Document:

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                                                               CUSIP 356713 10 7

                           TEXAS STANDARD OIL COMPANY

               INCORPORATED UNDER THE LAWS OF THE STATE OF TEXAS

                                  COMMON STOCK

                                                               SEE REVERSE FOR
                                                             CERTAIN DEFINITIONS

  NUMBER                                                            SHARES
----------                                                        ----------

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

--------------------------------------------------------------------------------
This
certifies
that

is the owner of
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 FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, $0.01 PAR VALUE, OF
                           TEXAS STANDARD OIL COMPANY

(hereinafter called the "Corporation"), transferable on the books of the
Corporation by the holder hereof in person or by duly authorized attorney, upon
surrender of the Certificate properly endorsed. This certificate and the shares
represented hereby are issued and shall be held subject to all the provisions of
the Certificate of Incorporation, as amended, and the Bylaws of the Corporation,
as amended (copies of which are on file at the office of the Transfer Agent),
to all of which the holder of this Certificate by acceptance hereof assents.
This Certificate is not valid unless countersigned and registered by the
Transfer Agent and Registrar. Witness the facsimile seal of the Corporation and
the facsimile signatures of its duly authorized officers.

DATE:

PRESIDENT                                     Countersigned:

                                                 SECURITIES TRANSFER CORPORATION
SECRETARY                                        P.O. Box 701629
                                                 Dallas, Tx. 75370

                                              By:
                  [TEXAS STANDARD                -------------------------------
                    OIL COMPANY                  TRANSFER AGENT - AUTHORIZED
                  CORPORATE SEAL]                SIGNATURE

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                           TEXAS STANDARD OIL COMPANY

                 TRANSFER FEE $20.00 PER NEW CERTIFICATE ISSUED

      A FULL STATEMENT OF THE RELATIVE RIGHTS, INTERESTS, PREFERENCES AND
          RESTRICTIONS OF EACH CLASS OF STOCK WILL BE FURNISHED BY THE
     CORPORATION TO ANY SHAREHOLDERS UPON WRITTEN REQUEST, WITHOUT CHARGE.

      The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
<Table>
<S>                                       <C>                                <C>
TEN COM  -as tenants in common            UNIF GIFT MIN ACT -                 CUSTODIAN
TEN ENT  -as tenants by the entireties                      -----------------          -----------------
JT TEN   -as joint tenants with right of                    (Cust)                           (Minor)
          survivorship and not as                           under Uniform Gifts to Minors
          tenants in common                                 Act
                                                               -----------------------------------------
                                                                              (State)
            Additional abbreviations may also be used though not in the above list.

For value received,                          hereby sell, assign and transfer unto
                   -------------------------

  PLEASE INSERT SOCIAL SECURITY OR OTHER
     IDENTIFYING NUMBER OF ASSIGNEE

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

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

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           PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

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----------------------------------------------------------------------------------------------- Shares
of the Common Stock represented by the within Certificate, and do hereby

irrevocably constitute and appoint
                                  ----------------------------------------------------------------------

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Attorney to transfer the said stock on the books of the within-named Corporation
with full power of substitution in the premises.

Dated                  20
     -----------------   --

                                        SIGNATURE:

                                        X
                                         ---------------------------------------------------------------

                                        X
                                         ---------------------------------------------------------------

SIGNATURE GUARANTEE:

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THE SIGNATURE(S) SHOULD BE MEDALLION STAMP GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION PURSUANT TO S.E.C. RULE 17AD-15.
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SIGNATURE(S) GUARANTEED BY:

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

X NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR
ENLARGEMENT, OR ANY CHANGE WHATEVER.
</Table><PAGE>

                                  AMENDMENT TO

                              EMPLOYMENT AGREEMENT

         WHEREAS, E. James Ferland (the "Executive") entered into an Employment
Agreement ("Agreement") with Public Service Enterprise Group Incorporated, a New
Jersey Corporation ("Enterprise"), dated as of June 16, 1998, covering the
Executive's services as Chairman of the Board and Chief Executive Officer of
Enterprise, and

         WHEREAS, the terms of such Agreement cover the employment of Executive
from June 16, 1998 until March 31, 2005, and

         WHEREAS, Enterprise and the Executive agree that the Executive will
make his services available to Enterprise for an additional two years beyond the
expiration date of the Agreement in accordance with the Agreement as amended
hereby;

         NOW, THEREFORE, IN CONSIDERATION of the mutual premises, Enterprise and
the Executive hereby agree to amend the Employment Agreement as follows:

                                      First
                                      -----

         Section 1(b) of the Agreement is amended to read as follows:

                  (b) Term. The term of the Executive's employment under this
         Agreement (the "Employment Period") shall commence as of the date
         hereof and shall continue until March 31, 2007. If the Executive elects
         to retire prior to March 31, 2007, the Employment Period shall end on
         the date of retirement.

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                                     Second
                                     ------

         Section 3(d) of the Agreement is amended to read as follows:

                  (d) Stock Award. In consideration of the commitment he will
         assume during the Employment Period, the Executive shall be granted an
         award (the "Stock Award") with respect to 210,000 shares of the Common
         Stock without nominal or par value of Enterprise ("Stock"). The initial
         150,000 shares granted pursuant to the Agreement were effective as of
         the Effective Date. The 60,000 additional shares granted with this
         Amendment are granted effective as of the date of this Amendment. The
         shares of the Stock Award shall be restricted and shall be subject to
         the following terms and conditions:

                           (i) The shares for the Stock Award shall be purchased
                  by Enterprise or its agent on the open market or issued from
                  Treasury shares. In the event any of the shares of the Stock
                  Award shall be forfeited, Enterprise may apply such shares for
                  its corporate purposes in its discretion.

                           (ii) The Executive's right to the Stock Award shall
                  vest in accordance with the following schedule, provided that
                  the Executive has remained continuously employed by the
                  Company, or its successor, during the Employment Period
                  through the dates indicated below:

                                       Date            Number of Shares
                                       ----            ----------------
                                    3/31/2002              60,000
                                    3/31/2003              20,000
                                    3/31/2004              30,000
                                    3/31/2005              40,000
                                    3/31/2006              30,000
                                    3/31/2007              30,000

                  The shares of Stock vesting in any one year are referred to as
                  an "Annual Award".

                                       -2-

<PAGE>

                           If, during the Employment Period, the Company
                  terminates the Executive's employment for Cause or the
                  Executive terminates his employment without Good Reason,
                  including Retirement prior to March 31, 2007, the Executive
                  shall forfeit all right to all shares of the Stock Award that
                  are not vested as of the Date of Termination. If, during the
                  Employment Period, the Company shall terminate the Executive's
                  employment without Cause or the Executive terminates his
                  employment for Good Reason, or the Executive's Employment
                  terminates by reason of death or Disability, the Executive's
                  right to receive all shares of the Stock Award shall vest as
                  of the Date of Termination.

                           (iii) Except as provided in (x), below, shares of the
                  Stock Award will be issued in the name of the Executive, but
                  will be held by Enterprise for the account of the Executive
                  together with a stock power that the Executive shall execute
                  and deliver to Enterprise. The shares shall bear a restrictive
                  legend indicating that they are subject to the terms,
                  conditions and limitations of this Agreement.

                           (iv) Except as provided in (x), below, once shares of
                  the Stock Award shall vest, Enterprise shall promptly issue to
                  the Executive a certificate for such shares without any legend
                  or restriction (other than may be required by law) and
                  Enterprise shall return to the Executive or shall destroy the
                  related stock power previously executed by the Executive.

                           (v) Shares of Stock held by Enterprise or by a
                  trustee as provided in (x) below, for the account of the
                  Executive prior to distribution to the Executive, may not be
                  sold, assigned, transferred, pledged, hypothecated or
                  otherwise disposed of, except by will or the laws of descent
                  and distribution. Any attempted sale, assignment, transfer,
                  pledge, hypothecation or disposition in contravention of the
                  foregoing shall be null and void and of no effect.

                           (vi) Except as otherwise provided herein, the
                  Executive shall have all of the rights of a stockholder with
                  respect to the shares of the Stock Award issued in his name,
                  including the right to vote the shares, to receive dividends
                  and other distributions thereon and to participate in any
                  change in capitalization of Enterprise. In the event of any
                  change in

                                      -3-

<PAGE>

                  capitalization resulting in the issuance of additional
                  shares to the Executive, such shares shall be subject to the
                  same terms, conditions and restrictions as the shares in
                  respect to which they are issued, and the Executive shall
                  execute and deliver to Enterprise stock powers in respect
                  thereto. If the Executive elects to reinvest dividends on
                  the shares of the Stock Award, or if he shall receive rights
                  or warrants in respect to any shares of the Stock Award, the
                  shares acquired by dividend reinvestment or through the
                  exercise of rights may be held, sold or otherwise disposed
                  of by the Executive, free and clear of any restrictions
                  created by this Agreement.

                           (vii) Unless the shares of the Stock Award to be
                  issued to the Executive have been registered pursuant to a
                  Registration Statement under the Securities Act of 1933, prior
                  to receiving such shares the Executive shall represent in
                  writing to the Company that such shares are being acquired for
                  investment purposes only and not with a view towards the
                  further sale or distribution thereof and shall supply
                  Enterprise with such other documentation as may be required by
                  Enterprise, unless in the opinion of counsel to the Enterprise
                  such representation, agreement or documentation is not
                  necessary to comply with the Securities Act of 1933 and the
                  rules and regulations thereunder.

                           (viii) Enterprise shall not be required to deliver
                  any shares of the Stock Award until they have been listed on
                  each securities exchange on which shares of the Stock are
                  listed or until there has been qualification under or
                  compliance with such state and federal laws, rules or
                  regulations that Enterprise may deem applicable. Enterprise
                  will use its best efforts to obtain such listing,
                  qualification and compliance.

                           (ix) The Compensation Committee may make such
                  provisions and take such steps as it may deem necessary or
                  appropriate for the withholding of any taxes that the Company
                  is required by law or regulation of any governmental
                  authority, whether federal, state or local, domestic or
                  foreign, to withhold in connection with the Stock Award,
                  including, but not limited to (1) withholding delivery of the
                  certificate for shares of Stock until the Executive reimburses
                  the Company for the amount it is required to withhold with
                  respect to such taxes, (2) the canceling of any

                                      -4-

<PAGE>

                  number of shares of Stock issuable to the Executive in an
                  amount necessary to reimburse the Company for the amount it
                  is required to so withhold, or (3) withholding the amount
                  due from the Executive's other compensation.

                           (x) Notwithstanding the foregoing provisions of
                  Section 3(d), the Executive may elect to defer the delivery of
                  any Annual Award that vests under Section 3(d)(ii), provided
                  that the Executive's election is made before January 1 of the
                  year in which the Annual Award vests, in accordance with the
                  terms and conditions imposed by the Company. In the event of
                  such election, the shares of deferred Company Stock shall be
                  issued in the name of a trustee selected by the Company, and
                  the provisions of Section 3(d)(v) shall continue to apply to
                  the shares of Stock held by such trustee. If the Executive
                  defers delivery of the Annual Award beyond the vesting date
                  under Section 3(d)(ii), the Executive shall not be deemed to
                  have, by virtue of his deferral agreement or the establishment
                  of a trust, any claim on any specific assets of the Company or
                  to the assets of such trust, and shall have no rights other
                  than as a general unsecured creditor of the Company with
                  respect to such deferred Annual Award. Subject to the terms of
                  the trust instrument, the trustee holding a deferred Stock
                  Award shall have all of the rights of a stockholder with
                  respect to the shares of the Annual Award issued in its name,
                  including the right to vote the shares, to receive dividends
                  and other distributions thereon and to participate in any
                  change in capitalization of Enterprise.

                           In the event of any Change in Control or change in
                  capitalization resulting in the issuance of additional or
                  different shares to the trustee during the term of the
                  deferral, such shares shall be subject to the same terms,
                  conditions and restrictions as the shares in respect to which
                  they are issued. If the trustee elects to reinvest dividends
                  on shares of Stock held in the Trust, or if the trustee shall
                  receive rights or warrants in respect to any shares of the
                  Stock, the shares acquired by dividend reinvestment or through
                  the exercise of rights shall also be subject to the same
                  terms, conditions and restrictions to the shares with respect
                  to which they are issued, unless otherwise provided in the
                  trust agreement.

                                      -5-

<PAGE>

                                  Ratification
                                  ------------

         All of the provisions of the Employment Agreement not hereby expressly
modified are hereby ratified and affirmed.

         Adopted this 20th day of November, 2001.

                                       --------------------------------
                                       E. James Ferland

                                       PUBLIC SERVICE ENTERPRISE GROUP
                                       INCORPORATED

                                       By
                                          -------------------------------
                                       Raymond V. Gilmartin,
                                       Chairman of the Organization
                                        and Compensation Committee

                                      -6-

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