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                                                                     EXHIBIT 4.7

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                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                                 BY AND BETWEEN

                                 BAYLAKE CORP.

                                      AND

                            WILMINGTON TRUST COMPANY

                        Dated as of _____________  ____, 2000

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                                TABLE OF CONTENTS

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<S>      <C>                                                                                 <C>
ARTICLE I. DEFINITIONS AND INTERPRETATION.......................................................1
           Section 1.1. Definitions and Interpretation..........................................1

ARTICLE II. TRUST INDENTURE ACT.................................................................5
           Section 2.1. Trust Indenture Act; Application........................................5
           Section 2.2. The List of Holders of the Securities...................................5
           Section 2.3. Reports by the Preferred Guarantee Trustee..............................5
           Section 2.4. Periodic Reports to the Preferred Guarantee Trustee.....................5
           Section 2.5. Evidence of Compliance with Conditions Precedent........................6
           Section 2.6. Events of Default; Waiver...............................................6
           Section 2.7. Event of Default; Notice................................................6
           Section 2.8. Conflicting Interests...................................................6

ARTICLE III. POWERS, DUTIES AND RIGHTS OF THE PREFERRED GUARANTEE TRUSTEE.......................7
           Section 3.1. Powers and Duties of the Preferred Guarantee Trustee....................7
           Section 3.2. Certain Rights of the Preferred Guarantee Trustee.......................8
           Section 3.3. Not Responsible for Recitals or Issuance of Guarantee..................10

ARTICLE IV. THE PREFERRED GUARANTEE TRUSTEE....................................................10
           Section 4.1. The Preferred Guarantee Trustee; Eligibility...........................10
           Section 4.2. Appointment, Removal and Resignation of the Preferred
                        Guarantee Trustee......................................................11

ARTICLE V. GUARANTEE...........................................................................12
           Section 5.1. Guarantee..............................................................12
           Section 5.2. Waiver of Notice and Demand............................................12
           Section 5.3. Obligations not Affected...............................................12
           Section 5.4. Rights of the Holders..................................................13
           Section 5.5. Guarantee of Payment...................................................13
           Section 5.6. Subrogation............................................................13
           Section 5.7. Independent Obligations................................................14

ARTICLE VI. LIMITATION OF TRANSACTIONS; SUBORDINATION..........................................14
           Section 6.1. Limitation on Transactions.............................................14
           Section 6.2  Ranking................................................................14

ARTICLE VII. TERMINATION.......................................................................14
           Section 7.1. Termination............................................................14

ARTICLE VIII. INDEMNIFICATION..................................................................15
           Section 8.1. Exculpation............................................................15
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<S>      <C>                                                                               <C>
           Section 8.2. Indemnification.......................................................15

ARTICLE IX. MISCELLANEOUS.....................................................................15
           Section 9.1. Successors and Assigns................................................15
           Section 9.2. Amendments............................................................15
           Section 9.3. Notices...............................................................15
           Section 9.4. Benefit...............................................................16
           Section 9.5. Governing Law.........................................................16
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                              CROSS-REFERENCE TABLE

Section of                                                          Section of
Trust Indenture Act                                                 Guarantee
of 1939, as amended                                                 Agreement
-------------------                                                 ----------

310(a)....................................................................4.1(a)
310(b)...............................................................4.1(c), 2.8
310(c)............................................................Not Applicable
311(a)....................................................................2.2(b)
311(b)....................................................................2.2(b)
311(c)............................................................Not Applicable
312(a)................................................................... 2.2(a)
312(b)................................................................... 2.2(b)
313......................................................................... 2.3
314(a).......................................................................2.4
314(b)............................................................Not Applicable
314(c).......................................................................2.5
314(d)............................................................Not Applicable
314(e).............................................................1.1, 2.5, 3.2
314(f)..................................................................2.1, 3.2
315(a)....................................................................3.1(d)
315(b).......................................................................2.7
315(c).......................................................................3.1
315(d)....................................................................3.1(d)
316(a).............................................................1.1, 2.6, 5.4
316(b).......................................................................5.3
317(a).......................................................................3.1
317(b)............................................................Not Applicable
318(a)....................................................................2.1(a)
318(b).......................................................................2.1
318(c)....................................................................2.1(b)

Note: This Cross-Reference Table does not constitute part of this Agreement and
shall not affect the interpretation of any of its terms or provisions.

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                    PREFERRED SECURITIES GUARANTEE AGREEMENT

         THIS PREFERRED SECURITIES GUARANTEE AGREEMENT (this "Preferred
Securities Guarantee"), dated as of _________ __, 2000, is executed and
delivered by BAYLAKE CORP., a Wisconsin corporation (the "Guarantor"), and
WILMINGTON TRUST COMPANY, a trust company organized and existing under the laws
of Delaware, as trustee (the "Preferred Guarantee Trustee"), for the benefit of
the Holders (as defined herein) from time to time of the Preferred Securities
(as defined herein) of BAYLAKE CAPITAL TRUST I, a Delaware statutory business
trust (the "Trust").

                                    RECITALS

         WHEREAS, pursuant to an Amended and Restated Trust Agreement (the
"Trust Agreement"), dated as of ___________  __, 2000, among the trustees of the
Trust named therein, the Guarantor, as depositor, and the holders from time to
time of undivided beneficial interests in the assets of the Trust, the Trust is
issuing on the date hereof up to 1,725,000 preferred securities, having an
aggregate liquidation amount of $17,250,000, designated the __% Cumulative Trust
Preferred Securities (the "Preferred Securities");

         WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Preferred Securities Guarantee, to pay to the
Holders of the Preferred Securities the Guarantee Payments (as defined herein)
and to make certain other payments on the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Preferred Securities
Guarantee for the benefit of the Holders.

                                   ARTICLE I.
                         DEFINITIONS AND INTERPRETATION

         SECTION 1.1. DEFINITIONS AND INTERPRETATION. In this Preferred
Securities Guarantee, unless the context otherwise requires:

         (a) capitalized terms used in this Preferred Securities Guarantee but
not defined in the preamble above have the respective meanings assigned to them
in this Section 1.1;

         (b) terms defined in the Trust Agreement as at the date of execution of
this Preferred Securities Guarantee have the same meaning when used in this
Preferred Securities Guarantee, unless otherwise defined in this Preferred
Securities Guarantee;

         (c) a term defined anywhere in this Preferred Securities Guarantee has
the same meaning throughout;

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         (d) all references to "the Preferred Securities Guarantee" or "this
Preferred Securities Guarantee" are to this Preferred Securities Guarantee as
modified, supplemented or amended from time to time;

         (e) all references in this Preferred Securities Guarantee to Articles
and Sections are to Articles and Sections of this Preferred Securities
Guarantee, unless otherwise specified;

         (f) a term defined in the Trust Indenture Act has the same meaning when
used in this Preferred Securities Guarantee, unless otherwise defined in this
Preferred Securities Guarantee or unless the context otherwise requires; and

         (g) a reference to the singular includes the plural and vice versa.

         "Affiliate" has the same meaning as given to that term in Rule 405 of
the Securities Act of 1933, as amended, or any successor rule thereunder.

         "Business Day" means any day other than a Saturday, Sunday, a day on
which federal or state banking institutions in the Borough of Manhattan, The
City of New York are authorized or required by law, executive order or
regulation to close or a day on which the Corporate Trust Office of the
Preferred Guarantee Trustee is closed for business.

         "Corporate Trust Office" means the office of the Preferred Guarantee
Trustee at which the corporate trust business of the Preferred Guarantee Trustee
shall, at any particular time, be principally administered, which office at the
date of execution of this Preferred Securities Guarantee is located at Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration.

         "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

         "Debentures" means the __ % Subordinated Debentures due December 31,
2030, of the Debenture Issuer held by the Property Trustee of the Trust.

         "Debenture Issuer" means Baylake Corp., issuer of the Debentures under
the Indenture.

         "Event of Default" means a default by the Guarantor on any of its
payment or other obligations under this Preferred Securities Guarantee.

         "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent not
paid or made by the Trust: (i) any accrued and unpaid Distributions that are
required to be paid on such Preferred Securities, to the extent the Trust shall
have funds available therefor, (ii) the redemption price, including all accrued
and unpaid Distributions to the date of redemption (the "Redemption Price"), to
the extent the Trust has funds available therefor, with respect to any Preferred
Securities called for redemption by the Trust, and (iii) upon a voluntary or
involuntary dissolution, winding-up or termination of the Trust (other than in
connection with the distribution of the Debentures to the Holders in exchange
for the Preferred Securities as provided in the Trust Agreement), the lesser of
(A) the aggregate of the Liquidation Amount and all accrued and unpaid
Distributions on the

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Preferred Securities to the date of payment, to the extent the Trust shall have
funds available therefor (the "Liquidation Distribution"), and (B) the amount of
assets of the Trust remaining available for distribution to Holders in
liquidation of the Trust.

         "Guarantor" means Baylake Corp., a Wisconsin corporation.

         "Holder" means a Person in whose name a Preferred Security is or
Preferred Securities are registered in the Securities Register; provided,
however, that, in determining whether the holders of the requisite percentage of
the Preferred Securities have given any request, notice, consent or waiver
hereunder, "Holder" shall not include the Guarantor, the Preferred Guarantee
Trustee or any of their respective Affiliates.

         "Indemnified Person" means the Preferred Guarantee Trustee, any
Affiliate of the Preferred Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Preferred Guarantee Trustee.

         "Indenture" means the Indenture, dated as of ____________ __, 2000,
among the Debenture Issuer and Wilmington Trust Company, as trustee, and any
indenture supplemental thereto pursuant to which the Debentures are to be issued
to the Property Trustee of the Trust.

         "Liquidation Amount" means the stated value of $10 per Preferred
Security.

         "Liquidation Distribution" has the meaning provided therefor in the
definition of Guarantee Payments.

         "List of Holders" has the meaning set forth in Section 2.2 of this
Preferred Securities Guarantee.

         "Majority in Liquidation Amount of the Preferred Securities" means the
holders of more than 50% of the Liquidation Amount (including the stated value
that would be paid on redemption, liquidation or otherwise, plus accrued and
unpaid Distributions to the date upon which the voting percentages are
determined) of all of the Preferred Securities.

         "Officers' Certificate" means, with respect to any Person, a
certificate signed by two authorized officers of such Person, at least one of
whom shall be the principal executive officer, principal financial officer,
principal accounting officer, treasurer or any vice president of such Person.
Any Officers' Certificate delivered with respect to compliance with a condition
or covenant provided for in this Preferred Securities Guarantee shall include:

         (a) a statement that each officer signing the Officers' Certificate has
read the covenant or condition and the definition relating thereto;

         (b) a brief statement of the nature and scope of the examination or
investigation undertaken by each officer in rendering the Officers' Certificate;

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         (c) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

         (d) a statement as to whether, in the opinion of each such officer,
such condition or covenant has been complied with.

         "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

         "Preferred Guarantee Trustee" means Wilmington Trust Company, until a
Successor Preferred Guarantee Trustee has been appointed and has accepted such
appointment pursuant to the terms of this Preferred Securities Guarantee and
thereafter means each such Successor Preferred Guarantee Trustee.

         "Preferred Securities" means the _____% Cumulative Trust Preferred
Securities representing undivided beneficial interests in the assets of the
Trust which rank pari passu with Common Securities issued by the Trust;
provided, however, that upon the occurrence of an Event of Default, the rights
of holders of Common Securities to payment in respect of distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of Preferred Securities.

         "Redemption Price" has the meaning provided therefor in the definition
of Guarantee Payments.

         "Responsible Officer" means, with respect to the Preferred Guarantee
Trustee, any officer within the Corporate Trust Office of the Preferred
Guarantee Trustee with direct responsibility for the administration of this
Preferred Securities Guarantee, including any vice-president, any assistant
vice-president, any assistant secretary, the treasurer, any assistant treasurer
or other officer of the Corporate Trust Office of the Preferred Guarantee
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of that officer's knowledge of and familiarity with the particular
subject.

         "Securities Register" and "Securities Registrar" have the meanings
assigned to such terms as in the Trust Agreement (as defined in the Indenture).

         "Successor Preferred Guarantee Trustee" means a successor Preferred
Guarantee Trustee possessing the qualifications to act as Preferred Guarantee
Trustee under Section 4.1.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended, as in force at the date of which this instrument was executed;
provided, however, that in the event the Trust Indenture Act of 1939, as
amended, is amended after such date, "Trust Indenture Act" means, to the extent
required by any such amendment, the Trust Indenture Act of 1939, as so amended.

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                                   ARTICLE II.
                               TRUST INDENTURE ACT

         SECTION 2.1. TRUST INDENTURE ACT; APPLICATION.

         (a) This Preferred Securities Guarantee is subject to the provisions of
the Trust Indenture Act that are required to be part of this Preferred
Securities Guarantee and shall, to the extent applicable, be governed by such
provisions.

         (b) If and to the extent that any provision of this Preferred
Securities Guarantee limits, qualifies or conflicts with the duties imposed by
Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
shall control.

         SECTION 2.2. THE LIST OF HOLDERS OF THE SECURITIES.

         (a) In the event the Preferred Guarantee Trustee is not also the
Securities Registrar, the Guarantor shall provide the Preferred Guarantee
Trustee with a list, in such form as the Preferred Guarantee Trustee may
reasonably require, of the names and addresses of the Holders of the Preferred
Securities (the "List of Holders") (i) within three Business Days after March
15, June 15, September 15 and December 15 in each year, and (ii) at any other
time within 30 days of receipt by the Guarantor of a written request for a List
of Holders as of a date no more than 15 days before such List of Holders is
given to the Preferred Guarantee Trustee; provided, that the Guarantor shall not
be obligated to provide such List of Holders at any time the List of Holders
does not differ from the most recent List of Holders given to the Preferred
Guarantee Trustee by the Guarantor. The Preferred Guarantee Trustee may destroy
any List of Holders previously given to it on receipt of a new List of Holders.

         (b) The Preferred Guarantee Trustee shall comply with its obligations
under Sections 311(a), 311(b) and Section 312(b) of the Trust Indenture Act.

         SECTION 2.3. REPORTS BY THE PREFERRED GUARANTEE TRUSTEE. On or before
October 15 of each year, commencing October 15, 2001, the Preferred Guarantee
Trustee shall provide to the Holders of the Preferred Securities such reports as
are required by Section 313 of the Trust Indenture Act, if any, in the form and
in the manner provided by Section 313 of the Trust Indenture Act. The Preferred
Guarantee Trustee shall also comply with the requirements of Section 313(d) of
the Trust Indenture Act.

         SECTION 2.4. PERIODIC REPORTS TO THE PREFERRED GUARANTEE TRUSTEE. The
Guarantor shall provide to the Preferred Guarantee Trustee such documents,
reports and information as required by Section 314 (if any) and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.

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         SECTION 2.5. EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT. The
Guarantor shall provide to the Preferred Guarantee Trustee such evidence of
compliance with any conditions precedent, if any, provided for in this Preferred
Securities Guarantee that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an
Officers' Certificate.

         SECTION 2.6. EVENTS OF DEFAULT; WAIVER. The Holders of a Majority in
Liquidation Amount of the Preferred Securities may, by vote, on behalf of the
Holders of all of the Preferred Securities, waive any past Event of Default and
its consequences. Upon such waiver, any such Event of Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Preferred Securities Guarantee, but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

         SECTION 2.7. EVENT OF DEFAULT; NOTICE.

         (a) The Preferred Guarantee Trustee shall, within 90 days after the
occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the Holders of the Preferred Securities, notices of all Events of
Default actually known to a Responsible Officer of the Preferred Guarantee
Trustee, unless such defaults have been cured before the giving of such notice;
provided, that, except in the case of a default by Guarantor under the terms of
this Preferred Securities Guarantee on any of its payment obligations, the
Preferred Guarantee Trustee shall be protected in withholding such notice if and
so long as a Responsible Officer of the Preferred Guarantee Trustee in good
faith determines that the withholding of such notice is in the interests of the
Holders of the Preferred Securities.

         (b) The Preferred Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless the Preferred Guarantee Trustee shall
have received written notice, or of which a Responsible Officer of the Preferred
Guarantee Trustee charged with the administration of the Trust Agreement shall
have obtained actual knowledge of such Event of Default.

         SECTION 2.8. CONFLICTING INTERESTS. The Trust Agreement shall be deemed
to be specifically described in this Preferred Securities Guarantee for the
purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.

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                                  ARTICLE III.
                            POWERS, DUTIES AND RIGHTS
                       OF THE PREFERRED GUARANTEE TRUSTEE

         SECTION 3.1. POWERS AND DUTIES OF THE PREFERRED GUARANTEE TRUSTEE.

         (a) This Preferred Securities Guarantee shall be held by the Preferred
Guarantee Trustee for the benefit of the Holders of the Preferred Securities,
and the Preferred Guarantee Trustee shall not transfer this Preferred Securities
Guarantee to any Person except a Holder of Preferred Securities exercising his
or her rights pursuant to Section 5.4(b) or to a Successor Preferred Guarantee
Trustee on acceptance by such Successor Preferred Guarantee Trustee of its
appointment to act as Successor Preferred Guarantee Trustee. The right, title
and interest of the Preferred Guarantee Trustee shall automatically vest in any
Successor Preferred Guarantee Trustee, and such vesting and cessation of title
shall be effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Preferred Guarantee
Trustee.

         (b) If an Event of Default actually known to a Responsible Officer of
the Preferred Guarantee Trustee has occurred and is continuing, the Preferred
Guarantee Trustee shall enforce this Preferred Securities Guarantee for the
benefit of the Holders of the Preferred Securities.

         (c) The Preferred Guarantee Trustee, before the occurrence of any Event
of Default and after the curing of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Preferred Securities Guarantee, and no implied covenants shall be read into
this Preferred Securities Guarantee against the Preferred Guarantee Trustee. In
case an Event of Default has occurred (that has not been cured or waived
pursuant to Section 2.6) and is actually known to a Responsible Officer of the
Preferred Guarantee Trustee, the Preferred Guarantee Trustee shall exercise such
of the rights and powers vested in it by this Preferred Securities Guarantee,
and use the same degree of care and skill in its exercise thereof, as a prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.

         (d) No provision of this Preferred Securities Guarantee shall be
construed to relieve the Preferred Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

             (i)   prior to the occurrence of any Event of Default and after the
         curing or waiving of all such Events of Default that may have occurred:

                   (A) the duties and obligations of the Preferred Guarantee
             Trustee shall be determined solely by the express provisions of
             this Preferred Securities Guarantee, and the Preferred Guarantee
             Trustee shall not be liable except for the performance of such
             duties and obligations as are specifically set forth in this
             Preferred Securities Guarantee, and no implied covenants or
             obligations shall be read into this Preferred Securities Guarantee
             against the Preferred Guarantee Trustee; and

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                           (B) in the absence of bad faith on the part of the
                  Preferred Guarantee Trustee, the Preferred Guarantee Trustee
                  may conclusively rely, as to the truth of the statements and
                  the correctness of the opinions expressed therein, upon any
                  certificates or opinions furnished to the Preferred Guarantee
                  Trustee and conforming to the requirements of this Preferred
                  Securities Guarantee; but in the case of any such certificates
                  or opinions that by any provision hereof are specifically
                  required to be furnished to the Preferred Guarantee Trustee,
                  the Preferred Guarantee Trustee shall be under a duty to
                  examine the same to determine whether or not they conform to
                  the requirements of this Preferred Securities Guarantee;

                  (ii)  the Preferred Guarantee Trustee shall not be liable for
         any error of judgment made in good faith by a Responsible Officer of
         the Preferred Guarantee Trustee, unless it shall be proved that the
         Preferred Guarantee Trustee was negligent in ascertaining the pertinent
         facts upon which such judgment was made;

                  (iii) the Preferred Guarantee Trustee shall not be liable with
         respect to any action taken or omitted to be taken by it in good faith
         in accordance with the direction of the Holders of not less than a
         Majority in Liquidation Amount of the Preferred Securities relating to
         the time, method and place of conducting any proceeding for any remedy
         available to the Preferred Guarantee Trustee, or exercising any trust
         or power conferred upon the Preferred Guarantee Trustee under this
         Preferred Securities Guarantee; and

                  (iv)  no provision of this Preferred Securities Guarantee
         shall require the Preferred Guarantee Trustee to expend or risk its own
         funds or otherwise incur personal financial liability in the
         performance of any of its duties or in the exercise of any of its
         rights or powers, if the Preferred Guarantee Trustee shall have
         reasonable grounds for believing that the repayment of such funds or
         liability is not reasonably assured to it under the terms of this
         Preferred Securities Guarantee or indemnity, reasonably satisfactory to
         the Preferred Guarantee Trustee, against such risk or liability is not
         reasonably assured to it.

         SECTION 3.2. CERTAIN RIGHTS OF THE PREFERRED GUARANTEE TRUSTEE.

         (a) Subject to the provisions of Section 3.1:

             (i)   the Preferred Guarantee Trustee may conclusively rely, and
         shall be fully protected in acting or refraining from acting upon, any
         resolution, certificate, statement, instrument, opinion, report,
         notice, request, direction, consent, order, bond, debenture, note,
         other evidence of indebtedness or other paper or document believed by
         it to be genuine and to have been signed, sent or presented by the
         proper party or parties;

             (ii)  any direction or act of the Guarantor contemplated by this
         Preferred Securities Guarantee shall be sufficiently evidenced by an
         Officers' Certificate;

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             (iii)  whenever, in the administration of this Preferred Securities
         Guarantee, the Preferred Guarantee Trustee shall deem it desirable that
         a matter be proved or established before taking, suffering or omitting
         any action hereunder, the Preferred Guarantee Trustee (unless other
         evidence is herein specifically prescribed) may, in the absence of bad
         faith on its part, request and conclusively rely upon an Officers'
         Certificate which, upon receipt of such request, shall be promptly
         delivered by the Guarantor;

             (iv)   the Preferred Guarantee Trustee shall have no duty to see to
         any recording, filing or registration of any instrument (or any
         rerecording, refiling or reregistration thereof);

             (v)    the Preferred Guarantee Trustee may consult with counsel,
         and the written advice or opinion of such counsel with respect to legal
         matters shall be full and complete authorization and protection in
         respect of any action taken, suffered or omitted by it hereunder in
         good faith and in accordance with such advice or opinion. Such counsel
         may be counsel to the Guarantor or any of its Affiliates and may
         include any of its employees. The Preferred Guarantee Trustee shall
         have the right at any time to seek instructions concerning the
         administration of this Preferred Securities Guarantee from any court of
         competent jurisdiction;

             (vi)   the Preferred Guarantee Trustee shall be under no obligation
         to exercise any of the rights or powers vested in it by this Preferred
         Securities Guarantee at the request or direction of any Holder, unless
         such Holder shall have provided to the Preferred Guarantee Trustee such
         security and indemnity, reasonably satisfactory to the Preferred
         Guarantee Trustee, against the costs, expenses (including reasonable
         attorneys' fees and expenses and the expenses of the Preferred
         Guarantee Trustee's agents, nominees or custodians) and liabilities
         that might be incurred by it in complying with such request or
         direction, including such reasonable advances as may be requested by
         the Preferred Guarantee Trustee; provided that, nothing contained in
         this Section 3.2(a)(vi) shall be taken to relieve the Preferred
         Guarantee Trustee, upon the occurrence and during the continuance of an
         Event of Default, of its obligation to exercise the rights and powers
         vested in it by this Preferred Securities Guarantee;

             (vii)  the Preferred Guarantee Trustee shall not be bound to make
         any investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         direction, consent, order, bond, debenture, note, other evidence of
         indebtedness or other paper or document, but the Preferred Guarantee
         Trustee, in its discretion, may make such further inquiry or
         investigation into such facts or matters as it may see fit;

             (viii) the Preferred Guarantee Trustee may execute any of the
         trusts or powers hereunder or perform any duties hereunder either
         directly or by or through agents, nominees, custodians or attorneys,
         and the Preferred Guarantee Trustee shall not be responsible for any
         misconduct or negligence on the part of any agent or attorney appointed
         with due care by it hereunder;

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             (ix)   no third party shall be required to inquire as to the
         authority of the Preferred Guarantee Trustee to so act or as to its
         compliance with any of the terms and provisions of this Preferred
         Securities Guarantee, both of which shall be conclusively evidenced by
         the Preferred Guarantee Trustee's or its agent's taking such action;

             (x)    whenever in the administration of this Preferred Securities
         Guarantee the Preferred Guarantee Trustee shall deem it desirable to
         receive instructions with respect to enforcing any remedy or right or
         taking any other action hereunder, the Preferred Guarantee Trustee (A)
         may request instructions from the Holders of a Majority in Liquidation
         Amount of the Preferred Securities, (B) may refrain from enforcing such
         remedy or right or taking such other action until such instructions are
         received, and (C) shall be protected in conclusively relying on or
         acting in accordance with such instructions.

         (b) No provision of this Preferred Securities Guarantee shall be deemed
to impose any duty or obligation on the Preferred Guarantee Trustee to perform
any act or acts or exercise any right, power, duty or obligation conferred or
imposed on it in any jurisdiction in which it shall be illegal, or in which the
Preferred Guarantee Trustee shall be unqualified or incompetent in accordance
with applicable law, to perform any such act or acts or to exercise any such
right, power, duty or obligation. No permissive power or authority available to
the Preferred Guarantee Trustee shall be construed to be a duty.

         SECTION 3.3. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE. The
Recitals contained in this Guarantee shall be taken as the statements of the
Guarantor, and the Preferred Guarantee Trustee does not assume any
responsibility for their correctness. The Preferred Guarantee Trustee makes no
representation as to the validity or sufficiency of this Preferred Securities
Guarantee.

                                   ARTICLE IV.
                         THE PREFERRED GUARANTEE TRUSTEE

         SECTION 4.1. THE PREFERRED GUARANTEE TRUSTEE; ELIGIBILITY.

         (a) There shall at all times be a Preferred Guarantee Trustee which
shall:

             (i)   not be an Affiliate of the Guarantor; and

             (ii)  be a Person permitted by the Securities and Exchange
         Commission to act as an institutional trustee under the Trust Indenture
         Act, authorized under such laws to exercise corporate trust powers,
         having a combined capital and surplus of at least $50,000,000, and
         subject to supervision or examination by federal, state, territorial or
         District of Columbia authority. If such Person publishes reports of
         condition at least annually, pursuant to law or to the requirements of
         its supervising or examining authority referred to above, then, for the
         purposes of this Section 4.1(a)(ii), the combined capital and surplus
         of such

                                       10
<PAGE>   15

         Person shall be deemed to be its combined capital and surplus as
         set forth in its most recent report of condition so published.

         (b) If at any time the Preferred Guarantee Trustee shall cease to be
eligible to so act under Section 4.1(a), the Preferred Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 4.2(c).

         (c) If the Preferred Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Preferred Guarantee Trustee and the Guarantor shall in all
respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

         SECTION 4.2. APPOINTMENT, REMOVAL AND RESIGNATION OF THE PREFERRED
GUARANTEE TRUSTEE.

         (a) Subject to Section 4.2(b), the Preferred Guarantee Trustee may be
appointed or removed without cause at any time by the Guarantor.

         (b) The Preferred Guarantee Trustee shall not be removed in accordance
with Section 4.2(a) until a Successor Preferred Guarantee Trustee has been
appointed and has accepted such appointment by written instrument executed by
such Successor Preferred Guarantee Trustee and delivered to the Guarantor.

         (c) The Preferred Guarantee Trustee appointed to office shall hold
office until a Successor Preferred Guarantee Trustee shall have been appointed
or until its removal or resignation. The Preferred Guarantee Trustee may resign
from office (without need for prior or subsequent accounting) by an instrument
in writing executed by the Preferred Guarantee Trustee and delivered to the
Guarantor, which resignation shall not take effect until a Successor Preferred
Guarantee Trustee has been appointed and has accepted such appointment by
instrument in writing executed by such Successor Preferred Guarantee Trustee and
delivered to the Guarantor and the resigning Preferred Guarantee Trustee.

         (d) If no Successor Preferred Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery to the Guarantor of an instrument of resignation, the
resigning Preferred Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Preferred Guarantee Trustee. Such
court may thereupon, after prescribing such notice, if any, as it may deem
proper, appoint a Successor Preferred Guarantee Trustee.

         (e) No Preferred Guarantee Trustee shall be liable for the acts or
omissions to act of any Successor Preferred Guarantee Trustee.

         (f) Upon termination of this Preferred Securities Guarantee or removal
or resignation of the Preferred Guarantee Trustee pursuant to this Section 4.2,
the Guarantor shall pay to the Preferred Guarantee Trustee all fees and expenses
accrued to the date of such termination, removal or resignation.

                                       11
<PAGE>   16

                                   ARTICLE V.
                                    GUARANTEE

         SECTION 5.1. GUARANTEE. The Guarantor irrevocably and unconditionally
agrees to pay in full to the Holders the Guarantee Payments (without duplication
of amounts theretofore paid by the Trust), as and when due, regardless of any
defense, right of set-off or counterclaim that the Trust may have or assert. The
Guarantor's obligation to make a Guarantee Payment may be satisfied by direct
payment of the required amounts by the Guarantor to the Holders or by causing
the Trust to pay such amounts to the Holders.

         SECTION 5.2. WAIVER OF NOTICE AND DEMAND. The Guarantor hereby waives
notice of acceptance of this Preferred Securities Guarantee and of any liability
to which it applies or may apply, presentment, demand for payment, any right to
require a proceeding first against the Trust or any other Person before
proceeding against the Guarantor, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands.

         SECTION 5.3. OBLIGATIONS NOT AFFECTED. The obligations, covenants,
agreements and duties of the Guarantor under this Preferred Securities Guarantee
shall in no way be affected or impaired by reason of the happening from time to
time of any of the following:

         (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Trust of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Trust;

         (b) the extension of time for the payment by the Trust of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debentures or any extension of the maturity date of the Debentures permitted
by the Indenture);

         (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Preferred Securities, or
any action on the part of the Trust granting indulgence or extension of any
kind;

         (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Trust or any of the assets of the
Trust;

         (e) any invalidity of, or defect or deficiency in, the Preferred
Securities;

                                       12
<PAGE>   17
         (f) any failure or omission to receive any regulatory approval or
consent required in connection with the Preferred Securities (or the common
equity securities issued by the Trust), including the failure to receive any
approval of the Board of Governors of the Federal Reserve System required for
the redemption of the Preferred Securities;

         (g) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

         (h) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.

         There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

         SECTION 5.4. RIGHTS OF THE HOLDERS.

         (a) The Holders of a Majority in Liquidation Amount of the Preferred
Securities have the right to direct the time, method and place of conducting of
any proceeding for any remedy available to the Preferred Guarantee Trustee in
respect of this Preferred Securities Guarantee or exercising any trust or power
conferred upon the Preferred Guarantee Trustee under this Preferred Securities
Guarantee.

         (b) Any Holder of Preferred Securities may institute and prosecute a
legal proceeding directly against the Guarantor to enforce its rights under this
Preferred Securities Guarantee, without first instituting and prosecuting a
legal proceeding against the Trust, the Preferred Guarantee Trustee or any other
Person.

         SECTION 5.5. GUARANTEE OF PAYMENT. This Preferred Securities Guarantee
creates a guarantee of payment and not of collection.

         SECTION 5.6. SUBROGATION. The Guarantor shall be subrogated to all (if
any) rights of the Holders of the Preferred Securities against the Trust in
respect of any amounts paid to such Holders by the Guarantor under this
Preferred Securities Guarantee; provided, however, that the Guarantor shall not
(except to the extent required by mandatory provisions of law) be entitled to
enforce or exercise any right that it may acquire by way of subrogation or any
indemnity, reimbursement or other agreement, in all cases as a result of payment
under this Preferred Securities Guarantee, if, at the time of any such payment,
any amounts are due and unpaid under this Preferred Securities Guarantee. If any
amount shall be paid to the Guarantor in violation of the preceding sentence,
the Guarantor agrees to hold such amount in trust for the Holders and to pay
over such amount to the Holders.

                                       13
<PAGE>   18

         SECTION 5.7. INDEPENDENT OBLIGATIONS. The Guarantor acknowledges that
its obligations hereunder are independent of the obligations of the Trust with
respect to the Preferred Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Preferred Securities Guarantee notwithstanding the occurrence of
any event referred to in subsections (a) through (h), inclusive, of Section 5.3
hereof.

                                  ARTICLE VI.
                   LIMITATION OF TRANSACTIONS; SUBORDINATION

         SECTION 6.1. LIMITATION ON TRANSACTIONS. So long as any of the
Preferred Securities remain outstanding, if there shall have occurred an Event
of Default under this Preferred Securities Guarantee Agreement, an event of
default under the Trust Agreement or during an Extension Period (as defined in
the Indenture), then (a) neither the Guarantor nor any of its Subsidiaries (as
defined in the Indenture) shall declare or pay any dividend on, make any
distributions with respect to, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of its capital stock except as
permitted in such circumstances by the Indenture (b) the Guarantor shall not
make any payment of principal or interest on or repay, repurchase or redeem any
debt securities issued by the Guarantor which rank pari passu with or junior to
the Debentures other than payments under this Preferred Securities Guarantee and
(c) the Guarantor shall not redeem, purchase or acquire less then all of the
Outstanding Debentures or any of the Preferred Securities.

         SECTION 6.2 RANKING. This Preferred Securities Guarantee will
constitute an unsecured obligation of the Guarantor and will rank (a)
subordinate and junior in right of payment to all Senior Debt, Subordinated Debt
and Additional Senior Obligations (as defined in the Indenture) of the
Guarantor, (b) pari passu with the most senior preferred securities now or
hereafter issued by the Guarantor and with any guarantee now or hereafter
entered into by the Guarantor in respect of any preferred securities of any
Affiliate of the Guarantor, and (c) senior to the Guarantor's common stock.

                                  ARTICLE VII.
                                  TERMINATION

         SECTION 7.1. TERMINATION. This Preferred Securities Guarantee shall
terminate upon (a) full payment of the Redemption Price of all the Preferred
Securities, (b) full payment of the amounts payable in accordance with the Trust
Agreement upon liquidation of the Trust, or (c) distribution of the Debentures
to the Holders of the Preferred Securities. Notwithstanding the foregoing, this
Preferred Securities Guarantee shall continue to be effective or shall be
reinstated, as the case may be, if at any time any Holder of Preferred
Securities must restore payment of any sums paid under the Preferred Securities
or under this Preferred Securities Guarantee.

                                       14
<PAGE>   19

                                  ARTICLE VIII.
                                 INDEMNIFICATION

         SECTION 8.1. EXCULPATION.

         (a) No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor or any Covered Person for any loss,
damage or claim incurred by reason of any act or omission performed or omitted
by such Indemnified Person in good faith in accordance with this Preferred
Securities Guarantee and in a manner that such Indemnified Person reasonably
believed to be within the scope of the authority conferred on such Indemnified
Person by this Preferred Securities Guarantee or by law, except that an
Indemnified Person shall be liable for any such loss, damage or claim incurred
by reason of such Indemnified Person's negligence or willful misconduct with
respect to such acts or omissions.

         (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to the Holders of the Preferred Securities might properly be
paid.

         SECTION 8.2. INDEMNIFICATION. The Guarantor agrees to indemnify each
Indemnified Person for, and to hold each Indemnified Person harmless against,
any loss, liability or expense incurred without negligence or bad faith on its
part, arising out of or in connection with the acceptance or administration of
the trust or trusts hereunder, including the costs and expenses (including
reasonable legal fees and expenses) of defending itself against, or
investigating, any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The obligation to
indemnify as set forth in this Section 8.2 shall survive the termination of this
Preferred Securities Guarantee.

                                   ARTICLE IX.
                                  MISCELLANEOUS

         SECTION 9.1. SUCCESSORS AND ASSIGNS. All guarantees and agreements
contained in this Preferred Securities Guarantee shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall
inure to the benefit of the Holders of the Preferred Securities then
outstanding.

         SECTION 9.2. AMENDMENTS. Except with respect to any changes that do not
adversely affect the rights of the Holders (in which case no consent of the
Holders will be required), this Preferred Securities Guarantee may only be
amended with the prior approval of the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities. The provisions of Article VI of
the Trust Agreement with respect to meetings of the Holders of the Preferred
Securities apply to the giving of such approval.

                                       15
<PAGE>   20

         SECTION 9.3. NOTICES. All notices provided for in this Preferred
Securities Guarantee shall be in writing, duly signed by the party giving such
notice, and shall be delivered, telecopied or mailed by registered or certified
mail, as follows:

         (a) If given to the Preferred Guarantee Trustee, at the Preferred
Guarantee Trustee's mailing address set forth below (or such other address as
the Preferred Guarantee Trustee may give notice of to the Holders of the
Preferred Securities):

                             Wilmington Trust Company
                             Rodney Square North
                             1100 North Market Street
                             Wilmington, Delaware 19890-0001
                             Attention:   Corporate Trust Administration

         (b) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Holders of the Preferred Securities):

                             Baylake Corp.
                             217 North Fourth Avenue
                             Sturgeon Bay, Wisconsin 54235
                             Attention: Steven D. Jennerjohn, Treasurer

         (c) If given to any Holder of Preferred Securities, at the address set
forth on the books and records of the Trust.

         All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

         SECTION 9.4. BENEFIT. This Preferred Securities Guarantee is solely for
the benefit of the Holders of the Preferred Securities and, subject to Section
3.1(a), is not separately transferable from the Preferred Securities.

         SECTION 9.5. GOVERNING LAW. THIS PREFERRED SECURITIES GUARANTEE SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF WISCONSIN.

                                       16
<PAGE>   21

         This Preferred Securities Guarantee is executed as of the day and year
first above written.

                                  BAYLAKE CORP.,
                                  as Guarantor

                                  By: __________________________________________
                                          Thomas L. Herlache
                                          President and Chief Executive Officer

                                  WILMINGTON TRUST COMPANY,
                                  as Preferred Guarantee Trustee

                                  By: __________________________________________

                                          Name:_________________________________

                                          Title: _______________________________

                                       17<PAGE>   1
                                                                    EXHIBIT 10.5

                                                             GULFCOAST TERMINALS

                            SALE OF ASSETS AGREEMENT

     AGREEMENT dated May 10, 1999, between AMERADA HESS CORPORATION, a Delaware
corporation, having an office at One Hess Plaza, Woodbridge, New Jersey 07095
("Seller"), and WILLIAMS ENERGY VENTURES, INC., a Delaware corporation, having
an office at One Williams Center, Tulsa, Oklahoma 74172, ("Buyer").

     THE PARTIES AGREE AS FOLLOWS:

     1. PURCHASED ASSETS. Seller will sell to Buyer and Buyer will purchase from
Seller at the closing of title (defined in Article 3), all of Seller's right,
title and interest in (a) the properties described on Schedule 1.a (collectively
the "Properties," which definition will also include pipeline easements and
rights of way associated with the Properties), (b) the equipment and personal
property located on each property, which shall include but is not limited to
those items listed on Schedule 1.b (the "Personalty"), (c) to the extent
assignable to Buyer, the contracts used and necessary for the ownership and
operation of the Properties and Personalty as currently operated (the
"Contracts") and (d) the merchantable petroleum products inventories, consisting
of all vehicle refueling tanks and line fill owned by Seller ("Petroleum
Inventory") located on the Properties at the Closing as verified pursuant to
Section 4.2 (the Properties, Personalty and Petroleum Inventory referred to
collectively as the "Purchased Assets"); provided that the Purchased Assets to
be transferred to Buyer will not include the assets or contracts described in
Schedule 1.c.

Sale of Assets Agreement - GulfCoast Terminals
<PAGE>   2

     2. PURCHASE PRICE.

          2.1. The purchase price will be Two Hundred and Eleven Million
($211,000,000) Dollars plus the estimated value of the Petroleum Inventory,
determined in accordance with Section 4.2 ("Purchase Price"), paid by wire
transfer of immediately available federal funds at the Closing to an account
designated by Seller.

     3. CLOSING.

          3.1. The closing will take place at the offices of Seller in
Woodbridge, New Jersey, within sixty (60) days after the date of this Agreement
(the "Closing"). Buyer will designate the Closing date to be held within the
sixty (60) day period by providing at least ten (10) days written notice to
Seller, or, in the absence of notice, the date of Closing will be the last
business day of the sixty (60) day period (the "Closing Date"). The deadline for
the Closing Date (a) may be extended by the consent of Seller and Buyer, (b)
will be extended as provided in Sections 7.2, 8.5, 8.6.2 and Article 13, and (c)
will be extended an additional 30 days if required to allow sufficient time for
survey and title work to be completed together with completion of Buyer's and
Title Company's analysis of same in accordance with Sections 8.4 and 8.5.

          3.2. At the Closing, Buyer will pay the Purchase Price to Seller and
Seller will deliver to Buyer, Special Warranty Deeds in the form of Exhibit 3.2a
(to be conformed to meet local custom) for the Properties, in recordable form,
and Bills of Sale in the form of Exhibit 3.2b for the Personalty and Petroleum
Inventory.

          3.3. Buyer and Seller agree to negotiate in good faith a transition
services agreement to be entered into at Closing under which Seller agrees to
provide certain services to Buyer including accounting, technical, product
scheduling, information services support, operations support, environmental
support and other services reasonably requested by Buyer to

Sale of Assets Agreement - GulfCoast Terminals
                                       2
<PAGE>   3

avoid disruptions to the operations and conduct of business at the Purchased
Assets for a period of no longer than 120 days in order to transition the
ownership of the Purchased Assets from seller to Buyer, provided, however, that
Seller will make available to Buyer the use of the System 36, as currently used
in support of the Purchased Assets, until December 31, 1999. Buyer agrees to pay
Seller a fee in the amount of Seller's reasonable actual costs and expenses for
performing such services.

          3.4. At the Closing, Seller shall deliver, or cause to be delivered,
to Buyer the following in form and substance satisfactory to Buyer:

               (a) Assignment and Assumption Agreement related to the Contracts;

               (b) Assignment Agreement relating to rights of way, easements and
other grants of real property;

               (c) Copies of all written or electronically stored files, maps,
records, documents and other instruments in the possession or control of Seller
primarily related to the Purchased Assets, including, without limitation, those
related to construction, acquisition, maintenance, operation or regulatory
compliance of the Purchased Assets;

               (d) Copy of duly adopted resolutions of the Board of Directors of
Seller approving the execution, delivery and performance of this Agreement
certified by an officer;

               (e) Officer's certificate that Seller's representations and
warranties are true and correct as of the Closing Date;

               (f) A Non-Foreign Affidavit; and

Sale of Assets Agreement - GulfCoast Terminals
                                       3
<PAGE>   4

               (g) As applicable, estoppel certificate(s) from each shipper
certifying the portion of petroleum inventory due such shipper as of the Closing
Date pursuant to Section 4.2 herein.

     4. CHANGEOVER OF PROPERTIES.

          4.1. Seller covenants that during the period from the date of this
Agreement until the Closing Date:

               (a) except with the consent of Buyer, it will own and operate the
Purchased Assets and perform the Contracts in the ordinary course of business
and substantially in the some manner as currently operated or performed, as the
case may be;

               (b) except with the consent of Buyer, it will maintain the
Properties and Personalty in substantially the some condition as existing on the
date of this Agreement, other than normal wear and tear;

               (c) except with the consent of Buyer, it will not sell, lease or
dispose of Properties or Personalty with a value, individually or in the
aggregate, in excess of $50,000 except in the ordinary course consistent with
past practice;

               (d) except with the consent of Buyer, it will not terminate, or
amend or modify in any respect, any material permit, governmental approval or
similar authorization, other than in connection with the transaction
contemplated by this Agreement;

               (e) it will not take any action that would, or that could
reasonably be expected to, result in any of the conditions set forth in Article
16 not being satisfied;

               (f) it will maintain records relating to the Purchased Assets
consistent with past practice;

Sale of Assets Agreement - GulfCoast Terminals
                                       4
<PAGE>   5

               (g) it will continue in full force and effect the insurance
currently maintained by Seller on the Purchased Assets with substantially the
same form and with the same limits and deductibles as presently maintained by
Seller;

               (h) it will not encumber any of its interest in the Purchased
Assets;

               (i) except with the consent of Buyer, it will not enter into any
material agreements, commitments or contracts affecting the Purchased Assets
other than agreements in the ordinary course of business (including agreements
with its customers for storage in the Purchased Assets) or in accordance with
past practices, and in no event for any term in excess of thirty (30) days
following the Closing Date;

               (j) it will not settle any pending judicial or administrative
litigation or claim applicable to Seller's interest in the Purchased Assets
except for settlements which does not impose any obligation on the Purchased
Assets or the operation of the Purchased Assets which extends beyond the Closing
Date; and

               (k) it will not make any material changes to the physical
characteristics of the Purchased Assets.

          4.2. On the Closing Date, the tank portion of the Petroleum Inventory
will be verified and inventoried according to the procedures set out in Section
4.3 and the line fill portion of the Petroleum Inventory will be inventoried by
a method acceptable to the parties. Buyer will purchase the Petroleum Inventory
at the price formulas set forth in Exhibit 4.2. No later than 3 business days
prior to Closing, Seller will provide Buyer with an estimate of Petroleum
Inventory which will be on hand at Closing and Buyer will pay Seller at Closing
based on the estimate by wire transfer of immediately available federal funds to
an account designated by Seller. Any necessary adjustments will be made within
twenty (20) days after

Sale of Assets Agreement - GulfCoast Terminals
                                       5
<PAGE>   6

Closing. In no event will the actual volume of the Petroleum Inventory on the
date of Closing exceed 35,000 barrels of gasoline, 9,000 barrels of #6 oil and
1,500 barrels of vehicle fuels, in each case plus or minus 10%.

          4.3. It is understood by the parties that Seller will have, as of the
Closing Date, ownership or custody of an inventory of third party owned products
at the Properties ("Third Party Inventory"). The Third Party Inventory is not
the property of Seller, but is the property of Seller's shippers. The Third
Party Inventory is specifically excluded from this sale, except as to the
transfer of its custody from Seller to Buyer. On the Closing Date, the quality
of the Third Party Inventory will be in compliance with Seller's records
relating to product received from customers and stored at the Purchased Assets,
Seller will transfer custody of the Third Party Inventory to Buyer, and Buyer
will issue to Seller the necessary documentation to acknowledge receipt of the
Third Party Inventory upon Buyer's verification and acceptance of the physical
inventory.

          Representatives of both Buyer and Seller will be present to verify and
accept the physical inventory as of the Closing Date. No later than 10 days
prior to Closing, Buyer and Seller will agree to (x) the procedures relating to
the Closing Date transfer of the Properties (including the receipt and delivery
of product on the Closing Date), (y) an independent inspector (the "Independent
Inspector") who will calculate or measure the Third Party Inventory which
consists of all contents located either in above-ground storage tanks or pipe
lines at the Properties, and (z) the timing of such inspection on the Closing
Date. The calculation of the Third Party Inventory will be recorded using the
following categories of items: (A) all volumes of BS&W as measured by hand gauge
lines, and (B) all volumes of petroleum products in storage tanks at the
Properties ("Products") as measured by hand gauge lines. The volumes of

Sale of Assets Agreement - GulfCoast Terminals
                                       6
<PAGE>   7

Products measured will be adjusted to 60 degrees Fahrenheit and, as indicated by
the separate measurement of BS&W, will exclude any water. Buyer (or Buyer's
designated representatives) and Seller (or Seller's designated representatives)
will have the right to observe the identification, calculation and measurement
of the Third Party Inventory. Each of Buyer and Seller will pay fifty percent
(50%) of the Independent Inspector's fees and expenses. Seller will use
reasonable commercial efforts to control BS&W consistent with past practice and
generally accepted industry standards.

          Seller will provide Buyer with an estoppel certificate from each
shipper using the Properties and Personalty certifying (i) that to the shipper's
knowledge there is no material default of Seller under the relevant shipper's
agreement with Seller and that Seller has fully performed under the same, (ii) a
statement of the shipper's current inventory (calculated consistent with the
formula set forth in the preceding Paragraph) on the Properties, and (iii) a
statement of any amount paid Seller in advance of services to be rendered under
the shipper's agreement with Seller. Seller will pay to Buyer at Closing the
amount of any such prepayments, applicable to the period following the Closing
Date. As of the Closing Date, Buyer will assume custody responsibility for the
Third Party Inventory on behalf of and in accordance with the direction of the
respective shippers. Seller will settle any differences with its shippers
between book inventory and the Third Party Inventory.

          4.4. Seller will remove at its expense any excepted Personalty, as set
forth on Schedule 1.c, at its expense, and all of Seller's (or other parties')
advertising signs, trademarks and other identification from the Properties at or
prior to the Closing.

     5. PERMITS; CONTRACTS. Seller will use reasonable efforts, and cooperate
with Buyer, to transfer any permit, license or governmental approval ("Permit")
or Contract for the

Sale of Assets Agreement - GulfCoast Terminals
                                       7
<PAGE>   8

Properties which can be transferred. Buyer will bear any transfer fees and any
reasonable out-of-pocket costs of Seller in doing so. If all Contracts and
Permits necessary to operate the Properties as is and which can be obtained or
transferred in advance of the Closing are not obtained by or transferred to
Buyer before the Closing Date, after diligent effort by Seller and Buyer
(including without limitation by obtaining related consents and promptly making
necessary filings), Buyer will give written notice to Seller but the Closing
will not be delayed. Buyer will, to the extent permitted by law, operate under
and have the benefit of Seller's Permits and Contracts and Seller and Buyer will
cooperate upon and enter into such other arrangements as are necessary and
appropriate to permit Buyer to operate and have the use and benefit of the
Properties pending transfer of the Permits and Contracts. Seller and Buyer will
continue their diligent efforts and proceed promptly to obtain or transfer the
Permits and Contracts.

     6. TAXES; ASSESSMENTS.

          6.1. Except as otherwise provided in this Section 6, all property
taxes, assessments, water and sewer rents, utility charges, and other expenses
and revenues, if any, arising out of or relating to the Purchased Assets will be
apportioned and adjusted as of midnight preceding the Closing. Buyer and Seller
hereby agree to cooperate fully, following the Closing, in the distribution of
any such expense(s) and/or revenue(s), the amount of which is unknown as of the
Closing Date.

          6.2. That portion of real estate, personal property, and other ad
valorem taxes assessed for all years prior to 1999 against the Purchased Assets
shall be the responsibility of Seller. That portion of real estate, personal
property, and other ad valorem taxes assessed for the year 1999 against the
Purchased Assets which is payable by Seller shall be prorated between the
parties to the Closing Date, with Seller being responsible for the prorated
portion of such taxes

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up to the Closing Date, and Buyer being responsible for its prorated portion of
such taxes on the Closing Date and thereafter. In the event such taxes are
payable in arrears, Seller will pay Buyer, at Closing, Seller's estimated
proportionate share of 1999 real estate, personal property, and ad valorem
taxes, such estimate being based on the latest assessment and Buyer shall be
responsible for payment of all such taxes for the 1999 tax year. Upon payment
thereof, necessary corrections to the estimated 1999 amount paid at Closing by
Seller will be paid promptly by the appropriate party to the other party. In the
event that such taxes are payable in advance, Buyer will reimburse to Seller, at
Closing, the amount of such prepaid taxes which is attributable to the period on
and after the Closing Date.

          6.3. Buyer shall pay at Closing: (a) all recording fees; (b) all
survey fees; (c) fifty percent (50%) of any and all Title Company (as defined
herein) escrow agent fees and (d) fifty (50%) of the Title Company's cost of
preparing the Title Commitment and any updates thereto;

          6.4. Seller shall pay at Closing: (a) fifty percent (50%) of any and
all Title Company escrow agent fees; and (b) fifty (50%) of the Title Company's
cost of preparing the Title Commitment and any updates thereto.

     7. IMPROVEMENTS; RISK OF LOSS.

          7.1. This Agreement is entered into with Buyer's full knowledge of the
value of the Properties and improvements, and not on any representation as to
their value, character, quality or condition; other than as is expressly
provided in this Agreement. Except as expressly set forth in this Agreement,
Seller makes no warranty or representation, either oral or written, or express
or implied, as to the merchantability or the condition of the Purchased Assets
or their fitness or availability for any particular or general use or purpose
and Buyer waives any claim as

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to the merchantability or condition of the Purchased Assets or their fitness or
suitability for any particular or general use or purpose.

          7.2. Risk of loss or damage to the Properties and Personalty will be
on Seller until the Closing. Seller shall promptly notify Buyer of any casualty
in excess of $100,000 to the Purchased Assets prior to the Closing. In the event
of any such casualty, Seller shall notify the Buyer in writing whether it will
take remedial action (e.g. by undertaking repairs) to remedy the situation. If
Seller agrees to take remedial action, except as provided below, the Closing
will not be delayed and Seller shall use commercially reasonable efforts to
complete the remedial action within six (6) months of Closing. If Seller elects
not to take remedial action, Buyer will purchase the Purchased Assets under the
terms and conditions set forth herein with a reduction to Purchase Price as
agreed upon by Buyer and Seller, and in the event the amount of such reduction
cannot be determined by the parties, such matter will be submitted for binding
arbitration for resolution. Notwithstanding anything in this Section 7.2 to the
contrary, if the casualty has a material adverse effect on the Purchased Assets
taken as a whole or on the business conducted with the Purchased Assets, the
Closing may be delayed up to six (6) months so that Seller can make repairs, but
if under such event (i) Seller does not elect to repair or the repairs are not
completed within six (6) months of the original Closing Date or (ii) if the
length of time to complete such repairs has a material adverse effect on the
Purchased Assets taken as a whole or on the business conducted with the
Purchased Assets and the parties can not reasonably agree to a reduction in the
Purchase Price, Buyer may terminate this Agreement.

     8. INSPECTION.

          8.1. At all reasonable times from the date of this Agreement to
fifteen days prior to the Closing (the "Inspection Period"), Buyer and its
representatives will have the (i) right

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of access to all information in Seller's possession or capable of being obtained
by Seller by request pertaining primarily to the ownership, use and/or operation
of the Purchased Assets reasonably requested by Buyer in writing, including,
without limitation, records, books, contracts, commitments, reports, permits,
applications, monitoring reports, environmental assessments/audits, studies,
correspondence and any other relevant data in order that Buyer may make such
technical, legal, financial, accounting, environmental or other review or
investigation as Buyer deems desirable and Seller shall also make available its
officers, agents, employees and other representatives, during normal business
hours, to discuss with Buyer and Buyer's representatives any and all information
relating to the Purchased Assets and to the ownership, use and operation thereof
and Buyer agrees that Buyer may not contact Seller's customers to discuss
commercial agreements related thereto; and (ii) right of access to the
Properties and Personalty for the purpose of conducting surveys, inspections,
and such other examinations, including, without limitation, environmental
assessments, of the Property and Personalty as Buyer deems pertinent, convenient
or desirable in order to make its own evaluation of the Property and Personalty
(collectively, (i) and (ii) constitute the "Inspection"). Buyer will use
reasonable care in the course of performing the Inspection. Buyer will defend
and indemnify Seller for any claims or liabilities arising out of the
performance of the Inspection, except to the extent due to Seller's negligence.
In the exercise of its rights under this Section Buyer will minimize any
interference with Seller's operations on the Properties, will not engage in
substantive discussions with any site personnel unless accompanied by Seller's
management representatives and will give Seller reasonable advance written
notice of any Inspection activities. Buyer will pay all expenses associated with
the Inspection, including the disposal of any wastes generated by testing.
Seller may otherwise participate in the testing at its cost. Seller

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will have the right to approve, which approval will not be unreasonably
withheld, conditioned or delayed, and witness all testing activities. Upon
written request, Seller will be promptly provided with all nonprivileged written
information and reports, raw data and test results generated by the Inspection.
Buyer makes no representation as to the accuracy of such information. All
information pertaining to the Properties or Personality is subject to the
confidentiality provisions of Article 18.

          8.2. The Inspection may include only those environmental assessment
activities which are part of the ASTM Phase I Environmental Assessment Process
(as defined in ASTM standard E-1527), which includes records reviews, site
reconnaissance and interviews, but does not include any testing or sampling of
materials such as soil and groundwater. Buyer may, however, sample buildings and
equipment.

          8.3. Within five (5) days following the date of this Agreement, Seller
will provide to Buyer, at no cost to Buyer, any title information which Seller
may currently have in its possession or is reasonably available to Seller
relating to each of the Properties, including, without limitation, (i) any and
all plats of survey prepared prior to the date of this Agreement indicating the
boundaries of each of the Properties, (ii) copies of all recorded deeds or other
conveyance instruments into Seller or Seller's Affiliates, and (iii) copies of
all subsequent deeds or other conveyance instruments from Seller or Seller's
Affiliates into any other entity or individual. Seller makes no representation
as to the accuracy of this information; however, Seller shall make every
reasonable effort to provide Buyer with complete and accurate information to
facilitate preparation of surveys described in Section 8.4.

          8.4. Following delivery to Buyer of title information as described in
Section 8.3, Buyer may cause metes and bounds surveys to be made of each of the
Properties,

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excluding the pipeline easements and rights of way, by a registered
surveyor. Such survey shall be certified to Buyer, Seller and the Chicago Title
Insurance Company ("Title Company"). The metes and bounds description of this
survey shall then become the legal description of the Properties, excluding the
pipeline easement and rights of way.

          8.5. Promptly following Buyer's receipt of title information from
Seller as described in Section 8.3, Buyer may order a title commitment from the
Title Company ("Title Commitment") with respect to the Properties, excluding the
pipeline easements and rights of way. Within ten (10) days following Buyer's
receipt of the Title Commitment and within five (5) days of Buyer's receipt of
any amendment to any such Title Commitment showing any new title matter, Buyer
shall notify Seller in writing as to whether Buyer objects to any material title
matter which appears on such Title Commitment ("Title Defect"). Seller shall use
its reasonable commercial efforts to remove or cure any Title Defect during the
thirty (30) day period after receipt of Buyer's notice ("Cure Period") to remedy
Title Defects. In the event that Seller fails to remedy the Title Defects to
Buyer's reasonable satisfaction within the Cure Period, Buyer shall have the
option, exercisable within ten (10) days from the expiration of the Cure Period,
to:

               (a) accept the status of the title subject to the Title Defects
and proceed with the performance of this Agreement, in which case the Special
Warranty Deeds will be modified to make the Title Defect an exception to
Seller's warranties thereunder and both Seller and Buyer shall endeavor to agree
to an equitable reduction to the Purchase Price; and in the event such amount of
reduction cannot be agreed upon, such matter will be submitted for binding
arbitration for resolution;

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               (b) extend the Cure Period for a reasonable period mutually
agreeable to the parties to give Seller an additional opportunity to remedy the
Title Defects (at the end of which period, if Seller still has not cured the
Title Defect to Buyer's reasonable satisfaction, Buyer shall have ten (10) days
after such period ends to elect option (a) or (c) in this Section 8.5); or

               (c) terminate this Agreement by giving written notice to Seller,
in which event, except as otherwise provided herein, neither party shall have
any further rights or obligations hereunder.

          8.6.1. If prior to Closing either Seller or Buyer learns that any
representation or warranty contained in Article 9, 14 or 15 is or has become
untrue in any material respect, it will promptly so notify the other Party in
writing of the relevant facts and circumstances.

          8.6.2. If Seller is the notified Party or learns on its own that any
such representation or warranty is untrue, Seller will have until the earlier of
(i) fifteen (15) days from the date of the notice or its learning of the matter,
as applicable, or (ii) the Closing Date to notify Buyer in writing to either (a)
update the Seller's disclosure schedules to make the relevant representations
true and correct in all material respects in light of the facts and
circumstances or (b) notify Buyer that it will take remedial action (e.g. by
undertaking repairs) to cause the relevant representations to be true and
correct in all material respects in which case the Closing Date will be extended
to the extent necessary. Buyer will have the right to either (x) terminate this
Agreement if Seller (i) elects to take remedial action but the action has not
been completed within thirty (30) days of Seller's notice and the failure has a
material adverse effect on the condition or operation of the Purchased Assets
taken as a whole or on the business conducted with the Purchased Assets or (ii)
updates the Seller's disclosure schedules to the relevant

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<PAGE>   15

representations and warranties and such updates have a material adverse effect
on the condition or operation of the Purchased Assets taken as a whole or on the
business conducted with the Purchased Assets, or (y) reduce the Purchase Price
by an amount to be mutually determined by Buyer and Seller and in the event such
amount cannot be determined by the Parties hereto, then Buyer, in its reasonable
opinion, may elect to terminate this Agreement or cause such matter to be
submitted for binding arbitration for resolution.

          8.6.3. If Buyer is the notified Party, and Buyer fails to cure a
breach of a representation and warranty within thirty (30) days of the notice,
Seller will have the right to terminate this Agreement in addition to any other
remedies to which Seller is entitled.

     9. ENVIRONMENTAL LIABILITIES

          9.1. Definitions.

               "Best of Seller's Knowledge" means the knowledge of (i) the
Environmental Aide and Hydrocarbon Recovery Technicians at the Corpus Christi
terminal and (ii) current terminal management employees at a level of terminal
superintendent or higher who, after due inquiry, and in the normal scope of
their employment would have knowledge of the subject matter.

               "Buyer Indemnities" has the meaning set forth in Section 10.1.

               "Cleanup" means investigation, treatment, removal, containment,
monitoring or other remediation or response actions taken to (i) reduce to
acceptable levels risks from concentrations of Hazardous Substances present or
Released on, at or under a Property, or which are migrating from a Property or
(ii) to prevent or mitigate a Release of Hazardous Substances at a Property.

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               "Environmental Law" means any statute, regulation, rule, permit,
administrative order, ordinance, or other criteria or guidelines issued by a
Governmental Authority that regulates, or seeks to Cleanup or prevent, Releases
of pollutants or Hazardous Substances into water, land or air whose primary
purpose is protection of human health or the environment or natural resources.
Environmental Law does not include regulations designed to regulate the
condition, repair or adequacy for use of pipelines, such as requirements in 49
CFR Parts 190 to 195.

               "Environmental Claims" means any claims, liabilities, judgments,
obligations, demands, actions or causes of action, assessments, costs of
Cleanup, damages or expenses of every type and nature whatsoever (including,
without limitation, injury to or death of any person or persons, or damage to or
loss of any property), whether known or unknown, which arise under Environmental
Law with respect to the Properties or Personalty.

               "Environmental Losses" means any and all financial expenditures,
costs and expenses (including, without limitation, interest, penalties and
reasonable attorneys' fees, reasonable consultant fees and court costs incurred
in connection therewith and all reasonable costs and expenses of investigating
and defending any claim or any order, directive, final judgment, compromise,
settlement, fine, penalty, court costs or proceeding).

               "Environmental Tort" means personal injury or death or damage to
property in which a third party has an ownership or control interest, which
damage, injury or death arises from Hazardous Substances present or Released on,
at or under a Property, or migrating or emanating from a Property. Any action by
a third party is not an Environmental Tort to the extent the action seeks to
recover costs or expenses for, or to require, Cleanup. Any such Cleanup will be
conducted as provided in Section 9.3.

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               "Governmental Authority" means the United States and any state,
county, city or other political subdivision, agency, department, board, court or
instrumentality that has jurisdiction over the asset, entity or matter in
question.

               "Hazardous Substances" means those substances listed in 49 C.F.R.
Section 172.101 and 40 C.F.R. Part 302, petroleum and regulated substances as
defined in Subtitle I to RCRA; radiation; and any other chemical, material or
substance, or combination thereof, exposure to which is prohibited, limited or
regulated by any applicable Environmental Law.

               "Release" has the meaning provided in Section 101 (22) of CERCLA.

               "Seller Indemnitees" has the meaning set forth in Section 10.2.

               "Superseding Release" means a Release which takes place after the
Closing Date which substantially raises the remaining cost of any Cleanup at a
Property.

          9.2. Environmental Representations and Warranties.

               9.2.1. Seller makes only the following environmental
representations and warranties:

                    (i) except as disclosed in Schedule 9.2.1 (i), there is no
suit, action, claim, arbitration, administrative, governmental investigation or
other legal proceeding pending or, to the Best of Seller's Knowledge,
threatened, against or related to the Properties or Personalty thereon which
arises under Environmental Law;

                    (ii) to the Best of Seller's Knowledge, Seller has furnished
or made available to Buyer all documents and information in Seller's custody or
control relating to the environmental condition of the Properties or Personalty
thereon or requested by Buyer to be made available to it under Section 8.1;

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                    (iii) except as disclosed in Schedule 9.2.1 (iii), there are
no liens arising under any Environmental Law which apply to the Properties;

                    (iv) except as disclosed on Schedule 9.2.1 (iv), to the Best
of Seller's Knowledge, Seller's ownership, use and operation of the Properties
and/or the Personalty thereon is in material compliance with all Environmental
Laws applicable to the Properties and/or the Personalty and Seller has not
received notice from any Governmental Authority asserting any current act of
noncompliance. For the purposes of this Section 9.2.1(iv), a Release of
Hazardous Substances will not be deemed a violation of Environmental Laws;

                    (v) except as set forth in Schedule 9.2.1(v), Seller has, or
will have prior to Closing, all permits issued under any Environmental Law
necessary to conduct the business as presently conducted on the Properties;

                    (vi) except as set forth in Schedule 9.2.1(vi), to the Best
of Seller's Knowledge, there exists no threat of Release at, on, in, under, over
or in any way affecting the Properties or any Personalty located thereon; and

                    (vii) except as disclosed in Schedule 9.2.1(vii), no Cleanup
projects have been performed in the last two (2) years or are in the process of
being performed at the Properties or with respect to any Personalty located
thereon or to the Best of Seller's Knowledge, there is no pending Cleanup
required by a governmental authority at the Properties or with respect to the
Personalty thereon.

                    (viii) to the Best of Seller's Knowledge, all offsite
disposal of Hazardous Substances in wastes from the Properties has occurred in
compliance with applicable Environmental Law.

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               9.2.2. Seller makes no other representation or warranty as to (i)
Environmental Law or Environmental Liability or (ii) except as set forth in
Article 14, as to the suitability of the Properties or Personalty for any
purpose or as to the physical condition of the Properties or Personalty. ALL
WARRANTIES (WHETHER WRITTEN OR ORAL, EXPRESS OR IMPLIED) OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, CONDITION, DESIGN OR OTHERWISE ARE EXCLUDED.

               9.2.3. Buyer's remedy for the structural soundness, conditions,
repair or adequacy for use of the Personalty and fixtures to Property (included,
but not limited to, tanks and pipelines) will be pursuant to Article 14 and not
this Article 9.

          9.3. Seller's Obligation to Cleanup Pre-Closing Releases.

               9.3.1. Seller will conduct (in accordance with Section 9.6) and
pay for Cleanup of all Hazardous Substances present or Released prior to Closing
on, at or under each Property or portion of a Property or Personalty located
thereon, to the extent required on Schedule 9.3.1 ("Known Cleanup Obligations");
subject however to the limitations of Section 9.5.

               9.3.2. In addition to Seller's obligations under Section 9.3.1
and subject to the limitations of Section 9.5, Seller will pay all costs for,
and will conduct (in accordance with Section 9.6), each Cleanup of Hazardous
Substances on, at, under or migrating from a Property which are present at
concentrations that require Cleanup under applicable Environmental Law (an
"Environmental Noncompliance"), for which Buyer gives Seller written notice (a
"Remediation Notice") within five (5) years after Closing; provided that the
Hazardous Substances giving rise to the Environmental Noncompliance were present
or Released on, at or under a Property prior to Closing ("Unknown Cleanup
Obligations"). The Remediation Notice

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must be given within 90 days of the discovery of the Environmental Noncompliance
and must include (i) analyses of all soil or groundwater samples which identify
an Environmental Noncompliance and (ii) a site map showing the location or
locations from which such samples were taken. The Remediation Notice will be
deemed to provide Seller notice of any Environmental Noncompliance for
contaminated soils or plumes of contaminated groundwater which are directly
contiguous to the soil or groundwater samples identifying an Environmental
Noncompliance included with the Remediation Notice. If Buyer does not provide a
Remediation Notice for an Environmental Noncompliance in accordance with this
Section 9.3.2, then Buyer will assume and will undertake and pay for Cleanup of
such Environmental Noncompliance.

          9.4. Environmental Indemnities

               9.4.1. Subject to the limitation on liability of Section 9.5 and
the expiration of representations and warranties in Section 9.2, Seller will
defend, indemnify and hold Buyer Indemnitees harmless from and against all
Environmental Claims and resulting Environmental Losses:

                    (i) arising out of Cleanup which Seller is required to pay
or perform under Section 9.3.1;

                    (ii) arising out of Cleanup which Seller is required to pay
or perform under Section 9.3.2;

                    (iii) for fines or penalties for violation of any
Environmental Law to the extent that such violation arises from ownership or
operation of the Properties and/or the Personalty prior to Closing ("Preclosing
Fines"):

                    (iv) to the extent arising from ownership or operation of
the Properties prior to Closing, including, but not limited to, Environmental
Claims arising from any

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pre-Closing accident, fire, explosion, collapse, mechanical failure, or Release
of any Hazardous Substance, provided further that Buyer provides Seller with
written notice of the Environmental Claim within five (5) years from the date of
Closing. If Buyer does not provide written notice of such Environmental Claim
within the time provided in this Section 9.4.1, then Buyer will assume such
Environmental Claim, and will pay and discharge when due, resulting
Environmental Losses;

                    (v) arising out of any inaccuracy or breach by Seller of any
representation or warranty in Article 9;

                    (vi) arising under the Comprehensive Environmental Response,
Compensation, and Liability Act ("CERCLA"), the Resource Conservation and
Recovery Act ("RCRA") or state law analogs to CERCLA or RCRA based on Seller's
disposal or arrangement for disposal of any Hazardous Substance at a location
other than the Properties ("Superfund Claims"); or

                    (vii) arising from matters on Schedule 9.2.1 (i) - (vii).

               9.4.2. Buyer will defend, indemnify and hold Seller Indemnitees
harmless from and against all Environmental Claims and resulting Environmental
Losses:

                    (i) arising out of Environmental Claims, obligations and
liabilities assumed by Buyer under Sections 9.3.2, 9.4.1 (iv) or 9.5.2;

                    (ii) for fines or penalties for violation of any
Environmental Law to the extent that such violation arises from ownership or
operation of the Properties after the Closing;

                    (iii) to the extent arising from ownership or operation of
the Properties after the Closing, including, but not limited to, Environmental
Claims arising from

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any post-Closing accident, fire, explosion, collapse, mechanical failure, or
Release of any Hazardous Substance.

               9.5. Limits on Environmental Indemnities and Liability

                    9.5.1. Seller's liability and indemnity and other
obligations under this Article 9 for Environmental Claims and Environmental
Losses are limited as provided in this Section 9.5.

                    9.5.2. Except as set forth in Section 9.5.2(iii), Seller
will not be liable for and Buyer assumes liability:

                         (i) for the payment of the first $2,500,000 in
Environmental Losses incurred after the Closing Date for Environmental Claims
for which Seller would otherwise be required to indemnify Buyer under Section
9.4.2(ii), (iv) or (v) ("Seller's Basket") provided, however, that nothing in
this Section 9.5.2(i) affects Seller's obligation to conduct Cleanup under this
Agreement; and

                         (ii) for Environmental Losses incurred after the
Closing Date to the extent that the aggregate amount of Environmental Losses
(net of the value of any recovered products at Corpus Christi) exceeds, on a
cumulative basis (including Environmental Losses paid by Buyer under Section
9.5.2(i)), $15,000,000 (the "Liability Limit"). Seller will provide Buyer
written notice if the Liability Limit is exceeded. Seller will provide
reasonable documentation for all payments relating to Environmental Losses, if
the payments exceed the Liability Limit. At Seller's option, Buyer will conduct
and pay for all Cleanup at the Properties commencing sixty (60) days after
Seller gives Buyer notice under this Section 9.5.2 that the Liability Limit has
been exceeded.

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                         (iii) The Seller's Basket and the Liability Limit under
this Section 9.5.2. do not apply to Environmental Losses for: (a) Known Cleanup
Obligations; (b) Preclosing Fines; (c) Superfund Claims; (d) a suit or other
legal proceeding seeking to recover for an Environmental Tort arising solely
from ownership or operation of the Properties and/or the Personalty prior to
Closing and (e) matters on Schedule 9.2.1(i) - (vii).

                         (iv) Buyer will conduct and pay for Cleanup of the
contamination identified on Schedule 9.3.1 commencing on the fifteenth (15th)
anniversary of the Closing Date, provided that Seller has materially complied
with its obligations under Section 9.6.3.

                    9.5.3. Seller's obligations under Sections 9.3 and 9.4.1 to
pay for, perform, or indemnify Buyer with respect to Cleanup will terminate if
(i) the Governmental Authority determines that no further action is required by
Seller (x) for the Property (or portion of the Property) or Personalty located
thereon on Schedule 9.3.1 or (y) for an Environmental Noncompliance for which
Buyer has given a timely Remediation Notice, as the case may be, or (ii) there
is a Superseding Release at the Property (or portion of a Property) or from
Personalty located thereon and Seller pays Buyer the net present value of the
cost to Seller (determined without regard to the Superseding Release) to
complete Cleanup at that Property (or portion of a Property) or Personalty
located thereon, as reasonably determined by Seller and reasonably deemed
acceptable by Buyer, in which case Buyer will assume and pay for Cleanup. If the
parties are unable to agree, the issue will be submitted for binding
arbitration.

                    9.5.4. Seller's obligations under Sections 9.3.1 and 9.3.2
notwithstanding, Buyer will first look to the responsible parties identified on
the Schedule 9.5.4 for Cleanup of any Property (or portion of a Property) or
Personalty located thereon listed on

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<PAGE>   24

Schedule 9.5.4. If Buyer provides Seller a Remediation Notice under Section
9.3.2 for any Environmental Noncompliance for which Seller can reasonably
demonstrate that Seller is not the responsible party (including, but not limited
to, migration of Hazardous Substances onto a Property), Buyer will first look to
the responsible parties identified by Seller for Cleanup of such Environmental
Noncompliance. If the responsible party does not undertake and complete Cleanup
in accordance with Environmental Law, despite Buyer's reasonable efforts over at
least a ninety (90) day period to obtain performance of Cleanup by the
responsible party, then Buyer will notify Seller. If Seller is unable to obtain
performance of Cleanup by the responsible party within the next ninety (90) day
period, then Seller will promptly commence and diligently continue without undue
delay the Cleanup and pay for same in accordance with this Article 9, subject to
the other limitations and exceptions thereto in this Section 9.5.

                    9.5.5. If Buyer excavates, constructs on, regrades, or
otherwise changes the Property or Personalty located thereon and causes a
material increase in the cost of any Cleanup, Buyer must pay to Seller the
increase in the cost of Cleanup. Buyer's proposed activity may require approval
from a Governmental Authority.

                    9.5.6. Buyer and Seller agree to waive any rights to
special, incidental, consequential, indirect or punitive damages, including,
without limitation, loss of profits, diminution of value resulting from any
Environmental Claim.

                    9.5.7. Neither party shall have any liability for
Environmental Claims pursuant to this Article 9 unless written notice of such
claim has been delivered to the other party as required by Section 10.6 within
the applicable survival period as set forth in Section 9.9.

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          9.6. Right of Access and Conduct of Remediation.

               9.6.1. After Closing, Buyer will permit Seller, its agents,
contractors and employees, rent-free access to the Properties to continue the
performance of Cleanup (which includes, but is not limited to, sampling,
installation and maintenance of monitoring wells, or installation of remediation
systems) which Seller is required to conduct under this Article 9 or by any
appropriate Governmental Authority. Seller's conduct of Cleanup which Seller is
not required to conduct under this Article 9 is not an admission of liability
for the Cleanup or a waiver of Seller's rights under this Agreement.

               9.6.2. Buyer will cooperate with Seller so that Seller may
conduct Cleanup in compliance with Environmental Law and in a cost-effective and
efficient manner. Seller will use its reasonable commercial efforts to minimize
any disruption to the operation of the Properties or Personalty located thereon
resulting from Cleanup.

               9.6.3. Seller has the sole right to manage any Cleanup which
Seller conducts under this Article 9 or is required to conduct by any
Governmental Authority. All Cleanup undertaken under this Article 9 will (i) be
performed in a professional workerlike manner by qualified and if required by
law, licensed personnel or contractors, (ii) comply with Environmental Laws and
(iii) be performed in accordance with any schedule established by or under
permit, statute, regulation or enforceable order or directive of the relevant
Governmental Authority.

               9.6.4. Seller has the right to conduct all Cleanups using the
most cost-effective, commercially reasonable, Cleanup technologies and remedies
which comply with Environmental Laws and are acceptable to the Governmental
Authority. Seller may propose to Cleanup Hazardous Substances using site
specific corrective action standards (including, without

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<PAGE>   26

limitation, risk-based corrective action standards) and exposure controls which
are predicated on the continued use of the Property as a bulk terminal storage
facility, secured from general public access. Buyer will sign and record any
deed or other recordable real property instrument reasonably requested by Seller
either as directed by the Governmental Authority or as required Environmental
Law, which is necessary to permit the use of site specific corrective action
remedies or remedies based on exposure controls, provided that the instrument
does not interfere with the operation of the business as presently conducted on
the Property. Buyer also agrees not to use any groundwater on the Properties, if
such restriction is necessary to permit the use of site specific corrective
action remedies or remedies based on exposure controls.

               9.6.5. Materials generated by Cleanup may be treated or stored on
a Property in portable non-permanent property designed storage facilities and
managed in wastewater treatment systems on the Property without cost to Seller,
to the extent that such use (i) has no material impact on availability of the
wastewater system for the Buyer's use or on the cost of operation of such
wastewater system and (ii) is in compliance with Environmental Laws. Seller
shall be designated as the "Generator" of all such waste and shall be
responsible for characterizing and disposing (except for wastewater treated on a
Property under this Section) of same at its cost. Buyer shall be under no
obligation to construct or modify any wastewater treatment system. Buyer will
direct Seller as to where materials generated by any Cleanup may be stored on a
Property and Buyer's decision shall be controlling. Notwithstanding anything to
the contrary herein, Buyer may eliminate or modify any wastewater treatment
systems owned by Buyer as it deems appropriate for the conduct of its business
activities.

               9.6.6. Buyer will store any petroleum or petroleum products
recovered during Cleanup at Corpus Christi, and Seller will pay Buyer a
reasonable commercial rental for

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<PAGE>   27

such storage. Buyer will have the option to purchase such recovered
hydrocarbons. If Buyer purchases the recovered hydrocarbon, the reasonable
commercial value of the recovered hydrocarbon will be fixed on the Closing Date
and annually on each anniversary of the Closing Date based on the spot market
price of a comparable petroleum product or blendstock on such date. If Buyer and
Seller cannot agree on a price, Seller may, at its option, have Buyer store,
rather than purchase, recovered hydrocarbons, in which case Seller will pay
Buyer a reasonable commercial rental for such storage.

               9.6.7. Seller has installed and uses a wastewater treatment
system and three tanks at Corpus Christi to treat and store recovered
groundwater and to separate hydrocarbon products from the groundwater. Seller
retains ownership of the wastewater system and Buyer will own the tanks, which
may not be used by Buyer or Seller for any purpose other than Cleanup until the
Cleanup is completed. Buyer will operate the wastewater system and tanks in
compliance with Environmental Law without cost to Seller; except that Seller
will reimburse Buyer for the normal and reasonable incremental costs to operate
and maintain the tank and wastewater system. Maintenance costing in excess of
$1,000 requires Seller's advance approval, which will not be unreasonably
withheld. Buyer acknowledges that the No. 6 Fuel Oil heater at Corpus Christi is
used to comply with Environmental Laws as an emissions control device for the
wastewater system and further acknowledges that Seller will be permitted to use
such Fuel Oil heater. Such use will be without cost to Seller, except that
Seller will pay to Buyer the incremental cost to operate the Fuel Oil heater to
the extent that operation of the Fuel Oil heater is not necessary for operation
of the Corpus Christi Terminal as operated by Buyer.

               9.6.8. If Buyer or Seller or their respective invitees,
contractors, customers or agents, damage or destroy any personalty owned or used
by the other party (which,

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<PAGE>   28

in Seller's case, includes wells or other equipment used by Seller for Cleanup),
the party that caused the damage will reimburse the other for the reasonable
cost of repair or replacement of such property.

          9.7. Restriction on Transfer. If Buyer sells, leases or otherwise
transfers any Property, the obligations and duties of Seller will not inure or
extend to the transferee and will terminate, unless Buyer gives Seller thirty
(30) days' written notice of transfer and the transferee agrees in writing to be
bound by this Article 9. This provision does not apply to the transfer of a
security interest in the Property or Personalty to a financial institution.
Seller may record this restriction only in the real property records pertaining
to the Properties.

          9.8. No Other Remedy. Buyer acknowledges that the Properties were used
by present or prior owners or operators for the storage, manufacture and sale of
petroleum and other products. This use and the possible Release of materials,
including gasoline or other petroleum products, may have caused physical and
other changes in the Properties, including the deposit of solid and hazardous
wastes and Hazardous Substances. Buyer acknowledges having the opportunity to
conduct the Inspection to ascertain the physical characteristics and existing
conditions of the Properties and Personalty. Buyer's sole remedy for
Environmental Liability (including, but not limited to, Environmental Liability
for subsurface and surface conditions, contamination, and solid and hazardous
wastes, Hazardous Substances, and petroleum products or their constituents on,
under or migrating from the Properties) will be as set forth in this Article 9
or under Section 8.6 for a breach of warranty in Section 9.2 and these remedies
are in lieu of any statutory rights that Buyer may have under any Environmental
Laws or common law causes of action.

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<PAGE>   29

          9.9. Survival. The provisions of Article 9 survive the Closing and do
not expire, except that Seller's representations and warranties in Section 9.2
expire eighteen (18) months after the Closing Date.

          9.10. Coal Tar Plant. Any other provision of this Agreement
notwithstanding, based on Buyer's Inspection, Buyer may, by written notice to
Seller delivered at least 30 days prior to the Closing Date, delete the Coal Tar
Plant (as defined in Schedule 9.3.1.) from the Property to be purchased pursuant
to this Agreement and all references to the Coal Tar Plant will be deemed to be
deleted from this Agreement. Deletion of the Coal Tar Plant will not change the
Purchase Price. If Buyer deletes the Coal Tar Plant, Buyer will grant Seller,
its agents and owners or operators of the Coal Tar Plant site an easement for
access reasonably necessary for the Cleanup or use of Coal Tar Plant site.
Seller hereby grants Buyer a right of first refusal for the Coal Tar Plant for a
twenty-five (25) year period, which right will expire unless Buyer agrees to
meet all terms and conditions of a bona fide offer for the Coal Tar Plant within
30 days after Seller gives Buyer written notice of the terms and conditions of
such offer.

          9.11 Cooling Tower. Seller will, at its expense, demolish and remove,
within 90 days after the Closing Date, the cooling tower located in the refinery
section of the Corpus Christi terminal, including, but not limited to, solid
waste disposal costs and Cleanup costs associated with the demolition and
removal. Seller will have a right of access to the Corpus Christi terminal for
this purpose. Conduct of the demolition and removal and the right of entry will
be subject to Section 9.6.

     10. INDEMNIFICATION.

          10.1. After the Closing and until the eighteen month anniversary of
the Closing Date or, in the case of the representations and warranties in
Section 14.15, the expiration of the

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<PAGE>   30

applicable statute of limitations ("Survival Period"), Seller will defend,
indemnify and hold Buyer, its Affiliates, successors and assigns and their
respective directors, officers and employees (collectively, the "Buyer
Indemnitees") harmless from and against all demands, actions or causes of
action, assessments, judgments, damages, obligations, liabilities and claims
(collectively, "Claims") of every type and nature whatsoever (including, without
limitation, injury to or death of any person or persons, or damage to or loss of
any property) suffered by Buyer Indemnitees in consequence of such Claims to the
extent arising from or related to:

               (i) any inaccuracy in or breach by Seller of any representation
or warranty of Seller set forth in this Agreement, except Section 9.2 hereof,
remedies for inaccuracies in or breaches of which shall be solely pursuant to
Article 9;

               (ii) the Purchased Assets and based upon events occurring or
conditions existing prior to the Closing Date; provided, however, that this
Section 10.1 shall not apply, and Article 9 shall be the sole remedy, with
respect to Claims arising out of environmental matters; or

               (iii) any noncompliance by Seller with any bulk transfer laws
that may be applicable to the transaction contemplated by this Agreement.

          The term "Affiliates" means with respect to any individual or legal
business entity, any individual, corporation, general or limited partnership,
limited liability company, joint venture, or other entity ("Person") which
directly or indirectly, controls, is controlled by, or is under a common control
with such individual or legal business entity. The term "control" (including the
terms "controlled by" and "under common control with") as used in the preceding
sentence means the power to direct or cause the direction of management and
policies of a Person.

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<PAGE>   31

          Seller's maximum liability under this Article 10 shall not exceed
$5,000,000 ("Seller's Maximum Liability"), provided however that if Buyer seeks
indemnification for any Claims relating to the pipelines under the Houston Ship
Channel (the "Pipeline Claims") Buyer will be entitled to indemnification in an
amount not to exceed $1,000,000, which amount will not reduce Seller's Maximum
Liability. Any amounts paid to Buyer in excess of $1,000,000 with regard to the
Pipeline Claims will reduce Seller's Maximum Liability dollar for dollar.

          10.2. After the Closing, Buyer shall indemnify, defend and hold
Seller, its Affiliates, successors and assigns and their respective directors,
officers and employees (collectively, the "Seller Indemnitees") harmless from
and against any and all Claims of every type and nature whatsoever (including,
without limitation, injury to or death of any person or persons, or damage to or
loss of any property) suffered by Seller Indemnitees in consequence of such
Claims to the extent arising from or related to:

               (a) any inaccuracy in or breach by Buyer of any representation or
warranty of Buyer set forth in this Agreement; or

               (b) the Purchased Assets and relating to the period of time from
and after the Closing Date.

          10.3. The indemnities in Sections 10.1 and 10.2 do not apply to any
claim under Environmental Law, or for Environmental Liabilities, Cleanup or
Environmental Torts, as to which Seller's and Buyer's remedies are limited to
the remedies provided in Article 9.

          10.4. The Parties hereto agree to waive any rights to special,
incidental, consequential, indirect or punitive damages, including, without
limitation, loss of profits, resulting from any Claim.

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<PAGE>   32

          10.5. Buyer and Seller shall cooperate fully with one another in
connection with any matters covered by the indemnity obligations under this
Agreement. Such cooperation shall include, without limitation, providing the
other Party with reasonable access to files, properties and personnel and
advance notification of any meeting or communications with any third parties
which could reasonably be expected to affect the rights or obligations of the
other Party under this Agreement.

          10.6. All Environmental Claims under Article 9 and/or Claims under
Article 10 shall be asserted and resolved pursuant to this Section 10.6. Any
person claiming indemnification hereunder is hereinafter referred to as the
"Indemnified Party" and any person against whom such claims are asserted
hereunder is hereinafter referred to as the "Indemnifying Party".

               (i) Third Party Claims. In the event that any Claims are asserted
against or sought to be collected from an Indemnified Party by a third party,
the Indemnified Party shall with reasonable promptness provide to the
Indemnifying Party a Claim Notice. The Indemnifying Party shall not be obligated
to indemnify the Indemnified Party with respect to any such Claims if the
Indemnified Party fails to notify the Indemnifying Party thereof in accordance
with the provisions of this Agreement in reasonably sufficient time so that the
Indemnifying Party's ability to defend against the Claims is not prejudiced. The
Indemnifying Party shall have 30 days from the personal delivery or receipt of
the Claim Notice ("Notice Period") to notify the Indemnified Party (a) whether
or not it disputes the liability of the Indemnifying Party to the Indemnified
Party hereunder with respect to such Claims and/or (b) whether or not it
desires, at the sole cost and expense of the Indemnifying Party, to defend the
Indemnified Party against such Claims. In the event that the Indemnifying Party
notifies the Indemnified Party within the

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                                       32
<PAGE>   33

Notice Period that it desires to defend the Indemnified Party against such
Claims, the Indemnifying Party shall have the right to defend all appropriate
proceedings, and with counsel of its own choosing, which proceedings shall be
promptly settled or prosecuted by them to a final conclusion. If the Indemnified
Party desires to participate in, but not control, any such defense or settlement
it may do so at its sole cost and expense. If requested by the Indemnifying
Party, the Indemnified Party agrees to cooperate with the Indemnifying Party and
its counsel in contesting any Claims that the Indemnifying Party elects to
contest or, if appropriate and related to the claim in question, in making any
counterclaim against the person asserting the third party Claims, or any
cross-complaint against any person. No claim may be settled or otherwise
compromised in a manner which imposes any obligation or liability on the
Indemnified Party without the prior written consent of the Indemnified Party.

               (ii) Other Claims. A claim for indemnification for any matter not
involving a third party claim may be asserted by delivery of a Claim Notice to
the party from whom indemnification is sought. The Indemnified Party shall with
reasonable promptness provide to the Indemnifying Party such Claim Notice. The
Indemnifying Party shall not be obligated to indemnify the Indemnified Party
with respect to any such claims if the Indemnified Party fails to provide notice
to the Indemnifying Party thereof in accordance with the provisions of this
Agreement in reasonably sufficient time so that the Indemnifying Party's ability
to address the subject of the indemnification is not prejudiced.

          10.8. Except as otherwise provided herein, as between the Buyer and
Seller, the rights and obligations set forth in this Article 10 will be the
exclusive rights and obligations with respect to this Agreement, the events
giving rise to this Agreement, and the transactions provided for herein or
contemplated hereby or thereby, it being understood and agreed between Seller
and

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<PAGE>   34

Buyer that all other rights and obligations between Seller on the one hand and
the Buyer on the other hand shall be governed by this Agreement.

     11. CONDEMNATION. If, prior to the Closing, a condemnation proceeding is
commenced affecting the Properties or any of the Properties is taken by eminent
domain and such proceeding or taking would have a material adverse effect on the
Purchased Assets taken as a whole or on the business conducted with the
Purchased Assets, either party may, by written notice to the other, elect to
cancel this Agreement prior to the Closing Date. If either party so elects, both
parties will be relieved of any further liability hereunder except as provided
in Article 12. Unless this Agreement is so canceled, it will remain in effect
and Seller, upon Closing, will assign to Buyer all Seller's right, title and
interest to any awards that may be made for the taking. If, prior to the
Closing, any of the Properties is taken by eminent domain such that neither
party has the right to cancel this Agreement, Seller, upon Closing, will assign
to Buyer all Seller's right, title and interest to any awards that may be made
for the taking.

     12. BROKERS.

          12.1. Seller will pay all fees and commissions, if any, charged by any
brokers or agents (including Goldman, Sachs & Co.), for or on behalf of Seller,
in connection with this Agreement, and will defend and indemnify Buyer from all
fees, commissions, suits and related expenses arising from claims of all real
estate brokers or agents claiming through Seller.

          12.2. Buyer will pay all fees and commissions, if any, charged by any
brokers or agents, for or on behalf of Buyer, in connection with this Agreement,
and will defend and indemnify Seller from all fees, commissions, suits and
related expenses arising from claims of all real estate brokers or agents
claiming through Buyer.

          12.3. The provisions of this Section survive the Closing indefinitely.

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<PAGE>   35

     13. GOVERNMENTAL APPROVALS. If this transaction is subject to the approval
of the United States Department of Justice, the Federal Trade Commission or if
the approval of any other governmental agency is necessary in order to convey
title to the Properties, including expiration of the Hart-Scott-Rodino Act
waiting period, Seller and Buyer will make such filings as are required for this
transaction by the appropriate governmental agency as soon as reasonably
possible following the date of this Agreement. Seller and Buyer will use their
best efforts to provide any required information, and each will diligently
pursue the necessary approvals. The Closing Date will be extended to the extent
necessary; however, if the transaction is not approved consistent with the terms
of this Agreement on or before October 1, 1999, either party may terminate this
Agreement.

     14. SELLER'S WARRANTIES.

          14.1. Seller is a corporation validly existing and in good standing
under the laws of the State of Delaware, is duly qualified to transact business
and is in good standing under the laws of the States of Delaware, Louisiana and
Texas and has the corporate power and authority to make and perform this
Agreement and to consummate the transaction contemplated herein. The execution,
delivery and performance by Seller of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized and approved by all
necessary corporate action. This Agreement is a legal, valid and binding
obligation of Seller enforceable against it in accordance with its terms, except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting creditors' rights generally and by general
equity principles.

          14.2. Seller has, and upon consummation of the transactions
contemplated under this Agreement at the Closing, Buyer will have, good and
marketable title to the Purchased

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                                       35
<PAGE>   36

Assets free and clear of all liens, charges, mortgages, security interests,
pledges or other encumbrances of any nature whatsoever, except for (a) any
claims or encumbrances that do not arise by, through or under Seller, (b) any
which do not materially adversely affect marketability or the current use of the
Properties or (c) any lien for taxes that are not yet due and payable.

          14.3. Seller has delivered to Buyer, true and complete copies of all
material contracts, agreements and instruments or other legally enforceable
obligations affecting or related to the Purchased Assets and all amendments or
modifications thereof. There are no material Contracts that affect or may affect
the ownership, use, operations, management or maintenance of the Properties
and/or Personalty, except for the Contracts set forth in Schedule 14.3(a). Each
of the Contracts is valid, binding and in effect, and neither Seller, nor to the
Best of Seller's Knowledge, any other party thereto, is in default under any
Contract. Except as set forth on Schedule 14.3(b), each material Contract maybe
assigned to Buyer without the consent of a third party. It is understood that
for purposes of this Section 14.3 only, "material" shall be defined as having a
term of more than one year or a value in excess of $100,000.

          14.4. The Properties and Personalty, taken as a whole, are in good
operating condition and repair, and none of such Properties and/or Personalty is
in need of maintenance or repairs except ordinary, routine maintenance and
repairs that are not material in nature or cost.

          14.5. The Purchased Assets (including the Contracts and Permits),
taken as a whole, will permit in their condition as of the Closing Date,
operation of the Purchased Assets by Buyer immediately after the Closing in a
manner consistent with Seller's past practices.

          14.6. Except as set forth in Schedule 14.6, there are no material
claims, actions or proceedings pending or, to the Best of Seller's Knowledge,
threatened against Seller relating to the Purchased Assets to be transferred to
Buyer.

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<PAGE>   37

          14.7. The execution, delivery and performance of this Agreement by
Seller or the consummation of the transaction contemplated herein will not
violate any law, rule, regulation, order, or decree of any Governmental
Authority to which Seller is subject, nor result in a material breach of any
contract to which Seller is bound and to which the Properties, Personalty or
Petroleum Inventory is subject, nor result in a violation or breach by Seller of
any judgment, order, writ, injunction or decree issued against or imposed upon
Seller, nor result in a material breach or default under (or an event that, with
giving of notice or passage of time or both, would constitute a breach of or
default under), or termination of, or accelerate the performance required by, or
result in the creation or imposition of any material security interest, lien,
charge or other encumbrance upon the Purchased Assets under, any contract,
instrument or agreement to which Seller is a party or by which Seller or any of
its assets are bound.

          14.8. Schedule 14.8(a) sets forth an accurate and complete list of all
material permits, licenses and governmental approvals necessary to operate the
Purchased Assets as is (the "Material Permits") (other than Permits under
Environmental Law). Except as specified in Schedule 14.8(b), (i) all Material
Permits (other than Permits under Environmental Law) relating to the Purchased
Assets as currently operated are in effect and (ii) Seller has, to the extent
required, made all filings necessary to request the timely renewal or issuance
of all Material Permits necessary prior to the Closing for Seller to own and
operate the Purchased Assets as currently operated.

          14.9. Seller will execute all documents reasonably required to effect
the transfer of the Properties, Personalty and Petroleum Inventory, whether at
the Closing or after.

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<PAGE>   38

          14.10. Governmental/Regulatory Notices/Judicial Actions.

               (a) there are no material violations of or instances of
noncompliance with any laws, rules, regulations, ordinances, orders, judgments
and decrees applicable to Seller's ownership, use, and operation of the
Purchased Assets or the condition thereof;

               (b) there are no judgments, orders, writs or injunctions of any
Governmental Authority presently in effect against Seller with respect to its
interest in the Purchased Assets; and

               (c) there are no pending condemnation or similar proceedings
affecting the Purchased Assets or any portion thereof, nor to the Best of
Seller's Knowledge, is any such action presently threatened against all or any
portion of the Purchased Assets.

          14.11. Taxes. All returns required to be filed pursuant to federal,
state or local laws with respect to the ownership and operation of the Purchased
Assets have been or will be timely filed, and all taxes (other than income
taxes) imposed or assessed, whether federal, state or local, on the Purchased
Assets which would result in a lien attaching to the Purchased Assets if not
paid, have been or will be timely paid.

          14.12. Foreign Person. Seller is not a "foreign person" as defined in
Section 1445 of the Code and the regulations promulgated thereunder.

          14.13. Preferential Purchase Rights. There are no preferential
purchase rights, options, or other rights held by any person or entity not a
party to this Agreement to purchase or acquire any interest in the Purchased
Assets, in whole or in part, as a result of the transactions contemplated by
this Agreement.

          14.14. Records. All records and documents relating to the operation
and maintenance of the Purchased Assets furnished to Buyer were prepared and
maintained in the

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<PAGE>   39

ordinary course of business, and, to the Best of Seller's Knowledge, are
complete and accurate in all material respects.

          14.15. Seller represents and warrants that no sales and use tax
applies to this agreement because of the exemptions provided under Texas and
Louisiana laws for occasional sales. Seller shall pay all excise (other than
sales and use taxes) or personal property transfer taxes, if applicable, it
being understood that Buyer shall provide any exemption certificates or other
documentation requested by the Seller to establish the nonapplicability of these
taxes.

          14.16. The representations and warranties in this Article 14 do not
apply to facts, events, circumstances or conditions which constitute
Environmental Liabilities. Buyer's sole remedies for Environmental Liabilities
are set forth in Article 9.

          14.17. The warranties in Article 14 will survive the Closing Date for
18 months except for those contained in Section 14.15 which shall expire on the
expiration of the applicable statute of limitations.

     15. BUYER'S WARRANTIES.

          15.1. Buyer is a corporation validly existing and in good standing
under the laws of the State of Delaware, and has the corporate power and
authority to make and perform this Agreement and to consummate the transaction
contemplated herein. The execution, delivery and performance by Buyer of this
Agreement and the consummation of the transactions contemplated hereby have been
duly authorized and approved by all necessary corporate action. This Agreement
is a legal, valid and binding obligation of Buyer enforceable against it in
accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting
creditors' rights generally and by general equity principles.

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                                       39
<PAGE>   40

          15.2. There are no claims, actions, or proceedings pending or
threatened against Buyer relating to the transfer of assets as contemplated
herein. Buyer has no knowledge of any facts that would prohibit Buyer from
acquiring the Properties, Personalty or Petroleum Inventory of Seller.

          15.3. The execution, delivery and performance of this Agreement by
Buyer or the consummation of the transaction contemplated herein will not
violate any law, rule, regulation, order or decree to which the Buyer is
subject, nor result in a breach of any contract to which Buyer is bound, nor
result in a violation or breach by Buyer of any judgment, order, writ,
injunction or decree issued against or imposed upon Buyer.

          15.4. Buyer will execute all documents reasonably required to effect
the transfer of the Properties, Personalty and Petroleum Inventory, whether at
the Closing or thereafter,

     16. BUYER'S CONDITIONS TO CLOSE. The obligations of Buyer to effect the
transactions contemplated by this Agreement on the Closing Date shall be subject
to the fulfillment, prior to or at the Closing, of each of the conditions set
forth in this Article 16 (unless waived, in whole or in part, in writing by
Buyer).

          16.1. Representation and Warranties True. The representations and
warranties made by Seller as set forth in Articles 9 and 14 of this Agreement
shall have been true and correct when made and shall be true and correct in all
material respects (except for those representatives and warranties qualified by
materiality, which shall be true and correct) as of the Closing Date as though
such representations and warranties were made at and as of such date without
giving effect to any update to Seller's disclosure schedules except as otherwise
provided in Section 8.6.2 herein.

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<PAGE>   41

          16.2. Performance of Obligations. Seller shall have performed,
observed and complied with, in all material respects, all agreements,
obligations, covenants and conditions required by this Agreement to be performed
or complied with by it on or prior to the Closing Date.

          16.3. Litigation. No action or proceeding shall be pending or, to
Seller's knowledge, threatened against Seller or Buyer in any court of law or by
any administrative or governmental agency on the Closing Date, wherein an
unfavorable judgment, decree or order could prevent, make unlawful or materially
affect the consummation of the transactions contemplated by this Agreement.

          16.4. Absence of Certain Changes. There shall not have occurred any
act or omission constituting a material violation of any Environmental Law, rule
or regulation of any Governmental Authority between the date of this Agreement
and the Closing Date nor any damage or destruction in the nature of a casualty
loss, whether covered by insurance or not, which in either case could materially
adversely affect the normal utilization and operations of the Purchased Assets.

          16.5. Documents and Deliveries. All instruments and documents required
on Seller's part to effectuate this Agreement and the transactions contemplated
hereby shall be delivered to Buyer and shall be in form and substance consistent
with the requirements herein.

          16.6. Title Insurance Policy. The Title Company shall have committed
to issue to Buyer at Closing, an extended coverage ALTA owner's policy of title
insurance upon payment by Buyer of its regularly scheduled premium, insuring fee
title to the real property associated with the Purchased Assets in Buyer in the
amount equal to the Purchase Price, as set

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<PAGE>   42

forth in Section 2, subject only to the printed provisions of such policy, and
such title matters accepted by Buyer pursuant to Section 8.5 or Schedule 14.2.

          16.7. Board Approval. Buyer's Board of Directors and the Board of
Directors of The Williams Companies, Inc. shall have approved the execution,
delivery and performance of this Agreement.

     17. SELLER'S CONDITIONS TO CLOSE. The obligations of Seller to effect the
transactions contemplated by this Agreement on the Closing Date shall be subject
to the fulfillment, prior to or at the Closing, of each of the conditions set
forth in this Article 17 (unless waived, in whole or in part, in writing by
Seller).

          17.1. Representation and Warranties True. If any of Buyer's warranties
in Article 15 is not true in any material respect as of the Closing or if Buyer
is in material breach of this Agreement as of Closing, the provisions of Section
8.6 will apply.

          17.2. Performance of Obligations. Buyer shall have performed, observed
and complied with, in all material respects, all agreements, obligations,
covenants and conditions required by this Agreement to be performed or complied
with by it on or prior to the Closing Date, including, but not limited to,
payment to Seller of the Purchase Price.

          17.3. Litigation. No action or proceeding shall be pending or, to
Buyer's knowledge, threatened against Seller or Buyer in any court of law or by
any administrative or governmental agency on the Closing Date, wherein an
unfavorable judgment, decree or order could prevent, make unlawful or materially
affect the consummation of the transactions contemplated by this Agreement.

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<PAGE>   43

          17.4. Documents and Deliveries. All instruments and documents required
on Buyer's part to effectuate this Agreement and the transactions contemplated
hereby shall be delivered to Seller and shall be in form and substance
consistent with the requirements herein.

          17.5. Board Approval. Seller's Board of Director's shall have approved
the execution, delivery and performance of this Agreement.

     18. CONFIDENTIALITY. This Agreement will be treated by the parties and
their agents, employees and contractors, as confidential. Any announcements of
the parties relating to this Agreement prior to the Closing must have the
written approval of the parties.

     19. ASSIGNMENT. Buyer may not assign this Agreement except with the written
consent of Seller; provided, however, that the preceding requirement for consent
shall not apply to Buyer if Buyer assigns this Agreement, in whole or in part,
to one or more of its Affiliates. In the later case, Buyer shall give Seller
prompt notice of such assignment.

     20. GOVERNING LAW; WAIVER OF JURY TRIAL. THIS AGREEMENT, AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE CONSTRUED, INTERPRETED, ENFORCED,
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CHOICE OF
LAW PRINCIPLES THEREOF. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     21. NOTICES. All notices will be in writing and delivered by certified
mail, return receipt requested, or by recognized overnight carrier, to Seller at
the address given above, c/o F. Lamar Clark, Senior Vice President, Terminal
Operations Department, with a copy to

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                                       43
<PAGE>   44

Douglas E. Friedman, Vice President and Associate General Counsel, Law
Department, at the same address, and to Buyer at the address set forth above c/o
Robert S. Purgason, Vice President, Hydrocarbon Development.

     22. ENTIRE AGREEMENT. This Agreement merges and supersedes all prior
negotiations, representations and agreements (other than the confidentiality
agreement between the parties dated February 23, 1999 and constitutes the entire
agreement between Seller and Buyer concerning the conveyance of the Purchased
Assets and the consideration therefor. The terms of this Agreement cannot be
changed or terminated orally.

     23. BINDING EFFECT. Except as herein otherwise provided, this Agreement
will be binding on and inure to the benefit of the successors and permitted
assigns of the parties.

     24. EMPLOYEES.

          24.1. Buyer will consider for employment all employees of Seller
employed at the Properties in accordance with Buyer's standard employment
policies and practices; provided, however, that Buyer is not obligated under
this Agreement to employ any employees of Seller. Notwithstanding anything in
this Agreement to the contrary, Buyer agrees that it will not speak to any
employees of Seller about future employment by Buyer until after May 20, 1999.

          24.2. Except for any employee(s) terminated for reasons unrelated to
this transaction, Seller will continue the employment of all of Seller's other
current employees at the Properties until the Closing Date. Buyer will use its
reasonable commercial efforts to avoid the loss of employment by sufficient
numbers of Seller's current employees at any single site to incur liability
under the Workers Adjustment and Retraining Notification ("WARN") Act, or under
any other plant closing or mass layoff statute or law, and Buyer will indemnify
Seller for all fees and costs associated with defense against and for any
damages or other relief awarded

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                                       44
<PAGE>   45

under, any claim(s) under WARN or other similar statute or law. Fifteen days
prior to Closing, Buyer will notify Seller in writing of the employees Buyer
will make offers to at Closing. Any employees who have not received an offer
from Buyer or do not accept an offer from Buyer will remain the employees of
Seller or be terminated by Seller and Seller will be responsible for all
severance and other costs associated with such employees.

     25. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument.

     26. HEADINGS. The article and section headings contained herein are for
convenience only and shall not in any way affect the meaning, construction or
interpretation of this Agreement.

     27. PARTIAL INVALIDITY. In the event any provision or portion of a
provision hereof is held to be invalid, void, or unenforceable, such holding
shall not affect the remaining portion of that provision or any other provision
hereof.

     28. INTERPRETATION. This Agreement is the product of negotiations during
which all parties have had an opportunity to make alterations, changes, and
deletions to the text and have, in fact, made such alterations, deletions, and
additions. This Agreement should be read as if drafted equally by all concerned
with no presumption or penalty attached to any party for its particular role in
producing any preliminary of final draft of this Agreement.

     29. EXPENSES. Except as otherwise provided herein, each party hereto shall
bear its own expenses incurred in connection with the preparation, execution and
performance of this Agreement and the transactions contemplated herein.

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                                       45
<PAGE>   46

     30. FURTHER ASSURANCES. Buyer and Seller shall upon request execute and
deliver or cause to be executed and delivered all documents, conveyances, deeds,
assignments, or other instruments or further assurance, and shall do or cause to
be done any acts or things as may be reasonably necessary or advisable to
implement and give full effect to the provisions of this Agreement.

     31. SECTION 1060 REPORTING REQUIREMENTS. Seller and Buyer acknowledge that
this transaction is not subject to the reporting requirements of Section 1060 of
the Code and that IRS Form 8594, Asset Acquisition Statement, will not be filed
for this transaction. Each party hereto agrees to timely inform the other if it
subsequently determines that such reporting is required.

     32. WAIVER. Except as otherwise provided herein, neither the failure nor
any delay on the part of any party in exercising any right, power or remedy
hereunder shall operate as a waiver thereof, or of any other right, power or
remedy; nor shall any single or partial exercise of any right, power or remedy
preclude any further or other exercise thereof, or the exercise of any other
right, power or remedy. No waiver of any of the provisions of this Agreement
shall be valid unless it is in writing and signed by the party against whom it
is sought to be enforced.

     33. PARTIES IN INTEREST. Except as otherwise provided herein, nothing in
this Agreement, expressed or implied, is intended to confer upon any third
person any rights or remedies under or by reason of this Agreement.

     34. DISPUTE RESOLUTION.

          34.1. Covered Disputes. Any claims, action or disputes arising out of
or relating to this Agreement, including without limitation the meaning of its
provisions, or the proper performance of any of its terms, its breach,
termination or invalidity ("Dispute") will be resolved

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                                       46
<PAGE>   47

in accordance with the procedures specified in this Section, which will be the
sole and exclusive procedure for the resolution of any such Dispute, except that
any Party, without prejudice to the following procedures, may file a complaint
to seek preliminary injunctive or other provisional judicial relief, if in its
sole judgment, that action is necessary to avoid irreparable damage or to
preserve the status quo. Despite that action, the Parties will continue to
participate in good faith in the procedures specified in this Article.

          34.2. Arbitration. Any Party wishing to initiate the dispute
resolution procedures set forth in this Article with respect to a Dispute not
resolved in the ordinary course of business must give written notice of the
Dispute to the other Party (the "Arbitration Notice"). Any arbitration hereunder
shall be governed by the Federal Arbitration Act, 9 U.S.C. Section 1 et seq., as
amended, to the exclusion of any other arbitration acts, statutes, or rules of
any other jurisdiction, state or federal.

          34.3. Arbitration Procedure. Any arbitration hereunder shall be
conducted in accordance with the then current CPR Rules for Non-Administered
Arbitration, except to the extent terms expressly set forth in this Article are
in conflict with or supplement such Rules, by three independent and impartial
arbitrators, of whom each Party to a Dispute shall appoint one, and the two so
appointed by the Parties shall appoint the third arbitrator. The Arbitration
Notice shall name the noticing Party's arbitrator, and shall contain a statement
of the issue(s) presented for arbitration. Within fifteen (15) Days of receipt
of an Arbitration Notice, the other Party shall name its arbitrator by written
notice to the other and may designate any additional issue(s) for arbitration.
The two named arbitrators shall select the third arbitrator within fifteen (15)
Days after the date on which the second arbitrator was named. Should the two
arbitrators fail to agree on the selection of the third arbitrator, either Party
shall be entitled to request CPR to select the

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                                       47
<PAGE>   48

third arbitrator. Should either Party fail and/or refuse to name its arbitrator
within the required fifteen (15) Day period, the other Party shall be entitled
to request CPR to select the arbitrator for such Party. All arbitrators shall be
qualified by education or experience within the refined products portion of the
energy industry to decide the issues presented for arbitration. No arbitrator
shall be: a current or former director, officer, or employee of either Party or
its Affiliates; an attorney (or member of a law firm) who has rendered legal
services to either Party or its Affiliates within the preceding three years; or
an owner of any of the common stock of either Party, or its Affiliates.

          34.4. Arbitration Hearing. The three arbitrators shall commence the
arbitration proceedings within twenty-five (25) Days following the appointment
of the third arbitrator. The arbitration proceedings shall be held at a mutually
acceptable site and if the Parties are unable to agree on a site, the
arbitrators shall select the site. The arbitrators shall have the authority to
establish rules and procedures governing the arbitration proceedings, including,
without limitation, rules concerning discovery. Each Party shall have the
opportunity to present its evidence at the hearing. The arbitrators may call for
the submission of pre-hearing statements of position and legal authority, but no
post-hearing briefs shall be submitted. The arbitration panel shall only have
authority to award compensatory damages alone and shall not have the authority
to award incidental, consequential, special, punitive or exemplary damages. Each
Party shall submit to the arbitration panel a final offer of its proposed
resolution of the Dispute. The arbitration panel shall be charged to select from
the two proposals the one which the panel finds to be the most reasonable and
consistent with the terms and conditions of this Agreement, and the arbitration
panel shall not average the Parties' proposals or otherwise craft its own
remedy. All evidence submitted in an arbitration proceeding, transcripts of such
proceedings, and all

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                                       48
<PAGE>   49

documents submitted by the Parties in an arbitration proceeding shall be kept
confidential and shall not be disclosed to any third party by either Party
hereto.

          34.5. Arbitration Decision and Costs. The decision of the arbitrators
or a majority of them, shall be in writing and shall be final and binding upon
the Parties as to the issue(s) submitted. The cost of the hearing shall be
shared equally by the Parties, and each Party shall be responsible for its own
expenses and those of its counsel or other representatives. Each Party hereby
irrevocably waives, to the fullest extent permitted by law, any objection it may
have to the arbitrability of any such Disputes, controversies or claims and
further agrees that a final determination in any such arbitration proceeding
shall be conclusive and binding upon each Party.

          34.6. Enforcement of Award. Judgment upon any award rendered by the
arbitrators may be entered in any court having jurisdiction. The prevailing
Party shall be entitled to reasonable attorneys' fees in any contested court
proceeding brought to enforce or collect any award of judgment rendered by the
arbitrators.

          34.7. Tolling and Performance. Except as otherwise provided in this
Article 34, all applicable statutes of limitation and defenses based upon the
passage of time and all contractual limitation periods specified in this
Agreement, if any, will be tolled while the procedures specified in this Article
34 are pending. The Parties will take all actions to effectuate the tolling of
any applicable statute of limitation or contractual limitation periods. All
deadlines specified herein may be extended by mutual written agreement of the
Parties or, if an Arbitration Notice has been sent regarding the Dispute, by
written order of a majority of the arbitrators. Each Party is required to
continue to perform its obligations under this Agreement pending final
resolution of any Dispute, unless to do so would be impossible or impracticable
under the

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                                       49
<PAGE>   50

circumstances. Notwithstanding the foregoing, the statute of limitations of the
State of New York applicable to the commencement of a lawsuit will apply to the
commencement of an arbitration under this Agreement, except that no defenses
will be available based upon the passage of time during any negotiation or
mediation called for by the preceding Sections of this Article.

     35. FUTURE REVENUE.

          35.1. Within 30 days of the end of Fiscal Year 1999, Buyer shall
submit to Seller a notice (the "Revenue Notice") setting forth the 1999 Total
Revenue. If the 1999 Total Revenue is less than $44.1 million, the Revenue
Notice shall also set forth the shortfall (the "1999 Shortfall") and, with
reasonable specificity, the reasons for the decrease in revenue and the dollar
amount associated with each such reason. Subject to the provisions of Section
35.2, within 30 days of receipt of the Revenue Notice, Seller will pay to Buyer
the following amount of any 1999 Shortfall ("Seller's Payment Obligation"):

               (a) the amount of the 1999 Shortfall resulting solely from a
reduction in the revenue associated with the business of Equistar and its
Affiliates ("Equistar") at the Purchased Assets, it being understood that (i)
for purposes of determining Equistar's Affiliates, it shall be only those
Affiliates as of December 31, 1998 and (ii) for purposes of calculating
Equistar's calendar year 1998 revenues, only those contracts in effect during
December 1998 shall be used; plus

               (b) the amount, if any, by which the 1999 Shortfall exceeds $4.4
million, provided that in no event shall Seller's Payment Obligation under this
Article 35 exceed $4.4 million and, provided further that Seller will not have
any obligation to pay Buyer any amount of the 1999 Shortfall that results from
(i) Buyer's failure to use its reasonable

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                                       50
<PAGE>   51

commercial efforts to enter into contracts with customers on reasonable
commercial terms, (ii) Buyer's failure to offer contracts to Equistar on terms
and conditions no less favorable to Equistar than Seller's most recent contracts
with Equistar, having due regard to changes in market conditions, (iii) Buyer's
implementation of API 653 or other non-routine maintenance, repair or
construction activities, or (iv) acts of God, war, acts of war, revolution,
civil commotion, riots, fire, explosion, labor dispute, breakdown of equipment
or facilities, casualty or accident, earthquake, epidemic, flood, cyclone,
tornado, hurricane, contingencies interfering with production or with customary
means of transportation of raw materials or products, or by reason of any law,
order, proclamation, regulation ordinance, demand, requisition or requirement or
any other act of any governmental authority, local state or federal, including
court orders, judgments or decrees or any other cause similar to those
enumerated above.

          35.2. If Seller disputes any items on the Revenue Notice, Seller (i)
will provide Buyer with a written notice within 10 business days of receipt of
the Revenue Notice, which notice will set forth, with reasonable specificity,
the items in dispute and (ii) will have the right to audit Buyer's books and
records as they related to the Purchased Assets. If the parties are unable to
reach agreement on the disputed items within 60 days, the dispute will be
subject to arbitration as set forth in Article 34.

          35.3. As used in this Article 35 the following terms have the
following meaning:

          "Fiscal Year 1999" means the 12 month period beginning on the Closing
Date and ending one day prior to the one year anniversary of the Closing Date.

          "1999 Total Revenue" means revenues for Fiscal Year 1999 relating to
the Purchased Assets determined consistent with Seller's past practice.

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                                       51
<PAGE>   52

          IN WITNESS WHEREOF, the parties have caused these presents to be
executed and delivered as of the day and year first above written.

                                       SELLER:

                                       AMERADA HESS CORPORATION

                                       By:          /s/  John B. Hess
                                              ----------------------------------
                                       Name:        John B. Hess
                                       Title:       Chairman of the Board

                                       BUYER:

                                       WILLIAMS ENERGY VENTURES, INC.

                                       By:          /s/ Robert S. Purgason
                                              ----------------------------------
                                       Name:        Robert S. Purgason
                                       Title:       Attorney in Fact

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                                       52
<PAGE>   53

                  AMENDMENT NO. 1 TO SALE OF ASSETS AGREEMENT

         Amendment No. 1 dated as of July 29, 1999 (this "Amendment") to the
Sale of Assets Agreement (as defined below) between Amerada Hess Corporation, a
Delaware corporation ("Seller") and Williams Terminals Holdings, L.L.C., a
Delaware limited liability company ("Buyer").

                                  WITNESSETH:

         WHEREAS, Williams Energy Ventures, Inc. ("WEV") and Seller have
entered into a Sale of Assets Agreement dated May 10, 1999 (the "Agreement"),
which agreement was assigned by WEV to Buyer on July 15, 1999; and

         WHEREAS, Buyer and Seller desire to amend the Agreement.

         NOW, THEREFORE, in consideration of the premises, and intending to be
legally bound by this Amendment, the Buyer and Seller hereby agree as follows:

         1.       Definition. All capitalized terms not defined herein shall
have the respective meanings assigned to such terms in the Agreement.

         2.       Amendments. Effective as of the date hereof, the Agreement is
hereby amended as follows:

                  a)       A new Section 9.12 shall be added as follows:

                  "9.12    Vapor Recovery Unit.

                           9.12.1. At its expense, Seller will take all actions
         (including, but not limited to, installation of additional emissions
         control equipment) necessary for the Galena Park terminal to be in
         compliance with the MTBE removal efficiency and mass emissions limits
         in Permit #4850 (as in effect at Closing) and any other Environmental
         Laws currently applicable to marine vapor recovery at Galena Park,
         which actions will be completed in a manner which will permit Buyer to
         conduct the business as presently conducted on the Properties. Seller
         anticipates that its obligations under this Section 9.12 will be met
         by September 30, 1999. Seller will use diligent efforts and proceed
         promptly to comply with its obligations under this Section 9.12.
         Seller will have a right of

Amendment No. 1 to Sale of Assets Agreement

<PAGE>   54

         access to the Galena Park terminal for this purpose and Seller will
         use its reasonable commercial efforts to minimize any disruption to
         the operation of the Properties or Personalty located thereon.

                           9.12.2. In addition to the indemnities provided in
         Section 9.4.1 and notwithstanding the provisions of Sections
         9.4.1(iii) or 9.4.2(ii), Seller will defend, indemnify and hold Buyer
         Indemnitees harmless from and against all Environmental Claims and
         resulting Environmental Losses:

                                    (i)     for fines or penalties arising from
         non-compliance with the MTBE removal efficiency and mass emissions
         limits in Permit #4850 (as in effect at Closing) to the extent that
         such violation arises from ownership or operation of the Petrogas
         marine vapor recovery unit after Closing and until Seller complies
         with its obligations under this Section 9.12; provided that Buyer
         operates in a manner after the Closing materially consistent with
         Seller's past practices and operates the Petrogas lean oil marine
         vapor recovery unit in accordance with the manufacturer's
         recommendations and maintains it in good operating condition and
         repair; or

                                    (ii)    arising out of access to Galena
         Park pursuant to this Section 9.12.

                  9.12.3. Title to all equipment installed at Galena Park
         pursuant to this Section 9.12 will be transferred to Buyer. Seller
         hereby grants to Buyer a nonexclusive, royalty-free and perpetual
         license to use any intellectual property necessary for Buyer to use or
         operate the equipment or process installed pursuant to this Section
         9.12 (the "Necessary Intellectual Property") which Seller presently

Amendment No. 1 to Sale of Assets Agreement

                                       2
<PAGE>   55

         owns or otherwise has the right to license. To the best of Seller's
         knowledge, Seller presently owns or has the right to license the
         Necessary Intellectual Property. To the extent that Seller does not
         own or have the right to license the Necessary Intellectual Property,
         Seller will also execute and deliver, or will cause to be executed and
         delivered, to the Buyer any other appropriate agreements, documents or
         other instruments as may be necessary to ensure that the Buyer has a
         nonexclusive license to use any Necessary Intellectual Property
         without cost to Buyer.

                  9.12.4. Provided that Seller has fully performed and
         satisfied its obligations under Section 9.12., Buyer waives any rights
         it may have under Articles 8, 10, 14 or 16 with respect to the marine
         vapor recovery system at Galena Park or the amendment of item 2 of
         Schedule 9.2.1(iv), attached hereto.

                  9.12.5. By no later than September 30, 1999, Seller will
         provide to Buyer detailed, written operating and maintenance
         procedures related to the marine vapor recovery system."

                  b)       Section 9.6.7 is hereby amended and restated in its
                           entirety:

                  "9.6.7. Seller has installed and uses a wastewater treatment
         system and three tanks at Corpus Christi to treat and store recovered
         groundwater and to separate hydrocarbon products from the groundwater.
         Seller has also installed a pipeline to convey wastewater offsite for
         treatment, which Seller plans to place in use, and which may require
         the installation of limited amounts of additional piping on the Corpus
         Christi Property to complete. Seller retains ownership of the
         wastewater system and pipeline and Buyer will own the tanks, which may
         not be

Amendment No. 1 to Sale of Assets Agreement

                                       3
<PAGE>   56

         used by Buyer or Seller for any purpose other than Cleanup until the
         Cleanup is completed. Seller or, at Seller's option, Buyer will
         operate and/or maintain the wastewater system, pipeline and tanks in
         compliance with Environmental Law and will have a right of access
         pursuant to Section 9.6.1 for this purpose. If Seller exercises its
         option to have Buyer maintain or operate, Buyer will maintain and/or
         operate the tanks, pipeline or wastewater system without cost to
         Seller, except that Seller will reimburse Buyer for the normal and
         reasonable incremental costs to operate and maintain the tank.
         pipeline and wastewater system. Maintenance costing in excess of
         $1,000 requires Seller's advance approval, which will not be
         unreasonably withheld. Buyer acknowledges that the No. 6 Fuel Oil
         heater at Corpus Christi is used to comply with Environmental Laws as
         an emissions control device for the waste water system and further
         acknowledges that Seller will be permitted to use such Fuel Oil
         heater. Such use will be without cost to Seller, except that Seller
         will pay to Buyer the incremental cost to operate the Fuel Oil heater
         to the extent that operation of the Fuel Oil heater is not necessary
         for operation of the Corpus Christi Terminal as operated by Buyer."

         3. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed entirely within such State, without regard
to the conflicts of law principles of such State.

         4. Continuation. The parties hereto agree and acknowledge that the
Agreement, as amended by this Amendment, continues in full force and effect
according to its terms.

         5. Counterpart. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute one and the same instrument.

Amendment No. 1 to Sale of Assets Agreement

                                       4
<PAGE>   57

IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to be
duly executed and delivered as of the day and year first above written.

                                       AMERADA HESS CORPORATION

                                       By: /s/ F. Lamar Clark
                                           ------------------------------------

                                       Name: F. Lamar Clark
                                             ----------------------------------

                                       Title: Senior Vice President
                                              ---------------------------------

                                       WILLIAMS TERMINALS
                                       HOLDINGS, L.L.C.

                                       By: /s/ Michael Mears
                                           ------------------------------------
                                       Name:  Michael Mears
                                              ---------------------------------
                                       Title: Vice President
                                              ---------------------------------

Amendment No. 1 to Sale of Assets Agreement

                                       5
<PAGE>   58
                        AMENDMENT NO. 2 TO SALE OF ASSETS AGREEMENT

         Amendment No. 2 dated as of September 30, 1999 (this "Amendment") to
the Sale of Assets Agreement (as defined below) between Amerada Hess
Corporation, a Delaware corporation ("Seller") and Williams Terminals Holdings,
L.L.C. and Williams Pipeline Holdings, L.L.C., each a Delaware limited liability
company (together, "Buyer").

                                   WITNESSETH:

         WHEREAS, Williams Energy Ventures, Inc. ("WEV") and Seller have entered
into a Sale of Assets Agreement dated May 10, 1999, as amended by Amendment No.
1 dated July 29, 1999 (the "Agreement"), which agreement was assigned by WEV to
Buyer on July 15, 1999; and

         WHEREAS, Buyer served Seller with an Arbitration notice by letter dated
July 29, 1999 which asserted claims under Section 8.6 of the Agreement.

         WHEREAS, Buyer and Seller desire to amend the Agreement to reflect
resolution of the claims asserted by Buyer and certain other claims.

         NOW, THEREFORE, in consideration of the premises, and intending to be
legally bound by this Amendment, the Buyer and Seller hereby agree as follows:

         1. Definitions. All capitalized terms not defined herein shall have the
respective meanings assigned to such terms in the Agreement.

         2. Amendments. Effective as of the date hereof, the Agreement is hereby
amended as follows:

            a) New Sections 8.7 and 8.8 shall be added as follows:

               "8.7. Resolution of Pre-Closing Claims.

                     8.7.1. Work to be performed by Seller.

                             8.7.1.1. At its expense, Seller will undertake and
            perform the actions set forth in this Section 8.7.1 (collectively,
            the "Work") to the extent that such actions have not already been
            completed as of the date hereof:

                                   (a) Install poured conduit seals at all
            Properties in areas where such seals are required by applicable laws
            or electrical codes and are not currently present.

                                   (b) Move the two sets of transformer primary
            fused cutouts at Galena Park identified in Item 9 of the letter of
            July 9, 1999 letter (the "July 9 Letter") from Robert Purgason to F.
            Lamar Clark as being below the top of the tank dike wall to above
            the level of the tank dike wall.

Amendment No. 2 to Sale of Assets Agreement
<PAGE>   59

                                   (c) Replace the non-explosion proof pump
            motor in Cargo Pit #2 at Corpus Christi identified in Item 9 of the
            July 9 Letter with an explosion proof pump motor.

                                   (d) Install an approved disconnecting means
            for the transformers and remove the starters in the VRU area at
            Galena Park identified in Item 10 in the July 9 Letter.

                                   (e) Install bonding jumpers at all Properties
            in areas where they are required by applicable laws or electrical
            codes.

                                   (f) Provide working space clearance at the
            480V switchrack near tank 738 at Marrero as identified in Item 13 to
            the July 9 Letter by removing an unneeded pump.

                                   (g) Remove the Butadiene piping from the
            refrigeration platform at Galena Park, including all piping,
            exchangers, tanks and pumps, to the extent necessary to remove the
            flammable components so that the area can be electrically
            declassified.

                                   (h) Obtain and provide information on the
            materials of construction and safe operating ranges of the heat
            exchangers and pressure vessel in the butadiene tank car loading
            area at Galena Park to the extent necessary to comply with the
            requirements for process safety information under 29 CFR
            1910.119(d).

                                   (i) Determine whether Tanks 260, 261, 262,
            263, 264, 307, 308 and 370 at Galena Park, and tank fields 4, 8, 9
            and 10 at Corpus Christi have sufficient dike capacity to comply
            with secondary containment requirements in 40 CFR Part 112.7(e)(ii)
            and 29 CFR 1910.106(b)(2)(vii)(c)(l) and provide Williams with a
            written report of the results of this determination.

                                   (j) Take steps necessary to correct low
            cathodic protection potential readings at Galena Park identified in
            Item 19 of the July 9 Letter for tanks and lines only, so that
            readings meet or exceed recognized protective levels of -.85 volts,
            which may include, but is not limited to, replacing system
            components or increasing rectifier output; provided that Buyer
            provides Seller with results of Buyer's corrosion protection
            information obtained after Closing.

                             8.7.1.2. Seller anticipates that the Work required
            under this Section 8.7.1 will be completed by November 30, 1999, but
            in any event shall be completed by January 31, 2000. Seller will use
            reasonable commercial efforts to complete the Work in a timely
            fashion and proceed promptly to comply with its obligations under
            this Section.

Amendment No. 2 to Sale of Assets Agreement

                                       2
<PAGE>   60

                             8.7.1.3. To facilitate Seller's completion of the
            Work, Buyer will permit Seller, its agents, contractors and
            employees, rent-free access to the Properties to perform the Work
            which Seller is required to conduct under this Section 8.7.1. Seller
            may use up to two (2) offices at Galena Park terminal designated by
            Buyer without cost until November 30, 1999 for Seller personnel,
            agents or contractors performing or supervising the Work

                             8.7.1.4. Buyer will cooperate with Seller so that
            Seller may conduct the Work in compliance with applicable laws and
            regulations and in a cost-effective and efficient manner. Seller
            will use its reasonable commercial efforts to minimize any
            disruption to the operation of the Properties or Personalty located
            thereon resulting from the Work.

                             8.7.1.5. Seller has the right (i) to manage the
            Work and (ii) to conduct the Work using the most cost-effective,
            commercially reasonable, techniques and materials that comply with
            applicable laws and regulations. Seller's right to manage the Work
            is subject to the duty to consult in good faith with Buyer. Buyer
            shall have the right to review in advance any Work that has not
            already been conducted as of the date hereof. All Work will (i) be
            performed in a professional workerlike manner by qualified personnel
            and if required by law, licensed personnel or contractors and (ii)
            comply with applicable laws and regulations.

                             8.7.1.6. If Buyer believes that Seller has not
            fully performed and satisfied its obligations in all material
            respects, Buyer will give Seller written notice of its objections to
            the Work by no later than February 29, 2000. If the parties are
            unable to reach agreement on the disputed items within 60 days, the
            dispute will be subject to arbitration as set forth in Article 34.
            This Section 8.7.1. sets forth Buyer's sole remedy with respect to
            the Work and this remedy is in lieu of any other remedy under the
            Agreement, applicable law or common law causes of action. Provided
            that Seller has fully performed and satisfied its obligations in all
            material respects with respect to an item of Work or if Buyer does
            not give notice of an objection an item of Work in accordance with
            this Section 8.7.1.6., Buyer waives and releases all claims, rights
            or causes of action Buyer may have with respect to such item of
            Work, including, but not limited to, any rights Buyer may have under
            Articles 8, 10, 14 or 16.

                             8.7.1.7. Notwithstanding the waiver and release
            provided by Section 8.7.1.6., Buyer may assert (and Seller may
            contest) a post-Closing claim under Article 10 for breach of any
            applicable warranty in Article 14 (without reference to Section
            14.16), if (i) insufficient spill containment capacity exists with
            respect to Tanks 260, 261, 262, 263, 264, 307, 308 or 370 at Galena
            Park, or tank fields 4, 8, 9 and 10 at Corpus Christi to comply with
            any laws, rules, regulations, ordinances, orders, judgments and
            decrees applicable to such tanks and tankfields; (ii) if the
            information developed pursuant to 8.7.1.1(h) or subsequently
            developed by Buyer indicates that the heat exchanger and pressure
            vessel in the butadiene tank car loading area loading area were
            designed or

Amendment No. 2 to Sale of Assets Agreement

                                       3
<PAGE>   61

            presently in a condition such that they cannot be operated (as
            operated by Seller prior to Closing) in a safe manner as
            contemplated under 29 CFR 1910.119; or (iii) any item of Work does
            not comply with applicable laws or regulations or was not performed
            in a professional workerlike manner. Such claim shall be subject to
            all provisions of Article 10. This Section 8.7.1.7. sets forth
            Buyer's sole remedy with respect to the foregoing items and this
            remedy is in lieu of any other remedy under the Agreement,
            applicable law or common law causes of action, including, but not
            limited to, any other rights Buyer may have under Articles 8, 10, 14
            or 16.

                             8.7.1.8. Title to any equipment installed pursuant
            to this Section 8.7.1. will be transferred to Buyer within 30 days
            after its installation.

                             8.7.1.9. Indemnity

                                    8.7.1.9.1. Subject to the limitation set
            forth in this Section 8.7.1.9., Seller agrees to and does hereby
            indemnify Buyer against and agrees to hold them harmless from and
            against any and all damage, loss, liability and expense (including,
            without limitation, reasonable expenses of investigation and
            reasonable attorneys fees and expenses in connection with any
            action, suit or proceeding) of every type and nature whatsoever
            (including, without limitation, injury to or death of any person or
            persons, or damage to or loss of any property) suffered by Buyer or
            its affiliates in consequence of such damage, loss, liability and
            expense to the extent arising from or related to the negligence or
            willful misconduct of Seller or Seller's employees or contractors in
            the performance of the Work, except to the extent such damage, loss,
            liability and expense arises out of the negligence or willful
            misconduct of Buyer. Buyer's sole remedy for the structural
            soundness, condition, repair, fitness for use or adequacy of the
            Work will be to the extent provided by Section 8.7.1.7(iii) and not
            this Section 8.7.1.9.1.

                                    8.7.1.9.2. Except as provided in Section
            8.7.1.9.1., SELLER MAKES NO WARRANTY OF ANY KIND AND SPECIFICALLY
            MAKES NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
            PURPOSE, AND NONE SHALL BE IMPLIED. ALL WARRANTIES, EXPRESSED OR
            IMPLIED, ARE EXCLUDED.

                                    8.7.1.9.3. IN NO EVENT SHALL SELLER BE
            LIABLE TO BUYER FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR
            PUNITIVE DAMAGES HEREUNDER, OR LOSS OF PROFITS OR DAMAGES FOR
            BUSINESS INTERRUPTION. BUYER HEREBY RELEASES SELLER AND ITS
            OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS, AND COVENANTS NOT TO SUE
            ANY OF THEM FOR, ANY SUCH SPECIAL, INDIRECT, INCIDENTAL,
            CONSEQUENTIAL OR PUNITIVE DAMAGES, OR LOSS OF PROFITS OR BUSINESS
            INTERRUPTION.

Amendment No. 2 to Sale of Assets Agreement

                                       4
<PAGE>   62

                     8.7.2. Reimbursement for Buyer's Work.

                             8.7.2.1. Subject to the limits in this Section
            8.7.2., Seller will reimburse Buyer for 110% of all out of pocket
            costs and expenses payable by Buyer to third parties which are
            incurred after the Closing, and until the third anniversary of the
            Closing Date to perform any of the actions set forth in this Section
            8.7.2. ("Buyer's Work"):

                                   (a) Modification, engineering design, repair
            or replacement of 43 pump motor starter assemblies at the Properties
            identified in the July 9 Letter (36 at Galena Park, 6 at Marrero and
            1 at Corpus Christi, collectively, the "Starters").

                                   (b) Modification, engineering design, repair
            or replacement of platforms used for access to the Starters at
            Galena Park and installation of permanent ladders to the platforms.

                                   (c) Modification, engineering design, repair
            or replacement of disconnecting means to the Starters at Galena
            Park.

                                   (d) Modification, engineering design, repair
            or replacement of the 8" line pipeline under Huntington Bayou near
            the Galena Park facility identified in the July 9 Letter so that the
            pipeline is not exposed or suspended above the bottom of Huntington
            Bayou.

                                   (e) Updating maps of offsite pipeline systems
            associated with Galena Park which were purchased from the Seller.

                                   (f) Repair of the eight (8) shorted pipeline
            casings in offsite pipeline systems associated with Galena Park
            which were purchased from the Seller identified in the letter dated
            July 20, 1999 from Robert Purgason to F. Lamar Clark (the "July 20
            Letter").

                                   (g) Modification, engineering design repair
            or replacement of the tank bottom to Tank 372 at Galena Park.

                             8.7.2.2. Notwithstanding anything to the contrary
            set forth herein or in the Agreement, any amounts paid to Buyer in
            excess of $1,500,000 with regard to the Buyer's Work will reduce
            Seller's Maximum Liability under Article 10 dollar for dollar. In no
            event shall the total of Seller's payments to Buyer under this
            Section 8.7.2 and Article 10 exceed on a cumulative basis
            $6,500,000, plus any amounts for Pipeline Claims for which Seller is
            required to indemnify Buyer under Section 10.1 which do not reduce
            Seller's Maximum Liability under that Section. Seller's obligation
            to reimburse Buyer pursuant to this Section 8.7.2. shall terminate
            in such event.

                             8.7.2.3. Within 30 days after the end of each
            calendar quarter, Buyer shall submit to Seller a notice (a
            "Reimbursement Notice")

Amendment No. 2 to Sale of Assets Agreement

                                       5
<PAGE>   63

            requesting reimbursement for Buyer's Work for which payment has not
            been made to Buyer under this Section 8.7.2. The Reimbursement
            Notice will itemize and identify with reasonable specificity the
            Buyer's Work to which it pertains, and will include reasonable
            documentation, such as invoices and receipts, to substantiate the
            amount of reimbursement requested. Reimbursement Notices may be
            submitted until November 1, 2002.

                             8.7.2.4. Buyer has the sole right to manage Buyers
            Work; provided, however, that Buyer's Work shall be performed, to
            the extent reasonably possible and consistent with Buyer's normal
            and customary operating practices for the Properties, by Buyer's
            employees. Seller's agreement to pay under Section 8.7.2.1. a 10%
            premium over and above Buyer's out of pocket costs constitutes
            Buyer's sole right to reimbursement for costs and expenses for
            Buyer's Work performed by Buyer's employees.

                             8.7.2.5. Seller may dispute costs for which Buyer
            seeks reimbursement pursuant to this Section 8.7.2 only if and to
            the extent that (a) Buyer does not materially comply with Sections
            8.7.2.3 or 8.7.2.4.; (b) it does not pertain to the Buyer's Work; or
            (c) if the amount claimed is mathematically incorrect or fraudulent.
            If Seller disputes any costs itemized in a Reimbursement Notice,
            Seller (i) will provide Buyer with a written notice within 10
            business days of receipt of the Reimbursement Notice, which notice
            will set forth, with reasonable specificity, the costs in dispute
            and (ii) will have the right to review Buyer's records as they
            relate to the Buyer's Work. If the parties are unable to reach
            agreement on the disputed costs within 60 days, the dispute will be
            subject to arbitration as set forth in Article 34. Seller will pay
            to Buyer 110% of any costs not in dispute within 30 business days of
            the receipt of the Reimbursement Notice.

                             8.7.2.6. This Section 8.7.2. sets forth Buyer's
            sole remedy with respect to Buyer's Work and this remedy is in lieu
            of any other remedy under the Agreement, applicable law or common
            law causes of action. Except as provided in this Section 8.7.2.,
            Buyer waives and releases all claims, rights or causes of action
            Buyer may have with respect to an item of Buyer's Work, including,
            but not limited to, any rights Buyer may have under Articles 8, 10,
            14 or 16; provided that Seller materially complies with its
            obligation to reimburse Buyer pursuant to this Section with respect
            to such item of Buyer's Work.

                     8.7.3. Release of Certain Claims

                             8.7.3.1 Provided that Seller materially complies
            with its obligations under this Amendment No. 2, Buyer waives and
            releases all claims, rights or causes of action Buyer may have,
            including, but not limited to, any rights Buyer may have under
            Articles 8, 10, 14 or 16, with respect to the following items:

Amendment No. 2 to Sale of Assets Agreement

                                       6
<PAGE>   64

                                   (a) The settlement and structural condition
            of Tanks 739, 740, 780, 782, 783 and 785 at Marrero.

                                   (b) Compliance with secondary containment
            requirements for tanks at Marrero.

                                   (c) The shorted pipeline casings at Marrero
            identified in July 9 Letter.

                                   (d) Low cathodic protection potential
            readings at Corpus Christi identified in Item 19 of the July 9
            Letter.

                                   (e) The condition of roofs on storage tanks
            17, 43, 104, 108 and 113 at Corpus Christi.

                             8.7.3.2. Notwithstanding the waiver and release
            provided by Section 8.7.3.1., Buyer may assert (and Seller may
            contest) a post-Closing claim under Article 10 for breach of any
            applicable warranty in Article 14 (without reference to Section
            14.16), if Buyer obtains information from testing, examinations or
            inspections conducted after the date hereof that Tanks 739, 740,
            780, 782, 783 or 785 at Marrero are in need of maintenance or
            repairs. Such claim shall be subject to all provisions of Article
            10. This Section 8.7.3.2. sets forth Buyer's sole remedy with
            respect to the foregoing items and this remedy is in lieu of any
            other remedy under the Agreement, applicable law or common law
            causes of action, including, but not limited to, any other rights
            Buyer may have under Articles 8, 10, 14 or 16.

                     8.7.4. Buyer hereby withdraws its request for arbitration
            in the July 29, 1999 letter from Wendy S. Brooks to F. Lamar Clark
            (the "July 29 Letter"). Buyer waives and releases any claims, rights
            or causes of action Buyer may have under Section 8.6 of this
            Agreement other than those asserted in the July 29, 1999 letter,
            which are waived and released in accordance with and pursuant to
            Sections 8.7.1.6., 8.7.2.6. and 8.7.3.1.

                     8.7.5. In consideration of the waivers and releases
            provided by Buyer to Seller, Seller waives and releases any claims,
            rights or causes of action Seller may have against Hazleton Fuel
            Management Company ("HFMC") and its affiliates, and predecessors or
            successors in interest, arising from the October 9, 1987 Natural Gas
            Purchase and Sale Agreement between HFMC and Seller. Seller will
            execute all documents reasonably requested by Buyer to effect the
            waiver and release provided by this Section 8.7.5. For purposes of
            this Agreement, Buyer and Seller allocate a value of $100,000 to the
            waiver and release of this claim.

                     8.7.6. This Amendment or the performance of Work by Seller
            will not be construed or admissible as an admission by Seller or
            knowledge of Seller that the facts and circumstances outlined the
            July 9 Letter, the July 20

Amendment No. 2 to Sale of Assets Agreement

                                       7
<PAGE>   65

            Letter or the July 29 Letter are true, or, if true, constitute a
            breach of any representation or warranty in this Agreement.

               8.8. Resolution of Dock Damage Claim. Seller has previously
            notified Buyer pursuant to Section 7.2 of the Agreement of a
            casualty loss to Ship Dock No. 2 at Galena Park as a result of the
            collision on July 24, 1999 of the San Leandio and Barges B-503 and
            B-404 with such dock (the "Dock Damage") and that Seller had elected
            to take remedial action. Seller will obtain bids for the repair of
            the dock damage so that the dock will be in substantially the same
            condition as prior to the accident. Seller will provide Buyer with
            copies of such bids and the scope of work and will cooperate in good
            faith with Seller to reach agreement on the work to be performed. If
            the parties are unable to reach agreement on scope of work within 60
            days, the dispute will be subject to arbitration as set forth in
            Article 34. Seller will pay to Buyer the full amount of the lowest
            bid to perform the agreed upon scope of work (the "Repair Bid
            Amount") and Buyer will be responsible to arrange for performance of
            such work. Provided that Seller has paid the Repair Bid Amount,
            Buyer waives and releases any other claims, rights or causes of
            action Buyer may have against Seller with respect to the Dock
            Damage."

         3. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed entirely within such State, without regard
to the conflicts of law principles of such State.

         4. Continuation. The parties hereto agree and acknowledge that the
Agreement, as amended by this Amendment, continues in full force and effect
according to its terms.

         5. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to be
duly executed, effective as of the day and year first above written.

                                   AMERADA HESS CORPORATION

                                   By: /s/  F. Lamar Clark
                                       -------------------------------

                                   Name:    F. Lamar Clark

                                   Title:   Senior Vice President

Amendment No. 2 to Sale of Assets Agreement

                                       8
<PAGE>   66

                                   WILLIAMS TERMINALS HOLDINGS, L.L.C.

                                   By: /s/  Michael Mears
                                       -------------------------------

                                   Name:    Michael Mears
                                         -----------------------------

                                   Title:   Vice President
                                         -----------------------------

                                   WILLIAMS PIPELINE HOLDINGS, L.L.C.

                                   By: /s/  Michael Mears
                                       -------------------------------

                                   Name:    Michael Mears
                                         -----------------------------

                                   Title:   Vice President
                                         -----------------------------

Amendment No. 2 to Sale of Assets Agreement

                                       9

<PAGE>   67

                   AMENDMENT NO. 3 TO SALE OF ASSETS AGREEMENT

         Amendment No. 3 dated as of September 8, 2000 (this "Amendment") to the
Sale of Assets Agreement (as defined below) between Amerada Hess Corporation, a
Delaware corporation ("Seller") and Williams Terminals Holdings, L.L.C. and
Williams Pipeline Holdings, L.L.C., each a Delaware limited liability company
(together, "Buyer").

                                   WITNESSETH:

         WHEREAS, Williams Energy Ventures, Inc. ("WEV") and Seller have entered
into a Sale of Assets Agreement dated May 10, 1999, as amended by Amendment No.
1 dated July 29, 1999 and Amendment No. 2 dated September 30, 1999 (the
"Agreement"), which agreement was assigned by WEV to Buyer on July 15, 1999; and

         WHEREAS, Buyer sent Seller a letter dated October 15, 1999 (the
"October 15 Letter") which asserted claims under Section 10.1(i) of the
Agreement for alleged breach of the representations and warranties in Sections
14.4 and 14.5 of the Agreement relating to the condition and repair of Tank 134
at Corpus Christi terminal and Tanks 331, 367, 370 and 388 at Galena Park
terminal.

         WHEREAS, Buyer served Seller with a notice of objection under Section
8.7.1.6 to the performance of certain work to be performed by Seller under
Sections 8.7.1(a) and (g) of the Agreement by letter dated February 28, 2000
(the "February 28 Letter").

         WHEREAS, Seller has objected to $119,695.54 of amounts billed to Seller
for repairs to Tank 372 at Galena Park under Section 8.7.2 of the Agreement, of
which $49,143,38 was subsequently paid by Seller.

         WHEREAS, Buyer and Seller desire to amend the Agreement to reflect
resolution of the respective claims asserted.

         NOW, THEREFORE, in consideration of the premises, and intending to be
legally bound by this Amendment, the Buyer and Seller hereby agree as follows:

         1. Definitions. All capitalized terms not defined herein shall have the
respective meanings assigned to such terms in the Agreement.

         2. Amendments. Effective as of the date hereof, the Agreement is hereby
amended as follows:

                  a) New Sections 8.7.1.10 and 8.9 shall be added as follows:

                        "8.7.1.10. Buyer hereby withdraws its objections
         submitted by the February 28 Letter to the Work performed by Seller in
         satisfaction of Seller's obligations pursuant to Section 8.7.1(a) and
         (g) of the Agreement. The time for the parties to reach agreement on
         the remaining disputed item set forth in the February 28 letter (which
         pertains to the Seller's obligations pursuant to Section 8.7.1(d))
         shall be extended to 60 days from the date of this Agreement."

Amendment No. 3 to Sale of Assets Agreement
<PAGE>   68

                  "8.9. Resolution of October 15 Breach of Warranty Claim.

                        8.9.1. Within thirty (30) days of the date of this
         Amendment, Seller will pay to Buyer the sum of $476,628.79 (the "Tank
         Settlement Amount"), representing the sum of (x) 100% of the costs for
         materials, supplies, contractors and services for Tanks 331, 367 and
         388 submitted to Seller by Buyer by Reimbursement Notices dated April
         18, 2000 and (y) 50% of the costs for materials, supplies, contractors
         and services for Tank 370 submitted to Seller by Buyer by Reimbursement
         Notice dated April 18, 2000. All amounts payable pursuant to this
         Section 8.9.1. will reduce Seller's Maximum Liability under Article 10
         dollar for dollar.

                        8.9.2. Seller withdraws its objections to payment of
         those portions of Reimbursement Notices pertaining to Tank 372 at
         Galena Park to which Seller has objected prior to the date of this
         Amendment. Within thirty (30) days of the date of this Amendment,
         pursuant to Section 8.7.2, Seller will pay to Buyer the sum of
         $70,552.16 (the "Tank 372 Amount"), representing the amounts of the
         "Total Amount Due" to which Seller had previously objected. Buyer does
         not presently anticipate the submittal of additional Reimbursement
         Notices for Seller's Work with respect to Tank 372. If Buyer submits
         additional Reimbursement Notices with respect to Tank 372, Seller may
         dispute such notices to the extent provided by Section 8.7.2.5.

                        8.9.3. Provided that Seller has paid the Tank Settlement
         Amount and the Tank 372 Amount, Buyer waives and releases any other
         claims, rights or causes of action Buyer may have against Seller,
         including, but not limited to, any rights Buyer may have under Articles
         8, 10, 14 or 16, with respect to the condition, repair, fitness for use
         or operability of Tank 134 at Corpus Christi terminal and Tanks 331,
         367, 370 and 388 at Galena Park terminal, but excluding any claims
         Buyer may have under Article 9 of the Agreement.

                        8.9.4. This Amendment will not be construed or
         admissible as an admission by Seller or knowledge of Seller that the
         facts and circumstances outlined the October 14 Letter or the February
         28 Letter are true, or, if true, constitute a breach of any
         representation or warranty in the Agreement."

         3. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed entirely within such State, without regard
to the conflicts of law principles of such State.

         4. Continuation. The parties hereto agree and acknowledge that the
Agreement, as amended by this Amendment, continues in full force and effect
according to its terms.

         5. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute one and the same instrument.

Amendment No. 3 to Sale of Assets Agreement

                                       2
<PAGE>   69

IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to be
duly executed, effective as of the day and year first above written.

                                 AMERADA HESS CORPORATION

                                 By:            /s/ F. Lamar Clark
                                    --------------------------------------------

                                 Name:  F. Lamar Clark

                                 Title:  Senior Vice President

                                 WILLIAMS TERMINALS HOLDINGS, L.L.C.

                                 By:       /s/ Michael Mears
                                    --------------------------------------------

                                 Name:         Michael Mears
                                      ------------------------------------------

                                 Title:        Vice President
                                       -----------------------------------------

                                 WILLIAMS PIPELINE HOLDINGS, L.L.C.

                                 By:       /s/ Michael Mears
                                    --------------------------------------------

                                 Name:         Michael Mears
                                      ------------------------------------------

                                 Title:        Vice President
                                       -----------------------------------------

Amendment No. 3 to Sale of Assets Agreement

                                       3

<PAGE>   70

                   AMENDMENT NO. 4 TO SALE OF ASSETS AGREEMENT

         Amendment No. 4 dated as of September 19, 2000 (this "Amendment") to
the Sale of Assets Agreement (as defined below) between Amerada Hess
Corporation, a Delaware corporation ("Seller") and Williams Terminals Holdings,
L.L.C. and Williams Pipeline Holdings, L.L.C., each a Delaware limited liability
company (together, "Buyer").

                                   WITNESSETH:

         WHEREAS, Williams Energy Ventures, Inc. ("WEV") and Seller have entered
into a Sale of Assets Agreement dated May 10, 1999, as amended by Amendment No.
1 dated July 29, 1999, Amendment No. 2 dated September 30, 1999, and Amendment
No. 3 dated September 8, 2000 (the "Agreement"), which agreement was assigned by
WEV to Buyer on July 15, 1999; and

         WHEREAS, Buyer sent Seller a letter dated January 10, 2000 (the
"Pipeline Letter") which asserted claims under Section 10.1(i) of the Agreement
for alleged breach of the representations and warranties in Sections 14.4 of the
Agreement relating to the condition and repair of the D-2 Dock line at Corpus
Christi terminal; and

         WHEREAS, Buyer served Seller with a notice of objection under Section
8.7.1.6 to the performance of certain work to be performed by Seller under
Sections 8.7.1(d) of the Agreement by letter dated February 28, 2000 (The
"February 28 Letter"); and

         WHEREAS, Buyer has requested certain information from the Seller, which
Seller has agreed to supply, provided that this Amendment No. 4 is signed; and

         WHEREAS, Buyer and Seller desire to amend the Agreement to reflect the
foregoing.

         NOW, THEREFORE, in consideration of the premises, and intending to be
legally bound by this Amendment, the Buyer and Seller hereby agree as follows:

         1. Definitions. All capitalized terms not defined herein shall have the
respective meanings assigned to such terms in the Agreement.

         2. Amendments. Effective as of the date hereof, the Agreement is hereby
amended as follows:

         a) New Sections 8.7.1.11 and 8.10 shall be added as follows:

                           "8.7.1.11. Provided that Seller has complied with its
         obligations under Article 36, Buyer hereby withdraws its objections
         submitted by the February 28 Letter to the Work performed by Seller in
         satisfaction of Seller's obligations pursuant to Section 8.7.1(d) of
         the Agreement."

            "8.10. Resolution of January 10 Breach of Warranty Claim.

                  8.10.1. Provided that Seller has complied with its obligations
         under Article 36, Buyer waives and releases any other claims, rights or
         causes of

<PAGE>   71

            action Buyer may have against Seller, including, but not limited to,
            any rights Buyer may have under Articles 8, 10, 14 or 16, with
            respect to the condition, repair, fitness for use or operability of
            the D-2 Dock line at Corpus Christi terminal, but excluding any
            claims Buyer may have under Article 9 of the Agreement.

                  8.10.2. This Amendment will not be construed or admissible as
            an admission by Seller or knowledge of Seller that the facts and
            circumstances outlined the Pipeline Letter or the February 28 Letter
            are true, or, if true, constitute a breach of any representation or
            warranty in the Agreement."

         b) Section 9.12 is hereby amended and restated in its entirety.

            "9.12    Vapor Recovery Unit.

                  9.12.1. Responsibility for Vapor Recovery Unit

                                    9.12.1.1. At its expense, Seller will take
                  all actions (including, but not limited to, installation of
                  additional emissions control equipment) necessary for the
                  Galena Park terminal to be in compliance with the MTBE removal
                  efficiency and mass emissions limits in Permit #4850 (as in
                  effect at Closing) and any other Environmental Laws currently
                  applicable to marine vapor emissions at Galena Park, which,
                  actions will be completed in a manner which will permit Buyer
                  to conduct the business as presently conducted on the
                  Properties. Seller anticipates that its obligations under this
                  Section 9.12 will be met by September 30, 1999. Seller will
                  use diligent efforts and proceed promptly to comply with its
                  obligations under this Section 9.12. Seller will have a right
                  of access to the Galena Park terminal for this purpose and
                  Seller will use its reasonable commercial efforts to minimize
                  any disruption to the operation of the Properties or
                  Personalty located thereon.

                                    9.12.1.2. Seller will pay to Buyer the sum
                  of $260,000 (the "VRU Settlement Amount") on October 19, 2000
                  (the "Payment Date") or on any date prior to the Payment Date.
                  The amounts payable pursuant to this Section 9.12.1.2. do not
                  reduce Seller's Maximum Liability under Article 10.

                                    9.12.1.3. Notwithstanding the provisions of
                  Section 9.12.1.1 or any other provision of this Agreement and
                  provided that Seller has complied with its obligations under
                  Article 36, upon payment of the VRU Settlement Amount as
                  provided in Section 9.12.1.2, Seller's obligation under
                  Section 9.12.5 will be null and void and Buyer assumes
                  responsibility for all actions (including, but not limited to,
                  installation of additional emissions control equipment)
                  necessary for the Galena Park terminal to be in compliance
                  with the MTBE removal efficiency and mass emissions limits in
                  Permit #4850 and any other Environmental Laws applicable to
                  marine vapor emissions at Galena Park. Buyer shall assume
                  responsibility for, and indemnify Seller against,
                  Environmental Claims brought against Seller by or on behalf of
                  any governmental

                                        2
<PAGE>   72

                  agency to the extent that such Environmental Claim seeks
                  compliance (but not fines or penalties, which are addressed
                  under Section 9.12.2) with Environmental Laws applicable to
                  marine vapor emissions after September 19, 2000.

                           9.12.2. Indemnity

                                    9.12.2.1. Notwithstanding the provisions of
                  Sections 9.4.1.(iii) or 9.4.2.(ii), Seller will defend,
                  indemnify and hold Buyer Indemnitees harmless from and against
                  all Environmental Claims and resulting Environmental Losses:

                                           (i) arising out of access to Galena
                  Park pursuant to this Section 9.12.; and

                                           (ii) for civil fines or penalties
                  arising from non-compliance with the MTBE removal efficiency
                  and mass emissions limits in Permit #4850 to the extent that
                  such violation arises from ownership or operation of the
                  Petrogas marine vapor recovery unit prior to and after Closing
                  until 60 days after the Payment Date; provided that Buyer
                  complies with any lawful order or directive of a governmental
                  agency and Buyer operates the Petrogas marine vapor recovery
                  unit in a reasonable and prudent fashion judged by industry
                  practices, given. current and past circumstances; and provided
                  further that Seller shall not be obligated to indemnify Buyer
                  for, and shall be indemnified by Buyer against, any portion of
                  civil fines or penalties relating to marine vapor emissions
                  which are attributable to ownership or operation of the Galena
                  Park Terminal more than 60 days after the Payment Date.

                                    9.12.2.2. All claims for indemnity by Buyer
                  or Seller under Section 9.12.1.3 or 9.12.2.1 shall be
                  asserted, managed and resolved in accordance with Section
                  10.6.

                                    9.12.2.3. Notwithstanding Section 10.6, if
                  an Environmental Claim results in a good faith claim for
                  indemnity under Section 9.12 by both Buyer and Seller, then:

                                           (a) both Parties will jointly
                  participate and cooperate in good faith in the defense,
                  conduct and settlement of such Environmental Claim; and

                                           (b) each Party will bear its own
                  costs and expenses, including legal fees, and neither Party
                  shall be required to notify the other regarding intent to
                  defend such Claim; and

                                           (c) each Party will have the
                  opportunity to attend all meetings, hearings and conferences
                  with the third party asserting the Environmental Claim or held
                  by the judicial or administrative body adjudicating the
                  Environmental Claim.

                                       3
<PAGE>   73

                  In the event that the Parties cannot agree on conduct or
                  defense of a portion of an Environmental Claim subject to this
                  Section 9.12.2.3., (i) Buyer has the right to control the
                  defense or settlement of that portion of an Environmental
                  Claim which seeks compliance with Environmental Laws
                  applicable to marine vapor emissions after September 19, 2000,
                  and (ii) the Party which will have to pay the larger
                  percentage of fines and penalties sought by an Environmental
                  Claim has the right to control the defense or settlement of
                  that portion of the Environmental Claim. No portion of the
                  Environmental Claim may be settled or otherwise compromised by
                  one Party in a manner which imposes any obligation or
                  liability on the other Party without the prior written consent
                  of the other Party, which consent will not be unreasonably
                  withheld.

                                    9.12.3. Title to all equipment installed at
                  Galena Park pursuant to this Section 9.12 will be transferred
                  to Buyer. Seller hereby grants to Buyer a nonexclusive,
                  royalty-fee and perpetual license to use any intellectual
                  property necessary for Buyer to use or operate the equipment
                  or process installed pursuant to this Section 9.12 (the
                  "Necessary Intellectual Property") which Seller presently owns
                  or otherwise has the right to license. To the best of Seller's
                  knowledge, Seller presently owns or has the right to license
                  the Necessary Intellectual Property. To the extent that Seller
                  does not own or have the right to license the Necessary
                  Intellectual Property, Seller will also execute and deliver,
                  or will cause to be executed and delivered, to the Buyer any
                  other appropriate agreements, documents or other instruments
                  as may be necessary to ensure that the Buyer has a
                  nonexclusive license to use any Necessary Intellectual
                  Property without cost to Buyer.

                                    9.12.4. Provided that Seller has fully
                  performed and satisfied its obligations under Section 9.12.1.2
                  and Article 36, Buyer waives any rights it may have under
                  Articles 8, 9 (except for rights Buyer may have under Article
                  9.4.1.(i), (ii), (iv) or (vi)), 10, 14 or 16 with respect to
                  the marine vapor recovery system at Galena Park or the
                  amendment of item 2 of Schedule 9.2.1(iv), attached to
                  Amendment No. 1, except for the right of indemnification
                  provided under Section 9.12.2 or the right to enforce any
                  other provision of this Amendment No. 4 that Seller has not
                  complied with.

                                    9.12.5. By no later than September 30, 1999,
                  Seller will provide to Buyer detailed, written operating and
                  maintenance procedures related to the marine vapor recovery
                  system."

         c)       A new Section 10.7 shall be added as follows:

                           "10.7. Provided that Seller has complied with its
                  obligations under Article 36, the Survival Period under
                  Section 10.1 will end on October 31, 2000, except for any
                  Claims relating to the pipelines und the Houston Ship Channel
                  (as referenced in the last paragraph of Section 10.1), as to
                  which the Survival Period under Section 10.1 will not change."

                                        4
<PAGE>   74

         d)       New Article 36 shall be added as follows:

                  "36.     SELLER'S OBLIGATION TO PROVIDE INFORMATION

                           36.1 Seller agrees to use its best efforts to provide
                  the information set forth in the Attachment to Amendment No. 4
                  (the "Attachment"). Seller recognizes the importance to Buyer
                  of Buyer's or Ernst & Young's prompt receipt of the
                  information set forth in the Amendment and agrees that if, for
                  any reason, Buyer (in the exercise of its sole discretion,
                  which shall be exercised reasonably and in good faith),
                  determines that the requirements to provide information have
                  not been satisfied by 11:59 PM EST, on Tuesday, September 19,
                  2000 (the "Deadline"), Buyer shall have the right to cancel
                  this Amendment No. 4. Buyer shall give prompt written notice
                  to Seller of Buyer's exercise of its election to cancel. The
                  Deadline for Seller to satisfy its obligations to provide
                  information required under this Article 36 shall be
                  automatically extended for (i) a 24 hour period ending on
                  11:59 PM EST on September 20, 2000, unless written notice of
                  an election to cancel is provided to Seller by 1:00 PM EST on
                  September 20, 2000, and (ii) up to nine (9) additional
                  successive 24 hour periods, unless a written notice of an
                  election to cancel is given by 1:00 PM EST during the relevant
                  24 hour period. Seller shall supply to Shepherd, no later than
                  the Deadline (as it may be extended) a summary of the
                  information set forth in item 3 of the Attachment.
                  Notwithstanding the foregoing, Seller shall have at least
                  until 6:00 PM EST on Thursday, September 21, 2000, to (i)
                  provide copies to Shepherd of support for the Seller Vendor
                  Invoices and (ii) to provide the information required pursuant
                  to item 4 of the Attachment. Buyer's and/or Seller's
                  obligation to provide written notices and copies under this
                  Article 36 may be met by (x) electronically confirmed
                  facsimile or (y) by certified mail, return receipt requested,
                  or by recognized overnight carrier, in which case such copies
                  will be deemed to have been provided by 5:00 PM EST on the day
                  after mailing or entrustment to a recognized carrier. Notice
                  or copies sent by facsimile will be deemed to have been
                  received at the time of electronic confirmation of receipt
                  provided that the notice or copies are sent by certified mail,
                  return receipt requested or by recognized overnight courier
                  the same day.

                           36.2 Section 36.1 notwithstanding, Seller shall not
                  be obligated to disclose, with respect to accrual for
                  severance on the July 31 trial balance, any specific
                  information relating to individual employees.

                           36.3 Information required to provided by Seller or
                  Rielly to Shepherd by this Article 36 shall be kept
                  confidential and not disclosed to Buyer, except to the extent
                  necessary to prepare audited balance sheets relating to the
                  Purchased Assets.

                           36.4 Except as otherwise specifically provided by
                  this Article 36, the provisions of the Confidentiality
                  Agreement between Buyer and Seller dated August 29, 2000,
                  apply to the information provided pursuant to this Article 36,
                  which will be Confidential Information for purposes of that
                  Agreement.

                                        5
<PAGE>   75

                           36.5 If Buyer cancels this Amendment No. 4 in
                  accordance with Section 36.1, then Buyer shall promptly repay
                  to Seller all amounts paid (if any) under Section 9.12.1.2.
                  and Buyer, its Affiliates, agents and auditors shall not use
                  or disclose for any purpose whatsoever, either directly or
                  indirectly, the information provided to Buyer or Shepherd by
                  Seller pursuant to this Article 36, and will return or cause
                  to be returned to Seller all copies of any written or
                  electronic information provided by Seller within ten (10) days
                  of cancellation. If, after notice of cancellation provided in
                  accordance with Section 36.1, Buyer, its Affiliates, agents or
                  auditors use, disclose or do not return such information or
                  promptly discontinue its use, then Buyer's cancellation of
                  this Amendment No. 4 will be null and void and Seller may
                  enforce it in accordance with its terms. Buyer's obligation
                  after cancellation of this Amendment No. 4 to discontinue use
                  of information provided by Seller in accordance with the
                  requirements of this Article 36 includes, but is not limited
                  to, promptly withdrawing (or causing the withdrawal of) from
                  use or distribution any offering document, financial
                  statement, preliminary prospectus, final prospectus or a
                  registration statement which was prepared using or relying on
                  such information.

                           36.6 If Buyer does not cancel this Amendment No. 4 by
                  September 30, 2000, or such other date as the Buyer and Seller
                  agree in writing, then Seller will, for all purposes of this
                  Amendment No. 4, be deemed to have complied with its
                  obligations under this Article 36.

                           36.7 Buyer shall indemnify, defend and hold Seller,
                  its Affiliates, successors and assigns and their respective
                  directors, officers and employees (collectively, the "Seller
                  Indemnitees") harmless from and against any and all Claims of
                  every type and nature whatsoever suffered by Seller
                  Indemnitees in consequence of such Claim to the extent arising
                  from or related to the Securities Act of 1933 or otherwise,
                  insofar as such Claims (or actions in respect thereof) (x)
                  relate to the Purchased Assets and relate to the period of
                  time from and after the Closing Date including offerings of
                  securities and financings by Buyer relating to the Purchased
                  Assets after the Closing Date and (y) relate to, arise out of
                  or are based upon an untrue statement or alleged untrue
                  statement of a material fact contained in any of Buyer's (or
                  its Affiliates) future offering documents, financial
                  statements, preliminary prospectuses, final prospectuses,
                  registration statements or any amendment or supplement
                  thereto, or arise out of or are based upon the omission or
                  alleged omission to state therein a material fact required to
                  be stated therein or necessary to make the statements therein
                  not misleading."

         3. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws of the State of New York applicable to
agreements made and to be performed entirely within such State, without regard
to the conflicts of law principles of such State.

         4. Continuation. The parties hereto agree and acknowledge that the
Agreement, as amended by this Amendment No. 4, continues in full force and
effect according to its terms and

                                        6
<PAGE>   76

the parties specifically reserve all of their respective rights under the
Agreement not specifically waived, amended or modified by this Amendment No. 4.

         5. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have each caused this Amendment
to be duly executed, effective as of the day and year first above written.

                                      AMERADA HESS CORPORATION

                                      By: /s/  F. Lamar Clark
                                          --------------------------------
                                      Name:    F. Lamar Clark

                                      Title:   Senior Vice President

                                      WILLIAMS TERMINALS HOLDINGS, L.L.C.

                                      By: /s/  Michael Mears
                                          --------------------------------

                                      Name:    Michael Mears
                                           -------------------------------

                                      Title:   Vice President
                                            ------------------------------

                                      WILLIAMS PIPELINE HOLDINGS, L.L.C.

                                      By:  /s/ Michael Mears
                                          --------------------------------

                                      Name:    Michael Mears
                                           -------------------------------

                                      Title:   Vice President
                                            ------------------------------

                                       7

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