Document:

Exhibit 10.1

 

$400,000,000

 

 

AMENDED
AND RESTATED SENIOR SECURED WORKING CAPITAL CREDIT

FACILITY

 

Dated
as of May 27, 2005

 

among

 

TRANSMONTAIGNE
INC.,

 

as
Borrower,

 

EACH
OF THE FINANCIAL INSTITUTIONS

INITIALLY A SIGNATORY HERETO,

TOGETHER WITH THOSE ASSIGNEES

PURSUANT HERETO,

 

as
Lenders,

 

 

JPMORGAN CHASE BANK, N.A. and UBS AG, STAMFORD BRANCH,
as Syndication

Agents,

 

SOCIÉTÉ
GÉNÉRALE, NEW YORK BRANCH and WELLS FARGO FOOTHILL, LLC, as

the Documentation Agents

 

and

 

WACHOVIA
BANK, NATIONAL ASSOCIATION,

 

as
Agent

 

 

WACHOVIA
CAPITAL MARKETS, LLC,

As Sole Lead Arranger, Manager and Book Runner

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
  1.1

  	
  General Definitions

  	
   

  
	
  1.2

  	
  Accounting Terms and
  Determinations

  	
   

  
	
  1.3

  	
  Other Definitional Terms

  	
   

  
	
  ARTICLE
  II

  	
  LOANS

  	
   

  
	
  2.1

  	
  Revolving Loans and
  Swing Loans

  	
   

  
	
  2.2

  	
  Optional
  and Mandatory Prepayments; Reduction of Revolving Credit Committed Amount

  	
   

  
	
  2.3

  	
  Payments and Computations

  	
   

  
	
  2.4

  	
  Maintenance of Account

  	
   

  
	
  2.5

  	
  Statement of Account

  	
   

  
	
  2.6

  	
  Taxes

  	
   

  
	
  2.7

  	
  Sharing of Payments

  	
   

  
	
  2.8

  	
  Allocation
  of Payments; Pro Rata Treatment

  	
   

  
	
  2.9

  	
  Extensions and
  Conversions

  	
   

  
	
  2.10

  	
  Replacement of Lender

  	
   

  
	
  ARTICLE III

  	
  LETTERS OF CREDIT

  	
   

  
	
  3.1

  	
  Issuance

  	
   

  
	
  3.2

  	
  Notice and Reports

  	
   

  
	
  3.3

  	
  Participation

  	
   

  
	
  3.4

  	
  Reimbursement

  	
   

  
	
  3.5

  	
  Repayment with
  Revolving Loans

  	
   

  
	
  3.6

  	
  Renewal, Extension

  	
   

  
	
  3.7

  	
  Uniform Customs and
  Practices

  	
   

  
	
  3.8

  	
  Indemnification;
  Nature of Issuing Bank’s Duties

  	
   

  
	
  3.9

  	
  Responsibility of
  Issuing Bank

  	
   

  
	
  3.10

  	
  Conflict
  with Letter of Credit Documents

  	
   

  
	
  ARTICLE IV

  	
  INTEREST AND FEES

  	
   

  
	
  4.1

  	
  Interest on Loans

  	
   

  
	
  4.2

  	
  Interest After
  Event of Default

  	
   

  

 

i

 

	
  4.3

  	
  Commitment Fee

  	
   

  
	
  4.4

  	
  Lenders’ Fees/Agent’s
  Fees

  	
   

  
	
  4.5

  	
  Letter of Credit Fees

  	
   

  
	
  4.6

  	
  Authorization to
  Charge Account

  	
   

  
	
  4.7

  	
  Indemnification
  in Certain Events

  	
   

  
	
  4.8

  	
  Inability To
  Determine Interest Rate

  	
   

  
	
  4.9

  	
  Illegality

  	
   

  
	
  4.10

  	
  Funding Indemnity

  	
   

  
	
  ARTICLE V

  	
  CONDITIONS
  PRECEDENT

  	
   

  
	
  5.1

  	
  Closing
  Conditions for Closing under Original Credit Agreement

  	
   

  
	
  5.2

  	
  Closing
  Conditions for Closing under this Amended and Restated Credit Agreement

  	
   

  
	
  5.3

  	
  Condition
  to all Loans and Letters of Credit

  	
   

  
	
  ARTICLE
  VI

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
  6.1

  	
  Organization and
  Qualification

  	
   

  
	
  6.2

  	
  Solvency

  	
   

  
	
  6.3

  	
  Liens; Inventory

  	
   

  
	
  6.4

  	
  No Conflict

  	
   

  
	
  6.5

  	
  Enforceability

  	
   

  
	
  6.6

  	
  Financial
  Data; Material Adverse Change

  	
   

  
	
  6.7

  	
  Locations of
  Offices and Records

  	
   

  
	
  6.8

  	
  Fictitious Business
  Names

  	
   

  
	
  6.9

  	
  Subsidiaries

  	
   

  
	
  6.10

  	
  No Judgments or
  Litigation

  	
   

  
	
  6.11

  	
  No Defaults

  	
   

  
	
  6.12

  	
  No Employee Disputes

  	
   

  
	
  6.13

  	
  Compliance with Law

  	
   

  
	
  6.14

  	
  ERISA

  	
   

  
	
  6.15

  	
  Compliance
  with Environmental Laws

  	
   

  
	
  6.16

  	
  Use of Proceeds

  	
   

  

 

ii

 

	
  6.17

  	
  Intellectual Property

  	
   

  
	
  6.18

  	
  Licenses and Permits

  	
   

  
	
  6.19

  	
  Title to Property

  	
   

  
	
  6.20

  	
  Labor Matters

  	
   

  
	
  6.21

  	
  Investment Company, Etc

  	
   

  
	
  6.22

  	
  Margin Security

  	
   

  
	
  6.23

  	
  No Event of Default

  	
   

  
	
  6.24

  	
  Taxes and Tax Returns

  	
   

  
	
  6.25

  	
  No Other Indebtedness

  	
   

  
	
  6.26

  	
  Status of Accounts

  	
   

  
	
  6.27

  	
  Material Contracts

  	
   

  
	
  6.28

  	
  Survival of
  Representations

  	
   

  
	
  6.29

  	
  Affiliate Transactions

  	
   

  
	
  6.30

  	
  Accuracy
  and Completeness of Information

  	
   

  
	
  6.31

  	
  Anti-Terrorism Laws

  	
   

  
	
  6.32

  	
  Deposit
  Accounts and Commodities Accounts

  	
   

  
	
  6.33

  	
  Force Majeure

  	
   

  
	
  ARTICLE VII

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  
	
  7.1

  	
  Financial Information

  	
   

  
	
  7.2

  	
  Mortgaged Real Estate

  	
   

  
	
  7.3

  	
  Corporate Existence

  	
   

  
	
  7.4

  	
  ERISA

  	
   

  
	
  7.5

  	
  Proceedings or
  Adverse Changes

  	
   

  
	
  7.6

  	
  Environmental Matters

  	
   

  
	
  7.7

  	
  Books and Records;
  Inspection

  	
   

  
	
  7.8

  	
  Collateral Records

  	
   

  
	
  7.9

  	
  Security Interests

  	
   

  
	
  7.10

  	
  Insurance; Casualty Loss

  	
   

  
	
  7.11

  	
  Taxes

  	
   

  
	
  7.12

  	
  Compliance With Laws

  	
   

  

 

iii

 

	
  7.13

  	
  Use of Proceeds

  	
   

  
	
  7.14

  	
  Fiscal
  Year; Accounting Policies; Risk Management Policy

  	
   

  
	
  7.15

  	
  Notification of
  Certain Events

  	
   

  
	
  7.16

  	
  Additional Guarantors

  	
   

  
	
  7.17

  	
  Revisions or
  Updates to Schedules

  	
   

  
	
  7.18

  	
  Collection of Accounts

  	
   

  
	
  7.19

  	
  Notice of
  Matters Affecting Accounts

  	
   

  
	
  7.20

  	
  Maintenance of Property

  	
   

  
	
  7.21

  	
  Trademarks

  	
   

  
	
  7.22

  	
  Anti-Terrorism Laws

  	
   

  
	
  ARTICLE VIII

  	
  FINANCIAL
  COVENANTS

  	
   

  
	
  8.1

  	
  Fixed Charge Coverage
  Ratio

  	
   

  
	
  ARTICLE IX

  	
  NEGATIVE COVENANTS

  	
   

  
	
  9.1

  	
  Restrictions on Liens

  	
   

  
	
  9.2

  	
  Restrictions
  on Additional Indebtedness

  	
   

  
	
  9.3

  	
  Restrictions on
  Sale of Assets

  	
   

  
	
  9.4

  	
  No Corporate Changes

  	
   

  
	
  9.5

  	
  No Guarantees

  	
   

  
	
  9.6

  	
  No Restricted Payments

  	
   

  
	
  9.7

  	
  No Investments

  	
   

  
	
  9.8

  	
  No Affiliate
  Transactions

  	
   

  
	
  9.9

  	
  No
  Prohibited Transactions Under ERISA

  	
   

  
	
  9.10

  	
  No
  Additional Bank, Securities or Commodities Accounts

  	
   

  
	
  9.11

  	
  Restrictions on the
  Borrower

  	
   

  
	
  9.12

  	
  Additional Negative
  Pledges

  	
   

  
	
  9.13

  	
  Subordinated Debt

  	
   

  
	
  9.14

  	
  Sale and Leaseback

  	
   

  
	
  9.15

  	
  Limitations

  	
   

  
	
  9.16

  	
  Operating Lease
  Obligations

  	
   

  

 

iv

 

	
  ARTICLE X

  	
  POWERS

  	
   

  
	
  10.1

  	
  Appointment as
  Attorney-in-Fact

  	
   

  
	
  ARTICLE
  XI

  	
  EVENTS
  OF DEFAULT AND REMEDIES

  	
   

  
	
  11.1

  	
  Events of Default

  	
   

  
	
  11.2

  	
  Acceleration

  	
   

  
	
  ARTICLE XII

  	
  TERMINATION

  	
   

  
	
  ARTICLE XIII

  	
  THE AGENT

  	
   

  
	
  13.1

  	
  Appointment of Agent

  	
   

  
	
  13.2

  	
  Nature of Duties of
  Agent

  	
   

  
	
  13.3

  	
  Lack of Reliance on
  Agent

  	
   

  
	
  13.4

  	
  Certain Rights of the
  Agent

  	
   

  
	
  13.5

  	
  Reliance by Agent

  	
   

  
	
  13.6

  	
  Indemnification of Agent

  	
   

  
	
  13.7

  	
  The Agent in
  its Individual Capacity

  	
   

  
	
  13.8

  	
  Holders of Notes

  	
   

  
	
  13.9

  	
  Resignation of Agent

  	
   

  
	
  13.10

  	
  Collateral Matters

  	
   

  
	
  13.11

  	
  Actions with
  Respect to Defaults

  	
   

  
	
  13.12

  	
  Delivery of Information

  	
   

  
	
  13.13

  	
  No
  Reliance on Administrative Agent’s Customer Identification Program

  	
   

  
	
  13.14

  	
  USA Patriot Act

  	
   

  
	
  ARTICLE XIV

  	
  MISCELLANEOUS

  	
   

  
	
  14.1

  	
  Waivers

  	
   

  
	
  14.2

  	
  JURY TRIAL

  	
   

  
	
  14.3

  	
  GOVERNING
  LAW; SUBMISSION TO JURISDICTION; VENUE

  	
   

  
	
  14.4

  	
  Notices

  	
   

  
	
  14.5

  	
  Assignability

  	
   

  
	
  14.6

  	
  Information

  	
   

  
	
  14.7

  	
  Payment of
  Expenses; Indemnification

  	
   

  
	
  14.8

  	
  Entire
  Agreement, Successors and Assigns

  	
   

  

 

v

 

	
  14.9

  	
  Amendments, Etc

  	
   

  
	
  14.10

  	
  Nonliability
  of Agent and Lenders

  	
   

  
	
  14.11

  	
  Independent
  Nature of Lenders’ Rights

  	
   

  
	
  14.12

  	
  Counterparts

  	
   

  
	
  14.13

  	
  Effectiveness

  	
   

  
	
  14.14

  	
  Severability

  	
   

  
	
  14.15

  	
  Headings Descriptive

  	
   

  
	
  14.16

  	
  Maximum Rate

  	
   

  
	
  14.17

  	
  Right of Setoff

  	
   

  
	
  14.18

  	
  Delegation of Authority

  	
   

  
	
  14.19

  	
  Release

  	
   

  

 

vi

 

EXHIBITS AND SCHEDULES

 

	
  EXHIBITS

  
	
   

  
	
  Exhibit
  A

  	
   

  	
  Form
  of Assignment and Acceptance

  	
   

  
	
  Exhibit
  B

  	
   

  	
  Form
  of Amended and Restated Guaranty Agreement

  	
   

  
	
  Exhibit
  C

  	
   

  	
  Form
  of Landlord Agreement

  	
   

  
	
  Exhibit
  D

  	
   

  	
  Form
  of Amended and Restated Pledge Agreement

  	
   

  
	
  Exhibit
  E

  	
   

  	
  Form
  of Amended and Restated Security Agreement

  	
   

  
	
  Exhibit
  F-1

  	
   

  	
  Form
  of Revolving Note

  	
   

  
	
  Exhibit
  F-2

  	
   

  	
  Form
  of Swing Note

  	
   

  
	
  Exhibit
  G

  	
   

  	
  Form
  of Notice of Borrowing and Payment

  	
   

  
	
  Exhibit
  H

  	
   

  	
  Form
  of Deposit Account Control Agreement

  	
   

  
	
  Exhibit
  I

  	
   

  	
  Form
  of Notice of Extension/Conversion

  	
   

  
	
  Exhibit
  J

  	
   

  	
  Form
  of Compliance Certificate

  	
   

  
	
  Exhibit
  K

  	
   

  	
  Form
  of Borrowing Base Certificate

  	
   

  
	
  Exhibit
  L

  	
   

  	
  Form
  of Joinder Agreement

  	
   

  
	
  Exhibit
  M

  	
   

  	
  Form
  of Solvency Certificate

  	
   

  
	
  Exhibit
  N

  	
   

  	
  Form
  of Amended and Restated Contribution Agreement

  	
   

  
	
  Exhibit
  O

  	
   

  	
  Form
  of Notice of Letter of Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1.1A

  	
   

  	
  Lenders and
  Revolving Credit Commitments

  	
   

  
	
  Schedule 1.1B

  	
   

  	
  Liens

  	
   

  
	
  Schedule 1.1C

  	
   

  	
  Indebtedness

  	
   

  
	
  Schedule 1.1D

  	
   

  	
  Investments

  	
   

  
	
  Schedule 3.1

  	
   

  	
  Existing Letters
  of Credit

  	
   

  
	
  Schedule 6.1

  	
   

  	
  Jurisdictions of
  Organization

  	
   

  
	
  Schedule 6.7

  	
   

  	
  Location of
  Offices and Records

  	
   

  
	
  Schedule 6.8

  	
   

  	
  Fictitious
  Business Names

  	
   

  
	
  Schedule 6.9

  	
   

  	
  Subsidiaries

  	
   

  
	
  Schedule 6.10

  	
   

  	
  Litigation

  	
   

  
	
  Schedule 6.14

  	
   

  	
  ERISA

  	
   

  
	
  Schedule 6.15

  	
   

  	
  Environmental
  Disclosures

  	
   

  
	
  Schedule 6.17

  	
   

  	
  Intellectual
  Property

  	
   

  
	
  Schedule 6.19

  	
   

  	
  Real Estate

  	
   

  
	
  Schedule 6.27

  	
   

  	
  Material
  Contracts

  	
   

  
	
  Schedule 6.29

  	
   

  	
  Affiliate
  Transactions

  	
   

  
	
  Schedule 6.32

  	
   

  	
  Bank Accounts
  and Commodities Accounts

  	
   

  
	
  Schedule 7.2

  	
   

  	
  Initially
  Selected Real Estate

  	
   

  
	
  Schedule 14.4

  	
   

  	
  Addresses for
  Notices

  	
   

  

 

vii

 

AMENDED AND
RESTATED SENIOR SECURED WORKING CAPITAL CREDIT FACILITY

 

THIS
AMENDED AND RESTATED SENIOR SECURED WORKING CAPITAL CREDIT FACILITY
is entered into as of May 27, 2005, among TransMontaigne Inc., a Delaware
corporation (the “Borrower”), each of the financial institutions
identified as Lenders on the signature pages hereto (together with each of
their successors and assigns, referred to individually as a “Lender”
and, collectively, as the “Lenders”), JPMorgan Chase Bank, N.A. and UBS
AG, Stamford Branch, as Syndication Agents, Société Générale, New York Branch
and Wells Fargo Foothill, LLC, as the Documentation Agents, and Wachovia Bank,
National Association (“Wachovia”), acting in the manner and to the
extent described in Article XIII (in such capacity, the “Agent”).  This Agreement amends, restates and
supercedes the Original Credit Agreement in its entirety.  The
Commitments under the Original Credit Agreement hereby are terminated and
replaced by the Commitments hereunder. 
The security interests and Liens created and granted by the Security
Documents shall continue in full force and effect without interruption, and
this Agreement shall not constitute a novation of the Original Credit
Agreement.

 

W I
T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant
to the Original Credit Agreement, the Borrower obtained a revolving credit
facility for refinancing of indebtedness, to finance the ongoing capital
expenditures and working capital, letter of credit and general corporate needs
of the Borrower;

 

WHEREAS, certain
events have occurred, including without limitation, the creation of the MLP
Entities and the transfer of certain assets to them, and the IPO, which has
caused the Borrower to request the changes to the Original Credit Agreement
contained herein; and

 

WHEREAS, upon the
terms and subject to the conditions set forth herein, the Lenders are willing
to enter into this Agreement amending and restating the Original Credit
Agreement, making such changes, and continue to make loans and advances to and
to cause the issuance of Letters of Credit for the account of the Borrower
pursuant to the terms of this Agreement;

 

NOW, THEREFORE,
the Borrower, the Lenders and the Agent hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1                               General Definitions.

 

As used herein,
the following terms shall have the meanings herein specified:

 

“Acceptance
Date” means, as to any particular Assignment and Acceptance, the date
specified as the effective date in such Assignment and Acceptance.

 

 

“Accepted Real
Estate” means any Initially Selected Real Estate and any Additionally
Selected Real Estate as to which the Agent is satisfied in its reasonable
discretion with all of the Real Property Documentation and the information
contained therein.

 

“Accounts”
means all of each Credit Party’s “accounts” as such term is defined in the UCC,
and, in any event, includes, without limitation, (a) all accounts receivable
(whether or not specifically listed on schedules furnished to the Agent), and
all other rights to payment for property sold, leased, licensed, assigned or
otherwise disposed of, for a secondary obligation incurred or to be incurred,
for energy provided or to be provided, for the use or hire of a vessel under a
charter or other contract, arising out of the use of a credit card or charge
card, or for services rendered or to be rendered or in connection with any
other transaction (whether or not yet earned by performance), (b) all rights
in, to, and under all purchase orders or receipts for goods or services, (c)
all rights to any goods represented by any of the foregoing, including, without
limitation, all rights of rescission, replevin, reclamation, and stoppage in
transit and rights to returned, reclaimed, or repossessed goods, (d) all
reserves and credit balances held by each Credit Party with respect to any such
accounts receivable or account debtors, (e) all books, records, computer tapes,
programs and ledger books arising therefrom or relating thereto, and (f) all
guarantees and collateral security of any kind, given by any account debtor or
any other Person with respect to any of the foregoing, all whether now owned or
existing or hereafter acquired or arising, by or in favor of, any Credit Party.

 

“Acquisition”
means the purchase of (i) the capital stock of an entity, (ii) the assets of
such entity through merger or consolidation with such entity or (iii) the
plant, property and equipment of such entity comprising a sub-division, market
segment or subsidiary, or a significant portion thereof, together with the
related current assets and intangible assets of such entity; provided,
that to the extent such assets consist of Accounts, Inventory or other assets
of the type that normally would be included in the calculation of the Borrowing
Base, they shall not be so included until the Agent has completed and is
reasonably satisfied with the results of a field examination as to such assets.

 

“Additionally
Selected Real Estate” means any portion of the Real Estate that is not
described on Schedule 7.2, but is selected subsequently by the Agent
pursuant to Section 7.2, comprising terminals and related real estate
assets having Net Orderly Liquidation Value of not less than the excess of
Minimum Real Estate Liquidation Value over the Net Orderly Liquidation Value of
the Initially Selected Real Estate.

 

“Adjusted LIBOR
Index Rate” means, for any day, a rate per annum equal to the quotient
obtained (rounded upwards, if necessary, to the next higher 1/100th of 1%) by
dividing (i) the rate for 30-day Dollar deposits as reported on Telerate page
3750 as of 11:00 a.m., London time, on the first day of the month in which such
day occurs, or if such day is not a London business day, then the immediately
preceding London business day (or if not so reported, then as determined by the
Agent from another recognized source or interbank quotation), by (ii) 1 minus
the Eurodollar Reserve Percentage.

 

“Affiliate”
means, with respect to any Person, any entity which directly or indirectly
controls, is controlled by, or is under common control with, such Person.  For purposes of this definition, “control”
means the possession, directly or indirectly, of the power to (i) vote  thirty-five percent (35%) or more of the
securities having ordinary voting power for the election of

 

2

 

directors of such Person, or (ii) direct or cause the direction of
management and policies of a business, whether through the ownership of voting
securities, by contract or otherwise and either alone or in conjunction with
others or any group.

 

“Agent”
means Wachovia as provided in the preamble to this Credit Agreement or any
successor to Wachovia.

 

“Agent’s Fees”
means the fees payable by the Borrower to the Agent as described in the Fee
Letter.

 

“Aggregate
Revolving Loan Amount Outstanding” means at any time the sum of the
aggregate principal amount outstanding under the Revolving Loans.

 

“Aggregate
Swing Loan Amount Outstanding” means at any time the sum of the aggregate
principal amount outstanding of the Swing Loans.

 

“Anti-Terrorism
Law” means the USA Patriot Act as such law may be amended from time to
time.

 

“Applicable
Percentage” means, as to each Loan, the percentage per annum for such Loan
determined from the following table and corresponding to the Average Excess
Borrowing Base Availability as determined by reference to Borrowing Base
Certificates and updates thereof as set forth below:

 

	
   

  	
   

  	
  Average Excess

  Borrowing Base

  Availability

  	
   

  	
  Applicable Margin

  for Base Rate Loans

  	
   

  	
  Applicable Margin for

  Eurodollar Loans and

  LIBOR Index Loans

  	
   

  	
  Commitment

  Fee

  
	
  Level I

  	
   

  	
  >70%

  	
   

  	
  0.00%

  	
   

  	
  1.50%

  	
   

  	
  0.50%

  
	
  Level II

  	
   

  	
  < 70% and >
  45%

  	
   

  	
  0.25%

  	
   

  	
  1.75%

  	
   

  	
  0.50%

  
	
  Level III

  	
   

  	
  < 45% and >
  20%

  	
   

  	
  0.50%

  	
   

  	
  2.00%

  	
   

  	
  0.375%

  
	
  Level IV

  	
   

  	
  < 20%

  	
   

  	
  0.75%

  	
   

  	
  2.25%

  	
   

  	
  0.25%

  

 

The Applicable
Percentages shall be determined and adjusted monthly as of the first day of the
month, based on the Borrowing Base Certificate or Borrowing Base Certificates,
as applicable, and updates thereof, delivered pursuant to Section 7.1(e)
for the previous month, and the Level shall be determined by the then current
Average Excess Borrowing Base Availability, and (b) if the Borrower fails to
provide any Borrowing Base Certificate or update for any month as required by
and within the time limits set forth in Section 7.1(e), the Applicable
Percentages from the applicable date of such failure shall be based on Level IV
until the next Business Day after a Borrowing Base Certificate is provided,
whereupon the Level shall be determined by the then current Average Excess
Borrowing Base Availability.  Except as
set forth above, each Applicable Percentage shall be effective as of the first
day of each month.

 

3

 

“Approved
Appraisal” means, for each parcel or tract of the Initially Selected Real
Estate, any Additionally Selected Real Estate, or any Mortgaged Real Estate
that is substituted pursuant to Section 7.2, an appraisal report
prepared by an appraiser reasonably satisfactory to the Agent and the Borrower
and engaged by and on behalf of the Agent and the Lenders, and using appraisal
assumptions and methodology customary in the industry and reasonably
satisfactory to the Agent,  showing the
Net Orderly Liquidation Value of such property.

 

“Approved
Assignee” means any Lender, an Affiliate of a Lender or an Approved Fund.

 

“Approved Banks”
has the meaning given such term in the definition of “Cash Equivalents” herein.

 

“Approved Fund”
means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

“Assignment and
Acceptance” means an assignment and acceptance entered into by an assigning
Lender and an assignee Lender, accepted by the Agent, in accordance with Section
14.5(f), substantially in the form of Exhibit A.

 

“Average Excess
Availability” means the average daily amount of Excess Availability for the
month just ended prior to the date of the most recent Compliance Certificate.

 

“Average Excess
Borrowing Base Availability” means the average daily amount of Excess
Borrowing Base Availability for the month just ended, as determined by
reference to the Borrowing Base Certificates and updates thereof delivered
pursuant to Section 7.1(e) for the previous month.

 

“Bankruptcy
Code” means Title 11 of the United States Code, as amended from time to
time, and any successor statute thereto.

 

“Base Rate”
means, for any day, the rate per annum (rounded upwards, if necessary, to the
nearest whole multiple of 1/100 of 1%) equal to the greater of (a) the Federal
Funds Rate in effect on such day plus 1/2 of 1% or (b) the Prime Rate in
effect on such day.  If for any reason
the Agent shall have determined (which determination shall be conclusive absent
manifest error) that it is unable after due inquiry to ascertain the Federal
Funds Rate for any reason, including the inability or failure of the Agent to
obtain sufficient quotations in accordance with the terms hereof, the Base Rate
shall be determined without regard to clause (a) of the first sentence of this
definition until the circumstances giving rise to such inability no longer
exist.  Any change in the Base Rate due
to a change in the Prime Rate or the Federal Funds Rate shall be effective on
the effective date of such change in the Prime Rate or the Federal Funds Rate,
respectively.

 

“Base Rate Loan”
means any Loan bearing interest at a rate determined by reference to the Base
Rate.

 

“Benefit Plan”
means a defined benefit plan as defined in Section 3(35) of ERISA (other
than a Multiemployer Plan) in respect of which any Credit Party or any of its
Restricted  Subsidiaries or the General
Partner or any of the ERISA Affiliates is, or within the immediately preceding
six (6) years was, an “employer” as defined in Section 3(5) of ERISA.

 

4

 

“Blocked Person”
has the meaning given such term in Section 6.31.

 

“Borrower”
has the meaning given to such terms in the preamble of this Credit Agreement.

 

“Borrowing Base”
means the following amount (the “Borrowing  Base”) calculated as
of the date of determination as follows:

 

(a)                                  up
to the lesser of (1) $5,000,000 and (2) one hundred percent (100%) of balances
in each deposit account of any Credit Party which is subject to a Deposit
Account Control Agreement in favor of the Agent, plus;

 

(b)                                 an
amount equal to ninety percent (90%) of the aggregate dollar amount of all
Eligible Accounts Receivable that are High Quality Oil Company Receivables; plus

 

(c)                                  an
amount equal to eighty-five percent (85%) of the aggregate dollar amount of all
other Eligible Accounts Receivable plus

 

(d)                                 an
amount equal to seventy percent (70%) of the aggregate dollar amount of all
Eligible Petroleum Inventory consisting of tank bottoms and line fill, valued
at Market Value; plus

 

(e)                                  an
amount equal to eighty percent (80%) of the aggregate dollar amount of all
Eligible Petroleum Inventory comprised of Titled In-Transit Inventory, valued
at Market Value, plus

 

(f)                                    an
amount equal to one hundred percent (100%) of the aggregate face amount of the
related Letters of Credit backing Eligible Petroleum Inventory comprised of
Paid LC Backed Inventory; provided, that the amount available under this clause
(f) shall not at any time exceed $20,000,000; plus

 

(g)                                 an
amount equal to eighty percent (80%) of the aggregate dollar amount of all
Eligible Petroleum Inventory other than tank bottoms and line fill and Titled
In-Transit Inventory, valued at Market Value, plus

 

(h)                                 an
amount equal to eighty percent (80%) of any Eligible Positive Exchange Contract
Balances;  minus

 

(i)                                     a
reserve for un-collateralized state excise tax liabilities that are subject to
a Lien or claim (including a right of subrogation) that has legal priority over
the Lien and claim of the Agent, as determined by the Agent from time to time
in its reasonable discretion, minus

 

(j)                                     a
reserve for payments, rents, storage charges or tariffs due by any Credit party
to third parties holding or controlling Eligible Petroleum Inventory, where the
Agent has not obtained reasonably acceptable landlord waivers, warehousemen,
terminal owner or operator and bailee letters, third party consents, and other
agreements as requested by the Agent, as determined by the Agent from time to
time in its reasonable discretion; minus

 

5

 

(k)                                  in
conjunction with any Mortgaged Real Estate transferred to Partners (or its
designees, including Operating Company or other MLP Entities) in connection
with the IPO or pursuant to the MLP Omnibus Agreement in accordance with and
subject to the provisions of Section 9.3(e) and (f), a reserve in an
amount equal to 50% of any positive difference between: (i) $100,000,000 and
(ii) an amount equal to (x) the Net Orderly Liquidation Value of all remaining
Mortgaged Real Estate, minus (y) any environmental reserves pertaining to the
remaining Mortgaged Real Estate; minus

 

(l)                                     a
reserve in the amount of the Current Derivative Exposure;
minus

 

(m)                               any
other reserves established by the Agent from time to time in its reasonable
discretion.

 

Subject to the relevant
terms and provisions set forth in this Credit Agreement, the Agent at all times
shall be entitled to modify the standards of eligibility, reduce the advance
rates, or (subject to clause (h) of Section 14.9) increase the advance
rates under this Credit Agreement, in each case in its reasonable discretion.

 

“Borrowing Base
Certificate” means a borrowing base certificate substantially in the form
of Exhibit K.

 

“Business Day”
means any day other than a Saturday, a Sunday, a legal holiday or a day on
which banking institutions are authorized or required by law or other
governmental action to close in Charlotte, North Carolina, Denver, Colorado or
New York, New York; provided that in the case of Eurodollar Loans, such
day is also a day on which dealings between banks are carried on in U.S. dollar
deposits in the London interbank market.

 

Capital
Expenditures” means, for any period, for the Borrower and its
consolidated Restricted Subsidiaries, amounts added or required to be added to
the property, plant and equipment or other fixed assets account on the
Consolidated balance sheet of the Borrower and its consolidated Restricted
Subsidiaries, prepared in accordance with GAAP, including expenditures in
respect of (a) the acquisition, construction, improvement or replacement of
land, buildings, machinery, equipment, leaseholds and any other real or
personal property (other than an Acquisition), (b) to the extent not included
in clause (a) above, materials, contract labor and direct labor relating
thereto (excluding amounts properly expensed as repairs and maintenance in
accordance with GAAP) and (c) software development costs to the extent not
expensed.

 

“Capital Lease”
means, as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person as lessee which, in accordance with GAAP, is
or should be accounted for as a capital lease on the balance sheet of that
Person.

 

“Capital Stock”
means (i) in the case of a corporation, capital stock, (ii) in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, (iii) in the
case of a partnership, partnership interests (whether general or limited), (iv)
in the case of a limited liability company, membership interests and (v) any
other equity interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of,
the issuing Person.

 

6

 

“Cash
Concentration Account” means a deposit account established and maintained
by the Borrower, for itself and as agent for the other Credit Parties, over
which the Agent, for itself and for the benefit of the Lenders, has “control”
(as such term is used in Article 9 of the UCC), whether by virtue of such
deposit account’s being maintained at the Agent or, if required by the Agent,
pursuant to the terms of a Deposit Account Control Agreement in form and
substance satisfactory to the Agent in its reasonable discretion.

 

“Cash
Equivalents” means

 

(a)                                  negotiable
certificates of deposit, time deposits (including sweep accounts), demand
deposits and bankers’ acceptances having a maturity of nine months or less and
issued by any United States financial institution having capital and surplus
and undivided profits aggregating at least $100,000,000 and rated at least
Prime-1 by Moody’s or A-1 by S&P or issued by any Lender;

 

(b)                                 corporate
obligations having a maturity of nine months or less and rated at least Prime-1
by Moody’s or A-1 by S&P or issued by any Lender;

 

(c)                                  any
direct obligation of the United States of America or any agency or
instrumentality thereof, or of any state or municipality thereof, (i) which has
a remaining maturity at the time of purchase of not more than one year or which
is subject to a fully collateralized repurchase agreement with any Lender (or any
other financial institution referred to in clause (a) above) exercisable within
one year from the time of purchase and (ii) which, in the case of obligations
of any state or municipality, is rated at least Aa by Moody’s or AA by S&P;
and

 

(d)                                 any
mutual fund or other pooled investment vehicle rated at least Aa by Moody’s or
AA by S&P which invests principally in obligations described above.

 

“Cash
Management Products” means any one or more of the following types of
services or facilities extended to any of the Credit Parties by any Lender or
any Affiliate of a Lender in reliance on such Lender’s agreement to indemnify
such Affiliate:  (a) Automated
Clearing House (ACH) transactions; (b) cash management, including
controlled disbursement and lockbox services; and (c) establishing and
maintaining deposit accounts.

 

“Casualty Loss”
has the meaning given to such term in Section 7.10.

 

“Change of
Control” means the occurrence of any of the following:  (i) any person or group of persons (within
the meaning of Section 13 or 14 of the Securities Exchange Act of
1934, as amended), other than any employee benefit plan or plans (within the
meaning of Section 3(3) of ERISA), shall have acquired beneficial
ownership (within the meaning of Rule 13d-3 promulgated by the Securities and
Exchange Commission under said Act) of 35% or more in voting power of the
outstanding Voting Stock of the Borrower, or (ii) during any period of twelve
(12) consecutive calendar months, individuals who were directors of the
Borrower on the first day of such period shall cease to constitute a majority
of the board of directors of the Borrower other than because of the replacement
as a result of death or disability of one or more such directors.

 

“Closing”
means the satisfaction of each of the conditions set forth in Section 5.2.

 

7

 

“Closing Date”
means the date on which the Closing occurs.

 

“Collateral”
means any and all assets and rights and interests in or to property of the
Credit Parties pledged from time to time as security for the Obligations
pursuant to the Security Documents.

 

“Commitment Fee”
means the fee required to be paid to the Agent for the benefit of the Lenders
each calendar month, in arrears, as partial compensation for extending the
Revolving Credit Committed Amount to the Borrower, and shall be determined by
multiplying (i) the positive difference, if any, between (A) the Revolving
Credit Committed Amount in effect at such time and (B) the average Working
Capital Obligations (including Swing Loans) outstanding during such calendar
month by (ii) the Applicable Percentage then in effect for the number of days
in said calendar month; provided, that, only for the purpose of
calculating the Commitment Fee, Swing Loans shall constitute a usage of
Wachovia’s Revolving Credit Commitment.

 

“Commodities
Account Control Agreement” means an agreement among a Credit Party, a
commodities intermediary, and the Agent, which agreement (a) is substantially
in the form of  the Control
Agreement-Assignment of Hedging Account with Citigroup Global Markets Inc. and
TransMontaigne Product Services Inc. use in connection with the existing Credit
Agreement with UBS AG described in Section 5.1(y) or (b) is in such
other form as is reasonably acceptable to the Agent and its counsel and which
provides for the Agent’s having “control” (as such term is used in Article 9 of
the UCC) over the commodity accounts described therein, in each case as the
same may be amended, restated, supplemented, or otherwise modified from time to
time.

 

“Compliance
Certificate” means a certificate, executed by the chief financial officer,
controller or treasurer of the Borrower, substantially in the form of Exhibit
J.

 

“Consolidated”
or “consolidated”  with reference
to any term defined herein, means that term as applied to the accounts of the
Borrower and all of its consolidated Restricted Subsidiaries, consolidated in
accordance with GAAP.

 

“Consolidated
Adjusted EBITDA” means, for any period, on a consolidated basis for the
Borrower and its consolidated Restricted Subsidiaries, the total of:

 

(a)                                  total
Operating Income,

 

(b)                                 plus, depreciation and amortization,

 

(c)                                  plus, dividend income from and equity in earnings of
petroleum related investments to the extent it has been received in cash during
such period, but excluding from such calculation, (1) from and after the Lion
Oil Company Disposition Transaction, dividend income from Lion Oil and (2)
including in such calculation, as to distributions from Partners, only cash
distributions declared in the current fiscal quarter and to be received in the
current or next fiscal quarter (but accounted for as of the fiscal quarter in
which declared),

 

(d)                                 minus, GAAP Inventory Adjustments — Gross for such period
(but only so long as the Borrower includes GAAP Inventory Adjustments-Gross on
its Form 10-Q or Form 10-K filed with the SEC),

 

8

 

(e)                                  minus, any extraordinary gains from dispositions of assets
included in Operating Income;

 

(f)                                    plus, up to $10,475,000 of net operating losses incurred in
May, 2004 in the Supply Distribution and Marketing segment of the Borrower’s
business; provided that such net operating losses shall be added back
only for purposes of calculation of the financial covenant set forth in Section
8.1, and not for purposes of determining whether the condition pertaining
to the Fixed Charge Coverage Ratio has been satisfied in connection with a
Permitted Acquisition or a Permitted Restricted Payment),

 

(g)                                 plus, to the extent deducted from Operating Income,
non-recurring charges recorded in such period payable in cash in future periods
agreed to by the Agent in its reasonable discretion minus
the amount of any such charges excluded in any previous period and paid in cash
during such period,

 

(h)                                 plus, to the extent deducted from Operating Income, non-cash
impairment charges relating to fixed assets.

 

“Consolidated
Capital Expenditures” means, for any period, for the Borrower and its
consolidated Restricted Subsidiaries, (i) all Maintenance Capital Expenditures
and all (ii) Expansion Capital Expenditures, but for purposes of calculating
Consolidated Fixed Charges, including only Expansion Capital Expenditures in
excess of $10,000,000, computed as of the last day of each of the Borrower’s
fiscal quarters, for such fiscal quarter and the three immediately preceding
fiscal quarters combined.

 

“Consolidated
Cash Income Taxes” means, for any applicable period of computation, the sum
of all income taxes actually paid in cash (net of cash refunds) by the Borrower
and its consolidated Restricted Subsidiaries during such period, determined on
a consolidated basis in accordance with applicable law and GAAP.

 

“Consolidated
Cash Interest Expense” means, for any applicable period of computation, all
cash interest expense, net of cash interest income, of the Borrower and its
consolidated Restricted Subsidiaries during such period, determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated
Fixed Charges” means, for any applicable period of computation, without
duplication, the sum of (a) all Consolidated Cash Interest Expense for such
period plus (b) Consolidated Scheduled Funded Indebtedness Payments made
during such period.

 

“Consolidated
Funded Indebtedness” means, as of any date of determination, all Funded
Indebtedness of the Borrower and its consolidated Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Restricted Subsidiaries” or “consolidated Restricted Subsidiaries”
means the Borrower and the Restricted Subsidiaries on a consolidated basis, in
accordance with GAAP.

 

“Consolidated
Scheduled Funded Indebtedness Payments” means, for any applicable period of
calculation, the sum of all scheduled payments of principal on Consolidated
Funded Indebtedness

 

9

 

for the applicable period ending on such date (including the principal
component of payments due on Capital Leases or under any synthetic lease, tax
retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product, other than operating leases that do not constitute any of
the foregoing, during the applicable period ending on such date), determined on
a consolidated basis in accordance with GAAP; it being understood that
Consolidated Scheduled Funded Indebtedness Payments shall not include (i)
voluntary prepayments or the mandatory prepayments required pursuant to Section
2.2, (ii) repayments of the Senior Subordinated Notes that are permitted
under Section 9.13, (iii) repayments of margin loans made by commodities
brokers or (iv) cash redemptions of preferred stock (a) in existence on the
Original Closing Date or (b) issued in satisfaction of dividend obligations
thereon.

 

“Contractual
Obligations” means, with respect to any Person, any term or provision of
any securities issued by such Person, or any indenture, mortgage, deed of
trust, contract, undertaking, document, instrument or other agreement to which
such Person is a party or by which it or any of its properties is bound or to
which it or any of its properties is subject.

 

“Contribution
Agreement” means the Contribution Agreement dated as of the Original
Closing Date, as amended and restated on the Closing Date in substantially the
form of Exhibit N that is to be executed by each of the Credit Parties
in existence on the Closing Date and is to be executed by any Person who
becomes party hereto or to the Guaranty Agreement pursuant to a joinder
agreement in form and substance reasonably satisfactory to the Agent,
including, without limitation, and any Restricted Subsidiaries of the Borrower
which may become Guarantors pursuant to Section 7.16.

 

“Credit
Agreement” means this Amended and Restated Credit Agreement, dated as of
the date hereof, as the same may be amended, restated, supplemented, or
otherwise modified from time to time.

 

“Credit and
Collateral Termination Events” has the meaning set forth in paragraph (b)
of Article XII.

 

“Credit
Documents” means, collectively, this Credit Agreement, any Revolving Notes,
the Letter of Credit Documents, the Guaranty Agreement, the Contribution
Agreement, the Security Documents and all other documents, agreements,
instruments, opinions and certificates executed and delivered in connection
herewith or therewith, excluding Lender Hedging Agreements, as the same may be
amended, restated, supplemented, or otherwise modified from time to time.

 

“Credit Parties”
means the Borrower, the Guarantors and any affiliate of the Borrower or a
Guarantor or any of their respective Restricted Subsidiaries which has pledged
Collateral or executed or joined in the Guaranty Agreement or otherwise
furnished a guaranty to secure or guarantee the Obligations.

 

“Current
Derivative Exposure” means, as of any date of determination, 100% of the aggregate
mark-to-market exposure, then owing by any Credit Party under Lender Hedging
Agreements, determined by the Lender that is counterparty to each Lender
Hedging Agreement, based on termination value after netting, using a mutually
satisfactory method, and furnished to the Agent on a monthly basis (or more
frequently, in the reasonable discretion of the Agent).

 

10

 

“Default”
means an event, condition or default which, with the giving of notice, the
passage of time or both would become an Event of Default.

 

“Default Rate”
means a rate equal to the Base Rate, plus the highest Applicable
Percentage for Base Rate Loans, plus two percent (2%).

 

“Defaulting
Lender” has the meaning given to such term in Section 2.1(d)(ii).

 

“Deposit
Account Control Agreement” means an agreement among a Credit Party, a
Lockbox Bank or other depositary institution, and the Agent, which agreement
(a) is substantially in the form of Exhibit H or (b) is in such other
form as is reasonably acceptable to the Agent and its counsel and which
provides for the Agent’s having “control” (as such term is used in Article 9 of
the UCC) over the deposit accounts described therein, in each case as the same
may be amended, restated, supplemented, or otherwise modified from time to
time.

 

“Dispute”
means any judicial proceeding, any dispute, claim or controversy arising out
of, connected with or relating to this Credit Agreement or any other Credit
Document.

 

“DOL” means
the U.S. Department of Labor and any successor department or agency.

 

“Dollars”
and “$” means dollars in lawful currency of the United States of
America.

 

“Domestic
Restricted Subsidiaries” means, with respect to any Person, any Restricted
Subsidiary of such Person which is incorporated or organized under the laws of
any state of the United States or the District of Columbia.

 

“Eligible
Accounts Receivable” means the Accounts of each of the Credit Parties; provided,
however, that, unless otherwise approved in writing by the Agent in its
reasonable discretion, an Account will not constitute an Eligible Account
Receivable if:

 

(a)                                  such
Account arises out of a sale or lease made by any Credit Party to an Affiliate
or employee;

 

(b)                                 an
Account the invoice for which provides that payment is due in more than thirty
(30) days from the date of such invoice, and any Account that is unpaid more
than sixty (60) days after the due date thereof;

 

(c)                                  any
Account is from the same account debtor (or any affiliate thereof) and fifty
percent (50%) or more, in face amount, of all Accounts from such account debtor
(or any affiliate thereof) are ineligible under clause (b) above;

 

(d)                                 the
amount of the Account, when aggregated with all other Accounts of such account
debtor, exceeds twenty percent (20%) in face value of all Accounts of the
Credit Parties then outstanding, to the extent of such excess;

 

(e)                                  the
account debtor is also a creditor of any Credit Party, but only to the extent
of the amount owed by such Credit Party to the account debtor;

 

11

 

(f)                                    the
account debtor has disputed its liability on, or such account debtor has made
any claim with respect to, such Account or any other Account due from such
account debtor to such Credit Party, which has not been resolved, but only to
the extent of such dispute;

 

(g)                                 the
Account is subject to any right of setoff by the related account debtor, but
only to the extent of the amount of such setoff;

 

(h)                                 the
Account is owing by an account debtor that has commenced a voluntary case under
the Bankruptcy Code or made an assignment for the benefit of creditors; a
decree or order for relief has been entered by a court having jurisdiction in
the premises in respect to such account debtor in an involuntary case under the
Bankruptcy Code; any petition or other application for relief under the
Bankruptcy Code has been filed by or against the account debtor; or such
account debtor is generally not paying its debts as they become due (unless
such debts are the subject of a bona fide dispute), or has suspended business,
ceased to be solvent, or consented to or suffered a receiver, trustee,
liquidator or custodian to be appointed for it or for all or a significant
portion of its assets or affairs;

 

(i)                                     such
Account arises from a sale or lease to an account debtor outside the United
States and Canada, unless the sale is (i) on letter of credit, guaranty or
acceptance terms, or subject to credit insurance, in each case reasonably
acceptable to the Agent in its reasonable discretion, or (ii) otherwise
approved by and reasonably acceptable to the Agent in its reasonable
discretion;

 

(j)                                     such
Account arises from a sale pursuant to any written agreement providing for
repurchase or return, or has not been billed by the Credit Party; provided,
that Accounts that otherwise are eligible shall not be excluded notwithstanding
that they have not been billed by the Credit Party if they arise from the sale
of goods that are shown on the Borrower’s books and records as “released but
not invoiced” for no more than thirty (30) days prior to the date of
calculation of the Borrowing Base, all in accordance with historical practices;

 

(k)                                  the
Agent believes, in its reasonable discretion, that collection of such Account
is insecure or that such Account is reasonably likely not to be paid by reason
of the related account debtor’s financial inability to pay;

 

(l)                                     the
related account debtor is the United States of America or any department,
agency, or instrumentality thereof, unless the applicable Credit Party duly
assigns its rights to payment of such Account to the Agent pursuant to the
Assignment of Claims Act of 1940, as amended from time to time (31 U.S.C. §
3727 et seq.);

 

(m)                               in
the case of Accounts arising from the sale of petroleum products, title to such
petroleum products has not transferred to the purchaser;

 

(n)                                 the
Agent does not have a first priority (subject to
Permitted Liens), perfected security interest in such Account;

 

12

 

(o)                                 such
Account does not comport in all material respects with all warranties contained
in this Agreement and the other Credit Documents; or

 

(p)                                 the
Agent, at any time and in the exercise of its reasonable discretion, determines
such Account to be ineligible.

 

“Eligible
Assignee” means (a) an Approved Assignee or (b) any other Person (i) which
is a commercial bank, finance company, insurance company or other financial
institution or fund or Affiliate thereof and which, in the ordinary course of
business, extends credit of the type contemplated herein; (ii) whose becoming
an assignee would not constitute a prohibited transaction under Section 4975
of the Internal Revenue Code or Section 406 of ERISA; (iii) which is
organized under the laws of the United States of America or any state thereof;
and (iv) which has capital in excess of $500,000,000, provided, however,
that “Eligible Assignee” shall not include the Credit Parties, or any of the
Credit Parties’ Affiliates, financial sponsors or Subsidiaries.

 

“Eligible
Petroleum Inventory” means all of the Inventory of each of the Credit
Parties; provided, however, that, unless otherwise approved in
writing by the Agent in its reasonable discretion, no Inventory shall
constitute Eligible Petroleum Inventory if:

 

(a)                                  such
Inventory is owned in whole or in part by any Person other than a Credit Party;

 

(b)                                 such
Inventory is subject to delivery under a contract with Negative Exchange
Contract Balances;

 

(c)                                  a
Credit Party does not have good, valid, and marketable title to such Inventory;

 

(d)                                 the
Agent does not have a first (except for Permitted Liens) priority perfected
security interest in such Inventory ;

 

(e)                                  except
for Titled In-Transit Inventory and Paid LC Backed Inventory, such Inventory is
not located in the United States or Canada;

 

(f)                                    such
Inventory is obsolete or slow moving and for which a markdown reserve has not
been made;

 

(g)                                 such
Inventory constitutes goods returned or rejected by a Credit Party’s customer
for which a credit has not yet been issued;

 

(h)                                 such
Inventory constitutes goods in transit, unless (i), in transit with a Reputable
Carrier, or (ii) it consists of Titled In-Transit Inventory or Paid LC Backed
Inventory;

 

(i)                                     such
Inventory is held by a Credit Party pursuant to consignment, sale or return,
sale on approval or any similar arrangement;

 

13

 

(j)                                     such
Inventory does not conform in all material respects to the warranties contained
in this Agreement and in the other Credit Documents;

 

(k)                                  the
Agent has, in its reasonable discretion, designated such Inventory to be
ineligible.

 

“Eligible
Positive Exchange Contract Balances” means, at any date, the amount of the
balance, based on current value on a mark to market basis, of any rights of the
Credit Parties to receive petroleum products or money arising from the exchange
of petroleum products with trading partners (other than trading partners
determined by the Agent to be unacceptable in the Agent’s reasonable
discretion), net of any offsets or counterclaims, and subject to a valid, first
priority (subject to Permitted Liens), perfected Lien in favor of the Agent for
the benefit of the Agent and the benefit of the Lenders.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any successor statute.

 

“ERISA
Affiliate” means any (i) corporation which is or was at any time a member
of the same controlled group of corporations (within the meaning of Section
414(b) of the Internal Revenue Code) as the Credit Parties or any of their
Restricted Subsidiaries or the General Partner; (ii) partnership or other trade
or business (whether or not incorporated) at any time under common control
(within the meaning of Section 414(c) of the Internal Revenue Code) with
the Credit Parties or any of their Restricted Subsidiaries or the General
Partner; and (iii) member of the same affiliated service group (within the
meaning of Section 414(m) of the Internal Revenue Code) as the Credit
Parties or any of their Restricted Subsidiaries or the General Partner, any
corporation described in clause (i) above, or any partnership or trade or
business described in clause (ii) above.

 

“Eurodollar
Loan” means a Loan bearing interest based at a rate determined by reference
to the Eurodollar Rate.

 

“Eurodollar Rate”
means, for the Interest Period for each Eurodollar Loan comprising part of the
same borrowing (including conversions, extensions and renewals), a per annum
interest rate determined pursuant to the following formula:

 

	
  Eurodollar Rate =

  	
   

  	
  London Interbank
  Offered Rate

  
	
   

  	
   

  	
  1 - Eurodollar
  Reserve Percentage

  

 

“Eurodollar
Reserve Percentage” means for any day, that percentage (expressed as a
decimal) which is in effect from time to time under Regulation D of the Board
of Governors of the Federal Reserve System (or any successor), as such
regulation may be amended from time to time or any successor regulation, as the
maximum reserve requirement (including, without limitation, any basic,
supplemental, emergency, special, or marginal reserves) applicable with respect
to Eurocurrency liabilities as that term is defined in Regulation D (or against
any other category of liabilities that includes deposits by reference to which
the interest rate of Eurodollar Loans or LIBOR Index Loans is determined),
whether or not any Lender has any Eurocurrency liabilities subject to such
reserve requirement at that time. 
Eurodollar Loans and LIBOR Index Loans shall be deemed to constitute
Eurocurrency liabilities and as such shall be deemed subject

 

14

 

to reserve requirements without benefits of credits for proration,
exceptions or offsets that may be available from time to time to a Lender.  The Eurodollar Rate and the LIBOR Index Rate
shall be adjusted automatically on and as of the effective date of any change
in the Eurodollar Reserve Percentage.

 

“Event(s) of
Default” has the meaning provided for in Article XI.

 

“Excess
Availability” means, at any time, the amount (if any) by which (a) the
lesser of (i) the Revolving Credit Committed Amount and (ii) the Borrowing Base
exceeds (b) the aggregate amount of the Working Capital Obligations, as
determined by reference to the most recent Borrowing Base Certificate.

 

“Excess
Borrowing Base Availability” means the amount, if any, by which the
Borrowing Base exceeds the aggregate amount of the Working Capital Obligations
(regardless of the amount of unused Revolving Credit Commitments), as
determined by reference to the most recent Borrowing Base Certificate.

 

“Excluded Taxes”
has the meaning given to such term in Section 2.6.

 

“Executive
Officer” means the Chief Executive Officer, the Chief Financial Officer,
the Treasurer and the General Counsel of the Borrower.

 

“Existing
Letters of Credit” means those letters of credit listed in Schedule 3.1.

 

“Expansion
Capital Expenditures” means, for any period, all Capital Expenditures other
than Maintenance Capital Expenditures, as set forth in the Borrower’s financial
statements most recently filed with the SEC in accordance with historical
practices or otherwise approved by the Agent prior to any date of
determination, but limited to those of the Borrower and its consolidated
Restricted Subsidiaries.

 

“Federal Funds
Rate” means, for any period, a fluctuating interest rate per annum equal,
for each day during such period, to the weighted average of the rates on
overnight Federal Funds transactions with members of the Federal Reserve System
arranged by Federal Funds brokers, as published for such day (or, if such day
is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average of the quotations for such day on such
transactions received by the Agent from three Federal Funds brokers of
recognized standing selected by it.

 

“Fee Letter”
means the letter agreement, dated April 7, 2005, by and between the Agent and
the Borrower regarding the fees to be paid by the Borrower to the Agent.

 

“Fees”
means, collectively, the Agent’s Fees, the Lenders’ Fees, the Commitment Fee,
the Letter of Credit Fee and the Issuing Bank Fees payable hereunder.

 

“Financials”
has the meaning given to such term in Section 6.6.

 

15

 

“Fixed Charge
Coverage Ratio” means the ratio of:

 

(a)                                  an
amount equal to (w) Consolidated Adjusted EBITDA, minus (x) Consolidated
Capital Expenditures; provided, that for fiscal quarters ended on or
before September 30, 2004, only Maintenance Capital Expenditures shall be
deducted, minus (y) Consolidated Cash Income Taxes and adjusted for any
cash income taxes arising from any gains or losses not included in operating
income, minus (z) dividends and distributions paid in cash (excluding
cash distributions derived from the Lion Oil Company Disposition Transaction)
on common and preferred Capital Stock (but accounted for as of the fiscal
quarter for which declared); to

 

(b)                                 Consolidated
Fixed Charges,

 

in each case computed as of the last day of each of
the Borrower’s fiscal quarters, for such fiscal quarter and the three
immediately preceding fiscal quarters combined.

 

“Flood Hazard
Property” means a property in an area designated by the Federal Emergency
Management Agency as having special flood or mud slide hazards.

 

“Foreign Lender”
means any Lender that is not a United States person, as such term is defined in
Section 7701(a)(30) of the Internal Revenue Code.

 

“Foreign
Restricted Subsidiary” means, with respect to any Person, any Restricted
Subsidiary of such Person which is not a Domestic Restricted Subsidiary.

 

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

 

“Funded
Indebtedness” means, with respect to any Person, without duplication, (a)
all Indebtedness, other than Indebtedness of the types described in clauses
(e), (f), (h) and (l) of the definition of “Indebtedness”), (b) all
Indebtedness of another Person of the type referred to in clause (a)  above secured by (or for which the holder of
such Funded Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on, or payable out of the proceeds of production from,
property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (c) all guaranties of such Person with
respect to Indebtedness of the type referred to in clause (a) above of another
Person and (d) Indebtedness of the type referred to in clause (a) above of any
partnership or unincorporated joint venture in which such Person is legally
obligated, in each case excluding Indebtedness of such Person not required to
be paid within one (1) year after the date of creation, but including current
installments of all Funded Indebtedness.

 

“Funding Bank”
means Wachovia or any other banking or financial institution from whom any of
the Lenders borrow funds or obtain credit.

 

“GAAP”
means generally accepted accounting principles in the United States of America,
as in effect on the date hereof and applied on a consistent basis with the
Financials, provided, however, that for purposes of the financial
terms, representations and warranties and covenants contained herein,
notwithstanding the requirements of GAAP, only the consolidated Restricted
Subsidiaries shall be included, and the Unrestricted Subsidiaries shall be
excluded, with the

 

16

 

ownership of the MLP Entities being recorded on the Borrower’s books in
a manner similar to the cost method of accounting, and except as otherwise
expressly noted, all references to GAAP contained herein shall include such
adjustments.

 

“GAAP Inventory
Adjustments – Gross” means, so long as the Borrower includes GAAP Inventory
Adjustments-Gross on its Form 10-Q or Form 10-K filed with the SEC, the sum of:

 

(a)                                  any
gain recognized on beginning inventories-discretionary volumes held for
immediate sale or exchange, minus,

 

(b)                                 any
gain deferred on ending inventories—discretionary volumes held for immediate
sale or exchange, plus

 

(c)                                  any
increase and minus any decrease in the FIFO cost basis of base operating
inventory volumes, minus,

 

(d)                                 any
lower of cost or market write-downs on base operating inventory volumes, plus

 

(e)                                  any
gains recognized on sales of minimum inventory, minus

 

(f)                                    any
lower of cost or market write-downs on product line fill and tank bottom
volumes;

 

each as calculated and shown on the Borrower’s Form
10-Q or Form 10-K filed with the SEC in accordance with historical practices.

 

“General
Partner” means TransMontaigne GP L.L.C., a Delaware limited liability
company which is wholly owned by TransMontaigne Services Inc. and which, as of
the Closing Date, owns a 2% general partner interest in, and is the sole
general partner of, Partners.

 

“Government
Acts” means any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto government or Governmental Authority

 

“Governmental
Authority” means any federal, state, local or foreign court or governmental
agency, authority, instrumentality or regulatory body.

 

“Guarantor”
means (a) TransMontaigne Product Services Inc., a Delaware corporation,
TransMontaigne Transport Inc., a Delaware corporation, Coastal Fuels Marketing,
Inc., a Florida corporation, Coastal Tug and Barge, Inc., a Florida
corporation, TransMontaigne Transport Inc., a Delaware corporation, and
TransMontaigne Services Inc., a Delaware corporation, and (b) each other Person
who enters into the Guaranty Agreement or who becomes party to the Guaranty
Agreement pursuant to a joinder agreement in form and substance reasonably
satisfactory to the Agent, including, without limitation, and any Restricted
Subsidiaries of the Borrower which may become Guarantors hereunder pursuant to Section
7.16.

 

“Guaranty
Agreement” means the Guaranty Agreement dated as of the Original Closing
Date, as amended and restated on the Closing Date substantially in the form of Exhibit B
that is to be executed by each of the Guarantors in existence on the Closing
Date and is to be executed

 

17

 

(directly or by joinder agreement) by other Guarantors in accordance
with the terms of this Credit Agreement, as the same may be amended, restated,
supplemented, or otherwise modified from time to time.

 

“Hedging
Agreements” means any interest rate protection agreement or other interest
rate protection agreement, foreign currency exchange agreement, commodity
option agreement or other interest or exchange rate or commodity price hedging
agreements.

 

“Highest Lawful
Rate” means, at any given time during which any Obligations shall be
outstanding hereunder, the maximum nonusurious interest rate, if any, that at
any time or from time to time may be contracted for, taken, reserved, charged
or received on the indebtedness under this Credit Agreement, under the laws of
the State of New York (or the law of any other jurisdiction whose laws may be
mandatorily applicable notwithstanding other provisions of this Credit Agreement
and the other Credit Documents), or under applicable federal laws which may
presently or hereafter be in effect and which allow a higher maximum
nonusurious interest rate than under the State of New York or such other
jurisdiction’s law, in any case after taking into account, to the extent
permitted by applicable law, any and all relevant payments or charges under
this Credit Agreement and any other Credit Documents executed in connection
herewith, and any available exemptions, exceptions and exclusions.

 

“High Quality
Oil Company Receivables” means, unless and until the Agent gives written
notice to the Borrower to the contrary all Eligible Accounts Receivable of any
Credit Party, as to which the account debtor (a) is rated at least A- or the
equivalent thereof by S&P or A3 by Moody’s, (b) has a stable outlook or
better from S&P and Moody’s, and (c) has been a customer of a Credit Party
for at least six (6) months.

 

“Indebtedness”
means, with respect to any Person, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, or upon which interest
payments are customarily made, (c) all obligations of such Person under
conditional sale or other title retention agreements relating to property
purchased by such Person (other than customary reservations or retentions of
title under agreements with suppliers entered into in the ordinary course of
business), (d) all obligations of such Person issued or assumed as the deferred
purchase price of property or services purchased by such Person (other than
trade debt incurred in the ordinary course of business and due within six
months of the incurrence thereof) which would appear as liabilities on a balance
sheet of such Person, (e) all Indebtedness of others secured by (or for which
the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on, or payable out of the proceeds of production
from, property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (f) all guaranties of such Person with
respect to Indebtedness of the type referred in this definition of another
Person, (g) the principal portion of all obligations of such Person under
Capital Leases, (h) all obligations of such Person under Hedging Agreements,
(i) the maximum amount of all letters of credit issued or bankers’ acceptances
facilities created for the account of such Person and, without duplication, all
drafts drawn thereunder (to the extent unreimbursed), (j) all preferred Capital
Stock issued by such Person and required by the terms thereof to be redeemed in
cash, or for which mandatory sinking fund payments in cash are due, by a fixed
date prior to the Maturity Date, (k) the principal component of payments due on
Capital Leases or under any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product, other
than operating leases that do not constitute any of the

 

18

 

foregoing, during the applicable period ending on such date, determined
on a consolidated basis in accordance with GAAP, and (l) the Indebtedness of
any partnership or unincorporated joint venture in which such Person is a
general partner or a joint venturer in which such Person is legally obligated
with respect thereto.

 

“Independent
Accountant” means a firm of independent public accountants of nationally
recognized standing selected by the Board of Directors of the Borrower, which
is “independent” as that term is defined in Rule 2-01 of Regulation S-X
promulgated by the Securities and Exchange Commission.

 

“Initially
Selected Real Estate” means the portion of the Real Estate that is described
on Schedule 7.2, comprising the terminals and related real estate assets
preliminarily selected by the Agent pursuant to Section 7.2 and having
projected Net Orderly Liquidation Value of not less than the Minimum Real
Estate Liquidation Value.

 

“Interest
Payment Date” means the date that is five (5) days after receipt by the
Borrower of any invoice with respect to interest due, which invoice shall be
provided (a) as to any Base Rate Loan and any Swing Loan, for each calendar
month to occur while such Loan is outstanding, (b) as to any Eurodollar Loan
having an Interest Period of three months or less, for such Interest Period,
and (c) as to any Eurodollar Loan having an Interest Period longer than three
months, for each three month period during such Interest Period and for the
period from the last full three month period during such Interest Period to the
last day of such Interest Period.

 

“Interest
Period” means, as to Eurodollar Loans, a period of one month, two months,
three months or six months, as selected by the Borrower, commencing on the date
of the borrowing (including continuations and conversions thereof); provided,
however, (i) if any Interest Period would end on a day which is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day (except that where the next succeeding Business Day falls in the
next succeeding calendar month, then on the next preceding Business Day), (ii)
no Interest Period shall extend beyond the Maturity Date and (iii) any Interest
Period with respect to a Eurodollar Loan that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the relevant calendar month at the end of
such Interest Period.

 

“Internal
Revenue” means the Internal Revenue Service and any successor agency.

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and any successor statute thereto and all rules and regulations
promulgated thereunder.

 

“Inventory”
means all of each Credit Party’s inventory as such term is defined in the UCC
but, including without limitation, all Petroleum Inventory.

 

“Investment”
by any Person means (i) the acquisition (whether for cash, property, services,
assumption of Indebtedness, securities or otherwise, but exclusive of the
acquisition of inventory, supplies, equipment and other property or assets used
or consumed in the ordinary course of business of the applicable Credit Party
or any of its Restricted Subsidiaries and

 

19

 

Consolidated Capital Expenditures not otherwise prohibited hereunder)
of assets, shares of Capital Stock, bonds, notes, debentures, partnership
interests, joint ventures or other ownership interests or other securities of
any other Person, (ii) any deposit (other than deposits constituting a
Permitted Lien) with, or advance, loan or other extension of credit (other than
sales of inventory on credit in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms and sales on credit of
the type described in clauses (c) or (d) of Section 9.3) to, any other
Person or (iii) any other capital contribution to or investment in any other
Person, including, without limitation, any obligation incurred for the benefit
of such Person.  In determining the
aggregate amount of Investments outstanding at any particular time, (a) the amount of any Investment represented by
a guaranty shall be taken at not less than the maximum principal amount of the
obligations guaranteed and still outstanding; (b)
there shall be deducted in respect of each such Investment any amount received
as a return of capital (but only by repurchase, redemption, retirement,
repayment, liquidating dividend or liquidating distribution); (c) there shall not be deducted in respect of
any Investment any amounts received as earnings on such Investment, whether as
dividends, interest or otherwise; and (d)
there shall not be deducted from or added to the aggregate amount of
Investments any decrease or increases, as the case may be, in the market value
thereof.

 

“IPO” means
the initial public offering of limited partner interests in Partners.

 

“Issuing Bank”
means Wachovia or any Lender which shall issue a Letter of Credit for the
account of the Borrower; provided, that there shall not be more than two
(2) Lenders other than Wachovia that are Issuing Banks at any time.

 

“Issuing Bank
Fees” has the meaning given to such term in Section 4.5(b).

 

“Landlord
Agreement” means a Landlord Lien Waiver Agreement, substantially in the
form of Exhibit C (or such other form as shall be reasonably acceptable
to the Agent), between the Agent and a Credit Party’s landlord on property that
is subject to a Mortgage.

 

“Leases”
means leases with respect to any leased real property, together with any leases
of real property entered into by a Credit Party or any of its Restricted
Subsidiaries after the date hereof.

 

“Lender”
has the meaning given to such term in the preamble of this Credit Agreement.

 

“Lender Hedging
Agreement” means any Hedging Agreement (other than one pertaining to the
purchase or sale of commodities or commodity options) between the Borrower and
any Person (or affiliate of such Person) that was a Lender or an Affiliate of
Lender at the time it entered into such Hedging Agreement whether or not such
Person has ceased to be a Lender under the Credit Agreement.

 

“Lenders’ Fees”
means the non-refundable fees payable to each of the Lenders as set forth in
each of the Lender’s respective fee letter with the Agent.

 

“Lending Party”
means the Agent and each Lender.

 

20

 

“Letter of Credit Committed Amount” means the
maximum aggregate amount of the Letter of Credit Obligations that is permitted
to be outstanding from time to time pursuant to clause (a) of the proviso
contained in Section 3.1, which is $200,000,000.

 

“Letter of Credit Documents” means, with
respect to any Letter of Credit, such Letter of Credit, any amendments thereto,
any documents delivered in connection therewith, any application therefor, and
any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing
for (i) the rights and obligations of the parties concerned or at risk or (ii) any
collateral security for such obligations.

 

“Letter of Credit Fee” has the meaning given to
such term in Section 4.5(a).

 

“Letter of Credit Obligations” means, at any
time of determination, the sum of (i) the aggregate undrawn amount of all
Letters of Credit outstanding at such time, plus (ii) the aggregate
amount of all drawings under Letters of Credit for which an Issuing Bank has
not at such time been reimbursed, plus (iii) without duplication,
the aggregate amount of all payments made by each Lender to the Issuing Bank
with respect to such Lender’s participation in Letters of Credit as provided in
Section 3.3 for which the Borrower has not at such time reimbursed
the Lenders, whether by way of a Revolving Loan or otherwise.

 

“Letters of Credit” means (a) all Existing
Letters of Credit and (b) all other letters of credit (whether documentary
or stand-by and whether for the purchase of inventory, equipment or otherwise)
issued by an Issuing Bank for the account of the Borrower pursuant to this
Credit Agreement, and all amendments, renewals, extensions or replacements
thereof.

 

“LIBOR Index Loan” means a Swing Loan, or
portion thereof, during any period in which it bears interest at the Adjusted
LIBOR Index Rate.

 

“Lion Oil” means Lion Oil Company, an Arkansas
corporation.

 

“Lion Oil Company Disposition Transaction”
means any transaction entered into by the Borrower and approved by its board of
directors for the sale, transfer, assignment, contribution, distribution or
other disposition of its interests in Lion Oil.

 

“Lien(s)” means any lien, claim, charge,
pledge, security interest, deed of trust, mortgage, or other encumbrance.

 

“Loan” or “Loans” means Revolving Loans
(or a portion of any Revolving Loan), and Swing Loans, or any or all of them,
as the context shall require.

 

“Lockbox” has the meaning given to such term in
Section 2.3(b)(i).

 

“Lockbox Account” has the meaning given to such
term in Section 2.3(b)(i).

 

“Lockbox Bank” has the meaning given to such
term in Section 2.3(b)(i).

 

“London Interbank Offered Rate” means, with
respect to any Eurodollar Loan for the Interest Period applicable thereto, the
rate of interest per annum (rounded upwards, if necessary,

 

21

 

to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or
any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 A.M. (London time) two (2) Business
Days prior to the first day of such Interest Period for a term comparable to
such Interest Period; provided, however, if more than one rate is
specified on Telerate Page 3750, the applicable rate shall be the
arithmetic mean of all such rates.  If,
for any reason, such rate is not available, the term “London Interbank
Offered Rate” means, with respect to any Eurodollar Loan for the Interest
Period applicable thereto, the rate of interest per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as
the London interbank offered rate for deposits in Dollars at approximately
11:00 A.M. (London time) two (2) Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period; provided,
however, if more than one rate is specified on Reuters Screen LIBO Page,
the applicable rate shall be the arithmetic mean of all such rates.

 

“Maintenance Capital Expenditures” means the “Maintenance
Capital Expenditures” (or any successor caption representing substantially
similar capital expenditures) as set forth in the Borrower’s financial
statements most recently filed with the SEC prior to any date of determination
in accordance with historical practices or otherwise approved by the Agent
prior to any date of determination, but limited to those of the Borrower and
its consolidated Restricted Subsidiaries.

 

“Market Value”, with respect to Petroleum
Inventory, means, (i) with respect the Borrower’s discretionary inventory
held for immediate sale or exchange, the sum of (x) the market price for such
Petroleum Inventory, determined by using the published NYMEX price as of the
date of any determination, (y) the applicable location basis differential and
(z) all applicable transportation and other costings, and (ii) with
respect the Borrower’s base, tank bottom and line fill inventory the sum of (x)
the market price for such Petroleum Inventory, determined by using the
published or reported price in Platts Oilgram Price Report, commonly known as
Platts, as of the date of any determination and (y) all applicable
transportation and other costings.  Such
valuation shall be consistent with historical practices in existence on the
Original Closing Date or reflecting changing industry practices. In the event
NYMEX or Platts no longer provides the aforementioned price indices, the
Borrower and the Agent shall replace one or both of the indices with other
third party indices reasonably acceptable to each of the Borrower and the
Agent.

 

“Material Adverse Change” means a material
adverse change in (a) the business, prospects, operations, results of
operations, assets, liabilities or condition (financial or otherwise) of the Credit
Parties, taken as a whole, (b) a material part of the Collateral, (c) the
Credit Parties’ ability to perform their respective obligations under the
Credit Documents, or (d) the rights and remedies of the Lenders hereunder.

 

“Material Adverse Effect” means a material
adverse effect on (a) the business, prospects, operations, results of
operations, assets, liabilities or condition (financial or otherwise) of the
Credit Parties, taken as a whole, (b) a material part of the Collateral, (c) the
Credit Parties’ ability to perform their respective obligations under the
Credit Documents, or (d) the rights and remedies of the Lenders hereunder.

 

“Material Contract” means any written contract
or other arrangement (other than the Credit Documents), to which any Credit
Party or any of its Restricted Subsidiaries is a party as to

 

22

 

which the breach, nonperformance, cancellation or failure to renew by
any party thereto could reasonably be expected to have a Material Adverse
Effect and shall include in any event the Operative Documents (other than the
Credit Documents) to which a Credit Party is a party.

 

“Maturity Date” means, as to the Revolving
Loans, Swing Loans and Letters of Credit (and the related Letter of Credit
Obligations), the fifth (5th) anniversary of the Original Closing
Date.

 

“Minimum Real Estate Liquidation Value” means
$100,000,000, or such lesser amount as the Agent may specify in its reasonable
discretion.

 

“MLP Entities” means Partners, General Partner,
Operating Company, Operating GP and their respective Subsidiaries, whether now
owned or hereafter acquired or created.

 

“MLP Omnibus Agreement” means an agreement, in
form and substance satisfactory to the Agent, dated on or before the Closing
Date, between the Borrower, Partners and certain other parties, pursuant to
which the Borrower will provide (i) management services to the MLP
Entities and (ii) options to Partners (or its designees, including
Operating Company or other MLP Entities) to acquire additional refined product
terminals from the Borrower for fair market value in accordance with the
provisions thereof during the time periods specified, as such agreement is
amended from time to time, provided that no such amendment shall cause
or could reasonably be expected to cause a Material Adverse Effect.

 

“MLP Partnership Agreement” means the First Amended
and Restated Agreement of Limited Partnership establishing Partners, as
amended, restated or supplemented from time to time.

 

“MLP Terminaling Services Agreement” means an
agreement, in form and substance satisfactory to Agent, dated on or before the
Closing Date by and among TransMontaigne Product Services Inc., Coastal Fuels
Marketing, Inc., Partners, and certain other parties thereto, pursuant to
which Operating Company or other MLP Entities will provide to the Borrower
transport, storage and throughput services, as such agreement is amended from
time to time, provided that no such amendment shall cause or could
reasonably be expected to cause a Material Adverse Effect.

 

“Moody’s” means Moody’s Investor Service, Inc.

 

“Mortgage” means, as to each parcel or tract of
the Mortgaged Real Estate (or as to more than one parcel or tract, as the case
may be), the mortgage from the applicable Credit Party on such Mortgaged Real
Estate, in form and substance reasonably satisfactory to the Agent, granting a
Lien thereon, and conveying a security interest in the Mortgage Related
Equipment to secure the Obligations.

 

“Mortgagee Policy” means, for each parcel or
tract of the Mortgaged Real Estate, an ALTA mortgagee title insurance policy
issued by the Title Insurance Company.

 

“Mortgage Related Equipment” means all
equipment of any Credit Party that is located on or used in connection with any
Mortgaged Real Estate.

 

23

 

“Mortgaged Real Estate” means (i) the
Initially Selected Real Estate and any Additionally Selected Real Estate having
an aggregate Net Orderly Liquidation Value of not less than the Minimum Real
Estate Liquidation Value and which has become Accepted Real Estate, and (ii) any
substitute real estate on which a Mortgage is granted pursuant to Section 7.2,
in each case on and as to each of which the Agent shall receive Mortgages and
the Real Property Documentation.

 

“Multiemployer Plan” means a “multiemployer
plan” as defined in Section 4001(a)(3) of ERISA and (i) which
is, or within the immediately preceding six (6) years was, contributed to
by any Credit Parties or any of their Restricted Subsidiaries or the General
Partner or any of the ERISA Affiliates or (ii) with respect to which any
Credit Parties or any of their Restricted Subsidiaries or the General Partner
may incur any liability.

 

“Negative Exchange Contract Balances” means, at any date, the
amount of the balance, of any obligations of the Credit Parties to deliver
petroleum products arising from the exchange of petroleum products with trading
partners.

 

“Net Orderly Liquidation Value” means, as to
each parcel or tract of the Initially Selected Real Estate and any Additionally
Selected Real Estate, the orderly liquidation value thereof, as determined by
and set forth in an Approved Appraisal, less estimated liquidation costs,
discounts and expenses, as determined by the Agent in its reasonable credit
judgment.

 

“Note” or “Notes” means the Revolving
Notes and the Swing Note, or any or all of them, as the context shall require.

 

“Notice of Borrowing and Payment” means a
notice substantially in the form of Exhibit G.

 

“Notice of Extension/Conversion” means a notice
substantially in the form of Exhibit I.

 

“Obligations” means the Loans, any other loans
and advances or extensions of credit made or to be made by any Lender to the
Borrower, or to others for the Borrower’s account, in each case pursuant to the
terms and provisions of this Credit Agreement, together with interest thereon
(including interest which accrues after the commencement of any bankruptcy or
similar case, whether or not such post-petition interest is allowed in such
case) and, including, without limitation, any reimbursement obligation or
indemnity of the Borrower on account of Letters of Credit and all other Letter
of Credit Obligations and all indebtedness, fees, liabilities and obligations
which may at any time be owing by the Borrower to any Lender (or an Affiliate
of a Lender) in each case pursuant to this Credit Agreement or any other Credit
Document, whether now in existence or incurred by the Borrower from time to
time hereafter, whether unsecured or secured by pledge, Lien upon or security
interest in any of the Borrower’s assets or property or the assets or property
of any other Person, whether such indebtedness is absolute or contingent, joint
or several, matured or unmatured, direct or indirect and whether such Borrower
is liable to such Lender (or an Affiliate of a Lender) for such indebtedness as
principal, surety, endorser, guarantor or otherwise.  Obligations shall also include any other
indebtedness owing to any Lender (or an Affiliate of a Lender) by the Borrower
under this Credit Agreement and the other Credit Documents, the Borrower’s
liability to any Lender (or an Affiliate of a Lender) pursuant to this Credit
Agreement as maker or endorser of any promissory note or other instrument for
the payment of money, the Borrower’s liability to any Lender (or an Affiliate
of a Lender) pursuant

 

24

 

to this Credit Agreement or any other Credit Document under any
instrument of guaranty or indemnity, or arising under any guaranty, endorsement
or undertaking which any Lender (or an Affiliate of a Lender) may make or issue
to others for any such Borrower’s account pursuant to this Credit Agreement,
including any accommodation extended with respect to applications for Letters
of Credit, all liabilities and obligations arising under Lender Hedging
Agreements owing from the Borrower to any Lender, or any Affiliate of a Lender
(or any Person that was a Lender or an affiliate of a Lender at the time such
Lender Hedging Agreement was entered into), permitted under Section 9.2,
all liabilities and obligations now or hereafter arising from or in connection
with any Cash Management Products, and all obligations of the Guarantors to any
Lender (or an Affiliate of any Lender) and the Agent arising under or in
connection with the Guaranty Agreement or any other Credit Document, including,
without limitation, the Guaranteed Obligations (as defined in the Guaranty
Agreement).

 

“Operating Income” means operating income as
shown on the Borrower’s financial statements in accordance with historical
practices and in compliance with GAAP.

 

“Operating Company” means TransMontaigne
Operating Company L.P., a Delaware limited partnership of which, as of the
Closing Date, Partners owns a 99.999% limited partner interest and Operating GP
owns a 0.001% general partner interest and is the sole general partner.

 

“Operating GP” means TransMontaigne Operating
GP L.L.C., a Delaware limited liability company which, as of the Closing Date,
owns a 0.001% general partner interest in, and is the sole general partner of,
Operating Company.

 

“Operative Documents” means the Credit
Documents, any Subordination Agreements and any documents or instruments
evidencing Subordinated Debt.

 

“Option Consideration Requirements” means, with
respect to the consideration to be received for any transfer of assets to
Partners pursuant to the MLP Omnibus Agreement, that such consideration must (i) be
for fair market value in accordance with the MLP Omnibus Agreement, and (ii) may
consist of cash or a combination of cash and limited partner units in Partners,
provided, that unless Excess Availability after giving effect to such
transfer will be at least $50,000,000, not less than 75% of such consideration
is paid in cash.

 

“Other Taxes” has the meaning given to such
term in Section 2.6(e).

 

“Original Closing Date” means September 13,
2004, the “Closing Date” under the Original Credit Agreement.

 

“Original Credit Agreement” means that certain
Senior Secured Working Capital Credit Agreement dated as of September 13,
2004, as amended, among the Borrower, each of the Lenders, JPMorgan Chase Bank,
N.A. and UBS AG, Stamford Branch, as Syndication Agents, Société Générale, New
York Branch and Wells Fargo Foothill, LLC, as the Documentation Agents, and  the Agent.

 

“Overadvance” means, as of any date of
determination, the amount, if any, by which the outstanding Working Capital
Obligations exceeds the Borrowing Base.

 

25

 

“PBGC” means the Pension Benefit Guaranty Corporation
and any Person succeeding to the functions thereof.

 

“Paid LC Backed Inventory” means inventory that
has been delivered to any Credit Party and is backed by a Letter of Credit that
has not been drawn upon or cancelled, and where the purchase price of all such
inventory has been paid in full.

 

“Partners” means TransMontaigne Partners L.P.,
a Delaware limited partnership, which is a “master limited partnership” under
the Internal Revenue Code, of which, as of the Closing Date, Coastal Fuels
Marketing, Inc.  and TransMontaigne
Product Services Inc. own limited partner interests, and General Partner owns a
2% general partner interest and is the sole general partner.

 

“Permitted Acquisitions” means any Acquisition
by the Borrower or any of its consolidated Restricted Subsidiaries, so long as
the provisions of Section 7.16 are complied with, if applicable,
and which:

 

(a)                                  is
either an investment in the stock of a non-Guarantor entity or any other
Acquisition, so long as each of the following conditions is satisfied in
connection therewith:

 

(i)                                     the
entity or assets being acquired are for the same or a similar line of business
of those of the Borrower and its consolidated Restricted Subsidiaries, and

 

(ii)                                  the
aggregate amount of all such stock investments and other Acquisitions does not
exceed $20,000,000 in any fiscal year; or

 

(b)                                 is
any other Acquisition not satisfying clause (a) above, so long as each of
the following conditions is satisfied in connection therewith:

 

(i)                                     the
entity or assets being acquired are for the same or a similar line of business
of those of the Borrower and its consolidated Restricted Subsidiaries;

 

(ii)                                  the
Acquisition has not been opposed by the board of directors of the entity that
is selling the shares or assets to be acquired;

 

(iii)                               the
pro forma consolidated cash flow, Excess Availability and Adjusted EBITDA of
the Borrower and its consolidated Restricted Subsidiaries, after giving effect
to the Acquisition (including pro forma adjustments), are reasonably
satisfactory to the Agent in its reasonable discretion;

 

(iv)                              the
aggregate purchase price of all Acquisitions does not exceed an amount equal to
(x) $125,000,000 in any four (4) consecutive fiscal quarter period, plus (y) the amount of any cash proceeds received by the
Credit Parties since the Closing Date from sales of assets to the MLP Entities
permitted by this Credit Agreement, less (z) the
amount of any such cash proceeds previously used since the Closing Date to
retire Indebtedness (other than the Revolving Loans), make Permitted
Acquisitions (including under clause (a) above or this clause (b))

 

26

 

or fund Operating Losses for any fiscal period after
the date of such asset sale, and for this purpose “Operating Losses” shall
equal the numerator of the Fixed Charge Coverage Ratio less the denominator of
the Fixed Charge Coverage Ratio, if negative;

 

(v)                                 after
giving effect to such Acquisition, no Default or Event of Default is in
existence; and

 

(vi)                              on
a pro forma basis after giving effect to such Acquisition, Excess Availability
and the pro forma Fixed Charge Coverage Ratio immediately after the Acquisition
shall be not less than the amounts set forth below, depending on the amount of
the purchase price of such Acquisition:

 

	
  Purchase Price

  	
   

  	
  Minimum Excess

  Availability upon

  closing of

  Acquisition

  	
   

  	
  Pro Forma Fixed

  Charge Coverage

  Ratio

  
	
  <
  $50,000,000

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  N/A

  
	
  <
  $100,000,000 but >$50,000,000

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  1:10 to 1.00

  
	
  >
  $100,000,000

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  1:10 to 1.00

  

 

“Permitted Indebtedness” means:

 

(a)                                  Indebtedness
to the Lenders with respect to the Revolving Loans, the Letters of Credit or
otherwise, pursuant to the Credit Documents;

 

(b)                                 trade
payables incurred in the ordinary course of the Credit Parties’ business;

 

(c)                                  purchase
money Indebtedness (including Capital Leases) hereafter incurred by the Credit
Parties or any of their Restricted Subsidiaries to finance the purchase of
fixed assets provided that (i) the total of all such Indebtedness
for all such Persons taken together shall not exceed an aggregate principal
amount of $10,000,000 at any one time outstanding (including any such
Indebtedness referred to in clause (e) immediately below); (ii) such
Indebtedness when incurred shall not exceed the purchase price of the asset(s)
financed; and (iii) no such Indebtedness shall be refinanced for a
principal amount in excess of the principal balance outstanding thereon plus
any interest, prepayment premium and other related costs at the time of such
refinancing so long as all such costs do not exceed the foregoing $10,000,000
cap;

 

(d)                                 obligations
of the Borrower or any of its Restricted Subsidiaries in respect of Hedging
Agreements entered into in order to manage existing or anticipated interest
rate and exchange rate risks and to manage commodity price risks in accordance
with the Risk Management Policy;

 

(e)                                  Indebtedness
described on Schedule 1.1C and any refinancings of such
Indebtedness; provided that the aggregate principal amount of such
Indebtedness is not

 

27

 

increased, the scheduled
maturity dates of such Indebtedness are not shortened and such refinancing is
on terms and conditions no more restrictive than the terms and conditions of
the Indebtedness being refinanced;

 

(f)                                    margin
loans owed to commodities brokers not in excess of an aggregate amount of
$25,000,000 at any one time;

 

(g)                                 unsecured
Funded Indebtedness of the Credit Parties not exceeding at any time an
aggregate amount of $50,000,000, provided, that the Agent has been
notified promptly of the material terms and conditions thereof (any such amount
shall be deducted from Average Excess Availability for purposes of Section 8.1);
provided, that after giving effect to the issuance of such unsecured
Funded Indebtedness and the application of any of the proceeds thereof on the
issuance date no Default or Event of Default shall exist;

 

(h)                                 Indebtedness
secured by Liens described in clause (d) of the definition of Permitted
Liens;

 

(i)                                     intercompany
loans made by a Credit Party to a Credit Party and intercompany loans made to
the Borrower by Partners not exceeding at any time an aggregate outstanding
principal amount of $5,000,000;

 

(j)                                     Indebtedness
of Foreign Restricted Subsidiaries for financing of the type described in
clause (l) of the definition of Permitted Liens, which Indebtedness may be
unsecured or secured as permitted by such clause (l);

 

(k)                                  Subordinated
Debt; and

 

(l)                                     all
guaranties of such Person with respect to Indebtedness of the type referred in
clauses (a) through (k) (other than (j)) of this definition of another
Person.

 

“Permitted Investments” means:

 

(a)                                  Cash
Equivalents;

 

(b)                                 interest-bearing
demand or time deposits (including certificates of deposit) which are insured
by the Federal Deposit Insurance Corporation (“FDIC”) or a similar federal
insurance program; provided, however, that the Credit Parties
may, in the ordinary course of their respective businesses, maintain in their
disbursement accounts from time to time amounts in excess of then applicable
FDIC or other program insurance limits;

 

(c)                                  Investments
existing on the Closing Date and set forth on Schedule 1.1D;

 

(d)                                 advances
to officers, directors and employees for expenses incurred or anticipated to be
incurred in the ordinary course;

 

(e)                                  Permitted
Acquisitions;

 

28

 

(f)                                    loans
to and Investments in (i) the Credit Parties and (ii) newly created
Domestic Restricted Subsidiaries, and newly created Foreign Restricted
Subsidiaries, provided that (1) the applicable requirements of Section 7.16
are satisfied and (2) the aggregate amount of loans to and Investments in
Foreign Restricted Subsidiaries shall not exceed $7,500,000 at any time;

 

(g)                                 investments
(including debt obligations) received in connection with the bankruptcy or
reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the
ordinary course of business;

 

(h)                                 Hedging
Agreements entered into by the Borrower relating to the Loans hereunder and
other Hedging Agreements entered into in order to manage existing or
anticipated interest rate and exchange rate risks and to manage commodity price
risks in accordance with the Risk Management Policy;

 

(i)                                     Investments
(1) initially made in Partners and the General Partner in connection with
the IPO in accordance with and subject to Section 9.3(e), (2) made
thereafter consisting of limited partner units in Partners received in
consideration of transfers of fixed assets to Partners pursuant to the MLP
Omnibus Agreement and in accordance with and subject to Section 9.3(f),
(3) other Investments of cash in Partners necessary for the General
Partner to maintain its initial 2% general partner interests, so long as no
Default or Event of Default is in existence or would be created after making
the Investment, and (4) intercompany loans made by the Borrower to
Partners not exceeding at any time an aggregate outstanding principal amount of
$5,000,000; and

 

(j)                                     such
other Investments as the Required Lenders may approve in their reasonable
discretion.

 

“Permitted Liens” means

 

(a)                                  Liens
granted to the Agent or the Lenders (or their Affiliates to secure Lender
Hedging Agreements) by the Credit Parties pursuant to any Credit Document;

 

(b)                                 Liens
listed on Schedule 1.1B and, as to the Mortgaged Real Estate, such
Liens of record as are reasonably acceptable to the Agent in its reasonable
discretion;

 

(c)                                  Liens
on fixed assets securing purchase money Indebtedness (including Capital Leases)
to the extent permitted under Section 9.2, provided that any
such Lien attaches to such assets concurrently with or within thirty (30) days
after the acquisition thereof and only to the assets to be acquired;

 

(d)                                 Liens
of warehousemen, mechanics, materialmen, workers, repairmen, fillers,
packagers, processors, common carriers, landlords and other similar Liens
arising by operation of law or otherwise, not waived in connection herewith,
for amounts that are not yet overdue or which are being appropriately contested
in good faith by the relevant Credit Party by proceedings, provided that
in any such case an adequate reserve is being maintained by such Credit Party
to the extent required by GAAP;

 

29

 

(e)                                  attachment
or judgment Liens individually or in the aggregate not in excess of $10,000,000
(exclusive of (i) any amounts that are duly bonded to the satisfaction of
the Agent in its reasonable discretion or (ii) any amount adequately
covered by insurance);

 

(f)                                    Liens
for taxes, assessments or other governmental charges not yet overdue or that
are being contested in good faith by a Credit Party by appropriate proceedings,
provided that in any such contest an adequate reserve in respect there
of is being maintained by such Credit Party to the extent required by GAAP;

 

(g)                                 zoning
ordinances, easements, covenants, rights of way and other restrictions on the
use of real property and other title exceptions that do not interfere in any
material respect with the ordinary course of business or, in the case of owned
real property, the marketability of such real property;

 

(h)                                 deposits
or pledges to secure obligations under workmen’s compensation, social security
or similar laws, or under unemployment insurance;

 

(i)                                     deposits
or pledges to secure bids, tenders, contracts (other than contracts for the
payment of money), leases, regulatory or statutory obligations, surety and
appeal bonds and other obligations of like nature arising in the ordinary
course of business;

 

(j)                                     restrictions
under federal and state securities laws on the transfer of securities;

 

(k)                                  restrictions
under foreign trade regulations on the transfer or licensing of assets of the
Borrower and its Restricted Subsidiaries;

 

(l)                                     liens
on assets of Foreign Restricted Subsidiaries to secure financing made available
to such Foreign Restricted Subsidiary (as to which no Credit Party is liable on
such financing) for working capital and capital expenditures of such Foreign
Restricted Subsidiaries; and

 

(m)                               Liens
on commodities accounts in favor of commodities intermediaries securing margin
loans pertaining to such accounts.

 

“Permitted Restricted Payment” means:

 

(a)                                  (i) in
any fiscal year in which the Lion Oil Company Disposition Transaction occurs,
distributions derived therefrom and other dividends and distributions that do
not exceed an aggregate amount of $5,000,000 paid in cash on common and
preferred stock that do not result in a breach of Section 8.1, if
applicable, and (ii) in any year other than the fiscal year in which
distributions described in (i) are made, dividends and distributions paid
in cash on common and preferred stock that do not exceed an aggregate amount of
$15,000,000 in any fiscal year and that do not result in a breach of Section 8.1,
if applicable, and provided that after giving effect thereto, no other
Default or Event of Default is in existence;

 

30

 

(b)                                 the
payment of dividends and distributions (in addition to the dividends and distributions
described in clause (a) above)  and
redemptions and repurchases (in addition to the redemption described in clauses
(c) and (d) below) on account of any common or preferred Capital
Stock; provided that after giving effect thereto (i) the Fixed Charge
Coverage Ratio (on a pro forma basis) is not less than 1.10 to 1.0, (ii) no
Default or Event of Default is in existence and (iii) Excess Availability
is not less than $75,000,000;

 

(c)                                  the
redemption of preferred Capital Stock for an aggregate amount not exceeding the
sum of $72,900,000 plus the amount necessary to redeem any such preferred
Capital Stock that was issued as “payment-in-kind” in lieu of a cash dividend, provided
that after giving effect thereto (i) no Default or Event of Default is in
existence,  (ii) Excess Availability
is not less than $75,000,000 and (iii) the Fixed Charge Coverage Ratio on
a proforma basis is equal to or greater than 1.10 to 1.00; and

 

(d)                                 the
redemption, repurchase, or repayment of the Senior Subordinated Notes, in whole
or in part provided that after giving effect thereto (i) no Default or
Event of Default is in existence, (ii) Excess Availability is not less
than $100,000,000 and (iii) the Fixed Charge Coverage Ratio on a pro forma
basis is equal to or greater than 1.10 to 1.00.

 

“Person” means any individual, sole
proprietorship, partnership, joint venture, limited liability company, trust,
unincorporated organization, association, corporation, institution, entity,
party or government (including any division, agency or department thereof),
and, as applicable, the successors, heirs and assigns of each.

 

“Petroleum Inventory” means Inventory
consisting of refined petroleum products.

 

“Plan” means any employee benefit plan, program
or arrangement, whether oral or written, maintained or contributed to by any
Credit Party or any of its Restricted Subsidiaries or the General Partner, or
with respect to which such Credit Party or any such Restricted Subsidiary or
the General Partner may incur liability.

 

“Pledge Agreement” means the Pledge Agreement,
dated as of the Original Closing Date, between the Agent and the relevant
Credit Parties, as amended and restated on the Closing Date substantially in
the form of Exhibit D, as the same may be amended, restated,
supplemented, or otherwise modified from time to time.

 

“Pledged Collateral” has the meaning given to
such term in the Pledge Agreement.

 

“Prime Rate” means the rate which Wachovia
announces from time to time as its prime, base or equivalent lending rate, as
in effect from time to time.  The Prime
Rate is a reference rate and does not necessarily represent the lowest or best
rate actually charged to any customer. 
Wachovia (and its affiliates) may make commercial loans or other loans
at rates of interest at, above or below the Prime Rate.

 

“Proprietary Rights” has the meaning given to
such term in Section 6.17.

 

31

 

“Real Estate” means the real property owned or
leased by the relevant Credit Parties described in Schedule 6.19,
as it may be updated from time to time pursuant to Sections 7.9 and 7.17,
together with all Structures thereon.

 

“Real Property Documentation” means, with
respect each parcel or tract of the Mortgaged Real Estate:

 

(a)                                  a
fully executed and notarized Mortgage encumbering the fee interest of the
Credit Parties in such Mortgaged Real Estate;

 

(b)                                 an
owner’s affidavit for such Mortgaged Real Estate, addressed to the title
company, for such Mortgaged Real Estate;

 

(c)                                  as
to leased property, a Landlord Agreement;

 

(d)                                 a
Mortgagee Policy for such Mortgaged Real Estate, in an amount not less than the
amount for such Mortgaged Real Estate designated in Schedule 7.2
with respect to any particular Mortgaged Property (or, as to any Additionally
Selected Real Estate, in any supplemental schedule identifying such
property), assuring the Agent that the Mortgage on such Mortgaged Real Estate
creates a valid and enforceable first priority (subject to Permitted Liens)
mortgage lien such Mortgaged Real Estate, free and clear of all defects and
encumbrances except Permitted Liens, which Mortgagee Policy shall be in form
and substance reasonably satisfactory to the Agent and shall provide for
affirmative insurance and such reinsurance as the Agent may reasonably request,
all of the foregoing in form and substance reasonably satisfactory to the
Agent;

 

(e)                                  an
Approved Appraisal of such Mortgaged Real Estate;

 

(f)                                    evidence in the form of a standard flood hazard
determination certificate as to whether (i) such Mortgaged Real Estate is
a Flood Hazard Property and (ii) the community in which such Flood Hazard
Property is located is participating in the National Flood Insurance Program;

 

(g)                                 if
such Mortgaged Real Estate is a Flood Hazard Property, the relevant Credit
Party’s written acknowledgment of receipt of written notification from the
Agent (i) as to the existence of such Flood Hazard Property and (ii) as
to whether the community in which each such Flood Hazard Property is located is
participating in the National Flood Insurance Program;

 

(h)                                 evidence
reasonably satisfactory to the Agent that such Mortgaged Real Estate, and the
uses of such Mortgaged Real Estate, are in compliance in all material respects
with all applicable zoning laws, regulations and ordinances (the evidence submitted
as to zoning may be in the form of a “zoning letter” from the municipality or
other applicable jurisdiction in which the applicable property is located and
should include the zoning designation made for such Mortgaged Real Estate and
the permitted uses of such Mortgaged Real Estate under such zoning designation;

 

(i)                                     UCC
fixture financing statements for such Mortgaged Real Estate, in form and
substance reasonably satisfactory to the Agent, to be filed in the appropriate

 

32

 

jurisdiction as is
necessary, in the Agent’s reasonable discretion, to perfect the Agent’s lien on
such Mortgaged Real Estate;

 

(j)                                     any
existing environmental inspection report or reports in any Credit Party’s
possession;

 

(k)                                  any
existing surveys of the sites of such Mortgaged Real Estate in any Credit Party’s
possession;

 

“Reportable Event” means any of the events
described in Section 4043 of ERISA and the regulations thereunder.

 

“Reputable Carrier” means any  carrier of Petroleum Inventory that the
Borrower has determined in good faith is a reliable, reputable carrier in the
industry, unless the Agent, in its reasonable credit judgment  has objected to the use of such carrier.

 

“Required Lenders” means, at any time, Lenders
(excluding Defaulting Lenders) holding in the aggregate at least 51% of (i) the
Revolving Credit Commitments or (ii) if the Revolving Credit Commitments
have been terminated, aggregate outstanding principal amount of the Working
Capital Obligations (including participation interests in Letter of Credit
Obligations, but excluding Swing Loans)).

 

“Restricted Payment” means (i) any cash
dividend or other cash distribution, direct or indirect, on account of any
shares of any class of Capital Stock of any Credit Party or any of its
Restricted Subsidiaries, as the case may be, now or hereafter outstanding, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of
Capital Stock of any Credit Party (other than purchase or redemption of
Borrower’s common stock issued to any officer, director or employee in
connection with the payment of withholding taxes on the vesting thereof) or any
of its Restricted Subsidiaries now or hereafter outstanding by such Credit
Party or Restricted Subsidiary, as the case may be, except for any redemption,
retirement, sinking funds or similar payment payable (x) solely to another
Credit Party or (y) solely in such shares of that class of stock or in any
class of stock junior to that class or (iii) any cash payment made to
redeem, purchase, repurchase or retire, or to obtain the surrender of, any
outstanding warrants, options or other rights to acquire any shares of any
class of Capital Stock of any Credit Party (other than any such payment in
respect of withholding taxes due upon the vesting or exercise of any stock
option granted to an officer, director or employee of a Credit Party) or any of
its Restricted Subsidiaries now or hereafter outstanding.

 

“Restricted Subsidiaries” means (i) for
any period prior to the Closing Date, all Subsidiaries of the Borrower, and (ii) for
any period thereafter, all Subsidiaries of the Borrower that are not
Unrestricted Subsidiaries.

 

“Revolving Credit Commitment” means, with
respect to each Lender, the commitment of such Lender to make its portion of
the Revolving Loans in a principal amount up to such Lender’s Revolving Credit
Commitment Percentage of the Revolving Credit Committed Amount.

 

“Revolving Credit Commitment Percentage” means,
for any Lender, the percentage identified as its Revolving Credit Commitment
Percentage on Schedule 1.1A, as such percentage

 

33

 

may be modified in connection with any assignment made
in accordance with the provisions of Section 14.5.

 

“Revolving Credit Committed Amount” means the
aggregate revolving credit line extended by the Lenders to the Borrower for
Revolving Loans and Letters of Credit pursuant to and in accordance with the
terms of this Credit Agreement, in an amount up to $400,000,000, as such
revolving credit line may be reduced from time to time in accordance with Section 2.2(c).

 

“Revolving Loans” means loans and advances made
to the Borrower by all of the Lenders on a revolving basis in accordance with
their respective Revolving Credit Commitments pursuant to Section 2.1(a)(i),
and includes Base Rate Loans and Eurodollar Loans.

 

“Revolving Notes” means promissory notes of the
Borrower to the Lenders that request such notes pursuant to Section 2.1(c) and
that were executed and delivered on the Original Closing Date, substantially in
the form of Exhibit F-1, evidencing the obligation of the Borrower
to repay the Revolving Loans made by such Lenders, as the same may be amended,
restated, supplemented, or otherwise modified from time to time.

 

“Risk Management Policy” means the guidelines
for investment of funds of the Borrower and the Restricted Subsidiaries set
forth in the Risk Management Policy Manual of the Borrower in effect on the
Original Closing Date, as modified or supplemented from time to time with the
approval of the Board of Directors of the Borrower or an authorized executive
committee.

 

“S&P” means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies, Inc.

 

“Securities Account Control Agreement” means an
agreement among a Credit Party, a securities intermediary, and the Agent, which
agreement is reasonably acceptable to the Agent and its counsel and which
provides for the Agent’s having “control” (as such term is used in Article 9
of the UCC) over the securities accounts described therein, in each case as the
same may be amended, restated, supplemented, or otherwise modified from time to
time.

 

“Security Agreement” means the Security
Agreement, dated as of the Original Closing Date, between the Agent and the
Credit Parties (and such other Persons who may from time to time become party
thereto by joinder agreement), as amended and restated on the Closing Date
substantially in the form of Exhibit E, as the same may be amended,
restated, supplemented, or otherwise modified from time to time.

 

“Security Documents” means, collectively, the
Pledge Agreement, the Security Agreement, each Mortgage, each Deposit Account
Control Agreement, and each Commodities Account Control Agreement.

 

“Senior Subordinated Notes” means the
$200,000,000 9 1/8% Senior Subordinated Notes due 2010 issued by the Borrower
pursuant to the Senior Subordinated Notes Indenture.

 

“Senior Subordinated Notes Indenture” means the
Indenture dated as of May 30, 2003, executed by the Borrower and Wells
Fargo Bank Minnesota, National Association, as indenture trustee, as the same
may be amended, restated, supplemented, or otherwise modified from time to
time.

 

34

 

“Settlement Period” means each week, or such
lesser period or periods as the Agent shall reasonably determine.

 

“Solvent” means that the Borrower and its
consolidated Restricted Subsidiaries will not (i) be “insolvent,” within
the meaning of such term as defined in section 101 of the “Bankruptcy Code”,
or section 2 of either the “UFTA” or the “UFCA”, or as defined or used in
any “Other Applicable Law” (as those terms are defined below), or (ii) be
unable to pay its debts generally as such debts become due within the meaning
of section 548 of the Bankruptcy Code, section 4 of the UFTA or section 6
of the UFCA, or (iii) have an unreasonably small capital to engage in any
business or transaction, whether current or contemplated, within the meaning of
section 548 of the Bankruptcy Code, section 4 of the UFTA or section 5
of the UFCA. For purposes of the foregoing, “Bankruptcy Code” means 11 U.S.C. section 101
et seq., “UFTA” means the Uniform Fraudulent Transfer Act, “UFCA” means the
Uniform Fraudulent Conveyance Act, and “Other Applicable Law” means any other
applicable law pertaining to fraudulent transfers or acts voidable by
creditors, in each case as such law may be amended from time to time.

 

“Solvency Certificate” means an officer’s
certificate of the Borrower prepared by the chief financial officer of the
Borrower as to the financial condition, solvency and related matters of the
Credit Parties, on a pro forma basis after giving effect to the IPO,
substantially in the form of Exhibit M.

 

“Structures” means all plants, offices,
manufacturing facilities, warehouses, administration buildings and related
facilities of the Credit Parties located on the Real Estate described on Schedule 6.19,
as it may be updated from time to time pursuant to Sections 7.9 and 7.17,
together with all Structures thereon.

 

“Subordinated Debt” means the Senior
Subordinated Notes and any other unsecured Indebtedness incurred by any Credit
Party, which, in each case, is expressly subordinated and made junior to the
payment and performance in full of the Obligations and contains terms and
conditions reasonably satisfactory to the Agent.

 

“Subordination Agreements” means the agreements
entered into from time to time by and among the Borrower, the Agent, on behalf
of the Lenders, and a third party creditor of any such Borrower providing for
the subordination of such third party creditor’s claims to those of the Lenders
on terms and conditions reasonably satisfactory to the Agent.

 

“Subsidiary” means, as to any Person, (a) any
corporation more than 50% of whose Capital Stock of any class or classes having
by the terms thereof ordinary voting power to elect a majority of the directors
of such corporation (irrespective of whether or not at the time, any class or
classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time owned by such Person directly
or indirectly through Subsidiaries, (b) any partnership, limited liability
company, association, joint venture or other entity in which such Person
directly or indirectly through Subsidiaries has more than a fifty percent (50%)
interest in the total capital, total income and/or total ownership interests of
such entity at any time and (c) any partnership in which such Person is a
general partner.  Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Credit
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

35

 

“Swing Loan” means a Loan made by Wachovia
pursuant to Section 2.1(a)(ii), which must be a Base Rate Loan or a
LIBOR Index Loan.

 

“Swing Note” means the promissory note of the
Borrower in favor of Wachovia that was executed and delivered on the Original
Closing Date, substantially in the form of Exhibit F-2, evidencing
the obligation of the Borrower to repay the Swing Loans, as the same may be
amended, restated, supplemented, or otherwise modified from time to time.

 

“Taxes” means any federal, state, local or foreign
income, sales, use, transfer, payroll, personal, property, occupancy, franchise
or other tax, levy, impost, fee, imposition, assessment or similar charge,
together with any interest or penalties thereon.

 

“Termination Event” means (i) a Reportable
Event with respect to any Benefit Plan or Multiemployer Plan; (ii) the
withdrawal of any Credit Parties or any of their Restricted Subsidiaries or the
General Partner or any of the ERISA Affiliates from a Benefit Plan during a
plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of
ERISA; (iii) the providing of notice of intent to terminate a Benefit Plan
pursuant to Section 4041 of ERISA; (iv) the institution by the
PBGC of proceedings to terminate a Benefit Plan or Multiemployer Plan; (v) any
event or condition (a) which might constitute grounds under Section 4042
of ERISA for the termination of, or the appointment of a trustee to administer,
any Benefit Plan or Multiemployer Plan, or (b) that may result in
termination of a Multiemployer Plan pursuant to Section 4041A of
ERISA; or (vi) the partial or complete withdrawal within the meaning of Sections
4203 and 4205 of ERISA, of any Credit Parties or any of their
Restricted Subsidiaries or the General Partner or any of the ERISA Affiliates
from a Multiemployer Plan.

 

“Titled In-Transit Inventory” means inventory
which is with a Reputable Carrier on the water or in vessels in transit to the
United States of America and to which a Credit Party has title as evidenced by
non-negotiable documents of title, bills of lading or other reasonably
satisfactory documentation.

 

“Title Insurance Company” means, as to each
parcel or tract of the Mortgaged Real Estate, Lawyers Title Insurance
Corporation or any other title insurance company, mutually acceptable to the
Borrower and the Agent, issuing the Mortgagee Policy with respect thereto.

 

“UCC” means the Uniform Commercial Code as in
effect from time to time in the State of New York.

 

“UCP” means The Uniform Customs and Practice
for Documentary Credits, as published as of the date of issue of any Letter of
Credit by the International Chamber of Commerce.

 

“USA Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT) Act of 2001, as in effect from time to time.

 

“Unrestricted Subsidiaries” means Partners and
all other MLP Entities.

 

“Voting Stock” means, with respect to any
Person, Capital Stock issued by such Person the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the

 

36

 

election of directors (or persons performing similar functions) of such
Person, even though the right so to vote has been suspended by the happening of
such a contingency.

 

“Wachovia” means Wachovia Bank, National
Association and its successors and permitted assigns.

 

“Working Capital Obligations” means the sum at
any time of (a) the Aggregate Revolving Loan Amount Outstanding, (b) the
Aggregate Swing Loan Amount Outstanding and (c) the Letter of Credit
Obligations.

 

1.2                               Accounting Terms and
Determinations.

 

Unless otherwise defined or specified herein, all
accounting terms shall be construed herein and all accounting determinations
for purposes of determining compliance with Section 8.1  and otherwise to be made under this Credit
Agreement shall be made in accordance with GAAP (but excluding the consolidated
Unrestricted Subsidiaries, as provided in the definition of GAAP) applied on a
basis consistent in all material respects with the Financials).    If GAAP shall change from the basis used in
preparing the Financials, the certificates required to be delivered pursuant to
Section 7.1 demonstrating compliance with the covenants contained
herein shall include calculations setting forth the adjustments necessary to
demonstrate how the Credit Parties are in compliance with the financial
covenants based upon GAAP as in effect on the Original Closing Date.  If the Credit Parties shall change their
method of inventory accounting, all calculations necessary to determine
compliance with the covenants contained herein shall be made as if such method
of inventory accounting had not been so changed.

 

The Credit Parties shall deliver to the Agent and each
Lender at the same time as the delivery of any annual financial statements
given in accordance with the provisions of Section 7.1, (i) a
description in reasonable detail of any material change in the application of
accounting principles employed in the preparation of such financial statements
from those applied in the most recently preceding annual financial statements
and (ii) a reasonable estimate of the effect on the financial statements
on account of such changes in application.

 

1.3                               Other Definitional Terms.

 

Terms not otherwise defined herein which are defined
in the UCC shall have the meanings given them in the UCC.  The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Credit Agreement shall refer to
the Credit Agreement as a whole and not to any particular provision of this
Credit Agreement, unless otherwise specifically provided.  References in this Credit Agreement to “Articles”,
“Sections”, “Schedules” or “Exhibits” shall be to Articles, Sections, Schedules
or Exhibits of or to this Credit Agreement unless otherwise specifically
provided.  Any of the terms defined in Section 1.1
may, unless the context otherwise requires, be used in the singular or plural
depending on the reference.  “Include”, “includes”
and “including” shall be deemed to be followed by “without limitation” whether
or not they are in fact followed by such words or words of like import.  “Writing”, “written” and comparable terms
refer to printing, typing, computer disk, e-mail and other means of reproducing
words in a visible form.  References to
any agreement or contract are to such agreement or contract as amended,
modified or supplemented from time to time in accordance with the terms hereof
and thereof.  References to any Person
include the successors and

 

37

 

permitted assigns of such Person. 
References “from” or “through” any date mean, unless otherwise
specified, “from and including” or “through and including”, respectively.  References to any times herein shall refer to
Eastern Standard or Daylight Savings time, as applicable.

 

ARTICLE II

 

LOANS

 

2.1                               Revolving Loans and Swing Loans.

 

(a)                                  Commitments.

 

(i)                                     Revolving
Loans.  Subject to the terms and
conditions hereof and in reliance upon the representations and warranties set
forth herein, each of the Lenders severally agrees to lend to the Borrower at
any time or from time to time on or after the Original Closing Date and before
the Maturity Date, such Lender’s Revolving Credit Commitment Percentage of the
Revolving Loans as may be requested or deemed requested by the Borrower.

 

(ii)                                  Swing
Loans.  In addition to the foregoing,
Wachovia shall from time to time, upon the request of the Borrower, if the
applicable conditions precedent in Article V have been satisfied,
make Swing Loans to the Borrower in an aggregate principal amount at any time
outstanding not exceeding $40,000,000; provided that, immediately after
such Swing Loan is made, the conditions set forth in clauses (i) and (ii) of
Section 2.1(b) shall have been satisfied.  Except for calculation of the Commitment Fee
as set forth in the definition thereof, Swing Loans shall not be considered a
utilization of the Revolving Credit Commitment of Wachovia or any other Lender
hereunder.  All Swing Loans shall be made
as Base Rate Loans or as LIBOR Index Loans. 
At any time, upon the request of Wachovia, each Lender other than
Wachovia shall, on the third (3rd) Business Day after such request
is made, purchase a participating interest in Swing Loans in an amount equal to
its ratable share (based upon its respective Revolving Credit Commitment) of
such Swing Loans.  On such third (3rd)
Business Day, each Lender will immediately transfer to Wachovia, in immediately
available funds, the amount of its participation.  Whenever, at any time after Wachovia has
received from any such Lender its participating interest in a Swing Loan, the
Agent receives any payment on account thereof, the Agent will distribute to
such Lender its participating interest in such amount (appropriately adjusted,
in the case of interest payments, to reflect the period of time during which
such Lender’s participating interest was outstanding and funded); provided,
however, that in the event that such payment received by the Agent is
required to be returned, such Lender will return to the Agent any portion
thereof previously distributed by the Agent to it.  Each Lender’s obligation to purchase such
participating interests shall be absolute and unconditional and shall not be
affected by any circumstance, including, without limitation:  (i) any set-off, counterclaim,
recoupment, defense or other right which such Lender or any other Person may
have against Wachovia requesting such purchase or any other Person for any
reason whatsoever; (ii) the occurrence or continuance of a Default or an

 

38

 

Event of Default or the
termination of the Revolving Credit Commitments; (iii) any adverse change
in the condition (financial or otherwise) of the Credit Parties or any other
Person; (iv) any breach of this Agreement by the Borrower or any other
Lender; or (v) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing.

 

(b)                                 Determination
of Borrowing Base.

 

(i)                                     The
Lenders agree, subject to the terms and conditions of this Credit Agreement,
from time to time, to make Revolving Loans to the Borrower on a revolving
basis.  The Working Capital Obligations,
shall not in the aggregate exceed the lesser of (A) the Revolving Credit
Committed Amount then in effect and (B) the Borrowing Base.

 

(ii)                                  No
Lender shall be obligated at any time to make available to the Borrower its
Revolving Credit Commitment Percentage of any requested Revolving Loan if such
amount plus its Revolving Credit Commitment Percentage of all Revolving
Loans and its Revolving Credit Commitment Percentage of all Letter of Credit
Obligations would exceed such Lender’s Revolving Credit Commitment at such
time.  The aggregate balance of Working
Capital Obligations shall not at any time exceed the Revolving Credit Committed
Amount.  No Lender shall be obligated to
make available, nor shall the Agent make available (except pursuant to and in
accordance with Section 2.1(d)(vi)), any Revolving Loans to the
Borrower to the extent such Revolving Loan when added to the then outstanding
Revolving Loans, Swing Loans and Letter of Credit Obligations would cause the
aggregate outstanding Working Capital Obligations to exceed the lesser of (A) the
Revolving Credit Committed Amount then in effect and (B) the Borrowing
Base.  If at any time (1) the amount
of all Working Capital Obligations outstanding exceeds (2) the lesser of (A) the
Revolving Credit Committed Amount then in effect and (B) the Borrowing
Base the Borrower immediately shall make a mandatory prepayment in accordance
with the provisions of Section 2.2(b)(i).

 

(c)                                  Revolving
Notes and Swing Notes.  If so
requested by a Lender (at or at any after the Original Closing Date), the
obligations of the Borrower to repay the Revolving Loans to such Lender and to
pay interest thereon shall be evidenced by a separate Revolving Note to such
Lender, with appropriate insertions.  One
Revolving Note shall be payable to the order of each Lender which so requests a
Revolving Note, and each such Revolving Note shall be in a principal amount
equal to such Lender’s Revolving Credit Commitment and shall represent the
obligations of the Borrower to pay such Lender the amount of such Lender’s
Revolving Credit Commitment or, if less, the aggregate unpaid principal amount
of all Revolving Loans made by such Lender hereunder, plus interest
accrued thereon, as set forth herein. 
Subject to Sections 2.5, 13.8 and 14.5(e), the Borrower irrevocably
authorizes each Lender which has been issued a Revolving Note to make or cause
to be made appropriate notations on its Revolving Note, or on a record
pertaining thereto, reflecting Revolving Loans and repayments thereof.  The outstanding amount of the Revolving Loans
set forth on such Lender’s Revolving Note or record shall be prima  facie
evidence of the principal amount thereof

 

39

 

owing and unpaid to such
Lender, but the failure to make such notation or record, or any error in such
notation or record shall not limit or otherwise affect the obligations of the
Borrower hereunder or under any Revolving Note to make payments of principal of
or interest on any Revolving Note when due. 
Any of the foregoing to the contrary notwithstanding, any lack of a
Lender’s request to be issued a Revolving Note shall not, in any manner,
diminish the Borrower’s obligations to repay the Revolving Loans made by such
Lender, together with all other amounts owing to such Lender by the
Borrower.  The Swing Loans shall be
evidenced by a single Swing Note payable to the order of Wachovia in the
original principal amount of $40,000,000.

 

(d)                                 Borrowings.

 

(i)                                     Each
request for borrowings hereunder shall be made by a Notice of Borrowing and
Payment from the Borrower to the Agent, given not later than (A) 2:00 P.M.
on the Business Day on which the proposed borrowing is requested to be made for
Revolving Loans that will be Base Rate Loans and for Swing Loans and (B) during
normal business hours on the date that is three Business Days prior to the date
of the requested borrowing of Revolving Loans that will be Eurodollar
Loans.  Each request for borrowing made
in a Notice of Borrowing and Payment shall be given by telecopy, setting forth (1) the
requested date of such borrowing, (2) the aggregate amount of such
requested borrowing and whether it is for a Revolving Loan or Swing Loan, (3) whether
such Revolving Loans will be Base Rate Loans or the Eurodollar Rate Loans, and
if appropriate, the applicable Interest Period, (4) whether such Swing
Loans will be Base Rate Loans or LIBOR Index Loans, (5) certification by
the Borrower that it has complied in all respects with Section 5.3,
all of which shall be specified in such manner as is necessary to comply with
all limitations on Revolving Loans and Swing Loans outstanding hereunder
(including, without limitation, availability under the Borrowing Base) and (6) the
account at which such requested funds should be made available.  Each request for borrowing made in a Notice
of Borrowing and Payment shall be irrevocable by and binding on the
Borrower.  The Borrower shall be entitled
to borrow Revolving Loans in a minimum principal amount of $1,000,000 and
integral multiples of $1,000,000 in excess thereof (or the remaining amount of
the Revolving Credit Committed Amount, if less) and shall be entitled to borrow
Base Rate Loans or Eurodollar Loans, or a combination thereof, as the Borrower
may request; provided, that no more than eight (8) Eurodollar Loans
shall be outstanding hereunder at any one time; and provided, further,
that Eurodollar Loans shall be in a minimum principal amount of at least
$5,000,000 and integral multiples of $1,000,000 in excess thereof. Revolving
Loans may be repaid and reborrowed in accordance with the provisions hereof.
Each Swing Loan shall be in a minimum principal amount of at least $1,000,000
and integral multiples of $1,000,000 in excess thereof. Revolving Loans and
Swing Loans may be repaid and reborrowed in accordance with the provisions
hereof.

 

The Agent shall give to
each Lender prompt notice (but in no event later than 3:00 P.M. on the
date of the Agent’s receipt of notice from the Borrower) of each requested
borrowing in a Notice of Borrowing and Payment by telecopy,

 

40

 

telex or cable
(other than any Notice of Borrowing and Payment which will be funded by the
Agent in accordance with subsection (d)(ii) below).  No later than 4:00 P.M. on the date on
which a Revolving Loan borrowing is requested to be made pursuant to the applicable
Notice of Borrowing and Payment, each Lender will make available to the Agent
at the address of the Agent set forth on the signature pages hereto, in
immediately available funds, its Revolving Credit Commitment Percentage of such
borrowing requested to be made (unless such funding is to be made by the Agent
in accordance with subsection (d)(ii) below).  Unless the Agent shall have been notified by
any Lender prior to the date of borrowing that such Lender does not intend to
make available to the Agent its portion of the Revolving Loan borrowing to be
made on such date, the Agent may assume that such Lender will make such amount
available to the Agent as required above and the Agent may, in reliance upon
such assumption, make available the amount of the borrowing to be provided by
such Lender.  Upon fulfillment of the
conditions set forth in Section 5.3 for such borrowing, the Agent
will make such funds available to the Borrower at the account specified by the
Borrower in such Notice of Borrowing and Payment.

 

(ii)                                  If
the amounts of Revolving Loans described in subsection (d)(i) of this
Section 2.1 are not in fact made available to the Agent by a Lender
(such Lender being hereinafter referred to as a “Defaulting Lender”) and
the Agent has made such amount available to the Borrower, the Agent shall be
entitled to recover such corresponding amount on demand from such Defaulting
Lender.  If such Defaulting Lender does
not pay such corresponding amount forthwith upon the Agent’s demand therefor,
the Agent shall promptly notify the Borrower and the Borrower shall immediately
(but in no event later than five Business Days after such demand) pay such
corresponding amount to the Agent.  The
Agent shall also be entitled to recover from such Defaulting Lender and the
Borrower, (A) interest on such corresponding amount in respect of each day
from the date such corresponding amount was made available by the Agent to the
Borrower to the date such corresponding amount is recovered by the Agent, at a
rate per annum equal to either (1) if paid by such Defaulting Lender, the
overnight Federal Funds Rate or (2) if paid by the Borrower, the then
applicable rate of interest, calculated in accordance with Section 4.1,
plus (B) in each case, an amount equal to any reasonable costs
(including reasonable legal expenses) and losses incurred as a result of the
failure of such Defaulting Lender to provide such amount as provided in this
Credit Agreement.  Nothing herein shall
be deemed to relieve any Lender from its obligation to fulfill its commitments
hereunder or to prejudice any rights which the Borrower may have against any
Lender as a result of any default by such Lender hereunder, including, without
limitation, the right of the Borrower to seek reimbursement from any Defaulting
Lender for any amounts paid by the Borrower under clause (B) above on
account of such Defaulting Lender’s default.

 

(iii)                               The
failure of any Lender to make the Revolving Loan to be made by it as part of
any borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Revolving Loan on the date of such borrowing, but no
Lender shall be responsible for the failure of any other Lender to make the
Revolving Loan to be made by such other Lender on the date of any borrowing.

 

41

 

(iv)                              Each
Lender shall be entitled to earn interest at the then applicable rate of
interest, calculated in accordance with Article IV, on outstanding
Revolving Loans which it has funded to the Agent from the date such Lender
funded such Revolving Loan to, but excluding, the date on which such Lender is
repaid with respect to such Revolving Loan.

 

(v)                                 A
request for a borrowing may not be made by telephone, unless no other means are
available at the time of such request.

 

(vi)                              Notwithstanding
anything to the contrary contained elsewhere herein, and whether or not a
Default or Event of Default exists at the time, unless otherwise objected to by
the Required Lenders in writing, the Agent may in its reasonable discretion
require all Lenders to honor requests or deemed requests by the Borrower for
Revolving Loans at a time that an Overadvance exists or which would result in
an Overadvance and each Lender shall be obligated to continue to make its pro
rata share of Revolving Loans, up to a maximum amount outstanding equal to its
Revolving Credit Commitment, so long as such Overadvance is not known by the
Agent to exceed $10,000,000 and so long as such Overadvance is not outstanding
for more than ten (10) Business Days.  No new Overadvance may be made at any time
during which an existing Overadvance is outstanding.

 

2.2                               Optional and Mandatory
Prepayments; Reduction of Revolving Credit Committed Amount.

 

(a)                                  Voluntary
Prepayments.  The Borrower shall have
the right to prepay Loans in whole or in part from time to time, but otherwise
without premium or penalty; provided, however, that (i) Loans
that are Eurodollar Loans may only be prepaid on three (3) Business Days’
prior written notice to the Agent specifying the applicable Loans to be
prepaid; (ii) any prepayment of Loans that are Eurodollar Loans will be
subject to Section 4.10; (iii) each such partial prepayment of
Revolving Loans shall be in a minimum principal amount of $1,000,000 for Base
Rate Loans and $5,000,000 for Eurodollar Loans and (iv) each such partial
prepayment of Swing Loans shall be in a minimum principal amount of
$1,000,000.  Voluntary prepayments shall
be applied to Base Rate Loans, LIBOR Index Loans or to Eurodollar Loans in the
order of Interest Period maturities as directed by the Borrower.

 

(b)                                 Mandatory
Prepayments.

 

(i)                                     Revolving
Credit Committed Amount.  If at any
time, the Working Capital Obligations outstanding shall exceed the lesser of (A) the
Revolving Credit Committed Amount then in effect and (B), except as permitted
by Section 2.1(d)(vi), the Borrowing Base, the Borrower immediately shall
pay to the Agent, for the ratable account of the Lenders, an amount sufficient
to eliminate such excess.

 

(ii)                                  Application
of Mandatory Prepayments.  All amounts
required to be paid pursuant to this Section 2.2(b) shall be
applied to Swing Loans, and then Revolving Loans and (after all Revolving Loans
have been repaid) to a cash

 

42

 

collateral account held
by the Agent in respect of Letter of Credit Obligations.  Within the parameters of the applications set
forth above for Swing Loans and Revolving Loans, prepayments shall be applied
first to Base Rate Loans and then to Eurodollar Loans in direct order of Interest
Period maturities.  All prepayments under
this Section 2.2(b) shall be subject to Section 4.10.

 

(c)                                  Voluntary
Reductions of Revolving Credit Committed Amount.  The Borrower may from time to time
permanently reduce or terminate the Revolving Credit Committed Amount in whole
or in part (in minimum aggregate amounts of $5,000,000 or in integral multiples
of $1,000,000 in excess thereof (or, if less, the full remaining amount of the
then applicable Revolving Credit Committed Amount)) upon three (3) Business
Days’ prior written notice to the Agent; provided, however, no
such termination or reduction shall be made which would cause the aggregate
principal amount of outstanding Revolving Loans plus Letter of Credit
Obligations outstanding to exceed the lesser of (A) the Revolving Credit
Committed Amount and (B) the Borrowing Base, unless, concurrently with
such termination or reduction, the Borrower make a mandatory prepayment in
accordance with the provisions of Section 2.2(b)(i).  The Agent shall promptly notify each affected
Lender of receipt by the Agent of any notice from the Borrower pursuant to this
Section 2.2(c).

 

(d)                                 Maturity
Date.  The Revolving Credit
Commitment of the Lenders, the commitment of Wachovia to make Swing Loans and
the Letter of Credit Commitment of the Issuing Bank shall automatically
terminate on the Maturity Date.

 

(e)                                  General.  The Borrower shall pay to the Agent for the
account of the Lenders in accordance with the terms of Section 4.3,
on the date of each termination or reduction of the Revolving Credit Committed
Amount, the Commitment Fee accrued through the date of such termination
or reduction on the amount of the Revolving Credit Committed Amount so
terminated or reduced.

 

(f)                                    Hedging
Obligations Unaffected.  Any
prepayment made pursuant to this Section 2.2 shall not affect the
Borrower’s obligation to continue to make payments under any Lender Hedging
Agreement, which shall remain in full force and effect notwithstanding such
prepayment, subject to the terms of such Lender
Hedging Agreement.

 

2.3                               Payments and Computations.

 

(a)                                  Payments.  The Borrower shall make each payment
hereunder and under the Notes not later than 2:00 P.M. on the day when
due.  Payments made by the Borrower shall
be in Dollars to the Agent at its address referred to in Section 14.4
in immediately available funds without deduction, withholding, setoff or
counterclaim.  As soon as practicable
after the Agent receives payment from the Borrower, but in no event later than
one Business Day after such payment has been made, subject to Section 2.1(d)(ii),
the Agent will cause to be distributed like funds relating to the payment of
principal, interest, or Fees (other than amounts payable on the Swing Loans or
to the Agent to reimburse the Agent and the Issuing Bank for fees and expenses
payable solely to them pursuant to Article IV) or expenses payable
to the Agent and the Lenders in accordance

 

43

 

with Section 14.7
ratably to the Lenders, and like funds relating to the payment of any other
amounts payable to such Lender.  The
Borrower’s obligations to the Lenders with respect to such payments shall be
discharged by making such payments to the Agent pursuant to this Section 2.3(a) or
if not timely paid or any Event of Default then exists, may be added to the
principal amount of the Revolving Loans outstanding.

 

(b)                                 Lockboxes.

 

(i)                                     The
Borrower and (by execution and delivery of the Guaranty Agreement or of a
joinder thereto and incorporation by reference therein) each Guarantor hereby
agree to comply with the provisions of this Section 2.3(b). Each of
the Credit Parties, individually or through the Borrower, shall establish and
shall maintain one or more lockboxes (each a “Lockbox”) with financial
institutions, including, without limitation, Wachovia and Wells Fargo Bank,
National Association, selected by the Borrower and reasonably acceptable to the
Agent (each a “Lockbox Bank”) and shall instruct all account debtors on
the Accounts of each Credit Party to remit all payments to its respective
Lockboxes.  All amounts received by the
Credit Parties from any account debtor, in addition to all other cash received
from any other source (including but not limited to proceeds from asset sales
and judgments), shall be promptly deposited into an account which is maintained
at a Lockbox Bank and which is subject to a Deposit Account Control Agreement
in favor of the Agent (each such account, a “Lockbox Account”) or into
the Cash Concentration Account.  The
foregoing notwithstanding, unless the Agent otherwise requires, no Deposit
Account Control Agreement shall be required with respect to any Lockbox Account
maintained with the Agent, so long as the Agent has “control” (as such term is
used in Article 9 of the UCC) over such account.

 

(ii)                                  All
receipts held in the Lockboxes shall be remitted daily to the appropriate
Lockbox Account.  After the occurrence
and during the continuance of an Event of Default, or in the event there shall
occur a breach of the covenants contained in clause (i) above or Section 9.10
for so long as any such breach of the covenant contained in clause (i) or Section 9.10
continues and remains uncured, all funds deposited into the Lockbox Accounts on
any Business Day shall be transferred to the Cash Concentration Account.    All amounts received directly by the Credit
Parties from any account debtor, in addition to all other cash received from
any other source (including, without limitation, proceeds from asset sales and
judgments), shall be held in trust by the Credit Parties and promptly deposited
into a Lockbox Account or, if made by wire transfer, directly to a Lockbox
Account.

 

(iii)                               Funds
deposited into the Cash Concentration Account pursuant to clause (ii) above
shall immediately become the property of the Agent and the Credit Parties shall
obtain the agreement by the Lockbox Banks to waive any offset rights against
the funds so deposited, except as permitted by the Deposit Account Control
Agreement pertaining thereto.  The Agent
assumes no responsibility for the Lockbox arrangements, including without
limitation, any claim of accord and satisfaction or release with respect to
deposits accepted by the

 

44

 

Lockbox Banks thereunder
except to the extent that the Agent begins to instruct the Lockbox Bank after
the occurrence and during the continuance of an Event of Default or breach of
the covenants contained in clause (i) above or Section 9.10.

 

(iv)                              The
Credit Parties may close Lockboxes only with the prior written consent (such
consent not to be unreasonably withheld or delayed) of the Agent and subject to
the terms and conditions set forth in any applicable Deposit Account Control
Agreement.  The Credit Parties may open
new Lockboxes and Lockbox Accounts, subject to such Lockbox Account’s being
subject to a Deposit Account Control Agreement as contemplated above.

 

(v)                                 No
Credit Party shall direct any account debtor to submit payment on any Account
to any address or location other than to a Lockbox.  No collections from any Account shall be
deposited into any account other than a Lockbox Account or the Cash
Concentration Account.

 

(c)                                  After
the occurrence and during the continuance of an Event of Default, the Borrower
hereby authorizes each Lender to charge from time to time against the Borrower’s
accounts with such Lender any of the Obligations which are then due and
payable.  Each Lender receiving any
payment as a result of charging any such account shall promptly notify the
Agent thereof and make such arrangements as the Agent shall request to share
the benefit thereof in accordance with Section 2.7.

 

(d)                                 Except
as otherwise provided herein with respect to Eurodollar Loans, any payments
falling due under this Credit Agreement on a day other than a Business Day
shall be due and payable on the next succeeding Business Day and shall accrue
interest at the applicable interest rate provided for in this Credit Agreement
to but excluding such Business Day. 
Except as otherwise provided herein, computation of interest and fees
hereunder shall be made on the basis of actual number of days elapsed over a
year of 360 days.  Interest on Base Rate
Loans bearing interest based on the Prime Rate shall be calculated on the basis
of a year of 365 (or 366, if applicable) days.

 

2.4                               Maintenance of Account.

 

The Agent shall maintain an account on its books in
the name of the Borrower in which the Borrower will be charged with all loans
and advances made by the Lenders to the Borrower or for the Borrower’s account,
including the Revolving Loans, the Swing Loans, the Letter of Credit
Obligations and any other Obligations, including any and all costs, expenses
and attorney’s fees which the Agent may incur, including, without limitation,
in connection with the exercise by or for the Lenders of any of the rights or
powers herein conferred upon the Agent (other than in connection with any
assignments or participations by any Lender) or in the prosecution or defense
of any action or proceeding by or against the Borrower or the Lenders
concerning any matter arising out of, connected with, or relating to this
Credit Agreement or the Accounts, or any Obligations owing to the Lenders by
the Borrower.  The Borrower will be
credited in accordance with Section 2.3(b)(ii) above, with all
amounts received by the Lenders from the Borrower or from others for the
Borrower’s account, including, as above set forth, all amounts received by the
Agent in payment of Accounts.  In no
event shall prior recourse to any Accounts or other Collateral be a
prerequisite to the Agent’s right to demand payment of any

 

45

 

Obligation upon its maturity. 
Further, it is understood that the Agent shall have no obligation
whatsoever to perform in any respect any of the Borrower’s contracts or
obligations relating to the Accounts.

 

2.5                               Statement of Account.

 

Within fifteen (15) days after the end of each month
the Agent shall send the Borrower a statement showing the accounting for the
charges, loans, advances and other transactions occurring between the Lenders
and the Borrower during that month.  The
monthly statements shall be deemed correct and binding upon the Borrower and
shall constitute an account stated between the Borrower and the Lenders unless
the Agent receives a written statement of the Borrower’s exceptions within
forty-five  (45) days after same is
mailed to the Borrower.

 

2.6                               Taxes.

 

(a)                                  All
payments made by the Borrower hereunder or under any Note will be, except as
provided in Section 2.6(b), made free and clear of, and without
deduction or withholding for, any present or future taxes, levies, imposts,
duties, fees, assessments or other charges of whatever nature now or hereafter
imposed by any Governmental Authority or by any political subdivision or taxing
authority thereof or therein with respect to such payments (but excluding any
tax imposed on or measured by the net income or profits of a Lender pursuant to
the laws of the jurisdiction in which it is organized or the jurisdiction in
which the principal office or applicable lending office of such Lender is
located or any subdivision thereof or therein (the “Excluded Taxes”))
and all interest, penalties or similar liabilities with respect thereto (all
such non-excluded taxes, levies, imposts, duties, fees, assessments or other
charges being referred to collectively as “Payment Taxes”).  If any Payment Taxes are so levied or
imposed, the Borrower agrees to pay the full amount of such Payment Taxes, and
such additional amounts as may be necessary so that every payment of all
amounts due under this Credit Agreement or any other Credit Document, after
withholding or deduction for or on account of any Payment Taxes, will not be
less than the amount provided for herein or therein.  The Borrower agrees to indemnify and hold
harmless each Lender, and reimburse such Lender upon its written request, for
the amount of any Payment Taxes so levied or imposed and paid by such Lender.

 

(b)                                 Each
Foreign Lender agrees to deliver to the Borrower and the Agent on or prior to
the Closing Date, or in the case of a Lender that is an assignee or transferee
of an interest under this Credit Agreement pursuant to Section 14.5(c) (unless
the respective Lender was already a Lender hereunder immediately prior to such
assignment or transfer), on the date of such assignment or transfer to such
Foreign Lender, two accurate and complete original signed copies of Internal
Revenue Service Form W-8 BEN, W-8 ECI or W-8 IMY, as applicable (or
successor forms) certifying such Foreign Lender’s entitlement to a complete
exemption from United States withholding tax with respect to payments to be
made under this Credit Agreement and under any Note.  In addition, each Foreign Lender agrees that
it will deliver updated versions of the foregoing, as applicable, whenever the
previous certification has become obsolete or inaccurate in any material
respect, together with such other forms as may be required in order to confirm
or establish the entitlement of such Foreign Lender to a continued exemption
from or

 

46

 

reduction in United
States withholding tax with respect to payments under this Agreement and any
Note.  Notwithstanding anything to the
contrary contained in Section 2.6(a), but subject to the
immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold Payment Taxes
imposed by the United States (or any political subdivision or taxing authority
thereof or therein) from interest, fees or other amounts payable hereunder for
the account of any Foreign Lender to the extent that such Foreign Lender has
not provided to the Borrower U.S. Internal Revenue Service Forms that establish
a complete exemption from such deduction or withholding and (y) the Borrower
shall not be obligated pursuant to Section 2.6(a) to gross-up
payments to be made to a Foreign Lender in respect of Payment Taxes imposed by
the United States if such Foreign Lender has not provided to the Borrower the
Internal Revenue Service Forms required to be provided to the Borrower pursuant
to this Section 2.6(b) or if such forms do not provide for a
complete exemption from withholding tax. 
Notwithstanding anything to the contrary contained in the preceding
sentence or elsewhere in this Section 2.6, the Borrower agrees to
pay additional amounts and to indemnify each Lender in the manner set forth in Section 2.6(a) (without
regard to the identity of the jurisdiction requiring the deduction or
withholding) in respect of any amounts deducted or withheld by it as described
in the immediately preceding sentence as a result of any changes after the
Closing Date in any applicable law, treaty, governmental rule, regulation,
guideline or order, or in the interpretation thereof, relating to the deducting
or withholding of Payment Taxes. 
Notwithstanding anything to the contrary contained in this Section 2.6,
the Borrower shall not be required to pay any Payment Taxes for any period
ending ninety (90) days or more prior to the request for payment of such Other
Taxes.

 

(c)                                  Each
Lender agrees to use reasonable efforts (including reasonable efforts to change
its lending office) to avoid or to minimize any amounts which might otherwise
be payable pursuant to this Section 2.6; provided, however,
that such efforts shall not cause the imposition on such Lender of any
additional costs or legal or regulatory burdens deemed by such Lender in its
reasonable discretion to be material.

 

(d)                                 If
the Borrower pays any additional amount pursuant to this Section 2.6
with respect to a Lender, such Lender shall use reasonable efforts to obtain a
refund of tax or credit against its tax liabilities on account of such payment;
provided that such Lender shall have no obligation to use such
reasonable efforts if either (i) it is in an excess foreign tax credit
position or (ii) it believes in good faith, in its reasonable discretion,
that claiming a refund or credit would cause adverse tax consequences to
it.  In the event that such Lender
receives such a refund or credit, such Lender shall pay to the Borrower an
amount that such Lender reasonably determines is equal to the net tax benefit
obtained by such Lender as a result of such payment by the Borrower.  In the event that no refund or credit is obtained
with respect to the Borrower’s payments to such Lender pursuant to this Section 2.6,
then such Lender shall upon request provide a certification that such Lender
has not received a refund or credit for such payments.  Nothing contained in this Section 2.6
shall require a Lender to disclose or detail the basis of its calculation of
the amount of any tax benefit or any other amount or the basis of its
determination referred to in the proviso to the first sentence of this Section 2.6(a) to
the Borrower or any other party.

 

47

 

(e)                                  In
addition, the Borrower agrees to pay any present or future stamp, documentary,
privilege, intangible or similar Taxes or any other excise or property Taxes,
charges or similar levies that arise at any time or from time to time (other
than Excluded Taxes) (i) from any payment made under any and all Credit
Documents, (ii) from the transfer of the rights of any Lender under any
Credit Documents to any other Lender or Lenders or (iii) from the
execution or delivery by the Borrower of, or from the filing or recording or
maintenance of, or otherwise with respect to, any and all Credit Documents
(hereinafter referred to as “Other Taxes”).

 

(f)                                    The
Borrower will indemnify each Lender and the Agent for the full amount of Payment
Taxes (including, without limitation and without duplication, any Payment Taxes
imposed by any jurisdiction on amounts payable under this Section 2.6),
subject to (i) the exclusion set out in the first sentence of Section 2.6(a),
and (ii) the provisions of Section 2.6(b), and will indemnify
each Lender and the Agent for the full amount of Other Taxes (including,
without limitation and without duplication, any Payment Taxes imposed by any
jurisdiction on such Other Taxes paid by such Lender or the Agent (on its own
behalf or on behalf of any Lender), as the case may be, in respect of payments
made or to be made hereunder, and any liability (including penalties, interest
and expenses) arising solely therefrom or with respect thereto, whether or not
such Payment Taxes or Other Taxes were correctly or legally asserted.  Payment of this indemnification shall be made
within thirty (30) days from the date such Lender or the Agent, as the
case may be, makes written demand therefor.

 

(g)                                 Within
thirty (30) days after the date of any payment of Payment Taxes or Other
Taxes by the Borrower, the  Borrower
shall furnish to the Agent, at its address referred to in Section 14.4,
the original or certified copy of a receipt evidencing payment thereof.

 

(h)                                 Without
prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in this Section 2.6
shall survive the payment in full of all Obligations hereunder and under any
Notes.

 

2.7                               Sharing of Payments.

 

If any Lender shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of setoff or
otherwise) on account of the Loans made by it in excess of its pro  rata
share of such payment as provided in this Credit Agreement or its participation
in Letters of Credit in excess of its pro  rata share of its
participation therein as provided for in this Credit Agreement, such Lender
shall forthwith purchase from the other Lenders such participations in the
Loans made by them or in their participation in Letters of Credit as shall be
necessary to cause such purchasing Lender to share the excess payment accruing
to all Lenders in accordance with their respective ratable shares as provided
for in this Credit Agreement; provided, however, that if all or
any portion of such excess is thereafter recovered from such purchasing Lender,
such purchase from each Lender shall be rescinded and each such Lender shall
repay to the purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such Lender’s ratable share
(according to the proportion of (i) the amount of such Lender’s required
repayment to (ii) the total amount so recovered from the purchasing
Lender) or any interest or other amount paid or payable by the purchasing
Lender in respect to the total

 

48

 

amount so recovered.  The
Borrower agree that any Lender so purchasing a participation from another
Lender pursuant to this Section 2.7 may, to the fullest extent
permitted by law, exercise all of its rights of payment (including the right of
setoff) with respect to such participation as fully as if such Lender were the
direct creditor of the Borrower in the amount of such participation.

 

2.8                               Allocation of Payments; Pro
Rata Treatment.

 

(a)                                  Allocation
of Payments Prior to Event of Default; Payments Generally. Each borrowing
of Revolving Loans and any reduction of the Revolving Credit Commitments shall
be made pro  rata according to the respective Revolving Credit
Commitment Percentages of the Lenders. 
Each payment under this Agreement or any Note shall be applied, first,
to any Fees then due and owing pursuant to Article IV, second, to
interest then due and owing in respect of the Swing Loans, third to principal then
due and owing hereunder and under the Swing Loans, fourth, to interest then due
and owing in respect of the Revolving Loans and lastly, to principal then due
and owing hereunder and under the Revolving Loans.  Each payment on account of any Fees pursuant
to Article IV shall be made pro  rata in
accordance with the respective amounts due and owing (except the Issuing Bank
Fees which shall be payable solely to the Issuing Bank).  Each payment (other than prepayments) by the
Borrower on account of principal of and interest on the Revolving Loans shall
be allocated pro  rata among the Lenders in accordance with the
respective principal amounts of their outstanding Loans.  Payments made pursuant to Section 4.9
shall be applied in accordance with such Section.  Each voluntary and mandatory prepayment on
account of principal of the Loans shall be applied in accordance with Section 2.2(a) or
(b), as applicable.

 

(b)                                 Allocation
of Payments After Event of Default and Proceeds of Collateral.  Notwithstanding any other provisions of this
Credit Agreement or any other Credit Document to the contrary, after the
occurrence and during the continuance of an Event of Default, all amounts
collected or received by the Agent or any Lender on account of the Obligations
(whether in an insolvency or bankruptcy case or proceeding or otherwise) or any
other amounts outstanding under any of the Credit Documents or in respect of
the Collateral (including, without limitation, any funds on deposit in any
Lockbox Account, other deposit account, or the Cash Concentration Account)
shall be paid over or delivered as follows:

 

FIRST, to the payment of
all reasonable out-of-pocket costs and expenses (including without limitation
reasonable attorneys’ fees) of the Agent in connection with enforcing the
rights of the Lenders under the Credit Documents, any protective advances made
by the Agent with respect to the Collateral under or pursuant to the terms of
the Security Documents;

 

SECOND, to payment of any
fees owed to the Agent or an Issuing Bank hereunder or under any other Credit
Document;

 

THIRD, to the payment of
all reasonable out-of-pocket costs and expenses, (including, without
limitation, reasonable attorneys’ fees) of each of the Lenders in connection
with enforcing its rights under the Credit Documents;

 

49

 

FOURTH, to the payment of all Obligations consisting
of accrued fees and interest payable to the Lenders hereunder (and Wachovia,
with respect to Swing Loans) in connection with the Loans and the Revolving
Credit Commitments;

 

FIFTH, to the payment of the
outstanding principal amount of the Swing Loans, and then to the payment of the
outstanding principal amount of the Revolving Loans and to the payment or cash
collateralization of the outstanding Letters of Credit Obligations, pro  rata,
as set forth below and including with respect to any Lender Hedging Agreement, to the extent such Lender
Hedging Agreement is permitted by this
Agreement, any breakage, termination or other payments due under such Lender
Hedging Agreement and any interest accrued
thereon;

 

SIXTH, to all other Obligations which shall have
become due and payable under the Credit Documents and not repaid pursuant to
clauses “FIRST” through “FIFTH” above, including all liabilities and
obligations now or hereafter arising from or in connection with any Cash
Management Products provided by any of Lenders; and

 

SEVENTH, to the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus.

 

In carrying out the
foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category;
(b) except for payments on Swing Loans, each of the Lenders shall receive
an amount equal to its pro rata share (based on the proportion that its then
outstanding Revolving Loans, Letters of Credit Obligations and obligations outstanding under the Lender
Hedging Agreements permitted by this Agreement bears to the aggregate then
outstanding Revolving Loans, Letters of Credit Obligations, and obligations
outstanding under the Lender Hedging Agreements) of amounts available to
be applied pursuant to clauses “THIRD”, “FOURTH,” “FIFTH,” and “SIXTH” above;
(c) to the extent that any amounts available for distribution pursuant to
clause “FIFTH” above are attributable to the issued but undrawn
amount of outstanding Letters of Credit, such amounts shall be held by the
Agent in a cash collateral account (which account shall be an interest bearing
checking account) and applied (x) first, to reimburse the Issuing Bank
from time to time for any drawings under such Letters of Credit and
(y) then, following the expiration of any particular  Letter of Credit, the cash collateral held therefor to all other obligations of the types described in
clause “SIXTH” above in the manner provided in this Section 2.8 and
in the Security Documents.

 

2.9                               Extensions
and Conversions.

 

Subject to the terms of Article V,
the Borrower shall have the option, on any Business Day, to extend existing
Eurodollar Loans into a subsequent permissible Interest Period, to convert
Revolving Loans that are Base Rate Loans into Eurodollar Loans, or to convert
Eurodollar Loans into Base Rate Loans; provided, however, that (i) except as provided in Section 4.10,
Eurodollar Loans may be converted into Base Rate Loans only on the last day of
the Interest Period applicable thereto, (ii) Eurodollar Loans may be extended,
and Base Rate Loans may be converted into Eurodollar Loans, only if no Default
or Event of Default is in existence on the date of extension or conversion, (iii)
Loans extended as, or converted into, Eurodollar Loans

 

50

 

shall be subject to the
terms of the definition of “Interest Period” and shall be in such
minimum amounts as provided in with respect to Revolving Loans, Section 2.1(d)(i), and (iv) no more than eight (8) separate Eurodollar
Loans shall be outstanding hereunder at any time.  Each such extension or conversion shall be
effected by the Borrower by giving a written Notice of Extension/Conversion (or
telephone notice promptly confirmed in writing) to the Agent prior to 2:00 P.M.
on the Business Day of, in the case of the conversion of a Eurodollar Loan into
a Base Rate Loan, and on the third (3rd) Business Day prior to, in
the case of the extension of a Eurodollar Loan as, or conversion of a Base Rate
Loan into, a Eurodollar Loan, the date of the proposed extension or conversion,
specifying the date of the proposed extension or conversion, the Loans to be so
extended or converted, the types of Loans into which such Loans are to be
converted and, if appropriate, the applicable Interest Periods with respect
thereto.  Each request for extension or
conversion shall constitute a representation and warranty by the Borrower of
the matters specified in Article V. In the event the Borrower fails
to request an extension or conversion of any Eurodollar Loan in accordance with
this Section, or any such conversion or extension is not permitted or required
by this Section, then such Loan shall be automatically converted into a Base
Rate Loan at the end of the Interest Period applicable thereto.  The Agent shall give each Lender notice as
promptly as practicable of any such proposed extension or conversion affecting
any Loan.

 

2.10                        Replacement
of Lender.

 

In the event that any
Lender or, to the extent applicable, any participant thereof (the “Affected Lender”),

 

(a)                                  fails to perform its obligations to fund any portion of the
Loans or to issue any Letter of Credit when required to do so by the terms of
the Credit Documents;

 

(b)                                 demands
payment under the tax provisions of Section 2.6, the reserve or
capital adequacy provisions of Section 4.7, or the regulatory
change provisions in Section 4.9 or the funding indemnity
provisions of Section 4.10 in an amount the Borrower deems
materially in excess of the amounts with respect thereto demanded by the other
Lenders; or

 

(c)                                  refuses
to consent to a proposed amendment, modification, waiver or other action
requiring consent of the holders of 100% of the Revolving Credit Commitment
Percentage under Section 14.9 that is consented to by the Required
Lenders prior to such replacement of any Lenders in connection therewith;

 

then,
so long as no Event of Default exists, the Borrower shall have the right to
seek one or more replacement lenders which is reasonably satisfactory to the
Agent (the “Replacement Lender”).  The Replacement Lender shall purchase the
interests of the Affected Lender in the Loans, the Letters of Credit and its
Revolving Credit Commitment and shall assume the obligations of the Affected
Lender hereunder and under the other Credit Documents upon execution by the
Replacement Lender of an Assignment and Acceptance and the tender by it to the
Affected Lender of a purchase price agreed between it and the Affected Lender (or,
if they are unable to agree, a purchase price in the amount of the Affected
Lender’s Revolving Credit Commitment Percentage in the Loan and Letter of
Credit Obligations, or appropriate credit support for contingent amounts
included therein, and all other outstanding Obligations then owed to the

 

51

 

Affected
Lender).  Such
assignment by the Affected Lender shall be deemed an early termination of any
Eurodollar Loan to the extent of the Affected Lender’s portion thereof, and the
Borrower will pay to the Affected Lender any resulting amounts due under Section 4.10.  Upon consummation of such assignment, the
Replacement Lender shall become party to this Agreement as a signatory hereto
and shall have all the rights and obligations of the Affected Lender under this
Agreement and the other Credit Documents with a Revolving Credit Commitment
Percentage equal to the Revolving Credit Commitment Percentage of the Affected
Lender, the Affected Lender shall be released from its obligations hereunder
and under the other Credit Documents, and no further consent or action by any
party shall be required.  Upon the
consummation of such assignment, the Borrower, the Agent and the Affected
Lender shall make appropriate arrangements so that a new Revolving Note is
issued to the Replacement Lender if it has acquired a portion of the Revolving  Loans.  The Borrower and the Guarantors shall sign
such documents and take such other actions reasonably requested by the
Replacement Lender to enable it to share in the benefits of the rights created
by the Credit Documents.  Until the
consummation of an assignment in accordance with the foregoing provisions of
this Section 2.10, the Borrower shall continue to pay to the
Affected Lender any Obligations as they become due and payable.

 

ARTICLE III

LETTERS OF CREDIT

 

3.1                               Issuance

 

Subject to the terms and conditions hereof and of the Letter of
Credit Documents, if any, and any other terms and conditions which the Issuing
Bank may reasonably require, the Lenders will participate in the issuance by
the Issuing Bank from time to time of such Letters of Credit in Dollars from
the Original Closing Date until the Maturity Date as the Borrower may request,
in a form reasonably acceptable to the Issuing Bank; provided, however, that
(a) the Letter of Credit Obligations outstanding shall not at any time exceed
the Letter of Credit Committed Amount and (b) the aggregate Working Capital
Obligations outstanding shall not at any time exceed the lesser of (A) the
Revolving Credit Committed Amount then in effect and (B) the Borrowing
Base.  No Letter of Credit shall (x) have
an original expiry date more than one year from the date of issuance or (y) as
originally issued or as extended, have an expiry date extending beyond the
Maturity Date (but, subject to the foregoing, may provide for automatic renewal
in the absence of notice of non-renewal by the Issuing Bank).  Each Letter of Credit shall comply with the
related Letter of Credit Documents.  The
issuance and expiry date of each Letter of Credit shall comply with the related
Letter of Credit Documents.  The issuance
and expiry date of each Letter of Credit shall be a Business Day.  The Existing Letters of Credit shall be
deemed to have been issued hereunder on the Original Closing Date, and no
request for issuance thereof need be made.

 

3.2                               Notice
and Reports.

 

The request for the
issuance of a Letter of Credit shall be submitted by the Borrower to the
Issuing Bank (with a copy to the Agent) at least two (2) Business Days prior to
the requested date of issuance.  The
Issuing Bank (other than Wachovia, so long as it also
is the Agent) will give the Agent written or telex notice in substantially the
form of Exhibit O or telephonic notice

 

52

 

confirmed
promptly thereafter in writing, of the issuance of a Letter of Credit.  In addition, upon request, the Issuing Bank
will disseminate to the Agent and each of the Lenders a detailed report
specifying the Letters of Credit which are then issued and outstanding and any
activity with respect thereto which may have occurred since the date of the
prior report, and including therein, among other things, the beneficiary, the
face amount and the expiry date as well as any payment or expirations which may
have occurred.

 

3.3                               Participation.

 

Each Lender, upon
issuance of a Letter of Credit, shall be deemed to have purchased without
recourse a risk participation from the Issuing Bank in such Letter of Credit
and the obligations arising thereunder, in each case
in an amount equal to its Revolving Credit Commitment Percentage of such Letter
of Credit, and shall absolutely, unconditionally and irrevocably assume, as
primary obligor and not as surety, and be obligated to pay to the Issuing Bank therefor and discharge when due, its Revolving Credit
Commitment Percentage of the obligations arising under such Letter of
Credit.  Without limiting the scope and
nature of each Lender’s participation in any Letter of Credit, to the extent
that the Issuing Bank has not been reimbursed as required hereunder or under
any such Letter of Credit, each such Lender shall pay to the Issuing Bank its
Revolving Credit Commitment Percentage of such unreimbursed
drawing pursuant to the provisions of Section 3.4.  The obligation of each Lender to so reimburse
the Issuing Bank shall be absolute and unconditional and shall not be affected
by the occurrence of a Default, an Event of Default or any other occurrence or
event.  Any such reimbursement shall not
relieve or otherwise impair the obligation of the Borrower to reimburse the
Issuing Bank under any Letter of Credit, together with interest as hereinafter
provided.

 

3.4                               Reimbursement.

 

In the event of any
drawing under any Letter of Credit, the Issuing Bank will promptly notify the
Borrower.  Unless the Borrower shall
immediately notify the Issuing Bank that the Borrower intends to otherwise
reimburse the Issuing Bank for such drawing, the Borrower shall be deemed to
have requested that the Lenders make a Revolving Loan in the amount of the
drawing as provided in Section 3.5 on the related Letter of Credit,
the proceeds of which will be used to satisfy the related reimbursement
obligations.  The Borrower promises to
reimburse the Issuing Bank on the day of drawing under any Letter of Credit
(either with the proceeds of a Revolving Loan obtained hereunder or otherwise)
in same day funds.  If the Borrower shall
fail to reimburse the Issuing Bank as provided hereinabove, the unreimbursed amount of such drawing shall bear interest at
a per annum rate equal to the Base Rate plus the sum of (i) the Applicable Percentage for Base Rate Loans and (ii)
two percent (2%).  The Borrower’s
reimbursement obligations hereunder shall be absolute and unconditional under
all circumstances irrespective of any rights of setoff, counterclaim or defense
to payment the Borrower may claim or have against the Issuing Bank, the Agent,
the Lenders, the beneficiary of the Letter of Credit drawn upon or any other
Person, including without limitation any defense based on any failure of the
Borrower to receive consideration or the legality, validity, regularity or
unenforceability of the Letter of Credit. 
The Issuing Bank will promptly notify the other Lenders of the amount of
any unreimbursed drawing and each Lender shall
promptly pay to the Agent for the account of the Issuing Bank in Dollars and in
immediately available funds, the amount of such Lender’s Revolving Credit
Commitment Percentage of such unreimbursed
drawing.  Such payment shall be made on
the Business Day such notice is received by such Lender from the Issuing Bank
if

 

53

 

such
notice is received at or before 2:00 P.M. otherwise such payment shall be made
at or before 12:00 Noon on the Business Day next succeeding the day such notice
is received.  If such Lender does not pay
such amount to the Issuing Bank in full upon such request, such Lender shall,
on demand, pay to the Agent for the account of the Issuing Bank interest on the
unpaid amount during the period from the date of such drawing until such Lender
pays such amount to the Issuing Bank in full at a rate per annum equal to, if
paid within two (2) Business Days of the date that such Lender is required to
make payments of such amount pursuant to the preceding sentence, the Federal
Funds Rate and thereafter at a rate equal to the Base Rate.  Each Lender’s obligation to make such payment
to the Issuing Bank, and the right of the Issuing Bank to receive the same,
shall be absolute and unconditional, shall not be affected by any circumstance
whatsoever and without regard to the termination of this Credit Agreement or
the Revolving Credit Commitments hereunder, the existence of a Default or Event
of Default or the acceleration of the obligations of the Borrower hereunder and
shall be made without any offset, abatement, withholding or reduction
whatsoever.  Simultaneously with the
making of each such payment by a Lender to the Issuing Bank, such Lender shall,
automatically and without any further action on the part of the Issuing Bank or
such Lender, acquire a participation in an amount equal to such payment
(excluding the portion of such payment constituting interest owing to the
Issuing Bank) in the related unreimbursed drawing
portion of the Letter of Credit Obligation and in the interest thereon and in
the related Letter of Credit Documents, and shall have a claim against the
Borrower with respect thereto.

 

3.5                               Repayment
with Revolving Loans.

 

On any day on which the
Borrower shall have requested, or been deemed to have requested, a Revolving
Loan advance to reimburse a drawing under a Letter of Credit, the Agent shall
give notice to the Lenders that a Revolving Loan has been requested or deemed
requested by the Borrower to be made in connection with a drawing under a
Letter of Credit, in which case a Revolving Loan advance comprised of Base Rate
Loans (or Eurodollar Loans to the extent the Borrower has complied with the
procedures of Section 2.1(d)(i) with
respect thereto) shall be immediately made to the Borrower by all Lenders
(notwithstanding any termination of the Revolving Credit Commitments pursuant
to Section 11.2) pro  rata based on the respective
Revolving Credit Commitment Percentages of the Lenders (determined before
giving effect to any termination of the Revolving Credit Commitments pursuant
to Section 11.2) and the proceeds thereof shall be paid directly by
the Agent to the Issuing Bank for application to the respective Letter of
Credit Obligations.  Each such Lender
hereby irrevocably agrees to make its Revolving Credit Commitment Percentage of
each such Revolving Loan immediately upon any such request or deemed request in
the amount, in the manner and on the date specified in the preceding sentence notwithstanding
(i) the amount of such borrowing may not comply with
the minimum amount for advances of Revolving Loans otherwise required
hereunder, (ii) whether any conditions specified in Article V are
then satisfied, (iii) whether a Default or an Event of Default then exists,
(iv) failure for any such request or deemed request for Revolving Loan to be
made by the time otherwise required hereunder, (v) whether the date of such
borrowing is a date on which Revolving Loans are otherwise permitted to be made
hereunder or (vi) any termination of the Revolving Credit Commitments relating
thereto immediately prior to or contemporaneously with such borrowing.  In the event that any Revolving Loan cannot
for any reason be made on the date otherwise required above (including, without
limitation, as a result of the commencement of a bankruptcy or insolvency case
or proceeding with respect to the Borrower), then each such Lender hereby
agrees that it shall forthwith purchase (as of the date

 

54

 

such borrowing would
otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) from the Issuing
Bank such participation in the outstanding Letter of Credit Obligations as
shall be necessary to cause each such Lender to share in such Letter of Credit
Obligations ratably (based upon the respective Revolving Credit Commitment
Percentages of the Lenders (determined before giving effect to any termination
of the Revolving Credit Commitments pursuant to Section 11.2)), provided
that at the time any purchase of participation pursuant to this sentence is
actually made, the purchasing Lender shall be required to pay to the Issuing
Bank, to the extent not paid to the Issuing Bank by the Borrower in accordance
with the terms of Section 3.4, interest on the principal amount of
participation purchased for each day from and including the day upon which such
borrowing would otherwise have occurred to but excluding the date of payment
for such participation, at the rate equal to, if paid within two (2) Business
Days of the date of the Revolving Loan advance, the Federal Funds Rate, and
thereafter at a rate equal to the Base Rate.

 

3.6                               Renewal,
Extension.

 

The renewal or extension
of any Letter of Credit shall, for purposes hereof, be treated in all respects
the same as the issuance of a new Letter of Credit hereunder.

 

3.7                               Uniform
Customs and Practices.

 

The Issuing Bank may
provide that the Letters of Credit shall be subject to the UCP,
in which case the UCP may be incorporated by
reference therein and deemed in all respects to be a part thereof.

 

3.8                               Indemnification;
Nature of Issuing Bank’s Duties.

 

(a)                                  In
addition to its other obligations under this Article III, the
Borrower agrees to protect, indemnify, pay and save the Issuing Bank harmless
from and against any and all claims, demands, liabilities, damages, losses,
costs, charges and expenses (including reasonable attorneys’ fees) that the
Issuing Bank may incur or be subject to as a consequence, direct or indirect,
of (A) the issuance of any Letter of Credit or (B) the failure of the Issuing
Bank to honor a drawing under a Letter of Credit as a result of Government
Acts.

 

(b)                                 As
between the Borrower and the Issuing Bank, the Borrower shall assume all risks
of the acts, omissions or misuse of any Letter of Credit by the beneficiary
thereof.  The Issuing Bank shall not be
responsible:  (i)
for the form, validity, sufficiency, accuracy, genuineness or legal effect of
any document submitted by any party in connection with the application for and
issuance of any Letter of Credit, even if it should in fact prove to be in any
or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii)
for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part,
that may prove to be invalid or ineffective for any reason; (iii) for errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise, whether or not they be in
cipher; (iv) for any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under a Letter of Credit

 

55

 

or
of the proceeds thereof; and (v) for any consequences arising from causes
beyond the control of the Issuing Bank, including, without limitation, any
Government Acts.  None of the above shall
affect, impair, or prevent the vesting of the Issuing Bank’s rights or powers
hereunder.

 

(c)                                  In
furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Issuing Bank, under or
in connection with any Letter of Credit or the related certificates, if taken
or omitted in good faith, shall not put such Issuing Bank under any resulting
liability to the Borrower.  It is the
intention of the parties that this Credit Agreement shall be construed and
applied to protect and indemnify the Issuing Bank against any and all risks
involved in the issuance of the Letters of Credit, all of which risks are
hereby assumed by the Borrower, including, without limitation, any and all
Government Acts.  The Issuing Bank shall
not, in any way, be liable for any failure by the Issuing Bank or anyone else
to pay any drawing under any Letter of Credit as a result of any Government
Acts or any other cause beyond the control of the Issuing Bank.

 

(d)                                 Nothing
in this Section 3.8 is intended to limit the reimbursement
obligations of the Borrower contained in Section 3.4.  The obligations of the Borrower under this Section 3.8
shall survive the termination of this Credit Agreement.  No act or omission of any current or prior
beneficiary of a Letter of Credit shall in any way affect or impair the rights
of the Issuing Bank to enforce any right, power or benefit under this Credit
Agreement.

 

(e)                                  Notwithstanding
anything to the contrary contained in this Article III, the
Borrower shall have no obligation to indemnify the Issuing Bank in respect of
any liability incurred by the Issuing Bank (i)
arising solely out of the gross negligence or willful misconduct of the Issuing
Bank on any action or omission by the Issuing Bank not in accordance with the
standards of care specified in the UCP or the UCC, as determined by a court of competent jurisdiction, or
(ii) caused by the Issuing Bank’s failure to pay under any Letter of Credit
after presentation to it of a request strictly complying with the terms and
conditions of such Letter of Credit, as determined by a court of competent
jurisdiction, unless such payment is prohibited by any law, regulation, court
order or decree.

 

3.9                               Responsibility
of Issuing Bank.

 

It is expressly
understood and agreed that the obligations of the Issuing Bank hereunder to the
Lenders are only those expressly set forth in this Credit Agreement and that
the Issuing Bank shall be entitled to assume that the conditions precedent set
forth in Article III or V have been satisfied unless it shall have
acquired actual knowledge that any such condition precedent has not been
satisfied; provided, however, that nothing set forth in this Article III
shall be deemed to prejudice the right of any Lender to recover from the
Issuing Bank any amounts made available by such Lender to the Issuing Bank
pursuant to this Article III in the event that it is determined by
a court of competent jurisdiction that the payment with respect to a Letter of
Credit constituted gross negligence or willful misconduct on the part of the
Issuing Bank.

 

56

 

3.10                        Conflict
with Letter of Credit Documents.

 

In the event of any
conflict between this Credit Agreement and any Letter of Credit Document
(including any letter of credit application), this Credit Agreement shall
control.

 

ARTICLE IV

INTEREST AND FEES

 

4.1                               Interest
on Loans.

 

Subject to the provisions
of Section 4.2, the Loans shall bear interest as follows:

 

(a)                                  Base
Rate Loans.  During such periods as
the Loans shall be comprised of Base Rate Loans, each such Base Rate Loan shall
bear interest at a per annum rate equal to the sum of the Base Rate plus
the Applicable Percentage;

 

(b)                                 Eurodollar
Loans.  During such periods as the
Loans shall be comprised of Eurodollar Loans, each such Eurodollar Loan shall
bear interest at a per annum rate equal to the sum of the Eurodollar Rate plus
the Applicable Percentage; and

 

(c)                                  LIBOR
Index Loans.  During such periods as
the Swing Loans shall bear interest at the LIBOR Index Rate, each such LIBOR
Index Loan shall bear interest at a per annum rate equal to the sum of the
LIBOR Index Rate plus the Applicable Percentage.

 

Interest on the Loans
shall be payable in arrears on each Interest Payment Date.

 

4.2                               Interest
After Event of Default.

 

Interest on any amount of
matured principal under the Loans, and interest on the amount of principal
under the Revolving Loans outstanding as of the date an Event of Default
occurs, and at all times thereafter until the earlier of the date upon which
(a) all Obligations have been paid and satisfied in full or (b) such Event of
Default shall have been cured or waived, shall be payable on demand at the
Default Rate.  Interest shall be payable
on any other amount due hereunder and shall accrue at the Default Rate, from
the date due and payable until paid in full.

 

4.3                               Commitment
Fee.

 

The Borrower shall pay to
the Agent for the benefit of the Lenders the Commitment Fee due in
respect of each calendar month within five (5) days after receipt of a
statement therefor.

 

4.4                               Lenders’
Fees/Agent’s Fees.

 

On the Closing Date the
Agent shall pay to each Lender its respective Lender’s Fees that are required
to be paid on the Closing Date pursuant to the terms of the Fee Letter with the
Agent.  The Borrower shall pay all fees
required to be paid to the Agent under the Fee Letter at the times and in the
amounts set forth therein.

 

57

 

4.5                               Letter
of Credit Fees.

 

(a)                                  Letter
of Credit Fee.  In consideration of
the issuance of standby Letters of Credit hereunder, the Borrower promises to
pay to the Agent for the account of each Lender a monthly fee (the “Letter
of Credit Fee”) on such Lender’s Revolving Credit Commitment Percentage of
the average daily maximum amount available to be drawn under each such Letter
of Credit computed at a per annum rate for each day from the date of issuance
(or the Original Closing Date, as to Existing Letters of Credit) to the date of expiration equal to the Applicable
Percentage for Eurodollar Loans.  The
Letter of Credit Fee will be payable five (5) days after receipt of an invoice therefor.

 

(b)                                 Issuing
Bank Fees.  In addition to the Letter
of Credit Fee payable pursuant to clause (a) above, the Borrower promises to
pay to the Issuing Bank for its own account without sharing by the other
Lenders letter of credit fronting fees in the amount of 1/8% and the
negotiation fees agreed to by the Borrower and the Issuing Bank from time to
time and the customary charges from time to time of the Issuing Bank with
respect to the issuance, amendment, transfer, administration, cancellation and
conversion of, and drawings under, such Letters of Credit (collectively, the “Issuing
Bank Fees”).

 

4.6                               Authorization
to Charge Account.

 

The Borrower hereby
authorizes the Agent to charge the Borrower’s Swing Loan account or Revolving
Loan accounts, as applicable, with the amount of all payments and fees due
hereunder to the Lenders, the Agent and the Issuing Bank as and when such payments
become due.  The Borrower confirms that
any charges which the Agent may so make to the Borrower’s Swing Loan Account or
Revolving Loan accounts as herein provided will be made as an accommodation to
the Borrower and solely at the Agent’s discretion.

 

4.7                               Indemnification
in Certain Events.

 

If after the Original
Closing Date, either (a) any change in or in the interpretation of any law or
regulation is introduced, including, without limitation, with respect to
reserve requirements, applicable to any Funding Bank or any of the Lenders, or
(b) a Funding Bank or any of the Lenders complies with any future guideline or
request from any central bank or other Governmental Authority or (c) a Funding
Bank or any of the Lenders determines that the adoption of any applicable law,
rule or regulation regarding capital adequacy, or any change therein, or any
change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or
administration thereof has or would have the effect described below, or a
Funding Bank or any of the Lenders complies with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, and in the case of any event set
forth in this clause (c), such adoption, change or compliance has or would have
the direct or indirect effect of reducing the rate of return on any of the
Lenders’ capital as a consequence of its obligations hereunder to a level below
that which such Lender could have achieved but for such adoption, change or
compliance (taking into consideration the Funding Bank’s or Lenders’ policies
with respect to capital adequacy) by an amount deemed by such Lender to be material,
and the result of any of the foregoing events described in clauses (a), (b) or
(c) is or results in an increase in the cost to any of the Lenders of funding
or maintaining the

 

58

 

Revolving Credit Committed
Amount, the Revolving Loans or the Letters of Credit, then the Borrower shall
from time to time upon demand by the Agent, pay to the Agent additional amounts
sufficient to indemnify the Lenders against such increased cost.  A certificate as to the amount of such
increased cost shall be submitted to the Borrower by the Agent and shall be
conclusive and binding absent manifest error.

 

4.8                               Inability
To Determine Interest Rate.

 

If prior to the first day
of any Interest Period, (a) the Agent shall have determined in good faith
(which determination shall be conclusive and binding upon the Borrower) that,
by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for such
Interest Period, (b) the Agent has received notice from the Required Lenders
that the Eurodollar Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such Lenders of
making or maintaining their Eurodollar Loans during such Interest Period, or
(c) Dollar deposits in the principal amounts of the Eurodollar Loans to which
such Interest Period is to be applicable are not generally available in the
London interbank market, the Agent shall give
telecopy or telephonic notice thereof to the Borrower and the Lenders as soon
as practicable thereafter, and will also give prompt written notice to the
Borrower when such conditions no longer exist. 
If such notice is given (i) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be
made as Base Rate Loans, (ii) any Loans that were to have been converted on the
first day of such Interest Period to or continued as Eurodollar Loans shall be
converted to or continued as Base Rate Loans and (iii) each outstanding
Eurodollar Loan shall be converted, on the last day of the then-current
Interest Period thereof, to Base Rate Loans. 
Until such notice has been withdrawn by the Agent, no further Eurodollar
Loans shall be made or continued as such, nor shall the Borrower have the right
to convert Base Rate Loans to Eurodollar Loans.

 

4.9                               Illegality.

 

Notwithstanding any other
provision herein, if the adoption of or any change in any law, treaty, rule or
regulation or final, non-appealable determination of
an arbitrator or a court or other Governmental Authority or in the
interpretation or application thereof occurring after the Original Closing Date
shall make it unlawful for any Lender to make or maintain Eurodollar Loans as
contemplated by this Credit Agreement, (a) such Lender shall promptly give
written notice of such circumstances to the Borrower and the Agent (which
notice shall be withdrawn whenever such circumstances no longer exist), (b) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert a Base Rate Loan to Eurodollar Loans shall
forthwith be canceled and, until such time as it shall no longer be unlawful
for such Lender to make or maintain Eurodollar Loans, such Lender shall then have
a commitment only to make a Base Rate Loan when a Eurodollar Loan is requested
and (c) such Lender’s Loans then outstanding as Eurodollar Loans, if any, shall
be converted automatically to Base Rate Loans on the respective last days of
the then current Interest Periods with respect to such Loans or within such
earlier period as required by law.  If
any such conversion of a Eurodollar Loan occurs on a day which is not the last
day of the then current Interest Period with respect thereto, the Borrower
shall pay to such Lender such amounts, if any, as may be required pursuant to Section 4.10.

 

59

 

4.10                        Funding
Indemnity.

 

The Borrower promises to
indemnify each Lender and to hold each Lender harmless from any loss or expense
which such Lender may sustain or incur (other than through such Lender’s gross
negligence or willful misconduct) as a consequence of (a) default by the
Borrower in making a borrowing of, conversion into or extension of Eurodollar
Loans after the Borrower has given a notice requesting the same in accordance
with the provisions of this Credit Agreement, (b) default by the Borrower in
making any prepayment of a Eurodollar Loan after the Borrower has given a
notice thereof in accordance with the provisions of this Credit Agreement, and
(c) the making of a prepayment of Eurodollar Loans on a day which is not the
last day of an Interest Period with respect thereto.  With respect to Eurodollar Loans, such indemnification
may include an amount equal to the excess, if any, of (i)
the amount of interest which would have accrued on the amount so prepaid, or
not so borrowed, converted or extended, for the period from the date of such
prepayment or of such failure to borrow, convert or extend to the last day of
the applicable Interest Period (or, in the case of a failure to borrow, convert
or extend, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Eurodollar
Loans provided for herein over (ii) the amount of interest (as
reasonably determined by such Lender) which would have accrued to such Lender
on such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank Eurodollar
market.  This covenant shall survive the
termination of this Credit Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

ARTICLE V

CONDITIONS PRECEDENT

 

The obligation of the
Lenders to make any Revolving Loan or of the Issuing Bank to issue any Letter
of Credit hereunder is subject to the satisfaction of, or waiver of, the
following conditions precedent:

 

5.1                               Closing
Conditions for Closing under Original Credit Agreement.

 

The obligation of each
Lender to make the Loans or of Wachovia to make any Swing Loan and/or of the
Issuing Bank to issue Letters of Credit hereunder on the Original Closing Date
was subject to the satisfaction or waiver by the Agent in its reasonable
discretion, on or prior to the Original Closing Date, of  the following conditions precedent,
each of which was satisfied on or before the Original Closing Date:

 

(a)                                  Executed
Credit Documents.  Receipt by the
Agent of duly executed counterparts of: the Original Credit Agreement, any
requested Revolving  Notes; the Swing
Note, the Contribution Agreement, the Security Documents; and all other Credit
Documents, each in form and substance acceptable to the Lenders in their
reasonable discretion.

 

(b)                                 Organizational
Documents.  Receipt by the Agent of
the following:

 

(i)                                     Charter
Documents.  Copies of the articles or
certificates of incorporation or other formation or charter documents of each
Credit Party

 

60

 

certified to be
true and complete as of a recent date by the appropriate Governmental Authority
of the state or other jurisdiction of its incorporation or organization and
certified by a secretary or assistant secretary of such Credit Party to be true
and correct as of the Original Closing Date.

 

(ii)                                  Bylaws.  A copy of the bylaws or operating agreement
or similar agreement of each Credit Party certified by a secretary or assistant
secretary of such Credit Party to be true and correct as of the Original
Closing Date.

 

(iii)                               Resolutions.  Copies of resolutions of the Board of Directors
or similar managing body of each Credit Party approving and adopting the Credit
Documents to which it is a party, the transactions contemplated therein and
authorizing execution and delivery thereof, certified by a secretary or
assistant secretary of such Credit Party to be true and correct and in force
and effect as of the Original Closing Date.

 

(iv)                              Good
Standing.  Copies of (i) certificates of good standing, existence or its
equivalent with respect to each Credit Party certified as of a recent date by
the appropriate Governmental Authorities of the state or other jurisdiction of
incorporation or organization and each other jurisdiction in which the failure
to so qualify and be in good standing could reasonably be expected to have a
Material Adverse Effect; provided, however, that to the extent
that any such certificates from other jurisdictions are not reasonably
available on the Original Closing Date, they may be provided within thirty (30)
days thereafter and (ii) to the extent available, a certificate indicating
payment of all corporate or other franchise taxes certified as of a recent date
by the appropriate taxing Governmental Authorities.

 

(v)                                 Incumbency.  An incumbency certificate
of each Credit Party certified by a secretary or assistant secretary to be true
and correct as of the Original Closing Date.

 

(c)                                  Financial
Statements.  Receipt by the Agent and
the Lenders of the financial statements and accompanying accountants’ opinion
described in Section 6.6 and such other information relating to the
Credit Parties as the Agent may reasonably require in connection with the
structuring and syndication of credit facilities of the type described herein.

 

(d)                                 Opinions
of Counsel.  Receipt by the Agent of
an opinion, or opinions (which shall cover, among other things, authority,
legality, validity, binding effect, enforceability and attachment and
perfection of Liens) reasonably satisfactory to the Agent, addressed to the
Agent and the Lenders and dated the Original Closing Date, from legal counsel
to the Credit Parties.

 

(e)                                  Personal
Property Collateral.  The Agent shall
have received:

 

(i)                                     termination
of all UCC-1 financing statements in favor of Bank Boston, N.A.
and UBS AG, Stamford Branch and searches of UCC filings in the

 

61

 

jurisdiction of
organization of each Credit Party, the chief executive office of each Credit
Party and each jurisdiction where any Collateral is located or where a filing
could have been properly made by a creditor of a Credit Party, copies of the
financing statements on file in such jurisdictions and evidence that, upon
filing of such termination statements for all such UCC-1 financing statements
in favor of Bank Boston, N.A. and UBS
AG, Stamford Branch, no Liens exist other than Permitted Liens;

 

(ii)                                  UCC financing statements for each appropriate jurisdiction
as is necessary, in the Agent’s reasonable discretion, to perfect the Agent’s
security interest in the Collateral;

 

(iii)                               searches of ownership of intellectual property in the
appropriate governmental offices and such patent/trademark/copyright filings as
reasonably requested by the Agent;

 

(iv)                              all
stock certificates evidencing the Capital Stock pledged to the Agent pursuant
to the Pledge Agreement, together with duly executed in blank undated stock
powers attached thereto (other than the Capital Stock of Lion Oil);

 

(v)                                 Deposit
Account Control Agreements and Commodities
Account Control Agreements with respect to all deposit accounts and
commodities accounts of the Credit Parties listed on Schedule 6.32, except as otherwise provided in Section 9.10;
and

 

(vi)                              to the extent required under the Security Documents, all
instruments and chattel paper in the possession of any of the Credit Parties,
together with allonges or assignments as may be
necessary to perfect the Agent’s security interest in the Collateral.

 

(f)                                    Real
Property Collateral.  The Agent shall
have received a Mortgage and all Real Property Documentation for each parcel or
tract of the Initially Selected Real Estate that constitutes Accepted Real
Estate on such date.

 

(g)                                 Priority
of Liens.  The Agent shall have
received satisfactory evidence that the Agent, on behalf of the Lenders, holds
a perfected, first priority Lien on all Collateral (limited as set forth in
paragraph (f) above, as to Accepted Real Estate), subject to no other Liens
other than Permitted Liens.

 

(h)                                 Opening
Borrowing Base Certificate.  Receipt
by the Agent of a Borrowing Base Certificate dated as of the Closing Date, but
derived from information for September 3, 2004 or such other date
reasonably satisfactory to the Agent, substantially in the form of Exhibit K
and certified by the chief financial officer of the Borrower to be true and
correct as of the Original Closing Date.

 

(i)                                     Evidence
of Insurance.  Receipt by the Agent
of copies of insurance policies or certificates of insurance of the Credit
Parties evidencing liability and casualty insurance meeting the requirements
set forth in the Credit Documents, including, without limitation, naming the Agent
as additional insured.

 

62

 

(j)                                     Corporate
Structure.  The corporate capital and
ownership structure of the Borrower and its Subsidiaries shall be as described
in Schedule 6.9 to the Original Credit Agreement.

 

(k)                                  Governmental,
Shareholder and Third Party Consents. 
Receipt by the Agent of evidence that all governmental, shareholder and
third party consents and approvals necessary in connection with the
transactions contemplated hereby and expiration of all applicable waiting
periods without any action being taken by any authority that could restrain,
prevent or impose any material adverse conditions on such transactions or that
could seek or threaten any of the foregoing, and no law or regulation shall be applicable
which in the reasonable judgment of the Agent could have such effect.

 

(l)                                     Litigation.  There shall not exist any pending or
threatened action, suit, investigation or proceeding against any Credit Party
or its assets that could reasonably be expected to (i)
have a Material Adverse Effect or (ii) affect any transaction contemplated by
this Credit Agreement or any other Credit Document or the ability of the Credit
Parties to perform their respective obligations under the Credit Documents.

 

(m)                               Solvency
Certificate.  Receipt by the Agent of
the Solvency Certificate.

 

(n)                                 Officer’s
Certificates.  Receipt by the Agent
of a certificate or certificates executed by the president or chief financial
officer of the Borrower as of the Original Closing Date stating that (i) after giving effect to the making of the Loans and
application of the proceeds thereof, each Credit Party is in compliance with
all existing financial obligations, (ii) all governmental, shareholder and
third party consents and approvals, if any, with respect to the Credit
Documents and the transactions contemplated thereby have been obtained, (iii)
no action, suit, investigation or proceeding is pending or threatened in any
court or before any arbitrator or governmental instrumentality that purports to
affect any Credit Party or any transaction contemplated by the Credit
Documents, if such action, suit, investigation or proceeding could reasonably
be expected to have a Material Adverse Effect and (iv) immediately after giving
effect to this Credit Agreement, the other Credit Documents and all the
transactions contemplated therein to occur on such date, (A) each of the Credit
Parties is solvent, (B) no Default or Event of Default exists, (C) all
representations and warranties contained herein and in the other Credit
Documents are true and correct in all material respects, and (D) the Borrower
is in compliance with the financial covenant set forth in Article VIII.

 

(o)                                 Fees
and Expenses.  Payment by the
Borrower of all fees and expenses owed by them to the Lenders and the Agent,
including, without limitation, payment to the Agent of the fees set forth in
the Fee Letter shall previously have been made in connection with the First
Amendment to the Original Credit Agreement.

 

(p)                                 Disbursement
Authorization; Payment Instructions. 
Receipt by the Agent of (a) a disbursement authorization covering all
payments reasonably expected to be made by the Borrower in connection with the
transactions contemplated by the Credit Documents to be consummated on the Original
Closing Date, including an itemized estimate of all fees, expenses and other
closing costs and (b) payment instructions with respect to each wire transfer
to be made by the Agent on behalf of the Lenders or the

 

63

 

Borrower or the
Borrower on the Original Closing Date setting forth the amount of such
transfer, the purpose of such transfer, the name and number of the account to
which such transfer is to be made, the name and ABA number of the bank or other
financial institution where such account is located and the name and telephone
number of an individual that can be contacted to confirm receipt of such
transfer.

 

(q)                                 Subordinated
Debt.  Receipt by the Agent of
certified copies of the Senior Subordinated Notes Indenture.

 

(r)                                    Payment
of Existing Working Capital Facility and Termination of Liens.   Receipt by the Agent of a payoff letter
reasonably satisfactory to it regarding payment in full of all indebtedness
under the Credit Agreement dated as of February 28, 2003, as amended, by
and among UBS AG, as agent, the lenders party thereto
and the Borrower, and termination of the commitments of the lenders thereunder and termination of all Liens granted pursuant
thereto.

 

(s)                                  Material
Adverse Change. (i) No Material Adverse Change,
or development reasonably likely to have a Material Adverse Effect, shall have
occurred since June 30, 2003, except for any disclosures made in the
Borrower’s Quarterly Report on Form 10-Q’s filed with the SEC since that date,
and (ii) no occurrence or event which is reasonably likely to have a Material
Adverse Effect shall have occurred since June 30, 2003, except for any
disclosures made in the Borrower’s Quarterly Report on Form 10-Q’s filed with
the SEC since that date, and be continuing.

 

(t)                                    Fees.  On or prior to the Original Closing Date, the
Lenders shall have received payment in full of the fees required to be paid to
the Lenders on the Original Closing Date.

 

(u)                                 Minimum
Excess Availability.  Receipt by the
Agent of evidence reasonably satisfactory to the Agent that the Borrower has
Excess Availability of at least $125,000,000 (without giving effect to clause
(k) of the definition of Borrowing Base for the purpose of calculating such
Excess Availability) as of the Original Closing Date, after giving effect to
the payment of fees and expenses associated with the closing of this Credit
Agreement, the making of the Loans and other extensions of credit and the
application of the proceeds thereof to be made on the Original Closing Date and
after deductions for past due payables and other obligations.

 

(v)                                 Annual
Budget.  Receipt by the Agent of an
annual budget for the fiscal year ended June 30, 2005, together with
financial projections prepared on an annual basis covering the period from the
Original Closing Date to the Maturity Date, and the Agent’s satisfaction with
such budget and financial projections in its reasonable determination.

 

(w)                               Cash
Management System.  The Borrower’s
cash management system is reasonably satisfactory to the Agent and  provides for
control in favor of the Agent on behalf of the Lenders.

 

(x)                                   Minimum
Consolidated Adjusted EBITDA.  Minimum Consolidated Adjusted EBITDA (but without giving effect to paragraph (e) of the
definition thereof)

 

64

 

for the fiscal
year ending June 2004 of not less than $40,000,000, as determined based on
the audited annual financial statements for such fiscal year, or if such
statements are not yet final, in a draft thereof.

 

(y)                                 Other.  Receipt by the Lenders of such other
documents, instruments, agreements or information as reasonably requested by
any Lender, including, without limitation, information regarding litigation,
tax, accounting, labor, insurance, pension liabilities (actual or contingent),
real estate leases, material contracts, debt agreements, property ownership and
contingent liabilities of the Credit Parties.

 

5.2                               Closing
Conditions for Closing under this Amended and Restated Credit Agreement.

 

The obligation of each
Lender to make the Loans or of Wachovia to make any Swing Loan and/or of the
Issuing Bank to issue Letters of Credit hereunder on and after the Closing Date
is subject to the satisfaction or waiver by the Agent in its reasonable
discretion, on or prior to the Closing Date, of  the following conditions precedent:

 

(a)                                  Executed
Credit Documents.  Receipt by the
Agent of duly executed counterparts of this Credit Agreement, the Amended and
Restated Guarantee Agreement in substantially the form of Exhibit B, the
Amended and Restated Pledge Agreement in substantially the form of Exhibit D,
the Amended and Restated Security Agreement in substantially the form of Exhibit
E, the Amended and Restated Contribution Agreement in substantially the
form of Exhibit N and all other Credit Documents requested by the Agent,
each in form and substance acceptable to the Lenders in their reasonable
discretion.

 

(b)                                 Organizational
Documents.  Receipt by the Agent of
the following:

 

(i)                                     Charter
Documents.  Copies of any amendments since
the Original Closing Date to the articles or certificates of incorporation or
other formation or charter documents of each Credit Party certified to be true
and complete as of a recent date by the appropriate Governmental Authority of
the state or other jurisdiction of its incorporation or organization and
certified by a secretary or assistant secretary of such Credit Party to be true
and correct as of the Closing Date, or a certificate of such person that there
have been no such amendments since the Original Closing Date and that such
articles or certificates of incorporation or other formation or charter
documents remain in full force and effect.

 

(ii)                                  Bylaws.  A copy of any amendments since the Original
Closing Date to the bylaws or operating agreement or similar agreement of each
Credit Party certified by a secretary or assistant secretary of such Credit
Party to be true and correct as of the Original Closing Date, or a certificate
of such person that there have been no such amendments since the Original
Closing Date and that such bylaws or operating agreement or similar agreement
remain in full force and effect.

 

65

 

(c)                                  Solvency
Certificate.  Receipt by the Agent of
the Solvency Certificate.

 

(d)                                 Officer’s
Certificates.  Receipt by the Agent
of a certificate or certificates executed by the president or chief financial
officer of the Borrower as of the Closing Date stating that (i) immediately after giving effect to this Credit
Agreement, the other Credit Documents and all the transactions contemplated
therein to occur on such date, each Credit Party is in compliance with all
existing financial obligations, (ii) all governmental, shareholder and third
party consents and approvals, if any, with respect to the Credit Documents and
the transactions contemplated thereby have been obtained, (iii) no action,
suit, investigation or proceeding is pending or threatened in any court or
before any arbitrator or governmental instrumentality that purports to affect any
Credit Party or any transaction contemplated by the Credit Documents, if such
action, suit, investigation or proceeding could reasonably be expected to have
a Material Adverse Effect and (iv) immediately after giving effect to this
Credit Agreement, the other Credit Documents and all the transactions
contemplated therein to occur on such date, (A) each of the Credit Parties is
solvent, (B) no Default or Event of Default exists, (C) all representations and
warranties contained herein and in the other Credit Documents are true and
correct in all material respects, and (D) the Borrower is in compliance with
the financial covenant set forth in Article VIII.

 

(e)                                  Fees
and Expenses.  Payment
by the Borrower of all fees and expenses owed by them to the Lenders and the
Agent as of the Closing Date, including, without limitation, payment to the
Agent of the fees set forth in the Fee Letter.

 

(f)                                    Material
Adverse Change. (i) No Material Adverse Change,
or development reasonably likely to have a Material Adverse Effect, shall have
occurred since June 30, 2004, except for any disclosures made in the
Borrower’s Form 10-Q’s filed with the SEC since that date but prior to June 30,
2005, and (ii) no occurrence or event which is reasonably likely to have a
Material Adverse Effect shall have occurred since June 30, 2004, except
for any disclosures made in the Borrower’s Form 10-Q’s filed with the SEC since
that date but prior to June 30, 2005, and be
continuing and (iii) there shall not have occurred any material disruption or
material adverse change in, or other condition with respect to, the United
States financial and capital markets that impair the ability of the Agent to
syndicate the Facility.

 

(g)                                 Last
Date for Occurrence of the IPO.  The
IPO shall occur on or before September 1, 2005.

 

(h)                                 Last
Date for Occurrence of the Closing Date. 
The Closing Date shall occur on or  before September 1, 2005.

 

(i)                                     MLP Transactions Information.  The information concerning the Borrower and
its subsidiaries and Partners, respectively, after giving effect to the IPO,
the transfer of the initial assets to be transferred to Partners or its
designee as described in the S-1 Registration Statement for the IPO and the
execution and delivery of the MLP Omnibus Agreement
and the MLP  Terminaling Services
Agreement (collectively, as used in this Section 5.2, the “MLP Transactions”), shall not, in the Agent’s
judgment, differ in any material adverse manner from the information and other
matters previously disclosed to

 

66

 

the
Agent prior to date hereof, including the descriptions of the  MLP Omnibus
Agreement and the MLP  Terminaling
Services Agreement contained in the excerpt from such S-1 Registration
Statement furnished to the Lenders on or about April 27, 2005.

 

(j)                                     Certain
Acknowledgment Agreements.  Receipt of agreement similar to a Landlord Agreement satisfactory
to the Agent from Partners pertaining to the MLP  Terminaling Services Agreement.

 

(k)                                  No
Default.  No Default or Event of
Default is in existence.

 

(l)                                     Compliance
with Laws.  Material
compliance with all applicable laws and regulations by the Borrower and its
subsidiaries (including, without limitation, the MLP
Transactions) with all applicable federal banking laws, rules and regulations.

 

(m)                               Corporate
Structure.  The corporate capital and
ownership structure of the Borrower and its Subsidiaries shall be as described
in Schedule 6.9.

 

(n)                                 Other.  Receipt by the Lenders of such other
documents, instruments, agreements or information as reasonably requested by
any Lender, including, without limitation, information regarding litigation,
tax, accounting, labor, insurance, pension liabilities (actual or contingent),
real estate leases, material contracts, debt agreements, property ownership and
contingent liabilities of the Credit Parties.

 

5.3                               Condition
to all Loans and Letters of Credit.

 

(a)                                  On
the date of the making of any Loan or the issuance of any Letter of Credit,
both before and after giving effect thereto and to the application of the proceeds
therefrom, the following statements shall be true to
the satisfaction of the Agent (and each request for a Revolving Loan and
request for a Letter of Credit, and the acceptance by the Borrower of the
proceeds of such Revolving Loan or Swing Loan or issuance of such Letter of
Credit, shall constitute a representation and warranty by the Borrower that on
the date of such Revolving Loan, Swing Loan or issuance of such Letter of
Credit before and after giving effect thereto and to the application of the proceeds
therefrom, such statements are true):

 

(i)                                     the
representations and warranties contained in this Credit Agreement are true and
correct in all material respects on and as of the date of such Revolving Loan
or Swing Loan or issuance of such Letter of Credit as though made on and as of
such date, except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations
and warranties shall have been true and complete on and as of such earlier
date); and

 

(ii)                                  no event has occurred and is continuing, or would result
from such Revolving Loan or Swing Loan or issuance of such Letter of Credit or
the application of the proceeds thereof, which would constitute a Default or an
Event of Default under this Credit Agreement.

 

67

 

(b)                                 Notice
of Borrowing and Payment.  On the
date of the making of any Revolving Loan, the Agent shall have received a
Notice of Borrowing and Payment to the extent such Notice of Borrowing and
Payment is required to be given with respect to the making of such Revolving
Loan.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

In order to induce the
Lenders to enter into this Credit Agreement and the Issuing Bank to issue the
Letters of Credit, and to make available the credit facilities contemplated
hereby, the Borrower and (by execution and delivery of the Guaranty Agreement
or of a joinder thereto and incorporation by
reference therein) each Guarantor hereby represents and warrants to the Lenders
and the Issuing Bank as of the Closing Date, the Closing Date and on the date
of each extension of credit hereunder, as follows:

 

6.1                               Organization
and Qualification.

 

Such Credit Party and
each of its Restricted Subsidiaries (i) is a corporation
or limited liability company duly organized, validly existing and in good
standing under the laws of the state of its organization, (ii) has the power
and authority to own its properties and assets and to transact the businesses
in which it is presently, or proposes to be, engaged, and (iii) is duly
qualified and is authorized to do business and is in good standing in every
jurisdiction in which the failure to be so qualified could  reasonably be expected to have a Material
Adverse Effect.  Schedule 6.1
contains a true, correct and complete list of all jurisdictions in which such
Credit Party and its Restricted Subsidiaries are qualified to do business as a
foreign corporation or foreign limited liability company as of the Closing
Date.

 

6.2                               Solvency.

 

The fair saleable value
of such Credit Party’s assets exceeds all  liabilities (other than any
inter-company amounts payable to another Credit Party), including those to be
incurred pursuant to this Credit Agreement. 
Such Credit Party (i) does not have unreasonably
small capital in relation to the business in which it is or proposes to be
engaged or (ii) has not incurred, and does not intend to incur after giving
effect to the transactions contemplated by this Credit Agreement, debts beyond
its ability to pay such debts as they become due.

 

6.3                               Liens;
Inventory.

 

There are no Liens in
favor of third parties with respect to any of the Collateral, including,
without limitation, with respect to the Inventory, wherever located, other than
Permitted Liens.  Upon the proper filing
of financing statements and the proper recordation of other applicable
documents with the appropriate filing or recordation offices in each of the
necessary jurisdictions, the security interests granted pursuant to the Credit
Documents constitute and shall at all times constitute, as required pursuant to
the Credit Documents, valid and enforceable first, prior and perfected Liens on
the Collateral (other than Permitted Liens). 
The Credit Parties are, or will be at the time additional Collateral is
acquired by them, the absolute owners of the Collateral with full right to
pledge, sell, consign, transfer and create a Lien therein,

 

68

 

free
and clear of any and all Liens in favor of third parties, except Permitted
Liens.  The Credit Parties will at their
expense warrant, until all of the Credit and Collateral Termination Events have
occurred, and, at the Agent’s request, defend the Collateral from any and all
Liens (other than Permitted Liens) of any third party.  The Credit Parties will not grant, create or
permit to exist, any Lien upon the Collateral, or any proceeds thereof, in
favor of any third party (other than Permitted Liens).

 

6.4                               No
Conflict.

 

The execution and
delivery by such Borrower of this Credit Agreement and by the Credit Parties of
each of the other Credit Documents executed and delivered in connection
herewith and the performance of the obligations of such Credit Party hereunder
and thereunder, as applicable, and the consummation
by such Credit Party of the transactions contemplated hereby and thereby: (i) are within the corporate or other organizational, as the
case may be, powers of such Credit Party; (ii) are duly authorized by the Board
of Directors or similar managing body of such Credit Party; (iii) are not in
contravention of the terms of the organizational documents of such Credit Party
or of any material indenture, agreement, mortgage, deed of trust, loan
agreement, credit agreement or other material agreement or instrument to which
such Credit Party is a party or by which such Credit Party or  its material properties are bound;
(iv) do not require the consent, registration or approval of any
Governmental Authority or any other Person (except such as have been duly obtained,
made or given, and are in full force and effect); (v) do not contravene any
statute, law, ordinance regulation, rule, order or other governmental
restriction applicable to or binding upon such Credit Party; and (vi) will not,
except as contemplated herein for the benefit of the Agent on behalf of the
Lenders, result in the imposition of any Liens (other than Permitted Liens)
upon any property of such Credit Party under any existing indenture, mortgage,
deed of trust, loan or credit agreement or other material agreement or
instrument to which such Credit Party is a party or by which it or any of its
property may be bound or affected.

 

6.5                               Enforceability.

 

The Credit Agreement and
all of the other Credit Documents, as applicable, are the legal, valid and
binding obligations of such Credit Party, and with respect to those Credit
Documents executed and delivered by any other Restricted Subsidiary, of each
such other Restricted Subsidiary, and are enforceable against such Credit Party
and such other Restricted Subsidiaries, as the case may be, in accordance with
their terms except as such enforceability may be limited by (i) the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights
generally and (ii) general principles of equity.

 

6.6                               Financial
Data; Material Adverse Change.

 

(a)                                  The
Borrower has furnished to the Lenders the following financial statements (the “Financials”):  (i) the most recent
10-K filed with the SEC prior to the Closing Date (ii) the most recent 10-Q
filed with the SEC prior to the Closing Date (iii) an unaudited
opening consolidated balance sheet of the Borrower dated June 30,
2004.  The Financials referred to in the
foregoing clauses (i) and (ii) are and the historical
financial statements to be furnished to the Lenders in accordance with Section 7.1
will be in accordance with the books and records of the Borrower and fairly present the financial condition of the Borrower
and each of the Credit Parties at the dates thereof and the

 

69

 

results of
operations for the periods indicated (subject, in the case of unaudited financial statements, to normal year-end
adjustments), and such financial statements have been and will be prepared in
conformity with GAAP consistently applied throughout
the periods involved, except as provided in Section 7.1(c).

 

(b)                                 Since
the date of the Financials, there have been no changes in the condition,
financial or otherwise, of the Borrower or any of the Credit Parties as shown
on the balance sheets of the Borrower and each of the Credit Parties, except (i) as contemplated herein and (ii) for changes in the
ordinary course of business (none of which individually or in the aggregate
constitutes a Material Adverse Change).

 

6.7                               Locations
of Offices and Records.

 

The Credit Parties’
states of domicile, principal places of business and chief executive offices
are set forth in Schedule 6.7, and the books and records of the
Credit Parties and all chattel paper and all records of accounts are located at
the principal places of business and chief executive offices of the Credit
Parties.  Schedule 6.7 is a
true, correct and complete list of (i) the address of
the chief executive offices of the Credit Parties and each of their Restricted
Subsidiaries and (ii) the address of all offices where records and books of
account of the Credit Parties and each of their Restricted Subsidiaries are
kept.

 

6.8                               Fictitious
Business Names.

 

No Credit Party has used
any corporate or fictitious name during the five (5) years preceding the date
hereof, other than the corporate name shown on its or such Credit Party’s
articles or certificate of incorporation or formation or as set forth on Schedule 6.8.

 

6.9                               Subsidiaries.

 

The only direct or
indirect Subsidiaries of the Borrower are those listed on Schedule 6.9,
which identifies those that are Restricted Subsidiaries and those that are
Unrestricted Subsidiaries.  The Persons
identified on Schedule 6.9 are the record and beneficial owners of
all of the shares of Capital Stock of each of the Persons listed on Schedule 6.9
as being owned by thereby, there are no proxies, irrevocable or otherwise, with
respect to such shares, and no equity securities of any of any of such Persons
are or may become required to be issued by reason of any options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into or exchangeable for,
shares of any Capital Stock of any such Person, and there are no contracts,
commitments, understandings or arrangements by which any such Person is or may
become bound to issue additional shares of its Capital Stock or securities
convertible into or exchangeable for such shares.  All of such shares are owned by such Persons
in Restricted Subsidiaries are free and clear of any Liens other than Permitted
Liens.

 

6.10                        No
Judgments or Litigation.

 

Except as set forth on Schedule 6.10,
no judgments, orders, writs or decrees are outstanding against such Credit
Party or any of its Restricted Subsidiaries nor is there now pending or, to the
best of such Credit Party’s knowledge after due inquiry, threatened any
litigation, contested claim, investigation, arbitration, or governmental
proceeding by or against

 

70

 

such
Credit Party or any of its Restricted Subsidiaries except judgments and pending
or threatened litigation, contested claims, investigations, arbitrations and
governmental proceedings which could not reasonably be expected to have a
Material Adverse Effect.

 

6.11                        No
Defaults.

 

Neither such Credit Party
nor any of its Restricted Subsidiaries is in default under any term of any
indenture, contract, lease, agreement, instrument or other commitment to which
any of them is a party or by which any of them is bound which default has had
or could be reasonably expected to have a Material Adverse Effect.  Such Credit Party knows of no dispute
regarding any indenture, contract, lease, agreement, instrument or other
commitment which could reasonably be expected to have a Material Adverse
Effect.

 

6.12                        No
Employee Disputes.

 

There are no
controversies pending or, to the best of such Credit Party’s knowledge after
diligent inquiry, threatened between such Credit Party or any of its Restricted
Subsidiaries and any of their respective employees, other than those arising in
the ordinary course of business which could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

6.13                        Compliance
with Law.

 

Neither such Credit Party
nor any of its Restricted Subsidiaries has violated or failed to comply with
any statute, law, ordinance, regulation, rule or order of any foreign, federal,
state or local government, or any other Governmental Authority or any self
regulatory organization, or any judgment, decree or order of any court,
applicable to its business or operations except where the aggregate of all such
violations or failures to comply could not reasonably be expected to have a
Material Adverse Effect.  The conduct of
the business of such Credit Party and each of its Restricted Subsidiaries is in
conformity with all securities, commodities, energy, public utility, zoning,
building code, health, OSHA and environmental
requirements and all other foreign, federal, state and local governmental and
regulatory requirements and requirements of any self regulatory organizations,
except where such non-conformities could not reasonably be expected to have a
Material Adverse Effect.  Neither such
Credit Party nor any of its Restricted Subsidiaries has received any notice to
the effect that, or otherwise been advised that, it is not in compliance with,
and neither such Credit Party nor any of its Restricted Subsidiaries has any
reason to anticipate that any currently existing circumstances are likely to
result in the violation of any such statute, law, ordinance, regulation, rule,
judgment, decree or order which failure or violation could reasonably be
expected to have a Material Adverse Effect.

 

6.14                        ERISA.

 

None of such Credit
Parties or any of their Restricted Subsidiaries or the General Partner or any
of the ERISA Affiliates maintains or contributes to
any Benefit Plan other than those listed on Schedule 6.14. Each
Benefit Plan has been and is being maintained and funded in accordance with its
terms and in compliance in all material respects with all provisions of ERISA and the Internal Revenue Code applicable
thereto.  Such Credit Party, each of its
Restricted Subsidiaries and the General Partner and each of its ERISA Affiliates has fulfilled all obligations related to
the minimum funding standards of ERISA and the
Internal Revenue Code for each

 

71

 

Benefit Plan, is in
compliance in all material respects with the currently applicable provisions of
ERISA and of the Internal Revenue Code and has not
incurred any liability (other than routine liability for premiums) under Title
IV of ERISA. 
No Termination Event has occurred nor has any other event occurred that
may result in such a Termination Event. 
No event or events have occurred in connection with which such Credit
Parties or any of its Restricted Subsidiaries or the General Partner or any of
the ERISA Affiliates, any fiduciary of a Benefit Plan
or any Benefit Plan, directly or indirectly, would be subject to any material
liability, individually or in the aggregate, under ERISA,
the Internal Revenue Code or any other law, regulation or governmental order or
under any agreement, instrument, statute, rule of law or regulation pursuant to
or under which any such entity has agreed to indemnify or is required to
indemnify any person against liability incurred under, or for a violation or
failure to satisfy the requirements of, any such statute, regulation or order.

 

6.15                        Compliance
with Environmental Laws.

 

Except as disclosed on Schedule 6.15,
and except where the aggregate of all such violations or failures to comply
could not reasonably be expected to have a Material Adverse Effect (a) the
operations of such Credit Party and each of its Restricted Subsidiaries comply
with all applicable federal, state or local environmental, health and safety
statutes, regulations, or ordinances, and (b) none of the operations of such
Credit Party or any of its Restricted Subsidiaries is the subject of any
judicial or administrative proceeding alleging the violation of any federal,
state or local environmental, health or safety statute, regulation, direction,
ordinance, criteria or guidelines. Except as disclosed on Schedule 6.15
and except as could not reasonably be expected to have a Material Adverse
Effect, to the knowledge of each Credit Party and any of its Restricted
Subsidiaries, none of the operations of such Credit Party or any of its
Restricted Subsidiaries is the subject of any federal or state investigation
evaluating whether such Credit Party or any of its Restricted Subsidiaries
disposed any hazardous or toxic waste, substance or constituent or other
substance at any site that may require remedial action, or any federal or state
investigation evaluating whether any remedial action is needed to respond to a
release of any hazardous or toxic waste, substance or constituent, or other
substance into the environment.  Except
as disclosed on Schedule 6.15 and except for any notices required
in connection with any environmental permits or annual reporting requirements
in the ordinary course of business, neither such Credit Party nor any of its
Restricted Subsidiaries have filed any notice under any federal or state law
indicating past or present treatment, storage or disposal of a hazardous waste
or reporting a spill or release of a hazardous or toxic waste, substance or
constituent, or other substance into the environment.  Except as disclosed on Schedule 6.15
and except as could not reasonably be expected to have a Material Adverse
Effect, neither such Credit Party nor any of its Restricted Subsidiaries have
any contingent liability of which such Credit Party has knowledge in connection
with any release of any hazardous or toxic waste, substance or constituent, or
other substance into the environment, nor has such Credit Party or any of its
Restricted Subsidiaries received any notice or letter advising it of potential
liability arising from the disposal of any hazardous or toxic waste, substance
or constituent or other substance into the environment.

 

6.16                        Use
of Proceeds.

 

All proceeds of the Loans
will be used only in accordance with Section 7.13.

 

72

 

6.17                        Intellectual
Property.

 

Such Credit Party and
each of its Restricted Subsidiaries possesses adequate assets, licenses,
patents, patent applications, copyrights, service marks, trademarks and tradenames to continue to conduct its business as
heretofore conducted by it.  Schedule 6.17
sets forth (a) all of the federal, state and foreign registrations of
trademarks, service marks and other marks, trade names or other trade rights of
such Credit Party and its Restricted Subsidiaries, and all pending applications
for any such registrations, (b) all of the patents and copyrights of such
Credit Party and its Restricted Subsidiaries and all pending applications therefor and (c) all other trademarks, service marks and
other marks, trade names and other trade rights used by such Credit Party or
any of its Restricted Subsidiaries in connection with their businesses, in each
case necessary for the conduct of such Credit Party’s and such Credit Party’s
Restricted Subsidiaries’ business (collectively, the “Proprietary Rights”).  Such Credit Party and its Restricted
Subsidiaries are collectively the owners of each of the trademarks listed on Schedule 6.17
as indicated on such schedule, and no other Person has the right to use any of
such marks in commerce either in the identical form or in such near resemblance
thereto as may be likely to cause confusion or to cause mistake or to
deceive.  Each of the trademarks listed
on Schedule 6.17 is a federally registered trademark of such Credit
Party or its Restricted Subsidiaries having the registration number and issue
date set forth on Schedule 6.17. 
The Proprietary Rights listed on Schedule 6.17 are all those
used in the businesses of such Credit Party and its Restricted
Subsidiaries.  Except as disclosed on Schedule 6.17,
no person has a right to receive any royalty or similar payment in respect of
any Proprietary Rights pursuant to any contractual arrangements entered into by
such Credit Party, or any of its Restricted Subsidiaries and no person
otherwise has a right to receive any royalty or similar payment in respect of
any such Proprietary Rights except as disclosed on Schedule 6.17.  Neither such Credit Party nor any of its
Restricted Subsidiaries has granted any license or sold or otherwise
transferred any interest in any of the Proprietary Rights to any other
person.  The use of each of the
Proprietary Rights by such Credit Party and its Restricted Subsidiaries is not
infringing upon or otherwise violating the rights of any third party in or to
such Proprietary Rights, and no proceeding has been instituted against or
notice received by such Credit Party or any of its Restricted Subsidiaries that
are presently outstanding alleging that the use of any of the Proprietary
Rights infringes upon or otherwise violates the rights of any third party in or
to any of the Proprietary Rights. 
Neither such Credit Party nor any of its Restricted Subsidiaries have
given notice to any Person that it is infringing on any of the Proprietary
Rights and to the best of such Credit Party’s knowledge, no Person is
infringing on any of the Proprietary Rights. 
All of the Proprietary Rights of such Credit Party and its Restricted
Subsidiaries are valid and enforceable rights of such Credit Party and its
Restricted Subsidiaries and will not cease to be valid and in full force and effect
by reason of the execution and delivery of this Credit Agreement or the Credit
Documents or the consummation of the transactions contemplated hereby or
thereby.

 

6.18                        Licenses
and Permits.

 

Such Credit Party and
each of its Restricted Subsidiaries have obtained and hold in full force and
effect, all material franchises, licenses, leases, permits, certificates,
authorizations, qualifications, easements, rights of way and other rights and
approvals which are necessary for the operation of their businesses as
presently conducted and as proposed to be conducted and whose absence or
failure to obtain could reasonably be expected to have a Material Adverse
Effect.  Neither of such Credit Party nor
any of its Restricted Subsidiaries is in violation of the

 

73

 

terms
of any such franchise, license, lease, permit, certificate, authorization,
qualification, easement, right of way, right or approval in any such case which
could reasonably be expected to have a Material Adverse Effect.

 

6.19                        Title
to Property.

 

Such Credit Party has to
its best knowledge (i) defensible fee simple title to
or valid leasehold interests in all of its real property, including, without
limitation, the Real Estate (all such real property and the nature of such
Credit Party’s or any of its Restricted Subsidiary’s interest therein is
disclosed on Schedule 6.19, as it may be updated from time to time
pursuant to Section 7.9,) and (ii) defensible title to all of its
other property (including without limitation, all real and other property in
each case as reflected in the Financial Statements delivered to the Agent
hereunder), other than properties disposed of in the ordinary course of
business or in any manner otherwise permitted under this Credit Agreement since
the date of the most recent audited consolidated balance sheet of such Credit
Party, and in each case subject to no Liens other than Permitted Liens.  Such Credit Party and its Restricted
Subsidiaries, to the best of their respective knowledge, enjoy peaceful and
undisturbed possession of all its real property, including, without limitation,
the Real Estate, and there is no pending or, to the best of their knowledge,
threatened condemnation proceeding relating to any such real property.    No
material default exists under (i) any Lease on any
property on which is Mortgage is granted, or (ii) any other Lease, to the
extent such default would reasonably be expected to have a Material Adverse
Effect.  All of the Structures and other
tangible assets owned, leased or used by such Credit Party or any of its
Restricted Subsidiaries in the conduct of their respective businesses , to the
best of their respective knowledge, are (a) insured to the extent and in a
manner required by Section 7.10, (b) structurally sound with no known
defects which have or could reasonably be expected to have a Material Adverse
Effect, (c) in good operating condition and repair, subject to ordinary wear
and tear, (d) not in need of maintenance or repair except for ordinary, routine
maintenance and repair the cost of which is immaterial and except to the extent
failure to so maintain and repair could not reasonably be expected to have a
Material Adverse Effect, (e) sufficient for the operation of the
businesses of such Credit Party and its Restricted Subsidiaries as currently
conducted, except to the extent failure to be so sufficient could not
reasonably be expected to have a Material Adverse Effect and (f) in conformity
with all applicable laws, ordinances, orders, regulations and other
requirements (including applicable zoning, environmental, motor vehicle safety,
occupational safety and health laws and regulations) relating thereto, except
where the failure to conform could not reasonably be expected to have a
Material Adverse Effect.

 

6.20                        Labor
Matters.

 

Neither such Credit Party
nor any of its Restricted Subsidiaries is engaged in any unfair labor practice
which could reasonably be expected to have a Material Adverse Effect.  There is (a) no material unfair labor practice
complaint pending against such Credit Party or any of its Restricted
Subsidiaries or, to the best knowledge of such Credit Party, threatened against
any of them, before the National Labor Relations Board, and no grievance or
arbitration proceeding arising out of or under collective bargaining agreements
that has or could reasonably be expected to have a Material Adverse Effect is
so pending against such Credit Party or any of its Restricted Subsidiaries or,
to the best knowledge of such Credit Party, threatened against any of them, (b)
no strike, labor dispute, slowdown or stoppage pending against either of such
Credit Party or any

 

74

 

of
its Restricted Subsidiaries or, to the best knowledge of such Credit Party,
threatened against any of them, and (c) no union representation questions with
respect to the employees of such Credit Party or any Restricted Subsidiaries
and no union organizing activities.

 

6.21                        Investment
Company, Etc.

 

Neither such Credit Party
nor any of its Restricted Subsidiaries is (a) an “investment company” or a
company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, (b) a “holding company” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, as amended, or (c) subject to any other
law which regulates or restricts its ability to borrow money or to consummate
the transactions contemplated by this Credit Agreement or the other Credit
Documents or to perform its obligations hereunder or thereunder.

 

6.22                        Margin
Security.

 

Such Credit Party does
not own any margin stock, other than common units in Partners acquired in
connection with the IPO, and no portion of the proceeds of any Loans or Letters
of Credit shall be used by the Borrower for the purpose of purchasing or
carrying any “margin stock” (as defined in Regulation U of the Board of
Governors of the Federal Reserve System) or for any other purpose which
violates the provisions or Regulation U, of said Board of Governors or for any
other purpose in violation of any applicable statute or regulation, or of the
terms and conditions of this Credit Agreement.

 

6.23                        No
Event of Default.

 

No Default or Event of
Default has occurred and is continuing.

 

6.24                        Taxes
and Tax Returns.

 

Each Credit Party has
filed, or caused to be filed, all material tax returns (federal, state, local
and foreign, including relating to excise taxes) required to be filed and paid
all amounts of taxes shown thereon to be due (including interest and penalties)
and has paid all other material taxes, fees, assessments and other governmental
charges (including mortgage recording taxes, documentary stamp taxes and
intangibles taxes) owing by it, except for such taxes (a) that are not yet
delinquent or (b) that are being appropriately contested in good faith, and
against which adequate reserves are being maintained in accordance with GAAP.  None of the
Credit Parties is aware of any proposed material tax assessments against it or
any other Credit Party.

 

6.25                        No
Other Indebtedness.

 

Such Credit Party has no
Indebtedness that is senior, pari  passu
or subordinated in right of payment to their Indebtedness to the Lenders
hereunder, except for Permitted Indebtedness.

 

6.26                        Status
of Accounts.

 

Each Account is based on
an actual and bona fide sale and delivery of goods or rendition of services to
customers, made by such Credit Party in the ordinary course of its business;
the

 

75

 

goods and inventory being
sold and the Accounts created are its exclusive property and are not and shall
not be subject to any Lien, consignment arrangement, encumbrance, security
interest or financing statement whatsoever, other than the Permitted Liens; and
such Credit Party’s customers have accepted the goods or services, owe and are
obligated to pay the full amounts stated in the invoices according to their
terms, without any dispute, offset, defense, counterclaim or contra that could
reasonably be expected to have, when aggregated with any such other disputes,
offsets, defenses, counterclaims or contras, a Material Adverse Effect.  Such Credit Party confirms to the Lenders
that any and all taxes or fees relating to its business, its sales, the
Accounts or the goods relating thereto, are its sole responsibility and that
same will be paid by such Credit Party when due (unless duly contested and adequately
reserved for).

 

6.27                        Material
Contracts.

 

Schedule 6.27
sets forth a true, correct and complete list of all the Material Contracts
currently in effect as of the Closing Date. 
All of the Material Contracts are in full force and effect, and no
material defaults currently exist thereunder.

 

6.28                        Survival
of Representations.

 

All representations made
by such Credit Party in this Credit Agreement (including by incorporation by
reference in the Guaranty Agreement) and in any other Credit Document shall survive
the execution and delivery hereof and thereof.

 

6.29                        Affiliate
Transactions.

 

Except as set forth on Schedule 6.29,
neither such Credit Party nor any of its Restricted Subsidiaries is a party to
or bound by any agreement or arrangement (whether oral or written) to which any
Affiliate of such Credit Party or any of its Restricted Subsidiaries is a party
except (a) in the ordinary course of and pursuant to the reasonable
requirements of such Credit Party’s or such Restricted Subsidiary’s business
and (b) upon fair and reasonable terms no less favorable to such Credit Party
and such Restricted Subsidiary than it could obtain in a comparable arm’s-length
transaction with an unaffiliated Person.

 

6.30                        Accuracy
and Completeness of Information.

 

All factual information
heretofore, contemporaneously or hereafter furnished by or on behalf of the
Credit Parties or any of their respective Restricted Subsidiaries in writing to
the Agent, any Lender, or the Independent Accountant for purposes of or in
connection with this Credit Agreement or any Credit Documents, or any
transaction contemplated hereby or thereby is or will be true and accurate in
all material respects on the date as of which such information is dated or
certified and not incomplete by omitting to state any material fact necessary
to make such information not misleading at such time.

 

6.31                        Anti-Terrorism
Laws.

 

(a)                                  General.  None of the Credit Parties or their
Affiliates is knowingly in violation of any Anti-Terrorism Law or engages in or
conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any Anti-Terrorism Law.

 

76

 

(b)                                 Executive
Order No. 13224.  None of the Credit
Party or their Affiliates is, to the best of their knowledge, any of the
following (each a “Blocked Person”):

 

(i)                                     a Person owned or controlled by, or acting for or on behalf
of, any Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

 

(ii)                                  a
Person or entity with which any bank or other financial institution is
prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law;

 

(iii)                               a Person or entity that commits, threatens or conspires to
commit or supports “terrorism” as defined in Executive Order No. 13224;

 

(iv)                              a
Person or entity that is named as a “specially designated national” on the most
current list published by the U.S. Treasury Department Office of Foreign Asset
Control at its official website or any replacement website or other replacement
official publication of such list; or

 

(v)                                 a Person or entity who is affiliated with a Person or entity
listed above.

 

(c)                                  None
of the Credit Parties or their Affiliates knowingly (i)
conducts any business or engages in making or receiving any contribution of
funds, goods or services to or for the benefit of any Blocked Person or (ii)
deals in, or otherwise engages in any transaction relating to, any property or
interests in property blocked pursuant to Executive Order No. 13224.

 

6.32                        Deposit
Accounts and Commodities Accounts.

 

As of
the Closing Date, none of the Credit Parties has any checking, savings or other
accounts at any bank or other financial institution, or any commodities accounts
with any commodities intermediary, or any other account where money is or may
be deposited or maintained with any Person that is not described on Schedule 6.32.  Schedule 6.32 accurately sets
forth the purpose for which each such deposit account is maintained.

 

6.33                        Force
Majeure.

 

None of any Credit
Parties’ business is suffering from effects of fire, accident, strike, drought,
storm, earthquake, embargo, tornado, hurricane, act of
God, acts of a public enemy or other casualty that would reasonably be likely
to have a Material Adverse Effect.

 

ARTICLE VII

AFFIRMATIVE COVENANTS

 

Until all of the Credit
and Collateral Termination Events have occurred, the Borrower and (by execution
and delivery of the Guaranty Agreement or of a joinder
thereto and

 

77

 

incorporation
by reference therein) each Guarantor agrees that, unless the Required Lenders
shall have otherwise consented in writing:

 

7.1                               Financial
Information.

 

The Borrower will furnish
to the Agent on behalf of the Lenders the following information within the
following time periods:

 

(a)                                  within
ninety (90) days after the close of the fiscal year of the Borrower, (i) the audited consolidated balance sheets and statements
of income and retained earnings and of changes in cash flow of the Borrower and
its consolidated Subsidiaries, for such year, each setting forth in comparative
form the corresponding figures for the preceding year, prepared in accordance
with generally accepted accounting principles, and accompanied by a report and
unqualified opinion of KPMG LLP (which shall not be
limited as to the scope of the audit or qualified as to the status of the
Credit Parties as a going concern) or other Independent Accountant selected by
the Borrower and approved by the Agent; provided, that so long as the
Borrower is required to file and has timely filed a 10-K with the SEC, such
filing will satisfy this covenant and (ii) 
the unaudited consolidated balance sheets and
statements of income and retained earnings and of changes in cash flow of the
Borrower and its consolidated Restricted Subsidiaries, for such year, each
setting forth in comparative form the corresponding figures for the preceding
year, prepared in accordance with GAAP, and certified
by an Executive Officer;

 

(b)                                 within
forty-five (45) days after the end of each fiscal quarter of the Borrower other
than the final fiscal quarter of each fiscal year, (i)
unaudited consolidated financial statements of the
Borrower and its consolidated Subsidiaries as of the end of such period and for
such period then ended and for the period from the beginning of the current
fiscal year to the end of such period, setting forth in comparative form the
corresponding figures for the comparable period in the preceding fiscal year,
prepared in accordance with generally accepted accounting principles (except
that such quarterly statements need not include footnotes) and certified by an
Executive Officer; provided, that so long as the Borrower is required to
file and has timely filed a 10-Q with the SEC, such filing will satisfy this
covenant and (ii) unaudited consolidated financial
statements of the Borrower and its consolidated Restricted Subsidiaries as of
the end of such period and for such period then ended and for the period from
the beginning of the current fiscal year to the end of such period, setting
forth in comparative form the corresponding figures for the comparable period
in the preceding fiscal year, prepared in accordance with GAAP
(except that such quarterly statements need not include footnotes), and
certified by an Executive Officer;

 

(c)                                  within
forty five  (45) days after the end of
each month other than the final month of each fiscal quarter, which shall be
submitted within five (5) days after the Borrower submits its Form 10-Q for
such quarter with the Securities and Exchange Commission, unaudited
consolidated financial statements of the Borrower and its consolidated
Restricted Subsidiaries as of the end of such period and for such period then
ended and for the period from the beginning of the current fiscal year to the
end of such period, prepared in accordance with GAAP  (except that discretionary inventory held for

 

78

 

immediate sale or
exchange shall be deemed to be carried at fair value and base, line fill and
tank bottom inventory shall be deemed to be carried at the lower of cost or
market as determined only on a quarterly basis) and present fairly, in all
material respects, on a summary basis the financial position of the Borrower
and its consolidated Restricted Subsidiaries at the dates thereof and the
results of their operations for the periods covered thereby, subject only to
normal year-end audit adjustments and the addition of footnotes and certified by
an Executive Officer;

 

(d)                                 at
the time of delivery of each quarterly and annual statement, a Compliance
Certificate stating that such officer has caused this Credit Agreement to be
reviewed and has no knowledge of any default by the Borrower in the performance
or observance of any of the provisions of this Credit Agreement, during, or at
the end of, as applicable, such quarter or year, or, if such officer has such
knowledge, specifying each default and the nature thereof, and showing
compliance by the Borrower as of the date of such statement with the financial
covenant set forth in Section 8.1, and calculations for such
financial covenant shall be included, even if such financial covenant is not
then in effect pursuant to the terms thereof, and the other applicable
covenants set forth in Exhibit J;

 

(e)                                  The
Borrowing Base will be reported in a Borrowing Base Certificate furnished to
the Agent according to the following:

 

(i)                                     if
Excess Availability is equal to or greater than $75,000,000, Borrowing Base
Certificates will be will be completed as of the last day of the calendar month
and delivered within 5 Business Days thereafter, with a Borrowing Base
Certificate updated from the most recently furnished complete Borrowing Base
Certificate as to gross accounts receivable and inventory to be prepared as of
the last Business Day of each week and delivered within 2 Business Days
thereafter, or

 

(ii)                                  if
Excess Availability is less than $75,000,000, Borrowing Base Certificates will
be delivered twice monthly, completed as of the closest Business Day to each of
the 15th day (or such other day, not later than the 20th, on which the Borrower
internally adjusts its basis for inventory) and the last day of each calendar
month and delivered within 5 Business Days thereafter, with a Borrowing Base
Certificate updated from the most recently furnished complete Borrowing Base
Certificate as to gross accounts receivable and inventory to be prepared as of
the last Business Day of each week and delivered within 2 Business Days thereafter;
provided, that if Excess Availability is at least $75,000,000 for 30
consecutive days, such fact may be reported and Borrowing Base Certificates and
updated Borrowing Base Certificates showing gross accounts receivable and
inventory thereafter shall again be reported pursuant to clause (i) above unless and until Excess Availability again goes
below $75,000,000.

 

Notwithstanding the foregoing, (i)
the Borrower may submit additional Borrowing Base Certificates or updates
thereof at any time during a calendar month, and they shall be taken into
account in determining Average Excess Borrowing Base

 

79

 

Availability and Excess
Availability and (ii) the Agent will reserve the right to require that
Borrowing Base Certificates and such updates thereof be furnished on a more
frequent basis, in its reasonable discretion. 
In addition, on or before the 15th day of each month (or if such day is
not a Business Day, then on the next succeeding Business Day), the Borrower
shall furnish a written report to the Agent setting forth the accounts
receivable aged trial balance at the immediately preceding month end for each
account debtor, aged by due date, which aging reports shall indicate which
Accounts are current, up to 30, 31 to 60 and over 60 days past due and any
other documentation reasonably required by the Agent as back-up.  The Agent may, but shall not be required to,
rely on each Borrowing Base Certificate delivered hereunder as accurately
setting forth the available Borrowing Base for all purposes of this Credit
Agreement until such time as a new Borrowing Base Certificate is delivered to
the Agent in accordance herewith; Borrowing Base Certificates may be prepared
and submitted to the Lenders on a more frequent basis than weekly, provided
that such certificate complies with the requirements set forth elsewhere
herein.  The Agent shall send copies of
the Borrowing Base Certificates and updates received by it pursuant to the
foregoing to the Lenders; provided, that any Lender may request copies
thereof from the Borrower;

 

(f)                                    promptly upon receipt thereof, copies of all management
letters which are submitted to the Borrower by its Independent Accountant in
connection with any annual or interim audit of the books of the Borrower made
by such accountants;

 

(g)                                 as
soon as practicable but, in any event, within ten (10) Business Days after the
issuance thereof, to the extent not electronically filed and publicly
available, copies of such other financial statements and reports as the
Borrower shall send to its stockholders as such, and copies of all regular and
periodic reports which the Borrower may be required to file with the Securities
and Exchange Commission or any similar or corresponding governmental
commission, department or agency substituted therefor,
or any similar or corresponding Governmental Authority;

 

(h)                                 no
later than thirty (30) days prior to the commencement of each fiscal year
during each year when this Credit Agreement is in effect, an annual forecast setting
forth the quarterly budget for each quarter of such fiscal year in a form
consistent with the annual forecast provided to the Agent prior to the Closing
Date for the period ending on June 30, 2005;

 

(i)                                     promptly
upon receipt thereof, copies of all notices delivered to the Borrower or sent
by the Borrower with respect to Subordinated Debt, including, without
limitation, any notice of default (the Borrower expressly agreeing to furnish
all such notices electronically );

 

(j)                                     promptly
and in any event within five (5) Business Days after becoming aware of the
occurrence of a Default or Event of Default, a certificate of the chief
executive officer or chief financial officer of the Borrower specifying the
nature thereof and the Credit Parties’ proposed response thereto, each in
reasonable detail; and

 

(k)                                  with reasonable promptness, such other data as the Agent may
reasonably request.

 

80

 

7.2                               Mortgaged
Real Estate.

 

In consultation with the
Borrower, the Agent has identified the Initially Selected Real Estate and the
items that will comprise the Real Property Documentation related thereto has
been or shall be obtained and furnished to the Agent for its review as soon as
reasonably possible. On the Original Closing Date, the Agent, for the benefit
of the Lenders, received a Mortgage on each parcel or tract of the Initially
Selected Real Estate that constitutes Accepted Real Estate on such date,
conveying a first priority Lien thereon, subject to no other Liens other than
Permitted Liens.  Upon receipt of all
Approved Appraisals for the Initially Selected Real Estate, if the aggregate
Net Orderly Liquidation Value of the Initially Selected Real Estate is less
than the Minimum Real Estate Liquidation Value, the Agent shall identify and
select,  Additionally
Selected Real Estate in such a manner as to minimize legal fees, mortgage
taxes, title insurance and other applicable costs and charges. The Additionally
Selected Real Estate shall then be appraised according to the foregoing, and
such process shall be continued until terminals and related real estate having
Approved Appraisals showing appraised aggregate Net Orderly Liquidation Value
of not less than the Minimum Real Estate Liquidation Value have been identified.
The items that will comprise the Real Property Documentation for each such
parcel or tract shall be obtained and delivered as soon as reasonably
practicable after such parcel or tract has been identified as part of the
Initially Selected Real Estate and Additionally Selected Real Estate pursuant
to the foregoing process, and as soon as each such Initially Selected Real
Estate and Additionally Selected Real Estate has become Accepted Real Estate,
the Agent, for the benefit of the Lenders, shall receive a Mortgage on such
parcel or tract, conveying a first priority Lien thereon, subject to no other
Liens other than  Permitted Liens.  In the event any Credit Party desires to
substitute any other real estate property for existing Mortgaged Real Estate,
the Borrower will so notify the Agent and, if the Agent receives Real Property
Documentation reasonably satisfactory to it with respect thereto, a Mortgage
shall be executed and delivered thereon in favor of the Agent, for the benefit
of the Lenders, and such property shall become Mortgaged Real Estate, and the
property for which such property was substituted shall be released by the
Agent.   In addition to the foregoing,
the Agent shall release Mortgaged Real Estate to be transferred to Partners (or
its designees, including Operating Company or other MLP
Entities) in connection with the IPO or pursuant to the MLP
Omnibus Agreement in accordance with and subject to the provisions of Section 9.3(e)
and (f), provided, that a reserve shall be established under
clause (k) of the definition of Borrowing Base.

 

7.3                               Corporate
Existence.

 

Each Credit Party and
each of its Restricted Subsidiaries: (a) will (i)
maintain their current corporate or other organizational existence, except as
permitted by Section 9.4, (ii) maintain in full force and effect all
material licenses, bonds, franchise, leases, trademarks and qualifications to
do business, except as could not reasonably be expected to have a Material
Adverse Effect; (b) will obtain or maintain patents, contracts and other rights
necessary to the  conduct of their
businesses; (c) will limit their operations to, the same general lines of
business as that conducted by them as of the Closing Date and; (d) will comply
with all applicable laws and regulations of any federal, state or local
Governmental Authority, except where noncompliance could not reasonably be
expected to have a Material Adverse Effect.

 

81

 

7.4                               ERISA.

 

The Credit Party will
deliver to the Agent, at the Credit Party’ expense, the following information
at the times specified below:

 

(a)                                  within
ten (10) Business Days after any Credit Party or any of its Restricted
Subsidiaries or the General Partner or any of the ERISA
Affiliates knows or has reason to know that a Termination Event has occurred, a
written statement of the chief financial officer of the Borrower describing
such Termination Event and the action, if any, which such Credit Party or other
such entities have taken, are taking or propose to take with respect thereto,
and when known, any action taken or threatened by the Internal Revenue Service,
DOL or PBGC with respect
thereto;

 

(b)                                 within
ten (10) Business Days after any Credit Party or any of its Restricted
Subsidiaries or the General Partner or any of the ERISA
Affiliates knows or  has reason to know
that a prohibited transaction (as defined in Section 406 of ERISA and Section 4975 of the Internal Revenue
Code) has occurred, a statement of the chief financial officer of the Borrower
describing such transaction and the action which such Credit Party or other
such entities have taken, are taking or propose to take with respect thereto;

 

(c)                                  within thirty (30) Business Days after the filing thereof
with the DOL, Internal Revenue Service or PBGC, copies of each annual report (form 5500 series),
including all schedules and attachments thereto, filed with respect to each
Benefit Plan;

 

(d)                                 within
thirty (30) Business Days after receipt by any Credit Party or any of its
Restricted Subsidiaries or the General Partner or any of the ERISA Affiliates of each actuarial report for any Benefit
Plan or Multiemployer Plan and each annual report for any Multiemployer Plan,
copies of each such report;

 

(e)                                  within
three (3) Business Days after the filing thereof with the Internal Revenue
Service, a copy of each funding waiver request filed with respect to any
Benefit Plan and all communications received by any Credit Party or any of its
Restricted Subsidiaries or the General Partner or any of the ERISA Affiliates with respect to such request;

 

(f)                                    within
ten (10) Business Days upon the occurrence thereof, notification of any
material increase in the benefits of any existing Plan or the establishment of
any new Plan or the commencement of contributions to any Plan to which any Credit
Party or any of its Restricted Subsidiaries or the General Partner or any of
the ERISA Affiliates was not previously contributing;

 

(g)                                 within
three (3) Business Days after receipt by any Credit Party or any of its
Restricted Subsidiaries or the General Partner or any of the ERISA Affiliates of the PBGC’s
intention to terminate a Benefit Plan or to have a trustee appointed to
administer a Benefit Plan, copies of each such notice;

 

(h)                                 within
ten (10) Business Days after receipt by any Credit Party or any of its
Restricted Subsidiaries or the General Partner or any of the ERISA Affiliates of any

 

82

 

favorable
or unfavorable determination letter from the Internal Revenue Service regarding
the qualification of a Plan under Section 401(a) of the Internal
Revenue Code, copies of each such letter;

 

(i)                                     within
ten (10) Business Days after receipt by any Credit Party or any of its
Restricted Subsidiaries or the General Partner or any of the ERISA Affiliates of a notice regarding the imposition of
withdrawal liability, copies of each such notice;

 

(j)                                     within
ten (10) Business Days after any Credit Party or any of its Restricted
Subsidiaries or the General Partner or any of the ERISA
Affiliates fail to make a required installment or any other required payment
under Section 412 of the Internal Revenue Code on or before the due
date for such installment or payment, a notification of such failure; and

 

(k)                                  within
three (3) Business Days after any Credit Party or any of its Restricted
Subsidiaries or the General Partner or any of the ERISA
Affiliates knows (a) a Multiemployer Plan has been terminated, (b) the
administrator or plan sponsor of a Multiemployer Plan intends to terminate a
Multiemployer Plan, or (c) the PBGC has instituted or
will institute proceedings under Section 4042 of ERISA to terminate a Multiemployer Plan, a written
statement setting forth any such event or information.

 

For purposes of this Section 7.4,
any Credit Party or any of its Restricted Subsidiaries or the General Partner
or any of the ERISA Affiliates shall be deemed to
know all facts known by the administrator of any Plan of which such entity is
the plan sponsor.

 

The Credit Parties will
establish, maintain and operate all Plans to comply in all material respects
with the provisions of ERISA, the Internal Revenue
Code, and all other applicable laws, and the regulations and interpretations thereunder other than to the extent that the Credit Parties
are in good faith contesting by appropriate proceedings the validity or
implication of any such provision, law, rule, regulation or interpretation.

 

7.5                               Proceedings
or Adverse Changes.

 

The Credit Parties will
as soon as possible, and in any event within five (5) Business Days after any
Credit Party learns of the following, give written notice to the Agent of (i) any material proceeding(s) being instituted or
threatened in writing to be instituted by or against any Credit Party or any of
its Restricted Subsidiaries in any federal, state, local or foreign court or
before any commission or other regulatory body (federal, state, local or
foreign), if the amount involved is equal to or in excess of $10,000,000 and
(ii) any Material Adverse Change. 
Provision of such notice by the Credit Parties will not constitute a
waiver or excuse of any Default or Event of Default occurring as a result of
such changes or events.

 

7.6                               Environmental
Matters.

 

Each Credit Party will
conduct its business and the businesses of each of the Restricted Subsidiaries
so as to comply in all material respects with all applicable environmental
laws, regulations, orders and ordinances, in all jurisdictions in which any of
them is or may at any time be doing business including, without limitation,
environmental land use, occupational safety or health laws, regulations,
requirements or permits in all jurisdictions in which any of them is or

 

83

 

may at any time be
doing business, except to the extent that any Credit Party or any of its
Restricted Subsidiaries is contesting, in good faith by appropriate legal
proceedings, any such law, regulation, order or ordinance, or interpretation
thereof or application thereof; provided, further, that each Credit Party and each of
the Restricted Subsidiaries will comply with the order of any court or other
governmental body of the applicable jurisdiction relating to such laws unless
such Credit Party or Restricted Subsidiary shall currently be prosecuting an
appeal or proceedings for review and shall have secured a stay of enforcement
or execution or other arrangement postponing enforcement or execution pending
such appeal or proceedings for review. 
If any Credit Party or any of its Subsidiaries shall receive any notice
from a federal, state, or local agency that (a) any violation of any federal,
state or local environmental law, regulation, order or ordinance, may have been
committed or is about to be committed by such Credit Party or any of its
Restricted Subsidiaries, (b) any administrative or judicial complaint or order
has been filed or is about to be filed against such Credit Party or any of its
Restricted Subsidiaries alleging violations of any federal, state or local
environmental law, regulation, order, ordinance, or requiring such Credit Party
or any of its Restricted Subsidiaries to take any action in connection with the
release of toxic or hazardous substances into the environment or (c) alleging
that such Credit Party or any of its Restricted Subsidiaries may be liable or
responsible for costs associated with a response to or cleanup of a release of
a toxic or hazardous substance into the environment or any damages caused
thereby, and any Credit Party reasonably believes that such costs or damages
would likely be material, such Credit Party will provide the Agent with a copy
of such notice within fifteen (15) days after the receipt thereof by the
applicable Credit Party or any of its Restricted Subsidiaries.  Each Credit Party will promptly take all
actions necessary to prevent the imposition of any Liens on any of its
properties arising out of or related to any environmental matters except to the
extent such Liens that would not reasonably be expected to create an Event of
Default.

 

7.7                               Books
and Records; Inspection.

 

Each Credit Party will,
and will cause each of its Restricted Subsidiaries to, maintain books and
records pertaining to the Collateral in such detail, form and scope as is
consistent with good business practice. 
Each Credit Party agrees that the Agent or its agents may enter upon the
premises of each Credit Party or any of its Restricted Subsidiaries at any time
and from time to time, during normal business hours, and at any time at all on
and after the occurrence of an Event of Default, and which has not otherwise
been waived by the Agent, for the purpose of (a) enabling the Agent’s internal
auditors or outside third party designees to conduct periodic field
examinations at such Credit Party’s expense, (b) inspecting the Collateral,
(c) inspecting and/or copying (at such Credit Party’ expense) any and all
records pertaining thereto, (d) discussing the affairs, finances and business
of any Credit Party or with any officers, employees and directors of any Credit
Party with the Independent Accountant and (e) verifying Eligible Accounts
Receivable and/or Eligible Petroleum Inventory. 
The Lenders, in the reasonable discretion of the Agent, may accompany
the Agent at their sole expense in connection with the foregoing inspections.

 

The Agent expects to
conduct two (2) field examinations per year (or more frequently, if Excess
Availability is less than $100,000,000), but reserves the right, in its
reasonable discretion, to conduct a field examination at any time, or with less
frequency, upon reasonable notice to the Borrower.  Each Credit Party agrees to afford the Agent
thirty (30) days prior written notice of any change in its jurisdiction of
organization or the location of its chief executive office or place

 

84

 

of
business from the locations specified in Schedule 6.7, and to
execute in advance of such change, cause to be filed and/or delivered to the
Agent any financing statements or other documents required by the Agent, all in
form and substance reasonably satisfactory to the Agent.   Each Credit Party agrees to furnish the
Agent with such other information regarding its business affairs and financial
condition as the Agent may reasonably request from time to time.

 

7.8                               Collateral
Records.

 

Each Credit Party will,
and will cause each of its Restricted Subsidiaries to, execute and deliver to
the Agent, from time to time, for the Agent’s use in maintaining a record of
the Collateral, such written statements and schedules that are reasonably
available and as the Agent may reasonably require, including without limitation
those described in Section 7.1, designating, identifying or
describing the Collateral pledged to the Lenders hereunder.  Any Credit Party’s failure, however, to
promptly give the Agent such statements or schedules shall not affect, diminish,
modify or otherwise limit the Lenders’ security interests in the Collateral.
Such Credit Party agrees to maintain such books and records regarding Accounts
and the other Collateral as the Agent may reasonably require.

 

7.9                               Security
Interests.

 

Each Credit Party will
use commercially reasonable efforts to defend the Collateral against all claims
and demands of all Persons at any time claiming the same or any interest
therein other than Permitted Liens.  Each
Credit Party agrees to, and will cause the other Credit Parties to, comply with
the requirements of all applicable state and federal laws necessary to grant to
the Lenders valid and perfected first security interest in the Collateral as
required by this Agreement and the Security Documents.  The Agent is hereby authorized by each Credit
Party to file any financing statements in accordance with Section 5(f)
of the Security Agreement.  Each Credit
Party agrees to take the following actions as the Agent may reasonably request,
from time to time, by way of: reasonably cooperating with the Agent’s
custodians; keeping stock records; paying claims, which might if unpaid, become
a Lien (other than a Permitted Lien) on the Collateral except for claims which
are being contested in good faith; assigning its rights to the payment of
Accounts pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C. §3727 et. seq.) (the
failure of which to so assign will permit the Agent to exclude such Accounts
from the Borrowing Base); and performing such further acts as the Agent may
reasonably require in order to effect the purposes of Security Documents.  Subject to any limitation expressly set forth
herein any and all reasonable fees, costs and expenses of whatever kind and nature
(including any Taxes, reasonable attorneys’ fees or costs for insurance of any
kind), which the Agent may incur with respect to the Collateral or the
Obligations: in filing public notices; in preparing or filing documents; in
protecting, maintaining, or preserving the Collateral or its interest therein;
in enforcing or foreclosing the Liens hereunder, whether through judicial
procedures or otherwise; or in defending or prosecuting any actions or
proceedings arising out of or relating to its transactions with any Credit
Party or any of its Restricted Subsidiaries under this Credit Agreement or any
other Credit Document, will be borne and paid by the Credit Parties.  If same are not promptly paid by the Credit
Parties upon presentation of correct, detailed invoices, the Agent may pay same
on the Credit Parties’ behalf, and the amount thereof shall be an Obligation
secured hereby and due to the Agent on demand. 
If any Credit Party acquires or leases any Real Estate after the date
hereof, such Credit Party will promptly submit to the Agent an updated Schedule 6.19
pursuant to Section 7.17.

 

85

 

7.10                        Insurance;
Casualty Loss.

 

Each Credit Party will,
and will cause each of the Restricted Subsidiaries to, maintain public
liability insurance and replacement value property damage insurance on the
Collateral under such policies of insurance, with such insurance companies, in
such amounts and covering such risks as are commercially reasonable for the
industry and taking into account the interests of the Agent in the
Collateral.  All policies covering the
Collateral are to name the Credit Parties and the Agent as additional insureds, as their interests may appear.  Certificates of insurance evidencing such
insurance covering the Collateral are to be delivered to the Agent on or prior
to the Closing Date, premium prepaid, with the Agent as additional insured, and
shall provide for not less than thirty (30) days prior written notice to the
Agent or ten (10) days in the case of non-payment of premium, of the exercise
of any right of cancellation.  In the
event any Credit Party or any of its Restricted Subsidiaries fail to respond in
a timely and appropriate manner (as determined by the Agent in its reasonable
discretion) with respect to collecting under any insurance policies required to
be maintained under this Section 7.10, and if the amount involved
is $5,000,000 or more, the Agent shall have the right, in the name of the Agent
such Credit Party or Restricted Subsidiary, to file claims under such insurance
policies, to receive and give acquittance for any
payments that may be payable thereunder, and to
execute any and all endorsements, receipts, releases, assignments,
reassignments or other documents that may be necessary to effect the
collection, compromise or settlement of any claims under any such insurance
policies.  Each Credit Party will provide
written notice to the Agent of the occurrence of any of the following events
within fifteen (15) Business Days after the occurrence of such event: any
material asset or property owned or used by any Credit Party or any of its
Restricted Subsidiaries is (i) materially damaged or
destroyed, or suffers any other material loss or (ii) is condemned, confiscated
or otherwise taken, in whole or in part, or the use thereof is otherwise
diminished so as to render impracticable or unreasonable the use of such asset
or property for the purpose to which such asset or property were used
immediately prior to such condemnation, confiscation or taking, by exercise of
the powers of condemnation or eminent domain or otherwise, and in either case
the amount of the damage, destruction, loss or diminution in value of the
Collateral which is in excess of $4,000,000 (collectively, a “Casualty Loss”).  Each Credit Party will diligently file and
prosecute its claim or claims for any award or payment in connection with a
Casualty Loss.  After the occurrence and
during the continuance of an Event of Default, (i) no
settlement on account of any such Casualty Loss shall be made without the
consent of the Agent and (ii) the Agent may participate in any such proceedings
and the Credit Parties will deliver to the Agent such documents as may be
requested by the Agent to permit such participation and will consult with the
Agent, its attorneys and agents in the making and prosecution of such claim or
claims.  Each Credit Party hereby
irrevocably authorizes and appoints the Agent its attorney-in-fact, after the
occurrence and continuance of an Event of Default, to collect and receive for
any such award or payment and to file and prosecute such claim or claims, which
power of attorney shall be irrevocable and shall be deemed to be coupled with
an interest, and each Credit Party shall, upon demand of the Agent, make,
execute and deliver any and all assignments and other instruments sufficient
for the purpose of assigning any such award or payment to the Agent for the
benefit of the Lenders, free and clear of any encumbrances, other than
Permitted Liens.

 

86

 

 

7.11                        Taxes.

 

Each Credit Party will,
and will cause each of the Restricted Subsidiaries to, pay, when due, all
Taxes  levied or assessed against any
Credit Party, any of its Restricted Subsidiaries or any of the Collateral; provided,
however, that unless such Taxes have become a federal tax or ERISA Lien
on any of the assets of any Credit Party or any of its Restricted Subsidiaries,
in each case in an amount that would create an Event of Default, no such Tax,
other than state excise taxes, need be paid if the same is being contested in
good faith, by appropriate proceedings promptly instituted and appropriately
conducted and if an adequate reserve or other appropriate provision shall have
been made therefor as required in order to be in conformity with GAAP.

 

7.12                        Compliance
With Laws.

 

Each Credit Party will,
and will cause each of its Restricted Subsidiaries to, comply with all acts,
rules, regulations, orders, directions and ordinances of any legislative,
administrative or judicial body or official applicable to the Collateral or any
part thereof, or to the operation of its business, except where the failure to
so comply could not reasonably be expected to have a Material Adverse Effect.

 

7.13                        Use
of Proceeds.

 

The proceeds of any
advances made hereunder shall be used by the Borrower solely to refinance
existing indebtedness, to finance the ongoing capital expenditures and working
capital needs of the Borrower, and to finance other general corporate purposes
of the Borrower; provided, however, that in any event, no portion
of the proceeds of any such advances shall be used by the Borrower for the
purpose of purchasing or carrying any “margin stock” (as defined in Regulation
U of the Board of Governors of the Federal Reserve System) or for any other
purpose which violates the provisions or Regulation U of said Board of
Governors or for any other purpose in violation of any applicable statute or
regulation, or of the terms and conditions of this Credit Agreement.

 

7.14                        Fiscal
Year; Accounting Policies; Risk Management Policy.  

 

Each Credit Party agrees
that it will not change its fiscal year from a year ending June 30 unless
required by law, in which case such Credit Party will give the Agent prompt
written notice thereof; provided that notwithstanding the foregoing,
following the IPO, the Credit Parties may change to a December 31 fiscal
year, commencing with a fiscal year ending December 31, 2005, upon
reasonable notice to the Agent.  Subject
to Section 1.2, each Credit Party agrees that it will provide
prompt notice to the Agent of any material change to its accounting policies
from those used to prepare the financial statements delivered pursuant to Section 5.1(c).   Each Credit Party agrees that it will
maintain its Risk Management Policy, subject to such changes as may be approved
by its Board of Directors.  In the event
of any material change in its Risk Management Policy, within twenty (20) days
thereof, it will notify the Agent and furnish to the Agent a copy of such
change.

 

7.15                        Notification
of Certain Events.

 

Each Credit Party agrees
that it will promptly, and in any case within five (5) Business Days, notify
the Agent of the occurrence of any of the following events:

 

87

 

(a)                                  any
Material Contract of any Credit Party is terminated or amended in any material
adverse respect or any new Material Contract is entered into (in which event
each Credit Party shall provide the Agent with a copy of such Material
Contract); or

 

(b)                                 any
order, judgment or decree shall have been entered against any Credit Party or
any of its Restricted Subsidiaries or any of their respective properties or
assets, if a Lien arising therefrom would create an Event of Default, or

 

(c)                                  any
notification of violation of any law or regulation or any inquiry shall have
been received by any Credit Party from any local, state, federal or foreign
Governmental Authority or agency which could reasonably be expected to have a
Material Adverse Effect, or

 

(d)                                 the
filing or receipt by any Credit Party of notice of, any federal or state tax
lien, if such Lien would create an Event of Default, or

 

(e)                                  the
receipt of any claim or claims in the aggregate in excess of $5,000,000 since
the Closing Date for indemnification on account of environmental matters by any
of the MLP Entities under the indemnification given by the Borrower in
connection with the transfer of assets on the Closing Date or pursuant to the
MLP Omnibus Agreement.

 

7.16                        Additional
Guarantors.

 

With respect to any newly
created or acquired Restricted Subsidiary of the Borrower or any existing
Restricted Subsidiary of the Borrower, 
if such Restricted Subsidiary has 5% or more of the consolidated total
assets or contributes 5% or more of the consolidated operating profits of the
Borrower and its consolidated Restricted Subsidiaries, or if such Restricted
Subsidiary would be required to be a guarantor of the Senior Subordinated Notes
pursuant to the Senior Subordinated Notes Indenture, the Credit Parties will
provide the Agent with written notice thereof setting forth information in
reasonable detail describing all of the material assets of such Person and
shall (a) cause any such Person that is a Domestic Restricted Subsidiary to
execute and deliver to the Agent a Joinder Agreement in substantially the form
of Exhibit L, causing such Restricted Subsidiary to become a party to
(i) the Guaranty, as a joint and several “Guarantor”, (ii) the Security
Agreement, as an “Obligor” granting a first priority Lien on its personal
property, subject to Permitted Liens, (iii) the Contribution Agreement, as a “Contributing
Party” and (iv) as appropriate, the Pledge Agreement, as a “Pledgor”, causing
all of its Capital Stock (or, in the case of any Foreign Restricted Subsidiary,
and without waiving the requirement for the prior consent of the Required
Lenders for the formation or acquisition thereof, sixty-five percent (65%) of
its Capital Stock) to be delivered to the Agent (together with undated stock
powers signed in blank and pledged to the Agent), and (b) deliver such other
documentation as the Agent may reasonably request in connection with the
foregoing, including, without limitation, appropriate UCC-1 financing
statements,  certified resolutions and
other organizational and authorizing documents of such Person and favorable
opinions of counsel (which may be in the Borrower’s legal department) to such
Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to above), all in form,
content and scope reasonably satisfactory to the Agent.

 

88

 

7.17                        Revisions
or Updates to Schedules.

 

If any of the information
or disclosures provided on any of Schedules 6.7, 6.8, 6.9, 6.17 or 6.19,
originally attached hereto become outdated or incorrect in any material
respect, the Credit Parties shall deliver to the Agent and the Lenders as part
of the compliance certificate required pursuant to Section 7.1(d)
such revision or updates to such Schedule(s) as may be necessary or appropriate
to update or correct such Schedule(s); provided, that such revisions or
updates to any such Schedule(s) shall be deemed to have amended, modified or
superseded such Schedule(s) as originally attached hereto or revised or updated
pursuant hereto, but shall not be deemed to have cured any breach of warranty
or misrepresentation resulting from the inaccuracy or incompleteness of any
such Schedule(s) as it existed prior to such revision of update unless and
until the Agent, in its sole and absolute discretion, shall have accepted in
writing such revisions or updates to such Schedule(s).

 

7.18                        Collection
of Accounts.

 

Rights with respect to
collection of Accounts shall be as set forth in the Security Agreement.

 

7.19                        Notice
of Matters Affecting Accounts.

 

Each Credit Party will
notify the Agent promptly of any matters materially affecting the value,
enforceability or collectibility of any Account and of all material customer
disputes, offsets, defenses, counterclaims, in each case if the amount
contested is equal to or in excess of $5,000,000.

 

7.20                        Maintenance
of Property.

 

Each Credit Party will,
and will cause each of its Restricted Subsidiaries to, use commercially
reasonable efforts to keep all property useful and necessary to its respective
business in good working order and condition (ordinary wear and tear excepted)
in accordance with their past operating practices except for such property not
material to the conduct of such Credit Party’s business.

 

7.21                        Trademarks.

 

Each Credit Party will do
and cause to be done all things reasonably necessary to preserve and keep in
full force and effect all registrations of trademarks, service marks and other
marks, trade names or other trade rights, in each case to the extent material to
the conduct of such Credit Party’s business.

 

7.22                        Anti-Terrorism
Laws.

 

None of the Credit
Parties shall, nor shall any of them permit any of their respective Restricted
Subsidiaries to, (i) conduct any business or engage in any transaction or
dealing with any Blocked Person, including the making or receiving any
contribution of funds, goods or services to or for the benefit of any Blocked
Person; (ii) deal in, or otherwise engage in any transaction relating to, any
property or interests in property blocked pursuant to Executive Order No.
13224; or (iii) knowingly engage in on conspire to engage in any transaction
that evades or

 

89

 

avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in Executive Order No. 13224 or the USA Patriot Act.  Each of the Credit Parties shall deliver to
the Agent and Lenders any certification or other evidence reasonably requested
from time to time by the Agent or any Lender, in the Agent’s reasonable
discretion, confirming such Person’s compliance with this Section.

 

ARTICLE VIII

FINANCIAL COVENANTS

 

Until all of the Credit
and Collateral Termination Events have occurred, the Borrower and (by execution
and delivery of the Guaranty Agreement or of a joinder thereto and
incorporation by reference therein) each Guarantor agrees that, unless the
Required Lenders shall have otherwise consented in writing:

 

8.1                               Fixed
Charge Coverage Ratio.

 

A Fixed Charge Coverage
Ratio shall be maintained of not less than 1.10 to 1.00 as of the last day of
each fiscal quarter, commencing with the first fiscal quarter after the
Closing; provided that such ratio may be less than 1.10:1.00 if Average
Excess Availability is at least $50,000,000.

 

ARTICLE IX

NEGATIVE COVENANTS

 

Until all of the Credit
and Collateral Termination Events have occurred, each of the Borrower and (by
execution and delivery of the Guaranty Agreement or of a joinder thereto and
incorporation by reference therein) each Guarantor agrees that, unless the
Required Lenders shall have otherwise consented in writing, it will not, and
will not permit any of its Restricted Subsidiaries to:

 

9.1                               Restrictions
on Liens.

 

Mortgage, assign, pledge,
transfer or otherwise permit any Lien or judgment (whether as a result of a
purchase money or title retention transaction, or other security interest, or
otherwise) to exist on any of its assets or properties, whether real, personal
or mixed, whether now owned or hereafter acquired, except for Permitted Liens.

 

9.2                               Restrictions
on Additional Indebtedness.

 

Incur or create any
liability or Indebtedness other than Permitted Indebtedness.

 

9.3                               Restrictions
on Sale of Assets.

 

Sell, lease, assign,
transfer or otherwise dispose of any assets (including the Capital Stock of any
Restricted Subsidiary of the Borrower) other than (a) sales of Inventory in the ordinary course of business, (b) sale-leaseback transactions permitted by Section 9.14,
(c) sales or other dispositions in the
ordinary course of business of assets or properties that are obsolete or that
are

 

90

 

no longer used or useful
in the conduct of such Credit Party’s or Restricted Subsidiary’s business, (d)
sales in the ordinary course of business of assets or properties (other than
Inventory) used in such Credit Party’s or Restricted Subsidiary’s business that
are worn out or in need of replacement and that are replaced within six (6)
months with assets of reasonably equivalent value or utility, (e) sales of the
initial fixed assets in connection with the IPO in consideration of cash and/or
the transfer to Coastal Fuels Marketing, Inc. and to TransMontaigne Product
Services Inc. of units of limited partner interest in Partners and the transfer
to the General Partner (a wholly owned subsidiary of TransMontaigne Services
Inc.)  units (constituting 2% of the
total limited partner interests) of general partner interest in Partners and
incentive distribution rights, all as described in the S-1 Registration
Statement pertaining to the IPO, (f) subsequent sales of additional refined
product terminals (including, but not limited to, Mortgaged Real Estate) to
Partners (or its designees, including Operating Company or other MLP Entities),
so long as no Default or Event of Default is in existence or would be created
thereby, and subject to the Option Consideration Requirements, (g) sales by
Coastal Fuels Marketing, Inc. of up to 502,500 common units of partnership
interests in Partners that were acquired as Investments as contemplated in
clause (i)(1) and (2) of the definition of “Permitted Investments” in
connection with the exercise by the underwriters for the IPO of their
over-allotment option within the 30 day period following the date of the
Prospectus for the IPO, (h) transfers by TransMontaigne Services Inc. of
120,000 common units of partnership interests in Partners that were acquired as
Investments as contemplated in clause (i)(1) and (2) of the definition of “Permitted
Investments” pursuant to its long-term incentive plan, (i) subject to the prior
written consent of the Required Lenders, sales of other units of partnership
interests in Partners that were acquired as Investments as contemplated in
clause (i)(1) and (2) of the definition of “Permitted Investments”, (j) other
asset sales not exceeding in the aggregate for all Credit Parties $10,000,000
in any fiscal year and (k) the Lion Oil Company Disposition Transaction.

 

9.4                               No
Corporate Changes.

 

(a)                                  Merge
or consolidate with any Person, provided, however, that subject
to Section 7.16, the Borrower and its Restricted Subsidiaries may
merge or consolidate with and into each other (so long as, if such merger or
consolidation involves the Borrower, the Borrower is the surviving entity, if
such merger or consolidation involves a Domestic Restricted Subsidiary and a
Foreign Restricted Subsidiary, the Domestic Restricted Subsidiary is the
surviving entity and if such merger or consolidation involves a Credit Party
and a Restricted Subsidiary that is not a Credit Party, the Credit Party is the
surviving entity) and the Credit Parties may engage in Permitted Acquisitions,
(b) alter or modify any Credit Party’s or
any of its Restricted Subsidiary’s Articles or Certificate of Incorporation or
other equivalent organizational document or form of organization in any manner
adverse to the interests of the Agent or the Lenders or in any way which could
reasonably be expected to have a Material Adverse Effect, (c) without providing thirty (30) days prior
written notice to the Agent (or such shorter period as determined by the Agent)
and without filing (or confirming that the Agent has filed) such amendments to
any previously filed financing statements as may be necessary to maintain
perfection of the security interest created under the Credit Documents as the
Agent may require, (i) change its state of incorporation or formation, (ii)
change its registered corporate name, (iii) change the location of its books
and records from the locations set forth on Schedule 6.7, or (iv)
change the location of its Collateral from the locations set forth for such
Person on Schedule 6.7, or (d) enter into or engage in any
business, operation or activity

 

91

 

materially
different from that presently being conducted by the Credit Parties; provided,
however, that notwithstanding the foregoing, the Borrower may dissolve
or liquidate any Restricted Subsidiary that is not a Credit Party and is not
required to be one pursuant hereto.

 

9.5                               No
Guarantees.

 

Assume, guarantee,
endorse, or otherwise become liable upon the obligations of any other Person,
including, without limitation, any Subsidiary or Affiliate of any Credit Party,
except (a) by the endorsement of negotiable instruments in the ordinary course
of business, (b) by the giving of indemnities in connection with the sale of
Inventory or other asset dispositions permitted hereunder and (c) in connection
with the incurrence of Permitted Indebtedness.

 

9.6                               No
Restricted Payments.

 

Make a Restricted Payment,
other than (i) to pay dividends from any Restricted Subsidiary to any Credit
Party and (ii) Permitted Restricted Payments.

 

9.7                               No
Investments.

 

Make any Investment other
than Permitted Investments.

 

9.8                               No
Affiliate Transactions.

 

Except pursuant to the
MLP Omnibus Agreement, the MLP Terminaling Services Agreement, the MLP
Partnership Agreement or other agreements described on Schedule 6.29,
enter into any transaction with, including, without limitation, the purchase,
sale or exchange of property or the rendering of any service to any Subsidiary
or Affiliate of any Credit Party except (a) in the ordinary course of such
Credit Party’s business and upon fair and reasonable terms no less favorable to
such Credit Party than could be obtained in a comparable arm’s-length
transaction with an unaffiliated Person and (b) as permitted under Section 9.6.

 

9.9                               No
Prohibited Transactions Under ERISA.

 

(a)                                  Engage,
or permit any ERISA Affiliate to engage, in any prohibited transaction which
could result in a material civil penalty or excise tax described in Section 406
of ERISA or Section 4975 of the Internal Revenue Code for which a
statutory or class exemption is not available or a private exemption has not
been previously obtained from the DOL;

 

(b)                                 permit
to exist with respect to any Benefit Plan any accumulated funding (as defined
in Sections 302 of ERISA and 412 of the Internal Revenue Code),
whether or not waived;

 

(c)                                  fail,
or permit any ERISA Affiliate to fail, to pay timely required contributions or
annual installments due with respect to any waived funding deficiency to any
Benefit Plan;

 

92

 

(d)                                 terminate,
or permit any ERISA Affiliate to terminate, any Benefit Plan where such event
would result in any liability of the Credit Party or any of its Restricted
Subsidiaries or the General Partner or any of the ERISA Affiliates under Title
IV of ERISA;

 

(e)                                  fail,
or permit any ERISA Affiliate to fail to make any required contribution or
payment to any Multiemployer Plan;

 

(f)                                    fail,
or permit any ERISA Affiliate to fail, to pay any required installment or any
other payment required under Section 412 of the Internal Revenue
Code on or before the due date for such installment or other payment;

 

(g)                                 amend,
or permit any ERISA Affiliate to amend, a Benefit Plan resulting in an increase
in current liability for the plan year such that any of the Credit Parties or
any of their Restricted Subsidiaries or the General Partner or any of the ERISA
Affiliates is required to provide security to such Benefit Plan under Section 401(a)(29)
of the Internal Revenue Code;

 

(h)                                 withdraw,
or permit any ERISA Affiliate to withdraw, from any Multiemployer Plan where
such withdrawal may result in any liability of any such entity under Title IV of
ERISA; or

 

(i)                                     allow
any representation made in Section 6.14 to be untrue at any time
during the term of this Credit Agreement.

 

9.10                        No
Additional Bank, Securities or Commodities Accounts.

 

Open, maintain or
otherwise have any checking, savings or other accounts at any bank or other
financial institution, or any securities account, or any other account where
money is or may be deposited or maintained, or securities are maintained, with
any Person, other than (a) commodities accounts maintained with commodities
brokers in the ordinary course of business in accordance with historical
practices, each of which shall be subject to a Commodities Account Control
Agreement, except to the extent otherwise determined by the Agent, (b) the
accounts set forth on Schedule 6.32, each of which shall be subject
to a Deposit Account Control Agreement, except to the extent otherwise
determined by the Agent, (c) deposit
accounts and securities accounts established after the Closing Date that are
subject to a Deposit Account Control Agreement or a Securities Account Control
Agreement, as applicable, (d) other deposit accounts established after the
Closing Date solely as payroll and other zero balance accounts and (e) other
deposit accounts established after the Closing Date, so long as at any time the
aggregate balance in all such accounts does not exceed $10,000,000.

 

9.11                        Restrictions
on the Borrower.

 

Hold, in the case of
Borrower only, any assets other than the stock of the Credit Parties and the
other Subsidiaries listed on Schedule 6.9 and have, in the case of
Borrower only, any liabilities other than (a) the liabilities under the Credit
Documents, (b) other Indebtedness in existence on the date hereof and
refinancings thereof, (c) Subordinated Debt, and (d) tax, routine administrative
and other liabilities not constituting Indebtedness, intercompany liabilities
not prohibited hereby and guarantees constituting Permitted Indebtedness,  in each case incurred in

 

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the ordinary course of
business.  In the case of Borrower only,
sell, transfer or otherwise dispose of any shares of Capital Stock of or other
ownership interests in the Credit Parties or such Subsidiaries, or engage in
any business other than owning the stock of the Credit Parties and such
Subsidiaries.

 

9.12                        Additional
Negative Pledges.

 

Create or otherwise cause
or suffer to exist or become effective, or permit any of the Restricted
Subsidiaries to create or otherwise cause or suffer to exist or become
effective, directly or indirectly: (i) any prohibition or restriction
(including any agreement to provide equal and ratable security to any other
Person in the event a Lien is granted to or for the benefit of the Agent and
the Lenders) on the creation or existence of any Lien upon the assets of any
Credit Party or any of its Restricted Subsidiaries, other than Permitted Liens,
except (1) this Agreement and the other Credit Documents, (2) covenants in
documents creating Permitted Liens, but only to the extent of the property
encumbered by such Permitted Lien, (3) covenants in existing documents,
including, without limitation, the Senior Subordinated Notes, but only as such
covenants exist on the Closing Date and (4) any other agreement that does not
restrict in any manner (directly or indirectly) Liens created pursuant to the
Credit Documents on property or assets of the Borrower or any of its Restricted
Subsidiaries (whether now owned or hereafter acquired) securing the Loans or
any Lender Hedging Agreement;  or (ii) any
Contractual Obligation which may restrict or inhibit the Agent’s rights or
ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default.

 

9.13                        Subordinated
Debt.

 

Effect or permit any
change in or amendment to any document or instrument pertaining to the
subordination, terms of payment or required prepayments of any Subordinated
Debt, increase the rates or amounts of interest or fees payable with respect to
any Subordinated Debt, effect or permit any change in or amendment to any
document or instrument pertaining to the covenants or events of default of any
Subordinated Debt if the effect of any such change or amendment is to make such
covenants or events of default more restrictive, give any notice of optional
redemption or optional prepayment or offer to repurchase under any such
document or instrument, or, directly or indirectly, make any payment of
principal of or interest on or in redemption, retirement or repurchase of any
Subordinated Debt, except, so long as no Default or Event of Default is in
existence or would be created thereby: (i) for the scheduled payments required
by the terms of the documents and instruments evidencing Subordinated Debt and
permitted by the subordination provisions of the documents and instruments
evidencing Subordinated Debt; and (ii) for payments in respect of the Senior
Subordinated Notes to the extent constituting a Permitted Restricted Payment.

 

9.14                        Sale
and Leaseback.

 

Enter into any
arrangement, directly or indirectly, whereby any Credit Party or any of its
Restricted Subsidiaries shall sell or transfer any property owned by it to a
Person (other than the Credit Parties or any of their Restricted Subsidiaries)
in order then or thereafter to lease such property or lease other property
which such Credit Party or Restricted Subsidiary intends to use for
substantially the same purpose as the property being sold or transferred.  Notwithstanding the foregoing provisions of
this Section 9.14, (i) any Credit Party or any of its Restricted

 

94

 

Subsidiaries may sell or
transfer any property owned by it as described in the preceding sentence provided
that the aggregate current market value of all assets so sold or transferred (in
each case determined at the time of such sale or transfer, and taking into
account all such sales or transfers under this Section 9.14 since
the Closing Date) shall not exceed $20,000,000, and (ii) the MLP Terminaling
Services Agreement shall not constitute a lease for any purpose under this Section 9.14.

 

9.15                        Limitations.

 

Create, nor will it
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
otherwise cause, incur, assume, suffer or permit to exist or become effective
any consensual encumbrance or restriction of any kind on the ability of any
such Person to (a) pay dividends or make any other distribution on any of
such Person’s Capital Stock, (b) pay any Indebtedness owed to the Credit
Parties, (c) make loans or advances to any other Credit Party or (d) transfer
any of its property to any other Credit Party, except for encumbrances or
restrictions existing under or by reason of (i) customary non-assignment
provisions in any lease governing a leasehold interest, (ii) any agreement or
other instrument of a Person existing at the time it becomes a Restricted
Subsidiary of a Credit Party; provided that such encumbrance or
restriction is not applicable to any other Person, or any property of any other
Person, other than such Person becoming a Restricted Subsidiary of a Credit
Party and was not entered into in contemplation of such Person becoming a
Restricted Subsidiary of a Credit party and (iii) this Credit Agreement and the
other Credit Documents.

 

9.16                        Operating
Lease Obligations.

 

Enter into or permit any
Subsidiary to enter into, assume or permit to exist any obligations for the
payment of rent under operating leases which in the aggregate for all such
Persons would exceed $20,000,000 in any fiscal year, exclusive of (i) payments
for the chartering of vessels in the ordinary course of business, (ii)
operating leases that have an initial term of one year or less unless such
lease contains an automatic renewal feature that will cause the initial term
with such renewals to exceed one year, and (iii) the MLP Terminaling Services
Agreement.

 

ARTICLE X

POWERS

 

10.1                        Appointment
as Attorney-in-Fact.

 

A power of attorney in
favor of the Agent for the benefit of the Lenders with respect to the
Collateral shall be as set forth in the Security Documents.

 

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ARTICLE XI

EVENTS OF DEFAULT AND REMEDIES

 

11.1                        Events
of Default.

 

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

 

(a)                                  failure
of the Borrower to pay (i) any interest or Fees hereunder within three (3)
Business Days of when due hereunder, in each case whether at stated maturity,
by acceleration, or otherwise, (ii) any principal of the Revolving Loans or the
Letter of Credit Obligations when due, whether at stated maturity, by
acceleration or otherwise or (iii) any other amounts owing hereunder or any
other Credit Document within five (5) Business Days
after such amounts are due;

 

(b)                                 any
representation or warranty, contained in this Credit Agreement, the other
Credit Documents or any other agreement, document, instrument or certificate
among any Credit Party, the Agent and the Lenders or executed by any Credit
Party in favor of the Agent or the Lenders shall prove untrue in any material respect
on or as of the date it was made or was deemed to have been made;

 

(c)                                  failure
of any Credit Party to perform, comply with or observe any term, covenant or
agreement applicable to it contained in Section 7.1(j), Section 7.3,
Section 7.7 (but only as to inspection rights),  Article VIII or Sections 9.3,
9.4, 9.6, 9.13 or 9.14;

 

(d)                                 failure
to comply with any other covenant contained in this Credit Agreement, the other
Credit Documents or any other agreement, document, instrument or certificate
among any Credit Party, the Agent and the Lenders or executed by any Credit
Party in favor of the Agent or the Lenders and, in the event such breach or
failure to comply is capable of cure, such breach or failure to comply is not
cured within thirty (30) days after the earlier of (a) notice thereof by
the Administrative Agent, and (b) an Executive Officer of the Borrower
becoming aware thereof and (c) only as to any failure to give notice as
required by Section 7.5, such failure is not cured within five (5)
Business Days after an Executive Officer becomes aware of such notice;

 

(e)                                  dissolution,
liquidation, winding up or cessation of the business of any Credit Party or any
of its Restricted Subsidiaries, or the failure of any Credit Party or any of
its Restricted Subsidiaries to meet its debts generally as they mature, or the
calling of a meeting of any Credit Party’s or any of its Restricted
Subsidiaries’ creditors for purposes of compromising any Credit Party’s or any
of its Restricted Subsidiaries’ debts, or the failure by any Credit Party or
any of its Restricted Subsidiaries generally, or the admission by any Credit
Party or any of its Restricted Subsidiaries of its inability, to pay its debts
as they become due (unless such debts are the subject of a bona fide dispute);

 

(f)                                    the
commencement by or against any Credit Party or any of its Restricted
Subsidiaries of any bankruptcy, insolvency, arrangement, reorganization,
receivership or similar case or proceeding with respect to it under any federal
or state law and, in the

 

96

 

event any such
proceeding is commenced against any Credit Party or any of its Restricted
Subsidiaries, such proceeding is not dismissed within sixty (60) days or an
order for relief is entered at any time;

 

(g)                                 the
occurrence of a Change of Control;

 

(h)                                 any
Credit Party or any of its Restricted Subsidiaries shall fail to make any
payment in respect of Indebtedness outstanding (other than the Notes) in an
aggregate principal amount of $10,000,000 or more when due or within any
applicable grace period; or

 

(i)                                     (i)
any event or condition shall occur which results in the acceleration of the
maturity of Indebtedness outstanding of any Credit Party or any of its
Restricted Subsidiaries in an aggregate principal amount of $10,000,000 or more
(including, without limitation, any required mandatory prepayment or “put” of
such Indebtedness to such Credit Party or Restricted Subsidiary or enables (or,
with the giving of notice or lapse of time or both, would enable) the holders
of such Indebtedness or commitment or any Person acting on such holders’ behalf
to accelerate the maturity thereof or terminate any such commitment prior to
its normal expiration (including, without limitation, any required mandatory prepayment
or “put” of such Indebtedness to such Credit Party or Restricted Subsidiary),
or (ii) the failure of any Credit Party to pay any termination payment when due
upon the termination of any Lender Hedging Agreement;

 

(j)                                     any
material covenant, agreement or obligation of any party contained in or
evidenced by any of the Credit Agreement, any Revolving Notes, the Letter of
Credit Documents, the Guaranty Agreement, the Contribution Agreement or the
Security Documents shall cease to be enforceable in accordance with its terms
or to give the Agent and/or the Lenders the security interests, liens, rights,
powers and privileges purported to be created thereby (except as such documents
may be terminated or no longer in force and effect in accordance with the terms
thereof, other than those indemnities and provisions which by their terms shall
survive), or any party (other than the Agent or the Lenders) to any Credit
Document shall deny or disaffirm its obligations under any of the Credit
Documents, or any Credit Document shall be canceled, terminated, revoked or
rescinded without the express prior written consent of the Agent, or any action
or proceeding shall have been commenced by any Person (other than the Agent or
any Lender) seeking to cancel, revoke, rescind or disaffirm the obligations of
any party to any Credit Document, or 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 any Credit Document are illegal, invalid or
unenforceable;

 

(k)                                  (i) any Governmental Authority with applicable
jurisdiction determines that the Senior Subordinated Notes or any other
Subordinated Debt in an amount of $10,000,000 or more is not subordinated to
any of the Obligations or (ii) the
subordination provisions in any agreement relating to Subordinated Debt shall,
in whole or in part, terminate, cease to be effective or cease to be legally
valid, binding and enforceable as to any holder of such Subordinated Debt;

 

97

 

(l)                                     one
or more judgments or decrees shall be entered against, or Lien arising from any
environmental liability shall be imposed against one or more of the Credit
Parties or any of their Restricted Subsidiaries involving a liability of
$10,000,000 or more in the aggregate (to the extent not paid or covered by
insurance as determined by the Agent in its reasonable discretion) and any such
judgments or decrees shall not have been vacated, discharged or stayed or
bonded pending appeal within sixty (60) days from the entry thereof;

 

(m)                               any
Termination Event with respect to a Benefit Plan shall have occurred and be
continuing thirty (30) days after notice thereof shall have been given to the
Borrower by the Agent or any Lender, and the then current value of such Benefit
Plan’s benefits guaranteed under Title IV of ERISA exceeds the then current
value of such Benefit Plan’s assets allocable to such benefits by more than
$10,000,000 (or in the case of a Termination Event involving the withdrawal of
a substantial employer, the withdrawing employer’s proportionate share of such
excess exceeds such amount); or

 

(n)                                 any
event of default on the part of a Credit Party 
shall have occurred under any Material Contract to which any Credit
Party is a party, if as a result of such event of default the liability of such
Credit Party thereunder is $10,000,000 or more.

 

11.2                        Acceleration.

 

Upon the occurrence and
during the continuance of an Event of Default, and at any time thereafter, at
the direction of the Required Lenders, the Agent shall, upon the written,
telecopied or telex request of the Required Lenders, and by delivery of written
notice to the Credit Parties from the Agent, take any or all of the following
actions, without prejudice to the rights of the Agent, any Lender or the holder
of any Note to enforce its claims against the Borrower:  (a) declare all Obligations (other than
those arising in connection with a Lender
Hedging Agreement) to be immediately due and payable (except with respect
to any Event of Default set forth in Section 11.1(f), in which case
all Obligations (other than those arising in connection with a Lender Hedging Agreement) shall
automatically become immediately due and payable without the necessity of any
notice or other demand) without presentment, demand, protest or any other
action, notice or obligation of the Agent or any Lender, (b) immediately
terminate this Credit Agreement and the Revolving Credit Commitments hereunder;
and (c) enforce any and all rights and interests created and existing under the
Credit Documents or arising under applicable law, including, without
limitation, all rights and remedies existing under the 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.

 

In addition, upon demand
by the Agent or the Required Lenders upon the occurrence of any Event of
Default, and at any time thereafter unless and until such Event of Default has
been waived by the requisite Lenders (in accordance with the voting
requirements of Section 14.9), the Borrower shall deposit with the
Agent for the benefit of the Lenders with respect to each Letter of Credit then
outstanding, promptly upon such demand, cash or Cash Equivalents in an amount
equal to the greatest amount for which such Letter of Credit may be drawn.  Such deposit shall be held by the Agent for
the benefit of the Issuing Bank and the other Lenders as security for, and to
provide for the payment of, outstanding Letters of Credit.

 

98

 

ARTICLE XII

TERMINATION

 

(a)                                  Except
as otherwise provided in Article XI, the Revolving Loan Commitments
made hereunder shall terminate on the Maturity Date and all then outstanding
Loans shall be immediately due and payable in full and all outstanding Letters
of Credit shall immediately terminate. 
Unless sooner demanded, all Obligations shall become due and payable as
of any termination hereunder or under Article XI and, pending a
final accounting, the Agent may withhold any balances in the Borrower’s Loan
accounts, in an amount sufficient, in the Agent’s reasonable discretion, to
cover all of the Obligations, whether absolute or contingent, unless supplied
with a satisfactory indemnity to cover all of such Obligations.  All of the Agent’s and the Lenders’ rights,
liens and security interests shall continue after any termination until
terminated in accordance with the provisions of paragraph (b) of this Article XII.

 

(b)                                 This
Credit Agreement, together with all other Credit Documents, shall continue in
full force and effect, until each of the following events (collectively, the “Credit
and Collateral Termination Events”) has occurred: (i) all Obligations have
been fully and finally paid and performed (other than inchoate indemnity
obligations), (ii) all Letters of Credit have expired or terminated (or other
arrangements relating thereto that are reasonably satisfactory to the Agent
have been made in a writing signed by the Borrower and the Issuing Bank in
respect of such Letter of Credit), (iii) all Lender Hedging Agreements have
expired or terminated (or other arrangements relating thereto have been made in
a writing signed by all Persons party to such Lender Hedging Agreement and the
Agent), (iv) all agreements relating to Cash Management Products have expired
or terminated (or other arrangements relating thereto have been made in a
writing signed by all Persons party to such agreements and the Agent), and (v)
all Revolving Credit Commitments have been terminated and no Person or
Governmental Authority shall have any right to request any return or
reimbursement of funds from the Agent or the Lenders in connection with any of
the foregoing.

 

ARTICLE XIII

THE AGENT

 

13.1                        Appointment
of Agent.

 

(a)                                  Each
Lender hereby designates Wachovia as Agent to act as herein specified.  Each Lender hereby irrevocably authorizes,
and each holder of any Note or participation in any Letter of Credit by the
acceptance of a Note or participation shall be deemed irrevocably to authorize,
the Agent to take such action on its behalf under the provisions of this Credit
Agreement and the Notes and any other instruments and agreements referred to
herein and to exercise such powers and to perform such duties hereunder and
thereunder as are specifically delegated to or required of the Agent by the
terms hereof and thereof and such other powers as are reasonably incidental
thereto.  The Agent shall hold all
Collateral and all payments of principal, interest, Fees, charges and expenses
received pursuant to this Credit Agreement or any other Credit Document for

 

99

 

the ratable
benefit of the Lenders.  The Agent may
perform any of its duties hereunder by or through its agents or employees. Each Lender hereby designates JPMorgan
Chase Bank, N.A. and UBS AG, Stamford Branch
as the Syndication Agents and Société Générale, New York Branch and Wells Fargo Foothill, LLC, as the Documentation
Agents.  The Syndication Agents and the
Documentation Agents, in such capacity, shall have no duties or obligations
whatsoever under this Credit Agreement or any other Credit Document or any
other document or any matter related hereto and thereto, but shall nevertheless
be entitled to all the indemnities and other protection afforded to the Agent
under this Article XIII.

 

(b)                                 The
provisions of this Article XIII are solely for the benefit of the
Agent and the Lenders, and none of the Credit Parties shall have any rights as
a third party beneficiary of any of the provisions hereof (other than Section 13.9).  In performing its functions and duties under
this Credit Agreement, the Agent shall act solely as agent of the Lenders and
does not assume and shall not be deemed to have assumed any obligation toward
or relationship of agency or trust with or for the Borrower.

 

13.2                        Nature
of Duties of Agent.

 

The Agent shall have no
duties or responsibilities except those expressly set forth in this Credit
Agreement.  Neither the Agent nor any of
its officers, directors, employees or agents shall be liable for any action
taken or omitted by it as such hereunder or in connection herewith, unless
caused by its or their gross negligence or willful misconduct.  The duties of the Agent shall be mechanical
and administrative in nature; the Agent shall not have by reason of this Credit
Agreement a fiduciary relationship in respect of any Lender; and nothing in
this Credit Agreement, expressed or implied, is intended to or shall be so
construed as to impose upon the Agent any obligations in respect of this Credit
Agreement except as expressly set forth herein.

 

13.3                        Lack
of Reliance on Agent.

 

(a)                                  Independently
and without reliance upon the Agent, each Lender, to the extent it deems
appropriate, has made and shall continue to make (i) its own independent
investigation of the financial or other condition and affairs of each Credit
Party in connection with the taking or not taking of any action in connection
herewith and (ii) its own appraisal of the creditworthiness of each Credit
Party, and, except as expressly provided in this Credit Agreement, the Agent
shall have no duty or responsibility, either initially or on a continuing
basis, to provide any Lender with any credit or other information with respect
thereto, whether coming into its possession before the making of the Revolving
Loans or at any time or times thereafter.

 

(b)                                 The
Agent shall not be responsible to any Lender for any recitals, statements,
information, representations or warranties herein or in any document,
certificate or other writing delivered in connection herewith or for the
execution, effectiveness, genuineness, validity, enforceability,
collectibility, priority or sufficiency of this Credit Agreement, the Notes or
any other Credit Document or the financial or other condition of any Credit
Party.  The Agent shall not be required
to make any inquiry concerning either the performance or observance of any of
the terms, provisions or conditions of this Credit Agreement, the Notes or any
other Credit Document, or the

 

100

 

financial
condition of any Credit Party, or the existence or possible existence of any
Default or Event of Default, unless specifically requested to do so in writing
by any Lender.

 

13.4                        Certain
Rights of the Agent.

 

The Agent shall have the
right to request instructions from the Required Lenders or, as required, each
of the Lenders.  If the Agent shall
request instructions from the Required Lenders or each of the Lenders, as the
case may be, with respect to any act or action (including the failure to act)
in connection with this Credit Agreement, the Agent shall be entitled to
refrain from such act or taking such action unless and until the Agent shall
have received instructions from the Required Lenders or each of the Lenders, as
the case may be, and the Agent shall not incur liability to any Person by
reason of so refraining.  Without
limiting the foregoing, no Lender shall have any right of action whatsoever
against the Agent as a result of the Agent acting or refraining from acting
hereunder in accordance with the instructions of the Required Lenders or each
of the Lenders, as the case may be.

 

13.5                        Reliance
by Agent.

 

The Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, statement, certificate, telex teletype or
telecopier message, cablegram, radiogram, order or other documentary,
teletransmission or telephone message believed by it in good faith to be
genuine and correct and to have been signed, sent or made by the proper
person.  The Agent may consult with legal
counsel (including counsel for the Credit Parties with respect to matters
concerning the Credit Parties), independent public accountants and other
experts selected by it in good faith and shall not be liable for any action
taken or omitted to be taken by it in good faith in accordance with the advice
of such counsel, accountants or experts.

 

13.6                        Indemnification
of Agent.

 

To the extent the Agent
is not reimbursed and indemnified by the Credit Parties, each Lender will
reimburse and indemnify the Agent, in proportion to its respective Revolving
Credit Commitment, for and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses
(including counsel fees and disbursements) or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against the
Agent in performing its duties hereunder, in any way relating to or arising out
of this Credit Agreement or any other Credit Documents, provided that no
Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Agent’s gross negligence or willful misconduct
or any action or omission by the Agent not in accordance with the standards of
care specified in the UCP or the UCC, as determined by a court of competent
jurisdiction, or caused by the Agent’s failure to pay under any Letter of
Credit after presentation to it of a request strictly complying with the terms
and conditions of such Letter of Credit, as determined by a court of competent
jurisdiction, unless such payment is prohibited by any law, regulation, court
order or decree.

 

101

 

13.7                        The
Agent in its Individual Capacity.

 

With respect to its
obligation to lend under this Credit Agreement, the Loans made by it and the
Notes issued to it, its participation in Letters of Credit issued hereunder,
and all of its rights and obligations as a Lender hereunder and under the other
Credit Documents, the Agent shall have the same rights and powers hereunder as
any other Lender or holder of a Note or participation interests and may
exercise the same as though it was not performing the duties specified herein;
and the terms “Lenders”, “Required Lenders”, “holders of Notes”, or any similar
terms shall, unless the context clearly otherwise indicates, include the Agent
in its individual capacity.  The Agent
may accept deposits from, lend money to, acquire equity interests in, and
generally engage in any kind of banking, trust, financial advisory or other
business with the Credit Parties or any Affiliate of the Credit Parties as if
it were not performing the duties specified herein, and may accept fees and
other consideration from the Credit Parties for services in connection with
this Credit Agreement and otherwise without having to account for the same with
the Lenders.

 

13.8                        Holders
of Notes.

 

The Agent may deem and
treat the payee of any Note as the owner thereof for all purposes hereof unless
and until a written notice of the assignment or transfer thereof shall have
been filed with the Agent.  Any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is the holder of any Note, shall be
conclusive and binding on any subsequent holder, transferee or assignee of such
Note or of any Note or Notes issued in exchange therefor.

 

13.9                        Resignation
of Agent.

 

The Agent may at any time
give notice of its resignation to the Lenders, the Issuing Bank and the
Borrower.  Upon receipt of any such
notice of resignation, the Required Lenders shall have the right, in
consultation with the Borrower, to appoint a successor, which shall be a Lender
as of the Closing Date or a bank with an office in New York, New York, or an
Affiliate of any such bank with an office in New York, New York, or any other
financial institution with an office in New York, New York that is engaged in
the making of commercial loans and the provision of agency services in
syndicated commercial loan transactions. 
If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within thirty (30) days after
the retiring Agent gives notice of its resignation, then the retiring Agent may
on behalf of the Lenders and the Issuing Bank, appoint a successor Agent
meeting the qualifications set forth above, provided that if the Agent
shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring Agent shall be
discharged from its duties and obligations hereunder and under the other Credit
Documents (except that in the case of any Collateral held by the Agent on
behalf of the Lenders or the Issuing Bank under any of the Credit Documents,
the retiring Agent shall continue to hold such Collateral until such time as a
successor Agent is appointed) and (2) all payments, communications and
determinations provided to be made by, to or through the Agent shall instead be
made by or to each Lender and the Issuing Bank directly, until such time as the
Required Lenders appoint a successor Agent as provided for above in this
Section.  Upon the acceptance of a
successor’s appointment as Agent hereunder, such successor shall succeed to and

 

102

 

become vested with all of
the rights, powers, privileges and duties of the retiring (or retired) Agent,
and the retiring Agent shall be discharged from all of its duties and
obligations hereunder or under the other Credit Documents (if not already
discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a
successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor.  After the retiring Agent’s resignation
hereunder and under the other Credit Documents, the provisions of this Article and
Sections 13.6 and 14.8 shall continue
in effect for the benefit of such retiring Agent, its sub-agents and their
respective Affiliates and the partners, directors, officers, employees, agents
and advisors of such Person and of such Person’s Affiliates in respect of any
actions taken or omitted to be taken by any of them while the retiring Agent
was acting as Agent or continuing to hold Collateral in accordance with this
Section.

 

13.10                 Collateral
Matters.

 

(a)                                  Each
Lender authorizes and directs the Agent to enter into the Security Documents
for the benefit of the Lenders.  Each
Lender authorizes and directs the Agent to make such changes to the form
Landlord Agreement attached hereto as Exhibit C as the Agent deems
necessary in order to obtain any Landlord Agreement from any landlord of any
Credit Party with respect to a leasehold Mortgage.  Each Lender also authorizes and directs the
Agent to review and approve all agreements regarding the Lockboxes and the
Lockbox Accounts (including the Lockbox Accounts Agreements) on such terms as
the Agent deems necessary.  Each Lender
hereby agrees, and each holder of any Note by the acceptance thereof will be
deemed to agree, that, except as otherwise set forth herein, any action taken
by the Required Lenders or each of the Lenders, as applicable, in accordance
with the provisions of this Credit Agreement or the Security Documents, and the
exercise by the Required Lenders or each of the Lenders, as applicable, of the
powers set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of the
Lenders.  The Agent is hereby authorized
on behalf of all of the Lenders, without the necessity of any notice to or
further consent from any Lender, from time to time prior to an Event of
Default, to take any action with respect to any Collateral or Security Document
which may be necessary or appropriate to perfect and maintain perfected the
security interest in and liens upon the Collateral granted pursuant to the
Security Documents.  The rights,
remedies, powers and privileges conferred upon the Agent hereunder and under
the other Credit Documents may be exercised by the Agent without the necessity
of the joinder of any other parties unless otherwise required by applicable
law.

 

(b)                                 The
Lenders hereby authorize the Agent, at its option and in its discretion, to
release any Lien granted to or held by the Agent upon any Collateral (i) upon
the occurrence of all of the Credit and Collateral Termination Events, (ii)
constituting property being sold or disposed of upon receipt of the proceeds of
such sale by the Agent if the applicable Credit Party certifies to the Agent
that the sale or disposition is made in compliance with Section 9.3
(and the Agent may rely conclusively on any such certificate, without further
inquiry) or (iii) if approved, authorized or ratified in writing by the
Required Lenders, unless such release is required to be approved by all of the
Lenders hereunder.  Upon request by the
Agent at any time, the Lenders will confirm in writing the Agent’s authority to
release particular types or items of Collateral pursuant to this Section 13.10(b).

 

103

 

(c)                                  Upon
any sale and transfer of Collateral which is expressly permitted pursuant to
the terms of this Credit Agreement, or consented to in writing by the Required
Lenders or all of the Lenders, as applicable, and upon at least five (5)
Business Days’ prior written request by the applicable Credit Party, the Agent
shall (and is hereby irrevocably authorized by the Lenders to) execute such
documents as may be necessary to evidence the release of the Liens granted to
the Agent for the benefit of the Lenders herein or pursuant hereto upon the
Collateral that was sold or transferred; provided that (i) the Agent
shall not be required to execute any such document on terms which, in the Agent’s
reasonable opinion, would expose the Agent to liability or create any
obligation or entail any consequence other than the release of such Liens
without recourse or warranty and (ii) such release shall not in any manner discharge,
affect or impair the Obligations or any Liens upon (or obligations of such
Credit Party or any of its Restricted Subsidiaries in respect of) all interests
retained by such Credit Party or Restricted Subsidiary, including (without
limitation) the proceeds of the sale, all of which shall continue to constitute
part of the Collateral.  In the event of
any sale or transfer of Collateral, or any foreclosure with respect to any of
the Collateral, the Agent shall be authorized to deduct all of the expenses
reasonably incurred by the Agent from the proceeds of any such sale, transfer
or foreclosure.

 

(d)                                 The
Agent shall have no obligation whatsoever to the Lenders or to any other Person
to assure that the Collateral exists or is owned by the Credit Parties or is
cared for, protected or insured or that the liens granted to the Agent for the
benefit of the Lenders herein or pursuant hereto have been properly or
sufficiently or lawfully created, perfected, protected or enforced or are
entitled to any particular priority, or to exercise or to continue exercising
at all or in any manner or under any duty of care, disclosure or fidelity any
of the rights, authorities and powers granted or available to the Agent in this
Section 13.10 or in any of the Security Documents, it being
understood and agreed that in respect of the Collateral, or any act, omission
or event related thereto, the Agent may act in any manner it may deem
appropriate, in its reasonable discretion, given the Agent’s own interest in
the Collateral as one of the Lenders and that the Agent shall have no duty or
liability whatsoever to the Lenders, except for its gross negligence or willful
misconduct.

 

(e)                                  The
Agent shall promptly, upon receipt thereof, forward to each Lender copies of
the results of any field examinations by the Agent with respect to any Credit
Party and any appraisals obtained by the Agent with respect to any of the
Collateral. The Agent shall have no liability to any Lender for any errors in
or omissions from any field examination or other examination of any Credit
Party or the Collateral, or in any such appraisal, unless such error or
omission was the direct result of the Agent’s gross negligence or willful
misconduct.

 

(f)                                    It
is the purpose of this Credit Agreement that there shall be no violation of any
applicable law denying or restricting the right of financial institutions to
transact business as an agent in any jurisdiction.  It is recognized that, in case of litigation
under any of the Credit Documents, or in case the Agent deems that by reason of
present or future laws of any jurisdiction the Agent might be prohibited from
exercising any of the powers, rights or remedies granted to the Agent or the
Lenders hereunder or under any of the Credit Documents or from holding title to
or a Lien upon any Collateral or from

 

104

 

taking any other
action which may be necessary hereunder or under any of the Credit Documents,
the Agent may appoint an additional Person or Persons as a separate collateral
agent or co-collateral agent which is not so prohibited from taking any of such
actions or exercising any of such powers, rights or remedies.  If the Agent shall appoint an additional
Person as a separate collateral agent or co-collateral agent as provided above,
each and every remedy, power, right, claim, demand or cause of action intended
by this Agreement and any of the Credit Documents and every remedy, power,
right, claim, demand or cause of action intended by this Agreement and any of
the Credit Documents to be exercised by or vested in or conveyed to the Agent
with respect thereto shall be exercisable by and vested in such separate
collateral agent or co-collateral agent, but only to the extent necessary to
enable such separate collateral agent or co-collateral agent to exercise such
powers, rights and remedies, and every covenant and obligation necessary to the
exercise thereof by such separate collateral agent or co-collateral agent shall
run to and be enforceable by any of them. 
Should any instrument from the Lenders be required by the separate
collateral agent or co-collateral agent so appointed by the Agent in order more
fully and certainly to vest in and confirm to him or it such rights, powers,
duties and obligations, any and all of such instruments shall, on request, be
executed, acknowledged and delivered by the Lenders whether or not a Default or
Event of Default then exists.  In case
any separate collateral agent or co-collateral agent, or a successor to either,
shall die, become incapable of acting, resign or be removed, all the estates,
properties, rights, power, duties and obligations of such separate collateral
agent or co-collateral agent, so far as permitted by applicable law, shall vest
in and be exercised by the Agent until the appointment of a new collateral
agent or successor to such separate collateral agent or co-collateral agent.

 

13.11                 Actions with
Respect to Defaults.

 

In addition to the Agent’s
right to take actions on its own accord as permitted under this Credit Agreement,
the Agent shall take such action with respect to a Default or Event of Default
as shall be directed by the Required Lenders or all of the Lenders, as the case
may be; provided that, until the Agent shall have received such
directions, the Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable and in the best interests of the Lenders,
including, without limitation, actions permitted by clause (c) of Section 11.2.

 

13.12                 Delivery
of Information.

 

The Agent shall not be
required to deliver to any Lender originals or copies of any documents,
instruments, notices, communications or other information received by the Agent
from the Credit Parties or any of their Restricted Subsidiaries, the Required
Lenders, any Lender or any other Person under or in connection with this Credit
Agreement or any other Credit Document except (a) as specifically provided in
this Credit Agreement or any other Credit Document and expressly including the
information provided pursuant to Sections 7.1(c), 7.1(e), 7.1(h), 7.1(i) and
7.1(j); and (b) as specifically requested from time to time in writing by
any Lender with respect to a specific document instrument, notice or other
written communication received by and in the possession of the Agent at the
time of receipt of such request and then only in accordance with such specific
request.

 

105

 

13.13                 No Reliance on
Administrative Agent’s Customer Identification Program.

 

Each Lender acknowledges
and agrees that neither such Lender, nor any of its affiliates, Participants
or Assignees, may rely on Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other
obligations required or imposed under or pursuant to the USA Patriot Act or the
regulations thereunder, including the regulations contained in 31 CFR 103.121
(as hereafter amended or replaced, the “CIP Regulations”), or any other
Anti-Terrorism Law, including any programs involving any of the following items
relating to or in connection with the Borrower, its Affiliates or its agents,
the Credit Documents or the transactions hereunder:  (1) any identity verification procedures,
(2) any record keeping, (3) any comparisons with government lists, (4) any
customer notices or (5) any other procedures required under the CIP Regulations
or such other laws.

 

13.14                 USA
Patriot Act.

 

Each Lender or assignee
or participant of a Lender that is not organized under the laws of the United
States of America or a state thereof (and is not excepted from the
certification requirement contained in Section 313 of the USA Patriot Act
and the applicable regulations because it is both (i) an affiliate of a
depository institution or foreign bank that maintains a physical presence in
the United States or foreign country, and (ii) subject to supervision by a
banking authority regulating such affiliated depository institution or foreign
bank) shall deliver to Administrative Agent the certification, or, if
applicable, recertification, certifying that such Lender is not a “shell” and
certifying to other matters as required by Section 313 of the
USA Patriot Act and the applicable regulations:  (1) within ten (10) days after the Closing
Date and (2) at such other times as are required under the USA Patriot Act.

 

ARTICLE XIV

MISCELLANEOUS

 

14.1                        Waivers.

 

The Borrower hereby
waives due diligence, demand, presentment and protest and any notices thereof
as well as notice of nonpayment.  No
delay or omission of the Agent or the Lenders to exercise any right or remedy
hereunder, whether before or after the happening of any Event of Default, shall
impair any such right or shall operate as a waiver thereof or as a waiver of
any such Event of Default.  No single or
partial exercise by the Agent or the Lenders of any right or remedy shall
preclude any other or further exercise thereof, or preclude any other right or
remedy.

 

14.2                        JURY
TRIAL.

 

TO THE EXTENT PERMITTED
BY APPLICABLE LAW, THE BORROWER AND (BY EXECUTION AND DELIVERY OF THE GUARANTY
AGREEMENT OR OF A JOINDER THERETO AND INCORPORATION BY REFERENCE THEREIN) EACH
GUARANTOR, AND THE AGENT AND THE LENDERS EACH HEREBY WAIVE ANY RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF

 

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THIS CREDIT AGREEMENT,
THE CREDIT DOCUMENTS OR ANY OTHER AGREEMENTS OR TRANSACTIONS RELATED HERETO OR
THERETO.

 

14.3                        GOVERNING
LAW; SUBMISSION TO JURISDICTION; VENUE.

 

(a)                                  THIS
CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THE CHOICE OF LAW PROVISIONS THEREOF other than Section 5-1401
of the New York General Obligations Law. 
Any legal action or proceeding with respect to this Credit Agreement or
any other Credit Document shall be brought in the courts of the State of New
York in New York County or of the United States for the Southern District of
New York, and, by execution and delivery of this Credit Agreement the Borrower,
and by execution and delivery of the Guaranty Agreement or of a joinder thereto
and incorporation by reference therein each of the Guarantors, hereby
irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the nonexclusive jurisdiction of such courts, and agrees to be
bound by the other provisions set forth in this Section 14.3.  Each of the Credit Parties further
irrevocably consents to the service of process out of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to it at the address set out for
notices pursuant to Section 14.4, such service to become effective
three (3) days after such mailing. 
Nothing herein shall affect the right of the Agent or any Lender to
serve process in any other manner permitted by law or to commence legal
proceedings or to otherwise proceed against any Credit Party in any other
jurisdiction.

 

(b)                                 Each
of the Credit Parties hereby irrevocably waives any objection which it may now
or hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Credit Agreement or any
other Credit Document brought in the courts referred to in subsection (a)
above and hereby further irrevocably waives and agrees not to plead or claim in
any such court that any such action or proceeding brought in any such court has
been brought in an inconvenient forum.

 

14.4                        Notices.

 

Except as otherwise
expressly provided herein, all notices, requests and other communications shall
have been duly given and shall be effective (a) when delivered by hand,
(b) when transmitted via telecopy (or other facsimile device),
(c) the Business Day following the day on which the same has been
delivered prepaid to a reputable national overnight air courier service, or (d)
the fifth Business Day following the day on which the same is sent by certified
or registered mail, postage prepaid, in each case to the respective parties at
the address or telecopy numbers set forth on Schedule 14.4 attached
hereto, or at such other address as such party may specify by written notice to
the other parties hereto; provided, however, that if any notice
is delivered on a day other than a Business Day, or after 5:00 P.M. on any
Business Day, then such notice shall not be effective until the next Business
Day.

 

107

 

14.5                        Assignability.

 

(a)                                  The
Borrower shall not have the right to assign this Credit Agreement or any
interest therein except with the prior written consent of the Lenders.

 

(b)                                 Notwithstanding
subsection (c) of this Section 14.5, nothing herein shall
restrict, prevent or prohibit any Lender from (i) pledging its Loans
hereunder to a Federal Reserve Bank in support of borrowings made by such
Lender from such Federal Reserve Bank or (ii) granting assignments or
participations in such Lender’s Loans and/or Revolving Credit Commitments
hereunder to any Approved Assignee.  Any
Lender may make, carry or transfer Loans at, to or for the account of, any of
its branch offices or the office of an affiliate of such Lender except to the
extent such transfer would result in increased costs to the Borrower.

 

(c)                                  Any
Lender may, in the ordinary course of its lending business and in accordance
with applicable law, at any time, assign to any Approved Assignee and, with the
consent of the Agent and, so long as no Event of Default is in existence, the
Borrower (such consent not to be unreasonably withheld or delayed) and
concurrent notice to the Borrower, but without the consent of any other Lender,
assign to one or more other Eligible Assignees all or a portion of its rights
and obligations under this Credit Agreement and any Notes held by it; provided,
however, that (i) any such assignment of a portion must be for a
constant and non varying portion of its Loans and Revolving Credit Commitments,
 (ii) for each such assignment, the parties thereto shall execute and
deliver to the Agent, for its acceptance and recording in the Register (as
defined below), an Assignment and Acceptance, together with any Note or Notes
subject to such assignment and a processing and recordation fee of $3,500 to be
paid by the assignee, (iii) no such assignment shall be for less than
$5,000,000 or, if less, the entire remaining Revolving Credit Commitments of
such Lender of the Revolving Credit Commitments (or, with respect to Swing
Loans, 100% thereof and of the commitment to make Swing Loans) and (iv) if
such assignee is a Foreign Lender, all of the requirements of Section 2.6(b)
shall have been satisfied as a condition to such assignment; and provided,
further, that any assignment to an Approved Assignee shall not be
subject to the minimum assignment amounts specified herein.  Upon such execution and delivery of the
Assignment and Acceptance to the Agent, from and after the Acceptance Date,
(x) the assignee thereunder shall be a party hereto, and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, such assignee shall have the rights and obligations
of a Lender hereunder and (y) the assignor thereunder shall, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than any rights it may
have pursuant to Section 14.7 which will survive) and be released
from its obligations under this Credit Agreement (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Credit Agreement, such Lender shall
cease to be a party hereto).

 

(d)                                 By
executing and delivering an Assignment and Acceptance, the assignee thereunder
confirms and agrees as follows: (i) other than as provided in such
Assignment and Acceptance, the assigning Lender makes no representation or warranty
and assumes no responsibility with respect to any statements, warranties or
representations made in or

 

108

 

in connection with
this Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Credit Agreement, the Notes or any
other instrument or document furnished pursuant hereto, (ii) such
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Credit Parties or
the performance or observance by the Credit Parties of any of its obligations
under this Credit Agreement or any of the other Credit Documents or any other
instrument or document furnished pursuant hereto or thereto, (iii) such
assignee confirms that it has received a copy of this Credit Agreement,
together with copies of the financial statements referred to in Section 7.1
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into such Assignment and
Acceptance, (iv) such assignee will, independently and without reliance
upon the Agents, such assigning Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this Credit
Agreement, (v) such assignee appoints and authorizes the Agents to take
such action as agent on its behalf and to exercise such powers under this Credit
Agreement and the other Credit Documents as are delegated to the Agents by the
terms hereof, together with such powers as are reasonably incidental thereto
and (vi) such assignee agrees that it will perform in accordance with
their terms all of the obligations which by the terms of this Credit Agreement
are required to be performed by it as a Lender.

 

(e)                                  The
Agent shall maintain at its address referred to in Section 14.4 a
copy of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the
Revolving Credit Commitments of, and principal amount of the Loans owing to,
each Lender from time to time (the “Register”).  The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agents and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this Credit
Agreement.  The Register and copies of
each Assignment and Acceptance shall be available for inspection by the
Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

 

(f)                                    Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender,
together with any Note or Notes subject to such assignment, the Agent shall, if
such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit A, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrower.  Within five (5) Business Days after its
receipt of such notice, if requested by the assignee, the Borrower shall
execute and deliver to the Agent in exchange for any surrendered Note or Notes
(which the assigning Lender agrees to promptly deliver to the Borrower) a new
Note or Notes to the order of the assignee in an amount equal to the Revolving
Credit Commitment or Revolving Credit Commitments (and commitment to make Swing
Loans, if applicable) assumed by it pursuant to such Assignment and Acceptance
and, if the assigning Lender has retained a Revolving Credit Commitment or
Revolving Credit Commitments hereunder and if requested by it, a new Note or
Notes to the order of the assigning Lender in an amount equal to the Revolving
Credit Commitment or Revolving Credit Commitments retained by it
hereunder.  Any such new Note or Notes
shall re-evidence the indebtedness outstanding under any old Notes or

 

109

 

Notes and shall be
in an aggregate principal amount equal to the aggregate principal amount of any
such surrendered Note or Notes (or if none, the amount of the Revolving Credit
Commitments so assigned), shall be dated the Closing Date and shall otherwise
be in substantially the form of any Note or Notes subject to such assignments.

 

(g)                                 Each
Lender may sell participations, without the consent of the Agent, the Borrower
(as to any Person, other than a fund, that would be an Eligible Assignee for an
assignment) any other Lender, to one or more parties in or to all or a portion
of its rights and obligations under this Credit Agreement (including, without
limitation, all or a portion of its Revolving Credit Commitments, the Loans
owing to it and any Note or Notes held by it); provided that
(i) such Lender’s obligations under this Credit Agreement (including,
without limitation, its Revolving Credit Commitments to the Borrower hereunder)
shall remain unchanged, (ii) such Lender shall remain solely responsible
to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Note for all
purposes of this Credit Agreement, (iv) the Borrower, the Agent, and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Credit
Agreement and (v) such Lender shall not transfer, grant, assign or sell
any participation under which the participant shall have rights to approve any
amendment or waiver of this Credit Agreement except to the extent such
amendment or waiver would (A) extend the final maturity date or the date
for the payments of any installment of fees or principal or interest of any
Loans or Letter of Credit reimbursement obligations in which such participant
is participating, (B) reduce the amount of any installment of principal of
the Loans or Letter of Credit reimbursement obligations in which such
participant is participating, (C) except as otherwise expressly provided
in this Credit Agreement, reduce the interest rate applicable to the Loans or
Letter of Credit reimbursement obligations in which such participant is
participating, or (D) except as otherwise expressly provided in this
Credit Agreement, reduce any Fees payable hereunder.

 

(h)                                 Each
Lender agrees that, without the prior written consent of the Borrower and the
Agents, it will not make any assignment or sell a participation hereunder in
any manner or under any circumstances that would require registration or
qualification of, or filings in respect of, any Loan, Note or other Obligation
under the securities laws of the United States of America or of any
jurisdiction.

 

(i)                                     In
connection with the efforts of any Lender to assign its rights or obligations
or to participate interests, such Lender may disclose any information in its
possession regarding the Borrower or any of its Restricted Subsidiaries.

 

14.6                        Information.

 

Each Lending Party agrees
to keep confidential any information furnished or made available to it by the
Borrower pursuant to this Credit Agreement that is marked confidential; provided
that nothing herein shall prevent any Lending Party from disclosing such
information (a) to any other Lending Party or any affiliate of any Lending
Party, or any officer, director, employee, agent, or advisor of any Lending
Party or affiliate of any Lending Party, (b) to any other Person if reasonably
incidental to the administration of the credit facility provided herein, (c) as
required by any law, rule, or regulation, (d) upon the order of any court or
administrative

 

110

 

agency, (e) upon the
request or demand of any regulatory agency or authority; provided, however, that, to the
extent permitted by law, the affected Lending Party shall provide prior written
notice to the affected Borrower of any such request or demand, (f) that is or
becomes available to the public or that is or becomes available to any Lending
Party other than as a result of a disclosure by any Lending Party prohibited by
this Credit Agreement, (g) in connection with any litigation to which such
Lending Party or any of its affiliates may be a party, whether to defend
itself, reduce its liability, protect or exercise any of its claims, rights, remedies
or interests under or in connection with the Credit Documents or any Lender
Hedging Agreement, or otherwise, (h) to the extent necessary in connection with
the exercise of any remedy under this Credit Agreement or any other Credit
Document, (i) subject to provisions substantially similar to those contained in
this Section 14.6, to any actual or proposed participant or
assignee or any actual or prospective counterparty (or its advisors) to any
securitization, swap or derivative transaction relating to the Borrower, any
other Credit Party, and the Obligations, and (j) to Gold Sheets and
other similar bank trade publications; such information to consist of deal
terms and other information customarily found in such publications.

 

14.7                        Payment
of Expenses; Indemnification.

 

The Borrower agrees to:
(a) pay all reasonable out-of-pocket costs and expenses of (i) the Agent in
connection with (A) the syndication, negotiation, preparation, execution,
delivery, administration and monitoring of this Credit Agreement and the other
Credit Documents and the documents and instruments referred to therein or
executed in connection therewith, including evaluating the compliance by the
Credit Parties with law and the provisions of such documents, including,
without limitation, the reasonable fees and expenses of special counsel to the
Agent, the reasonable fees and expenses of counsel for the Agent in connection
with collateral issues and all due diligence, and the costs and expenses
incurred in connection with all appraisals, field exams, and of obtaining all
Real Property Documentation, and all recording costs, fees and taxes payable in
connection with the Collateral, and (B) any amendment, waiver or consent
relating hereto and thereto including, without limitation, any such amendments,
waivers or consents resulting from or related to any work-out, re-negotiation
or restructure relating to the performance by any of the Credit Parties under
this Credit Agreement or any other Credit Documents and (ii) the Agent and the
Lenders in connection with enforcement of the Credit Documents and the
documents and instruments referred to therein or executed in connection
therewith, including but not limited to, any work-out, re-negotiation or
restructure relating to the performance by any of the Credit Parties under this
Credit Agreement or any other Credit Documents, including, without limitation,
in connection with any such enforcement upon receipt of a correct invoice, the
reasonable fees and disbursements of counsel for the Agent and each of the
Lenders (including the allocated costs of internal counsel), and the reasonable
fees and expenses of a financial consultant engaged by the Agent or its counsel
in connection with the foregoing.  The
Borrower shall indemnify, defend and hold harmless the Agent, Wachovia Capital
Markets, LLC (in its capacity as arranger), the Issuing Bank and each of the
Lenders and their respective directors, officers, agents, employees and counsel
from and against (x) any and all losses, claims, damages, liabilities,
deficiencies, judgments or expenses incurred by any of them (except to the
extent that it is finally judicially determined to have resulted from their own
gross negligence or willful misconduct) arising out of or by reason of any
litigation, investigation, claim or proceeding which arises out of or is in any
way related to (i) this Credit Agreement, any Letter of Credit or any other
Credit Documents or the transactions contemplated hereby or thereby, (ii) any
actual or proposed use by the Borrower of the proceeds of the Loans

 

111

 

or (iii) the Agent’s, the
Issuing Bank’s or the Lenders’ entering into this Credit Agreement, the other
Credit Documents or any other agreements and documents relating hereto, including,
without limitation, amounts paid in settlement, court costs and the fees and
disbursements of counsel incurred in connection with any such litigation,
investigation, claim or proceeding or any advice rendered in connection with
any of the foregoing and (y) any such losses, claims, damages, liabilities,
deficiencies, judgments or expenses (except to the extent that any of the
foregoing are finally judicially determined to have resulted from their own
gross negligence or willful misconduct)incurred in connection with any remedial
or other action taken by the Borrower or any of the Lenders in connection with
compliance by the Borrower or any of its Restricted Subsidiaries, or any of
their respective properties, with any federal, state or local environmental
laws, acts, rules, regulations, orders or ordinances.  If and to the extent that the obligations of
the Borrower hereunder are unenforceable for any reason, such Borrower hereby
agrees to make the maximum contribution to the payment and satisfaction of such
obligations which is permissible under applicable law.  The Borrower’s obligations under this Section 14.8
shall survive any termination of this Credit Agreement and the other Credit
Documents and the payment in full of the Obligations, and are in addition to,
and not in substitution of, any other of their Obligations set forth in this
Credit Agreement.  In addition, the
Borrower shall, upon demand, pay to the Agent and any Lender all costs and
expenses (including the reasonable fees and disbursements of counsel and other
professionals) paid or incurred by the Agent, the Issuing Bank or such Lender
in (A) enforcing or defending its rights under or in respect of this Credit
Agreement, the other Credit Documents or any other document or instrument now or
hereafter executed and delivered in connection herewith, (B) in collecting the
Loans, (C) in foreclosing or otherwise collecting upon the Collateral or any
part thereof and (D) obtaining any legal, accounting or other advice in
connection with any of the foregoing.

 

14.8                        Entire
Agreement, Successors and Assigns.

 

This Credit Agreement
along with the other Credit Documents and the Fee Letter constitutes the entire
agreement among the Credit Parties, the Agent and the Lenders, supersedes any
prior agreements among them, and shall bind and benefit the Credit Parties and
the Lenders and their respective successors and permitted assigns.

 

14.9                        Amendments,
Etc.

 

Neither the amendment or
waiver of any provision of this Credit Agreement or any other Credit Document,
nor the consent to any departure by any Credit Party therefrom, shall in any
event be effective unless the same shall be in writing and signed by the
Required Lenders, or if the Lenders shall not be parties thereto, by the
parties thereto and consented to by the Required Lenders and (so long as no
Event of Default has occurred and is continuing) the Borrower, and each such
amendment, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided that no
amendment, waiver or consent shall unless in writing and signed by all the
Lenders, do any of the following: (a) increase the Revolving Credit Commitments
of the Lenders or subject the Lenders to any additional obligations, (b) except
as otherwise expressly provided in this Credit Agreement, reduce the principal
of, or interest on, any Loan or Note or any Letter of Credit reimbursement
obligations or any fees hereunder, (c) postpone any date fixed for any payment
or mandatory prepayment in respect of principal of, or interest on, any Loan or
Note or any Letter of Credit reimbursement obligations or any fees hereunder,
(d) change the percentage of the Revolving Credit

 

112

 

Commitments, or any
minimum requirement necessary for the Lenders or the Required Lenders to take
any action hereunder, (e) amend or waive Section 2.2(b), Section 2.7,
Section 2.8, Section 13.6 or this Section 14.9,
or change the definition of Required Lenders, (f) except as otherwise expressly
provided in this Credit Agreement, and other than in connection with the
financing, refinancing, sale or other disposition of any asset of the Credit
Parties permitted under this Credit Agreement, release any Liens in favor of
the Lenders on any material portion of the
Collateral, (g) except as expressly permitted hereunder, release any Credit
Party from its obligations hereunder or under the Guaranty and the other Credit
Documents to which it is a party or (h) increase the advance rates used to calculate
the Borrowing Base or modify the definition of Borrowing Base and, provided,
further, that no amendment, waiver or consent affecting the rights or
duties of the Agent or the Issuing Bank under any Credit Document shall in any
event be effective, unless in writing and signed by the Agent or of Wachovia
with respect to Swing Loans and/or the Issuing Bank or Wachovia, as applicable,
in addition to the Lenders required hereinabove to take such action.  Notwithstanding any of the foregoing to the
contrary, the consent of the Borrower shall not be required for any amendment,
modification or waiver of the provisions of Article XIII (other
than the provisions of Section 13.9).  In addition, the Borrower and the Lenders
hereby authorize the Agent to modify this Credit Agreement by unilaterally
amending or supplementing Schedule 1.1A from time to time in the
manner requested by the Borrower, the Agent or any Lender in order to reflect
any assignments or transfers of the 
Loans as provided for hereunder; provided, however, that
the Agent shall promptly deliver a copy of any such modification to the
Borrower and each Lender.

 

14.10                 Nonliability
of Agent and Lenders.

 

The relationship between
the Borrower on the one hand and the Lenders and the Agent on the other hand
shall be solely that of borrower and lender. 
Neither the Agent nor any Lender shall have any fiduciary
responsibilities to the Borrower. 
Neither the Agent nor any Lender undertakes any responsibility to the
Borrower to review or inform such Borrower of any matter in connection with any
phase of such Borrower’s business or operations.

 

14.11                 Independent
Nature of Lenders’ Rights.

 

The amounts payable at
any time hereunder to each Lender on account of such Lender’s Loans and under
any Note or Notes held by it shall be a separate and independent debt.

 

14.12                 Counterparts.

 

This Credit Agreement may
be executed in any number of counterparts and by the different parties hereto
in separate counterparts, each of which when so executed and delivered shall be
an original, but all of which shall together constitute one and the same
instrument.

 

14.13                 Effectiveness.

 

This Credit Agreement
shall become effective at such time when all of the conditions set forth in Section 5.2
have been satisfied or waived by the Lenders and it shall have been
executed by the Borrower and the Agent, and the Agent shall have received
copies hereof (telefaxed or otherwise) which, when taken together, bear the
signatures of each Lender, and thereafter this Credit

 

113

 

Agreement shall be
binding upon and inure to the benefit of each Credit Party, the Agent and each
Lender and their respective successors and assigns.

 

14.14                 Severability.

 

In case any provision in
or obligation under this Credit Agreement or any Notes or the other Credit
Documents shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

14.15                 Headings
Descriptive.

 

The headings of the
several Sections and subsections of this Credit Agreement, and the Table of
Contents, are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Credit Agreement.

 

14.16                 Maximum
Rate.

 

Notwithstanding anything
to the contrary contained elsewhere in this Credit Agreement or in any other
Credit Document, the Borrower, the Agent and the Lenders hereby agree that all
agreements among them under this Credit Agreement and the other Credit
Documents, whether now existing or hereafter arising and whether written or
oral, are expressly limited so that in no contingency or event whatsoever shall
the amount paid, or agreed to be paid, to the Agent or any Lender for the use,
forbearance, or detention of the money loaned to the Borrower and evidenced
hereby or thereby or for the performance or payment of any covenant or
obligation contained herein or therein, exceed the Highest Lawful Rate.  If due to any circumstance whatsoever,
fulfillment of any provisions of this Credit Agreement or any of the other
Credit Documents at the time performance of such provision shall be due shall
exceed the Highest Lawful Rate, then, automatically, the obligation to be
fulfilled shall be modified or reduced to the extent necessary to limit such
interest to the Highest Lawful Rate, and if from any such circumstance any
Lender should ever receive anything of value deemed interest by applicable law
which would exceed the Highest Lawful Rate, such excessive interest shall be
applied to the reduction of the principal amount then outstanding hereunder or
on account of any other then outstanding Obligations and not to the payment of
interest, or if such excessive interest exceeds the principal unpaid balance
then outstanding hereunder and such other then outstanding Obligations, such
excess shall be refunded to the applicable Borrower.  All sums paid or agreed to be paid to the
Agent or any Lender for the use, forbearance, or detention of the Obligations
and other indebtedness of the Borrower to the Agent or any Lender shall, to the
extent permitted by applicable law, be amortized, prorated, allocated and
spread throughout the full term of such indebtedness until payment in full so
that the actual rate of interest on account of all such indebtedness does not
exceed the Highest Lawful Rate throughout the entire term of such
indebtedness.  The terms and provisions
of this Section shall control every other provision of this Credit
Agreement and all agreements among the Borrower, the Agent and the Lenders.

 

14.17                 Right
of Setoff.

 

In addition to and not in
limitation of all rights of offset that any Lender or other holder of a  Note may have under applicable law, each
Lender or other holder of a Loan or Note shall, if

 

114

 

any Event of Default has
occurred and is continuing and whether or not such Lender or such holder has
made any demand or the Obligations of the Borrower are matured, have the right
to appropriate and apply to the payment of the Obligations of such Borrower all
deposits (general or special, time or demand, provisional or final) then or
thereafter held by and other indebtedness or property then or thereafter owing
by such Lender or other holder, including, without limitation, any and all
amounts in the Cash Concentration Account. 
Any amount received as a result of the exercise of such rights shall be
reallocated among the Lenders as set forth in Section 3.8.

 

14.18                 Delegation
of Authority.

 

Each Guarantor (by
execution and delivery of the Guaranty Agreement or of a joinder thereto and
incorporation by reference therein) hereby authorizes and appoints the Borrower
and each of the Responsible Officers of the Borrower, to be its attorneys (“its
Attorneys”) and in its name and on its behalf and as its act and deed or
otherwise to execute and deliver all documents and carry out all such acts as
are necessary or appropriate in connection with borrowing Loans and the making
of other extensions of credit hereunder, the granting and perfection of
security interests under the Security Documents, and complying with the terms
and provisions hereof and the other Credit Documents.  This delegation of authority and appointment
shall be valid for the duration of the term of this Credit Agreement; provided,
however, that such delegation of authority and appointment shall
terminate automatically without any further act with respect to any Responsible
Officer if such Responsible Officer is no longer an employee of the
Borrower.  Each Restricted Subsidiary
Borrower and (by execution and delivery of the Guaranty Agreement or of a
joinder thereto and incorporation by reference therein) each Guarantor hereby
undertakes to ratify everything which any of its Attorneys shall do in
furtherance of this delegation of authority and appointment.

 

14.19                 Release.  
Each of the Credit Parties each hereby releases the Agent, the Lenders,
and the Agent’s and the Lenders’ respective directors, officers, employees,
representatives, agents, counsel and advisors from any and all actions, causes
of action, claims, demands, damages and liabilities of whatever kind or nature,
in law or in equity, now known or unknown, suspected or unsuspected to the
extent that any of the foregoing arises from any action or failure to act on or
prior to the date hereof under the Original Credit Agreement

 

115

 

 

IN WITNESS WHEREOF the
parties hereto have caused this Credit Agreement to be executed and delivered
by their proper and duly authorized officers as of the date set forth above.

 

	
  BORROWER:

  	
  TRANSMONTAIGNE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick W. Boutin

  	
   

  
	
   

  	
  Name:

  	
  Frederick W. Boutin

  
	
   

  	
  Title:

  	
  SVP & Treasurer

  
					

 

116

 

	
  AGENT AND LENDERS:

  	
  WACHOVIA BANK,

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dan Denton

  	
   

  
	
   

  	
  Name:

  	
  Dan Denton

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  191 Peachtree
  Street, N.E.

  
	
   

  	
   

  	
  Atlanta, GA
  30303

  
	
   

  	
   

  	
  Attn: Betty
  Eberhardt

  
	
   

  	
   

  	
  Telephone: 404-332-6452

  
	
   

  	
   

  	
  Facsimile: 404-332-6977

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  191 Peachtree
  Street, N.E.

  
	
   

  	
   

  	
  Atlanta, GA
  30303

  
	
   

  	
   

  	
  Attn: Betty
  Eberhardt

  
	
   

  	
   

  	
  Telephone: 404-332-6452

  
	
   

  	
   

  	
  Facsimile: 404-332-6977

  
						

 

117

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
  as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Richard Hawk

  	
   

  
	
   

  	
  Name:

  	
  J. Richard Hawk

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  120 South
  LaSalle Street

  
	
   

  	
   

  	
  Mail Code: IL1-1190

  
	
   

  	
   

  	
  Chicago, IL
  60603

  
	
   

  	
   

  	
  Attn: Wei Shen

  
	
   

  	
   

  	
  Telephone: 312-661-5622

  
	
   

  	
   

  	
  Facsimile: 312-661-9604

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  120 South
  LaSalle Street

  
	
   

  	
   

  	
  Mail Code: IL1-1190

  
	
   

  	
   

  	
  Chicago, IL
  60603

  
	
   

  	
   

  	
  Attn: Wei Shen

  
	
   

  	
   

  	
  Telephone: 312-661-5622

  
	
   

  	
   

  	
  Facsimile: 312-661-9604

  
						

 

118

 

	
   

  	
  UBS AG, Stamford Branch,

  
	
   

  	
  as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Wilfred V. Saint

  	
   

  	
  By:

  	
   /s/ Joselin Fernandes

  	
   

  
	
  Name:

  	
  Wilfred V. Saint

  	
  Name:

  	
   Joselin Fernandes

  
	
  Title:

  	
  Director

  	
  Title:

  	
   Associate Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  677 Washington
  Boulevard

  
	
   

  	
   

  	
  Stamford, CT
  06901

  
	
   

  	
   

  	
  Attn: Barbara
  Ezell-McMichael

  
	
   

  	
   

  	
  Telephone: 203-719-0473

  
	
   

  	
   

  	
  Facsimile: 203-719-3888

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  677 Washington
  Boulevard

  
	
   

  	
   

  	
  Stamford, CT
  06901

  
	
   

  	
   

  	
  Attn: Barbara
  Ezell-McMichael

  
	
   

  	
   

  	
  Telephone: 203-719-0473

  
	
   

  	
   

  	
  Facsimile: 203-719-3888

  
							

 

119

 

	
   

  	
  SOCIETE GENERALE,

  
	
   

  	
  as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Emmanuel Chesneau

  	
   

  	
  By:

  	
  /s/ Chung-Taek Oh

  	
   

  
	
  Name:

  	
  Emmanuel Chesneau

  	
  Name:

  	
  Chung-Taek Oh

  
	
  Title:

  	
  Director

  	
  Title:

  	
  Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  560 Lexington
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10022

  
	
   

  	
   

  	
  Attn: Carmen
  Espinal

  
	
   

  	
   

  	
  Telephone: 212-278-7048

  
	
   

  	
   

  	
  Facsimile: 212-278-7343

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  560 Lexington
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10022

  
	
   

  	
   

  	
  Attn: Carmen
  Espinal

  
	
   

  	
   

  	
  Telephone: 212-278-7048

  
	
   

  	
   

  	
  Facsimile: 212-278-7343

  
							

 

120

 

	
   

  	
  WELLS FARGO FOOTHILL, LLC,

  
	
   

  	
  as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis King

  	
   

  
	
   

  	
  Name:

  	
  Dennis King

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2450 Colorado
  Ave., St. 3000 West

  
	
   

  	
   

  	
  Santa Monica, CA
  90404

  
	
   

  	
   

  	
  Attn: Lalaine
  Pechayco

  
	
   

  	
   

  	
  Telephone: 310-453-7280

  
	
   

  	
   

  	
  Facsimile: 310-453-7422

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2450 Colorado
  Ave., St. 3000 West

  
	
   

  	
   

  	
  Santa Monica, CA
  90404

  
	
   

  	
   

  	
  Attn: Lalaine
  Pechayco

  
	
   

  	
   

  	
  Telephone: 310-453-7280

  
	
   

  	
   

  	
  Facsimile: 310-453-7422

  
					

 

121

 

	
   

  	
  BNP PARIBAS,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Zali Win

  	
   

  	
  By:

  	
   /s/ Keith Cox

  	
   

  
	
  Name:

  	
   Zali Win

  	
  Name:

  	
   Keith Cox

  
	
  Title:

  	
   Managing Director

  	
  Title:

  	
   Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  787 Seventh Ave.

  
	
   

  	
   

  	
  New York, NY
  10019

  
	
   

  	
   

  	
  Attn: Meredith
  Cook

  
	
   

  	
   

  	
  Telephone: 212-841-2098

  
	
   

  	
   

  	
  Facsimile: 212-841-2536

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  787 Seventh Ave.

  
	
   

  	
   

  	
  New York, NY
  10019

  
	
   

  	
   

  	
  Attn: Meredith
  Cook

  
	
   

  	
   

  	
  Telephone: 212-841-2098

  
	
   

  	
   

  	
  Facsimile: 212-841-2536

  
							

 

122

 

	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Chiu

  	
   

  
	
   

  	
  Name:

  	
  Jeffrey Chiu

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  350 S. Beverly
  Drive, Suite 200

  
	
   

  	
   

  	
  Beverly Hills,
  CA 90212

  
	
   

  	
   

  	
  Attn:

  	
  Account Manager

  
	
   

  	
   

  	
   

  	
  (TransMontaigne)

  
	
   

  	
   

  	
  Telephone: 310-203-0335

  
	
   

  	
   

  	
  Facsimile: 310-785-0644

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  350 S. Beverly
  Drive, Suite 200

  
	
   

  	
   

  	
  Beverly Hills,
  CA 90212

  
	
   

  	
   

  	
  Attn:

  	
  Account Manager

  
	
   

  	
   

  	
   

  	
  (TransMontaigne)

  
	
   

  	
   

  	
  Telephone: 310-203-0335

  
	
   

  	
   

  	
  Facsimile: 310-785-0644

  
							

 

123

 

	
   

  	
  SUNTRUST BANK NA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Pickering

  	
   

  
	
   

  	
  Name:

  	
  Mark Pickering

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  303 Peachtree
  Street, 3rd Floor

  
	
   

  	
   

  	
  Atlanta, GA
  30308

  
	
   

  	
   

  	
  Attn: Monica
  Young

  
	
   

  	
   

  	
  Telephone: 404-588-8629

  
	
   

  	
   

  	
  Facsimile: 404-230-5307

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  303 Peachtree
  Street, 3rd Floor

  
	
   

  	
   

  	
  Atlanta, GA
  30308

  
	
   

  	
   

  	
  Attn: Monica
  Young

  
	
   

  	
   

  	
  Telephone: 404-588-8629

  
	
   

  	
   

  	
  Facsimile: 404-230-5307

  
					

 

124

 

	
   

  	
  LASALLE BANK NATIONAL

  ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nate Palmer

  	
   

  
	
   

  	
  Name:

  	
  Nate Palmer

  
	
   

  	
  Title:

  	
  AVP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  One North
  Brentwood, Suite 950

  
	
   

  	
   

  	
  St. Louis, MO
  63105

  
	
   

  	
   

  	
  Attn: Kim Admire

  
	
   

  	
   

  	
  Telephone: 314-613-1908

  
	
   

  	
   

  	
  Facsimile: 314-621-1612

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  One North
  Brentwood, Suite 950

  
	
   

  	
   

  	
  St. Louis, MO
  63105

  
	
   

  	
   

  	
  Attn: Kim Admire

  
	
   

  	
   

  	
  Telephone: 314-613-1908

  
	
   

  	
   

  	
  Facsimile: 314-621-1612

  
					

 

125

 

	
   

  	
  MERRILL LYNCH CAPITAL, a Division of

  Merrill Lynch Business Financial Services Inc.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Betz

  	
   

  
	
   

  	
  Name:

  	
  James Betz

  
	
   

  	
  Title:

  	
  VP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  222 North
  LaSalle

  
	
   

  	
   

  	
  Chicago, IL
  60601

  
	
   

  	
   

  	
  Attn: Shirley
  Winters

  
	
   

  	
   

  	
  Telephone: 312-750-6143

  
	
   

  	
   

  	
  Facsimile: 312-499-3336

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  222 North
  LaSalle

  
	
   

  	
   

  	
  Chicago, IL
  60601

  
	
   

  	
   

  	
  Attn: Shirley
  Winters

  
	
   

  	
   

  	
  Telephone: 312-750-6143

  
	
   

  	
   

  	
  Facsimile: 312-499-3336

  
					

 

126

 

	
   

  	
  NATIONAL CITY BUSINESS CREDIT, INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Hanes

  	
   

  
	
   

  	
  Name:

  	
  Jason Hanes

  
	
   

  	
  Title:

  	
  Senior Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1965 East 6th
  Street

  
	
   

  	
   

  	
  Suite 400
  Locator 3049

  
	
   

  	
   

  	
  Cleveland, OH
  44114

  
	
   

  	
   

  	
  Attn: Jason
  Hanes

  
	
   

  	
   

  	
  Telephone: 216-222-9508

  
	
   

  	
   

  	
  Facsimile: 216-222-9555

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1965 East 6th
  Street

  
	
   

  	
   

  	
  Suite 400
  Locator 3049

  
	
   

  	
   

  	
  Cleveland, OH
  44114

  
	
   

  	
   

  	
  Attn: Jason
  Hanes

  
	
   

  	
   

  	
  Telephone: 216-222-9508

  
	
   

  	
   

  	
  Facsimile: 216-222-9555

  
					

 

127

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul R. Frank

  	
   

  
	
   

  	
  Name:

  	
  Paul R. Frank

  
	
   

  	
  Title:

  	
  S.V.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2 Tower Center,
  8th Floor

  
	
   

  	
   

  	
  East Brunswick,
  NJ 08816

  
	
   

  	
   

  	
  Attn: Gurdatt
  Jagnanan

  
	
   

  	
   

  	
  Telephone: 732-220-4302

  
	
   

  	
   

  	
  Facsimile: 732-220-4395

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2 Tower Center,
  8th Floor

  
	
   

  	
   

  	
  East Brunswick,
  NJ 08816

  
	
   

  	
   

  	
  Attn: Gurdatt
  Jagnanan

  
	
   

  	
   

  	
  Telephone: 732-220-4302

  
	
   

  	
   

  	
  Facsimile: 732-220-4395

  
					

 

128

 

	
   

  	
  ALLIED IRISH BANKS, p.l.c.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin S. Chin

  	
   

  
	
   

  	
  Name:

  	
  Martin S. Chin

  
	
   

  	
  Title:

  	
  VP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Corporation
  Operations,

  
	
   

  	
   

  	
  Iona Building -
  Block A

  
	
   

  	
   

  	
  152 Shelbourne
  Road

  
	
   

  	
   

  	
  Ballsbridge,
  Dublin 4, IRELAND

  
	
   

  	
   

  	
  Attn: Niamh
  Colreavy

  
	
   

  	
   

  	
  Telephone: (011-353-1)
  641-6632

  
	
   

  	
   

  	
  Facsimile: (011-353-1)
  608-9795

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  Corporation
  Operations,

  
	
   

  	
   

  	
  Iona Building -
  Block A

  
	
   

  	
   

  	
  152 Shelbourne
  Road

  
	
   

  	
   

  	
  Ballsbridge,
  Dublin 4, IRELAND

  
	
   

  	
   

  	
  Attn: Niamh
  Colreavy

  
	
   

  	
   

  	
  Telephone: (011-353-1)
  641-6632

  
	
   

  	
   

  	
  Facsimile: (011-353-1)
  608-9795

  
					

 

129

 

 

	
   

  	
  FLEET NATIONAL BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Brochetti

  	
   

  
	
   

  	
  Name:

  	
  Michael J. Brochetti

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  100 Federal
  Street

  
	
   

  	
   

  	
  Boston, MA 02110

  
	
   

  	
   

  	
  Attn: Francia
  Castillo

  
	
   

  	
   

  	
  Telephone: 617-434-5092

  
	
   

  	
   

  	
  Facsimile: 617-434-0201

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  100 Federal
  Street

  
	
   

  	
   

  	
  Boston, MA 02110

  
	
   

  	
   

  	
  Attn: Francia
  Castillo

  
	
   

  	
   

  	
  Telephone: 617-434-5092

  
	
   

  	
   

  	
  Facsimile: 617-434-0201

  
					

 

130

 

	
   

  	
  SIEMENS FINANCIAL SERVICES, INC.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Amodio

  	
   

  
	
   

  	
  Name:

  	
  Frank Amodio

  
	
   

  	
  Title:

  	
  Vice President - Credit

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  170 Wood Avenue
  South

  
	
   

  	
   

  	
  Iselin, NJ 08830

  
	
   

  	
   

  	
  Attn: Robert
  Nadler

  
	
   

  	
   

  	
  Telephone: 732-590-6636

  
	
   

  	
   

  	
  Facsimile: 732-590-6648

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  170 Wood Avenue
  South

  
	
   

  	
   

  	
  Iselin, NJ 08830

  
	
   

  	
   

  	
  Attn: Robert
  Nadler

  
	
   

  	
   

  	
  Telephone: 732-590-6636

  
	
   

  	
   

  	
  Facsimile: 732-590-6648

  
					

 

131

 

	
   

  	
  HIBERNIA NATIONAL BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daria Mahoney

  	
   

  
	
   

  	
  Name:

  	
  Daria Mahoney

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  313 Carondelet

  
	
   

  	
   

  	
  10th
  Floor

  
	
   

  	
   

  	
  New Orleans, LA
  70130

  
	
   

  	
   

  	
  Attn: Gina
  Santos

  
	
   

  	
   

  	
  Telephone: 504-533-5569

  
	
   

  	
   

  	
  Facsimile: 504-533-5434

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  313 Carondelet

  
	
   

  	
   

  	
  10th
  Floor

  
	
   

  	
   

  	
  New Orleans, LA
  70130

  
	
   

  	
   

  	
  Attn: Gina
  Santos

  
	
   

  	
   

  	
  Telephone: 504-533-5569

  
	
   

  	
   

  	
  Facsimile: 504-533-5434

  
					

 

132

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Monte E. Deckerd

  	
   

  
	
   

  	
  Name:

  	
  Monte E. Deckerd

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  555 S.W. Oak,
  PDQRP7LS

  
	
   

  	
   

  	
  Portland, OR
  97208

  
	
   

  	
   

  	
  Attn: Hanny
  Nawawi

  
	
   

  	
   

  	
  Telephone: 503-275-7894

  
	
   

  	
   

  	
  Facsimile: 503-275-8181

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  555 S.W. Oak,
  PDQRP7LS

  
	
   

  	
   

  	
  Portland, OR
  97208

  
	
   

  	
   

  	
  Attn: Hanny
  Nawawi

  
	
   

  	
   

  	
  Telephone: 503-275-7894

  
	
   

  	
   

  	
  Facsimile: 503-275-8181

  
					

 

133

 

	
   

  	
  RZB FINANCE LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John A. Valiska

  	
   

  	
  By:

  	
  /s/ Christoph Hoedl

  	
   

  
	
  Name:

  	
  John A. Valiska

  	
  Name:

  	
  Christoph Hoedl

  
	
  Title:

  	
  First Vice President

  	
  Title:

  	
  Group Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Base Rate Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  24 Grassy Plain
  Street

  
	
   

  	
   

  	
  Bethel, CT 06801

  
	
   

  	
   

  	
  Telephone: 203-207-7738

  
	
   

  	
   

  	
  Facsimile: 203-744-6474

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office (Eurodollar Loans)*

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  24 Grassy Plain
  Street

  
	
   

  	
   

  	
  Bethel, CT 06801

  
	
   

  	
   

  	
  Telephone: 203-207-7738

  
	
   

  	
   

  	
  Facsimile: 203-744-6474

  
							

 

134

 

EXHIBIT A

 

[FORM OF] ASSIGNMENT AND
ACCEPTANCE

 

THIS
ASSIGNMENT AND ACCEPTANCE dated as of                         
        , 200    
is entered into between                                 
(“Assignor”) and                                         
(“Assignee”).

 

Reference
is made to the Amended and Restated Senior Secured Working Capital Credit
Facility, dated as of May 27, 2005 (together with all modifications,
renewals, extensions, supplements and replacements from time to time, the “Credit
Agreement”), among TRANSMONTAIGNE INC., a Delaware corporation, certain other borrowing entities party
thereto, the financial institutions party thereto, JPMorgan Chase Bank, N.A.
and UBS AG, Stamford Branch, as Syndication Agents, Société Générale, New York
Branch and Wells Fargo Foothill, LLC, as the Documentation Agents, and WACHOVIA
BANK, NATIONAL ASSOCIATION, as Agent. 
Terms defined in the Credit Agreement are used herein with the same
meanings.

 

1.                                       The
Assignor hereby sells and assigns, without recourse, to the Assignee, and the
Assignee hereby purchases and assumes, without recourse, from the Assignor,
effective as of the Effective Date set forth below, the interests set forth
below (the “Assigned Interest”) in the Assignor’s rights and obligations
under the Credit Agreement, including, without limitation, the interests set
forth below in the Commitments of the Assignor on the effective date of the
assignment designated below (the “Effective Date”) and the Loans and
other extensions of credit owing to the Assignor which are outstanding on the
Effective Date, together with unpaid interest accrued on the assigned Loans and
other extensions of credit to the Effective Date and the amount, if any, set
forth below of the Fees accrued to the Effective Date for the account of the
Assignor.  Each of the Assignor and the
Assignee hereby makes and agrees to be bound by all the representations,
warranties and agreements set forth in Section 14.5(d) of the
Credit Agreement, a copy of which has been received by each such party.  From and after the Effective Date (i) the
Assignee, if it is not already a Lender under the Credit Agreement, shall be a
party to and be bound by the provisions of the Credit Agreement and, to the
extent of the interests assigned by this Assignment and Acceptance, have the
rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the extent of the interests assigned by this Assignment and Acceptance,
relinquish its rights (other than any rights it may have pursuant to Section 14.7
of the Credit Agreement which will survive) and be released from its
obligations under the Credit Agreement (and, in the case of an assignment of
all or the remaining portion of the Assignor’s rights and obligations under the
Credit Agreement, the Assignor shall cease to be a party to the Credit Agreement).

 

2.                                       The
Assignor represents and warrants to the Assignee that (i) it is the legal
and beneficial owner of the interest being assigned hereby free and clear of
any adverse claim, (ii) it is legally authorized to enter into this
Assignment and Acceptance and (iii) it is an Eligible Assignee.

 

3.                                       This
Assignment and Acceptance shall be governed by and construed in accordance with
the laws of the State of New York, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW
PROVISIONS THEREOF other than Section 5-1401
of the New York General Obligations Law.

 

135

 

	
   

  	
  4.

  	
  Terms of
  Assignment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Date of
  Assignment:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Legal Name of
  Assignor:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Legal Name of
  Assignee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Effective Date
  of Assignment:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Revolving Credit
  Commitment Assigned

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  Proportionate
  Share of Total Revolving Credit Commitments Assigned

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  Revolving Credit
  Commitment of Assignor after Assignment

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (h)

  	
  Proportionate
  Share of Total Revolving Commitments of Assignor after Assignment

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [(i)

  	
  Swing
  Loan Commitment Assigned

  	
   

  	
  $

  	
  ]

  
							

 

The terms set forth above

are hereby agreed to:

 

	
   

  	
  , as Assignor

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  	
  , as Assignee

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
								

 

136

 

	
  CONSENTED TO:

  
	
   

  
	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION,

  as Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  TRANSMONTAIGNE
  INC. .(1)

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
							

 

 

(1)                                  Not
required if an Event of Default is in existence.

 

137

 

EXHIBIT B

 

[FORM OF] AMENDED AND
RESTATED GUARANTY AGREEMENT

 

THIS
AMENDED AND RESTATED GUARANTY AGREEMENT (this “Guaranty
Agreement”) is entered into as of May 27, 2005 among TRANSMONTAIGNE PRODUCT SERVICES INC., a Delaware
corporation, COASTAL FUELS MARKETING, INC., a
Florida corporation, COASTAL TUG AND BARGE,
INC., a Florida corporation, TRANSMONTAIGNE TRANSPORT
INC., a Delaware corporation and TRANSMONTAIGNE
SERVICES INC., a Delaware corporation (each a “Guarantor”,
and collectively, the “Guarantors”, which terms shall include any
Domestic Restricted Subsidiary which becomes a Guarantor pursuant to Section 7.16
of the Credit Agreement referred to below), in favor of WACHOVIA
BANK, NATIONAL ASSOCIATION, in its capacity as the Agent (in such
capacity, the “Agent”) for the financial institutions from time to time
party to the Credit Agreement described below (the “Lenders”).  Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed thereto in the Credit
Agreement.

 

RECITALS

 

WHEREAS,
pursuant to that certain Amended and Restated Senior Secured Working Capital
Credit Facility dated as of May 27, 2005 (together with all modifications,
renewals, extensions, supplements and replacements from time to time, the “Credit
Agreement”) among TransMontaigne Inc., the Lenders, JPMorgan Chase Bank,
N.A. and UBS AG, Stamford Branch, as Syndication Agents, Société Générale, New
York Branch and Wells Fargo Foothill, LLC, as the Documentation Agents, and the
Agent, the Lenders have agreed to make Loans and to issue or participate in
Letters of Credit upon the terms and subject to the conditions set forth
therein; and

 

WHEREAS,
it is a condition precedent to the effectiveness of the Credit Agreement and
the obligations of the Lenders to make their respective Loans and to issue or
participate in Letters of Credit under the Credit Agreement that the Guarantors
shall have executed and delivered this Guaranty Agreement to the Agent for the
ratable benefit of the Lenders;

 

WHEREAS,
pursuant to the Original Credit Agreement, the Guarantors (other than
TransMontaigne Services Inc.) executed and delivered the Guaranty Agreement
referred to therein (the “Original Guaranty Agreement”), and this
Guaranty Agreement is an amendment and restatement of the Original Guaranty
Agreement and the parties intend that the Original Guaranty Agreement be
superceded and replaced by this Guaranty Agreement; and

 

WHEREAS,
the Borrower and the Guarantors are engaged in related businesses, and each
Guarantor will derive substantial direct and indirect benefit from the making
of the extensions of credit under the Credit Agreement;

 

NOW,
THEREFORE, in consideration of these premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

 

1.                                       The
Guaranty.  Each Guarantor hereby
guarantees to each Lender and to each affiliate of a Lender that enters into an
Lender Hedging Agreement with or provides Cash Management Products to a
Borrower the prompt payment of all Obligations of the Borrower, whenever
arising (hereinafter, collectively, the “Guaranteed Obligations”), in
full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, a mandatory cash collateralization or otherwise) strictly in
accordance with the terms thereof.  Each
Guarantor hereby further agrees that if any of the Guaranteed Obligations are
not paid in full when due (whether at stated maturity, as a mandatory prepayment,
by acceleration, as mandatory cash collateralization or otherwise), such
Guarantor will promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of
the Guaranteed Obligations, the same will be promptly paid in full when due
(whether at extended maturity, as a mandatory prepayment, by acceleration or
otherwise) in accordance with the terms of such extension or renewal.  This guaranty is a guaranty of payment and
not of collection.

 

Notwithstanding
any provision to the contrary contained herein or in any other of the Credit
Documents or any Lender Hedging Agreements or agreement pertaining to Cash
Management Products, to the extent the obligations of any Guarantor shall be
adjudicated to be invalid or unenforceable for any reason (including, without
limitation, because of any applicable state or federal law relating to
fraudulent conveyances or transfers) then the obligations of such Guarantor
hereunder shall be limited to the maximum amount that is permissible under
applicable law (whether federal or state and including, without limitation, any
bankruptcy, insolvency or similar law), after taking into account, among other
things, such Guarantor’s right of contribution and indemnification from each
other Credit Party under applicable law or the Contribution Agreement.

 

2.                                       Joint
and Several Liability.

 

(a) Each
of the Guarantors is accepting joint and several liability hereunder in
consideration of the financial accommodations to be provided by the Lenders
under the Credit Agreement, for the mutual benefit, directly and indirectly, of
the Borrower and Guarantors and in consideration of the undertakings of each of
the Guarantors to accept joint and several liability for the obligations of the
Borrower.

 

(b) Each
of the Guarantors jointly and severally hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-obligor, joint and several
liability with the other Guarantors with respect to the payment and performance
of all of the Guaranteed Obligations, it being the intention of the parties
hereto that all the Guaranteed Obligations shall be the joint and several
obligations of each of the Guarantors without preferences or distinction among
them.

 

(c) If
and to the extent that the Borrower or Guarantors shall fail to make any
payment with respect to any of the Obligations as and when due or to perform
any of the Obligations in accordance with the terms thereof, then in each such
event, the other Guarantors will make such payment with respect to, or perform,
such Obligation.

 

2

 

3.                                       Obligations
Unconditional.  The obligations of
each of the Guarantors under Section 1 hereof are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Credit Documents or any Lender Hedging Agreement
or agreement pertaining to Cash Management Products, or any other agreement or
instrument referred to therein, or any substitution, release or exchange of any
other guaranty of or security for any of the Guaranteed Obligations, and, to
the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever which might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor, it being the intent of this Section 3
that the obligations of each Guarantor hereunder shall be absolute and
unconditional under any and all circumstances. 
Each Guarantor agrees that it shall have no right of subrogation,
indemnity, reimbursement or contribution against any Borrower or any other
Guarantor of the Obligations for amounts paid under this Guaranty Agreement
until all of the Credit and Collateral Termination Events have occurred.  Without limiting the generality of the
foregoing, it is agreed that, to the fullest extent permitted by law, the
occurrence of any one or more of the following shall not alter or impair the
liability of any Guarantor hereunder which shall remain absolute and unconditional
as described above:

 

(i)                                     at
any time or from time to time, without notice to any Guarantor, the time for
any performance of or compliance with any of the Guaranteed Obligations shall
be extended, or such performance or compliance shall be waived;

 

(ii)                                  any
of the acts mentioned in any of the provisions of any of the Credit Agreement,
the Credit Documents, any Lender Hedging Agreement or agreement pertaining to
Cash Management Products or any other agreement or instrument referred to in
the Credit Agreement, the Credit Documents or any Lender Hedging Agreement or
agreement pertaining to Cash Management Products shall be done or omitted;

 

(iii)                               the
maturity of any of the Guaranteed Obligations shall be accelerated, or any of
the Guaranteed Obligations shall be modified, supplemented or amended in any
respect, or any right under any of the Credit Agreement, the Credit Documents,
any Lender Hedging Agreement  or
agreement pertaining to Cash Management Products or any other agreement or
instrument referred to in the Credit Agreement, the Credit Documents or any
Lender Hedging Agreement  or agreement
pertaining to Cash Management Products shall be waived or any other guarantee
of any of the Guaranteed Obligations or any security therefor shall be released
or exchanged in whole or in part or otherwise dealt with;

 

(iv)                              any
Lien granted to, or in favor of, the Agent or any Lender or Lenders as security
for any of the Guaranteed Obligations shall fail to attach or be perfected; or

 

(v)                                 any
of the Guaranteed Obligations shall be determined to be void or voidable
(including, without limitation, for the benefit of any creditor of any
Guarantor) or shall be subordinated to the claims of any Person (including,
without limitation, any creditor of any Guarantor).

 

3

 

With respect to its
obligations hereunder, each Guarantor hereby expressly waives diligence,
presentment, demand of payment, protest and all notices whatsoever, to the
extent permitted by law, and any requirement that the Agent or any Lender
exhaust any right, power or remedy or proceed against any Person under any of
the Credit Agreement, the Credit Documents, any Lender Hedging Agreement or
agreement pertaining to Cash Management Products or any other agreement or
instrument referred to in the Credit Agreement, the Credit Documents or any
Lender Hedging Agreement or agreement pertaining to Cash Management Products,
or against any other Person under any other guarantee of, or security for, any
of the Guaranteed Obligations.

 

4.                                       Reinstatement.  The obligations of each Guarantor under this
Guaranty Agreement shall be automatically reinstated if and to the extent that
for any reason any payment by or on behalf of any Person in respect of the
Guaranteed Obligations is rescinded or must be otherwise restored by any holder
of any of the Guaranteed Obligations, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, and each Guarantor agrees that it
will indemnify the Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, fees and expenses of counsel, subject
to Section 14.7 of the Credit Agreement) incurred by the Agent or
such Lender in connection with such rescission or restoration, including any
such costs and expenses incurred in defending against any claim alleging that
such payment constituted a preference, fraudulent transfer or similar payment
under any bankruptcy, insolvency or similar law.

 

5.                                       Certain
Additional Waivers.  Each Guarantor further agrees that
it shall have no right of recourse to security for the Guaranteed Obligations,
except through the exercise of the rights of subrogation pursuant to Section 3
hereof or pursuant to the Contribution Agreement.

 

6.                                       Remedies.  Each Guarantor agrees that, to the fullest
extent permitted by law, as between such Guarantor, on the one hand, and the
Agent and the Lenders, on the other hand, the Guaranteed Obligations may be
declared to be forthwith due and payable as provided in Section 11.2
of the Credit Agreement (and shall be deemed to have become automatically due
and payable in the circumstances provided in said Section 11.2) for
purposes of Section 1 hereof notwithstanding any stay, injunction
or other prohibition preventing such declaration (or preventing the Guaranteed
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Guaranteed
Obligations being deemed to have become automatically due and payable), the
Guaranteed Obligations (whether or not due and payable by any other Person)
shall forthwith become due and payable by the Guarantors for purposes of said Section 1.

 

7.                                       Limitation
on Guaranteed Obligations. 
Notwithstanding any provision to the contrary contained herein or in any
other of the Credit Documents or Lender Hedging Agreements or agreement
pertaining to Cash Management Products, the obligations of each Guarantor
hereunder shall be limited to an aggregate amount equal to the largest amount
that would not render its obligations hereunder subject to avoidance under
applicable law (whether federal or state and including, without limitation, Section 548
of the Bankruptcy Code), after taking into account, among other things, such
Guarantor’s right of contribution and indemnification from each other Credit
Party under applicable law or the Contribution Agreement

 

4

 

8.                                       Representations,
etc.

 

(a)                                  The guaranty in this
Guaranty Agreement is a continuing guaranty, and shall apply to all Guaranteed
Obligations whenever arising;

 

(b)                                 Each Guarantor hereby
represents and warrants that it is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation and in each
other jurisdiction in which the failure to be so qualified could be reasonably
be expected to have a Material Adverse Effect;

 

(c)                                  Each Guarantor
further represents and warrants that it has the power and authority to enter
into this Guaranty Agreement and to perform its obligations and to consummate
the transactions contemplated hereby and has by proper action duly authorized
the execution and delivery of this Guaranty Agreement; and

 

(d)                                 Each Guarantor further
represents and warrants that this Guaranty Agreement constitutes the legal,
valid and binding obligation of such Guarantor enforceable in accordance with
its terms.

 

(e)                                  Each
Guarantor incorporates herein by reference as fully as if set forth herein all
of the representations and warranties pertaining to it as a Guarantor or
Subsidiary contained in the Credit Agreement, including, without limitation, Article VI
of the Credit Agreement (which representations and warranties shall be deemed
to have been renewed by the Guarantors upon each extension of credit under the
Credit Agreement).

 

9.                                       Incorporated
Covenants and Waivers.  Each
Guarantor incorporates herein by reference as fully as if set forth herein all
of the covenants, waivers and other provisions pertaining to it as a Guarantor
or Subsidiary contained in the Credit Agreement, including, without limitation,
Articles VII, VIII, IX and X of the Credit Agreement .

 

10.                                 Amendments;
Waivers; Modifications.  This
Guaranty Agreement and the provisions hereof may not be amended, waived,
modified, changed, discharged or terminated except as set forth in Section 14.9
of the Credit Agreement.

 

11.                                 Counterparts.  This Guaranty Agreement may be executed in
any number of counterparts, each of which where so executed and delivered shall
be an original, but all of which shall constitute one and the same
instrument.  It shall not be necessary in
making proof of this Guaranty Agreement to produce or account for more than one
such counterpart.

 

12.                                 Headings.  The headings of the sections and subsections
hereof are provided for convenience only and shall not in any way affect the
meaning, construction or interpretation of any provision of this Guaranty
Agreement.

 

13.                                 Governing
Law; Submission to Jurisdiction and Service of Process; Arbitration; Waiver of
Jury Trial.  THIS GUARANTY AGREEMENT
AND THE RIGHTS AND OBLIGATIONS

 

5

 

OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PROVISIONS
THEREOF, OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW.  The
terms of Sections 14.2, 14.3 and 14.4 of the Credit Agreement
are incorporated herein by reference, mutatis mutandis,
and the parties hereto agree to such terms.

 

14.                                 Entirety.  This Guaranty Agreement, the Credit Agreement
and the other Credit Documents represent the entire agreement of the parties
hereto and thereto, and supersede all prior agreements and understandings, oral
or written, if any, including any commitment letters or correspondence relating
to the Credit Agreement, the other Credit Documents or the transactions
contemplated herein and therein.

 

15.                                 Taxes,
etc.  All payments required to
be made by the Guarantors hereunder shall be made without setoff or
counterclaim and free and clear of and without deduction or withholding for or
on account of, any present or future taxes, levies, imposts, duties or other
charges of whatsoever nature imposed by any government or any political or taxing
authority as required pursuant to Section 2.6 of the Credit
Agreement.

 

16.                                 Additional
Guarantors.  Section 7.16
of the Credit Agreement provides that certain Domestic Restricted Subsidiaries
must become Guarantors by, among other things, executing and delivering to the
Agent a counterpart of this Guaranty Agreement. 
Any Domestic Restricted Subsidiary which executes and delivers to the
Agent a counterpart of this Guaranty Agreement shall be a Guarantor for all
purposes hereunder.

 

Each
of the parties hereto has caused a counterpart of this Guaranty Agreement to be
duly executed and delivered as of the date first above written.

 

	
  GUARANTOR:

  	
  TRANSMONTAIGNE
  PRODUCT SERVICES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COASTAL
  FUELS MARKETING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

6

 

	
   

  	
  COASTAL
  TUG AND BARGE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  TRANSPORT INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  SERVICES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

7

 

Accepted and agreed to as
of the date first above written.

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION,

  as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

 

EXHIBIT C

 

[FORM] LANDLORD CONSENT TO LEASEHOLD MORTGAGE

 

This Landlord Consent
(the “Consent”) is granted this             
day of                       
200  , by                                                                                                                     
(“Landlord”) and                                                                                                                       
(“Tenant”) in favor of Wachovia Bank,
National Association, having an office at 191 Peachtree Street, N.E., GA 8056,
Atlanta, GA 30303, Attention:  Dan
Denton, acting as agent (in such capacity, the “Agent”),
for the benefit of the Lenders (as hereinafter defined) which are or may
hereafter become parties to the Credit Agreement (as hereinafter defined).

 

RECITALS

 

(a)                                  Landlord
entered into (i) that certain                                                   
(the “Lease”) for the premises more
particularly described in the                                                   
(the “Premises”).

 

(b)                                 Tenant,
certain affiliates of Tenant, the Agent and a group of lenders for which it is
acting as agent (the “Lenders”)
entered into that certain Amended and Restated Senior Secured Working Capital
Credit Facility, dated as of May 27, 2005 (as from time to time amended,
modified, restated and in effect, the “Credit  Agreement”), pursuant to which the Lenders have extended,
and in the future will extend, credit to Tenant and/or its affiliates (the “Credit Obligations”).

 

(c)                                  Tenant
and certain affiliates of Tenant have entered into that certain Security
Agreement dated as of September 13, 2004 (the “Security
Agreement”).

 

(d)                                 As
a condition to entering into the Credit Agreement, the Lenders require liens
pursuant to the terms of the Security Agreement in favor of the Agent on
certain of Tenant’s assets located on the Premises and consent by Landlord to
Tenant’s granting of a leasehold mortgage or deed of trust on Tenant’s interest
under the Leases.

 

AGREEMENT

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

 

Consent to Personal Property Lien.  Landlord consents to the grant by Tenant to
the Agent of a lien on and security interest in all assets and personal
property of Tenant located on the Premises, including, but not limited to, all
inventory, goods, machinery, equipment, oil, liquid hydrocarbons, crude oil,
refined petroleum, natural gas liquids, other oil products and other tangible
personal property and all accounts receivable, contracts, licenses,
intellectual property and other intangible property owned by Tenant (the “Personal Property”) as collateral

 

 

security
for the repayment of the Credit Obligations and all other indebtedness,
liabilities and obligations, whether now existing or hereafter arising, of
Tenant to the Lenders (the lien on and security interest in Tenant’s Personal
Property in favor of the Agent is hereinafter referred to as the “Security Interest”). 
Landlord subordinates any security interest, lien, claim or other
similar right, including, without limitation, rights of levy or distraint for
rent, in or on the Personal Property, whether arising by agreement or by law
and whether currently existing or arising in the future to the Security
Interest.  The Agent may, in connection
with any foreclosure or other similar action relating to the Personal Property,
enter upon the Premises (or permit its representatives to do so on its behalf)
in order to implement such foreclosure or other action without liability to Landlord;
provided, however, that (a) rent is paid to Landlord during
occupancy by or on behalf of the Agent for any purpose and (b) the Agent
pays for any damages caused by the Agent or its representatives in removing the
Personal Property from the Premises.

 

Consent to Leasehold Mortgage.  Landlord consents to the grant by Tenant to
the Agent of a lien on Tenant’s leasehold interest in the Leases pursuant to a
Deed of Trust, Security Agreement and Assignment of Leases and Rents (the “Mortgage” ) and the recordation of the Mortgage in each
county where the premises described in the Leases are located (the “Land Records”). 
Landlord also agrees to execute and permit Tenant to record in the Land
Records a Memorandum of Lease with respect to the Leases.  Any transfer of the Leases or the Agent’s
interest in all or any part of the Premises described under the Leases to the
Agent or a nominee thereof through exercise of the power of sale or similar
remedy under the Mortgage shall be deemed to be consented to by Landlord.  If the Lender, or a nominee thereof, becomes
Tenant under the Leases, Landlord shall reasonably consent to any further
assignment of the Leases by the Lender or such nominee.

 

Notice and Cure Under the Leases.  In the event Landlord gives to Tenant any
notice of (i) default, (ii) matter on which a default may be
predicated or claimed, (iii) a termination of the Leases or (iv) a
condition that if continued may lead to a termination of the Leases, Landlord
will simultaneously give a duplicate copy thereof to the Agent and no such
notice to Tenant shall be effective unless a copy of such notice is sent to the
Agent.  The Agent shall have the right
(but not the obligation) for the same period after the sending of notice to it
to remedy the default as is given to Tenant after notice to it.  Landlord agrees to accept performance on the
part of the Agent as though performed by Tenant within the period allowed to
Tenant by the terms of the Leases.  In
the event that the Agent is unable to cure any default other than a monetary
default pursuant to the preceding portion of this paragraph, Landlord agrees
that it will not terminate the Leases without first giving to the Agent a
reasonable time (to be agreed upon by Landlord and the Agent) within which to
cure any default other than a monetary default that is reasonably susceptible
of cure by the Agent with reasonable diligence, and if necessary to do so, to
obtain possession of the Premises, including possession by a receiver, or to
institute and complete foreclosure proceedings or otherwise acquire Tenant’s
interest under the Leases with diligence and without unreasonable delay, provided
that if the Agent has agreed to a time during which it will attempt to
cure such non-monetary default, the Agent shall also cure any monetary defaults
up through the time agreed on for the Agent to make such cure.

 

Lease Covenants.  Landlord agrees that the Leases shall not be
modified or surrendered to Landlord or cancelled by Tenant, nor shall Landlord
accept a surrender of the

 

2

 

Consolidated
Lease or the Intercoastal Lease without the prior written consent of the Agent,
nor shall any merger result from the acquisition by, or devolution upon, any
one entity of both the fee in the Premises and the leasehold estate.  If the Leases shall terminate prior to the
scheduled expiration dates, Landlord shall at the Agent’s sole election enter
into a new lease for the Premises covered by the Leases with the Agent for the
remainder of the then term thereof, effective as of the date of such
termination at the same rent and upon the same terms, covenants and conditions
contained therein on the condition that the Agent shall make a written request
for such new lease within thirty (30) days after the date of its actual receipt
of a notice of such termination or, if proceedings are commenced by or on
behalf of Tenant within such thirty (30) day period that stay or extend the
effective date of such termination, within ten (10) days of the date on
which such termination is finally determined to be effective by a court of
competent jurisdiction and on the commencement date of the term of the new
lease, the Agent shall cure all defaults of Tenant under the Leases that are
susceptible of being cured by the Agent and that remain uncured on such date
and shall pay or cause to be paid all unpaid sums which at such time would have
been payable under the Leases but for such termination (provided, that,
the Agent shall only cure those defaults of which it is given notice and an
opportunity to cure as provided in paragraph 3 above).

 

Estoppel.  Landlord hereby represents that the Leases
are in full force and effect as of the date hereof and there have been no
defaults by Landlord or, to the best knowledge of Landlord, by Tenant
thereunder.  The Leases have not been
modified and Landlord does not have any agreements other than the Leases with
Tenant pertaining to the Leases or the Premises.  Landlord is the current landlord under the
Leases and is authorized to execute this Consent.  All rents payable under the Leases have been
paid through the date hereof.

 

Notices.  Any notices required or desired to be given
hereunder shall be directed to the party to be notified at the address set
forth above or at such other address as the addressee shall have specified from
time to time by actual notice to the addressor. 
All such notices shall be sent by United States certified mail return
receipt requested or by reputable overnight courier.

 

Term of Agreement.  This Consent shall continue in effect until
the earlier of (a) the date all Credit Obligations are indefeasibly paid
in full or (b) as to the Leases, the date Tenant is no longer in occupancy
or otherwise a tenant of the Premises (subject to the provisions of Paragraph 4
that give the Agent the right to request a new lease and occupy the Premises).

 

General.  This Consent may not be modified, amended or
terminated except in writing signed by the parties hereto.  Landlord will notify all successor owners,
transferees, purchasers and mortgagees of the existence of this Consent.  This Consent shall inure to the benefit of
and be binding upon the successors, assigns and personal representatives of the
parties, including any successors and assigns of the Agent.  Landlord will execute and deliver, without
additional consideration, any further instruments of transfer which are
reasonably requested by the Agent to carry out the intent and purposes of this
Consent.

 

This Consent may be executed in several counterparts and by each party
on a separate counterpart, each of which when so executed and delivered shall
be an original, and all of which together shall constitute one instrument.

 

3

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

4

 

IN WITNESS WHEREOF, this Consent has been by a duly authorized officer
or other representative of the parties hereto under seal as of the date first
above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT:

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,
  NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

5

 

	
  STATE OF

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

This instrument was
acknowledged before me on the             
day of                         ,
2004 by                                                 ,
the                                                         
of                                                                                     ,
a                               ,
on behalf of such                                       .

 

 

	
   

  	
   

  
	
  SEAL

  	
  Notary Public

  
	
   

  	
  My commission
  expires:

  

 

 

	
  STATE OF

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

This instrument was
acknowledged before me on the             
day of                   ,
2004 by                                         ,
                                          
of                                                     ,
a                                         ,
on behalf of such corporation.

 

 

	
   

  	
   

  
	
  SEAL

  	
  Notary Public

  
	
   

  	
  My commission
  expires:

  

 

 

	
  STATE OF

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF

  	
  )

  

 

This
instrument was acknowledged before me on the             
day of                   ,
2004 by                                                         ,
                                                          
of Wachovia Bank, National Association, on
behalf of such                                           .

 

 

	
   

  	
   

  
	
  SEAL

  	
  Notary Public

  
	
   

  	
  My commission
  expires:

  

 

6

 

EXHIBIT A

 

Description of Leases

 

 

EXHIBIT D

 

[FORM OF] AMENDED AND RESTATED
PLEDGE AGREEMENT

 

THIS
AMENDED AND RESTATED PLEDGE AGREEMENT (this “Pledge
Agreement”) is entered into as of May 27, 2005 by and among TRANSMONTAIGNE INC., a Delaware corporation ( the “Borrower”),
COASTAL FUELS MARKETING, INC., a
Florida corporation, TRANSMONTAIGNE PRODUCT
SERVICES INC., a Delaware corporation and TRANSMONTAIGNE
SERVICES INC., a Delaware Corporation (each a “Guarantor” and
collectively, the “Guarantors”; the Guarantors, together with the
Borrower, individually a “Pledgor” and collectively the “Pledgors”,
which terms shall include any Domestic Restricted Subsidiary that becomes a
Pledgor pursuant to Section 7.16 of the Credit Agreement referred
to below) and WACHOVIA BANK, NATIONAL ASSOCIATION,
in its capacity as Agent under the Credit Agreement referred to below (in such
capacity, the “Agent”) for the several banks and other financial
institutions as may from time to time become parties to such Credit Agreement
(individually a “Lender” and collectively the “Lenders”).

 

RECITALS

 

WHEREAS,
pursuant to that certain Amended and Restated Senior Secured Working Capital
Credit Facility dated as of the date hereof (together with all modifications,
renewals, extensions, supplements and replacements from time to time, the “Credit
Agreement”), among the Borrower, the Lenders party thereto from time to
time, JPMorgan Chase Bank, N.A. and UBS AG, Stamford Branch, as Syndication
Agents, Société Générale, New York Branch and Wells Fargo Foothill, LLC, as the
Documentation Agents, and the Agent, the Lenders have agreed to make Loans and
issue Letters of Credit upon the terms and subject to the conditions set forth
therein; and

 

WHEREAS,
it is a condition precedent to the effectiveness of the Credit Agreement and
the obligations of the Lenders to make their respective Loans and to issue
Letters of Credit under the Credit Agreement that the Pledgors shall have
executed and delivered this Pledge Agreement to the Agent for the ratable benefit
of the Lenders; and

 

WHEREAS,
pursuant to the Original Credit Agreement, the Pledgors (other than
TransMontaigne Services Inc.) executed and delivered the Pledge Agreement
referred to therein (the “Original Pledge Agreement”), and this Pledge
Agreement is an amendment and restatement of the Original Pledge Agreement and
the parties intend that the Original Pledge Agreement be superceded and
replaced by this Pledge Agreement, but that the security interests granted
pursuant to the Original Pledge Agreement continue in force pursuant hereto
without interruption and that this Pledge Agreement not be a novation of the
Original Pledge Agreement.

 

NOW,
THEREFORE, in consideration of these premises and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

 

 

1.                                       Definitions.
Unless otherwise defined herein, capitalized terms used herein shall have the
meanings ascribed to such terms in the Credit Agreement.  For purposes of this Pledge Agreement, the
term “Lender” shall include any Lender, or any Affiliate of any Lender,
which has entered into a Lender Hedging Agreement or agreement pertaining to
Cash Management Products with any Pledgor (to the extent the obligations of
such Pledgor thereunder constitute Pledgor Obligations (as defined in Section 3
hereof)).  The term “UCC” means
the Uniform Commercial Code as in effect in the State of New York.  The terms “Adverse Claim”, “Control”, “Entitlement
Order”, “Financial Asset”, “Securities Account”, “Securities Entitlement”, “Securities
Intermediary” and “Security” have the meanings given them in Article 8 of
the UCC.

 

2.                                       Pledge
and Grant of Security Interest.  To
secure the prompt payment and performance in full when due, whether by lapse of
time or otherwise, of the Pledgor Obligations (as defined in Section 3
hereof), each Pledgor hereby pledges and assigns to the Agent, for the benefit
of the Agent and the Lenders, and grants to the Agent, for the benefit of the
Agent and the Lenders, a continuing security interest in any and all right,
title and interest of such Pledgor in and to the following, whether now owned
or existing or owned, acquired, or arising hereafter (collectively, the “Pledged
Collateral”):

 

(a)                                  Pledged
Capital Stock. (i) 100% (or, if less than 100% is owned by such
Pledgor, the full amount owned by such Pledgor) of the issued and outstanding
Capital Stock of each Domestic Restricted Subsidiary set forth on Schedule 2(a) attached
hereto, which Schedule 2(a) does not include 120,000 common
units in Partners held by TransMontaigne Services Inc. for its long-term
incentive plan, which will not constitute Pledged Collateral, and (ii) 65%
(or, if less than 65% is owned by such Pledgor, the full amount owned by such
Pledgor) of each class of the issued and outstanding Capital Stock entitled to
vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Voting
Equity”) and 100% (or, if less than 100% is owned by such Pledgor, the full
amount owned by such Pledgor) of each class of the issued and outstanding
Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2))
(“Non-Voting Equity”) of each directly owned Foreign Subsidiary set
forth on Schedule 2(a) attached hereto (collectively, together
with the Capital Stock described in Section 2(b) below, the “Pledged
Capital Stock”), including, but not limited to, the following:

 

(y)                                 subject
to the percentage restrictions described above and in Section 2(b) below,
all shares, securities, membership interests or other equity interests
representing a dividend on any of the Pledged Capital Stock, or representing a
distribution or return of capital upon or in respect of the Pledged Capital
Stock, or resulting from a stock split, revision, reclassification or other
exchange therefor, and any subscriptions, warrants, rights or options issued to
the holder of, or otherwise in respect of, the Pledged Capital Stock; and

 

(z)                                   subject
to the percentage restrictions described above and in Section 2(b) below,
and without affecting the obligations of the Pledgors under any provision
prohibiting such action hereunder or under the Credit Agreement, in the event
of any consolidation or merger involving the issuer of any Pledged

 

2

 

Capital
Stock and in which such issuer is not the surviving entity, all shares of each
class of the Capital Stock of the successor entity formed by or resulting from
such consolidation or merger.

 

(b)                                 Additional
Interests. (i) 100% (or, if less than 100% is owned by such Pledgor,
the full amount owned by such Pledgor) of each class of the issued and
outstanding Capital Stock of any other Domestic Restricted Subsidiary,
including any Person which hereafter becomes a Domestic Restricted Subsidiary
and (ii) 65% (or, if less than 65% is owned by such Pledgor, the full
amount owned by such Pledgor) of the Voting Equity and 100% (or, if less than
100% is owned by such Pledgor, the full amount owned by such Pledgor) of the
Non-Voting Equity of any other directly owned Foreign Subsidiary, including any
Person which hereafter becomes a directly owned Foreign Subsidiary, including,
without limitation, the certificates representing such Capital Stock.

 

(c)                                  Proceeds.  All proceeds and products of the foregoing,
however and whenever acquired and in whatever form.

 

Without
limiting the generality of the foregoing, it is hereby specifically understood
and agreed that a Pledgor may from time to time hereafter pledge and deliver
additional shares of stock or other interests to the Agent as collateral
security for the Pledgor Obligations. 
Upon such pledge and delivery to the Agent, such additional shares of
stock or other interests shall be deemed to be part of the Pledged Collateral
of such Pledgor and shall be subject to the terms of this Pledge Agreement
whether or not Schedule 2(a) is amended to refer to such
additional shares.

 

3.                                       Security
for Pledgor Obligations.  The
security interest created hereby in the Pledged Collateral of each Pledgor
constitutes continuing collateral security for all of the following, whether
now existing or hereafter incurred (the “Pledgor Obligations”):  (a) all of the Obligations, howsoever
evidenced, created, incurred or acquired, whether primary, secondary, direct,
contingent, or joint and several and (b) all expenses and charges, legal
and otherwise, reasonably incurred by the Agent and/or the Lenders in
collecting or enforcing any Obligations or Pledgor Obligations or in realizing
on or protecting any security therefor, including without limitation the
security granted hereunder.

 

4.                                       Delivery
of the Pledged Collateral; Perfection of Security Interest.  Each Pledgor hereby agrees that:

 

(a)                                  Delivery
of Certificate.  Each Pledgor shall
deliver to the Agent (i) simultaneously with or prior to the execution and
delivery of this Pledge Agreement, all certificates, if any, representing the
Pledged Capital Stock of such Pledgor and (ii) promptly upon the receipt
thereof by or on behalf of a Pledgor, any other certificates and instruments
constituting Pledged Collateral of a Pledgor. 
Prior to delivery to the Agent, all such certificates and instruments,
if any, constituting Pledged Collateral of a Pledgor shall be held in trust by
such Pledgor for the benefit of the Agent pursuant hereto.  All such certificates shall be delivered in
suitable form for transfer by delivery or shall be

 

3

 

accompanied
by duly executed instruments of transfer or assignment in blank, substantially
in the form provided in

Exhibit 4(a) attached hereto, or such other form as may be
reasonably acceptable to the Agent.

 

(b)                                 Additional
Securities.  If such Pledgor shall
receive by virtue of its being or having been the owner of any Pledged
Collateral, any (i) certificate, including without limitation, any
certificate representing a dividend or distribution in connection with any
increase or reduction of capital, reclassification, merger, consolidation, sale
of assets, combination of shares or membership or equity interests, stock
splits, spin-off or split-off, promissory notes or other instrument; (ii) option
or right, whether as an addition to, substitution for, or an exchange for, any
Pledged Collateral or otherwise; (iii) dividends payable in securities; or
(iv) distributions of securities or other equity interests in connection
with a partial or total liquidation, dissolution or reduction of capital,
capital surplus or paid-in surplus, then such Pledgor shall receive such
certificate, instrument, option, right or distribution in trust for the benefit
of the Agent, shall segregate it from such Pledgor’s other property and shall
deliver it forthwith to the Agent in the exact form received together with any
necessary endorsement and/or appropriate stock power duly executed in blank,
substantially in the form provided in Exhibit 4(a), or such other
form as may be reasonably acceptable to the Agent, to be held by the Agent as
Pledged Collateral and as further collateral security for the Pledgor
Obligations.

 

(c)                                  Financing
Statements.  Each Pledgor authorizes
the Agent to prepare and file such UCC or other applicable financing statements
as may be reasonably deemed necessary or desirable by the Agent in order to
perfect and protect the security interest created hereby in the Pledged
Collateral of such Pledgor.

 

(d)                                 Provisions
Relating to Securities Entitlements and Securities Accounts.  With respect to any Pledged Collateral
consisting of a Securities Entitlement or held in a Securities Account, (a) the
applicable Pledgor and the applicable Securities Intermediary shall enter into
an agreement with the Agent granting Control to the Agent over such Pledged
Collateral, such agreement to be in form and substance reasonably satisfactory
to the Agent and (b) the Agent shall be entitled, upon the occurrence and
during the continuance of a Default or an Event of Default, to notify the
applicable Securities Intermediary that it should follow the Entitlement Orders
of the Agent and no longer follow the Entitlement Orders of the applicable Pledgor.  Upon receipt by a Pledgor of notice from a
Securities Intermediary of its intent to terminate the Securities Account of
such Pledgor held by such Securities Intermediary, unless all of  the Pledged Collateral held therein is
reduced to cash and paid to the applicable Pledgors, prior to the termination
of such Securities Account the Pledged Collateral in such Securities Account
shall be (i) transferred to a new Securities Account which is subject to a
control agreement as provided above or (ii) transferred to an account held
by the Agent (in which it will be held until a new Securities Account is
established).

 

4

 

5.                                       Representations
and Warranties.  Each Pledgor hereby
represents and warrants to the Agent, for the benefit of the Agent and the
Lenders, that until all of the Credit and Collateral Termination Events have
occurred:

 

(a)                                  Authorization
of Pledged Capital Stock.  The
Pledged Capital Stock is duly authorized and validly issued, and with respect
to the Capital Stock of a corporation, fully paid and nonassessable, and is not
subject to the preemptive rights of any Person. 
All other shares of Capital Stock constituting Pledged Collateral will
be duly authorized and validly issued, fully paid and nonassessable and not
subject to the preemptive rights of any Person.

 

(b)                                 Title.  Each Pledgor has good and indefeasible title
to the Pledged Collateral of such Pledgor and will at all times be the legal
and beneficial owner of such Pledged Collateral free and clear of any Lien,
other than Permitted Liens.  There exists
no Adverse Claim with respect to the Pledged Capital Stock of such Pledgor.

 

(c)                                  Exercising
of Rights.  The exercise by the Agent
of its rights and remedies hereunder will not violate any law or governmental
regulation or any material contractual restriction binding on or affecting a
Pledgor or any of its property, provided that the Agent obtains all necessary
Governmental Approvals pursuant to Section 10(e) hereof.

 

(d)                                 Pledgor’s
Authority.  No authorization,
approval or action by, and no notice or filing with any Governmental Authority,
the issuer of any Pledged Capital Stock or third party is required either (i) for
the pledge made by a Pledgor or for the granting of the security interest by a
Pledgor pursuant to this Pledge Agreement or (ii) for the exercise by the
Agent or the Lenders of their rights and remedies hereunder (in each case,
except as may be required by laws affecting the offering and sale of securities
or as has previously been obtained or made, as applicable).

 

(e)                                  Security
Interest/Priority. This Pledge Agreement creates a valid security interest
in favor of the Agent for the benefit of the Agent and the Lenders, in the
Pledged Collateral.  The taking
possession by the Agent of the certificates (if any) representing the Pledged
Capital Stock and all other certificates and instruments constituting Pledged
Collateral will perfect and establish the first priority (subject to Permitted
Liens) of the Agent’s security interest in all certificated Pledged Capital
Stock and such certificates and instruments. 
Each Pledgor is a “registered organization”, as that term is defined in Article 9
of the UCC, and its name on its signature line hereto is its exact legal name
as registered in the state of its organization. Upon the filing of UCC
financing statements in the appropriate filing office in the location of each
Pledgor’s State of organization, the Agent shall have a perfected first
priority (subject to Permitted Liens) security interest in all uncertificated
Pledged Capital Stock consisting of partnership or limited liability company
interests that do not constitute a Security pursuant to Section 8-103(c) of
the UCC.  With respect to any Pledged
Collateral consisting of a Securities Entitlement or held in a Securities
Account, upon execution and delivery by the applicable Pledgor, the applicable
Securities Intermediary and the Agent of an agreement granting Control to the

 

5

 

Agent
over such Pledged Collateral, the Agent shall have a perfected first priority
(subject to Permitted Liens) security interest in such Pledged Collateral.  Except as set forth in this Section, no
action is necessary to perfect or otherwise protect such security interest.

 

(f)                                    No
Other Capital Stock. Except as set forth on Schedule 2(a) attached
hereto, as revised or updated from time to time after the date hereof by the
Pledgors, no Pledgor owns any Capital Stock of any Borrower or any of its
Subsidiaries. Schedule 2(a), hereto, as revised or updated from
time to time after the date hereof by the Pledgors, as it pertains to each
Pledgor, includes all Foreign Subsidiaries directly owned by such Pledgor, and
does not include any Person not directly owned by such Pledgor.  The Pledgors shall send to the Agent such
revised or updated Schedule 2(a)’s from time to time as is
necessary to reflect the current ownership of the Capital Stock of the Pledgors
in Domestic Restricted Subsidiaries and in directly owned Foreign Subsidiaries.

 

(g)                                 Partnership
and Limited Liability Company Interests. Except as previously disclosed in
writing to the Agent, none of the Pledged Capital Stock consisting of
partnership or limited liability company interests (i) is dealt in or
traded on a securities exchange or in a securities market, (ii) by its
terms expressly provides that it is a security governed by Article 8 of
the UCC, (iii) is an investment company security, (iv) is held in a
securities account or (v) constitutes a Security or a Financial Asset”.

 

6.                                       Covenants.  Each Pledgor hereby covenants that until all
of the Credit and Collateral Termination Events have occurred, such Pledgor
shall:

 

(a)                                  Defense
of Title.  Use commercially
reasonable efforts to warrant and defend title to and ownership of the Pledged
Collateral of such Pledgor at its own expense against the claims and demands of
all other parties claiming an interest therein, keep the Pledged Collateral
free from all Liens, except for Permitted Liens, and not sell, exchange, transfer,
assign, lease or otherwise dispose of Pledged Collateral of such Pledgor or any
interest therein, except as permitted under the Credit Agreement and the other
Credit Documents.

 

(b)                                 Further
Assurances.  Promptly execute and
deliver at its expense all further instruments and documents and take all
further action that may be necessary and desirable or that the Agent may
reasonably request in order to (i) perfect and protect the security
interest created hereby in the Pledged Collateral of such Pledgor (including,
without limitation, the authentication and filing of UCC financing statements
and any and all action reasonably necessary to satisfy the Agent that the Agent
has obtained a first priority perfected security interest in all Pledged
Capital Stock); (ii) enable the Agent to exercise and enforce its rights
and remedies hereunder in respect of the Pledged Collateral of such Pledgor;
and (iii) otherwise effect the purposes of this Pledge Agreement,
including, without limitation and if requested by the Agent, delivering to the
Agent irrevocable proxies in respect of the Pledged Collateral of such Pledgor.

 

6

 

(c)                                  Amendments.  Not make or consent to any amendment or other
modification or waiver with respect to any of the Pledged Collateral of such
Pledgor or enter into any agreement or allow to exist any restriction with
respect to any of the Pledged Collateral of such Pledgor other than pursuant
hereto or as may be permitted under the Credit Agreement.

 

(d)                                 Compliance
with Securities Laws.  File all
reports and other information now or hereafter required to be filed by such
Pledgor with the United States Securities and Exchange Commission and any other
state, federal or foreign agency in connection with the ownership of the
Pledged Collateral of such Pledgor.

 

(e)                                  Issuance
or Acquisition of Capital Stock. Not without executing and delivering, or
causing to be executed and delivered, to the Agent such agreements, documents
and instruments as the Agent may reasonably require, issue or acquire any
Capital Stock consisting of an interest in a partnership or a limited liability
company that (i) is dealt in or traded on a securities exchange or in a
securities market, (ii) by its terms expressly provides that it is a security
governed by Article 8 of the UCC, (iii) is an investment company
security, (iv) is held in a Securities Account or (v) constitutes a
Security or a Financial Asset.

 

7.                                       Performance
of Obligations; Advances by Agent. 
Upon the occurrence and during the continuance of an Event of Default,
on failure of any Pledgor to perform any of the covenants and agreements
contained herein, the Agent may, at its sole option and in its sole discretion,
perform or cause to be performed the same and in so doing may expend such sums
as the Agent may reasonably deem advisable in the performance thereof,
including, without limitation, the payment of any insurance premiums, the
payment of any taxes, a payment to obtain a release of a Lien or potential
Lien, expenditures made in defending against any adverse claim and all other
expenditures which the Agent may make for the protection of the security hereof
or which may be compelled to make by operation of law.  All such sums and amounts so expended shall
be repayable by the Pledgors on a joint and several basis promptly upon timely
notice thereof and demand therefor, shall constitute additional Pledgor
Obligations and shall bear interest from the date said amounts are expended at
the Default Rate.  No such performance of
any covenant or agreement by the Agent on behalf of any Pledgor, and no such
advance or expenditure therefor, shall relieve the Pledgors of any default
under the terms of this Pledge Agreement, the other Credit Documents or any
Hedging Agreement or agreement relating to Cash Management Products between any
Credit Party and any Lender or affiliate of any Lender.  The Agent may make any payment hereby
authorized in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim
except to the extent such payment is being contested in good faith by a Pledgor
in appropriate proceedings and against which adequate reserves are being
maintained in accordance with GAAP.

 

8.                                       Events
of Default.  The occurrence of an
event which under the Credit Agreement would constitute an Event of Default
shall be an event of default hereunder (an “Event of Default”).

 

7

 

9.                                       Remedies.

 

(a)                                  General
Remedies.  Upon the occurrence of an
Event of Default and during the continuation thereof, the Agent and the Lenders
shall have, in respect of the Pledged Collateral of any Pledgor, in addition to
the rights and remedies provided herein, in the Credit Documents, in any
Hedging Agreement between any Credit Party and any Lender or by law, the rights
and remedies of a secured party under the UCC or any other applicable law.

 

(b)                                 Sale
of Pledged Collateral.  Upon the
occurrence of an Event of Default and during the continuation thereof, without
limiting the generality of this Section and without notice, the Agent may,
in its reasonable discretion, sell or otherwise dispose of or realize upon the
Pledged Collateral, or any part thereof, in one or more parcels, at public or
private sale, at any exchange or broker’s board or elsewhere, at such price or
prices and on such other terms as the Agent may deem commercially reasonable,
for cash, credit or for future delivery or otherwise in accordance with
applicable law.  To the extent permitted
by law, any Lender may in such event, bid for the purchase of such
securities.  Each Pledgor agrees that, to
the extent notice of sale shall be required by law and has not been waived by
such Pledgor, any requirement of reasonable notice shall be met if notice,
specifying the place of any public sale or the time after which any private
sale is to be made, is personally served on or mailed, postage prepaid, to such
Pledgor, in accordance with the notice provisions of Section 14.4
of the Credit Agreement at least 10 days before the time of such sale.  The Agent shall not be obligated to make any
sale of Pledged Collateral of such Pledgor regardless of notice of sale having
been given.  The Agent may adjourn any
public or private sale from time to time by announcement at the time and place
fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned.

 

(c)                                  Private
Sale.  Upon the occurrence of an
Event of Default and during the continuation thereof, the Pledgors recognize
that the Agent may deem it impracticable to effect a public sale of all or any
part of the Pledged Collateral and that the Agent may, therefore, determine to
make one or more private sales of any such Pledged Collateral to a restricted
group of purchasers that have agreed, among other things, to acquire such
Pledged Collateral for their own account, for investment and not with a view to
the distribution or resale thereof.  Each
Pledgor acknowledges that any such private sale may be at prices and on terms
less favorable to the seller than the prices and other terms which might have
been obtained at a public sale and, notwithstanding the foregoing, agrees that
such private sale shall be deemed to have been made in a commercially
reasonable manner and that the Agent shall have no obligation to delay sale of
any such Pledged Collateral for the period of time necessary to permit the
issuer of such Pledged Collateral to register such Pledged Collateral for
public sale under the Securities Act of 1933. 
Each Pledgor further acknowledges and agrees that any offer to sell such
Pledged Collateral which has been (i) publicly advertised on a bona fide
basis in a newspaper or other publication of general circulation in the
financial community of New York, New York (to

 

8

 

the
extent that such offer may be advertised without prior registration under the
Securities Act of 1933), or (ii) made privately in the manner described
above shall be deemed to involve a “public sale” under the UCC, notwithstanding
that such sale may not constitute a “public offering” under the Securities Act
of 1933, and the Agent may, in such event, bid for the purchase of such Pledged
Collateral.

 

(d)                                 Retention
of Pledged Collateral.  In addition
to the rights and remedies hereunder, upon the occurrence of an Event of
Default and during the continuation thereof, the Agent may, after providing the
notices required by Section 9-621 of the UCC (or any successor
sections of the UCC) or otherwise complying with the requirements of applicable
law of the relevant jurisdiction, accept or retain all or any portion of the
Pledged Collateral in full or partial satisfaction of the Pledgor
Obligations.  Unless and until the Agent
shall have provided such notices, however, the Agent shall not be deemed to
have retained any Pledged Collateral in satisfaction of any Pledgor Obligations
for any reason.

 

(e)                                  Deficiency.  In the event that the proceeds of any sale,
collection or realization are insufficient to pay all amounts to which the
Agent or the Lenders are legally entitled, the Pledgors shall be jointly and
severally liable for the deficiency, together with interest thereon at the
Default Rate, together with the costs of collection and the reasonable fees of
any attorneys employed by the Agent to collect such deficiency.  Any surplus remaining after the full payment
and satisfaction of the Pledgor Obligations shall be returned to the Pledgors
or to whomsoever a court of competent jurisdiction shall determine to be
entitled thereto.

 

(f)                                    Other
Security.  To the extent that any of
the Pledgor Obligations are now or hereafter secured by property other than the
Pledged Collateral (including, without limitation, real and other personal
property owned by a Pledgor), or by a guarantee, endorsement or property of any
other Person, then the Agent and the Lenders shall have the right to proceed
against such other property, guarantee or endorsement upon the occurrence of
any Event of Default, and the Agent and the Lenders have the right, in their
sole discretion, to determine which rights, security, liens, security interests
or remedies the Agent and the Lenders shall at any time pursue, relinquish,
subordinate, modify or take with respect thereto, without in any way modifying
or affecting any of them or any of the Agent’s and the Lenders’ rights or the
Pledgor Obligations under this Pledge Agreement, under any other of the Credit
Documents or under any Hedging Agreement or agreement pertaining to Cash
Management Products between any Credit Party and any Lender or an affiliate of
any Lender.

 

10.                                 Rights
of the Agent.

 

(a)                                  Power
of Attorney.  In addition to other
powers of attorney contained herein, each Pledgor hereby designates and
appoints the Agent, on behalf of the Lenders, and each of its designees or
agents as attorney-in-fact of such Pledgor, irrevocably and

 

9

 

with
power of substitution, with authority to take any or all of the following
actions upon the occurrence and during the continuation of an Event of Default:

 

(i)                                     to
demand, collect, settle, compromise, adjust and give discharges and releases
concerning the Pledged Collateral of such Pledgor, all as the Agent may
reasonably determine;

 

(ii)                                  to
commence and prosecute any actions at any court for the purposes of collecting
any of the Pledged Collateral of such Pledgor and enforcing any other right in
respect thereof;

 

(iii)                               to
defend, settle, adjust or compromise any action, suit or proceeding brought
and, in connection therewith, give such discharge or release as the Agent may
deem reasonably appropriate;

 

(iv)                              to
pay or discharge taxes, liens, security interests, or other encumbrances levied
or placed on or threatened against the Pledged Collateral of such Pledgor;

 

(v)                                 to
direct any parties liable for any payment under any of the Pledged Collateral
to make payment of any and all monies due and to become due thereunder directly
to the Agent or as the Agent shall direct;

 

(vi)                              to
receive payment of and receipt for any and all monies, claims, and other
amounts due and to become due at any time in respect of or arising out of any
Pledged Collateral of such Pledgor;

 

(vii)                           to sign
and endorse any drafts, assignments, proxies, stock powers, verifications,
notices and other documents relating to the Pledged Collateral of such Pledgor;

 

(viii)                        to execute
and deliver all assignments, conveyances, statements, financing statements,
renewal financing statements, pledge agreements, affidavits, notices and other
agreements, instruments and documents that the Agent may determine necessary in
order to perfect and maintain the security interests and liens granted in this
Pledge Agreement and in  order to fully
consummate all of the transactions contemplated herein;

 

(ix)                                to
exchange any of the Pledged Collateral of such Pledgor or other property upon
any merger, consolidation, reorganization, recapitalization or other
readjustment of the issuer thereof and, in connection therewith, deposit any of
the Pledged Collateral of such Pledgor with any committee, depository, transfer
agent, registrar or other designated agency upon such terms as the Agent may
determine;

 

10

 

(x)                                   to
vote for a shareholder, partner or member resolution, or to sign an instrument
in writing, sanctioning the transfer of any or all of the Pledged Capital Stock
of such Pledgor into the name of the Agent or one or more of the Lenders or
into the name of any transferee to whom the Pledged Capital Stock of such
Pledgor or any part thereof may be sold pursuant to Section 9
hereof; and

 

(xi)                                to
do and perform all such other acts and things as the Agent may reasonably deem
to be necessary, proper or convenient in connection with the Pledged Collateral
of such Pledgor.

 

This
power of attorney is a power coupled with an interest and shall be irrevocable
until all of the Credit and Collateral Termination Events have occurred.  The Agent shall be under no duty to exercise
or withhold the exercise of any of the rights, powers, privileges and options
expressly or implicitly granted to the Agent in this Pledge Agreement, and
shall not be liable for any failure to do so or any delay in doing so.  The Agent shall not be liable for any act or
omission or for any error of judgment or any mistake of fact or law in its
individual capacity or its capacity as attorney-in-fact except acts or omissions
resulting from its gross negligence or willful misconduct.  This power of attorney is conferred on the
Agent solely to protect, preserve and realize upon its security interest in the
Pledged Collateral.

 

(b)                                 Assignment
by the Agent.  The Agent may from
time to time assign the Pledgor Obligations or any portion thereof and/or the
Pledged Collateral or any portion thereof, and the assignee shall be entitled
to all of the rights and remedies of the Agent under this Pledge Agreement in
relation thereto.

 

(c)                                  The
Agent’s Duty of Care.  Other than the
exercise of reasonable care to ensure the safe custody of the Pledged
Collateral while being held by the Agent hereunder, the Agent shall have no
duty or liability to preserve rights pertaining thereto, it being understood
and agreed that  Pledgors shall be
responsible for preservation of all rights in the Pledged Collateral of such
Pledgor, and the Agent shall be relieved of all responsibility for Pledged
Collateral upon surrendering it or tendering the surrender of it to the
Pledgors.  The Agent shall be deemed to
have exercised reasonable care in the custody and preservation of the Pledged
Collateral in its possession if such Pledged Collateral is accorded treatment
substantially equal to that which the Agent accords its own property, which
shall be no less than the treatment employed by a reasonable and prudent agent
in the industry, it being understood that the Agent shall not have
responsibility for (i) ascertaining or taking action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relating to
any Pledged Collateral, whether or not the Agent has or is deemed to have
knowledge of such matters; or (ii) taking any necessary steps to preserve
rights against any parties with respect to any Pledged Collateral.

 

11

 

(d)                                 Voting
Rights in Respect of the Pledged Collateral.

 

(i)                                     So
long as no Event of Default shall have occurred and be continuing, to the
extent permitted by law, each Pledgor may exercise any and all voting and other
consensual rights pertaining to the Pledged Collateral of such Pledgor or any
part thereof for any purpose not inconsistent with the terms of this Pledge
Agreement or the Credit Agreement; and

 

(ii)                                  Subject
to Subsection (e) of this Section, upon the occurrence and
during the continuance of an Event of Default, all rights of a Pledgor to
exercise the voting and other consensual rights which it would otherwise be
entitled to exercise pursuant to paragraph (i) of this Subsection (d) shall
cease and all such rights shall thereupon become vested in the Agent which
shall then have the sole right to exercise such voting and other consensual
rights.

 

(e)                                  Dividend
and Distribution Rights in Respect of the Pledged Collateral.

 

(i)                                     So
long as no Event of Default shall have occurred and be continuing and subject
to Section 4(b) hereof, each Pledgor may receive and retain
any and all dividends (other than stock or ownership interest dividends and
other dividends constituting Pledged Collateral which are addressed
hereinabove), distributions or interest paid in respect of the Pledged
Collateral to the extent they are allowed under the Credit Agreement.

 

(ii)                                  Upon
the occurrence and during the continuation of an Event of Default:

 

(A)                              all
rights of a Pledgor to receive the dividends, distributions and interest
payments which it would otherwise be authorized to receive and retain pursuant
to paragraph (i) of this Subsection (e) shall cease and
all such rights shall thereupon be vested in the Agent which shall then have
the sole right to receive and hold as Pledged Collateral such dividends,
distributions and interest payments; and

 

(B)                                all
dividends, distributions and interest payments which are received by a Pledgor
contrary to the provisions of clause (A) of this paragraph (ii) shall
be received in trust for the benefit of the Agent, shall be segregated from
other property or funds of such Pledgor, and shall be forthwith paid over to
the Agent as Pledged Collateral in the exact form received, to be held by the
Agent as Pledged Collateral and as further collateral security for the Pledgor
Obligations.

 

(f)                                    Release
of Pledged Collateral.  The Agent may
release any of the Pledged Collateral from this Pledge Agreement or may
substitute any of the Pledged Collateral for other Pledged Collateral without
altering, varying or diminishing in any way the force, effect, lien, pledge or
security interest of this Pledge Agreement

 

12

 

as to
any Pledged Collateral not expressly released or substituted, and this Pledge
Agreement shall continue as a first priority lien on all Pledged Collateral not
expressly released or substituted.

 

11.                                 Application
of Proceeds.  Upon the occurrence and
during the continuation of an Event of Default, any payments in respect of the
Pledgor Obligations and any proceeds of any Pledged Collateral, when received
by the Agent or any of the Lenders in cash or its equivalent, will be applied
in reduction of the Pledgor Obligations in the order set forth in Section 2.8(b) of
the Credit Agreement, and each Pledgor irrevocably waives the right to direct
the application of such payments and proceeds and acknowledges and agrees that
the Agent shall have the continuing and exclusive right to apply and reapply
any and all such payments and proceeds in the Agent’s sole discretion,
notwithstanding any entry to the contrary upon any of its books and records.

 

12.                                 Costs
of Counsel.   If at any time
hereafter, whether upon the occurrence of an Event of Default or not, the Agent
employs counsel to prepare or consider amendments, waivers or consents with
respect to this Pledge Agreement, or to take action or make a response in or
with respect to any legal or arbitral proceeding relating to this Pledge
Agreement or relating to the Pledged Collateral, or to protect the Pledged
Collateral or exercise any rights or remedies under this Pledge Agreement or
with respect to the Pledged Collateral, then the Pledgors agree to promptly pay
in accordance with Section 7.9 of the Credit Agreement any and all
such reasonable documented costs and expenses of the Agent or the Lenders, all
of which costs and expenses shall constitute Pledgor Obligations hereunder.

 

13.                                 Continuing
Agreement.

 

(a)                                  This
Pledge Agreement shall be a continuing agreement in every respect and shall
remain in full force and effect until all of the Credit and Collateral
Termination Events have occurred.  Upon
the occurrence of all of the Credit and Collateral Termination Events, this
Pledge Agreement shall be automatically terminated and the Agent and the
Lenders shall, upon the request and at the expense of the Pledgors, forthwith
release all of its liens and security interests hereunder and shall execute and
deliver all UCC termination statements and/or other documents reasonably
requested by the Pledgors evidencing such termination.  Notwithstanding the foregoing all releases
and indemnities provided hereunder shall survive termination of this Pledge
Agreement.

 

(b)                                 This
Pledge Agreement shall continue to be effective or be automatically reinstated,
as the case may be, if at any time payment, in whole or in part, of any of the
Pledgor Obligations is rescinded or must otherwise be restored or returned by
the Agent or any Lender as a preference, fraudulent conveyance or otherwise
under any bankruptcy, insolvency or similar law, all as though such payment had
not been made; provided that in the event payment of all or any part of the
Pledgor Obligations is rescinded or must be restored or returned, all
reasonable costs and expenses (including without limitation any reasonable
legal fees and disbursements) incurred by the Agent or any Lender in

 

13

 

defending
and enforcing such reinstatement shall be deemed to be included as a part of
the Pledgor Obligations.

 

14.                                 Amendments;
Waivers; Modifications.  This Pledge
Agreement and the provisions hereof may not be amended, waived, modified,
changed, discharged or terminated except as set forth in Section 14.9
of the Credit Agreement.

 

15.                                 Successors
in Interest.  This Pledge Agreement
shall create a continuing security interest in the Pledged Collateral and shall
be binding upon each Pledgor, its successors and assigns and shall inure,
together with the rights and remedies of the Agent and the Lenders hereunder,
to the benefit of the Agent and the Lenders and their successors and permitted
assigns; provided, however, that none of the Pledgors may assign
its rights or delegate its duties hereunder without the prior written consent
of each Lender or the Required Lenders, as required by the Credit Agreement.

 

16.                                 Notices.  All notices required or permitted to be given
under this Pledge Agreement shall be in conformance with Section 14.4
of the Credit Agreement.

 

17.                                 Counterparts.  This Pledge Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument.  It shall not be necessary in making proof of
this Pledge Agreement to produce or account for more than one such counterpart.

 

18.                                 Headings.  The headings of the sections and subsections
hereof are provided for convenience only and shall not in any way affect the
meaning, construction or interpretation of any provision of this Pledge
Agreement.

 

19.                                 Governing
Law; Submission to Jurisdiction and Service of Process; Arbitration; Waiver of
Jury Trial.  THIS PLEDGE AGREEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE of NEW
YORK, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).  The terms of Sections 14.2,
14.3 and 14.4  of the Credit
Agreement are incorporated herein by reference, mutatis
mutandis, and the parties hereto agree to such terms.

 

20.                                 Severability.  If any provision of this Pledge Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect  to the illegal, invalid or unenforceable
provisions.

 

21.                                 Entirety.  This Pledge Agreement, the other Credit Documents
and any Hedging Agreement or agreement pertaining to Cash Management Products
between any Credit Party and any Lender or any affiliate of a Lender represent
the entire agreement of the parties hereto and

 

14

 

thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to this Pledge Agreement, the
other Credit Documents, any such Hedging Agreement or agreement pertaining to
Cash Management Products or the transactions contemplated herein and therein.

 

22.                                 Survival.  All representations and warranties of the
Pledgors hereunder shall survive the execution and delivery of this Pledge
Agreement, the other Credit Documents and any Hedging Agreement or agreement
pertaining to Cash Management Products between any Credit Party and any Lender
or any affiliate of a Lender, the delivery of the Notes and the making of the
Loans and the issuance of the Letters of Credit under the Credit Agreement.

 

23.                                 Marshalling.  Neither the Agent nor any Lender shall be
under any obligation to marshall any assets in favor of any Pledgor or any
other Person or against or in payment of any or all of the Secured Obligations.

 

24.                                 Subordination
and Postponement of Subrogation Rights. Each Pledgor hereby subordinates
any right of subrogation, indemnity, reimbursement or contribution against the
issuer of any Pledged Capital Stock or any other Credit Party arising on
account of any disposition of or other realization on the Pledged Capital Stock
by the Agent pursuant to Section 9 to the rights and interests of the
Agent in the Pledged Collateral Stock and agrees that it shall not attempt to
exercise or realize on any such rights until all of the Credit and Collateral
Termination Events have occurred.

 

25.                                 Conflicts.  To the extent that any provision of this
Pledge Agreement is inconsistent with or conflicts with any provision of the
Credit Agreement, the provision of the Credit Agreement will control.

 

15

 

Each
of the parties hereto has caused a counterpart of this Pledge Agreement to be
duly executed and delivered as of the date first above written.

 

 

	
  BORROWER:

  	
  TRANSMONTAIGNE
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTOR:

  	
  TRANSMONTAIGNE
  PRODUCT SERVICES

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COASTAL
  FUELS MARKETING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  SERVICES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

Accepted
and agreed to as of the date first above written.

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL

  ASSOCIATION, as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

Schedule 2(a)

 

to

 

Amended and Restated Pledge Agreement

 

dated as of May 27, 2005

 

in favor of Wachovia Bank, National Association,

 

as Agent

 

PLEDGED STOCK

 

Pledgor:
TransMontaigne Inc.

 

	
  Name of Subsidiary

  	
   

  	
  Number of

  Shares

  	
   

  	
  Certificate

  Number

  	
   

  	
  Percentage

  Ownership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TransMontaigne
  Product Services Inc.

  	
   

  	
  10,000

  	
   

  	
  2

  	
   

  	
  100%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TransMontaigne
  Transport Inc.

  	
   

  	
  10,000

  	
   

  	
  1

  	
   

  	
  100%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TransMontaigne
  Services Inc.

  	
   

  	
  100

  	
   

  	
  1

  	
   

  	
  100%

  	
   

  

 

Pledgor:
TransMontaigne Product Services Inc.

 

	
  Name of Subsidiary

  	
   

  	
  Number of

  Shares

  	
   

  	
  Certificate

  Number

  	
   

  	
  Percentage

  Ownership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Coastal Fuels
  Marketing, Inc.

  	
   

  	
  300,874

  	
   

  	
  2

  	
   

  	
  100%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Units of limited
  partner interest in TransMontaigne Partners L.P.

  	
   

  	
  2,523,475 subordinated units

  	
   

  	
  uncertificated

  	
   

  	
  together with all subordinated and common units
  owned by all Credit Parties, 46.9%

  	
   

  

 

 

Pledgor:
Coastal Fuels Marketing, Inc.

 

	
  Name of Subsidiary

  	
   

  	
  Number of

  Shares

  	
   

  	
  Certificate

  Number

  	
   

  	
  Percentage

  Ownership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Coastal Tug and
  Barge, Inc.

  	
   

  	
  100

  	
   

  	
  1

  	
   

  	
  100%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Units of limited
  partner interest in TransMontaigne Partners L.P.

  	
   

  	
  348,791 subordinated units and 502,500 common units

  	
   

  	
  uncertificated

  	
   

  	
  together with all subordinated and common units
  owned by all Credit Parties, 46.9%

  	
   

  

 

Pledgor:
TransMontaigne Services Inc.

 

	
  Name of Subsidiary

  	
   

  	
  Number of

  Shares

  	
   

  	
  Certificate

  Number

  	
   

  	
  Percentage

  Ownership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TransMontaigne
  GP L.L.C.

  	
   

  	
   

  	
   

  	
  uncertificated

  	
   

  	
  100%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Units of limited
  partner interest in TransMontaigne Partners L.P.

  	
   

  	
  120,000 common units

  	
   

  	
  uncertificated

  	
   

  	
  together with all subordinated and common units
  owned by all Credit Parties, 46.9%

  	
   

  

 

2

 

Exhibit 4(a)

 

to

 

Amended and Restated Pledge Agreement

 

dated as of May 27, 2005

 

in favor of Wachovia Bank, National Association,

 

as Agent

 

Irrevocable Stock Power

 

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to

 

the following shares of
capital stock of                                           ,
a                         
corporation:

 

	
  No. of Shares

  	
   

  	
  Certificate No.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

and irrevocably appoints                                                                   
its agent and attorney-in-fact to transfer all or any part of such capital
stock and to take all necessary and appropriate action to effect any such
transfer.  The agent and attorney-in-fact
may substitute and appoint one or more persons to act for him.

 

	
   

  	
                                 ,

  
	
   

  	
  a                             
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

EXHIBIT E

 

FORM OF

AMENDED
AND RESTATED SECURITY AGREEMENT

 

THIS
AMENDED AND RESTATED SECURITY AGREEMENT (this “Security
Agreement”) is entered into as of May 27, 2005, by and among
TRANSMONTAIGNE INC. (the “Borrower”), TRANSMONTAIGNE
PRODUCT SERVICES INC., a Delaware corporation, COASTAL
FUELS MARKETING, INC., a Florida corporation, COASTAL TUG
AND BARGE, INC., a Florida corporation, TRANSMONTAIGNE
TRANSPORT INC., a Delaware corporation and TRANSMONTAIGNE
SERVICES INC., a Delaware Corporation (individually a “Guarantor”
and collectively the “Guarantors”; the Guarantors, together with the
Borrower, individually an “Obligor” and collectively the “Obligors”,
which terms shall include any Domestic Restricted Subsidiary which becomes an
Obligor pursuant to Section 7.16 of the Credit Agreement referred
to below) and WACHOVIA BANK, NATIONAL ASSOCIATION,
in its capacity as agent (in such capacity, the “Agent”) for the
financial institutions from time to time party to the Credit Agreement
described below (the “Lenders”).

 

RECITALS

 

WHEREAS,
pursuant to that certain Amended and Restated Senior Secured Working Capital
Credit Facility, dated as of the date hereof (together with all modifications,
renewals, extensions, supplements and replacements from time to time, the “Credit
Agreement”), among the Borrower, the Lenders, JPMorgan Chase Bank, N.A. and
UBS AG, Stamford Branch, as Syndication Agents, Société Générale, New York
Branch and Wells Fargo Foothill, LLC, as the Documentation Agents, and the
Agent, the Lenders have agreed to make Loans and to issue or participate in
Letters of Credit upon the terms and subject to the conditions set forth
therein;

 

WHEREAS,
it is a condition precedent to the effectiveness of the Credit Agreement and
the obligations of the Lenders to make their respective Loans and to issue
Letters of Credit under the Credit Agreement that the Obligors shall have
executed and delivered this Security Agreement to the Agent for the benefit of
the Agent and the Lenders;

 

WHEREAS,
pursuant to the Original Credit Agreement, the Obligors (other than
TransMontaigne Services Inc.) executed and delivered the Security Agreement
referred to therein (the “Original Security Agreement”), and this
Security Agreement is an amendment and restatement of the Original Security
Agreement and the parties intend that the Original Security Agreement be
superceded and replaced by this Security Agreement, but that the security
interests granted pursuant to the Original Security Agreement continue in force
pursuant hereto without interruption and that this Security Agreement not be a
novation of the Original Security Agreement.

 

NOW,
THEREFORE, in consideration of these premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

 

1.                                       Definitions.

 

(a)                                  Unless
otherwise defined herein, capitalized terms used herein shall have the meanings
ascribed to such terms in the Credit Agreement, and the following terms which
are defined in the Uniform Commercial Code from time to time in effect in the
State of New York (the “UCC”) are used herein as so defined:  Accessions, Accounts, As-Extracted
Collateral, Certificate of Title, Commodity Accounts, Commodity Contracts,
Commodities Intermediary, Consumer Goods, Deposit Accounts, Documents,
Equipment, Farm Products, General Intangibles, Instruments, Inventory,
Investment Property, Letter-of-Credit Rights, Manufactured Homes, Proceeds,
Commodities Intermediary, Securities, Security Entitlements, Securities
Accounts, Securities Intermediary and Supporting Obligations.  For purposes of this Security Agreement, the
term “Lender” shall include any Lender or any Affiliate of any Lender
which has entered into any Lender Hedging Agreement or any agreement pertaining
to Cash Management Products.

 

(b)                                 In
addition, the following terms shall have the following meanings:

 

“Collateral Related General Intangibles”: all
general intangibles, including all exchange contracts for the delivery,
exchange, purchase and sale of petroleum products, excluding, however, general
intangibles that do not relate to or materially impact the value, maintenance,
preservation, realization or enforcement of the other Collateral.

 

“Control” 
means (i) in the case of each Deposit Account, “control” as such
term is defined in Section 9-104 of the UCC, (ii) in the case of any
Security Entitlement, “control” as such term is defined in Section 8-106
of the UCC, and (iii) in the case of any Commodity Contract, “control” as
such term is defined in Section 9-106 of the UCC.

 

“Copyright Licenses”:  any written agreement, naming any Obligor as
licensor, granting any right under any Copyright.

 

“Copyrights”: 
(a) all registered United States copyrights in all Works, now
existing or hereafter created or acquired, all registrations and recordings
thereof, and all applications in connection therewith, including, without
limitation, registrations, recordings and applications in the United States
Copyright Office, and (b) all renewals thereof.

 

“Intellectual Property”:  all Copyrights, Copyright Licenses, Patents,
Patent Licenses, Trademarks, Trademark Licenses and all other intellectual
property of the Obligors.

 

“Patent License”:  all agreements, whether written or oral,
providing for the grant by or to an Obligor of any right to manufacture, use or
sell any invention covered by a Patent.

 

“Patents”: 
(a) all letters patent of the United States or any other country
and all reissues and extensions thereof, and (b) all applications for
letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof.

 

2

 

“Pledged Copyrights”: any Collateral Related
General Intangibles that are Copyrights.

 

“Pledged Documents”: any Documents that relate
to any of the assets described in clauses (a) through (j) (other than (f))
of Section 2 hereof.

 

“Pledged Instruments”: any Instruments that
relate to any of the assets described in clauses (a) through (j) (other
than (g)) of Section 2 hereof.

 

“Pledged Intellectual Property”: any Collateral
Related General Intangibles that are Intellectual Property.

 

“Pledged Intellectual Property Schedule”: has the
meaning set forth in Section 3(g) hereof.

 

“Pledged Letter-of-Credit Rights”: any
Collateral Related General Intangibles that are Letter-of-Credit Rights.

 

“Pledged Patents”: any Collateral Related
General Intangibles that are Patents.

 

“Pledged Supporting Obligations” that relate to
any of the assets described in clauses (a) through (j) of Section 2
hereof.

 

“Pledged Trademarks”: any Collateral Related
General Intangibles that are Trademarks.

 

“Secured Obligations”: (a) all
Obligations, howsoever evidenced, created, incurred or acquired, whether
primary, secondary, direct or contingent, or joint and several and (b) all
expenses and charges, legal and otherwise, incurred by the Agent and/or the
Lenders in collecting or enforcing any Obligations or in realizing on or
protecting any security therefor, including without limitation the security
afforded hereunder.

 

“Trademark License”:  means any agreement, written or oral,
providing for the grant by or to an Obligor of any right to use any Trademark,
including, without limitation, any thereof referred to in Schedule 1(b) hereto.

 

“Trademarks”: 
(a) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos
and other source or business identifiers, and the goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any
political subdivision thereof, or otherwise, and (b) all renewals thereof.

 

“Work”: 
any work which is subject to copyright protection pursuant to Title 17
of the United States Code.

 

3

 

2.                                       Grant
of Security Interest in the Collateral. 
To secure the prompt payment and performance in full when due, whether
by lapse of time, acceleration, mandatory prepayment or otherwise, of the
Secured Obligations, each Obligor hereby grants to the Agent, for the benefit
of the Agent and the Lenders, a continuing security interest in, and a right to
set off against, any and all right, title and interest of such Obligor in and
to the following, whether now owned or existing or owned, acquired, or arising
hereafter (collectively, the “Collateral”):

 

(a)                                  all
Accounts;

 

(b)                                 all
cash and Cash Equivalents;

 

(c)                                  all
Pledged Intellectual Property, including all Pledged Copyrights, all Pledged
Patents and all Pledged Trademarks;

 

(d)                                 all
other Collateral Related General Intangibles;

 

(e)                                  all
Deposit Accounts, the Lockbox Accounts, the Cash Concentration Account and any
replacement or successor accounts relating thereto;

 

(f)                                    all
Pledged Documents;

 

(g)                                 all
Pledged Instruments;

 

(h)                                 all
Inventory, including, without limitation, all Petroleum Inventory;

 

(i)                                     all
Investment Property, including, without limitation, all Commodity Accounts,
Commodity Contracts, Securities, Security Entitlements and Securities Accounts,
but excluding 120,000 common units in Partners held by Coastal Fuels Marketing, Inc.
for its long-term incentive plan;

 

(j)                                     all
Pledged Letter-of-Credit Rights;

 

(j)                                     all
agreements, contracts, licenses, or hedging arrangements now or hereafter
entered into by an Obligor that constitute Collateral Related General Intangibles,
as such agreements may be amended or otherwise modified from time to time
(collectively, the “Assigned Agreements”), including, without
limitation, (i) all rights of an Obligor to receive moneys due and to
become due under or pursuant to the Assigned Agreements, (ii) all rights
of an Obligor to receive proceeds of any insurance, indemnity, warranty or
guaranty with respect to the Assigned Agreements, (iii) claims of an
Obligor for damages arising out of or for breach of or default under the
Assigned Agreements and (iv) the right of an Obligor to terminate the
Assigned Agreements, to perform thereunder and to compel performance and
otherwise exercise all remedies thereunder;

 

4

 

(k)                                  all
Pledged Supporting Obligations;

 

(l)                                     all
books, records, ledger cards, files, correspondence, computer programs, tapes,
disks, and related data processing software (owned by such Obligor or in which
it has an interest) that at any time evidence or contain information relating
to any Collateral or are otherwise necessary or helpful in the collection
thereof or realization thereupon; and

 

(m)                               to
the extent not otherwise included, all Accessions, Proceeds and products of any
and all of the foregoing.

 

The
Obligors and the Agent, for itself and on behalf of the Lenders, hereby
acknowledge and agree that the security interest created hereby in the
Collateral (i) constitutes continuing collateral security for all of the
Secured Obligations, whether now existing or hereafter arising and (ii) is
not to be construed as an assignment of any Intellectual Property.  Any of the foregoing to the contrary
notwithstanding, the “Collateral” shall not include, and the security
interest granted herein shall not attach to, any asset subject to a rule of
law, statute or regulation or of a lease agreement or any general intangible
(including a contract, permit, license or franchise) or a Permitted Lien, where
the grant of such security interest would invalidate or constitute a breach or
violation of any such rule of law, statute, regulation, lease agreement or
general intangible or agreement or agreements creating or giving rise to such
Permitted Lien, provided that the limitation set forth in this sentence shall (i) exist
only for so long as such rule of law, statute, regulation, lease agreement
or general intangible or agreement and the Permitted Lien created therein
continue to be effective (and, upon the cessation, termination, expiration of
such rule of law, statute, regulation, lease agreement or general
intangible or Permitted Lien, or if any such rule of law, statute or
regulation is no longer applicable, the security interest granted herein shall
be deemed to have automatically attached to such asset) and (ii) not apply
with respect to any asset if and to the extent that the prohibition or
restriction on the security interest in and to such asset granted in this
Agreement is rendered ineffective under Sections 9-406, 9-407, 9-408, or 9-409
of the UCC.

 

3.                                       Provisions
Relating to Accounts and Assigned Agreements.

 

(a)                                  Anything
herein to the contrary notwithstanding, nothing contained herein shall relieve
any of the Obligors under each of its Accounts and Assigned Agreements to
observe and perform all the conditions and obligations to be observed and
performed by it thereunder.  Neither the
Agent nor any Lender shall have any obligation or liability under any Account
(or any agreement giving rise thereto) and Assigned Agreements by reason of or
arising out of this Security Agreement or the receipt by the Agent or any
Lender of any payment relating to such Account or Assigned Agreement pursuant
hereto, nor shall the Agent or any Lender be obligated in any manner to perform
any of the obligations of an Obligor under or pursuant to any Account (or any
agreement giving rise thereto) or Assigned Agreement to make any payment, to
make any inquiry as to the nature or the sufficiency of any payment received by
it or as to the sufficiency of any performance by any party under any Account
(or any agreement giving rise thereto) or Assigned Agreement, to present or
file any claim, to take any action to enforce any

 

5

 

performance
or to collect the payment of any amounts which may have been assigned to it or
to which it may be entitled at any time or times.

 

(b)                                 Upon
the Agent’s request and at the expense of the Obligors, the Obligors shall
cause independent public accountants or others satisfactory to the Agent to
furnish to the Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the Accounts; provided, however,
that, unless an Event of Default has occurred and is continuing, the Agent
shall not be entitled to make such request more than twice every twelve (12)
months.  Upon the occurrence and during
the continuance of an Event of Default, the Agent in its own name or in the
name of others may communicate with account debtors on the Accounts to verify
with them to the Agent’s satisfaction the existence, amount and terms of any
Accounts.

 

4.                                       Representations
and Warranties. Each Obligor hereby represents and warrants to the Agent,
for the benefit of the Lenders, that until all of the Credit and Collateral
Termination Events have occurred:

 

(a)                                  Ownership.  Such Obligor is the legal and beneficial
owner of its Collateral and has the right to pledge, sell, assign or transfer
the same.

 

(b)                                 Security
Interest/Priority.  This Security
Agreement creates a valid security interest in favor of the Agent, for the
benefit of the Lenders, in the Collateral of such Obligor and, when properly
perfected by filing or upon the Agent’s obtaining Control of such Collateral,
shall constitute a valid first priority, perfected security interest in such
Collateral, to the extent such security interest can be perfected by filing or
through Control under the UCC, free and clear of all Liens except for Permitted
Liens.

 

(c)                                  Consents.  Except for the filing or recording of UCC
termination statements, UCC financing statements or obtaining Control to
perfect the Liens created by this Security Agreement that may be perfected
through the filing of a UCC financing statement or obtaining Control, no
consent or authorization of, filing with, or other act by or in respect of, any
arbitrator or Governmental Authority and no consent of any other Person
(including, without limitation, any stockholder, member or creditor of such
Obligor), is required (except as such have been duly obtained, made or given
and are in full force and effect) (i) for the grant by such Obligor of the
security interest in the Collateral granted hereby or for the execution,
delivery or performance of this Security Agreement by such Obligor or (ii) for
the perfection of such security interest or the exercise by the Agent of the
rights and remedies provided for in this Security Agreement.

 

(d)                                 Types
of Collateral.  None of the
Collateral consists of, or is the Proceeds of, As-Extracted Collateral,
Consumer Goods, Equipment, Farm Products, Manufactured Homes or standing timber
(as such term is used in the UCC).

 

(e)                                  Accounts.  With respect to such Obligor’s Accounts:   (i) the goods sold, rented or leased,
licensed, or assigned and/or services furnished giving rise to each Account are
not subject to any security interest or Lien except the first priority,
perfected security interest granted to the Agent herein and except for
Permitted Liens; (ii) each Account and

 

6

 

the
papers and documents of the applicable Obligor relating thereto are genuine and
in all material respects what they purport to be; (iii) each Account
arises out of a bona fide transaction for goods sold and delivered (or in the
process of being delivered), leased, licensed, or assigned by such Obligor or
for services actually rendered by such Obligor, which transaction was conducted
in the ordinary course of the Obligor’s business and was completed in all
material respects in accordance with the terms of any documents pertaining
thereto; (iv) no Account of such Obligor is evidenced by any Instrument
unless such Instrument has been endorsed over and delivered to, or submitted to
the control of, the Agent; (v) the amount of each Account as shown on the
applicable Obligor’s books and records, and on all invoices and statements
which may be delivered to the Agent with respect thereto, is due and payable to
such Obligor; (vi) to such Obligors’ knowledge, the account debtor with
respect to each Account has the capacity to contract; (vii) to such
Obligor’s knowledge, there are no proceedings or actions that are threatened or
pending against any account debtor whose business is material to the Credit
Parties and their Subsidiaries taken as a whole that are reasonably likely to
have a Material Adverse Change and (viii) no surety bond was required or
given in connection with any Account of such Obligor or the contracts or
purchase orders out of which they arose.

 

(f)                                    Inventory.  None of any Obligor’s Inventory has been
produced or refined by such Obligor, all of such Inventory having been
purchased by such Obligor from third party producers and refineries.

 

(g)                                 Intellectual
Property.

 

(i)                                     As
of the Closing Date, there is no Pledged Intellectual Property, and unless
there is a material change in the business practices of the Obligors, they do
not anticipate the creation or acquisition of any Pledged Intellectual
Property. In the event any Obligor creates or acquires any Pledged Intellectual
Property, it will notify the Agent thereof and furnish to it a Schedule (a
“Pledged Intellectual Property Schedule”) showing all such Pledged
Intellectual Property which is owned by or licensed (pursuant to a written
license) by or to such Obligor as of the date thereof.  Such Pledged Intellectual Property Schedule shall
show the place, if any, in which each such Pledged Intellectual Property is
registered.  Clauses (ii) through (vii) below
shall apply only to any Pledged Intellectual Property that is required to be
described in a Pledged Intellectual Property Schedule furnished pursuant
to the foregoing.

 

(ii)                                  Except
as set forth in a Pledged Intellectual Property Schedule, all such Pledged
Intellectual Property of such Obligor is valid, subsisting, unexpired,
enforceable and has not been abandoned, and such Obligor is legally entitled to
use each of any Pledged Trademarks.

 

(iii)                               Except as set forth in a
Pledged Intellectual Property Schedule, none of such Obligor’s Pledged
Intellectual Property is the subject of any licensing or franchise agreement.

 

7

 

(iv)                              No
holding, decision or judgment has been rendered by any Governmental Authority
which would materially limit, cancel or question the validity of any Pledged
Intellectual Property of such Obligor.

 

(v)                                 No
action or proceeding is pending seeking to limit, cancel or question the
validity of any Pledged Intellectual Property of such Obligor in any material
respect, or which, if adversely determined, would have a material adverse
effect on the value of any such Pledged Intellectual Property.

 

(vi)                              All
applications pertaining to any Pledged Intellectual Property of such Obligor
have been duly and properly filed, and all registrations or letters pertaining
to such Pledged Intellectual Property have been duly and properly filed and
issued, and all of such Pledged Intellectual Property is valid and enforceable.

 

(vii)                           Such Obligor has not made
any assignment or agreement respecting any Pledged Intellectual Property which
would conflict with the security interest of the Agent in such Pledged
Intellectual Property granted hereunder, except as permitted by the Credit
Agreement or other Credit Documents.

 

(h)                                 Pledged
Documents and Pledged Instruments. 
All Pledged Documents and Pledged Instruments are, to such Obligor’s
knowledge, complete, valid, and genuine.

 

(i)                                     Restrictions
on Security Interest.  Such Obligor
is not party to any license or other agreements that would materially limit the
Agent’s (or any of the Agent’s transferees) right to sell, lease, or otherwise
use any Inventory upon the Agent’s proper exercise of its remedies hereunder
and under the other Credit Documents.

 

(j)                                     Purchase
of Collateral.  Within the 12-month
period preceding the Closing Date, none of the Obligors has purchased any of
the Collateral consisting of goods in a transaction that to the Obligors’
knowledge, was outside the ordinary course of the business of such Obligor’s
seller.

 

5.                                       Covenants.  Each Obligor covenants that, until all of the
Credit and Collateral Termination Events have occurred, such Obligor shall:

 

(a)                                  Other
Liens.  Use commercially reasonable
efforts to defend the Collateral against the claims and demands of all other
parties claiming an interest therein, and keep the Collateral free from all
Liens, except for Permitted Liens.  Such
Obligor shall not sell, exchange, transfer, assign, lease or otherwise dispose
of any of the Collateral or any interest therein, except as permitted under the
Credit Agreement or the other Credit Documents.

 

(b)                                 Preservation
of Collateral.  Use commercially
reasonable efforts to keep the Collateral in good order, condition and repair
in all material respects; not use the Collateral in any material respect in
violation of the provisions of this Security Agreement; not use the Collateral
in any material respect in violation of any other

 

8

 

agreement
relating to the Collateral or any policy insuring the Collateral or any
applicable statute, law, bylaw, rule, regulation or ordinance; and not permit
any Collateral to be or become a fixture to real property or an accession to
other personal property unless the Agent has a valid, perfected and first
priority security interest for the benefit of the Agent and the Lenders in such
real or personal property.

 

(c)                                  Possession
or Control of Certain Collateral.  If
(i) any amount in excess of $1,000,000 payable to any Obligor under or in
connection with any of the Collateral shall be or become evidenced by any
Pledged Instrument, or Pledged Supporting Obligation or (ii) if any
Collateral shall be stored or shipped subject to a Document or (iii) if
any Collateral shall consist of Investment Property in the form of certificated
securities, immediately notify the Agent of the existence of such Collateral
and, at the request of the Agent, deliver such Pledged Instrument, Pledged
Supporting Obligation, Pledged Document or Investment Property to the Agent,
duly endorsed in a manner satisfactory to the Agent (or, with respect to
certificated securities, provide duly executed blank stock powers in such form
as may be reasonably requested by the Agent), to be held as Collateral pursuant
to this Security Agreement.  If any
Collateral shall consist of Deposit Accounts, Pledged Letter-of-Credit Rights
or uncertificated Investment Property, execute and deliver (and, with respect
to any Collateral consisting of uncertificated Investment Property, cause the
Securities Intermediary or Commodities Intermediary with respect to such
Investment Property to execute and deliver) to the Agent, upon the Agent’s
request, all control agreements, assignments, instruments or other documents as
reasonably requested by the Agent for the purposes of obtaining and maintaining
Control of such Collateral.

 

(d)                                 Changes
in Corporate Structure or Location. 
Except as otherwise permitted in the Credit Agreement, not, without providing
30 days prior written notice to the Agent and without filing (or confirming
that the Agent has filed) such amendments to any previously filed financing
statements as the Agent may require, (i) alter its corporate existence or,
in one transaction or a series of transactions, merge into or consolidate with
any other entity, or sell all or substantially all of its assets, (ii) change
its state of incorporation or formation, (iii) change its registered
corporate name, (iv) change the location of its chief executive office and
chief place of business (as well as its books and records) from the locations
set forth on Schedule 4(a)(i) hereto.

 

(e)                                  Inspection.  Allow the Agent or its representatives to
visit and inspect the Collateral as set forth in Section 7.7 of the
Credit Agreement.

 

(f)                                    Perfection
of Security Interest.  Such Obligor
hereby authorizes the Agent to prepare and file such financing statements
(including renewal statements and in lieu statements) or amendments thereof or
supplements thereto or other instruments as the Agent may from time to time
deem necessary or appropriate to perfect and maintain the security interests
granted hereunder in accordance with the UCC and, subject to Permitted Liens,
to ensure the first priority of such security interests.  Any financing statement filed by the Agent
may contain a general description of the collateral covered thereby, as
permitted by the UCC, which states that the security interest attaches to all
personal property or to all assets of the debtor.  Such Obligor shall from time to time upon
request by the Agent also execute and deliver to the Agent such agreements,
assignments or instruments (including

 

9

 

affidavits,
notices, reaffirmations and amendments and restatements of existing documents,
as the Agent may reasonably request) and do all such other things as the Agent
may reasonably deem necessary or appropriate (i) to assure the Agent that
its security interests hereunder are perfected and, subject to Permitted Liens,
of the first priority, including, without limitation, (A) such financing
statements (including renewal statements and in lieu statements) or amendments
thereof or supplements thereto or other instruments as the Agent may from time
to time reasonably request in order to perfect and maintain the security
interests granted hereunder and to ensure the first priority (subject to
Permitted Liens) thereof in accordance with the UCC, (B) with regard to
any Pledged Copyrights, a Notice of Grant of Security Interest in Copyrights
for filing with the United States Copyright Office in the form of Schedule 5(f)(i) attached
hereto, (C) with regard to any Pledged Patents, a Notice of Grant of
Security Interest in Patents for filing with the United States Patent and
Trademark Office in the form of Schedule 5(f)(ii) attached
hereto and (D) with regard to any Pledged Trademarks, a Notice of Grant of
Security Interest in Trademarks for filing with the United States Patent and
Trademark Office in the form of Schedule 5(f)(iii) attached
hereto, (ii) to consummate the transactions contemplated hereby and (iii) to
otherwise protect and assure the Agent of its rights and interests
hereunder.  Each Obligor hereby
irrevocably authorizes and appoints the Agent as such Obligor’s
attorney-in-fact, at such Obligor’s cost and expense, to file, record and
register any and all of the Lenders’ security interest in Pledged Intellectual
Property of the Obligors with the United States Patent and Trademark Office or
the United States Copyright Office.  In
the event for any reason the law of any jurisdiction other than New York becomes or is applicable to the Collateral of any Obligor
or any part thereof, or to any of the Secured Obligations, such Obligor agrees
from time to time upon request of the Agent to execute and deliver all such
instruments and to do all such other things as the Agent in its reasonable
discretion deems necessary or appropriate to preserve, protect and enforce the
security interests of the Agent and the first priority thereof (subject to
Permitted Liens) under the law of such other jurisdiction (and, if such Obligor
shall fail to do so promptly upon the request of the Agent, then the Agent may
execute any and all such requested documents on behalf of such Obligor pursuant
to the power of attorney granted hereinabove). 
Such Obligor agrees to mark its books and records to reflect the
security interest of the Agent in the Collateral.

 

(g)                                 Treatment
of Accounts.  (i) Comply with
all provisions of the Credit Agreement relating to the establishment and
maintenance of the Lockboxes, Lockbox Accounts and the Cash Concentration
Account, (ii) comply in all material respects with all reporting
requirements set forth in the Credit Agreement with respect to Accounts, (iii) not
grant or extend the time for payment of any Account, or compromise or settle
any Account for less than the full amount thereof, or release any person or
property, in whole or in part, from payment thereof, or allow any credit or
discount thereon, in each case other than as normal and customary in the
ordinary course of such Obligor’s business, (iv) maintain at its principal
place of business a record of Accounts consistent with its customary business
practices, (v) upon the occurrence and during the continuation of any
Event of Default, set aside and hold as trustee for the Agent any merchandise
that is returned by a customer or account debtor or otherwise recovered.  Unless and until an Event of Default occurs
and is continuing, such Obligor may settle and adjust disputes and claims with
its customers and account debtors, handle returns and recoveries and grant
discounts,

 

10

 

credits
and allowances in the ordinary course of its business as presently conducted
and otherwise for amounts and on terms which such Obligor in good faith
considers advisable.  However, upon the
occurrence of any Event of Default and during the continuation thereof, if so
instructed by the Agent, such Obligor shall settle and adjust disputes and
claims, at no expense to the Agent, but no discount, credit or allowance other
than on normal trade terms in the ordinary course of business shall be granted
to any customer or account debtor and no returns of merchandise shall be
accepted by such Obligor without the Agent’s consent.  The Agent may (but shall not be required to),
at all times upon the occurrence of any Event of Default and during the
continuation thereof, settle or adjust disputes and claims directly with
customers or account debtors for amounts and upon terms which the Agent
considers advisable.

 

(h)                                 Covenants
Relating to Inventory.

 

(i)                                     Use
commercially reasonable efforts to maintain, keep and preserve its Inventory in
good salable condition at its own cost and expense, in accordance with the
provisions of the Credit Agreement.

 

(ii)                                  Comply
with all reporting requirements set forth in the Credit Agreement with respect
to Inventory.

 

(iii)                               If any item of Inventory
having a book value of greater than $1,000,000 is at any time evidenced by a
Pledged Document, promptly upon request by the Agent, deliver such document of
title to the Agent.

 

(i)                                     Covenants
Relating to Pledged Copyrights. The covenants contained in this Section 5(i) apply
only to any Pledged Copyright that is required to be described in a Pledged
Intellectual Property Schedule furnished pursuant to the foregoing.

 

(i)                                     Employ
the Pledged Copyright for each Work with such notice of copyright as may be
required by law to secure copyright protection.

 

(ii)                                  Not
do any act or knowingly omit to do any act whereby any material Pledged
Copyright may become invalidated and (A) not do any act, or knowingly omit
to do any act, whereby any material Pledged Copyright may become injected into
the public domain; (B) notify the Agent immediately if it knows, or has
reason to know, that any material Pledged Copyright may become injected into
the public domain or of any adverse determination or development (including,
without limitation, the institution of, or any such determination or development
in, any court or tribunal in the United States or any other country) regarding
such Obligor’s ownership of any such Pledged Copyright or its validity; (C) take
all necessary steps as it shall deem appropriate under the circumstances, to
maintain and pursue each application (and to obtain the relevant registration)
and to maintain each registration of each material Pledged Copyright owned by
such Obligor including, without limitation, filing of applications for renewal
where necessary; and (D) promptly notify the Agent of any material
infringement of any material Pledged Copyright of such Obligor of which it
becomes aware and take

 

11

 

such
actions as it shall reasonably deem appropriate under the circumstances to
protect such Pledged Copyright, including, where appropriate, the bringing of
suit for infringement, seeking injunctive relief and seeking to recover any and
all damages for such infringement.

 

(iii)                               Not make any assignment
or agreement in conflict with the security interest in the Pledged Copyrights
of such Obligor hereunder.

 

(j)                                     Covenants
Relating to Pledged Patents and Pledged Trademarks.  The covenants contained in this Section 5(j)
apply only to any Pledged Patents and Pledged Trademarks that are required to
be described in a Pledged Intellectual Property Schedule furnished
pursuant to the foregoing.

 

(i)                                     (A) Continue
to use each Pledged Trademark on each and every trademark class of goods
applicable to its current line as reflected in its current catalogs, brochures
and price lists to maintain such Pledged Trademark in full force free from any
claim of abandonment for non-use, (B) maintain as in the past the quality
of products and services offered under such Pledged Trademark, (C) employ
such Pledged Trademark with the appropriate notice of registration, (D) not
adopt or use any mark which is confusingly similar or a colorable imitation of
such Pledged Trademark unless the Agent, for the benefit of the Lenders, shall
obtain a perfected security interest in such mark pursuant to this Security
Agreement, and (E) not (and not permit any licensee or sublicensee thereof
to) do any act or knowingly omit to do any act whereby any Pledged Trademark
may become invalidated.

 

(ii)                                  Not
do any act, or omit to do any act, whereby any Pledged Patent may become
abandoned or dedicated.

 

(iii)                               Promptly notify the
Agent if it knows, or has reason to know, that any application or registration
relating to any Pledged Patent or Pledged Trademark may become abandoned or
dedicated, or of any adverse determination or development (including, without
limitation, the institution of, or any such determination or development in,
any proceeding in the United States Patent and Trademark Office or any court or
tribunal in any country) regarding such Obligor’s ownership of any such Pledged
Patent or Pledged Trademark or its right to register the same or to keep,
maintain and use the same.

 

(iv)                              Whenever
such Obligor, either by itself or through an agent, employee, licensee or designee,
shall file an application for the registration of any Pledged Patent or Pledged
Trademark with the United States Patent and Trademark Office or any similar
office or agency in any other country or any political subdivision thereof,
such Obligor shall report such filing to the Agent and the Lenders within five
Business Days after the last day of the fiscal quarter in which such filing
occurs.  Upon request of the Agent, such
Obligor shall execute and deliver any and all agreements, instruments, documents
and papers as the Agent may request to evidence the Agent’s and the Lenders’
security interest in any Pledged

 

12

 

Patent
or Pledged Trademark and the goodwill and general intangibles of such Obligor
relating thereto or represented thereby.

 

(v)                                 Take
all reasonable and necessary steps, including, without limitation, in any
proceeding before the United States Patent and Trademark Office, or any similar
office or agency in any other country or any political subdivision thereof, to
maintain and pursue each application (and to obtain the relevant registration)
and to maintain each registration of the Pledged Patents and Pledged
Trademarks, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability.

 

(vi)                              Promptly
notify the Agent and the Lenders after it learns that any Pledged Patent or
Pledged Trademark included in the Collateral is infringed, misappropriated or
diluted by a third party and promptly sue for infringement, misappropriation or
dilution, to seek injunctive relief where appropriate and to recover any and
all damages for such infringement, misappropriation or dilution, or take such
other actions as it shall reasonably deem appropriate under the circumstances
to protect such Pledged Patent or Pledged Trademark.

 

(vii)                           Not make any assignment or
agreement in conflict with the security interest in the Pledged Patents or
Pledged Trademarks of such Obligor created hereunder or under any other Credit
Document.

 

(k)                                  Bank
Accounts.  At all times, maintain the
Lockbox Accounts and the Cash Concentration Account and any replacement or
successor accounts relating thereto in accordance with the terms of the Deposit
Account Control Agreements and the Credit Agreement, as applicable, and cause
all amounts received in the Lockboxes relating thereto to be deposited into the
applicable Lockbox Account or the Cash Concentration Account, as the case may
be, and to be applied as set forth in the applicable Deposit Account Control
Agreement and the Credit Agreement, as applicable.  All amounts on deposit in the Lockbox
Accounts, the Cash Concentration Account and any
replacement or successor account relating thereto shall be subject to the Lien
of the Agent hereunder.

 

(l)                                     Insurance.  Insure, repair and replace the Collateral of
such Obligor as set forth in the Credit Agreement.  All insurance proceeds shall be subject to
the security interest of the Agent hereunder.

 

(m)                               Covenants
Relating to the Assigned Agreements.

 

(i)                                     Upon
the reasonable request of the Agent, such Obligor shall, at its expense, (A) furnish
to the Agent copies of all material notices, requests and other documents
received by such Obligor under or pursuant to the Assigned Agreements, and such
other information and reports regarding the Assigned Agreements and (B) make
to any other party to any Assigned Agreement such demands and requests for
information and reports or for action as such Obligor is entitled to make
thereunder.

 

13

 

(ii)                                  Unless
such Obligor believes it is necessary in the prudent conduct of its business,
such Obligor shall not (A) cancel or terminate any Assigned Agreement of
such Obligor or consent to or accept any cancellation or termination thereof; (B) amend
or otherwise modify any Assigned Agreement of such Obligor or give any consent,
waiver or approval thereunder; (C) waive any material default under or
breach of any Assigned Agreement of such Obligor; or (D) take any other
action in connection with any Assigned Agreement of such Obligor which would
materially impair the value of the interest or rights of such Obligor
thereunder or which would impair the interests or rights of the Agent.

 

6.                                       Special
Provisions Relating to Accounts. 
Anything herein to the contrary notwithstanding, nothing contained
herein shall relieve any of the Obligors from any obligation under each of the
Accounts to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise to each such Account. 
Neither the Agent nor any Lender shall have any obligation or liability
under any Account (or any agreement giving rise thereto) by reason of or
arising out of this Security Agreement or the receipt by the Agent or any
Lender of any payment relating to such Account pursuant hereto, nor shall the
Agent or any Lender be obligated in any manner to perform any of the
obligations of an Obligor under or pursuant to any Account (or any agreement
giving rise thereto), to make any payment, to make any inquiry as to the nature
or the sufficiency of any payment received by it or as to the sufficiency of
any performance by any party under any Account (or any agreement giving rise
thereto), to present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

 

7.                                       Special
Provisions Regarding Inventory.

 

(a)                                  Notwithstanding
anything to the contrary contained in this Security Agreement, each Obligor
may, unless and until an Event of Default occurs and is continuing and the
Agent instructs such Obligor otherwise, without further consent or approval of
the Agent, use, consume, sell, rent, lease and exchange the Inventory in the
ordinary course of its business as presently conducted, whereupon, in the case
of such a sale or exchange, the security interest created hereby in the
Inventory so sold or exchanged (but not in any proceeds arising from such sale
or exchange) shall cease immediately without any further action on the part of
the Agent.

 

(b)                                 Upon
the Lenders’ making any Loan pursuant to the Credit Agreement or the Issuing
Bank issuing any Letter of Credit pursuant to the Credit Agreement, each
Obligor shall be deemed to have warranted that all warranties of such Obligor
set forth in this Security Agreement with respect to its Inventory are true and
correct in all material respects with respect to such Inventory.

 

8.                                       Performance
of Obligations; Advances by Agent. 
Upon the occurrence and during the continuance of an Event of Default,
upon the failure of any Obligor to perform any of the covenants and agreements
contained herein, the Agent may, in its reasonable discretion, perform or cause
to be performed the same and in so doing may (but shall have no obligation to
do so) expend such sums as the Agent may reasonably deem advisable in the
performance thereof, including,

 

14

 

without limitation, the
payment of any insurance premiums, the payment of any taxes, a payment to
obtain a release of a Lien or potential Lien (other than a Permitted Lien),
expenditures made in defending against any adverse claim (other than a
Permitted Lien) and all other expenditures which the Agent or the Lenders may
make for the protection of the security interest hereof or may be compelled to
make by operation of law.  All such sums
and amounts so expended shall be repayable by the Obligors as provided in Section 7.9
of the Credit Agreement, shall constitute additional Secured Obligations and
shall bear interest from the date said amounts are expended at the default rate
set forth in Section 4.2 of the Credit Agreement for Revolving Loans
that are Base Rate Loans.  No such
performance of any covenant or agreement by the Agent or the Lenders on behalf
of any Obligor, and no such advance or expenditure therefor, shall relieve the
Obligors of any default under the terms of this Security Agreement, the other
Credit Documents or any Lender Hedging Agreement.  The Agent may make any payment hereby
authorized in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim
except to the extent such payment is being contested in good faith by an
Obligor in appropriate proceedings and against which adequate reserves are
being maintained in accordance with GAAP.

 

9.                                       Events
of Default.

 

An
Event of Default under the Credit Agreement shall be an Event of Default
hereunder (an “Event of Default”).

 

10.                                 Remedies.

 

(a)                                  General
Remedies.  Upon the occurrence of an
Event of Default and during continuation thereof, the Agent and the Lenders
shall have, in addition to the rights and remedies provided herein, in the
Credit Documents, or (as to any Lender or its affiliate that is party thereto)
in any Lender Hedging Agreement or in any
agreement pertaining to Cash Management Products or by law (including, but not
limited to, levy of attachment, garnishment and the rights and remedies set
forth in the Uniform Commercial Code of the jurisdiction applicable to the
affected Collateral), the rights and remedies of a secured party under the UCC
(regardless of whether the UCC is the law of the jurisdiction where the rights
and remedies are asserted and regardless of whether the UCC applies to the
affected Collateral), and further, the Agent may, with or without judicial
process or the aid and assistance of others, (i) enter on any premises on
which any of the Collateral may be located and, without resistance or
interference by the Obligors, take possession of the Collateral, (ii) dispose
of any Collateral on any such premises, (iii) require the Obligors to
assemble and make available to the Agent at the expense of the Obligors any
Collateral at any place and time designated by the Agent which is reasonably
convenient to both parties, (iv) remove any Collateral from any such
premises for the purpose of effecting sale or other disposition thereof, and/or
(v) at any place and time or times, sell and deliver any or all Collateral
held by or for it at public or private sale, by one or more contracts, in one
or more parcels, for cash, upon credit or otherwise, at such prices and upon
such terms as the Agent deems advisable, in its sole discretion. The Obligors
agree that they shall not assert that any action taken by the Agent in
compliance with any applicable state or federal law in the conduct of such
sale, nor in disclaiming any warranties relating to the Collateral, made such
sale not

 

15

 

commercially
reasonable.  In addition to all other
sums due the Agent and the Lenders with respect to the Secured Obligations, the
Obligors shall pay the Agent and each of the Lenders all reasonable costs and
expenses incurred by the Agent or any such Lender, including, but not limited
to, reasonable attorneys’ fees and court costs, in obtaining or liquidating the
Collateral, in enforcing payment of the Secured Obligations, or in the
prosecution or defense of any action or proceeding by or against the Agent or
the Lenders or the Obligors concerning any matter arising out of or connected
with this Security Agreement, any Collateral or the Secured Obligations,
including, without limitation, any of the foregoing arising in, arising under
or related to a case under any bankruptcy, insolvency or similar law.  To the extent the rights of notice cannot be
legally waived hereunder, each Obligor agrees that any requirement of
reasonable notice shall be met if such notice is personally served on or
mailed, postage prepaid, to the Obligors in accordance with the notice
provisions of Section 14.4 of the Credit Agreement at least ten (10) days
before the time of sale or other event giving rise to the requirement of such
notice.  The Agent and the Lenders shall
not be obligated to make any sale or other disposition of the Collateral
regardless of notice having been given. 
To the extent permitted by law, the Agent and any Lender may be a
purchaser at any such sale.  To the
extent permitted by applicable law, each of the Obligors hereby waives all of
its rights of redemption with respect to any such sale.  Subject to the provisions of applicable law,
the Agent and the Lenders may postpone or cause the postponement of the sale of
all or any portion of the Collateral by announcement at the time and place of
such sale, and such sale may, without further notice, to the extent permitted
by law, be made at the time and place to which the sale was postponed, or the
Agent and the Lenders may further postpone such sale by announcement made at
such time and place.

 

(b)                                 Remedies
Relating to Accounts.  Upon the
occurrence of an Event of Default and during the continuation thereof, whether
or not the Agent has exercised any or all of its rights and remedies hereunder,
the Agent shall have the right to (i) enforce any Obligor’s rights against
any account debtors and obligors on such Obligor’s Accounts (ii) notify
(or cause its designee to notify) any Obligor’s customers and account debtors
that the Accounts of such Obligor have been assigned to the Agent or of the
Agent’s security interest therein, (iii) (either in its own name or in the
name of an Obligor or both) demand, collect (including, without limitation,
through the Lockboxes), receive, take receipt for, sell, sue for, compound,
settle, compromise and give acquittance for any and all amounts due or to
become due on any Account, and (iv) in the Agent’s discretion, file any
claim or take any other action or proceeding to protect and realize upon the
security interest of the Lenders in the Accounts.  Each Obligor acknowledges and agrees that,
after the occurrence and during the continuance of any Event of Default, the
Proceeds of its Accounts remitted to or on behalf of the Agent in accordance
with the provisions hereof shall be solely for the Agent’s own convenience and
that such Obligor shall not have any right, title or interest in such Proceeds
or in any such other amounts except as expressly provided herein.  The Agent and the Lenders shall have no
liability or responsibility to any Obligor for acceptance of a check, draft or
other order for payment of money bearing the legend “payment in full” or words
of similar import or any other restrictive legend or endorsement or be
responsible for determining the correctness of any remittance.  The Agent shall have no obligation to apply
or give credit for any item included in proceeds of Accounts or other
Collateral until the applicable Lockbox Bank has received final payment
therefor at its offices in cash. 
However, if the Agent does

 

16

 

permit
credit to be given for any item prior to a Lockbox Bank receiving final payment
therefor and such Lockbox Bank fails to receive such final payment or an item
is charged back to the Agent or any Lockbox Bank for any reason, the Agent may
at its election in either instance charge the amount of such item back against
any such Lockbox Accounts, together with interest thereon at a rate per annum
equal to the Default Rate set forth in Section 4.2 of the Credit
Agreement.  Each Obligor hereby agrees to
indemnify the Agent and the Lenders from and against all liabilities, damages,
losses, actions, claims, judgments, costs, expenses, charges and reasonable
attorneys’ fees suffered or incurred by the Agent or the Lenders (each, an “Indemnified
Party”) because of the maintenance of the foregoing arrangements except as
relating to or arising out of the gross negligence or willful misconduct of an
Indemnified Party or its officers, employees or agents.  In the case of any investigation, litigation
or other proceeding, the foregoing indemnity shall be effective whether or not
such investigation, litigation or proceeding is brought by an Obligor, its
directors, shareholders or creditors or an Indemnified Party or any other
Person or any other Indemnified Party is otherwise a party thereto.  The Agent shall have no liability or
responsibility to any Obligor for a Lockbox Bank accepting any check, draft or
other order for payment of money bearing the legend “payment in full” or words
of similar import or any other restrictive legend or endorsement whatsoever or
be responsible for determining the correctness of any remittance (it being
understood that this sentence shall in no way affect the liability or
responsibility of any such Lockbox Bank).

 

(c)                                  Access.  In addition to the rights and remedies
hereunder, upon the occurrence of an Event of Default and during the
continuation thereof, (i) the Agent shall have the right to enter and
remain upon the various premises of the Obligors without cost or charge to the
Agent, and use the same, together with materials, supplies, books and records
of the Obligors for the purpose of collecting and liquidating the Collateral,
or for preparing for sale and conducting the sale of the Collateral, whether by
foreclosure, auction or otherwise, (ii) the Agent may remove Collateral,
or any part thereof, from such premises and/or any records with respect
thereto, in order to effectively collect or liquidate such Collateral and (iii) if
the Agent exercises its right to take possession of the Collateral, each
Obligor shall also at its expense perform any and all other steps reasonably
requested by the Agent to preserve and protect the security interest hereby
granted in the Collateral, such as placing and maintaining signs indicating the
security interest of the Agent, appointing overseers for the Collateral and
maintaining inventory records.

 

(d)                                 Nonexclusive
Nature of Remedies.  Failure by the
Agent or the Lenders to exercise any right, remedy or option under this Security
Agreement, any other Credit Document, any Lender Hedging Agreement or as provided by law, or any delay by the Agent or the
Lenders in exercising the same, shall not operate as a waiver of any such
right, remedy or option.  No waiver
hereunder shall be effective unless it is in writing, signed by the party
against whom such waiver is sought to be enforced and then only to the extent
specifically stated, which in the case of the Agent or the Lenders shall only
be granted as provided herein.  To the
extent permitted by law, neither the Agent, the Lenders, nor any party acting
as attorney for the Agent or the Lenders, shall be liable hereunder for any
acts or omissions or for any error of judgment or mistake of fact or law

 

17

 

other
than their gross negligence or willful misconduct hereunder.  The rights and remedies of the Agent and the
Lenders under this Security Agreement shall be cumulative and not exclusive of
any other right or remedy which the Agent or the Lenders may have.

 

(e)                                  Retention
of Collateral.  The Agent may, after
providing the notices required by Section 9-620 of the UCC or otherwise
complying with the requirements of applicable law of the relevant jurisdiction,
accept or retain the Collateral in full or partial satisfaction of the Secured
Obligations.  Unless and until the Agent
shall have provided such notices, however, the Agent shall not be deemed to
have retained any Collateral in satisfaction of any Secured Obligations for any
reason.

 

(f)                                    Deficiency.  In the event that the proceeds of any sale,
collection or realization are insufficient to pay all amounts to which the
Agent or the Lenders are legally entitled, the Obligors shall be jointly and
severally liable for the deficiency, together with interest thereon at the
Default Rate set forth in Section 4.2 of the Credit Agreement,
together with the costs of collection and the reasonable fees of any attorneys
employed by the Agent to collect such deficiency.  Any surplus remaining after the full payment
and satisfaction of the Secured Obligations shall be returned to the Obligors
or to whomsoever a court of competent jurisdiction shall determine to be
entitled thereto.

 

(g)                                 Other
Security.  To the extent that any of
the Secured Obligations are now or hereafter secured by property other than the
Collateral (including, without limitation, real and personal  property owned by an Obligor), or by a
guarantee, endorsement or property of any other Person, then the Agent and the
Lenders shall have the right to proceed against such other property, guarantee
or endorsement upon the occurrence of any Event of Default, and the Agent and
the Lenders have the right, in their sole discretion, to determine which
rights, security, liens, security interests or remedies the Agent and the
Lenders shall at any time pursue, relinquish, subordinate, modify or take with
respect thereto, without in any way modifying or affecting any of them or any
of the Agent’s and the Lenders’ rights or the Secured Obligations under this
Security Agreement, under any other of the Credit Documents or under any Lender
Hedging Agreement or agreement pertaining to Cash Management Products (to the
extent the obligations of such Obligor thereunder constitute Secured
Obligations).

 

11.                                 Rights
of the Agent.

 

(a)                                  Power
of Attorney.  Each Obligor hereby
designates and appoints the Agent, on behalf of the Lenders, and each of its
designees or agents, as attorney-in-fact of such Obligor, irrevocably and with
power of substitution, with authority to take any or all of the following
actions upon the occurrence and during the continuation of an Event of Default:

 

(i)                                     to
demand, collect, settle, compromise, adjust, give discharges and releases, all
as the Agent may reasonably determine;

 

18

 

(ii)                                  to
commence and prosecute any actions at any court for the purposes of collecting
any Collateral and enforcing any other right in respect thereof;

 

(iii)                               to defend, settle,
adjust or compromise any action, suit or proceeding brought and, in connection
therewith, give such discharge or release as the Agent may deem reasonably
appropriate;

 

(iv)                              to
receive, open and dispose of mail addressed to an Obligor and endorse checks,
notes, drafts, acceptances, money orders, bills of lading, warehouse receipts
or other instruments or documents evidencing payment, shipment or storage of
the goods giving rise to the Collateral of such Obligor, or securing or
relating to such Collateral, on behalf of and in the name of such Obligor;

 

(v)                                 to
sell, assign, transfer, make any agreement in respect of, or otherwise deal
with or exercise rights in respect of, any Collateral or the goods or services
which have given rise thereto, as fully and completely as though the Agent were
the absolute owner thereof for all purposes;

 

(vi)                              to
adjust and settle claims under any insurance policy relating thereto;

 

(vii)                           to execute and deliver all
assignments, conveyances, statements, financing statements, renewal financing
statements, security agreements, affidavits, notices and other agreements,
instruments and documents that the Agent may determine necessary in order to
perfect and maintain the security interests and liens granted in this Security
Agreement and in order to fully consummate all of the transactions contemplated
herein;

 

(viii)                        to institute any foreclosure
proceedings that the Agent may deem appropriate; and

 

(ix)                                to
do and perform all such other acts and things as the Agent may reasonably deem
to be necessary, proper or convenient in connection with the Collateral.

 

This
power of attorney is a power coupled with an interest and shall be irrevocable
until all Credit and Collateral Termination Events have occurred.  The Agent shall be under no duty to exercise
or withhold the exercise of any of the rights, powers, privileges and options
expressly or implicitly granted to the Agent in this Security Agreement, and
shall not be liable for any failure to do so or any delay in doing so.  The Agent shall not be liable for any act or
omission or for any error of judgment or any mistake of fact or law in its
individual capacity or its capacity as attorney-in-fact except acts or
omissions resulting from its gross negligence or willful misconduct.  This power of attorney is conferred on

 

19

 

the
Agent solely to protect, preserve and realize upon its security interest in the
Collateral.

 

(b)                                 Assignment
by the Agent.  Subject to the terms
of the Credit Agreement, the Agent may from time to time assign the Secured
Obligations and any portion thereof and/or the Collateral and any portion
thereof, and the assignee shall be entitled to all of the rights and remedies
of the Agent under this Security Agreement in relation thereto.

 

(c)                                  The
Agent’s Duty of Care.  Other than the
exercise of reasonable care to assure the safe custody of the Collateral while
being held by the Agent hereunder, the Agent shall have no duty or liability to
preserve rights pertaining thereto, it being understood and agreed that the
Obligors shall be responsible for preservation of all rights in the Collateral,
and the Agent shall be relieved of all responsibility for the Collateral upon
surrendering it or tendering the surrender of it to the Obligors.  The Agent shall be deemed to have exercised
reasonable care in the custody and preservation of the Collateral in its
possession if the Collateral is accorded treatment substantially equal to that
which the Agent accords its own property, which shall be no less than the
treatment employed by a reasonable and prudent agent in the industry, it being
understood that the Agent shall not have responsibility for taking any
necessary steps to preserve rights against any parties with respect to any of
the Collateral.  In the event of a public
or private sale of Collateral pursuant to Section 11 hereof, the
Agent shall have no obligation to clean-up, repair or otherwise prepare the
Collateral for sale.

 

12.                                 Application
of Proceeds.  Any amounts on deposit
in the Lockbox Accounts, the Cash Concentration Account, or any other deposit
account over which the Agent has Control, and any replacement or successor
accounts relating thereto, as applicable, shall be applied by the Agent in
accordance with the terms of the Credit Agreement and the Deposit Account
Control Agreement relating thereto.  Upon
the occurrence and during the continuation of an Event of Default, any payments
in respect of the Secured Obligations and any proceeds of the Collateral, when
received by the Agent or any of the Lenders in cash or its equivalent, will be
applied in reduction of the Secured Obligations in the order set forth in Section 2.8
of the Credit Agreement, and each Obligor irrevocably waives the right to
direct the application of such payments and proceeds and acknowledges and
agrees that the Agent shall have the continuing and exclusive right to apply
and reapply any and all such payments and proceeds in the Agent’s sole
discretion, notwithstanding any entry to the contrary upon any of its books and
records.

 

13.                                 Costs
of Counsel.  If at any time
hereafter, whether upon the occurrence of an Event of Default or not, the Agent
employs counsel to prepare or consider amendments, waivers or consents with
respect to this Security Agreement, or to take action or make a response in or
with respect to any legal or arbitral proceeding relating to this Security
Agreement or relating to the Collateral, or to protect the Collateral or
exercise any rights or remedies under this Security Agreement or with respect
to the Collateral, then the Obligors agree to promptly pay in accordance with Section 7.9
of the Credit Agreement any and all such reasonable costs and expenses of the
Agent or the Lenders, all of which costs and expenses shall constitute Secured
Obligations hereunder.

 

20

 

14.                                 Continuing
Agreement.

 

(a)                                  This
Security Agreement shall be a continuing agreement in every respect and shall
remain in full force and effect until all of the Credit and Collateral
Termination Events have occurred.  Upon
the occurrence of all of the Credit and Collateral Termination Events, this
Security Agreement shall be automatically terminated and the Agent shall, upon
the request and at the expense of the Obligors, forthwith release all of its
liens and security interests hereunder and shall execute, if necessary, and
deliver all UCC termination statements and/or other documents reasonably
requested by the Obligors evidencing such termination.  Notwithstanding the foregoing all releases
and indemnities provided hereunder shall survive termination of this Security
Agreement.

 

(b)                                 This
Security Agreement shall continue to be effective or be automatically
reinstated, as the case may be, if at any time payment, in whole or in part, of
any of the Secured Obligations is rescinded or must otherwise be restored or
returned by the Agent or any Lender as a preference, fraudulent conveyance or
otherwise under any bankruptcy, insolvency or similar law, all as though such
payment had not been made; provided that in the event payment of all or
any part of the Secured Obligations is rescinded or must be restored or
returned, all reasonable costs and expenses (including without limitation any
reasonable legal fees and disbursements) incurred by the Agent or any Lender in
defending and enforcing such reinstatement shall be deemed to be included as a
part of the Secured Obligations.

 

15.                                 Amendments;
Waivers; Modifications.  This
Security Agreement and the provisions hereof may not be amended, waived,
modified, changed, discharged or terminated except as set forth in Section 14.9
of the Credit Agreement.

 

16.                                 Successors
in Interest.  This Security Agreement
shall create a continuing security interest in the Collateral and shall be
binding upon each of the parties hereto, and their respective successors and
assigns, and shall inure, together with all rights and remedies of each of the
parties hereto and their respective permitted successors and assigns; provided,
however, that none of the Obligors may assign its rights or delegate its
duties hereunder without the prior written consent of each Lender or the
Required Lenders, as required by the Credit Agreement.

 

17.                                 Notices.  All notices required or permitted to be given
under this Security Agreement shall be in conformance with Section 14.4
of the Credit Agreement.

 

18.                                 Counterparts.  This Security Agreement may be executed in
any number of counterparts, each of which where so executed and delivered shall
be an original, but all of which shall constitute one and the same instrument.  It shall not be necessary in making proof of
this Security Agreement to produce or account for more than one such
counterpart.

 

19.                                 Headings.  The headings of the sections and subsections
hereof are provided for convenience only and shall not in any way affect the
meaning, construction or interpretation of any provision of this Security
Agreement.

 

21

 

20.                                 Governing
Law; Submission to Jurisdiction and Service of Process; Arbitration.  THIS SECURITY AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO THE CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
The terms of Sections 14.2, 14.3 and 14.4 of the Credit
Agreement are incorporated herein by reference, mutatis
mutandis, and the parties hereto agree to such terms.

 

21.                                 Waiver
of Jury Trial.  TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH OBLIGOR AND THE AGENT HEREBY WAIVE ANY RIGHT
TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS SECURITY
AGREEMENT, THE CREDIT DOCUMENTS OR ANY OTHER AGREEMENTS OR TRANSACTIONS RELATED
HERETO OR THERETO.

 

22.                                 Severability.  If any provision of any of the Security
Agreement is determined to be illegal, invalid or unenforceable, such provision
shall be fully severable and the remaining provisions shall remain in full
force and effect and shall be construed without giving effect to the illegal,
invalid or unenforceable provisions.

 

23.                                 Entirety.  This Security Agreement, the other Credit
Documents, the Lender Hedging Agreements and the agreements pertaining to Cash
Management Products represent the entire agreement of the parties hereto and
thereto, and supersede all prior agreements and understandings, oral or
written, if any, including any commitment letters or correspondence relating to
the Credit Documents, the Lender Hedging Agreements, the agreements pertaining
to Cash Management Products or the transactions contemplated herein and
therein.

 

24.                                 Survival.  All representations and warranties of the
Obligors hereunder shall survive the execution and delivery of this Security
Agreement, the other Credit Documents and the Lender Hedging Agreements, the
delivery of the Notes and the making of the Loans and the issuance of the
Letters of Credit under the Credit Agreement.

 

25.                                 Marshalling.  Neither the Agent nor any Lender shall be
under any obligation to marshal any assets in favor of any Obligor or any other
Person or against or in payment of any or all of the Secured Obligations.

 

[remainder of page intentionally left blank]

 

22

 

Each
of the parties hereto has caused a counterpart of this Security Agreement to be
duly executed and delivered as of the date first above written.

 

	
  OBLIGORS:

  	
  TRANSMONTAIGNE
  INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  PRODUCT SERVICES INC.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COASTAL
  FUELS MARKETING, INC.

  
	
   

  	
  a Florida
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COASTAL
  TUG AND BARGE, INC.

  
	
   

  	
  a Florida
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  TRANSPORT INC.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  SECURITY
  AGREEMENT

  
						

 

 

	
   

  	
  TRANSMONTAIGNE
  SERVICES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

2

 

Accepted
and agreed to as of the date first above written.

 

	
   

  	
   

  	
  WACHOVIA  

  	
   

  
	
   

  	
   

  	
  BANK,
  NATIONAL ASSOCIATION,

  	
   

  
	
   

  	
   

  	
  as Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECURITY
  AGREEMENT

  
										

 

 

SCHEDULE 4(a)(i)

 

CHIEF EXECUTIVE OFFICE/PRINCIPAL PLACE OF
BUSINESS/

EXACT LEGAL NAME/STATE OF FORMATION

 

	
  Exact Legal
  Name

  	
   

  	
  State of Formation

  	
   

  	
  Chief Executive Office and Chief Place of
  Business

  	
   

  
	
  TransMontaigne
  Inc.

  	
   

  	
  Delaware

  	
   

  	
  1670 Broadway, Suite 3100,
  Denver, Colorado 80202

  	
   

  
	
  TransMontaigne
  Product Services Inc.

  	
   

  	
  Delaware

  	
   

  	
  1670 Broadway, Suite 3100,
  Denver, Colorado 80202

  	
   

  
	
  TransMontaigne
  Transport Inc.

  	
   

  	
  Delaware

  	
   

  	
  1670 Broadway, Suite 3100,
  Denver, Colorado 80202

  	
   

  
	
  Coastal Fuels
  Marketing, Inc.

  	
   

  	
  Florida

  	
   

  	
  1670 Broadway, Suite 3100,
  Denver, Colorado 80202

  	
   

  
	
  Coastal Tug and
  Barge, Inc.

  	
   

  	
  Florida

  	
   

  	
  1670 Broadway, Suite 3100,
  Denver, Colorado 80202

  	
   

  
	
  TransMontaigne
  Services Inc.

  	
   

  	
  Delaware

  	
   

  	
  1670 Broadway, Suite 3100,
  Denver, Colorado 80202

  	
   

  

 

 

SCHEDULE 5(f)(i)

 

NOTICE OF GRANT OF SECURITY INTEREST

IN COPYRIGHTS

 

United States Copyright
Office

 

Gentlemen:

 

Please
be advised that pursuant to the Amended and Restated Security Agreement dated
as of May 27, 2005 (as the same may be amended, modified, extended or
restated from time to time, the “Security Agreement”) by and among the
Obligors party thereto (each an “Obligor” and collectively, the “Obligors”)
and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”) for the
financial institutions referenced therein (the “Lenders”), the
undersigned Obligor has granted a continuing security interest in and
continuing lien upon, the copyrights and copyright applications shown below to
the Agent for the benefit of the Agent and the Lenders:

 

	
   

  	
   

  	
  COPYRIGHTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copyright No.

  	
   

  	
  Description
  of Copyright

  	
   

  	
  Date of

  Copyright

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Copyright Applications

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Copyright

  Applications No.

  	
   

  	
  Description of Copyright

  Applied For

  	
   

  	
  Date of Copyright

  Applications

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

The
Obligors and the Agent, on behalf of the Lenders, hereby acknowledge and agree
that the security interest in the foregoing copyrights and copyright applications
(i) may only be terminated in accordance with the terms of the Security
Agreement and (ii) is not to be construed as an assignment of any
copyright or copyright application.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Obligor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

Acknowledged and
Accepted:

 

	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION,

  	
   

  
	
  as Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

2

 

SCHEDULE 5(f)(ii)

 

NOTICE OF GRANT OF SECURITY INTEREST

IN PATENTS

 

United States Patent and
Trademark Office

 

Gentlemen:

 

Please
be advised that pursuant to the Amended and Restated Security Agreement dated
as of May 27, 2005 (as the same may be amended, modified, extended or
restated from time to time, the “Security Agreement”) by and among the
Obligors party thereto (each an “Obligor” and collectively, the “Obligors”)
and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”) for the
financial institutions referenced therein (the “Lenders”), the
undersigned Obligor has granted a continuing security interest in and
continuing lien upon, the patents and patent applications shown below to the
Agent for the benefit of the Agent and the Lenders:

 

	
   

  	
   

  	
  PATENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Patent No.

  	
   

  	
  Description of Patent

  Item

  	
   

  	
  Date of

  Patent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Patent Applications

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Patent

  Applications No.

  	
   

  	
  Description of Patent

  Applied For

  	
   

  	
  Date of Patent

  Applications

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

The
Obligors and the Agent, on behalf of the Lenders, hereby acknowledge and agree
that the security interest in the foregoing patents and patent applications (i) may
only be terminated in accordance with the terms of the Security Agreement and (ii) is
not to be construed as an assignment of any patent or patent application.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Obligor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

Acknowledged and
Accepted:

 

	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION,

  	
   

  
	
  as Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

2

 

SCHEDULE 5(f)(iii)

 

NOTICE OF GRANT OF SECURITY INTEREST

IN TRADEMARKS

 

United States Patent and
Trademark Office

 

Gentlemen:

 

Please
be advised that pursuant to the Amended and Restated Security Agreement dated
as of May 27, 2005 (as the same may be amended, modified, extended or
restated from time to time, the “Security Agreement”) by and among the
Obligors party thereto (each an “Obligor” and collectively, the “Obligors”)
and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”) for the
financial institutions referenced therein (the “Lenders”), the
undersigned Obligor has granted a continuing security interest in and
continuing lien upon, the trademarks and trademark applications shown below to
the Agent for the benefit of the Agent and the Lenders:

 

	
   

  	
   

  	
  TRADEMARKS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trademark No.

  	
   

  	
  Description of Trademark

  Item

  	
   

  	
  Date of

  Trademark

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Trademark Applications

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trademark

  Applications No.

  	
   

  	
  Description of Trademark

  Applied For

  	
   

  	
  Date of Trademark

  Applications

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

The Obligors and the Agent, on behalf of the Lenders,
hereby acknowledge and agree that the security interest in the foregoing
trademarks and trademark applications (i) may only be terminated in
accordance with the terms of the Security Agreement and (ii) is not to be
construed as an assignment of any trademark or trademark application.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Obligor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and
  Accepted:

  	
   

  
	
   

  	
   

  
	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION,

  	
   

  
	
  as Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
											

 

2

 

EXHIBIT F-1

 

[FORM OF] REVOLVING NOTE

 

	
  $

  	
   

  	
   

  	
   

  	
  September 13, 2004

  

 

FOR VALUE RECEIVED, the
undersigned (the “Borrower” ), promises to pay to the order of [Payee
Lender] (the “Lender”) at

c/o WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent for the Lender, One Wachovia
Center, 301 South College Street, Charlotte, North Carolina 28288 in lawful
money of the United States of America and in immediately available funds, the
principal amount of                       Million
Dollars ($                      ),
or such lesser amount as may then constitute the unpaid aggregate principal
amount of all Revolving Loans made by the Lender to the Borrower pursuant to
the Credit Agreement (as defined below), at the times set forth in the Credit
Agreement, but no later than the Maturity Date.

 

The Borrower further
agrees to pay interest at said office, in like money, on the unpaid principal
amount owing hereunder from time to time outstanding from the date of disbursement
on the dates and at the rates specified in Article IV of the Credit
Agreement.

 

If any payment on this
promissory note becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day, and
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension.

 

This promissory note is
one of the Revolving Notes referred to in the Senior Secured Working Capital
Credit Facility, dated as of September 13, 2004 (together with all
modifications, renewals, extensions, supplements and replacements from time to
time, the “Credit Agreement”), among the Borrower, the Lender, certain
other financial institutions parties thereto, JPMorgan Chase Bank and UBS AG,
Stamford Branch, as Syndication Agents, Société Générale, New York Branch and
Wells Fargo Foothill, LLC, as the Documentation Agents, and Wachovia Bank,
National Association, as agent (“Agent”), and is subject to, and
entitled to, all provisions and benefits thereof and is subject to optional and
mandatory prepayment in whole or in part as provided therein.  Capitalized terms used herein without
definition shall have the meanings given to such terms in the Credit
Agreement.  The Credit Agreement, among
other things, provides for the making of Revolving Loans by the Lender to the
Borrower from time to time in an aggregate amount not to exceed at any time
outstanding the U.S. dollar amount first above mentioned.

 

Upon the occurrence of
any one or more of the Events of Default specified in the Credit Agreement, the
Agent and the Lenders may exercise such rights and remedies described in Article XI
of the Credit Agreement.

 

This promissory note is
secured by the Security Documents and other collateral documents and
agreements.

 

The Borrower hereby
waives presentment, demand, protest and notice of any kind.  No failure to exercise, and no delay in
exercising any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights.

 

 

THE
VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS PROMISSORY NOTE SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CHOICE OF LAW PROVISIONS THEREOF, OTHER THAN SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

 

	
   

  	
  TRANSMONTAIGNE
  INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT F-2

 

[FORM OF] SWING LOAN NOTE

 

	
  $40,000,000

  	
   

  	
  September 13, 2004

  

 

FOR VALUE RECEIVED, the
undersigned (the “Borrower”) promises to pay to the order of WACHOVIA
BANK, NATIONAL ASSOCIATION (the “Lender”), One Wachovia Center, 301
South College Street, Charlotte, North Carolina 28288 in lawful money of the
United States of America and in immediately available funds, the principal
amount of Forty Million Dollars ($40,000,000), or such lesser amount as may
then constitute the unpaid aggregate principal amount of all Swing Loans made
by the Lender to the Borrower pursuant to the Credit Agreement (as defined below),
at the times set forth in the Credit Agreement, but no later than the Maturity
Date.

 

The Borrower further
agrees to pay interest at said office, in like money, on the unpaid principal
amount owing hereunder from time to time outstanding from the date of
disbursement on the dates and at the rates specified in Article IV of the
Credit Agreement.

 

This promissory note is
the Swing Note referred to in the Senior Secured Working Capital Credit
Facility, dated as of September 13, 2004 (together with all modifications,
renewals, extensions, supplements and replacements from time to time, the “Credit
Agreement”), among the Borrower, the Lender, certain other financial
institutions parties thereto, JPMorgan Chase Bank and UBS AG, Stamford Branch,
as Syndication Agents, Société Générale, New York Branch and Wells Fargo
Foothill, LLC, as the Documentation Agents, and Wachovia Bank, National
Association, as agent (“Agent”), and is subject to, and entitled to, all
provisions and benefits thereof and is subject to optional and mandatory
prepayment in whole or in part as provided therein.  Capitalized terms used herein without
definition shall have the meanings given to such terms in the Credit Agreement.

 

Upon the occurrence of
any one or more of the Events of Default specified in the Credit Agreement, the
Agent and the Lenders may exercise such rights and remedies described in Article XI
of the Credit Agreement.

 

This promissory note is
secured by the Security Documents and other collateral documents and
agreements.

 

The Borrower hereby
waives presentment, demand, protest and notice of any kind.  No failure to exercise, and no delay in
exercising any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights.

 

THE
VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS PROMISSORY NOTE SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CHOICE OF LAW PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

 

 

	
   

  	
  TRANSMONTAIGNE
  INC.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT G

 

[FORM OF] NOTICE OF
BORROWING AND PAYMENT

 

	
  , 200   

  

 

WACHOVIA BANK, NATIONAL
ASSOCIATION

  as Agent for
the Lenders

191 Peachtree Street,
N.E.

Atlanta, GA 30303

Attention:  Betty Eberhardt

Telephone: 404-332-6452

Facsimile: 404-332-6977

 

Ladies and Gentlemen:

 

The
undersigned, TRANSMONTAIGNE INC., a Delaware corporation (the “Borrower”) party to the Amended
and Restated Senior Secured Working Capital Credit Facility, dated as of May 27,
2005, among the Borrower, certain financial institutions parties thereto,
JPMorgan Chase Bank, N.A. and UBS AG, Stamford Branch, as Syndication Agents,
Société Générale, New York Branch and Wells Fargo Foothill, LLC, as the
Documentation Agents, and WACHOVIA BANK, NATIONAL ASSOCIATION, as agent
(together with all modifications, renewals, extensions, supplements and
replacements from time to time, the “Credit Agreement”; capitalized
terms used herein shall have the meanings given such terms in the Credit
Agreement), hereby gives you notice, irrevocably, pursuant to Section 2.1(d) of
the Credit Agreement that the Borrower hereby requests borrowings under the
Credit Agreement, and in that connection sets forth below the information
relating to such borrowings (the “Proposed Borrowings”) as required by Sections
2.1(d) of the Credit Agreement:

 

	
  Borrower

  	
   

  	
  Date

  	
   

  	
  Amount

  	
   

  	
  Swing

  Loan or

  Revolving

  Loan

  	
   

  	
  Base Rate

  or

  Eurodollar

  Rate

  	
   

  	
  Interest

  Period

  
	
  Company

  	
   

  	
   

  	
   

  	
  $

  	
  101,616,559.03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N/A

  
												

 

[The
Borrower hereby requests that collected balances in the Cash Concentration
Account in the amount of $                          
be applied to payment of principal of the [Swing Loans] [Revolving Loans] to
[Base Rate Loans outstanding] or [Eurodollar Loans outstanding.] [BORROWER TO INCLUDE, WHERE A SWING LOAN OR REVOLVING LOAN PAYMENT IS
DESIRED.]

 

The
Borrower hereby certifies that the following statements are true on the date
hereof, and will be true on the date of the Proposed Borrowing:

 

(A)          the representations and warranties
contained in the Credit Agreement are true and correct in all material respects
before and after giving effect to the Proposed Borrowings and to the

 

 

application of the proceeds therefrom, as though made on and as of such
date, except to the extent that such representations and warranties expressly
relate solely to an earlier date (in which case such representations and
warranties shall have been accurate and complete in all material respects on
and as of such earlier date);

 

(B)           no event has occurred and is
continuing, or would result from such Proposed Borrowings or from the
application of the proceeds thereof, which constitutes a Default or an Event of
Default, including, without limitation, the creation or incurrence of any “Lien”
or “Indebtedness” (as those terms are defined in the Senior Subordinated Notes
Indenture) that is not permitted under the Senior Subordinated Notes Indenture;

 

(C)           no Material Adverse Change, or
development reasonably likely to have a Material Adverse Effect has occurred
and is continuing;

 

(D)          all of the other conditions to the
Proposed Borrowings set forth in Section 5.2 of the Credit Agreement have
been fulfilled; and

 

(E)           the Proposed Borrowings satisfy all
limitations set forth in the Credit Agreement (including, without limitation,
availability under the Borrowing Base).

 

If
notice of this Proposed Borrowing has been given previously by telephone, then
this notice should be considered a written confirmation of such telephone
notice as required by Section 2.1(d) of the Credit Agreement.

 

	
   

  	
  TRANSMONTAIGNE
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

EXHIBIT H

 

DEPOSIT
ACCOUNT CONTROL AGREEMENT

(No  Notification)

 

This DEPOSIT ACCOUNT
CONTROL AGREEMENT (this “Agreement”) is made and entered into as of this
       day of
           200  ,
by and among                                ,
a                          
as depositary bank (the “Bank”),                        ,
a                                  
(the “Company”), and WACHOVIA BANK, NATIONAL ASSOCIATION, in its
capacity as agent for itself and other lenders (the “Agent”).

 

1.4  Statement of Facts

 

The Bank acknowledges that, as of the date hereof, it
maintains in the name of the Company the deposit account(s) identified on Appendix 1 attached hereto and made a part hereof (each an Account”
and, collectively, the “Accounts”). 
One or more of the Accounts may be served by one or more lockboxes
operated by the Bank, which lockboxes (if any) also are listed on Appendix 1 (each a “Lockbox” and, collectively, the “Lockboxes”).  Both the Accounts and the Lockboxes are
governed by the terms and conditions of the Company’s signature card and the
commercial deposit account agreement published by the Bank from time to time,
and may also be governed by a wholesale lockbox service description between the
Bank and the Company (collectively, the ‘“Deposit Agreement”).

 

The Company hereby informs the Bank that, pursuant to
a Senior Secured Working Capital Credit Facility by and among [the Company] [TransMontaigne Inc.], the lenders party
thereto and the Agent, [and a Guaranty Agreement
executed by the Company,] the Company has granted to the Agent a
security interest in, among other things, the following (collectively, the “Account
Collateral”): (a) the Accounts, (b) the Lockboxes and (c) the
Items Collateral.  The term “Items
Collateral” as used herein shall mean, collectively, all checks, drafts,
instruments,

 

 

cash and other items at any time received in any
Lockbox or for deposit in any Account (subject to specific Lockbox instructions
in effect for processing items received in the Lockboxes), and all wire
transfers of funds, automated clearing house (“ACH”) entries, credits
from a merchant card transaction and other electronic funds transfers or other
funds deposited in, credited to, or held for deposit in or credit to, any
Account.

 

The parties desire to
enter into this Agreement in order to set forth their relative rights and
duties with respect to the Account Collateral. In consideration of the mutual
covenants herein as well as other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             CONTROL OF THE
ACCOUNTS.

 

(a)           The Statement of Facts is true and
correct and incorporated herein by reference. 
Each party to this Agreement hereby confirms that (i) each Account
is a “deposit account”, (ii) this Agreement shall constitute an “authenticated
record”, and (iii) the arrangements established under this Agreement shall
constitute “control” of each Account, as each of those terms is defined in Article 9
of the Uniform Commercial Code as adopted in the State in which the respective
Account identified in Appendix 1 is
located (hereinafter referred to as the “Applicable UCC”).

 

(b)           The Company represents and warrants
to the Agent that Appendix 1 contains
a complete and accurate list of Accounts and Lockboxes maintained by the
Company with the Bank and subject to this Agreement.  The Company hereby covenants for the benefit
of the Agent that the Company shall not open or maintain any deposit account
with the Bank other than the Accounts listed on Appendix 1.  Nothing in this Agreement shall be deemed to
impose upon the Bank any duty to monitor or otherwise assure the Company’s
compliance with this Section 1(b).

 

(c)           The
Company hereby authorizes and directs the Bank to comply, and the Bank agrees
to comply, with instructions given by the Agent in accordance with this
Agreement directing the disposition of funds from time to time in any Account
or as to any other matters relating to any Account or any of the other Account
Collateral without further consent by the Company.  The Bank shall be entitled to rely and act
upon any instructions received by the Bank from the Agent. The Agent’s right to
give instructions to the Bank regarding any Account Collateral shall include
the right to give “stop payment orders” to the Bank for any items that may be
presented to the Bank against any

 

2

 

Account, and the Company also authorizes the Bank to
follow such instructions by the Agent even if it results in the dishonor of
items presented against any Account.

 

(d)           Each of the Company and the Agent hereby
authorizes and directs the Bank to act solely upon the instructions of the
Agent concerning the Lockboxes and the Accounts including, but not limited to,
instructions to: (i) direct disposition of funds in the Accounts
(including, but not limited, dispositions to or for the benefit of the Agent
and/or the Bank), (ii) withdraw any amount from the Account(s), or (iii) draw
upon or otherwise exercise any authority or powers with respect to the
Lockboxes, the Accounts and all other Account Collateral until the Bank shall
have received written instructions from the Agent in accordance with the
provisions of Section 7 of this Agreement to the contrary.  Effective as of the date of this Agreement:
all Items Collateral received by the Bank in a Lockbox (subject to specific
Lockbox instructions for processing the contents of mail received in the
Lockbox) shall be deposited to the Account listed opposite such Lockbox on Appendix 1; all other Items Collateral received directly by
the Bank for credit to an Account shall be credited to such Account, and; all
available funds in an Account either shall (i) automatically and without
further direction on each banking day be remitted, at the Company’s expense,
solely to the account of the Agent set forth on Appendix 2
attached hereto and made a part hereof, or (ii) be subject to withdrawal
or transfer based on written instructions given by the Agent to the Bank in
accordance with this Section 7 of this Agreement.  Unless otherwise instructed by the Agent in
writing, none of the officers, agents or other representatives of the Company
or any of its affiliates shall at any time during the term of this Agreement
have any authority to direct the disposition of funds in any Account, or to
draw upon or otherwise exercise any authority or power with respect to the
Lockbox, any Account or any Account Collateral.

 

(e)           All
defenses of the Bank under the Deposit Agreement, Federal Reserve Regulations
and Operating Circulars, clearing house rules and applicable law
(including, without limitation, the Applicable UCC) as to the collection and
payment of items shall also be applicable to and enforceable against the
Agent.  Each of the Company and the Agent
hereby authorizes and instructs the Bank to supply the Company’s or the Agent’s
endorsement, as appropriate, to any Items Collateral that the Bank shall
receive and deposit for collection to any Account.

 

2.             Statements and Other Information.  The
Bank will send to the Agent (in a manner consistent with the Bank’s standard
practices) at the Agent’s address specified below, copies of all
correspondence, notices, account statements and other information (but not
canceled checks) which the Bank shall be required to send to the Company under
the Deposit Agreement.  The Bank also
agrees to provide to each of the Company and the Agent (as a service under this
Agreement and/or the Deposit Agreement) copies of account statements and other
deposit account information, including account balances, by telephone and by
computer communication, to the extent practicable and as shall have been
requested by the Company or by the Agent. 
The Company shall be deemed at all times to have consented to the Bank’s
release of such deposit account information to the Agent.  The Bank’s liability for failure to comply with
this Section 2 shall not exceed the cost of providing such information.

 

3

 

3.             Setoff;
Returned Items and Charges.

 

(a)           The Company and the Bank have not
entered into, and will not enter into during the term of this Agreement, any
agreement with any person other than the Agent by which the Bank will be
obligated to comply with instructions from such other person (other than the
Company) as to the disposition of funds in an Account or of Items Collateral received
in a Lockbox.

 

(b)           The Bank will not exercise any
security interest (except for the security interest provided in Section 4–210,
“Security Interest of Collecting Bank in Items, Accompanying Documents and
Proceeds”, of the Applicable UCC), lien, right of setoff, deduction, recoupment
or banker’s lien or any other interest in or against any Account or any other
Account Collateral, and the Bank hereby subordinates to the Agent any such
security interest (except for such security interest provided in Section 4-210,
“Security Interest of Collecting Bank in Items, Accompanying Documents and
Proceeds”, of such Applicable UCC), lien or right which it may have against any
Account or any of the other Account Collateral. 
Notwithstanding the provisions of the preceding sentence, the Agent and
the Company agree that the Bank at any time may, and is expressly permitted by
this Agreement to, set off and charge against any Account (regardless of any
agreement of the Company to compensate the Bank by means of balances in such
Account) any or all of the following as permitted under the Deposit Agreement
(collectively, the “Permitted Debits”): (i) the face amount of each
Returned Item (hereinafter defined), (ii) all usual and customary service
charges, (iii) account maintenance fees, (iv) transfer fees, (v) out-of-pocket
fees and expenses (including attorneys’ reasonable fees) incurred by the Bank,
including those incurred in connection with the negotiation, administration or
enforcement of this Agreement, (vi) adjustments or corrections of posting
or encoding errors, and (vii) any other items normally chargeable by the
Bank to or against a deposit account or customer, whether any of the Permitted
Debits shall have been incurred before or after the date of this Agreement.  As used in this Agreement, “Returned Item”
shall mean any (i) Items Collateral deposited into or credited to an
Account either before or after the date of this Agreement and returned unpaid
or otherwise uncollected or subject to an adjustment entry, whether for
insufficient funds or for any other reason, and without regard to the
timeliness of such return or adjustment or the occurrence or timeliness of any
other party’s notice of nonpayment or adjustment; (ii) Items Collateral
subject to a claim against the Bank for breach of transfer, presentment,
encoding, retention or other warranty under Federal Reserve Regulations or
Operating Circulars, clearing house rules or applicable law (including,
without limitation, Articles 3, 4 and 4A of the Applicable UCC); and (iii) credit
to an Account from a merchant card transaction against which a contractual
demand for chargeback has been made.

 

(c)           If (i) there
were insufficient funds in the Account(s) such that the Bank shall be unable to
set off and charge any Permitted Debits against such Account(s), or (ii) the
Bank in good faith shall believe that any legal process or applicable law
prohibits such setoffs and charges against any Account, or (iii) the
Account(s) shall have been closed, then (A) the Bank may charge such
Permitted Debits to and set off against any other Account, and/or (B) the
Bank may demand that the Agent pay, and the Agent shall pay,

 

4

 

to the Bank within five (5) business days of
written notice of demand by the Bank the full amount of such Permitted Debits;
provided, however, as to those Permitted Debits that are service charges, fees
or expenses, or adjustments or corrections, the Agent shall only be required to
pay to the Bank those services charges, fees and expenses attributable to any
Account that shall have been incurred, or such adjustments or corrections of
posting or encoding errors that shall have occurred, in connection with any
Account on or after the date of this Agreement and on or before the date of
termination of this Agreement.

 

(d)           The
Company agrees to reimburse the Agent for any moneys that the Agent shall have
paid to the Bank for any Permitted Debits under this Section 3 or for any
costs, expenses and attorneys’ reasonable fees incurred under Section 6
below, and the Agent may, at its option, charge any loan account of the Company
any such amounts.  Nothing in this
paragraph shall limit any liabilities or obligations of the Company and/or the
Agent to the Bank under this Agreement.

 

4.             Exculpation of Bank.

 

(a)           At all times the Bank shall be
entitled to rely conclusively upon any communication it receives from the Agent
in connection with this Agreement or which the Bank believes in good faith to
be a communication received by it from the Agent in connection with this
Agreement, and the Bank shall have no obligation to investigate or verify the
authenticity or correctness of any such communication.  The Bank shall have no liability to the Company
or the Agent for honoring or following any instruction the Bank shall receive
from (or in good faith shall believe to be from) the Agent in accordance with
this Agreement.  The Bank shall be fully
discharged from liability with respect to any funds on deposit in any Account
or other Account Collateral to the extent that the Bank shall honor and follow
instructions it shall receive from (or in good faith shall believe to be from)
the Agent, and the Bank shall transfer any of such funds to, or on the
instructions of, the Agent.

 

(b)           The Bank shall only be responsible
for the loss that a court having jurisdiction over the Account(s) shall have
determined had been incurred by the Company or the Agent and had been caused by
the Bank’s breach of this Agreement or gross negligence or willful misconduct.  The Bank shall have no liability to any party
for failure of, or delay in, its performance under this Agreement as a result
of any act of God, war or terrorism, fire, other catastrophe or force
majeure, electrical or computer or telecommunications failure, any event
beyond the control of the Depository Bank, or fraud committed by any third
party.  Nothing in this Agreement shall
create any agency, fiduciary, joint venture or partnership relationship between
the Bank and the Company or the Agent. 
Except as shall be specifically required under this Agreement or the
Deposit Agreement or applicable law, the Bank shall have no duty whatsoever to
the Agent or the Company in connection with the subject matter of this
Agreement.

 

5

 

5.             Indemnification.

 

(a)           The Company hereby indemnifies the
Bank and holds it harmless against, and shall reimburse the Bank for, any loss,
damage or expense (including attorneys’ reasonable fees and expenses, court
costs and other expenses) including, but not limited to, (i) unpaid
charges, fees, and Returned Items for which the Company and/or the Agent
originally received credit or remittance by the Bank, and (ii) any loss,
damage or expense the Bank shall incur as a result of (A) entering into or
acting pursuant to this Agreement, (B) honoring and following any
instruction the Bank may receive from (or in good faith shall believe to be
from) the Agent under this Agreement, or (C) to the extent required by
this Agreement, not honoring or following any instructions the Bank shall
receive from (or in good faith shall believe to be from) the Company in
accordance with this Agreement.  The
Company shall not be responsible for any loss, damage or expense that a court
having jurisdiction shall have determined had been caused by the Bank’s breach
of this Agreement or gross negligence or willful misconduct.

 

(b)           Without limiting in any way the Agent’s
obligation to pay or reimburse the Bank as otherwise specified in this
Agreement, the Agent hereby indemnifies the Bank and holds it harmless against
any loss, damage or expense (including attorneys’ reasonable fees and expenses,
court costs and other expenses) which loss, damage or expense the Bank shall
incur as a result of honoring or following any instruction it shall receive
from (or in good faith shall believe to be from) the Agent under this Agreement
or, to the extent required by this Agreement, not honoring or following any
instruction the Bank shall receive from (or in good faith shall believe to be
from) the Company in accordance with this Agreement, except for any loss,
damage, or expense that a court having jurisdiction shall have determined had
been caused by the Bank’s breach of this Agreement or gross negligence or
willful misconduct.

 

(c)           In no event shall any party hereto be
liable to any other party under this Agreement for lost profits or special,
indirect, exemplary, consequential or punitive damages, even if such party
shall have been advised of the possibility of such damages.

 

6.             Third Party Claims; Insolvency of Company.

 

(a)           In the event any third party shall
assert an adverse claim by legal process against any Account or any sums on
deposit therein, any Lockbox or other Account Collateral, whether such claim
shall arise by tax lien, execution of judgment, statutory attachment,
garnishment, levy, claim of a trustee in bankruptcy or debtor-in-possession, or
other judicial or regulatory order or process (each, a “Claim”), the
Bank may, in addition to other remedies it may possess under the Deposit
Agreement, this Agreement or at law or in equity: (i) suspend
disbursements from such Account without any liability until the Bank shall have
received an appropriate court order or other assurances acceptable to the Bank
in its sole discretion establishing that funds may continue to be disbursed
according to instructions then applicable to such Account, and/or (ii) interplead
all such funds in such Account into the registry of the appropriate court
located in the State in which such Account is located as identified in Appendix 1.  The
Company shall pay promptly all of the Bank’s costs, expenses and attorneys’
reasonable fees incurred in connection with such Claim.  If the Company shall fail to promptly remit
such amounts to the Bank, the

 

6

 

Bank may demand that the
Agent pay, and the Agent shall pay, such amounts to the Bank within five (5) business
days of Agent’s receipt of the Bank’s written notice of demand therefor.

 

(b)           If a bankruptcy or insolvency
proceeding shall have been commenced by or against the Company, the Bank shall
be entitled, without any liability, to refuse to permit deposits to, or
withdrawals and/or transfers from, the Accounts until the Bank shall have
received an appropriate court order or other assurances acceptable to the Bank
in its sole discretion establishing that continued deposits to, or withdrawals
and/or transfers from, the Accounts are authorized and shall not violate any
law, regulation, or order of any court.

 

7.             Notice and Communications.  All
communications given by any party to another as required or provided under this
Agreement shall be in writing, issued by or directed to the respective
designated officer (the “Designated Officer”) set forth below, and
delivered to each recipient party at its respective address (or at such other
address and to or by such other Designated Officer as such party may designate
in writing to the other parties in accordance with this Section 7) either
by U.S. Mail, receipted delivery service or via telecopier facsimile
transmission.  Any communication
hereunder to the Bank which is an instruction made by (or in good faith
believed by the Bank to be by) the Agent shall be deemed to have been received
by the Bank when actually received by its Designated Officer, and shall be
deemed to have been implemented by the Bank by the close of the Bank’s business
on the banking day that shall be two (2) banking days (exclusive of the
date on which such instruction was actually received) after receipt by the Bank’s
Designated Officer.

 

	
  Address for Depository
  Bank:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn.:                             ,
  Designated Officer

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
   

  
	
  Address for Agent:

  	
   

  	
  Wachovia Bank, National
  Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn.:                             ,
  Designated Officer

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
   

  
	
  Address for Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn.:                             ,
  Designated Officer

  
	
   

  	
   

  	
  Fax:

  

 

8.             Termination.

 

(a)           This Agreement may be terminated by
the Agent at any time upon receipt by the Bank of the Agent’s written notice of
termination.  This Agreement may be
terminated by the Company only with the express prior written consent of the
Agent and, in that case, the Agent and the Company shall jointly notify the
Bank of such termination.  This Agreement
may be terminated

 

7

 

by the Company at any
time after the Agent ceases to have a security interest in all of the Account
Collateral, provided no such termination by the Company shall be effective
unless the Bank shall have received written notice from the Agent confirming
that such security interest no longer exists.

 

(b)           This Agreement may be terminated by
the Bank at any time on not less than thirty (30) days’ prior written notice to
each of the Company and the Agent.

 

(c)           The
Bank’s rights to demand and receive reimbursement from the Company under Sections
3 and 6 of this Agreement and the Company’s indemnification of the Bank
under Section 5 of this Agreement shall survive termination of this
Agreement.  In addition, the Bank’s
rights to demand reimbursement from the Agent under Section 3 of
this Agreement shall survive termination of this Agreement for a period of
sixty (60) days after the date of termination of this Agreement.  The Bank’s right to demand reimbursement from
the Agent under Section 6 of this Agreement shall survive
termination of this Agreement for a period of one hundred eighty (180) days
after the date of termination of this Agreement.  The Bank’s right to demand the Agent’s
indemnification of the Bank under Section 5 of this Agreement shall
survive termination of this Agreement for a period of one hundred eighty (180)
days after the date of termination of this Agreement.

 

(d)           Upon termination of this Agreement,
all funds remaining in the Account(s) and all other Account Collateral received
by the Bank shall be forwarded by the Bank directly to the Agent or to the
Agent’s account specified in Appendix 2, if
applicable, unless the Bank shall have received written instruction from the
Agent prior to termination of this Agreement directing the Bank to send such
funds and other Account Collateral to another depository institution approved
in writing by the Agent and the Company.

 

9.             Miscellaneous.

 

(a)           The
Company shall not assign or transfer any of its rights or obligations under
this Agreement without the prior written consent of the Bank and the
Agent.  The Agent shall not assign or
transfer any of its rights or obligations under this Agreement without the prior
written consent of the Bank.  The Bank
shall not assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of the Agent and the Company,
except that the Bank may transfer its rights and obligations under this Agreement
to any direct or indirect

 

8

 

depository subsidiary of [name of Bank’s holding
company] or, in the event of a merger or acquisition of the Bank, to the
Bank’s successor depositary institution.

 

(b)           This Agreement shall be governed by
the laws of the State in which the Account(s) is/are located as identified in

Appendix 1 (without giving effect to
its conflicts of law rules), which State shall also be the jurisdiction of the
Bank within the meaning of Section 9-304 of the Applicable UCC.  The Bank will not amend the Deposit Agreement
to the effect that secured transactions in connection with any Account(s) shall
be governed by the law of a jurisdiction other than the State in which such
Account is located as identified in Appendix 1.

 

(c)           This Agreement may be executed in any
number of counterparts, each of which shall be an original and all of which
taken together shall constitute one and the same Agreement. Delivery of an
executed signature page counterpart to this Agreement via telecopier
facsimile transmission shall be effective as if it were delivery of a manually
delivered, original, executed counterpart thereof.  This Agreement shall only be modified or
amended by written agreement of all of the parties hereto evidencing such modification
or amendment.

 

(d)           To the extent that any conflict may
exist between the provisions of any other agreement between the Company and the
Bank and this Agreement, then this Agreement shall control.  It is understood and agreed that nothing in
this Agreement shall give the Agent any benefit of legal or equitable right,
remedy or claim under the Deposit Agreement.

 

10.          Waiver of Jury Trial.  EXCEPT
AS MAY BE PROHIBITED BY APPLICABLE LAW, EACH OF THE AGENT, THE BANK AND
THE COMPANY IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING (INCLUDING ANY COUNTERCLAIM) OF ANY TYPE IN WHICH THE AGENT, THE
BANK OR THE COMPANY SHALL BE A PARTY AS TO ALL MATTERS ARISING DIRECTLY OR
INDIRECTLY OUT OF THIS AGREEMENT.

 

IN WITNESS WHEREOF,
each of the parties by its respective duly authorized officer has executed and
delivered this Agreement as of the day and year written above.

 

	
  BANK:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

9

 

	
  AGENT:

  	
   

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

10

 

APPENDIX
1

 

ACCOUNTS
OF THE COMPANY

 

	
  Account Number

  	
   

  	
  Related Lockbox

  Number, if any,

  	
   

  	
  Account Name

  	
   

  	
  State Where

  Account is

  Located

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

APPENDIX
2

 

11

 

AGENT’S DESIGNATED ACCOUNT

 

12

 

EXHIBIT I

 

[FORM OF] NOTICE OF
EXTENSION/CONVERSION

 

                         ,
200     

 

WACHOVIA BANK, NATIONAL
ASSOCIATION,

  as Agent for the Lenders

201 South College Street

Mail Code: NC 0680, CP-8

Charlotte, North Carolina
28288

Attention:  Syndication Agency Services

 

Ladies and Gentlemen:

 

The
undersigned, TRANSMONTAIGNE INC., a Delaware corporation(the “Borrower”) party to the Amended and
Restated Senior Secured Working Capital Credit Facility, dated as of May 27,
2005, among the Borrower, certain financial institutions parties thereto,
JPMorgan Chase Bank, N.A. and UBS AG, Stamford Branch, as Syndication Agents,
Société Générale, New York Branch and Wells Fargo Foothill, LLC, as the
Documentation Agents, and WACHOVIA BANK, NATIONAL ASSOCIATION, as agent
(together with all modifications, renewals, extensions, supplements and
replacements from time to time, the “Credit Agreement”; capitalized
terms used herein shall have the meanings given such terms in the Credit
Agreement) hereby gives you notice, irrevocably, pursuant to Section 2.9
of the Credit Agreement that the Borrower hereby requests extensions and/or
conversions under the Credit Agreement, and in that connection set forth below
the information relating to such extensions and/or conversions (the “Extensions/Conversions”)
as required by Sections 2.9 of the Credit Agreement:

 

	
  Borrower

  	
   

  	
  Date(1)

  	
   

  	
  Amount

  	
   

  	
  Swing

  Loan or

  Revolving

  Loan

  	
   

  	
  Base Rate

  or

  Eurodollar

  Rate

  	
   

  	
  Interest

  Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The
Borrower hereby certifies that the following statements are true on the date
hereof, and will be true on the date of the Extension/Conversion:

 

(A)                              the
representations and warranties contained in the Credit Agreement are true and
correct in all material respects before and after giving effect to the
Extensions/Conversions and to the application of the proceeds therefrom, as
though made on and as of such date, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties shall have been accurate and
complete in all material respects on and as of such earlier date);

 

(1)                                  Such
date shall be the last day of the Interest Period applicable to such Loan.

 

 

(B)                                no
event has occurred and is continuing, or would result from such
Extensions/Conversions or from the application of the proceeds thereof, which
constitutes a Default or an Event of Default;

 

(C)                                no
Material Adverse Change, or development reasonably likely to have a Material Adverse
Effect has occurred and is continuing;

 

(D)                               all
of the other conditions to the Extensions/Conversions set forth in Article II
of the Credit Agreement have been fulfilled; and

 

(E)                                 the
Extensions/Conversions satisfy all limitations set forth in the Credit
Agreement (including, without limitation, availability under the Borrowing
Base).

 

	
   

  	
  TRANSMONTAIGNE
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

2

 

EXHIBIT J

 

[FORM OF] COMPLIANCE CERTIFICATE

 

[Letterhead of TransMontaigne]

 

                        ,
200     

 

[SUBJECT
TO REVISION-REVISED EXHIBIT WITH COMPLIANCE CALCULATIONS WILL BE POSTED
SEPARATELY]

 

WACHOVIA BANK, NATIONAL
ASSOCIATION,

  as Agent for the Lenders

201 South College Street

Mail Code: NC 0680, CP-8

Charlotte, North Carolina
28288

Attention:  Syndication Agency Services

 

Ladies and Gentlemen:

 

I
hereby certify to you as follows:

 

(a)                                  I
am the duly elected [Title] of
TRANSMONTAIGNE, a Delaware corporation
(the “Borrower”) and am providing this Compliance Certificate pursuant
to Section 7.1(d) of the Amended and Restated Senior Secured Working
Capital Credit Facility, dated as of May 27, 2005 (together with all
modifications, renewals, extensions, supplements and replacements from time to
time, the “Credit Agreement”), among the Borrower, the financial
institutions parties thereto, JPMorgan Chase Bank, N.A. and UBS AG, Stamford
Branch, as Syndication Agents, Société Générale, New York Branch and Wells
Fargo Foothill, LLC, as the Documentation Agents, and you, as Agent.  Capitalized but undefined terms used in this
Certificate shall have the meanings assigned to them in the Credit Agreement.

 

(b)                                 I
have reviewed the terms of the Credit Agreement, and have made, or have caused
to be made under my supervision, a review in reasonable detail of the
transactions and the condition of the Borrower during the immediately preceding
fiscal quarter.

 

(c)                                  The
review described in paragraph (b) above did not disclose the existence during
or at the end of such period, and I have no knowledge of the existence as of
the date hereof, of any condition or event which constitutes a Default or an
Event of Default, except as hereinafter set forth.  Described in a separate attachment to this
Certificate are (i) detailed calculations demonstrating compliance by the
Borrower with the financial covenants contained in Article VIII of the Credit
Agreement and (ii) the exceptions, if any, to this paragraph (c) (listing, in
detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to such condition or event).

 

I
further certify that, to my knowledge, based on the review described in
paragraph (b) above, neither the Borrower nor any of the Subsidiaries at any
time during or at the end of such period, except as specifically described in
paragraph (k) below, did any of the following:

 

 

(d)                                 Changed
its respective corporate name, or transacted business under any trade name,
style, or fictitious name, other than those previously described to you and set
forth in the Credit Agreement.

 

(e)                                  Changed
the jurisdiction of its formation or the location of its chief executive
office, or disposed of any of its assets (other than as permitted under the
Credit Agreement).

 

(f)                                    Changed
its capital structure, except as permitted by the Credit Agreement.

 

(g)                                 Permitted
or suffered to exist any Liens or encumbrances on any of its properties,
whether real or personal, other than as permitted in the Credit Agreement.

 

(h)                                 Received
any notices of the type described in Section 7.5 of the Credit
Agreement.

 

(i)                                     Became
aware of, obtained knowledge of, or received notification of, any breach or
violation of any material covenant contained in any instrument or agreement in
respect of Subordinated Debt or any other indebtedness for money borrowed by
the Borrower or any of the Subsidiaries that would permit or result in the
acceleration of any Indebtedness in excess of $500,000 in the aggregate.

 

(j)                                     [List
exceptions, if any, to paragraphs (d) through (i) above].

 

2

 

The
foregoing certifications are made and delivered this          
day of                         ,
200    , solely in my capacity as the                           
of the Borrower.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

3

 

EXHIBIT K

 

[FORM OF] BORROWING BASE
CERTIFICATE

 

[SUBJECT TO REVISION-REVISED EXHIBIT WILL BE
POSTED SEPARATELY]

 

Exhibit K: Borrowing Base Certificate

 

TransMontaigne Inc.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Wachovia Bank, National Association

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  191 Peachtree Street,
  GA8056

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Atlanta, GA 30303

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Phone: (404) 332- 6452

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile: (404) 332-6977

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Betty Eberhardt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RE:

  	
   

  	
  Borrowing Base Certificate
  as of:

  	
   

  	
  [DATE]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Eligible Amount

  	
   

  	
  Advance

  Rate

  	
   

  	
  Amount Available

  	
   

  
	
   

  	
   

  	
  Borrowing Base

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cash and Cash Equivalents

  	
   

  	
  $

  	
  —

  	
   

  	
  100

  	
  %

  	
  $

  	
  —

  	
   

  	
   

  
	
   

  	
   

  	
  High Quality Oil Company Receivables

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Other Eligible Accounts Receivables

  	
   

  	
  0

  	
   

  	
  85

  	
  %

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Tank Bottoms and Line Fill Inventory

  	
   

  	
  0

  	
   

  	
  70

  	
  %

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Other Eligible Inventory

  	
   

  	
  0

  	
   

  	
  80

  	
  %

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Letters of Credit backing Paid LC Backed Inventory

  	
   

  	
  0

  	
   

  	
  100

  	
  %

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Positive Exchange Contract Balances

  	
   

  	
  0

  	
   

  	
  80

  	
  %

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Gross Borrowing Base

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Less: Reserves

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Net Borrowing Base (not to exceed $400,000,000, or if applicable, the
  Indenture borrowing base)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
  Does the Indenture
  borrowing base apply?

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less Balances Outstanding

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  If yes, the Indenture borrowing
  base amount:

  
	
   

  	
   

  	
  Revolver Loans Outstanding (Base and Euro dollars)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
   

  
	
   

  	
   

  	
  Swing Line Loans Outstanding

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Letter of Credit Exposure Outstanding

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
  Excess Availability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  	
   

  
															

 

	
  A.
  Eligible Cash and Cash Equivalents

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Cash and Cash Equivalents
  subject to a Deposit Control Agreement in favor of the Agent

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Rate of advance

  	
   

  	
   

  	
   

  	
  x 100%

  	
   

  	
   

  
	
   

  	
  3.

  	
  Cash and Cash Equivalents

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. High
  Quality Oil Company Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Accounts receivable (net of
  all offsets, counterclaims, unresolved disputes or contras) where the account
  debtor is (i) rated at least A- or A3 with a stable outlook or better, and
  (ii) has been a customer for at least six months.

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Rate of advance

  	
   

  	
   

  	
   

  	
  x 90%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  High Quality Oil Company
  Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C. Other
  Eligible Accounts Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Consolidated accounts
  receivable balance per the aging, gross.

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Plus: Uninvoiced accounts receivable arising from
  deliveries during the 30-day period ending on the last banking Day for which
  calculations are provided in this certificate, per the Released Not Invoiced
  (RNI) report for sales (without duplication of C1).

  	
   

  	
  +

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Less: High Quality Oil Company Receivables, gross
  (B1).

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Other Eligible Accounts
  Receivables, gross (C1+C2-C3)

  	
   

  	
   

  	
   

  	
   

  	
  = $

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Less: Accounts arising from a transaction with an
  Affiliate or Employee.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
													

 

 

	
  6.               Less: Accounts where the invoice provides that
  payment is due in more than thirty (30) days from the date of such invoice,
  or any Account that is unpaid more than sixty (60) days after the due date
  thereof.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  7.               Less: Accounts from the same account debtor (or
  any affiliate) where 50% or more of the face amount of such receivable is
  considered ineligible under C6.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  8.               Less: Amounts due from any single account debtor
  and its affiliates, when aggregated, in excess of 20% all Accounts of the
  Credit Parties then outstanding, to the extent of such excess.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  9.               Less: All offsets, counterclaims, unresolved
  disputes or contras, but only to the extent of the amount owed by such Credit
  Party to the account debtor.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  10.         Less: Accounts of any account debtor (i) that has
  commenced a voluntary case under the Bankruptcy Code or made an assignment
  for the benefit of creditors; (ii) where a decree or order for relief has
  been entered by a court in an involuntary case under the Bankruptcy Code;
  (iii) where any petition or other application for relief under the Bankruptcy
  Code has been filed; or (iv) where such account debtor is generally not
  paying its debts as they become due, or has suspended business, ceased to be
  solvent, or consented to or suffered a receiver, trustee, liquidator or
  custodian to be appointed for it or for all or a significant portion of its
  assets or affairs.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  11.         Less: Accounts due from an account debtor outside
  the United States and Canada, unless (i) backed by a letter of credit,
  guaranty or acceptance terms, or credit insurance, in each case reasonably
  acceptable to the Agent, or (ii) otherwise approved and acceptable to the
  Agent in its reasonable discretion.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  12.         Less: Accounts that arise from a sale which
  provides for repurchase or return, or has not been billed by the Credit
  Party, provided that such accounts shall not be ineligible if they arise from
  the sale of goods that are shown on the Borrower’s Released Not Invoiced
  (RNI) report for sales, for no more than 30 days, all in accordance with
  historical practices.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  13.         Less: Account balances of account debtors the
  Agent believes, in its reasonable discretion, to be uncreditworthy.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  14.         Less: Accounts where the account debtor is in the
  United States or any department, agency, or instrumentality thereof, unless
  the Agent has been assigned the rights to payment of such Account pursuant to
  the Assignment of Claims Act of 1940, as amended from time to time.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  15.         Less: Accounts arising from the sale of petroleum
  products, where title has not transferred to the purchaser, per the Borrower’s
  Invoiced Releases Excluded (IRE) report.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  16.         Less: Accounts where the Agent does not have a
  first (except for Permitted Liens) priority, perfected security interest in
  such Account.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  17.         Less: Accounts that do not materially comport with
  all warranties contained in the Credit Documents.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  18.         Less: Accounts the Agent determines to be ineligible
  in its reasonable discretion.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  19.         Total deductions from all other Eligible
  Accounts Receivable. (sum C5:18)

  	
   

  	
   

  	
   

  	
   

  	
  -

  	
  $

  	
  0

  	
   

  	
   

  
	
  20.         all other Eligible Accounts Receivables, net
  (C4 - C19)

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  $

  	
  0

  	
   

  	
   

  
	
  21            Rate of advance

  	
   

  	
   

  	
   

  	
  x 85%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.         Other Eligible Accounts Receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.            Tank Bottoms and Line Fill
  Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.               Eligible Petroleum Inventory consisting of
  tank bottoms and line fill, valued at Market Value.

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Rate of advance

  	
   

  	
   

  	
   

  	
  x 70%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Tank Bottoms and Line Fill Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.              Other Eligible Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.               Market Value of Titled In-Transit Inventory
  and Petroleum Inventory (excluding Tank Bottoms and Line Fill Inventory).

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  	
   

  
	
  2.               Less: Inventory that is owned in whole or in part
  by any Person other than a Credit Party.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Less: Negative Exchange Contract Balances.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  4.               Less: Inventory where the Credit Party does not
  have a good, valid and marketable title.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  5.               Less: Inventory where the Agent does not have a
  first priority, perfected security interest (except for Permitted Liens).

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  6.               Less: Inventory that is not located in the United
  States or Canada, other than Titled In-Transit Inventory and Paid LC Backed
  Inventory.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  7.               Less: Obsolete or slow moving Inventory for which
  a markdown reserve has not been made.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  8.               Less: Inventory that has been returned or
  rejected, for which a credit has yet to be issued.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  9.               Less: In transit Inventory, excluding (i) in
  transit with a Reputable Carrier, (ii) Titled In-Transit Inventory and (iii)
  Paid LC Backed Inventory.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  10.         Less: Inventory pursuant to consignment, sale or
  return, sale on approval or any other similar arrangement.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  11.         Less: Inventory that does not materially conform
  to the warranties contained in the Credit Documents

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  12.         Less: Inventory designated as ineligible in the
  Agent’s reasonable discretion.

  	
   

  	
  -

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  13.         Total deductions from other Eligible
  Inventory (sum of E2:E12)

  	
   

  	
   

  	
   

  	
  -

  	
  $

  	
  0

  	
   

  	
   

  
												

 

2

 

	
  14.         Eligible all other Inventory (E1 - E13)

  	
   

  	
   

  	
   

  	
   

  	
  = $

  	
  0

  	
   

  	
   

  
	
  15.         Rate of advance

  	
   

  	
   

  	
   

  	
   

  	
  x 80%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.         All Other Eligible Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.              Letters of Credit backing
  Paid LC Backed Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.               The aggregate face amount of the related
  Letters of Credit backing Paid LC Backed Inventory

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Rate of advance

  	
   

  	
   

  	
   

  	
   

  	
  x 100%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Letters of Credit backing Paid LC Backed
  Inventory (not to exceed $20,000,000)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
  G.            Positive Exchange Contract
  Balances

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.               The market value of any rights of the Credit
  Parties to receive petroleum products, money or other value arising from the
  trading, lending, borrowing or exchange of petroleum products, subject to a valid,
  first (subject to Permitted Liens) priority, perfected Lien in favor of the
  Agent.

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Less: All offsets or counterclaims.

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Eligible Positive Exchange Contract Balances
  (G1-G2)

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  4.               Rate of advance

  	
   

  	
   

  	
   

  	
   

  	
  x 80%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.               Positive Exchange Contract Balances

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  = $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.            Reserves

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.               State and federal excise tax liabilities
  that have a legal priority over the Lien and claim of the Agent.

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Average monthly payments, rents, storage
  charges and tariffs due to 3rd parties holding or controlling Eligible
  Petroleum Inventory.

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  3.               Real Estate Reserve

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  4.               Current Derivative Exposure

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  5.               Other reserves established by the Agent in
  its reasonable discretion.

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
  6.               Total Reserves (sum H1:H5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
     $

  

 

In connection with the foregoing, we hereby acknowledge and agree that
to the best of our knowledge, as of the date hereof, the Agreement remains in
full force and effect, is binding upon us and enforcea us in accordance with
its terms, and we certify to you that, as of the date hereof, there exists no
Event of Default under said Agreement or even which, with the passage of time
or the giving of notice, or bc so constitute an Event of Default. We hereby
restate and renew each and every representation and warranty made by us in the
Agreement in connection therewith, effective as of the date hereof.

 

 

	
  TransMontaigne
  Inc.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

3

 

EXHIBIT L

 

[FORM OF] GUARANTOR JOINDER AGREEMENT

 

THIS
GUARANTOR JOINDER AGREEMENT (this “Agreement”),
dated as of
                   ,
20      , is by and between
                              ,
a                                             (the
“Joining Guarantor”), and
WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”)
under that certain Amended and Restated Senior Secured Working Capital Credit
Facility (together with all modifications, renewals, extensions, supplements
and replacements from time to time, the “Credit Agreement”) dated as of
May 27, 2005 by and among TRANSMONTAIGNE INC., a
Delaware corporation (the “Borrower”), the Lenders party thereto, JPMorgan Chase Bank, N.A. and
UBS AG, Stamford Branch, as Syndication Agents, Société Générale, New York
Branch and Wells Fargo Foothill, LLC, as the Documentation Agents, and the
Agent.  All of the defined terms in the
Credit Agreement are incorporated herein by reference.

 

The
Joining Guarantor is required to become a Guarantor pursuant to the terms of
the Credit Agreement.

 

Accordingly
the Joining Guarantor hereby agrees as follows with the Agent, for the benefit
of the Lenders:

 

1.                                       The
Joining Guarantor hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the Joining Guarantor will be deemed to be a party
to the Guaranty Agreement and a “Guarantor” for all purposes of the Guaranty
Agreement and the other Credit Documents, and shall have all of the obligations
of a Guarantor thereunder as if it has executed the Guaranty Agreement and the
other Credit Documents, as applicable. 
The Joining Guarantor
hereby ratifies, as of the date hereof, and agrees to be bound by, all of the
terms, provisions and conditions contained in the Credit Agreement and in the
Credit Documents applicable to a Guarantor as a Credit Party, including without
limitation (i) all of the representations and warranties of the Credit Parties
set forth in Article VI of the Credit Agreement and (ii) all of the affirmative
and negative covenants set forth in Articles VII, VIII and IX of the Credit
Agreement.

 

2.                                       The
Joining Guarantor hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the Joining Guarantor will be deemed to be a party
to the Security Agreement, and shall have all the obligations of an “Obligor”
(as such term is defined in the Security Agreement) thereunder as if it had
executed the Security Agreement.  The
Joining Guarantor hereby ratifies, as of the date hereof, and agrees to be
bound by, all of the terms, provisions and conditions contained in the Security
Agreement.  Without limiting generality
of the foregoing terms of this paragraph 2, the Joining Guarantor hereby
grants to the Agent, for the benefit of the Lenders, a continuing security
interest in, and a right of set off against any and all right, title and
interest of the Joining Guarantor in and to the Collateral (as such term is
defined in Section 2 of the Security Agreement) of the Joining
Guarantor.

 

3.                                       The
Joining Guarantor hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the Joining Guarantor will be deemed to be a party
to the Contribution Agreement, and shall have all the obligations of a “Contributing
Party” thereunder

 

 

as if it had executed the
Contribution Agreement.  The Joining Guarantor
hereby ratifies, as of the date hereof, and agrees to be bound by, all the
terms, provisions and conditions contained in the Contribution Agreement.

 

4.                                       The
Joining Guarantor hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the Joining Guarantor will be deemed to be a party
to the Pledge Agreement, and shall have all the obligations of a “Pledgor”
thereunder as if it had executed the Pledge Agreement.  The Joining Guarantor hereby ratifies, as of
the date hereof, and agrees to be bound by, all the terms, provisions and
conditions contained in the Pledge Agreement. 
Without limiting the generality of the foregoing terms of this paragraph
3, the Joining Guarantor hereby pledges and assigns to the Agent, for the
benefit of the Lenders, and grants to the Agent, for the benefit of the
Lenders, a continuing security interest in any and all right, title and
interest of the Joining Guarantor in and to Pledged Shares (as such term is
defined in Section 2 of the Pledge Agreement) and the other Pledged
Collateral (as such term is defined in Section 2 of the Pledge
Agreement).

 

5.                                       The
Joining Guarantor acknowledges and confirms that it has received a copy of the
Credit Agreement and the schedules and exhibits thereto, the Pledge Agreement
and the schedules and exhibits thereto and the Security Agreement and the
schedules and exhibits relating thereto and the Guaranty Agreement.  The schedules to the Credit Agreement, the
Pledge Agreement and the Security Agreement are amended to provide the
information shown on the attached Schedule A.

 

6.                                       The
Joining Guarantor confirms that all of the Obligations under the Guaranty
Agreement, upon the Joining Guarantor becoming a Guarantor will and shall
continue to be, in full force and effect.

 

7.                                       The
Joining Guarantor hereby agrees that upon becoming a Guarantor it will assume
all Guaranteed Obligations of a Guarantor as set forth in the Guaranty
Agreement.

 

8.                                       The
Joining Guarantor agrees that at any time and from time to time, upon the
written request of the Agent, it will execute and deliver such further
documents and do such further acts and things as the Agent may reasonably
request in order to effect the purposes of this Certificate.

 

9.                                       This
Agreement may be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute
one contract.

 

10.                                 This
Agreement shall be governed by and construed and interpreted in accordance with
the laws of the State of New York, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW
PROVISIONS THEREOF other than Section 5-1401
of the New York General Obligations Law.

 

2

 

IN
WITNESS WHEREOF, the Joining Guarantor has caused this
Joinder Agreement to be duly executed by its authorized officers, and the
Agent, for the benefit of the Lenders, has caused the same to be accepted by
its authorized officer, as of the day and year first above written.

 

 

	
   

  	
  [JOINING
  GUARANTOR]>>

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

3

 

SCHEDULE A

to

Joinder Agreement

 

Schedule 1(b) to Security Agreement

Intellectual Property

 

Schedule 2(d) to Security Agreement

Commercial Tort Claims

 

Schedule 4(a)(i) to Security Agreement

Chief Executive Office/Principal Place of Business/

Exact Legal Name/State of Formation

 

Schedule 2(a) to Pledge Agreement

Pledged Capital Stock

 

4

 

EXHIBIT M

 

[FORM OF] SOLVENCY CERTIFICATE

 

 (Dated as of                       ,
        )

 

The
undersigned [TITLE] of TRANSMONTAIGNE INC. (the “Company”), a Delaware corporation, is familiar with the properties, businesses,
assets and liabilities of the Company and is duly authorized to execute this
certificate on behalf of the Company.

 

Reference
is made to that Amended and Restated Senior Secured Working Capital Credit
Facility dated as of May 27, 2005 among the Company, as the Borrower, JPMorgan
Chase Bank, N.A. and UBS AG, Stamford Branch, as Syndication Agents, Société
Générale, New York Branch and Wells Fargo Foothill, LLC, as the Documentation
Agents, Wachovia Bank, National Association, as agent (the “Agent”), and
the lenders from time to time parties thereto (the “Lenders”) (together
with all modifications, renewals, extensions, supplements and replacements from
time to time, the “Credit Agreement”). 
All capitalized terms used and not defined herein have the meanings
stated in the Credit Agreement.

 

1.                                       The
undersigned certifies that, to his knowledge, he/she has made such
investigation and inquiries as to the financial condition of the Company as
he/she deems necessary and prudent for the purpose of providing this
Certificate.  The undersigned acknowledges
that the Agent and the Lenders are relying on the truth and accuracy of this
Certificate in connection with making of the Loans and issuing or participating
in Letters of Credit under the Credit Agreement.

 

2.                                       The
undersigned certifies that the financial information, projections and
assumptions which underlie and form the basis for the representations made in
this Certificate were reasonable when made and were made in good faith and
continue to be reasonable as of the date hereof.

 

BASED
ON THE FOREGOING, the undersigned certifies that, as of the Closing Date and
after giving effect to the IPO:

 

A.                                   The Company and its
Subsidiaries, on a consolidated basis, are able to pay their debts and other
liabilities, contingent obligations and other commitments as they mature in the
normal course of business.

 

B.                                     The Company and
its Subsidiaries, on a consolidated basis, do not intend to incur debts or
liabilities beyond their ability to pay as such debts and liabilities mature in
their ordinary course.

 

C.                                     The Company and
its Subsidiaries, on a consolidated basis, are not engaged in any business or
transaction, and are not about to engage in any business or transaction, for
which the assets of the Company and its Subsidiaries, on a consolidated basis,
would constitute unreasonably small capital after giving due consideration to
the prevailing practice in the industry in which the Company and its
Subsidiaries are engaged or are to engage.

 

 

D.                                    The present fair
saleable value of the consolidated assets of the Company and its Subsidiaries,
taken on a going concern basis, is not less than the amount that will be
required to pay the probable liability on the debts of the Company and its
Subsidiaries, on a consolidated basis, as they become absolute and matured.  For all purposes hereunder, the term “liabilities”
shall not include any inter-company amounts payable to another Credit Party.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

2

 

IN
WITNESS WHEREOF, the undersigned has executed this Certificate this May 27,
2005, in his/her capacity as the                       
of the Company.

 

 

	
   

  	
  TRANSMONTAIGNE
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

3

 

EXHIBIT N

 

FORM OF
CONTRIBUTION AGREEMENT

 

THIS AMENDED AND RESTATED
CONTRIBUTION AGREEMENT (this “Agreement”) is entered into as of May 27,
2005, by and among TRANSMONTAIGNE INC.
(the Borrower), and TRANSMONTAIGNE PRODUCT
SERVICES INC., COASTAL FUELS MARKETING,
INC., COASTAL TUG AND BARGE, INC.,  TRANSMONTAIGNE TRANSPORT INC. and TRANSMONTAIGNE
SERVICES INC. (collectively, together with any subsidiary of the
Borrower which becomes a Guarantor pursuant to Section 7.16 of the
Credit Agreement referred to below, the “Subsidiary Guarantors”); respectively
organized under the laws of the states set forth on the signature pages below
their names.  The Borrower and each of
the Subsidiary Guarantors are sometimes hereinafter referred to individually as
a “Contributing Party” and collectively as the “Contributing Parties”).

 

W  I  T  N  E
S  S  E  T  H :

 

WHEREAS, pursuant to that
certain Amended and Restated Senior Secured Working Capital Credit Facility
among the Borrower, JPMorgan Chase Bank, N.A. and UBS AG, Stamford Branch, as
Syndication Agents, Société Générale, New York Branch and Wells Fargo Foothill,
LLC, as the Documentation Agents, WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent
for itself and the other “Lenders” which are party thereto from time to time,
dated as of even date herewith (together with all modifications, renewals,
extensions, supplements and replacements from time to time, the “Credit
Agreement”); unless otherwise provided herein, capitalized terms used in
this Agreement have the meanings set forth in the Credit Agreement), the
Lenders have agreed to extend financial accommodations to the Borrower;

 

WHEREAS, as a condition,
among others, to the Agent’s and the Lenders’ willingness
to enter into the Credit Agreement, the Lenders have required that each
Domestic Restricted Subsidiary become unconditionally and jointly and severally
liable on the “Guaranteed Obligations” (as defined in the Guaranty
Agreement) as a Subsidiary Guarantor and a party to the Guaranty Agreement;

 

WHEREAS,
pursuant to the Original Credit Agreement, the Contributing Parties (other than
TransMontaigne Services Inc.) executed and delivered the Contribution Agreement
referred to therein (the “Original Contribution Agreement”), and this
Contribution Agreement is an amendment and restatement of the Original
Contribution Agreement and the parties intend that the Original Contribution
Agreement be superceded and replaced by this Contribution Agreement, but that
the security interests granted pursuant to the Original Contribution Agreement
continue in force pursuant hereto without interruption and that this
Contribution Agreement not be a novation of the Original Contribution
Agreement.

 

 

WHEREAS, each
Contributing Party other than the Company is a wholly-owned direct or indirect
subsidiary of the Company and is engaged in businesses related to those of the
Company and each other Subsidiary, and each of the Contributing Parties will
derive direct or indirect economic benefit from the effectiveness and existence
of the Credit Agreement;

 

NOW, THEREFORE, in
consideration of the premises and the covenants hereinafter contained, and to
induce each Subsidiary Guarantor to be unconditionally and jointly and
severally liable as a Subsidiary Guarantor under the Guaranty Agreement, it is
agreed as follows:

 

To the extent that any
Contributing Party other than the Company shall, under the Credit Agreement or
the Guaranty Agreement (as to the Guarantors), make a payment (a “Subsidiary
Payment”) of a portion of the Guaranteed Obligations, then such
Contributing Party shall be entitled to contribution and indemnification from,
and be reimbursed by, each of the other Contributing Parties in an amount, for
each such Contributing Party, equal to a fraction of such Subsidiary Payment,
the numerator of which fraction is such Contributing Party’s Allocable Amount
and the denominator of which is the sum of the Allocable Amounts of all of the
Contributing Parties.

 

As of any date of
determination, the “Allocable Amount” of each Contributing Party shall
be equal to the maximum amount of liability which could be asserted against
such Contributing Party hereunder with respect to the applicable Subsidiary
Payment without (i) rendering such Contributing Party “insolvent” within the
meaning of Section 101(31) of the Federal Bankruptcy Code (the “Bankruptcy
Code”) or Section 2 of either the Uniform Fraudulent Transfer Act (the
“UFTA”) or the Uniform Fraudulent Conveyance Act (the “UFCA”),
(ii) leaving such Contributing Party with unreasonably small capital, within
the meaning of Section 548 of the Bankruptcy Code or Section 4 of the
UFTA or Section 5 of the UFCA, or (iii) leaving such Contributing Party
unable to pay its debts as they become due within the meaning of Section 548
of the Bankruptcy Code or Section 4 of the UFTA or Section 6 of the
UFCA.

 

This Agreement is
intended only to define the relative rights of the Contributing Parties, and
nothing set forth in this Agreement is intended to or shall impair the
obligations of the Company’s Subsidiaries, jointly and severally, to pay any
amounts, as and when the same shall become due and payable in accordance with
the terms of the Credit Agreement or the Guaranty Agreement, as the case may
be.

 

The parties hereto
acknowledge that the rights of contribution and indemnification hereunder shall
constitute assets in favor of each of the Company’s Subsidiary to which such
contribution and indemnification is owing.

 

This Agreement shall
become effective upon its execution by each of the Contributing Parties and
shall continue in full force and effect and may not be terminated or otherwise
revoked by any Contributing Party until all of the Credit and Collateral
Termination Events have occurred.  Each
Contributing Party agrees that if, notwithstanding the foregoing, such
Contributing Party shall have any right under applicable law to terminate or
revoke this Agreement, and such Contributing Party shall attempt to exercise
such right, then such termination or revocation shall not be effective until a
written notice of such revocation or termination, specifically referring hereto
and signed by such Contributing Party, is actually

 

2

 

received by each of the
other Contributing Parties and by the Agent at its notice address set forth in
the Credit Agreement or the Guaranty Agreement, as the case may be.  Such notice shall not affect the right or
power of any Contributing Party to enforce rights arising prior to receipt of
such written notice by each of the other Contributing Parties and the
Agent.  If any Lender grants additional
loans to the Borrower or takes other action giving rise to additional
Obligations after any Contributing Party has exercised any right to terminate
or revoke this Agreement but before the Agent receives such written notice, the
rights of each other Contributing Party to contribution and indemnification
hereunder in connection with any Subsidiary Payments made with respect to such
loans or Obligations shall be the same as if such termination or revocation had
not occurred.

 

3

 

IN WITNESS
WHEREOF, each Contributing Party has executed and delivered this Agreement,
under seal, as of the date first above written.

 

	
   

  	
  TRANSMONTAIGNE
  INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  PRODUCT SERVICES INC.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COASTAL
  FUELS MARKETING, INC.

  
	
   

  	
  a Florida
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COASTAL
  TUG AND BARGE, INC.

  
	
   

  	
  a Florida
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE
  TRANSPORT INC.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

4

 

	
   

  	
  TRANSMONTAIGNE
  SERVICES INC.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

5

 

EXHIBIT O

 

FORM OF NOTICE OF LETTER
OF CREDIT

 

TO: The Agent under that
certain Amended and Restated Senior Secured Working Capital Credit Facility,
dated as of May 27, 2005 (together with all modifications, renewals,
extensions, supplements and replacements from time to time, the “Credit
Agreement”), among TRANSMONTAIGNE INC., a Delaware corporation, certain other borrowing entities party
thereto, the financial institutions party thereto, JPMorgan Chase Bank, N.A.
and UBS AG, Stamford Branch, as Syndication Agents, Société Générale, New York
Branch and Wells Fargo Foothill, LLC, as the Documentation Agents, and WACHOVIA
BANK, NATIONAL ASSOCIATION, as Agent.  Unless
otherwise defined herein, terms defined in the Credit Agreement shall have the
same meaning in this notice.

 

Pursuant to Section 3.2 of the Credit
Agreement, the Issuing Bank hereby certifies to the Agent that it has issued
the following Letter of Credit pursuant to Article III of the Credit Agreement:

 

	
  Letter of

  Credit No.

  and Face

  Amount

  	
   

  	
  Date of Issuance

  	
   

  	
  Expiry Date

  	
   

  	
  Letter of

  Credit Purpose

  	
   

  	
  Beneficiary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A copy of the Letter of Credit listed above has been
attached hereto.

 

The Issuing Bank undertakes to notify the Agent by
facsimile or other electronic means of any amendment, extension or cancellation
of the Letter of Credit.

 

Date: [                                    ].

 

	
   

  	
       [ISSUING BANK]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
     Name:

  	
   

  	
   

  
	
   

  	
     Title:Exhibit 10.2

 

Execution Copy

 

 

 

OMNIBUS AGREEMENT

 

among

 

TRANSMONTAIGNE INC.

 

TRANSMONTAIGNE GP L.L.C.

 

TRANSMONTAIGNE PARTNERS L.P.

 

TRANSMONTAIGNE OPERATING GP L.L.C.

 

and

 

TRANSMONTAIGNE OPERATING COMPANY L.P.

 

 

 

 

OMNIBUS AGREEMENT

 

THIS OMNIBUS AGREEMENT (“Agreement”) is entered into
on, and effective as of, the Closing Date (as defined herein), and is by and
among TransMontaigne Inc., a Delaware corporation (“TMG”), TransMontaigne GP
L.L.C., a Delaware limited liability company (the “General Partner”), TransMontaigne
Partners L.P., a Delaware limited partnership (the “Partnership”), TransMontaigne
Operating GP L.L.C., a Delaware limited liability company (the “OLP GP”), and TransMontaigne
Operating Company L.P., a Delaware limited partnership (the “Operating
Partnership”).  The above-named entities
are sometimes referred to in this Agreement each as a “Party” and collectively
as the “Parties.”

 

R E C I T A L S:

 

1.             The
Parties desire by their execution of this Agreement to evidence their understanding,
as more fully set forth in Article II, with respect to Tangible Assets (as
defined herein) that TMG will offer to sell to the Partnership during the term
of this Agreement.

 

2.             The
Parties desire by their execution of this Agreement to evidence their understanding,
as more fully set forth in Article III, with respect to certain
indemnification obligations of the Parties to each other.

 

3.             The
Parties desire by their execution of this Agreement to evidence their understanding,
as more fully set forth in Article IV, with respect to the amount to be paid by
the Partnership for certain corporate staff and support services to be
performed by TMG and its Affiliates (as defined herein) for and on behalf of
the Partnership Group.

 

4.             The Parties desire by
their execution of this Agreement to evidence their understanding, as more
fully set forth in Article V, with respect to the Partnership’s exclusive options
to purchase the Option Assets (as defined herein).

 

5.             The Parties desire by
their execution of this Agreement to evidence their understanding, as more
fully set forth in Article VI, with respect to certain rights of first refusal to
be granted to TMG and the Partnership.

 

In consideration of the premises and the covenants, conditions, and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto
hereby agree as follows:

 

ARTICLE I

Definitions

 

1.1          Definitions.

 

As used in this Agreement, the following terms shall have the
respective meanings set forth below:

 

“Acquired Assets” is defined in
Section 2.2(c).

 

 

“Administrative Fee” is defined in
Section 4.1(a).

 

“Affiliate” is defined in the
Partnership Agreement.

 

“Agreement”
is defined in the introductory paragraph of this Agreement.

 

“Applicable Period” is defined in
Section 4.1(a).

 

“Asset Exchange Transactions” means any transaction in which a TMG Entity
and a third party exchange terminaling assets or other tangible assets.

 

“Assets” means all assets conveyed, contributed,
or otherwise transferred by the TMG Entities to the Partnership Group prior to
or on the Closing Date, including any such assets held by a Person whose
ownership interests are transferred by the TMG Entities to the Partnership
Group prior to or on the Closing Date by means of operation of law or
otherwise.

 

“Brownsville Option” is defined in
Section 5.1(a).

 

“Cause” is
defined in the Partnership Agreement.

 

“Change of
Control” means any of the following events:  (a) any sale, lease, exchange, or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of TMG’s assets to any other Person unless immediately
following such sale, lease, exchange, or other transfer such assets are owned,
directly or indirectly, by TMG; (b) the consolidation or merger of TMG
with or into another Person pursuant to a transaction in which the outstanding
Voting Securities of TMG are changed into or exchanged for cash, securities, or
other property, other than any such transaction where (i) the outstanding
Voting Securities of TMG are changed into or exchanged for Voting Securities of
the surviving Person or its parent and (ii) the holders of the Voting
Securities of TMG immediately prior to such transaction own, directly or indirectly,
not less than a majority of the Voting Securities of the surviving Person or
its parent immediately after such transaction; or (c) a “person” or “group”
(within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act),
other than a group consisting of some or all of the persons currently
controlling TMG, being or becoming the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of
the then outstanding Voting Securities of TMG, except in a merger or
consolidation that would not constitute a Change of Control under
clause (b) above.

 

“Closing
Date” means the date of the closing of the Partnership’s
initial public offering of Common Units.

 

“Common
Units” is defined in the Partnership Agreement.

 

“Conflicts
Committee” is defined in the Partnership Agreement.

 

“Constructed Assets” is defined in
Section 2.2(d).

 

2

 

“Contribution Agreement” means that certain
Contribution, Conveyance and Assumption Agreement, dated as of the Closing
Date, among TMG, TransMontaigne Services Inc., TransMontaigne Product Services
Inc., the General Partner, the Partnership, the OLP GP, the Operating
Partnership, Coastal Fuels Marketing, Inc. and certain other parties, together
with the additional conveyance documents and instruments contemplated or
referenced thereunder.

 

“control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through
ownership of voting securities, by contract, or otherwise.

 

“Covered Environmental Losses” is defined in
Section 3.1(a).

 

“Environmental Laws” means
all federal, state and local laws, statutes, rules, regulations, orders and
ordinances, legally enforceable requirements and rules of common law, now or
hereafter in effect, relating to the protection of the environment including,
without limitation, the federal Comprehensive Environmental Response,
Compensation, and Liability Act, the Superfund Amendments Reauthorization Act,
the Resource Conservation and Recovery Act, the Clean Air Act, the Federal
Water Pollution Control Act, the Toxic Substances Control Act, the Oil
Pollution Act, the Safe Drinking Water Act, the Hazardous Materials
Transportation Act, and other environmental conservation and protection laws,
each as amended from time to time.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as
amended.

 

“General
Partner” is defined in the introductory paragraph of
this Agreement.

 

“Hazardous Substance” means
(a) any substance that is designated, defined or classified as a hazardous
waste, hazardous material, pollutant, contaminant or toxic or hazardous
substance, or that is otherwise regulated under any Environmental Law,
including, without limitation, any hazardous substance as such term is defined
under the Comprehensive Environmental Response, Compensation, and Liability
Act, as amended, (b) petroleum, petroleum products, crude oil, oil, gasoline,
natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel, and other
petroleum hydrocarbons, whether refined or unrefined and (c) asbestos, whether
in a friable or non-friable condition, and polychlorinated biphenyls.

 

“Indemnified Party” means either the
Partnership Entities or the TMG Entities, as the case may be, each in its
capacity as a party entitled to indemnification in accordance with Article III.

 

“Indemnifying Party” means either a
Partnership Group Member or TMG, as the case may be, each in its capacity as a
party from whom indemnification may be sought in accordance with Article III.

 

“Indenture”
means the Indenture, dated May 30, 2003, by and among TMG and the subsidiary
guarantors listed on the signature pages thereto and Wells Fargo Bank
Minnesota, National Association, as Trustee, relating to the Notes.

 

3

 

“Insurance Reimbursement” is defined in
Section 4.1(b).

 

“Limited Partner” is defined in the
Partnership Agreement.

 

“Notes”
is defined in Section 2.2(f).

 

“OLP GP”
is defined in the introductory paragraph of this Agreement.

 

“Operating
Partnership” is defined in the introductory paragraph
of this Agreement.

 

“Options” is defined in Section 5.1(a).

 

“Option
Assets” is defined in Section 5.1(a).

 

“Option Term Sheet” is defined in
Section 5.2(a).

 

“Partnership”
is defined in the introductory paragraph of this Agreement.

 

“Partnership Acceptance Deadline” is defined
in Section 6.2(b).

 

“Partnership Acquisition Proposal” is defined
in Section 6.2(a).

 

“Partnership
Agreement” means the First Amended and Restated
Agreement of Limited Partnership of TransMontaigne Partners L.P., dated as of
the Closing Date, as such agreement is in effect on the Closing Date, to which
reference is hereby made for all purposes of this Agreement.  No amendment or modification to the
Partnership Agreement subsequent to the Closing Date shall be given effect for
the purposes of this Agreement unless consented to by each of the Parties to
this Agreement.

 

“Partnership Disposition Notice” is defined in
Section 6.2(a).

 

“Partnership
Entities”
means the General Partner and each member of the Partnership Group; and “Partnership Entity”
means any of the Partnership Entities.

 

“Partnership
Group” means the Partnership, the OLP GP, the
Operating Partnership and any Subsidiary of any such Person, treated as a
single consolidated entity; and “Partnership Group Member” means any member of the Partnership Group.

 

“Partnership Offer Price” is defined in
Section 6.2(a).

 

“Party” and
“Parties” are defined in the introductory
paragraph of this Agreement.

 

“Person”
means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government
agency or political subdivision thereof or other entity.

 

“Pipeline Terminals Option” is defined in
Section 5.1(a).

 

4

 

“Proposed Option Price” is defined in
Section 5.2(b).

 

“Proposed Price” is defined in
Section 2.3(b).

 

“Proposed Transferee” is defined in
Section 6.1(a).

 

“Retained Assets” means the terminals,
pipelines and other assets and investments owned by any of the TMG Entities as
of the Closing Date that were not conveyed, contributed or otherwise
transferred to the Partnership Group pursuant to the Contribution Agreement and
other documents relating to the transactions referred to in the Contribution
Agreement, including, without limitation, replacements and natural extensions
of any Retained Assets.

 

“River Terminals Option” is defined in
Section 5.1(a).

 

“ROFR Assets” is defined in
Section 6.1(c).

 

“Services” is defined in Section 4.1(a).

 

“Subsidiary” means, with respect to any
Person, (a) a corporation of which more than 50% of the voting power of shares
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors or other governing body of such corporation is owned,
directly or indirectly, at the date of determination, by such Person, by one or
more Subsidiaries of such Person or a combination thereof, (b) a partnership
(whether general or limited) in which such Person or a Subsidiary of such
Person is, at the date of determination, a general or limited partner of such
partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as
a single class) is owned, directly or indirectly, at the date of determination,
by such Person, by one or more Subsidiaries of such Person, or a combination
thereof, or (c) any other Person (other than a corporation or a partnership) in
which such Person, one or more Subsidiaries of such Person, or a combination
thereof, directly or indirectly, at the date of determination, has (i) at least
a majority ownership interest or (ii) the power to elect or direct the election
of a majority of the directors or other governing body of such Person.

 

“Tangible
Assets” is defined in Section 2.1(a).

 

“Term Sheet” is defined in
Section 2.3(a).

 

“Terminaling and Transportation Services Agreement”
means that certain Terminaling and Transportation Services Agreement, dated as
of the date hereof, among TransMontaigne Product Services Inc., Coastal Fuels
Marketing, Inc. and the Partnership.

 

“TMG”
is defined in the introductory paragraph of this Agreement.

 

“TMG Acceptance Deadline” is defined in
Section 6.2(a).

 

“TMG Acquisition Proposal” is defined in
Section 6.2(b).

 

5

 

“TMG Disposition Notice” is defined in
Section 6.2(b).

 

“TMG
Entities” means TMG and any Person controlled,
directly or indirectly, by TMG other than the Partnership Entities; and “TMG Entity”
means any of the TMG Entities.

 

“TMG Offer Price” is defined in
Section 6.2(b).

 

“Toxic Tort” means a claim or cause of action
arising from personal injury or property damage incurred by the plaintiff that
is alleged to have been caused by exposure to, or contamination by, Hazardous
Substances that have been released into the environment by or as a result of
the actions or omissions of the defendant.

 

“Transfer”, including the correlative terms “Transferring” or “Transferred”, means any direct or
indirect transfer, assignment, sale, gift, pledge, hypothecation or other
encumbrance, or any other disposition (whether voluntary, involuntary or by
operation of law) of any assets, property or rights.

 

“Units” is defined in the Partnership
Agreement.

 

“Voluntary Cleanup Program” means a program of
the United States or a state of the United States enacted pursuant to
Environmental Laws which provides for a mechanism for the written approval of,
or authorization to conduct, voluntary remedial action for the clean-up,
removal or remediation of contamination that exceeds actionable levels
established pursuant to Environmental Laws.

 

“Voting
Securities” means securities of any class of a Person
entitling the holders thereof to vote on a regular basis in the election of
members of the board of directors or other governing body of such Person.

 

ARTICLE II

Offers to Sell Tangible Assets

 

2.1          Tangible
Assets.

 

(a)           For
so long as a TMG Entity controls the General Partner, and subject to the exceptions
set forth in Section 2.2, TMG shall be required to offer, and to cause the
other TMG Entities to offer, to the Partnership, pursuant to the procedures set
forth in Section 2.3, any tangible asset or group of tangible assets that any
TMG Entity either

 

(i) acquires
(by means of purchase, or by means of lease or joint venture arrangements
controlled by a TMG Entity and extending for more than five years; provided
that any TMG Entity’s obligation to make an offer with respect to any joint
venture arrangement will be subject to the terms and conditions of such
arrangement (including any rights of first refusal), and will be limited to
such TMG Entity’s interest in such asset) or

 

6

 

(ii) constructs
(either on its own or by means of joint venture arrangements controlled by a
TMG Entity and extending for more than five years; provided that any TMG Entity’s
obligation to make an offer with respect to any joint venture arrangement will
be subject to the terms and conditions of such arrangement (including any
rights of first refusal), and will be limited to such TMG Entity’s interest in
such asset).

 

Both (i) and
(ii) above relate to the storage, transportation or terminaling of refined
petroleum products in the United States, provided such assets generate “qualifying
income” (as defined in Section 7704 of the Internal Revenue Code) (“Tangible
Assets”).

 

(b)           The
Parties acknowledge that any potential Transfer of Tangible Assets pursuant to
this Article II shall be subject to, conditioned on and in compliance with the
terms and conditions of the Indenture and the obtaining of any and all
necessary consents of equityholders, noteholders or other securityholders, governmental
authorities, lenders or other third parties. 
If TMG believes in good faith that the consent of holders of its Notes
is required under the Indenture for the Transfer of any Tangible Assets and if
the Tangible Assets to be transferred have a fair value or construction cost
(determined as provided in Section 2.2(c), or (d) as applicable) in excess of
$50 million, then TMG will use commercially reasonable efforts to obtain such
consent.  If TMG is not successful in
obtaining the necessary consent of the holders of the Notes, then it will use
commercially reasonable efforts to redeem the Notes on terms set forth in the
Indenture or otherwise determined by TMG to be economical to TMG; provided,
that TMG shall have no obligation hereunder to pay any premium in connection
with any such redemption of the Notes. 
If the exercise of any of the Partnership’s rights to acquire Tangible
Assets hereunder is prevented or delayed due to TMG’s failure to obtain the
consent of the holders of, or to redeem, the Notes, then the exercise period
for each such right shall be automatically extended until such time as the
exercise thereof will not be so prevented or delayed.

 

2.2          Permitted
Exceptions.  Notwithstanding any other provision of this
Agreement, TMG shall not be required to offer or to cause the other TMG
Entities to offer to the Partnership any of the following Tangible Assets or
groups of Tangible Assets:

 

(a)           any
Retained Assets, including, without limitation, the Option Assets unless and
until purchased by a Partnership Group Member;

 

(b)           any
Tangible Asset or group of Tangible Assets acquired or constructed by a TMG
Entity with the written approval of the Conflicts Committee to the effect that
such acquired or constructed Tangible Assets are permitted to be excepted from
the provisions of Section 2.1 hereof;

 

(c)           any
Tangible Asset or group of Tangible Assets acquired, including as part of a
larger acquisition of other assets, by a TMG Entity after the Closing Date (the
“Acquired Assets”) if the fair value of the Acquired Assets (as determined in

 

7

 

good faith by written resolution of the Board of Directors of TMG) does
not exceed $10.0 million;

 

(d)           any
Tangible Asset or group of Tangible Assets, or capital improvements to Tangible
Assets, constructed, including as part of a larger construction project, by a
TMG Entity after the Closing Date (the “Constructed Assets”) if the estimated
construction cost of the Constructed Assets (as determined in good faith by
written resolution of the Board of Directors of TMG) does not exceed $10.0
million;

 

(e)           any
Tangible Asset acquired in connection with an Asset Exchange Transaction; and

 

(f)            subject
to the provisions of Section 2.1(b), any Tangible Asset or group of Tangible Assets
that, in the opinion of counsel for TMG, if purchased by the Partnership would
require approval of the stockholders of TMG or the holders of its 9-1/8% Senior
Subordinated Notes due 2010 (the “Notes”) under the Indenture, unless and until
such approval is obtained.

 

2.3          Procedures.

 

(a)           No
later than two years following (i) the closing date of the acquisition of any
Tangible Asset or group of Tangible Assets, or (ii) the date on which a capital
improvement of any Tangible Asset or group of Tangible Assets is first put into
commercial service following completion of construction and testing, as
applicable, TMG shall notify the General Partner that the Partnership will have
a one-year opportunity to purchase the Tangible Asset or group of Tangible
Assets.  The General Partner shall notify
TMG in writing during such one-year period that either (A) the General Partner
has elected, with the approval of the Conflicts Committee, not to cause a
Partnership Group Member to pursue the opportunity, in which case the TMG
Entities may own, operate or Transfer the Tangible Asset or group of Tangible
Assets without any further obligation to offer the Tangible Asset or group of
Tangible Assets to the Partnership (including pursuant to Article VI), or (B)
the General Partner has elected to cause a Partnership Group Member to pursue
the opportunity.  If during such one-year
period the General Partner notifies TMG that it wishes to cause a Partnership
Group Member to pursue the opportunity, within 45 days after such notification TMG
shall submit a term sheet (a “Term Sheet”) to the General Partner containing
the fundamental terms (other than purchase price and in accordance with the
requirements of the Indenture, if applicable) on which it would be willing to
sell (or to cause another TMG Entity to sell) the Tangible Asset or group of
Tangible Assets, including any proposed commitments from the TMG Entities, if
any.

 

(b)           Within
45 days after delivery of the Term Sheet, the General Partner shall determine,
on behalf of the Partnership and with the concurrence of the Conflicts
Committee, whether it wishes to cause a Partnership Group Member to acquire the
Tangible Asset or group of Tangible Assets and submit to TMG the cash purchase
price (the “Proposed Price”) it is willing to cause the Partnership Group
Member to pay for the Tangible Asset or group of Tangible Assets and that would
satisfy the

 

8

 

requirements of the Indenture, if applicable.  If the General Partner either (i) fails to
respond to the Term Sheet within 45 days of TMG’s delivery thereof or (ii)
rejects, with the concurrence of the Conflicts Committee, the opportunity, then
the TMG Entities may own, operate or Transfer the Tangible Asset or group of
Tangible Assets without any further obligation to offer the Tangible Asset or
group of Tangible Assets to the Partnership (including pursuant to Article VI).  If the General Partner submits a Proposed
Price, TMG and the Conflicts Committee shall negotiate the terms of the purchase
and sale in good faith for 60 days.  If
TMG and the Conflicts Committee are unable to agree on such terms during such
60-day period, TMG may attempt to sell the Tangible Asset or group of Tangible
Assets to a person who is not an Affiliate of TMG within six months of the
termination of such 60-day period at a purchase price, as determined by written
resolution of the Board of Directors of TMG, not less than 105% of the Proposed
Price and otherwise on terms that are not materially more favorable to the
proposed purchaser than the terms specified in the Term Sheet submitted by TMG
pursuant to Section 2.3(a) with respect to such Tangible Asset or group of
Tangible Assets.  If no sale to a non-Affiliate
occurs within such six-month period, the General Partner shall have the right
(but not the obligation) to cause, on behalf of the Partnership and with the
concurrence of the Conflicts Committee, a Partnership Group Member to purchase
the Tangible Asset or group of Tangible Assets at the Proposed Price and on the
other fundamental terms specified in the Term Sheet provided to the General
Partner pursuant to Section 2.3(a) with respect to the Tangible Asset or group
of Tangible Assets.  The General Partner
shall notify TMG of its intent to cause a Partnership Group Member to purchase
the Tangible Asset or group of Tangible Assets at the Proposed Price, and on
the other fundamental terms specified in the Term Sheet provided to the General
Partner pursuant to Section 2.3(a) with respect to the Tangible Asset or group
of Tangible Assets, within 45 days of the expiration of such six-month period
or such earlier date on which TMG notifies the General Partner that it will no
longer pursue a sale to a non-Affiliate. 
If the General Partner either (A) fails to respond within such 45-day
period or (B) rejects the opportunity, then the TMG Entities may own, operate
or Transfer the Tangible Asset or group of Tangible Assets without any further
obligation to offer the Tangible Asset or group of Tangible Assets to the Partnership
(including pursuant to Article VI).

 

(c)           If
requested by the General Partner, TMG shall use commercially reasonable efforts
to obtain financial statements with respect to any Tangible Asset or group of
Tangible Assets purchased by a Partnership Group Member as required under
Regulation S-X promulgated by the Securities and Exchange Commission or any
successor statute.

 

2.4          Scope of Obligation. 
Subject to the obligations to offer to sell Tangible Assets as set forth
in this Article II, each TMG Entity shall be free to engage in any business
activity, including those that may be in direct competition with any
Partnership Entity.

 

2.5          Enforcement. 
TMG agrees and acknowledges that the Partnership does not have an
adequate remedy at law for the breach by TMG of the covenants and agreements
set forth in this Article II, and that any breach by TMG of the covenants
and agreements set forth in this Article II would result in irreparable
injury to the Partnership.  TMG further
agrees and acknowledges that the Partnership may, in addition to the other
remedies which may be available

 

9

 

to the Partnership, file a suit
in equity to enjoin TMG from such breach, and consent to the issuance of
injunctive relief under this Agreement.

 

ARTICLE III

Indemnification

 

3.1          Environmental
Indemnification.

 

(a)           Subject
to Section 3.2, TMG shall indemnify, defend and hold harmless the Partnership
Group for a period of five years after the Closing Date from and against
environmental and Toxic Tort losses, damages (including, without limitation,
real property damages and natural resource damages), injuries (including,
without limitation, personal injury and death), liabilities, claims, demands,
breaches of contracts, causes of action, judgments, settlements, fines,
penalties, costs and expenses (including, without limitation, court costs and
reasonable attorney’s and expert’s fees) of any and every kind or character,
known or unknown, fixed or contingent, suffered or incurred by the Partnership
Group by reason of or arising out of:

 

(i)            any
violation, or correction of any violation, of Environmental Laws associated
with the ownership or operation of the Assets, or

 

(ii)           any
event or condition associated with the ownership or operation of the Assets
(including, without limitation, the presence of Hazardous Substances on, under,
about or migrating to or from the Assets or the disposal or release of
Hazardous Substances generated by the operation of the Assets at non-Asset
locations) including, without limitation, (A) the cost and expense of any
investigation, assessment, evaluation, monitoring, containment, cleanup,
repair, restoration, remediation, or other corrective action required or
necessary under Environmental Laws or to satisfy any applicable Voluntary
Cleanup Program, (B) the cost or expense of the preparation and implementation
of any closure, remedial, corrective action, or other plans required or
necessary under Environmental Laws or to satisfy any applicable Voluntary
Cleanup Program, and (C) the cost and expense for any environmental or Toxic
Tort pre-trial, trial, or appellate legal or litigation support work;

 

but only to
the extent that such violation complained of under Section 3.1(a)(i) or such
events or conditions included under Section 3.1(a)(ii) occurred before the
Closing Date (collectively, “Covered Environmental Losses”).

 

(b)           The
Partnership Group shall jointly and severally indemnify, defend and hold
harmless the TMG Entities from and against environmental and Toxic Tort losses,
damages (including, without limitation, real property damages and natural
resource damages), injuries (including, without limitation, personal injury and
death), liabilities, claims, demands, breaches of contracts, causes of action,
judgments, settlements, fines, penalties, costs and expenses (including,
without limitation, court costs and reasonable attorney’s and expert’s fees) of
any and every kind or character, known or

 

10

 

unknown, fixed or contingent, suffered or incurred by the TMG Entities
by reason of or arising out of:

 

(i)            any
violation or correction of violation of Environmental Laws associated with the
ownership or operation of the Assets, or

 

(ii)           any
event or condition associated with the ownership or operation of the Assets
(including, but not limited to, the presence of Hazardous Substances on, under,
about or migrating to or from the Assets or the disposal or release of
Hazardous Substances generated by the operation of the Assets at non-Asset
locations) including, without limitation, (A) the cost and expense of any
investigation, assessment, evaluation, monitoring, containment, cleanup,
repair, restoration, remediation, or other corrective action required or
necessary under Environmental Laws, (B) the cost or expense of the preparation
and implementation of any closure, remedial, corrective action, or other plans
required or necessary under Environmental Laws, and (C) the cost and expense
for any environmental or Toxic Tort pre-trial, trial, or appellate legal or
litigation support work;

 

and regardless
of whether such violation complained of under Section 3.1(b)(i) or such events
or conditions included under Section 3.1(b)(ii) occurred before or after the
Closing Date, except to the extent that any of the foregoing are Covered
Environmental Losses for which the Partnership Group is entitled to
indemnification from TMG under this Article III.

 

3.2          Limitations
Regarding Environmental Indemnification.  The aggregate liability of TMG in respect of
all Covered Environmental Losses under Section 3.1(a) shall not exceed $15.0
million.  TMG shall not have any
obligation under Section 3.1(a) until the Covered Environmental Losses of the
Partnership Group exceed $250,000, and then only to the extent such aggregate
Covered Environmental Losses exceed $250,000. 
Notwithstanding anything herein to the contrary, in no event shall TMG
have any indemnification obligations under Section 3.1(a) for claims made as a
result of additions to or modifications of Environmental Laws promulgated after
the Closing Date.

 

3.3          Right of
Way Indemnification.  TMG shall indemnify, defend and hold harmless
the Partnership Group from and against any losses, damages, liabilities,
claims, demands, causes of action, judgments, settlements, fines, penalties,
costs, and expenses (including, without limitation, court costs and reasonable
attorney’s and expert’s fees) of any and every kind or character, known or
unknown, fixed or contingent, suffered or incurred by the Partnership Group by
reason of or arising out of (a) the failure of the applicable Partnership Group
Member to be the owner of such valid and indefeasible easement rights or fee
ownership interests in and to the lands on which any refined products terminal,
pipeline or related equipment conveyed or contributed or otherwise Transferred
(including by way of a Transfer of the ownership interest of a Person or by
operation of law) to the applicable Partnership Group Member on the Closing
Date is located as of the Closing Date; (b) the failure of the applicable
Partnership Group Member to have the consents, licenses and permits necessary
to allow any such pipeline referred to in clause (a) of this Section 3.3 to
cross the roads, waterways, railroads

 

11

 

and other areas upon which any such pipeline
is located as of the Closing Date; and (c) the cost of curing any condition set
forth in clause (a) or (b) above that does not allow any Asset to be operated
in accordance with customary industry practice, to the extent that TMG is
notified in writing of any of the foregoing within five years after the Closing
Date.

 

3.4          Additional
Indemnification.

 

(a)           In addition to and not in limitation of the
indemnification provided under Sections 3.1(a) and 3.3, TMG shall indemnify,
defend, and hold harmless the Partnership Group from and against any losses,
damages, liabilities, claims, demands, causes of action, judgments,
settlements, fines, penalties, costs, and expenses (including, without
limitation, court costs and reasonable attorney’s and expert’s fees) of any and
every kind or character, known or unknown, fixed or contingent, suffered or
incurred by the Partnership Group by reason of or arising out of (i) all
currently pending legal actions against the TMG Entities, (ii) events and
conditions associated with the Retained Assets (including, without limitation,
the Option Assets unless and until purchased by a Partnership Group Member),
whether occurring before or after the Closing Date, and (iii) all federal,
state and local income tax liabilities attributable to the operation of the
Assets prior to the Closing Date, including any such income tax liabilities of
the TMG Entities that may result from the consummation of the formation transactions
for the Partnership Group and the General Partner.

 

(b)           In
addition to and not in limitation of the indemnification provided under Section
3.1(b) or the Partnership Agreement, the Partnership Group shall jointly and
severally indemnify, defend, and hold harmless the TMG Entities from and
against any losses, damages, liabilities, claims, demands, causes of action,
judgments, settlements, fines, penalties, costs, and expenses (including,
without limitation, court costs and reasonable attorney’s and expert’s fees) of
any and every kind or character, known or unknown, fixed or contingent,
suffered or incurred by the TMG Entities by reason of or arising out of events
and conditions associated with the operation of the Assets and occurring on or
after the Closing Date (other than Covered Environmental Losses, which are
provided for under Section 3.1), unless such indemnification would not be
permitted under the Partnership Agreement by reason of one of the provisos
contained in Section 7.7(a) of the Partnership Agreement.

 

3.5          Indemnification
Procedures.

 

(a)           The
Indemnified Party agrees that promptly after it becomes aware of facts giving
rise to a claim for indemnification under this Article III, it will
provide notice thereof in writing to the Indemnifying Party, specifying the
nature of and specific basis for such claim.

 

(b)           The
Indemnifying Party shall have the right to control all aspects of the defense
of (and any counterclaims with respect to) any claims brought against the
Indemnified Party that are covered by the indemnification under this Article
III, including, without limitation, the selection of counsel, determination of
whether to appeal any decision of any court and the settling of any such matter
or any issues relating

 

12

 

thereto; provided, however, that no such
settlement shall be entered into without the consent of the Indemnified Party
unless it includes a full release of the Indemnified Party from such matter or
issues, as the case may be, and does not include the admission of fault,
culpability or a failure to act, by or on behalf of such indemnified party.

 

(c)           The
Indemnified Party agrees to cooperate fully with the Indemnifying Party, with respect to all aspects of the defense
of any claims covered by the indemnification under this Article III, including,
without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice
relating thereto that the Indemnified Party may receive, permitting the name of
the Indemnified Party to be utilized in connection with such defense, the
making available to the Indemnifying
Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party
considers relevant to such defense and the making available to the Indemnifying Party of any
employees of the Indemnified Party; provided, however,
that in connection therewith the
Indemnifying Party agrees to use reasonable efforts to minimize the
impact thereof on the operations of the Indemnified Party and further agrees to
maintain the confidentiality of all files, records, and other information
furnished by the Indemnified Party pursuant to this Section 3.5.  In no event shall the obligation of the Indemnified
Party to cooperate with the Indemnifying
Party as set forth in the immediately preceding sentence be construed as
imposing upon the Indemnified Party an obligation to hire and pay for counsel
in connection with the defense of any claims covered by the indemnification set
forth in this Article III; provided, however,
that the Indemnified Party may, at its own option, cost and expense, hire and
pay for counsel in connection with any such defense.  The
Indemnifying Party agrees to keep any such counsel hired by the
Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the
right to retain sole control over such defense.

 

(d)           In
determining the amount of any loss, cost, damage or expense for which the
Indemnified Party is entitled to indemnification under this Agreement, the
gross amount of the indemnification will be reduced by (i) any insurance
proceeds realized by the Indemnified Party and (ii) all amounts recovered by
the Indemnified Party under contractual indemnities from third Persons.  For purposes of calculating the aggregate
liability of TMG under Section 3.1(a), TMG will be deemed to have incurred any
such liability when incurred or paid (and such liability shall be applied
toward the $15.0 million limitation on liability set forth in Section 3.2),
regardless of the status of any insurance claims in respect thereof, and such
liability (and the application thereof toward the $15.0 million limitation on
liability set forth in Section 3.2) will be reduced when any insurance proceeds
in respect thereof are actually received by TMG to the extent that TMG is not
required to pay such proceeds over to any of the Partnership Entities.

 

(e)           The
date on which notification of a claim for indemnification is received by the
Indemnifying Party shall determine whether such claim is timely made.

 

13

 

ARTICLE IV

Services

 

4.1          General.

 

(a)           During
the period commencing on the Closing Date and terminating on the earlier to
occur of the TMG Entities ceasing to control the General Partner or the third
anniversary of the Closing Date (subject to the extension provided in paragraph
(d) below, the “Applicable Period”), the Partnership shall pay TMG and its
Affiliates an administrative fee (the “Administrative Fee”) of $2.8 million per
year, payable in arrears in equal quarterly installments beginning on the first
fiscal quarter-end of the Partnership following the Closing Date (prorated to
account for any partial quarterly period), for the provision by TMG and its
Affiliates (including, without limitation, the General Partner) for the
Partnership Group’s benefit of certain corporate staff and support services
during the Applicable Period including, without limitation, the services listed
on Schedule I to this Agreement (the “Services”).  Notwithstanding the foregoing, the Services
shall not include any services that are outsourced by TMG and its Affiliates to
third parties; provided that, with respect to any such excluded service that
was utilized by TMG or its Affiliates during the twelve-month period preceding
the Closing Date, such excluded service was outsourced by TMG or its Affiliates
during such twelve-month period (it being understood that any such excluded
service not utilized during such twelve-month period shall be excluded from the
Services to the extent outsourced after the Closing Date).  The Services will be substantially identical
in nature and quality to the services of such type previously provided by TMG
and its Affiliates in connection with their management and operation of the Assets
during the one-year period prior to the Closing Date (to the extent the Assets
were managed and operated by TMG and its Affiliates during such periods).  During the Applicable Period, the Partnership
Group will satisfy all of its needs for Services through TMG and its Affiliates.  TMG may increase the Administrative Fee on
the first and second anniversary of the Closing Date by an amount up to the
product of the then-current Administrative Fee multiplied by the percentage increase,
if any, from the immediately preceding year in the Consumer Price Index — All
Urban Consumers, U.S. City Average, Not Seasonally Adjusted.  If the Partnership or any other Partnership
Group Member acquires or constructs additional assets during the Applicable
Period, then TMG shall propose a revised Administrative Fee covering the
provision of Services for such additional assets and that complies with the
terms and conditions of the Indenture. 
If the General Partner, on behalf of the Partnership Group and with the
concurrence of the Conflicts Committee, agrees to such revised Administrative
Fee, TMG and its Affiliates, as applicable, shall provide Services for the
additional assets pursuant to the terms set forth herein, and references herein
to the “Assets” shall thereafter include such additional assets.

 

(b)           During
the Applicable Period, the Partnership shall pay TMG and its Affiliates an
insurance reimbursement (the “Insurance Reimbursement”) of $1.0 million per
year, payable in equal quarterly installments, for insurance premiums with
respect to the initially-contributed Assets. 
TMG may increase the Insurance Reimbursement at any time in accordance
with increases in the premiums or fees payable under the applicable insurance
policies.  If the Partnership or any
other Partnership Group

 

14

 

Member acquires or constructs additional assets during the Applicable
Period, TMG shall propose a revised Insurance Reimbursement covering insurance
premiums for such additional assets.  If
the General Partner, on behalf of the Partnership Group and with the
concurrence of the Conflicts Committee, agrees to such revised Insurance
Reimbursement, TMG shall procure insurance coverage for the additional assets
pursuant to the terms set forth herein.

 

(c)           On
each anniversary of the Closing Date, the Partnership will have the right to
submit to TMG a proposal to reduce the amount of the Administrative Fee for
that year if the Partnership believes, in good faith, that the Services
performed by TMG and its Affiliates for the year in question do not justify
payment of the full Administrative Fee for that year.  If the Partnership submits such a proposal to
TMG, TMG agrees that it will negotiate in good faith with the Partnership to
determine if the Administrative Fee for that year should be reduced and, if so,
by how much, subject to the terms and conditions of the Indenture.

 

(d)           The
Applicable Period shall automatically renew for subsequent two-year periods,
cancelable on one year’s notice by either TMG or the Partnership.  Following the expiration of the Applicable
Period, the General Partner will determine the amount of corporate staff and
support expenses and insurance premium expenses that are properly allocable to
the Partnership Group in accordance with the terms of the Partnership
Agreement.

 

(e)           The
Administrative Fee shall not include and the Partnership Group shall reimburse TMG
and its Affiliates for:

 

(i)            wages
and salaries of employees of any TMG Entity, to the extent, but only to the
extent, such employees perform services for the Partnership Group on-site at
any Asset;

 

(ii)           the
cost of employee benefits relating to employees of any TMG Entity, such as
401(k), pension, and health insurance benefits, to the extent, but only to the
extent, such employees perform services for the Partnership Group on-site at
any Asset;

 

(iii)          out-of-pocket
costs and expenses incurred by TMG or its Affiliates on behalf of the
Partnership Group, including the incremental general and administrative
expenses of the Partnership’s becoming a public company, such as K-1
preparation, external audit, internal audit, transfer agent and registrar,
legal, printing, unitholder reports, and other costs and expenses; and

 

(iv)          all
sales, use, excise, value added or similar taxes, if any, that may be
applicable from time to time in respect of the Services.

 

15

 

ARTICLE V

Purchase Options

 

5.1          Option
to Purchase Certain Assets Retained by the TMG Entities.

 

(a)           Subject
to Section 5.1(d), TMG, on behalf of itself and the other TMG Entities, hereby
grants to the Partnership exclusive options to purchase all of the TMG Entities’
right, title and interest in, to and under certain of the refined product
terminals retained by the TMG Entities, consisting of the following assets (the
“Option Assets”):

 

(i)            the
TMG Entities’ terminal complex located in Brownsville, Texas (the “Brownsville
Option”);

 

(ii)           the
TMG Entities’ refined product terminals located at various points along the
Plantation and Colonial pipeline corridors, which extend from the Gulf Coast
through the Southeast and Mid-Atlantic regions (the “Pipeline Terminals Option”);
and

 

(iii)          the
TMG Entities’ refined product terminals located along the Mississippi and Ohio River
areas (the “River Terminals Option”, and together with the Brownsville Option
and the Pipeline Terminals Option, the “Options”).

 

The Option Assets subject to each Option are described in greater
detail on Schedule II hereto, and all references to such Option Assets in this
Agreement shall be deemed qualified by the descriptions thereof set forth on
such Schedule II.  Any tangible assets
received by a TMG Entity in an Asset Exchange Transaction in exchange for any
of the Option Assets described above will be subject to the Options described
in this Section 5.1.  For the avoidance
of doubt, the Option Assets do not include the TMG Entities’ (i) tug and barge
operations, (ii) supply, distribution and marketing businesses, (iii) proprietary
pipeline receipt and delivery system at the Port Everglades (North) and Port
Everglades (South) terminals, and (iv) refined product terminals located in
Rensselaer, New York and Chippewa Falls, Wisconsin.

 

(b)           The
Brownsville Option will be exercisable beginning on January 1, 2006 for a
period of one year.  The Pipeline
Terminals Option will be exercisable beginning on December 1, 2007 for a period
of one year.  The River Terminals Option
will be exercisable beginning on December 1, 2008 for a period of one year.

 

(c)           TMG
shall cause each other TMG Entity to comply with the terms of this Article V.

 

(d)           The
Parties acknowledge that any potential Transfer of the Option Assets pursuant
to this Article V shall be subject to and conditioned on obtaining any and all necessary
consents of TMG’s and its Affiliates’ shareholders, noteholders and other
securityholders, governmental authorities, lenders and other third parties.  If TMG believes in good faith that the
consent of holders of its Notes is required under the Indenture for the
Transfer of any Option Assets, then TMG will use commercially

 

16

 

reasonable efforts to obtain such consent.  If TMG is not successful in obtaining the
necessary consent of the holders of the Notes, then it will use commercially
reasonable efforts to redeem the Notes on terms set forth in the Indenture or
otherwise determined by TMG to be economical to TMG; provided, that TMG shall
have no obligation hereunder to pay any premium in connection with any such
redemption of the Notes.  If the exercise
of any of the Options is prevented or delayed due to TMG’s failure to obtain
the consent of the holders of, or to redeem, its Notes, then the exercise
period for each such affected Option shall be automatically extended until such
time as the exercise thereof will not be so prevented or delayed.

 

5.2          Procedures.

 

(a)           The
General Partner shall notify TMG in writing during each Option exercise period
that either (i) the General Partner has elected, with the approval of the
Conflicts Committee, not to cause a Partnership Group Member to exercise such
Option, in which case the TMG Entities may own, operate or Transfer the Option
Assets subject to the applicable Option without any further obligation to offer
such Option Assets to the Partnership (including pursuant to Article VI), or
(ii) the General Partner, with the approval of the Conflicts Committee, wishes to
cause a Partnership Group Member to exercise such Option, subject to the
negotiation of the terms of the exercise of such Option pursuant to the
provisions of Section 5.2(b).  If during
the applicable exercise period the General Partner notifies TMG that it wishes
to cause a Partnership Group Member to exercise such Option, within 45 days
after such notification TMG shall submit a term sheet (an “Option Term Sheet”)
to the General Partner containing the fundamental terms (other than purchase
price and in accordance with the requirements of the Indenture, if applicable)
on which it would be willing to sell (or to cause another TMG Entity to sell)
the applicable Option Assets, including any proposed commitments from the TMG
Entities, if any.

 

(b)           Within
45 days after delivery of the Option Term Sheet, the General Partner shall submit
to TMG, on behalf of the Partnership and with the concurrence of the Conflicts
Committee, the cash purchase price (the “Proposed Option Price”) it is willing
to cause a Partnership Group Member to pay for the applicable Option Assets and
that would satisfy the requirements of the Indenture, if applicable.  Thereafter, TMG and the Conflicts Committee
shall negotiate the terms of the purchase and sale in good faith for 60
days.  If TMG and the Conflicts Committee
are unable to agree on such terms during such 60-day period, TMG may attempt to
sell the applicable Option Assets to a person who is not an Affiliate of TMG
within six months of the termination of such 60-day period, provided that the purchase
price for such Option Assets may not be less than 105% of the Proposed Option
Price and otherwise shall be on terms that are not materially more favorable to
the proposed purchaser as the terms specified in the Option Term Sheet
submitted by TMG pursuant to Section 5.2(a) with respect to such Option Assets,
in each case as determined by written resolution of the Board of Directors of
TMG.  If no sale to a non-Affiliate
occurs within such six-month period, the General Partner shall have the right
(but not the obligation) to cause, on behalf of the Partnership and with the
concurrence of the Conflicts Committee, a Partnership Group Member to purchase
the applicable Option Assets at the Proposed Option Price

 

17

 

and otherwise upon the terms specified in the Option Term Sheet.  The General Partner shall notify TMG of its
intent to cause a Partnership Group Member to purchase the applicable Option
Assets at the Proposed Option Price within 45 days of the expiration of such
six-month period or such earlier date on which TMG notifies the General Partner
that it will no longer pursue a sale to a non-Affiliate.  If the General Partner either (A) fails to
respond within such 45-day period or (B) rejects the opportunity by written
notice of the General Partner, with the approval of the Conflicts Committee, to
TMG, then the TMG Entities may own, operate or Transfer the applicable Option
Assets without any further obligation to offer the applicable Option Assets to
the Partnership (including pursuant to Article VI).

 

(c)           If
requested by the General Partner, TMG shall use commercially reasonable efforts
to obtain financial statements with respect to any Option Assets purchased by a
Partnership Group Member as required under Regulation S-X promulgated by the
Securities and Exchange Commission or any successor statute.

 

ARTICLE VI

Rights of First Refusal

 

6.1          Rights of
First Refusal.

 

(a)           Subject
to Section 6.1(c), for so long as a TMG Entity controls the General Partner the
Partnership hereby grants to TMG a right of first refusal on any proposed Transfer
(other than a grant of a security interest to a bona fide third party
lender or a Transfer to another Partnership Group Member) of assets held by a
Partnership Group Member that are in the same line of business in which any TMG
Entity is then currently engaged; provided, that
TMG agrees to pay or to cause such other TMG Entity to pay no less than 105% of
the purchase price offered by a bona fide third party prospective acquiror (a “Proposed
Transferee”).  In addition, subject to
Section 6.1(c), the Partnership hereby grants to TMG a right of first refusal
with respect to any petroleum product tankage capacity that (i) is put into
commercial service after the Closing Date, (ii) was subject to the Terminaling and
Transportation Services Agreement prior to the termination or expiration
thereof or (iii) is subject to a contract which terminates or becomes
terminable by a Partnership Group Member after the Closing Date (excluding any
contract which is renewable solely at the option of the customer); provided, that TMG agrees to pay or to cause another TMG
Entity to pay no less than 105% of the fees offered by the Proposed Transferee.

 

(b)           Subject
to Section 6.1(c), for so long as a TMG Entity controls the General Partner TMG,
on behalf of itself and the other TMG Entities, hereby grants to the
Partnership a right of first refusal on any proposed Transfer (other than a
grant of a security interest to a bona fide third party lender, a Transfer
to another TMG Entity or a Transfer consummated pursuant to an Asset Exchange Transaction)
of (i) any Tangible Asset prior to the delivery of a Term Sheet related to such
Tangible Asset to the General Partner and (ii) any Option Asset prior to the
exercise period of the applicable Option with respect thereto; provided, in each case, that the Partnership agrees to pay
or to cause

 

18

 

another Partnership Group Member to pay no less than 105% of the
purchase price offered by a Proposed Transferee.

 

(c)           The
Parties acknowledge that any potential Transfer of assets pursuant to this
Article VI (such assets, the “ROFR Assets”) shall be subject to, conditioned on
and in compliance with the terms and conditions in the Indenture and obtaining
any and all necessary consents of equityholders, noteholders or other
securityholders, governmental authorities, lenders or other third parties.  Any tangible assets received by a TMG Entity
in an Asset Exchange Transaction in exchange for any of the ROFR Assets
described in paragraph (b) above will be subject to the provisions of this
Section 6.1.

 

6.2          Procedures.

 

(a)           If
a Partnership Group Member proposes to Transfer any ROFR Assets to a Proposed
Transferee (a “Partnership Acquisition Proposal”), then the General Partner
shall promptly give written notice (a “Partnership Disposition Notice”) thereof
to TMG.  The Partnership Disposition
Notice shall set forth the following information in respect of the proposed
Transfer:  (i) the name and address of
the Proposed Transferee, (ii) the ROFR Asset(s) subject to the Partnership
Acquisition Proposal, (iii) the
purchase price offered by such Proposed Transferee (the “Partnership Offer
Price”), (iv) reasonable detail concerning any non-cash portion of the proposed
consideration, if any, to allow TMG to reasonably determine the fair value of
such non-cash consideration, (v) the General Partner’s estimate of the fair
value of any non-cash consideration, and (vi) all other material terms and
conditions of the Partnership Acquisition Proposal that are then known to the General
Partner.  To the extent the Proposed
Transferee’s offer consists of consideration other than cash (or in addition to
cash), the Partnership Offer Price shall be deemed equal to the amount of any
such cash plus the fair value of such non-cash consideration.  If TMG determines that it wishes to, or
wishes to cause another TMG Entity to, purchase the applicable ROFR Assets on
the terms set forth in the Partnership Disposition Notice (subject to the
provisos set forth in Section 6.1(a), including without limitation the
requirement therein to pay 105% of the purchase price specified in the
Partnership Disposition Notice), it will deliver notice thereof to the General
Partner within 45 days after the General Partner’s delivery of the Partnership
Disposition Notice (the “TMG Acceptance Deadline”).  Failure to provide such notice within such
45-day period shall be deemed to constitute a decision not to purchase the
applicable ROFR Assets, and TMG shall be deemed to have waived its rights with
respect to such proposed disposition of the applicable ROFR Assets, but not
with respect to any future offer of such ROFR Assets.  If the Transfer by the Partnership Group
Member to the Proposed Transferee is not consummated in accordance with the
terms of the Partnership Acquisition Proposal within the later of
(A) 180 days after the TMG Acceptance Deadline, and
(B) 10 days after the satisfaction of all consent, governmental
approval or filing requirements, if any, the Partnership Acquisition Proposal
shall be deemed to lapse, and the Partnership Group Member may not Transfer any
of the ROFR Assets described in the Partnership Disposition Notice without
complying again with the provisions of this Article VI if and to the
extent then applicable.

 

19

 

(b)           If
a TMG Entity proposes to Transfer any ROFR Assets to a Proposed Transferee (a “TMG
Acquisition Proposal”), then TMG shall promptly give written notice (a “TMG Disposition Notice”)
thereof to the General Partner.  The TMG
Disposition Notice shall set forth the following information in respect of the
proposed Transfer:  (i) the name and
address of the Proposed Transferee, (ii) the ROFR Asset(s) subject to the TMG
Acquisition Proposal, (iii) the
purchase price offered by such Proposed Transferee (the “TMG Offer Price”), (iv)
proposed throughput arrangements, if any, (v) reasonable detail concerning any
non-cash portion of the proposed consideration, if any, to allow the General
Partner to reasonably determine the fair value of such non-cash consideration,
(vi) TMG’s estimate of the fair value of any non-cash consideration, and (vii)
all other material terms and conditions of the TMG Acquisition Proposal that
are then known to TMG.  To the extent the
Proposed Transferee’s offer consists of consideration other than cash (or in
addition to cash) the TMG Offer Price shall be deemed equal to the amount of
any such cash plus the fair value of such non-cash consideration.  No later than 45 days after TMG’s delivery of
the TMG Disposition Notice (the “Partnership Acceptance Deadline”), the General
Partner shall notify TMG in writing that either (i) the General Partner has
elected, with the approval of the Conflicts Committee, not to cause a
Partnership Group Member to purchase the applicable ROFR Assets on the terms
set forth in the TMG Disposition Notice (subject to the proviso set forth in
Section 6.1(b), including without limitation the requirement therein to pay
105% of the purchase price specified in the TMG Disposition Notice), in which
case the TMG Entities may own, operate or Transfer the applicable ROFR Assets
without any further obligation to offer such ROFR Assets to the Partnership,
other than any re-offer of the same ROFR Assets pursuant to the terms set forth
in this paragraph (b) below, or (ii) the General Partner has elected to cause a
Partnership Group Member to purchase the applicable ROFR Assets on the terms
set forth in the TMG Disposition Notice (subject to the proviso set forth in
Section 6.1(b), including without limitation the requirement therein to pay
105% of the purchase price specified in the TMG Disposition Notice).  If the Transfer by the TMG Entity to the
Proposed Transferee is not consummated in accordance with the terms of the TMG
Acquisition Proposal within the later of (A) 180 days after the
Partnership Acceptance Deadline, and (B) 10 days after the
satisfaction of all consent, governmental approval or filing requirements, if
any, the TMG Acquisition Proposal shall be deemed to lapse, and the TMG Entity
may not Transfer any of the ROFR Assets described in the TMG Disposition Notice
without complying again with the provisions of this Article VI if and to
the extent then applicable.

 

(c)           If
requested by the transferee Party, the transferor Party shall use commercially
reasonable efforts to obtain financial statements with respect to any ROFR
Assets Transferred pursuant to this Article VI as required under Regulation S-X
promulgated by the Securities and Exchange Commission or any successor statute.  TMG and the Partnership Group shall cooperate
in good faith in obtaining all necessary consents of equityholders, noteholders
or other securityholders, governmental authorities, lenders or other third
parties.

 

20

 

ARTICLE VII

Miscellaneous

 

7.1          Choice of
Law; Submission to Jurisdiction.  This Agreement shall be subject
to and governed by the laws of the State of Colorado, excluding any
conflicts-of-law rule or principle that might refer the construction or
interpretation of this Agreement to the laws of another state.  Each Party hereby submits to the jurisdiction
of the state and federal courts in the State of Colorado and to venue in Denver,
Colorado.

 

7.2          Notice. 
All notices or requests or consents provided for by, or permitted to be
given pursuant to, this Agreement must be in writing and must be given by
depositing same in the United States mail, addressed to the Person to be
notified, postpaid, and registered or certified with return receipt requested
or by delivering such notice in person or by telecopier or telegram to such
Party.  Notice given by personal delivery
or mail shall be effective upon actual receipt. 
Notice given by telegram or telecopier shall be effective upon actual
receipt if received during the recipient’s normal business hours or at the
beginning of the recipient’s next business day after receipt if not received
during the recipient’s normal business hours. 
All notices to be sent to a Party pursuant to this Agreement shall be
sent to or made at the address set forth below such Party’s signature to this
Agreement or at such other address as such Party may stipulate to the other
Parties in the manner provided in this Section 7.2.

 

if to the TMG Entities:

 

TransMontaigne
Inc.

1670 Broadway

Suite 3100

Denver, Colorado
80202

Attention:  President

Fax:  303-626-8228

 

if to the
Partnership Entities:

 

TransMontaigne
Partners L.P.

c/o TransMontaigne
GP L.L.C.

1670 Broadway

Suite 3100

Denver,
Colorado 80202

Attention:  President

Fax:  303-626-8228

 

7.3          Entire
Agreement.  This Agreement constitutes the entire
agreement of the Parties relating to the matters contained herein, superseding
all prior contracts or agreements, whether oral or written, relating to the
matters contained herein.

 

7.4          Termination. 
Notwithstanding any other provision of this Agreement, if the General
Partner is removed as general partner of the Partnership under circumstances
where

 

21

 

Cause does not exist and Units held by the
General Partner and its Affiliates are not voted in favor of such removal, this
Agreement, other than the provisions set forth in Article III hereof, may
immediately thereupon be terminated by TMG. 
The provisions of Article II of this Agreement will be terminated upon
a Change of Control of TMG.

 

7.5          Amendment
or Modification.  This Agreement may be amended or modified
from time to time only by the written agreement of all the Parties hereto;
provided, however, that the Partnership may not, without the prior approval of
the Conflicts Committee, agree to any amendment or modification of this
Agreement that the General Partner determines will adversely affect the holders
of Common Units.  Each such instrument
shall be reduced to writing and shall be designated on its face an “Amendment”
or an “Addendum” to this Agreement.

 

7.6          Assignment. 
No Party shall have the right to assign any of its rights or obligations
under this Agreement without the consent of the other Parties hereto.

 

7.7          Counterparts. 
This Agreement may be executed in any number of counterparts with the
same effect as if all signatory parties had signed the same document.  All counterparts shall be construed together
and shall constitute one and the same instrument.

 

7.8          Severability. 
If any provision of this Agreement shall be held invalid or
unenforceable by a court or regulatory body of competent jurisdiction, the
remainder of this Agreement shall remain in full force and effect.

 

7.9          Further
Assurances.  In connection with this Agreement and all
transactions contemplated by this Agreement, each signatory party hereto agrees
to execute and deliver such additional documents and instruments and to perform
such additional acts as may be necessary or appropriate to effectuate, carry
out and perform all of the terms, provisions and conditions of this Agreement
and all such transactions.

 

7.10        Rights of
Limited Partners.  The provisions of this Agreement are
enforceable solely by the Parties to this Agreement, and no Limited Partner of
the Partnership shall have the right, separate and apart from the Partnership,
to enforce any provision of this Agreement or to compel any Party to this
Agreement to comply with the terms of this Agreement.

 

22

 

IN WITNESS
WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Closing Date.

 

	
   

  	
  TRANSMONTAIGNE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Erik B. Carlson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Erik B. Carlson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE GP L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Erik B. Carlson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Erik B. Carlson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE PARTNERS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By TransMontaigne GP L.L.C.

  
	
   

  	
  Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Erik B. Carlson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Erik B. Carlson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  TRANSMONTAIGNE OPERATING GP L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Erik B. Carlson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Erik B. Carlson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

 

	
   

  	
  TRANSMONTAIGNE OPERATING

  COMPANY L.P.

  
	
   

  	
   

  
	
   

  	
  By TransMontaigne Operating GP L.L.C.

  
	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Randall J. Larson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Randall J. Larson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

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