Document:

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                                                                   Exhibit 10.42
                                                          Facility Number: 82064

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

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

1.    Agreement

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

2.    Definitions

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

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

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

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

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

      (f) The term "Cardholder" shall mean a natural person or entity doing
      banking business with a participating Financial Institution and to whom
      such Financial
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      Institution has issued or proposes to issue an access card. The term
      "Cardholder" includes a natural person or entity purporting to be such
      Cardholder.

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

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

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

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

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

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

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

3.    PayPoint Network Description

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

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

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

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

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

4.    Rent

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

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

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

      If this is the initial PayPoint agreement between Franchisee and
      Franchisor, on the first day of the thirteenth month following the
      Commencement Date, Franchisee shall have the option, upon giving
      Franchisor at least 30 days prior written notice, to terminate this
      Addendum; to downgrade the number of PayPoint Electronic Cashiers (Island
      CardReaders), if applicable; to downgrade to the Paypoint Cashier
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      only (ARCOmatic terminal), if applicable; or the downgrade to the PayPoint
      Authorization Terminal (low end terminal device). Any downgrading of
      equipment is at Franchisee's sole cost and expense.

5.    Security

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

6.    Transaction Approval or Denial

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

7.    Access to Franchisee Location; Promotion and Evaluation of PayPoint
      Network

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

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

8.    Interruption of Service

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

9.    Cardholder Refund or Reversal/Void Transactions

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

10.   Receipts

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

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

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

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

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

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

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

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

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

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

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

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

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

11.   Resolution of Disputes

      (a) Cardholder Disputes

      Franchisee acknowledges that participating Financial Institutions are
      required by Federal law to resolve errors asserted by Cardholders, and to
      provide documentation requested by Cardholders, within certain time
      limits. Franchisee agrees to cooperate with Franchisor and participating
      Financial Institutions to resolve Cardholder disputes or inquiries about
      PayPoint Network Transactions. To facilitate resolution of Cardholder
      disputes, Franchisee shall retain, for a period of at least one hundred
      eighty (180) days, copies of receipts issued to Cardholders pursuant to
      Paragraph 10 of this Addendum, or reports from which Transaction
      information can be retrieved. In response to an oral request by Franchisor
      or a participating Financial Institution, to be confirmed in writing,
      Franchisee shall, within three (3) Working Days of the oral request, send
      documentation to Franchisor or to
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      such Financial Institution, as instructed by Franchisor, showing requested
      receipt information for any Transaction that occurred within the previous
      one hundred eighty (180) days. If Franchisee fails to provide the
      requested information within three (3) Working Days, Franchisor shall, at
      the request of the participating Financial Institution, debit Franchisee's
      Trade Statement or electronically debit the Retailer's Account, for the
      amount disputed by the Cardholder and credit, through the participating
      Financial Institution, the Cardholder's deposit account for the amount
      disputed. The obligations of this Paragraph 11 shall survive termination
      of this Addendum. Detailed procedures for customer dispute resolutions are
      incorporated herein, made a part hereof and attached hereto as Exhibit B.

      (b) Franchisee Disputes

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

      (c) Disputes Over-Merchandise or Service

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

12.   Transaction Error Resolution

      In certain unusual circumstances, Retailer's Account may be erroneously
      credited with an amount for a Transaction that did not occur at the
      Franchisee location or with a duplicate of an amount of a Transaction or
      fees for which Retailer's Account was previously credited. In such
      circumstances, Franchisee shall, within three (3) Working Days of receipt
      of an oral request, provide Franchisor with the amount of such erroneously
      credited or duplicate amount. If Franchisee fails to provide Franchisor
      with such amount, Franchisee agrees that Franchisor shall have the right
      to debit Franchisee's Trade Statement or electronically debit Retailer's
      Account for the amount of such erroneously credited or duplicate amount so
      that Franchisor may properly credit the Cardholder or other retailer's
      account.
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13.   Settlement: Settlement Reporting

      Franchisor shall process all approved Transactions captured each
      Settlement Day and any preceding non-Settlement Day and make arrangements
      for the funds to which Franchisee is entitled to be deposited into his or
      her Retailer's Account.

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

14.   Term: Termination

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

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

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

15.   Indemnification

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

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

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

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

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

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

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

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

      However, Franchisee shall not be liable for the failure by any Financial
      Institution to discover a Technical Error, originated by Franchisee.
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16.   Confidentiality: Nondisclosure

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

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

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

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

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

17.   Service Mark License

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

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

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

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

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

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

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

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

18.   Force Majeure

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

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

19.   Assignment

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

20.   Prices Goods and Services

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

21.   Independent Contractor

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

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

ARCO Products Company,                                        Franchisee
a division of AtlanticRichfield Company

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

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

<PAGE>

                        ARCO Contract Dealer/Distributor

--------------------------------------------------------------------------------
PayPoint Network Fees

      Transactions per Month                    Fee per Transaction

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

      Minimum Monthly Charge = $60.00

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

Phone Line Fee Options:

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

Billing and Payment Terms:

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

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

Transaction Definition:

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

                                    EXHIBIT B

                   Retailer Resolution of Cardholder Disputes

PayPoint Network

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

      Examples of complaints:

      a)    Cardholder was charged twice for a purchase.

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

Procedure for resolution of cardholder complaints by the PayPoint Network:

      1)    Cardholder disputes a transaction and notifies financial
            institution.

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

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

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

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

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

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

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

                                    EXHIBIT C

                 PayPoint Network Retailer Account Designation*

RETAILER: ______________________________________________________________________

ADDRESS: _______________________________________________________________________

CITY: __________________________________________________________________________

STATE/ZIP CODE: ________________________________________________________________

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

THE ACCOUNT TO WHICH SUCH CREDITS SHOULD BE APPLIED IS

ACCOUNT NO. ____________________________________________________________________

AT _____________________________________________________________________________

BRANCH NO. _____________________________________________________________________

                                       PAYPOINT NETWORK RETAILER

                                       BY:______________________________________

                                       TITLE:___________________________________

                                       DATE:____________________________________

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

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

                                PAYPOINT NETWORK

                    Retailer Transaction Information Request

CLAIM NO.:______________________________________________________________________
DATE CLAIM RECEIVED:____________________________________________________________
TODAY'S DATE:___________________________________________________________________

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

FI CARD NO.:____________________________________________________________________
TRANSACTION AMOUNT: ________________  TRANSACTION DATE: ________________________

TRANSACTION TIME: __________________  REFERENCE NO. ____________________________

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

FINANCIAL INSTITUTION: _________________________________________________________

ADDRESS: _______________________________________________________________________

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

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

NAME: __________________________________________________________________________

ADDRESS: _______________________________________________________________________

DATE INFORMATION SENT TO FINANCIAL INSTITUTION: ________________________________
<PAGE>

                                    EXHIBIT D

                            POS and Remote Equipment
                            Disconnection and Removal
                                  Fee Schedule

Telephone Line Disconnection                                             $200.00

Each Inside Terminal Disconnection and Removal                           $200.00

Each Outside Terminal Disconnection and Removal                          $400.00<PAGE>

                                                                   Exhibit 10.43

             AGREEMENT FOR SALE OF REAL ESTATE TO CONTRACT DEALER

Sale of Facility No.: 06202
Dated (for identification):  September 2 , 1999
                             ------------

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

                                 RECITALS
                                 --------

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

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

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

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

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

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

                                 AGREEMENT
                                 ---------

     THEREFORE, Buyer and Seller agree as follows:

                                      -1-
<PAGE>

     1.  Basic Provisions.

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

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

                       Taxpayer I.D. No.: 23-0371610

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

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

                       Taxpayer I.D. No.: 77-0489023

Real Estate:

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

     Street Address:         4100 California Avenue
     City, State, ZIP Code:  Bakersfield, California 93309
     County:                 Kern

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

Deposit:           $20,500.00 by Buyer's check payable to Escrow Holder

Purchase Price:    $820,000.00

                                      -2-
<PAGE>

Closing Date:      October 27, 1999

Title Company:     Old Republic Title Company
                   101 East Glenoaks Boulevard
                   Glendale, California 91209
                   Attn: Michael Stinger

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

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

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

                   Escrow No.:  10736 PC
                               -----------
                   (To be completed by Escrow Holder)

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

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

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

                                      -3-
<PAGE>

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

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

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

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

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

          6.2  Closing Date.  The Escrow will close on or before the Closing
               ------------
Date as set forth in Section 1, unless the Closing Date is delayed in accordance
with other provisions of this Agreement.

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

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

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

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

                                      -4-
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

                                      -5-
<PAGE>

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

          7.3  Recording.  As part of the close of Escrow, Escrow Holder shall
               ---------
record the following documents in the Official Records of the County, in the
following order: The Deed; the Memorandum, the Right of Refusal Agreement, the
Option Agreement, and the Environmental Declaration. These documents must be
recorded before any documents benefitting any lender or other third party are
recorded.

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

     9.   Title.
          -----

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

          9.2  Title Review and Approval.  Seller shall cause the Title Company
               -------------------------
to issue to Buyer a preliminary title report (or a commitment for title
insurance, if the Real Estate is located in a state where title insurers do not
issue preliminary title reports) (in either case, the "Report") covering the
condition of title to the Real Estate. Unless Buyer gives Seller written notice,
within ten days after receiving the Report, objecting to matters shown in the
Report, Buyer will be considered to have approved the condition of title as
shown in the Report. If Buyer so objects to any matter (each, a "Disapproved
Matter") shown in the Report, Seller will have 30 days after receiving Buyer's
written objection in which to remove the Disapproved Matter from record title or
to obtain the Title Company's agreement to issue an appropriate endorsement to
the Title Policy. If Seller is unable or unwilling to remove the Disapproved
Matter from record title or to obtain the Title Company's agreement, Seller may
terminate this Agreement by giving a termination notice to Buyer and Escrow
Holder within the 30-day period. If Seller so terminates this Agreement, Seller
shall pay all escrow and title cancellation charges; Escrow Holder shall return
the Deposit to Buyer; and neither party will have any further obligation to the
other under this Agreement. The term "Permitted Exception" means each matter
shown in the Report that (i) is not a Disapproved Matter or (ii) is a
Disapproved Matter for which Seller has obtained the Title Company's agreement
to issue an appropriate endorsement to the Title Policy.

                                      -6-
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                      -7-
<PAGE>

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

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

                    Facsimile:  (714) 670-5195

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

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

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

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

          (a) Buyer's Inspection and Testing Rights.  During the Inspection
              -------------------------------------
Period, Buyer shall obtain a subsurface investigation report on the extent and
concentrations of any petroleum products in the soil and, if encountered,
groundwater at or under the Real Estate (the "Phase II Report"). Buyer shall
engage a geologist or professional engineer who is licensed by the State of
California and who is not an affiliate of Buyer or Seller (the "Environmental
Consultant"), to perform the subsurface investigation and prepare and certify
the Phase II Report. Buyer shall initially pay for the cost of the Phase II
Report. Escrow Holder shall prorate the cost of the Phase II Report at the
closing so that Buyer and Seller share equally up to $15,000 of the total cost
of the Phase 11 Report. The parties shall request that the Environmental
Consultant complete the Phase II Report at least 10 days prior to the end of the
Inspection Period. Subject to the provisions of Section 12.5 (b) below, Buyer
shall determine the scope of work for the Phase II Report, in its reasonable
discretion. Buyer
                                      -8-
<PAGE>

shall have the right to modify the scope of work, as a result of on-site
conditions discovered in the course of the investigation.

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

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

          (d) Reports and Disclosure.  Buyer shall deliver to Seller at Seller's
              ----------------------
Environmental Notice Address a copy of the Phase 11 Report, within two days
after Buyer receives the report. Buyer shall not disclose the results of any
test to any regulatory agency or other third party, unless required to do so by
law and unless Buyer delivers to Seller at Seller's Environmental Notice Address
a copy of the disclosure at least ten days before Buyer mails or otherwise
transmits the disclosure to the agency or other third party.

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

                                      -9-
<PAGE>

mechanics' and other statutory liens from all contractors who conducted tests at
Buyer's request.

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

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

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

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

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

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

     16.  Tax-Deferred Exchange.  If Seller elects to complete the sale of the
          ---------------------
Real Estate through a tax-deferred exchange under Internal Revenue Code Section
1031, Buyer shall cooperate with Seller in the exchange transaction. Buyer's
cooperation includes the signing, acknowledgment, and delivery of all documents
that Seller reasonably requests, at no risk or expense to Buyer. Seller shall
indemnify and defend

                                      -10-
<PAGE>

Buyer from all liabilities, damages, claims, costs, and expenses (including
reasonable attorneys' fees) that Buyer might incur in connection with Buyer's
participation in the exchange transaction.

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

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

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

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

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

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

                                      -11-
<PAGE>

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

          19.5  Underground Storage Tanks.  The underground storage tanks and
                -------------------------
associated underground piping and vapor recovery systems at the Real Estate are
(i) fully operational and (ii) in material compliance with the December 23, 1998
underground storage tank system upgrade standards set forth under Section 25291
or Section 25292(d) and (e) of the California Health and Safety Code, and
related regulations adopted pursuant to Section 25299.3 of the California Health
and Safety Code, according to the certificate of upgrade compliance provided
under Section 25284 of the California Health and Safety Code.

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

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

     G1.  Notices.  Notices relating to this Agreement must be in writing and
          -------
sent to  the addresses set forth in Section 1.  But a party may change its
address for notices by  giving notice as required by this Section G1.  A written
notice will be considered given

                                      -12-
<PAGE>

(i) when personally delivered, (ii) two business days after deposit in the U.S.
Mail as first class mail, certified or registered, return receipt requested,
with postage prepaid, (iii) one business day after deposit with a reputable
overnight delivery service for next business day delivery, or (iv) on the
business day of successful transmission by electronic facsimile.

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

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

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

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

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

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

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

     G9.  Interpretation.  The captions appearing in this Agreement are for
          --------------
convenience of reference only, and they do not affect the meanings of the
provisions of this Agreement. In this Agreement, each gender includes the other
genders. Words in the singular include the plural and vice versa, when
appropriate. The word "person" includes natural individuals and all other
entities. The word "cost" includes any cost or expense. The word "term" includes
any covenant, condition, representation, warranty,

                                      -13-
<PAGE>

or other provision that is part of an agreement. Whenever a provision of this
Agreement requires Buyer or Seller to perform an act, that person must do so at
its sole cost (unless otherwise stated in connection with that provision).

                                    BUYER:

                                    LLO-GAS, INC.,
                                    a Delaware corporation

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

                                    SELLER:

                                    ATLANTIC RICHFIELD COMPANY, a Delaware
                                    corporation

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

Agreed to by Escrow Holder
on  Sept. 2 , 1999.
   ---------

CITYWIDE ESCROW SERVICES, INC.

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

                                      -14-
<PAGE>

                     LEGAL DESCRIPTION OF THE REAL ESTATE

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

                                  EXHIBIT "A"
<PAGE>

                                 LEGAL DESCRIPTION

All that portion of Lot 3 of Tract No. 3202, in the City of Bakersfield, County
of Kern,  State of California, and is described as follows:

Beginning at the Southwest corner of said Lot 3; thence along the South line of
said Lot 3 and the North line of California Avenue, and along a curve concave
Southeasterly, having a radius of 2155.00 feet and a central angle of 12 degrees
19'28", a distance of 463.545 feet to the end of said curve; thence North 89
degrees 14'00" East 141.768 feet to the true point of beginning of this
description, said point of beginning also being the beginning of a curve concave
Northwesterly, having a radius of 20 feet and a central angle of 89 degrees
25'19", thence along said curve 31.214 feet to the end of said curve and to a
point on the East line of said Lot 3; thence North 0 degrees 11'19" West, along
said East line, said East line also being the West line of Chester Lane, 130.201
feet to a point; thence South 89 degrees 14' 00" West, 175.00 feet to a point;
thence South 0 degrees 11'19" East, 150.00 feet, more or less, to a point on the
South line of said Lot 3, thence Easterly along said South line to the true
point of beginning.

EXCEPT all oil, gas and other minerals contained within the property hereinabove
described, whether now known to exist or hereafter discovered all oil, gas and
other  mineral rights belonging or appertaining to said property, the exclusive
right to prospect  for, drill for, produce, mine, extract and remove oil, gas
and other minerals upon and  from said property, the exclusive right to drill
upon, to drill through and otherwise to use  said property to produce, mine,
extract and remove oil, gas and other minerals from  adjacent or neighboring
lands and the exclusive right to inject in, store under, and  thereafter
withdraw from said property, oil, gas and other minerals and products  thereof,
whether produced from said property or elsewhere, but unless the Grantee
therein or its successors or assigns, shall give written consent to the drilling
of wells  upon the surface of said lands, all of the foregoing rights shall be
exercised only by the  drilling of wells from locations on adjacent or
neighboring lands into or without entering  upon or using any portion of said
property lying above said depth, as reserved by Kern  County Land Company, in
deed recorded December 29, 1967 in Book 4116, Page 612  of Official Records.

ALSO EXCEPT all water and water rights in and under said land.

                                  Page 1 of 1
<PAGE>

                     LOCATION OF THE COMPANION REAL ESTATE

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

                                  EXHIBIT "B"
<PAGE>

                     LOCATION OF THE COMPANION REAL ESTATE

ARCO Facility No.:                01860

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

ARCO Facility No.:                05502

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

ARCO Facility No.:                05212

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

ARCO Facility No.:                05513

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

ARCO Facility No.:                05972

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

ARCO Facility No.:                06202

Street Address, City, and State:  4100 California Avenue
                                  Bakersfield, California 93309

                                  EXHIBIT "B"
<PAGE>

                 DECLARATION OF ENVIRONMENTAL RESTRICTION AND
                 OTHER ENVIRONMENTAL COVENANTS AND CONDITIONS

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

                                  EXHIBIT "C"
<PAGE>

Order No.: 118305 GM
Escrow No.:

RECORDING REQUESTED BY AMERICAN
TITLE COMPANY AND WHEN RECORDED,
RETURN TO:

Atlantic Richfield Company
4 Centerpointe Drive, LPR6-163
La Palma, California 90623-1066
Attn: Oscar Castellon
   Facility No.:  06202
   Location:      4100 California Avenue
                  Bakersfield, CA 93309                    FOR RECORDER'S USE
--------------------------------------------------------------------------------
Type 2, 4, and 5 Sites in Multiple Site Sale

                 DECLARATION OF ENVIRONMENTAL RESTRICTION AND
                 OTHER ENVIRONMENTAL COVENANTS AND CONDITIONS

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

                                 RECITALS
                                 --------

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

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

                                 AGREEMENT
                                 ---------

          THEREFORE, Owner agrees and declares as follows:

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

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

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>

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

                              Facsimile:  (310) 456-6094

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

                              Facsimile:   (714) 670-5195

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

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

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

     8.  Restrictions Run with the Land.  ARCO's rights under this Declaration,
         ------------------------------
Owner's obligations under this Declaration, any restrictions on the use and
operation of the Real Estate, and any waivers and releases by Owner under this
Declaration (collectively, the "Rights and Restrictions") are for the benefit of
ARCO and its successors and assigns. The Rights and Restrictions run with the
Real Estate and bind Owner's successors and assigns, including future owners of
the Real Estate, for ARCO's benefit. The Rights and Restrictions are intended
(i) to constitute equitable servitudes that burden the Real Estate and (ii) to
be enforceable under Section 1471 of the California Civil Code.

                      (See signatures on the next page.)

                                      -3-
<PAGE>

                                    OWNER:

                                    LLO-GAS, INC.,
                                    a Delaware corporation

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

(ATTACH NOTARY ACKNOWLEDGMENT)

                                      -4-
<PAGE>

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

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

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

[X]  personally known to me - OR - [_]  proved to me on the basis of satisfactory evidence to be the
                                        person(s)
[SEAL]                                         whose names(s) is/are subscribed to the within
                                               instrument and acknowledged to me that he/she/they
                                               executed the same in his/her/their authorized
                                               capacity(ies), and that by his/her/their signature(s)
                                               on the instrument the person(s),  or the entity upon
                                               behalf of which the person(s) acted, executed the
                                               instrument.

                                               WITNESS my hand and official seal.

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

[_]  INDIVIDUAL
[X]  CORPORATE OFFICER

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

                [_]  GENERAL

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

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

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

                     LEGAL DESCRIPTION OF THE REAL ESTATE

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

                                  EXHIBIT "A"
<PAGE>

                               LEGAL DESCRIPTION

All that portion of Lot 3 of Tract No. 3202, in the City of Bakersfield, County
of Kern, State of California, and is described as follows:

Beginning at the Southwest corner of said Lot 3; thence along the South line of
said Lot 3 and the North line of California Avenue, and along a curve concave
Southeasterly, having a radius of 2155.00 feet and a central angle of 12 degrees
19'28", a distance of 463.545 feet to the end of said curve; thence North 89
degrees14'00" East, 141.768 feet to the true point of beginning of this
description, said point of beginning also being the beginning of a curve concave
Northwesterly, having a radius of 20 feet and a central angle of 89 degrees
25'19", thence along said curve 31.214 feet to the end of said curve and to a
point on the East line of said Lot 3; thence North 0 degree 11'19" West, along
said East line, said East line also being the West line of Chester Lane, 130.201
feet to a point; thence South 89 degrees 14' 00" West, 175.00 feet to a point;
thence South 0 degrees 11'19" East, 150.00 feet, more or less, to a point on the
South line of said Lot 3, thence Easterly along said South line to the true
point of beginning.

EXCEPT all oil, gas and other minerals contained within the property hereinabove
described, whether now known to exist or hereafter discovered all oil, gas and
other mineral rights belonging or appertaining to said property, the exclusive
right to prospect for, drill for, produce, mine, extract and remove oil, gas and
other minerals upon and from said property, the exclusive right to drill upon,
to drill through and otherwise to use said property to produce, mine, extract
and remove oil, gas and other minerals from adjacent or neighboring lands and
the exclusive right to inject in, store under, and thereafter withdraw from said
property, oil, gas and other minerals and products thereof, whether produced
from said property or elsewhere, but unless the Grantee therein or its
successors or assigns, shall give written consent to the drilling of wells upon
the surface of said lands, all of the foregoing rights shall be exercised only
by the drilling of wells from locations on adjacent or neighboring lands into or
without entering upon or using any portion of said property lying above said
depth, as reserved by Kern County Land Company, in deed recorded December 29,
1967 in Book 4116, Page 612 of Official Records.

ALSO EXCEPT all water and water rights in and under said land.

                                  Page 1 of 1
<PAGE>

                       RIGHT OF FIRST REFUSAL AGREEMENT

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

                                  EXHIBIT "D"
<PAGE>

Order No.:   118305GM
Escrow No.:  _____________

RECORDING REQUESTED BY
AMERICAN
TITLE COMPANY AND WHEN
RECORDED,
RETURN TO:

Atlantic Richfield Company
4 Centerpointe Drive, LPR 6-163
La Palma, California 90623-1066
Attn:  Oscar D. Castellon
        Facility No.:  06202
        Location:      4100 California Avenue
                       Bakersfield, CA 93309                FOR RECORDER'S USE
--------------------------------------------------------------------------------

                       RIGHT OF FIRST REFUSAL AGREEMENT

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

                                   RECITALS
                                   --------

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

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

                                   AGREEMENT
                                   ---------

          THEREFORE, Owner agrees as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>

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

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

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

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

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

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

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

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

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

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

          4.1  Transfer Notice.  If, during the Right Duration, Owner enters
               ---------------
into a Tendered Agreement, Owner shall promptly send a 'transfer Notice to
Holder. No one

                                      -3-
<PAGE>

other than Owner can satisfy Owner's obligation to send the Transfer Notice.
Holder may acquire the Offered Parcel that is the subject of the Tendered
Agreement, instead of the third party.

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

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

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

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

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

          (c)  Price Allocation When Larder Parcel or Adjacent Parcel is
               ---------------------------------------------------------
               Offered. If (i) the Right is for the purchase of a Larger Parcel
               and (ii) the purchase price in the Tendered Agreement is
               allocated between the Real Estate and the remainder of the Larger
               Parcel, Holder
                                      -4-
<PAGE>

               may buy the Real Estate and not the remainder by paying only the
               consideration allocated to the Real Estate. Or if (i) the Right
               is for the purchase of a Larger Parcel and (ii) the purchase
               price is not so allocated, Holder may buy only the Real Estate by
               paying consideration that is equitable for only the Real Estate,
               considering the total purchase price to be paid by the third
               party for the Real Estate and the remainder. If Owner and Holder
               fail to agree on an equitable amount, that amount will be
               determined in accordance with Section 6. The above principles of
               this Section 5(c) will apply in like manner if the Right is for
               the purchase of the Real Estate and an Adjacent Parcel.

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

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

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

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

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

          6.2  Qualified Appraiser.  "Qualified Appraiser" means a real estate
               -------------------
appraiser who (i) is a member of the Appraisal Institute, (ii) is unaffiliated
with Owner, Holder, and the third party under the Tendered Agreement, and (iii)
has had full-time experience, during each of the immediately preceding five
years, in appraising commercial real property in the area of the Real Estate.
But if Holder will be purchasing
                                      -5-
<PAGE>

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

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

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

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

         (a)  Deed and Title Insurance.  Owner shall provide the Title Company
              ------------------------
              with a deed conveying title to the Offered Parcel, free of
              encumbrances, except those that Holder elects to accept. Owner
              shall provide Holder with an ALTA Standard Coverage Owner's
              Policy of Title Insurance insuring title, subject only to the
              printed exceptions of the policy and those encumbrances that
              Holder elects to accept. The policy must be issued by the Title
              Company (or another insurer acceptable to Holder) and have a
              liability amount equal to the purchase price of the Offered
              Parcel. Closing
                                      -6-
<PAGE>

              will be considered effected when the County Recorder accepts the
              deed for recording.

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

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

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

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

                                      -7-
<PAGE>

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

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

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

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

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

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

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

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

          (c)  Transfer to Parent Corporation.  A transfer of any Offered Parcel
               ------------------------------
               or Related Property to a parent corporation of Owner, as long as
               John D. Castellucci (i) owns 75% of the stock in the parent
               corporation
                                      -8-
<PAGE>

               and (ii) has control of the management of the parent corporation
               and retains control of the management of Owner.

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

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

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

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

          Transferor shall indemnify and defend Holder from all claims,
          liabilities, damages, losses, costs, and expenses (including
          reasonable attorneys' fees) that Holder incurs arising from any
          environmental contamination occurring or hazardous materials existing
          at the real property that Transferor is concurrently conveying to
          Holder (the "Real Property"), to the extent that the contamination or
          hazardous materials (i) are present at concentrations that any
          governmental agency will require to be remediated or otherwise are not
          in compliance with all applicable statutory

                                      -9-
<PAGE>

          and regulatory requirements, (ii) are known or discovered before
          Holder begins its operations at the Real Property, and (iii) are not
          those on which Holder is obligated to perform any corrective action
          under a written agreement between Transferor and Holder. This
          agreement to indemnify and defend will survive the closing of
          Transferor's transfer of the Real Property to Holder.

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

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

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

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

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

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

                                     -10-
<PAGE>

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

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

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

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

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

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

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

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

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

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

                 Lien Enforcement Notice: A notice from Lender to Holder
                 -----------------------
notifying Holder of Lender's intent to enforce its Lien. The Lien Enforcement
Notice must include (i) a copy of the recorded lien document, (ii) a copy of the
promissory note or other document evidencing the Secured Obligation, (iii) a
current preliminary title report
                                     -11-
<PAGE>

contemplating the issuance of an Assignment Endorsement, together with legible
copies of all recorded documents referenced in the report, (iv) a statement of
the amount of the unpaid balance of the Secured Obligation, (v) a description of
the Loan Default, (vi) an itemization of the portion of the unpaid balance of
the Secured Obligation that is in default, (vii) an itemization of the Default
Amounts, and (viii) a statement of any Accelerated Amount.

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

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

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

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

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

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

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

                 12.7  Holder's Purchase of Secured Obligation. If Holder elects
                       ---------------------------------------
to buy the Secured Obligation, then within 20 days after the date of the
Foreclosure Exercise Notice, Holder shall buy from Lender, and Lender shall sell
to Holder, the Secured Obligation and all of Lender's rights in connection with
the Secured Obligation. The purchase price will be equal to the Basic Loan
Balance as of the date of the closing of the purchase and sale transaction. If
Holder wishes, the purchase and sale transaction

                                     -12-
<PAGE>

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

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

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

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

                                     -13-
<PAGE>

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

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

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

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

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

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

                                     -14-
<PAGE>

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

                   Facsimile: (714) 670-5439

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

                   Facsimile: (310) 456-6094

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

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

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

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

     G6.  Entire Agreement; Modification; Waiver.  This Agreement (including any
          --------------------------------------
attached Exhibits) contains the entire agreement between Owner and Holder with
respect to the Right granted under this Agreement. Any modification of this
Agreement

                                     -15-
<PAGE>

must be in writing and signed by Owner and Holder. Any waiver of a provision of
this Agreement by Owner or Holder must be in writing.

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

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

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

                              OWNER:

                              LLO-GAS, INC.,
                              a Delaware corporation

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

(ATTACH NOTARY ACKNOWLEDGMENT)

                                     -16-
<PAGE>

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

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

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

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

                                    WITNESS my hand and official seal.

                                                /s/  M. Bird
                                    --------------------------------------------
                                                   SIGNATURE OF NOTARY

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

[_]  INDIVIDUAL

[X]  CORPORATE OFFICER

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

                 [_] GENERAL

[_]  ATTORNEY-IN-FACT

                                              ------------------------
[_]  TRUSTEE(S)                                     NUMBER OF PAGES
[_]  GUARDIAN/CONSERVATOR
[_]  OTHER                                        September 2, 1999
                                              ---------------------------
                                                   DATE OF DOCUMENTS
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)

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

                     LEGAL DESCRIPTION OF THE REAL ESTATE

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

                                     -17-
<PAGE>

                                  EXHIBIT "A"

                               LEGAL DESCRIPTION

All that portion of Lot 3 of Tract No. 3202, in the City of Bakersfield, County
of Kern, State of California, and is described as follows:

Beginning at the Southwest comer of said Lot 3; thence along the South line of
said Lot 3 and the North line of California Avenue, and along a curve concave
Southeasterly, having a radius of 2155.00 feet and a central angle of 12 degrees
19' 28", a distance of 463.545 feet to the end of said curve; thence North 89
degrees 14' 00" East, 141.768 feet to the true point of beginning of this
description, said point of beginning also being the beginning of a curve concave
Northwesterly, having a radius of 20 feet and a central angle of 89 degrees 25'
19", thence along said curve 31.214 feet to the end of said curve and to a point
on the East line of said Lot 3; thence North 0 degrees 11' 19" West, along said
East line, said East line also being the West line of Chester Lane, 130.201 feet
to a point; thence South 89 degrees 14' 00" West, 175.00 feet to a point; thence
South 0 degrees 11' 19" East, 150.00 feet, more or less, to a point on the South
line of said Lot 3, thence Easterly along said South line to the true point of
beginning.

EXCEPT all oil, gas and other minerals contained within the property hereinabove
described, whether now known to exist or hereafter discovered all oil, gas and
other  mineral rights belonging or appertaining to said property, the exclusive
right to prospect  for, drill for, produce, mine, extract and remove oil, gas
and other minerals upon and  from said property, the exclusive right to drill
upon, to drill through and otherwise to use  said property to produce, mine,
extract and remove oil, gas and other minerals from adjacent or neighboring
lands and the exclusive right to inject in, store under, and thereafter
withdraw from said property, oil, gas and other minerals and products  thereof,
whether produced from said property or elsewhere, but unless the Grantee
therein or its successors or assigns, shall give written consent to the drilling
of wells upon the surface of said lands, all of the foregoing rights shall be
exercised only by the  drilling of wells from locations on adjacent or
neighboring lands into or without entering upon or using any portion of said
property lying above said depth, as reserved by Kern  County Land Company, in
deed recorded December 29, 1967 in Book 4116, Page 612 of Official Records.

ALSO EXCEPT all water and water rights in and under said land.

                                  Page 1 of 1

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