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Exhibit 10.2  

 

 
 

CONTRIBUTION, CONVEYANCE
  AND ASSUMPTION AGREEMENT    
    

Among

TRANSMONTAIGNE
PARTNERS L.P., 

TRANSMONTAIGNE
GP L.L.C., 

TRANSMONTAIGNE
OPERATING COMPANY L.P., 

TRANSMONTAIGNE
OPERATING GP L.L.C., 

COASTAL
TERMINALS L.L.C., 

RAZORBACK
L.L.C., 

TPSI
TERMINALS L.L.C., 

TRANSMONTAIGNE INC.,

TRANSMONTAIGNE
PRODUCT SERVICES INC., 

TRANSMONTAIGNE
SERVICES INC., 

and 

COASTAL
FUELS MARKETING, INC. 

EFFECTIVE
AS OF 

MAY
27, 2005 

 

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT  

        THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of May 27, 2005, is entered into by and among TRANSMONTAIGNE
PARTNERS L.P., a Delaware limited partnership ("MLP"), TRANSMONTAIGNE GP L.L.C.,
a Delaware limited liability company ("GP"), TRANSMONTAIGNE OPERATING COMPANY L.P., a Delaware limited
partnership ("OLP"), TRANSMONTAIGNE OPERATING GP L.L.C., a Delaware limited liability company
("OLP GP"), COASTAL TERMINALS L.L.C., a Delaware limited liability company
("COASTAL TERMINALS"), RAZORBACK L.L.C., a Delaware limited liability company
("RAZORBACK"), TPSI TERMINALS L.L.C., a Delaware limited liability company
("TPSI TERMINALS"), TRANSMONTAIGNE INC., a Delaware corporation
("TMG"), TRANSMONTAIGNE PRODUCT SERVICES INC., a Delaware corporation
("TPSI"), TRANSMONTAIGNE SERVICES INC., a Delaware corporation
("TSI"), and COASTAL FUELS MARKETING, INC., a Delaware corporation
("COASTAL FUELS"). The parties to this agreement are collectively referred to herein as the "Parties."
Capitalized terms used herein shall have the meanings assigned to such terms in Section 1.1. 

RECITALS  

        A.    TPSI
and GP have formed MLP pursuant to the Delaware Revised Uniform Limited Partnership Act (the "Delaware Act"), for the
purpose of engaging in any business activity that is approved by GP and that lawfully may be conducted by a limited partnership organized pursuant to the Delaware Act. 

        B.    In
order to accomplish the objectives and purposes in the preceding recital, the following actions have been taken prior to the date hereof: 

        1.     TPSI
has formed GP, to which TPSI contributed $1,000 in exchange for all of the member interests in GP. 

        2.     TPSI
and GP have formed MLP, to which TPSI contributed $980 in exchange for a 98% limited partner interest in MLP, and GP contributed $20 in exchange for a 2% general
partner interest in MLP. 

        3.     MLP
has formed OLP GP, to which MLP contributed $500 in exchange for all of the member interests in OLP GP. 

        4.     MLP
and OLP GP have formed OLP, to which MLP contributed $499.95 in exchange for a 99.999% limited partner interest in MLP, and OLP GP contributed $.05 in exchange for a
0.001% general partner interest in OLP. 

        5.     Coastal
Fuels has formed Coastal Terminals, to which it contributed $1,000 in exchange for all of the member interests in Coastal Terminals. 

        6.     TPSI
has formed Razorback, to which it contributed $1,000 in exchange for all of the member interests in Razorback. 

        7.     TPSI
has formed TPSI Terminals, to which it contributed $1,000 in exchange for all of the member interests in TPSI Terminals. 

        8.     TPSI
has conveyed its member interests in GP to TSI in exchange for $20. 

        C.    Concurrently
with the consummation of the transactions contemplated hereby, each of the following matters shall occur: 

        1.     Coastal
Fuels will convey all of its right, title and interest in the Coastal Assets to Coastal Terminals as a capital contribution, in exchange for a continuation of
Coastal Fuels' 100% member interest in Coastal Terminals and the assumption by Coastal Terminals of the Coastal Liabilities. 

 

        2.     TPSI
will convey all of its right, title and interest in the Razorback Assets to Razorback as a capital contribution, in exchange for a continuation of TPSI's 100% member
interest in Razorback and the assumption by Razorback of the Razorback Liabilities. 

        3.     TPSI
will convey all of its right, title and interest in the TPSI Assets to TPSI Terminals as a capital contribution, in exchange for a continuation of TPSI's 100% member
interest in TPSI Terminals and the assumption by TPSI Terminals of the TPSI Liabilities. 

        4.     Coastal
Fuels will contribute 96.583% of its member interests in Coastal Terminals to MLP in exchange for (a) 502,500 Common Units, representing a 6.8% interest in
MLP units, (b) 626,333 Sub Units, representing an 8.4% interest in MLP units and (c) $91,266,000 in cash. 

        5.     TPSI
will contribute 96.583% of its member interests in each of Razorback and TPSI Terminals to MLP in exchange for (a) 2,245,933 Sub Units, representing a 30.2%
interest in MLP units and (b) $10,650,000 in cash. 

        6.     Coastal
Fuels will convey its remaining 3.417% member interest in Coastal Terminals to TPSI as a distribution. 

        7.     TPSI
will convey its 3.417% member interests in each of Coastal Terminals, Razorback and TPSI Terminals to TMG as a distribution. 

        8.     TMG
will convey its 3.417% member interests in each of Coastal Terminals, Razorback and TPSI Terminals to TSI as a capital contribution, in exchange for a continuation of
TMG's 100% ownership interest in TSI. 

        9.     TSI
will contribute a 1.525% member interest in each of Coastal Terminals, Razorback and TPSI Terminals to MLP in exchange for 120,000 Common Units, representing a 1.6%
interest in MLP units. 

        10.   TSI
will contribute its remaining 1.892% member interest in each of Coastal Terminals, Razorback and TPSI Terminals to GP as a capital contribution, in exchange for a
continuation of TSI's 100% member interest in GP. 

        11.   GP
will contribute its 1.892% member interest in each of Coastal Terminals, Razorback and TPSI Terminals to MLP in exchange for (a) a continuation of its 2%
general partner interest in MLP, represented by 148,873 General Partner Units and (b) the issuance of the IDRs. 

        12.   MSDW
will contribute $7,944,750 in cash to MLP in exchange for 450,000 Sub Units, representing a 6.0% interest in MLP units. 

        13.   The
public, through the Underwriters, will contribute $71,690,000 in cash to MLP, less the Underwriters' structuring fee and spread of $5,018,300, in exchange for
3,350,000 Common Units representing a 45.0% interest in MLP units. 

        14.   MLP
will borrow $31,500,000 under a new credit facility through OLP. 

        15.   MLP
will pay transaction expenses and deferred debt issuance expenses associated with the transactions contemplated by this Agreement in the amount of approximately
$3,200,000 (exclusive of the Underwriters' structuring fee and spread) and $1,000,000, respectively. 

        16.   MLP
will convey all of its member interests in Coastal Terminals, Razorback and TPSI Terminals to OLP as a capital contribution (99.999% for itself and 0.001% on behalf
of OLP GP). 

        17.   The
organizational documents of the Parties will be amended and restated as necessary to reflect the applicable matters set forth above and as contained in this
Agreement. 

2

 

        NOW,
THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the Parties undertake and agree as follows: 

ARTICLE 1

DEFINITIONS  

        Section 1.1 The following capitalized terms shall have the meanings given below. 

        (a)   "Agreement" shall mean this Contribution, Conveyance and Assumption Agreement. 

        (b)   "Assets" shall mean all right, title and interest of Coastal Fuels and TPSI in and to the properties and assets described
as such in Exhibit A attached hereto, whether tangible or intangible, whether real, personal or mixed, whether accrued or contingent, and wherever located. 

        (c)   "Coastal Assets" shall mean that portion of the Assets comprised of or relating to the five refined petroleum product
terminals owned by Coastal Fuels in Port Everglades (North), Florida; Jacksonville, Florida; Cape Canaveral, Florida; Port Manatee, Florida; and Fisher Island, Florida. 

        (d)   "Coastal Fuels" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (e)   "Coastal Liabilities" shall mean all liabilities arising out of or related to the ownership of the Coastal Assets to the
extent arising or accruing on and after the Effective Time, whether known or unknown, accrued or contingent, and whether or not reflected on the books and records of Coastal Fuels or its affiliates,
except the Excluded Liabilities. 

        (f)    "Coastal Terminals" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (g)   "Common Unit" has the meaning assigned to such term in the Partnership Agreement. 

        (h)   "Conveyance Documents" shall mean the documents attached hereto as Exhibit B from Coastal Fuels to Coastal
Terminals, from TPSI to Razorback, and from TPSI to TPSI Terminals, each dated the date of this Agreement. Coastal Fuels and TPSI may execute and deliver multiple Conveyance Documents as desirable to
expedite recording thereof in the various jurisdictions in which the Assets are located. 

        (i)    "Delaware Act" has the meaning assigned to such term in the recitals to this Agreement. 

        (j)    "Effective Time" shall mean 10:00 a.m. New York, New York time on May 27, 2005. 

        (k)   "Excluded Liabilities" shall mean the liabilities described as such in Exhibit A hereto. 

        (l)    "General Partner Unit" has the meaning assigned to such term in the Partnership Agreement. 

        (m)  "GP" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (n)   "IDRs" shall mean "Incentive Distribution Rights" as such term is defined in the Partnership Agreement. 

        (o)   "MLP" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (p)   "MSDW" means MSDW Bondbook Ventures Inc., a Delaware corporation. 

        (q)   "Offering" shall mean the initial public offering by MLP of Common Units. 

        (r)   "OLP" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (s)   "OLP GP" has the meaning assigned to such term in the opening paragraph of this Agreement. 

3

 

        (t)    "Parties" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (u)   "Partnership Agreement" shall mean the First Amended and Restated Agreement of Limited Partnership of TransMontaigne
Partners L.P. dated as of May 27, 2005. 

        (v)   "Razorback" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (w)  "Razorback Assets" shall mean that portion of the Assets comprised of or relating to the refined petroleum product
pipeline owned by TPSI and the connected refined petroleum product terminals located in Mt. Vernon, Missouri and Rogers, Arkansas. 

        (x)   "Razorback Liabilities" shall mean all liabilities arising out of or related to the ownership of the Razorback Assets to
the extent arising or accruing on and after the Effective Time, whether known or unknown, accrued or contingent, and whether or not reflected on the books and records of TPSI or its affiliates, except
the Excluded Liabilities. 

        (y)   "Sub Unit" shall mean "Subordinated Unit" as such term is defined in the Partnership Agreement. 

        (z)   "TMG" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (aa) "TPSI" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (bb) "TPSI Assets" shall mean that portion of the Assets comprised of or relating to the two refined petroleum product
terminals owned by TPSI located in Port Everglades (South), Florida and Tampa, Florida. 

        (cc) "TPSI Liabilities" shall mean all liabilities arising out of or related to the ownership of the TPSI Assets to the
extent arising or accruing on and after the Effective Time, whether known or unknown, accrued or contingent, and whether or not reflected on the books and records of TPSI or its affiliates, except the
Excluded Liabilities. 

        (dd) "TPSI Terminals" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (ee) "TSI" has the meaning assigned to such term in the opening paragraph of this Agreement. 

        (ff)  "Underwriters" shall mean UBS Securities LLC, Citigroup Global Markets Inc., A.G. Edwards &
Sons, Inc., and Wachovia Capital Markets, LLC. 

ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS  

        Section 2.1 Contribution of Coastal Assets by Coastal Fuels to Coastal Terminals. Coastal Fuels hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Coastal Terminals, its
successors and assigns, for its and their own use forever, all of its right, title and interest in and to the Coastal Assets, as a capital contribution, in exchange for (a) a continuation of
its 100% member interest in Coastal Terminals, (b) the assumption by Coastal Terminals of the Coastal Liabilities as provided in Section 3.1 hereof, and (c) other good and
valuable consideration, the sufficiency of which is hereby acknowledged, and Coastal Terminals hereby accepts such Coastal Assets as a contribution to the capital of Coastal Terminals. To further
evidence this conveyance with respect to the real property included in the Coastal Assets, Coastal Fuels will execute and deliver the Conveyance Documents to Coastal Terminals. 

TO
HAVE AND TO HOLD the Coastal Assets unto Coastal Terminals, its successors and assigns, together with all and singular the rights and appurtenances thereto in any way belonging, subject, however,
to the terms and conditions stated in this Agreement, forever. 

4

 

        Section 2.2
Contribution of Razorback Assets by TPSI to Razorback. TPSI hereby grants, contributes, bargains, conveys, assigns,
transfers, sets over and delivers to Razorback, its successors and assigns, for its and their own use forever, all of its right, title and interest in and to the Razorback Assets, as a capital
contribution, in exchange for (a) a continuation of its 100% member interest in Razorback, (d) the assumption by Razorback of the Razorback Liabilities as provided in Section 3.2
hereof, and (c) other good and valuable consideration, the sufficiency of which is hereby acknowledged, and Razorback hereby accepts such Razorback Assets as a contribution to the capital of
Razorback. To further evidence this conveyance with respect to the real property included in the Razorback Assets, TPSI will execute and deliver the Conveyance Documents to Razorback. 

TO
HAVE AND TO HOLD the Razorback Assets unto Razorback, its successors and assigns, together with all and singular the rights and appurtenances thereto in any way belonging, subject, however, to the
terms and conditions stated in this Agreement, forever. 

        Section 2.3  Contribution of TPSI Assets by TPSI to TPSI Terminals. TPSI hereby grants, contributes, bargains, conveys, assigns,

transfers, sets over and delivers to TPSI Terminals, its successors and assigns, for its and their own use forever, all of its right, title and interest in and to the TPSI Assets, as a capital
contribution, in exchange for (a) a continuation of its 100% member interest in TPSI Terminals, (f) the assumption by TPSI Terminals of the TPSI Liabilities as provided in
Section 3.3 hereof, and (c) other good and valuable consideration, the sufficiency of which is hereby acknowledged, and TPSI Terminals hereby accepts such TPSI Assets as a contribution
to the capital of TPSI Terminals. To further evidence this conveyance with respect to the real property included in the TPSI Assets, TPSI will execute and deliver the Conveyance Documents to TPSI
Terminals. 

TO
HAVE AND TO HOLD the TPSI Assets unto TPSI Terminals, its successors and assigns, together with all and singular the rights and appurtenances thereto in any way belonging, subject, however, to the
terms and conditions stated in this Agreement, forever. 

        Section 2.4
Contribution of Member Interest in Coastal Terminals by Coastal Fuels to MLP. Coastal Fuels hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns, for its and their own use forever, a 96.583% member interest in Coastal Terminals, as a capital
contribution, in exchange for (a) 502,500 Common Units, representing a 6.8% interest in MLP units, (b) 626,333 Sub Units, representing an 8.4% interest in MLP units,
(c) $91,266,000 in cash and (d) other good and valuable consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts such member interests in Coastal Terminals
as a contribution to the capital of MLP. 

        Section 2.5
Contribution of Member Interest in Razorback and TPSI Terminals by TPSI to MLP. TPSI hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns, for its and their own use forever, a 96.583% member interest in each of Razorback and TPSI Terminals,
as a capital contribution, in exchange for (a) 2,245,933 Sub Units, representing a 30.2% interest in MLP units, (b) $10,650,000 in cash and (c) other good and valuable
consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts such member interests in Razorback and TPSI Terminals as a contribution to the capital of MLP. 

        Section 2.6
Distribution of Member Interests in Coastal Terminals by Coastal Fuels to TPSI. Coastal Fuels hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to TPSI, its successors and assigns, for its and their own use forever, a 3.417% member interest in Coastal Terminals, as a
distribution. 

        Section 2.7  Distribution of Member Interests in Coastal Terminals, Razorback and TPSI Terminals by TPSI to TMG. TPSI hereby
grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to TMG, its successors and assigns, for its and their own use forever, a 3.417% member interest in each of Coastal Terminals,
Razorback and TPSI Terminals, as a distribution. 

5

 

        Section 2.8  Contribution of Member Interests in Coastal Terminals, Razorback and TPSI Terminals by TMG to TSI. TMG hereby
grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to TSI, its successors and assigns, for its and their own use forever, a 3.417% member interest in each of Coastal Terminals,
Razorback and TPSI Terminals, as a capital contribution, in exchange for (a) a continuation of its 100% ownership interest in TSI, and (b) other good and valuable consideration, the
sufficiency of which is hereby acknowledged, and TSI hereby accepts such member interests as a contribution to the capital of TSI. 

        Section 2.9  Contribution of Member Interests in Coastal Terminals, Razorback and TPSI Terminals by TSI to MLP. TSI hereby
grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns, for its and their own use forever, a 1.525% member interest in each of Coastal Terminals,
Razorback and TPSI Terminals, as a capital contribution, in exchange for (a) 120,000 Common Units, representing a 1.6% interest in MLP units and (b) other good and valuable
consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts such member interests. 

        Section 2.10  Contribution of Member Interests in Coastal Terminals, Razorback and TPSI Terminals by TSI to GP. TSI hereby
grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to GP, its successors and assigns, for its and their own use forever, a 1.892% member interest in each of Coastal Terminals,
Razorback and TPSI Terminals, as a capital contribution, in exchange for (a) a continuation of its 100% member interest in GP and (b) other good and valuable consideration, the
sufficiency of which is hereby acknowledged, and GP hereby accepts such member interests as a contribution to the capital of GP. The Parties acknowledge that the member interests so contributed have
an aggregate value approximately equal to 2% of the value of MLP after the closing of the transactions contemplated by this Agreement. 

        Section 2.11  Contribution of Member Interests in Coastal Terminals, Razorback and TPSI Terminals by GP to MLP. GP hereby
grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns, for its and their own use forever, a 1.892% member interest in each of Coastal Terminals,
Razorback and TPSI Terminals, as a capital contribution, in exchange for (a) a continuation of its 2% general partner interest in MLP, represented by 148,873 General Partner Units,
(h) the issuance of the IDRs, and (c) other good and valuable consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts the member interests as a
contribution to the capital of MLP. 

        Section 2.12  MSDW Contribution. The Parties acknowledge a capital contribution by MSDW to MLP of $7,944,750 in cash in
exchange for
450,000 Sub Units, representing a 6.0% interest in MLP units. 

        Section 2.13
Public Cash Contribution. The Parties acknowledge a capital contribution by the public through the Underwriters to MLP
of $71,690,000 in cash ($66,671,700 net to MLP after the Underwriters' spread of $5,018,300) in exchange for 3,350,000 Common Units, representing a 45.0% interest in MLP units. 

        Section 2.14  Incurrence of Indebtedness. The Parties acknowledge the borrowing by MLP, through OLP, in connection the with the
transactions contemplated hereby, of $31,500,000 under a new credit facility. 

        Section 2.15
Payment of Transaction Costs by MLP. The Parties acknowledge the payment by MLP, in connection with the transactions
contemplated hereby, of transaction expenses and deferred debt
issuance costs in the amount of approximately $3,200,000 (exclusive of the Underwriters' structuring fees and spread) and $1,000,000, respectively. 

        Section 2.16  Contribution of Coastal Terminals, Razorback and TPSI Terminals by MLP to OLP. MLP hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to OLP, its 

6

 

successors
and assigns, for its and their own use forever, its 100% member interests in Coastal Terminals, Razorback and TPSI Terminals, as a capital contribution (99.999% for itself and 0.001% on
behalf of OLP GP), in exchange for (a) a continuation of its 99.999% limited partner interest in OLP and OLP GP's 0.001% general partner interest in OLP GP, and (j) other good and
valuable consideration, the sufficiency of which is hereby acknowledged, and OLP hereby accepts such member interests in Coastal Terminals, Razorback and TPSI Terminals as a contribution to the
capital of OLP. 

        Section 2.17
Exercise of the Over-Allotment Option. The Parties acknowledge that in the event the Underwriters exercise
their over-allotment option, MLP shall use any net proceeds therefrom to redeem from Coastal Fuels a number of Common Units held by Coastal Fuels equal to the number of Common Units issued
upon exercise of the over-allotment option, at a price per Common Unit equal to the net proceeds per Common Unit received by MLP after underwriting discounts and commissions but before
other expenses. 

ARTICLE 3

ASSUMPTION OF CERTAIN LIABILITIES  

        Section 3.1 Assumption of Coastal Liabilities by Coastal Terminals. In connection with Coastal Fuels'
contribution and transfer of the Coastal Assets to Coastal Terminals, Coastal Terminals hereby assumes and agrees to duly and timely pay, perform and discharge the Coastal Liabilities, to the full
extent that Coastal Fuels has been heretofore or would have been in the future, were it not for the execution and delivery of this Agreement, obligated to pay, perform and discharge the Coastal
Liabilities; provided, however, that said assumption and agreement to duly and timely pay, perform and discharge the Coastal Liabilities shall not increase the obligation of Coastal Terminals with
respect to the Coastal Liabilities beyond that of Coastal Fuels, waive any valid defense that was available to Coastal Fuels with respect to any Coastal Liabilities or enlarge the rights or remedies
of any third party, if any, under any of the Coastal Liabilities. This assumption shall inure to the benefit of Coastal Fuels, its shareholders, officers, directors, employees and agents. 

        Section 3.2
Assumption of Razorback Liabilities by Razorback. In connection with TPSI's contribution and transfer of the Razorback
Assets to Razorback, Razorback hereby assumes and agrees to duly and timely pay, perform and discharge the Razorback Liabilities, to the full extent that TPSI has been heretofore or would have been in
the future, were it not for the execution and delivery of this Agreement, obligated to pay, perform and discharge the Razorback Liabilities; provided, however, that
said assumption and agreement to duly and timely pay, perform and discharge the Razorback Liabilities shall not increase the obligation of Razorback with respect to the Razorback Liabilities beyond
that of TPSI, waive any valid defense that was available to TPSI with respect to any Razorback Liabilities or enlarge the rights or remedies of any third party, if any, under any of the Razorback
Liabilities. This assumption shall inure to the benefit of TPSI, its shareholders, officers, directors, employees and agents. 

        Section 3.3  Assumption of TPSI Liabilities by TPSI Terminals. In connection with TPSI's contribution and transfer of the TPSI
Assets to TPSI Terminals, TPSI Terminals hereby assumes and agrees to duly and timely pay, perform and discharge the TPSI Liabilities, to the full extent that TPSI has been heretofore or would have
been in the future, were it not for the execution and delivery of this Agreement, obligated to pay, perform and discharge the TPSI Liabilities; provided, however, that said assumption and agreement to
duly and timely pay, perform and discharge the TPSI Liabilities shall not increase the obligation of TPSI Terminals with respect to the TPSI Liabilities beyond that of TPSI, waive any valid defense
that was available to TPSI with respect to any TPSI Liabilities or enlarge the rights or remedies of any third party, if any, under any of the TPSI Liabilities. This assumption shall inure to the
benefit of TPSI, its shareholders, officers, directors, employees and agents. 

7

 

ARTICLE 4

TITLE MATTERS  

        Section 4.1 Encumbrances.

        (a)   The
contribution and conveyance (by operation of law or otherwise) of the Assets as reflected in this Agreement are made expressly subject to all recorded and unrecorded
liens, encumbrances, agreements, defects, restrictions, adverse claims and all laws, rules, regulations, ordinances, judgments and orders of governmental authorities or tribunals having or asserting
jurisdiction over the Assets and operations conducted thereon or in connection therewith, in each case to the extent the same are valid, enforceable and affect the Assets, including all matters that a
current survey or visual inspection of the Assets would reflect. 

        (b)   To
the extent that certain jurisdictions in which the Assets are located may require that documents be recorded in order to evidence the transfers of title reflected in
this Agreement, then the provisions set forth in Section 4.1(a) immediately above shall also be applicable to the conveyances under such documents. 

        Section 4.2
Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

        (a)   THE
PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE,
NATURE, QUALITY OR CONDITION OF THE ASSETS, INCLUDING THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL CONDITION OF THE ASSETS GENERALLY OR THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON
THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF THE ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE
OF OR BY THE ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING ANY ZONING, ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE ASSETS. THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO INSPECT THE
RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE RESPECTIVE ASSETS AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES. NONE OF THE PARTIES IS
LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE ASSETS FURNISHED BY ANY AGENT, EMPLOYEE, REPRESENTATIVE, SERVANT OR THIRD PARTY.
EACH OF THE PARTIES ACKNOWLEDGES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR HEREIN IS MADE IN AN "AS IS", "WHERE IS" CONDITION WITH ALL FAULTS, AND THE
ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE
PROVISIONS OF THIS SECTION HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS,
IMPLIED OR STATUTORY, WITH RESPECT TO THE ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE. 

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        (b)   The
contributions of the Assets made under this Agreement are made with full rights of substitution and subrogation of the respective Parties receiving such
contributions, and all persons claiming by, through and under such Parties, to the extent assignable, in and to all covenants and warranties by the predecessors-in-title of the
Parties contributing the Assets, and with full subrogation of all rights accruing under applicable statutes of limitation and all rights of action of warranty against all former owners of the Assets. 

        (c)   Each
of the Parties agrees that the disclaimers contained in this Section 4.2 are "conspicuous" disclaimers. Any covenants implied by statute or law by the use of
the words "grant," "contribute," "bargain," "convey," "assign," "transfer," or "deliver" or any of them or any other words used in this Agreement or any exhibits hereto are hereby expressly
disclaimed, waived or negated. 

        (d)   Each
of the Parties hereby waives compliance with any applicable bulk sales law or any similar law in any applicable jurisdiction in respect of the transactions
contemplated by this Agreement. 

ARTICLE 5

FURTHER ASSURANCES  

        From time to time after the Effective Time, and without any further consideration, the Parties agree to execute, acknowledge and deliver all such additional
deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and will do all such other acts and things, all in accordance with applicable law, as
may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by
this Agreement, or which are intended to be so granted, or (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record
title to the interests contributed and assigned by this Agreement or intended so to be and to more fully and effectively carry out the purposes and intent of this Agreement. 

ARTICLE 6

EFFECTIVE TIME  

        Notwithstanding anything contained in this Agreement to the contrary, none of the provisions of Article 2 or Article 3 of this Agreement shall be
operative or have any effect until the Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement shall be effective and operative in accordance with
Article 7, without further action by any Party. 

ARTICLE 7

MISCELLANEOUS  

        Section 7.1 Order of Completion of Transactions. The transactions provided for in Article 2 of this
Agreement shall be completed immediately following the Effective Time in the order set forth in Article 2. The transactions provided for in Article 3 of this Agreement shall be completed
simultaneously with the transactions provided for in Article 2 of this Agreement. 

        Section 7.2  Costs. Except for the transaction costs set forth in Section 2.11, OLP shall pay all expenses, fees and costs,

including all sales, use and similar taxes arising out of the contributions, conveyances and deliveries to be made hereunder, and shall pay all documentary, filing, recording, transfer, deed and
conveyance taxes and fees required in connection therewith. In addition, OLP shall be responsible for all costs, liabilities and expenses (including court costs and reasonable attorneys' fees)
incurred in connection with the implementation of any conveyance or delivery pursuant to Article 5 of this Agreement. 

9

 

        Section 7.3
Headings; References; Interpretation. All Article and Section headings in this Agreement are for convenience only and
shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words "hereof," "herein" and "hereunder" and words of similar import, when used in this
Agreement, shall refer to this Agreement as a whole, including all Exhibits attached hereto, and not to any particular provision of this Agreement. All references herein to Articles, Sections and
Exhibits shall, unless the context requires a different construction, be deemed to be references to the Articles and Sections of this Agreement and the Exhibits attached hereto, and all such Exhibits
attached hereto are hereby incorporated herein and made a part hereof for all purposes. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders, and the singular shall include the plural and vice versa. The terms "include", "includes", "including" or words of like import shall be deemed to be followed by the words
"without limitation". 

        Section 7.4
Successors and Assigns. The Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and assigns. 

        Section 7.5  No Third Party Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are
not
intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies and no person is or is intended to be a third party beneficiary of any of the
provisions of this Agreement. 

        Section 7.6
Counterparts. This Agreement may be executed in any number of counterparts, all of which together shall constitute one
agreement binding on the parties hereto. 

        Section 7.7  Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of
Colorado
applicable to contracts made and to be performed wholly within such state without giving effect to conflict of law principles thereof. 

        Section 7.8
Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene,
or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this
Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give
effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement. 

        Section 7.9
Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of
all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. 

        Section 7.10
Integration. This Agreement and the instruments referenced herein supersede all previous understandings or agreements
among the Parties, whether oral or written, with respect to their subject matter. This document and such instruments contain the entire understanding of the Parties with respect to the subject matter
hereof and thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is contained in
a written amendment hereto executed by the parties hereto after the date of this Agreement. 

        Section 7.11
Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable law, this Agreement shall also
constitute a "deed," "bill of sale" or "assignment" of the assets and interests referenced herein. 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

10

 

        IN
WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date first above written. 

	

 	
 	
TRANSMONTAIGNE PARTNERS L.P.
	
 	
 	

By:	
 	

TransMontaigne GP L.L.C., its general partner
	

 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
TRANSMONTAIGNE GP L.L.C.
	
 	
 	

/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
	

 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
TRANSMONTAIGNE OPERATING GP L.L.C.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
COASTAL TERMINALS L.L.C.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	 	 	 	 	 

11

 

	

 	
 	
RAZORBACK L.L.C.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
TPSI TERMINALS L.L.C.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
TRANSMONTAIGNE INC.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
TRANSMONTAIGNE PRODUCT SERVICES INC.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
TRANSMONTAIGNE SERVICES INC.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President
	

 	
 	
COASTAL FUELS MARKETING, INC.
	
 	
 	

/s/  ERIK B. CARLSON      
 Name: Erik B. Carlson

Title: Senior Vice President

12

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Exhibit 10.5  

 
 

TRANSMONTAIGNE SERVICES INC.
  LONG-TERM INCENTIVE PLAN    
    

        1.     Plan. The TransMontaigne Services Inc. Long-Term Incentive Plan (the "Plan") was adopted by
TransMontaigne Services Inc. (the "Company") to reward certain employees, consultants and directors of the Company and the Company's Affiliates who perform services for TransMontaigne Partners
L.P. (the "Partnership") or its Affiliates by enabling them to acquire Units of the Partnership and/or through the provision of cash payments. 

        2.     Objectives. This Plan is designed to enhance the ability of the Company and its Affiliates to attract and retain
employees, directors and consultants whose services are key to the growth and profitability of the Partnership and its Affiliates, to encourage the sense of proprietorship among such persons and to
stimulate the active interest of such persons in the development and financial success of the Partnership and its Affiliates. These objectives are to be accomplished by making Awards under this Plan
and thereby providing Participants with a proprietary interest in the growth and performance of the Partnership. 

        3.     Definitions. As used herein, the terms set forth below shall have the following respective meanings: 

        "Affiliate"
means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with,
the Person in question. As used herein, the term "control" means the possession, direct or indirect, 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. 

        "Award"
means the grant of any Option, Unit Appreciation Right, Restricted Unit or Phantom Unit, whether granted singly, in combination or in tandem, to a Participant pursuant to such
applicable
terms, conditions and limitations as the Committee may establish in order to fulfill the objectives of the Plan. 

        "Award
Agreement" means any written agreement between the Company and a Participant setting forth the terms, conditions and limitations applicable to an Award. 

        "Board"
means the Board of Directors of the General Partner. 

        "Code"
means the Internal Revenue Code of 1986, as amended from time to time. 

        "Committee"
means the Board, the Compensation Committee of the Board or such other committee of the Board as is designated by the Board to administer the Plan. 

        "Company"
means TransMontaigne Services Inc. 

        "Consultant"
means an individual, other than an Employee or a Non-Employee Director, providing bona fide services to the Partnership, the Company or any of their Affiliates
as a consultant or advisor, as applicable, provided that such individual is a natural person and that such services are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for any securities of the Partnership. 

        "Distribution
Equivalents" means a contingent right, granted in tandem with a specific Phantom Unit, to receive an amount in cash equal to the cash distributions made by the Partnership
with respect to a Unit during the Restriction Period applicable to the Phantom Unit. 

        "Employee"
means an employee of the General Partner, the Company, the Partnership or any of their Affiliates who performs services for the Company or for the Partnership and its
Affiliates. 

        "Fair
Market Value" means, as of any date and in respect of any Units, the closing sales price of a Unit on the applicable date (or, if there is no trading in the Units on such date, the
closing sales price 

 

on
the last date the Units were traded) as reported in The Wall Street Journal (or other reporting service approved by the Committee). In the event Units are not publicly traded at the time a
determination of Fair Market Value is required to be made hereunder, the determination of Fair Market Value shall be made in good faith by the Committee. 

        "General
Partner" means TransMontaigne GP L.L.C. 

        "Non-Employee
Director" means an individual, other than an Employee or Consultant, serving as a member of the Board of Directors of the General Partner or the Company. 

        "Option"
means a right to purchase a specified number of Units at a specified price. 

        "Participant"
means an Employee, Consultant or Non-Employee Director to whom an Award has been made under this Plan. 

        "Partnership"
means TransMontaigne Partners L.P. 

        "Person"
means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, governmental agency or political
subdivision thereof or other entity. 

        "Phantom
Unit" means a phantom (notional) unit granted under the Plan which upon vesting entitles the Participant to receive a Unit or, subject to compliance with Section 17, an
amount of cash equal to the Fair Market Value of a Unit, whichever is determined by the Committee. 

        "Restricted
Unit" means any Unit that is subject to such restrictions or forfeiture provisions as are established by the Committee. 

        "Restriction
Period" means a period of time established by the Committee during which an Award remains subject to forfeiture or is not exercisable by the Participant. 

        "Unit"
means a common unit of the Partnership. 

        "Unit
Appreciation Right" means a right to receive a payment, in Units, cash or a combination thereof as determined by the Committee, equal to the excess of the Fair Market Value or
other specified valuation of a specified number of Units on the date the right is exercised over a specified strike price, in each case, as determined by the Committee. 

        4.     Participation. Individuals eligible to participate and receive Awards under the Plan are those Employees, Consultants and
Non-Employee Directors selected by the Committee in its discretion. 

        5.     Units Available for Awards. Subject to the provisions of paragraph 14 hereof, initially there shall be available
for Awards under this Plan, granted wholly or partly in Units (including rights or options that may be exercised for or settled in Units), 200,000 Units, which amount shall automatically increase on
January 1 of each calendar year by two percent of the total number of common and subordinated units of the Partnership outstanding at the end of the Partnership's preceding fiscal year. Any
Units delivered pursuant to an Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate, the Company, the Partnership or any other Person, or any combination
of the foregoing, as determined by the Committee in its discretion. The number of Units that are the subject of Awards under this Plan, that are cancelled, forfeited, terminated or expire unexercised,
shall again immediately become available for Awards hereunder. The number of Units reserved for issuance under the Plan shall be reduced only to the extent that Units are actually issued in connection
with the exercise or settlement of an Award. The Committee may from time to time adopt and observe such procedures concerning the counting of Units against the Plan maximum as it may deem appropriate.
The Board and the appropriate officers of the General Partner shall from time to time take whatever actions are necessary to file any required documents with governmental 

2

 

authorities,
stock exchanges and transaction reporting systems to ensure that Units are available for issuance pursuant to Awards. 

        6.     Administration

        (a)   Authority of the Committee. Subject to the provisions hereof, the Committee shall have full and exclusive power and
authority to administer this Plan and to take all actions that are specifically contemplated hereby or are necessary or appropriate in connection with the administration hereof. The Committee shall
also have full and exclusive power to interpret this Plan and to adopt such rules, regulations and guidelines for carrying out this Plan as it may deem necessary or proper, all of which powers shall
be exercised in the best interests of the General Partner, the Company and the Partnership and in keeping with the objectives of this Plan. The Committee may, in its discretion,
provide for the extension of the exercisability of an Award, accelerate the vesting or exercisability of an Award, eliminate or make less restrictive any restrictions contained in an Award, waive any
restriction or other provision of this Plan or an Award or otherwise amend or modify an Award in any manner that is (i) not adverse to the Participant to whom such Award was granted,
(ii) consented to by such Participant or (iii) authorized by paragraph 14(c) hereof; provided, however, that no such action shall permit the term of any Option to be greater than
ten years from the applicable grant date. The Committee may correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent
the Committee deems necessary or desirable to further the Plan purposes. Any decision of the Committee in the interpretation and administration of this Plan shall lie within its sole and absolute
discretion and shall be final, conclusive and binding on all parties concerned. 

        (b)   Indemnity. No member of the Committee or officer of the General Partner to whom the Committee has delegated authority in
accordance with the provisions of paragraph 7 of this Plan shall be liable for anything done or omitted to be done by him or her, by any member of the Committee or by any officer of the General
Partner in connection with the performance of any duties under this Plan, except for his or her own willful misconduct or as expressly provided by statute. 

        7.     Delegation of Authority. The Committee may delegate to the Chief Executive Officer and to other senior officers of the
General Partner its duties under this Plan pursuant to such conditions or limitations as the Committee may establish; provided, however, that the Chief Executive Officer may not grant Awards to, or
take any action with respect to any Award previously granted to, himself, a person who is an officer subject to Rule 16b-3 of the Exchange Act, or a member of the Board. 

        8.     Awards. The Committee shall determine the type or types of Awards to be made under this Plan and shall designate from time
to time the Participants who are to be the recipients of such Awards. Each Award shall be embodied in an Award Agreement, which shall contain such terms, conditions and limitations as shall be
determined by the Committee in its sole discretion. Awards may consist of those listed in this paragraph 8 and may be granted singly, in combination or in tandem. Awards may also be made in
combination or in tandem with, in replacement of, or as alternatives to, grants or rights under this Plan or any other plan of the Partnership, the Company or any of their Affiliates, including the
plan of any acquired entity; provided that, except as contemplated in paragraph 14 hereof, no Option may be issued in exchange for the cancellation of an Option with a higher exercise price nor
may the exercise price of any Option be reduced. All or part of an Award may be subject to conditions established by the Committee, which may include, but are not limited to, continuous service with
the Partnership, the Company and/or their Affiliates, achievement of specific business objectives, increases in specified indices, attainment of specified growth rates and other comparable
measurements of performance. Upon the termination of employment by a Participant who is an Employee or upon the termination of service by a Participant who is a Consultant or a 

3

 

Non-Employee
Director, any unexercised, deferred, unvested or unpaid Awards shall be treated as set forth in the applicable Award Agreement. 

        (a)   Options. An Award may be in the form of an Option. The price at which Units may be purchased upon the exercise of an
Option shall be not less than the Fair Market Value of the Units on the date of grant. The term of an Option shall not exceed ten years from the date of grant. Subject to the foregoing
provisions, the terms, conditions and limitations applicable to any Options awarded pursuant to this Plan, including the term of any Options and the date or dates upon which they become exercisable,
shall be determined by the Committee. 

        (b)   Unit Appreciation Rights. An Award may be in the form of a Unit Appreciation Right. The strike price for a Unit
Appreciation Right shall not be less than the Fair Market Value of the Units on the date on which the Unit Appreciation Right is granted. The term of a Unit Appreciation Right shall not exceed
ten years from the date of grant. Subject to the foregoing limitations, the terms, conditions and limitations applicable to any Unit Appreciation Rights awarded pursuant to this Plan, including
the term of any Unit Appreciation Rights and the date or dates upon which they become exercisable, shall be determined by the Committee. 

        (c)   Restricted Units. An Award may be in the form of a Restricted Unit. The Committee shall have the authority to determine
the number of Restricted Units to be granted to a Participant, the Restriction Period, the conditions under which the Restricted Units may become vested or forfeited, which may include, without
limitation, accelerated vesting upon the achievement of specified performance objectives, and such other terms and conditions as the Committee may establish with respect to such Awards, including
whether cash distributions with respect to such Restricted Units are subject to forfeiture restrictions. 

        (d)   Phantom Units. An Award may be in the form of Phantom Units. The Committee shall have the authority to determine the
number of Phantom Units to be granted to a Participant, the Restriction Period, the conditions under which the Phantom Units may become vested or forfeited, which may include, without limitation,
accelerated vesting upon the achievement of specified performance objectives, and such other terms and conditions as the Committee may establish with respect to such Awards, including whether
Distribution Equivalents are granted with respect to such Phantom Units. 

        9.     Award Payment and Distributions. 

        (a)   General. Payment of Awards may be made in the form of cash or Units, or a combination thereof, and may include such
restrictions as the Committee shall determine, including, in the case of Units, restrictions on transfer and forfeiture provisions. Notwithstanding anything in the Plan or any Award Agreement to the
contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the Company or the General
Partner, as applicable, is not reasonably able to obtain Units to deliver pursuant to such Award without violating the rules or regulations of any applicable law or securities exchange. If payment of
an Award is made in the form of Restricted Units, the applicable Award Agreement relating to such Units shall specify whether certificates evidencing such Units are to be issued at the beginning or
end of the Restriction Period. In the event that certificates are to be issued at the beginning of the Restriction Period, the certificates evidencing such Units (to the extent that such Units
are so evidenced) shall contain appropriate legends and restrictions that describe the terms and conditions of the restrictions applicable thereto. In the event that Units are to be issued at the end
of the Restriction Period, the right to receive such Units shall be evidenced by book entry registration or in such other manner as the Committee may determine. 

4

 

        (b)   Deferral. With the approval of the Committee, amounts payable in respect of Awards may be deferred and paid either in the
form of installments or as a lump-sum payment; provided, however, that if deferral is permitted, each provision of the Award shall be interpreted to permit the deferral only as allowed in
compliance with the requirements of Section 409A of the Code and any provision that would conflict with such requirements shall not be valid or enforceable. The Committee intends that any
Awards under the Plan satisfy the requirements of Section 409A of the Code to avoid imposition of applicable taxes thereunder. The Committee may permit selected Participants to elect to defer
payments of some or all types of Awards in accordance with procedures established by the Committee. Any deferred payment of an Award, whether elected by the Participant or specified by the Award
Agreement or by the Committee, may be forfeited if and to the extent that the Award Agreement so provides. 

        (c)   Distributions and Interest. Rights to Distribution Equivalents or other distributions may be extended to and made part of
any Award consisting of or denominated in Units, subject to such terms, conditions and restrictions as the Committee may establish. The Committee may also establish rules and procedures for the
crediting of interest on deferred cash payments and Distribution Equivalents for Awards consisting of or denominated in Units. 

        (d)   Consideration. Awards may be granted for such consideration as the Committee determines, including, without limitation,
service or such minimal cash consideration as may by required by applicable law. 

        10.   Option Exercise. The price at which Units may be purchased under an Option shall be paid in full at the time of exercise
in cash or, if elected by the Participant and approved by the Committee, the Participant may purchase such Units by means of tendering Units already owned or surrendering another Award, including
Restricted Units, valued at Fair Market Value on the date of exercise, or any combination thereof. The Committee shall determine acceptable conditions and methods for Participants to tender Units or
other Awards. The Committee may provide for procedures to permit the exercise or purchase of such Awards by use of the proceeds to be received from the sale of Units issuable pursuant to an Award.
Unless otherwise provided in the applicable Award Agreement, in the event Restricted Units are tendered as consideration for the exercise of an Option, a number of the Units issued upon the exercise
of the Option equal to the number of Restricted Units used as consideration therefor shall be subject to the same restrictions as the Restricted Units so submitted as well as any additional
restrictions that may be imposed by the Committee. 

        11.   Taxes. The Company shall have the right to deduct applicable taxes from any Award payment and withhold, at the time of
delivery or vesting of cash or Units under this Plan, an appropriate amount of cash or number of Units or a combination thereof for payment of taxes required by law or to take such other action as may
be necessary in the opinion of the Company to satisfy all obligations for withholding of such taxes. The Committee may also permit withholding to be satisfied by the transfer to the Company, the
General Partner or any Affiliate of Units theretofore owned by the holder of the Award with respect to which withholding is required. If Units are used to satisfy tax withholding, such Units shall be
valued based on the Fair Market Value when the tax withholding is required to be made. 

        12.   Amendment, Modification, Suspension or Termination. Except as required by applicable law or the rules of the principal
securities exchange on which the Units are traded, the Board of Directors of the Company may, subject to ratification by the Board, amend, modify, suspend or terminate this Plan for the purpose of
meeting or addressing any changes in legal requirements or for any other purpose permitted by law including increasing the number of Units available for Awards under the Plan without the consent of
any partner, Participant, other holder or beneficiary of an Award or other Person; provided, however, that no amendment or alteration that would adversely affect the rights of any 

5

 

Participant
under any Award previously granted to such Participant shall be made without the consent of such Participant. 

        The
Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no change in any Award shall materially reduce the benefit to
a Participant without the consent of such Participant. 

        13.   Assignability. Unless otherwise determined by the Committee in the Award Agreement, no Award or any other benefit under
this Plan shall be assignable or otherwise transferable. Any attempted assignment of an Award or any other benefit under this Plan in violation of this paragraph 13 shall be null and void. 

        14.   Adjustments. 

        (a)   The
existence of outstanding Awards shall not affect in any manner the right or power of the General Partner to make or authorize any or all distributions, adjustments,
recapitalizations, reorganizations or other changes in the Units or other interests in the Partnership or its business or any merger or consolidation of the Partnership, or any issue of bonds or
debentures or the dissolution or liquidation of the Partnership, or any sale or transfer of all or any part of its assets or business, or any other act or proceeding of any kind, whether or not of a
character similar to that of the acts or proceedings enumerated above. 

        (b)   If
the Committee determines that any distribution (whether in the form of cash, Units, other securities, or other property), re-capitalization, split,
reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership, issuance of
warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event affects the Units such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem
equitable, adjust any or all of: 

        (i)    the
number and type of Units (or other securities or property) with respect to which Awards may be granted; 

        (ii)   the
number and type of Units (or other securities or property) subject to outstanding Awards; and 

        (iii)  if
deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided, that the number of Units subject to any Award will always be
a whole number. 

        (c)   The
Committee is hereby authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring
events (including, without limitation, the events described in Section 14(b) of the Plan) affecting the Partnership or the financial statements of the Partnership, or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan. 

        15.   Restrictions. No Units or other form of payment shall be issued with respect to any Award unless the Company shall be
satisfied based on the advice of its counsel that such issuance will be in compliance with applicable federal and state securities laws. Certificates evidencing Units delivered under this Plan (to the
extent that Units are so evidenced) may be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission, any securities exchange or transaction reporting system upon which the Units are then listed or to which it is admitted for quotation and any 

6

 

applicable
federal or state securities law. The Committee may cause a legend or legends to be placed upon such certificates (if any) to make appropriate reference to such restrictions. 

        16.   Unfunded Plan. Insofar as it provides for Awards of cash, Units or rights thereto, this Plan shall be unfunded. Although
bookkeeping accounts may be established with respect to Participants who are entitled to cash, Units or rights thereto under this Plan, any such accounts shall be used merely as a bookkeeping
convenience. The Company shall not be required to segregate any assets that may at any time be represented by cash, Units or rights thereto, nor shall this Plan be construed as providing for such
segregation, nor shall the Company, the Board or the Committee be deemed to be a trustee of any cash, Units or rights thereto to be granted under this Plan. Any liability or obligation of the Company
to any Participant with respect to an Award of cash, Units or rights thereto under this Plan shall be based solely upon any contractual obligations that may be created by this Plan and any Award
Agreement, and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Board nor the
Committee shall be required to give any security or bond for the performance of any obligation that may be created by this Plan. 

        17.   Code Section 409A. Notwithstanding anything in this Plan to the contrary, if any Plan provision or Award under the
Plan would result in the imposition of an applicable tax under Code Section 409A and related regulations and Treasury pronouncements ("Section 409A"), that Plan provision or Award will
be reformed to avoid imposition of the applicable tax and no action taken to comply with Section 409A shall be deemed to adversely affect the Participant's rights to an Award or to require the
Participant's consent. 

        18.   Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or
unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed
amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such
provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 

        19.   No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the
Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be
canceled, terminated, or otherwise eliminated. 

        20.   Facility Payment. Any amounts payable hereunder to any person under legal disability or who, in the judgment of the
Committee, is unable to properly manage his financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the
Committee may select, and the Company shall be relieved of any further liability for payment of such amounts. 

        21.   Governing Law. This Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise
governed by mandatory provisions of the Code or the securities laws of the United States, shall be governed by and construed in accordance with the laws of the State of Colorado without giving effect
to any choice or conflict of law provision or rule (whether of such state or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than such state. 

        22.   Effectiveness. This Plan shall be effective on the date it is ratified by the Board following its adoption by the Board
of Directors of the Company, and shall continue until the first to occur of the date the Plan is terminated, the date Units are no longer available for grants of Awards under the Plan, or the date
that is ten years after the initial adoption of the Plan. 

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        IN
WITNESS WHEREOF, TransMontaigne Services Inc. has caused this Plan to be executed by its duly authorized officer, effective as provided herein. 

	

 	
 	

TRANSMONTAIGNE SERVICES INC.
	

 	
 	

By:	
 	

/s/  RANDALL J. LARSON      

	 	 	Title:	 	Executive Vice President
	 	 	Date:	 	May 27, 2005
	

ATTEST: Erik B. Carlson	
 	

 	
 	

 
	

DATE: May 27, 2005	
 	

 	
 	

 

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TRANSMONTAIGNE SERVICES INC. LONG-TERM INCENTIVE PLAN

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