Document:

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                                                                   Exhibit 10.21
                                                          Facility Number: 82061

                 ADDENDUM TO CONTRACT DEALER GASOLINE AGREEMENT
                    (PAYPOINT NETWORK NON-LESSEE RETAILER)*

     This ADDENDUM, effective _____________ ("Effective Date") is attached to
     incorporated in and made a part of the Contract Dealer Gasoline Agreement,
     dated Sept. 2, 1999, by and between ARCO Products Company, a division of
           -------------
     Atlantic Richfield Company ("Franchisor") and LLO-Gas, Inc. ("Franchisee"),
     the operator of an ARCO location located at 4100 California Ave.,
     Bakersfield, California 93309 ("Facility").

1.   Agreement
     ---------
     Franchisor shall provide PayPoint(R) Network Service ("PayPoint Network")
     to Franchisee.  Franchisee shall perform as provided herein.

2.   Definitions
     -----------
     (a)  The term "PayPoint Network" shall mean those services more fully
     described in Paragraph 3 below.

     (b)  The term "Approval" shall mean that, for a Transaction entered into
     the PayPoint Network, Financial Institution or the PayPoint Network has
     caused a response to be transmitted to Franchisee through the PayPoint
     Network which indicates that the Transaction is approved or, for
     preauthorized transactions, e.g., gasoline purchases, that certain products
                                 ----
     or services may be purchased or performed, e.g. that gasoline may be
                                                ----
     pumped.

     (c)  The term "Denial" shall mean that Financial Institution has caused a
     response to a Transaction to be transmitted through the PayPoint Network
     which indicates that the Transaction is not approved.

     (d)  The term "Working Day" shall mean any day except Saturdays, Sundays
     and any other days on which financial institutions are regularly closed.

     (e)  The term "access card" shall mean an access card issued, directly or
     indirectly, by a participating Financial.  Institution to a Cardholder of
     such Financial Institution. An access card shall have the name of the
     Cardholder encoded and/or embossed thereon and/or a name, number or code
     which identifies such access card as being issued by a Financial
     Institution.

     (f)  The term "Cardholder" shall mean a natural person or entity doing
     banking business with a participating Financial Institution and to whom
     such Financial

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     Institution has issued or proposes to issue an access card. The term
     "Cardholder" includes a natural person or entity purporting to be such
     Cardholder.

     (g)  The term "Transaction" shall mean each use of an access card by a
     Cardholder for the purpose of paying for a purchase of a product or service
     or receiving cash or a refund from Franchisee through use of the PayPoint
     Network to which a participating Financial Institution responds with an
     approval or denial code.

     (h)  The term "deposit account" shall mean the checking, savings and/or
     other account of Cardholder at a participating Financial Institution that
     is accessible via an access card.

     (i)  The term "PayPoint Account(s)" shall mean the accounts at
     participating Financial Institutions or participating networks to which
     funds from Cardholders' deposit accounts shall be transferred.  These funds
     so transferred shall be used to credit Retailer's Accounts.

     (j)  The term "Retailer's Account" shall mean the account maintained by
     Franchisee at a financial institution that is a member of the Cal-Western
     Automated Clearing House Association or the National Automated Clearing
     House Association and named by Franchisee on Exhibit C, attached hereto,
     incorporated herein and made a part hereof, as the account into which
     deposits resulting from Cardholder Transactions at Franchisee's location
     are made.

     (k)  The term "POS Terminal," "POS System," or "POS Equipment" shall mean
     the point-of-sale devices) or system used by Franchisee, which must meet
     the communications protocol and criteria of the PayPoint Network.

     (l)  The term "Settlement Day" shall mean any day excluding weekends and
     the following holidays: New Year's Day, President's Day, Memorial Day,
     Independence Day, Labor Day, Thanksgiving Day and Christmas Day as well as
     any other days on which the Settlement Banks) are closed.

     (m)  The term "participating Financial Institution," "Financial
     Institution," or "Network" shall mean the financial institutions, networks
     or Members or Affiliates of participating networks which execute agreements
     with Franchisor to participate in or provide services through the PayPoint
     Network.

3.   PayPoint Network Description
     ----------------------------
     The PayPoint Network shall enable Cardholders to receive cash or to pay for
     purchases of products and services by means other than cash, money order or
     check.  Each Cardholder shall use an access card to initiate a Transaction.
     Franchisee shall promptly honor all valid access cards when presented by
     Cardholders and shall treat Cardholders from all participating Financial
     Institutions
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     equally.  Franchisee shall use a POS Terminal and may also use
     one or more Island Card Reader devices ("ICR Device") that are in
     communication with the PayPoint Network computer facility(ies).

     When the Cardholder's access card is inserted in the POS Terminal or ICR
     Device, information encoded on the magnetic stripe on the reverse of the
     access card shall be read by a magnetic stripe reader.  The Cardholder
     shall enter his or her Personal Identification Number ("PIN") on a key pad.
     The encoded information, the encrypted PIN, the purchase amount or
     preauthorization request, and such other data regarding the Transaction as
     Franchisor may reasonably require, shall be transmitted from the POS
     Equipment to the Pay Point Network computer facility(ies) and from the
     PayPoint Network computer facility(ies) to a participating Financial
     Institution.  Financial Institution shall respond with either an approval
     or denial for the requested Transaction.

     With certain types of POS equipment, certain purchases, e.g. gasoline, may
                                                             ----
     be preauthorized by the participating Financial Institution before any
     product or service is purchased or performed; the actual purchase amount
     shall be transmitted to the

     Financial Institution after the Cardholder has obtained such product or
     service.  It is understood and agreed that the actual purchase amount shall
     be no more than the amount preauthorized.

     The final purchase amount shall subsequently be debited form the
     Cardholder's deposit account and credited to the Retailer's Account via the
     PayPoint Account(s). Franchisee shall not permit anyone to complete a
     .Transaction unless Franchisee has received approval through the PayPoint
     Network.

4.   Rent
     ----
     Commencing on the Effective Date, if this is a subsequent PayPoint
     Agreement between Franchisee and Franchisor, or the Commencement Date, as
     defined below, if this is the initial PayPoint Agreement between Franchisee
     and Franchisor or, where applicable, the first day of the thirteenth month
     following the Commencement Date, Franchisee shall pay to Franchisor, for
     participation in the PayPoint Network, transaction fees in the amount set
     forth on Exhibit A, which is incorporated herein, made a part hereof and
     attached hereto.  Such fees shall be due and payable to Franchisor on or
     before the tenth day of the month following the month in which such fees
     were incurred during the term of this Addendum. Provided, however, that if
     Franchisee installs and ICR device at the Facility prior to the
     Commencement Date and operates it thereafter, Franchisee shall pay no fees
     for participation in the PayPoint Network for the first twelve months
     following the Commencement Date and 50% of the applicable fees for the
     balance of the term of this Agreement.  The term "Commencement Date" shall
     mean the date on which

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     the first "live" Transaction, that is, a Transaction involving a Cardholder
     at the Facility, is provided to Franchisee through the PayPoint Network.

     Commencing on the Effective Date, if this is a subsequent PayPoint
     Agreement between Franchisee and Franchisor or, if this is the initial
     PayPoint Agreement between Franchisee and Franchisor, on the Commencement
     Date, and thereafter on or before the first day of each month during the
     term of this Addendum, Franchisee shall also pay Franchisor telephone line
     charges set forth on Exhibit A. It is understood that if Franchisee's
     product agreements) with Franchisor expires within the first twelve months
     following the Commencement Date and Franchisee and Franchisor execute a new
     Addendum to Contract Dealer Gasoline Agreement (PayPoint Network Non-Lessee
     ARCO Retailer) and Franchisee has installed and is operating an ICR Device
     and is therefore eligible for the waiver of transaction fees as set forth
     above, Franchisee shall pay no transaction fees for participation in the
     PayPoint Network for the number of months remaining of the original twelve
     month waiver period following the original Commencement Date referred to in
     this Addendum.

     If Franchisor terminates this Addendum at any time during the term of this
     Addendum for cause or because Franchisee has been designated a Special
     Retailer as described in Paragraph 14, or if Franchisee elects to terminate
     this Addendum at the end of the thirteenth month following the Commencement
     Date, as provided below for Franchisees on their initial PayPoint
     agreement, Franchisee shall pay Franchisor as set forth on Exhibit D,
     attached hereto, incorporated herein and made a part hereof, for
     disconnection and removal of telephone lines. Franchisee agrees to pay
     promptly when due and to hold Franchisor harmless from all fees, and sales,
     use, rental, gross receipts, inventory, excise, income and any other taxes
     (including interest, penalties, and additions to tax) imposed by any
     federal, state or local governmental authority upon Franchisee or
     Franchisor (except those taxes based upon or measured by the net income of
     Franchisor) in connection with any payments made pursuant to this Addendum.
     Franchisee agrees to pay promptly when due and to hold Franchisor harmless
     from all sales or use taxes and other similar taxes (including interest,
     penalties and additions to tax) imposed upon or with respect to charges or
     the use of any loaned property. Franchisee shall furnish to Franchisor,
     promptly upon request, any documentation, which in Franchisor's discretion
     is required to evidence the payment of any tax, including, but not limited
     to, official receipts of the appropriate taxing authorities, copies of tax
     returns and canceled checks.

     If this is the initial PayPoint agreement between Franchisee and
     Franchisor, on the first day of the thirteenth month following the
     Commencement Date, Franchisee shall have the option, upon giving Franchisor
     at least 30 days prior written notice, to terminate this Addendum; to
     downgrade the number of PayPoint Electronic Cashiers (Island CardReaders),
     if applicable; to downgrade to the Paypoint Cashier

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     only (ARCOmatic terminal), if applicable; or the downgrade to the PayPoint
     Authorization Terminal (low end terminal device). Any downgrading of
     equipment is at Franchisee's sole cost and expense.

5.   Security
     --------
     Franchisee shall require each Cardholder to enter his or her PIN on the POS
     Equipment at the Facility in order to initiate a Transaction, except to
     complete Preauthorized Transactions.  All Cardholder PINs transmitted to
     Franchisor must be encrypted at the POS Terminal or ICR Device where the
     PIN is entered and must remain encrypted from such point of entry
     throughout the PayPoint Network. After completion of the Transaction, no
     PINS shall be retained by Franchisee. Franchisee agrees to take all
     precautions Franchisor may reasonably require to ensure security of data
     transmitted between the Franchisee location and participating Financial
     Institutions and in no event shall Franchisee permit PINS to be transmitted
     "in the clear."

6.   Transaction Approval or Denial
     ------------------------------
     It is understood that participating Financial Institutions have sole
     discretion to give approval or denial to Transactions requested by
     Franchisee and a Cardholder. Franchisee agrees to draw no positive or
     negative inference about a Cardholder from a participating Financial
     Institution's approval or denial.

7.   Access to Franchisee Location; Promotion and Evaluation of PayPoint Network
     ---------------------------------------------------------------------------
     Franchisee agrees to provide reasonable access to the Franchisee location
     to Franchisor's employees, agents and contractors and, if accompanied by
     Franchisor's employees, agents or contractors, to participating Financial
     Institutions. Franchisee acknowledges that Franchisor and participating
     Financial Institutions, shall require access to install and test the
     PayPoint Network Service and equipment, to demonstrate PayPoint Network
     Services to Cardholders, to study Cardholder use of the PayPoint Network
     and to ensure Franchisee's compliance with this Addendum.

     To the extent permitted by law, Franchisee agrees to place, at the
     Franchisee location, promotional and other materials provided by
     Franchisor.  Franchisee agrees further to cooperate with Franchisor in it
     efforts to promote and evaluate the PayPoint Network.

8.   Interruption of Service
     -----------------------
     Franchisor and Franchisee shall cooperate to resolve any system malfunction
     or problem that interrupts normal operation of the PayPoint Network.
     Franchisor shall provide instructions and procedures for the handling of
     Transactions that are initiated when communications between Franchisor, the
     participating Financial Institutions and the Franchisee location are
     interrupted.  Franchisee shall
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     immediately notify Franchisor's Maintenance Department if there is an
     interruption of the PayPoint Network.

9.   Cardholder Refund or Reversal/Void Transactions
     -----------------------------------------------
     Cardholder refund transactions shall not be processed electronically, but
     shall be processed by refunding cash or otherwise reimbursing the
     Cardholders.  Receipts shall be made available to Cardholders in accordance
     with Paragraph 10 of this Addendum for all such Transactions.

10.  Receipts
     --------
     For each Transaction approved through the PayPoint Network, Franchisee
     shall make a receipt available to the Cardholder.  The receipt shall
     contain all information required by Federal Reserve Board Regulation E or
     other applicable laws and regulations.  Receipts shall include the
     following information: Cardholder's access card number, name and location
     of the Facility, date, time, amount of Transaction, type of Transaction
     (payment), type of account to or from which funds are transferred (unless
     only one type of account may be accessed), Franchisor assigned transaction
     or trace number and/or Financial Institution assigned reference number if
     the Transaction has been transmitted to Financial Institution, and, if
     applicable, any Transaction Fee.

     Franchisee understands and agrees that portions of this Addendum are for
     the benefit of participating Financial Institutions and therefore, if
     Franchisee breaches some of the terms and conditions of this Addendum,
     including but not limited to:

     (a)  breaches of the Receipt provisions of this Paragraph 10;

     (b)  breaches of the Cardholder Dispute provisions of Paragraph 11 of this
     Addendum;

     (c)  initiation or attempt to initiate by Franchisee or its agents or
     employees unauthorized transactions;

     (d)  uses of any participating Financial Institution's name or marks or
     references to any participating Financial Institution in any advertising,
     point of purchase material, news release or trade publication without
     Franchisor's prior written consent or the sublicense or attempt to
     sublicense Franchisee's right to use such name or marks after receiving
     such consent;

     (e)  failure to display, to the extent permitted by law, promotional and
     other materials as required by Paragraph 7 of this Addendum or failure to
     cease using and return any such materials should any participating
     Financial Institution withdraw from PayPoint Network participation:
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     (f)  drawing a positive or negative inference about a Cardholder from a
     participating Financial Institution's approval or denial in breach of the
     provisions of Paragraph 6 of this Addendum;

     (h)  failure to follow the PayPoint Network procedures set forth in
     Paragraph 3 of this Addendum;

     (i)  breaches of the Confidentiality/Non-Disclosure provisions of Paragraph
     16 of this Addendum;

     (j)  breaches of the Security provisions of Paragraph 5 of this Addendum;
     or

     (k)  breaches of the indemnification provisions of Paragraph 15 of this
     Addendum.

     Franchisor or participating Financial institution(s) shall have the right
     to name Franchisee a "Special Retailer" and to recover from Franchisee for
     the amount of all claims, liability, losses and expenses, notwithstanding
     any limits contained in Paragraph 15 of this Addendum, and (including,
     without limitation, attorneys fees) asserted against or incurred by
     Franchisor or such Financial Institutions) as a result of such breach.
     Such right to recover an the part of Franchisor or participating Financial
     Institutions shall include the right to debit the Franchisee's Trade
     Statement or electronically debit Retailer's Account, if Franchisee has not
     forwarded such amount to Franchisor within a period of time specified in a
     notice to the Franchisee.  Such third party beneficiary rights shall be
     enforceable against Franchisee despite any defenses Franchisee may have
     against Franchisor.

     Furthermore, Franchisee understands and agrees that a breach of this
     Addendum may be grounds for termination/non-renewal of the Contract Dealer
     Gasoline Agreement.

11.  Resolution of Disputes
     ----------------------

     (a)  Cardholder Disputes
          -------------------
     Franchisee acknowledges that participating Financial Institutions are
     required by Federal law to resolve errors asserted by Cardholders, and to
     provide documentation requested by Cardholders, within certain time limits.
     Franchisee agrees to cooperate with Franchisor and participating Financial
     Institutions to resolve Cardholder disputes or inquiries about PayPoint
     Network Transactions.  To facilitate resolution of Cardholder disputes,
     Franchisee shall retain, for a period of at least one hundred eighty (180)
     days, copies of receipts issued to Cardholders pursuant to Paragraph 10 of
     this Addendum, or reports from which Transaction information can be
     retrieved.  In response to an oral request by Franchisor or a participating
     Financial Institution, to be confirmed in writing, Franchisee shall, within
     three (3) Working Days of the oral request, send documentation to
     Franchisor or to
<PAGE>

     such Financial Institution, as instructed by Franchisor, showing requested
     receipt information for any Transaction that occurred within the previous
     one hundred eighty (180) days. If Franchisee fails to provide the requested
     information within three (3) Working Days, Franchisor shall, at the request
     of the participating Financial Institution, debit Franchisee's Trade
     Statement or electronically debit the Retailer's Account, for the amount
     disputed by the Cardholder and credit, through the participating Financial
     Institution, the Cardholder's deposit account for the amount disputed. The
     obligations of this Paragraph 11 shall survive termination of this
     Addendum. Detailed procedures for customer dispute resolutions are
     incorporated herein, made a part hereof and attached hereto as Exhibit B.

     (b)  Franchisee Disputes
          -------------------
     Franchisee agrees to review all Franchisee Account Statements and
     Management Reports (including journal tapes, daily sales reports and
     Management Report Printer tapes) and, within 60 days of a Transaction, to
     notify the PayPoint Network computer facility(ies) by telephone, to be
     confirmed immediately in writing, of any errors, discrepancies or disputes
     that Franchisee has concerning such Transaction. Neither Franchisor nor
     participating Financial Institutions shall be liable for errors,
     discrepancies or disputes of which Franchisee fails to notify Franchisor
     within such 60 day period.  If the resolution of the error, discrepancy or
     dispute by Franchisor or a participating Financial Institution involves a
     credit to Franchisee, Franchisor shall pay Franchisee such credit by check.

     (c)  Disputes Over-Merchandise or Service
          ------------------------------------
     Franchisee shall handle all disputes over quality of merchandise or
     services purchased from Franchisee by Cardholders directly with Cardholders
     and shall indemnify and hold Franchisor and participating Financial
     Institutions harmless from any claim, action, damage or expense, including
     strict liability in tort, arising out of such disputes or the sale of goods
     or services by Franchisee; provided, however, to the extent Franchisee's
     petroleum or non-petroleum franchise agreements, if any, are contrary to
     this provision as to Franchisor, such petroleum or non-petroleum franchise
     agreement shall be controlling as to Franchisor.

12.  Transaction Error Resolution
     ----------------------------
     In certain unusual circumstances, Retailer's Account may be erroneously
     credited with an amount for a Transaction that did not occur at the
     Franchisee location or with a duplicate of an amount of a Transaction or
     fees for which Retailer's Account was previously credited.  In such
     circumstances, Franchisee shall, within three (3) Working Days of receipt
     of an oral request, provide Franchisor with the amount of such erroneously
     credited or duplicate amount.  If Franchisee fails to provide Franchisor
     with such amount, Franchisee agrees that Franchisor shall have the right to
     debit Franchisee's Trade Statement or electronically debit Retailer's
     Account for the amount of such erroneously credited or duplicate amount so
     that Franchisor may properly credit the Cardholder or other retailer's
     account.
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13.  Settlement: Settlement Reporting
     --------------------------------
     Franchisor shall process all approved Transactions captured each Settlement
     Day and any preceding non-Settlement Day and make arrangements for the
     funds to which Franchisee is entitled to be deposited into his or her
     Retailer's  Account.

     Deposit and Transaction totals shall be made available to Franchisee by way
     of the POS Terminal, if possible; otherwise, by way of, written reports.
     Franchisor shall also mail to Franchisee, on request, summary reports of
     PayPoint Network Transactions at the Facility.

14.  Term: Termination
     -----------------
     Except as otherwise provided in this Addendum, PayPoint Network Service
     shall be provided from the Effective Date or, where applicable, the
     Commencement Date until the termination or expiration of Franchisee's
     Contract Dealer Gasoline Agreement with Franchisor.  The Commencement Date
     shall be set forth in a notice from Franchisor to Franchisee.

     Franchisor may terminate this Addendum for any reason upon at least ninety
     (90) days advance written notice to Franchisee.  For cause, Franchisor may
     terminate this Addendum immediately upon giving written notice to
     Franchisee.  In addition, Franchisor may, at its sole option, terminate
     Franchisee's ability to accept access cards from certain participating
     Financial Institutions or terminate this Addendum or the Contract Dealer
     Gasoline Agreement immediately if a Financial Institution notifies
     Franchisor that it has designated Franchisee as a "Special Retailer," i.e.,
     a Franchisee that Financial Institution has reason to believe has
     originated unauthorized Transactions to a Cardholder's deposit accounts or
     a Franchisee from whom an excessive number of Transactions are ultimately
     subject to chargeback, that is, debit of Franchisee's Trade Statement as
     more fully described in Paragraph 10 of this Addendum or a Franchisee who
     violated or failed to comply with the Security provisions referred to in
     Paragraph 5 of this Addendum.  On the first day of the thirteenth month
     following the Commencement Date, Franchisee may terminate this Addendum for
     any reason upon at least thirty (30) days advance written notice to
     Franchisor.  In the event of termination, Franchisee shall return to
     Franchisor all instructional and promotional material Franchisor has
     provided for use with the PayPoint Network and shall cease to use and
     display the "Marks" as defined in Paragraph 17a and participating Financial
     Institutions' trademarks, trade names and trade indicia and shall remove
     all decals and signs indicating Franchisee's participation in the PayPoint
     Network and, if Franchisee is terminated for cause or because he/she has
     been designated a Special Franchisee, Franchisee shall pay the applicable
     amount set forth on Exhibit D.

     In the event Franchisee refuses to, or is unable to return the material
     and/or to cease use and display, then Franchisor shall have the right to
     enter Franchisee's
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     Facility and remove all such material, decals, and signs, and Franchisee
     agrees to pay the costs therefor.

15.  Indemnification
     ---------------
     Each party shall indemnify the other and hold it harmless and Franchisee
     shall indemnify participating Financial Institutions from any claim,
     action, damage or expense of any kind arising solely from fault or neglect
     of the indemnifying party, including but not limited to claims of
     infringement of any patent, copyright, trade secret or other proprietary
     right in the operation of the PayPoint Network.  Neither party shall be
     liable to the other for any special, indirect or consequential damages,
     including but not limited to lost profits, even if the parties have
     knowledge of the possibility of such damages.

     Franchisee shall indemnify, hold harmless and defend Franchisor and
     participating Financial Institutions from and against all claims, losses,
     costs, damages, liabilities, and expenses (including reasonable attorneys'
     fees) which are suffered as a result of any Transaction or attempted
     Transaction and arise out of:

     (a)  Personal injury or tangible property damage suffered or incurred by
     any person on Franchisee's premises;

     (b)  Negligence or fraudulent conduct of Franchisee, Franchisee's agents
     and employees and independent contractors;

     (c)  Unauthorized entry of data into the PayPoint Network or any Financial
     Institution's debit card system/network by Franchisee from any point in the
     PayPoint Network including the data communication link connecting the
     PayPoint data processing facility(ies) and any Financial Institution's
     debit card system/network, and POS equipment;

     (d)  Unauthorized receipt of data from any Financial Institution's debit
     card system/network by Franchisee from any point in the PayPoint Network
     including the data communication link connecting the PayPoint data
     processing facility(ies) and any Financial Institution and POS Equipment;

     (e)  Disputes over Franchisee's sale or lease of goods or services; or

     (f)  Failure of Franchisee, its employees, agents and its independent
     contractors to comply with this Addendum, or with applicable federal,
     state, or local laws, rules or regulations.

     However, Franchisee shall not be liable for the failure by any Financial
     Institution to discover a Technical Error, originated by Franchisee.
<PAGE>

16.  Confidentiality: Nondisclosure
     ------------------------------
     Franchisee acknowledges that all information that is disclosed to, or comes
     to the attention of Franchisee for purposes of the development or operation
     of any aspect of the PayPoint Network (herein "Information") is strictly
     confidential.  Franchisee agrees that Franchisee shall not use for any
     purpose other than Franchisee's use of the PayPoint Network or disclose
     said Information or knowingly permit Franchisee's employees or contractors
     to disclose said Information to any person outside Franchisor and
     Franchisee, or to any employee or contractor of Franchisor or Franchisee
     who does not have a specific need to know in performance of work hereunder.

     Franchisee acknowledges that participating Financial Institutions have a
     responsibility to their Cardholders to keep all records pertaining to
     Cardholders' banking transactions (herein "Cardholder Information")
     strictly confidential. Franchisee shall maintain the confidentiality of
     Cardholder Information.

     This paragraph shall not prevent the participating Financial Institutions
     from disclosing to their Cardholders information about such Cardholders'
     individual transactions.

     Franchisor agrees to use reasonable care to avoid disclosure of information
     relating to sales by Franchisee (herein "Sales Information") other than to
     Financial Institutions and other third parties who require access to Sales
     Information for purposes relating to Franchisee's use of or Franchisor's
     operation of the PayPoint Network.  Franchisor's obligation of non-
     disclosure shall not apply to any Sales Information which is or becomes
     available to the public other than through breach of this Addendum by
     Franchisor.  It is presently Franchisor's policy (which may be changed at
     any time by Franchisor at its sole option without notice) to destroy all
     records of Sales Information after two (2) years.  Franchisor's obligation
     of non-disclosure with respect to Sales Information shall terminate upon
     destruction of such Sales Information.

     The obligations of this Paragraph 16 shall survive termination of this
     Addendum.

17.  Service Mark License
     --------------------
     (a)  PayPoint, PayPoint Electronic Cashier, PayPoint Cashier, PayPoint
     Network, PayPoint and "Triangle" design, Electronic PayPoint, and the
     "Triangle" Design (hereinafter called "Marks") are service marks of
     Franchisor.

     (b)  During the term of this Addendum, Franchisor grants to Franchisee for
     use at Franchisee's Facility a non-exclusive license and right to use the
     marks in connection with the PayPoint Network as defined in Paragraph 3,
     but only so long as such services are performed using equipment approved by
     Franchisor and such equipment is maintained in good operating order and is
     operated in accordance with
<PAGE>

     Franchisor's training program and guidelines as promulgated from time to
     time by Franchisor.

     (c)  Franchisor shall have the right at all time to enter Franchisee's
     Facility for the purpose of inspecting the equipment used with the PayPoint
     Network, and to satisfy itself that services are being provided to the
     public according to Franchisor's standards.

     (d)  During the term of this Addendum, Franchisee shall be permitted to use
     and display the marks and other names and trade indicia used or authorized
     for use by Franchisor in connection with the PayPoint Network, but only in
     accordance with standards as set forth from time to time by Franchisor for
     the type of facility Franchisee is operating.  Franchisee shall only be
     permitted to use or display names, marks, symbols, or trade indicia
     belonging to participating Financial Institutions in conjunction with
     PayPoint equipment or on advertising upon Franchisor's prior approval, and
     such use and display is subject to whatever restrictions Franchisor or such
     institutions may prescribe.

     (e)  Franchisor expressly reserves the right to change, alter, modify, or
     withdraw the Marks, or any of them including the PayPoint name, at any time
     by giving Franchisee not less than thirty (30) days prior written notice
     thereof.  In the event of such change, alteration or modification,
     Franchisee agrees that it shall henceforth not use the mark or name which
     has been changed, altered, modified, or withdrawn. In the event the
     PayPoint name is changed, altered, modified, or withdrawn by Franchisor, it
     is agreed that the new name or Mark shall be substituted for "PayPoint
     Network" as it appears in this Addendum.

     (f)  Franchisee recognizes Franchisor's ownership and title to the Marks
     and shall not claim adversely to Franchisor any right, title, or interest
     thereto.  Particularly, Franchisee agrees, during and after the term of
     this Addendum, not to use, register or attempt to register as a trademark
     or as a trade or corporate name, or aid any third party in registering or
     attempting to register, any of the Marks or any marks, names, or symbols
     confusingly similar thereto, or incorporating one or more of the words in
     such marks or names as trademarks or service marks, or as trade or
     corporate names.

     (g)  All use of the Marks by Franchisee shall inure exclusively to the
     benefit of Franchisor and Franchisor may utilize such use in registering or
     defending such Marks.  Franchisee agrees to cooperate with Franchisor in
     providing evidence or testimony relative to or supporting Franchisee's use
     of said Marks.  Any registrations obtained by Franchisee contrary to
     Section (f) shall be held in trust for Franchisor and assigned by
     Franchisee to Franchisor upon Franchisor's request.
<PAGE>

     (h)  Upon termination of this Addendum or the Contract Dealer Gasoline
     Agreement, the undertakings and duties of Franchisee in Sections (f) and
     (g) shall survive and Franchisee shall cease using and remove the Marks and
     any names, marks, symbols, or trade indicia of participating Financial
     Institutions as set forth in Paragraph 14 of this Addendum.

18.  Force Majeure
     -------------
     No failure, delay or default in performing any obligation hereunder shall
     constitute default or breach of this Addendum to the extent that it arises
     from causes beyond the control and without fault or neglect of the party
     otherwise chargeable with failure, delay or default, including but not
     limited to:  action or inaction of governmental, civil or military
     authority; strike, lockout or other labor dispute; war, riot or civil
     commotion; theft, fire, flood, earthquake, natural disaster; or default of
     a common carrier.

     The party wishing to rely on this paragraph to excuse failure, delay or
     default shall, when the cause arises, give the other party prompt written
     notice of the facts constituting same, and when the cause ceases to exist,
     give prompt notice to the other party.

19.  Assignment
     ----------
     Franchisee shall not assign any of its rights or delegate any of its
     obligations pertaining to the PayPoint Network without the prior written
     consent of Franchisor. Any assignment or delegation made without such prior
     written consent shall be void and any assignment or delegation to which
     Franchisor consents must be in conjunction with an assignment of the
     Contract Dealer Gasoline Agreement.

20.  Prices Goods and Services
     -------------------------
     No provision of this Addendum shall be construed as an agreement by
     Franchisor or participating Financial Institutions to the retail prices
     charged or the quantity or quality of goods sold or services rendered by
     Franchisee to Cardholders or to customers of Franchisee.

21.  Independent Contractor
     ----------------------
     Franchisor and Franchisee are independent contractors with respect to the
     subject matter of this Addendum and neither party nor its employees shall
     be deemed for any purpose to be the agent, employee, servant or
     representative of the other with respect to the subject matter of this
     Addendum.

IN WITNESS WHEREOF, the parties have executed this Addendum, or caused it to be
executed on their behalf on the dates indicated below.

ARCO Products Company,                     Franchisee
a division of AtlanticRichfield Company

/s/ Connie Carroll             9/2/99      /s/ John Castellucci          9-29-99
-------------------------------------      -------------------------------------
                                 Date      LLO-Gas, Inc.                    Date

/s/ Hollie Johnson             9/2/99      /s/ Denise Newton             9-29-99
-------------------------------------      -------------------------------------
Witness                          Date      Witness                          Date

<PAGE>

                  ARCO Contract Dealer/Distributor
______________________________________________________________________
PayPoint Network Fees

     Transactions per Month                   Fee per Transaction

           0 to 1,000                                 $.10
       1,001 to 2,000                                  .08
       2,001 to 3,000                                  .06
       3,001 to 4,000                                  .04
           Over 4,000                                  .02

     Minimum Monthly Charge = $60.00

     There will be no transaction fee during the first 12 months following the
     Commencement Date if Retailer installs a PayPoint Electronic Cashier(R),
     purchased through ARCO, at the pump island.

Phone Line Fee Options:

     Leased Line -- $100 per month plus any phone company pass-through costs
     including installation for each dedicated line or Dial Line -- installation
     costs plus monthly phone charge including per item phone calls.

Billing and Payment Terms:

Unless Retailer is entitled to 12-month waiver of the fee as set forth above, a
fee will be charged for each Transaction.  By the twentieth day of the following
month, Retailer will be issued an invoice for:  the total transaction times the
fee per transaction for the tier achieved; the monthly phone line fee; and any
portion of the monthly minimum not achieved.  Invoices are payable upon receipt.

If Retailer's Contract Dealer or Distributor Agreement expires and is not
renewed or is canceled prior to the expiration of the PayPoint Retailer
Agreement, the PayPoint Agreement will be canceled or, at ARCO's option, can be
converted to a Non-ARCO PayPoint Retailer Agreement.

Transaction Definition:

A "Transaction" means each use of an access card by a Cardholder for the purpose
of paying for a purchase of a product or service or receiving cash, scrip, a
refund or a reversal/void from Retailer's Facility through use of the PayPoint
Network to which a participating Financial Institution responds with an Approval
or Denial code.
<PAGE>

                                   EXHIBIT B

                   Retailer Resolution of Cardholder Disputes
                   ------------------------------------------

PayPoint Network

     A cardholder dispute is initiated when a financial institution is notified
of its cardholders complaint.  If a cardholder informs a Franchisee that a
problem exists with a transaction made at the retail facility prior to the date
of the complaint, the Franchisee should inform the cardholder that the complaint
should be taken to the cardholder's financial institution.  All resolutions must
originate at the cardholder's financial institution.

     Examples of complaints:

     a)   Cardholder was charged twice for a purchase.

     b)   Cardholder never made the purchase, he/she was billed far by his/her
          financial institution.

Procedure for resolution of cardholder complaints by the PayPoint Network:

     1)   Cardholder disputes a transaction and notifies financial institution.

     2)   Financial institution then notifies the Franchisor switch of the
          problem.

     3)   The switch researches its records and makes every effort to find the
          disputed transaction in order to resolve the problem.

     4)   However, if the switch is unable to find the disputed transaction in
          the records maintained at the switch, the Franchisee will be notified
          via telephone. The switch contact person will provide the Franchisee
          with the data furnished by the financial institution and request a
          copy of the cardholder receipt and/or a copy of the Management Report
          Printer (MRP) report showing the disputed transaction information.

     5)   This telephone request will be immediately followed by a written
          request - a copy of the PayPoint Network Retailer Transaction
          Information Request form containing all the required transaction
          information. This form will be mailed to the Franchisee within one (1)
          working day of the telephone call. A copy of this form is attached.

     6)   The Franchisee will have only three (3) working days after receipt of
          the request to research the transaction and send the requested
          information to the financial institution listed on the form.
<PAGE>

     7)   The Franchisee is subject to chargeback of the transaction amount in
          question if the requested information is not sent within three (3)
          working days.

     8)   The Franchisee must send a copy of the completed PayPoint Network
          Retailer transaction Information Request form along with a copy of the
          customer receipt and/or MRP report (the same information furnished to
          the financial institution) to the Franchisor switch within one (1)
          working day of sending the information to the financial institution.
<PAGE>

                                   EXHIBIT C

                 PayPoint Network Retailer Account Designation*
                 ----------------------------------------------

RETAILER:
________________________________________________________________________________

ADDRESS:
________________________________________________________________________________

CITY:
________________________________________________________________________________

STATE/ZIP CODE:
________________________________________________________________________________

I HEREBY AUTHORIZE ARCO PRODUCTS COMPANY, A DIVISION OF ATLANTIC RICHFIELD
COMPANY, TO CREDIT THE ACCOUNT** DESCRIBED BELOW FOR SETTLEMENT PURPOSES FOR
SERVICES PROVIDED THROUGH THE ARCO PAYPOINT NETWORK.

THE ACCOUNT TO WHICH SUCH CREDITS SHOULD BE APPLIED IS

ACCOUNT NO._____________________________________________________________________

AT______________________________________________________________________________

BRANCH NO.______________________________________________________________________

                                      PAYPOINT NETWORK RETAILER

                                      BY:
                                            ____________________________________

                                      TITLE:
                                            ____________________________________

                                      DATE:
                                            ____________________________________

*  If Retailer has different Retailer's Accounts for its Retailer's Facilities,
an Exhibit C must be completed for each different Facility.

**FINANCIAL INSTITUTION MUST BE A MEMBER OF NACHA.
<PAGE>

                               PAYPOINT NETWORK

                   Retailer Transaction Information Request
                   ----------------------------------------

CLAIM NO.:
          ----------------------------------------------------------------------
DATE CLAIM RECEIVED:
                    ------------------------------------------------------------
TODAY'S DATE:
             -------------------------------------------------------------------

A dispute has been filed by a cardholder regarding the following transaction:

FI CARD NO.:
            --------------------------------------------------------------------
TRANSACTION AMOUNT:                  TRANSACTION DATE:
                   ----------------                   --------------------------

TRANSACTION TIME:                    REFERENCE NO.
                 ------------------                -----------------------------

Please return a copy of cardholder receipt or management report printer (MRP)
report showing requested financial data within three (3) working days to:

FINANCIAL INSTITUTION:
                      ----------------------------------------------------------

ADDRESS:
        ------------------------------------------------------------------------
--------------------------------------------------------------------------------

CONTACT PERSON:
               -----------------------------------------------------------------
YOU ARE SUBJECT TO CHARGEBACK OF TRANSACTION AMOUNT IN QUESTION IF "REQUESTED
INFORMATION" IS NOT SENT WITHIN THREE (3) WORKING DAYS
                         -----------------------------

Franchisee:
Return a copy of this form along with copy of cardholder receipt and/or MRP
report to:

NAME:
      --------------------------------------------------------------------------

ADDRESS:
        ------------------------------------------------------------------------
--------------------------------------------------------------------------------

DATE INFORMATION SENT TO FINANCIAL INSTITUTION:
                                               ---------------------------------
<PAGE>

                                   EXHIBIT D

                           POS and Remote Equipment
                           Disconnection and Removal
                                 Fee Schedule
                                 ------------

Telephone Line Disconnection                         $200.00

Each Inside Terminal Disconnection and Removal       $200.00

Each Outside Terminal Disconnection and Removal      $400.00<PAGE>

                                                                   EXHIBIT 10.22

             AGREEMENT FOR SALE OF REAL ESTATE TO CONTRACT DEALER

Sale of Facility No.:  05502
Dated (for identification):  September 2, 1999
                             -----------

     This Agreement for Sale of Real Estate to Contract Dealer (this
"Agreement") is entered into by LLO-GAS, INC., a Delaware corporation ("Buyer"),
and ATLANTIC RICHFIELD COMPANY, a Delaware corporation ("Seller").

                                 RECITALS
                                 --------

     A.  Seller owns the land and improvements that are included in the Real
Estate (as defined in Section 1).  Prestige Stations, Inc. ("PSI"), a Delaware
corporation and a wholly owned subsidiary of Seller, operates an ARCO retail
gasoline station and am/pm mini market at the Real Estate.

     B.  Seller wishes to sell to Buyer, and Buyer wishes to buy from Seller,
the Real Estate.

     C.  At the same time that Buyer and Seller sign this Agreement, Buyer and
PSI will sign an Agreement for Sale of Business to Contract Dealer (the
"Business Agreement") for Buyer's purchase of PSI's interest in certain assets
that PSI uses in connection with the operation of the business at the Real
Estate.

     D.  Buyer and Seller intend to transfer ownership of the Real Estate on the
day that Buyer becomes the owner of the assets covered by the Business
Agreement.

     E.  At the same time that Buyer and Seller sign this Agreement, Buyer and
Seller will sign five Agreements for Sale of Real Estate to Contract Dealer (the
"Companion Real Estate Agreements") for Buyer's purchase of the Companion Real
Estate (as defined in Section 1).

     F.  At the same time that Buyer and Seller sign this Agreement, Buyer and
PSI will sign five Agreements for Sale of Business to Contract Dealer (the
"Companion Business Agreements") for Buyer's purchase of PSI's interest in
certain assets that PSI uses in connection with the operation of the businesses
at the Companion Real Estate.

                                 AGREEMENT
                                 ---------

          THEREFORE, Buyer and Seller agree as follows:

                                      -1-
<PAGE>

     1.  Basic Provisions.
         ----------------

Seller's Information:      Atlantic Richfield Company
                      4 Centerpointe Drive, LPR 6-184
                      La Palma, California 90623-1066
                      Attn:  Gary Simning
                             Assistant Vice President

                      Telephone: (714) 670-5393
                      Facsimile: (714) 670-5439

                      Taxpayer I. D. No.: 23-0371610

Buyer's Information:       LLO-Gas, Inc.
                      23805 Stuart Ranch Road, Suite 265
                      Malibu, California 90265
                      Attn:  John D. Castellucci

                      Telephone: (310) 456-8494
                      Facsimile: (310) 456-6094

                      Taxpayer I.D. No.: 77-0489023

Real Estate:

     The Real Estate is the real property legally described in the attached
     Exhibit "A".  Seller's interest in the Real Estate is a fee interest in the
     entirety of the Real Estate, except as otherwise stated in Exhibit "A".
     Seller's interest includes the ownership of the improvements that are
     located on or under the land that Seller owns in fee, including without
     limitation underground storage tanks and gasoline pipelines. The principal
     parcel of land included in the Real Estate is commonly known as:

     Street Address:         702 W. Broadway Road
     City, State, ZIP Code:  Phoenix, AZ 85032
     County:                 Maricopa

Companion Real Estate:  The Companion Real Estate is the real property at the
locations (other than the location of the Real Estate) described in the attached
Exhibit "B".

Deposit:            $29,125.00 by Buyer's check payable to Escrow Holder

Purchase Price:     $  1,165,000.00

                                      -2-
<PAGE>

Closing Date:       October 27, 1999
Title Company: Old Republic Title Company
               101 East Glenoaks Boulevard
               Glendale, California 91209
               Attn: Michael Slinger

               Telephone: (800) 228-4853
               Facsimile: (818) 543-6570

Escrow Holder: Citywide Escrow Services, Inc.
               12501 Seal Beach Boulevard, Suite 130
               Seal Beach, California 90740
               Attn: Patricia Cusick
                     Escrow Officer

               Telephone: (562) 799-1490
               Facsimile: (562) 799-1494

               Escrow No.: 18733 PC
               (To be completed by Escrow Holder)

     2.  Purchase and Sale.  Seller agrees to sell to Buyer, and Buyer agrees to
         -----------------
buy from Seller, the Real Estate.  The purchase and sale (the "Transaction")
will be on the terms set forth in this Agreement.

     3.  Acceptance by Buyer.  To accept this Agreement, Buyer must deliver the
         -------------------
following items to Seller within 10 business days after Buyer receives this
Agreement:  (i) This Agreement signed by Buyer, (ii) Buyer's check payable to
Escrow Holder as named in Section 1 in the amount of the Deposit as set forth in
Section 1, and (iii) written proof that Buyer has, or will have, sufficient
funds to complete the Transaction.  This proof must consist of evidence showing
that (i) Buyer has sufficient cash or other liquid assets to complete the
Transaction or (ii) Buyer has submitted to an institutional lender a fully
completed application for a loan in an amount sufficient to complete the
Transaction. Buyer must deliver these items to Seller at the same time that
Buyer delivers to PSI the items required by Section 3 of the Business Agreement.

     4.  The Deed:  Mineral Reservation.  Seller shall convey the Real Estate to
         --------
Buyer by a Special Warranty Deed (the "Deed").  In the Deed, Seller will reserve
the rights, below the depth of 500 feet, to minerals and oil, gas, and other
hydrocarbon substances in and under the land being sold, but without the right
of surface entry.

     5.  Purchase Price.
         --------------

                                      -3-
<PAGE>

          5.1  Amount.  The Purchase Price for the Real Estate is the amount set
               ------
forth in Section 1.

          5.2  Payment.  Subject to the collection of Buyer's check for the
               -------
Deposit, Escrow Holder shall credit the Deposit to the Purchase Price. Buyer
shall pay the balance of the Purchase Price in cash or immediately available
funds at closing.

     6.   Escrow and Closing.
          ------------------

          6.1  Escrow.  Closing will occur through an escrow (the "Escrow") at
               ------
Escrow Holder's office.  After Buyer and Seller have signed this Agreement,
Seller shall deliver a fully signed original of this Agreement and the check for
the Deposit to Escrow Holder.  Escrow will be considered opened on the date that
Escrow Holder signs this Agreement.  This Agreement constitutes joint escrow
instructions to Escrow Holder.  Buyer and Seller shall do all that is reasonably
necessary to close the Escrow.

          6.2  Closing Date.  The Escrow will close on or before the Closing
               ------------
Date as set forth in Section 1, unless the Closing Date is delayed in accordance
with other provisions of this Agreement. But Buyer or Seller may extend the
Closing Date for 20 days if reasonably required for Buyer to obtain the New Beer
and Wine License (as defined in Section 6.3(a) of the Business Agreement).  If
Buyer or Seller wishes to exercise this extension right, it must give an
exercise notice to the other and Escrow Holder at least 10 days before the
initially scheduled Closing Date.  If the Closing Date is so extended, the close
of Escrow will occur on or before the extended Closing Date when all closing
conditions contained in this Agreement have been satisfied or waived.

          6.3  Closing Conditions.  Each party's obligation to complete the
               ------------------
Transaction is contingent on the satisfaction of the following conditions,
unless that party waives the condition before Escrow closes:

          (a)  Related Transactions Ready to Close.  For each of the
               -----------------------------------
               transactions under the Business Agreement, the Companion Real
               Estate Agreements, and the Companion Business Agreements, Seller
               has confirmed that (i) Seller is ready and committed to close
               those transactions or (ii) if the transaction is being handled
               through an escrow, Seller has received notice from the escrow
               holder that the escrow holder is ready and committed to close the
               escrow.

          (b)  Other Closing Conditions.  All closing conditions for that
               ------------------------
               party's benefit contained in provisions of this Agreement other
               than this Section 6.3 have been satisfied, or will be satisfied
               as a part of the closing.

                                      -4-
<PAGE>

          (c)  Other Party's Obligations.  The other party has performed all its
               -------------------------
               obligations under this Agreement to be performed before the
               closing, or will perform those obligations as a part of the
               closing.

     7.   Delivery of Documents and Funds.
          -------------------------------

          7.1  Deliveries by Seller.  At or before the closing, Seller shall
               --------------------
deliver to Escrow Holder the following:

          (a)  Deed.  The Deed, signed and acknowledged by Seller;
               ----

          (b)  Memorandum of Contract Dealer Gasoline Agreement.  The Memorandum
               ------------------------------------------------
               of Contract Dealer Gasoline Agreement (the "Memorandum") referred
               to in Section 6.3(c) of the Business Agreement, signed and
               acknowledged by Seller, through its division ARCO Products
               Company;

          (c)  Withholding Certifications. (i) A Certification of Non-Foreign
               --------------------------
               Person Status with respect to Seller's exemption from federal
               income tax withholding in connection with the Transaction and
               (ii) a comparable certification with respect to Seller's
               exemption from state income tax withholding in connection with
               the Transaction, if the state in which the Real Estate is located
               imposes a withholding requirement on Buyer for income tax that
               Seller might owe to the state in connection with the Transaction,
               each of which certifications must meet the requirements of
               applicable laws and regulations and must be signed by Seller; and

          (d)  Other Documents.  All other instruments and documents reasonably
               ---------------
               required to complete the Transaction.

          7.2  Deliveries by Buyer.  At or before the closing, Buyer shall
               -------------------
deliver to Escrow Holder the following:

          (a) Memorandum.  The Memorandum, signed and acknowledged by Buyer;
              ----------

          (b)  Right of First Refusal Agreement.  The Right of First Refusal
               --------------------------------
               Agreement   (as defined in Section 14), signed and acknowledged
               by Buyer;

          (c)  Environmental Declaration.  The Environmental Declaration (as
               -------------------------
               defined in Section 12), signed and acknowledged by Buyer;

                                      -5-
<PAGE>

          (d)  Cash.  Cash or immediately available funds to pay the balance of
               ----
               the Purchase Price and Buyer's share of closing costs and
               prorations; and

          (e)  Other Documents and Funds.  All other instruments, documents, and
               -------------------------
               funds reasonably required to complete the Transaction.

          7.3  Recording. As part of the close of Escrow, Escrow Holder shall
               ---------
               record the Memorandum, the Right of Refusal Agreement, the Option
               Agreement, and the Environmental Declaration. These documents
               must be recorded before any documents benefitting any lender or
               other third party are recorded.

     8.   Possession.  Upon the close of Escrow, Seller shall deliver vacant
          ----------
possession of the Real Estate to Buyer, subject to Seller's rights under the
Environmental Declaration.

     9.   Title.
          -----

          9.1  Title Policy.  Buyer will not be required to complete the
               ------------
               Transaction unless the Title Company as named in Section 1 is
               committed to issue an ALTA Standard Coverage Owner's Policy of
               Title Insurance (the "Title Policy") insuring Buyer in the amount
               of the Purchase Price upon the close of Escrow.  The Title Policy
               must insure Buyer's title to the Real Estate subject to only (i)
               the standard exclusions and exceptions of the policy form, (ii)
               nondelinquent taxes and assessments, and (iii) the Permitted
               Exceptions (as defined in Section 9.2).

          9.2  Title Review and Approval.  Seller shall cause the Title Company
               -------------------------
               to issue to Buyer a preliminary title report (or a commitment for
               title insurance, if the Real Estate is located in a state where
               title insurers do not issue preliminary title reports) (in either
               case, the "Report") covering the condition of title to the Real
               Estate.  Unless Buyer gives Seller written notice, within ten
               days after receiving the Report, objecting to matters shown in
               the Report, Buyer will be considered to have approved the
               condition of title as shown in the Report.  If Buyer so objects
               to any matter (each, a "Disapproved Matter") shown in the Report,
               Seller will have 30 days after receiving Buyer's written
               objection in which to remove the Disapproved Matter from record
               title or to obtain the Title Company's agreement to issue an
               appropriate endorsement to the Title Policy.  If Seller is unable
               or unwilling to remove the Disapproved Matter from record title
               or to obtain the Title

                                      -6-
<PAGE>

               Company's agreement, Seller may terminate this Agreement by
               giving a termination notice to Buyer and Escrow Holder within the
               30-day period. If Seller so terminates this Agreement, Seller
               shall pay all escrow and title cancellation charges; Escrow
               Holder shall return the Deposit to Buyer; and neither party will
               have any further obligation to the other under this Agreement.
               The term "Permitted Exception" means each matter shown in the
               Report that (i) is not a Disapproved Matter or (ii) is a
               Disapproved Matter for which Seller has obtained the Title
               Company's agreement to issue an appropriate endorsement to the
               Title Policy.

          9.3  Vesting of Title.  At least 30 days before the Closing Date,
               ----------------
               Buyer shall notify Seller and Escrow Holder how title to the Real
               Estate will vest.  If Buyer fails to so notify them, title will
               vest in Buyer as stated in the first sentence of this Agreement.

          9.4  Copy of Title Policy to Seller and Its Attorney.  Within 15 days
               -----------------------------------------------
               after Escrow closes, Escrow Holder shall mail a photocopy of the
               Title Policy to Seller and Seller's attorney.

     10.  Prorations.  Escrow Holder shall prorate the following items between
          ----------
Seller and Buyer as of the date that Escrow closes: Current installments of real
property taxes, current installments of special taxes and assessments, and any
rents or other income derived from the Real Estate.  Utility charges will not be
prorated.  Seller shall cause a final reading of the utility meters to be taken
on the day that Escrow closes; and Buyer shall arrange for all utility services
to be transferred into its name on the day that Escrow closes.

     11.  Fees and Costs.  Buyer and Seller each shall pay (i) one half of
          --------------
Escrow Holder's fee and (ii) the costs and expenses that Escrow Holder incurs on
its behalf, unless the cost or expense is otherwise allocated under this
Agreement.  Buyer shall pay state and local real estate transfer taxes and sales
taxes, if any; the recording fee for the Deed; and the premium for the Title
Policy.  But Seller shall pay for any endorsements that Seller obtains in
accordance with Section 9.2.

     12.  Environmental Matters.
          ---------------------

          12.1  Definitions.  Each underlined, capitalized term below has the
                -----------
meaning set forth beside it.

Agency:  The environmental regulatory agency that has jurisdiction over the
------
assessment and remediation of petroleum products in soil or groundwater on and
about the Real Estate.

                                      -7-
<PAGE>

Environmental Declaration:  The Declaration of Environmental Restriction and
-------------------------
Other Environmental Covenants and Conditions in the form of the attached Exhibit
"B".

Environmental Documents:  Each of the items listed on the attached Schedule 1.
-----------------------

Inspection Period:  45 days after Buyer receives this Agreement signed by Buyer
-----------------
and Seller.

Seller's Environmental Notice Address:
-------------------------------------

                Atlantic Richfield Company
                4 Centerpointe Drive, LPR 4-183
                La Palma, California 90623-1066
                Attn: Manager of Western Environmental Projects

                Facsimile: (714) 670-5195

          12.2  Environmental Reports.  Buyer acknowledges that Seller has
                ---------------------
delivered to Buyer a copy of the Environmental Documents.  Buyer understands
that all reports filed by Seller with the Agency with respect to the Real Estate
are public records, available at the Agency's offices for Buyer's review.

          12.3  Recording of Environmental Declaration.  Before Escrow closes,
                --------------------------------------
Buyer shall sign, have notarized, and deposit into Escrow the Environmental
Declaration.

          12.4  No Representations by Seller.  Buyer acknowledges that Seller
                ----------------------------
has not made any representations or warranties regarding the environmental
condition of the Real Estate, including without limitation any representation or
warranty with respect to the accuracy of information included in any report or
other written document regarding the environmental condition of the Real Estate,
other than as set forth in Section 19.  Seller will have no obligation to
provide any lender with any covenants, indemnities, or warranties regarding the
environmental condition of the Real Estate or any corrective action performed on
the Real Estate in order to facilitate Buyer's obtaining any loan.

          12.5  Buyer's Environmental Due Diligence.
                -----------------------------------

          (a)   Buyer's Inspection and Testing Rights.  During the Inspection
                -------------------------------------
Period, Buyer shall obtain a subsurface investigation report on the extent and
concentrations of any petroleum products in the soil and, if encountered,
groundwater at or under the Real Estate (the "Phase II Report").  Buyer shall
engage a geologist or professional engineer who is licensed by the State of
California and who is not an

                                      -8-
<PAGE>

affiliate of Buyer or Seller (the "Environmental Consultant"), to perform the
subsurface investigation and prepare and certify the Phase II Report. Buyer
shall initially pay for the cost of the Phase II Report. Escrow Holder shall
prorate the cost of the Phase II Report at the closing so that Buyer and Seller
share equally up to $15,000 of the total cost of the Phase II Report. The
parties shall request that the Environmental Consultant complete the Phase II
Report at least 10 days prior to the end of the Inspection Period. Subject to
the provisions of Section 12.5 (b) below, Buyer shall determine the scope of
work for the Phase 11 Report, in its reasonable discretion. Buyer shall have the
right to modify the scope of work, as a result of on-site conditions discovered
in the course of the investigation.

          (b) Special Buyer Testing.  If Buyer requests work, or a modification
              ---------------------
of the original scope of work, that involves any disturbance (including any
drilling or boring) of the surface of the land or any underground vault or
storage tank, underground pipes, or fuel lines ("Special Buyer Testing"), Buyer
must obtain Seller's prior written approval.  Seller may withhold its approval
if it determines in good faith that the Special Buyer Testing would interfere
with Seller's business operations or would pose a safety or environmental
hazard.  Buyer shall indemnify and defend Seller from all liabilities, damages,
losses, claims, costs and expenses (including reasonable attorneys' fees) that
Seller incurs arising from performance of the Special Buyer Testing.  Without
limiting the immediately preceding provisions of this Section 12.5(b), Buyer
shall promptly repair any damage to the Real Estate or any personal property
located at the Real Estate resulting from any Special Buyer Testing.  But Buyer
will have no liability regarding any contaminated soil or groundwater it may
discover on or under the Real Estate during the course of the Special Buyer
Testing, unless Buyer caused the release of that contamination, for example by
puncturing the underground storage tanks on the Real Estate.  Buyer's liability
under this Section 12.5(b) is in addition to Seller's right to retain the
Deposit and any accrued interest on the Deposit, when Seller is permitted to do
so under any provision of this Agreement concerning liquidated damages for
Buyer's default under this Agreement.  A termination of this Agreement will not
terminate Buyer's obligations under this Section 12.5(b).

          (c) Liens.  Buyer shall keep the Real Estate free from mechanics' and
              -----
similar liens arising from any and all Phase 11 Report costs (including without
limitation any Special Buyer Testing) payable by Buyer under this Agreement.

          (d) Reports and Disclosure.  Buyer shall deliver to Seller at Seller's
              ----------------------
Environmental Notice Address a copy of the Phase II Report, within two days
after Buyer receives the report.  Buyer shall not disclose the results of any
test to any regulatory agency or other third party, unless required to do so by
law and unless Buyer delivers to Seller at Seller's Environmental Notice Address
a copy of the disclosure at least ten days before Buyer mails or otherwise
transmits the disclosure to the agency or other third party.

                                      -9-
<PAGE>

          (e) Buyer's Termination Right.  If Buyer is not satisfied with the
              -------------------------
environmental condition of the Real Estate, Buyer may terminate this Agreement
by giving notice of termination to Seller and Escrow Holder during the
Inspection Period.  If Buyer terminates this Agreement, Buyer and Seller each
shall pay one half of the Escrow and title cancellation charges; after Buyer has
paid its share of those cancellation charges, the Deposit will be returned to
Buyer; and neither party will have any further obligation to the other under
this Agreement.  But the Deposit will not be returned to Buyer until Buyer has
delivered to Seller valid, recordable waivers of mechanics' and other statutory
liens from all contractors who conducted tests at Buyer's request.

     13.  As-Is Sale.  Buyer acknowledges that (i) it is buying the Real Estate
          ----------
solely in reliance on its own investigation; (ii) no covenants, representations,
or warranties have been made by Seller or on Seller's behalf, except those set
forth in this Agreement; (iii) Buyer has made itself aware of all governmental
laws, regulations, and requirements concerning the Real Estate or Buyer's
operation of a business on the Real Estate; and (iv) Buyer will be buying the
Real Estate in its condition existing when Escrow closes.

     14.  Seller's Right of First Refusal.  Before Escrow closes, Buyer shall
          -------------------------------
sign, have notarized, and deposit into Escrow a Right of First Refusal Agreement
(the "Right of First Refusal Agreement") in the form of the attached Exhibit
"D".

     15.  Liquidated Damages. IF ESCROW FAILS TO CLOSE DUE TO BUYER'S DEFAULT,
          ------------------
ESTABLISHING SELLER'S ACTUAL DAMAGES CAUSED BY BUYER'S DEFAULT WOULD BE
IMPRACTICAL OR EXTREMELY DIFFICULT. AWARDING SELLER THE DEPOSIT AND ANY ACCRUED
INTEREST ON THE DEPOSIT AS LIQUIDATED DAMAGES FOR BUYER'S DEFAULT WOULD BE
REASONABLE. THEREFORE, SELLER'S SOLE REMEDY FOR BUYER'S DEFAULT WILL BE TO KEEP
THE DEPOSIT AND ANY ACCRUED INTEREST. IF SELLER GIVES NOTICE TO ESCROW HOLDER
THAT BUYER HAS DEFAULTED AND INSTRUCTS ESCROW HOLDER TO PAY TO SELLER THE
DEPOSIT (IF THEN HELD IN ESCROW) AND ANY ACCRUED INTEREST, BUYER AUTHORIZES
ESCROW HOLDER TO COMPLY WITH SELLER'S INSTRUCTION WITHOUT BUYER'S FURTHER
CONSENT OR INSTRUCTIONS.

SELLER AND BUYER EACH ACKNOWLEDGE THAT IT HAS READ AND UNDERSTANDS THE ABOVE
PROVISIONS OF THIS SECTION 15; AND BY ITS INITIALS IMMEDIATELY BELOW, IT AGREES
TO BE BOUND BY THOSE PROVISIONS.

                  /s/ JC                    /s/ GS
            ----------------           -----------------
            Buyer's Initials           Seller's Initials

                                      -10-
<PAGE>

(In order to comply with California Civil Code Section 1677, the above provision
must be in at least 10-point bold type.  The above provision is in 11-point bold
type.)

     16.  Tax-Deferred Exchange.  If Seller elects to complete the sale of the
          ---------------------
Real Estate through a tax-deferred exchange under Internal Revenue Code Section
1031, Buyer shall cooperate with Seller in the exchange transaction. Buyer's
cooperation includes the signing, acknowledgment, and delivery of all documents
that Seller reasonably requests, at no risk or expense to Buyer.  Seller shall
indemnify and defend Buyer from all liabilities, damages, claims, costs, and
expenses (including reasonable attorneys' fees) that Buyer might incur in
connection with Buyer's participation in the exchange transaction.

     17.  Buyer's Authority.  Within ten days after Buyer signs this Agreement,
          -----------------
Buyer shall provide Seller with a copy of Buyer's governing documents (for
example, Articles of Incorporation, Bylaws, Agreement of Partnership, Limited
Liability Company Operating Agreement, or Declaration of Trust), authorizing
action (for example, corporate resolutions, consent of partners, or consent of
members), and any other document necessary to enable Seller to confirm that the
individual signing this Agreement for Buyer is authorized to bind Buyer.

     18.  Business Agreement.  This Agreement will not become effective unless
          ------------------
the Business Agreement, the Companion Real Estate Agreements, and the Companion
Business Agreements are signed at the same time that this Agreement is signed.
If PSI terminates the Business Agreement in accordance with its terms, Seller
may terminate this Agreement without further liability to Buyer.  If Buyer
terminates the Business Agreement in accordance with its terms, Buyer may
terminate this Agreement without further liability to Seller.

     19.  Seller's Representations and Warranties.  Seller represents and
          ---------------------------------------
warrants to Buyer as follows:

          19.1  No Notices of Violation.  To Seller's actual knowledge, Seller
                -----------------------
(i) is not aware that the Real Estate violates any applicable laws (including
zoning laws), except as disclosed in Schedule 2 attached hereto and (ii) has not
received any written notice from appropriate governmental authorities that the
Real Estate violates any applicable laws (including zoning laws), except as
disclosed in Schedule 2 attached hereto.

          19.2  No Notices of Defects.  To Seller's actual knowledge, Seller (i)
                ---------------------
is not aware of any material defects in the improvements on the Real Estate and
(ii) has not received any written notice from any insurance company, board of
fire underwriters, governmental agency, or similar organization regarding any
material defects in the improvements on the Real Estate.

                                      -11-
<PAGE>

          19.3  No Pending or Threatened Claims.  To Seller's actual knowledge,
                -------------------------------
no litigation or claims of any kind are pending or threatened, and no facts or
circumstances exist, that may in any way materially adverse affect the Real
Estate, including material violations of regulations of the Environmental
Protection Agency or any state regulatory body concerning the disposal of
hazardous waste, petroleum, underground storage tanks, or any other hazardous
materials at the Real Estate, except as disclosed in the Environmental
Documents.

          19.4  Construction of Improvements.  To Seller's actual knowledge, all
                ----------------------------
structures and improvements on the Real Estate (i) are in good condition,
reasonable wear and tear excepted and (ii) were constructed and installed in
substantial compliance with all applicable laws, statutes, ordinances, codes,
covenants, conditions, and restrictions of any kind or nature affecting the Real
Estate.

          19.5  Underground Storage Tanks.  The underground storage tanks and
                -------------------------
associated underground piping and vapor recovery systems at the Real Estate are
fully operational.

"To Seller's actual knowledge" means to the actual knowledge of Kyle Christie,
Linda Cohu, Ted Harriss, or Lynn Beteag, without independent inquiry, file
review, or any investigation whatsoever.  Seller represents to Buyer that Kyle
Christie is Seller's Facility Remediation Manager assigned to the Real Estate,
Linda Cohu is Seller's Manager of Environment, Health and Safety, Ted Harriss is
the Property Management Representative assigned to the Real Estate, and Lynn
Beteag is Seller's Property Management Manager assigned to the Real Estate.  All
representations and warranties made in this Agreement will be considered to be
made on the date of this Agreement and again on the date that Escrow closes.  A
condition of Buyer's obligation to close is that all warranties and
representations made are true on the date that Escrow closes. All those
representations and warranties will survive the Escrow closing and will not be
considered to have merged into and be governed by the closing documents for one
year after the Escrow closing.  If Buyer discovers before closing, that any
representation or warranty in this Agreement is not true, then Buyer may, as its
sole remedy, either (i) terminate this Agreement by delivering notice to Seller
before the Closing Date, in which case Escrow Holder shall return the Deposit to
Buyer, or (ii) elect to purchase the Real Estate subject to the untrue warranty
or representation, without any reduction in the Purchase Price.  If Buyer
discovers after the Escrow closing that any representation or warranty in this
Agreement is not true, Buyer may exercise all rights and remedies available at
law or in equity as a result of the untruthfulness of any representation or
warranty, as long as Buyer delivers written notice of the breach to Seller and
exercises any remedy, including the filing of any suit or other action, within
one year after the date that the Escrow closes.

                                 GENERAL PROVISIONS
                                 ------------------

                                      -12-
<PAGE>

     G1.  Notices.  Notices relating to this Agreement must be in writing and
          -------
sent to the addresses set forth in Section 1.  But a party may change its
address for notices by giving notice as required by this Section G1.  A written
notice will be considered given (i) when personally delivered, (ii) two business
days after deposit in the U.S. Mail as first class mail, certified or
registered, return receipt requested, with postage prepaid, (iii) one business
day after deposit with a reputable overnight delivery service for next business
day delivery, or (iv) on the business day of successful transmission by
electronic facsimile.

     G2.  Additional Instruments.  Seller and Buyer shall sign, acknowledge, and
          ----------------------
deliver to the other any further instruments reasonably required to carry out
the provisions of this Agreement.

     G3.  Successors and Assigns.  Each party's rights and obligations under
          ----------------------
this Agreement bind and benefit its successors and assigns.  But Buyer shall not
assign or otherwise transfer its interest under this Agreement without Seller's
prior written consent, which Seller may withhold in its sole discretion.  An
assignment or other transfer by Buyer without Seller's prior written consent
will be void.

     G4.  Time of Essence: Business Day.  Time is of the essence of each
          -----------------------------
provision of this Agreement in which time is a factor.  In this Agreement, the
term "business day" means days other than Saturdays, Sundays, and holidays
observed by the United States or the State of California.

     G5.  Uncontrollable Events.  Neither party will be liable to the other for
          ---------------------
its failure to perform under this Agreement due to events beyond its control,
including without limitation work stoppages, riots, acts of God, or other
similar events.

     G6.  Survival.  All representations, warranties, indemnities, and releases
          --------
contained in this Agreement will survive the close of Escrow or the termination
of this Agreement.

     G7.  Entire Agreement; Modification Waiver.  This Agreement (including any
          -------------------------------------
attached Exhibits) contains the entire agreement between Buyer and Seller with
respect to the Transaction, including all representations and warranties between
them. Any modification of this Agreement must be in writing and signed by both
parties.  Any waiver of a provision of this Agreement by a party must be in
writing.

     G8.  Governing Law.  The internal laws of the State of California govern
          -------------
this Agreement.

     G9.  Interpretation.  The captions appearing in this Agreement are for
          --------------
convenience of reference only, and they do not affect the meanings of the
provisions of

                                      -13-
<PAGE>

this Agreement. In this Agreement, each gender includes the other genders. Words
in the singular include the plural and vice versa, when appropriate. The word
"person" includes natural individuals and all other entities. The word "cost"
includes any cost or expense. The word "term" includes any covenant, condition,
representation, warranty, or other provision that is part of an agreement.
Whenever a provision of this Agreement requires Buyer or Seller to perform an
act, that person must do so at its sole cost (unless otherwise stated in
connection with that provision).

                              BUYER:

                              LLO-GAS, INC.,
                              a Delaware corporation

                              By:      /s/ John Castellucci
                                  ---------------------------------
                                    John D. Castellucci
                                    President

                              SELLER:

                              ATLANTIC RICHFIELD COMPANY,
                              a Delaware corporation

                              By:      /s/ G. Simning
                                  ---------------------------------
                                    Gary Simning
                                    Assistant Vice President

Agreed to by Escrow Holder

on Sept. 2                     , 1999.
   ----------------------------

CITYWIDE ESCROW SERVICES, INC.

By:      /s/  Patricia Cusick
    ------------------------------
     Patricia Cusick
     Escrow Officer

                                      -14-
<PAGE>

                     LEGAL DESCRIPTION OF THE REAL ESTATE

                 (See Exhibit "A" following this cover sheet.)

                                 EXHIBIT "A"

                                      -15-
<PAGE>

                               LEGAL DESCRIPTION

That part of Lots 8 and 9, BROADWAY GARDENS, according to Book 29 of Maps, Page
43, records of Maricopa County, Arizona, more particularly described as follows:

BEGINNING at the Southeast comer of Section 19, Township 1 North, Range 3 East
of the Gila and Salt River Base and Meridian, Maricopa County, Arizona; thence
West along the South line of the Southeast quarter of said Section 19, a
distance of 233.00 feet to a point on the Southerly prolongation of the West
line of said Lot 8; thence North 00 degrees 19 minutes 30 seconds West along
said West line a distance of 40.00 feet to a point on the North line of the
South 40 feet of said Southeast quarter, said point also lying on the North line
of the South 7 feet of said Lot 8 and also being the true point of beginning;

thence continuing North 00 degrees 19 minutes 30 seconds West along the West
line of said Lot 8 a distance of 234.48 feet to the Northwest corner of said Lot
8; thence North 89 degrees 27 minutes 24 seconds East along the North line of
said Lots 8 and 9 a distance of 193.00 feet to a point on the West line of the
East 7 feet of said Lot 9, said point also lying on the West line of the East 40
feet of said Southeast quarter; thence South 00 degrees 19 minutes 30 seconds
East along the said West line a distance of 216.31 feet to the intersection of
said West line with the North line of the South 27 feet of said Lot 9;

thence South 44 degrees 50 minutes 15 seconds West a distance of 28.20 feet to a
point on the North line of the South 7 feet of said Lot 9, said point also lying
on the West line of the East 27 feet of said Lot 9; thence West along said North
line a distance of 173.00 feet to the TRUE POINT OF BEGINNING;

EXCEPT that portion described as follows:

BEGINNING at the Southeast corner of the Southeast quarter of Section 19,
Township 1 North, Range 3 East of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona; thence North 0 degrees 19 minutes 30 seconds West
along the East line of said Southeast quarter a distance of 60.23 feet; thence
South 89 degrees 40 minutes 30 seconds West a distance 40.00 feet to the TRUE
POINT OF BEGINNING;

thence North 0 degrees 19 minutes 30 seconds West along the West right of way
line of 7th Avenue a distance of 216.31 feet; thence South 89 degrees 27 minutes
24 seconds West a distance of 2.00 feet;

thence South 0 degrees 19 minutes 30 seconds East a distance of 209.29 feet;
thence South 44 degrees 50 minutes 15 seconds West a distance of 21.15 feet;
thence South 90 degrees 00 minutes 00 seconds West a distance of 84.53 feet;
thence North 0 degrees 00 minutes 00 seconds West a distance of 6.00 feet;
thence South 90 degrees 00 minutes 00 seconds West 23.00 feet;

                                      -16-
<PAGE>

thence South 76 degrees 31 minutes 29 seconds West a distance of 68.66 feet;
thence South 90 degrees 00 minutes 00 seconds West a distance of 1.64 feet;
thence South 0 degrees 19 minutes 30 seconds East a distance of 2.00 feet;
thence North 90 degrees 00 minutes 00 seconds East a distance of 173.00 feet;
thence North 44 degrees 50 minutes 15 seconds East a distance of 28.20 feet to
the TRUE POINT OF BEGINNING.

                                      -17-
<PAGE>

                     LOCATION OF THE COMPANION REAL ESTATE

                 (See Exhibit "B" following this cover sheet.)

                                 EXHIBIT "B"

                                      -18-
<PAGE>

                     LOCATION OF THE COMPANION REAL ESTATE
<TABLE>

<S>                                        <C>
ARCO Facility No.:                         01860

Street Address, City, and State:           3817 W. Third Street
                                           Los Angeles, California 90020

ARCO Facility No.:                         05502

Street Address, City, and State:           702 West Broadway
                                           Phoenix, Arizona 85032

ARCO Facility No.:                         05212

Street Address, City, and State:           3366 N. San Gabriel Boulevard
                                           Rosemead, California 91770

ARCO Facility No.:                         05513

Street Address, City, and State:           13001 Stockdale Highway
                                           Bakersfield, California 93312

ARCO Facility No.:                         05972

Street Address, City, and State:           64200 20th Street
                                           North Palm Springs, California 92258

ARCO Facility No.:                         06202

Street Address, City, and State:           4100 California Avenue
                                           Bakersfield, California 93309
</TABLE>

                                 EXHIBIT "B"

                                      -19-
<PAGE>

                 DECLARATION OF ENVIRONMENTAL RESTRICTION AND
                 OTHER ENVIRONMENTAL COVENANTS AND CONDITIONS

                 (See Exhibit "C" following this cover sheet.)

                                 EXHIBIT "C"

                                      -20-
<PAGE>

Order No.: 02-950.079 VR
Escrow No.:__________________________
RECORDING REQUESTED BY OLD
REPUBLIC TITLE COMPANY AND WHEN RECORDED,
RETURN TO:

Atlantic Richfield Company
4 Centerpointe Drive, LPR6-163
La Palma, California 90623-1066
Attn: Oscar Castellon
       Facility No.: 05502
       Location:  702 West Broadway
                  Phoenix, AZ 85032                        FOR RECORDER'S USE
--------------------------------------------------------------------------------
Type 2, 4, and 5 Site in Multiple Site Sale

                 DECLARATION OF ENVIRONMENTAL RESTRICTION AND
                 OTHER ENVIRONMENTAL COVENANTS AND CONDITIONS

     This Declaration of Environmental Restriction and Other Environmental
Covenants and Conditions (this "Declaration") dated September 2 , 1999, is made
                                                    -----------
by LLO-GAS, INC., a Delaware corporation ("Owner"), for the benefit of ATLANTIC
RICHFIELD COMPANY, a Delaware corporation ("ARCO").

                                 RECITALS
                                 --------

     A.  ARCO is the former owner of the real property in the County of
Maricopa, State of Arizona, described in the attached Exhibit "A" (the "Real
Estate").  In connection with the signing and recording of this Declaration,
ARCO conveyed the Real Estate to Owner.

     B.  By this Declaration, Owner intends to impose certain restrictions on
the Real Estate.

                                 AGREEMENT
                                 ---------

          THEREFORE, Owner agrees and declares as follows:

     1.  Definitions.  Each underlined, capitalized term below has the meaning
         -----------
set forth beside it.

                                      -21-
<PAGE>

Agency:  The environmental regulatory agency that has jurisdiction over the
------
assessment and remediation of petroleum products in soil or groundwater on or
about the Real Estate.

ARCO Entities:  ARCO's officers, directors, employees, subsidiaries, divisions,
-------------
and affiliates.

Claim:  Any liability, damage, loss, claim, suit, judgment, settlement, cost,
-----
and expense (including reasonable attorney's fees) arising before or after the
Effective Date, whether or not Owner knew or suspected them to exist on the date
that Owner signed this Declaration or on the Effective Date.

Effective Date:  The date on which this Declaration is recorded.
--------------

Hazardous Material:  Any material, substance, or waste that has been determined
------------------
by any governmental authority to be capable of posing a risk of injury to
health, safety, or property.

Pre-Closing Contamination:  Any Hazardous Material released into the soil or
-------------------------
groundwater at or near the Real Estate before the Effective Date, whether or not
Owner knew or suspected it to exist on the date that Owner signed this
Declaration or on the Effective Date.

     2.  Owner's Acceptance of the Condition of the Real Estate. Owner has
         ------------------------------------------------------
accepted the Real Estate, including without limitation its environmental
condition, in "AS IS" condition on the Effective Date. Owner acknowledges that
the purchase price paid to ARCO for the Real Estate reflects (i) the effect of
this Declaration on the Real Estate and (ii) any Pre-Closing Contamination.

     3.  Owner's Waiver and Release of Environmental Claims.  Owner, for itself
         --------------------------------------------------
and its heirs, successors, and assigns (including without limitation all future
owners of the Real Estate), waives and releases any Claim that it might have
against ARCO or the ARCO Entities based on or related to any Pre-Closing
Contamination.

     4.  Notices.  Notices relating to this Declaration must be in writing and
         -------
sent to the addresses set forth below.  But a party may change its address for
notices by giving notice as required by this Section 4.  A written notice will
be considered given (i) when personally delivered, (ii) two business days after
deposit in the United States Mail as first class mail, certified or registered,
return receipt requested, with postage prepaid, (iii) one business day after
deposit with a reputable overnight delivery service for next business day
delivery, or (iv) on the business day of successful transmission by electronic
facsimile.  The parties' addresses for notices are as follows:

     To Owner:      LLO-Gas, Inc.

                                      -22-
<PAGE>

                         23805 Stuart Ranch Road, Suite 265
                         Malibu, California 90265
                         Attn:  John D. Castellucci

                         Facsimile: (310) 456-6094

     To ARCO:            Atlantic Richfield Company
                         4 Centerpointe Drive, LPR 4-183
                         La Palma, California 90623-1066
                         Attn: Manager of Western Environmental Projects

                         Facsimile: (714) 670-5195

     5.  Entire Agreement; Modification; Waiver.  This Declaration (including
         --------------------------------------
any attached Exhibits) contains the entire agreement between Owner and ARCO with
respect to the matters that are the subject of this Declaration.  Any
modification of this Declaration must be in writing and signed by Owner and
ARCO.  Any waiver of a provision of this Declaration by Owner or ARCO must be in
writing.

     6.  Further Acts.  Owner and ARCO shall each do all things that the other
         ------------
reasonably requests to carry out the purpose of this Declaration.

     7.  Attorneys' Fees.  If a dispute arises with respect to this Declaration
         ---------------
and if ARCO prevails in the dispute, then ARCO will be entitled to recover from
Owner the reasonable costs and expenses that ARCO incurred in enforcing its
rights under this Declaration, including reasonable attorneys' fees.

     8.  Restrictions Run with the Land.  ARCO's rights under this Declaration,
         ------------------------------
Owner's obligations under this Declaration, any restrictions on the use and
operation of the Real Estate, and any waivers and releases by Owner under this
Declaration (collectively, the "Rights and Restrictions") are for the benefit of
ARCO and its successors and assigns.  The Rights and Restrictions run with the
Real Estate and bind Owner's successors and assigns, including future owners of
the Real Estate, for ARCO's benefit.  The Rights and Restrictions are intended
to constitute equitable servitudes that burden the Real Estate.

                              OWNER:

                              LLO-GAS, INC.,
                              a Delaware corporation

                              By:      /s/ John Castellucci
                                  ---------------------------------------
                                       John D. Castellucci
                                       President

                                      -23-
<PAGE>

                                    John D. Castellucci
                                    President
(ATTACH NOTARY ACKNOWLEDGMENT)

                                      -24-
<PAGE>

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
================================================================================
<TABLE>

<S>                          <C>
STATE OF CALIFORNIA
         ----------
COUNTY OF ORANGE
          ------

On    September 2, 1999    before me,                            M. Bird, Notary Public
      --------------------             ------------------------------------------------------------------
                                       NAME, TITLE OF OFFICER -E.G., "JANE DOE", NOTARY PUBLIC

personally appeared          John D. Castellucci,
                     ------------------------------------------------------------------------------------

[X] personally known to me to be the person whose names is subscribed to the within
[SEAL]                     instrument and acknowledged to me that he executed the
                           same in his authorized capacity, and that by his signature
                           on the instrument the person, or the entity upon behalf of
                           which the person acted, executed the instrument.

                           WITNESS my hand and official seal.

                                     /s/   M. Bird
                           -----------------------------------------------------------------------------
                                                        SIGNATURE OF NOTARY
</TABLE>

===========================OPTIONAL=============================================
Though the data is not required by law, it may prove valuable to persons relying
on the document and could prevent the fraudulent reattachment of this form

[_]  INDIVIDUAL
[X]  CORPORATE OFFICER

     President                           Environmental Covenants and Conditions
     ---------                           --------------------------------------
                                               TITLE OR TYPE OF DOCUMENTS
PARTNER(S)       [_] LIMITED
                   [_] GENERAL

[_] ATTORNEY-IN-FACT                     --------------------
[_] TRUSTEE(S)                              NUMBER OF PAGES
[_] GUARDIAN/CONSERVATOR
[_] OTHER                                   September 2, 1999
                                         --------------------------------
                                            DATE OF DOCUMENTS

SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)

  LLO-Gas, Inc., a Delaware corporation           None
---------------------------------------  --------------------------------
                                         SIGNER(S) OTHER THAN NAMED ABOVE
<PAGE>

                     LEGAL DESCRIPTION OF THE REAL ESTATE

                 (See Exhibit "A" following this cover sheet.)

                                  EXHIBIT "A"

                                     -25-
<PAGE>

                               LEGAL DESCRIPTION

That part of Lots 8 and 9, BROADWAY GARDENS, according to Book 29 of Maps, Page
43, records of Maricopa County, Arizona, more particularly described as follows:

BEGINNING at the Southeast comer of Section 19, Township 1 North, Range 3 East
of the Gila and Salt River Base and Meridian, Maricopa County, Arizona; thence
West along the South line of the Southeast quarter of said Section 19, a
distance of 233.00 feet to a point on the Southerly prolongation of the West
line of said Lot 8; thence North 00 degrees 19 minutes 30 seconds West along
said West line a distance of 40.00 feet to a point on the North line of the
South 40 feet of said Southeast quarter, said point also lying on the North line
of the South 7 feet of said Lot 8 and also being the true point of beginning;

thence continuing North 00 degrees 19 minutes 30 seconds West along the West
line of said Lot 8 a distance of 234.48 feet to the Northwest comer of said Lot
8; thence North 89 degrees 27 minutes 24 seconds East along the North line of
said Lots 8 and 9 a distance of 193.00 feet to a point on the West line of the
East 7 feet of said Lot 9, said point also lying on the West line of the East 40
feet of said Southeast quarter; thence South 00 degrees 19 minutes 30 seconds
East along the said West line a distance of 216.31 feet to the intersection of
said West line with the North line of the South 27 feet of said Lot 9;

thence South 44 degrees 50 minutes 15 seconds West a distance of 28.20 feet to a
point on the North line of the South 7 feet of said Lot 9, said point also lying
on the West line of the East 27 feet of said Lot 9; thence West along said North
line a distance of 173.00 feet to the TRUE POINT OF BEGINNING;

EXCEPT that portion described as follows:

BEGINNING at the Southeast corner of the Southeast quarter of Section 19,
Township 1 North, Range 3 East of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona;

thence North 0 degrees 19 minutes 30 seconds West along the East line of said
Southeast quarter a distance of 60.23 feet; thence South 89 degrees 40 minutes
30 seconds West a distance 40.00 feet to the TRUE POINT OF BEGINNING;

thence North 0 degrees 19 minutes 30 seconds West along the West right of way
line of 7th Avenue a distance of 216.31 feet;
thence South 89 degrees 27 minutes 24 seconds West a distance of 2.00 feet;
thence South 0 degrees 19 minutes 30 seconds East a distance of 209.29 feet;
thence South 44 degrees 50 minutes 15 seconds West a distance of 21.15 feet;
thence South 90 degrees 00 minutes 00 seconds West a distance of 84.53 feet;
thence North 0 degrees 00 minutes 00 seconds West a distance of 6.00 feet;
thence South 90 degrees 00 minutes 00 seconds West 23.00 feet;

                                     -26-
<PAGE>

thence South 76 degrees 31 minutes 29 seconds West a distance of 68.66 feet;
thence South 90 degrees 00 minutes 00 seconds West a distance of 1.64 feet;
thence South 0 degrees 19 minutes 30 seconds East a distance of 2.00 feet;
thence North 90 degrees 00 minutes 00 seconds East a distance of 173.00 feet;
thence North 44 degrees 50 minutes 15 seconds East a distance of 28.20 feet to
the TRUE POINT OF BEGINNING.

                                     -27-
<PAGE>

                       RIGHT OF FIRST REFUSAL AGREEMENT

                 (See Exhibit "D" following this cover sheet.)

                                    EXHIBIT "D"

                                     -28-
<PAGE>

Order No.: 02-950.079 VR
Escrow No.:_______
RECORDING REQUESTED BY OLD
REPUBLIC TITLE COMPANY AND
WHEN RECORDED, RETURN TO:

Atlantic Richfield Company
4 Centerpointe Drive, LPR6-163
La Palma, California 90623-1066
Attn: Oscar D. Castellon
       Facility No.: 05502
       Location:  702 West Broadway
                  Phoenix, AZ 85032                         FOR RECORDER'S USE
--------------------------------------------------------------------------------

                       RIGHT OF FIRST REFUSAL AGREEMENT

          This Right of First Refusal Agreement (this "Agreement") dated
September 2, 1999, is made by LLO-GAS, INC., a Delaware corporation ("Owner"),
for the benefit of ATLANTIC RICHFIELD COMPANY, a Delaware corporation
("Holder").

                                    RECITALS
                                    --------

     A..  Holder is the former owner of the real property in the County of
Maricopa (the "County"), State of Arizona, described in the attached Exhibit "A"
(the "Real Estate").  In connection with signing and recording this Agreement,
Holder conveyed the Real Estate to Owner.

     B.  By this Agreement, Owner intends to grant to Holder certain rights to
buy or lease the Real Estate and certain other property.

                                    AGREEMENT
                                    ---------

          THEREFORE, Owner agrees as follows:

     10  Definitions.  When used in this Agreement, each underlined, capitalized
         -----------
term set forth below in this Section 1 has the meaning set forth beside it.
Certain other terms are defined throughout this Agreement.

          Adjacent Parcel:  A parcel adjacent to the Real Estate.  A parcel that
          ---------------
is separated from the Real Estate only by a driveway, street, or other means of
access will be considered an Adjacent Parcel.

                                     -29-
<PAGE>

          Alcoholic Beverage License:  A transferable license for the sale of
          --------------------------
alcoholic beverages at the Offered Parcel.

          Business Property:  All tangible and intangible personal property used
          -----------------
in the operation of any business conducted on an Offered Parcel. "Business
Property" includes, without limitation, (i) equipment, furnishings, and trade
fixtures, (ii) resalable inventory, (iii) supplies, and (iv) transferable
licenses and transferable permits, including without limitation any Alcoholic
Beverage License.

          Escrow:  Each escrow for the Transaction.
          ------

          Escrow Agent:  Individually, the Title Company and any escrow holder
          ------------
for the separate business property escrow contemplated by Section 7.

          Exercise Notice:  A notice from Holder to Owner in which Holder states
          ---------------
that it elects to acquire the Offered Parcel at the price and on the other terms
contained in the Tendered Agreement or at another price and on other terms that
are mutually acceptable to Owner and Holder.

          Extended Coverage Title Policy:  An ALTA Extended Coverage Owner's
          ------------------------------
Policy of Title Insurance.

          Improvements:  All improvements on or under the land of an Offered
          ------------
Parcel.

          Larger Parcel:  Any larger parcel that includes the Real Estate
          -------------

          Offered Parcel:  The Real Estate; a Larger Parcel, or the Real Estate
          --------------
and any Adjacent Parcel.  "Offered Parcel" includes land, the Improvements, and
all appurtenant rights and privileges.

          Recordation Date:  The date that this Agreement is recorded in the
          ----------------
Official Records of the County.

          Related Property:  The Improvements and the Business Property.
          ----------------

          Right:  The right to acquire Owner's interest in an Offered Parcel in
          -----
accordance with the terms of this Agreement.

          Right Duration:  A period of 25 years beginning on the Recordation
          --------------
Date.

          Tendered Agreement:  A bona fide agreement entered into by Owner for
          ------------------
Owner's transfer of an interest in an Offered Parcel to a third party.

                                     -30-
<PAGE>

          Title Company:  A title insurance company acceptable to Holder.
          -------------

          Transaction:  A purchase and sale transaction resulting from Holder's
          -----------
exercise of the Right.

          Transfer Notice:  A notice from Owner to Holder notifying Holder that
          ---------------
Owner has entered into a Tendered Agreement.  The Transfer Notice must include
(i) a copy of the signed Tendered Agreement and (ii) all information in Owner's
possession about the ultimate beneficial owner of the third party to whom the
Tendered Agreement contemplates that Owner will transfer an interest in an
Offered Parcel.

     2.   Grant of Right of First Refusal.  Owner grants to Holder the Right.
          -------------------------------
The Right is governed by the terms of this Agreement and will be in effect
during the Right Duration.

     3.   Included Rights; Exclusion of Security Interest Transfer.
          --------------------------------------------------------

          3.1  Offer to Lease or Sublease.  The Right includes the right to
               --------------------------
match the terms of any lease or sublease that Owner enters into during the Right
Duration covering (i) an Offered Parcel or (ii) part of an Offered Parcel when
that part includes all or part of the Real Estate.  The Right will exist whether
the leasehold or subleasehold is to begin during or after the Right Duration.

          3.2  Right Includes Related Property.  If (i) the Tendered Agreement
               -------------------------------
covers both an intended transfer of the Offered Parcel and an intended transfer
by Owner of any Related Property or (ii) in connection with the Tendered
Agreement, Owner enters into a separate agreement to transfer any Related
Property, the Right will include the right to acquire the Offered Parcel and the
Related Property that is to be transferred.  If such a separate agreement
exists, it will be considered a Tendered Agreement; and a copy of that signed
separate agreement must be included in the Transfer Notice.

          3.3  Exclusion of Security Interest Transfer.  The Right will not
               ---------------------------------------
apply to Owner's transfer of a security interest in an Offered Parcel to a third
party in a financing transaction.  But see Section 12 for Holder's rights in the
event of an intended sale of an interest in the Real Estate to enforce a junior
lien encumbering that interest.

     4.  Procedures for Notice and Exercise.
         ----------------------------------

          4.1  Transfer Notice.  If, during the Right Duration, Owner enters
               ---------------
into a Tendered Agreement, Owner shall promptly send a Transfer Notice to
Holder.  No one other than Owner can satisfy Owner's obligation to send the
Transfer Notice.  Holder may acquire the Offered Parcel that is the subject of
the Tendered Agreement, instead of the third party.

                                     -31-
<PAGE>

          4.2  Exercise Notice: Holder's Assessment and Testing Rights.  If
               -------------------------------------------------------
Holder wishes to exercise the Right for a transaction covered by a Transfer
Notice, Holder must send an Exercise Notice to Owner within 25 days after Holder
receives the Transfer Notice.  During that 25-day period, Holder and its agents,
employees, contractors, and consultants may enter on the Offered Parcel to
conduct reasonable and customary environmental and other assessments and tests
of the Offered Parcel.

          4.3  Holder Indemnifies Owner.  Holder shall indemnify and defend
               ------------------------
Owner from all liabilities, damages, claims, costs, and expenses (including
reasonable attorneys' fees) that Owner incurs and that arise from Holder's
exercise of the entry right granted under Section 4.2.  But Holder will not be
liable for any decrease in the value of any Offered Parcel resulting from
Holder's discovery of any negative matter regarding the Offered Parcel,
including without limitation any contaminated soil or water existing at the
Offered Parcel before the escrow for Holder's purchase closes (the "Pre-Closing
Contamination").  Holder will not be required to remove or dispose of any Pre-
Closing Contamination.  Holder may disclose the existence of any Pre-Closing
Contamination, to the extent that Holder is required to do so under applicable
law.

     5.  Additional Purchase Terms.  If Holder's exercise of the Right is for
         -------------------------
the purchase of the Offered Parcel, the Transaction will be at the price and on
the other terms contained in the Tendered Agreement, but subject to the
following:

          (a)  Variation of Terms.  Owner and Holder may vary the price and
               ------------------
               other terms in any manner that is mutually acceptable to them.

          (b)  Closing Date.  Holder will have a period of time to close the
               ------------
               Transaction that is equal to the longer of (i) the period of time
               given to the third party in the Tendered Agreement, but the
               period will begin on the date of the Exercise Notice, (ii) 60
               days after the opening of Escrow, (iii) 15 days after Holder
               receives the last Appraisal Report (as defined in Section 6.3)
               that may be required under Section 6.3, or (iv) the date on which
               Holder receives notice from the applicable governmental authority
               that the authority has transferred to Holder (or an affiliate of
               Holder) any Alcoholic Beverage License that is included in the
               Business Property.

          (c)  Price Allocation When Larger Parcel or Adjacent Parcel is
               ---------------------------------------------------------
               Offered.  If (i) the Right is for the purchase of a Larger Parcel
               and (ii) the purchase price in the Tendered Agreement is
               allocated between the Real Estate and the remainder of the Larger
               Parcel, Holder may buy the Real Estate and not the remainder by
               paying only the consideration allocated to the Real Estate.  Or
               if (i) the Right is for the purchase of a Larger Parcel and (ii)
               the purchase price is not so allocated, Holder may buy only the
               Real Estate by paying

                                     -32-
<PAGE>

               consideration that is equitable for only the Real Estate,
               considering the total purchase price to be paid by the third
               party for the Real Estate and the remainder. If Owner and Holder
               fail to agree on an equitable amount, that amount will be
               determined in accordance with Section 6. The above principles of
               this Section 5(c) will apply in like manner if the Right is for
               the purchase of the Real Estate and an Adjacent Parcel.

          (d)  Price Allocation When Business Property Is Offered.  If the Right
               is for the purchase of both the Offered Parcel and any Business
               Property and Holder exercises the Right, Holder must buy both the
               Offered Parcel and the Business Property.

          (e)  Cash Instead of Delayed Payment Terms.  If the Tendered Agreement
               -------------------------------------
               provides for delayed payment terms, Holder may pay the total
               purchase price in cash at the closing of the Transaction.

          (f)  Noncash Consideration.  If the Tendered Agreement provides for
               ---------------------
               any noncash consideration, Holder may pay cash equal to the fair
               market value of the noncash consideration, as agreed to by Owner
               and Holder or, failing their agreement, as determined in
               accordance with Section 6.

     6.   Valuation Disputes.
          ------------------

          6.1  Appointing Appraisers.  If Owner and Holder cannot agree on (i)
               ---------------------
               the equitable amount under Section 5(c), (ii) the value of the
               noncash consideration under Section 5(f), or (iii) the fair
               market value under Section 8.2 or 12.9, the amount or value (the
               "Value") will be determined in accordance with the appraisal
               procedures contained in this Section 6. Within 15 days after
               Owner or Holder receives a demand from the other for an appraisal
               in accordance with this Section 6, Owner and Holder each shall
               appoint a Qualified Appraiser (as defined in Section 6.2).  If
               one of them fails to timely appoint a Qualified Appraiser, the
               Qualified Appraiser appointed by the other will determine the
               Value.

          6.2  Qualified Appraiser. "Qualified Appraiser" means a real estate
               -------------------
               appraiser who (i) is a member of the Appraisal Institute, (ii) is
               unaffiliated with Owner, Holder, and the third party under the
               Tendered Agreement, and (iii) has had full-time experience,
               during each of the immediately preceding five years, in
               appraising commercial real property in the area of the Real
               Estate. But if Holder will be purchasing Business Property, the
               Qualified

                                     -33-
<PAGE>

               Appraiser must also have had substantial experience, during the
               immediately preceding five years, in appraising business assets
               in the area of the Real Estate. If the Appraisal Institute ceases
               to exist, a reasonably comparable, nationally recognized
               organization of real estate appraisers will be substituted in the
               definition of Qualified Appraiser.

          6.3  Determination of Value.  If only one appraiser is appointed, the
               ----------------------
               appraiser must deliver a signed report (an "Appraisal Report") to
               Owner and Holder within 30 days after his appointment. An
               Appraisal Report must set forth the appraiser's determination of
               the Value and the considerations on which his opinion is based.
               If two appraisers are appointed and they agree on the Value, they
               must deliver a signed joint Appraisal Report to Owner and Holder
               within 40 days after the appointment of the second appraiser.  If
               two appraisers are appointed and they fail to agree on the Value,
               each appraiser must deliver his signed Appraisal Report to Owner
               and Holder within 35 days after his appointment.  If the lower of
               the two determinations is at least 95% of the higher, the Value
               will be the average of the two determinations.  If not, then
               within ten days after Owner or Holder requests the two appraisers
               to do so, they must appoint a third appraiser who is a Qualified
               Appraiser.  Within ten days after his appointment, the third
               appraiser must select one of the two determinations as being the
               same as or the closer to the amount that he determines as the
               Value; and the selected determination will be the Value.

          6.4  Appraisal Fees.  Owner and Holder each shall bear the cost of the
               --------------
               appraiser that it appoints and one half of the cost of the third
               appraiser.

     7.   Escrow.  If Holder's exercise of the Right is for the purchase of the
          ------
Offered Parcel, the Transaction will occur through an Escrow with the Title
Company.  But if required by law or if Holder so wishes, the purchase and sale
of some or all of the Business Property will occur through a separate Escrow
with an escrow company that specializes in business property escrows and that is
acceptable to Holder.  Owner and Holder shall promptly sign escrow instructions
and open the Escrow.  Owner shall apply to the Title Company for a preliminary
title report on the condition of title of the Offered Parcel. Despite anything
to the contrary in the Tendered Agreement or elsewhere:

          (a)  Deed and Title Insurance.  Owner shall provide the Title Company
               ------------------------
               with a deed conveying title to the Offered Parcel, free of
               encumbrances, except those that Holder elects to accept. Owner
               shall provide Holder with an ALTA Standard Coverage Owner's

                                     -34-
<PAGE>

               Policy of Title Insurance insuring title, subject only to the
               printed exceptions of the policy and those encumbrances that
               Holder elects to accept.  The policy must be issued by the Title
               Company (or another insurer acceptable to Holder) and have a
               liability amount equal to the purchase price of the Offered
               Parcel.  Closing will be considered effected when the County
               Recorder accepts the deed for recording.

          (b)  Extended Coverage Title Policy: Survey.  Notwithstanding the
               --------------------------------------
               provisions of Section 7(a), Holder may require that the title
               policy be an Extended Coverage Title Policy.  In that event,
               Holder shall (i) obtain and provide to the title insurer any
               survey that the title insurer might require in order to issue the
               title policy as an Extended Coverage Title Policy and (ii) pay
               the increase in the premium attributable to the extended
               coverage.  Within three days after Escrow opens, Owner shall send
               to Holder a copy of the most recent survey (if any) of the
               Offered Parcel that Owner has in its possession.

          (c)  Taxes and Rent.  Taxes, rentals, and other items of income and
               --------------
               expense related to the Offered Parcel will be prorated as of the
               date that Escrow  closes.

          (d)  Closing Costs.  Owner and Holder each shall pay one half of
               -------------
               Escrow Agent's fee for handling the Escrow.  Owner shall pay the
               premium for Holder's title insurance policy.  Owner and Holder
               shall pay all other closing costs in accordance with the custom
               in the County.  But if no custom exists for a particular closing
               cost, each shall pay one half of that cost.

          (e)  Deductions by Holder.  Holder may deduct from the purchase price
               --------------------
               or from any other amounts that Holder is required to pay to Owner
               in connection with the Transaction any or all of the following:
               (i) Any trade payables or other amounts that Owner or any of its
               affiliates owes to Holder or any of its affiliates with respect
               to (A) the operation of the business conducted at the Offered
               Parcel or (B) all or any part of the Offered Parcel, (ii) any
               transfer fee that Owner or any of its affiliates is required to
               pay to Holder under a Contract Dealer Gasoline Agreement, an
               am/pm Mini Market Agreement, or a SmogPros Center Agreement
               pertaining to the business conducted at the Offered Parcel, and
               (iii) the unpaid balance of principal and accrued interest on any
               loan that is payable to Holder or any of its affiliates and that
               is secured, wholly or partially, by any property that Holder is
               buying in the Transaction, whether or not

                                     -35-
<PAGE>

               the deducted amounts would otherwise be due when Escrow closes.

     8.   Entity Changes.
          --------------

          8.1  Triggering Events.  Each of the following events (each, a
               -----------------
"Triggering Event") will be considered a transfer of all Offered Parcels and
Related Property that Owner owns or leases at the time of the Triggering Event:

          (a)  Change in Ownership Interests.  A sale, assignment, other
               -----------------------------
               disposition, hypothecation, encumbrance, or change in vesting of
               (i) an ownership, voting, or economic interest (including,
               without limitation, shares of stock in a corporation, a
               partnership interest in a general or limited partnership, or a
               membership interest in a limited liability company) in Owner or
               in a person that holds, directly or indirectly, an ownership,
               voting, or economic interest in Owner (a "Constituent Owner") or
               (ii) a consolidation or merger of Owner or a Constituent Owner,
               whether voluntarily, involuntarily, by operation of law, or
               otherwise;

          (b)  Disposition of Assets.  A sale, lease, assignment, or other
               ---------------------
               disposition of all or substantially all of Owner's assets; or

          (c)  Signing of Agreement.  The signing of an agreement to enter into
               --------------------
               a transaction described in Section 8.1 (a) or 8.1(b).

          8.2  Exclusions from Triggering Events.  Notwithstanding anything in
               ---------------------------------
this Agreement to the contrary, none of the following events will be considered
a Triggering Event:

          (a)  Immediate Sale of Stock in Owner.  A sale of up to 25% of stock
               --------------------------------
               in Owner, within 30 days after the Recordation Date, as long as
               (i) John D. Castellucci, or a revocable trust whose trustor,
               trustee, and beneficiary are all John D. Castellucci, retains
               ownership of 75% of the stock in Owner and (ii) John D.
               Castellucci retains control of the management of Owner.

          (b)  Future Sale of Stock in Owner. A sale of up to 15% of stock in
               Owner, as long as (i) John D. Castellucci, or a revocable trust
               whose trustor, trustee, and beneficiary are all John D.
               Castellucci, retains ownership of 75% of the stock in Owner and
               (ii) John D. Castellucci retains control of the management of
               Owner.

                                     -36-
<PAGE>

          (c)  Transfer to Parent Corporation. A transfer of any Offered Parcel
               or Related Property to a parent corporation of Owner, as long as
               John D. Castellucci (i) owns 75% of the stock in the parent
               corporation and (ii) has control of the management of the parent
               corporation and retains control of the management of Owner.

          (d)  Transfer to Wholly-Owned Subsidiary.  A transfer of any Offered
               Parcel or Related Property to a wholly-owned subsidiary of Owner,
               as long as John D. Castellucci (i) owns 75% of the stock in the
               wholly-owned subsidiary and (ii) retains control of the
               management of Owner and has control of the management of the
               wholly-owned subsidiary.

          8.3  Purchase at Fair Market Value.  Each Triggering Event will give
               -----------------------------
rise to the Right entitling Holder to buy all the Offered Parcels and Related
Property owned by Owner (i) at a price equal to their fair market value, as
agreed to by Owner and Holder or, failing their agreement, as determined in
accordance with Section 6, and (ii) on any other applicable terms contained in
any agreement to enter into the Triggering Event.

          8.4  Rescission by Holder.  If the entire purchase price for a
               --------------------
purchase by Holder in accordance with Section 8.3 results from one or more
Values determined in accordance with Section 6, Holder may rescind its Exercise
Notice by giving a notice of rescission to Owner.  If only part of the purchase
price for a purchase by Holder in accordance with Section 8.3 results from one
or more Values determined in accordance with Section 6 and that part of the
purchase price is greater than 15% of the entire purchase price, Holder may
rescind its Exercise Notice by giving a notice of rescission to Owner.  The
notice of rescission must be given within ten days after Holder receives the
last Appraisal Report that may be required under Section 6.3.  If Holder
rescinds its Exercise Notice, Holder shall pay the cost of all the appraisers.

     9.  Environmental Indemnification.  If Holder acquires an Offered Parcel
         -----------------------------
covered by a Transfer Notice or if Holder acquires the Real Estate in accordance
with Section 12, the person transferring the Offered Parcel or the Real Estate
to Holder ("Transferor") shall sign and deliver to Holder through the Escrow an
indemnification agreement containing the following provision:

          Transferor shall indemnify and defend Holder from all claims,
          liabilities, damages, losses, costs, and expenses (including
          reasonable attorneys' fees) that Holder incurs arising from any
          environmental contamination occurring or hazardous materials existing
          at the real property that Transferor is concurrently conveying to
          Holder (the "Real Property"), to the extent that the contamination or
          hazardous

                                     -37-
<PAGE>

          materials (i) are present at concentrations that any governmental
          agency will require to be remediated or otherwise are not in
          compliance with all applicable statutory and regulatory requirements,
          (ii) are known or discovered before Holder begins its operations at
          the Real Property, and (iii) are not those on which Holder is
          obligated to perform any corrective action under a written agreement
          between Transferor and Holder. This agreement to indemnify and defend
          will survive the closing of Transferor's transfer of the Real Property
          to Holder.

     10.  Owner's Transfer Rights; Notice of Changed Terms.  If Holder does not
          ------------------------------------------------
exercise the Right for a transaction covered by a Transfer Notice, Owner may
then transfer the interest in the Offered Parcel and any Related Property to the
third party but (i) only for the price and on the other terms contained in the
Tendered Agreement; (ii) only to the third party named in the Tendered
Agreement; (iii) only within 120 days after Holder receives the Transfer Notice;
and (iv) subject to Holder's rights under this Agreement, which will continue
with respect to each future intended transfer of an Offered Parcel by any owner
or tenant of the Real Estate.  Any change in (i) the identity of the third party
or the ultimate beneficial owner of the third party or (ii) the price or other
terms of the Tendered Agreement will give rise to a new Right exercisable by
Holder; and Owner must notify Holder of the changes.  Owner's notice must
include a copy of any signed document changing the price or other terms of the
Tendered Agreement.

     11.  Survival of Holder's Rights.  Holder's failure to exercise the Right
          ---------------------------
with respect to a Tendered Agreement covered by a Transfer Notice will not
relieve Owner from the obligation to comply with this Agreement in connection
with any later Tendered Agreement that Owner enters into during the Right
Duration.  Holder may void any transfer that Owner makes without complying with
this Agreement.  To exercise this right to void a transfer, Holder must give an
Exercise Notice within 25 days after Holder receives actual notice of the
intended or consummated noncomplying transfer and the complete terms of the
transfer.

     12.  Default on Obligations Secured by Junior Liens.
          ----------------------------------------------

          12.1  Definitions for Section 12.  When used in this Section 12 and
                --------------------------
elsewhere in this Agreement, each underlined, capitalized term set forth below
in this Section 12.1 has the meaning set forth beside it.  Certain other terms
are defined throughout this Section 12.

          Accelerated Amount:  Any amount that became due on or under the
          ------------------
Secured Obligation because Lender exercised an acceleration right arising from
the Loan Default.

                                     -38-
<PAGE>

          Assignment Endorsement:  An ALTA Endorsement No. 10.1 to Lender's
          ----------------------
Title Policy.

          Basic Loan Balance:  The unpaid balance of the Secured Obligation
          ------------------
reduced by the Default Amounts.

          Default Amounts:  All amounts that were added to the balance of the
          ---------------
Secured Obligation by reason of the Loan Default, whether those amounts have
been paid or remain unpaid. "Default Amounts" include, without limitation, (i)
late charges, (ii) the excess of any interest that accrued at a default rate
over the interest that would have accrued if Lender had not imposed the default
rate, (iii) any prepayment penalty, and (iv) any interest that accrued on any of
the amounts described in clauses (i) through (iii) of this sentence.

          Elected Property:  The items of real property and personal property
          ----------------
that Holder intends to buy from Owner in accordance with this Section 12 after
giving a Foreclosure Exercise Notice.

          Encumbered Property:  The property that is encumbered by a Lien.
          -------------------

          Foreclosure Exercise Notice:  A notice from Holder to Owner and Lender
          ---------------------------
stating that Holder elects to buy (i) the Secured Obligation in accordance with
this Section 12, (ii) the Real Estate in accordance with this Section 12, or
(iii) both the Secured Obligation and the Real Estate in accordance with this
Section 12.

          Foreclosure Purchase Right:  The right to buy (i) the Secured
          --------------------------
Obligation in accordance with this Section 12, (ii) the Real Estate in
accordance with this Section 12, or (iii) both the Secured Obligation and the
Real Estate in accordance with this Section 12.

          Foreclosure Sale:  A foreclosure, execution, or other lien-enforcement
          ----------------
sale.

          Lender:  A person for whose benefit a particular Lien exists.
          ------
"Lender" includes, without limitation, (i) the beneficiary under a deed of
trust, (ii) a mortgagee, and (iii) a judgment lien holder.

          Lender's Title Policy:  Lender's policy of title insurance insuring
          ---------------------
its interest with respect to the Lien.

          Lien:  A lien that (i) encumbers an interest in the Real Estate, (ii)
          ----
secures a monetary obligation, and (iii) is junior to Holder's rights under this
Agreement.

                                     -39-
<PAGE>

          Lien Enforcement Notice:  A notice from Lender to Holder notifying
          -----------------------
Holder of Lender's intent to enforce its Lien.  The Lien Enforcement Notice must
include (i) a copy of the recorded lien document, (ii) a copy of the promissory
note or other document evidencing the Secured Obligation, (iii) a current
preliminary title report contemplating the issuance of an Assignment
Endorsement, together with legible copies of all recorded documents referenced
in the report, (iv) a statement of the amount of the unpaid balance of the
Secured Obligation, (v) a description of the Loan Default, (vi) an itemization
of the portion of the unpaid balance of the Secured Obligation that is in
default, (vii) an itemization of the Default Amounts, and (viii) a statement of
any Accelerated Amount.

          Loan Default:  The breach for which Lender intends to foreclose its
          ------------
Lien.

          Reinstatement Amount:  The unpaid balance of the Secured Obligation
          --------------------
reduced by (i) the Accelerated Amount and (ii) the Default Amounts.

          Secured Obligation:  The monetary obligation secured by a Lien.
          ------------------

          12.2  Coverage of this Section 12.  The provisions of this Section 12
                ---------------------------
will apply with respect to each Lien and to each Lender who holds a Lien.

          12.3  Lender's Lien Enforcement Notice to Holder.  Before Lender
                ------------------------------------------
begins enforcement of its Lien (whether by private power of sale, judicial
foreclosure, or otherwise), Lender shall send a Lien Enforcement Notice to
Holder.

          12.4  Holder's Right to Buy.  Before Lender begins enforcement of its
                ---------------------
Lien, Holder will have the Foreclosure Purchase Right.

          12.5  Holder's Exercise Notice to Owner and Lender.  If Holder wishes
                --------------------------------------------
to exercise the Foreclosure Purchase Right, Holder must send a Foreclosure
Exercise Notice to Owner and Lender within 25 days after Holder actually
receives the Lien Enforcement Notice.

          12.6  Holder's Purchase of Real Estate.  If Holder exercises the
                --------------------------------
Foreclosure Purchase Right with respect to the Real Estate, the Foreclosure
Purchase Right will include the right to buy the Real Estate and all
improvements on or under the Real Estate, together with all or any portion of
the following that Holder wishes to buy and in which Owner holds an interest:
(i) Any Larger Parcel, (ii) any Adjacent Parcel, (iii) the improvements on or
under any Larger Parcel or Adjacent Parcel that Holder elects to buy, and (iv)
all Business Property used in the operation of any business conducted on the
real property that Holder intends to buy.

          12.7  Holder's Purchase of Secured Obligation.  If Holder elects to
                ---------------------------------------
buy the Secured Obligation, then within 20 days after the date of the
Foreclosure Exercise

                                     -40-
<PAGE>

Notice, Holder shall buy from Lender, and Lender shall sell to Holder, the
Secured Obligation and all of Lender's rights in connection with the Secured
Obligation. The purchase price will be equal to the Basic Loan Balance as of the
date of the closing of the purchase and sale transaction. If Holder wishes, the
purchase and sale transaction will occur through an escrow with a title
insurance company acceptable to Holder. At the closing of the transaction, (i)
Holder shall pay the purchase price to Lender in readily available funds; (ii)
Lender shall deliver to holder (A) any promissory note evidencing the Secured
Obligation, endorsed by Lender to Holder or Holder's nominee, (B) a recordable
assignment of the Lien, signed and acknowledged by Lender, (C) the original of
Lender's Title Policy, and (D) the Assignment Endorsement issued by the title
insurance company that issued Lender's Title Policy; and (iii) Holder and Lender
shall sign, acknowledge, and deliver any other documents necessary or
appropriate to consummate the transaction. The Assignment Endorsement must
insure Holder against loss or damage sustained be reason of lack of priority of
the Lien over defects, liens, or encumbrances other than those shown in Lender's
Title Policy and those that Holder approves in its sole discretion.

          12.8  Holder's Purchase of Elected Property.  If Holder elects to buy
                -------------------------------------
the Elected Property, the purchase and sale transaction will be consummated in
accordance with the procedures described in Section 7.  Holder will have a
period of time to close the purchase of the Elected Property that is equal to
the longer of (i) 60 days after the opening of Escrow, (ii) 15 days after Holder
receives the last Appraisal Report that may be required under Section 6.3, or
(iii) the date on which Holder receives notice from the applicable governmental
authority that the authority has transferred to Holder (or an affiliate of
Holder) any Alcoholic Beverage License that is included in the Elected Property.

          12.9  Purchase Price for Elected Property; Reduction and Credits.  The
                ----------------------------------------------------------
purchase price for the Elected Property will be equal to 80% of the fair market
value of the Elected Property, as agreed to by Owner and Holder or, failing
their agreement, as determined in accordance with Section 6.  But the purchase
price will be reduced by the total costs (including attorneys' fees) that Holder
incurs in connection with the purchase and sale of the Elected Property, to the
extent that those costs exceed the costs that Holder would have incurred if
Holder had purchased the Elected Property after Holder's exercise of the Right
with respect to a Tendered Agreement for Owner's sale of the Elected Property.
If Holder elects to buy the Elected Property subject to the Lien that was the
subject of the Lien Enforcement Notice.  Holder will receive a credit against
the purchase price for the Basic Loan Balance as of the date that Escrow closes.
If Holder elects to buy the Elected Property subject to a lien that secures a
monetary obligation other than the Secured Obligation that was the subject of
the Lien Enforcement Notice, Holder will receive a credit against the purchase
price for the unpaid balance of that monetary obligation as of the date that
Escrow closes.

                                     -41-
<PAGE>

          12.10  Buying Subject to the Lien.  If Holder elects to buy the Real
                 --------------------------
Estate in accordance with this Section 12, Holder may buy the Real Estate
subject to the Lien and without assuming the obligations secured by the Lien.
Additionally, any person who later buys the Real Estate from Holder may buy the
Real Estate subject to the Lien and without assuming the obligations secured by
the Lien.

          12.11  Reinstating the Secured Obligation.  If Holder becomes the
                 ----------------------------------
owner of the Real Estate in accordance with this Section 12, Holder may
reinstate the Secured Obligation within 30 days after Holder becomes the owner
of the Real Estate by paying the Reinstatement Amount as of the reinstatement
date.  Within seven days after the reinstatement date, Lender shall credit the
unpaid balance of the Secured Obligation by the Default Amounts.

          12.12  No Prepayment Penalty.  At any time after Holder reinstates the
                 ---------------------
Secured Obligation, Holder or any person who later buys the Real Estate from
Holder may prepay all or any portion of the unpaid balance of the Secured
Obligation without the imposition of a prepayment penalty.

          12.13  Lender's Transfer Rights; New Lien Enforcement Notice.  If
                 -----------------------------------------------------
Holder does not exercise the Foreclosure Purchase Right, Lender may proceed with
the enforcement of the Lien and (i) sell the Encumbered Property to a third
party at a Foreclosure Sale, (ii) buy the Encumbered Property by a credit bid at
the Foreclosure Sale, or (iii) accept a deed conveying the Encumbered Property
in lieu of foreclosure, in each case without the requirement of making a further
offer of the Encumbered Property to Holder.  But if, within one year after
Holder actually received the Lien Enforcement Notice, Lender's enforcement of
the Lien has not been completed or Lender has not accepted a deed in lieu of
foreclosure, Lender must give a new Lien Enforcement Notice to Holder before
completing the enforcement of the Lien or accepting a deed in lieu of
foreclosure.

          12.14  Holder's Rights Bind Foreclosure Purchaser.  If Holder does not
                 ------------------------------------------
exercise the Foreclosure Purchase Right and (i) Lender or a third party buys the
Encumbered Property at the Foreclosure Sale or (ii) Lender accepts a deed
conveying the Encumbered Property in lieu of foreclosure, the new owner of the
Encumbered Property will acquire the Real Estate subject to Holder's rights
under this Agreement, which will continue with respect to each future intended
transfer of an Offered Parcel by any owner or tenant of the Real Estate.

                              GENERAL PROVISIONS
                              ------------------

     G1.  Notices.  Notices relating to this Agreement must be in writing and
          -------
sent to the addresses set forth below in this Section G1.  But a party may
change its address for notices by giving notice as required by this Section G1.
A written notice will be considered given (i) when personally delivered, (ii)
two business days after deposit in

                                     -42-
<PAGE>

the United States Mail as first class mail, certified or registered, return
receipt requested, with postage prepaid, (iii) one business day after deposit
with a reputable overnight delivery service for next business day delivery, or
(iv) on the business day of successful transmission by electronic facsimile. The
parties' addresses for notices are as follows:

     To Holder:     Atlantic Richfield Company
                    4 Centerpointe Drive, LPR 6-184
                    La Palma, California 90623-1066
                    Attn: Manager, Real Estate and Dealer Acquisitions

                    Facsimile: (714) 670-5439

     To Owner:      LLO-Gas, Inc.
                    23805 Stuart Ranch Road, Suite 265
                    Malibu, California 90265
                    Attn: John D. Castellucci

                    Facsimile: (310) 456-6094

     G2.  Further Acts.  Owner and Holder each shall do everything that the
          ------------
other reasonably requests to carry out the purpose of this Agreement.

     G3.  Successors and Assigns.  The rights and obligations under this
          ----------------------
Agreement bind and benefit the respective successors and assigns of Owner and
Holder.  For example, the covenants and obligations of Owner contained in this
Agreement will bind each future owner or tenant of all or part of the Real
Estate; and each of those persons will be considered "Owner" under this
Agreement with respect to the applicable part of the Real Estate while that
person is the owner or tenant.

     G4.  Time of Essence: Business Day; Dates.  Time is of the essence of each
          ------------------------------------
provision of this Agreement in which time is a factor.  In this Agreement, the
term "business day" means days other than Saturdays, Sundays, and holidays
observed by the United States or the State of California.  If the date by which
an event is to occur under this Agreement falls on a day that is not a business
day, the event may occur on the next business day.

     G5.  Uncontrollable Events.  The date by which a party is to perform an
          ---------------------
obligation (other than the payment of money) under this Agreement will be
extended for the period during which the party is prevented from performing by
an event beyond its reasonable control (including, without limitation, acts of
God, work stoppage, riots, and other similar events) (an "Uncontrollable
Event").  If (i) a party who has the right to exercise a right under this
Agreement has not done so by the last date allowed under this Agreement and (ii)
on that date, the party is prevented from exercising the right due

                                     -43-
<PAGE>

to an Uncontrollable Event, the date will be extended until the third business
day after the Uncontrollable Event ends.

     G6.  Entire Agreement; Modification; Waiver.  This Agreement (including any
          --------------------------------------
attached Exhibits) contains the entire agreement between Owner and Holder with
respect to the Right granted under this Agreement.  Any modification of this
Agreement must be in writing and signed by Owner and Holder.  Any waiver of a
provision of this Agreement by Owner or Holder must be in writing.

     G7.  Governing Law.  The internal laws of the State of California govern
          -------------
this Agreement.

     G8.  Interpretation.  The captions appearing in this Agreement are for
          --------------
convenience of reference only, and they do not affect the meanings of the
provisions of this Agreement.  In this Agreement, each gender includes the other
genders.  Words in the singular include the plural and vice versa, when
appropriate.  The word "person" includes natural individuals and all other
entities.  The word "cost" includes any cost or expense.  The word "term"
includes any covenant, condition, representation, warranty, or other provision
that is part of an agreement.  Whenever a provision of this Agreement requires
Owner or Holder to perform an act, that person must do so at its sole cost
(unless otherwise stated in connection with that provision).

     G9.  Attorneys' Fees.  If a dispute arises with respect to this Agreement
          ---------------
and if Holder prevails in the dispute, then Holder will be entitled to recover
from Owner the reasonable costs and expenses that Holder incurred in enforcing
its rights under this Agreement, including reasonable attorneys' fees.

                            OWNER:

                            LLO-GAS, INC.,
                            a Delaware corporation

                            By:     /s/  John Castellucci
                                -------------------------------------
                                   John D. Castellucci
                                   President

(ATTACH NOTARY ACKNOWLEDGMENT)

                                     -44-
<PAGE>

                     LEGAL DESCRIPTION OF THE REAL ESTATE

                 (See Exhibit "A" following this cover sheet.)

                                  EXHIBIT "A"

                                      -45-
<PAGE>

                               LEGAL DESCRIPTION

That part of Lots 8 and 9, BROADWAY GARDENS, according to Book 29 of Maps, Page
43, records of Maricopa County, Arizona, more particularly described as follows:

BEGINNING at the Southeast comer of Section 19, Township 1 North, Range 3 East
of the Gila and Salt River Base and Meridian, Maricopa County, Arizona; thence
West along the South line of the Southeast quarter of said Section 19, a
distance of 233.00 feet to a point on the Southerly prolongation of the West
line of said Lot 8; thence North 00 degrees 19 minutes 30 seconds West along
said West line a distance of 40.00 feet to a point on the North line of the
South 40 feet of said Southeast quarter, said point also lying on the North line
of the South 7 feet of said Lot 8 and also being the true point of beginning;

thence continuing North 00 degrees 19 minutes 30 seconds West along the West
line of said Lot 8 a distance of 234.48 feet to the Northwest corner of said Lot
8; thence North 89 degrees 27 minutes 24 seconds East along the North .line of
said Lots 8 and 9 a distance of 193.00 feet to a point on the West line of the
East 7 feet of said Lot 9, said point also lying on the West line of the East 40
feet of said Southeast quarter; thence South 00 degrees 19 minutes 30 seconds
East along the said West line a distance of 216.31 feet to the intersection of
said West line with the North line of the South 27 feet of said Lot 9;

thence South 44 degrees 50 minutes 15 seconds West a distance of 28.20 feet to a
point on the North line of the South 7 feet of said Lot 9, said point also lying
on the West line of the East 27 feet of said Lot 9;
thence West along said North line a distance of 173.00 feet to the TRUE POINT OF
BEGINNING;

EXCEPT that portion described as follows:

BEGINNING at the Southeast corner of the Southeast quarter of Section 19,
Township 1 North, Range 3 East of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona;
thence North 0 degrees 19 minutes 30 seconds West along the East line of said
Southeast quarter a distance of 60.23 feet;
thence South 89 degrees 40 minutes 30 seconds West a distance 40.00 feet to the
TRUE POINT OF BEGINNING;
thence North 0 degrees 19 minutes 30 seconds West along the West right of way
line of 7th Avenue a distance of 216.31 feet;
thence South 89 degrees 27 minutes 24 seconds West a distance of 2.00 feet;
thence South 0 degrees 19 minutes 30 seconds East a distance of 209.29 feet;
thence South 44 degrees 50 minutes 15 seconds West a distance of 21.15 feet;

                                      -46-
<PAGE>

thence South 90 degrees 00 minutes 00 seconds West a distance of 84.53 feet;
thence North 0 degrees 00 minutes 00 seconds West a distance of 6.00 feet;
thence South 90 degrees 00 minutes 00 seconds West 23.00 feet;
thence South 76 degrees 31 minutes 29 seconds West a distance of 68.66 feet;
thence South 90 degrees 00 minutes 00 seconds West a distance of 1.64 feet;
thence South 0 degrees 19 minutes 30 seconds East a distance of 2.00 feet;
thence North 90 degrees 00 minutes 00 seconds East a distance of 173.00 feet;
thence North 44 degrees 50 minutes 15 seconds East a distance of 28.20 feet to
the TRUE POINT OF BEGINNING.

                                      -47-
<PAGE>

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
================================================================================

STATE OF CALIFORNIA
         ----------
COUNTY OF ORANGE
          ------
<TABLE>
<S>                                   <C>
On September 2, 1999 before me,       M. Bird, Notary Public
   -----------------           -------------------------------------------------------------------------
                               NAME, TITLE OF OFFICER -E.G., "JANE DOE", NOTARY PUBLIC

personally appeared          John D. Castellucci,
                    ---------------------------------------------------------------------------
</TABLE>

[X]  personally known to me  to be the person whose names is subscribed to the
                                   within instrument and acknowledged to me that
[SEAL]                             he executed the same in his authorized
                                   capacity, and that by his signature on the
                                   instrument the person, or the entity upon
                                   behalf of which the person acted, executed
                                   the instrument.

                                   WITNESS my hand and official seal.

                                              /s/  M. Bird
                                   ---------------------------------------------
                                                  SIGNATURE OF NOTARY
===============================OPTIONAL=========================================
Though the data is not required by law, it may prove valuable to persons relying
on the document and could prevent the fraudulent reattachment of this form

[_]  INDIVIDUAL
[X]  CORPORATE OFFICER

     President                              Right of First Refusal Agreement
     ---------                              ------------------------------------
                                                 TITLE OR TYPE OF DOCUMENTS
PARTNER(S)       [_] LIMITED

                 [_] GENERAL

[_]  ATTORNEY-IN-FACT                       ------------------------------------
[_]  TRUSTEE(S)                                        NUMBER OF PAGES
[_]  GUARDIAN/CONSERVATOR
[_]  OTHER                                         September 2, 1999
                                            ------------------------------------
                                                    DATE OF DOCUMENTS

SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)

<TABLE>
<S>                                                        <C>
                LLO-Gas, Inc., a Delaware corporation                   None
--------------------------------------------------------    --------------------------------
                                                            SIGNER(S) OTHER THAN NAMED ABOVE
</TABLE>

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