Document:

<PAGE>   1
                                                                   EXHIBIT 10.24

 Confidential Treatment Requested. Confidential portions of this document have
        been redacted and have been separately filed with the Commission

                               ALLIANCE AGREEMENT

                                     BETWEEN

                               BECHTEL CORPORATION

                                       AND

                               PROBEX CORPORATION

<PAGE>   2

<TABLE>
<CAPTION>
   CONTENTS
--------------
ARTICLE  TITLE
-------  -----

<S>      <C>
1.       ALLIANCE
2.       PARTIES COMMITMENT TO TECHNOLOGY
3.       PARTIES COMMITMENT TO FEL AND EPC
4.       MANAGEMENT OF THE ALLIANCE
5.       ALLIANCE ADVISORY GROUP
6.       COMPENSATION
7.       SCHEDULE
8.       LIABILITY EXCLUSIONS
9.       OWNERSHIP OF DATA AND INTELLECTUAL PROPERTY RIGHTS
10.      CONFIDENTIAL INFORMATION
11.      DISCLOSURE
12.      NO PARTNER RELATIONSHIP INTENDED
13.      MARKETING ASSISTANCE AND INFORMATION
14.      SOLE OWNER
15.      APPLICABLE LAW
16.      ALTERNATE DISPUTE RESOLUTION
17.      TERMINATION
18.      ORDER OF PRECEDENCE
19.      FAIR OPERATION OF AGREEMENT
20.      APPROVED VENDORS
21.      NOTICES
22.      ASSIGNMENT
23.      COMPLIANCE WITH LAW
24.      ENTIRE AGREEMENT
</TABLE>

<TABLE>
<S>               <C>
EXHIBIT 1         OWNERSHIP OF DATA AND INTELLECTUAL PROPERTY RIGHTS
EXHIBIT 2         LIST OF APPROVED MODULE FABRICATORS
EXHIBIT 3         INCENTIVES
</TABLE>

Alliance Agreement                Page 2 of 37
<PAGE>   3

                               ALLIANCE AGREEMENT

This Alliance Agreement is entered into effective the 31st day of January, 2001,
by and between Bechtel Corporation, a Nevada Corporation with offices at 3000
Post Oak Blvd., Houston, TX (hereinafter referred to as "Bechtel") and Probex
Corporation, a corporation organized pursuant to the laws of Delaware with
offices at One Galleria Tower, 13355 Noel Road, Suite 1200, Dallas, Texas 75240,
(hereinafter referred to as "Probex"). The foregoing shall sometimes be
collectively referred to as Parties, and sometimes singularly as a Party.

                                   WITNESSETH:

WHEREAS, Probex has developed Pro Terra(TM), a proprietary process for
manufacturing premium base lubricating oil from Used Oil, and Bechtel's
proprietary MP Refining(TM) technology is a good complement to the finishing
stage of Pro Terra(TM), and

WHEREAS, to capitalize on their respective complementary resources and
capabilities, Probex wishes to obtain Bechtel's assistance in the engineering,
design, procurement, and construction worldwide of Used Oil refining facilities
based on the Pro Terra(TM) technology and enhanced by the MP Refining(SM)
technology, including other Bechtel assistance, as herein provided; and

WHEREAS the Parties wish to maximize their respective opportunities for building
Used Oil refining projects worldwide using the Probex Pro Terra(TM) technology
which includes Bechtel's MP Refining(SM) technology, by having Bechtel, on an
exclusive basis, design/build such projects worldwide; and to further facilitate
the project financing of such projects, Bechtel will perform its services on a
lump sum, turnkey engineering, procurement and construction basis, as herein
provided; and

WHEREAS, Probex and Bechtel have the necessary technical competence for the
provision of such services and wish to participate in such opportunities on the
basis of this Agreement; and

WHEREAS, Probex and Bechtel each have proprietary technology applicable to Used
Oil refining and other proprietary data, and Bechtel has proprietary know-how
and automated processes for designing and constructing process plants as well as
other proprietary data; and

WHEREAS, Probex and Bechtel are intent on establishing a cooperative approach to
providing a competitive product design pertaining to Used Oil processing
technology and the Used Oil processing industry in general; and

WHEREAS, the Parties desire to set forth their respective rights, interests and
obligations as Alliance participants.

NOW, THEREFORE, the Parties hereby agree as follows:

Alliance Agreement                Page 3 of 37
<PAGE>   4

Definitions:

Affiliate - means any corporation or partnership directly or indirectly
controlling, directly or indirectly controlled by, or under direct or indirect
common control with, such Party.

Agreement - means this Alliance Agreement document, agreed to and signed by the
Parties, including the attached Exhibits.

Alliance - means the association of the Parties under the terms of this
Agreement.

Base Salary Hourly Rate - means the hourly rate derived by dividing the gross
annual salary, prior to any deductions and excluding bonuses and commissions, by
2080.

Contract Price - means all of the compensation, but not including incentives as
provided in Exhibit 3, to be paid to Bechtel for a Project's scope of work, as
defined in the associated EPC Contract, subject to the terms and conditions in
Articles 6.3(d) and 6.4 of this Agreement.

Data - means all designs, plans, models, drawings, prints, samples,
transparencies, specifications, reports, manuscripts, working notes,
documentation, manuals, photographs, negatives, tapes, discs, databases,
software, and any other similar items.

EPC - means the activities of project management, engineering, procurement,
construction (including construction supervision), and construction management,
as applicable.

EPC Contract(s) -- means a document separate and distinct from, and independent
of, this Agreement between the Parties or their Affiliates (whether one or more)
to perform EPC Services for Probex. For each specific Project that the Parties
or their Affiliates pursue, an EPC Contract shall be executed by the
representatives of each Party or their Affiliates, setting forth the definitive
agreements of the Parties.

FEL - means front end loading to be performed by Bechtel on a cost reimbursable
basis to develop designs, drawings, plans, specifications which are the basis
for detailed engineering and which are required for Bechtel to provide a Funding
Cost Estimate and schedule for a Project.

Funding Cost Estimate - means the cost estimate which is a deliverable from the
FEL that forms the basis of the Contract Price for a Project as defined in
Article 6.3(a). [Confidential material redacted and filed separately with the
Commission.]

Hazardous Wastes or Materials - means any radioactive emissions and any natural
or artificial substance (either in a solid or liquid form or in the form of a
gas or vapour and whether alone or in combination with any other substance)
capable of causing harm to man or any other living organism supported by the
environment or public health or welfare, or damage to property, including but
not limited to any controlled, special, hazardous, toxic, radioactive or
dangerous waste, the disposal of which (in the relevant jurisdiction) is
regulated by governmental authorities.

Alliance Agreement                Page 4 of 37
<PAGE>   5

MP Refining(SM) Process - means the proprietary Bechtel process for treating and
purifying hydrocarbon oils wherein said oils are mixed with a substance
containing N-methyl-2-pyrrolidone ("MP"), the mixture separated into layers and
the MP layer separated from the remainder of the mixture.

Open Book - means the cost information used by Bechtel as the basis for
producing the Funding Cost Estimate, including historical project metrics, that
shall be made available to Probex. Examples of historical project metrics
include, but are not limited to, such items as "Home Office hours" per piece of
equipment, "Craft hours" required for installation per linear foot of pipe, etc.

Pro Terra(TM) Process - means the Probex proprietary process when used for the
production of high quality lubricant base from Used Oil that sequentially
embodies pretreatment, fractionation and finishing stages. When the ProTerra(TM)
Process uses a Solvent Finishing Unit, the MP Refining(SM) Process will be used,
to the extent herein provided.

Probex Project - shall mean construction of a Used Oil refining plants employing
the ProTerra(TM) Process.

Project - shall mean the undertaking to provide Services as specified in any
particular EPC Contract signed by the Parties.

Services - means the EPC services to be supplied or performed by Bechtel for
Probex or its Affiliates on a lump sum basis, including, without limitation,
labor, materials and equipment supplied for the construction of Used Oil
refining plants.

Solvent Finishing Unit- means the unit, which is currently employed by the
Parties as the finishing stage of the ProTerra(TM) Process, where the
distillates from Used Oil are treated by an extraction process with N-methyl
2-pyrrolidone ("MP") solvent.

Technical Services Agreement - means a document separate and distinct from, and
independent of, this Agreement, between the Parties or their Affiliates (whether
one or more) to perform for Probex or its Affiliates conceptual studies,
feasibility studies and any FEL work involving the Probex Pro Terra(TM) Process
technology.

Technical Services Compensation - means the compensation to Bechtel or its
Affiliates under a Technical Services Agreement which shall include certain of
Bechtel's costs, as described in 6.1(a)(i) and 6.1(a)(ii), plus a fee as
described in 6.1(a)(iii) or 6.1(b)(i) and 6.1(b)(ii) whichever applies.

Used Oil - means any hydrocarbon-based fluid comprised primarily of previously
refined oil that has been partially or wholly used for its intended purpose or
stored for its intended use. Used Oil includes without limitation, used
lubricating oil, used metalworking oil, used hydraulic oil, used line flush oil,
oil recovered from tank cleaning or condemnation operations, oil recovered from
oil-contaminated water, off-test oil and off-spec oil products, and other waste
lubricants of the types noted in this paragraph.

Alliance Agreement                Page 5 of 37
<PAGE>   6

Willful Misconduct - shall mean an act taken with the intent to violate a
manifest legal duty and with the knowledge that such act will cause injury or
damage to others.

ARTICLE l - ALLIANCE

1.1      The Parties hereby align themselves as a worldwide Alliance in
         accordance with the terms of this Agreement for the following purposes:

         Objectives of Alliance:

         Probex owns the ProTerra(TM) Process and desires to have ProTerra(TM)
         become the dominant technology globally in the Used Oil recycling
         market. Probex plans to achieve this objective through overall
         optimization of the ProTerra(TM) Process to achieve lower life cycle
         costs for Probex plants. Probex further plans to be an equity
         participant in most, if not all, plants using the ProTerra(TM) Process.
         As a start-up company with a technology that is not commercially
         proven, Probex recognizes the importance of successful completion and
         operation of the first plants using the ProTerra(TM) Process.

         Bechtel brings lube oil processing expertise and is the process owner
         of the Solvent Finishing Unit step, MP Refining(SM), in the
         ProTerra(TM) Process. Bechtel also has extensive experience in
         technology optimization, integrated FEL/EPC work processes, and global
         procurement, which are designed to achieve the goal of reduced total
         installed cost for plants built by Bechtel. Bechtel has successfully
         demonstrated these capabilities, having significantly reduced the
         capital costs of plants using other process technologies. In addition,
         Bechtel's experience and capability will help the Alliance achieve its
         goals of a cost-effective plant installation, short construction
         schedules, improved plant operability and reliability, safe
         construction and operation of each plant and a timely and efficient
         startup of each plant. Bechtel also has a global presence that may aid
         Probex in the international marketing of the ProTerra(TM) Process.
         Bechtel's willingness to provide cost, schedule, and performance
         guarantees, as contemplated in this Agreement and individual Project
         agreements, coupled with Bechtel's reputation within the financial
         community, is, and will continue to be, a key advantage for Probex in
         seeking equity investment and project financing.

         Through the Alliance, Probex and Bechtel will integrate their
         complementary strengths and resources in an effort to achieve the
         commercial viability of the ProTerra(TM) Process. The Alliance will
         work to improve the competitiveness of the ProTerra(TM) Process through
         optimization and process improvement, with the ultimate goal of reduced
         life-cycle costs. The Alliance will market the ProTerra(TM) Process
         internationally seeking to achieve significant market penetration in
         the refined Used Oil market, with the goal of increasing the revenue
         and profits for both Parties.

         Bechtel will provide a Contract Price for each Project as described in
         Article 6 of this Agreement and a schedule of each Project as described
         in Article 7 of this Agreement. Schedule guarantees will include
         provision for payment by Bechtel of liquidated damages

Alliance Agreement                Page 6 of 37
<PAGE>   7

         should the Project schedule not be met. Bechtel will also provide
         performance guarantees for the Services as described in Article 8 of
         this Agreement.

ARTICLE 2 -- PARTIES COMMITMENT TO THE PRO TERRA (TM) TECHNOLOGY

2.1      Bechtel agrees it will not license its MP Refining(SM) Process for use
         in processing of Used Oil unless it is included with the ProTerra(TM)
         Process.

2.2      Bechtel agrees it will not delay or withhold licenses for the MP
         Refining(SM) Process for incorporation into the ProTerra(TM) Process.
         Such MP Refining(SM) licenses will be issued under the terms of an
         agreed form of MP Refining(SM) license agreement, and if requested to
         do so by Probex, in addition to the MP Refining(SM) license agreement,
         Bechtel will provide the process guarantees and technical services for
         such project(s).

2.3      Subject to Article 2.2 above, Probex agrees to exclusively use the MP
         Refining(SM) Process as the finishing step in the ProTerra(TM) Process
         when a Solvent Finishing Unit is used.

2.4      Bechtel agrees it will not perform FEL or EPC services to design or
         construct used oil processing facilities for another processor of Used
         Oil.

2.5      Bechtel agrees to actively promote the ProTerra(TM) Process for the
         processing of Used Oil, consistent with the stated objectives of this
         Agreement.

ARTICLE 3 -- PARTIES COMMITMENT TO FEL AND EPC

3.1      Probex and Bechtel working together will develop economically
         competitive Projects (including but not limited to FEL and EPC) through
         actions such as the sharing of information during the Open Book Funding
         Cost Estimate process as well as the sharing and review of comparative
         project metrics on cost and schedule.

3.2      Probex and Bechtel agree to work together to improve the cost
         competitiveness of the ProTerra(TM) Process, including the development
         of standard templates and module designs, to enable the marketing of
         the ProTerra(TM) Process as a package product on a world-wide basis. In
         this regard, it shall be the goal of both Parties (without implying any
         commitment) to sufficiently test and prove the Pro Terra(TM) Process
         such that it will no longer be unproven technology; whereupon the
         Parties intend to commence discussions in good faith regarding the
         practicality of wrapping Bechtel's EPC performance guarantees, to
         include the Pro Terra(TM) Process.

3.3      Consistent with Article 3.1 above Probex agrees that Bechtel shall be
         Probex's exclusive contractor for the performance of any FEL work
         involving the processing of Used Oil with the Probex Pro Terra(TM)
         Process technology.

Alliance Agreement                Page 7 of 37
<PAGE>   8

3.4      Consistent with Article 3.1 above Probex agrees that Bechtel shall be
         Probex's exclusive contractor for the performance of EPC on Projects
         involving the processing of Used Oil with the Probex Pro Terra(TM)
         Process technology in which Probex or its Affiliates have the actual
         authority through management control or other effective governance of
         the Project to designate and/or select the EPC contractor.

3.5      Consistent with Article 3.4 above, Probex agrees, and is committed to
         use commercial best efforts, to promote Bechtel as the sole source EPC
         contractor on Probex joint venture Projects involving the processing of
         Used Oil with the Probex Pro Terra(TM) Process technology. Probex
         agrees to use commercial best efforts to introduce Bechtel to its
         prospective joint venture partners and, to the extent commercially
         reasonable, to actively engage Bechtel in Probex's discussions with
         such prospective joint venture partners concerning FEL and EPC
         activities.

3.6      In the event Bechtel is not the contractor for the performance of EPC
         on Projects involving the Probex Pro Terra(TM) Process technology, the
         use of Bechtel documents, other than documents developed during the FEL
         performed by Bechtel, will be governed by Article 9.

ARTICLE 4 - MANAGEMENT OF THE ALLIANCE

4.1      Probex and Bechtel have each designated company representatives who
         will have prime responsibility for this Alliance at an executive
         officer level ("Executive Sponsors"). The Executive Sponsors will be
         responsible for establishing the overall strategy and objectives of the
         Alliance, as well as for making the key decisions that impact the
         performance of the Alliance.

4.2      Bechtel has designated John Duty as its Executive Sponsor for the
         leadership of both the business and the technical/engineering aspects
         of the Alliance.

4.3      Probex has designated Charles M. Rampacek as its Executive Sponsor for
         the leadership of both the business aspects and technical/engineering
         aspects of the Alliance.

4.4      The Parties may each freely substitute or change its respective
         Executive Sponsor as desired with another member of the senior
         management of such Party, upon written notice to the other Party.

ARTICLE 5 - ALLIANCE ADVISORY GROUP

5.1      An Alliance Advisory Group will be established to provide strategic
         direction and to set priorities for the Alliance, consistent with the
         decisions and direction provided by the Executive Sponsors.

Alliance Agreement                Page 8 of 37
<PAGE>   9

5.2      The Alliance Advisory Group shall be comprised of up to six (6)
         members, with up to three (3) members being appointed by Probex and up
         to three (3) being appointed by Bechtel. Each member of the Alliance
         Advisory Group shall be an employee of their respective company. The
         initial members of the Alliance Advisory Group are:

<TABLE>
<CAPTION>
                      Probex                         Bechtel
                      ------                         -------
<S>                                                  <C>
                      Dave McNiel                    Mitch Clayman
                      Martin MacDonald               Jim Jackson
                      [to be named]                  John Dalton
</TABLE>

5.3      The Parties may each appoint, substitute or change its respective
         members on the Alliance Advisory Group by written notice to the other
         Party.

5.4      The Alliance Advisory Group shall meet either in person or by telephone
         as regularly as needed, but no less frequently than four (4) times per
         year. The purpose of these meetings will be to consider all matters
         affecting the operation and administration of the Alliance.

ARTICLE 6 - COMPENSATION

6.1      For work performed or technical services provided under a Technical
         Services Agreement, Probex will compensate Bechtel as follows:

         a)       For a Project where Bechtel will be the EPC contractor:

                  i)       Pay to Bechtel a multiple (to be agreed upon by the
                           Parties) of the actual Base Salary Hourly Rate of the
                           Bechtel personnel assigned to the performance of the
                           technical services, for each hour, or part thereof,
                           that such personnel are directly engaged in the
                           performance of the technical services, to cover
                           payroll and related costs, including employee
                           benefits and related labor costs, payroll burden,
                           overhead, computer-related expenses including
                           off-project support and software; telephone and
                           facsimile costs, document production and
                           reproduction, and other office services; and

                  ii)      Reimburse Bechtel for premium overtime, shift
                           differentials, or any other associated payroll or
                           overhead costs incurred by Bechtel in performing the
                           FEL or related work. Such reimbursement will only be
                           for work that is done with the prior written
                           authorization of Probex's project manager; and

                  iii)     [Confidential material redacted and filed separately
                           with the Commission]; and

                  iv)      The Technical Services Agreement will include terms
                           for concurrent payment for technical services.

         b)       For a Probex Project where Bechtel will not be the EPC
                  contractor, Probex and its joint venture partners shall:

Alliance Agreement                Page 9 of 37
<PAGE>   10

                  i)       [Confidential material redacted and filed separately
                           with the Commission]; and

                  ii)      Reimburse Bechtel for premium overtime, shift
                           differentials, or any other associated payroll or
                           overhead costs incurred by Bechtel in performing the
                           FEL or related work. Such reimbursement will only be
                           for work that is done with the prior written
                           authorization of Probex's project manager; and

                  iii)     The Technical Services Agreement will include terms
                           for concurrent payment for technical services.

         c)       Reimburse Bechtel for all reasonable and necessary direct
                  travel and living expenses directly related to the technical
                  services incurred by Bechtel personnel directly engaged in the
                  performance of the technical services (to the extent not
                  directly provided or paid for by Probex), including the cost
                  of air or land travel, lodging, meals, and incidental
                  expenses; and

         d)       Where Bechtel is the EPC contractor, Bechtel may earn
                  incentives for any documented cost savings identified in the
                  FEL including but not limited to incorporation of lessons
                  learned and innovative improvements as set forth in subsection
                  A of Exhibit 3.

6.2      For work performed in accordance with Articles 6.1(a) and (b) above,
         Bechtel shall maintain records and supporting documentation of costs
         for which it is entitled to compensation. Such records and
         documentation shall be kept in accordance with Bechtel's established
         policies, procedures and practices and generally accepted accounting
         principles consistently applied. After giving reasonable notice, Probex
         shall be allowed access to such records, during Bechtel's normal
         business hours during the performance of the technical services and for
         a period of one (1) year after completion or termination thereof, to
         the extent reasonably required to verify the payroll and other direct
         reimbursable costs (excluding established or agreed rates).

6.3      Probex will compensate Bechtel for EPC Services on a lump sum basis.
         The following methodology shall be employed in setting the Contract
         Price:

         a)       A Funding Cost Estimate for each Project will be developed
                  [Confidential material redacted and filed separately with the
                  Commission] as a deliverable under the FEL for each Project.

         b)       [Confidential material redacted and filed separately with the
                  Commission]

         c)       [Confidential material redacted and filed separately with the
                  Commission]

Alliance Agreement                Page 10 of 37
<PAGE>   11

         d)       The Contract Price will be the sum of Articles 6.3 (a), (b),
                  and (c) above.

6.4      The Contract Price and the Project schedule including the guaranteed
         completion date for each Project shall be adjusted in response to
         changes in the scope of the Services ordered by Probex, for changed
         conditions from those described in the scoping documents or other
         changes as set forth in the applicable EPC Contract.

         Specifically, "changes" shall include;

         a)   any force majeure event (to be defined in the applicable EPC
              Contract) having a direct and material impact on Bechtel's
              schedule or costs (such as storage costs and/or costs of
              de-mobilization, re-mobilization, and other costs to the extent
              not covered by insurance, subject to a per occurrence cap on such
              costs to be agreed by the Parties in the EPC Contract), subject to
              Bechtel's reasonably commercial best efforts to mitigate the
              affects of any such force majeure event on the Contract Price and
              schedule and reasonable promptness by Bechtel in submitting
              contingency plans and budgets to mitigate for such events;

         b)   failure or delay of Probex to perform its obligations as required
              in the EPC Contract, except in the case of Bechtel default;

         c)   discovery of any archaeological find at the site, to the extent
              not reasonably discoverable by site inspection (scope of any such
              site inspections for archaeological artifacts to be agreed by the
              Parties) which may be agreed to be performed by Bechtel;

         d)   discovery of unforeseen ground conditions at the site, to the
              extent not reasonably discoverable by site inspection (scope of
              any such site inspections for subsurface conditions to be agreed
              by the Parties) which may be agreed to be performed by Bechtel;

         e)   discovery of Hazardous Wastes or Materials which are not the
              responsibility of Bechtel;

         f)   revisions, additions, or deletions to job specification that are
              ordered by Probex, except if required to achieve compliance with
              job specifications or to correct omissions or errors made by
              Bechtel or it's Affiliates;

         g)   deficiencies in the performance of the Probex Pro Terra(TM)Process
              (excluding deficiencies in the Solvent Finishing Unit or any
              failure of the MP Refining(SM) Process);

         h)   suspension of the Project by Probex;

         i)   changes in law or regulation which have a material affect on the
              work and occur after the effective date of the applicable EPC
              Contract, and any such other matters as the Parties may agree in
              an EPC Contract.

         Without limiting the foregoing, Bechtel will be entitled to
         reimbursement for its time and expenses for the preparation of
         engineering, scheduling, and cost estimates expressly authorized by
         Probex in writing when considering possible changes.

6.5      Additional compensation in the form of incentives for outstanding
         performance may be earned by Bechtel, above the Contract Price as
         calculated in Article 6.3 (d) above, and shall be payable to Bechtel as
         set forth in subsection B of Exhibit 3.

Alliance Agreement                Page 11 of 37
<PAGE>   12

6.6      Payment for Services will be per an agreed milestone payment schedule
         and upon Bechtel or its Affiliate's completion of the agreed milestone
         events, all as shall be incorporated into the associated EPC Contract.

6.7      For Technical Services Agreements and EPC Contracts, interest will be
         accrued and payable to a Party on undisputed amounts that are due and
         remain unpaid after the payment due date. [Confidential material
         redacted and filed separately with the Commission]

6.8      The terms and conditions in this Agreement represent Bechtel's baseline
         risk/reward profile for future Projects. Specific Project agreements,
         which will take precedence over this Alliance Agreement, may have
         altered terms and conditions based on unique project requirements, in
         which case the compensation methodology and amounts as set forth in
         Article 6.3, will be adjusted in later Project agreements to maintain
         an equitable balance between risk and reward as provided for in this
         Agreement.

6.9      Probex will pay to Bechtel a license fee for use of the MP Refining(SM)
         Process per the terms of the applicable MP Refining(SM) License
         Agreement.

6.10     Some compensation due Bechtel may be deferred for other considerations
         by mutual consent of the Parties.

6.11     Bechtel acknowledges and accepts that Probex will seek to finance all
         or part of the Projects on a non-recourse basis, and agrees to
         cooperate with Probex to take such actions, enter into such documents
         and agreements and, to the extent commercially reasonable and not
         inconsistent with this Agreement, will do other acts and things
         necessary to achieve such project financing and to accommodate the
         reasonable demands of the Project's lenders (the "Lenders").

ARTICLE 7 - SCHEDULE

7.1      Bechtel's Project schedule will be developed as a deliverable under the
         FEL. Bechtel will guarantee a completion date as adjusted pursuant to
         the terms of the applicable EPC Contract, which will be supported by
         liquidated damages to cover Probex's finance costs and certain fixed
         costs during any schedule delay to the guaranteed completion date to
         the extent attributable to Bechtel under an EPC Contract. Unless
         otherwise provided for in the EPC Contract, the guaranteed completion
         date shall occur after the successful completion of the agreed
         performance testing of the plant, and shall be evidenced by the
         certification of an independent engineer for the Lenders stating that
         the Project was constructed by Bechtel in accordance with the EPC
         Contract and that all conditions for guaranteed completion have been
         met. Unless otherwise provided for in the EPC Contract, Probex will be
         responsible for commissioning, startup, and operation of the
         ProTerra(TM) Process, other than the MP Refining(SM) Process. Bechtel
         will be responsible for

Alliance Agreement                Page 12 of 37
<PAGE>   13

         achieving mechanical completion in time for Probex to commence
         commissioning, startup and operation per the project schedule. Upon
         filling the feed tanks to the MP Refining(SM) Process unit with design
         feed, Bechtel will be required to meet minimum performance criteria of
         the MP Refining Process by the contractually agreed guaranteed
         completion date. Notwithstanding anything to the contrary in this
         Agreement, except as stated in Article 3.2 (which remains as an
         Alliance goal and not as a Bechtel commitment), in no event will
         Bechtel warrant or guarantee the Pro Terra(TM) Process or otherwise be
         liable for any delays due to the deficient performance of the Pro
         Terra(TM) Process (other than for any deficiencies in Bechtel's design
         or workmanship or similar causes to the extent attributable to Bechtel,
         such as the delay or failure of the MP Refining(SM) Process to perform
         as guaranteed by Bechtel) or for delays in the testing of the Solvent
         Finishing Unit (if such testing is delayed by Probex's failure to
         deliver adequate feedstock for testing or otherwise due to delays in
         the testing of the Pro Terra(TM) Process unless such delays are due to
         Bechtel's failure to achieve mechanical completion by the scheduled
         contract date).

7.2      Bechtel shall assume risk of loss for damage to the Project until the
         completion date, as adjusted pursuant to the provisions of the
         applicable EPC Contract. After said date, risk of loss for damage to
         the Project shall be assumed by Probex and Probex shall obtain waivers
         of subrogation in favor of Bechtel and its Affiliates from its property
         insurers and shall release Bechtel and its Affiliates from liability
         for physical loss or damage to the Project subject to Bechtel's payment
         of an agreed amount per occurrence, for losses caused by Bechtel's
         negligence while performing warranty work. Except to the extent
         provided above, Bechtel and its Affiliates shall have no liability for
         such loss or damage to the Project property arising out of or related
         to its warranty obligations.

7.3      Throughout the duration of the Project and as part of the Contract
         Price, Bechtel shall provide Builder's Risk Insurance for the full
         replacement value of the Project and related insurance coverages such
         as, but not limited to, Delay in Start Up Insurance (ALOP), Marine
         Cargo and Comprehensive General Liability, and shall obtain such
         insurance from reputable insurers and with insurance brokers of its
         choice, and reasonably acceptable to Probex and its Lenders. Such
         insurance shall name Probex and its Lenders as additional insureds
         and/or loss payees and waive subrogation against Probex and its
         Lenders. The insurance coverages shall be subject to review by the
         Lenders and shall be in form, substance and limits customary in project
         finance projects of a size and nature similar to the Project.

ARTICLE 8 - LIABILITY EXCLUSIONS

The Parties agree that the liability limitations and releases set out in this
Article 8 shall apply to all Projects and shall be included in all EPC
Contracts.

8.1      Under no circumstances, even if caused by the gross negligence or
         Willful Misconduct of one of the Parties, shall either Party (their
         subcontractors and vendors, subject to an acceptable

Alliance Agreement                Page 13 of 37
<PAGE>   14

         form of mutual release) or its Affiliates be liable to the other Party
         or its Affiliates for any incidental, special, consequential or
         punitive damages including but not limited to loss or damage resulting
         from loss of use, loss of profits or revenues, cost of capital, loss of
         goodwill or like items of loss or damage arising out of or related to
         the Alliance or any agreements between the Parties and each Party
         hereby releases the other Party and its Affiliates from all such loss
         or damage.

8.2      The Parties will agree on a total limit of liability of Bechtel under
         the applicable terms of the EPC Contract for each Project, which will
         be capped at a percentage of the Contract Price. This total liability
         cap shall apply except in the case of Willful Misconduct by Bechtel
         supervisory personnel (or higher) or Bechtel's obligation to re-perform
         deficient engineering, for which no cap shall exist, or for Bechtel's
         obligation to reach mechanical completion which is capped at the value
         of the Contract Price or such other exceptions mutually agreed by the
         Parties. Schedule liquidated damages and performance liquidated damages
         will be separately subcapped as a percentage of Contract Price, and
         both subcaps will be subject to the total liability cap for all
         liquidated damages. The Parties will agree on a subcap for warranty
         claims which shall be a percentage of the Contract Price, provided the
         warranty subcap will be further subject to the overall total liability
         cap.

         Bechtel agrees that if the guaranteed project milestone, referenced in
         Article 7, is not achieved by the guaranteed completion date, then
         Bechtel shall pay to Probex or its Affiliate liquidated damages for
         each day of delay starting on the guaranteed completion date in
         achieving such milestone, subject to an agreed subcap as set forth in
         the preceding paragraph. To the extent the Parties agree, the payment
         of schedule liquidated damages will be subject to a grace period.

         The aggregate liability of Bechtel, its subcontractors, vendors, agents
         or employees, with respect to claims of Probex arising out of
         performance or non-performance of obligations under the Project
         agreement(s) shall not exceed the liability limitations agreed to by
         the Parties in such Project agreement(s) and Probex shall release
         Bechtel from any liability in excess thereof.

8.3      Each Party in the Project Agreements shall defend, indemnify and hold
         harmless the other Party against liability for personal injury to, and
         damage to the property of, each Party's employees and to third-parties
         to the extent of that Party's negligence.

8.4      Notwithstanding the provisions of Article 8.3 above, Probex hereby
         releases Bechtel and its Affiliates from all liability for loss or
         damage to property adjacent to the Project which is owned or in the
         custody of Probex and/or its Affiliates and Probex further agrees to
         obtain the necessary waiver of subrogation from the property insurers.

         To the extent that Probex will develop a Project that is "inside the
         fenceline" of (or immediately adjacent to) a "host" property owner,
         then Probex shall use its best efforts to obtain on behalf of both
         Probex and Bechtel, releases from liability for direct and
         consequential loss or damage to the "host's" adjacent or surrounding
         property.

Alliance Agreement                Page 14 of 37
<PAGE>   15

8.5      Subject to Bechtel's right to rely upon the adequacy, completeness, and
         sufficiency of the information provided by Probex, Bechtel warrants its
         professional engineering services and construction workmanship, the
         structural, mechanical, electrical and hydraulic integrity of plants
         engineered and constructed by Bechtel, as set forth in and limited by
         the terms and conditions of the applicable EPC Contract. Bechtel will
         also provide a process guarantee for the MP Refining(SM) Process as set
         forth in and limited by the terms and conditions of the applicable EPC
         Contract, if Bechtel is to perform the EPC Services, or of any separate
         process guarantee agreement(s), as applicable.

         Bechtel shall not be liable for deficiencies in any Project to the
         extent resulting from (i) the Pro Terra(TM) Process Technology (except
         for deficiencies in engineering or workmanship or to the extent covered
         by the MP Refining(SM) process guarantee), (ii) from design,
         engineering, procurement, or construction decisions made by Probex with
         written reservations of Bechtel, (iii) deficiencies in the Project
         systems and equipment resulting from decisions made at the written
         request of Probex, or (iv) as a result of willful or negligent acts of
         Probex or Probex's employees, agents or other contractors.

         Specific to 8.5 (ii) and (iii) above, Bechtel shall not be liable for
         deficiencies in the work or Services, including but not limited to
         performance deficiencies, to the extent resulting from the specific
         written direction or information of Probex relating to the design,
         engineering, procurement or construction of the Project, but only to
         the extent that Bechtel's reporting requirements give Probex (a) notice
         of a reservation in writing per a mutually agreed project procedure and
         within a reasonable time after the Probex requested change, and (b)
         Bechtel's reservations are not subsequently resolved and provided to
         Probex in writing per the procedure. Accordingly, any such deficiency
         in the work or Services about which Bechtel has not specifically
         reported as being resolved in accordance with subparagraph (b) of the
         preceding sentence, shall not be considered the result of Bechtel's
         failure to properly design, engineer, procure, or construct the
         Project, but shall instead be considered the result of a "decision made
         at the written request of Probex."

8.6      Probex, or its process insurer, will be liable for any process
         deficiencies in the Pro Terra(TM) Process technology except as
         otherwise stated in Article 8.5 above.

8.7      Bechtel shall only be responsible for removing, transporting, and
         disposing of Hazardous Wastes or Materials either brought on the site
         (excluding initial fills of chemicals and feedstock) by Bechtel or its
         Affiliates and subcontractors or produced or created as part of
         Bechtel's or its Affiliates' and subcontractors' construction activity
         on the site. Bechtel shall defend, indemnify, hold harmless and release
         Probex from liabilities arising out of such Hazardous Wastes or
         Materials for which Bechtel is responsible.

         Probex shall be responsible for all pre-existing Hazardous Wastes or
         Materials encountered during the work and Probex shall be responsible
         for Hazardous Wastes or Materials generated by Probex on the site,
         including initial fills of chemicals and feedstock. Other than
         Hazardous Wastes or Materials for which Bechtel is responsible under
         the

Alliance Agreement                Page 15 of 37
<PAGE>   16

         preceding paragraph of this Article 8.7, Probex shall be solely
         responsible for removing, transporting, and disposing of Hazardous
         Wastes or Materials on the site. Probex shall indemnify, hold harmless
         and release Bechtel from liabilities arising out of Hazardous Wastes or
         Materials pre-existing or generated by Probex at the site.

*

8.8      Bechtel's warranty obligations shall be subject to the liability
         limitations in the EPC Contract.

         Bechtel will warrant for one (1) year that the EPC work and the
         Services will have been performed in accordance with the EPC Contract,
         shall be free from defects in design, workmanship and title, shall
         conform in all material respects to the design documents in the EPC
         Contract; that all permanent plant equipment and materials shall be new
         and free from defects, unless otherwise specifically agreed to by the
         Parties. Notwithstanding Bechtel's one year warranty on equipment,
         Bechtel shall assign, to the extent assignable, all warranties of
         subcontractors and equipment suppliers.

         The warranty obligations and liabilities of Bechtel will not extend to
         any repairs, adjustments, alterations, replacements, or maintenance
         that may be required as a result of normal corrosion, erosion, noise
         level, or normal wear and tear in the operation of the Project, or as a
         result of Probex's failure to operate and maintain the plant after the
         completion date in accordance with good operating practices or as a
         result of Probex's operation of the Project at conditions of service at
         variance with the design documents or operating manuals to be
         deliverables under the EPC Contract.

         EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THE VARIOUS AGREEMENTS
         AND CONTRACTS BETWEEN THE PARTIES, BECHTEL MAKES NO OTHER WARRANTIES OR
         REPRESENTATIONS OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING
         ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PURPOSE, RELATING TO
         DESIGN OR OTHER SERVICES, OR TO EQUIPMENT OR MATERIALS, TO BE PROCURED
         BY BECHTEL.

     *   Each Party will be responsible for any product generated and its
         disposal during commissioning an testing of their respective processes
         of a Probex Project.

8.9      Bechtel shall have no liability for the work performed or for the acts
         or omissions of any third-party contractors that perform work directly
         for Probex on any of the Projects and Probex agrees to defend,
         indemnify, and hold Bechtel harmless for all claims of loss, damage, or
         injury arising out of or in connection with any work performed by such
         third-party contractors of Probex.

8.10     The waivers, disclaimers of liability, and releases from liability, set
         forth in this Agreement shall apply even in the event of the fault,
         negligence (in whole or in part), strict liability, breach of contract,
         or otherwise of the Party released or whose liability is waived,
         disclaimed or limited and shall extend to such Party's related or
         Affiliated entities and its and their directors, officers, employees
         and agents.

8.11     Each of the Parties represent that either it is the sole owner of its
         interest in this Alliance or that it is authorized to bind and does
         bind all owners with an interest in this Alliance to the

Alliance Agreement                Page 16 of 37
<PAGE>   17

         releases and limitations of liability and obligations set forth in this
         Agreement. Each Party further agrees that any future recipient of any
         interest in this Agreement will be bound by such obligations and
         releases and limitations of liability such that the total aggregate
         liability of each respective Party and such recipients shall not exceed
         the limits of liability set forth for that Party in the various
         agreements between the parties.

8.12     The remedies set forth in the EPC Contracts and the other Project
         agreements will be the sole and exclusive remedies of the Parties to
         such Project agreement(s) for the obligations and liabilities arising
         out of or in connection with such Project agreements.

ARTICLE 9 - OWNERSHIP OF DATA AND INTELLECTUAL PROPERTY RIGHTS

Ownership and use of Data for the ProTerra(TM) Process and the MP Refining(SM)
technology, and Intellectual Property Rights associated with same, are set out
in Exhibit 1.

Furthermore, Probex and its Affiliates shall not be permitted to use, provide,
or otherwise transfer Bechtel's proprietary software applications or Bechtel's
Key Activities for Success Execution methodology.

Notwithstanding the Intellectual Property Rights set out in Exhibit 1,
engineering, procurement, and construction documents produced in accordance with
Technical Services Agreements, and EPC Contracts will contain Confidential
Information (defined below) proprietary to Bechtel and/or Probex which is not to
be disclosed or used, in whole or in part, by anyone without the written
permission of Probex and/or Bechtel, as applicable, such permission not to be
unreasonably withheld. Should a contractor other than Bechtel perform EPC on a
Probex Project, Bechtel shall be held harmless by the selected EPC contractor
for its use of Bechtel prepared documents, other than documents prepared
specifically for that Probex Project.

ARTICLE 10 - CONFIDENTIAL INFORMATION

10.1     "Confidential Information" shall mean all information disclosed by
         either Probex or Bechtel to each other in writing, orally, or in any
         other form that is identified as confidential or proprietary or that,
         due to the nature of the information or the circumstances surrounding
         disclosure, should be treated as confidential or proprietary, including
         but not limited to financial plans, strategic plans, customer lists,
         technical documentation, software (excluding the object code), and
         business marketing information. The Party disclosing such Confidential
         Information shall be the "Disclosing Party" and the Party Receiving
         such Confidential Information shall be the "Receiving Party."
         Confidential Information shall not include, however, information (i)
         previously known to the Receiving Party before receipt from the
         Disclosing Party; (ii) independently developed by the Receiving Party
         without access to the Disclosing Party's information; (iii) acquired by
         the Receiving Party from a third party which is not under an obligation
         to the Disclosing Party not to disclose such information; or (iv) which
         is or becomes publicly available through no breach by the Receiving
         Party of this Agreement; provided however, that, any combination of
         features shall not be deemed to be within the foregoing

Alliance Agreement                Page 17 of 37
<PAGE>   18

         exceptions merely because individual features are in the public domain
         or in the Receiving Party's possession, but only if the combination
         itself is in the public domain, taught or suggested by another
         reference in the public domain, or in the Receiving Party's possession.

10.2     The Receiving Party shall maintain in confidence all Confidential
         Information received from the Disclosing Party for a period of ten (10)
         years, or such lesser period of time that the Parties may agree to,
         from receipt of such information, shall use such Confidential
         Information only as expressly contemplated by this Agreement, and shall
         not disclose any such Confidential Information to a third party, or use
         or duplicate any Confidential Information, except as expressly
         permitted hereunder or make any unauthorized use thereof.

10.3     The Receiving Party shall limit the disclosure of the Disclosing
         Party's Confidential Information to those of its employees who have a
         need to access such Confidential Information for their performance of
         this Agreement or their performance in relation to a Project. The
         Receiving Party shall treat such Confidential Information with the same
         degree of care against disclosure or unauthorized use which it affords
         to its own information of a similar nature, provided that the Receiving
         Party shall at minimum implement commercially reasonable measures to
         prevent such disclosure or unauthorized use. The Receiving Party shall
         ensure that its employees, engineers, contractors, or agents who will
         have access to the Disclosing Party's Confidential Information shall be
         under an obligation to abide by the secrecy obligations imposed on the
         Receiving Party pursuant to this Agreement. Further, the Receiving
         Party shall ensure that the Disclosing Party has the right to enforce
         any secrecy obligation imposed on an engineer or contractor that is
         provided access to Confidential Information.

10.4     In the event the Receiving Party receives a subpoena or other validly
         issued administrative or judicial process requesting any portion of the
         Confidential Information of the Disclosing Party, the Receiving Party
         shall promptly notify the Disclosing Party and tender to it defense of
         such demand. Unless the demand shall have been timely limited, quashed
         or extended, the Receiving Party shall thereafter be entitled to comply
         with such subpoena or other process to the extent permitted by law. If
         requested by the Disclosing Party to whom the defense has been
         tendered, the Receiving Party shall cooperate (at the expense of the
         Disclosing Party) in the defense of a demand.

10.5     The Receiving Party agrees that the unauthorized disclosure or use of
         the Disclosing Party's Confidential Information may cause irreparable
         harm and significant and immeasurable injury. Accordingly, and
         notwithstanding the provisions of Article 16, the Receiving Party
         agrees that the Disclosing Party shall have the right to seek and
         obtain an injunction against any breach of this Article 10 without
         payment of a bond prior to entry of an order enjoining the disclosure
         or unauthorized use of such Confidential Information.

10.6     Upon any termination of this Agreement for cause, at the Disclosing
         Party's request, the Receiving Party shall, at the Disclosing Party's
         option, either (i) return to the Disclosing Party all copies of the
         Disclosing Party's Confidential Information in tangible (including

Alliance Agreement                Page 18 of 37
<PAGE>   19

         electronic) form; or (ii) destroy all copies of Disclosing Party's
         Confidential Information in tangible (including electronic) form which
         are not returned, and certify to the Disclosing Party that all such
         copies of such Confidential Information have been destroyed.

ARTICLE 11 - DISCLOSURE

11.1     In the event Probex is required to disclose this Agreement, contracts,
         or any work products to the United States Securities and Exchange
         Commission (SEC), Probex and Bechtel will consult and agree in advance
         on which sections will be redacted and filed separately with the SEC.

         It is agreed that any work product prepared by Bechtel shall not be
         disclosed in connection with any public securities offering without
         Bechtel's prior written consent. Any such work product shall only be
         disclosed to sophisticated investors with prior notification to Bechtel
         and with an appropriate disclaimer putting such investors on notice of
         the requirement to perform their own due diligence prior to making any
         investment. Extracts of such work product which attribute the extracted
         information to Bechtel will only be disclosed to third parties after
         prior notification to Bechtel and after these third parties have
         entered into appropriate confidentiality agreements with Probex and
         contractual relationship with Probex pursuant to which such third
         parties are required to have access to such excerpts in connection with
         the performance of their duties to Probex. Otherwise, such extracts of
         such work product will not be disclosed to third parties without
         Bechtel's prior review.

         Work product is defined as all information and documents produced by
         Bechtel pursuant to its contractual obligations to Probex.

11.2     In the event Bechtel is required to disclose this Agreement, contracts,
         or any work products to the United States Securities and Exchange
         Commission (SEC), Probex and Bechtel will consult and agree in advance
         on which sections will be redacted and filed separately with the SEC.

         It is agreed that any work product prepared by Probex shall not be
         disclosed in connection with any public securities offering without
         Probex's prior written consent. Any such work product shall only be
         disclosed to sophisticated investors with prior notification to Probex
         and with an appropriate disclaimer putting such investors on notice of
         the requirement to perform their own due diligence prior to making any
         investment. Extracts of such work product which attribute the extracted
         information to Probex will only be disclosed to third parties after
         prior notification to Probex and after these third parties have entered
         into appropriate confidentiality agreements with Bechtel and
         contractual relationship with Bechtel pursuant to which such third
         parties are required to have access to such excerpts in connection with
         the performance of their duties to Bechtel. Otherwise, such extracts of
         such work product will not be disclosed to third parties without
         Probex's prior review.

         Work product is defined as all information and documents produced by
         Probex pursuant to its contractual obligations to Bechtel.

Alliance Agreement                Page 19 of 37
<PAGE>   20

11.3     All media releases, public announcements and public disclosures and
         filings by Bechtel or Probex relating to this Agreement or its subject
         matter, including without limitation, promotional or marketing material
         (but not including any announcement intended solely for internal
         distribution at Bechtel or Probex, as the case may be, or any
         disclosure or filing made to satisfy legal, accounting or regulatory
         requirements beyond the reasonable control of Bechtel or Probex, as the
         case may be) shall be coordinated with and approved by Bechtel and
         Probex prior to release thereof. Disclosures made by either Party to
         satisfy legal, accounting or regulatory requirements applicable to such
         Party shall be coordinated with and approved by the other Party in
         advance to the extent reasonably possible.

ARTICLE 12 - NO PARTNER RELATIONSHIP INTENDED

This Agreement is not intended to create a joint venture or partnership between
Probex and Bechtel or to imply any commitment on either Party's part except as
expressly provided herein. Neither Probex nor Bechtel shall have any authority
to bind or act for, or assume any obligation, or responsibility on behalf of the
other Party.

ARTICLE 13 - MARKETING AND  DEVELOPMENT ASSISTANCE

Bechtel shall from time to time but not less than quarterly, meet with Probex in
order to establish and agree upon opportunities, if any, for Bechtel to pursue
in the areas of marketing and development. During such meetings, Bechtel will
make available information which encompasses advice, knowledge and know-how
within the personal possession, transferability and control of Bechtel and used
by Bechtel in marketing capital improvement projects to clients that utilize the
services of world class engineering, procurement and construction companies.
Examples of the information and assistance referred to herein include but are
not limited to the following:

         a)   Sharing with Probex planning and marketing techniques for market
              research, pricing and license support services.

         b)   Exchanging with Probex information about competitive factors and
              trends in the market place.

         c)   Providing routine assistance on Probex initiated sales calls to be
              reimbursed at Bechtel's standard hourly rates plus expenses.

         d)   [Confidential material redacted and filed separately with the
              Commission]

Alliance Agreement                Page 20 of 37
<PAGE>   21

         e)   [Confidential material redacted and filed separately with
              the Commission]

ARTICLE 14 - SOLE OWNER

Probex represents and warrants that, as of the date of execution of this
Agreement, Probex is the sole owner of the ProTerra(TM) Process. Probex
constituent general or limited partners admitted after the effective date of
this Agreement, Probex' successors and assigns, and any future recipient of any
ownership or other property interest in the ProTerra(TM) Process shall be bound
by the releases, limitations on liability, and other protections of Bechtel set
forth in this Agreement and all other

Alliance Agreement                Page 21 of 37
<PAGE>   22

contractual agreements between the Parties. Probex will obtain the express
written agreement of each such person to be bound by such release, limitations
on liability and other protections of Bechtel herein, and such written
agreements to be in form and substance reasonably satisfactory to Bechtel.

Bechtel represents and warrants that, as of the date of execution of this
Agreement Bechtel is the sole owner of the MP Refining(SM) Process. Bechtel's
constituent general or limited partners admitted after the effective date of
this Agreement, Bechtel's successors and assigns, and any future recipient of
any ownership or other property interest in the MP Refining(SM) Process shall be
bound by the releases, limitations on liability, and other protections of Probex
set forth in this Agreement and all other contractual agreements between the
Parties. Bechtel will obtain the express written agreement of each such person
to be bound by such release, limitations on liability and other protections of
Probex herein, and such written agreements to be in form and substance
reasonably satisfactory to Probex.

ARTICLE 15 APPLICABLE LAW

The construction, validity and performance of this Agreement shall be governed
by Texas law.

ARTICLE 16 ALTERNATE DISPUTE RESOLUTION

16.1     If, at any time, any question, dispute or difference shall arise
         between the Parties, arising out of this Agreement or related thereto
         or to its validity, either Party may as soon as reasonably practicable,
         give to the other Party notice in writing of the existence of such
         question, dispute or difference, specifying its nature and the point at
         issue. The Executive Sponsors will meet for negotiations at a mutually
         agreed time and place and attempt to resolve the issue. If the matter
         has not been resolved within thirty (30) calendar days of the
         commencement of such negotiations, the Parties agree to consider
         resolution of the dispute through some form of Alternative Dispute
         Resolution (ADR) process which is mutually acceptable to the Parties.

16.2     If the Parties do not agree on an ADR process within thirty (30)
         calendar days, or if the matter has not been resolved in the ADR
         process within sixty (60) calendar days after the Parties have agreed
         to submit to the ADR process, each Party shall have the right to
         institute arbitration proceedings under the arbitration rules of the
         American Arbitration Association.

16.3     All disputes arising in connection with this Agreement shall be fully
         and finally settled under the Construction Industry Rules of the
         American Arbitration Association, by one or more arbitrators appointed
         in accordance with those Rules, on the basis of the terms of this
         Agreement, relevant trade usages and general principles of law.
         Arbitration awards rendered shall not be subject to any form of appeal,
         but judgment thereon may be entered in any court or application may be
         made to any court for a judicial acceptance of the award and an order
         of enforcement as the case may be.

Alliance Agreement                Page 22 of 37
<PAGE>   23

16.4     Arbitration will be in the English language, and shall be held in a
         location mutually acceptable to the Parties, or if the Parties are
         unable to agree on a location at a site determined by the American
         Arbitration Association.

ARTICLE 17- TERMINATION

17.1     This Agreement shall be in effect from the effective date of execution
         of this Agreement and shall remain in effect until it is terminated
         under the terms of this Agreement.

17.2     This Agreement shall be in effect from the date of execution of this
         Agreement and shall continue in full force and effect for five (5)
         year's from said date. Should neither Party cancel the Agreement at the
         end of the initial five year term, the Agreement shall continue on a
         year-to-year basis unless it is renewed for a term greater than one
         year by the mutual agreement of the Parties. Either Party may terminate
         this Agreement effective on the Agreement renewal date, provided such
         Party has given written notice of its intent to terminate at least
         three (3) months prior to the applicable renewal date.

17.3     PROBEX AGREES THAT IT SHALL HAVE NO RIGHT TO TERMINATE THIS AGREEMENT
         FOR CONVENIENCE, AND SHALL ONLY HAVE THE RIGHT TO TERMINATE THIS
         AGREEMENT FOR A MATERIAL BREACH BY BECHTEL OR ITS AFFILIATES OF ITS
         PROVISIONS, INCLUDING SPECIFICALLY, ARTICLE 19.

         BECHTEL AGREES THAT IT SHALL HAVE NO RIGHT TO TERMINATE THIS AGREEMENT
         FOR CONVENIENCE, AND SHALL ONLY HAVE THE RIGHT TO TERMINATE THIS
         AGREEMENT FOR A MATERIAL BREACH BY PROBEX OR ITS AFFILIATES OF ITS
         PROVISIONS, INCLUDING SPECIFICALLY, ARTICLE 19.

17.4     Probex reserves the right to terminate for convenience any individual
         Project to be undertaken pursuant to this Agreement, although Probex
         will not have the right to terminate an EPC Contract for the sole
         purpose of substituting another contractor.

17.5     Bechtel reserves the right to suspend or terminate individual EPC
         Contracts for non-payment, to the extent therein provided.

17.6     If this Agreement is terminated or not renewed then Articles 8
         ("Liability Exclusions"), 9 ("Ownership of Data and Intellectual
         Property Rights"), and 10 ("Confidential Information") of this
         Agreement shall survive such termination or non-renewal of this
         Agreement.

ARTICLE 18 - ORDER OF PRECEDENCE

In the event of a conflict between any of the following items, they shall take
precedence in the order listed:

         a)   Individual Project agreements for any Project in the following
              order of precedence, as applicable:

Alliance Agreement                Page 23 of 37
<PAGE>   24

               (i)      EPC Contract

               (ii)     Other Project agreements, the order of precedence of
                        which to be mutually agreed by the Parties for each
                        Project (regardless of whether such Project agreements
                        are dated before or after the effective date of this
                        Agreement).

         b)   This Alliance Agreement

         c)   The Master License Agreement

ARTICLE 19 - FAIR OPERATION OF AGREEMENT

In entering into this Agreement, Bechtel and Probex recognize that it is
impracticable to make provision for every contingency which may arise during the
life of the Agreement. Bechtel and Probex concur in the principle that the
Agreement shall operate between them with fairness and good faith, and if, in
the course of the performance of this Agreement, an infringement of this
principle is anticipated or disclosed, then Bechtel and Probex shall promptly
consult together in good faith in an endeavor to agree upon such action as may
be necessary to remove the cause or causes of such infringement.

ARTICLE 20 - APPROVED  MODULE  FABRICATORS

Exhibit 2 contains an approved lists of module fabricators for the ProTerra(TM)
Process. This approved list of module fabricators may be modified by mutual
consent of Probex and Bechtel.

ARTICLE 21 - NOTICES

All notices required to be given under any provision of this Agreement by either
Party hereto shall be given by certified mail return receipt requested or via
facsimile, addressed to the office of the Party named in this Agreement, as
follows, subject to any changes occurring at one Party and to be promptly
notified to the other Party:

<TABLE>
<S>                                       <C>
         Bechtel Corporation              Probex Corporation
         3000 Post Oak Blvd.              13355 Noel Rd., Ste. 1200
         Houston, Texas 77056             Dallas, Texas 75240

         Attn: Mitch Clayman              Attn: David J. McNiel

         Tel: 713/235-3386                Tel: 972-788-4772
         Fax: 713/235-4494                Fax: 972-980-7068
</TABLE>

ARTICLE 22 - ASSIGNMENT

Neither Party shall assign its obligations under this Agreement without the
prior written consent of the non-assigning Party, provided, however, that a
Party may assign any of its rights or obligations hereunder to a related entity
subject to the assigning Party remaining fully responsible and liable towards
the non-assigning Party for the performance by such related entity of any
assigned obligations.

Alliance Agreement                Page 24 of 37
<PAGE>   25

ARTICLE 23 - COMPLIANCE WITH LAW

23.1     Foreign Corrupt Practices Act. The Parties agree that they at all times
         shall comply with, and that all rights and obligations hereunder shall
         be subject to, all applicable laws, regulations, orders and decrees of
         any court or governmental authority. With respect to any international
         Projects, each Party represents and warrants that it and its employees:
         (i) are familiar with the provisions and requirements of the Foreign
         Corrupt Practice Act (the "FCPA"), a Federal Law of the United States
         of America, including the record keeping requirements thereof; and (ii)
         recognizes that full compliance with the letter and spirit of the FCPA
         is the corporate policy of the Parties. In all matters relating to this
         Agreement, each Party will conduct itself in full compliance with the
         FPCA.

23.2     Import Export Regulations. Each Party acknowledges and agrees that any
         exportation of technical information and data relating to the
         ProTerra(TM) Process and the MP Refining(SM) Process shall be made in
         strict compliance with all laws and regulations of the United States,
         including the United States Department of Commerce's export control
         regulations.

ARTICLE 24 -- ENTIRE AGREEMENT

This Agreement, its appendices and Exhibits shall constitute the entire
agreement between the Parties relating to the subject matter hereof and, except
for previously executed contracts between the Parties, shall supersede all prior
writings, agreements and understandings, whether written or oral, relating to
the subject matter thereof.

This Agreement may be amended only in writings executed by the authorized
representatives of Probex and Bechtel.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
by their respective duly authorized representatives on the date set forth below,
to be effective, however, for all purposes, as of the day and year first
hereinabove written.

BECHTEL CORPORATION                      PROBEX CORPORATION

By:                                      By:
       -------------------------------          -------------------------------

Name:                                    Name:
       -------------------------------          -------------------------------

Title:                                   Title:
       -------------------------------          -------------------------------

Date:                                    Date:
       -------------------------------          -------------------------------

Alliance Agreement                Page 25 of 37
<PAGE>   26

                                    EXHIBIT 1
               OWNERSHIP OF DATA AND INTELLECTUAL PROPERTY RIGHTS

         1.1 Ownership of Background Data and IP Rights Therein

         All Data, and all copyrights, design rights, patents, trademarks, trade
secrets, and other intellectual property rights including such intellectual
property rights contained in any Data (collectively, "IP Rights") owned,
developed or prepared by Probex prior to the date of this Agreement or otherwise
independently developed or acquired thereafter (collectively, "Probex Background
Data and IP Rights") shall remain the property of Probex. All Data and IP Rights
in such Data owned, developed or prepared by Bechtel prior to the date of this
Agreement hereof or otherwise independently developed or acquired thereafter
(collectively, "Bechtel Background Data and IP Rights") shall remain the
property of Bechtel.

         1.2 Use of Background Data.

         (a) Bechtel Background Data and IP Rights. Ownership of all Bechtel
Background Data and IP Rights disclosed to Probex or used by Bechtel in
connection with this Agreement shall remain vested in Bechtel, but Bechtel
hereby grants, and Probex accepts such grant of, a non-exclusive right to use
such Bechtel Data and IP Rights, except for Bechtel's MP Refining(SM) Process
Background Data and IP Rights, to Probex, and to any third party whom Probex has
authorized or may in the future properly authorize to use, copy, or modify such
Bechtel Data and IP Rights solely in connection with the construction of Used
Oil processing plants for Probex, its Affiliates and Subsidiaries (as
hereinbelow defined).

         (b) Probex Background Data and IP Rights. Ownership of all Probex
Background Data and IP Rights disclosed to or used by Bechtel in connection with
this Agreement shall remain vested in Probex. Bechtel may use such Probex
Background Data and IP Rights solely as needed to perform technical services for
Probex or Services under any EPC Contract.

         (c) Third Party Background Data and IP Rights. In respect of any Data
or IP Rights vested in any third party that are to be supplied to Probex, but
not prepared or developed by

Alliance Agreement                Page 26 of 37
<PAGE>   27

Bechtel, under or in connection with this Agreement, Bechtel shall obtain from
such third party (with any associated costs to Probex's account (except in the
case of the MP Refining(SM) Process) with Probex's prior approval) permission,
waiver, or license as may be necessary to satisfy the obligations of Bechtel
under and to fulfill the purpose of this Agreement.

         (d) Confidentiality of Background Data. The Parties agree that their
respective Background Data and IP Rights shall be treated as Confidential
Information as provided in Article 10 of this Agreement.

         1.3 Pretreatment Stage Developed Data and IP Rights.

         (a) Ownership. With regard to the pretreatment stage of the
ProTerra(TM) Process, ownership of all Data and IP Rights (excluding Bechtel
Background Data and IP Rights) prepared or developed by Bechtel (collectively,
"Pretreatment Stage Developed Data and IP Rights") shall vest in Probex. All
such Pretreatment Stage Developed Data and IP Rights shall be clearly marked,
where possible, as Probex's property.

         (b) Restriction on Use. Bechtel may use the Pretreatment Stage
Developed Data and IP Rights solely as needed to provide technical services to
Probex or Services under any EPC Contract. To the extent that a Party's
Background Data is incorporated, used or referred to in any Pretreatment Stage
Developed Data or IP Rights therein, that Party's use, rights or ownership in
its Background Data shall not be restricted, affected, or limited in any way, to
the extent herein provided.

         1.4 Distillation Stage Developed Data and IP Rights.

         (a) Ownership. With regard to the distillation stage of the
ProTerra(TM) Process, ownership of all Data and IP Rights (excluding Bechtel
Background Data) prepared or developed by Bechtel hereunder (collectively,
"Distillation Stage Developed Data and IP Rights") shall vest in Probex. All
such Distillation Stage Developed Data and IP Rights shall be clearly marked,
where possible, as Probex's property.

Alliance Agreement                Page 27 of 37
<PAGE>   28

         (b) License to Use. Probex hereby grants to Bechtel, and Bechtel
accepts such grant of, a non-exclusive, irrevocable, royalty-free license to
use, copy or modify the Distillation Stage Developed Data and IP Rights in
connection (i) with the subject matter of this Agreement, or (ii) with a plant
that refines oil into various by-products, provided that the plant does not
manufacture or refine oil products from Used Oil. To the extent that a Party's
Background Data is incorporated, used or referred to in any Distillation Stage
Developed Data or IP Rights therein, that Party's use, rights or ownership in
its Background Data shall not be restricted, affected, or limited in any way, to
the extent herein provided.

         1.5 Finishing Stage Developed Data and IP Rights

         (a) Joint Ownership. With regard to the finishing stage of the
ProTerra(TM) Process ("Finishing Stage"), ownership of all Data and IP Rights
(excluding Bechtel or Probex Background Data and IP Rights) prepared or
developed by Bechtel or Probex (collectively, "Finishing Stage Developed Data
and IP Rights") shall jointly vest in Bechtel and Probex. Any joint ownership by
Probex of the Finishing Stage Developed Data and IP Rights shall not be deemed
to permit Probex to utilize the Solvent Finishing Unit without an MP
Refining(SM) license agreement. All such Finishing Stage Developed Data and IP
Rights shall be clearly marked, where possible, as the property of Bechtel and
Probex.

         (b) Rights to Use. Except as expressly provided in this sub-section,
neither Party may use the Finishing Stage Developed Data and IP Rights without
the prior written consent of the other Party. Notwithstanding any other
provision of this Agreement, or any other written or oral agreement between the
Parties, the Parties may use the Finishing Stage Developed Data and IP Rights as
follows:

    (i)  Use in Connection with This Agreement. Each Party and its
         representatives, agents, and contractors have a non-exclusive,
         irrevocable, royalty-free right to use, copy, or modify the Finishing
         Stage Developed Data and IP Rights in connection with the subject
         matter of this Agreement or of any project agreements.

Alliance Agreement                Page 28 of 37
<PAGE>   29

    (ii) Probex Use. Probex and its Affiliates, representatives, agents, and
         contractors have an exclusive (subject only to the joint rights of
         Bechtel), irrevocable, royalty-free right to use, copy, or modify the
         Finishing Stage Developed Data of the IP rights therein solely in
         connection with plants that manufacture or refine oil products from
         Used Oil; provided, however, that if this Agreement is terminated,
         neither Probex nor its Affiliates shall have the right to use, copy or
         modify the Finishing Stage Developed Data or the IP Rights therein with
         regard to future plants that manufacture or refine oil products from
         Used Oil, but the foregoing shall not affect any existing projects, to
         the extent that project agreements for such projects have been
         executed, that survive the Alliance Agreement.

         (iii) Bechtel Use. Bechtel and its representatives, agents, and
         contractors have an exclusive (subject only to the joint rights of
         Probex), irrevocable, royalty-free right to use the Finishing Stage
         Developed Data in connection with any plant that refines oil into
         various by-products, provided that the plant does not manufacture or
         refine oil products from Used Oil; provided, however, that if this
         Agreement is terminated, neither Bechtel nor its Affiliates shall have
         the right to use, copy or modify the Finishing Stage Developed Data or
         the IP Rights therein with regard to future plants that manufacture or
         refine oil products from Used Oil, but the foregoing shall not affect
         any existing projects, to the extent that project agreements for such
         projects have been executed, that survive the Alliance Agreement.

         (iv) To the extent that a Party's Background Data is incorporated, used
         or referred to in any Finishing Stage Developed Data or IP Rights
         therein, that Party's use, rights or ownership in its Background Data
         shall not be restricted, affected, or limited in any way, to the extent
         herein provided.

         1.6 Balance of Plant Developed Data and IP Rights.

         (a) Ownership. With regard to the Balance of Plant, that is, any
facilities other than those used in the ProTerra(TM) Process and Bechtel's MP
Refining(SM) Process, ownership of all Data

Alliance Agreement                Page 29 of 37
<PAGE>   30

and IP Rights (excluding Bechtel or Probex Background Data and IP Rights)
prepared or developed by Bechtel or Probex hereunder (collectively, "Balance of
Plant Developed Data and IP Rights") shall vest jointly in Probex and Bechtel.
All such Balance of Plant Developed Data and IP Rights shall be clearly marked,
where possible, as the property of Probex and Bechtel.

         (b) Restrictions on Use. Each Party shall have the right to use,
modify, copy, license, or transfer the Balance of Plant Developed Data and IP
Rights without payment of additional compensation to the other Party.
Notwithstanding the foregoing, Bechtel shall not use or license for use the
Balance of Plant Developed Data and IP Rights in any Used Oil refining facility.
To the extent that a Party's Background Data is incorporated, used or referred
to in any Balance of Plant Developed Data or IP Rights therein, that Party's
use, rights or ownership in its Background Data shall not be restricted,
affected, or limited in any way, to the extent herein provided.

         1.7 Third Party Obligation to Assign Developed Data.

         Bechtel shall use commercially reasonable efforts to obtain from any
third party, including any subcontractor of Bechtel, the assignment, or the
obligation to assign, to Probex any Data, and IP Rights regarding the
pretreatment, distillation or finishing stage of the ProTerra(TM) Process, where
such Data is (i) prepared or developed by that third party under or in
connection with a Project agreement and (ii) an improvement or other
modification of any process encompassing Confidential Information used in the
pretreatment, distillation or finishing stages; provided that, if a third party
refuses to assign such rights, Bechtel shall obtain Probex's written consent
prior to allowing the subcontractor to perform services under any Project
agreement.

         1.8 Each Party's Obligation to Produce Developed Data.

         Upon termination of this Agreement or Bechtel's completion of Services
for a Project, each Party, at the other Party's request, shall furnish a copy of
any and all Pretreatment Stage, Distillation Stage, Finishing Stage or Balance
of Plant Developed Data to the requesting Party, including but not limited to
copies, in electronic and any other requested format, as may be

Alliance Agreement               Page 30 of 37
<PAGE>   31

reasonably requested, of any designs, drawings, plans, specifications, databases
and reports prepared in connection with such Project.

         1.9 Assistance in Prosecuting Patents.

         (a) Notice of Intent to File a Patent Application. Each Party ("Filing
Party") shall provide to the other Party ("the Notified Party") written notice
fifteen (15) calendar days prior to filing an application for patent protection
where the application claims an invention that includes Pretreatment Stage,
Distillation Stage, Finishing Stage or Balance of Plant Developed Data. The
notice shall identify the inventors and scope of the invention claimed in the
application.

         (b) Jointly Owned Applications. Subject to a Party's entitlement to
joint ownership under the terms of this Agreement, if the Notified Party desires
to jointly own the above application, and any patent that issues therefrom, then
the Notified Party must provide written notice thereof to the Filing Party
within sixty (60) calendar days after receipt of notice pursuant to Paragraph
1.9(a), above. For any such joint application, the Parties shall (i) mutually
agree to all matters regarding the application, including the choice of counsel,
the content of the application, inventors named therein, scope of the claims,
and any subsequent modifications or amendments thereto, (ii) share evenly all
expenses, attorneys' fees, and costs associated with the prosecution of that
application and maintenance of any patent that issues therefrom, and (iii)
assist in the prosecution of that application, including the search for and
preparation, review, and execution of documents at their own expense as needed.

         (c) Individually Owned Applications. If the Notified Party fails to
provide the Filing Party timely written notice within sixty (60) calendar days
after receiving notice under Paragraph 1.9(b), above, then the Filing Party
shall be: (i) the sole owner of the application and any patents that issue
therefrom, and (ii) solely responsible for all matters regarding the
application, including any expenses, attorneys' fees, and costs associated with
the prosecution of the application and maintenance of any patent that issues
therefrom. For any such application, the Notified Party shall assist in the
prosecution of that application, including the production, preparation, review,
or execution of documents, at the Filing Party's expense, as needed for the
prosecution of that application or transfer of all title therein to the Filing
Party.

Alliance Agreement               Page 31 of 37
<PAGE>   32

         (d) No Attack on Patents. To the extent allowed by law, neither Party
shall challenge, or assist any other entity in challenging, the validity or
enforceability of any patent that issues from an application filed or prosecuted
pursuant to Paragraphs 1.9(b) or (c)above.

         (e) Further Assurances by Others. Each Party shall require its
employees and any party functioning in the role of subcontractor, consultant,
representative or agent and providing services under any Project agreement as
applicable, to execute any and all papers, including assignments to Probex or
Bechtel, as the case may be, and to take such other actions as may be necessary
for the procurement by Probex or Bechtel of intellectual property rights
throughout the world.

         1.10 Requirement for Restrictive Covenants. For any entity other than
Bechtel providing services to Probex regarding the design, construction,
testing, or operation of a plant for processing Used Oil using Bechtel's
Background Data and IP Rights, Probex shall use commercially reasonable efforts
to require, to the extent permitted by the laws of the applicable jurisdiction,
that such entity or, at Probex's option, specific individuals of such entity
providing services to Probex using Bechtel's Background Data and IP Rights,
shall execute a restrictive covenant precluding it or them from performing those
specific services utilizing Bechtel's Background Data and IP Rights on any other
plant for refining Used Oil, except for a plant owned (in whole or in part) by
Probex or its Affiliates or Subsidiaries, for a period of five (5) years from
that individual's or entity's completion of such services provided to Probex.

         1.11 Additional Definition. For the purposes of this Exhibit 1, the
term "Subsidiary" shall mean all corporations of which such designated company
now or hereafter owns or controls, directly or indirectly, not less than fifty
percent (50%) of the stock having the right to vote for directors thereof. For
the purpose of this definition, the stock owned or controlled by a company shall
be deemed to include all stock owned or controlled, directly or indirectly, by
any other company of which it owns or controls not less than fifty percent (50%)
of the stock having the right to vote for directors thereof. The foregoing shall
include without limitation any organization not in corporate form such as a
partnership if the designated company, directly or indirectly, has acquired a
proprietary or equity interest, whether as a partner or otherwise, in such
organization of not less than fifty percent (50%).

Alliance Agreement               Page 32 of 37
<PAGE>   33

                                    EXHIBIT 2

                       LIST OF APPROVED MODULE FABRICATORS

The following vendors are approved module fabricators. Additional vendors may be
added to this list of approved fabricators by the mutual agreement of Bechtel
and Probex.

[Confidential material redacted and filed separately with the Commission]

Alliance Agreement               Page 33 of 37
<PAGE>   34

                                    EXHIBIT 3

                                   INCENTIVES

The foregoing incentives shall be reflected, as appropriate and as applicable,
in each EPC Contract for a Project (subject to Lender approval), and the Parties
further agree and stipulate that all costs and incentives for any particular
Project, to the extent applicable, must be evidenced in the particular EPC
Contract for such Project, and that nothing in the Alliance Agreement or this
Exhibit 3 thereto shall be deemed to modify or otherwise affect the final
Contract Price for any Project, as agreed in a mutually signed EPC Contract for
a Project. In the event of any conflict or inconsistency between the terms of a
mutually signed EPC Contract for a Project and the terms of the Alliance
Agreement (including this Exhibit 3), the Parties agree that the terms of the
EPC Contract shall supercede and control.

A. FEL INCENTIVE

REDUCTIONS IN TOTAL INSTALLED COST

Beginning with the first project after Wellsville, and for each subsequent
project thereafter, the Alliance Advisory Group will meet to discuss an
appropriate FEL incentive for each Probex Project, to be incorporated in the
applicable Technical Services Agreement. The purpose of the FEL incentive will
be to incentivise Bechtel to reduce the installed cost of each Probex Project
(after Wellsville) based upon information gained from the Wellsville plant (and
subsequent plants) once completed, together with the knowledge gained during the
design, engineering, construction, commissioning, start-up, testing and
operation of the Wellsville plant and later plants, as applicable, with the goal
of achieving the greatest possible reductions in the installed costs of future
plants. Early in the FEL work for each Probex Project, the Alliance Advisory
Board will establish an appropriate target price for the lump sum price of the
Probex Project, as well as the percentage of cost reduction to be shared with
Bechtel. If the lump sum price for a Probex Project, as calculated in accordance
with Article 6.3, is less than the established target price for such Probex
Project, then Probex will share the cost savings with Bechtel.

B. EPC INCENTIVES

SHORTENED SCHEDULE:

If a Project reaches the guaranteed completion date (to be defined in each
applicable EPC Contract) in advance of the guaranteed completion date (to be
mutually agreed and specified by

Alliance Agreement               Page 34 of 37
<PAGE>   35

the Parties in each EPC Contract), then Probex will pay Bechtel an incentive
amount, in an amount to be agreed. [Confidential material redacted and filed
separately with the Commission]

OPERABILITY / STREAM FACTOR

Each Project will be designed such that it processes a certain throughput of dry
feedstock per year into on-spec products. This design is based upon a daily
operating rate (throughput) and an annual stream factor.

If any plant achieves a dry feedstock throughput in excess of the target stream
factor (to be agreed upon in each EPC Contract), then Probex will pay Bechtel
and amount to be agreed in each EPC Contract, as applicable, [Confidential
material redacted and filed separately with the Commission].

If incremental investment, i.e., additional capital cost or other capital
investment in equipment or manpower is required to exceed the target stream
factors, then downward adjustments in the incentive payments will be made at the
discretion of Probex.

SAFETY

If Bechtel, as an EPC contractor for a Project, achieves a project-specific
safety result in excess of a target for Recordable Injury Rate (RIR) for both
Bechtel employees and their sub-contractors assigned to the Project (as shall be
mutually agreed and set forth each EPC Contract), Probex will pay Bechtel as an
incentive to improve safety and the RIR, in an amount to be agreed in each EPC
Contract, as applicable.

MANAGEMENT JUDGMENT

Probex and Bechtel Executive Sponsors will meet annually for the purpose of
reviewing the contributions of each Party to the Alliance and determining what,
if any, additional incentive payment will be made to Bechtel for its
contributions to the Alliance.

Alliance Agreement               Page 35 of 37<PAGE>   1
                                                                   EXHIBIT 10.25

================================================================================

                            STOCK PURCHASE AGREEMENT

                          DATED AS OF FEBRUARY 2, 2001

                                 BY AND BETWEEN

                                  PROBEX CORP.

                                       AND

                       UNITED INFRASTRUCTURE COMPANY, LLC

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                               PAGE

<S>      <C>      <C>                                                                 <C>
1.       PURCHASE AND SALE OF COMMON STOCK...............................................2
         (a)      Purchase of Common Stock...............................................2
         (b)      Closing Dates..........................................................2
         (c)      Price Per Share Calculation............................................2
         (d)      Form of Payment........................................................3

2.       REPRESENTATIONS AND WARRANTIES OF INVESTOR......................................3
         (a)      Investment Purpose.....................................................3
         (b)      Accredited Investor Status.............................................3
         (c)      Reliance on Exemptions.................................................3
         (d)      Information............................................................3
         (e)      Governmental Review....................................................4
         (f)      Transfer or Resale.....................................................4
         (g)      Legends................................................................4
         (h)      Authorization; Enforcement.............................................5

3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY...................................5
         (a)      Organization and Qualification.........................................5
         (b)      Authorization; Enforcement.............................................5
         (c)      Capitalization.........................................................6
         (d)      Acknowledgement of Debt Obligation.....................................7
         (e)      Issuance of the Shares.................................................7
         (f)      No Conflicts...........................................................7
         (g)      SEC Documents; Financial Statements....................................8
         (h)      Undisclosed Liabilities................................................8
         (i)      Absence of Certain Changes.............................................9
         (j)      Absence of Litigation..................................................9
         (k)      Suppliers and Customers...............................................10
         (l)      Intellectual Property.................................................10
         (m)      No Materially Adverse Contracts.......................................11
         (n)      Tax Status............................................................11
         (o)      Certain Transactions..................................................11
         (p)      Disclosure............................................................12
         (q)      Acknowledgment Regarding Investor's Purchase of the Shares............12
         (r)      No Integrated Offering................................................12
         (s)      No Brokers............................................................12
         (t)      Permits; Compliance...................................................12
         (u)      Environmental Matters.................................................13
         (v)      Title to Property.....................................................13
         (w)      Insurance.............................................................13
         (x)      Internal Accounting Controls..........................................14
         (y)      Labor Relations.......................................................14
         (z)      Foreign Corrupt Practices.............................................14
         (aa)     Benefit Plans.........................................................14
         (bb)     No Manipulation of Stock..............................................14
         (cc)     Accountants...........................................................15
         (dd)     Contracts.............................................................15
         (ee)     Solvency..............................................................15
         (ff)     Investment Company....................................................15
         (gg)     Proprietary Information and Inventions Agreements.....................15
</TABLE>

                                      -i-
<PAGE>   3

                                TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
SECTION                                                                                    PAGE

<S>      <C>      <C>                                                                      <C>
4.       COVENANTS OF THE COMPANY AND INVESTOR...............................................15
         (a)      Commercially Reasonable Efforts............................................15
         (b)      Form D; Blue Sky Laws......................................................15
         (c)      Reporting Status...........................................................15
         (d)      Use of Proceeds............................................................16
         (e)      Financial Information......................................................16
         (f)      Listing of the Shares......................................................16
         (g)      Corporate Existence........................................................16
         (h)      Business...................................................................16

5.       CONDITIONS TO THE COMPANY'S OBLIGATION AT CLOSING - SECOND TRANCHE INVESTMENT.......16
         (a)      Payment of Purchase Price..................................................16
         (b)      Execution of Strategic Alliance Agreement..................................17
         (c)      Accuracy of Representations................................................17
         (d)      Investor's Performance.....................................................17
         (e)      No Litigation..............................................................17

6.       CONDITIONS TO INVESTOR'S OBLIGATION AT CLOSING - SECOND TRANCHE INVESTMENT..........17
         (a)      Delivery of Strategic Alliance Agreement...................................17
         (b)      Delivery of Common Stock Certificates......................................17
         (c)      Delivery of Compliance Certificate.........................................17
         (d)      Accuracy of Representations................................................17
         (e)      The Company's Performance..................................................18
         (f)      No Proceedings.............................................................18
         (g)      No Claim Regarding Stock Ownership or Sale Proceeds........................18
         (h)      No Prohibition.............................................................18
         (i)      No Litigation..............................................................18
         (j)      Common Stock Trading.......................................................18
         (k)      Opinion of Counsel.........................................................18
         (l)      Blue Sky Law Filings.......................................................18
         (m)      Certificate of the Company's Transfer Agent................................19
         (n)      Other Documents............................................................19

7.       CONDITIONS TO COMPANY'S OBLIGATION AT CLOSING - THIRD TRANCHE INVESTMENT............19
         (a)      Payment of Purchase Price..................................................19
         (b)      Execution of EPC Agreement.................................................19
         (c)      Accuracy of Representations................................................19
         (d)      Investor's Performance.....................................................19
         (e)      No Litigation..............................................................19

8.       CONDITIONS TO investor's OBLIGATION at closing - third tranche investment...........19
         (a)      Execution of EPC Agreement.................................................20
         (b)      Delivery of Common Stock Certificates......................................20
         (c)      Delivery of Compliance Certificate.........................................20
         (d)      Satisfaction with Terms and Conditions of Wellsville Project Debt..........20
         (e)      Accuracy of Representations................................................20
</TABLE>

                                      -ii-
<PAGE>   4

                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
SECTION                                                                                    PAGE

<S>      <C>      <C>                                                                      <C>
         (f)      The Company's Performance..................................................20
         (g)      No Proceedings.............................................................20
         (h)      No Claim Regarding Stock Ownership or Sale Proceeds........................20
         (i)      No Prohibition.............................................................21
         (j)      No Litigation..............................................................21
         (k)      Common Stock Trading.......................................................21
         (l)      Opinion of Counsel.........................................................21
         (m)      Blue Sky Law Filings.......................................................21
         (n)      Certificate of the Company's Transfer Agent................................21
         (o)      Other Documents............................................................21

9.       FIRST TRANCHE ADJUSTMENT OBLIGATION OF THE COMPANY..................................21

10.      SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION..............22
         (a)      Survival of Representations, Warranties and Covenants......................22
         (b)      Indemnification............................................................22
         (c)      Claims for Indemnification; Defense of Indemnified Claims..................22

11.      GENERAL PROVISIONS..................................................................23
         (a)      Governing Law..............................................................23
         (b)      Counterparts; Signatures by Facsimile......................................23
         (c)      Headings...................................................................23
         (d)      Severability...............................................................23
         (e)      Specific Performance.......................................................23
         (f)      Entire Agreement; Amendments...............................................23
         (g)      Notices....................................................................24
         (h)      Successors and Assigns.....................................................24
         (i)      Third Party Beneficiaries..................................................25
         (j)      Publicity..................................................................25
         (k)      Further Assurances.........................................................25
         (l)      Limited Recourse...........................................................25
         (m)      Waiver.....................................................................25
         (n)      No Strict Construction.....................................................25

EXHIBIT A         Form of Registration and Investor's Rights Agreement........................a
EXHIBIT B         Form of Additional Right to Purchase Agreement..............................b
EXHIBIT C         Disclosure Schedule.........................................................c
</TABLE>

                                     -iii-
<PAGE>   5

                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (this "Agreement"), is made as of
February 2, 2001, by and between Probex Corp., a Delaware corporation, with
headquarters located at 13355 Noel Road, Suite 1200, Dallas, Texas 75240 (the
"Company"), and United Infrastructure Company, LLC, a Delaware limited liability
company ("Investor").

         WHEREAS, the Company is an energy technology company commercializing
its proprietary re-processing technology (ProTerra(TM)), intended for the
purification, recycling, and upgrading of used lubricating oils.

         WHEREAS, the Company is engaged in the early stages of developing its
first domestic production facility, to be located in Wellsville, Ohio, which is
intended to convert waste lubricating oils into premium base oils, fuel oil and
asphalt flux or modifier (the "Wellsville Project").

         WHEREAS, Investor is an affiliate of Bechtel Enterprises Holdings,
Inc., a Delaware corporation ("BEn"), which is an affiliate of Bechtel
Corporation, a Nevada corporation ("Bechtel"). Bechtel is an investor in the
Company and holds restricted shares of the Company's common stock.

         WHEREAS, the Company has entered into negotiations with Bechtel
respecting a strategic alliance under which the Company would engage Bechtel for
the engineering, procurement and construction of the Company's plant facilities,
including the Wellsville Project.

         WHEREAS, pursuant to that certain Stock Purchase Agreement, dated as of
October 12, 2000, Investor purchased Five Hundred Thousand (500,000) shares of
the Company's common stock, par value $.001 per share (the "Common Stock") with
a purchase price per share of Two Dollars ($2.00) (the "First Tranche Price Per
Share"), for an aggregate purchase price of One Million Dollars ($1,000,000.00)
(the "First Tranche Investment').

         WHEREAS, upon the terms and conditions set forth herein, the Company
has authorized the issuance and sale of, and Investor wishes to purchase,
additional shares of Common Stock, in two additional tranches, as set forth
below.

         WHEREAS, the Company and Investor are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by Rule 506 under Regulation D ("Regulation D") as promulgated by the United
States Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "Securities Act").

         WHEREAS, contemporaneous with the execution and delivery of this
Agreement, the parties hereto are executing and delivering (a) a Registration
and Investor's Rights Agreement, in the form attached hereto as Exhibit A (the
"Registration Rights Agreement"), pursuant to which the Company has agreed to
provide certain registration rights under the Securities Act and the rules and
regulations promulgated thereunder, and applicable state securities laws; and
(b) an Additional Right to Purchase Agreement, in the form attached hereto as
Exhibit B (the "Additional Right to Purchase Agreement"), pursuant to which the
Company has agreed to provide Investor with the opportunity to make additional
equity investments in the Company in certain circumstances.

                                      -1-
<PAGE>   6

         NOW THEREFORE, the Company and Investor hereby agree as follows:

         1. PURCHASE AND SALE OF COMMON STOCK.

                  (a) Purchase of Common Stock. Subject to the terms, conditions
and obligations of this Agreement, on the Closing Dates (as defined below), the
Company shall issue and sell to Investor and Investor agrees to purchase from
the Company, certain shares of Common Stock as described below in two separate
tranches (the "Shares"), for an aggregate purchase price of One Million Dollars
($1,000,000.00) (the "Second Tranche Investment") and Three Million Dollars
($3,000,00.00) (the "Third Tranche Investment"), respectively (the "Purchase
Price"), with a purchase price per Share and the resulting number of Shares to
be issued to be determined in accordance with the formulae set forth in clause
(c) of this Section 1 (the "Price Per Share").

                  (b) Closing Dates. The completion of the purchase and sale of
the Shares shall occur as follows:

                           (i) Second Tranche Closing Date. The closing of the
Second Tranche Investment shall occur two business days following the
satisfaction or waiver of each of the conditions set forth in Section 5 and
Section 6 hereof (the "Second Tranche Closing Date").

                           (ii) Third Tranche Closing Date. The closing of the
Third Tranche Investment shall occur two business days following the
satisfaction or waiver of each of the conditions set forth in Section 7 and
Section 8 hereof (the "Third Tranche Closing Date"). For purposes of this
Agreement, each of the Second Tranche Closing Date and the Third Tranche Closing
Date may be referred to separately as the "Closing Date," or collectively as the
"Closing Dates."

                  (c) Price Per Share Calculation.

                           (i) Second Tranche Price Per Share.

                                    (A) The Price Per Share, subject to
adjustment, for the Second Tranche Investment shall be the lesser of (1) ninety
percent (90%) of the closing sale price per share of Common Stock quoted on the
American Stock Exchange (the "AMEX") on the date hereof, (2) the trailing
average of the closing sale price per share of Common Stock quoted on the AMEX
for the thirty (30) business days immediately preceding the Second Tranche
Closing Date, and (3) the average price per share paid in connection with any
private placement offering of the Common Stock in the period between the date
hereof and the Second Tranche Closing Date (the "Second Tranche Price Per
Share").

                                    (B) Adjustment. If, within forty-five (45)
days following the Second Tranche Closing Date, the Company shall issue shares
of Common Stock pursuant to a public offering or a private placement and the
issuance price per share of such Common Stock is less than the Second Tranche
Price Per Share, then the number of Shares issued to Investor hereunder shall be
adjusted and additional Shares shall be issued so that the aggregate number of
Shares issued to Investor with respect to the Second Tranche Investment shall be
equal to the dollar amount of the Second Tranche Investment divided by the
lowest price per share paid by any other investor in the public offering or
private placement (rounded up or down, as applicable, to the nearest whole
Share) during such 45-day period. The Company shall, within five (5) business
days after the occurrence of any event requiring such adjustment, notify
Investor of the adjustment and cause such additional Shares to be issued to
Investor.

                                       -2-
<PAGE>   7

                           (ii) Third Tranche Price Per Share.

                                    (A) The Price Per Share, subject to
adjustment, for the Third Tranche Investment shall be the lesser of (1) ninety
percent (90%) of the closing sale price per share of Common Stock quoted on the
AMEX on the date hereof, (2) the trailing average of the closing sale price per
share of Common Stock quoted on the AMEX for the thirty (30) business days
immediately preceding the Third Tranche Closing Date, and (3) the average price
per share paid in connection with any private placement offering of the Common
Stock between the date hereof and the Third Tranche Closing Date (the "Third
Tranche Price Per Share").

                                    (B) Adjustment. If, at any time prior to the
Third Tranche Closing Date, events affecting the capital markets cause the
trading price per share of the Common Stock to drop 25% or more below either the
First Tranche Price Per Share or the Second Tranche Price Per Share, then, prior
to the Third Tranche Closing Date, the parties hereto shall agree upon an
equitable adjustment in the parameters used to determine the Third Tranche Price
Per Share (by way of example and without limitation, a market price discount
factor) to reflect the perceived higher market risk.

                  (d) Form of Payment. Upon each Closing Date, (i) Investor
shall pay the Purchase Price for the Shares to be issued and sold to it at that
Closing by wire transfer of immediately available funds to the Company, in
accordance with the Company's written wiring instructions, against delivery of
duly executed certificates representing the number of Shares which Investor is
purchasing, and (ii) the Company shall deliver such certificates duly executed
on behalf of the Company to Investor or, if so designated by Investor, in the
name of a nominee designated by Investor, against delivery of the Second Tranche
Investment or Third Tranche Investment, as the case may be.

         2. REPRESENTATIONS AND WARRANTIES OF INVESTOR. Investor represents and
warrants to the Company that:

                  (a) Investment Purpose. Investor is purchasing the Shares for
its own account for investment only and not with a present view towards the
public sale or distribution thereof, except pursuant to sales registered or
exempted from registration under the Securities Act.

                  (b) Accredited Investor Status. Investor is an "accredited
investor" as that term is defined in Rule 501(a) of Regulation D promulgated
under the Securities Act.

                  (c) Reliance on Exemptions. Investor understands that the
Shares are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities
laws, and that the Company is relying upon the truth and accuracy of, and
Investor's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of Investor set forth herein in order to
determine the availability of such exemptions and the eligibility of Investor to
acquire the Shares.

                  (d) Information. Investor and its advisors have been furnished
with all materials relating to the business, finances and operations of the
Company and materials relating to the offer and sale of the Common Stock which
have been requested by Investor or its advisors. Investor and its advisors have
been afforded the opportunity to ask questions of the Company. Neither such
inquiries nor any other due diligence investigation conducted by Investor or any
of its advisors or representatives shall modify, amend or affect Investor's
right to

                                      -3-
<PAGE>   8

rely on the Company's representations and warranties contained in Section 3
hereof. Investor understands that its investment in the Shares involves a
significant degree of risk.

                  (e) Governmental Review. Investor understands that no United
States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Shares.

                  (f) Transfer or Resale. Investor understands that:

                           (i) except as provided in the Registration Rights
Agreement, the Shares have not been and are not being registered under the
Securities Act or any applicable state securities laws, and may not be
transferred unless (a) subsequently included in an effective registration
statement thereunder, (b) Investor shall have delivered to the Company an
opinion of counsel (which opinion shall be reasonably acceptable to the Company)
to the effect that the Shares to be sold or transferred may be sold or
transferred pursuant to an exemption from such registration, (c) sold or
transferred to an "affiliate" (as defined in Rule 144, promulgated under the
Securities Act (or a successor rule) ("Rule 144")), or (d) sold pursuant to Rule
144;

                           (ii) any sale of such Shares made in reliance on Rule
144 may be made only in accordance with the terms of said Rule and further, if
said Rule is not applicable, any resale of such Shares under circumstances in
which the seller (or the person through whom the sale is made) may be deemed to
be an underwriter (as that term is defined in the Securities Act) may require
compliance with some other exemption under the Securities Act or the rules and
regulations of the SEC thereunder; and

                           (iii) neither the Company nor any other person is
under any obligation to register such Shares under the Securities Act or any
state securities laws or to comply with the terms and conditions of any
exemption thereunder (in each case, other than pursuant to the Registration
Rights Agreement). Notwithstanding the foregoing or anything else contained
herein to the contrary, the Shares may be pledged as collateral in connection
with a bona fide margin account or other lending arrangement.

                  (g) Legends. Investor understands that until such time as the
Shares have been registered under the Securities Act as contemplated by the
Registration Rights Agreement, the Shares shall bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed
against transfer of the certificates for such Shares):

                  "The securities represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended. The
                  securities have been acquired for investment and may not be
                  sold, hypothecated, transferred or assigned in the absence of
                  an effective registration statement for the securities under
                  said Act, or an opinion of counsel, in form, substance and
                  scope reasonably acceptable to Probex Corp., that registration
                  is not required under said Act or unless sold pursuant to Rule
                  144 under said Act. Notwithstanding the foregoing, this
                  security may be pledged in connection with a bona fide margin
                  account."

         The legend set forth above shall be removed and the Company shall issue
a certificate without such legend to the holder of any Shares upon which it is
stamped, if, unless otherwise required by applicable state securities laws, (i)
such Shares are registered for sale under an

                                      -4-
<PAGE>   9

effective registration statement filed under the Securities Act and disposed of
in a bona fide sale, (ii) such holder provides the Company with an opinion of
counsel, in form, substance and scope reasonably acceptable to the Company, to
the effect that a public sale or transfer of such Shares may be made without
registration under the Securities Act and such sale or transfer is effected, or
(iii) such holder provides the Company with reasonable assurances that such
Shares can be sold pursuant to Rule 144 under the Securities Act (or a successor
rule thereto) without any restriction as to the number of Shares acquired as of
a particular date that can then be immediately sold. Investor agrees to sell all
Shares, including those represented by a certificate(s) from which the legend
has been removed, in compliance with applicable prospectus delivery
requirements, if any (including any amendment to any of the foregoing).

                  (h) Authorization; Enforcement. This Agreement, the
Registration Rights Agreement and the Additional Right to Purchase Agreement
have been duly and validly authorized, executed and delivered on behalf of
Investor and are valid and binding agreements of Investor, enforceable in
accordance with their terms.

         3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as (1)
otherwise described in the Company's Schedule 14A, Form 10-SB, current reports
on Form 8-K and regular reports on Form 10-QSB and Form 10-KSB as filed
(including any amendment(s) to any of the foregoing) by the Company with the SEC
(the "SEC Documents"), (2) otherwise described in any of the Company's press
releases since December 31, 1999 (including the documents incorporated by
reference therein, the "Company Information"), or (3) disclosed in the
disclosure schedule to this Agreement (the "Disclosure Schedule"), attached
hereto as Exhibit C, which qualifies the following representations and
warranties in their entirety and which shall be updated and delivered to
Investor at least ten (10) business days prior to any Closing Date, the Company
hereby represents and warrants to and covenants with Investor, as follows:

                  (a) Organization and Qualification. The Company and each
Subsidiary (as defined below), is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction in which it is
incorporated, with full power and authority (corporate and other) to own, lease,
use and operate its properties and to carry on its business as described in the
SEC Documents as and where now owned, leased, used, operated and conducted. The
Company does not have an equity investment in any other person other than the
Subsidiaries listed in Schedule 3(a) of the Disclosure Schedule. The Company and
each Subsidiary is duly qualified as a foreign corporation to do business and is
in good standing in every jurisdiction in which its ownership or use of property
or the nature of the business conducted by it makes such qualification
necessary, except where the failure to be so qualified or in good standing would
not have a Material Adverse Effect. For purposes of this Agreement, "Material
Adverse Effect" means any material adverse effect on the business, operations,
assets, financial condition or prospects of the Company or any Subsidiary, taken
as a whole, or on the transactions contemplated hereby or by the agreements or
instruments to be entered into in connection herewith. "Subsidiary" (or
collectively, "Subsidiaries") means any corporation or other organization,
whether incorporated or unincorporated, in which the Company owns, directly or
indirectly, any equity or other ownership interest.

                  (b) Authorization; Enforcement. (i) The Company has all
requisite corporate power to enter into and perform this Agreement, the
Registration Rights Agreement and the Additional Right to Purchase Agreement,
and to consummate the transactions contemplated hereby and thereby and to issue
the Shares in accordance with the terms hereof, (ii) the execution and delivery
of this Agreement, the Registration Rights Agreement and the Additional

                                      -5-
<PAGE>   10

Right to Purchase Agreement by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by the
Company's Board of Directors, and no further consent or authorization of the
Company, its Board of Directors, or its stockholders is required, (iii) this
Agreement, the Registration Rights Agreement and the Additional Right to
Purchase Agreement have been duly executed and delivered, and each such document
is a legal, valid and binding obligation of the Company enforceable against the
Company, in accordance with their terms.

                  (c) Capitalization. As of January 12, 2001, the authorized
capital stock of the Company consists of:

                           (i) One Hundred Million (100,000,000) shares of
Common Stock, of which twenty six million two hundred twenty six thousand five
hundred thirty four (26,226,534) shares were outstanding, all of which are duly
authorized, validly issued, fully paid and nonassessable.

                           (ii) Ten Million (10,000,000) shares of Preferred
Stock, $.001 par value (the "Preferred Stock"), of which five hundred fifty
thousand (550,000) shares have been designated as Series A 10% Cumulative
Convertible Preferred Stock, and five hundred thirty five thousand (535,000) of
which are outstanding and are duly authorized, validly issued, fully paid and
nonassessable.

                           (iii) Since January 12, 2001, there has been (x) no
material increase in the number of shares of Common Stock outstanding (except
for shares issued upon exercise of options and warrants to purchase shares of
Common Stock outstanding on the date hereof), and (y) no issuance of shares of
Preferred Stock of the Company. Schedule 3(c)(iii) of the Disclosure Schedule
discloses all outstanding options or warrants for the purchase of, or other
rights to purchase or subscribe for, or securities convertible into or
exchangeable for, or otherwise entitling the holder to acquire, Common Stock or
other capital stock of the Company, or any contracts or commitments to issue or
sell Common Stock or other capital stock of the Company or any such options,
warrants, rights or other securities; and from the date hereof until each
Closing Date, as appropriate, there has been no material change in the amount or
terms of any of the foregoing except for (i) the grant of options to purchase
shares of Common Stock pursuant to the Company's stock option plans in effect on
the date of this Agreement or as such stock option plans are contemplated to be
amended as of the date of this Agreement, (ii) the conversion of convertible
securities outstanding on the date hereof, and (iii) the issuance of any shares
of Common Stock or securities convertible into shares of Common Stock for which
the Investor has received any applicable adjustment in accordance with Section
1(c)(i)(B) above.

                           (iv) The Company has duly reserved from its
authorized and unissued shares of Common Stock the full number of shares
required for (a) all options, warrants, convertible securities, exchangeable
securities, and other rights to acquire shares of Common Stock which are
outstanding, and (b) all shares of Common Stock and options and other rights to
acquire shares of Common Stock which may be issued or granted under the stock
option and similar plans which have been adopted by the Company or any
Subsidiary. Each outstanding class or series of securities for which any
antidilution adjustment will occur is identified on Schedule 3(c)(iv) of the
Disclosure Schedule attached hereto, together with the amount of such
antidilution adjustment for each such class or series. The outstanding shares of
Common Stock and outstanding options, warrants and other securities entitling
the holders to purchase or otherwise acquire Common Stock have been duly
authorized and validly issued. None of the outstanding shares of Common Stock or
options, warrants and other such securities has been issued in violation of the
preemptive rights of any securityholder of the Company. The offers and

                                      -6-
<PAGE>   11

sales of the outstanding shares of Common Stock and options, warrants and other
rights to acquire Common Stock were at all relevant times either registered
under the Securities Act and applicable state securities laws or exempt from
such requirements. Except as set forth on Schedule 3(c)(iv), there are no
stockholders agreements, voting agreements or other similar agreements with
respect to the Common Stock to which the Company is a party. Except as set forth
on Schedule 3(c)(iv), no holder of any of the Company's securities has any
rights, "demand," "piggy-back" or otherwise, to have such securities registered
by reason of the Company's intention to file, filing or effectiveness of the
registration statement on Form SB-2, Form S-1 or Form S-3, if applicable,
registering the Shares for resale (the "Registration Statement").

                           (v) The Company is furnishing to Investor true and
correct copies of the Company's Certificate of Incorporation, as in effect on
the date hereof ("Certificate of Incorporation"), the Company's By-laws, as in
effect on the date hereof (the "By-laws"), and the forms of all securities
convertible into or exercisable for Common Stock of the Company and the material
rights of the holders thereof in respect thereto.

                  (d) Intentionally Omitted

                  (e) Issuance of the Shares. The Shares to be issued pursuant
to this Agreement will be duly authorized, validly issued, fully paid and
non-assessable, free and clear of all liens and encumbrances, and will not
subject the holder thereof to personal liability by reason of being such holder.
There are no preemptive or similar rights of any stockholder of the Company or
any other person to acquire any of the Shares. The Common Stock is listed for
trading on the AMEX and (1) the Company and the Common Stock meet the criteria
for continued listing and trading on the AMEX; (2) the Company has not been
notified since January 1, 1996 by either the National Association of Securities
Dealers, Inc. (the "NASD") or the AMEX, of any failure or potential failure to
meet the criteria for continued listing and trading on the AMEX; (3) no
suspension of trading in the Common Stock is in effect; and (4) the Company does
not reasonably anticipate that the Common Stock will be delisted by the AMEX in
the foreseeable future. The Company knows of no reason that the Common Stock
will not be eligible for continued listing on the AMEX. The Shares to be issued
pursuant to this Agreement shall have been approved for listing on the AMEX (or
any other exchange or quotation system on which the Common Stock of the Company
is then listed) promptly after issuance.

                  (f) No Conflicts. Except as set forth in Schedule 3(f) of the
Disclosure Schedule, the execution, delivery and performance of this Agreement,
the Registration Rights Agreement and the Additional Right to Purchase Agreement
by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby will not (i) conflict with or result in a
violation of any provision of the Certificate of Incorporation or the By-laws,
or (ii) violate or conflict with, or result in a breach of any provision of, or
constitute a default (or an event which with notice or lapse of time or both
could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company or any Subsidiary is a party, or result in a
violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations) applicable to the Company or
any Subsidiary or by which any property or asset of the Company or any
Subsidiary is bound or affected, except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect. Neither
the Company nor any Subsidiary is in violation of its certificate of
incorporation, by-laws or other organizational documents and neither the Company
nor any Subsidiary is in default, and no event has occurred which with notice or
lapse of time or both could put the Company or any Subsidiary in default, under,
and

                                      -7-
<PAGE>   12

neither the Company nor any Subsidiary has taken any action or failed to take an
action that would give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture instrument to which
the Company or any Subsidiary is a party or by which any property or assets of
the Company or any Subsidiary is bound or affected, except for possible defaults
as would not, individually or in the aggregate, have a Material Adverse Effect.
Except as specifically contemplated by this Agreement and as required under the
Securities Act and any applicable state securities laws, the Company is not
required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency or any regulatory or
regulatory agency in order for it to execute, deliver or perform any of its
obligations under this Agreement, the Registration Rights Agreement or the
Additional Right to Purchase Agreement in accordance with the terms hereof or
thereof. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence have been
obtained or effected on or prior to the date hereof. The Company and each
Subsidiary are unaware of any facts or circumstances which might give rise to
any of the foregoing.

                  (g) SEC Documents; Financial Statements.

                           (i) The Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the "Exchange Act") and any other material reports or
documents required to be filed with the SEC. The Company has delivered to
Investor, true and complete copies of the SEC Documents. As of their respective
dates, the SEC Documents complied in all material respects with the requirements
of the Exchange Act and the rules and regulations of the SEC promulgated
thereunder applicable to the SEC Documents, and none of the SEC Documents, at
the time they were filed with the SEC, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein,
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

                           (ii) As of their respective dates, the financial
statements of the Company included in the SEC Documents complied as to form in
all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto. Such financial statements
have been prepared in accordance with United States generally accepted
accounting principles ("GAAP"), consistently applied, during the periods
involved (except (1) as may be otherwise indicated in such financial statements
or the notes thereto, or (2) in the case of unaudited interim statements, to the
extent they may not include footnotes or may be condensed or summary statements)
and fairly present in all material respects, the consolidated financial position
of the Company and its consolidated Subsidiaries, as of the dates thereof and
the consolidated results of their operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments). The unaudited pro forma combined financial statements filed with
the SEC comply in all material respects with the requirements of Article 11 of
Regulation S-X under the Securities Act.

                  (h) Undisclosed Liabilities. Except as set forth in the
financial statements of the Company included in the SEC Documents and Schedule
3(h) of the Disclosure Schedule, the Company has no liabilities, contingent or
otherwise, other than (i) liabilities incurred in the ordinary course of
business subsequent to the date of the most recent financial statements of the
Company included in the SEC Documents, and (ii) obligations under contracts and
commitments incurred in the ordinary course of business and not required under
GAAP to be

                                      -8-
<PAGE>   13

reflected in such financial statements, which, individually or in the aggregate,
are not material to the financial condition or operating results of the Company.

                  (i) Absence of Certain Changes. Since the date of the most
recent financial statements of the Company included in the SEC Documents, and
except as referenced in Schedule 3(h) above, there has not been, respecting the
Company or any Subsidiary:

                           (i) any change in the assets, liabilities, financial
condition or operating results of the Company from that reflected in the
financial statements, except changes in the ordinary course of business that
have not been, in the aggregate, materially adverse;

                           (ii) any damage, destruction or loss, whether or not
covered by insurance, materially and adversely affecting the assets, properties,
financial condition, operating results, prospects or business of the Company (as
such business is presently conducted and as it is proposed to be conducted);

                           (iii) any waiver by the Company of a valuable right
or of a material debt owed to it;

                           (iv) any satisfaction or discharge of any lien, claim
or encumbrance or payment of any obligation by the Company, except in the
ordinary course of business and that is not material to the assets, properties,
financial condition, operating results or business of the Company (as such
business is presently conducted and as it is proposed to be conducted);

                           (v) any material change or amendment to a material
contract or arrangement by which the Company or any of its assets or properties
is bound or subject;

                           (vi) any material change in any compensation
arrangement or agreement with any employee;

                           (vii) any sale, assignment or transfer of any
material patents, trademarks, copyrights, trade secrets or other intangible
assets;

                           (viii) any resignation or termination of employment
of any key officer of the Company; and the Company, to the best of its
knowledge, does not know of the impending resignation or termination of
employment of any such officer;

                           (ix) receipt of notice that there has been a loss of,
or material order cancellation by, any major customer of the Company;

                           (x) any mortgage, pledge, transfer of a security
interest in, or lien, created by the Company, with respect to any of its
material properties or assets, except liens for taxes not yet due or payable; or

                           (xi) to the best of the Company's knowledge, any
other event or condition of any character that might materially and adversely
affect the assets, properties, financial condition, operating results or
business of the Company (as such business is presently conducted and as it is
proposed to be conducted).

                  (j) Absence of Litigation. Except as disclosed in the SEC
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board or body or governmental agency pending or
threatened against the Company or any Subsidiary, in any

                                      -9-
<PAGE>   14

such case wherein an unfavorable decision, ruling or finding is reasonably
likely and would reasonably be expected to have a Material Adverse Effect.
Except as set forth on Schedule 3(j) of the Disclosure Schedule, the Company
does not have pending before the SEC, any request for confidential treatment of
information and to the best of the Company's knowledge, no such request will be
made by the Company prior to the time the Registration Statement relating to the
Shares, which is contemplated by Section 2 of the Registration Rights Agreement,
is first ordered effective by the SEC and there is not pending or contemplated,
and there has been no investigation by the SEC involving the Company, any
Subsidiary, or any current or former director or officer of the Company or any
Subsidiary. The Company and its Subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing.

                  (k) Suppliers and Customers.

                           (i) Each of the Company and each Subsidiary has
adequate sources of supply for its business as currently conducted and as
proposed to be conducted. Each has good relationships with all of its material
sources of supply of goods and services and each does not anticipate any
material problem with any such material sources of supply.

                           (ii) Neither the Company nor any Subsidiary has any
knowledge that the customer base of the Company and/or any Subsidiary might
materially decrease.

                  (l) Intellectual Property.

                           (i) Except as set forth on Schedule 3(l)(i) of the
Disclosure Schedule, the Company and each Subsidiary has ownership or license or
legal right to use all patent, copyright, trade secret, trademark, customer
lists, designs, manufacturing or other processes, computer software, systems,
data compilation, research results or other proprietary rights used in the
business of the Company and each Subsidiary and material to the Company and each
Subsidiary (collectively, "Intellectual Property") other than Intellectual
Property generally available on commercial terms from other sources. Except as
set forth on Schedule 3(l)(i), all of such patents, trademarks and registered
copyrights have been duly registered in, filed in or issued by the United States
Patent and Trademark Office, the United States Register of Copyrights or the
corresponding offices of other jurisdictions and have been maintained and
renewed in accordance with all applicable provisions of law and administrative
regulations in the United States and all such jurisdictions.

                           (ii) All material licenses or other material
agreements under which (x) the Company and each Subsidiary is granted rights in
Intellectual Property, other than Intellectual Property generally available on
commercial terms from other sources, and (y) the Company has granted rights to
others in Intellectual Property owned or licensed by the Company, are in full
force and effect and there is no material default by the Company and each
Subsidiary thereto.

                           (iii) The Company and each Subsidiary believes it has
taken all steps required in accordance with sound business practice and business
judgment to establish and preserve its ownership of all material copyright,
trade secret and other proprietary rights with respect to its products and
technology.

                           (iv) The present business, activities and products of
the Company and each Subsidiary do not infringe any intellectual property of any
other person, except where such infringement would not have a Material Adverse
Effect. Except as described in the SEC Documents, no proceeding charging the
Company or any Subsidiary with infringement of

                                      -10-
<PAGE>   15

any adversely held Intellectual Property has been filed. There exists no
unexpired patent or patent application which includes claims that would be
infringed by or otherwise have a Material Adverse Effect. Neither the Company
nor any Subsidiary is making unauthorized use of any confidential information or
trade secrets of any person. Neither the Company nor any of its employees have
any agreements or arrangements with any persons other than the Company related
to confidential information or trade secrets of such persons or restricting any
such employee's engagement in business activities of any nature. The activities
of the Company or any of its employees on behalf of the Company do not violate
any such agreements or arrangements known to the Company which any such
employees have with other persons, if any.

                           (v) No proceedings have been instituted or are
pending which challenge the rights of the Company with respect to the Company's
right to the use of the Intellectual Property. Further, no proceedings have been
instituted or are pending which challenge the rights of any Subsidiary of the
Company with respect to such Subsidiary's right to the use of the Intellectual
Property. The Company and each Subsidiary have the right to use, free and clear
of material claims or rights of other persons, all of their respective customer
lists, designs, computer software, systems, data compilations, and other
information that are required for its products or its business as presently
conducted.

                  (m) No Materially Adverse Contracts. To the knowledge of the
Company, neither the Company nor any Subsidiary is subject to any charter,
corporate or other legal restriction, or any judgment, decree, order, rule or
regulation which in the judgment of the Company's officers, has or is expected
in the future to have a Material Adverse Effect. Neither the Company nor any
Subsidiary is a party to any contract or agreement which, in the judgment of the
Company's officers, has or is expected to have a Material Adverse Effect.

                  (n) Tax Status. The Company and each Subsidiary has made or
filed all federal and state income and all other tax returns, reports and
declarations required by any jurisdiction to which it is subject (unless and
only to the extent that the Company and each Subsidiary has set aside on its
books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith
and has set aside on its books provisions reasonably adequate for the payment of
all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the
Company or any Subsidiary know of no basis for any such claim.

                  (o) Certain Transactions. Except as set forth in the SEC
Documents and except for arm's length transactions pursuant to which the Company
or any Subsidiary makes payments in the ordinary course of business upon terms
no less favorable than the Company or any Subsidiary could obtain from third
parties and other than the grant of stock options disclosed in the SEC
Documents, none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company or any Subsidiary (other
than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or any
corporation, partnership, trust or other entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director,
trustee or partner.

                                      -11-
<PAGE>   16

                  (p) Disclosure. No representation or warranty contained in
this Agreement, and no statement contained in the SEC Documents, Company
Information or in any certificate, list or other writing furnished to Investor
pursuant to any provision of this Agreement contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements herein or therein, in light of the circumstances under which they
were made, not misleading. No event or circumstance has occurred or exists with
respect to the Company or any Subsidiary or its or their business, properties,
prospects, operations or financial conditions, which, under applicable law, rule
or regulation, requires public disclosure or announcement by the Company but
which has not been so publicly announced or disclosed (assuming for this
purposes that the Company's reports filed under the Exchange Act are being
incorporated into an effective registration statement filed by the Company under
the Securities Act).

                  (q) Acknowledgment Regarding Investor's Purchase of the
Shares. The Company acknowledges and agrees that Investor is acting solely in
the capacity of arm's length purchaser with respect to this Agreement and the
transactions contemplated hereby. The Company further acknowledges that Investor
is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to this Agreement, and the transactions
contemplated hereby and any advice given by Investor or any of its
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is merely incidental to Investor's purchase of the Shares.
The Company further represents to Investor that the Company's decision to enter
into this Agreement has been based solely on the independent evaluation of the
Company and its representatives.

                  (r) No Integrated Offering. Neither the Company, nor any of
its affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales in any security or solicited any offers to
buy any security under circumstances that would require registration under the
Securities Act of the issuance of the Shares to Investor. The issuance of the
Shares to Investor will not require stockholder approval under the rules of the
AMEX nor will the Shares be integrated with any other issuance of the Company's
securities (past, current or future) which requires stockholder approval under
the rules of the AMEX.

                  (s) No Brokers. The Company has taken no action which would
give rise to any claim by any person for brokerage commissions, finder's fees or
similar payments relating to this Agreement or the transactions contemplated
hereby, except for dealings with persons whose commissions and fees will be paid
for by the Company.

                  (t) Permits; Compliance. The Company and each Subsidiary is in
possession of all franchises, grants, authorizations, licenses, permits,
easements, variances, exemptions, consents, certificates, approvals and orders
necessary to own, lease and operate its properties and to carry on its business
as it is now being conducted (collectively, the "Company Permits"), and there is
no action pending or, to the knowledge of the Company, threatened regarding
suspension or cancellation of any of the Company Permits. Neither the Company
nor any Subsidiary is in conflict with, or in default or violation of, any of
the Company Permits, except for any such conflicts, defaults or violations
which, individually or in the aggregate, would not reasonably be expected to
have a Material Adverse Effect. Since the date of the most recent financial
statements of the Company included in the SEC Documents, neither the Company nor
any Subsidiary has received any notification with respect to possible conflicts,
defaults or violations of applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or
violations would not have a Material Adverse Effect.

                                      -12-
<PAGE>   17

                  (u) Environmental Matters.

                           (i) Except as set forth in the SEC Documents or
Schedule 3(u)(i) of the Disclosure Schedule, there are, with respect to the
Company or any Subsidiary or any predecessor of the Company, no past or present
violations of Environmental Laws (as defined below), releases of any material
into the environment, actions, activities, circumstances, conditions, events,
incidents, or contractual obligations which may give rise to any common law
environmental liability or any liability under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 or similar federal, state,
local or foreign laws, and neither the Company nor any Subsidiary has received
any notice with respect to any of the foregoing, nor is any action pending or,
to the Company's knowledge, threatened in connection with any of the foregoing.
The term "Environmental Laws" means all federal, state, local or foreign laws
relating to pollution or protection of human health or the environment
(including, without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata), including, without limitation, laws relating to
emissions, discharges, releases or threatened releases of chemicals, pollutants
contaminants, or toxic or hazardous substances or wastes (collectively,
"Hazardous Materials") into the environment, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Materials, as well as all authorizations,
codes, decrees, demands or demand letters, injunctions, judgments, licenses,
notices or notice letters, orders, permits, plans or regulations issued,
entered, promulgated or approved thereunder.

                           (ii) Other than those that are or were stored, used
or disposed of in compliance with applicable law, no Hazardous Materials are
contained on or about any real property currently owned, leased or used by the
Company or any Subsidiary, including without limitation, the Wellsville Project
site, and no Hazardous Materials were released on or about any real property
previously owned, leased or used by the Company or any Subsidiary during the
period the property was owned, leased or used by the Company or any Subsidiary,
except in the normal course of the Company's or any Subsidiary's business.

                           (iii) Except as set forth in the SEC Documents or
Schedule 3(u)(i) of the Disclosure Schedule, there are no underground storage
tanks on or under any real property owned, leased or used by the Company or any
Subsidiary, including without limitation, the Wellsville Project site, that are
not in compliance with applicable law.

                  (v) Title to Property. Except as set forth in Schedule 3(h) of
the Disclosure Schedule, the Company and each Subsidiary have good and
marketable title in fee simple to all real property and good and marketable
title to all personal property owned by them which is material to the business
of the Company and its Subsidiaries, in each case free and clear of all liens,
encumbrances and defects such as would not have a Material Adverse Effect. Any
real property and facilities held under lease by the Company and its
Subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as would not have a Material Adverse Effect. Neither the
Company nor any Subsidiary has received notice of any material violation of any
applicable law, ordinance, regulation, order or requirement relating to its
owned or leased properties.

                  (w) Insurance. The Company and each Subsidiary are insured by
insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and
customary in the businesses in which the Company and its Subsidiaries are
engaged. Neither the Company nor any Subsidiary has reason to believe that it
will not be able to renew its existing insurance coverage as and when

                                      -13-
<PAGE>   18

such coverage expires or to obtain similar coverage from similar insurers as may
be necessary to continue its business at a cost that would not have a Material
Adverse Effect.

                  (x) Internal Accounting Controls. The Company and each
Subsidiary maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management's general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization, and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

                  (y) Labor Relations. No material labor problem exists or is
imminent with respect to any of the employees of the Company or any Subsidiary.
Neither the Company nor any Subsidiary has any knowledge as to any intentions of
any key employee to leave the employ of the Company or any Subsidiary.

                  (z) Foreign Corrupt Practices. Neither the Company, nor any
Subsidiary, nor any director, officer, agent, employee or other person acting on
behalf of the Company or any Subsidiary has, in the course of his or her actions
for, or on behalf of, the Company or any Subsidiary, used any corporate funds
for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the United States Foreign
Corrupt Practices Act of 1977, as amended; or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic
government official or employee.

                  (aa) Benefit Plans. Each Benefit Plan (as defined below) which
is intended to be qualified under Section 401(a) of the Internal Revenue Code of
1986, as amended (the "Code"), has either received a determination letter from
the Internal Revenue Service to the effect that such Plan (as defined below) is
so qualified or is a standardized prototype plan which relies on an opinion
letter issued to the sponsor of such prototype. No Benefit Plan (i) is a
"defined benefit plan" within the meaning of Section 414(j) of the Code, (ii) is
a multiemployer plan within the meaning of Section 3(37) of ERISA, or (iii)
provided health benefit or life insurance coverage beyond the termination of an
employee's employment, except as required by Part 6 of Subtitle B of Title I of
ERISA or Section 4980B of the Code. For purposes hereof: "Benefit Plan" means
each Plan pursuant to which the Company or any Subsidiary maintains, contributes
to, or has any liability in respect of current or former employees, agents,
directors, or independent contractors or any beneficiaries or dependents of any
such current or former employees agents, directors, or independent contractors;
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended,
and the rules and regulations promulgated thereunder; and "Plan" means any
bonus, incentive compensation, deferred compensation, pension, profit sharing,
retirement, stock purchase, stock option, stock ownership, stock appreciation
rights, phantom stock, leave of absence, layoff, vacation, day or dependent
care, legal services, cafeteria, life, health, accident, disability, workmen's
compensation or other insurance, severance, separation or other employee benefit
plan, practice, policy or arrangement of any kind, whether written or oral, or
whether for the benefit of a single individual or more than one individual
including, but not limited to, any "employee benefit plan" within the meaning of
Section 3(3) of ERISA.

                  (bb) No Manipulation of Stock. The Company has not taken and
will not, in violation of applicable law take, any action designed to or that
might reasonably be expected to

                                      -14-
<PAGE>   19

cause or result in unlawful manipulation of the price of the Common Stock to
facilitate the sale or resale of the Shares.

                  (cc) Accountants. The accountants who expressed their opinion
with respect to the SEC Documents are independent accountants as required by the
Securities Act and the rules and regulations promulgated thereunder.

                  (dd) Contracts. The contracts described in the SEC Documents
or incorporated by reference therein, which have not expired per their terms,
are in full force and effect on the date hereof, and neither the Company nor, to
the Company's knowledge, any other party to such contracts is in breach of or
default under any of such contracts which would have a Material Adverse Effect.

                  (ee) Solvency. The Company (both before and after giving
effect to the transactions contemplated by this Agreement) is solvent (i.e., its
assets have a fair market value in excess of the amount required to pay its
probable liabilities on its existing debts as they become absolute and matured)
and currently the Company has no information that would lead it to reasonably
conclude that the Company would not have, nor does it intend to take any action
that would impair, its ability to pay its debts from time to time incurred in
connection therewith as such debts mature. The Company did not receive a
qualified opinion from its auditors with respect to its most recent fiscal year
end and does not anticipate or know of any basis upon which its auditors might
issue a qualified opinion in respect of its current fiscal year.

                  (ff) Investment Company. The Company is not, and after giving
effect to the offer and sale of the Shares and the application of the proceeds
thereof will not be, an "investment company" or an "affiliated person" of, or
"promoter" or "principal underwriter" for an investment company, within the
meaning of the Investment Company Act of 1940, as amended.

                  (gg) Proprietary Information and Inventions Agreements. Each
officer, technical and engineering employee and each consultant of the Company
has executed a Confidentiality and Invention Assignment Agreement. The Company
is not aware that any of the Company's employees, officers or consultants are in
violation of the terms thereof.

         4. COVENANTS OF THE COMPANY AND INVESTOR.

                  (a) Commercially Reasonable Efforts. The parties shall use
their commercially reasonable efforts to satisfy timely, applicable conditions
to closing described in Sections 5, 6, 7 and 8 hereof.

                  (b) Form D; Blue Sky Laws. The Company agrees to file a Form D
with respect to each issuance of Shares as required under Regulation D and to
provide a copy thereof to Investor promptly after such filing. The Company
shall, on or before each Closing Date, take such action as the Company shall
reasonably determine is necessary to qualify the Shares for sale to Investor at
the Closing pursuant to this Agreement under applicable securities or "blue sky"
laws of the states of the United States (or to obtain an exemption from such
qualification).

                  (c) Reporting Status. The Common Stock is registered under
Section 12(b) of the Exchange Act. So long as Investor or any of its affiliates
beneficially owns any of the Shares, and until such Shares may be sold under
Rule 144(k), the Company shall timely file all reports required to be filed with
the SEC pursuant to the Exchange Act, and the Company shall

                                      -15-
<PAGE>   20

not terminate its status as an issuer required to file reports under the
Exchange Act, even if the Exchange Act or the rules and regulations thereunder
would permit such termination.

                  (d) Use of Proceeds. The Company will use the proceeds
realized from the sale of the Shares to fund acquisitions, future development
opportunities and for working capital purposes. None of such proceeds will be
used, directly or indirectly to make any loan to or investment in any other
person.

                  (e) Financial Information. The Company agrees to send the
following reports to Investor, to the attention of the Chief Operating Officer:
(i) within ten (10) days after the filing with the SEC, a copy of its Annual
Report on Form 10-K or Form 10-KSB, its Quarterly Reports on Form 10-Q or Form
10-QSB and any Current Reports on Form 8-K; (ii) within one (1) day after
release, copies of all press releases issued by the Company or any Subsidiary;
and (iii) contemporaneously with the making available or giving to the
stockholders of the Company, copies of any notices or other information the
Company makes available or gives to its stockholders.

                  (f) Listing of the Shares. The Company shall promptly secure
the listing of the Shares upon each national securities exchange or automated
quotation system, if any, upon which shares of Common Stock are then listed
(subject to official notice of issuance) and shall maintain, so long as any
other shares of Common Stock shall be so listed, such listing of all Shares. The
Company will obtain and maintain the listing and trading of its Common Stock on
the AMEX and will comply in all respects with the Company's reporting, filing
and other obligations under the bylaws or rules of the NASD and such exchanges,
as applicable. The Company shall promptly provide to Investor copies of any
notices it receives from the AMEX or NASD and any other exchanges or quotation
systems on which the Common Stock is then listed or quoted regarding the
continued eligibility of the Common Stock for listing or quotation on such
exchanges and quotation systems.

                  (g) Corporate Existence. So long as Investor or any of its
affiliates beneficially owns any Shares, the Company shall maintain its
corporate existence and shall not sell all or substantially all of the Company's
assets, except in the event of a merger or consolidation or sale of all or
substantially all of the Company's assets, where the surviving or successor
entity in such transaction (i) assumes the Company's obligations hereunder and
under the agreements and instruments entered into in connection herewith, and
(ii) is a publicly traded corporation whose Common Stock is listed for trading
on the Nasdaq National Market, Nasdaq SmallCap, the New York Stock Exchange or
the AMEX.

                  (h) Business. The Company shall continue in the core lines of
business contemplated in the Company's SEC Documents until two (2) years from
the Closing Date last in time.

         5. CONDITIONS TO THE COMPANY'S OBLIGATION AT CLOSING - SECOND TRANCHE
INVESTMENT. The obligation of the Company hereunder to issue and sell the Shares
to Investor and to take the other actions required to be taken by the Company
with respect to the Second Tranche Investment, is subject to the satisfaction on
or before the Second Tranche Closing Date, of each of the following conditions,
provided that these conditions are for the Company's sole benefit and may be
waived by the Company at any time in its sole discretion:

                  (a) Payment of Purchase Price. Investor shall have delivered
the Second Tranche Investment in accordance with Sections 1(a) and 1(d) hereof.

                                      -16-
<PAGE>   21

                  (b) Execution of Strategic Alliance Agreement. The Company and
Bechtel shall have executed, and Bechtel shall have delivered, a strategic
alliance agreement setting forth the principal terms whereby Bechtel will
provide engineering, procurement and construction services with respect to the
Wellsville Project and other mutually agreed upon development sites (the
"Strategic Alliance Agreement").

                  (c) Accuracy of Representations. All of Investor's
representations and warranties set forth herein (considered collectively), and
each of these representations and warranties (considered individually), must
have been accurate in all material respects as of the date of this Agreement and
must be accurate in all material respects as of the Second Tranche Closing Date,
as if made on such date.

                  (d) Investor's Performance.

                           (i) All of the covenants and obligations that
Investor is required to perform or to comply with pursuant to this Agreement at
or prior to the Second Tranche Closing Date (considered collectively), and each
of these covenants and obligations (considered individually), must have been
performed and complied with in all material respects.

                           (ii) Investor must have delivered each of the
documents required to be delivered by Investor pursuant this Agreement.

                  (e) No Litigation. No litigation, statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

         6. CONDITIONS TO INVESTOR'S OBLIGATION AT CLOSING - SECOND TRANCHE
INVESTMENT. The obligation of Investor hereunder to purchase the Shares and to
take the other actions required to be taken by Investor with respect to the
Second Tranche Investment, is subject to the satisfaction on or before the
Second Tranche Closing Date, of each of the following conditions, provided that
these conditions are for Investor's sole benefit and may be waived by Investor
at any time in its sole discretion:

                  (a) Delivery of Strategic Alliance Agreement. The Company and
Bechtel shall have executed, and the Company shall have delivered, the Strategic
Alliance Agreement.

                  (b) Delivery of Common Stock Certificates. The Company shall
have delivered to Investor duly executed certificate(s) (in such denominations
as Investor shall reasonably request) representing the Shares to be issued in
accordance with Section 1 hereof.

                  (c) Delivery of Compliance Certificate. The Company shall have
delivered to Investor as of the Second Tranche Closing Date, a certificate
signed on its behalf by its Chief Executive Officer, Chief Financial Officer or
other authorized person, stating that there has been no material adverse change
in the business, affairs, prospects, operations, properties, assets or condition
of the Company not previously disclosed to the Investor in writing.

                  (d) Accuracy of Representations. All of the Company's
representations and warranties set forth herein (considered collectively), and
each of these representations and warranties (considered individually), must
have been accurate in all material respects as of the

                                      -17-
<PAGE>   22

date of this Agreement, and must be accurate in all material respects as of the
Second Tranche Closing Date, as if made on such date.

                  (e) The Company's Performance.

                           (i) All of the covenants and obligations that the
Company is required to perform or to comply with pursuant to this Agreement on
or prior to the Second Tranche Closing Date (considered collectively), and each
of these covenants and obligations (considered individually), must have been
duly performed and complied with in all material respects.

                           (ii) Each document required to be delivered by the
Company pursuant to this Agreement must have been delivered, and each of the
other covenants and obligations contained herein and therein must have been
performed and complied with by the Company in all material respects.

                  (f) No Proceedings. Since the date of this Agreement, there
must not have been commenced or threatened against Investor, or against any
person affiliated with Investor, any proceeding (i) involving any challenge to,
or seeking damages or other relief in connection with, any of the contemplated
transactions, or (ii) that may have the effect of preventing, delaying, making
illegal, or otherwise interfering with any of the contemplated transactions.

                  (g) No Claim Regarding Stock Ownership or Sale Proceeds. There
must not have been made or threatened by any person any claim asserting that
such person (i) is the holder or the beneficial owner of, or has the right to
acquire or to obtain beneficial ownership of, any stock of, or any other voting,
equity, or ownership interest in, the Company or any Subsidiary other than as
set forth in Schedule 3(c)(iii), or (ii) is entitled to all or any portion of
the Purchase Price payable for the Shares .

                  (h) No Prohibition. Neither the consummation nor the
performance of any of the contemplated transactions will, directly or indirectly
(with or without notice or lapse of time), materially contravene, or conflict
with, or result in a material violation of, or cause Investor or any person
affiliated with Investor to suffer any material adverse consequence under, (i)
any applicable legal requirement or order, or (ii) any legal requirement or
order that has been published, introduced, or otherwise proposed by or before
any governmental body.

                  (i) No Litigation. No litigation, statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

                  (j) Common Stock Trading. Trading in the Common Stock on the
AMEX shall not have been suspended by the SEC or the AMEX.

                  (k) Opinion of Counsel. Investor shall have received an
opinion of the Company's counsel, dated as of the Second Tranche Closing Date,
in form and substance reasonably satisfactory to Investor.

                  (l) Blue Sky Law Filings. The Company shall have delivered
evidence of the qualification of the Shares under applicable state securities or
"blue sky" laws of the United States.

                                      -18-
<PAGE>   23

                  (m) Certificate of the Company's Transfer Agent. The Company
shall have delivered a certificate of the transfer agent of the Company which
sets forth the number of outstanding securities of the Company as of a date not
more than two business days prior to the Second Tranche Closing Date.

                  (n) Other Documents. Investor shall have received such other
documents and certificates, in form and substance reasonably satisfactory to
Investor and its counsel, relating to matters incident to the transactions
contemplated hereby as Investor may reasonably request.

         7. CONDITIONS TO COMPANY'S OBLIGATION AT CLOSING - THIRD TRANCHE
INVESTMENT. The obligation of the Company hereunder to issue and sell the Shares
to Investor and to take the other actions required to be taken by the Company
with respect to the Third Tranche Investment, is subject to the satisfaction on
or before the Third Tranche Closing Date, of each of the following conditions,
provided that these conditions are for the Company's sole benefit and may be
waived by the Company at any time in its sole discretion:

                  (a) Payment of Purchase Price. Investor shall have delivered
the Third Tranche Investment in accordance with Sections 1(a) and 1(d) hereof.

                  (b) Execution of EPC Agreement. The Company and Bechtel shall
have executed, and Bechtel shall have delivered, a definitive agreement setting
forth the terms by which Bechtel will perform engineering, procurement and
construction services with respect to the Wellsville Project site or an
alternate site that may be selected for the initial project (the "EPC
Agreement").

                  (c) Accuracy of Representations. All of Investor's
representations and warranties set forth herein (considered collectively), and
each of these representations and warranties (considered individually), must
have been accurate in all material respects as of the date of this Agreement and
must be accurate in all material respects as of the Third Tranche Closing Date,
as if made on such date.

                  (d) Investor's Performance.

                           (i) All of the covenants and obligations that
Investor is required to perform or to comply with pursuant to this Agreement at
or prior to the Third Tranche Closing Date (considered collectively), and each
of these covenants and obligations (considered individually), must have been
performed and complied with in all material respects.

                           (ii) Investor must have delivered each of the
documents required to be delivered by Investor pursuant this Agreement.

                  (e) No Litigation. No litigation, statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

         8. CONDITIONS TO INVESTOR'S OBLIGATION AT CLOSING - THIRD TRANCHE
INVESTMENT. The obligation of Investor hereunder to purchase the Shares and to
take the other actions required to be taken by Investor with respect to the
Third Tranche

                                      -19-
<PAGE>   24

Investment, is subject to the satisfaction on or before the Third Tranche
Closing Date, of each of the following conditions, provided that these
conditions are for Investor's sole benefit and may be waived by Investor at any
time in its sole discretion:

                  (a) Execution of EPC Agreement. The Company and Bechtel shall
have executed, and the Company shall have delivered, the EPC Agreement.

                  (b) Delivery of Common Stock Certificates. The Company shall
have delivered to Investor duly executed certificate(s) (in such denominations
as Investor shall reasonably request) representing the Shares to be issued in
accordance with Section 1 hereof.

                  (c) Delivery of Compliance Certificate. The Company shall have
delivered to Investor as of the Third Tranche Closing Date, a certificate signed
on its behalf by its Chief Executive Officer, Chief Financial Officer or other
authorized person, stating that there has been no material adverse change in the
business, affairs, prospects, operations, properties, assets or condition of the
Company not previously disclosed to the Investor in writing.

                  (d) Satisfaction with Terms and Conditions of Wellsville
Project Debt. A copy of all loan documentation relating to a commercial loan
transaction to be consummated for purposes of financing the development and
construction of the Wellsville Project site or an alternate site that may be
selected for the initial project, shall have been delivered to Investor. The
terms and conditions of such loan shall be deemed to be acceptable to Investor.

                  (e) Accuracy of Representations. All of the Company's
representations and warranties set forth herein (considered collectively), and
each of these representations and warranties (considered individually), must
have been accurate in all material respects as of the date of this Agreement,
and must be accurate in all material respects as of the Third Tranche Closing
Date, as if made on such date.

                  (f) The Company's Performance.

                           (i) All of the covenants and obligations that the
Company is required to perform or to comply with pursuant to this Agreement on
or before the Third Tranche Closing Date (considered collectively), and each of
these covenants and obligations (considered individually), must have been duly
performed and complied with in all material respects.

                           (ii) Each document required to be delivered by the
Company pursuant to this Agreement must have been delivered, and each of the
other covenants and obligations contained herein and therein must have been
performed and complied with by the Company in all material respects.

                  (g) No Proceedings. Since the date of this Agreement, there
must not have been commenced or threatened against Investor, or against any
person affiliated with Investor, any proceeding (i) involving any challenge to,
or seeking damages or other relief in connection with, any of the contemplated
transactions, or (ii) that may have the effect of preventing, delaying, making
illegal, or otherwise interfering with any of the contemplated transactions.

                  (h) No Claim Regarding Stock Ownership or Sale Proceeds. There
must not have been made or threatened by any person any claim asserting that
such person (i) is the holder or the beneficial owner of, or has the right to
acquire or to obtain beneficial ownership of, any stock of, or any other voting,
equity, or ownership interest in, the Company or any Subsidiary

                                      -20-
<PAGE>   25

other than as set forth in Schedule 3(c)(iii), or (ii) is entitled to all or any
portion of the Purchase Price payable for the Shares.

                  (i) No Prohibition. Neither the consummation nor the
performance of any of the contemplated transactions will, directly or indirectly
(with or without notice or lapse of time), materially contravene, or conflict
with, or result in a material violation of, or cause Investor or any person
affiliated with Investor to suffer any material adverse consequence under, (i)
any applicable legal requirement or order, or (ii) any legal requirement or
order that has been published, introduced, or otherwise proposed by or before
any governmental body.

                  (j) No Litigation. No litigation, statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

                  (k) Common Stock Trading. Trading in the Common Stock on the
AMEX shall not have been suspended by the SEC or the AMEX.

                  (l) Opinion of Counsel. Investor shall have received an
opinion of the Company's counsel, dated as of the Third Tranche Closing Date, in
form and substance reasonably satisfactory to Investor.

                  (m) Blue Sky Law Filings. The Company shall have delivered
evidence of the qualification of the Shares under applicable state securities or
"blue sky" laws of the United States.

                  (n) Certificate of the Company's Transfer Agent. The Company
shall have delivered a certificate of the transfer agent of the Company which
sets forth the number of outstanding securities of the Company as of a date not
more than two business days prior to the Third Tranche Closing Date.

                  (o) Other Documents. Investor shall have received such other
documents and certificates, in form and substance reasonably satisfactory to
Investor and its counsel, relating to matters incident to the transactions
contemplated hereby as Investor may reasonably request.

         9. FIRST TRANCHE ADJUSTMENT OBLIGATION OF THE COMPANY. The parties
hereby agree and acknowledge that the Price Per Share of the First Tranche
Investment was retroactively subject to the following adjustment: because the
Company issued shares of Common Stock pursuant to a private placement between
the First Tranche Closing Date and the Second Tranche Closing Date and the
issuance price per share of such Common Stock was less than the First Tranche
Price Per Share, the number of Shares issued to Investor pursuant to that
certain Stock Purchase Agreement, dated as of October 12, 2000, by and between
the parties, was adjusted and an additional 214,286 Shares shall be issued to
Investor so that the aggregate number of Shares issued to Investor with respect
to the First Tranche Investment shall be equal to the amount of the First
Tranche Investment divided by the conversion price per share of Common Stock for
which the securities purchased by the other investors in the private placement
may be converted into Common Stock (rounded up or down, as applicable, to the
nearest whole Share) during such period. The Company is in the process of
causing such additional Shares to be issued to Investor.

                                      -21-
<PAGE>   26

         10. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS;
INDEMNIFICATION.

                  (a) Survival of Representations, Warranties and Covenants. The
representations, warranties, covenants and agreements of the Company and
Investor contained in this Agreement or in any document or certificate delivered
pursuant hereto or thereto or in connection herewith shall survive the Closing
Date last in time, and shall continue in effect until the Company's Form 10-K
(or Form 10-KSB, if applicable) for the next full fiscal year following the
fiscal year in which such Closing Date occurs, is filed with the SEC. All
statements contained in any certificate or other document delivered by or on
behalf of the Company pursuant hereto shall constitute representations and
warranties by the Company hereunder.

                  (b) Indemnification. The Company agrees to indemnify and hold
Investor harmless from and against, and will pay to Investor (including their
affiliates and their respective officers, directors, agents, attorneys,
employees and representatives) the full amount of any loss, damage, liability,
penalties or expense (including amounts paid in settlement and reasonable
attorneys' fees and expenses) to Investor resulting either directly or
indirectly from any breach of the representations, warranties, covenants or
agreements of the Company contained in this Agreement, in the Registration
Rights Agreement, in the Additional Right to Purchase Agreement, or any other
document or certificate delivered pursuant hereto or thereto or in connection
herewith or therewith.

                  (c) Claims for Indemnification; Defense of Indemnified Claims.

                           (i) For purposes of this Section 10, the party
entitled to indemnification shall be known as the "Indemnified Party" and the
party required to indemnify shall be known as the "Indemnifying Party." In the
event that the Indemnifying Party shall be obligated to the Indemnified Party
pursuant to this Section 10 or in the event that a suit, action, investigation,
claim or proceeding is begun, made or instituted as a result of which the
Indemnifying Party may become obligated to the Indemnified Party hereunder, the
Indemnified Party shall give prompt written notice to the Indemnifying Party of
the occurrence of such event, specifying the basis for such claim or demand, and
the amount or estimated amount thereof to the extent then determinable (which
estimate shall not be conclusive of the final amount of such claim or demand);
provided, however, that the failure to give such notice shall not constitute a
waiver of the right to indemnification hereunder unless the Indemnifying Party
is actually prejudiced in a material respect thereby. The Indemnifying Party
agrees to defend, contest or otherwise protect against any such suit, action,
investigation, claim or proceeding at the Indemnifying Party's own cost and
expense with counsel of its own choice, who shall be, however, reasonably
acceptable to the Indemnified Party. The Indemnifying Party may not make any
compromise or settlement without the prior written consent of the Indemnified
Party (which will not be unreasonably withheld or delayed) and the Indemnified
Party shall receive a full and unconditional release reasonably satisfactory to
it pursuant to such compromise or settlement. The Indemnified Party shall have
the right but not the obligation to participate at its own expense in the
defense thereof by counsel of its own choice. If requested by the Indemnifying
Party, the Indemnified Party shall (at the Indemnifying Party's expense) (i)
cooperate with the Indemnifying Party and its counsel in contesting any claim or
demand which the Indemnifying Party defends, (ii) provide the Indemnifying Party
with reasonable access during normal business hours to its books and records to
the extent they relate to the condition or operation of the business and are
requested by the Indemnifying Party to perform its indemnification obligations
hereunder, and to make copies of such books and records, and (iii) make
personnel available to assist in locating any books and records relating to the
business or whose assistance, participation or testimony is

                                      -22-
<PAGE>   27

reasonably required in anticipation of, preparation for or the prosecution and
defense of, any claim subject to this Section 10. In the event that the
Indemnifying Party fails timely to defend, contest or otherwise protect the
Indemnified Party against any such suit, action, investigation, claim or
proceeding, the Indemnified Party shall have the right to defend, contest or
otherwise protect itself against the same and may make any reasonable compromise
or settlement thereof and recover the entire cost thereof from the Indemnifying
Party including without limitation, reasonable attorneys' fees, disbursements
and all amounts paid as a result of such suit, action, investigation, claim or
proceeding, or compromise or settlement thereof.

         11. GENERAL PROVISIONS.

                  (a) Governing Law.

           This Agreement shall be governed by and interpreted in accordance
with the laws of the State of Texas without regard to the principles of conflict
of laws. The parties hereto hereby submit to the exclusive jurisdiction of the
United States federal courts located in Dallas, Texas with respect to any
dispute arising under this Agreement, the agreements entered into in connection
herewith or the transactions contemplated hereby or thereby.

                  (b) Counterparts; Signatures by Facsimile. This Agreement may
be executed in two or more counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party. This Agreement, once
executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.

                  (c) Headings. The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

                  (d) Severability. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

                  (e) Specific Performance. The parties agree that irreparable
damage will result in the event that this Agreement is not specifically
enforced, and the parties agree that any damages available at law for a breach
of this Agreement would not be an adequate remedy. Therefore, the provisions
hereof and the obligations of the parties hereunder shall be enforceable in a
court of equity, or other tribunal with jurisdiction, by a decree of specific
performance, and appropriate injunctive relief may be applied for and granted in
connection therewith. Such remedies and all other remedies provided for in this
Agreement shall, however, be cumulative and not exclusive and shall be in
addition to any other remedies which a party may have under this Agreement or
otherwise.

                  (f) Entire Agreement; Amendments. This Agreement and the
agreements, instruments, exhibits and schedules referenced herein, contain the
entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the
Company nor Investor makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be waived or
amended other than by an instrument in writing signed by the party to be charged
with enforcement.

                                      -23-
<PAGE>   28

                  (g) Notices. Any notices required or permitted to be given
under the terms of this Agreement shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile and shall be effective
five (5) days after being placed in the mail, if mailed by regular United States
mail, or upon receipt, if delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile, in each case addressed
to a party. The addresses for such communications shall be:

                  If to the Company:

                           Probex Corp.
                           One Galleria Tower
                           13355 Noel Road, Suite 1200
                           Dallas, Texas 75240
                           Attention: Chief Executive Officer
                           Facsimile: (972) 980-8545

                  With a copy to:

                           Jenkens & Gilchrist, A Professional Corporation
                           1445 Ross Ave., Suite 3200
                           Dallas, Texas 75202
                           Attention: Robert Dockery, Esq.
                           Facsimile: (214) 855-4300

                  If to Investor:

                           United Infrastructure Company, LLC
                           50 California Street, Suite 2200
                           San Francisco, California 94111
                           Attention: Chief Operating Officer
                           Facsimile: (415) 768-1714

                  With a copy to:

                           Bechtel Enterprises Holdings, Inc.
                           50 California Street, Suite 2200
                           San Francisco, California 94111
                           Attention: Chief Counsel
                           Facsimile: (415) 768-2233

         Each party shall provide notice to the other party of any change in
address or facsimile number.

                  (h) Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor Investor shall assign this Agreement or any rights or
obligations hereunder without the prior written consent of the other party.
Notwithstanding the foregoing, subject to Section 2(f), Investor may assign its
rights hereunder to any person that purchases Shares in a private transaction
from Investor or to any of its "affiliates," as that term is defined under the
Exchange Act, without the consent of the Company.

                                      -24-
<PAGE>   29

                  (i) Third Party Beneficiaries. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

                  (j) Publicity. The Investor shall have the right to review a
reasonable period of time before issuance of any press releases, SEC, AMEX, or
NASD filings, or any other public statements with respect to the transactions
contemplated hereby; provided, however, that the Company shall be entitled,
without the prior approval of Investor, to make any press release or SEC, AMEX,
or NASD filings with respect to such transactions as is required by applicable
law and regulations (although Investor shall be consulted by the Company in
connection with any such press release prior to its release and shall be
provided with a copy thereof and be given an opportunity to comment thereon).

                  (k) Further Assurances. Each party shall do and perform, or
cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  (l) Limited Recourse. Notwithstanding anything in this
Agreement, the Registration Rights Agreement or any other document, agreement or
instrument contemplated hereby or thereby to the contrary, the obligations of
Investor hereunder and under the Registration Rights Agreement shall be without
recourse to any partner, affiliate of Investor or their respective partners, or
any other respective officers, directors, employees or agents and shall be
limited to the assets of Investor.

                  (m) Waiver. Any term or condition of this Agreement may be
waived at any time by the party that is entitled to the benefit thereof, but no
such waiver shall be effective unless set forth in a written instrument duly
executed by or on behalf of the party waiving such term or condition. No waiver
by any party of any term or condition of this Agreement, in any one or more
instances, shall be deemed to be or construed as a waiver of the same or any
other term or condition of this Agreement on any future occasion. All remedies,
either under this Agreement or by law or otherwise afforded, will be cumulative
and not alternative.

                  (n) No Strict Construction. The language used in this
Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      -25-
<PAGE>   30

         IN WITNESS WHEREOF, the Company and Investor have caused this Agreement
to be duly executed as of the date first above written.

                                         PROBEX CORP.,
                                         a Delaware corporation

                                         By:   /s/ JOHN N. BROBJORG
                                              -------------------------------
                                              John N. Brobjorg
                                              Corporate Controller

                                         UNITED INFRASTRUCTURE COMPANY, LLC,
                                         a Delaware limited liability company

                                         By:   /s/ NORA A. BLUM
                                              -------------------------------
                                              Nora A. Blum
                                              Authorized Person

                 [Schedules and Exhibits Intentionally Omitted]

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