Document:

Exhibit
10.1

 

[Portions of this Exhibit have been omitted
pursuant to a request for confidential treatment filed with the Securities and
Exchange Commission.  Such omitted
portions are indicated by the characters “[***].”]

 

PRODUCT SUPPLY AGREEMENT

 

This Product Supply Agreement (this “Agreement”)
is entered into this 4th day of November 2004 (the “Effective
Date”) between Morgan Stanley Capital Group Inc. (“MSCG”), a
Delaware corporation with offices located at 2000 Westchester Avenue, Floor 01,
Purchase, New York 10577-2530, and TransMontaigne Product Services Inc. (“TPSI”), a Delaware
corporation with offices located at
1670 Broadway, Suite 3100, Denver, Colorado 80202 (each of the foregoing
referred to individually as a “Party”
or collectively as the “Parties”).

 

R E C I T
A L S

 

WHEREAS, TPSI is
engaged in the business of storing, distributing, supplying and marketing
Products;

 

WHEREAS, in order to conduct its business,
TPSI requires a long-term supply of Products; and

 

WHEREAS, MSCG desires to sell and supply
Products to TPSI and TPSI desires to purchase and receive Products on a
regularly scheduled basis upon the terms and conditions hereof.

 

NOW, THEREFORE,
in consideration of the premises and the respective promises, conditions and
agreements contained herein, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, MSCG and TPSI do hereby
agree as follows:

 

ARTICLE 1

DEFINITIONS
AND CONSTRUCTION OF AGREEMENT

 

1.1                                 Definitions.  Unless the context specifically indicates
otherwise, for purposes of this Agreement, including the foregoing Recitals,
the following terms shall have the meanings indicated below:

 

“Adjusted Forecasted Pipeline Volumes”
has the meaning specified in Section 3.2(b).

 

“Adjusted Forecasted Waterborne Volumes”
has the meaning specified in Section 3.3(b).

 

“Adjusted [***] Price” has the meaning
specified in Section 5.2.

 

“Adjustments”
means the deemed price adjustments set forth in Schedule 5.2.

 

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

 

1

 

purposes of this Agreement and the Related Agreements, in respect of
MSCG, the term Affiliate does not include Morgan Stanley Derivative Products
Inc.

 

“Agreement”
or “this Agreement” means this Product Supply Agreement,
as such agreement may be amended, modified, supplemented, extended, renewed or
restated from time to time in accordance with the terms hereof, including the
Schedules and Exhibits attached hereto.

 

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

 

“Available Storage Capacity” has the
meaning specified in Section 3.1(e).

 

“Bankrupt” means that a Party or its Guarantor, if any, (i) is
dissolved, other than pursuant to a consolidation, amalgamation or merger, (ii)
becomes insolvent or is unable to pay its debts or fails or admits in writing
its inability generally to pay its debts as they become due, (iii) makes a
general assignment, arrangement or composition with or for the benefit of its
creditors, (iv) institutes a Proceeding or files a petition seeking a judgment
of insolvency or bankruptcy or any other relief under any bankruptcy or
insolvency law or other similar law affecting creditor’s rights, including a
voluntary petition under chapter 7 or chapter 11 of the Bankruptcy Code, (v)
has instituted against it a Proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditor’s rights, including an order for relief under
the U.S. Bankruptcy Code, or a petition is presented for its winding-up or
liquidation, including an involuntary petition under chapter 7 or chapter 11 of
the Bankruptcy Code, and such Proceeding results in a judgment or is not
dismissed or permanently stayed within 15 days of the filing of such Proceeding,
(vi) has a resolution passed for its winding-up, official management or
liquidation, other than pursuant to a consolidation, amalgamation or merger,
(vii) seeks or becomes subject to the appointment of an administrator,
provisional liquidator, conservator, receiver, trustee, custodian or other
similar official for all or substantially all of its assets, (viii) has one or
more secured parties take possession of all or substantially all of its assets,
or has a distress, execution, attachment, sequestration or other legal process
levied, enforced or sued on or against all or substantially all of its assets,
(ix) files an answer or other pleading admitting or failing to contest the
allegations of a petition filed against it in any Proceeding of the foregoing nature
or (x) takes any other action to authorize any of the foregoing actions.

 

“Bankruptcy
Code” means chapter 11 of Title 11, U.S. Code, as amended.

 

“Barrel” means forty-two (42) net
Gallons.

 

“Breakage Costs” means, all
out-of-pocket losses and expenses incurred by the Performing Party as a result
of termination and liquidation of Transactions, Other Commodity Agreements and
Specified Agreements pursuant to Article 20 (excluding any amounts
included in Gain, Loss or Unpaid Amounts), including reasonable attorneys’
fees, court costs, collection

 

2

 

costs,
interest charges and other disbursements and any brokerage fees and
commissions, damages, losses and expenses incurred in obtaining, maintaining,
replacing or liquidating commercially reasonable hedges or trading positions
relating to the Transactions, Other Commodity Agreements or Specified
Agreements that are being terminated and liquidated, all as determined in a
commercially reasonable manner by the Performing Party.  

 

“Business Day” means a day on which
banks are open for general commercial business in New York, New York and
Denver, Colorado and on which the New York Mercantile Exchange is open for
trading.

 

“Buy/Sell
Transactions” has the meaning specified in Section 6.1.

 

“Claim” means a dispute, claim or controversy
whether based on contract, tort, strict liability, statute or other legal or
equitable theory (including any claim of fraud, misrepresentation or fraudulent
inducement or any question of validity or effect of an agreement).

 

“Closing” has the meaning specified in Section 11.2.

 

“Closing Date” has the meaning specified in Section 11.2.

 

“Commencement Date” means [***] with respect to
TPSI’s nomination of Preliminary Forecasted Waterborne Volumes for supply of
Products to the Waterborne Terminals, with deliveries of Products to commence
during [***], and [***] with respect to TPSI’s nomination of Preliminary
Forecasted Pipeline Volumes for supply of Products to the Pipeline Terminals,
with deliveries of Products to commence [***], or such other subsequent date or
dates mutually agreed to by the Parties, upon which MSCG is obligated to and
commences supplying Products to TPSI at such Terminals pursuant to this
Agreement.

 

“Confidential Information” means the
terms and conditions of this Agreement or of any Transaction contemplated by or
undertaken pursuant to this Agreement and any information exchanged between the
Parties relating to this Agreement.

 

“Cover Costs” means the total costs
actually incurred by TPSI in procuring replacement Products pursuant to Section 3.4(c),
Section 4.5(a), Section 4.5(b) or Section 17.4,
or the total costs actually incurred by MSCG in disposing of Products pursuant
to Section 3.4(d), in each case as evidenced by appropriate
supporting documentation, including (i) as to the costs incurred by TPSI to
procure replacement Products, the amount by which the aggregate prices paid by
TPSI to procure replacement Products exceeds the aggregate contract prices that
TPSI would have paid MSCG under Section 5.1 or Section 5.2
and (ii) as to the costs incurred by MSCG to dispose of Products, the amount by
which the aggregate disposal prices obtained by MSCG is less than the aggregate
contract prices that MSCG would have received from TPSI under Section 5.1
or Section 5.2, in each case under clause (i) or (ii)
pursuant to an arms-length purchase from or sale to a third party of the same
quality of Products, plus (iii) any resulting incremental out-of-pocket
costs directly attributable to the acquisition of replacement Products not
supplied by MSCG or to the disposition of Products not purchased by TPSI,
including transportation, blending costs, insurance, physical losses, storage
and demurrage costs.

 

3

 

“Default”
or an “Event of Default” means an occurrence of any of the events or
circumstances described in Article 20.

 

“Default
Interest Rate” means the lesser of (i) twelve percent (12%) per annum and
(ii) the maximum rate permitted by Applicable Law.

 

“Defaulting
Party” has the meaning specified in Section 20.2.

 

“Early
Termination Date” has the meaning specified in Section 20.3(a).

 

“Effective
Date” means the date first written above, upon which this Agreement becomes
binding upon and enforceable against the Parties.

 

“Environmental
Law” means any existing Applicable Law that governs or purports to govern
the protection of persons, natural resources or the environment (including the
protection of ambient air, surface water, groundwater, land surface or
subsurface strata, endangered species or wetlands), occupational health and
safety and the manufacture, processing, distribution, use, generation,
handling, treatment, storage, disposal, transportation, release or management
of solid waste, industrial waste or hazardous substances or materials.

 

“ET”
means Eastern Time.

 

[***]

 

“Excess
Volumes” has the meaning specified in Section 3.1(f).

 

“Final Forecasted Pipeline Volumes” has the meaning specified in Section 3.2(c).

 

“Final Forecasted Waterborne Volumes” has the meaning specified in Section 3.3(d).

 

“Force
Majeure” means any cause or event reasonably beyond the control of a Party,
including fires, earthquakes, lightning, floods, explosions, storms, adverse
weather, landslides and other acts of natural calamity or acts of God;
navigational accidents or maritime peril; Vessel damage or loss; strikes,
grievances, actions by or among workers or lock-outs, whether or not such labor
difficulty could be settled by acceding to any demands of any such labor group
of individuals; accidents at, closing of, or restrictions upon the use of
mooring facilities, docks, ports, pipelines, harbors, railroads or other
navigational or transportation mechanisms; disruption or breakdown of or
explosions or accidents to wells, storage plants, refineries, terminals,
machinery or other facilities; acts of war, hostilities (whether declared or
undeclared), civil commotion, embargoes, blockades, terrorism, sabotage or acts
of the public enemy; any act or omission of any Governmental Authority; good
faith compliance with any order, request or directive of any Governmental
Authority; curtailment, interference, failure or cessation of supplies
reasonably beyond the control of a Party; or any other cause reasonably beyond the
control of a Party, whether similar or dissimilar to those above and whether
foreseeable or unforeseeable, which, by the exercise of due diligence, such
Party could not have been able to avoid or overcome. A Party’s inability
economically to perform its Obligations under any Transaction does not
constitute an event of Force Majeure.

 

4

 

“Forecasted First-Day Excess Inventory”
has the meaning specified in Section 3.3(c).

 

“Freight
Costing” means the deemed cost of transporting Products from
the USGC to each Terminal, as set forth in Schedule 5.1.

 

“Gain”
means, for any Transaction as of the Termination Determination Date, the
positive amount, if any, determined by the Performing Party in a commercially
reasonable manner (which the Performing Party may determine by obtaining
quotations from Reference Market-Makers), that the Performing Party would be
required to pay to a Reference Market-Maker to enter into a contract with the
Reference Market-Maker that had the same terms as the Defaulting Party’s
Remaining Contract Obligations.

 

“Gallon” means a U.S. gallon of 231 cubic inches measured at 60° F.

 

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

 

“Guarantor”
means TransMontaigne Inc.

 

“Guaranty”
means the guaranty by TransMontaigne Inc. of TPSI’s (or, in the case of any
assignment and assumption or transfer of this Agreement to an Affiliate, such
Affiliate’s) prompt and complete payment obligations under this Agreement or
any Transaction, which guaranty is provided to MSCG pursuant to Section 9.2.

 

“Indemnified
Party” has the meaning specified in Section 19.1.

 

“Indemnifying
Party” has the meaning specified in Section 19.1.

 

“Independent
Inspector” means a licensed Person who performs sampling,
quality analysis and quantity determination of the Products purchased or sold
by Vessel hereunder.

 

“Initial Term” has the meaning
specified in Section 2.1.

 

“Injection Date” has the meaning
specified in Section 5.1.

 

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

 

“ISPS Code” means the International
Code for the Security of Ships and of Port Facilities and the relevant 2002
amendments to Chapter XI of the International Convention for the Safety of Life
at Sea, 1974.

 

“Letter of Credit” means an
irrevocable standby letter of credit expiring in not less than 30 days, issued
or confirmed by a first class bank acceptable to MSCG and in form and substance
reasonably acceptable to MSCG, appropriately completed, the costs for which are
for TPSI’s account.

 

5

 

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

 

“LIBOR”
means, as of the date of any determination, the London Interbank Offered Rate
for one-month U.S. dollar deposits appearing on Page 3750 of the Telerate
screen (or any successor page) at approximately 11:00 a.m. (London time).  If such rate does not appear on Page 3750 of
the Telerate screen (or otherwise on such screen), LIBOR shall be determined by
reference to such other comparable publicly available service for displaying
eurodollar rates as the Parties may mutually agree.  LIBOR shall be established on the first day
on which a determination of the interest rate is to be made under this Agreement
and shall be adjusted daily based on the one-month LIBOR quotes made available
through the foregoing sources.

 

“Liquidation Amount” means the
aggregate of the net Gain or Loss with respect to all terminated Transactions
as of the Termination Determination Date, plus any Unpaid Amounts, any Breakage
Costs and interest.  Interest shall
accrue (i) in respect of any net Gain or Loss, from and including the Early
Termination Date to, but excluding, the date of the Termination Payment and
(ii) in respect of any Unpaid Amounts, from and including the date on which
such amounts were originally due and payable to the date of the Termination
Payment.  Interest shall accrue at the
Default Interest Rate in the case of any Liquidation Amount owing to the
Performing Party.  Interest shall accrue
at the Interest Rate in the case of any Loss or Unpaid Amount owing to the
Defaulting Party and be expressed as a negative number.  All Gains, Losses, Unpaid Amounts, Breakage
Costs and interest shall be aggregated or netted to a single liquidated amount
owing from or to the Defaulting Party.

 

“Location Costing” means the Freight
Costing [***], as set forth in Schedule 5.1.

 

“Loss”
means, with respect to any Transaction as of the Termination Determination
Date, the amount (expressed as a negative number), if any, determined by the
Performing Party in a commercially reasonable manner (which the Performing
Party may determine by obtaining quotations from Reference Market-Makers), that
a Reference Market-Maker would be willing to pay to the Performing Party in
order for such Reference Market-Maker to enter into a contract with the
Performing Party that had the same terms as the Defaulting Party’s Remaining
Contract Obligations.

 

“Material Adverse Effect” means (i) as
to TPSI or its Guarantor, any condition, circumstance, event, change or effect
that has had or resulted in or reasonably could be expected to have or result
in a material adverse change in, or a material adverse effect upon, TPSI’s or
its Guarantor’s liquidity, operating results, financial condition or financial
prospects taken as a whole, and (ii) as to MSCG, the occurrence of a Parent
Ratings Event.

 

“Motor
Fuel Taxes” means any and all federal, state and local taxes (other than
taxes on income or capital and Property Taxes), fees and charges of every
description on or applicable to the Products, including all motor fuel, special
fuel, diesel, excise, gross receipts, oil company

 

6

 

franchise, environmental, spill, and sales
and use taxes, however designated, paid or incurred directly or indirectly with
respect to the purchase, storage, exchange, use, transportation, resale,
importation into a state or handling of the Products.

 

“MSCG”
has the meaning specified in the
preamble to this Agreement.

 

“MTSA” means the U.S. Maritime
Transportation Security Act of 2002.

 

[***]

 

“Notice of Readiness” means, for
purposes of establishing the Adjusted [***] Price under Section 5.2,
the notice tendered to the appropriate port authority (with a copy to TPSI) by
a Vessel that it has arrived at the customary anchorage.

 

“Obligations” means a Party’s prompt
and complete payment and performance of its covenants and obligations required
pursuant to this Agreement or under any Transaction or the Guarantor’s prompt
and complete payment and performance of its obligations under the Guaranty.

 

[***]

 

“Original Index” has the meaning specified in Section 5.4.

 

“Other Agreement Termination Amount” has the meaning specified in Section 20.4(b).

 

“Other Commodity Agreement” means any
transaction between the Parties other than a Transaction, including a spot or
forward contract, option, swap, swap option, cap, floor or collar, on or with
respect to a commodity.  As of the
Effective Date, such Other Commodity Agreements are those agreements set forth
in Schedule 1.1.

 

“Parent Ratings Event” means a drop in
Morgan Stanley’s long-term, senior, non-credit enhanced unsecured debt ratings
(i) assigned by Standard & Poor’s Ratings Services, a division of the
McGraw-Hill Companies, Inc., or any successor or assignee of the business of
such division in the business of rating securities, below “BBB-” (or its then
current equivalent) or (ii) assigned by Moody’s Investors Service, Inc., or any
successor or assignee of the business of such division in the business of
rating securities, below “Baa3” (or its then current equivalent).

 

“Party” or “Parties” has the
meaning specified in the preamble to this Agreement.

 

“Performing Party” has the meaning
specified in Section 20.2.

 

“Person” means any individual, sole
proprietorship, partnership, joint venture, limited liability company, trust,
unincorporated organization, association, corporation, institution, entity,
party, Governmental Authority, court or any other legal entity, whether acting
in an individual, fiduciary or other capacity.

 

[***]

 

7

 

“Pipeline Terminals” means those
Terminals listed on Schedule 3.1, which are served by the Colonial
Pipeline or the Plantation Pipeline or both.

 

[***]

 

“Potential Event of Default” means any
event or occurrence, which with notice or the passage of time, would constitute
an Event of Default.

 

“Preliminary Forecasted Pipeline Volumes”
has the meaning specified in Section 3.2(a).

 

“Preliminary Forecasted Waterborne Volumes”
has the meaning specified in Section 3.3(a).

 

“Proceeding” means any action, suit,
Claim, investigation, review or other proceeding, at law or in equity, before
any Governmental Authority or before any arbitrator, board of arbitration or
similar entity.

 

“Products” means refined petroleum
products that meet the specifications as published from time to time by the
Colonial Pipeline and that the Parties mutually agree that MSCG shall supply
and deliver to TPSI pursuant to this Agreement, including (i) all grades of
unleaded conventional gasoline and unleaded gasoline meeting conventional or
reformulated specifications, including 87 octane unleaded gasoline, 89 octane
mid-grade gasoline and 93 octane super premium gasoline; (ii) No. 2
high-sulfur, off-road, dyed, non-taxable diesel fuel, with a minimum of 140°F
flash point if delivered to the Waterborne Terminals; (iii) No. 2 low-sulfur,
on-road, clear, taxable diesel fuel, with a minimum of 140°F flash point if
delivered to the Waterborne Terminals; and (iv) kerosene.  In addition, all Products for delivery to the
Waterborne Terminals must meet all ASTM standards, including [***].
Notwithstanding the foregoing, low-sulfur and high-sulfur diesel fuel delivered
to the Waterborne Terminals at any time during the year [***].

 

“Property
Taxes” means any and all tangible personal property taxes, ad valorem property taxes or the like
imposed on the value of the Products.

 

“Reference Market-Maker” means a leading
dealer, broker or industry participant trading the Products, which is selected
by the Performing Party in good faith from among firms of the highest credit
standing that satisfy all the criteria that such Party applies generally with
respect to dealers, brokers or industry participants trading the Products at
the time in deciding whether to offer or to make an extension of credit or to
enter into a contract or contracts comparable to the relevant Transaction or
Transactions.

 

“Related Agreements” means the
agreements listed in Section 11.1 and any other agreements or
documents executed in connection with or as required under this Agreement.

 

“Relevant Price” has the meaning specified in Section 5.4.

 

“Remaining
Contract Obligations” means, at any time, for a Transaction, Other Commodity
Agreement or Specified Agreement, the Obligations of each Party that remain to
be

 

8

 

performed in respect of all periods after the
Early Termination Date, excluding any Unpaid Amounts.

 

“Renewal Term” has the meaning
specified in Section 2.2.

 

“Safety Stock” has the meaning
specified in Section 3.3(a).

 

“Specified Agreement” means any
agreement or transaction between (i) MSCG and TPSI or an Affiliate of TPSI or
(ii) an Affiliate of MSCG and TPSI, in each case other than a Transaction under
this Agreement, Other Commodity Agreement and any securities repurchase or
reverse repurchase agreement or similar transaction.  For the avoidance of doubt, the term
Specified Agreement includes each of the Related Agreements, and any
transaction and obligation thereunder. 
As of the Effective Date, such Specified Agreements are those agreements
listed in Schedule 1.1.

 

“Specified
Indebtedness” means any obligation (whether present or future, contingent
or otherwise, as principal or surety or otherwise) in respect of borrowed
money.

 

“Spot
Delivery Volumes” has the meaning specified in Section 3.1(g).

 

“Term” has the meaning specified in Section 2.2.

 

“Terminal Services Agreements” means
the three terminaling agreements between TPSI and MSCG for the storage and
throughput [***], each to be entered into prior to or as of the Closing Date
hereof.

 

“Terminals” has the meaning specified in Section 3.1(a).

 

“Termination
Determination Date” means, for purposes of determining the Gain or Loss for
any Transaction, Other Commodity Agreement or Specified Agreement terminated
pursuant to Article 20, the Early Termination Date or, if that is
not reasonably practicable, the earliest date thereafter that is reasonably
practicable.

 

“Termination
Payment” has the meaning specified in Section 20.3(a).

 

“Third
Party Claim” has the meaning specified in Section 19.3.

 

[***]

 

“TPSI”
has the meaning specified in the
preamble to this Agreement.

 

“TPSI
Exchange Agreements” has the meaning specified in Section 3.1(b).

 

“Transaction”
means any purchase or sale of Products between the Parties pursuant to this
Agreement.

 

“Unpaid Amounts” means, without
duplication, the net unpaid amount owed to the Performing Party (expressed as a
positive number) or the Defaulting Party (expressed as a

 

9

 

negative number) under any Transaction, any Other Commodity Agreement
or any Specified Agreement in respect of any period ending on or before the
Early Termination Date, including (i) any transaction for which physical
delivery was made on or before the Early Termination Date but payment therefor
has not been made prior to such Early Termination Date or (ii) any transaction
that required physical delivery to a Party on or prior to such Early
Termination Date and that has not been delivered on or prior to such date
(which amount shall equal the reasonably determined fair market value of such
Products as of the originally scheduled delivery date).

 

“USGC” means the U.S. Gulf Coast.

 

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

 

“Waterborne Terminals” means the
Terminals located [***], which are listed on Schedule 3.1.

 

1.2                                 Construction
of Agreement.

 

(a)                                  Unless
otherwise specified, all references herein are to the Articles, Sections,
Schedules and Exhibits of this Agreement and all Schedules and Exhibits are
incorporated herein.

 

(b)                                 All
headings herein are intended solely for convenience of reference and shall not
affect the meaning or interpretation of the provisions of this Agreement.

 

(c)                                  Unless
expressly provided otherwise, the word “including” as used herein does not
limit the preceding words or terms and shall be read to be followed by the
words “without limitation” or words having similar import.

 

(d)                                 Unless
expressly provided otherwise, all references to days, weeks, months and
quarters mean calendar days, weeks, months and quarters, respectively.

 

(e)                                  Unless
expressly provided otherwise, references herein to “consent” mean the prior
written consent of the Party at issue, which shall not be unreasonably
withheld, delayed or conditioned.

 

(f)                                    A
reference to any Party to this Agreement or another agreement or document
includes the Party’s permitted successors and assigns.

 

(g)                                 Unless
the contrary clearly appears from the context, for purposes of this Agreement,
the singular number includes the plural number and vice versa; and each gender
includes the other gender.

 

(h)                                 Except
where specifically stated otherwise, any reference to any Applicable Law or agreement
shall be a reference to the same as amended, supplemented or re-enacted from
time to time.

 

(i)                                     The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement.

 

10

 

(j)                                     The
Parties acknowledge that they and their counsel have reviewed and revised this
Agreement and that no presumption of contract interpretation or construction
shall apply to the advantage or disadvantage of the drafter of this Agreement.

 

ARTICLE 2

TERM AND
TERMINATION

 

2.1                                 Initial
Term.  This Agreement shall become
effective on the Effective Date and shall continue until December 31, 2011
(the “Initial Term”).

 

2.2                                 Renewal
Term.  Not later than 360 days prior
to the expiration of the Initial Term, the Parties may mutually agree to renew
this Agreement for an additional term on such terms as the Parties may mutually
agree (the “Renewal Term”).  The
Initial Term together with any Renewal Term or Renewal Terms shall be the “Term”.

 

2.3                                 Early
Termination Option.

 

(a)                                  MSCG
may terminate this Agreement, upon [***] notice to TPSI, if (i) TPSI enters
into a binding agreement to sell, lease, sublease, transfer or otherwise
dispose of, or grant any Person (other than an Affiliate) an option to acquire,
in one transaction or a series of related transactions, all or a material
portion of its Products marketing and distribution business and (A) the
transferee fails to assume all of the Obligations of TPSI or its Guarantor
under this Agreement or the Guaranty, respectively, either by operation of law
or by agreement satisfactory to MSCG or otherwise or (B) in MSCG’s reasonable
opinion, the creditworthiness of the transferee, taking into account any
guaranty, is materially weaker than that of the predecessor or its guarantor
immediately prior to the transfer; or (ii) TPSI enters into a binding agreement
to sell, lease, sublease, transfer or otherwise dispose of, or grant any Person
(other than an Affiliate) an option to acquire, in one transaction or a series
of related transactions, all or a material portion of its Products marketing
and distribution business and the transferee is [***] any Person listed on Schedule 2.3(a).

 

(b)                                 Either
Party may terminate this Agreement, upon [***] notice to the other Party, if
the other Party or, in the case of TPSI, TPSI or its Guarantor, consolidates or
amalgamates with, merges with or into, or transfers all or substantially all of
its assets to, another entity (other than an Affiliate) and, at the time of
such consolidation, amalgamation, merger or transfer, (i) the resulting,
surviving or transferee entity fails to assume all of the Obligations of such
Party or, in the case of TPSI, including those of its Guarantor, under this
Agreement, any of the transferred Related Agreements, any Other Commodity
Agreement, the Guaranty or any other guaranty made pursuant to any Other
Commodity Agreement, either by operation of law or by agreement satisfactory to
the other Party or otherwise or (ii) in the reasonable opinion of the other
Party, the creditworthiness of the successor, surviving or transferee entity,
taking into account any guaranty, is materially weaker than that of the
predecessor or its guarantor immediately prior to the consolidation,
amalgamation, merger or transfer.

 

(c)                                  Either
Party may terminate this Agreement, upon [***] notice to the other Party, if
the other Party or, in the case of TPSI, TPSI or its Guarantor, consolidates or
amalgamates with, merges with or into, or transfers sells, leases, subleases or
otherwise

 

11

 

disposes of all or substantially all of its assets to,
another entity (including an Affiliate) and, at the time of such consolidation,
amalgamation, merger or transfer the resulting, surviving or transferee entity
is [***] any Person listed on Schedule 2.3(a).

 

(d)                                 Subject
to an event of Force Majeure, and notwithstanding anything to the contrary in Section 3.4
or any payments made or received pursuant thereto, MSCG may terminate this
Agreement, upon [***] notice to TPSI, if TPSI nominates for [***] (i) Adjusted
Forecasted Pipeline Volumes less than the minimum volumes as set forth in Schedule 3.2
or (ii) Adjusted Forecasted Waterborne Volumes less than the minimum volumes as
set forth in Schedule 3.3.

 

(e)                                  Subject
to Section 3.1(c) or an event of Force Majeure, and notwithstanding
anything to the contrary in Section 3.4 or any payments made or
received pursuant thereto, and further provided that MSCG has timely received
the nominations from TPSI pursuant to Section 3.2 and Section 3.3,
TPSI may terminate this Agreement, upon [***] notice to MSCG, if MSCG fails to
supply and deliver to TPSI for [***] the (i) Final Forecasted Pipeline Volumes
pursuant to Section 3.2(c) or (ii) Final Forecasted Waterborne
Volumes pursuant to Section 3.3(d).

 

(f)                                    The
early termination of this Agreement pursuant to this Section 2.3
shall be effective upon the termination date designated in such notice (but not
earlier than the date of such notice) and neither Party shall have any further
obligation to the other Party or shall have responsibility for any Liabilities
to the other Party as of the termination date, except (i) for any payment and other
Obligations that have accrued under this Agreement prior to the termination
date and (ii) as provided in Article 20 and Article 21;
provided, however, that such early termination shall not relieve
any Party that has breached any provision of this Agreement from any
Liabilities as of the termination date resulting from such breach.

 

ARTICLE 3

PRODUCT SUPPLY

 

3.1                                 Supply
and Purchase Obligations.

 

(a)                                  Subject
to the limitations of this Article 3, on and after the Commencement
Date, MSCG shall supply TPSI with Products, and TPSI shall purchase such
Products, at the terminals listed in Schedule 3.1 (the “Terminals”).  MSCG shall be obligated to supply Products
only to the Terminals listed on Schedule 3.1.  Any addition of terminals at which TPSI
desires to have Product supplied shall be subject to the Parties’ mutual
agreement and TPSI shall provide MSCG with not less than [***] notice
specifying (i) the terminal and (ii) the date by which TPSI requests
commencement of Product supply.  TPSI may
delete any Terminals at which it no longer desires to have Product supplied if
it intends to no longer market and distribute Products from such Terminal; provided,
however, that TPSI shall provide MSCG with no less than [***] notice
specifying (i) the Terminal and (ii) the date by which TPSI requests
termination of Product supply.  [***]

 

(b)                                 In
addition to the supply obligations in Section 3.1(a), MSCG agrees
to deliver Products to TPSI [***] in volumes equivalent to those required under
the

 

12

 

exchange agreements between TPSI and its exchange
partners (the “TPSI Exchange Agreements”), which TPSI is obligated to
deliver to its exchange partners on exchange under such agreements, subject to
the maximum volumes set forth in Schedule 3.2.

 

(c)                                  MSCG’s
obligation to deliver Products to the Pipeline Terminals is subject to (i) [***],
and (ii) to TPSI’s timely provision of destination scheduling services as
provided in Section 3.5.  [***].

 

(d)                                 Except
as otherwise expressly provided herein, during the Term of this Agreement, MSCG
shall be the exclusive supplier of Products to TPSI at the Terminals for up to
the maximum volumes set forth in Schedule 3.2 and Schedule 3.3.  For avoidance of doubt, MSCG shall not be the
exclusive supplier of Products to TPSI at the Norfolk, Virginia Terminal or at
any of the terminals located on the Mississippi River or Ohio River; provided,
however, that if TPSI is supplying Products to any of its terminals
located on the Mississippi River or Ohio River via pipeline deliveries (when
TPSI is the shipper of record) to the Baton Rouge dock delivery point off of
the Colonial Pipeline, MSCG shall be the exclusive supplier of such Products.

 

(e)                                  TPSI
agrees to provide MSCG with nominations for delivery of Products to the
Terminals, and to purchase such Products upon receipt at the Terminals, in
volumes that are not less than the minimum volumes set forth in Schedule 3.2
and Schedule 3.3.  In
addition, subject to an event of Force Majeure, TPSI shall make available and
maintain storage capacity for receipt of MSCG’s deliveries of Products (such
capacity, the “Available Storage Capacity”) for each grade of Product at
each Waterborne Terminal as set forth in Schedule 3.3(c).

 

(f)                                    From
to time, TPSI may require a supply of Products for its marketing and distribution
business in excess of the maximum volumes set forth in Schedule 3.2
and Schedule 3.3 (the “Excess Volumes”), and shall request
that MSCG supply such Excess Volumes. 
MSCG, in its sole discretion, may elect to supply TPSI the Excess
Volumes upon mutually agreeable terms and conditions. [***].

 

(g)                                 From
time to time, subsequent to the required nomination process set forth in Section 3.2
and Section 3.3, TPSI may require additional volumes to be
delivered to the Terminals in a specific delivery month (the “Spot Delivery
Volumes”), and shall request that MSCG supply such volumes.  MSCG, in its sole discretion, may elect to
supply and deliver to TPSI such Spot Delivery Volumes upon mutually agreeable
terms and conditions. [***].

 

3.2                                 [***]

 

3.3                                 [***]

 

3.4                                 Delivery
Obligations.

 

(a)                                  [***]

 

(b)                                 [***]

 

(c)                                  [***]

 

13

 

(d)                                 Subject
to an event of Force Majeure, in the event that TPSI in any month should
purchase less than the Final Forecasted Pipeline Volumes or the Final
Forecasted Waterborne Volumes (in each case taking into account the tolerances
specified in Section 3.2(d) and Section 3.3(e)), TPSI
shall pay MSCG the Cover Costs of disposing of the shortfall volumes of
Products to third parties.  TPSI shall
pay MSCG the amount of Cover Costs within [***] from receipt of invoice
therefor and appropriate supporting documentation.

 

(e)                                  Subject
to an event of Force Majeure, in the event that MSCG is unable to supply
Products to TPSI at the Pipeline Terminals on or before [***] because it lacks
the necessary accounting infrastructure to calculate, prepare and issue
invoices to TPSI for such Products, MSCG shall so notify TPSI as soon as
practicable, but no later than [***].  In
such event, TPSI, upon receipt of such notice, shall undertake to calculate the
necessary pricing information, furnish MSCG with appropriate documentation in
respect of the Products being supplied, and prepare and issue invoices on MSCG’s
behalf in accordance with Article 7.  MSCG agrees to have TPSI prepare such
invoices until such time as MSCG has in place the necessary accounting
infrastructure to calculate, prepare and issue such Product invoices.  MSCG shall notify TPSI of [***] by which it
will be able to commence preparing Product invoices pursuant to this Agreement.

 

3.5                                 Scheduling
Services.  From and after the
Commencement Date, TPSI shall provide MSCG with destination scheduling services
with respect to the supply and delivery of Products to the Pipeline
Terminals.  MSCG shall be responsible for
origination scheduling on the Colonial Pipeline and the Plantation Pipeline,
and for both origination and destination scheduling on all Vessel deliveries to
the Waterborne Terminals.  During the
Term of this Agreement, neither Party shall schedule the delivery of
Products from the Collins/Purvis terminal facility to any terminal located in
the State of Mississippi.

 

ARTICLE 4

DELIVERY

 

4.1                                 [***]

 

4.2                                 Marine
Deliveries.  For delivery by Vessel, [***],
shall govern and are incorporated in this Agreement except that (i) [***], (ii)
MSCG shall be liable for [***] at the Waterborne Terminals, and (iii) the
Parties shall [***] attributable to the sampling and testing of Products upon
discharge at the Waterborne Terminals.

 

4.3                                 Measurement.  The quality and quantity of the Products
shall be determined in accordance with the latest established API/ASTM
standards for the method of delivery. 
All volumes shall be temperature corrected to 60oF in accordance with
the latest supplement or amendment to ASTM-IP petroleum measurement tables
(ASTM designated D#1250, table 6(b)). 
Quantities delivered into or from Vessels shall be measured by the
following methods in order of priority: 
(i) proven API-approved meters, (ii) static terminal tank gauges (except
to the extent that truck loading is permitted during discharge into a
Waterborne Terminal) or, (iii) if shore tanks are active other than during
truck loading, by the Vessel’s figures, adjusted with the applicable VEF.  Quantities delivered into or from pipelines
shall be determined using the respective pipeline’s calibrated meters.

 

14

 

4.4                                 Inspection
of Vessel Deliveries.  For Vessel
deliveries, each Party may have a representative present at the time of
discharge, gauging and measurement.  If a
Party declines to have a representative present, the results of the other Party’s
measurements and tests shall be deemed to be correct.  [***] 
Upon arrival at the discharge port, running samples shall be taken by an
Independent Inspector from each of the Vessel’s cargo compartments being used
to supply the Product.  From these
running samples, a volumetrically correct composite sample of the Vessel’s
cargo compartments that are being discharged will be made and tested by the
Independent Inspector in respect of the Product discharged to the Waterborne
Terminal.  In addition, each of the
Vessel’s cargo compartments discharging gasolines shall be tested for Reid
Vapor Pressure.  Certificates of quality
and quantity countersigned by an Independent Inspector shall be final and
binding on both Parties absent manifest error or fraud.  The Parties shall instruct the Independent
Inspector to obtain and retain appropriate samples of the Products for a period
of ninety (90) days from the date of measurement.

 

4.5                                 Off-Spec
Products.

 

(a)                                  Vessel
Deliveries.  TPSI may reject Products
that do not conform to the applicable specifications.  TPSI may elect, at its sole discretion and at
MSCG’s sole expense, to return any off-spec Products to MSCG.  TPSI shall have the option to either purchase
replacement Products or have MSCG replace the off-spec Products.  MSCG shall bear all costs associated with the
off-spec Products.  If TPSI purchases
replacement Products, MSCG shall reimburse TPSI upon receipt of TPSI’s invoice
and supporting documentation for all of TPSI’s Cover Costs.  If TPSI accepts the off-spec Products, the
Parties shall agree in advance on a reduced price that reflects such Products’
market value and quality.

 

(b)                                 Pipeline
Deliveries.  In the event that
off-spec Products are delivered by either the Colonial Pipeline or the
Plantation Pipeline, the Parties shall cooperate in making a Claim against and
in seeking the appropriate remedies from the delivering pipeline.  In the event that the delivering pipeline
does not make appropriate remedies, MSCG shall seek to recover from its
supplier any costs associated with return and replacement of the off-spec
Products.  [***]  Notwithstanding the foregoing, MSCG shall
reimburse TPSI upon receipt of TPSI’s invoice and supporting documentation for
all of TPSI’s Cover Costs incurred in obtaining replacement Products.  If TPSI decides to accept the off-spec
Products, the Parties shall agree on an appropriate reduction in the contract
price hereunder that reflects such Products’ market value and quality.

 

4.6                                 Quality
and Quantity Claims.  Any Claim
regarding the quality or quantity of Products delivered shall be waived unless
submitted to MSCG in writing, together with supporting documentation and
reasonable details of the facts on which the Claim is based, within [***] from
the delivery date.  The delivery date
shall be determined by the bill of lading or pipeline meter ticket, as
applicable.

 

4.7                                 Disclaimer
of Warranties.  OTHER THAN THE
WARRANTY OF TITLE AND CONFORMANCE OF THE PRODUCTS TO THEIR SPECIFICATIONS UNDER
ANY TRANSACTION, MSCG MAKES NO OTHER REPRESENTATION OR WARRANTY, WRITTEN OR
ORAL, EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY THAT THE
PRODUCTS WILL BE FIT, SUITABLE OR MERCHANTABLE

 

15

 

FOR A PARTICULAR PURPOSE.  MSCG EXPRESSLY DISCLAIMS ANY WARRANTY AGAINST
INFRINGEMENT OF ANY PATENT, TRADEMARK OR COPYRIGHT.

 

ARTICLE 5

PRICES

 

5.1                                 Deliveries
to the Pipeline Terminals.  The price
for the volumes of Products delivered to and received at the Pipeline Terminals
by TPSI via either the Colonial Pipeline or the Plantation Pipeline shall be
equal to [***]

 

5.2                                 Deliveries
to the Waterborne Terminals.  The
price for the volumes of Products delivered to and received at the Waterborne
Terminals by TPSI shall be equal to [***]

 

5.3                                 USCG
Deliveries.  The price for Products
delivered to TPSI [***] for TPSI’s delivery to its exchange partners under the TPSI
Exchange Agreements shall be equal to [***]

 

5.4                                 Alternate
Price Index.  If the price of a Transaction or
Buy/Sell Transaction is based on an industry reference index that ceases to be
published or is not published for any period applicable to calculation of the
Transaction price (the “Original Index”), the Parties shall cooperate in
good faith to select an alternative publication or other reference source that
reflects as nearly as possible the same information as published in the
Original Index.  If the Parties cannot
agree upon an alternative publication or other reference source within five (5)
Business Days from the date that the Original Index ceased to be published,
then the Parties shall determine the price for the affected Transaction (the “Relevant
Price”) as follows.  Within seven (7)
Business Days from the date that the Original Index ceased to be published,
each Party shall choose a Reference Market-Maker.  The two Reference Market-Makers jointly and
expeditiously shall choose a third Reference Market-Maker.  Each of the three Reference Market-Makers
shall make its determination of the Relevant Price, taking into consideration
the latest available quotation for the affected Product and any other information
that in good faith the Reference Market-Maker deems relevant.  The Relevant Price shall be the arithmetic
mean of the three prices determined by the Reference Market-Makers and shall be
binding and conclusive on the Parties absent manifest error.  Until a Relevant Price is established pursuant
to this Section 5.4, the Parties shall in good faith negotiate an
interim Transaction price that reasonably reflects the value of the
Product.  Failing such agreement, the
interim Transaction price shall be the [***]. 
Upon the determination of the Relevant Price, the Transaction price
shall be adjusted retroactively to the date on which the Original Index ceased
to be published, and any amounts payable by one Party to the other Party of the
aggregate net difference between the interim Transaction prices and the
Relevant Prices shall accrue interest at the Interest Rate.

 

ARTICLE 6

BUY/SELL
TRANSACTIONS

 

6.1                                 Buy/Sell
Transactions.  In addition to the
supply and purchase obligations set forth in Article 3, the Parties
shall purchase and sell Products at different locations as follows (the “Buy/Sell
Transactions”).  In the first part of
the Buy/Sell Transaction, TPSI shall deliver and sell to MSCG at an USGC
injection point on the Colonial Pipeline or the Plantation Pipeline, volumes of
Products equivalent to the volumes of such Products that TPSI receives from its
exchange partners at such location in the USGC, as included in Schedule 3.2.  Provided that TPSI has delivered the volumes
of Products in the USGC in the first part of the Buy/Sell 

 

16

 

Transaction, in the second part of the Buy/Sell
Transaction MSCG shall deliver and sell to TPSI equivalent volumes of Products
at the Pipeline Terminals.  The volumes
of Products subject to the Buy/Sell Transactions shall be nominated pursuant to
Section 3.2.

 

6.2                                 [***]

 

6.3                                 Payment.  Rather than remit payment to TPSI directly,
MSCG shall be entitled to treat the amount that it otherwise would pay TPSI for
Products delivered in the first part of the Buy/Sell Transaction as margin or
collateral that TPSI is required to deliver to MSCG under this Agreement and
hold such amounts in a designated margin account pursuant to Section 9.1(b).  Concomitantly, the amount that TPSI otherwise
would pay MSCG for the Products delivered in the second part of the Buy/Sell
Transaction shall be deducted from the amount of margin or collateral held in
such account.  However, TPSI shall pay
MSCG [***].

 

ARTICLE 7

INVOICING AND
PAYMENT

 

7.1                                 Daily
lnvoicing.  Each Business Day by 2:00
p.m. ET, TPSI shall prepare and deliver to MSCG a summary of the volumes
delivered to the Pipeline Terminals and the Waterborne Terminals and purchased
and sold pursuant to the TPSI Exchange Agreements and under the Buy/Sell
Transactions, by grade of Product and Terminal, for all Products delivered to
and received by TPSI on the preceding day (or days in the case of deliveries
made on non-Business Days), in each case as evidenced by appropriate
documentation supporting such deliveries. 
MSCG then shall prepare and issue to TPSI by 5:00 p.m. ET the following
Business Day a consolidated invoice for the volumes delivered to the Pipeline
Terminals and the Waterborne Terminals, the volumes delivered in the second
part of the Buy/Sell Transactions and the volumes supplied pursuant to the TPSI
Exchange Agreements.  Each Business Day
by 2:00 p.m. ET, TPSI shall prepare and issue to MSCG a consolidated invoice
for the Products sold to MSCG in the first part of the Buy/Sell Transactions.  The invoices shall reflect the prices calculated
in accordance with Article 5 and Article 6, and, [***],
the provisional prices calculated in accordance with Section 7.2.

 

7.2                                 Provisional
Pricing and [***] True-Up.  When the [***],
the invoice shall reflect a provisional price. 
[***].

 

7.3                                 [***]

 

7.4                                 Disputed
Invoices.  If a Party in good faith
disputes the amount of any invoice issued by the other Party, it shall pay the
undisputed portion of the invoice by the due date and inform the other Party in
writing why it disagrees with the balance of the invoice amount.  The Parties shall cooperate in resolving the
dispute expeditiously.  If the Parties
agree that the disputing Party owes some or all of the disputed amount, such
Party shall pay such amount, together with interest at the Interest Rate from
the original due date, within [***] from the date of their agreement.

 

7.5                                 Interest.  Except as provided in Section 7.4,
interest shall accrue on late payments under this Agreement or any Transaction
at the Default Interest Rate from the date that payment is due until the date
that payment is actually received by the owed Party.  The payment of

 

17

 

interest shall not be construed as either Party’s
agreement to extend credit to the other Party or to extend the payment due
date.

 

7.6                                 [***]

 

ARTICLE 8

[***]

 

[***]

 

ARTICLE 9

FINANCIAL
RESPONSIBILITY

 

9.1                                 Letter
of Credit.

 

(a)                                  At
Closing, and in accordance with Section 10.3, TPSI agrees to obtain
a Letter of Credit for the benefit of MSCG, in the amount of [***].  At all times during the Term of this
Agreement, TPSI shall be required to maintain the Letter of Credit in a minimum
amount of [***].

 

(b)                                 At
all times and from time to time during the Term of this Agreement, TPSI shall
be required to post margin or collateral to MSCG, in the form of an increase in
the amount of the Letter of Credit, in an amount that in the aggregate equals
or exceeds MSCG’s exposure in excess of the trade credit then provided to TPSI;
provided, however, that cash margin may be provided by MSCG on
TPSI’s behalf in a designated margin account pursuant to Section 6.3.  For this purpose, MSCG’s exposure shall equal
the sum of [***].

 

(c)                                  MSCG
shall have the discretion to increase or decrease the trade credit that it
provides TPSI at any time or from time to time during the Term of this
Agreement.

 

(d)                                 TPSI
shall deliver to MSCG an increase in the amount of the Letter of Credit in
accordance with this Section 9.1 within [***] of a request
therefor.

 

9.2                                 Guaranty.  At Closing, the Guarantor shall provide a
Guaranty of TPSI’s Obligations in form and substance reasonably acceptable to
MSCG.  TPSI shall cause its Guarantor to
provide an amended Guaranty in a form and substance reasonably acceptable to
MSCG on or before the effective date of any transfer and assignment of this
Agreement by TPSI to one of its Affiliates.

 

9.3                                 Provision
of Financial Information.  MSCG may
request that TPSI provide it with information sufficient to enable MSCG to
ascertain TPSI’s or its Guarantor’s current financial condition and for MSCG to
assure itself of TPSI’s and its Guarantor’s ability to perform their
Obligations under this Agreement and the Guaranty, respectively; provided,
however, that TPSI shall not be required to provide information that is
not kept in the ordinary course of its business or otherwise is not reasonably
available.  MSCG shall abide by any
confidentiality obligations that TPSI or its Guarantor may reasonably impose in
connection with the disclosure of such financial information.

 

18

 

9.4                                 Notification
of Certain Events.

 

(a)                                  TPSI
shall notify MSCG within one (1) Business Day of any of the following events:

 

(i)                                     TPSI’s
binding agreement to sell, lease, sublease, transfer or otherwise dispose of,
or grant any Person (including an Affiliate) an option to acquire, in one
transaction or a series of related transactions, all or a material portion of
its Products marketing and distribution business;

 

(ii)                                  TPSI
or its Guarantor consolidates or amalgamates with, merges with or into, or
transfers all or substantially all of its assets to, another entity (including
an Affiliate); or

 

(iii)                               any event that could
have a Material Adverse Effect on TPSI.

 

(b)                                 MSCG
shall notify TPSI within one (1) Business Day of any of the following events:

 

(i)                                     MSCG
consolidates or amalgamates with, merges with or into, or transfers all or
substantially all of its assets to, another entity (including an Affiliate); or

 

(ii)                                  any
event that could have a Material Adverse Effect on MSCG.

 

9.5                                 Assurances
of Performance.

 

(a)                                  MSCG
may, in its sole discretion and upon notice to TPSI or its Guarantor, require
that TPSI or its Guarantor provide it with adequate assurances of the ability
of TPSI or its Guarantor to perform any of its Obligations under this Agreement
or under the Guaranty, respectively, in an amount determined in a commercially
reasonable manner but in any event in an amount not to exceed [***], (i) if
MSCG determines that reasonable grounds for insecurity exist with respect to
TPSI’s or its Guarantor’s ability to perform its obligations under this
Agreement or a Guaranty, respectively, or (ii) upon the occurrence of an event
that could have a Material Adverse Effect on TPSI.

 

(b)                                 Adequate
assurance means security in an amount (subject to the limitations of Section 9.5(a))
and in a format and from an entity acceptable to MSCG, each as determined in
MSCG’s sole discretion, in any of the following forms, as may be acceptable to
MSCG in its sole discretion:  an increase
in the Letter of Credit or, at TPSI’s option, such other security as may be
acceptable to MSCG.  Unless MSCG
specifies a later time period, TPSI or its Guarantor shall furnish the required
security within [***] following receipt of MSCG’s written demand.

 

(c)                                  The
failure of TPSI or its Guarantor to provide adequate assurances pursuant to
this Section 9.5 within the time frame specified shall constitute
an Event of Default under Article 20.

 

19

 

ARTICLE 10

PRE-CLOSING COVENANTS

 

10.1                           Due
Diligence.  On and after the
Effective Date and until the Closing Date, TPSI shall continue to afford to
MSCG and its officers, employees, agents and authorized representatives access
during normal business hours to its financial and operating records, in order
that MSCG may undertake such factual, financial, accounting, technical or legal
due diligence investigation that MSCG considers desirable.  TPSI has made, and shall continue to make,
available to MSCG personnel knowledgeable with respect thereto, and the
officers, employees and representatives of TPSI shall furnish MSCG with such
operating, financial and accounting data or information as may be reasonably
requested by MSCG in order that MSCG may complete such due diligence investigation,
with the results of such investigation reasonably satisfactory to MSCG.

 

10.2                           Completion
of Due Diligence.  The due diligence
review to be undertaken by MSCG as described in Section 10.1 shall
be completed no later than five (5) days prior to the Closing Date, unless
otherwise mutually agreed in writing.

 

10.3                           Letter
of Credit Notification.  To permit
TPSI a sufficient period of time within which to obtain the issuance of the
Letter of Credit required by Section 9.1(a) to be delivered by TPSI
at Closing pursuant to Section 11.3, MSCG shall, not later than ten
(10) days prior to Closing, provide TPSI with the suggested form and content of
the Letter of Credit that MSCG deems to be reasonably acceptable.

 

10.4                           [***]

 

10.5                           TPSI
Supply Agreements.  TPSI shall
utilize commercially reasonable efforts to assist MSCG in obtaining either the
assignment of or the benefits of TPSI’s current supply/exchange agreements with
[***].

 

10.6                           Press
Releases/Announcements/Filings. 
Prior to Closing, neither Party shall make any public announcement or
issue any press release regarding this Agreement or the Related Agreements, the
transactions contemplated hereby or thereby, or the status of negotiations
between the Parties regarding the same, or otherwise release or file such
documents with any Governmental Authority without first conferring with the
other Party.  If the Parties are unable
to agree as to the text or time of release of any such announcement, or the
release or filing of such documents, no announcement, release or filing shall
be made unless the Party proposing the announcement, release or filing is
advised by legal counsel that the announcement, release or filing is legally
required to be made, in which case the other Party shall be immediately advised
of the text and time of release of the announcement, or the timing with respect
to the release or filing of the documents, as the case may be.  The Parties further agree to consult with
each other on all press releases and announcements to be issued at Closing concerning
the transactions contemplated by this Agreement and the Related Agreements.

 

20

 

ARTICLE 11

CLOSING

 

11.1                           Related
Agreements.  In connection with
execution of this Agreement, the Parties, at Closing, agree to enter into and
execute the following agreements (collectively, the “Related Agreements”):

 

(a)                                  The
Terminaling Services Agreements, substantially in the form of Exhibits A-1,
A-2 and A-3.

 

(b)                                 A
Warrant substantially in the form of Exhibit B.

 

(c)                                  A
Registration Rights Agreement substantially in the form of Exhibit C.

 

(d)                                 [***]

 

11.2                           The
Closing.  The closing of the
transactions contemplated by this Agreement (the “Closing”) shall take
place at the offices of TPSI located at 1670 Broadway, Suite 3100, Denver,
Colorado 80202, commencing at 10:00 a.m. Mountain Time on November 22,
2004, or such other date as the Parties may mutually agree (the “Closing
Date”).

 

11.3                           Deliveries
at Closing.

 

(a)                                  At
Closing, TPSI shall execute and deliver or cause to be executed and delivered:

 

(i)                                     Each
of the Related Agreements referenced in Section 11.1.

 

(ii)                                  The
Letter of Credit required pursuant to Section 9.1.

 

(iii)                               The Guaranty required
pursuant to Section 9.2.

 

(iv)                              Copies
of resolutions of the Board of Directors of TransMontaigne Inc. and TPSI
approving and adopting this Agreement and the Related Agreements, the
transactions contemplated herein and therein and authorizing the execution and
delivery thereof, certified by the secretary or assistant secretary of each
such entity to be true and correct and in force and effect as of the Closing
Date.

 

(v)                                 An
opinion of counsel in a form and substance satisfactory to MSCG covering such
matters as MSCG shall require, including that (A) TPSI has duly authorized the
execution, delivery and performance of this Agreement and the Related
Agreements, and (B) this Agreement and the Related Agreements constitute the
legally valid and binding obligations of TPSI enforceable against TPSI in
accordance with its terms (subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general
application regardless of whether enforcement is sought in a Proceeding in
equity or at law).

 

21

 

(vi)                              A
certificate or certificates signed by its Chief Executive Officer, Chief
Financial Officer or other appropriate officers of TPSI dated as of the Closing
Date, in form and substance satisfactory to MSCG, certifying as to (A) the
fulfillment of each of the conditions to be satisfied by TPSI as set forth in Section 13.1,
(B) the truth and accuracy of the representations and warranties set forth in
this Agreement and the Related Agreements as of the Closing Date, and (C) the
incumbency and specimen signature of the officers of TPSI executing this
Agreement and the Related Agreements.

 

(vii)                           Such other documents and
instruments as may be reasonably necessary to consummate the transactions
contemplated herein.

 

(b)                                 At
Closing, MSCG shall execute and deliver or cause to be executed and delivered:

 

(i)                                     Each
of Related Agreements referenced in Section 11.1.

 

(ii)                                  An
opinion of counsel in a form and substance satisfactory to TPSI covering such
matters as TPSI shall require, including that (A) MSCG has duly authorized the
execution, delivery and performance of this Agreement and the Related
Agreements, and (B) this Agreement and the Related Agreements constitute the
legally valid and binding obligations of MSCG enforceable against MSCG in
accordance with its terms (subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general
application regardless of whether enforcement is sought in a Proceeding in
equity or at law).

 

(iii)                               A certificate or
certificates signed by its Chief Executive Officer, Chief Financial Officer or
other appropriate officers of MSCG dated as of the Closing Date, in form and
substance satisfactory to TPSI, certifying as to (A) the fulfillment of each of
the conditions to be satisfied by MSCG as set forth in Section 13.2,
(B) the truth and accuracy of the representations and warranties set forth in
this Agreement and the Related Agreements as of the Closing Date and (C) the
incumbency and specimen signature of the officers of MSCG executing this
Agreement and the Related Agreements, and attaching copies of the resolutions
authorizing MSCG to enter and execute this Agreement and each of the Related
Agreements.

 

(iv)                              Such
other documents and instruments as may be reasonably necessary to consummate
the transactions contemplated herein.

 

ARTICLE 12

REPRESENTATIONS
AND WARRANTIES 

 

12.1                           Mutual
Representations and Warranties.  Each
Party represents and warrants to the other Party as of the Commencement Date
and the date of each Transaction under this Agreement as follows:

 

22

 

(a)                                  It
is an “Eligible Contract Participant” as defined in Section 1a(12) of the
Commodity Exchange Act, as amended.

 

(b)                                 It
is a “forward contract merchant” in respect of this Agreement and each
transaction hereunder is a forward contract for purposes of the Bankruptcy
Code.

 

(c)                                  Neither
it nor any of its Affiliates has been contacted by or negotiated with any
finder, broker or other intermediary in connection with the negotiations
relating to this Agreement or the Related Agreements and the transactions
contemplated hereby and thereby who is entitled to any compensation with
respect thereto.

 

(d)                                 It
is duly organized and validly existing under the Applicable Laws of the
jurisdiction of its organization or incorporation and in good standing under
such Applicable Laws.

 

(e)                                  It
has the corporate, governmental or other legal capacity, authority and power to
execute this Agreement and the Related Agreements, to deliver this Agreement
and the Related Agreements and to perform its obligations under this Agreement
and the Related Agreements, and has taken all necessary action to authorize the
foregoing.

 

(f)                                    The
execution, delivery and performance obligations referenced in Section 12.1(e)
do not violate or conflict with any Applicable Law, any provision of its
constitutional documents, any order or judgment of any court or Governmental
Authority applicable to it or any of its assets, or any contractual restriction
binding on or affecting it or any of its assets.

 

(g)                                 All
governmental and other authorizations, approvals, consents, notices and filings
that are required to have been obtained or, to the extent not yet required, to
be obtained in the future or submitted by it in respect of this Agreement and
the Related Agreements, have been obtained or submitted and are in full force
and effect or, to the extent not yet required, will be submitted on a timely
basis, and all conditions of any such authorizations, approvals, consents,
notices and filings have been complied with.

 

(h)                                 Its
obligations under this Agreement and the Related Agreements constitute its
legal, valid and binding obligations, enforceable in accordance with its terms
(subject to applicable bankruptcy, reorganization, insolvency, moratorium or
similar laws affecting creditors’ rights generally and subject, as to
enforceability, to equitable principles of general application regardless of
whether enforcement is sought in a Proceeding in equity or at law).

 

(i)                                     No
Event of Default under Article 20 with respect to it or Potential
Event of Default has occurred and is continuing, and no such event or
circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or the Related Agreements.

 

(j)                                     There
is not pending or, to its knowledge, threatened against it or any of its
Affiliates any Proceeding that is likely to affect the legality, validity or
enforceability against it of this Agreement or its ability to perform its
obligations under this Agreement or the Related Agreements.

 

23

 

(k)                                  It
is not relying upon any representations of the other Party other than those
expressly set forth in this Agreement or the Related Agreements.

 

(l)                                     It
has entered into this Agreement and the Related Agreements as principal (and
not as advisor, agent, broker or in any other capacity, fiduciary or otherwise)
and with a full understanding of the material terms and risks of this Agreement
and the Related Agreements, and has made its own independent decision to enter
into this Agreement and as to whether this Agreement and the Related Agreements
are appropriate or suitable for it based upon its own judgment and upon advice
from such advisers as it has deemed necessary.

 

(m)                               It
is capable of assessing the merits of and understanding (on its own behalf or
through independent professional advice) this Agreement and the Related
Agreements, understands and accepts the terms, conditions and risks of this
Agreement and the Related Agreements, and is capable of assuming, and assumes,
the risks of this Agreement and the Related Agreements.

 

(n)                                 The
other Party (i) is acting solely in the capacity of an arm’s-length contractual
counterparty with respect to this Agreement and the Related Agreements, (ii) is
not acting as a financial advisor or fiduciary or in any similar capacity with respect
to this Agreement and the Related Agreements and (iii) has not given to it any
assurance or guarantee as to the expected performance or result of this
Agreement and the Related Agreements.

 

12.2                           Additional
Representation and Warranty of TPSI. 
[***].

 

ARTICLE 13

CONDITIONS TO
CLOSING

 

13.1                           Conditions
to MSCG’s Obligations.  The
obligation of MSCG to supply, deliver
and sell Products to TPSI pursuant to this Agreement is subject to the
satisfaction, at or before the Closing, of the following conditions:

 

(a)                                  Compliance,
Accuracy of Representations.  TPSI
shall not be in breach of any of its covenants, agreements, and conditions
required by this Agreement or the Related Agreements to be performed,
satisfied, or complied with by it on or before the Closing, and all of the
representations and warranties of TPSI in this Agreement and the Related
Agreements or in any certificate, document, instrument or writing delivered to
MSCG by or on behalf of TPSI under this Agreement and the Related Agreements
shall be true and correct on and as of the Closing Date with the same force and
effect as though they had been made on the Closing Date.

 

(b)                                 No
Orders or Lawsuits.  No order, writ,
injunction or decree shall have been entered and be in effect by any court of
competent jurisdiction or any Governmental Authority, and no Applicable Law
shall have been promulgated or enacted and be in effect, that restrains,
enjoins or invalidates the transactions contemplated hereby or under the
Related Agreements.  No Proceeding initiated
by any Person shall be pending before any court or Governmental Authority
seeking to restrain or prohibit or declare illegal, or

 

24

 

seeking substantial damages in connection with, the
transactions contemplated by this Agreement or the Related Agreements.

 

(c)                                  Third
Party Consents.  TPSI shall have
obtained all required consents and any other third party consents or waivers
necessary to consummate the transactions contemplated by this Agreement and the
Related Agreements.  Such consents (or in
lieu thereof, waivers), shall (i) be in form and substance reasonably
satisfactory to MSCG, (ii) not be subject to the satisfaction of any condition
that has not been satisfied or waived and (iii) be in full force and effect,
except where the failure to obtain any such consent (or in lieu thereof,
waiver) could not reasonably be expected, individually or in the aggregate with
other such failures, to materially adversely affect MSCG or otherwise result in
a diminution of the benefits of the transactions contemplated hereby or under
the Related Agreements to MSCG.

 

(d)                                 No
Material Adverse Effect.  Since the
Effective Date of this Agreement, there shall not have been a Material Adverse
Effect as to TPSI or its Guarantor.

 

(e)                                  Due
Diligence.  MSCG shall have completed
a due diligence investigation with results to its reasonable satisfaction.

 

(f)                                    Deliveries
of Documents.  TPSI shall have
delivered each of the documents required pursuant to Section 11.3(a).

 

(g)                                 [***]

 

13.2                           Conditions
to TPSI’s Obligations.  The
obligation of TPSI to receive and purchase Products from MSCG pursuant to this
Agreement is subject to the satisfaction, at or before the Closing, of the
following conditions:

 

(a)                                  Compliance;
Accuracy of Representations.  MSCG
shall not be in breach of any of its covenants, agreements, and conditions
required by this Agreement or the Related Agreements to be performed,
satisfied, or complied with by it on or before the Closing, and all of the
representations and warranties of MSCG in this Agreement and the Related
Agreements or in any certificate, document, instrument or writing delivered to
TPSI by or on behalf of MSCG under this Agreement and the Related Agreements
shall be true and correct on and as of the Closing Date with the same force and
effect as though they had been made on the Closing Date.

 

(b)                                 No
Orders or Lawsuits.  No order, writ,
injunction or decree shall have been entered and be in effect by any court of
competent jurisdiction or any Governmental Authority, and no Applicable Law
shall have been promulgated or enacted and be in effect, that restrains,
enjoins or invalidates the transactions contemplated hereby or under the
Related Agreements.  No Proceeding initiated
by any Person shall be pending before any court or Governmental Authority
seeking to restrain or prohibit or declare illegal, or seeking substantial
damages in connection with, the transactions contemplated by this Agreement or
the Related Agreements.

 

(c)                                  Third
Party Consents.  MSCG shall have
obtained all material third party consents or waivers necessary to consummate
the transactions contemplated by this

 

25

 

Agreement and the Related Agreements, all of such
consents and waivers being in form and substance reasonably satisfactory to
TPSI in its reasonable discretion.

 

(d)                                 No
Material Adverse Effect.  Since the
Effective Date of this Agreement, there shall not have been a Material Adverse
Effect as to MSCG.

 

(e)                                  Deliveries
of Documents.  MSCG shall have
delivered each of the documents required pursuant to Section 11.3(b).

 

(f)                                    [***]

 

ARTICLE 14

LIMITATIONS ON
LIABILITY

 

Notwithstanding any
provision to the contrary in this Agreement, the Parties’ liability for damages
is limited to direct, actual damages only and neither Party shall be liable for
specific performance, lost profits or other business interruption damages, or
special, consequential, incidental, punitive, exemplary or indirect damages, in
tort, contract or otherwise, of any kind, arising out of or in any way
connected with the performance, the suspension of performance, the failure to
perform or the termination of a Transaction or this Agreement.  Each Party acknowledges the duty to mitigate
damages.

 

ARTICLE 15

MOTOR FUEL
TAXES

 

15.1                           Liability
for Taxes.  Each Party represents
that it is registered with the IRS to engage in tax-free Transactions with
respect to taxable fuels.  Prior to the
scheduled delivery date, each Party shall provide the other Party with proper
federal, state or local notification, exemption or resale certificates or
direct pay permits as may be required or permitted by Applicable Law.  Notwithstanding the foregoing, and excluding
any Motor Fuel Taxes for which MSCG is legally responsible upon the importation
or resale of Products that MSCG stores at the Terminals pursuant to the
Terminaling Services Agreements (each substantially in the form of Exhibits
A-1, A-2 and A-3, respectively), should MSCG be liable to
report or remit any Motor Fuel Tax, TPSI shall reimburse and indemnify MSCG for
all such Motor Fuel Taxes, together with all penalties and interest thereon,
paid or incurred by MSCG, upon receipt of MSCG’s invoice; provided that MSCG
has timely given notice to TPSI of TPSI’s obligation to reimburse MSCG for such
Motor Fuel Tax and MSCG has timely remitted and reported such Motor Fuel Taxes.

 

15.2                           Property
Taxes.  If any Property Taxes are
assessed against Products sold under this Agreement by any Governmental
Authority, the Party having title to the Products at the time such tax
liability accrues shall be responsible for payment therefor.

 

15.3                           Import
Duties.  MSCG shall assume
responsible for all duties, charges and other fees that may be assessed by any
Governmental Authority upon importation of the Products into the United States.

 

26

 

ARTICLE 16

COMPLIANCE
WITH LAWS

 

16.1                           Mobile
Sources Compliance.  Each Party shall
comply with all Applicable Law relating to or regarding the quality, integrity,
testing, distribution and marketing of reformulated gasoline and blendstocks,
conventional gasoline, gasoline additives, diesel fuel, No. 2 heating oil and
any other motor fuel or fuel product that may be subject to such regulations,
including the provisions and requirements of 40 C.F.R. Parts 70 through 80,
including maintaining records that are required to be maintained and that
demonstrate compliance with the foregoing Applicable Laws.  Each Party shall make such records available
to the other Party upon its request. 
Each Party also shall immediately notify the other Party of any
violation or alleged violation with respect to the Products sold pursuant to
any Transaction and, upon request, shall provide the other Party with all
evidence of environmental inspections or audits by any Governmental Authority
with respect to such Products.  MSCG
warrants that all Products delivered by it pursuant to this Agreement shall
comply with all requirements and standards as may be applicable to such
Products when delivered to TPSI based upon the place of the Products’ intended
use, if known to MSCG, and that it shall provide all required documentation
regarding such delivery, including any required product transfer
documents.  MSCG shall have in effect and
maintain a Quality Assurance Program under 40 C.F.R. Part 80.

 

16.2                           Pollution
Prevention and Responsibility.  Upon
the occurrence of any spill or discharge reportable under Applicable Law or
other environmental pollution in connection with any transfer, delivery,
transportation or receipt of Products, the Parties shall take any action
required under Applicable Law, including actions to prevent or mitigate
resulting pollution damage.  Even if not
required by Applicable Law, a Party may take such actions to prevent or
mitigate pollution damage as it deems appropriate or is required by any
Governmental Authority, in which case such Party shall notify the other Party
immediately of any such actions, and shall take such actions in accordance with
the Oil Pollution Act of 1990, as amended, and any other Applicable Law, or as
may be directed by the U.S. Coast Guard or any other Governmental
Authority.  If either Party incurs costs
to clean up or contain a spill or discharge or to prevent or mitigate resulting
pollution damage, such Party reserves any rights provided by law to recover
such costs from the other Party or from any third party.  If a third party is legally liable for such
costs and expenses, each Party shall cooperate with the other Party for the
purpose of obtaining reimbursement from such third party.  Each Party also shall cooperate with the
other Party for the purpose of obtaining reimbursement from any other
applicable entity or source under federal or state law.  Each Party acknowledges that (i) no provision
under this Agreement is intended to imply that a Party assumes any pollution
liability for the benefit of or on behalf of the other Party and (ii) a Party
shall not be liable to indemnify the other Party for any Liabilities in
connection therewith, except as may be imposed under federal or state law on an
owner of oil or voyage charterer.

 

16.3                           Applicable
Law.  Each Party shall comply with
all Applicable Law with respect to the performance of its Obligations under
this Agreement.

 

ARTICLE 17

FORCE MAJEURE

 

17.1                           Event
of Force Majeure.  Neither Party
shall be liable to the other Party if it is rendered unable by an event of
Force Majeure to perform in whole or in part any obligation or

 

27

 

condition of a Transaction or this Agreement, for so
long as the event of Force Majeure exists and to the extent that performance is
hindered by the event of Force Majeure; provided, however, that
the Party unable to perform shall use commercially reasonable efforts to avoid
or remove the event of Force Majeure. 
During the period that a Party’s performance of its obligations has been
suspended in whole or part by reason of an event of Force Majeure, the other
Party likewise may suspend the performance of all or part of its obligations
related to the Transactions affected by the event of Force Majeure to the
extent that such suspension is commercially reasonable, except for any payment
and indemnification obligations related to Products received prior to such
event.

 

17.2                           Notice
of Force Majeure.  The Party rendered
unable to perform shall inform the other Party by oral notification as soon as
practicable but no later than within one (1) Business Day after learning of the
occurrence of a Force Majeure event, including, to the extent feasible, the
details and the expected duration of the Force Majeure event and the volume of
Products affected.  Promptly thereafter,
the Party rendered unable to perform shall confirm such information in writing.  Such Party also shall promptly notify the
other Party when the Force Majeure event is terminated.

 

17.3                           Termination
of Transactions.  If a Party’s
performance of any specific Transaction is suspended due to an event of Force
Majeure in excess of [***] from the date that notice of such event is given,
and so long as such event is continuing, either Party, in its sole discretion,
may terminate such Transaction by written notice to the other Party, and
neither Party shall have any further liability to the other Party in respect of
such Transaction except for the rights and remedies previously accrued.

 

17.4                           Alternative
Supplies in the Event of Force Majeure. 
Notwithstanding anything herein to the contrary, in the event MSCG
should notify TPSI that as a result of an event of Force Majeure it will be
unable meet its delivery obligations as described in Section 3.1(f),
Section 3.1(g) or Section 3.4(a), TPSI shall have the
right, in its sole discretion, but only until such time as TPSI shall have
received notice that the event of Force Majeure declared by MSCG no longer is
continuing, to procure from alternative sources volumes of Products to replace
all or any portion of the volumes that MSCG is unable to deliver.  [***].

 

ARTICLE 18

AUDIT RIGHTS

 

18.1                           Books
and Records.  Each Party shall keep
accurate books of account and to record all sales and other evidence of
transactions in accordance with generally accepted accounting principles in the
United States.  All records relating to
the transactions contemplated by this Agreement, including any stored
electronically, shall be kept by each Party for two (2) years at such Party’s
office and shall be made available to the other Party for inspection at such
offices upon reasonable notice during each Party’s regular business hours.

 

18.2                           Audit
True-Up.  A Party or its authorized
representative (who is acceptable to the other Party) may, at the inspecting
Party’s expense, conduct an independent review of the manner in which the
pricing and payment for Products during each month was calculated.  If, as a result of such review, it is
determined that there has been an overpayment by TPSI, then MSCG shall offset
against any amounts then due and owing by TPSI to MSCG under this Agreement the
amount of the overpayment, together with interest on such amount at the
Interest Rate from date such overcharges occurred under the date payment is
made.  If, as a result of such review, it
is

 

28

 

determined that there has been an underpayment by
TPSI, then such underpayment will become immediately due and payable to MSCG
with interest at the Interest Rate from the date said payment was due until the
date that payment is made.

 

ARTICLE 19

INDEMNIFICATION

 

19.1                           Duty
to Indemnify.  Each Party (the “Indemnifying
Party”) shall indemnify and hold the other Party, its Affiliates, and their
employees, directors, officers, representatives, agents and contractors
(collectively, the “Indemnified Party”) harmless from and against any
and all Liabilities arising from the Indemnifying Party’s (i) breach of this Agreement,
(ii) failure to comply with Applicable Law with respect to the sale,
transportation, storage, handling or disposal of the Products, unless and to
such extent that such liability results from the Indemnified Party’s negligence
or willful misconduct or (iii) representations, covenants or warranties made
under this Agreement which prove to be materially incorrect or misleading when
made.

 

19.2                           No
Third Party Rights.  The Parties’
obligations to defend, indemnify and hold each other harmless under the terms
of this Agreement shall not vest any rights in any third party, whether a
Governmental Authority or private entity, nor shall they be considered an
admission of liability or responsibility for any purposes other than those
enumerated in this Agreement.

 

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

 

19.4                           Claim
Procedure.  The Indemnifying Party
shall have the right to assume the defense, at its own expense and by its own counsel,
of any Third Party Claim; provided, however, that such counsel is
reasonably acceptable to the Indemnified Party. 
Notwithstanding the Indemnifying Party’s appointment of counsel to
represent an Indemnified Party, the Indemnified Party shall have the right to
employ separate counsel, and the Indemnifying Party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the Indemnifying Party to represent the Indemnified Party would
present such counsel with a conflict of interest or (ii) the Indemnifying Party
shall not have employed counsel to represent the Indemnified Party within a
reasonable time after notice of the institution of such Third Party Claim.  If requested by the Indemnifying Party, the
Indemnified Party agrees to reasonably cooperate with the Indemnifying Party
and its counsel in contesting any Claim or Proceeding that the Indemnifying
Party defends, including, if appropriate, making any counterclaim or
cross-complaint.  All costs and expenses
incurred in connection with the Indemnified Party’s cooperation shall be borne
by the Indemnifying Party.

 

19.5                           Settlement.  No Third Party Claim may be settled or
compromised (i) by the Indemnified Party without the consent of the
Indemnifying Party or (ii) by the Indemnifying Party without the consent of the
Indemnified Party.  Notwithstanding the
foregoing, an Indemnifying Party shall not be entitled to assume responsibility
for and control of any

 

29

 

Proceeding if such Proceeding involves an Event of
Default by the Indemnifying Party under this Agreement which shall have
occurred and be continuing.

 

19.6                           Insurance.  The mere purchase and existence of insurance
does not reduce or release either Party from any liability incurred or assumed
under this Agreement or any Transaction.

 

ARTICLE 20

DEFAULT AND
TERMINATION

 

20.1                           Event
of Default.  Notwithstanding any
other provision of this Agreement, the Related Agreements, any Other Commodity
Agreement or any Specified Agreement, a Default or Event of Default shall be
deemed to occur under this Agreement when:

 

(a)                                  Either
Party fails to make payment when due under this Agreement within two (2)
Business Days of a written demand therefor.

 

(b)                                 Any
representation or warranty, contained in this Agreement, the Related
Agreements, any Other Commodity Agreement or any Specified Agreement shall
prove untrue in any material respect on or as of the date it was made or was
deemed to have been made or repeated.

 

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

 

(d)                                 Either
Party defaults under any of the Related Agreements or any Other Commodity
Agreement (howsoever such default is defined), which is not cured within the applicable
time period, if any; provided, however, the Party defaulting
under such Related Agreement or Other Commodity Agreement may not claim the
default as an Event of Default under this Agreement.

 

(e)                                  TPSI
fails to amend the Letter of Credit or fails to provide satisfactory security
or assurances of performance in accordance with Article 9.

 

(f)                                    The
Guarantor (i) fails to satisfy, perform or comply with any obligation in
accordance with such Guaranty if such failure continues after any applicable
grace or notice period, (ii) breaches any representation, covenant or warranty
or any representation proves to have been incorrect or misleading in any
material respect under the Guaranty, which is not cured to MSCG’s satisfaction,
in its sole discretion, within any applicable grace or notice period or (iii)
repudiates, disclaims, disaffirms or rejects, in whole or part, any obligation
under the Guaranty, or challenges the validity of the Guaranty.

 

(g)                                 Either
Party or the Guarantor becomes Bankrupt.

 

(h)                                 Any
material covenant, agreement or obligation of any Party contained in or
evidenced by this Agreement, any Related Agreement, any Other Commodity

 

30

 

Agreement or any Specified Agreement, shall cease to
be enforceable in accordance with its terms.

 

(i)                                     Either
Party to this Agreement, any Related Agreement, any Other Commodity Agreement
or any Specified Agreement, shall repudiate, deny or disaffirm its obligations
under this Agreement, any Related Agreement, any Other Commodity Agreement or
any Specified Agreement.

 

(j)                                     This
Agreement, any Related Agreement, any Other Commodity Agreement or any
Specified Agreement is canceled, terminated, revoked or rescinded without the
express prior consent of the other Party, or any Proceeding shall have been
commenced by any Person (other than either Party) seeking to cancel, revoke,
rescind or disaffirm the obligations of any Party to this Agreement, any of the
Related Agreements or any Other Commodity Agreement or any Specified Agreement
(unless such Party is contesting the Proceeding in good faith and such
Proceeding is withdrawn or dismissed with prejudice within fifteen (15) days).

 

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

 

(l)                                     Either
Party or the Guarantor (i) defaults under a Specified Agreement and, after
giving effect to any applicable notice requirement or grace period, there
occurs a liquidation of, an acceleration of obligations under, or an early
termination of, that Specified Agreement or (ii) defaults, after giving effect
to any applicable notice requirement or grace period, in making any payment or
delivery due on the last payment, delivery or exchange date of, or any payment
on early termination of, a Specified Agreement (or such default continues for
at least two (2) Business Days if there is no applicable notice requirement or
grace period); provided, however, the Party or Guarantor
defaulting under such Specified Agreement may not claim the default as an Event
of Default under this Agreement.

 

(m)                               The
failure of TPSI or its Guarantor to make payment when due or other event of
default under one or more agreements or instruments relating to Specified
Indebtedness in an aggregate amount (individually or collectively) of not less
than $25 million, which has resulted in such Specified Indebtedness becoming or
capable of becoming due and payable under such agreements or instruments before
it would otherwise have been due and payable, or defaults in making one or more
payments on the due date thereof in an aggregate amount (individually or
collectively) of not less than $25 million under such agreements or instruments
(after giving effect to any applicable notice requirement or grace period).

 

20.2                           Remedies
Upon Event of Default. 
Notwithstanding any other provision of this Agreement, the Guaranty, any
Related Agreement, any Other Commodity Agreement or any Specified Agreement,
upon the occurrence of an Event of Default with respect to either Party or its
Guarantor (the “Defaulting Party”), the other Party (the “Performing
Party”) may, in its sole discretion, in addition to all other remedies
available to it and without incurring any Liabilities to the Defaulting Party,
the Guarantor or to third parties (for demurrage or any other costs arising

 

31

 

from delay or otherwise), the Performing Party may do
any one or more of the following: (i) withhold or suspend its Obligations under
this Agreement and any Transaction without prior notice to the Defaulting
Party, (ii) proceed against the Defaulting Party or its Guarantor or both for
damages occasioned by the Defaulting Party’s or its Guarantor’s failure to
perform, (iii) upon one (1) Business Day’s prior notice to the Defaulting
Party, immediately terminate and liquidate all Transactions between the Parties
by calculating Settlement Payments in the manner set forth in Section 20.3
and (iv) exercise its rights of liquidation and setoff with respect to all
Other Commodity Agreements and Specified Agreements as set forth in Section 20.4.  Notwithstanding the foregoing, in the case of
an Event of Default described in Section 20.1(g), no prior notice
shall be required.

 

20.3                           Early
Termination of Transactions.

 

(a)                                  When
an Event of Default has occurred and is continuing, the Performing Party may,
by notice given to the Defaulting Party, designate a date not earlier than the
date of such notice (“Early Termination Date”) on which all Transactions
shall terminate and the Performing Party shall then determine the Liquidation
Amount as of the Termination Determination Date.  For purposes of this Section 20.3,
the phrase “all Transactions” means only those Preliminary Forecasted Pipeline
Volumes or Adjusted Forecasted Pipeline Volumes and those Preliminary
Forecasted Waterborne Volumes or Adjusted Forecasted Waterborne Volumes that
have been nominated to MSCG under Section 3.2, Section 3.3
and Section 6.1 prior to and including the Early Termination
Date.  The Performing Party shall notify
the Defaulting Party of the Liquidation Amount due from or due to the Defaulting
Party, after taking into account any collateral or margin held by either Party
(“Termination Payment”), to be paid as provided in Section 20.3(b).

 

(b)                                 As
soon as reasonably practicable after the Early Termination Date, the Performing
Party shall provide the Defaulting Party with a statement showing, in
reasonable detail, the calculation of the Liquidation Amount and the
Termination Payment.  If the Defaulting
Party owes the Termination Payment to the Performing Party, the Defaulting
Party shall pay the Termination Payment on the first Business Day after it
receives the statement.  If the
Performing Party owes the Termination Payment to the Defaulting Party, the
Performing Party shall pay the Termination Payment once it has reasonably
determined all amounts owed by the Defaulting Party to it under all
Transactions and Other Commodity Agreements and its rights of setoff under Section 20.4.

 

20.4                           Setoff.

 

(a)                                  The
occurrence of an Early Termination Date under this Agreement or an Event of
Default as described in Sections 20.1(h), (i), (j), (k),
(l) and (m) shall constitute a material breach and an event of
default, howsoever described, under all Other Commodity Agreements and under
all Specified Agreements.  The Performing
Party (or any of its Affiliates or the Guarantor in the case of a Specified
Agreement) may, by giving a notice to the Defaulting Party, designate an Early
Termination Date for all Other Commodity Agreements or all Specified Agreements
or both and, upon such designation, terminate, liquidate and otherwise close
out all Other Commodity Agreements or all Specified Agreements or both.

 

32

 

(b)                                 If
the Performing Party elects to designate an Early Termination Date under this Section 20.4,
the Performing Party shall calculate, in accordance with the terms set forth in
such Other Commodity Agreements and Specified Agreements, the amounts, whether
positive or negative, due upon early termination under each Other Commodity
Agreement and Specified Agreement and shall determine the aggregate sum of such
amounts, whether positive or negative (“Other Agreement Termination Amount”).  If a particular Other Commodity Agreement or
Specified Agreement does not provide a method for determining what is owed upon
early termination, then the amount due upon early termination shall be
determined pursuant to Section 20.3 as if such Other Commodity
Agreement or Specified Agreement were a Transaction.

 

(c)                                  If
the Other Agreement Termination Amount is a negative number, and the Performing
Party owes a Termination Payment to the Defaulting Party, the Performing Party
shall pay the Defaulting Party the Other Commodity Termination Amount at the
time of its payment of the Termination Payment under Section 20.3(b).  If the Other Agreement Termination Amount is
a positive number, the Defaulting Party shall pay the Performing Party such
Other Agreement Termination Amount on demand, provided, however,
that the Performing Party, at its election, may setoff any Termination Payment
owed by the Defaulting Party to the Performing Party pursuant to Section 20.3
against any Other Agreement Termination Amount owed by the Performing Party to
the Defaulting Party and may setoff any Other Agreement Termination Amount owed
to the Performing Party by the Defaulting Party against any Termination Payment
owed by the Performing Party to the Defaulting Party pursuant to Section 20.3.  The Performing Party shall notify the
Defaulting Party of any setoff effected under this Section 20.4.

 

20.5                           Non-Exclusive
Remedy.  The Performing Party may
enforce any of its remedies under this Agreement, any Other Commodity Agreement
or any Specified Agreement.  The
Performing Party’s rights under this Article 20 shall be in
addition to, and not in limitation or exclusion of, any other rights of setoff,
recoupment, combination of accounts, lien or other right which it may have,
whether by agreement, operation of law or otherwise, provided, however,
that (i) if the Performing Party elects to exercise its rights under Section 20.3,
it shall do so with respect to all Transactions, and (ii) if the Performing
Party elects to exercise its rights under Section 20.4 in respect
of Other Commodity Agreements or in respect of Specified Agreements or both, it
shall do so with respect to all Other Commodity Agreements or all Specified
Agreements or both.  No delay or failure
on the part of a Performing Party to exercise any right or remedy shall
constitute an abandonment of such right or remedy and the Performing Party
shall be entitled to exercise such right or remedy at any time after an Event
of Default has occurred.

 

20.6                           Indemnification.  The Defaulting Party shall indemnify and hold
harmless the Performing Party for all Liabilities incurred as a result of the
Default or in the exercise of any remedies under this Article 20.  A Party shall reimburse the other Party for
its costs and expenses, including reasonable attorneys’ fees, incurred in
connection with the other Party’s enforcement of, suing for or collecting any
amounts payable by it under this Agreement.

 

33

 

ARTICLE 21

TERMINATION
PROCESS

 

21.1                           Expiration
or Termination for Other Than an Event of Default.

 

(a)                                  Prior
to expiration of the Term of this Agreement or upon early termination of this
Agreement pursuant to Section 2.3, the Parties shall mutually agree
on a termination date (at which time MSCG shall cease supplying Products to
TPSI for marketing and distribution at the Terminals), to occur on the last day
of [***].  TPSI shall purchase all
Products that were in transit to the Terminals on such termination date, when
such Products are received at the Terminals (subject to the tolerances set
forth in Section 3.2(d) and Section 3.3(e)), and such
purchases shall be otherwise subject to the terms and conditions, including
pricing and the Letter of Credit requirements, set forth in this Agreement.

 

(b)                                 Upon
expiration or termination of this Agreement (other than due to the declaration
of an Early Termination Date), MSCG shall calculate a final accounting and
true-up of all amounts owed by one Party to the other Party hereunder and shall
prepare an invoice with appropriate supporting documentation.  Such invoice shall be payable by the owing
Party within [***] after the date of receipt of invoice.

 

21.2                           [***]

 

ARTICLE 22

GOVERNING LAW
AND JURISDICTION

 

22.1                           Choice
of Law.  This Agreement and the
rights and duties of the Parties shall be governed by and construed in
accordance with the substantive laws of the State of New York, without regard
to its conflicts of laws provisions. 
Each Party hereby irrevocably submits to the exclusive jurisdiction of
any federal court of competent jurisdiction situated in the Borough of Manhattan,
or, if any such federal court declines to exercise or is determined not to have
jurisdiction, to the jurisdiction of any New York state court in the Borough of
Manhattan, New York (without recourse to arbitration unless both Parties agree
in writing), and to service of process by certified mail, delivered to the
Party at the most recent designated address.

 

22.2                           Waivers.  Each Party further hereby irrevocably waives,
to the fullest extent permitted by Applicable Law, any objection to personal
jurisdiction, whether on grounds of venue, residence or domicile.  Each Party further waives, to the fullest
extent permitted by Applicable Law, any right it may have to a trial by jury in
respect of any Proceeding relating to this Agreement.

 

22.3                           Time
Period for Making Claims.  Except
when a shorter period is expressly provided under this Agreement, any Claim
arising under this Agreement or any Transaction shall be made within two (2)
years from the date of the events giving rise to the Claim or shall be deemed
waived and barred without recourse to litigation.

 

34

 

ARTICLE 23

ASSIGNMENT

 

23.1                           Assignment.  Neither Party shall transfer or assign this
Agreement or its rights or interests hereunder, in whole or in part, or
delegate its obligations hereunder, in whole or in part, without the prior
consent of the other Party, which shall not be unreasonably withheld; provided,
however, that no consent shall be required for transfer of this
Agreement to an Affiliate by assignment, merger or otherwise or an assignment
solely for security.  The transferor
shall remain jointly and severally liable with the transferee for the full
performance of the transferor’s Obligations under this Agreement unless the
transferee (i) assumes in writing all of the Obligations of the transferor,
(ii) provides the other Party with evidence of financial responsibility at
least equal to that of the transferor, and (iii) in the case of a transfer by
TPSI to an Affiliate, the Guarantor provides a Guaranty of such transferee’s
Obligations under this Agreement.

 

23.2                           Assignment
Absent Consent.  Any attempted
assignment in violation of this Article 23 shall be null and void ab initio and the non-assigning Party
shall have the right, without prejudice to any other rights or remedies it may
have hereunder or otherwise, to terminate this Agreement effective immediately
upon notice to the Party attempting such assignment.

 

ARTICLE 24

ISPS

 

24.1                           MSCG
shall ensure that the Vessel complies with the ISPS Code and the MTSA.

 

24.2                           The
Vessel shall when required submit a Declaration of Security to the appropriate
authorities prior to arrival at the discharge port.

 

24.3                           Notwithstanding
any prior acceptance of the Vessel by TPSI, if at any time prior to the arrival
of the Vessel at the Waterborne Terminal or discharge port the Vessel ceases to
comply with the requirements of the ISPS Code or the MTSA:

 

(a)                                  TPSI
shall have the right not to berth such nominated Vessel at the discharge port
and any demurrage resulting shall not be for the account of TPSI.

 

(b)                                 MSCG
shall be obliged to substitute such nominated Vessel with a Vessel complying
with the requirements of the ISPS Code and the MTSA.  If title and risk to the cargo on board the
Vessel subsequently substituted has already passed to TPSI, such title and risk
shall be deemed to have reverted to MSCG.

 

24.4                           TPSI
shall ensure that the discharge port and Waterborne Terminal comply with the
ISPS Code and the MTSA.  Any costs or
expenses in respect of the Vessel, including demurrage or any additional
charge, fee or duty levied on the Vessel at the discharge port and actually
incurred by MSCG resulting directly from the failure of the discharge port or
Waterborne Terminal to comply with the ISPS Code and the MTSA, shall be for the
account of TPSI.

 

24.5                           TPSI’s
liability to MSCG under this Agreement for any costs, losses or expenses
incurred by the Vessel, the charterers or the Vessel owners resulting from the
failure of the

 

35

 

discharge port or Waterborne Terminal to comply with
the ISPS Code or the MTSA shall be limited to the payment of demurrage and
costs actually incurred by MSCG in accordance with the provisions of this Article 24.

 

ARTICLE 25

NEW OR CHANGED
APPLICABLE LAWS

 

25.1                           New
or Changed Laws.  If at any time
after the Effective Date new Applicable Laws are enacted or existing Applicable
Laws are amended, which individually or collectively have a material adverse
economic effect upon the assumptions of either Party underlying its initial
economic analysis of the Transactions contemplated by this Agreement such that
such assumptions no longer are true, then the affected Party may notify the
other Party that it desires in good faith to renegotiate the price or other
material terms or conditions so affected, stating the new or changed Applicable
Law upon which its renegotiation request is based and the terms upon which it
is willing to continue to perform with respect to deliveries of Products not
yet made.

 

25.2                           Change
in Product Specifications.  The
Parties shall negotiate in good faith any price adjustments that may be
warranted to account for any incremental costs involved in complying with a
Governmental Authority’s change in required Product specifications subsequent
to the date of a nomination and prior to the scheduled date of delivery.

 

ARTICLE 26

NOTICES

 

Any notice, demand or
document that either Party is required or may desire to give under this
Agreement must be (i) in writing and, (ii) except to the extent specifically
provided otherwise in this Agreement, given by personal delivery, overnight
courier, facsimile or United States registered or certified mail, return
receipt requested, with the postage prepaid and properly addressed or
communicated to such Party at its address or facsimile number shown below, or
at such other address as either Party may have furnished to the other by notice
given in accordance with this Article 26.  Any notice delivered or made by personal
delivery, overnight courier, facsimile, or United States mail shall be deemed
to be given on the date of actual delivery as shown by the receipt for personal
delivery or overnight courier delivery, the addresser’s machine confirmation
for facsimile delivery, or the registry or certification receipt for registered
or certified mail.

 

If to TPSI:

 

TransMontaigne Product Services Inc.

1670 Broadway, Suite 3100

Denver, Colorado 
80202

Attn:  Chief
Executive Officer

Facsimile No.: 
303-626-8228

 

36

 

With a copy to:

TransMontaigne Inc.

1670 Broadway, Suite 3100

Denver, Colorado 
80217

Attn:  General
Counsel

 

If to MSCG:

 

Morgan Stanley Capital Group, Inc.

2000 Westchester Avenue, Floor 01

Purchase, New York
10577-2530

Attn: Keith
Grzeczka

Facsimile No.:
(914) 225-9298

 

With a copy to:

Morgan Stanley Capital Group, Inc.

2000 Westchester Avenue, Floor 01

Purchase, New
York  10577-2530

Attn:  Herb Thornhill

 

ARTICLE 27

CONFIDENTIALITY

 

27.1                           Confidential
Information.  Each Party shall
maintain in complete confidence and will not disclose to anyone Confidential
Information except (i) as may be required by court order, Applicable Law or a
Governmental Authority (including, if required, to comply with the disclosure
requirements of the Securities and Exchange Commission, the New York Stock
Exchange, the American Stock Exchange or any self-regulatory organization),
(ii) to such Party’s or its Affiliates’ employees, auditors, consultants,
banks, financial advisors and legal advisors, or (iii) as provided in Section 27.3.  The confidentiality obligations under this
Agreement shall survive termination of this Agreement for a period of two (2)
years following termination.

 

27.2                           Disclosure.  In the case of disclosure covered by clause
(i) of Section 27.1 (other than disclosures required by the
organizations described in the parenthetical) and if the disclosing Party’s
counsel advises that it is permissible to do so, the disclosing Party shall
notify the other Party in writing of any Proceeding of which it is aware which
may result in disclosure, and use reasonable efforts to prevent or limit such
disclosure.  The Parties shall be
entitled to all remedies available at law, or in equity, to enforce or seek
relief in connection with the confidentiality obligations contained herein.

 

27.3                           Tax
Disclosure.  Notwithstanding anything
herein to the contrary, the Parties (and their respective employees,
representatives or other agents) may disclose to any and all persons, without
limitation of any kind from the commencement of discussions, the U.S. federal
income and state tax treatment and tax structure of the transaction and all
materials of any kind (including opinions or other tax analyses) that are
provided to the Parties relating to such tax treatment and tax structure,
except where confidentiality is reasonably necessary to comply with securities
laws.  For this purpose, “tax structure”
is limited to facts relevant to the U.S. federal income and state tax treatment
of the transaction and does not include information relating to the identity of
the Parties, their Affiliates, agents or advisors.

 

37

 

ARTICLE 28

MISCELLANEOUS

 

28.1                           Entire
Agreement.  This Agreement together
with the Related Agreements constitute the entire and exclusive agreement
between the Parties and supersedes all prior oral or written and all
contemporaneous oral agreements and understandings between the Parties with
respect to the subject matter hereof and thereof.  Neither this Agreement, nor any Related
Agreement may be altered, amended, modified or otherwise changed in any respect
or particular whatsoever except in writing duly executed by the authorized
representative of each Party.

 

28.2                           Single
Agreement.  The Parties intend that
this Agreement and all Transactions shall comprise a single integrated
agreement between them and are willing to enter into Transactions in reliance
on that fact.

 

28.3                           Mutual
Cooperation.  From time to time after
the Commencement Date of this Agreement, each of the Parties will execute and
deliver or cause to be executed and delivered, such reasonable documents and
instruments, and take such other reasonable and lawful action as the other
Party may deem necessary to enforce its obligations and enjoy its material
rights and benefits under this Agreement and the Related Agreements or to
otherwise effectuate the purposes of this Agreement and the Related Agreements.

 

28.4                           Recording.  Each Party consents to the other Party
recording conversations between and among their trading and marketing personnel
regarding any Transaction that they may discuss or enter into, shall have
notified its trading and marketing personnel of such recording and shall have
obtained their consent to such recording, if required by Applicable Law.  A Party may commence or cease recording
conversations without notice to the other Party.  Each Party shall provide the other Party with
a true and complete copy of the recording pertaining to the Transaction within
a reasonable time following a request.

 

28.5                           No
Agency, Partnership or Joint Venture. 
Nothing in this Agreement will serve to create any agency, employment or
other master and servant relationship or partnership or joint venture
relationship between the Parties.

 

28.6                           No
Waiver.  Neither the failure nor any
delay on the part of any Party to exercise any right, remedy, power or
privilege under this Agreement will operate as a waiver of such right, remedy,
power or privilege.  No single or partial
exercise of any right, remedy, power or privilege under this Agreement will
preclude any other or further exercise of such right, remedy, power or
privilege or of any other right, remedy, power or privilege. No waiver of any
right, remedy, power or privilege with respect to any occurrence will be
construed as a waiver of such right, remedy, power or privilege with respect to
any subsequent or other occurrence.

 

28.7                           Cumulative
Remedies.  Each and every right
granted to a Party under this Agreement or allowed it by law or equity shall be
cumulative and may be exercised from time to time in accordance with the terms
thereof and Applicable Law.

 

28.8                           Severability.  If any part of this Agreement is contrary to,
prohibited by, or deemed invalid under Applicable Law, such provision will be
inapplicable and deemed omitted to the extent so contrary, prohibited or
invalid.  The remainder of this Agreement
will not be invalidated by such Applicable Law and will be given effect so far
as possible, provided that

 

38

 

each Party can continue to fulfill its material
obligations and enjoy its material rights and benefits under this Agreement.

 

28.9                           Successors
and Assigns and No Third-Party Beneficiaries.  This Agreement and the Related Agreements are
for the exclusive benefit of the Parties and no other Person or entity, will
have any right or Claim against any Party under any of the terms or provisions
of it or be entitled to enforce any of the terms or provisions of it against
any Party.  This Agreement and the
Related Agreements shall be binding on the Parties and their respective
successors and permitted assigns.

 

28.10                     Further
Assurances.  Each Party agrees, from
time to time and upon reasonable request, to execute, deliver and acknowledge,
or to use commercially reasonable efforts to cause any third party to execute,
deliver and acknowledge, such further agreements, documents and instruments as
one Party might reasonably request in order to more fully effect the purposes
of the transactions contemplated hereby, including acknowledgements or
certificates certifying each Party’s continued performance hereunder.

 

28.11                     Survival.  All audit rights, payment, confidentiality
and indemnification obligations shall survive the expiration or termination of
this Agreement

 

28.12                     Counterparts.  This Agreement may be executed by the Parties
in separate counterparts and initially delivered by facsimile transmission or
otherwise, with original signature pages to follow, and all such counterparts
shall together constitute one and the same instrument.

 

[Remainder of Page Intentionally Left
Blank]

 

39

 

IN WITNESS WHEREOF, each Party has caused its authorized representatives to execute
this Agreement in the space provided below, effective as of the Effective Date.

 

	
  Morgan Stanley Capital Group Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Neal A.
  Shear

  	
   

  	
   

  
	
  Name: 
  Neal A. Shear

  	
   

  
	
  Title:  Chairman and President

  	
   

  
	
   

  	
   

  
	
  TransMontaigne Product Services Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Randall
  J. Larson

  	
   

  	
   

  
	
  Name: 
  Randall J. Larson

  	
   

  
	
  Title: Executive Vice President

  	
   

  
					

 

Product Supply Agreement
Signature Page

 

40

 

SCHEDULE
1.1

 

OTHER
COMMODITY AGREEMENTS and SPECIFIED AGREEMENTS

 

	
  OTHER
  COMMODITY AGREEMENTS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
     PHYSICAL CONTRACTS FOR CONVENTIONAL
  GASOLINE

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     PHYSICAL CONTRACTS FOR HIGH SULFUR DIESEL

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     PHYSICAL CONTRACTS FOR LOW SULFUR DIESEL

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     HIGH SULFUR DIESEL SWAPS

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     UNLEADED GAS SWAPS

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     6 OIL SWAPS

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPECIFIED
  AGREEMENTS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Terminaling Services
  Agreements (3)

  	
   

  	
   

  	
   

  
	
   

  	
  Warrant Agreement

  	
   

  	
   

  	
   

  
	
   

  	
  Registration Rights
  Agreement

  	
   

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  

 

41

 

SCHEDULE
2.3(a)

 

PROHIBITED
TRANSFEREES

 

	
     TRANSFEREES THAT REQUIRE THE OTHER PARTY’S
  APPROVAL 

  	
   

  
	
  PURSUANT
  TO SECTION 2.3(a) AND 2.3(c)

  	
   

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
    The above list of transferees shall be
  updated periodically as mutually agreed upon.

  	
   

  	
   

  

 

42

 

SCHEDULE
3.1

 

TERMINALS

 

	
  PIPELINE

  	
   

  

 

	
  SOURCE

  	
   

  	
  TERMINAL NAME

  
	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WATERBORNE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NON-EXCLUSIVE PIPELINE

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  

 

43

 

SCHEDULE 3.2

 

PRELIMINARY FORECASTED PIPELINE VOLUMES

 

(barrels
in 000’s)

 

	
  TPSI
  PIPELINE TERMINALS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Colonial
  Pump Cycle:

  	
  [***]

  	
   

  	
   

  
	
  Colonial
  Pipeline Scheduling Date:

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Pipeline Volumes pursuant to Section 3.2:

  	
   

  	
   

  
	
   

  	
  Equivalent barrels per day
  for pump cycle

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TPSI bulk
  sales to Morgan in Gulf Coast pursuant to Section 6.1:

  	
   

  	
   

  
	
   

  	
  Equivalent barrels per day
  for pump cycle

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Net
  Barrels to be Originated by MSCG and Delivered to TPSI at Pipeline Terminals

  	
   

  	
   

  
	
   

  	
  Equivalent barrels per day
  for pump cycle

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Maximum volumes in net barrels per day to be originated by
  MSCG and delivered to TPSI at Pipeline Terminals

  	
   

  	
   

  
	
  Minimum volumes in net barrels per day to be originated by
  MSCG and delivered to TPSI at Pipeline Terminals

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TPSI bulk
  purchases from Morgan in USGC pursuant to Section 5.3:

  	
   

  	
   

  
	
   

  	
  Equivalent barrels per day
  for pump cycle

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  volumes in barrels per day to be originated by MSCG and delivered to TPSI in
  USGC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Aggregate
  Net Barrels to be Originated by MSCG and Delivered to TPSI

  	
   

  	
   

  
	
   

  	
  Equivalent barrels per day
  for pump cycle

  	
   

  	
   

  

 

44

 

SCHEDULE 3.3

 

PRELIMINARY FORECASTED WATERBORNE VOLUMES

 

(barrels
in 000s)

 

	
  TPSI
  WATERBORNE TERMINALS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery
  Month 

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  volumes in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALL
  WATERBORNE TERMINALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  volumes in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  volumes in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

45

 

SCHEDULE 3.3 (c)

 

IMPLIED AVERAGE DAILY LIFTING BY WATERBORNE TERMINAL

 

(barrels
in 000s)

 

	
  TPSI WATERBORNE TERMINALS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery Month

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Average Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Days Liftings in Forecasted First-Day
  Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First Delivery Due Date Before Additional
  Compensation Due to TPSI

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Average Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Days Liftings in Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First Delivery Due Date Before Additional
  Compensation Due to TPSI

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Average Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Days Liftings in Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First Delivery Due Date Before Additional
  Compensation Due to TPSI

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Average Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Days Liftings in Forecasted First-Day
  Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First Delivery Due Date Before Additional
  Compensation Due to TPSI

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Average Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Days Liftings in Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First Delivery Due Date Before Additional
  Compensation Due to TPSI

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
															

 

46

 

SCHEDULE 3.4

 

DEEMED UNREALIZED NET MARGIN

 

 

GASOLINES:                       [***]

 

DISTILLATES:                    [***]

 

47

 

SCHEDULE 5.1

 

FREIGHT COSTING and LOCATION COSTING

 

PIPELINE TERMINALS

 

(amounts in cents per gallon)

 

 

	
  SOURCE

  	
   

  	
  TERMINAL NAME

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NON-EXCLUSIVE PIPELINE TERMINALS

  
	
  [***]

  	
   

  	
   

  	
   

  	
     [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
       [***]

  	
   

  	
   

  	
   

  	
   

  

 

48

 

SCHEDULE 5.2

 

ADJUSTMENTS

 

WATERBORNE TERMINALS

 

	
   

  	
   

  	
   

  	
   

  	
  Gasoline

  	
   

  	
  Distillate

  	
   

  
	
  Waterborne

  	
   

  	
  [***]

  	
   

  	
  Adjustment

  	
   

  	
  Adjustment

  	
   

  
	
  Terminal

  	
   

  	
  Location

  	
   

  	
  (per gallon)

  	
   

  	
  (per gallon)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

49

 

Schedule 10.4

 

[***]

[***]

 

        [***]

 

50Exhibit 10.2

 

[Portions
of this Exhibit have been omitted pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission.  Such omitted portions are indicated by the
characters “[***].”]

 

First Amendment to

Product Supply Agreement

 

This First Amendment
(this “First Amendment”) to the Product Supply Agreement dated November 4,
2004 (the “Agreement”) between Morgan Stanley Capital Group Inc. (“MSCG”)
and TransMontaigne Product Services Inc. (“TPSI”), is made and entered into November 23, 2004.

 

WHEREAS,
MSCG and TPSI desire to amend the Agreement as set forth in this First
Amendment.

 

NOW,
THEREFORE, in consideration of the
premises and the respective promises, conditions and agreements contained
herein, and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, MSCG and TPSI do hereby agree as follows:

 

ARTICLE 1

DEFINITIONS AND CONSTRUCTION

 

1.1                                 Capitalized
terms and references used but not otherwise defined in this Amendment have the
respective meanings given such terms in the Agreement.

 

1.2                                 All
headings herein are intended solely for convenience of reference and shall not
affect the meaning or interpretation of the provisions of this First
Amendment.  Unless expressly provided otherwise,
the rules of construction contained in Section 1.2 of the Agreement
shall apply to this First Amendment.

 

1.3                                 Each
reference in the Product Supply Agreement to “this Agreement”, “herein” or
words of like import referring to such Agreement shall mean and be a reference
to the Product Supply Agreement, as amended by this First Amendment, and each
reference in any of the Related Agreements and any ancillary documents thereto
to the Product Supply Agreement, “thereunder”, “thereof” or words of like import,
shall mean and be a reference to the Product Supply Agreement, as amended by
this First Amendment.  Any notices,
requests, certificates and other documents executed and delivered on or after
the date hereof may refer to the Agreement without making specific reference to
this First Amendment, but nevertheless all such references shall mean the
Agreement as amended by this First Amendment.

 

1.4                                 For
purposes of this First Amendment, the term “Safety Stock” shall be
deleted.

 

1.5                                 For
purposes of this First Amendment, the following term shall have the meaning
indicated below and such definition shall be added to the Agreement:

 

““Implied Daily Liftings” has the meaning
specified in Section 3.3(c).”

 

1.6                                 For
purposes of this First Amendment, the following term is hereby deleted in its
entirety and replaced in lieu thereof with the following:

 

1

 

““Terminal Services Agreements” means the three
terminaling agreements between TPSI and MSCG for the storage and throughput [***]
each to be entered into prior to or as of the Closing Date hereof.”

 

ARTICLE 2

AMENDMENT TO AGREEMENT

 

The
Agreement is hereby amended as follows:

 

2.1                                 Amendment
to Schedules.  Schedule 3.2,
Schedule 3.3, Schedule 3.3(c) and Schedule 5.2
are hereby deleted in their entirety and replaced in lieu thereof with the
amended and restated schedules attached hereto, which are incorporated
herein.  Schedule 3.1(h) is
hereby added and incorporated herein.

 

2.2                                 Former
Section 2.3(f) is renumbered as Section 2.3(g) and a
new Section 2.3(f) is added as follows:

 

“(f)                              MSCG
may terminate this Agreement, upon [***] notice to TPSI, if the Terminaling
Services Agreement attached as Exhibit A-1 is terminated by either Party
in accordance with the terms thereof due to an event of force majeure; provided,
however, that prior to such termination the Parties shall make good
faith efforts to locate and retain suitable replacement storage facilities or
to mutually agree on amending MSCG’s obligations to supply the Pipeline
Terminals as may be appropriate.”

 

2.3                                 A
new Section 3.1(h) is added as follows:

 

“TPSI acknowledges that the Products to be supplied by
MSCG pursuant to this Agreement are intended for use in its marketing and
distribution business at the Terminals [***]. 
Unless MSCG otherwise agrees, TPSI shall not resell any Products that
MSCG supplies to the Waterborne Terminals pursuant to this Agreement [***]”

 

2.4                                 Section 3.2
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

“Nominations for the Pipeline Terminals.

 

(a)                                  By
a date that is [***], TPSI shall provide MSCG with a preliminary forecasted
demand of the volumes of Products, by grade of Product, that it anticipates it
will require for its marketing and distribution business at the Pipeline
Terminals, which it shall request to be made available by MSCG in the USGC for
shipment to such Terminals (such volumes, the “Preliminary Forecasted
Pipeline Volumes”). The aggregate Preliminary Forecasted Pipeline Volumes [***]
shall be within the range of maximum and minimum volumes as set forth in Schedule 3.2.

 

(b)                                 TPSI
may revise the Preliminary Forecasted Pipeline Volumes by notifying MSCG no
later than [***].  Any revisions to the
Preliminary Forecasted Pipeline Volumes (such revised volumes, the “Adjusted
Forecasted Pipeline Volumes”) shall be within plus or minus [***] of the
Preliminary Forecasted Pipeline Volumes. 
The aggregate Adjusted Forecasted

 

2

 

Pipeline Volumes [***] shall be within the range of
maximum and minimum volumes as set forth in Schedule 3.2.  The Adjusted Forecasted Pipeline Volumes
shall be rounded to the nearest [***] for each grade of Product [***] and shall
meet the minimum batch requirements for each grade of Product as may be
stipulated by the respective pipeline.

 

(c)                                  MSCG
shall determine, and notify TPSI of, the final volumes of Products that MSCG
will make available in the USGC for shipment to the Pipeline Terminals (such
volumes, the “Final Forecasted Pipeline Volumes”) no later than [***]; provided,
however, that the Final Forecasted Pipeline Volumes shall be within [***]
of the Adjusted Forecasted Pipeline Volumes for each grade of Product [***].

 

(d)                                 MSCG
shall notify TPSI as soon as possible (but not later than [***] the Injection
Date for the relevant pump cycle) upon determining that it will not meet any of
its delivery obligations under this Section 3.2, and the amount of
the volume of the shortfall by grade of Product.  Within [***] of receiving such notice, TPSI
shall notify MSCG whether it intends to procure a replacement source of supply
of all or a portion of the shortfall of Products or to forgo supply of all or a
portion of the shortfall of Products.

 

(e)                                  [***]

 

(f)                                    The
aggregate volumes for each grade of Product that MSCG is required to supply to
the Pipeline Terminals during each pump cycle shall be subject to the standard
delivery tolerances of the delivering pipeline.

 

(g)                                 In
lieu of supplying TPSI with Products at the Pipeline Terminals via pipeline
delivery, MSCG shall be entitled to supply Products to TPSI from MSCG’s
inventory of Products that it may store at a Pipeline Terminal pursuant to the
Terminaling Services Agreement attached as Exhibit A-3.  In such event, the price of the Products
shall be equal to the prices determined pursuant to Section 5.1.  [***].

 

(h)                                 Notwithstanding
anything in this Agreement to the contrary, the aggregate net volumes of
Products that MSCG shall be required to originate and supply to TPSI via the
Colonial Pipeline and the Plantation Pipeline shall be subject to a minimum of [***]
and a maximum of [***].  For purpose of
this limitation, the aggregate net volumes shall be determined, for any day, by
adding (i) the Final Forecasted Pipeline Volumes of Products nominated pursuant
to Section 3.2 and (ii) the volumes of Products to be delivered to
satisfy the TPSI Exchange Agreements pursuant to Section 3.1(b).”

 

2.5                                 Section 3.3
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

“Nominations
for the Waterborne Terminals.

 

(a)                                  Not
later than [***], TPSI shall provide MSCG with a preliminary forecasted demand
of the volumes of Products, by grade of Product, that TPSI anticipates it will
require for its marketing and distribution business at each of the Waterborne
Terminals, which it shall request to be supplied by MSCG to each Waterborne
Terminal in such delivery month (such volumes, the “Preliminary Forecasted
Waterborne Volumes”).  The
Preliminary Forecasted

 

3

 

Waterborne Volumes shall
be within the range of maximum and minimum volumes for each grade of Product
set forth in Schedule 3.3.

 

(b)                                 Not
later than [***], TPSI shall advise MSCG of any changes to the Preliminary
Forecasted Waterborne Volumes (such revised volumes, the “Adjusted
Forecasted Waterborne Volumes”).  Any
revisions to the Preliminary Forecasted Waterborne Volumes shall be within plus
or minus [***] of the Preliminary Forecasted Waterborne Volumes.  In addition, (i) the aggregate Adjusted
Forecasted Waterborne Volumes for the delivery month shall not exceed the
aggregate Adjusted Forecasted Waterborne Volumes for [***] by more than [***],
and (ii) the aggregate Adjusted Forecasted Waterborne Volumes shall be within
the range of maximum and minimum volumes for each grade of Product as set forth
in Schedule 3.3.

 

(c)                                  Not
later than [***], TPSI also shall provide MSCG with its best estimate of the
inventory volumes, by grade of Product and by Waterborne Terminal, that are expected
to be on hand as of the first day of the delivery month (such volumes, the “Forecasted
First-Day Excess Inventory”), as set forth in Schedule 3.3(c).  MSCG shall schedule shipments of
Products to the Waterborne Terminals, by grade of Product and by Waterborne
Terminal, based on (i) the Forecasted First-Day Excess Inventory that TPSI
provides to MSCG (upon which MSCG is entitled to rely for purposes of TPSI’s
date of anticipated depletion), (ii) the Adjusted Forecasted Waterborne Volumes
as determined pursuant to Section 3.3(b), and (iii) the implied
average ratable daily liftings of inventory volumes (such volumes, the “Implied
Daily Liftings”) for each grade of Product, as illustrated in Schedule 3.3(c).

 

(d)                                 Not
later than the [***], MSCG shall determine, and notify TPSI of, the final
volumes of Products that MSCG will deliver to the Waterborne Terminals (such
volumes, the “Final Forecasted Waterborne Volumes”); provided, however,
that the Final Forecasted Waterborne Volumes, for each grade of Product with
respect to each Waterborne Terminal, shall be within [***] of the Adjusted
Forecasted Waterborne Volumes for each grade of Product with respect to each
Waterborne Terminal.  The Final
Forecasted Waterborne Volumes for a current delivery month shall be decreased
by any excess delivered volumes supplied by MSCG in the immediately preceding
month pursuant to Section 3.3(g). 
No later than [***], MSCG shall notify TPSI of such [***] and provide
TPSI with a schedule of volumes, by grade of Product, expected to be
delivered to each Waterborne Terminal within such [***].

 

(e)                                  TPSI
shall notify MSCG on the [***] prior to the date that TPSI anticipates that its
inventory of a grade of Product at a Waterborne Terminal will be depleted based
on the Implied Daily Liftings for such Product at such Waterborne
Terminal.  [***].

 

(f)                                    [***]

 

(g)                                 Subject
to available tankage for receipt of Products at a Waterborne Terminal and only
for volumes of Products that MSCG sources by Vessel, MSCG shall be entitled to
deliver volumes of Products [***] for such month up to a maximum of [***] based
on the Implied Daily Liftings for the current month.  Such excess delivered volumes, if any, shall
be considered deliveries of the Final Forecasted Waterborne Volumes for [***].  If the aggregate volumes of Products
delivered in any month exceed [***] for such month, TPSI shall not be required
to pay for such Products until the [***].

 

4

 

(h)                                 The
volumes for each grade of Product that MSCG schedules for delivery to each
Waterborne Terminal during a delivery month shall be no less than [***] for
such grade of Product for such delivery month.

 

(i)                                     In
lieu of supplying TPSI with Products at the Waterborne Terminals via vessel
delivery, MSCG shall be entitled to supply TPSI with Products [***] or by means
of an in-tank transfer from MSCG’s inventory of Products that it may store at a
Waterborne Terminal pursuant to Section 3.3(j).  For [***], the price of the Products shall be
determined according to [***].  MSCG
shall be responsible [***].  For in-tank
transfers, the price of the Products shall be determined according to [***].

 

(j)                                     MSCG
shall have the exclusive use of all the tanks for delivery of Products at the
Waterborne Terminals, and TPSI shall not be permitted to lease any tanks at the
Waterborne Terminals to any third party, [***]. 
For purposes of this Section 3.3(j), the Available Storage
Capacity shall be determined as of [***] and adjusted to reflect the maximum
volumes to be supplied by MSCG to TPSI at each Waterborne Terminal, at a rate
of [***].  Subject to the Parties’ mutual
agreement with respect to the terms and conditions governing the storage of
Products [***] by MSCG at the Waterborne Terminals, TPSI shall allow MSCG to
store inventory of MSCG’s Products at the Waterborne Terminals [***].”

 

2.6                                 Section 3.4(a)
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

“Provided that MSCG has timely received the
nominations from TPSI pursuant to Section 3.2 or Section 3.3,
and subject to Section 3.1(c) or an event of Force Majeure, MSCG
shall procure and supply to TPSI the Final Forecasted Pipeline Volumes in
accordance with Section 3.2 and the Final Forecasted Waterborne
Volumes in accordance with Section 3.3 (in each case taking into
account the tolerances specified in Section 3.2(f) and Section 3.3(h)).”

 

2.7                                 Section 3.4(b)
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

“(b)                           If
MSCG is liable to TPSI for Cover Costs under either Section 3.2(e)
or Section 3.3(f), it shall pay TPSI the amount of Cover Costs [***]
from receipt of invoice therefor and appropriate supporting documentation.”

 

2.8                                 Section 3.4(c)
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

“(c)                            [***].”

 

2.9                                 In
Section 3.4(d), the reference to former Section 3.2(d)
is amended to read “Section 3.2(f)” and the reference to former Section 3.3(e)
is amended to read “Section 3.3(h)”.

 

2.10                           Section 4.1
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

5

 

“Title and Risk
of Loss.  Title to and risk of loss of the Products delivered by Vessel
shall pass from MSCG to TPSI when the Products pass the last permanent flange
connection between the cargo discharge manifold of the Vessel and the receiving
hose at the Waterborne Terminal.  Title to and risk of loss of the
Products delivered by pipeline shall pass from MSCG to TPSI when the Products
pass the upstream flange of the pipeline meter measuring the Products upon
discharge into the Pipeline Terminal from the Colonial Pipeline or the
Plantation Pipeline, as the case may be. 
Title to and risk of loss of the Products that MSCG may deliver to TPSI
from inventories of Products that are owned by MSCG and stored at the Terminals
pursuant to the Terminaling Services Agreement attached as Exhibit A-3
or Section 3.3(j) shall pass from MSCG to TPSI at a point to be
mutually agreed between the Parties. 
Upon transfer of title and risk of loss, TPSI shall assume all
responsibility for all losses, contamination and damages attributable to
handling, transportation, resale and use of the Products.”

 

2.11                           A
new Section 4.8 is hereby added as follows:

 

“Dye and Additive Injection.  TPSI shall provide the mechanical injection
equipment and other facilities necessary to inject red dye and lubricity
additives into Products as may be required by Applicable Law prior to sale of
the Products at the Terminal racks.  MSCG
shall reimburse TPSI for the costs of red dye injection at the rate of [***]
per gallon, subject to escalation by the Parties’ mutual agreement.  The cost of lubricity additives shall be as
mutually agreed between the Parties. 
Products delivered by MSCG to the Terminals that meet the applicable
specifications except for the absence of red dye or lubricity additives shall
not be deemed to be off-spec for purposes of Section 4.5.  The Parties shall cooperate in good faith to
agree upon the cost of lubricity additives and any increase in the cost of red
dye injection within a reasonable time period. 
If they are unable to do so, then each Party shall choose a Reference
Market-Maker and the two Reference Market-Makers jointly and expeditiously
shall choose a third Reference Market-Maker. 
Each of the three Reference Market-Makers shall make its independent
determination of the lubricity or red dye additive costs and the arithmetic
mean of the three costs determined by the Reference Market-Makers shall be
binding and conclusive on the Parties absent manifest error.  Until the Reference Market-Makers establish
the lubricity or red dye additive costs, the Parties shall in good faith
negotiate interim costs that reasonably reflect the value of the lubricity or
red dye additives.  Upon determination by
the Reference Market-Makers of the lubricity or red dye additive costs, any
amounts payable by one Party to the other Party of the aggregate net difference
between the interim and final lubricity or red dye additive costs shall be paid
promptly, with interest at the Interest Rate.”

 

2.12                           Section 7.3
is hereby deleted in its entirety and replaced in lieu thereof with the
following:

 

“Payment.  Except as provided in Section 3.3(g)
or Section 6.3, TPSI and MSCG shall pay all daily invoices
(facsimile copies acceptable) within [***] after the latest date of delivery of
Products covered by the invoice (the date of delivery is day zero).  The owing Party shall pay all monthly
invoices for true-up of [***] prices within [***] of the invoice date.  TPSI shall remit payment without offset,
counterclaim or deduction of any kind via wire transfer of immediately
available (same day) federal funds in U.S. dollars.  If payment falls due on a Sunday or a Monday
non-Business Day, then payment shall be made on the next succeeding

 

6

 

Business Day.  If payment falls due on a Saturday or
non-Monday non-Business Day, then payment shall be made on the immediately
preceding Business Day.”

 

2.13                           In
Section 21.1, the reference to former Section 3.2(d) is
amended to read “Section 3.2(f)” and the reference to former Section 3.3(e)
is amended to read “Section 3.3(h)”.

 

ARTICLE 3

MISCELLANEOUS

 

3.1                                 Scope
of First Amendment.  The Agreement is
amended only as expressly modified by this First Amendment.  Except as expressly modified by this First
Amendment, the terms of the Agreement remain unchanged, and the Agreement is
hereby ratified and confirmed by the Parties in all respects.  In the event of any inconsistency between the
terms of the Agreement and this First Amendment, this First Amendment shall
prevail to the extent of such inconsistency.

 

3.2                                 Representations
and Warranties.  Each Party
represents and warrant that this First Amendment has been duly authorized, executed
and delivered by it and that each of this First Amendment and the Agreement
constitutes its legal, valid, binding and enforceable obligation, enforceable
against it in accordance with its terms, except to the extent such
enforceability may be limited by the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and by general principles of equity.

 

3.3                                 No
Waiver.  Except as expressly provided
herein, the execution and delivery of this First Amendment shall not be deemed
or construed to (i) constitute an extension, modification or waiver of any term
or condition of the Agreement, (ii) give rise to any obligation on the part of
either Party to extend, modify or waive any term or condition of the Agreement
or (iii) be a waiver by either Party of any of its rights under the Agreement,
at law or in equity.

 

3.4                                 Reaffirmation.  Each Party hereby reaffirms each and every
covenant, condition, obligation and provision set forth in the Agreement, as
modified hereby.

 

3.5                                 Governing
Law.  This First Amendment and any
issues arising hereunder shall be governed by, construed and enforced under the
laws of the State of New York without giving effect to its conflicts of laws
principles.

 

3.6                                 Severability.  If any Article, Section or provision of
this First Amendment shall be determined to be null and void, voidable or
invalid by a court of competent jurisdiction, then for such period that the
same is void or invalid, it shall be deemed to be deleted from this First
Amendment and the remaining portions of this First Amendment shall remain in
full force and effect.

 

7

 

3.7                                 Counterparts.  This First Amendment may be executed by the
Parties in separate counterparts and initially delivered by electronic or
facsimile transmission or otherwise, with original signature pages to follow,
and all such counterparts shall together constitute one and the same
instrument.

 

[Remainder
of Page Intentionally Left Blank]

 

8

 

IN
WITNESS WHEREOF, each Party hereto has caused this First
Amendment to be executed by its duly authorized representative on the date
written below.

 

 

	
  Morgan
  Stanley Capital Group Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Neal A.
  Shear

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Chairman and
  President

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  November 23,
  2004

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TransMontaigne
  Product Services Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Randall J.
  Larson

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Executive Vice
  President

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  November 23,
  2004

  	
   

  	
   

  

 

 

First Amendment to Product Supply Agreement – Signature Page

 

9

 

Schedule
3.1(h)

 

Bulk
Customers

 

 

[***]

 

10

 

 

SCHEDULE 3.2

 

PRELIMINARY FORECASTED PIPELINE
VOLUMES

 

(barrels in 000’s)

 

TPSI PIPELINE TERMINALS:

 

 

 

	
  Colonial
  Pump Cycle:

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Colonial
  Pipeline Scheduling Date:

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  

 

	
  Preliminary
  Forecasted Pipeline Volumes pursuant to Section 3.2:

  	
   

  	
   

  	
   

  
	
  Equivalent barrels per day for pump cycle

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TPSI
  bulk sales to MSCG in Gulf Coast pursuant to Section 6.1:

  	
   

  	
   

  	
   

  
	
  Equivalent barrels per day for pump cycle

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Net
  Barrels to be Originated by MSCG and Delivered to TPSI at Pipeline Terminals

  	
   

  	
   

  	
   

  
	
  Equivalent barrels per day for pump cycle

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TPSI
  bulk purchases from MSCG in USGC pursuant to Section 5.3:

  	
   

  	
   

  	
   

  
	
  Equivalent barrels per day for pump cycle

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Aggregate
  Net Barrels to be Originated by MSCG and Delivered to TPSI

  	
   

  	
   

  	
   

  
	
  Equivalent barrels per day for pump cycle

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  volumes in net barrels per day to be originated by MSCG and delivered to TPSI

  	
   

  	
   

  	
   

  
	
  Minimum
  volumes in net barrels per day to be originated by MSCG and delivered to TPSI

  	
   

  	
   

  	
   

  

 

11

 

SCHEDULE 3.3

 

PRELIMINARY FORECASTED WATERBORNE
VOLUMES

 

(barrels in 000s)

 

TPSI WATERBORNE TERMINALS:

 

	
  Delivery
  Month

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  volumes in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALL
  WATERBORNE TERMINALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  volumes in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  volumes in barrels per day

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

12

SCHEDULE 3.3 (c)

 

IMPLIED AVERAGE DAILY LIFTING BY
WATERBORNE TERMINAL

 

(barrels in 000s)

 

	
  TPSI
  WATERBORNE TERMINALS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery
  Month

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available
  Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety
  Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of Days Liftings in Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available
  Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety
  Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of Days Liftings in Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available
  Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety
  Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of Days Liftings in Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available
  Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety
  Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of Days Liftings in Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available
  Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Safety
  Stock

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maximum
  Cargo Delivery Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forecasted
  First-Day Excess Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjusted
  Forecasted Waterborne Volumes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Monthly Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied
  Daily Liftings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number
  of Days Liftings in Available Storage Capacity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
															

 

13

 

SCHEDULE 5.2

 

ADJUSTMENTS

 

WATERBORNE TERMINALS

 

	
   

  	
   

  	
   

  	
   

  	
  Gasoline

  	
   

  	
  Distillate

  	
   

  
	
  Waterborne

  	
   

  	
  [***]

  	
   

  	
  Adjustment

  	
   

  	
  Adjustment

  	
   

  
	
  Terminal

  	
   

  	
  Location

  	
   

  	
  (per gallon)

  	
   

  	
  (per gallon)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

The prices for
Products delivered to and received at the [***] shall be the [***] for [***],
minus the Adjustment indicated above [***]. 

The prices for
Products delivered to and received at the [***] shall be the [***] for [***],
minus the Adjustment indicated above [***].

 

MSCG shall provide
TPSI with appropriate supporting documentation of [***].

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]