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                                                                     EXHIBIT 4.6

                                NATCO GROUP INC.
                            2004 STOCK INCENTIVE PLAN

1. BACKGROUND; PURPOSE OF THE PLAN

      1.1 BACKGROUND AND EFFECT OF THE PLAN. The NATCO Group Inc. 2004 Stock
Incentive Plan (the "Plan") was adopted by the Board of Directors of NATCO Group
Inc., a Delaware corporation (the "Company"), on April 6, 2004, subject to its
approval by the stockholders at the Company's 2004 Annual Meeting of
Stockholders. No Awards may be granted under the Plan prior to its approval by
the stockholders of the Company. If this Plan is not so approved by the
stockholders, then no Awards shall be granted under the Plan.

      1.2 PURPOSE OF THE PLAN. The purpose of the Plan is to provide a means
through which the Company and its Affiliates may attract able persons to serve
as Directors or Consultants or to enter the employ of the Company and its
Affiliates and to provide a means whereby those individuals upon whom the
responsibilities of the successful administration and management of the Company
and its Affiliates rest, and whose present and potential contributions to the
Company and its Affiliates are of importance, can acquire and maintain stock
ownership, thereby strengthening their concern for the welfare of the Company
and its Affiliates. A further purpose of the Plan is to provide such individuals
with additional incentive and reward opportunities designed to enhance the
profitable growth of the Company and its Affiliates. Accordingly, the Plan
provides for granting Incentive Stock Options, options that do not constitute
Incentive Stock Options, Restricted Stock Awards, Performance Awards and Phantom
Stock Awards, or any combination of the foregoing, as is best suited to the
circumstances of the particular employee, Consultant or Director as provided in
this Plan.

2. DEFINITIONS

The following definitions shall be applicable throughout the Plan:

"AFFILATE" means any corporation, partnership, limited liability company,
partnership, association, trust or other organization which, directly or
indirectly, controls, is controlled by, or is under common control with, the
Company. For purposes of the preceding sentence, "control" (including, with
correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any entity or organization, shall mean the
possession, directly or indirectly, of the power (i) to vote more than 50% of
the securities having ordinary voting power for the election of directors of the
controlled entity or organization or (ii) to direct or cause the direction of
the management and policies of the controlled entity or organization, whether
through the ownership of voting securities or by contract or otherwise.

"AWARD" means, individually or collectively, any Option, Restricted Stock Award,
Performance Award or Phantom Stock Award.

"BOARD" means the Board of Directors of the Company.

"CODE" means the Internal Revenue Code of 1986, as amended. Reference in the
Plan to any section of the Code shall be deemed to include any amendments or
successor provisions to such section and any regulations under such section.

"COMMITTEE" means a committee of the Board that is selected as provided in
Paragraph 4.1.

"COMMON STOCK" means the common stock, par value $0.01 per share, of the
Company, or any security into which such Common Stock may be changed by reason
of any transaction or event of the type described in Paragraph 11.

"COMPANY" means NATCO Group Inc., a Delaware corporation.
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"CONSULTANT" means any person who is not an employee or a Director and who is
providing advisory or consulting services to the Company or any Affiliate.

"CORPORATE CHANGE" shall have the meaning assigned to such term in Paragraph
11.3.

"DIRECTOR" means an individual elected to the Board by the stockholders of the
Company or by the Board under applicable corporate law who is serving on the
Board on the date the Plan is adopted by the Board or is elected to the Board
after such date.

An "EMPLOYEE" means any person (including a Director) in an employment
relationship with the Company or any Affiliate.

"FAIR MARKET VALUE" means, as of any specified date, the mean of the high and
low sales prices of the Common Stock reported by (i) the National Market System
or NASDAQ on that date or (ii) if the Common Stock is listed on a national stock
exchange, reported on the stock exchange composite tape on that date (or such
other reporting service approved by the Committee); or, in either case, if no
prices are reported on that date, on the last preceding date on which such
prices of the Common Stock are so reported. If the Common Stock is traded over
the counter at the time a determination of its fair market value is required to
be made under the Plan, its fair market value shall be deemed to be equal to the
average between the reported high and low or closing bid and asked prices of
Common Stock on the most recent date on which Common Stock was publicly traded.
In the event Common Stock is not publicly traded at the time a determination of
its value is required to be made under the Plan, the determination of its fair
market value shall be made by the Committee in such manner as it deems
appropriate.

"INCENTIVE STOCK OPTION" means an incentive stock option within the meaning of
Section 422 of the Code.

"1934 ACT" means the Securities Exchange Act of 1934, as amended.

"OPTION" means an Award granted under Paragraph 7 and includes both Incentive
Stock Options to purchase Common Stock and Options that do not constitute
Incentive Stock Options to purchase Common Stock.

"OPTION AGREEMENT" means a written agreement between the Company and a
Participant with respect to an Option.

"PARTICIPANT" means an employee, Consultant or Director who has been granted an
Award.

"PERFORMANCE AWARD" means an Award granted under Paragraph 9.

"PERFORMANCE AWARD AGREEMENT" means a written agreement between the Company and
a Participant with respect to Performance Awards.

"PHANTOM STOCK AWARD" means an Award granted under Paragraph 10.

"PHANTOM STOCK AWARD AGREEMENT" means a written agreement between the Company
and a Participant with respect to a Phantom Stock Award.

"PLAN" means the NATCO Group Inc. 2004 Stock Incentive Plan, as amended from
time to time.

"RESTRICTED STOCK AGREEMENT" means a written agreement between the Company and a
Participant with respect to a Restricted Stock Award.

"RESTRICTED STOCK AWARD" means an Award granted under Paragraph 8.

"RULE 16b-3" means SEC Rule 16b-3 promulgated under the 1934 Act, as such may be
amended from time to time, and any successor rule, regulation or statute
fulfilling the same or a similar function.

"STOCK APPRECIATION RIGHT" shall have the meaning assigned to such term in
Paragraph 7.4.

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3. DURATION OF THE PLAN

No Awards may be granted under the Plan after 10 years from the date this Plan
is adopted by the Board of Directors. The Plan shall remain in effect until all
Options granted under the Plan have been exercised or expired, all Restricted
Stock Awards granted under the Plan have vested or been forfeited, and all
Performance Awards and Phantom Stock Awards have been satisfied or expired.

4. ADMINISTRATION

      4.1 COMPOSITION OF COMMITTEE. The Plan shall be administered by a
committee of, and appointed by, the Board that shall be comprised solely of two
or more outside Directors (within the meaning of the term "outside directors" as
used in Section 162(m) of the Code and applicable interpretive authority
thereunder and within the meaning of the term "Non-Employee Director" as defined
in Rule 16b-3).

      4.2 POWERS. Subject to the express provisions of the Plan, the Committee
shall have authority, in its discretion, to determine which employees,
Consultants or Directors shall receive an Award, the time or times when such
Award shall be made, the type of Award that shall be made, the number of shares
to be subject to each Option or Restricted Stock Award, the number of shares
subject to or the value of each Performance Award, and the value of each Phantom
Stock Award. In making such determinations, the Committee shall take into
account the nature of the services rendered by the respective employees,
Consultants or Directors, their present and potential contribution to the
Company's success and such other factors as the Committee in its sole discretion
shall deem relevant.

      4.3 ADDITIONAL POWERS. The Committee shall have such additional powers as
are delegated to it by the other provisions of the Plan. Subject to the express
provisions of the Plan, this shall include the power to construe the Plan and
the respective agreements executed hereunder, to prescribe rules and regulations
relating to the Plan, and to determine the terms, restrictions and provisions of
the agreement relating to each Award, including such terms, restrictions and
provisions as shall be requisite in the judgment of the Committee to cause
designated Options to qualify as advisable for administering the Plan. The
Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any agreement relating to an Award in the manner
and to the extent it shall deem expedient to carry it into effect. The
determinations of the Committee on these matters shall be conclusive.

5. SHARES SUBJECT TO THE PLAN; AWARD LIMITS; GRANT OF AWARDS

      5.1 SHARES SUBJECT TO THE PLAN AND AWARD LIMITS. Subject to adjustment in
the same manner as provided in Paragraph 11 with respect to shares of Common
Stock subject to Options then outstanding, the aggregate number of shares of
Common Stock that may be issued under the Plan shall not exceed 600,000 shares.
Shares shall be deemed to have been issued under the Plan only (i) to the extent
actually issued and delivered pursuant to an Award or (ii) to the extent an
Award denominated in shares of Common Stock is settled in cash. To the extent
that an Award lapses or the rights of its holder terminate, any shares of Common
Stock subject to such Award shall again be available for the grant of an Award
under the Plan. Notwithstanding any provision in the Plan to the contrary, the
maximum number of shares of Common Stock that may be subject to Options,
Restricted Stock Awards and Performance Awards denominated in shares of Common
Stock granted to any one individual during any calendar year may not exceed
100,000 shares of Common Stock (subject to adjustment in the same manner as
provided in Paragraph 11 with respect to shares of Common Stock subject to
Options then outstanding), and the maximum amount of compensation that may be
paid under all Performance Awards denominated in cash (including the Fair Market
Value of any shares of Common Stock paid in satisfaction of such Performance
Awards) granted to any one individual during any calendar year may not exceed
$1,000,000, and any payment due with respect to a Performance Award shall be
paid no later than 10 years after the date of grant of such Performance Award.
The limitations set forth in the preceding sentence shall be applied in a manner
that will permit compensation generated under the Plan to constitute
"performance-based" compensation for purposes of Section 162(m) of the Code,
including, without limitation, counting against such maximum number of shares,
to the extent required under Section 162(m) of the Code and applicable
interpretive authority thereunder, any shares subject to Options that are
canceled or repriced.

      5.2 GRANT OF AWARDS. The Committee may from time to time grant Awards to
one or more employees, Consultants or Directors determined by it to be eligible
for participation in the Plan in accordance with the terms of the Plan.

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5.3 STOCK OFFERED. Subject to the limitations set forth in Paragraph 5.1, the
stock to be offered pursuant to the grant of an Award may be authorized but
unissued Common Stock or Common Stock previously issued and outstanding and
reacquired by the Company. Any of such shares which remain unissued and which
are not subject to outstanding Awards at the termination of the Plan shall cease
to be subject to the Plan but, until termination of the Plan, the Company shall
at all times make available a sufficient number of shares to meet the
requirements of the Plan.

6. ELIGIBILITY

Awards may be granted only to persons who, at the time of grant, are employees,
Consultants or Directors. An Award may be granted on more than one occasion to
the same person, and, subject to the limitations set forth in the Plan, such
Award may include an Incentive Stock Option, an Option that is not an Incentive
Stock Option, a Restricted Stock Award, a Performance Award, a Phantom Stock
Award or any combination thereof.

7. STOCK OPTIONS

      7.1 OPTION PERIOD. The term of each Option shall be as specified by the
Committee at the date of grant.

      7.2 LIMITATIONS ON EXERCISE OF OPTION. An Option shall be exercisable in
whole or in such installments and at such times as determined by the Committee.

      7.3 SPECIAL LIMITATIONS ON INCENTIVE STOCK OPTIONS. An Incentive Stock
Option may be granted only to an individual who is employed by the Company or
any parent or subsidiary corporation (as defined in Section 424 of the Code) at
the time the Option is granted. To the extent that the aggregate Fair Market
Value (determined at the time the respective Incentive Stock Option is granted)
of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by an individual during any calendar year under all incentive
stock option plans of the Company and its parent and subsidiary corporations
exceeds $100,000, such Incentive Stock Options shall be treated as Options which
do not constitute Incentive Stock Options. The Committee shall determine, in
accordance with applicable provisions of the Code, Treasury Regulations and
other administrative pronouncements, which of a Participant's Incentive Stock
Options will not constitute Incentive Stock Options because of such limitation
and shall notify the Participant of such determination as soon as practicable
after such determination. No Incentive Stock Option shall be granted to an
individual if, at the time the Option is granted, such individual owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company or of its parent or subsidiary corporation, within the
meaning of Section 422(b)(6) of the Code, unless (i) at the time such Option is
granted the option price is at least 110% of the Fair Market Value of the Common
Stock subject to the Option and (ii) such Option by its terms is not exercisable
after the expiration of five years from the date of grant. An Incentive Stock
Option shall not be transferable otherwise than by will or the laws of descent
and distribution, and shall be exercisable during the Participant's lifetime
only by such Participant or the Participant's guardian or legal representative.

      7.4 OPTION AGREEMENT. Each Option shall be evidenced by an Option
Agreement in such form and containing such provisions not inconsistent with the
provisions of the Plan as the Committee from time to time shall approve,
including, without limitation, provisions to qualify an Incentive Stock Option
under Section 422 of the Code. Each Option Agreement shall specify the effect of
termination of (i) employment, (ii) the consulting or advisory relationship or
(iii) membership on the Board, as applicable, on the exercisability of the
Option. An Option Agreement may provide for the payment of the option price, in
whole or in part, by the delivery of a number of shares of Common Stock (plus
cash if necessary) having a Fair Market Value equal to such option price.
Moreover, an Option Agreement may provide for a "cashless exercise" of the
Option by establishing procedures satisfactory to the Committee with respect
thereto. Further, an Option Agreement may provide for the surrender of the right
to purchase shares under the Option in return for a payment in cash or shares of
Common Stock or a combination of cash and shares of Common Stock equal in value
to the excess of the Fair Market Value of the shares with respect to which the
right to purchase is surrendered over the option price therefore ("Stock
Appreciation Rights"), on such terms and conditions as the Committee in its sole
discretion may prescribe. In the case of any such Stock Appreciation Right that
is granted in connection with an Incentive Stock Option, such right shall be
exercisable only when the Fair Market Value of the Common Stock exceeds the
price specified therefore in the Option or the portion thereof to be
surrendered. The terms and conditions of the respective Option Agreements need
not be identical. Subject to the consent of the Participant, the Committee may,
in its sole discretion, amend an outstanding Option Agreement from time to time
in any manner that is not inconsistent with the provisions of the Plan
(including, without limitation, an amendment that accelerates the time at which
the Option, or a portion thereof, may be exercisable); provided, however, that,
except as provided in

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Paragraph 11, the Committee may not, without approval of the stockholders of the
Company, amend any outstanding Option Agreement to lower the option price (or
cancel and replace any outstanding Option Agreement with Option Agreements
having a lower option price).

      7.5 OPTION PRICE AND PAYMENT. The price at which a share of Common Stock
may be purchased upon exercise of an Option shall be determined by the Committee
but, subject to adjustment as provided in Paragraph 11, such purchase price
shall not be less than the Fair Market Value of a share of Common Stock on the
date such Option is granted. The Option or portion thereof may be exercised by
delivery of an irrevocable notice of exercise to the Company, as specified by
the Committee. The purchase price of the Option or portion thereof shall be paid
in full in the manner prescribed by the Committee. Separate stock certificates
shall be issued by the Company for those shares acquired pursuant to the
exercise of an Incentive Stock Option and for those shares acquired pursuant to
the exercise of any Option that does not constitute an Incentive Stock Option.

      7.6 SHAREHOLDER RIGHTS AND PRIVILEGES. The Participant shall be entitled
to all the privileges and rights of a stockholder only with respect to such
shares of Common Stock as have been purchased under the Option and for which
certificates of stock have been registered in the Participant's name.

      7.7 OPTIONS AND RIGHTS IN SUBSTITUTION FOR OPTIONS GRANTED BY OTHER
EMPLOYERS. Options and Stock Appreciation Rights may be granted under the Plan
from time to time in substitution for options held by individuals providing
services to corporations or other entities who become employees, Consultants or
Directors as a result of a merger or consolidation or other business transaction
with the Company or any Affiliate.

8. RESTRICTED STOCK AWARDS

      8.1 FORFEITURE RESTRICTIONS TO BE ESTABLISHED BY THE COMMITTEE. Shares of
Common Stock that are the subject of a Restricted Stock Award shall be subject
to restrictions on disposition by the Participant and an obligation of the
Participant to forfeit and surrender the shares to the Company under certain
circumstances (the "Forfeiture Restrictions"). The Forfeiture Restrictions shall
be determined by the Committee in its sole discretion, and the Committee may
provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of
one or more performance measures established by the Committee that are based on
(1) the price of a share of Common Stock, (2) the Company's earnings per share,
(3) the Company's market share, (4) the market share of a business unit of the
Company designated by the Committee, (5) the Company's sales, (6) the sales of a
business unit of the Company designated by the Committee, (7) the net income
(before or after taxes) of the Company or any business unit of the Company
designated by the Committee, (8) the cash flow return on investment of the
Company or any business unit of the Company designated by the Committee, (9) the
earnings before or after interest, taxes, depreciation and/or amortization of
the Company or any business unit of the Company designated by the Committee,
(10) the economic value added, (11) the return on stockholders' equity achieved
by the Company or (12) the total stockholders' return achieved by the Company;
(ii) the Participant's continued employment with the Company or continued
service as a Consultant or Director for a specified period of time; (iii) the
occurrence of any event or the satisfaction of any other condition specified by
the Committee in its sole discretion; or (iv) a combination of any of the
foregoing. The performance measures described in clause (i) of the preceding
sentence may be subject to adjustment for specified significant extraordinary
items or events, and may be absolute, relative to one or more other companies,
or relative to one or more indexes, and may be contingent upon future
performance of the Company or any Affiliate, division, or department thereof.
Each Restricted Stock Award may have different Forfeiture Restrictions, in the
discretion of the Committee, and may, if approved by the Committee, provide for
Forfeiture Restrictions to lapse upon occurrence of a Corporate Change.

      8.2 OTHER TERMS AND CONDITIONS. Common Stock awarded pursuant to a
Restricted Stock Award shall be represented by a stock certificate registered in
the name of the Participant. Unless provided otherwise in a Restricted Stock
Agreement, the Participant shall have the right to receive dividends with
respect to Common Stock subject to a Restricted Stock Award, to vote Common
Stock subject thereto and to enjoy all other stockholder rights, except that (i)
the Participant shall not be entitled to delivery of the stock certificate until
the Forfeiture Restrictions have expired, (ii) the Company shall retain custody
of the stock until the Forfeiture Restrictions have expired, (iii) the
Participant may not sell, transfer, pledge, exchange, hypothecate or otherwise
dispose of the stock until the Forfeiture Restrictions have expired, and (iv) a
breach of the terms and conditions established by the Committee pursuant to the
Restricted Stock Agreement shall cause a forfeiture of the Restricted Stock
Award. At the time of such Award, the Committee may, in its sole discretion,
prescribe additional terms, conditions or restrictions relating to Restricted
Stock Awards, including, but not limited to, rules pertaining to the termination
of employment or service as a Consultant or Director (by retirement, disability,
death or otherwise) of a Participant prior to

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expiration of the Forfeitures Restrictions. Such additional terms, conditions or
restrictions shall be set forth in a Restricted Stock Agreement made in
conjunction with the Award.

      8.3 PAYMENT FOR RESTRICTED STOCK. The Committee shall determine the amount
and form of any payment for Common Stock received pursuant to a Restricted Stock
Award, provided that in the absence of such a determination, a Participant shall
not be required to make any payment for Common Stock received pursuant to a
Restricted Stock Award, except to the extent otherwise required by law.

      8.4 COMMITTEE'S DISCRETION TO ACCELERATE VESTING OF RESTRICTED STOCK
Awards. The Committee may, in its discretion and as of a date determined by the
Committee, fully vest any or all Common Stock awarded to a Participant pursuant
to a Restricted Stock Award and, upon such vesting, all restrictions applicable
to such Restricted Stock Award shall terminate as of such date. Any action by
the Committee pursuant to this Paragraph 8.4 may vary among individual
Participants and may vary among the Restricted Stock Awards held by any
individual Participant. Notwithstanding the preceding provisions of this
Paragraph 8.4, the Committee may not take any action described in this Paragraph
8.4 with respect to a Restricted Stock Award that has been granted to a "covered
employee" (within the meaning of Treasury Regulation Section 1.162-27(c)(2)) if
such Award has been designed to meet the exception for performance-based
compensation under Section 162(m) of the Code.

      8.5 RESTRICTED STOCK AGREEMENTS. At the time any Award is made under this
Paragraph 8, the Company and the Participant shall enter into a Restricted Stock
Agreement setting forth each of the matters contemplated hereby and such other
matters as the Committee may determine to be appropriate. The terms and
provisions of the respective Restricted Stock Agreements need not be identical.
Subject to the consent of the Participant and the restriction set forth in the
last sentence of Paragraph 8.4, the Committee may, in its sole discretion, amend
an outstanding Restricted Stock Agreement from time to time in any manner that
is not consistent with the provisions of this Plan.

9. PERFORMANCE AWARDS

      9.1 PERFORMANCE PERIOD. The Committee shall establish, with respect to and
at the time of each Performance Award, the number of share of Common Stock
subject to, or the maximum value of, the Performance Award and the performance
period over which the performance applicable to the Performance Award shall be
measured.

      9.2 PERFORMANCE MEASURES. A Performance Award shall be awarded to a
Participant contingent upon future performance of the Company of any Affiliate,
division, or department thereof during the performance period. The Committee
shall establish the performance measures applicable to such performance either
(i) prior to the beginning of the performance period or (ii) within 90 days
after the beginning of the performance period if the outcome of the performance
targets is substantially uncertain at the time such targets are established, but
not later than the date that 25% of the performance period has elapsed; provided
such measures may be made subject to adjustment for specified significant
extraordinary items or events. The performance measures may be absolute,
relative to one or more other companies, or relative to one or more indexes. The
performance measures established by the Committee may be based upon (1) the
price of a share of Common Stock, (2) the Company's earnings per share, (3) the
Company's market share, (4) the market share of a business unit of the Company
designated by the Committee, (5) the Company's sales, (6) the sales of a
business unit of the Company designated by the Committee, (7) the net income
(before or after taxes) of the Company or any business unit of the Company
designated by the Committee, (8) the cash flow return on investment of the
Company or any business unit of the Company designated by the Committee, (9) the
earnings before or after interest, taxes, depreciation, and/or amortization of
the Company or any business unit of the Company designated by the Committee,
(10) the economic value added, (11) the return on stockholders' equity achieved
by the Company, (12) the total stockholders' return achieved by the Company or
(13) a combination of any of the foregoing. The Committee, in its sole
discretion, may provide for an adjustable Performance Award value based upon the
level of achievement of performance measures.

      9.3 AWARDS CRITERIA. In determining the value of Performance Awards, the
Committee shall take into account a Participant's responsibility level,
performance, potential, other Awards and such other considerations as it deems
appropriate. The Committee, in its sole discretion, may provide for a reduction
in the value of a Participant's Performance Award during the performance period.

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      9.4 PAYMENT. Following the end of the performance period, the holder of a
Performance Award shall be entitled to receive payment of an amount not
exceeding the number of shares of Common Stock subject to, or the maximum value
of, the Performance Award, based on the achievement of the performance measures
for such performance period, as determined and certified in writing by the
Committee. Payment of a Performance Award may be made in cash, Common Stock or a
combination thereof, as determined by the Committee. Payment shall be made in a
lump sum or in installments as prescribed by the Committee. If a Performance
Award covering shares of Common Stock is to be paid in cash, such payment shall
be based on the Fair Market Value of the Common Stock on the payment date.

      9.5 TERMINATION OF AWARD. A Performance Award shall terminate if the
Participant does not remain continuously in the employ of the Company and its
Affiliates or does not continue to perform services as a Consultant or a
Director for the Company and its Affiliates at all times during the applicable
performance period, except as may be determined by the Committee.

      9.6 PERFORMANCE AWARD AGREEMENTS. At the time any Award is made under this
Paragraph 9, the Company and the Participant shall enter into a Performance
Award Agreement setting forth each of the matters contemplated hereby, and such
additional matters as the Committee may determine to be appropriate. The terms
and provisions of the respective Performance Award Agreements need not be
identical.

10.   PHANTOM STOCK AWARDS

      10.1 PHANTOM STOCK AWARDS. Phantom Stock Awards are rights to receive
shares of Common Stock (or the Fair Market Value thereof), or rights to receive
an amount equal to any appreciation or increase in the Fair Market Value of
Common Stock over a specified period of time, which vest over a period of time
as established by the Committee, without satisfaction of any performance
criteria or objectives. The Committee may, in its discretion, require payment or
other conditions of the Participant respecting any Phantom Stock Award.

      10.2 AWARD PERIOD. The Committee shall establish, with respect to and at
the time of each Phantom Stock Award, a period over which the Award shall vest
with respect to the Participant.

      10.3 AWARDS CRITERIA. In determining the value of Phantom Stock Awards,
the Committee shall take into account a Participant's responsibility level,
performance, potential, other Awards and such other considerations as it deems
appropriate.

      10.4 PAYMENT. Following the end of the vesting period for a Phantom Stock
Award (or at such other time as the applicable Phantom Stock Award Agreement may
provide), the holder of a Phantom Stock Award shall be entitled to receive
payment of an amount, not exceeding the maximum value of the Phantom Stock
Award, based on the then vested value of the Award. Payment of a Phantom Stock
Award may be made in cash, Common Stock, or a combination thereof as determined
by the Committee. Payment shall be made in a lump sum or in installments as
prescribed by the Committee. Any payment to be made in cash shall be based on
the Fair Market Value of the Common Stock on the payment date. Cash dividend
equivalents may be paid during or after the vesting period with respect to a
Phantom Stock Award, as determined by the Committee.

      10.5 TERMINATION OF AWARD. A Phantom Stock Award shall terminate if the
Participant does not remain continuously in the employ of the Company and its
Affiliates or does not continue to perform services as a Consultant or a
Director of the Company and its Affiliates at all times during the applicable
vesting period, except as may be otherwise determined by the Committee.

      10.6 PHANTOM STOCK AWARD AGREEMENTS. At the time any Award is made under
this Paragraph 10, the Company and the Participant shall enter into a Phantom
Stock Award Agreement setting forth each of the matters contemplated hereby, and
such additional matters as the Committee may determine to be appropriate. The
terms and provisions of the respective Phantom Stock Award Agreements need not
be identical.

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11. RECAPITALIZATION OR REORGANIZATION

      11.1 NO EFFECT ON RIGHT OR POWER. The existence of the Plan and the Awards
granted hereunder shall not affect in any way the right or power of the Board or
the stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company's or any
Affiliate's capital structure or its business, any merger or consolidation of
the Company or any Affiliate, any issue of debt or equity securities ahead of or
affecting Common Stock or the rights thereof, the dissolution or liquidation of
the Company or any Affiliate or any sale, lease, exchange or other disposition
of all or any part of its assets or business or any other corporate act or
proceeding.

      11.2 SUBDIVISION OR CONSOLIDATION OF SHARES; STOCK DIVIDENDS. The shares
with respect to which Awards may be granted are shares of Common Stock as
presently constituted, but if, and whenever, prior to the expiration of an Award
theretofore granted, the Company shall effect a subdivision or consolidation of
shares of Common Stock or the payment of a stock dividend on Common Stock
without receipt of consideration by the Company, the number of shares of Common
Stock with respect to which such Award may thereafter be exercised or satisfied,
as applicable (i) in the event of an increase in the number of outstanding
shares shall be proportionately increased, and the purchase price per share
shall be proportionately reduced, and (ii) in the event of a reduction in the
number of outstanding shares shall be proportionately reduced, and the purchase
price per share shall be proportionately increased. Any fractional share
resulting from such adjustment shall be rounded up to the next whole share.

      11.3 RECAPITALIZATIONS AND CORPORATE CHANGES. If the Company
recapitalizes, reclassifies its capital stock, or otherwise changes its capital
structure (a "recapitalization"), the number and class of shares of Common Stock
covered by an Award theretofore granted shall be adjusted so that such Award
shall thereafter cover the number and class of shares of stock and securities to
which the Participant would have been entitled pursuant to the terms of the
recapitalization if, immediately prior to the recapitalization, the Participant
had been the holder of record of the number of shares of Common Stock then
covered by such Award. If (i) the Company shall not be the surviving entity in
any merger or consolidation (or survives only as a subsidiary of an entity),
(ii) the Company sells, leases or exchanges or agrees to sell, lease or exchange
all or substantially all of its assets to any other person or entity, (iii) the
Company is to be dissolved and liquidated, (iv) any person or entity, including
a "group" as contemplated by Section 13(d)(3) of the 1934 Act, acquires or gains
ownership or control (including, without limitation, power to vote) of more than
50% of the outstanding shares of the Company's voting stock (based upon voting
power), or (v) as a result of or in connection with a contested election of
Directors, the persons who were Directors of the Company before such election
shall cease to constitute a majority of the Board (each such event is referred
to in this Plan as a "Corporate Change"), no later than (x) 10 days after the
approval by the stockholders of the Company of such merger, consolidation,
reorganization, sale, lease or exchange of assets or dissolution of such
election of Directors or (y) 30 days after a Corporate Change of the type
described in clause (iv), the Committee, acting in its sole discretion without
the consent or approval of any Participant, shall effect one or more of the
following alternatives, which alternatives may vary among individual
Participants and which may vary among Options held by any individual
Participant: (1) accelerate the time at which Options then outstanding may be
exercised so that such Options may be exercised in full for a limited period of
time on or before a specified date (before or after such Corporate Change) fixed
by the Committee, after which specified date all unexercised Options and all
rights of Participants thereunder shall terminate, (2) require the mandatory
surrender to the Company by selected Participants of some or all of the
outstanding Options held by such Participants (irrespective of whether such
Options are then exercisable under the provisions of the Plan) as of a date,
before or after such Corporate Change, specified by the Committee, in which
event the Committee shall thereupon cancel such Options and the Company shall
pay (or cause to be paid) to each Participant an amount of cash per share equal
to the excess, if any, of the amount calculated in Paragraph 11.4 (the "Change
of Control Value") of the shares subject to such Option over the exercise
price(s) under such Options for such shares, or (3) make such adjustments to
Options then outstanding as the Committee deems appropriate to reflect such
Corporate Change (provided, however, that the Committee may determine in its
sole discretion that no adjustment is necessary to Options then outstanding),
including, without limitation, adjusting an Option to provide that the number
and class of shares of Common Stock covered by such Option shall be adjusted so
that such Option shall thereafter cover securities of the surviving or acquiring
corporation or other property (including, without limitation, cash) as
determined by the Committee in its sole discretion.

      11.4 CHANGE OF CONTROL VALUE. For the purposes of clause (2) in Paragraph
11.3, the "Change in Control Value" shall equal the amount determined in clause
(i), (ii) or (iii), whichever is applicable, as follows: (i) the per share price
offered to stockholders of the Company in any such merger, consolidation, sale
of assets or dissolution transaction, (ii) the price per share offered to
stockholders of the Company in any tender offer or exchange offer whereby a
Corporate Change takes place or (iii) if such Corporate Change occurs other than
pursuant to a tender or exchange offer, the fair market value per share of the
shares into which such Options being surrendered are exercisable, as determined
by the Committee as of the

                                      -8-
<PAGE>
date determined by the Committee to be the date of cancellation and surrender of
such Options. In the event that the consideration offered to stockholders of the
Company in any transaction described in this Paragraph 11.4 or Paragraph 11.3
consists of anything other than cash, the Committee shall determine the fair
cash equivalent of the portion of the consideration offered which is other than
cash.

      11.5 OTHER CHANGES IN COMMON STOCK. In the event of changes in the
outstanding Common Stock by reason of recapitalizations, reorganizations,
mergers, consolidations, combinations, split-ups, split-offs, spin-offs,
exchanges or other relevant changes in capitalization or distributions to the
holders of Common Stock occurring after the date of the grant of any Award and
not otherwise provided for by this Paragraph 11, such Award and any agreement
evidencing such Award shall be subject to adjustment by the Committee at its
sole discretion as to the number and price of shares of Common Stock or other
consideration subject to such Award. In the event of any such change in the
outstanding Common Stock or distribution to the holders of Common Stock, the
aggregate number of shares available under the Plan and the maximum number of
shares that may be subject to Awards granted to any one individual may be
appropriately adjusted by the Committee, whose determination shall be
conclusive. Notwithstanding the foregoing, except as otherwise provided by the
Committee, upon the occurrence of a Corporate Change, the Committee, acting in
its sole discretion without the consent or approval of any Participant, may
require the mandatory surrender to the Company by selected Participants of some
or all of the outstanding Performance Awards and Phantom Stock Awards as of a
date, before or after such Corporate Change, specified by the Committee, in
which event the Committee shall thereupon cancel such Performance Awards and
Phantom Stock Awards and the Company shall pay (or cause to be paid) to each
Participant an amount of cash equal to the maximum value of such Performance
Award or Phantom Stock Award which, in the event the applicable performance or
vesting period set forth in such Performance Award or Phantom Stock Award has
not been completed, shall be multiplied by a fraction, the numerator of which is
the number of days during the period beginning on the first day of the
applicable performance or vesting period and ending on the date of the
surrender, and the denominator of which is the aggregate number of days in the
applicable performance or vesting period.

      11.6 STOCKHOLDER ACTION. Any adjustment provided for in the above
subparagraphs shall be subject to any required stockholder action.

      11.7 NO ADJUSTMENTS UNLESS OTHERWISE PROVIDED. Except as expressly
provided elsewhere in this Plan, the issuance by the Company of shares of stock
of any class or securities convertible into shares of stock of any class, for
cash, property, labor or services, upon direct sale, upon the exercise of rights
or warrants to subscribe therefore, or upon conversion of shares or obligations
of the Company convertible into such shares or other securities, and in any case
whether or not for fair value, shall not affect, and no adjustment by reason
thereof shall be made with respect to, the number of shares of Common Stock
subject to Awards theretofore granted or the purchase price per share, if
applicable.

12. AMENDMENT AND TERMINATION OF THE PLAN

The Board in its discretion may terminate the Plan at any time with respect to
any shares of Common Stock for which Awards have not theretofore been granted.
The Board shall have the right to alter or amend the Plan or any part thereof
from time to time; provided that no change in the Plan may be made that would
impair the rights of a Participant with respect to an Award theretofore granted
without the consent of the Participant, and provided, further, that the Board
may not, without approval of the stockholders of the Company, (i) amend the Plan
to increase the maximum aggregate number of shares that may be issued under the
Plan or change the class of individuals eligible to receive Awards under the
Plan, or (ii) amend or delete the final sentence of Paragraph 7.4.

                                      -9-
<PAGE>
13. MISCELLANEOUS

      13.1 NO RIGHT TO AN AWARD. Neither the adoption of the Plan nor any action
of the Board or of the Committee shall be deemed to give any individual any
right to be granted an Option, a right to a Restricted Stock Award, a right to a
Performance Award or a right to a Phantom Stock Award, or any other rights
hereunder except as may be evidenced by an Award agreement duly executed on
behalf of the Company, and then only to the extent and on the terms and
conditions expressly set forth therein. The Plan shall be unfunded. The Company
shall not be required to establish any special or separate fund or to make any
other segregation of funds or assets to assure the performance of its
obligations under any Award.

      13.2 NO EMPLOYMENT/MEMBERSHIP RIGHTS CONFERRED. Nothing contained in the
Plan shall (i) confer upon any employee or Consultant any right with respect to
continuation of employment or of a consulting or advisory relationship with the
Company or any Affiliate or (ii) interfere in any way with the right of the
Company or any Affiliate to terminate his or her employment or consulting or
advisory relationship at any time. Nothing contained in the Plan shall confer
upon any Director any right with respect to continuation of membership on the
Board.

      13.3 OTHER LAWS; WITHHOLDING. The Company shall not be obligated to issue
any Common Stock pursuant to any Award granted under the Plan at any time when
the shares covered by such Award have not been registered under the Securities
Act of 1933, as amended, and such other state and federal laws, rules and
regulations as the Company or the Committee deems applicable and, in the opinion
of legal counsel for the Company, there is no exemption from the registration
requirements of such laws, rules and regulations available for the issuance and
sale of such shares. No fractional shares of Common Stock shall be delivered,
nor shall any cash in lieu of fractional shares be paid. The Company shall have
the right to deduct in connection with all Awards any taxes required by law to
be withheld and to require any payments required to enable it to satisfy its
withholding obligations.

      13.4 NO RESTRICTION ON CORPORATE ACTION. Nothing contained in the Plan
shall be construed to prevent the Company or any Affiliate from taking any
action that is deemed by the Company or such Affiliate to be appropriate or in
its best interest, whether or not such action would have an adverse effect on
the Plan or any Award made under the Plan. No Participant, beneficiary or other
person shall have any claim against the Company or any Affiliate as a result of
any such action.

      13.5 RESTRICTIONS ON TRANSFER. An Award (other than an Incentive Stock
Option, which shall be subject to the transfer restrictions set forth in
Paragraph 7.3) shall not be transferable otherwise than (i) by will or the laws
of descent and distribution, (ii) pursuant to an qualified domestic relations
order as defined by the Code or Title I of the Employee Retirement Income
Security Act of 1974, as amended, or the rules thereunder or (iii) with the
consent of the Committee.

      13.6 GOVERNING LAW. The Plan shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without regard to conflicts
of laws principles thereof.

                                      -10-<PAGE>

                                                                   EXHIBIT 10(o)

                            EQUIPMENT LEASE AGREEMENT

Silsbee Trading and Transportation Corp., a Texas Corporation, hereinafter
"STTC"), with an address at P. O. Box 695, Silsbee, Texas 77656, agrees to lease
to South Hampton Refining Co., a Texas Corporation, (hereinafter "SHRCO"), with
an address at P. O. Box 1636, Silsbee, Texas 77656, which agrees to lease from
STTC the Vehicles and Equipment described in SCHEDULE "A" attached hereto. The
term of the lease shall begin on January 1, 2004 and shall continue for a period
of Five (5) years unless terminated early as provided in the lease. Upon
expiration or termination of the Vehicle lease, SHRCO shall return the vehicles
to STTC at its location at Highway 418 in Hardin County, Texas, in the same
condition and appearance as when received, ordinary wear and tear excepted. Any
holding over after the expiration of the Vehicle lease shall be on a
month-to-month basis and subject to all the terms of this Lease.

     1.   MAINTENANCE AND REPAIR. STTC agrees, at its own cost and expense, to
          provide with respect to the Vehicles leased,: (a) all preventive
          maintenance, replacement parts, and repairs to keep the Vehicles in
          good repair and operating condition; (b) oil and lubricants necessary
          for the efficient operation of the Vehicles; (c) all necessary tires
          and tubes; (d) road service due to mechanical and tire failures; (e)
          periodic exterior washing; (f)initial painting and lettering of each
          Vehicle according to SHRCO specifications at the time the Vehicle is
          placed into service, at a cost not exceeding the per-vehicle allowance
          specified in SCHEDULE "A". In the event any Vehicle shall be disabled
          for any reason, SHRCO and/or its driver shall immediately notify STTC.
          SHRCO agrees that it will not cause or permit any person other than
          STTC or persons authorized by STTC to make any repairs or adjustments
          to a Vehicle, and shall abide by its directions concerning emergency
          repairs. In the event a Vehicle is disabled due to mechanical or tire
          failure, STTC shall, within a reasonable period of time after receipt
          of notification, properly repair, or cause the repair of, the Vehicle.
          SHRCO will cause its drivers to

                                       1

<PAGE>

          report any trouble concerning the Vehicle not later than the date of
          occurrence and to check oil and coolant levels in each Vehicle on a
          daily basis to prevent damage.

2.   VEHICLE LEASE SERVICE AGREEMENT. STTC will provide for inspections,
          preventive maintenance, and routine repairs in such a manner and at
          such times as to minimize the disruption of the normal use of the
          Vehicle. SHRCO will deliver the Vehicles to the repair facility and
          pick them up as needed after repairs or maintenance is completed. Any
          tow charges resulting from routine maintenance or repairs will be paid
          by STTC.

3.   FUEL. Shrco shall provide all fuel for the Vehicles and shall be
          responsible for all reporting, taxes, and charges associated
          therewith.

4.   LICENSES, TAXES AND PERMITS. STTC shall, at its own expense, register and
          title each Vehicle, and pay for any Vehicle inspection fees, in the
          state of domicile of such Vehicle for the licensed weight. STTC shall
          also pay the Federal Highway Use Tax and all personal property tax
          applicable to such Vehicle in that domicile state. If permitted by
          law, STTC shall obtain, at SHRCO's expense, other vehicle licenses,
          registrations, or pro-rate or state reciprocity plates, as SHRCO may
          request. Any increase in these rates or fees or change in the method
          of assessment over the allowance shown in SCHEDULE "A" will be paid
          for by SHRCO. Other than as set forth above, SHRCO shall pay for all
          permits, plates, special licenses, fees, or taxes (including any
          penalties or interest) required by SHRCO's business or now or
          hereafter imposed upon the operation or use of the Vehicles, or on
          this lease or on the charges accruing under this lease, including, but
          not limited to, sales or use taxes, mileage or ton mileage taxes,
          highway and bridge tolls, and any new and/or additional taxes and
          fees.

5.   LEASE CHARGES. SHRCO agrees to pay STTC the charges provided for under this
          lease upon receipt of an invoice, without deduction or offset. STTC
          will invoice SHRCO on a monthly basis, including the billing of fixed
          charges in advance, and payment

                                       2

<PAGE>

          shall be made to the location designated by STTC. Unless SHRCO shall
          protest the correctness of any invoice within seven (7) days of its
          receipt, SHRCO agrees that such invoice shall be presumed to be
          correct. Should SHRCO fail to pay any charges when due, SHRCO shall
          pay interest on such delinquent amounts at one and one-half percent
          (1-1/2%) per month or the maximum permissible rate allowed in the
          jurisdiction in which SHRCO's principal place of business is located,
          whichever is lower, from the date on which payment was due until paid,
          together with all expenses of collection and reasonable attorneys'
          fees. This interest charge shall not be construed as an agreement to
          accept late payments.

6.   VEHICLE USE AND DRIVERS. SHRCO shall use the Vehicle only in the normal and
          ordinary course of its business and operations and in a careful,
          non-abusive manner, and not beyond its capacity and SHRCO shall not
          make any alterations to the Vehicle without STTC's prior written
          consent. Subject to the terms of this lease, from the time of delivery
          to SHRCO of any Vehicle covered by this lease, SHRCO shall have
          exclusive possession, control, supervision and use of the Vehicle
          until its return to STTC. SHRCO agrees that all Vehicles shall be
          operated by safe, qualified, properly licensed drivers, who shall
          conclusively be presumed to be SHRCO's agent, servant or employee
          only, and subject to its exclusive direction and control. The Vehicles
          shall not be operated: (a) by a driver in possession of or under the
          influence of alcohol or any controlled drug, substance, or narcotic;
          (b) in a reckless or abusive manner; (c) off an improved road; (d) on
          an under inflated tire; (e) improperly loaded or loaded beyond maximum
          weight; or (f) in violation of any applicable laws, ordinances, or
          rules; and SHRCO shall protect, defend, indemnify and hold STTC
          harmless from and against all fines, claims, forfeitures, judgments,
          seizures, confiscations or penalties arising out of any such
          occurrence. SHRCO will be responsible for all expenses for removing or
          towing any mired or snowbound Vehicle. SHRCO agrees not to use or
          cause any Vehicle to be used for the transportation of

                                       3

<PAGE>

          hazardous materials as defined by regulations promulgated by the Unite
          States Department of Transportation, unless otherwise agreed to in
          writing by STTC, nor for any illegal purpose. SHRCO will cause each
          Vehicle to be stored in a safe location. Upon receipt of a written
          complaint from STTC specifying any reckless, careless or abusive
          handling by any driver of the Vehicle(s), SHRCO shall prohibit the
          driver so identified from operating the Vehicle(s), In the event that
          SHRCO shall fail to do so or shall be prevented from so doing by any
          agreement with anyone on the driver's behalf, SHRCO shall reimburse
          STTC in full for any loss and expense incurred by STTC as a result of
          operation or use of the Vehicle(s) by such driver; and SHRCO shall
          protect, defend, indemnify and hold STTC and its shareholders harmless
          from and against any costs, expenses or damages arising out of the
          operation of any Vehicle(s) by such driver, notwithstanding that STTC
          may be designated in this lease as responsible for extending liability
          coverage or assuming the risk of loss of, or damage to, the Vehicle.
          SHRCO authorizes STTC to investigate the driving record of each driver
          and test such driver with respect to his ability to operate the
          Vehicle to which he will be assigned, without prejudice to any right
          or remedy of STTC under this lease. The drivers shall be selected and
          employed by SHRCO. STTC will have no responsibility for compensation,
          supervision or control of such drivers.

7.   PHYSICAL DAMAGE TO VEHICLES. SHRCO assumes the risk of loss of, or damage
          to, the Vehicle(s) covered by this lease from any and every cause
          whatsoever, including, but not limited to, casualty, collision, upset,
          fire, theft, malicious mischief, vandalism, graffiti, glass breakage,
          and mysterious disappearance, except as otherwise provided in this
          lease. SHRCO shall, at its sole cost, procure and maintain an
          automobile collision and comprehensive insurance policy protecting
          STTC against any and all loss or damage to the Vehicles covered by
          this lease, in form satisfactory to STTC, which policy shall provide
          that losses, if any, shall be payable to STTC and/or its

                                       4

<PAGE>

          assignee. The amount of coverage for each vehicle shall be the fair
          market value of each item as of this date. SHRCO shall deliver to STTC
          all policies of insurance, or evidence satisfactory to STTC of such
          coverage, prior to delivery to SHRCO of any Vehicle covered by this
          lease. Each insurer shall agree, by endorsement upon the policy issued
          by it, or by an independent document provided to STTC, that it shall
          give STTC thirty (30) days' prior written notice of the effective date
          of any alteration or cancellation of such policy, and that such notice
          shall be sent by registered or certified mail postage prepaid, return
          receipt requested, to STTC, P. O. Box 695, Silsbee, Texas 77656.

8.   LIABILITY COVERAGE. SHRCO shall, at its sole cost, provide liability
          coverage for SHRCO and STTC and their respective agents, servants and
          employees, in accordance with the standard provisions of a basic
          automobile liability insurance policy as required in the jurisdiction
          in which the Vehicle is operated, against liability for bodily injury,
          including death, and property damage arising out of the ownership,
          maintenance, use and operation of the Vehicle(s) with limits of at
          least a combined single limit of $5,000,000 per occurrence (except
          that STTC shall not be liable for damage to property left, stored,
          loaded, or transported in, upon, or by the Vehicle). Such coverage
          shall be primary and not excess or contributory and shall be in
          conformity with the basic requirements of any applicable No-Fault or
          uninsured motorist laws, but does not include "Uninsured Motorist" or
          supplementary "No-Fault", or optional coverage. Such coverage, if the
          obligation of SHRCO, shall be in a form acceptable to STTC and SHRCO
          shall deliver all policies of insurance, or evidence satisfactory to
          STTC of such coverage, prior to delivery to SHRCO of any Vehicle
          covered by this lease. Each insurer shall agree, by endorsement upon
          the policy issued by it, or by an independent document provided to
          STTC, that it shall give STTC thirty (30) days' prior written notice
          of the effective date of any alteration or cancellation of such policy
          and that such notice shall be sent in the

                                       5

<PAGE>

          manner contemplated by Article 6. SHRCO shall notify STTC as well as
          SHRCO's insurance company, of any loss of, or damage to, or accident
          involving any Vehicle, immediately by telephone, and in writing as
          soon as practicable thereafter, and to cooperate fully in the
          investigation, prosecution and/or defense of any claim or suit and to
          do nothing to impair or invalidate any applicable liability, physical
          damage or cargo coverage. SHRCO shall provide in each vehicle proof of
          financial responsibility.

9.   INDEMNIFICATION. SHRCO shall protect, defend, indemnify and hold harmless
          STTC and its partners and its agents, servants and employees from any
          and all claims, suits, costs, damages, expenses and liabilities
          arising from: (a) SHRCO's failure to comply with its obligations to
          governmental bodies having jurisdiction over SHRCO and the Vehicles or
          its failure to comply with the terms of this lease, or the use,
          selection, possession, maintenance, and/or operation of the Vehicle;
          (b) any liability imposed upon or assumed by SHRCO under any Workers'
          Compensation Act, plan or contract and any and all injuries (including
          death) or property damage sustained by SHRCO or any driver, agent,
          servant or employee of SHRCO; or (c) SHRCO's failure to properly
          operate or maintain a trailer or other equipment not leased by STTC
          under this lease, or properly connect any trailer or other equipment.
          Where the Vehicle is operated with a trailer or other equipment not
          leased by STTC under this lease, then SHRCO warrants that such trailer
          or other equipment shall be in good operating condition compatible in
          all respects with the Vehicle with which it is to be used and in
          compliance with all laws and regulations covering the trailer or other
          equipment.

10.  ACCEPTANCE OF VEHICLES. If subsequent to the date of preparation of the
          SCHEDULE "A", any law, rule, or regulation shall require the
          installation of any additional equipment or accessories, including,
          but not limited to, anti-pollution and/or safety devices, or in the
          event that any modification of the Vehicle shall be required by virtue
          of such law, rule or

                                       6

<PAGE>

          regulation, STTC and SHRCO agree to cooperate in arranging for the
          installation of such equipment or the performance of such
          modifications and SHRCO agrees to promptly pay the full cost thereof,
          including any additional maintenance expenses upon receipt of an
          invoice for same. STTC may, in order to keep the fleet of equipment in
          up to date and modern condition, substitute trucks or trailers of
          equal or higher value. Equipment changes resulting in additional or
          enhanced equipment being available to SHRCO will result in additional
          lease charges as determined by mutual agreement.

11.  FORCE MAJEURE. STTC shall incur no liability to SHRCO for failure to
          perform any obligation under this lease caused or contributed to by
          events beyond STTC's reasonable control, such as, but not limited to,
          war, fire, governmental regulations, labor disputes, manufacturer,
          supplier or transportation shortages or delays, or fuel allocation
          programs.

12.  VEHICLE TITLE. Title to the Vehicles and all equipment delivered to SHRCO
          under this lease shall remain in STTC or its designee. SHRCO shall, at
          all times, at its sole cost, keep the Vehicles and related equipment
          free and clear from all liens, encumbrances, levies, attachments or
          other judicial process from every cause whatsoever, (other than a
          claimant through an act of STTC), and shall give STTC immediate
          written notice thereof and shall indemnify and hold STTC harmless from
          any loss or damage, including attorneys' fees, caused thereby.

13.  DEFAULT BY SHRCO AND REMEDIES. In the event SHRCO shall fail or refuse to
          pay any charges under this lease when due, or perform or observe any
          other term of this lease for five (5) days after written notice is
          sent to SHRCO by STTC, or if SHRCO or any guarantor of SHRCO's
          obligations shall become insolvent or make a bulk transfer of its
          assets or make an assignment for the benefit of creditors, or if SHRCO
          or any guarantor of SHRCO's obligations shall file or suffer the
          filing against it of a petition under the Bankruptcy Act or under any
          other insolvency law or law providing for the relief of debtors, or if
          any representation or warranty made by SHRCO herein or

                                       7

<PAGE>

          any document furnished by SHRCO or a guarantor of SHRCO's obligations
          shall prove to be incorrect in any material respect, STTC shall be
          entitled to pursue the remedies specified in the following paragraph.
          Upon the happening of one of the preceding Events of Default, STTC
          may, with or without terminating this lease, with or without demand or
          notice to SHRCO, and with or without any court order or process of
          law, take immediate possession of, and remove, any and all Vehicles
          covered by this lease wherever located, and/or retain and refuse to
          deliver, and/or re-deliver to SHRCO, the Vehicle(s), without STTC
          being liable to SHRCO for damages caused by such taking of possession.
          In addition, STTC may proceed by appropriate court action to enforce
          the terms of this lease or to recover damages for the breach of any of
          its terms. In the event STTC takes possession of or retains any
          Vehicle and there shall, at the time of taking or retention, be in,
          upon or attached to the Vehicle any property or things of a value
          belonging to SHRCO or in SHRCO's custody or control, STTC is
          authorized to take possession of such items and either hold the items
          for SHRCO or place them in public storage for SHRCO, at SHRCO's sole
          cost and risk of loss or damage.

14.  ADJUSTED COST. The parties hereto recognize that the lease rate provided
          for in this lease is based upon STTC's current costs and that such
          costs may fluctuate. Accordingly, STTC and SHRCO agree that for each
          rise or fall of one percent (1%) in the Consumer Price Index for All
          Urban Consumers for the United States, published by the United States
          Department of Labor, Bureau of Labor Statistics, or any successor
          index designated by STTC, above or below the Consumer Price Index
          figure applicable for each leased Vehicle as shown on SCHEDULE "A",
          the fixed lease charges shall be adjusted upward or downward. All
          increases under this Article shall be cumulative and shall be
          calculated only on the charges initially shown on the Vehicle's
          SCHEDULE "A". Upon adjustment, the fixed lease charge shall be rounded
          off to the nearest whole cent.

                                       8

<PAGE>

15.  NON-LIABILITY FOR CONTENTS. STTC shall not be liable for loss of, or damage
          to, any cargo or other property left, stored, loaded or transported
          in, upon, or by any vehicle furnished to SHRCO pursuant to this lease
          at any time or place, and SHRCO agrees to protect, indemnify, defend
          and hold STTC and its partners harmless from and against any claims
          for such loss or damage.

16.  ASSIGNMENT AND SUBLETTING. Without prior written consent of STTC, which
          consent will not be unreasonably withheld, SHRCO shall not voluntarily
          or involuntarily assign or pledge this lease or the Vehicles, or
          sublet, rent or license the use of the Vehicles, or cause or permit
          the Vehicles to be used by anyone other than SHRCO or its agents,
          servants or employees. This lease and any Vehicles, rent or other sums
          due or to become due hereunder may be assigned or otherwise
          transferred, either in whole or in part, by STTC, without affecting
          any obligations of SHRCO and, in such event, the right of SHRCO shall
          be subject to any lien, security interest or assignment given by STTC
          in connection with the ownership of the Vehicle(s), and the transferee
          or assignee shall have all of the rights, powers, privileges and
          remedies of STTC.

17.  DISCLAIMER. STTC MAKES NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, AS TO
          THE MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY
          VEHICLE COVERED BY THIS LEASE. STTC SHALL NOT BE LIABLE FOR LOSS OF
          SHRCO'S PROFITS OR BUSINESS, LOSS OR DAMAGE TO CARGO, DRIVER'S TIME,
          OR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES.

18.  MISCELLANEOUS. This lease and the schedules and/or riders attached hereto
          shall constitute the entire agreement between the parties and to be
          binding on STTC must be signed by an officer of STTC. This document
          shall constitute an agreement of lease and nothing shall be construed
          as giving to SHRCO any right, title or interest in any of the Vehicles
          or related equipment, except as lessee only. Upon execution of this
          lease by STTC and SHRCO, the lease shall be binding on the respective
          parties and their legal representative, successors and assigns. Its

                                       9

<PAGE>

          terms shall not be amended or altered by failure of either party to
          insist on performance, or failure to exercise any right or privilege,
          or in any manner unless such amendment or alteration is in writing and
          signed on behalf of the parties hereto. This lease shall supersede any
          and all proposals or agreement, written or verbal, between the
          parties, relating to the subject matter of this lease and may not be
          modified, terminated or discharged, except in writing and signed by
          the party against whom the enforcement of the discharge, modification
          or termination is sought. Any notice given under this lease shall be
          in writing and sent by registered or certified mail to STTC or to
          SHRCO, as the case may be, to the addresses set forth in this lease,
          or to such other addresses as are designated in writing by either
          party. This lease is to be interpreted, construed and enforced in
          accordance with the laws of the State of Texas. In the event any of
          the terms and provisions of this lease are in violation of or
          prohibited by any law, statute, regulation or ordinance of the United
          States and/or state or city where the lease is applicable, such terms
          and provisions shall be deemed amended to conform to such law,
          statute, regulation or ordinance without invalidating any of the other
          terms and provisions of this lease.

IN WITNESS WHEREOF, the parties shall cause this lease to be executed by their
duly authorized representative this 14th day of November, 2003.

Silsbee Trading and Transportation Corp.

by [ILLEGIBLE]

Its President

South Hampton Refining Co.

by [ILLEGIBLE]

Its President

                                       10

<PAGE>

SILSBEE TRADING AND TRANSPORTATION CORP.

SCHEDULE A

Equipment List
January 1, 2004

<TABLE>
<CAPTION>
I.D.#                                Description VIN                                           Monthly Amount
-------------------------------------------------------------------------------------------------------------
<S>               <C>                                <C>                                       <C>
  TRACTORS
113               '94 Mack Truck                     1M1AA13Y4RW037862                           $2,310.00
114               '95 Mack Truck                     1M1AA13Y4SW050960                           $2,310.00
115               '95 Mack Truck                     1M1AA13Y6SW050961                           $2,310.00
116               '96 Mack Truck                     1M1AA13Y7TW067382                           $2,310.00
117               '99 Mack Truck                     1M2AA13Y3XW105563                           $2,310.00
118               '00 Mack Truck                     1M2AA13YXXW113708                           $2,310.00
119               '00 Mack Truck                     1M2AA13Y1YW127594                           $2,310.00
120               '01 Mack Truck                     1M1AA13Y31W139210                           $2,310.00
  A306 TRAILERS
A3                '74 Trailmaster Trailer            74067                                       $1,035.00
A4                '77 Trailmaster Trailer            77030                                       $1,035.00
  A307 TRAILERS
AP25              '73 Trailmaster Trailer            73014                                       $1,035.00
AP26              '73 Trailmaster Trailer            73015                                       $1,035.00
AP27              '73 Trailmaster Trailer            73028                                       $1,035.00
AP28              '91 Trailmaster Trailer            1T9AE1582MF003226                           $1,035.00
AP29              '94 Trailmaster Trailer            1T9AE1587RF003021                           $1,035.00
AP30              '95 Trailmaster Trailer            1T9AE15B4SF003063                           $1,035.00
AP31              '00 Heil Trailer                   190DL452XY3H13739                           $1,035.00
  PRESSURE TRAILERS
SP181             '59 Fruehauf Trailer               C41347                                      $1,260.00
SP182             '72 Dalworth Trailer               TP51480                                     $1,260.00
SP183             '86 Enderby Anderson               1DZTA442XGG451111                           $1,260.00
SP184             '69 Lubbock LPG Trailer            57124                                       $1,260.00
</TABLE>

Other services to be provided and covered by the lease payments include:

     1.   Maintenance will be scheduled around operating requirements where
          possible;

     2.   Safety inspections allowance of 1200.00 annually is included in the
          above figures. Any excess will be charged to South Hampton;

     3.   License and taxes allowance of:

          a.   $2,005.00 each annually for tractors;

          b.   $450.00 each annually for A306/307 trailers;

          c.   $600.00 each annually for LPG trailers

          Amounts in excess of the allowance will be charged to South Hampton;

     4.   None of the above vehicles are subject to any other lease, memo, or
          other agreement which has been filed with the Texas Department of
          Public Safety;

     5.   The above vehicles are for the transportation of petroleum products.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]