Form Approved

OMB 2133-0018

## Public reporting burden of this collection of information is estimated to average 70 hours per response. Send comments regarding this burden estimate or any other aspect of this information collection to the Maritime Administration, Office of Management and Information Services, 400 Seventh St., S.W., MAR-318, Room 7301, Washington, D.C. 20590.

##  INSTRUCTIONS FOR APPLICATION FOR SHIP FINANCING GUARANTEES

## Applications for ship financing guarantees (Guarantees) under Title XI, Merchant Marine Act, 1936, as amended (46 U.S.C. 1271‑‑1280 a; the \"Act\"), and the regulations prescribed to carry out the provisions of the Act (46 CFR Part 298; the \"Regulations\"), shall be prepared and submitted in substantially the form annexed. No Title XI Guarantee may be granted unless a completed application has been received.

## Prior to filing an application, a preliminary meeting should be arranged with the Director, Office of Ship Financing, in Washington, D.C. to discuss the Title XI application and requirements of the Title XI program.

## Please answer each question as completely as possible. The metric measurement system may be used when supplying data. If any item in the application is inapplicable to the Applicant\'s particular case or the answer is \"None,\" this should be so stated. The application must be printed or typewritten and ten (10) complete copies shall be filed with the Secretary, Maritime Administration. Three of these copies must be duly executed and certified by the applicant. All required attachments must be included with the application, except that only three (3) copies of Attachment III are required. The name and address of the Applicant shall be printed or typed on all accompanying papers for identification. Subsequent amendments and supplements to the application may be in letter form and shall be properly identified.

## Applicants must complete Parts I and II. Other parts are to be completed in accordance with the type of Guarantee applied for, as set forth in Part I, Item 5.

## A filing fee of \$5,000 must accompany the application. Applications will not be processed until the fee is received.

## ALL INFORMATION SUPPLIED IN PART I WILL BE RELEASED FOR PUBLIC INFORMATION PURPOSES. ALL INFORMATION SUPPLIED IN PARTS II THROUGH V WILL BE SUBJECT TO THE FOLLOWING:

## IF THE APPLICATION, INCLUDING THE ATTACHMENTS THERETO, CONTAINS INFORMATION THE APPLICANT CONSIDERS TO BE TRADE SECRETS OR COMMERCIAL OR FINANCIAL INFORMATION AND PRIVILEGED OR CONFIDENTIAL, OR OTHERWISE EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552, THE APPLICANT SHALL ASSERT A CLAIM OF EXEMPTION AT THE TIME OF APPLICATION. THE SAME REQUIREMENT SHALL APPLY TO ANY AMENDMENT TO THE APPLICATION.

Any amendment to the application filed shall be marked \"Amendment\" and
shall contain a statement on the first page thereof, clearly identifying
the document as an amendment to an application for Financing Guarantees,
stating the name of the applicant and the date of the application.

**PART I‑‑SUMMARY INFORMATION**

> 1\. Name and address of applicant
>
> 2\. Name and address of parent company *(if applicable)*
>
> 3\. Congressional district number of applicant
>
> 4\. Congressional district number of shipyard
>
> 5\. Nature of application *(check as many as applicable)*:
>
> \_\_ a) Construction period financing *(Also complete Part III)*
>
> \_\_ b) Mortgage period financing
>
> \_\_ c) Export Financing
>
> \_\_ d) Refinancing of existing debt *(Also complete Part IV)*
>
> \_\_ e) Reconditioning/Reconstruction *(Also complete Part V)*
>
> \_\_ f) Other (specify)
>
> 6\. The Proposal:
>
> a\) Describe briefly the proposed project including a brief
> description of the vessel(s) and the intended use of the vessel(s).
>
> b\) Provide the total estimated actual cost (details to be provided in
> Part II, Section IV D1); the requested level of financing (i.e., 872%,
> 75 %); and the estimated guarantee amount.
>
> c\) Indicate the requested period of the guarantee.
>
> d\) Give the name and address of the shipyard.
>
> e\) Indicate the estimated construction commencement and vessel
> delivery date(s).
>
> f\) Flag of vessel(s) upon delivery.
>
> g\) Has the Applicant or a related company previously applied for
> Title XI Guarantees? If so, under what name and what was the outcome?
>
> h\) Will the project involve the guarantee of:
>
> \_\_ Bonds
>
> Notes
>
> ­­­­\_\_ Bank Debt
>
> \_\_ Other (specify)
>
> i\) Name and phone number of principal contact concerning the Title XI
> application.
>
> j\) Does the Applicant have a web site on the Internet? If so please
> provide the site location.

**PART II - APPLICATION**

The undersigned,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(herein
referred to as the \"Applicant\"), hereby applies to the United States
of America, represented by the Secretary of Transportation, acting by
and through the Maritime Administrator (the \"Administrator\" ) under
the Act and the Regulations for Ship Financing Guarantees.

**I. THE APPLICANT: Its Identity**

**A. Form of Organization:**

Please detail the business structure of the Applicant and any bareboat
charterers of the vessel(s) to be financed (e.g., corporation,
partnership, limited partnership, limited liability company). Provide
the name, place of formation, date of formation and tax identification
number or equivalent. In addition, please provide the address of the
principal place of business as well as certified copies of the
certificate of incorporation and bylaws, certificate of formation,
partnership agreement or other documentation forming the entity.

**B. Ownership:**

1\. The Applicant and any bareboat charterer of the vessel(s) to be
financed shall provide the following information regarding the entity\'s
officers, directors, partners or members: name and address, office or
position, nationality and interest owned (e.g., shares owned and whether
voting or non-voting).

2\. Please provide a brief statement of the general effect of each
voting agreement, voting trust or other arrangement whereby the voting
rights of any interest in the Applicant are controlled or exercised by
any person who is not the holder of legal title to such interest.

**C. Citizenship -** If the Applicant intends that the financed
vessel(s) will be operated in the domestic trades of the United States,
the Applicant shall submit, as Attachment I to this application, an
affidavit of U.S. citizenship for the shipowner and any bareboat
charterer of the vessel(s) to the extent required by 46 CFR Part 355. A
copy of the prescribed form of corporate affidavit is set out as
Attachment I. Non-corporate entities may contact MARAD for a copy of the
appropriate prescribed form of affidavit.

**II. THE APPLICANT: Background**

**A.** **Business Activities -** Please provide a brief description of
the Applicant\'s principal business activities during the past 5 years.

**B.** **Affiliated Entities-** Please list all business entities that
directly or indirectly through one or more intermediaries, control, are
controlled by or are under common control with the Applicant. Please
indicate the nature of the business transacted by each entity and the
relationship between these entities. This information may be presented
in the form of a chart. Indicate whether any of the affiliated entities
have previously applied for or received Title XI assistance.

**C. Bankruptcy -** Please indicate whether the Applicant, any
predecessor or affiliated entity has been in bankruptcy or
reorganization under any insolvency or reorganization proceeding. If so,
please give details.

**D.** **Default -** Please provide a statement indicating whether the
Applicant or any predecessor or affiliated entity is now, or during the
past 5 years has been, in default under any agreement or undertaking
with others or with the United States of America. Is the Applicant
currently delinquent on any Federal debt? If so, please provide
explanatory information.

**E. Banking References -** Please provide the following information:

1\. Principal bank(s) or lending institution(s) - name and address

2\. Nature of relationship

3\. Individual references, name(s), telephone and fax number of banking
officer(s).

**F. Financial Information -** The Applicant shall submit as Attachment
IV the following financial statements, footnoted to explain the basis
used for arriving at the figures:

1\. The most recent financial statement of the Applicant, its parent and
other significant participants, as applicable (year end or
intermediate), and the three most recent audited statements with details
of all existing debt. If the Applicant is a new entity and is to be
funded from or guaranteed by external source(s), it shall provide the
above mentioned statements for such source(s);

2\. A pro‑forma balance sheet of the Applicant and guarantor (if
applicable) as of the estimated date of execution of the guarantees
reflecting the assumption of the Title XI obligations, including the
current liability; and

3\. Pro-forma balance sheets for five years subsequent to the Closing.

Eligible Export Vessels: the Applicant\'s financial statements shall be
in accordance with U.S. generally accepted accounting principles (GAAP)
if formed in the U.S. or reconciled to U.S. GAAP if formed in a foreign
country unless a justification is provided explaining the inability to
reconcile.

**III. THE APPLICANT: Management/Operations**

**A. Past Business Activities -** A brief description of the principal
business activities during the past 5 years of each officer, director,
partner or member listed above in item I B.1. If these persons (have)
act(ed) as executive officers in other entities, please indicate the
names of these entities and whether such entities have defaulted on any
U.S. debt.

**B. Business Relationships -** The name and address of each
organization engaged in business activities which have a direct
financial relationship to those carried on or to be carried on by the
Applicant with which any person listed above has any present business
connection, the name of each such person and, briefly, the nature of
such connection.

**C.** Please provide a copy of any management agreement(s) between the
Applicant and any related or unrelated organization(s) which will affect
the management of the Title XI project.

**D.** Please provide a detailed statement which shows the ability of
the Applicant to successfully operate the vessel(s). If a company other
than the Applicant will operate the vessel(s), then this information
shall be provided for the operating company together with a copy of the
operating agreement.

**E.** Please provide a general description of the vessels currently
owned and/or operated by the Applicant or its affiliates. This
description should also include areas of operation.

**F**. Briefly describe the general character and location of the
principal assets employed in the business of the Applicant, other than
vessels. Describe financial encumbrances, if any.

**IV. THE PROJECT**

**A. Project Description** - The Applicant shall provide a detailed
description of the project.

**B.** **Economic Soundness**

**1. Market Study** - The Applicant should provide a market review to
demonstrate the need and potential market for the project. The market
review should include market indicators (data) outlined in the attached
market study guidelines in Attachment VI. The project\'s expected
revenues and expenses should be consistent with the data presented in
the market review.

**2. Revenue** - Provide a detailed statement of the revenues expected
to be earned from the project based upon the information provided above.
The revenues should be estimated for the projected utilization rate for
the vessel(s) and at a break-even rate for the project. A justification
for the utilization rate should be supplied and should indicate the
number of days per year allowed for maintenance, drydocking, inspection,
etc.

**3. Expenses:**

a\) Provide a detailed breakdown of estimated vessel daily operating
expenses, including wages, insurance, maintenance and repair, fuel, etc.
Also provide a detailed projection of anticipated costs associated with
long term maintenance of the vessel(s) such as drydocking and major
mid-life overhauls, with a time frame for these events over the period
of the Guarantee.

b\) Provide, if applicable, a detailed breakdown of those expenses
associated with the vessel(s) voyage, such as port fees, agency fees and
canal fees that are assessed as a result of the voyage.

c\) Provide a detailed breakdown of annual capital costs and
administrative expenses, segregated as to:

1\) Interest on debt;

2\) Principal amortization; and

3\) Salaries and other administrative expenses (indicate basis of
allocation).

**4. Forecast of Operations** - Utilizing the revenues and expenses
provided above, provide a forecast of operations for the Title XI
project on a cash basis for the Applicant\'s first full year of
operations and the next four years. Please indicate what current
revenues and utilization levels are for similar vessels. The Applicant
should provide adequate backup detail to support its assumptions.

**C. Design** ‑‑ Complete Attachment II and Attachment III of this
application. In addition, please provide the name of the proposed
supervising architect and state his/her experience and qualifications.

If the vessel(s) has already been delivered, copies of the
classification and certificates should be submitted with the
application.

**D.** **Cost of the Project**‑‑The following information shall be
submitted with respect to the cost of the project.

**1. Actual Cost of Construction -** A detailed statement of the
estimated actual cost of construction, reconstruction or reconditioning
of the vessel(s) including those items which would normally be
capitalized as vessel construction costs and other items requested to be
included in Actual Cost:

Shipyard Contract Price \$

Escalation

Changes & Extras

Owner Furnished Items

Design

Engineering

Inspection

Guarantee Fee

Net Interest during Construction

Commitment Fee(s) \_\_\_\_\_\_\_\_\_\_\_\_\_\_

Total Actual Cost (excluding foreign items) \$

Foreign Equipment and Service (by category as

shown above) \_\_\_\_\_\_\_\_\_\_\_\_\_\_

Total Actual Cost (including foreign items) \$

Please provide a justification for the inclusion in Actual Cost of any
foreign equipment or services.

If any category above is inapplicable, enter zero beside that category.
Net Interest during Construction is total estimated construction period
interest on non‑equity funds less estimated earnings from the escrow
fund, if such fund is to be established.

If the project involves refinancing, Attachment V should be completed at
the time of filing the application.

**2. Contracts -** If any of the above costs have been incurred by
written contracts such as the shipyard contract, management or operating
agreement, signed copies should be forwarded with the application. If
any contracts are anticipated to be signed, provide a draft(s), and
indicate the expected date(s) of execution. The Applicant will be
required to have the contracting shipyard submit back‑up cost details
and technical data.

**3. Other Costs -** Provide a detailed statement showing the cost of
any shore facilities, cargo containers, etc., and items not listed in IV
D1 above proposed to be purchased in conjunction with the project. In
addition, please include a detailed statement showing any other costs
associated with the project not previously included, such as legal and
accounting fees, printing costs, vessel insurance, underwriting fees,
incentive payments, etc. A statement as to how these other costs are to
be paid should be provided.

**E. Financing:**

1\. Describe, in detail, how and when funds are to be provided to
cover 1) the vessel(s) equity (the difference between the capitalizable
cost and the Guarantee amount); 2) the required working capital; and 3)
initial operating expenses. If any other person or entity is providing
funding to the Applicant to assist in the financing of the project,
please provide complete details about this funding.

2\. Please provide a detailed statement with respect to the types and
value of assets (in addition to the vessel(s) being financed), including
any corporate guarantees, being offered by the Applicant to
collateralize the Secretary\'s issuance of the Guarantee.

3\. What type of debt amortization is proposed? If other than level
principal, please provide a justification.

**F. Eligible Export Vessel(s):**

1**.** Provide a detailed assessment with respect to the following:

a\) Political Risk

b\) Expropriation Risk

c\) Currency Inconvertibility Risk

Appropriate insurance or corporate guarantee may be required by the
Secretary with respect to each of the aforementioned risks.

2\. Admiralty law:

a\) What is the country of registry and under what flag will the
vessel(s) operate?

b\) If the vessel(s) is to be operated on a regular service, please
identify the ports of call.

c\) Do the countries named in a) and b) above have admiralty
jurisdiction and would the vessel(s) be subject to such jurisdiction?

3\. Where are the principal business locations for the applicant and the
operator, if any. Information may be required to be provided with
respect to whether those countries\' laws which govern secured
transactions and bankruptcy laws are equivalent to U.S. laws.

**G. Environmental Impact -** Are any international, Federal, State,
Tribal, or local approvals, permits or certificates required pursuant to
any law, rule, regulation or ordinance related to the environment? If
so, provide copies of all such approvals, permits or certificates, or
applications for same, that encompass the project. Please identify any
environmental study or assessment that has been performed.

**PART III ‑‑ CONSTRUCTION PERIOD FINANCING**

If the application involves construction period financing (e.g.,
issuance of the guarantee to aid in the pre-delivery construction of the
vessel(s)), the following information is to be supplied:

> 1\. Has the shipyard(s) obtained a performance bond or insurance? If
> so, this performance bond or insurance documentation should be
> submitted**.**
>
> 2\. If the shipyard has not obtained a performance bond or insurance,
> identify any consideration that is to be given in lieu thereof (i.e.,
> a guarantee by the shipyard\'s parent). If a guarantee of the
> shipyard\'s performance is to be executed or the shipyard is believed
> to have sufficient financial resources and operational capacity, the
> most recent audited financial statements of the appropriate party
> should be submitted.
>
> 3\. Provide a detailed draw-down schedule for the escrow fund with
> dates and amounts.

**PART IV ‑‑ REFINANCING**

Title XI Guarantees may be issued for the purpose of refinancing
existing indebtedness relating to the vessel(s) so long as the debt was
incurred for one of the purposes eligible for Title XI financing and was
placed within one year of vessel delivery. The amount of the refinanced
debt will be limited to the lesser of (1) 75 percent or 87 2 percent, as
applicable, of the depreciated actual cost of the vessel(s), or (2) the
existing indebtedness relating to the vessel(s). If the project involves
refinancing, in whole or part, the following additional information is
to be submitted.

> 1\. Amount of existing debt;
>
> 2\. Date debt incurred and original amount of debt;
>
> 3\. Repayment schedule as to principal and interest;
>
> 4\. Amount repaid to date;
>
> 5\. Executed copy of the loan agreement; and
>
> 6\. Information on the vessel\'s depreciated actual cost, including
> information on when the vessel was built, and its original cost of
> construction.

**PART V\--RECONSTRUCTION OR RECONDITIONING**

> If the project involves reconstruction or reconditioning of an
> existing vessel(s), in whole or part, the following additional
> information is to be submitted. Financing available under this part
> must involve substantial modification such as enlarging the vessel(s),
> converting to a different mode of cargo transport, etc. Repair,
> reconditioning or reconstruction which is required to meet the current
> regulatory body or classification society requirement is not allowed.
>
> 1\. State the nature of the reconstruction or reconditioning and
> describe how it will increase the economic life and/or economic
> utility of the vessel(s).
>
> 2\. Estimated economic life of the vessel(s) before and after the
> reconstruction or reconditioning.
>
> 3\. Date and place the vessel(s) was originally built, including name
> of the shipyard.
>
> 4\. Original cost of construction (or acquisition cost if Applicant is
> not the original owner).
>
> 5\. Repair items, if any, should be shown as a separate item of cost
> and stated separately in the contract or specifications.
>
> 6\. Amounts of any existing mortgages or security interests in the
> vessel(s) (also specify the holder(s) of such interests) and proposed
> method by which any such encumbrances will be released at the time of
> the execution of the Guarantees.

**ATTACHMENTS**

> Please complete the following attachment forms as requested and file
> them with the application. There is no form for Attachment IV,
> Financial Information, which shall be furnished by the Applicant.

**Attachment I‑‑** Affidavit of Citizenship

**Attachment II**‑‑Table of vessel characteristics

> **Attachment III**‑‑Preliminary vessel design information (to be
> attached to the three executed copies of the application)

**Attachment IV\--** Financial Information*.* For a complete description
of requirements, see Part II F.

**Attachment V**‑‑ Request for Actual Cost Approval and Reimbursement.

**Attachment VI -** Market Study Guidelines for Title XI Projects

**Attachment VII -** A completed Lobbying Form must accompany the
application and this form must be updated as events occur.

**NOTE:**

1\) For all requested information that is not being supplied at the time
of application filing, indicate when these materials are to be supplied
and the reason for not supplying them with the application.

2\) For Applicants with an existing Title XI contract(s), certain
information requested in this application may already be on file with
MARAD and need not be re-submitted if the information is current. For
any such information, please advise and also note when the information
was submitted.

3\) MARAD reserves the right to request additional information on any
aspect of the project.

Dated 19

(*Name of Applicant)*

By

(*Name and Title)*

Attest:

Secretary

I, , do certify that

I am the of

*Title) (Name of Applicant)*

the Applicant on whose behalf I have executed the foregoing application;
this application is made for the purpose of inducing the United States
of America to grant guarantees pursuant to the provisions of Title XI of
the Merchant Marine Act, 1936, as amended. I have carefully examined the
application and all documents submitted in connection therewith and, to
the best of my knowledge, information and belief, the statements and
representations contained in said application and related documents are
full, complete, accurate and true.

(*Name)*

**NOTE:** The U.S. Criminal Code makes it a criminal offense for any
person to knowingly make a false statement or representation or to
conceal or cover up a material fact from any department or agency of the
United States as to any matter within its jurisdiction (18 U.S.C. 1001).

**Form Approved**

**OMB 2133-0018**

**Public reporting burden of this collection of information is estimated
to average 70 hours per response. Send comments regarding this burden
estimate any other aspect of this information collection to the Maritime
Administration, Office of Management and Information Services, 400
Seventh St., S.W., MAR-318, Room 7301, Washington, D.C. 20590.**

**Attachment I**

**AFFIDAVIT OF U.S. CITIZENSHIP**

State of County of SS:

**46 CFR Ch. II (10-96 Edition**)

I, , (Name) of , (Residence address) being duly sworn, depose and say:

1\. That I am the (Title of office(s) held) of , (Name of corporation) a
corporation organized and existing under the laws of the State of
(hereinafter called the \"Corporation\" ), with offices at , (Business
address) in evidence of which incorporation a certified copy of the
Articles or Certificate of Incorporation (or Association) is filed
herewith (or has been filed) together with a certified copy of the
corporate Bylaws. \[Evidence of continuing U.S. citizenship status,
including amendments to said Articles or Certificate and Bylaws, should
be filed within 30 days after the annual meeting of the stockholders or
annually, within 30 days after the original affidavit if there has been
no meeting of the stock holders prior to that time.\];

2\. That I am authorized by and in behalf of the Corporation to execute
and deliver this Affidavit of U.S. Citizenship;

3\. That the names of the President or other Chief Executive Officer,
Vice Presidents or other individuals who are authorized to act in the
absence or disability of the President or other Chief Executive Officer,
the Chairman of the Board of Directors, and the Directors of the
Corporation are as follows:

***Name Title Date and place of birth***

(The foregoing list should include the officers, whether or not they are
also directors and all directors, whether or not they are also
officers.)

and that each of said individuals is a citizen of the United States by
virtue of birth in the United States, birth abroad of U.S. citizen
parents, by naturalization, by naturalization during minority through
the naturalization of a parent, by marriage (if a woman) to a U S.
citizen prior to September 22,1922, or as otherwise authorized by law,
except (give name and nationality of alien directors, if any); however,
the Bylaws of the Corporation provide that (Number) of the directors are
necessary to constitute a quorum; therefore, the alien directors named
represent no more than a minority of the number necessary to constitute
a quorum. \[In the case of corporations under title VI, Merchant Marine
Act, 1936, as amended, all directors must be citizens of the United
States. Further, obtaining evidence necessary to support this Affidavit
of U.S. Citizenship is the responsibility of the affiant.\];

4\. Information as to stock, where Corporation has 30 or more
stockholders:[^1]

That I have access to the stock books and records of the Corporation;
that said stock books and records have been examined and disclose (a)
that, as of , (Date) the Corporation had issued and outstanding (Number)
shares of , (Class or series) the only class or series of stock of the
Corporation issued and outstanding \[if such is the case\], owned of
record by (Number) stockholders, said number of stockholders
representing the ownership of the entire issued and outstanding stock of
the Corporation, and (b) that no stockholder owned of record as of said
date five per centum (5%) or more of the issued and outstanding stock of
the Corporation of any class or series. \[If different classes or series
of stock exist, give the same data for each class or series issued and
outstanding, showing the monetary value and voting rights per share in
each class or series. If there is an exception to the statement in
clause (b), the name, address, and citizenship of the stockholder and
the amount and class or series of stock owned should be stated.\]

That the registered addresses of owners of record of shares of the
issued and outstanding (Class or series) stock of the Corporation are
shown on the stock books and records of the Corporation as being within
the United States, said shares being per centum ( %) of the total number
of shares of said stock (each class or series). \[The exact figure as
disclosed by the stock books of the corporation must be given and the
per centum figure must not be less than 65 per centum, except that for a
corporation operating a vessel in the coastwise trade, the per centum
figure must be not less than 95 per centum. These per centum figures
apply to corporate stockholders as well as to the primary corporation.\]

(The same statement should be made with reference to each class or
series of stock, if there is more than one class or series.)

4\. Information as to stock, where Corporation has less than 30
stockholders:[^2]

That the information as to stock ownership, upon which the Corporation
relies to establish that the required percentage[^3] of stock ownership
is vested in citizens of the United States, is as follows:

***Number of shares*** ***Percentage of***

***Name of stock- owned (each class shares owned***

***holder or series) (each class or series)***

and that each of said individual stockholders is a citizen of the United
States by virtue of birth in the United States, birth abroad of U.S.
citizen parents, by naturalization during minority through the
naturalization of a parent, by marriage (if a woman) to a U.S. citizen
prior to September 22, 1922, or as otherwise authorized by law.

NOTE: If a corporate stockholder, give information with respect to State
of incorporation, the names of the officers, directors, and stockholders
in the appropriate percentage of shares held, with statement that they
are all U.S. citizens. Nominee holders of record of 5 percent or more of
any class or series of stock and the beneficial owners thereof should be
named and their U.S. citizenship affirmed.

5\. That the controlling interest (or 75% of the interest)[^4] in (each)
said Corporation, as established by the data herein before set forth, is
owned by citizens of the United States; that the title to a majority (or
75%)[^5] of the stock of (each) said Corporation is vested in citizens
of the United States free from any trust or fiduciary obligation in
favor of any person not a citizen of the United States; that such
proportion of the voting power of (each) said Corporation is vested in
citizens of the United States; that through no contract or understanding
is it so arranged that the majority (or more than 25%)[^6] of the voting
power of (each) said Corporation may be exercised, directly or
indirectly, in behalf of any person who is not a citizen of the United
States; and that by no means whatsoever, is control of (each) said
Corporation (or any interest in said Corporation in excess of 25%)[^7]
conferred upon or permitted to be exercised by any person who is not a
citizen of the United States; and

6\. That affiant has carefully examined this affidavit and asserts that
all of the statements and representations contained therein are true to
the best of his knowledge, information, and belief.

> Dated: (Name of affiant)

Subscribed and sworn to before me, a Notary Public in and for the State
and County aforesaid, this day of 19 .

(Notary Public)

My Commission expires:

**Attachment II**

**TABLE OF VESSEL CHARACTERISTICS FOR PROPOSED VESSEL(S)**

> Including:
>
> 1\. Length overall
>
> 2\. Length between perpendiculars
>
> 3\. Beam
>
> 4\. Full load draft
>
> 5\. Depth to strength deck
>
> 6\. Full load displacement
>
> 7\. Service speed at full load displacement
>
> 8\. Number of passengers by classes
>
> 9\. Approximate number of staterooms for each class
>
> 10\. Number of crew:
>
> a\. Deck Department
>
> b\. Engine Department
>
> c\. Steward\'s Department
>
> 11\. Dry cargo volume‑‑bale cubic and/or grain cubic and/or TEU
>
> 12\. Dry cargo deadweight
>
> 13\. Refrigerated cargo cubic and/or TEU
>
> 14\. Refrigerated cargo deadweight
>
> 15\. Cargo oil cubic 100**%** full
>
> 16\. Cargo oil deadweight
>
> 17\. Fuel oil tankage cubic 100% full
>
> 18\. Fresh water tankage cubic 100% full
>
> 19\. Number of propellers
>
> 20\. Type of main propulsion machinery.
>
> 21\. Rated horsepower of main propulsion machinery (MCR)
>
> 22\. Estimated fuel consumption in service at sea and in port
>
> 23\. Evaporator capacity
>
> 24\. Auxiliary generator capacity
>
> 25\. Cruising radius at service speed at full displacement
>
> 26\. Estimated net tonnage
>
> 27\. Estimated gross tonnage
>
> 28\. Estimated total deadweight capacity
>
> 29\. Light ship weights
>
> a\. steel
>
> b\. outfit
>
> c\. machinery

**Attachment III**

VESSEL DESIGN INFORMATION

*(Three (3) copies required)*

*The requirement for submission of the information outlined in
Attachment III may be waived, at MARAD\'s discretion,* for those
projects which have a design previously approved by MARAD.

1\. **[SPECIFICATIONS]{.underline}**: *Specifications shall cover all
shipyard contract work to be accomplished. They shall identify
classification society rules to be used, national and international
regulations to be applied and primary vessel certifications to be
obtained. They shall also address pollution considerations such as
engine emissions, sewage processing, refrigerants and fire fighting
systems.*

2\. **[GENERAL ARRANGEMENT DRAWINGS]{.underline}**: *Drawings shall
include the inboard profile and plan view of the decks with a table of
principal vessel characteristics.*

3\. **[MIDSHIP SECTION STRUCTURAL DRAWING]{.underline}**: *Drawing shall
be consistent with classification society and/or regulatory body
requirements.*

4\. **[MAJOR LONGITUDINAL AND TRANSVERSE STRUCTURAL
DRAWINGS]{.underline}**: *Drawing shall be consistent with
classification society and/or regulatory body requirements.*

5\. **[LONGITUDINAL HULL GIRDER STRENGTH ANALYSIS]{.underline}**:
*Analysis shall be consistent with classification society and/or
regulatory body requirements.*

6\. **[MACHINERY ARRANGEMENT DRAWINGS]{.underline}**: *Drawings shall
have sufficient plan view(s), elevation(s) and section view(s) to show
the location of all major machinery components. A list of main machinery
components shall also be included.*

7\. **[LIGHTSHIP WEIGHT ESTIMATE]{.underline}**: *Estimate shall include
a weight breakdown in the three main weight groups: hull structure
(including deck house), hull outfitting (including joiner work) and
machinery, with a center of gravity for each main group.*

8\. **[LIGHTSHIP LONGITUDINAL WEIGHT DISTRIBUTION CURVE]{.underline}**:
*Curve should be consistent with classification society and/or
regulatory body requirements.*

9\. **[LINES DRAWINGS]{.underline}**: *Drawings shall show the body
plan, profile plan and waterline plan. Tabular offsets in hard copy and
in computer format shall also be provided.*

10\. **[SPEED/POWER CHARACTERISTICS]{.underline}**: *Include curves of
speed versus power and rpm with enough pertinent technical data for the
selection of main engine(s) and propeller(s).*

11\. **[HYDROSTATIC CHARACTERISTICS]{.underline}**: *Hydrostatic data
may be presented as curves, nomographs and/or tables.*

12\. **[LOADING CONDITION CALCULATIONS]{.underline}**: *Calculations
should be consistent with classification society and/or regulatory body
requirements and shall represent the safe loading of the ship throughout
its range of operating drafts.*

13\. **[INTACT AND DAMAGED STABILITY (if required)
ANALYSES]{.underline}**: *Analyses shall be consistent with
classification society and/or regulatory body requirements.*

14\. **[CAPACITY PLAN]{.underline}**: *Plan shall include volume,
weight, and center of gravity information for each cargo space and/or
tank. Free surface effects for all tanks shall also be included.*

15\. **[ELECTRIC LOAD ANALYSIS]{.underline}**: *Analysis should be
consistent with classification society and/or regulatory body
requirements.*

16\. **[HEAT BALANCE OR ENERGY ANALYSIS]{.underline}**: *Analysis shall
be in diagrammatic form and should be consistent with classification
society and/or regulatory body requirements.*

17\. **[KEY EVENT PRODUCTION SCHEDULE]{.underline}**: *Production
schedule which clearly demonstrates the integration of each vessel with
the shipyard\'s existing workload shall be provided, if the Title XI
application involves construction period financing.*

18\. **[VESSEL DOCUMENTATION]{.underline}**: *A copy of all
classification society and/or regulatory body documents and certificates
issued for the vessel(s).*

> **[NOTES]{.underline}**: *(1) When deemed necessary, additional
> technical information may be requested by the Maritime Administration
> and shall be provided by the Title XI Applicant.*
>
> *(2) If a preliminary Title XI application is submitted, it shall
> include, as a minimum, Items 1 and 2 of this Attachment III.*
>
> *(3) In general, all plans provided shall be drawn to an engineering
> or architectural scale and may be in a computerized format such as
> AutoCAD R.12 or later. All other technical information may also be
> submitted in a computerized format. Data compatibility requirements
> should be discussed with the Maritime Administration prior to
> submittal.*

**Attachment V**

Summary of Actual Cost Request

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Type of Vessel

LOA LBP BEAM DEPTH SHP

Submittal No.

Period Covered
From:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
to: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Final Cost
Submittal \_\_\_ Date

Date of Last Previous Submittal

**[Instructions to Applicant]{.underline}**

Requests for actual cost approvals and remittances must be submitted on
this form and on the supplemental schedules listed below as applicable.
Specific instructions are included on each supplemental schedule.

+---------------------+--------+----------+-------------+-------------+
| Remittances to      | Supple | Previous | Actual Cost | Cumulative  |
| Shipyard            | mental |          |             |             |
|                     |        | Cu       | This        | Actual Cost |
|                     | Sc     | mulative |             |             |
|                     | hedule |          | Submittal   | To Date     |
|                     | No.    | Total    |             |             |
+---------------------+--------+----------+-------------+-------------+
| Contract Base Cost  | 1      |          |             |             |
|                     |        |          |             |             |
| Escalation          |        |          |             |             |
|                     |        |          |             |             |
| Changes & Extras    |        |          |             |             |
|                     |        |          |             |             |
| Other Items         |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     | 1      |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     | 2 & 2A |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     | 3      |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| 1\. Subtotal-Actual |        |          |             |             |
| Construction Cost   |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| Owner Furnished     | 4      |          |             |             |
| Items               |        |          |             |             |
|                     |        |          |             |             |
| Design, Engineering |        |          |             |             |
| and Inspection      |        |          |             |             |
|                     |        |          |             |             |
| At Owner\'s Cost    |        |          |             |             |
|                     |        |          |             |             |
| 2\. Subtotal-Actual |        |          |             |             |
| Owner\'s Cost       |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     | 5      |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| **Total (1 & 2)     |        |          |             |             |
| Actual              |        |          |             |             |
| Construction**      |        |          |             |             |
|                     |        |          |             |             |
| **& Outfitting      |        |          |             |             |
| Cost:**             |        |          |             |             |
|                     |        |          |             |             |
| Less: Items of      |        |          |             |             |
| Foreign Cost Not    |        |          |             |             |
| Allowed             |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     | 6      |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| 3\.                 |        |          |             |             |
| Subtotal\--Actual   |        |          |             |             |
| Construction and    |        |          |             |             |
|                     |        |          |             |             |
| Owner\'s Outfitting |        |          |             |             |
| Cost                |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| [Financing          | 7      |          |             |             |
| Costs:]{.underline} |        |          |             |             |
|                     |        |          |             |             |
| Guarantee           |        |          |             |             |
| Fee/Commitment Fees |        |          |             |             |
|                     |        |          |             |             |
| Interest Expense    |        |          |             |             |
|                     |        |          |             |             |
| Interest Income     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| 4\.                 |        |          |             |             |
| S                   |        |          |             |             |
| ubtotal\--Financing |        |          |             |             |
| Costs               |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| **Total\--Actual    |        |          |             |             |
| Cost**              |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| 5\. Source of       |        |          |             |             |
| Payments            |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
| Escrow Fund         |        |          |             |             |
|                     |        |          |             |             |
| Construction Fund   |        |          |             |             |
|                     |        |          |             |             |
| General Fund        |        |          |             |             |
|                     |        |          |             |             |
| **TOTAL**           |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+
|                     |        |          |             |             |
+---------------------+--------+----------+-------------+-------------+

Notes, Comments, Etc.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**CERTIFICATION OF PAYMENTS**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**The undersigned has examined the records
of\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_and
certifies the above cost figures**

**and the attached supplemental schedules to accurately state the actual
costs, both paid and to be paid,
of\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**in accordance with generally accepted accounting practices.**

> **Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Title\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 1**

***[Contract Base Cost and Escalation]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

List all remittances made to the shipyard for the construction of the
vessel as shown in the contract specifications. Include escalation, if
applicable, as defined in the contract. Do not include the cost of
subsequent amendments to the contract or changes and extras which are to
be listed on Schedules 2 and 2A.

**Date of Contract**

**Payment Notes or Comments *(if required)* Base Cost Escalation Total**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 2**

***[Index of Changes and Extras]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

List all changes and extras in numerical order as indicated below. Fill
in all information requested. Show total cost claimed at the end of the
list. Attach Schedule 2A with information requested arranged in the same
sequence.

If preferred, the Applicant may request the shipyard to forward this
schedule and Schedule 2A directly to Chief, Division of Cost Analysis
and Production, Maritime Administration, Code MAR-725, Room 8311, 400
Seventh Street, S.W., Washington, D.C. 20590.

**Change No. Description or Identification Subcontractor (if applic.)
Cost per Ship**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**ATTACHMENT V** - **Supporting Documentation**

**Supplemental Schedule No. 2A**

***[Changes and Extras Details]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

[Instructions to Applicant]{.underline}

Enter below the details requested for each change order in the same
sequence as listed in Schedule 2. The scope of work for each change
should be briefly described. Major items of material and/or labor should
be set forth individually‑‑whether added or deleted. Sufficient detail
should be included to justify the cost added or deleted for each change.
Include as many changes as possible on each sheet.

**Title of Change/Scope of Net Cost**

**Change Work by Phases/Material Material Cost Labor of Change**

**No. Description/Labor Description Unit Total Hours Cost (+) or (-)**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 3**

***[Other Items]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

List below all items paid directly to the shipyard which qualify as
construction cost, but do not belong in the categories of base contract
cost, changes, extras, and escalation. Example: insurance, storage of
owner furnished items, performance bond; if such items are not provided
for in construction contract.

**Item No. Description Cost**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 4**

***[Owner Furnished Items]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

List below all owner furnished materials, equipment and services where
the total cost per invoice exceeds \$2,500. At the end of the list
include all invoices costing less than \$2,500 in a lump sum opposite
the description \"Miscellaneous Owner Items.\" Description of individual
items listed should include quantity, material specification, model No.,
horsepower, capacity, etc., as applicable, to allow review for
reasonability of cost and eligibility as Title XI actual cost. Invoices
containing the above information may be submitted in lieu of filling
this form out provided a summary of all such invoices is provided with
each submittal.

Item Description or Manufacturer\'s Name\* Vendor\'s Cost per

No. Quantity Identification City and Country Invoice No. Shipset

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\*If the item is not manufactured, show the name of the company actually
furnishing the goods or services. Do not list brokers, jobbers,
distributors, or representatives.

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 5**

***[Design, Inspection and Engineering at Owner\'s Cost]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

List below expenditures paid by the Applicant for design, inspection and
engineering in sufficient detail to permit review for Title XI
eligibility and reasonability of cost.

**Names of Applicant\'s Employees and/or Invoice No.**

**Item Names of Subcontractors No. or**

**No. Nature of Work Performed Hours Rate/Hour Cost**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 6**

***[Items of Foreign Manufacture, Growth or Origin]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

Under Maritime Administration policy all items of foreign manufacture,
growth or origin are ineligible as Title XI actual cost. It is the
responsibility of the Applicant to furnish the information listed below
for each such item. This includes both goods and services. The total
cost of the items listed will be deducted from the total actual cost
eligible for Title XI Guarantee unless a waiver has been requested by
letter from MARAD and granted by MARAD by letter.

**Item Description or Vendor\'s Name Vendor\'s Cost per**

**No. Quantity Identification City and Country Invoice No. Ship**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**ATTACHMENT V - Supporting Documentation**

**Supplemental Schedule No. 7**

***[Interest, Commitment Fees and Guarantee Fee]{.underline}***

Applicant\'s Name

Applicant\'s Address

Shipyard\'s Name

Shipyard\'s Address

Name of Vessel Shipyard Hull No.

Submittal No. Date

**[Instructions to Applicant]{.underline}**

Fill out the information requested below concerning the interest and
commitment fees for which you are requesting reimbursement in this
submittal.

**Period Check Which Principal Interest Amount**

**Covered Int. Fee Paid To Amount Rate Paid**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Attachment VI**

Preamble, Market Study Guidelines

A portion of the information required by Section IV B of the application
relates to the overall market in which the vessels will operate and the
applicant\'s performance in that market. In order to assist the
applicant in providing the most relevant information we have prepared
the attached market study guidelines which should form the basis for
your response. If you believe specific information items are not
relevant to your project, please contact the Maritime Administration to
discuss the data required to support your application.

Market Study Guidelines for Title XI Projects

I. Existing Markets and Services:

> \- Information can be provided by applicant or independent market
> consultant.
>
> \- Clear definition of market (e.g. U.S. domestic product tanker
> trades) as perceived by the applicant.
>
> \> Geographic scope.
>
> \> List of major companies (addresses, if known) serving the market
> and market shares (shares can be measured in terms of traffic or
> capacity).
>
> \- Measures of traffic (overall/applicant\'s share)
>
> \> Time series for last five years (explain any anomalies that
> occurred in last five years).
>
> \> Annual, or higher frequency if traffic is seasonal.
>
> \> Weight or volume measures, e.g., number of passengers/tons carried.
>
> \> Estimates for next five years.
>
> \> Applicant\'s market share (historical and projected).
>
> \- Measures of supply (capacity) (overall fleet/applicant\'s fleet)
>
> \> Existing fleet (Describe specifically the types of ships included
> in the fleet profile).
>
> \> Number of ships
>
> \> Cargo capacity (passenger berths, DWT, cargo capacity (short tons,
> bbls.).
>
> \> Fleet trends, in size, vessel types, speed, fuel consumption, crew
> size, other technological improvements.
>
> \> Age profile of existing fleet.
>
> \> Orderbook
>
> \> Same measures as existing fleet.
>
> \> Recent scrapping rates, average scrapping age.
>
> \> Regulatory impacts (if any).
>
> \- Measures of Demand, Fleet Employment (overall/applicant\'s)
>
> \> Time series for last five years (explain any anomalies that
> occurred in last five years), defining employment and capacity
> utilization as used in the data.
>
> \> Measured by number of ships/shipping capacity employed.
>
> \> Annual or higher frequency if employment is seasonal.
>
> \> Estimates for next five years.
>
> \- Rates (overall/applicant\'s)
>
> \> Time series, last five years (explain any anomalies that occurred
> in last five years), next five years (estimates).
>
> \> Annual or higher frequency if traffic is seasonal.
>
> \> Time charter rates (preferred), per diems/fares for passenger
> service, freight (voyage rates). Time charter equivalent rates are
> optional and must include a complete set of employment assumptions
> underlying estimates.
>
> \> Estimates for next five years.
>
> \- Pro Forma Estimates
>
> \> Breakeven time charter/freight rates/fares for the proposed
> equipment with cost components identified, e.g., capital costs,
> operating costs, voyage costs (fuel/port) under various utilization
> assumptions.

Information provided in market studies should be fully documented:
footnotes, sources, and references.

If any of the preceding industry data items are unavailable, applicant
should provide proxies, e.g., survey data, employment contracts,
charters. Applicant should clearly describe the proxies.

II\. New Market with no established service:

> \- Applicant should clearly define the potential market.
>
> \- Applicant should have an independent market survey done by a
> reputable firm to estimate the size of the potential market. Applicant
> should provide background information on the firm conducting the
> survey, the focus group, service attributes, development of the
> questionnaire (include questionnaire), and the survey population and
> sample selection process.
>
> \> The survey should generate estimates for the following:

\> Traffic

> \> Diverted from other competitive modes v. new demand
>
> \> Seasonality
>
> \> Required capacity
>
> \> Service frequency
>
> \> Prices/rates customers would pay, and
>
> \> The survey report should contain a critical evaluation of the
> project (positive/negative aspects)
>
> \> It should also contain recommendations as to changes to project
> based on survey results.
>
> \- Pro Forma Estimates
>
> \> Breakeven time charter/freight rates/fares for the proposed
> equipment with cost components identified, e.g., capital costs,
> operating costs, voyage costs (fuel/port) under various utilization
> assumptions.
>
> \- Market surveys indicate [latent]{.underline} market potential. The
> applicant should therefore submit its proposed merchandising,
> advertising and promotional plan which clearly describes how it
> expects to achieve traffic/utilization/rate levels necessary for
> profitable results.

III\. Established market with new type of service or vessel.

> \- Applicant should provide items listed for established market and a
> survey to demonstrate demand for the new type of service or vessel.

**Attachment VII**

**DECLARATION REGARDING LOBBYING**

I, , do hereby declare under penalty of perjury, in accordance with the
provisions of 28 United States Code 1746, that the following statements
are true and correct to the best of my knowledge:

1\. I am the Chief Executive Officer of , an applicant (the
\"Applicant\") for a loan guarantee pursuant to Title XI of the Merchant
Marine Act, 1936, and this Declaration is hereby submitted in compliance
with the provisions of 31 U.S.C. 1352, as amended by the Lobbying
Disclosure Act of 1995, Pub. L. 104-65, December 19, 1995 (the
\"Lobbying Act\").

2\. The submission of the information set forth herein has been duly
authorized and approved in the manner required by the Applicant\'s
Articles of Incorporation and its By-Laws.

3\. There immediately follows a list of any lobbyists who have an
obligation to register under the Lobbying Act and who have made lobbying
contacts on behalf of the Applicant in connection with the requested
loan guarantee:

[\_]{.underline}

4\. The Applicant will file a further declaration in the form of this
Declaration at the end of each calendar quarter in which there occurs
any event that materially affects the accuracy of the information
contained in this Declaration.

5\. The terms \"lobbyist\" and \"lobbying contacts\" used herein have
the meanings given to them by the Lobbying Act.

**DATED:**

**Name:**

**Title:**

[^1]:
    > Strike inapplicable paragraph 4.

[^2]:
    > 1

[^3]:
    > 275% if Corporation is operating in the coastwise trade, on the
    > Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes
    > of the United States; and controlling interest if Corporation is
    > operating solely in the foreign trade, both terms as defined in
    > section 2, Shipping Act, 1916, as amended.

[^4]:
    > 3Strike inappropriate language.

[^5]:
    > 3

[^6]:
    > 3

[^7]:
    > 3