Exhibit 10.1

SECOND AMENDMENT TO
THIRD AMENDED AND RESTATED CREDIT AGREEMENT

          THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
(this “Amendment”), dated as of April 25, 2007 (the “Effective Date”), is
entered into by and among U.S. SHIPPING PARTNERS L.P., a Delaware limited
partnership (the “MLP”), U.S. SHIPPING OPERATING LLC, a Delaware limited
liability company (“Operating LLC”), ITB BALTIMORE LLC, a Delaware limited
liability company, ITB GROTON LLC, a Delaware limited liability company, ITB
JACKSONVILLE LLC, a Delaware limited liability company, ITB MOBILE LLC, a
Delaware limited liability company, ITB NEW YORK LLC, a Delaware limited
liability company, ITB PHILADELPHIA LLC, a Delaware limited liability company,
USS CHARTERING LLC, a Delaware limited liability company (“Charter LLC”), USCS
CHEMICAL CHARTERING LLC, a Delaware limited liability company (“Chemical
Chartering”), USCS CHEMICAL PIONEER INC., a Delaware corporation (“Chemical
Pioneer”), USCS CHARLESTON LLC, a Delaware limited liability company
(“Charleston”), USCS CHARLESTON CHARTERING LLC, a Delaware limited liability
company (“USCS Chartering”), USCS ATB LLC, a Delaware limited liability company
(“ATB LLC”), USS ATB 1 LLC, a Delaware limited liability company (“ATB1 LLC”),
USS ATB 2 LLC, a Delaware limited liability company (“ATB2 LLC”), USCS SEA
VENTURE LLC, a Delaware limited liability company (“Sea Venture LLC”), USS M/V
HOUSTON LLC, a Delaware limited liability company (“Houston LLC”), U.S. SHIPPING
FINANCE CORP., a Delaware corporation (“Finance Corp.”), USS JV MANAGER INC., a
Delaware corporation (“JV Manager”), USS PC HOLDING CORP., a Delaware
corporation (“PC Holding”) and USS PRODUCT MANAGER LLC, a Delaware limited
liability company (“Product Manager”) (each of the foregoing being individually
called a “Borrower” and collectively, the “Borrowers”), the various financial
institutions as are or may become parties to the Credit Agreement as hereinafter
defined (collectively, the “Lenders”), CANADIAN IMPERIAL BANK OF COMMERCE, as
Letter of Credit Issuer, CANADIAN IMPERIAL BANK OF COMMERCE (“CIBC”), as
administrative agent (in such capacity together with its successors in such
capacity, the “Administrative Agent”) for the Lenders, LEHMAN COMMERCIAL PAPER
INC., as the syndication agent (in such capacity together with its successors in
such capacity, the “Syndication Agent”) for the Lenders, and KEYBANK NATIONAL
ASSOCIATION, as collateral agent (in such capacity, together with its successors
in such capacity, the “Collateral Agent”) for the Secured Parties (as defined in
the Credit Agreement hereinafter defined).

W I T N E S S E T H:

          WHEREAS, the Borrowers, the Lenders, the Letter of Credit Issuer, the
Administrative Agent, the Syndication Agent and the Collateral Agent have
entered into that certain Third Amended and Restated Credit Agreement dated as
of August 7, 2006 as amended by the First Amendment to Third Amended and
Restated Credit Agreement dated as of August 28, 2006 (as so amended and further
amended or otherwise modified, the “Credit Agreement”);

          WHEREAS, the Borrowers, the Lenders, the Letter of Credit Issuer, the
Administrative Agent, the Syndication Agent and the Collateral Agent intend to
amend certain provisions of the Credit Agreement as set forth herein.

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Second Amendment to Third Amended and Restated Credit Agreement

          NOW THEREFORE, in consideration of the foregoing and the mutual
agreements set forth herein, the parties hereto agree as follows:

          SECTION 1.          Definitions.  Unless otherwise defined in this
Amendment, each capitalized term used in this Amendment has the meaning assigned
to such term in the Credit Agreement.

          SECTION 2.          Amendment of Section 1.1.  Section 1.1 of the
Credit Agreement is hereby amended

 

          (a)     by inserting the text “, as such letter agreement may be
amended, supplemented or otherwise modified from time to time by the parties
thereto and in compliance with Section 7.2.12” immediately before the period in
the text for each of the definitions “Option Cancellation Option Letter” and
“Option Letter”; and

 

 

 

          (b)     by inserting the following new definition immediately after
the definition “Option Cancellation Option Letter”:

 

 

 

          “Option Expiry Date” means May 1, 2007 or such later date as is the
date that is the earlier of (a) that certain date specified in the Option
Cancellation Option Letter as the last day upon which USS ATB 1 LLC can cancel
its already-exercised option with respect to the construction by Bay
Shipbuilding Co. of a fourth barge and (b) that certain date specified in the
Option Letter as the last day upon which the MLP can exercise its right to
contract for Eastern Shipbuilding Group, Inc. to construct a fourth pusher tug
identified as “Hull No. 934” in the Option Letter.”

          SECTION 3.          Amendment of Section 3.1 of the Credit Agreement. 
Section 3.1 of the Credit Agreement is hereby amended by deleting the text of
clause (k) thereof and replacing it in its entirety with the following:

 

          “(k)     shall, on the first Quarterly Payment Date occurring after
the early termination or cancellation of any New ATB Construction Contract for
any reason (other than with respect to the cancellation of the already-exercised
option for the construction of one barge as required by Section 7.1.14) or
performance default by the relevant ATB Contractor make a mandatory prepayment
of the Term Loans in an amount equal to 100% of the Individual New ATB Escrow
Amount applicable for such New ATB Construction Contract or the Option Letter;
and”.

          SECTION 4.          Amendment of Section 7.1.14 of the Credit
Agreement.  Section 7.1.14 of the Credit Agreement is hereby amended by deleting
the text thereof and replacing it in its entirety with the following: 

 

          “SECTION 7.1.14     Limitations on a Fourth New ATB.  The Borrowers
will, and will cause each Restricted Subsidiary to, (a) exercise their rights,
on or before the Option Expiry Date, under the Option Cancellation Option Letter
to cancel the already-exercised option for the construction of “Vessel No. 4”
identified therein and (b) refrain from exercising any option granted under the
Option Letter to construct the pusher tug identified therein as “Hull No. 934”;
provided however, that if (i) on or before the date

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Second Amendment to Third Amended and Restated Credit Agreement

 

that is forty-five (45) days prior to the Option Expiry Date, the Borrowers
submit updated Projections, which shall incorporate a financing plan, to the
Administrative Agent reflecting the contemplated construction of a total of four
New ATBs and such updated Projections are approved by the Majority Lenders in
their discretion on or before the date that is fifteen (15) days prior to the
Option Expiry Date, or (ii) prior to the Option Expiry Date, the Loan Parties
execute an agreement, on terms and conditions reasonably satisfactory to the
Administrative Agent, for the Disposition of the ATB and the concurrent
execution of a long-term charter or lease of the ATB following such Disposition,
all in compliance with Section 7.2.11, then the Borrowers and their Restricted
Subsidiaries shall not be required to cancel the already-exercised option to
construct the barge referred to as “Vessel No. 4” in the Option Cancellation
Option Letter and shall also be permitted to exercise the option which expires
on the Option Expiry Date for the construction of the pusher tug identified as
“Hull No. 934” in the Option Letter, such that the Loan Parties would have a
total of four, but no more than four, New ATBs under contract for construction. 
Notwithstanding the foregoing clauses (a) and (b), the Borrowers shall be
permitted to assign or otherwise Dispose of any or all of the contracts for the
construction of a fourth New ATB as long as the aggregate amount of all
expenditures made on/or in connection with such fourth New ATB as of such date
of Disposition, including, without limitation, option premiums, milestone
payments and the purchase of owner-furnished equipment does not exceed the
aggregate Net Proceeds received from such Disposition in an amount greater than
$5,900,000.”

          SECTION 5.          Amendment of Section 7.2.11 of the Credit
Agreement.  Section 7.2.11 of the Credit Agreement is hereby amended by
replacing the text “May 1, 2007” therein with the text “the Option Expiry Date”.

          SECTION 6.          Amendment of Section 7.2.12 of the Credit
Agreement.  Section 7.2.12 of the Credit Agreement is hereby amended by
inserting the following new sub-clause (iv) immediately at the end of the first
sentence of clause (a) thereof:  “or (iv) which extends the Option Expiry Date
under either the Option Cancellation Option Letter or the Option Letter,
provided that (A) such new Option Expiry Date is the same date in both the
Option Cancellation Option Letter and the Option Letter and (B) no additional
fees, costs or option premiums are paid to the respective ATB Contractor in
connection with such extension of the Option Expiry Date”.

          SECTION 7.          Representations and Warranties, Etc.  To induce
the Lenders to enter into this Amendment, each of the Borrowers shall have
represented and warranted to the Administrative Agent, the Letter of Credit
Issuer, the Collateral Agent, the Syndication Agent and the Lenders, and by its
execution and delivery of this Amendment such Borrower does hereby represent and
warrant to the Administrative Agent, the Letter of Credit Issuer, the Collateral
Agent, the Syndication Agent and the Lenders, that:

 

          (a)     on or prior to November 21, 2006, the Borrowers made payments
(exclusive of the modification payment of $380,000 made in July 2006 in
connection with the execution of the Option Cancellation Option Letter and the
modification payment of $120,000 made on November 21, 2006 in connection with
the amendment of the Option Cancellation Option Letter), in an amount not in
excess of $3,900,000, to the ATB Contractor with respect to the option to
construct “Vessel No. 4” (as defined in the

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Second Amendment to Third Amended and Restated Credit Agreement

 

Option Cancellation Option Letter) and if any cancellation of such
already-exercised option, as required by Section 7.1.14 of the Credit Agreement
(as amended hereunder) shall occur, then the aggregate amount of funds required
to be paid or forfeited by the Borrowers to the ATB Contractor upon such
cancellation shall not exceed $5,800,000;

 

 

 

          (b)     each of the representations and warranties by such Borrower
contained in the Credit Agreement and in the other Loan Documents are true and
correct on and as of the date hereof in all material respects as though made as
of the date hereof, except those that by their terms relate solely as to an
earlier date, in which event they shall be true and correct on and as of such
earlier date;

 

 

 

          (c)     the execution, delivery and performance of this Amendment has
been duly authorized by all requisite organizational action on the part of such
Borrower;

 

 

 

          (d)     the Credit Agreement and each other Loan Document to which it
is a party constitute valid and legally binding agreements enforceable against
such Borrower in accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or other similar laws relating to or affecting
the enforcement of creditors’ rights generally and by general principles of
equity; and

 

 

 

          (e)     no Default or Event of Default exists under the Credit
Agreement or any of the other Loan Documents.

          SECTION 8.          Ratification.  Each Borrower hereby ratifies and
confirms, as of the Effective Date, (a) the covenants and agreements contained
in each Loan Document to which it is a party, including, in each case, as such
covenants and agreements may be modified by this Amendment and the transactions
contemplated thereby and (b) all of the Obligations under the Credit Agreement
and the other Loan Documents.  This Amendment is an amendment to the Credit
Agreement, and the Credit Agreement as amended hereby, is hereby ratified,
approved and confirmed in each and every respect.

          SECTION 9.          Effectiveness.  This Amendment shall become
effective as of the Effective Date when all of the conditions set forth in this
Section 9 have been satisfied.

 

          (a)     The Administrative Agent shall have received duly executed
counterparts of this Amendment from the Borrowers, the Administrative Agent, the
Letter of Credit Issuer, the Collateral Agent, the Syndication Agent and the
Majority Lenders; and

 

 

 

          (b)     The Administrative Agent shall have received (i) all
reasonable fees, costs and expenses incurred in connection with the negotiation,
preparation, execution and delivery of this Amendment and related documents,
including all reasonable fees and disbursements of counsel to the Administrative
Agent and (ii) all other reasonable fees, costs and expenses due and payable
pursuant to Section 10.3 of the Credit Agreement, in each case under either
clause (i) or (ii) above, to the extent then invoiced.  Borrowers hereby
acknowledge and agree that the fees and expenses set forth in this Section 10(b)
shall be paid upon Borrower’s execution of this Amendment and are not refundable
for any reason.

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Second Amendment to Third Amended and Restated Credit Agreement

          SECTION 10.          Governing Law; Severability; Entire Agreement. 
THIS AMENDMENT SHALL EACH BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO ANY CONFLICTS OF
LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER
JURISDICTION).  Any provision of this Amendment or any other Loan Document which
is prohibited or unenforceable in any jurisdiction shall, as to such provision
and such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Amendment
or such Loan Document or affecting the validity or enforceability of such
provision in any other jurisdiction.  This Amendment and the other Transaction
Documents constitute the entire understanding among the parties hereto with
respect to the subject matter hereof and supersede any prior agreements, written
or oral, with respect thereto. 

          SECTION 11.          Execution in Counterparts.  This Amendment may be
executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same agreement.

          SECTION 12.          Successors and Assigns.  This Amendment shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns; provided, however, that (a) no Borrower may
assign or transfer its rights or obligations hereunder without the prior written
consent of the Administrative Agent, the Letter of Credit Issuer and all
Lenders; and (b) the rights of sale, assignment and transfer of the Lenders are
subject to Section 10.11 of the Credit Agreement. 

          SECTION 13.          Miscellaneous.  (a) On and after the
effectiveness of this Amendment, each reference in each Transaction Document to
“the Credit Agreement”, “thereunder”, “thereof” or words of like import
referring to the Credit Agreement shall mean and be a reference to the Credit
Agreement as amended or otherwise modified by this Amendment; (b) the execution,
delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any default of any Borrower or any
right, power or remedy of the Administrative Agent, the Letter of Credit Issuer,
the Syndication Agent, the Collateral Agent or the Lenders under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents; (c) this Amendment is a Loan Document executed pursuant to the Credit
Agreement and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with the terms and provisions of the
Credit Agreement; and (d) a facsimile signature of any party hereto shall be
deemed to be an original signature for purposes of this Amendment.

[Remainder of Page Left Intentionally Blank]

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Second Amendment to Third Amended and Restated Credit Agreement

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed by its officers thereunto duly authorized as of the date first above
written.

 

BORROWERS:

 

 

 

U.S. SHIPPING PARTNERS L.P.

 

 

 

 

 

 

By:

US Shipping General Partner LLC,

 

 

its General Partner

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

U.S. SHIPPING OPERATING LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

ITB BALTIMORE LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

ITB GROTON LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

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Second Amendment to Third Amended and Restated Credit Agreement

 

ITB JACKSONVILLE LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

ITB MOBILE LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

ITB NEW YORK LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

ITB PHILADELPHIA LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USS CHARTERING LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

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Second Amendment to Third Amended and Restated Credit Agreement

 

USCS CHEMICAL CHARTERING LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USCS CHEMICAL PIONEER INC.

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USCS CHARLESTON CHARTERING LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USCS CHARLESTON LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USCS ATB LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USS ATB 1 LLC

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

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Second Amendment to Third Amended and Restated Credit Agreement

 

USS ATB 2 LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name:

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USCS SEA VENTURE LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name: 

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USS M/V HOUSTON LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name: 

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

U.S. SHIPPING FINANCE CORP.

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name: 

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USS PRODUCT MANAGER LLC

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name: 

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

 

 

 

 

USS JV MANAGER INC.

 

 

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name: 

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

S-4

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Second Amendment to Third Amended and Restated Credit Agreement

 

USS PC HOLDING CORP.

 

 

 

 

 

By:

/s/ Paul Gridley

 

 

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Name: 

Paul Gridley

 

Title:

Chairman and Chief Executive Officer

AGENTS AND LENDERS:

 

 

 

 

CANADIAN IMPERIAL BANK OF
COMMERCE, as Administrative Agent and
Letter of Credit Issuer

 

 

By:

/s/ Gerald Girardi

 

 

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Name: 

Gerald Girardi

 

Title:

Authorized Signatory

 

 

 

 

 

 

 

By:

 

 

 

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Name: 

 

 

Title:

 

 

 

 

 

LEHMAN COMMERCIAL PAPER INC., as Syndication Agent and Lender

 

 

 

 

 

By:

/s/ Frank P. Turner

 

 

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Name: 

Frank P. Turner

 

Title: 

Vice President

 

 

 

 

KEYBANK NATIONAL ASSOCIATION, as Collateral Agent

 

 

 

 

 

By:

/s/ Thomas Rajan

 

 

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Name: 

Thomas Rajan

 

Title:

Senior Vice President

 

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Second Amendment to Third Amended and Restated Credit Agreement

_________________________________________,

 

as Lender

 

 

 

 

 

By:

/s/ Gerald Girardi

 

 

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Name: 

Gerald Girardi

 

Title:

Authorized Signatory

 

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