Document:

Exhibit 10.3

 

TERMINALING AND TRANSPORTATION SERVICES AGREEMENT

 

This Terminaling and Transportation Services Agreement
(“Agreement”) entered into this 27th day of May, 2005 (“Effective
Date”) is made by and between TransMontaigne
Partners L.P. on behalf of itself and its Affiliates (“Owner”), and TransMontaigne Product Services Inc. and Coastal Fuels
Marketing, Inc., (“Customer”), sometimes referred to
individually as “Party” and collectively as “Parties”.  In consideration of the mutual promises
contained in this Agreement, the Parties agree to the following terms and
conditions.

 

Section 1.              Definitions.           In
this Agreement, unless the context requires otherwise, the terms defined in the
preamble have the meanings indicated and the following terms will have the
meanings indicated below:

 

“Affiliate” means, in relation to a Party,
any Person that (i) directly or indirectly controls such Party; (ii) is
directly or indirectly controlled by such Party; or (iii) is directly or
indirectly controlled by a Person that directly or indirectly controls such
Party.  For this purpose, “control” of
any entity or Person means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of any Person,
whether through the ownership of a majority of issued shares or voting power or
control in fact of the entity or Person or otherwise.

 

“Applicable
Law” means, with respect to any Governmental Authority, (i) any
law, statute, regulation, code, ordinance, license, decision, order, writ,
injunction, decision, directive, judgment, policy, decree and any judicial or
administrative interpretations thereof, (ii) any agreement, concession or
arrangement with any other Governmental Authority and (iii) any license,
permit or compliance requirement, in each case applicable to either Party and
as amended or modified from time to time.

 

“Arrival Notice” has the
meaning assigned to such term in Section 4.2.

 

“Barrel” means 42 U.S. Gallons.

 

“Business Day” means each calendar day, excluding Saturdays, Sundays, or other
holidays observed by Owner.

 

“Commencement Date” means May 27, 2005
the date of the closing of Owner’s initial public offering of common units.

 

“Contract Quarter” means a three month
period that commences January 1, April 1, July 1, or October 1,
and ends March 31, June 30, September 30, or December 31
respectively.

 

“Contract Year” means a period of 365
consecutive days commencing on January 1, 2006 and each successive period
of 365 consecutive days during the Term of this Agreement with the exception of
any Contract Year in which February has 29 days when the period will be
366 days, except the initial Contract Year which shall begin on the
Commencement Date, and end December 31, 2005.

 

“FERC” means the United States Federal Energy
Regulatory Commission.

 

“Force
Majeure” means (i) strikes, lockouts or other industrial
disputes or disturbances, (ii) acts of the public enemy or of
belligerents, hostilities or other disorders, wars (declared or undeclared),
blockades, thefts, insurrections, riots, civil disturbances or sabotage, (iii) acts
of nature, landslides, severe lightning, earthquakes, fires, tornadoes,
hurricanes, storms, and warnings for any of the foregoing which may necessitate
the precautionary shut-down of pipelines, docks, loading and unloading
facilities or the Terminal or other related facilities, floods, washouts,
freezing of machinery, equipment, or lines of pipe, inclement weather that
necessitates extraordinary measures and expense to construct facilities or maintain
operations, tidal waves, perils of the sea and other adverse weather conditions
or unusual or abnormal conditions of the sea or other water, (iv) arrests
and restraints of or other interference or restrictions imposed by governments
(either federal, state, civil or military and whether legal or de facto or
purporting to act under some constitutions, decree, law or otherwise),
necessity for compliance with any court order, or any law, statue, ordinance,
regulation, or order promulgated by a Governmental Authority having or
asserting jurisdiction, embargoes or export or import restrictions,
expropriation, requisition, confiscation or nationalization, or, (v) epidemics
or quarantine, explosions, breakage or accidents to equipment, machinery,
plants, facilities or lines of pipe, 
electric power shortages, breakdown or injury of vessels or any other
causes, whether of the kind enumerated above or otherwise, which were not
reasonably foreseeable, and which are not within the control of the Party
claiming suspension and which by the exercise of due diligence such Party is
unable to prevent or

 

 

overcome, and which
continue for a period of thirty (30) consecutive days.  Such term will likewise include, in those
instances where either Party is required to obtain servitudes, rights-of-way,
grants, permits, or licenses to enable such Party to fulfill its obligations
under this Agreement, the inability of such Party to acquire, or delays on the
part of such Party in acquiring, at reasonable cost and after the exercise of
reasonable diligence, such servitudes, rights-of-way grants, permits or
licenses, and in those instances where either Party is required to furnish
materials and supplies for the purpose of constructing or maintaining
facilities to enable such Party to fulfill its obligations under this
Agreement, the inability of such Party to acquire, or delays on the part of
such Party in acquiring, at reasonable cost and after the exercise of
reasonable diligence, such materials and supplies.

 

“Gallon” means a U.S. gallon of 231 cubic
inches corrected to 60 degrees Fahrenheit.

 

“Governmental
Authority” means any
foreign or U.S. federal, state, regional, local or municipal governmental body,
agency, instrumentality, board, bureau, commission, department, authority or
entity established or controlled by a government or subdivision thereof,
including any legislative, administrative or judicial body, or any person
purporting to act therefor.

 

“Indemnified Party” has the meaning
assigned to such term in Section 18.1.

 

“Indemnifying Party” has the meaning
assigned to such term in Section 18.1.

 

“Independent
Inspector” means
a licensed Person who performs sampling, quality analysis and quantity
determination of the Products received or delivered.

 

“Interest Rate” means the one-month LIBOR
rate.

 

“Liabilities” means any losses, charges,
damages, deficiencies, assessments, interests, penalties, costs and expenses of
any kind related to or that arise out of this Agreement (including reasonable
attorneys’ fees, other fees, court costs and other disbursements), including
any Liabilities that directly or indirectly arise out of or are related to any
claim, proceeding, judgment, settlement or judicial or administrative order
made or commenced by any third party or Governmental Authority related to or
that arise out of this Agreement.

 

“Minimum Revenue Commitment” has the
meaning set out in Section 3.4.

 

“Month” means a calendar month.

 

“Product” has the meaning described in Attachments
“A” and “B”.

 

“Product Loss”
means any loss of Product occurring as a result of any contamination,
adulteration, mislabeling, misidentification or other loss of or damage to
Product caused by the failure of the Owner to use reasonable industry
procedures in the handling, testing or storage of Product.  Product Loss is not the result of loss of or
damage to Product (i) associated with Product flushing to eliminate
residual particles or other contaminants from pipelines, Tanks, valves or
pumps, (ii) associated with circumstances involving Force Majeure, (iii) caused
by the act or omission of Customer, (iv) due to normal Product
evaporation, shrinkage, line loss, clingage, or tolerance of Product
measurement inaccuracies in compliance with federal or state law, or, in the
absence of either, industry standards, and shall only be considered if in
excess of 0.10% of Product receipts which 0.10% of Product receipts is referred
to as “Product Loss Tolerance”, calculated on a terminal by terminal basis, or (v) regrades
of Product resulting from commingling of Product in pipelines.

 

“Tank” has the meaning described in Attachment
“A”.

 

“Term” has the meaning indicated in Attachment
“A”.

 

“Terminal” has the meaning of an applicable
Terminal or Terminals described in Attachment “A”.

 

“Third Party” means any entity other than
Owner, Customer or their Affiliates.

 

“Third Party Claim” has the meaning
assigned to such term in Section 18.3.

 

“Throughput” shall be all Product delivered
from a Terminal or Terminals.

 

2

 

“Vessel” means an ocean-going tanker, barge or inland barge.

 

Section 2.              Service, Statements, Invoices,
Documents and Records.

 

2.1           Owner will provide services related to
the receipt, storage, throughput, heating, additive and other injection,
blending and delivery of Customer’s Product to and from Customer or on behalf
of Customer into and out of the Tanks at the Terminal and transportation of
Customer’s Product, and provide the facilities reasonably necessary to perform
such services and provide such additional services as may be provided under
this Agreement and its attachments, for the fees, rates and charges contained
in this Agreement.  Those services will
be performed in a manner consistent with Owner’s current practices at the
Terminal and in compliance with Applicable Law.

 

2.2           As
requested by Customer, Owner will transmit to Customer a statement of receipts,
deliveries and ending inventory, copies of individual Tank gauging documents,
pipeline meter tickets, tank truck loading rack bills of lading, scale tickets,
and railroad tank car gauging documents, if any are applicable.  These documents will be transmitted to
Customer at the number or other address indicated in Attachment “A”.

 

2.3           Within
15 days following the end of each Month during the Term of this Agreement,
Owner will submit to Customer, at the address indicated in Attachment “A,” statements
recording the volume of Customer’s Product received into and delivered from the
Terminal during the preceding Month, together with an invoice for amounts due for
services provided during the preceding Month, as applicable and all as set
forth on Attachment “A”.  In case
of any conflict between the documents provided to Customer under Section 2.2
and the Monthly statements provided under this Section, the Monthly statements
provided under this Section will prevail as to the volume of Product
received and delivered by Owner, unless disputed by Customer.

 

2.4           Each
Party will maintain a true and correct set of records pertaining to its
performance of this Agreement and will retain copies of all such records for a
period of not less than two (2) years following termination or
cancellation of this Agreement.  Upon
reasonable prior notice, a Party or its authorized representative may at its
sole cost, during the Term of this Agreement and for the aforesaid two (2) year
period, inspect such records of the other Party during normal business hours at
the other Party’s place of business.

 

Section 3.              Fees, Charges and Taxes.

 

3.1           Customer
will pay Owner for services provided under this Agreement as indicated in Attachment
“A”.

 

3.2           All
fees and charges reflected in Owner’s invoices are due and payable within 15
Business Days of the receipt of Owner’s invoice.  Payment must be made by electronic wire
transfer of same day available Federal funds to Owner’s account and bank, both
as indicated on Owner’s invoice. 
Invoices may be sent by electronic mail and telephone facsimile. If
Customer disputes any portion of an invoice, Customer must pay the undisputed
portion of the invoice.  Overdue amounts
or disputed amounts that are resolved in favor of the Owner will accrue
interest at the Interest Rate from the date that payment is due until paid in
full.  The defaulting Party will pay all
of the other Party’s costs (including reasonable attorney’s fees and court
costs) of collecting past due payments and late payment charges, whether or not
suit is brought.

 

3.3           Customer
will pay any and all taxes, fees or other charges and assessments, (including
any charge or payment in lieu thereof), including inventory, sales taxes on
Terminal services and Product ownership taxes, if any, on Customer’s Product
and Customer’s property at the Terminal. 
Owner shall be responsible for and pay all other applicable taxes levied
upon Owner, including any increases in taxes levied on Owner’s Terminal
(including real property, personal property of Owner or both) as a result of
Customer’s activities at the Terminal that Owner may be required to pay or
collect under Applicable Law.

 

3.4           Subject
to the terms herein, Owner will transport and throughput an amount of Customer’s
Product in the aggregate that will produce revenue to the Owner in an amount at
least equal to $5.0 million per Contract Quarter (the “Minimum Revenue Commitment”).  Any deficiency between the actual charges for
services herein and the Minimum Revenue Commitment for a Contract Quarter shall
be invoiced and paid in accordance with this Section.  Any such deficiency payment shall be credited
against any payments owed by Customer in any of the next succeeding four (4) Calendar
Quarters in excess of the respective Minimum Revenue Commitment for such
Calendar Quarter.  Should the initial

 

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Calendar Quarter under
this Agreement be less than a full calendar three month period, the Minimum
Revenue Commitment for that Calendar Quarter shall be proportionately reduced
to reflect the actual time period.

 

If
Customer is unable for a period of time to transport or throughput the volumes
of Product required to meet the Minimum Revenue Commitment as a result of Owner’s
operational difficulties, prorationing or difficulties with pipeline
connections, then upon written notice by Customer to Owner, the Minimum Revenue
Commitment will be reduced proportionately for such period of time of the
operational difficulties, prorationing or difficulties with pipeline
connections.

 

3.5           Customer
agrees not to challenge, protest or file a complaint, or cause, encourage or
recommend to any Affiliate or any other person that it challenge, protest or
file a complaint with respect to any rates, tariffs, rules, regulations in
effect during the term of the Agreement, as the same may be amended from time
to time provided that such tariffs, regulatory filings or rates do not conflict
with the terms of the Agreement.

 

Section 4.              Operations, Receipts and Deliveries.

 

4.1           Customer’s
Product will be delivered to the Terminal via the mode of transportation
identified in Attachment “A” free of any charge to Owner.  Receipts and deliveries of Product will be
handled within the normal business hours of the Terminal as set forth on Attachment
“A”.  Owner may make temporary
changes in business hours or temporarily close any Terminal because of an
extraordinary event without Customer’s approval.  Owner will notify Customer of such temporary
changes or closure in advance, or as soon after implementation as is
practicable.  Vessels will be loaded and
unloaded on first come, first served basis and Owner will not be responsible
for the payment of any demurrage or costs incurred by Customer or its
transportation carrier for any delay in receiving or delivering the Product or
any other costs or fees in connection with marine receipts and deliveries.

 

4.2           Customer must arrange for and pay all
third party costs related to the receipt or delivery of Customer’s Product to
and from the Terminal. Owner is responsible only to receive or deliver, as the
case may be, the Product at its Terminal. 
Unless otherwise provided by Owner in writing, Customer must provide
notice reasonably acceptable to Owner (in accordance with Section 13)
and to the Terminal containing all necessary shipping instructions, including
without limitation, the identity and quantity of the Product and the tentative
arrival date(s) (the “Arrival Notice”). 
If this Agreement involves marine receipts or deliveries of Product,
Owner will advise Customer concerning the limitations of the Vessel that may be
berthed, including its maximum size, draw, draft and length, the docks and
associated positions to be used for each Product movement, as well as the
minimum pumping rates or pressure, as applicable, or both.  Owner may change Vessel limitation, dock
designation, and pumping rates and pressure criteria from time to time upon
prior reasonable notice to Customer.  If
Owner determines that a Vessel is unsuitable for shipment of Products, as Owner
deems appropriate, Owner may refuse to load or unload such equipment and will
advise the carrier and Customer of the situation immediately, and request
further instructions from the Customer. 
It is the responsibility of Customer to notify the appropriate
authorities and agencies regarding Vessel arrivals.  If Customer requires any change in the
shipping instructions, including, without limitation, the identity of the
Product, Customer must provide notice (in accordance with Section 13)
to the Owner and the Terminal (See Section 2, Terminal and Owner
Address of Attachment “A”) before the arrival of the Product at the
Terminal.  Upon receipt of Customer’s
shipping instructions, Owner and the Terminal will immediately advise Customer
of the Terminal’s availability.  If the
Terminal will not be available to receive or deliver Customer’s Product on the
communicated arrival date, Owner will advise as to the earliest time when
Customer’s Product may be received or delivered at the Terminal.  Customer will ensure that confirmation of the
arrival date(s) and time of the Product will be communicated to Owner and the
Terminal by Customer’s carrier periodically, at intervals of at least 48, 24
and 12 hours in advance of the anticipated date and time of arrival of the
Product.  Notwithstanding Section 13,
such communication may be effected by telephone or facsimile.

 

4.3           If any of Customer’s Vessels (i) fails
to vacate a dock upon completion of loading or discharge, (ii) fails to
discharge or load a barge within twenty-four (24) hours or within thirty-six
(36) hours for an ocean going barge or vessel, or (iii) fails to vacate in
order to conduct repairs, then, after having been notified by Owner to vacate,
Customer shall be responsible for the cost applicable to the berths along with
any costs incurred by any Vessels which would otherwise be occupying such dock
but for the failure of Customer’s Vessel to vacate, save and except any such
costs arising due to delay caused by Owner.

 

4.4           Subject to the restrictions of Attachment
“A” and the Product Loss Tolerance and Product Loss, Owner will deliver to
Customer, or to such Third Parties as Customer may direct, the Product held by
Owner at the Terminal for the account of Customer.  Customer is responsible for providing to
Owner documentation required to authorize deliveries for or on its behalf from
the Terminal.

 

4

 

4.5           Customer may use the Tanks only for
storage of the Product and may use the Tanks for storage of other products only
with prior written consent of Owner.  If
a special method of storing or handling Product is required, then Customer must
notify Owner in sufficient time to enable Owner to consider whether it will
accept the proposed changes in the Product stored or the method of storing or
handling the Product and to take the necessary preparatory measures if it
agrees with such changes.  Failing such
notice, Owner will not be liable for losses or damage incurred during the
storage and handling of the Products, nor will Owner be obligated to provide
such special storage and handling service. 
It is understood that the cost of any additional or special equipment
required by Customer or of alterations made necessary by the nature of Customer’s
Product, will be for the account of Customer and Customer will be responsible
for the expense of any necessary cleaning of the storage and handling
equipment, including, without limitation, Tanks, pipelines, pumps, hoses,
meters, and loading arms, unless otherwise explicitly stated in this
Agreement.  All fixtures, equipment and
appurtenances attached to the Tanks, pipelines and other facilities of the Terminal
by either Party are and will remain the property of Owner.  No such items may be installed by Customer
without the prior written consent of Owner.

 

4.6           Within
10 days following termination of this Agreement (subject to any lien that Owner
may have on Product), Customer will remove and properly dispose of all Product,
residue, scale, and any other accumulation from the Tank and pipelines and
clean both Tank interior and pipelines then in use for light Products to a
condition suitable for the storage of ultra low sulfur diesel fuel.  If the Tank and pipelines are then in heavy
oil use, they shall be cleaned to a condition suitable for No. 6 fuel oil
storage.  Customer shall reimburse Owner
for all costs and expenses reasonably incurred by Owner in taking such action,
plus a 15% handling fee, as well as the cost of storage and handling of the
Product removed, if any, at a rate of $0.01 per Barrel per day in addition to
any other fees due hereunder, which fees and rates will continue to be charged
if Customer shall not have removed Customer’s Product from the Tanks within 10
days from the date of termination hereof.

 

4.7           If any Governmental Authority requires
installation of any improvement, alteration or addition to any Tank or other
equipment at the Terminal for purposes of compliance with Applicable Law that
would require Owner to make substantial and unanticipated capital expenditures,
other than continued maintenance and capital expenditures not affected by such
requirement, Owner will notify Customer of (i) the cost of making any such
improvement, alteration or addition, after Owner’s efforts to mitigate such
costs, (ii) when such improvement, alteration or addition must be
completed, and (iii) Customer’s share of such costs.  Owner will not be required to make any
improvements, alterations or additions to the Terminal in such circumstance,
unless Customer either agrees to pay its share of such costs in the manner
provided below or agrees in good faith with Owner for a ratable surcharge to
serve as a monthly fee increase.  If
Customer elects, after negotiation with Owner in good faith, not to share in
such costs and Owner chooses not to pay for such improvement, alteration or
addition in lieu thereof, and if Owner does not direct the affected Product to
mutually acceptable terminaling assets owned by Owner or its Affiliates, either
Party may terminate or release the affected facilities or Tanks from this
Agreement, with an equivalent reduction of the fees herein, including the
Minimum Revenue Commitment, by giving the other Party notice of its intention
no later than 30 days after Owner’s receipt of notice of Customer’s election
not to share in such costs.  If Customer
elects to pay its share of such costs, Owner shall likewise pay its share of
such costs and proceed with the installation of the required improvement,
alteration or addition.  Customer may
elect to either pay such proportionate share of costs in one lump sum or pay
its proportionate share of the costs on a prorated Monthly basis over the
remaining Term of this Agreement.  In
addition to installation costs, these costs will include engineering and
interest expense (at a rate of 1% over the prime lending rate as reported in
the Wall Street Journal on the date of completion of such installation) and
subsequent reasonable expenses, if any, of operating or maintaining such
installation.

 

4.8           In the case of segregated service
provided by Owner, Customer will be responsible for providing all Tank bottoms
and line fill, and in the case of commingled service, Customer will be
responsible for providing its proportional share of Tank bottoms and line fill.

 

Section 5.              Product Quality Standards and
Requirements.

 

5.1           Customer
warrants to Owner that all Product tendered by or for the account of Customer
for receipt by the Terminal will conform to the specifications for such Product
set forth in Attachment “B”, attached to this Agreement and included in
it for all purposes by this reference, and will comply with industry standards
and all Applicable Law.  Owner will not
be obligated to receive Product into the Terminal that is contaminated or that
otherwise fails to meet those specifications, nor will Owner be obligated to
accept Product that fails to meet Product grade set forth in the Arrival
Notice.  Owner may rely upon the
specifications and representations of Customer set forth in the Arrival Notice
as to Product quality.  Should Owner
remove or dispose any water or other material in or associated with the Product
at any time, Customer shall pay or reimburse all costs and expense associated
with such removal or disposal.

 

5

 

5.2           The
quality of Product tendered into the Terminal for Customer’s account must be
verified either by Customer’s laboratory analysis, or by an Independent
Inspector’s analysis indicating that the Product so tendered meets Owner’s
minimum Product specifications set forth in Section 5.1 above.  Such analysis may be conducted on a periodic
basis in accordance with a quality compliance program implemented by Customer
,which program shall be subject to the approval of Owner, which approval shall
not be unreasonably withheld.  All costs
associated with such compliance program shall be borne by Customer.  Upon reasonable notice to Customer, Owner, at
its expense, may sample any Product tendered to Owner for Customer’s account
for the purpose of confirming the accuracy of the analysis.

 

5.3           Unless
Owner has provided segregated storage facilities for Products (see Attachment
“A”), Owner may commingle fungible products received from or on behalf of
Customer with those fungible products of other Third Parties using the
Terminal.  At least twenty-four (24)
hours prior to the time of each receipt from Customer, a certificate setting
forth quality, grade and other specifications of the Product must be delivered
to Owner.  Each Party may at all
reasonable times make appropriate tests to determine whether Product stored or
delivered meets those specifications. 
Owner will be liable to Customer and any of Customer’s purchasers by
reason of contamination of Product that fails to meet Customer’s specifications
only to the extent such contamination involves a Product Loss.

 

Section 6.              Title and Custody of Product.

 

6.1           Title
to Customer’s Product will remain with Customer at all times subject to any
lien in favor of Owner created pursuant to the terms of this Agreement or under
Applicable Law.  Owner will assume
custody of the Product at the time such Product passes the flange connection
between the Third Party transportation carrier and that of Owner’s receiving
facilities.  For Vessel receipts at the
Terminal, custody of Products shall pass to Owner upon receipt at the Terminal
when the Products pass the last permanent flange connection between the Vessel’s
discharge manifold and the receiving pipeline at the Terminal.  If Products are delivered to Customer by
Vessel, custody shall pass to Customer at the point where Products pass the
last permanent flange connection between the Terminal pipeline and the Vessel.  For pipeline receipts at the Terminal, custody
of the Products shall pass to Owner at the time the Products pass the flange
connection between the connecting pipeline and that of Owner’s receiving
facilities.  If Products are delivered to
Customer by pipeline, custody of the Products shall pass to Customer when the
Products pass the flange connection between Owner’s delivery facilities and
that of the connecting pipeline.  If
Products are delivered to Customer by truck rack, custody of the Products shall
pass to Customer when the Products pass the last permanent flange connection
between the truck of Customer’s transportation carrier and Owner’s loading
assembly.

 

6.2           Except
for damages, losses, or injury caused by Owner’s gross negligence, Owner shall
have no responsibility for any loss, damage or injury to persons or property
(including the Products) arising out of possession or use of the Product,
except to the extent that such loss, damage or injury involves a Product Loss.

 

Section 7.              Limitation of Liability and Damages.

 

7.1           Utilizing the prices set out in Section 8
of Attachment “A”, the maximum liability of Owner for Product Loss will
not exceed, and is strictly limited to, the market value of the Product at the
time of the Product Loss or immediately prior to its contamination, plus the
costs and expenses actually, reasonably and necessarily incurred by Customer or
Customer’s immediate purchaser in damage to equipment, cleaning and repairing
trucks, and facilities into which such Product was delivered at the Terminal,
plus any fines and penalties actually levied against Customer or Customer’s
immediate purchaser by reason of such fault on Owner’s part.  Owner may, in lieu of payment for Product,
replace such Product with Product of like grade and quality.

 

7.2           EXCEPT FOR THE PARTIES’ INDEMNIFICATION
OBLIGATIONS WITH RESPECT TO CLAIMS OF THIRD PARTIES, THE PARTIES’ LIABILITY FOR
DAMAGES HEREUNDER IS LIMITED TO DIRECT, ACTUAL DAMAGES ONLY AND NEITHER PARTY
SHALL BE LIABLE TO THE OTHER FOR SPECIFIC PERFORMANCE, LOST PROFITS OR OTHER
BUSINESS INTERRUPTION DAMAGES, OR SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE,
EXEMPLARY OR INDIRECT DAMAGES, IN TORT, CONTRACT OR OTHERWISE, OF ANY KIND,
ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE PERFORMANCE, THE SUSPENSION OF
PERFORMANCE, THE FAILURE TO PERFORM, OR THE TERMINATION OF THIS AGREEMENT.  Each Party acknowledges its duty to mitigate
damages hereunder.

 

6

 

Section 8.              Product Measurement.

 

8.1           Quantities
of Product received into and delivered from the Terminal shall be determined as
follows:  (i) for pipeline
deliveries and receipts, volumes shall be determined by pipeline meters or
shore tank gauges, where applicable, and (ii) for deliveries and receipts
by Vessel or truck, volumes shall be measured by the following methods in order
of priority: (x) proven API-approved meters, (y) static terminal tank gauges or
scales, as applicable.  If tankage has
movements in or out (active Tanks) during the measurement process, they shall
be manually gauged and metered, if applicable and as necessary, and corrected
in the reasonable judgment of Owner to reflect actual quantities received into
and delivered from such active Tanks. 
Absent fraud or manifest error, the quantities of Products in storage at
any time will be determined from Terminal inventory records of receipts and
deliveries.  Unless indicated otherwise,
quantity determinations will be based on a Barrel of Product and shall be
determined in accordance with the latest established API/ASTM standards for the
method of delivery.  All volumes shall be
temperature corrected to 60°F in accordance with the latest supplement or
amendment to ASTM-IP petroleum measurement tables (ASTM designated D#1250.
table 6(b)).  Gauging of Product
received, delivered and in storage will be taken jointly by representatives of
the Parties; provided, that if Customer does not have representatives present
for gauging, Owner’s gauging will be conclusive, absent fraud or manifest
error.  Customer may use an Independent
Inspector at its own expense.

 

8.2           Terminal meters and scales will be
calibrated periodically and upon each completion of repair or replacement of a
meter, at the meter or scale owner’s expense. 
Such calibration shall be in accordance with the latest applicable
API/ASTM standards.  If a meter or scale
is determined by either Party to be defective or inoperative, such Party shall
immediately notify the other Party, and it will be the responsibility of the
Owner to promptly make repairs or replacements. 
Product received or delivered through a facility having an inoperative
or defective meter or scale will be measured based upon before and after static
Tank gauges and any active Tanks measured in accordance with Section 8.1.  In such event, the Parties shall appoint a
mutually acceptable Independent Inspector to gauge the applicable Tanks and the
findings of the Independent Inspector shall be final and binding on the
Parties, except for fraud or manifest error. 
The Parties shall share equally the cost of the Independent Inspector under
this Section 8.2.

 

Section 9.              Product Loss and Product Gain.

 

9.1           During
such time as Owner has custody of the Product pursuant to Section 6,
Owner will indemnify Customer against and is responsible for any Product Loss
that occurs while the Product remains in storage based on measurements of each
Product grade.  In the case of Product
that has been delivered from the Terminal, Owner will be responsible for any
Product Loss occurring while the Product was in storage and the Tank roofs were
floating, provided Customer gives Owner notice of the claim within thirty (30)
days after delivery of such Product from the Terminal.  In the event of the foregoing Product Losses,
the total Barrels of net Product lost each month will be determined and will
either be replaced by Owner or Owner will reimburse Customer the cost of such
Product in accordance with Section 7.

 

9.2           Each
Month, Owner will balance the Terminal in accordance with Section 8 to
determine the net gain or loss by Product, excluding any Product Loss in the
calculation.  Owner will deduct the
Product Loss Tolerance from the Customer’s receipts into the Terminal and be
obligated to redeliver to the Customer the net amount of Product.  Any such remaining net gains or losses shall
belong to Owner and Owner shall sell such net gains or losses to Customer on
the last day of each calendar Month, at the value determined in accordance with
Section 7.

 

Section 10.            Force Majeure.

 

10.1         If
either Party is unable to perform or is delayed in performing, wholly or in
part, its obligations under this Agreement, other than the obligation to pay
funds when due, as a result of an event of Force Majeure, that Party may seek
to be excused from such performance by giving the other Party prompt written
notice of the event of Force Majeure with reasonably full particulars
thereof.  The obligations of the Party
giving notice, so far as they are affected by the event of Force Majeure, will
be suspended during, but not longer than, the continuance of the event of Force
Majeure.  The affected Party must act
with commercially reasonable diligence to resume performance and notify the
other Party that the event of Force Majeure no longer affects its ability to
perform under the Agreement.  If Owner is
excused from providing service pursuant to this Agreement due to an event of
Force Majeure, the fees hereunder, including the Minimum Revenue Commitment,
not already due and payable will be excused or proportionately reduced, as
appropriate, for so long as the Owner’s performance is excused due to the event
of Force Majeure.

 

10.2         The
requirement that any Force Majeure event be remedied with all reasonable
dispatch shall not require the settlement of strikes, lockouts, or other labor
difficulty by the Party claiming excuse due to an event of Force Majeure
contrary to its wishes.

 

7

 

10.3         If
either Party is rendered unable to perform by reason of an event of Force
Majeure for a period in excess of one (1) year, then either Party may
terminate this Agreement upon written notice to the other Party.

 

Section 11.            Inspection of and Access to Terminal.

 

11.1         Customer
shall have the right during Owner’s normal business hours and after reasonable
notice to Owner and the Terminal so as not to disrupt the Terminal’s or Owner’s
operations (i) to make periodic operational inspections of the Terminal, (ii) to
conduct audits of any pertinent books and records, including those related to
receipts, deliveries and inventories of Products, and (iii) to conduct physical
verifications of the amount of Products stored in the Terminal.  Customer’s right and that of its authorized
representatives to enter the Terminal will be exercised by Customer in a way
that will not interfere with or diminish Owner’s control over or its operation
of the Terminal and will be subject to reasonable rules and regulations
promulgated by Owner.  Customer
acknowledges that under this Agreement none of Customer’s vehicles or vehicles
acting on behalf of Customer will be granted access to the Terminal until the
owner of such vehicles and its employees or agents have been properly qualified
and such owner has executed a “Terminal Access Agreement”
substantially in the form
of Attachment “C”.  Customer
acknowledges the terms of the Terminal Access Agreement.  If there is any conflict between the terms of
this Agreement and those contained in the Terminal Access Agreement, the terms
of this Agreement shall take precedence.

 

11.2         As
soon as possible after the Commencement Date of this Agreement, Customer shall
notify Owner of those third parties to whom Owner may deliver Products from the
Terminal.  Customer must furnish 48 hours
notice of any additions or deletions to its list of approved third parties.

 

11.3         Customer
acknowledges that any grant of the right of access to the Terminal under this
Agreement or under any document related to this Agreement is a grant of a
license only and shall convey no interest in or to the Terminal or any part of
it, and may be withdrawn by Owner at its discretion at any time.

 

Section 12.            Assignment.

 

This
Agreement shall be binding upon and shall inure to the benefit of the
successors and assigns of the Owner. 
Customer covenants that it will not by operation of law or otherwise
assign, hypothecate, pledge, encumber or mortgage this Agreement, or any part
of or right or obligation under it, or permit the Tanks to be used by others
without the prior written consent of Owner and Owner’s conflicts committee in
each instance.  For purposes of this
Section, “assign” will be considered to include any change in the majority
ownership or control of Customer.  Any
attempt by Customer to assign, hypothecate, encumber or mortgage this Agreement
will be null and void.  The consent by
Owner to any assignment, hypothecation, pledge, encumbrance, mortgage or use of
this Agreement or the Tanks by others will not constitute a waiver of Owner’s
right to withhold its consent to any other or further assignment,
hypothecation, pledge, encumbrance, mortgage or use of the Agreement or Tanks by
others.  The absolute and unconditional
prohibitions contained in this Section and Customer’s agreement to them
are material inducements to Owner to enter into this Agreement and any breach
of them will constitute a material default under this Agreement permitting
Owner to exercise all remedies provided for in this Agreement or by law.

 

Section 13.            Notice.

 

Any
notice required under this Agreement must be in writing and will be deemed
received when actually received and delivered by (i) United States mail,
certified or registered, return receipt requested, (ii) confirmed
overnight courier service, or (iii) confirmed facsimile transmission
properly addressed or transmitted to the address of the Party indicated in Attachment
“A” or to such other address or facsimile number as one Party shall provide
to the other Party in accordance with this provision.

 

Section 14.            Compliance with Law and Safety.

 

14.1.        Customer warrants that the Products
tendered by it have been produced, transported, and handled, and Owner warrants
that the services provided by it under this Agreement are in full compliance
with all Applicable Law.  Each Party also
warrants that it may lawfully receive and handle such Products, and it will
furnish to the other Party any evidence required to provide compliance with
Applicable Law and to file with applicable Governmental Authorities reports
evidencing such compliance with Applicable Law.

 

8

 

14.2.        Customer will furnish Owner with
information (including Material Safety Data Sheets) concerning the safety and
health aspects of Products stored under this Agreement.  Owner will communicate such information to
all persons who may be exposed to or may handle such Products, including
without limitation, Owner’s employees, agents and contractors.

 

Section 15.            Default,
Waiver and Remedies.

 

15.1         The
occurrence of any of the following events shall constitute an “Event of
Default” hereunder:

 

(a)           failure of either Party to pay any
interest or fees hereunder within fifteen (15) Business Days of when due
hereunder, in each case whether at stated maturity, by acceleration, or
otherwise;

 

(b)           either Party fails to perform any
obligation to the other Party or breaches any covenant made to the Party under
this Agreement, which, if capable of being cured, is not cured to the
satisfaction of the other Party (in its sole discretion) within five (5) Business
Days from the date that such Party receives notice that corrective action is
needed;

 

(c)           either Party becomes Bankrupt;

 

(d)           any material covenant, agreement or
obligation of any Party contained in or evidenced by this Agreement shall cease
to be enforceable in accordance with its terms;

 

(e)           either Party to this Agreement shall
repudiate, deny or disaffirm its obligations under this Agreement;

 

(f)            this Agreement is cancelled, terminated,
revoked or rescinded without the express prior consent of the other Party, or
any Proceeding shall have been commenced by any person (other than either
Party) seeking to cancel, revoke, rescind or disaffirm the obligations of any
Party to this Agreement (unless such Party is contesting the Proceeding in good
faith and such Proceeding is withdrawn or dismissed with prejudice within
fifteen (15) days); or

 

(g)           any court or other Governmental Authority
shall issue a judgment, order, decree or ruling to the effect that any of the
obligations of any Party to this Agreement is illegal, invalid or
unenforceable.

 

15.2         The waiver by the non-defaulting Party of
any right under this Agreement will not operate to waive any other such right
nor operate as waiver of that right at any future date upon another default by
either Party under this Agreement and a single or partial exercise of any
right, power or privilege will not be presumed to preclude any subsequent or
further exercise of that right, power, or privilege or the exercise of any
other right, power, or privilege. 
Nothing in this Section 15.2 is intended in any way to limit
or prejudice any other rights or remedies the non-defaulting Party may have
under this Agreement, under Applicable Law or in equity.  The remedies provided in this Agreement are
not exclusive and, except as otherwise expressly limited by this Agreement, are
in addition to all other remedies of the non-defaulting Party at law or in
equity.  Acceptance by Owner of any
payment from Customer for any charge or service after termination of this
Agreement shall not be deemed a renewal of this Agreement under any
circumstances.  Notwithstanding any
provision in this Agreement to the contrary, if Customer is not then in
default, Customer shall be entitled to remove its Product from the Terminal at
any time if Owner is in default under this Agreement.

 

15.3         Upon the occurrence and during the
continuance of an Event of Default, and at any time thereafter, the
non-defaulting Party may, by delivery of written notice to the defaulting
Party, take any or all of the following actions, without prejudice to the
rights of the non-defaulting Party to enforce its claims against the defaulting
Party:  (a) withhold or suspend its
performance under this Agreement without prior notice; (b) immediately
terminate this Agreement; and (c) enforce any and all rights and interests
created and existing under this Agreement or arising under Applicable Law, including,
without limitation, all rights and remedies existing under any security
documents and all rights of setoff.  The
enumeration of the foregoing rights is not intended to be exhaustive and the
exercise of any right shall not preclude the exercise of any other rights, all
of which shall be cumulative.

 

15.4         Notwithstanding anything hereinabove to
the contrary, the sale or transfer by Owner of all or part of its Terminals and
related assets to an Affiliate, whether by sale or by operation of law, shall
not constitute an Event of Default. 
Likewise, the sale or transfer by Owner of all or part of the Terminals
and related assets, to a non-Affiliate shall not constitute an Event of Default
unless (i) such sale or transfer would have a material adverse effect on
the economics of the transactions contemplated under this Agreement, or (ii) such
sale or transfer is made to a Third Party that Customer

 

9

 

reasonably deems to be unacceptable based upon a
review of such Third Party’s creditworthiness, financial capabilities, and
ability to operate the Terminals.

 

15.5         Disposal of Product. 
Upon termination of this Agreement, Customer shall sell and dispose of
any of its remaining Product stored at a Terminal that is subject to this
Agreement.

 

Section 16.            Insurance.

 

16.1         Insurance
Required by Both Parties.  Throughout
the Term, each Party and its agents shall, at such Party’s sole expense, carry
and maintain in full force and effect insurance coverages, with insurance
companies rated not less than A-, IX by A.M. Best or otherwise reasonably
satisfactory to the other Party, of the following types and amounts:

 

(a)           Workers
Compensation coverage in compliance with the Applicable Law of the states
having jurisdiction over each employee and employer’s liability coverage, and
coverage under the Federal Longshoremen and Harbor Workers’ Act, the Jones Act,
and the Federal Death on the High Seas Act for all marine and vessel matters,
in a minimum amount of one million dollars ($1,000,000) per accident, one
million dollars ($1,000,000) disease per employee and one million dollars
($1,000,000) disease policy limit.

 

(b)           Automobile
liability coverage in a minimum amount of one million dollars ($1,000,000).

 

(c)           Comprehensive
or commercial general liability coverage and umbrella excess liability
coverage, which includes bodily injury, broad form property damage and
contractual liability coverages.

 

(d)           If
Customer’s employees will enter the Terminal or perform any activity near the Terminal
for any reason under this Agreement, Employers liability with limits of $1
million (combined single limit) for each accident, including occupational
disease coverage with a limit of $100,000 for each employee and a $1 million
policy limit, including coverage under the Federal Longshoremen and Harbor
Workers’ Act, the Jones Act, the Federal Death on the High Seas Act and general
maritime remedies of seamen including transportation, wages, maintenance and
cure whether the action is in rem or in personam.

 

16.2         Insurance
Required by Owner.  In addition to
the insurance required pursuant to Section 16.1, Owner shall provide
comprehensive or commercial general liability coverage and umbrella excess
liability coverage, which includes Product Loss for Product in Owner’s care,
custody and control, and “sudden and accidental pollution” liability coverages
(excluding events that result in acidic deposition).

 

16.3         To
the extent Customer utilizes its own or contracted Vessels to deliver or
receive Product, Customer shall maintain or cause to be maintained at its
expense or at vessel owners’ expense the following insurance on the
Vessels:  Hull and Machinery insurance,
to the market value of the Vessels, and P&I insurance (including pollution
liability but not tower’s liability covering cargo) including full mutual entry
in an international or American Group P&I Club with IGA pooling, or
alternatively, maritime liability coverage evidenced on the SP-23 form or its
equivalent, including collision liability, tower’s liability except cargo, and
liability for seepage, pollution, containment and cleanup, with extensions for
marine contractual liability with a minimum liability limit of $500
million.  Pollution liability coverage should
cover, if outside of a P&I Club entry, bodily injury, property damage,
including cleanup costs and defense costs resulting from sudden and gradual
pollution conditions of contaminates or pollutants into or upon the land,
atmosphere, or any water course or body of water.  WQ15 should be utilized as necessary to
comply with U.S. regulations, with limits of at least $10 million.  Customer shall have Owner named as an
additional insured in said policies, with a full waiver of assignment and
subrogation from underwriters.

 

16.4         Additional
Insurance Requirements.

 

(a)           Each Party
shall cause its insurance carriers to furnish to the other Party insurance
certificates, in a form reasonably satisfactory to the other Party, evidencing
the existence of the coverages required pursuant to Sections 16.1 and 16.2.  Such certificates shall specify that no
insurance shall be canceled or materially changed during the Term unless prior
written notice is given at least thirty (30) days’ prior to cancellation or
prior to a material change becoming effective. 
Renewal certificates shall be provided within thirty (30) days of
expiration of the policy under which coverage is maintained.

 

(b)           The
foregoing policies shall include an endorsement that the underwriters agree to
waive all

 

10

 

rights of subrogation to the extent of each Party’s obligations.  Further, each Party shall be named as an
additional insured under the other Party’s policies, to the extent of the
indemnities required under the Agreement.

 

(c)           The mere purchase
and existence of insurance coverage shall not reduce or release either Party
from any Liabilities incurred or assumed under this Agreement.

 

(d)           In
the event of a Product Loss for which Owner must indemnify Customer under this
Agreement, Owner’s insurance shall be the primary and exclusive coverage for
such loss, notwithstanding the existence of other valid and collectible
insurance.

 

Section 17.            Security and Credit.

 

17.1         If Customer
should fail to pay such sums owed by it to Owner, Owner shall provide Customer
with notice of default as provided in this Agreement and an opportunity to cure
such default within a period of fifteen (15) days.  If Customer has not cured such default within
such fifteen (15) day cure period, Owner may proceed in accordance with
Applicable Law to recover its damages, including, without limitation, all
costs, reasonable attorney fees, and expenses incurred by Owner in the recovery
of fees owed to Owner by Customer.

 

17.2         If at
any time Owner believes in good faith that the financial responsibility of the
Customer has been impaired or is unsatisfactory, advance cash payment or other
security, including letters of credit, will be given by Customer upon demand to
cover the value of all anticipated storage and other fees, as well as the value
of Products delivered for the account of Customer in the event that Customer
has a negative inventory of its own Products.

 

17.3         If any
insolvency, bankruptcy, receivership, or similar proceedings are initiated by
or against Customer, on the day immediately before such event, any fees for
services rendered or to be rendered under this Agreement and any fees required
to be paid for the remaining Term of this Agreement, will become immediately
due and payable and this Agreement will terminate, without prejudice to any
other rights or remedies it may have under this Agreement or the law.

 

Section 18.            Indemnity.

 

18.1         Indemnity.  Each Party (the “Indemnifying Party”) shall
indemnify and hold the other Party, its Affiliates, and their employees, directors,
officers, representatives, agents and contractors (collectively, the “Indemnified
Party”) harmless from and against any and all Liabilities arising from the
Indemnifying Party’s (i) breach of this Agreement, (ii) negligence or
willful misconduct of it, its Affiliates and their employees, directors,
officers, representatives, agents or contractors, (iii) failure to comply
with Applicable Law with respect to the sale, transportation, storage, handling
or disposal of the Product, unless and to such extent that such liability
results from the Indemnified Party’s negligence or willful misconduct.

 

18.2         No Third
Party Rights.  The Parties’
obligations to defend, indemnify and hold each other harmless under the terms
of this Agreement shall not vest any rights in any Third Party, whether a
Governmental Authority or private entity, nor shall they be considered an
admission of liability or responsibility for any purposes other than those
enumerated in this Agreement.  The terms
of this Agreement are enforceable only by the Parties, and no limited partner
of Owner shall have a separate right to enforce any provision of this
Agreement, or to compel any Party to comply with the terms of this Agreement.

 

18.3         Notice.  The Indemnified Party shall notify the
Indemnifying Party as soon as practicable after receiving notice of any claim
or proceeding brought against it that might give rise to an indemnity claim
under this Agreement (a “Third Party Claim”) and shall furnish to the
Indemnifying Party the complete details within its knowledge.  Any delay or failure by the Indemnified Party
to give notice to the Indemnifying Party shall not relieve the Indemnifying
Party of its obligations except to the extent, if any, that the Indemnifying
Party shall have been materially prejudiced by reason of such delay or failure.

 

18.4         Claims.  The Indemnifying Party shall have the right
to assume the defense, at its own expense and by its own counsel, of any Third
Party Claim; provided, however, that such counsel is reasonably acceptable to
the Indemnified Party.  Notwithstanding
the Indemnifying Party’s appointment of counsel to represent an Indemnified
Party, the Indemnified Party shall have the right to employ separate counsel
reasonably acceptable to the Indemnifying Party, and the Indemnifying Party
shall bear the reasonable fees, costs and expenses of such separate counsel if
in such Party’s reasonable judgment (i) the use of counsel chosen by the
Indemnifying Party to represent the Indemnified Party would present such
counsel with a

 

11

 

conflict of interest or (ii) the Indemnifying Party shall not have
employed counsel to represent the Indemnified Party within a reasonable time
after notice of the institution of such Third Party Claim.  If requested by the Indemnifying Party, the
Indemnified Party agrees to reasonably cooperate with the Indemnifying Party
and its counsel in contesting any claim or proceeding that the Indemnifying
Party defends, including, if appropriate, making any counterclaim or
cross-complaint.  All reasonably incurred
costs and expenses incurred in connection with the Indemnified Party’s
cooperation shall be borne by the Indemnifying Party.  

 

18.5         Settlement.  No Third Party Claim may be settled or
compromised by the Indemnified Party without the consent of the Indemnifying
Party or (ii) by the Indemnifying Party without the consent of the
Indemnified Party.  Notwithstanding the
foregoing, an Indemnifying Party shall not be entitled to assume responsibility
for and control of any proceeding if such proceeding involves an Event of
Default by the Indemnifying Party under this Agreement which shall have
occurred and be continuing.

 

Section 19.            Construction
of Agreement.

 

19.1         Headings.  The headings of the sections and subsections
of this Agreement are for convenience only and shall not be used in the
interpretation of this Agreement.

 

19.2         Amendment
or Waiver.  This Agreement may not be
amended, modified or waived except by written instrument executed by officers
or duly authorized representatives of the respective Parties, and required
approval by the Conflicts Committee of Owner.

 

19.3         Severability.  Any provision of this Agreement that is
prohibited or not enforceable in any jurisdiction shall, as to that jurisdiction,
be ineffective only to the extent of the prohibition or lack of enforceability
without invalidating the remaining provisions of this Agreement, or affect the
validity or enforceability of those provisions in another jurisdiction or the
validity or enforceability of this Agreement as a whole.

 

19.4         Entire
Agreement and Conflict with Attachments. 
This Agreement (including Attachments and related Schedules) contains
the entire and exclusive agreement between the Parties with respect to the
subject matter hereof, and there are no other promises, representations, or
warranties affecting it.  The terms of
this Agreement may not be contradicted, explained or supplanted by any usage of
trade, course of dealing or course of performance and any other representation,
promise, statement or warranty made by either Party or their agents that
differs in any way from the terms contained herein will be given no force or
effect.  In the case of any conflict
between the body of this Agreement and any of its Attachments or Schedules,
those contained in the Attachments and Schedules will govern.

 

Section 20.            Law.

 

This
Agreement will be construed and governed by the laws of the State of Colorado
except the choice of law rules of that State that may require the
application of the laws of another jurisdiction.

 

This Agreement has been
executed by the authorized representatives of each Party as indicated below
effective as of the Effective Date.

 

 

	
  TRANSMONTAIGNE
  PARTNERS L.P.

  	
  TRANSMONTAIGNE
  PRODUCT SERVICES INC.

  
	
  By: TransMontaigne G.P. L.L.C.

  It’s General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Donald H. Anderson

  	
   

  	
  By:

  	
  /s/ William S.
  Dickey 

  	
   

  
	
  Name:   Donald H. Anderson

  	
  Name: William S.
  Dickey

  
	
  Title: Chief
  Executive Officer

  	
  Title: President
  and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  COASTAL FUELS
  MARKETING, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ William S.
  Dickey

  	
   

  	
   

  
	
  Name: William S.
  Dickey

  	
   

  
	
  Title: President
  and Chief Operating Officer

  	
   

  

 

12Exhibit 10.1

                             FIFTH AMENDMENT TO THE
                        HEICO SAVINGS AND INVESTMENT PLAN

        THIS FIFTH AMENDMENT (the "Amendment"), made as of the 25th day of
March, 2005, to the HEICO Savings and Investment Plan (the "Plan"), by HEICO
Corporation, a Florida corporation (the "Company").

                              W I T N E S S E T H:

        WHEREAS, the Company maintains the Plan for the sole and exclusive
benefit of its eligible participants and their respective beneficiaries under
the terms and provisions of the Internal Revenue Code of 1986, as amended; and

        WHEREAS, pursuant to Section 15.01 of the Plan, the Company has the
power to amend the Plan;

        NOW, THEREFORE, the Plan shall be amended as follows:

        EFFECTIVE AS OF MARCH 28, 2005:

1.      Section 10.01(c)(1) is hereby amended in its entirety to read as
        follows:

                "If the value of a Participant's vested Accounts to be
                distributed is less than or equal to $1,000, computed on the
                Participant's Termination Date, the Participant's vested Account
                balance shall be distributed in a lump sum payment as soon as
                administratively feasible after his Termination Date."

2.      Section 10.01(c)(2) is hereby amended in its entirety to read as
        follows:

                "If the value of a Participant's vested Accounts as of his
                Termination Date is greater than $1,000, the Participant's
                consent to a distribution shall be required; provided that,
                notwithstanding the lack of consent, distribution shall be made
                no later than the date established under Section 10.06 for
                mandatory distributions."

<PAGE>

3.      The last sentence of Section 10.01(c)(3) is hereby amended in its
        entirety to read as follows:

                "If the value of the Participant's vested Accounts as so
                determined is $1,000 or less, the Plan shall immediately
                distribute the Participant's entire vested Account balance."

4.      Section 10.06(d) is hereby amended in its entirety to read as follows:

                "Notwithstanding the foregoing provisions of this Section 10.06,
                if the value of a Participant's vested Accounts to be
                distributed is less than or equal to $1,000, computed on the
                Participant's Termination of Employment, the Participant's
                vested Account balance shall be distributed in a lump sum
                payment as soon as practicable after his Termination of
                Employment."

5.      In all other respects, the Plan shall remain unchanged by the Amendment.

        IN WITNESS WHEREOF, the Company has caused this instrument to be
executed the day and year first above written.

                                        HEICO Corporation, a Florida corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

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