Document:

Exhibit 10.3

 

EXECUTION COPY

 

 

OMNIBUS AGREEMENT

 

AMONG

 

OVERSEAS SHIPHOLDING GROUP, INC.,

 

OSG AMERICA LLC, AND

 

OSG AMERICA L.P.

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  
	
  Definitions

  
	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  Restricted Business Opportunities

  
	
   

  
	
  SECTION 2.01.

  	
  Restricted
  Businesses

  	
  7

  
	
  SECTION 2.02.

  	
  Permitted
  Exceptions

  	
  7

  
	
  SECTION 2.03.

  	
  Scope of
  Prohibition

  	
  9

  
	
  SECTION 2.04.

  	
  Enforcement

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  Optional Jones Act Assets

  
	
   

  
	
  SECTION 3.01.

  	
  Option to
  Purchase Certain Jones Act Assets

  	
  9

  
	
  SECTION 3.02.

  	
  Exercise
  Period of Options

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  Business Opportunities and Option Exercise
  Procedures

  
	
   

  
	
  SECTION 4.01.

  	
  Notice of
  Offered Assets

  	
  10

  
	
  SECTION 4.02.

  	
  Exercise of
  Options

  	
  10

  
	
  SECTION 4.03.

  	
  Term Sheets

  	
  11

  
	
  SECTION 4.04.

  	
  Access to
  Information

  	
  11

  
	
  SECTION 4.05.

  	
  Purchase
  Price

  	
  11

  
	
  SECTION 4.06.

  	
  Last Chance
  Option

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  Rights of First Offer

  
	
   

  
	
  SECTION 5.01.

  	
  Rights of
  First Offer

  	
  12

  
	
  SECTION 5.02.

  	
  Procedures
  for Rights of First Offer

  	
  13

  

 

 

	
  ARTICLE VI

  
	
   

  
	
  Indemnification

  
	
   

  
	
  SECTION 6.01.

  	
  OSG
  Indemnification

  	
  14

  
	
  SECTION 6.02.

  	
  Limitation
  Regarding Indemnification

  	
  14

  
	
  SECTION 6.03.

  	
  Indemnification
  Procedures

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  Trade Name License

  
	
   

  
	
  SECTION 7.01.

  	
  Grant of
  Trade Name License

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  Miscellaneous

  
	
   

  
	
  SECTION 8.01.

  	
  Choice of
  Law; Submission to Jurisdiction

  	
  16

  
	
  SECTION 8.02.

  	
  Notice

  	
  16

  
	
  SECTION 8.03.

  	
  Entire
  Agreement

  	
  17

  
	
  SECTION 8.04.

  	
  Termination

  	
  17

  
	
  SECTION 8.05.

  	
  Waiver;
  Effect of Waiver or Consent

  	
  17

  
	
  SECTION 8.06.

  	
  Amendment or
  Modification

  	
  17

  
	
  SECTION 8.07.

  	
  Assignment

  	
  18

  
	
  SECTION 8.08.

  	
  Counterparts

  	
  18

  
	
  SECTION 8.09.

  	
  Severability

  	
  18

  
	
  SECTION 8.10.

  	
  Gender,
  Articles, Sections and Schedules

  	
  18

  
	
  SECTION 8.11.

  	
  Further
  Assurances

  	
  18

  
	
  SECTION 8.12.

  	
  Withholding
  or Granting of Consent

  	
  18

  
	
  SECTION 8.13.

  	
  Laws and
  Regulations

  	
  18

  
	
  SECTION 8.14.

  	
  Negotiation
  of Rights of OSG, Limited Partners, Assignees, and Third Parties

  	
  18

  
	
  SECTION 8.15.

  	
  No Recourse
  Against Officers or Directors

  	
  19

  

 

 

OMNIBUS AGREEMENT is entered into on, and
effective as of, the Closing Date (as defined herein), among OVERSEAS
SHIPHOLDING GROUP, INC., a Delaware corporation (“OSG”), OSG AMERICA
LLC, a Delaware limited liability company (including any permitted successors
and assigns under the Partnership Agreement (as defined herein), “OSG MLP
General Partner”), for itself and on behalf of OSG MLP (as defined herein)
in its capacity as general partner, and OSG AMERICA L.P., a Delaware limited
partnership (“OSG MLP”).

 

WHEREAS OSG MLP proposes to
undertake an initial public offering of its common units and the Parties (as
defined herein) desire to enter into this Agreement to evidence their
understanding with respect to the various matters set forth herein;

 

WHEREAS the Parties desire by
their execution of this Agreement to evidence their understanding, as more
fully set forth in Article II and Article IV, with respect to (a) those
business opportunities that the OSG Entities (as defined herein) will not
pursue during the term of this Agreement and (b) the procedures whereby
such business opportunities are to be offered to the OSG Partnership Group (as
defined herein) and accepted or declined;

 

WHEREAS the Parties desire by
their execution of this Agreement to evidence their understanding, as more
fully set forth in Article III and Article IV, with respect to (a) OSG
MLP’s exclusive options to acquire the Option Assets (as defined herein) and (b) the
procedures whereby such options are exercised;

 

WHEREAS the Parties desire by
their execution of this Agreement to evidence their understanding, as more
fully set forth in Article V, with respect to (a) OSG’s right of
first offer with respect to certain Jones Act Assets (as defined herein) that
the OSG MLP Entities may wish to dispose of and (b) OSG MLP’s right of
first offer with respect to certain Jones Act Assets (as defined herein) the
OSG Entities may wish to dispose of; and

 

WHEREAS the Parties desire by
their execution of this Agreement to evidence their understanding, as more
fully set forth in Article VI, with respect to certain indemnification
obligations of OSG.

 

NOW, THEREFORE, in
consideration of the foregoing and the respective covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Definitions.  For the purposes of this Agreement:

 

“Affiliate” means, with
respect to any Person, any other Person that directly or indirectly through one
or more intermediaries’ controls, is controlled by or is under common control
with, the Person in question.  As used
herein, the term “control” means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

 

“Agreement” means this
Omnibus Agreement, as it may be amended, modified, or supplemented from time to
time in accordance with Section 8.06 hereof.

 

“APSI” means Aker Philadelphia
Shipyard, Inc., a Pennsylvania corporation.

 

“ASC” means American
Shipping Corporation, a Delaware corporation.

 

“Bender” means Bender
Shipbuilding & Repair Co., Inc., an Alabama corporation.

 

“Bid Jones Act Assets”
has the meaning given to such term in Section 2.02(e)(iii).

 

“Change of Control”
means, with respect to any Person (the “Applicable Person”), any of the
following events:  (a) any sale,
lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the Applicable Person’s assets to
any other Person, unless immediately following such sale, lease, exchange or
other transfer such assets are owned, directly or indirectly, by the Applicable
Person; (b) the consolidation or merger of the Applicable Person with or
into another Person pursuant to a transaction in which the outstanding Voting
Securities of the Applicable Person are changed into or exchanged for cash,
securities or other property, other than any such transaction where (i) the
outstanding Voting Securities of the Applicable Person are changed into or
exchanged for Voting Securities of the surviving Person or its parent and (ii) the
holders of the Voting Securities of the Applicable Person immediately prior to
such transaction own, directly or indirectly, not less than a majority of the
outstanding Voting Securities of the surviving Person or its parent immediately
after such transaction; and (c) a “person” or “group” (within the meaning
of Sections 13(d) or 14(d)(2) of the Exchange Act) (other than OSG
or its Affiliates, with respect to OSG MLP General Partner), being or becoming
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act) of more than 50% of all of the then outstanding Voting Securities
of the Applicable Person, except in a merger or consolidation which would not
constitute a Change of Control under clause (b) above.

 

2

 

“Closing Date” means the
date of the closing of the initial public offering of common units representing
limited partner interests in OSG MLP.

 

“Conflicts Committee”
means the Conflicts Committee of the board of directors of OSG MLP General
Partner.

 

“Contribution Agreement”
means that certain Amended and Restated, Contribution, Conveyance and
Assumption Agreement, dated as of the Closing Date, among OSG Bulk Ships, Inc.,
OSG Ship Management, Inc., OSGA MLP One Percent Interest Corporation, OSG
MLP General Partner, OSG MLP and OSG America Operating Company LLC, together
with the additional conveyance documents and instruments contemplated or
referenced thereunder.

 

“Contribution Assets” has
the meaning given such term in Section 6.01.

 

“control” means the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of a Person, whether through ownership of voting
securities, by contract or otherwise.

 

“Covered
Environmental Losses” means all Losses suffered or incurred by the OSG MLP
Group by reason of, arising out of or resulting from:

 

(a) any violation or
correction of violation of Environmental Laws; or

 

(b) any event, omission or
condition relating to environmental or human health and safety matters, in each
case, associated with the ownership or operation by the OSG Entities of the
Contribution Assets (including, without limitation, the presence of Hazardous
Substances on, under, about or migrating to or from the Contribution Assets or
the disposal, release of or exposure to Hazardous Substances generated by or
otherwise related to the operation of the Contribution Assets, irrespective of
where such assets are located), including, without limitation, (i) the
cost and expense of any investigation, assessment, evaluation, monitoring,
containment, cleanup, repair, restoration, remediation or other corrective
action required or necessary under Environmental Laws, (ii) the cost or
expense of the preparation and implementation of any closure, remedial,
corrective action or other plans required or necessary under Environmental Laws
and (iii) the cost and expense for any environmental or toxic tort
pre-trial, trial or appellate legal or litigation support work;

 

but only to the extent that
such violation complained of under clause (a), or such events, omissions or
conditions included in clause (b), occurred before the Closing Date; and, provided
that, in no event shall Losses to the extent arising from a change in any
Environmental Law after the Closing Date be deemed “Covered Environmental
Losses”.

 

“Environmental Laws”
means all U.S. Federal, state and local and all foreign laws, statutes, rules,
regulations, orders, judgments and ordinances relating to protection of health
and safety and the environment, including, without limitation, the United
States Federal Comprehensive Environmental Response, Compensation and

 

3

 

Liability Act, the Resource
Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe
Drinking Water Act, the Toxic Substances Control Act, the Oil Pollution Act of
1990, the Hazardous Materials Transportation Act, the Marine Mammal Protection
Act, the Endangered Species Act, the National Environmental Policy Act, and
other environmental conservation and protection laws, each as amended through
the Closing Date.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“First Offer Negotiation
Notice” has the meaning given such term in Section 5.02(b).

 

“First Offer Negotiation
Period” has the meaning given such term in Section 5.02(c).

 

“Hazardous Substances”
means (a) substances defined in or regulated under applicable
Environmental Laws; (b) petroleum and petroleum products, including crude
oil and any fractions thereof; (c) natural gas, synthetic gas and any
mixtures thereof; (d) any substances with respect to which a Federal,
state, foreign or local agency requires environmental investigation,
monitoring, reporting or remediation; (e) any hazardous waste or solid
waste, pollutant or contaminant within the meaning of any Environmental Law; (f) any
solid, hazardous, dangerous or toxic chemical, material, waste or substance,
within the meaning of and regulated by any Environmental Law; (g) any
radioactive material; and (h) any asbestos-containing materials that
represent a health hazard.

 

“Jones Act Assets” means
any product carrier, tanker or tug-barge unit used in connection with a
Restricted Business and related charters and where the context requires
includes the entity that owns or charters such product carrier, tanker or
tug-barge unit.

 

“Jones Act Project”
means any project involving a Restricted Business.

 

“Last Chance Option” has
the meaning given such term in Section 4.06.

 

“lease”, for the
avoidance of doubt, includes without limitation, a bareboat charter agreement.

 

“Losses” means losses,
damages, liabilities, claims, demands, causes of action, judgments,
settlements, fines, penalties, costs and expenses (including, without
limitation, court costs and reasonable attorneys’ and experts’ fees) of any and
every kind or character; provided, however, that such term shall
not include any special, indirect, incidental or consequential damages.

 

“Negotiation Period” has
the meaning given such term in Section 4.05.

 

“Offered Assets” has the
meaning given such term in Section 4.01.

 

4

 

“Offered Assets Notice”
has the meaning given such term in Section 4.01.

 

“Option Assets” has the
meaning given such term in Section 3.01.

 

“Option Assets Exercise
Notice” has the meaning given such term in Section 4.02.

 

“Options” has the
meaning given such term in Section 3.01.

 

“OSG” is defined in the
introduction to this Agreement.

 

“OSG Bareboat Charter Entity”
has the meaning given such term in Section 3.01(b)(i).

 

“OSG Barge Entity” has
the meaning given such term in Section 3.01(a)(ii).

 

“OSG Entities” means OSG
and any Person controlled, directly or indirectly, by OSG other than the OSG MLP
Entities.

 

“OSG MLP” is defined in
the introduction to this Agreement.

 

“OSG MLP General Partner”
is defined in the introduction to this Agreement.

 

“OSG MLP Entities” means
OSG MLP General Partner and each member of the OSG MLP Group.

 

“OSG MLP Group” means OSG
MLP and any Person controlled by OSG MLP.

 

“OSG MLP Group Member”
means any Person that is part of the OSG MLP Group.

 

“OSG Tug Entity” has the
meaning given to such term in Section 3.01(a)(i).

 

“Parties” means the
parties to this Agreement and their successors and permitted assigns.

 

“Partnership Agreement”
means the Amended and Restated Agreement of Limited Partnership of the OSG MLP,
dated as of the Closing Date, as such agreement is in effect on the Closing
Date, to which reference is hereby made for all purposes of this
Agreement.  No amendment or modification
to the Partnership Agreement subsequent to the Closing Date shall be given
effect for purposes of this Agreement unless consented to by each of the
Parties to this Agreement.

 

“Partnership Securities”
has the meaning given to such term in the Partnership Agreement.

 

5

 

“Person” means an
individual, corporation, partnership, joint venture, trust, limited liability
company, unincorporated organization or any other entity.

 

“Potential Transferee”
has the meaning given such term in Section 5.02(a).

 

“Potential Transferee Group
Member” means the Potential Transferee and any Person controlled by such
Potential Transferee.

 

“Proposed Purchase Price”
has the meaning given to such term in Section 4.05.

 

“Proposed Purchase Price
Notice” has the meaning given to such term in Section 4.05.

 

“Rejection Notice” has
the meaning given to such term in Section 5.02(d).

 

“Restricted Business” has
the meaning given to such term in Section 2.01.

 

“Retained Assets” means
all right, title and interest in and to assets of the OSG Entities other than the
Contribution Assets.

 

“Retained Liabilities”
means any and all liabilities and obligations of any and every kind or
character of the OSG Entities not assumed by the OSG MLP Group pursuant to the
Contribution Agreement.

 

“Sale Assets” has the
meaning given such term in Section 5.02(a).

 

“Section 7-704(d)”
means Section 7-704(d) of the Internal Revenue Code of 1986, as
amended, and any successor provision thereto.

 

“Term Sheet” has the
meaning given such term in Section 4.03.

 

“Transfer” means any
transfer, assignment, sale or other disposition of the leasehold interests or
fee ownership interests in any Jones Act Assets by an OSG Entity or OSG MLP
Group Member or all of the capital stock or membership interests of the OSG
Entity or OSG MLP Group Member that leases or owns any Jones Act Assets, as
applicable; provided, however, that such term shall not include:  (a) transfers, assignments, sales or
other dispositions from an OSG Entity to another OSG Entity, or from an OSG MLP
Group Member to another OSG MLP Group Member; (b) transfers, assignments,
sales or other dispositions pursuant to the terms of any related charter,
contract of affreightment or other agreement with a charter party or the party
to the contract of affreightment, as applicable; (c) transfers,
assignments, sales or other dispositions pursuant to Article II; or (d) grants
of security interests in or mortgages or liens on such Jones Act Assets in
favor of a bona fide third-party lender (but not the foreclosing of any such
security interest, mortgage or lien).

 

“Transfer Notice” has
the meaning given such term in Section 5.02(a).

 

6

 

“Transferring Party” has
the meaning given such term in Section 5.02(a).

 

“Transferring Party Parent”
has the meaning given such term in Section 5.02(a).

 

“Voting Securities”
means securities of any class of a Person entitling the holders thereof to vote
in the election of members of the board of directors or other similar governing
body of the Person.

 

ARTICLE II

 

Restricted Business Opportunities

 

SECTION 2.01.  Restricted Businesses.  Except as permitted by Section 2.02, OSG
shall not, and shall not permit the other OSG Entities to, engage in or acquire
or invest in any business that provides marine transportation, distribution and
logistics services in connection with the transportation of crude oil and
refined petroleum products by water between points in the United States to
which the United States coastwise laws apply to the extent such business, at
the time such business is first proposed to be engaged in by any such OSG
Entity, generates “qualifying income” within the meaning of Section 7-704(d) (each
a “Restricted Business”).

 

SECTION 2.02.  Permitted Exceptions.  Notwithstanding any provision of Section 2.01
to the contrary, any OSG Entity may engage in the following activities under
any of the following circumstances:

 

(a) the engagement in, acquisition of or investment in any
Restricted Business with the approval of the Conflicts Committee;

 

(b) the ownership, operation and/or chartering of any Retained
Assets (including replacements of and modifications or additions to the
Retained Assets) or Option Assets (including replacements of and modifications
or additions to the Option Assets) and in the case of any Option Assets unless
and until such Option Assets are Transferred to an OSG MLP Group Member upon
the exercise of the Option to acquire such Option Assets;

 

(c) the ownership, operation and/or chartering of any Jones Act
Assets acquired after the Closing Date, including Jones Act Assets acquired as
part of a larger transaction, if the OSG Entity acquiring such Jones Act Assets
has offered OSG MLP General Partner the opportunity for any of the OSG MLP Group
Members to acquire such Jones Act Assets in accordance with the procedures set
forth in Article IV and OSG MLP General Partner, with the approval of the
Conflicts Committee, has elected not to cause any OSG MLP Group Member to acquire
such Jones Act Assets;

 

7

 

(d) the entry into any arrangement for the construction of
newbuild Jones Act Assets and/or the chartering of such newbuild Jones Act
Assets to a third party that is not an Affiliate of OSG and upon delivery of
any such newbuild Jones Act Assets the ownership, operation and/or chartering
of such newbuild Jones Act Asset if the OSG Entity acquiring such Jones Act
Assets has offered OSG MLP General Partner the opportunity for any of the OSG
MLP Group Members to acquire such newbuild Jones Act Assets in accordance with
the procedures set forth in Article IV and OSG MLP General Partner, with
the approval of the Conflicts Committee, has elected not to cause any OSG MLP
Group Member to acquire such Jones Act Assets;

 

(e) the ownership, operation and/or chartering of Jones Act Assets
that (i) have been offered to OSG MLP General Partner as described in Section 2.02(c),
(ii) are newbuild Jones Act Assets that have been offered to OSG MLP
General Partner as described in Section 2.02(d) or (iii) relate
to a tender, bid or award for a proposed Jones Act Project that an OSG Entity
has submitted or received (or hereafter submits or receives) (such Jones Act
Assets in clause (iii) being referred to herein as “Bid Jones Act
Assets”), in each case pending the applicable offer of such Jones Act
Assets to OSG MLP General Partner and the determination of OSG MLP General
Partner in accordance with Article IV whether to acquire such Jones Act
Assets and, if OSG MLP General Partner, with the approval of the Conflicts Committee,
has elected to cause an OSG MLP Group Member to acquire such Jones Act Assets,
pending the closing of such acquisition;

 

(f) the ownership, operation and/or chartering of Jones Act Assets
referred to in Section 2.02(e) that OSG MLP General Partner, with the
approval of the Conflicts Committee, has elected to cause an OSG MLP Group
Member to acquire such Jones Act Assets but in respect of which (i) OSG
and the Conflicts Committee failed to agree upon the terms and conditions for
the Transfer of such Jones Act Assets to an OSG MLP Group Member in accordance
with Article IV and (ii) the Last Chance Option was not exercised in
accordance with Section 4.06;

 

(g) the provision by OSG Entities of ship management services
relating to a Restricted Business;

 

(h) the acquisition of up to a 9.9% equity ownership, voting or
profit participation interest in any publicly traded Person (other than OSG MLP)
that engages in a Restricted Business;

 

(i) the ownership, operation and/or chartering of any Jones Act
Assets with respect to which OSG MLP General Partner has advised OSG that OSG
MLP General Partner has elected, with the approval of the Conflicts Committee,
not to cause an OSG MLP Group Member to acquire (or seek to acquire).

 

8

 

SECTION 2.03.  Scope of Prohibition.  If any OSG Entity engages in a Restricted
Business pursuant to any of the exceptions described in Section 2.02 OSG shall
not, and shall not permit the other OSG Entities to, subsequently expand such
business other than pursuant to the exceptions contained in Section 2.02.  Except as otherwise provided in this Article II
and the Partnership Agreement each OSG Entity shall be free to engage (whether
directly or through the acquisition of equity or debt interests in any Person) in
any business activity whatsoever, including those that may be in direct
competition with any OSG MLP Entity.

 

SECTION 2.04.  Enforcement.  OSG agrees and acknowledges that OSG MLP does
not have an adequate remedy at law for the breach by OSG of its covenants and
agreements set forth in this Article II, and that any breach by OSG of its
covenants and agreements set forth in this Article II would result in
irreparable injury to OSG MLP.  OSG
further agrees and acknowledges that OSG MLP may, in addition to the other
remedies which may be available to OSG MLP, file a suit in equity to enjoin OSG
from such breach, and consent to the issuance of injunctive relief to enforce
the provisions of this Article II.

 

ARTICLE III

 

Optional Jones Act Assets

 

SECTION 3.01.  Option to Purchase Certain Jones Act
Assets.  OSG, on behalf of itself and
the other OSG Entities, hereby grants to OSG MLP General Partner, on behalf of
OSG MLP, exclusive options for any of the OSG MLP Group Members to:

 

(a)  purchase (i) all
of the capital stock or membership interests of each OSG Entity specified in
Schedule I to this Agreement (each an “OSG Tug Entity”) that has
entered into a shipbuilding contract with Bender to construct the newbuild
Jones Act Assets specified in Schedule I to this Agreement alongside the
name of such OSG Tug Entity and (ii) with respect to each such OSG Tug
Entity, all of the capital stock or membership interests of each OSG Entity
(each an “OSG Barge Entity”) specified in Schedule 1 alongside such
OSG Tug Entity that has entered into a shipbuilding contract with Bender to
construct the newbuild Jones Act Assets specified in Schedule I alongside
the name of such OSG Barge Entity;

 

(b)  (i) purchase all
of the capital stock or membership interests of each OSG Entity specified in
Schedule II to this Agreement (each an “OSG Bareboat Charter Entity”)
that has entered into a bareboat charter agreement with a wholly owned
subsidiary of ASC to lease from such wholly owned subsidiary of ASC the newbuild
Jones Act Assets specified in Schedule II to this Agreement alongside the
name of such OSG Bareboat Charter Entity that is being or will be constructed
by APSI and (ii) with respect to each such OSG Bareboat Charter Entity, either
purchase all of the capital stock or membership interests of the applicable OSG
Entity that is the indirect parent of the OSG Entity that has entered into a
time charter agreement with such OSG Bareboat Charter Entity to time charter
the newbuild Jones Act Assets leased by such OSG

 

9

 

Bareboat Charter Entity from a wholly owned subsidiary of ASC or take
an assignment of the applicable time charter agreement with such OSG Bareboat
Charter Entity to time charter the newbuild Jones Act Assets leased by such OSG
Bareboat Charter Entity from a wholly owned subsidiary of ASC;

 

Each OSG Entity subject to
clauses (a) and (b) above (collectively, the “Option Assets”)
shall be subject to separate options (each an “Option”, and
collectively, the “Options”) capable of being exercised by OSG MLP
General Partner, with the approval of the Conflicts Committee, individually and
separate from each other Option.

 

SECTION 3.02.  Exercise Period of Options.  Each Option to acquire Option Assets may be
exercised by OSG MLP General Partner, with the approval of the Conflicts
Committee, at any time during the period commencing as of the Closing Date and
ending on the date that is 364 days after the date of delivery of the
applicable Option Assets subject to such Option.

 

ARTICLE IV

 

Business Opportunities and Option Exercise Procedures

 

SECTION 4.01.  Notice of Offered Assets.  In the event that (a) an OSG Entity
acquires Jones Act Assets as described in Section 2.02(c), (b) an OSG
Entity enters into an arrangement for the construction of newbuild Jones Act
Assets as described in Section 2.02(d) or (c) an OSG Entity is
awarded a contract for the transportation requirements for all or any portion
of any proposed Jones Act Project for which an OSG Entity has tendered or
submitted a bid or received an award as described in Section 2.02(e)(iii),
then:

 

(i) in the case of clause (a) above,
not later than 30 days after the consummation of the acquisition; or

 

(ii) in the case of clauses (b) and
(c) above, not later than 180 days before the scheduled delivery date
of the relevant newbuild Jones Act Assets or Bid Jones Act Assets,

 

OSG shall notify (an “Offered
Assets Notice”) OSG MLP General Partner of such event and offer OSG MLP
General Partner the opportunity for any of the OSG MLP Group Members to acquire
such Jones Act Assets (the “Offered Assets”).

 

SECTION 4.02.  Exercise of Options.  OSG MLP General Partner shall notify (an “Option
Assets Exercise Notice”) OSG during the exercise period for each Option that
either (a) OSG MLP General Partner has elected, with the approval of the
Conflicts Committee, not to exercise such Option or (b) OSG MLP General
Partner, with the approval of the Conflicts Committee, has elected to exercise
such Option and wishes to cause an OSG MLP Group Member to acquire the Option
Assets subject to such Option, subject to the negotiation of the terms and
conditions of the Transfer to an OSG

 

10

 

MLP Group Member of such Option Assets in accordance with the
provisions of this Article IV.

 

SECTION 4.03.  Term Sheets.  In the event that (a) OSG gives an
Offered Assets Notice or (b) OSG MLP General Partner gives an Option Assets
Exercise Notice electing, with the approval of the Conflicts Committee, to
exercise the applicable Option, then:

 

(i) in the case of clause (a) above, at the same time
the Offered Assets Notice is given;

 

(ii) in the case of clause (b) above, not later than 45
days after the date of the Option Assets Exercise Notice,

 

OSG shall
submit a term sheet (a “Term Sheet”) to OSG MLP General Partner
containing the fundamental terms and conditions (other than purchase price) on
which it would be willing to Transfer (or to cause another OSG Entity to
Transfer) to an OSG MLP Group Member the applicable Offered Assets or Option
Assets, as applicable, including any liabilities to be assumed by OSG MLP.

 

SECTION 4.04.  Access to Information.  As soon as practicable after a Term Sheet has
been submitted to OSG MLP General Partner, OSG will deliver to OSG MLP General
Partner all information prepared by or on behalf of or in the possession of OSG
relating to the Offered Assets or the Option Assets, as applicable, and
reasonably requested by OSG MLP General Partner.  As a condition of delivery of such
information to OSG MLP General Partner, OSG may require OSG MLP General Partner
to execute a formal confidentiality agreement in respect of such information in
a form reasonably satisfactory to OSG.

 

SECTION 4.05.  Purchase Price.  Within 45 days after receiving a Term
Sheet, OSG MLP General Partner shall, with the approval of the Conflicts
Committee, notify (a “Proposed Purchase Price Notice”) OSG of the consideration,
which may be any combination of cash and Partnership Securities, (the “Proposed
Purchase Price”) it is willing to cause an OSG MLP Group Member to pay for
the applicable Offered Assets or Option Assets. 
OSG and the Conflicts Committee shall negotiate in good faith for a 50-day
period following receipt of the Proposed Purchase Price Notice by OSG (the “Negotiation
Period”) the terms and conditions of an agreement, including the
consideration, for the Transfer of such Offered Assets or Option Assets, as
applicable, to an OSG MLP Group Member and such terms and conditions and consideration
are to be based on the terms and conditions set forth in the Term Sheet and the
Proposed Purchase Price Notice.  If OSG
and the Conflicts Committee are unable to agree on the terms and conditions of
an agreement for the Transfer of such Offered Assets or Option Assets, as
applicable, during the Negotiation Period then OSG and the Conflicts Committee
shall negotiate in good faith for a further 10-day period the terms and
conditions of a cash-only agreement for the Transfer of such Offered Assets or
Option Assets, as applicable, to an OSG MLP Group Member and failing agreement the
applicable OSG Entity may Transfer the applicable Offered Assets or Option
Assets to a third party not Affiliated

 

11

 

with OSG within 180 days after the end of the 10-day period
immediately following the Negotiation Period on terms and conditions that are
not materially more favorable to the proposed purchaser than the terms and
conditions specified in the Term Sheet and for a purchase price that is not
less than 101% of the fair market value of the Proposed Purchase Price without
any further obligation, during such 180 day period, to offer OSG MLP General
Partner the opportunity for any of the OSG MLP Group Members acquire the
applicable Offered Assets or Option Assets in accordance with Article V.

 

SECTION 4.06.  Last Chance Option.  If the applicable OSG Entity has not
Transferred, or agreed in writing to Transfer, such Offered Assets or Option
Assets, as applicable, to a third party not Affiliated with OSG within 180 days
after the end of the 10-day period immediately following the Negotiation Period
in accordance with Section 4.05 then OSG MLP General Partner may elect,
with the approval of the Conflicts Committee, to cause an OSG MLP Group Member
to acquire the applicable Offered Assets or Option Assets upon the terms and
conditions specified in the Term Sheet and for the Proposed Purchase Price (a “Last
Chance Option”).  OSG MLP General
Partner shall notify OSG within 45 days of the earlier of the expiration
of the 180-day period after the end of the 10-day period immediately following
the Negotiation Period and such date on which OSG notifies OSG MLP General
Partner that it will no longer pursue a Transfer to a third party not Affiliated
with OSG that either (a) OSG MLP General Partner has elected, with the
approval of the Conflicts Committee, not to exercise the Last Chance Option or (b) OSG
MLP General Partner, with the approval of the Conflicts Committee, has elected
to exercise the Last Chance Option and wishes to cause an OSG MLP Group Member
to acquire the Offered Assets or Option Assets subject to such Last Chance
Option upon the terms and conditions specified in the Term Sheet and for the
Proposed Purchase Price.  In the event that
OSG MLP General Partner elects, with the approval of the Conflicts Committee,
not to exercise the Last Chance Option with respect to such Offered Assets or
Option Assets, then such OSG Entity shall be permitted to retain such Offered
Assets or Option Assets in accordance with Article II.

 

ARTICLE V

 

Rights of First Offer

 

SECTION 5.01.  Rights of First Offer.  (a)  OSG MLP, on behalf of itself and the
other OSG MLP Group Members, hereby grants to OSG a right of first offer on any
proposed Transfer by any OSG MLP Group Member of any Jones Act Assets owned, operated
or chartered by any such OSG MLP Group Member.

 

(b)  OSG, on behalf of
itself and the other OSG Entities, hereby grants to OSG MLP General Partner, on
behalf of OSG MLP, a right of first offer on any proposed Transfer by any OSG
Entity of any Jones Act Assets owned, operated or chartered by any such OSG
Entity, including any Option Asset or Offered Asset not purchased by any OSG
MLP Group Member pursuant to Article IV.

 

12

 

(c)  The Parties
acknowledge that all potential Transfers of Jones Act Assets pursuant to this Article V
are subject to obtaining any and all written consents of governmental
authorities and other non-affiliated third parties and to the terms of all
existing agreements in respect of such Jones Act Assets.

 

SECTION 5.02.  Procedures for Rights of First Offer.  (a)  In the event that an OSG MLP Group
Member or an OSG Entity (as applicable, the “Transferring Party”)
proposes to Transfer any Jones Act Assets (the “Sale Assets”) to a third
party not Affiliated with such Transferring Party, prior to engaging in any
negotiations or otherwise offering to Transfer the Sale Assets to any such
third party, OSG or OSG MLP General Partner on behalf of such Transferring
Party (the “Transferring Party Parent”) shall notify (a “Transfer
Notice”) OSG or OSG MLP General Partner, as applicable, (the “Potential
Transferee”) of such event and shall specify in such Transfer Notice the
fundamental terms and conditions (including the consideration to be paid) on
which it would be willing to Transfer (or if it is not the Transferring Party,
to cause the Transferring Party to Transfer) to a Potential Transferee Group
Member the Sale Assets, including any liabilities to be assumed by the
Potential Transferee Group Member.  OSG
General Partner may only give a Transfer Notice with the approval of the
Conflicts Committee.

 

(b)  The Potential
Transferee shall notify (a “First Offer Negotiation Notice”) the Transferring
Party Parent within 10 days of receiving a Transfer Notice that either (a) the
Potential Transferee does not wish to cause a Potential Transferee Group Member
to acquire the Sale Assets or (b) the Potential Transferee does wish to
cause a Potential Transferee Group Member to acquire the Sale Assets, subject
to the negotiation of the terms and conditions of the Transfer of the Sale
Assets to a Potential Transferee Group Member in accordance with the provisions
of this Article V.  OSG General
Partner may only give a First Offer Negotiation Notice with the approval of the
Conflicts Committee.

 

(c)  In the event that a
Potential Transferee gives a First Offer Negotiation Notice specifying that the
Potential Transferee does wish to cause a Potential Transferee Group Member to
acquire the Sale Assets then the Potential Transferee and the Transferring
Party Parent shall negotiate in good faith for a 60-day period following
receipt of the First Offer Negotiation Notice by the Transferring Party Parent
(the “First Offer Negotiation Period”) the terms and conditions of an
agreement for the Transfer of such Sale Assets to a Potential Transferee Group
Member and such terms and conditions are to be based on the terms and conditions
set forth in the Transfer Notice.

 

(d)  If (i) the
Potential Transferee has given a First Offer Negotiation Notice specifying  that the Potential Transferee does not wish
to cause a Potential Transferee Group Member to acquire the Sale Assets (a “Rejection
Notice”) or (ii) the Potential Transferee and the Transferring Party
Parent are unable to agree on the terms and conditions of an agreement for the
Transfer of such Sale Assets during the First Offer Negotiation Period, then
the Transferring Party may Transfer such Sale Assets to a third party not
Affiliated with the Transferring Party within 180 days after the earlier of the
date the Transferring Party Parent receives a Rejection Notice and the end of
the First

 

13

 

Offer Negotiation Period on terms and conditions that are not
materially more favorable to the proposed purchaser than the terms and
conditions specified in the Transfer Notice.

 

(e)  If the Transferring
Party has not Transferred, or agreed in writing to Transfer, such Sale Assets to
a third party not Affiliated with such Transferring Party within 180 days
after the earlier of the date the Transferring Party Parent receives a
Rejection Notice and the end of the First Offer Negotiation Period in
accordance with clause (d) then the Transferring Party shall not
thereafter Transfer any of such Sale Assets without first offering such Sale Assets
to the applicable Potential Transferee in the manner provided above.

 

ARTICLE VI

 

Indemnification

 

SECTION 6.01.  OSG Indemnification.  Subject to the provisions of Section 6.02
and Section 6.03, OSG shall indemnify, defend and hold harmless the OSG MLP
Group from and against:  (a) any Covered Environmental Losses
relating to the assets contributed by the OSG Entities to the OSG MLP Group  prior to or on the Closing Date (the “Contribution
Assets”) to the extent that OSG is notified by OSG MLP General Partner of
any such Covered Environmental Losses within five years after the Closing Date;
(b) Losses to the OSG MLP Group arising from (i) the failure of the OSG
MLP Group, immediately after the Closing Date, to be the owner of such valid
leasehold interests or fee ownership interests in and to the Contribution
Assets, as applicable, as are necessary to enable the OSG MLP Group Members to
own or operate the Contribution Assets in substantially the same manner that the
Contribution Assets were owned or operated by the OSG Entities immediately
prior to the Closing Date or (ii) the failure of the OSG MLP Entities to
have by the Closing Date any consent or governmental permit necessary to allow
the OSG MLP Entities to own or operate the Contribution Assets in substantially
the same manner that the Contribution Assets were owned or operated by the OSG
Entities immediately prior to the Closing Date, in each of clauses (i) and
(ii) above, to the extent that OSG is notified by OSG MLP General Partner
of such Losses within three years after the Closing Date; (c) all U.S. Federal,
state and local income tax liabilities attributable to the operation of the
Contribution Assets prior to the Closing Date, including any such income tax
liabilities that may result from the consummation of the formation transactions
for the OSG MLP Group and OSG MLP General Partner but excluding any U.S. Federal,
state and local income taxes reserved on the books of the OSG MLP Group on the Closing
Date, to the extent that OSG is notified by OSG MLP General Partner of such
income tax liabilities within 60 days after the expiration of the applicable
statute of limitations for any claims relating thereto; (d) Losses
attributable to or associated with ownership or operation of the Retained
Assets, whether occurring before or after the Closing Date; and (e) any
Retained Liabilities.

 

SECTION 6.02.  Limitation Regarding Indemnification.  The aggregate liability of OSG under Section 6.01(a) above
shall not exceed $10,000,000.  Furthermore,
no claim may be made against OSG for indemnification pursuant to Section 6.01(a)

 

14

 

unless the aggregate dollar amount of all claims for indemnification
pursuant to such section shall exceed $500,000, in which case OSG shall be
liable for claims for indemnification only to the extent such aggregate amount
exceeds $500,000.  Notwithstanding the
foregoing, in the case any Covered Environmental Losses relating to the December 19,
2006 Plea Agreement between OSG and the United States, the limitations on
liability contained in this Section 6.02 shall not apply to OSG’s
indemnification obligations under Section 6.01(a) above for criminal
fines, special assessments or community service payments set forth in Paragraphs
6 and 9 of such Plea Agreement.

 

SECTION 6.03.  Indemnification Procedures.  (a)  OSG MLP General Partner agrees on
behalf of OSG MLP and the OSG MLP Group Members, that within a reasonable
period of time after any OSG MLP Group member becomes aware of facts giving
rise to a claim for indemnification pursuant to Section 6.01, to notify OSG
of the nature and specific basis for such claim.

 

(b)  OSG shall have the
right to control all aspects of the defense of (and any counterclaims with
respect to) any claims brought against the OSG MLP Group that are covered by
the indemnification set forth in Section 6.01, including, without
limitation, the selection of counsel, determination of whether to appeal any
decision of any court and the settling of any matter or any issue relating
thereto; provided, however, that no such settlement shall be
entered into without the consent (which consent shall not be unreasonably withheld)
of OSG MLP General Partner (with the concurrence of the Conflicts Committee),
on behalf of the OSG MLP Group, unless it includes a full release of the OSG MLP
Group from such matter or issue, as the case may be.

 

(c)  OSG MLP and OSG MLP General
Partner shall, and shall cause the OSG MLP Group Members to, cooperate fully
with OSG with respect to all aspects of the defense of any claims covered by
the indemnification set forth in Section 6.01, including, without
limitation, the prompt furnishing to OSG of any correspondence or other notice
relating thereto that the OSG MLP Group may receive, permitting the names of
the members of the OSG MLP Group to be utilized in connection with such
defense, the making available to OSG of any files, records or other information
of the OSG MLP Group that OSG considers relevant to such defense and the making
available to OSG of any employees of the OSG MLP Group; provided, however,
that in connection therewith OSG agrees to use reasonable efforts to minimize
the impact thereof on the operations of the OSG MLP Group and further agrees to
maintain the confidentiality of all files, records and other information
furnished by an OSG MLP Group Member pursuant to this Section 6.03.  The OSG MLP Group Members, may, at their own
option, cost and expense, hire and pay for counsel in connection with any such
defense.  OSG agrees to keep any such
counsel hired by the OSG MLP Group reasonably informed as to the status of any
such defense (including providing such counsel with such information related to
any such defense as such counsel may reasonably request) but OSG shall have the
right to retain sole control over such defense.

 

(d)  In determining the
amount of any Loss for which any of the members of the OSG MLP Group are
entitled to indemnification under this Agreement, the gross

 

15

 

amount of the indemnification will be reduced by (i) any insurance
proceeds realized by the OSG MLP Group and such correlative insurance benefit
shall be net of any incremental insurance premium that becomes due and payable
by the OSG MLP Group as a result of such claim, and (ii) all amounts
recovered by the OSG MLP Group under contractual indemnities from any third party.  OSG MLP hereby agrees to use commercially
reasonable efforts to realize any applicable insurance proceeds or amounts
recoverable under such contractual indemnities; provided, however,
that the costs and expenses (including, without limitation, court costs and
reasonable attorneys’ fees) of the OSG MLP Group in connection with such
efforts shall be promptly reimbursed by OSG in advance of any determination of
whether such insurance proceeds or other amounts will be recoverable.

 

ARTICLE VII

 

Trade Name License

 

SECTION 7.01.  Grant of Trade Name License.  OSG hereby grants to the OSG MLP Group a
limited, royalty-free, non-exclusive, non-transferable license to use the name “OSG”
and associated logo solely in connection with any Restricted Business carried
on by any OSG MLP Group Member.  OSG MLP
on behalf of itself and the OSG MLP Entities hereby acknowledges that OSG owns
all rights, title and interest in, to and under the name “OSG”, the associated
logo and the goodwill symbolized by and connected with the use thereof.

 

ARTICLE VIII

 

Miscellaneous

 

SECTION 8.01.  Choice of Law; Submission to Jurisdiction.  This Agreement shall be subject to and
governed by the laws of the State of New York, without regard to any
conflicts-of-law rule or principle that might refer the construction or
interpretation of this Agreement to the laws of another jurisdiction.  Each Party hereby submits to the jurisdiction
of the state and Federal courts located in the State of New York and to venue
in New York, New York.

 

SECTION 8.02.  Notice.  All notices or other communications required
or permitted to be given hereunder shall be in writing and shall be delivered
by hand or sent by facsimile or sent, postage prepaid, by registered, certified
or express mail or overnight courier service and shall be deemed given when so
delivered by hand or facsimile, or if mailed, three days after mailing (one
business day in the case of express mail or overnight courier service) to the
Parties at the following addresses (or at such other address for a Party as
shall be specified by like notice):

 

16

(a)  if to OSG:

 

Overseas Shipping Group, Inc.

666 Third Avenue

New York, NY 10017

Attention:  Legal Department

Facsimile:  (212) 251-1180

 

(b)  if to OSG MLP General
Partner or OSG MLP:

 

In care of OSG America LLC

Two Harbour Place

302 Knights Run Avenue

Suite 1200

Tampa, FL 33602

Attention:  President

Facsimile:  (813) 221-2769

 

SECTION 8.03.  Entire Agreement.  This Agreement constitutes the entire
agreement of the Parties relating to the matters contained herein, superseding
all prior contracts or agreements, whether oral or written, relating to the
matters contained herein.

 

SECTION 8.04.  Termination.  The provisions of Articles II, IV
(except with respect to Option Assets), V and VII of this Agreement (but not
less than all of such Articles II and V) may be terminated by (a) OSG,
with respect to all OSG Entities, upon notice to the other Parties upon a
Change of Control of OSG and (b) OSG MLP General Partner, with respect to
the OSG MLP Group, upon notice to the other Parties upon a Change of Control of
OSG MLP General Partner.

 

SECTION 8.05.  Waiver; Effect of Waiver or Consent.  Any Party hereto may (a) extend the time
for the performance of any obligation or other act of any other Party hereto or
(b) waive compliance with any agreement or condition contained herein.  Except as otherwise specifically provided
herein, any such extension or waiver shall be valid only if set forth in a
written instrument duly executed by the Party or Parties to be bound thereby; provided,
however, that OSG MLP may not, without the prior approval of the
Conflicts Committee, agree to any extension or waiver of this Agreement that,
in the reasonable discretion of OSG MLP General Partner, will adversely affect the
holders of common units of OSG MLP.  No
waiver or consent, express or implied, by any Party of or to any breach or
default by any Person in the performance by such Person of its obligations
hereunder shall be deemed or construed to be a waiver or consent of or to any
other breach or default in the performance by such Person of the same or any
other obligations of such Person hereunder. 
Failure on the part of a Party to complain of any act of any Person or
to declare any Person in default, irrespective of how long such failure
continues, shall not constitute a waiver by such Party of its rights hereunder
until the applicable statute of limitations period has run.

 

SECTION 8.06.  Amendment or Modification.  This Agreement may be amended or modified
from time to time only by the written agreement of all the Parties hereto; provided,
however, that OSG MLP may not, without the prior approval of the

 

17

 

Conflicts Committee, agree to any amendment or modification of this
Agreement that, in the reasonable discretion of OSG MLP General Partner, will
adversely affect the holders of common units of OSG MLP.

 

SECTION 8.07.  Assignment.  No Party shall have the right to assign its
rights or obligations under this Agreement without the consent of the other Parties
hereto; provided, however, that OSG may make such an assignment
in the event that there is a Change of Control in respect of OSG.

 

SECTION 8.08.  Counterparts.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the Parties and delivered to the other Parties.

 

SECTION 8.09.  Severability.  If any provision of this Agreement (or any
portion thereof) or the application of any such provision (or any portion
thereof) to any Person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision
to any other Persons or circumstances.

 

SECTION 8.10.  Gender, Articles, Sections and Schedules.  Whenever the context requires, the gender of
all words used in this Agreement shall include the masculine, feminine and
neuter, and the number of all words shall include the singular and plural.  When a reference is made in this Agreement to
an Article, Section or Schedule, such reference shall be to an Article or
Section of, or Schedule to, this Agreement unless otherwise indicated.

 

SECTION 8.11.  Further Assurances.  In connection with this Agreement and all
transactions contemplated by this Agreement, each signatory party hereto agrees
to execute and deliver such additional documents and instruments and to perform
such additional acts as may be necessary or appropriate to effectuate, carry
out and perform all of the terms, provisions and conditions of this Agreement
and all such transactions.

 

SECTION 8.12.  Withholding or Granting of Consent.  Each Party may, with respect to any consent
or approval that it is entitled to grant pursuant to this Agreement, grant or
withhold such consent or approval in its sole and uncontrolled discretion, with
or without cause, and subject to such conditions as it shall deem appropriate.

 

SECTION 8.13.  Laws and Regulations.  Notwithstanding any provision of this Agreement
to the contrary, no Party to this Agreement shall be required to take any act,
or fail to take any act, under this Agreement if the effect thereof would be to
cause such Party to be in violation of any applicable law, statute, rule or
regulation.

 

SECTION 8.14.  Negotiation of Rights of OSG, Limited
Partners, Assignees, and Third Parties. 
The provisions of this Agreement are enforceable solely by the Parties
to this Agreement, and no shareholder of OSG and no limited partner,

 

18

 

member, assignee or other Person of OSG MLP shall have the right,
separate and apart from OSG or OSG MLP to enforce any provision of this
Agreement or to compel any Party to this Agreement to comply with the terms of
this Agreement.

 

SECTION 8.15.  No Recourse Against Officers or Directors.  For the avoidance of doubt, the provisions of
this Agreement shall not give rise to any right of recourse against any officer
or director of any OSG Entity or any OSG MLP Entity.

 

[Signature Page follows]

 

19

 

IN WITNESS WHEREOF, the Parties
have executed this Omnibus Agreement on, and effective as of, the Closing Date.

 

	
   

  	
  OVERSEAS
  SHIPHOLDING GROUP, INC.,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   /s/ Mats Berglund

  
	
   

  	
  Name: Mats Berglund

  
	
   

  	
  Title: Senior Vice President

  
					

 

 

	
   

  	
  OSG AMERICA
  LLC,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   /s/ Myles R. Itkin

  
	
   

  	
  Name: Myles R. Itkin

  
	
   

  	
  Title: Chief Financial Officer

  
					

 

 

	
   

  	
  OSG AMERICA
  L.P.,

  
	
   

  	
   

  
	
   

  	
  by  OSG AMERICA LLC, its general
  partner,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   /s/ Myles R. Itkin

  
	
   

  	
  Name: Myles R. Itkin

  
	
   

  	
  Title: Chief Financial OfficerExhibit 10.4

 

Part I

 

SHIP
MANAGEMENT AGREEMENT

 

1.                 Date of Agreement

 

November 15, 2007

 

2.                 Owners (name, place of registered office
and law of registry) (CI. 1)

 

Name

OSG America L.P. and the Owners of
the Managed Vessels (as indicated below)

 

Place of registered office

c/o OSG America LLC, Two Harbour
Place, 302 Knights Run Avenue, Tampa FL 33602

 

Law of registry

United States

 

3.                 Managers (name, place of registered
office and law of registry) (CI. 1)

 

Name

OSG Ship Management, Inc.

 

Place of registered office

Two Harbour Place, 302 Knights Run
Avenue, Tampa FL  33602

 

Law of registry

United States

 

4.                 Day and year of commencement of Agreement
(CI. 2)

 

See Clause 20

 

5.                 Crew management (state “yes” or “no” as
agreed) (CI. 3.1)

 

Yes

 

6.                 Technical Management (state “yes” or “no”
as agreed) (CI. 3.2)

 

Yes

 

7.                 Commercial Management (state “yes” or
“no” as agreed) (CI. 3.3)

 

Yes

 

8.                 Insurance Arrangements (state “yes” or
“no” as agreed) (CI. 3.4)

 

Yes

 

9.                 Accounting Services (state “yes” or “no”
as agreed) (CI. 3.5)

 

Yes

 

10.           Sale or purchase of the Vessel (state
“yes” or “no” as agreed) (CI. 3.6)

 

No

 

11.           Provisions (state “yes” or “no” as
agreed) (CI. 3.7)

 

Yes

 

12.           Bunkering (state “yes” or “no” as agreed)
(CI. 3.8)

 

Yes

 

13.           Chartering Services Period (only to be
filled in if “yes” stated in Box 7) (CI. 3.3(i))

 

 

The duration of this Agreement until
terminated pursuant to Clauses 17 and 20.

 

14.           Owners’ Insurance

 

See Clause 6.3(ii)

 

15.           Annual Management Fee

 

See Clause 30

 

16.           Severance Costs (state maximum amount) (CI.
8.4(ii))

 

See Clause 8.3

 

17.           Day and year of termination of Agreement
(CI. 17)

 

See Clauses 17 and 20

 

18.           Law and Arbitration

 

See Clause 18

 

19.           Notices (state postal and cable address,
telex and telefax number for serving notice and communication to the Owners
(CI. 20 )

 

OSG America L.P.

c/o OSG America LLC

Two Harbour Place

302 Knights Run Avenue

Tampa FL 33602

 

20.           Notices (state postal and cable address,
telex and telefax number for serving notice and communication to the
Managers) ( CI. 20 )

 

OSG Ship Management, Inc.

Two Harbour Place

302 Knights Run Avenue

Tampa FL 33602

 

It is mutually
agreed between the party stated in Box 2 and the party stated in Box
3 that this Agreement consisting of PART I and PART II
as well as Annexes “A” (Details of Vessel), “B” (Details of Crew), “C” (Budget)
and “D” (Associated vessels) attached hereto, shall be performed subject to the
conditions contained herein.  In the event of a conflict of conditions,
the provisions of PART I and Annexes “A”, “B”, “C” and “D” shall
prevail over those of PART II to the extent of such conflict but no
further.

 

	
  Signature(s) (Owners)

  	
  Signature(s) (Managers)

  
	
   

  	
   

  
	
   See
  Exhibit C

  	
  /s/ Peter Popov

  	
   

  

 

 

ANNEX
“A” (DETAILS OF VESSEL OR VESSELS) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT – CODE NAME: “SHIPMAN 98”

 

Date of Agreement

November 15, 2007

 

Name of Vessels
(s):

 

Particulars of
Vessels(s):

 

 

ANNEX
“B” (DETAILS OF CREW) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT – CODE NAME: “SHIPMAN 98”

 

Date of Agreement

November 15, 2007

 

Details of Crew:

 

	
  Numbers

  	
   

  	
  Rank

  	
   

  	
  Nationality

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

ANNEX “C” (BUDGET) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT – CODE NAME: “SHIPMAN 98”

 

Date of Agreement

November 15, 2007

 

Managers’ Budget for the first year with
effect from the Commencement Date of this Agreement:

 

 

ANNEX “D” (ASSOCIATED
VESSELS) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT – CODE NAME: “SHIPMAN 98”

 

NOTE:  PARTIES SHOULD BE AWARE THAT BY COMPLETING
THIS ANNEX “D” THEY WILL BE SUBJECT TO THE PROVISIONS OF SUB-CLAUSE
18.1(i) OF THIS AGREEMENT.

 

Date of Agreement

November 15, 2007

 

Details of Associated Vessels:

 

 

PART II

Ship Management Agreement

 

1.                Definitions

 

In this
Agreement save where the context otherwise requires, the following words and
expressions shall have the meanings hereby assigned to them.

 

“Operating Costs” means
all costs incurred in providing provisions and crew (including crew support
costs, as defined below), commercial and technical management for the Vessels,
as more fully described in Clause 3, and the cost of insuring Vessels, as more
fully described in Clauses 3 and 6.

 

“Owners”
means the parties identified in Box 2.

 

“Managers”
means the party identified in Box 3.

 

“Vessel”
or “Vessels” means each of the
vessels, singularly or collectively, as the case may be, identified in
Exhibit A hereto, which may, from time to time, be amended (see Clauses
17.3 and 24).

 

 “Crew” means the Master, officers and ratings of
the Vessels.

 

“Crew Support Costs”
means all expenses of a general nature which are not particularly referable to
any individual vessel for the time being managed by the Managers and which are
incurred by the Managers for the purpose of providing an efficient and economic
management service and, without prejudice to the generality of the foregoing,
shall include the cost of crew standby pay, training schemes for officers and
ratings, cadet training schemes, sick pay, study pay, recruitment and
interviews.

 

“Severance Costs”
means the costs which the employers are legally obliged to pay to or in respect
of the Crew as a result of the early termination of any employment contract for
service on the Vessel.

 

 “Crew Insurances”
means insurances against crew risks which shall include but not be limited to
death, sickness, repatriation, injury, shipwreck unemployment indemnity and
loss of personal effects.

 

“Management Services”
means the services specified in subclauses 3.1 to 3.8 as indicated
affirmatively in Boxes 5 to 12.

 

“ISM Code”
means the International Management Code for the Safe Operation of Ships and for
Pollution Prevention as adopted by the International Maritime Organization
(IMO) by resolution A.741(18) or any subsequent amendment thereto.

 

“STCW 95”
means the International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, as amended in 1995 or any subsequent
amendment thereto.

 

2.                Appointment of Managers

 

With effect
from the day and year provided in Clause 20 and continuing unless and until
terminated as provided herein, the Owners hereby appoint the Managers and the
Managers hereby agree to act as the Managers of the Vessels.

 

3.                Basis of Agreement

 

Subject to
the terms and conditions herein provided, during the period of this Agreement,
the Managers shall carry out Management Services (as defined in Clause 3) in
respect of the Vessels as agents for and on behalf of the Owners.  The
Managers shall have authority to take such actions as they may from time to
time in their absolute discretion consider to be necessary to enable them to
perform this Agreement in accordance with sound ship management practice.

 

3.1      Crew Management

 

(only applicable if agreed according to Box 5)

 

The Managers
shall provide suitably qualified Crew for the Vessels in accordance with the
STCW 95 requirements, provision of which includes but is not limited to the
following functions:

 

(i)                                   selecting
and engaging each Vessel’s Crew, including payroll arrangements, pension
administration, severance costs and Crew insurances other than those mentioned
in Clause 6;

 

 

(ii)                                ensuring
that the applicable requirements of the law of the flag of the Vessel are
satisfied in respect of manning levels, rank, qualification and certification
of the Crew and employment regulations including Crew’s tax, social insurance,
discipline and other requirements;

 

(iii)                             ensuring
that all members of the Crew have passed a medical examination with a qualified
doctor certifying that they are fit for the duties for which they are engaged
and are in possession of valid medical certificates issued in accordance with
appropriate flag State requirements.  In the absence of applicable flag
State requirements the medical certificate shall be dated not more than three
months prior to the respective Crew members leaving their country of domicile
and maintained for the duration of their service on board the Vessel;

 

(iv)                             ensuring
that the Crew shall have a command of the English language of a sufficient
standard to enable them to perform their duties safely;

 

(v)                                arranging
transportation and, when necessary, meals and lodging of the Crew, including
repatriation;

 

(vi)                             training
of the Crew and supervising their efficiency;

 

(vii)                          conducting
union negotiations and maintaining complete records of all labor agreements
entered into between the Owners and the Crew;

 

(viii)                       operating
the Managers’ drug and alcohol policy unless otherwise agreed; and

 

(ix)                               maintaining
all administrative, training and financial records relating to the Crew, as
required by law, labor agreements and prudent management practices.

 

3.2      Technical Management

 

(only applicable if agreed according to Box 6)

 

The Managers
shall provide technical management which includes, but is not limited to, the
following functions:

 

(i)                                   provision
of competent personnel to supervise the maintenance and general efficiency of
the Vessels;

 

(ii)                                arrangement
and supervision of dry dockings, repairs, alterations and the upkeep of the
Vessels in conformity with prudent management practices and standards.  The Managers shall be entitled to incur the
necessary expenditure to ensure that the Vessels will comply with the law of
the flag of each Vessel and of the places where she trades, and all
requirements and recommendations of the classification society;

 

(iii)                             arrangement
of the supply of necessary stores, spares, fresh water and lubricating oil and
greases.  The level and time of the supply of such items shall be based on
that which a prudent owner of a vessel of the age and characteristics of the
Vessel (including but not limited to its operating history, planned maintenance
and known wear and tear) would arrange so as to minimize off-hire time and to
undertake such maintenance as may safely be carried out at sea by the crew;

 

(iv)                            appointment
of surveyors and technical consultants and service engineers as the Managers
may consider from time to time to be necessary;

 

(v)                               development,
implementation and maintenance of a Safety Management System (SMS) in
accordance with the ISM Code (see subclause 
4.2  and 5.3);

 

(vi)                             ensuring
that the Vessels receive at least two visits per year from one of the Managers’
technical superintendents;

 

(vii)                          arrangement
of oil company vettings so as to comply with the Owner’s obligations under the
charters of the Vessels; and

 

(viii)                       provide
oil pollution incident and marine casualty response planning and management
services, as detailed in Clause 30.

 

 

 3.3       Commercial
Management

 

(only applicable if agreed according to Box 7)

 

The Managers
shall provide the commercial operation of the Vessels, which includes, but is
not limited to, the following functions:

 

(i)                                         providing
chartering services which include, but are not limited to, seeking and
negotiating employment for the Vessel and the conclusion (including the
execution thereof) of charter parties or other contracts relating to the
employment of the Vessel.  If such a
contract exceeds the period stated in Box 13 consent thereto in writing
shall first be obtained from the Owners.

 

(ii)                                      arranging
of the proper payment to Owners or their nominees of all hire and/or freight
revenues or other moneys of whatsoever nature to which Owners may be entitled
arising out of the employment of or otherwise in connection with the Vessels.

 

(iii)                                   providing
voyage estimates and accounts and calculating of hire, freights, demurrage
and/or despatch moneys due from or due to the charterers of the Vessels;

 

(iv)                                 invoicing
hire, freight, demurrage and other accounts or debts due from the Vessels’
charterers, arranging for payment of accounts due Vessels’ charterers and
otherwise settling all accounts as between the Owners and the Vessels’
charterers.

 

(v)                                    issuing
of voyage instructions;

 

(vi)                  arranging
for the appointment of Vessel agents in each load and discharge port to arrange
for necessary Vessel services, including, without limitation, arrangements for
port entrance and clearance, pilots, consular approvals, tugs, canal transits,
the payment of port-related disbursements and generally looking after and
protecting the Owners’ interests in such port;

 

(vii)                                appointing
stevedores; preparing, issuing or causing to be issued, to shippers, cargo
receipts and/or bills of lading; and

 

(viii)                             arranging
surveys associated with the commercial operation of the Vessels.

 

3.4       Insurance Arrangements

 

(only applicable if agreed according to Box 8)

 

The Managers
shall arrange insurances in accordance with Clause 6 subject to the
following:

 

Throughout
the term of this Agreement, the Managers shall secure coverage for the Owners’
Insurances (as defined in Clause 6.1) for the Vessels at the Owners’ expense
through the Managers’ insurance program on coverage amounts (except for hull
and machinery insurance in which is subject to Clause 6.6 of this Agreement),
terms and conditions that the Managers shall determine.  The Managers
shall obtain insurance coverage for the Vessels through the Managers’ insurance
program that is in accordance with the best practice of prudent managers of
vessels of a similar type to the Vessels, with first class insurance companies,
underwriters or associations.

 

The Managers
shall arrange for the Owners’ Insurances to be in place as of the effective
date of this Agreement and shall maintain the insurance cover existing
immediately prior to such effective date at least until the discharge of the
cargo from its then current voyage.

 

3.5       Accounting Services

 

(only applicable if agreed according to Box 9)

 

The Managers
shall:

 

 (i)                                      establish
an accounting system which conforms with prudent vessel management practices
and standards and provide regular accounting services, supply regular reports
and records.

 

(ii)                 maintain
the records of all costs and expenditures incurred as well as data necessary or
proper for the settlement of accounts between the parties.

 

 

3.6       Sale or Purchase of the Vessel

 

(only applicable if agreed according to  Box
10)

 

N/A.

 

3.7       Provisions

 

(only applicable if agreed according to Box 11)

 

The Managers
shall arrange for the supply of provisions.

 

3.8       Bunkering

 

 (only
applicable if agreed according to  Box 12)

 

The Managers
shall arrange for the provision of bunkers fuel of the quality required for the
Vessel’s trade and which is consistent with prudent vessel management
practices.

 

4.                Managers’ Obligations

 

4.1       The Managers undertake to use their best
endeavours to provide the agreed Management Services as agents for and on behalf
of the Owners in accordance with sound ship management practice customary in
the trade and at least equivalent to the standards followed with respect to
other vessels for which the Managers provide management services, if any, and
to protect and promote the interests of the Owners in all matters relating to
the provision of services hereunder.  Provided, however, that the Managers
in the performance of their management responsibilities under this Agreement
shall be entitled to have regard to their overall responsibility in relation to
all vessels as may from time to time be entrusted to their management and in
particular, but without prejudice to the generality of the foregoing, the
Managers shall be entitled to allocate available supplies, manpower and services
in such manner as in the prevailing circumstances the Managers in their
absolute discretion consider to be fair and reasonable.

 

4.2       Where the Managers are providing Technical
Management in accordance with sub-clause 3.2, they shall procure that
the requirements of the law of the flag of the Vessel are satisfied and they
shall in particular be deemed to be the “Company” as defined by the ISM Code,
assuming the responsibility for the operation of the Vessels and taking over
the duties and responsibilities imposed by the ISM Code when applicable.

 

4.3 
The Managers shall maintain records of technical matters relating to the
Vessels including maintenance, repairs and equipment replacement (“Technical
Vessel Matters”).   Three months after commencement of the Management
Services, and quarterly thereafter, the Managers shall issue a report to the
Owners providing a summary of the Technical Vessel Matters carried out in the
previous quarter.

 

5.                Owners’ Obligations

 

5.1       The Owners shall pay all sums due to the
Managers punctually in accordance with the terms of this Agreement.

 

6.                Insurance Policies

 

For so long
as the Managers continue to place the Owners’ Insurances (as defined below) on
behalf of the Owners in accordance with Clause 3.4 of this Agreement, the
Managers shall procure that:

 

6.1       at the Owners’ expense, each of the Vessels
is insured for not less than her sound market value or entered for her full
gross tonnage, as the case may be for:

 

(i)                                     usual
hull and machinery marine risks (including crew negligence) and excess
liabilities,

 

(ii)                                  protection
and indemnity risks (including pollution risks and Crew Insurances), and

 

(iii)                               war
risks (including protection and indemnity and crew risks) in accordance with
the best practice of prudent owners of vessels of a similar type to the Vessel,
with first class insurance companies, underwriters or associations
(collectively, as described in Clause 6.1(i), (ii) and (iii), the “Owners’
Insurances”);

 

 

6.2       all premiums and calls on the Owners’
Insurances are paid by their due date at Owners’ expense.   The Owners shall be responsible and liable
for, and shall promptly pay the deductible of any insurance claim relating to
or arising out of the operation or management of the Vessels.  The Owners shall be responsible and liable
for the allocated cost of any broker’s fee paid by the Managers as determined
by the Managers on a fair and equitable basis.

 

6.3       the Owners’ Insurances name the Managers
and, subject to underwriters’ agreement, any third party designated by the
Managers as a joint assured, with full cover, with the Owners obtaining cover
in respect of each of the Owners’ Insurances specified in sub-clause 6.1:

 

(i)                                     If
reasonably obtainable, on terms such that neither the Managers nor any such
third party shall be under any liability in respect of premiums or calls
arising in connection with the Owners’ insurances; or

 

Indicate alternative (i), (ii) or (iii) in Box 14.  If Box 14 is left blank then
(i) applies.

 

6.4       written evidence is provided, to the
reasonable satisfaction of the Owners, of Managers’ compliance with their
obligations under Clause 6 
within a reasonable time of the commencement of the Agreement, and of
each renewal date and, if specifically requested, of each payment date of the
Owners’ Insurances.

 

6.5       loss of hire insurance is maintained in
accordance with Clause 27.

 

6.6       the Managers shall obtain a certificate of
financial responsibility in accordance with the terms of any charter, and any
costs relating to such certificate shall be for the Owners’ account.

 

7.                Income Collected and
Expenses Paid on Behalf of Owners

 

7.1       All moneys collected by the Managers under
the terms of this Agreement (other than moneys payable by the Owners to the
Managers) and any interest thereon shall be held to the credit of the Owners in
a separate bank account.

 

7.2       All expenses incurred by the Managers under
the terms of this Agreement on behalf of the Owners (including expenses as
provided in Clause 8 ) may be debited against the Owners in the
account referred to under sub-clause  7.1  but shall in any event remain payable by the
Owners to the Managers on demand.

 

8.                Termination Payments

 

8.1       In the event of the appointment of the
Managers being terminated by the Owners or the Managers in accordance with the
provisions of Clauses 17 and 20 other than by reason of default by the
Managers, or if the Vessels are lost, sold or otherwise disposed of, all other
expenses which became due and payable to the Managers through the date of
termination, including all severance costs, shall be immediately due and
payable.

 

9.                Budgets and Management of
Funds

 

9.1   The
Managers shall prepare annually a Budget estimating the annual Operating Costs
for the following twelve months.  Such
budget shall include the estimated cost of anticipated drydockings schedule to
be performed on the Vessels during the particular year covered by the Budget.  The budget for the first year hereof is set
out in Annex “C” hereto.  Subsequent
annual budgets shall be prepared by the Managers not less than three months
before the anniversary date of the commencement of this Agreement (see Clause 2
and Box 4).

 

9.2   Following
its preparation of the budget, the Managers shall prepare their estimate of the
working capital requirement of the Vessels and the Managers shall each month
up-date this estimate.  Based thereon,
the Managers shall each month request the Owners in writing for the funds
required to operate the Vessels for the ensuing month and payment of any
occasional or extraordinary item of expenditure, as described in Clauses 25, 26
and 28, additional insurance premiums, bunkers or provisions or any other
unbudgeted Operating Cost reasonably or necessarily incurred by the Managers in
the operation of the Vessels.  Such funds
shall be received by the Managers within ten running days after the receipt by
the Owners of the Managers’ written request and shall be held to the credit of
the Managers in a separate bank account. 
As provided in Clause 7.2, the Managers may debit all expenses incurred
by the Managers under this Agreement against this account.

 

9.3   The
Managers shall produce a comparison between budgeted and actual income and
expenditure of the Vessels monthly or at such other intervals as determined by
the Managers.

 

9.4   The
Managers shall, at no extra cost to the Owners, provide their own office
accommodations, office staff, facilities and stationery.

 

 

9.5   All
discounts and commissions obtained by the Managers in the course of the
management of the Vessels shall be credited to the Owners.

 

9.6   Notwithstanding
anything contained herein to the contrary, the Managers shall in no
circumstances be required to use or commit their owner funds to finance the
provision of the Management Services.

 

10.         Managers Right to
Sub-Contract

 

The Managers
shall have the right to sub-contract any of their obligations hereunder and may
(i) freely assign any obligations hereunder to any affiliate of the
Managers at any time and (ii) utilize the services of third parties to
fulfill the Managers’ obligations hereunder.  In the event of such a
sub-contract the Managers shall remain fully liable for the due performance of
their obligations under this Agreement.

 

11.          Responsibilities

 

11.1   Force Majeure - Neither the Owners nor the Managers shall
be under any liability for any failure to perform any of their obligations
hereunder by reason of any cause whatsoever of any nature or kind beyond their
reasonable control.

 

11.2   Liability to
Owners
- (i) Without prejudice to sub-clause 11.1, the Managers shall be
under no liability whatsoever to the Owners for any loss, damage, delay or
expense of whatsoever nature, whether direct or indirect, (including but not
limited to loss of profit arising out of or in connection with detention of or
delay to the Vessels) and howsoever arising in the course of performance of the
Management Services UNLESS same is
proved to have resulted solely from the gross negligence or wilful default of
the Managers or their employees, or agents or sub-contractors employed by them
in connection with the Vessels, in which case  (save where loss, damage,
delay or expense has resulted from the Managers’ personal act or omission committed
with the intent to cause same or recklessly and with knowledge that such loss,
damage, delay or expense would probably result)  the Managers’ liability
for each incident or series of incidents giving rise to a claim or claims shall
never exceed $50,000.

 

(ii)  Notwithstanding
anything that may appear to the contrary in this Agreement, the Managers shall
not be liable for any of the actions of the Crew, even if such actions are
negligent, grossly negligent or wilful, except only to the extent that they are
shown to have resulted from a failure by the Managers to discharge their
obligations under sub-clause  3.1, in which case their liability
shall be limited in accordance with the terms of this Clause 11.   The Managers shall not, under any
circumstances be liable for any losses, costs, claims, liabilities and expenses
which the Owners may sustain as a consequence of such pre-existing or latent
defects in the Vessels, their systems, equipment and machinery.

 

11.3   Indemnity - Except to the extent and solely for the
amount therein set out that the Managers would be liable under sub-clause 
11.2 , the Owners hereby undertake to keep the Managers and their
employees, agents and sub-contractors indemnified and to hold them harmless
against all actions, proceedings, claims, demands or liabilities whatsoever or
howsoever arising which may be brought against them or incurred or suffered by
them arising out of or in connection with the performance of the Agreement,
including, without limitation, all actions, proceedings, claims demands or
liabilities brought under or relating to the U.S. Oil Pollution Act. CERCLA and
any other environmental or pollution liability or compensation laws,
regulations or conventions of any jurisdiction, and against and in respect of
all costs, losses, damages and expenses (including legal costs and expenses on
a full indemnit y basis) which the Managers may suffer or incur (either
directly or indirectly) in the course of the performance of this Agreement.

 

11.4   The
Owners further undertake to indemnify the Managers, their employees, agents and
sub-contractors against all taxes, imposts, fines and duties levied by any
government as a result of the Vessels’ operations, regardless of whether such
taxes, imposts, fines and duties are levied on the Vessels, the Owners or the
Managers.  Such indemnity shall not apply
to taxes imposed on amounts paid to the Managers as consideration for the
Management Services it shall provide under the terms of this Agreement.

 

11.5    The
provisions and undertakings of this Clause 11 shall remain in force
notwithstanding the termination of this Agreement pursuant to Clauses 17 and
20.

 

11.6   “Himalaya” - It is hereby expressly agreed that no
employee or agent of the Managers (including every sub-contractor from time to
time employed by the Managers) shall in any circumstances whatsoever be under
any liability whatsoever to the Owners for any loss, damage or delay of
whatsoever kind arising or resulting directly or indirectly from any act,
neglect or default on his part while acting in the course of or in connection
with his employment and, without prejudice to the generality of the foregoing
provisions in this Clause 11 , every exemption, limitation,
condition and liberty herein contained and every right, exemption from
liability, defence and immunity of whatsoever nature applicable to the Managers
or to which the Managers are entitled hereunder shall also be available and
shall extend to protect every such employee or agent of the Managers acting as
aforesaid and for the purpose of all the foregoing provisions of this
Clause 11 the Managers are or shall be deemed to be acting as agent or
trustee on behalf and for the benefit of all persons who are or might be their
servants or agents from time to time (including sub-contractors as aforesaid)
and all such persons shall to this extent be or be deemed to be parties to this
Agreement.

 

 

12.              Documentation

 

Where the
Managers are providing Technical Management in accordance with sub-clause 3.2
and/or Crew Management in accordance with sub-clause  3.1 , they
shall maintain all documentation and records related to the Safety Management
System (SMS) and/or the Crew which the Owners need in order to demonstrate
compliance with the ISM Code and STCW 95 or to defend a claim against a
third party.  The Owners shall make available, upon Managers’ request, all
information, documentation and records required under any flag state law,
regulation or international convention and to inform the Managers of any
changes to those of the Owner’s details that that are required in the Vessels’
continuous synopsis record for the purposes of the ISPS Code .

 

13.             General
Administration

 

13.1   The
Managers shall handle and settle all first party and third-party claims arising
out of the operation of the Vessels as provided hereunder including the
settlement of any claims relating to general average or total constructive
loss.

 

13.2   The
Managers shall bring or defend and negotiate settlement of actions, suits or
proceedings in connection with matters entrusted to the Managers according to
this Agreement.

 

13.3   The
Managers shall appoint average adjusters and arrange for assistance in
preparing average accounts, taking security for cargo’s and freights proportion
of average.  The Managers shall also have
power to obtain legal or technical or other outside expert advice in relation
to the handling and settlement of claims and disputes or all other matters
affecting the interests of the Owners in respect of the Vessels and shall
arrange for the provision of any necessary guarantee bond or other security.

 

13.4   Any
costs reasonably incurred by Managers in carrying out its obligations according
to Clause 13 in connection with matters entrusted to the Managers under this
Agreement shall be reimbursed by the Owners.

 

13.5   The
Managers are authorized to receive sums payable by third parties to the Owners,
including, but not limited to the proceeds of insurance subject to Clause 27,
the settlement of claims and under any legal proceedings or arbitrations or any
settlement of claims.  Where the event(s) which form the subject of
such claims have caused the Managers expense under this Agreement, the Managers
are entitled to retain all or part of such settlements equal to the amount
expended by the Managers.

 

14.             Auditing

 

The Managers
shall at all times maintain and keep true and correct accounts and shall make
the same available for inspection and auditing by the Owners at such times as
may be mutually agreed.  On the
termination, for whatever reasons, of this Agreement, the Managers shall
release to the Owners, if so requested, the originals where possible, or
otherwise certified copies, of all such accounts and all documents specifically
relating to the Vessels and their operation.

 

15.      Compliance with Laws
and Regulations

 

The Managers
will not do or permit to be done anything which might cause any breach or
infringement of the laws and regulations of the Vessels’ flag, or of the places
where they trade.

 

16.      Duration of the
Agreement

 

This
Agreement shall come into effect in accordance with Clause 2 and terminate
in accordance with Clauses 17 and 20.

 

17.      Termination

 

17.1   Owners’ default

 

(i)                 The
Managers shall be entitled to terminate the Agreement with immediate effect by
notice in writing if any moneys payable by the Owners under this Agreement
shall not have been received in the Managers’ nominated account within ten
running days of receipt by the Owners of the Managers’ written request or if
the Vessel is repossessed by the Mortgagees.

 

(ii)                If
the Owners: proceed with the employment of or continue to employ the Vessel in
the carriage of contraband, blockade running, or in an unlawful trade, or on a
voyage which in the reasonable opinion of the Managers is unduly hazardous or
improper, the Managers may give notice of the default to the Owners, requiring
them to remedy it as soon as practically possible.  In the event that the
Owners fail to remedy it within a reasonable time to the satisfaction of the
Managers, the Managers shall be entitled to terminate the Agreement with
immediate effect by notice in writing.

 

 

17.2               Managers’ Default

 

If the
Managers fail to meet their obligations under Clauses 3 and 4
of this Agreement for any reason within the control of the Managers, the Owners
may give notice to the Managers of the default, requiring them to remedy it as
soon as practically possible.  In the event that the Managers fail to
remedy it within a reasonable time to the satisfaction of the Owners, the
Owners shall be entitled to terminate the Agreement with immediate effect by
notice in writing.

 

17.3               Extraordinary Termination

 

This
Agreement shall be deemed to be terminated with respect to any particular
Vessel that is sold or which becomes a total loss or is declared as a
constructive or compromised or arranged total loss or is requisitioned.  Any such Vessel shall be deemed striken from
Exhibit A, as of the date and time of its sale or loss.

 

17.4               For the purpose of sub-clause 8.3
hereof

 

(i)                     the
date upon which the Vessel is to be treated as having been sold or otherwise
disposed of shall be the date on which the Owners cease to be registered as
Owners of the Vessel;

 

(ii)                    the
Vessel shall not be deemed to be lost unless either she has become an actual
total loss or agreement has been reached with her underwriters in respect of
her constructive, comprised or arranged total loss or if such agreement with
her underwriters is not reached it is adjudged by a competent tribunal that a
constructive loss of the Vessel has occurred.

 

17.5                  This Agreement shall terminate forthwith in
the event of an order being made or resolution passed for the winding up,
dissolution, liquidation or bankruptcy of either party (otherwise than for the
purpose of reconstruction or amalgamation) or if a receiver is appointed, or if
it suspends payment, ceases to carry on business or makes any special
arrangement or composition with its creditors.

 

17.6                  The termination of this Agreement shall be
without prejudice to all rights accrued due between the parties prior to the
date of termination.

 

18.         Law and Arbitration

 

18.1                  This Agreement shall be governed and
construed in accordance with Title 9 of the United States Code, the General
Maritime Law of the United States, and to the extend such laws are not
applicable, the laws of the State of New York, without reference to its
conflicts of laws principles. Any dispute arising out of or in connection with
this Agreement shall be referred to arbitration in New York in accordance with
the rules of the Society of Maritime Arbitrators, Inc., New York
(SMA).  Any award of the arbitrator(s) shall be final and binding and
not subject to appeal.

 

19.         Notices

 

19.1                  Any notice to be given by either party to
the other party shall be in writing and may be sent by fax, telex, registered
or recorded mail or by personal service.

 

19.2                 The address of the Parties for service of
such communication shall be as stated in Boxes 19 and 20,
respectively.

 

 

ADDITIONAL
CLAUSES TO

SHIP
MANAGEMENT AGREEMENT

 

	
  TABLE OF CONTENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  DURATION AND TERMINATION

  	
  1

  
	
  21.

  	
  COMMUNICATIONS

  	
  1

  
	
  22.

  	
  ASSIGNMENT CLAUSE

  	
  1

  
	
  23.

  	
  THIRD PARTY RIGHTS

  	
  1

  
	
  24.

  	
  AMENDMENT OF LIST OF MANAGED VESSELS

  	
  1

  
	
  25.

  	
  CHANGES AND/OR IMPROVEMENT NECESSARY FOR THE
  OPERATION OF THE VESSEL OR IMPOSED BY LEGISLATION, CLASS OR VETTING
  APPROVALS

  	
  1

  
	
  26.

  	
  REIMBURSEMENT OF UNANTICIPATED REPAIR COSTS

  	
  2

  
	
  27.

  	
  LOSS OF HIRE INSURANCE

  	
  2

  
	
  28.

  	
  ISPS CODE

  	
  2

  
	
  29.

  	
  CASUALTY PLANNING AND MANAGEMENT

  	
  2

  
	
  30.

  	
  MANAGEMENT FEE

  	
  3

  
	
  31.

  	
  MISCELLANEOUS

  	
  3

  

 

 

20.       DURATION
AND TERMINATION

 

The term of this Agreement shall begin upon execution
of the Protocol of Acceptance of Delivery and Commencement of Ship Management
Services (Exhibit B hereto) and shall continue in force for a period of 5
years from the date of execution of said Protocol, unless terminated earlier in
accordance with Clause 17 of this Agreement; provided, however, that
(i) the Managers shall have the right to terminate this Agreement upon 90
days’ prior written notice to the Owners following the second anniversary of
the date of this Agreement and (ii) the Owners shall have the right to
terminate this Agreement upon 90 days’ prior written notice to the Managers at
any time.

 

21.       COMMUNICATIONS

 

All communications under this Agreement shall be in
the English language.

 

22.       ASSIGNMENT
CLAUSE

 

The Owners may, upon giving notice to the Managers,
assign all of their rights under this Agreement to any mortgagee of the Vessel
provided that such assignment shall not otherwise prejudice any of the rights
of the Managers under this Agreement. 
The Managers shall acknowledge any assignment that complies with this
Clause in such form as the mortgagee may reasonably request.

 

23.       THIRD
PARTY RIGHTS

 

Except as stated in this Clause, the parties to this
Agreement do not intend that any of the terms will be enforceable by any person
not a party to it.  This Clause shall not
apply to companies in the same corporate groups as either the Owners or the
Managers or to crew or to employees, subcontractors and agents of the Managers
to whom Clause 11.7 “Himalaya” would apply but for this Clause.

 

24.       AMENDMENT
OF LIST OF MANAGED VESSELS

 

The Vessels for which the Managers shall provide
Management Services, as defined in Clause 1, shall be identified in
Exhibit A.  It is understood that as
the composition of the Owners’ fleet changes, it shall, from time to time, be
necessary to add vessels to, or delete vessels from, Exhibit A.  Either party to this Agreement may initiate
such amendments to Exhibit A by serving written notice thereof on the
other party.  Such amendments shall
become effective as of the date of the other party’s written acceptance of the
proposed amendment.  As provided in
Clause 17.3, any vessel sold or otherwise lost shall be deemed stricken from
Exhibit A, as of the date and time of its sale or loss.

 

25.       CHANGES
AND/OR IMPROVEMENT NECESSARY FOR THE OPERATION OF THE VESSEL OR IMPOSED BY
LEGISLATION, CLASS OR VETTING APPROVALS

 

In the event that any improvement, structural change
or the installation or modification of equipment is imposed by
(a) compulsory legislation or regulations, (b) class rules or
(c) an oil company whose vetting approval is required pursuant to any
charter under which the Vessels are operating, the Managers shall, at the
expense of the Owners effect such improvement, structural change or equipment
installation or modification.  The Owners
shall reimburse the Managers for all costs arising under this Clause as
provided in Clause 9.

 

 

Any change, improvement or installation made pursuant
to this Clause 25 (other than any change or improvement to, or installation of,
equipment that belongs to the Managers or a third party) shall be the property
of Owners.

 

26.       REIMBURSEMENT
OF UNANTICIPATED REPAIR COSTS

 

In the event any extraordinary, emergency or otherwise
unanticipated repairs to the Vessel are required to be made which are not
included in the budgeting process described in Clause 9 and which are not fully
covered by hull and machinery insurance or warranty, the cost attributable to
such repairs, in excess of such insurance coverage and deductibles, which may
occur at a subsequent regularly scheduled drydocking or otherwise (in excess of
any applicable insurance or warranty payments) shall be for the account of the
Owners and shall be reimbursed to the Managers as provided in Clauses 7 and 9.

 

27.       LOSS
OF HIRE INSURANCE

 

The Managers shall procure, at the Owners’ expense,
loss of hire insurance on behalf of Owners on terms and conditions subject to
the availability of such coverage on commercially reasonable terms.  The Managers shall not be responsible for any
deductible payments with respect to such loss of hire insurance.  The Managers shall arrange for loss of hire
insurance, with deductible periods, daily indemnity amounts and maximum
coverages that are in conformity with prudent vessel management practices, to
be in place as of the effective date of this Agreement.

 

28.       ISPS
CODE

 

The Managers shall perform the duties of the “Company”
as required by the ISPS Code.  The
Managers shall also perform the Owners’ obligations and benefit from the
Owners’ rights under the BIMCO ISPS Code Time Charter Party Clause in any
charterparty under which the Vessels may be operating during the term of this
Agreement.  The Managers shall be
entitled to retain any sums received or recovered from Charterers or from any
other party in relation to ISPS Code actions and duties.  If the Managers incur expenditures as a
result of complying with the ISPS Code or making prudent security precautions
that are not recoverable from charterers pursuant to the BIMCO ISPS Code Time
Charter Party Clause, the Owners shall indemnify the Managers for such
expenditures, pursuant to Clause 9, as invoiced to the Owners with full
supporting documentation.

 

29.       CASUALTY
PLANNING AND MANAGEMENT

 

A.        The
Managers shall provide for the preparation and submission to relevant
authorities, and ensure timely approval by said authorities, of the following
oil pollution incident response plans:

 

(1)                         A Shipboard Oil Pollution Emergency Plan
(“SOPEP”), pursuant to Regulation 26 of Annex I of the International Convention
for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of
1978, as amended (“MARPOL 73/78”); and

 

(2)                         A Vessel Response Plan (“VRP”), pursuant
to the U.S. Oil Pollution Act of 1990 (“OPA”) and implementing regulations
published at 33 C.F.R. Part 155.

 

B.         The
Managers shall provide training for the Vessels’ Crews to instruct cognizant
individuals of their duties and responsibilities under the VRP, as required by
OPA and 33 

 

2

 

C.F.R. § 155.1055, and shall conduct periodic
exercises of the VRP, as required by OPA and 33 C.F.R. § 155.1060.

 

C.         The
Managers shall maintain all records and other documentation, relating to oil
pollution incident emergency response planning, as may be required by MARPOL
73/78 and OPA, and its implementing regulations (33 C.F.R. Part 155,
Subpart D).

 

D.         In the
event of an oil pollution incident involving one of the Vessels, the Managers
shall ensure that timely notice of he incident is given, on its own behalf and
on behalf of the Owners, to relevant authorities, as may be required by MARPOL
73/78 and OPA.  The Managers shall also
ensure timely activation and efficient management of the Vessel’s VRP and/or
SOPEP upon the occurrence of any such oil pollution incident.

 

E.         The
Managers are expressly authorized to act as agents for the Owners to enter into
arrangements, by contract or otherwise, with third-party contractors,
consultants and other providers, to ensure the availability of the services
called for in the VRP, SOPEP or which might from time to time be necessary to
comply with the provisions of OPA, MARPOL 73/78 or any other Federal, State or
International environmental requirement.

 

30.       MANAGEMENT
FEE

 

In addition to its obligations, under Clauses 9 and
26, to reimburse the Managers for all the anticipated and unanticipated costs of
managing the Vessels under this Agreement, the Owners shall also pay a
management fee (the “Management Fee”) to the Managers for the Management
Services.  The Management Fee, payable
monthly in advance based upon the actual number of days in the applicable
month, shall be equal to four percent of the total monthly payroll cost of all
the crew who serve on board the Vessels. 
The Management Fee shall be included in the annual estimated budgeting
process described in Clause 9 and shall be paid to the Managers as provided in
Clause 7.2.

 

31.       MISCELLANEOUS

 

A.        The
Owners and the Managers severally agree to perform or cause to be performed
such action, and to execute, deliver or furnish or to cause to be executed,
delivered or furnished, all such further assurances, certificates, opinions and
other documents necessary or proper to carry out this Agreement.

 

B.         No
change in, or modification of, this Agreement shall be effective unless reduced
to writing and signed by the Owners and the Managers.

 

C.         The
invalidity of any provision of this Agreement shall not affect the remainder
hereof, which shall in such event be construed as if such invalid provision had
not been inserted.

 

D.         This
Agreement consists of Parts I and II of the Bimco Standard Ship Management
Agreement (“Shipman 98”) Form, these Additional Clauses, and the Exhibits
hereto.  All parts of this Agreement
shall be read together as a single agreement and in a manner that promotes
consistency between all parts of this Agreement.  No single part of this Agreement shall be
given greater weight than any other part of this Agreement in determining the
intended agreement of the parties hereto.

 

3

 

E.         This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which, taken together, shall constitute one and
the same instrument.  Original signatures
hereto may be delivered by facsimile which shall be deemed originals.

 

F.         The
failure of either party to enforce any term of this Agreement shall not act as
a waiver.  Any waiver must be
specifically stated as such in writing.

 

4

 

EXHIBIT
A

 

LIST OF
MANAGED VESSELS

 

 

EXHIBIT
B

 

PROTOCOL
OF DELIVERY AND

COMMENCEMENT OF SHIP MANAGEMENT SERVICES

 

OSG America L.P. (“Owners”) and OSG Ship
Management, Inc. (“Managers”), each having its business address at Two
Harbour Place, 302 Knights Run Avenue, Tampa FL 
33602, each for itself does hereby certify that:

 

At        :         hours, Eastern                          Time, on                                    , 20       , the Owners accepted delivery of the
U.S.-flag tank vessels identified in Exhibit A to the Ship Management
Agreement between the Owners and Managers, dated [date] (the “Ship Management
Agreement”).

 

Commencing at the time and date of its acceptance of
delivery of said Vessels, as documented herein, the Owners appoint the Managers
as the managers of the Vessels pursuant to the terms and provisions of the Ship
Management Agreement.

 

IN WITNESS WHEREOF, the Owners and the Managers have
executed this Protocol of Delivery and Commencement of Ship Management Services
as of
                                      ,
2007.

 

	
  OWNERS:

  	
  MANAGERS:

  
	
   

  	
   

  
	
  OSG America L.P.

  	
  OSG Ship Management, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Name:

  
	
   

  	
  Title

  	
   

  	
  Title

  
						

 

 

Exhibit C

 

Signatures of: (a) OSG America L.P.; and (b) the Owners of the Vessels
for which the Managers shall provide Management Services, as defined in Clause
1, are set forth below. It is understood that as the composition f the Owners’
fleet changes, it shall, from time to time, be necessary to add signature lines
or delete signature lines from this Exhibit. As provided in Clause 18.3, the
signature line for the owner of any vessel sold or otherwise lost shall be
deemed stricken from this Exhibit as of the date and time of its sale or loss.

 

	
  OSG AMERICA L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  OSG America LLC, its General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Myles R. Itkin

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Myles R. Itkin

  	
   

  
	
   

  	
   

  
	
  Title: Chief Financial Officer and Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Owned vessels:

  	
   

  
	
   

  	
   

  
	
  OSG Columbia LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Alan G. Himmelstein

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Alan G. Himmelstein

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Overseas Diligence LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG Enterprise LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  

 

1

 

	
  OSG Honour LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG Independence LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Overseas Integrity LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG Intrepid LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG Navigator LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Peter N. Popov

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Peter N. Popov

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  

 

2

 

	
  OSG Seafarer LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Alan G. Himmelstein

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Alan G. Himmelstein

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG 209 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Peter N. Popov

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Peter N. Popov

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG 214 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG 242 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG 243 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  

 

3

 

	
  OSG 244 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG 252 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Peter N. Popov

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Peter N. Popov

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  OSG 254 LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Alan G. Himmelstein

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Alan G. Himmelstein

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Overseas Galena Bay LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Luxmar Tanker LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  

 

4

 

	
  Maremar Tanker LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Overseas Puget Sound LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Leased vessels:

  	
   

  
	
   

  	
   

  
	
  Overseas Houston LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Overseas Longbeach LLC

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Janice K. Smith

  	
   

  	
   

  
	
   

  
	
  Name: Janice K. Smith

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
	
   

  	
   

  
	
  Overseas New Orleans LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  

 

5

 

	
  Overseas Philadelphia LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James I. Edelson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: James I. Edelson

  	
   

  
	
   

  	
   

  
	
  Title: Manager

  	
   

  
				

 

6

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