIES OF THE PARTNERS

       6.1    In General. As of the date hereof, each of the Partners hereby
makes each of the representations and warranties applicable to such Partner as
set forth in Section 6.2 hereof, and such warranties and representations shall
survive the execution of this Agreement.

       6.2    Representations and Warranties. Each Partner hereby represents and
warrants that:

              (a)    Due Incorporation or Formation; Authorization of Agreement.
If such Partner is a limited liability company, corporation or a partnership, it
is duly organized or duly formed, validly existing, and in good standing under
the laws of the jurisdiction of its incorporation or formation and has the
company, corporate or partnership power and authority to own its property and
carry on its business as owned and carried on at the date hereof and as
contemplated hereby. Such Partner is duly licensed or qualified to do business
and in good standing in each of the jurisdictions in which the failure to be so
licensed or qualified would have a Material Adverse Effect on its financial
condition or its ability to perform its obligations hereunder. Such Partner has
the company, corporate, or partnership power and authority to execute and
deliver this Agreement and to perform its obligations hereunder and the
execution, delivery, and performance of this Agreement has been duly authorized
by all necessary company, corporate or partnership action. This Agreement
constitutes the legal, valid, and binding obligation of such Partner subject to
applicable bankruptcy and similar laws affecting creditors' rights generally.

              (b)    No Conflict With Restrictions, No Default. Neither the
execution, delivery, and performance of this Agreement nor the consummation by
such Partner of the transactions contemplated hereby (i) will conflict with,
violate, or result in a breach of any of the terms, conditions, or provisions of
any law, regulation, order, writ, injunction, decree, determination, or award of
any court, any governmental department, board, agency, or instrumentality,
domestic or foreign, or any arbitrator, applicable to such Partner or any of its
Affiliates, (ii) will conflict with, violate, result in a breach of, or
constitute a default under any of the terms, conditions, or provisions of the
articles of incorporation, certificate of formation, bylaws, limited liability
company agreement, or partnership agreement of such Partner or any of its
Affiliates, if such Partner is a limited liability company, corporation or
partnership, or of any material agreement or instrument to which such Partner or
any of its Affiliates is a party or by which such Partner or any of its
Affiliates is or may be bound or to which any of its material properties or
assets is subject, (iii) will conflict with, violate, result in a breach of,
constitute a default under (whether with notice or lapse of time or both),
accelerate or permit the acceleration of the performance required by, give to
others any material interests or rights, or require any consent, authorization,
or approval under any indenture, mortgage, lease agreement, or instrument to
which such Partner or any of its Affiliates is a party or by which such Partner
or any of its Affiliates is or may be bound, or (iv) will result in the creation
or imposition of any lien upon any of the material properties or assets of such
Partner or any of its Affiliates.

              (c)    Governmental Authorizations. Any registration, declaration
or filing with or consent, approval, license, permit or other authorization or
order by, any governmental or

                                       18

<PAGE>

regulatory authority, domestic or foreign, that is required in connection with
the valid execution, delivery, acceptance, and performance by such Partner under
this Agreement or the consummation by such Partner of any transaction
contemplated hereby has been completed, made, or obtained on or before the
effective date of this Agreement.

              (d)    Litigation. There are no actions, suits, proceedings, or
investigations pending or, to the knowledge of such Partner or any of its
Affiliates, threatened against such Partner or any of its Affiliates or
affecting any of their properties, assets, or businesses in any court or before
or by any governmental department, board, agency, or instrumentality, domestic
or foreign, or any arbitrator which could (or, in the case of an investigation
could lead to any action, suit, or proceeding, which could) reasonably be
expected to materially impair such Partner's ability to perform its obligations
under this Agreement or to have a Material Adverse Effect on the consolidated
financial condition of such Partner; and such Partner or any of its Affiliates
has not received any currently effective notice of any default, and such Partner
or any of its Affiliates is not in default, under any applicable order, writ,
injunction, decree, permit, determination, or award of any court, any
governmental department, board, agency, or instrumentality, domestic or foreign,
or any arbitrator which could reasonably be expected to materially impair such
Partner's ability to perform its obligations under this Agreement or to have a
Material Adverse Effect on the consolidated financial condition of such Partner.

              (e)    Investigation. Such Partner is acquiring its Interest in
the Partnership based upon its own investigation, and the exercise by such
Partner of its rights and the performance of its obligations under this
Agreement will be based upon its own investigation, analysis, and expertise.
Such Partner's acquisition of its Interest in the Partnership is being made for
its own account for investment, and not with a view to the sale or distribution
thereof.

              (f)    Title. Subject to certain disclosed title exceptions, as
disclosed in writing as of the Effective Date, with respect to the real property
contributed to the Partnership by BPU as set forth in the title policy, each
Partner has good and marketable title to, and sole possession and control of,
such Partner's assets contributed to the Partnership as described on Exhibit B
and Exhibit C respectively, free and clear of all liens, charges, pledges,
claims, security interests or other encumbrances. With respect to contracts or
similar arrangements which constitute part of the Partner's assets:

                     (i)    such contributing Partner performed all of its
obligations and is not in default or alleged to be in default thereunder,

                     (ii)   there exists no event, condition or occurrence
which, after notice or lapse of time or both, would constitute such a default,

                     (iii)  the transfer or assignment to the Partnership of
such contract or arrangement will not require the consent of any parties thereto
or constitute an event permitting termination thereof.

              (g)    Investment Representations.

                     (i)    The Interest in the Partnership subscribed for
hereby are being acquired by such Partner for such Partner's own account and for
investment purposes only and not with a view to any resale or distribution
thereof, in whole or in part, to others, and such Partner is not participating,
directly or indirectly, in a distribution of such Interests and will not take,
or cause to be taken, any action that would cause such Partner to be deemed an

                                       19

<PAGE>

"underwriter" of such Interests as defined in Section 2(11) of the Securities
Act of 1933, as amended.

                     (ii)   Such Partner has had access to all materials, books,
records, documents, and information relating to the Partnership and has been
able to verify the accuracy of, and to supplement, the information contained
therein.

                     (iii)  Such Partner has had an opportunity to ask questions
of, and receive satisfactory answers from, representatives of the Partnership
concerning the terms and conditions pursuant to which the offering of Interests
is being made and all material aspects of the Partnership and its proposed
business, and any request for such information has been fully complied with to
the extent the Partnership possesses such information or can acquire it without
unreasonable effort or expense.

                     (iv)   Such Partner is an "accredited investor" within the
meaning of Rule 501 of the Securities Act of 1933, as amended.

                     (v)    Such Partner is an investor who has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of an investment in the Partnership based upon (i) the
information furnished by the Partnership; (ii) such Partner's personal knowledge
of the business and affairs of the Partnership; (iii) the records, files, and
plans of the Partnership to all of such Partner has had full access; (iv) such
additional information as such Partner may have requested and has received from
the Partnership; and (v) the independent inquiries and investigations undertaken
by such Partner.

                     (vi)   No Person has made any direct or indirect
representation or warranty of any kind to such Partner with respect to the
economic return which may accrue to such Partner. Such Partner has consulted
with his, her or its own advisors with respect to an investment in the
Partnership.

                     (vii)  All information, representations, and warranties
contained herein or otherwise given or made to the Partnership by such Partner
in any other written statement or document delivered in connection with the
transactions contemplated hereby are correct and complete as of the date of this
Agreement and may be relied upon by the Partnership, and, if there should be any
material change in such information prior to such Partner's execution of this
Agreement, such Partner will immediately furnish such revised or corrected
information to the Partnership.

                                   ARTICLE VII
                       RIGHTS AND OBLIGATIONS OF PARTNERS

       7.1    Limited Liability. No Limited Partner shall be personally liable
for any debts, liabilities, or obligations of the Partnership; provided that
each Partner shall be responsible (i) for the making of any capital
contributions required to be made to the Partnership by such Partner pursuant to
the terms hereof and (ii) for the amount of any distribution made to such
Partner that must be returned to the Partnership pursuant to the terms hereof or
the Act.

       7.2    Liability of a Partner to the Partnership. When a Partner has
received a distribution made by the Partnership in violation of this Agreement
or the Act, the Partner is liable to the Partnership for a period of three (3)
years after such a prohibited distribution for the amount of the distribution.

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<PAGE>

       7.3    Exculpation. Unless expressly agreed to in writing by such Person,
no shareholder, general or limited partner, member or holder of any equity
interest in any Partner or manager, officer, director or employee of any of the
foregoing, shall be personally liable for the performance of any such Partner's
obligations under this Agreement, but the foregoing shall not relieve any
shareholder, partner, member, holder of an equity interest, manager, officer,
director or employee of any Partner of its obligations to such Partner.

       7.4    Participation in Management. No Limited Partner, as such, shall
take any part in the management and control of the Partnership nor shall any
Limited Partner, by reason of its status as such, have any right to transact any
business for the Partnership or any authority or power to sign for or bind the
Partnership. Notwithstanding the foregoing, Limited Partners shall have the
right to approve or disapprove or otherwise consent or withhold consent with
respect to such matters as are specified in this Agreement or the Act.

       7.5    Survival of Obligations. Dissolution of the Partnership shall not
release any party from any liability which at the time of dissolution or
termination has already accrued to any party, nor affect in any way the survival
of the rights, duties, and obligations of any party provided for in Articles VI,
VII, and IX of this Agreement.

                                  ARTICLE VIII
                              MEETINGS OF PARTNERS

       8.1    Place of Meetings and Meetings by Telephone. Meetings of Partners
shall be held at the offices of the General Partner or at such other place
within the continental United States designated by the General Partner unless
conducted by telephone conference or similar communications equipment in which
the physical presence of a Partner is not necessary. Any meeting of the Partners
may be held by telephone conference or similar communications equipment so long
as all Partners participating in the meeting can hear one another, and all
Partners participating by telephone or similar communications equipment shall be
deemed to be present in person at the meeting. Each Limited Partner may
participate in any meeting by telephone conference.

       8.2    Call of Meetings. Meetings of the Partners may be called at any
time by any Partner for the purpose of taking action upon any matter requiring
the vote or authority of the Partners as provided in this Agreement or upon any
other matter as to which such vote or authority is deemed by any Partner to be
necessary or desirable. In any event, meetings of the Partners shall not be more
frequent than once per month.

       8.3    Notice of Meetings of Partners. All notices of meetings of
Partners shall be sent or otherwise given to all Partners in accordance with
Section 8.4 not less than three (3) nor more than ninety (90) days before the
date of the meeting. The notice shall specify (i) the place, date, and hour of
the meeting, and (ii) the general nature of the business to be transacted.

       8.4    Manner of Giving Notice. Notice of any meeting of Partners shall
be given personally or by telephone to each Partner or sent by first class mail,
by telecopy (or similar electronic means), or by a nationally recognized
overnight courier, charges prepaid, addressed to the Partner at the address of
that Partner appearing on the books of the Partnership or given by the Partner
to the Partnership for the purpose of notice. Notice shall be deemed to have
been given at the time when deposited in the mail or at the time when deposited
with a nationally recognized overnight courier, or when sent by facsimile (or
similar electronic means).

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<PAGE>

       8.5    Adjourned Meeting; Notice. Any meeting of Partners, whether or not
a quorum is present, may be adjourned from time to time by the vote of the
Majority of the Percentage Interests represented at that meeting, either in
person or by proxy. When any meeting of Partners is adjourned to another time or
place, notice need not be given of the adjourned meeting, unless a new record
date of the adjourned meeting is fixed or unless the adjournment is for more
than sixty (60) days from the date set for the original meeting, in which case
the General Partner shall set a new record date and shall give notice in
accordance with the provisions of Sections 8.3 and 8.4. At any adjourned
meeting, the Partnership may transact any business that might have been
transacted at the original meeting.

       8.6    Quorum; Voting. At any meeting of the Partners, a Majority in
Interest of the Partners, present in person or by proxy, shall constitute a
quorum for all purposes, unless or except to the extent that the presence of
Partners holding a higher aggregate Percentage Interest is required by the
Agreement or applicable law.

       8.7    Waiver of Notice by Consent of Absent Partners. The transactions
of a meeting of Partners, however called and noticed and wherever held, shall be
as valid as though taken at a meeting duly held after regular call and notice if
a quorum is present either in person or by proxy and if either before or after
the meeting, each Person entitled to vote who was not present in person or by
proxy signs a written waiver of notice or a consent to a holding of the meeting
or an approval of the minutes. Any waiver of notice or consent shall specify
either the business to be transacted or the purpose of any meeting of Partners.
Attendance by a Person at a meeting shall also constitute a waiver of notice of
that meeting, except when the Person objects at the beginning of the meeting to
the transaction of any business because the meeting is not lawfully called or
convened and except that attendance at a meeting is not a waiver of any right to
object to the consideration of matters not included in the notice of the meeting
if that objection is expressly made at the beginning of the meeting.

       8.8    Partner Action by Written Consent Without a Meeting. Except as
provided in this Agreement, any action that may be taken at any meeting of
Partners may be taken without a meeting if a consent in writing setting forth
the action so taken is signed by a Majority in Interest (or Partners holding
such higher aggregate Percentage Interest as is required to authorize or take
such action under the terms of this Agreement or applicable law) at least thirty
(30) days prior to such action. Any such written consent may be executed and
given by facsimile or similar electronic means. Such consents shall be filed
with the Partnership and shall be maintained in the Partnership's records.

       8.9    Record Date for Partner Notice, Voting, and Giving Consents. For
purposes of determining the Partners entitled to vote or act at any meeting or
adjournment thereof, the General Partner may fix in advance a record date which
shall not be greater than ninety (90) days nor fewer than five (5) days before
the date of any such meeting. If the General Partner does not so fix a record
date, the record date for determining Partners entitled to notice of or to vote
at a meeting of Partners shall be at the close of business on the business day
immediately preceding the day on which notice is given, or if notice is waived,
at the close of business on the business day next preceding the day on which the
meeting is held.

              (a)    The record date for determining Partners entitled to give
consent to action in writing without a meeting, (i) when no prior action of the
General Partner has been taken, shall be the day on which the first written
consent is given or (ii) when prior action of the General Partner has been
taken, shall be (x) such date as determined for that purpose by the General
Partner, which record date shall not precede the date upon which the resolution
fixing it is

                                       22

<PAGE>

adopted by the General Partner and shall not be more than twenty (20) days after
the date of such resolution or (y) if no record date is fixed by the General
Partner the record date shall be the close of business on the day on which the
General Partner adopts the resolution relating to that action.

              (b)    Only Partners of record on the record date as herein
determined shall have any right to vote or to act at any meeting or give consent
to any action relating to such record date, provided that no Partner who
transfers all or part of such Partner's Interest after a record date (and no
transferee of such Interest) shall have the right to vote or act with respect to
the transferred Interest as regards the matter for which the record date was
set.

       8.10   Proxies. Every Partner entitled to vote or act on any matter at a
meeting of Partners shall have the right to do so either in person or by proxy,
provided that an instrument authorizing such a proxy to act is executed by the
Partner in writing and dated not more than eleven (11) months before the
meeting, unless the instrument specifically provides for a longer period. A
proxy shall be deemed executed by a Partner if the Partner's name is placed on
the proxy (whether by manual signature, typewriting, telegraphic transmission,
or otherwise) by the Partner or the Partner's attorney-in-fact. A valid proxy
that does not state that it is irrevocable shall continue in full force and
effect unless (i) revoked by the Person executing it before the vote pursuant to
that proxy by a writing delivered to the Partnership stating that the proxy is
revoked, by a subsequent proxy executed by or attendance at the meeting and
voting in person by the Person executing that proxy or (ii) written notice of
the death or incapacity of the maker of that proxy is received by the
Partnership before the vote pursuant to that proxy is counted. A proxy
purporting to be executed by or on behalf of a Partner shall be deemed valid
unless challenged at or prior to its exercise and the burden of proving
invalidity shall rest on the challenger.

                                   ARTICLE IX
                           INDEMNIFICATION OF PARTNERS

       9.1    General. The Partnership, its receiver, or its trustee (in the
case of its receiver or trustee, to the extent of the Partnership Assets) shall
indemnify, save harmless, and pay all judgments and claims against each Partner
or any managers, members, partners, officers or directors of such Partner
relating to any liability or damage incurred by reason of any act performed or
omitted to be performed by such Partner, manager, member, partner, officer, or
director in connection with the Partnership, including attorneys' fees incurred
by such Partner, manager, member, officer, or director in connection with the
defense of any action based on any such act or omission, which attorneys' fees
may be paid as incurred; provided, however, that the Partnership shall not be
obligated or permitted to indemnify any Partner or any manager, member, partner,
officer, or director of such Partner from or against any judgment, claim, or
damage resulting from any breach of any provision of this Agreement or any
fraud, bad faith, willful misconduct, or gross negligence.

       9.2    Environmental. The Partnership, its receiver, or its trustee (in
the case of its receiver or trustee, to the extent of the Partnership Assets)
shall indemnify and hold harmless, to the maximum extent permitted by law, each
Partner from and against any and all liabilities, sums paid in settlement of
claims, obligations, charges, actions (formal or informal), claims (including,
without limitation, claims for personal injury under any theory or for real or
personal property damage), liens, taxes, administrative proceedings, losses,
damages (including, without limitation, punitive damages), penalties, fines,
court costs, administrative service fees, response and remediation costs,
stabilization costs, encapsulation costs treatment, storage or disposal

                                       23

<PAGE>

costs, groundwater monitoring or environmental study, sampling or monitoring
costs, other causes of action, and any other costs and reasonable expenses
(including, without limitation, reasonable attorneys', experts', and
consultants' fees and disbursements and investigating, laboratory, and data
review fees) imposed upon or incurred by any Partner (whether or not indemnified
against by any other party) arising from and after the date of this Agreement
directly or indirectly out of:

              (a)    the past, present, or future treatment, storage, disposal,
generation, use, transport, movement, presence, release, threatened release,
spill, installation, sale, emission injection, leaching, dumping, escaping, or
seeping of any hazardous substances or material containing or alleged to contain
hazardous substances at or from any past, present, or future properties or
assets of the Partnership; and/or

              (b)    the violation or alleged violation by the Partnership or
any third party of any Environmental Laws with regard to the past, present, or
future ownership, operation, use, or occupying of any Partnership Assets.

       9.3    Limitations.

              (a)    Notwithstanding anything to the contrary in any of Sections
9.1 and 9.2 above, no Partner or any manager, employee, member, officer, or
director of such Partner shall be indemnified from any liabilities incurred as a
result of conduct by the Partner or any manager, employee, member, officer, or
director of such Partner which constitutes any breach of the provisions of this
Agreement, fraud, bad faith, willful misconduct, or gross negligence.

              (b)    Notwithstanding anything to the contrary in any of Sections
9.1 and 9.2 above, in the event that any provision in any of such Sections is
determined to be invalid in whole or in part, such Sections shall be enforced to
the maximum extent permitted by law.

                                    ARTICLE X
                          MANAGEMENT OF THE PARTNERSHIP

       10.1   The General Partner.

              (a)    The General Partner of the Partnership shall be Corpus GP
unless a successor has been appointed pursuant to the provisions of this
Agreement.

              (b)    Subject to the approval rights described herein, the
business and affairs of the Partnership shall be managed exclusively by or under
the direction of the General Partner and the power to act for or to bind the
Partnership shall be vested exclusively in the General Partner, subject to the
General Partner's authority to delegate powers and duties to officers and others
as set forth herein. Subject to obtaining any necessary approvals hereunder, the
General Partner shall have the power and authority to execute and deliver
contracts, instruments, filings, notices, certificates, and other documents of
whatsoever nature on behalf of the Partnership (including without limitation,
the certificate of limited partnership and any amendments thereto and any other
certificates required or permitted to be filed by or on behalf of the
Partnership pursuant to the Act or like law of any other jurisdiction). Except
as otherwise required by applicable law, any such contract, instrument,
certificate, or other document shall require the signature of the General
Partner or the signature of such employee or agent to whom authority has been
delegated by the General Partner.

                                       24

<PAGE>

              (c)    Unless authorized to do so by this Agreement or by the
General Partner of the Partnership, no Limited Partner, agent, or employee of
the Partnership shall have any power or authority to bind the Partnership in any
way, to pledge its credit or to render it liable pecuniarily for any purpose.

              (d)    Notwithstanding the foregoing, for so long as BPU owns an
Interest in the Partnership, it shall have the right to designate (i) the Team
Member and (ii) one Director of Corpus GP.

       10.2   Major Decisions. Notwithstanding the general authority of the
General Partner under Section 10.1, the following matters ("Major Decisions")
shall require the prior written consent of all Limited Partners (except to the
extent (1) a Limited Partner has lost its approval and consent rights pursuant
to Section 3.5 or as a result of the transfer of all of its Interest or (2) a
Limited Partner transfers part of such Partner's Interest, in which case only
the consent of both BPU and Cheniere shall be required pursuant to this Section
10.2 and such Limited Partner's assignee or transferee shall have no right to
consent thereto):

                     (i)    the taking of any Bankruptcy Action;

                     (ii)   the sale of all or substantially all of the
Partnership's Assets;

                     (iii)  the assignment of any of the Partnership Assets in
trust for the benefit of creditors, or the making or filing, or acquiescence in
the making or filing by any other Person, of a petition or other action
requesting the reorganization or liquidation of the Partnership under the
Bankruptcy Laws;

                     (iv)   the merger or consolidation of the Partnership with
any other Person;

                     (v)    any change of the business purpose of the
Partnership or any decision to engage in any activities other than the stated
business purpose of the Partnership as set forth in Section 2.3 hereof;

                     (vi)   the investment of any excess funds of the
Partnership (other than those funds reasonably required for the conduct of the
business of the Partnership or reasonable reserves) in other than short-term
investment-grade securities;

                     (vii)  the redemption, purchase, or repurchase of any
Limited Partner's Interest;

                     (viii) the admission of any other or additional general
partner to the Partnership;

                     (ix)   any action of the General Partner or the Partnership
or entry by the Partnership or the General Partner into any agreement which
would impair or inhibit the ability to return to BPU pursuant to Section 3.10
hereof the real property contributed by BPU to the Partnership;

                     (x)    any and all documentation or agreements necessary or
convenient to effect any Major Decision, including any material amendment to any
existing Financing Plan, documentation, or agreement.

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<PAGE>

       10.3   Resignation. Corpus GP agrees not to resign as the General
Partner.

       10.4   Remuneration of General Partner; Reimbursement of Expenses. The
General Partner shall be reimbursed for its reasonable out of pocket costs in
connection with the Partnership including, without limitation, salaries,
reasonably allocated overhead expenses, compensation and fees paid to
professionals and advisors and travel and lodging expenses incurred by the
General Partner or its Affiliates. The reasonableness of any expenses to be
reimbursed by the Partnership to the General Partner or its Affiliates shall be
determined in good faith in accordance with accepted standards of commercial
reasonability.

       10.5   Limitation on Liability of General Partner; Indemnification.

              (a)    The General Partner of the Partnership shall not have any
liability to the Partnership or the Other Partners for any losses sustained or
liabilities incurred as a result of any act or omission of such General Partner
unless such act or omission constitutes any breach of the terms of this
Agreement, fraud, bad faith, gross negligence, or willful misconduct.

              (b)    The Partnership shall indemnify and hold harmless (i) the
General Partner, (ii) its managers, officers and employees, and (iii) any
officers of the Partnership designated pursuant to Section 10.10 (each, an
"Indemnitee") from and against any and all losses, claims, demands, costs,
damages, liabilities, expenses of any nature (including reasonable attorneys'
fees and disbursements), judgments, fines, settlements, and other amounts
arising from any and all claims, demands, actions, suits, or proceedings, civil,
criminal, administrative, or investigative, in which an Indemnitee may be
involved, or threatened to be involved, as a party or otherwise, arising out of
or incidental to the Partnership or the Project, regardless of whether an
Indemnitee continues to be a General Partner or a manager, officer or employee
of the General Partner at the time any such liability or expense is paid or
incurred, if (i) the Indemnitee acted in good faith and in a manner it or he or
she reasonably believed to be in, or not opposed to, the best interests of the
Partnership, and, with respect to any criminal proceeding, had no reason to
believe his or her conduct was unlawful and (ii) the Indemnitee's conduct did
not constitute a breach of the provisions of this Agreement, fraud, gross
negligence or willful misconduct.

              (c)    Expenses incurred by an Indemnitee in defending any claim,
demand, action, suit, or proceeding subject to this Section 10.5 shall, from
time to time, be advanced by the Partnership prior to the final disposition of
such claim, demand, action, suit, or proceeding, upon receipt by the Partnership
of an undertaking by or on behalf of the Indemnitee to repay such amounts if it
is ultimately determined that such Person is not entitled to be indemnified as
authorized in this Section 10.5. The indemnification provided by this Section
10.5 shall be in addition to any other rights to which an Indemnitee may be
entitled under any agreement, consent of the Partners, as a matter of law or
equity, or otherwise, shall continue as to an Indemnitee who has ceased to serve
in such capacity and shall inure to the benefit of the heirs, successors,
assigns and administrators of the Indemnitee. Subject to the foregoing sentence,
the provisions of this Section 10.5 are for the benefit of the Indemnitees and
shall not be deemed to create any rights for the benefit of any other Persons.

       10.6   No Guarantee of Return by General Partner. The General Partner
does not, in any way, guarantee the return of the Partners' Contributed Equity
or a profit for the Partners from the operations of the Partnership. The General
Partner shall not be responsible to any Partners because of a loss of their
investment in the Partnership or a loss in the operations of

                                       26

<PAGE>

the Partnership. The General Partner shall incur no liability to the Partnership
or to any of the Partners as a result of engaging in any other business or
venture.

       10.7   Other Businesses or Ventures. Each of the Partners, or any
Affiliate, manager, officer, agent, or employee of any Partner, may engage in
and possess any interest in other businesses or ventures of every nature and
description, whether the same are competitive with the Partnership or otherwise,
independently or with other Persons and neither the Partnership nor any of the
Partners shall have any rights, by virtue of this Agreement or otherwise, in and
to such businesses or ventures or the income or profits derived therefrom, or
any rights, duties, or obligations in respect thereof.

       10.8   Affiliate Transactions. The Partners contemplate that the General
Partner may provide certain services to the Partnership, in accordance with the
provisions of this Section 10.8 and that any such services shall be of
comparable quality and expertise, and any expenses incurred by the Partnership
as the result of such services shall be of a comparable level, as if such
services had been provided to the Partnership by an unrelated third party.
Without the express written consent of the Limited Partners, which consent shall
not be unreasonably withheld, the Partnership and the General Partner shall not
(i) enter into any agreement pursuant to which the Partnership purchases goods
and/or services from the General Partner or any Affiliate of the General
Partner, provides goods and/or services to the General Partner or any Affiliate
of the General Partner, pays any fees or reimbursements to the General Partner
or any Affiliate of the General Partner, or (ii) pay or agree to pay to the
General Partner or any Affiliate of the General Partner fees in excess of the
amounts previously approved by the Limited Partners in accordance with this
Section 10.8.

       10.9   Removal of Corpus GP as General Partner.

Corpus GP may be removed as the General Partner of the Partnership as follows:

              (a)    by Cheniere and BPU upon the agreement of both parties; or

              (b)    by any Limited Partner upon the material breach by the
General Partner of any provision of this Agreement, and such breach is not cured
within one hundred twenty (120) days of receiving written notice.

Upon the removal of the General Partner by the Limited Partners for any reason,
the Limited Partners shall appoint a new General Partner by unanimous vote.

       10.10  Officers and Employees.

              (a)    The General Partner may, from time to time, designate one
or more Persons to be officers of the Partnership. Any officers so designated
shall have such authority and perform such duties as the General Partner may,
from time to time, delegate to them. The General Partner may assign titles to
particular officers. Unless the General Partner decides otherwise, if the title
is one commonly used for officers of a business corporation formed under the
General Corporation Law of the State of Delaware, the assignment of such title
shall constitute the delegation to such officer of the authority and duties that
normally are associated with that office, subject to (i) any specific delegation
of authority and duties made to such officer by the General Partner, (ii) all
standards of care and restrictions applicable to the General Partner hereunder,
and (iii) the general direction and control of the General Partner. The officers
shall hold office until their successors shall be duly designated and shall
qualify, until their

                                       27

<PAGE>

death, or until they shall resign or shall have been removed in the manner
hereinafter provided. Any number of offices may be held by the same Person.
Reasonable salaries shall be paid to officers of the Partnership for their
services as officers as determined by the General Partner.

              (b)    Any officer may resign as such at any time. Such
resignation shall be made in writing and shall take effect at the time specified
therein, or if no time be specified, at the time of its receipt by the General
Partner. The acceptance of a resignation shall not be necessary to make it
effective, unless expressly so provided in the resignation. Any officer may be
removed as such, either with or without cause, by the General Partner whenever
in its judgment the best interests of the Partnership will be served thereby;
provided, however, that such removal shall be without prejudice to the contract
rights, if any, of the Person so removed. Any vacancy occurring in any office of
the Partnership may be filled by the General Partner.

              (c)    The General Partner shall be entitled in its reasonable
discretion to hire employees, including officers, as it deems necessary
(including any officers, members or managers of the General Partner) and to pay
such employees as the General Partner deems fit, in its reasonable discretion.

              (d)    No officer of the Partnership shall have any liability to
the Partnership or the Partners for any losses sustained or liabilities incurred
as a result of any act or omission of such officer if (i) the officer acted in
good faith and in a manner he or she reasonably believed to be in the interests
of the Partnership and (ii) the conduct of the officer did not constitute actual
fraud, gross negligence, or willful misconduct.

                                   ARTICLE XI
                                    COVENANTS

       11.1   Covenants of the Partnership and the Partners. The Partnership and
each Partner hereby covenant as follows:

              (a)    Each member of the Partnership and each Partner shall
comply with all of its obligations under this Agreement.

              (b)    Each member of the Partnership and the General Partner
shall at all times remain in compliance with the provisions of Section 11.2
hereof.

              (c)    The Partnership and the General Partner shall keep proper
books of records and accounts in which full, true and correct entries shall be
made of all dealings and transactions in relation to its respective business and
activities.

              (d)    Each other Partner agrees that it shall not file or cause
to be filed any petition or other proceedings by or against the Partnership or
the General Partner that would become the subject of bankruptcy, insolvency or
other similar proceedings or cause any other Bankruptcy Action, nor shall it
consent to or acquiesce in any such filing or other proceedings or Bankruptcy
Action, except in each case a Bankruptcy Action that has been approved by all of
the Partners and by the General Partner pursuant to Section 10.2.

              (e)    The General Partner shall not cause the Partnership to
elect to be taxed as a corporation for federal income tax purposes.

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<PAGE>

              (f)    Each member of the Partnership and each Partner shall act
in good faith and with commercial reasonableness with respect to any action
taken or declined on behalf of or with respect to the Partnership, including,
without limitation, the preparation, negotiation, or execution of any agreement
to which the Partnership or such Partner is a party, and with respect to any
approval or consent granted or withheld as required or permitted pursuant to
this Agreement.

       11.2   Covenants of the Partnership and the General Partner. Each of the
Partnership and the General Partner covenant that:

              (a)    The Partnership and the General Partner each shall
preserve, renew and keep in full force and effect its existence (except, in the
case of the Partnership, in connection with a dissolution required by this
Agreement) and shall take all reasonable action to maintain all material rights,
privileges and franchises necessary or desirable in the normal conduct of its
business, and shall comply with all Requirements of Law.

              (b)    Each of the Partnership and the General Partner shall
continue to engage in business of the same general type as now conducted by it
and preserve, renew and keep in full force and effect their partnership or
corporate existence, as the case may be, and take all reasonable action to
maintain all material rights, privileges and franchises necessary or desirable
in the normal conduct of its business; comply with all Requirements of Law
except to the extent that failure to comply therewith could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect.

              (c)    It will (i) maintain and prepare financial reports,
financial statements, books and records and bank accounts separate from those of
its Affiliates, any constituent party and any other Person and maintain its
books, records, resolutions and agreements as official records, (ii) will not
permit any Affiliate or constituent party independent access to its bank
accounts, and (iii) unless otherwise required under the I.R.C., will file its
own tax returns.

              (d)    It will not commingle the funds and other assets of the
Partnership with those of any Affiliate or constituent party, or any other
Person, and shall hold its assets in its own name.

              (e)    It shall conduct its own business in its own name.

              (f)    It is and will remain solvent and shall pay its debts and
liabilities (including employment and overhead expenses) from its assets as the
same shall become due.

              (g)    It has done or caused to be done and shall do all things
necessary to observe partnership or corporate formalities, as applicable, and
preserve its existence, and it shall not, nor will it permit any constituent
party to, amend, modify or otherwise change the certificate of limited
partnership, this Agreement, the certificate of incorporation or bylaws, or the
partnership agreement or other organizational documents of the Partnership or
the General Partner, as applicable, or such constituent party in a manner
contrary to the provisions of this Section 12.2.

              (h)    It shall pay the salaries of its own employees and maintain
a sufficient number of employees in light of its contemplated business
operations.

              (i)    It shall compensate each of its consultants and agents from
its own funds for services provided to it and pay from its own assets all
obligations of any kind incurred.

                                       29

<PAGE>

              (j)    It does not and shall not guarantee, become obligated for,
or hold itself or its credit out to be responsible for, the debts or obligations
of any other Person or the decisions or actions respecting the daily business or
affairs of any other Person.

              (k)    It shall not cause or permit the Partnership to acquire
obligations or securities of any Affiliate or any of the Partners. It shall not
buy or hold any evidence of indebtedness issued by any other Person, other than
cash and investment-grade securities.

              (l)    It will allocate fairly and reasonably the cost of (i) any
overhead for any office space shared with any Partner or with any Affiliate of
any Partner, and (ii) any services (such as asset management, legal and
accounting) that are provided jointly to the Partnership and one or more
Affiliates.

              (m)    It will be, and at all times will hold itself out to the
public as, a legal entity separate and distinct from any other Person. In the
event that the Partnership or the General Partner knows of any misunderstanding
regarding the separate identity of the Partnership or the General Partner, the
Partnership or the General Partner shall correct such misunderstanding.

              (n)    It shall not identify itself or any of its Affiliates as a
division or part of any other Person.

              (o)    It will maintain adequate capital for the normal
obligations reasonably foreseeable in a business of its size and character and
in light of its contemplated business operations.

              (p)    It has and shall maintain its assets in such a manner that
it will not be costly or difficult to segregate, ascertain or identify its
individual assets from those of any Affiliate or constituent party, or any other
Person.

              (q)    The General Partner and the Partnership shall proceed with
the development and completion of the Project in a timely and expeditious manner
and will use good faith, commercially reasonable efforts to obtain Project
Approval.

              (r)    The General Partner shall market capacity in the Project in
a manner that it deems reasonable. To the extent that the General Partner offers
such capacity to the Limited Partners, it shall do so pro rata based on their
Percentage Interest and at similar terms and conditions.

              (s)    It shall not take any action or enter into any agreement
which would be detrimental to the best interests of the Partnership or which
would make it impossible to carry out the business of the Partnership.

              (t)    The General Partner shall not take any action or enter into
any transaction or agreement which might be viewed at the time of such action,
transaction, or agreement as trading against or contrary to the best interests
of the Partnership.

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<PAGE>

                                   ARTICLE XII
                               RECORDS AND REPORTS

       12.1   Maintenance and Inspection of Partner Register. The Partnership
shall maintain at its principal place of business a record of its Partners,
giving the names and addresses of all Partners and the Percentage Interest held
by each Partner. Subject to such reasonable standards (including standards
governing what information and documents are to be furnished and at whose
expense) as may be established by the General Partner from time to time, each
Partner has the right to obtain from the Partnership from time to time, upon
reasonable demand for any purpose reasonably related to the Partner's interest
as a Partner of the Partnership, a record of the Partnership's Partners.

       12.2   Maintenance and Inspection of Partnership Agreement. The
Partnership shall keep at its principal place of business the original or a copy
of this Agreement as amended to date, which shall be open to inspection by the
Partners at all reasonable times during office hours.

       12.3   Maintenance and Inspection of Other Records. The accounting books
and records, minutes of proceedings of the Partners and the General Partner and
any committees or delegates of the General Partner, and all other information
pertaining to the Partnership that is required to be made available to the
Partners under the Act shall be kept at such place or places designated by the
General Partner or in the absence of such designation, at the principal place of
business of the Partnership. The minutes shall be kept in written form and the
accounting books and records and other information shall be kept either in
written form or in any other form capable of being converted into written form.
The books of account and records of the Partnership shall be maintained in
accordance with GAAP consistently applied during the term of the Partnership,
wherein all transactions, matters, and things relating to the business and
properties of the Partnership shall be currently entered. Minutes, accounting
books and records, and all other Partnership information, records, documents,
and agreements shall be open to inspection upon the written demand of any
Partner at any reasonable time during usual business hours for a purpose
reasonably related to the Partner's interests as a Partner. Any such inspection
shall be made in person or by in agent or attorney and shall include the right
to copy and make extracts at the expense of the Partnership.

                                  ARTICLE XIII
                        BOOKS, FINANCIALS AND TAX MATTERS

       13.1   Books and Records. The Partnership shall maintain at its principal
place of business books of account that accurately record all items of income
and expenditure relating to the business of the Partnership and that accurately
and completely disclose the results of the operations of the Partnership. Such
books of account shall be maintained according to GAAP consistently applied and
on the basis of the fiscal year. Each Partner shall have the right to inspect
and copy, at the Partnership expense, the Partnership's books and records at any
time during normal business hours without notice to any other Partner. A general
accounting and audit shall be taken by the Partnership Accountant for each
fiscal year, at the expense of the Partnership. The audit shall be conducted in
accordance with generally accepted auditing standards.

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<PAGE>

       13.2   Financial Reports.

              (a)    Subject to the provisions of Sections 3.4 and 3.6 hereof,
the Partnership will furnish to the Partners (i) within thirty (30) days after
the close of each calendar quarter quarterly unaudited financial statements of
this Partnership, (ii) within ninety (90) days after the close of each calendar
year, audited annual financial statements of this Partnership, and (iii)
beginning in 2003, no fewer than sixty (60) days prior to the end of each fiscal
year of the Partnership, an annual budget for the following year of the
Partnership, supplemented by updates to such budgets as necessary to provide
reasonably current and accurate information, which budgets shall be consistent
with any Financing Plan prepared, submitted, or approved in accordance with
Section 3.6 hereof; provided, however, that in the event any Partner becomes
subject to more restrictive filing requirements, including any rules or
regulations adopted by the Securities and Exchange Commission, the Partnership
will furnish the financial statements at least fifteen (15) days prior to the
date of such Partner's required filings.

              (b)    In addition to the foregoing, during the Construction
Period, the General Partner shall provide to the Limited Partners, at least
monthly, reports detailing the status of the Project and a comparison of actual
results versus projected results, and will include the Limited Partners, either
in person or telephonically in accordance with Article VIII hereof, in all
material meetings regarding the status and progress of the Project.

       13.3   Tax Returns. The General Partner shall cause the Partnership
Accountant to prepare all income tax and other tax returns of the Partnership
which shall be filed by the Partnership Accountant with the appropriate taxing
authority. The General Partner shall furnish to each Partner a copy of all such
filed returns together with all schedules thereto and such other information
which each Partner may request in connection with such Partner's own tax
affairs. All such returns, schedules and information shall be provided to the
Partners at the expense of the Partnership.

       13.4   Tax Elections. The General Partner may elect to cause or require
the Partnership to make the election provided for in I.R.C. Section 754 for the
fiscal year that includes the date hereof and maintain a record of the
adjustments to basis of Partnership Assets resulting from that election. Such
election may be made on the federal and, if applicable, the state and local
income tax returns for such fiscal year. All costs incurred by the Partnership
in connection with such election and the maintenance of such records shall be an
expense of the Partnership.

       13.5   Tax Matters Partner. The General Partner is hereby designated the
Tax Matters Partner (as defined in the I.R.C.) on behalf of the Partnership.

              (a)    Without the unanimous consent of the Partners, the Tax
Matters Partner shall have no right to extend the statute of limitations for
assessing or computing any tax liability against the Partnership or the amount
of any Partnership tax item.

              (b)    The Tax Matters Partner may file a petition for
readjustment of any Partnership tax item (in accordance with I.R.C. Section
6226(a)) in the United States Tax Court if the Partners unanimously agree to
file such petition.

              (c)    The Tax Matters Partner shall, within ten (10) business
days of receipt thereof, forward to each Partner a photocopy of any
correspondence relating to the Partnership received from the Internal Revenue
Service. The Tax Matters Partner shall, within ten (10)

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<PAGE>

business days thereof, advise each Partner in writing of the substance of any
conversation held with any representative of the Internal Revenue Service.

              (d)    Any reasonable costs incurred by the Tax Matters Partner
for retaining accountants and/or lawyers on behalf of the Partnership in
connection with any Internal Revenue Service audit of the Partnership shall be
expenses of the Partnership. Any accountants and/or lawyers retained by the
Partnership in connection with any Internal Revenue Service audit of the
Partnership shall be selected by the Tax Matters Partner.

       13.6   The Partnership Accountant. The Partnership shall retain as the
regular accountant and auditor for the Partnership ("Partnership Accountant") a
nationally recognized independent accounting firm designated by the General
Partner. The fees and expenses of the Partnership Accountant shall be a
Partnership expense.

                                   ARTICLE XIV
                          NONDISCLOSURE OF INFORMATION

       14.1   Confidentiality.

              (a)    Subject to Section 14.1 (b), all disclosures of trade
secrets, know-how, financial information or other confidential information made
by the Partnership to any Partner or made by any Partner under or in connection
with this Agreement, shall be received and maintained in confidence by the
recipient during the term hereof and for three (3) years after dissolution of
the Partnership and each Partner shall treat all such trade secrets, know-how,
financial information or other confidential information as confidential except:

                     (i)    as to the Persons directly responsible for the
performance of the obligations of this Agreement and for the effective operation
of the Partnership;

                     (ii)   as to the professional advisors of the Partners and
the Partnership;

                     (iii)  as to such disclosures to customers of the
Partnership as are necessary for the effective carrying on of business by the
Partnership;

                     (iv)   as to such information as is required by law to be
disclosed by the Partners or the Partnership, including, without limitation,
disclosures to comply with Securities and Exchange Commission filing
requirements, after providing Corpus GP prior written notice of the form and
content of such disclosure and providing Corpus GP a reasonable opportunity to
comment on such disclosure; and

                     (v)    as to such information as is or may fall within the
public domain otherwise than in violation of the provisions of this Section
14.1.

              (b)    Each Partner shall have reasonable access to confidential
information, know-how and work product (including third-party reports and
agreements) produced in connection with the Project, and shall be entitled to
use such confidential information, with the consent of the General Partner,
which consent shall not be unreasonably withheld, for any purpose that is not
directly competitive with the Partnership. Further, the General Partner and its
Affiliates are entitled to use any confidential information that is directly
related to the Project, including any know-how and third-party reports,
documents, agreements or work products, in connection with

                                       33

<PAGE>

the development or operation of any other business or venture, including the
funding thereof; provided, however, that to the extent that any Partner receives
any information of a confidential nature pertaining to any other Partner but not
directly related to the Project, the Partner receiving such information shall be
prohibited from revealing, disclosing, or employing such information without the
prior written consent of the Partner with whom such information is concerned.
The General Partner and its Affiliates may hire any third-party consultant,
advisor, counsel or other service provider employed by the Partnership and such
Party may use any work-product or know-how developed on behalf of the
Partnership in providing services to such Partner or its Affiliates.

       14.2   Duty of Care. Each Partner will take such steps as lie within its
power to assure that all of its employees, agents, officers, directors, and
managers, and the employees, agents, officers, directors, and managers of the
Partnership to whom confidential information is disclosed take all proper
precautions to prevent the unauthorized disclosure and use of the confidential
information referenced in Section 14.1.

                                   ARTICLE XV
                                 TRANSFERABILITY

       15.1   Transferability of Interests.

             (a)     Subject to the provisions of Section 15.4 hereof and with
the prior written consent of the General Partner, which consent shall not be
unreasonably withheld or delayed unless the General Partner reasonably
determines that such transfer would have a Material Adverse Effect on the
Partnership, each of the Limited Partners may transfer all or part of its
Interest in the Partnership (including the transfer of any rights to receive or
share in profits, losses, income, distributions or the return of contributions);
provided, that (1) such transferring Limited Partner gives written notice
(including the name and address of the proposed purchaser, transferee, or
assignee and the date of such transfer) to the Partnership and the
non-transferring Partners, (2) such transferring Limited Partner shall not
transfer all or any part of any Interest to any person or entity that competes
directly with any other Partner unless waived by that Partner, (3) prior to any
transfer, such transferring Limited Partner has provided to the Partnership
assurance reasonably satisfactory to the General Partner that the transferring
Limited Partner and the purchaser of such Limited Partner's Interest have
complied with all applicable state and federal securities laws, and (4) such
transferring Limited Partner shall not transfer a partial Interest in the
Partnership constituting less than ten percent (10%) of the then-outstanding
interests in the Partnership.

              (b)    Notwithstanding anything to the contrary contained herein
or under the Act, except as provided in Section 3.10, no Partner shall have the
right to resign from the Partnership.

       15.2   Option to Purchase. Should Cheniere desire to sell the entirety of
its Interest in the Project to a non-Affiliated third party ("Non Affiliated
Third Party"), and said Non Affiliated Third Party desires to purchase the BPU
Interest, then Cheniere shall have the option to purchase BPU's Interest for the
fair market value of the Interest. The fair market value of BPU's Interest shall
be equal to the per-one-percent price being paid to Cheniere by the Non
Affiliated Third Party for Cheniere's Interest being sold multiplied by BPU's
Interest percentage at the time of such sale. Further, in the event that BPU (or
its permitted transferees or assigns), proposes to or does attempt to transfer,
assign, distribute, pledge, hypothecate, encumber or otherwise dispose of
("Transfer") all or any part of its Interest ("Offered Interest") to any other

                                       34

<PAGE>

Person, the Offered Interest shall be for a purchase price payable entirely in
cash and shall first be offered for sale to Cheniere in accordance with this
Section 15.2. BPU shall deliver a notice to Cheniere (the "Offer Notice")
containing a description of the proposed Transfer and the terms thereof, and
such Offer Notice shall contain an offer to sell to Cheniere the Offered
Interest. Such offer to sell shall contain the same terms and conditions and
shall be for the same consideration as offered to such other Person. For a
period of thirty (30) days after such Offer Notice is received by Cheniere,
Cheniere may, by notice to BPU accept the offer to acquire such Offered
Interest. In the event that Cheniere does not agree to purchase the Offered
Interest, BPU shall have the right to proceed with the sale or transfer on the
terms specified in the Offer Notice; provided, however, that if BPU does not
consummate such sale or transfer within ninety (90) days after the date of the
Offer Notice or proposes to consummate the transaction on terms that differ in
any material respect from the terms set forth in the Offer Notice, the option
contemplated by this Section 15.2 shall again be applicable..

       15.3   BPU Right to Sell. Notwithstanding any other provision herein
contained, in the event of any Change of Control of the Partnership or of the
General Partner, BPU shall have the right to sell to the Partnership all, but
not less than all of its Interest (the "BPU Put Option"). The BPU Put Option
shall be exercised by written notification to the then General Partner, if at
all, within ninety (90) days following the later of (a) the occurrence of a
Change of Control of the Partnership or of the General Partner, or (b) the date
upon which BPU discovers or is informed of any Change of Control of the
Partnership or of the General Partner. In the event that BPU exercises the BPU
Put Option, the Partnership shall be required to purchase all, but not less than
all, of the Interest owned by BPU for the Fair Value of such BPU's Interest (as
hereinafter defined). In order to determine the Fair Value of BPU's Interest,
the Partnership shall have conducted by a qualified appraiser, at the
Partnership's expense, an appraisal of the fair market value of the Partnership
as a whole (the "First Appraisal"). Within seven (7) days following BPU's
notification by the Partnership of the First Appraisal, BPU shall either (m)
accept the First Appraisal, at which time the First Appraisal shall be deemed to
be the "Accepted Value," or (n) have conducted by a qualified appraiser, at
BPU's expense, an appraisal of the fair market value of the Partnership (the
"Second Appraisal"). If the value reported in the Second Appraisal is within
five percent (5%) of the value reported in the First Appraisal, then the average
of the two (2) values shall be deemed to be the "Accepted Value." If, however,
the value reported in the Second Appraisal differs from the value reported in
the First Appraisal by a factor of greater than five percent (5%), then the
appraisers who performed the First Appraisal and the Second Appraisal shall
appoint a third appraiser to, at the expense of the Partnership, conduct an
appraisal of the fair market value of the partnership (the "Third Appraisal").
If for any reason the appraisers who performed the First Appraisal and the
Second Appraisal are unwilling or unable to appoint a third appraiser, then the
Partnership shall engage the Houston, Texas, office of the American Arbitration
Association to appoint a third appraiser to perform the Third Appraisal. The
value reported in the Third Appraisal, if required, shall be deemed to be the
"Accepted Value of the Partnership. The "Fair Value" of BPU's Interest shall be
equal to the greater of (y) Accepted Value of the Partnership multiplied by
BPU's Percentage Interest without consideration of any minority or other
discount, or (z) the total value of BPU's contributions to the capital of the
Partnership as reported on the financial statements of the Partnership. The
Partnership shall pay to BPU, in complete redemption of BPU's Interest, the Fair
Value of BPU's Interest via cash or other immediately available and verifiable
funds within sixty (60) days following the determination of the Fair Value of
BPU's Interest.

       15.4   BPU Tag-Along Right. In the event that the General Partner or any
Affiliate of the General Partner (each a "Selling Partner") receives a bona fide
good faith written offer from an unrelated third party to purchase all or any
part of its Interest, BPU shall have the option to

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<PAGE>

require such third party to also agree at the same per-one-percent price and
other terms and conditions as set forth in the offer to such Selling Partner to
purchase the same proportion of its Interest. The Selling Partner shall give
prompt notice to BPU of any such bona fide third-party offer, which notice shall
include the proposed per-one-percent purchase price and other terms contained in
the offer. BPU may exercise its rights pursuant to this Section, if at all, with
written notice of such exercise to the Partnership and the Selling Partner
within fifteen (15) days after receipt of the offer notice from the Selling
Partner.

                                   ARTICLE XVI
                              SUBSTITUTED PARTNERS

Any transferee acquiring the Interest of a Partner as permitted under Article XV
shall be deemed admitted as a substituted Partner with respect to the Interest
transferred concurrently with the effectiveness of such transfer (provided that
such transferee, unless already a Partner, shall, as a condition to such
admission, execute a counterpart of this Agreement, agreeing thereby to be bound
by all of the terms and conditions hereof), and such substituted Partner shall
be entitled to all of the rights and benefits under this Agreement of the
transferor of such Interest. No purported transfer of any Interest, or any
portion thereof or Interest therein, in violation of the terms of this Agreement
(including any transfer occurring by operation of law) shall vest the purported
transferee with any rights, powers, or privileges hereunder, and no such
purported transferee shall be deemed for any purposes as a Partner hereunder or
have any right to vote or consent with respect to Partnership matters, to
inspect Partnership records, to maintain derivative proceedings, to maintain any
action for an accounting or to exercise any other rights of a Partner hereunder
or, under the Act.

                                  ARTICLE XVII
                WAIVER OF PARTITION/COVENANT AGAINST RESIGNATION

       17.1   Waiver of Partition. No Partner shall, either directly or
indirectly, take any action to require partition, file a bill for Partnership
accounting or appraisement of the Partnership or of any of its assets or
properties or cause the sale of any Partnership Assets, and notwithstanding any
provisions of applicable law to the contrary, each Partner (and each of his
legal representatives, successors, or assigns) hereby irrevocably waives any and
all rights it may have to maintain any action for partition or to compel any
sale with respect to his Partnership Interest, or with respect to any assets or
properties of the Partnership, except as expressly provided in this Agreement.

       17.2   Covenant Not to Resign or Dissolve. Notwithstanding any provision
of the Act to the contrary, each Partner hereby covenants and agrees that the
Partners have entered into this Agreement based on their mutual expectation that
all Partners will continue as Partners and carry out the duties and obligations
undertaken by them hereunder and that, except as otherwise expressly required or
permitted hereby, each Partner hereby covenants and agrees not to (a) take any
action to file a certificate of dissolution or its equivalent with respect to
itself, (b) voluntarily take any Bankruptcy Action, (c) withdraw or attempt to
withdraw from the Partnership, (d) exercise any power under the Act to dissolve
the Partnership, (e) transfer all or any portion of his Interest in the
Partnership in violation of Article XV, (f) petition for judicial dissolution of
the Partnership, or (g) demand a return of such Partner's contributions or
profits (or a bond or other security for the return of such contributions or
profits) except to the extent provided under this Agreement.

                                       36

<PAGE>

                                  ARTICLE XVIII
                               ADDITIONAL PARTNERS

Subject to the provisions of Section 3.6 hereof, additional Partners may be
admitted to the Partnership only with the approval of all the Limited Partners
and the Contributed Equity and the Percentage Interest of any additional Partner
shall be as determined by the Limited Partners approving the admission (and the
Percentage Interest of all Other Partners shall be adjusted to reflect the
Percentage Interest granted to the additional Partner, pro rata based on
relative Percentage Interests immediately prior to the admission of the
additional Partner). Any additional Partner shall execute a counterpart of this
Agreement, agreeing thereby to be bound by all of the terms and provisions
hereof; provided that prior to or concurrently with the admission of an
additional Partner, the Partners shall adopt such amendments to this Agreement
as they deem appropriate to cause the provisions hereof that contemplate only
three (3) Partners to be appropriately modified to operate in the context of
four (4) or more Partners.

                                   ARTICLE XIX
                                   DISSOLUTION

       19.1   Dissolution.

              (a)    The Partnership shall be dissolved upon the earliest to
occur of the following:

       (1)    all or substantially all of the Partnership Assets have been sold,
       taken in condemnation, or otherwise disposed and reduced to cash;

       (2)    the Partners unanimously elect to dissolve the Partnership;

       (3)    the occurrence of any other event causing a dissolution of the
       Partnership under the Act.

              (b)    Subject to the provisions of Section 3.10 hereof, upon
dissolution of the Partnership the General Partner, or such other Person as is
designated by a Majority of the Partners (such Person being herein referred to
as the "Liquidator") shall proceed to wind up the business and affairs of the
Partnership in accordance with the terms hereof and the requirements of the Act.
A reasonable amount of time shall be allowed for the period of winding-up in
light of prevailing market conditions and so as to avoid undue loss in
connection with any sale of Partnership Assets. This Agreement shall remain in
full force and effect during the period of winding-up.

              (c)    In connection with the winding-up of the Partnership,
before the later to occur at the end of the fiscal year of the Partnership or
the ninetieth day after the liquidation of the Partnership within the meaning of
Section 1.704-1(b)(2)(ii)(g) of the Regulations, the proceeds from the sale of
Partnership Assets shall be distributed as follows:

       (1)    to creditors, including Partners who are creditors in satisfaction
       of liabilities of the Partnership (whether by payment or the making of
       reasonable provision for payment thereof); and

                                       37

<PAGE>

       (2)    thereafter to Partners in accordance with Section 5.2 hereof.

              (d)    If distributions are insufficient to return to any Partner
the full amount of such Partner's Contributed Equity, such Partner shall have no
recourse against any other Partner. No Partner shall have any obligation to
restore, or otherwise pay to the Partnership, any other Partner, or any third
party, the amount of any deficit balance in such Partner's Capital Account upon
dissolution and liquidation. Following the completion of the winding-up of the
affairs of the Partnership and the distribution of the proceeds from the sale of
Partnership Assets, the Partnership shall be deemed terminated and the
Liquidator shall file a certificate of cancellation with the Secretary of State
of the State of Delaware as required by the Act.

       19.2   Deemed Liquidation. If no dissolution event has occurred, but the
Partnership is deemed liquidated for federal income tax purposes within the
meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations, as a result of a
Partnership termination, as defined in I.R.C. Section 708(b)(1)(B), such
termination will be treated in accordance with Section 1.708-1(b)(1)(4) of the
Regulations.

       19.3   Bankruptcy, etc., of a Limited Partner. No event with respect to a
Limited Partner, including the death, withdrawal, termination (in the case of a
Limited Partner that is a partnership), dissolution (in the case of a Limited
Partner that is a corporation), retirement or adjudication as a bankrupt of a
Limited Partner, shall dissolve the Partnership, but the rights of such Limited
Partner to share in the profits and losses of the Partnership and to receive
distributions of the Partnership funds shall, upon the happening of such an
event, pass to the Limited Partner's legal representative, or successors in
interest, as the case may be, subject to this Agreement, and the Partnership
shall continue as a limited partnership. In no event shall such Limited
Partner's legal representative, or successors in interest, become a substitute
Partner except as provided in Article XVI.

                                   ARTICLE XX
                               DISPUTE RESOLUTION

Unless expressly provided otherwise in this Agreement, any and all disputes
arising under the terms of this Agreement ("Arbitrable Dispute") shall be
referred to and resolved through the use of binding arbitration using three (3)
arbitrators, in accordance with the Commercial Arbitration Rules of the American
Arbitration Association, and the Federal Arbitration Act (Title 9 of the United
States Code). If there is any inconsistency between this Article and any of said
statute or rules, the terms of this Article shall control the rights and
obligations of the parties. Arbitration shall be initiated within the applicable
time limits set forth in this Agreement and not thereafter or if no time limit
is given, within the time period allowed by the applicable statute of
limitations. Arbitration shall be initiated by one (1) party ("Claimant")
serving written notice on the other party ("Respondent") that the Claimant
elects to refer the Arbitrable Dispute to binding arbitration and that the
Claimant has appointed an arbitrator who shall be identified in such notice. The
Respondent shall respond to the Claimant within thirty (30) days after receipt
of Claimant's notice, identifying the arbitrator Respondent has appointed. The
two (2) arbitrators so chosen shall select a third arbitrator within thirty (30)
days after the second arbitrator has been appointed. In the event that they are
unable or fail to do so, or if one party fails or refuses to appoint its
party-appointed arbitrator, the Chief Judge of the United States District Court
for the Southern District of Texas shall appoint an arbitrator to satisfy the
duties of the arbitrator not appointed as provided above. Claimant shall pay the
compensation and expenses of the arbitrator named by or for it, and Respondent
shall pay the compensation and expenses of the arbitrator named by or for it.
Claimant and Respondent shall each pay one-half of the

                                       38

<PAGE>

compensation and expenses of the third arbitrator. Unless expressly provided
otherwise in this Agreement, all arbitrators must be neutral parties who have
never been officers, directors or employees of the parties or any of their
Affiliates. The hearing shall be conducted in Houston, Texas, and shall be
commenced within thirty (30) days after the selection of the third arbitrator.
The parties and the arbitrators shall proceed diligently and in good faith in
order that the award shall be made as promptly as possible. The decision of the
arbitrators shall be binding on and non-appealable by the parties. Judgment on
the arbitration award may be entered and enforced in any court having
jurisdiction over the parties or their assets. The arbitrators shall not have
the authority to grant or award indirect, consequential, punitive or exemplary
damages.

                                   ARTICLE XXI
                                  MISCELLANEOUS

       21.1   Amendments. Amendments to this Agreement may be made at any time
by the General Partner and shall be adopted, but shall be effective as an
amendment hereto only upon written approval by Cheniere and BPU (but not their
transferees or assignees).

       21.2   Checks, Drafts, Evidence of Indebtedness. All checks, drafts, or
other orders for payment of money, notes, or other evidence of indebtedness
issued in the name of or payable to the Partnership shall be signed or endorsed
in such manner and by such Person or Persons as shall be designated from time to
time in accordance with the resolution of the General Partner.

       21.3   Notices. All notices and other communications required or
permitted to be given or made under this Agreement shall be given or made in
writing. Such notices shall be delivered by hand delivery, by facsimile (or
similar electronic means) or by a nationally recognized overnight courier, fees
prepaid, addressed as follows:

       If to Corpus GP:                 Corpus Christi LNG - GP
                                        333 Clay St., Suite 3400
                                        Houston, TX 77002
                                        Attn: Charif Souki
                                        Fax: (713) 659-5459

       If to BPU:                       BPU, LLC
                                        c/o Sherwin Alumina, LP
                                        Attn: Peter Bailey
                                        P.O. Box 9911
                                        Corpus Christi, Texas 78469

       With copy to:                    Seyfarth Shaw
                                        Attn: James H. Kaminer, Jr.
                                        1545 Peachtree Street NE
                                        Suite 700
                                        Atlanta, Georgia 30309

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<PAGE>

       If to Cheniere:                  Cheniere LNG, Inc.
                                        333 Clay St., Suite 3400
                                        Houston, TX 77002
                                        Attn: Charif Souki
                                        Fax: (713) 659-5459

              copy to:                  Andrews & Kurth, LLP
                                        600 Travis, Suite 4200
                                        Houston, TX  77002
                                        Attn: Michael Overman
                                        Fax: (713) 220-4285

Any party may make changes, additions or deletions to its address for the
purpose of this Section 21.3 by notice to the other parties given in the manner
set forth above.

       21.4   Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the state of Delaware (without
regard to principles of conflicts of laws).

       21.5   Headings. The Article and Section headings of this Agreement are
for convenience only, do not form a part of this Agreement, and shall not in any
way affect the interpretation hereof.

       21.6   Extension Not a Waiver. No delay or omission in the exercise of
any power, remedy or right herein provided or otherwise available to a Partner
or the Partnership shall impair or affect the right of such Partner or the
Partnership thereafter to exercise the same. Any extension of time or other
indulgence granted to a Partner hereunder shall not otherwise alter or affect
any power, remedy or right of any other Partner or of the Partnership, or the
obligations of the Partner to whom such extension or indulgence is granted.

       21.7   Publicity. No Partner shall issue any press release or otherwise
publicize or disclose the terms of this Agreement or the terms of the Partners'
acquisition of the Interests in the Partnership, without the consent of the
General Partner, except as such disclosure may be made in the course of normal
reporting practices by a Partner to its partners, shareholders, consultants or
members or as otherwise required by law. Provided, however, the General Partner
shall have the right to publicize, advertise and otherwise promote the facility
and its associated services in a manner it reasonably deems desirable.

       21.8   Construction and Amendment. No oral explanation of or oral
information relating to this Agreement offered by either party hereto shall
alter the meaning or interpretation of this Agreement.

       21.9   Further Action. Each Partner agrees to perform all further acts
and execute, acknowledge, and deliver any documents which may be reasonably
necessary, appropriate, or desirable to carry out the provisions of this
Agreement.

       21.10  Variation of Pronouns. All pronouns and any variations thereof
shall be deemed to refer to masculine, feminine, or neuter, singular or plural,
as the identity of the Person or Persons may require.

                                       40

<PAGE>

       21.11  Successors and Assigns. Subject to the restrictions on transfer
set forth in Article XV, this Agreement shall bind and inure to the benefit of
the parties hereto and their respective successors and assigns.

       21.12  Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
shall constitute one and the same agreement.

       21.13  Ambiguities. All of the parties to this Agreement have
participated in the negotiation and drafting hereof. Accordingly, it is
understood and agreed that the general rule that ambiguities are to be construed
against the drafter shall not apply to this Agreement. In the event that any
language of this Agreement is found to be ambiguous, each party shall have an
opportunity, in any legal proceeding, to present evidence as to the actual
intent of the parties with respect to any such ambiguous language.

       21.14  Time of the Essence. Time is of the essence of this Agreement and
each provision hereof.

       21.15  Entire Agreement. The terms and conditions contained herein and in
the associated agreements constitute the entire agreement between the Partners
concerning the subject matter hereof, and shall supersede all previous
communications, either oral or written, between the parties hereto, and no
agreement or understanding varying or extending this Agreement shall be binding
upon either Partner unless in writing, signed by a duly authorized officer or
representative of each Partner.

                     [REST OF PAGE LEFT INTENTIONALLY BLANK]

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<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives as of the day and year first set forth
above.

                               GENERAL PARTNER:

                                  CORPUS CHRISTI LNG-GP, INC.

                                  By:
                                      ------------------------------------------
                                      Name: Charif Souki
                                      Title: President and Chairman of the Board

                               LIMITED PARTNERS:

                                  BPU LNG

                                  By:
                                      ------------------------------------------
                                      Name: Peter Bailey
                                      Title: Chief Executive Officer

                                  CHENIERE LNG, INC.

                                  By:
                                      ------------------------------------------
                                      Name: Charif Souki
                                      Title: President

                                       42

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