Exhibit 10.3

 

AMENDMENT NUMBER ONE TO

HANDLING AND THROUGHPUT AGREEMENT

 

This Amendment Number One (this “Amendment”) to the Handling and Throughput
Agreement dated as of March 18, 2003 is made and entered into effective as of
the 27th day of April, 2004 (the “Effective Date”) by and between Valero
Logistics Operations, L.P., a Delaware limited partnership (“Valero Logistics”)
and Valero Marketing and Supply Company, a Delaware corporation (“Valero
Marketing”).

 

RECITALS

 

  A. WHEREAS, Valero Logistics and Valero Marketing are parties to that certain
Handling and Throughput Agreement dated March 18, 2003 (the “Agreement”); and

 

  B. WHEREAS, Valero Logistics and Valero Marketing desire to amend the
Agreement to clarify the equation used to determine the annual adjustment to the
Throughput Fee per Barrel; and

 

AGREEMENTS

 

NOW, THEREFORE, for and in consideration of the covenants and agreements of the
parties contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

1. Defined Terms. Capitalized terms used but not defined in this Amendment shall
have the meanings given them in the Agreement.

 

2. Amendment. The Agreement is hereby amended as follows:

 

Section 1(b) entitled “Throughput Fee per Barrel” of the Agreement is hereby
deleted in its entirety and replaced with the following:

 

“(b) Throughput Fee per Barrel. The Throughput Fee per Barrel for 100% of the
Specified Feedstocks Delivered to a Refinery during any Measurement Period
occurring during 2003 shall be the fee specified in the table below for each
barrel (with any volume of less than one-half barrel being rounded down to the
nearest whole number of barrels and any volume of one-half barrel or more being
rounded up to the next highest whole number) of such Specified Feedstocks:

 

For Specified Feedstocks

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   Throughput Fee
Per Barrel
During 2003

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Delivered to:

      

Benicia Refinery

   $ 0.296

Texas City Refinery

   $ 0.121

Corpus Christi Refinery

   $ 0.203

 

For 100% of the Specified Feedstocks Delivered to the Refineries during any
Measurement Period occurring after 2003, the Throughput Fee per Barrel for
Specified Products Delivered to each of the Refineries shall be adjusted as of
each anniversary of the effective date of this Agreement by a factor which is
75% of the year-to-year percentage change in the CPI applicable to each
Refinery.

 

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3. Ratification. Except as hereby amended, the Agreement is hereby ratified and
affirmed and shall continue in full force and effect in accordance with its
terms. All references to the Agreement hereafter shall mean and refer to the
Agreement as hereby amended

 

4. Counterparts. This Amendment may be executed in multiple counterparts, each
of which shall be deemed an original, and all of which together shall constitute
but one and the same instrument.

 

IN WITNESS WHEREOF, this Amendment has been duly executed by authorized
representatives of the parties, to be effective as of the Effective Date.

 

VALERO LOGISTICS OPERATIONS, L.P.

 

By: Valero GP, Inc., it general partner

By:   /s/    CURTIS V. ANASTASIO            

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Name:

  Curtis V. Anastasio

Title:

  President

VALERO MARKETING AND SUPPLY COMPANY

By:   /s/    MICHAEL S. CISKOWSKI            

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Name:

  Michael S. Ciskowski

Title:

  Executive Vice President

 

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