Document:

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                                                                    EXHIBIT 4(d)

                                  $550,000,000

                            ANADARKO FINANCE COMPANY

                          6 3/4% SENIOR NOTES DUE 2011

              ALL OBLIGATIONS FULLY AND UNCONDITIONALLY GUARANTEED
                                       BY
                         ANADARKO PETROLEUM CORPORATION

                          REGISTRATION RIGHTS AGREEMENT
                                                                    May 23, 2001

Credit Suisse First Boston Corporation
         Eleven Madison Avenue
         New York, New York 10010-3629

Dear Sirs:

         Anadarko Finance Company, an unlimited liability company organized
under the laws of the province of Nova Scotia, Canada (the "ISSUER"), proposes
to issue and sell to Credit Suisse First Boston Corporation (the "INITIAL
PURCHASER"), upon the terms set forth in a purchase agreement dated May 16, 2001
(the "PURCHASE AGREEMENT"), $550,000,000 aggregate principal amount of 6 3/4%
Senior Notes due 2011 ( the "INITIAL SECURITIES"). The Initial Securities will
be fully and unconditionally guaranteed pursuant to guarantees (the
"GUARANTEES") by Anadarko Petroleum Corporation, a Delaware corporation (the
"GUARANTOR" and, collectively with the Issuer, the "COMPANY"). The Initial
Securities will be issued pursuant to an Indenture, dated as of April 26, 2001
(the "ORIGINAL INDENTURE") as amended and supplemented by the First Supplemental
Indenture dated as of May 23, 2001 (the "INDENTURE SUPPLEMENT", and the Original
Indenture as so amended and supplemented the "INDENTURE"), among the Issuer, the
Guarantor and The Bank of New York, as trustee (the "TRUSTEE"). As an inducement
to the Initial Purchaser to enter into the Purchase Agreement, the Company
agrees with the Initial Purchaser, for the benefit of the Initial Purchaser and
the holders of the Securities (as defined below) (collectively, the "HOLDERS"),
as follows:

         1. Registered Exchange Offer. Unless not permitted by applicable law
(after the Company has complied with the ultimate paragraph of this Section 1),
the Company shall prepare and, not later than 120 days (such 120th day being a
"FILING DEADLINE") after the date on which the Initial Purchaser purchases the
Initial Securities pursuant to the Purchase Agreement (the "CLOSING DATE"), file
with the Securities and Exchange Commission (the "COMMISSION") a

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registration statement (the "EXCHANGE OFFER REGISTRATION STATEMENT") on an
appropriate form under the Securities Act of 1933, as amended (the "SECURITIES
ACT"), with respect to a proposed offer (the "REGISTERED EXCHANGE OFFER") to the
Holders of Transfer Restricted Securities (as defined in Section 6 hereof), who
are not prohibited by any law or policy of the Commission from participating in
the Registered Exchange Offer, to issue and deliver to such Holders, in exchange
for the Initial Securities, a like aggregate principal amount of debt securities
of the Issuer, guaranteed pursuant to guarantees by the Guarantor, in each case,
issued under the Indenture in a transaction registered under the Securities Act
and identical in all material respects to the Initial Securities and the
Guarantees, respectively (collectively, the "EXCHANGE SECURITIES"). The Company
shall use its best efforts to (i) cause the Exchange Offer Registration
Statement to become effective under the Securities Act at the earliest possible
time, but in no event later than 180 days after the Closing Date (such 180th day
being the "EFFECTIVENESS DEADLINE") and (ii) keep the Exchange Offer
Registration Statement effective for not less than 30 days (or longer, if
required by applicable law) after the date notice of the Registered Exchange
Offer is mailed to the Holders (such period being the "EXCHANGE OFFER
REGISTRATION PERIOD").

         Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered
Exchange Offer. The Company (i) will be entitled to consummate the Registered
Exchange Offer 20 business days after the commencement thereof (provided that
the Company has accepted all the Initial Securities theretofore validly tendered
in accordance with the terms of the Registered Exchange Offer) and (ii) will be
required to consummate the Registered Exchange Offer no later than 30 days after
the date on which the Exchange Offer Registration Statement is declared
effective (such 30th day being the "CONSUMMATION DEADLINE").

         It is the objective of the Registered Exchange Offer to enable each
Holder of Transfer Restricted Securities electing to exchange Initial Securities
for Exchange Securities (assuming that such Holder is not an affiliate of the
Company within the meaning of the Securities Act, acquires the Exchange
Securities in the ordinary course of such Holder's business and has no
arrangements with any person to participate in the distribution of the Exchange
Securities and is not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer) to trade such Exchange
Securities from and after their receipt without any limitations or restrictions
under the Securities Act and without material restrictions under the securities
laws of the several states of the United States.

         The Company acknowledges that, pursuant to current interpretations by
the Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange
Securities (an "EXCHANGING DEALER"), is required to deliver a prospectus
containing the information set forth in (a) Annex A hereto on the cover, (b)
Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of
the Exchange Offer" section, and (c) Annex C hereto in the "Plan of
Distribution" section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) the Initial Purchaser if it elects to sell
Securities (as defined below) acquired in exchange for Initial Securities
constituting any portion of an unsold

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allotment, is required to deliver a prospectus containing the information
required by Items 507 or 508 of Regulation S-K under the Securities Act, as
applicable, in connection with such sale.

         The Company shall use its best efforts to keep the Exchange Offer
Registration Statement effective and to amend and supplement the prospectus
contained therein, in order to permit such prospectus to be lawfully delivered
by all persons subject to the prospectus delivery requirements of the Securities
Act for such period of time as such persons must comply with such requirements
in order to resell the Exchange Securities; provided, however, that (i) in the
case where such prospectus and any amendment or supplement thereto must be
delivered by an Exchanging Dealer or the Initial Purchaser, such period shall be
the lesser of 180 days and the date on which all Exchanging Dealers and the
Initial Purchaser have sold all Exchange Securities held by them (unless such
period is extended pursuant to Section 3(j) below) and (ii) the Company shall
make such prospectus and any amendment or supplement thereto available to any
broker-dealer for use in connection with any resale of any Exchange Securities
for a period of not less than 180 days after the consummation of the Registered
Exchange Offer.

         If, upon consummation of the Registered Exchange Offer, the Initial
Purchaser holds Initial Securities acquired by it as part of its initial
purchase from the Issuer, the Company, simultaneously with the delivery of the
Exchange Securities pursuant to the Registered Exchange Offer, shall issue and
deliver to the Initial Purchaser upon the written request of the Initial
Purchaser, in exchange (the "PRIVATE EXCHANGE") for the Initial Securities held
by the Initial Purchaser, a like aggregate principal amount of debt securities
of the Issuer, guaranteed pursuant to guarantees of the Guarantor, issued under
the Indenture and identical in all material respects to the Exchange Securities
(the "PRIVATE EXCHANGE SECURITIES"). The Initial Securities, the Exchange
Securities and the Private Exchange Securities are herein collectively called
the "SECURITIES".

         In connection with the Registered Exchange Offer, the Company shall:

                  (a) mail to each Holder a copy of the prospectus forming part
         of the Exchange Offer Registration Statement, together with an
         appropriate letter of transmittal and related documents;

                  (b) keep the Registered Exchange Offer open for not less than
         20 business days (or longer, if required by applicable law) after the
         date notice thereof is mailed to the Holders;

                  (c) utilize the services of a depositary for the Registered
         Exchange Offer with an address in the Borough of Manhattan, The City of
         New York, which may be the Trustee or an affiliate of the Trustee;

                  (d) permit Holders to withdraw tendered Securities at any time
         prior to the close of business, New York time, on the last business day
         on which the Registered Exchange Offer shall remain open; and

                  (e) otherwise comply with all applicable laws.

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         As soon as practicable after the close of the Registered Exchange Offer
or the Private Exchange, as the case may be, the Company shall:

                  (x) accept for exchange all the Securities validly tendered
         and not withdrawn pursuant to the Registered Exchange Offer and the
         Private Exchange;

                  (y) deliver to the Trustee for cancellation all the Initial
         Securities so accepted for exchange; and

                  (z) cause the Trustee to authenticate and deliver promptly to
         each Holder of the Initial Securities either Exchange Securities or
         Private Exchange Securities, as the case may be, equal in principal
         amount to the Initial Securities of such Holder so accepted for
         exchange.

         The Indenture will provide that the Exchange Securities will not be
subject to the transfer restrictions set forth in the Indenture and that all the
Securities of each series bearing the same interest rate and maturity will vote
and consent together on all matters as one class and that none of the Securities
of each series bearing the same interest rate and maturity will have the right
to vote or consent as a class separate from one another on any matter.

         Interest on each Exchange Security and Private Exchange Security issued
pursuant to the Registered Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Initial Securities surrendered in exchange therefor or, if no interest has been
paid on the Initial Securities, from the date provided in the Initial
Securities.

         Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer (i) any Exchange Securities received by such Holder
will be acquired in the ordinary course of business, (ii) such Holder will have
no arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an "affiliate," as defined in Rule
405 of the Securities Act, of the Company or if it is an affiliate, such Holder
will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, (iv) if such Holder is not a
broker-dealer, that it is not engaged in, and does not intend to engage in, the
distribution of the Exchange Securities and (v) if such Holder is a
broker-dealer, that it will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities and that it will be required to
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.

         Notwithstanding any other provisions hereof, the Company will ensure
that (i) any Exchange Offer Registration Statement and any amendment thereto and
any prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations
thereunder, (ii) any Exchange Offer Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any prospectus
forming part of any Exchange Offer

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Registration Statement, and any supplement to such prospectus, does not include
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

         If following the date hereof there has been announced a change in
Commission policy with respect to exchange offers that in the reasonable opinion
of counsel to the Company raises a substantial question as to whether the
Registered Exchange Offer is permitted by applicable federal law, the Company
will seek a no-action letter or other favorable decision from the Commission
allowing the Company to consummate the Registered Exchange Offer. The Company
will pursue the issuance of such a decision to the Commission staff level. In
connection with the foregoing, the Company will take all such other action as
may be requested by the Commission or otherwise required in connection with the
issuance of such decision, including without limitation (i) participating in
telephonic conferences with the Commission, (ii) delivering to the Commission
staff an analysis prepared by counsel to the Company setting forth the legal
bases upon which such counsel has concluded that the Registered Exchange Offer
should be permitted and (iii) diligently pursuing a resolution by the Commission
staff.

         2. Shelf Registration. If, (i) because of any change in law or in
applicable interpretations thereof by the staff of the Commission, the Company
is not permitted to effect a Registered Exchange Offer, as contemplated by
Section 1 hereof, (ii) the Registered Exchange Offer is not consummated by the
210th day after the Closing Date, (iii) the Initial Purchaser so requests with
respect to the Private Exchange Securities (or the Initial Securities under the
conditions described in clause (i) or (ii)) or (iv) any Holder (other than an
Exchanging Dealer) is not eligible to participate in the Registered Exchange
Offer or, in the case of any Holder (other than an Exchanging Dealer) that
participates in the Registered Exchange Offer, such Holder does not receive
freely tradeable Exchange Securities on the date of the exchange and any such
Holder so requests prior to the 20th business day following the consummation of
the Registered Exchange Offer, the Company shall take the following action (the
date on which any of the conditions described in the foregoing clauses (i)
through (iv) occur, including in the case of clauses (iii) or (iv) the receipt
of the required notice, being a "TRIGGER DATE"):

                  (a) The Company shall promptly (but in no event more than 45
         days after the Trigger Date (such 45th day being a "FILING DEADLINE"))
         file with the Commission and thereafter use its best efforts to cause
         to be declared effective no later than 60 days after the Trigger Date
         (such 60th day being an "EFFECTIVENESS DEADLINE") a registration
         statement (the "SHELF REGISTRATION STATEMENT" and, together with the
         Exchange Offer Registration Statement, the "REGISTRATION STATEMENT") on
         an appropriate form under the Securities Act relating to the offer and
         sale of the Transfer Restricted Securities by the Holders thereof from
         time to time in accordance with the methods of distribution set forth
         in the Shelf Registration Statement and Rule 415 under the Securities
         Act (hereinafter, the "SHELF REGISTRATION"); provided, however, that no
         Holder (other than the Initial Purchaser) shall be entitled to have the
         Securities held by it covered by such Shelf Registration Statement
         unless such Holder agrees in writing to be bound by all the provisions
         of this Agreement applicable to such Holder.

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                  (b) The Company shall use its best efforts to keep the Shelf
         Registration Statement continuously effective in order to permit the
         prospectus included therein to be lawfully delivered by the Holders of
         the relevant Securities, for a period of two years (or for such longer
         period if extended pursuant to Section 3(j) below) from the date of its
         effectiveness or such shorter period that will terminate when all the
         Securities covered by the Shelf Registration Statement (i) have been
         sold pursuant thereto or (ii) are no longer restricted securities (as
         defined in Rule 144 under the Securities Act, or any successor rule
         thereunder). The Company shall be deemed not to have used its best
         efforts to keep the Shelf Registration Statement effective during the
         requisite period if it voluntarily takes any action that would result
         in Holders of Securities covered thereby not being able to offer and
         sell such Securities during that period, unless such action is required
         by applicable law.

                  (c) Notwithstanding any other provisions of this Agreement to
         the contrary, the Company shall cause the Shelf Registration Statement
         and the related prospectus and any amendment or supplement thereto, as
         of the effective date of the Shelf Registration Statement, amendment or
         supplement, (i) to comply in all material respects with the applicable
         requirements of the Securities Act and the rules and regulations of the
         Commission and (ii) not to contain any untrue statement of a material
         fact or omit to state a material fact required to be stated therein or
         necessary in order to make the statements therein, in light of the
         circumstances under which they were made, not misleading.

         3. Registration Procedures. In connection with any Shelf Registration
contemplated by Section 2 hereof and, to the extent applicable, any Registered
Exchange Offer contemplated by Section 1 hereof, the following provisions shall
apply:

                  (a) The Company shall (i) furnish to the Initial Purchaser,
         prior to the filing thereof with the Commission, a copy of the
         Registration Statement and each amendment thereof and each supplement,
         if any, to the prospectus included therein and, in the event that the
         Initial Purchaser (with respect to any portion of an unsold allotment
         from the original offering) is participating in the Registered Exchange
         Offer or the Shelf Registration Statement, the Company shall use its
         best efforts to reflect in each such document, when so filed with the
         Commission, such comments as the Initial Purchaser reasonably may
         propose; (ii) include the information set forth in Annex A hereto on
         the cover, in Annex B hereto in the "Exchange Offer Procedures" section
         and the "Purpose of the Exchange Offer" section and in Annex C hereto
         in the "Plan of Distribution" section of the prospectus forming a part
         of the Exchange Offer Registration Statement and include the
         information set forth in Annex D hereto in the Letter of Transmittal
         delivered pursuant to the Registered Exchange Offer; (iii) if requested
         by the Initial Purchaser, include the information required by Items 507
         or 508 of Regulation S-K under the Securities Act, as applicable, in
         the prospectus forming a part of the Exchange Offer Registration
         Statement; (iv) include within the prospectus contained in the Exchange
         Offer Registration Statement a section entitled "Plan of Distribution,"
         reasonably acceptable to the Initial Purchaser, which shall contain a
         summary statement of the positions taken or policies made by the staff
         of the Commission with respect to the potential "underwriter" status of
         any broker-dealer that is the beneficial owner (as defined in Rule
         13d-3 under the Securities Exchange Act of 1934, as amended (the
         "Exchange

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         Act")) of Exchange Securities received by such broker-dealer in the
         Registered Exchange Offer (a "PARTICIPATING BROKER-DEALER"), whether
         such positions or policies have been publicly disseminated by the staff
         of the Commission or such positions or policies, in the reasonable
         judgment of the Initial Purchaser based upon advice of counsel (which
         may be in-house counsel), represent the prevailing views of the staff
         of the Commission; and (v) in the case of a Shelf Registration
         Statement, include the names of the Holders who propose to sell
         Securities pursuant to the Shelf Registration Statement as selling
         securityholders.

                  (b) The Company shall give written notice to the Initial
         Purchaser, the Holders of the Securities and any Participating
         Broker-Dealer from whom the Company has received prior written notice
         that it will be a Participating Broker-Dealer in the Registered
         Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof shall
         be accompanied by an instruction to suspend the use of the prospectus
         until the requisite changes have been made):

                           (i) when the Registration Statement or any amendment
                  thereto has been filed with the Commission and when the
                  Registration Statement or any post-effective amendment thereto
                  has become effective;

                           (ii) of any request by the Commission for amendments
                  or supplements to the Registration Statement or the prospectus
                  included therein or for additional information;

                           (iii) of the issuance by the Commission of any stop
                  order suspending the effectiveness of the Registration
                  Statement or the initiation of any proceedings for that
                  purpose;

                           (iv) of the receipt by the Company or its legal
                  counsel of any notification with respect to the suspension of
                  the qualification of the Securities for sale in any
                  jurisdiction or the initiation or threat of any proceeding for
                  such purpose; and

                           (v) of the happening of any event that requires the
                  Company to make changes in the Registration Statement or the
                  prospectus in order that the Registration Statement or the
                  prospectus do not contain an untrue statement of a material
                  fact nor omit to state a material fact required to be stated
                  therein or necessary to make the statements therein (in the
                  case of the prospectus, in light of the circumstances under
                  which they were made) not misleading.

                  (c) The Company shall make every reasonable effort to obtain
         the withdrawal at the earliest possible time of any order suspending
         the effectiveness of the Registration Statement.

                  (d) The Company shall furnish to each Holder of Securities
         included within the coverage of the Shelf Registration, without charge,
         at least one copy of the Shelf Registration Statement and any
         post-effective amendment thereto, including financial

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         statements and schedules, and, if the Holder so requests in writing,
         all exhibits thereto (including those, if any, incorporated by
         reference).

                  (e) The Company shall deliver to each Exchanging Dealer and
         the Initial Purchaser, and to any other Holder who so requests, without
         charge, at least one copy of the Exchange Offer Registration Statement
         and any post-effective amendment thereto, including financial
         statements and schedules, and, if the Initial Purchaser or any such
         Holder requests, all exhibits thereto (including those incorporated by
         reference).

                  (f) The Company shall, during the Shelf Registration Period,
         deliver to each Holder of Securities included within the coverage of
         the Shelf Registration, without charge, as many copies of the
         prospectus (including each preliminary prospectus) included in the
         Shelf Registration Statement and any amendment or supplement thereto as
         such person may reasonably request. The Company consents, subject to
         the provisions of this Agreement, to the use of the prospectus or any
         amendment or supplement thereto by each of the selling Holders of the
         Securities in connection with the offering and sale of the Securities
         covered by the prospectus, or any amendment or supplement thereto,
         included in the Shelf Registration Statement.

                  (g) The Company shall deliver to the Initial Purchaser, any
         Exchanging Dealer, any Participating Broker-Dealer and such other
         persons required to deliver a prospectus following the Registered
         Exchange Offer, without charge, as many copies of the final prospectus
         included in the Exchange Offer Registration Statement and any amendment
         or supplement thereto as such persons may reasonably request. The
         Company consents, subject to the provisions of this Agreement, to the
         use of the prospectus or any amendment or supplement thereto by the
         Initial Purchaser, if necessary, any Participating Broker-Dealer and
         such other persons required to deliver a prospectus following the
         Registered Exchange Offer in connection with the offering and sale of
         the Exchange Securities covered by the prospectus, or any amendment or
         supplement thereto, included in the Exchange Offer Registration
         Statement.

                  (h) Prior to any public offering of the Securities pursuant to
         any Registration Statement the Company shall register or qualify or
         cooperate with the Holders of the Securities included therein and their
         respective counsel in connection with the registration or qualification
         of the Securities for offer and sale under the securities or "blue sky"
         laws of such states of the United States as any Holder of the
         Securities reasonably requests in writing and do any and all other acts
         or things necessary or advisable to enable the offer and sale in such
         jurisdictions of the Securities covered by such Registration Statement;
         provided, however, that the Company shall not be required to (i)
         qualify generally to do business in any jurisdiction where it is not
         then so qualified or (ii) take any action which would subject it to
         general service of process or to taxation in any jurisdiction where it
         is not then so subject.

                  (i) The Company shall cooperate with the Holders of the
         Securities to facilitate the timely preparation and delivery of
         certificates representing the Securities to be sold pursuant to any
         Registration Statement free of any restrictive legends and in such

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         denominations and registered in such names as the Holders may request a
         reasonable period of time prior to sales of the Securities pursuant to
         such Registration Statement.

                  (j) Upon the occurrence of any event contemplated by
         paragraphs (ii) through (v) of Section 3(b) above during the period for
         which the Company is required to maintain an effective Registration
         Statement, the Company shall promptly prepare and file a post-effective
         amendment to the Registration Statement or a supplement to the related
         prospectus and any other required document so that, as thereafter
         delivered to Holders of the Securities or purchasers of Securities, the
         prospectus will not contain an untrue statement of a material fact or
         omit to state any material fact required to be stated therein or
         necessary to make the statements therein, in light of the circumstances
         under which they were made, not misleading. If the Company notifies the
         Initial Purchaser, the Holders of the Securities and any known
         Participating Broker-Dealer in accordance with paragraphs (ii) through
         (v) of Section 3(b) above to suspend the use of the prospectus until
         the requisite changes to the prospectus have been made, then the
         Initial Purchaser, the Holders of the Securities and any such
         Participating Broker-Dealers shall suspend use of such prospectus, and
         the period of effectiveness of the Shelf Registration Statement
         provided for in Section 2(b) above and the Exchange Offer Registration
         Statement provided for in Section 1 above shall each be extended by the
         number of days from and including the date of the giving of such notice
         to and including the date when the Initial Purchaser, the Holders of
         the Securities and any known Participating Broker-Dealer shall have
         received such amended or supplemented prospectus pursuant to this
         Section 3(j).

                  (k) Not later than the effective date of the applicable
         Registration Statement, the Company will provide a CUSIP number for the
         Initial Securities, the Exchange Securities or the Private Exchange
         Securities, as the case may be. The Company will also provide the
         applicable trustee with printed certificates for the Initial
         Securities, the Exchange Securities or the Private Exchange Securities,
         as the case may be, in a form eligible for deposit with The Depository
         Trust Company, at or prior to the time of issuance of such Securities.

                  (l) The Company will comply with all rules and regulations of
         the Commission to the extent and so long as they are applicable to the
         Registered Exchange Offer or the Shelf Registration and will make
         generally available to its security holders (or otherwise provide in
         accordance with Section 11(a) of the Securities Act) an earnings
         statement satisfying the provisions of Section 11(a) of the Securities
         Act and meeting the requirements of Rule 158 under the Securities Act.

                  (m) The Company shall cause the Indenture to be qualified
         under the Trust Indenture Act of 1939, as amended, in a timely manner
         and containing such changes, if any, as shall be necessary for such
         qualification. In the event that such qualification would require the
         appointment of a new trustee under the Indenture, the Company shall
         appoint a new trustee thereunder pursuant to the applicable provisions
         of the Indenture.

                  (n) The Company may require each Holder of Securities to be
         sold pursuant to the Shelf Registration Statement to furnish to the
         Company such information regarding the Holder and the distribution of
         the Securities as the Company may from time to time

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         reasonably require for inclusion in the Shelf Registration Statement,
         and the Company may exclude from such registration the Securities of
         any Holder that unreasonably fails to furnish such information within a
         reasonable time after receiving such request.

                  (o) The Company shall enter into such customary agreements
         (including, if requested, an underwriting agreement in customary form)
         and take all such other action, if any, as any Holder of the Securities
         may reasonably request in order to facilitate the disposition of the
         Securities pursuant to any Shelf Registration.

                  (p) In the case of any Shelf Registration, the Company shall
         (i) make reasonably available for inspection by the Holders of the
         Securities, any underwriter participating in any disposition pursuant
         to the Shelf Registration Statement and any attorney, accountant or
         other agent retained by the Holders of the Securities or any such
         underwriter all relevant financial and other records, pertinent
         corporate documents and properties of the Company and (ii) cause the
         Company's officers, directors, employees, accountants and auditors to
         supply all relevant information reasonably requested by the Holders of
         the Securities or any such underwriter, attorney, accountant or agent
         in connection with the Shelf Registration Statement, in each case, as
         shall be reasonably necessary to enable such persons to conduct a
         reasonable investigation within the meaning of Section 11 of the
         Securities Act; provided, however, that the foregoing inspection and
         information gathering shall be coordinated by the Initial Purchaser for
         itself and on behalf of the other parties, by one counsel designated by
         and on behalf of such other parties as described in Section 4 hereof;
         provided further, however, that any information that is designated in
         writing by the Company, in good faith, as confidential at the time of
         delivery of such information shall be kept confidential by the Holders
         or any such underwriter, attorney, accountant or other agent, unless
         such disclosure is made in connection with a court proceeding or
         required by law, or such information is or becomes available to the
         public generally or through a third person without, to the knowledge of
         any recipient of confidential information, an accompanying obligation
         of confidentiality or is independently developed.

                  (q) In the case of any Shelf Registration, the Company, if
         requested by any Holder of Securities covered thereby, shall cause (i)
         its counsel (including both staff counsel and outside counsel, with the
         overall coverage of such opinions allocated between them in a customary
         manner) to deliver opinions and updates thereof relating to the
         Securities in customary form addressed to such Holders and the managing
         underwriters, if any, thereof and dated, in the case of the initial
         opinions, the effective date of such Shelf Registration Statement (it
         being agreed that the matters to be covered by such opinions shall
         include, without limitation, the due incorporation and good standing of
         the Company and its significant subsidiaries; the qualification of the
         Company and its subsidiaries to transact business as foreign
         corporations; the due authorization, execution and delivery of the
         relevant agreement of the type referred to in Section 3(o) hereof; the
         due authorization, execution, authentication and issuance, and the
         validity and enforceability, of the applicable Securities; the absence
         of material legal or governmental proceedings involving the Company and
         its subsidiaries; the absence of governmental approvals required to be
         obtained in connection with the Shelf Registration Statement, the
         offering and sale of the applicable Securities, or any agreement of the
         type

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         referred to in Section 3(o) hereof; the compliance as to form of such
         Shelf Registration Statement and any documents incorporated by
         reference therein and of the Indenture with the requirements of the
         Securities Act and the Trust Indenture Act, respectively; and, as of
         the date of the opinion and as of the effective date of the Shelf
         Registration Statement or most recent post-effective amendment thereto,
         as the case may be, the absence from such Shelf Registration Statement
         and the prospectus included therein, as then amended or supplemented,
         and from any documents incorporated by reference therein of an untrue
         statement of a material fact or the omission to state therein a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading (in the case of any such documents,
         in the light of the circumstances existing at the time that such
         documents were filed with the Commission under the Exchange Act); (ii)
         its officers to execute and deliver all customary documents and
         certificates and updates thereof requested by any underwriters of the
         applicable Securities and (iii) its independent public accountants and
         the independent public accountants with respect to any other entity for
         which financial information is provided in the Shelf Registration
         Statement to provide to the selling Holders of the applicable
         Securities and any underwriter therefor a comfort letter in customary
         form and covering matters of the type customarily covered in comfort
         letters in connection with underwritten offerings, subject to receipt
         of appropriate documentation as contemplated, and only if permitted, by
         Statement of Auditing Standards No. 72.

                  (r) In the case of the Registered Exchange Offer, if requested
         by the Initial Purchaser or any known Participating Broker-Dealer, the
         Company shall cause (i) its counsel to deliver to the Initial Purchaser
         or such Participating Broker-Dealer signed opinions in the forms set
         forth in Section 6(c)(i)-(iii) of the Purchase Agreement with such
         changes as are customary in connection with the preparation of a
         Registration Statement and (ii) its independent public accountants and
         the independent public accountants with respect to any other entity for
         which financial information is provided in the Registration Statement
         to deliver to the Initial Purchaser or such Participating Broker-Dealer
         a comfort letter, in customary form, meeting the requirements as to the
         substance thereof as set forth in Section 6(a) of the Purchase
         Agreement, with appropriate date changes.

                  (s) If a Registered Exchange Offer or a Private Exchange is to
         be consummated, upon delivery of the Initial Securities by Holders to
         the Company (or to such other Person as directed by the Company) in
         exchange for the Exchange Securities or the Private Exchange
         Securities, as the case may be, the Company shall mark, or caused to be
         marked, on the Initial Securities so exchanged that such Initial
         Securities are being canceled in exchange for the Exchange Securities
         or the Private Exchange Securities, as the case may be; in no event
         shall the Initial Securities be marked as paid or otherwise satisfied.

                  (t) The Company will use its best efforts to (a) if the
         Initial Securities have been rated prior to the initial sale of such
         Initial Securities, confirm such ratings will apply to the Securities
         covered by a Registration Statement, or (b) if the Initial Securities
         were not previously rated, cause the Securities covered by a
         Registration Statement to be rated with the appropriate rating
         agencies, if so requested by Holders of a majority in

                                       11
<PAGE>   12

         aggregate principal amount of Securities covered by such Registration
         Statement, or by the managing underwriters, if any.

                  (u) In the event that any broker-dealer registered under the
         Exchange Act shall underwrite any Securities or participate as a member
         of an underwriting syndicate or selling group or "assist in the
         distribution" (within the meaning of the Conduct Rules (the "RULES") of
         the National Association of Securities Dealers, Inc. ("NASD")) thereof,
         whether as a Holder of such Securities or as an underwriter, a
         placement or sales agent or a broker or dealer in respect thereof, or
         otherwise, the Company will assist such broker-dealer in complying with
         the requirements of such Rules, including, without limitation, by (i)
         if such Rules, including Rule 2720, shall so require, engaging a
         "qualified independent underwriter" (as defined in Rule 2720) to
         participate in the preparation of the Registration Statement relating
         to such Securities, to exercise usual standards of due diligence in
         respect thereto and, if any portion of the offering contemplated by
         such Registration Statement is an underwritten offering or is made
         through a placement or sales agent, to recommend the yield of such
         Securities, (ii) indemnifying any such qualified independent
         underwriter to the extent of the indemnification of underwriters
         provided in Section 5 hereof and (iii) providing such information to
         such broker-dealer as may be required in order for such broker-dealer
         to comply with the requirements of the Rules.

                  (v) The Company shall use its best efforts to take all other
         steps necessary to effect the registration of the Securities covered by
         a Registration Statement contemplated hereby.

         4. Registration Expenses. (a) All expenses incident to the Company's
performance of and compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement is ever filed or becomes
effective, including without limitation;

                           (i) all registration and filing fees and expenses;

                           (ii) all fees and expenses of compliance with federal
                  securities and state "blue sky" or securities laws;

                           (iii) all expenses of printing (including printing
                  certificates for the Securities to be issued in the Registered
                  Exchange Offer and the Private Exchange and printing of
                  Prospectuses), messenger and delivery services and telephone;

                           (iv) all fees and disbursements of counsel for the
                  Company;

                           (v) all application and filing fees in connection
                  with listing the Exchange Securities on a national securities
                  exchange or automated quotation system pursuant to the
                  requirements hereof; and

                           (vi) all fees and disbursements of independent
                  certified public accountants of the Company (including the
                  expenses of any special audit and comfort letters required by
                  or incident to such performance).

                                       12
<PAGE>   13

The Company will bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses
of any person, including special experts, retained by the Company.

         (b) In connection with any Registration Statement required by this
Agreement, the Company will reimburse the Initial Purchaser and the Holders of
Transfer Restricted Securities who are tendering Initial Securities in the
Registered Exchange Offer and/or selling or reselling Securities pursuant to the
"Plan of Distribution" contained in the Exchange Offer Registration Statement or
the Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Hughes Hubbard & Reed
LLP unless another firm shall be chosen by the Holders of a majority in
principal amount of the Transfer Restricted Securities for whose benefit such
Registration Statement is being prepared.

         5. Indemnification. (a) The Company agrees to indemnify and hold
harmless each Holder of the Securities, any Participating Broker-Dealer and each
person, if any, who controls such Holder or such Participating Broker-Dealer
within the meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer and such controlling persons are referred to
collectively as the "INDEMNIFIED PARTIES") from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each
Indemnified Party may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus relating to a
Shelf Registration, 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, and shall reimburse, as
incurred, the Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action in respect thereof; provided, however, that
(i) the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration in reliance
upon and in conformity with written information pertaining to such Holder and
furnished to the Company by or on behalf of such Holder specifically for
inclusion therein and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any preliminary prospectus relating
to a Shelf Registration Statement, the indemnity agreement contained in this
subsection (a) shall not inure to the benefit of any Holder or Participating
Broker-Dealer from whom the person asserting any such losses, claims, damages or
liabilities purchased the Securities concerned, to the extent that a prospectus
relating to such Securities was required to be delivered by such Holder or
Participating Broker-Dealer under the Securities Act in connection with such
purchase and any such loss, claim, damage or liability of such Holder or
Participating Broker-Dealer results from the fact that there was not sent or
given to such person, at or prior to the written confirmation of the sale of
such Securities to such person, a copy of the final prospectus if the Company
had previously furnished copies thereof to such Holder or Participating
Broker-Dealer; provided

                                       13
<PAGE>   14

further, however, that this indemnity agreement will be in addition to any
liability which the Company may otherwise have to such Indemnified Party. The
Company shall also indemnify underwriters, their officers and directors and each
person who controls such underwriters within the meaning of the Securities Act
or the Exchange Act to the same extent as provided above with respect to the
indemnification of the Holders of the Securities if requested by such Holders.

         (b) Each Holder of the Securities, severally and not jointly, will
indemnify and hold harmless the Company and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act from
and against any losses, claims, damages or liabilities or any actions in respect
thereof, to which the Company or any such controlling person may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in
each case only to the extent that the untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with
written information pertaining to such Holder and furnished to the Company by or
on behalf of such Holder specifically for inclusion therein; and, subject to the
limitation set forth immediately preceding this clause, shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by the
Company or any such controlling person in connection with investigating or
defending any loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Company or any of its controlling persons.

         (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to Section 5(a) or 5(b), such person (the "indemnified party")
shall promptly notify the person against whom such indemnity may be sought (the
"indemnifying party") in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and
disbursements of such counsel related to such proceeding. In any such
proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for (a) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all such indemnified parties and that all
such fees and expenses shall be reimbursed as they are incurred. Such firm shall
be designated in writing by a majority of the Holders, in the case of parties
indemnified pursuant to Section 5(a), and by the Guarantor, in the case of
parties indemnified pursuant to Section 7(b). The indemnifying party shall not
be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the

                                       14
<PAGE>   15

plaintiff, the indemnifying party agrees to indemnify the indemnified party from
and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by the second and third
sentences of this paragraph, the indemnifying party agrees that it shall be
liable for any settlement of any proceeding effected without its written consent
if (i) such settlement is entered into more than 30 days after receipt by such
indemnifying party of the aforesaid request and (ii) such indemnifying party
shall not have reimbursed the indemnified party in accordance with such request
prior to the date of such settlement. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened action in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such
indemnified party unless such settlement includes an unconditional release of
such indemnified party from all liability on any claims that are the subject
matter of such action, and does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.

         (d) If the indemnification provided for in this Section 5 is
unavailable or insufficient to hold harmless an indemnified party under
subsections (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect
the relative benefits received by the indemnifying party or parties on the one
hand and the indemnified party on the other from the exchange of the Securities,
pursuant to the Registered Exchange Offer, or (ii) if the allocation provided by
the foregoing clause (i) is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the indemnifying party or
parties on the one hand and the indemnified party on the other in connection
with the statements or omissions that resulted in such losses, claims, damages
or liabilities (or actions in respect thereof) as well as any other relevant
equitable considerations. The relative fault of the parties shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
such Holder or such other indemnified party, as the case may be, on the other,
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid by
an indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which is
the subject of this subsection (d). Notwithstanding any other provision of this
Section 5(d), the Holders of the Securities shall not be required to contribute
any amount in excess of the amount by which the net proceeds received by such
Holders from the sale of the Securities pursuant to a Registration Statement
exceeds the amount of damages which such Holders have otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. For purposes
of this paragraph (d), each person, if any, who controls such indemnified party
within the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such

                                       15
<PAGE>   16

indemnified party and each person, if any, who controls the Company within the
meaning of the Securities Act or the Exchange Act shall have the same rights to
contribution as the Company.

         (e) The agreements contained in this Section 5 shall survive the sale
of the Securities pursuant to a Registration Statement and shall remain in full
force and effect, regardless of any termination or cancellation of this
Agreement or any investigation made by or on behalf of any indemnified party.

         6. Liquidated Damages Under Certain Circumstances. (a) Liquidated
damages (the "LIQUIDATED DAMAGES") with respect to the Securities shall be
assessed as follows if any of the following events occur (each such event in
clauses (i) through (iv) below being herein called a "REGISTRATION DEFAULT"):

         (i)      any Registration Statement required by this Agreement is not
                  filed with the Commission on or prior to the applicable Filing
                  Deadline;

         (ii)     any Registration Statement required by this Agreement is not
                  declared effective by the Commission on or prior to the
                  applicable Effectiveness Deadline;

         (iii)    the Registered Exchange Offer has not been consummated on or
                  prior to the Consummation Deadline; or

         (iv)     any Registration Statement required by this Agreement has been
                  declared effective by the Commission but (A) such Registration
                  Statement thereafter ceases to be effective or (B) such
                  Registration Statement or the related prospectus ceases to be
                  usable in connection with resales of Transfer Restricted
                  Securities during the periods specified herein because either
                  (1) any event occurs as a result of which the related
                  prospectus forming part of such Registration Statement would
                  include any untrue statement of a material fact or omit to
                  state any material fact necessary to make the statements
                  therein in the light of the circumstances under which they
                  were made not misleading, or (2) it shall be necessary to
                  amend such Registration Statement or supplement the related
                  prospectus, to comply with the Securities Act or the Exchange
                  Act or the respective rules thereunder.

Each of the foregoing will constitute a Registration Default whatever the reason
for any such event and whether it is voluntary or involuntary or is beyond the
control of the Company or pursuant to operation of law or as a result of any
action or inaction by the Commission .

         Liquidated Damages shall be payable on the Securities over and above
the interest set forth in the title of the Securities from and including the
date on which any such Registration Default shall occur to but excluding the
date on which all such Registration Defaults have been cured, in an amount equal
to $0.05 per week per $1,000 in principal amount of Transfer Restricted
Securities held by a Holder (the "LIQUIDATED DAMAGES RATE") for each week or
portion thereof during the first 90-day period immediately following the
occurrence of such Registration Default. The Liquidated Damages Rate shall
increase by an additional $0.05 per week per $1,000 in principal amount of
Transfer

                                       16
<PAGE>   17

Restricted Securities with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum Liquidated Damages Rate
of $0.25 per week per $1,000 in principal amount of Transfer Restricted
Securities. The Company shall in no event be required to pay Liquidated Damages
for more than one Registration Default at any given time.

         (b) A Registration Default referred to in Section 6(a)(iv) hereof shall
be deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with respect
to the Company that would need to be described in such Shelf Registration
Statement or the related prospectus and (ii) in the case of clause (y), the
Company is proceeding promptly and in good faith to amend or supplement such
Shelf Registration Statement and related prospectus to describe such events;
provided, however, that in any case if such Registration Default occurs for a
continuous period in excess of 30 days, Liquidated Damages shall be payable in
accordance with the above paragraph from the day such Registration Default
occurs until such Registration Default is cured.

         (c) Any amounts of Liquidated Damages due pursuant to Section 6(a) will
be payable in cash on the regular interest payment dates with respect to the
Securities. The amount of Liquidated Damages will be determined by multiplying
the applicable Liquidated Damages Rate by the principal amount of the Securities
and further multiplied by the number of weeks (or portion thereof) such
Liquidated Damages Rate was applicable during such period.

         (d) "TRANSFER RESTRICTED SECURITIES" means each Security until (i) the
date on which such Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the Registered
Exchange Offer, (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of an Initial Security for an Exchange Security, the date on
which such Exchange Security is sold to a purchaser who receives from such
broker-dealer on or prior to the date of such sale a copy of the prospectus
contained in the Exchange Offer Registration Statement, (iii) the date on which
such Security has been effectively registered under the Securities Act and
disposed of in accordance with the Shelf Registration Statement or (iv) the date
on which such Security is distributed to the public pursuant to Rule 144 under
the Securities Act or is saleable pursuant to Rule 144(k) under the Securities
Act.

         7. Rules 144 and 144A. The Company shall use its best efforts to file
the reports required to be filed by it under the Securities Act and the Exchange
Act in a timely manner and, if at any time the Company is not required to file
such reports, it will, upon the request of any Holder of Securities, make
publicly available other information so long as necessary to permit sales of
their securities pursuant to Rules 144 and 144A. The Company covenants that it
will take such further action as any Holder of Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4)). The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the
Company by the Initial Purchaser upon request. Upon the request of any Holder of
Initial Securities, the Company shall deliver to such Holder a written statement
as to whether it has complied with such requirements.

                                       17
<PAGE>   18

Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to
require the Company to register any of its securities pursuant to the Exchange
Act.

         8. Underwritten Registrations. If any of the Transfer Restricted
Securities covered by any Shelf Registration are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers
that will administer the offering ("MANAGING UNDERWRITERS") will be selected by
the Holders of a majority in aggregate principal amount of such Transfer
Restricted Securities to be included in such offering.

         No person may participate in any underwritten registration hereunder
unless such person (i) agrees to sell such person's Transfer Restricted
Securities on the basis reasonably provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (ii)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements.

         9. Miscellaneous.

         (a) Remedies. The Company acknowledges and agrees that any failure by
the Company to comply with its obligations under Section 1 and 2 hereof may
result in material irreparable injury to the Initial Purchaser or the Holders
for which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchaser or any Holder may obtain such relief as may be
required to specifically enforce the Company's obligations under Sections 1 and
2 hereof. The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

         (b) No Inconsistent Agreements. The Company will not on or after the
date of this Agreement enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company represents and
warrants that the rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of
the Company's securities under any agreement in effect on the date hereof.

         (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, except by the Company and the written
consent of the Holders of a majority in principal amount of the Securities
affected by such amendment, modification, supplement, waiver or consents;
provided, however, that the provisions of Section 6 of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions thereof may not be given, without the written consent of the
Holders of at least two-thirds in principal amount of the Securities affected by
such amendment, modification, supplement, waiver or consents.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first-class mail,
facsimile transmission, or air courier which guarantees overnight delivery:

                                       18
<PAGE>   19

                  (1)      if to a Holder of the Securities, at the most current
address given by such Holder to the Company.

                  (2)      if to the Initial Purchaser;

                           Credit Suisse First Boston Corporation
                           Eleven Madison Avenue
                           New York, NY 10010-3629
                           Fax No.:  (212) 325-8278
                           Attention:  Transactions Advisory Group

         with a copy to:

                           Hughes Hubbard & Reed LLP
                           One Battery Park Plaza
                           New York, New York 10004
                           Fax No.:  (212) 422-4726
                           Attention:  Edward S. Davis

                  (3)      if to the Company, at its address as follows:

                           Anadarko Petroleum Corporation
                           17001 Northchase Drive
                           Houston, Texas 77060
                           Fax No.:  (281) 875-2287
                           Attention:  Suzanne Suter

         with a copy to:

                           Andrews & Kurth L.L.P.
                           4200 Chase Tower
                           Houston, Texas 77002
                           Fax No.:  (713) 220-4285
                           Attention:  Michael O'Leary

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
is acknowledged by recipient's facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

         (e) Third Party Beneficiaries. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchaser, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder.

                                       19
<PAGE>   20

         (f) Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns.

         (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS.

         (j) Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

         (k) Securities Held by the Company. Whenever the consent or approval of
Holders of a specified percentage of principal amount of Securities is required
hereunder, Securities held by the Company or its affiliates (other than
subsequent Holders of Securities if such subsequent Holders are deemed to be
affiliates solely by reason of their holdings of such Securities) shall not be
counted in determining whether such consent or approval was given by the Holders
of such required percentage.

         (l) Agent for Service; Submission to Jurisdiction; Waiver of
Immunities. By the execution and delivery of this Agreement, each of the Issuer
and the Guarantor (i) acknowledges that it has, by separate written instrument,
irrevocably designated and appointed CT Corporation System (and any successor
entity), as its authorized agent upon which process may be served in any suit or
proceeding arising out of or relating to this Agreement that may be instituted
in any federal or state court in the State of New York or brought under federal
or state securities laws, and acknowledges that CT Corporation System has
accepted such designation, (ii) submits to the nonexclusive jurisdiction of any
such court in any such suit or proceeding, and (iii) agrees that service of
process upon CT Corporation System and written notice of such service to the
Issuer and the Guarantor shall be deemed in every respect effective service of
process upon it in any such suit or proceeding. The Issuer and the Guarantor
further agree to take any and all action, including the execution and filing of
any and all such documents and instruments, as may be necessary to continue such
designation and appointment of CT Corporation System in full force and effect so
long as any of the Securities shall be outstanding. To the extent that the
Issuer and the Guarantor may acquire any immunity from jurisdiction of any court
or from any legal process (whether through service of notice, attachment prior
to judgment, attachment in aid of execution, execution or otherwise) with
respect to itself or its property, it hereby irrevocably waives such immunity in
respect of this Agreement, to the fullest extent permitted by law.

             [REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

                                       20
<PAGE>   21

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Guarantor a counterpart hereof,
whereupon this instrument, along with all counterparts, will become a binding
agreement among the Initial Purchaser, the Issuer and the Guarantor in
accordance with its terms.

                                   Very truly yours,

                                   ANADARKO FINANCE COMPANY

                                   by

                                              /s/ ALBERT L. RICHEY
                                           -------------------------------------
                                           Name:  Albert L. Richey
                                           Title: Vice President and Treasurer

                                   ANADARKO PETROLEUM CORPORATION

                                   by

                                               /s/ ALBERT L. RICHEY
                                           -------------------------------------
                                           Name:  Albert L. Richey
                                           Title: Vice President and Treasurer

The foregoing Registration
Rights Agreement is hereby confirmed
and accepted as of the date first
above written.

CREDIT SUISSE FIRST BOSTON CORPORATION

by
                /s/ ROME ARNOLD
         ------------------------------------------
         Name:  Rome Arnold
         Title: Managing Director

                                       21
<PAGE>   22

                                                                         ANNEX A

         Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined herein), it
will make this Prospectus available to any broker-dealer for use in connection
with any such resale. See "Plan of Distribution."

                                       22
<PAGE>   23

                                                                         ANNEX B

         Each broker-dealer that receives Exchange Securities for its own
account in exchange for Initial Securities, where such Initial Securities were
acquired by such broker-dealer as a result of market-making activities or other
trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities. See "Plan of
Distribution."

                                       23
<PAGE>   24

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

         Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a
result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date, it will make
this prospectus, as amended or supplemented, available to any broker-dealer for
use in connection with any such resale. In addition, until ,        200_ , all
dealers effecting transactions in the Exchange Securities may be required to
deliver a prospectus.(1)

         The Company will not receive any proceeds from any sale of Exchange
Securities by broker-dealers. Exchange Securities received by broker-dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities. Any broker-dealer that resells Exchange Securities that were
received by it for its own account pursuant to the Exchange Offer and any broker
or dealer that participates in a distribution of such Exchange Securities may be
deemed to be an "underwriter" within the meaning of the Securities Act and any
profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting
compensation under the Securities Act. The Letter of Transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act.

         For a period of 180 days after the Expiration Date the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any brokers
or dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.

--------
1. In addition, the legend required by Item 502(e) of Regulation S-K will appear
on the back cover page of the Exchange Offer prospectus.

                                       24
<PAGE>   25
                                                                         ANNEX D

[ ] CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

         Name:
                  --------------------------------------------
         Address:
                  --------------------------------------------

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                                       25<PAGE>   1
                                                                   EXHIBIT 10.38

                                                                  EXECUTION COPY

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

                           PURCHASE AND SALE AGREEMENT

                                     BETWEEN

                                   ENRON CORP.

                                       AND

                           EOTT ENERGY PARTNERS, L.P.

                               DATED JUNE 29, 2001

--------------------------------------------------------------------------------
<PAGE>   2

                                TABLE OF CONTENTS

                                    ARTICLE I
                                  DEFINED TERMS
<TABLE>

<S>      <C>                                                                 <C>
1.1      Defined Terms.........................................................2
1.2      Construction..........................................................6

                                   ARTICLE II
                            ASSIGNMENT OF ASSETS AND
                            PAYMENT OF PURCHASE PRICE

2.1      Acquisition of MTBE Plant, Grid System and Dock Lease.................6
2.2      Payment of Purchase Price for Leased Property.........................7

                                   ARTICLE III
                     REPRESENTATIONS AND WARRANTIES OF EOTT

3.1      Organization, Standing and Authority..................................7
3.2      Authorization; Enforceability.........................................7
3.3      Governmental and Other Consents.......................................7

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF ENRON

4.1      Organization, Standing and Authority of the Enron Entities............8
4.2      Authorization; Enforceability.........................................8
4.3      Title to Assets.......................................................8
4.4      Litigation............................................................9
4.5      Compliance with Instruments...........................................9
4.6      Compliance with Laws..................................................9
4.7      Governmental and Other Consents......................................10
4.8      Contracts............................................................10
4.9      Employment and Labor Matters.........................................11
4.10     Conduct and Transactions.............................................11
4.11     Environmental Matters................................................11
4.12     Patents and Trademarks, etc..........................................12
4.13     Taxes................................................................12
4.14     Permits..............................................................12
4.15     Access...............................................................13
4.16     Zoning...............................................................13

                                    ARTICLE V
                       ADDITIONAL COVENANTS OF THE PARTIES

5.1      Purchase Price Allocation............................................13
5.2      Books and Records....................................................13
5.3      Use of Names.........................................................13
5.4      Tax Matters..........................................................14
5.5      Curative Action Regarding Title......................................14
5.6      Right of First Refusal...............................................14
</TABLE>

                                       i
<PAGE>   3

                                   ARTICLE VI
                            LIMITATION ON LIABILITIES

6.1      Limitation on Liabilities............................................15

                                   ARTICLE VII
                                 INDEMNIFICATION

7.1      INDEMNIFICATION BY EOTT..............................................15
7.2      INDEMNIFICATION BY ENRON.............................................16
7.3      Indemnifying and Indemnified Person..................................18
7.4      Notification of Claims by Third Parties; Right to Contest
           and Defend.........................................................19
7.5      Cooperation..........................................................19
7.6      Right to Participate.................................................19
7.7      Payments.............................................................20
7.8      Limitation on Claims.................................................20

                                  ARTICLE VIII
                         DISPUTE RESOLUTION; ARBITRATION

8.1      Dispute Resolution...................................................21
8.2      Mediation............................................................21
8.3      Arbitration..........................................................21

                                   ARTICLE IX
                                  MISCELLANEOUS

9.1      Further Cooperation..................................................23
9.2      Amendments and Waivers...............................................23
9.3      Expenses.............................................................23
9.4      Confidentiality......................................................24
9.5      Assignment and Binding Effect........................................24
9.6      Notices..............................................................24
9.7      Entire Agreement.....................................................25
9.8      Descriptive Headings.................................................25
9.9      Governing Law........................................................25
9.10     Counterparts.........................................................25
9.11     Severability.........................................................25
9.12     No Third Party Beneficiaries.........................................25

                                       ii

<PAGE>   4

                                    SCHEDULES

Schedule 4.3......         -        ASSETS
     Schedule 4.3(A)       -        Exceptions to Conveyances
     Schedule 4.3(B)       -        Rights to Acquire
     Schedule 4.3(C)       -        Consents for R-O-W
     Schedule 4.3(D)       -        Expired Permits
     Schedule 4.3(E)       -        Excluded Assets
     Schedule 4.3(F)       -        Special Conditions
     Schedule 4.3(G)       -        Notice Required
     Schedule 4.3(H)       -        Liens

Schedule 4.4               -        Pending Litigation

Schedule 4.5               -        Compliance with Instruments

Schedule 4.6               -        Compliance with Law

Schedule 4.8               -        CONTRACTS
     Schedule 4.8(A)       -        Contracts Being Conveyed
     Schedule 4.8(B)       -        Contracts Requiring Consent
     Schedule 4.8(C)       -        Contract Exceptions

Schedule 4.10              -        Conduct of Business

Schedule 4.11              -        Environmental Matters

Schedule 4.12              -        Patents and Trademarks

                                      iii
<PAGE>   5

                           PURCHASE AND SALE AGREEMENT

         THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is entered into on
June 29, 2001 by and between Enron Corp., an Oregon corporation ("Enron"), and
EOTT Energy Partners, L.P., a Delaware limited partnership ("EOTT"). Enron and
EOTT are sometimes referred to herein individually as a "Party" and collectively
as the "Parties."

                                    RECITALS:

         WHEREAS, Enron is the indirect owner of all the issued and outstanding
shares of EGP Fuels Company, a Delaware corporation ("EGP Fuels"), which owns or
leases and operates the following facilities, which are described generally on
Exhibit A hereto: (a) a facility for the production of MTBE and related
facilities at Morgan's Point, Texas (the "MTBE Plant"), (b) a natural gas
liquids underground storage facility at Mont Belvieu, Texas (the "Mont Belvieu
Facility"), and (c) a pipeline system for the transportation of natural gas
liquids and other products to and from the Mont Belvieu Facility and the MTBE
Plant and other distribution points (the "Grid System");

         WHEREAS, Enron is the owner of all the issued and outstanding shares of
Enron Ventures Corp., a Delaware corporation ("EVC"), which is a party to a
lease of barge dock facilities that are described generally on Exhibit A hereto
and that are used by EGP Fuels in connection with the MTBE Plant (the "Dock
Lease");

         WHEREAS, EOTT is the owner, directly or indirectly, of all of the
outstanding partnership interests in EOTT Energy Liquids, L.P., a Delaware
limited partnership ("EOTT Energy Liquids");

         WHEREAS, EOTT desires that EOTT Energy Liquids acquire from EGP Fuels,
and Enron desires that EGP Fuels assign to EOTT Energy Liquids, all of EGP
Fuels' interest in the MTBE Plant and the Grid System and certain other assets
for the consideration, upon the terms and conditions and in reliance upon the
representations, warranties and covenants set forth in this Agreement;

         WHEREAS, EOTT and Enron desire that EVC assign to EOTT Energy Liquids,
and EOTT Energy Liquids assume EVC's obligations under, the Dock Lease;

         WHEREAS, EVC has an option to purchase certain storage and pipeline
assets (the "Leased Property", which term includes the Mont Belvieu Facility and
certain other assets operated by EGP Fuels) pursuant to the Amended and Restated
Lease [Mont Belvieu] dated December 27, 1995 between State Street Bank and Trust
Company of Connecticut, National Association, as trustee for the 1991 ENRON/NGL
Trust, as lessor (the "Lessor"), and EVC, as lessee, as amended by the Master
Amendment dated as of December 7, 2000 among EVC, State Street Bank and Trust
Company, as collateral trustee (the "Collateral Trustee") and others;

         WHEREAS, EOTT desires that EOTT Energy Liquids acquire the Leased
Property and has instructed the Lessor and the Collateral Trustee to convey
title to the Leased Property to EOTT Energy Liquids; and EOTT is willing to pay
the Lessor cash in consideration for conveyance of the Leased Property to EOTT
Energy Liquids;

<PAGE>   6

         WHEREAS, EOTT Energy Liquids will enter into certain other agreements
simultaneously with the execution and delivery of this Agreement;

         NOW, THEREFORE, in consideration of the mutual benefits to be derived
from this Agreement and of the representations, warranties, conditions,
covenants and agreements hereinafter contained, the Parties hereby agree as
follows:

                                   ARTICLE I.
                                  DEFINED TERMS

         1.1 Defined Terms. The following capitalized terms when used in this
Agreement shall have the meanings set forth below for such terms (with terms
defined in the singular having the corresponding meaning when used in the plural
and vice versa):

         "2001 Excess Value" has the meaning set forth in Section 7.2(b).

         "AAA" has the meaning set forth in Section 8.2.

         "Affiliate" means, with respect to any Person, any other Person that
possesses, directly or indirectly, through one or more intermediaries:

                  (a) if such Person is a corporation, fifty percent (50%) or
         more of the outstanding voting securities thereof; (ii) if such Person
         is a limited liability company, partnership or venture, the right to
         fifty percent (50%) or more of the distributions therefrom (including
         liquidating distributions); (iii) if such Person is a trust or estate,
         including a business trust, fifty percent (50%) or more of the
         beneficial interest therein; and (iv) if such Person is another entity,
         fifty percent (50%) or more of the economic or beneficial interest
         therein; or

                  (b) the power or authority, through the ownership of voting
         securities, by contract or otherwise, to exercise a controlling
         influence over the management of such Person.

Such Person shall also be deemed to be an Affiliate of such other Person and any
Affiliate of such other Person.

         "Agreement" has the meaning set forth in the introductory paragraph.

         "Arbitration Rules" has the meaning set forth in Section 8.3(a).

         "Assets" means the MTBE Plant, the Mont Belvieu Facility, the Grid
System, the Dock Lease, the Contracts, all Intellectual Property Rights
necessary for the ownership and operation of the MTBE Plant, the Mont Belvieu
Facility and the Grid System and all materials and supplies and other current
assets of EGP Fuels (other than inventories, receivables, cash and cash
equivalents and deferred tax items).

         "CERCLA" has the meaning set forth in Section 4.11.

                                      2
<PAGE>   7

         "Code" means the Internal Revenue Code of 1986, as amended, and any
successor statute.

         "Collateral Trustee" has the meaning set forth in the recitals.

         "Confidential Information" has the meaning set forth in Section 9.4(b).

         "Contracts" has the meaning set forth in Section 4.8(a).

         "Conveyances" means (a) the instruments of conveyance pursuant to which
Enron has caused EGP Fuels to convey, transfer, assign and deliver to EOTT
Energy Liquids the Assets other than the Leased Property and the Dock Lease and
EOTT has caused EOTT Energy Liquids to assume certain of EGP Fuels' obligations,
(b) the instrument pursuant to which EVC has assigned the Dock Lease to EOTT
Energy Liquids, and EOTT Energy Liquids has assumed EVC's obligations under the
Dock Lease, and (c) the instruments of conveyance pursuant to which the Lessor
and the Collateral Trustee have conveyed title to the Leased Property to EOTT
Energy Liquids.

         "Damages" has the meaning set forth in Section 7.1.

         "Dispute" has the meaning set forth in Section 8.1.

         "Dock Lease" has the meaning set forth in the recitals.

         "EGP Fuels" has the meaning set forth in the recitals.

         "Enron" has the meaning set forth in the introductory paragraph.

         "Enron Entities" means Enron, EGP Fuels and EVC.

         "Environmental Laws" has the meaning set forth in Section 4.11.

         "EOTT" has the meaning set forth in the introductory paragraph.

         "EOTT Energy Liquids" has the meaning set forth in the recitals.

          "EVC" has the meaning set forth in the recitals.

         "General Partner" means EOTT Energy Corp., a Delaware corporation.

         "Good and Defensible Title" shall mean ownership of property that (i)
(a) with respect to easements and rights-of-way, was granted or assigned to an
Enron Entity or a successor in title under a valid instrument that is in full
force and effect and unexpired, that covers the land on which constructed
pipeline(s), if any, are located, that can be deduced from applicable state or
county records and that includes all title necessary to operate the Assets, if
any, located on such easements and rights-of-way, or (b) with respect to
personal property, is in the possession of control of an Enron Entity, (ii) is
not held in violation of any applicable Law, which violation would have a
reasonable likelihood of resulting in impairment or loss of title, (iii) is such
that a reasonable and prudent Person engaged in the business of the ownership
and operation of

                                       3

<PAGE>   8

pipeline systems, storage facilities or MTBE manufacturing facilities with the
knowledge of all the facts and their legal bearing would be willing to accept,
and (iv) is free and clear from Liens and encumbrances (except Permitted
Encumbrances).

         "Good and Indefeasible Title" shall mean title that (i) consists of fee
simple ownership or of 100% leasehold interest under a lease from the fee simple
owner(s) that is valid and in good standing, (ii) can be deduced from the
applicable state or county records, and (iii) is free and clear from defects in
title and Liens and encumbrances (except Permitted Encumbrances).

         "Governmental Authority" or "Governmental" means a federal, state,
local, municipal or foreign governmental or regulatory authority; any executive,
administrative, legislative or other governing body of any of the foregoing, or
a commission, committee or council of any of the foregoing; and any court or
other judicial body.

         "Grid System" has the meaning set forth in the recitals.

         "Indemnifying Party" has the meaning set forth in Section 7.3.

         "Indemnified Person" has the meaning set forth in Section 7.3.

         "Intellectual Property Rights" has the meaning set forth in Section
4.12.

         "Knowledge of Enron" means the knowledge that the officers and
directors of EGP Fuels and the key operational personnel listed on Exhibit B
will be deemed to have if (a) any of such individuals is actually aware of such
fact or other matter or (b) a prudent individual could be expected to discover
or otherwise become aware of such fact or other matter in the course of
conducting a reasonable investigation concerning the existence or non-existence
of such fact or other matter; provided, however, that no such individual will be
required to make any inquiry of any person not employed by Enron or an Affiliate
of Enron with respect to such fact or other matter, and no such individual will
be required to perform any investigation concerning the existence or
non-existence of any fact or other matter outside of such person's area of
responsibility with EGP Fuels.

         "Law" means any applicable constitutional provision, statute, act, code
(including the Code), law, regulation, rule, ordinance, order, decree, ruling,
resolution, judgment, or interpretative or advisory opinion or letter or
decision of a Governmental Authority having valid jurisdiction.

         "Leased Property" has the meaning set forth in the recitals.

         "Lessor" has the meaning set forth in the recitals.

         "Liability" means any debt, obligation, duty or liability of any nature
(including any undisclosed, unfixed, unliquidated, unsecured, unmatured,
unaccrued, unasserted, contingent, conditional, inchoate, implied, vicarious,
joint, several or secondary liability), regardless of whether such debt,
obligation, duty or liability would be required to be disclosed on a balance
sheet prepared in accordance with generally accepted accounting principles.

                                       4
<PAGE>   9
         "Lien" means any lien, claim, pledge, mortgage, title defect, charge,
security interest, restriction or other encumbrance of any nature whatsoever.

         "Material" and "Materially" means information that materially and
adversely affects, or is reasonably likely in the future to materially and
adversely affect, the ownership, value or operation of the Assets, considered as
a whole.

         "Mont Belvieu Facility" has the meaning set forth in the recitals.

         "Morgan's Point Claims" has the meaning set forth in Section 7.2(b).

         "MTBE" means methyl tertiary butyl ether.

         "MTBE Plant" has the meaning set forth in the recitals.

         "NOx" has the meaning set forth in Section 7.2(c).

         "OSHA" has the meaning set forth in Section 4.11.

         "Party" or "Parties" has the meaning set forth in the introductory
paragraph.

         "Permits" means any and all permits, franchises, certificates,
licenses, authorizations, approvals, registrations, legal status, orders or
other approvals or licenses (a) under any (i) Law or (ii) contract with any
Person, or (b) granted by any Governmental Authority.

         "Permitted Encumbrances" means (i) the Liens set forth on Schedule 4.3,
(ii) statutory Liens for obligations not yet due and payable, (iii) all rights
to notice in connection with the sale or assignment of easements or
rights-of-way if the same are of the type customarily made subsequent to a sale
or conveyance, (iv) concurrent easements, rights-of-way, covenants or permits
which do not interfere with or detract from the operation or value of the
properties, (v) rights of reassignment, to the extent any exist on the date of
this Agreement, upon the surrender or expiration of any instrument, (vi)
purchase money mortgages and security interests on leased equipment set forth on
Schedule 4.3, and (vii) Liens for current taxes, assessments and other
Governmental charges not yet due and payable.

         "Person" means a natural person, a corporation, a limited liability
company, a joint stock company, a partnership, a limited partnership, a joint
venture, a trust, an estate, an unincorporated organization, a Governmental
Authority, or another entity.

         "RCRA" has the meaning set forth in Section 4.11.

         "Securities Act" means the Securities Act of 1933.

         "Special Provisions" has the meaning set forth in Section 8.3(b).

         "Taxes" means all taxes, however denominated, including any interest,
penalties or other additions to tax that may become payable in respect thereof,
imposed by any Governmental Authority, which taxes include all income or profits
taxes (including federal income taxes and

                                       5
<PAGE>   10

state income taxes), real property gains taxes, payroll and employee withholding
taxes, unemployment insurance taxes, social security taxes, sales and use taxes,
ad valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business
license taxes, occupation taxes, real and personal property taxes, stamp taxes,
environmental taxes, transfer taxes, workers' compensation, Pension Benefit
Guarantee Corporation premiums and other Governmental charges, and other
obligations of the same or of a similar nature as any of the foregoing, which
any Person is required to pay, withhold or collect.

         "Wastes" has the meaning set forth in Section 4.11.

         1.2 Construction. Unless otherwise provided or unless the context
clearly requires otherwise, all references to "paragraphs," "Articles" and
"Sections" are to paragraphs, Articles and Sections of this Agreement, and all
references to "Exhibits" and "Schedules" are to Exhibits and Schedules to this
Agreement, each of which is made a part of this Agreement and incorporated
herein for all purposes; references to any gender include all others if
applicable in the context; all uses of "include" or "including" mean "including,
without limitation" or "including, but not limited to;" and references to a
contract, agreement or other document mean that contract, agreement or document
as amended, modified or supplemented, as of the date hereof, if applicable.
References in this Agreement to action by EOTT to cause EOTT Energy Liquids to
take or refrain from taking action shall be deemed to refer to action that the
general partner of EOTT Energy Liquids will take in order to cause EOTT Energy
Liquids to take or refrain from taking action, it being understood that EOTT
controls EOTT Energy Liquids through its ownership and control of its general
partner and that EOTT's interest in EOTT Energy Liquids is a non-controlling
interest that carries with it no management rights.

                                   ARTICLE II
                            ASSIGNMENT OF ASSETS AND
                            PAYMENT OF PURCHASE PRICE

         2.1 Acquisition of MTBE Plant, Grid System and Dock Lease. On execution
and delivery of this Agreement, for the consideration hereinafter specified, in
reliance on the representations and warranties of EOTT herein and upon the terms
and subject to the conditions set forth in this Agreement, Enron has caused EGP
Fuels and EVC to convey, transfer, assign and deliver the MTBE Plant, the Grid
System, the Dock Lease, the Contracts, the Intellectual Property Rights and all
of the other Assets (other than the Leased Property) to EOTT Energy Liquids
pursuant to Conveyances, effective as of 11:59 p.m. on June 30, 2001. In
consideration of such conveyance, transfer, assignment and delivery and in
reliance upon the representations, warranties, covenants and agreements of Enron
set forth herein, EOTT has caused EOTT Energy Liquids to pay to EGP Fuels
$81,000,000 in cash in immediately available funds, and EOTT Energy Liquids has
executed and delivered Conveyances.

         2.2 Payment of Purchase Price for Leased Property. On execution and
delivery of this Agreement, for the consideration hereinafter specified, in
reliance on the representations and warranties of Enron herein and upon the
terms and subject to the conditions set forth in this Agreement, EOTT has paid
to the Lessor $36,000,000 in cash in immediately available funds in
consideration for the conveyance of the Leased Property to EOTT Energy Liquids.

                                       6
<PAGE>   11
                                  ARTICLE III
                     REPRESENTATIONS AND WARRANTIES OF EOTT

         Subject to the survival provisions set forth in Section 6.1, EOTT
hereby represents and warrants to Enron (with the understanding that Enron is
relying on such representations and warranties in entering into and performing
its obligations under this Agreement) that:

         3.1 Organization, Standing and Authority. EOTT is a limited partnership
duly organized, validly existing and in good standing under the Law of the State
of Delaware and has the requisite partnership power and authority to enter into
and perform its obligations under this Agreement and to consummate the
transactions contemplated hereby. EOTT Energy Liquids is a limited partnership
duly organized, validly existing and in good standing under the Law of the State
of Delaware and has the requisite partnership power and authority to enter into
and perform its obligations under the Conveyances to which it is a party. The
General Partner is a corporation duly organized, validly existing and in good
standing under the Law of the State of Delaware and has the requisite corporate
power and authority to enter into and perform its obligations as general partner
of EOTT.

         3.2 Authorization; Enforceability. The execution, delivery and
performance of this Agreement by EOTT have been duly and validly authorized by
all necessary partnership action on the part of EOTT. This Agreement has been
duly executed and delivered by EOTT and is a legal, valid and binding obligation
of EOTT, enforceable against it in accordance with its terms, except as the
enforcement hereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other Laws affecting or limiting the rights of
creditors generally. The execution, delivery and performance by EOTT Energy
Liquids of the Conveyances to which it is a party have been duly and validly
authorized by all necessary partnership action on the part of EOTT Energy
Liquids. The Conveyances to which EOTT Energy Liquids is a party have been duly
executed and delivered by EOTT Energy Liquids and are legal, valid and binding
obligations of EOTT Energy Liquids, enforceable against it in accordance with
their terms, except as the enforcement thereof may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other Laws affecting or
limiting the rights of creditors generally.

         3.3 Governmental and Other Consents. Except for such as have been
obtained, no authorization, consent or approval of, or registration,
qualification or filing with, any Governmental Authority or other Person is
required to be obtained by EOTT or any of its Affiliates in connection with the
execution, delivery and performance of this Agreement by EOTT or the execution,
delivery and performance by EOTT Energy Liquids of the Conveyances to which it
is a party.

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF ENRON

         Enron hereby represents and warrants to EOTT (with the understanding
that EOTT is relying on such representations and warranties in entering into and
performing its obligations under this Agreement) that:

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         4.1 Organization, Standing and Authority of the Enron Entities. Each of
the Enron Entities is duly organized, validly existing and in good standing
under the Laws of the jurisdiction of its organization. Enron has all requisite
power and authority to enter into and perform its obligations under this
Agreement and to consummate the transactions contemplated hereby, and each Enron
Entity has all requisite power and authority to enter into and perform its
obligations under the Conveyances to which it is a party and to consummate the
transactions contemplated thereby.

         4.2 Authorization; Enforceability. The execution, delivery and
performance of this Agreement by Enron have been duly and validly authorized by
all necessary action on the part of Enron. This Agreement has been duly executed
and delivered by Enron and is a legal, valid and binding obligation of Enron,
enforceable against it in accordance with its terms, except as the enforcement
hereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other Laws affecting or limiting the rights of creditors
generally. The execution, delivery and performance by each Enron Entity of the
Conveyances to which it is a party have been duly and validly authorized by all
necessary action on the part of such Enron Entity. The Conveyances to which each
Enron Entity is a party have been duly executed and delivered by such Enron
Entity and are legal, valid and binding obligations of such Enron Entity,
enforceable against it in accordance with their terms, except as the enforcement
thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other Laws affecting or limiting the rights of creditors
generally.

         4.3 Title to Assets. The Conveyances are sufficient to vest in EOTT
Energy Liquids Good and Indefeasible Title to all real property included in the
Assets (except for easements or rights-of-way) and Good and Defensible Title to
all easements, rights-of-way and personal property included in the Assets,
except as set forth on Schedule 4.3; provided that the Conveyances relating to
real property, easements and rights-of-way must be properly recorded in the
appropriate real estate records. The Conveyances relating to real property,
easements and rights-of-way are in proper form for recordation in the
appropriate real estate records. Except as set forth on Schedule 4.3 or as
otherwise provided in this Agreement, there is no agreement of any kind whereby
any Person or Persons have any option or right to acquire or obtain (by
purchase, gift, merger, consolidation or otherwise) an interest in any of the
property or assets included within or constituting a part of the Assets. The
properties listed on Schedule 4.3, including easements and rights-of-way,
constitute all of the real and personal property necessary for the use and
operation of the Assets by EOTT Energy Liquids consistent in all Material
respects with the past practices of EGP Fuels. Taken as a whole and taking their
age and ordinary wear and tear into account, the Assets are in good operating
condition and repair and the Assets have been operated and maintained in the
ordinary course of business and remain in suitable and adequate condition for
use consistent with their primary use since their acquisition by EGP Fuels, EVC
or the Collateral Trustee. EGP Fuels has not deferred maintenance of any such
item of property in anticipation of the transactions contemplated by this
Agreement. For at least the past five years, all of the Assets have been owned
by EGP Fuels, EVC or the Lessor and Collateral Trustee.

         4.4 Litigation. Except as described on Schedule 4.4, there are no
actions, suits, proceedings or investigations pending or, to the Knowledge of
Enron, threatened against any Enron Entity that involve the Assets or the
ownership or use thereof, including any

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condemnation proceedings and any actions, suits, proceedings or investigations
that (a) question the validity of this Agreement or the Conveyances or the right
of any Enron Entity to enter into this Agreement or the Conveyances or to
consummate the transactions contemplated hereby or thereby, (b) might result,
individually or in the aggregate, in any Material adverse change in the Assets,
(c) might result in any change in ownership of the Assets or any portion
thereof, or (d) might adversely affect the transactions contemplated by this
Agreement or the Conveyances.

         4.5 Compliance with Instruments. Other than as set forth on Schedule
4.5, no Enron Entity is in violation of or default under any Permit or Law
applicable to the Assets, except for such violations or defaults that, either
individually or in the aggregate, would not Materially and adversely affect the
ownership or operation of the Assets by EOTT Energy Liquids, the fair market
value of the Assets or the other transactions contemplated by this Agreement or
the Conveyances. The execution, delivery and performance of and compliance with
this Agreement and the Conveyances will not with or without the passage of time
or giving of notice or both, (i) result in any violation of, or conflict with,
or constitute a default under, (A) the articles of incorporation or other
governing instruments of Enron or any Enron Entity, or (B) any Permit or Law
applicable to Enron, any Enron Entity or the Assets, or (ii) result in the
creation of any Lien upon any of the assets or properties included within or
constituting part of the Assets (other than Permitted Encumbrances), except in
the case of clauses (i)(B) and (ii) for such violations, conflicts, defaults or
Liens that, either individually or in the aggregate, would not Materially and
adversely affect the ownership or operation of the Assets by EOTT Energy
Liquids, the fair market value of the Assets or the transactions contemplated by
this Agreement or the Conveyances.

         4.6 Compliance with Laws. Except as set forth on Schedule 4.6, neither
Enron nor any Enron Entity is in default or violation in any respect under any
Law affecting or relating to the Assets or the ownership or operation thereof
(other than Environmental Laws which are dealt with in Section 4.11 hereof),
except for defaults or violations that, either individually or in the aggregate,
would not Materially and adversely affect the ownership or operation of the
Assets by EOTT Energy Liquids, the fair market value of the Assets or the other
transactions contemplated by this Agreement or the Conveyances.

         4.7 Governmental and Other Consents. Except for such as have been
obtained, no authorization, consent or approval of, or registration,
qualification or filing with, any Governmental Authority or other Person is
required to be obtained by Enron or any of its Affiliates in connection with the
execution, delivery and performance of this Agreement by Enron or the execution,
delivery and performance by any Enron Entity of the Conveyances to which it is a
party.

         4.8 Contracts.

              (a) Schedule 4.8 lists all contracts, agreements (other than
easements and other agreements relating to rights-of-way) leases, guarantees,
indemnities, proposals, requests for proposals or other commitments that are
being assigned to EOTT Energy Liquids pursuant to one or more of the Conveyances
(collectively, the "Contracts"). The Contracts include all Material agreements
necessary for the ownership and operation of the Assets by EOTT Energy Liquids
as contemplated by this Agreement. Except as set forth on Schedule 4.8(a) or
Schedule

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4.8(b), each such Contract is in full force and effect and is a valid, binding
and enforceable obligation of the other parties thereto, and the rights under
each such Contract have been validly assigned to EOTT Energy Liquids pursuant to
one or more Conveyances. Except as set forth on Schedule 4.8(a), EGP Fuels and
EVC have performed all of their respective obligations required to be performed
to date under the Contracts and neither of them is in breach or default of any
obligation under any of the Contracts to which it is a party, which breach or
default is reasonably likely to Materially and adversely affect the ownership or
operation of the Assets by EOTT Energy Liquids, the fair market value of the
Assets or the other transactions contemplated by this Agreement or the
Conveyances, and there does not exist under any provision of any of the
Contracts any event (including the assignment of the Contracts pursuant to one
or more of the Conveyances) that, with the giving of notice or the lapse of time
or both, would constitute such a breach or default. Except as set forth on
Schedule 4.8(a), to the Knowledge of Enron, no other party to any of the
Contracts is in breach or default of any obligation thereunder, which breach or
default is reasonably likely to Materially and adversely affect the ownership or
operation of the Assets by EOTT Energy Liquids, the fair market value of the
Assets or the other transactions contemplated by this Agreement or the
Conveyances. The execution, delivery and performance of and compliance with this
Agreement and the Conveyances will not, with or without the passage of time or
giving of notice or both, result in any violation of, or conflict with, or
constitute a default under, any Contract, except for such violations, conflicts
or defaults that, either individually or in the aggregate, would not Materially
and adversely affect the ownership or operation of the Assets by EOTT Energy
Liquids, the fair market value of the Assets or the transactions contemplated by
this Agreement or the Conveyances.

              (b) Schedule 4.8(b) contains a list of all Contracts, easements
and other agreements relating to rights-of-way for which the consent of the
other party thereto is required in connection with the consummation of the
transactions contemplated by this Agreement and indicates those consents that
have been obtained.

         4.9 Employment and Labor Matters. EGP Fuels has operated and managed
the Assets for at least the past five years, and during such period all
individuals who have been responsible for the operation and management of the
Assets have been employed by EGP Fuels. EGP Fuels is not a party to any
agreement (either directly, or indirectly as a result of such Person's
membership in any employer associations) with respect to any employees with any
labor organization, union, bargaining group or similar labor or employee
organization, and no labor organization or group of representatives or employees
of EGP Fuels has made a demand for recognition or filed a petition seeking a
representation proceeding or given notice to EGP Fuels of any intention to hold
an election of a collective bargaining representative. There is no labor strike,
slowdown or other general work stoppage or labor disturbance pending or
threatened against EGP Fuels.

         4.10 Conduct and Transactions. Except as disclosed on Schedule 4.10, or
as expressly permitted by the terms of this Agreement, since April 30, 2001, EGP
Fuels and EVC have conducted their businesses with respect to the Assets only in
the ordinary course and substantially in the manner in which such businesses
were being conducted on April 30, 2001, and there has not been:

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<PAGE>   15

              (a) Any change in the contracts, property or assets of EGP Fuels
or EVC, except changes in the ordinary course of business that, individually or
in the aggregate, have not been Material to the ownership or operation of the
Assets, have not Materially and adversely affected the fair market value of the
Assets and have not Materially impaired or prohibited the consummation of the
transactions contemplated by this Agreement or the Conveyances;

              (b) Any other event or condition of any character that,
individually or in the aggregate, has been or is reasonably expected to be
Materially adverse to the Assets or their fair market value or that has
Materially impaired or is reasonably expected to Materially impair the ownership
or operation of the Assets by EOTT Energy Liquids, the fair market value of the
Assets or the other transactions contemplated by this Agreement or the
Conveyances; or

              (c) Any agreement or commitment by EGP Fuels or EVC to do any of
the things described in this Section 4.10.

         4.11 Environmental Matters. Except as disclosed on Schedule 4.11, (a)
the Assets are being operated in compliance in all Material respects with all
Laws and Permits applicable to the Assets relating to health, safety or the
environment, including the Clean Air Act, the Comprehensive Environmental,
Response, Compensation, and Liability Act of 1980 ("CERCLA"), the Clean Water
Act, the Occupational Safety and Health Act of 1970 ("OSHA"), the Resource
Conservation and Recovery Act of 1976 ("RCRA"), the Safe Drinking Water Act, the
Toxic Substances Control Act, the Hazardous Materials Transportation Act, the
Endangered Species Act, the Oil Pollution Act of 1990 and all other federal,
state and local health, safety and environmental protection Law, in each case as
in effect on the date hereof (the foregoing collectively, "Environmental Laws");
and (b) EGP Fuels has obtained all Permits required by Environmental Laws to
permit it to store, dispose of and otherwise handle Wastes, which Permits are
listed in Schedule 4.11, and EVC is not required to obtain any such Permits.
Except as listed on Schedule 4.11, there is no Waste in groundwater or soils
located on, or Waste emanating from, any Assets requiring remediation or
creating liability under applicable Environmental Laws or existing common law.
Except as listed on Schedule 4.11, there is no on-site or off-site location to
which Wastes from the Assets have been transported or disposed of, which site is
or may be the subject of any investigation that could lead to any claim against
EOTT Energy Liquids for any clean-up cost, remedial work, property damage,
damage to natural resources or personal injury, including claims under CERCLA or
other Environmental Laws. Neither EGP Fuels nor EVC has received a notice or
request for information from or a claim by a Governmental Agency or a third
party claim with respect to potential liability under CERCLA or any other
Environmental Law relating to the Assets. For the purpose of this Section 4.11,
"Wastes" shall mean any solid or hazardous waste, hazardous substance,
pollutant, contaminant, oil, petroleum product or other substance that is listed
or regulated under any Environmental Law.

         4.12 Patents and Trademarks, etc.. Schedule 4.12 lists all patents,
patent rights, licenses, trade secrets, copyrights, inventions and other
intellectual property rights, including rights to technology relating to the
production of MTBE and operations and maintenance of the Mont Belvieu Facility
or the Grid System, but excluding trademarks, service marks, trademark rights,
trade names or trade name rights and "off the shelf" or standard products
(collectively, "Intellectual Property Rights"), of EGP Fuels, and EGP Fuels has
paid all maintenance fees,

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<PAGE>   16

royalties and other amounts and made all required filings with respect to such
Intellectual Property Rights. The Intellectual Property Rights have been validly
assigned to EOTT Energy Liquids pursuant to one or more Conveyances and
constitute all patents, patent rights, licenses, trade secrets, trademarks,
service marks, trademark rights, trade names or trade name rights, copyrights,
inventions and other intellectual property rights necessary for the operation of
the Assets in the manner in which such Assets have been operated by EGP Fuels
and for the performance of EOTT Energy Liquids' obligations under this
Agreement, in each case, to the Knowledge of Enron, without any known conflict
with or infringement of the rights of others, except as reflected in Schedule
4.12. None of the Enron Entities has received any notice with respect to any
charge, complaint, claim or demand alleging that EGP Fuels or any licensor of
Intellectual Property Rights has infringed or misappropriated any intellectual
property rights of a third party or any action, suit or proceeding with respect
thereto.

         4.13 Taxes. Except as set forth on Schedule 4.4, there are no Liens on
any of the Assets with respect to Taxes, other than Liens for Taxes not yet due
and payable or for Taxes that EGP Fuels or EVC is contesting in good faith
through appropriate proceedings identified on Schedule 4.13.

         4.14 Permits. EGP Fuels and EVC have obtained all Permits that are
Material to or necessary for the ownership (except with respect to the Leased
Assets) and operation of the Assets, the lack of which could have a Material
adverse effect on the Assets, the ownership or operation thereof by EOTT Energy
Liquids, the fair market value of the Assets or the transactions contemplated by
this Agreement or the Conveyances. All such Permits are in full force and
effect; and no proceeding is pending or, to the Knowledge of Enron, threatened
to revoke or limit any such Permits. Schedule 4.14 contains a true, correct and
complete list of all of the Material Permits, except for easements and
rights-of-way. Except as described in Schedule 4.3, all such Permits have been
validly transferred to EOTT Energy Liquids pursuant to one or more Conveyances.
The Parties will cooperate with each other in making appropriate filings with
Governmental Authorities and taking other action to effect the expeditious
transfer of any transferable Permits.

         4.15 Access. Access to and egress from all portions of the Mont Belvieu
Facility and the MTBE Plant are available and provided by public streets or
roads or easements or other rights that constitute part of the Assets.

         4.16 Zoning. The Mont Belvieu Facility and the MTBE Plant, as
constructed, each complies with all applicable zoning or other land use laws and
ordinances, if any, as in effect on the date hereof, and each is in compliance
with all restrictive covenants or deed restrictions filed of record affecting
such property, except for such noncompliance that, either individually or in the
aggregate, would not Materially and adversely affect the ownership or operation
of the Assets by EOTT Energy Liquids, the fair market value of the Assets or the
other transactions contemplated by this Agreement or the Conveyances.

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                                   ARTICLE V
                       ADDITIONAL COVENANTS OF THE PARTIES

         5.1 Purchase Price Allocation. Enron and EOTT agree that for purposes
of determining the allocation of the purchase price received for the Assets
hereunder by Enron, for federal income Tax purposes an Asset Acquisition
Statement, on Internal Revenue Service Form 8594, shall be filed with the
Internal Revenue Service at such time as Enron and EOTT shall mutually agree.
Enron and EOTT agree to use, and be consistent with, the valuations and
allocation methodology described therein in all their applicable Tax returns and
determinations.

         5.2 Books and Records. Within thirty (30) days after Closing, Enron
shall deliver all books and records relating to the Assets to EOTT to the extent
such books and records are not located at the MTBE Plant or the Mont Belvieu
Facility.

         5.3 Use of Names. Prior to October 1, 2001, EOTT will cause EOTT Energy
Liquids to remove all references to Enron or EGP Fuels on pipeline markers or
other signs that relate to the Assets. The Parties acknowledge that nothing in
this Agreement or the Conveyances grants to EOTT or its controlled Affiliates
the right to use the Enron name or mark.

         5.4 Tax Matters. Ad valorem taxes for the year 2001 relating to the
Assets have been prorated, based on the amount of taxes for the year 2000, with
each transferor of Assets responsible for taxes for the portion of the year
through June 30, 2001 and EOTT Energy Liquids responsible for the balance. The
payments referred to in Sections 2.1 and 2.2 reflect this allocation. In the
event payment is due as a result of the settlement or other resolution of the
proceedings referred to in Section 4.13, EGP Fuels will make such payment if and
to the extent it relates to periods through June 30, 2001, and EOTT Energy
Liquids will make such payment if and to the extent it relates to periods
thereafter. As soon as the amount of taxes levied against the Assets for the
calendar year 2001 is known, Enron and EOTT shall cause EGP Fuels, EVC and EOTT
Energy Liquids to readjust in cash the amount of Taxes to be borne by each, with
the result that EOTT Energy Liquids shall be reimbursed for those taxes
attributable to the period through June 30, 2001. In the event there is any
refund of ad valorem taxes relating to the Assets, EGP Fuels or EVC, as the case
may be, shall be entitled to such refund if and to the extent it relates to
periods through June 30, 2001, and EOTT Energy Liquids shall be entitled to such
refund if and to the extent it relates to periods thereafter. Each Party will,
and will cause each of its Affiliates to, provide the other Party and its
Affiliates any information in its possession that may be relevant to the
prosecution or defense of any investigation or proceeding relating to Taxes. In
the event there is any sales tax assessment relating to the Conveyances of the
Assets, or there is a sales tax audit with respect to such Conveyances, EOTT
Energy Liquids shall be responsible for defense thereof and for any costs,
expenses or payments in respect thereof.

         5.5 Curative Action Regarding Title. In consideration for the indemnity
agreement of Enron herein, EOTT agrees that the Enron Entities may make all
decisions relating to title curative matters, including decisions regarding
whether to seek any consent to transfers of any Asset or any waiver of any
requirement for such consent. The costs and expenses of any title curative
actions will be for the account of Enron Entities and not for the account of
EOTT or any of its controlled Affiliates.

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         5.6 Right of First Refusal. If at any time EOTT Energy Liquids should
desire to transfer its ownership of any Assets to a third party (other than
current assets, worn out or obsolete property or property not significant to the
overall operation of the Assets), whether by asset sale, transfer of stock, or
otherwise, before EOTT Energy Liquids may enter into any such agreement with any
third party, EOTT shall cause EOTT Energy Liquids to obtain a reasonably
detailed offer from the proposed third party purchaser setting forth the terms
of the proposed transaction and shall provide a written summary thereof to
Enron. Enron shall have 15 business days after receipt of the summary to elect
either to offer to effectuate, or to cause an Affiliate to offer to effectuate,
the acquisition of the Asset on terms substantially equal to or better than the
terms set forth in the summary. In the event Enron so elects, EOTT shall cause
EOTT Energy Liquids to enter into an agreement with Enron on substantially the
terms set forth in the summary. In the event Enron does not so elect, EOTT
Energy Liquids shall have 45 business days in which to enter into an agreement
with the third party purchaser on terms substantially similar to those of
described in the summary. If it does not enter into such an agreement within
such period, the right of first refusal provisions hereof shall again apply to
any such transfer of ownership.

                                   ARTICLE VI
                            LIMITATION ON LIABILITIES

         6.1 Limitation on Liabilities. Neither Party to this Agreement shall
have any liability to the other Party for any breach of any representation or
warranty or failure to perform any covenant, except for liability specified in
Article VII, it being understood that each Party's remedies against the other
party shall be confined to claims for indemnification under Article VII.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN ANY OTHER PROVISION OF THIS
AGREEMENT, EACH OF THE PARTIES AGREES THAT THE RECOVERY BY ANY PARTY HERETO OF
ANY AMOUNTS PURSUANT TO THE INDEMNITY PROVISIONS OF ARTICLE VII SHALL BE LIMITED
TO THE ACTUAL AND DIRECT DAMAGES SUFFERED OR INCURRED BY THE INDEMNIFIED PERSON
AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ITS REPRESENTATIONS,
WARRANTIES, COVENANTS OR OBLIGATIONS HEREUNDER, TOGETHER WITH REASONABLE
ATTORNEY'S FEES AND EXPENSES AND INTEREST AT THE PRIME RATE ANNOUNCED FROM TIME
TO TIME BY THE CHASE MANHATTAN BANK OR ANY SUCCESSOR TO SUCH BANK, AND IN NO
EVENT SHALL THE INDEMNIFYING PARTY BE LIABLE TO THE INDEMNIFIED PERSON FOR ANY
OTHER DAMAGES, INCLUDING INDIRECT, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES,
EXCEPT TO THE EXTENT THEY CONSTITUTE PART OF A THIRD PARTY CLAIM SUFFERED OR
INCURRED BY THE INDEMNIFIED PERSON AS A RESULT OF THE BREACH OR OTHER ACTION OR
MATTER BY THE INDEMNIFYING PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES,
COVENANTS OR OBLIGATIONS HEREUNDER.

                                  ARTICLE VII
                                 INDEMNIFICATION

         7.1 INDEMNIFICATION BY EOTT. SUBJECT TO THE PROVISIONS OF ARTICLES VI
AND VII, EOTT SHALL PROTECT, DEFEND, INDEMNIFY AND HOLD HARMLESS ENRON AND ITS
AFFILIATES (INCLUDING EGP FUELS) AND THEIR SUCCESSORS AND ASSIGNS AND THEIR
RESPECTIVE OFFICERS, DIRECTORS, MANAGERS, PARTNERS, EMPLOYEES, AGENTS AND
REPRESENTATIVES, FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, CAUSES OF
ACTION, EXPENSES AND LIABILITIES AND TAXES, INCLUDING REASONABLE ATTORNEYS'

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<PAGE>   19

FEES AND EXPENSES ("DAMAGES"), SUSTAINED BY SUCH PERSONS AS A RESULT OF: (A) ANY
BREACH OF ANY REPRESENTATION OR WARRANTY OF EOTT CONTAINED HEREIN; (B) ANY
BREACH OF ANY COVENANT OR AGREEMENT OF EOTT CONTAINED IN THIS AGREEMENT OR OF
EOTT OR EOTT ENERGY LIQUIDS CONTAINED IN ANY OF THE CERTIFICATES, INSTRUMENTS OR
DOCUMENTS DELIVERED PURSUANT HERETO, INCLUDING THE CONVEYANCES, AND (C) ANY
LIABILITY RELATING TO THE OWNERSHIP OR OPERATION OF THE ASSETS FROM AND AFTER
11:59 P.M. ON JUNE 30, 2001, EXCEPT ANY LIABILITY WITH RESPECT TO WHICH ENRON
HAS AN INDEMNITY OBLIGATION PURSUANT TO SECTION 7.2. ANY INDEMNIFICATION
PAYMENTS HEREUNDER SHALL BE REDUCED BY (I) ANY INSURANCE PROCEEDS RECEIVABLE BY
THE INDEMNIFIED PERSON AS A RESULT OF THE EVENT THAT CAUSES SUCH INDEMNITY
PAYMENT AND (II) ANY LOSS REALIZED AS A RESULT OF THE INDEMNIFIED PERSON'S
ACTIONS OR FAILURE TO ACT (PROVIDED THAT FOR SUCH PURPOSES THE FACT THAT ENRON
IS AN AFFILIATE OF EOTT SHALL NOT BE CONSTRUED TO MEAN THAT ALL ACTIONS OF EOTT
AND ITS CONTROLLED AFFILIATES ARE A RESULT OF ENRON'S ACTIONS OR FAILURE TO
ACT).

         7.2 INDEMNIFICATION BY ENRON. (a) SUBJECT TO THE PROVISIONS OF ARTICLE
VI AND VII, ENRON SHALL PROTECT, DEFEND, INDEMNIFY AND HOLD HARMLESS EOTT AND
ITS AFFILIATES (INCLUDING EOTT ENERGY LIQUIDS) AND THEIR SUCCESSORS AND ASSIGNS
AND THEIR RESPECTIVE OFFICERS, DIRECTORS, MANAGERS, PARTNERS, EMPLOYEES, AGENTS
AND REPRESENTATIVES, FROM AND AGAINST ANY AND ALL DAMAGES SUSTAINED BY SUCH
PERSONS AS A RESULT OF:

         (i) ANY BREACH OF ANY REPRESENTATION OR WARRANTY OF ENRON CONTAINED
HEREIN (OTHER THAN THE FIRST THREE SENTENCES OF SECTION 4.3 AND SECTIONS 4.13,
4.15 AND 4.16); or any liabilities arising under Environmental Laws associated
with an Enron Entity's ownership or operation of the Assets prior to 11:59 p.m.
on June 30, 2001;

         (ii) ANY BREACH OF ANY COVENANT OR AGREEMENT OF ENRON CONTAINED IN THIS
AGREEMENT OR OF ANY ENRON ENTITY CONTAINED IN ANY OF THE CONVEYANCES;

         (iii) ANY BREACH OF ANY REPRESENTATION OR WARRANTY OF ENRON IN THE
FIRST THREE SENTENCES OF SECTION 4.3 (EXCEPT THAT FOR SUCH PURPOSES THE
EXCEPTIONS INCLUDED IN SCHEDULE 4.3 SHALL NOT APPLY) OR IN SECTIONS 4.13, 4.15
OR 4.16; AND

         (iv) ANY AND ALL INDEBTEDNESS AND TRADE ACCOUNTS PAYABLE OF EGP FUELS
OR EVC (OTHER THAN THOSE ASSUMED BY EOTT ENERGY LIQUIDS PURSUANT TO THE
CONVEYANCES), INCLUDING THOSE RELATING TO THE OPERATION OF THE ASSETS THROUGH
JUNE 30, 2001.

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<PAGE>   20

NOTWITHSTANDING THE FOREGOING AND EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED
HEREIN, IN NO EVENT SHALL ENRON HAVE ANY INDEMNIFICATION OBLIGATION WITH RESPECT
TO THE MATTERS SET FORTH IN (i) AND (ii), OR OTHERWISE BE IN ANY WAY LIABLE
EXCEPT AS SPECIFICALLY PROVIDED ELSEWHERE IN THIS AGREEMENT, (Y) FOR ANY LOSS OR
SERIES OF RELATED LOSSES NOT IN EXCESS OF TWENTY FIVE THOUSAND DOLLARS
($25,000); OR (Z) FOR ANY LOSSES UNLESS (AND ONLY TO THE EXTENT THAT) THE
AGGREGATE AMOUNT OF LOSSES SUSTAINED BY THE INDEMNIFIED PERSONS EXCEEDS TWO
HUNDRED FIFTY THOUSAND DOLLARS ($250,000). IN NO EVENT, HOWEVER, SHALL ENRON
HAVE ANY INDEMNIFICATION OBLIGATION UNDER THE FOREGOING PROVISIONS OF THIS
SECTION 7.2(A), OR OTHERWISE BE IN ANY WAY LIABLE EXCEPT AS SPECIFICALLY
PROVIDED ELSEWHERE IN THIS AGREEMENT, FOR ANY DAMAGES IN EXCESS OF TWENTY FIVE
MILLION DOLLARS ($25,000,000) IN THE AGGREGATE, EXCEPT THAT IF, AS A RESULT OF A
BREACH OF A REPRESENTATION, WARRANTY, COVENANT OR AGREEMENT OF ENRON CONTAINED
IN THIS AGREEMENT OR OF ENRON OR ANY ENRON ENTITY CONTAINED IN ANY OF THE
CONVEYANCES, EOTT ENERGY LIQUIDS IS REQUIRED TO CEASE OPERATIONS OF THE MTBE
PLANT FOR A PERIOD GREATER THAN 180 CONSECUTIVE DAYS, THEN THE FOREGOING LIMIT
SHALL BE INCREASED TO THE TOTAL AMOUNT OF THE CONSIDERATION PAID PURSUANT TO
SECTIONS 2.1 AND 2.2 HEREOF, BUT SUCH INCREASE SHALL APPLY ONLY FOR PURPOSES OF
DETERMINING WHETHER AND TO WHAT EXTENT ENRON HAS AN OBLIGATION TO INDEMNIFY WITH
RESPECT TO SUCH BREACH. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, ENRON
SHALL HAVE NO LIABILITY UNDER THIS AGREEMENT TO PAY FOR, OR TO REIMBURSE EOTT OR
ANY OTHER INDEMNIFIED PERSON FOR, ANY DAMAGES RELATING TO ANY DEFECT IN TITLE TO
THE ASSETS THAT EOTT OR ANY OF ITS CONTROLLED AFFILIATES ATTEMPTS TO CURE
WITHOUT THE PRIOR WRITTEN CONSENT OF ENRON.

         (b) SUBJECT TO THE PROVISIONS OF ARTICLE VI AND VII, ENRON SHALL
INDEMNIFY AND HOLD HARMLESS EOTT AND ITS AFFILIATES (INCLUDING EOTT ENERGY
LIQUIDS) AND THEIR SUCCESSORS AND ASSIGNS AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, MANAGERS, PARTNERS, EMPLOYEES, AGENTS AND REPRESENTATIVES, WITHOUT
LIMITATION AS TO AMOUNT, FROM AND AGAINST ANY AND ALL COSTS AND EXPENSE OF
DEFENDING THE PENDING LITIGATION AND ADMINISTRATIVE CLAIM BY THE CITY OF
MORGAN'S POINT, TEXAS RELATING TO AD VALOREM TAXES ON THE MTBE PLANT (THE
"MORGAN'S POINT CLAIMS"). IN ADDITION, IN THE EVENT THE MORGAN'S POINT CLAIMS
RESULT IN A DETERMINATION OR SETTLEMENT THAT ESTABLISHES THAT THE VALUE OF THE
MTBE PLANT FOR AD VALOREM TAX PURPOSES WAS IN EXCESS OF $27 MILLION ON JANUARY
1, 2001 (THE EXCESS OF SUCH VALUE OVER $27 MILLION BEING REFERRED TO HEREIN AS
THE "2001 EXCESS VALUE"), ENRON WILL INDEMNIFY EOTT ENERGY LIQUIDS AND ITS
SUCCESSORS AND ASSIGNS FROM AND AGAINST (A) ANY AD VALOREM TAXES FOR 2001 TO THE
EXTENT THAT THEY ARE ATTRIBUTABLE TO THE 2001 EXCESS VALUE, (B) ANY AD VALOREM
TAXES FOR THE YEARS 2002, 2003 AND 2004 AND ONE-HALF OF

                                       16
<PAGE>   21

ANY AD VALOREM TAXES FOR 2005, IN EACH CASE TO THE EXTENT THEY ARE ATTRIBUTABLE
TO THE LESSER OF (i) THE 2001 EXCESS VALUE AND (ii) THE EXCESS OF THE VALUE OF
THE MTBE PLANT FOR AD VALOREM TAX PURPOSES ON JANUARY 1 OF SUCH YEAR OVER $27
MILLION. IN NO EVENT, HOWEVER, SHALL ENRON HAVE ANY OBLIGATION TO INDEMNIFY WITH
RESPECT TO ANY PORTION OF SUCH AMOUNTS THAT RELATES TO ANY INCREASE IN TAX RATES
OVER THE TAX RATES FOR THE YEAR 2000.

         (c) SUBJECT TO THE PROVISIONS OF ARTICLE VI AND VII, ENRON SHALL
REIMBURSE EOTT ENERGY LIQUIDS FOR ANY AND ALL CAPITAL EXPENDITURES INCURRED BY
IT TO MODIFY THE MTBE PLANT IF AND WHEN REQUIRED IN ORDER TO COMPLY WITH THE
NITROGEN OXIDE ("NOx") EMISSIONS PROVISIONS OF THE FEDERAL AND TEXAS CLEAN AIR
ACTS OR ANY OTHER APPLICABLE ENVIRONMENTAL LAWS (AND FOR SUCH PURPOSES SUCH TERM
SHALL BE DEEMED TO INCLUDE SUCH LAWS AS IN EFFECT IN THE FUTURE), BUT ONLY IF
(i) SUCH MODIFICATIONS ARE MADE BY A CONTRACTOR THAT ENRON AND EOTT ENERGY
LIQUIDS HAVE MUTUALLY AGREED UPON, (ii) PRIOR TO DECEMBER 31, 2005, EOTT ENERGY
LIQUIDS HAS ENTERED INTO COMMITMENTS TO MAKE SUCH CAPITAL EXPENDITURES, AND
(iii) EOTT ENERGY LIQUIDS HAS NOT MADE AND IS NOT IN THE PROCESS OF MAKING
MATERIAL MODIFICATIONS TO THE MTBE PLANT (INCLUDING, BUT NOT LIMITED TO,
CONVERSION OF THE PLANT FOR THE PRODUCTION OF OTHER PRODUCTS). NOTWITHSTANDING
THE FOREGOING, ENRON SHALL NOT BE REQUIRED TO REIMBURSE EOTT ENERGY LIQUIDS
HEREUNDER FOR CAPITAL EXPENDITURES (A) IN EXCESS OF $15 MILLION OR (B) IN
AMOUNTS GREATER THAN WOULD HAVE BEEN REQUIRED TO ACHIEVE COMPLIANCE WITH THE NOx
EMISSIONS PROVISIONS IN EFFECT ON THE DATE HEREOF BASED UPON THE PHYSICAL
CONFIGURATION OF THE PLANT ON THE DATE HEREOF. ENRON SHALL HAVE THE OPTION TO
PROVIDE, AT NO COST TO EOTT OR EOTT ENERGY LIQUIDS, SUFFICIENT NOx ALLOWANCES
SUCH THAT THE MTBE PLANT WILL BE IN MATERIAL COMPLIANCE WITH THE NOx EMISSIONS
PROVISIONS OF THE FEDERAL AND TEXAS CLEAN AIR ACTS OR ANY OTHER APPLICABLE
ENVIRONMENTAL LAWS (AND FOR SUCH PURPOSES SUCH TERM SHALL BE DEEMED TO REFER TO
SUCH LAWS AS IN EFFECT IN THE FUTURE). IN THE EVENT ENRON PROVIDES SUCH
ALLOWANCES, EOTT ENERGY LIQUIDS WILL BE OBLIGATED TO RETURN TO ENRON ANY SUCH
ALLOWANCES OR PORTIONS THEREOF THAT EOTT ENERGY LIQUIDS DOES NOT USE.

         (d) ANY INDEMNIFICATION PAYMENTS HEREUNDER SHALL BE REDUCED BY (i) ANY
INSURANCE PROCEEDS RECEIVED BY THE INDEMNIFIED PERSON AS A RESULT OF THE EVENT
THAT CAUSES SUCH INDEMNITY PAYMENT AND (ii) ANY LOSS REALIZED AS A RESULT OF THE
INDEMNIFIED PERSON'S ACTIONS OR FAILURE TO ACT (PROVIDED THAT EOTT AND ITS
CONTROLLED AFFILIATES SHALL HAVE NO RESPONSIBILITY WITH RESPECT TO THE OPERATION
OF THE ASSETS UNTIL 11:59 P.M. ON JUNE 30, 2001, NO RESPONSIBILITY WITH RESPECT
TO TITLE CURATIVE MATTERS AND NO RESPONSIBILITY TO DEFEND AGAINST THE MORGAN'S
POINT CLAIMS).

                                       17
<PAGE>   22

         7.3 Indemnifying and Indemnified Person. For purposes of this Article
VII, the term "Indemnifying Party" as to a particular claim shall mean the Party
against whom an obligation to indemnify is imposed pursuant to this Article VII,
and the term "Indemnified Person" as to a particular claim shall mean the Party
or other Persons entitled to indemnification with respect to such claim by the
Indemnifying Party pursuant to this Article VII.

         7.4 Notification of Claims by Third Parties; Right to Contest and
Defend. Each Party will, promptly after the receipt of notice of any claim in
respect of which indemnity may be sought from any Person entitled to
indemnification hereunder, notify the other Party in writing of the receipt of
such claim. The omission of the Indemnified Person to notify the Indemnifying
Party of any such claim shall not relieve the Indemnifying Party from any
liability in respect of such claim which it may have to the Indemnified Person
on account of the indemnity agreement herein (except, however, that the
Indemnifying Party shall be relieved of such liability to the extent, but only
to the extent, that the failure to notify shall have caused material prejudice
to the defense of such claim), nor shall it relieve the Indemnifying Party from
any other liability which it may have to the Indemnified Person. The
Indemnifying Party shall be entitled at its cost and expense to contest and
defend by all appropriate legal proceedings any claim with respect to which it
is called upon to indemnify the Indemnified Person under the provisions of this
Agreement; provided, however, that notice of the intention to assume and contest
shall be delivered by the Indemnifying Party to the Indemnified Person within
thirty (30) days from the date of delivery to the Indemnifying Party of notice
by the Indemnified Person of the assertion of the claim. Any such contest may be
conducted in the name and on behalf of the Indemnifying Party or the Indemnified
Person as may be appropriate. Such contest shall be conducted by attorneys
employed or engaged by the Indemnifying Party at its sole cost and expense, but
the Indemnified Person shall have the right to participate in such proceedings
and to be represented by attorneys of its own choosing at its cost and expense.
If the Indemnified Person joins in any such contest, the Indemnifying Party
shall coordinate all matters with the Indemnified Person, but the Indemnifying
Party shall have full authority to determine all action to be taken with respect
thereto unless such action involves the risk of liability in excess of the
limitation on indemnity obligations set forth herein, in which case the
Indemnified Person and the Indemnifying Party shall act by agreement. If after
notice as provided for herein, the Indemnifying Party does not elect to contest
or defend any claim as provided in this Section 7.4, the Indemnifying Party
shall be bound by the result obtained with respect thereto by the Indemnified
Person, and the Indemnified Person may (but shall have no obligation to) contest
any such claim. At any time after the commencement of defense of any claim, the
Indemnifying Party may request the Indemnified Person to agree in writing to the
abandonment of such contest or to the payment or compromise by the Indemnifying
Party of the asserted claim, whereupon such action shall be taken unless the
Indemnified Person determines in its sole discretion that failure to continue
the contest or taking of such action could adversely affect the Indemnified
Person or its business or any of its Affiliates, and so notifies the
Indemnifying Party in writing within fifteen (15) days of such request from the
Indemnifying Party.

         7.5 Cooperation. If requested by the Indemnifying Party, the
Indemnified Person agrees to cooperate with the Indemnifying Party and its
counsel in contesting any claim which the Indemnifying Party elects to contest
or, if appropriate, in making any counterclaim against the Person asserting the
claim or any cross-complaint against any Person (other than any

                                       18
<PAGE>   23

Affiliates of the Indemnified Person), but the Indemnifying Party will promptly
reimburse the Indemnified Person for any expenses incurred by it in so
cooperating.

         7.6 Right to Participate. Subject to Section 7.4, the Indemnified
Person agrees to afford the Indemnifying Party and its counsel the opportunity
to be present at, and to participate in, conferences with all Persons, including
Governmental Authorities, asserting any claim against the Indemnified Person for
which indemnity may be sought hereunder, or conferences with representatives of
or counsel for such Persons. Subject to the following sentence, the Indemnifying
Person shall have the sole right to consent to the entry of any judgment or
enter into any settlement with respect to the claim in question without the
prior written consent of the Indemnified Person as long as (and only as long as)
the judgment or settlement does not impose any liability for Damages, injunction
or other legal or equitable relief upon the Indemnified Person. Further, if
Enron is the Indemnifying Person, it shall not consent to any judgment or enter
into any settlement with respect to any claim or other matter without the prior
written consent of the Indemnified Person if the judgment or settlement would,
itself, or when added to all other Damages for which Enron is known to be
responsible as the Indemnifying Party under this Article VII, cause the
aggregate amount of Damages to exceed the maximum amount for which Enron is
liable under this Article VII.

         7.7 Payments. The Indemnifying Party shall pay to the Indemnified
Person, upon demand, the amount of any Damages to which the Indemnified Person
may become entitled by reason of the provisions of this Article VII, such
payment to be made in cash or other immediately available funds at the address
of the Indemnified Person specified in Section 9.6 (or as otherwise specified by
an Indemnified Person that is not a Party to this Agreement). If the Indemnified
Person is required to initiate a court proceeding to enforce its rights to
indemnification hereunder and is successful in such proceeding, it is agreed
that such Party shall be entitled, in addition to the amount to which it is
entitled under this Article VII, to reimbursement for the reasonable legal fees,
proceeding costs and fees of experts incurred by it in prosecuting such action,
plus interest on the indemnified amount at the maximum rate permitted by Law
from the date the Damages for which it is to be indemnified were incurred.

         7.8 Limitation on Claims(i) . Notwithstanding anything to the contrary
in this Article VII, no Indemnifying Party shall be required to make any
indemnification payment to any Indemnified Person with respect to any claim in
respect of which indemnity may be sought unless notice of such claim has been
received by the Indemnifying Party in writing prior to the third anniversary of
the date hereof; or, in the case of a breach of a representation or warranty in
Section 4.11, or in the case of an indemnity relating to any liabilities arising
under Environmental Laws associated with an Enron Entity's ownership or
operation of the Assets prior to 11:59 p.m. on June 30, 2001, prior to the fifth
anniversary of the date hereof; provided that there shall be no such limitation
(other than the statute of limitations) with respect to any claim in respect of
which indemnity may be sought pursuant to the first three sentences of Section
4.3, pursuant to Section 4.13, 4.15 or 4.16, or pursuant to Section 7.2(b) or
(c).

                                       19
<PAGE>   24

                                  ARTICLE VIII
                         DISPUTE RESOLUTION; ARBITRATION

         8.1 Dispute Resolution. The Parties shall attempt in good faith to
resolve by negotiations any dispute, claim or controversy arising out of or
relating to this Agreement or the Conveyances or the performance, application,
implementation, validity or breach of this Agreement, the Conveyances or any
provision of hereof or thereof (including, without limitation, claims based on
contract, tort or statute) (the "Dispute"). Any Party may initiate such
negotiations by delivery to the other Parties of a written notice describing any
Dispute not resolved in the ordinary course of business about which negotiation
is requested.

              (a) Within ten (10) business days after delivery of the notice,
the Parties to such Dispute shall schedule to meet at a mutually acceptable time
and place, and thereafter as often as necessary, to exchange relevant
information and attempt to resolve the Dispute.

              (b) If the Parties to the Dispute fail to meet within twenty (20)
business days or the Dispute is not resolved through negotiations within thirty
(30) business days after delivery of the request for negotiations, any Party to
the Dispute may initiate mediation of the Dispute as provided below.

              (c) If a participant intends to be accompanied by an attorney at a
meeting held pursuant to this section, the other participant shall be given at
least three (3) business days' notice of that intention and may also be
accompanied by an attorney.

              (d) All statements made during meetings pursuant to this Section
8.1 are confidential and shall be treated as settlement negotiations.

         8.2 Mediation. If, in the sole discretion of any Party to the Dispute,
the negotiation as provided in Section 8.1 is unsuccessful, such Party may
submit the Dispute to mediation. The mediation will be submitted to the American
Arbitration Association or any successor thereto (the "AAA") and will be held in
Houston, Texas.

         8.3 Arbitration.

              (a) Any Dispute that has not been resolved through negotiation as
provided in Section 8.1 or mediation as provided in Section 8.2 shall be
finally, conclusively and exclusively settled by confidential, binding
arbitration in accordance with the Commercial Arbitration Rules of the AAA then
in effect (the "Arbitration Rules") and this Section 8.3.

              (b) THE PARTIES TO THIS AGREEMENT HEREBY EXPRESSLY WAIVE THEIR
RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO TRIAL BY JURY, WITH
RESPECT TO ANY MATTER SUBJECT TO ARBITRATION PURSUANT TO THIS SECTION 8.3. ANY
PARTY TO THIS AGREEMENT MAY BRING AN ACTION, INCLUDING, WITHOUT LIMITATION, A
SUMMARY OR EXPEDITED PROCEEDING IN ANY COURT HAVING JURISDICTION, TO COMPEL
ARBITRATION OF ANY DISPUTE, CONTROVERSY OR CLAIM TO WHICH THIS SECTION 8.3
APPLIES. EXCEPT WITH RESPECT TO THE FOLLOWING PROVISIONS (THE "SPECIAL
PROVISIONS") WHICH SHALL APPLY WITH RESPECT TO ANY

                                       20
<PAGE>   25

ARBITRATION PURSUANT TO THIS SECTION 8.3, THE INITIATION AND CONDUCT OF
ARBITRATION SHALL BE AS SET FORTH IN THE ARBITRATION RULES, WHICH ARBITRATION
RULES ARE INCORPORATED IN THIS AGREEMENT BY REFERENCE WITH THE SAME EFFECT AS IF
THEY WERE SET FORTH IN THIS AGREEMENT.

              (c) In the event of any inconsistency between the Arbitration
Rules and the Special Provisions, the Special Provisions shall control. Any
references in the Arbitration Rules to a sole arbitrator may be deemed to refer
to the tribunal of arbitrators provided for under Section 8.3(d).

              (d) Unless otherwise agreed in writing by the Parties: (i) all
hearings and conferences relating to the arbitration will be held in, and the
arbitrator's award will be rendered in Houston, Texas; and (ii) a panel of three
(3) independent arbitrators shall be chosen to settle the Dispute. Each Party
shall select a qualified independent impartial arbitrator, and the two (2)
arbitrators so selected shall, within ten business (10) days select a third
qualified independent impartial arbitrator.

              (e) All arbitration hearings shall be commenced within ninety (90)
days after arbitration is initiated pursuant to the Arbitration Rules, unless,
upon a showing of good cause by a Party to the arbitration, the panel permits
the extension of the commencement of such hearing; provided, however, that any
such extension shall not be longer than sixty (60) days.

              (f) All claims presented for arbitration shall be particularly
identified, and the Parties to the arbitration shall each prepare a statement of
their position with recommended courses of action. These statements of position
and recommended courses of action shall be submitted to the arbitrators chosen
as provided hereinabove for binding decision. The arbitrators shall not be
empowered to make decisions beyond the scope of the position papers.

              (g) The arbitration proceeding will be governed by the substantive
Laws of the State of Texas and will be conducted in accordance with such
procedures as shall be fixed for such purpose by the arbitrators, except that
(i) discovery in connection with any arbitration proceeding shall be conducted
in accordance with the Federal Rules of Civil Procedure and applicable case Law,
(ii) the arbitrators shall have the power to compel discovery, and (iii) unless
the Parties otherwise agree and except as may be provided in this Article VIII,
the arbitration shall be governed by the Federal Arbitration Act, 9 U.S.
Sections 1-16, to the exclusion of any provision of state Law or other
applicable Law or procedure inconsistent therewith or which would produce a
different result. The Parties shall preserve their right to assert and to avail
themselves of the attorney-client and attorney-work product privileges, and any
other privileges to which they may be entitled pursuant to applicable Law. No
Party to the arbitration or any arbitrator may compel or require mediation
and/or settlement conferences without the prior written consent of all such
Parties and the arbitrators.

              (h) The arbitrators shall make an arbitration award as soon as
possible after the later of the close of evidence or the submission of final
briefs, and in all cases the award shall be made not later than thirty (30) days
following submission of the matter. The finding and decision of the arbitrators
shall be final and shall be binding upon the Parties. Judgment upon the
arbitration award or decision may be entered in any court having jurisdiction
thereof or

                                       21
<PAGE>   26

application may be made to any such court for a judicial acceptance of the award
and an order of enforcement, as the case may be. Unless otherwise agreed by the
Parties to the arbitration in writing, the arbitration award shall include
findings of fact and conclusions of Law. If at least two (2) of the arbitrators
agree and so order it, the losing Party shall pay the reasonable legal fees and
costs incurred by the other Parties with respect to the arbitration.

              (i) Notwithstanding any provision in this Section 8.3 to the
contrary, this Section 8.3 shall not be construed to require arbitration of a
claim or dispute brought by a Person who is not a Party to this Agreement, other
than Affiliates of Enron or EOTT, or affect the ability of any Party to
interplead or otherwise join another Party in a proceeding brought by a Person
who is not a Party to this Agreement.

              (j) The obligation to arbitrate under this Section 8.3 shall not
be binding upon any Party with respect to requests for preliminary injunctions,
temporary restraining orders or other procedures in a court of competent
jurisdiction to obtain interim relief when deemed necessary by such court to
preserve the status quo or prevent irreparable injury pending resolution by
arbitration of the actual dispute.

                                   ARTICLE IX
                                  MISCELLANEOUS

         9.1 Further Cooperation. After the Closing, each Party, at the request
of the other Party and without additional consideration, shall execute and
deliver or cause to be executed and delivered from time to time such further
instruments and shall take such further action as the requesting Party may
reasonably require in order to carry out more effectively the intent and purpose
of this Agreement.

         9.2 Amendments and Waivers. Any term or provision of this Agreement may
be waived at any time by an instrument in writing signed by the Party who is
entitled to the benefits of such term or provision, and this Agreement may be
amended or supplemented at any time by an instrument in writing signed by all
Parties hereto.

         9.3 Expenses. Except as otherwise provided for in this Agreement, each
Party shall bear and pay its respective expenses separately incurred in
connection with this Agreement, including its own legal and accounting fees and
expenses.

         9.4 Confidentiality.

              (a) EOTT, the General Partner and EOTT's controlled Affiliates may
use and disclose to any Person any information regarding the Assets or the
ownership or operation thereof by EOTT Energy Liquids following the date of this
Agreement; provided, however, that without the prior written consent of Enron,
none of them shall disclose to any other Person any Confidential Information
regarding the ownership or operation of the Assets by EGP Fuels prior to the
execution and delivery of this Agreement, unless otherwise required by law. In
the event that EOTT, the General Partner or any of EOTT's controlled Affiliates
receives any inquiry or request from any Governmental Authority or other Person
in connection with any attempt to gain access to Confidential Information
relating to the ownership or operation of the Assets prior to the execution and
delivery of this Agreement, EOTT will use reasonable efforts to inform Enron

                                       22
<PAGE>   27

of the substance of such inquiry or request as soon as practicable in order to
give Enron the opportunity to seek a protective order or other legal recourse to
prevent such disclosure.

              (b) For purposes of this Agreement, "Confidential Information"
shall mean all information of any kind concerning the Assets, which information
is confidential, proprietary or generally not available to the public.

         9.5 Assignment and Binding Effect. This Agreement shall be binding upon
and inure to the benefit of and be enforceable by each of the Parties hereto and
their respective legal representatives, successors and permitted assigns.
Neither this Agreement nor any obligation hereunder shall be assigned or
assignable by EOTT or Enron without the prior written consent of all the
Parties, which approval shall not be unreasonably withheld, conditioned or
delayed; provided, however, that, after the Closing, any Party may, without the
consent of the other Parties hereto, assign its interest in this Agreement to a
wholly-owned subsidiary, equity owner or Affiliate of such Party, as the case
may be, but no such assignment shall relieve such Party of its obligations
hereunder. Any purported assignment in violation of this Agreement shall be null
and void ab initio.

         9.6 Notices. All notices, consents, requests, instructions, approvals
and other communications provided for herein and all legal process in regard
hereto shall be validly given, made or served if in writing and if delivered
personally (including by courier against written receipt), by facsimile or sent
by certified or registered mail, postage prepaid, addressed as follows:

To Enron:

         Enron Corp.
         1400 Smith Street
         Houston, Texas 77002-7361
         Attention: Corporate Secretary
         Fax: (713) 853-3920

To EOTT:

         EOTT Energy Partners, L.P.
         2000 West Sam Houston Parkway South
         Suite 400
         Houston, Texas 77042
         Fax: (713) 993-5813

or to such other address as any Party hereto may, from time to time, designate
in writing delivered in a like manner. Notice given by personal delivery shall
be deemed to be given on the date delivery was effected. Notice given by mail
shall be deemed to be delivered on the date which is three (3) business days
following the date the same is postmarked.

                                       23
<PAGE>   28

         9.7 Entire Agreement. This Agreement constitutes the entire agreement
between the Parties with respect to the transactions contemplated hereby and
supersedes and is in full substitution for any and all prior agreements and
understandings (written or oral) between the Parties relating to such
transactions.

         9.8 Descriptive Headings. The descriptive headings of the several
sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

         9.9 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAWS.

         9.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

         9.11 Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby.

         9.12 No Third Party Beneficiaries. Nothing herein expressed or implied
is intended or shall be construed to confer upon or to give any Person not a
party hereto (other than Indemnified Persons who are not Parties to this
Agreement, who shall be entitled to the benefits of Article VII) any rights or
remedies under or by reason of this Agreement, except that EOTT Energy Liquids
shall be deemed a third party beneficiary of the agreements of Enron hereunder,
and the Enron Entities shall be deemed to be third party beneficiaries of the
agreements of EOTT hereunder.

                            (signature pages follow)

                                       24
<PAGE>   29

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first above written.

                                ENRON CORP.

                                By: /s/  MITCHELL S. TAYLOR
                                    -------------------------------------
                                    Name: Mitchell S. Taylor
                                    Title: Managing Director

                                EOTT ENERGY PARTNERS, LP

                                BY EOTT ENERGY CORP., its General Partner

                                 By: /s/ DANA R. GIBBS
                                    -------------------------------------
                                    Name: Dana R. Gibbs
                                    Title: President and Chief Operating Officer

                                       25
<PAGE>   30

                                    EXHIBIT A

                       GENERAL DESCRIPTIONS OF FACILITIES

MTBE Plant

         The MTBE Plant is located in Morgan's Point, Texas, which is
approximately thirty miles east of Houston, Texas. The MTBE Plant consists of
(i) a dehydrogenation unit (the "Oleflex Unit"), (ii) a MTBE unit (the "MTBE
Unit", and together with the Oleflex Unit the "Units"), (iii) a butane
isomerization unit and (iv) various product handling facilities.

         The butane isomerization unit has a capacity of 17,000 Barrels per day
("BPD"), which is sufficient to supply 100% of the isobutene needs of the MTBE
Plant. The balance of the production is then available to be marketed externally
to natural gas liquids customers.

         The Oleflex Unit is used for the conversion of isobutane to
isobutylene, and consists of the Oleflex reactor section and the Continuous
Catalyst Regeneration Section. The MTBE unit is used for the conversion of
isobutylene and methanol to MTBE, and consists of the MTBE Section, the
Oxygenates Removal Unit, the Complete Saturation Process Section and the
Deisobutanizer Section. The Units have a design capacity of approximately 15,000
BPD.

         The product handling facilities include (i) an isobutane treatment
facility, which is used for the removal of sulfur from isobutane, (ii) a barge
dock located at Barbours Cut , which is held under a 99-year lease executed in
1956, (iii) railcar facilities consisting of two tracks, each capable of
handling four jumbo railcars, and (iv) five attended truck stations.

Mont Belvieu Facility

         The Mont Belvieu facility is a natural gas liquids storage facility
located at Mont Belvieu, Chamber's County, Texas, which is approximately sixteen
miles from the MTBE Plant. The Mont Belvieu facility consists of ten active
wells with a total capacity of nine million barrels. These facilities are
connected by pipeline directly to the MTBE Plant and a variety of other end
users throughout the Texas/Louisiana Gulf Coast region.

The Grid System

         The Grid System a pipeline system used for the transportation of
natural gas liquids and other products from the Mont Belvieu Facility to the
MTBE Plant, to other pipelines, as well as to refineries owned by Amoco Corp.,
Marathon Oil Co., Phibro Energy U.S.A. and Shell Oil Co.

Barge Dock

         The dock subject to the Dock Lease is located at Barbours Cut, adjacent
to the Houston Container Port at the entrance of the Houston Ship Channel. The
dock can provide a loading

                                       26
<PAGE>   31

berth for barges up to 400 feet in length, 120 feet in beam and 15 feet in
molded draft. The dock has the necessary facilities to load the following
products:

<TABLE>
<CAPTION>
<S>                                        <C>
                Product                           Barrels Per Hour
   ------------------------------------    ---------------------------------
   Natural Gasoline                                     3,300
   Normal Butane                                          850
   Isobutane                                            1,500
   Isobutane (low sulfur)                               1,000
   MTBE                                                 5,000
   Methanol (unloading)                                 2,500
</TABLE>

                                       27

<PAGE>   32

                                    EXHIBIT B

                             KEY OPERATING EMPLOYEES

For the MTBE Plant:
------------------

David Johnson, plant manager
David Pratt, technical manager
Howard Henneman, production manager
Houston Milstead, maintenance manager
Paul Fox, plant controller

For the Mont Belvieu Facility:
-----------------------------

Mark Cartwright, facilities manager
Mike McLaughlin, operations advisor

                                       28

<PAGE>   33
                                   SCHEDULES

Registrant agrees to furnish omitted schedules, as listed on page iii,
supplementally to the Securities and Exchange Commission upon request.

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