UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
_____________________________________________
FORM 8-K
  _____________________________________________
 
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 31, 2016
 
_____________________________________________
MPLX LP
(Exact name of registrant as specified in its charter)
 
_____________________________________________
 
 
 
 
 
 
 
Delaware
 
001-35714
 
27-0005456
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
200 E. Hardin Street
Findlay, Ohio
 
45840
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code:
(419) 672-6500
(Former name or former address, if changed since last report.)
  _____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 






Item 1.01
Entry into a Material Definitive Agreement
Effective with the closing of the Transaction (as defined in Item 2.01 below), the following agreements were assumed by MPLX LP (the “Partnership”) through its ownership of Hardin Street Marine LLC (“HSM”).

Amended and Restated Transportation Services Agreement
HSM is a party to an Amended and Restated Transportation Services Agreement with Marathon Petroleum Company LP (“MPC LP”), entered into on January 1, 2015 (the “Transportation Services Agreement”), whereby HSM provides marine transportation of crude oil, feedstocks and refined petroleum products, as well as services related to such transportation. MPC LP pays HSM a monthly fee for such transportation and related services. The Transportation Services Agreement has an initial term of six years and automatically renews for two additional renewal terms of five years each unless either party provides the other party with written notice of its intent to terminate at least 12 months prior to the end of the then-current term.

The foregoing description of the Transportation Services Agreement is not complete and is qualified in its entirety by reference to the full text of the Transportation Services Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

First Amendment to the Amended and Restated Transportation Services Agreement
HSM is a party to a First Amendment to the Amended and Restated Transportation Services Agreement with MPC LP, entered into on March 31, 2016, which amends the insurance-related provisions of the Transportation Services Agreement.

The foregoing description of the First Amendment to the Amended and Restated Transportation Services Agreement is not complete and is qualified in its entirety by reference to the full text of the First Amendment to the Amended and Restated Transportation Services Agreement, which is filed as Exhibit 10.2 to this Current Report on Form 8-K and incorporated herein by reference.

Amended and Restated Management Services Agreement
HSM is a party to an Amended and Restated Management Services Agreement with MPC LP, entered into on January 1, 2015 (the “Management Services Agreement”), whereby HSM provides certain management services to assist MPC LP in the oversight and management of its marine operations, including logistics, commercial, analytical, loss control and vetting services. MPC LP pays HSM a monthly fee for such management services. The Management Services Agreement has an initial term of six years and automatically renews for two additional renewal terms of five years each unless either party provides the other party with written notice of its intent to terminate at least 12 months prior to the end of the then-current term.

The foregoing description of the Management Services Agreement is not complete and is qualified in its entirety by reference to the full text of the Management Services Agreement, which is filed as Exhibit 10.3 to this Current Report on Form 8-K and incorporated herein by reference.

Second Amended and Restated Employee Services Agreement
HSM is a party to a Second Amended and Restated Employee Services Agreement with Marathon Petroleum Logistics Services LLC (“MPLS”), entered into on January 1, 2015 (the “Employees Services Agreement”), whereby MPLS provides certain employee-related services in support of the assets owned or operated by HSM as well as certain other services to support the HSM business. HSM pays a monthly fee to MPLS for such services. The Employee Services Agreement has an initial term of six years and automatically renews for two additional renewal terms of five years each unless either party provides the other party with written notice of its intent to terminate at least 12 months prior to the end of the then-current term.

The foregoing description of the Employee Services Agreement is not complete and is qualified in its entirety by reference to the full text of the Employee Services Agreement, which is filed as Exhibit 10.4 to this Current Report on Form 8-K and incorporated herein by reference.

Guaranteed Supply Agreement
HSM is a party to a Guaranteed Supply Agreement with MPC LP, entered into on January 1, 2015, for the supply of 3.3 million gallons of fuel annually to HSM. Under the Guaranteed Supply Agreement, HSM must purchase the fuel on a ratable basis throughout the initial term or any successor term or MPC LP may reduce the sales volume on a pro-rated basis for each successive renewal term. The Guaranteed Supply Agreement has an initial term of one year and automatically renews for successive one year renewal terms unless either party provides the other party with written notice of non-renewal at least 60 days prior to the end of the then-current term.






The foregoing description of the Guaranteed Supply Agreement is not complete and is qualified in its entirety by reference to the full text of the Guaranteed Supply Agreement, which is filed as Exhibit 10.5 to this Current Report on Form 8-K and incorporated herein by reference.

Relationships
MPC LP and MPLS are wholly-owned subsidiaries of Marathon Petroleum Corporation (“MPC”). As the Partnership’s general partner, MPLX GP LLC (the “General Partner”) manages the Partnership’s operations and activities through the General Partner’s officers and directors. The General Partner is a wholly-owned subsidiary of MPC. As a result, certain individuals serve as officers and directors of both the General Partner and MPC. After giving effect to the Transaction (as defined in Item 2.01 below) MPC holds, indirectly through its subsidiaries, 79,466,136 common units representing limited partner interests in the Partnership (“MPLX Common Units”) representing approximately 24.0% of the MPLX Common Units issued and outstanding as of March 31, 2016. MPC also owns an indirect 2% general partner interest in the Partnership and all of the Partnership’s incentive distribution rights through its ownership of the General Partner.
Item 2.01
Completion of Acquisition or Disposition of Assets
As previously announced, on March 14, 2016, the Partnership entered into a Membership Interests Contribution Agreement (the “Contribution Agreement”) with the General Partner, MPLX Logistics Holdings LLC (“MPLX Logistics”) and MPC Investment LLC (“MPC Investment”), each a wholly-owned subsidiary of MPC. Pursuant to the Contribution Agreement, the Partnership agreed to acquire from MPC Investment for equity consideration valued at approximately $600 million (the “Equity Consideration”), all of the limited liability company interests of HSM, through a series of intercompany contributions (the “Transaction”). HSM owns MPC’s inland marine business. The inland marine business, comprised of 18 tow boats and 205 barges, transports light products, heavy oils, crude oil, renewable fuels, chemicals and feedstocks in the Midwest and U.S. Gulf Coast regions, and accounts for nearly 60% of the total volumes MPC ships by inland marine vessels.

The Transaction closed on March 31, 2016. In exchange for all of the limited liability company interests of HSM, the Partnership issued the Equity Consideration consisting of (i) 22,534,002 MPLX Common Units to MPLX Logistics and (ii) 459,878 general partner units to the General Partner in order to maintain its 2% general partner interest in the Partnership. MPLX Logistics agreed to waive distributions on the MPLX Common Units issued in connection with the Transaction for the Partnership’s first quarter 2016 cash distribution, and the General Partner will not be entitled to receive general partner distributions or incentive distribution rights that would otherwise accrue on such MPLX Common Units with respect to the Partnership’s first quarter 2016 cash distribution.

The foregoing description of the Contribution Agreement is not complete and is qualified in its entirety by reference to the full text of the Contribution Agreement, which was filed as Exhibit 2.1 to the Partnership’s Current Report on Form 8-K filed on March 17, 2016, and incorporated herein by reference.

MPLX Logistics, MPC Investment and the General Partner are wholly-owned subsidiaries of MPC. The description in Item 1.01 above of the relationships among the General Partner, the Partnership and MPC is incorporated by reference into this Item 2.01.
Item 3.02
Unregistered Sales of Equity Securities
The description in Item 2.01 above of the Partnership’s issuance of common units to MPLX Logistics and general partner units to the General Partner in connection with the Transaction is incorporated into this Item 3.02 by reference, insofar as such information relates to the sale of unregistered equity securities. The sale and issuance of the common units to MPLX Logistics and general partner units to the General Partner in connection with the Transaction is exempt from registration under Section 4(a)(2) of the Securities Act of 1933.

Item 9.01
Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
(b) Pro Forma Financial Information.
The financial statements and pro forma financial information required to be filed under Item 9.01 of Form 8-K will be filed within 71 days after the date upon which this Current Report on Form 8-K is required to be filed.
(d) Exhibits.
 





Exhibit
Number
 
Description
 
 
 
 
2.1
 
Membership Interests Contribution Agreement, dated March 14, 2016, between MPLX LP, MPLX Logistics Holdings LLC, MPLX GP LLC and MPC Investment LLC (incorporated by reference to Exhibit 2.1 to MPLX LP’s Current Report on Form 8-K (File No. 001-35714) filed with the Securities and Exchange Commission on March 17, 2016)
10.1
 
Amended and Restated Transportation Services Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Company LP
10.2
 
First Amendment to the Amended and Restated Transportation Services Agreement, dated March 31, 2016, between Hardin Street Marine LLC and Marathon Petroleum Company LP
10.3
 
Amended and Restated Management Services Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Company LP
10.4
 
Second Amended and Restated Employee Services Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Logistics Services LLC
10.5
 
Guaranteed Supply Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Company LP








SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
MPLX LP
 
 
 
 
 
 
 
By:
 
MPLX GP LLC, its General Partner
 
 
 
 
 
 
 
 
Date: April 6, 2016
By:
 
/s/ Nancy K. Buese
 
 
 
Name: Nancy K. Buese
 
 
 
Title: Executive Vice President and Chief Financial Officer





Index to Exhibits
 

Exhibit
Number
 
Description
 
 
 
 
2.1
 
Membership Interests Contribution Agreement, dated March 14, 2016, between MPLX LP, MPLX Logistics Holdings LLC, MPLX GP LLC and MPC Investment LLC (incorporated by reference to Exhibit 2.1 to MPLX LP’s Current Report on Form 8-K (File No. 001-35714) filed with the Securities and Exchange Commission on March 17, 2016)
10.1
 
Amended and Restated Transportation Services Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Company LP
10.2
 
First Amendment to the Amended and Restated Transportation Services Agreement, dated March 31, 2016, between Hardin Street Marine LLC and Marathon Petroleum Company LP
10.3
 
Amended and Restated Management Services Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Company LP
10.4
 
Second Amended and Restated Employee Services Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Logistics Services LLC
10.5
 
Guaranteed Supply Agreement, dated January 1, 2015, between Hardin Street Marine LLC and Marathon Petroleum Company LP





AMENDED AND RESTATED TRANSPORTATION SERVICES AGREEMENT

THIS AMENDED AND RESTATED TRANSPORTATION SERVICES AGREEMENT (“ Agreement ”) is entered into as of the Effective Date by and between Marathon Petroleum Company LP, a Delaware limited partnership with an address of 539 South Main Street, Findlay, Ohio 45840 (hereinafter “ MPC ”), and Hardin Street Marine LLC, a Delaware limited liability company with an address of 539 South Main Street, Findlay, Ohio 45840 (hereinafter “ HSM ”). 

RECITALS

WHEREAS, HSM is engaged in the business of providing both midstream marine transportation of Products as well as certain services related to such transportation;

WHEREAS, MPC may from time to time require the use of HSM’s services for the purpose of transporting Products and certain services related to such transportation;

WHEREAS, MPC and HSM previously entered into that certain Transportation Services Agreement on the 1 st day of January, 2015, as amended by that First Amendment to Transportation Services Agreement dated January 27, 2015 and that Second Amendment to Transportation Services Agreement dated February 5, 2015 (collectively, the “ Original TSA ”); and

WHEREAS, pursuant to Section 11.1(a) of the Original TSA, MPC and HSM now desire to amend and restate the terms and conditions contained in the Original TSA.

NOW, THEREFORE, for and in consideration of the forgoing and mutual agreements herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HSM and MPC hereby amend and restate the Original TSA in its entirety as follows:

ARTICLE I
DEFINITIONS

1.1      Definitions . As used in this Agreement:

(a) Additional Equipment ” means any towboats or barges that HSM adds to its fleet after the Effective Date by way of Memorandum to File. Additional Equipment added pursuant to this Agreement shall be deemed to be “Equipment” under this Agreement

(b) Additional Transportation Service ” has the meaning set forth in Section 3.3 .

(c) Affiliate ” means, as to any specified Person, any other Person that directly, or indirectly, through one (1) or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified Person. For purposes of the foregoing, “control”, “controlled by”, and “under common control with” with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, member or partnership interests, by contract or otherwise. For the purposes of this Agreement HSM shall not be considered an Affiliate of MPC, nor shall MPC or any of its Affiliates other than HSM be considered an Affiliate of HSM.

(d) Agreement ” means this Amended and Restated Transportation Services





Agreement and all Exhibits referenced in and attached to this Agreement and all amendments, modifications and changes thereto.

(e) Amended and Restated Employee Services Agreement ” means the Amended and Restated Employee Services Agreement effective as of January 1, 2015 between Marathon Petroleum Logistics Services LLC and HSM.

(f) Amended and Restated Management Services Agreement ” means the Amended and Restated Management Services Agreement effective as of January 1, 2015 between Marathon Petroleum Company LP and HSM.

(g) Applicable Law ” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having jurisdiction over the matter or matters in question, whether now or hereafter in effect.

(h) Authorized Representative ” means, for each Party, any of the individuals holding the titles listed on Exhibit D under the name of such Party.

(i) Bankrupt ” means, with respect to any Person, that such Person (i) becomes insolvent or unable to pay its debts as they become due; (ii) commences any case, proceeding or other action under any existing or future law seeking to enter into any composition or other arrangement for the benefit of its creditors generally or any class of creditors; (iii) applies for, consents to, or acquiesces in, the appointment of a trustee, receiver, sequestrator or other custodian for such Person or any of its property, or makes a general assignment for the benefit of creditors; (iv) in the absence of such application, consents or acquiesces in, permits or suffers to exist the appointment of a trustee, receiver, sequestrator, intervenor, mediator or other custodian for such Person or for a substantial part of its property, and such trustee, receiver, sequestrator, intervenor, mediator or other custodian is not discharged within sixty (60) days; (v) permits or suffers to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, liquidation, winding up or liquidation proceeding, in respect of such Person and, if any such case or proceeding is not commenced by such Person, such case or proceeding is consented to or acquiesced in by such Person or results in the entry of an order for relief or remains undismissed or unstayed for sixty (60) days; or (vi) takes any corporate action authorizing, or in furtherance of, any of the foregoing.

(j) Barge Group ” means the barges listed under Equipment in Exhibit C during any Mechanical Availability Calculation Period.

(k) Cargo ” means a cargo shipment of MPC’s Product.

(l) Claims and Liabilities ” means all suits, sanctions, actions, liabilities, legal proceedings, government fines and penalties, pollution clean-up, damages to natural resources, claims, demands, losses, damages, costs, expenses, or causes of action of every kind and character, including all claims that may exist, arise, or be threatened currently or in the future at any time following the Effective Date and whether or not of a type contemplated by any Party at any time following the Effective Date.

(m) Cleaning and Repair Facility Charges ” has the meaning set forth in Exhibit B.

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(n) Confidential Information ” means any proprietary or confidential information that is competitively sensitive material or otherwise of value to a Party or its Affiliates and not generally known to the public, including trade secrets, scientific or technical information, design, invention, process, procedure, formula, improvements, product planning information, marketing strategies, financial information, information regarding operations, consumer and/or customer relationships, consumer and/or customer identities and profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of a Party or its Affiliates and the consumers, customers, clients and suppliers of any of the foregoing. Confidential Information includes such information as may be contained in or embodied by documents, substances, engineering and laboratory notebooks, reports, data, specifications, computer source code and object code, flow charts, databases, drawings, pilot plants or demonstration or operating facilities, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation (including data in computer or other digital format) of the foregoing; provided , however , that Confidential Information does not include information that a receiving Party can show (i) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement (ii) has been furnished or made known to the receiving Party by a Third Party under circumstances that are not known to the receiving Party to involve a breach of the Third Party’s obligations to the disclosing Party or (iii) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.

(o) Credit ” has the meaning set forth in Section 5.3(b) .
 
(p) Day Rate ” is the per diem fee for the Transportation Services as set forth on Exhibit B and as further described in Section 4.1 .

(q) Dispute ” means any dispute or difference of whatsoever nature arising under, out of, in connection with or in relation (in any manner whatsoever) to this Agreement or the subject matter of this Agreement.

(r) Effective Date ” means January 1, 2015.

(s) Equipment ” has the meaning set forth in Section 3.1(a) and as listed in Exhibit C .

(t) Event of Default ” has the meaning set forth in Section 11.1.

(u) “Extension Period” has the meaning set forth in Section 2.1.

(v) “Final Mechanical Availability Calculation Period” means the beginning of the calendar year in which the Term ends until the end of the Term should the Term end on a day different than December 31.


(w) First Offer Period ” has the meaning set forth in Section 2.2 .

(x) Fleeting Services ” has the meaning set forth in Exhibit B.

(y) Force Majeure Event ” means any event or circumstance that is beyond the

3




reasonable control of a Party and which the affected Party is not able to overcome through the exercise of commercially reasonable efforts that prevents or delays the affected Party from complying, either totally or in part, with any of its obligations under this Agreement. Provided that they satisfy the preceding sentence, Force Majeure Event shall include any fire, flood, storm, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel, power, raw materials or components, equipment failure, any law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any Governmental Authority, riot, civil commotion, war, rebellion, act of terrorism, nuclear or other accident, explosion, casualty, pandemic, or act of God, or act, omission or delay in acting by any Governmental Authority or military authority or Third Party or any other cause, whether or not of a class or kind listed in this sentence.

(z) Force Majeure Notice has the meaning set forth in Section 3.6(a) .

(aa) Force Majeure Period ” has the meaning set forth in Section 3.6(a) .

(bb)    “ Governmental Authority ” means the government of any nation or any political subdivision thereof, whether at the national, state, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

(cc)    “ HSM ” has the meaning set forth in the preamble.

(dd)    “ HSM Indemnified Parties ” means HSM and each of its directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.

(ee)    “ In Transit Loss Allowance has the meaning set forth in Section 5.8 .

(ff)    “ Inactive Equipment means Equipment that HSM sells, retires, or considers to be a constructive loss after the Effective Date.

(gg)    “ Indemnified Party ” means a Party receiving indemnification from the other Party in accordance with the terms of this Agreement.

(hh)    “ Indemnifying Party ” means a Party providing indemnification to the other Party in accordance with the terms of this Agreement.

(ii)    “ Initial Term ” has the meaning set forth in Section 2.1 .

(jj)    “ Interest Rate ” means the rate per annum equal to LIBOR plus one percent (1%). Any interest payable hereunder shall accrue from day to day and be calculated on the basis of a three hundred sixty-five (365) day year.

(kk)    “ LIBOR ” means, on a particular day, the rate per annum for three (3) month deposits in USD which appears on the Reuters screen “LIBO Page” at or about 11 a.m. (London time) on the first day of the period for which interest is to be calculated, or, if such day is not a day on which banks are open for business in London, on the next following day on which banks are open for business in London. If Reuters information service fails to display such rate on any day when a rate is to be determined as aforesaid, but such rate is so displayed on Bridge Telerate

4




or is available directly from the Intercontinental Exchange (ICE) Benchmark Administration Limited (or any other Person that takes over the administration of that rate), it shall be determined from that source accordingly.

(ll)    “ Marathon ” has the meaning set forth in Section 8.1 .

(mm)    “ Marathon Petroleum Vetting Policy ” means the Marathon Petroleum Vetting Policy, as revised as of May 30, 2014, developed by MPC, and given to HSM, for approving the use of petroleum tank vessels and gas carriers for MPC and its Affiliates, as amended, revised and updated from time to time by MPC in writing to HSM.

(nn)    “ Mechanical Availability ” means the percentage of time that HSM determines the Equipment is available pursuant to Exhibit E for towboats and Exhibit F for barges.

(oo)     “Mechanical Availability Calculation Period” means each calendar year unless a Final Mechanical Availability Period or another time period agreed by each party as a Mechanical Availability Calculation Period. In no event shall a Mechanical Availability Calculation Period encompass two calendar years in part or whole.

(pp)    “ Mediation Notice ” has the meaning set forth in Section 12.1(b) .

(qq)    “ Memorandum to File ” means a memorandum that is signed by an Authorized Representative after the Effective Date for the purpose of notifying MPC of Additional Equipment or Inactive Equipment.

(rr)    “ Monthly Payment ” has the meaning set forth in Section 4.1 .

(ss)    “ MPC has the meaning set forth in the preamble.

(tt)    “ MPC Indemnified Parties ” means MPC, each of its Affiliates, and each of their respective directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.

(uu)    “ MPC Termination Notice ” has the meaning set forth in Section 3.6(c) .

(vv)    “ Outcharter ” has the meaning set forth in Section 4.5 .

(ww)    “ Original TSA ” has the meaning set forth in the Recitals.

(xx)    “ Party means MPC or HSM, as applicable.

(yy)    “ Person ” means a natural person, corporation, partnership, limited liability company, joint stock company, trust, estate, joint venture, union, association or unincorporated organization, Governmental Authority or any other form of business or professional entity.

(zz)    “ Plan ” has the meaning set forth in Section 9.1 .

(aaa)    “ Product means crude oil, feedstocks, light products, heavy oils, specialty chemicals and refined petroleum products.

(bbb)    “ SDS ” has the meaning set forth in Section 3.7 .

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(ccc)     “Tankerman Services” has the meaning set forth in Exhibit B.


(ddd)    “ Term ” has the meaning set forth in Section 2.1 .

(eee)    “ Termination Notice ” has the meaning set forth in Section 3.6(b) .

(fff)    “ Third Party ” means a Person that is not a Party or an Affiliate of a Party.

(ggg)    “ Towboat Group ” means the towboats listed under Equipment in Exhibit C during any Mechanical Availability Calculation Period.

(hhh)    “ Transportation Right of First Refusal ” has the meaning set forth in Section 2.2 .

(iii)    “ Transportation Services ” has the meaning set forth in Section 3.1(a) .

(jjj)    “ USD ” or “ $ ” or “ dollar ” means the lawful currency from time to time of the United States of America.
(kkk)    “ Vessel Response Plan ” means, collectively, (i) the Hardin Street Marine LLC Vessel Response Plan for Tank Vessels, Tank Barges USCG - Control No. 00134, and (ii) the Hardin Street Marine LLC Vessel Response Plan for Non-Tank Vessels, HSM Towboats USCG Control # 03197, in each case as amended, revised and updated from time to time by HSM.
1.2      Interpretation . In this Agreement, unless the context clearly indicates otherwise:

(a) words used in the singular include the plural, and words used in the plural include the singular;

(b) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement;

(c) any reference to any gender includes the other gender;

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”;

(e) any reference to any Article, Section or Exhibit means such Article or Section of, or such Exhibit to, this Agreement, as the case may be, and references in any Article, Section or Exhibit to any clause means such clause of such Article, Section or Exhibit;

(f) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof;

(g) any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time;

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(h) any reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

(i) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including”;

(j) if there is any conflict between the provisions of the main body of this Agreement and the Exhibits, the provisions of the main body of this Agreement shall control, unless explicitly stated otherwise in such Exhibit;

(k) the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;

(l) the language of this Agreement shall be deemed to be the language the Parties have chosen to express their mutual intent, and no rule of strict construction shall be applied against either Party; and

(m) the Schedules and Exhibits form part of this Agreement and shall have the same force and effect as if set out in the body of this Agreement and any reference to this Agreement shall include the Schedules and Exhibits.

ARTICLE II
TERM
2.1.      Term . This Agreement is effective for a time period commencing on the Effective Date and shall continue for a period of six (6) years (the “ Initial Term ”) or the end of any Extension Period unless terminated earlier pursuant to the terms hereof. This Agreement will automatically renew for up to two (2) additional renewal terms of five (5) years each (each, an “ Extension Period ”) unless either Party provides the other Party with written notice of its intent to terminate this Agreement at least twelve (12) months prior to the end of the then-current Term. The Initial Term and Extension Periods, if any, shall be referred to in this Agreement collectively as the “ Term .”

2.2     Right of First Refusal .     In the event HSM proposes to enter into a transportation services agreement with a Third Party upon the termination of this Agreement for reasons other than a default by MPC or any other termination of this Agreement initiated by MPC pursuant to this Agreement, HSM shall give MPC ninety (90) days’ prior written notice of any proposed new transportation services agreement with a Third Party, which notice shall include details of all the material terms and conditions of such proposed transportation services agreement, subject to applicable confidentiality agreements. MPC shall have thirty (30) days following MPC’s receipt of such written notice (the “ First Offer Period ”) in which MPC may make a good faith offer to enter into a new transportation services agreement with HSM (the “ Transportation Right of First Refusal ”). If MPC makes an offer on terms no less favorable to HSM than the Third Party offer with respect to such transportation services agreement during the First Offer Period, then HSM shall be obligated to enter into a transportation services agreement with MPC in accordance with this Section 2.2 . If MPC does not exercise its Transportation Right of First Refusal in the manner set forth above, HSM may, for the succeeding ninety (90) days, proceed with the negotiation of such Third Party transportation services agreement. If no Third Party

7




transportation services agreement is consummated during such ninety (90) day period, the terms and conditions of this Section 2.2 shall again become effective.


ARTICLE III
PERFORMANCE OF TRANSPORTATION SERVICES

3.1      Agreement to Provide Transportation Services .

(a) During the Term and upon receipt of MPC’s oral or written request for Transportation Services, HSM shall provide (i) transportation services to MPC to transport Cargoes on the inland and coastal waters of the United States using the towboats, barges, and other equipment owned or operated by HSM as set forth on Exhibit C , as may be updated during the Term by HSM providing to MPC a Memorandum to File that adds or removes items of equipment (collectively, the “ Equipment ”), and (ii) mooring services for barges ( i.e. , fleeting services); Tankerman Services for the assurance of safe transfer of Cargo; cleaning services for Cargo tanks, voids, boat bilges and fuel/slop tanks; and routine repair and maintenance services performed at MPC’s facilities (collectively, the “ Transportation Services ”).

(b) This Agreement to provide Transportation Services does not preclude HSM from marketing its Transportation Services to third parties, provided that said marketing does not interfere with, or reduce its obligations to provide MPC’s requested Transportation Services under paragraph 3.1(a) herein.

(c) Equipment shall be loaded or discharged at any safe place or berth, or alongside vessels designated by MPC provided that the Equipment is always safely afloat. MPC shall provide the Equipment with a safe berth at MPC loading and discharging ports. Without prejudice to MPC’s foregoing obligation to provide a safe berth, HSM may determine, in its sole discretion, whether a loading or discharge berth is unsafe, and HSM shall not be liable for any Claims and Liabilities resulting from such determination.

3.2     Operations . At all times during the Term, HSM shall control and direct the Equipment and the crew of such Equipment and HSM shall:

(a) use reasonable care in material compliance with Applicable Laws and applicable agreements in providing the Transportation Services;

(b) use due diligence to ensure that the Equipment, to the extent applicable, (i) is seaworthy and prudently manned, maintained, equipped and supplied; (ii) is suitable for the specified Cargo; (iii) has fully functioning safety valves, overfill prevention system, fire suppression system, and automatic identification system transponder; (iv) is vapor tight (with certificates of vapor tightness provided to MPC upon request and updated according to Applicable Law); and (v) has no manifolds between compartments containing gasoline and distillate respectively;

(c) as soon as practical, notify MPC of any accidents, whether or not damage is obvious, occurring in the performance of the Transportation Services and promptly furnish MPC with a written report of all of the circumstances of any such accident; and

(d) in the event HSM arranges to have a surveyor attend and/or inspect the Equipment and/or any damage or other event or incident arising from or relating to this

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Agreement, provide MPC as much advance notice of any such survey as is practical under the circumstances, to enable MPC personnel to attend such survey and/or arrange to appoint its own surveyor.

3.3     Additional Transportation Service . If MPC requests in writing to HSM a transportation service not covered by the Transportation Services being provided pursuant to this Agreement as of the date of the request, and HSM agrees to provide such service, then the Parties will negotiate in good faith an amendment to Exhibit B or Exhibit G , as applicable, to include the additional transportation service (each such service an “ Additional Transportation Service ”), the terms and conditions for the provision of each Additional Transportation Service and the Monthly Payment payable to MPC for each Additional Transportation Service, such Monthly Payment to be determined with the intent that it reflects an arm’s length standard.

3.4      Modification; Third Party Providers .

(a)
Any requests or other communications from a Party to another Party regarding (i)
the Transportation Services (ii) any modification or alteration to the provision of the Transportation Services or (iii) the provision of an Additional Transportation Service must be made by an Authorized Representative (it being understood that the receiving Party shall not be obligated to agree to any modification or alteration requested thereby).

(b)
The Parties understand and agree that MPC may contract with any Third Party to
provide equipment and/or transportation services that are not included in Equipment or Transportation Services under this Agreement. Further, any costs or expenses to be incurred in connection with obtaining such equipment or transportation services from a Third Party shall be paid by MPC; provided , however , that pursuant to the Amended and Restated Management Services Agreement HSM shall use commercially reasonable efforts to assist MPC in contracting for and vetting and managing such Third Party equipment or transportation services and shall communicate to MPC in advance the expected costs or expenses to be incurred.

3.5      Disclaimer of Warranties . EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HSM MAKES NO, AND EXPRESSLY DISCLAIMS ANY, WARRANTIES WHATSOEVER WITH RESPECT TO THE TRANSPORTATION SERVICES AND THE EQUIPMENT, INCLUDING ANY (A) WARRANTY OF MERCHANTABILITY; OR (B) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; OR (C) WARRANTY OF TITLE; OR (D) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.

3.6     Force Majeure .

(a) As soon as possible following the occurrence of a Force Majeure Event, HSM will provide MPC with written notice of the occurrence of such Force Majeure Event (a “ Force Majeure Notice ”). Concurrent with that notice or as soon as possible thereafter, HSM will give MPC a full description of the Force Majeure Event and the approximate length of time that HSM reasonably believes such Force Majeure Event will continue (the “ Force Majeure Period ”). Each Party shall use commercially reasonable efforts to mitigate or overcome the effects of a Force Majeure Event as soon as possible; provided , however , that neither Party shall be required to settle any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interest. It is understood that the settlement

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of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party.

(b) If HSM notifies MPC that it reasonably believes that the Force Majeure Period will continue for more than twelve (12) consecutive months for specified Equipment, then either Party may give the other Party notice of intent to terminate this Agreement with respect to the affected Equipment (a “ Termination Notice ”) at least twelve (12) months prior to the expiration of the Force Majeure Period; provided , however , that such Termination Notice shall be deemed canceled and of no effect if the Force Majeure Period ends prior to the expiration of such twelve (12) month period.

(c) Notwithstanding the foregoing, if MPC delivers a Termination Notice to HSM (the “ MPC Termination Notice ”) and, within thirty (30) days after receiving such MPC Termination Notice, HSM notifies MPC that HSM reasonably believes that it will be capable of fully performing its obligations under this Agreement within thirty (30) calendar days, then the MPC Termination Notice shall be deemed revoked and the applicable portions of this Agreement shall continue in full force and effect as if such MPC Termination Notice had never been given.

3.7      Material Safety Data Sheets . MPC has provided to HSM the current Material Safety Data Sheet or Safety Data Sheet (“ SDS ”) for each Product to be transported by HSM. MPC shall not be required to provide a SDS at each load. In the event that a new SDS becomes available for a particular Product, MPC shall promptly notify HSM and promptly provide the new SDS to HSM. HSM acknowledges that lethal levels of hydrogen sulfide gas and/or other petroleum, chemical or related product fumes, such as benzene, may be present in the vapor space within storage tanks and other compartments that contain asphalt and other heavy oil cargoes or certain other petroleum, chemical, or related products, such as benzene or coal tar light oil. In areas adjacent to or in close proximity to areas where such tanks and compartments vent, precautions must be taken against inhalation of hydrogen sulfide gas and/or other chemical fumes. Odor is not a reliable means of hydrogen sulfide gas or chemical fume detection. Consultation of the SDS for product and other descriptions and the rules and regulations of the Occupational Safety & Health Administration for protective measures is the responsibility of HSM. HSM acknowledges that it will provide warnings and safe handling information about hydrogen sulfide gas and other applicable chemical fumes to HSM’s employees, agents, contractors and invitees, and will require them to further communicate the warnings and information to all persons that they reasonably foresee may be exposed to or handle any Cargo that may contain hydrogen sulfide gas or other chemical fumes. HSM further acknowledges that it is responsible for determining, implementing, and ensuring compliance with work procedures to provide adequate precautions against hydrogen sulfide gas and other applicable chemical fumes exposure by HSM’s employees, agents, contractors and invitees.

3.8      No Partnership . This Agreement shall not be interpreted or construed to create an association, partnership, joint venture, employment or fiduciary relationship or similar relationship between HSM and MPC. Except as explicitly set forth in this Agreement, neither Party shall have any right, power or authority to enter into any agreement or undertaking for, act on behalf of, act or be an agent or representative of, or otherwise bind, the other Party. HSM shall act as an independent contractor in the performance of its duties hereunder.

3.9     Title; Risk of Loss .    Notwithstanding the simple negligence, gross negligence or willful actions of HSM, and subject to Section 5.8 , risk of loss or damage to Cargoes will at all times remain with MPC. Further, as between HSM and MPC, title to the Cargoes will at all times remain with MPC.

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ARTICLE IV
COMPENSATION

4.1      Monthly Payment .     MPC shall pay HSM monthly (a) the Day Rate stated in Exhibit B for each item of Equipment listed in Exhibit C and in any Memorandum to File for each day of the invoice month and (b) the charges listed in Exhibit B for Fleeting Services and Cleaning and Repair Facility Charges, as well as the charges listed in Exhibit B and Exhibit G for Tankerman Services, as incurred for the invoice month (collectively, the “ Monthly Payment ”). MPC shall be relieved of its obligation to pay the Monthly Payments to HSM for any piece of Equipment listed in Exhibit C that is unavailable for service twelve (12) consecutive months or more due to a Force Majeure Event.

4.2     Invoicing; Late Payments; Disputed Payments .

(a)    Within twenty (20) days following the end of each month during the Term, HSM will submit to MPC for payment a written invoice for the amounts due under this Agreement for such month, including any expenses to be reimbursed by MPC in accordance with Section 4.4 and applicable credits to MPC in accordance with Section 5.3(b) . MPC shall pay all amounts due pursuant to an invoice within ten (10) days after receipt of such invoice. MPC shall not offset any amounts owing to it by HSM against amounts payable hereunder.

(b)    If MPC fails to make payment of any sum as and when due under this Agreement, then MPC shall pay interest thereon to HSM at the Interest Rate (as in effect on the day when such sum was originally due) on and from the day when payment was due until the date of payment.

(c)    MPC may contest the amount of any invoice, provided that MPC notifies HSM in writing of the contested amount and specifies the reason(s) therefor within ninety (90) days following the end of the calendar year on which the relevant Transportation Services were performed. MPC shall timely pay any disputed item in full while resolution of the dispute is pending; provided , however , that HSM shall pay interest at the Interest Rate on any amounts it is required to return to MPC upon resolution of the dispute. Payment of the uncontested amount shall not constitute approval thereof.

4.3     Adjustment of Day Rate and Fleeting Services and Tankerman Services Charges .

(a)    The Day Rate and Fleeting Services charges stated in Exhibit B shall be adjusted in accordance with the schedule listed on Exhibit A, unless otherwise mutually agreed between HSM and MPC in a subsequent letter agreement signed by each Party’s Authorized Representative.

(b)     Cleaning and Repair Facility Charges will be adjusted each year to reflect then-current market rates as determined by HSM acting reasonably based upon published industry information or other relevant documentation. Such adjustment, if any, will be effective each year on the anniversary of the Effective Date.

(c)     Tankerman Services charges stated in Exhibit B and Exhibit G shall be invoiced to MPC based on the geographical zone in which the Tankerman Services were provided. The Fleeting Services rates shall be adjusted in accordance with the schedule listed on Exhibit A ,

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unless otherwise mutually agreed between HSM and MPC in a subsequent letter agreement signed by each Party’s Authorized Representative.

4.4     Reimbursement of Expenses . Monthly, to the extent incurred by HSM, MPC shall reimburse HSM for each of the following:

(a) all reasonable fuel and ancillary costs incurred by HSM, all reasonable Cleaning and Repair Facility Charges and all reasonable Third Party charges, including all port and harbor charges, incurred in providing the Transportation Services under this Agreement;

(b) any reasonable costs and expenses incurred by HSM for all damage of any kind, as well as reasonable waste removal and cleaning costs, resulting from the receipt of Product that does not conform to the applicable industry standard quality specifications as set forth in Section 5.2 ;

(c) any reasonable costs and expenses incurred by HSM in complying with any new or change in Applicable Law occurring after the Effective Date that affects the Transportation Services provided by HSM under this Agreement, provided that (i) compliance by HSM with any such new or change in Applicable Law requires capital expenditures by HSM and (ii) HSM has made efforts to mitigate the capital expenditures required by such Applicable Law;

(d) all taxes (other than income taxes, gross receipt taxes, ad valorem taxes, property taxes and similar taxes) incurred by HSM on MPC’s behalf with respect to the Transportation Services provided under this Agreement, to the extent such reimbursement is not prohibited by Applicable Law;

(e) the actual costs of any capital expenditures, excluding Additional Equipment, HSM agrees to make at MPC’s request, to the extent such costs are actually incurred by HSM; and
(f) any reasonable costs incurred by HSM to restore disruptions to the Transportation Services described in Section 3.1(a) that are caused by MPC or MPC’s employees, Affiliates, representatives, agents or customers.

4.5      Outchartering of Equipment . If for a given period of time, MPC has no need for any item of Equipment, or if HSM is unable to access an item of Equipment for service to MPC due to a Force Majeure Event, MPC or HSM may so notify the other (as applicable), and HSM may employ such item of Equipment in other service (“ Outcharter ”). If HSM locates an Outcharter for such item of Equipment, HSM shall provide notice to MPC. If the Outcharter day rate earned is less than or equal to the relevant Day Rate under this Agreement, then HSM will credit MPC for 100% of the amount received from the Outcharter. If the Outcharter day rate earned is greater than the Day Rate of this Agreement, HSM will credit MPC for 100% of the Day Rate of this Agreement. HSM shall ensure that no Outcharter interferes with HSM’s obligations to MPC under paragraph 3.1(a) herein.
4.6     Taxes . To the extent required by Applicable Law, HSM shall add to any Monthly Payment due under this Agreement amounts equal to any sales, use or similar taxes, however, designated or levied, based upon the provision of the Transportation Services performed hereunder. HSM is solely responsible for the collection and remittance of any such taxes to the appropriate tax authorities. The Parties will cooperate with each other to minimize any such taxes to the extent reasonably practicable. If additional taxes are determined to be due with respect to the Transportation Services provided hereunder as a result of (a) an audit by any

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applicable tax authority, or (b) a new or change in Applicable Law, then MPC shall reimburse HSM for the additional taxes due from HSM, including interest and penalty. MPC has the right to contest with the tax authority, at MPC’s sole expense, the amount of any taxes or the result of any audit. HSM is responsible for any penalty or interest resulting from its failure to remit any invoiced taxes. Notwithstanding anything in this Agreement to the contrary, this Section 4.6 will, to the fullest extent permitted by Applicable Laws, survive the termination of this Agreement and remain in effect until the expiration of the relevant statute of limitations.

ARTICLE V
AVAILABILITY OF EQUIPMENT

5.1     Disruption of Transportation Services . HSM shall promptly notify MPC of any anticipated partial or complete disruption of a Transportation Service, other than a disruption due to a Force Majeure Event (notice of which shall be given in accordance with Section 3.6(a) ), that is reasonably expected to extend for more than twenty-four (24) hours, including relevant information about the nature, extent, cause and expected duration of the disruption and the actions HSM is taking to resume full operations; provided , however , that HSM shall not have any liability for any failure to notify, or delay in notifying, MPC of any such matters except to the extent MPC has been materially damaged by such failure or delay. HSM shall provide MPC with at least ninety (90) days’ notice of any planned maintenance or repair activity on the Equipment that HSM determines will significantly reduce the Transportation Services.

5.2     Acceptance of Cargo . Subject to the terms of this Agreement and to disruptions for routine testing, inspection, repair and maintenance consistent with industry standards; scheduling requirements; and any requirements of Applicable Law; HSM shall accept for shipment all Cargo that meets applicable industry standard quality specifications. HSM may, without prejudice to any other remedy available to HSM, reject and return to MPC any Product that does not conform to such specifications, even after delivery to HSM.

5.3     Mechanical Availability of Equipment .

(a) Mechanical Availability Calculation . Promptly after the end of each Mechanical Availability Calculation Period and the Final Mechanical Availability Calculation Period, HSM shall calculate the Mechanical Availability individually for the Towboat Group and the Barge Group pursuant to Exhibits E and F .

(b) Mechanical Availability Credit . If the Mechanical Availability of the Towboat Group or Barge Group is below ninety-five percent (95%) for a Mechanical Availability Calculation Period, then MPC will receive a Credit calculated pursuant to Exhibits E and F. The Credit , if any, shall be offset against the Monthly Payment due to HSM in the month immediately following the month of the Mechanical Availability Calculation Period.

5.4     Restoring Transportation Services . HSM shall make such repairs and take such reasonable actions as are necessary to restore any disruption to those Transportation Services described in Section 3.1(a)(i) . All such restoration shall be at HSM’s cost and expense unless the damage or event was caused by MPC or MPC’s employees, Affiliates, representatives, agents or customers. If for any reason, other than a disruption due to Force Majeure, HSM fails to provide at least ninety-five percent (95%) of the requested Transportation Services described in Section 3.1(a)(i) and the agreed Additional Transportation Services for a period of thirty (30) consecutive days, then either Party has the right to call a meeting between executives of both Parties by providing at least two (2) business days’ prior written notice.

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5.5     No Demise and No Control by MPC . Nothing in this Agreement shall be construed as creating a demise of the Equipment to MPC or as vesting MPC with any control over the physical operation or navigation of the Equipment. HSM shall control and direct all tankermen provided by HSM. As between HSM and MPC, all such tankermen shall be deemed for all purposes not to be an employee of MPC.

5.6     Inspection/Vetting . Upon reasonable advance notice to HSM, MPC may inspect the Equipment at a loading or discharging berth, or other location which will not substantially interfere with the operation of the Equipment, and may, at HSM’s offices, review HSM’s safety, environmental protection, and maintenance programs and procedures. If MPC determines, based on such inspection or review, that a material, unsatisfactory safety or operational condition exists, then MPC may provide HSM with written notice of such condition and the basis for MPC’s determination of the same. If HSM agrees with MPC’s determination, then HSM shall provide a written explanation of its cure, including the estimated time to cure. If HSM reasonably disagrees with MPC’s determination, then HSM shall provide MPC with written notice of its disagreement and the basis therefor, and the Parties shall negotiate in good faith to resolve such disagreement. HSM shall afford all necessary cooperation and accommodation; provided , however , that neither the exercise nor the non-exercise by MPC of such right shall in any way reduce HSM’s authority over, and responsibility for, the Equipment and every aspect of its operation, nor increase MPC’s responsibilities to HSM or Third Parties for the same, and shall not be construed as an assumption by MPC of responsibility for the safety of the vessel and its crew or for liability to Third Parties.

5.7     Cargo Transfer . Before and after any Cargo transfer, HSM shall inspect moorings, hoses and appurtenances. HSM shall be responsible for handling, inspecting, bleeding, attaching and detaching all hoses and lines from the shore connection to the Equipment in a safe and prudent manner. During Cargo transfer, HSM shall continuously monitor flow rate, connections, and barge tank levels. HSM shall measure and legibly document barge compartment levels both before and after Cargo transfer. MPC shall pump Cargo into the Cargo tanks of the Equipment at MPC’s expense, and HSM shall pump Cargo out of the Cargo tanks at MPC’s expense. The Cargo will be safely loaded and discharged at such rates, pressures and temperatures required by design of the Equipment, or the receiving terminal, as appropriate, and/or good operating practice with respect to such Equipment, or the receiving terminal, as appropriate.

5.8     Loss in Transit. HSM shall reimburse MPC for in transit loss of Cargo in excess of one-half percent (0.5%) by volume, or such other percentage as the Parties may agree in writing shall apply to certain Products (“ In Transit Loss Allowance ”). HSM shall not be liable for any such loss unless (a) the cause for the loss in transit is unknown, (b) MPC or MPC’s agent provides written notice of such loss to HSM within thirty (30) days of unloading the relevant Cargo and (c) a comparison of Equipment ullage figures at loading port and at discharge port, as measured by a Third Party inspector, which shall be mutually agreed to by both MPC and HSM, establishes that a volume loss in excess of the In Transit Loss Allowance has actually occurred in transit. The amount payable by HSM to MPC for any such in transit loss shall be an amount equal to (x) the volume loss in excess of the In Transit Loss Allowance, multiplied by (y) the per unit spot value of the relevant product using an appropriate industry market index for the delivery location reference market.

5.9     Audit . HSM shall retain all records and accounts related to the Transportation Services
provided herein for at least three (3) years from the completion date of any Transportation Service. HSM shall permit MPC access at reasonable times and upon reasonable advance notice,

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but not more often than once in any calendar year, to review and audit all records and accounts relating to the Transportation Services provided under this Agreement at MPC’s sole cost and expense. Any audit of a particular calendar year must commence during the one (1) year period (or such longer period as the Parties may agree) following the end of such year.

ARTICLE VI
REPRESENTATIONS AND WARRANTIES

6.1     Representations and Warranties . Each Party hereby represents and warrants to the other as of the date of this Agreement that:

(a)    it is duly organized and validly existing under the laws of its jurisdiction of organization;

(b)    it has the power to own its assets and carry on its business as it is currently being conducted;

(c)    the obligations expressed to be assumed by it in this Agreement are legal, valid, binding and enforceable obligations upon it, subject to applicable bankruptcy, reorganization, insolvency or similar laws affecting creditors’ rights generally;

(d)    the entry into, and performance by it, of the transactions contemplated by this Agreement do not and will not conflict with (i) any Applicable Law; (ii) its constitutional documents; or (iii) any material provision of any material agreement or instrument binding upon it; and

(e)    it has the power to enter into, perform and deliver, and has taken all necessary action to authorize its entry into, performance and delivery of this Agreement and the transactions contemplated by this Agreement.

ARTICLE VII
INDEMNIFICATION AND LIABILITY

7.1      Indemnification by HSM . HSM shall be liable for and shall indemnify, defend and hold harmless each of the MPC Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of HSM’s actions or performance of its obligations hereunder to conform to Applicable Law, (b) claims for bodily injury or death or physical loss of or damage to property arising from HSM’s actions or omissions and (c) any negligence, gross negligence, default or willful misconduct of HSM in connection with the performance of, or failure to perform, this Agreement by HSM, except to the extent the circumstances described in the foregoing subparagraphs (a), (b) and (c) are a result of acts or omissions of MPC or its Affiliates.

7.2      Indemnification by MPC . MPC shall be liable for and shall indemnify, defend and hold harmless each of the HSM Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of MPC’s or its Affiliates’ actions or performance of its obligations hereunder to conform to Applicable Law, (b) claims for bodily injury or death or physical loss of or damage to property arising from the actions or omissions of MPC or its Affiliates and (c) any negligence, gross negligence, default or willful misconduct

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of MPC or any of its Affiliates in connection with the performance of, or failure to perform, this Agreement by MPC or any Affiliate of MPC, except to the extent the circumstances described in the foregoing subparagraphs (a), (b) and (c) are a result of acts or omissions of HSM.

7.3     Exception to Indemnification . Notwithstanding anything in this Agreement to the contrary, MPC is not responsible for indemnification obligations pursuant to Section 7.2 for any cause of action arising from the actions, inactions, admissions, or omissions of any personnel provided or caused to be provided to HSM pursuant to the Amended and Restated Employee Services Agreement, provided the Amended and Restated Employee Services Agreement is still in effect at the time the cause of action arose. MPC is responsible for indemnification obligations pursuant to Section 7.2 for any cause of action arising from the grossly negligent or willful actions, inactions, admissions, or omissions of any personnel provided or caused to be provided to HSM pursuant to the Amended and Restated Employee Services Agreement, provided the Amended and Restated Employee Services Agreement is still in effect at the time the cause of action arose.

7.4      Limitations and Liability .

(a) Each Party has a duty to mitigate any loss sustained under this Agreement.

(b) IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS, LOSS OF DATA, LOSS OF GOODWILL AND LOSS OF CAPITAL, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE (EXCEPT TO THE EXTENT THAT SUCH DAMAGES ARE PAID TO A THIRD PARTY AS A RESULT OF A THIRD PARTY CLAIM) ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT EITHER PARTY TO THIS AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

7.5      Indemnification Procedures .

(a) Within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article VII , the Indemnified Party will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim to the extent then known by the Indemnified Party.

(b) The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article VII , including the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any matter or any issues relating thereto; provided , however , that no settlement involving the payment of money shall be entered into without the prior written consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such claim; and provided further , that no settlement containing any form of injunctive or similar relief shall be entered into without the prior written consent of the Indemnified Party, which consent shall not be unreasonably delayed, conditioned or withheld.

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(c) The Indemnified Party agrees to cooperate in good faith and in a commercially reasonable manner with the Indemnifying Party with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification under this Article VII , including the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense and counterclaims, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party reasonably considers relevant to such defense and counterclaims, the making available to the Indemnifying Party of any employees of the Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties and facilities of the Indemnified Party; provided , however , that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 7.5 . The obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence shall not be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article VII ; provided , however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims.

(d) In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from Third Parties.

(e) Notwithstanding anything to the contrary hereunder, no cause of action, dispute or claim for indemnification may be asserted against any Party or submitted to arbitration or legal proceedings which accrued more than two (2) years after the later of (i) the occurrence of the act or event giving rise to the underlying cause of action, dispute or claim and (ii) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Indemnified Party.

7.6      Assumption of Risk . HSM acknowledges that environmental, health, and safety conditions, the existence of hazardous materials (including Cargo that may contain hydrogen sulfide gas and/or other petroleum, chemical or related product fumes), interaction with Third Party vessels and personnel, and other hazards, commonly exist at MPC’s work sites. Further, HSM acknowledges that its use of, and presence on, waterways, public property and Third Party property are beyond the control of MPC. HSM thus assumes the ordinary risks associated with the performance of the Transportation Services contemplated herein.

ARTICLE VIII
INSURANCE

8.1      Corporate Group Insurance . Without limiting the scope of any of HSM’s obligations or liabilities under this Agreement, MPC shall cause its affiliate Marathon Petroleum Corporation

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(“ Marathon ”) to procure and maintain, in HSM’s name and at HSM’s sole cost and expense, and keep in effect during the Term, the following insurances within Marathon’s corporate wide policies with insurance companies designated by A.M. Best Company with a rating of A- or better.:

(a) If HSM has employees on its payroll and if further required by Applicable Laws to cover such employees, Workers’ Compensation and U.S. Longshore and Harbor Workers’ Compensation Act Insurance covering all its employees performing the Transportation Services, sufficient to comply fully with requirements and coverages specified by all Applicable Laws.

(b)    Marine General Liability Insurance with contractual liability coverage for HSM’s indemnity obligations under this Agreement, and combined single limits of at least $2,000,000 per occurrence.
(c)    Excess Coverage in the amount necessary to achieve insurance liability limits of $10,000,000 in total for all insurable risks with such limits to be achieved through any combination of above primary and excess coverages.

8.2         HSM Insurance.      Without limiting the scope of any of HSM’s obligations or liabilities under this Agreement, HSM shall procure and maintain, or shall cause to be procured and maintained, in its name and at its sole cost and expense, and keep in effect during the Term, the following insurance with insurance companies designated by A.M. Best Company with a rating of A- or better:

(a)    Pollution Insurance in an amount equal to the maximum carried by HSM, but never less than the amount necessary to comply with the minimum financial responsibility requirements established by any Applicable Law, or $100,000,000, whichever is greater.

(b)    Protection and Indemnity Insurance with contractual liability coverage and sistership clause unamended, endorsed specifically to include (a) collision liability, (b) in rem claims, stating that such actions shall be treated as a claim against the insured in personam and (c) full crew coverage including wages, maintenance and cure, with a limit of at least $2,000,000 per occurrence.

(c)    Tower’s Liability Insurance that covers all damages caused by said tow, by collision or otherwise, with a limit of at least $2,000,000 per occurrence.

8.3         Certificates .    Prior to the performance of Transportation Services hereunder and upon request from MPC, HSM shall furnish the separate agreement with MPC or certificates for the insurance identified in Section 8.1 and certificates of insurance for the insurance identified in Section 8.2(a) showing (a) all insurance coverages and endorsements required by this Agreement and (b) a statement from the relevant insurance provider that the insurance will not be materially changed, canceled, or permitted to expire without at least thirty (30) days’ prior written notice to MPC. Upon request from MPC, HSM shall provide supplements and amendments to such certificates to demonstrate that the insurance identified in Section 8.2(a) and endorsements remain in effect. MPC’s acceptance of an insurance certificate that does not comply with this Agreement does not waive any requirement of this Agreement.

8.4     Coverage by Third Parties .    In the event HSM utilizes one or more Third Parties in the performance of its fleeting, tankermen or cleaning and repair facility services hereunder, HSM shall ensure that such Third Parties maintain insurance coverage of the types and amounts herein

18




established that are applicable to the services to be provided by such Third Parties. Upon request from MPC, HSM shall provide to MPC, prior to the use of any such services, certificates of insurance evidencing such coverage.

ARTICLE IX
VESSEL VETTING AND VESSEL RESPONSE PLAN

9.1      Pollution . HSM shall comply with the Marathon Petroleum Vetting Policy and shall maintain and implement a Vessel Response Plan (“ Plan ”) for the prevention and removal of pollution from water and natural resources, as required by any Applicable Law. Such Plan shall include appropriate response contractors to comply with Applicable Law. In the event of an unintentional discharge or significant threat of an unintentional discharge of Cargo transported under this Agreement, HSM shall promptly implement its Plan and undertake all such measures as may be reasonably necessary to prevent or mitigate pollution damage and perform all appropriate mitigation, regulatory notifications, and response. Additionally, HSM shall promptly notify MPC of any such unintentional discharge of Cargo. In the event an unintentional discharge of Cargo transported under this Agreement occurs, MPC may, at its option, but without obligation, and upon written notice to HSM, undertake such measures as are reasonably necessary to prevent or mitigate pollution damage resulting from such discharge. MPC shall keep HSM advised in advance in writing of the nature of the measures intended to be taken by it. Any of the aforementioned measures actually taken by MPC will be at HSM’s expense except to the extent that such discharge was caused by MPC, in which case such measures shall be for MPC’s expense. HSM agrees that it will not raise or plead as a defense to a claim for reimbursement by MPC that in undertaking or performing such measures, MPC acted as a volunteer and any such defense of “volunteer” is hereby waived by HSM. These provisions are not in derogation of any other right MPC or HSM may have under this Agreement or otherwise have or acquired under Applicable Law.

ARTICLE X
ASSIGNMENT

10.1      Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their permitted successors and assigns; provided , however , that neither Party may assign its rights or obligations under this Agreement without prior written consent from an Authorized Representative of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed; provided further , however , that either Party may assign its rights and obligations under this Agreement to a successor in interest resulting from any merger, reorganization, consolidation or as part of a sale of all or substantially all of its assets. Subject to the foregoing, this Agreement shall bind and inure to the benefit of each Party and its successors and permitted assigns.

ARTICLE XI
DEFAULTS AND REMEDIES

11.1      Events of Default . The occurrence or continuance of any of the following events will constitute a default of this Agreement by a Party (each an “ Event of Default ”):

(a)      failure to pay any undisputed amount due and payable to the other Party under this Agreement within ten (10) business days after such amount becomes due and payable and such failure is not remedied within a period of thirty (30) days of written notice of such failure from the other Party;

19





(b)      a Party becomes Bankrupt;

(c)      a Party fails to maintain insurance in accordance with Article VIII and fails to remedy such failure within five (5) days of written notice of such failure from the other Party;

(d)      a Party is in material breach of any of its other material obligations under this Agreement and fails to cure such breach to the reasonable satisfaction of the non-defaulting Party within forty-five (45) days of written notice of such breach from the non-defaulting Party; and

(e)      any representation, warranty or statement made by a Party herein proves to be untrue in any material respect on the date on which it was made.

11.2      Remedies .

(a) Termination . Upon the occurrence of an Event of Default by either Party, the non-defaulting Party shall have the right to terminate this Agreement effective immediately upon delivery of written notice to the defaulting Party.

(b) If this Agreement is terminated with respect to certain Equipment pursuant to Section 3.6 , then the Parties shall update Exhibit C to remove such Equipment therefrom.

ARTICLE XII
MISCELLANEOUS

12.1      Choice of Law; Dispute Resolution .

(a) Governing Law . This Agreement shall be subject to and governed by the laws of the State of New York, without regard to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any other jurisdiction.

(b) Mediation . If the Parties cannot resolve any Dispute or claim arising under this Agreement, then no earlier than ten (10) days nor more than sixty (60) days following written notice to the other Party, either Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “ Mediation Notice ”) to the other Party. In connection with any mediation pursuant to this Section 12.1(b) , the mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties, shall govern any mediation pursuant to this Section 12.1(b) . In the mediation, each Party shall be represented by one or more senior representatives who shall have authority to resolve any Disputes. If a Dispute has not been resolved within thirty (30) days after the receipt of the Mediation Notice by a Party, then any Party may refer the resolution of the Dispute to any federal or state court located in Ohio in accordance with Section 12.1(c) .

(c) Litigation . Each Party agrees that it shall bring any action or proceeding in respect of any Dispute or claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Ohio and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to

20




laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 12.6 . The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Ohio for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.

12.2      Waiver . Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by an Authorized Representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. No single or partial exercise of any right or remedy under this Agreement precludes any simultaneous or subsequent exercise of any other right, power or privilege.

12.3      Cumulative Remedies . The rights and remedies set forth in this Agreement are not exclusive of, but are cumulative to, any rights or remedies now or subsequently existing at law, in equity or by statute.

12.4      Compliance with Law . Each Party shall comply with all Applicable Laws.

12.5      Third Party Beneficiaries . Except to the extent otherwise provided in Article VII with respect to the rights of the Indemnified Party, the provisions of this Agreement are solely for the benefit of the Parties and their respective successors and permitted assigns and shall not confer upon any Third Party any remedy, claim, liability, reimbursement or other right. Notwithstanding Article VII , the Parties may rescind or vary this Agreement, in whole or in part, without the consent of any Third Party, and no Third Party shall be entitled to assign any benefit or right conferred upon it under this Agreement.
12.6      Notices . All notices, consents, directions, approvals, objections, refusals, instructions, requests, demands, and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given or delivered (a) when delivered personally; (b) if transmitted by facsimile, when confirmation of transmission is received; (c) if by email, when receipt of such email is acknowledged by return email; (d) if sent by registered or certified mail, postage prepaid, return receipt requested, on the third (3rd) business day after mailing; or (e) if sent by private courier, when received; and shall be addressed to the appropriate Party at its address specific below, or at such other address as such Party may specify by notice to the other Party:

Hardin Street Marine LLC
539 South Main Street
Findlay, OH 45840
Attention: President
Email address: tsandifer@marathonpetroleum.com

Marathon Petroleum Company LP
539 South Main Street

21





Findlay, Ohio 45840
Attention: General Counsel
Email address: jmwilder@marathonpetroleum.com

or such other address as such Party may indicate by a notice delivered in accordance with this Section 12.6 .

12.7      Mutual Obligations of Confidentiality .

(a) During the Term and for a period of three (3) years after the termination of this Agreement, each Party shall keep confidential the other Party’s Confidential Information, whether acquired before or after the Effective Date, and neither Party shall (i) use the other Party’s Confidential Information except in connection with the performance of its obligations under this Agreement or (ii) release or disclose the other Party’s Confidential Information to any Third Party other than a receiving Party’s representatives with a need to know the Confidential Information for the purposes of such Party’s performance pursuant to this Agreement.

(b) Each Party will be responsible for any breach of the provisions of this Section 12.7 by its representatives.

(c) The provisions of Section 12.7 do not apply to any Confidential Information to the extent that the receiving Party is required to disclose such information under any Applicable Laws or pursuant to any order of any court, mediator or arbitrator, or in connection with any legal proceeding, mediation or arbitration to enforce its rights under this Agreement, or in connection with the requirements of a regulatory body or stock exchange, or in connection with a financing, bond offering, or sale of stock.

(d) If a Party receives a subpoena or other demand for disclosure of Confidential Information received from any other Party or must disclose to a Governmental Authority any Confidential Information received from such other Party in order to obtain or maintain any required governmental approval, the receiving Party shall, to the extent legally permissible, provide notice to the providing Party before disclosing such Confidential Information. Upon receipt of such notice, the providing Party shall promptly either seek an appropriate protective order, waive the receiving Party’s confidentiality obligations hereunder to the extent necessary to permit the receiving Party to respond to the demand, or otherwise fully satisfy the subpoena or demand or the requirements of the applicable Governmental Authority. If the receiving Party is nonetheless legally compelled to disclose such Confidential Information or if the providing Party does not promptly respond as contemplated by this section, the receiving Party may disclose that portion of Confidential Information covered by the subpoena or other demand.

(e) Each Party acknowledges that the disclosing Party would not have an adequate remedy at law for the breach by the receiving Party of any one or more of the covenants contained in this Section 12.7 and agrees that, in the event of such breach, the disclosing Party shall, in addition to the other remedies that may be available to it, be entitled to injunctive relief for any violation of, and to enforce the terms of, this Section 12.7

12.8      Severability . The provisions of this Agreement are separable and severable. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under Applicable Law. If any one or more of the provisions contained herein is, for any reason, held to be invalid, illegal or unenforceable in whole or in part by any court of law or equity, then such provision or provisions shall be ineffective to the extent, but only to the extent, of such

22




invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable and the remaining provisions hereof shall continue in full force and effect to the greatest extent practicable.

12.9      Survival . Notwithstanding any suspension or termination of this Agreement, the Parties shall continue to be bound by the provisions of this Agreement that reasonably require some action or forbearance after such suspension or termination, including without limitation those relating to confidentiality obligations, audit rights, warranties, compliance with Applicable Laws, governing law, dispute resolution, indemnities, and limitation of liability.

12.10     Entire Agreement . This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the Parties with respect to such subject matter.

12.11     Amendment . This Agreement can only be amended, modified or supplemented by a written instrument signed by an Authorized Representative of the Parties.

12.12     Counterparts . This Agreement may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. Executed facsimiles of such counterparts shall be deemed enforceable to the same extent as if they were executed original documents.



[SIGNATURE PAGE FOLLOWS]


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IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their Authorized Representatives as of the date first above written.

 
Hardin Street Marine LLC
 
 
 
 
By:
/s/ M. Todd Sandifer
 
 
M. Todd Sandifer, President
 
 
 
 
Date:
December 17, 2015
 
 
 
 
 
 
 
Marathon Petroleum Company LP
 
By:
MPC Investment LLC, its General Partner
 
 
 
 
By:
/s/ John S. Swearingen
 
 
John S. Swearingen, Vice President
 
 
 
 
Date:
December 18, 2015
 
 
 


    

24




Exhibit A

CALCULATION AND ADJUSTMENT OF DAY RATE AND FLEETING CHARGES

Pursuant to Section 4.3 , and unless otherwise noted, the Day Rates and charges for Fleeting Services stated in Exhibit B , as well as the Tankerman Services rates listed on Exhibit G , will be adjusted on the dates listed on the following schedule pursuant to the corresponding calculation for that date:

Date
Calculation
1/1/2016
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2017
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2018
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2019
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2020
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2021
The rate currently in force will be adjusted to reflect then-current market rates.
1/1/2022
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2023
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2024
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2025
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2026
The rate currently in force will be adjusted to reflect then-current market rates.
1/1/2027
The rate currently in force will be adjusted upward two (2) percentage points.
1/1/2028
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2029
The rate currently in force will be adjusted upward two (2) percentage points
1/1/2030
The rate currently in force will be adjusted upward two (2) percentage points


A-1




Exhibit B

TRANSPORTATION SERVICES AND RATES



Equipment Category
Day Rate

C1 Barge Clean Small
$1,200
C2 Barge Clean 10K
$1,150
C3 Barge Clean 30K
$2,150
H2 Barge Heater 10K
$1,200
H3 Barge Heater 30K
$2,475
B1 Boat 1000-1999 HP
$5,600
B2 Boat 2000-2999 HP
$6,075
B3 Boat 3000-3999 HP
$6,825
B4 Boat 4000-4999 HP
$8,125


Transportation Service Monthly Rate
Fleeting Services
Mooring services for barges
Subject to Section 4.3(a):
2015: $258,333/month for all fleeting spaces.
2016 and after: 89 spaces* at a rate of $95.79/day.

Tankerman Services
U.S. Coast Guard licensed tankerman services for assurance of safe transfer of refined, chemical and liquefied gas cargoes.

Billed in aggregate monthly at hourly rates for each barge transfer, plus overtime rates for time in excess of eight hours, as listed on Exhibit G , plus mileage for travel by a tankerman in a personally owned vehicle at the Internal Revenue Service published standard mileage rate when traveling between work sites, or when called from home to report for tankerman duties.
Cleaning and Repair Facility Charges
Cleaning of Cargo tanks, voids, boat bilges and fuel/slop tanks. This includes labor, materials, and services.

Other routine repair and maintenance services at MPC facilities, including, but not limited to: labor and materials for welding, electrical, mechanical, and hose and pipe testing.
Billed in aggregate monthly at market rates for the number of hours required for each service. Labor is billed hourly; materials and supplies shall be billed at cost plus thirty percent.
*It is agreed between HSM and MPC that the number of fleeting spaces may adjust throughout this term which, subject Section 4.3(a) , may require a rate adjustment.


{402940.DOC } B-1




Exhibit C

EQUIPMENT *


Equipment Category
Quantity

C1 Barge Clean Small
28
C2 Barge Clean 10K
21
C3 Barge Clean 30K
128
H2 Barge Heater 10K
2
H3 Barge Heater 30K
32
B1 Boat 1000-1999 HP
2
B2 Boat 2000-2999 HP
5
B3 Boat 3000-3999 HP
5
B4 Boat 4000-4999 HP
6



Note: This list may be updated by Memorandum to File pursuant to Section 3.1(a) .




C-1




Exhibit D
AUTHORIZED REPRESENTATIVES

As to:

Marathon Petroleum Company LP

President and Chief Executive Officer
Any Vice President (including Senior Vice President and Executive Vice President) Treasurer
Any Assistant Treasurer


Hardin Street Marine LLC

President
Any Vice President/Treasurer


D-1




Exhibit E
TOWBOAT MECHANICAL AVAILABILITY CALCULATION and
TOWBOAT CREDIT CALCULATION

1.
Towboat Mechanical Availability Metric: A towboat is deemed 100% mechanically available if it can perform work at any given time. The towboat is not required to be active, but it must be available to do work.


2.
Calculation of Towboat Group Mechanical Availability :

(a)
Mechanical Availability is the percentage of time Equipment in the Towboat Group not under Force Majeure is capable of performing work during a Mechanical Availability Calculation Period. A towboat is deemed not capable of performing work during periods of scheduled downtime and unscheduled downtime. In accordance with the latest version of HSM’s Boat Mechanical Availability Metric Definition Document, HSM will gather data for this calculation from various sources, including but not limited to: (i) the HSM operation status updates (ii) HSM daily marine traffic reports (iii) HSM Maintenance Supervisor statements, and (iv) towboat activity logs.

(b)      Mathematically the formula is expressed as follows:
 
 
n
 
 
∑ (h i - f i  - s i -   u i )
 
 
i = 1
Mechanical Availability (%) =
 
 
 
 
 
 
n
 
 
∑ (h i  - f i )
 
 
i = 1

Where:
i=each individual towboat identified as Equipment in the Towboat Group at any time during the Mechanical Availability Calculation Period
n=the number of towboats identified as Equipment in the Towboat Group at any time during the Mechanical Availability Calculation Period
h=number of hours each individual towboat (i) is in the Towboat Group during the Mechanical Availability Calculation Period
f=number of hours each individual towboat (i) in the Towboat Group during the Mechanical Availability Calculation Period is under Force Majeure
s= number of hours each individual towboat (i) in the Towboat Group during the Mechanical Availability Calculation Period has encountered scheduled downtime
u= number of hours each individual towboat (i) in the Towboat Group during the Mechanical Availability Calculation Period has encountered unscheduled downtime
Scheduled downtime means towboat unavailability to perform work due to scheduled mechanical activities such as regulatory inspections, planned maintenance/repairs, dry docking, overhaul or other planned work. Scheduled downtime begins when a towboat is dry docked or physically unable to perform transportation services at the start of the planned maintenance/repair work (including cleaning or preparation work), as appropriate, and ends when a towboat is capable of moving a Cargo.
Unscheduled downtime means towboat unavailability to perform work due to unscheduled mechanical activities such as equipment malfunctions, process failures, and downtime associated

D-1




with accidents. Unscheduled downtime does not include Force Majeure Events or circumstances such as weather related events/delays, lock delays, traffic delays, loading/unloading delays, demurrage time, unplanned drills/inspections, fueling, routine maintenance, etc. Unscheduled downtime begins when a towboat is not capable of moving a Cargo or performing work and ends when such towboat is capable of moving a Cargo or performing work.

3. Calculation of Credit for Towboat Group

(a) If Mechanical Availability for the Mechanical Availability Calculation Period ≥ 95% then MPC is not due a Credit for Mechanical Availability

(b) If Mechanical Availability for the Mechanical Availability Calculation Period < 95% then MPC is due a Credit for Mechanical Availability calculated as follows:
n
[95%-MA] * ∑ [(r i * (d i - f i )]
i = 1

Where :
MA=Mechanical Availability for the Mechanical Availability Calculation Period
i=each individual towboat identified as Equipment in the Towboat Group at any time during the Mechanical Availability Calculation Period
n=the number of towboats identified as Equipment in the Towboat Group at any time during the Mechanical Availability Calculation Period
r=the day rate for each individual towboat (i) in the Towboat Group during the Mechanical Availability Calculation Period
d= number of days* each individual towboat (i) is in the Towboat Group during the Mechanical Availability Calculation Period
f=number of days* each individual towboat (i) in the Towboat Group during the Mechanical Availability Calculation Period is under Force Majeure
* A day can be partial, e.g., 15 hours = .625 days

4. For illustration purposes, the following is a sample calculation based on the listed assumptions using full days (24 hours):

I.
Assumptions:

1)
Mechanical Availability Calculation Period January 1-December 31
2)
Towboat #1
a.
On Exhibit C as Equipment January 1- December 31 (365 days)
b.
January 1-June 30 capable to do work (181 Days)
c.
July 1-July 15 scheduled downtime (15 days)
d.
July 16-October 15 capable to do work (92 Days)
e.
October 16-October 25 unscheduled downtime (10 days)
f.
October 25-November 30 capable to do work (36 days)
g.
December 1-December 31 Force Majeure (31 days)
h.
Day Rate= $6000
3)
Towboat #2
a.
On Exhibit C as Equipment January 1-March 31 (90 days)
b.
January 1-January 7 unscheduled maintenance (7 days)
c.
January 8-March 31 capable to do work (83 days)

D-2





d.
Day Rate=$7000

4)
Towboat #3
a.
On Exhibit C as Equipment July 1-December 31 (184 days)
b.
July 1-September 15 capable to do work (77 days)
c.
September 16-September 21 unscheduled downtime (6 days)
d.
September 22-December 31 capable to do work (101days)
e.
Day Rate=$7000

5)
Towboat #4
a.
On Exhibit C as Equipment May 1-December 31 (245 days)
b.
May 1-May 31 capable to do work ( 31 days)
c.
June 1-June 10 scheduled downtime (10 days)
d.
June 11-December 26 capable to do work (199 days)
e.
December 27-December 31 Force Majeure (5 days)
f.
Day Rate=$7000


II.
Example calculation of Mechanical Availability for Towboat Group
Towboat Group
(365+90+184+245)    - (31+0+0+5)    -    (15+0+0+10)    - (10+7+6+0   )
 
Mechanical =
 
 = 94.34%
 
 
 
Availability
(365+90+184+245)    - (31+0+0+5)
 

III.
Example calculation of the Credit for Towboat Group

1)
If the Towboat Group Mechanical Availability was equal to or greater than 95% no Credit would be due for the example Mechanical Availability Calculation Period
2)
Since the Towboat Group Mechanical Availability is less than 95% in this example, a Credit is due and needs to be calculated.

3)
Calculation of Credit for Towboat Group is as follows:

[95%-94.34%] * [($6000* (365-31)) + ($7000* (90-0)) - ($7000* (184-0))+ ($7000* (245-5))] = $36,973.20



D-3




Exhibit F
BARGE MECHANICAL AVAILABILITY CALCULATION and
BARGE CREDIT CALCULATION

1.
Barge Mechanical Availability Metric : A barge is deemed 100% mechanically available if it can perform work at any given time. The barge is not required to be active, but it must be available to do work.


2.
Calculation of Barge Group Mechanical Availability :

(a)
Mechanical Availability is the percentage of time Equipment in the Barge Group not under Force Majeure is capable of performing work during a Mechanical Availability Calculation Period. A barge is deemed not capable of performing work during periods of scheduled downtime and unscheduled downtime. In accordance with the latest version of HSM’s Barge Mechanical Availability Metric Definition Document, HSM will gather data for this calculation from various sources, including but not limited to: (i) the HSM barge inspector reports (ii) HSM maintenance planning meetings, and (iii) operations and maintenance management systems.

(b)
Mathematically the formula is expressed as follows:
 
 
n
 
 
∑ (h i - f i  - s i -   u i )
 
 
i = 1
Mechanical Availability (%) =
 
 
 
 
 
 
n
 
 
∑ (h i  - f i )
 
 
i = 1

Where:
i=each individual barge identified as Equipment in the Barge Group at any time during the Mechanical Availability Calculation Period
n=the number of barges identified as Equipment in the Barge Group at any time during the Mechanical Availability Calculation Period
h=number of hours each individual barge (i) is in the Barge Group during the Mechanical Availability Calculation Period
f=number of hours each individual barge (i) in the Barge Group during the Mechanical Availability Calculation Period is under Force Majeure
s= number of hours each individual barge (i) in the Barge Group during the Mechanical Availability Calculation Period has encountered scheduled downtime
u= number of hours each individual barge (i) in the Barge Group during the Mechanical Availability Calculation Period has encountered unscheduled downtime

Scheduled downtime means the cumulative number of days that the barges are unavailable to perform work due to scheduled mechanical activities such as regulatory inspections, planned maintenance/repairs, dry docking, overhaul or other planned work. Scheduled downtime begins when a barge is docked or at the start of the planned maintenance/repair work (including cleaning or preparation work), as appropriate, and ends when a barge is capable of moving a Cargo.

F-1






Unscheduled downtime means barge unavailability to perform work due to unscheduled mechanical activities such as equipment malfunctions, process failures, and downtime associated with accidents. Unscheduled downtime does not include Force Majeure Events or circumstances such as weather related events/delays, lock delays, traffic delays, loading/unloading delays, demurrage time, unplanned drills/inspections, fueling, routine maintenance, etc. Unscheduled Downtime begins when a barge is docked prior to the beginning maintenance and repair, including cleaning and prep work and ends when such barge is capable of moving a Cargo or performing work.

3. Calculation of Credit for Barge Group
(a) If Mechanical Availability for the Mechanical Availability Calculation Period ≥ 95% then MPC is not due a Credit for Mechanical Availability
(b) If Mechanical Availability for the Mechanical Availability Calculation Period < 95% then MPC is due a Credit for Mechanical Availability calculated as follows:
n
[95%-MA] * ∑ [(r i * (d i - f i )]
i = 1

Where :
MA=Mechanical Availability for the Mechanical Availability Calculation Period
i=each individual barge identified as Equipment in the Barge Group at any time during the Mechanical Availability Calculation Period
n=the number of barges identified as Equipment in the Barge Group at any time during the Mechanical Availability Calculation Period
r=the day rate for each individual barge (i) in the Barge Group during the Mechanical Availability Calculation Period
d= number of days* each individual barge (i) is in the Barge Group during the Mechanical Availability Calculation Period
f=number of days* each individual barge (i) in the Barge Group during the Mechanical Availability Calculation Period is under Force Majeure
* A day can be partial, e.g., 15 hours = .625 days


4. For illustration purposes, the following is a sample calculation based on the listed assumptions using full days (24 hours):
I.
Assumptions:
1)
Mechanical Availability Calculation Period January 1-December 31
2)
Barge #1
a.
On Exhibit C as Equipment January 1- December 31 (365 days)
b.
January 1- December 15 capable to do work (349 days)
c.
December 16-December 31 Force Majeure (16 days)
d.
Day Rate= $1000
3)
Barge #2
a.
On Exhibit C as Equipment January 1-December 31(365 days)
b.
January 1-April 30 capable to do work (120 days)
c.
May 1-May 15 unscheduled downtime (15 days)
d.
May 16-June 30 capable to do work (46 days)

F-2





e.
July 1- July 2 scheduled downtime (2 days)
f.
July 3 – December 31 capable to do work (182 days)
g.
Day Rate=$2000

4)
Barge #3
a.
On Exhibit C as Equipment January 1- May 31(151days)
b.
January 1- January 21 capable to do work (21 days)
c.
January 22-February 20 unscheduled downtime (30 days)
d.
February 21 –May 31 capable to do work (100 days)
e.
Day Rate=$2000

5)
Barge #4
a.
On Exhibit C as Equipment April 1- November 30 (244 days)
b.
April 1- May 31 capable to do work ( 61 days)
c.
June 1-June 10 scheduled downtime (10 days)
d.
June 11-June 30 capable to do work (20 days)
e.
July 1 – October 31 capable to do work (123 days)
f.
November 1- November 10 unscheduled downtime (10 days)
g.
November 11-November 30 capable to do work (20 days)
h.
Day Rate=$1000

II.
Example calculation of Mechanical Availability for Towboat Group

Towboat Group
(365+365+151+244)    - (16+0+0+0)    -    (0+2+0+10)    - (0+15+30+10   )
 
Mechanical =
 
 = 93.96%
 
 
 
Availability
(365+365+151+244)    - (16+0+0+0)
 

                                                                         
III.
Example calculation of the Credit for Barge Group

1)
If the Barge Group Mechanical Availability was equal to or greater than 95% no Credit would be due for the example Mechanical Availability Calculation Period

2)
Since the Barge Group Mechanical Availability is less than 95% in this example, a Credit is due and needs to be calculated.

3)
Calculation of Credit for Towboat Group

[95%-93.96%] * [($1000* (365-16)) + ($2000* (365-0)) - ($2000* (151-0))+ ($1000* (244-0))] = $16,900

F-3






Exhibit G
TANKERMAN SERVICES RATES



F-4


FIRST AMENDMENT TO AMENDED AND RESTATED TRANSPORTATION SERVICES AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED TRANSPORTATION SERVICES AGREEMENT (“ AMENDMENT ”) is entered into on March 31, 2016 by and between Marathon Petroleum Company LP, a Delaware limited partnership with an address of 539 South Main Street, Findlay, Ohio 45840 (hereinafter “ MPC ”), and Hardin Street Marine LLC, a Delaware limited liability company with an address of 539 South Main Street, Findlay, Ohio 45840 (hereinafter “ HSM ”).

RECITALS

WHEREAS, MPC and HSM previously entered into that certain Amendment and Restated Transportation Services Agreement effective as of the 1st day of January, 2015 (the “ A&R TSA ”); and

WHEREAS, pursuant to Section 11.1(a) of the A&R TSA, MPC and HSM now desire to amend and restate certain sections of the A&R TSA.

NOW, THEREFORE, for and in consideration of the forgoing and mutual agreements herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HSM and MPC hereby amend and restate Sections 8.1, 8.2 and 8.3 of the A&R TSA in their entirety as follows:

8.1     Corporate Group Insurance . Without limiting the scope of any of HSM’s obligations or liabilities under this Agreement, MPC shall cause its affiliate Marathon Petroleum Corporation (“Marathon”) to procure and maintain, in HSM’s name and at HSM’s sole cost and expense, and keep in effect during the Term, the following insurances within Marathon’s corporate wide policies with insurance companies designated by A.M. Best Company with a rating of A- or better:

(a)    Workers’ Compensation and U.S. Longshore and Harbor Workers’ Compensation Act Insurance sufficient to comply fully with requirements and coverages specified by all Applicable Laws covering any employees of HSM performing the Transportation Services and require any third party who may provide personnel performing the Transportation Services provided or caused to be provided to HSM pursuant to the Amended and Restated Employee Services Agreement to procure applicable insurance coverage.

(b)    Marine General Liability Insurance naming HSM as an additional assured with combined single limits of at least $2,000,000 per occurrence.

(c)    Excess Coverage naming HSM as an additional assured in the amount necessary to achieve insurance liability limits of $10,000,000 in total for all insurable risks with such limits to be achieved through any combination of above primary and excess coverages.

    



(d)    Hull and Machinery, Increased Value, and War Risks policies (which shall include collision liability and tower’s liability) covering up to one hundred twenty five percent (125%) of the agreed hull value of HSM’s fleet of towboats and barges.

(e)    Pollution Insurance in an amount equal to the maximum carried by HSM, but never less than the amount necessary to comply with the minimum financial responsibility requirements established by any Applicable Law, or $100,000,000, whichever is greater.

(f)    Protection and Indemnity Insurance standard for the industry, including contractual liability coverage and sistership clause unamended, endorsed specifically to include (a) collision liability, (b) in rem claims, stating that such actions shall be treated as a claim against the insured in personam and (c) full crew coverage including wages, maintenance and cure, with a limit of at least $2,000,000 per occurrence.

8.2    [Intentionally Left Blank]

8.3     Certificates .    Prior to the performance of Transportation Services hereunder and upon request from HSM, MPC shall furnish to HSM certificates for the insurances identified in Section 8.1 , in each case showing (a) all insurance coverages and endorsements required by this Agreement and (b) a statement from the relevant insurance provider that the insurance will not be materially changed, canceled, or permitted to expire without at least thirty (30) days’ prior written notice to HSM. Upon request from HSM, MPC shall provide supplements and amendments to such certificates to demonstrate that the insurance identified in Section 8.1 and the related endorsements remain in effect. HSM’s acceptance of an insurance certificate that does not comply with this Agreement does not waive any requirement of this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Amendment to be signed by their authorized representatives as of the date first above written.

 
Hardin Street Marine LLC
 
 
 
 
By:
/s/ M. Todd Sandifer
 
 
M. Todd Sandifer, President
 
 
 
 
Date:
March 28, 2016
 
 
 
 
 
 
 
Marathon Petroleum Company LP
 
By:
MPC Investment LLC, its General Partner
 
 
 
 
By:
/s/ John S. Swearingen
 
 
John S. Swearingen, Senior Vice President
 
 
 
 
Date:
March 30, 2016

    


AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT

This AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT (this “ Agreement ”) is entered into as of the Effective Date by and between Marathon Petroleum Company LP, a Delaware limited partnership with an address of 539 South Main Street, Findlay, Ohio 45840 (“ MPC ”) and Hardin Street Marine LLC, a Delaware limited liability company with an address of 539 South Main Street, Findlay, Ohio 45840 (“ HSM ”).

RECITALS

WHEREAS, MPC conducts marine operations in connection with MPC’s shipment of Product using towboats, barges, docks, other equipment and related facilities owned, leased and chartered by HSM (“ HSM Assets ”);
    
WHEREAS, MPC desires that HSM provide certain services to assist MPC in the oversight and management of its marine operations;

WHEREAS, MPC and HSM previously entered into that certain Management Services Agreement on the 1st day of January, 2015 (“ Original MSA ”);

WHEREAS, pursuant to Section 9.3 of the Original MSA, MPC and HSM now desire to amend and restate the terms and conditions contained in the Original MSA; and

NOW, THEREFORE, for and in consideration of the premises and the mutual benefits, covenants and agreements herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby amend and restate the Original MSA in its entirety as follows:

ARTICLE I DEFINITIONS
1.1      Definitions . As used in this Agreement:
(a)      Affiliates ” means, as to any specified Person, any other Person that, directly or indirectly through one (1) or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified Person. For purposes of the foregoing, “control”, “controlled by”, and “under common control with” with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, member or partnership interests, by contract or otherwise. For the purposes of this Agreement, HSM shall not be considered an Affiliate of MPC, nor shall MPC or any of its Affiliates other than HSM be considered an Affiliate of HSM.
(b)      Agreement ” means this Amended and Restated Management Services Agreement and all Exhibits referenced in and attached to this Agreement and all amendments, modifications and changes thereto.

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(c)      Amended and Restated Employee Services Agreement ” means the Amended and Restated Employee Services Agreement effective as of January 1, 2015 between Marathon Petroleum Logistics Services LLC and HSM.
(d)      Applicable Law ” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having jurisdiction over the matter or matters in question, whether now or hereafter in effect.
(e)      Availed Party ” has the meaning set forth in Section 6.2(a) .
(f)      Bankrupt ” means, with respect to any Person, that such Person (i) becomes insolvent or unable to pay its debts as they become due; (ii) commences any case, proceeding or other action under any existing or future law seeking to enter into any composition or other arrangement for the benefit of its creditors generally or any class of creditors; (iii) applies for, consents to, or acquiesces in, the appointment of a trustee, receiver, sequestrator or other custodian for such Person or any of its property, or makes a general assignment for the benefit of creditors; (iv) in the absence of such application, consents or acquiesces in, permits or suffers to exist the appointment of a trustee, receiver, sequestrator, intervenor, mediator or other custodian for such Person or for a substantial part of its property, and such trustee, receiver, sequestrator, intervenor, mediator or other custodian is not discharged within sixty (60) days; (v) permits or suffers to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, liquidation, winding up or liquidation proceeding, in respect of such Person and, if any such case or proceeding is not commenced by such Person, such case or proceeding is consented to or acquiesced in by such Person or results in the entry of an order for relief or remains undismissed or unstayed for sixty (60) days; or (vi) takes any corporate action authorizing, or in furtherance of, any of the foregoing.
(g)      Claims and Liabilities ” means all suits, sanctions, actions, liabilities, legal proceedings, government fines and penalties, pollution clean-up, damages to natural resources, claims, demands, losses, damages, costs, expenses, or causes of action of every kind and character, including all claims that may exist, arise, or be threatened currently or in the future at any time following the Effective Date and whether or not of a type contemplated by any Party at any time following the Effective Date.
(h)      Confidential Information ” means any proprietary or confidential information that is competitively sensitive material or otherwise of value to a Party or its Affiliates and not generally known to the public, including trade secrets, scientific or technical information, design, invention, process, procedure, formula, improvements, product planning information, marketing strategies, financial information, information regarding operations, consumer and/or customer relationships, consumer and/or customer identities and profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of a Party or its Affiliates and the consumers, customers, clients and suppliers of any of the foregoing. Confidential Information includes such information as may be contained in or embodied by documents, substances, engineering and laboratory notebooks, reports, data,

2




specifications, computer source code and object code, flow charts, databases, drawings, pilot plants or demonstration or operating facilities, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation (including data in computer or other digital format) of the foregoing; provided , however , that Confidential Information does not include information that a receiving Party can show (A) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement, (B) has been furnished or made known to the receiving Party by a Third Party under circumstances that are not known to the receiving Party to involve a breach of the Third Party’s obligations to the disclosing Party or (C) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.
(i)      Dispute ” means any dispute or difference of whatsoever nature arising under, out of, in connection with or in relation (in any manner whatsoever) to this Agreement or the subject matter of this Agreement.
(j)      Effective Date ” means January 1, 2015.
(k)      Event of Default ” has the meaning set forth in Section 9.1 .
(l)      Extension Period ” has the meaning set forth in Section 2.1 .
(m)      Force Majeure Event ” means any event or circumstance that is beyond the reasonable control of a Party and which the affected Party is not able to overcome through the exercise of commercially reasonable efforts that prevents or delays the affected Party from complying, either totally or in part, with any of its obligations under this Agreement. Provided that they satisfy the preceding sentence, Force Majeure Event shall include fire, flood, storm, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel, power, raw materials or components, equipment failure, any law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any Governmental Authority, riot, civil commotion, war, rebellion, act of terrorism, nuclear or other accident, explosion, casualty, pandemic, or act of God, or act, omission or delay in acting by any Governmental Authority or military authority or Third Party or any other cause, whether or not of a class or kind listed in this sentence.
(n)      Force Majeure Notice ” has the meaning set forth in Section 3.4(a) .
(o)      Governmental Authority ” means the government of any nation or any political subdivision thereof, whether at the national, state, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.
(p)      HSM ” has the meaning set forth in the preamble.
(q)      HSM Assets ” has the meaning set forth in the Recitals.

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(r)      HSM Indemnified Parties ” means HSM and each of its directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(s)      Indemnified Party ” means a Party receiving indemnification from the other Party in accordance with the terms of this Agreement.
(t)      Indemnifying Party ” means a Party providing indemnification to the other Party in accordance with the terms of this Agreement.
(u)      Initial Term ” has the meaning set forth in Section 2.1 .
(v)      Interest Rate ” means the rate per annum equal to LIBOR plus one percent (1%). Any interest payable hereunder shall accrue from day to day and be calculated on the basis of a three hundred sixty-five (365) day year.
(w)      LIBOR ” means, on a particular day, the rate per annum for three (3) month deposits in USD which appears on the Reuters screen “LIBO Page” at or about 11 a.m. (London time) on the first day of the period for which interest is to be calculated, or, if such day is not a day on which banks are open for business in London, on the next following day on which banks are open for business in London. If Reuters information service fails to display such rate on any day when a rate is to be determined as aforesaid, but such rate is so displayed on Bridge Telerate or is available directly from the Intercontinental Exchange (ICE) Benchmark Administration Limited (or any other Person that takes over the administration of that rate), it shall be determined from that source accordingly.
(x)      Management Fee Rates ” has the meaning set forth in Section 4.2 .
(y)      Management Services ” has the meaning set forth in Section 3.1 .
(z)      Mediation Notice ” has the meaning set forth in Section 10.2(b) .
(aa)      MPC ” has the meaning set forth in the preamble.
(bb)      MPC Indemnified Parties ” means MPC, each of its Affiliates, and each of their respective directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(cc)      MPC’s Marine Vetting Policy ” means the Marathon Petroleum Vetting Policy, as revised as of May 30, 2014, developed by MPC, and given to HSM, for approving the use of petroleum tank vessels and gas carriers for MPC and its Affiliates, as amended, revised and updated from time to time by MPC.
(dd)      Original MSA ” has the meaning set forth in the recitals.
(ee)      Party ” means MPC or HSM, as applicable.

4





(ff)      Person ” means a natural person, corporation, partnership, limited liability company, joint stock company, trust, estate, joint venture, union, association or unincorporated organization, Governmental Authority or any other form of business or professional entity.
(gg)      Product ” means crude oil, feedstocks, light products, heavy oils, specialty chemicals and refined petroleum products.
(hh)      Security Regulations ” has the meaning set forth in Section 6.2(a) .
(ii)      Special Assignment Service ” has the meaning set forth in Section 3.2 .
(jj)      Systems ” has the meaning set forth in Section 6.2(a) .
(kk)      Term ” has the meaning set forth in Section 2.1 .
(ll)      USD ” or “ $ ” or “ dollar ” means the lawful currency from time to time of the United States of America.
(mm)      Third Party ” means a Person that is not a Party or an Affiliate of a Party.
1.2      Interpretation . In this Agreement, unless the context clearly indicates otherwise:
(a) words used in the singular include the plural, and words used in the plural include the singular;

(b) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement;

(c) any reference to any gender includes the other gender;

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”;

(e) any reference to any Article, Section or Exhibit means such Article or Section of, or such Exhibit to, this Agreement, as the case may be, and references in any Article, Section or Exhibit to any clause means such clause of such Article, Section or Exhibit;

(f) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof;

(g) any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time;

(h) any reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or

5




reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

(i) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including”;

(j) if there is any conflict between the provisions of the main body of this Agreement and the Exhibits, the provisions of the main body of this Agreement shall control, unless explicitly stated otherwise in such Exhibit;

(k) the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;

(l) the language of this Agreement shall be deemed to be the language the Parties have chosen to express their mutual intent, and no rule of strict construction shall be applied against either Party; and

(m) the Schedules and Exhibits form part of this Agreement and shall have the same force and effect as if set out in the body of this Agreement and any reference to this Agreement shall include the Schedules and Exhibits.

ARTICLE II
APPOINTMENT AND TERM
2.1      Term . This Agreement is effective for a time period commencing on the Effective Date and shall continue for a period of six (6) years (the “ Initial Term ”) or the end of any Extension Period unless terminated earlier pursuant to the terms hereof. This Agreement will automatically renew for up to two (2) additional renewal terms of five (5) years each (each, an “ Extension Period ”), unless either Party provides the other Party with written notice of its intent to terminate this Agreement at least twelve (12) months prior to the end of the then-current Term. The Initial Term and Extension Periods, if any, shall be referred to in this Agreement collectively as the “ Term ”.
ARTICLE III
PERFORMANCE OF SERVICES
3.1      Agreement to Provide Management Services . During the Term, HSM shall provide, or cause to be provided, certain services to MPC, as described in Exhibit A , as well as any Special Assignment Services that HSM agrees to provide to MPC in accordance with Section 3.2 (the “ Management Services ”). At all times during the Term, HSM shall:
(a)      have the authority to act on behalf of MPC in connection with the performance of the Management Services pursuant to this Agreement; and
(b)      perform all Management Services hereunder in a highly professional manner using reasonable care and diligence in accordance with all Applicable Laws.

6





3.2      Special Assignments . If MPC requests in writing to HSM a service not covered by the Management Services being provided pursuant to this Agreement as of the date of the request, and HSM agrees to provide such service (a “ Special Assignment Service ”), then HSM shall provide such Special Assignment Service in accordance with the terms and conditions of this Agreement or as otherwise agreed and set forth in Exhibit A and Exhibit B.
3.3      Disclaimer of Warranties . EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HSM MAKES NO, AND EXPRESSLY DISCLAIMS ANY, WARRANTIES WHATSOEVER WITH RESPECT TO THE MANAGEMENT SERVICES, INCLUDING ANY (A) WARRANTY OF MERCHANTABILITY; OR (B) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; OR (C) WARRANTY OF TITLE; OR (D) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.
3.4      Force Majeure .
(a)      As soon as possible following the occurrence of a Force Majeure Event, the Party affected by the Force Majeure Event shall promptly notify the other Party in writing of the occurrence of such Force Majeure Event (a “ Force Majeure Notice ”). Concurrent with that notice or as soon as possible thereafter, the affected Party shall give the other Party a full description of the Force Majeure Event and the approximate length of time that the affected Party reasonably believes such Force Majeure Event will continue. Each Party shall use commercially reasonable efforts to mitigate or overcome the effects of such Force Majeure Event as soon as possible; provided , however , that neither Party shall be required to settle any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interest. It is understood that the settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party.
(b)      If HSM is unable to provide any of the Management Services due to a Force Majeure Event, then MPC shall have the right, but not the obligation, to engage subcontractors to perform such services for the duration of the Force Majeure Event, it being agreed that any Management Fee Rates paid or payable by MPC under this Agreement with respect to the Management Service affected by such Force Majeure Event shall be reduced (or refunded, if applicable) on a dollar-for-dollar basis for all amounts paid by MPC to such subcontractors; provided , however , that HSM shall not be responsible for the amount of fees paid by MPC to any such subcontractors to perform such services to the extent such fees exceed the Management Fee Rates for the applicable period of the Force Majeure Event.
3.5      No Partnership . This Agreement shall not be interpreted or construed to create an association, agency, partnership, joint venture, employment or fiduciary relationship or similar relationship between HSM and MPC. Except as explicitly set forth in this Agreement, neither Party shall have any right, power or authority to enter into any agreement or undertaking for, act on behalf of, act or be an agent or representative of, or otherwise bind, the other Party. HSM shall act as an independent contractor in the performance of its duties hereunder.

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ARTICLE IV
EMPLOYMENT OF PERSONNEL; COMPENSATION
4.1      Personnel . HSM may utilize its own employees or the employees of other Persons, including those of Third Party contractors, to provide the Management Services. HSM will use commercially reasonable efforts to confirm that any such personnel are qualified to perform the Management Services in accordance with the terms and upon the conditions set forth in this Agreement.
4.2      Management Fee . Subject to Section 3.4(b) , MPC shall pay HSM monthly the fees stated in Exhibit B (the “ Management Fee Rates ”).
4.3      Invoicing; Late Payments; Disputed Payments .
(a)    Within twenty (20) days following the end of each month during the Term, HSM will submit to MPC for payment a written invoice for the amounts due under this Agreement for such month, including any expenses to be reimbursed by MPC in accordance with Section 4.4 . MPC shall pay all amounts due pursuant to an invoice within ten (10) days after receipt of such invoice. MPC shall not offset any amounts owing to it by HSM against amounts payable hereunder.
(b)    If MPC fails to make payment of any sum as and when due under this Agreement, then MPC shall pay interest thereon to HSM at the Interest Rate (as in effect on the day when such sum was originally due) on and from the day when payment was due until the date of payment.
(c)    MPC may contest the amount of any invoice, provided that MPC notifies HSM in writing of the contested amount and specifies the reason(s) therefor within ninety (90) days following the end of the calendar year during which the relevant Management Services were performed. MPC shall timely pay any disputed items in full while resolution of the dispute is pending; provided , however , that HSM shall pay interest at the Interest Rate on any amounts it is required to return to MPC upon resolution of the dispute. Payment of the uncontested amount shall not constitute approval thereof.
4.4      Reimbursement of Expenses . Monthly, to the extent incurred by HSM, MPC shall reimburse HSM for each of the following:
(a) all documented reasonable costs and expenses incurred by HSM in providing any Special Assignment Service, including lodging, travel and Third Party contractor activities;

(b) any reasonable costs incurred by HSM in acquiring or in providing MPC’s business partners with any of the detailed data analyses set forth on Exhibit A under “Commercial and Analytical Services”;

(c) any reasonable costs incurred by HSM in complying with any new or change in Applicable Law occurring after the Effective Date that affects the Management Services provided by HSM under this Agreement, provided that (i) compliance by HSM with any such

8




new or change in Applicable Law requires capital expenditures by HSM and (ii) HSM has made efforts to mitigate the capital expenditures required by such Applicable Law;

(d) all taxes (other than income taxes, gross receipt taxes, ad valorem taxes, property taxes and similar taxes) incurred by HSM on MPC’s behalf with respect to the Management Services provided under this Agreement, to the extent such reimbursement is not prohibited by Applicable Law; and

(e) the actual costs of any capital expenditures HSM agrees to make at MPC’s request, to the extent such costs are actually incurred by HSM.

4.5      Adjustment of Management Fee . The Management Fee Rates set forth in Section 1 of Exhibit B shall be fixed until December 31, 2016 and, thereafter, such rates shall be adjusted upward annually, on the first day of the month following each anniversary of the Effective Date, by 2.5 percentage points (2.5%). The Management Fee Rates set forth in Section 2 and Section 3 of Exhibit B shall be fixed until December 31, 2015 and, thereafter, such rates shall be adjusted upward annually, on the first day of the month following each anniversary of the Effective Date, by 2.5 percentage points (2.5%).
4.6      Taxes . To the extent required by Applicable Law, HSM shall add to any Management Fee Rates due under this Agreement amounts equal to any sales, use or similar taxes, however designated or levied, based upon the provision of the Management Services performed hereunder. HSM is solely responsible for the collection and remittance of any such taxes to the appropriate tax authorities. The Parties will cooperate with each other to minimize any such taxes to the extent reasonably practicable. If additional taxes are determined to be due with respect to the Management Services provided hereunder as a result of (a) an audit by any applicable tax authority, or (b) a new or change in Applicable Law, then MPC shall reimburse HSM for the additional taxes due from HSM, including interest and penalties. MPC has the right to contest with the tax authority, at MPC’s sole expense, the amount of any taxes or the result of any audit. HSM is responsible for any penalty or interest resulting from its failure to remit any invoiced taxes. Notwithstanding anything in this Agreement to the contrary, this Section 4.6 will, to the fullest extent permitted by Applicable Law, survive the termination of this Agreement and remain in effect until the expiration of the relevant statutes of limitations.
ARTICLE V
RECORDS
5.1      Records; Audit .
(a)    During the Term, HSM shall file, store and maintain such records, reports and other documents, including construction and maintenance records, inspection and testing records, ownership documents, operating agreements, drawings, and descriptions of or pertaining to the performance of the Management Services as are required by Applicable Laws or as may be reasonably requested by MPC. Upon written request by MPC, HSM shall furnish to MPC all such information, documents and reports as may be reasonably required for MPC's internal purposes or by any Governmental Authority.

9





(b)    MPC and its duly authorized representatives may, at MPC’s sole expense and at reasonable times and upon reasonable advance notice, but not more often than once in any calendar year, audit the books and records of HSM with respect to the Management Services provided under this Agreement. Any audit of a particular calendar year must commence during the one (1) year period (or such longer period as the Parties may agree) following the end of such year. Nothing herein shall limit MPC’s ability to have full access, at all reasonable times, to MPC’s books, accounts, records and all other documents, of whatever nature, in the possession or control of HSM, whether prepared by HSM or otherwise.
ARTICLE VI
CONFIDENTIALITY; SYSTEM SECURITY
6.1      Confidentiality .
(a)      During the Term and for a period of three (3) years after the termination of this Agreement, each Party shall keep confidential the other Party’s Confidential Information, whether acquired before or after the Effective Date, and neither Party shall use the other Party’s Confidential Information except in connection with the performance of its obligations under this Agreement...
(b)      Each Party shall be responsible for any breach of this Section 6.1 by any of its representatives.
(c)      The provisions of this Section 6.1 do not apply to any Confidential Information to the extent that the receiving Party is required to disclose such information under any Applicable Laws or pursuant to any order of any court, mediator or arbitrator, or in connection with any legal proceeding, mediation or arbitration to enforce its rights under this Agreement, or in connection with the requirements of a regulatory body or stock exchange, or in connection with a financing, bond offering, or sale of stock.
(d)      If a Party receives a subpoena or other demand for disclosure of Confidential Information received from any other Party or must disclose to a Governmental Authority any Confidential Information received from such other Party in order to obtain or maintain any required governmental approval, the receiving Party shall, to the extent legally permissible, provide notice to the providing Party before disclosing such Confidential Information. Upon receipt of such notice, the providing Party shall promptly either seek an appropriate protective order, waive the receiving Party’s confidentiality obligations hereunder to the extent necessary to permit the receiving Party to respond to the demand, or otherwise fully satisfy the subpoena or demand or the requirements of the applicable Governmental Authority. If the receiving Party is nonetheless legally compelled to disclose such Confidential Information or if the providing Party does not promptly respond as contemplated by this section, the receiving Party may disclose that portion of Confidential Information covered by the subpoena or other demand.
(e)      Each Party acknowledges that the disclosing Party would not have an adequate remedy at law for the breach by the receiving Party of any one or more of the covenants contained in this Section 6.1 and agrees that, in the event of such breach, the disclosing Party

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shall, in addition to the other remedies that may be available to it, be entitled to injunctive relief for any violation of, and to enforce the terms of, this Section 6.1 .
6.2      System Security .
(a)      If any Party is given access to the other Party’s computer systems or software (collectively, “ Systems ”) in connection with the Management Services, the Party given access (the “ Availed Party ”) shall comply with all of the other Party’s system security policies, procedures and requirements that have been provided to the Availed Party in advance and in writing (collectively, the “ Security Regulations ”), and shall not tamper with, compromise or circumvent any security or audit measures employed by such other Party. The Availed Party shall access and use only those Systems of the other Party for which it has been granted the right to access and use.
(b)      Each Party shall use commercially reasonable efforts to ensure that only those of its personnel who are specifically authorized to have access to the Systems of the other Party gain such access, and each Party shall use commercially reasonable efforts to prevent unauthorized access, use, destruction, alteration or loss of data, information or software contained in the Systems, including notifying its respective personnel of the restrictions set forth in this Section 6.2 and the Security Regulations.
(c)      If, at any time, the Availed Party determines that any of its personnel has sought to circumvent, or has circumvented, the Security Regulations, has accessed the Systems, or has engaged in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software of the other Party, the Availed Party shall promptly terminate any such Person’s access to the Systems and promptly notify the other Party. In addition, such other Party shall have the right to deny personnel of the Availed Party access to its Systems upon advance written notice to the Availed Party in the event that the other Party reasonably believes that such personnel have engaged in any of the activities described in this Section 6.2(c) or otherwise pose a security concern. The Availed Party shall use commercially reasonable efforts to cooperate with the other Party in investigating any apparent unauthorized access to such other Party’s Systems.
ARTICLE VII
REPRESENTATIONS AND WARRANTIES
7.1     Representations and Warranties . Each Party hereby represents and warrants to the other as of the date of this Agreement that:
    (a)    it is duly organized and validly existing under the laws of its jurisdiction of organization;
(b)    it has the power to own its assets and carry on its business as it is currently being conducted;
(c)    the obligations expressed to be assumed by it in this Agreement are legal, valid, binding and enforceable obligations upon it, subject to applicable bankruptcy, reorganization, insolvency or similar laws affecting creditors’ rights generally;

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(d)    the entry into, and performance by it, of the transactions contemplated by this Agreement do not and will not conflict with (i) any Applicable Law; (ii) its constitutional documents; or (iii) any material provision of any material agreement or instrument binding upon it; and
(e)    it has the power to enter into, perform and deliver, and has taken all necessary action to authorize its entry into, performance and delivery of this Agreement and the transactions contemplated by this Agreement.
ARTICLE VIII
INDEMNIFICATION AND LIABILITY

8.1      Indemnification by HSM . HSM shall be liable for and shall indemnify, defend and hold harmless each of the MPC Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of HSM’s actions or performance of its obligations hereunder to conform to Applicable Law, (b) claims for bodily injury or death or physical loss of or damage to property arising from HSM’s actions or omissions and (c) any negligence, gross negligence, default or willful misconduct of HSM in connection with the performance of, or failure to perform, this Agreement by HSM, except to the extent the circumstances described in the foregoing subparagraphs (a), (b) and (c) are a result of acts or omissions of MPC or its Affiliates.
8.2      Indemnification by MPC . MPC shall be liable for and shall indemnify, defend and hold harmless each of the HSM Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of MPC’s or its Affiliates’ actions or performance of its obligations hereunder to conform to Applicable Law, (b) claims for bodily injury or death or physical loss of or damage to property arising from the actions or omissions of MPC or its Affiliates and (c) any negligence, gross negligence, default or willful misconduct of MPC or any of its Affiliates in connection with the performance of, or failure to perform, this Agreement by MPC or any Affiliate of MPC, except to the extent the circumstances described in the foregoing subparagraphs (a), (b) and (c) are a result of acts or omissions of HSM.
8.3      Exception to Indemnification . Notwithstanding anything in this Agreement to the contrary, MPC is not responsible for indemnification obligations pursuant to Section 8.2 for any cause of action arising from the negligent actions, inactions, admissions, or omissions of any personnel provided or caused to be provided to HSM pursuant to the Amended and Restated Employee Services Agreement, provided the Amended and Restated Employee Services Agreement is still in effect at the time the cause of action arose. MPC is responsible for indemnification obligations pursuant to Section 8.2 for any cause of action arising from the grossly negligent or willful actions, inactions, admissions, or omissions of any personnel provided or caused to be provided to HSM pursuant to the Amended and Restated Employee Services Agreement, provided the Amended and Restated Employee Services Agreement is still in effect at the time the cause of action arose.

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8.4      Limitations and Liability .
(a)      Each Party has a duty to mitigate any loss sustained under this Agreement.
(b)     In recognition of the relative risks and benefits of this Agreement to both MPC and HSM, the risks have been allocated such that MPC agrees, to the fullest extent permitted by Applicable Law, to limit the liability of HSM and all HSM Indemnified Parties, for any and all claims, losses, costs, damages of any nature whatsoever whether arising from breach of contract, negligence, or other common law or statutory theory of recovery, or claims and expenses from any cause or causes, including attorney’s fees and costs and expert witness fees and costs, so that the total aggregate liability of HSM and all HSM Indemnified Parties shall not exceed the greater of ten million United States Dollars ($10,000,000.00) or the aggregate amount of Management Fees actually paid to HSM hereunder. It is intended that this limitation apply to any and all Claims and Liabilities however alleged or arising, unless otherwise prohibited by Applicable Law, including negligence, breach of contract, or any other claim whether in tort, contract or equity.
(c)    IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS, LOSS OF DATA, LOSS OF GOODWILL AND LOSS OF CAPITAL, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE (EXCEPT TO THE EXTENT THAT SUCH DAMAGES ARE PAID TO A THIRD PARTY AS A RESULT OF A THIRD PARTY CLAIM) ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT EITHER PARTY TO THIS AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.
8.5      Indemnification Procedures .
(a)      Within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article VIII , the Indemnified Party will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim to the extent then known by the Indemnified Party.
(b)      The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article VIII , including the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any matter or any issues relating thereto; provided , however , that no settlement involving the payment of money shall be entered into without the prior written consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such claim; and provided further , that no settlement containing any form of injunctive or similar relief shall be entered into

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without the prior written consent of the Indemnified Party, which consent shall not be unreasonably delayed, conditioned or withheld.
(c)      The Indemnified Party agrees to cooperate in good faith and in a commercially reasonable manner with the Indemnifying Party with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification under this Article VIII , including the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense and counterclaims, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party reasonably considers relevant to such defense and counterclaims, the making available to the Indemnifying Party of any employees of the Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties and facilities of the Indemnified Party; provided , however , that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 8.5 . The obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence shall not be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article VIII ; provided , however , that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims.
(d)      In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from Third Parties.
(e)      Notwithstanding anything to the contrary hereunder, no cause of action, dispute or claim for indemnification may be asserted against any Party or submitted to arbitration or legal proceedings which accrued more than two (2) years after the later of (i) the occurrence of the act or event giving rise to the underlying cause of action, dispute or claim and (ii) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Indemnified Party.
ARTICLE IX
TERMINATION
9.1      Events of Default . The occurrence or continuance of any of the following events will constitute a default of this Agreement by a Party (each an “ Event of Default ”):

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(a)      failure to pay any undisputed amount due and payable to the other Party under this Agreement within ten (10) business days after such amount becomes due and payable and such failure is not remedied within a period of thirty (30) days of written notice of such failure from the other Party;
(b)      a Party becomes Bankrupt;
(c)      a Party is in material breach of any of its other material obligations under this Agreement and fails to cure such breach to the reasonable satisfaction of the non-defaulting Party within forty-five (45) days of written notice of such breach from the non-defaulting Party; and
(d)      any representation, warranty or statement made by a Party herein proves to be untrue in any material respect on the date on which it was made.
9.2      Termination .
(a)      Upon the occurrence of an Event of Default by either Party, the non-defaulting Party shall have the right to terminate this Agreement effective immediately upon delivery of written notice to the defaulting Party.
(b)      Following termination of this Agreement, (a) each Party will cooperate with the other Party as reasonably necessary to avoid disruption of the ordinary course of the businesses of such other Party and its Affiliates and (b) upon written request by MPC, HSM shall deliver to MPC, at the expense of MPC, the records maintained by HSM on behalf of MPC; provided , however , that HSM may make and retain in its files one copy of such records.
(c)      Termination of this Agreement shall not affect HSM’s right to payment for Management Services provided prior to the date of such termination.
9.3      Effect of Termination . Upon termination of this Agreement, all rights and obligations of the Parties hereunder shall cease, provided , however , that such termination shall not excuse any Party’s breach of this Agreement prior to termination.
ARTICLE X
MISCELLANEOUS
10.1      Entire Agreement . This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the Parties with respect to such subject matter.
10.2      Choice of Law; Dispute Resolution .
(a)      Governing Law . This Agreement shall be subject to and governed by the laws of the State of New York, without regard to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any other jurisdiction.

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(b)      Mediation .    If the Parties cannot resolve any Dispute or claim arising under this Agreement, then no earlier than ten (10) days nor more than sixty (60) days following written notice to the other Party, any Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “ Mediation Notice ”) to the other Party. In connection with any mediation pursuant to this Section 10.2(b) , the mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties. All costs and expenses of the mediator appointed pursuant to this Section   10.2(b) shall be shared equally by the Parties. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties, shall govern any mediation pursuant to this Section 10.2(b) . In the mediation, each Party shall be represented by one or more senior representatives who shall have authority to resolve any Disputes. If a Dispute has not been resolved within thirty (30) days after the receipt of the Mediation Notice by a Party, then any Party may refer the resolution of the Dispute to any federal or state court located in Ohio in accordance with Section 10.2(c) .
(c)      Litigation .    Each Party agrees that it shall bring any action or proceeding in respect of any Dispute or claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Ohio and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 10.9 . The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Ohio for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.
10.3      Amendment . This Agreement may only be amended, modified or supplemented by a written instrument signed by the Parties.
10.4      Waiver; Cumulative Remedies . Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. No single or partial exercise of any right or remedy under this Agreement precludes any simultaneous or subsequent exercise of any other right, power or privilege. The rights and remedies set forth in this Agreement are not exclusive of, but are cumulative to, any rights or remedies now or subsequently existing at law, in equity or by statute.
10.5      Severability . The provisions of this Agreement are separable and severable. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under Applicable Law. If any one or more of the provisions contained herein is, for any reason, held to be invalid, illegal or unenforceable in whole or in part by any court of law or

16




equity, then such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable and the remaining provisions hereof shall continue in full force and effect to the greatest extent practicable.
10.6      Survival . Notwithstanding any suspension or termination of this Agreement, the Parties shall continue to be bound by the provisions of this Agreement that reasonably require some action or forbearance after such suspension or termination, including those relating to confidentiality obligations, audit rights, warranties, compliance with Applicable Laws, governing law, dispute resolution, indemnities, and limitation of liability.
10.7      Assignment . This Agreement shall be binding upon and inure to the benefit of the Parties and their permitted successors and assigns; provided , however , that neither Party may assign its rights or obligations under this Agreement without prior written consent from the other Party, which consent shall not be unreasonably withheld, conditioned or delayed; provided, further however , that either Party may assign its rights and obligations under this Agreement to a successor in interest resulting from any merger, reorganization, consolidation or as part of a sale of all or substantially all of its assets. Subject to the foregoing, this Agreement shall bind and inure to the benefit of each Party and its successors and permitted assigns.
10.8      Third Party Beneficiaries . Except to the extent otherwise provided in Article VIII with respect to the rights of the Indemnified Party, the provisions of this Agreement are solely for the benefit of the Parties and their respective successors and permitted assigns and shall not confer upon any Third Party any remedy, claim, liability, reimbursement or other right. Notwithstanding Article VIII , the Parties may rescind or vary this Agreement, in whole or in part, without the consent of any Third Party, and no Third Party shall be entitled to assign any benefit or right conferred upon it under this Agreement.
10.9      Notices . All notices, consents, directions, approvals, objections, refusals, instructions, requests, demands, and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given or delivered (a) when delivered personally; (b) if transmitted by facsimile, when confirmation of transmission is received; (c) if by email, when receipt of such email is acknowledged by return email; (d) if sent by registered or certified mail, postage prepaid, return receipt requested, on the third (3rd) business day after mailing; or (e) if sent by private courier, when received; and shall be addressed to the appropriate Party at its address specific below, or at such other address as such Party may specify by notice to the other Party:
if to

Hardin Street Marine LLC
539 South Main Street
Findlay, OH 45840
Attention: President
Email address: tsandifer@marathonpetroleum.com

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if to

Marathon Petroleum Company LP
539 South Main St.
Findlay, OH 45840
Attention: General Counsel
Email address: jmwilder@marathonpetroleum.com

or, to such other address as such Party may indicate by a notice delivered in accordance with this Section 10.9 .

10.10      Counterparts . This Agreement may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. Executed facsimiles of such counterparts shall be deemed enforceable to the same extent as if they were executed original documents.


                    


Signature Page Follows




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IN TESTIMONY WHEREOF, the Parties have caused this Agreement to be signed by their authorized Representatives as of the date first above written.

 
Hardin Street Marine LLC
 
 
 
 
By:
/s/ M. Todd Sandifer
 
 
M. Todd Sandifer, President
 
 
 
 
Date:
December 17, 2015
 
 
 
 
 
 
 
 
 
 
Marathon Petroleum Company LP
 
By:
MPC Investment LLC, its general partner
 
 
 
 
By:
/s/ John S. Swearingen
 
 
John S. Swearingen, Vice President
 
 
 
 
Date:
December 18, 2015
 
 
 
 
 
 



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Exhibit A
Management Services

1.    Logistics and Commercial Services

Central Dispatch : Catlettsburg, KY

In response to inputs from MPC, HSM’s dispatchers shall:
coordinate the building of tows and movement of equipment in the Catlettsburg harbor;
schedule dock activity at MPC’s Catlettsburg refinery and Kenova dock;
record daily traffic called in by captains, terminals and Third Party carriers;

Scheduling : Findlay, OH

In response to nominations of Products by MPC’s Supply, Distribution and Planning organization, HSM’s schedulers shall:

Plan and coordinate HSM and Third Party equipment movements;
Plan and schedule moves according to MPC nomination requests;
Work with MPC to schedule receipts and deliveries of Products;
Acquire equipment as needed to fill supply/demand gaps with Third Party chartered equipment and communicates boat/barge orders to MPC’s Operations and Accounting departments;
Coordinate fuel purchases, negotiate fuel prices, manage supply agreements;
Optimize equipment utilization and execute outcharter and other commercial opportunities; and


Commercial and Analytical Services : Findlay, OH

In response to requests by MPC, HSM’s analysts shall:
Generate and forward accounts receivable invoices to MPC.
provide various MPC with detailed data analyses, including the following:
Market analysis
Strategic analysis
Constraint analysis
Affreightment calculations
Equipment movement analysis
Budget data
Historical reports
Contract negotiation and relationship management
Contract performance analysis

A-1






2.     Vetting Services – Garyville, LA; Texas City, TX; Catlettsburg, KY

HSM shall confirm that all Third Party marine vessels and equipment utilized by MPC have been vetted in accordance with MPC’s Marine Vetting Policy.

3.     Loss Control Services – Garyville, LA; Texas City, TX

HSM shall:
Voyage analysis - monitor and manage product loss by comparing volumes loaded on a vessel per the bill of lading and volumes discharged therefrom;
Monitor measurement systems at refineries and terminals;
File and Defend cargo claims;
Provide support on demurrage issues;
Provide support to MPC Accounting;
Nominate and monitor third party inspectors;
Participate in third party inspector rate negotiations;
Review contract language and recommend changes
Monitor pipeline movements at Galveston Bay refinery; and
Manage and monitor the Navarik software system to manage inspection nominations and loss control.

4.     Brokerage Services – Findlay, OH
 
HSM shall provide brokerage services for all Third Party chartered equipment utilized by MPC.


A-2





Exhibit B
Management Fee Rates


1.    Logistics and Commercial Services

January 1, 2015 – June 30, 2015: $2,175,000 (payable in equal monthly installments)
July 1, 2015 – December 31, 2015: $2,650,000 (payable in equal monthly installments)
January 1, 2016 – December 31, 2016, and every calendar year thereafter: $5,300,000 (payable in equal monthly installments)

2.    Vetting Services

Annual fee of $3,000,000 (payable in equal monthly installments)

3.    Loss Control Services

Annual fee of $5,100,000 (payable in equal monthly installments)

4.    Brokerage Services

Brown water: 2.5% of the applicable charter rate
Blue water: ≥100Mbbls: 1.25% of the applicable charter rate
Blue water: <100Mbbls: 2.5% of the applicable charter rate
Great lakes: 2.5% of the applicable charter rate
Petroleum coke: 2.5% of the applicable charter rate


In each case the “applicable charter rate” is the base rate charged and invoiced by the Third Party charter company to MPC for the vessel covered by such charter.


B-1


        

SECOND AMENDED AND RESTATED EMPLOYEE SERVICES AGREEMENT

THIS SECOND AMENDED AND RESTATED EMPLOYEE SERVICES AGREEMENT (as amended, restated and otherwise modified, this “ Agreement ”) is entered into as of the Effective Date by and between Marathon Petroleum Logistics Services LLC, a Delaware limited liability company (“ MPLS ”) and Hardin Street Marine LLC, a Delaware limited liability company (“ HSM ”).

WHEREAS, MPLS is engaged in the business of providing employee related services for the operation of midstream assets;

WHEREAS, HSM is engaged in the business of providing midstream marine transportation of Products, as well as certain services related to such transportation;

WHEREAS, the Parties deem it to be appropriate and in the best interests of each of them that MPLS provide certain employee related services to HSM on the terms and conditions set forth herein;

WHEREAS, it is the intent of the Parties that such services be provided based on an arm’s-length standard, and the Fees set forth on Exhibit B are intended to reflect such standard;

WHEREAS, MPLS and HSM previously entered into that certain Employee Services Agreement on the 1 st day of January, 2015 (“ Original ESA ”);

WHEREAS, on December 18, 2015, the Original ESA was amended and restated by MPLS and HSM (the “First Amended ESA” ), which superseded the Original ESA; and

WHEREAS, pursuant to Section 13.3 of the First Amended ESA, MPLS and HSM now desire to amend and restate the terms and conditions contained in the First Amended ESA.

NOW, THEREFORE, in consideration of the forgoing and the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby enter into this Agreement, and amend and restate the First Amended ESA in its entirety as follows:

ARTICLE I
DEFINITIONS

1.1 Definitions . As used in this Agreement:

(a) Additional Services ” means the Additional Services as defined in Section 3.2 . Any Additional Services provided pursuant to this Agreement shall be deemed to be “Services” under this Agreement.

(b) Affiliate ” means, as to any specified Person, any other Person that, directly or indirectly through one (1) or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified Person. For purposes of the foregoing, “control”, “controlled by”, and under

1



“common control with” with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, member or partnership interests, by contract or otherwise. For the purposes of this Agreement, HSM shall not be considered an Affiliate of MPLS, nor shall MPLS or any of its Affiliates other than HSM be considered an Affiliate of HSM.

(c) Agreement ” means this Amended and Restated Employee Services Agreement and all Exhibits referenced in and attached to this Agreement and all amendments, modifications and changes thereto.

(d) Applicable Law ” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having jurisdiction over the matter or matters in question, whether now or hereafter in effect.

(e) Authorized Representative ” means, for each Party, any of the individuals holding the titles listed on Exhibit A under the name of such Party.

(f) Availed Party ” has the meaning set forth in Section 8.2(a) .

(g) Bankrupt ” means, with respect to any Person, that such Person (i) becomes insolvent or unable to pay its debts as they become due; (ii) commences any case, proceeding or other action under any existing or future law seeking to enter into any composition or other arrangement for the benefit of its creditors generally or any class of creditors; (iii) applies for, consents to, or acquiesces in, the appointment of a trustee, receiver, sequestrator or other custodian for such Person or any of its property, or makes a general assignment for the benefit of creditors; (iv) in the absence of such application, consents or acquiesces in, permits or suffers to exist the appointment of a trustee, receiver, sequestrator, intervenor, mediator or other custodian for such Person or for a substantial part of its property, and such trustee, receiver, sequestrator, intervenor, mediator or other custodian is not discharged within sixty (60) days; (v) permits or suffers to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, liquidation, winding up or liquidation proceeding, in respect of such Person and, if any such case or proceeding is not commenced by such Person, such case or proceeding is consented to or acquiesced in by such Person or results in the entry of an order for relief or remains undismissed or unstayed for sixty (60) days; or (vi) takes any corporate action authorizing, or in furtherance of, any of the foregoing.

(h) Claims and Liabilities ” means all suits, sanctions, actions, liabilities, legal proceedings, government fines and penalties, pollution clean-up, damages to natural resources, claims, demands, losses, damages, costs, expenses, or causes of action of every kind and character, including all claims that may exist, arise, or be threatened currently or in the future at any time following the Effective Date and whether or not of a type contemplated by any Party at any time following the Effective Date.

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(i) Confidential Information ” means any proprietary or confidential information that is competitively sensitive material or otherwise of value to a Party or its Affiliates and not generally known to the public, including trade secrets, scientific or technical information, design, invention, process, procedure, formula, improvements, product planning information, marketing strategies, financial information, information regarding operations, consumer and/or customer relationships, consumer and/or customer identities and profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of a Party or its Affiliates and the consumers, customers, clients and suppliers of any of the foregoing. Confidential Information includes such information as may be contained in or embodied by documents, substances, engineering and laboratory notebooks, reports, data, specifications, computer source code and object code, flow charts, databases, drawings, pilot plants or demonstration or operating facilities, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation (including data in computer or other digital format) of the foregoing; provided , however , that Confidential Information does not include information that a receiving Party can show (A) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement, (B) has been furnished or made known to the receiving Party by a Third Party under circumstances that are not known to the receiving Party to involve a breach of the Third Party’s obligations to the disclosing Party or (C) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.

(j) Default Rate ” means the rate per annum equal to LIBOR plus one percent (1%). Any interest payable hereunder shall accrue from day to day and be calculated on the basis of a three hundred sixty-five (365) day year.

(k) Dispute ” means any dispute or difference of whatsoever nature arising under, out of, in connection with or in relation (in any manner whatsoever) to this Agreement or the subject matter of this Agreement.

(l) Effective Date ” means January 1, 2015.

(m)
Event of Default ” has the meaning set forth in Section 11.1 .

(n)
Expenses ” has the meaning set forth in Section 6.1 .

(o) Extension Period ” has the meaning set forth in Section 2.1 .

(p) Fees ” for the provision of personnel to perform the Services shall be as set forth on Exhibit B .

(q) Force Majeure Event ” means any event or circumstance that is beyond the reasonable control of a Party and which the affected Party is not able to overcome through the exercise of commercially reasonable efforts that prevents or delays the affected Party from complying, either totally or in part, with any of its obligations under this Agreement. Provided that they satisfy the preceding sentence, Force Majeure Event shall include any fire, flood, storm, strike,

3



walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel, power, raw materials or components, equipment failure, any law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any Governmental Authority, riot, civil commotion, war, rebellion, act of terrorism, nuclear or other accident, explosion, casualty, pandemic, or act of God, or act, omission or delay in acting by any Governmental Authority or military authority or Third Party or any other cause, whether or not of a class or kind listed in this sentence.

(r) Force Majeure Notice ” has the meaning set forth in Section 3.5(a) .

(s) Governmental Authority ” means the government of any nation or any political subdivision thereof, whether at the national, state, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

(t) HSM ” has the meaning set forth in the preamble.

(u) HSM Indemnified Parties ” means HSM and each of its directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.

(v) Indemnified Party ” means a Party receiving indemnification from the other Party in accordance with the terms of this Agreement.

(w) Indemnifying Party ” means a Party providing indemnification to the other Party in accordance with the terms of this Agreement.

(x) Initial Term ” has the meaning set forth in Section 2.1 .

(y) LIBOR ” means, on a particular day, the rate per annum for three (3) month deposits in US Dollars which appears on the Reuters screen “LIBO Page” at or about 11 a.m. (London time) on the first day of the period for which interest is to be calculated, or, if such day is not a day on which banks are open for business in London, on the next following day on which banks are open for business in London. If Reuters information service fails to display such rate on any day when a rate is to be determined as aforesaid, but such rate is so displayed on Bridge Telerate or is available directly from the Intercontinental Exchange (ICE) Benchmark Administration Limited (or any other Person that takes over the administration of that rate), it shall be determined from that source accordingly.

(z) Mediation Notice ” has the meaning set forth in Section 13.2(b) .

(aa) MPLS has the meaning set forth in the preamble.

(bb)    “ MPLS Indemnified Parties ” means MPLS, each Affiliate of MPLS, and each of their respective directors, managers, officers, employees and agents, and each of the heirs,

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executors, successors and assigns of any of the foregoing.

(cc)    “ MSA ” means that certain Amended and Restated Management Services Agreement, of even date herewith, by and between HSM and Marathon Petroleum Company LP.

(dd)    “ Party means MPLS or HSM as applicable.

(ee)    “ Person ” means a natural person, corporation, partnership, limited liability company, joint stock company, trust, estate, joint venture, union, association or unincorporated organization, Governmental Authority or any other form of business or professional entity.

(ff)    “ Product ” means crude oil, feedstocks, light products, heavy oils, specialty chemicals and refined petroleum products.

(gg)    “ Security Regulations ” has the meaning set forth in Section 8.2(a) .
(hh)    “ Services ” means the Services described on Exhibit B .
(ii)    “ Systems ” has the meaning set forth in Section 8.2(a) .
(jj)    “ Term ” has the meaning set forth in Section 2.1 .
(kk)    “ Third Party ” means a Person that is not a Party or an Affiliate of a Party.
(ll)    “ TSA ” means that certain Amended and Restated Transportation Services Agreement, of even date herewith, by and between HSM and Marathon Petroleum Company LP.

1.2 Interpretation . In this Agreement, unless the context clearly indicates otherwise:

(a) words used in the singular include the plural and words used in the plural include the singular;

(b) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement;

(c) any reference to any gender includes the other gender;

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”;

(e) any reference to any Article, Section or Exhibit means such Article or Section of, or such Exhibit to, this Agreement, as the case may be, and references in any Article, Section or Exhibit to any clause means such clause of such Article, Section or Exhibit;

(f) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other

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provision hereof;

(g) any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time;

(h) any reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

(i) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including”;

(j) if there is any conflict between the provisions of the main body of this Agreement and the Exhibits, the provisions of the main body of this Agreement shall control unless explicitly stated otherwise in such Exhibit;

(k) the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;

(l) all references to dollar amounts shall be in respect of lawful currency of the United States;

(m) the language of this Agreement shall be deemed to be the language the Parties have chosen to express their mutual intent, and no rule of strict construction shall be applied against either Party; and

(n) the Schedules and Exhibits form part of this Agreement and shall have the same force and effect as if set out in the body of this Agreement and any reference to this Agreement shall include the Schedules and Exhibits.

ARTICLE II
TERM

2.1 Term . This Agreement is effective for a time period commencing on the Effective Date and shall continue for a period of six (6) years (the “ Initial Term ”) or the end of any Extension Period unless terminated earlier pursuant to the terms hereof. This Agreement will automatically renew for up to two (2) additional renewal terms of five (5) years each (each, an “ Extension Period ”), unless either Party provides the other Party with written notice of its intent to terminate this Agreement at least twelve (12) months prior to the end of the then-current Term. The Initial Term and Extension Periods, if any, shall be referred to collectively in this Agreement as the “ Term ”.

ARTICLE III
PERFORMANCE OF SERVICES

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3.1 General .

(a)    During the Term, MPLS shall provide, or cause to be provided, to HSM a sufficient number of suitably qualified and experienced personnel as is required to enable HSM to perform the Services in accordance with the terms and conditions of the TSA and the MSA; provided , however , that HSM shall have the right to approve or reject such personnel in HSM’s sole discretion.

(b)    At all times during the Term:

(i)    Unless specifically provided to the contrary on Exhibit B, all Services provided by MPLS pursuant to the Agreement shall be performed or provided, as applicable (A) with the use of reasonable care; (B) consistent with this Agreement and in substantially the same manner (including as to level, quality, and timeliness) as such Services have been provided relative to MPC’s assets prior to the Effective Date; and (C) in material compliance with Applicable Law.

(ii)     when selecting and providing personnel to HSM, MPLS shall use reasonable care in material compliance with Applicable Laws; and

(iii)    HSM shall direct, control and supervise all Services performed or provided by MPLS personnel under this Agreement.

(c)    Notwithstanding anything to the contrary in this Agreement, neither MPLS nor any of its Affiliates, shall be required to perform Services or take any actions relating thereto that conflict with or violate any Applicable Law, contract or certification.

(d)     In the event that MPLS is unable to provide a sufficient number of suitably qualified and experienced personnel, as determined in good faith by HSM, HSM may engage (or hire a Third Party to engage) personnel to provide the relevant Services.

3.2 Additional Services . If HSM reasonably determines that additional services (not listed on Exhibit B at the time of the determination) and/or additional personnel are required in order for HSM to conduct its business, including performance of its obligations under the TSA and/or the MSA, then HSM may provide written notice thereof to MPLS in accordance with Section 3.3 . If MPLS agrees, in its sole discretion, to provide such additional service or personnel during the Term, then the Parties shall negotiate in good faith an amendment to Exhibit B to include the additional service (each such service an “ Additional Service ”) or to provide additional personnel, the terms and conditions for the provision of each Additional Service and/or each additional personnel, and the Fees payable to MPLS for each Additional Service and/or additional personnel, such Fees to be determined with the intent that they reflect an arm’s-length standard.

3.3 Modification; Third Party Providers .

(a)    Any communications regarding (i) the execution of the Services; (ii) the provision of personnel by MPLS or the approval or disapproval of personnel by HSM; (iii) any modification or alteration to the provision of the Services; or (iv) the provision of Additional Services or additional

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personnel must be made and agreed to, in writing, by an Authorized Representative of a Party (it being understood that the receiving Party shall not be obligated to agree to any modification or alteration requested thereby).

(b) Each Party acknowledges and agrees that the personnel performing the Services under this Agreement have been, and will continue to be, provided to HSM by Third Parties designated by MPLS. To the extent so provided, MPLS shall use commercially reasonable efforts to (i) cause such Third Parties to provide personnel to perform such Services under this Agreement and (ii) enable HSM to avail itself of such Services; provided , however , that if any such Third Party is unable or unwilling to provide personnel to perform any such Services, the Parties agree to use their commercially reasonable efforts to determine the manner in which such Services can best be provided. It is acknowledged and agreed that any costs or Expenses to be incurred in connection with obtaining personnel to perform Services from a Third Party shall be paid by HSM; provided , however , that MPLS shall use commercially reasonable efforts to communicate in advance to HSM the expected costs or Expenses to be incurred.

3.4 Disclaimer of Warranties . EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, MPLS MAKES NO, AND EXPRESSLY DISCLAIMS ANY, WARRANTIES WHATSOEVER WITH RESPECT TO THE SERVICES, INCLUDING ANY (A) WARRANTY OF MERCHANTABILITY; OR (B) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; OR (C) WARRANTY OF TITLE; OR (D) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.

3.5 Force Majeure .

(a)    As soon as possible following the occurrence of a Force Majeure Event, the Party affected by the Force Majeure Event shall promptly notify the other Party in writing of the occurrence of such Force Majeure Event (a “ Force Majeure Notice ”). Concurrent with that notice or as soon as possible thereafter, the affected Party shall give the other Party a full description of the Force Majeure Event and the approximate length of time that the affected Party reasonably believes such Force Majeure Event will continue. Each Party shall use commercially reasonable efforts to mitigate or overcome the effects of such Force Majeure Event as soon as possible; provided , however , that neither Party shall be required to settle any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interest. It is understood that the settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party.

(b)    If personnel provided by MPLS are unable to perform any Service due to a Force Majeure Event, HSM shall have the right, but not the obligation, to engage subcontractors to perform such obligations for the duration of the Force Majeure Event; provided , however , that any Fees paid or payable by HSM to MPLS under this Agreement with respect to the provision of personnel to perform the Services affected by such Force Majeure Event shall be reduced (or refunded, if applicable) on a dollar-for-dollar basis for all amounts paid by or on behalf of HSM to

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such subcontractors; provided further , however , that MPLS shall not be responsible for the amounts of fees paid by or on behalf of HSM to any such subcontractors to perform such services to the extent such fees exceed the aggregate Fees paid or owed to MPLS for the applicable period of the Force Majeure Event.

ARTICLE IV
COOPERATION

4 . 1 Cooperation . Each Party shall use good faith efforts to cooperate with the other Party in all matters relating to the provision and receipt of personnel to perform the Services, including providing in a timely manner any information, documentation, approvals and acceptances reasonably requested by a Party, other than information and documentation protected by attorney-client privilege.

4.2 Consents .

(a)    Each Party shall provide reasonable cooperation to obtain all Third Party consents for any Third Party software or other Third Party intellectual property related to the provision of personnel to provide the Services sufficient to enable MPLS to provide personnel to perform the Services in accordance with this Agreement; provided , however , that no Party shall be obligated under this Agreement to pay any consideration (other than de minimis transfer fees), grant any concession or incur any liability to any Third Party to obtain any such Third Party’s consent.

(b)    If any Third Party consent or approval required for the provision of personnel to provide the Services hereunder is not obtained, then (unless and until such Third Party consent or approval is obtained) the Parties shall, to the extent practicable, cooperate with each other in achieving a reasonable alternative arrangement for HSM to obtain such personnel to provide the Services.
ARTICLE V
FEES

5.1 Fees . Subject to Section 3.5(b) , HSM shall pay MPLS the Fees for the provision of personnel to provide the Services as set forth on Exhibit B and in accordance with Article VI . If personnel provided by MPLS hereunder are unable to perform any Service due to a Force Majeure Event, then MPLS shall reduce the Fees to account for any reduction in the performance of Services by such personnel.

5.2 Taxes . To the extent required by Applicable Law, MPLS shall add to any Fees due under this Agreement amounts equal to any sales, use or similar taxes, however designated or levied, based upon the provision of personnel to perform the Services performed hereunder. MPLS is solely responsible for the collection and remittance of any such taxes to the appropriate tax authorities. The Parties shall cooperate with each other to minimize any such taxes to the extent reasonably practicable. If additional taxes are determined to be due with respect to the provision of personnel provided hereunder to perform the Services as a result of (a) an audit by any applicable tax authority, or (b) a new or change in Applicable Law, then HSM shall reimburse MPLS for the additional taxes due from MPLS, including interest and penalty. HSM has the right to contest with

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the tax authority, at HSM’s sole expense, the amount of any taxes or the result of any audit. MPLS is responsible for any penalty or interest resulting from its failure to remit any invoiced taxes. Notwithstanding anything in this Agreement to the contrary, this Section 5.2 will, to the fullest extent permitted by Applicable Law, survive the termination of this Agreement and remain in effect until the expiration of the relevant statutes of limitations.

5.3 Adjustments . In the event of the termination of this Agreement prior to the scheduled expiration of the Term, then (a) with respect to any Services for which the Fee for such Services is charged as a flat monthly rate, if termination occurs other than the end of the month, the Fee for that month shall be prorated to reflect a partial month, and (b) with respect to any other Services, all amounts due pursuant to the terms hereof with respect to the Services shall be appropriately prorated and reduced to reflect such shortened period during which such Services are actually provided, and MPLS shall refund to HSM the appropriate prorated amount for any such Services that have been paid for in advance. Notwithstanding the immediately preceding sentence, to the extent any amounts due or advances made hereunder related to costs or Expenses that have been or will be incurred and that cannot be recovered by MPLS, such amounts due or advances made shall not be prorated or reduced and MPLS shall not be required to refund any prorated amount for such costs or Expenses; and HSM shall reimburse MPLS for any Third Party cancellation or similar charges incurred as a result of such early termination.

ARTICLE VI
INVOICE AND PAYMENT; AUDIT

6.1 Invoices and Payment . Within twenty (20) days following the end of each month during the Term, MPLS will submit to HSM for payment a written invoice for the amounts due under this Agreement for such month. The invoice will set forth the Fees, in the aggregate and itemized, based on the descriptions set forth on Exhibit B . Each invoice will contain documentation and other details in support of the invoiced amounts as HSM may reasonably require to validate such invoiced amounts. Except as otherwise provided in this Agreement, HSM shall reimburse MPLS monthly for all out-of-pocket costs and expenses reasonably incurred and actually paid by MPLS to Third Parties on behalf of HSM in connection with providing personnel to perform the Services (“ Expenses ”).

6.2 Timing of Payment; No Offsets . HSM shall pay all amounts due pursuant to this Agreement within ten (10) days after the receipt of the relevant invoice. HSM shall not offset any amounts owing to it by MPLS or any of its Affiliates against amounts payable hereunder.

6 . 3 Non - Payment . If HSM fails to make payment of any sum as and when due under this Agreement, then HSM shall pay interest thereon to MPLS at the Default Rate (as in effect on the day when such sum was originally due) on and from the day when payment was due until the date of payment.

6.4 Payment Disputes . HSM may contest any amount of any invoice at any time before or after payment is made, provided such objection is made in writing to MPLS within ninety (90)
days following the end of the calendar year in which the relevant Services were performed. HSM
shall timely pay any disputed items in full while resolution of the dispute is pending; provided ,

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however , that MPLS shall pay interest at the Default Rate on any amounts it is required to
return to HSM upon resolution of the dispute. Payment of the uncontested amount shall
not constitute approval thereof. Any dispute under this Section 6.4 shall be resolved in accordance with the provisions of Section 13.2 .

6.5 Audit Rights .

(a)    HSM may, at its own cost and expense, audit (or cause an independent Third Party auditor to audit) the books and records of MPLS to the extent necessary to determine MPLS’s compliance with this Agreement with respect to Fees and Expenses charged or the performance of MPLS’s obligations under this Agreement. HSM shall have the right to conduct such audit no more than once with respect to each calendar year during the Term; provided , however , that any audit shall not be commenced later than twelve (12) months after the end of the calendar year to be audited.

(b)    Any audit shall be conducted during regular business hours and in a manner that does not unreasonably interfere with the operations of MPLS. HSM shall provide reasonable advance notice to MPLS prior to the commencement of the audit and shall specify the date on which the audit will commence.
ARTICLE VII
CONTROL OF SERVICES; OWNERSHIP OF ASSETS

7.1 Control of Services . Notwithstanding anything to the contrary in this Agreement, HSM shall at all times have exclusive authority to manage and control the business and operations of HSM. In connection with managing and controlling the business and operations of HSM, the provision of the Services shall be under the ultimate direction, control and supervision of HSM.

7.2 Employee Status . During the Term of this Agreement:

(a)      no employee of MPLS shall be deemed an employee of HSM by reason of such employee’s involvement in providing Services provided hereunder. MPLS shall bear the sole responsibility for payment of each such employee’s wages, benefits, all withholding obligations to federal, state and local taxation and insurance authorities and all other costs and expenses associated with such employees, including those costs and expenses related to workers’ compensation claims (including claims arising under the Longshore and Harbor Workers’ Compensation Act) and claims arising under the Jones Act and general maritime law (including claims for maintenance and cure);

(b)      subject to the rights of HSM to direct and control the performance and provision of the Services as set forth in this Agreement, MPLS shall serve as the employer directly controlling the personnel that it provides to perform such Services and shall retain the exclusive right to review employees’ performance, determine employees’ compensation and benefits, discipline employees and determine whether or not to continue employees’ employment; and

(c)      notwithstanding anything in this Agreement to the contrary, no provision of this Agreement (i) shall be construed as granting employees any employment rights for a specific

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duration or constraining MPLS’s right to terminate the employment relationship with any of its employees or (ii) affecting the ability of any MPLS employee to be considered for transfers or promotions to positions listed on any internal job posting system.

7.3 Assets . All procedures, methods, Systems, strategies, tools, equipment, facilities and other resources used by a Party or any of its Affiliates in connection with the performance of its obligations hereunder shall remain the property of such Party or its Affiliates and, except as otherwise provided herein, shall at all times be under the sole direction and control of such Person. No license under any patents, know-how, trade secrets, copyrights or other rights is granted by this Agreement or any disclosure in connection with this Agreement by any Party.

ARTICLE VIII
CONFIDENTIALITY; SECURITY

8.1 Confidentiality .

(a)    During the Term and for a period of three (3) years after the termination of this Agreement, each Party shall keep confidential the other Party’s Confidential Information, whether acquired before or after the Effective Date, and neither Party shall release or disclose the other Party’s Confidential Information to any Third Party other than a receiving Party’s representatives with a need to know the Confidential Information for the purposes of such Party’s performance pursuant to this Agreement.

(b)    Each Party shall be responsible for any breach of this Section 8.1 by any of its representatives.

(c)    The provisions of this Section 8.1 do not apply to any Confidential Information to the extent that the receiving Party is required to disclose such information under any Applicable Laws or pursuant to any order of any court, mediator or arbitrator, or in connection with any legal proceeding, mediation or arbitration to enforce its rights under this Agreement, or in connection with the requirements of a regulatory body or stock exchange, or in connection with a financing, bond offering, or sale of stock.

(d)    If a Party receives a subpoena or other demand for disclosure of Confidential Information received from any other Party or must disclose to a Governmental Authority any Confidential Information received from such other Party in order to obtain or maintain any required governmental approval, the receiving Party shall, to the extent legally permissible, provide notice to the providing Party before disclosing such Confidential Information. Upon receipt of such notice, the providing Party shall promptly either seek an appropriate protective order, waive the receiving Party’s confidentiality obligations hereunder to the extent necessary to permit the receiving Party to respond to the demand, or otherwise fully satisfy the subpoena or demand or the requirements of the applicable Governmental Authority. If the receiving Party is nonetheless legally compelled to disclose such Confidential Information, or if the providing Party does not promptly respond as contemplated by this Section, the receiving Party may disclose that portion of Confidential Information required to be disclosed by the subpoena or other demand.

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(e)    Each Party acknowledges that the disclosing Party would not have an adequate remedy at law for the breach by the receiving Party of any one or more of the covenants contained in this Section 8.1 and agrees that, in the event of such breach, the disclosing Party shall, in addition to the other remedies that may be available to it, be entitled to injunctive relief for any violation of, and to enforce the terms of, this Section 8.1 .
8.2 System Security .
(a)      If any Party is given access to the other Party’s computer systems or software (collectively, “ Systems ”) in connection with the Services, the Party given access (the “ Availed Party ”) shall comply with all of the other Party’s System security policies, procedures and requirements that have been provided to the Availed Party in advance and in writing (collectively, “ Security Regulations ”), and shall not tamper with, compromise or circumvent any security or audit measures employed by such other Party. The Availed Party shall access and use only those Systems of the other Party for which it has been granted the right to access and use.
(b)     Each Party shall use commercially reasonable efforts to ensure that only those of its personnel who are specifically authorized to have access to the Systems of the other Party gain such access, and each Party shall use commercially reasonable efforts to prevent unauthorized access, use, destruction, alteration or loss of data, information or software contained in the Systems, including notifying its respective personnel of the restrictions set forth in this Section 8.2 and of the Security Regulations.
(b)      If, at any time, the Availed Party determines that any of its personnel has sought to circumvent, or has circumvented, the Security Regulations, has accessed the Systems, or has engaged in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software of the other Party, the Availed Party shall promptly terminate any such Person’s access to the Systems and promptly notify the other Party. In addition, such other Party shall have the right to deny personnel of the Availed Party access to its Systems upon advance written notice to the Availed Party in the event that the other Party reasonably believes that such personnel have engaged in any of the activities described in this Section 8.2(c) or otherwise pose a security concern. The Availed Party shall use commercially reasonable efforts to cooperate with the other Party in investigating any apparent unauthorized access to such other Party’s Systems.
ARTICLE IX
NO PARTNERSHIP OR AGENCY RELATIONSHIP

9.1 No Partnership or Agency Relationship . This Agreement shall not be interpreted or construed to create an association, partnership, agency, franchise, joint venture, employment or fiduciary relationship between HSM and MPLS or any of their Affiliates. Except as explicitly set forth in this Agreement, neither Party shall have any right, power or authority to enter into any agreement or undertaking for, act on behalf of, act or be an agent or representative of, or otherwise bind, the other Party.

ARTICLE X
REPRESENTATIONS AND WARRANTIES

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10.1 Representations and Warranties . Each Party hereby represents and warrants to the other as of the date of this Agreement that:
    (a)    it is duly organized and validly existing under the laws of its jurisdiction of organization;
(b)    it has the power to own its assets and carry on its business as it is currently being conducted;
(c)    the obligations expressed to be assumed by it in this Agreement are legal, valid, binding and enforceable obligations upon it, subject to applicable bankruptcy, reorganization, insolvency or similar laws affecting creditors’ rights generally;
(d)    the entry into, and performance by it, of the transactions contemplated by this Agreement do not and will not conflict with (i) any Applicable Law; (ii) its constitutional documents; or (iii) any material provision of any material agreement or instrument binding upon it; and
(e)    it has the power to enter into, perform and deliver, and has taken all necessary action to authorize its entry into, performance and delivery of this Agreement and the transactions contemplated by this Agreement.

ARTICLE XI
TERMINATION

11.1 Events of Default . The occurrence or continuance of any of the following events will constitute a default of this Agreement by a Party (each an “ Event of Default ”):

(a)     failure to pay any undisputed amount due and payable to the other Party under this Agreement within ten (10) business days after such amount becomes due and payable and such failure is not remedied within a period of thirty (30) days of written notice of such failure from the other Party;

(b)    a Party becomes Bankrupt;
 
(c)    a Party is in material breach of any of its other material obligations under this Agreement and fails to cure such breach to the reasonable satisfaction of the non-defaulting Party within forty-five (45) days of written notice of such breach from the non-defaulting Party; and

(d)    any representation, warranty or statement made by a Party herein proves to be untrue in any material respect on the date on which it was made.

11.2 Termination .     Upon the occurrence of an Event of Default by either Party, the non-defaulting Party shall have the right to terminate this Agreement effective immediately upon delivery of written notice to the defaulting Party.

11.3 Procedures on Termination . Following termination of this Agreement, each Party

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will cooperate with the other as reasonably necessary to avoid disruption of the ordinary course of the other Party’s business. Subject to HSM’s right to seek reimbursement pursuant to Section 5.3 , termination shall not affect MPLS’s right to payment for personnel provided prior to termination to perform the Services provided prior to termination.

11.4 Effect of Termination . Upon termination of this Agreement, all rights and obligations of the Parties hereunder shall cease, provided that such termination shall not effect or excuse a Party’s breach of this Agreement prior to termination.
ARTICLE XII
INDEMNIFICATION AND LIABILITY

12.1 Indemnification by HSM . HSM shall be liable for and shall indemnify, defend and hold harmless each of the MPLS Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of HSM’s actions or performance of its obligations hereunder to conform to Applicable Law; (b) claims for bodily injury or death or physical loss of or damage to property arising from MPLS’s or HSM’s actions or omissions; (c) any negligence, gross negligence, default or willful misconduct of HSM in connection with the performance of, or failure to perform, this Agreement by HSM; and (d) any claims for workers’ compensation, bodily injury, illness, death or physical loss of or damage to property arising under the Jones Act, the Longshore and Harbor Workers’ Compensation Act or general maritime law, except to the extent the circumstances described in the foregoing subparagraphs (a), (b), (c) and (d) are a result of the gross negligence or willful misconduct of MPLS or its Affiliates.

12.2     Indemnification by MPLS . MPLS shall be liable for and shall indemnify, defend and hold harmless each of the HSM Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of MPLS’s actions or performance of its obligations hereunder to conform to Applicable Law; (b) claims for bodily injury, illness or death or physical loss of or damage to property arising from the gross negligence or willful misconduct of MPLS or its Affiliates; (c) any gross negligence or willful misconduct of MPLS or any of its Affiliates in connection with the performance of, or failure to perform, this Agreement; and (d) any and all actions, suits or proceedings alleging that HSM is an employer or joint employer of any MPLS employee, except claims for bodily injury, illness or death or physical loss of or damage to property arising under the Jones Act or general maritime law, unless those claims are a result of the gross negligence or willful misconduct of MPLS.

12.3 Limitations and Liability . IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS, LOSS OF DATA, LOSS OF GOODWILL AND LOSS OF CAPITAL, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE (EXCEPT TO THE EXTENT THAT SUCH DAMAGES ARE PAID TO A THIRD PARTY AS A RESULT OF A THIRD PARTY CLAIM) ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR THE PROVISION

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OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT EITHER PARTY TO THIS AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

12.4 Risk Allocation Essential . Each Party agrees that the Fees charged under this Agreement reflect the agreed allocation of risk between the Parties, including this Article XII , and the limitations on liability in Section 12.3 . Modifying the allocation of risk from what is stated here would affect the Fees charged by MPLS, and in consideration of those Fees, each Party agrees to the stated allocation of risk.

12.5 Indemnification Procedures .

(a)      Within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article XII , the Indemnified Party will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim to the extent then known by the Indemnified Party.

(b)      The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article XII , including the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any matter or any issues relating thereto; provided , however , that no settlement involving the payment of money shall be entered into without the consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such claim; and provided further , that no settlement containing any form of injunctive or similar relief shall be entered into without the prior written consent of the Indemnified Party, which consent shall not be unreasonably delayed, conditioned or withheld.

(c)      The Indemnified Party agrees to cooperate in good faith and in a commercially reasonable manner with the Indemnifying Party, with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification under this Article XII , including the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense and counterclaims, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party reasonably considers relevant to such defense and counterclaims, the making available to the Indemnifying Party of any employees of the Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties and facilities of the Indemnified Party; provided , however , that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 12.5 . The obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence shall not be construed as imposing upon the Indemnified Party an obligation to hire and pay for

16



counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article XII ; provided , however , that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims.

(d)      In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from Third Parties.

(e)      Notwithstanding anything to the contrary hereunder, no cause of action, dispute or claim for indemnification may be asserted against any Party or submitted to arbitration or legal proceedings which accrued more than two (2) years after the later of (i) the occurrence of the act or event giving rise to the underlying cause of action, dispute or claim and (ii) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Indemnified Party.

ARTICLE XIII
MISCELLANEOUS

13.1 Entire Agreement . This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the Parties with respect to such subject matter.

13.2 Choice of Law; Dispute Resolution .

(a)      Choice of Law . This Agreement shall be subject to and governed by the laws of the State of New York, without regard to the conflict of law provisions thereof to the extent such rules or principles would require or permit the application of the laws of any other jurisdiction.
 
(b)     Mediation . If the Parties cannot resolve any Dispute or claim arising under this Agreement, then no earlier than ten (10) days nor more than sixty (60) days following written notice to the other Party, any Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “ Mediation Notice ”) to the other Party. In connection with any mediation pursuant to this Section 13.2(b) , the mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties. All costs and expenses of the mediator appointed pursuant to this Section shall be shared equally by the Parties. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties, shall govern any mediation pursuant to this Section. In the mediation, each Party shall be represented by one or more senior representatives who shall have authority to resolve any Disputes. If a Dispute has not been resolved within thirty (30) days after the receipt of the Mediation Notice by a Party,

17



then any Party may refer the resolution of the Dispute to any federal or state court located in Ohio in accordance with Section 13.2(c) .

(c)     Litigation . Each Party agrees that it shall bring any action or proceeding in respect of any Dispute or claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Ohio and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 13.9 . The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Ohio for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.

13.3 Amendment . This Agreement may only be amended, modified or supplemented by a written instrument signed by an Authorized Representative of the Parties.

13.4 Waiver; Cumulative Remedies . Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by an Authorized Representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. No single or partial exercise of any right or remedy under this Agreement precludes any simultaneous or subsequent exercise of any other right, power or privilege. The rights and remedies set forth in this Agreement are not exclusive of, but are cumulative to, any rights or remedies now or subsequently existing at law, in equity or by statute.
13.5 Survival . Notwithstanding any suspension or termination of this Agreement, the Parties shall continue to be bound by the provisions of this Agreement that reasonably require some action or forbearance after such suspension or termination, including those relating to confidentiality obligations, audit rights, warranties, compliance with Applicable Laws, governing law, dispute resolution, indemnities, and limitation of liability.

13.6 Severability . The provisions of this Agreement are separable and severable. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under Applicable Law. If any one or more of the provisions contained herein is, for any reason, held to be invalid, illegal or unenforceable in whole or in part by any court of law or equity, then such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.

13.7 Successors and Assigns . This Agreement shall be binding upon and inure to the

18



benefit of the Parties and their successors and permitted assigns; provided , however , that the rights and obligations of any Party under this Agreement shall not be assignable by such Party without the prior written consent of an Authorized Representative of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed. The successors and permitted assigns hereunder shall include any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise).

13.8 Third Party Beneficiaries . Except to the extent otherwise provided in Article XII with respect to the rights of the Indemnified Parties, the provisions of this Agreement are solely for the benefit of the Parties and their respective successors and permitted assigns and shall not confer upon any Third Party any remedy, claim, liability, reimbursement or other right. Notwithstanding Article XII , the Parties may rescind or vary this Agreement, in whole or in part, without the consent of any Third Party, and no Third Party shall be entitled to assign any benefit or right conferred upon it under this Agreement.

13.9 Notices . All notices, consents, directions, approvals, objections, refusals, instructions, requests, demands, and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given or delivered (i) when delivered personally; (ii) if transmitted by facsimile, when confirmation of transmission is received; (iii) if by email, when receipt of such email is acknowledged by return email, (iv) if sent by registered or certified mail, postage prepaid, return receipt requested, on the third business day after mailing; or (v) if sent by private courier, when received; and shall be addressed to the appropriate Party at its address specific below, or at such other address as such Party may specify by notice to the other Party:

if to

Marathon Petroleum Logistics Services LLC
539 South Main St.
Findlay, OH 45840
Attention: President

if to

Hardin Street Marine LLC
200 East Hardin St.
Findlay, OH 45840
Attention: President

or, to such other address as such Party may indicate by a notice delivered in accordance with this Section 13.9 .

13.10 Counterparts . This Agreement may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. Executed facsimiles of such

19



counterparts shall be deemed enforceable to the same extent as if they were executed original documents.

[Remainder of page intentionally left blank.]

20




IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their Authorized Representatives as of the date first above written.

 
Marathon Petroleum Logistics Services LLC
 
 
 
 
By:
/s/ John S. Swearingen
 
 
John S. Swearingen, President
 
 
 
 
Date:
February 3, 2016
 
 
 
 
 
 
 
 
 
 
Hardin Street Marine LLC
 
 
 
 
By:
/s/ Craig O. Pierson
 
 
Craig O. Pierson, Vice President
 
 
 
 
Date:
February 3, 2016
 
 
 
 
 
 
 
 
 



21



Exhibit A
AUTHORIZED REPRESENTATIVES


As to:

Marathon Petroleum Logistics Services LLC

President
Any Vice President
Treasurer

Hardin Street Marine LLC

President
Any Vice President
Treasurer



A-1




Exhibit B
SERVICES AND FEES

SERVICES

MPLS shall provide, or cause to be provided, a sufficient number of suitably qualified and experienced personnel as is required to perform the following Services, as required or requested by HSM:
 
1. Health, Environment, Safety and Security : Make all regulatory contacts, monitor and develop and lead all safety and security programs. Develop and present all safety and security projects.

2. Operations : Run and maintain the daily field operations of the marine repair facility, marine vessels and related equipment. Perform operational support services such as vetting, scheduling equipment and product movements, loss control practices and dispatch coordination.

3. Emergency Response : Ensure that emergency response plans are in place for all locations, vessels and equipment and ensure that employees are trained and ready to respond to an incident if needed.

4. Training : Train all employees. Provide continuous training for all employees. Ensure that all employees who need to be Coast Guard qualified meet or exceed appropriate guidelines.

5. Finance and Administration : Pay all monthly bills and provide payroll services. Close the financial books on a monthly basis and provide assistance to Marathon Petroleum Corporation’s financial reporting group on external SEC filings. Provide cost accounting and budgeting services for all of the HSM field offices and Findlay process departments. Monitor and update all fixed asset records for all companies HSM operates.

6. Human Resources : Consult with HSM management on the development and implementations or human resource strategies. Administering the human resource policies, practices and procedures applicable to MPLS employees providing the Services.

7. Logistics and Commercial Services : Assist with strategic planning for HSM. Advise regarding resource allocation for HSM. Provide brokerage services for third party chartered equipment. Monitor HSM’s capital and expense budget. Work with finance and administration, and other Marathon Petroleum Company LP departments on the preparation and analysis of monthly, quarterly and annual financial and cash flow forecasts.


GENERAL FEES

The Fees for the provision of personnel to perform the Services shall be calculated and invoiced consistent with the following:

B-1






1. MPLS shall calculate on a monthly basis the employee-based cost, which is the actual salary and wage costs incurred for each employee to be provided by MPLS hereunder for such month (the “ Monthly Salary and Wages ”).

2. As of the Effective Date, and on an annual basis consistent with established budget schedules and practices, MPLS shall calculate the estimated total benefits cost for the applicable calendar year to be incurred for each employee to be provided by MPLS hereunder (the “ Annual Estimated Benefits ”). At the end of each calendar quarter, MPLS may compare the latest projection of benefit costs to be charged for the year to the Annual Estimated Benefits (the resulting “true-up” of these two amounts, whether positive or negative, being referred to herein as the “ Quarterly Benefits Adjustment ”). At the end of the calendar year, MPLS will calculate a “true-up”, whether positive or negative, of the total Annual Estimated Benefits plus or minus any Quarterly Benefits Adjustments charged for the year compared to the actual cost of such benefits for the year (the “ Annual Benefits True-Up ”).

3. Each month hereunder, MPLS, in its sole and reasonable discretion, shall calculate an appropriate bonus accrual, including burden, consistent with its good faith estimate of the employees provided by MPLS hereunder on a total headcount basis (the “ Bonus Accrual ”). For the month in which any bonus payment is made to the employees provided by MPLS hereunder, MPLS will calculate a “true-up” of the Bonus Accrual charged for the previous year compared to the actual cost of bonuses, including burden, paid to such employees (the resulting “true-up” of these two amounts, whether positive or negative, being referred to herein as the “ Bonus True-Up ”).

4. Following the end of each month, MPLS will submit an invoice to HSM (the “ Monthly Invoice ”) which shall include the following:

a.
the Monthly Salary and Wages;
b.
one-twelfth (1/12) of the Annual Estimated Benefits plus or minus any Quarterly Benefits Adjustment and any Annual Benefits True-Up;
c.
any Bonus Accrual and any Bonus True-Up; and
d.
the MPLS stock-based compensation expense attributed to MPLS for such month.

5. For the avoidance of doubt, the Parties agree that the Fees for the remainder of calendar month of the Effective Date will be calculated in the manner above and will be a pro-rata portion of such amounts based on the number of days remaining in such month from the Effective Date.

B-2


GUARANTEED SUPPLY AGREEMENT
This is a Guaranteed Supply Agreement dated January 1, 2015 between Marathon Petroleum Company LP (“MPC”), a Delaware limited partnership with offices at 539 South Main Street, Findlay, Ohio 45840 and Hardin Street Marine LLC (“HSM”), a Delaware limited liability company with offices at 200 East Hardin Street, Findlay, Ohio 45840.

1.    Definitions. “Product” shall mean Dyed No. 2 Ultra Low Sulfur Diesel with 0-5% Biodiesel “Terminal,” and “Volumes” shall refer to the MPC terminals and the associated quantities (in gallons) listed in the table in Section 3, if applicable. “Month” (capitalized or not) shall mean a calendar month. “Ship From” shall mean the MPC Terminal from which the Product will be made available for pick up by HSM. “Actual Volume” shall mean the amount of Product purchased by HSM from a MPC Terminal during an initial term or any successive one-year renewal term.

2.    Term. The initial term of this Agreement is from January 1, 2015 to December 31, 2015, inclusive. This Agreement shall automatically renew for successive one-year renewal term(s) unless either party gives written notice of non-renewal at least 60 days prior to the end of the initial term or any subsequent one-year renewal term.

3.    Quantity. (A) During any term of this Agreement, HSM shall purchase 90% of the Volumes of each Product at the associated Terminal as shown in the table below. (B) During any Month, MPC shall not guarantee availability of Product for HSM’s purchase in amounts greater than 100% of the Volumes set forth in the table below, prorated monthly. (C) In the event the needs of HSM increase beyond the volumes specified in the table below, HSM shall notify the MPC Regional Office in writing of the additional volume requested at least 30 days prior to lifting. The MPC Regional Office shall assess Product availability, and if the parties mutually agree, shall amend the volumes in the table set forth below.

Terminal
Product
Month
Total Volume
Kenova, WV
No. 2 MV 15 Dyed ULSD
275,000 gallons
3,300,000

4.    Price. The price for any given load of Product shall be:

Terminal
Price
Viney Branch
Wholesale Rack + $0.0050 per Gallon


HSM acknowledges and agrees that MPC may use the Wholesale Reseller Price to manage customer liftings when MPC’s Product supply at the Viney Branch Terminal is limited and HSM waives the right to claim that this method of pricing is unfair, anti-competitive, tortious, or a breach of contract.

5.    Delivery. The Product shall be picked up by HSM at MPC’s Kenova, WV terminal by tow boats or barges. Delivery terms are FOB Kenova, WV terminal.

6.    Remedies. (A) If Buyer does not purchase Product on a ratable basis throughout the initial term or any of the successive one-year renewal term(s) of this Agreement, MPC may reduce Volume for the successive one-year renewal term(s) based on the prior term’s (initial term or any successive one-year renewal term(s)) Actual Volume, prorated monthly, for each successive one-year renewal term that HSM does not purchase 90% of the Volume, of Product. (B) MPC may cancel this Agreement upon 15 days’ advance written notice if, for any two consecutive months, HSM fails to purchase 90% of the Volumes, prorated monthly, at the associated Terminal as shown in the table in Section 3.

7.    General. (A) THE ATTACHED PRODUCT SALES TERMS ARE PART OF THIS AGREEMENT , but the terms herein shall prevail over any conflicting terms in the Product Sales Terms. (B) This Agreement has been executed in two original counterparts. (C) HSM has the right to disclose the terms and conditions contained herein with its agents, employees, directors and officers with a need to know, however these terms and conditions are confidential, and any unauthorized disclosure by HSM without the express written consent of MPC is a material breach of this Agreement.

Marathon Petroleum Company LP
By: MPC Investment LLC, its General Partner
 
Hardin Street Marine LLC
By:
/s/ George P. Shaffner
 
By:
/s/ Craig O. Pierson
Title:
Sr. Vice President
 
Title:
Vice President




(Rev. 4/1/14)    
PRODUCT SALES TERMS (Marine – FOB Seller Facility)

These terms will apply to any agreement to which they are attached, in which they are incorporated by reference, or which is found on the other side of these terms. In the event of a conflict between that agreement and these terms, that agreement will control. That agreement and these terms are collectively referred to below as the “Agreement”, and the term “Products” refers to the petroleum products sold by Marathon Petroleum Company LP (“Seller”) under this Agreement to the buyer identified in this Agreement (“Buyer”).

1.    Payment. Payment terms are subject to change by Seller at any time. If Seller does not receive payment when due, it may impose a late payment charge not to exceed the maximum amount allowed by law and if the account is placed for collection or suit is filed thereon, Seller will be entitled to attorney fees and court costs. PAYMENTS TENDERED IN FULL SETTLEMENT OF A DISPUTED AMOUNT MUST BE CLEARLY LABELED AS SUCH AND SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO: COMMERCIAL CREDIT MANAGER, MARATHON PETROLEUM COMPANY LP, 539 SOUTH MAIN STREET, FINDLAY, OHIO 45840. Seller may set off amounts owed by Buyer to Seller or its subsidiaries or affiliates against amounts owed by Seller to Buyer.

2.    Taxes . Buyer will pay, and indemnify Seller for, all taxes, fees, duties, environmental levies, and other charges (whether imposed on manufacture, processing, use, purchase, sale, resale, delivery, receipt, title transfer, inspection, removal from storage, measurement or passage through a measurement device, receipt of payment, or other activity, and regardless of when imposed) relating to Products, or their raw materials or feedstocks. The sole exception to this obligation is taxes based on or measured by Seller’s net income or worth. Upon account set up, Buyer will promptly furnish Seller with the Buyer’s appropriate state tax registration number(s), its federal identification number and any applicable tax exemption certificates.  Buyer will promptly inform Seller of any changes to its tax registration or exemption status that may occur after account setup.

3.    Delivery . This sale will be F.O.B. the “Ship From” location stated in this Agreement. Title and risk of loss will pass to Buyer at the “Ship From” location as Product passes the barge permanent hose connection. Title and risk of loss will not be affected by Seller’s ownership of the transportation assets, arrangement of shipment, and/or pre-payment or collection of shipment expenses from Buyer. Seller will have no obligation to deliver Product at the “Ship From” location unless Buyer, its agents, and its carriers have entered into, and are in compliance with, agreements governing access to the “Ship From” location.

4.    Quantity and Inspection . Quantities will be determined in order of preference: per down gauge measurement of Seller’s static shore tank taken immediately before and after discharge by a mutually agreed upon licensed petroleum inspector; if Seller’s shore tank(s) is active or in the critical zone during loading, Buyer’s static shore tank(s) up gauge measurement, plus any OBQ (on-board quantity), less any ROBQ (remaining on-board quantity,)  will be used at discharge by a mutually agreed upon licensed petroleum inspector for quantity determination; if both Seller’s and Buyer’s shore tank(s) is active or in the critical zone during loading and unloading, then the quantity shall be determined by a mutually agreed upon licensed petroleum inspector by taking the average of the barge quantities at load and discharge, taking account for VEF (vessel experience factors), OQB and ROBQ or any other means acceptable by both parties. Quantities will be temperature adjusted to 60 degrees Fahrenheit using built in temperatures compensators or ASTM tables. Either party may require that Product quality be determined by a jointly-selected, licensed petroleum inspector, whose findings will be conclusive. Customary inspection costs will be shared equally, but additional services (including additional quality analyses) will be paid for by the party requesting them. For avoidance of doubt, any quality testing by Buyer on parameters not warranted by Seller will not relieve Buyer of its obligation to perform pursuant to this Agreement

5.    Compliance With Laws . Buyer, its agents, and its carriers will comply with all laws, regulations, and standards applicable to the sale, delivery, (including loading, unloading, and/or transloading), transportation, storage, use, and disposition of Products.

6.    Safety and Health. Material Safety Data Sheets (MSDS) or Safety Data Sheets (SDS) for Products are available at the following Internet address: http://www.marathonpetroleum.com/brand/products/msds/. Buyer has received Material Safety Data Sheets (or SDS) and other information about the safety and health aspects of Products, will communicate this information to its employees, agents, carriers and
 
customers, and will require them to further communicate this information in a like manner.

7.    Warranties . Seller warrants good title to all Products supplied hereunder at the time of delivery to Buyer and that each Product supplied hereunder will comply with the applicable Seller or attached specifications in effect at the time and place title thereto passes to Buyer. MPC DISCLAIMS ANY AND ALL OTHER WARRANTIES AND REPRESENTATIONS WITH RESPECT TO THE PERFORMANCE OR QUALITY OF PRODUCTS SUPPLIED HEREUNDER INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR BUYER’S PARTICULAR OR INTENDED PURPOSES OR USAGE. Seller will, at its option and its cost (including expense of return and re-delivery), remedy the defect in, replace, or refund the purchase price of, any Product that fails to meet this warranty. THIS IS BUYER’S EXCLUSIVE REMEDY FOR BREACH OF WARRANTY.

8.    Claims . All claims must be in writing. Product quality or quantity claims must be delivered to Seller within 30 days after delivery of the Product, and all other claims by Buyer must be delivered to Seller within 60 days after the event giving rise to the claim. Buyer will preserve, and permit Seller to inspect and sample, the subject Product. ANY LAWSUIT AGAINST SELLER WHICH INVOLVES THIS AGREEMENT OR THE SALE OF PRODUCTS MUST BE BROUGHT WITHIN ONE YEAR AFTER THE CAUSE OF ACTION ACCRUES.

9.    Limitation of Liability. IN NO EVENT WILL SELLER’S LIABILITY FOR DAMAGES (WHETHER ARISING FROM BREACH OF CONTRACT OR WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE) EXCEED THE PURCHASE PRICE OF THE PRODUCT CONCERNED NOR WILL SELLER BE LIABLE FOR PUNITIVE , INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.    Force Majeure and Allocation . Neither party will be liable to the other for any delay or failure in performance (other than to make payments when due) to the extent that it is caused by circumstances beyond its reasonable control, or by fire; explosion; flood; earthquake; storm; act of God; mechanical breakdown; sabotage or vandalism; strike or other labor disturbance (Seller will not be required to settle a labor dispute or take an action that might involve it in a labor dispute); shortages of, or delays in obtaining, crude oil, feedstocks, raw materials or finished products, equipment, labor, transportation, or storage; interruption of utility services; or compliance with any law, regulation or order (regardless of validity) of any governmental or military authority. Further, if Seller at any time decides that its Product supply is insufficient to meet the actual or forecasted needs of Seller, its divisions and subsidiaries, and its and their customers (whether under contract or not), Seller may allocate its supply among all of them in any fair and reasonable manner determined by Seller.

11.    Indemnity. Buyer, its employees, workmen, agents, servants, contractors, or Vessel, as defined below, to comply with the terms and conditions of this Agreement; or (iii) any act or failure to act in the handling, loading, unloading, transloading, storage, transportation, resale, or other use, by Buyer or others, of a Product sold under this Agreement. The only exception to this obligation is when Seller’s negligence or intentional misconduct is determined by a court to be the sole cause of the damage. In responding to any third-party claims, Seller may select an attorney and may enter into any settlement without affecting this obligation.

12.    Default . Seller may terminate this Agreement in the event of a material default by Buyer which is not cured within 10 days after notice of default is given. Seller may also terminate this Agreement at once (and Buyer will have no right to cure) if Buyer either fails to pay any amount when due or violates the provisions of paragraph 14 below. The



(Rev. 4/1/14)

right to terminate is in addition to any other remedy that may be available. A waiver of a default in one instance does not extend to any subsequent default.

13.    Export Sales . For any Product that will be exported from the U.S.A. by Buyer or another Party, all export-related requirements are the sole responsibility of Buyer or the Exporter. Seller is not responsible for compliance with U.S. export control laws or requirements in such transactions unless it agrees to assume that responsibility in writing.

Further, no Product received from Seller is intended by Seller to be shipped, either directly or indirectly, to any country, entity, or person or for any end-use that is prohibited under the EAR, OFAC regulations, ITAR or as otherwise prohibited by any applicable law or regulation. Any diversion contrary to U.S. law is strictly prohibited.

For any Product that will be exported from the U.S.A. by Buyer, Seller reserves all rights as a manufacturer under 19 U.S.C. §1313 and related regulations and reserves all rights to claim drawback. Buyer will provide Seller with proof of export satisfactory to Seller, and any other information needed by Seller for the timely and accurate filing of Seller’s claim.

14.    Trademarks . Buyer will not use Seller’s name, trade or service marks, or trade dress in any way with regard to the Products.

15.    General . (A) The sale of Products to Buyer, and this Agreement, will be governed by Ohio law, without giving effect to its principles of conflict of laws provisions and excluding the United Nations Convention on Contracts for the International Sales of Goods. (B) Buyer’s obligations in paragraphs 2, 5, 6, 8, 9, 11, 13 and 14 above will survive termination of this Agreement. (C) The invalidity or unenforceability of any part of this Agreement will not affect the validity or enforceability of its remaining provisions. (D) This Agreement, and any rights or duties under it may not be assigned or delegated by Buyer; any attempted assignment or delegation by Buyer will be void. (E) In the event of a sale or transfer of all or substantially all of Buyer’s equity shares or assets, or a controlling interest in either, by merger, acquisition, exchange, joint venture, or other similar transaction, Seller may, at its sole option, immediately terminate this Agreement. (F) No claim or notice relating to this Agreement to be given to Seller will be valid unless sent by certified mail return receipt requested or by a national overnight courier service to Seller addressed as follows: Manager, Specialties Products Marketing, Marathon Petroleum Company LP, 539 South Main Street, Findlay, Ohio 45840. All notices given by Seller to Buyer may be sent to the addresses shown on the most recent written correspondence sent to Seller by Buyer, or to such addresses as may be requested in writing by Buyer in the future. (G) No amendment or modification of this Agreement will be valid unless made in a writing signed by authorized representatives of both parties. Any attempt by either party, through a job order, purchase order, invoice, or other document, to vary in any degree any of the terms of this Agreement will be deemed immaterial and will be void, unless contained in an amendment executed as specified hereinabove. (H) No failure to exercise or election not to exercise any of a party’s rights hereunder will constitute any waiver or modification of such rights, or be deemed to be a course of performance or dealing, modifying or waiving the parties’ rights, remedies, duties, obligations or liabilities under this Agreement or any part thereof. (I) This Agreement contains the entire agreement of the parties with respect to its subject matter.