Transportation Contract
| Expiration Date | 06 January 1999 |
| Date | 06 January 1998 |
| Parties | Enterprise Transportation Company ("Carrier"), Enterprise Products Operating L.P. ("Shipper") |
| Renewal Term | perpetual |
| Section | Commercial Contracts |
EXHIBIT10.3
[ENTERPRISELOGOAPPEARSHERE]
ENTERPRISETRANSPORTATIONCOMPANY
adivisionofEnterpriseProductsCompany
P.O.BOX4324.PHONE713/880-6500ContractNo.017
HOUSTON,TX77210______
Date:June1,1998
TRANSPORTATIONCONTRACT
THISCONTRACTisenteredintobyandbetweenENTERPRISETRANSPORTATION
COMPANY,adivisionofEnterpriseProductsCompany,("Carrier"),
andENTERPRISEPRODUCTSOPERATINGL.P.,aDelawarelimitedpartnership
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P.O.Box4324Houston,TX77210("Shipper").
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(Address)(City)(State)
Shipperisengagedinbusinessasamanufacturer,distributorordealerof
chemicalsorpetroleumproducts("COMMODITIES"),andShipperrequires
transportationofCommoditiesinintrastate,interstateorforeigncommerce;
CarrierisauthorizedtoprovidetransportationforShipperasamotorcontract
carrierunderauthorityissuedbytheU.S.DepartmentofTransporationinDocket
No.MC-121496.
NOW,THEREFORE,inconsiderationofthemutualpromiseshereincontained,
thepartiesagreeasfollows:
1.ShippershalltendercommoditiestoCarrierfortransportationby
CarrierinaspecializedservicedesignedtomeetthedistinctneedsofShipper
ininterstateorforeigncommercebetweenpointsintheUnitedStates.
2.ShippershalltendertoCarrierandCarriershalltransportina
seriesofshipmentsnotlessthan10,000poundsofCommoditiesperyear.
3.AscompensationfortheservicesprovidedbyCarrierunderthis
contract,ShippershallpayCarrierinaccordancewith1)RateAppendicesmaking
referencetothiscontractwhichshallfromtimetotimebeagreedtobetween
thepartiesand2)Carrier'sContractCarriageRulesandRegulationsattachedas
ExhibitA,whichareincorporatedinthiscontractbythisreferenceforall
purposes(collectively,the"Schedule").
4.Thiscontractshallbeforatermofoneyearcommencingonthedate
firstabovewritten;thereafter,itshallautomaticallycontinueuntil
terminatedbyeitherpartyuponnotlessthanthirty(30)dayspriorwritten
noticetotheotherparty.
THISCONTRACTISSUBJECTTOTHETERMSANDCONDITIONSONTHEREVERSESIDE.
ENTERPRISEPRODUCTSOPERATINGL.P.ENTERPRISETRANSPORTATIONCOMPANY
ByEnterpriseProductsGP,LLC,itsgeneralpartner
(Shipper)
By:/s/A.W.BellBy:/s/GaryMiller
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Title:ExecutiveVicePresidentTitle:ExecutiveVicePresident
-----------------------------------------------------------
TERMSANDCONDITIONS
1.Foreachshipmentunderthiscontract,Shippershalldesignatethe
pointsoforiginanddestinationandanypointorpointswherestopoffsshallbe
madeforpartialloadingorunloading.Shippershallexertitsbesteffortsto
loadeachshipmenttothelawfulcapacityofCarrier'svehicle.Eachshipment
shallbeevidencedbyashippingdocumentsignedbyCarrier,consignorand
consignee,showingthekindandquantityofCommoditiesreceivedanddelivered
byCarrierattheloadingandunloadingpoints,respectively;provided,however,
theprovisionsofanyshippingdocument,billofladingorotherinstrumentto
thecontrarynotwithstanding,thiscontractandtheScheduleshallexclusively
governtherelationshipofthepartieswithrespecttothesubjectmatterof
thiscontract.
2.(a)CarriershallinvoiceShipperfortheservicesprovidedunderthis
contractpromptlyuponperformance.Allsumsdueunderanyinvoiceshallbe
payablewithoutdiscountuponreceiptoftheinvoice.Amountsmorethan30days
pastdueshallbearinterestfromtheduedatetothedateofpaymentatthe
lesserof1)therateofinterestestablishedbyChaseManhattanBank,NewYork,
NY,fromtimetotimeasitsprimerate,plustwo(2)percent,or2)themaximum
non-usuriousinterestratewhichmaybechargedShipperpursuanttoapplicable
Texaslaw,Article5069-1.04TexasRev.Civ.Stat.,asamended.
(b)AllsumsdueunderthiscontractarepayableatCarrier'sofficesin
Houston,HarrisCounty,Texas.
3.(a)Carriershallperformservicesunderthiscontractasanindependent
contractorandshallhaveexclusivecontrolanddirectionofitsemployeesand
exclusiveresponsibilitytoShipperforanyofCarrier'sowner-operator
contractorsengagedintheperformanceofthiscontract.Carriershallpayall
wages,local,state,andfederalpayrolltaxesorcontributionsortaxesfor
unemploymentinsurance,worker'scompensation,pensions,socialsecurityand
relatedprotectionwithrespecttoitsemployees.
(b)Carriershall,atitssolecostandexpense,furnishallvehicles,
fuel,oil,tires,andotherparts,maintenance,supplies,driversandequipment
necessaryorrequiredfortheperformanceoftheservicestobeprovidedunder
thiscontract.Carriershallprocureandmaintainalllicensesandpermits
requiredbylocal,state,orfederallawandcomplywithallapplicablelaws,
regulationsandgovernmentalorderswithrespecttotheservicestobeprovided
underthiscontract.
4.(a)Carriershall,atitssolecostandexpense,procureandmaintain
liabilityinsurancewithareputableandfinanciallyresponsibleinsurance
carrierorcarriersproperlyinsuringCarrieragainstliabilityandclaimsfor
injuriestopersons(includinginjuriesresultingindeath)andfordamageto
propertyinamountsnotlessthantheMinimumLevelsofFinancialResponsibility
forMotorCarriersprescribedbytheU.S.DepartmentofTransportation(49
CFR(S)387etseq.).
(b)Subjecttothelimitsoftheinsurancecoveragesspecifiedinparagraph
4(a)above,Carriershalldefend,indemnifyandholdShipperharmlessfromand
againstallloss,damage,expense,actionsandclaimsforinjurytopersons
(includinginjuryresultingindeath)andlossofordamagetopropertyarising
outoforinconnectionwithCarrier'snegligenceintheperformanceofthis
contract;provided,however,Carriershallnotbeliableforlossofordamage
toCommoditiestransportedtotheextentsuchlossordamagewasnotcausedby
Carrier'snegligenceandwascausedbyanactofGod,thepublicenemy,theact
ofShipperortheinherentviceoftheCommodities.Wherepersonalinjuryor
deathorlossofordamagetopropertyarisesoutofthejointnegligenceof
CarrierandShipper,Carrier'sdutyofindemnificationshallbeinproportionto
itsallocableshareofsuchjointnegligence.InnoeventshallCarrierbe
liableforanylostprofitsorspecial,indirectorconsequentialdamages.
5.Ifeitherpartyisrenderedunable,whollyorinpart,byforcemajeure
oranyothercauseofanykindnotreasonablyforeseeableorwithinitscontrol
toperformorcomplywithanyobligationorconditionofthiscontract,then
upongivingnoticeandreasonablyfullparticularstotheotherpartysuch
obligationorconditionshallbesuspendedduringthecontinuanceofthe
inabilitysocaused,andsuchpartyshallberelievedofliabilityandshall
suffernoprejudiceforfailuretoperformduringsuchperiod;provided,
however,obligationstomakepaymentforamountsthenaccruedordueunderthis
contractshallnotbesuspended,andthecauseofsuspension(otherthanstrikes
ordifferenceswithworkers)shallberemediedinsofaraspossiblewith
reasonabledispatch.Settlementofstrikesanddifferenceswithworkersshall
bewhollywithinthediscretionofthepartyhavingthedifficulty.Theterm
"forcemajeure"shallinclude,withoutlimitation,actsofGodandthepublic
enemy,theelements,fire,accidents,breakdown,strikes,andanyother
industrial,civilorpublicdisturbance,inabilitytoobtainmaterials,
supplies.permitsorlabor,anylaws,orders,rules,regulations,actor
restraintsofgovernmentorgovernmentalbodyorauthority,civilormilitary.
6.(a)ifeitherpartyshouldmakeageneralassignmentforthebenefitof
creditorsorifareceivershouldbeappointedonaccountoftheinsolvencyof
eitherparty,theotherpartymay,withoutprejudicetoanyotherrightor
remedy,terminatethiscontractuponseven(7)dayspriorwrittennotice.
(b)Terminationofthiscontractforanyreasonshallnotreleaseeither
partyfromanyobligationthatmayhaveaccruedbeforesuchtermination,nor
shallitprecludeeitherpartyfromexercisinganyremediesitmighthaveinlaw
orequitytoenforcesuchobligations.
7.NowaiverbyShipperorCarrierofanydefaultoftheotherunderthis
contractshalloperateasawaiverofanyfuturedefault,whetheroflikeor
differentcharacter.
8.Anynoticeinwritingbyonepartyunderthiscontractshallbegivenby
registeredorcertifiedmail,returnreceiptrequested,totheotherpartyat
itsaddressshownonthefirstpageortosuchotheraddressassuchpartymay
fromtimetotimespecifybynoticegivenaccordingtothisprovision.AU.S.
PostalServicereceiptshowingthedeliveryofsuchnoticeandthedatethereof
shallbeprimafacieevidenceofthegivingofsuchnoticeonthedateofsuch
receipt.
9.(a)Thiscontractshallbebindinguponandinuretothebenefitofthe
partiesandtheirrespectivesuccessorsandassigns.
(b)Thiscontractshallnotbeassignedinwholeorinpartbyeitherparty
withoutthepriorwrittenconsentoftheother,exceptthatapartymayassign
thiscontracttoasuccessorentityasaresultofamergerorconsolidationor
toanotherentitywhichacquiressubstantiallyalloftheassetsofthatparty.
10.Thetermsandconditionsofthiscontractandallinformation
concerningthebusiness,customers,products,andprocessesofeachpartywhich
maycomeintothepossessionoftheotherpartyduringthecourseofthe
negotiationorperformanceofthiscontractareconfidentialandshallnotbe
disclosedtoanythirdpartywithoutthepriorwrittenconsentoftheother
party;provided,however,eitherpartymaydiscloseinformationconcerningthis
contracttoanyindependentpublicaccountingfirmretainedtoperformanannual
financialauditofthatparty.Thisobligationofconfidentialityshallexpire
two(2)yearsfromthedateofthelastshipmentunderthiscontract.
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